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): February 24, 2014

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 February 24, 2014, Stifel Financial Corp. (“Stifel”) reported its financial results for the three and twelve months ended December 31, 2013. A copy of the related press release is attached hereto as Exhibit 99.1.

Stifel will hold a conference call on Monday, February 24, 2014, 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 (888) 676-3684 and referencing conference ID #22974566. 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 February 24, 2014.
99.2	Investor presentation.

2

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: February 24, 2014	By:	/s/ James M. Zemlyak
	Name:	James M. Zemlyak
	Title:	Senior Vice President and Chief Financial Officer

3

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
99.1	Press release dated February 24, 2014.
99.2	Investor presentation.

4

EX-99.1

Exhibit 99.1

STIFEL REPORTS FOURTH QUARTER AND FULL-YEAR 2013 FINANCIAL RESULTS

18^th Consecutive Year of Record Net Revenues

Record Revenues & Pre-Tax Operating Income in Both Global Wealth and Institutional Group for 2013

• Record net revenues of $562.5 million, increased 37% compared with the year-ago quarter.

• Net income from continuing operations of $52.1 million, or $0.69 per diluted common share.

• Non-GAAP net income from continuing operations of $59.8 million, or $0.79 per diluted share.

ST. LOUIS, February 24, 2014 – Stifel Financial Corp. (NYSE: SF) today reported net income from continuing operations of $52.1 million, or $0.69 per diluted common share on record net revenues of $562.5 million for the three months ended December 31, 2013, compared with net income from continuing operations of $43.3 million, or $0.69 per diluted common share, on net revenues of $411.3 million for the fourth quarter of 2012.

For the three months ended December 31, 2013, the Company reported non-GAAP net income from continuing operations of $59.8 million, or $0.79 per diluted common share. These non-GAAP results exclude merger-related expenses associated with the acquisitions of the Knight Capital Fixed Income business, KBW, and Miller Buckfire for a total of $7.7 million (after-tax). A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

Summary Results of Operations (Unaudited)
	Three Months Ended															Year Ended
(in 000s)	12/31/13			12/31/12			% Change			9/30/13			% Change			12/31/13			12/31/12			% Change
Net revenues	$	562,526		$	411,283			36.8		$	478,639			17.5		$	1,973,446		$	1,594,113			23.8
Net income from continuing operations	$	52,126		$	43,284			20.4		$	74,929			(30.4	)	$	172,907		$	145,296			19.0
Net income	$	48,269		$	39,954			20.8		$	69,690			(40.8	)	$	162,013		$	138,573			16.9
Non-GAAP net income from continuing operations1	$	59,819		$	43,284			38.2		$	39,649			50.9		$	184,658		$	145,296			27.1
Earnings per basic common share:
Income from continuing operations	$	0.82		$	0.80			2.5		$	1.16			(29.3	)	$	2.67		$	2.71			(1.5	)
Loss from discontinued operations		(0.06	)		(0.06	)		—			(0.08	)		(25.0	)		(0.17	)		(0.12	)		41.7
Earnings per basic common share	$	0.76		$	0.74			2.5		$	1.08			(29.6	)	$	2.50		$	2.59			3.5
Earnings per diluted common share:
Income from continuing operations	$	0.69		$	0.69			—		$	1.00			(31.0	)	$	2.35		$	2.31			1.7
Loss from discontinued operations		(0.05	)		(0.06	)		(16.7	)		(0.07	)		(28.6	)		(0.15	)		(0.11	)		36.4
Earnings per diluted common share	$	0.64		$	0.63			1.6		$	0.93			(31.2	)	$	2.20		$	2.20			—
Non-GAAP net income from continuing operations1	$	0.79		$	0.69			14.5		$	0.53			49.1		$	2.51		$	2.31			8.7
Weighted average number of common shares outstanding:
Basic		64,859			53,835			20.5			64,706			0.2			63,568			53,563			18.7
Diluted		75,495			63,301			19.3			75,191			0.4			73,504			62,937			16.8

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

1

Full-Year 2013 Results

• Record net revenues of $1.97 billion, increased 24% compared with the year-ago period.

• Net income from continuing operations of $172.9 million, or $2.35 per diluted common share.

• Non-GAAP net income of $184.7 million, or $2.51 per diluted common share.

For the year ended December 31, 2013, the Company reported net income from continuing operations of $172.9 million, or $2.35 per diluted common share on record net revenues of $1.97 billion, compared with net income from continuing operations of $145.3 million, or $2.31 per diluted common share, on net revenues of $1.59 billion in 2012. For the year ended December 31, 2013, the Company reported non-GAAP net income from continuing operations of $184.7 million, or $2.51 per diluted common share. A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

Chairman’s Comments

Ronald J. Kruszewski, Chairman, President and CEO of Stifel said, “We are very pleased to post our 18^th consecutive year of record net revenues. This speaks to the dedication of our over 5,800 professionals, as well as to our balanced business model. Non-GAAP net income from continuing operations for the year improved over the prior year as a result of both better market conditions and the benefits of our recent acquisitions.”

Kruszewski continued, “Looking forward, we will continue to take advantage of opportunities in the marketplace that add to shareholder value.”

Business Segment Results

Summary Segment Results (Unaudited)
	Three Months Ended														Year Ended
(in 000s)	12/31/13			12/31/12			% Change		9/30/13			% Change			12/31/13			12/31/12			% Change
Net revenues:
Global Wealth Management	$	292,836		$	253,775			15.4	$	274,669			6.6		$	1,117,179		$	991,597			12.7
Institutional Group		267,282			160,693			66.3		205,132			30.3			861,158			604,654			42.4
Other		2,408			(3,185	)		175.6		(1,162	)		(175.6	)		(4,891	)		(2,138	)		(128.7	)
	$	562,526		$	411,283			36.8	$	478,639			17.5		$	1,973,446		$	1,594,113			23.8
Operating contribution: 2
Global Wealth Management	$	79,022		$	68,737			15.0	$	72,128			9.6		$	299,572		$	266,669			12.3
Institutional Group		48,590			21,678			124.1		34,986			38.9			142,889			101,487			40.8
Other		(37,184	)		(30,064	)		23.7		(41,669	)		(10.8	)		(147,377	)		(138,409	)		6.5
	$	90,428		$	60,351			49.8	$	65,443			38.2		$	295,084		$	229,747			28.4
As a percentage of net revenues:
Compensation and benefits
Global Wealth Management		57.4			57.7					58.2						58.1			58.2
Institutional Group		62.0			65.4					58.4						60.9			62.9
Non-comp. operating expenses
Global Wealth Management		15.6			15.2					15.5						15.1			14.9
Institutional Group		19.8			21.1					24.5						22.5			20.3
Income before income taxes
Global Wealth Management		27.0			27.1					26.3						26.8			26.9
Institutional Group		18.2			13.5					17.1						16.6			16.8
Other		(6.5	)		(7.3	)				(8.7	)					(7.4	)		(8.7	)
		16.0			14.7					13.6						14.9			14.4

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

2

Fourth Quarter 2013

Global Wealth Management

For the quarter ended December 31, 2013, the Global Wealth Management segment generated record pre-tax operating income of $79.0 million, compared with $68.7 million in the fourth quarter of 2012 and $72.1 million in the third quarter of 2013. Net revenues for the quarter were a record $292.8 million, compared with $253.8 million in the fourth quarter of 2012, and $274.7 million in the third quarter of 2013. The increase in net revenues from the fourth quarter of 2012 is primarily attributable to (1) growth in asset management and service fees; (2) an increase in commission revenues; and (3) increased net interest revenues.

• The Private Client Group reported net revenues of $256.1 million, an 11% increase compared with the fourth quarter of 2012 and a 3% increase compared with the third quarter of 2013.

• Stifel Bank reported record net revenues of $36.7 million, an 63% increase compared with the fourth quarter of 2012 and a 40% increase compared with the third quarter of 2013.

Institutional Group

For the quarter ended December 31, 2013, the Institutional Group segment generated record pre-tax operating income of $48.6 million, compared with $21.7 million in the fourth quarter of 2012 and $35.0 million in the third quarter of 2013. Net revenues for the quarter were a record $267.3 million, compared with $160.7 million in the fourth quarter of 2012 and $205.1 million in the third quarter of 2013. The increase in net revenues from the fourth quarter of 2012 was primarily attributable to (1) an increase in advisory fees; (2) an increase in equity capital raising revenues; and (3) higher institutional brokerage revenues, offset by a reduction in other revenues as a result of gains recorded on the investment in Knight Capital during the fourth quarter of 2012. Net revenue growth, on a year-over-year basis, is attributable to the acquisitions of KBW and the Knight Capital Fixed Income business and, to a lesser extent, Miller Buckfire.

Institutional brokerage revenues were $111.3 million, a 35% increase compared with the fourth quarter of 2012 and a 1% increase compared with the third quarter of 2013.

• Equity brokerage revenues were $60.2 million, a 56% increase compared with the fourth quarter of 2012 and a 3% increase compared with the third quarter of 2013.

• Fixed income brokerage revenues were $51.1 million, a 17% increase compared with the fourth quarter of 2012 and a 1% decrease compared with the third quarter of 2013.

Investment banking revenues were a record $149.3 million, a 140% increase compared with the fourth quarter of 2012 and a 79% increase compared with the third quarter of 2013.

• Equity capital raising revenues were $46.6 million, a 175% increase compared with the fourth quarter of 2012 and a 52% increase compared with the third quarter of 2013.

• Fixed income capital raising revenues were $14.7 million, a 21% decrease compared with the fourth quarter of 2012 and a 9% increase compared with the third quarter of 2013.

• Advisory fee revenues were $88.0 million, a 231% increase compared with the fourth quarter of 2012 and a 125% increase compared with the third quarter of 2013.

Consolidated Compensation and Benefits Expenses

For the quarter ended December 31, 2013, compensation and benefits expenses were $353.2 million, which included merger-related expenses of $5.9 million, compared with $258.1 million in the fourth quarter of 2012 and $326.0 million in the third quarter of 2013, which included merger-related expenses of $28.6 million.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues was 61.5% in the fourth quarter of 2013, compared with 62.8% in the fourth quarter of 2012 and 62.0% in the third quarter of 2013. Transition pay, which primarily consists of amortization of retention awards, signing bonuses, and upfront notes, as a percentage of net revenues was 4.0% in the fourth quarter of 2013, compared with 5.0% in the fourth quarter of 2012 and 4.6% in the third quarter of 2013.

3

Consolidated Non-Compensation Operating Expenses

For the quarter ended December 31, 2013, non-compensation operating expenses were $131.3 million, which included $4.3 million of merger-related expenses, compared with $92.8 million in the fourth quarter of 2012 and $121.6 million in the third quarter of 2013, which included $4.8 million in merger-related expenses.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended December 31, 2013 was 22.5%, compared with 22.6% in the fourth quarter of 2012 and 24.4% in the third quarter of 2013.

Provision for Income Taxes

The effective income tax rate for the quarter ended December 31, 2013 was 33.9% compared with 28.3% in the fourth quarter of 2012.

Full-Year 2013

Global Wealth Management

For the year ended December 31, 2013, the Global Wealth Management segment generated record pre-tax operating income of $299.6 million, compared with $266.7 million in 2012. Net revenues for the year were a record $1.11 billion, compared with $991.6 million in 2012. The increase in net revenues from 2012 is primarily attributable to (1) an increase in commission revenues; (2) growth in asset management and service fees; and (3) increased net interest revenues.

• The Private Client Group reported record net revenues of $1.0 billion, a 10% increase compared to $911.7 million in 2012.

• Stifel Bank reported record net revenues of $112.1 million, a 40% increase compared to $79.9 million in 2012.

Institutional Group

For the year ended December 31, 2013, the Institutional Group segment generated record pre-tax operating income of $142.9 million, compared with $101.5 million in 2012. Net revenues for the year were a record $861.2 million, compared with $604.7 million in 2012. The increase in net revenues from 2012 was primarily attributable to (1) an increase in advisory fees; (2) an increase in equity capital raising revenues; and (3) higher equity institutional brokerage revenues, offset by a reduction in other revenues as a result of gains recorded on the investment in Knight Capital during 2012. Net revenue growth, on a year-over-year basis, is attributable to the acquisitions of KBW and the Knight Capital Fixed Income business and, to a lesser extent, Miller Buckfire.

Institutional brokerage revenues were $421.6 million, a 30% increase compared to $323.5 million in 2012.

• Equity brokerage revenues were $232.4 million, a 54% increase compared to $151.3 million in 2012.

• Fixed income brokerage revenues were $189.2 million, a 10% increase compared to $172.2 million in 2012.

Investment banking revenues were a record $402.7 million, a 70% increase compared to $236.4 million in 2012.

• Equity capital raising revenues were $142.6 million, a 74% increase compared to $81.8 million in 2012.

• Fixed income capital raising revenues were $58.1 million, a 2% decrease compared to $59.0 million in 2012.

• Advisory fee revenues were $201.9 million, a 111% increase compared with to $95.5 million in 2012.

4

Consolidated Compensation and Benefits Expenses

For the year ended December 31, 2013, compensation and benefits expenses were $1.3 billion, which included merger-related expenses of $74.4 million, compared to $1.0 billion in 2012.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues for the year ended December 31, 2013 was 62.5%, compared with 63.4% in 2012. Transition pay as a percentage of net revenues for the year ended December 31, 2013 was 4.4%, compared with 4.6% in 2012.

Consolidated Non-Compensation Operating Expenses

For the year ended December 31, 2013, non-compensation operating expenses were $476.8 million, which included $30.6 million of merger-related expenses, compared with $354.2 million in 2012.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the year ended December 31, 2013 was 22.6%, compared with 22.2% in 2012.

Provision for Income Taxes

The effective income tax rate for the year ended December 31, 2013 was 6.7% compared with 36.8% in the 2012. The effective rate in 2013 reflects a $58.2 million U.S. tax benefit arising out of its investment in SN Canada in connection with discontinuing the business operations during 2013.

Assets and Capital

Assets

• Assets increased 29% to $9.0 billion as of December 31, 2013 from $7.0 billion as of December 30, 2012. The increase is primarily attributable to growth of Stifel Bank, the Company’s bank subsidiary, which as of December 31, 2013 has grown its assets to $5.0 billion from $3.7 billion as of December 31, 2012.

• At December 31, 2013, the Company’s Level 3 assets of $232.0 million, or 3% of total assets, consisted of $125.7 million of auction rate securities and $106.2 million of private equity, municipal securities, and other fixed income securities. The Company’s Level 3 assets as a percentage of total assets measured at fair value was 8% at December 31, 2013.

• Non-performing assets as a percentage of total assets as of December 31, 2013 was 0.03%.

Capital

• The Company’s Tier 1 leverage capital ratio was 15.4% at December 31, 2013 and Tier 1 risk-based capital ratio was 26.7% at December 31, 2013.

• At December 31, 2013, book value per common share was $32.30 based on 63.7 million shares outstanding.

• Stockholders’ equity as of December 31, 2013 increased $564.2 million, or 38%, to $2.1 billion from $1.5 billion as of December 31, 2012.

5

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 twelve months ended December 31, 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 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 acquisitions of the Knight Capital Fixed Income business and KBW and certain compensation and non-compensation operating expenses associated with the acquisitions of KBW, Miller Buckfire, the Knight Capital Fixed Income business, and the U.S. tax benefit arising out of the Company’s investment in SN Canada.

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 twelve months ended December 31, 2013 to the aforementioned expenses on a non-GAAP basis for the same period.

	Three Months Ended December 31, 2013							Year Ended December 31, 2013
(in 000s, except per share amounts)	Non-GAAP		Non-Core			GAAP		Non-GAAP		Non-Core			GAAP
Net revenues	$	564,681	$	(2,155	)	$	562,526	$	1,978,340	$	(4,894	)	$	1,973,446
Non-interest expenses:
Compensation and benefits		347,263		5,944			353,207		1,236,991		74,395			1,311,386
Non-compensation operating expenses		126,990		4,340			131,330		446,265		30,566			476,831
Total non-interest expenses		474,253		10,284			484,537		1,683,256		104,961			1,788,217
Income from continuing operations before income taxes		90,428		(12,439	)		77,989		295,084		(109,855	)		185,229
Provision for income taxes		30,609		(4,746	)		25,863		110,426		(98,104	)		12,322
Net income from continuing operations	$	59,819	$	(7,693	)	$	48,269	$	184,658	$	(11,751	)	$	172,907
Earnings per common share:
Diluted	$	0.79	$	(0.10	)	$	0.69	$	2.51	$	(0.16	)	$	2.35
As a percentage of net revenues:
Compensation and benefits		61.5					62.8		62.5					66.5
Non-compensation operating expenses		22.5					23.3		22.6					24.1
Income before income taxes		16.0					13.9		14.9					9.4

6

Conference Call Information

Stifel Financial Corp. will host its fourth quarter and full-year 2013 financial results conference call on Monday, February 24, 2014, 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 (888) 676-3684 and referencing conference ID #22974566. 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’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Century Securities Associates, Inc. and through Stifel Nicolaus Europe Limited and Keefe, Bruyette & Woods Limited in the United Kingdom 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.

7

Summary Results of Operations (Unaudited)
	Three Months Ended															Year Ended
(in thousands, except per share amounts)	12/31/13			12/31/12			% Change			9/30/13			% Change			12/31/13			12/31/12			% Change
Revenues:
Commissions	$	152,451		$	131,327			16.1		$	145,837			4.5		$	598,949		$	501,434			19.4
Principal transactions		118,815			97,515			21.8			122,583			(3.1	)		459,968			408,935			12.5
Investment banking		158,860			72,938			117.8			92,851			71.1			448,060			281,280			59.3
Asset management and service fees		83,928			68,971			21.7			76,710			9.4			305,639			257,981			18.5
Other income		19,391			19,157			1.2			13,063			48.4			64,659			69,148			(6.5	)
Operating revenues		533,445			389,908			36.8			451,044			18.3			1,877,275			1,518,778			23.6
Interest revenue		40,711			29,977			35.8			39,130			4.0			142,539			108,705			31.1
Total revenues		574,156			419,885			36.7			490,174			17.1			2,019,814			1,627,483			24.1
Interest expense		11,630			8,602			35.2			11,535			0.8			46,368			33,370			39.0
Net revenues		562,526			411,283			36.8			478,639			17.5			1,973,446			1,594,113			23.8
Non-interest expenses:
Compensation and benefits		353,207			258,148			36.8			326,020			8.3			1,311,386			1,010,140			29.8
Occupancy and equipment rental		42,178			33,589			25.6			41,288			2.2			158,268			128,365			23.3
Communications and office supplies		25,692			19,291			33.2			26,122			(1.6	)		99,726			79,406			25.6
Commission and floor brokerage		8,448			7,271			16.2			10,150			(16.8	)		37,225			29,610			25.7
Other operating expenses		55,012			32,633			68.6			44,051			24.9			181,612			116,845			55.4
Total non-interest expenses		484,537			350,932			38.1			447,631			8.2			1,788,217			1,364,366			31.1
Income from continuing operations before income taxes		77,989			60,351			29.2			31,008			151.5			185,229			229,747			(17.2	)
Provision for income taxes		25,863			17,067			51.5			(43,921	)		(158.9	)		12,322			84,451			(19.4	)
Net income from continuing operations		52,126			43,284			20.4			74,929			(30.4	)		172,907			145,296			19.0
Discontinued operations:
Loss from discontinued operations, net of tax		(3,857	)		(3,330	)		15.8			(5,239	)		(26.4	)		(10,894	)		(6,723	)		62.1
Net income	$	48,269		$	39,954			20.8		$	69,690			(40.8	)	$	162,013		$	138,573			16.9
Earnings per basic common share:
Income from continuing operations	$	0.82		$	0.80			2.5		$	1.16			(29.3	)	$	2.67		$	2.71			(1.5	)
Loss from discontinued operations		(0.06	)		(0.06	)		—			(0.08	)		(25.0	)		(0.17	)		(0.12	)		41.7
Earnings per basic common share	$	0.76		$	0.74			2.5		$	1.08			(29.6	)	$	2.50		$	2.59			(3.5	)
Earnings per diluted common share:
Income from continuing operations	$	0.69		$	0.69			—		$	1.00			(31.0	)	$	2.35		$	2.31			1.7
Loss from discontinued operations		(0.05	)		(0.06	)		(16.7	)		(0.07	)		(28.6	)		(0.15	)		(0.11	)		36.4
Earnings per diluted common share	$	0.64		$	0.63			1.6		$	0.93			(31.2	)	$	2.20		$	2.20			—
Weighted average number of common shares outstanding:
Basic		64,859			53,835			20.5			64,706			0.2			63,568			53,563			18.7
Diluted		75,495			63,301			19.3			75,191			0.4			73,504			62,937			16.8

8

(in thousands, except per share, employee and location amounts)
	12/31/13		12/31/12		% Change		9/30/13		% Change
Statistical Information:
Book value per common share	$	32.30	$	27.24		18.7	$	31.46		2.7
Financial advisors 3		2,077		2,041		1.8		2,075		0.1
Full-time associates		5,862		5,343		9.7		5,780		1.4
Locations		357		340		5.0		355		0.6
Total client assets	$	165,570,000	$	137,855,000		20.1	$	153,901,000		7.6

³  Includes 143, 151 and 145 independent contractors at December 31, 2013 and 2012 and September 30, 2013, respectively.

9

Global Wealth Management Summary Results of Operations (Unaudited)
	Three Months Ended												Year Ended
(in 000s)	12/31/13		12/31/12		% Change			9/30/13		% Change			12/31/13		12/31/12		% Change
Revenues:
Commissions	$	104,149	$	93,043		11.9		$	99,427		4.7		$	410,238	$	361,871		13.4
Principal transactions		55,809		53,542		4.2			58,658		(4.9	)		227,087		225,007		0.9
Asset management and service fees		82,964		68,631		20.9			76,667		8.2			304,541		257,257		18.4
Net interest		31,092		21,182		46.8			27,665		12.4			104,748		79,328		32.0
Investment banking		9,568		10,818		(11.6	)		9,394		1.8			45,400		44,919		1.1
Other income		9,254		6,559		41.1			2,858		223.9			26,165		23,215		8.4
Net revenues		292,836		253,775		15.4			274,669		6.6			1,117,179		991,597		12.7
Non-interest expenses:
Compensation and benefits		167,980		146,311		14.8			159,949		5.0			648,681		576,744		12.5
Non-compensation operating expenses		45,834		38,727		18.3			42,592		7.6			168,926		148,184		14.0
Total non-interest expenses		213,814		185,038		15.6			202,541		5.6			817,607		724,928		12.8
Income before income taxes	$	79,022	$	68,737		15.0		$	72,128		9.6		$	299,572	$	266,669		12.3
As a percentage of net revenues:
Compensation and benefits		57.4		57.7					58.2					58.1		58.2
Non-compensation operating expenses		15.6		15.2					15.5					15.1		14.9
Income before income taxes		27.0		27.1					26.3					26.8		26.9

Stifel Bank & Trust (Unaudited)
Key Statistical Information
(in 000s, except percentages)	12/31/13			12/31/12			% Change			9/30/13			% Change
Other information:
Assets	$	5,027,023		$	3,650,235			37.7		$	4,547,071			10.6
Investment securities		3,062,549			2,327,316			31.6			2,949,080			3.8
Retained loans, net		1,412,136			822,711			71.6			1,061,313			33.1
Loans held for sale		109,110			214,531			(49.1	)		75,440			44.6
Deposits		4,661,444			3,346,133			39.3			4,228,405			10.2
Allowance as a percentage of loans		0.89	%		0.99	%					1.23	%
Non-performing assets as a percentage of total assets		0.03	%		0.06	%					0.32	%

10

Institutional Group Summary Results of Operations (Unaudited)
	Three Months Ended												Year Ended
(in 000s)	12/31/13		12/31/12		% Change			9/30/13		% Change			12/31/13		12/31/12		% Change
Revenues:
Commissions	$	48,302	$	38,284		26.2		$	46,410		4.1		$	188,712	$	139,564		35.2
Principal transactions		63,005		43,973		43.3			63,925		(1.4	)		232,880		183,927		26.6
Capital raising		61,311		35,502		72.7			44,270		38.5			200,732		140,842		42.5
Advisory fees		87,981		26,618		230.5			39,186		124.5			201,928		95,519		111.4
Investment banking		149,292		62,120		140.3			83,456		78.9			402,660		236,361		70.4
Other 4		6,683		16,316		(59.0	)		11,341		(41.1	)		36,906		44,802		(17.6	)
Net revenues		267,282		160,693		66.3			205,132		30.3			861,158		604,654		42.4
Non-interest expenses:
Compensation and benefits		165,779		105,025		57.8			119,874		38.3			524,870		380,185		38.1
Non-compensation operating expenses		52,913		33,990		55.7			50,272		5.3			193,399		122,982		57.3
Total non-interest expenses		218,692		139,015		57.3			170,146		28.5			718,269		503,167		42.7
Income before income taxes	$	48,590	$	21,678		124.1		$	34,986		38.9		$	142,889	$	101,487		40.8
As a percentage of net revenues:
Compensation and benefits		62.0		65.4					58.4					60.9		62.9
Non-compensation operating expenses		19.8		21.1					24.5					22.5		20.3
Income before income taxes		18.2		13.5					17.1					16.6		16.8

Institutional Group Brokerage & Investment Banking Revenues (Unaudited)
	Three Months Ended												Year Ended
(in 000s)	12/31/13		12/31/12		% Change			9/30/13		% Change			12/31/13		12/31/12		% Change
Institutional brokerage:
Equity	$	60,204	$	38,659		55.7		$	58,677		2.6		$	232,392	$	151,308		53.6
Fixed income		51,103		43,598		17.2			51,658		(1.1	)		189,200		172,183		9.9
Institutional brokerage		111,307		82,257		35.3			110,335		0.9			421,592		323,491		30.3
Investment banking:
Capital raising:
Equity		46,634		16,947		175.2			30,739		51.7			142,636		81,818		74.3
Fixed income		14,677		18,555		(20.9	)		13,531		8.5			58,096		59,024		(1.6	)
Capital raising		61,311		35,502		72.7			44,270		38.5			200,732		140,842		42.5
Advisory fees:		87,981		26,618		230.5			39,186		124.5			201,928		95,519		111.4
Investment banking	$	149,292	$	62,120		140.3		$	83,456		78.9		$	402,660	$	236,361		70.4

Investor Relations

Sarah Anderson

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

⁴  Includes net interest and other income.

11

EX-99.2

4

th

Quarter and Full-Year 2013

Financial Results Presentation

February 24, 2014

Exhibit 99.2

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.

Chairman’s Comments

“We

are

very

pleased

to

post

our

18th

consecutive

year

of

record

net

revenues.

This

speaks

to

the

dedication

of

our

over

5,800

professionals,

as

well

as

to

our

balanced

business

model.

Non-GAAP

net

income

from

continuing

operations

for

the

year

improved

over

the

prior

year

as

a

result

of

both

better

market

conditions

and

the

benefits

of

our

recent

acquisitions.

Looking

forward,

we

will

continue

to

take

advantage

of

opportunities

in

the

marketplace

that

add

to

shareholder

value.”

Market Overview

Domestic Equity Flows

Equity Risk Premium

(1)

(1)

Based on the Daily Treasury Yield Curve Rates I10 year)

Source: Investment Company Institute

2013: A Year in Review

Stifel’s 18

th

Consecutive Year of Record Net Revenues

•

Successfully completed the merger and integration with KBW.

•

Acquired and integrated the fixed income business of Knight Capital Group in July of 2013, adding to Stifel’s

already impressive fixed income capabilities.

•

The Institutional Group achieved record flow levels and record investment banking revenues.

Continued to

gain market share in the year and completed a number of unique and high profile financings for clients.

•

Assets at Stifel Bank reached $5.1 billion, while the risk profile remained conservative.

•

Welcomed Ziegler Lotsoff Capital Management to the firm’s asset management efforts.

•

Welcomed 138 new Financial Advisors to the Private Client Group and opened 11 new offices in 2013.

•

Strong stock performance, which ended the year at $47.92 up 49% from the start of the year. In the last

fifteen years SF is up over 1,340%.

Stifel’s Stock

Performance

Top Performing Stock

Cumulative Price Appreciation as of December 31, 2013

Financial

Results

Stifel Financial Corp. Results

Three months ended December 31, 2013

(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

and

discontinued

operations

of

SN

Canada.

(2)

Core

(non-GAAP)

results

for

the

three

months

ended

December

31,

2012

are

the

same

as

GAAP

results.

Results

for

the

three

months

ended

September

30,

2013

are

Core

(non-GAAP).

_________________________________________________________

($ in thousands, except per share amounts)

Non-GAAP

Non-Core

GAAP

12/31/12

% Change

9/30/13

% Change

Total revenues

576,236

$       

(2,080)

$          

574,156

$       

419,885

$       

37.2%

491,169

$    

17.3%

Interest expense

11,555

75

11,630

8,602

34.3%

11,535

0.2%

Net revenues

564,681

(2,155)

562,526

411,283

37.3%

479,634

$    

17.7%

Compensation and benefits

347,263

5,944

353,207

258,148

34.5%

297,374

16.8%

Non-comp operating expenses

126,990

4,340

131,330

92,784

36.9%

116,817

8.7%

Total non-interest expenses

474,253

10,284

484,537

350,932

35.1%

414,191

14.5%

Income from continuing operations before income taxes

90,428

(12,439)

77,989

60,351

49.8%

65,443

38.2%

Provision for income taxes

30,609

(4,746)

25,863

17,067

79.3%

25,795

18.7%

Net income from continuing operations

59,819

$         

(7,693)

$          

52,126

$         

43,284

$         

38.2%

39,648

$      

50.9%

Discontinued operations:

Loss from discontinued operations, net

-

(3,857)

(3,857)

(3,330)

nm

-

-

Net income

59,819

$         

(11,550)

$       

48,269

$         

39,954

$         

49.7%

39,648

$      

50.9%

Earnings per diluted common share:

Income from continuing operations

0.79

$              

(0.10)

$            

0.69

$              

0.80

$              

(1.3%)

0.53

$           

49.1%

Loss from discontinued operations

-

(0.05)

(0.05)

$            

(0.06)

-

Earnings per diluted common share

0.79

$              

(0.15)

$            

0.64

$              

0.74

$              

6.8%

0.53

$           

49.1%

Weighted average number of shares outstanding:

Diluted

75,495

75,495

63,301

19.3%

75,191

0.4%

Ratios to net revenues

:

Compensation and benefits

61.5%

62.8%

62.7%

62.0%

Non-comp operating expenses

22.5%

23.3%

22.6%

24.4%

Income from continuing operations before income taxes

16.0%

13.9%

14.7%

13.6%

Three Months Ended December 31, 2013

Three Months Ended

(1)

(2)

(2)

Stifel Financial Corp. Results

Year ended December 31, 2013

(1)

Non-core

adjustments

consist

of

charges

related

to

expensing

stock

awards

issued

as

retention

in

connection

with

the

acquisitions

of

KBW

and

the

Knight

Capital

Fixed

Income

business

and

other

merger-related

revenues

and

expenses

associated

with

our

acquisitions

of

KBW,

the

Knight

Capital

Fixed

Income

business,

Miller

Buckfire

and

a

U.S.

tax

benefit

in

connection

with

discontinuing

operations

of

SN

Canada.

(2)

Core

(non-GAAP)

results

for

the

year

ended

December

31,

2012

are

the

same

as

GAAP

results.

_________________________________________________________

($ in thousands, except per share amounts)

Non-GAAP

Non-Core

GAAP

12/31/12

% Change

Total revenues

2,024,538

$   

(4,724)

$          

2,019,814

$   

1,627,483

$   

24.4%

Interest expense

46,198

170

46,368

33,370

38.4%

Net revenues

1,978,340

(4,894)

1,973,446

1,594,113

24.1%

Compensation and benefits

1,236,991

74,395

1,311,386

1,010,140

22.5%

Non-comp operating expenses

446,265

30,566

476,831

354,226

26.0%

Total non-interest expenses

1,683,256

104,961

1,788,217

1,364,366

23.4%

Income from continuing operations before income taxes

295,084

(109,855)

185,229

229,747

28.4%

Provision for income taxes

110,426

(98,104)

12,322

84,451

30.8%

Net income from continuing operations

184,658

$       

(11,751)

$       

172,907

$       

145,296

$       

27.1%

Discontinued operations:

Loss from discontinued operations, net

-

(10,894)

(10,894)

(6,723)

(100.0%)

Net income

184,658

$       

(22,645)

$       

162,013

$       

138,573

$       

33.3%

Earnings per diluted common share:

Income from continuing operations

2.51

$              

(0.16)

$            

2.35

$              

2.31

$              

8.7%

Loss from discontinued operations, net

-

(0.15)

(0.15)

(0.11)

(100.0%)

Earnings per diluted common share

2.51

$              

(0.31)

$            

2.20

$              

2.20

$              

14.1%

Weighted average number of shares outstanding:

Diluted

73,504

73,504

62,937

16.8%

Ratios to net revenues

:

Compensation and benefits

62.5%

66.5%

63.4%

Non-comp operating expenses

22.6%

24.1%

22.2%

Income from continuing operations before income taxes

14.9%

9.4%

14.4%

Year Ended December 31, 2013

Year Ended

Source of Revenues

($ in thousands)

12/31/13

12/31/12

%

Change

9/30/13

%

Change

12/31/13

12/31/12

%

Change

Commissions

152,451

$   

131,327

$   

16.1%

145,837

$       

4.5%

598,949

$     

501,434

$     

19.4%

Principal transactions

118,815

97,515

21.8%

122,583

(3.1%)

459,968

408,935

12.5%

Brokerage revenues

271,266

228,842

18.5%

268,420

1.1%

1,058,917

910,369

16.3%

Capital raising

71,379

46,320

54.1%

53,665

33.0%

246,631

185,761

32.8%

Advisory

87,481

26,618

228.7%

39,186

123.2%

201,429

95,519

110.9%

Investment banking

158,860

72,938

117.8%

92,851

71.1%

448,060

281,280

59.3%

Asset mgt and service fees

83,928

68,971

21.7%

76,710

9.4%

305,639

257,981

18.5%

Other

19,391

19,157

1.2%

13,063

48.4%

64,659

69,148

(6.5%)

    Total operating revenues

533,445

389,908

36.8%

451,044

18.3%

1,877,275

1,518,778

23.6%

Interest revenue

40,711

29,977

35.8%

39,130

4.0%

142,539

108,705

31.1%

    Total revenues

574,156

419,885

36.7%

490,174

17.1%

2,019,814

1,627,483

24.1%

Interest expense

11,630

8,602

35.2%

11,535

0.8%

46,368

33,370

39.0%

    Net revenues

562,526

$   

411,283

$   

36.8%

478,639

$       

17.5%

1,973,446

$ 

1,594,113

$ 

23.8%

Three Months Ended

Year Ended

($ in thousands)

12/31/13

12/31/12

%

Change

9/30/13

%

Change

12/31/13

12/31/12

%

Change

Private client group

159,958

$     

146,585

$     

9.1%

158,085

$     

1.2%

637,325

$     

586,878

$     

8.6%

Equity brokerage

60,204

38,659

55.7%

58,677

2.6%

232,392

151,308

53.6%

Fixed income brokerage

51,103

43,598

17.2%

51,658

(1.1%)

189,200

172,183

9.9%

Institutional brokerage

111,307

82,257

35.3%

110,335

0.9%

421,592

323,491

30.3%

Total Brokerage Revenues

271,265

$     

228,842

$     

18.5%

268,420

$     

1.1%

1,058,917

$ 

910,369

$     

16.3%

Three Months Ended

Year Ended

Brokerage Revenues by Segment

($ in thousands)

12/31/13

(1)

12/31/12

% Change

9/30/13

% Change

12/31/13

(1)

12/31/12

9/30/13

Net revenues

564,681

$     

411,283

$     

37.3%

479,634

$     

17.7%

100.0%

100.0%

100.0%

Compensation and benefits

324,569

237,465

36.7%

275,503

17.8%

57.5%

57.7%

57.4%

Transitional pay   

(2)

22,694

20,683

9.7%

21,871

3.8%

4.0%

5.0%

4.6%

Total compensation and benefits

347,263

258,148

34.5%

297,374

16.8%

61.5%

62.8%

62.0%

Occupancy and equipment rental

40,892

33,589

21.7%

39,856

2.6%

7.2%

8.2%

8.3%

Communication and office supplies

24,974

19,291

29.5%

25,105

(0.5%)

4.4%

4.7%

5.2%

Commissions and floor brokerage

8,213

7,271

13.0%

9,775

(16.0%)

1.5%

1.8%

2.0%

Other operating expenses

52,911

32,633

62.1%

42,080

25.7%

9.3%

7.9%

8.7%

Total non-comp operating expenses

126,990

92,784

36.9%

116,816

8.7%

22.4%

22.6%

24.4%

Total non-interest expense

474,253

350,932

35.1%

414,190

14.5%

84.0%

85.3%

86.4%

Income from continuing operations before income taxes

90,428

60,351

49.8%

65,444

38.2%

16.0%

14.7%

13.6%

Provision for income taxes

30,609

17,067

79.3%

25,795

18.7%

5.4%

4.0%

5.4%

Non-GAAP net income from continuing operations

59,819

$       

43,284

$       

38.2%

39,649

$       

50.9%

10.6%

10.5%

8.3%

Non-core expenses (after-tax)

(7,693)

-

35,280

GAAP net income from continuing operations

52,126

$       

43,284

$       

74,929

$       

Three Months Ended

% of Net revenues

Core Non-Interest Expenses

Three months ended December 31, 2013

_________________________________________________________

(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

retention

awards,

signing

bonuses,

and

upfront

notes.

Core Non-Interest Expenses

Year ended December 31, 2013

_________________________________________________________

(1)

Excludes

non-core

adjustments

consisting

of

charges

related

to

expensing

stock

awards

issued

as

retention

in

connection

with

the

acquisitions

of

KBW

and

the

Knight

Capital

Fixed

Income

business

and

other

merger-related

revenues

and

expenses

associated

with

our

acquisitions

of

KBW,

the

Knight

Capital

Fixed

Income

business,

Miller

Buckfire

and

a

U.S.

tax

benefit

in

connection

with

discontinuing

operations

of

SN

Canada.

($ in thousands)

12/31/13

(1)

12/31/12

% Change

12/31/13

(1)

12/31/12

Net revenues

1,978,340

$  

1,594,113

$  

24.1%

100.0%

100.0%

Compensation and benefits

1,150,883

937,066

22.8%

58.2%

58.8%

Transitional pay

86,108

73,074

17.8%

4.4%

4.6%

Total compensation and benefits

1,236,991

1,010,140

22.5%

62.5%

63.4%

Occupancy and equipment rental

149,488

128,365

16.5%

7.6%

8.1%

Communication and office supplies

95,539

79,406

20.3%

4.8%

5.0%

Commissions and floor brokerage

35,812

29,610

20.9%

1.8%

1.9%

Other operating expenses

165,426

116,845

41.6%

8.4%

7.3%

Total non-comp operating expenses

446,265

354,226

26.0%

22.6%

22.2%

Total non-interest expense

1,683,256

1,364,366

23.4%

85.1%

85.6%

Income from continuing operations before income taxes

295,084

229,747

28.4%

14.9%

14.4%

Provision for income taxes

110,426

84,451

30.8%

5.6%

5.2%

Non-GAAP net income from continuing operations

184,658

$     

145,296

$     

27.1%

9.3%

9.1%

Non-core expenses (after-tax)

(11,751)

-

GAAP net income from continuing operations

172,907

$     

145,296

$     

Year Ended

% of Net revenues

Segment Comparison -

Core

(1)

Core

(non-GAAP)

results

for

the

three

and

twelve

months

ended

December

31,

2012

are

the

same

as

GAAP

results.

(2)

Contribution

margin

for

the

other

segment

is

divided

by

consolidated

net

revenues.

_________________________________________________________

($ in thousands)

12/31/13

12/31/12

(1)

%

Change

9/30/13

%

Change

12/31/13

12/31/12

(1)

%

Change

Net revenues:

Global Wealth Management

292,836

$  

253,775

$  

15.4%

274,669

$  

6.6%

1,117,179

$

991,597

$   

12.7%

Institutional Group

267,282

160,693

66.3%

205,132

30.3%

861,158

604,654

42.4%

Other

4,563

(3,185)

(243.3%)

(167)

nm

3

(2,138)

(100.1%)

564,681

$  

411,283

$  

37.3%

479,634

$  

17.7%

1,978,340

$

1,594,113

$

24.1%

Operating contribution:

Global Wealth Management

79,022

$    

68,737

$    

15.0%

72,128

$    

9.6%

299,572

$   

266,669

$   

12.3%

Institutional Group

48,590

21,678

124.1%

34,986

38.9%

142,889

101,487

40.8%

Other

(37,184)

(30,064)

23.7%

(41,671)

(10.8%)

(147,377)

(138,409)

6.5%

90,428

$    

60,351

$    

49.8%

65,443

$    

38.2%

295,084

$   

229,747

$   

28.4%

Operating contribution

(2)

Global Wealth Management

27.0

27.1

26.3

26.8

26.9

Institutional Group

18.2

13.5

17.1

16.6

16.8

Other

(6.6)

(7.3)

(8.7)

(7.4)

(8.7)

16.0

14.7

13.6

14.9

14.4

As a percentage of net revenues:

Three Months Ended

Year Ended

Global Wealth Management

($ in thousands)

12/31/13

12/31/12

% Change

9/30/13

% Change

12/31/13

12/31/12

% Change

Commissions

104,149

$   

93,043

$     

11.9%

99,427

$     

4.7%

410,238

$   

361,871

$   

13.4%

Principal transactions

55,809

53,542

4.2%

58,658

(4.9%)

227,087

225,007

0.9%

Asset management & service fees

82,964

68,631

20.9%

76,667

8.2%

304,541

257,257

18.4%

Net interest

31,092

21,182

46.8%

27,665

12.4%

104,748

79,328

32.0%

Investment banking

9,568

10,818

(11.6%)

9,394

1.8%

45,400

44,919

1.1%

Other income

9,254

6,559

41.1%

2,858

223.9%

25,165

23,215

8.4%

Net revenues

292,836

253,775

15.4%

274,669

6.6%

1,117,179

991,597

12.7%

Compensation and benefits

167,980

146,311

14.8%

159,949

5.0%

648,681

576,744

12.5%

Non-comp operating expenses

45,834

38,727

18.4%

42,592

7.6%

168,926

148,184

14.0%

Total non-interest expenses

213,814

185,038

15.6%

202,541

5.6%

817,607

724,928

12.8%

Income before income taxes

79,022

$     

68,737

$     

15.0%

72,128

$     

9.6%

299,572

$   

266,669

$   

12.3%

Ratios to net revenues

:

Compensation and benefits

57.4%

57.7%

58.2%

58.1%

58.2%

Non-comp operating expenses

15.6%

15.2%

15.5%

15.1%

14.9%

Income before income taxes

27.0%

27.1%

26.3%

26.8%

26.9%

Three Months Ended

Year Ended

Stifel Bank & Trust

(an operating unit of GWM)

As of

12/31/13

12/31/12

% Change

9/30/13

% Change

Assets

$

5,027,023

$

3,650,235

37.7

$

4,547,071

10.6

Investment securities

3,062,549

2,327,316

31.6

2,949,080

3.8

Retained loans, net

1,412,136

822,711

71.6

1,061,313

33.1

Loans held for sale

109,110

214,531

(49.1)

75,440

44.6

Deposits

4,663,323

3,346,133

39.4

4,228,405

10.3

Allowance for loan losses

12,668

$              

8,145

$                 

55.5

13,233

$             

(4.3)

Allowance as a percentage of loans

0.89

%

0.99

%

1.23

%

Non-performing loans

1,504

$                 

1,808

$                 

(16.8)

14,759

$             

(89.8)

Other non-performing assets

131

373

(64.9)

-

100.0

Non-performing assets 

1,635

$                 

2,181

$                 

(25.0)

14,759

$             

(88.9)

Non-performing assets as a percentage of

total assets

0.03

%

0.06

%

0.32

%

As of

Institutional Group

($ in thousands)

12/31/13

12/31/12

% Change

9/30/13

% Change

12/31/13

12/31/12

% Change

Net revenues

267,282

$   

160,693

$   

66.3%

205,132

$   

30.3%

861,158

$   

604,654

$   

42.4%

Compensation and benefits

165,779

105,025

57.8%

119,874

38.3%

524,870

380,185

38.1%

Non-comp operating expenses

52,913

33,990

55.7%

50,272

5.3%

193,399

122,982

57.3%

Total non-interest expenses

218,692

139,015

57.3%

170,146

28.5%

718,269

503,167

42.7%

Income before income taxes

48,590

$     

21,678

$     

124.1%

34,986

$     

38.9%

142,889

$   

101,487

$   

40.8%

Ratios to net revenues:

Compensation and benefits

62.0%

65.4%

58.4%

60.9%

62.9%

Non-comp operating expenses

19.8%

21.1%

24.5%

22.5%

20.3%

Income before income taxes

18.2%

13.5%

17.1%

16.6%

16.8%

Three Months Ended

Year Ended

Institutional Group Revenues

($ in thousands)

12/31/13

12/31/12

% Change

9/30/13

% Change

12/31/13

12/31/12

% Change

Institutional brokerage:

Equity

60,204

$    

38,659

$    

55.7%

58,677

$    

2.6%

232,392

$  

151,308

$  

53.6%

Fixed income

51,103

43,598

17.2%

51,658

(1.1%)

189,200

172,183

9.9%

111,307

82,257

35.3%

110,335

0.9%

421,592

323,491

30.3%

Investment Banking:

Capital raising

Equity

46,634

16,947

175.2%

30,739

51.7%

142,636

81,818

74.3%

Fixed income

14,677

18,555

(20.9%)

13,531

8.5%

58,096

59,024

(1.6%)

61,311

35,502

72.7%

44,270

38.5%

200,732

140,842

42.5%

Advisory fees

87,981

26,618

230.5%

39,186

124.5%

201,928

95,519

111.4%

Investment banking

149,292

62,120

140.3%

83,456

78.9%

402,660

236,361

70.4%

Other

(1)

6,683

16,316

(59.0%)

11,341

(41.1%)

36,906

44,802

(17.6%)

Total net revenue

267,282

$  

160,693

$  

66.3%

205,132

$  

30.3%

861,158

$  

604,654

$  

42.4%

Three Months Ended

Year Ended

_________________________________________________________

(1)

Includes

net

interest

and

other

income.

($ in thousands)

12/31/13

12/31/12

12/31/11

12/31/10

12/31/09

Investment banking

448,060

281,280

199,584

218,104

125,807

Year Ended

Historical Investment Banking Revenues

Note: Reflects total investment banking historical revenues. 

_________________________________________________________

Financial

Condition

Capital Structure

As of December 31, 2013

(in thousands, except ratios)

_________________________________________________________

(1)

Debt to equity ratio includes the debentures to Stifel Financial Capital Trusts ($82.5m), and Senior Notes ($325.0m) divided by

stockholders’equity.

($ in thousands)

Total Assets

9,016,987

$ 

Stockholders' Equity

2,058,849

$ 

6.70% senior notes, due 2022

175,000

$    

5.375% senior notes, due 2022

150,000

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

82,500

Total Capitalization

2,466,349

$ 

Ratios:

Debt to Equity

(1)

12.5%

Tier 1 Leverage Ratio

15.4%

Tier 1 Risk-Based Capital Ratio

26.7%

Other Financial Data

_________________________________________________________

(1)    Includes 143, 151 and 145 independent contractors as of December 31, 2013, December 31, 2012 and September 30, 2013, respectively.

(2)    Includes money-market and FDIC-insured balances. Prior period amounts have been adjusted to conform to the current period presentation.

As of

12/31/13

12/31/12

% Change

9/30/13

% Change

Total assets (000s):

Stifel Nicolaus & Stifel Financial

3,986,845

$         

3,313,507

$      

20.3%

4,162,388

$      

(4.2%)

Stifel Bank

5,030,142

3,652,633

37.7%

4,547,071

10.6%

Total assets

9,016,987

$         

6,966,140

$      

29.4%

8,709,459

$      

3.5%

Total stockholders' equity (000s):

Stifel Nicolaus & Stifel Financial

1,736,272

$         

1,226,824

$      

41.5%

1,701,158

$      

2.1%

Stifel Bank

322,577

267,837

20.4%

293,331

10.0%

Total stockholders' equity

2,058,849

$         

1,494,661

$      

37.7%

1,994,489

$      

3.2%

Leverage ratio:

Stifel Nicolaus & Stifel Financial

1.9

2.2

(16.7%)

1.9

(4.4%)

Stifel Bank

15.6

13.6

14.2%

15.5

0.6%

Total leverage ratio

3.7

4.0

(8.0%)

3.6

2.2%

Book value per common share

32.30

$                  

27.24

$              

18.6%

31.46

$              

2.7%

Financial

advisors

(1)

2,077

2,041

1.8%

2,075

0.1%

Full-time associates

5,862

5,343

9.7%

5,780

1.4%

Locations

357

340

5.0%

355

0.6%

Total

client

assets

(000s)

(2)

165,570,000

$    

137,855,000

$ 

20.1%

153,901,000

$ 

7.6%

As of

Recent Merger

Updates

Recent Merger Updates

Announced the acquisition of De La Rosa on January 30, 2014 and is

expected to close in the first quarter. Plan to integrate under Stifel brand

immediately.

Investment bank and bond underwriter with a 25-year operating history.

Stifel will become #1 underwriter in  California negotiated underwriting in

par value and number of issues.

Stifel will become #1 underwriter in California in the following

categories: 

•

K-12

•

COP & Lease Revenue Bonds

•

Tax Increment

•

Economical Development

•

Water & Sewer.

Substantially all  of the senior leadership has executed continuation

agreements with Stifel.

Q&A