Stifel Financial Annual Report 2020

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FY2020 Annual Report · Stifel Financial

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O N E H U N D R E D T H I R T Y Y E A R S

Stifel Financial Corp. | www.stifel.com

One Financial Plaza | 501 North Broadway | St. Louis, Missouri 63102

2020 A N N UA L R E PORT

A B O U T S T I F E L

Put simply, Stifel is a growth company.

From our founding in 1890 through the late 1990s,
Stifel was primarily a Midwestern brokerage firm
providing investment advice to individuals. Since
the late 1990s, through strategic hiring and a series
of acquisitions, Stifel has transformed itself to where
it is today, a diversified wealth management and
investment banking firm, operating through a number
of brands, subsidiaries, and broker-dealers – Stifel,
Nicolaus & Company, Incorporated, Stifel Bank & Trust,
KBW, Miller Buckfire, Eaton Partners, Stifel Nicolaus
Canada Inc., and Stifel Nicolaus Europe Limited, to
name a few. Stifel has grown, and is built, around the
strength and commitment of an increasingly diverse
group of like-minded entrepreneurial professionals.

S T A T E M E N T O F C O M M I T M E N T

TO OUR ASSOCI ATES:
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 your communities, we seek to be your 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 shareholder value
as your Investment of Choice.

Together we now serve a broad group of clients –
individuals, institutions, municipalities, and
corporations – providing a wide array of services,
ranging from investment advice, securities brokerage,
lending and trust services, debt and equity capital
raising, strategic advice, and restructuring, across
multiple geographies.

Although we operate under different Stifel brands,
we collaborate across business units, functions, and
geographies to deliver differentiated capabilities to
our clients and guidance to our associates. We are
connected through a common infrastructure and, most
importantly, a common principle that has guided Stifel
throughout its history – “Safeguarding the money
of others as if it were your own.” As our business
has grown and evolved, this enduring principle has
remained constant.

INVESTMENT
OF CHOICE

OF
CHOICE

ADVISOR
OF CHOICE

FIRM
OF CHOICE

F I N A N C I A L H I G H L I G H T S

OPERATING RESULTS:
in thousands, except per share amounts

2016

2017

2018

2019

2020

Total Revenues

$2,642,370

$2,996,462

$3,194,957

$3,514,961

$3,817,839

Net Income Available to Common Shareholders
Earnings Per Diluted Share1
Non-GAAP Net Income2
Non-GAAP Earnings Per Diluted Share1,2

$77,614

$0.67

$173,496

$384,593

$431,077

$476,211

$1.43

$3.15

$3.66

$4.16

$185,705

$323,383

$429,442

$479,636

$522,847

$1.59

$2.66

$3.52

$4.07

$4.56

FINANCIAL POSITION:
in thousands, except per share amounts

Total Assets

Shareholders’ Equity
Book Value Per Share1

201 6

201 7

2018

2019

2020

$19,129,356

$21,383,953

$24,519,598

$24,610,225

$2,738,408

$2,861,576

$3,167,593

$3,614,791

$25.89

$25.51

$28.41

$32.24

$26,604,254

$4,238,766

$35.91

1 Per share information adjusted for December 2020 three-for-two stock split.
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
2017 associated with stock-based compensation; and (5) the revaluation of the Company’s deferred tax assets as a result of the enacted tax legislation. See
Reconciliation of GAAP net income to non-GAAP net income on page 22.

TOTAL REVENUES
(In millions)

NON-GAAP NET INCOME 2
(In millions)

NON-GAAP EARNINGS
PER DILUTED SHARE 1,2

1,000

2,000

3,000

4,000

135

270

405

540

1.25

2.50

3.75

5.00

T O T A L A S S E T S
(In millions)

SHAREHOLDERS’ EQUIT Y
(In millions)

BOOK VALUE PER SHARE 1

6,750

13,500

20,250

27,000

1,075

2,150

3,225

4,300

9.00

18.00

27.00

36.00

S H A R E H O L D E R L E T T E R

Through the prism of Stifel, this letter should be an easy and
celebratory recounting of the year. 2020 marked a milestone,
as Stifel celebrated its 130th year, a remarkable achievement
for any company, yet especially impressive for a financial
services company. I could write pages describing our 2020
achievements, but will summarize as follows:

• Record revenue of $3.8 billion, up 12%, and representing
Stifel’s 25th consecutive year of record net revenue.

• Record non-GAAP net income of $523 million, or
$4.56 per diluted common share.

• Return on tangible equity of 25%.

• Stifel stock price closed at $50.46, up 25%.

In 2020 more than ever, our success depended on the
diversification of our business model and the talent of our
more than 8,500 associates. We successfully integrated the
six acquisitions from 2019, invested in technology, increased
client access to investment opportunities, improved our
service capabilities, and built upon our recruiting success.
Most impressively, in a matter of days at the beginning of
the pandemic, over 90% of our associates were seamlessly
transferred to remote access, allowing uninterrupted service
to Stifel clients. This transition, which impacted eight global
trading venues, is a demonstration of our flexibility as an
organization and culture of teamwork.

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

In my nearly 25 years as CEO of Stifel, this may be my most difficult shareholder letter because, for many, 2020 was a
tumultuous and difficult year. While the year will be forever etched in history as the year of the pandemic, there is no simple
way to summarize or condense it. The story of 2020 is not a simple one, and it is not just about COVID-19. The year also
witnessed social unrest, the wildfires in California, a heightened awareness for environmental, social, and governance issues
(ESG), and an election that did more to divide than unite our great country.

Stifel’s record results set against this backdrop of adversity, uncertainty, and unrest
is what makes this letter so hard to write. As individuals, we have all been affected
by the events of this year. Alongside the rest of the nation, we have all suffered
loss, we have all witnessed the struggles of our local communities and businesses,
and we have all opened our eyes anew to persistent issues of social justice. Yet as
a firm, Stifel has been resilient, and in many ways we have thrived. I acknowledge
that disparity, and I recognize that part of the explanation is structural. Demand for
our services, taken collectively, simply did not decline during the pandemic the way
it did for many other businesses. Nonetheless, I believe this good fortune is only a
small part of the picture. Our resilience is primarily drawn from our culture, from the
independence and entrepreneurship of all our associates. Without their spirit, we
would have been unable to navigate the uncertainty of this year.

2020 FINANCIAL PERFORMANCE

“

Our resilience is primarily
drawn from our culture,
from the independence
and entrepreneurship of
all our associates. Without
their spirit, we would have
been unable to navigate the
uncertainty of this year.

”

2020 was a volatile year for equity markets. In March, as the impact of the pandemic began to crystallize, the S&P 500 index
declined 31% as measured from the beginning of the year. Unprecedented fiscal and monetary stimulus proved an effective
antidote to market concerns, providing a catalyst for the S&P 500 to recoup its losses by August and finish the year up
approximately 16%.

Stifel stock followed a similar trajectory for the year. During the same month of March, Stifel stock hit an annual low of $20.75,
as adjusted for the December 2020 three-for-two stock split, which was down 49% from the beginning of 2020. It then
experienced a 143% recovery – outpacing both the broader market and our peers, as identified in our proxy. At year-end, Stifel
stock stood at $50.46, an increase of 25% for the year. As we prepare this annual letter in March 2021, our stock traded as high
as $68.94, which was up 37% from year-end, reflecting both the improved economic outlook and growing market recognition of
our relative valuation.

2020 SF PERFORMANCE VS. PEERS

SF Common Stock

S&P 500 Index

Peer Group

25%

16%
15%

30%

20%

10%

-10%

-20%

-30%

-40%

Dec. 19

Mar. 20

Jun. 20

Sep. 20

Dec. 20

Looking back, if I had predicted in March 2020 that Stifel would have a record year, it would have been hard to believe.
The pandemic was worsening, and its economic effects were buffeting our net interest and advisory businesses – two of our
expected growth drivers. However, Stifel reacted quickly to the outbreak and its market impact, generating record results in
our trading, capital-raising, and mortgage origination businesses that more than offset the declines elsewhere. As a result,
it was a record year for the firm and for both of our primary operating segments. Global Wealth Management, which accounted
for approximately 58% of our overall revenue, achieved record revenue of $2.2 billion, an increase of 3%. Our Institutional
business, reflecting the investment of prior years, achieved record profitability and revenue, with revenues increasing 30% to
$1.6 billion. Across the firm, our response to the challenges of 2020 showcased the strength and diversity of our business
model and of our associates.

Our co-presidents, Victor Nesi and Jim Zemlyak, provide a more detailed financial assessment of 2020 in their “Year in Review”
later in this report.

OUR COMMITMENT TO ENVIRONMENTAL, SOCIAL, AND GOVERNANCE PROGRESS

In 2020, we continued to make meaningful progress on ESG issues, important
pillars that affect everyone, not only in business, but in everyday life. As we
celebrate our 130th anniversary, a testament to sustainability, we underscore
our responsibility to provide a diverse and welcoming environment for our
associates. We also recognize our duty to contribute to the sustainable
economic development of the communities in which we operate and society
as a whole. At Stifel, we are committed to doing our part to address the many
challenges of ESG. Transparency is an important factor, and we are examining
approaches to expand our disclosures to better meet recognized frameworks
such as those of the Sustainable Accounting Standards Board and the Task
Force on Climate-Related Financial Disclosures. Also, we believe that we need to
both act and increase transparency on issues such as diversity and inclusion,
ethics and integrity, risk management, and sustainable finance. I believe that
the incorporation of ESG into our business philosophy and policies is not only
good for our business but, more importantly, the right thing to do.

“

As we celebrate our 130th
anniversary, a testament to
sustainability, we underscore
our responsibility to provide
a diverse and welcoming
environment for our associates.
We also recognize our duty to
contribute to the sustainable
economic development of the
communities in which we operate
and society as a whole.

”

I encourage our shareholders to find out more about our commitments to ESG by reading our 2021 proxy and the information
that follows within this annual report.

S H A R E H O L D E R L E T T E R

MOVING FORWARD, BACK TO THE OFF ICE

One of the few silver linings of the pandemic is that it spurred us to adopt new tools and technologies for the workplace.
I am impressed with the determination shown by our associates this year, using all their resources – and quickly adopting
new ones – to overcome the myriad obstacles to doing business in the face of COVID-19. That we were able to service clients
and manage volatile markets, even with most of our associates working remotely, underscores the dedication of our people,
the comprehensiveness of our business continuity plans, and the flexibility of our technology platform. To the people of Stifel,
I say thank you.

But now, even after the demonstrated success of remote work, we must plan for life after COVID-19. There is no doubt in
my mind about the importance of physically working together. The benefits are clear – in training, collaborating, innovating,
networking, and more. It is simply the best way to continue to build on our culture. As I write this letter, our country is in the
process of vaccination and I can see life returning to some normalcy, although not yet to completely pre-pandemic conditions.
For Stifel, this will include a return to our offices. Rest assured, I am committed to ensuring that this occurs in a safe and
fair manner.

GOVERNMENT SPENDING AND THE RISK OF INFLATION

I would be remiss if I didn’t discuss the impact of fiscal and monetary policy. In the short term, the CARES Act, combined
with the additional stimulus in January, the American Rescue Plan Act of 2021, and the Biden administration’s proposed
infrastructure bill, together total nearly $6.5 trillion. That is approximately one-third of U.S. GDP. This stimulus, which constitutes
war-level spending, is nine times larger than the Obama-era American Recovery and Reinvestment Act of 2009. Coupled with
very accommodative monetary policy, this level of government spending has, in my opinion, more than offset the negative drag
on our economy resulting from COVID-19.

So, upon reflection, it should be little surprise that the markets, and many asset classes, have surged in value. On the other
side of the ledger, credit spreads are historically compressed due to accommodative policy. Looking toward the back half of
2021, assuming effective vaccination, there is a high probability of excess demand as people use their savings and stimulus
to consume. Combined with renewed business investment, this excess may lead to upward price pressures.

So what is there to worry about? In my experience, when I am told that certain risks are low and can be managed, those are
the risks that have the potential to be most disruptive if the consensus is proven wrong. Today, and frankly for the last decade,
markets seem convinced that inflation poses little risk, and that we have sufficient tools to combat increasing inflation
expectations when they arise. Without doubt, the Fed can manage short-term rates and adjust quantitative easing, and it has
publicly stated its intention to keep rates low while allowing inflation to run above its stated goal of 2%. However, longer-term
Treasury yields will adjust independently and have greater effect on the equity markets, especially on high-growth stocks. As
seen on the Bloomberg screen blinking before me, expectations right now indicate sharper rate increases, evidenced in the
yields on inflation-protected Treasuries, often referred to as real yields. Therefore, as is always the case, be cognizant of longer-
term yields as they relate to equities.

THE SOCIAL SIDE OF INVESTING

As markets evolve, some things never change. As an example, take the
strange saga of GameStop (“GME”), which seems to represent one of those
grand, confounding collisions of technology and culture. With the very idea
of a “meme stock,” the dwellers of Reddit’s r/wallstreetbets forum have shown
us the possibility of a strange new mingling of social media and financial
markets. Meanwhile, with “free” online trading apps in hand, anyone can join
the speculation as easily as playing fantasy football. The optimist in me wants
to see these trends mature, to see them live up to the promise of democratizing
investing while increasing general financial literacy. The realist in me fears that
we will see little more than the occasional speculative flare-up – fueled by the
savings of those who can afford it least. To me, the most important thing to
remind people is not to get caught up in the fear of missing out. Despite the
new technologies, apps, and platforms involved, the core story of GME is a
very old one, and the ending never changes.

“

The optimist in me wants to
see these trends mature, to see
them live up to the promise of
democratizing investing while
increasing general financial
literacy. The realist in me
fears that we will see little
more than the occasional
speculative flare-up – fueled
by the savings of those
who can afford it least.

”

THE CURRENCY OF CRYPTO

As speculative activity and freely available liquidity have surged, cryptocurrencies such as Bitcoin have also sharply
increased in price. Speculative swings aside, their utility as a currency and an investment vehicle varies around the world.
Some countries, including China and India, place strict restrictions on their use, while others, like the United States, view each
cryptocurrency transaction – whether for goods, services, or in exchange for national currency – as a taxable event. At the
same time, Bitcoin mining consumes an ever-larger proportion of global electricity, with one recent report stating that its
electricity consumption equals that of Pakistan, which has a population of 216 million. At that level of inefficiency, it is unclear
whether cryptocurrencies are suitable for ESG investment goals. Still, cryptocurrencies and especially blockchains are a
genuine financial innovation. They allow decentralized, distributed entities to come to consensus about transactions and
ownership in a way that was not possible before. It is not their novelty that is in question, but the scope of their usefulness,
and their general applicability as a currency and an investment. In the meantime, while they are so rapidly evolving and
so fiercely competing with one another, their volatility must limit their portfolio suitability.

Whether we are talking about the next Amazon, the trade-offs of crypto, or the latest scheme on social media, investors today
face an astounding menu of investment opportunities – and just as many potential pitfalls. In our business, we must decide
how we will use technology to help people manage it all. First and foremost, I believe we have a responsibility not to use
technology to inflame exuberance about new ideas. However glad we are to see a new generation’s evolving perspective on
investing, our goal is not to make it easier for them to pile into and rush out of speculative meme stocks. Rather, technology
can help people get organized, increase their access to advice and research, and guide them in evaluating an ever-growing
panoply of opportunity. At Stifel, we are investing in technology that helps people make sound decisions and lay stable
foundations for the future, which means knowing when to say “yes” to a new idea – and more importantly, when to say “no.”

130 YEARS AND COUNTING

In conclusion, as I began, I want to emphasize the
importance of our people and culture. When we look
back on the trial that was 2020, our success will forever
be a testament to the resiliency of our culture – the same
culture of adaptability and independence that has seen us
through the other great hardships of our 130-year history.
Through the influenza pandemic of 1918, two world wars,
the Great Depression, the Great Recession, and more, we
have continued to be successful not because we stand
apart, nor because we are somehow immune to the
struggles of the nation as a whole. We are successful
because we can change – and change without
compromising our core values of independence and
entrepreneurship. In fact, those values demand that
we be always changing, always adapting, and always
evolving. That is why each of our associates has the power to think independently, to raise issues, and to challenge the
wisdom and folly of the status quo. This year has been a test of our ability to use that power not only to respond to crisis, but
also to look critically at our own biases and inequities. Our success thus far is nothing more than a call to continue this work,
alongside the rest of the nation, into the next year.

From our humble beginnings in 1890
to where we are today

Finally, I would like to thank Jim Oates, who has informed me of his intention to retire, for his
nearly three decades of service as a Stifel Director. Jim was instrumental in my decision to join
Stifel 25 years ago and has been a reliably fair, thoughtful, and, at times, appropriately critical
voice. Jim has helped guide Stifel’s incredible growth and has also been a partner and a mentor.
I, and our shareholders, will miss his wisdom.

As always, we sincerely thank our shareholders and clients for their support, as well as our more
than 8,500 associates for their commitment to excellence.

James M. Oates
Stifel Director Since 1996

RONALD J. KRUSZEWSKI
Chairman of the Board and Chief Executive Officer
March 2021

Y E A R I N R E V I E W

In 2020, Stifel reported:

• Record net revenues of $3.8 billion, increased 12.4%
compared with 2019.

• Record net revenues in Global Wealth Management.

• Record net revenues and pre-tax operating income

in Institutional Group.

• Record net income available to common shareholders
of $476.2 million, or $4.16 per diluted common share.

• Record non-GAAP net income available to common
shareholders of $522.8 million, or $4.56 per diluted
common share.

For the year ended December 31, 2020, the Company reported
net income available to common shareholders of $476.2 million,
or $4.16 per diluted common share, on record net revenues of
$3.8 billion, compared with net income available to common
shareholders of $431.1 million, or $3.66* per diluted common
share, on net revenues of $3.3 billion for the comparable in 2019.

The Company reported non-GAAP net income available to
common shareholders of $522.8 million, or $4.56 per diluted
common share. The Company’s reported GAAP net income for
the year ended December 31, 2020, was primarily impacted by
merger-related expenses. Details are discussed below and in
the “Reconciliation of GAAP Net Income to Non-GAAP Net
Income” section.

2020 RESULTS
(in thousands, except per share amounts)

2020
2020

TOTAL F IRM

Total Revenues

Non-GAAP Net Income
Non-GAAP EPS

$3,817,839

522,847
4.56

GLOB AL WEALTH MANAGE MENT

Net Revenues

Contribution

AUM

INST I TUTION AL GROUP

Equity Net Revenues

Fixed Income Net Revenues

Net Revenues
Contribution

2,190,826

725,884

357,429,000

930,982

652,165

1,583,1 47
325,285

INSTITUTIONAL BROKERAGE

Equity

Fixed Income

Total

IN VESTMENT BANKING

Equity

Fixed Income

Total

256,793
404,789

661 ,582

705,261

247,047

952,308

..
%

9.
9.
12.

(8)

17.

30
85

54
58
57

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

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

Advisory

428,1 47

(4)

Capital Raising

524,161

• Compensation ratio improved to 59.9% vs. 62.8%;

• Non-compensation expense ratio improved to 21.1% vs. 24.1%;

• Pre-tax margin improved to 19.0% vs. 13.1%; and

• Return on tangible equity improved to 24.7% 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 investing in our business to
enhance our relevance to our clients is essential. In 2020, these investments included the significant hiring of talented
people to further expand our revenue base as we fully integrated our six acquisitions from 2019. Furthermore, we continued
to make essential investments in technology to improve the client experience as well as the efficiency of our associates.

In addition to focusing on strategic hiring and investments in technology, we utilized the strength of our balance sheet to
return approximately $185 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. 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. Of course, we
understand the policy discussion restricting share repurchases if a company needs government assistance.

Both of our operating segments had outstanding years. Global Wealth Management achieved record revenue of $2.2 billion,
an increase of 3% over 2019. Our Institutional business achieved record revenue of $1.6 billion, up 30% from 2019.

GLOBAL WEALTH MANAGEMENT

Within Global Wealth Management, our Private Client Group now consists of nearly 2,300 financial advisors who serve clients
from 392 offices across the country. We had a strong year for financial advisor recruiting, opening 16 new Private Client Group
offices and adding 131 financial advisors from a variety of firms. The success of this group emanates from the entrepreneurial
character of each of our financial advisors. As always, our goal is to support them with the tools and resources they need to do
what they do best: build strong relationships with clients to better define and meet their financial goals.

We achieved record results in Global Wealth Management despite the fact that our net interest income and sweep fee income
declined by approximately $96 million. Excluding this impact, our full-year wealth management revenue increased 9%, driven
by strong growth in our brokerage and asset management revenues, both which reflect strong recruiting and markets.

Our Global Wealth Management business continues to benefit from growth and stability of revenue. As of the end of 2020, we
managed approximately $357 billion in client assets, up 9% from 2019. Our assets under administration and fee-based assets
were impacted by the sale of Ziegler Capital Management. Excluding the Ziegler sale, our fee-based assets increased 22%.

We continue to grow our technology and digital offerings to create a
more efficient and personalized experience for clients and advisors.
We’ve ramped up efforts to provide our financial advisors with the most
cutting-edge digital marketing capabilities in the marketplace, using
technology to support our advice-based model. We now have a suite
of offerings that enable our advisors to better communicate with their
clients as well as prospects. Stifel Wealth Tracker continues to help
clients and prospects and now features new cash management and
digital banking capabilities. From a client/prospect communication
standpoint, the app offers proprietary insights and reports from Stifel’s
CIO Office and research analysts. We’ve also rolled out powerful new client performance reporting tools and a new CRM
implementation that will enable 100% mobility and fully integrate with our key business applications.

Stifel Bancorp ended the year with $18.9 billion in assets while maintaining a conservative risk profile. Stifel Bancorp’s credit
metrics remained solid, with a non-performing asset ratio of 0.07%, an improvement of two basis points from 2019. Our asset
quality metrics compare very favorably to the overall market and reflect our conservative approach. Firm-wide assets totaled
$26.6 billion, and we ended the year with a Tier 1 leverage ratio of 11.9% and a risk-based capital ratio of 20.2%.

INSTITUTIONAL GROUP

Investment Banking revenues totaled $916 million in 2020. Capital-raising revenue totaled a record $524 million, a 42%
increase from 2019, while advisory revenue was $428 million.

In 2020, a surge in volatility and the significant contraction of economic activity negatively impacted our advisory business
in the early part of the year, particularly in the financials and technology verticals, as well as our fund placement business.
Taken alone, these factors without the subsequent pickup might well have led to a decline in revenue from 2019.

However, the diversity of our business model, coupled with a rebound in activity in the second half of 2020, enabled us
not only to post another record year, but to surpass the high end of our guidance. This was due to the fact that our 2019
acquisitions performed slightly better than we expected, and our investment banking business benefited from the strength
of our healthcare franchise, which more than offset the weakness in financials.

On the advisory front, we completed 183 M&A strategic advisory assignments. In terms of verticals, our top performers were
consumer, industrials, and technology.

Noteworthy assignments include serving as financial advisor to Ionis on its $500 million
acquisition of the remaining ~24% of Akcea common stock it did not already own; exclusive
financial advisor to Urban Farmer in its sale to Paine Schwartz Partners; and exclusive advisor
to Velocity Technology Solutions Inc. in its sale to Navisite, owned by Madison Dearborn
Partners. In addition, we won The M&A Advisor’s “Strategic Deal of the Year” Award in the
$50 million – $100 million category for advising on the sale of B&G Crane Services.

The M&A Advisor’s
“Strategic Deal of
the Year” Award

Y E A R I N R E V I E W

Our KBW subsidiary posted another solid year despite the headwinds of 2020, advising on three of the top five largest U.S.
bank mergers: Huntington Bancshares Incorporated’s merger with TCF Financial Corporation, South State Corporation’s merger
with CenterState Bank Corporation, and First Citizens BancShares, Inc.’s merger with CIT Group Inc.

With respect to equity capital raising, we completed 30 book-run IPOs and 71 book-run follow-ons in 2020. Notable
transactions include serving as joint global coordinator and joint bookrunner to Renalytix on its cross-border IPO; sole
bookrunner to Inseego on its $100 million convertible senior notes offering; joint bookrunner to GFL Environmental on its
$2.2 billion IPO; and acting as financial advisor and selling agent to Eastern Bancshares on its $1.8 billion full conversion.
Equally impressive, we acted as sole structuring advisor, initial purchaser, and placement agent for a $175 million private
144a offering of common stock by NetSTREIT.

KBW ranked No. 1 in equity capital raising for regional and community banks in 2020 and acted as joint bookrunner for
Signature Bank’s preferred equity offering – the largest transaction size and lowest dividend rate for any non-investment-
grade-rated preferred offering for a bank under $100 billion in assets.

We are also a market leader in the burgeoning special purpose acquisition company (SPAC) space, advising on more than
20 transactions in 2020, including 10 IPOs, 2 PIPEs, and 13 de-SPAC engagements.

Stifel’s debt capital raising is anchored by our Public Finance business, which is driven by both geographic and sector
diversification. For the 11th consecutive year, Stifel led the nation in the number of municipal negotiated issues, serving
as sole or senior manager for 929 transactions with a total par value of nearly $18.2 billion. In addition, the late 2019
acquisition of the business of George K. Baum expanded Stifel’s reach both in terms of geographic coverage and growing
specialty practices.

On the corporate side, highlights from 2020 include serving as joint bookrunning manager and joint lead arranger on a senior
secured credit facilities and senior notes offering to support Centerbridge Partners’ acquisition of American Bath Group from
Lone Star Funds, with management retaining a stake in the business, and as sole placement agent on a senior secured credit
facilities for Banyan Software, successfully raising flexible debt capital through a competitive syndication process.

In addition, we had a record year for debt capital raising for financials and
ranked No. 1 in debt and preferred capital raising for regional and community
banks. KBW served as lead bookrunner for Signature Bank’s subordinated
debt offering – the largest ever 10NC5 subordinated debt issuance for a
regional bank.

No. 1
in equity, debt, and
preferred capital
raising for regional
and community banks

Our Institutional Sales and Trading businesses posted record revenue of $662
million, an increase of 57% over 2019. Fixed Income Brokerage was up 58% to
a record $405 million, while Equity Brokerage was up 54% to $257 million.
While we anticipate market volatility in 2021 will likely be lower than in 2020, we expect to see increased contributions from
our electronic businesses, which include our ATS and algo products.

A Stifel Company

In our Fixed Income business, our results continue to be driven by activity in our rates businesses, including municipals, as well
as in investment-grade and high-yield credit. We have also seen solid results from our non-CUSIP businesses, which we have
been investing in for the past few years.

In Equities, the closing of the acquisitions of MainFirst in Europe and GMP in Canada (since rebranded Stifel Europe and Stifel
Canada, respectively) in the fourth quarter of 2019 significantly bolstered our equity capabilities. We expect to see continued
progress in our cross-border flows in 2021. Finally, underscoring our commitment to Equities, combined, Stifel and KBW
remain one of the largest providers of research coverage in North America and Europe.

REFLECTING ON OUR 130TH YEAR

Despite the challenges and turmoil of 2020, Stifel’s 130th year was the best year in our history. Undoubtedly, we will look back
on this year as a pivotal chapter in our history, yet another storm that we’ve successfully navigated together. And we’re highly
optimistic about the post-COVID future of our firm, our industry, and our country.

*Adjusted to reflect the December 2020 three-for-two stock split

THANK YOU. Each year, at the conclusion of our letter, we thank our colleagues for their efforts and for giving us
the privilege of leading them. This year we thought it more appropriate to express our thanks at the beginning of
our letter. As the preceding indicates, our financial results for 2020 were nothing short of spectacular. The below
chart clearly highlights that, while impressive, 2020 was not unique. In fact, every year since Ron became CEO has
been a year of record revenue.

A HISTORY OF GROWTH

1 5 . 3 %

C A G R

1
9
0
,
1
$

0
7
8
$

3
6
7
$

2
3
3
,
2
$

8
0
2
,
2
$

3
7
9
,
1
$

4
9
5
,
1
$

2
8
3
,
1
$

3
9
3
,
1
$

2
5
7
,
3
$

7
3
3
,
3
$

5
2
0
,
3
$

6
2
9
,
2
$

5
7
5
,
2
$

G
A
A
P

N
E
T

R
E
V
E
N
U
E
S

(
$
M
M

)

2
0
1
$

3
2
1
$

7
2
1
$

1
4
1
$

7
7
1
$

8
8
1
$

7
1
2
$

7
4
2
$

4
6
2
$

2
5
4
$

1996

1997

1998 1999 2000 2001 2002 2003 2004

2005 2006 2007 2008 2009 2010 2011

2012

2013

2014

2015

2016

2017

2018

2019 2020

But unlike previous years, this past year brought uncharted territory for all of us. So, how does a company achieve
exceptional results in a year that saw a pandemic, societal unrest, a contested presidential election, and numerous
environmental emergencies? By having a group of talented, dedicated, caring colleagues willing to make the
sacrifices necessary to do so, all the while maintaining a spirit of inclusiveness and acceptance. 2020 was a difficult
year for many, and the compassion and resilience exhibited by you, our Stifel colleagues, will be the lasting legacy
for how we have come through this together. We are truly indebted to you for the empathy you have exhibited
toward your coworkers and the members of each of your respective communities.

So, thank you. While you have always made us proud
by your efforts and performance, this past year served
to remind us of just how powerful the spirit and culture
of the people we have surrounded ourselves with are.

As we look forward to 2021, our sights are set not only
on continuing our impressive financial performance, but
on the hope and realization of a fresh new beginning.
One where we can join with colleagues, clients, family,
and friends to move past the difficulties of 2020 and
into an era of hope and growth, both personal and
professional.

It is with that hope and optimism that we look forward
to joining all of you, our dedicated colleagues who make
Stifel what it is, as we head into that bright future.

VICTOR J. NESI
Co-President

JAMES M. ZEMLYAK
Co-President

O U R C O M M I T M E N T T O P R O G R E S S

At Stifel, we believe that focusing on issues such as diversity and inclusion and environmental, social, and governance (ESG)
concerns is not only good for our business but, more importantly, the right thing to do.

Here are a few examples of what we’re doing as a firm to provide a diverse and welcoming work environment and incorporate
ESG principles into our business practices.

D I V E R S I T Y A N D I N C L U S I O N

One of our most successful diversity efforts is our Women’s Initiative Network
(“WIN”), a companywide initiative designed to help women at every stage of
their careers at the firm reach their potential in their personal and professional
lives by providing networking and mentoring opportunities.

WIN has provided a framework for other diversity initiatives at Stifel, such as
the Stifel Diversity & Inclusion Champions, which is focused on outreach – to
our associates, to employment candidates, and to the communities where we
work and live – with the goal of helping make Stifel a firm that truly reflects the
diverse clients we serve and the diversity of our associates.

Stifel is a President’s Circle sponsor of the Financial Women’s Association
(FWA) of New York. The FWA is an organization committed to developing
future women leaders and enhancing the role of women in finance, and this
partnership will bring even more opportunities for our female associates to
collaborate, network, and expand their skill sets while also giving back to the
community through mentoring.

In our Investment Banking division, programs such as Women’s Experience
Week have increased the exposure to senior professionals and the broader
Stifel platform to the benefit of up-and-coming female bankers, and all
bankers. In addition, we continue to focus on bringing fuller gender balance
and greater racial diversity to Stifel through initiatives such as our new
Sophomore Explorers Program, a four-week career exploration program for
undergraduate sophomores who identify as Black, Hispanic, Native American,
female, or LGBTQ+, or who are veterans or have disabilities.

“

We are delighted to be part of a
firm whose women’s initiative was
developed for women by women.
While other firms glossed over what
they offered, WIN shined during
our interview at Stifel. I knew we
wouldn’t get lost in a “sea of men”
culture here, and I’m glad to say
it has shown from the top down.
- The Mastilak Wealth Management Group

”

The need for greater diversity and tolerance was underscored during the
summer of 2020 as the United States dealt with significant racial and cultural
issues. CEO Ron Kruszewski communicated his personal commitment to
“Listen and Act” to find ways to address racial and other inequality as a
company – both as an employer and as a corporate citizen. The response
to this call was powerful – Stifel personnel proved interested, engaged, and
willing to provide input. Over 100 Stifel associates met with our CEO in groups of 10-15 to discuss their experiences and how
the organization can better support and understand a diverse team.

E N V I R O N M E N T A L , S O C I A L , A N D G O V E R N A N C E

BOARD OF DIRECTORS
The composition of our board reflects diversity in business and professional experience, skills, gender, and ethnic background.
Our directors understand that our long-term success as a company and our ability to generate sustainable value for our
shareholders is not possible without a corporate culture that puts the needs of our clients, the community, and our associates
first. The board has prioritized oversight of ESG matters at Stifel, and in 2020 it created a standalone Corporate Governance
and Nominations Committee, which has the responsibility for oversight of much of Stifel’s ESG initiatives.

This committee sharpens the board’s focus on diversity and governance matters, from the hiring of interns to the promotion
of talent to management to the recruitment of directors that bring the right mix of skills and experiences to our board as it
oversees our growing, entrepreneurial firm well into the future.

GLOBAL WEALTH MANAGEMENT

Our clients are increasingly focused on impact investing. As such, they trust us to guide them to investments in firms that
make positive contributions in climate change, access to water, gender diversity, and supply change management.

Our 1919 Investment Counsel asset management subsidiary has more than 40 years’ experience managing socially
responsible portfolios and is a signatory of the United Nations’ Principles for Socially Responsible Investment.

In addition to offering specific socially responsible funds, such as 1919’s Socially Responsive Balanced Fund, we tailor advice
to the socially responsible issues that are important to our clients, such as the environment, employment practices, and
human rights concerns.

STIFEL BANK/STIFEL BANK & TRUST

Stifel Bank and Stifel Bank & Trust are involved in a number of efforts focusing on financial literacy and capabilities, personal
savings programs, affordable housing and homeownership, health and wellness, and workforce training.

In addition to making home loans to low- and moderate-income (LMI) persons and in LMI communities, we’ve donated
millions of dollars to non-profits that specifically help the LMI population through community services, affordable housing,
healthcare, and financial literacy.

We also play a major role in financing affordable housing developments, revitalization efforts, small business growth, and
the operations of non-profits while investing in small business growth funds, tax credit-backed real estate rehabilitations,
and affordable housing construction.

In addition, Stifel supported the Contractor Loan Fund in St. Louis, providing funds for minority- and women-owned
construction companies that are not yet eligible for traditional bank financing. We also worked with the NAACP to provide
critical bridge financing to help save the first Black-owned-and-operated bank in Missouri.

EQUIT Y RESEARCH

In 2020, our Equity Research department developed Stifel’s ESG Assessment
Framework, which our analysts use to evaluate and communicate the relative
ESG strengths, weaknesses, and investment risks for each covered company.

The framework focuses on the three primary areas of ESG: environmental,
social, and governance, and within each area we identify a number of
salient subcategories or standards, with guidance on how each should be
evaluated. We assess each company’s ESG commitment, disclosure levels,
third-party rankings, and other available data. These initial data findings are
then discussed with management to ascertain the accuracy of findings and to
understand future plans.

Ultimately, our assessment of ESG is aimed at determining whether we think ESG has
a positive, neutral, or negative impact on the future investment profile of the company.

FIXED INCOME

Our focus on ESG extends to our leading fixed income franchise. The breadth and depth
of our business enables Stifel to help our clients invest in green bonds, sustainability
bonds, and social impact bonds that support targeted, community-based projects.

Our Public Finance group has underwritten more than $600 million in bonds for
low- and middle-income school districts and affordable housing in the last three years.

Additionally, our Fixed Income group sponsors the Fabric of Society scholarship
program, which provides scholarships annually to graduating seniors at 50
pre-selected high schools.

In 2020, we expanded
our program from 50
scholarships to 75

G L O B A L W E A L T H M A N A G E M E N T

Our Global Wealth Management segment provides a full range of investment products and services to individuals and
families through the consolidated Stifel branch system.

We’ve built one of the nation’s largest wealth management platforms by fostering an entrepreneurial, advisor-centric
culture that empowers our advisors to do what’s best for their clients. We also back them with the tools and support they
need to deliver personalized service and address even the most complex client needs.

PRIVATE CLIENT
GROUP

2,280 financial
advisors serving
clients from 392
offices across the U.S.

STIFEL
BANCORP

Offering a full
range of retail and
commercial banking
and trust services

2020 HIGHLIGHTS

ASSET
MANAGEMENT

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

Record revenues of $2.2
billion, up 3% from 2019

Brokerage revenues of $687
million, up 6% from 2019

Private Client fee-based assets increased 22% year over year

U.S. INVESTMENT BANKS WITH WEALTH MANAGEMENT
RANKED BY NUMBER OF ADVISORS

RANK

FIRM

ADVISORS

Bank of America Merrill Lynch

Morgan Stanley Wealth Management

Wells Fargo Advisors

Raymond James

UBS

JPMorgan

Stifel

Oppenheimer & Co.

Source: SIFMA and publicly available information

17,331

15,950

13,613

8,233

6,305

2,462

2,280

1,002

PRIVATE CLIENT GROUP

ASSET MANAGEMENT

• $20.7 billion in assets under management

• $9.1 billion in assets under advisement

• Total assets increased 24% in 2020

• Washington Crossing Advisors subsidiary
grew client assets by $3.6 billion from 2019

STIFEL ASSET
MANAGEMENT AFFILIATES

$357 billion
in client assets,
up 9% from 2019

• Successfully pivoted to virtual advisor
recruiting during the pandemic

• Recruited 131 advisors with a total trailing
12-month production of $103 million

• Opened 16 new Private Client Group offices

• Expanded geographic footprint into
New Mexico, Utah, and West Virginia

• Added capabilities that attract advisors
and differentiate Stifel, including new
digital offerings and enhanced
performance reporting tools

STIFEL BANCORP

$18.9 billion
in bank assets

$4.5 billion
in trust assets under
administration

• Helped over 10,000 families purchase
homes or obtain a more affordable
mortgage, with more than $4.2 billion
in loans closed

• Successfully managed a diverse
commercial and real estate loan portfolio
of $5.1 billion across 10 sectors, ending
the year with an industry-low level of
0.07% non-performing assets

• Expanded our venture and fund banking
commitments to nearly $2 billion

• Provided small business clients access
to COVID relief programs and funded
$364 million in PPP loans

• Helped clients meet philanthropic goals,
with over $50 million donated to Stifel
Donor-Advised Funds in 2020

I N S T I T U T I O N A L G R O U P

Our Institutional Group segment supports clients across a wide spectrum of strategic situations. Our expertise spans sectors
and products in both the public and private markets.

Whether our clients are seeking capital, strategic advice, trade execution, investment ideas, or other institutional services,
our team of professionals brings an intense focus and commitment to excellence to every assignment.

Canada

A Stifel Company

Focus | Excellence | Results
The Power of Our People and Platform

EQUITIES

Experienced sales
& trading team with
extensive distribution
capabilities

INVESTMENT
BANKING

A global team with
deep experience
across all products
and industry
verticals

FIXED INCOME

Comprehensive
platform including
research, strategy,
and debt capital
markets teams

RESEARCH

Award-winning equity and fixed income research

2020 HIGHLIGHTS

Record revenues
of $1.6 billion,
up 30% from 2019

Record institutional
brokerage revenue of
$662 million,
up 57% from 2019

Record investment
banking revenue
of $916 million,
up 18% from 2019

Expanded further into
continental Europe
and Canada, giving us a
presence in virtually all major
global financial centers

EQUITIES

INVESTMENT BANKING

FIXED INCOME

• Record equity brokerage revenue
of $257 million, up 54% from 2019

• Record capital-raising revenue of
$488 million

• Launched STFX (Stifel ATS) and
proprietary electronic trading suite

• Traded over 8 billion shares in the
U.S.; over $43.6 billion in value
executed in the UK and Europe

• One of the industry’s largest
research platforms with more than
2,000 stocks covered globally

• Achieved 14th consecutive top ten
finish in the U.S. Refinitiv StarMine
Analyst Awards

• Won 22 awards in Refinitiv
StarMine’s international analyst
awards

• Ranked No. 1 provider of Canadian
small cap research in the Brendan
Wood survey

• Pivoted to a virtual format
for our annual Cross Sector Insight
Conference, with a record 3,600
attendees and 380 participating
companies

• Named Investment Bank of the
Year by Mergers & Acquisitions
magazine

• Completed more than $200 billion
in transactions

• Executed more than 380 debt and
equity offerings

• Served as bookrunner on more
than 140 offerings

• Advised on three of the five largest
U.S. bank mergers of 2020 and
nine of the 15 largest since 2019
(60% market share)

• Won The M&A Advisor’s Strategic
Deal of the Year Award ($50MM-
$100MM category) for advising
on B&G Crane Services’ out-of-
court sale

• Acted as placement agent for the
year’s largest first-time European
private market fund, raising €1.7
billion for Arrow Global Group

• Record fixed income brokerage
revenue of $405 million, up 58%
from 2019

• Record capital-raising revenue of
$182 million, up 43% from 2019

• Led the nation in number of
municipal negotiated issues,
serving as sole or senior manager
for 929 transactions with a total
par value of nearly $18.2 billion

• Only non-bulge bracket firm in
the global top ten of Institutional
Investor’s Global Fixed Income
Research Survey

• Largest sales force among
specialist peers; helped raise
$8 billion for 50+ clients in 2020

• Bookran approximately 50%
of debt in $100 million+ sized
offerings post-COVID, raising
almost $3 billion of Tier 2 capital

T E C H N O L O G Y I N V E S T M E N T S A N D P L A T F O R M C A P A B I L I T I E S

Over the last several years, we have been driving digital transformation across Stifel, modernizing our client-facing
technologies, professional systems, service offerings, core infrastructure, security focus, and even our organizational
approach. Today, we are well into the journey and are seeing significant benefits.

STIFEL WEALTH TRACKER
Starting from the most important lens – the client – we
continue to enhance our Wealth Tracker platform. Wealth
Tracker adoption accelerated last year as clients spent
significant time digitally managing many aspects of their
lives. Wealth Tracker has quickly become the central hub
for client engagement and is well positioned to bridge and
strengthen relationships between our financial advisors
and their clients. We have a solid pipeline of features and
benefits that will roll into the system with a continued focus
on financial organization, banking and wealth management
functionality, and other key system integrations. We’re
excited about the future of Wealth Tracker.

DIGITAL TRANSFORMATION
Our digital transformation has also touched many essential
systems that our wealth management professionals use
every day – tools for trading, portfolio management, work flow,
account onboarding, financial planning, proposal generation, research, and performance reporting.

Wealth Tracker delivers
organization, convenience,
and a total view

Our vision is to integrate all of these systems into a best-of-breed solution that serves the professionals who advise their
wealth management clients. These efforts are paying off, and the systems that are coming together are truly one of a
kind in the industry. Here are just a few examples of the technology investments we’ve initiated throughout our digital
transformation:

• We have embraced and successfully integrated new collaboration tools, such as video conferencing and mobile
communication.

New ways of connecting
are here to stay

Industry-leading financial
planning and advisory platforms

Seamless workflow
with DocuSign

• We offer seamless integration to MoneyGuidePro for financial planning and automatically integrate both custodied
and outside assets into client plans.

• Our partnership with DocuSign continues. We are working to streamline all of our workflows and integrating with
DocuSign to deliver a great client experience and significantly reduce our paper footprint.

• As an early adopter of Vestmark’s advisory platform, we have deep expertise with this sophisticated system and can
offer the most complex of fee-based solutions to clients.

• We run the industry’s leading
performance reporting
system – Addepar. The
system allows our advisors

to provide a high-touch, fully

customized experience,
aggregating all of their clients’
investable assets to report on
their full financial picture. And
our operations teams perform
daily reconciliation of this
system to ensure accurate
portfolio reviews.

Unparalleled performance
reporting capabilites

T E C H N O L O G Y I N V E S T M E N T S A N D P L A T F O R M C A P A B I L I T I E S

• We differentiate the firm through our unique partnership with
OurCrowd, the industry’s disrupter in the private market space.

• We are developing a new proposal generation tool to facilitate timely
and accurate portfolio evaluations with customized recommendations.

ENHANCED COLLABORATION

In 2021, we will be rolling out Salesforce to our entire wealth management business. We envision Salesforce becoming the
digital hub for our advisors and client service associates, providing for integrated connectivity to the full suite of systems
that support our wealth management business. The platform is forward looking, mobile friendly, and enables superb
collaboration and follow through. In a word, Salesforce will help our continued growth, because it is being built by advisors
for advisors.

Regarding capabilities for our institutional professionals, 2021 marks our third year on Salesforce. The platform allows
for unparalleled connectivity and collaboration across our research, sales, trading, and investment banking areas. This,
in turn, allows our most senior leaders to bring the full power of the firm to every client engagement. The well-architected
integration of the platform is delivering significant benefits to the institutional business. Salesforce truly helps us deliver
on our “focused” objective.

World-class
CRM integration

LAUNCH OF PROPRIETARY ELECTRONIC TRADING
We are driving other technology changes in our institutional business as well. Stifel
has successfully launched a set of proprietary electronic trading tools that are now
used by some of the largest financial institutions in the world – always seeking to
provide liquidity and the best execution prices available.

Because we had moved early to develop stronger electronic trading capabilities,
today we are able to innovate. And we are even beginning to extend our trading
reach to additional global markets. Looking forward, we are now making plans
to do the same with our fixed income businesses.

STIFEL
ELECTRONIC
TRADING

STAT | STFX

KEEPING PACE WITH INNOVATIVE TECHNOLOGIES
Technology has always been at the heart of our industry. And today, the pace of change is faster than ever. New
technologies supplant legacy capabilities overnight. For this reason, we are committed to staying on the forefront with
an eye to changing quickly. This attitude allows us to learn, adapt, and continuously move forward. Most importantly,
when we do this, our clients, large and small, individual, municipal, or corporate, can feel the difference.

Extensive remote
capabilites

Our remote capabilities
have carried the
entire firm through
the disruption of the
pandemic and have only
improved over time.

S T I F E L T H O U G H T L E A D E R S H I P

At Stifel, our clients may have wide-ranging needs, but they all have one thing in common: the need for solid, studied advice.

So it only makes sense for us to invest in intellectual capital as we work to deliver that advice.

That’s why we’ve assembled an industry-leading team of influential thought leaders, with diverse backgrounds and
unique specialties.

Through their timely insights and in-depth analysis, they help our clients and client-facing professionals better understand
the complex market, economic, geopolitical, and behavioral factors affecting investors and businesses today.

Stifel’s thought leaders help us stand out from our competitors, but most importantly, they help our clients make informed
decisions and position themselves to meet their strategic goals.

T H O U G H T
L E A D E R S H I P

T E A M

BARRY BANNISTER, CFA
Head of Institutional Equity Strategy

LINDSEY PIEGZA, PhD
Chief Economist

SNEHA JOSE
Director of Behavioral Finance

MICHAEL O’KEEFFE, CFA

Chief Investment Officer

BRIAN GARDNER
Chief Washington Policy Strategist

B O A R D O F D I R E C T O R S

Ronald J. Kruszewski
Chairman of the Board
and Chief Executive Officer

Adam T. Berlew
Executive Director of Americas Marketing
Google Cloud

Kathleen Brown
Partner
Manatt, Phelps & Phillips, LLP
Lead Independent Director

Michael W. Brown
Former Vice President and
Chief Financial Officer
Microsoft Corporation

Robert E. Grady
Advisory Partner
Summit Partners

Daniel J. Luedeman, Sr.
President and CEO
Concordance Academy of Leadership

Maura A. Markus
Former President and Chief Operating Officer
Bank of the West

James M. Oates
Chairman
Hudson Castle Group, Inc.

David A. Peacock
President and Chief Operating Officer
Schnuck Markets, Inc.

Thomas W. Weisel
Senior Managing Director

Michael J. Zimmerman
Vice Chairman
Continental Grain Company

S H A R E H O L D E R I N F O R M A T I O N

ANNUAL MEETING
The current public health and travel situation may make it difficult for some shareholders to make plans to attend an
in-person meeting. For this reason, our 2021 Annual Meeting of Shareholders will be virtual-only, Wednesday, May 26,
2021, at 9:30 a.m. Central. For instructions on how to access, vote, and submit questions at the virtual meeting, please
refer to page 2 of our proxy statement distributed on April 9, 2021.

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
last two calendar years are as follows, with per share information adjusted to reflect the December 2020 three-for-two
stock split:

SALES PRICE

2019

2020

CASH DIVIDENDS

2019

2020

High

Low

High

Low

First Quarter

38.02

26.53

46.07

20.75

0.10

0.11

Second Quarter

Third Quarter

Fourth Quarter

39.95

41.29

42.35

35.27

33.83

33.09

37.66

37.14

52.67

23.26

29. 52

33.47

0.10

0.11

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
A reconciliation of GAAP Net Income to Non-GAAP Net Income and GAAP Net Income Per Diluted Common Share, the most
directly comparable measure under GAAP, to Non-GAAP Earnings Per Diluted Common Share is included in the table below.

(in thousands, except per share amounts)

2016

2017

2018

2019

2020

GAAP net income

Preferred dividends

$81,520

$182,871 $393,968 $448,396

$503,472

3,906

9,375

17,319

27,261

GAAP net income available to common shareholders

77,614

173,496

384,593

431,077

476,211

Tax reform, net of tax

Litigation charges, net of tax

Acquisition revenues, net of tax

Acquisition charges, net of tax

Compensation

Other non-compensation

U.S. tax benefit 1

Non-GAAP net income

GAAP earnings per diluted common share 2

Adjustments 2

Non-GAAP earnings per diluted common share 2

—

2,681

63,718

41,692

—

85,426

22,667

1,251

21,766

14,930

3,847

—

5,251

—

132

—

117

13,400

24,288

26,179

24,139

23,339

23,180

—

$185,705

$323,383

$429,442 $479,636

$522,847

$0.67

0.92

$1.59

$1.43

1.23

$2.66

$3.15

0.37

$3.52

$3.66

0.41

$4.07

$4.16

0.40

$4.56

1 U.S. tax benefit in connection with the favorable impact of the adoption of new accounting guidance associated with stock-based compensation and the revaluation
of the Company’s deferred tax assets as a result of the enacted tax legislation in 2017.
2 Adjusted for December 2020 three-for-two stock split.

S T I F E L L O C A T I O N S

Public Finance
Private Client Group
Investment Banking
Institutional Sales Offices
(Equity & Fixed Income)

Stifel Financial Corp. | www.stifel.com
One Financial Plaza | 501 North Broadway | St. Louis, Missouri 63102