-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T+plq8DTtzOb/FX94PMhFHlIVwgL8NJl5/FdhforAmX0t5b3anF9Oge1IPrYmQJl wur14eAOF6tDGhcwDMnOqA== 0000720672-98-000017.txt : 19981116 0000720672-98-000017.hdr.sgml : 19981116 ACCESSION NUMBER: 0000720672-98-000017 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STIFEL FINANCIAL CORP CENTRAL INDEX KEY: 0000720672 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 431273600 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09305 FILM NUMBER: 98747989 BUSINESS ADDRESS: STREET 1: 500 N. BROADWAY STREET 2: 14TH FLOOR CITY: ST LOUIS STATE: MO ZIP: 63102-2188 BUSINESS PHONE: 3143422000 MAIL ADDRESS: STREET 1: 500 N BROADWAY CITY: ST LOUIS STATE: MO ZIP: 63102-2188 10-Q 1 FORM 10-Q; DATED SEPTEMBER 30, 1998 1 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 September 30, 1998 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 of incorporation or organization) (I.R.S. Employer Identification No.) 500 N. Broadway, St. Louis, Missouri 63102-2188 (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 September 30, 1998: 6,782,809, par value $0.15. Exhibit Index is on page 15. 2 Stifel Financial Corp. And Subsidiaries Form 10-Q Index September 30, 1998 PAGE PART I. FINANCIAL CONDITION Item 1. Financial Statements (Unaudited) Consolidated Statements of Financial Condition -- September 30, 1998 and December 31, 1997 3-4 Consolidated Statements of Operations -- Three Months Ended September 30, 1998 and September 26, 1997 5 Consolidated Statements of Operations -- Nine Months Ended September 30, 1998 and September 26, 1997 6 Consolidated Statements of Cash Flows-- Nine Months Ended September 30, 1998 and September 26, 1997 7-8 Notes to Consolidated Financial Statements 9-11 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition 12-15 PART II. OTHER INFORMATION Item 1. Legal Proceedings 16 Item 6. Exhibit(s) and Report(s) on Form 8-K 16 Signatures 17 3 PART I. FINANCIAL CONDITION Item 1. Financial Statements (Unaudited) STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (In thousands, except par values and share amounts) September 30, December 31, 1998 1997 ------------- ------------ ASSETS Cash and cash equivalents $ 15,511 $ 15,366 Cash segregated for the exclusive benefit of customers 176 177 Receivable from brokers and dealers 5,421 35,223 Receivable from customers, net of allowance for doubtful accounts of $556 and $556, respectively 199,911 218,301 Securities owned, at fair value 26,413 19,212 Membership in exchanges, at cost 513 513 Office equipment and leasehold improvements, at cost, net of allowances for depreciation and amortization of $11,997 and 10,890 respectively 4,616 2,227 Goodwill, net of accumulated amortization of $1,645 and $1,414, respectively 4,113 4,181 Notes receivable from and advances to officers and employees, net of allowance for doubtful receivables of $1,221 and $2,376, respectively 7,311 4,249 Deferred tax asset 3,078 4,577 Other assets 20,248 11,458 ------------ ------------ $ 287,311 $ 315,484 ============ ============ 4 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (CONTINUED) (UNAUDITED) (In thousands, except par values and share amounts) September 30, December 31, 1998 1998 ------------- ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Short-term borrowings from banks $ 24,375 $ 89,150 Payable to brokers and dealers 111,100 73,708 Payable to customers 38,562 39,239 Securities sold, but not yet purchased, at fair value 1,462 4,264 Drafts payable 8,980 13,966 Accrued employee compensation 15,220 19,247 Obligations under capital leases 633 522 Accounts payable and accrued expenses 11,182 15,707 Long-term debt 20,570 9,600 ------------ ------------ Total Liabilities 232,084 265,403 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 6,808,102 and 6,678,223 shares, respectively 1,021 1,002 Additional paid-in capital 37,802 37,006 Retained earnings 21,032 17,425 ------------ ------------ 59,855 55,433 Less: Treasury stock, at cost, 25,293 and 168,648 shares, respectively 281 1,989 Unamortized expense of restricted stock awards 1,169 185 Unearned employee stock ownership plan shares, at cost, 236,250 shares 3,178 3,178 ------------ ------------ Total Stockholders' Equity 55,227 50,081 ------------ ------------ $ 287,311 $ 315,484 ============ ============ See Notes to Consolidated Financial Statements. 5 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except per share amounts) Three Months Ended September 30, September 26, 1998 1997 ------------- ------------- REVENUES Commissions $ 14,231 $ 13,505 Principal transactions 4,235 4,625 Investment banking 6,557 8,406 Interest 4,765 5,957 Other 4,471 4,152 ------------ ------------ 34,259 36,645 EXPENSES Employee compensation and benefits 22,108 22,030 Communications and office supplies 2,065 1,669 Occupancy and equipment rental 2,344 2,048 Interest 2,439 3,931 Commissions and floor brokerage 726 774 Other operating expenses 3,016 2,829 ------------ ------------ 32,698 33,281 ------------ ------------ INCOME BEFORE INCOME TAXES 1,561 3,364 Provision for income taxes 594 1,352 ------------ ------------ NET INCOME $ 967 $ 2,012 Net income per share: Basic $ 0.15 $ 0.40 Diluted $ 0.14 $ 0.31 Dividends declared per share $ 0.03 $ 0.03 Average common equivalent shares outstanding: Basic 6,544 5,076 Diluted 6,856 6,830 See Notes to Consolidated Financial Statements. 6 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except per share amounts) Nine Months Ended September 30, September 26, 1998 1997 ------------- ------------- REVENUES Commissions $ 41,822 $ 36,804 Principal transactions 19,792 14,743 Investment banking 13,787 20,130 Interest 14,634 16,004 Other 14,135 11,468 ------------ ------------ 104,170 99,149 EXPENSES Employee compensation and benefits 65,991 59,625 Communications and office supplies 6,151 5,121 Occupancy and equipment rental 6,672 5,969 Interest 7,861 10,414 Commissions and floor brokerage 2,076 2,208 Other operating expenses 8,340 8,132 ------------ ------------ 97,091 91,469 ------------ ------------ INCOME BEFORE INCOME TAXES 7,079 7,680 Provision for income taxes 2,836 3,100 ------------ ------------ NET INCOME $ 4,243 $ 4,580 Net income per share: Basic $ 0.65 $ 0.92 Diluted $ 0.62 $ 0.73 Dividends declared per share $ 0.09 $ 0.09 Average common equivalent shares outstanding: Basic 6,513 4,989 Diluted 6,887 6,682 See Notes to Consolidated Financial Statements. 7 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(In thousands) Nine Months Ended September 30, September 26, 1998 1997 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 4,243 $ 4,580 Noncash items included in earnings: Depreciation and amortization 1,337 1,150 Bonus notes amortization 1,157 906 Deferred items 1,936 1,358 Restricted stock awards amortization 351 96 ------------ ------------ 9,024 8,090 Decrease (increase) in assets: Operating receivables 48,192 15,846 Cash segregated for the exclusive benefit of customers 1 242 Securities owned (7,201) 1,679 Notes receivable from officers and employees (4,219) (575) Other assets (3,196) 534 Increase (decrease) in liabilities: Operating payables 36,715 46,464 Securities sold, but not yet purchased (2,802) 108 Drafts payable, accounts payable and accrued expenses, and accrued employee compensation (13,975) (490) ------------ ------------ Cash Flows From Operating Activities $ 62,539 $ 71,898 See Notes to Consolidated Financial Statements. 8 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (UNAUDITED)(In thousands) Nine Months Ended September 30, September 26, 1998 1997 ------------- ------------- Cash Flows From Operating Activities - from previous page $ 62,539 $ 71,898 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from: Sale of investments 72 57 Payments for: Acquisition of office equipment and leasehold improvements (3,021) (882) Acquisition of investments (5,808) (900) ------------ ------------ Cash Flows From Investing Activities (8,757) (1,725) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net (64,775) (70,725) Proceeds from: Issuance of stock 1,441 791 Temporary subordinated debt - - 8,000 Issuance of Long-term debt 10,970 - - Payments for: Repurchase of stock (283) (1,315) Temporary subordinated debt - - (8,000) Principal payments under capital lease obligation (384) (308) Cash dividends (606) (425) ------------ ------------ Cash Flows From Financing Activities (53,637) (71,982) ------------ ------------ Increase (decrease) in cash and cash equivalents 145 (1,809) Cash and cash equivalents - beginning of period 15,366 7,960 ------------ ------------ Cash and Cash Equivalents - end of period $ 15,511 $ 6,151 ============ ============ Supplemental disclosure of cash flow information: Income tax payments $ 3,935 $ 1,964 Interest payments $ 7,864 $ 10,315 Schedule of noncash investing and financing activities: Fixed assets acquired under capital lease $ 495 $ 357 Employee stock ownership plan - - $ 287 Restricted stock awards, net of forfeitures $ 1,264 $ 1,607 Debt Converted into Stock - - $ 2,500 Stock Dividend Distributable $ 30 - - See Notes to Consolidated Financial Statements. 9 STIFEL FINANCIAL CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE A - 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 generally accepted accounting principles 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 generally accepted accounting principles 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 nine months ended September 30, 1998 are not necessarily indicative of the results that may be expected for the year ending December 31, 1998. 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, 1997. Where appropriate, prior years' financial information has been reclassified to conform with the current year presentation. 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 (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 or cash dividends paid if resulting net capital would be less than 5 percent of aggregate debit items. At September 30, 1998, SN & Co. had net capital of $28,819,000 which was 11.80% of its aggregate debit items and $23,934,000 in excess of the minimum required net capital. NOTE C - RECENT ACCOUNTING PRONOUNCEMENTS As of January 1, 1997, the Company adopted the original provisions of, Statements of Financial Accounting Standards ("SFAS") No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities," which was effective for transfers of financial assets made after December 31, 1996, except for transfers of certain financial assets for which the effective date had been delayed for one year. The Company adopted the delayed provisions in 1998. SFAS No. 125 provides financial reporting standards for the derecognition and recognition of financial assets, including the distinction between transfers of financial assets which should be recorded as sales and those which should be recorded as secured borrowings. The adoption of the provisions of SFAS No. 125 had no material effect on the Company's financial condition or results of operations. 10 SFAS No. 130 "Reporting Comprehensive Income" became effective for companies whose fiscal year began after December 15, 1997. SFAS No. 130 establishes standards for the display of comprehensive income. The Company has no reportable items to be included in comprehensive income and therefore comprehensive income and net income are the same. On June 16, 1998, the Financial Accounting Standards Board issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," Effective for fiscal years beginning after June 15, 1999, with earlier adoption recommended. The Company does not expect the impact of the adoption of the provisions to be material to the Company's financial condition or results of operations. NOTE D - EARNINGS PER SHARE ("EPS") During 1997, the Company adopted SFAS 128. The following table reflects a reconciliation between Basic EPS and Diluted EPS.
Three Months Ended September 30, 1998 September 26, 1997 - ------------------------------------------------------------------------------------------------------ (In thousands,except Income Shares Per Income Shares Per per share amount) (Numerator) (Denominator) Share (Numerator) (Denominator) Share Basic Earnings Per Share Income available to shareholders $967 6,544 $0.15 $2,012 5,076 $0.40 - ------------------------------------------------------------------------------------------------------ Diluted Earnings Per Share Effect of Dilutive Securities: Options, ESPP, and deferred compensation - - 312 - - - - 292 - - Convertible debt - - - - - - 97 1,462 - - Income available to common stockholders and assumed conversions $967 6,856 $0.14 $2,109 6,830 $0.31 - ------------------------------------------------------------------------------------------------------ Nine Months Ended September 30, 1998 September 26, 1997 (In thousands,except Income Shares Per Income Shares Per per share amounts) (Numerator) (Denominator) Share (Numerator) (Denominator) Share - ------------------------------------------------------------------------------------------------------ Basic Earnings Per Share Income available to shareholders $4,243 6,513 $0.65 $4,580 4,989 $0.92 - ------------------------------------------------------------------------------------------------------ Diluted Earnings Per Share Effect of Dilutive Securities: Options, ESPP, and deferred compensation - - 374 - - - - 214 - - Convertible debt - - - - - - 290 1,479 - - Income available to common stockholders and assumed conversions $4,243 6,887 $0.62 $4,870 6,682 $0.73 - ------------------------------------------------------------------------------------------------------
11 NOTE E - SUBSEQUENT EVENT On October 23, 1998, the Company's Board of Directors declared a regular quarterly cash dividend of $0.03 per share, payable on November 19, 1998 to stockholders of record November 5, 1998. 12 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition Results of Operations Three months ended September 1998 and September 1997 The Company recorded net earnings of $967,000 or $0.14 per diluted share on total revenues of $34.3 million for the third quarter ended September 30, 1998 compared to net earnings of $2 million or $0.31 per diluted share on revenues of $36.6 million recorded for the same period one year earlier. Revenues from commissions increased $726,000 (5%) to $14.2 million, principally due to increased investment executive production. Main components of the increase were from sales of listed equity securities - up $379,000 (12%); insurance - up $398,000 (37%); and mutual funds up $316,000 (10%); offset by a decrease in sales of over the counter stocks of $297,000 (5%). Revenues from principal transactions decreased $390,000 (8%) to $4.2 million. The decrease resulted primarily from realized and unrealized trading losses on over the counter stocks. Investment banking decreased $1.8 million (22%) to $6.6 million primarily as a result of decreased underwritings for regional financial institutions and Real Estate Investment Trusts ("REITs") due to less favorable market conditions. Interest revenue decreased $1.2 million (20%) to $4.8 million as a result of decreased average customer receivables. Other revenues increased $319,000 (8%) to $4.5 million principally due to increases in fee revenues from investment advisory and management services - up $413,000 (23%); customer service fees - up $358,000 (30%); offset by unrealized losses on various investments held by the Company of $399,000. Total expenses remained relatively unchanged from the quarter ended one year earlier. Employee compensation and benefits, a significant portion of the Company's total expense, remained relatively unchanged in the third quarter of 1998. The variable component of compensation decreased $1.1 million (7%) compared to last year's third quarter primarily due to decreases in performance based and profitability based incentive compensation awards. The fixed component of compensation, principally salaries, increased $1.2 million (23%) as a result of normal year-to-year salary increases and the addition of approximately 80 non-sales associates since September of 1997. Growth occurred in key areas such as Equity Capital Markets and Private Client Group, foundations for the Company's overall growth plans. Communications and office supplies increased $396,000 (24%) to $2.1 million, primarily as a result of costs associated with improvements in communications technology, increased activity in the printing of sales materials, and the addition of seven branch offices since September 1997. 13 Occupancy and equipment rental increased $296,000 (15%) principally due to the addition of seven branch offices mentioned above. Interest expense declined $1.5 million (38%) due to decreased borrowings by the Company to finance customers margin accounts. Nine months ended September 1998 and September 1997 The Company recorded net earnings of $4.2 million or $0.62 per diluted share on revenues of $104.2 million for the nine months ended September 30, 1998 compared to $4.6 million or $0.73 per diluted share on revenues of $99.1 million for the same period one year earlier. Total revenues increased $5 million (5%) as retail investor activity remained strong coupled with increased investment executive production. Commission revenue increased $5 million (14%) principally due to increased investment executive production. Main components of the increase were from sales of mutual funds - up $2.4 million (28%); listed equity securities - up $1.3 million (15%); and insurance - up $903,000 (31%). Principal transaction revenues increased $5 million (34%) due to revenue derived from the underwriting of a unit investment trust by SN & Co. in the first quarter of 1998 and increased sales of fixed income products. Investment banking revenue decreased $6.3 million (32%) for the first nine months of 1998 compared to the previous year's first nine months. The decrease can be attributed to fewer underwritings of Trust Preferred and mortgage REIT transactions. Last year's first nine months were especially strong as $6.4 million of revenue was generated from these transactions, most of which occurred in the first quarter. Interest revenue decreased $1.4 million (8.6%) due to decreased customer receivables. Other revenues increased $2.7 million (23%) for the first nine months of 1998. Main components of the increase resulted from increases in fee revenues from investment advisory and managed account services - up $1.6 million (33%) and customer service fees - up $1 million (31%). Total expenses increased $5.6 million (6%) for the first nine months of 1998 over the previous year's first nine months principally due to increased compensation and benefits. 14 Employee compensation and benefits increased $6.4 million (11%) in the first nine months of 1998 over the same period one- year earlier. A majority of the increase resulted from compensation that is variable in nature and grew in conjunction with the increases in revenues and profitability. This variable component increased $3.5 million (8%) compared to last year's first nine months. The fixed component of compensation, principally salaries, increased $2.9 million (20%) for the same reasons described in the three months results. Communications and supplies increased $1 million (20%) as a result of costs associated with improvements in communications technology, increased activity in the printing of sales and promotional materials and the addition of seven branch offices. Occupancy and equipment rental increased $703,000 (12%) principally due to the addition of seven branch offices mentioned above and a one-time credit recorded in 1997 related to the renegotiation of a long-term office space lease which had been previously accrued. Without the effect of the one-time credit, occupancy and equipment rental would have increased $385,000 (6%). Interest expense declined $2.5 million (35%) due to decreased borrowings by the Company to finance customers margin accounts. Year 2000 The Year 2000 issue is the result of computer programs currently written in a two-digit format rather than four digits to define the applicable year and therefore affecting the ability of computer systems to accurately process dates ending after December 31, 1999. The Company continues to review its computer systems and programs to prepare for the Year 2000 compliance. Such review includes internal and third party software: and more significantly, service providers' computer systems. A significant portion of the Company's internal programs is already year 2000 compliant. The Company's brokerage securities processing system is provided by a leading industry vendor. The Company has contacted and continues to closely monitor the implementation plans of the vendor. The vendor has completed a significant portion of its plans and has begun user testing that will continue through early 1999. The Company believes that the incremental costs associated with modifications for internal software and systems will not be material to the Company's financial statements. However, the Company could be adversely affected if other organizations, including the vendor mentioned above, are unsuccessful in completing the required Year 2000 system modifications. 15 Liquidity and Capital Resources 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. Management believes the funds from operations, available informal short-term credit arrangements, and long-term borrowings, at September 30, 1998, 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 September 30, 1998, Stifel, Nicolaus had net capital of approximately $28.8 million which exceeded the minimum net capital requirements by approximately $23.9 million. 16 PART II. OTHER INFORMATION Item 1. Legal Proceedings On August 7, 1998 the United States Tenth Circuit Court of Appeals affirmed the previous ruling by the United States District Court for the Western District of Oklahoma, to dismiss the State of Oklahoma suit against the Company seeking $7.6 million in compensatory damages and that these damages be trebled. The State of Oklahoma suit alleged that the Company and two former executives of the Company committed violations of the Racketeer Influenced and Corrupt Organizations Act. There were no other material changes in the legal proceedings previously reported in the Company's Annual Report on Form 10-K for the year ended December 31, 1997. 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 There were no reports on Form 8-K filed during the quarter ended September 30, 1998. 17 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: November 13, 1998 By /s/Ronald J. Kruszewski Ronald J. Kruszewski (President and Chief Executive Officer) Date: November 13, 1998 By /s/Stephen J. Bushmann Stephen J. Bushmann (Principal Financial and Accounting Officer) 18 STIFEL FINANCIAL CORP. AND SUBSIDIARIES EXHIBIT INDEX September 30, 1998 Exhibit Number Description - -------------------------------------------------------------------------------- 27 Financial Data Schedule (furnished to the Securities and Exchange Commission for Electronic Data Gathering, Analysis, and Retrieval [EDGAR] purposes only) EX-27 2 EXHIBIT 27 - FINANCIAL DATA SCHEDULE - ARTICLE BD
BD THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENT OF FINANCIAL CONDITION DATED SEPTEMBER 30, 1998 AND THE STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1998 JAN-01-1998 SEP-30-1998 15,687 206,543 0 6,100 26,413 4,616 287,311 24,375 76,560 0 109,117 1,462 20,570 1,021 0 0 54,206 287,311 19,792 14,634 41,822 13,787 2,485 7,861 65,991 7,079 7,079 0 0 4,243 .65 .62
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