Loading ...
Global Do...
News & Politics
5
0
Try Now
Log In
Pricing
Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification, Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section. Earnings Summary FYE Dec 2008E 2009E 2010E Operating EPS: $3.67 $2.53 $3.76 ROAE: 8.0% 5.7% 8.2% EPS & P/E Summary 2008E 2008 Previous 2009E 2009 Previous 2010E 2010 Previous EPS: Q1 $1.46 -- $0.20 $0.20 -- -- Q2 $1.21 -- $0.64 $0.62 -- -- Q3 $0.87 -- $0.79 $0.73 -- -- Q4 $0.19 -- $0.90 $0.79 -- -- Full Year $3.67 -- $2.53 $2.34 $3.76 $3.72 P/E Ratio: 8.1 -- 11.7 -- 7.9 -- Fiscal Year Ends Dec Rating: Buy Price: $29.75 Price Target: 42 52-wk Range: $11.37-$65.50 Market Capitalization (M): $23,610 Shares Outstanding (M): 793.6 Shares Outstanding (M) fd: 793.0 Assets (M): $501,678 Book Value/Share: $25.75 Book Value Ex. FAS 115: $44.54 John Nadel Jason Weyeneth, CFA (212) 338-4717 (212) 763-8293 jnadel@sterneagee.com jweyeneth@sterneagee.com April 30, 2009 | 9 Pages METLIFE, INC. (NYSE: MET) EPS IN LINE; BVPS MODESTLY BETTER; REVENUE GROWTH CONTINUES; CAPITAL LEVELS SOLID Results Reflect Poor Equity and Capital Markets Conditions. MET’s $0.20 was in line with us, but below First Call consensus of $0.34, which included several outlier estimates. Results reflect equity market drag (higher DAC amortization, lower fees) of $0.25, and negative variable investment income “VII” (LBO, private equity, hedge funds, etc) that was $0.40 below budget. Other one-time items generally offset. Mgmt indicated normalized EPS ex. the one-timers and market pressures was $0.83. While this assumes VII returns to budgeted levels, which mgmt indicates is unlikely near-term, we are mindful that the $0.83 gives no credit to the drag on NII from continued elevated cash levels ($26b at 3/31, down only $4b from YE ’08), which we estimate drags quarterly EPS by approx. $0.15 - $0.20. BVPS Modestly Better; We Estimate About 7-10% Higher With April Credit Improvement. BVPS was $25.75, better than our $24.38 estimate and down 6% sequentially. We estimate the material improvement in credit during April likely pushed BVPS higher by 7- 10%, to roughly $28. Given this, and MET’s strong balance sheet and capital levels, we see little downside in the stock from current levels without deterioration in macro conditions (credit/equity markets). Impairments and Investment Losses High. Unlike most peers to-date in 1Q, MET took meaningful impairments and inv losses in 1Q. On a pre-tax basis, before gains, MET’s losses and OTTI of $1.6b ran at an annualized rate of 200bps. OTTI was heaviest in Hybrids at roughly $300m. A key concern with the level of losses in 1Q is that one of Moody’s recent “lines in the sand” for MET is $2b of annual a/t inv losses. MET recorded ~50% of that level in 1Q09, leaving us cautious on Moody’s near-term. That said, we doubt Moody’s acts before Gov’t Stress Test results are announced. We expect MET to pass and thus think a one-notch downgrade by Moody’s would be max hit. Life Insurance Company Report RATING: BUY METLIFE, INC. (NYSE: MET) April 30, 2009 Page 2 MET Earnings Snapshot SALI 1Q09A 1Q09A 1Q09E 1Q09E Estimated Actual vs. vs. vs. vs. 1Q08 4Q08 1Q09E 1Q09 1Q08 4Q08 1Q08 4Q08 After-tax Operating Income Group Life 119 117 113 99 -17% -15% -5% -4% Retirement & Sav ings 321 84 69 51 -84% -39% -78% -18% Non-Medical Health & Other 118 71 73 50 -58% -30% -38% 3% Institutional Business 558 272 255 200 -64% -26% -54% -6% Traditional Life 90 40 43 35 -61% -13% -53% 6% Variable and Universal Life 40 48 24 (22) -155% -146% -40% -50% Annuities 167 (204) (179) (118) -171% -42% -207% -12% Other 14 10 12 7 -50% -30% -12% 24% Total Individual Business 311 (106) (100) (98) -132% -8% -132% -6% Auto & Home 98 112 82 76 -22% -32% -16% -27% International Operations 137 94 49 159 16% 69% -65% -48% Subtotal 1,104 372 286 337 -69% -9% -74% -23% Corporate/Eliminations (33) (224) (126) (178) After-tax Operating Income 1,071 148 159 159 -85% 7% -85% 8% Operating EPS $1.46 $0.19 $0.20 $0.20 -87% 5% -87% 6% Consensus Estimate -100% -100% Weighted Av erage Diluted Shares Outstanding 732.7 793.6 809.5 810.8 11% 2% 10% 2% End of Period Common Shares Outstanding 709.4 793.6 814.1 817.8 15% 3% 15% 3% Operating Earnings ex . One-Timers $1.46 $0.19 $0.20 $0.20 -87% 5% -87% 6% Net Non-Recurring Items 0.09 (0.64) 0.00 0.06 Operating EPS ex . One-Timers $1.37 $0.83 $0.20 $0.14 -90% -83% -86% -76% Actual Reported Variable Inv estment Income 370 (120) (100) (344) -193% 187% -127% -17% Per Share Over / (Under) $0.02 ($0.22) ($0.20) ($0.40) Book Values & ROE Book Value (Excl. FAS 115) $45.09 $45.29 $45.12 $44.54 -1% -2% 0% 0% Book Value (Incl. FAS 115) $43.64 $27.33 $24.38 $25.75 -41% -6% -44% -11% Operating ROE (Excl. FAS 115) 13.4% 1.7% 1.8% 1.8% Institutional Segment Group Life Premiums 1,642 1,645 1,724 1,750 7% 6% 5% 5% Group Life Benefits/Premiums 92.4% 89.8% 92.0% 92.3% Retirement Serv ices Total Reserv es 127,163 131,890 130,854 125,565 Non-Medical & Health Premiums 1,391 1,450 1,461 1,471 6% 1% 5% 1% Non-Medical & Health Premiums/Benefits 79.1% 80.8% 82.5% 82.0% Individual Segment First Year Life Sales 245 228 227 204 -17% -11% -8% -1% Renew Life Sales/Deposits 1,595 1,770 1,577 1,588 0% -10% -1% -11% Traditional Life Benefits/Premiums 80.2% 84.1% 84.0% 86.0% VA Deposits 3,192 3,424 3,032 3,737 17% 9% -5% -11% FA Deposits 272 4,122 2,500 3,645 1240% -12% 819% -39% VA Account Balances 84,826 62,264 56,810 59,194 -30% -5% -33% -9% VA Net Flow s (92) 426 254 910 Auto & Home Premiums 745 739 767 722 -3% -2% 3% 4% Combined Ratio 90.2% 84.6% 92.0% 91.9% Source: Company Reports, SALI Estimates. METLIFE, INC. (NYSE: MET) April 30, 2009 Page 3 One-Timers. In the chart below, we highlight the one-time items, which include the impact of equity market drag (higher DAC amortization, lower fee revenues) and substantially lower variable investment income. Included is the segment level impact. MET 1Q09 UNUSUAL ITEMS Auto & Corp. & ($millions, after-tax) Trad. V/UL Annuity Grp. Life R&S Health Home Int'l Other $mm Per Share Positive Contributors: Favorable Prior Year Reserve Development - - - - - - 17 - - 17 $0.02 Pension Adjustment - - - 3 3 4 - - - 10 $0.01 Argentina Reserve Release - - - - - - - 95 - 95 $0.12 Negative Contributors: Lower than '09 Plan Variable Investment Income 22 20 21 8 141 30 - - 79 321 $0.40 Higher DAC and other equity market-related - 21 183 - - - - - - 204 $0.25 Catastrophes Above Budgeted Levels - - - - - - 8 - - 8 $0.01 DAC Adjustments Migrating Systems (3) 17 - - - - - - - 14 $0.02 Tax Restructturing Item in Mexico - - - - - - - 34 - 34 $0.04 Fx Drag (Peso & Won primarily) - - - - - - - 28 - 28 $0.03 Severance and OpEx Items - - - - - - - - 23 23 $0.03 Net Contribution to Earnings (19) (58) (204) (5) (138) (26) 9 33 (102) (510) ($0.63) Net Contribution to EPS ($0.02) ($0.07) ($0.25) ($0.01) ($0.17) ($0.03) $0.01 $0.04 ($0.13) Source: SALI Estimates, Company Management Individual Business Institutional Business Total Amount Below we highlight the impact of unusual items, excluding the drag from equity markets and lower variable investment income, by segment relative to our estimate. Overall, we estimated lower VII would drag EPS by $0.20 in 1Q09 versus the $0.40 drag actually reported. In addition, we estimated higher DAC amortization and other equity-related items would drag EPS in 1Q09 by $0.45 versus actual drag of $0.25. Net/net, our overestimation of the hit from equity markets was offset by our underestimation of the hit from lower VII. SALI vs. Reported Results SALI Est. Reported Rep. ex. Unusuals ($millions, after-tax) [A] [B] [C] $mm % Explanation Trad Life 43 35 32 (11) -25% Higher expenses V/UL 24 (22) (5) (29) -121% Underestimated higher DAC amortization Annuities (179) (118) (118) 61 -34% Overestimated higher DAC amortization Other 12 7 7 (5) -43% Individual Busines (100) (98) (84) 16 -16% Group Life 113 99 96 (17) -15% Lower fees on S/A related group life contracts R&S 69 51 48 (21) -30% Lower NII driven by lower variable inv income N/M Health 73 50 46 (27) -37% Lower NII driven by lower variable inv income Institutional Business 255 200 190 (65) -25% Auto & Home 82 76 67 (15) -19% Lower premiums International 49 159 126 77 159% Better revenues and expense levels Corporate (126) (178) (155) (29) 23% Lower NII driven by lower variable inv income Total Oper. Earnings 159 159 144 (15) -10% Diluted Shares 809.5 810.8 810.8 1.3 0.2% EPS $0.20 $0.20 $0.18 ($0.02) -9.8% Source: FPK Estimates, Company Management Difference [C-A] Modest Increase to EPS Estimates. Given the solid rebound in the S&P during April, we expect the majority of the 1Q09 $0.25 drag from the equity market to not recur looking out (this could obviously change with another market downturn). In addition, while we do not expect VII to rebound to budgeted levels near-term, we think it’s likely to improve from the awful level of 1Q09. Further, we expect continued benefits from ongoing expense initiatives to positively impact results. Thus, we think our forward estimates have some modest upside, though they remain highly sensitive to capital markets through DAC and VII. Our 2009 EPS bumps up to $2.53 from $2.34 and our 2010 moves to $3.76 from $3.72 (less impact since we already embedded some meaningful recovery previously). METLIFE, INC. (NYSE: MET) April 30, 2009 Page 4 Reducing Price Target to $42 from $49. We are reducing our price target from $49 to $42, which equates to a 50/50 blend of 1.20x 1Q09 BVPS incl. and excl. FAS 115. While our price target equates to a very high 16.5x P/E on our ’09 EPS of $2.53, we estimate that ’09 EPS is roughly 50% below a normalized level. Our $2.53 reflects a very modest 5.7% operating ROE for 2009, roughly one-half the level (conservatively) we think MET would normally achieve during a more normal environment. Thus, while the P/E appears rich currently, we believe it’s reasonable when viewed against conservative, normalized EPS. Expect Commentary on Statutory Results and RBC (Directionally) on Conference Call. While mgmt would not provide us an estimate of RBC at 1Q09, they were willing to indicate that preliminary Statutory results indicate positive earnings in 1Q (we expect Stat to exceed GAAP near-term since Stat does not exhibit drag from higher DAC amortization). This, combined with modest shrinkage of the balance sheet, should serve to leave RBC relatively unchanged from YE ’08 levels of 398%. Annuity Sales Very Strong; Surrender Rates Continue to Come Down. Both Fixed and Variable Annuity sales were strong in the quarter. The former we expected, the latter is a bit of a surprise. FA sales were a whopping $3.6 billion, down modestly from the $4.1 billion in 4Q08, but continuing a trend of VERY elevated levels. Mgmt indicated that despite dropping crediting rates several times during the quarter, they continued to see strong inflows, largely through the independent channel (flight to quality continues, in our view). VA sales totaled $3.7 billion, up 9% sequentially and 17% YoY. We suspect we could be seeing the results of distribution aggressively pushing older VA products in advance of much-advertised product revisions that will result in both lower benefits and higher consumer costs. Surrender rates continued to come down – FA annualized surrender rate was 11.4%, down from roughly 14% in 4Q08; and VA annualized surrenders fell to 8.9% down from 10% level in 4Q08. Quick Thought On Impairments and Investment Losses. We note that several insurers have reported significantly lower tax benefits from investment losses this quarter, or have generated investment gains alongside losses to ensure full tax credit for the losses. We note that MET should not suffer from this, largely owing to the significant investment gains generated over the past several years, most notably from well-time real estate property sales. As such, we continue to expect that MET will be able to take full tax credit of 35% for losses generated for the foreseeable future. Modest Reduction in Securities Lending. While spreads probably remain very good on securities lending activity, helping to provide a modest buffer in variable investment income against negative LBO, Private Equity, and Hedge Fund returns, the balance of securities lending dropped further in 1Q09. Securities on loan totaled roughly $24.3 billion, down 22% from $31.1 billon at YE ’08. While this clearly reduces risk and leverage on the balance sheet (assets / equity), it does leave VII improvement almost completely dependent upon capital markets improvement moving forward. Conference Call. Mgmt will host a call at 8:00am ET on Friday, May 1st. Dial-in is 612- 326-1003. METLIFE, INC. (NYSE: MET) April 30, 2009 Appendix Section, Page I APPENDIX SECTION Company Description: MetLife, Inc's principal activity is to provide insurance and financial services to individuals and institutional customers. The Group offers life insurance, annuities, automobile and property insurance and mutual funds to individuals, group insurance, reinsurance, as well as retirement and savings products and services to corporations and other institutions. The Group is organized into five business segments: Institutional, Individual, Auto & Home, International & Reinsurance, and Corporate & Other. The Group has international operations in Latin America and Asia. IMPORTANT DISCLOSURES: Price Target Risks & Related Risk Factors: Investment risks associated with the achievement of the price target include, but are not limited to, a company's failure to achieve Sterne, Agee & Leach, Inc. earnings estimates and/or book value estimates; unforeseen macroeconomic and/or industry events that adversely affect asset values, interest rates, or foreign currency rates; changes in investor sentiment regarding the specific company or industry; the company's ability to recruit and retain competent personnel; and adverse market conditions. For a complete discussion of the risk factors that could affect the market price of a company's shares, refer to the most recent Form 10-Q or 10-K that a company has filed with the Securities Exchange Commission. Valuation Methodology: Methodology for assigning ratings and target prices includes qualitative and quantitative factors including an assessment of business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition; and expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry or company-specific occurrences. Sterne, Agee & Leach, Inc., analysts base valuations on a combination of forward looking earnings multiples. Sterne, Agee & Leach, Inc., believes this accurately reflects the strong absolute value of earnings, the growth rate, the inherent profitability, and adjusted balance sheet factors. Additional company-specific valuation methodology is available through Sterne, Agee & Leach, Inc. Regulation Analyst Certification: I, John Nadel, hereby certify the views expressed in this research report accurately reflect my personal views about the subject security(ies) or issuer(s). I further certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by me in this report. Sterne, Agee & Leach, Inc. Disclosure Legend as of April 30, 2009: Company Disclosure(s) – See Below MetLife, Inc. (MET - NYSE): 6 1. Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company. 2. Sterne, Agee & Leach, Inc. has, over the past 12 months, managed or co-managed a public securities offering or provided other investment banking services for the subject company. 3. Sterne, Agee & Leach, Inc. has various security accounts open for the subject company. 4. Sterne, Agee & Leach, Inc. provides administration for 401(k) plans for the subject company. 5. Sterne Agee Financial Services, Inc. has clearing agreements with the subject company. 6. The analyst who wrote this report owns a position in the subject company. Sterne, Agee & Leach, Inc.’s research analysts receive compensation that is based upon various factors, including Sterne, Agee & Leach, Inc.’s total revenues, a portion of which is generated by investment banking activities. Definition of Investment Ratings: BUY: We expect this stock to outperform the industry over the next 12 months. NEUTRAL: We expect this stock to perform in line with the industry over the next 12 months. SELL: We expect this stock to underperform the industry over the next 12 months. RESTRICTED: Restricted list requirements preclude comment. METLIFE, INC. (NYSE: MET) April 30, 2009 Appendix Section, Page II Ratings Distribution: Of the securities rated by Sterne, Agee & Leach, Inc., as of March 31, 2009, 33.3% had a BUY rating, 58.3% had a NEUTRAL rating, 8.3% had a SELL rating, and 0% was RESTRICTED. Within those ratings categories, 1.25% of the securities rated BUY, 1.43% rated NEUTRAL, 0% rated SELL, and 0% rated RESTRICTED received investment banking services from Sterne, Agee & Leach, Inc., within the 12 months preceding March 31, 2009. ADDITIONAL INFORMATION AVAILABLE UPON REQUEST: Contact Robert Hoehn at 1-212-338-4731. Other Disclosures: Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Sterne, Agee & Leach, Inc., its affiliates, or one or more of its officers, employees, or consultants may, at times, have long or short or options positions in the securities mentioned herein and may act as principal or agent to buy or sell such securities. Copyright © 2009 Sterne, Agee & Leach, Inc. All Rights Reserved. Price Chart(s): Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com) STERNE, AGEE & LEACH, INC. Founded in 1901, Sterne Agee has been providing investors like you with high-quality investment opportunities for over a century. During the early years, our founders prominently established themselves in the financial securities industry in the southeastern United States. Today, we have expanded to serve all regions of the country. Sterne, Agee is headquartered in Birmingham, Alabama with offices in 22 states including Alabama, Arkansas, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, New Jersey, New York, North Carolina, Pennsylvania South Carolina, Tennessee, Texas, Virginia, and Wisconsin. Sterne Agee is one of the largest independent firms in the country. Sterne, Agee & Leach, Inc. is a division of Sterne Agee Group, Inc., which also includes The Trust Company of Sterne, Agee & Leach, Inc.; Sterne Agee Asset Management, Inc.; Sterne Agee Clearing, Inc.; and Sterne Agee Financial Services, Inc.—www.sterneagee.com EQUITY CAPITAL MARKETS ADMINISTRATION Ryan Medo Managing Dir., Eq. Cap. Mkts. (205) 949-3623 Robert Lake Vice President (205) 949-3624 Karen Bell Assistant Vice President (205) 380-1766 David Lee Director, Equity Products (205) 949-3689 Chuck Carlisle Sr. Portfolio Analyst (205) 949-3571 EQUITY RESEARCH Robert Hoehn Director of Research (212) 338-4731 Basic Materials Mark Connelly Mng. Dir. (212) 338-4712 Ashish Gupta Associate (212) 338-4721 China Internet & Media James Lee SVP, Sr. Analyst (617) 794-7851 Jiawen Zhou Analyst (617) 281-6497 Yan Chao Associate (205) 949-3622 Consumer Apparel Retailing & Toys Margaret Whitfield SVP, Sr. Analyst (973) 519-1019 Jennifer Milan VP, Analyst (212) 763-8211 Footwear & Apparel Sam Poser SVP, Sr. Analyst (212) 763-8226 Kenneth M. Stumphauzer Analyst (212) 763-8287 Interactive Entertainment Arvind Bhatia, CFA SVP, Sr. Analyst (214) 571-4401 Luke Shagets Analyst (214) 571-4424 Leisure & Entertainment David Bain Mng. Dir. - Gaming (949) 721-6651 Sherry Yin Associate (949) 721-6651 Energy Oilfield Services & Equipment David S. Havens SVP, Sr. Analyst (212) 763-8238 Karl Sowislo Analyst (212) 338-4732 Exploration & Production J. David Anderson, PE, CFA Mng. Dir. (212) 338-4749 Adam Aron VP, Associate (212) 338-4748 Financial Services Banks & Thrifts James M. Schutz Dir. of FIG (205) 949-3617 John Schutz Associate (205) 949-3538 Adam Barkstrom, CFA Mng. Dir. (800) 906-0577 William R. Griffin, CFA Analyst (800) 621-8635 Matthew Kelley Mng. Dir. (207) 699-5800 Financial Services (cont.) Mike I. Shafir VP, Sr. Analyst (212) 763-8239 Matthew Breese Associate (212) 763-8235 Edward D. Timmons VP, Sr. Analyst (800) 203-5332 Brett Rabatin, CFA SVP, Sr. Analyst (877) 457-8625 Peyton Green Mng. Dir. (877) 492-2663 Michael Lipman Analyst (615) 269-7323 Kenneth James Analyst (615) 760-1474 Life Insurance John M. Nadel Mng. Dir. (212) 338-4717 Jason Weyeneth, CFA Analyst (212) 763-8293 Mortgage Finance & Specialty Finance Henry J. Coffey, Jr., CFA SVP, Sr. Analyst (615) 760-1472 John Sites, CFA Associate (615) 760-1470 Global Industrial Infrastructure (GII) Agriculture, Construction & Mining Equipment Lawrence T. De Maria, CFA SVP, Sr. Analyst (212) 338-4704 Ben Elias, CFA VP, Sr. Analyst (212) 338-4706 Building, Power & Water Infrastructure Michael J. Coleman, CFA VP, Sr. Analyst (212) 338-4718 Engineering and Construction Chase Jacobson VP, Sr. Analyst (212) 338-4753 Multi-Industry Nicholas P. Heymann Mng. Dir. (212) 338-4703 Samuel H. Eisner Analyst (212) 338-4705 Immacolata Arlia Associate (212) 338-4762 Jordan Calabrese Associate (212) 338-4729 Restaurants Lynne Collier Mng. Dir. (214) 571-4402 Phillip May Associate (504) 636-4953 Administration Marianne Pence Mgr., Res. Admin. (205) 949-3618 Nathan Mitchell Editor (205) 949-3635 Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com) SALES & TRADING ATLANTA Adam Aspes (404) 812-3068 Adam Kramer (404) 814-3902 Joe Maloney (404) 814-3942 Jamie Pennington (404) 814-3948 John T. Riley (404) 814-3966 BIRMINGHAM Gary Hagstrom (205) 380-1782 Sam Haskell (205) 380-1781 Scott Hughen (205) 380-1764 Claude Preston (205) 380-1762 Amber Spitzer (205) 380-1761 BOSTON Richard Gill (617) 478-5006 Tom Goode (617) 478-5008 Ted Sheehan (617) 478-5003 Mike Roncone (617) 478-5001 Nicholas White (617) 478-5002 CHICAGO Bill Channell (312) 525-8425 Scott Hallermann (312) 525-8421 Scott Hootman (312) 525-8426 Robert Hurley (312) 525-8440 Erica Mullins (312) 525-8423 Vesna Radovic (312) 525-8429 Dan Roesner (312) 5258433 Curt Thompson (312) 525-8427 DALLAS Jennifer Elkins (214) 571-4447 Dan Griffith (214) 571-4444 Candace Martin (214) 571-4433 Bob Nasi (214) 571-4417 Steve Pokorny (214) 571-4400 John Schwalenberg (214) 571-4410 MILWAUKEE Bob Butendorf (414) 918-7956 Vince Curatola (414) 918-7958 Paul Kujawa (414) 918-7954 Kathy Rosploch (414) 918-7955 Rob Wirthlin (414) 918-7957 MINNEAPOLIS John Regan III (952) 841-6408 NEW ORLEANS Henry Corder (504) 636-4921 Patrick Donnelly (504) 636-4902 Cheryl Grabert (504) 636-4911 John Regan, Jr. (850) 650-5676 NEW YORK Jason Barber (212) 763-8219 Matt Boskin (212) 763-8247 Adam Cavise (212) 763-8292 Mike Cline (212) 763-8268 Tom Criscoula (212) 338-4719 Noel Cueto (212) 763-8251 Enrico DeMatt (212) 338-4724 Geri DeVito (212) 763-8242 Eric Dusansky (212) 763-8231 Mike Flanagan (212) 763-8282 Rich Gallagher (212) 763-8260 Brian Haise (212) 763-8206 Jeff Hood (212) 490-1453 Alex Jones (212) 338-4701 Carey Kaufman (212) 763-8274 Konrad Krill (212) 763-8218 Robert McGuire (212) 763-8236 Brian McIlravy (212) 763-8258 Adam Merlo (212) 763-8232 John Molster (212) 763-8210 Jake Morton (212) 763-8261 Matt O’Kelly (212) 763-8227 David O’Shea (212) 763-8260 Jon Palan (212) 763-8225 Bruce Rae (212) 763-8271 Jon Schenk (212) 763-8221 Chuck Schroeder (212) 763-8264 Jason Scott (212) 763-8215 Miko Tam (212) 763-8252 Scott Tashman (212) 763-8256 Ray Wardell (212) 763-8272 SAN FRANCISCO Ravi Sadarangani (415) 954-7125 Tom Cervantez (415) 954-7115 INVESTMENT BANKING Mark Behrman, Mng Dir, Head of Inv Banking (212) 763-8286 Kimberlee Taylor, Admin. Asst. (212) 338-4715 FINANCIAL INSTITUTIONS GROUP Michael J. O’Boyle, Mng. Dir. (205) 949-3592 D. Timothy Speegle, SVP (205) 380-1720 John McCrory, SVP (205) 949-3664 NON-BANK FINANCIALS Norman Chaleff, SVP (212) 763-8263 Jeffrey W. Prochnow, CFA, SVP (402) 778-5054 NON-FINANCIALS John Bolebruch, Mng. Dir. – Industrials (212) 338-4716 Richard Cunniffe, SVP – Industrials (212) 338-4713 W. Barry McRae, Mng. Dir. - Energy (205) 949-3555 Everett Titus III, Mng. Dir – Energy (908) 730-7882 Dru Walsh, Associate - Energy (205) 949-3650 Will Brooke, Analyst (212) 763-8278 EQUITY SYNDICATE Craig B. Jampol, Mng. Dir. (212) 338-4708 Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com) LOCATIONS Corporate Headquarters 800 Shades Creek Parkway Suite 700 Birmingham, AL 35209 (205) 949-3500 (800) 239-2408 (205) 802-1414 fax OTHER LOCATIONS 3475 Lenox Road Suite 800 Atlanta, GA 30326 (404) 365-9630 (404) 812-3097 fax 265 Franklin Street Suite 310 Boston, MA 02110 (617) 478-5000 (800) 836-4616 (617) 443-0310 fax 123 N. Wacker Drive Suite 1250 Chicago, IL 60606 (312) 525-8440 (800) 966-0815 (312) 525-8438 fax 1201 Elm Street Suite 4241 Dallas, TX 75270 (214) 571-4420 (800) 666-9174 (214) 571-4445 fax 706 E. Washington Street Greenville, SC 29601 (864) 233-6630 (864) 233-6630 fax 411 East Wisconsin Ave Suite 1260 Milwaukee, WI 56202 (414) 918-7954 (866) 827-8625 (414) 226-0267 fax 7701 France Ave. South Suite 200 Minneapolis, MN 55435 (952) 841-6410 (800) 949-4102 3100 West End Avenue Suite 930 Nashville, TN 37203 (615) 269-7323 (615) 269-9223 639 Loyola Ave Suite 200 New Orleans, LA 70113 (504) 299-1021 (888) 978-3763 (504) 299-0956 fax 2 Grand Central Tower 140 East 45th Street 18th Floor New York, NY 10017 (212) 763-8224 (800) 966-0814 (212) 763-8201 fax 620 Newport Center Dr. Suite 1100 Newport Beach, CA 92660 (949) 721-6651 (949) 721-6652 fax 2 Union Street Suite 403 Portland, ME 04101 (207) 699-5800 (207) 699-5888 fax 5609 Patterson Avenue Suite B Richmond, VA 23226 (804) 521-3224 (804) 521-3199 fax 1001 Craig Road Suite 330 St. Louis, MO 63146 (314) 872-2125 (314) 872-2126 fax 1750 Montgomery Street Suite 134 San Francisco, CA 94111 (415) 954-7125 (415) 391-7784 fax
