-----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, BW939lfTFZf/lCpjAw4IEOu+TK6qCtX6i6PBPyV3KN5B3AEX8tpFcK9PIkZ24of5 khqggpiMv7CQvRpFT61vaA== 0000720672-98-000014.txt : 19980817 0000720672-98-000014.hdr.sgml : 19980817 ACCESSION NUMBER: 0000720672-98-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: CSX SROS: NYSE 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: 98690358 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 JUNE 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 June 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 June 30, 1998: 6,774,516, par value $0.15. Exhibit Index is on page 15. 2 Stifel Financial Corp. And Subsidiaries Form 10-Q Index June 30, 1998 PAGE PART I. FINANCIAL CONDITION Item 1. Financial Statements (Unaudited) Consolidated Statements of Financial Condition -- June 30, 1998 and December 31, 1997 3-4 Consolidated Statements of Operations -- Three Months Ended June 30, 1998 and June 27, 1997 5 Consolidated Statements of Operations -- Six Months Ended June 30, 1998 and June 27, 1997 6 Consolidated Statements of Cash Flows-- Six Months Ended June 30, 1998 and June 27, 1997 7-8 Notes to Consolidated Financial Statements 9-10 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition 11-14 PART II. OTHER INFORMATION Item 1. Legal Proceedings 15 Item 6. Exhibit(s) and Report(s) on Form 8-K 15 Signatures 16 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) June 30, December 31, 1998 1997 ------------ ------------ ASSETS Cash and cash equivalents $ 9,894 $ 15,366 Cash segregated for the exclusive benefit of customers 180 177 Receivable from brokers and dealers 43,747 35,223 Receivable from customers, net of allowance for doubtful accounts of $556 and $556, respectively 222,249 218,301 Securities owned, at fair value 30,799 19,212 Membership in exchanges, at cost 513 513 Office equipment and leasehold improvements, at cost, net of allowances for depreciation and amortization of $11,574 and $10,890, respectively 4,259 2,227 Goodwill, net of accumulated amortization of $1,568 and $1,414, respectively 4,027 4,181 Notes receivable from and advances to officers and employees, net of allowance for doubtful receivables of $1,054 and $2,376, respectively 6,454 4,249 Deferred tax asset 3,924 4,577 Other assets 19,174 11,458 --------- --------- $ 345,220 $ 315,484 ========= ========= 4 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (CONTINUED) (UNAUDITED) (In thousands, except par value and share amounts) June 30, December 31, 1998 1997 ------------ ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Short-term borrowings from banks $ 69,600 $ 89,150 Payable to brokers and dealers 135,733 73,708 Payable to customers 32,994 39,239 Securities sold, but not yet purchased, at fair value 3,508 4,264 Drafts payable 11,512 13,966 Accrued employee compensation 14,827 19,247 Obligations under capital leases 840 522 Accounts payable and accrued expenses 11,753 15,707 Long-term debt 9,970 9,600 --------- --------- Total Liabilities 290,737 265,403 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 6,776,928 and 6,678,223 shares, respectively 1,016 1,002 Additional paid-in capital 37,470 37,006 Retained earnings 20,269 17,425 --------- --------- 58,755 55,433 Less: Treasury stock, at cost, 2,412 and 168,648 shares, respectively 28 1,989 Unamortized expense of restricted stock awards 1,066 185 Unearned employee stock ownership plan shares, at cost, 236,250 shares 3,178 3,178 --------- --------- Total Stockholders' Equity 54,483 50,081 --------- --------- $ 345,220 $ 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 June 30, June 27, 1998 1997 ------------ ------------ REVENUES Commissions $ 13,982 $ 11,879 Principal transactions 6,006 4,850 Investment banking 3,676 4,028 Interest 5,115 6,002 Other 5,293 3,901 --------- --------- 34,072 30,660 EXPENSES Employee compensation and benefits 21,239 17,380 Commissions and floor brokerage 701 739 Communications and office supplies 2,121 1,792 Occupancy and equipment rental 2,223 2,195 Interest 2,883 4,132 Other operating expenses 2,805 2,858 --------- --------- 31,972 29,096 --------- --------- INCOME BEFORE INCOME TAXES 2,100 1,564 Provision for income taxes 876 643 --------- --------- NET INCOME $ 1,224 $ 921 Net income per share: Basic $ 0.19 $ 0.19 Diluted $ 0.18 $ 0.16 Dividends declared per share $ 0.03 $ 0.03 Average common equivalent shares outstanding: Basic 6,533 4,936 Diluted 6,903 6,605 See Notes to Consolidated Financial Statements. 6 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except per share amounts) Six Months Ended June 30, June 27, 1998 1997 --------- --------- REVENUES Commissions $ 27,591 $ 23,299 Principal transactions 15,556 10,117 Investment banking 7,230 11,723 Interest 9,870 10,047 Other 9,664 7,318 --------- --------- 69,911 62,504 EXPENSES Employee compensation and benefits 43,883 37,595 Commissions and floor brokerage 1,350 1,434 Communications and office supplies 4,086 3,452 Occupancy and equipment rental 4,328 3,921 Interest 5,423 6,483 Other operating expenses 5,324 5,303 --------- --------- 64,394 58,188 --------- --------- INCOME BEFORE INCOME TAXES 5,517 4,316 Provision for income taxes 2,241 1,748 --------- --------- NET INCOME $ 3,276 $ 2,568 Net income per share: Basic $ 0.50 $ 0.52 Diluted $ 0.48 $ 0.43 Dividends declared per share $ 0.06 $ 0.06 Average common equivalent shares outstanding: Basic 6,497 4,942 Diluted 6,845 6,597 See Notes to Consolidated Financial Statements. 7 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(In thousands) Six Months Ended June 30, June 27, 1998 1997 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 3,276 $ 2,568 Noncash items included in earnings: Depreciation and amortization 837 775 Bonus notes amortization 336 578 Deferred items 901 1,160 Restricted stock awards amortization 217 57 --------- --------- 5,567 5,138 (Increase) decrease in assets: Operating receivables (12,472) (78,295) Cash segregated for the exclusive benefit of customers (3) 223 Securities owned (11,587) (1,142) Notes receivable from officers and employees (2,541) (444) Other assets (1,938) 1,449 Increase (decrease) in liabilities: Operating payables 55,780 31,892 Securities sold, but not yet purchased (756) 278 Drafts payable, accounts payable and accrued expenses, and accrued employee compensation (11,076) (6,196) --------- --------- Cash Provided By (Used For) Operating Activities $ 20,974 $ (47,097) ========= ========= See Notes to Consolidated Financial Statements. 8 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (UNAUDITED)(In thousands) Six Months Ended June 30, June 27, 1998 1997 --------- --------- Cash Provided By (Used For) Operating Activities - from previous page $ 20,974 $ (47,097) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from: Sale of office equipment - - 3 Sale of investments 51 - - Payments for: Acquisition of office equipment and leasehold improvements (2,221) (571) Acquisition of investments (5,828) (798) --------- --------- Cash Used For Investing Activities (7,998) (1,366) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net (19,550) 48,175 Proceeds from: Issuance of stock 1,397 783 Temporary subordinated debt - - 8,000 Issuance of Long-term debt 370 - - Payments for: Repurchase of stock (86) (1,110) Temporary subordinated debt - - (8,000) Principal payments under capital lease obligation (177) (208) Cash dividends (402) (284) --------- --------- Cash (Used For) Provided By Financing Activities (18,448) 47,356 --------- --------- Decrease in cash and cash equivalents (5,472) (1,107) Cash and cash equivalents - beginning of period 15,366 7,960 --------- --------- Cash and Cash Equivalents-end of period $ 9,894 $ 6,853 ========= ========= Supplemental disclosure of cash flow information: Income tax payments $ 3,867 $ 1,864 Interest payments $ 5,238 $ 5,866 Schedule of noncash investing and financing activities: Fixed assets acquired under capital lease $ 495 $ 292 Employee stock ownership plan - - $ 287 Restricted stock awards, net of forfeitures $ 1,015 - - 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 six months ended June 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 June 30, 1998, SN & Co. had net capital of $29,130,000 which was 11.00% of its aggregate debit items and $23,834,000 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 SFAS No.125, 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 Provision 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 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. NOTE D - EARNINGS PER SHARE During 1997, the Company adopted SFAS 128. The following table reflects a reconciliation between Basic EPS and Diluted EPS.
Three Months Ended June 30, 1998 June 27, 1997 - ----------------------------------------------------------------------------------------------------------- (In thousands,except Income Shares Per Share Income Shares Per Share per share amounts) (Numerator) Denominator Amount (Numerator) (Denominator) Amount Basic Earnings Per Share Income available to shareholders $1,224 6,533 $0.19 $921 4,936 $0.19 - ----------------------------------------------------------------------------------------------------------- Diluted Earnings Per Share Effect of Dilutive Securities: Options, ESPP, and deferred compensation - - 370 - - 180 Convertible debt - - - - 129 1,489 Income available to common stockholders and assumed conversions $1,224 6,903 $0.18 $1,050 6,605 $0.16 - ----------------------------------------------------------------------------------------------------------- Six Months Ended June 30, 1998 June 27, 1997 - ----------------------------------------------------------------------------------------------------------- (In thousands,except Income Shares Per Share Income Shares Per Share per share amounts) (Numerator) Denominator Amount (Numerator) (Denominator) Amount Basic Earnings Per Share Income available to shareholders $3,276 6,497 $0.50 $2,568 4,942 $0.52 Diluted Earnings Per Share Effect of Dilutive Securities: Options, ESPP, and deferred compensation - - 348 - - 166 Convertible debt - - - - 257 1,489 Income available to common stockholders and assumed conversions $3,276 6,845 $0.48 $2,825 6,597 $0.43 - -----------------------------------------------------------------------------------------------------------
NOTE E - SUBSEQUENT EVENT On July 23, 1998, the Company's Board of Directors declared a regular quarterly cash dividend of $0.03 per share, payable on August 20, 1998 to stockholders of record August 6, 1998. ****** 11 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition Results of Operations Three months ended June 1998 and June 1997 The Company recorded net earnings of $1.2 million or $0.18 per diluted share on total revenues of $34.0 million for the second quarter ended June 30,1998 compared to net earnings of $921,000 or $0.16 per diluted share on revenues of $30.7 million recorded for the same period one year earlier. Revenue from commissions increased $2.1 million (18%) to $14.0 million, principally due to increased investment executive production. Main components of the increase were from sales of mutual funds - up $1.1 million (44%); listed equity securities - up $372,000 (13%); over-the-counter equity securities - up $417,000 (9%); and insurance - up $284,000 (25%). Principal transaction revenues are primarily derived from the sale of over-the-counter and fixed income securities. Inventories of these securities are maintained to meet client needs. Realized and unrealized gains and losses that result from holding and trading these securities are included in principal transactions. Revenues from principal transactions increased $1.1 million (24%) to $6.0 million. The increase resulted primarily from higher sales of these products. Other revenues increased $1.4 million (36%) to $5.3 million. Main components of the increase resulted from increases in fee revenues from investment advisory and management services - up $653,000 (43%); customer service fees - up $361,000 (29%); and increases in gains on various investments held by the Company - up $435,000 (257%). Total expenses increased $2.9 million (10%) to $32 million principally as a result of increased compensation and benefits offset by a decrease in interest expense. Compensation and benefits, a significant portion of the Company's total expense, rose $3.9 million (22%) in the second quarter of 1998. 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 $2.9 million (24%) compared to last year's second quarter. The fixed component of compensation, principally salaries, increased $1.0 million (19%) as a result of normal year- to-year salary increases and the addition of approximately 60 non- sales associates since June of 1997. Growth occurred in key areas such as Equity Capital Markets and Investment Services, foundations for the Company's overall growth plans. Communications and Supplies increased $329,000 (18%) to $2.1 million, primarily as a result of costs associated with improvements in communications technology and increased activity in the printing of sales materials. 12 Interest expense declined $1.2 million (30.2%) due to decreased borrowings by the company to finance customers margin accounts. Six months ended June 1998 and June 1997 The Company recorded net earnings of $3.3 million or $0.48 per diluted share on revenues of $70.0 million for the six months ended June 30, 1998 compared to $2.6 million or $0.43 per diluted share on revenues of $62.5 million for same period one year earlier. The increase in net earnings for the first six months of 1998 over the first six months of 1997 is attributed primarily to the increase in revenues. Total revenues increased $7.4 million (12%) as retail investor activity remained strong coupled with increased investment executive production. Commission revenue increased $4.3 million (18%) principally due to increased investment executive production. Main components of the increase were from sales of mutual funds - up $2.1 million (39%); listed equity securities - up $905,000 (16%); over-the- counter equity securities - up $833,000 (9%); and insurance - up $505,000 (28%). Principal transaction revenues increased $5.4 million (54%) principally due to revenue derived from the underwriting of a unit investment trust (trust) by Stifel Nicolaus & Company, Incorporated in the first quarter of 1998. The trust consisted of a portfolio of common stocks issued by financial institutions with operations mainly in the Midwest. Investment banking revenue decreased $4.5 million (38%) for the first six months of 1998 compared to the previous year's first six months. The decrease can be attributed to fewer underwritings of Trust Preferred and mortgage Real Estate Investment Trust (REIT) transactions. Last year's first half was especially strong as $6.4 million of revenue was generated from these transactions, most of which occurred in the first quarter. Other revenues increased $2.3 million (32%) for the first six months of 1998. Main components of the increase resulted from increases in fee revenues from investment advisory and managed account services - up $1.1 million (40%); customer service fees - up $648,000 (31%); and increases in gains on various investments held by the Company - up $631,000 (327%). Total expenses increased $6.2 million (11%) for the first half of 1998 over the previous year's first half principally due to increased compensation and benefits. 13 Compensation and benefits increased $6.3 million (17%) in the first six 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 $4.6 million (17%) compared to last year's first half. The fixed component of compensation, principally salaries, increased $1.7 million (18%) for the same reasons described in the three months results. Communications and supplies increased $634,000 (18%) as a result of costs associated with improvements in communications technology and increased activity in the printing of sales and promotional materials. Interest expense declined $1.1 million (16%) primarily as a result of decreased customer borrowings. 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 are 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 cloesly monitor the implementation plans of the vendor. The vendor has completed a significant portion of its plans and expects to begin user testing in the fall of 1998. 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. 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 June 30, 1998, will provide sufficient resources to meet the present and anticipated financing needs. 14 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, 1998, Stifel, Nicolaus had net capital of approximately $29.1 million which exceeded the minimum net capital requirements by approximately $23.8 million. 15 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 June 30, 1998. 16 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 14,1998 By /s/Ronald J. Kruszewski Ronald J. Kruszewski (President and Chief Executive Officer) Date:August 14,1998 By /s/ Stephen J. Bushmann Stephen J. Bushmann (Principal Financial and Accounting Officer) 17 STIFEL FINANCIAL CORP. AND SUBSIDIARIES EXHIBIT INDEX June 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 JUNE 30, 1998 AND THE STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS DEC-31-1998 JAN-01-1998 JUN-30-1998 10,074 240,562 0 31,888 30,799 4,259 345,220 69,600 74,736 0 132,923 3,508 9,970 1,016 0 0 53,467 345,220 15,556 9,870 27,591 7,230 1,686 5,423 43,883 5,517 5,517 0 0 3,276 .50 .48
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