ST. LOUIS, Feb. 28, 2025 (GLOBE NEWSWIRE) -- Stifel (NYSE:SF), the official team naming partner of the Stifel U.S. Alpine Ski Team, is proud to celebrate the 100th career World Cup victory for Mikaela Shiffrin this past weekend as she captured first place in slalom in Sestriere, Italy, by supporting her efforts to raise $100,000 for the Share Winter Foundation. Shiffrin broke the all-time record for World Cup wins (86) back in March 2023 and has continued to build on that incredible record before notching h ...

Core Insights - Stifel Financial Corp. reported selected operating results for January 31, 2025, highlighting key performance metrics for investors [1][2] Group 1: Financial Performance - Client assets under administration reached $510 billion, marking a 14% year-on-year increase [2] - Fee-based assets grew to $197 billion, reflecting an 18% increase compared to the same period last year [2] - Private Client Group fee-based client assets increased to $172.5 billion, an 18% rise year-on-year [2] - Bank loans, net, amounted to $21.1 billion, an 8% increase from the previous year [2] - Client money market and insured products rose to $27.9 billion, a 7% increase year-on-year, although there was a 4% decline in January due to seasonal factors [2] Group 2: Company Overview - Stifel Financial Corp. is a financial services holding company based in St. Louis, Missouri, operating through several wholly owned subsidiaries [4] - The company provides a range of services including securities brokerage, investment banking, trading, and investment advisory to various clients [4] - Stifel Bank and Stifel Bank & Trust offer consumer and commercial lending solutions, while Stifel Trust Company provides trust and related services [4]

Financial Performance - The company's daily Value-at-Risk (VaR) for trading portfolios was $16,114,000 at its highest and $5,259,000 at its lowest during the year ended December 31, 2024, with an average of $9,703,000[513]. - Interest-earning assets totaled $20.8 billion, with loans accounting for $12.7 billion and securities for $6.6 billion[515]. - The company's interest-bearing liabilities amounted to $28.8 billion, primarily from transaction accounts and savings[515]. - The projected change in net interest margin at December 31, 2024, indicates a potential increase of 3.4% with a +200 basis points shift in interest rates[515]. - The cumulative GAP analysis at December 31, 2024, showed a negative GAP of $8.0 billion for the 0-6 months repricing period[515]. Risk Management - The company actively manages interest rate risk by matching assets and liabilities with similar cash flow and repricing time frames[514]. - Credit risk is managed through position limits for counterparties and regular credit reviews, ensuring exposure is monitored[517]. - The company is exposed to operational risk, which includes potential losses from inadequate internal processes and systems[524]. - The company engages in various trading and brokerage activities, with a focus on managing market, credit, and operational risks[502]. Regulatory Compliance - The company is subject to extensive regulation by the SEC, FINRA, and state securities regulators, as well as the Federal Reserve for bank holding companies[526]. - Stifel Bancorp must adhere to various regulatory capital requirements administered by the FDIC and state banking authorities, with failure to meet these requirements potentially leading to material effects on financial statements[527]. Economic Factors - The company's assets are primarily monetary, including cash and securities inventory, which are generally liquid and not significantly affected by inflation[528]. - Inflation impacts various expenses such as employee compensation, communications, and office supplies, which may not be recoverable in service pricing[528]. - Rising interest rates due to inflation may adversely affect the company's financial position and results of operations[528].

Core Viewpoint - Stifel Financial Corp. (NYSE: SF) is rated as a Buy for investors focused on capital appreciation and long-term investments, despite a recent stock price increase of over 45.2% leading to a high valuation multiple [1]. Group 1 - The company's stock price has risen significantly, indicating strong market performance [1]. - The investment recommendation is aimed at long-term buy and hold investors [1]. - The founder of Endurance Capital Management, David A. Johnson, has extensive experience in various investment vehicles, which adds credibility to the analysis [1].

Core Viewpoint - Stifel Financial (SF) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][2]. Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Stifel's earnings prospects, which is expected to positively influence its stock price [2]. - The current-quarter earnings estimate of $1.85 per share indicates a year-over-year increase of +24.16%, with a 6.32% rise in the Zacks Consensus Estimate over the last 30 days [4]. - For the full year, Stifel is projected to earn $8.26 per share, representing a +21.29% change year-over-year, with a 5.7% increase in the consensus estimate due to two upward revisions [5]. Zacks Rank - Stifel currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions that suggest potential for significant outperformance compared to the S&P 500 [6]. - Historically, Zacks 1 (Strong Buy) and 2 (Buy) ranked stocks have shown strong performance, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][6]. Investment Outlook - The strong estimate revisions have led to a 5.4% increase in Stifel's stock price over the past four weeks, suggesting further upside potential, making it a candidate for portfolio addition [7].

Fourth Quarter 2024 Financial Results Presentation January 29, 2025 Quarterly Earnings Report 2024 Snapshot 2024 RESULTS millions, except per share and ratios Record Net Revenue HIGHLIGHTS NET REVENUE GAAP $4,970 NON-GAAP $4,971 PRE-TAX MARGIN GAAP 18.7% NON-GAAP 20.1% NET EARNINGS GAAP $694 NON-GAAP $756 EPS GAAP $6.25 NON-GAAP $6.81 ROCE GAAP 14.6% NON-GAAP 15.9% ROTCE* GAAP 20.9% NON-GAAP 22.7% Second Highest Institutional Group Revenue Record Revenue for Global Wealth Management Record Asset Management ...

Group 1: Earnings Performance - Stifel Financial reported quarterly earnings of $2.23 per share, exceeding the Zacks Consensus Estimate of $1.97 per share, and up from $1.50 per share a year ago, representing an earnings surprise of 13.20% [1] - The company posted revenues of $1.36 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.70%, compared to $1.15 billion in the same quarter last year [2] Group 2: Stock Performance and Outlook - Stifel shares have increased approximately 8.6% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.72 on revenues of $1.26 billion, and for the current fiscal year, it is $7.87 on revenues of $5.4 billion [7] Group 3: Industry Context - The Financial - Investment Bank industry, to which Stifel belongs, is currently ranked in the top 2% of over 250 Zacks industries, indicating strong performance potential [8] - Another company in the same industry, Moelis, is expected to report a significant year-over-year earnings increase of 816.7% for the quarter ended December 2024, with revenues projected to rise by 55.5% [9][10]

Financial Performance - Net revenues for Q4 2024 reached $1,364,682, a 19.0% increase from $1,146,379 in Q4 2023[2] - Net income for Q4 2024 was $244,005, reflecting a 50.2% growth compared to $162,484 in Q4 2023[3] - Earnings per diluted common share increased to $2.18 in Q4 2024, up 49.3% from $1.46 in Q4 2023[2] - Total revenues for the year ended 2024 were $5,951,686, a 15.4% increase from $5,159,280 in 2023[3] - Total revenues for Q4 2024 reached $1,592,911, a 14.6% increase compared to $1,390,130 in Q4 2023[4] - Net income for Q4 2024 was $259,030, reflecting a 47.3% increase from $175,907 in Q4 2023[4] - GAAP net revenues for the year ended December 31, 2024, reached $4,970,320, an increase from $4,348,944 in the previous year[19] - Non-GAAP net revenues for the three months ended December 31, 2024, were $1,364,721, compared to $1,146,419 for the same period in 2023[19] Revenue Sources - Investment banking revenues for Q4 2024 were $304,419, a 48.0% increase from $205,664 in Q4 2023[3] - Asset management revenues rose to $405,825 in Q4 2024, up 22.8% from $330,536 in Q4 2023[3] - Global Wealth Management net revenues grew by 12.9% to $865,209 in Q4 2024, up from $766,028 in Q4 2023[5] - Revenues from asset management grew by 22.8% to $405,825, compared to $330,536 in the previous year[9] - Investment banking revenues increased by 48.8% year-over-year to $299.2 million, driven by a 52.4% rise in capital raising activities[11] Expenses and Costs - Non-interest expenses for Q4 2024 totaled $1,098,481, a 16.8% increase from $940,384 in Q4 2023[3] - Total non-interest expenses for Q4 2024 were $1,082,130, up 17.2% from $923,503 in Q4 2023[4] - Compensation and benefits expenses rose by 16.7% to $419,466 compared to $359,376 in the same quarter last year[8] - Compensation and benefits expense for the three months ended December 31, 2024, was $795,750, up from $674,437 in the prior year[19] Assets and Capital - Total assets as of December 31, 2024, were $39,895,540, a 5.7% increase from $37,727,460 a year earlier[6] - Common equity tier 1 capital increased to $3,645,786, a 12.8% rise from $3,230,965 in the previous year[7] - Total client assets reached $501,402,000, reflecting a 12.8% increase from $444,318,000 year-over-year[9] - Total assets for Stifel Bancorp grew to $31.4 billion, reflecting a 5.6% increase from $29.7 billion in 2023[12] - Total loans, net, increased by 8.0% to $21.3 billion, with significant growth in commercial and industrial loans, which rose by 13.9%[12] Credit Quality and Losses - The company reported a provision for credit losses of $11,893 in Q4 2024, a significant increase of 425.5% from $2,263 in Q4 2023[3] - Nonperforming assets surged by 254.0% year-over-year to $160.9 million, indicating potential credit quality concerns[12] - The allowance for credit losses stood at $170.0 million, representing 0.81% of retained loans[12] Tax and Regulatory Information - The effective tax rate for Q4 2024 was 8.3%, significantly lower than 21.1% in Q4 2023[6] - The effective tax rate for the three months ended December 31, 2024, was 8.3%, a decrease from 21.1% in the same period last year[19] - Regulatory capital amounts and ratios are estimates as of January 29, 2025, highlighting the company's ongoing compliance with financial regulations[1] Operational Adjustments - The company recorded severance costs associated with workforce reductions in certain foreign subsidiaries, reflecting operational adjustments[1] - The company began sweeping certain commercial treasury deposits to third-party banks in Q1 2024, enhancing liquidity management strategies[1] Miscellaneous - The weighted average number of diluted common shares outstanding was 112,089, a 0.7% increase from 111,330 in Q4 2023[3] - Financial advisors decreased to 2,342, down 1.8% from 2,386 in the previous year[9] - The investment portfolio totaled $8.3 billion, with collateralized loan obligations (CLOs) making up 78% of the portfolio[13] - The company managed client assets in Treasury Securities with maturities of 52 weeks or less, indicating a focus on short-term investments[1] - The average deferred taxes on goodwill and intangible assets were reported at $80.3 million as of December 31, 2024, showing the impact of tax strategies on financial results[1] - Stifel Financial Corp. includes capital raising and advisory revenues in its financial performance metrics, emphasizing its diversified revenue streams[1] - The tangible book value per share as of December 31, 2024, was calculated based on tangible common shareholders' equity, reflecting the company's financial health[1]

Core Viewpoint - Stifel Financial Corp. reported record net revenues and significant growth in net income for both the fourth quarter and the full year of 2024, demonstrating resilience and strength in its business model despite previous challenges in the institutional segment [3][8]. Financial Performance - The company achieved net revenues of $1.36 billion for Q4 2024, up from $1.15 billion in Q4 2023, representing a 19% increase [1][9]. - For the full year 2024, net revenues reached $4.97 billion, compared to $4.35 billion in 2023, marking a 14.3% increase [2][9]. - Net income available to common shareholders for Q4 2024 was $234.7 million, or $2.09 per diluted share, compared to $153.2 million, or $1.38 per diluted share in Q4 2023, reflecting a 53.2% increase [1][9]. - Full year net income available to common shareholders was $694.1 million, or $6.25 per diluted share, up from $485.3 million, or $4.28 per diluted share in 2023, a 43% increase [2][9]. Segment Performance - The Global Wealth Management segment reported record net revenues of $865.2 million for Q4 2024, up 13% from $766.0 million in Q4 2023 [11][14]. - The Institutional Group reported net revenues of $478.3 million for Q4 2024, a 33% increase from $359.3 million in Q4 2023, with pre-tax net income rising significantly from $7.8 million to $95.7 million [19][20]. Revenue Drivers - Investment banking revenues increased by 48% year-over-year in Q4 2024, driven by higher advisory and capital raising revenues [8][22]. - Asset management revenues reached record levels, up 18% over 2023, contributing to the overall revenue growth [8][37]. - Total client assets in the Global Wealth Management segment reached $501.4 billion, a 13% increase from the previous year [14][30]. Operational Efficiency - The company maintained a non-GAAP pre-tax margin of 20.7% for Q4 2024, up from 19.4% in Q4 2023 [9][70]. - The return on average tangible common equity (ROTCE) for the full year 2024 was 22.7%, compared to 16.6% in 2023, indicating improved profitability [9][74]. Strategic Initiatives - Stifel recruited 100 financial advisors during 2024, including 34 experienced employee advisors, enhancing its advisory capabilities [8][33]. - The Board of Directors approved a 10% increase in the common stock dividend, reflecting confidence in the company's financial health [8][55].

Core Points - Stifel Financial Corp. declared a cash dividend of $0.46 per share on its common stock, payable on March 17, 2025, to shareholders of record as of March 3, 2025 [1] - The Board of Directors also declared cash dividends on its Series B, C, and D Non-Cumulative Perpetual Preferred Stocks, with specific amounts for each series, all payable on March 17, 2025, to shareholders of record on March 3, 2025 [2] Company Information - Stifel Financial Corp. is a financial services holding company based in St. Louis, Missouri, providing banking, securities, and financial services through various wholly owned subsidiaries [3] - The company serves broker-dealer clients in the U.S., Canada, and Europe through its different business divisions and affiliates, offering a range of services including securities brokerage, investment banking, and trading [3] - Stifel Bank and Stifel Bank & Trust provide consumer and commercial lending solutions, while Stifel Trust Company offers trust and related services [3]