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 6, 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 August 6, 2014, Stifel Financial Corp. (“Stifel”) reported its financial results for the three months ended June 30, 2014. A copy of the related press release is attached hereto as Exhibit 99.1.

Stifel will hold a conference call on Wednesday, August 6, 2014, at 8:30 a.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 #80900810. 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 6, 2014.
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 6, 2014	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 6, 2014.
99.2	Investor presentation.

4

EX-99.1

Exhibit 99.1

STIFEL REPORTS SECOND QUARTER 2014 FINANCIAL RESULTS

Highlights for the three months ended June 30, 2014:

• Net revenues of $560.1 million, increased 14% compared with the year-ago quarter.

• Non-GAAP net income from continuing operations of $51.3 million, or $0.68 per diluted common share.

• Net income from continuing operations of $45.6 million, or $0.60 per diluted common share.

Highlights for the six months ended June 30, 2014:

• Record net revenues of $1.1 billion, increased 19% compared with the year-ago period.

• Non-GAAP net income from continuing operations of $103.3 million, or $1.37 per diluted share.

• Net income from continuing operations of $93.6 million, or $1.24 per diluted share.

ST. LOUIS, August 6, 2014 – Stifel Financial Corp. (NYSE: SF) today reported net income from continuing operations of $45.6 million, or $0.60 per diluted common share on net revenues of $560.1 million for the three months ended June 30, 2014, compared with net income from continuing operations of $30.9 million, or $0.42 per diluted common share, on net revenues of $493.7 million for the second quarter of 2013.

For the three months ended June 30, 2014, the Company reported non-GAAP net income from continuing operations of $51.3 million, or $0.68 per diluted common share. These non-GAAP results exclude merger-related expenses associated with the Company’s recent acquisitions for a total of $5.7 million (after-tax).

For the six months ended June 30, 2014, the Company reported net income from continuing operations of $93.6 million, or $1.24 per diluted common share on record net revenues of $1.1 billion, compared with net income from continuing operations of $45.9 million, or $0.64 per diluted share, on net revenues of $932.3 million for the comparable period in 2013. For the six months ended June 30, 2014, the Company reported non-GAAP net income from continuing operations of $103.3 million, or $1.37 per diluted share. A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

	Three Months Ended														Six Months Ended
(in 000s)	6/30/14			6/30/13			% Change		3/31/14			% Change			6/30/14			6/30/13			% Change
Net revenues	$	560,147		$	493,678			13.5	$	546,746			2.5		$	1,106,893		$	932,282			18.7
Net income from continuing operations	$	45,577		$	30,916			47.4	$	47,973			(5.0	)	$	93,550		$	45,852			104.0
Net income	$	43,601		$	29,435			48.1	$	47,382			(8.0	)	$	90,983		$	44,054			106.5
Non-GAAP net income from continuing operations1	$	51,266		$	45,133			13.6	$	52,028			(1.5	)	$	103,294		$	85,191			21.3
Earnings per basic common share:
Income from continuing operations	$	0.69		$	0.48			43.8	$	0.73			(5.5	)	$	1.42		$	0.74			91.9
Loss from discontinued operations		(0.03	)		(0.02	)		50.0		(0.01	)		200.0			(0.04	)		(0.03	)		33.3
Earnings per basic common share	$	0.66		$	0.46			43.5	$	0.72			(8.3	)	$	1.38		$	0.71			94.4
Earnings per diluted common share:
Income from continuing operations	$	0.60		$	0.42			42.9	$	0.63			(4.8	)	$	1.24		$	0.64			93.8
Loss from discontinued operations		(0.02	)		(0.02	)		—		—			nm			(0.04	)		(0.02	)		100.0
Earnings per diluted common share	$	0.58		$	0.40			45.0	$	0.63			(7.9	)	$	1.20		$	0.62			93.5
Non-GAAP net income from continuing operations1	$	0.68		$	0.61			11.5	$	0.69			(1.4	)	$	1.37		$	1.19			15.1
Weighted average number of common shares outstanding:
Basic		66,302			64,505			2.8		66,037			0.4			66,167			62,292			6.1
Diluted		75,641			74,090			2.1		75,691			(0.1	)		75,665			71,627			5.6

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

Chairman’s Comments

“We are pleased with the performance of our private client and investment banking groups, which contributed nicely to our results in a challenging market environment. Our global wealth management segment posted record net revenues and record pre-tax operating contributions in the quarter. Investment banking benefitted from strong equity capital raising and advisory activity. Our institutional brokerage results are reflective of lower industry volumes,” stated Ronald J. Kruszewski, Chairman and CEO of Stifel.

“During the second quarter, we announced two acquisitions. Oriel Securities, a London-based stockbroking and investment banking firm, will build out our institutional businesses already underway in London. And, in June, we announced the acquisition of Legg Mason Investment Counsel, which will be complementary to our high net worth private client group.”

Brokerage Revenues

Brokerage revenues, defined as commissions and principal transactions revenues, were $278.4 million, a 5% increase compared with the second quarter of 2013 and a 3% decrease compared with the first quarter of 2014.

• Global wealth management brokerage revenues were $161.8 million, a 1% increase compared with the second quarter of 2013 and flat compared with the first quarter of 2014.

• Institutional equity brokerage revenues were $62.1 million, a 3% decrease compared with the second quarter of 2013 and a 6% decrease compared with the first quarter of 2014.

• Institutional fixed income brokerage revenues were $54.5 million, a 33% increase compared with the second quarter of 2013 and a 7% decrease compared with the first quarter of 2014.

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Investment Banking Revenues

Investment banking revenues were $141.5 million, a 19% increase compared with the second quarter of 2013 and a 7% increase compared with the first quarter of 2014.

• Equity capital raising revenues were $65.8 million, a 23% increase compared with the second quarter of 2013 and an 8% increase compared with the first quarter of 2014.

• Fixed income capital raising revenues were $15.4 million, a 13% decrease compared with the second quarter of 2013 and an 18% increase compared with the first quarter of 2014.

• Advisory fee revenues were $60.4 million, a 25% increase compared with the second quarter of 2013 and a 3% increase compared with the first quarter of 2014.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were $94.2 million, a 24% increase compared with the second quarter of 2013 and a 6% increase compared with the first quarter of 2014. The increase is due to the higher value of fee-based accounts, as a result of market appreciation and new client assets.

Compensation and Benefits Expenses

For the quarter ended June 30, 2014, compensation and benefits expenses were $355.3 million, which included $1.5 million of merger-related expenses, compared with $317.2 million in the second quarter of 2013, and $346.8 million in the first quarter of 2014. Compensation and benefits expense included merger-related expenses of $6.0 million in the second quarter of 2013 and $2.3 million in the first quarter of 2014.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues was 63.0% in the second quarter of 2014, compared with 62.8% in the second quarter of 2013 and 62.8% in the first quarter of 2014. Transition pay, which primarily consists of amortization of retention awards, signing bonuses, and upfront notes, as a percentage of net revenues was 4.5% in the second quarter of 2014, compared with 4.2% in the second quarter of 2013 and 4.3% in the first quarter of 2014.

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Non-Compensation Operating Expenses

For the quarter ended June 30, 2014, non-compensation operating expenses were $127.4 million, which included merger-related expenses of $4.5 million, compared with $123.9 million in the second quarter of 2013, and $121.8 million in the first quarter of 2014. Non-compensation operating expenses included merger-related expenses of $14.9 million in the second quarter of 2013 and $2.5 million in the first quarter of 2014.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended June 30, 2014 was 21.9%, compared with 22.0% in the second quarter of 2013 and 21.8% in the first quarter of 2014.

Provision for Income Taxes

The effective income tax rate for the quarter ended June 30, 2014 was 41.2% compared with 41.2% in the second quarter of 2013, and 38.6% in the first quarter of 2014.

Assets and Capital

Assets

• Assets increased 13% to $9.6 billion as of June 30, 2014 from $8.5 billion as of June 30, 2013. The increase is primarily attributable to growth of Stifel Bank, the Company’s bank subsidiary, which as of June 30, 2014 has grown its assets to $5.1 billion from $4.3 billion as of June 30, 2013.

• At June 30, 2014, the Company’s Level 3 assets of $196.2 million, or 2.0% of total assets, consisted of $112.5 million of auction rate securities and $83.7 million of partnership interests, private company investments, private equity, and fixed income securities. The Company’s Level 3 assets as a percentage of total assets measured at fair value was 6.6% at June 30, 2014.

• Non-performing assets as a percentage of total assets as of June 30, 2014 was 0.10%.

Capital

• The Company’s Tier 1 leverage capital ratio was 15.4% at June 30, 2014 and Tier 1 risk-based capital ratio was 25.5% at June 30, 2014.

• At June 30, 2014, book value per common share was $33.18 based on 65.5 million common shares outstanding.

• Stockholders’ equity as of June 30, 2014 increased $275.2 million, or 13%, to $2.2 billion from $1.9 billion as of June 30, 2013.

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Conference Call Information

Stifel Financial Corp. will host its second quarter 2014 financial results conference call on Wednesday, August 6, 2014, at 8:30 a.m. Eastern time. The conference call may include forward-looking statements.

All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (888) 676-3684 and referencing conference ID #80900810. 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 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.

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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)	6/30/14			6/30/13			% Change			3/31/14			% Change			6/30/14			6/30/13			% Change
Revenues:
Commissions	$	152,712		$	154,795			(1.3	)	$	159,416			(4.2	)	$	312,128		$	300,662			3.8
Principal transactions		125,676			111,306			12.9			126,461			(0.6	)		252,137			218,570			15.4
Investment banking		141,515			119,443			18.5			132,304			7.0			273,819			196,348			39.5
Asset management and service fees		94,231			76,088			23.8			89,170			5.7			183,401			145,000			26.5
Other income		8,742			11,787			(25.8	)		5,200			68.1			13,942			32,206			(56.7	)
Operating revenues		522,876			473,419			10.4			512,551			2.0			1,035,427			892,786			16.0
Interest revenue		46,113			32,893			40.2			42,826			7.7			88,939			62,699			41.9
Total revenues		568,989			506,312			12.4			555,377			2.5			1,124,366			955,485			17.7
Interest expense		8,842			12,634			(30.0	)		8,631			2.4			17,473			23,203			(24.7	)
Net revenues		560,147			493,678			13.5			546,746			2.5			1,106,893			932,282			18.7
Non-interest expenses:
Compensation and benefits		355,267			317,247			12.0			346,771			2.4			702,038			632,159			11.1
Occupancy and equipment rental		42,967			41,282			4.1			40,532			6.0			83,499			74,801			11.6
Communications and office supplies		25,869			25,456			1.6			24,818			4.2			50,687			47,913			5.8
Commission and floor brokerage		9,248			9,790			(5.5	)		9,028			2.4			18,276			18,627			(1.9	)
Other operating expenses		49,273			47,328			4.1			47,469			3.8			96,742			82,549			17.2
Total non-interest expenses		482,624			441,103			9.4			468,618			3.0			951,242			856,049			11.1
Income from continuing operations before income taxes		77,523			52,575			47.5			78,128			(0.8	)		155,651			76,233			104.2
Provision for income taxes		31,946			21,659			47.5			30,155			5.9			62,101			30,381			104.4
Net income from continuing operations		45,577			30,916			47.4			47,973			(5.0	)		93,550			45,852			104.0
Discontinued operations:
Loss from discontinued operations, net of tax		(1,976	)		(1,481	)		33.4			(591	)		234.2			(2,567	)		(1,798	)		42.7
Net income	$	43,601		$	29,435			48.1		$	47,382			(8.0	)	$	90,983		$	44,054			106.5
Earnings per basic common share:
Income from continuing operations	$	0.69		$	0.48			43.8		$	0.73			(5.5	)	$	1.42		$	0.74			91.9
Loss from discontinued operations		(0.03	)		(0.02	)		50.0			(0.01	)		200.0			(0.04	)		(0.03	)		33.3
Earnings per basic common share	$	0.66		$	0.46			43.5		$	0.72			(8.3	)	$	1.38		$	0.71			94.4
Earnings per diluted common share:
Income from continuing operations	$	0.60		$	0.42			42.9		$	0.63			(4.8	)	$	1.24		$	0.64			93.8
Loss from discontinued operations		(0.02	)		(0.02	)		—			—			*			(0.04	)		(0.02	)		100.0
Earnings per diluted common share	$	0.58		$	0.40			45.0		$	0.63			(7.9	)	$	1.20		$	0.62			93.5
Weighted average number of common shares outstanding:
Basic		66,302			64,505			2.8			66,037			0.4			66,167			62,292			6.1
Diluted		75,641			74,090			2.1			75,691			(0.1	)		75,665			71,627			5.6

* Percentage not meaningful.

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Statistical Information

(in thousands, except per share, employee and location amounts)
	6/30/14		6/30/13		% Change		3/31/14		% Change
Statistical Information:
Book value per share	$	33.18	$	30.05		10.4	$	32.09		3.4
Financial advisors 2		2,085		2,069		0.8		2,081		0.2
Full-time associates		5,881		5,759		2.1		5,831		0.9
Locations		361		357		1.1		359		0.6
Total client assets	$	173,383,000	$	150,628,000		15.1	$	168,899,000		2.7

Business Segment Results

Summary Segment Results (Unaudited)
	Three Months Ended															Six Months Ended
(in 000s)	6/30/14			6/30/13			% Change			3/31/14			% Change			6/30/14			6/30/13			% Change
Net revenues:
Global Wealth Management	$	307,247		$	282,717			8.7		$	297,183			3.4		$	604,430		$	549,674			10.0
Institutional Group		255,712			215,444			18.7			249,977			2.3			505,689			388,744			30.1
Other		(2,812	)		(4,483	)		37.3			(414	)		(578.9	)		(3,226	)		(6,136	)		47.4
	$	560,147		$	493,678			13.5		$	546,746			2.5		$	1,106,893		$	932,282			18.7
Operating contribution: 3
Global Wealth Management	$	89,098		$	78,924			12.9		$	79,676			11.8		$	168,774		$	148,423			13.7
Institutional Group		42,690			31,083			37.3			45,622			(6.4	)		88,312			59,313			48.9
Other		(46,858	)		(34,785	)		(34.7	)		(40,726	)		(15.1	)		(87,584	)		(68,523	)		(27.8	)
	$	84,930		$	75,222			12.9		$	84,572			0.4		$	169,502		$	139,213			21.8
As a percentage of net revenues:
Compensation and benefits
Global Wealth Management		55.9			57.7						58.6						57.2			58.4
Institutional Group		61.6			61.5						61.6						61.6			61.5
Non-comp. operating expenses
Global Wealth Management		15.1			14.4						14.6						14.9			14.6
Institutional Group		21.7			24.1						20.1						20.9			23.2
Income before income taxes
Global Wealth Management		29.0			27.9						26.8						27.9			27.0
Institutional Group		16.7			14.4						18.3						17.5			15.3
		15.1			15.2						15.4						15.3			14.9

²  Includes 140, 145 and 141 independent contractors at June 30, 2014, June 30, 2013, and March 31, 2014, respectively.

³  A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed under “Non-GAAP Financial Measures.”

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Global Wealth Management Summary Results of Operations (Unaudited)

	Three Months Ended												Six Months Ended
(in 000s)	6/30/14		6/30/13		% Change			3/31/14		% Change			6/30/14		6/30/13		% Change
Revenues:
Commissions	$	107,438	$	104,576		2.7		$	107,739		(0.3	)	$	215,177	$	206,662		4.1
Principal transactions		54,342		56,313		(3.5	)		53,766		1.1			108,108		112,620		(4.0	)
Asset management and service fees		94,187		75,976		24.0			89,130		5.7			183,317		144,910		26.5
Net interest		35,839		24,505		46.2			35,262		1.6			71,101		45,991		54.6
Investment banking		9,892		15,334		(35.5	)		9,926		(0.3	)		19,818		26,437		(25.0	)
Other income		5,549		6,013		(7.7	)		1,360		307.9			6,909		13,054		(47.1	)
Net revenues		307,247		282,717		8.7			297,183		3.4			604,430		549,674		10.0
Non-interest expenses:
Compensation and benefits		171,724		163,156		5.3			174,168		(1.4	)		345,892		320,752		7.8
Non-compensation operating expenses		46,425		40,637		14.2			43,339		7.1			89,764		80,499		11.5
Total non-interest expenses		218,149		203,793		7.0			217,507		0.3			435,656		401,251		8.6
Income before income taxes	$	89,098	$	78,924		12.9		$	79,676		11.8		$	168,774	$	148,423		13.7
As a percentage of net revenues:
Compensation and benefits		55.9		57.7					58.6					57.2		58.4
Non-compensation operating expenses		15.1		14.4					14.6					14.9		14.6
Income before income taxes		29.0		27.9					26.8					27.9		27.0

Stifel Bank & Trust (Unaudited)

Key Statistical Information
(in 000s, except percentages)	6/30/14			6/30/13			% Change			3/31/14			% Change
Other information:
Assets	$	5,050,036		$	4,306,447			17.3		$	4,994,215			1.1
Investment securities		2,915,235			2,956,073			(1.4	)		3,083,902			(5.5	)
Retained loans, net		1,773,853			984,765			80.1			1,514,465			17.1
Loans held for sale		119,477			152,246			(21.5	)		102,367			16.7
Deposits		4,653,656			4,007,050			16.1			4,605,260			1.1
Allowance as a percentage of loans		0.97	%		1.10	%					0.94	%
Non-performing assets as a percentage of total assets		0.10	%		0.03	%					0.03	%

9

Institutional Group Summary Results of Operations (Unaudited)

	Three Months Ended												Six Months Ended
(in 000s)	6/30/14		6/30/13		% Change			3/31/14		% Change			6/30/14		6/30/13		% Change
Revenues:
Commissions	$	45,274	$	50,219		(9.8	)	$	51,677		(12.4	)	$	96,951	$	94,000		3.1
Principal transactions		71,333		54,993		29.7			72,695		(1.9	)		144,028		105,950		35.9
Capital raising		71,268		55,969		27.3			63,878		11.6			134,873		94,715		42.4
Advisory fees		60,356		48,140		25.4			58,500		3.2			119,129		75,196		58.4
Investment banking		131,624		104,109		26.4			122,378		7.6			254,002		169,911		49.5
Other 4		7,481		6,123		22.2			3,227		131.8			10,708		18,883		(43.3	)
Net revenues		255,712		215,444		18.7			249,977		2.3			505,689		388,744		30.1
Non-interest expenses:
Compensation and benefits		157,499		132,397		19.0			154,016		2.3			311,515		239,218		30.2
Non-compensation operating expenses		55,523		51,964		6.8			50,339		10.3			105,862		90,213		17.3
Total non-interest expenses		213,022		184,361		15.5			204,355		4.2			417,377		329,431		26.7
Income before income taxes	$	42,690	$	31,083		37.3		$	45,622		(6.4	)	$	88,312	$	59,313		48.9
As a percentage of net revenues:
Compensation and benefits		61.6		61.5					61.6					61.6		61.5
Non-compensation operating expenses		21.7		24.1					20.1					20.9		23.2
Income before income taxes		16.7		14.4					18.3					17.5		15.3

Institutional Group Brokerage & Investment Banking Revenues (Unaudited)

	Three Months Ended												Six Months Ended
(in 000s)	6/30/14		6/30/13		% Change			3/31/14		% Change			6/30/14		6/30/13		% Change
Institutional brokerage:
Equity	$	62,087	$	64,273		(3.4	)	$	65,768		(5.6	)	$	127,855	$	113,511		12.6
Fixed income		54,520		40,939		33.2			58,604		(7.0	)		113,124		86,439		30.9
Institutional brokerage		116,607		105,212		10.8			124,372		(6.2	)		240,979		199,950		20.5
Investment banking:
Capital raising:
Equity		51,903		41,891		23.9			44,476		16.7			96,291		64,822		48.5
Fixed income		19,365		14,078		37.6			19,402		(0.2	)		38,582		29,893		29.1
Capital raising		71,268		55,969		27.3			63,878		11.6			134,873		94,715		42.4
Advisory fees:		60,356		48,140		25.4			58,500		3.2			119,129		75,196		58.4
Investment banking	$	131,624	$	104,109		26.4		$	122,378		7.6		$	254,002	$	169,911		49.5

⁴  Includes net interest and other income.

10

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, 2014. 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 certain compensation and non-compensation operating expenses associated with the recent acquisitions.

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, 2014 to the aforementioned expenses on a non-GAAP basis for the same period.

	Three Months Ended June 30, 2014							Six Months Ended June 30, 2014
(in 000s, except per share amounts)	Non-GAAP		Non-Core			GAAP		Non-GAAP		Non-Core			GAAP
Net revenues	$	561,495	$	(1,348	)	$	560,147	$	1,109,930	$	(3,037	)	$	1,106,893
Non-interest expenses:
Compensation and benefits		353,754		1,513			355,267		698,241		3,797			702,038
Non-compensation operating expenses		122,811		4,546			127,357		242,187		7,017			249,204
Total non-interest expenses		476,565		6,059			482,624		940,428		10,814			951,242
Income from continuing operations before income taxes		84,930		(7,407	)		77,523		169,502		(13,851	)		155,651
Provision for income taxes		33,664		(1,718	)		31,946		66,208		(4,107	)		62,101
Net income from continuing operations	$	51,266	$	(5,689	)	$	45,577	$	103,294	$	(9,744	)	$	93,550
Earnings per share::
Basic	$	0.77	$	(0.08	)	$	0.69	$	1.56	$	(0.14	)	$	1.42
Diluted	$	0.68	$	(0.08	)	$	0.60	$	1.37	$	(0.13	)	$	1.24
As a percentage of net revenues:
Compensation and benefits		63.0					63.4		62.9					63.4
Non-compensation operating expenses		21.9					22.8		21.8					22.5
Income before income taxes		15.1					13.8		15.3					14.1

Investor Relations

Sarah Anderson

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

11

EX-99.2

2

nd

Quarter 2014

Financial Results Presentation

August 6, 2014

Exhibit 99.2

1

Disclaimer

Forward-Looking Statements

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, 2014. 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.

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.

2

Chairman’s Comments

“We are pleased with the performance of our private client and investment

banking groups, which contributed nicely to our results in a challenging

market environment. Our global wealth management segment posted

record net revenues and record pre-tax operating contributions in the

quarter.

Investment

banking

benefitted

from

strong

equity

capital

raising

and

advisory activity. Our institutional brokerage results are reflective of lower

industry volumes.

During the second quarter, we announced two acquisitions. Oriel Securities,

a London-based stockbroking and investment banking firm, will build out our

institutional businesses already underway in London. And, in June, we

announced the acquisition of Legg Mason Investment Counsel, which will be

complementary to our high net worth private client group.”

Market Overview

3

Date

S&P 500

10yr

Risk Premium

6/30/2014

5.51%

less

2.53%

=

2.98%

12/31/2013

5.54%

less

3.04%

=

2.50%

6/28/2013

6.48%

less

2.52%

=

3.96%

Equity Risk Premium

Rates

Flows

Period

S&P 500

Dow

U.S. 10yr

Yield

VIX

Equity

ADV

Corporate

Bond ADV

Equity

Mutual

Fund ($)

U.S. ECM

($)

U.S. DCM

($)

Municipal

Bond DCM

($)

U.S.

Announced

M&A ($)

U.S.

Completed

M&A ($)

2014 Q2

1,960

16,827

2.53%

11.6

6,053

21,086

11.0

83,276

511,307

88,100

437,829

202,682

2014 Q1

1,872

16,458

2.72%

13.9

6,944

21,854

56.2

58,733

546,728

63,600

300,917

345,386

2Q

5%

2%

-19 bps

-17%

-13%

-4%

-81%

42%

-6%

39%

45%

-41%

6M 2014

1,960

16,827

2.53%

11.6

6,453

42,940

67.2

142,009

1,058,036

151,700

738,746

548,069

6M 2013

1,606

14,910

2.49%

16.9

6,441

41,021

70.4

136,510

1,194,511

176,800

517,109

469,376

YTD

6%

2%

-51 bps

-16%

6M/6M

0%

5%

-5%

4%

-11%

-14%

43%

17%

Underwriting Volumes and M&A

Volatility / Volumes

Market Valuations

(1)

Volumes are in million $, except trading volumes which are in million shares.

Source: Dealogic, SIFMA, ICI, KBW Research.

Financial

Results

Stifel Financial Corp. Results

Three months ended June 30, 2014

5

(1)

Non-core adjustments consist of merger-related revenues and expenses associated with our recent acquisitions and discontinued

operations of SN Canada.

(2)

Results for the three months ended June 30, 2013 and March 31, 2014 are Core (non-GAAP).

_________________________________________________________

(1)

(2)

(2)

($ in thousands, except per share amounts)

Non-GAAP

Non-Core

GAAP

6/30/13

% Change

3/31/14

% Change

Total revenues

570,543

$      

(1,554)

$         

568,989

$      

508,022

$      

12.3%

557,288

$   

2.4%

Interest expense

9,048

(206)

8,842

12,608

(28.2%)

8,853

2.2%

Net revenues

561,495

(1,348)

560,147

495,414

13.3%

548,435

2.4%

Compensation and benefits

353,754

1,513

355,267

311,228

13.7%

344,487

2.7%

Non-comp operating expenses

122,811

4,546

127,357

108,964

12.7%

119,376

2.9%

Total non-interest expenses

476,565

6,059

482,624

420,192

13.4%

463,863

2.7%

Income from continuing operations before income taxes

84,930

(7,407)

77,523

75,222

12.9%

84,572

0.4%

Provision for income taxes

33,664

(1,718)

31,946

30,089

11.9%

32,544

3.4%

Net income from continuing operations

51,266

$        

(5,689)

$         

45,577

$        

45,133

$        

13.6%

52,028

$     

(1.5%)

Discontinued operations:

Loss from discontinued operations, net of tax

-

(1,976)

(1,976)

-

-

Net income

51,266

$        

(7,665)

$         

43,601

$        

45,133

$        

13.6%

52,028

$     

(1.5%)

Earnings per diluted common share:

Income from continuing operations

0.68

$             

(0.08)

$           

0.60

$             

0.69

$             

(1.4%)

0.69

$          

(1.4%)

Loss from discontinued operations

-

(0.02)

(0.02)

-

-

Earnings per diluted common share

0.68

$             

(0.10)

$           

0.58

$             

0.69

$             

(1.4%)

0.69

$          

(1.4%)

Weighted average number of shares outstanding:

Diluted

75,641

74,090

2.1%

75,691

(0.1%)

Ratios to net revenues:

Compensation and benefits

63.0%

63.4%

62.8%

62.8%

Non-comp operating expenses

21.9%

22.8%

22.0%

21.8%

Income from continuing operations before income taxes

15.1%

13.8%

15.2%

15.4%

Three Months Ended June 30, 2014

Three Months Ended

Stifel Financial Corp. Results

Six months ended June 30, 2014

6

(1)

Non-core adjustments consist of merger-related revenues and expenses associated with our recent acquisitions and discontinued

operations of SN Canada.

(2)

Results for the six months ended June 30, 2013 are Core (non-GAAP). 

_________________________________________________________

(1)

(2)

($ in thousands, except per share amounts)

Non-GAAP

Non-Core

GAAP

6/30/13

% Change

Total revenues

1,127,831

$   

(3,465)

$          

1,124,366

$   

957,202

$       

17.8%

Interest expense

17,901

(428)

17,473

23,176

(22.8%)

Net revenues

1,109,930

(3,037)

1,106,893

934,026

18.8%

Compensation and benefits

698,241

3,797

702,038

592,355

17.9%

Non-comp operating expenses

242,187

7,017

249,204

202,458

19.6%

Total non-interest expenses

940,428

10,814

951,242

794,813

18.3%

Income from continuing operations before income taxes

169,502

(13,851)

155,651

139,213

21.8%

Provision for income taxes

66,208

(4,107)

62,101

54,022

22.6%

Net income from continuing operations

103,294

$       

(9,744)

$          

93,550

$         

85,191

$         

21.2%

Discontinued operations:

Loss from discontinued operations, net

-

(2,567)

(2,567)

Net income

103,294

$       

(12,311)

$       

90,983

$         

85,191

$         

21.2%

Earnings per diluted common share:

Income from continuing operations

1.37

$              

(0.13)

$            

1.24

$              

1.19

$              

15.1%

Loss from discontinued operations, net

-

(0.04)

(0.04)

Earnings per diluted common share

1.37

$              

(0.17)

$            

1.20

$              

1.19

$              

15.1%

Weighted average number of shares outstanding:

Diluted

75,665

71,627

5.6%

Ratios to net revenues

:

Compensation and benefits

62.9%

63.4%

63.4%

Non-comp operating expenses

21.8%

22.5%

21.7%

Income from continuing operations before income taxes

15.3%

14.1%

14.9%

Six Months Ended June 30, 2014

Six Months Ended

Source of Revenues

7

($ in thousands)

6/30/14

6/30/13

%

Change

3/31/14

%

Change

6/30/14

6/30/13

%

Change

Commissions

152,712

$  

154,795

$  

(1.3%)

159,416

$      

(4.2%)

312,128

$    

300,662

$    

3.8%

Principal transactions

125,676

111,306

12.9%

126,461

(0.6%)

252,137

218,570

15.4%

Brokerage revenues

278,388

266,101

4.6%

285,877

(2.6%)

564,265

519,232

8.7%

Capital raising

81,159

71,303

13.8%

73,804

10.0%

154,690

121,152

27.7%

Advisory

60,356

48,140

25.4%

58,500

3.2%

119,129

75,196

58.4%

Investment banking

141,515

119,443

18.5%

132,304

7.0%

273,819

196,348

39.5%

Asset mgt and service fees

94,231

76,088

23.8%

89,170

5.7%

183,401

145,000

26.5%

Other

8,742

11,787

(25.8%)

5,200

68.1%

13,942

32,206

(56.7%)

Total operating revenues

522,876

473,419

10.4%

512,551

2.0%

1,035,427

892,786

16.0%

Interest revenue

46,113

32,893

40.2%

42,826

7.7%

88,939

62,699

41.9%

Total revenues

568,989

506,312

12.4%

555,377

2.5%

1,124,366

955,485

17.7%

Interest expense

8,842

12,634

(30.0%)

8,631

2.4%

17,473

23,203

(24.7%)

Net revenues

560,147

$  

493,678

$  

13.5%

546,746

$      

2.5%

1,106,893

$

932,282

$    

18.7%

Three Months Ended

Six Months Ended

Brokerage & Investment Banking Revenues

8

($ in thousands)

6/30/14

6/30/13

% Change

3/31/14

% Change

6/30/14

6/30/13

% Change

Global Wealth Management

161,780

$ 

160,889

$ 

0.6%

161,505

$ 

0.2%

323,285

$ 

319,262

$ 

1.3%

Institutional Group

Equity brokerage

62,087

64,273

(3.4%)

65,768

(5.6%)

127,855

113,511

12.6%

Fixed income brokerage

54,520

40,939

33.2%

58,604

(7.0%)

113,124

86,439

30.9%

Total Institutional Group

116,607

105,212

10.8%

124,372

(6.2%)

240,979

199,950

20.5%

Total brokerage revenues

278,387

266,101

4.6%

285,877

(2.6%)

564,264

519,212

8.7%

Investment Banking:

Capital raising

Equity

65,750

53,577

22.7%

60,696

8.3%

126,174

85,172

48.1%

Fixed income

15,409

17,726

(13.1%)

13,108

17.6%

28,516

35,980

(20.7%)

Total capital raising

81,159

71,303

13.8%

73,804

10.0%

154,690

121,152

27.7%

Advisory fees

60,356

48,140

25.4%

58,500

3.2%

119,129

75,196

58.4%

Total Investment banking

141,515

119,443

18.5%

132,304

7.0%

273,819

196,348

39.5%

Three Months Ended

Six Months Ended

Core Non-Interest Expenses

Three months ended June 30, 2014

9

_________________________________________________________

(1)

Excludes non-core  adjustments consisting of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN Canada.

(2)

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

($ in thousands)

6/30/14

(1)

6/30/13

% Change

3/31/14

% Change

6/30/14

(1)

6/30/13

3/31/14

Net revenues

561,495

$    

495,414

$    

13.3%

548,435

$    

2.4%

100.0%

100.0%

100.0%

Compensation and benefits

328,380

290,511

13.0%

321,035

2.3%

58.5%

58.6%

58.5%

Transitional pay

(2)

25,374

20,717

22.5%

23,452

8.2%

4.5%

4.2%

4.3%

Total compensation and benefits

353,754

311,228

13.7%

344,487

2.7%

63.0%

62.8%

62.8%

Occupancy and equipment rental

40,493

37,768

7.2%

39,570

2.3%

7.2%

7.6%

7.2%

Communication and office supplies

25,691

24,124

6.5%

24,801

3.6%

4.6%

4.9%

4.5%

Commissions and floor brokerage

9,248

9,374

(1.3%)

9,028

2.4%

1.6%

1.9%

1.6%

Other operating expenses

47,379

37,698

25.7%

45,977

3.0%

8.4%

7.6%

8.5%

Total non-comp operating expenses

122,811

108,964

12.7%

119,376

2.9%

21.9%

22.0%

21.8%

Total non-interest expense

476,565

420,192

13.4%

463,863

2.7%

84.9%

84.8%

84.6%

Income from continuing operations before income taxes

84,930

75,222

12.9%

84,572

0.4%

15.1%

15.2%

15.4%

Provision for income taxes

33,664

30,089

11.9%

32,544

3.4%

6.0%

6.1%

5.9%

Non-GAAP net income from continuing operations

51,266

$      

45,133

$      

13.6%

52,028

$      

(1.5%)

9.1%

9.1%

9.5%

Non-core expenses (after-tax)

(5,689)

(14,217)

(4,055)

GAAP net income from continuing operations

45,577

$      

30,916

$      

47,973

$      

Three Months Ended

% of Net revenues

Core Non-Interest Expenses

Six months ended June 30, 2014

10

_________________________________________________________

(1)

Excludes non-core  adjustments consisting of merger-related revenues and expenses associated with our recent acquisitions and discontinued operations of SN

Canada.

(2)

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

($ in thousands)

6/30/14

(1)

6/30/13

% Change

6/30/14

(1)

6/30/13

Net revenues

1,109,930

$ 

934,026

$    

18.8%

100.0%

100.0%

Compensation and benefits

649,415

550,812

17.9%

58.5%

59.1%

Transitional pay

(2)

48,826

41,543

17.5%

4.4%

4.4%

Total compensation and benefits

698,241

592,355

17.9%

62.9%

63.4%

Occupancy and equipment rental

80,063

68,741

16.5%

7.2%

7.4%

Communication and office supplies

50,492

45,459

11.1%

4.5%

4.9%

Commissions and floor brokerage

18,276

17,823

2.5%

1.6%

1.9%

Other operating expenses

93,356

70,435

32.5%

8.4%

7.6%

Total non-comp operating expenses

242,187

202,458

19.6%

21.8%

21.7%

Total non-interest expense

940,428

794,813

18.3%

84.7%

85.1%

Income from continuing operations before income taxes

169,502

139,213

21.8%

15.3%

14.9%

Provision for income taxes

66,208

54,022

22.6%

6.0%

5.8%

Non-GAAP net income from continuing operations

103,294

$    

85,191

$      

21.2%

9.3%

9.1%

Non-core expenses (after-tax)

(9,744)

(39,339)

GAAP net income from continuing operations

93,550

$      

45,852

$      

Six Months Ended

% of Net revenues

11

Three Months Ended

($ in thousands)

3/31/14

6/30/14

9/30/14

12/31/14

Acquisitions

Acacia Federal Savings Bank

1,723

$      

2,762

$      

De La Rosa & Co., Inc.

130

765

Keefe, Bruyette & Woods, Inc.

1,008

1,657

Knight Fixed Income

2,407

94

Miller Buckfire & Co., LLC

1,172

1,233

Ziegler Capital Management

4

11

6,444

6,522

4,000

2,500

Oriel Securities Holding Limited

-

557

Legg Mason Invesment Counsel

-

328

Total Deal Costs (Pre-tax)

6,444

$      

7,407

$      

4,000

$      

2,500

$      

Discontinued Operations, net

(591)

$        

(1,976)

$     

(200)

$        

-

$           

Actual

Estimate

Undetermined

Undetermined

Non-Core Deal Costs

Segment Comparison -

Core

12

(1)

Excludes the other segment.

_________________________________________________________

($ in thousands)

6/30/14

6/30/13

%

Change

3/31/14

%

Change

6/30/14

6/30/13

%

Change

Net revenues:

Global Wealth Management

307,247

$ 

282,717

$ 

8.7%

297,183

$ 

3.4%

604,430

$  

549,674

$  

10.0%

Institutional Group

255,712

215,444

18.7%

249,977

2.3%

505,689

388,744

30.1%

Other

(1,464)

(2,747)

46.7%

1,275

(214.8%)

(189)

(4,392)

95.7%

561,495

$ 

495,414

$ 

13.3%

548,435

$ 

2.4%

1,109,930

$

934,026

$  

18.8%

Operating contribution:

Global Wealth Management

89,098

$   

78,924

$   

12.9%

79,676

$   

11.8%

168,774

$  

148,423

$  

13.7%

Institutional Group

42,690

31,083

37.3%

45,622

(6.4%)

88,312

59,313

48.9%

Other

(46,858)

(34,785)

(34.7%)

(40,726)

(15.1%)

(87,584)

(68,523)

(27.8%)

84,930

$   

75,222

$   

12.9%

84,572

$   

0.4%

169,502

$  

139,213

$  

21.8%

Operating contribution

Global Wealth Management

29.0

27.9

26.8

27.9

27.0

Institutional Group

16.7

14.4

18.3

17.5

15.3

15.1

15.2

15.4

15.3

14.9

As a percentage of net revenues:

(1)

Three Months Ended

Six Months Ended

Non Comp Operating Expenses by Segment -

Core

13

($ in thousands)

6/30/14

6/30/13

%

Change

3/31/14

%

Change

6/30/14

6/30/13

%

Change

Non-comp operating expenses:

Global Wealth Management

46,425

$    

40,637

$    

14.2%

43,339

$    

7.1%

89,764

$     

80,499

$     

11.5%

Institutional Group

55,523

51,964

6.8%

50,399

10.2%

105,862

90,213

17.3%

Other

20,863

16,363

27.5%

25,638

(18.6%)

46,561

31,746

46.7%

122,811

$  

108,964

$  

12.7%

119,376

$  

2.9%

242,187

$   

202,458

$   

19.6%

Three Months Ended

Six Months Ended

(1)

Excludes the other segment.

_________________________________________________________

Global Wealth Management

($ in thousands)

6/30/14

6/30/13

% Change

3/31/14

% Change

6/30/14

6/30/13

% Change

Commissions

107,438

$   

104,576

$   

2.7%

107,739

$   

(0.3%)

215,177

$   

206,662

$   

4.1%

Principal transactions

54,342

56,313

(3.5%)

53,766

1.1%

108,108

112,620

(4.0%)

Asset management & service fees

94,187

75,976

24.0%

89,130

5.7%

183,317

144,910

26.5%

Net interest

35,839

24,505

46.2%

35,262

1.6%

71,101

45,991

54.6%

Investment banking

9,892

15,334

(35.5%)

9,926

(0.3%)

19,818

26,437

(25.0%)

Other income

5,549

6,013

(7.7%)

1,360

307.9%

6,909

13,054

(47.1%)

Net revenues

307,247

282,717

8.7%

297,183

3.4%

604,430

549,674

10.0%

Compensation and benefits

171,724

163,156

5.3%

174,168

(1.4%)

345,892

320,752

7.8%

Non-comp operating expenses

46,425

40,637

14.2%

43,339

7.1%

89,764

80,499

11.5%

Total non-interest expenses

218,149

203,793

7.0%

217,507

0.3%

435,656

401,251

8.6%

Income before income taxes

89,098

$     

78,924

$     

12.9%

79,676

$     

11.8%

168,774

$   

148,423

$   

13.7%

Ratios to net revenues

:

Compensation and benefits

55.9%

57.7%

58.6%

57.2%

58.4%

Non-comp operating expenses

15.1%

14.4%

14.6%

14.9%

14.6%

Income before income taxes

29.0%

27.9%

26.8%

27.9%

27.0%

Three Months Ended

Six Months Ended

14

Stifel Bank & Trust

(an operating unit of GWM)

15

Note:  Actual amounts presented above are as of period-end and yields are based off of quarter-to-date averages.

(1)

Investment securities includes available-for-sale and held-to-maturity securities.

(2)

Includes loans held for sale.

_________________________________________________________

Actual ($)

Yield (%)

Actual ($)

Yield (%)

Actual ($)

Yield (%)

Q214 v Q213

Q214 v Q114

Assets

Federal funds sold

132,152

0.37

110,514

0.24

181,438

0.55

19.6

(27.2)

Investment securities

(1)

2,915,235

2.47

2,956,073

2.14

3,083,902

2.54

(1.4)

(5.5)

Bank loans

(2)

1,893,330

3.38

1,137,011

3.35

1,616,832

3.49

66.5

17.1

Total interest earning assets

4,940,717

2.73

4,203,598

2.42

4,882,172

2.67

17.5

1.2

Other assets (non-interest earning)

109,319

102,849

112,043

6.3

(2.4)

Total assets

5,050,036

4,306,447

4,994,215

17.3

1.1

Liabilities

Deposits

4,653,656

0.14

4,007,050

0.31

4,605,260

0.15

16.1

1.1

Other liabilities (non-interest bearing)

26,182

14,410

37,265

81.7

(29.7)

Total liabilites

4,679,838

4,021,460

4,642,525

16.4

0.8

Net interest margin

2.59

2.13

2.53

Allowance for loan losses

17,104

$        

10,919

$             

14,131

$            

56.6

21.0

Allowance as a percentage of loans

0.97%

1.10%

0.94

%

Non-performing assets as a percentage of total assets

0.10%

0.03%

0.03

%

% Change

As of 6/30/14

As of 6/30/13

As of 3/31/14

Institutional Group

16

($ in thousands)

6/30/14

6/30/13

% Change

3/31/14

% Change

6/30/14

6/30/13

% Change

Net revenues

255,712

$  

215,444

$  

18.7%

249,977

$  

2.3%

505,689

$  

388,744

$  

30.1%

Compensation and benefits

157,499

132,397

19.0%

154,016

2.3%

311,515

239,218

30.2%

Non-comp operating expenses

55,523

51,964

6.8%

50,339

10.3%

105,862

90,213

17.3%

Total non-interest expenses

213,022

184,361

15.5%

204,355

4.2%

417,377

329,431

26.7%

Income before income taxes

42,690

$    

31,083

$    

37.3%

45,622

$    

(6.4%)

88,312

$    

59,313

$    

48.9%

Ratios to net revenues :

Compensation and benefits

61.6%

61.5%

61.6%

61.6%

61.5%

Non-comp operating expenses

21.7%

24.1%

20.1%

20.9%

23.2%

Income before income taxes

16.7%

14.4%

18.3%

17.5%

15.3%

Three Months Ended

Six Months Ended

Financial

Condition

Capital Structure

As of June 30, 2014

(in thousands, except ratios)

18

_________________________________________________________

(1)

(2)

($ in thousands)

Total Assets

9,575,012

$ 

Stockholders' Equity

2,173,191

$ 

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

2,580,691

$ 

4.250% senior notes, due 2024

300,000

Total Capitalization (pro forma)

2,880,691

$ 

Ratios:

Debt to Equity

(1)

18.8%

Pro Forma Debt to Equity

(2)

32.6%

Tier 1 Leverage Ratio

15.4%

Tier 1 Risk Based Capital Ratio

25.5%

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

stockholders’ equity.

Pro forma debt to equity ratio includes the $300.0 million, 4.250% senior notes issued in July 2014.

19

Other Financial Data

(1)

_________________________________________________________

As of

6/30/14

6/30/13

% Change

3/31/14

% Change

Total assets (000s):

Stifel Nicolaus & Stifel Financial

4,524,976

$         

4,186,744

$      

8.1%

4,393,599

$      

3.0%

Stifel Bank

5,050,036

4,306,447

17.3%

4,994,215

1.1%

Total assets

9,575,012

$         

8,493,191

$      

12.7%

9,387,814

$      

2.0%

Total shareholders' equity (000s):

Stifel Nicolaus & Stifel Financial

1,802,993

$         

1,613,003

$      

11.8%

1,748,450

$      

3.1%

Stifel Bank

370,198

284,987

29.9%

351,690

5.3%

Total shareholders' equity

2,173,191

$         

1,897,990

$      

14.5%

2,100,140

$      

3.5%

Leverage ratio:

Stifel Nicolaus & Stifel Financial

2.0

2.0

1.4%

2.0

0.4%

Stifel Bank

13.6

15.1

(9.7%)

14.2

(3.9%)

Total leverage ratio

3.7

3.6

3.0%

3.7

(0.9%)

Book value per share

33.18

$                  

30.05

$              

10.4%

32.09

$              

3.4%

Financial advisors

(1)

2,085

2,069

0.8%

2,081

0.2%

Full-time associates

5,881

5,759

2.1%

5,831

0.9%

Locations

361

357

1.1%

359

0.6%

Total client assets (000s)

173,383,000

$    

150,628,000

$ 

15.1%

168,899,000

$ 

2.7%

As of

Includes 140, 145 and 141 independent contractors as of June 30, 2014, June 30, 2013, and March 31, 2014.

Acquisition Updates

Investment Counsel

20

Closed April 3, 2014

Fully integrated into Stifel’s Public Finance business

Ranked #1 senior manager in the first six months of

2014 in California in terms of dollar volume and the

number of issues underwritten

Closed July 31, 2014

Business as usual through the balance of 2014

Integration and conversion efforts scheduled for

Q1 2015

Expected to close in the fourth quarter 2014

Working through customary regulatory, mutual fund 

conversion, and account change processes

21

Acquisition Updates

Closed November 30, 2013

Strong asset and earnings growth since the acquisition

New asset management strategies and coordinated marketing

with Stifel’s existing asset management platform 

Closed February 15, 2013

2Q 2014 was KBW’s best quarter since 1Q 2011

Improving market share –

Advised 7 of top 10 bank mergers

in 1H14.

Client facing and major systems integration completed

Closed October 31, 2013

Single branch location closed; Cost saving targets fully achieved

>5% yield on 1-4 family loan portfolio, short duration (avg ~1 year

to re-price)

Annualized run rate on pace to exceed target of $10mm/year

Closed July 1, 2013

Revenue expectations achieved

Q&A