GlobeNewswire Inc | Apr 27, 2021 07:00AM EDT

April 27, 2021

-- Record net revenues of $1.1 billion, increased 24.3% with the year-ago quarter. -- Record net revenues in Global Wealth Management and Institutional Group segments. -- Net income available to common shareholders of $164.7 million, or $1.40 per diluted common share. -- Non-GAAP net income available to common shareholders of $176.4 million, or $1.50 per diluted common share. -- Record client assets of $378.6 billion, increased 36.9% compared with the year-ago quarter and 5.9% sequentially. -- Annualized return on average tangible common shareholders equity (1) was 26.5%. -- Non-GAAP annualized return on average tangible common shareholders equity (1) was 28.4%. -- The Board of Directors declared a $0.15 quarterly dividend per share, an increase of 36% from the prior quarter.

ST. LOUIS, April 27, 2021 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net income available to common shareholders of $164.7 million, or $1.40 per diluted common share on record net revenues of $1.1 billion for the three months ended March 31, 2021, compared with net income available to common shareholders of $81.7 million, or $0.71 per diluted common share,(2) on net revenues of $913.0 million for the first quarter of 2020.

For the three months ended March 31, 2021, the Company reported non-GAAP net income available to common shareholders of $176.4 million, or $1.50 per diluted common share. The Companys reported GAAP net income for the three months ended March 31, 2021 was primarily impacted by merger-related expenses. Details discussed below and in the Non-GAAP Financial Matters section.

Chairmans Comments

I am pleased with our first quarter results as we generated record net revenue and the second highest earnings per share in Stifels history, stated Ronald J. Kruszewski, Chairman and Chief Executive Officer of Stifel. The strength of our performance was driven by record revenue in both our operating segments, Global Wealth Management and Institutional Group. The operating environment in 2021 has been a tailwind to our business as the equity markets are up, client engagement is strong, credit remains solid, and investment banking activity surged. Our results in the quarter again illustrate the benefits of our diverse business as the investments we have made have enabled us to participate in these robust market conditions to a far greater magnitude than we could have in years past. Looking forward, Stifel is well positioned for another strong year.

Financial Highlights Three Months Ended (Unaudited)($ in 000s, except per GAAP GAAP % GAAP % Non-GAAP ^ Non-GAAP ^ %share data) 3/31/21 3/31/20 Change 12/31/20 Change (3) (3) Change 3/31/21 3/31/20Net revenues $ 1,134,789 $ 913,034 24.3 $ 1,059,910 7.1 $ 1,134,980 $ 913,213 24.3 Net income $ 173,015 $ 86,589 99.8 $ 188,469 (8.2 ) $ 184,714 $ 96,777 90.9 Preferred dividends 8,289 4,844 71.1 7,677 8.0 8,289 4,844 71.1 Net income available $ 164,726 $ 81,745 101.5 $ 180,792 (8.9 ) $ 176,425 $ 91,933 91.9 to common shareholdersEarnings per diluted $ 1.47 $ 0.75 96.0 $ 1.61 (8.7 ) $ 1.57 $ 0.84 86.9 common share ^(2)Earnings per dilutedcommon share available $ 1.40 $ 0.71 97.2 $ 1.55 (9.7 ) $ 1.50 $ 0.80 87.5 to common shareholders^(2)Compensation ratio 61.5 % 63.2 % 58.6 % 60.9 % 62.5 % Non-compensation ratio 18.4 % 24.2 % 19.3 % 17.7 % 23.4 % Pre-tax operating 20.1 % 12.6 % 22.1 % 21.4 % 14.1 % margin ^(4)

Net Revenues

Net revenues were a record $1.1 billion for the first quarter of 2021, a 24.3% increase from the first quarter of 2020 and a 7.1% increase from the fourth quarter of 2020. Net revenues, compared with the first quarter of 2020, reflected significantly higher investment banking revenues, asset management and service fees, and increased brokerage revenues, partially offset by lower net interest income. Net revenues, compared with the fourth quarter of 2020, reflected increased capital raising revenues, growth in brokerage revenues and asset management and services fees, as well as higher net interest income, partially offset by lower advisory fee revenues.

Brokerage Revenues

Brokerage revenues, defined as commissions and principal transactions, were $378.6 million, an 8.3% increase compared with the first quarter of 2020 and a 10.5% increase compared with the fourth quarter of 2020.

Three Months Ended ($ in 000s) 3/31/21 3/31/20 % 12/31/20 % Change ChangeGlobal Wealth $ 201,104 $ 179,879 11.8 $ 185,719 8.3 ManagementInstitutional brokerage:Equitycapital 79,121 70,195 12.7 69,201 14.3 marketsFixed incomecapital 98,395 99,688 (1.3 ) 87,664 12.2 marketsTotalinstitutional 177,516 169,883 4.5 156,865 13.2 brokerageTotalbrokerage $ 378,620 $ 349,762 8.3 $ 342,584 10.5 revenues ^(5)

-- Global Wealth Management brokerage revenues were $201.1 million, an 11.8% increase compared with the first quarter of 2020 and an 8.3% increase compared with the fourth quarter of 2020. -- Institutional equity brokerage revenues were $79.1 million, a 12.7% increase compared with the first quarter of 2020 and a 14.3% increase compared with the fourth quarter of 2020. -- Institutional fixed income brokerage revenues were $98.4 million, a 1.3% decrease compared with the first quarter of 2020 and a 12.2% increase compared with the fourth quarter of 2020.

Investment Banking Revenues

Investment banking revenues were a record $339.3 million, an 89.1% increase compared with the first quarter of 2020 and a 0.5% increase compared with the fourth quarter of 2020.

Three Months Ended ($ in 000s) 3/31/21 3/31/20 % Change 12/31/20 % Change Capital raising: Global Wealth $ 13,549 $ 10,314 31.4 $ 9,562 41.7 Management Equity capital 147,419 60,195 144.9 104,097 41.6 marketsFixed income capital 47,838 32,887 45.5 50,613 (5.5 )marketsInstitutional Group 195,257 93,082 109.8 154,710 26.2 Total capital 208,806 103,396 101.9 164,272 27.1 raising ^(5)Advisory fees 130,482 76,072 71.5 173,395 (24.7 )Total investment $ 339,288 $ 179,468 89.1 $ 337,667 0.5 banking ^(5)

-- Global Wealth Management capital raising revenues were $13.5 million, a 31.4% increase compared with the first quarter of 2020 and a 41.7% increase compared with the fourth quarter of 2020. -- Institutional equity capital raising revenues were $147.4 million, a 144.9% increase compared with the first quarter of 2020 and a 41.6% increase compared with the fourth quarter of 2020. -- Institutional fixed income capital raising revenues were $47.8 million, a 45.5% increase compared with the first quarter of 2020 and a 5.5% decrease compared with the fourth quarter of 2020. -- Advisory fee revenues were $130.5 million, a 71.5% increase compared with the first quarter of 2020 and a 24.7% decrease compared with the fourth quarter of 2020.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were a record $278.1 million, a 17.0% increase compared with the first quarter of 2020 and an 11.3% increase compared with the fourth quarter of 2020. The increase from the comparative period in 2020 is primarily attributable to higher asset values and strong fee-based asset flows. Please refer to the Asset Management and Service Fee Break-down table for additional details.

Net Interest Income

Net interest income was $113.1 million, a 17.3% decrease compared with the first quarter of 2020 and a 7.3% increase compared with the fourth quarter of 2020. The decrease from the first quarter of 2020 was primarily driven by the impact of lower interest rates. Please refer to the Net Interest Income Analysis table for additional details.

-- Interest income was $127.5 million, a 20.9% decrease compared with the first quarter of 2020 and a 6.4% increase compared with the fourth quarter of 2020. -- Interest expense was $14.4 million, a 40.7% decrease compared with the first quarter of 2020 and a 0.5% decrease compared with the fourth quarter of 2020.

Compensation and Benefits Expenses

For the quarter ended March 31, 2021, compensation and benefits expenses were $697.9 million, which included $6.2 million of merger-related and severance expenses (non-GAAP adjustments). This compares with $577.2 million in the first quarter of 2020 and $621.3 million in the fourth quarter of 2020. Excluding the non-GAAP adjustments, compensation and benefits as a percentage of net revenues were 60.9% in the first quarter of 2021 (non-GAAP measure).

The increase in compensation and benefits expenses, compared with the first quarter of 2020, is primarily attributable to revenue growth, as well as the change in the composition of revenues.

Three Months Ended ($ in 000s) 3/31/21 3/31/20 GAAP compensation and benefits $ 697,914 $ 577,179 As a percentage of net revenues 61.5 % 63.2 %Non-GAAP adjustments:^ (6) Merger-related and severance (6,174 ) (6,427 )Non-GAAP compensation and benefits $ 691,740 $ 570,752 As a percentage of non-GAAP net revenues 60.9 % 62.5 %

Non-Compensation Operating Expenses

For the quarter ended March 31, 2021, non-compensation operating expenses were $209.0 million, which included $9.1 million of merger-related expenses (non-GAAP adjustments). This compares with $220.7 million in the first quarter of 2020 and $203.9 million in the fourth quarter of 2020. Excluding the non-GAAP adjustments, non-compensation operating expenses as a percentage of net revenues for the quarter ended March 31, 2021 were 17.7% (non-GAAP measure).

The decrease in non-compensation operating expenses, compared with the first quarter of 2020, is primarily attributable to the release of the allowance for credit losses driven by improvements in the outlook for macroeconomic conditions, and lower travel, entertainment, and conference-related expenses. In addition, the net provisions for litigation matters were lower. These decreases were partially offset by higher volume-related expenses, including investment banking transaction expenses, reflecting an increase in activity levels. In addition, occupancy expense and professional fees were higher. In addition, non-compensation operating expenses for the three months ended March 31, 2020 were impacted by an increase in the provision for credit losses as a result of the impact of COVID-19 on the broader economic environment.

Three Months Ended ($ in 000s) 3/31/21 3/31/20 GAAP non-compensation expenses $ 208,983 $ 220,749 As a percentage of net revenues 18.4 % 24.2 %Non-GAAP adjustments:^ (6) Merger-related (9,064 ) (6,904 )Non-GAAP non-compensation expenses $ 199,919 $ 213,845 As a percentage of non-GAAP net revenues 17.7 % 23.4 %

Provision for Income Taxes

The GAAP effective income tax rate for the quarter ended March 31, 2021 was 24.1%. This compares with an effective income tax rate of 24.8% for the first quarter of 2020 and 19.7% for the fourth quarter of 2020. The adjusted non-GAAP effective income tax rate for the quarter ended March 31, 2021 was 24.1%.

Three Months Ended ($ in 000s) 3/31/21 3/31/20 GAAP provision for income taxes $ 54,877 $ 28,517 GAAP effective tax rate 24.1 % 24.8 %Non-GAAP adjustments:^ (6) Merger-related and severance 3,670 3,300 Other 60 22 3,730 3,322 Non-GAAP provision for income taxes $ 58,607 $ 31,839 Non-GAAP effective tax rate 24.1 % 24.8 %

Conference Call Information

Stifel Financial Corp. will host its first quarter 2021 financial results conference call on Tuesday, April 27, 2021, 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 7880334. 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. 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. For information about the risks and important factors that could affect the Companys future results, financial condition and liquidity, see Risk Factors in Part I, Item 1A of the Companys Annual Report on Form 10-K for the year ended December 31, 2020. 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 ($ in 000s,except per 3/31/21 3/31/20 % Change 12/31/20 % share Changeamounts)Revenues: Commissions $ 213,614 $ 211,098 1.2 $ 199,847 6.9 Principal 165,006 138,666 19.0 142,737 15.6 transactionsBrokerage 378,620 349,764 8.3 342,584 10.5 revenues Capital 208,806 103,396 101.9 164,276 27.1 raisingAdvisory fees 130,482 76,072 71.5 173,395 (24.7 )Investment 339,288 179,468 89.1 337,671 0.5 bankingAssetmanagement 278,147 237,775 17.0 249,928 11.3 and servicefeesOther income 25,634 9,207 178.4 24,366 5.2 Operating 1,021,689 776,214 31.6 954,549 7.0 revenuesInterest 127,540 161,177 (20.9 ) 119,876 6.4 revenueTotal 1,149,229 937,391 22.6 1,074,425 7.0 revenuesInterest 14,440 24,357 (40.7 ) 14,515 (0.5 )expenseNet revenues 1,134,789 913,034 24.3 1,059,910 7.1 Non-interest expenses:Compensation 697,914 577,179 20.9 621,344 12.3 and benefitsOccupancy andequipment 72,032 66,073 9.0 73,729 (2.3 )rentalCommunicationand office 41,825 41,124 1.7 40,443 3.4 suppliesCommissionsand floor 15,703 14,842 5.8 12,687 23.8 brokerageProvision for (5,252 ) 16,068 (132.7 ) ? n/m credit lossesOtheroperating 84,675 82,642 2.5 77,006 10.0 expensesTotalnon-interest 906,897 797,928 13.7 825,209 9.9 expensesIncome before 227,892 115,106 98.0 234,701 (2.9 )income taxesProvision for 54,877 28,517 92.4 46,232 18.7 income taxesNet income 173,015 86,589 99.8 188,469 (8.2 )Preferred 8,289 4,844 71.1 7,677 8.0 dividendsNet incomeavailable to $ 164,726 $ 81,745 101.5 $ 180,792 (8.9 )commonshareholdersEarnings percommon share: ^(2)Basic $ 1.53 $ 0.76 101.3 $ 1.70 (10.0 )Diluted $ 1.40 $ 0.71 97.2 $ 1.55 (9.7 ) Cashdividendsdeclared per $ 0.15 $ 0.11 36.4 $ 0.11 36.4 common share ^(2) Weightedaveragenumber of common sharesoutstanding: ^(2)Basic 107,746 106,929 0.8 106,041 1.6 Diluted 117,875 114,929 2.6 116,828 0.9

Summary Segment Results (Unaudited) Three Months Ended ($ in 000s) 3/31/21 3/31/20 % Change 12/31/20 % ChangeNet revenues: Global Wealth $ 631,495 $ 582,956 8.3 $ 575,252 9.8 ManagementInstitutional 506,081 332,238 52.3 489,448 3.4 GroupOther (2,787 ) (2,160 ) n/m (4,790 ) n/m Total net $ 1,134,789 $ 913,034 24.3 $ 1,059,910 7.1 revenues Operating expenses:Global Wealth $ 408,264 $ 388,789 5.0 $ 378,790 7.8 ManagementInstitutional 388,893 290,498 33.9 365,793 6.3 GroupOther 109,740 118,641 (7.5 ) 80,626 36.1 Totaloperating $ 906,897 $ 797,928 13.7 $ 825,209 9.9 expenses Operating contribution:Global Wealth $ 223,231 $ 194,167 15.0 $ 196,462 13.6 ManagementInstitutional 117,188 41,740 180.8 123,655 (5.2 )GroupOther (112,527 ) (120,801 ) (6.8 ) (85,416 ) 31.7 Income before $ 227,892 $ 115,106 98.0 $ 234,701 (2.9 )income taxes As a percentage of net revenues:Compensation and benefitsGlobal Wealth 53.3 51.2 52.8 ManagementInstitutional 59.6 62.0 58.1 GroupNon-comp.operating expensesGlobal Wealth 11.4 15.5 13.0 ManagementInstitutional 17.2 25.4 16.6 GroupIncome before income taxesGlobal Wealth 35.3 33.3 34.2 ManagementInstitutional 23.2 12.6 25.3 GroupConsolidatedpre-tax 20.1 12.6 22.1 margin

Financial metrics As of and For the Three Months Ended (unaudited):($ in 000s, exceptpercentages and per share 3/31/21 3/31/20 12/31/20 amounts)Total assets $ 28,141,581 $ 25,896,006 $ 26,604,254 Total shareholders' equity $ 4,318,872 $ 3,470,326 $ 4,238,766 Book value per common share $ 35.96 $ 30.75 $ 35.91 ^(2) ^(7)Return on common equity ^(8) 17.6 % 10.0 % 20.0 %Non-GAAP return on common 18.8 % 11.2 % 21.6 %equity ^(3) (8)Return on tangible common 26.5 % 16.6 % 30.8 %equity ^(1)Non-GAAP return on tangible 28.4 % 18.6 % 33.3 %common equity ^(1) (3)Tier 1 common capital ratio 16.0 % 14.3 % 16.5 %^(9)Tier 1 risk based capital 19.4 % 16.6 % 20.2 %ratio ^(9)Tier 1 leverage capital 11.5 % 9.6 % 11.9 %ratio ^(9)Pre-tax margin on net 20.1 % 12.6 % 22.1 %revenuesNon-GAAP pre-tax margin on 21.4 % 14.1 % 23.8 %net revenues ^(3) (4)Effective tax rate 24.1 % 24.8 % 19.7 %Non-GAAP effective tax rate 24.1 % 24.8 % 19.7 %^(3)

StatisticalInformation As of and For the Three Months Ended (unaudited):($ in 000s,except % %financial 3/31/21 3/31/20 Change 12/31/20 Change advisors andlocations)Financial 2,182 2,130 2.4 2,187 (0.2 )advisorsIndependent 92 94 (2.1 ) 93 (1.1 )contractorsTotal financial 2,274 2,224 2.2 2,280 (0.3 )advisorsLocations 446 447 (0.2 ) 450 (0.9 )Total client $ 378,615,000 $ 276,627,000 36.9 $ 357,429,000 5.9 assetsFee-based $ 137,804,000 $ 93,633,000 47.2 $ 129,372,000 6.5 client assetsClient moneymarket and $ 23,616,000 $ 17,234,000 37.0 $ 22,837,000 3.4 insured productSecured client $ 3,124,545 $ 3,148,790 (0.8 ) $ 2,816,973 10.9 lending ^(10)



Asset Management and Service Fee Break-down (unaudited) AssetManagementand Service Three Months Ended FeeRevenues:($ in 000s) 3/31/21 3/31/20 % Change 12/31/20 % Change PrivateClient $ 233,805 $ 193,260 21.0 $ 208,238 12.3 Group ^(11)Asset 30,114 29,762 1.2 28,298 6.4 ManagementThird-partyBank Sweep 2,102 3,308 (36.5 ) 2,782 (24.4 )ProgramOther ^(12) 12,126 11,445 6.0 10,610 14.3 Total assetmanagementand service $ 278,147 $ 237,775 17.0 $ 249,928 11.3 feerevenues Fee-based Three Months Ended Assets:($ in 3/31/21 3/31/20 % Change 12/31/20 % Change millions)PrivateClient $ 119,836 $ 80,617 48.6 $ 111,995 7.0 Group ^(11)Asset 31,115 22,752 36.8 29,864 4.2 ManagementElimination (13,147 ) (9,736 ) 35.0 (12,487 ) 5.3 ^(13)Totalfee-based $ 137,804 $ 93,633 47.2 $ 129,372 6.5 assets Third-partyBank Sweep $ 6,455 $ 1,491 332.9 $ 6,555 (1.5 )Program ROA (bps) ^ (14)PrivateClient 83.5 83.9 83.8 Group ^(11)Asset 38.7 38.0 37.9 ManagementThird-partyBank Sweep 12.3 95.0 18.9 Program

Consolidated Net Interest Income Analysis (Unaudited): Three Months Ended March 31, 2021 March 31, 2020 December 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 $ 1,812.2 $ 0.9 0.20 % $ 931.8 $ 3.7 1.58 % $ 1,545.2 $ 1.1 0.28 %funds soldFinancial 807.8 2.9 1.43 1,076.6 4.6 1.70 670.9 2.2 1.33 instruments ownedMargin balances 961.6 6.1 2.53 1,231.7 10.1 3.29 869.0 5.9 2.70 Investments: Asset-backed 4,724.6 21.3 1.80 4,538.5 37.0 3.26 4,826.6 21.5 1.78 securitiesMortgage-backed 905.9 3.3 1.44 1,094.2 6.0 2.18 758.8 2.6 1.38 securitiesCorporate fixed 639.8 5.4 3.37 732.8 5.0 2.76 602.8 4.1 2.74 income securitiesOther 6.4 ? 2.06 22.3 0.1 2.14 6.8 0.1 2.10 Total Investments 6,276.7 30.0 1.91 6,387.8 48.1 3.01 6,195.0 28.3 1.83 Loans: Commercial and 4,573.6 39.5 3.45 3,560.3 38.0 4.27 4,206.7 32.7 3.11 industrialResidential real 3,994.5 27.0 2.71 3,416.1 25.3 2.96 3,820.8 27.7 2.90 estateSecurities-based 2,002.3 9.7 1.94 2,063.8 16.5 3.19 1,899.7 9.6 2.03 loansCommercial real 371.0 3.3 3.51 445.0 5.8 5.22 379.1 3.3 3.52 estateLoans held for sale 534.4 2.8 2.09 374.5 4.0 4.26 489.1 3.0 2.45 Other 639.9 4.9 3.07 500.1 5.6 4.46 649.3 4.9 3.02 Total Loans 12,115.7 87.2 2.88 10,359.8 95.2 3.67 11,444.7 81.2 2.84 Otherinterest-bearing 596.2 0.4 0.32 607.9 (0.5 ) (0.30 ) 469.6 1.2 1.00 assetsTotalinterest-earning 22,570.2 127.5 2.26 20,595.6 161.2 3.13 21,194.4 119.9 2.26 assets/interestincomeInterest-bearing liabilities:Senior notes 1,112.5 12.1 4.35 1,017.1 11.2 4.40 1,311.0 14.4 4.39 Deposits 17,629.6 1.3 0.03 15,377.9 9.6 0.25 16,429.1 1.2 0.03 FHLB 15.8 ? 0.29 590.5 2.4 1.59 137.0 0.1 0.34 Otherinterest-bearing 1,209.6 1.0 0.34 1,719.4 1.2 0.29 513.9 (1.2 ) (0.94 )liabilitiesTotalinterest-bearing $ 19,967.5 $ 14.4 0.29 % $ 18,704.9 $ 24.4 0.52 % $ 18,391.0 $ 14.5 0.32 %liabilities/interestexpenseNet interest income/ $ 113.1 2.00 % $ 136.8 2.66 % $ 105.4 1.99 %margin

Stifel Bancorp, Inc. ^(15) Net Interest Income Analysis (Unaudited): Three Months Ended March 31, 2021 March 31, 2020 December 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 $ 962.3 $ 0.3 0.12 % $ 446.0 $ 1.2 1.10 % $ 546.7 $ 0.2 0.15 %funds soldInvestments 6,276.7 30.0 1.91 6,387.8 48.1 3.01 6,195.0 28.3 1.83 Loans 12,115.7 87.2 2.88 10,359.8 95.2 3.67 11,444.7 81.2 2.84 Otherinterest-bearing 40.7 0.2 2.23 59.6 0.6 4.02 42.8 0.4 3.20 assetsTotalinterest-earning 19,395.4 117.7 2.43 17,253.2 145.1 3.36 18,229.2 110.1 2.42 assets/interestincomeInterest-bearing liabilities:Deposits 17,629.6 1.3 0.03 15,377.9 9.6 0.25 16,429.1 1.2 0.03 FHLB 15.8 ? 0.29 590.5 2.4 1.59 137.0 0.1 0.34 Otherinterest-bearing 1.4 ? 7.92 1.6 ? 7.09 1.4 0.1 9.87 liabilitiesTotalinterest-bearing $ 17,646.8 1.3 0.03 % $ 15,970.0 12.0 0.30 % $ 16,567.5 1.4 0.03 %liabilities/interestexpenseNet interest income/ $ 116.4 2.40 % $ 133.1 3.09 % $ 108.7 2.39 %margin

Stifel Bancorp, Inc. ^(15) - a component of Global Wealth Management Selectedoperating data Three Months Ended (unaudited):($ in 000s, %except 3/31/21 3/31/20 % Change 12/31/20 Change percentages)Net interest $ 116,387 $ 133,131 (12.6 ) $ 108,699 7.1 incomeCredit lossprovision/ (5,252 ) 16,068 (132.7 ) ? n/m (release)Charge-offs 934 20 n/m ? n/m Net interest 2.40 % 3.09 % (69) bps 2.39 % 1 bps margin

Financial Metrics As of (unaudited):($ in 000s, except 3/31/21 3/31/20 12/31/20 percentages)Total assets $ 20,500,414 $ 18,442,914 $ 18,867,133 Total shareholders' 1,474,473 1,224,307 1,399,382 equityTotal loans, net(includes loans 12,422,234 10,565,287 11,558,008 held for sale)Total deposits 18,715,133 16,880,933 17,396,497 Available-for-salesecurities, at fair 2,189,664 3,363,961 2,229,878 valueHeld-to-maturitysecurities, at 4,758,910 3,083,065 4,114,840 amortized costCommercial and 4,923,494 3,813,862 4,296,089 industrialResidential real 4,158,033 3,495,136 3,956,670 estateSecurities-based 2,089,747 1,945,371 1,933,974 loansCommercial real 374,736 399,732 366,485 estateLoans held for sale 330,521 570,787 551,248 Stifel Bank & Trust:Common equity tier1 capital ratio ^ 11.1 % 11.7 % 11.4 %(9)Tier 1 capital 11.1 % 11.7 % 11.4 %ratio ^(9)Total capital ratio 12.4 % 13.0 % 12.7 %^(9)Tier 1 leverage 7.1 % 7.1 % 7.1 %ratio ^(9)Stifel Bank: Common equity tier1 capital ratio ^ 18.5 % 15.6 % 16.5 %(9)Tier 1 capital 18.5 % 15.6 % 16.5 %ratio ^(9)Total capital ratio 19.2 % 16.5 % 17.7 %^(9)Tier 1 leverage 7.3 % 7.3 % 7.3 %ratio ^(9) Credit Metrics: Allowance for $ 129,109 $ 121,017 $ 135,295 credit lossesAllowance as apercentage of 1.06 % 1.20 % 1.22 %retained loansNet charge-offs asa percentage of 0.01 % 0.00 % 0.00 %average loansTotal nonperforming $ 13,756 $ 14,616 $ 13,925 assetsNonperformingassets as % of 0.07 % 0.08 % 0.07 %total assets

Global Wealth Management Summary Results of Operations (Unaudited) Three Months Ended ($ in 000s) 3/31/21 3/31/20 % 12/31/20 % Change ChangeRevenues: Commissions $ 147,505 $ 136,897 7.7 $ 139,594 5.7 Principal transactions 53,599 42,982 24.7 46,125 16.2 Brokerage revenues 201,104 179,879 11.8 185,719 8.3 Asset management and 278,109 237,760 17.0 249,907 11.3 service feesNet interest 117,775 138,682 (15.1 ) 110,521 6.6 Investment banking ^(16) 13,549 10,333 31.1 9,562 41.7 Other income 20,958 16,302 28.6 19,543 7.2 Net revenues 631,495 582,956 8.3 575,252 9.8 Non-interest expenses: Compensation and 336,721 298,370 12.9 303,961 10.8 benefitsNon-compensation 71,543 90,419 (20.9 ) 74,829 (4.4 )operating expensesTotal non-interest 408,264 388,789 5.0 378,790 7.8 expensesIncome before income $ 223,231 $ 194,167 15.0 $ 196,462 13.6 taxes As a percentage of net revenues:Compensation and 53.3 51.2 52.8 benefitsNon-compensation 11.4 15.5 13.0 operating expensesIncome before income 35.3 33.3 34.2 taxes

Institutional Group Summary Results of Operations (Unaudited) Three Months Ended ($ in 000s) 3/31/21 3/31/20 % 12/31/20 % Change ChangeRevenues: Commissions $ 66,109 $ 74,198 (10.9 ) $ 60,253 9.7 Principal 111,407 95,685 16.4 96,612 15.3 transactionsBrokerage 177,516 169,883 4.5 156,865 13.2 revenuesCapital raising 195,257 93,082 109.8 154,710 26.2 Advisory fees 130,482 76,053 71.6 173,399 (24.8 )Investment 325,739 169,135 92.6 328,109 (0.7 )bankingOther ^(17) 2,826 (6,780 ) n/m 4,474 (36.8 )Net revenues 506,081 332,238 52.3 489,448 3.4 Non-interest expenses:Compensation and 301,624 205,988 46.4 284,607 6.0 benefitsNon-compensationoperating 87,269 84,510 3.3 81,186 7.5 expensesTotalnon-interest 388,893 290,498 33.9 365,793 6.3 expensesIncome before $ 117,188 $ 41,740 180.8 $ 123,655 (5.2 )income taxes As a percentage of net revenues:Compensation and 59.6 62.0 58.1 benefitsNon-compensationoperating 17.2 25.4 16.6 expensesIncome before 23.2 12.6 25.3 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 March 31, 2021, March 31, 2020, and December 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 months ended March 31, 2021, March 31, 2020, and December 31, 2020 to net income and earnings per diluted common share on a non-GAAP basis for the same period.

Three Months Ended ($ in 000s) 3/31/21 3/31/20 12/31/20 GAAP net income $ 173,015 $ 86,589 $ 188,469 Preferred dividend 8,289 4,844 7,677 Net income available to 164,726 81,745 180,792 common shareholders Non-GAAP adjustments: Merger-related and severance 15,429 13,510 17,706 ^(18)Provision for income taxes ^ (3,730 ) (3,322 ) (3,444 )(19)Total non-GAAP adjustments 11,699 10,188 14,262 Non-GAAP net incomeavailable to common $ 176,425 $ 91,933 $ 195,054 shareholders Weighted average diluted 117,875 114,929 116,828 shares outstanding ^(2) GAAP earnings per diluted $ 1.47 $ 0.75 $ 1.61 common share ^(2)Non-GAAP adjustments ^(2) 0.10 0.09 0.13 Non-GAAP earnings per $ 1.57 $ 0.84 $ 1.74 diluted common share ^(2) GAAP earnings per dilutedcommon share available to $ 1.40 $ 0.71 $ 1.55 common shareholders ^(2)Non-GAAP adjustments ^(2) 0.10 0.09 0.12 Non-GAAP earnings perdiluted common share $ 1.50 $ 0.80 $ 1.67 available to commonshareholders ^(2)

Footnotes

(1)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 common shareholders equity equals total common shareholders equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $51.7 million, $47.2 million, and $50.7 million, as of March 31, 2021 and 2020, and December 31, 2020, respectively. Historical periods have been restated to conform with the current period presentation.(2)All share and per share information has been retroactively adjusted to reflect the December 2020 three-for-two stock split.(3)Reconciliations of the Companys GAAP results to these non-GAAP measures are discussed within and under Non-GAAP Financial Measures.(4)Non-GAAP pre-tax margin for the three months ended March 31, 2021 of 21.4% is calculated by adding non-GAAP adjustments of $15.4 million to our GAAP income before income taxes of $227.9 million and dividing it by non-GAAP net revenues for the quarter of $1.1 billion. Reconciliations of the Companys 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.(7)Book value per common share represents shareholders equity (excluding preferred stock) divided by period end common shares outstanding.(8)Annualized return on average common shareholders equity (ROE) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders equity or, in the case of non-GAAP ROE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders equity.(9)Capital ratios are estimates at time of the Companys earnings release.(10)Includes client margin balances held by the Companys broker-dealer subsidiaries and securities-based loans held at the Companys bank subsidiaries.(11)Includes Private Client Group and Trust Business.(12)Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees.(13)Asset management assets managed in Private Client Group or Trust accounts.(14)Return on assets (ROA) is calculated based on prior period-end balances for Private Client Group, period-end balances for Asset Management, and average quarterly balances for Individual Program Banks.(15)Includes Stifel Bank & Trust, Stifel Bank, Stifel Trust Company, N.A, and Stifel Trust Company Delaware, N.A.(16)Includes capital raising and advisory fees.(17)Includes net interest, asset management and service fees, and other income.(18)Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards and promissory notes issued as retention, 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 Companys on-going business.(19)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