SOURCE: Stifel

Stifel

February 24, 2014 16:02 ET

Stifel Reports Fourth Quarter and Full-Year 2013 Financial Results

18th Consecutive Year of Record Net Revenues; Record Revenues & Pre-Tax Operating Income in Both Global Wealth and Institutional Group for 2013

ST. LOUIS, MO--(Marketwired - Feb 24, 2014) -  Stifel Financial Corp. (NYSE: SF)

  • Record net revenues of $562.5 million, increased 37% compared with the year-ago quarter.
  • Net income from continuing operations of $52.1 million, or $0.69 per diluted common share.
  • Non-GAAP net income from continuing operations of $59.8 million, or $0.79 per diluted share.

Stifel Financial Corp. (NYSE: SF) today reported net income from continuing operations of $52.1 million, or $0.69 per diluted common share on record net revenues of $562.5 million for the three months ended December 31, 2013, compared with net income from continuing operations of $43.3 million, or $0.69 per diluted common share, on net revenues of $411.3 million for the fourth quarter of 2012.

For the three months ended December 31, 2013, the Company reported non-GAAP net income from continuing operations of $59.8 million, or $0.79 per diluted common share. These non-GAAP results exclude merger-related expenses associated with the acquisitions of the Knight Capital Fixed Income business, KBW, and Miller Buckfire for a total of $7.7 million (after-tax). A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

   
Summary Results of Operations (Unaudited)  
    Three Months Ended     Year Ended  
(in 000s)   12/31/13     12/31/12     % Change     9/30/13     % Change     12/31/13     12/31/12     % Change  
  Net revenues   $ 562,526     $ 411,283     36.8     $ 478,639     17.5     $ 1,973,446     $ 1,594,113     23.8  
  Net income from continuing operations   $ 52,126     $ 43,284     20.4     $ 74,929     (30.4 )   $ 172,907     $ 145,296     19.0  
  Net income   $ 48,269     $ 39,954     20.8     $ 69,690     (40.8 )   $ 162,013     $ 138,573     16.9  
  Non-GAAP net income from continuing operations1   $ 59,819     $ 43,284     38.2     $ 39,649     50.9     $ 184,658     $ 145,296     27.1  
Earnings per basic common share:                                                          
  Income from continuing operations   $ 0.82     $ 0.80     2.5     $ 1.16     (29.3 )   $ 2.67     $ 2.71     (1.5 )
  Loss from discontinued operations     (0.06 )     (0.06 )   -       (0.08 )   (25.0 )     (0.17 )     (0.12 )   41.7  
  Earnings per basic common share   $ 0.76     $ 0.74     2.5     $ 1.08     (29.6 )   $ 2.50     $ 2.59     (3.5 )
                                                           
Earnings per diluted common share:                                                          
  Income from continuing operations   $ 0.69     $ 0.69     -     $ 1.00     (31.0 )   $ 2.35     $ 2.31     1.7  
  Loss from discontinued operations     (0.05 )     (0.06 )   (16.7 )     (0.07 )   (28.6 )     (0.15 )     (0.11 )   36.4  
  Earnings per diluted common share   $ 0.64     $ 0.63     1.6     $ 0.93     (31.2 )   $ 2.20     $ 2.20     -  
  Non-GAAP net income from continuing operations1   $ 0.79     $ 0.69     14.5     $ 0.53     49.1     $ 2.51     $ 2.31     8.7  
Weighted average number of common shares outstanding:                                                          
  Basic     64,859       53,835     20.5       64,706     0.2       63,568       53,563     18.7  
  Diluted     75,495       63,301     19.3       75,191     0.4       73,504       62,937     16.8  
                                                             
                                                             

Full-Year 2013 Results

  • Record net revenues of $1.97 billion, increased 24% compared with the year-ago period.
  • Net income from continuing operations of $172.9 million, or $2.35 per diluted common share. 
  • Non-GAAP net income of $184.7 million, or $2.51 per diluted common share.

For the year ended December 31, 2013, the Company reported net income from continuing operations of $172.9 million, or $2.35 per diluted common share on record net revenues of $1.97 billion, compared with net income from continuing operations of $145.3 million, or $2.31 per diluted common share, on net revenues of $1.59 billion in 2012. For the year ended December 31, 2013, the Company reported non-GAAP net income from continuing operations of $184.7 million, or $2.51 per diluted common share. A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

Chairman's Comments

Ronald J. Kruszewski, Chairman, President and CEO of Stifel said, "We are very pleased to post our 18th consecutive year of record net revenues. This speaks to the dedication of our over 5,800 professionals, as well as to our balanced business model. Non-GAAP net income from continuing operations for the year improved over the prior year as a result of both better market conditions and the benefits of our recent acquisitions."

Kruszewski continued, "Looking forward, we will continue to take advantage of opportunities in the marketplace that add to shareholder value."

Business Segment Results

   
Summary Segment Results (Unaudited)  
    Three Months Ended     Year Ended  
(in 000s)   12/31/13     12/31/12     % Change   9/30/13     % Change     12/31/13     12/31/12     % Change  
Net revenues:                                                        
  Global Wealth Management   $ 292,836     $ 253,775     15.4   $ 274,669     6.6     $ 1,117,179     $ 991,597     12.7  
  Institutional Group     267,282       160,693     66.3     205,132     30.3       861,158       604,654     42.4  
  Other     2,408       (3,185 )   175.6     (1,162 )   (175.6 )     (4,891 )     (2,138 )   (128.7 )
    $ 562,526     $ 411,283     36.8   $ 478,639     17.5     $ 1,973,446     $ 1,594,113     23.8  
Operating contribution: (2)                                                        
  Global Wealth Management   $ 79,022     $ 68,737     15.0   $ 72,128     9.6     $ 299,572     $ 266,669     12.3  
  Institutional Group     48,590       21,678     124.1     34,986     38.9       142,889       101,487     40.8  
  Other     (37,184 )     (30,064 )   23.7     (41,669 )   (10.8 )     (147,377 )     (138,409 )   6.5  
    $ 90,428     $ 60,351     49.8   $ 65,443     38.2     $ 295,084     $ 229,747     28.4  
                                                         
As a percentage of net revenues:                                                        
  Compensation and benefits                                                        
    Global Wealth Management     57.4       57.7           58.2             58.1       58.2        
    Institutional Group     62.0       65.4           58.4             60.9       62.9        
  Non-comp. operating expenses                                                        
    Global Wealth Management     15.6       15.2           15.5             15.1       14.9        
    Institutional Group     19.8       21.1           24.5             22.5       20.3        
  Income before income taxes                                                        
    Global Wealth Management     27.0       27.1           26.3             26.8       26.9        
    Institutional Group     18.2       13.5           17.1             16.6       16.8        
    Other     (6.5 )     (7.3 )         (8.7 )           (7.4 )     (8.7 )      
      16.0       14.7           13.6             14.9       14.4        
                                                         
                                                         

Fourth Quarter 2013

Global Wealth Management

For the quarter ended December 31, 2013, the Global Wealth Management segment generated record pre-tax operating income of $79.0 million, compared with $68.7 million in the fourth quarter of 2012 and $72.1 million in the third quarter of 2013. Net revenues for the quarter were a record $292.8 million, compared with $253.8 million in the fourth quarter of 2012, and $274.7 million in the third quarter of 2013. The increase in net revenues from the fourth quarter of 2012 is primarily attributable to (1) growth in asset management and service fees; (2) an increase in commission revenues; and (3) increased net interest revenues.

  • The Private Client Group reported net revenues of $256.1 million, an 11% increase compared with the fourth quarter of 2012 and a 3% increase compared with the third quarter of 2013.
  • Stifel Bank reported record net revenues of $36.7 million, a 63% increase compared with the fourth quarter of 2012 and a 40% increase compared with the third quarter of 2013.

Institutional Group

For the quarter ended December 31, 2013, the Institutional Group segment generated record pre-tax operating income of $48.6 million, compared with $21.7 million in the fourth quarter of 2012 and $35.0 million in the third quarter of 2013. Net revenues for the quarter were a record $267.3 million, compared with $160.7 million in the fourth quarter of 2012 and $205.1 million in the third quarter of 2013. The increase in net revenues from the fourth quarter of 2012 was primarily attributable to (1) an increase in advisory fees; (2) an increase in equity capital raising revenues; and (3) higher institutional brokerage revenues, offset by a reduction in other revenues as a result of gains recorded on the investment in Knight Capital during the fourth quarter of 2012. Net revenue growth, on a year-over-year basis, is attributable to the acquisitions of KBW and the Knight Capital Fixed Income business and, to a lesser extent, Miller Buckfire.

Institutional brokerage revenues were $111.3 million, a 35% increase compared with the fourth quarter of 2012 and a 1% increase compared with the third quarter of 2013.

  • Equity brokerage revenues were $60.2 million, a 56% increase compared with the fourth quarter of 2012 and a 3% increase compared with the third quarter of 2013.
  • Fixed income brokerage revenues were $51.1 million, a 17% increase compared with the fourth quarter of 2012 and a 1% decrease compared with the third quarter of 2013.

Investment banking revenues were a record $149.3 million, a 140% increase compared with the fourth quarter of 2012 and a 79% increase compared with the third quarter of 2013.

  • Equity capital raising revenues were $46.6 million, a 175% increase compared with the fourth quarter of 2012 and a 52% increase compared with the third quarter of 2013.
  • Fixed income capital raising revenues were $14.7 million, a 21% decrease compared with the fourth quarter of 2012 and a 9% increase compared with the third quarter of 2013.
  • Advisory fee revenues were $88.0 million, a 231% increase compared with the fourth quarter of 2012 and a 125% increase compared with the third quarter of 2013.

Consolidated Compensation and Benefits Expenses

For the quarter ended December 31, 2013, compensation and benefits expenses were $353.2 million, which included merger-related expenses of $5.9 million, compared with $258.1 million in the fourth quarter of 2012 and $326.0 million in the third quarter of 2013, which included merger-related expenses of $28.6 million.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues was 61.5% in the fourth quarter of 2013, compared with 62.8% in the fourth quarter of 2012 and 62.0% in the third quarter of 2013. Transition pay, which primarily consists of amortization of retention awards, signing bonuses, and upfront notes, as a percentage of net revenues was 4.0% in the fourth quarter of 2013, compared with 5.0% in the fourth quarter of 2012 and 4.6% in the third quarter of 2013.

Consolidated Non-Compensation Operating Expenses

For the quarter ended December 31, 2013, non-compensation operating expenses were $131.3 million, which included $4.3 million of merger-related expenses, compared with $92.8 million in the fourth quarter of 2012 and $121.6 million in the third quarter of 2013, which included $4.8 million in merger-related expenses.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended December 31, 2013 was 22.5%, compared with 22.6% in the fourth quarter of 2012 and 24.4% in the third quarter of 2013.

Provision for Income Taxes

The effective income tax rate for the quarter ended December 31, 2013 was 33.9% compared with 28.3% in the fourth quarter of 2012.

Full-Year 2013

Global Wealth Management

For the year ended December 31, 2013, the Global Wealth Management segment generated record pre-tax operating income of $299.6 million, compared with $266.7 million in 2012. Net revenues for the year were a record $1.11 billion, compared with $991.6 million in 2012. The increase in net revenues from 2012 is primarily attributable to (1) an increase in commission revenues; (2) growth in asset management and service fees; and (3) increased net interest revenues.

  • The Private Client Group reported record net revenues of $1.0 billion, a 10% increase compared to $911.7 million in 2012.
  • Stifel Bank reported record net revenues of $112.1 million, a 40% increase compared to $79.9 million in 2012.

Institutional Group

For the year ended December 31, 2013, the Institutional Group segment generated record pre-tax operating income of $142.9 million, compared with $101.5 million in 2012. Net revenues for the year were a record $861.2 million, compared with $604.7 million in 2012. The increase in net revenues from 2012 was primarily attributable to (1) an increase in advisory fees; (2) an increase in equity capital raising revenues; and (3) higher equity institutional brokerage revenues, offset by a reduction in other revenues as a result of gains recorded on the investment in Knight Capital during 2012. Net revenue growth, on a year-over-year basis, is attributable to the acquisitions of KBW and the Knight Capital Fixed Income business and, to a lesser extent, Miller Buckfire.

Institutional brokerage revenues were $421.6 million, a 30% increase compared to $323.5 million in 2012.

  • Equity brokerage revenues were $232.4 million, a 54% increase compared to $151.3 million in 2012.
  • Fixed income brokerage revenues were $189.2 million, a 10% increase compared to $172.2 million in 2012.

Investment banking revenues were a record $402.7 million, a 70% increase compared to $236.4 million in 2012.

  • Equity capital raising revenues were $142.6 million, a 74% increase compared to $81.8 million in 2012.
  • Fixed income capital raising revenues were $58.1 million, a 2% decrease compared to $59.0 million in 2012.
  • Advisory fee revenues were $201.9 million, a 111% increase compared with to $95.5 million in 2012.

Consolidated Compensation and Benefits Expenses

For the year ended December 31, 2013, compensation and benefits expenses were $1.3 billion, which included merger-related expenses of $74.4 million, compared to $1.0 billion in 2012.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues for the year ended December 31, 2013 was 62.5%, compared with 63.4% in 2012. Transition pay as a percentage of net revenues for the year ended December 31, 2013 was 4.4%, compared with 4.6% in 2012.

Consolidated Non-Compensation Operating Expenses

For the year ended December 31, 2013, non-compensation operating expenses were $476.8 million, which included $30.6 million of merger-related expenses, compared with $354.2 million in 2012.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the year ended December 31, 2013 was 22.6%, compared with 22.2% in 2012.

Provision for Income Taxes

The effective income tax rate for the year ended December 31, 2013 was 6.7% compared with 36.8% in the 2012. The effective rate in 2013 reflects a $58.2 million U.S. tax benefit arising out of its investment in SN Canada in connection with discontinuing the business operations during 2013.

Assets and Capital

Assets

  • Assets increased 29% to $9.0 billion as of December 31, 2013 from $7.0 billion as of December 30, 2012. The increase is primarily attributable to growth of Stifel Bank, the Company's bank subsidiary, which as of December 31, 2013 has grown its assets to $5.0 billion from $3.7 billion as of December 31, 2012.
  • At December 31, 2013, the Company's Level 3 assets of $232.0 million, or 3% of total assets, consisted of $125.7 million of auction rate securities and $106.2 million of private equity, municipal securities, and other fixed income securities. The Company's Level 3 assets as a percentage of total assets measured at fair value was 8% at December 31, 2013.
  • Non-performing assets as a percentage of total assets as of December 31, 2013 was 0.03%.

Capital

  • The Company's Tier 1 leverage capital ratio was 15.4% at December 31, 2013 and Tier 1 risk-based capital ratio was 26.7% at December 31, 2013.
  • At December 31, 2013, book value per common share was $32.30 based on 63.7 million shares outstanding.
  • Stockholders' equity as of December 31, 2013 increased $564.2 million, or 38%, to $2.1 billion from $1.5 billion as of December 31, 2012.

Non-GAAP Financial Measures

The Company utilized non-GAAP calculations of presented net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share as additional measures to aid in understanding and analyzing the Company's financial results for the three and twelve months ended December 31, 2013. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company's core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company's results in the current period to those in prior and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance. These non-GAAP amounts exclude compensation expense related to the granting of stock awards with no continuing service requirement issued as retention as part of the acquisitions of the Knight Capital Fixed Income business and KBW and certain compensation and non-compensation operating expenses associated with the acquisitions of KBW, Miller Buckfire, the Knight Capital Fixed Income business, and the U.S. tax benefit arising out of the Company's investment in SN Canada.

A limitation of utilizing these non-GAAP measures of net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expenses ratios, pre-tax margin and diluted earnings per share is that the GAAP accounting effects of these merger-related charges do in fact reflect the underlying financial results of the Company's business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the Company believes that GAAP measures of net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share and the same respective non-GAAP measures of the Company's financial performance should be considered together.

The following table provides details with respect to reconciling net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share on a GAAP basis for the three and twelve months ended December 31, 2013 to the aforementioned expenses on a non-GAAP basis for the same period.

         
    Three Months Ended December 31, 2013   Year Ended December 31, 2013
(in 000s, except per share amounts)   Non-GAAP   Non-Core     GAAP   Non-GAAP   Non-Core     GAAP
Net revenues   $ 564,681   $ (2,155 )   $ 562,526   $ 1,978,340   $ (4,894 )   $ 1,973,446
                                         
Non-interest expenses:                                        
  Compensation and benefits     347,263     5,944       353,207     1,236,991     74,395       1,311,386
  Non-compensation operating expenses     126,990     4,340       131,330     446,265     30,566       476,831
    Total non-interest expenses     474,253     10,284       484,537     1,683,256     104,961       1,788,217
  Income from continuing operations before income taxes     90,428     (12,439 )     77,989     295,084     (109,855 )     185,229
  Provision for income taxes     30,609     (4,746 )     25,863     110,426     (98,104 )     12,322
  Net income from continuing operations   $ 59,819   $ (7,693 )   $ 48,269   $ 184,658   $ (11,751 )   $ 172,907
                                         
Earnings per common share:                                        
  Diluted   $ 0.79   $ (0.10 )   $ 0.69   $ 2.51   $ (0.16 )   $ 2.35
As a percentage of net revenues:                                        
  Compensation and benefits     61.5             62.8     62.5             66.5
  Non-compensation operating expenses     22.5             23.3     22.6             24.1
  Income before income taxes     16.0             13.9     14.9             9.4
                                           
                                           

Conference Call Information

Stifel Financial Corp. will host its fourth quarter and full-year 2013 financial results conference call on Monday, February 24, 2014, at 5:00 p.m. Eastern time. The conference call may include forward-looking statements.

All interested parties are invited to listen to Stifel's Chairman, President, and CEO, Ronald J. Kruszewski, by dialing (888) 676-3684 and referencing conference ID #22974566. 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; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Century Securities Associates, Inc. and through Stifel Nicolaus Europe Limited and Keefe, Bruyette & Woods Limited in the United Kingdom and Europe. 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 & Trust offers a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. offers trust and related services. To learn more about Stifel, please visit the Company's web site at www.stifel.com.

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.

   
Summary Results of Operations (Unaudited)  
    Three Months Ended     Year Ended  
(in thousands, except per share amounts)   12/31/13     12/31/12     % Change     9/30/13     % Change     12/31/13     12/31/12     % Change  
Revenues:                                                          
  Commissions   $ 152,451     $ 131,327     16.1     $ 145,837     4.5     $ 598,949     $ 501,434     19.4  
  Principal transactions     118,815       97,515     21.8       122,583     (3.1 )     459,968       408,935     12.5  
  Investment banking     158,860       72,938     117.8       92,851     71.1       448,060       281,280     59.3  
  Asset management and service fees     83,928       68,971     21.7       76,710     9.4       305,639       257,981     18.5  
  Other income     19,391       19,157     1.2       13,063     48.4       64,659       69,148     (6.5 )
    Operating revenues     533,445       389,908     36.8       451,044     18.3 `       1,877,275       1,518,778     23.6  
  Interest revenue     40,711       29,977     35.8       39,130     4.0       142,539       108,705     31.1  
    Total revenues     574,156       419,885     36.7       490,174     17.1       2,019,814       1,627,483     24.1  
  Interest expense     11,630       8,602     35.2       11,535     0.8       46,368       33,370     39.0  
    Net revenues     562,526       411,283     36.8       478,639     17.5       1,973,446       1,594,113     23.8  
                                                           
Non-interest expenses:                                                          
  Compensation and benefits     353,207       258,148     36.8       326,020     8.3       1,311,386       1,010,140     29.8  
  Occupancy and equipment rental     42,178       33,589     25.6       41,288     2.2       158,268       128,365     23.3  
  Communications and office supplies     25,692       19,291     33.2       26,122     (1.6 )     99,726       79,406     25.6  
  Commission and floor brokerage     8,448       7,271     16.2       10,150     (16.8 )     37,225       29,610     25.7  
  Other operating expenses     55,012       32,633     68.6       44,051     24.9       181,612       116,845     55.4  
    Total non-interest expenses     484,537       350,932     38.1       447,631     8.2       1,788,217       1,364,366     31.1  
                                                           
Income from continuing operations before income taxes     77,989       60,351     29.2       31,008     151.5       185,229       229,747     (19.4 )
  Provision for income taxes     25,863       17,067     51.5       (43,921 )   (158.9 )     12,322       84,451     (85.4 )
Net income from continuing operations     52,126       43,284     20.4       74,929     (30.4 )     172,907       145,296     19.0  
                                                           
Discontinued operations:                                                          
  Loss from discontinued operations, net of tax     (3,857 )     (3,330 )   15.8       (5,239 )   (26.4 )     (10,894 )     (6,723 )   62.1  
Net income   $ 48,269     $ 39,954     20.8     $ 69,690     (40.8 )   $ 162,013     $ 138,573     16.9  
                                                           
Earnings per basic common share:                                                          
  Income from continuing operations   $ 0.82     $ 0.80     2.5     $ 1.16     (29.3 )   $ 2.67     $ 2.71     (1.5 )
  Loss from discontinued operations     (0.06 )     (0.06 )   -       (0.08 )   (25.0 )     (0.17 )     (0.12 )   41.7  
  Earnings per basic common share   $ 0.76     $ 0.74     2.5     $ 1.08     (29.6 )   $ 2.50     $ 2.59     (3.5 )
                                                           
Earnings per diluted common share:                                                          
  Income from continuing operations   $ 0.69     $ 0.69     -     $ 1.00     (31.0 )   $ 2.35     $ 2.31     1.7  
  Loss from discontinued operations     (0.05 )     (0.06 )   (16.7 )     (0.07 )   (28.6 )     (0.15 )     (0.11 )   36.4  
  Earnings per diluted common share   $ 0.64     $ 0.63     1.6     $ 0.93     (31.2 )   $ 2.20     $ 2.20     -  
                                                           
Weighted average number of common shares outstanding:                                                          
  Basic     64,859       53,835     20.5       64,706     0.2       63,568       53,563     18.7  
  Diluted     75,495       63,301     19.3       75,191     0.4       73,504       62,937     16.8  
                                                           
                                                           
 
(in thousands, except per share, employee and location amounts)
    12/31/13   12/31/12   % Change   9/30/13   % Change
Statistical Information:                          
  Book value per common share   $ 32.30   $ 27.24   18.6   $ 31.46   2.7
  Financial advisors (3)     2,077     2,041   1.8     2,075   0.1
  Full-time associates     5,862     5,343   9.7     5,780   1.4
  Locations     357     340   5.0     355   0.6
  Total client assets   $ 165,570,000   $ 137,855,000   20.1   $ 153,901,000   7.6
                             
                             
Global Wealth Management Summary Results of Operations (Unaudited) 
 
    Three Months Ended     Year Ended
(in 000s)   12/31/13   12/31/12   % Change     9/30/13   % Change     12/31/13   12/31/12   % Change
Revenues:                                              
  Commissions   $ 104,149   $ 93,043   11.9     $ 99,427   4.7     $ 410,238   $ 361,871   13.4
  Principal transactions     55,809     53,542   4.2       58,658   (4.9 )     227,087     225,007   0.9
  Asset management and service fees     82,964     68,631   20.9       76,667   8.2       304,541     257,257   18.4
  Net interest     31,092     21,182   46.8       27,665   12.4       104,748     79,328   32.0
  Investment banking     9,568     10,818   (11.6 )     9,394   1.8       45,400     44,919   1.1
  Other income     9,254     6,559   41.1       2,858   223.9       26,165     23,215   8.4
    Net revenues     292,836     253,775   15.4       274,669   6.6       1,117,179     991,597   12.7
Non-interest expenses:                                              
  Compensation and benefits     167,980     146,311   14.8       159,949   5.0       648,681     576,744   12.5
  Non-compensation operating expenses     45,834     38,727   18.3       42,592   7.6       168,926     148,184   14.0
    Total non-interest expenses     213,814     185,038   15.6       202,541   5.6       817,607     724,928   12.8
Income before income taxes   $ 79,022   $ 68,737   15.0     $ 72,128   9.6     $ 299,572   $ 266,669   12.3
                                               
As a percentage of net revenues:                                              
  Compensation and benefits     57.4     57.7           58.2           58.1     58.2    
  Non-compensation operating expenses     15.6     15.2           15.5           15.1     14.9    
  Income before income taxes     27.0     27.1           26.3           26.8     26.9    
 
 
Stifel Bank & Trust (Unaudited)
 
Key Statistical Information
(in 000s, except percentages)   12/31/13     12/31/12     % Change     9/30/13     % Change
Other information:                                  
  Assets   $ 5,027,023     $ 3,650,235     37.7     $ 4,547,071     10.6
  Investment securities     3,062,549       2,327,316     31.6       2,949,080     3.8
  Retained loans, net     1,412,136       822,711     71.6       1,061,313     33.1
  Loans held for sale     109,110       214,531     (49.1 )     75,440     44.6
  Deposits     4,661,444       3,346,133     39.3       4,228,405     10.2
                                     
  Allowance as a percentage of loans     0.89 %     0.99 %           1.23 %    
  Non-performing assets as a percentage of total assets     0.03 %     0.06 %           0.32 %    
 
 
Institutional Group Summary Results of Operations (Unaudited)
   
    Three Months Ended     Year Ended  
(in 000s)   12/31/13   12/31/12   % Change     9/30/13   % Change     12/31/13   12/31/12   % Change  
Revenues:                                                
  Commissions   $ 48,302   $ 38,284   26.2     $ 46,410   4.1     $ 188,712   $ 139,564   35.2  
  Principal transactions     63,005     43,973   43.3       63,925   (1.4 )     232,880     183,927   26.6  
                                                   
  Capital raising     61,311     35,502   72.7       44,270   38.5       200,732     140,842   42.5  
  Advisory fees     87,981     26,618   230.5       39,186   124.5       201,928     95,519   111.4  
  Investment banking     149,292     62,120   140.3       83,456   78.9       402,660     236,361   70.4  
  Other (4)     6,683     16,316   (59.0 )     11,341   (41.1 )     36,906     44,802   (17.6 )
    Net revenues     267,282     160,693   66.3       205,132   30.3       861,158     604,654   42.4  
Non-interest expenses:                                                
  Compensation and benefits     165,779     105,025   57.8       119,874   38.3       524,870     380,185   38.1  
  Non-compensation operating expenses     52,913     33,990   55.7       50,272   5.3       193,399     122,982   57.3  
    Total non-interest expenses     218,692     139,015   57.3       170,146   28.5       718,269     503,167   42.7  
Income before income taxes   $ 48,590   $ 21,678   124.1     $ 34,986   38.9     $ 142,889   $ 101,487   40.8  
                                                 
As a percentage of net revenues:                                                
  Compensation and benefits     62.0     65.4           58.4           60.9     62.9      
  Non-compensation operating expenses     19.8     21.1           24.5           22.5     20.3      
  Income before income taxes     18.2     13.5           17.1           16.6     16.8      
 
 
Institutional Group Brokerage & Investment Banking Revenues (Unaudited)
   
    Three Months Ended     Year Ended  
(in 000s)   12/31/13   12/31/12   % Change     9/30/13   % Change     12/31/13   12/31/12   % Change  
Institutional brokerage:                                                
  Equity   $ 60,204   $ 38,659   55.7     $ 58,677   2.6     $ 232,392   $ 151,308   53.6  
  Fixed income     51,103     43,598   17.2       51,658   (1.1 )     189,200     172,183   9.9  
Institutional brokerage     111,307     82,257   35.3       110,335   0.9       421,592     323,491   30.3  
                                                 
Investment banking:                                                
  Capital raising:                                                
    Equity     46,634     16,947   175.2       30,739   51.7       142,636     81,818   74.3  
    Fixed income     14,677     18,555   (20.9 )     13,531   8.5       58,096     59,024   (1.6 )
      Capital raising     61,311     35,502   72.7       44,270   38.5       200,732     140,842   42.5  
  Advisory fees:     87,981     26,618   230.5       39,186   124.5       201,928     95,519   111.4  
Investment banking   $ 149,292   $ 62,120   140.3     $ 83,456   78.9     $ 402,660   $ 236,361   70.4  
                                                 

(1) A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed under "Non-GAAP Financial Measures."
(2) A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed under "Non-GAAP Financial Measures."
(3) Includes 143, 151 and 145 independent contractors at December 31, 2013 and 2012 and September 30, 2013, respectively.
(4) Includes net interest and other income.

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