sf-8k_20200430.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

_________________________

FORM 8-K

_________________________

CURRENT REPORT
Pursuant To Section 13 OR 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 30, 2020

_________________________

STIFEL FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

_________________________

Delaware
(State of incorporation)

001-09305
(Commission File Number)

43-1273600
(IRS Employer
Identification No.)

501 N. Broadway, St. Louis, Missouri 63102-2188

(Address of principal executive offices and zip code)

(314) 342-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.15 par value per share	SF		New York Stock Exchange
Depository Shares, each representing 1/1,000th interest in a share of 6.25% Non-Cumulative Preferred Stock, Series A	SF PRA		New York Stock Exchange
Depository Shares, each representing 1/1,000th interest in a share of 6.25% Non-Cumulative Preferred Stock, Series B	SF PRB		New York Stock Exchange
5.20% Senior Notes due 2047	SFB		New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 30, 2020, Stifel Financial Corp. (“Stifel” or the “Company”) reported its financial results for the three months ended March 31, 2020. A copy of the related press release is attached hereto as Exhibit 99.1.

Stifel will hold a conference call on Thursday, April 30, 2020, at 9:30 a.m. Eastern time. All interested parties are invited to listen to Stifel Chairman and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID 5496039. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through Stifel's web site, www.stifel.com. 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. The conference call slide show is attached hereto as Exhibit 99.2.

The exhibit is being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01 Other Events

The following risk factors supplement the “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Our results of operations have been, and will likely continue to be, adversely affected by the COVID-19 pandemic.

The coronavirus disease (COVID-19) pandemic has, and will likely continue to, severely impact global economic conditions, resulting in substantial volatility in the global financial markets, increased unemployment, and operational challenges such as the temporary closures of businesses, sheltering-in-place directives and increased remote work protocols. Governments and central banks around the world have reacted to the economic crisis caused by the pandemic by implementing stimulus and liquidity programs and cutting interest rates, though it is unclear whether these or future actions will be successful in countering the economic disruption. If the pandemic is prolonged or the actions of governments and central banks are unsuccessful, the adverse impact on the global economy will deepen, and our results of operations and financial condition in future quarters will be adversely affected.

Towards the end of the first quarter of 2020 and into April 2020, the pandemic impacted each of our business segments and such impact will likely be greater in future quarters if conditions persist (e.g., decline and volatility of asset prices, reduction in interest rates, widening of credit spreads, credit deterioration, market volatility and reduced investment banking advisory activity). This resulted in significant decreases in the valuation of loans and commitments, investments and certain classes of trading assets, an increase in the allowance for credit losses, reduced net interest income, and reduced investment banking advisory fees. At the same time, increased revenues for certain products related to high levels of client trading activity may not be replicated in future quarters.

Should these global market conditions be prolonged or worsen, or the pandemic lead to additional market disruptions, we could experience reduced client activity and demand for our products and services, higher credit and valuation losses in our loan and commitment and investment portfolios, impairments of other financial assets and other negative impacts on our financial position, including possible constraints on capital and liquidity, as well as a higher cost of capital, and possible changes or downgrades to our credit ratings. In addition, the sharp decline in interest rates will further decrease interest margins in our lending businesses. A continued slowdown of commercial activity would cause overall investment banking revenues to decline and the decline in assets under management and client balances will also further reduce asset management and service revenues.

Operationally, although we have initiated a work remotely protocol and restricted business travel of our workforce, if significant portions of our associates, including key personnel, are unable to work effectively because of illness, government actions, or other restrictions in connection with the pandemic, the impact of the pandemic on our businesses could be exacerbated.

Our business is dependent on the willingness and ability of our customers to conduct financial transactions. The continued spread of COVID-19, or another highly infectious or contagious disease, could cause severe disruptions in such activities, as well as other aspects of conducting our business. These effects could include restrictions on our employees’ ability to travel, as well as temporary closures of our facilities or the facilities of our customers, suppliers, or other vendors. We often recruit skilled professionals and new clients by visiting their offices or having them visit our offices. Consequently, any travel restrictions or other disruptions that prevent us from meeting with professional prospects or potential new clients may adversely impact our ability to recruit such professional prospects or engage potential new clients.

While the COVID-19 pandemic negatively impacted our results of operations in the first quarter of 2020, the extent to which it, and the related global economic crisis, affect our businesses, results of operations and financial condition, as well as our regulatory capital and liquidity ratios, will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and any recovery period, future actions taken by governmental authorities, central banks and other third parties in response to the pandemic, and the effects on our customers, counterparties, employees and third-party service providers. Moreover, the effects of the COVID-19 pandemic will heighten the other risks described in the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K.

We have grown our asset management business in recent years, which has increased the risks associated with this business relative to our overall operations. The asset management fees we are paid are dependent upon the value of client assets in fee-based accounts in our Private Client Group segment, as well as AUM in our asset management business. Therefore, in periods of declining market values, the values of fee-based accounts and AUM could resultantly decline, which would negatively impact our revenues. In addition, below-market investment performance by our funds, portfolio managers, or financial advisors could result in reputational damage that might cause outflows or make it more difficult to attract new investors into our asset management products and thus further impact our business and financial condition.

Market volatility could also cause clients to move their investments to lower margin products, or withdraw them, which could have an adverse impact on our profitability. We could also experience a material reduction in trading volume and lower securities prices in times of market volatility, which would result in lower brokerage revenues, including losses on trading inventory. The fair values of certain of our investments could also be negatively impacted, resulting in unrealized or realized losses on such investments.

We effect certain client securities transactions on either a cash or margin basis. We are subject to the risk of a market decline, which could reduce the value of our collateral below the amount of the customers’ indebtedness. In addition, we offer securities-based lending through Stifel Bancorp. These security-based loans are also subject to the degree of concentrated or restricted positions, or, in the case of concentrated positions, appropriate liquidity of the underlying collateral or potential hedging strategies, which risks are heightened in an environment characterized by declining economic or market conditions as a result of COVID-19.

We are generally exposed to the risk that third parties that owe us money, securities, or other assets will fail to meet their obligations to us due to numerous causes, including bankruptcy, lack of liquidity, or operational failure, among others. We actively buy securities from and sell securities to clients and counterparties in the normal course of our broker-dealers’ market-making and underwriting businesses, which exposes us to credit risk. Our credit risk and credit losses may increase to the extent our loans or investments are to borrowers or issuers who as a group may be uniquely or disproportionately affected by declining economic or market conditions as a result of COVID-19 such as those operating in the travel, lodging, retail, entertainment and energy industries. The deterioration of an individually large exposure due to COVID-19 could lead to additional loan loss provisions and/or charges-offs, or credit impairment of our investments, and subsequently have a material impact on our results of operations, financial condition, regulatory capital, and liquidity.

Abrupt changes in market and general economic conditions have in the past adversely affected, and may in the future adversely affect, our business and profitability and cause volatility in our results of operations.

Economic and market conditions have had, and will continue to have, a direct and material impact on our results of operations and financial condition because performance in the financial services industry is heavily influenced by the overall strength of general economic conditions and financial market activity.

Our investment banking revenue, in the form of advisory services and underwriting, is directly related to general economic conditions and corresponding financial market activity. When the outlook for such economic conditions is uncertain or negative, financial market activity generally tends to decrease, which reduces our investment banking revenues. Reduced expectations of United States economic growth or a decline in the global economic outlook could cause financial market activity to decrease and negatively affect our investment banking revenues.

In addition to the business risks set forth in the previous risk factors, global economic conditions and global financial markets remain vulnerable to the potential risks posed by certain events, which could include, among other things, political and financial uncertainty in the United States and the European Union, renewed concern about China's economy, complications involving terrorism and armed conflicts around the world, or other challenges to global trade or travel, such as might occur in the event of a wider pandemic involving COVID-19. More generally, because our business is closely correlated to the general economic outlook, a significant deterioration in that outlook or realization of certain events would likely have an immediate and significant negative impact on our business and overall results of operations.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit NumberDescription of Exhibit

99.1

Press release dated April 30, 2020.

99.2

104

Investor presentation.

Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

STIFEL FINANCIAL CORP.


Date: April 30, 2020	By:	/s/ James M. Marischen
	Name:	James M. Marischen
	Title:	Chief Financial Officer

Exhibit 99.1

April 30, 2020

FOR IMMEDIATE RELEASE

Media Contact: Neil Shapiro (212) 271-3447

Investor Contact: Joel Jeffrey (212) 271-3610

www.stifel.com/investor-relations

STIFEL REPORTS FIRST QUARTER 2020 RESULTS

•

Net revenues of $913.0 million, increased 18.5% with the year-ago quarter.

•

Net income available to common shareholders of $81.7 million, or $1.07 per diluted common share.

•

Non-GAAP net income available to common shareholders of $91.9 million, or $1.20 per diluted common share.

•

Annualized return on average tangible common shareholders’ equity ⁽¹⁾ was 17.4%.

•

Non-GAAP annualized return on average tangible common shareholders’ equity ⁽¹⁾ was 19.5%.

•

The Board of Directors declared a $0.17 quarterly dividend per share, an increase of 13% from the prior quarter.

•

The Company repurchased $56.2 million of its outstanding common stock.

ST. LOUIS, MO – Stifel Financial Corp. (NYSE: SF) today reported net income available to common shareholders of $81.7 million, or $1.07 per diluted common share on net revenues of $913.0 million for the three months ended March 31, 2020, compared with net income available to common shareholders of $96.9 million, or $1.22 per diluted common share, on net revenues of $770.4 million for the first quarter of 2019.

For the three months ended March 31, 2020, the Company reported non-GAAP net income available to common shareholders of $91.9 million, or $1.20 per diluted common share. The Company’s reported GAAP net income for the three months ended March 31, 2020 was primarily impacted by merger-related expenses. Details discussed below and in the “Non-GAAP Financial Matters” section.

Chairman’s Comments

“Given the impact of the current healthcare crisis on the economy and our daily lives, I’d like to say how proud I am of my Stifel partners and associates who have shown resolve, creativity, and teamwork to achieve the dual objectives of promoting the safety of our people while delivering essential and exceptional service to our clients. Our results in the first quarter illustrate the value of our diversified business as we generated our second highest quarterly revenue despite the sudden and dramatic change in the economy following the COVID -19 outbreak. Record Global Wealth Management revenue and our second strongest quarter for our Institutional Group was driven by record brokerage revenue as well as strong investment banking, net interest income and fee-based revenue. Given the operating conditions in the quarter, I believe that our brokerage results deserve special praise. In a matter of days, and with a focus on employee safety, we rapidly deployed our business continuity plan that resulted in more than 90% of our employees working remotely and enabled our Institutional Group to go from eight primary trading desks to more than 180 separate trading locations. This underscores the value of the investments we have made over the years in both people and technology,” stated Ronald J. Kruszewski, Chairman and Chief Executive Officer of Stifel.

Mr. Kruszewski continued, “The next few months have a high level of uncertainty, which can drive a wide range of economic outcomes. Longer term, we believe the world and our economy will overcome this pandemic. Looking forward, Stifel is well positioned because of its diversified business model, solid and liquid balance sheet, and our associates’ commitment to excellence.”

Financial Highlights (Unaudited)	Three Months Ended
($ in 000s, except per share data)	GAAP 3/31/20			GAAP 3/31/19			% Change			GAAP12/31/19			% Change			Non-GAAP ⁽²⁾ 3/31/20			Non-GAAP ⁽²⁾ 3/31/19			% Change
Net revenues	$	913,034		$	770,420			18.5		$	944,251			(3.3	)	$	913,213		$	770,420			18.5
Net income applicable to Stifel Financial Corp.	$	86,589		$	99,207			(12.7	)	$	130,690			(33.7	)	$	96,777		$	106,864			(9.4	)
Preferred dividends		4,844			2,344			106.7			4,843		n/m				4,844			2,344			106.7
Net income available to common shareholders	$	81,745		$	96,863			(15.6	)	$	125,847			(35.0	)	$	91,933		$	104,520			(12.0	)
Earnings per diluted common share	$	1.13		$	1.25			(9.6	)	$	1.68			(32.7	)	$	1.26		$	1.35			(6.7	)
Earnings per diluted common share available to common shareholders	$	1.07		$	1.22			(12.3	)	$	1.62			(34.0	)	$	1.20		$	1.32			(9.1	)
Compensation ratio		63.2	%		59.5	%					60.0	%					62.5	%		59.0	%
Non-compensation ratio		24.2	%		22.6	%					22.8	%					23.4	%		22.0	%
Pre-tax operating margin ⁽³⁾		12.6	%		17.9	%					17.2	%					14.1	%		19.0	%

Net Revenues

Net revenues were $913.0 million for the first quarter of 2020, an 18.5% increase from the first quarter of 2019 and a 3.3% decrease from our record fourth quarter of 2019. Net revenues, compared with the first quarter of 2019, reflected significantly higher brokerage revenues, increased capital raising revenues, and asset management and service fees, partially offset by lower advisory fee revenues and net interest income. Net revenues, compared with the fourth quarter of 2019, reflected significantly lower advisory fee revenues and a decline in capital raising revenues, partially offset by an increase in brokerage revenues, asset management and service fees, and net interest income.

The operating environment, notably in March, was impacted by the spread of the COVID-19 virus which caused a sharp contraction in global economic activity and increased market volatility. The decline of asset prices, reduction in interest rates, widening of credit spreads, lending and counterparty credit deterioration, market volatility, and reduced investment banking activity had the most immediate negative impacts on the Company’s first quarter results. At the same time, high levels of client trading activity related to market volatility significantly impacted brokerage revenues.

Brokerage Revenues

Brokerage revenues, defined as commissions and principal transactions, were $349.8 million, a 34.8% increase compared with the first quarter of 2019 and a 20.8% increase compared with the fourth quarter of 2019.

	Three Months Ended
($ in 000s)	3/31/20		3/31/19		% Change		12/31/19		% Change
Global Wealth Management	$	179,879	$	153,194		17.4	$	174,000		3.4
Institutional brokerage:
Equity capital markets		70,195		38,881		80.5		45,989		52.6
Fixed income capital markets		99,688		67,406		47.9		69,563		43.3
Total institutional brokerage		169,883		106,287		59.8		115,552		47.0
Total brokerage revenues ⁽⁴⁾	$	349,762	$	259,481		34.8	$	289,552		20.8

•

Global Wealth Management brokerage revenues were $179.9 million, a 17.4% increase compared with the first quarter of 2019 and a 3.4% increase compared with the fourth quarter of 2019.

•

Institutional equity brokerage revenues were $70.2 million, an 80.5% increase compared with the first quarter of 2019 and a 52.6% increase compared with the fourth quarter of 2019.

•

Institutional fixed income brokerage revenues were $99.7 million, a 47.9% increase compared with the first quarter of 2019 and a 43.3% increase compared with the fourth quarter of 2019.

Investment Banking Revenues

Investment banking revenues were $179.5 million, a 10.9% increase compared with the first quarter of 2019 and a 35.3% decrease compared with the fourth quarter of 2019.

	Three Months Ended
($ in 000s)	3/31/20		3/31/19		% Change			12/31/19		% Change
Capital raising:
Global Wealth Management	$	10,314	$	8,223		25.4		$	9,278		11.2

Equity capital markets		60,195		27,859		116.1			64,384		(6.5	)
Fixed income capital markets		32,887		20,863		57.6			48,181		(31.7	)
Institutional Group		93,082		48,722		91.0			112,565		(17.3	)
Total capital raising ⁽⁴⁾		103,396		56,945		81.6			121,843		(15.1	)
Advisory fees ⁽⁴⁾		76,072		104,895		(27.5	)		155,331		(51.0	)
Total investment banking	$	179,468	$	161,840		10.9		$	277,174		(35.3	)

•

Global Wealth Management capital raising revenues were $10.3 million, a 25.4% increase compared with the first quarter of 2019 and an 11.2% increase compared with the fourth quarter of 2019.

•

Institutional equity capital raising revenues were $60.2 million, a 116.1% increase compared with the first quarter of 2019 and a 6.5% decrease compared with the fourth quarter of 2019.

•

Institutional fixed income capital raising revenues were $32.9 million, a 57.6% increase compared with the first quarter of 2019 and a 31.7% decrease compared with the fourth quarter of 2019.

•

Advisory fee revenues were $76.1 million, a 27.5% decrease compared with the first quarter of 2019 and a 51.0% decrease compared with the fourth quarter of 2019.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were $237.8 million, a 21.8% increase compared with the first quarter of 2019 and a 6.2% increase compared with the fourth quarter of 2019. The increase from the comparative period in 2019 is primarily attributable to higher asset levels at the beginning of the first quarter of 2020 and strong fee-based asset flows. See Asset Management and Service Fee Break-down table.

Net Interest Income

Net interest income of $136.8 million, a 3.4% decrease compared with the first quarter of 2019 and a 0.9% increase compared with the fourth quarter of 2019. See Net Interest Income Analysis table.

•

Interest income was $161.2 million, a 15.6% decrease compared with the first quarter of 2019 and a 3.5% decrease compared with the fourth quarter of 2019.

•

Interest expense was $24.4 million, a 50.7% decrease compared with the first quarter of 2019 and a 22.5% decrease compared with the fourth quarter of 2019.

Compensation and Benefits Expenses

For the quarter ended March 31, 2020, compensation and benefits expenses were $577.2 million, which included $6.4 million of merger-related and severance expenses (non-GAAP adjustments). This compares with $458.1 million in the first quarter of 2019 and $567.0 million in the fourth quarter of 2019. Excluding the non-GAAP adjustments, compensation and benefits as a percentage of net revenues were 62.5% in the first quarter of 2020 (non-GAAP measure).

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

	Three Months Ended
($ in 000s)	3/31/20			3/31/19
GAAP compensation and benefits	$	577,179		$	458,114
As a percentage of net revenues		63.2	%		59.5	%
Non-GAAP adjustments:⁽⁵⁾
Merger-related and severance		(6,427	)		(3,932	)
Non-GAAP compensation and benefits	$	570,752		$	454,182
As a percentage of non-GAAP net revenues		62.5	%		59.0	%

Non-Compensation Operating Expenses

For the quarter ended March 31, 2020, non-compensation operating expenses were $220.7 million, which included $6.9 million of merger-related expenses (non-GAAP adjustments). This compares with $174.5 million in the first quarter of 2019 and $214.7 million in the fourth quarter of 2019. Excluding the non-GAAP adjustments, non-compensation operating expenses as a percentage of net revenues for the quarter ended March 31, 2020 were 23.4% (non-GAAP measure).

The increase in non-compensation operating expenses, compared with the first quarter of 2019, is primarily attributable to the increase in the provision for loan 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. In addition, the first quarter of 2020 included provisions related to growth in loans and the impact of accounting for credit losses under the CECL standard ⁽⁶⁾.

	Three Months Ended
($ in 000s)	3/31/20			3/31/19
GAAP non-compensation expenses	$	220,749		$	174,497
As a percentage of net revenues		24.2	%		22.6	%
Non-GAAP adjustments:⁽⁵⁾
Merger-related		(6,904	)		(4,259	)
Non-GAAP non-compensation expenses	$	213,845		$	170,238
As a percentage of non-GAAP net revenues		23.4	%		22.0	%

Provision for Income Taxes

The GAAP effective income tax rate for the quarter ended March 31, 2020 was 24.8%. This compares with an effective income tax rate of 27.9% for the first quarter of 2019 and 19.6% for the fourth quarter of 2019. The adjusted non-GAAP effective income tax rate for the quarter ended March 31, 2020 was 24.8%.

The effective income tax rate was primarily impacted by tax benefits on the settlement of employee share-based awards and the establishment of a valuation allowance on certain deferred tax assets in the first quarter of 2020.

	Three Months Ended
($ in 000s)	3/31/20			3/31/19
GAAP provision for income taxes	$	28,517		$	38,370
GAAP effective tax rate		24.8	%		27.9	%
Non-GAAP adjustments:⁽⁵⁾
Merger-related and severance		3,300			2,203
Other		22			(1,669	)
		3,322			534
Non-GAAP provision for income taxes	$	31,839		$	38,904
Non-GAAP effective tax rate		24.8	%		26.7	%

Conference Call Information

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

All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID 5496039. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

Company Information

Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s 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 Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank 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 Company’s 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 Company’s future results, financial condition and liquidity, see Item 8.01 of the Company’s Report on Form 8-K dated April 30, 2020 and “Risk Factors” in Part I, Item 1A of the Company’s 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 Company’s 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 share amounts)	3/31/20		3/31/19		% Change			12/31/19			% Change
Revenues:
Commissions	$	211,098	$	155,449		35.8		$	183,144			15.3
Principal transactions		138,666		104,032		33.3			106,408			30.3
Brokerage revenues		349,764		259,481		34.8			289,552			20.8

Advisory fees		76,072		104,890		(27.5	)		155,331			(51.0	)
Capital raising		103,396		56,950		81.6			121,843			(15.1	)
Investment banking		179,468		161,840		10.9			277,174			(35.3	)
Asset management and service fees		237,775		195,267		21.8			223,969			6.2
Other income		9,207		12,209		(24.6	)		17,917			(48.6	)
Operating revenues		776,214		628,797		23.4			808,612			(4.0	)
Interest revenue		161,177		191,071		(15.6	)		167,087			(3.5	)
Total revenues		937,391		819,868		14.3			975,699			(3.9	)
Interest expense		24,357		49,448		(50.7	)		31,448			(22.5	)
Net revenues		913,034		770,420		18.5			944,251			(3.3	)

Non-interest expenses:
Compensation and benefits		577,179		458,114		26.0			566,981			1.8
Occupancy and equipment rental		66,073		58,862		12.3			64,327			2.7
Communication and office supplies		41,124		35,697		15.2			39,845			3.2
Commissions and floor brokerage		14,842		10,956		35.5			11,505			29.0
Provision for loan losses		18,978		2,283		731.3			4,412			330.1
Other operating expenses		79,732		66,699		19.5			94,588			(15.7	)
Total non-interest expenses		797,928		632,611		26.1			781,658			2.1
Income before income taxes		115,106		137,809		(16.5	)		162,593			(29.2	)
Provision for income taxes		28,517		38,370		(25.7	)		31,925			(10.7	)
Net income		86,589		99,439		(12.9	)		130,668			(33.7	)
Net income/(loss) applicable to non-controlling interests		—		232	n/m				(22	)	n/m
Net income applicable to Stifel Financial Corp.		86,589		99,207		(12.7	)		130,690			(33.7	)
Preferred dividends		4,844		2,344		106.7			4,843		n/m
Net income available to common shareholders	$	81,745	$	96,863		(15.6	)	$	125,847			(35.0	)
Earnings per common share:
Basic	$	1.15	$	1.35		(14.8	)	$	1.79			(35.8	)
Diluted	$	1.07	$	1.22		(12.3	)	$	1.62			(34.0	)

Cash dividends declared per common share	$	0.17	$	0.15		13.3		$	0.15			13.3

Weighted average number of common shares outstanding:
Basic		71,286		71,700		(0.6	)		70,470			1.2
Diluted		76,619		79,210		(3.3	)		77,813			(1.5	)

Summary Segment Results (Unaudited)
	Three Months Ended
($ in 000s)	3/31/20			3/31/19			% Change			12/31/19			% Change
Net revenues:
Global Wealth Management	$	582,956		$	510,610			14.2		$	552,945			5.4
Institutional Group		332,238			261,286			27.2			391,907			(15.2	)
Other		(2,160	)		(1,476	)		(46.3	)		(601	)		(259.4	)
Total net revenues	$	913,034		$	770,420			18.5		$	944,251			(3.3	)

Operating expenses:
Global Wealth Management	$	388,789		$	316,120			23.0		$	356,650			9.0
Institutional Group		290,498			229,082			26.8			336,366			(13.6	)
Other		118,641			87,409			35.7			88,642			33.8
Total operating expenses	$	797,928		$	632,611			26.1		$	781,658			2.1

Operating contribution:
Global Wealth Management	$	194,167		$	194,490			(0.2	)	$	196,295			(1.1	)
Institutional Group		41,740			32,204			29.6			55,541			(24.8	)
Other		(120,801	)		(88,885	)		35.9			(89,243	)		35.4
Income before income taxes	$	115,106		$	137,809			(16.5	)	$	162,593			(29.2	)

As a percentage of net revenues:
Compensation and benefits
Global Wealth Management		51.2			48.5						49.7
Institutional Group		62.0			61.0						63.7
Non-comp. operating expenses
Global Wealth Management		15.5			13.4						14.8
Institutional Group		25.4			26.7						22.1
Income before income taxes
Global Wealth Management		33.3			38.1						35.5
Institutional Group		12.6			12.3						14.2
Consolidated pre-tax margin		12.6			17.9						17.2

Financial metrics (unaudited):	As of and For the Three Months Ended
($ in 000s, except percentages and per share amounts)	3/31/20			3/31/19			12/31/19
Total assets	$	25,896,006		$	24,183,559		$	24,610,225
Total Stifel Financial shareholders’ equity		3,470,326			3,376,623			3,614,791
Book value per common share ⁽⁷⁾	$	46.13		$	43.18		$	48.37
Return on common equity ⁽⁸⁾		10.0	%		12.7	%		15.6	%
Non-GAAP return on common equity ^{(2) (8)}		11.2	%		13.7	%		18.2	%
Return on tangible common equity ⁽¹⁾		17.4	%		21.2	%		27.0	%
Non-GAAP return on tangible common equity ^{(1) (2)}		19.5	%		22.8	%		31.4	%
Tier 1 common capital ratio ⁽⁹⁾		14.3	%		15.9	%		15.2	%
Tier 1 risk based capital ratio ⁽⁹⁾		16.6	%		18.5	%		17.6	%
Tier 1 leverage capital ratio ⁽⁹⁾		9.6	%		9.8	%		10.0	%
Pre-tax margin on net revenues		12.6	%		17.9	%		17.2	%
Non-GAAP pre-tax margin on net revenues ^{(2) (3)}		14.1	%		19.0	%		20.5	%
Effective tax rate		24.8	%		27.9	%		19.6	%
Non-GAAP effective tax rate ⁽²⁾		24.8	%		26.7	%		22.0	%

Statistical Information (unaudited):	As of and For the Three Months Ended
($ in 000s, except financial advisors and locations)	3/31/20		3/31/19		% Change			12/31/19		% Change
Financial advisors		2,130		2,061		3.3			2,127		0.1
Independent contractors		94		99		(5.1	)		95		(1.1	)
Total financial advisors		2,224		2,160		3.0			2,222		0.1
Locations		447		407		9.8			446		0.2
Total client assets	$	276,627,000	$	299,993,000		(7.8	)	$	329,495,000		(16.0	)
Fee-based client assets	$	93,633,000	$	99,579,000		(6.0	)	$	117,189,000		(20.1	)
Client money market and insured product	$	17,234,000	$	14,928,000		15.4		$	14,841,000		16.1
Secured client lending ⁽¹⁰⁾	$	3,148,790	$	3,175,240		(0.8	)	$	3,363,450		(6.4	)

	Asset Management and Service Fee Break-down (unaudited)
Asset Management and Service Fee Revenues:	Three Months Ended
($ in 000s)	3/31/20			3/31/19			% Change			12/31/19			% Change
Private Client Group ⁽¹¹⁾	$	193,260		$	148,092			30.5		$	177,987			8.6
Asset Management		29,762			28,469			4.5			31,653			(6.0	)
Third-party Bank Sweep Program		3,308			8,562			(61.4	)		3,821			(13.4	)
Other ⁽¹²⁾		11,445			10,144			12.8			10,508			8.9
Total asset management and service fee revenues	$	237,775		$	195,267			21.8		$	223,969			6.2

Fee-based Assets:	Three Months Ended
($ in millions)	3/31/20			3/31/19			% Change			12/31/19			% Change
Private Client Group ⁽¹¹⁾	$	80,617		$	73,553			9.6		$	92,110			(12.5	)
Asset Management		22,752			32,952			(31.0	)		36,525			(37.7	)
Elimination ⁽¹³⁾		(9,736	)		(6,926	)		40.6			(11,446	)		(14.9	)
Total fee-based assets	$	93,633		$	99,579			(6.0	)	$	117,189			(20.1	)

Individual Program Banks	$	1,491		$	1,875			(20.5	)	$	1,185			25.8

ROA (bps) ⁽¹⁴⁾
Private Client Group ⁽¹³⁾		83.9			89.6						83.6
Asset Management		38.0			34.6						34.7
Individual Program Banks		95.0			153.3						123.7

Consolidated Net Interest Income Analysis (Unaudited):

	Three Months Ended
	March 31, 2020								March 31, 2019							December 31, 2019
($ in millions, except percentages)	Average Balance		Interest Income/ Expense			Average Interest Rate			Average Balance		Interest Income/ Expense		Average Interest Rate			Average Balance		Interest Income/ Expense		Average Interest Rate
Interest-earning assets:
Cash and federal funds sold	$	931.8	$	3.7			1.58	%	$	1,124.9	$	7.8		2.78	%	$	805.7	$	3.6		1.80	%
Financial instruments owned		1,076.6		4.6			1.70			1,277.4		6.3		1.98			1,074.2		5.1		1.91
Margin balances		1,231.7		10.1			3.29			1,258.5		13.4		4.27			1,291.7		11.6		3.58
Investments:
Asset-backed securities		4,538.5		37.0			3.26			4,698.9		49.0		4.17			4,511.8		38.8		3.44
Mortgage-backed securities		1,094.2		6.0			2.18			1,531.4		9.0		2.35			987.9		5.1		2.06
Corporate fixed income securities		732.8		5.0			2.76			954.5		7.2		3.01			663.7		4.8		2.89
State and municipal securities		18.4		0.1			2.13			50.1		0.3		2.38			27.7		0.2		2.22
Other		3.9		—			2.17			—		—		—			4.5		—		2.02
Total Investments		6,387.8		48.1			3.01			7,234.9		65.5		3.62			6,195.6		48.9		3.16
Loans:
Commercial and industrial		3,560.3		38.0			4.27			3,419.8		40.8		4.78			3,380.0		36.9		4.37
Residential real estate		3,416.1		25.3			2.96			2,927.9		22.5		3.07			3,144.9		24.0		3.06
Securities-based loans		2,063.8		16.5			3.19			1,799.5		19.1		4.25			2,064.7		18.5		3.59
Commercial real estate		445.0		5.8			5.22			336.5		4.7		5.60			386.2		5.8		6.03
Loans held for sale		374.5		4.0			4.26			179.0		1.8		4.09			335.3		4.0		4.80
Other		500.1		5.6			4.46			319.0		4.4		5.36			503.4		6.1		4.75
Total Loans		10,359.8		95.2			3.67			8,981.7		93.3		4.15			9,814.5		95.3		3.88
Other interest-bearing assets		607.9		(0.5	)		(0.30	)		736.3		4.8		2.61			642.4		2.6		1.59
Total interest-earning assets/interest income		20,595.6		161.2			3.13			20,613.7		191.1		3.71			19,824.1		167.1		3.37
Interest-bearing liabilities:
Short-term borrowings		91.3		0.2			0.87			68.2		0.5		3.10			31.5		0.1		1.66
Senior notes		1,017.1		11.2			4.40			1,016.1		11.1		4.38			1,016.8		11.1		4.38
Deposits		15,377.9		9.6			0.25			15,282.3		28.1		0.73			14,672.8		13.6		0.37
FHLB		590.5		2.4			1.59			461.4		1.7		1.45			513.0		2.1		1.67
Other interest-bearing liabilities		1,628.1		1.0			0.26			1,588.3		8.0		2.03			1,595.6		4.5		1.12
Total interest-bearing liabilities/interest expense	$	18,704.9	$	24.4			0.52	%	$	18,416.3	$	49.4		1.07	%	$	17,829.7	$	31.4		0.71	%
Net interest income/margin			$	136.8			2.66	%			$	141.7		2.75	%			$	135.7		2.74	%

Stifel Bancorp, Inc. ⁽¹⁵⁾ Net Interest Income Analysis (Unaudited):

	Three Months Ended
	March 31, 2020							March 31, 2019							December 31, 2019
($ in millions, except percentages)	Average Balance		Interest Income/ Expense		Average Interest Rate			Average Balance		Interest Income/ Expense		Average Interest Rate			Average Balance		Interest Income/ Expense		Average Interest Rate
Interest-earning assets:
Cash and federal funds sold	$	446.0	$	1.2		1.10	%	$	732.6	$	4.6		2.49	%	$	255.7	$	1.2		1.83	%
Investments		6,387.8		48.1		3.01			7,234.9		65.5		3.62			6,195.6		48.9		3.16
Loans		10,359.8		95.2		3.67			8,981.7		93.3		4.15			9,814.5		95.3		3.88
Other interest-bearing assets		59.6		0.6		4.02			52.3		1.0		8.45			57.4		0.5		3.77
Total interest-earning assets/interest income		17,253.2		145.1		3.36			17,001.5		164.4		3.87			16,323.2		145.9		3.58
Interest-bearing liabilities:
Deposits		15,377.9		9.6		0.25			15,282.3		28.1		0.73			14,672.8		13.6		0.37
FHLB		590.5		2.4		1.59			461.4		1.7		1.45			513.0		2.1		1.67
Other interest-bearing liabilities		1.6		—		7.09			1.7		—		9.16			1.6		—		7.85
Total interest-bearing liabilities/interest expense	$	15,970.0		12.0		0.30	%	$	15,745.4		29.8		0.76	%	$	15,187.4		15.7		0.41	%
Net interest income/margin			$	133.1		3.09	%			$	134.6		3.17	%			$	130.2		3.19	%

Stifel Bancorp, Inc. ⁽¹⁵⁾ – a component of Global Wealth Management

Selected operating data (unaudited):	Three Months Ended
($ in 000s, except percentages)	3/31/20			3/31/19			% Change			12/31/19			% Change
Net interest income	$	133,131		$	134,564			(1.1	)	$	130,157			2.3
Bank loan loss provision		18,978			2,283			731.3			4,412			330.1
Charge-offs		20			56			(64.3	)		220			(90.9	)
Net interest margin		3.09	%		3.17	%	(8) bps				3.19	%	(10) bps

Financial Metrics (unaudited):	As of
($ in 000s, except percentages)	3/31/20			3/31/19			12/31/19
Total assets	$	18,442,914		$	16,822,599		$	16,941,877
Total shareholders’ equity		1,224,307			1,242,760			1,207,469
Total loans, net (includes loans held for sale)		10,565,287			8,850,905			10,013,735
Total deposits		16,880,933			15,049,877			15,332,581
Available-for-sale securities, at fair value		3,363,961			3,002,751			3,253,588
Held-to-maturity securities, at amortized cost		3,083,065			4,100,357			2,853,360
Commercial and industrial		3,813,862			3,314,564			3,438,953
Residential real estate		3,495,136			2,928,228			3,309,548
Securities-based loans		1,945,371			1,860,989			2,098,211
Commercial real estate		399,732			361,950			428,549
Loans held for sale		570,787			144,216			389,693
Stifel Bank & Trust:
Common equity tier 1 capital ratio ⁽⁹⁾		11.7	%		13.7	%		12.1	%
Tier 1 capital ratio ⁽⁹⁾		11.7	%		13.8	%		12.1	%
Total capital ratio ⁽⁹⁾		13.0	%		14.9	%		13.3	%
Tier 1 leverage ratio ⁽⁹⁾		7.1	%		7.1	%		7.1	%
Stifel Bank:
Common equity tier 1 capital ratio ⁽⁹⁾		15.6	%		17.5	%		16.9	%
Tier 1 capital ratio ⁽⁹⁾		15.6	%		17.5	%		16.9	%
Total capital ratio ⁽⁹⁾		16.5	%		18.6	%		18.0	%
Tier 1 leverage ratio ⁽⁹⁾		7.3	%		7.5	%		7.1	%

Credit Metrics:
Allowance for loan losses	$	102,802		$	88,172		$	95,579
Allowance as a percentage of retained loans		1.02	%		1.00	%		0.98	%
Net charge-offs as a percentage of average loans		0.00	%		0.00	%		0.00	%
Total nonperforming assets	$	14,616		$	21,276		$	14,748
Nonperforming assets as % of total assets		0.08	%		0.13	%		0.09	%

Global Wealth Management Summary Results of Operations (Unaudited)
	Three Months Ended
($ in 000s)	3/31/20		3/31/19		% Change			12/31/19		% Change
Revenues:
Commissions	$	136,897	$	109,927		24.5		$	129,129		6.0
Principal transactions		42,982		43,267		(0.7	)		44,871		(4.2	)
Brokerage revenues		179,879		153,194		17.4			174,000		3.4

Asset management and service fees		237,760		195,253		21.8			223,952		6.2
Net interest		138,682		145,295		(4.6	)		138,060		0.5
Investment banking ⁽¹⁶⁾		10,333		8,223		25.7			9,278		11.4
Other income		16,302		8,645		88.6			7,655		113.0
Net revenues		582,956		510,610		14.2			552,945		5.4
Non-interest expenses:
Compensation and benefits		298,370		247,473		20.6			274,954		8.5
Non-compensation operating expenses		90,419		68,647		31.7			81,696		10.7
Total non-interest expenses		388,789		316,120		23.0			356,650		9.0
Income before income taxes	$	194,167	$	194,490		(0.2	)	$	196,295		(1.1	)

As a percentage of net revenues:
Compensation and benefits		51.2		48.5					49.7
Non-compensation operating expenses		15.5		13.4					14.8
Income before income taxes		33.3		38.1					35.5

Institutional Group Summary Results of Operations (Unaudited)
	Three Months Ended
($ in 000s)	3/31/20			3/31/19		% Change			12/31/19		% Change
Revenues:
Commissions	$	74,198		$	45,522		63.0		$	54,015		37.4
Principal transactions		95,685			60,765		57.5			61,537		55.5
Brokerage revenues		169,883			106,287		59.8			115,552		47.0
Advisory fees		76,053			104,895		(27.5	)		155,331		(51.0	)
Capital raising		93,082			48,722		91.0			112,565		(17.3	)
Investment banking		169,135			153,617		10.1			267,896		(36.9	)
Other ⁽¹⁷⁾		(6,780	)		1,382		(590.6	)		8,459		(180.2	)
Net revenues		332,238			261,286		27.2			391,907		(15.2	)
Non-interest expenses:
Compensation and benefits		205,988			159,411		29.2			249,574		(17.5	)
Non-compensation operating expenses		84,510			69,671		21.3			86,792		(2.6	)
Total non-interest expenses		290,498			229,082		26.8			336,366		(13.6	)
Income before income taxes	$	41,740		$	32,204		29.6		$	55,541		(24.8	)

As a percentage of net revenues:
Compensation and benefits		62.0			61.0					63.7
Non-compensation operating expenses		25.4			26.7					22.1
Income before income taxes		12.6			12.3					14.2

Non-GAAP Financial Measures

The Company utilized certain non-GAAP calculations as additional measures to aid in understanding and analyzing the Company’s financial results for the three months ended March 31, 2020, March 31, 2019, and December 31, 2019. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company’s core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company’s results in the current period to those in prior and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance. 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 Company’s 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 Company’s 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, 2020, March 31, 2019, and December 31, 2019 to net income and earnings per diluted common share on a non-GAAP basis for the same period.

	Three Months Ended
($ in 000s)	3/31/20			3/31/19			12/31/19
GAAP net income applicable to Stifel Financial Corp.	$	86,589		$	99,207		$	130,690
Preferred dividend		4,844			2,344			4,843
Net income available to common shareholders		81,745			96,863			125,847

Non-GAAP adjustments:
Merger-related and severance ⁽¹⁸⁾		13,510			8,191			31,442
Provision for income taxes ⁽¹⁹⁾		(3,322	)		(534	)		(10,690	)
Total non-GAAP adjustments		10,188			7,657			20,752
Non-GAAP net income available to common shareholders	$	91,933		$	104,520		$	146,599

Weighted average diluted shares outstanding		76,619			79,210			77,813

GAAP earnings per diluted common share	$	1.13		$	1.25		$	1.68
Non-GAAP adjustments		0.13			0.10			0.27
Non-GAAP earnings per diluted common share	$	1.26		$	1.35		$	1.95

GAAP earnings per diluted common share available to common shareholders	$	1.07		$	1.22		$	1.62
Non-GAAP adjustments		0.13			0.10			0.26
Non-GAAP earnings per diluted common share available to common shareholders	$	1.20		$	1.32		$	1.88

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 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 $41.4 million, $47.2 million, and $46.5 million, as of March 31, 2020 and 2019, and December 31, 2019, respectively. Historical periods have been restated to conform with the current period presentation.

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Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures.”

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Non-GAAP pre-tax margin for the three months ended March 31, 2020 of 14.1% is calculated by adding non-GAAP adjustments of $13.5 million to our GAAP income before income taxes of $115.1 million and dividing it by non-GAAP net revenues for the quarter of $913.2 million. Reconciliations of the Company’s GAAP results to certain non-GAAP measures is discussed within and under “Non-GAAP Financial Measures.”

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Excludes revenue included in the Other segment.

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See further discussion of non-GAAP adjustments under “Non-GAAP Financial Measures.”

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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 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.

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Book value per common share represents shareholders’ equity (excluding preferred stock and non-controlling interests) divided by period end common shares outstanding.

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Annualized return on average common shareholders’ equity (“ROE”) is calculated by dividing annualized net income applicable to common 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.

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Capital ratios are estimates at time of the Company’s earnings release.

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Includes client margin balances held by our broker-dealer subsidiaries and securities-based loans held at our bank subsidiaries.

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Includes Private Client Group and Trust Business.

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Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees.

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Asset management assets managed in Private Client Group or Trust accounts.

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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.

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Includes Stifel Bank & Trust, Stifel Bank, and Stifel Trust Company, N.A.

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Includes capital raising and advisory fees.

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Includes net interest, asset management and service fees, and other income.

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Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards and 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.

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See details of non-GAAP adjustments under “Provision for Income Taxes.”

1st Quarter 2020 Financial Results Presentation April 30, 2020 Exhibit 99.2

INDIVIDUAL CLIENTS & COMMUNITIES Firm, executive, and leadership support of international, national, and neighborhood organizations supporting health and wellness, frontline workers, and economic relief to those impacted by the pandemic Ongoing delivery of investment advice in rapidly changing environment; client communication and conference calls with CIO Office; thought leadership; messaging to clients and associates, etc. Digital account access across business lines – clients access assets, cash, loans, research, and advisor online and through mobile apps Consultative conversations with clients via phone and video Responding to COVID-19 Associates Maintained continuous communications with our associates Committed to supporting our human capital – our associates – through pandemic Expanded access to wellness and healthcare remotely Supporting associates technical needs and factors of working from home Continuing to hire new associates and maintaining commitments to advisor recruits in hiring process Implementing plans to move minimum hourly pay levels in the majority of U.S. markets ranging from $15-20 per hour Honoring the full financial commitment to summer interns who will have a truncated experience Maintaining commitments to vendor partners INFRASTRUCTURE & response MANAGEMENT Active business continuity and disaster response team implemented pre-tested contingency plans with very little disruption Rolling implementation of quarantine in coordination with national and local jurisdictional guidance Maintaining critical business functions Video meeting capabilities for remote teams across business lines and geography Expanded trading from offices 8 major cities in Europe and North America to 183 locations without losing connectivity, functionality, and efficiency Nimble: Stifel’s ability to react and respond to changing business environment Small business, commercial & Institutional Clients Stood up solution to provide clients access to CARES Act resources including Paycheck Protection Program (PPP) loans from the SBA Committed up to $1 billion in PPP loan financing Extended $241 million to commercial clients through loan draws COVID-19 series of Reports and Surveys from Research department and leading experts Providing liquidity to clients through a strong and stable platform Bookrunner on $55.5 billion in capital for clients through debt and equity markets in 1Q20

Global Wealth Management Continues Profitable Growth First Quarter Snapshot 1Q20 Results millions, except per share and ratios HIGHLIGHTS NET REVENUES GAAP $913.0 NON-GAAP $913.2 NET EARNINGS GAAP $81.7 NON-GAAP $91.9 EPS GAAP $1.07 NON-GAAP $1.20 ANNUALIZED ROE GAAP 10.0% NON-GAAP 11.2% ANNUALIZED ROTCE GAAP 17.4% NON-GAAP 19.5% BOOK VALUE PER SHARE $46.13 Diversity of Institutional Group Drives Second Highest Quarterly Revenue Credit Quality at Stifel Bank Remains Strong Named Investment Bank of the Year by Mergers & Acquisitions Magazine Continued to Attract High Quality Financial Advisors Record Equity & Fixed Income Brokerage Revenue

FINANCIAL RESULTS millions 1Q20 VS 1Q19 Global Wealth Management $ 583 14% Institutional 332 27% Other (2) - Net revenues 913 19% Compensation expense1 539 19% Operating expense 195 16% Earnings before special items 179 21% Provision for loan loss 19 731% Additional compensation accrual2 32 - Pre-tax income 129 -12% Taxes 32 -18% Net income 97 -9% Preferred dividends 5 107% Net income available to common shareholders 92 -12% Diluted EPS $ 1.20 -9% Compensation ratio 62.5% 350 bps Non-compensation ratio 23.4% 130 bps Pre-tax provision margin 16.1% -310 bps Pre-tax operating margin 14.1% -490 bps Book value per share 46.13 7% Tangible book value per share 26.58 >1% ROTCE 19.5% -330 bps First Quarter Results FIRST QUARTER HIGHLIGHTS Record Revenue First quarter Non-GAAP Net Revenue of $913 million, up 19% Y/Y. Global Wealth Management Net Revenue of $583 million, up 14% Y/Y. Asset Management & Service Fees of $238 million, up 22% Y/Y Institutional Equity Brokerage Revenue of $70 million, up 81% Y/Y Institutional Fixed Income Brokerage Revenue of $100 million, up 48% Y/Y Repurchased 1.1 million share of common stock at an average price of $49.74 Non-GAAP annualized return on average tangible common shareholders’ equity was 19.5% The Board of Directors declared a $0.17 quarterly dividend per share, an increase of 13% from the prior quarter 1 Before provision for loan loss and additional comp. 2 Amount in excess of 59%

GLOBAL WEALTH MANAGEMENT REVENUE millions 1Q20 VS 1Q19 Brokerage $ 180 17% Asset Management & Service Fees 238 22% Investment Banking 10 26% Net Interest 139 -5% Other 16 89% Total Global Wealth Management Net Revenues $ 583 14% Comp. Ratio 51.2% 270 bps Non-Comp. Ratio 15.5% 210 bps Provision for loan loss $19 731% Pre-tax Pre-provision Margin 36.1% -240 bps Pre-tax Margin 33.3% -480 bps Financial Advisor & Client Asset Metrics millions 1Q20 VS 1Q19 Financial Advisors 2,130 3% Independent Contractors 94 -5% Total Financial Advisors 2,224 3% Client AUA $ 276,627 -8% Fee-based Client Assets 93,633 -6% Private Client Fee-based Client Assets 80,617 10% HIGHLIGHTS Record Net Revenue of $583 million, up 14% Y/Y Record Brokerage Revenue of $180 million, up 17% Y/Y Record Asset Management & Service Fees of $238 million, up 22% Y/Y Recruited 26 Financial Advisor with total Trailing Twelve Month production of $20 million. Completed Sale of Ziegler Capital Management LLC, which reduced Fee-based Client Assets by $9 billion as of March 31, 2020 Global Wealth Management

Wealth Management Metrics EFFICIENT BUSINESS MODEL Advisors are empowered to do what is right for their clients Product-neutral compensation – not motivated by comp to use specific products or services Product desks are not layered profit centers Minimal management – supervisory function is centralized for efficiency and neutral approach Advisors have direct access to knowledgeable home office associates to collaboratively deliver services to clients Technology to support advice-based model Stifel Wealth Tracker – online and mobile app: / free/ secure / smart aggregation / budgeting tools / advice when you want it / understand the markets / understand your complete financial picture Performance reporting tools – enhanced platform-wide capabilities with key vendor partners collaborating Cash management and digital banking capabilities in WM platform, including client mobile app Video meetings, centralized technology support DYNAMIC BUSINESS 85% of FAs joined Stifel in past 10 years came through organic recruiting, 15% through acquisitions Recruiting remotely during pandemic Growth of average AUM Adding capabilities that attract FAs and differentiate Stifel Stifel Wealth Tracker CIO Office & behavioral finance practice OurCrowd access to early-stage venture sponsors

Institutional Revenue millions 1Q20 VS 1Q19 Advisory $ 76 -27% Capital Raising 93 91% Brokerage 170 60% Total Institutional Revenue1 $ 332 27% Comp. Ratio 62.0% 100 bps Non-Comp. Ratio 25.4% -130 bps Pre-tax Margin 12.6% 30 bps NET REVENUE AND MARGIN Institutional Group 1 Includes net interest, asset management and service fees, and other income HIGHLIGHTS Second Strongest Quarterly Revenue of $332 million, up 27% Y/Y Record Institutional Brokerage of $170 million, up 60% Y/Y Capital Markets Revenue of $93 million, up 91% Y/Y First full quarter contributions from MainFirst & GMP Pre-tax margin of 12.6%, up 30 bps Y/Y Balanced business mix between equities and fixed income Research Largest U.S. Equity Research platform, Largest Global Small Cap Platform, & 9th Largest Global Provider of Research Coverage (Stifel & KBW) 2,069 global stocks under coverage with 152 analysts across 15 sectors Top 10 global subsector coverage in: Consumer, Energy, Financials, Healthcare, Industrials, Technology, & Transportation Stifel ranked #1 Broker for North American Non-Deal Roadshows in 2019 (IR Magazine) During the quarter, Stifel/KBW global research published over 350 multi-company COVID-19 related notes. Over 300,000 total reads, top 10 notes averaging over 4,900 reads-term” and “Long-term” shopping list publications have had almost 3,500 and over 10,000 hits, respectively.

Institutional FIXED INCOME Revenue millions 1Q20 VS 1Q19 Brokerage $ 100 48% Capital Raising 33 58% Total Fixed Income $ 133 50% highlights Record Brokerage Revenue Surpassed Prior Record by 19% (1Q16) Activity Levels in April down from March but Tracking Higher than 2Q19 Lead Managed 167 Negotiated Municipal Offerings Institutional Equities & Fixed Income Institutional Equities TABLE Institutional EQUITIES Revenue millions 1Q20 VS 1Q19 Brokerage $ 70 81% Capital Raising 60 116% Total Equities $ 130 95% highlights Brokerage Revenue Surpassed Prior Record by 4% (4Q14) Activity levels in April down from March & More inline with Prior Expectations Third Highest Capital Raising Quarter Despite Market Volatility

INVESTMENT BANKING REVENUE millions 1Q20 VS 1Q19 Capital raising: Equity $ 64,774 98% Debt 38,622 60% Total capital raising 103,396 82% Advisory fees 76,072 -28% Total investment banking revenue $ 179,468 11% Investment Banking Revenue Highlights On record revenue pace through February Strongest Verticals were Healthcare, Industrials, and Financials Completed two 144A offerings Increased engagement for Miller Buckfire through existing Stifel relationships Expanding expertise across geographies and sectors – healthcare, technology, software, KBW, and innovation community by Mergers & Acquisitions Magazine

CONDENSED NET INTEREST INCOME 1Q20 Y/Y Change Average Balance Average Interest Rate Average Balance Average Interest Rate Interest-bearing cash & fed funds sold $ 932 1.58% -17% -120 bps Investment Portfolio 6,388 3.01% -12% -61 bps Loans 10,360 3.67% 15% -48 bps Total interest-interest earning assets $ 20,596 3.13% 0% -58 bps Deposits 15,378 0.25% 1% -48 bps Other interest-bearing liabilities 3,327 1.78% 6% -95 bps Total liabilities $ 18,705 0.52% 2% -55 bps Net interest income 2.66% Net Interest Income Net Interest commentary 1Q20 NII comes in within previous guidance range, but negatively impacted by rate environment Interest Earning Asset were flat year-on-year but increased sequentially due to higher cash & loan balances 2Q20 Guidance: NII Guidance: $115 – 125 million NIM Guidance: 255 – 265 bps NET INTEREST INCOME

CLO BY MAJOR SECTOR Healthcare & Pharmaceuticals 10.67% High Tech Industries 9.62% Services: Business 8.13% Banking, Finance, Insurance & Real Estate 7.39% Telecommunications 5.41% Media: Broadcasting & Subscription 4.80% Hotel, Gaming & Leisure 4.48% Services: Consumer 3.64% Chemicals, Plastics & Rubber 3.57% Beverage, Food & Tobacco 3.42% Construction & Building 3.25% Capital Equipment 3.07% INVESTMENT PORTFOLIO millions Total Portfolio % of Portfolio CLOs $ 4,399 67.20% Agency MBS 807 12.33% Corporate Bonds 741 11.32% SBA 306 4.67% Student Loan ARS 156 2.38% CMBS 108 1.65% Other 29 0.44% Total $ 6,546 100.00% HIGHLIGHTS AAA /AA CLOs with a Portfolio Credit Enhancement of 28.7% 87% of CLO Collateral is BB/B Using Severely Adverse Default Expectations Results in Remaining Credit Enhancement of 17.1% Limited Exposure to Hotel, Gaming, & Leisure and Energy Verticals Investment Portfolio & CLOs

LOAN PORTFOLIO millions 1Q20 %of Total Portfolio Residential Real Estate $ 3,495 34.41% Securities Based Lending 1,945 19.15% Home equity lines of credit 57 0.57% Other loans 31 0.30% Unsecured 2 0.02% Total Consumer $ 5,531 54.45% Commercial Real Estate 400 3.94% Commercial 3,814 37.55% Construction and land 412 4.06% Total Commercial $ 4,626 45.55% Total Loan Portfolio 10,157 100% Unfunded Commitments $ 1,423 14% Total1 $ 11,580 HIGHLIGHTS Lending facilities for Stifel WM and Institutional clients, as well as banking relationships outside of Stifel Over 50% of the loan portfolio is to Wealth Management clients Diversity of geographic, sector, business phase, and loan type enhances stability in various markets; low NPLs historically Limited exposure to the Energy Industry as well as to the Hotel, Leisure, Entertainment & Restaurant Industry which on a combined basis is less than 5% of our SBI loans. Stifel Bancorp Inc. Loan Portfolio COMMERCIAL PORTFOLIO BY SECTOR Industrials $721 7.10% Financials $563 5.54% Information Technology $529 5.21% Consumer Discretionary $516 5.08% Hotel, Leisure, Entertainment, Restaurants $465 4.58% Materials $269 2.65% Consumer Staples $265 2.61% REITs $246 2.42% Health Care $171 1.68% Telecom Services $51 0.50% Energy, Utilities $19 0.19% Total $3,814 37.55% 1 Total excludes $571 million of loans classified as held for sale

CECL Impact assumptions Moody’s forecast: 40% Baseline (sudden sharp recession) 30% Downside (double dip recession) 30% Upside (near term growth) Forecast update for most recent scenarios Includes significant economic shock in 2Q and 3Q, followed by slow, sustained recovery Reserve build driven by COVID-19 recessionary assumptions Portfolio ALL 12/31/2019 CECL Adoption - Opening BS Adj. 1/1/2020 Q1'20 Portfolio Activity Q1'20 Economic Factors CECL Reserve 3/31/2020 CECL Reserve %1 Total $ 97,123,079 $ 10,378,707 $ 1,946,808 $ 14,254,599 $ 123,684,780 1.21% CECL 1Q20 FACTORS 1 CECL Loan Loss Reserve: Consumer 0.43% Commercial 1.52%

NON-GAAP EXPENSES & PRE-TAX INCOME millions 1Q20 VS 1Q19 Compensation $ 571 26% Ex. IB gross up & loan loss provision 187 18% Provision and IB gross up 27 141% Non-compensation 214 26% Pre-tax Income $ 129 -12% GAAP to Non-GAAP Reconciliation for 1Q2020 millions 03/31/20 GAAP Net Income $ 86,589 Preferred Dividend 4,844 Net Income available to common Shareholders $ 81,745 Total Non-GAAP Adjustments, after tax $ 10,188 Non-GAAP Net Income Available to Common Shareholders $ 91,933 Expenses * For reconciliation of GAAP to non-GAAP expenses, refer to our first quarter 2020 earnings release. 62.5%

Capital & Liquidity Millions HIGHLIGHTS Significant Increase in Sweep Balances During 1Q20 Balance Sheet Growth due to Higher Cash Balances and Loan Draws No longer Projecting any Further Balance sheet Growth in 2Q20 Expect Tier 1 Leverage Ratio to trend back to 10% in future quarters

Q&A

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. All statements not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements 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 Company’s future results, financial condition and liquidity, see Item 8.01 of the Company’s Report on Form 8-K dated April 30, 2020 and “Risk Factors” in Part I, Item 1A of the Company’s 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 Company’s 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. Use of Non-GAAP Financial Measures The Company utilized certain non-GAAP calculations as additional measures to aid in understanding and analyzing the Company’s financial results for the three months ended 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 Company’s core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company’s results in the current period to those in prior and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors' overall understanding of the Company’s current financial performance. 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 ongoing 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 Company’s 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 Company’s financial performance should be considered together.