GlobeNewswire Inc | Jul 29, 2020 06:00AM EDT

July 29, 2020

-- Net revenues of $895.8 million, increased 11.9% with the year-ago quarter, were the Companys third highest quarterly net revenues. -- Record Institutional Group net revenues and fixed income brokerage revenues. -- Net income available to common shareholders of $103.0 million, or $1.39 per diluted common share. -- Non-GAAP net income available to common shareholders of $115.3 million, or $1.55 per diluted common share. -- Annualized return on average tangible common shareholders equity (1) was 20.7%. -- Non-GAAP annualized return on average tangible common shareholders equity (1) was 23.2%.

ST. LOUIS, July 29, 2020 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net income available to common shareholders of $103.0 million, or $1.39 per diluted common share on net revenues of $895.8 million for the three months ended June 30, 2020, compared with net income available to common shareholders of $103.8 million, or $1.31 per diluted common share, on net revenues of $800.8 million for the second quarter of 2019.

For the three months ended June 30, 2020, the Company reported non-GAAP net income available to common shareholders of $115.3 million, or $1.55 per diluted common share. The Companys reported GAAP net income for the three months ended June 30, 2020 was primarily impacted by merger-related expenses. Details discussed below and in the Non-GAAP Financial Matters section.

Chairmans Comments

The benefits of the investments we have made in our business were again evident in our second quarter results. Net revenue and earnings per share were the third highest in our history. Our Institutional Group had a record quarter led by record fixed income brokerage revenue as well as strong investment banking results primarily from robust capital raising activity in both fixed income and equity. This helped to counter the impact of the market sell off in the first quarter and the zero rate environment had on revenue lines such as asset management and net interest income, respectively. In terms of the future, I remain cautiously optimistic. We enter the third quarter, with a strong and liquid balance sheet, our strongest capital ratios in nearly four years, and a solid and improving recruiting pipeline. While the economic outlook for the second half of the year remains unclear, I believe that the performance of our diversified financial services model will remain strong, stated Ronald J. Kruszewski, Chairman and Chief Executive Officer of Stifel.

Financial Highlights Three Months Ended (Unaudited)($ in 000s, except GAAP 6/30/ GAAP 6/30/ % GAAP 3/31/ % Non-GAAP ^ Non-GAAP ^ %per share data) 20 19 Change 20 Change (2) 6/30/ (2) 6/30/ Change 20 19Net revenues $ 895,817 $ 800,787 11.9 $ 913,034 (1.9 ) $ 895,817 $ 800,787 11.9 Net incomeapplicable to Stifel $ 107,887 $ 109,085 (1.1 ) $ 86,589 24.6 $ 120,178 $ 116,659 3.0 Financial Corp.Preferred dividends 4,843 5,288 (8.4 ) 4,844 (0.0 ) 4,843 5,288 (8.4 )Net income availableto common $ 103,044 $ 103,797 (0.7 ) $ 81,745 26.1 $ 115,335 $ 111,371 3.6 shareholdersEarnings per diluted $ 1.45 $ 1.38 5.1 $ 1.13 28.3 $ 1.62 $ 1.48 9.5 common shareEarnings per dilutedcommon share $ 1.39 $ 1.31 6.1 $ 1.07 29.9 $ 1.55 $ 1.41 9.9 available to commonshareholdersCompensation ratio 61.1 % 58.3 % 63.2 % 60.0 % 57.9 % Non-compensation 22.9 % 23.2 % 24.2 % 22.2 % 22.3 % ratioPre-tax operating 16.0 % 18.5 % 12.6 % 17.8 % 19.8 % margin ^(3)

For the six months ended June 30, 2020, the Company reported net income available to common shareholders of $184.8 million, or $2.44 per diluted common share on record net revenues of $1.8 billion, compared with net income available to common shareholders of $200.7 million, or $2.53 per diluted common share, on net revenues of $1.6 billion for the six months ended June 30, 2019.

For the six months ended June 30, 2020, the Company reported non-GAAP net income available to common shareholders of $207.3 million, or $2.74 per diluted common share.

FinancialHighlights Six Months Ended (Unaudited)($ in 000s, % Non-GAAP ^ Non-GAAP ^ %except per share GAAP 6/30/20 GAAP 6/30/19 Change (2) 6/30/20 (2) 6/30/19 Change data)Net revenues $ 1,808,851 $ 1,571,207 15.1 $ 1,809,030 $ 1,571,207 15.1 Net incomeapplicable to $ 194,476 $ 208,292 (6.6 ) $ 216,955 $ 223,523 (2.9 )Stifel FinancialCorp.Preferred 9,687 7,632 26.9 9,687 7,632 26.9 dividendsNet incomeavailable to $ 184,789 $ 200,660 (7.9 ) $ 207,268 $ 215,891 (4.0 )commonshareholdersEarnings perdiluted common $ 2.57 $ 2.63 (2.3 ) $ 2.87 $ 2.82 1.8 shareEarnings perdiluted commonshare available $ 2.44 $ 2.53 (3.6 ) $ 2.74 $ 2.73 0.4 to commonshareholdersCompensation 62.2 % 58.9 % 61.3 % 58.4 % ratioNon-compensation 23.5 % 22.9 % 22.8 % 22.2 % ratioPre-taxoperating margin 14.3 % 18.2 % 15.9 % 19.4 % ^(4)

Net Revenues

Net revenues were $895.8 million for the second quarter of 2020, an 11.9% increase from the second quarter of 2019 and a 1.9% decrease from the first quarter of 2020. Net revenues, compared with the second quarter of 2019, reflected significantly higher brokerage revenues, increased capital raising revenues, and advisory fee revenues, partially offset by lower net interest income and asset management and service fees. Net revenues, compared with the first quarter of 2020, reflected increased advisory fee revenues, principal transaction fee revenues, and capital raising revenues, partially offset by lower net interest income, asset management and service fees, and commission revenues.

The operating environment continued to be impacted by the spread of the COVID-19 virus which caused a sharp contraction in global economic activity and increased market volatility. Economic indicators generally improved as the quarter progressed, following significant declines in March and April, as economies began to reopen and central banks, along with governments, continued to implement monetary easing measures and provide fiscal stimulus to support the economy. These contributed to higher global equity prices and tighter credit spreads compared with the end of the first quarter of 2020.

Brokerage Revenues

Brokerage revenues, defined as commissions and principal transactions, were $343.0 million, a 31.2% increase compared with the second quarter of 2019 and a 1.9% decrease compared with the first quarter of 2020.

Three Months Ended ($ in 000s) 6/30/20 6/30/19 % Change 3/31/20 % Change Global Wealth $ 159,123 $ 162,388 (2.0 ) $ 179,879 (11.5 )ManagementInstitutional brokerage:Equity capital 63,193 40,670 55.4 70,195 (10.0 )marketsFixed income capital 120,731 58,387 106.8 99,688 21.1 marketsTotal institutional 183,924 99,057 85.7 169,883 8.3 brokerageTotal brokerage $ 343,047 $ 261,445 31.2 $ 349,762 (1.9 )revenues ^(5)

-- Global Wealth Management brokerage revenues were $159.1 million, a 2.0% decrease compared with the second quarter of 2019 and an 11.5% decrease compared with the first quarter of 2020. -- Institutional equity brokerage revenues were $63.2 million, a 55.4% increase compared with the second quarter of 2019 and a 10.0% decrease compared with the first quarter of 2020. -- Institutional fixed income brokerage revenues were $120.7 million, a 106.8% increase compared with the second quarter of 2019 and a 21.1% increase compared with the first quarter of 2020.

Investment Banking Revenues

Investment banking revenues were $217.0 million, a 20.8% increase compared with the second quarter of 2019 and a 20.9% increase compared with the first quarter of 2020.

Three Months Ended ($ in 000s) 6/30/20 6/30/19 % Change 3/31/20 % Change Capital raising: Global Wealth $ 8,016 $ 10,559 (24.1 ) $ 10,314 (22.3 )Management Equity capital markets 63,277 59,156 7.0 60,195 5.1 Fixed income capital 47,904 26,997 77.4 32,887 45.7 marketsInstitutional Group 111,181 86,153 29.1 93,082 19.4 Total capital raising ^ 119,197 96,712 23.2 103,396 15.3 (5)Advisory fees ^(5) 97,838 82,905 18.0 76,072 28.6 Total investment $ 217,035 $ 179,617 20.8 $ 179,468 20.9 banking

-- Global Wealth Management capital raising revenues were $8.0 million, a 24.1% decrease compared with the second quarter of 2019 and a 22.3% decrease compared with the first quarter of 2020. -- Institutional equity capital raising revenues were $63.3 million, a 7.0% increase compared with the second quarter of 2019 and a 5.1% increase compared with the first quarter of 2020. -- Institutional fixed income capital raising revenues were $47.9 million, a 77.4% increase compared with the second quarter of 2019 and a 45.7% increase compared with the first quarter of 2020. -- Advisory fee revenues were $97.8 million, an 18.0% increase compared with the second quarter of 2019 and a 28.6% increase compared with the first quarter of 2020.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were $198.9 million, a 5.8% decrease compared with the second quarter of 2019 and a 16.3% decrease compared with the first quarter of 2020. The decrease from the comparative period in 2019 is primarily attributable to lower asset values at the beginning of the second quarter of 2020, partially offset by fee-based asset flows. See Asset Management and Service Fee Break-down table.

Net Interest Income

Net interest income of $115.3 million, a 14.6% decrease compared with the second quarter of 2019 and a 15.7% decrease compared with the first quarter of 2020. See Net Interest Income Analysis table.

-- Interest income was $128.4 million, a 31.7% decrease compared with the second quarter of 2019 and a 20.4% decrease compared with the first quarter of 2020. -- Interest expense was $13.1 million, a 75.3% decrease compared with the second quarter of 2019 and a 46.3% decrease compared with the first quarter of 2020.

Compensation and Benefits Expenses

For the quarter ended June 30, 2020, compensation and benefits expenses were $547.2 million, which included $9.7 million of merger-related and severance expenses (non-GAAP adjustments). This compares with $466.9 million in the second quarter of 2019 and $577.2 million in the first quarter of 2020. Excluding the non-GAAP adjustments, compensation and benefits as a percentage of net revenues were 60.0% in the second quarter of 2020 (non-GAAP measure).

The increase in compensation and benefits expenses, compared with the second quarter of 2019, is primarily attributable to higher volume and revenue-related expense and investments.

Three Months Ended Six Months Ended ($ in 000s) 6/30/20 6/30/19 6/30/20 6/30/19 GAAPcompensation $ 547,174 $ 466,861 $ 1,124,353 $ 924,975 and benefitsAs apercentage of 61.1 % 58.3 % 62.2 % 58.9 %net revenuesNon-GAAPadjustments:^ (6)Merger-related (9,710 ) (3,304 ) (16,137 ) (7,236 )and severanceNon-GAAPcompensation $ 537,464 $ 463,557 $ 1,108,216 $ 917,739 and benefitsAs apercentage of 60.0 % 57.9 % 61.3 % 58.4 %non-GAAP netrevenues

Non-Compensation Operating Expenses

For the quarter ended June 30, 2020, non-compensation operating expenses were $205.7 million, which included $6.5 million of merger-related expenses (non-GAAP adjustments). This compares with $185.9 million in the second quarter of 2019 and $220.7 million in the first quarter of 2020. Excluding the non-GAAP adjustments, non-compensation operating expenses as a percentage of net revenues for the quarter ended June 30, 2020 were 22.2% (non-GAAP measure).

The increase in non-compensation operating expenses, compared with the second quarter of 2019, is primarily attributable to the increase in the provision for credit losses as a result of the impact of COVID-19 on the broader economic environment, volume-related expenses, net provisions for regulatory matters, and professional fees, partially offset by decreases in travel and conference-related expenses as a result of COVID-19. In addition, the second quarter of 2020 included provisions related to growth in loans and the impact of accounting for credit losses under the CECL standard (7).

Three Months Ended Six Months Ended ($ in 000s) 6/30/20 6/30/19 6/30/20 6/30/19 GAAP non-compensation $ 205,683 $ 185,944 $ 426,432 $ 360,441 expensesAs a percentage of net 22.9 % 23.2 % 23.5 % 22.9 %revenuesNon-GAAP adjustments:^ (6)Merger-related (6,549 ) (3,417 ) (13,453 ) (7,676 )Litigation-related ? (3,507 ) ? (3,507 ) (6,549 ) (6,924 ) (13,453 ) (11,183 )Non-GAAPnon-compensation $ 199,134 $ 179,020 $ 412,979 $ 349,258 expensesAs a percentage of 22.2 % 22.3 % 22.8 % 22.2 %non-GAAP net revenues

Provision for Income Taxes

The GAAP effective income tax rate for the quarter ended June 30, 2020 was 24.5%. This compares with an effective income tax rate of 25.9% for the second quarter of 2019 and 24.8% for the first quarter of 2020. The adjusted non-GAAP effective income tax rate for the quarter ended June 30, 2020 was 24.5%.

Three Months Ended Six Months Ended ($ in 000s) 6/30/20 6/30/19 6/30/20 6/30/19 GAAP provision for $ 35,073 $ 38,225 $ 63,590 $ 76,595 income taxesGAAP effective tax 24.5 % 25.9 % 24.6 % 26.9 %rateNon-GAAP adjustments:^ (6)Merger-related,litigation-related, 3,986 2,752 7,286 4,955 and severanceOther (18 ) (98 ) 4 (1,767 ) 3,968 2,654 7,290 3,188 Non-GAAP provision $ 39,041 $ 40,879 $ 70,880 $ 79,783 for income taxesNon-GAAP effective 24.5 % 25.9 % 24.6 % 26.3 %tax rate

Conference Call Information

Stifel Financial Corp. will host its first quarter 2020 financial results conference call on Wednesday, July 29, 2020, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.

All interested parties are invited to listen to Stifels Chairman and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID 2565812. A live audio webcast of the call, as well as a presentation highlighting the Companys results, will be available through the Companys 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. Stifels broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Century Securities Associates, Inc. The Companys 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 and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Companys website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.

Cautionary Note Regarding 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. For information about the risks and important factors that could affect the Companys future results, financial condition and liquidity, see Risk Factors in Part II, Item 1A of the Companys Quarterly Report on Form 10-Q for the three months ended March 31, 2020 and Risk Factors in Part I, Item 1A of the Companys Annual Report on Form 10-K for the year ended December 31, 2019. Forward-looking statements speak only as to the date they are made. The Company 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.

Statements about the effects of the COVID-19 pandemic on the Companys business, results, financial position and liquidity may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected.

Summary Results of Operations (Unaudited) Three Months Ended Six Months Ended ($ in 000s, % % %except per 6/30/20 6/30/19 Change 3/31/20 Change 6/30/20 6/30/19 Change share amounts)Revenues: Commissions $ 177,028 $ 164,981 7.3 $ 211,098 (16.1 ) $ 388,126 $ 320,430 21.1 Principal 166,017 96,464 72.1 138,666 19.7 304,683 200,496 52.0 transactionsBrokerage 343,045 261,445 31.2 349,764 (1.9 ) 692,809 520,926 33.0 revenues Advisory fees 97,838 82,911 18.0 76,072 28.6 173,910 187,801 (7.4 )Capital raising 119,197 96,706 23.3 103,396 15.3 222,593 153,656 44.9 Investment 217,035 179,617 20.8 179,468 20.9 396,503 341,457 16.1 bankingAssetmanagement and 198,939 211,171 (5.8 ) 237,775 (16.3 ) 436,714 406,438 7.4 service feesOther income 21,514 13,505 59.3 9,207 133.7 30,721 25,714 19.5 Operating 780,533 665,738 17.2 776,214 0.6 1,556,747 1,294,535 20.3 revenuesInterest 128,368 187,940 (31.7 ) 161,177 (20.4 ) 289,545 379,011 (23.6 )revenueTotal revenues 908,901 853,678 6.5 937,391 (3.0 ) 1,846,292 1,673,546 10.3 Interest 13,084 52,891 (75.3 ) 24,357 (46.3 ) 37,441 102,339 (63.4 )expenseNet revenues 895,817 800,787 11.9 913,034 (1.9 ) 1,808,851 1,571,207 15.1 Non-interest expenses:Compensation 547,174 466,861 17.2 577,179 (5.2 ) 1,124,353 924,975 21.6 and benefitsOccupancy andequipment 66,264 61,055 8.5 66,073 0.3 132,337 119,917 10.4 rentalCommunicationand office 43,046 35,069 22.7 41,124 4.7 84,170 70,766 18.9 suppliesCommissions and 15,177 11,008 37.9 14,842 2.3 30,019 21,964 36.7 floor brokerageProvision for 19,210 2,353 716.4 16,068 19.6 35,278 4,636 661.0 credit lossesOther operating 61,986 76,459 (18.9 ) 82,642 (25.0 ) 144,628 143,158 1.0 expensesTotalnon-interest 752,857 652,805 15.3 797,928 (5.6 ) 1,550,785 1,285,416 20.6 expensesIncome before 142,960 147,982 (3.4 ) 115,106 24.2 258,066 285,791 (9.7 )income taxesProvision for 35,073 38,225 (8.2 ) 28,517 23.0 63,590 76,595 (17.0 )income taxesNet income 107,887 109,757 (1.7 ) 86,589 24.6 194,476 209,196 (7.0 )Net incomeapplicable to ? 672 n/m ? ? ? 904 n/m non-controllinginterestsNet incomeapplicable to 107,887 109,085 (1.1 ) 86,589 24.6 194,476 208,292 (6.6 )StifelFinancial Corp.Preferred 4,843 5,288 (8.4 ) 4,844 (0.0 ) 9,687 7,632 26.9 dividendsNet incomeavailable to $ 103,044 $ 103,797 (0.7 ) $ 81,745 26.1 $ 184,789 $ 200,660 (7.9 )commonshareholdersEarnings per common share:Basic $ 1.46 $ 1.43 2.1 $ 1.15 27.0 $ 2.61 $ 2.74 (4.7 )Diluted $ 1.39 $ 1.31 6.1 $ 1.07 29.9 $ 2.44 $ 2.53 (3.6 ) Cash dividendsdeclared per $ 0.17 $ 0.15 13.3 $ 0.17 ? $ 0.34 $ 0.30 13.3 common share Weightedaverage numberof common sharesoutstanding:Basic 70,527 72,519 (2.7 ) 71,286 (1.1 ) 70,905 73,180 (3.1 )Diluted 74,387 79,079 (5.9 ) 76,619 (2.9 ) 75,651 79,160 (4.4 )

Summary Segment Results (Unaudited) Three Months Ended Six Months Ended ($ in 000s) 6/30/20 6/30/19 % Change 3/31/20 % Change 6/30/20 6/30/19 % ChangeNet revenues: Global Wealth $ 505,782 $ 532,433 (5.0 ) $ 582,956 (13.2 ) $ 1,088,738 $ 1,043,043 4.4 ManagementInstitutional Group 398,096 270,602 47.1 332,238 19.8 730,334 531,888 37.3 Other (8,061 ) (2,248 ) n/m (2,160 ) n/m (10,221 ) (3,724 ) n/m Total net revenues $ 895,817 $ 800,787 11.9 $ 913,034 (1.9 ) $ 1,808,851 $ 1,571,207 15.1 Operating expenses: Global Wealth $ 349,457 $ 340,081 2.8 $ 388,789 (10.1 ) $ 738,246 $ 656,201 12.5 ManagementInstitutional Group 315,047 231,300 36.2 290,498 8.5 605,545 460,382 31.5 Other 88,353 81,424 8.5 118,641 (25.5 ) 206,994 168,833 22.6 Total operating $ 752,857 $ 652,805 15.3 $ 797,928 (5.6 ) $ 1,550,785 $ 1,285,416 20.6 expenses Operating contribution: Global Wealth $ 156,325 $ 192,352 (18.7 ) $ 194,167 (19.5 ) $ 350,492 $ 386,842 (9.4 )ManagementInstitutional Group 83,049 39,302 111.3 41,740 99.0 124,789 71,506 74.5 Other (96,414 ) (83,672 ) 15.2 (120,801 ) (20.2 ) (217,215 ) (172,557 ) 25.9 Income before income $ 142,960 $ 147,982 (3.4 ) $ 115,106 24.2 $ 258,066 $ 285,791 (9.7 )taxes As a percentage of net revenues:Compensation and benefitsGlobal Wealth 51.1 49.3 51.2 51.1 48.9 ManagementInstitutional Group 60.6 57.6 62.0 61.3 59.3 Non-comp. operating expensesGlobal Wealth 18.0 14.6 15.5 16.7 14.0 ManagementInstitutional Group 18.5 27.9 25.4 21.6 27.3 Income before income taxesGlobal Wealth 30.9 36.1 33.3 32.2 37.1 ManagementInstitutional Group 20.9 14.5 12.6 17.1 13.4 Consolidated pre-tax 16.0 18.5 12.6 14.3 18.2 margin

Financial metrics As of and For the Three Months Ended (unaudited):($ in 000s, exceptpercentages and per share 6/30/20 6/30/19 3/31/20 amounts)Total assets $ 25,624,225 $ 24,343,597 $ 25,896,006 Total Stifel Financial $ 3,884,060 $ 3,429,126 $ 3,470,326 shareholders' equityBook value per common share $ 48.84 $ 44.68 $ 46.13 ^(8)Return on common equity ^(9) 12.6 % 13.4 % 10.0 %Non-GAAP return on common 14.1 % 14.3 % 11.2 %equity ^(2) (9)Return on tangible common 20.7 % 21.1 % 16.6 %equity ^(1)Non-GAAP return on tangible 23.2 % 22.6 % 18.6 %common equity ^(1) (2)Tier 1 common capital ratio 15.3 % 15.6 % 14.3 %^(10)Tier 1 risk based capital 19.3 % 18.0 % 16.6 %ratio ^(10)Tier 1 leverage capital 11.0 % 10.0 % 9.6 %ratio ^(10)Pre-tax margin on net 16.0 % 18.5 % 12.6 %revenuesNon-GAAP pre-tax margin on 17.8 % 19.8 % 14.1 %net revenues ^(2) (3)Effective tax rate 24.5 % 25.9 % 24.8 %Non-GAAP effective tax rate 24.5 % 25.9 % 24.8 %^(2)

StatisticalInformation As of and For the Three Months Ended (unaudited):($ in 000s,except % %financial 6/30/20 6/30/19 Change 3/31/20 Change advisors andlocations)Financial 2,138 2,097 2.0 2,130 0.4 advisorsIndependent 94 96 (2.1 ) 94 ? contractorsTotalfinancial 2,232 2,193 1.8 2,224 0.4 advisorsLocations 447 413 8.2 447 ? Total client $ 306,235,000 $ 305,233,000 0.3 $ 276,627,000 10.7 assetsFee-based $ 106,218,000 $ 103,824,000 2.3 $ 93,633,000 13.4 client assetsClient moneymarket and $ 18,664,000 $ 13,674,000 36.5 $ 17,234,000 8.3 insuredproductSecured client $ 2,563,773 $ 3,251,723 (21.2 ) $ 3,148,790 (18.6 )lending ^(11)

Asset Management and Service Fee Break-down (unaudited) AssetManagementand Service Three Months Ended FeeRevenues:($ in 000s) 6/30/20 6/30/19 % Change 3/31/20 % Change PrivateClient $ 164,403 $ 164,554 (0.1 ) $ 193,260 (14.9 )Group ^(12)Asset 23,769 29,485 (19.4 ) 29,762 (20.1 )ManagementThird-partyBank Sweep 522 6,869 (92.4 ) 3,308 (84.2 )ProgramOther ^(13) 10,245 10,263 (0.2 ) 11,445 (10.5 )Total assetmanagementand service $ 198,939 $ 211,171 (5.8 ) $ 237,775 (16.3 )feerevenues Fee-based Three Months Ended Assets:($ in 6/30/20 6/30/19 % Change 3/31/20 % Change millions)PrivateClient $ 91,360 $ 80,983 12.8 $ 80,617 13.3 Group ^(12)Asset 25,706 33,156 (22.5 ) 22,752 13.0 ManagementElimination (10,848 ) (10,315 ) 5.2 (9,736 ) 11.4 ^(14)Totalfee-based $ 106,218 $ 103,824 2.3 $ 93,633 13.4 assets IndividualProgram $ 3,007 $ 1,459 106.1 $ 1,491 101.7 Banks ROA (bps) ^ (15)PrivateClient 81.6 89.5 83.9 Group ^(12)Asset 37.0 35.6 38.0 ManagementIndividualProgram 7.1 163.6 95.0 Banks

Consolidated Net Interest Income Analysis (Unaudited): Three Months Ended June 30, 2020 June 30, 2019 March 31, 2020 ($ in millions, Average Interest Average Average Interest Average Average Interest Averageexcept percentages) Balance Income/ Interest Balance Income/ Interest Balance Income/ Interest Expense Rate Expense Rate Expense RateInterest-earning assets:Cash and federal $ 1,674.0 $ 1.0 0.24 % $ 750.4 $ 4.3 2.31 % $ 931.8 $ 3.7 1.58 %funds soldFinancial instruments 761.7 2.9 1.50 1,320.5 6.4 1.94 1,076.6 4.6 1.70 ownedMargin balances 981.5 6.4 2.59 1,291.5 13.7 4.23 1,231.7 10.1 3.29 Investments: Asset-backed 4,842.0 32.6 2.70 4,508.4 46.0 4.08 4,538.5 37.0 3.26 securitiesMortgage-backed 877.2 4.6 2.09 1,470.9 8.6 2.33 1,094.2 6.0 2.18 securitiesCorporate fixed 648.9 4.2 2.59 915.0 6.9 3.02 732.8 5.0 2.76 income securitiesState and municipal 12.2 0.1 2.19 48.0 0.2 1.85 18.4 0.1 2.13 securitiesOther 5.3 ? 2.02 ? ? ? 3.9 ? 2.17 Total Investments 6,385.6 41.5 2.60 6,942.3 61.7 3.56 6,387.8 48.1 3.01 Loans: Commercial and 4,095.4 31.8 3.10 3,337.4 41.3 4.95 3,560.3 38.0 4.27 industrialResidential real 3,589.2 25.6 2.85 2,953.7 22.5 3.05 3,416.1 25.3 2.96 estateSecurities-based 1,789.2 9.9 2.22 1,916.3 20.2 4.21 2,063.8 16.5 3.19 loansCommercial real 402.6 4.0 3.98 354.3 5.0 5.63 445.0 5.8 5.22 estateLoans held for sale 486.7 3.3 2.68 178.6 1.8 4.02 374.5 4.0 4.26 Other 546.3 4.6 3.36 377.9 5.1 5.38 500.1 5.6 4.46 Total Loans 10,909.4 79.2 2.90 9,118.2 95.9 4.21 10,359.8 95.2 3.67 Otherinterest-bearing 476.3 (2.6 ) (2.15 ) 831.6 5.9 2.86 607.9 (0.5 ) (0.30 )assetsTotalinterest-earning 21,188.5 128.4 2.42 20,254.5 187.9 3.71 20,595.6 161.2 3.13 assets/interestincomeInterest-bearing liabilities:Short-term borrowings 11.4 0.1 2.83 29.8 0.2 3.16 91.3 0.2 0.88 Senior notes 1,195.0 13.1 4.38 1,016.2 11.1 4.38 1,017.1 11.2 4.40 Deposits 16,676.5 2.3 0.05 14,660.7 29.3 0.80 15,377.9 9.6 0.25 FHLB 250.8 0.7 1.09 550.2 2.9 2.12 590.5 2.4 1.59 Otherinterest-bearing 1,179.2 (3.1 ) (1.03 ) 1,764.4 9.4 2.10 1,628.1 1.0 0.26 liabilitiesTotalinterest-bearing $ 19,312.9 $ 13.1 0.27 % $ 18,021.3 $ 52.9 1.17 % $ 18,704.9 $ 24.4 0.52 %liabilities/interestexpenseNet interest income/ $ 115.3 2.18 % $ 135.0 2.67 % $ 136.8 2.66 %margin

Stifel Bancorp, Inc. ^(16) Net Interest Income Analysis (Unaudited): Three Months Ended June 30, 2020 June 30, 2019 March 31, 2020 ($ in millions, Average Interest Average Average Interest Average Average Interest Averageexcept percentages) Balance Income/ Interest Balance Income/ Interest Balance Income/ Interest Expense Rate Expense Rate Expense RateInterest-earning assets:Cash and federal $ 961.1 $ 0.3 0.13 % $ 330.6 $ 1.8 2.15 % $ 446.0 $ 1.2 1.10 %funds soldInvestments 6,385.6 41.5 2.60 6,942.3 61.7 3.56 6,387.8 48.1 3.01 Loans 10,909.4 79.2 2.90 9,118.2 95.9 4.21 10,359.8 95.2 3.67 Otherinterest-bearing 46.7 0.3 2.46 57.2 0.6 4.38 59.6 0.6 4.02 assetsTotalinterest-earning 18,302.8 121.3 2.65 16,448.3 160.0 3.89 17,253.2 145.1 3.36 assets/interestincomeInterest-bearing liabilities:Deposits 16,676.5 2.3 0.05 14,660.7 29.3 0.80 15,377.9 9.6 0.25 FHLB 250.8 0.7 1.09 550.2 2.9 2.12 590.5 2.4 1.59 Otherinterest-bearing 1.5 ? 6.71 1.7 0.1 6.73 1.6 ? 7.09 liabilitiesTotalinterest-bearing $ 16,928.8 3.0 0.07 % $ 15,212.6 32.3 0.85 % $ 15,970.0 12.0 0.30 %liabilities/interestexpenseNet interest income/ $ 118.3 2.59 % $ 127.7 3.11 % $ 133.1 3.09 %margin

Stifel Bancorp, Inc. ^(16) - a component of Global Wealth Management Selected operating Three Months Ended Six Months Ended data (unaudited):($ in 000s, except 6/30/20 6/30/19 % Change 3/31/20 % Change 6/30/20 6/30/19 % Change percentages)Net interest income $ 118,298 $ 127,714 (7.4 ) $ 133,131 (11.1 ) $ 251,429 $ 262,278 (4.1 )Credit loss 19,210 2,353 716.4 16,068 19.6 35,278 4,636 661.0 provisionCharge-offs 150 54 177.8 20 650.0 170 110 54.5 Net interest margin 2.59 % 3.11 % (52) bps 3.09 % (50) bps 2.83 % 3.14 % (31) bps

Financial Metrics As of (unaudited):($ in 000s, except 6/30/20 6/30/19 3/31/20 percentages)Total assets $ 18,123,326 $ 16,645,984 $ 18,442,914 Total shareholders' 1,378,096 1,236,318 1,224,307 equityTotal loans, net(includes loans 10,923,212 9,127,836 10,565,287 held for sale)Total deposits 16,302,281 14,901,061 16,880,933 Available-for-salesecurities, at fair 3,172,160 2,702,211 3,363,961 valueHeld-to-maturitysecurities, at 3,083,126 3,957,629 3,083,065 amortized costCommercial and 4,149,307 3,338,127 3,813,862 industrialResidential real 3,710,657 2,984,725 3,495,136 estateSecurities-based 1,716,786 1,962,528 1,945,371 loansCommercial real 406,788 367,283 399,732 estateLoans held for sale 474,899 163,511 570,787 Stifel Bank & Trust:Common equity tier1 capital ratio ^ 12.4 % 13.4 % 11.7 %(10)Tier 1 capital 12.4 % 13.4 % 11.7 %ratio ^(10)Total capital ratio 13.9 % 14.5 % 13.0 %^(10)Tier 1 leverage 7.2 % 7.2 % 7.1 %ratio ^(10)Stifel Bank: Common equity tier1 capital ratio ^ 18.8 % 17.7 % 15.6 %(10)Tier 1 capital 18.8 % 17.7 % 15.6 %ratio ^(10)Total capital ratio 20.1 % 18.9 % 16.5 %^(10)Tier 1 leverage 7.1 % 7.3 % 7.3 %ratio ^(10) Credit Metrics: Allowance for $ 139,949 $ 90,472 $ 121,017 credit lossesAllowance as apercentage of 1.32 % 1.00 % 1.20 %retained loansNet charge-offs asa percentage of 0.00 % 0.00 % 0.00 %average loansTotal nonperforming $ 14,602 $ 21,111 $ 14,616 assetsNonperformingassets as % of 0.08 % 0.13 % 0.08 %total assets

Global Wealth Management Summary Results of Operations (Unaudited) Three Months Ended Six Months Ended ($ in 000s) 6/30/20 6/30/19 % Change 3/31/20 % Change 6/30/20 6/30/19 % ChangeRevenues: Commissions $ 116,156 $ 120,284 (3.4 ) $ 136,897 (15.2 ) $ 253,053 $ 230,211 9.9 Principal 42,967 42,104 2.0 42,982 (0.0 ) 85,949 85,371 0.7 transactions Brokerage 159,123 162,388 (2.0 ) 179,879 (11.5 ) 339,002 315,582 7.4 revenues Asset management 198,921 211,156 (5.8 ) 237,760 (16.3 ) 436,681 406,409 7.4 and service feesNet interest 121,564 137,599 (11.7 ) 138,682 (12.3 ) 260,246 282,894 (8.0 )Investment 8,016 10,559 (24.1 ) 10,333 (22.4 ) 18,349 18,782 (2.3 )banking ^(17)Other income 18,158 10,731 69.2 16,302 11.4 34,460 19,376 77.8 Net revenues 505,782 532,433 (5.0 ) 582,956 (13.2 ) 1,088,738 1,043,043 4.4 Non-interest expenses:Compensation and 258,291 262,321 (1.5 ) 298,370 (13.4 ) 556,661 509,794 9.2 benefitsNon-compensationoperating 91,166 77,760 17.2 90,419 0.8 181,585 146,407 24.0 expensesTotalnon-interest 349,457 340,081 2.8 388,789 (10.1 ) 738,246 656,201 12.5 expensesIncome before $ 156,325 $ 192,352 (18.7 ) $ 194,167 (19.5 ) $ 350,492 $ 386,842 (9.4 )income taxes As a percentage of net revenues:Compensation and 51.1 49.3 51.2 51.1 48.9 benefitsNon-compensationoperating 18.0 14.6 15.5 16.7 14.0 expensesIncome before 30.9 36.1 33.3 32.2 37.1 income taxes

Institutional Group Summary Results of Operations (Unaudited) Three Months Ended Six Months Ended ($ in 000s) 6/30/20 6/30/19 % Change 3/31/20 % Change 6/30/20 6/30/19 % Change Revenues: Commissions $ 60,875 $ 44,697 36.2 $ 74,198 (18.0 ) $ 135,073 $ 90,219 49.7 Principal 123,049 54,360 126.4 95,685 28.6 218,734 115,125 90.0 transactionsBrokerage 183,924 99,057 85.7 169,883 8.3 353,807 205,344 72.3 revenuesAdvisory fees 97,838 82,905 18.0 76,053 28.6 173,891 187,800 (7.4 )Capital raising 111,181 86,153 29.1 93,082 19.4 204,263 134,875 51.4 Investment 209,019 169,058 23.6 169,135 23.6 378,154 322,675 17.2 bankingOther ^(18) 5,153 2,487 107.2 (6,780 ) (176.0 ) (1,627 ) 3,869 (142.1 )Net revenues 398,096 270,602 47.1 332,238 19.8 730,334 531,888 37.3 Non-interest expenses:Compensation and 241,420 155,779 55.0 205,988 17.2 447,408 315,190 41.9 benefitsNon-compensationoperating 73,627 75,521 (2.5 ) 84,510 (12.9 ) 158,137 145,192 8.9 expensesTotalnon-interest 315,047 231,300 36.2 290,498 8.5 605,545 460,382 31.5 expensesIncome before $ 83,049 $ 39,302 111.3 $ 41,740 99.0 $ 124,789 $ 71,506 74.5 income taxes As a percentage of net revenues:Compensation and 60.6 57.6 62.0 61.3 59.3 benefitsNon-compensationoperating 18.5 27.9 25.4 21.6 27.3 expensesIncome before 20.9 14.5 12.6 17.1 13.4 income taxes

Non-GAAP Financial Measures

The Company utilized certain non-GAAP calculations as additional measures to aid in understanding and analyzing the Companys financial results for the three months ended June 30, 2020, June 30, 2019, and March 31, 2020. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Companys 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 Companys 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 Companys current financial performance. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. These non-GAAP measures primarily exclude expenses which management believes are, in some instances, non-recurring and not representative of on-going business.

A limitation of utilizing these non-GAAP measures is that the GAAP accounting effects of these charges do, in fact, reflect the underlying financial results of the Companys business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the Company believes that GAAP measures and the same respective non-GAAP measures of the Companys financial performance should be considered together.

The following table provides details with respect to reconciling net income and earnings per diluted common share on a GAAP basis for the three and six months ended June 30, 2020 and 2019, and the three months ended March 31, 2020 to net income and earnings per diluted common share on a non-GAAP basis for the same period.

Three Months Ended Six Months Ended ($ in 000s) 6/30/20 6/30/19 3/31/20 6/30/20 6/30/19 GAAP net incomeapplicable to $ 107,887 $ 109,085 $ 86,589 $ 194,476 $ 208,292 Stifel FinancialCorp.Preferred dividend 4,843 5,288 4,844 9,687 7,632 Net incomeavailable to 103,044 103,797 81,745 184,789 200,660 commonshareholders Non-GAAP adjustments:Merger-related and 16,259 6,721 13,510 29,769 14,912 severance ^(19)Litigation-related ? 3,507 ? ? 3,507 ^(20)Provision for (3,968 ) (2,654 ) (3,322 ) (7,290 ) (3,188 )income taxes ^(21)Total non-GAAP 12,291 7,574 10,188 22,479 15,231 adjustmentsNon-GAAP netincome available $ 115,335 $ 111,371 $ 91,933 $ 207,268 $ 215,891 to commonshareholders Weighted averagediluted shares 74,387 79,079 76,619 75,651 79,160 outstanding GAAP earnings perdiluted common $ 1.45 $ 1.38 $ 1.13 $ 2.57 $ 2.63 shareNon-GAAP 0.17 0.10 0.13 0.30 0.19 adjustmentsNon-GAAP earningsper diluted common $ 1.62 $ 1.48 $ 1.26 $ 2.87 $ 2.82 share GAAP earnings perdiluted commonshare available to $ 1.39 $ 1.31 $ 1.07 $ 2.44 $ 2.53 commonshareholdersNon-GAAP 0.16 0.10 0.13 0.30 0.20 adjustmentsNon-GAAP earningsper diluted commonshare available to $ 1.55 $ 1.41 $ 1.20 $ 2.74 $ 2.73 commonshareholders

Footnotes

Annualized return on average tangible common shareholders? equity (?ROTE?) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders? equity or, in the case of non-GAAP ROTE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible shareholders? equity. Tangible(1) common shareholders? equity equals total Stifel Financial common shareholders? equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Deferred taxes on goodwill and tangible assets was $48.5 million, $41.6 million, and $47.2 million, as of June 30, 2020 and 2019, and March 31, 2020, respectively. Historical periods have been restated to conform with the current period presentation.(2) Reconciliations of the Company?s GAAP results to these non-GAAP measures are discussed within and under ?Non-GAAP Financial Measures.? Non-GAAP pre-tax margin for the three months ended June 30, 2020 of 17.8% is calculated by adding non-GAAP adjustments of $16.3 million to our GAAP(3) income before income taxes of $143.0 million and dividing it by non-GAAP net revenues for the quarter of $895.8 million. Reconciliations of the Company?s GAAP results to certain non-GAAP measures is discussed within and under ?Non-GAAP Financial Measures.? Non-GAAP pre-tax margin for the six months ended June 30, 2020 of 15.9% is calculated by adding non-GAAP adjustments of $29.8 million to our GAAP(4) income before income taxes of $258.1 million and dividing it by non-GAAP net revenues of $1.8 billion. Reconciliations of the Company?s GAAP results to certain non-GAAP measures is discussed within and under ?Non-GAAP Financial Measures.?(5) Excludes revenue included in the Other segment.(6) See further discussion of non-GAAP adjustments under ?Non-GAAP Financial Measures.? In the first quarter of 2020, the Company adopted ASU No. 2016-13, ?Financial Instruments - Credit Losses (Topic 326) ? Measurement of Credit Losses on Financial Instruments,? which amends several aspects of the measurement of credit losses on certain financial instruments, including(7) replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (CECL) model. For further information about ASU No. 2016-13, see Note 2 ?Summary of Significant Accounting Policies? in Part II, Item 8 ?Financial Statements and Supplementary Data? in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. Book value per common share represents shareholders? equity (excluding(8) preferred stock and non-controlling interests) divided by period end common shares outstanding. Annualized return on average common shareholders? equity (?ROE?) is calculated by dividing annualized net income applicable to common(9) shareholders by average Stifel Financial common shareholders? equity or, in the case of non-GAAP ROE, calculated by dividing non-GAAP net income applicable to commons shareholders by average Stifel Financial common shareholders? equity.(10) Capital ratios are estimates at time of the Company?s earnings release.(11) Includes client margin balances held by our broker-dealer subsidiaries and securities-based loans held at our bank subsidiaries.(12) Includes Private Client Group and Trust Business.(13) Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees.(14) Asset management assets managed in Private Client Group or Trust accounts. Return on assets (ROA) is calculated based on prior period-end balances(15) for Private Client Group, period-end balances for Asset Management, and average quarterly balances for Individual Program Banks.(16) Includes Stifel Bank & Trust, Stifel Bank, Stifel Trust Company, N.A, and Stifel Trust Company Delaware, N.A.(17) Includes capital raising and advisory fees.(18) Includes net interest, asset management and service fees, and other income. Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards and(19) promissory notes issued as retention, professional fees, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company?s on-going business.(20) Primarily related to costs associated with Company?s legal matters.(21) See details of non-GAAP adjustments under ?Provision for Income Taxes.?

Media Contact: Neil Shapiro (212) 271-3447Investor Contact: Joel Jeffrey (212) 271-3610www.stifel.com/investor-relations