SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-9305
STIFEL FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
DELAWARE 43-1273600
- --------------------------------- ------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
501 N. Broadway, St. Louis, Missouri 63102-2102
- --------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 314-342-2000
(Former name, former address, and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes [x] No
Shares of common stock outstanding at August 1, 2000: 7,265,768,
par value $0.15.
Stifel Financial Corp. And Subsidiaries
Form 10-Q Index
June 30, 2000
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Financial Condition --
June 30, 2000 and December 31, 1999
Consolidated Statements of Operations --
Three Months Ended June 30, 2000 and June 30, 1999
Consolidated Statements of Operations --
Six Months Ended June 30, 2000 and June 30, 1999
Consolidated Statements of Cash Flows--
Six Months Ended June 30, 2000 and June 30, 1999
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosure about Market
Risk
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 6. Exhibit(s) and Report(s) on Form 8-K
Signatures
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED) (In thousands, except par values and share amounts)
June 30, December 31,
2000 1999
------------ ------------
ASSETS
Cash and cash equivalents $ 14,381 $ 16,861
Cash segregated for the exclusive benefit
of customers 184 181
Receivable from brokers and dealers 30,123 42,037
Receivable from customers, net of
allowance for doubtful receivables of
$587 and $556, respectively 374,993 313,034
Securities owned, at fair value 29,810 28,690
Membership in exchanges, at cost 470 470
Office equipment and leasehold
improvements, at cost, net of
allowances for depreciation and
amortization of $12,807 and $11,370,
respectively 8,419 7,597
Goodwill, net of accumulated amortization
of $859 and $738, respectively 5,357 1,631
Notes receivable from and advances to
officers and employees, net of
allowance for doubtful receivables
from former employees of $365 and
$701, respectively 10,065 7,934
Deferred tax asset 2,061 2,958
Other assets 36,925 31,717
------------ ------------
Total Assets $ 512,788 $ 453,110
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Short-term borrowings from banks $ 145,850 $ 122,950
Payable to brokers and dealers 164,885 147,059
Payable to customers 46,099 33,643
Securities sold, but not yet purchased, at
fair value 3,383 2,036
Drafts payable 13,078 18,065
Accrued employee compensation 16,850 18,277
Obligations under capital leases 779 1,068
Accounts payable and accrued expenses 15,821 15,985
Long-term debt 35,862 34,968
------------ ------------
Total Liabilities 442,607 394,051
------------ ------------
Stockholders' Equity
Preferred stock -- $1 par value; authorized
3,000,000 shares; none issued - - - -
Common stock -- $0.15 par value; authorized
10,000,000 shares; issued 7,525,971
and 7,376,176 shares, respectively 1,129 1,107
Additional paid-in capital 45,131 43,573
Retained earnings 29,724 24,546
------------ ------------
75,984 69,226
Less:
Treasury stock, at cost, 284,752 and
724,055 shares, respectively 2,802 6,984
Unamortized expense of restricted
stock awards 292 370
Unearned employee stock ownership plan
shares, at cost, 211,469 and 219,601
shares, respectively 2,709 2,813
------------ ------------
Total Stockholders' Equity 70,181 59,059
------------ ------------
Total Liabilities and
Stockholders Equity $ 512,788 $ 453,110
============ ============
See Notes to Consolidated Financial Statements.
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
June 30, June 30,
2000 1999
------------ ------------
REVENUES
Commissions $ 19,815 $ 17,411
Principal transactions 6,314 5,983
Investment banking 5,381 2,502
Interest 9,264 4,425
Other 7,168 7,514
------------ ------------
47,942 37,835
EXPENSES
Employee compensation and
benefits 27,880 22,950
Communications and office
supplies 2,744 2,340
Occupancy and equipment rental 3,558 2,948
Interest 5,655 2,102
Commissions and floor brokerage 751 676
Other operating expenses 3,494 3,414
------------ ------------
44,082 34,430
------------ ------------
INCOME BEFORE INCOME TAXES 3,860 3,405
Provision for income taxes 1,399 1,161
------------ ------------
NET INCOME $ 2,461 $ 2,244
Net income per share:
Basic $ 0.35 $ 0.33
Diluted $ 0.32 $ 0.32
Dividends declared per share $ 0.03 $ 0.03
Average common equivalent shares
outstanding:
Basic 7,015 6,728
Diluted 7,692 7,087
See Notes to Consolidated Financial Statements.
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except per share amounts)
Six Months Ended
June 30, June 30,
2000 1999
------------ ------------
REVENUES
Commissions $ 45,375 $ 34,676
Principal transactions 15,490 12,424
Investment banking 7,635 5,514
Interest 16,971 8,903
Other 14,688 13,335
------------ ------------
100,159 74,852
EXPENSES
Employee compensation and
benefits 59,997 46,807
Communications and office
supplies 5,240 4,366
Occupancy and equipment rental 7,022 5,511
Interest 10,035 4,072
Commissions and floor brokerage 1,746 1,449
Other operating expenses 7,173 6,427
------------ ------------
91,213 68,632
------------ ------------
INCOME BEFORE INCOME TAXES 8,946 6,220
Provision for income taxes 3,205 2,189
------------ ------------
NET INCOME $ 5,741 $ 4,031
============ ============
Net income per share:
Basic $ 0.82 $ 0.59
Diluted $ 0.76 $ 0.56
Dividends declared per share $ 0.06 $ 0.06
Average common equivalent shares
outstanding:
Basic 6,974 6,785
Diluted 7,563 7,136
See Notes to Consolidated Financial Statements.
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)(In thousands)
Six Months Ended
June 30, June 30,
2000 2000
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 5,741 $ 4,031
Noncash items included in earnings:
Depreciation and amortization 1,558 882
Bonus notes amortization 1,083 840
Gain on disposition of assets (296) (1,496)
Deferred items 1,082 (184)
Restricted stock awards amortization 736 202
------------ ------------
9,904 4,275
Decrease (increase) in assets:
Operating receivables (49,759) (28,481)
Cash segregated for the exclusive
benefit of customers (3) (2)
Securities owned (1,120) 15,520
Notes receivable from officers and
employees (3,208) (927)
Other assets (920) (928)
Increase (decrease) in liabilities:
Operating payables 30,282 27,424
Securities sold, but not yet purchased 1,347 1,871
Drafts payable, accrued employee
compensation, and accounts payable
and accrued expenses (8,094) (13,033)
------------ ------------
Cash Flows From Operating Activities (21,571) 5,719
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from:
Sale of property - - 12
Cash received in acquisition of
subsidiary 2,927 - -
Sale of subsidiary - - 4,609
Sale of investments 463 - -
Payments for:
Acquisition of office equipment and
leasehold improvements (2,259) (1,459)
Acquisition of investment s (2,433) (6,012)
------------ ------------
Cash Flows From Investing Activities (1,302) (2,850)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term borrowings, net 22,785 (3,140)
Proceeds from:
Issuance of stock 1,477 1,466
Issuance of long-term debt - - 9,398
Payments for:
Settlements of long-term debt (370)
Repurchase of stock (1,260) (3,252)
Repayment of subordinated borrowings (1,500) - -
Principal payments under capital lease
obligation (289) (374)
Cash dividends (450) (435)
------------- ------------
Cash Flows From Financing Activities 20,393 3,663
------------- ------------
(Decrease) increase in cash and cash
equivalents (2,480) 6,532
Cash and cash equivalents - beginning
of period 16,861 12,835
------------- ------------
Cash and Cash Equivalents - end of
period $ 14,381 $ 19,367
============= ============
Supplemental disclosure of cash flow information:
Income tax payments $ 1,676 $ 2,269
Interest payments $ 9,739 $ 4,117
Schedule of noncash investing and financing activities:
Employee stock ownership plan $ 86 $ 77
Fixed assets acquired under
capital lease $ - - $ 924
Acquisition of Hanifen, Imhoff Inc. $ 4,746 $ - -
Restricted stock awards and stock
units, net of forfeitures $ 1,248 $ 361
See Notes to Consolidated Financial Statements.
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - REPORTING POLICIES
Basis of Presentation
The consolidated financial statements include the accounts of
Stifel Financial Corp. and its subsidiaries (collectively
referred to as the "Company"). The accompanying unaudited
consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the
United States of America for interim financial information and
with the instructions to Form 10-Q and Rule 10-01 of Regulation S-
X. Accordingly, they do not include all of the information and
footnotes required by accounting principles generally accepted in
the United States of America for complete financial statements.
In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three
and six months ended June 30, 2000 are not necessarily indicative
of the results that may be expected for the year ending December
31, 2000. For further information, refer to the financial
statements and notes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1999.
Where appropriate, prior year's financial information has been
reclassified to conform with the current year presentation.
Comprehensive Income
The Company has no components of other comprehensive income,
therefore comprehensive income equals net income.
NOTE B - NET CAPITAL REQUIREMENT
The Company's principal subsidiary, Stifel, Nicolaus &
Company, Incorporated ("SN & Co."), is subject to the Uniform Net
Capital Rule 15c3-1 under the Securities Exchange Act of 1934, as
amended (the "Rule"), which requires the maintenance of minimum
net capital, as defined. SN & Co. has elected to use the
alternative method permitted by the Rule which requires
maintenance of minimum net capital equal to the greater of
$250,000 or 2 percent of aggregate debit items arising from
customer transactions, as defined. The Rule also provides that
equity capital may not be withdrawn and cash dividends may not be
paid if resulting net capital would be less than 5 percent of
aggregate debit items.
At June 30, 2000, SN & Co. had net capital of $37,666,843
which was 9.08% of its aggregate debit items, and $29,374,263 in
excess of the minimum required net capital.
NOTE C - SEGMENT REPORTING
The Company's reportable segments include private client,
capital markets, and other. The private client segment includes
61 branch offices and 116 independent contractor offices of the
Company's broker-dealer subsidiaries located throughout the U.S.,
primarily in the Midwest. These branches provide securities
brokerage services, including the sale of equities, mutual funds,
fixed income products, and insurance, to their private clients.
The capital markets segment includes management and participation
in underwritings (exclusive of sales credits, which are included
in the private client segment), mergers and acquisitions, public
finance, trading, research, and market making. Investment
advisory fees and clearing income are included in other.
Intersegment revenues and charges are eliminated between
segments. The Company evaluates the performance of its segments
and allocates resources to them based on various factors,
including prospects for growth, return on investment, and return
on revenues.
Information concerning operations in these segments of
business is as follows (in thousands):
- ---------------------------------------------------------------------------
Three Months Ended June 30, 2000 1999
- ---------------------------------------------------------------------------
Revenues
Private Client $ 38,733 $ 31,342
Capital Markets 7,931 3,685
Other 1,278 2,808
- ---------------------------------------------------------------------------
Total Revenues $ 47,942 $ 37,835
- ---------------------------------------------------------------------------
Operating Contribution
Private Client $ 7,388 $ 5,404
Capital Markets 586 (254)
Other (387) 1,839
- ---------------------------------------------------------------------------
Total Operating Contribution 7,587 6,989
- ---------------------------------------------------------------------------
Unallocated Overhead (3,727) (3,584)
- ---------------------------------------------------------------------------
Pre-Tax Income $ 3,860 $ 3,405
===========================================================================
- ---------------------------------------------------------------------------
Six Months Ended June 30, 2000 1999
- ---------------------------------------------------------------------------
Revenues
Private Client $ 82,444 $ 62,063
Capital Markets 14,938 8,654
Other 2,777 4,135
- ---------------------------------------------------------------------------
Total Revenues $ 100,159 $ 74,852
- ---------------------------------------------------------------------------
Operating Contribution
Private Client $ 16,353 $ 10,757
Capital Markets 701 (38)
Other 46 2,244
- ---------------------------------------------------------------------------
Total Operating Contribution 17,100 12,963
- ---------------------------------------------------------------------------
Unallocated Overhead (8,154) (6,743)
- ---------------------------------------------------------------------------
Pre-Tax Income $ 8,946 $ 6,220
- ---------------------------------------------------------------------------
The Company has not disclosed asset information by segment, as
the information is not produced internally and its preparation is
impracticable.
NOTE D - EARNINGS PER SHARE ("EPS")
Basic EPS is calculated by dividing net income by the weighted-
average number of common shares outstanding. Diluted EPS is
similar to basic EPS but adjusts for the effect of potential
common shares.
The components of the basic and diluted earnings per share
calculation for the three and six months ended June 30, are as
follows (in thousands, except per share amounts):
- --------------------------------------------------------------------------
Three Months Ended June 30, 2000 1999
Income Available to Common Stockholders
- --------------------------------------------------------------------------
Net Income $ 2,461 $ 2,244
- --------------------------------------------------------------------------
Weighted Average Shares Outstanding
Basic Weighted Average Shares Outstanding 7,015 6,728
Potential Common Shares From Employee
Benefit Plans 677 359
Diluted Weighted Average Shares Outstanding 7,692 7,087
- --------------------------------------------------------------------------
Basic Earnings Per Share $ 0.35 $ 0.33
Diluted Earnings Per Share $ 0.32 $ 0.32
- --------------------------------------------------------------------------
Six Months Ended June 30, 2000 1999
Income Available to Common Stockholders
- --------------------------------------------------------------------------
Net Income $ 5,741 $ 4,031
- --------------------------------------------------------------------------
Weighted Average Shares Outstanding
Basic Weighted Average Shares Outstanding 6,974 6,785
Potential Common Shares From Employee Benefit
Plans 589 351
Diluted Weighted Average Shares Outstanding 7,563 7,136
- --------------------------------------------------------------------------
Basic Earnings Per Share $ 0.82 $ 0.59
Diluted Earnings Per Share $ 0.76 $ 0.56
- --------------------------------------------------------------------------
NOTE E - MERGER
On January 12, 2000, the Company completed the merger of
Hanifen, Imhoff Inc. ("HII"), a Denver-based investment banking
firm. The transaction has been accounted for as a purchase and
provides for a tax-free exchange of 516,984 shares of the
Company's stock (valued at $4,745,913) for all of the outstanding
shares of HII. The purchase price has been allocated to net
tangible and intangible assets acquired based on their estimated
fair market values. The remaining purchase price of $3.8 million
has been recorded as goodwill, which will be amortized over 25
years. The exchange ratio was calculated using the respective
book values of the Company and HII. The total shares issued in
the transaction were based upon the final closing equity of HII
at December 31, 1999. In connection with the transaction, certain
key associates of HII executed employment agreements containing
non-compete provisions and restrictions on the sale of the stock
received in the merger and were awarded options in the Company.
The merger added 54 investment bankers, research analysts,
institutional sales associates, and traders to the capital
markets segment, as well as 24 administrative and technical
support associates.
The following is unaudited pro forma financial data for the
combined operations, assuming the transaction had taken place on
January 1, 1999.
- ---------------------------------------------------------------------------
Three Months Ended June 30, 2000 1999
(in thousands, except per share amounts)
- ---------------------------------------------------------------------------
Revenues $ 47,942 $ 42,141
Net income $ 2,461 $ 2,313
Diluted earnings per share $ 0.32 $ 0.30
Diluted weighted average shares outstanding 7,692 7,606
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
Six Months Ended June 30, 2000 1999
(in thousands, except per share amounts)
- ---------------------------------------------------------------------------
Revenues $100,388 $ 83,418
Net income $ 5,056 $ 3,841
Diluted earnings per share $ 0.67 $ 0.50
Diluted weighted average shares outstanding 7,598 7,655
- ---------------------------------------------------------------------------
The above pro forma statements do not purport to be indicative of
the results which actually would have occurred had the
acquisition been made on January 1, 1999.
NOTE F - SUBSEQUENT EVENTS
On July 26, 2000, the Company's Board of Directors declared a
regular quarterly cash dividend of $0.03 per share, payable on
August 23, 2000 to stockholders of record as of the close of
business on August 9, 2000.
******
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
Six months ended June 2000 as compared to six months ended June
1999
The Company recorded net earnings of $5.7 million or $0.76 per
diluted share on total revenues of $100.2 million for the six
months ended June 30, 2000 compared to net earnings of $4.0
million or $0.56 per diluted share on total revenues of $74.9
million for the same period one year earlier.
The Company's continued expansion of its Private Client Group,
which began in 1998, was evident during the first six months of
2000 when compared to the same period one year earlier. Private
client branch offices, investment executives, and independent
contractors increased by 11, 106 and 25, respectively over the
same period . Trading volumes on the New York Stock Exchange
("NYSE") and NASDAQ from June 30, 1999 to June 30, 2000,
increased 18% and 39%, respectively, which contributed to a 61%
increase in the number of customer trades by the Company.
Additionally, the merger of HII contributed to increased revenue
production, most significantly in principal transactions and
investment banking, which primarily consists of corporate finance
advisory fees.
Total revenues increased $25.3 million (34%) as a result of
growth in commissions, principal transactions, investment
banking, interest revenues and other revenue which increased
$10.7 million (31%), $3.1 million (25%), $2.1 million (38%), $8.1
million (91%) and $1.3 million (10%), respectively.
Revenues from commissions rose due to private client expansion
and increased trading volumes as referred to above. The main
components of the increase were from sales of over-the-counter
equities, listed options, insurance products, and mutual funds.
Revenues from principal transactions increased primarily due
to the increased sales of nontaxable fixed income products and
unit trusts and the addition of HII.
Investment banking revenues increased due to an increase in
corporate finance advisory fees, syndicate participation fees,
and municipal fees.
Interest revenues rose as a result of a 24% increase in the
number of margin accounts with a 29% increase in average
borrowings by customers, combined with increases in the rates
charged to those customers.
Other revenues increased principally due to growth in managed
account fees, unrealized gains recorded by a non-broker dealer
subsidiary of the Company and receipts of death benefit proceeds
from insurance policies. This increase was partially offset by a
decrease in investment advisory fees due to the sale of Todd
Investment Advisors and the gain recorded on the sale of Todd in
the second quarter of 1999.
Total expenses increased $22.6 million (33%). All expense
categories increased over the same period one year earlier due to
the continued expansion of the private client group and the
merger of HII unless explained otherwise.
Employee compensation and benefits, a significant portion of
the Company's total expense, increased $13.2 million (28%) in the
first six months of 2000. The increase in the variable component
of compensation of $10.5 million (31%) grew in conjunction with
increases in revenues and profitability. The increase in the
fixed component of compensation of $2.7 million (21%) primarily
resulted from private client group expansion and the merger of
HII.
Other operating expenses increased $746,000 (12%) principally
due to increased employment recruiting fees in conjunction with
increases in advertising and travel and promotion expense
resulting from private client group expansion and the merger of
HII.
Interest expense increased $6.0 million (146%) due to
increased borrowings by the Company to finance customer margin
accounts, combined with increases in the rates paid on those
borrowings.
Three months ended June 2000 as compared to three months ended
June 1999
The Company recorded net earnings of $2.5 million or $0.32 per
diluted share on total revenues of $47.9 million for the second
quarter ended June 30, 2000 compared to net earnings of $2.2
million or $0.32 per diluted share on total revenues of $37.8
million for the same period one year earlier. The explanation of
revenue and expense fluctuations presented for the six month
period are generally applicable to the three month operations.
Forward-Looking Statements
The Management's Discussion and Analysis of Financial
Condition and Results of Operations, contains forward-looking
statements within the meaning of federal securities laws. Actual
results are subject to risks and uncertainties, including both
those specific to the Company and those specific to the industry
which could cause results to differ materially from those
contemplated. The risks and uncertainties include, but are not
limited to, general economic conditions, actions of competitors,
regulatory actions, changes in legislation and technology
changes. Undue reliance should not be placed on the forward-
looking statements, which speak only as of the date of this
Quarterly Report. The Company does not undertake any obligation
to publicly update any forward-looking statements.
Liquidity and Capital Resources
The majority of the Company's assets are highly liquid,
consisting mainly of cash or assets readily convertible into
cash. These assets are financed primarily by the Company's equity
capital, customer credit balances, short-term bank loans,
proceeds from securities lending, long term notes payable, and
other payables. Changes in securities market volumes, related
customer borrowing demands, underwriting activity, and levels of
securities inventory affect the amount of the Company's financing
requirements.
During the first six months of 2000, the Company repurchased
123,328 shares, using existing board authorizations, at an
average price of $10.22 per share, to meet obligations under the
Company's employee benefit plans.
On January 12, 2000 the Company completed the merger of HII, a
Denver-based investment banking firm. The merger was completed
with the tax-free exchange of 516,984 shares of the Company for
all of the outstanding shares of HII.
Management believes the funds from operations, available
informal short-term credit arrangements, and long-term
borrowings, at June 30, 2000, will provide sufficient resources
to meet the present and anticipated financing needs.
Stifel, Nicolaus & Company, Incorporated, the Company's
principal broker-dealer subsidiary, is subject to certain
requirements of the Securities and Exchange Commission with
regard to liquidity and capital requirements. At June 30, 2000,
Stifel, Nicolaus had net capital of approximately $37.7 million
which exceeded the minimum net capital requirements by
approximately $29.4 million.
Item 3. Quantitative and Qualitative Disclosure about Market Risk
There have been no material changes from the information
provided in the Company's Annual Report on Form 10-K for the year
ended December 31, 1999.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
There have been no material changes, except as reported in
Item 6(b) "Report on Form 8-K," in the legal proceedings
previously reported in the Company's Annual Report on Form 10-K
for the year ended December 31, 1999. Such information is hereby
incorporated by reference.
Item 6. Exhibit(s) and Report(s) on Form 8-K
(a) Exhibit No.
(Reference to Item 601(b)
of Regulation S-K) Description
27 Financial Data Schedule
(furnished to the Securities and Exchange
Commission for Electronic Data
Gathering, Analysis, and Retrieval
[EDGAR] purposes only)
(b) Report(s) on Form 8-K
The Company filed a report on Form 8-K dated May 18, 2000.
This report Form 8-K contained information under Item 5. Other
Events. On May 18, 2000, the Company announced that its
principal subsidiary, Stifel, Nicolaus & Company, Incorporated
("Stifel"), and Sakura Global Capital, Inc. ("Sakura") entered
into a settlement agreement with the Oklahoma Transportation
Authority ("OTA"), formerly known as the Oklahoma Turnpike
Authority, relating to the 1992 OTA $608 million bond issue.
In connection with the settlement, the settling parties also
entered into a closing agreement with the Internal Revenue
Service which preserves the tax-exempt status of the bonds.
This settlement agreement resolves the five year-old civil
action filed by the OTA.
SIGNATURES
Pursuant to the requirement of Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
STIFEL FINANCIAL CORP.
(Registrant)
Date: August 14, 2000 By /s/ Ronald J. Kruszewski
Ronald J. Kruszewski
(President and
Chief Executive Officer)
Date: August 14, 2000 By /s/ James M. Zemlyak
James M. Zemlyak
(Principal Financial and
Accounting Officer)
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
EXHIBIT INDEX
June 30, 2000
Exhibit
Number Description
- --------------------- ---------------------------------------------
27 Financial Data Schedule
(furnished to the Securities and Exchange
Commission for Electronic Data
Gathering, Analysis, and Retrieval
[EDGAR] purposes only)