Stifel Reports Fourth Quarter and Full-Year 2013 Financial Results

ST. LOUIS, MO--(Marketwired - Feb 24, 2014) -  Stifel Financial Corp. (NYSE: SF)

• Record net revenues of $562.5 million, increased 37% compared with the year-ago quarter.
• Net income from continuing operations of $52.1 million, or $0.69 per diluted common share.
• Non-GAAP net income from continuing operations of $59.8 million, or $0.79 per diluted share.

Stifel Financial Corp. (NYSE: SF) today reported net income from continuing operations of $52.1 million, or $0.69 per diluted common share on record net revenues of $562.5 million for the three months ended December 31, 2013, compared with net income from continuing operations of $43.3 million, or $0.69 per diluted common share, on net revenues of $411.3 million for the fourth quarter of 2012.

For the three months ended December 31, 2013, the Company reported non-GAAP net income from continuing operations of $59.8 million, or $0.79 per diluted common share. These non-GAAP results exclude merger-related expenses associated with the acquisitions of the Knight Capital Fixed Income business, KBW, and Miller Buckfire for a total of $7.7 million (after-tax). A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

Summary Results of Operations (Unaudited)
			Three Months Ended																		Year Ended
(in 000s)			12/31/13				12/31/12				% Change			9/30/13				% Change			12/31/13				12/31/12				% Change
	Net revenues		$	562,526			$	411,283			36.8			$	478,639			17.5			$	1,973,446			$	1,594,113			23.8
	Net income from continuing operations		$	52,126			$	43,284			20.4			$	74,929			(30.4	)		$	172,907			$	145,296			19.0
	Net income		$	48,269			$	39,954			20.8			$	69,690			(40.8	)		$	162,013			$	138,573			16.9
	Non-GAAP net income from continuing operations1		$	59,819			$	43,284			38.2			$	39,649			50.9			$	184,658			$	145,296			27.1
Earnings per basic common share:
	Income from continuing operations		$	0.82			$	0.80			2.5			$	1.16			(29.3	)		$	2.67			$	2.71			(1.5	)
	Loss from discontinued operations			(0.06	)			(0.06	)		-				(0.08	)		(25.0	)			(0.17	)			(0.12	)		41.7
	Earnings per basic common share		$	0.76			$	0.74			2.5			$	1.08			(29.6	)		$	2.50			$	2.59			(3.5	)
Earnings per diluted common share:
	Income from continuing operations		$	0.69			$	0.69			-			$	1.00			(31.0	)		$	2.35			$	2.31			1.7
	Loss from discontinued operations			(0.05	)			(0.06	)		(16.7	)			(0.07	)		(28.6	)			(0.15	)			(0.11	)		36.4
	Earnings per diluted common share		$	0.64			$	0.63			1.6			$	0.93			(31.2	)		$	2.20			$	2.20			-
	Non-GAAP net income from continuing operations1		$	0.79			$	0.69			14.5			$	0.53			49.1			$	2.51			$	2.31			8.7
Weighted average number of common shares outstanding:
	Basic			64,859				53,835			20.5				64,706			0.2				63,568				53,563			18.7
	Diluted			75,495				63,301			19.3				75,191			0.4				73,504				62,937			16.8

Full-Year 2013 Results

• Record net revenues of $1.97 billion, increased 24% compared with the year-ago period.
• Net income from continuing operations of $172.9 million, or $2.35 per diluted common share. 
• Non-GAAP net income of $184.7 million, or $2.51 per diluted common share.

For the year ended December 31, 2013, the Company reported net income from continuing operations of $172.9 million, or $2.35 per diluted common share on record net revenues of $1.97 billion, compared with net income from continuing operations of $145.3 million, or $2.31 per diluted common share, on net revenues of $1.59 billion in 2012. For the year ended December 31, 2013, the Company reported non-GAAP net income from continuing operations of $184.7 million, or $2.51 per diluted common share. A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

Chairman's Comments

Ronald J. Kruszewski, Chairman, President and CEO of Stifel said, "We are very pleased to post our 18^th consecutive year of record net revenues. This speaks to the dedication of our over 5,800 professionals, as well as to our balanced business model. Non-GAAP net income from continuing operations for the year improved over the prior year as a result of both better market conditions and the benefits of our recent acquisitions."

Kruszewski continued, "Looking forward, we will continue to take advantage of opportunities in the marketplace that add to shareholder value."

Business Segment Results

Summary Segment Results (Unaudited)
				Three Months Ended																	Year Ended
(in 000s)				12/31/13				12/31/12				% Change		9/30/13				% Change			12/31/13				12/31/12				% Change
Net revenues:
	Global Wealth Management			$	292,836			$	253,775			15.4		$	274,669			6.6			$	1,117,179			$	991,597			12.7
	Institutional Group				267,282				160,693			66.3			205,132			30.3				861,158				604,654			42.4
	Other				2,408				(3,185	)		175.6			(1,162	)		(175.6	)			(4,891	)			(2,138	)		(128.7	)
				$	562,526			$	411,283			36.8		$	478,639			17.5			$	1,973,446			$	1,594,113			23.8
Operating contribution: (2)
	Global Wealth Management			$	79,022			$	68,737			15.0		$	72,128			9.6			$	299,572			$	266,669			12.3
	Institutional Group				48,590				21,678			124.1			34,986			38.9				142,889				101,487			40.8
	Other				(37,184	)			(30,064	)		23.7			(41,669	)		(10.8	)			(147,377	)			(138,409	)		6.5
				$	90,428			$	60,351			49.8		$	65,443			38.2			$	295,084			$	229,747			28.4
As a percentage of net revenues:
	Compensation and benefits
		Global Wealth Management			57.4				57.7						58.2							58.1				58.2
		Institutional Group			62.0				65.4						58.4							60.9				62.9
	Non-comp. operating expenses
		Global Wealth Management			15.6				15.2						15.5							15.1				14.9
		Institutional Group			19.8				21.1						24.5							22.5				20.3
	Income before income taxes
		Global Wealth Management			27.0				27.1						26.3							26.8				26.9
		Institutional Group			18.2				13.5						17.1							16.6				16.8
		Other			(6.5	)			(7.3	)					(8.7	)						(7.4	)			(8.7	)
					16.0				14.7						13.6							14.9				14.4

Fourth Quarter 2013

Global Wealth Management

For the quarter ended December 31, 2013, the Global Wealth Management segment generated record pre-tax operating income of $79.0 million, compared with $68.7 million in the fourth quarter of 2012 and $72.1 million in the third quarter of 2013. Net revenues for the quarter were a record $292.8 million, compared with $253.8 million in the fourth quarter of 2012, and $274.7 million in the third quarter of 2013. The increase in net revenues from the fourth quarter of 2012 is primarily attributable to (1) growth in asset management and service fees; (2) an increase in commission revenues; and (3) increased net interest revenues.

• The Private Client Group reported net revenues of $256.1 million, an 11% increase compared with the fourth quarter of 2012 and a 3% increase compared with the third quarter of 2013.
• Stifel Bank reported record net revenues of $36.7 million, a 63% increase compared with the fourth quarter of 2012 and a 40% increase compared with the third quarter of 2013.

Institutional Group

For the quarter ended December 31, 2013, the Institutional Group segment generated record pre-tax operating income of $48.6 million, compared with $21.7 million in the fourth quarter of 2012 and $35.0 million in the third quarter of 2013. Net revenues for the quarter were a record $267.3 million, compared with $160.7 million in the fourth quarter of 2012 and $205.1 million in the third quarter of 2013. The increase in net revenues from the fourth quarter of 2012 was primarily attributable to (1) an increase in advisory fees; (2) an increase in equity capital raising revenues; and (3) higher institutional brokerage revenues, offset by a reduction in other revenues as a result of gains recorded on the investment in Knight Capital during the fourth quarter of 2012. Net revenue growth, on a year-over-year basis, is attributable to the acquisitions of KBW and the Knight Capital Fixed Income business and, to a lesser extent, Miller Buckfire.

Institutional brokerage revenues were $111.3 million, a 35% increase compared with the fourth quarter of 2012 and a 1% increase compared with the third quarter of 2013.

• Equity brokerage revenues were $60.2 million, a 56% increase compared with the fourth quarter of 2012 and a 3% increase compared with the third quarter of 2013.
• Fixed income brokerage revenues were $51.1 million, a 17% increase compared with the fourth quarter of 2012 and a 1% decrease compared with the third quarter of 2013.

Investment banking revenues were a record $149.3 million, a 140% increase compared with the fourth quarter of 2012 and a 79% increase compared with the third quarter of 2013.

• Equity capital raising revenues were $46.6 million, a 175% increase compared with the fourth quarter of 2012 and a 52% increase compared with the third quarter of 2013.
• Fixed income capital raising revenues were $14.7 million, a 21% decrease compared with the fourth quarter of 2012 and a 9% increase compared with the third quarter of 2013.
• Advisory fee revenues were $88.0 million, a 231% increase compared with the fourth quarter of 2012 and a 125% increase compared with the third quarter of 2013.

Consolidated Compensation and Benefits Expenses

For the quarter ended December 31, 2013, compensation and benefits expenses were $353.2 million, which included merger-related expenses of $5.9 million, compared with $258.1 million in the fourth quarter of 2012 and $326.0 million in the third quarter of 2013, which included merger-related expenses of $28.6 million.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues was 61.5% in the fourth quarter of 2013, compared with 62.8% in the fourth quarter of 2012 and 62.0% in the third quarter of 2013. Transition pay, which primarily consists of amortization of retention awards, signing bonuses, and upfront notes, as a percentage of net revenues was 4.0% in the fourth quarter of 2013, compared with 5.0% in the fourth quarter of 2012 and 4.6% in the third quarter of 2013.

Consolidated Non-Compensation Operating Expenses

For the quarter ended December 31, 2013, non-compensation operating expenses were $131.3 million, which included $4.3 million of merger-related expenses, compared with $92.8 million in the fourth quarter of 2012 and $121.6 million in the third quarter of 2013, which included $4.8 million in merger-related expenses.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended December 31, 2013 was 22.5%, compared with 22.6% in the fourth quarter of 2012 and 24.4% in the third quarter of 2013.

Provision for Income Taxes

The effective income tax rate for the quarter ended December 31, 2013 was 33.9% compared with 28.3% in the fourth quarter of 2012.

Full-Year 2013

Global Wealth Management

For the year ended December 31, 2013, the Global Wealth Management segment generated record pre-tax operating income of $299.6 million, compared with $266.7 million in 2012. Net revenues for the year were a record $1.11 billion, compared with $991.6 million in 2012. The increase in net revenues from 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.

• The Private Client Group reported record net revenues of $1.0 billion, a 10% increase compared to $911.7 million in 2012.
• Stifel Bank reported record net revenues of $112.1 million, a 40% increase compared to $79.9 million in 2012.

Institutional Group

For the year ended December 31, 2013, the Institutional Group segment generated record pre-tax operating income of $142.9 million, compared with $101.5 million in 2012. Net revenues for the year were a record $861.2 million, compared with $604.7 million in 2012. The increase in net revenues from 2012 was primarily attributable to (1) an increase in advisory fees; (2) an increase in equity capital raising revenues; and (3) higher equity institutional brokerage revenues, offset by a reduction in other revenues as a result of gains recorded on the investment in Knight Capital during 2012. Net revenue growth, on a year-over-year basis, is attributable to the acquisitions of KBW and the Knight Capital Fixed Income business and, to a lesser extent, Miller Buckfire.

Institutional brokerage revenues were $421.6 million, a 30% increase compared to $323.5 million in 2012.

• Equity brokerage revenues were $232.4 million, a 54% increase compared to $151.3 million in 2012.
• Fixed income brokerage revenues were $189.2 million, a 10% increase compared to $172.2 million in 2012.

Investment banking revenues were a record $402.7 million, a 70% increase compared to $236.4 million in 2012.

• Equity capital raising revenues were $142.6 million, a 74% increase compared to $81.8 million in 2012.
• Fixed income capital raising revenues were $58.1 million, a 2% decrease compared to $59.0 million in 2012.
• Advisory fee revenues were $201.9 million, a 111% increase compared with to $95.5 million in 2012.

Consolidated Compensation and Benefits Expenses

For the year ended December 31, 2013, compensation and benefits expenses were $1.3 billion, which included merger-related expenses of $74.4 million, compared to $1.0 billion in 2012.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues for the year ended December 31, 2013 was 62.5%, compared with 63.4% in 2012. Transition pay as a percentage of net revenues for the year ended December 31, 2013 was 4.4%, compared with 4.6% in 2012.

Consolidated Non-Compensation Operating Expenses

For the year ended December 31, 2013, non-compensation operating expenses were $476.8 million, which included $30.6 million of merger-related expenses, compared with $354.2 million in 2012.

Excluding merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the year ended December 31, 2013 was 22.6%, compared with 22.2% in 2012.

Provision for Income Taxes

The effective income tax rate for the year ended December 31, 2013 was 6.7% compared with 36.8% in the 2012. The effective rate in 2013 reflects a $58.2 million U.S. tax benefit arising out of its investment in SN Canada in connection with discontinuing the business operations during 2013.

Assets and Capital

Assets

• Assets increased 29% to $9.0 billion as of December 31, 2013 from $7.0 billion as of December 30, 2012. The increase is primarily attributable to growth of Stifel Bank, the Company's bank subsidiary, which as of December 31, 2013 has grown its assets to $5.0 billion from $3.7 billion as of December 31, 2012.
• At December 31, 2013, the Company's Level 3 assets of $232.0 million, or 3% of total assets, consisted of $125.7 million of auction rate securities and $106.2 million of private equity, municipal securities, and other fixed income securities. The Company's Level 3 assets as a percentage of total assets measured at fair value was 8% at December 31, 2013.
• Non-performing assets as a percentage of total assets as of December 31, 2013 was 0.03%.

Capital

• The Company's Tier 1 leverage capital ratio was 15.4% at December 31, 2013 and Tier 1 risk-based capital ratio was 26.7% at December 31, 2013.
• At December 31, 2013, book value per common share was $32.30 based on 63.7 million shares outstanding.
• Stockholders' equity as of December 31, 2013 increased $564.2 million, or 38%, to $2.1 billion from $1.5 billion as of December 31, 2012.

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 and twelve months ended December 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 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. 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 acquisitions of the Knight Capital Fixed Income business and KBW and certain compensation and non-compensation operating expenses associated with the acquisitions of KBW, Miller Buckfire, the Knight Capital Fixed Income business, and the U.S. tax benefit arising out of the Company's investment in SN Canada.

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 and twelve months ended December 31, 2013 to the aforementioned expenses on a non-GAAP basis for the same period.

				Three Months Ended December 31, 2013										Year Ended December 31, 2013
(in 000s, except per share amounts)				Non-GAAP			Non-Core				GAAP			Non-GAAP			Non-Core				GAAP
Net revenues				$	564,681		$	(2,155	)		$	562,526		$	1,978,340		$	(4,894	)		$	1,973,446
Non-interest expenses:
	Compensation and benefits				347,263			5,944				353,207			1,236,991			74,395				1,311,386
	Non-compensation operating expenses				126,990			4,340				131,330			446,265			30,566				476,831
		Total non-interest expenses			474,253			10,284				484,537			1,683,256			104,961				1,788,217
	Income from continuing operations before income taxes				90,428			(12,439	)			77,989			295,084			(109,855	)			185,229
	Provision for income taxes				30,609			(4,746	)			25,863			110,426			(98,104	)			12,322
	Net income from continuing operations			$	59,819		$	(7,693	)		$	48,269		$	184,658		$	(11,751	)		$	172,907
Earnings per common share:
	Diluted			$	0.79		$	(0.10	)		$	0.69		$	2.51		$	(0.16	)		$	2.35
As a percentage of net revenues:
	Compensation and benefits				61.5							62.8			62.5							66.5
	Non-compensation operating expenses				22.5							23.3			22.6							24.1
	Income before income taxes				16.0							13.9			14.9							9.4

Conference Call Information

Stifel Financial Corp. will host its fourth quarter and full-year 2013 financial results conference call on Monday, February 24, 2014, 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 (888) 676-3684 and referencing conference ID #22974566. 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; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Century Securities Associates, Inc. and through Stifel Nicolaus Europe Limited and Keefe, Bruyette & Woods Limited in the United Kingdom 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																		Year Ended
(in thousands, except per share amounts)				12/31/13				12/31/12				% Change			9/30/13				% Change			12/31/13				12/31/12				% Change
Revenues:
	Commissions			$	152,451			$	131,327			16.1			$	145,837			4.5			$	598,949			$	501,434			19.4
	Principal transactions				118,815				97,515			21.8				122,583			(3.1	)			459,968				408,935			12.5
	Investment banking				158,860				72,938			117.8				92,851			71.1				448,060				281,280			59.3
	Asset management and service fees				83,928				68,971			21.7				76,710			9.4				305,639				257,981			18.5
	Other income				19,391				19,157			1.2				13,063			48.4				64,659				69,148			(6.5	)
		Operating revenues			533,445				389,908			36.8				451,044			18.3 `				1,877,275				1,518,778			23.6
	Interest revenue				40,711				29,977			35.8				39,130			4.0				142,539				108,705			31.1
		Total revenues			574,156				419,885			36.7				490,174			17.1				2,019,814				1,627,483			24.1
	Interest expense				11,630				8,602			35.2				11,535			0.8				46,368				33,370			39.0
		Net revenues			562,526				411,283			36.8				478,639			17.5				1,973,446				1,594,113			23.8
Non-interest expenses:
	Compensation and benefits				353,207				258,148			36.8				326,020			8.3				1,311,386				1,010,140			29.8
	Occupancy and equipment rental				42,178				33,589			25.6				41,288			2.2				158,268				128,365			23.3
	Communications and office supplies				25,692				19,291			33.2				26,122			(1.6	)			99,726				79,406			25.6
	Commission and floor brokerage				8,448				7,271			16.2				10,150			(16.8	)			37,225				29,610			25.7
	Other operating expenses				55,012				32,633			68.6				44,051			24.9				181,612				116,845			55.4
		Total non-interest expenses			484,537				350,932			38.1				447,631			8.2				1,788,217				1,364,366			31.1
Income from continuing operations before income taxes					77,989				60,351			29.2				31,008			151.5				185,229				229,747			(19.4	)
	Provision for income taxes				25,863				17,067			51.5				(43,921	)		(158.9	)			12,322				84,451			(85.4	)
Net income from continuing operations					52,126				43,284			20.4				74,929			(30.4	)			172,907				145,296			19.0
Discontinued operations:
	Loss from discontinued operations, net of tax				(3,857	)			(3,330	)		15.8				(5,239	)		(26.4	)			(10,894	)			(6,723	)		62.1
Net income				$	48,269			$	39,954			20.8			$	69,690			(40.8	)		$	162,013			$	138,573			16.9
Earnings per basic common share:
	Income from continuing operations			$	0.82			$	0.80			2.5			$	1.16			(29.3	)		$	2.67			$	2.71			(1.5	)
	Loss from discontinued operations				(0.06	)			(0.06	)		-				(0.08	)		(25.0	)			(0.17	)			(0.12	)		41.7
	Earnings per basic common share			$	0.76			$	0.74			2.5			$	1.08			(29.6	)		$	2.50			$	2.59			(3.5	)
Earnings per diluted common share:
	Income from continuing operations			$	0.69			$	0.69			-			$	1.00			(31.0	)		$	2.35			$	2.31			1.7
	Loss from discontinued operations				(0.05	)			(0.06	)		(16.7	)			(0.07	)		(28.6	)			(0.15	)			(0.11	)		36.4
	Earnings per diluted common share			$	0.64			$	0.63			1.6			$	0.93			(31.2	)		$	2.20			$	2.20			-
Weighted average number of common shares outstanding:
	Basic				64,859				53,835			20.5				64,706			0.2				63,568				53,563			18.7
	Diluted				75,495				63,301			19.3				75,191			0.4				73,504				62,937			16.8

(in thousands, except per share, employee and location amounts)
			12/31/13			12/31/12			% Change		9/30/13			% Change
Statistical Information:
	Book value per common share		$	32.30		$	27.24		18.6		$	31.46		2.7
	Financial advisors (3)			2,077			2,041		1.8			2,075		0.1
	Full-time associates			5,862			5,343		9.7			5,780		1.4
	Locations			357			340		5.0			355		0.6
	Total client assets		$	165,570,000		$	137,855,000		20.1		$	153,901,000		7.6

Global Wealth Management Summary Results of Operations (Unaudited)

				Three Months Ended															Year Ended
(in 000s)				12/31/13			12/31/12			% Change			9/30/13			% Change			12/31/13			12/31/12			% Change
Revenues:
	Commissions			$	104,149		$	93,043		11.9			$	99,427		4.7			$	410,238		$	361,871		13.4
	Principal transactions				55,809			53,542		4.2				58,658		(4.9	)			227,087			225,007		0.9
	Asset management and service fees				82,964			68,631		20.9				76,667		8.2				304,541			257,257		18.4
	Net interest				31,092			21,182		46.8				27,665		12.4				104,748			79,328		32.0
	Investment banking				9,568			10,818		(11.6	)			9,394		1.8				45,400			44,919		1.1
	Other income				9,254			6,559		41.1				2,858		223.9				26,165			23,215		8.4
		Net revenues			292,836			253,775		15.4				274,669		6.6				1,117,179			991,597		12.7
Non-interest expenses:
	Compensation and benefits				167,980			146,311		14.8				159,949		5.0				648,681			576,744		12.5
	Non-compensation operating expenses				45,834			38,727		18.3				42,592		7.6				168,926			148,184		14.0
		Total non-interest expenses			213,814			185,038		15.6				202,541		5.6				817,607			724,928		12.8
Income before income taxes				$	79,022		$	68,737		15.0			$	72,128		9.6			$	299,572		$	266,669		12.3
As a percentage of net revenues:
	Compensation and benefits				57.4			57.7						58.2						58.1			58.2
	Non-compensation operating expenses				15.6			15.2						15.5						15.1			14.9
	Income before income taxes				27.0			27.1						26.3						26.8			26.9

Stifel Bank & Trust (Unaudited)
Key Statistical Information
(in 000s, except percentages)			12/31/13				12/31/12				% Change			9/30/13				% Change
Other information:
	Assets		$	5,027,023			$	3,650,235			37.7			$	4,547,071			10.6
	Investment securities			3,062,549				2,327,316			31.6				2,949,080			3.8
	Retained loans, net			1,412,136				822,711			71.6				1,061,313			33.1
	Loans held for sale			109,110				214,531			(49.1	)			75,440			44.6
	Deposits			4,661,444				3,346,133			39.3				4,228,405			10.2
	Allowance as a percentage of loans			0.89	%			0.99	%						1.23	%
	Non-performing assets as a percentage of total assets			0.03	%			0.06	%						0.32	%

Institutional Group Summary Results of Operations (Unaudited)

				Three Months Ended															Year Ended
(in 000s)				12/31/13			12/31/12			% Change			9/30/13			% Change			12/31/13			12/31/12			% Change
Revenues:
	Commissions			$	48,302		$	38,284		26.2			$	46,410		4.1			$	188,712		$	139,564		35.2
	Principal transactions				63,005			43,973		43.3				63,925		(1.4	)			232,880			183,927		26.6
	Capital raising				61,311			35,502		72.7				44,270		38.5				200,732			140,842		42.5
	Advisory fees				87,981			26,618		230.5				39,186		124.5				201,928			95,519		111.4
	Investment banking				149,292			62,120		140.3				83,456		78.9				402,660			236,361		70.4
	Other (4)				6,683			16,316		(59.0	)			11,341		(41.1	)			36,906			44,802		(17.6	)
		Net revenues			267,282			160,693		66.3				205,132		30.3				861,158			604,654		42.4
Non-interest expenses:
	Compensation and benefits				165,779			105,025		57.8				119,874		38.3				524,870			380,185		38.1
	Non-compensation operating expenses				52,913			33,990		55.7				50,272		5.3				193,399			122,982		57.3
		Total non-interest expenses			218,692			139,015		57.3				170,146		28.5				718,269			503,167		42.7
Income before income taxes				$	48,590		$	21,678		124.1			$	34,986		38.9			$	142,889		$	101,487		40.8
As a percentage of net revenues:
	Compensation and benefits				62.0			65.4						58.4						60.9			62.9
	Non-compensation operating expenses				19.8			21.1						24.5						22.5			20.3
	Income before income taxes				18.2			13.5						17.1						16.6			16.8

Institutional Group Brokerage & Investment Banking Revenues (Unaudited)

					Three Months Ended															Year Ended
(in 000s)					12/31/13			12/31/12			% Change			9/30/13			% Change			12/31/13			12/31/12			% Change
Institutional brokerage:
	Equity				$	60,204		$	38,659		55.7			$	58,677		2.6			$	232,392		$	151,308		53.6
	Fixed income					51,103			43,598		17.2				51,658		(1.1	)			189,200			172,183		9.9
Institutional brokerage						111,307			82,257		35.3				110,335		0.9				421,592			323,491		30.3
Investment banking:
	Capital raising:
		Equity				46,634			16,947		175.2				30,739		51.7				142,636			81,818		74.3
		Fixed income				14,677			18,555		(20.9	)			13,531		8.5				58,096			59,024		(1.6	)
			Capital raising			61,311			35,502		72.7				44,270		38.5				200,732			140,842		42.5
	Advisory fees:					87,981			26,618		230.5				39,186		124.5				201,928			95,519		111.4
Investment banking					$	149,292		$	62,120		140.3			$	83,456		78.9			$	402,660		$	236,361		70.4

(1) A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed under "Non-GAAP Financial Measures."
(2) A reconciliation of the Company's GAAP results to these non-GAAP measures is discussed under "Non-GAAP Financial Measures."
(3) Includes 143, 151 and 145 independent contractors at December 31, 2013 and 2012 and September 30, 2013, respectively.
(4) Includes net interest and other income.