STIFEL FINANCIAL CORP [SF-PC] Filings

10-Q 1 sf-20230630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2023


☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 001-09305

STIFEL FINANCIAL CORP.

(Exact name of registrant as specified in its charter)


Delaware		43-1273600
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

501 North Broadway, St. Louis, Missouri 63102-2188

(Address of principal executive offices and zip code)

(314) 342-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class/ Trading Symbol	Name of Each Exchange on Which Registered	Shares or principal amount outstanding - August 3, 2023
Common Stock, $0.15 par value per share (SF)	New York Stock Exchange		104,448,600
Depository Shares, each representing 1/1,000th interest in a share of 6.25% Non-Cumulative Preferred Stock, Series B (SF-PB)	New York Stock Exchange		6,400
Depository Shares, each representing 1/1,000th interest in a share of 6.125% Non-Cumulative Preferred Stock, Series C (SF-PC)	New York Stock Exchange		9,000
Depository Shares, each representing 1/1,000th interest in a share of 4.50% Non-Cumulative Preferred Stock, Series D (SF-PD)	New York Stock Exchange		12,000
5.20% Senior Notes due 2047 (SFB)	New York Stock Exchange	$	225,000,000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (“the Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐


Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

STIFEL FINANCIAL CORP.

Form 10-Q

TABLE OF CONTENTS


PART I – FINANCIAL INFORMATION
Item 1. Financial Statements		3
Consolidated Statements of Financial Condition as of June 30, 2023 (unaudited) and December 31, 2022		3
Consolidated Statements of Operations for the three and six months ended June 30, 2023 and June 30, 2022 (unaudited)		4
Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and June 30, 2022 (unaudited)		5
Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended June 30, 2023 and June 30, 2022 (unaudited)		6
Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and June 30, 2022 (unaudited)		8
Notes to Consolidated Financial Statements (unaudited)		10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		47
Item 3. Quantitative and Qualitative Disclosures About Market Risk		72
Item 4. Controls and Procedures		75

PART II – OTHER INFORMATION
Item 1. Legal Proceedings		76
Item 1A. Risk Factors		76
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		76
Item 3. Defaults Upon Senior Securities		76
Item 4. Mine Safety Disclosures		76
Item 5. Other Information		76
Item 6. Exhibits		77
Signatures		78

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

STIFEL FINANCIAL CORP.

Consolidated Statements of Financial Condition


	June 30, 2023			December 31, 2022
(in thousands, except share and per share amounts)	(Unaudited)
Assets
Cash and cash equivalents	$	1,907,926		$	2,199,985
Cash segregated for regulatory purposes		21,372			29,017
Receivables:
Brokerage clients, net		894,900			924,385
Brokers, dealers, and clearing organizations		304,433			418,091
Securities purchased under agreements to resell		542,582			348,162
Financial instruments owned, at fair value		1,144,898			731,752
Available-for-sale securities, at fair value		1,582,418			1,636,041
Held-to-maturity securities, at amortized cost		5,951,482			5,990,451
Loans:
Held for investment, net		20,338,475			20,465,092
Held for sale, at lower of cost or market		224,017			156,912
Investments, at fair value		100,779			99,376
Fixed assets, net		198,054			200,043
Operating lease right-of-use assets, net		732,150			775,949
Goodwill		1,382,412			1,326,548
Intangible assets, net		127,019			130,589
Loans and advances to financial advisors and other employees, net		663,987			654,112
Deferred tax assets, net		162,411			159,207
Other assets		1,018,924			950,412
Total assets	$	37,298,239		$	37,196,124
Liabilities
Payables:
Brokerage clients	$	880,211		$	770,336
Brokers, dealers, and clearing organizations		188,881			94,954
Drafts		86,148			102,212
Securities sold under agreements to repurchase		318,321			212,011
Bank deposits		27,004,807			27,117,111
Financial instruments sold, but not yet purchased, at fair value		665,487			454,817
Accrued compensation		399,518			677,376
Accounts payable and accrued expenses		1,236,788			1,264,282
Senior notes		1,115,091			1,114,554
Debentures to Stifel Financial Capital Trusts		60,000			60,000
Total liabilities		31,955,252			31,867,653
Equity
Preferred stock - $1 par value; authorized 3,000,000 shares; issued 27,400 shares		685,000			685,000
Common stock - $0.15 par value; authorized 194,000,000 shares; issued 111,662,186 and 111,662,034 shares, respectively		16,749			16,749
Additional paid-in-capital		1,856,578			1,928,069
Retained earnings		3,286,777			3,169,095
Accumulated other comprehensive loss		(104,515	)		(117,960	)
Treasury stock, at cost, 6,773,134 and 6,314,033 shares, respectively		(397,602	)		(352,482	)
Total equity		5,342,987			5,328,471
Total liabilities and equity	$	37,298,239		$	37,196,124

See accompanying Notes to Consolidated Financial Statements.

STIFEL FINANCIAL CORP.

Consolidated Statements of Operations

(Unaudited)


	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands, except per share amounts)	2023		2022			2023			2022
Revenues:
Commissions	$	165,358	$	186,681		$	334,908		$	382,590
Principal transactions		105,700		125,603			221,222			284,873
Investment banking		166,825		271,075			378,704			525,921
Asset management		320,264		331,264			635,833			672,900
Interest		482,770		212,754			934,334			378,189
Other income		894		(1,917	)		(1,399	)		6,971
Total revenues		1,241,811		1,125,460			2,503,602			2,251,444
Interest expense		191,090		17,334			346,088			26,791
Net revenues		1,050,721		1,108,126			2,157,514			2,224,653
Non-interest expenses:
Compensation and benefits		615,667		652,709			1,266,857			1,326,400
Occupancy and equipment rental		84,604		78,251			166,744			155,277
Communications and office supplies		44,969		43,645			91,105			86,101
Commissions and floor brokerage		14,112		15,106			28,552			30,993
Provision for credit losses		7,824		12,785			12,744			21,025
Other operating expenses		102,160		87,089			200,244			159,207
Total non-interest expenses		869,336		889,585			1,766,246			1,779,003
Income from operations before income tax expense		181,385		218,541			391,268			445,650
Provision for income taxes		47,033		57,725			99,377			111,285
Net income		134,352		160,816			291,891			334,365
Preferred dividends		9,320		9,321			18,640			18,641
Net income available to common shareholders	$	125,032	$	151,495		$	273,251		$	315,724

Earnings per common share:
Basic	$	1.16	$	1.39		$	2.52		$	2.89
Diluted	$	1.10	$	1.29		$	2.38		$	2.68

Cash dividends declared per common share	$	0.36	$	0.30		$	0.72		$	0.60

Weighted-average number of common shares outstanding:
Basic		107,944		109,083			108,360			109,144
Diluted		113,864		117,400			114,658			117,838

See accompanying Notes to Consolidated Financial Statements.

STIFEL FINANCIAL CORP.

Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands)	2023			2022		2023		2022
Net income	$	134,352		$	160,816	$	291,891	$	334,365
Other comprehensive income/(loss), net of tax: (1)
Changes in unrealized gains/(losses) on available-for-sale securities (2)		(13,651	)		(

STIFEL FINANCIAL CORP [SF-PC] Filings
STIFEL FINANCIAL CORP [SF] Filings
STIFEL FINANCIAL CORP [SF-PB] Filings
STIFEL FINANCIAL CORP [SF-PD] Filings
STIFEL FINANCIAL CORP [SFB] Filings
10-Q	[2023-08-09]
10-Q	[2023-05-04]
10-K	[2023-02-17]
10-Q	[2022-11-09]
10-Q	[2022-08-04]
10-Q	[2022-05-05]
10-K	[2022-02-18]
10-Q	[2021-11-04]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-02-19]
10-Q	[2020-11-06]
10-Q	[2020-08-06]
10-Q	[2020-05-07]
10-K	[2020-02-19]
10-Q	[2019-11-06]
10-Q	[2019-08-07]
10-Q	[2019-05-08]
10-K	[2019-02-20]
10-Q	[2018-11-06]
10-Q	[2018-08-07]
10-Q	[2018-05-07]
10-K	[2018-02-26]
10-Q	[2017-11-08]
10-Q	[2017-08-08]
10-Q	[2017-05-05]
10-K	[2017-02-23]
10-Q	[2016-11-09]
10-Q	[2016-08-08]
10-Q	[2016-05-10]
10-K	[2016-03-01]
10-Q	[2015-11-06]
10-Q	[2015-08-10]
10-Q	[2015-05-11]
10-K	[2015-03-02]
10-Q	[2014-11-10]
10-Q	[2014-08-11]
10-Q	[2014-05-12]
10-K	[2014-03-03]
10-Q	[2013-11-12]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-01]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-02-28]

STIFEL FINANCIAL CORP [SF-PC] Filings

STIFEL FINANCIAL CORP [SF] Filings

STIFEL FINANCIAL CORP [SF-PB] Filings

STIFEL FINANCIAL CORP [SF-PD] Filings

STIFEL FINANCIAL CORP [SFB] Filings