Stifel Financial Corp. (NYSE: SF) today reported net revenues of
$1.15 billion for the three months ended December 31, 2023,
compared with $1.12 billion a year ago. Net income available to
common shareholders of $153.2 million, or $1.38 per diluted common
share, compared with $167.3 million, or $1.43 per diluted common
share for the fourth quarter of 2022. Non-GAAP net income available
to common shareholders of $166.6 million, or $1.50 per diluted
common share for the fourth quarter of 2023.
Net revenues of $4.35 billion for the year ended
December 31, 2023 compared to $4.39 billion a year ago. Net income
available to common shareholders of $485.3 million, or $4.28 per
diluted common share, compared with $624.9 million, or $5.32 per
diluted common share in 2022. Non-GAAP net income available to
common shareholders of $531.5 million, or $4.68 per diluted common
share in 2023.
Ronald J. Kruszewski, Chairman
and Chief Executive Officer, said “Stifel’s strong 2023 results
underscore the importance of our diversified business model as the
operating environment was less than ideal. Given our position as a
premier wealth management firm and middle market investment bank,
as well as the increased scale of our business, we see significant
opportunities for top and bottom line growth as market conditions
improve.”
Full Year Highlights
- The Company reported net revenues of
$4.35 billion, the third highest year in its history, as our
business navigated an environment that remains challenging.
- Non-GAAP net income available to
common shareholders of $4.68.
- Record net interest income, up 28%
over 2022.
- Record asset management revenues, up
3% over 2022.
- Recruited 171 financial advisors
during the year, including 76 experienced employee advisors and 9
experienced independent advisors.
- Non-GAAP pre-tax margin of 18% was
negatively impacted by elevated provisions for legal and regulatory
matters.
- Return on average tangible common
equity (ROTCE) (5) of 17%.
Fourth Quarter Highlights
- Quarterly net revenues of $1.15
billion.
- Non-GAAP net income available to
common shareholders of $1.50.
- Recruited 40 financial advisors
during the quarter, including 12 experienced employee advisors and
1 experienced independent advisor.
- Non-GAAP pre-tax margin of 19%.
- Annualized ROTCE (5) of 21%.
- Tangible book value per common share
(7) of $31.28, up 2% from prior year.
Other Highlights
- Board of Directors authorized a 17%
increase in common stock dividend starting in the first quarter of
2024.
|
Financial Summary (Unaudited) |
|
(000s) |
4Q 2023 |
4Q 2022 |
FY 2023 |
FY 2022 |
|
GAAP Financial Highlights: |
|
|
|
|
Net revenues |
$1,146,379 |
|
$1,121,647 |
|
$4,348,944 |
|
$4,391,439 |
|
|
Net income(1) |
$153,164 |
|
$167,301 |
|
$485,255 |
|
$624,874 |
|
|
Diluted EPS(1) |
$1.38 |
|
$1.43 |
|
$4.28 |
|
$5.32 |
|
|
Comp. ratio |
|
58.8% |
|
|
57.8% |
|
|
58.7% |
|
|
58.9% |
|
|
Non-comp. ratio |
|
23.2% |
|
|
21.4% |
|
|
25.1% |
|
|
20.9% |
|
|
Pre-tax margin |
|
18.0% |
|
|
20.8% |
|
|
16.2% |
|
|
20.2% |
|
|
Non-GAAP Financial Highlights: |
|
|
|
|
Net revenues |
$1,146,419 |
|
$1,121,643 |
|
$4,348,958 |
|
$4,391,490 |
|
|
Net income(1)(2) |
$166,587 |
|
$184,875 |
|
$531,524 |
|
$675,071 |
|
|
Diluted EPS(1) (2) |
$1.50 |
|
$1.58 |
|
$4.68 |
|
$5.74 |
|
|
Comp. ratio(2) |
|
58.0% |
|
|
56.5% |
|
|
58.0% |
|
|
58.0% |
|
|
Non-comp. ratio(2) |
|
22.6% |
|
|
20.6% |
|
|
24.3% |
|
|
20.3% |
|
|
Pre-tax margin(3) |
|
19.4% |
|
|
22.9% |
|
|
17.7% |
|
|
21.7% |
|
|
ROCE(4) |
|
14.6% |
|
|
16.0% |
|
|
11.5% |
|
|
15.0% |
|
|
ROTCE(5) |
|
21.3% |
|
|
22.9% |
|
|
16.6% |
|
|
21.8% |
|
|
Global Wealth Management (assets and loans
in millions) |
|
|
Net revenues |
$766,028 |
|
$744,341 |
|
$3,049,962 |
|
$2,825,866 |
|
| Pre-tax net income |
$301,360 |
|
$317,071 |
|
$1,215,822 |
|
$1,067,571 |
|
|
Total client assets |
$444,318 |
|
$389,818 |
|
|
|
|
Fee-based client assets |
$165,301 |
|
$144,952 |
|
|
|
|
Bank loans(6) |
$19,730 |
|
$20,622 |
|
|
|
|
Institutional Group |
|
|
|
|
|
Net revenues |
$359,292 |
|
$353,882 |
|
$1,226,317 |
|
$1,536,017 |
|
|
Equity |
$200,915 |
|
$220,033 |
|
$709,286 |
|
$935,507 |
|
|
Fixed Income |
$158,377 |
|
$133,849 |
|
$517,031 |
|
$600,510 |
|
| Pre-tax
net income |
$7,771 |
|
$44,512 |
|
$2,100 |
|
$254,132 |
|
Global Wealth Management
Fourth Quarter Results
Global Wealth Management reported record net
revenues of $766.0 million for the three months ended December 31,
2023 compared with $744.3 million during the fourth quarter of
2022. Pre-tax net income was $301.4 million compared with $317.1
million in the fourth quarter of 2022.
Highlights
- Recruited 40
financial advisors during the quarter, including 12 experienced
employee advisors and 1 experienced independent advisor with total
trailing 12 month production of $8 million.
- Client assets of
$444.3 billion, up 14% over the year-ago quarter.
- Fee-based client
assets of $165.3 billion, up 14% over the year-ago quarter.
Net revenues increased 3% from a year
ago:
- Transactional
revenues increased 2% over the year-ago quarter reflecting an
increase in client activity.
- Asset management
revenues increased 14% over the year-ago quarter reflecting higher
asset values.
- Net interest income
decreased 10% from the year-ago quarter driven by changes in
deposit mix, partially offset by higher interest rates.
Total Expenses:
- Compensation expense
as percent of net revenues increased to 46.9% primarily as a result
of higher compensable revenues.
- Provision for credit
losses decreased from a year ago as a result of reserve reductions
in certain asset classes driven by an improved macroeconomic
environment, partially offset by deteriorating conditions in the
commercial real estate sector.
- Non-compensation operating expenses as a percent of net
revenues increased to 13.8% primarily as a result of higher
litigation-related and insurance expenses, partially offset by
revenue growth and a decrease in the provision for credit losses
over the year-ago quarter.
| Summary
Results of Operations |
| (000s) |
|
4Q 2023 |
|
|
4Q 2022 |
|
|
Net revenues |
$766,028 |
|
$744,341 |
|
|
Transactional revenues |
|
169,471 |
|
|
165,557 |
|
|
Asset management |
|
330,498 |
|
|
289,445 |
|
|
Net interest income |
|
257,920 |
|
|
284,998 |
|
|
Investment banking |
|
4,562 |
|
|
4,814 |
|
|
Other income |
|
3,577 |
|
|
(473) |
|
|
Total expenses |
$464,668 |
|
$427,270 |
|
|
Compensation expense |
|
359,376 |
|
|
328,099 |
|
|
Provision for credit losses |
|
(37) |
|
|
6,028 |
|
|
Non-comp. opex |
|
105,329 |
|
|
93,143 |
|
|
Pre-tax net income |
$301,360 |
|
$317,071 |
|
|
Compensation ratio |
|
46.9% |
|
|
44.1% |
|
| Non-compensation ratio |
|
13.8% |
|
|
13.3% |
|
|
Pre-tax margin |
|
39.3% |
|
|
42.6% |
|
Institutional Group
Fourth Quarter Results
Institutional Group reported net revenues of
$359.3 million for the three months ended December 31, 2023
compared with $353.9 million during the fourth quarter of 2022.
Pre-tax net income was $7.8 million compared with $44.5 million in
the fourth quarter of 2022.
Highlights
Investment banking revenues decreased 8%
from a year ago:
- Advisory revenues of
$129.4 million decreased 23% from the year-ago quarter driven by
lower levels of completed advisory transactions.
- Equity capital
raising revenues increased 31% over the year-ago quarter driven by
higher volumes.
- Fixed income capital
raising revenues increased 45% over the year-ago quarter driven by
an increase in our public finance business.
Fixed income transactional revenues
increased 32% from a year ago:
- Fixed income
transactional revenues increased from the year-ago quarter driven
by improved market conditions and increased client activity.
Equity transactional revenues increased 9%
from a year ago:
- Equity transactional
revenues increased from the year-ago quarter driven by higher
trading gains.
Total Expenses:
- Compensation expense
as a percent of net revenues increased to 69.3% primarily driven by
lower compensable revenues.
- Non-compensation
operating expenses as a percent of net revenues increased to 28.5%
as a result of higher professional fees, travel-related expenses,
and occupancy costs, as well as continued investments in
technology.
|
Summary Results of Operations |
|
|
|
(000s) |
|
4Q 2023 |
|
|
4Q 2022 |
|
| Net
revenues |
$359,292 |
|
$353,882 |
|
|
Investment banking |
|
201,102 |
|
|
218,891 |
|
|
Advisory |
|
129,378 |
|
|
166,935 |
|
|
Equity capital raising |
|
31,510 |
|
|
24,127 |
|
|
Fixed income capital raising |
|
40,214 |
|
|
27,829 |
|
|
Fixed income transactional |
|
102,019 |
|
|
77,320 |
|
|
Equity transactional |
|
56,501 |
|
|
51,850 |
|
|
Other |
|
(330) |
|
|
5,821 |
|
|
Total expenses |
$351,521 |
|
$309,370 |
|
|
Compensation expense |
|
248,970 |
|
|
220,730 |
|
|
Non-comp. opex. |
|
102,551 |
|
|
88,640 |
|
|
Pre-tax net income |
$7,771 |
|
$44,512 |
|
|
Compensation ratio |
|
69.3% |
|
|
62.4% |
|
| Non-compensation ratio |
|
28.5% |
|
|
25.0% |
|
|
Pre-tax margin |
|
2.2% |
|
|
12.6% |
|
Global Wealth Management
Full Year Results
Global Wealth Management reported record net
revenues of $3.0 billion for the year ended December 31, 2023
compared with $2.8 billion in 2022. Pre-tax net income was $1.2
billion compared with $1.1 million in 2022.
Highlights
- Recruited 171
financial advisors during the year, including 76 experienced
employee advisors and 9 experienced independent advisors with total
trailing 12 month production of $69 million.
- Pre-tax margin of
40%, up from 38% in 2022.
Net revenues increased 8% from prior
year:
- Transactional
revenues decreased 2% from prior year reflecting a decrease in
client activity amid uncertainty in the markets.
- Asset management
revenues increased 3% from prior year reflecting higher asset
values.
- Net interest income
increased 24% from prior year primarily driven by higher interest
rates.
Total Expenses:
- Compensation expense
as a percent of net revenues decreased to 46.4% primarily as a
result of higher net interest income.
- Provision for credit
losses was primarily impacted by a slightly better macroeconomic
forecast, partially offset by a deterioration in certain asset
classes.
- Non-compensation
operating expenses as a percent of net revenues decreased to 13.7%
primarily as a result of revenue growth and expense
discipline.
|
Summary Results of Operations |
|
(000s) |
|
FY 2023 |
|
|
FY 2022 |
|
|
Net revenues |
$3,049,962 |
|
$2,825,866 |
|
|
Transactional revenues |
|
654,231 |
|
|
668,912 |
|
|
Asset management |
|
1,299,361 |
|
|
1,262,841 |
|
|
Net interest income |
|
1,086,628 |
|
|
879,780 |
|
|
Investment banking |
|
16,680 |
|
|
19,515 |
|
|
Other income |
|
(6,938) |
|
|
(5,182) |
|
|
Total expenses |
$1,834,140 |
|
$1,758,295 |
|
|
Compensation expense |
|
1,415,210 |
|
|
1,368,576 |
|
|
Provision for credit losses |
|
22,699 |
|
|
33,506 |
|
|
Non-comp. opex |
|
396,231 |
|
|
356,213 |
|
|
Pre-tax net income |
$1,215,822 |
|
$1,067,571 |
|
|
Compensation ratio |
|
46.4% |
|
|
48.4% |
|
| Non-compensation ratio |
|
13.7% |
|
|
13.8% |
|
|
Pre-tax margin |
|
39.9% |
|
|
37.8% |
|
Institutional Group
Full Year Results
Institutional Group reported net revenues of
$1.2 billion for the year ended December 31, 2023 compared with
$1.5 billion in 2022. Pre-tax net income was $2.1 million compared
with $254.1 million in 2022.
Highlights
Investment banking revenues decreased 25%
from prior year:
- Advisory revenues of
$465.6 million decreased 35% from prior year driven by lower levels
of completed advisory transactions.
- Equity capital
raising revenues increased 4% from prior year driven by higher
volumes.
- Fixed income capital
raising revenues increased 6% from prior year driven by an increase
in our corporate debt issuance business.
Fixed income transactional revenues
decreased 17% from prior year:
- Fixed income
transactional revenues decreased from prior year driven by declines
across most products as a result of lower volumes and lower market
volatility compared with elevated levels in the prior year,
partially offset by higher trading gains.
Equity transactional revenues remained
relatively consistent with prior year:
- Equity transactional
revenues increased slightly from prior year driven by an increase
trading gains.
Total Expenses:
- Compensation expense
as a percent of net revenues increased to 68.6% primarily as a
result of lower compensable revenues.
- Non-compensation
operating expenses as a percent of net revenues increased to 31.2%
as a result of lower net revenues, higher travel-related expenses,
and investments in technology, partially offset by lower investment
banking expenses.
|
Summary Results of Operations |
|
(000s) |
|
FY 2023 |
|
|
FY 2022 |
|
| Net
revenues |
$1,226,317 |
|
$1,536,017 |
|
|
Investment banking |
|
714,575 |
|
|
951,970 |
|
|
Advisory |
|
465,588 |
|
|
714,623 |
|
|
Equity capital raising |
|
107,340 |
|
|
103,437 |
|
|
Fixed income capital raising |
|
141,647 |
|
|
133,910 |
|
|
Fixed income transactional |
|
308,393 |
|
|
370,198 |
|
|
Equity transactional |
|
201,413 |
|
|
200,512 |
|
|
Other |
|
1,936 |
|
|
13,337 |
|
|
Total expenses |
$1,224,217 |
|
$1,281,885 |
|
|
Compensation expense |
|
841,671 |
|
|
929,606 |
|
|
Non-comp. opex. |
|
382,546 |
|
|
352,279 |
|
|
Pre-tax net income |
$2,100 |
|
$254,132 |
|
|
Compensation ratio |
|
68.6% |
|
|
60.5% |
|
| Non-compensation ratio |
|
31.2% |
|
|
23.0% |
|
|
Pre-tax margin |
|
0.2% |
|
|
16.5% |
|
Other Matters
Highlights
- Total assets increased $531.3
million, or 1%, over the year-ago quarter.
- The Board of Directors approved a
17% increase in the quarterly dividend to $0.42 per common share
starting in the first quarter of 2024.
- The Company repurchased $141.1
million of its outstanding common stock during the fourth quarter.
During 2023, the Company repurchased $441.3 million of its
outstanding common stock.
- Weighted average diluted shares
outstanding decreased as a result of the increase in share
repurchases over the comparable periods.
- The Board of Directors declared a
$0.36 quarterly dividend per share payable on December 15, 2023 to
common shareholders of record on December 1, 2023.
- The Board of Directors declared a
quarterly dividend on the outstanding shares of the Company’s
preferred stock payable on December 15, 2023 to shareholders of
record on December 1, 2023.
|
|
4Q 2023 |
4Q 2022 |
FY 2023 |
FY 2022 |
|
Common stock repurchases |
|
|
|
| Repurchases (000s)(8) |
$141,138 |
|
$75,164 |
|
$441,289 |
|
$105,831 |
|
|
Number of shares (000s)(8) |
|
2,345 |
|
|
1,252 |
|
|
7,175 |
|
|
1,757 |
|
| Average price |
$60.18 |
|
$60.06 |
|
$61.16 |
|
$64.50 |
|
| Period end shares (000s) |
|
101,062 |
|
|
105,348 |
|
|
101,062 |
|
|
105,348 |
|
|
Weighted average diluted shares outstanding (000s) |
|
111,330 |
|
|
117,223 |
|
|
113,453 |
|
|
117,540 |
|
|
Effective tax rate |
|
21.1% |
|
|
24.4% |
|
|
26.1% |
|
|
25.2% |
|
|
Stifel Financial
Corp.(9) |
| Tier 1 common capital
ratio |
|
14.2% |
|
|
14.6% |
|
|
|
| Tier 1 risk based capital
ratio |
|
17.2% |
|
|
17.6% |
|
|
|
| Tier 1 leverage capital
ratio |
|
10.5% |
|
|
11.1% |
|
|
|
| Tier 1 capital (MM) |
$3,916 |
|
$4,048 |
|
|
|
| Risk weighted assets (MM) |
$22,738 |
|
$23,027 |
|
|
|
| Average assets (MM) |
$37,451 |
|
$36,479 |
|
|
|
| Quarter
end assets (MM) |
$37,727 |
|
$37,196 |
|
|
|
|
Agency |
Rating |
Outlook |
|
|
| Fitch Ratings |
BBB+ |
Stable |
|
|
| S&P
Global Ratings |
BBB- |
Positive |
|
|
Conference Call Information
Stifel Financial Corp. will host its
fourth quarter 2023 financial results conference call on Wednesday,
January 24, 2024, 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 (866)
409-1555 and referencing conference ID 4717221. 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 and
Miller Buckfire business divisions; Keefe, Bruyette & Woods,
Inc.; and Stifel Independent Advisors, LLC; in Canada through
Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe
through Stifel Nicolaus Europe Limited. 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.
A financial summary follows. Financial,
statistical and business-related information, as well as
information regarding business and segment trends, is included in
the financial supplement. Both the earnings release and the
financial supplement are available online in the Investor Relations
section at www.stifel.com/investor-relations.
The information provided herein and in the
financial supplement, including information provided on the
Company’s earnings conference calls, may include certain non-GAAP
financial measures. The definition of such measures or
reconciliation of such measures to the comparable U.S. GAAP figures
are included in this earnings release and the financial supplement,
both of which are available online in the Investor Relations
section at www.stifel.com/investor-relations.
Cautionary Note Regarding 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. For information about the
risks and important factors that could affect the Company’s future
results, financial condition and liquidity, see “Risk Factors” in
Part I, Item 1A of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2022. Forward-looking statements speak only
as to the date they are made. The Company 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.
|
Summary Results of Operations (Unaudited) |
|
|
| |
Three Months Ended |
|
Year Ended |
|
(000s, except per share amounts) |
12/31/2023 |
12/31/2022 |
%Change |
9/30/2023 |
%Change |
12/31/2023 |
12/31/2022 |
%Change |
|
Revenues: |
|
|
|
|
|
|
|
|
| Commissions |
$173,614 |
$168,945 |
2.8 |
|
$165,075 |
5.2 |
|
$673,597 |
$710,589 |
(5.2) |
|
|
Principal transactions |
|
154,377 |
|
125,781 |
22.7 |
|
|
114,841 |
34.4 |
|
|
490,440 |
|
529,033 |
(7.3) |
|
| Investment banking |
|
205,664 |
|
223,706 |
(8.1) |
|
|
146,887 |
40.0 |
|
|
731,255 |
|
971,485 |
(24.7) |
|
| Asset management |
|
330,536 |
|
289,462 |
14.2 |
|
|
333,127 |
(0.8) |
|
|
1,299,496 |
|
1,262,919 |
2.9 |
|
| Other income |
|
9,687 |
|
11,862 |
(18.3) |
|
|
459 |
nm |
|
8,747 |
|
19,685 |
(55.6) |
|
| Operating
revenues |
|
873,878 |
|
819,756 |
6.6 |
|
|
760,389 |
14.9 |
|
|
3,203,535 |
|
3,493,711 |
(8.3) |
|
| Interest revenue |
|
516,213 |
|
416,731 |
23.9 |
|
|
505,198 |
2.2 |
|
|
1,955,745 |
|
1,099,115 |
77.9 |
|
| Total
revenues |
|
1,390,091 |
|
1,236,487 |
12.4 |
|
|
1,265,587 |
9.8 |
|
|
5,159,280 |
|
4,592,826 |
12.3 |
|
| Interest expense |
|
243,712 |
|
114,840 |
112.2 |
|
|
220,536 |
10.5 |
|
|
810,336 |
|
201,387 |
302.4 |
|
| Net
revenues |
|
1,146,379 |
|
1,121,647 |
2.2 |
|
|
1,045,051 |
9.7 |
|
|
4,348,944 |
|
4,391,439 |
(1.0) |
|
| Non-interest
expenses: |
|
|
|
|
|
|
|
|
| Compensation and benefits |
|
674,437 |
|
647,962 |
4.1 |
|
|
613,287 |
10.0 |
|
|
2,554,581 |
|
2,586,232 |
(1.2) |
|
| Non-compensation operating
expenses |
|
265,947 |
|
239,988 |
10.8 |
|
|
322,335 |
(17.5) |
|
|
1,087,671 |
|
920,091 |
18.2 |
|
| Total non-interest
expenses |
|
940,384 |
|
887,950 |
5.9 |
|
|
935,622 |
0.5 |
|
|
3,642,252 |
|
3,506,323 |
3.9 |
|
| Income before income
taxes |
|
205,995 |
|
233,697 |
(11.9) |
|
|
109,429 |
88.2 |
|
|
706,692 |
|
885,116 |
(20.2) |
|
| Provision for income
taxes |
|
43,511 |
|
57,076 |
(23.8) |
|
|
41,268 |
5.4 |
|
|
184,156 |
|
222,961 |
(17.4) |
|
| Net
income |
|
162,484 |
|
176,621 |
(8.0) |
|
|
68,161 |
138.4 |
|
|
522,536 |
|
662,155 |
(21.1) |
|
| Preferred dividends |
|
9,320 |
|
9,320 |
0.0 |
|
|
9,321 |
(0.0) |
|
|
37,281 |
|
37,281 |
0.0 |
|
| Net income available
to common shareholders |
$153,164 |
$167,301 |
(8.5) |
|
$58,840 |
160.3 |
|
$485,255 |
$624,874 |
(22.3) |
|
| Earnings per common
share: |
|
|
|
|
|
|
|
|
| Basic |
$1.47 |
$1.54 |
(4.5) |
|
$0.55 |
167.3 |
|
$4.55 |
$5.74 |
(20.7) |
|
| Diluted |
$1.38 |
$1.43 |
(3.5) |
|
$0.52 |
165.4 |
|
$4.28 |
$5.32 |
(19.5) |
|
| Cash dividends
declared per common share |
$0.36 |
$0.30 |
20.0 |
|
$0.36 |
— |
|
$1.44 |
$1.20 |
20.0 |
|
| Weighted
average number of common shares outstanding: |
|
|
|
|
|
| Basic |
|
103,934 |
|
108,344 |
(4.1) |
|
|
106,068 |
(2.0) |
|
|
106,661 |
|
108,848 |
(2.0) |
|
|
Diluted |
|
111,330 |
|
117,223 |
(5.0) |
|
|
113,195 |
(1.6) |
|
|
113,453 |
|
117,540 |
(3.5) |
|
|
Non-GAAP Financial
Measures(10) |
|
|
| |
Three Months Ended |
Year Ended |
| (000s, except per share
amounts) |
12/31/2023 |
12/31/2022 |
12/31/2023 |
12/31/2022 |
| GAAP net
income |
$162,484 |
|
$176,621 |
|
$522,536 |
|
$662,155 |
|
|
Preferred dividend |
|
9,320 |
|
|
9,320 |
|
|
37,281 |
|
|
37,281 |
|
| Net income available
to common shareholders |
|
153,164 |
|
|
167,301 |
|
|
485,255 |
|
|
624,874 |
|
| |
|
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
| Merger-related(11) |
|
16,921 |
|
|
23,497 |
|
|
63,222 |
|
|
67,099 |
|
| Provision for income
taxes(12) |
|
(3,498) |
|
|
(5,923) |
|
|
(16,953) |
|
|
(16,902) |
|
| Total non-GAAP
adjustments |
|
13,423 |
|
|
17,574 |
|
|
46,269 |
|
|
50,197 |
|
| Non-GAAP net income
available to common shareholders |
$166,587 |
|
$184,875 |
|
$531,524 |
|
$675,071 |
|
| |
|
|
|
|
| Weighted average diluted
shares outstanding |
|
111,330 |
|
|
117,223 |
|
|
113,453 |
|
|
117,540 |
|
| |
|
|
|
|
| GAAP earnings per diluted
common share |
$1.46 |
|
$1,51 |
|
$4.61 |
|
$5,63 |
|
| Non-GAAP adjustments |
|
0,12 |
|
|
0,15 |
|
|
0,40 |
|
|
0,43 |
|
| Non-GAAP earnings per diluted
common share |
$1.58 |
|
$1,66 |
|
$5.01 |
|
$6,06 |
|
|
|
|
|
|
|
| GAAP earnings per diluted
common share available to common shareholders |
$1.38 |
|
$1,43 |
|
$4.28 |
|
$5,32 |
|
| Non-GAAP adjustments |
|
0,12 |
|
|
0,15 |
|
|
0,40 |
|
|
0,42 |
|
|
Non-GAAP earnings per diluted common share available to common
shareholders |
$1.50 |
|
$1,58 |
|
$4.68 |
|
$5,74 |
|
|
GAAP to Non-GAAP Reconciliation
(10) |
| |
|
|
| |
Three Months Ended |
Year Ended |
| (000s) |
12/31/2023 |
12/31/2022 |
12/31/2023 |
12/31/2022 |
| GAAP compensation and
benefits |
$674,437 |
|
$647,962 |
|
$2,554,581 |
|
$2,586,232 |
|
|
As a percentage of net revenues |
|
58.8% |
|
|
57.8% |
|
|
58.7% |
|
|
58.9% |
|
| Non-GAAP adjustments: |
|
|
|
|
| Merger-related (11) |
|
(9,203) |
|
|
(14,570) |
|
|
(32,150) |
|
|
(39,114) |
|
| Non-GAAP compensation
and benefits |
$665,234 |
|
$633,392 |
|
$2,522,431 |
|
$2,547,118 |
|
| As a percentage of non-GAAP
net revenues |
|
58.0% |
|
|
56.5% |
|
|
58.0% |
|
|
58.0% |
|
| |
|
|
|
|
| GAAP non-compensation
expenses |
$265,947 |
|
$239,988 |
|
$1,087,671 |
|
$920,091 |
|
| As a percentage of net
revenues |
|
23.2% |
|
|
21.4% |
|
|
25.1% |
|
|
20.9% |
|
| Non-GAAP adjustments: |
|
|
|
|
| Merger-related (11) |
|
(7,678) |
|
|
(8,931) |
|
|
(31,058) |
|
|
(27,934) |
|
| Non-GAAP
non-compensation expenses |
$258,269 |
|
$231,057 |
|
$1,056,613 |
|
$892,157 |
|
| As a percentage of non-GAAP
net revenues |
|
22.6% |
|
|
20.6% |
|
|
24.3% |
|
|
20.3% |
|
|
Total merger-related expenses |
$16,921 |
|
$23,497 |
|
$63,222 |
|
$67,099 |
|
Footnotes
(1) Represents available to common
shareholders.
(2) Reconciliations of the Company’s GAAP
results to these non-GAAP measures are discussed within and under
“Non-GAAP Financial Measures” and “GAAP to Non-GAAP
Reconciliation.”
(3) Non-GAAP pre-tax margin is calculated by
adding total merger-related expenses (non-GAAP adjustments) and
dividing it by non-GAAP net revenues. See “Non-GAAP Financial
Measures” and “GAAP to Non-GAAP Reconciliation.”
(4) Return on average common equity
(“ROCE”) is calculated by dividing annualized net income applicable
to common shareholders by average common shareholders’ equity or,
in the case of non-GAAP ROCE, calculated by dividing non-GAAP net
income applicable to commons shareholders by average common
shareholders’ equity.
(5) Return on average tangible common equity
(“ROTCE”) is calculated by dividing annualized net income
applicable to common shareholders by average tangible shareholders’
equity or, in the case of non-GAAP ROTCE, calculated by dividing
non-GAAP net income applicable to common shareholders by average
tangible common equity. Tangible common equity, also a non-GAAP
financial measure, equals total common shareholders’ equity less
goodwill and identifiable intangible assets and the deferred taxes
on goodwill and intangible assets. Average deferred taxes on
goodwill and intangible assets was $71.1 million and $60.4 million
as of December 31, 2023 and 2022, respectively.
(6) Includes loans held for sale.
(7) Tangible book value per common share
represents shareholders’ equity (excluding preferred stock) divided
by period end common shares outstanding. Tangible common
shareholders’ equity equals total common shareholders’ equity less
goodwill and identifiable intangible assets and the deferred taxes
on goodwill and intangible assets.
(8) Common stock repurchases for the years ended
December 31, 2023 and 2022 exclude $77.0 million (1.3 million
shares) and $86.6 million (1.2 million shares), respectively, of
net-share settlements in connection with the Company’s equity
compensation plan.
(9) Capital ratios are estimates as time of the
Company’s earnings release, January 24, 2024.
(10) The Company prepares its Consolidated
Financial Statements using accounting principles generally accepted
in the United States (U.S. GAAP). The Company may disclose certain
“non-GAAP financial measures” in the course of its earnings
releases, earnings conference calls, financial presentations and
otherwise. The Securities and Exchange Commission defines a
“non-GAAP financial measure” as a numerical measure of historical
or future financial performance, financial position, or cash flows
that is subject to adjustments that effectively exclude, or
include, amounts from the most directly comparable measure
calculated and presented in accordance with U.S. GAAP. Non-GAAP
financial measures disclosed by the Company are provided as
additional information to analysts, investors and other
stakeholders in order to provide them with greater transparency
about, or an alternative method for assessing the Company’s
financial condition or operating results. These measures are not in
accordance with, or a substitute for U.S. GAAP, and may be
different from or inconsistent with non-GAAP financial measures
used by other companies. Whenever the Company refers to a non-GAAP
financial measure, it will also define it or present the most
directly comparable financial measure calculated and presented in
accordance with U.S. GAAP, along with a reconciliation of the
differences between the non-GAAP financial measure it references
and such comparable U.S. GAAP financial measure.
(11) Primarily related to charges attributable
to integration-related activities, signing bonuses, amortization of
restricted stock awards, debentures, and promissory notes issued as
retention, additional earn-out expense, and amortization of
intangible assets acquired. These costs were directly related to
acquisitions of certain businesses and are not representative of
the costs of running the Company’s on-going business.
(12) Primarily represents the Company’s
effective tax rate for the period applied to the non-GAAP
adjustments.
Media Contact: Neil Shapiro (212) 271-3447 |
Investor Contact: Joel Jeffrey (212) 271- 3610 |
www.stifel.com/investor-relations
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