Stifel Reports First Quarter 2013 Financial Results, Record Net Revenues

Stifel Reports First Quarter 2013 Financial Results, Record Net Revenues 
ST. LOUIS, MO -- (Marketwired) -- 05/09/13 --  Stifel Financial Corp.
(NYSE: SF) 
Financial highlights for the three months ended March 31, 2013: 


 
--  Record net revenues of $441.8 million.
--  Non-GAAP net income of $39.9 million, or $0.58 per diluted share.
--  Net income of $14.6 million, or $0.21 per diluted share.
--  Stockholders' equity totaled $1.9 billion and book value per share was
    $30.13.

  
Stifel Financial Corp. (NYSE: SF) today reported record net revenues of
$441.8 million for the three months ended March 31, 2013. The Company
reported non-GAAP net income of $39.9 million, or $0.58 per diluted
share. On a GAAP basis, the Company reported net income of $14.6
million, or $0.21 per diluted share for the three months ended March
31, 2013, compared with net income of $34.8 million, or $0.55 per
diluted share, on net revenues of $400.3 million for the first
quarter of 2012. The Company 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. A reconciliation of the
Company's GAAP results to these non-GAAP measures is discussed below
under "Non-GAAP Financial Measures." 
Two items significantly impacted GAAP results for the three months
ended March 31, 2013: 


 
--  A non-cash charge of $19.2 million after-tax ($30.6 million pre-tax),
    or $0.28 per diluted share, related to expensing stock awards issued
    in connection with the acquisition of KBW.
--  Merger-related expenses of $6.1 million after-tax ($9.7 million
    pre-tax), or $0.09 per diluted share, related to the previously
    announced acquisitions of KBW and Miller Buckfire.

  
"We are pleased with our performance for the quarter, which included
record net revenues," said Ronald J. Kruszewski, Chairman, President
and CEO of Stifel. 
Kruszewski continued, "While our profitability is clouded by
merger-related charges, it is noteworthy that our Global Wealth
Management segment posted record revenue and profitability, and our
Institutional segment generated record quarterly revenue. As we work
through the KBW integration process and the related expense
reductions, we expect to continue to report 
both GAAP and non-GAAP
results for the remainder of the year. Looking forward, we are
focused on leveraging our new and established businesses to drive
growth and profits across the platform. Additionally, we are on track
this quarter to complete the acquisition of the U.S. institutional
fixed income sales and trading team and hiring of the European team
from Knight Capital Group." 


 
                                                                            
                 Summary Results of Operations (Unaudited)                  
--------------------------------------------------------------------------- 
                                          Three Months Ended                
                           ------------------------------------------------ 
(in 000s)                   3/31/13   3/31/12  % Change   12/31/12 % Change 
                           --------- --------- --------  --------- -------- 
  Net revenues             $ 441,780 $ 400,333     10.4  $ 417,830      5.7 
  Net income               $  14,619 $  34,773    (58.0) $  39,954    (63.4)
  Non-GAAP net income (1)  $  39,884 $  34,773     14.7  $  39,954     (0.2)
Earnings per share:                                                         
  Basic                    $    0.24 $    0.65    (63.1) $    0.74    (67.6)
  Diluted                  $    0.21 $    0.55    (61.8) $    0.63    (66.7)
  Non-GAAP diluted (1)     $    0.58 $    0.55      5.5  $    0.63     (7.9)
Weighted average number of                                                  
 common shares                                                              
 outstanding:                                                               
  Basic                       60,054    53,243     12.8     53,835     11.6 
  Diluted                     69,189    62,669     10.4     63,301      9.3 

 
Business Segment Results 


 
                                                                            
                     Summary Segment Results (Unaudited)                    
----------------------------------------------------------------------------
                                           Three Months Ended               
                           -------------------------------------------------
(in 000s)                   3/31/13   3/31/12   % Change 12/31/12   % Change
                           --------  --------  --------- --------  ---------
Net revenues:                                                               
  Global Wealth Management $266,957  $247,608        7.8 $255,084        4.7
  Institutional Group (2)   176,437   149,244       18.2  165,056        6.9
  Other                      (1,614)    3,481          *   (2,310)      30.1
                           --------  --------  --------- --------  ---------
                           $441,780  $400,333       10.4 $417,830        5.7
                           --------  --------  --------- --------  ---------
Operating contribution:(3)                                                  
  Global Wealth Management $ 69,499  $ 68,878        0.9 $ 69,282        0.3
  Institutional Group (2)    28,137    24,004       17.2   21,490       30.9
  Other                     (33,944)  (33,628)       0.9  (29,705)      14.3
                           --------  --------  --------- --------  ---------
                           $ 63,692  $ 59,254        7.5 $ 61,067        4.3
                           --------  --------  --------- --------  ---------
                                                                            
* Percentage is not meaningful.                                             

 
Global Wealth Management 
For the quarter ended March 31, 2013, the Global Wealth Management
("GWM") segment generated pre-tax operating income of $69.5 million,
compared with $68.8 million in the first quarter of 2012 and $69.3
million in the fourth quarter of 2012. Net revenues for the quarter
were $267.0 million, compared with $247.6 million in the first
quarter of 2012, and $255.1 million in the fourth quarter of 2012.
The increase in net revenues both from the first quarter and fourth
quarter of 2012 is primarily attributable to (1) an increase in
commission revenues; (2) growth in asset management and service fees;
and (3) increased net interest revenues, offset by (1) a decline in
principal transactions revenues; and (2) lower investment banking
revenues.  


 
--  The Private Client Group reported record net revenues of $243.1
    million, a 5% increase compared with both the first quarter and fourth
    quarter of 2012.
--  Stifel Bank reported net revenues of $23.9 million, a 49% increase
    compared with the first quarter of 2012 and a 6% increase compared
    with the fourth quarter of 2012.

  
Institutional Group 
For the quarter ended March 31, 2013, the Institutional Group segment
generated pre-tax operating income of $28.1 million, compared with
$24.0 million in the first quarter of 2012 and $21.5 million in the
fourth quarter of 2012. Net revenues for the quarter were $176.4
million, compared with $149.2 million in
 the first quarter of 2012
and $165.1 million in the fourth quarter of 2012. The increase in net
revenues from the first quarter of 2012 was primarily attributable to
(1) an increase in advisory fees; (2) the realized and unrealized
gains recognized on the Company's investment in Knight Capital Group;
(3) higher equity institutional brokerage revenues; and (4) an
increase in fixed income capital raising revenues, offset by (1) a
decrease in equity capital raising revenues; and (2) lower fixed
income institutional brokerage revenues. The increase in net revenues
from the fourth quarter of 2012 was primarily attributable to (1) an
increase in equity institutional brokerage revenues; (2) higher
equity capital raising revenues; and (3) higher fixed income
institutional brokerage revenues, offset by a decline in fixed income
capital raising revenues. Net revenue growth, both year-over-year and
sequentially, is attributable to the acquisitions of KBW and, to a
lesser extent, Miller Buckfire. 
Institutional brokerage revenues were $97.5 million, an 8% increase
compared with the first quarter of 2012 and a 16% increase compared
with the fourth quarter of 2012.  


 
--  Equity brokerage revenues were $52.0 million, an 18% increase compared
    with the first quarter of 2012 and a 24% increase compared with the
    fourth quarter of 2012.
--  Fixed income brokerage revenues were $45.5 million, a 1% decrease
    compared with the first quarter of 2012 and a 7% increase compared
    with the fourth quarter of 2012.

  
Investment banking revenues were $67.3 million, a 16% increase compared
with the first quarter of 2012 and a 4% increase compared with the
fourth quarter of 2012.  


 
--  Equity capital raising revenues were $24.4 million, a 23% decrease
    compared with the first quarter of 2012 and a 23% increase compared
    with the fourth quarter of 2012.
--  Fixed income capital raising revenues were $15.7 million, a 44%
    increase compared with the first quarter of 2012 and a 15% decrease
    compared with the fourth quarter of 2012.
--  Advisory fee revenues were $27.2 million, a 74% increase compared with
    the first quarter of 2012 and a 2% increase compared with the fourth
    quarter of 2012.

  
Consolidated Compensation and Benefits Expenses 
For the quarter ended March 31, 2013, compensation and benefits
expenses were $315.7 million, which included $33.8 million related to
(1) expensing stock awards issued as retention in connection with the
acquisition of KBW of $30.6 million and (2) merger-related expenses
of $3.2 million, compared with $254.7 million in the first quarter of
2012 and $262.2 million in the fourth quarter of 2012.  
Excluding these expenses, compensation and benefits as a percentage
of net revenues was 63.8% in the first quarter of 2013, compared with
63.6% in the first quarter of 2012 and 62.8% in the fourth 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 4.7% in the first quarter of 2013, compared with
4.3% in the first quarter of 2012 and 5.4% in the fourth quarter of
2012.  
Consolidated Non-Compensation Operating Expenses 
For the quarter ended March 31, 2013, non-compensation operating
expenses were $102.7 million, which included $6.6 million of
merger-related expenses, compared with $86.4 million in the first
quarter of 2012 and $94.6 million in the fourth quarter of 2012. 
Excluding the merger-related expenses, non-compensation operating
expenses as a percentage of net revenues for the quarter ended March
31, 2013 was 21.8%, compared with 21.6% in the first quarter of 2012
and 22.6% in the fourth quarter of 2012.  
Provision for Income Taxes 
The effective income tax rate for the quarter ended March 31, 2013
was 37% compared with 41% in the first quarter of 2012 and 35% in the
fourth quarter of 2012. The decrease in the effective rate for the
three months ended March 31, 2013 from the year-ago quarter is
primarily attributable to adjustments to the provision as a result of
the Miller Buckfire acquisition. 
Statement of Financial Condition (Unaudited) 
Total assets increased 49% to $8.1 billion as of March 31, 2013 from
$5.5 billion as of March 31, 2012. The increase is primarily
attributable to growth of Stifel Bank, the Company's bank subsidiary,
which as of March 31, 2013 has grown its assets to $3.8 billion from
$2.6 billion as of March 31, 2012. As of March 31, 2013, Stifel
Bank's investment portfolio of $2.4 billion increased 46% from March
31, 2012, with more than 99% of the investment portfolio comprised of
investment grade securities, of which more than 71% were
Government-Sponsored Enterprise guaranteed MBS or AAA-rated
investments. The increase in total assets from March 31, 2012 is also
attributable to the recently completed acquisition of KBW. In
addition to the net assets acquired, the Company recognized goodwill
of $307.9 million, which is based on preliminary estimates and is
subject to change upon the completion of the valuation. 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 conditions.  
Total stockholders' equity as of March 31, 2013 increased $560.7
million, or 42%, to $1.90 billion from $1.34 billion as of March 31,
2012. Book value per share was $30.13 as of March 31, 2013.  
As of March 31, 2013, the Company reported total securities owned and
investments at fair value of $3.1 billion, which included securities
categorized as Level 3 of $274.6 million. The Company's Level 3
assets include auction rate securities with a fair value of $166.6
million, private equity and partnership interests with a fair value
of $82.3 million, and corporate and municipal securities with a fair
value $25.7 million as of March 31, 2013. The acquisition of KBW
contributed to the growth in the Company's level 3 assets. As of
March 31, 2013, the KBW entities held Level 3 assets with a fair
value of $57.1 million.  
Non-GAAP Financial Measures 
The Company utilized non-GAAP calculations of presented net revenues,
compensation and benefits, non-compensation operating expenses,
income before income taxes, provision for income taxes, net income,
compensation and non-compensation operating expense ratios, pre-tax
margin and diluted earnings per share as additional measures to aid
in understanding and analyzing the Company's financial results for
the three months ended March 31, 2013. Specifically, the Company
believes that the non-GAAP measures provide useful information by
excluding certain items that may not be indicative of the Company's
core operating results and business outlook. The Company believes
that these non-GAAP measures will allow for a better evaluation of
the operating performance of the business and facilitate a meaningful
comparison of the Company's results in the current period to those in
prior periods and future periods. Reference to these non-GAAP
measures should not be considered as a substitute for results that
are presented in a manner consistent with GAAP. These non-GAAP
measures are provided to enhance investors' overall understanding of
the Company's curren
t financial performance. These non-GAAP amounts
exclude compensation expense related to the granting of stock awards
with no continuing service requirement issued as retention as part of
the acquisition of KBW and certain compensation and non-compensation
operating expenses associated with the acquisitions of KBW and Miller
Buckfire. 
A limitation of utilizing these non-GAAP measures of net revenues,
compensation and benefits, non-compensation operating expenses,
income before income taxes, provision for income taxes, net income,
compensation and non-compensation operating expenses ratios, pre-tax
margin and diluted earnings per share is that the GAAP accounting
effects of these merger-related 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
of net revenues, compensation and benefits, non-compensation
operating expenses, income before income taxes, provision for income
taxes, net income, compensation and non-compensation operating
expense ratios, pre-tax margin and diluted earnings per share 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
revenues, compensation and benefits, non-compensation operating
expenses, income before income taxes, provision for income taxes, net
income, compensation and non-compensation operating expense ratios,
pre-tax margin and diluted earnings per share on a GAAP basis for the
three months ended March 31, 2013 to the aforementioned expenses on a
non-GAAP basis for the same period. 


 
                                                                            
           Reconciliation of GAAP to Non-GAAP Earnings (Unaudited)          
----------------------------------------------------------------------------
                                          Three Months Ended March 31, 2013 
                                         -----------------------------------
                                                       Merger-              
(in 000s, except per share amounts)          GAAP      related     Non-GAAP 
                                         ----------- ----------  -----------
Net revenues                             $   441,780 $        8  $   441,788
                                                                            
Non-interest expenses:                                                      
  Compensation and benefits                  315,727    (33,786)     281,941
  Non-compensation operating expenses        102,707     (6,552)      96,155
                                         ----------- ----------  -----------
    Total non-interest expenses              418,434    (40,338)     378,096
Income before income taxes                    23,346     40,346       63,692
  Provision for income taxes                   8,727     15,081       23,808
                                         ----------- ----------  -----------
Net income                               $    14,619 $   25,265  $    39,884
                                         ----------- ----------  -----------
                                                                            
Earnings per share::                                                        
  Basic                                  $      0.24 $     0.42  $      0.66
  Diluted                                $      0.21 $     0.37  $      0.58
                                                                            
As a percentage of net revenues:                                            
  Compensation and benefits                     71.5                    63.8
  Non-compensation operating expenses           23.2                    21.8
  Income before income taxes                     5.3                    14.4

 
Conference Call Information 
Stifel Financial Corp. will host its first quarter 2013 financial
results conference call on Thursday, May 9, 2013, at 5:00 p.m.
Eastern time. The conference call may include forward-looking
statements. 
All interested parties are invited to listen to Stifel's Chairman,
President, and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938
and referencing conference ID #58716630. 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 000s)                   3/31/13
   3/31/12  % Change   12/31/12 % Change 
                           --------- --------- --------  --------- -------- 
Revenues:                                                                   
  Commissions              $ 148,648 $ 123,303     20.6  $ 134,280     10.7 
  Principal transactions     107,244   116,233     (7.7)    97,708      9.8 
  Investment banking          78,379    70,438     11.3     75,846      3.3 
  Asset management and                                                      
   service fees               68,912    60,818     13.3     68,971     (0.1)
  Other income                20,212    13,294     52.0     19,597      3.1 
                           --------- --------- --------  --------- -------- 
    Operating revenues       423,395   384,086     10.2    396,402      6.8 
  Interest revenue            29,845    25,257     18.2     30,032     (0.6)
                           --------- --------- --------  --------- -------- 
    Total revenues           453,240   409,343     10.7    426,434      6.3 
  Interest expense            11,460     9,010     27.2      8,604     33.2 
                           --------- --------- --------  --------- -------- 
    Net revenues             441,780   400,333     10.4    417,830      5.7 
                           --------- --------- --------  --------- -------- 
                                                                            
Non-interest expenses:                                                      
  Compensation and                                                          
   benefits                  315,727   254,704     24.0    262,213     20.4 
  Occupancy and equipment                                                   
   rental                     34,048    30,791     10.6     34,075     (0.1)
  Communication and office                                                  
   supplies                   22,979    20,373     12.8     19,795     16.1 
  Commission and floor                                                      
   brokerage                   9,058     7,612     19.0      7,480     21.1 
  Other operating expenses    36,622    27,599     32.7     33,200     10.3 
                           --------- --------- --------  --------- -------- 
    Total non-interest                                                      
     expenses                418,434   341,079     22.7    356,763     17.3 
                                                                            
Income before income taxes    23,346    59,254    (60.6)    61,067    (61.8)
  Provision for income                                                      
   taxes                       8,727    24,481    (64.4)    21,113    (58.7)
                           --------- --------- --------  --------- -------- 
Net income                 $  14,619 $  34,773    (58.0) $  39,954    (63.4)
                           --------- --------- --------  --------- -------- 
                                                                            
Earnings per share:                                                         
  Basic                    $    0.24 $    0.65    (63.1) $    0.74    (67.6)
  Diluted                  $    0.21 $    0.55    (61.8) $    0.63    (66.7)
                                                                            
Weighted average number of                                                  
 common shares                                                              
 outstanding:                                                               
  Basic                       60,054    53,243     12.8     53,835     11.6 
  Diluted                     69,189    62,669     10.4     63,301      9.3 
                                                                            
                                                                            
                                                                            
    (in thousands, except per share data, employee and location amounts)    
----------------------------------------------------------------------------
Key statistical                                                             
 information:          3/31/13      3/31/12   % Change   12/31/12   % Change
                    ------------ ------------ -------- ------------ --------
  Book value per                                                            
   share            $      30.13 $      25.07     20.2 $      27.24     10.6
  Financial                                                                 
   advisors (4)            2,063        2,013      2.5        2,041      1.1
  Full-time                                                                 
   associates              5,680        5,135     10.6        5,343      6.3
  Locations                  357          326      9.5          340      5.0
  Total client                                                              
   assets            147,119,000  130,550,000     12.7  137,855,000      6.7
                                                                            
                                                                            
                                                                            
                      Global Wealth Management Segment                      
                  Summary Results of Operations (Unaudited)                 
                                                                            
                                           Three Months Ended               
                           -------------------------------------------------
(in 000s)                   3/31/13   3/31/12  % Change   12/31/12  % Change
                           --------- --------- --------  --------- ---------
Revenues:                                                                   
  Commissions              $ 102,086 $  91,020     12.2  $  93,045       9.7
  Principal transactions      56,307    58,381     (3.6)    54,747       2.8
  Asset management and                                                      
   service fees               68,934    60,586     13.8     68,631       0.4
  Net interest                21,486    17,642     21.8     21,195       1.4
  Investment banking          11,103    12,402    (10.5)    10,906       1.8
  Other income                 7,041     7,577     (7.1)     6,560       7.3
                           --------- --------- --------  --------- ---------
    Net revenues             266,957   247,608      7.8    255,084       4.7
                           --------- --------- --------  --------- ---------
Non-interest expenses:                                                      
  Compensation and                                                          
   benefits                  157,596   143,351      9.9    147,029       7.2
  Non-compensation                                                          
   operating expenses         39,862    35,379     12.7     38,773       2.8
                           --------- --------- --------  --------- ---------
    Total non-interest                                                      
     expenses                197,458   178,730     10.5    185,802       6.3
                           --------- --------- --------  --------- ---------
Income before income taxes $  69,499 $  68,878      0.9  $  69,282       0.3
                           --------- --------- --------  --------- ---------
                                                                            
As a percentage of net                                                      
 revenues:                                                                  
  Compensation and                                                          
   benefits                     59.0      57.9                57.6          
  Non-compensation                                                          
   operating expenses           15.0      14.3                15.2          
  Income before income               
                                       
   taxes                        26.0      27.8                27.2          
                                                                            
                                                                            
                                                                            
                      Stifel Bank & Trust (Unaudited)                       
                        Key Statistical Information                         
--------------------------------------------------------------------------- 
(in 000s, except                                                            
 percentages)          3/31/13     3/31/12    % Change  12/31/12   % Change 
                     ----------  ----------  --------- ----------  -------- 
Other information:                                                          
  Assets             $3,832,281  $2,611,828       46.7 $3,652,633       4.9 
  Investment                                                                
   securities         2,440,146   1,673,866       45.8  2,332,058       4.6 
  Retained loans,                                                           
   net                  886,597     657,081       34.9    822,711       7.8 
  Loans held for                                                            
   sale                 165,698     141,136       17.4    214,531     (22.8)
  Deposits            3,556,568   2,357,912       50.8  3,346,133       6.3 
                                                                            
  Allowance as a                                                            
   percentage of                                                            
   loans                   1.01%       0.87%                 0.99%          
  Non-performing                                                            
   assets as a                                                              
   percentage of                                                            
   total assets            0.04%       0.11%                 0.06%          
                                                                            
                                                                            
                                                                            
                        Institutional Group Segment                         
                 Summary Results of Operations (Unaudited)                  
                                                                            
                                          Three Months Ended                
                           ------------------------------------------------ 
(in 000s)                   3/31/13   3/31/12  % Change   12/31/12 % Change 
                           --------- --------- --------  --------- -------- 
Revenues:                                                                   
  Commissions              $  46,562 $  32,283     44.2  $  41,235     12.9 
  Principal transactions      50,938    57,852    (12.0)    42,961     18.6 
                                                                            
    Capital raising           40,095    42,431     (5.5)    38,296      4.7 
    Advisory fees             27,180    15,605     74.2     26,644      2.0 
                           --------- --------- --------  --------- -------- 
  Investment banking          67,275    58,036     15.9     64,940      3.6 
  Other income (5)            11,662     1,073        *     15,920    (26.7)
                           --------- --------- --------  --------- -------- 
    Net revenues             176,437   149,244     18.2    165,056      6.9 
                           --------- --------- --------  --------- -------- 
Non-interest expenses:                                                      
  Compensation and                                                          
   benefits                  107,636    94,430     14.0    108,371     (0.7)
  Non-compensation                                                          
   operating expenses         40,664    30,810     32.0     35,195     15.5 
                           --------- --------- --------  --------- -------- 
    Total non-interest                                                      
     expenses                148,300   125,240     18.4    143,566      3.3 
                           --------- --------- --------  --------- -------- 
Income before income taxes $  28,137 $  24,004     17.2  $  21,490     30.9 
                           --------- --------- --------  --------- -------- 
                                                                            
As a percentage of net                                                      
 revenues:                                                                  
  Compensation and                                                          
   benefits                     61.0      63.3                65.7          
  Non-compensation                                                          
   operating expenses           23.1      20.6                21.3          
  Income before income                                                      
   taxes                        15.9      16.1                13.0          
                                                                            
* Percentage is not meaningful.                                             
                                                                            
                                                                            
                                                                            
                        Institutional Group Segment                         
    Institutional Brokerage and Investment Banking Revenues (Unaudited)     
                                                                            
                                          Three Months Ended                
                           ------------------------------------------------ 
(in 000s)                   3/31/13   3/31/12  % Change   12/31/12 % Change 
                           --------- --------- --------  --------- -------- 
Institutional brokerage:                                                    
  Equity                   $  52,000 $  44,171     17.7  $  41,805     24.4 
  Fixed income                45,500    45,964     (1.0)    42,391      7.3 
                           --------- --------- --------  --------- -------- 
Institutional brokerage       97,500    90,135      8.2     84,196     15.8 
                                                                            
Investment banking:                                                         
  Capital raising:                                                          
    Equity                    24,380    31,550    (22.7)    19,830     22.9 
    Fixed income              15,715    10,881     44.4     18,466    (14.9)
                           --------- --------- --------  --------- -------- 
      Capital raising         40,095    42,431     (5.5)    38,296      4.7 
  Advisory fees               27,180    15,605     74.2     26,644      2.0 
                           --------- --------- --------  --------- -------- 
Investment banking         $  67,275 $  58,036     15.9  $  64,940      3.6 

 
(1) A reconciliation of the Company's GAAP results to these non-GAAP
measures is discussed under "Non-GAAP Financial Measures."  
(2) Results for the three months ended March 31, 2013 and December
31, 2012 includes $2.2 million and $13.4 million, respectively, in
realized and unrealized gains recognized on the Company's investment
in Knight Capital Group, Inc. 
(3) A reconciliation of the Company's GAAP results to these non-GAAP
measures is discussed under "Non-GAAP Financial Measures." 
(4) Includes 148, 155 and 151 independent contractors at March 31,
2013 an
d 2012 and December 31, 2012, respectively. 
(5) Includes net interest and other income. 
Investor Relations Contact
Sarah Anderson
(415) 364-2500
investorrelations@stifel.com 
 
 
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