NOTE 20 – Segment Reporting

We currently operate through the following three business segments: Global Wealth Management, Institutional Group, and various corporate activities combined in the Other segment.

Our Global Wealth Management segment consists of two businesses, the Private Client Group and Stifel Bank. The Private Client Group includes branch offices and independent contractor offices of our broker-dealer subsidiaries located throughout the United States. These branches provide securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance, as well as offering banking products to their clients through Stifel Bank. Stifel Bank segment provides residential, consumer, and commercial lending, as well as FDIC-insured deposit accounts to customers of our broker-dealer subsidiaries and to the general public.

The Institutional Group segment includes institutional sales and trading. It provides securities brokerage, trading, and research services to institutions, with an emphasis on the sale of equity and fixed income products. This segment also includes the management of and participation in underwritings for both corporate and public finance (exclusive of sales credits generated through the private client group, which are included in the Global Wealth Management segment), merger and acquisition, and financial advisory services.

The Other segment includes interest income from stock borrow activities, unallocated interest expense, interest income and gains and losses from investments held, amortization of stock-based awards for certain administrative employees, compensation expense associated with the expensing of restricted stock awards with no continuing service requirements in conjunction with recent acquisitions, and all unallocated overhead cost associated with the execution of orders; processing of securities transactions; custody of client securities; receipt, identification, and delivery of funds and securities; compliance with regulatory and legal requirements; internal financial accounting and controls; and general administration and acquisition charges.

Information concerning operations in these segments of business for the three and nine months ended September 30, 2017 and 2016 is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net revenues: ⁽¹⁾
Global Wealth Management	$	453,558		$	390,032		$	1,348,280		$	1,155,875
Institutional Group		264,747			258,800			778,367			760,996
Other		2,864			(6,846	)		(4,300	)		(2,766	)
	$	721,169		$	641,986		$	2,122,347		$	1,914,105
Income/(loss) before income taxes:
Global Wealth Management	$	161,756		$	109,079		$	457,045		$	307,466
Institutional Group		51,717			44,923			144,481			116,628
Other		(105,334	)		(126,020	)		(331,170	)		(336,406	)
	$	108,139		$	27,982		$	270,356		$	87,688

⁽¹⁾	No individual client accounted for more than 10 percent of total net revenues for the three and nine months ended September 30, 2017 or 2016.

The following table presents our company’s total assets on a segment basis at September 30, 2017 and December 31, 2016 (in thousands):

	September 30, 2017		December 31, 2016
Global Wealth Management	$	17,619,527	$	16,065,503
Institutional Group		2,484,337		2,657,183
Other		380,216		406,670
	$	20,484,080	$	19,129,356

We have operations in the United States, United Kingdom, and Europe. The Company’s foreign operations are conducted through its wholly owned subsidiary, SNEL. Substantially all long-lived assets are located in the United States.

Revenues, classified by the major geographic areas in which they are earned for the three and nine months ended September 30, 2017 and 2016, were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
United States	$	681,337	$	602,422	$	2,020,598	$	1,796,143
United Kingdom		38,103		37,139		95,393		110,731
Other European		1,729		2,425		6,356		7,231
	$	721,169	$	641,986	$	2,122,347	$	1,914,105