8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 8, 2013

STIFEL FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Delaware	001-09305	43-1273600
(State of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

501 N. Broadway, St. Louis, Missouri 63102-2188

(Address of principal executive offices and zip code)

(314) 342-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On August 8, 2013, Stifel Financial Corp. (“Stifel”) reported its financial results for the three months ended June 30, 2013. A copy of the related press release is attached hereto as Exhibit 99.1.

Stifel will hold a conference call on Thursday, August 8, 2013, at 5:00 p.m. Eastern time. A live audio webcast of the call, as well as a presentation highlighting the company’s results, will be available through Stifel’s web site, www.stifel.com, as well as on all sites within Thomson/CCBN’s Investor Distribution Network. All interested parties are invited to participate by dialing (877) 876-9938 and referencing conference ID #24850913. The conference call slide show is attached hereto as Exhibit 99.2.

The exhibits are being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description of Exhibit
99.1	Press release dated August 8, 2013.
99.2	Investor presentation.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	STIFEL FINANCIAL CORP.
Date: August 8, 2013	By:	/s/ James M. Zemlyak
	Name:	James M. Zemlyak
	Title:	Senior Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit Number	Description of Exhibit
99.1	Press release dated August 8, 2013.
99.2	Investor presentation.

4

EX-99.1

Exhibit 99.1

STIFEL REPORTS SECOND QUARTER 2013 FINANCIAL RESULTS

RECORD QUARTERLY REVENUES

Financial highlights for the three months ended June 30, 2013:

• Record total revenues of $511.4 million, increased 33% compared with the year-ago quarter.

• Investment banking revenues of $122.1 million, increased 81% compared with the year-ago quarter.

• Non-GAAP net income of $44.4 million, or $0.60 per diluted share.

• Net income of $29.4 million, or $0.40 per diluted share.

Financial highlights for the six months ended June 30, 2013:

• Record total revenues of $964.7 million, increased 22% compared with the year-ago period.

• Non-GAAP net income of $84.2 million, or $1.18 per diluted share.

• Net income of $44.1 million, or $0.62 per diluted share.

ST. LOUIS, August 8, 2013 – Stifel Financial Corp. (NYSE: SF) today reported record total revenues of $511.4 million for the three months ended June 30, 2013. The Company reported non-GAAP net income of $44.4 million, or $0.60 per diluted share. On a GAAP basis, the Company reported net income of $29.4 million, or $0.40 per diluted share for the three months ended June 30, 2013, compared with net income of $26.1 million, or $0.42 per diluted share, on total revenues of $384.3 million for the second quarter of 2012. The Company reported non-GAAP net income of $39.9 million, or $0.58 per diluted share, on total revenues of $453.2 million for the three months ended March 31, 2013. A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

For the six months ended June 30, 2013, the Company reported record total revenues of $964.7 million. The Company reported non-GAAP net income of $84.2 million, or $1.18 per diluted share. On a GAAP, basis, the Company reported net income of $44.1 million, or $0.62 per diluted share for the six months ended June 30, 2013, compared with net income of $60.9 million, or $0.97 per diluted share, on total revenues of $793.6 million for the six months ended June 30, 2012. A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

“We are pleased to announce record revenues for the second quarter and for the first six months of 2013 in both the Global Wealth Management and the Institutional Group, especially against the challenging market conditions in the quarter. We are very encouraged with our investment banking results, which demonstrate the breadth of our capabilities. The merger with KBW continues to exceed our expectations, and we are gaining market share in the financial institutions space,” said Ronald J. Kruszewski, Chairman, President and CEO of Stifel.

Kruszewski continued, “This quarter, we look forward to the contributions from the institutional fixed income sales and trading professionals who joined us from Knight Capital Group.”

Summary Results of Operations (Unaudited)
	Three Months Ended											Six Months Ended
(in 000s)	6/30/13		6/30/12		% Change			3/31/13		% Change		6/30/13		6/30/12		% Change
Total revenues	$	511,421	$	384,264		33.1		$	453,240		12.8	$	964,661	$	793,607		21.6
Net revenues	$	498,736	$	374,407		33.2		$	441,780		12.9	$	940,516	$	774,740		21.4
Net income	$	29,435	$	26,136		12.6		$	14,619		101.3	$	44,054	$	60,909		(27.7	)
Non-GAAP net income1	$	44,356	$	26,136		69.7		$	39,876		11.2	$	84,240	$	60,909		38.3
Earnings per share:
Basic	$	0.46	$	0.49		(6.1	)	$	0.24		91.7	$	0.71	$	1.14		(37.7	)
Diluted	$	0.40	$	0.42		(4.8	)	$	0.21		90.5	$	0.62	$	0.97		(36.1	)
Non-GAAP diluted 1	$	0.60	$	0.42		42.9		$	0.58		3.4	$	1.18	$	0.97		21.6
Weighted average number of common shares outstanding:
Basic		64,505		53,569		20.4			60,054		7.4		62,292		53,406		16.6
Diluted		74,090		62,678		18.2			69,189		7.1		71,627		62,700		14.2

¹  A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed under “Non-GAAP Financial Measures.”

1

Business Segment Results

Summary Segment Results (Unaudited)
	Three Months Ended													Six Months Ended
(in 000s)	6/30/13			6/30/12			% Change		3/31/13			% Change		6/30/13			6/30/12			% Change
Net revenues:
Global Wealth Management	$	282,717		$	239,300			18.1	$	266,957			5.9	$	549,674		$	486,908			12.9
Institutional Group		220,476			136,026			62.1		176,437			25.0		396,913			285,270			39.1
Other		(4,457	)		(919	)		384.9		(1,614	)		176.3		(6,071	)		2,562			(337.0	)
	$	498,736		$	374,407			33.2	$	441,780			12.9	$	940,516		$	774,740			21.4
Operating contribution:2
Global Wealth Management	$	78,924		$	61,036			29.3	$	69,499			13.6	$	148,423		$	129,914			14.2
Institutional Group		30,059			17,863			68.3		28,137			6.8		58,196			41,867			39.0
Other		(35,057	)		(35,025	)		0.1		(33,944	)		3.3		(69,001	)		(68,653	)		0.5
	$	73,926		$	43,874			68.5	$	63,692			16.1	$	137,618		$	103,128			33.4

Global Wealth Management

For the quarter ended June 30, 2013, the Global Wealth Management (“GWM”) segment generated pre-tax operating income of $78.9 million, compared with $61.0 million in the second quarter of 2012 and $69.5 million in the first quarter of 2013. Net revenues for the quarter were $282.7 million, compared with $239.3 million in the second quarter of 2012, and $267.0 million in the first quarter of 2013. The increase in net revenues both from the second quarter of 2012 and the first quarter of 2013 is primarily attributable to (1) an increase in commission revenues; (2) increase in investment banking revenues; (3) growth in asset management and service fees; and (4) increased net interest revenues.

• The Private Client Group reported record net revenues of $257.3 million, a 17% increase compared with the second quarter of 2012 and a 6% increase compared with the first quarter of 2013.

• Stifel Bank reported net revenues of $25.4 million, a 34% increase compared with the second quarter of 2012 and a 6% increase compared with the first quarter of 2013.

Institutional Group

For the quarter ended June 30, 2013, the Institutional Group segment generated pre-tax operating income of $30.1 million, compared with $17.9 million in the second quarter of 2012 and $28.1 million in the first quarter of 2013. Net revenues for the quarter were $220.5 million, compared with $136.0 million in the second quarter of 2012 and $176.4 million in the first quarter of 2013. The increase in net revenues from the second quarter of 2012 was primarily attributable to (1) an increase in advisory fees; (2) higher equity institutional brokerage revenues; (3) an increase in equity capital raising revenues; and (4) higher fixed income institutional brokerage revenues. The increase in net revenues from the first quarter of 2013 was primarily attributable to (1) an increase in advisory fees; (2) higher equity capital raising revenues; and (3) an increase in equity institutional brokerage revenues, offset by (1) lower fixed income institutional brokerage revenues; and (2) a decline in fixed income capital raising revenues. Net revenue growth, both year-over-year and sequentially, is attributable to the acquisitions of KBW and, to a lesser extent, Miller Buckfire.

²  A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed under “Non-GAAP Financial Measures.”

2

Institutional brokerage revenues were $107.7 million, a 43% increase compared with the second quarter of 2012 and an 11% increase compared with the first quarter of 2013.

• Equity brokerage revenues were $66.8 million, a 74% increase compared with the second quarter of 2012 and a 28% increase compared with the first quarter of 2013.

• Fixed income brokerage revenues were $40.9 million, an 11% increase compared with the second quarter of 2012 and a 10% decrease compared with the first quarter of 2013.

Investment banking revenues were $106.8 million, an 81% increase compared with the second quarter of 2012 and a 59% increase compared with the first quarter of 2013.

• Equity capital raising revenues were $44.6 million, a 153% increase compared with the second quarter of 2012 and an 83% increase compared with the first quarter of 2013.

• Fixed income capital raising revenues were $14.2 million, a 4% decrease compared with the second quarter of 2012 and a 10% decrease compared with the first quarter of 2013.

• Advisory fee revenues were $48.0 million, an 80% increase compared with the second quarter of 2012 and a 77% increase compared with the first quarter of 2013.

Consolidated Compensation and Benefits Expenses

For the quarter ended June 30, 2013, compensation and benefits expenses were $321.3 million, which included merger-related expenses of $6.0 million, compared with $239.4 million in the second quarter of 2012 and $315.7 million in the first quarter of 2013.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues was 63.0% in the second quarter of 2013, compared with 63.9% in the second quarter of 2012 and 63.8% in the first quarter of 2013. Transition pay, which primarily consists of amortization of upfront notes, signing bonuses and retention awards, as a percentage of net revenues was 4.2% in the second quarter of 2013, compared with 5.0% in the second quarter of 2012 and 4.7% in the first quarter of 2013.

Consolidated Non-Compensation Operating Expenses

For the quarter ended June 30, 2013, non-compensation operating expenses were $126.2 million, which included $15.0 million of merger-related expenses, compared with $91.2 million in the second quarter of 2012 and $102.7 million in the first quarter of 2013.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended June 30, 2013 was 22.2%, compared with 24.4% in the second quarter of 2012 and 21.8% in the first quarter of 2013.

Provision for Income Taxes

The effective income tax rate for the quarter ended June 30, 2013 was 43% compared with 40% in the second quarter of 2012 and 37% in the first quarter of 2013. The higher tax rate in the second quarter of 2013 was attributable to the impact of the results of our foreign subsidiaries to the income tax provision.

3

Statement of Financial Condition (Unaudited)

Total assets increased 38% to $8.5 billion as of June 30, 2013 from $6.1 billion as of June 30, 2012. The increase is primarily attributable to growth of Stifel Bank, the Company’s bank subsidiary, which as of June 30, 2013 has grown its assets to $4.3 billion from $3.1 billion as of June 30, 2012. As of June 30, 2013, Stifel Bank’s investment portfolio of $3.0 billion increased 60% from June 30, 2012, with more than 99% of the investment portfolio comprised of investment grade securities, of which more than 70% were Government-Sponsored Enterprise guaranteed MBS or AAA-rated investments. The increase in total assets from June 30, 2012 is also attributable to the acquisition of KBW that was completed in the first quarter of 2013. In addition to the net assets acquired, the Company recognized goodwill of $310.7 million, which is based on preliminary estimates and is subject to change upon the completion of the valuation. The Company’s broker-dealer subsidiaries gross assets and liabilities, including trading inventory, stock loan/borrow, receivables and payables from/to brokers, dealers and clearing organizations and clients, fluctuate with business levels and overall market conditions.

Total stockholders’ equity as of June 30, 2013 increased $526.1 million, or 38%, to $1.9 billion from $1.4 billion as of June 30, 2012. The increase is primarily attributable to the Company’s acquisition of KBW.

4

Non-GAAP Financial Measures

The Company utilized non-GAAP calculations of presented net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share as additional measures to aid in understanding and analyzing the Company’s financial results for the three and six months ended June 30, 2013. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company’s core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company’s results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance. These non-GAAP amounts exclude compensation expense related to the granting of stock awards with no continuing service requirement issued as retention as part of the acquisition of KBW and certain compensation and non-compensation operating expenses associated with the acquisitions of KBW, Miller Buckfire and the Knight Capital Fixed Income business.

A limitation of utilizing these non-GAAP measures of net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expenses ratios, pre-tax margin and diluted earnings per share is that the GAAP accounting effects of these merger-related charges do in fact reflect the underlying financial results of the Company’s business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the Company believes that GAAP measures of net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share and the same respective non-GAAP measures of the Company’s financial performance should be considered together.

The following table provides details with respect to reconciling net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share on a GAAP basis for the three and six months ended June 30, 2013 to the aforementioned expenses on a non-GAAP basis for the same period.

Reconciliation of GAAP to Non-GAAP Earnings (Unaudited)
	Three Months Ended June 30, 2013							Six Months Ended June 30, 2013
(in 000s, except per share amounts)	GAAP		Merger- related			Non-GAAP		GAAP		Merger- related			Non-GAAP
Net revenues	$	498,736	$	1,736		$	500,472	$	940,516	$	1,744		$	942,260
Non-interest expenses:
Compensation and benefits		321,331		(6,018	)		315,313		637,058		(39,804	)		597,254
Non-compensation operating expenses		126,207		(14,974	)		111,233		228,914		(21,526	)		207,388
Total non-interest expenses		447,538		(20,992	)		426,546		865,972		(61,330	)		804,642
Income before income taxes		51,198		22,728			73,926		74,544		63,074			137,618
Provision for income taxes		21,763		7,807			29,570		30,490		22,888			53,378
Net income	$	29,435	$	14,921		$	44,356	$	44,054	$	40,186		$	84,240
Earnings per share::
Basic	$	0.46	$	0.23		$	0.69	$	0.71	$	0.64		$	1.35
Diluted	$	0.40	$	0.20		$	0.60	$	0.62	$	0.56		$	1.18
As a percentage of net revenues:
Compensation and benefits		64.4					63.0		67.7					63.4
Non-compensation operating expenses		25.3					22.2		24.4					22.0
Income before income taxes		10.3					14.8		7.9					14.6

5

Conference Call Information

Stifel Financial Corp. will host its second quarter 2013 financial results conference call on Thursday, August 8, 2013, at 5:00 p.m. Eastern time. The conference call may include forward-looking statements.

All interested parties are invited to listen to Stifel’s Chairman, President, and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID #24850913. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

Company Information

Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel clients are served through Stifel, Nicolaus & Company, Incorporated in the U.S., through Stifel Nicolaus Canada Inc. in Canada, through Stifel Nicolaus Europe Limited in the United Kingdom and Europe, and through Keefe, Bruyette & Woods, Inc. in the U.S. and Europe. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank & Trust offers a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. offers trust and related services. To learn more about Stifel, please visit the Company’s web site at www.stifel.com.

Forward-Looking Statements

This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. Stifel Financial Corp. disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

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Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in thousands, except per share amounts)	6/30/13		6/30/12		% Change			3/31/13		% Change			6/30/13		6/30/12		% Change
Revenues:
Commissions	$	157,168	$	127,427		23.3		$	148,648		5.7		$	305,816	$	250,730		22.0
Principal transactions		111,448		91,564		21.7			107,244		3.9			218,692		207,797		5.2
Investment banking		122,114		67,363		81.3			78,379		55.8			200,493		137,801		45.5
Asset management and service fees		76,088		65,311		16.5			68,912		10.4			145,000		126,129		15.0
Other income		11,670		5,418		115.4			20,212		(42.3	)		31,882		18,712		70.4
Operating revenues		478,488		357,083		34.0			423,395		13.0			901,883		741,169		21.7
Interest revenue		32,933		27,181		21.2			29,845		10.3			62,778		52,438		19.7
Total revenues		511,421		384,264		33.1			453,240		12.8			964,661		793,607		21.6
Interest expense		12,685		9,857		28.7			11,460		10.7			24,145		18,867		28.0
Net revenues		498,736		374,407		33.2			441,780		12.9			940,516		774,740		21.4
Non-interest expenses:
Compensation and benefits		321,331		239,374		34.2			315,727		1.8			637,058		494,078		28.9
Occupancy and equipment rental		41,821		32,320		29.4			34,048		22.8			75,869		63,111		20.2
Communications and office supplies		25,936		20,797		24.7			22,979		12.9			48,915		41,170		18.8
Commission and floor brokerage		10,031		7,747		29.5			9,058		10.8			19,089		15,359		24.3
Other operating expenses		48,419		30,295		59.8			36,622		32.2			85,041		57,894		46.9
Total non-interest expenses		447,538		330,533		35.4			418,434		7.0			865,972		671,612		28.9
Income before income taxes		51,198		43,874		16.7			23,346		119.3			74,544		103,128		(27.7	)
Provision for income taxes		21,763		17,738		22.7			8,727		149.4			30,490		42,219		(27.8	)
Net income	$	29,435	$	26,136		12.6		$	14,619		101.3		$	44,054	$	60,909		(27.7	)
Earnings per share:
Basic	$	0.46	$	0.49		(6.1	)	$	0.24		91.7		$	0.71	$	1.14		(37.7	)
Diluted	$	0.40	$	0.42		(4.8	)	$	0.21		90.5		$	0.62	$	0.97		(36.1	)
Weighted average number of common shares outstanding:
Basic		64,505		53,569		20.4			60,054		7.4			62,292		53,406		16.6
Diluted		74,090		62,678		18.2			69,189		7.1			71,627		62,700		14.2

(in thousands, except per share, employee and location amounts)
	6/30/13		6/30/12		% Change		3/31/13		% Change
Statistical Information:
Book value per share	$	30.05	$	25.63		17.2	$	30.13		(0.3	)
Financial advisors3		2,069		2,028		2.0		2,063		0.3
Full-time associates		5,759		5,196		10.8		5,680		1.4
Locations		357		332		7.5		357		—
Total client assets	$	150,628,000	$	131,026,000		15.0	$	147,119,000		2.4

³  Includes 145, 156 and 148 independent contractors at June 30, 2013 and 2012 and March 31, 2013, respectively.

7

Global Wealth Management Summary Results of Operations (Unaudited)
	Three Months Ended											Six Months Ended
(in 000s)	6/30/13		6/30/12		% Change		3/31/13		% Change			6/30/13		6/30/12		% Change
Revenues:
Commissions	$	104,576	$	88,417		18.3	$	102,086		2.4		$	206,662	$	179,437		15.2
Principal transactions		56,313		55,058		2.3		56,307		—			112,620		113,439		(0.7	)
Asset management and service fees		75,976		65,169		16.6		68,934		10.2			144,910		125,755		15.2
Net interest		24,505		18,227		34.5		21,486		14.1			45,991		35,869		28.2
Investment banking		15,334		8,384		82.9		11,103		38.1			26,437		20,786		27.2
Other income		6,013		4,045		48.6		7,041		(14.6	)		13,054		11,622		12.3
Net revenues		282,717		239,300		18.1		266,957		5.9			549,674		486,908		12.9
Non-interest expenses:
Compensation and benefits		163,156		140,629		16.0		157,596		3.5			320,752		283,980		12.9
Non-compensation operating expenses		40,637		37,635		8.0		39,862		1.9			80,499		73,014		10.3
Total non-interest expenses		203,793		178,264		14.3		197,458		3.2			401,251		356,994		12.4
Income before income taxes	$	78,924	$	61,036		29.3	$	69,499		13.6		$	148,423	$	129,914		14.2
As a percentage of net revenues:
Compensation and benefits		57.7		58.8				59.0					58.4		58.3
Non-compensation operating expenses		14.4		15.7				15.0					14.6		15.0
Income before income taxes		27.9		25.5				26.0					27.0		26.7

Stifel Bank & Trust (Unaudited) Key Statistical Information
(in 000s, except percentages)	6/30/13			6/30/12			% Change		3/31/13			% Change
Other information:
Assets	$	4,306,447		$	3,052,867			41.1	$	3,872,677			11.2
Investment securities		2,956,073			1,844,875			60.2		2,440,146			21.1
Retained loans, net		983,788			709,079			38.7		886,597			11.0
Loans held for sale		152,246			117,166			29.9		165,698			(8.1	)
Deposits		4,007,050			2,776,684			44.3		3,556,568			12.7
Allowance as a percentage of loans		1.10	%		0.88	%				1.01	%
Non-performing assets as a percentage of total assets		0.03	%		0.08	%				0.04	%

8

Institutional Group Summary Results of Operations (Unaudited)
	Three Months Ended											Six Months Ended
(in 000s)	6/30/13		6/30/12		% Change		3/31/13		% Change			6/30/13		6/30/12		% Change
Revenues:
Commissions	$	52,592	$	39,010		34.8	$	46,562		13.0		$	99,154	$	71,293		39.1
Principal transactions		55,135		36,506		51.0		50,938		8.2			106,073		94,358		12.4
Capital raising		58,813		32,349		81.8		40,095		46.7			98,908		74,780		32.3
Advisory fees		47,967		26,630		80.1		27,180		76.5			75,147		42,235		77.9
Investment banking		106,780		58,979		81.0		67,275		58.7			174,055		117,015		48.7
Other4		5,969		1,531		289.7		11,662		(48.8	)		17,631		2,604		577.0
Net revenues		220,476		136,026		62.1		176,437		25.0			396,913		285,270		39.1
Non-interest expenses:
Compensation and benefits		136,481		85,109		60.4		107,636		26.8			244,117		179,539		36.0
Non-compensation operating expenses		53,936		33,054		63.2		40,664		32.6			94,600		63,864		48.1
Total non-interest expenses		190,417		118,163		61.1		148,300		28.4			338,717		243,403		39.2
Income before income taxes	$	30,059	$	17,863		68.3	$	28,137		6.8		$	58,196	$	41,867		39.0
As a percentage of net revenues:
Compensation and benefits		61.9		62.6				61.0					61.5		62.9
Non-compensation operating expenses		24.5		24.3				23.1					23.8		22.4
Income before income taxes		13.6		13.1				15.9					14.7		14.7

Institutional Group Brokerage & Investment Banking Revenues (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/13		6/30/12		% Change			3/31/13		% Change			6/30/13		6/30/12		% Change
Institutional brokerage:
Equity	$	66,788	$	38,466		73.6		$	52,000		28.4		$	118,788	$	82,638		43.7
Fixed income		40,939		37,050		10.5			45,500		(9.9	)		86,439		83,013		4.1
Institutional brokerage		107,727		75,516		42.7			97,500		10.5			205,227		165,651		23.9
Investment banking:
Capital raising:
Equity		44,640		17,651		152.9			24,380		83.1			69,020		49,201		40.3
Fixed income		14,173		14,698		(3.6	)		15,715		(9.8	)		29,888		25,579		16.8
Capital raising		58,813		32,349		81.8			40,095		46.7			98,908		74,780		32.3
Advisory fees:		47,967		26,630		80.1			27,180		76.5			75,147		42,235		77.9
Investment banking	$	106,780	$	58,979		81.0		$	67,275		58.7		$	174,055	$	117,015		48.7

Investor Relations

Sarah Anderson

(415) 364-2500, investorrelations@stifel.com

⁴  Includes net interest and other income.

9

EX-99.2

2

nd

Quarter 2013

Financial Results Presentation

August 8, 2013

Exhibit 99.2

1

Disclaimer

Forward-Looking Statements

This

presentation

may

contain

“forward-looking

statements”

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995

that

involve

significant

risks,

assumptions,

and

uncertainties,

including

statements

relating

to

the

market

opportunity

and

future

business

prospects

of

Stifel

Financial

Corp.,

as

well

as

Stifel,

Nicolaus

&

Company,

Incorporated

and

its

subsidiaries

(collectively,

“SF”

or

the

“Company”).

These

statements

can

be

identified

by

the

use

of

the

words

“may,”

“will,”

“should,”

“could,”

“would,”

“plan,”

“potential,”

“estimate,”

“project,”

“believe,”

“intend,”

“anticipate,”

“expect,”

and

similar

expressions.

In

particular,

these

statements

may

refer

to

our

goals,

intentions,

and

expectations,

our

business

plans

and

growth

strategies,

our

ability

to

integrate

and

manage

our

acquired

businesses,

estimates

of

our

risks

and

future

costs

and

benefits,

and

forecasted

demographic

and

economic

trends

relating

to

our

industry.

You

should

not

place

undue

reliance

on

any

forward-looking

statements,

which

speak

only

as

of

the

date

they

were

made.

We

will

not

update

these

forward-looking

statements,

even

though

our

situation

may

change

in

the

future,

unless

we

are

obligated

to

do

so

under

federal

securities laws.

Actual

results

may

differ

materially

and

reported

results

should

not

be

considered

as

an

indication

of

future

performance.

Factors

that

could

cause

actual

results

to

differ

are

included

in

the

Company’s

annual

and

quarterly

reports

and

from

time

to

time

in

other

reports

filed

by

the

Company

with

the

Securities

and

Exchange

Commission

and

include,

among

other

things,

changes

in

general

economic

and

business

conditions,

actions

of

competitors,

regulatory

and

legal

actions,

changes

in

legislation,

and

technology

changes.

Use

of

Non-GAAP

Financial

Measures

The

Company

utilized

non-GAAP

calculations

of

presented

net

revenues,

compensation

and

benefits,

non-compensation

operating

expenses,

income

before

income

taxes,

provision

for

income

taxes,

net

income,

compensation

and

non-compensation

operating

expense

ratios,

pre-tax

margin

and

diluted

earnings

per

share

as

an

additional

measure

to

aid

in

understanding

and

analyzing

the

Company’s

financial

results

for

the

three

and

six

months

ended

June

30,

2013.

Specifically,

the

Company

believes

that

the

non-GAAP

measures

provide

useful

information

by

excluding

certain

items

that

may

not

be

indicative

of

the

Company’s

core

operating

results

and

business

outlook.

The

Company

believes

that

these

non-GAAP

measures

will

allow

for

a

better

evaluation

of

the

operating

performance

of

the

business

and

facilitate

a

meaningful

comparison

of

the

Company’s

results

in

the

current

period

to

those

in

prior

periods

and

future

periods.

Reference

to

these

non-GAAP

measures

should

not

be

considered

as

a

substitute

for

results

that

are

presented

in

a

manner

consistent

with

GAAP.

These

non-GAAP

measures

are

provided

to

enhance

investors'

overall

understanding

of

the

Company’s

financial

performance.

2

Chairman’s Comments

“We

are

pleased

to

announce

record

revenues

for

the

second

quarter

and

for

the

first

six

months

of

2013

in

both

the

Global

Wealth

Management

and

the

Institutional

Group,

especially

against

the

challenging

market

conditions

in

the

quarter.

We

are

very

encouraged

with

our

investment

banking

results,

which

demonstrate

the

breadth

of

our

capabilities.

The

merger

with

KBW

continues

to

exceed

our

expectations,

and

we

are

gaining

market

share

in

the

financial

institutions

space.

Thi

s quarter,

we

look

forward

to

the

contributions

from

the

institutional

fixed

income

sales

and

trading

professionals

who

joined

us

from

Knight

Capital

Group.”

KBW Update

First Half Performance

Advisory

#1 by number of FIG mergers

#1 by number of Bank mergers

#1 by Bank deal value

Representative of the acquirer or seller on 7 out of the 10

largest bank deals

Capital Markets

Bookrunner on all four bank initial public offerings in the

first half

Notable  Q2 Capital Markets Bookrun Offerings

Zions Bancorporation -

$301 million preferred offering

First PacTrust Bancorp -

$40 million preferred offering

First NBC Bank -

$115 million initial public offering

Fidelity Southern Corporation -

$69 million follow-on

offering

KBW Equities

Superior recognition in Greenwich Associates

rankings for Research, Sales and Trading

Improving equity trading market share:

Market share in adv. volume for KBW

Regional Bank Index (KRX) components was

4.6% for 1H 2013, compared to 3.1% for 1H

2012

Market share in adv. volume for small-cap

banks was 8.4% for 1H 2013, compared to

5.2% for 1H 2012

Successful July Community Bank Conference:

Record attendance with over 700 attendees

and over 1,500 investor meetings organized

Stifel / KBW fixed income:

Integration efforts underway

M&A Statistics Source: SNL Financial; Includes transactions announced since 1/1/2013; Data as of 7/1/2013

Note:

Includes

only

whole

institution

transactions

in

the

United

States

Capital markets offerings inclusive of select Stifel transactions pre-closing

Small-cap

banks

includes

the

largest

50

banks

under

KBW

Research

coverage

sub-$1bn

market

cap.

Financial

Financial

Results

Results

Stifel Financial Corp. Results

Three months ended June 30, 2013

5

($ in thousands, except per share amounts)

GAAP

Non-Core

Non-GAAP

6/30/12

% Change

3/31/13

% Change

Total revenues

511,421

$       

1,736

$           

513,157

$       

384,264

$       

33.5%

453,240

$    

13.2%

Interest expense

12,685

-

12,685

9,857

28.7%

11,460

10.7%

Net revenues

498,736

1,736

500,472

374,407

33.7%

441,780

$    

13.3%

Compensation and benefits

321,331

(6,018)

315,313

239,374

31.7%

281,941

11.8%

Non-comp operating expenses

126,207

(14,974)

111,233

91,159

22.0%

96,155

15.7%

Total non-interest expenses

447,538

(20,992)

426,546

330,533

29.0%

378,096

12.8%

Income before income taxes

51,198

22,728

73,926

43,874

68.5%

63,684

16.1%

Provision for income taxes

21,763

7,807

29,570

17,738

66.7%

23,808

24.2%

Net income

29,435

$         

14,921

$         

44,356

$         

26,136

$         

69.7%

39,876

$      

11.2%

Earnings per share:

Diluted

0.40

$              

0.60

$              

0.42

$              

42.9%

0.58

$           

3.4%

Weighted average number of shares outstanding:

Diluted

74,090

74,090

62,678

18.2%

69,189

7.1%

Ratios to net revenues:

Compensation and benefits

64.4%

63.0%

63.9%

63.8%

Non-comp operating expenses

25.3%

22.2%

24.4%

21.8%

Income before income taxes

10.3%

14.8%

11.7%

14.4%

Three Months Ended June 30, 2013

Three Months Ended

(1)

Non-core adjustments consist of merger-related revenues and expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business and Miller Buckfire.

_________________________________________________________

(1)

6

Three Months Ended

($ in thousands)

9/30/13

12/31/13

Estimate

Actual

Estimate

Estimate

Operating expenses:

Compensation

6,200

$      

6,000

$      

2,500

$      

400

$          

Non-Compensation Operating Expenses

6,800

15,000

5,000

7,100

Total estimated non-core operating expenses

13,000

21,000

7,500

7,500

Retention - KFI

-

-

22,000

-

Total estimated non-core operating expenses - Acquisition-related

13,000

$    

21,000

$    

29,500

$    

7,500

$      

6/30/13

Non-Core Expense Projections

Acquisition-Related Expenses

Stifel Financial Corp. Results

Six months ended June 30, 2013

7

($ in thousands, except per share amounts)

GAAP

Non-Core

Non-GAAP

6/30/12

% Change

Total revenues

964,661

$       

1,744

$           

966,405

$       

793,607

$       

21.8%

Interest expense

24,145

-

24,145

18,867

28.0%

Net revenues

940,516

1,744

942,260

774,740

21.6%

Compensation and benefits

637,058

(39,804)

597,254

494,078

20.9%

Non-comp operating expenses

228,914

(21,526)

207,388

177,534

16.8%

Total non-interest expenses

865,972

(61,330)

804,642

671,612

19.8%

Income before income taxes

74,544

63,074

137,618

103,128

33.4%

Provision for income taxes

30,490

22,888

53,378

42,219

26.4%

Net income

44,054

$         

40,186

$         

84,240

$         

60,909

$         

38.3%

Earnings per share:

Diluted

0.62

$              

1.18

$              

0.97

$              

21.6%

Weighted average number of shares outstanding:

Diluted

71,627

71,627

62,700

14.2%

Ratios to net revenues:

Compensation and benefits

67.7%

63.4%

63.8%

Non-comp operating expenses

24.4%

22.0%

22.9%

Income before income taxes

7.9%

14.6%

13.3%

Six Months Ended June 30, 2013

Six Months Ended

(1)

Non-core adjustments consist of a charges related to expensing stock

awards issued as retention in connection with the acquisition of KBW and other merger-related revenues and

expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business and Miller Buckfire.

_________________________________________________________

(1)

Source of Revenues

8

($ in thousands)

6/30/13

6/30/12

%

Change

3/31/13

%

Change

6/30/13

6/30/12

%

Change

Commissions

157,168

$   

127,427

$   

23.3%

148,648

$       

5.7%

305,816

$   

250,730

$   

22.0%

Principal transactions

111,448

91,564

21.7%

107,244

3.9%

218,692

207,797

5.2%

Brokerage revenues

268,616

218,991

22.7%

255,892

5.0%

524,508

458,527

14.4%

Capital raising

74,146

40,733

82.0%

51,199

44.8%

125,345

95,566

31.2%

Advisory

47,968

26,630

80.1%

27,180

76.5%

75,148

42,235

77.9%

Investment banking

122,114

67,363

81.3%

78,379

55.8%

200,493

137,801

45.5%

Asset mgt and service fees

76,088

65,311

16.5%

68,912

10.4%

145,000

126,129

15.0%

Other

11,670

5,418

115.4%

20,212

(42.3%)

31,882

18,712

70.4%

    Total operating revenues

478,488

357,083

34.0%

423,395

13.0%

901,883

741,169

21.7%

Interest revenue

32,933

27,181

21.2%

29,845

10.3%

62,778

52,438

19.7%

    Total revenues

511,421

384,264

33.1%

453,240

12.8%

964,661

793,607

21.6%

Interest expense

12,685

9,857

28.7%

11,460

10.7%

24,145

18,867

28.0%

    Net revenues

498,736

$   

374,407

$   

33.2%

441,780

$       

12.9%

940,516

$   

774,740

$   

21.4%

Three Months Ended

Six Months Ended

($ in thousands)

6/30/13

6/30/12

%

Change

3/31/13

%

Change

6/30/13

6/30/12

%

Change

Private client group

160,889

$     

143,475

$     

12.1%

158,392

$     

1.6%

319,282

$     

292,876

$     

9.0%

Equity brokerage

66,788

38,466

73.6%

52,000

28.4%

118,788

82,638

43.7%

Fixed income brokerage

40,939

37,050

10.5%

45,500

(9.9%)

86,439

83,013

4.1%

Institutional brokerage

107,727

75,516

42.7%

97,500

10.5%

205,227

165,651

23.9%

Total Brokerage Revenues

268,616

$     

218,991

$     

22.7%

255,892

$     

5.0%

524,509

$     

458,527

$     

14.4%

Three Months Ended

Six Months Ended

9

Brokerage Revenues by Segment

Core Non-Interest Expenses

Three months ended June 30, 2013

($ in thousands)

6/30/13

(1)

6/30/12

% Change

3/31/13

% Change

6/30/13

(1)

6/30/12

3/31/13

Net revenues

500,472

$     

374,407

$     

33.7%

441,788

$     

13.3%

100.0%

100.0%

100.0%

Compensation and benefits

294,446

219,004

34.4%

259,135

13.6%

58.8%

58.5%

58.7%

Transitional pay

(2)

20,867

20,370

2.4%

22,806

(8.5%)

4.2%

5.4%

5.2%

Total compensation and benefits

315,313

239,374

31.7%

281,941

11.8%

63.0%

63.9%

63.8%

Occupancy and equipment rental

38,306

32,320

18.5%

31,501

21.6%

7.7%

8.6%

7.1%

Communication and office supplies

24,604

20,797

18.3%

21,858

12.6%

4.9%

5.6%

4.9%

Commissions and floor brokerage

9,616

7,747

24.1%

8,669

10.9%

1.9%

2.1%

2.0%

Other operating expenses

38,707

30,295

27.8%

34,127

13.4%

7.7%

8.1%

7.6%

Total non-comp operating expenses

111,233

91,159

22.0%

96,155

15.7%

22.2%

24.3%

21.8%

Total non-interest expense

426,546

330,533

29.0%

378,096

12.8%

85.2%

88.3%

85.6%

Income before income taxes

73,926

43,874

68.5%

63,692

16.1%

14.8%

11.7%

14.4%

Provision for income taxes

29,570

17,738

66.7%

23,808

24.2%

5.9%

4.6%

5.4%

Non-GAAP net income

44,356

$       

26,136

$       

69.7%

39,884

$       

11.2%

8.9%

7.0%

9.0%

Non-core expenses (after-tax)

(14,921)

-

(25,265)

GAAP net income

29,435

$       

26,136

$       

14,619

$       

Three Months Ended

% of Net revenues

10

_________________________________________________________

(1)

Excludes non-core  adjustments consisting of merger-related revenues and expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business and Miller Buckfire.

(2)

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

Core Non-Interest Expenses

Six months ended June 30, 2013

($ in thousands)

6/30/13

(1)

6/30/12

% Change

6/30/13

(1)

6/30/12

Net revenues

942,260

$     

774,740

$     

21.6%

100.0%

100.0%

Compensation and benefits

555,424

455,336

22.0%

58.9%

58.8%

Transitional pay

(2)

41,830

38,742

8.0%

4.4%

5.0%

Total compensation and benefits

597,254

494,078

20.9%

63.4%

63.8%

Occupancy and equipment rental

69,808

63,111

10.6%

7.4%

8.1%

Communication and office supplies

46,462

41,170

12.9%

4.9%

5.3%

Commissions and floor brokerage

18,285

15,359

19.1%

1.9%

2.0%

Other operating expenses

72,833

57,894

25.8%

7.7%

7.5%

Total non-comp operating expenses

207,388

177,534

16.8%

22.0%

22.9%

Total non-interest expense

804,642

671,612

19.8%

85.4%

86.7%

Income before income taxes

137,618

103,128

33.4%

14.6%

13.3%

Provision for income taxes

53,378

42,219

26.4%

5.7%

5.3%

Non-GAAP net income

84,240

$       

60,909

$       

38.3%

8.9%

7.9%

Non-core expenses (after-tax)

(40,186)

-

GAAP net income

44,054

$       

60,909

$       

Six Months Ended

% of Net revenues

11

_________________________________________________________

(1)

Excludes non-core  adjustments consisting of a charge related to expensing stock awards issued as retention in connection with the acquisition of KBW and other merger-related

revenues and expenses associated with our acquisitions of KBW, the Knight Capital Fixed Income business and Miller Buckfire.

(2)

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

Segment Comparison -

Core

12

($ in thousands)

6/30/13

(1)

6/30/12

%

Change

3/31/13

%

Change

6/30/13

(1)

6/30/12

%

Change

Net revenues:

Global Wealth Management

282,717

$  

239,300

$  

18.1%

266,957

$  

5.9%

549,674

$  

486,908

$  

12.9%

Institutional Group

220,476

136,026

62.1%

176,437

25.0%

396,913

285,270

39.1%

Other

(2,721)

(919)

196.1%

(1,606)

69.4%

(4,327)

2,562

(268.9%)

500,472

$  

374,407

$  

33.7%

441,788

$  

13.3%

942,260

$  

774,740

$  

21.6%

Operating contribution:

Global Wealth Management

78,924

$    

61,036

$    

29.3%

69,499

$    

13.6%

148,423

$  

129,914

$  

14.2%

Institutional Group

30,059

17,863

68.3%

28,137

6.8%

58,196

41,867

39.0%

Other

(35,057)

(35,025)

0.2%

(33,944)

3.4%

(69,001)

(68,653)

0.6%

73,926

$    

43,874

$    

68.5%

63,692

$    

16.2%

137,618

$  

103,128

$  

33.4%

Three Months Ended

Six Months Ended

(1)

Core (non-GAAP) results for the three and six months ended June 30, 2012 are the same as GAAP results.

_________________________________________________________

Global Wealth Management

($ in thousands)

6/30/13

6/30/12

% Change

3/31/13

% Change

6/30/13

6/30/12

% Change

Commissions

104,576

$   

88,417

$     

18.3%

102,086

$   

2.4%

206,662

$   

179,437

$   

15.2%

Principal transactions

56,313

55,058

2.3%

56,307

0.0%

112,620

113,439

(0.7%)

Asset management & service fees

75,976

65,169

16.6%

68,934

10.2%

144,910

125,755

15.2%

Net interest

24,505

18,227

34.5%

21,486

14.1%

45,991

35,869

28.2%

Investment banking

15,334

8,384

82.9%

11,103

38.1%

26,437

20,786

27.2%

Other income

6,013

4,045

48.7%

7,041

(14.6%)

13,054

11,622

12.3%

Net revenues

282,717

239,300

18.1%

266,957

5.9%

549,674

486,908

12.9%

Compensation and benefits

163,156

140,629

16.0%

157,596

3.5%

320,752

283,980

12.9%

Non-comp operating expenses

40,637

37,635

8.0%

39,862

1.9%

80,499

73,014

10.3%

Total non-interest expenses

203,793

178,264

14.3%

197,458

3.2%

401,251

356,994

12.4%

Income before income taxes

78,924

$     

61,036

$     

29.3%

69,499

$     

13.6%

148,423

$   

129,914

$   

14.2%

Ratios to net revenues:

Compensation and benefits

57.7%

58.8%

59.0%

58.4%

58.3%

Non-comp operating expenses

14.4%

15.7%

15.0%

14.6%

15.0%

Income before income taxes

27.9%

25.5%

26.0%

27.0%

26.7%

Three Months Ended

Six Months Ended

13

Stifel Bank & Trust

(an operating unit of GWM)

14

As of

6/30/13

6/30/12

% Change

3/31/13

% Change

Assets

$

4,306,447

$

3,052,867

41.1

$

3,872,677

11.2

Investment securities

2,956,073

1,844,875

60.2

2,440,146

21.1

Retained loans, net

983,788

709,079

38.7

886,597

11.0

Loans held for sale

152,246

117,166

29.9

165,698

(8.1)

Deposits

4,007,050

2,776,684

44.3

3,556,568

12.7

Allowance for loan losses

10,919

$              

5,781

$                 

88.9

9,406

$               

16.1

Allowance as a percentage of loans

1.10

%

0.88

%

1.01

%

Non-performing loans

1,042

$                 

1,872

$                 

(44.3)

1,063

$               

(2.0)

Other non-performing assets

173

634

(72.7)

373

(53.6)

Non-performing assets 

1,215

$                 

2,506

$                 

(51.5)

1,436

$               

(15.4)

Non-performing assets as a percentage of

total assets

0.03

%

0.08

%

0.04

%

As of

Institutional Group Revenues

($ in thousands)

6/30/13

6/30/12

% Change

3/31/13

% Change

6/30/13

6/30/12

% Change

Institutional brokerage:

Equity

66,788

$    

38,466

$    

73.6%

52,000

$    

28.4%

118,788

$  

82,638

$    

43.7%

Fixed income

40,939

37,050

10.5%

45,500

(9.9%)

86,439

83,013

4.1%

107,727

75,516

42.7%

97,500

10.5%

205,227

165,651

23.9%

Investment Banking:

Capital raising

Equity

44,640

17,651

152.9%

24,380

83.1%

69,020

49,201

40.3%

Fixed income

14,173

14,698

(3.6%)

15,715

(9.8%)

29,888

25,579

16.8%

58,813

32,349

81.8%

40,095

46.7%

98,908

74,780

32.3%

Advisory fees

47,967

26,630

80.1%

27,180

76.5%

75,147

42,235

77.9%

Investment banking

106,780

58,979

81.0%

67,275

58.7%

174,055

117,015

48.7%

Other

(1)

5,969

1,531

289.9%

11,662

(48.8%)

17,631

2,604

577.0%

Total net revenue

220,476

$  

136,026

$  

62.1%

176,437

$  

25.0%

396,913

$  

285,270

$  

39.1%

Three Months Ended

Six Months Ended

15

_________________________________________________________

(1)

Includes net interest and other income.

Institutional Group Revenues

($ in thousands)

6/30/13

6/30/12

% Change

3/31/13

% Change

6/30/13

6/30/12

% Change

Institutional brokerage:

Equity

66,788

$    

38,466

$    

73.6%

52,000

$    

28.4%

118,788

$  

82,638

$    

43.7%

Fixed income

40,939

37,050

10.5%

45,500

(9.9%)

86,439

83,013

4.1%

107,727

75,516

42.7%

97,500

10.5%

205,227

165,651

23.9%

Investment Banking:

Capital raising

Equity

44,640

17,651

152.9%

24,380

83.1%

69,020

49,201

40.3%

Fixed income

14,173

14,698

(3.6%)

15,715

(9.8%)

29,888

25,579

16.8%

58,813

32,349

81.8%

40,095

46.7%

98,908

74,780

32.3%

Advisory fees

47,967

26,630

80.1%

27,180

76.5%

75,147

42,235

77.9%

Investment banking

106,780

58,979

81.0%

67,275

58.7%

174,055

117,015

48.7%

Other

(1)

5,969

1,531

289.9%

11,662

(48.8%)

17,631

2,604

577.0%

Total net revenue

220,476

$  

136,026

$  

62.1%

176,437

$  

25.0%

396,913

$  

285,270

$  

39.1%

Three Months Ended

Six Months Ended

16

_________________________________________________________

*  Percentage not meaningful.

(1)

Includes net interest and other income.

17

Financial

Financial

Condition

Condition

Capital Structure

As of June 30, 2013

(in thousands, except ratios)

($ in thousands)

Total Assets

8,493,191

$  

Stockholders' Equity

1,897,990

$  

6.70% senior notes, due 2022

175,000

$     

5.375% senior notes, due 2022

150,000

Non-recourse debt, 6.75%, due 2016

53,024

Debentures to Stifel Financial Capital Trusts II, III, & IV

82,500

Total Capitalization

2,358,514

$  

Ratios:

Debt to Equity

13.6%

Leverage Ratio

3.6x

Equity Capitalization

4.5x

18

(1)

Debt

to

equity

ratio

includes

the

debentures

to

Stifel

Financial

Capital

Trusts

($82.5m),

non-recourse

debt

($55.9m),

and

Senior

Notes

($325.0m)

divided

by

stockholders’

equity.

(2)

Leverage ratio = total assets divided by total capitalization.

(3)

Equity capitalization = total assets divided by stockholders’equity.

_________________________________________________________

(1)

(2)

(3)

As of

6/30/13

6/30/12

% Change

3/31/13

% Change

Total assets (000s):

Stifel Nicolaus & Stifel Financial

4,186,744

$          

3,085,668

$       

35.7%

4,261,078

$       

(1.7%)

Stifel Bank

4,306,447

3,052,867

41.1%

3,872,677

11.2%

Total assets

8,493,191

$          

6,138,535

$       

38.4%

8,133,755

$       

4.4%

Total shareholders' equity (000s):

Stifel Nicolaus & Stifel Financial

1,613,003

$          

1,140,188

$       

41.5%

1,613,398

$       

(0.0%)

Stifel Bank

284,987

231,657

23.0%

290,268

(1.8%)

Total shareholders' equity

1,897,990

$          

1,371,845

$       

38.4%

1,903,666

$       

(0.3%)

Leverage ratio:

Stifel Nicolaus & Stifel Financial

2.0

2.2

(8.5%)

2.1

(1.6%)

Stifel Bank

15.1

13.2

14.6%

13.3

13.3%

Total leverage ratio

3.6

3.8

(4.5%)

3.4

4.8%

Financial advisors

(1)

2,069

2,028

2.0%

2,063

0.3%

Full-time associates

5,759

5,196

10.8%

5,680

1.4%

Locations

357

332

7.5%

357

0.0%

Total client assets (000s) 

(2)

150,628,000

$     

131,026,000

$  

15.0%

147,119,000

$  

2.4%

As of

19

Other Financial Data

(1)

Includes

145,

156

and

148

independent

contractors

as

of

June

30,

2013,

June

30,

2012

and

March

31,

2013.

(2)

Includes

money-market

and

FDIC-insured

balances.

Prior

period

amounts

have

been

adjusted

to

conform

to

the

current

period

presentation.

_________________________________________________________

Q&A

Q&A