Stifel Reports Fourth Quarter and Full-Year 2012 Financial Results

Stifel Reports Fourth Quarter and Full-Year 2012 Financial Results 
17th Consecutive Year of Record Net Revenues 
ST. LOUIS, MO -- (Marketwire) -- 02/25/13 --  Stifel Financial Corp.
(NYSE: SF) 
Financial highlights for the three months ended December 31, 2012: 


 
--  Record revenues of $426.4 million.
--  Net revenues of $417.8 million.
--  Net income of $40.0 million, or $0.63 per diluted share.
--  Stockholders' equity was $1.49 billion and book value per share was
    $27.24.

  
Financial highlights for the year ended December 31, 2012: 


 
--  Record net revenues of $1.61 billion increased 14% from 2011.
--  Record net income of $138.6 million, or $2.20 per diluted share.

  
Stifel Financial Corp. (NYSE: SF) today reported net income of $40.0
million, or $0.63 per diluted share, on net revenues of $417.8
million for the three months ended December 31, 2012, compared with
net income of $27.0 million, or $0.43 per diluted share, on net
revenues of $356.9 million for the fourth quarter of 2011. The
results for the three months ended December 31, 2012 were impacted by
gains recognized on the Company's investment in Knight Capital Group,
Inc. offset by merger-related and other unusual expenses. The
after-tax impact of these items was a gain of $0.02 per diluted
share. 
For the year ended December 31, 2012, the Company reported record net
income of $138.6 million, or $2.20 per diluted share, on record net
revenues of $1.61 billion, compared with net income of $84.1 million,
or $1.33 per diluted share(1), on net revenues of $1.4 billion during
the comparable period in 2011. 
"2012 represented Stifel's 17th consecutive year of record net
revenues. This is a significant accomplishment, particularly given
past market cycles. We remain focused on our goal of delivering
superior client services, which has benefitted all Stifel
constituents: clients, shareholders, and associates," said Ronald J.
Kruszewski, Chairman, President and CEO of Stifel.  
Kruszewski continued, "Our fourth quarter results finished the year
with record revenues. Both segments, Global Wealth Management and
Institutional Group, reflected strong underlying performance, even in
light of the political and economic uncertainty in the quarter. We
continue to selectively add t
alented professionals to expand our
product offerings and gain market share. At the end of last year, we
acquired Miller Buckfire, a preeminent franchise in restructuring
advisory, and most recently our merger with KBW, a leading financial
services investment bank. As we have done in the past, we will
continue to position Stifel to take advantage of opportunities." 


 
                                                                            
                  Summary Results of Operations (Unaudited)                 
----------------------------------------------------------------------------
                                           Three Months Ended               
                              --------------------------------------------  
(in 000s)                     12/31/12 12/31/11 % Change  9/30/12 % Change  
                              -------- -------- -------- -------- --------  
  Net revenues                $417,830 $356,878     17.1 $420,080     (0.5) 
  Net income                  $ 39,954 $ 27,016     47.9 $ 37,710      6.0  
Earnings per share:                                                         
  Basic                       $   0.74 $   0.52     42.3 $   0.70      5.8  
  Diluted                     $   0.63 $   0.43     46.5 $   0.60      5.0  
                                                                            
Weighted average number of common shares outstanding:                       
  Basic                         53,835   51,849      3.9   53,601      0.5  
  Diluted                       63,301   62,695      1.0   63,054      0.4  
                                                                            
                                                                            
 
                                               Year Ended           
                                     ------------------------------ 
        (in 000s)                     12/31/12   12/31/11  % Change 
                                     ---------- ---------- -------- 
          Net revenues               $1,612,650 $1,416,562     13.8 
          Net income                 $  138,573 $   84,134     64.7 
        Earnings per share:                                         
          Basic                      $     2.59 $     1.61     60.9 
          Diluted                    $     2.20 $     1.33     65.4 
                                                                    
        Weighted average number of                                  
         common shares outstanding:                                 
          Basic                          53,563     52,418      2.2 
          Diluted                        62,937     63,058     (0.2)

 
Business Segment Results 


 
                     Summary Segment Results (Unaudited)                    
----------------------------------------------------------------------------
                                         Three Months Ended                 
                          ------------------------------------------------  
(in 000s)                 12/31/12  12/31/11  % Change   9/30/12  % Change  
                          --------  --------  --------  --------  --------  
Net revenues:                                                               
  Global Wealth                                                             
   Management             $255,084  $224,569      13.6  $251,728       1.3  
  Institutional Group (2)  165,056   134,229      23.0   169,679      (2.7) 
  Other                     (2,310)   (1,920)    (20.3)   (1,327)    (74.1) 
                          --------  --------  --------  --------  --------  
                          $417,830  $356,878      17.1  $420,080      (0.5) 
                          --------  --------  --------  --------  --------  
Pre-tax operating income:                                                   
  Global Wealth                                                             
   Management             $ 69,282  $ 62,872      10.2  $ 68,370       1.3  
  Institutional Group (2)   21,490    10,773      99.5    33,427     (35.7) 
  Other (3)                (29,705)  (28,619)      3.8   (40,120)    (26.0) 
                          --------  --------  --------  --------  --------  
                          $ 61,067  $ 45,026      35.6  $ 61,677      (1.0) 
                          --------  --------  --------  --------  --------  
                                                                            
 
                                             Year Ended            
                                  -------------------------------- 
         (in 000s)                 12/31/12    12/31/11   % Change 
                                  ----------  ----------  -------- 
         Net revenues:                                             
           Global Wealth                                           
            Management            $  995,189  $  908,158       9.6 
           Institutional Group (2)   618,536     507,397      21.9 
           Other                      (1,075)      1,007    (206.8)
   
                               ----------  ----------  -------- 
                                  $1,612,650  $1,416,562      13.8 
                                  ----------  ----------  -------- 
         Pre-tax operating income:                                 
           Global Wealth                                           
            Management            $  268,183  $  235,382      13.9 
           Institutional Group (2)    96,167      63,269      52.0 
           Other (3)                (138,478)   (160,043)    (13.5)
                                  ----------  ----------  -------- 
                                  $  225,872  $  138,608      63.0 
                                  ----------  ----------  -------- 

 
Fourth Quarter 
Global Wealth Management 
For the quarter ended December 31, 2012, the Global Wealth Management
("GWM") segment generated pre-tax operating income of $69.3 million,
compared with $62.9 million in the fourth quarter of 2011 and $68.4
million in the third quarter of 2012. Net revenues for the quarter
were $255.1 million, compared with $224.6 million in the fourth
quarter of 2011, and $251.7 million in the third quarter of 2012. The
increase in net revenues over the comparable period in 2011 is
primarily attributable to: (1) growth in asset management and service
fees as a result of an
 increase in client assets and positive gains
in market performance; (2) growth in commissions revenues; (3) higher
sales credits from investment banking underwritings; and (4)
increased net interest revenues as a result of the growth of net
interest-earning assets at Stifel Bank. The increase in net revenues
from the third quarter of 2012 was primarily attributable to: (1)
growth in asset management and service fees as a result of an
increase in client assets and positive gains in market performance;
and (2) growth in commissions revenue, offset by (1) a decrease in
principal transactions revenues; (2) reduced sales credits from
investment banking underwritings; and (3) lower net interest
revenues. 


 
--  The Private Client Group reported net revenues of $232.5 million, a
    13% increase compared with the fourth quarter of 2011 and a 1%
    increase compared with the third quarter of 2012.
--  Stifel Bank reported net revenues of $22.6 million, a 16% increase
    compared with the fourth quarter of 2011 and a 1% increase compared
    with the third quarter of 2012.

  
Institutional Group 
For the quarter ended December 31, 2012, the Institutional Group
segment generated pre-tax operating income of $21.5 million, compared
with $10.8 million in the fourth quarter of 2011 and $33.4 million in
the third quarter of 2012. Net revenues for the quarter were $165.1
million, compared with $134.2 mil
lion in the fourth quarter of 2011
and $169.7 million in the third quarter of 2012. The increase in net
revenues from the comparable period in 2011 was driven by: (1) an
increase in equity and fixed income capital raising revenues; (2)
higher fixed income and equity institutional brokerage revenues; and
(3) the realized and unrealized gains recognized on the Company's
investment in Knight Capital Group, Inc. Offsetting these increases
was a decrease in advisory fees. The decrease in net revenues from
the third quarter of 2012 was primarily attributable to: (1) a
decrease in unrealized gains recognized on the Company's investment
in Knight Capital Group, Inc. The decrease was offset by: (1) an
increase in fixed income and equity capital raising revenues; and (2)
an increase in equity institutional brokerage revenues. 
Institutional brokerage revenues were $84.2 million, a 5% increase
compared with the fourth quarter of 2011 and a 2% increase compared
with the third quarter of 2012.  


 
--  Equity brokerage revenues were $41.8 million, a 3% increase compared
    with the fourth quarter of 2011 and a 10% increase compared with the
    third quarter of 2012.
--  Fixed income brokerage revenues were $42.4 million, a 7% increase
    compared with the fourth quarter of 2011 and a 5% decrease compared
    with the third quarter of 2012.

  
Investment banking revenues were $64.9 million, a 25% increas
e compared
with the fourth quarter of 2011 and a 9% increase compared with the
third quarter of 2012.  


 
--  Equity capital raising revenues were $19.8 million, a 96% increase
    compared with the fourth quarter of 2011 and a 13% increase compared
    with the third quarter of 2012.
--  Fixed income capital raising revenues were $18.5 million, a 40%
    increase compared with the fourth quarter of 2011 and a 24% increase
    compared with the third quarter of 2012.
--  Advisory fee revenues were $26.6 million, a 7% decrease compared with
    the fourth quarter of 2011 and a 2% decrease compared with the third
    quarter of 2012.

  
Consolidated Compensation and Benefits Expenses 
For the quarter ended December 31, 2012, compensation and benefits
expenses were $262.2 million, compared with $228.7 million in the
fourth quarter of 2011 and $267.7 million in the third quarter of
2012.  
Compensation and benefits as a percentage of net revenues was 62.8%
in the fourth quarter of 2012, compared with 64.1% in the fourth
quarter of 2011 and 63.7% in the third quarter of 2012. Transition
pay, which primarily consists of amortization of upfront notes,
signing bonuses and retention awards, as a percentage of net revenues
was 5% in the fourth quarter of 2012, consistent with the fourth
quarter of 2011 and the third quarter of 2012.  
Consolidated Non-Compensation Operating Expenses 
For the quarter ended December 31, 2012, non-compensation operating
expenses were $94.6 million, compared to $83.1 million in the fourth
quarter of 2011 and $90.8 million in the third quarter of 2012. The
increase in non-compensation operating expenses for the fourth
quarter of 2012 was due to acquisition-related professional fees and
other non-recurring expenses. 
Non-compensation operating expenses as a percentage of net revenues
for the quarter ended December 31, 2012 was 22.6% compared with 23.3%
in the fourth quarter of 2011 and 21.6% in the third quarter of 2012. 
Provision for Income Taxes 
The effective income tax rate for the quarter ended December 31, 2012
was 35% compared with 40% in the fourth quarter of 2011 and 39% in
the third quarter of 2012. The decrease in the effective rate for the
three months ended December 31, 2012 is primarily attributable to
adjustments to the provision as a result of the Miller Buckfire
acquisition, offset by an increase in the valuation allowance to
adjust the tax benefit of certain state and foreign net operating
loss carryforwards to the amount that we have determined is more
likely than not to be realized. 
Full-Year 2012 
Global Wealth Management 
For the year ended December 31, 2012, the GWM segment generated
pre-tax operating income of $268.2 million on net revenues of $995.2
million compared with $235.4 million on net revenues of $908.2
million in 2011. The increase in net revenues over the comparable
period in 2011 is primarily attributable to: (1) growth in asset
management and service fees as a result of an increase in client
assets and positive gains in market performance; (2) higher sales
credits from investment banking underwritings; (3) increased net
interest revenues as a result of the growth of net interest-earning
assets at Stifel Bank; and (4) higher principal transactions
revenues, offset by a decrease in commissions revenues. 


 
--  The Private Client Group reported net revenues of $915.3 million, an
    8% increase compared to $850.1 million in 2011.
--  Stifel Bank reported net revenues of $79.9 million, a 38% increase
    compared to $58.1 million in 2011.

  
Institutional Group 
For the year ended December 31, 2012, the Institutional Group segment
generated pre-tax operating income of $96.2 million on net revenues
of $618.5 million compared with $63.3 million on net revenues of
$507.4 million in 2011. The increase in net revenues from the
comparable period in 2011 was driven by: (1) an increase in fixed
income capital raising revenues; (2) an increase in advisory fees;
(3) higher fixed income institutional brokerage revenues; and (4) the
realized and unrealized gains recognized on the Company's investment
in Knight Capital Group, Inc. Offsetting these increases was a
decrease in equity institutional brokerage revenues. 
Institutional brokerage revenues were $331.4 million, a 3% increase
compared with $323.3 million in 2011.  


 
--  Equity brokerage revenues were $162.4 million, an 11% decrease
    compared with $181.9 million in 2011.
--  Fixed income brokerage revenues were $169.0 million, a 20% increase
    compared with $141.4 million in 2011.

  
Investment banking revenues were $241.3 million, a 35% increase
compared with $179.1 million in 2011.  


 
--  Equity capital raising revenues were $86.6 million, a 12% increase
    compared with $77.5 million in 2011.
--  Fixed income capital raising revenues were $58.7 million, a 122%
    increase compared with $26.5 million in 2011.
--  Advisory fee revenues were $96.1 million, a 28% increase compared with
    $75.1 million in 2011.

  
Consolidated Compensation and Benefits Expenses 
For the year ended December 31, 2012, compensation and benefits
expenses were $1.02 billion compared with $900.4 million in 2011.  
Compensation and benefits as a percentage of net revenues for the
year ended December 31, 2012 was 63.5% compared with 63.6% in 2011.
Transition pay as a percentage of net revenues was 5% for the year
ended December 31, 2012, the same for 2011. 
Consolidated Non-Compensation Operating Expenses 
For the year ended December 31, 2012, non-compensation operating
expenses were $362.8 million compared to $377.5 million in 2011.
Non-compensation operating expenses for the year ended December 31,
2011 included $45.8 million of litigation-related charges and
merger-related expenses. 
Non-compensation operating expenses as a percentage of net revenues
for the year ended December 31, 2012 was 22.5% compared with 26.6% in
2011. 
Provision for Income Taxes 
For the year ended December 31, 2012, provision for income taxes was
$87.3 million, representing an effective tax rate of 39% compared to
$54.5 million in 2011, representing an effective tax rate of 39%.  
Statement of Financial Condition (Unaudited) 
Total assets increased 40.7% to $7.0 billion as of December 31, 2012
from $5.0 billion as of December 31, 2011. The increase is primarily
attributable to growth of Stifel Bank, the Company's bank subsidiary,
which as of December 31, 2012 has grown its assets to $3.7 billion
from $2.3 billion as of December 31, 2011. As of December 31, 2012,
Stifel Bank's investment portfolio of $2.3 billion has increased 66%
from December 31, 2011, with more than 99% of the investment
portfolio comprised of investment grade securities, of which more
than 70% were Government-Sponsored Enterprise guaranteed MBS or
AAA-rated investments. The Company's broker-dealer subsidiary's gross
assets and liabilities, including trading inventory, stock
loan/borrow, receivables and payables from/to brokers, dealers and
clearing organizations and clients, fluctuate with business levels
and overall market condit
ions.  
Total stockholders' equity as of December 31, 2012 increased $192.6
million, or 14.8%, to $1.49 billion from $1.30 billion as of December
31, 2011. Book value per share was $27.24 as of December 31, 2012.
The Company repurchased $11.4 million, or 0.4 million shares, of its
common stock pursuant to existing Board repurchase authorizations
during the year ended December 31, 2012.  
As of December 31, 2012, the Company reported total securities owned
and investments at fair value of $2.7 billion, which included
securities categorized as Level 3 of $206.8 million. The Company's
Level 3 assets include auction rate securities with a fair value of
$163.1 million, and private equity, municipal securities, and other
fixed income securities with a fair value $43.7 million as of
December 31, 2012. 
Conference Call Information 
Stifel Financial Corp. will host its fourth quarter and full-year
2012 financial results conference call on Monday, February 25, 2012,
at 5:00 p.m. Eastern time. The conference call may include
forward-looking statements. 
All interested parties are invited to listen to the Company's
Chairman, President, and CEO, Ronald J. Kruszewski, by dialing (800)
651-2240 and referencing conference ID #12018117. 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 clients are served through Stifel,
Nicolaus & Company, Incorporated in the U.S., through Stifel Nicolaus
Canada Inc. in Canada, through Stifel Nicolaus Europe Limited in the
United Kingdom and Europe, and through Keefe, Bruyette & Woods, Inc.
in the U.S. and Europe. 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 & Trust offers a full range of consumer and commercial lending
solutions. Stifel Trust Company, N.A. offers trust and related
services. To learn more about Stifel, please visit the Company's web
site at www.stifel.com. 
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.
Forward-looking statements speak only as to the date they are made.
Stifel Financial Corp. 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.  


 
                                                                            
                  Summary Results of Operations (Unaudited)                 
                                                                            
                                           Three Months Ended               
                              --------------------------------------------  
(in thousands, except per                                                   
 share amounts)               12/31/12 12/31/11 % Change  9/30/12 % Change  
                              -------- -------- -------- -------- --------  
Revenues:   
                                                                
  Commissions                 $134,280 $123,737      8.5 $127,966      4.9  
  Principal transactions        97,708   93,963      4.0  102,979     (5.1) 
  Investment banking            75,846   56,075     35.3   72,938      4.0  
  Asset management and                                                      
   service fees                 68,971   55,920     23.3   62,881      9.7  
  Other income                  19,597    8,379    133.9   31,922    (38.6) 
                              -------- -------- -------- -------- --------  
    Operating revenues         396,402  338,074     17.3  398,686     (0.6) 
  Interest revenue              30,032   25,220     19.1   27,306     10.0  
                              -------- -------- -------- -------- --------  
    Total revenues             426,434  363,294     17.4  425,992      0.1  
  Interest expense               8,604    6,416     34.1    5,912     45.5  
                              -------- -------- -------- -------- --------  
    Net revenues               417,830  356,878     17.1  420,080     (0.5) 
                              -------- -------- -------- -------- --------  
                                                                            
Non-interest expenses:                                                      
  Compensation and benefits    262,213  228,743     14.6  267,652     (2.0) 
  Occupancy and equipment                                                   
   rental                       34,075   31,967      6.6   33,061      3.1  
  Communications and office                                                 
   supplies                     19,795   19,391      2.1   19,976     (0.9) 
  Commission and floor                                                      
   brokerage                     7,480    6,097     22.7    8,031     (6.9) 
  Other operating expenses      33,200   25,654     29.4   29,683     11.8  
                              -------- -------- -------- -------- --------  
    Total non-interest                                                      
     expenses                  356,763  311,852     14.4  358,403     (0.5) 
                                                                            
Income before income taxes      61,067   45,026     35.6   61,677     (1.0) 
  Provision for income taxes    21,113   18,010     17.2   23,967    (11.9) 
                              -------- -------- -------- -------- --------  
Net income                    $ 39,954 $ 27,016     47.9 $ 37,710      6.0  
                              ======== ======== ======== ======== ========  
                                                                            
Earnings per share:                                                         
  Basic                       $   0.74 $   0.52     42.3 $   0.70      5.8  
  Diluted                     $   0.63 $   0.43     46.5 $   0.60      5.0  
                                                                            
Weighted average number of common shares                                    
 outstanding:                                                               
  Basic                         53,835   51,849      3.9   53,601      0.5  
  Diluted                       63,301   62,695      1.0   63,054      0.4  
                                                                            
 
                                                                    
                                               Year Ended           
                                     ------------------------------ 
        (in thousands, except per                                   
         share amounts)               12/31/12   12/31/11  % Change 
                                     ---------- ---------- -------- 
        Revenues:                                                   
          Commissions                $  512,976 $  561,081     (8.6)
          Principal transactions        408,484    343,213     19.0 
          Investment banking            286,585    199,584     43.6 
          Asset management and                                      
           service fees                 257,981    228,834     12.7 
          Other income                   70,231     19,731    255.9 
                                     ---------- ---------- -------- 
            Operating revenues        1,536,257  1,352,443     13.6 
          Interest revenue              109,776     89,466     22.7 
                                     ---------- ---------- -------- 
            Total revenues            1,646,033  1,441,909     14.2 
          Interest expense               33,383     25,347     31.7 
                                     ---------- ---------- -------- 
            Net revenues              1,612,650  1,416,562     13.8 
                                     ---------- ---------- -------- 
                                                                    
        Non-interest expenses:                                      
          Compensation and benefits   1,023,943    900,421     13.7 
          Occupancy and equipment                                   
           rental                       130,247    121,929      6.8 
          Communications and office                                 
           supplies                      80,941     75,589      7.1 
          Comm
ission and floor                                      
           brokerage                     30,870     27,040     14.2 
          Other operating expenses      120,777    152,975    (21.0)
                                     ---------- ---------- -------- 
            Total non-interest                                      
             expenses                 1,386,778  1,277,954      8.5 
                                                                    
        Income before income taxes      225,872    138,608     63.0 
          Provision for income taxes     87,299     54,474     60.3 
                                     ---------- ---------- -------- 
        Net income                   $  138,573 $   84,134     64.7 
                                     ========== ========== ======== 
                                                                    
        Earnings per share:                                         
          Basic                      $     2.59 $     1.61     60.9 
          Diluted                    $     2.20 $     1.33     65.4 
                                                                    
        Weighted average number of                                  
         common shares outstanding:                                 
          Basic                          53,563     52,418      2.2 
          Diluted                        62,937     63,058     (0.2)
                                                                    
                                                                            
       (in thousands, except per share, employee and location amounts)      
                                                                            
                                                     %                   %  
                          12/31/12     12/31/11   Change    9/30/12   Change
                        ------------ ------------ ------ ------------ ------
Statistical                                                                 
 Information:                                                               
  Book value per share  $      27.24 $      25.10    8.5 $      26.62    2.3
  Financial advisors                                                        
   (4)                         2,041        1,987    2.7        2,036    0.2
  Full-time associates         5,343        5,097    4.8        5,266    1.5
  Locations                      340          320    6.3          338    0.6
  Total client assets                                                       
   (5)                  $137,855,000 $122,466,000   12.6 $136,015,000    1.4
                                                                            
                                                                            
     Global Wealth Management Summary Results of Operations (Unaudited)     
                                                                            
                                           Three Months Ended               
                             ---------------------------------------------  
(in 000s)                    12/31/12 12/31/11 % Change   9/30/12 % Change  
                             -------- -------- --------  -------- --------  
Revenues:                                                                   
  Commissions                $ 93,045 $ 83,662     11.2  $ 89,393      4.1  
  Principal transactions       54,747   53,700      1.9    58,801     (6.9) 
  Asset management and                                                      
   service fees                68,631   55,691     23.2    62,871      9.2  
  Net interest                 21,195   17,602     20.4    22,283     (4.9) 
  Investment banking           10,906    4,015    171.6    13,347    (18.3) 
  Other income                  6,560    9,899    (33.7)    5,033     30.3  
                             -------- -------- --------  -------- --------  
    Net revenues              255,084  224,569     13.6   251,728      1.3  
                             -------- -------- --------  -------- --------  
Non-interest expenses:                                                      
  Compensation and benefits   147,029  125,053     17.6   146,882      0.1  
  Non-compensation operating                                                
   expenses                    38,773   36,644      5.8    36,476      6.3  
                             -------- -------- --------  -------- --------  
    Total non-interest                                                      
     expenses                 185,802  161,697     14.9   183,358      1.3  
                             -------- -------- --------  -------- --------  
Income before income taxes   $ 69,282 $ 62,872     10.2  $ 68,370      1.3  
                             ======== ======== ========  ======== ========  
                                                                            
As a percentage of net                                                      
 revenues:                                                                  
  Compensation and benefits      57.6     55.7               58.3           
  Non-compensation operating                                                
   expenses                      15.2     16.3               14.5           
  Income before income taxes     27.2     28.0               27.2           
 
                                                                 
                                              Year Ended         
                                      -------------------------- 
          (in 000s)                   12/31/12 12/31/11 % Change 
                                      -------- -------- -------- 
          Revenues:                                              
            Commissions               $361,884 $371,046     (2.5)
            Principal transactions     228,221  209,962      8.7 
            Asset management and      
                           
             service fees              257,257  228,045     12.8 
            Net interest                79,358   57,188     38.8 
            Investment banking          45,254   20,475    121.0 
            Other income                23,215   21,442      8.3 
                                      -------- -------- -------- 
              Net revenues             995,189  908,158      9.6 
                                      -------- -------- -------- 
          Non-interest expenses:                                 
            Compensation and benefits  578,652  528,835      9.4 
            Non-compensation operating                           
             expenses                  148,354  143,941      3.1 
                                      -------- -------- -------- 
              Total non-interest                                 
               expenses                727,006  672,776      8.1 
                                      -------- -------- -------- 
          Income before income taxes  $268,183 $235,382     13.9 
                                      ======== ======== ======== 
                                                                 
          As a percentage of net                                 
           revenues:                                             
            Compensation and benefits     58.1     58.2          
            Non-compensation operating                           
             expenses                     14.9     15.8          
            Income before income taxes    27.0     26.0          
                                                                            
                                                                            
                       Stifel Bank & Trust (Unaudited)                      
                         Key Statistical Information                        
----------------------------------------------------------------------------
                                                                            
(in 000s, except                                                            
 percentages)           12/31/12    12/31/11   % Change   9/30/12   % Change
                       ----------  ----------  -------- ----------  --------
Other information:                                                          
  Assets               $3,652,633  $2,275,729      60.5 $3,228,021      13.2
  Investment                                                                
   securities           2,332,058   1,403,522      66.2  2,133,494       9.3
  Retained loans          822,711     631,173      30.3    746,120      10.3
  Loans held for sale     214,531     131,754      62.8    209,358       2.5
  Deposits              3,346,133   2,071,738      61.5  2,923,671      14.4
                                                                            
  Allowance as a                                                            
   percentage of loans       0.99%       0.83%                0.85%         
  Non-performing                                                            
   assets as a                                                              
   percentage of total                                                      
   assets                    0.06%       0.14%                0.07%         
                                                                            
                                                                            
                                                                            
        Institutional Group Summary Results of Operations (Unaudited)       
                                                                            
                                           Three Months Ended               
                             ---------------------------------------------  
(in 000s)                    12/31/12 12/31/11 % Change   9/30/12 % Change  
                             -------- -------- --------  -------- --------  
Revenues:                                                                   
  Commissions                $ 41,235 $ 40,076      2.9  $ 38,574      6.9  
  Principal transactions       42,961   40,263      6.7    44,178     (2.8) 
                                                                            
  Capital raising              38,296   23,331     64.1    32,386     18.2  
  Advisory fees                26,644   28,728     (7.3)   27,205     (2.1) 
                             -------- -------- --------  -------- --------  
  Investment banking           64,940   52,059     24.7    59,591      9.0  
  Other (6)                    15,920    1,831        *    27,336    (41.8) 
                             -------- -------- --------  -------- --------  
    Net revenues              165,056  134,229     23.0   169,679     (2.7) 
                             -------- -------- --------  -------- --------  
Non-interest expenses:                                                      
  Compensation and benefits   108,371   89,497     21.1   104,913      3.3  
  Non-compensation operating                                                
   expenses                    35,195   33,959      3.6    31,339     12.3  
                             -------- -------- --------  -------- --------  
    Total non-interest                                                      
     expenses                 143,566  123,456     16.3   136,252      5.4  
                             -------- -------- --------  -------- --------  
Income before income taxes   $ 21,490 $ 10,773     99.5  $ 33,427    (35.7) 
                             ======== ======== ========  ======== ========  
                                                                            
As a percentage of net                                                      
 revenues:                                                                  
  Compensation and benefits      65.7     66.7               61.8           
  Non-compensation operating                                                
   expenses                      21.3     25.3               18.5           
  Income before income taxes     13.0      8.0               19.7           
 
                                                                 
                                              Year Ended         
                                      -------------------------- 
          (in 000s)                   12/31/12 12/31/11 % Change 
                                      -------- -------- -------- 
          Revenues:                                              
            Commissions               $151,093 $190,036    (20.5)
            Principal transactions     180,263  133,251     35.3 
                                                                 
            Capital raising            145,247  103,985     39.7 
            Advisory fees               96,084   75,123     27.9 
                                      -------- -------- -------- 
            Investment banking         241,331  179,108     34.7 
            Other (6)                   45,849    5,002        * 
                                      -------- -------- -------- 
              Net revenues             618,536  507,397     21.9 
                                      -------- -------- -------- 
          Non-interest expenses:                                 
            Compensation and benefits  392,062  323,503     21.2 
            Non-compensation operating                           
             expenses                  130,307  120,625      8.0 
                            
          -------- -------- -------- 
              Total non-interest                                 
               expenses                522,369  444,128     17.6 
                                      -------- -------- -------- 
          Income before income taxes  $ 96,167 $ 63,269     52.0 
                                      ======== ======== ======== 
                                                                 
          As a percentage of net                                 
           revenues:                                             
            Compensation and benefits     63.4     63.8          
            Non-compensation operating                           
             expenses                     21.1     23.7          
            Income before income taxes    15.5     12.5          
                                                                            
* Percentage not meaningful.                                                
                                                                            
                                                                            
   Institutional Group Brokerage & Investment Banking Revenues (Unaudited)  
                                                                            
                                           Three Months Ended               
                             ---------------------------------------------  
(in 000s)                    12/31/12 12/31/11 % Change   9/30/12 % Change  
                             -------- -------- --------  -------- --------  
Institutional brokerage:                                                    
  Equity                     $ 41,805 $ 40,598      3.0  $ 37,956     10.1  
  Fixed income                 42,391   39,741      6.7    44,796     (5.4) 
                             -------- -------- --------  -------- --------  
Institutional brokerage        84,196   80,339      4.8    82,752      1.7  
                                                                            
Investment banking:                                                         
  Capital raising:                                                          
    Equity                     19,830   10,109     96.2    17,527     13.1  
    Fixed income               18,466   13,222     39.7    14,859     24.3  
                             -------- -------- --------  -------- --------  
      Capital raising          38,296   23,331     64.1    32,386     18.2  
  Advisory fees                26,644   28,728     (7.3)   27,205     (2.1) 
                             -------- -------- --------  -------- --------  
Investment banking           $ 64,940 $ 52,059     24.7  $ 59,591      9.0  
                             -------- -------- --------  -------- --------  
                                                                            
 
                                                                 
                                              Year Ended         
                                      -------------------------- 
          (in 000s)                   12/31/12 12/31/11 % Change 
                                      -------- -------- -------- 
          Institutional brokerage:                               
            Equity                    $162,399 $181,876    (10.7)
            Fixed income               168,957  141,411     19.5 
                                      -------- -------- -------- 
          Institutional brokerage      331,356  323,287      2.5 
                                                                 
          Investment banking:                                    
            Capital raising:                                     
              Equity                    86,558   77,495     11.7 
              Fixed income              58,689   26,490    121.6 
                                      -------- -------- -------- 
                Capital raising        145,247  103,985     39.7 
            Advisory fees               96,084   75,123     27.9 
                                      -------- -------- -------- 
          Investment banking          $241,331 $179,108     34.7 
                                      -------- -------- -------- 

 
(1) Included in the results for the year ended December 31, 2011 were
the estimated costs of settlement and litigation-related expenses of
$29.4 million after tax, or $0.47 per diluted share, respectively,
associated with the civil lawsuit and related regulatory
investigation in connection with the previously disclosed matter
involving five Southeastern Wisconsin school districts and certain
merger-related expenses. 
(2) Results for the three and twelve months ended December 31, 2012
includes $13.4 million and $39.0 million, respectively, in realized
and unrealized gains recognized on the Company's investment in Knight
Capital Group, Inc. 
(3) Results for the year ended December 31, 2011 include
litigation-related charges and merger-related expenses of $47.5
million pre-tax. 
(4) Includes 151, 154 and 154 independent contractors at December 31,
2012 and 2011 and September 30, 2012, respectively. 
(5) Includes money market and FDIC-insured balances. Prior period
amounts have been adjusted to conform to the current period
presentation. 
(6) Includes net interest and other income. Other income for the
three and twelve months ended December 31, 2012 includes $13.4
million and $39.0 million, respectively, in realized and unrealized
gains recognized on the Company's investment in Knight Capital Group,
Inc. 
Investor Relations Contact
Sarah Anderson
(415) 364-2500 
investorrelations@stifel.com