Stifel Financial (SF) 8-K Regulation FD Disclosure

Stifel Financial Corp.

September 2014

Exhibit 99.1

2

Disclaimer

Forward-Looking

Statements

This

presentation

may

contain

“forward-looking

statements”

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995

that

involve

significant

risks,

assumptions,

and

uncertainties,

including

statements

relating

to

the

market

opportunity

and

future

business

prospects

of

Stifel

Financial

Corp.,

as

well

as

Stifel,

Nicolaus

&

Company,

Incorporated

and

its

subsidiaries

(collectively,

“SF”

or

the

“Company”).

These

statements

can

be

identified

by

the

use

of

the

words

“may,”

“will,”

“should,”

“could,”

“would,”

“plan,”

“potential,”

“estimate,”

“project,”

“believe,”

“intend,”

“anticipate,”

“expect,”

and

similar

expressions.

In

particular,

these

statements

may

refer

to

our

goals,

intentions,

and

expectations,

our

business

plans

and

growth

strategies,

our

ability

to

integrate

and

manage

our

acquired

businesses,

estimates

of

our

risks

and

future

costs

and

benefits,

and

forecasted

demographic

and

economic

trends

relating

to

our

industry.

You

should

not

place

undue

reliance

on

any

forward-looking

statements,

which

speak

only

as

of

the

date

they

were

made.

We

will

not

update

these

forward-looking

statements,

even

though

our

situation

may

change

in

the

future,

unless

we

are

obligated

to

do

so

under

federal

securities

laws.  

Actual

results

may

differ

materially

and

reported

results

should

not

be

considered

as

an

indication

of

future

performance.

Factors

that

could

cause

actual

results

to

differ

are

included

in

the

Company’s

annual

and

quarterly

reports

and

from

time

to

time

in

other

reports

filed

by

the

Company

with

the

Securities

and

Exchange

Commission

and

include,

among

other

things,

changes

in

general

economic

and

business

conditions,

actions

of

competitors,

regulatory

and

legal

actions,

changes

in

legislation,

and

technology

changes.

Use

of

Non-GAAP

Financial

Measures

The

Company

utilized

non-GAAP

calculations

of

presented

net

revenues,

compensation

and

benefits,

non-compensation

operating

expenses,

income

before

income

taxes,

provision

for

income

taxes,

net

income,

compensation

and

non-compensation

operating

expense

ratios,

pre-tax

margin

and

diluted

earnings

per

share

as

an

additional

measure

to

aid

in

understanding

and

analyzing

the

Company’s

financial

results

for

the

three

and

six

months

ended

June

30,

2014.

Specifically,

the

Company

believes

that

the

non-GAAP

measures

provide

useful

information

by

excluding

certain

items

that

may

not

be

indicative

of

the

Company’s

core

operating

results

and

business

outlook.

The

Company

believes

that

these

non-

GAAP

measures

will

allow

for

a

better

evaluation

of

the

operating

performance

of

the

business

and

facilitate

a

meaningful

comparison

of

the

Company’s

results

in

the

current

period

to

those

in

prior

periods

and

future

periods.

Reference

to

these

non-GAAP

measures

should

not

be

considered

as

a

substitute

for

results

that

are

presented

in

a

manner

consistent

with

GAAP.

These

non-GAAP

measures

are

provided

to

enhance

investors'

overall

understanding

of

the

Company’s

financial

performance.

Stifel Overview

4

Stifel –

Premier Investment Bank and Full-Service Investment Firm

Stifel

at a Glance

Net Revenue -

$1,973 million (2013)

Global Wealth Management (GWM)

Net Revenue -

$1,117 million (2013)

Private Client

Stifel Bank & Trust

Margin and Securities-based Lending

Asset Management

Institutional Group (IG)

Net Revenue -

$861 million (2013)

Equity & Fixed Income Capital Raising

M&A Advisory / Restructuring

Institutional Equity and Fixed Income Brokerage

Independent Research

(1)

Assets / equity (as adjusted).

(2)

As of 6/30/2014. 

(3)

As of 9/9/2014.

(4)

Insider ownership percentage includes all fully diluted shares, units outstanding and options outstanding, as of 9/8/2014.

Low

leverage

(3.7x)

(1)

(2)

,

$2.2

billion

stockholders’

equity

(2)

and

$3.1

billion

market

capitalization

(3)

34%

Insider

ownership

aligns

employees'

interests

with

other

shareholders

(4)

Over

5,880

associates

(2)

Balanced business mix (54% GWM / 46% IG) (1H 2014 net revenues)

Over

2,000

financial

advisors

(2)

with

$173

billion

in

combined

client

assets

(2)

–

national

presence

Largest

U.S.

equity

research

platforms

with

over

1,000

stocks

under

coverage

(2)

Broad

investment

banking

and

institutional

sales

and

trading

capabilities

–

domestic

and

international

5

2005

Legg Mason’s

Capital Markets

Division  Acquired

2009

56 UBS Private Client

Branches Acquired

2010

Thomas Weisel

Partners Merger

2007

Ryan Beck

Acquisition

2011

Stone & Youngberg

Acquisition

2013

Keefe, Bruyette &

Woods

Acquisition

2012

#1 Ranked in

FT/StarMine

Award*

2008

#1 Ranked in FT/StarMine

Stock Picking

2010

#1 Ranked in both

FT/StarMine & WSJ

Best on the Street

Significant Growth, Unwavering Commitment

2013

Knight Capital

Group’s Fixed

Income Division

2013

#2 Ranked in

FT/StarMine

Award

2013

Acacia Bank &

Ziegler Lotsoff

2007

Acquired Stifel Bank

& Trust

2014

De La Rosa,

Oriel Securities

& LMIC

Stifel Overview

2012

Miller Buckfire

2008

Butler Wick

6

Building Scale

Growth Focused

Investment Banking

Research, Sales and Trading

Achieved cost efficiencies

July 2010

Private Client

Revenue production has exceeded

expectations

October 2009

Significant enhancement to our

Capital Markets business

Achieved cost savings objectives

December 2005

Bank holding company

Financial holding company

Grown assets from ~ $100M to $5.0B

April 2007

Private Client

Public Finance

Seamless & efficient integration

December 2008

Fixed Income IB

Fixed Income Sales and Trading

Private Client

Seamless & efficient integration

October 2011

FIG Investment Banking

FIG Sales and Trading / Research

Exceeded expectations

February 2013

56 UBS Branches

Private Client

Capital Markets

Achieved cost savings objectives

February 2007

Restructuring advisory

December 2012

Knight

Fixed Income

Fixed Income Sales and

Trading –

U.S. & Europe

Fixed Income Research

July 2013

Asset Management

Over $4 billion in assets

November 2013

Clean portfolio of 1-4 family

residential mortgages

October 2013

Each merger has been accretive to Stifel and retention remains high

California-based investment

bank and bond underwriter

April 2014

UK-based full service

investment bank

July 2014

LMIC -

Customized investment

advisory and trust services

Pending: June 2014

7

Bulge Bracket

Boutique

LARGEST

provider of U.S. equity research

2     LARGEST

Equity trading platform in the U.S.

outside of the Bulge Bracket firms

(1)

FULL SERVICE

investment banking with

expertise across products and industry sectors

TOP TEN

retail platform

Leading broker-dealer providing wealth management and

institutional services to consumers and companies

Stifel’s Differentiated Value Proposition: Growth, Scale and Stability

Institutional

Wealth Management

Source: SIFMA and publicly available information for U.S. brokerage networks.

Note:  Includes investment banks only. .

(1)

Based on 2013 U.S. trading volume per Bloomberg.

(2)

Represents Wealth Management Americas segment only.

(3)

Excludes 3,555 independent contractors and 334 independent advisor representatives.

Retail Brokerage by Number of Brokers

Size  / scale

Large distribution

Trading

Retail

Issues

Lack of focus

Banker turnover

Lack of commitment

Research indifference

Lack of growth investors

Firm focus

Good research

Growth investor access

Issues

Financial / firm stability

Trading support

Few with retail

Size  / scale

Firm focus

Stability (financial & personnel)

Large distribution

Trading

Outstanding research

Retail

Rank

Firm

Brokers

1

Morgan Stanley Wealth Management

16,426

2

Bank of America Merrill Lynch

15,624

3

Wells Fargo Securities

15,146

4

UBS

(2)

7,000

5

Raymond James

(3)

6,202

6

Stifel

2,085

7

RBC Capital Markets

1,900

8

Oppenheimer & Co Inc

1,390

9

JPMorgan

800

10

Deutsche Bank

772

11

Janney Montgomery Scott

725

12

Robert W Baird & Co

709

13

Sterne Agee & Leach Inc

560

14

Stephens Inc.

526

15

Southwest Securities Inc

464

16

Canaccord Genuity Corp

425

17

Wedbush Securities Inc

400

18

DA Davidson & Co

320

19

Barclays Capital

250

20

Lazard Capital Markets

235

nd

8

Well-diversified, low risk business model with balanced retail

and institutional exposure

8

Unburdened by capital constraints

Low leverage business model and conservative risk management

Limited balance sheet risk

Stable

wealth

management

business

is

augmented

by

profitable

and

growing

institutional

business

Drive revenue synergies by leveraging the wealth management and institutional business

Note: Net revenues and operating contribution percentages excludes the Other segment. Refer to slide 30 for additional segment information.

Net Revenues

6M 2013

6M 2014

Core Operating Contribution

6M 2013

6M 2014

Balanced business model facilitates growth in all market environments

9

Demonstrated ability to grow through all market environments

while maintaining solid profitability

(1)

CAGR reflects years 2006 to 2013.

CAGR: 24%

Core

Net

Revenues

($MM)

(1)

Core

Net

Income

($MM)

(1)

Financial Crisis

Financial Crisis

CAGR: 24%

Segment Overview –

Global Wealth Management

11

(1)

Includes Independent Contractors.

(2)

CAGR reflects years 2006 to 2013.

Global Wealth Management

Provides Securities Brokerage Services and Stifel Bank Products

CAGR: 29%

CAGR: 25%

Grown from 600+ financial advisors in 2005 to over

2,000

(1)

financial advisors currently

Proven organic growth and acquirer of private client

business

Retail investors are generally mid-

to long-term buyers

Goal of providing price stability and support to the

institutional order book

Strategy of recruiting experienced advisors with

established client relationships

Expanding U.S. footprint

Net Revenues ($MM)

(2)

Core Operating Contribution ($MM)

(2)

Overview

National Presence

12

(1)

Includes Independent Contractors.

Global Wealth Management

Key Operating Metrics

Accounts

Brokers

(1)

Assets Under Management ($MM)

Branches

13

13

Note: Data as of 6/30/14

(1)

Average interest earning assets as of 6/30/14.

(2)

Non-agency MBS makes up less than 1% of Investment Portfolio.

(3)

Commercial Real Estate make up less than 1% of the loan portfolio.

Interest Earnings Assets

(1)

Investment Portfolio

Total: $5.1 Billion

Total: $2.9 Billion

(2)

Stifel Bank and Trust

Total: $1.9 Billion

(3)

Loan Portfolio (Gross)

Acquired FirstService Bank, a St. Louis-based,

Missouri-chartered commercial bank, in April 2007

Stifel Financial became a bank holding company and

financial services holding company

Balance sheet growth with low-risk assets

Funded by Stifel Nicolaus client deposits

Maintain high levels of liquidity

Overview

Strength of Brokerage Position

Offers banking products (securities based loans and

mortgage loans) within the GWM client base,

including establishing trust services

Built-in source of business

High net worth clients

Highly efficient due to lack of “brick and mortar”

deposit focused facilities

Growing Asset Management Capabilities

$9 Billion

$5 Billion

$1.5 Billion

$1 Billion

$1 Billion

$700 Million

Assets

Location

Baltimore, New York,

Cincinnati, Philadelphia

Chicago / Milwaukee

Baltimore, MD

St. Louis, MO

Portland, OR

Florham Park, NJ

Segment

Overview

–

Institutional

Group

16

(1)

Based

on

2013

U.S.

trading

volume

per

Bloomberg.

(2)

Includes

Thomas

Weisel

historical

investment

banking

revenues

for

years

2006

through

September

30,

2010.

(3) 2012 includes realized and unrealized gains on the Company’s investment in Knight Capital Group, Inc. of $39.0 million.

Institutional Group

Net

Revenues

($MM)

(2)(3)

Fixed

Income

Brokerage

+

Investment

Banking

Overview

Provides securities brokerage, trading, research,

underwriting and corporate advisory services

Largest provider of U.S. Equity Research

2     largest Equity trading platform in the U.S.

outside

of

the

Bulge

Bracket

(1)

Full Service Investment Bank

Comprehensive Fixed Income platform

Equity

Brokerage

+

Investment

Banking

(2)

nd

17

U.S.

Equity

Research

Coverage

(1)

Coverage

Balanced

Across

All

Market

Caps

(3)

Institutional Group –

Research

Stifel Research Highlights

17

Largest U.S. Equity Research Platform

Largest provider of U.S. Equity Research

Largest provider of U.S. Small Cap Research

110 analyst across 12 sectors

Largest provider of Financial Services coverage

Ranked

#2

in

the

FT/Starmine

2013

Survey

(2)

Stifel analysts ranked #1 in Earnings Estimators

among 3,562 analysts

(1)

Source: StarMine rankings as of 9/10/14 for US Domiciled stocks with a rating. Does not include Closed End Funds.

(2)

Ranking includes both Stifel and KBW.

(3)

Small Cap includes market caps less than $1 billion; Mid Cap includes market caps less than $5 billion.

Research coverage distribution as of 8/20/14.

Rank

Firm

Overall

Mid Cap

Small Cap

1

Stifel / KBW

1,415

510

457

2

BofA Merrill Lynch

1,166

449

147

3

Goldman Sachs

1,082

375

87

4

JPMorgan

1,049

374

144

5

Wells Fargo Securities, Llc

1,022

386

155

6

Raymond James

1,002

373

277

7

Credit Suisse

935

288

151

8

Barclays

927

317

85

9

Morgan Stanley

919

285

85

10

Deutsche Bank Securities

890

264

121

11

Citi

884

285

107

12

RBC Capital Markets

884

300

129

13

Jefferies & Co.

851

278

182

14

UBS

755

220

62

15

Robert W. Baird & Co., Inc.

695

240

154

16

Morningstar, Inc.

641

127

17

17

William Blair & Company, L.L.C.

592

198

169

18

BMO Capital Markets

588

176

96

19

Cowen And Company

566

155

157

20

Keybanc Capital Markets

548

256

106

18

Institutional Equity Sales

Equity Trading

Institutional Group –

Equity Sales and Trading

18

Extensive Distribution Network

Powerful Platform Spanning North America and Europe

100 person sales force, commission based

Experts in small and mid cap growth and value

Team based sales model with 2-4 sales people per

account

Team leaders have an average of 15 years experience

Offices in all major institutional markets in North

America & Europe

Accounts range from large mutual funds to small

industry focused investors

Managed over 780 non-deal roadshow days in 2013

Extensive experience with traditional and overnight

corporate finance transactions

53 sales traders located in

Baltimore, New York, Boston, Dallas, San

Francisco, and London

24 position traders covering each major industry

8 specialized traders focused on: Option Trading,

Convertible and ETF Trading

Profitable model with advantages of scale

Relationships with over 3,500 institutional accounts globally

Active daily market maker in over 3,700 stocks

Traded over 11.7 billion shares in 2013

Complete coverage of North America and Europe for North American

listed equities

Major liquidity provider to largest equity money management complexes

Multi-execution venues: high-touch, algorithms, program trading, and direct market access

Dedicated convertible sales, trading, and research desk

Overview

Strong Fixed Income Brokerage Capabilities

Institutional Group –

Fixed Income

Client Distribution

(1)(2)

Platform & Products

(1)

Client Distribution is as of 7/28/2014. 

(2)

Other

category

includes:

Credit

Union,

Corporation,

Hedge

Fund,

Pension

Fund,

Trust

Company,

Foundation,

Endowment,

University

&

Non-Profit.

19

Comprehensive platform

85 traders with annual client trade volume

approaching $400 billion

27-person Fixed Income Research and Strategy

Group

7 person US Corporate Debt Capital Markets Group

Widespread distribution

Nearly 200 Institutional sales professionals covering

over 6,200 accounts

34 institutional fixed income offices nationwide

European offices in London and Zurich

Customer-driven

Focus on long-only money

managers and income funds

versus hedge funds

Consistency of execution

Identification of relative

value through asset

class/security selection

US Government and Agency

Securities

Investment Grade Credit

Mortgage-Backed Securities (MBS)

Whole Loans

Government-Guaranteed Loans

Asset-Backed Securities (ABS)

Commercial Mortgage-Backed

Securities

Certificates of Deposit

Municipal Sales and Trading and

Public Finance

UK Sales and Trading (former

Knight Capital team)

High Yield and Distressed Credit

Loan Trading Group

Aircraft Finance & Credit Solutions

Hybrid Securities

Emerging Markets

Structured Products

Overview

Institutional Group –

Public Finance

20

Stifel has ranked in the top ten nationally for senior

managed negotiated underwritings for the past

three years, and Stifel has ranked number one

nationally for senior managed K-12 negotiated

underwritings since 2011.

Total of 21 Public Finance offices

105 Public Finance professionals

Specialty sectors:

Education

Local Government/Municipal

Healthcare

Public-Private Partnerships/Development

Housing

National K-12 2014YTD Negotiated Deal Rankings

Source:

Thomson

Reuters:

SDC

(True

Economics

to

Book).

2014YTD

–

9/9/2014

Public Finance Underwritings

Negotiated

Number

Par Amount

Number

Par Amount

Number

Par Amount

Senior Manager/Private Placement

273

$4,962,768,479

598

$9,928,173,963

559

$9,989,033,787

Co-Manager

63

$14,300,337,051

151

$41,793,904,000

162

$53,169,398,000

Total

336

$19,263,105,530

749

$51,722,077,963

721

$63,158,431,787

Competitive

Number

Par Amount

Number

Par Amount

Number

Par Amount

Senior Manager

31

$231,074,999

73

$587,723,000

114

$803,240,000

Co-Manager

171

$4,122,235,860

268

$3,138,960,000

299

$4,586,264,000

Total

202

$4,353,310,859

341

$3,726,683,000

413

$5,389,504,000

June 30, 2014

2013

2012

June 30, 2014

2013

2012

Rank

Book Runner

Par Amount

(US$ mil)

Number of

Issues

1

Stifel Nicolaus & Co Inc

5,247.8

323

2

Piper Jaffray & Co

3,921.5

225

3

Bank of America Merrill Lynch

3,308.7

15

4

RBC Capital Markets

3,242.3

217

5

Raymond James

2,148.3

97

6

Robert W Baird & Co Inc

1,643.2

120

7

Citi

1,462.1

22

8

George K Baum & Company Inc

1,339.9

100

9

J P Morgan Securities LLC

1,293.4

11

10

Wells Fargo & Co

1,209.3

23

11

D A Davidson & Co

1,031.6

113

12

City Securities Corporation

966.4

44

13

BOSC Inc

912.7

55

14

Loop Capital Markets

744.5

7

15

Southwest Securities

679.9

28

16

FirstSouthwest

607.6

44

17

Fifth Third Securities Inc

593.9

55

18

Roosevelt & Cross Inc

592.4

78

19

PNC Financial Services Group Inc

409.4

31

20

Janney Montgomery Scott LLC

389.8

35

Accomplished

U.S.

Equity

Underwriting

Franchise

–

All

Equity

Transactions

Investment Banking

Bookrun Equity Deals Since 2010

All Managed Equity Deals Since 2010

21

Source:

Dealogic.

Rank

eligible

SEC

registered

IPOs

and

Follow-On

offerings

since

2010.

Includes

demutualizations.

As

of

7/31/14.

Overlapping

deals

between

Stifel

and

its

acquired

firms

have

been

removed.

Note:  $ Volume represents full credit to underwriter for All Managed Equity Deals and apportioned credit to bookrunner for Bookrun Equity Deals. Bold font indicates middle-market firms.

($ in billions)

# of

$

Rank

Firm

Deals

Volume

1

Bank of America Merrill Lynch

1,034

$597.2

2

JPMorgan

1,012

$570.1

3

Citi

947

$567.6

4

Morgan Stanley

913

$546.1

5

Barclays

848

$488.4

6

Credit Suisse

823

$474.4

7

Wells Fargo Securities

821

$420.4

8

Deutsche Bank

814

$472.9

9

Stifel / Keefe, Bruyette & Woods

782

$272.5

10

Goldman Sachs

750

$486.9

11

RBC Capital Markets

743

$354.8

12

UBS

628

$349.7

13

Raymond James

537

$256.2

14

Robert W Baird & Co

403

$112.1

15

Piper Jaffray & Co

402

$179.6

16

Jefferies LLC

394

$91.1

17

JMP Securities LLC

358

$67.5

18

Oppenheimer & Co Inc

357

$87.9

19

William Blair & Co LLC

302

$82.1

20

Cowen & Co LLC

300

$63.4

21

BMO Capital Markets

268

$102.1

22

Canaccord Genuity Corp

263

$31.6

23

Janney Montgomery Scott

224

$38.7

24

KeyBanc Capital Markets

217

$83.9

25

Ladenburg Thalmann & Co Inc

216

$31.1

($ in billions)

# of

$

Rank

Firm

Deals

Volume

1

Bank of America Merrill Lynch

946

$111.4

2

JPMorgan

899

$112.5

3

Morgan Stanley

841

$121.7

4

Citi

832

$107.8

5

Barclays

709

$98.4

6

Goldman Sachs

679

$108.4

7

Credit Suisse

666

$80.8

8

Deutsche Bank

646

$69.2

9

Wells Fargo Securities

578

$44.6

10

UBS

439

$43.6

11

Jefferies LLC

317

$18.3

12

RBC Capital Markets

314

$23.5

13

Stifel / Keefe, Bruyette & Woods

257

$13.6

14

Raymond James

158

$8.1

15

Piper Jaffray & Co

140

$6.1

16

Cowen & Co LLC

119

$3.8

17

Roth Capital Partners

98

$1.9

18

Robert W Baird & Co

95

$4.1

19

Leerink Partners LLC

90

$3.5

20

BMO Capital Markets

75

$4.8

20

Aegis Capital Corp

75

$1.1

22

Lazard Capital Markets

64

$1.8

23

Sandler O'Neill & Partners

62

$4.9

24

KeyBanc Capital Markets

61

$3.6

25

Canaccord Genuity Corp

58

$2.6

Financial Overview

23

(1)

CAGR reflects years 2006 to 2013.

(2)

Book Value Per Share adjusted for April 2011 three-for-two stock split (2006-2010).

Selected Financial Highlights

CAGR: 24%

CAGR: 24%

CAGR: 21%

CAGR: 24%

Core Net Revenues ($MM)

(1)

Core Net Income ($MM)

(1)

Total Equity ($MM)

Total Client Assets ($BN)

Book Value Per Share

(2)

CAGR: 37%

Stifel Financial Results

Three months ended June 30, 2014

(1)

(2)

(2)

24

(1)

Non-core adjustments consist of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.

(2)

Results for the three months ended June 30, 2013 and March 31, 2014 are Core (non-GAAP).

($ in thousands, except per share amounts)

Non-GAAP

Non-Core

GAAP

6/30/13

% Change

3/31/14

% Change

Total revenues

570,543

$       

(1,554)

$          

568,989

$       

508,022

$       

12.3%

557,288

$    

2.4%

Interest expense

9,048

(206)

8,842

12,608

(28.2%)

8,853

2.2%

Net revenues

561,495

(1,348)

560,147

495,414

13.3%

548,435

2.4%

Compensation and benefits

353,754

1,513

355,267

311,228

13.7%

344,487

2.7%

Non-comp operating expenses

122,811

4,546

127,357

108,964

12.7%

119,376

2.9%

Total non-interest expenses

476,565

6,059

482,624

420,192

13.4%

463,863

2.7%

Income from continuing operations before income taxes

84,930

(7,407)

77,523

75,222

12.9%

84,572

0.4%

Provision for income taxes

33,664

(1,718)

31,946

30,089

11.9%

32,544

3.4%

Net income from continuing operations

51,266

$         

(5,689)

$          

45,577

$         

45,133

$         

13.6%

52,028

$      

(1.5%)

Discontinued operations:

Loss from discontinued operations, net of tax

-

(1,976)

(1,976)

-

-

Net income

51,266

$         

(7,665)

$          

43,601

$         

45,133

$         

13.6%

52,028

$      

(1.5%)

Earnings per diluted common share:

Income from continuing operations

0.68

$              

(0.08)

$            

0.60

$              

0.69

$              

(1.4%)

0.69

$           

(1.4%)

Loss from discontinued operations

-

(0.02)

(0.02)

-

-

Earnings per diluted common share

0.68

$              

(0.10)

$            

0.58

$              

0.69

$              

(1.4%)

0.69

$           

(1.4%)

Weighted average number of shares outstanding:

Diluted

75,641

74,090

2.1%

75,691

(0.1%)

Ratios to net revenues

:

Compensation and benefits

63.0%

63.4%

62.8%

62.8%

Non-comp operating expenses

21.9%

22.8%

22.0%

21.8%

Income from continuing operations before income taxes

15.1%

13.8%

15.2%

15.4%

Three Months Ended June 30, 2014

Three Months Ended

Stifel Financial Results

Six months ended June 30, 2014

(1)

(2)

25

(1)

Non-core adjustments consist of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.

(2)

Results for the six months ended June 30, 2013 are Core (non-GAAP). 

($ in thousands, except per share amounts)

Non-GAAP

Non-Core

GAAP

6/30/13

% Change

Total revenues

1,127,831

$  

(3,465)

$         

1,124,366

$  

957,202

$      

17.8%

Interest expense

17,901

(428)

17,473

23,176

(22.8%)

Net revenues

1,109,930

(3,037)

1,106,893

934,026

18.8%

Compensation and benefits

698,241

3,797

702,038

592,355

17.9%

Non-comp operating expenses

242,187

7,017

249,204

202,458

19.6%

Total non-interest expenses

940,428

10,814

951,242

794,813

18.3%

Income from continuing operations before income taxes

169,502

(13,851)

155,651

139,213

21.8%

Provision for income taxes

66,208

(4,107)

62,101

54,022

22.6%

Net income from continuing operations

103,294

$      

(9,744)

$         

93,550

$        

85,191

$        

21.2%

Discontinued operations:

Loss from discontinued operations, net

-

(2,567)

(2,567)

Net income

103,294

$      

(12,311)

$      

90,983

$        

85,191

$        

21.2%

Earnings per diluted common share:

Income from continuing operations

1.37

$             

(0.13)

$           

1.24

$             

1.19

$             

15.1%

Loss from discontinued operations, net

-

(0.04)

(0.04)

Earnings per diluted common share

1.37

$             

(0.17)

$           

1.20

$             

1.19

$             

15.1%

Weighted average number of shares outstanding:

Diluted

75,665

71,627

5.6%

Ratios to net revenues:

Compensation and benefits

62.9%

63.4%

63.4%

Non-comp operating expenses

21.8%

22.5%

21.7%

Income from continuing operations before income taxes

15.3%

14.1%

14.9%

Six Months Ended June 30, 2014

Six Months Ended

26

Sources of Revenues

($ in thousands)

6/30/14

6/30/13

%

Change

3/31/14

%

Change

6/30/14

6/30/13

%

Change

Commissions

152,712

$   

154,795

$   

(1.3%)

159,416

$       

(4.2%)

312,128

$     

300,662

$     

3.8%

Principal transactions

125,676

111,306

12.9%

126,461

(0.6%)

252,137

218,570

15.4%

Brokerage revenues

278,388

266,101

4.6%

285,877

(2.6%)

564,265

519,232

8.7%

Capital raising

81,159

71,303

13.8%

73,804

10.0%

154,690

121,152

27.7%

Advisory

60,356

48,140

25.4%

58,500

3.2%

119,129

75,196

58.4%

Investment banking

141,515

119,443

18.5%

132,304

7.0%

273,819

196,348

39.5%

Asset mgt and service fees

94,231

76,088

23.8%

89,170

5.7%

183,401

145,000

26.5%

Other

8,742

11,787

(25.8%)

5,200

68.1%

13,942

32,206

(56.7%)

    Total operating revenues

522,876

473,419

10.4%

512,551

2.0%

1,035,427

892,786

16.0%

Interest revenue

46,113

32,893

40.2%

42,826

7.7%

88,939

62,699

41.9%

    Total revenues

568,989

506,312

12.4%

555,377

2.5%

1,124,366

955,485

17.7%

Interest expense

8,842

12,634

(30.0%)

8,631

2.4%

17,473

23,203

(24.7%)

    Net revenues

560,147

$   

493,678

$   

13.5%

546,746

$       

2.5%

1,106,893

$ 

932,282

$     

18.7%

Three Months Ended

Six Months Ended

27

Brokerage & Investment Banking Revenues

($ in thousands)

6/30/14

6/30/13

% Change

3/31/14

% Change

6/30/14

6/30/13

% Change

Global Wealth Management

161,780

$  

160,889

$  

0.6%

161,505

$  

0.2%

323,285

$  

319,262

$  

1.3%

Institutional Group

Equity brokerage

62,087

64,273

(3.4%)

65,768

(5.6%)

127,855

113,511

12.6%

Fixed income brokerage

54,520

40,939

33.2%

58,604

(7.0%)

113,124

86,439

30.9%

Total Institutional Group

116,607

105,212

10.8%

124,372

(6.2%)

240,979

199,950

20.5%

Total brokerage revenues

278,387

266,101

4.6%

285,877

(2.6%)

564,264

519,212

8.7%

Investment Banking:

Capital raising

Equity

65,750

53,577

22.7%

60,696

8.3%

126,174

85,172

48.1%

Fixed income

15,409

17,726

(13.1%)

13,108

17.6%

28,516

35,980

(20.7%)

Total capital raising

81,159

71,303

13.8%

73,804

10.0%

154,690

121,152

27.7%

Advisory fees

60,356

48,140

25.4%

58,500

3.2%

119,129

75,196

58.4%

Total Investment banking

141,515

119,443

18.5%

132,304

7.0%

273,819

196,348

39.5%

Three Months Ended

Six Months Ended

Core Non-Interest Expenses

28

(1)

Excludes non-core adjustments consisting of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.

(2)

Transition pay includes amortization of retention awards, signing bonuses, and upfront notes.

Three months ended June 30, 2014

($ in thousands)

6/30/14

6/30/13

% Change

3/31/14

% Change

6/30/14

6/30/13

3/31/14

Net revenues

561,495

$     

495,414

$     

13.3%

548,435

$     

2.4%

100.0%

100.0%

100.0%

Compensation and benefits

328,380

290,511

13.0%

321,035

2.3%

58.5%

58.6%

58.5%

Transitional pay

25,374

20,717

22.5%

23,452

8.2%

4.5%

4.2%

4.3%

Total compensation and benefits

353,754

311,228

13.7%

344,487

2.7%

63.0%

62.8%

62.8%

Occupancy and equipment rental

40,493

37,768

7.2%

39,570

2.3%

7.2%

7.6%

7.2%

Communication and office supplies

25,691

24,124

6.5%

24,801

3.6%

4.6%

4.9%

4.5%

Commissions and floor brokerage

9,248

9,374

(1.3%)

9,028

2.4%

1.6%

1.9%

1.6%

Other operating expenses

47,379

37,698

25.7%

45,977

3.0%

8.4%

7.6%

8.5%

Total non-comp operating expenses

122,811

108,964

12.7%

119,376

2.9%

21.9%

22.0%

21.8%

Total non-interest expense

476,565

420,192

13.4%

463,863

2.7%

84.9%

84.8%

84.6%

Income from continuing operations before income taxes

84,930

75,222

12.9%

84,572

0.4%

15.1%

15.2%

15.4%

Provision for income taxes

33,664

30,089

11.9%

32,544

3.4%

6.0%

6.1%

5.9%

Non-GAAP net income from continuing operations

51,266

$       

45,133

$       

13.6%

52,028

$       

(1.5%)

9.1%

9.1%

9.5%

Non-core expenses (after-tax)

(5,689)

(14,217)

(4,055)

GAAP net income from continuing operations

45,577

$       

30,916

$       

47,973

$       

Three Months Ended

% of Net revenues

(1)

(1)

(2)

Core Non-Interest Expenses

29

(1)

Excludes non-core adjustments consisting of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.

(2)

Transition pay includes amortization of retention awards, signing bonuses, and upfront notes.

Six months ended June 30, 2014

($ in thousands)

6/30/14

(1)

6/30/13

% Change

6/30/14

(1)

6/30/13

Net revenues

1,109,930

$  

934,026

$     

18.8%

100.0%

100.0%

Compensation and benefits

649,415

550,812

17.9%

58.5%

59.1%

Transitional pay

(2)

48,826

41,543

17.5%

4.4%

4.4%

Total compensation and benefits

698,241

592,355

17.9%

62.9%

63.4%

Occupancy and equipment rental

80,063

68,741

16.5%

7.2%

7.4%

Communication and office supplies

50,492

45,459

11.1%

4.5%

4.9%

Commissions and floor brokerage

18,276

17,823

2.5%

1.6%

1.9%

Other operating expenses

93,356

70,435

32.5%

8.4%

7.6%

Total non-comp operating expenses

242,187

202,458

19.6%

21.8%

21.7%

Total non-interest expense

940,428

794,813

18.3%

84.7%

85.1%

Income from continuing operations before income taxes

169,502

139,213

21.8%

15.3%

14.9%

Provision for income taxes

66,208

54,022

22.6%

6.0%

5.8%

Non-GAAP net income from continuing operations

103,294

$     

85,191

$       

21.2%

9.3%

9.1%

Non-core expenses (after-tax)

(9,744)

(39,339)

GAAP net income from continuing operations

93,550

$       

45,852

$       

Six Months Ended

% of Net revenues

Segment Comparison -

Core

30

Three and six months ended June 30, 2014

($ in thousands)

6/30/14

6/30/13

%

Change

3/31/14

%

Change

6/30/14

6/30/13

%

Change

Net revenues:

Global Wealth Management

307,247

$  

282,717

$  

8.7%

297,183

$  

3.4%

604,430

$   

549,674

$   

10.0%

Institutional Group

255,712

215,444

18.7%

249,977

2.3%

505,689

388,744

30.1%

Other

(1,464)

(2,747)

46.7%

1,275

(214.8%)

(189)

(4,392)

95.7%

561,495

$  

495,414

$  

13.3%

548,435

$  

2.4%

1,109,930

$

934,026

$   

18.8%

Operating contribution:

Global Wealth Management

89,098

$    

78,924

$    

12.9%

79,676

$    

11.8%

168,774

$   

148,423

$   

13.7%

Institutional Group

42,690

31,083

37.3%

45,622

(6.4%)

88,312

59,313

48.9%

Other

(46,858)

(34,785)

(34.7%)

(40,726)

(15.1%)

(87,584)

(68,523)

(27.8%)

84,930

$    

75,222

$    

12.9%

84,572

$    

0.4%

169,502

$   

139,213

$   

21.8%

Operating contribution

Global Wealth Management

29.0

27.9

26.8

27.9

27.0

Institutional Group

16.7

14.4

18.3

17.5

15.3

15.1

15.2

15.4

15.3

14.9

As a percentage of net revenues:

Three Months Ended

Six Months Ended

(1)

Excludes the other segment.

(1)