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  • 25th consecutive year of record net revenues of $3.8 billion, an increase of 12.4% compared with 2019.
  • Quarterly record net revenues of $1.1 billion, an increase of 20.0% over the third quarter of 2020.
  • Record quarterly net income available to common shareholders of $180.8 million, or $1.55 per diluted common share.(1)
  • Record non-GAAP net income available to common shareholders of $195.1 million, or $1.67 per diluted common share.(1)
  • Record client assets of $357.4 billion, increased 8.5% compared with the year-ago quarter.
  • Annualized return on average tangible common shareholders’ equity(2) was 30.8%.
  • Non-GAAP annualized return on average tangible common shareholders’ equity(2) was 33.3%.
  • Increasing quarterly dividend by approximately 32% to $0.15 per common share starting in first quarter of 2021.

ST. LOUIS, Jan. 29, 2021 (GLOBE NEWSWIRE) — Stifel Financial Corp. (NYSE: SF) today reported record net income available to common shareholders of $180.8 million, or $1.55 per diluted common share(1) on record net revenues of $1.1 billion for the three months ended December 31, 2020, compared with net income available to common shareholders of $125.8 million, or $1.08 per diluted common share,(1) on net revenues of $944.3 million for the fourth quarter of 2019.

For the three months ended December 31, 2020, the Company reported record non-GAAP net income available to common shareholders of $195.1 million, or $1.67 per diluted common share.(1) The Company’s reported GAAP net income for the three months ended December 31, 2020 was primarily impacted by merger-related expenses. Details discussed below and in the “Non-GAAP Financial Matters” section.

Chairman’s Comments

“Stifel’s performance in 2020 was a testament to the strength of our business model as we were able to navigate market challenges and generated our 25th consecutive year of record net revenue. We entered the year expecting two of our primary growth drivers to be continued strength in net interest income and advisory revenue. However, following the pandemic outbreak, Stifel and our associates were able to successfully pivot to the subsequent changes in the market environment and we finished the year with record results from our brokerage and capital raising businesses. Our record revenue also generated record non-GAAP earnings per share of $4.56 and non-GAAP return on tangible equity of nearly 25%,” stated Ronald J. Kruszewski, Chairman and Chief Executive Officer of Stifel.

Mr. Kruszewski continued, “We entered 2021 with record recruiting and investment banking pipelines, record client assets, and more than $500 million of excess capital. These factors, combined with our long history of profitable growth, drive my optimism for 2021 and beyond.”

Fourth Quarter Review

Quarterly Highlights

  • Record net revenues of $1.1 billion, increased 12.2% with the year-ago quarter, and increased 20.0% sequentially.
  • Record net revenues in Global Wealth Management and Institutional Group segments.
  • Record net income available to common shareholders of $180.8 million, or $1.55 per diluted common share.(1)
  • Record non-GAAP net income available to common shareholders of $195.1 million, or $1.67 per diluted common share.(1)
 
Financial Highlights (Unaudited)   Three Months Ended  
($ in 000s, except per share data)   GAAP 12/31/20     GAAP 12/31/19     % Change     GAAP 9/30/20     % Change       Non-
GAAP
(3) 12/31/20
    Non-
GAAP (3) 12/31/19
    % Change  
Net revenues   $ 1,059,910     $ 944,251       12.2     $ 883,300       20.0       $ 1,059,883     $ 944,425       12.2  
Net income applicable to Stifel Financial Corp.   $ 188,469     $ 130,690       44.2     $ 120,527       56.4       $ 202,731     $ 151,442       33.9  
Preferred dividends     7,677       4,843       58.5       9,897       (22.4 )       7,677       4,843       58.5  
Net income available to common shareholders   $ 180,792     $ 125,847       43.7     $ 110,630       63.4       $ 195,054     $ 146,599       33.1  
Earnings per diluted common share (1)   $ 1.61     $ 1.12       43.8     $ 1.06       51.9       $ 1.74     $ 1.30       33.8  
Earnings per diluted common share available to common shareholders (1)   $ 1.55     $ 1.08       43.5     $ 0.97       59.8       $ 1.67     $ 1.26       32.5  
Compensation ratio     58.6 %     60.0 %             60.4 %               57.9 %     58.3 %        
Non-compensation ratio     19.3 %     22.8 %             21.7 %               18.3 %     21.2 %        
Pre-tax operating margin (4)     22.1 %     17.2 %             17.9 %               23.8 %     20.5 %        

Net Revenues

Net revenues were a record $1.1 billion for the fourth quarter of 2020, a 12.2% increase from the fourth quarter of 2019 and a 20.0% increase from the third quarter of 2020. Net revenues, compared with the fourth quarter of 2019, reflected higher brokerage revenues, an increase in capital raising and advisory fee revenues and asset management and service fees, partially offset by a decline in net interest income. Net revenues, compared with the third quarter of 2020, reflected increased capital raising and advisory fee revenues, growth in brokerage revenues and asset management and services fees, as well as higher net interest income.

Brokerage Revenues

Brokerage revenues, defined as commissions and principal transactions, were $342.6 million, an 18.3% increase compared with the fourth quarter of 2019 and a 9.3% increase compared with the third quarter of 2020.

    Three Months Ended  
($ in 000s)   12/31/20     12/31/19     % Change     9/30/20     % Change  
Global Wealth Management   $ 185,719     $ 174,000       6.7     $ 162,627       14.2  
Institutional brokerage:                                        
Equity capital markets     69,201       45,989       50.5       54,204       27.7  
Fixed income capital markets     87,664       69,563       26.0       96,706       (9.3 )
Total institutional brokerage     156,865       115,552       35.8       150,910       3.9  
Total brokerage revenues   $ 342,584     $ 289,552       18.3     $ 313,537       9.3  
  • Global Wealth Management brokerage revenues were $185.7 million, a 6.7% increase compared with the fourth quarter of 2019 and a 14.2% increase compared with the third quarter of 2020.
  • Institutional equity brokerage revenues were $69.2 million, a 50.5% increase compared with the fourth quarter of 2019 and a 27.7% increase compared with the third quarter of 2020.
  • Institutional fixed income brokerage revenues were $87.7 million, a 26.0% increase compared with the fourth quarter of 2019 and a 9.3% decrease compared with the third quarter of 2020.

Investment Banking Revenues

Investment banking revenues were a record $337.7 million, a 21.8% increase compared with the fourth quarter of 2019 and a 54.8% increase compared with the third quarter of 2020.

    Three Months Ended  
($ in 000s)   12/31/20     12/31/19     % Change     9/30/20     % Change  
Capital raising:                                        
Global Wealth Management   $ 9,562     $ 9,278       3.1     $ 8,113       17.9  
                                         
Equity capital markets     104,097       64,384       61.7       78,462       32.7  
Fixed income capital markets     50,613       48,181       5.0       50,717       (0.2 )
Institutional Group     154,710       112,565       37.4       129,179       19.8  
Total capital raising (6)     164,272       121,843       34.8       137,292       19.7  
Advisory fees     173,395       155,331       11.6       80,842       114.5  
Total investment banking (6)   $ 337,667     $ 277,174       21.8     $ 218,134       54.8  
  • Global Wealth Management capital raising revenues were $9.6 million, a 3.1% increase compared with the fourth quarter of 2019 and a 17.9% increase compared with the third quarter of 2020.
  • Institutional equity capital raising revenues were $104.1 million, a 61.7% increase compared with the fourth quarter of 2019 and a 32.7% increase compared with the third quarter of 2020.
  • Institutional fixed income capital raising revenues were $50.6 million, a 5.0% increase compared with the fourth quarter of 2019 and a 0.2% decrease compared with the third quarter of 2020.
  • Advisory fee revenues were $173.4 million, an 11.6% increase compared with the fourth quarter of 2019 and a 114.5% increase compared with the third quarter of 2020.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were a record $249.9 million, an 11.6% increase compared with the fourth quarter of 2019 and an 8.3% increase compared with the third quarter of 2020. The increase from the comparative period in 2019 is primarily attributable to higher asset values and strong fee-based asset flows. Please refer to the Asset Management and Service Fee Break-down table for additional details.

Net Interest Income

Net interest income of $105.4 million, a 22.3% decrease compared with the fourth quarter of 2019 and a 4.7% increase compared with the third quarter of 2020. The decrease from the fourth quarter of 2019 was primarily driven by the impact of lower interest rates. Please refer to the Net Interest Income Analysis table for additional details.

  • Interest income was $119.9 million, a 28.3% decrease compared with the fourth quarter of 2019 and a 4.8% increase compared with the third quarter of 2020.
  • Interest expense was $14.5 million, a 53.8% decrease compared with the fourth quarter of 2019 and a 5.0% increase compared with the third quarter of 2020.

Annual Review

Annual Highlights

  • Record net revenues of $3.8 billion, increased 12.4% compared with 2019.
  • Record net revenues in Global Wealth Management.
  • Record net revenues and pre-tax operating income in Institutional Group.
  • Record net income available to common shareholders of $476.2 million, or $4.16 per diluted common share.(1)
  • Record non-GAAP net income available to common shareholders of $522.8 million, or $4.56 per diluted common share.(1)

For year ended December 31, 2020, the Company reported record net income available to common shareholders of $476.2 million, or $4.16 per diluted common share(1) on record net revenues of $3.8 billion, compared with net income available to common shareholders of $431.1 million, or $3.66 per diluted common share,(1) on net revenues of $3.3 billion for the comparable in 2019.

For the year ended December 31, 2020, the Company reported non-GAAP net income available to common shareholders of $522.8 million, or $4.56 per diluted common share.(1) The Company’s reported GAAP net income for the year ended December 31, 2020 was primarily impacted by merger-related expenses. Details are discussed below and in the “Non-GAAP Financial Matters” section.

Financial Highlights (Unaudited)   Year Ended  
($ in 000s, except per share data)   GAAP
12/31/20
    GAAP
12/31/19
    %
Change
      Non-
GAAP
(3)
12/31/20
    Non-
GAAP (3)
12/31/19
    %
Change
 
Net revenues   $ 3,752,061     $ 3,337,030       12.4       $ 3,752,213     $ 3,337,204       12.4  
Net income applicable to Stifel Financial Corp.   $ 503,472     $ 448,396       12.3       $ 550,108     $ 496,955       10.7  
Preferred dividends     27,261       17,319       57.4         27,261       17,319       57.4  
Net income available to common shareholders   $ 476,211     $ 431,077       10.5       $ 522,847     $ 479,636       9.0  
Earnings per diluted common share (1)   $ 4.39     $ 3.80       15.5       $ 4.80     $ 4.22       13.7  
Earnings per diluted common share available to common shareholders (1)   $ 4.16     $ 3.66       13.7       $ 4.56     $ 4.07       12.0  
Compensation ratio     60.7 %     59.3 %               59.9 %     58.3 %        
Non-compensation ratio     21.9 %     22.7 %               21.1 %     21.8 %        
Pre-tax operating margin (5)     17.4 %     18.0 %               19.0 %     19.9 %        

Net Revenues

Net revenues were a record $3.8 billion for the year ended December 31, 2020, a 12.4% increase compared with 2019. Net revenues, compared with 2019, reflected significantly higher brokerage revenues, increased capital raising revenues, and asset management and service fees, partially offset by lower net interest income and advisory fee revenues.

Brokerage Revenues

Brokerage revenues were $1.3 billion, a 25.8% increase compared with 2019.

    Year Ended  
($ in 000s)   12/31/20     12/31/19     % Change  
Global Wealth Management   $ 687,348     $ 649,699       5.8  
Institutional brokerage:                        
Equity capital markets     256,793       166,577       54.2  
Fixed income capital markets     404,789       255,969       58.1  
Total institutional brokerage     661,582       422,546       56.6  
Total brokerage revenues   $ 1,348,930     $ 1,072,245       25.8  
  • Global Wealth Management brokerage revenues were $687.3 million, a 5.8% increase compared with 2019.
  • Institutional equity brokerage revenues were $256.8 million, a 54.2% increase compared with 2019.
  • Institutional fixed income brokerage revenues were $404.8 million, a 58.1% increase compared with 2019.

Investment Banking Revenues

Investment banking revenues were $952.3 million, a 16.5% increase compared with 2019.

    Year Ended  
($ in 000s)   12/31/20     12/31/19     % Change  
Capital raising:                        
Global Wealth Management     36,005       37,915       (5.0 )
                         
Equity capital markets     306,031       204,405       49.7  
Fixed income capital markets     182,121       127,122       43.3  
Institutional Group     488,152       331,527       47.2  
Total capital raising (6)     524,157       369,442       41.9  
Advisory fees     428,147       447,979       (4.4 )
Total investment banking (6)   $ 952,304     $ 817,421       16.5  
  • Global Wealth Management capital raising revenues were $36.0 million, a 5.0% decrease compared with 2019.
  • Institutional equity capital raising revenues were $306.0 million, a 49.7% increase compared with 2019.
  • Institutional fixed income capital raising revenues were $182.1 million, a 43.3% increase compared with 2019.
  • Advisory fee revenues were $428.1 million, a 4.4% decrease compared with 2019.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were $917.4 million, an 8.2% increase compared with 2019. The increase is primarily attributable to higher asset values and strong fee-based asset flows.

Net Interest Income

Net interest income of $458.1 million, a 16.3% decrease compared with 2019. The decrease is primarily driven by the impact of lower interest rates.

  • Interest income was $523.8 million, a 27.7% decrease compared with 2019.
  • Interest expense was $65.8 million, a 63.0% decrease compared with 2019.

Fourth Quarter & Full Year 2020

Compensation and Benefits Expenses

For the quarter ended December 31, 2020, compensation and benefits expenses were $621.3 million, which included $7.4 million of merger-related and severance expenses (non-GAAP adjustments). This compares with $567.0 million in the fourth quarter of 2019 and $533.6 million in the third quarter of 2020. Excluding the non-GAAP adjustments, compensation and benefits as a percentage of net revenues were 57.9% in the fourth quarter of 2020 (non-GAAP measure).

For the year ended December 31, 2020, compensation and benefits expenses were $2.3 billion, which included $30.3 million of merger-related and severance expenses (non-GAAP adjustments), compared to $2.0 billion in 2019. Excluding the non-GAAP adjustments, compensation and benefits as a percentage of net revenues were 59.9% in the year ended December 31, 2020 (non-GAAP measure).

The increase in compensation and benefits expenses was primarily attributable to the change in the composition of revenues as compared to 2019.

    Three Months Ended     Year Ended  
($ in 000s)   12/31/20     12/31/19     12/31/20     12/31/19  
GAAP compensation and benefits   $ 621,344     $ 566,981     $ 2,279,335     $ 1,978,116  
As a percentage of net revenues     58.6 %     60.0 %     60.7 %     59.3 %
Non-GAAP adjustments: (7)                                
Merger-related and severance     (7,352 )     (16,304 )     (30,259 )     (32,367 )
Non-GAAP compensation and benefits   $ 613,992     $ 550,677     $ 2,249,076     $ 1,945,749  
As a percentage of non-GAAP net revenues     57.9 %     58.3 %     59.9 %     58.3 %

Non-Compensation Operating Expenses

For the quarter ended December 31, 2020, non-compensation operating expenses were $203.9 million, which included $10.4 million of merger-related expenses (non-GAAP adjustments). This compares with $214.7 million in the fourth quarter of 2019 and $191.3 million in the third quarter of 2020. Excluding the non-GAAP adjustments, non-compensation operating expenses as a percentage of net revenues for the quarter ended December 31, 2020 were 18.3% (non-GAAP measure).

The decrease in non-compensation operating expenses compared with the fourth quarter of 2019 was primarily due to significantly lower travel, entertainment, and conference-related expenses. In addition, the provision for credit losses and net provisions for litigation matters were lower. These decreases were partially offset by higher volume-related expenses, including investment banking transaction expenses, reflecting an increase in activity levels. In addition, occupancy expense and professional fees were higher.

For the year ended December 31, 2020, non-compensation operating expenses were $821.6 million, which included $30.1 million of merger-related expenses (non-GAAP adjustments), compared with $759.8 million in 2019. Excluding the non-GAAP adjustments, non-compensation operating expenses as a percentage of net revenues for the year ended December 31, 2020 were 21.1% (non-GAAP measure).

The increase in non-compensation operating expenses compared with 2019 was primarily attributable to an increase in the provision for credit losses as a result of the impact of COVID-19 on the broader economic environment (incorporating the impact of accounting for credit losses under the CECL standard)(8) and higher volume-related expenses, including investment banking transaction expenses, reflecting an increase in activity levels. In addition, occupancy expense and professional fees were higher. These increases were partially offset by significant decreases in travel, entertainment, and conference-related expenses as a result of the global pandemic.

    Three Months Ended     Year Ended  
($ in 000s)   12/31/20     12/31/19     12/31/20     12/31/19  
GAAP non-compensation expenses   $ 203,865     $ 214,677     $ 821,566     $ 759,776  
As a percentage of net revenues     19.3 %     22.8 %     21.9 %     22.7 %
Non-GAAP adjustments: (7)                                
Merger-related     (10,381 )     (14,964 )     (30,053 )     (28,663 )
Litigation-related                       (3,507 )
      (10,381 )     (14,964 )     (30,053 )     (32,170 )
Non-GAAP non-compensation expenses   $ 193,484     $ 199,713     $ 791,513     $ 727,606  
As a percentage of non-GAAP net revenues     18.3 %     21.2 %     21.1 %     21.8 %

Provision for Income Taxes

The GAAP effective income tax rate for the quarter ended December 31, 2020 was 19.7%. This compares with an effective income tax rate of 19.6% for the fourth quarter of 2019 and 23.9% for the third quarter of 2020. The adjusted non-GAAP effective income tax rate for the quarter ended December 31, 2020 was 19.7%.

The GAAP effective income tax rate for the year ended December 31, 2020 was 22.7%, compared with 25.0% in 2019. The adjusted non-GAAP effective income tax rate for the year ended December 31, 2020 was 22.7%.

    Three Months Ended     Year Ended  
($ in 000s)   12/31/20     12/31/19     12/31/20     12/31/19  
GAAP provision for income taxes   $ 46,232     $ 31,925     $ 147,688     $ 149,152  
GAAP effective tax rate     19.7 %     19.6 %     22.7 %     25.0 %
Non-GAAP adjustments: (7)                                
Merger-related, litigation-related, and severance     3,319       7,203       13,689       16,152  
Other     125       3,487       139        
      3,444       10,690       13,828       16,152  
Non-GAAP provision for income taxes   $ 49,676     $ 42,615     $ 161,516     $ 165,304  
Non-GAAP effective tax rate     19.7 %     22.0 %     22.7 %     25.0 %

Conference Call Information

Stifel Financial Corp. will host its fourth quarter 2020 financial results conference call on Friday, January 29, 2021, at 9:30 a.m. Eastern time. The conference call may include forward-looking statements.

All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID 1145988. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

Company Information

Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Century Securities Associates, Inc. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.

Forward-Looking Statements

This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. Stifel Financial Corp. disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected.

   
Summary Results of Operations (Unaudited)  
    Three Months Ended         Year Ended  
($ in 000s, except per share amounts)   12/31/20         12/31/19         %
Change
        9/30/20         %
Change
        12/31/20         12/31/19         %
Change
 
Revenues:                                                                                            
Commissions   $ 199,847         $ 183,144           9.1         $ 172,654           15.7         $ 760,627         $ 667,494           14.0  
Principal transactions     142,737           106,408           34.1           140,883           1.3           588,303           404,751           45.3  
Brokerage revenues     342,584           289,552           18.3           313,537           9.3           1,348,930           1,072,245           25.8  
                                                                                             
Advisory fees     173,395           155,331           11.6           80,842           114.5           428,147           447,979           (4.4 )
Capital raising     164,276           121,843           34.8           137,292           19.7           524,161           369,442           41.9  
Investment banking     337,671           277,174           21.8           218,134           54.8           952,308           817,421           16.5  
Asset management and service fees     249,928           223,969           11.6           230,782           8.3           917,424           848,035           8.2  
Other income     24,366           17,917           36.0           20,258           20.3           75,345           52,378           43.8  
Operating revenues     954,549           808,612           18.0           782,711           22.0           3,294,007           2,790,079           18.1  
Interest revenue     119,876           167,087           (28.3 )         114,411           4.8           523,832           724,882           (27.7 )
Total revenues     1,074,425           975,699           10.1           897,122           19.8           3,817,839           3,514,961           8.6  
Interest expense     14,515           31,448           (53.8 )         13,822           5.0           65,778           177,931           (63.0 )
Net revenues     1,059,910           944,251           12.2           883,300           20.0           3,752,061           3,337,030           12.4  
                                                                                             
Non-interest expenses:                                                                                            
Compensation and benefits     621,344           566,981           9.6           533,638           16.4           2,279,335           1,978,116           15.2  
Occupancy and equipment rental     73,729           64,327           14.6           68,598           7.5           274,664           242,893           13.1  
Communication and office supplies     40,443           39,845           1.5           40,123           0.8           164,736           147,428           11.7  
Commissions and floor brokerage     12,687           11,505           10.3           13,254           (4.3 )         55,960           44,011           27.2  
Provision for credit losses               4,412         n/m           (1,353 )       n/m           33,925           9,977           240.0  
Other operating expenses     77,006           94,588           (18.6 )         70,647           9.0           292,281           315,467           (7.3 )
Total non-interest expenses     825,209           781,658           5.6           724,907           13.8           3,100,901           2,737,892           13.3  
Income before income taxes     234,701           162,593           44.3           158,393           48.2           651,160           599,138           8.7  
Provision for income taxes     46,232           31,925           44.8           37,866           22.1           147,688           149,152           (1.0 )
Net income     188,469           130,668           44.2           120,527           56.4           503,472           449,986           11.9  
Net income/(loss) applicable to non-controlling interests               (22 )       n/m                                         1,590         n/m  
Net income applicable to Stifel Financial Corp.     188,469           130,690           44.2           120,527           56.4           503,472           448,396           12.3  
Preferred dividends     7,677           4,843           58.5           9,897           (22.4 )         27,261           17,319           57.4  
Net income available to common shareholders   $ 180,792         $ 125,847           43.7         $ 110,630           63.4         $ 476,211         $ 431,077           10.5  
Earnings per common share: (1)                                                                                            
Basic   $ 1.70         $ 1.19           42.9         $ 1.04           63.4         $ 4.49         $ 3.99           12.5  
Diluted   $ 1.55         $ 1.08           43.5         $ 0.97           59.8         $ 4.16         $ 3.66           13.7  
                                                                                             
Cash dividends declared per common share (1)   $ 0.11         $ 0.10           10.0         $ 0.11                   $ 0.45         $ 0.40           12.5  
                                                                                             
Weighted average number of common shares outstanding: (1)                                                                                            
Basic     106,041           105,705           0.3           105,941           0.1           106,174           107,997           (1.7 )
Diluted     116,828           116,720           0.1           113,775           2.7           114,573           117,878           (2.8 )
                                                                                             
Summary Business Segment Results (Unaudited)  
    Three Months Ended     Year Ended  
($ in 000s)   12/31/20     12/31/19         %
Change
    9/30/20     %
Change
    12/31/20     12/31/19     %
Change
 
Net revenues:                                                                    
Global Wealth Management   $ 575,252     $ 552,945           4.0     $ 526,836       9.2     $ 2,190,826     $ 2,130,559       2.8  
Institutional Group     489,448       391,907           24.9       363,365       34.7       1,583,147       1,214,017       30.4  
Other     (4,790 )     (601 )       n/m       (6,901 )   n/m       (21,912 )     (7,546 )   n/m  
Total net revenues   $ 1,059,910     $ 944,251           12.2     $ 883,300       20.0     $ 3,752,061     $ 3,337,030       12.4  
                                                                     
Operating expenses:                                                                    
Global Wealth Management   $ 378,790     $ 356,650           6.2     $ 347,906       8.9     $ 1,464,942     $ 1,344,599       9.0  
Institutional Group     365,793       336,366           8.7       286,524       27.7       1,257,862       1,038,347       21.1  
Other     80,626       88,642           (9.0 )     90,477       (10.9 )     378,097       354,946       6.5  
Total operating expenses   $ 825,209     $ 781,658           5.6     $ 724,907       13.8     $ 3,100,901     $ 2,737,892       13.3  
                                                                     
Operating contribution:                                                                    
Global Wealth Management   $ 196,462     $ 196,295           0.1     $ 178,930       9.8     $ 725,884     $ 785,960       (7.6 )
Institutional Group     123,655       55,541           122.6       76,841       60.9       325,285       175,670       85.2  
Other     (85,416 )     (89,243 )         (4.3 )     (97,378 )     (12.3 )     (400,009 )     (362,492 )     10.3  
Income before income taxes   $ 234,701     $ 162,593           44.3     $ 158,393       48.2     $ 651,160     $ 599,138       8.7  
                                                                     
As a percentage of net revenues:                                                                  
Compensation and benefits                                                                    
Global Wealth Management     52.8       49.7                   52.7               52.0       49.1          
Institutional Group     58.1       63.7                   58.0               59.6       60.6          
Non-compensation operating expenses                                                                    
Global Wealth Management     13.0       14.8                   13.3               14.9       14.0          
Institutional Group     16.6       22.1                   20.9               19.9       24.9          
Income before income taxes                                                                    
Global Wealth Management     34.2       35.5                   34.0               33.1       36.9          
Institutional Group     25.3       14.2                   21.1               20.5       14.5          
Consolidated pre-tax margin     22.1       17.2                   17.9               17.4       18.0          
 
Financial metrics (unaudited): As of and For the Three Months Ended  
($ in 000s, except percentages and per share amounts) 12/31/20   12/31/19   9/30/20  
Total assets $ 26,604,254   $ 24,610,225   $ 25,549,182  
Total Stifel Financial shareholders’ equity   4,238,766     3,614,791     4,030,687  
Book value per common share (1) (9) $ 35.91   $ 32.24   $ 33.97  
Return on common equity (10)   20.0 %   15.6 %   12.8 %
Non-GAAP return on common equity (3) (10)   21.6 %   18.2 %   14.0 %
Return on tangible common equity (2)   30.8 %   25.7 %   20.4 %
Non-GAAP return on tangible common equity (2) (3)   33.3 %   29.9 %   22.2 %
Tier 1 common capital ratio (11) 16.5 %   15.2 %   15.4 %
Tier 1 risk based capital ratio (11) 20.2 %   17.6 %   19.2 %
Tier 1 leverage capital ratio (11) 11.9 %   10.0 %   11.3 %
Pre-tax margin on net revenues   22.1 %   17.2 %   17.9 %
Non-GAAP pre-tax margin on net revenues (3) (4)   23.8 %   20.5 %   19.4 %
Effective tax rate   19.7 %   19.6 %   23.9 %
Non-GAAP effective tax rate (3)   19.7 %   22.0 %   23.9 %
                   
Statistical Information (unaudited):   As of and For the Three Months Ended  
($ in 000s, except financial advisors and locations)   12/31/20     12/31/19     % Change     9/30/20     % Change  
Financial advisors     2,187       2,127       2.8       2,177       0.5  
Independent contractors     93       95       (2.1 )     94       (1.1 )
Total financial advisors     2,280       2,222       2.6       2,271       0.4  
Locations     450       446       0.9       451       (0.2 )
Total client assets (12)   $ 357,429,000     $ 329,495,000       8.5     $ 325,159,000       9.9  
Fee-based client assets (12)   $ 129,372,000     $ 117,189,000       10.4     $ 115,162,000       12.3  
Client money market and insured product   $ 22,837,000     $ 14,841,000       53.9     $ 20,367,000       12.1  
Secured client lending (13)   $ 2,816,973     $ 3,363,450       (16.2 )   $ 2,783,138       1.2  
                                         

  

    Asset Management and Service Fee Break-down (unaudited)  
Asset Management and Service Fee Revenues:   Three Months Ended  
($ in 000s)   12/31/20     12/31/19     % Change     9/30/20     % Change  
Private Client Group (14)   $ 208,238     $ 177,987       17.0     $ 190,799       9.1  
Asset Management     28,298       31,653       (10.6 )     27,539       2.8  
Third-party Bank Sweep Program     2,782       3,821       (27.2 )     1,623       71.4  
Other (15)     10,610       10,508       1.0       10,821       (1.9 )
Total asset management and service fee revenues   $ 249,928     $ 223,969       11.6     $ 230,782       8.3  
                                         
Fee-based Assets:   Three Months Ended  
($ in millions)   12/31/20     12/31/19     % Change     9/30/20     % Change  
Private Client Group (14)   $ 111,995     $ 92,110       21.6     $ 99,374       12.7  
Asset Management     29,864       36,525       (18.2 )     27,196       9.8  
Elimination (16)     (12,487 )     (11,446 )     9.1       (11,408 )     9.5  
Total fee-based assets   $ 129,372     $ 117,189       10.4     $ 115,162       12.3  
                                         
Third-party Bank Sweep Program   $ 6,555     $ 1,185       453.2     $ 4,691       39.7  
                                         
ROA (bps) (17)                                        
Private Client Group (14)     83.8       83.6               83.5          
Asset Management     37.9       34.7               40.5          
Third-party Bank Sweep Program     18.9       123.7               15.2          
                                         
Consolidated Net Interest Income Analysis (Unaudited):  
                                                                         
    Three Months Ended  
    December 31, 2020     December 31, 2019     September 30, 2020  
($ in millions, except percentages)   Average Balance     Interest
Income/ Expense
    Average
Interest Rate
    Average Balance     Interest
Income/ Expense
    Average
Interest Rate
    Average Balance     Interest
Income/ Expense
    Average
Interest Rate
 
Interest-earning assets:                                                                        
Cash and federal funds sold   $ 1,545.2     $ 1.1       0.28 %   $ 805.7     $ 3.6       1.80 %   $ 1,789.8     $ 1.1       0.25 %
Financial instruments owned     670.9       2.2       1.33       1,074.2       5.1       1.91       801.3       2.9       1.46  
Margin balances     869.0       5.9       2.70       1,291.7       11.6       3.58       872.5       5.8       2.66  
Investments:                                                                        
Asset-backed securities     4,826.6       21.5       1.78       4,511.8       38.8       3.44       4,838.7       25.3       2.09  
Mortgage-backed securities     758.8       2.6       1.38       987.9       5.1       2.06       824.0       3.2       1.55  
Corporate fixed income securities     602.8       4.1       2.74       663.7       4.8       2.89       551.8       3.5       2.50  
State and municipal securities     2.4             1.98       27.7       0.2       2.22       2.4             1.97  
Other     4.4       0.1       2.10       4.5             2.02       4.9             2.07  
Total Investments     6,195.0       28.3       1.83       6,195.6       48.9       3.16       6,221.8       32.0       2.06  
Loans:                                                                        
Commercial and industrial     4,206.7       32.7       3.11       3,380.0       36.9       4.37       4,036.3       30.1       2.98  
Residential real estate     3,820.8       27.7       2.90       3,144.9       24.0       3.06       3,711.2       26.1       2.81  
Securities-based loans     1,899.7       9.6       2.03       2,064.7       18.5       3.59       1,787.1       9.2       2.05  
Commercial real estate     379.1       3.3       3.52       386.2       5.8       6.03       400.0       3.8       3.76  
Loans held for sale     489.1       3.0       2.45       335.3       4.0       4.80       460.1       2.6       2.25  
Other     649.3       4.9       3.02       503.4       6.1       4.75       602.9       4.5       3.02  
Total Loans     11,444.7       81.2       2.84       9,814.5       95.3       3.88       10,997.6       76.3       2.77  
Other interest-bearing assets     469.6       1.2       1.00       642.4       2.6       1.59       547.7       (3.7 )     (2.69 )
Total interest-earning assets/interest income     21,194.4       119.9       2.26       19,824.1       167.1       3.37       21,230.7       114.4       2.16  
Interest-bearing liabilities:                                                                        
Short-term borrowings                       31.5       0.1       1.66                    
Senior notes     1,311.0       14.4       4.39       1,016.8       11.1       4.38       1,411.8       15.4       4.37  
Deposits     16,429.1       1.2       0.03       14,672.8       13.6       0.37       16,379.2       1.5       0.04  
FHLB     137.0       0.1       0.34       513.0       2.1       1.67       157.1       0.5       1.31  
Other interest-bearing liabilities     513.9       (1.2 )     (0.94 )     1,595.6       4.5       1.12       1,071.6       (3.6 )     (1.34 )
Total interest-bearing liabilities/interest expense   $ 18,391.0     $ 14.5       0.32 %   $ 17,829.7     $ 31.4       0.71 %   $ 19,019.7     $ 13.8       0.29 %
Net interest income/margin           $ 105.4       1.99 %           $ 135.7       2.74 %           $ 100.6       1.90 %
   
Stifel Bancorp, Inc. (18) Net Interest Income Analysis (Unaudited):  
                                                                         
    Three Months Ended  
    December 31, 2020     December 31, 2019     September 30, 2020  
($ in millions, except percentages)   Average
Balance
    Interest
Income/
Expense
    Average
Interest
Rate
    Average
Balance
    Interest
Income/
Expense
    Average
Interest
Rate
    Average
Balance
    Interest
Income/
Expense
    Average
Interest
Rate
 
Interest-earning assets:                                                                        
Cash and federal funds sold   $ 546.7     $ 0.2       0.15 %   $ 255.7     $ 1.2       1.83 %   $ 786.0     $ 0.3       0.14 %
Investments     6,195.0       28.3       1.83       6,195.6       48.9       3.16       6,221.8       32.0       2.06  
Loans     11,444.6       81.2       2.84       9,814.5       95.3       3.88       10,997.6       76.3       2.77  
Other interest-bearing assets     42.9       0.4       3.20       57.4       0.5       3.77       42.9       0.2       2.86  
Total interest-earning assets/interest income   $ 18,229.2     $ 110.1       2.42     $ 16,323.2     $ 145.9       3.58     $ 18,048.3     $ 108.8       2.41  
Interest-bearing liabilities:                                                                        
Deposits     16,429.1       1.2       0.03       14,672.8       13.6       0.37       16,379.2       1.5       0.04  
FHLB     137.0       0.1       0.34       513.0       2.1       1.67       157.1       0.5       1.31  
Other interest-bearing liabilities     1.4       0.1       9.87       1.6             7.85       1.5             6.08  
Total interest-bearing liabilities/interest expense   $ 16,567.5       1.4       0.03 %   $ 15,187.4       15.7       0.41 %   $ 16,537.8       2.0       0.05 %
Net interest income/margin           $ 108.7       2.39 %           $ 130.2       3.19 %           $ 106.8       2.37 %
   
Stifel Bancorp, Inc. (18) – a component of Global Wealth Management  
   
Selected operating data (unaudited): Three Months Ended     Year Ended  
($ in 000s, except percentages) 12/31/20     12/31/19     % Change     9/30/20     % Change     12/31/20     12/31/19     % Change  
Net interest income $ 108,699     $ 130,157       (16.5 )   $ 106,812       1.8     $ 466,940     $ 520,377       (10.3 )
Credit loss provision/(release)         4,412     n/m       (4,731 )   n/m       30,547       9,977       206.2  
Charge-offs         220     n/m       23     n/m       193       386       (50.0 )
Net interest margin   2.39 %     3.19 %   (80) bps       2.37 %   2 bps       2.60 %     3.15 %   (55) bps  
                                                         
Financial Metrics (unaudited):   As of  
($ in 000s, except percentages)   12/31/20     12/31/19     9/30/20  
Total assets   $ 18,867,133     $ 16,941,877     $ 17,854,768  
Total shareholders’ equity     1,399,382       1,207,469       1,378,981  
Total loans, net (includes loans held for sale)     11,558,008       10,013,735       10,932,235  
Total deposits     17,396,497       15,332,581       16,400,001  
Available-for-sale securities, at fair value     2,229,878       3,253,588       2,823,885  
Held-to-maturity securities, at amortized cost     4,114,840       2,853,360       3,395,115  
Commercial and industrial     4,296,089       3,438,953       4,080,939  
Residential real estate     3,956,670       3,309,548       3,804,836  
Securities-based loans     1,933,974       2,098,211       1,841,516  
Commercial real estate     366,485       428,549       386,957  
Loans held for sale     551,248       389,693       281,475  
Stifel Bank & Trust:                        
Common equity tier 1 capital ratio (11)   11.4 %     12.1 %     11.7 %
Tier 1 capital ratio (11)   11.4 %     12.1