Stifel Financial
Annual Report 2011

Plain-text annual report

STABILITY GROWTH EXPERIENCE 2011 ANNUAL REPORT BOKF BPT CAH CSL CUK CRS CSV CASC CASY CSH CAT CATYBOKF BPT CAH CSL CUK CRS CSV CASC CASY CSH CAT CATYALJ ALTR ALTE APSA SF AWC ACH LNT ATK AMOT AWH BSICompany Description Stifel Financial Corp. is the holding company for Stifel, Nicolaus & Company, Incorporated, a full-service brokerage and investment banking firm established in 1890 and headquartered in St. Louis, Missouri, as well as other financial services subsidiaries. Stifel clients are primarily served through Stifel, Nicolaus & Company, Incorporated in the U.S., through Stifel Nicolaus Canada Inc. in Canada, and through Stifel Nicolaus Europe Limited in the United Kingdom and Europe. Each of the 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. Statement of Commitment To Our Associates: current and future, our commitment is to provide an entrepreneurial environment that encourages unconfined, long-term thinking. We seek to reward hard-working team players that devote their energy and attention to client needs. At work, at home, and in their communities, we seek to be their Firm of Choice. To Our Clients: individual, institutional, corporate, and municipal, our commitment is to listen and consistently deliver innovative financial solutions. Putting the welfare of clients and community first, we strive to be the Advisor of Choice in the industry. Pursuit of excellence and a desire to exceed clients’ expectations are the values that empower our Company to achieve this status. To Our Shareholders: small and large, our commitment is to create value and maximize your return on investment through all market cycles. By achieving the status of Firm of Choice for our professionals and Advisor of Choice for our clients, we are able to deliver value to our shareholders as their Investment of Choice. Investment of Choice + Advisor of Choice Firm of Choice 320. 89.0 98.5 24 288.9 37.4 12.4 -00.28 19.2 32.7 76.4 44.2 90.56 3.28 44.20 76.4 19.2 4.28 5.57 8.94 -.04 32.5 3.28 44.20 76.4 19.2 4.28 5.57 8.94 -.04 32.5 3.2827.89 5.32 -.09 5.78 87.2 64 21.3 9.98 78.527.89 5.32 -.09 5.78 87.2 64 21.3 9.98 78.5 Financial Highlights Operating Results: in thousands, except per share amounts Total Revenues Net Income Earnings Per Diluted Share1 Core Earnings2 Core Earnings Per Diluted Share1,2 Financial Position: in thousands, except per share amounts 2007 2008 2009 2010 2011 $793,090 $32,170 $0.83 $66,788 $1.73 $888,847 $1,102,870 $1,395,237 $1,441,909 $55,502 $1.32 $71,380 $1.69 $75,798 $1.56 $75,798 $1.56 $1,907 $0.03 $84,134 $1.33 $124,760 $113,562 $2.16 $1.80 2007 2008 2009 2010 2011 Total Assets Stockholders’ Equity Book Value Per Share1 $1,499,440 $1,558,145 $3,167,356 $4,213,115 $4,951,900 $424,637 $593,185 $873,446 $1,253,883 $1,302,105 $12.24 $15.12 $19.24 $24.42 $25.10 1 All per share amounts reflect the three-for-two stock splits in June 2008 and April 2011. 2 Core Earnings and Core Earnings Per Diluted Share, non-GAAP measures, represent GAAP net income and GAAP diluted earnings per share adjusted for acquisition-related charges, principally compensation charges related to the acquisitions of Legg Mason Capital Markets in 2005, Ryan Beck in 2007, and Thomas Weisel Partners Group, Inc. in 2010, and litigation-related expenses associated with the civil lawsuit and related regulatory investigation in connection with the ongoing matter with five Southeastern Wisconsin school districts in 2011. See Reconciliation of GAAP Net Income to Core Earnings on the inside back cover. Total Revenues: In millions Core Earnings2: In millions Core Earnings Per Diluted Share1,2 1,400 1,200 1,000 800 600 400 200 0 5,000 4,000 3,000 2,000 1,000 0 120 100 80 60 40 20 0 07 08 09 10 11 2.25 2 1.75 1.5 1.25 1 .75 .5 .25 0 07 08 09 10 11 07 08 09 10 11 Total Assets: In millions Stockholders’ Equity: In millions Book Value Per Share1 1,400 1,200 1,000 800 600 400 200 0 25 20 15 10 5 0 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 1 21 34 78 5.27 0.05 -.032 17 4.26 27 92 1.65 53 Shareholder Letter Dear Fellow Shareholders, Clients, and Associates: 2011 marked our 16th consecutive year of record net revenues. This record is the result of three distinguishing factors: experience, growth, and stability. • Experience: 121 years of operating history with more than 5,000 experienced professionals striving to exceed our clients’ expectations. • Growth: Achieved through both organic channels and acquisitions, Stifel continues to build the premier middle- market investment bank and full-service investment firm. • Stability: Balanced business model coupled with a very solid capital base to fund future growth. Our record is an accomplishment, particularly in light of the continued headwinds faced by the financial sector. In 2011, our industry was beset by uncertainty, the result of the U.S. debt crisis and the first credit rating downgrade in our country’s history. This was accompanied by heightened regulation, political gridlock, and overall weakness in the economy. Despite these factors, our Company continued on its path of growth through the October 2011 acquisition of Stone & Youngberg, a leading financial services firm specializing in municipal finance and fixed income securities. This combination represents our ninth acquisition since the transformational Legg Mason Capital Markets business in 2005. Each acquisition since 2005 has expanded and strengthened our capabilities in a manner that targets our strategic objectives. We continue to review all opportunities in a thoughtful and disciplined manner, with the goal of building the premier middle-market investment bank and full-service investment firm. Our Company’s 2011 Performance Stifel Financial Corp. reported record net revenues of $1.4 billion, an increase of 3% over our 2010 results. Our record revenues are the result of the stability and balance of our business model. The consistency of our Global Wealth Management segment’s revenue, which grew 8%, offset the decline in revenue of our Institutional Group segment, which was not immune to lower industry volumes and cautious risk-taking by many of our clients. While 2011 was another record year, our growth is better represented by our compound annual growth rate since 2005, which is an impressive 32%. In 2011, core net income, excluding litigation-related expenses and merger-related expenses, decreased 9%, and non-GAAP diluted EPS decreased 17%, reflecting the challenging conditions present during the year. We remain in a solid capital position, with $1.3 billion in stockholders’ equity and a book value per share of $25.10. While our stock performance declined in 2011, its drop was in line with the performance of the AMEX Securities Broker- Dealer Index and has since rallied. Over the past five years, Stifel has outperformed our nearest competitors by a wide margin, increasing 84%, or 13% on a compound annual growth rate, compared with a decline of 66% and 19%, respectively, for the AMEX Securities Broker-Dealer Index. 2 Notable Accomplishments in 2011 • Our Global Wealth Management segment, which consists of our Private Client Group and Stifel Bank, had record net revenues of $908.2 million, an 8% increase from a record year in 2010. • We added 150 financial advisors and opened 17 new offices, while total client assets increased 8% to $119.4 billion. • Stifel Bank’s assets increased 28% to $2.3 billion from $1.8 billion in 2010. • The Institutional Group segment generated net revenues of $507.4 million, which represents a 6% decline from 2010. • We served as lead or co-manager on 190 equity and debt offerings, which raised a total of $39.2 billion. • Stifel’s Equity Research Group again ranked #2 in FT/ StarMine’s World’s Top Analysts Survey, with a total of 15 individual awards in 11 industries, including nine #1 rankings. • Stifel formed a strategic alliance with Miller Buckfire, a leading restructuring and advisory firm. This alliance will broaden both firms’ capabilities by making Miller Buckfire’s restructuring advisory capabilities available to Stifel’s clients and Stifel’s capital markets expertise available to Miller Buckfire’s clients. • We successfully integrated Stone & Youngberg, a leading, California-based firm specializing in municipal finance and fixed income securities. On a combined basis, we served as senior or co-manager on 600 tax-exempt issues with a total par value of $42 billion in 2011, while ranking as the #1 underwriter in the state of California and #2 nationwide in K-12, both for negotiated transactions by par amount. • Our market capitalization ended the year at $1.7 billion. • Stifel purchased its downtown St. Louis headquarters building in November 2011. • Stifel repurchased 1.7 million shares in 2011, or $48.5 million, at an average price of $28.12. The Company currently has an additional 4.3 million shares authorized under its existing Board authorization. • In January 2012, Stifel issued $175 million principal amount of 6.70% Senior Notes due 2022. Looking Ahead in an Election Year Given that we are in an election year, we would be remiss if we did not mention the need for leadership in Washington. Tackling our country’s fiscal issues is a difficult challenge that requires tough decisions. In our view, the expiration of the Bush tax cuts coupled with the enactment of automatic spending cuts required in the current deficit-reduction deal could put this country into a recession in 2013. With a growing deficit, ballooning entitlements, high unemployment, burdensome regulations, and the highest statutory corporate tax rate in the developed world, our country and businesses would 320. 89.0 98.5 24 288.9 37.4 12.4 -00.28 19.2 32.7 76.4 44.2 90.56 3.28.46 -.38 50.3 43 101 77.2 3.6 2.12 9.56 7.98.46 -.38 50.3 43 101 77.2 3.6 2.12 9.56 7.98 benefit from fiscal policy initiatives that would foster free- market capitalism and encourage an entrepreneurial business environment. We firmly believe that prudent fiscal policies, with specific focus on the country’s deficit, along with a fair tax system would provide a foundation for economic growth and bolster private sector investment to further the recovery. Specifically, we advocate lowering the statutory corporate tax rate to a flat 25%. With respect to the deficit, we believe a framework already exists. The Simpson-Bowles plan was a bipartisan solution aimed at managing the national budget. While neither we nor anyone agrees with every aspect of the proposed plan, it is this very fact that makes it the plan that we should implement. On the positive side, the JOBS Act recently signed into law to jumpstart small business growth is a very encouraging development, which has some favorable implications for our business. This Act effectively lowers the cost of capital and focuses on job creation. We are encouraged by the quick process and developments to streamline the initial public offering process for small, entrepreneurial companies. Looking forward for Stifel Financial, we believe the events over the past few years provide us a tremendous opportunity to build our capabilities while gaining market share. Simply, the structural changes required by Dodd-Frank and Basel 3 will require that the large global firms both shrink and restructure their businesses in order to be capital compliant while also achieving acceptable return on invested capital. The new regulatory framework generally does not burden us, and our unlevered balance sheet provides us ample dry powder to take advantage of opportunities. We have built this business over the past several years by prudently evaluating opportunities and executing on those that provide acceptable risk-adjusted return on investment, always measured on a long-term horizon. We plan to continue to follow this simple yet effective plan. In short, Stifel is well positioned to gain market share and deliver shareholder value. We look forward to 2012 and the opportunities it may present. As always, we sincerely thank our shareholders and clients for their support as well as our associates for their continued commitment to excellence. Ronald J. Kruszewski Chairman, President, and Chief Executive Officer Ronald J. Kruszewski Chairman, President, and Chief Executive Officer Thomas W. Weisel Chairman of the Board   Thomas W. Weisel Chairman of the Board 3 91 3.8 6.11 4.73 0.05 81 14.45 4.26 27 93 1.65 53 Board of Directors Stifel Financial Corp. Board of Directors and Officers Ronald J. Kruszewski* Chairman of the Board, President, and Chief Executive Officer Robert E. Grady* Partner and Managing Director Cheyenne Capital Fund Thomas W. Weisel* Chairman of the Board Bruce A. Beda* Chief Executive Officer Kilbourn Capital Management, LLC Michael W. Brown* Former Vice President and Chief Financial Officer Microsoft Corporation Charles A. Dill* Partner Two Rivers Associates John P. Dubinsky* President and Chief Executive Officer Westmoreland Associates, LLC President and Chief Executive Officer CORTEX Richard F. Ford* Retired Managing General Partner Gateway Associates, LP *Director Frederick O. Hanser* Board of Managers Retired Vice Chairman St. Louis Cardinals, LLC Richard J. Himelfarb* Vice Chairman of the Board Chairman, Investing Banking, Stifel Nicolaus Alton F. Irby III* Founding Partner London Bay Capital LLC Robert E. Lefton* President and Chief Executive Officer Psychological Associates, Inc. Thomas P. Mulroy* Senior Vice President Co-Head of Institutional Group Victor Nesi* Senior Vice President Co-Head of Institutional Group James M. Oates* Chairman Hudson Castle Group, Inc. Ben A. Plotkin* Vice Chairman of the Board Kelvin R. Westbrook* President and Chief Executive Officer KRW Advisors, LLC James M. Zemlyak* Senior Vice President and Chief Financial Officer Bernard N. Burkemper Senior Vice President, Treasurer, and Controller S. Chad Estep Senior Vice President David M. Minnick Senior Vice President, General Counsel, and Corporate Secretary David D. Sliney Senior Vice President Stifel, Nicolaus & Company, Incorporated Board of Directors Ronald J. Kruszewski Chairman of the Board and Chief Executive Officer James M. Zemlyak Executive Vice President Chief Operating Officer Richard J. Himelfarb Executive Vice President Chairman, Investment Banking Michael F. Imhoff Senior Vice President Director, Denver Municipal Trading Thomas R. Kendrick IV Senior Vice President Director, Syndicate Thomas P. Mulroy Executive Vice President Director, Equity Capital Markets J. Joseph Schlafly III Senior Vice President Director, Private Markets David D. Sliney Senior Vice President Director, Strategic Planning, Technology, and Operations Hugo J. Warns III, CFA Senior Vice President Director, Equity Research 4 320. 89.0 98.5 24 288.9 37.4 12.4 -00.28 19.2 32.7 76.4 44.2 90.56 3.2812.9 3.26 4.19 2.10 10 31 7.27 26 5.29 2.1112.9 3.26 4.19 2.10 10 31 7.27 26 5.29 2.11Alabama Mobile – (251) 344-3600* Montgomery – (334) 213-1600* Arizona Green Valley – (520) 393-1500* Phoenix – (602) 952-2500* Phoenix – (602) 794-4000• Scottsdale – (480) 991-3277* Tucson – (520) 209-7400* Arkansas Little Rock – (501) 821-3680* Rogers – (479) 271-8350* California Auburn – (530) 889-8775* Bakersfield – (661) 321-7300* Bonsall – (760) 643-1235* Carlsbad – (760) 804-3400* Chico – (530) 891-1133* Del Mar – (858) 755-1614* Fort Jones – (530) 468-2408* Fresno – (559) 437-4060* Grass Valley – (530) 273-9877* Irvine – (949) 271-5100* Lincoln – (916) 409-1300* Los Angeles – (310) 208-1329* Los Angeles – (213) 443-5230• Monterey – (831) 333-0963* Murrieta – (951) 461-7220* Newport Beach – (949) 252-1324* Oroville – (530) 534-8021* Oxnard – (805) 604-6700* Palm Desert – (760) 834-6900* Paradise – (530) 872-5110* Pasadena – (626) 564-0311* Paso Robles – (805) 238-3080* Redding – (530) 244-7199* Redlands – (909) 307-8478* Roseville – (916) 626-3322* San Francisco – (415) 364-2500*• San Francisco – (415) 445-2300*• San Jose – (408) 985-6811* San Juan Capistrano – (949) 234-2340* San Luis Obispo – (805) 783-2921* Santa Rosa – (707) 542-3521* Visalia – (559) 622-1040* Walnut Creek – (925) 746-6560* Westlake Village – (805) 496-8150* Colorado Colorado Springs – (719) 442-2646* Denver – (303) 534-1180* Denver – (303) 296-2300• Fort Collins – (970) 267-9666*• Glenwood Springs – (970) 945-5275* Greenwood Village – (720) 963-7900* Pueblo – (719) 546-0470* Connecticut Avon – (860) 677-2132* Hamden – (203) 772-7200* Hartford – (860) 249-2341* New London – (860) 440-3373* District of Columbia Washington – (202) 756-7760• Florida Boca Raton – (561) 982-2600*• Cape Coral – (239) 242-2358* Daytona Beach – (386) 947-6000* Gainesville – (352) 373-2500* Melbourne – (321) 757-7209* Naples – (239) 417-6740* Ocala – (352) 237-2200* Palm Beach Gardens – (561) 615-5300* Pensacola – (850) 436-2000* Ponte Vedra Beach – (904) 543-7120* Sarasota – (941) 366-5443* Vero Beach – (772) 299-4967* Georgia Atlanta – (404) 869-3576• Augusta – (706) 737-0860* Columbus – (706) 660-3940* Gainesville – (770) 531-1103* LaGrange – (706) 845-7888* Macon – (478) 746-6262* Savannah – (912) 598-3010* Valdosta – (229) 293-1125* Warner Robins – (478) 953-1313* Hawaii Honolulu – (808) 521-2601* Maui – (808) 871-2040* Idaho Idaho Falls – (208) 524-6900* Ketchum – (208) 622-8720* Illinois Alton – (618) 463-4697* Belleville – (618) 233-5685* Champaign – (217) 359-4686* Chicago – (312) 726-5900*• Decatur – (217) 429-4290* Edwardsville – (618) 659-3780* Geneva – (630) 845-7900* Jacksonville – (217) 243-8060* Lake Forest – (847) 615-0677* Mattoon – (217) 235-0353* Orland Park – (708) 364-0034* Quincy – (217) 228-0053* Rockford – (815) 654-5500* Springfield – (217) 726-0875* Waterloo – (618) 939-9400* Indiana Anderson – (765) 649-2339* Crown Point – (219) 756-0100* Fort Wayne – (260) 459-3989* Indianapolis – (317) 706-1420* Indianapolis – (317) 571-4600* South Bend – (574) 288-3040* Iowa Ames – (515) 233-4064* Atlantic – (712) 243-5500* Des Moines – (515) 699-8510• Mason City – (641) 423-2323* Sioux City – (712) 252-6920* Storm Lake – (712) 732-2663* Waterloo – (319) 233-3400* Kansas Lawrence – (785) 842-7800* Manhattan – (785) 776-1066* Overland Park – (913) 345-4200*• Branch Locations Topeka – (785) 271-1300* Wichita – (316) 264-6321* Kentucky Danville – (859) 236-1588* Louisville – (502) 425-1230* Shelbyville – (502) 633-7170* Louisiana New Orleans – (504) 525-7711*• Maryland Annapolis – (410) 280-9711• Baltimore – (410) 659-2300* Baltimore – (443) 224-1400• Bel Air – (410) 809-6700* Bethesda – (301) 841-3776* Bethesda – (301) 941-2400• Cumberland – (240) 362-7175* Frederick – (240) 415-7121* Hunt Valley – (410) 527-1138* Massachusetts Boston – (617) 235-7800* Boston – (617) 488-4100• Harwich – (508) 432-2079* Hyannis – (508) 420-7000* Longmeadow – (413) 565-8100* Wellesley – (781) 239-2800* Michigan Ann Arbor – (734) 213-5103* Birmingham – (248) 594-3879• Fremont – (231) 924-0250* Grand Haven – (616) 846-3620* Grand Rapids – (616) 942-1717* Grosse Pointe Farms – (313) 886-4493* Okemos – (517) 333-3576*• Portage – (269) 384-5024* Port Huron – (810) 989-7950* Shelby Township – (586) 566-4999* St. Joseph – (269) 985-4040* Traverse City – (231) 946-4975* Traverse City – (231) 995-7000* Minnesota Baxter – (218) 825-8523* Golden Valley – (763) 542-3700* Mankato – (507) 625-3127* Minneapolis – (612) 455-5555*• New Ulm – (507) 354-8589* Rochester – (507) 292-9760* Rochester – (507) 288-9622* St. Cloud – (320) 253-1300* Virginia – (218) 741-7744* Walker – (218) 547-3526* Wayzata – (952) 473-6010* Mississippi Gulfport – (228) 863-0881* Meridian – (601) 693-2755* Ridgeland – (601) 898-3656* Missouri Cape Girardeau – (573) 335-8454* Chesterfield – (636) 530-6600* Chillicothe – (660) 646-8565* Clayton – (314) 862-8800* Columbia – (573) 874-2199* Frontenac – (314) 872-8900* Jefferson City – (573) 635-7997* Joplin – (417) 781-6161* 8.76 5.26 -.47 .65 2.12 14.45 7.82 5.23 42 1.65 53.11 5.78 9.5Branch Locations Kansas City – (816) 531-7777* Kirkwood – (314) 909-0238* O’Fallon – (636) 695-2650* Rolla – (573) 364-8930* Springfield – (417) 886-2855* St. Louis – (314) 342-2000*• Montana Billings – (406) 252-2447* Bozeman – (406) 586-1385* Great Falls – (406) 761-3500* Kalispell – (406) 755-9400* Nebraska Lincoln – (402) 421-1019* Omaha – (402) 955-1033* Nevada Reno – (775) 786-8500* New Hampshire New London – (603) 526-8130* Portsmouth – (603) 433-1774* New Jersey Florham Park – (973) 549-4000*• Fort Lee – (201) 585-6150* Marlton – (856) 810-4800* Princeton – (609) 799-1180* Ramsey – (201) 669-3030* Roseland – (973) 533-4000*• Roxbury – (973) 598-8300* Shrewsbury – (732) 450-9000* New York Binghamton – (607) 651-9540* Garden City – (516) 663-5200* Goshen – (845) 291-1131* Goshen – (845) 615-2300* Hauppauge – (631) 360-5700* New York – (212) 847-6500* New York – (212) 742-8923• New York – (212) 271-3700• Olean – (716) 372-2839* Oyster Bay – (516) 624-2700* Poughkeepsie – (845) 471-8080* White Plains – (914) 694-8600* North Carolina Brevard – (828) 877-5856* Chapel Hill – (919) 932-3220• Charlotte – (704) 554-6039* Fayetteville – (910) 438-0715* Greenville – (252) 353-2052* Pinehurst – (910) 246-5352* Raleigh – (919) 645-5900* Rocky Mount – (252) 443-2724* Southport – (910) 454-1500* Wilmington – (910) 679-2130* North Dakota Bismarck – (701) 255-4225* Dickinson – (701) 225-9101* Grand Forks – (701) 746-1365* Jamestown – (701) 251-1152* Williston – (701) 572-4527* Ohio Alliance – (330) 823-7666* Boardman – (330) 599-5900* Canfield – (330) 599-5940* Canfield – (330) 533-7191* Canton – (330) 454-5390* Cincinnati – (513) 794-0030* Cleveland – (216) 623-1170• Columbus – (614) 463-9360* Columbus – (614) 227-3792• Dayton – (937) 847-8214* Dublin – (614) 789-9354* Fairlawn – (330) 668-6257* Granville – (740) 344-2600* Kent – (330) 678-2151* Lancaster – (740) 654-5996* Lima – (419) 227-3331* Mansfield – (419) 524-4009* Marion – (740) 386-6911* Marysville – (937) 644-8686* Pepper Pike – (216) 593-7400* Salem – (330) 337-9911* Sandusky – (419) 625-5432* Steubenville – (740) 264-7254* Warren – (330) 393-1567* Westlake – (440) 835-4170* Oklahoma Muskogee – (918) 683-3700* Oklahoma City – (405) 842-0402* Tulsa – (918) 877-3361* Oregon Eugene – (541) 345-6003* Medford – (541) 770-7350* Portland – (503) 499-6260* Portland – (503) 944-3240• Salem – (503) 315-4993* Pennsylvania Allentown – (610) 782-5400* Altoona – (814) 944-2065* Beaver – (724) 728-0436* Bethel Park – (412) 854-7500* Bethlehem – (610) 317-4999* Bloomsburg – (570) 380-6140* Camp Hill – (717) 730-1100* Conshohocken – (610) 567-1900* Franklin – (814) 432-3169* Greensburg – (724) 837-2300* Johnstown – (814) 269-9211* Lebanon – (717) 279-3510* Oil City – (814) 678-6552* Philadelphia – (267) 256-0777* Philadelphia – (215) 861-7150• Pittsburgh – (412) 456-0200*• Pittsburgh – (412) 250-3400* Sharon – (724) 346-4175* Warren – (814) 726-7067* Wilkes-Barre – (570) 200-3060* Yardley – (215) 504-1600* York – (717) 741-8900* Rhode Island Providence – (401) 421-1045* South Carolina Anderson – (864) 225-7177* Bluffton – (843) 706-6150* Florence – (843) 665-7599* Hartsville – (843) 383-8401* Sumter – (803) 469-7070* South Dakota Mitchell – (605) 996-8440* Tennessee Jackson – (731) 664-4435* Memphis – (901) 766-0822* Nashville – (615) 277-7000* Texas Corpus Christi – (361) 693-3060* Dallas – (214) 706-9450*• Denton – (940) 382-8645* Houston – (281) 655-4000* Houston – (713) 655-1161• Longview – (903) 753-1020* San Antonio – (210) 525-8048• Texarkana – (903) 792-3305* Wichita Falls – (940) 720-7610* Vermont Manchester – (802) 362-4111* St. Johnsbury – (802) 751-0500* Virginia Charlottesville – (434) 974-8300* Charlottesville – (434) 984-7100* Lynchburg – (434) 845-1000* Martinsville – (276) 632-7151* Radford – (540) 633-5740* Richmond – (804) 727-6400• Richmond – (804) 727-6767• Washington Seattle – (206) 654-3900* Wenatchee – (509) 663-8604* Wisconsin Appleton – (920) 991-1415* Appleton – (920) 735-9511* Brookfield – (262) 794-1000*• Eau Claire – (715) 852-1990* Green Bay – (920) 437-2555* La Crosse – (608) 785-1727* Madison – (608) 241-9516* Mequon – (262) 243-3125* Milwaukee-Glendale – (414) 276-5014* Oconomowoc – (262) 560-3800* Racine – (262) 554-4660* Rhinelander – (715) 362-1719* Stevens Point – (715) 343-5688* Wausau – (715) 848-2911* West Bend – (262) 338-5889* Wyoming Casper – (307) 232-9450* Sheridan – (307) 672-3434* Stifel Bank & Trust St. Louis – (314) 317-6900 Stifel Capital Advisors New York – (212) 430-6200• Stifel Nicolaus Canada Calgary, Alberta – (403) 265-1939• Toronto, Ontario – (416) 815-0888• Stifel Nicolaus Europe Limited London, England – 011-44-207-557-6030• London, England – 011-44-203-205-3601• Madrid, Spain – 011-34-91-458-5500• Geneva, Switzerland – 011-41-22-994-0606• * Private Client Group Office • Institutional Group Office 15.42 76 -.33 10.85 3.26 -.32 50.5 6.21 5.4715.42 76 -.33 10.85 3.26 -.32 50.5 6.21 5.47Shareholder Information Annual Meeting The 2012 annual meeting of stockholders will be held at Stifel’s headquarters, One Financial Plaza, 501 North Broadway, 2nd Floor, St. Louis, Missouri, on Wednesday, June 6, 2012, at 11:00 a.m. Transfer Agent The transfer agent and registrar for Stifel Financial Corp. is Computershare Trust Company, n.a., Canton, Massachusetts. Stock Listings The common stock of Stifel Financial Corp. is traded on the New York Stock Exchange and Chicago Stock Exchange under the symbol “SF.” The high/low sales prices for Stifel Financial Corp. common stock for each full quarterly period for the calendar years are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Sales Price 2011 2010 High Low High Low $ 49.94 $ 40.68 $ 39.75 $ 33.07 48.91 40.44 34.50 34.97 23.09 23.72 39.67 33.33 42.09 28.70 28.45 29.25 Reconciliation of GAAP Net Income to Core Earnings A reconciliation of GAAP Net Income to Core Earnings and GAAP Net Income Per Diluted Share, the most directly comparable measure under GAAP, to Core Earnings Per Diluted Share is included in the table below. (in thousands, except per share amounts) 2007 2008 2009 2010 2011 GAAP Net Income Acquisition-related revenues, net of tax Acquisition-related charges, net of tax Compensation Other non-compensation charges Core Earnings Earnings Per Share: $32,170 185 $55,502 3 $75,798 - - $ 1,907 1,261 $ 84,134 69 29,947 4,486 15,538 337 - - - - 110,314 11,278 1,064 28,295 $66,788 $71,380 $75,798 $124,760 $ 113,562 GAAP Earnings Per Diluted Share Acquisition-related charges Core Earnings Per Diluted Share $ $ 0.83 0.90 1.73 $ $ 1.32 0.37 1.69 $ $ 1.56 - - 1.56 $ $ 0.03 2.13 2.16 $ $ 1.33 0.47 1.80 All stock price and per share amounts presented above reflect the three-for-two stock splits distributed in June 2008 and April 2011. 89.32 8.66 14.12 21 5.20 11.14 7.42 288 24.19 5.23 Stifel Financial Corp. One Financial Plaza | 501 North Broadway | St. Louis, Missouri 63102 (314) 342-2000 | (800) 488-0970 BOKF BPT CAH CSL CUK CRS CSV CASC CASY CSH CAT CATYBOKF BPT CAH CSL CUK CRS CSV CASC CASY CSH CAT CATYALJ ALTR ALTE APSA SF AWC ACH LNT ATK AMOT AWH BSI

Continue reading text version or see original annual report in PDF format above