SOURCE: Stifel Financial Corp.

Stifel Financial Corp.

August 10, 2015 16:55 ET

Stifel Reports Second Quarter 2015 Financial Results

ST. LOUIS, MO--(Marketwired - August 10, 2015) -

Highlights for the three months ended June 30, 2015:

  • Record net revenues of $597.8 million, increased 6.7% compared with the year-ago quarter.
  • Non-GAAP net income of $55.1 million, or $0.71 per diluted common share.
  • Net income of $20.9 million, or $0.27 per diluted common share.

Highlights for the six months ended June 30, 2015:

  • Record net revenues of $1.2 billion, increased 4.7% compared with the year-ago period.
  • Non-GAAP net income of $105.0 million, or $1.35 per diluted share.
  • Net income of $64.0 million, or $0.82 per diluted share.

Stifel Financial Corp. (NYSE: SF) today reported net income of $20.9 million, or $0.27 per diluted common share on record net revenues of $597.8 million for the three months ended June 30, 2015, compared with net income of $43.6 million, or $0.58 per diluted common share, on net revenues of $560.1 million for the second quarter of 2014.

For the three months ended June 30, 2015, the Company reported non-GAAP net income of $55.1 million, or $0.71 per diluted common share. These non-GAAP results exclude merger-related and other non-recurring expenses of $34.2 million (after-tax).

For the six months ended June 30, 2015, the Company reported net income of $64.0 million, or $0.82 per diluted common share on record net revenues of $1.2 billion, compared with net income of $91.0 million, or $1.20 per diluted share, on net revenues of $1.1 billion for the comparable period in 2014.

For the six months ended June 30, 2015, the Company reported non-GAAP net income of $105.0 million, or $1.35 per diluted share. A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

  Three Months Ended     Six Months Ended  
(in 000s) 6/30/15   6/30/14   %
Change
  3/31/15   %
Change
    6/30/15   6/30/14   %
Change
 
 Net revenues $ 597,751   $ 560,105     6.7   $ 560,982     6.6     $ 1,158,733   $ 1,106,862     4.7  
 Net income $ 20,888   $ 43,600     (52.1 ) $ 43,097     (51.5 )   $ 63,985   $ 90,983     (29.7 )
 Non-GAAP net income(1) $ 55,091   $ 49,290     11.8   $ 49,940     10.3     $ 105,031   $ 100,728     4.3  
                                                   
Earnings per common share:                                                  
 Basic $ 0.31   $ 0.66     (53.0 ) $ 0.63     (50.8 )   $ 0.94   $ 1.38     (31.9 )
 Diluted $ 0.27   $ 0.58     (53.4 ) $ 0.56     (51.8 )   $ 0.82   $ 1.20     (31.7 )
 Non-GAAP net income(1) $ 0.71   $ 0.65     9.2   $ 0.65     9.2     $ 1.35   $ 1.33     1.5  
                                                   
                                                   
Weighted average number of common shares outstanding:                                                  
 Basic   68,370     66,302     3.1     68,006     0.5       68,189     66,167     3.1  
 Diluted   77,856     75,641     2.9     77,359     0.6       77,624     75,665     2.6  
                                                   

Chairman's Comments

"Our record second quarter results demonstrate the strength of our platform. On June 5, 2015, we completed the acquisition of Sterne Agee, and as a result, our second quarter includes approximately one month of Sterne Agee's financial results. We are pleased to welcome our new associates to Stifel," stated Ronald J. Kruszewski, Chairman and CEO of Stifel.

Kruszewski continued, "We remain excited about partnering with the professionals at Barclays to continue to grow our Global Wealth Management business. We are committed to investing in and helping grow the Barclays franchise over the long-term, and creating a best-in-class platform to serve our clients. We remain on track to close the transaction in the 4th quarter of 2015."

Brokerage Revenues

Brokerage revenues, defined as commissions and principal transactions revenues, were $269.3 million, a 2.1% decrease compared with the second quarter of 2014 and a 4.0% decrease compared with the first quarter of 2015.

  • Global wealth management brokerage revenues were $158.8 million, a 1.1% decrease compared with the second quarter of 2014 and a 0.5% increase compared with the first quarter of 2015.
  • Institutional equity brokerage revenues were $58.6 million, a 3.8% decrease compared with the second quarter of 2014 and a 5.3% decrease compared with the first quarter of 2015.
  • Institutional fixed income brokerage revenues were $52.0 million, a 3.2% decrease compared with the second quarter of 2014 and a 14.4% decrease compared with the first quarter of 2015.

Investment Banking Revenues

Investment banking revenues were $161.0 million, an 11.2% increase compared with the second quarter of 2014 and a 28.7% increase compared with the first quarter of 2015.

  • Equity capital raising revenues were $55.5 million, a 15.7% decrease compared with the second quarter of 2014 and a 13.3% increase compared with the first quarter of 2015.
  • Fixed income capital raising revenues were $41.9 million, a 124.2% increase compared with the second quarter of 2014 and a 57.0% increase compared with the first quarter of 2015.
  • Advisory fee revenues were $63.6 million, a 5.4% increase compared with the second quarter of 2014 and a 28.7% increase compared with the first quarter of 2015.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were $119.9 million, a 27.3% increase compared with the second quarter of 2014 and a 5.3% increase compared with the first quarter of 2015. The increase is due to the higher value of fee-based accounts, as a result of market appreciation and new client assets.

Compensation and Benefits Expenses

For the quarter ended June 30, 2015, compensation and benefits expenses were $410.0 million, which included $39.6 million of merger-related expenses, compared with $355.3 million in the second quarter of 2014, and $355.7 million in the first quarter of 2015. Compensation and benefits expense included merger-related expenses of $1.5 million in the second quarter of 2014 and $3.4 million in the first quarter of 2015.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues was 62.0% in the second quarter of 2015, compared with 63.0% in the second quarter of 2014 and 62.5% in the first quarter of 2015. Transition pay, which primarily consists of amortization of retention awards, signing bonuses, and upfront notes, as a percentage of net revenues was 3.7% in the second quarter of 2015, compared with 4.5% in the second quarter of 2014 and 4.1% in the first quarter of 2015.

Non-Compensation Operating Expenses

For the quarter ended June 30, 2015, non-compensation operating expenses were $149.7 million, which included merger-related expenses of $15.1 million, compared with $130.4 million in the second quarter of 2014, and $135.2 million in the first quarter of 2015.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended June 30, 2015 was 22.5%, compared with 22.4% in the second quarter of 2014 and 23.2% in the first quarter of 2015.

Provision for Income Taxes

The effective income tax rate for the quarter ended June 30, 2015 was 45.1% compared with 41.4% in the second quarter of 2014, and 38.5% in the first quarter of 2015. The effective tax rate for the second quarter of 2015 was impacted by losses recognized by our foreign subsidiaries that are taxed at a different rate than our U.S. subsidiaries.

Assets and Capital

Assets

  • Assets increased 5.9% to $10.1 billion as of June 30, 2015 from $9.6 billion as of June 30, 2014. The increase is primarily attributable growth attributable to acquired assets from our acquisitions and an increase in the loan portfolio at Stifel Bank, offset by a decrease in Stifel Bank's investment portfolio and financial instruments owned, at fair value.
  • At June 30, 2015, the Company's Level 3 assets of $127.7 million, or 1.3% of total assets, consisted of $49.7 million of auction rate securities and $78.1 million of partnership interests, private company investments, private equity, and fixed income securities. The Company's Level 3 assets as a percentage of total assets measured at fair value was 6.3% at June 30, 2015.
  • Non-performing assets as a percentage of total assets as of June 30, 2015 was 0.13%.

Capital

  • The Company's Tier 1 leverage capital ratio was 18.3% at June 30, 2015 and Tier 1 risk-based capital ratio was 29.4% at June 30, 2015.
  • At June 30, 2015, book value per common share was $36.35 based on 69.3 million common shares outstanding.
  • Stockholders' equity as of June 30, 2015 increased $347.1 million, or 16.0%, to $2.5 billion from $2.2 billion as of June 30, 2014.

Conference Call Information

Stifel Financial Corp. will host its second quarter 2015 financial results conference call on Monday, August 10, 2015, 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 and CEO, Ronald J. Kruszewski, by dialing (888) 876-9938 and referencing conference ID #43107467. 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 clients are served through Stifel, Nicolaus & Company, Incorporated in the U.S., through Stifel Nicolaus Europe Limited in the United Kingdom and Europe, and through Keefe, Bruyette & Woods, Inc. in the U.S. 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    Six Months Ended  
(in thousands, except per share amounts) 6/30/15   6/30/14   %
Change
 3/31/15   %
Change
   6/30/15   6/30/14   %
Change
 
Revenues:                                           
 Commissions $183,770   $164,371     11.8  $180,302     1.9    $364,073   $336,614     8.2  
 Principal transactions  85,543    110,717     (22.7 ) 100,205     (14.6 )   186,275    221,399     (15.9 )
 Brokerage revenues  269,313    275,088     (2.1 ) 280,507     (4.0 )   550,348    558,013     (1.4 )
                                            
 Investment banking  161,007    144,815     11.2   125,089     28.7     285,568    280,077     2.0  
 Asset management and service fees  119,936    94,230     27.3   113,869     5.3     233,805    183,401     27.5  
 Other income  13,742    8,745     57.1   11,800     16.5     25,541    13,983     82.7  
 Operating revenues  563,998    522,878     7.9   531,265     6.2     1,095,262    1,035,474     5.8  
 Interest revenue  43,851    46,115     (4.9 ) 42,736     2.6     86,588    88,950     (2.7 )
 Total revenues  607,849    568,993     6.8   574,001     5.9     1,181,850    1,124,424     5.1  
 Interest expense  10,098    8,888     13.6   13,019     (22.4 )   23,117    17,562     31.6  
 Net revenues  597,751    560,105     6.7   560,982     6.6     1,158,733    1,106,862     4.7  
                                            
Non-interest expenses:                                           
 Compensation and benefits  409,998    355,267     15.4   355,693     15.3     765,691    702,257     9.0  
 Occupancy and equipment rental  48,346    43,237     11.8   44,170     9.5     92,516    84,019     10.1  
 Communications and office supplies  31,114    25,858     20.3   29,234     6.4     60,348    50,696     19.0  
 Commission and floor brokerage  9,124    9,248     (1.3 ) 10,069     (9.4 )   19,193    18,277     5.0  
 Other operating expenses  61,098    52,076     17.3   51,750     18.1     112,848    99,764     13.1  
 Total non-interest expenses  559,680    485,686     14.8   490,916     14.0     1,050,596    955,013     10.0  
                                            
Income before income taxes  38,071    74,419     (48.8 ) 70,066     (45.7 )   108,137    151,849     (28.8 )
 Provision for income taxes  17,183    30,819     (44.2 ) 26,969     (36.3 )   44,152    60,866     (27.5 )
Net income $20,888   $43,600     (52.1 )$43,097     (51.5 )  $63,985   $90,983     (29.7 )
                                            
Earnings per common share:                                           
 Basic $0.31   $0.66     (53.0 )$0.63     (50.8 )  $0.94   $1.38     (31.9 )
 Diluted $0.27   $0.58     (53.4 )$0.56     (51.8 )  $0.82   $1.20     (31.7 )
                                            
Weighted average number of common shares outstanding:                               
 Basic  68,370    66,302     3.1   68,006     0.5     68,189    66,167     3.1  
 Diluted  77,856    75,641     2.9   77,359     0.6     77,624    75,665     2.6  
                           

Statistical Information

 
(in thousands, except per share, employee and location amounts)
   6/30/15   6/30/14   %
Change
  3/31/15   %
Change
Statistical Information:                        
 Book value per share  $36.35   $33.18   9.6    $34.83   4.4 
 Financial advisors (2)   2,823    2,085   35.4     2,097   34.6 
 Full-time associates   6,952    5,881   18.2     6,274   10.8 
 Locations   398    361   10.2     368   8.2 
 Total client assets  $190,241,000   $173,383,000   9.7    $188,616,000   0.9 
               

Business Segment Results

 
Summary Segment Results (Unaudited)
   Three Months Ended     Six Months Ended  
(in 000s)  6/30/15   6/30/14   %
Change
  3/31/15   %
Change
    6/30/15   6/30/14   %
Change
 
Net revenues:                                                   
 Global Wealth Management  $ 343,382   $ 307,247     11.8   $ 329,410     4.2     $ 672,792   $ 604,430     11.3  
 Institutional Group    258,538     255,670     1.1     238,607     8.4       497,145     505,647     (1.7 )
 Other    (4,169 )   (2,812 )   (48.3 )   (7,035 )   40.7       (11,204 )   (3,215 )   (248.5 )
   $ 597,751   $ 560,105     6.7   $ 560,982     6.6     $ 1,158,733   $ 1,106,862     4.7  
Operating contribution: (3)                                                   
 Global Wealth Management  $ 93,975   $ 89,098     5.5   $ 98,847     (4.9 )   $ 192,823   $ 168,774     14.2  
 Institutional Group    41,942     42,312     (0.9 )   32,331     29.7       74,273     87,222     (14.8 )
 Other    (43,122 )   (49,583 )   13.0     (50,369 )   14.4       (93,492 )   (90,295 )   (3.5 )
   $ 92,795   $ 81,827     13.4   $ 80,809     14.8     $ 173,604   $ 165,701     4.8  
As a percentage of net revenues:                                              
 Compensation and benefits                                                   
 Global Wealth Management    57.1     55.9           55.6             56.4     57.2        
 Institutional Group    61.9     61.6           62.6             62.3     61.7        
 Non-comp. operating expenses                                                   
 Global Wealth Management    15.5     15.1           14.4             14.9     14.9        
 Institutional Group    21.9     21.9           23.8             22.8     21.1        
 Income before income taxes                                                   
 Global Wealth Management    27.4     29.0           30.0             28.7     27.9        
 Institutional Group    16.2     16.5           13.6             14.9     17.2        
     15.5     14.6           14.3             14.9     14.9        
                                                    
                           
   
Global Wealth Management Summary Results of Operations (Unaudited)  
   Three Months Ended     Six Months Ended  
(in 000s)  6/30/15   6/30/14   %
Change
  3/31/15   %
Change
    6/30/15   6/30/14   %
Change
 
Revenues:                                                   
 Commissions  $ 125,121   $ 112,205     11.5   $ 116,214     7.7     $ 241,335   $ 225,202     7.2  
 Principal transactions    33,682     48,335     (30.3 )   41,781     (19.4 )     75,689     95,638     (20.9 )
  Brokerage revenues    158,803     160,540     (1.1 )   157,995     0.5       317,024     320,840     (1.2 )
                                                    
 Asset management and service fees    119,734     94,187     27.1     113,666     5.3       233,400     183,317     27.3  
 Net interest    37,454     35,839     4.5     37,924     (1.2 )     75,378     71,101     6.0  
 Investment banking    15,128     11,132     35.9     10,326     46.5       25,228     22,263     13.3  
 Other income    12,263     5,549     121.0     9,499     29.0       21,762     6,909     215.0  
  Net revenues    343,382     307,247     11.8     329,410     4.2       672,792     604,430     11.3  
Non-interest expenses:                                                   
 Compensation and benefits    196,234     171,724     14.3     183,243     7.1       379,477     345,892     9.7  
 Non-compensation operating expenses    53,173     46,425     14.5     47,320     12.4       100,492     89,764     12.0  
  Total non-interest expenses    249,407     218,149     14.3     230,563     8.2       479,969     435,656     10.2  
Income before income taxes  $ 93,975   $ 89,098     5.5   $ 98,847     (4.9 )   $ 192,823   $ 168,774     14.2  
                                                    
As a percentage of net revenues:                                                   
 Compensation and benefits    57.1     55.9           55.6             56.4     57.2        
 Non-compensation operating expenses    15.5     15.1           14.4             14.9     14.9        
 Income before income taxes    27.4     29.0           30.0             28.7     27.9        
                            
                                
                                
Stifel Bank & Trust (Unaudited)
Key Statistical Information
(in 000s, except percentages) 6/30/15    6/30/14    %
Change
   3/31/15    %
Change
  
Other information:                               
 Assets $ 4,786,248    $ 5,039,556    (5.0 )  $ 5,289,349    (9.5 ) 
 Investment securities   1,907,282      2,915,235    (34.6 )    2,599,854    (26.6 ) 
 Retained loans, net   2,626,508      1,773,853    48.1      2,505,007    4.9   
 Loans held for sale   183,991      119,477    54.0      188,783    (2.5 ) 
 Deposits   4,313,940      4,654,937    (7.3 )    4,834,042    (10.8 ) 
                                
 Allowance as a percentage of loans   0.98 %    0.97 %         0.96 %      
 Non-performing assets as a percentage of total assets   0.13 %    0.10 %         0.13 %      
                                
                   
   
Institutional Group Summary Results of Operations (Unaudited)  
  Three Months Ended     Six Months Ended  
(in 000s) 6/30/15   6/30/14   %
Change
  3/31/15   %
Change
    6/30/15   6/30/14   %
Change
 
Revenues:                                                  
 Commissions $ 58,649   $ 52,166     12.4   $ 64,088     (8.5 )   $ 122,738   $ 111,411     10.2  
 Principal transactions   51,861     62,382     (16.9 )   58,423     (11.2 )     110,587     125,762     (12.1 )
  Brokerage revenues   110,510     114,548     (3.5 )   122,511     (9.8 )     233,325     237,173     (1.6 )
 Capital raising   82,690     73,327     12.8     65,321     26.6       147,707     138,685     6.5  
 Advisory fees   63,189     60,356     4.7     49,443     27.8       112,632     119,129     (5.5 )
 Investment banking   145,879     133,683     9.1     114,764     27.1       260,339     257,814     1.0  
 Other (4)   2,149     7,439     (71.1 )   1,332     61.3       3,481     10,660     (67.3 )
  Net revenues   258,538     255,670     1.1     238,607     8.4       497,145     505,647     (1.7 )
Non-interest expenses:                                                  
 Compensation and benefits   160,077     157,500     1.6     149,411     7.1       309,488     311,734     (0.7 )
 Non-compensation operating expenses   56,519     55,858     1.2     56,865     (0.6 )     113,384     106,691     6.3  
  Total non-interest expenses   216,596     213,358     1.5     206,276     5.0       422,872     418,425     1.1  
Income before income taxes $ 41,942   $ 42,312     (0.9 ) $ 32,331     29.7     $ 74,273   $ 87,222     (14.8 )
                                                   
As a percentage of net revenues:                                                  
 Compensation and benefits   61.9     61.6           62.6             62.3     61.7        
 Non-compensation operating expenses   21.9     21.9           23.8             22.8     21.1        
 Income before income taxes   16.2     16.5           13.6             14.9     17.2        
                           
 
Institutional Group Brokerage & Investment Banking Revenues (Unaudited)
  Three Months Ended      Six Months Ended  
(in 000s) 6/30/15   6/30/14   %
Change
  3/31/15   %
Change
     6/30/15   6/30/14   %
Change
 
Institutional brokerage:                                                   
 Equity $ 58,551   $ 60,865     (3.8 ) $ 61,803     (5.3 )    $ 120,548   $ 125,439     (3.9 )
 Fixed income   51,959     53,683     (3.2 )   60,708     (14.4 )      112,777     111,734     0.9  
Institutional brokerage   110,510     114,548     (3.5 )   122,511     (9.8 )      233,325     237,173     (1.6 )
                                                    
Investment banking:                                                   
 Capital raising:                                                   
 Equity   49,550     58,500     15.3 )   44,591     11.1        93,837     113,343     (17.2 )
 Fixed income   33,140     14,827     123.5     20,730     59.9        53,870     25,342     112.6  
 Capital raising   82,690     73,327     12.8     65,321     26.6        147,707     138,685     6.5  
 Advisory fees:   63,189     60,356     4.7     49,443     27.8        112,632     119,129     (5.5 )
Investment banking $ 145,879     133,683     9.1     114,764     27.1      $ 260,339     257,814     1.0  
                                                    

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 six months ended June 30, 2015. 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 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 primarily exclude acquisition related expenses which management believes are duplicative and will be eliminated, stock-based compensation and other expenses which in managements view are not representative of ongoing business.

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 six months ended June 30, 2015 to the aforementioned expenses on a non-GAAP basis for the same period.

         
  Three Months Ended June 30, 2015   Six Months Ended June 30, 2015  
(in 000s, except per share amounts) Non-GAAP   Adjustments   GAAP   Non-GAAP   Adjustments   GAAP  
Net revenues $ 597,751   $ -   $ 597,751   $ 1,161,445   $ (2,712)   $ 1,158,733  
                                     
Non-interest expenses:                                    
 Compensation and benefits   370,357     39,641     409,998     722,640     43,051     765,691  
 Non-compensation operating expenses   134,599     15,083     149,682     265,201     19,704     284,905  
  Total non-interest expenses   504,956     54,724     559,680     987,841     62,755     1,050,596  
Income before income taxes   92,795     (54,724)     38,071     173,604     (65,467)     108,137  
 Provision for income taxes   37,704     (20,521)     17,183     68,573     (24,421)     44,152  
Net income $ 55,091   $ (34,203)   $ 20,888   $ 105,031   $ (41,046)   $ 63,985  
                                     
Earnings per share::                                    
 Basic $ 0.81   $ (0.50)   $ 0.31   $ 1.54   $ (0.60)   $ 0.94  
 Diluted $ 0.71   $ (0.44)   $ 0.27   $ 1.35   $ (0.53)   $ 0.82  
                                     
As a percentage of net revenues:                                    
 Compensation and benefits   62.0           68.6     62.2           66.1  
 Non-compensation operating expenses   22.5           25.0     22.9           24.6  
 Income before income taxes   15.5           6.4     14.9           9.3  
                    

(1) A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed under "Non-GAAP Financial Measures."

(2) Includes 736, 140, and 134 independent contractors as of June 30, 2015, June 30, 2014, and March 31, 2015, respectively.

(3) A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed under "Non-GAAP Financial Measures."

(4) Includes net interest, other income, and asset management & service fees.

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