STIFEL FINANCIAL CORP
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
SF$71.35-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0000950170-24-055125
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092303
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 217 previous paragraphs and 233 current paragraphs.
119 unchanged; 67 reworded; 37 added; 28 removed; 3 previous and 10 current paragraphs rearranged.
Tables are not compared: 13 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (37)
Current report
For the six months ended June 30, 2024, net revenues increased 10.4% to $2.4 billion compared to $2.2 billion during the comparable period in 2023. Net income available to common shareholders increased 13.5% to $310.2 million, or $2.82 per diluted common share for the six months ended June 30, 2024, compared to $273.3 million, or $2.38 per diluted common share during the comparable period in 2023.
Current report
Our revenue growth was primarily attributable to higher investment banking, transactional, and asset management revenues, partially offset by lower net interest income.
Current report
For the three months ended June 30, 2024, commission revenues increased 10.9% to $183.3 million from $165.4 million in the comparable period in 2023. For the six months ended June 30, 2024, commission revenues increased 10.1% to $368.8 million from $334.9 million in the comparable period in 2023.
Current report
For the three months ended June 30, 2024, principal transactions revenues increased 45.3% to $153.6 million from $105.7 million in the comparable period in 2023. For the six months ended June 30, 2024, principal transactions revenues increased 32.3% to $292.6 million from $221.2 million in the comparable period in 2023.
Current report
For the three months ended June 30, 2024, investment banking revenues increased 39.8% to $233.3 million from $166.8 million in the comparable period in 2023.
Current report
Capital-raising revenues increased 29.0% to $101.9 million for the three months ended June 30, 2024 from $79.0 million in the comparable period in 2023. For the three months ended June 30, 2024, equity capital-raising revenues increased 61.0% to $51.3 million from $31.9 million in the comparable period in 2023 driven by higher volumes during the quarter. For the three months ended June 30, 2024, fixed income capital-raising revenues increased 7.4% to $50.6 million from $47.1 million in the comparable period in 2023 driven by higher bond issuances during the quarter.
Current report
Advisory revenues increased 49.5% to $131.4 million for the three months ended June 30, 2024 from $87.9 million in the comparable period in 2023. The increase is primarily attributable to higher levels of completed advisory transactions during the quarter.
Current report
For the six months ended June 30, 2024, investment banking revenues increased 18.1% to $447.2 million from $378.7 million in the comparable period in 2023.
Current report
Capital-raising revenues increased 40.6% to $196.6 million for the six months ended June 30, 2024 from $139.8 million in the comparable period in 2023. For the six months ended June 30, 2024, equity capital-raising revenues increased 60.0% to $93.6 million from $58.5 million in the comparable period in 2023 driven by higher volumes. For the six months ended June 30, 2024, fixed income capital-raising revenues increased 26.7% to $103.0 million from $81.3 million in the comparable period in 2023 driven by higher bond issuances during 2024.
Current report
Advisory revenues increased 4.9% to $250.7 million for the six months ended June 30, 2024 from $238.9 million in the comparable period in 2023. The increase is primarily attributable to higher levels of completed advisory transactions.
Current report
For the six months ended June 30, 2024, interest revenue increased 7.6% to $1.0 billion from $934.3 million in the comparable period in 2023, principally as a result of higher interest rates and interest-earning assets.
Current report
For the three months ended June 30, 2024, interest expense increased 29.4% to $247.3 million from $191.1 million during the comparable period in 2023. The increase is primarily attributable to higher interest rates, partially offset by lower interest-bearing liabilities. The average interest-bearing liabilities of Stifel Bancorp decreased to $26.8 billion during the three months ended June 30, 2024 compared to $27.2 billion during the comparable period in 2023 at average interest rates of 3.31% and 2.52%, respectively.
Current report
Compensation and benefits expense as a percentage of net revenues was 59.3% and 58.9% for the three and six months ended June 30, 2024, respectively, compared to 58.6% and 58.7% for the three and six months ended June 30, 2023, respectively. The increase is primarily attributable to higher compensable revenues.
Current report
Provision for credit losses –For the three months ended June 30, 2024, provision for credit losses decreased 62.2% to $3.0 million from $7.8 million during the comparable period in 2023. For the six months ended June 30, 2024, provision for credit losses decreased 35.5% to $8.2 million from $12.7 million during the comparable period in 2023. The decrease is primarily attributable to reserve reductions in certain asset classes driven by an improved macroeconomic environment, partially offset by growth in our loan portfolio.
Current report
Commissions – For the three months ended June 30, 2024, commission revenues increased 10.6% to $121.5 million from $109.8 million in the comparable period in 2023. For the six months ended June 30, 2024, commission revenues increased 10.3% to $242.7 million from $220.0 million in the comparable period in 2023.
Current report
For the six months ended June 30, 2024, interest expense of $453.1 million was incurred from average interest-bearing liabilities of $27.3 billion at an average interest rate of 3.32%. Interest expense of $308.9 million for the comparable period in 2023 was incurred from average interest-bearing liabilities of $27.2 billion at an average interest rate of 2.27%.
Current report
For the three months ended June 30, 2024, Global Wealth Management non-interest expenses increased 9.5% to $502.0 million from $458.3 million for the comparable period in 2023. For the six months ended June 30, 2024, Global Wealth Management non-interest expenses increased 11.4% to $1.0 billion from $899.4 million for the comparable period in 2023.
Current report
Compensation and benefits expense as a percentage of net revenues was 49.0% and 49.2% for the three and six months ended June 30, 2024, respectively, compared to 46.7% and 46.0% for the comparable periods in 2023. The increase is primarily attributable to higher compensable revenues over the comparable periods in 2023.
Current report
Provision for credit losses –For the three months ended June 30, 2024, provision for credit losses decreased 62.2% to $3.0 million from $7.8 million during the comparable period in 2023. For the six months ended June 30, 2024, provision for credit losses decreased 37.8% to $7.9 million from $12.7 million during the comparable period in 2023. The decrease is primarily attributable to reserve reductions in certain asset classes driven by an improved macroeconomic environment, partially offset by growth in our loan portfolio.
Current report
Other operating expenses – For the three months ended June 30, 2024, other operating expenses increased 11.6% to $39.2 million from $35.1 million during the comparable period in 2023. The increase is primarily attributable to increases in litigation and settlement expenses, travel and entertainment expense, professional fees, and subscriptions, partially offset by lower FDIC-insurance expense and bank service charges. For the six months ended June 30, 2024, other operating expenses increased 19.6% to $78.2 million from $65.4 million during the comparable period in 2023. The increase is primarily attributable to increases in litigation and settlement expenses, professional fees, travel and entertainment expense, bank service charges, and advertising.
Current report
For the three months ended June 30, 2024, income before income taxes decreased 0.2% to $299.2 million from $299.9 million during the comparable period in 2023. For the six months ended June 30, 2024, income before income taxes decreased 4.2% to $589.9 million from $616.0 million during the comparable period in 2023.
Current report
For the three months ended June 30, 2024, Institutional Group net revenues increased 40.8% to $390.7 million from $277.5 million for the comparable period in 2023. The increase in net revenues is primarily attributable to transactional revenues, advisory revenues, and capital-raising revenues.
Current report
Commissions – For the three months ended June 30, 2024, commission revenues increased 11.4% to $61.9 million from $55.5 million in the comparable period in 2023. For the six months ended June 30, 2024, commission revenues increased 9.8% to $126.1 million from $114.9 million in the comparable period in 2023.
Current report
Principal transactions – For the three months ended June 30, 2024, principal transactions revenues increased 69.8% to $97.7 million from $57.6 million in the comparable period in 2023. For the six months ended June 30, 2024, principal transaction revenues increased 44.4% to $176.2 million from $122.0 million in the comparable period in 2023.
Current report
Transactional revenues –For the three months ended June 30, 2024, transactional revenues increased 41.1% to $159.6 million from $113.1 million in the comparable period in 2023. For the six months ended June 30, 2024, transactional revenues increased 27.6% to $302.3 million from $236.9 million in the comparable period in 2023.
Current report
For the three months ended June 30, 2024, equity transactional revenues increased 16.0% to $52.9 million from $45.6 million in the comparable period in 2023. For the six months ended June 30, 2024, equity transactional revenues increased 9.2% to $107.0 million from $98.0 million during the comparable period in 2023. The increase in equity transactional revenues is primarily attributable to higher equities trading commissions over the comparable periods in 2023.
Current report
For the three months ended June 30, 2024, capital-raising revenues increased 28.3% to $96.1 million from $74.9 million in the comparable period in 2023. For the six months ended June 30, 2024, capital-raising revenues increased 41.8% to $186.5 million from $131.5 million in the comparable period in 2023.
Current report
For the three months ended June 30, 2024, equity capital-raising revenues increased 59.2% to $47.9 million from $30.1 million during the comparable period in 2023. For the six months ended June 30, 2024, equity capital-raising revenues increased 61.1% to $88.2 million from $54.8 million during the comparable period in 2023. The increase is primarily attributable to higher volumes over the comparable periods in 2023.
Current report
For the three months ended June 30, 2024, fixed income capital-raising revenues increased 7.5% to $48.1 million from $44.8 million during the comparable period in 2023. For the six months ended June 30, 2024, fixed income capital-raising revenues increased 28.0% to $98.3 million from $76.8 million during the comparable period in 2023. The increase is primarily attributable to higher bond issuances over the comparable periods in 2023.
Current report
Interest – For the three months ended June 30, 2024, interest increased 25.4% to $9.2 million from $7.3 million in the comparable period in 2023. For the six months ended June 30, 2024, interest increased 21.3% to $15.5 million from $12.8 million in the comparable period in 2023.
Current report
For the three months ended June 30, 2024, Institutional Group non-interest expenses increased 18.3% to $341.9 million from $289.1 million for the comparable period in 2023. For the six months ended June 30, 2024, Institutional Group non-interest expenses increased 11.6% to $656.2 million from $588.0 million during the comparable period in 2023.
Current report
Occupancy and equipment rental – For the three months ended June 30, 2024, occupancy and equipment rental expense increased 6.4% to $22.3 million from $20.9 million during the comparable period in 2023. For the six months ended June 30, 2024, occupancy and equipment rental expense increased 5.2% to $44.4 million from $42.2 million during the comparable period in 2023. The increase is attributable to higher furniture and equipment costs.
Current report
Communications and office supplies – For the three months ended June 30, 2024, communications and office supplies expense increased 3.3% to $26.2 million from $25.3 million during the comparable period in 2023. For the six months ended June 30, 2024, communications and office supplies expense increased 1.5% to $51.3 million from $50.6 million during the comparable period in 2023. The increase is primarily attributable to higher communication and quote expenses.
Current report
Commissions and floor brokerage – For the three months ended June 30, 2024, commissions and floor brokerage expense remained relatively consistent with the comparable period in 2023 at $7.9 million. For the six months ended June 30, 2024, commissions and floor brokerage expense increased 7.8% to $17.2 million from $16.0 million during the comparable period in 2023. The increase is primarily attributable to higher clearing expenses.
Current report
Other operating expenses – For the three months ended June 30, 2024, other operating expenses increased 14.1% to $46.5 million from $40.8 million during the comparable period in 2023. For the six months ended June 30, 2024, other operating expenses increased 11.7% to $88.4 million from $79.2 million during the comparable period in 2023. The increase is primarily attributable to higher settlement-related expenses, investment banking expenses, conference-related expenses, and professional fees, partially offset by lower travel and entertainment expenses, subscription expenses, and FDIC-insurance expense.
Current report
For the three months ended June 30, 2024, income before income taxes for the Institutional Group segment increased 521.1% to $48.8 million from a loss of $11.6 million during the comparable period in 2023. For the six months ended June 30, 2024, income before income taxes for the Institutional Group segment increased 288.2% to $85.9 million from $22.1 million during the comparable period in 2023.
Current report
For the three months ended June 30, 2024, non-interest expenses increased 20.7% to $147.2 million from $121.9 million in 2023. The increase is primarily attributable to an increase in variable compensation over the comparable period in 2023 and the recording of severance costs during the second quarter of 2024 associated with workforce reductions in certain of our foreign subsidiaries. For the six months ended June 30, 2024, non-interest expenses decreased 0.5% to $277.5 million from $278.9 million in 2023.
Removed paragraphs (28)
Previous report
Our revenue growth was primarily attributable to higher asset management, transactional, and capital-raising revenues during the quarter, partially offset by lower net interest income and advisory revenues. We benefited from market conditions that included strong equity markets, recovering capital markets, and an improving U.S. economy.
Previous report
For the three months ended March 31, 2024, commission revenues increased 9.4% to $185.5 million from $169.6 million in the comparable period in 2023.
Previous report
For the three months ended March 31, 2024, principal transactions revenues increased 20.3% to $139.0 million from $115.5 million in the comparable period in 2023.
Previous report
For the three months ended March 31, 2024, investment banking revenues increased 1.0% to $213.9 million from $211.9 million in the comparable period in 2023.
Previous report
Capital-raising revenues increased 55.7% to $94.7 million for the three months ended March 31, 2024 from $60.8 million in the comparable period in 2023. For the three months ended March 31, 2024, equity capital-raising revenues increased 58.7% to $42.3 million from $26.6 million in the comparable period in 2023 driven by higher volumes. For the three months ended March 31, 2024, fixed income capital-raising revenues increased 53.4% to $52.4 million from $34.2 million in the comparable period in 2023 driven by higher bond issuances during the first quarter of 2024.
Previous report
Advisory revenues decreased 21.1% to $119.3 million for the three months ended March 31, 2024 from $151.1 million in the comparable period in 2023. The decrease is primarily attributable to lower completed advisory transactions.
Previous report
Provision for credit losses –For the three months ended March 31, 2024, provision for credit losses increased 7.1% to $5.3 million from $4.9 million during the comparable period in 2023. The increase is primarily attributable to changes in the outlook for macroeconomic conditions.
Previous report
Commissions – For the three months ended March 31, 2024, commission revenues increased 10.0% to $121.2 million from $110.2 million in the comparable period in 2023.
Previous report
Principal transactions – For the three months ended March 31, 2024, principal transactions revenues increased 18.5% to $60.5 million from $51.1 million in the comparable period in 2023. The increase is primarily attributable to an increase in corporate debt trading over the comparable period in 2023.
Previous report
For the three months ended March 31, 2024, Global Wealth Management non-interest expenses increased 13.3% to $499.8 million from $441.1 million for the comparable period in 2023.
Previous report
Compensation and benefits expense as a percentage of net revenues was 49.3% for the three months ended March 31, 2024, compared to 45.2% for the comparable period in 2023. The increase is primarily attributable to higher compensable revenues over the comparable period in 2023.
Previous report
Provision for credit losses –For the three months ended March 31, 2024, provision for credit losses increased 1.0% to $5.0 million from $4.9 million during the comparable period in 2023. The increase is primarily attributable to changes in the outlook for macroeconomic conditions.
Previous report
Other operating expenses – For the three months ended March 31, 2024, other operating expenses increased 28.8% to $39.0 million from $30.3 million during the comparable period in 2023. The increase is primarily attributable to increases in litigation and settlement expenses, FDIC-insurance, bank service charges, and professional fees.
Previous report
For the three months ended March 31, 2024, income before income taxes decreased 8.0% to $290.7 million from $316.1 million during the comparable period in 2023.
Previous report
Commissions – For the three months ended March 31, 2024, commission revenues increased 8.3% to $64.3 million from $59.4 million in the comparable period in 2023.
Previous report
Transactional revenues –For the three months ended March 31, 2024, institutional transactional revenues increased 15.3% to $142.7 million from $123.8 million in the comparable period in 2023.
Previous report
For the three months ended March 31, 2024, equity institutional transactional revenues increased 3.2% to $54.1 million from $52.4 million during the comparable period in 2023. The increase in equity institutional transactional revenues is primarily attributable to higher trading gains.
Previous report
For the three months ended March 31, 2024, capital-raising revenues increased 59.6% to $90.4 million from $56.7 million in the comparable period in 2023.
Previous report
For the three months ended March 31, 2024, equity capital-raising revenues increased 63.3% to $40.3 million from $24.7 million during the comparable period in 2023 driven by higher volumes.
Previous report
For the three months ended March 31, 2024, fixed income capital-raising revenues increased 56.7% to $50.1 million from $32.0 million during the comparable period in 2023. The increase is primarily attributable to higher bond issuances.
Previous report
Interest – For the three months ended March 31, 2024, interest increased 15.9% to $6.3 million from $5.5 million in the comparable period in 2023.
Previous report
For the three months ended March 31, 2024, Institutional Group non-interest expenses increased 5.1% to $314.3 million from $298.9 million for the comparable period in 2023.
Previous report
Compensation and benefits expense as a percentage of net revenues was 61.4% for the three months ended March 31, 2024, compared to 61.9% for the comparable period in 2023. The decrease is primarily attributable to higher revenues.
Previous report
Occupancy and equipment rental – For the three months ended March 31, 2024, occupancy and equipment rental expense increased 4.0% to $22.1 million from $21.3 million during the comparable period in 2023. The increase is attributable to higher occupancy and data processing costs associated with continued investments in our business.
Previous report
Communications and office supplies – For the three months ended March 31, 2024, communications and office supplies expense of $25.2 million remained relatively consistent with the comparable period in 2023.
Previous report
Commissions and floor brokerage – For the three months ended March 31, 2024, commissions and floor brokerage expense increased 15.3% to $9.3 million from $8.1 million during the comparable period in 2023. The increase is primarily attributable to higher ECN trading costs and clearing expenses .
Previous report
For the three months ended March 31, 2024, income before income taxes for the Institutional Group segment increased 10.1% to $37.1 million from $33.7 million during the comparable period in 2023.
Previous report
For the three months ended March 31, 2024, non-interest expenses decreased 17.0% to $130.3 million from $156.9 million in 2023. The decrease is primarily attributable to a decrease in variable compensation.
Reworded paragraphs (67)
Previous wording
Stifel Financial Corp., through its wholly owned subsidiaries, is principally engaged in retail brokerage; securities trading; investment banking; investment advisory; retail, consumer, and commercial banking; and related financial services. Our major geographic area of concentration is throughout the United States, with a growing presence in the United Kingdom, Europe, and Canada. Our principal customers are individual investors, corporations, municipalities, and institutions.
Current wording
Stifel Financial Corp., through its wholly owned subsidiaries, is principally engaged in retail brokerage; securities trading; investment banking; investment advisory; retail, consumer, and commercial banking; and related financial services. Our major geographic area of concentration is throughout the United States, with a presence in the United Kingdom, Europe, and Canada. Our principal customers are individual investors, corporations, municipalities, and institutions.
Previous wording
Results for the three months ended March 31, 2024
Current wording
Results for the three and six months ended June 30, 2024
Previous wording
For the three months ended March 31, 2024, net revenues increased 5.1% to $1.2 billion from $1.1 billion during the comparable period in 2023. Net income available to common shareholders increased 4.1% to $154.3 million, or $1.40 per diluted common share for the three months ended March 31, 2024, compared to $148.2 million, or $1.28 per diluted common share during the comparable period in 2023.
Current wording
For the three months ended June 30, 2024, net revenues increased 15.9% to $1.2 billion from $1.1 billion during the comparable period in 2023. Net income available to common shareholders increased 24.7% to $156.0 million, or $1.41 per diluted common share for the three months ended June 30, 2024, compared to $125.0 million, or $1.10 per diluted common share during the comparable period in 2023.
Previous wording
At its meetings in first quarter of 2024, the Federal Reserve unanimously decided to hold the target federal funds rate steady at 5.25% to 5.50%, a 23-year high and the fifth consecutive meeting with no target rate change. While the market generally expected that the Federal Reserve would ease rates to some extent in 2024 given the strong performance of the U.S. economy and low unemployment levels, the Federal Reserve has held them at their current, more restrictive range since the outset of the year given higher than anticipated inflationary readings and the Federal Reserve’s desire for inflation to return to its 2% long-term target. The Federal Reserve’s median forecast currently projects three rate decreases during 2024, though this is subject to change and the market believes that these restrictive conditions will likely continue.
Current wording
At its meetings in the second quarter of 2024, the Federal Reserve unanimously decided to hold the target federal funds rate steady at 5.25% to 5.50%, a 23-year high and the seventh consecutive meeting with no target rate change. While the market generally expected that the Federal Reserve would ease rates to some extent in 2024 given the strong performance of the U.S. economy and low unemployment levels, the Federal Reserve has held them at their current, more restrictive range since the outset of the year given higher than anticipated inflationary readings and the Federal Reserve’s desire for inflation to return to its 2% long-term target. The Federal Reserve’s median forecast currently projects one rate decrease during 2024, though this is subject to change and the market believes that these restrictive conditions will likely continue.
Previous wording
Transactional revenues – For the three months ended March 31, 2024, transactional revenues increased 13.8% to $324.5 million from $285.1 million in the comparable period in 2023 as a result of an increase in client activity.
Current wording
Transactional revenues – For the three months ended June 30, 2024, transactional revenues increased 24.3% to $336.9 million from $271.1 million in the comparable period in 2023. For the six months ended June 30, 2024, transactional revenues increased 18.9% to $661.4 million from $556.1 million in the comparable period in 2023 as a result of an increase in client activity.
Previous wording
For the three months ended March 31, 2024, asset management revenues increased 16.4% to $367.5 million from $315.6 million in the comparable period in 2023. Please refer to “Asset management” in the Global Wealth Management segment discussion for information on the changes in asset management revenues.
Current wording
For the three months ended June 30, 2024, asset management revenues increased 18.9% to $380.8 million from $320.3 million in the comparable period in 2023. For the six months ended June 30, 2024, asset management revenues increased 17.7% to $748.2 million from $635.8 million in the comparable period in 2023. Please refer to “Asset management” in the Global Wealth Management segment discussion for information on the changes in asset management revenues.
Previous wording
Other income – Other income primarily includes investment gains and losses, rental income, and loan originations fees. For the three months ended March 31, 2024, other income increased 315.9% to $5.0 million from a loss of $2.3 million during the comparable period in 2023. The increase is primarily attributable to lower investment losses in the first quarter of 2024, rental income generated from our aircraft engine leasing business, and higher loan origination fees. The first quarter of 2023 was negatively impacted by losses on the sale of investments.
Current wording
Other income – Other income primarily includes investment gains and losses, rental income, and loan originations fees. For the three months ended June 30, 2024, other income increased to $16.2 million from $0.9 million during the comparable period in 2023. The increase is primarily attributable to rental income generated from our aircraft engine leasing business, higher investment gains during the quarter, and an increase in loan origination fees. For the six months ended June 30, 2024, other income increased to $21.1 million from a loss of $1.4 million during the comparable period in 2023. The increase is primarily attributable to higher investment gains, rental income generated from our aircraft engine leasing business, and an increase in loan origination fees from the comparable period in 2023. The first quarter of 2023 was negatively impacted by losses on the sale of investments.
Previous wording
The following table presents average balance data and operating interest revenue and expense data, as well as related interest yields for the periods indicated (in thousands, except rates):
Current wording
The following tables present average balance data and operating interest revenue and expense data, as well as related interest yields for the periods indicated (in thousands, except rates):
Previous wording
Net interest income – Net interest income is the difference between interest earned on interest-earning assets and interest paid on funding sources. Net interest income is affected by changes in the volume and mix of these assets and liabilities, as well as by fluctuations in interest rates and portfolio management strategies. For the three months ended March 31, 2024, net interest income decreased to $252.2 million from $296.6 million during the comparable period in 2023.
Current wording
Net interest income – Net interest income is the difference between interest earned on interest-earning assets and interest paid on funding sources. Net interest income is affected by changes in the volume and mix of these assets and liabilities, as well as by fluctuations in interest rates and portfolio management strategies. For the three months ended June 30, 2024, net interest income decreased 14.0% to $250.8 million from $291.7 million during the comparable period in 2023. For the six months ended June 30, 2024, net interest income decreased 14.5% to $503.0 million from $588.2 million during the comparable period in 2023.
Previous wording
For the three months ended March 31, 2024, interest revenue increased 12.2% to $506.8 million from $451.6 million in the comparable period in 2023, principally as a result of an increase in interest rates and interest-earning assets. The average interest-earning assets of Stifel Bancorp increased to $30.2 billion during the three months ended March 31, 2024 compared to $29.7 billion during the comparable period in 2023 at average interest rates of 6.16% and 5.58%, respectively.
Current wording
For the three months ended June 30, 2024, interest revenue increased 3.2% to $498.2 million from $482.8 million in the comparable period in 2023, principally as a result of higher interest rates, partially offset by a decrease in interest-earning assets. The average interest-earning assets of Stifel Bancorp decreased to $29.2 billion during the three months ended June 30, 2024 compared to $29.9 billion during the comparable period in 2023 at average interest rates of 6.22% and 5.96%, respectively.
Previous wording
For the three months ended March 31, 2024, interest expense increased 64.3% to $254.7 million from $155.0 million during the comparable period in 2023. The increase is primarily attributable to higher interest rates and interest-bearing liabilities. The average interest-bearing liabilities of Stifel Bancorp increased to $27.7 billion during the three months ended March 31, 2024 compared to $27.1 billion during the comparable period in 2023 at average interest rates of 3.34% and 2.02%, respectively.
Current wording
For the six months ended June 30, 2024, interest expense increased 45.0% to $502.0 million from $346.1 million in the comparable period in 2023. The increase is primarily attributable to higher interest rates and interest-bearing liabilities. The average interest-bearing liabilities of Stifel Bancorp increased to $27.3 billion during the six months ended June 30, 2024 compared to $27.2 billion during the comparable period in 2023 at average interest rates of 3.32% and 2.27%, respectively.
Previous wording
For the three months ended March 31, 2024, compensation and benefits expense increased 4.4% to $679.7 million from $651.2 million during the comparable period in 2023. The increase in compensation and benefits expenses is primarily attributable to higher compensable revenues.
Current wording
For the three months ended June 30, 2024, compensation and benefits expense increased 17.4% to $722.7 million from $615.7 million during the comparable period in 2023. For the six months ended June 30, 2024, compensation and benefits expense increased 10.7% to $1.4 billion from $1.3 billion during the comparable period in 2023. The increase in compensation and benefits expenses is primarily attributable to higher compensable revenues.
Previous wording
Occupancy and equipment rental – For the three months ended March 31, 2024, occupancy and equipment rental expense increased 8.0% to $88.7 million from $82.1 million during the comparable period in 2023. The increase is primarily attributable to higher data processing expense and occupancy costs associated with an increase in business activity.
Current wording
Occupancy and equipment rental – For the three months ended June 30, 2024, occupancy and equipment rental expense increased 6.2% to $89.9 million from $84.6 million during the comparable period in 2023. For the six months ended June 30, 2024, occupancy and equipment rental expense increased 7.1% to $178.6 million from $166.7 million during the comparable period in 2023. The increase is primarily attributable to higher data processing and occupancy costs associated with an increase in business activity over the comparable periods in 2023.
Previous wording
Communications and office supplies – Communications expense includes costs for telecommunication and data communication, primarily for obtaining third-party market data information. For the three months ended March 31, 2024, communications and office supplies expense increased 2.7% to $47.4 million from $46.1 million during the comparable period in 2023. The increase is primarily attributable to higher communication and quote equipment and postage and shipping expenses associated with the continued growth of our business.
Current wording
Communications and office supplies – Communications expense includes costs for telecommunication and data communication, primarily for obtaining third-party market data information. For the three months ended June 30, 2024, communications and office supplies expense increased 7.1% to $48.2 million from $45.0 million during the comparable period in 2023. For the six months ended June 30, 2024, communications and office supplies expense increased 4.9% to $95.5 million from $91.1 million during the comparable period in 2023. The increase is primarily attributable to higher communication and quote expenses associated with the continued investments made in our business.
Previous wording
Commissions and floor brokerage – For the three months ended March 31, 2024, commissions and floor brokerage expense increased 9.2% to $15.8 million from $14.4 million during the comparable period in 2023. The increase is primarily attributable to higher electronic communication network (“ECN”) trading costs, clearing expenses, and processing expenses.
Current wording
Commissions and floor brokerage – For the three months ended June 30, 2024, commissions and floor brokerage expense increased 1.9% to $14.4 million from $14.1 million during the comparable period in 2023. The increase is primarily attributable to higher clearing expenses and processing expenses, partially offset by lower electronic communication network (“ECN”) trading costs. For the six months ended June 30, 2024, commissions and floor brokerage expense increased 5.6% to $30.2 million from $28.6 million during the comparable period in 2023. The increase is primarily attributable to higher clearing expenses, processing expenses, and ECN trading costs.
Previous wording
Other operating expenses – For the three months ended March 31, 2024, other operating expenses increased 9.2% to $41.9 million from $38.4 million during the comparable period in 2023. The increase is primarily attributable to higher investment banking transaction expenses, settlement-related expenses, and conference-related expenses, partially offset by lower licensing costs, subscription expenses, and travel and entertainment expenses.
Current wording
For the three months ended June 30, 2024, other operating expenses increased 10.6% to $112.9 million from $102.2 million during the comparable period in 2023. The increase is primarily attributable to increases in professional fees, litigation expense, investment banking transaction expenses, advertising, and travel and conference-related expenses, partially offset by lower FDIC-insurance expense.
Previous wording
For the three months ended March 31, 2024, other operating expenses increased 9.6% to $107.5 million from $98.1 million during the comparable period in 2023. The increase is primarily attributable to increases in FDIC-insurance expense, investment banking transaction expenses, professional fees, advertising, and travel and conference-related expenses, partially offset by lower settlement-related expenses.
Current wording
For the six months ended June 30, 2024, other operating expenses increased 10.1% to $220.5 million from $200.2 million during the comparable period in 2023. The increase is primarily attributable to increases in professional fees, investment banking transaction expenses, advertising, travel and conference-related expenses, and litigation expense, partially offset by lower settlement-related expenses and FDIC-insurance expense.
Previous wording
Provision for income taxes – For the three months ended March 31, 2024, our provision for income taxes was $55.1 million, representing an effective tax rate of 25.2%, compared to $52.3 million for the comparable period in 2023, representing an effective tax rate of 24.9%. The tax rate was impacted by the excess tax benefit related to stock based compensation and non-deductible foreign losses.
Current wording
Provision for income taxes – For the three and six months ended June 30, 2024, our provision for income taxes was $61.6 million and $116.7 million, representing an effective tax rate of 27.1% and 26.2%, respectively, compared to $47.0 million and $99.4 million for the comparable periods in 2023, representing an effective tax rate of 25.9% and 25.4%, respectively.
Previous wording
For the three months ended March 31, 2024, Global Wealth Management net revenues increased 4.4% to a record $790.5 million from $757.2 million for the comparable period in 2023. The increase in net revenues over the comparable period in 2023 is primarily attributable to increases in asset management revenues and transactional revenues, partially offset by lower net interest income.
Current wording
For the three months ended June 30, 2024, Global Wealth Management net revenues increased 5.7% to a record $801.1 million from $758.2 million for the comparable period in 2023. For the six months ended June 30, 2024, Global Wealth Management net revenues increased 5.0% to a record $1.6 billion from $1.5 billion for the comparable period in 2023. The increase in net revenues over the comparable periods in 2023 is primarily attributable to increases in asset management, transactional, and investment banking revenues, partially offset by lower net interest income.
Previous wording
Principal transactions – For the three months ended March 31, 2024, principal transactions revenues increased 21.8% to $78.5 million from $64.5 million in the comparable period in 2023.
Current wording
Principal transactions – For the three months ended June 30, 2024, principal transactions revenues increased 16.0% to $55.8 million from $48.1 million in the comparable period in 2023. For the six months ended June 30, 2024, principal transactions revenues increased 17.3% to $116.4 million from $99.2 million in the comparable period in 2023.
Previous wording
Transactional revenues – For the three months ended March 31, 2024, transactional revenues increased 12.7% to $181.8 million from $161.3 million in the comparable period in 2023 as a result of an increase in client activity.
Current wording
Transactional revenues – For the three months ended June 30, 2024, transactional revenues increased 12.3% to $177.3 million from $158.0 million in the comparable period in 2023. For the six months ended June 30, 2024, transactional revenues increased 12.5% to $359.1 million from $319.2 million in the comparable period in 2023 as a result of an increase in client activity.
Previous wording
Asset management – For the three months ended March 31, 2024, asset management revenues increased 16.5% to a record $367.5 million from $315.5 million in the comparable period in 2023. The increase is primarily attributable to higher asset values. Fee-based account revenues are primarily billed based on asset values at the end the prior quarter.
Current wording
Asset management – For the three months ended June 30, 2024, asset management revenues increased 18.9% to $380.7 million from $320.2 million in the comparable period in 2023. For the six months ended June 30, 2024, asset management revenues increased 17.7% to $748.2 million from $635.8 million in the comparable period in 2023. The increase is primarily attributable to higher asset values. Fee-based account revenues are primarily billed based on asset values at the end the prior quarter.
Previous wording
Investment banking – Investment banking, which represents sales credits for investment banking underwritings, increased 2.9% to $4.3 million for the three months ended March 31, 2024 from $4.2 million during the comparable period in 2023. Please refer to “Investment banking” in the Institutional Group segment discussion for information on the changes in net revenues.
Current wording
Investment banking – Investment banking, which represents sales credits for investment banking underwritings, increased 42.2% to $5.8 million for the three months ended June 30, 2024 from $4.1 million during the comparable period in 2023. For the six months ended June 30, 2024, investment banking revenues increased 22.3% to $10.1 million from $8.2 million during the comparable period in 2023. Please refer to “Investment banking” in the Institutional Group segment discussion for information on the changes in net revenues.
Previous wording
Interest revenue – For the three months ended March 31, 2024, interest revenue increased 11.6% to $480.4 million from $430.5 million in the comparable period in 2023. The increase is primarily attributable to higher interest rates and interest-earning assets. Please refer to “Net Interest Income – Stifel Bancorp” below for a further discussion of the changes in net interest income.
Current wording
Interest revenue – For the three months ended June 30, 2024, interest revenue increased 2.0% to $470.4 million from $461.0 million in the comparable period in 2023. For the six months ended June 30, 2024, interest revenue increased 6.6% to $950.7 million from $891.5 million during the comparable period in 2023. The increase is primarily attributable to higher interest rates, partially offset by lower interest-earning assets. Please refer to “Net Interest Income – Stifel Bancorp” below for a further discussion of the changes in net interest income.
Previous wording
Other income – For the three months ended March 31, 2024, other income increased 113.1% to $0.7 million from a loss of $5.7 million in the comparable period in 2023. The increase is primarily attributable to lower investment losses in the first quarter of 2024 and an increase in loan origination fees. The first quarter of 2023 was negatively impacted by losses on the sale of investments.
Current wording
Other income – For the three months ended June 30, 2024, other income increased 172.7% to $1.0 million from a loss of $1.4 million in the comparable period in 2023. The increase is primarily attributable to an increase in loan origination fees and improved investment gains during the quarter. For the six months ended June 30, 2024, other income increased 125.0% to $1.8 million from a loss of $7.1 million during the comparable period in 2023. The increase is primarily attributable to lower investment losses and an increase in loan origination fees. The six months ended June 30, 2023 was negatively impacted by losses on the sale of investments.
Previous wording
Interest expense – For the three months ended March 31, 2024, interest expense increased 64.2% to $244.1 million from $148.6 million in the comparable period in 2023. The increase is primarily attributable to higher interest rates and interest-bearing liabilities. Please refer to “Net Interest Income – Stifel Bancorp” below for a further discussion of the changes in net interest income.
Current wording
Interest expense – For the three months ended June 30, 2024, interest expense increased 27.5% to $234.1 million from $183.6 in the comparable period in 2023. The increase is primarily attributable to higher interest rates, partially offset by lower interest-bearing liabilities. For the six months ended June 30, 2024, interest expense increased 43.9% to $478.2 million from $332.2 million during the comparable period in 2023. The increase is primarily attributable to higher interest rates and higher interest-bearing liabilities. Please refer to “Net Interest Income – Stifel Bancorp” below for a further discussion of the changes in net interest income.
Previous wording
The following table sets forth an analysis of the effect on net interest income of volume and rate changes for the three months ended March 31, 2024 compared to the three months ended March 31, 2023(in thousands):
Current wording
The following table sets forth an analysis of the effect on net interest income of volume and rate changes for the three and six month periods ended June 30, 2024 compared to the three and six month periods ended June 30, 2023(in thousands):
Previous wording
For the three months ended March 31, 2024, interest revenue of $465.0 million was generated from average interest-earning assets of $30.2 billion at an average interest rate of 6.16%. Interest revenue of $415.2 million for the comparable period in 2023 was generated from average interest-earning assets of $29.7 billion at an average interest rate of 5.58%.
Current wording
For the three months ended June 30, 2024, interest revenue of $454.9 million was generated from average interest-earning assets of $29.2 billion at an average interest rate of 6.22%. Interest revenue of $444.9 million for the comparable period in 2023 was generated from average interest-earning assets of $29.9 billion at an average interest rate of 5.96%.
Previous wording
Interest expense represents interest on customer money market accounts, interest on time deposits, Federal Home Loan Bank advances, and other interest expense. For the three months ended March 31, 2024, interest expense of $231.1 million was incurred from average interest-bearing liabilities of $27.7 billion at an average interest rate of 3.34%. Interest expense of $137.4 million for the comparable period in 2023 was incurred from average interest-bearing liabilities of $27.1 billion at an average interest rate of 2.02%.
Current wording
Interest expense represents interest on customer money market accounts, interest on time deposits, Federal Home Loan Bank advances, and other interest expense. For the three months ended June 30, 2024, interest expense of $222.0 million was incurred from average interest-bearing liabilities of $26.8 billion at an average interest rate of 3.31%. Interest expense of $171.5 million for the comparable period in 2023 was incurred from average interest-bearing liabilities of $27.2 billion at an average interest rate of 2.52%.
Previous wording
Compensation and benefits – For the three months ended March 31, 2024, compensation and benefits expense increased 13.8% to $389.5 million from $342.4 million during the comparable period in 2023. The increase is primarily attributable to higher variable compensation expense.
Current wording
Compensation and benefits – For the three months ended June 30, 2024, compensation and benefits expense increased 11.0% to $392.9 million from $354.1 million during the comparable period in 2023. For the six months ended June 30, 2024, compensation and benefits expense increased 12.3% to $782.5 million from $696.5 million during the comparable period in 2023. The increase is primarily attributable to increased variable compensation over the comparable periods in 2023.
Previous wording
Occupancy and equipment rental – For the three months ended March 31, 2024, occupancy and equipment rental expense increased 4.7% to $43.3 million from $41.4 million during the comparable period in 2023. The increase is primarily attributable to higher data processing expense and occupancy costs associated with an increase in business activity.
Current wording
Occupancy and equipment rental – For the three months ended June 30, 2024, occupancy and equipment rental expense increased 10.3% to $44.2 million from $40.0 million during the comparable period in 2023. For the six months ended June 30, 2024, occupancy and equipment rental expense increased 7.4% to $87.5 million from $81.4 million during the comparable period in 2023. The increase is primarily attributable to higher data processing expense and occupancy costs over the comparable periods in 2023 associated with an increase in business activity.
Previous wording
Communications and office supplies – For the three months ended March 31, 2024, communications and office supplies expense increased 5.0% to $16.5 million from $15.8 million during the comparable period in 2023. The increase is primarily attributable to higher communication and quote equipment expenses and postage and shipping expenses associated with the continued growth of our business.
Current wording
Communications and office supplies – For the three months ended June 30, 2024, communications and office supplies expense increased 8.1% to $16.2 million from $15.0 million during the comparable period in 2023. For the six months ended June 30, 2024, communications and office supplies expense increased 6.5% to $32.8 million from $30.8 million during the comparable period in 2023. The increase is primarily attributable to higher communication and quote equipment expenses and postage and shipping expenses associated with the continued growth of our business.
Previous wording
Commissions and floor brokerage – For the three months ended March 31, 2024, commissions and floor brokerage expense increased 1.4% to $6.4 million from $6.3 million during the comparable period in 2023. The increase is primarily attributable to higher processing expenses, partially offset by lower clearing expenses.
Current wording
Commissions and floor brokerage – For the three months ended June 30, 2024, commissions and floor brokerage expense increased 4.3% to $6.5 million from $6.2 million during the comparable period in 2023. For the six months ended June 30, 2024, commissions and floor brokerage expense increased 2.8% to $12.9 million from $12.6 million during the comparable period in 2023. The increase is primarily attributable to higher processing expenses, partially offset by lower clearing expenses.
Previous wording
Profit margins (income before income taxes as a percent of net revenues) have decreased to 36.8% for the three months ended March 31, 2024, from 41.7% during the comparable period in 2023, primarily due to an increase in operating expenses during the quarter, partially offset by higher net revenues.
Current wording
Profit margins (income before income taxes as a percent of net revenues) have decreased to 37.3% and 37.1% for the three and six months ended June 30, 2024, respectively, from 39.6% and 40.7% during the comparable periods in 2023. Profit margins were negatively impacted by an increase in operating expenses, partially offset by higher net revenues.
Previous wording
For the three months ended March 31, 2024, Institutional Group net revenues increased 5.6% to $351.4 million from $332.6 million for the comparable period in 2023. The increase in net revenues was primarily attributable to increases in capital-raising revenues and transactional revenues, partially offset by lower advisory revenues.
Current wording
For the six months ended June 30, 2024, Institutional Group net revenues increased 21.6% to $742.1 million from $610.1 million during the comparable period in 2023. The increase in net revenues is primarily attributable to higher transactional revenues, capital-raising revenues, and advisory revenues.
Previous wording
For the three months ended March 31, 2024, fixed income institutional transactional revenues increased 24.1% to $88.6 million from $71.4 million in the comparable period in 2023. The increase in fixed income institutional transactional revenues is primarily attributable to improved market conditions and increased client activity.
Current wording
For the three months ended June 30, 2024, fixed income transactional revenues increased 58.0% to $106.7 million from $67.5 million in the comparable period in 2023. For the six months ended June 30, 2024, fixed income transactional revenues increased 40.6% to $195.3 million from $138.9 million in the comparable period in 2023. The increase in fixed income transactional revenues is primarily attributable to improved market conditions and realized trading gains over the comparable periods in 2023.
Previous wording
Investment banking– For the three months ended March 31, 2024, investment banking revenues increased 0.9% to $209.7 million from $207.7 million during the comparable period in 2023.
Current wording
Investment banking– For the three months ended June 30, 2024, investment banking revenues increased 39.8% to $227.5 million from $162.8 million during the comparable period in 2023. For the six months ended June 30, 2024, investment banking revenues increased 18.0% to $437.2 million from $370.5 million during the comparable period in 2023.
Previous wording
For the three months ended March 31, 2024, advisory revenues decreased 21.1% to $119.3 million from $151.1 million in the comparable period in 2023. The decrease is primarily attributable to lower levels of completed advisory transactions over the comparable period in 2023.
Current wording
For the three months ended June 30, 2024, advisory revenues increased 49.5% to $131.4 million from $87.9 million in the comparable period in 2023. For the six months ended June 30, 2024, advisory revenues increased 4.9% to $250.7 million from $238.9 million in the comparable period in 2023. The increase is primarily attributable to higher levels of completed advisory transactions over the comparable periods in 2023.
Previous wording
Other income – For the three months ended March 31, 2024, other income increased 58.3% to $3.6 million from $2.3 million in the comparable period in 2023. The increase is primarily attributable to rental income generated from our aircraft engine leasing business.
Current wording
Other income – For the three months ended June 30, 2024, other income increased 282.1% to $10.2 million from $2.7 million in the comparable period in 2023. For the six months ended June 30, 2024, other income increased 178.4% to $13.8 million from $5.0 million during the comparable period in 2023. The increase is primarily attributable to rental income generated from our aircraft engine leasing business.
Previous wording
Interest expense – For the three months ended March 31, 2024, interest expense increased 64.5% to $11.0 million from $6.7 million in the comparable period in 2023. The increase is primarily attributable to higher interest rates and an increase in inventory levels.
Current wording
Interest expense – For the three months ended June 30, 2024, interest expense increased 89.0% to $15.7 million from $8.3 million in the comparable period in 2023. For the six months ended June 30, 2024, interest expense increased 78.1% to $26.7 million from $15.0 million in the comparable period in 2023. The increase is primarily attributable to higher interest rates and an increase in inventory levels.
Showing the first 40 of 67 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The following table presents consolidated financial information for the periods indicated(in thousands, except percentages):
Current report — wording carried from elsewhere
The following table presents consolidated financial information for the Global Wealth Management segment for the periods indicated(in thousands, except percentages):
Current report — wording carried from elsewhere
The following tables present average balance data and operating interest revenue and expense data for Stifel Bancorp, as well as related interest yields for the periods indicated(in thousands, except rates):
Current report — wording carried from elsewhere
Due to immaterial amount of income recognized on tax-exempt securities, yields were not calculated on a tax-equivalent basis.
Current report — wording carried from elsewhere
Loans on nonaccrual status are included in average balances.
Current report — wording carried from elsewhere
Please refer to the Net Interest Income table included in “Results of Operations” for additional information on our company’s average balances and operating interest and expenses.
Current report — wording carried from elsewhere
For the six months ended June 30, 2024, interest revenue of $919.9 million was generated from average interest-earning assets of $29.7 billion at an average interest rate of 6.19%. Interest revenue of $860.0 million for the comparable period in 2023 was generated from average interest-earning assets of $29.8 billion at an average interest rate of 5.77%.
Current report — wording carried from elsewhere
The following table presents consolidated financial information for the Institutional Group segment for the periods indicated(in thousands, except percentages):
Current report — wording carried from elsewhere
For the six months ended June 30, 2024, non-interest expenses related to our acquisition strategy, included in the numbers presented in the table above, increased 10.4% to $35.9 million from $32.5 million in 2023.
Current report — wording carried from elsewhere
(a) daily monitoring of our liquidity needs at the holding company and significant subsidiary level, (b) stress testing the liquidity positions of Stifel and our bank subsidiaries, and (c) diversification of our funding sources.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Note 16 of the Notes to Consolidated Financial Statements for more information on the capital restrictions placed on our broker-dealer subsidiaries.
Previous report — wording carried elsewhere
December 31, 2023. Our core deposits are primarily comprised of money market deposit accounts, non-interest-bearing deposits, and CDs.
Previous report — wording carried elsewhere
Public Offering of Senior Notes – On July 15, 2014, we sold in a registered underwritten public offering, $300.0 million in aggregate principal amount of 4.25% senior notes due July 2024 (the “2014 Notes”). Interest on the 2014 Notes is payable semi-annually in arrears.