Stifel Financial Corp.

November 2014

Exhibit 99.1

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

from

continuing

operations

before

income

taxes,

provision

for

income

taxes,

net

income

from

continuing

operations,

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

nine

months

ended

September

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.

Stifel Overview

4

Stifel –

Premier Investment Bank and Full-Service Investment Firm

Stifel

at a Glance

Core Net Revenue -

$2,199 million (TR12)

Global Wealth Management (GWM)

Net Revenue -

$1,215million (TR12)

Private Client

Stifel Bank & Trust

Margin and Securities-based Lending

Asset Management

Institutional Group (IG)

Net Revenue -

$988 million (TR12)

Equity & Fixed Income Capital Raising

M&A Advisory / Restructuring

Institutional Equity and Fixed Income Brokerage

Independent Research

Low leverage (3.2x)

(1) (2)

,

$2.2 billion stockholders’

equity

(2)

and $3.1 billion market capitalization

(3)

34% Insider ownership aligns employees' interests with other shareholders

(4)

Over 6,000 associates

(2)

Balanced business mix (56% GWM / 44% IG) (9M 2014 net revenues)

Over 2,000 financial advisors

(2)

with $173 billion in combined client assets

(2)

–

national presence

Largest U.S. equity research platforms with over 1,400 stocks under coverage

(2)

Broad

investment

banking

and

institutional

sales

and

trading

capabilities

–

domestic

and

international

(1)

Assets / equity (as adjusted).

(2)

As of 9/30/2014. 

(3)

As of 11/10/2014.

(4)

Insider ownership percentage includes all fully diluted shares, units outstanding and options outstanding, as of 9/8/2014.

5

Bulge Bracket

Boutique

Leading broker-dealer providing wealth management and

institutional services to consumers and companies

Stifel’s Differentiated Value Proposition: Growth, Scale and Stability

Institutional

Wealth Management

Retail Brokerage by Number of Brokers

Size  / scale

Large distribution

Trading

Retail

Issues

Lack of focus

Banker turnover

Lack of commitment

Research indifference

Lack of growth investors

Firm focus

Good research

Growth investor access

Issues

Financial / firm stability

Trading support

Few with retail

Size  / scale

Firm focus

Stability (financial & personnel)

Large distribution

Trading

Outstanding research

Retail

LARGEST

provider of U.S. equity research

2

nd

LARGEST

Equity trading platform in the U.S.

outside of the Bulge Bracket firms

(3)

FULL SERVICE

investment banking with

expertise across products and industry sectors

ACCESS

TO

top

ten

private

client

platform

Source: SIFMA and publicly available information for U.S. brokerage networks.

Note:  Includes investment banks only. .

(1)

Represents Wealth Management Americas segment only.

(2)

Excludes 3,685 independent contractors.

(3)

Based on 2013 U.S. trading volume per Bloomberg.

6

2005

Legg Mason’s

Capital Markets

Division  Acquired

2009

56 UBS Private Client

Branches Acquired

2010

Thomas Weisel

Partners Merger

2007

Ryan Beck

Acquisition

2011

Stone & Youngberg

Acquisition

2013

Keefe, Bruyette &

Woods

Acquisition

2012

#1 Ranked in

FT/StarMine

Award*

2008

#1 Ranked in FT/StarMine

Stock Picking

2010

#1 Ranked in both

FT/StarMine & WSJ

Best on the Street

Unwavering Commitment

2013

Knight Capital

Group’s Fixed

Income Division

2013

#2 Ranked in

FT/StarMine

Award

2013

Acacia Bank &

Ziegler Lotsoff

2007

Acquired Stifel Bank

& Trust

2014

De La Rosa,

Oriel Securities

& 1919 IC

Significant Growth

2012

Miller Buckfire

2008

Butler Wick

7

Building Scale

Growth Focused

Investment Banking

Research, Sales and Trading

Achieved cost efficiencies

July 2010

Private Client

Revenue production has exceeded

expectations

October 2009

Significant enhancement to our

Capital Markets business

Achieved cost savings objectives

December 2005

Bank holding company

Financial holding company

Grown assets from ~ $100M to $5.0B

April 2007

Private Client

Public Finance

Seamless & efficient integration

December 2008

Fixed Income IB

Fixed Income Sales and Trading

Private Client

Seamless & efficient integration

October 2011

FIG Investment Banking

FIG Sales and Trading / Research

Exceeded expectations

February 2013

56 UBS Branches

Private Client

Capital Markets

Achieved cost savings objectives

February 2007

Restructuring advisory

December 2012

Knight

Fixed Income

Fixed Income Sales and

Trading –

U.S. & Europe

Fixed Income Research

July 2013

Asset Management

Over $4 billion in assets

November 2013

Clean portfolio of 1-4 family

residential mortgages

October 2013

Each merger has been accretive to Stifel and retention remains high

California-based investment

bank and bond underwriter

April 2014

UK-based full service

investment bank

July 2014

Customized investment

advisory and trust services

November 2014

8

Closed July 31, 2014

Full-service broker-dealer based in London

Research, sales, trading and investment banking

23 analysts covering more than 260 UK companies in 9 industries

Integration and conversion efforts scheduled for Q1 2015

Added approximately $3.5 million in incremental non-compensation

expenses in the third quarter

Acquisition Updates

Closed November 7, 2014

$9.4 billion in AUM as of September 30, 2014

Provides customized investment advisory, trust and family offices

services

Clients include individuals, families, and institutions

1919 is the year their legacy firm was founded

Offices

are

located

in

Baltimore,

Cincinnati,

New

York

and

Philadelphia

Closed February 15, 2013

Consolidation is complete

2014 #1 Bank M&A Advisor based on deal value¹

Advised on 11 of Top 20 bank mergers YTD¹

FIG

ECM

market

share

up

60+%

from

FY2012

through

1

st

9M

2014

Outperforming equity brokerage desk

¹As of 11/12/14.

9

Well-diversified, low risk business model with balanced retail

and institutional exposure

9

Unburdened by capital constraints

Low leverage business model and conservative risk management

Limited balance sheet risk

Stable

wealth

management

business

is

augmented

by

profitable

and

growing

institutional

business

Drive revenue synergies by leveraging the wealth management and institutional business

Net Revenues

9M 2013

9M 2014

Core Operating Contribution

9M 2013

9M 2014

Balanced business model facilitates growth in all market environments

Note: Net revenues and operating contribution percentages excludes the Other segment. Refer to slide 30 for additional segment information.

10

Demonstrated ability to grow through all market environments

while maintaining solid profitability

(1)

CAGR reflects years 2006 to 2013.

CAGR: 24%

Core Net Revenues ($MM)

(1)

Core Net Income ($MM)

(1)

Financial Crisis

Financial Crisis

CAGR: 24%

11

PROJECTED INCREASE IN PRE-TAX EARNINGS FROM A 200 BPS RISE IN RATES

($ millions; as of September 30, 2014)

Key Assumptions:

•

Based on static balances on

September 30, 2014 and an

instantaneous change in

rates

•

Ultimately, the amount

earned by clients and kept

by the firm will be influenced

by market/competitive

pricing, rates available on

substitute products, the

firm’s philosophy/ strategy,

etc.

•

The firm is expected to keep

40 bps of the every 100 bps

increase and pass the

remaining 60 bps to clients

$15 - 20

$60 - 70 (19 - 22%)*

$45 - 50

*: % based upon 3Q'14 annualized non-GAAP results

Account and Service Fees in

PCG

Projected Incremental Pre-Tax

Earnings

Net Interest Income

Interest Rate Risk Profile

Segment Overview –

Global Wealth Management

13

(1)

Includes Independent Contractors.

(2)

CAGR reflects years 2006 to 2013.

Global Wealth Management

Provides Securities Brokerage Services and Stifel Bank Products

CAGR: 29%

CAGR: 25%

Net Revenues ($MM)

(2)

Core Operating Contribution ($MM)

(2)

Overview

National Presence

Grown from 600+ financial advisors in 2005 to over

2,000

(1)

financial advisors currently

Proven organic growth and acquirer of private client

business

Individual investors are generally mid-

to long-term

buyers

Goal of providing price stability and support to the

institutional order book

Strategy of recruiting experienced advisors with

established client relationships

Expanding U.S. footprint

14

(1)

Includes Independent Contractors.

Global Wealth Management

Key Operating Metrics

Accounts

Financial Advisors

(1)

Assets Under Management ($MM)

Branches

15

15

Note: Data as of 9/30/14

(1)

Average interest earning assets as of 9/30/14.

(2)

Non-agency MBS makes up less than 1% of Investment Portfolio.

(3)

Construction and Land and Commercial Real Estate make up less than 1% of the loan portfolio.

Interest Earnings Assets

(1)

Investment Portfolio

Total: $5.0 Billion

Total: $2.7 Billion

(2)

Stifel Bank and Trust

Total: $1.9 Billion

(3)

Loan Portfolio (Gross)

Acquired FirstService Bank, a St. Louis-based,

Missouri-chartered commercial bank, in April 2007

Stifel Financial became a bank holding company and

financial services holding company

Balance sheet growth with low-risk assets

Funded by Stifel Nicolaus client deposits

Maintain high levels of liquidity

Overview

Strength of Brokerage Position

Offers banking products (securities based loans and

mortgage loans) within the GWM client base,

including establishing trust services

Built-in source of business

High net worth clients

Highly efficient due to lack of “brick and mortar”

deposit focused facilities

$9.4 Billion

$5.9 Billion

$2.4 Billion

$880 Million

$700 Million

$300 Million

Assets¹

Location

Growing Asset Management Capabilities

16

¹Asset

as

of

September

30,

2014.

Includes

assets

under

advisement

and

assets

under

management

Missouri

Valley

Partners

merged

with

Ziegler

Capital

Management,

LLC

on

10/31/2014

Total Assets: $19.6 Billion¹

Baltimore, New York,

Cincinnati, Philadelphia

Chicago, Milwaukee,

St. Louis

Baltimore, MD

Portland, OR

Florham Park, NJ

San Francisco, CA

Segment Overview –

Institutional Group

18

(1)

Based

on

2013

U.S.

trading

volume

per

Bloomberg.

(2)

Includes

Thomas

Weisel

historical

investment

banking

revenues

for

years

2006

through

September

30,

2010.

(3)

2012

includes

realized

and

unrealized

gains

on

the

Company’s

investment

in

Knight

Capital

Group,

Inc.

of

$39.0

million.

Institutional Group

Net Revenues ($MM)

(2)(3)

Fixed Income Brokerage + Investment Banking

Overview

Provides securities brokerage, trading, research,

underwriting and corporate advisory services

Largest provider of U.S. Equity Research

2

nd

largest Equity trading platform in the U.S.

outside of the Bulge Bracket

(1)

Full Service Investment Bank

Comprehensive Fixed Income platform

Equity Brokerage + Investment Banking

(2)

19

U.S. Equity Research Coverage

(1)

Coverage Balanced Across All Market Caps

(3)

Institutional Group –

Research

Stifel Research Highlights

19

Largest U.S. Equity Research Platform

Largest provider of U.S. Equity Research

Largest provider of U.S. Small Cap Research

111 analyst across 12 sectors

Largest provider of Financial Services coverage

Ranked #2 in the FT/Starmine 2014 Survey

(2)

(1)

Source: StarMine rankings as of 9/10/14 for US Domiciled stocks with a rating. Does not include Closed End Funds.

(2)

Ranking includes both Stifel and KBW.

(3)

Small Cap includes market caps less than $1 billion; Mid Cap includes market caps less than $5 billion.

Research coverage distribution as of 8/20/14.

Rank

Firm

Overall

Mid Cap

Small Cap

1

Stifel / KBW

1,412

515

454

2

BofA Merrill Lynch

1,173

459

142

3

Goldman Sachs

1,102

398

94

4

Wells Fargo Securities, Llc

1,075

415

165

5

JPMorgan

1,053

386

139

6

Raymond James

1,008

393

271

7

Credit Suisse

946

296

155

8

Morgan Stanley

943

305

86

9

Barclays

925

314

94

10

RBC Capital Markets

918

324

126

11

Deutsche Bank Securities

894

283

124

12

Jefferies & Co.

871

296

183

13

Citi

866

290

103

14

UBS

750

216

70

15

Robert W. Baird & Co., Inc.

672

244

150

16

Morningstar, Inc.

648

131

16

17

William Blair & Company

593

208

165

18

BMO Capital Markets

592

180

103

19

Cowen And Company

586

167

168

20

Keybanc Capital Markets

552

267

112

21

Piper Jaffray

533

185

175

22

Oppenheimer & Co.

516

165

108

20

Institutional Equity Sales

Equity Trading

Institutional Group –

Equity Sales and Trading

20

Extensive Distribution Network

Powerful Platform Spanning North America and Europe

103 person sales force, commission based

Experts in small and mid cap growth and value

Team based sales model with 2-4 sales people per

account

Team leaders have an average of 15 years experience

Offices in all major institutional markets in North

America & Europe

Accounts range from large mutual funds to small

industry focused investors

Managed over 780 non-deal roadshow days in 2013

Extensive experience with traditional and overnight

corporate finance transactions

92 sales traders located in

Baltimore, New York, Boston, Dallas, San

Francisco, and London

28 position traders covering each major industry

8 specialized traders focused on: Option Trading,

Convertible and ETF Trading

Profitable model with advantages of scale

Relationships with over 3,500 institutional accounts globally

Active daily market maker in over 3,700 stocks

Traded over 11.7 billion shares in 2013

Complete coverage of North America and Europe for North American

listed equities

Major liquidity provider to largest equity money management complexes

Multi-execution venues: high-touch, algorithms, program trading, and direct market access

Dedicated convertible sales, trading, and research desk

Overview

Strong Fixed Income Brokerage Capabilities

Institutional Group –

Fixed Income

Client Distribution

(1)(2)

Platform & Products

(1)

Client Distribution is as of 7/28/2014. 

(2)

Other

category

includes:

Credit

Union,

Corporation,

Hedge

Fund,

Pension

Fund,

Trust

Company,

Foundation,

Endowment,

University

&

Non-Profit.

21

Comprehensive platform

85 traders with annual client trade volume

approaching $400 billion

27-person Fixed Income Research and Strategy

Group

7 person US Corporate Debt Capital Markets Group

Widespread distribution

Nearly 200 Institutional sales professionals covering

over 6,200 accounts

34 institutional fixed income offices nationwide

European offices in London and Zurich

Customer-driven

Focus on long-only money

managers and income funds

versus hedge funds

Consistency of execution

Identification of relative

value through asset

class/security selection

US Government and Agency

Securities

Investment Grade Credit

Mortgage-Backed Securities (MBS)

Reverse MBS

Whole Loans

Government-Guaranteed Loans

Asset-Backed Securities (ABS)

Commercial Mortgage-Backed

Securities (CMBS)

Certificates of Deposit

Municipal Sales and Trading and

Public Finance

UK Sales and Trading (former

Knight Capital team)

High Yield and Distressed Credit

Loan Trading Group

Aircraft Finance & Credit Solutions

Hybrid Securities

Emerging Markets

Structured Products

Overview

Institutional Group –

Public Finance

22

Stifel has ranked in the top ten nationally for senior

managed negotiated underwritings for the past

three years, and Stifel has ranked number one

nationally for senior managed K-12 negotiated

underwritings since 2011.

Total of 21 Public Finance offices

105 Public Finance professionals

Specialty sectors:

Education

Local Government/Municipal

Healthcare

Public-Private Partnerships/Development

Housing

National K-12 2014YTD Negotiated Deal Rankings

Source: Thomson Reuters: SDC (True Economics to Book) Ranked by number of transactions.. 2014YTD as of 11/7/2014

Public Finance Underwritings

Rank

Book Runner

Par Amount

(US$ mil)

Number of

Issues

1

Stifel Nicolaus & Co Inc

4,042.7

246

2

RBC Capital Markets

3,119.2

196

3

Piper Jaffray & Co

2,677.0

129

4

Robert W Baird & Co Inc

1,507.5

121

5

D A Davidson & Co

1,162.8

113

6

Raymond James

2,229.7

102

7

George K Baum & Company Inc

1,092.5

90

8

LJ Hart & Company

254.7

77

9

Roosevelt & Cross Inc

444.7

61

10

BOSC Inc

1,204.2

57

11

Fifth Third Securities Inc

851.0

54

12

Ross Sinclaire & Associates LLC

163.3

43

13

First Midstate Inc

70.3

42

14*

Janney Montgomery Scott LLC

230.4

34

14*

Ameritas Investment Corp

199.6

34

16*

PNC Financial Services Group Inc

572.3

31

16*

FirstSouthwest

543.1

31

18

City Securities Corporation

353.3

27

19

Oppenheimer & Co

236.2

26

20

Citi

1,337.9

24

Negotiated

Number

Par Amount

Number

Par Amount

Number

Par Amount

Senior Manager/Private Placement

447

$8,629,489,674

598

$9,928,173,963

559

$9,989,033,787

Co-Manager

110

$22,972,262,051

151

$41,793,904,000

162

$53,169,398,000

Total

557

$31,601,751,725

749

$51,722,077,963

721

$63,158,431,787

Competitive

Number

Par Amount

Number

Par Amount

Number

Par Amount

Senior Manager

46

$3,210,384,999

73

$587,723,000

114

$803,240,000

Co-Manager

248

$5,603,053,734

268

$3,138,960,000

299

$4,586,264,000

Total

294

$8,813,438,733

341

$3,726,683,000

413

$5,389,504,000

September 30, 2014

2013

2012

September 30, 2014

2013

2012

Accomplished

U.S.

Equity

Underwriting

Franchise

–

All

Equity

Transactions

Investment Banking

Bookrun Equity Deals Since 2010

All Managed Equity Deals Since 2010

23

Source:

Dealogic.

Rank

eligible

SEC

registered

IPOs

and

Follow-On

offerings

since

2010.

Includes

demutualizations.

As

of

9/30/14.

Overlapping

deals

between

Stifel

and

its

acquired

firms

have

been

removed.

Note:

$

Volume

represents

full

credit

to

underwriter

for

All

Managed

Equity

Deals

and

apportioned

credit

to

bookrunner

for

Bookrun

Equity

Deals.

Financial Overview

25

(1)

CAGR reflects years 2006 to 2013.

(2)

Book Value Per Share adjusted for April 2011 three-for-two stock split (2006-2010).

Selected Financial Highlights

CAGR: 24%

CAGR: 24%

CAGR: 21%

CAGR: 24%

Core Net Revenues ($MM)

(1)

Core Net Income ($MM)

(1)

Total Equity ($MM)

Total Client Assets ($BN)

Book Value Per Share

(2)

CAGR: 37%

Stifel Financial Results

Three months ended September 30, 2014

(1)

(2)

(2)

26

(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 September 30, 2013 and June 30, 2014 are Core (non-GAAP).

($ in thousands, except per share amounts)

Non-GAAP

Non-Core

GAAP

9/30/13

% Change

6/30/14

% Change

Total revenues

536,241

$       

(1,559)

$          

534,682

$       

491,101

$       

9.2%

570,543

$    

(6.0%)

Interest expense

11,516

           

(289)

                 

11,227

           

11,467

           

0.4%

9,048

           

27.3%

Net revenues

524,725

         

(1,270)

            

523,455

         

479,634

         

9.4%

561,495

      

(6.5%)

Compensation and benefits

324,193

         

7,247

              

331,440

         

297,374

         

9.0%

353,754

      

(8.4%)

Non-comp operating expenses

122,501

         

3,748

              

126,249

         

116,817

         

4.9%

122,811

      

(0.3%)

Total non-interest expenses

446,694

         

10,995

           

457,689

         

414,191

         

7.8%

476,565

      

(6.3%)

Income from continuing operations before income taxes

78,031

           

(12,265)

          

65,766

           

65,443

           

19.2%

84,930

        

(8.1%)

Provision for income taxes

29,333

           

(3,660)

            

25,673

           

25,794

           

13.7%

33,664

        

(12.9%)

Net income from continuing operations

48,698

$         

(8,605)

$          

40,093

$         

39,649

$         

22.8%

51,266

$      

(5.0%)

Discontinued operations:

Loss from discontinued operations, net of tax

-

                   

(190)

                 

(190)

                

-

                   

-

               

Net income

48,698

$         

(8,795)

$          

39,903

$         

39,649

$         

22.8%

51,266

$      

(5.0%)

Earnings per diluted common share:

Income from continuing operations

0.64

$              

(0.12)

$            

0.52

$              

0.53

$              

20.8%

0.68

$           

(5.9%)

Loss from discontinued operations

-

                   

-

                   

-

                   

-

                   

-

               

Earnings per diluted common share

0.64

$              

(0.12)

$            

0.52

$              

0.53

$              

20.8%

0.68

$           

(5.9%)

Weighted average number of shares outstanding:

Diluted

76,681

75,191

2.0%

75,641

1.4%

Ratios to net revenues:

Compensation and benefits

61.8%

63.3%

62.0%

63.0%

Non-comp operating expenses

23.3%

24.2%

24.4%

21.9%

Income from continuing operations before income taxes

14.9%

12.6%

13.6%

15.1%

Three Months Ended September 30, 2014

Three Months Ended

($ in thousands, except per share amounts)

Non-GAAP

Non-Core

GAAP

9/30/13

% Change

Total revenues

1,664,072

$   

(5,023)

$          

1,659,049

$   

1,448,302

$   

14.9%

Interest expense

29,417

           

(716)

                 

28,701

           

34,642

           

(15.1%)

Net revenues

1,634,655

     

(4,307)

            

1,630,348

     

1,413,660

     

15.6%

Compensation and benefits

1,022,434

     

11,044

           

1,033,478

     

889,728

         

14.9%

Non-comp operating expenses

364,688

         

10,765

           

375,453

         

319,275

         

14.2%

Total non-interest expenses

1,387,122

     

21,809

           

1,408,931

     

1,209,003

     

14.7%

Income from continuing operations before income taxes

247,533

         

(26,116)

          

221,417

         

204,657

         

21.0%

Provision for income taxes

95,541

           

(7,767)

            

87,774

           

79,817

           

19.7%

Net income from continuing operations

151,992

$       

(18,349)

$       

133,643

$       

124,840

$       

21.7%

Discontinued operations:

Loss from discontinued operations, net

-

                   

(2,757)

            

(2,757)

            

Net income

151,992

$       

(21,106)

$       

130,886

$       

124,840

$       

21.7%

Earnings per diluted common share:

Income from continuing operations

2.00

$              

(0.24)

$            

1.76

$              

1.71

$              

17.0%

Loss from discontinued operations, net

-

                   

(0.04)

              

(0.04)

              

-

                   

Earnings per diluted common share

2.00

$              

(0.28)

$            

1.72

$              

1.71

$              

17.0%

Weighted average number of shares outstanding:

Diluted

76,011

72,851

4.3%

Ratios to net revenues:

Compensation and benefits

62.5%

63.4%

62.9%

Non-comp operating expenses

22.4%

23.0%

22.6%

Income from continuing operations before income taxes

15.1%

13.6%

14.5%

Nine Months Ended September 30, 2014

Nine Months Ended

Stifel Financial Results

(1)

(2)

27

(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

nine

months

ended

September

30,

are

Core

(non-GAAP).

Nine months ended September 30, 2014

Three Months Ended

Estimate

($ in thousands)

3/31/14

6/30/14

9/30/14

12/31/14

Acquisitions

Acacia Federal Savings Bank

1,132

$      

2,259

$      

1,227

$      

-

$           

De La Rosa & Co., Inc.

130

            

765

            

164

            

-

             

Keefe, Bruyette & Woods, Inc.

709

            

480

            

23

              

-

             

Knight Fixed Income

1,477

         

94

              

9

                 

-

             

Miller Buckfire & Co., LLC

1,172

         

1,233

         

1,182

         

1,200

         

Oriel Securities Holding Limited

-

             

557

            

7,415

         

5,000

         

Ziegler Capital Management

4

                 

11

              

229

            

-

             

Intangible amortization

1,820

         

1,680

         

1,643

         

1,800

         

6,444

         

7,079

         

11,892

      

8,000

         

Legg Mason Invesment Counsel

-

             

328

            

373

           

TBD

Total Deal Costs (Pre-tax)

6,444

$      

7,407

$      

12,265

$    

8,000

$      

Discontinued Operations, net

(591)

$        

(1,976)

$     

(190)

$        

(200)

$        

Actual

Non-Core Deal Costs

28

29

Sources of Revenues

($ in thousands)

9/30/14

9/30/13

%

Change

6/30/14

%

Change

9/30/14

9/30/13

%

Change

Commissions

151,621

$   

145,837

$   

4.0%

152,712

$       

(0.7%)

463,749

$     

446,498

$     

3.9%

Principal transactions

109,378

     

122,583

     

(10.8%)

125,676

         

(13.0%)

361,515

       

341,153

       

6.0%

Brokerage revenues

260,999

     

268,420

     

(2.8%)

278,388

         

(6.2%)

825,264

       

787,651

       

4.8%

Capital raising

69,208

       

53,665

       

29.0%

81,159

           

(14.7%)

223,898

       

175,252

       

27.8%

Advisory

50,939

       

39,186

       

30.0%

60,356

           

(15.6%)

170,068

       

113,947

       

49.3%

Investment banking

120,147

     

92,851

       

29.4%

141,515

         

(15.1%)

393,966

       

289,199

       

36.2%

Asset mgt and service fees

96,638

       

76,710

       

26.0%

94,231

           

2.6%

280,039

       

221,711

       

26.3%

Other

4,803

          

13,063

       

(63.2%)

8,742

              

(45.1%)

18,745

         

45,269

         

(58.6%)

    Total operating revenues

482,587

     

451,044

     

7.0%

522,876

         

(7.7%)

1,518,014

   

1,343,830

   

13.0%

Interest revenue

52,096

       

39,130

       

33.1%

46,113

           

13.0%

141,035

       

101,829

       

38.5%

    Total revenues

534,683

     

490,174

     

9.1%

568,989

         

(6.0%)

1,659,049

   

1,445,659

   

14.8%

Interest expense

11,228

       

11,535

       

(2.7%)

8,842

              

27.0%

28,701

         

34,738

         

(17.4%)

    Net revenues

523,455

$   

478,639

$   

9.4%

560,147

$       

(6.6%)

1,630,348

$ 

1,410,921

$ 

15.6%

Three Months Ended

Nine Months Ended

30

Brokerage & Investment Banking Revenues

($ in thousands)

9/30/14

9/30/13

% Change

6/30/14

% Change

9/30/14

9/30/13

% Change

Global Wealth Management

159,372

$  

158,085

$  

0.8%

161,780

$  

(1.5%)

482,657

$  

477,367

$  

1.1%

Institutional Group

Equity brokerage

58,198

      

58,677

      

(0.8%)

62,087

      

(6.3%)

186,053

    

172,187

    

8.1%

Fixed income brokerage

43,429

      

51,658

      

(15.9%)

54,520

      

(20.3%)

156,553

    

138,097

    

13.4%

Total Institutional Group

101,627

    

110,335

    

(7.9%)

116,607

    

(12.8%)

342,606

    

310,284

    

10.4%

Total brokerage revenues

260,999

    

268,420

    

(2.8%)

278,387

    

(6.2%)

825,263

    

787,651

    

4.8%

Investment Banking:

Capital raising

Equity

44,068

      

38,653

      

14.0%

60,901

      

(27.6%)

158,037

    

126,198

    

25.2%

Fixed income

25,141

      

15,231

      

65.1%

20,258

      

24.1%

65,862

      

48,838

      

34.9%

Total capital raising

69,209

      

53,884

      

28.4%

81,159

      

(14.7%)

223,899

    

175,036

    

27.9%

Advisory fees

50,938

      

38,967

      

30.7%

60,356

      

(15.6%)

170,067

    

114,163

    

49.0%

Total Investment banking

120,147

    

92,851

      

29.4%

141,515

    

(15.1%)

393,966

    

289,199

    

36.2%

Three Months Ended

Nine Months Ended

Core Non-Interest Expenses

31

(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.

Three months ended September 30, 2014

($ in thousands)

9/30/14

(1)

9/30/13

% Change

6/30/14

% Change

9/30/14

(1)

9/30/13

6/30/14

Net revenues

524,725

$     

479,634

$     

9.4%

561,495

$     

(6.5%)

100.0%

100.0%

100.0%

Compensation and benefits

297,340

       

275,503

       

7.9%

328,380

       

(9.5%)

56.7%

57.4%

58.5%

Transitional pay

26,853

         

21,871

         

22.8%

25,374

         

5.8%

5.1%

4.6%

4.5%

Total compensation and benefits

324,193

       

297,374

       

9.0%

353,754

       

(8.4%)

61.8%

62.0%

63.0%

Occupancy and equipment rental

40,421

         

39,856

         

1.4%

40,493

         

(0.2%)

7.7%

8.3%

7.2%

Communication and office supplies

27,448

         

25,105

         

9.3%

25,691

         

6.8%

5.2%

5.2%

4.6%

Commissions and floor brokerage

9,971

           

9,775

           

2.0%

9,248

           

7.8%

1.9%

2.0%

1.6%

Other operating expenses

44,661

         

42,081

         

6.1%

47,379

         

(5.7%)

8.5%

8.8%

8.5%

Total non-comp operating expenses

122,501

       

116,817

       

4.9%

122,811

       

(0.3%)

23.3%

24.4%

21.9%

Total non-interest expense

446,694

       

414,191

       

7.8%

476,565

       

(6.3%)

85.1%

86.4%

84.9%

Income from continuing operations before income taxes

78,031

         

65,443

         

19.2%

84,930

         

(8.1%)

14.9%

13.6%

15.1%

Provision for income taxes

29,333

         

25,794

         

13.7%

33,664

         

(12.9%)

5.6%

5.4%

6.0%

Non-GAAP net income from continuing operations

48,698

$       

39,649

$       

22.8%

51,266

$       

(5.0%)

9.3%

8.3%

9.1%

Non-core expenses (after-tax)

(8,605)

35,280

             

(5,689)

              

GAAP net income from continuing operations

40,093

$       

74,929

$       

45,577

$       

Three Months Ended

% of Net revenues

(2)

Core Non-Interest Expenses

32

(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.

Nine months ended September 30, 2014

($ in thousands)

9/30/14

(1)

9/30/13

% Change

9/30/14

(1)

9/30/13

Net revenues

1,634,655

$  

1,413,660

$  

15.6%

100.0%

100.0%

Compensation and benefits

946,755

       

826,314

       

14.6%

57.9%

58.6%

Transitional pay

(2)

75,679

         

63,414

         

19.3%

4.6%

4.5%

Total compensation and benefits

1,022,434

    

889,728

       

14.9%

62.5%

62.9%

Occupancy and equipment rental

120,484

       

108,596

       

10.9%

7.4%

7.7%

Communication and office supplies

77,940

         

70,565

         

10.5%

4.8%

5.0%

Commissions and floor brokerage

28,247

         

27,599

         

2.3%

1.7%

2.0%

Other operating expenses

138,017

       

112,515

       

22.7%

8.4%

8.1%

Total non-comp operating expenses

364,688

       

319,275

       

14.2%

22.3%

22.6%

Total non-interest expense

1,387,122

    

1,209,003

    

14.7%

84.9%

85.5%

Income from continuing operations before income taxes

247,533

       

204,657

       

21.0%

15.1%

14.5%

Provision for income taxes

95,541

         

79,817

         

19.7%

5.8%

5.6%

Non-GAAP net income from continuing operations

151,992

$     

124,840

$     

21.7%

9.3%

8.8%

Non-core expenses (after-tax)

(18,349)

(4,058)

              

GAAP net income from continuing operations

133,643

$     

120,782

$     

Nine Months Ended

% of Net revenues

Segment Comparison -

Core

33

Three and nine months ended September 30, 2014

(1)

Excludes the other segment.

($ in thousands)

9/30/14

9/30/13

% Change

6/30/14

%

Change

9/30/14

9/30/13

%

Change

Net revenues:

Global Wealth Management

317,241

$  

274,669

$  

15.5%

307,247

$  

3.3%

921,671

$   

824,344

$   

11.8%

Institutional Group

215,160

    

205,132

    

4.9%

255,712

    

(15.9%)

720,849

     

593,875

     

21.4%

Other

(7,676)

      

(167)

         

(4496.4%)

(1,464)

      

424.3%

(7,865)

        

(4,559)

        

(72.5%)

524,725

$  

479,634

$  

9.4%

561,495

$  

(6.5%)

1,634,655

$

1,413,660

$

15.6%

Operating contribution:

Global Wealth Management

94,026

$    

72,128

$    

30.4%

89,098

$    

5.5%

262,800

$   

220,551

$   

19.2%

Institutional Group

29,500

      

34,986

      

(15.7%)

42,690

      

(30.9%)

117,812

     

94,298

       

24.9%

Other

(45,495)

    

(41,671)

    

(9.2%)

(46,858)

    

2.9%

(133,079)

    

(110,192)

    

(20.8%)

78,031

$    

65,443

$    

19.2%

84,930

$    

(8.1%)

247,533

$   

204,657

$   

21.0%

Operating contribution

Global Wealth Management

29.6

          

26.3

          

29.0

          

28.5

           

26.8

           

Institutional Group

13.7

          

17.1

          

16.7

          

16.3

           

15.9

           

14.9

          

13.6

          

15.1

          

15.1

           

14.5

           

As a percentage of net revenues:

Three Months Ended

Nine Months Ended

(1)

Actual ($)

Yield (%)

Actual ($)

Yield (%)

Actual ($)

Yield (%)

Q314 v Q313

Q314 v Q214

Assets

Cash

142,444

          

0.39

                  

350,255

               

0.24

            

132,152

              

0.37

                  

(59.3)

                 

7.8

                    

Investment securities

2,720,860

       

2.39

                  

2,949,080

           

2.33

            

2,915,235

           

2.47

                  

(7.7)

                   

(6.7)

                   

Bank loans

1,988,076

       

4.82

                  

1,136,590

           

2.95

            

1,893,330

           

3.38

                  

74.9

                  

5.0

                    

Total interest earning assets

4,851,380

       

3.24

                  

4,435,925

           

2.41

            

4,940,717

           

2.73

                  

9.4

                    

(1.8)

                   

Other assets (non-interest earning)

109,192

          

111,146

               

109,319

              

(1.8)

                   

(0.1)

                   

Total assets

4,960,572

       

4,547,071

           

5,050,036

           

9.1

                    

(1.8)

                   

Liabilities

Deposits

4,552,522

       

0.15

                  

4,228,405

           

0.25

            

4,653,656

           

0.14

                  

7.7

                    

(2.2)

                   

Other liabilities (non-interest bearing)

18,728

            

25,335

                  

26,182

                 

(26.1)

                 

(28.5)

                 

Total liabilites

4,571,250

       

4,253,740

           

4,679,838

           

7.5

                    

(2.3)

                   

Net interest margin

3.10

                  

2.17

            

2.59

                  

Allowance for loan losses

18,996

$          

13,233

$               

17,104

$              

43.6

                  

11.1

                  

Allowance as a percentage of loans

1.18

                  

%

1.23

                       

%

0.97

                      

%

Non-performing assets as a percentage of total assets

0.07

                  

%

0.32

                       

%

0.10

                      

%

% Change

As of 9/30/14

As of 9/30/13

As of 6/30/14

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.

Stifel Bank & Trust

An Operating Unit of GWM

34

(1)

(2)

($ in thousands)

Total Assets

9,326,117

$  

Stockholders' Equity

2,238,549

$  

6.70% senior notes, due 2022

175,000

$     

5.375% senior notes, due 2022

150,000

       

4.250% senior notes, due 2024

300,000

       

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

82,500

         

Total Capitalization

2,946,049

$  

Ratios:

Debt to Equity

18.2%

Tier 1 Leverage Ratio

16.0%

Tier 1 Risk Based Capital Ratio

27.9%

(1)

Debt to equity ratio includes the debentures to Stifel Financial

Capital Trusts ($82.5m) and Senior Notes ($625.0m) divided by stockholders’

equity.

As of September 30, 2014

Capital Structure

35

(1)