Stifel Financial Annual Report 2018

FY2018 Annual Report · Stifel Financial

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ANNUAL REPORT 2018

ABOUT STIFEL

Stifel Financial Corp. 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, including its Eaton Partners business division; Keefe,
Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Century Securities Associates, Inc.; and in the United Kingdom and
Europe through Stifel Nicolaus Europe Limited. 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 and Stifel Bank & Trust offer a full range of consumer and commercial banking and
lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer 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

FINANCIAL HIGHLIGHTS

OPERATING RESULTS:1
in thousands, except per share amounts

2014

2015

2016

2017

2018

Total Revenues

$2,249,685

$2,376,993

$2,642,370

$2,996,462

$3,194,957

Net Income Available to Common Shareholders

$176,067

Earnings Per Diluted Share
Non-GAAP Net Income2
Non-GAAP Earnings Per Diluted Share2

$2.31

$205,579

$2.69

$92,336

$1.18

$149,252

$1.90

$77,614

$1.00

$173,496

$384,593

$2.14

$4.73

$185,705

$323,383

$429,442

$2.39

$3.99

$5.28

FINANCIAL POSITION:
in thousands, except per share amounts

Total Assets

Shareholders’ Equity

Book Value Per Share

2014

2015

2016

2017

2018

$9,518,151

$13,326,051

$19,129,356

$21,383,953

$24,519,598

$2,322,038

$2,492,416

$2,738,408

$2,861,576

$3,197,593

$35.00

$37.19

$38.84

$38.26

$43.04

1 The operating results are from continuing operations. The results for SN Canada are classified as discontinued operations for all periods presented.
2 Non-GAAP net income and non-GAAP earnings per diluted common share represent GAAP net income and GAAP earnings per diluted common share adjusted for:
(1) acquisition-related charges other than duplicative expenses; (2) litigation-related expenses; (3) actions taken by the Company in response to the tax legislation
that was enacted in the fourth quarter of 2018 to maximize tax savings; (4) the favorable impact of the adoption of new accounting guidance during 2018 associated
with stock-based compensation; (5) the revaluation of the Company’s deferred tax assets as a result of the enacted tax legislation; and (6) the U.S. tax benefit in 2013
arising out of the Company’s investment in SN Canada. See Reconciliation of GAAP net income to non-GAAP net income on page 16.

TOTAL REVENUES
(In millions)

NON-GAAP NET INCOME2
(In millions)

NON-GAAP EARNINGS
PER DILUTED SHARE2

3,200

2,400

1,600

800

25,000

18,750

12,500

6,250

440

330

220

110

6.00

4.50

3.00

1.50

TOTAL ASSETS
(In millions)

SHAREHOLDERS’ EQUITY
(In millions)

BOOK VALUE PER SHARE

3,200

2,400

1,600

800

44.00

33.00

22.00

11.00

Dear Fellow Shareholders, Clients, and Associates

2018 was another record year for Stifel. We reported record revenue, net income, and earnings per
share. Net revenue, which has increased for the last 23 years, totaled slightly more than $3 billion.
Net income under generally accepted accounting principles (“GAAP”) was $385 million, or $4.73 per
diluted share. On a non-GAAP basis, our net income was $429 million, or $5.28 per diluted share.

Yet 2018 was the worst year for the S&P 500 since 2008 – and the worst for financials since
2011 – as investors acted on concerns about global growth, trade conflicts, and partisan
tensions in Washington. While Stifel’s GAAP and non-GAAP earnings per share increased
121% and 32%, respectively, our share price declined 30%. In my 22-year tenure as CEO,
I have never seen a greater divergence between our financial performance and our stock price.
We viewed this as a significant undervaluation, and therefore as an opportunity to increase
share repurchases, as is discussed further below. As of the writing of this letter, the markets
have rebounded from their December 2018 lows and Stifel’s stock price has improved by
approximately 44%.

We continuously strive to improve client service and invest in our future, and we are also
focused on improving our operational efficiency. Two years ago, we articulated a strategy
to identify cost efficiencies and further integrate our businesses. These steps have
resulted in a meaningful improvement in our non-GAAP performance metrics as
compared to 2016, as our:

• Compensation ratio improved to 58.0% vs. 62.8%;
• Non-compensation expense ratio improved to 22.4% vs. 24.1%;
• Pre-tax margin improved to 19.6% vs. 13.1%; and
• Return on tangible equity improved to 27% vs. 15%.

A clear benefit of our improved financial metrics is the generation of significant
cash flow. We remain focused on maximizing risk-adjusted returns when
deploying our capital, yet as a growth company, we believe that reinvesting
in our business to enhance organic growth is essential. In 2018, these
reinvestments included an increase in the assets on our balance sheet by $3.1
billion and significant investments in people to further expand our revenue
base. Furthermore, we continued to make essential investments in technology
to improve the client experience as well as the efficiency of our associates.

We also deploy capital through an acquisition strategy that has served the
company well over the last 15 years. Acquisitions have made Stifel more
relevant to our clients and expanded our foundation for growth while increasing
shareholder value. In 2018, we completed the acquisitions of Ziegler Wealth
Management and Business Bancshares, Inc. and announced the acquisitions
of First Empire Holding Corp. and MainFirst Holdings AG.

In addition to focusing on organic growth and acquisitions, we utilized the
strength of our balance sheet to return $232 million to shareholders through
dividends, net settlement of restricted stock units, and share repurchases.
Today, there exists a significant debate, primarily political in nature, about
the appropriateness of share repurchases. Bottom line, we view share
repurchases as an important capital tool, yet understand the importance of
buying back stock at a reasonable price. Said another way, share repurchases
should add value to remaining shareholders.

As I discussed earlier in this letter, we believe the significant decline in our
share price did not reflect our financial performance or our outlook for the
future. As such, during the fourth quarter, we repurchased 2.3 million shares
of Stifel at what we believe were very compelling valuations, including some
below book value. For the year, we repurchased and net settled nearly 3.7
million shares and increased our share repurchase authorization to 10 million
shares. Finally, in January 2019, we announced a 25% increase to our dividend
on common shares, our second such increase in the last two years.

RONALD J. KRUSZEWSKI | Chairman of the Board, Chief Executive Officer

Turning to the performance of our two main operating segments, let me begin
with Global Wealth Management, as it represents approximately two-thirds of our
overall revenue. This segment earned record revenue of $2 billion, an increase
of 9% over 2017, and achieved record profitability. Noteworthy is the level of
recurring revenue, defined as asset management fees and net interest income,
both of which posted record totals in 2018.

Our Private Client Group now consists of more than 2,300 financial advisors who
serve clients from nearly 370 offices across the country. We had a strong year
for financial advisor recruiting, opening 11 new Private Client Group offices and
adding 143 financial advisors from a variety of firms. Our positive momentum
has carried over into 2019, as our recruiting pipeline has remained strong and
the quality of advisors visiting our home office has been truly impressive.

In addition to organic growth, our acquisition of Ziegler Wealth Management
brought us 55 advisors with approximately $5 billion in client assets.

As planned, 2018 represented a year of growth in company assets, primarily
interest-earning assets in Stifel Bancorp. We grew our firm-wide assets by 15%,
ending the year with $24.5 billion. In addition, we ended the year with a Tier 1
leverage ratio of 9.3% and a risk-based capital ratio of 18.2%.

As I noted, Stifel Bancorp has been the primary driver of our balance sheet
growth. It ended the year with $17.8 billion in assets, an increase of 19%,
while maintaining a conservative risk profile. In September, we completed
the acquisition of Business Bancshares, Inc. and its wholly owned subsidiary,
The Business Bank of St. Louis, a single-branch bank with approximately
$620 million in assets. This enabled us to increase our lending capabilities,
expand our product offerings to include treasury services and payroll processing,
and increase the FDIC coverage on deposits held at our affiliated banks.
The Business Bank acquisition helped drive a 36% increase in commercial
loans, and total bank loans increased 22% to roughly $8.7 billion.

2018 RESULTS

(in thousands)

TOTAL FIRM
Total Revenues

Non-GAAP Net Income

Non-GAAP EPS

$3,194,957

429,442

5.28

2018

GLOBAL WEALTH MANAGEMENT
Net Revenues

1,990,319

Contribution

AUM

737,003

269,862,000

INSTITUTIONAL
Equity Net Revenues

758,630

Fixed Income Net Revenues

296,865

Net Revenues

Contribution

1,055,495

157,051

INSTITUTIONAL CLIENT SERVICES
Equity

185,960

Fixed Income

Total

INVESTMENT BANKING
Equity

Fixed Income

Total

Capital Raising

Advisory

184,977

370,937

511,140

196,530

707,670

336,188

371,482

33.

32.

18.

(1)

(22)

(5)

(28)

(7)

(14)

(10)

(1)

(8)

(3)

(8)

Overall, Stifel Bancorp’s credit metrics remained solid with a non-performing
asset ratio of 0.14%, an improvement of four basis points from 2017. Our asset
quality metrics compare very favorably to the overall market and reflect our conservative approach.

Percent represents the increase/(decrease) over prior year results.

Looking forward, and considering current market conditions, we anticipate that the growth rate of Stifel Bancorp’s balance sheet will slow in 2019.
Of course, market conditions may change, and we will adjust our strategy accordingly.

Over the year, we continued to invest in our technology platform, as we firmly believe in combining digital and mobile capabilities with trusted
human advice. Recognizing the importance of the advisor-client relationship, we are working on advances aimed to help investors organize and
manage their financial affairs while staying in constant contact with an advisor who is helping deliver a sound, goals-based investment strategy.

• eSignature – Integrated eSignature capabilities now enable our clients to securely initiate almost all common account actions. Going

forward, we plan to build on this improvement to modernize and streamline the account opening process. Likewise, eSignature will allow
clients to access investment capabilities, borrowing, banking, asset management, and other Stifel services.

• Mobile Technology – In 2018, we built and delivered the first of several targeted mobile technologies. We believe that mobile represents the
most significant opportunity to connect clients and advisors in the future. As next-generation network capabilities come to market, this will
only accelerate.

• Wealth Tracker – Our Wealth Tracker app launched in the year and now allows users to securely aggregate assets from multiple sources,

examine them through custom visualization tools, sample our extensive research offerings, and track markets, budgets, spending, and more.
This is a free app available to both existing Stifel clients and the general public – even to those without an existing Stifel account.

• Wealth Navigator – Stifel Wealth Navigator, our new and improved client portal, will launch later this year. Here again, we have made significant
efforts to make sure that the mobile experience of Wealth Navigator delivers the clarity, ease, and convenience that clients have come to expect
from the best apps in the mobile marketplace.

• Enhanced Client Reporting – In 2018, we began the difficult task of completely revising our client reporting capabilities. Through hard work and
detailed focus, we were able to roll out the platform at the end of the year. When complete, this new suite of reporting tools will be available to
every account relationship across the firm, not a limited subset. We are optimistic about the value that this cutting-edge technology will provide
our clients.

With each advancement mentioned above, we aim to help our clients understand their individual situations and see the value of the trusted advice
our advisors bring. We know that one-size-fits-all solutions do not best serve client interests. Technology is helping us do better.

Turning to our Institutional Group, which comprises Institutional Client Services and Investment Banking, revenues for 2018 were $1 billion.

Market conditions were favorable for our Investment Banking business; however, several factors, both secular and cyclical, negatively impacted our
trading revenues. Institutional trading for debt and equity recorded revenue of $371 million, down 10%. Equity brokerage revenues totaled $186
million, a decline of 7%, while fixed income brokerage revenues were $185 million, down 14%.

Recognizing that the operating environment remains challenging, we will continue to adapt our business model in order to provide highly valued
research and trading strategies to our clients while maintaining our expense discipline. In addition, we have implemented an approach to more
tightly align and integrate our sales, trading, and research coverage with our investment banking effort and across our debt and equity businesses.
This has allowed us to successfully introduce new product capabilities, such as 144A equity offerings and leveraged finance debt offerings, which
allow our professionals to provide ever more differentiated advice to our clients.

This integration and alignment was evidenced by our acquisition of First Empire Holding Corp., announced in October and closed in early 2019.
First Empire provides a full range of fixed income products and services to a unique set of clients, primarily credit unions, supplementing Stifel’s
focus on regional banks, insurance companies, pensions, and municipalities. The integration of First Empire’s product and advisory expertise to
credit unions with Stifel’s expertise to depository institutions will enhance the strategies we can offer and implement. In turn, this will help optimize
the performance of our clients’ loan portfolios and mitigate risks to their balance sheets.

Additionally, we continue to selectively invest in equity research, adding senior-level analysts in the applied technology and communications
infrastructure, biopharma, and energy sectors. Our Stifel and Keefe, Bruyette & Woods (KBW) franchises combine to make us the largest provider
of U.S. research. Together, we ranked No. 3 out of 152 firms in the Thomson Reuters Analyst Awards, our twelfth consecutive top 10 finish. Stifel
Nicolaus Europe Limited added to our total, winning five awards in the Thomson Reuters Analyst Awards in Europe and the United Kingdom/Ireland.
Our focus remains on adding value to our clients through high-quality research that is primarily focused on small and mid cap stocks, as more than
two-thirds of our research coverage encompasses companies that have less than $5 billion in market capitalization. These companies typically have
less liquidity and fewer sell-side analysts than large cap stocks. Given the implementation of MiFID II, which both altered the way commissions are
paid by international money managers and reduced the overall revenue pool paid to the sell side, we believe that our focus on helping clients trade
in smaller, less liquid stocks will counter some of the impact of these market changes.

Investment Banking revenues totaled $708 million in 2018 and were nearly equally divided between capital-raising and advisory revenues. Capital-
raising revenue totaled $336 million in 2018, while advisory revenue was $372 million, up 3% from 2017.

On the advisory front, we completed 125 M&A strategic advisory assignments. A noteworthy assignment highlighting how our acquisitions have
made Stifel more relevant to our clients was our work with Caesars Entertainment. We advised Caesars in its successful emergence from bankruptcy,
achieved through a unique spin-off of the company’s assets into a newly formed REIT named VICI, a subsequent acquisition for VICI, and VICI’s
$1.4 billion IPO in January 2018.

I would be remiss if I did not highlight KBW, which posted another exceptional year. In 2018, KBW advised on 11 of the top 20 bank mergers, was
the No. 1 bank IPO lead bookrunner, and advised on the largest mutual to mutual insurance company merger in the past decade. KBW’s specialized
focus on the financial sector and long-standing client relationships helped fuel the second best year for M&A advisory in its illustrious history.

With respect to equity capital raising, we completed 17 book-run IPOs and 46 book-run follow-ons in 2018. Our strength across key sectors, including
healthcare, technology, financials, and energy continued with book-managed transactions for a number of clients, including nLight, Zogenix, Intricon,
First Western Financial, and Northern Oil & Gas.

Record revenue, record net income, record earnings per share. In the accompanying shareholder
letter, Ron highlights Stifel’s financial accomplishments. But more importantly, he highlights our
progress in providing our associates the tools to craft solutions to fit the needs of each client –
whether they be an individual, corporation, or institutional investor. This client-centric approach
permeates the entire Stifel organization, which as Co-Presidents we have the privilege of guiding
and leading every day.

Stifel associates inhabit a workplace that is constantly evolving. That evolution is not driven from
the top down, but rather through their efforts to inform the organization of the needs of their
clients and to suggest approaches to satiate those needs. We are committed to building our
capabilities so we can provide differentiated solutions to address our clients’ challenges and
then leverage that organically through the organization, allowing Stifel to become more relevant
to the entire universe of our client base.

How do we enable our associates to devise that differentiated approach? As Ron states ...
“by building a culture that rewards collaboration, hard work, and empathy.” This collaborative
and accepting environment, which we believe makes Stifel unique among our industry peers,
has allowed us to more effectively integrate and align our efforts across the organization,
transforming our business. It is, and will continue to be, Stifel’s hallmark – the firm “Of Choice”
for our associates, clients, and of course, our shareholders.

VICTOR J. NESI
Co-President

JAMES M. ZEMLYAK
Co-President

Stifel Europe continued its outstanding success, ranking No. 4 by volume of transactions in 2018, up from No. 7 in 2017, and No. 4 by value of
transactions, up from No. 13 in 2017. Critical to this growth has been our ability to operate as a sole bookrunner, such as in the Secure Income REIT
raise of £315 million in March 2018. Additionally, we continue to work across borders and products to craft tailored solutions for clients, as we did in
our £250 million raise for Diversified Gas & Oil. In November, we announced our agreement to combine with MainFirst Holdings AG, an independent
European investment bank serving institutional and corporate clients in European markets. Although currently a contrarian view, we see Europe as
a growth opportunity for our Institutional Group. MainFirst is widely recognized for excellence in equity research, ranking as the No. 1 provider of
country research in both Germany and Switzerland, according to the 2018 Extel Survey. Coupled with our existing strength in the U.K. market, this
merger creates a pan-European platform with deep local expertise throughout the continent’s major markets. In addition, MainFirst carries a full
German banking license, which will enable us to continue offering corporate advisory, brokerage, and investment banking services and clear and
settle secondary equity and fixed income trades post-Brexit.

Stifel’s debt capital raising is anchored by our Public Finance business, which is driven by both geographic and sector diversification. For the fifth
consecutive year, Stifel led the nation in the number of municipal negotiated issues, serving as sole or senior manager for 536 transactions with
a total par value of nearly $10.2 billion. In addition, Stifel ranked No. 1 nationally in several categories, including K-12 school districts, affordable
housing, and tax increment financing. In 2018, more than one in every 10 negotiated transactions were priced on a Stifel desk.

As we look to grow our investment banking business, we believe that Stifel is uniquely positioned among investment banks to execute our strategy
of delivering a full-service offering to our target client base. To that end, we have introduced a wide range of solutions over the past three years to
further assist our clients, including special purpose acquisition company
(SPAC) advisory and capital raising, 144A capital raising, and leveraged
finance capabilities. While each initiative is relatively new, these new
capabilities have already had notable success, generating approximately
$40 million in revenue. We completed SPACs for Hennessy Capital Acquisition
Corp., M-III Partners LP, Industrea Acquisition Corp., and Legacy Acquisition
Corp. In addition, we completed 144A offerings for Energy Capital Partners,
Roundpoint Mortgage, and CuriosityStream. Lastly, our launch of leveraged
finance in 2018 has yielded early successes, including our first committed and
distributed transaction. The success of these products across a number of
industry sectors, including financial institutions, industrials, and technology,
is a realization of our strategy to combine broad product capabilities with
the strength and breadth of our industry vertical expertise. We believe our
investments in these products will further diversify our investment banking
revenue and provide increased growth potential for the Institutional Group.

RESPOND TO THE EVER-CHANGING

TALENT AND DEDICATION OF OUR

MODEL AND CONSERVATIVE RISK

PROFILE, CATALYZED BY THE

“OUR BALANCED BUSINESS

PEOPLE, WILL ALLOW US TO

BUSINESS ENVIRONMENT.”

As I reflect on 2018, I am resolute in my belief that continuous improvement in our financial performance will create additional shareholder value.
Over the past two decades, we have driven those improvements by building a culture that rewards collaboration, hard work, and empathy. Our
company, a meritocracy that embraces entrepreneurship, adheres to the Golden Rule of treating others as one would wish to be treated. Stifel
associates, in turn, provide creative solutions for our clients. This is the core principle of Stifel’s “Of Choice” strategy, which we implemented in 1997
and continue to adhere to today. It is noteworthy that, since the beginning of 1997, our revenue has multiplied almost 30 times, driven by the growth
in our associates from approximately 800 to more than 7,500 today.

We’re committed to building a more diverse workforce, and nowhere is that more evident than in the growth of our Women’s Initiative Network –
or WIN. WIN was born organically when a small group of Stifel’s top female advisors began working together to address the unique challenges that
they and other women in our industry face by sharing best practices and encouraging success. It now includes every woman at Stifel – not just
advisors. By providing networking and mentoring opportunities for women at every stage of their careers at the firm, WIN empowers our female
associates, encouraging them and the wider organization to recognize their value and reach their potential. Our commitment to recruiting and
retaining strong female talent is particularly evident in our Private Client Group, where in 2018 we recruited a record number of female advisors and
promoted more than 160 female assistants within our branch system. And, we were pleased that, for the fourth year in a row, KBW was recognized
by Institutional Investor for having the most gender diversity among its senior publishing equity analysts. Under the leadership of Crystal Schlegl
and Carol DeNatale, WIN is making tremendous strides. More broadly, it provides a framework for future initiatives to increase diversity at Stifel by
enabling everyone in the company to thrive as an entrepreneur.

As I look forward to the next quarter, next year, and next decade for Stifel, I acknowledge that it is difficult to forecast the economic and market
forces we will face. We will surely navigate political and regulatory developments along the way. Nevertheless, our balanced business model and
conservative risk profile, catalyzed by the talent and dedication of our people, will allow us to respond to the ever-changing business environment.
I’m highly optimistic that we will continue to grow and create value for our clients and shareholders in the future.

As always, we sincerely thank our shareholders and clients for their support, as well as our more than 7,500 associates for their commitment
to excellence.

RONALD J. KRUSZEWSKI
Chairman of the Board and Chief Executive Officer

WEALTH MANAGEMENT

PRIVATE CLIENT GROUP

AN INDUSTRY LEADER WITH
A CLIENT-FIRST,
ADVISOR-CENTRIC CULTURE

Stifel has grown to become one of the nation’s largest wealth management firms, ranking No. 7 in terms of number
of financial advisors.

At the heart of our success is a culture built on respect. Respect for our clients and the financial advisors who serve
them. To that end, we foster an entrepreneurial environment for our advisors, empowering them to do what’s best
for their clients. We also provide our advisors with the tools and support to deliver outstanding service and address
even the most complex client needs.

198

Financial Advisors
Joined Stifel
in 2018

369

Private Client
Group Branches

$270

Billion
in Assets Under
Management

RANK

FIRM

ADVISORS

7th
LARGEST

FULL-SERVICE
INVESTMENT FIRM
IN THE NATION IN
NUMBER OF
FINANCIAL ADVISORS

Bank of America Merrill Lynch

Morgan Stanley Wealth Management

Wells Fargo Advisors

Raymond James

UBS

JPMorgan

Stifel

Oppenheimer & Co.

16,737

15,694

13,968

7,815

6,850

2,865

2,301

1,073

Source: SIFMA and publicly available information for U.S. brokerage networks. Includes investment banks only.

STIFEL BANK

STIFEL TRUST

$17.8 Billion

in Assets

Delivering a full range of banking
and lending services, including mortgages,
securities-based lending,
and private banking

$3.6 Billion

in Assets Under Administration

Integrated trust services, including charitable
and special needs trusts, corporate
successor trustee appointments,
and Delaware trust services

ASSET MANAGEMENT
Providing investment management and services to individuals and institutions and over a breadth of asset classes

STIFEL ASSET MANAGEMENT AFFILIATES

A Stifel Company

TOTAL ASSETS UNDER MANAGEMENT*

$22.6 Billion

in Assets Under Management

$7.6 Billion

in Assets Under Advisement

CLIENT BASE**

INSTITUTIONAL

HIGH NET WORTH/FAMILY OFFICE

WRAP & POOLED

MUTUAL FUND/SUBADVISORY

MODEL PROGRAMS

* Total assets under management, excluding private equity funds, discussed herein that are direct or indirect subsidiaries of Stifel.
** As a percentage of assets under management and assets under advisement.

INVESTMENT BANKING

SINCE 2010, IN THE MIDDLE MARKET,
STIFEL INVESTMENT BANKING IS …

No. 1

in Total Number of Managed
Equity Deals Under $1 Billion1

No. 2

in Total Number of Bookrun
Equity Deals Under $1 Billion1

No. 1

in Total Number of Preferred
& Baby Bonds Under $200 Million2

No. 1

in Total Number of M&A
Deals Under $1 Billion3

Stifel is the industry’s preeminent middle-market
investment bank. Stifel advises on mergers and
acquisitions and raising public and private debt
and equity through our corporate clients as well
as through our dedicated financial sponsors
and venture capital effort, maintaining regular
dialogue and transaction flow with corporations
and private equity firms focused on Stifel’s core
industry groups.

We provide strategic advisory services to clients
in the United States through Stifel, Nicolaus &
Company, Incorporated and its Eaton Partners
division; Keefe, Bruyette & Woods, Inc.; and Miller
Buckfire & Co., LLC; and in the United Kingdom
and Europe through Stifel Nicolaus Europe
Limited.

The combination of a full-service product offering
and the deep domain expertise of our more than
400 bankers empowers us to provide solutions
for our clients’ evolving needs.

OUR CAPABILITIES INCLUDE:

EQUITY CAPITAL MARKETS

DEBT CAPITAL MARKETS

Investment Grade

Leveraged Finance

Private Placements

ADVISORY

M&A

Activism

Initial Public Offerings

Follow-Ons/Blocks/Buybacks

Restructuring

144A/Private Placements

Convertible Notes/Preferreds

SPACs

DEEP DOMAIN EXPERTISE

Consumer & Retail

Energy & Natural Resources

Diversified Industrials

Financial Institutions

Diversified Services

Gaming, Lodging & Leisure

Healthcare

Real Estate

Technology

Source: Dealogic
1 Rank-eligible SEC-registered IPOs and follow-on offerings
2 Excludes closed-end funds and trust preferreds
3 M&A Analytics

KEEFE, BRUYETTE & WOODS (KBW)
A full-service boutique investment bank and broker-dealer specializing in the financial services sector

Advised on

11 of the Top 20

bank mergers in 20181

Ranked
No. 1

bank IPO lead bookrunner2

Advised on the

largest

mutual to mutual insurance company
merger in the past decade3

Achieved
second best

total M&A revenues
in its 56-year history

MILLER BUCKFIRE
A leading investment bank specializing in corporate restructuring and recapitalization

TURNAROUND
ATLAS AWARDS
OF THE YEAR

– Shipping & Services
Restructuring
Ultrapetrol
– Chapter 11
Restructuring
Optima Specialty Steel

THE M&A
ADVISOR
DEALS OF THE YEAR
– Chapter 11
Reorganization
Caesars Entertainment ($5b+)
– Restructuring
Aéropostale ($250m+)
– Restructuring
Adeptus Health
($100m-$500m)

EATON PARTNERS
One of the world’s largest fund placement agents and advisory providers

Placed or arranged more than

$100 Billion

of commitments
since 1983

Received

1,600

commitments
for 80 alternative investment
funds since 2008

Named Placement Agent and Secondaries

Advisor of the Year

in Asia by Private Equity International

1 Source: S&P Global Market Intelligence
2 Source: Dealogic
3 Source: S&P Global Market Intelligence

INSTITUTIONAL SERVICES

EQUITY RESEARCH

Stifel’s breadth and quality of equity research are unparalleled. We lead the industry with the largest equity research platform
in the U.S. and have the twelfth largest global platform. The quality of our research has been consistently recognized, with
12 consecutive top 10 finishes in the Thomson Reuters Analyst Awards, including No. 1 rankings in 2016 and 2017.

Our unwavering focus is to help our clients make the best investment decisions possible. At the heart of our research is our
analysts, who average more than two decades of experience – many of whom have hands-on experience in the industries they
cover. This continuity and experience enable proprietary and differentiated insights that drive better research and better results
for our clients and advisors.

Largest

U.S. equity
research platform

103

analysts across
12 sectors

Top 10

provider of
U.S. equity coverage in:

∙ Consumer & Retail
∙ Diversified Industrials
∙ Financial Services
∙ Real Estate
∙ Technology
∙ Transportation

STIFEL’S
CONSISTENT
PERFORMANCE
HAS PRODUCED

TWELVE
CONSECUTIVE
TOP TEN
FINISHES

IN THE
THOMSON REUTERS
ANALYST AWARDS, WITH

No. 1

RANKINGS IN
2016 AND 2017
AND

Top 3

RANKINGS IN
2010, 2011, 2012,
2013, 2014, AND 2018

No. 3

out of 152 firms in the
2018 Thomson Reuters
Analyst Awards

■ 1,620 global stocks
under coverage

■ Third largest provider
of global small cap
coverage

■ Largest global
provider of
financials coverage

■ 12th largest
provider of
global coverage

Includes firms acquired by Stifel. See www.stifel.com/research for more information on the Thomson Reuters Analyst Awards.

7.3
BILLION
SHARES TRADED
IN 2018

WORLDWIDE
PRESENCE
LONDON, GENEVA,
ZURICH, AND MADRID

$500
BILLION
FIXED INCOME VOLUME
IN 2018

INSTITUTIONAL SALES AND TRADING

EQUITIES

■ Third largest equity trading platform in
the U.S. outside of the bulge bracket

■ Traded more than 7.3 billion shares
in 2018 (Stifel and KBW combined)

■ Relationships with more than 3,500

institutional accounts globally

■ Active daily market-maker in more

than 4,000 stocks

■ Major liquidity provider to largest equity

money management complexes

■ Multi-execution venues: high-touch,

algorithms, program trading, and direct

market access

■ Dedicated convertible sales, trading,

and research desk

FIXED INCOME

■ 85 traders with annual client trade
volume approaching $500 billion

■ 45-person Fixed Income Research

and Strategy Group

■ More than 220 fixed income

institutional sales professionals
covering more than 8,500 accounts

■ 40+ institutional fixed income offices

nationwide

■ International offices in London, Geneva,

Zurich, and Madrid

GREENWICH ASSOCIATES 2018 FIXED INCOME STUDY RESULTS

MOST HELPFUL ANALYSTS IN
INVESTMENT-GRADE CREDIT

Second consecutive year as
the only mid-tier firm listed
among the bulge brackets

INVESTMENT GRADE

• No. 1 in its peer
group for Trading

• No. 1 in its peer group

for Quality of Service and
Forward Momentum

HIGH-YIELD SALES,
TRADING, AND RESEARCH

• No. 1 among its peers year
over year in Market Share,
Relationship Quality, and
Forward Momentum

• Ranked a top-3 research
provider among its peers

Greenwich Associates 2018 U.S. Fixed Income Study
Peer Group: U.S. Bank, MizuhoSec, Baird, Susquehanna, MUFG, Cantor, Seaport, Pierpont, Nomura, SG, OppCo, Guggenheim, Imperial

PUBLIC FINANCE

TOP-RANKED PUBLIC
FINANCE PLATFORM
■ No. 1-ranked senior manager
of negotiated municipal bond
issues

■ Funding capital projects and
supporting governmental and
not-for-profit clients

BROAD GEOGRAPHIC AND
SECTOR COVERAGE
■ 139 bankers located in 24 offices

in 19 states

■ Broad diversity of experiences and
depth of resources to best serve
our clients

■ Dedicated quantitative resources
and sector groups

STIFEL’S NATIONAL
SCHOLARSHIP
COMPETITION AWARDS

$2,000 scholarships to 50 high
school seniors who compose essays
reflecting on their challenges and
accomplishments.

Negotiated New Issues