More annual reports from Stifel Financial:
2023 ReportPeers and competitors of Stifel Financial:
GreenhillRya n Beck & Co. • Legg Mason Ca pi ta l Ma r ke t s Butl er Wick • Fi rst Ser vice F inan cial Com pany Hanifen, Imhoff Inc. • M JSK Private Cli e nt Group Hanifen, Imhoff Inc. Thomas Weisel Par tners • Ston e & Young be rg Miller Bu ckfi re • Keefe, Bruyet te & Woods Keefe, Bruyette & Woods Ryan Beck & Co. Rya n Beck & Co. • Legg Mason Ca pi ta l Ma r ke t s Bu tl er Wick • Fi rst S er vice Fina n cia l Com pany Hanifen, Imhoff Inc. • M JSK Private Cli e nt Group Thomas Weisel Par tners • Ston e & Young be rg Stone & Youngberg Miller Bu ckfi re • Keefe, Bruyet te & Woods Rya n Beck & Co. • Legg Mason Ca pi ta l Ma r ke t s Butl er Wick • Fi rst Ser vice F inan cial Com pany Hanifen, Imhoff Inc. • M JSK Private Cli e nt Group One Company | One Culture Thomas Weisel Par tners • Ston e & Young be rg Miller Bu ckfi re • Keefe, Bruyet te & Woods “We think you’ll like it here.” Rya n Beck & Co. • Legg Mason Ca pi ta l Ma r ke t s Butl er Wick • Fi rst Ser vice F inan cial Com pany Hanifen, Imhoff Inc. • M JSK Private Cli e nt Group MJSK P rivate Cli ent G roup Thomas Weisel Par tners • Ston e & Young be rg Miller Bu ckfi re • Keefe, Bruyet te & Woods Miller Bu ckfi re Rya n Beck & Co. • Legg Mason Ca pi ta l Ma r ke t s Fi rst Ser vice Fi nancial Company Butl er Wick • Fi rst Ser vice F inan cial Com pany Hanifen, Imhoff Inc. • M JSK Private Cli e nt Group Thomas Weisel Par tners Thomas Weisel Par tners • Ston e & Young be rg Miller Bu ckfi re • Keefe, Bruyet te & Woods Legg Mason Capital Market s Rya n Beck & Co. • Legg Mason Ca pi ta l Ma r ke t s Butl er Wick • Fi rst Ser vice F inan cial Com pany Butle r Wick Hanifen, Imhoff Inc. • M JSK Private Cli e nt Group Thomas Weisel Par tners • Ston e & Young be rg 2012 Annual Report 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, 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. 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 Operating Results: in thousands, except per share amounts 2008 2009 2010 2011 2012 Financial Highlights Total Revenues $888,847 $1,102,870 $1,395,237 $1,441,909 Net Income Earnings Per Diluted Share1 Core Earnings2 Core Earnings Per Diluted Share1,2 Financial Position: in thousands, except per share amounts $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 $1,646,033 $138,573 $2.20 $138,573 $2.20 2008 2009 2010 2011 2012 Total Assets Stockholders’ Equity Book Value Per Share1 $1,558,145 $3,167,356 $4,213,115 $4,951,900 $593,185 $873,446 $1,253,883 $1,302,105 $6,966,140 $1,494,661 $15.12 $19.24 $24.42 $25.10 $27.24 1 All per share amounts reflect the three-for-two stock splits in 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 acquisition of 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 1,600 1,400 1,200 1,000 800 600 400 200 0 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 140 120 100 80 60 40 20 0 08 09 10 11 12 2.25 2 1.75 1.5 1.25 1 .75 .5 .25 0 08 09 10 11 12 08 09 10 11 12 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 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12 1 Shareholder Letter Dear Fellow Shareholders, Clients, and Associates: Ten years ago, the theme of our 2002 Annual Report was “We See Opportunity.” We recognized the opportunity existed to be the investment firm of the future, to thrive in each of our business segments, and to grow our firm by capitalizing on market opportunities. The theme we established then remains true today. Stifel’s growth, both organically and through acquisitions, furthers our goal of building the premier investment bank and full-service investment firm. This is evident in our 11 acquisitions since 2005: Legg Mason Capital Markets; MJSK Private Client Group; Ryan Beck & Co.; First Service Financial Company (renamed Stifel Bank & Trust); Butler Wick; 56 UBS Branches; Thomas Weisel Partners; Stone & Youngberg; Miller Buckfire; and Keefe, Bruyette & Woods. Each merger has been accretive to Stifel and retention remains high. Most recently, we announced the intended acquisition of Knight Capital Group’s U.S. institutional fixed income sales and trading business and the hiring of their European team. The deal is expected to close in the second quarter of 2013. Our opportunity in the Global Wealth Management segment is to recruit established financial advisors. In 2012, we hired 152 advisors, bringing our ranks to more than 2,000. In February 2013, we launched our first national television ads on CNBC and Bloomberg TV. Four ads – geared primarily toward financial advisors – are designed to bolster our recruiting efforts while building and reinforcing the Stifel brand among advisors and investors alike. The ads, which can also be viewed at stifel.com, invite advisors to “Join a firm that values YOUR relationships with your clients. Choose Stifel: We think you’ll like it here.” The overarching branding goal, initiated to coincide with these ads, is to promote Stifel, as opposed to Stifel Financial or Stifel Nicolaus – One Company and One Culture – a powerful combination of the diverse companies and individuals that encompass our brand. 2012 Environment and Milestones 2012 represented Stifel’s 17th consecutive year of record net revenues. This is a significant accomplishment, particularly given past market cycles. The business environment, marked by continued uncertainty in 2012, was further impacted by global growth worries, high unemployment, financial issues in Europe, and the fiscal cliff at the end of the year. Washington gridlock kept investors on the sidelines. Despite these headwinds, the major indices recorded positive gains in 2012, with the Dow Jones up 7%, while the S&P 500 rose 13%, and the NASDAQ increased 16%. The 10-year Treasury closed the year at 1.76%. While these times are challenging, we maintain a contrarian view toward investing in down cycles. By capitalizing on headwinds in the industry, we are able to take advantage of opportunities for long-term growth. Two such opportunities were presented to us in 2012: Keefe, Bruyette & Woods (KBW) and Miller Buckfire. On November 5, 2012, we announced our intent to merge with KBW, a premier brand in specialized financial services. This combination creates a dominant financial institutions force in equity research, equity and fixed income sales and trading, and investment banking. We believe that the financial institutions sector is poised to benefit from improving fundamentals and catalysts, which we will be able to leverage across our Global Wealth Management and Capital Markets platforms. We closed the merger with KBW on February 15, 2013, and are very excited about our combined potential and the ability to gain market share in the financial services sector. In connection with the merger, we welcomed Tom Michaud and Michael Zimmerman to our Board of Directors. Tom Michaud spent the last 25 years at KBW, most recently as CEO, and Michael Zimmerman is currently Vice Chairman of the Continental Grain Company after serving in a variety of senior positions in Salomon Brothers’ investment banking practice. 2 After announcing an initial investment in Miller Buckfire in June of 2011, we acquired 100% of the firm on December 20, 2012. Miller Buckfire is a preeminent franchise in restructuring advisory. As we continue to build our investment banking capabilities, bringing our two firms together enables us to efficiently provide capital markets and investment banking services to clients with special financing needs. 2012 Financial Performance Stifel reported record net revenues of $1.61 billion, a 14% increase from 2011, and record net income of $138.6 million or $2.20 per diluted share. Our record revenues are a reflection of our stable, balanced business model. Our pre-tax income margin of 14% was just shy of our stated goal of 15% across market cycles. The Global Wealth Management segment reported pre-tax operating income of $268.2 million on net revenues of $995.2 million. Within Global Wealth Management, Stifel Bank reported net revenues of $79.9 million, a 38% increase from 2011. The Institutional Group segment generated pre-tax operating income of $96.2 million on net revenues of $618.5 million, a 22% increase from 2011. 2012 was a year of investment at Stifel. During the year, we recruited 152 financial advisors and hired 77 fixed income sales and trading professionals. While our new investments generated revenues of $45.5 million, associated total non-interest expenses of $64.0 million reduced earnings per share by $0.18. This impact was more significant in the first half of the year than the second half. As our investments mature, we expect a resulting contribution to our growth and bottom line. Our stock performance was flat for the year. This compares to the AMEX Securities Broker-Dealer Index, which gained 13% in 2012. On a longer horizon, Stifel remains the top-performing stock among our peers over the past ten years ending December 31, 2012, up an impressive 760%, while our nearest competitor is up 193% and the S&P is up 62%. Our capital position is strong, with $7.0 billion in total assets, $1.5 billion in shareholders’ equity, and book value per share of $27.24 as of December 31, 2012. 2012 Notable Accomplishments Global Wealth Management • Hired 152 financial advisors. • Total client assets increased 13% to $137.9 billion, and fee-based assets increased 13% to $20.8 billion. • Opened 18 new branch offices in California, Connecticut, Delaware, Florida, Idaho, Maryland, Massachusetts, Michigan, Missouri, North Carolina, Ohio, Pennsylvania, Tennessee, and Washington. • Stifel Bank assets increased 60% to $3.65 billion from $2.28 billion in 2011. • Stifel Bank non-performing assets as a percentage of total assets ended the year at 0.06%. Institutional Group • Over 1,300 U.S. companies under coverage, making Stifel the largest provider of U.S. equity research. • Four equity research analysts won awards in The Wall Street Journal’s Best on the Street Survey for 2012, with two Stifel analysts recognized as the #1 stock-pickers in their respective industries. • Stifel’s Equity Research Group ranked #3 in FT/StarMine’s World’s Top Analysts Survey, with a total of 14 individual awards. Additionally, Stifel captured three of the top ten overall spots in the earnings estimate accuracy category out of 4,000 analysts. • Extensive distribution network with a global equity and fixed income sales and trading team. • Served as a lead or co-manager in 170 equity underwritings in 2012 compared with 123 during 2011. • Served as a senior or co-manager on 1,068 tax-exempt issues in 2012 compared to 588 in 2011. • Successfully integrated Stone & Youngberg, capitalizing on their municipal finance and fixed income businesses. • Ranked #2 by par value in national K-12 education senior managed negotiated bond underwritings, with a #1 ranking in Arizona, California, and Michigan K-12 Education. Corporate • Leverage ratio of 3.6x. • Stifel’s market capitalization was $1.76 billion as of December 31, 2012. • We repurchased 0.4 million shares in 2012, or $11.4 million, at an average price of $30.35. The maximum number of shares authorized under our share repurchase program is 4.0 million. • We believe we entered 2012 overcapitalized in terms of equity; therefore, we issued $325 million in senior notes comprised of $175 million principal amount 6.70% due 2022 and $150 million principal amount 5.375% also due 2022. Market Position and Conclusion Stifel is a growth company unburdened by capital constraints. We have adhered to utilizing a low-leverage business model with conservative risk management. We continually seek out ways to drive revenue growth and generate synergies between our Global Wealth Management and Institutional Group segments. Our unique market position, situated between the bulge bracket and boutique firms, gives us the scale and stability to offer a full-service platform without being forced to deleverage, raise common equity, or alter our business model. With the expansion of our financial institutions business, the build-out of our fixed income division, and financial advisor growth, we believe we are well positioned to gain market share and increase shareholder value. With respect to the economic growth, we would simply describe it as tepid. The U.S. economy is in the fourth year of a recovery that has yet to produce a four-quarter growth rate of 3%. Couple this meager economic growth with events such as the Flash Crash and LIBOR manipulation, and the result is shaken investor confidence and risk aversion. This is illustrated by the fact that domestic equity funds experienced net outflows totaling over $500 billion from the beginning of 2008 through 2012. As of the writing of this letter, the 2013 earnings estimate for the S&P 500 is $110.58, resulting in an earnings yield of 7.11%, while the 10-year Treasury is 1.71%. At the same time, all equity mutual funds have seen year-to-date inflows of $67.5 billion. Looking forward, we expect economic growth to gradually improve and equity inflows to remain positive, which supports our view that equities are undervalued relative to the 10-year Treasury. As such, we are optimistic that the industry environment will also improve and that our investments over the last few years will add to shareholder value. Once again, we look forward to 2013 and the opportunities it may present. 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 Board of Directors Stifel Financial Corp. Board of Directors and Officers Ronald J. Kruszewski* Chairman of the Board, President, and Chief Executive Officer 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 Robert E. Grady* Partner and Managing Director Cheyenne Capital Fund *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 Alton F. Irby III* Founding Partner London Bay Capital LLC Robert E. Lefton* President and Chief Executive Officer Psychological Associates, Inc. Thomas B. Michaud* President and Chief Executive Officer Keefe, Bruyette & Woods Thomas P. Mulroy* Senior Vice President Co-Director, Institutional Group Victor Nesi* Senior Vice President Co-Director, 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 Michael J. Zimmerman* Vice Chairman Continental Grain Company 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 Co-Director, Institutional Group 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 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 Barbara – (805) 957-1840* 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* Greeley – (970) 350-7200* Greenwood Village – (720) 963-7900* Pueblo – (719) 546-0470* Connecticut Avon – (860) 677-2132* Hamden – (203) 772-7200* Hartford – (860) 249-2341* Madison – (203) 245-5908* New London – (860) 440-3373* Delaware Greenville – (302) 351-1450 District of Columbia Washington – (202) 756-7760• Florida Boca Raton – (561) 982-2600*• Clearwater – (727) 614-4930* Daytona Beach – (386) 947-6000* Fort Myers – (239) 985-6540* Fort Pierce – (772) 672-5125* Gainesville – (352) 373-2500* Melbourne – (321) 757-7209* Naples – (239) 417-6740* Ocala – (352) 237-2200* Orlando – (407) 897-7063. Palm Beach Gardens – (561) 615-5300* Pensacola – (850) 436-2000* Ponte Vedra Beach – (904) 543-7120* Rosemary Beach – (850) 231-0972. Sarasota – (941) 366-5443* Stuart – (772) 403-8300* Tampa – (813) 639-7500. 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* Deer Creek – (847) 438-2740. Edwardsville – (618) 659-3780* Geneva – (630) 845-7900* Jacksonville – (217) 243-8060* Lake Forest – (847) 615-0677* Mattoon – (217) 235-0353* Orland Park – (708) 390-5900* 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* Branch Locations Kansas Lawrence – (785) 842-7800* Manhattan – (785) 776-1066* Overland Park – (913) 345-4200*• 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* Plymouth – (508) 927-7030* Wellesley – (781) 239-2800* Michigan Ann Arbor – (734) 213-5103* 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* Branch Locations Joplin – (417) 781-6161* Kansas City – (816) 531-7777* Kirkwood – (314) 909-0238* O’Fallon – (636) 695-2650* Rolla – (573) 364-8930* Springfield – (417) 886-2855* St. Joseph – (816) 364-3334* 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*• Hackensack – (201) 881-7950* Marlton – (856) 810-4800* Princeton – (609) 799-1180* Ramsey – (201) 669-3030* Roseland – (973) 533-4000*• Roxbury – (973) 598-8300* Shrewsbury – (732) 720-2030* 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* Medina – (330) 721-2101* 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) 467-2300* Portland – (503) 944-3240• Salem – (503) 315-4993* Pennsylvania Altoona – (814) 944-2065* Beaver – (724) 728-0436* Bethel Park – (412) 854-7500* Bloomsburg – (570) 380-6140* Camp Hill – (717) 730-1100* Center Valley – (610) 782-5400* Conshohocken – (610) 567-1900* Easton – (610) 317-4420* 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* St. Marys – (814) 788-5260* 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* Johnson City – (423) 794-3187* 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 Bellevue – (425) 637-3600* Olympia – (360) 918-7900* 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 Shareholder Information Annual Meeting The 2013 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 12, 2013, 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 2012 2011 High Low High Low $ 39.84 $ 32.02 $ 49.94 $ 40.68 38.65 36.44 35.18 29.33 28.10 28.80 48.91 40.44 34.50 34.97 23.09 23.72 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) 2008 2009 2010 2011 2012 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: $55,502 3 $75,798 — $ 1,907 1,261 $ 84,134 69 $ 138,573 — 15,538 337 — — 110,314 11,278 1,064 28,295 — — $71,380 $75,798 $ 124,760 $113,562 $ 138,573 GAAP Earnings Per Diluted Share Acquisition-related charges Core Earnings Per Diluted Share $ $ 1.32 0.37 1.69 $ $ 1.56 — 1.56 $ $ 0.03 2.13 2.16 $ $ 1.33 0.47 1.80 $ $ 2.20 — 2.20 All stock price and per share amounts presented above reflect the three-for-two stock splits distributed in April 2011. Investment Services Since 1890 Stifel Financial Corp. | www.stifel.com One Financial Plaza | 501 North Broadway | St. Louis, Missouri 63102
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