-----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, CxmbkM3i+dfDns7EFymEJp35Xf8Vkj3W3NgsMqXR9AVRwCaqC3PYe/F6CXpBoF6a Vl20yXO2JVpM5u6QL2cPGA== 0000720672-99-000010.txt : 19990517 0000720672-99-000010.hdr.sgml : 19990517 ACCESSION NUMBER: 0000720672-99-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990514 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: 99623678 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 MARCH 31, 1999 12 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 March 31, 1999 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 (I.R.S. Employer Identification No.) incorporationr 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 April 30, 1999: 6,982,685, par value $0.15. 2 Stifel Financial Corp. And Subsidiaries Form 10-Q Index March 31, 1999 PAGE PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Consolidated Statements of Financial Condition -- March 31, 1999 and December 31, 1998 3 - 4 Consolidated Statements of Operations -- Three Months Ended March 31, 1999 and March 31, 1998 5 Consolidated Statements of Cash Flows-- Three Months Ended March 31, 1999 and March 31, 1998 6 - 7 Notes to Consolidated Financial Statements 8 - 10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 -14 Item 3. Quantitative and Qualitative Disclosures about Market Risk 15 PART II. OTHER INFORMATION Item 1. Legal Proceedings 15 Item 4. Submission of Matters to a Vote of Security Holders 15 - 16 Item 6. Exhibit(s) and Report(s) on Form 8-K 16 Signatures 17 3 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) March 31, December 31, 1999 1998 ----------- ----------- ASSETS Cash and cash equivalents $ 13,100 $ 12,835 Cash segregated for the exclusive benefit of customers 178 177 Receivable from brokers and dealers 12,055 23,946 Receivable from customers, net of allowance for doubtful accounts of $561 and $556, respectively 215,081 213,709 Securities owned, at fair value 27,123 38,632 Membership in exchanges, at cost 513 513 Office equipment and leasehold improvements, at cost, net of allowances for depreciation and amortization of $12,837, and $12,361, respectively 5,884 5,315 Goodwill, net of accumulated amortization of $1,798 and $1,721, respectively 3,797 3,874 Notes receivable from and advances to officers and employees, net of allowance for doubtful receivables of $482 and $482, respectively 6,235 6,460 Deferred tax asset 2,943 3,213 Other assets 22,929 26,331 ----------- ----------- Total Assets $ 309,838 $ 335,005 =========== =========== 4 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (CONTINUED) (UNAUDITED) (In thousands, except par values and share amounts) March 31, December 31, 1999 1998 ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Short-term borrowings from banks $ 39,875 $ 62,890 Payable to brokers and dealers 107,722 104,769 Payable to customers 42,574 37,306 Securities sold, but not yet purchased, at fair value 1,797 998 Drafts payable 14,283 18,210 Accrued employee compensation 12,352 18,320 Obligations under capital leases 740 848 Accounts payable and accrued expenses 13,363 16,117 Long-term debt 20,570 20,570 ----------- ----------- Total Liabilities 253,276 280,028 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 7,376,176 and 7,219,335 shares, respectively 1,107 1,084 Additional paid-in capital 43,260 41,867 Retained earnings 19,782 18,291 ----------- ----------- 64,149 61,242 Less: Treasury stock, at cost, 371,722 and 222,743 shares, respectively 3,632 2,162 Unamortized expense of restricted stock awards 985 1,081 Unearned employee stock ownership plan shares, at cost, 231,800 and 235,866 shares, respectively 2,970 3,022 ----------- ----------- Total Stockholders' Equity 56,562 54,977 ----------- ----------- $ 309,838 $ 335,005 =========== =========== 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 March 31, March 31, 1999 1998 --------- --------- REVENUES Commissions $ 17,265 $ 13,609 Principal transactions 6,441 9,541 Investment banking 3,012 3,563 Interest 4,478 4,755 Other 5,821 4,371 --------- --------- 37,017 35,839 EXPENSES Employee compensation and benefits 23,857 22,644 Communications and office supplies 2,026 1,965 Occupancy and equipment rental 2,563 2,105 Interest 1,970 2,539 Commissions and floor brokerage 774 649 Other operating expenses 3,013 2,519 --------- --------- 34,203 32,421 --------- --------- INCOME BEFORE INCOME TAXES 2,814 3,418 Provision for income taxes 1,028 1,365 --------- --------- NET INCOME $ 1,786 $ 2,053 Net income per share: Basic $ 0.26 $ 0.30 Diluted $ 0.25 $ 0.29 Dividends declared per share $ 0.03 $ 0.03 Average common equivalent shares outstanding: Basic 6,846 6,781 Diluted 7,186 7,160 See Notes to Consolidated Financial Statements. 6 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(In thousands) Three Months Ended March 31, March 31, 1999 1998 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,786 $ 2,053 Noncash items included in earnings: Depreciation and amortization 553 365 Bonus notes amortization 408 431 Deferred items 270 590 Restricted stock awards amortization 103 63 ---------- ---------- 3,120 3,502 Decrease (increase) in assets: Operating receivables 10,519 836 Cash segregated for the exclusive benefit of customers (1) (1) Securities owned 11,509 (6,102) Notes receivable from officers and employees (183) (1,097) Other assets 3,652 572 Increase (decrease) in liabilities: Operating payables 8,221 57,044 Securities sold, but not yet purchased 799 631 Drafts payable, accounts payable and accrued expenses, and accrued employee compensation (12,314) (8,684) ---------- ---------- Cash Flows From Operating Activities 25,322 46,701 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from: Sale of property 5 - - Sale of investments - - 28 Payments for: Acquisition of office equipment and leasehold improvements (1,050) (1,651) Acquisition of investments (250) - - ---------- ---------- Cash Flows From Investing Activities (1,295) (1,623) 7 STIFEL FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (UNAUDITED) (In Thousands) Three Months Ended March 31, March 31, 1999 1998 ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Short-term borrowings, net (23,015) (51,450) Proceeds from: Issuance of stock 1,432 908 Payments for: Repurchase of stock (1,853) (78) Principal payments under capital lease obligation (108) (88) Cash dividends (218) (199) ---------- ---------- Cash Flows From Financing Activities (23,762) (50,907) Increase (decrease) in cash and cash equivalents 265 (5,829) Cash and cash equivalents - beginning of period 12,835 15,366 Cash and Cash Equivalents - end of period $ 13,100 $ 9,537 ========== ========== Supplemental disclosure of cash flow information: Income tax payments $ 12 $ 1,124 Interest payments $ 1,962 $ 2,343 Schedule of noncash investing and financing activities: Employee stock ownership plan $ 40 - - Restricted stock awards and stock units, net of forfeitures $ 303 $ 1,033 Stock Dividend $ 77 $ 30 See Notes to Consolidated Financial Statements. 8 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 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 months ended March 31, 1999 are not necessarily indicative of the results that may be expected for the year ending December 31, 1999. 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, 1998. Where appropriate, prior years' 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 March 31, 1999, SN & Co. had net capital of $29,650,000, which was 12.50% of its aggregate debit items, and $24,907,000 in excess of the minimum required net capital. 9 NOTE C - SEGMENT REPORTING The Company's reportable segments include private client, capital markets, and other. The private client segment includes 157 branch 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 is 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. The Company has not disclosed asset information by segment, as the information is not produced internally and its preparation is impracticable. Information concerning operations in these segments of business is as follows (in thousands): - ----------------------------------------------------------------- Three Months Ended March 31, 1999 1998 - ----------------------------------------------------------------- Revenues Private Client $ 30,641 $ 28,829 Capital Markets 4,723 3,990 Other 1,653 3,020 - ----------------------------------------------------------------- Total Revenues $ 37,017 $ 35,839 ================================================================= Operating Contribution Private Client $ 5,667 $ 5,622 Capital Markets 22 1,056 Other 543 233 - ----------------------------------------------------------------- Total Operating Contribution 6,232 6,911 - ----------------------------------------------------------------- Unallocated Overhead (3,418) (3,493) - ----------------------------------------------------------------- Pre-Tax Income $ 2,814 $ 3,418 ================================================================= 10 NOTE D - EARNINGS PER SHARE ("EPS") Basic EPS is calculated by dividing net earnings 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 months ended March 31, are as follows (in thousands, except per share amounts): 1999 1998 - ----------------------------------------------------------------- Income Available to Common Shareholders Net Income $ 1,786 $ 2,053 - ----------------------------------------------------------------- Weighted Average Share Outstanding Basic Weighted Average Shares Outstanding 6,846 6,781 Potential Common Shares From Employee Benefit Plans 340 379 Diluted Weighted Average Shares Outstanding 7,186 7,160 - ----------------------------------------------------------------- Basic Earnings Per Share $ 0.26 $ 0.30 Diluted Earnings Per Share $ 0.25 $ 0.29 - ----------------------------------------------------------------- NOTE E - SUBSEQUENT EVENTS On April 27, 1999, the Company's Board of Directors declared a regular quarterly cash dividend of $0.03 per share, payable on May 27, 1999 to stockholders of record as of the close of business on May 11, 1999. On April 27, 1999, the Company closed the sale of one of its investment advisory subsidiaries, Todd Investment Advisors, Inc., to a subsidiary of The Western and Southern Life Insurance Company. The sale resulted in an after-tax gain of approximately $1.3 million. ****** 11 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Three months ended March 1999 as compared to three months ended March 1998 The Company recorded net earnings of $1,786,000 or $0.25 per diluted share on total revenues of $37.0 million for the first quarter ended March 31, 1999 compared to net earnings of $2,053,000 or $0.29 per diluted share on total revenues of $35.8 million for the same period one year earlier. The Company's expansion of its Private Client Group during 1998 was evidenced during the first quarter of 1999 when compared to the same period one year earlier. Private client branch offices, investment executives, and independent contractors increased by 11, 19, and 37 respectively over the first quarter of 1998. Additionally, strong markets continued to fuel private client investment activity. Trading volumes on the NYSE and NASDAQ increased 27% and 31% respectively over 1998's first quarter. Total revenues increased $1.2 million primarily as a result of growth in commissions and other revenues which increased $3.7 million (27%) and $1.5 million (33%) respectively, offset by decreases in principal transactions, investment banking and interest revenues, which declined $3.1 million (32%), $551,000 (15%) and $277,000 (6%) respectively. Revenues from commissions rose due to private client expansion and strong markets referred to above. Main components of the increase were from sales of over-the-counter equities, insurance products, and mutual funds, which increased 48%, 91%, and 16% respectively. Revenues from principal transactions decreased primarily due to decreases in revenues generated by the sale of unit investment trusts. During the first quarter of 1998, the Company underwrote a unit investment trust, which generated $3.8 million in revenues. Investment banking revenues declined principally due to decreased new issue equity underwritings. Interest revenue declined as a result of decreased borrowings by customers, combined with decreases in the rates charged to those customers. Other revenues increased principally due to 40% growth in managed account service fees, and 51% growth in money market account fees. 12 Total expenses increased $1.8 million (5%) principally as a result of increased compensation and benefits. Employee compensation and benefits, a significant portion of the Company's total expense, increased $1.2 million (5%) in the first quarter of 1999. The fixed component of compensation, primarily salaries, increased $1.1 million (21%) as a result of normal year-to-year salary increases and the addition of 52 non- sales associates since March 1998. The majority of personnel increases resulted from the expansion of the Private Client Group, related product support departments, and the Information Technology department. Occupancy and Equipment Rental increased $458,000 (22%), principally due to the addition of eleven branch offices and increased depreciation expense related to increases in capitalized equipment to upgrade technology and support private client expansion. Interest expense declined $569,000 (22%) due to decreased borrowings by the Company to finance customer margin accounts, combined with decreases in the rates paid on those borrowings. Other Operating Expenses increased $495,000 (20%) principally due to increases in settlements for customer claims, professional fees for litigation, and travel and entertainment expenses. 13 Year 2000 The Year 2000 issue is the result of computer programs currently written in two-digit format, rather than four-digit, to define the applicable year, which affects the ability of computer systems to accurately process dates ending after December 31, 1999. During March and April of 1999 the Company participated in the industry-wide testing of securities processing in a simulated Year 2000 environment with its third party vendor which has been identified as mission critical. The third party vendor provides record keeping and transaction processing for the Company's customer accounts. No significant items were noted during the testing of the trading and settlement processing. Testing of other record keeping processing on the third-party vendor's system was completed in January of 1999 and no significant items were noted. The Company's Year 2000 plan also addresses other systems, including a variety of vendor supplied software products and a small number of internally created AS400 mainframe programs. The Company has substantially completed implementation of all remedies planned for mission critical systems as of January 1999. The Company will test its internally created AS400 mainframe programs by June 30, 1999. There are currently no plans for specific testing of most vendor-supplied software for which vendors have provided assurance of Year 2000 compliance. 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 interdependent nature of securities transactions and the success of the Company's external counterparties and vendors, including the third-party vendor mentioned above, in dealing with this issue could significantly influence the Company's estimate of the impact the Year 2000 will have on its business. The Company has identified and developed contingency plans for its internally provided mission critical systems, i.e. staffing, back-up power sources and off-site processing. Presently the Company is closely monitoring the development of contingency plans by its mission critical third party vendors, in particular the third party vendor mentioned above. Full development of these contingency plans by the third party vendor is expected by the third quarter. Present plans by the third party vendor include: extra staffing; increased communications with major exchanges and utilities over the January 1, 2000 weekend; moratoriums on staff vacations and time off during December/January period; and readiness to invoke normal disaster recovery plan (backup power, hot site readiness). 14 Forward-Looking Statements The Management's Financial Discussion, including the discussion under "Year 2000," 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, third- party or Company failures to achieve timely, effective remediation of the Year 2000 issues, 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 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 March 31, 1999, 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 March 31, 1999, Stifel, Nicolaus had net capital of approximately $29.7 million which exceeded the minimum net capital requirements by approximately $24.9 million. 15 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, 1998. PART II. OTHER INFORMATION Item 1. Legal Proceedings There have been no material changes in the legal proceedings previously reported in the Company's Annual Report on Form 10-K for the year ended December 31, 1998. Such information is hereby incorporated by reference. Item 4. Submission of Matters to a Vote of Security Holders The Annual Meeting of Stockholders of the Company was held on April 28, 1999. Of 7,045,330 shares issued, outstanding and eligible to be voted at the meeting, 6,728,432 shares, constituting a quorum, were represented in person or by proxy at the meeting. Four matters were submitted to a vote of security holders at the meeting. 1.Election of Three Class I Directors. The first matter submitted was the election of three Class I director nominees to the Board of Directors, each to continue in office until the year 2002. Upon tabulation of the votes cast, it was determined that all three director nominees had been elected. The voting results are set forth below: Name For Withheld ---- --- -------- Bruce A. Beda 6,610,975 117,457 Stuart I. Greenbaum 6,611,103 117,329 Ronald J. Kruszewski 6,611,117 117,315 Because the Company has a staggered Board, the term of office of the following named Class II and III directors, who were not up for election at the 1999 annual meeting, continued after the meeting: Class II (to continue in office until 2000) Charles A. Dill Richard F. Ford John J. Goebel Class III (to continue in office until 2001) Robert E. Lefton James M. Oates George H. Walker, III 16 2.Proposal to Adopt the Amended and Restated Stifel Financial Corp. 1997 Incentive Stock Plan (the "Incentive Plan"). The second matter, a proposal to adopt the Incentive Plan, was approved by a majority of the 7,045,330 shares of the Company's common stock that were issued, outstanding and eligible to vote. The voting results on this matter were as follows: For 4,873,207 Against 742,504 Abstain 20,760 Broker Non-Votes 1,091,961 3.Proposal to Adopt the Stifel Financial Corp. 1999 Executive Incentive Performance Plan (the "Performance Plan"). The third matter, a proposal to adopt the Performance Plan, was approved by a majority of the 7,045,330 shares of the Company's common stock that were issued, outstanding and eligible to vote. The voting results on this matter were as follows: For 5,331,871 Against 274,847 Abstain 29,753 Broker Non-Votes 1,091,961 4.Proposal to Ratify the Appointment of Deloitte & Touche LLP ("Deloitte"). The fourth matter, a proposal to ratify the appointment of Deloitte as the Company's independent auditors for the year ending December 31, 1999, was approved by a majority of the 7,045,330 shares of the Company's common stock that were issued, outstanding and eligible to vote. The voting results on this matter were as follows: For 6,709,834 Against 16,240 Abstain 2,358 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 March 31, 1999. 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: May 14,1999 By /s/ Ronald J. Kruszewski Ronald J. Kruszewski (President and Chief Executive Officer) Date: May 14,1999 By /s/ James M. Zemlyak James M. Zemlyak (Principal Financial and Accounting Officer) 18 STIFEL FINANCIAL CORP. AND SUBSIDIARIES EXHIBIT INDEX March 31, 1999 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 AND THE CONSOLIDATED STATEMENT OF OPERATIONS OF STIFEL FINANCIAL CORP. FILED AS PART OF THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1999 JAN-01-1999 MAR-31-1999 13,278 225,419 0 7,951 27,123 5,884 309,838 39,875 85,130 0 105,904 1,797 20,570 1,107 0 0 55,455 309,838 6,441 4,478 17,265 3,012 900 1,970 23,857 2,814 2,814 0 0 1,786 .26 .25
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