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Legg Mason CapitaL MarketsMainFirstBank AGSterne AgeeBARCLAYSWealth & Investment Management, Americas
T
OICE
VESTMEN
OF C
H
IN
O
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F
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WHERE
SUCCESS
MEETS
SUCCESS
ADVISOR
OF CHOICE
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 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.
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
2018
2019
2020
2021
2022
Total Revenues
Net Income Available to Common Shareholders
Earnings Per Diluted Share1
Non-GAAP Net Income2
Non-GAAP Earnings Per Diluted Share1,2
$3,194,957
$384,593
$3.15
$429,442
$3.52
$3,514,961
$431,077
$3.66
$479,636
$4.07
$3,817,839
$476,211
$4.16
$522,847
$4.56
$4,783,086
$789,271
$6.66
$839,533
$7.08
$4,592,826
$624,874
$5.32
$675,071
$5.74
FINANCIAL POSITION:
in thousands, except per share amounts
Total Assets
Shareholders’ Equity
Book Value Per Share1
2018
2019
2020
2021
2022
$24,519,598
$3,197,593
$28.41
$24,610,255
$3,614,791
$32.24
$26,604,254
$4,238,766
$35.91
$34,049,715
$5,034,959
$41.63
$37,196,124
$5,328,471
$44.08
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; and (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. See Reconciliation of GAAP net income to non-GAAP net income at the back
of this book.
TOTAL REVENUES
(In millions)
NON-GAAP NET INCOME
(In millions)
2
NON-GAAP EARNINGS
PER DILUTED SHARE
1,2
5,000
4,000
3,000
2,000
0
40,000
30,000
20,000
10,000
0
860
645
430
215
0
8.00
6.00
4.00
2.00
0
18
19
20
21
22
18
19
20
21
22
18
19
20
21
22
TOTAL ASSETS
(In millions)
SHAREHOLDERS’ EQUITY
(In millions)
BOOK VALUE PER SHARE
1
6,000
4,500
3,000
1,500
0
45.00
35.00
25.00
15.00
0
18
19
20
21
22
18
19
20
21
22
18
19
20
21
22
1
S H A R E H O L D E R L E T T E R
At Stifel, we strive to be the place “Where Success Meets Success.” Our goal is threefold: to be
“advisor of choice” for the most successful and ambitious clients, “firm of choice” for the brightest
minds in our business, and “investment of choice” for the most visionary investors in the market.
Our execution has always started with our clients – families, companies, municipalities, schools,
and more – to whom we have provided exceptional service and advice for more than 130
years. We connect them with entrepreneurial and talented individuals, collaborating as teams,
who have chosen Stifel as their “firm of choice.” The cover of this year’s report celebrates
the many successful firms that have joined Stifel as it has grown, creating a balanced and
efficient investment management and global investment banking company. Through
organic hires and accretive mergers, Stifel has become a mosaic of successful teams and
entrepreneurs – a company “Where Success Meets Success.”
I am often asked for the formula that allowed the successful integration of so many different
firms into Stifel. While there are many ingredients, by far the most potent is an attitude of
respect for the people and the capabilities of the firms that join us. At Stifel, we recognize that
every firm we acquire is comprised of talented, entrepreneurial associates equipped with ideas,
products, and technology which, if properly nurtured, would only serve to make Stifel a better firm
with more relevance to our clients. We understand that we must learn from and adapt to the new
associates and the firms we acquire. There is no better illustration of this formula than the 16
CEOs who joined Stifel in major acquisitions and remain my partners to this day. Stifel is the place
“Where Success Meets Success,” but it is also where success finds a home.
REVIEW OF 2022
When you look at 2022, it was a year marked by significant geopolitical turmoil and 40-year highs
in U.S. inflation, which precipitated rapid central bank tightening. In turn, these events put pressure
on equity valuations, illustrated by the 19% decline in the S&P 500. Taken together, these factors
had a chilling effect on capital-raising and related strategic activity, impacting our institutional
business worldwide.
Ronald J. Kruszewski
Chairman of the Board and Chief Executive Officer
Amidst this difficult environment, and marking Stifel’s 132nd year in business, 2022 represented our second best annual results, as our balanced
business model delivered return on average tangible equity of 22%. Stifel revenues totaled $4.6 billion and, on a non-GAAP basis, net earnings were
$675 million, or $5.74 per share. In addition, we increased our book value by 6% and our tangible book value by 9%. On the basis of our 2022 results
and our belief in consistently increasing our dividend, our Board of Directors approved a 20% increase to our common dividend, which now stands at
$1.44 per share, or $0.36 per quarter.
Please see the following “Year in Review” for a more detailed look at our company’s 2022 results.
EXECUTING OUR STRATEGY
Stifel is a growth company, and we will continue to reinvest in our business, as it has been instrumental in our long history of consistent profitable growth.
Our focus on long-term growth is a key factor in reaching our strategic objectives. Over the past 25 years, Stifel has grown from a small regional wealth
manager to a premier global wealth management and investment bank. As I look to the future, we will continue to grow both of our business segments,
wealth management and institutional services, by redeploying our substantial excess capital with the goal of generating the best risk-adjusted returns.
For our wealth management franchise, this means continuing to recruit high-quality financial advisors that choose to make Stifel their firm of choice due
to our advisor-friendly culture, expansive product suite, excellent technology, and industry-leading yet simple and fair compensation grid.
Stifel is an advisor-focused firm that offers a platform and a culture that enable financial advisors to grow their business without the bureaucracy that
plagues many firms. To help our advisors strengthen their client relationships, we continually seek their feedback on how we can improve the service
we provide and the capabilities we offer them and their clients. The ongoing improvements and investments we continue to make in our wealth
management business not only help us keep our advisors satisfied, they also help us recruit high-quality advisors looking to get more from their careers.
As we look forward, we believe we can reach $1 trillion in total client assets through a combination of strong recruiting, net new asset growth, and market
appreciation. This growth will not only help us grow our private client asset base, but increase our deposit base at our bank and further expand our bank
balance sheet, which has been a significant contributor to our top- and bottom-line growth.
Our Institutional Group has grown from essentially zero a little less than 20 years ago into a global business that has generated average total revenue in
the past three years of $1.75 billion. This was accomplished through both organic growth as well as a number of strategic acquisitions. To underscore
our growth, we have increased our ranks of managing directors to nearly 850 at the end of 2022, up more than three times the number we had in 2012.
While market conditions have weighed on this business, our increased scale enabled us to generate $971 million of investment banking revenue in 2022,
which was the second strongest year in our storied history. As I have stated numerous times, our growth is focused on increasing relevancy to our clients.
Stifel is always eager to embrace the opportunities presented by new technology. This year, developments in artificial intelligence (AI) – specifically
deep learning and large language models (LLMs) like ChatGPT – have demonstrated a remarkable potential for changing the way people interact
with unfathomably large data sets, such as the entire corpus of text on the internet. Greater use of AI tools is among the most significant potential
improvements to our digital capabilities as a firm, allowing clients and associates to better leverage their data and Stifel’s expanding digital
deployment. However, the use of AI comes with a critical responsibility for the security and privacy of our data, and that of our clients, associates,
and other partners. This responsibility is always foremost in our mind as we evaluate new technological opportunities.
2
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE
At Stifel, we seek to create a company that reflects the diverse communities that we serve
while creating and nurturing an environment where all associates feel they belong and are
respected. As such, we continue to integrate environmental, social, and governance (ESG)
considerations into our business practices. To us, it’s not just good for business, it’s the right
thing to do.
We are committed to acting and increasing our transparency on issues such as diversity and
inclusion, ethics and integrity, risk management, and sustainable finance. I am proud of the
significant strides we have made in our ESG initiatives in the past few years, and I invite our
shareholders to learn more about them by reading our Environmental, Social & Governance
Report, which is available at Stifel.com.
RECENT BANKING TURMOIL
The recent failures of Silicon Valley Bank and Signature Bank are, in my opinion, examples of a
classic “run on the bank” crisis. In this case, the banks operated under a very accommodative
fiscal policy, financed by an expansion of the Federal Reserve balance sheet. Easy money
policies, in conjunction with unprecedented fiscal stimulus, resulted in a substantial increase
in bank deposits without a corresponding increase in loan demand. Ironically, these banks
were encouraged to own government securities because of the low credit risk, high liquidity,
and low capital requirements. In addition, many thought it inconceivable that short-term rates
would increase nearly 500 basis points in a year. As many have commented, this significant
interest rate risk was “hiding in plain sight,” but risk management controls at both banks failed
to recognize it – along with the new speed at which depositors can move to withdraw.
The follow-on risk to our banking system is a regulatory overreaction to the failure of a few
banks with mostly idiosyncratic risks. The real damage to the system is the potential loss of
confidence in regional, mid-sized, and community banks, primarily as to the perceived safety
of uninsured deposits. Meanwhile, one can argue that the larger, globally systemic banks
benefited from this crisis. Look no further than the resolution of Credit Suisse to see that
certain institutions are treated as “too big to fail.” As a result, such institutions have implied
deposit insurance covering all their deposits, regardless of size – which explains why the
largest banks saw significant increases to their deposit balances during the crisis.
This market dynamic simply must change.
2022 RESULTS
(in thousands, except per share amounts)
TOTAL FIRM
Total Revenues
Non-GAAP Net Income
Non-GAAP EPS
2022
$4,592,826
675,071
5.74
%
(4)
(20)
(19)
GLOBAL WEALTH MANAGEMENT
Net Revenues
Contribution
AUM
$2,825,866
1,067,571
9
17
389,818,000
(11)
INSTITUTIONAL GROUP
Equity Net Revenues
Fixed Income Net Revenues
Net Revenues
Contribution
INSTITUTIONAL TRADING
Equity
Fixed Income
Total
INVESTMENT BANKING
Equity
Fixed Income
Total
Capital Raising
Advisory
$935,507
600,510
1,536,017
254,132
(36)
(14)
(29)
(55)
$200,512
(21)
370,198
570,710
3
(7)
$745,413
226,072
971,485
256,862
714,623
(40)
(32)
(38)
(64)
(17)
The United States financial system benefits from the local knowledge and community relationships that regional, mid-sized, and community banks provide.
Those benefits will be lost if we continue down the path of a de facto two-tiered system, whereby uninsured deposits are viewed as either at-risk (smaller
banks) or essentially insured at the “too big to fail” institutions. This is not an indictment of our large, global banks, as these institutions are equally
important to the United States, and the world, in terms of competitive global markets. But we must acknowledge the unintended consequences of tilting
the playing field so that uninsured deposits flow in their direction.
While I am generally opposed to government intervention in markets, the fact is that by treating banks as “too big to fail,” the government has already
intervened.
To level the playing field, I believe that all business deposits should be FDIC insured. The largest banks should pay their fair share of premiums for this
FDIC insurance, instead of paying nothing for the implicitly unlimited insurance they have for being “too big to fail.” Why business deposits? Because the
vast majority of uninsured deposits are, essentially, business deposits. They are the foundation for many smaller banks and provide the funding for local
development. Insuring all business deposits will provide a robust market environment, in which competition will be based on local dynamics, service, and
competitive rates – and not by the perception that deposits are essentially government guaranteed at the largest banks. I believe this policy would foster
a more stable foundation for our banking system.
Sometimes, the solution to problems is “hiding in plain sight.”
LOOKING FORWARD
Predicting the future economic landscape is difficult, as is forecasting interest rates. However, the convergence of inflation, higher rates, and quantitative
tightening represents financial conditions which have not been experienced for years, in fact decades. Despite my reservation about predictions, I do
believe that inflation is likely to be persistent and the market anticipation of rate cuts later this year optimistic. That said, Stifel is well positioned, through
our strategy and culture, to continue our long-term success and growth.
I would like to thank Kathleen Brown, as she retires from our Board of Directors, for her years of service, including recently as Lead Independent Director.
Kathleen has been a reliably fair, thoughtful, and incisive voice. She has helped guide Stifel’s continued growth and been a partner to me and her fellow
directors. I, and our shareholders, will miss her wise counsel.
As always, we sincerely thank our shareholders and clients for their support, as well as our approximately 9,000 associates for their commitment to
excellence and success.
Ronald J. Kruszewski
Chairman of the Board and Chief Executive Officer
April 2023
3
Y E A R I N
R E V I E W
Net revenues of
$4.4 billion,
the second highest
annual total in
Company history
Record net
revenues
in Global Wealth
Management
Record net
interest income,
up 79%
over 2021
Non-GAAP
pre-tax
margin
of 22%
For the year ended December 31, 2022, the Company reported net income available to common shareholders of $624.9 million, or
$5.32 per diluted common share, on net revenues of $4.4 billion. Non-GAAP net income available to common shareholders totaled
$675.1 million, or $5.74 per diluted common share.
A clear benefit of our strong financial metrics is the generation of significant cash flow. In 2022, Stifel increased our capital by
approximately $500 million.
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 pursuit of this objective, in 2022 we grew our loan portfolio by 23%, completed a strategic acquisition and entered into another, while
still repurchasing $106 million in common stock, and paying common and preferred dividends of approximately $171 million.
In addition, given our outlook for 2023, the increased reach and breadth of our business, and our ability to generate significant excess
capital after continued and anticipated investments in our franchise, we announced a 20% increase to our annual common dividend to
$1.44 per share from $1.20 per share.
Within our operating segments, Global Wealth Management achieved record revenue of $2.8 billion, an increase of 9% over 2021.
Our Institutional business reported revenue of $1.5 billion, our third highest ever, in a challenging environment marked by numerous
headwinds.
In 2022, Stifel increased
our capital by approximately
$500 million
20% increase
to our annual common dividend
44
G L O B A L W E A LT H M A N A G E M E N T
In 2022, advisor recruiting and growth in interest-earning assets fueled record results for our Global Wealth Management segment.
Our Private Client Group now consists of more than 2,300 financial advisors who serve clients from more than 400 offices across the U.S.
We had a strong year for financial advisor recruiting, adding 152 advisors with total 12-month trailing production of $70 million. Among
that figure were 23 advisors who joined our renewed independent broker-dealer subsidiary, Stifel Independent Advisors, LLC, which we
rebranded in 2021.
Our new recruits typically bring substantial client assets to our platform and generate a large percentage of their revenue in advisory
fees. This, combined with our increasing net interest income contribution, has increased our percentage of recurring revenue, which
adds greater stability and predictability of results. Our recurring revenue reached 76% for the year, which surpassed our previous full-
year high by 1,000 basis points. As of the end of 2022, we managed approximately $390 billion in client assets. Our fee-based assets
totaled $145 billion, and transactional revenues decreased 13%. Asset management revenues increased 5% from 2021 to a record
$1.3 billion.
Stifel Bancorp ended the year with $29 billion in assets while maintaining a conservative risk profile.
Highlighting the year for Stifel Bancorp was a record $866 million in net interest income, a 71% increase from 2021. Strong demand
for mortgage loans, securities-based lending, and fund banking helped us grow our loan portfolio by 23% to $20.6 billion. Worth
highlighting is our high-yield savings account, Stifel Smart Rate, which has enabled us to increase client deposits over the past few
quarters while many firms in our industry have been dealing with the impact of cash sorting by clients looking for higher yields on
their cash.
Global Wealth Management achieved
record revenue of
$2.8 billion
an increase of 9% over 2021
Stifel added 152 advisors with total
12-month trailing production of
$70 million
Our Private Client Group now consists of more than
2,300
financial advisors
Asset management revenues increased
5% from 2021 to a record
$1.3 billion
4
5
Y E A R I N
R E V I E W
I N S T I T U T I O N A L G R O U P
Despite a difficult market environment and challenging microeconomic conditions, we leveraged the investments we’ve made in
people, products, and technology, combined with our organic growth and strategic acquisitions, helping our Institutional Group
achieve revenues of $1.5 billion in 2022, our third highest annual revenue.
Within the Institutional Group, Investment Banking revenues totaled $952 million in 2022. We were pleased to be named Investment
Bank of the Year by Global M&A Network and No. 1 Virtual Roadshow Broker in North America in IR Magazine’s Global Roadshow Report.
Our advisory practice recorded revenue of $715 million, our second highest full-year total.
Stifel and Miller Buckfire won The M&A Advisor’s Distressed M&A Deal and Divestiture of the Year awards for advising on the
restructuring and asset sale transaction for Sequential Brands Group, Inc. and Restructuring Deal of the Year award for advising on
Sable Permian Resources Finance’s Chapter 11 restructuring. In addition, Miller Buckfire was named Restructuring Investment Bank
of the Year by Global M&A Network.
We bolstered our capabilities with the acquisitions of ACXIT Capital Partners, a leading
independent corporate finance and financial advisory firm serving European middle-market
clients and entrepreneurs, and Torreya Partners, a leading independent M&A and private
capital advisory firm serving the global life sciences industry.
With respect to capital raising, revenues totaled $237 million. Equity capital-raising revenue
totaled $103 million, and fixed income capital-raising revenue totaled $134 million. Once
again, our Public Finance group was the nation’s leading municipal bond underwriter,
increasing our market share in number of negotiated transactions to 15.3%. In addition,
we partnered with Korea Investment & Securities Co., Ltd., a leading Korean financial
services firm, to form SF Credit Partners, an innovative leveraged lending joint venture that
has extended the reach of each firm into new markets and is increasing both firms’ relevance
to their existing clients.
Our Institutional Sales and Trading businesses posted revenues of $571 million in 2022, our
third highest total ever. That figure comprises $201 million in Equity Transactional revenue
and $370 million in Fixed Income Transactional revenue, a 3% increase fueled by our
acquisition of Vining Sparks, which closed in late 2021.
In addition, in our Equities business, our electronic trading platform saw record activity in 2022, driven by growth in algorithmic trading,
and we increased market share in U.S. transactional volume in both high- and low-touch trading.
We also remain one of the largest and most respected providers of research coverage in North America and Europe. Among our
achievements in 2022, Stifel placed fifth in Institutional Investor’s U.S. Global Fixed Income Research Survey, with Stifel and our KBW
subsidiary combining to rank or runner-up in five equity research categories, and KBW ranked No. 1 in four categories in the 2022
Coalition Greenwich Study.
6
P R E S I D E N T S L E T T E R
In the accompanying shareholder letter, Ron highlights the
single most important ingredient in our talent acquisition
strategy – “an attitude of respect for the people and the
capabilities of the firms that join us.” Said another way,
we recognize that before combining with Stifel, each
organization was successful on its own, but together
we are even stronger. Success meeting success.
While Ron highlights the 16 CEOs who remain with us as
partners, a number of which are quoted on the ensuing pages,
there are hundreds, indeed thousands, of their colleagues who contribute to the core of Stifel today. Starting with Legg Mason Capital
Markets in 2005, through to Torreya Partners in early 2023, we believe that each of our business combinations has made us more
relevant in the market. We welcome new ideas, capabilities, and approaches that we can incorporate into our practices and provide
best-in-class service to our clients, both institutional and private wealth.
Victor J. Nesi
Co-President
James M. Zemlyak
Co-President
Stifel is a place where our associates can build a career. We have more than 300 associates who joined prior to 2005, who are still with
the firm and have experienced the growth firsthand. By embedding in our culture the commitment to welcoming and integrating new
team members, we accomplish our goal of making each new hire or business combination accretive to our current associates, our new
associates, and our shareholders.
A culture of inclusiveness and welcoming of new partners is self-perpetuating once it takes root. It has most definitely taken root at
Stifel. As a business whose people are its most valuable asset, this is an important ingredient. Stifel associates recognize that bringing
on a new partner or partners makes us collectively stronger and more relevant, as compared to taking away any single individual’s
opportunities. Never has that sentiment been more important than last year, where even though a challenging business environment,
we ended the year with 370 new associates. Investing and hiring throughout market cycles is what growth companies do, and Stifel is a
growth company. During turbulent times like now, it’s more important than ever to recognize the importance of each individual and the
functions that they perform in order to keep progressing.
As we look forward, we are unsure when the current environment will brighten. But we know it will – and when it does, Stifel and its
people will be stronger, more relevant, and better positioned to take advantage of it because of the fabric we have woven together
over the past two decades.
In closing, we couldn’t be more proud of the way our associates have kept their focus and worked tirelessly to achieve our second best
year ever – even against the backdrop of challenging markets. As we do each year, we want to thank each of our Stifel colleagues for
allowing us the privilege of leading them.
7
W H E R E
S U C C E S S
B U I L D I N G A P O W E R H O U S E T H R O U G H
T R A N S F O R M A T I V E A C Q U I S I T I O N S
Stifel is a growth company with a reputation as an opportunistic acquirer and integrator of complementary businesses.
In recent years, our numerous transformative acquisitions have helped us add talented professionals, services, products,
capabilities, and geographies. Each one has been accretive to earnings, a solid cultural fit, and a catalyst for Stifel’s
growth, scale, and stability. They have not only helped us become more relevant to our clients, they’ve served as a
catalyst for organic growth as well. Most of the top executives from these firms continue to serve Stifel to this day and
have played key roles in building Stifel into a premier wealth management and investment banking firm.
This transformative acquisition doubled the size of the firm and greatly enhanced our capabilities in a
number of areas, including investment banking, equity sales and trading, and fixed income sales and
trading. It also made Stifel the largest domestic equity research franchise off Wall Street, and we’ve
continued to expand our research capabilities ever since.
In Ryan Beck, Stifel gained approximately 400 advisors,
expanded the firm’s geographic footprint to the Mid-Atlantic
and Southeast, and immediately became one of the nation’s
largest full-service wealth management firms. In addition,
Ryan Beck’s capital markets capabilities further positioned
Stifel to become the industry’s premier middle-market
investment banking firm.
Added 50 financial
advisors
Stifel defied the trend of banks acquiring
brokerage firms by acquiring First Service
Financial Corp. and its First Service Bank
subsidiary, now known as Stifel Bank &
Trust. Becoming a bank holding company
enhanced our ability to serve our clients
by enabling our financial advisors to
offer their clients a full range of banking
products and services.
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 7
8
M E E T S
S U C C E S S
Stifel’s acquisition of Legg Mason Capital Markets was
In 2007, Ryan Beck and Stifel merged to form a
a transformative transaction that effectively launched Stifel
powerhouse wealth management and investment banking
in the institutional business. It not only enhanced our
firm. Ryan Beck’s more than 400 financial advisors
capabilities, it also fueled Stifel’s rapid growth over the last
transformed Stifel’s Private Client Group with a significant
18 years, as we strategically added more core components
East Coast presence. Many Ryan Beck associates continue
to our leading middle-market platform.
to serve Stifel clients over 15 years later! Clearly, these
Dick Himelfarb and Hugh Warns
Chairman, Investment Banking and
Global Head of Equities, Stifel
Joined from Legg Mason Capital Markets, 2005
were two firms meant to combine given the compatible
business lines and shared commitment to clients.
Ben Plotkin
Vice Chairman, Stifel Financial Corp.
Executive Vice President, Stifel and KBW
Joined from Ryan Beck & Co., 2007
With its strong venture capital relationships and expertise in growth
companies, Thomas Weisel Partners – a leading provider of capital markets
services to technology, healthcare, and energy companies – added key
sectors to Stifel’s investment banking business and further augmented our
industry-leading research franchise. In addition, TWP’s boutique wealth
management business further strengthened our Private Client Group.
Added 75 financial
advisors
Added 495
financial advisors
The acquisition of Stone & Youngberg
expanded Stifel’s public finance,
institutional sales and trading, and bond
underwriting practices. The combination
made Stifel one of the few investment
banks in the country providing issuers
the full scope of sales and underwriting
resources, including a large institutional
fixed income sales force and a national
private client business. The deal also
added more than 30 financial advisors to
our Private Client Group.
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
9
W H E R E
S U C C E S S
Stifel was a perfect partner for TWP. We added research
Ten years into the merger with Stifel, and KBW’s
and investment banking in our focused industry areas as well
market share in our core businesses has never
as management talent. Stifel’s balanced business model
been higher. The combined strength of the two
including the wealth management business dampens the
organizations has allowed KBW to chart a course for
volatility of the investment banking business, allowing us to
continuous growth while leveraging Stifel’s robust
focus on the long term, and gives us a larger product set for
global wealth management capabilities. Together,
our clients. Stifel’s entrepreneurial leadership has enabled our
we provide clients with all the tools necessary to be
people to flourish and build their careers.
successful in today’s ever-evolving marketplace.
Thomas Weisel and Brad Raymond
Senior Managing Director, Stifel
Director, Stifel Financial Corp. and
Global Head of Investment Banking, Stifel
Joined from Thomas Weisel Partners, 2010
Tom Michaud
President and Chief Executive Officer, KBW
Joined from KBW, 2013
Our strategic merger with KBW brought Stifel the industry’s premier advisor and research provider
in the financial services vertical. It enabled us to build on Stifel’s existing financial services business
through the addition of KBW’s leading financial institutions specialist sales force, extensive research
coverage, and top-ranked investment banking capabilities.
The addition of British investment bank Oriel
Securities allowed us to build out our platform across
all of our institutional businesses. Oriel combined
with Stifel’s existing resources to create a significant
middle-market investment banking group, with
broad research coverage, equity and debt sales and
trading, and investment banking services.
A leader in corporate
restructuring and recapitalization
Bolstered U.S. and
European institutional fixed
income sales and trading
Acquired by
Stifel Bank & Trust
Strengthened our
public finance
position in California
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10
M E E T S
S U C C E S S
Stifel’s client-centric and entrepreneurial culture, coupled
Finding like-minded, service-oriented firms in the
with an ability to get things done, became the perfect fit for
fixed income space has been key to expanding our
our highly experienced financial advisors and sophisticated
product set and deepening and broadening the extent
client base. Joining Stifel enhanced our ability to serve clients
of our client engagement, while also maintaining our
across the wealth spectrum, and Stifel gained advanced
identity as a client-centric partner.
capabilities in alternative investments, structured products,
and investment planning and strategy.
Tom Lee
Head of Investment Products and Services, Stifel
Joined from Barclays Wealth &
Investment Management, Americas, 2015
Eric Needleman
Global Head of Fixed Income Capital Markets, Stifel
Joined from Sterne Agee, 2015
Sterne Agee’s highly complementary fixed income platform enhanced
our credit and rates product offering for large financial institutions.
Its depository practice, which consisted of robust sales, trading, and
strategies groups, focused on the needs of community and regional
depository institutions. Sterne Agee’s retail brokerage business also
added 125+ financial advisors to our Private Client Group.
Barclays Wealth & Investment Management,
Americas made Stifel a premier wealth
management firm. The resources we acquired
from Barclays substantially enhanced the firm’s
ability to serve ultra-high-net worth clients,
and we welcomed nearly 100 new financial
advisors in several major wealth markets.
Broadened public finance
footprint in the Southeast
Formerly Legg Mason
Investment Counsel & Trust Co.
Leading global
placement agent
Augmented our European
debt capital markets
origination, sales, and
research capabilities
Added 40 financial
advisors, expanded
public finance footprint
in Indiana
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11
W H E R E
S U C C E S S
With the internationalization of trade and finance,
Joining forces with Stifel instantly gave our Canadian
we understand that companies and investors are
clients far better access to the critical U.S. capital markets,
looking for growth opportunities wherever they exist.
while our strength in mainstay sectors like energy and natural
Borders do not bind us. The combination of a full-
resources, and the burgeoning areas of cannabis and digital
service offering and our deep domain and product
assets, has been leveraged throughout the Stifel platform.
expertise allows us to provide solutions that meet the
evolving needs of our clients throughout the world.
Eithne O’Leary
President, Stifel Europe
Joined from Oriel Securities, 2014
Acquired by 1919
Investment Counsel
Added 57 financial advisors
Renamed Stifel Bank
Enhanced our public finance profile in
Colorado, Kansas, Missouri, and Utah
Leading investment bank
serving the technology
industry
Expanded capabilities to
serve credit union clients
Boutique interest rate risk
management firm
Harris Fricker
President, Stifel Canada
Joined from GMP Capital, 2019
This acquisition gave Stifel a pan-European platform with
deep local expertise and distribution power throughout
the continent’s major markets. MainFirst’s continental
European platform enabled Stifel to continue offering
corporate advisory, brokerage, and investment banking
services and clear and settle secondary equity and fixed
income trades post-Brexit, and solidified our standing
as a leader in European equity research. The acquisition
also added significant capital-raising capabilities to our
already robust equity issuance business.
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M E E T S
S U C C E S S
In Stifel, we found a partner with a shared focus on putting clients
first. Together, we’ve embraced a philosophy of providing value-added
services supported by strategy, analytics, and technology. Since the
acquisition, I’m proud to say we have furthered our position as the market
leader, and most trusted advisor, in the financial services sector.
Mark Medford
Vice Chairman, Stifel Financial Corp.
Joined from Vining Sparks, 2021
As a leading institutional fixed income brokerage
firm primarily dedicated to smaller community banks,
Vining Sparks added nearly 1,000 new active bank
clients to our platform. The combination of these
two similar client-centric institutional fixed income
businesses created an outstanding opportunity to
leverage Vining Sparks’ core relationships across
both the Stifel and KBW platforms to cement our
position as a market leader and trusted advisor in
the financial services sector.
GMP and First Energy – now Stifel Canada –
brought Stifel substantial expertise in equity
capital raising, mergers & acquisitions,
institutional sales and trading, and research
in Canada. Today, Stifel is a leader in the
small and mid cap segments of the Canadian
capital markets, and we consistently rank
among the top firms in Canada for both
mergers & acquisitions advisory and
common equity underwriting.
Future venture
investment business
Leading middle-
market European
investment bank
Leading investment
bank serving the life
sciences industry
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W H E R E
S U C C E S S
Mikaela Shiffrin, Olympic gold
medalist and winningest skier in
FIS World Cup history
P A R T N E R I N G W I T H S U C C E S S
U.S. SKI & SNOWBOARD
As part of our efforts to be the firm “Where Success Meets
Success,” this year we announced our latest means of
supporting up-and-coming talent on their road to success –
our partnership with U.S. Ski & Snowboard.
It’s a relationship that continues to grow and evolve.
It began in October, when we became title sponsor of the
Stifel U.S. Alpine Team, marking the biggest sponsorship in
our firm’s history.
We then expanded our partnership to include sponsorship of
a number of elite-level and development events, collectively
known as the Stifel U.S. Alpine Series, and later broadened
our sponsorships to include all of the ski teams under the
U.S. Ski & Snowboard brand – adding title sponsorships of the
Stifel U.S. Cross Country Ski Team, the Stifel U.S. Freestyle Ski
Team, and the Stifel U.S. Freeski Team.
In addition, Stifel and U.S. Ski & Snowboard are collaborating
on a career and financial education program designed to help
athletes save and invest.
ST. LOUIS CARDINALS
For our newest partnership, we are excited to announce that
we’ve entered into a multiyear deal to become the first-ever
jersey patch sponsor of Major League Baseball’s St. Louis
Cardinals. In addition to supporting our hometown team, this
partnership will provide Stifel with valuable brand exposure
to baseball fans across the country whenever their favorite
team plays the Cardinals. As the firm “Where Success Meets
Success,” we’re thrilled to be aligned with one of baseball’s
most storied franchises.
14
M E E T S
S U C C E S S
ALYSSA AND GISELE THOMPSON
Soccer phenoms Alyssa (18) and Gisele (17) are shaping
the future of the sport. Out of high school, Alyssa was
the No. 1 overall pick drafted by the National Women’s
Soccer League’s Angel City FC, making her the youngest
draft pick in NWSL history. Gisele currently competes
for the U.S. Under-20 Women’s Youth National Team and
a boys’ MLS Next team. Both Thompson sisters are the
first high school athletes to sign NIL deals with Nike.
We can’t wait to see what the future holds for Alyssa
and Gisele.
ST. LOUIS BLUES
The Cardinals aren’t the only professional sports team
whose jerseys bear the Stifel logo; in April 2022, we
entered into an agreement to serve as jersey sponsor
of the National Hockey League’s St. Louis Blues,
deepening a relationship that dates back two decades.
Photo Courtesy of Nike
Additional successful individuals and entities we’ve been fortunate to partner with in recent years:
• PGA TOUR Pros
• Haskins Awards
Harry Higgs, Kelly Kraft, and Greyson Sigg, Sponsor
Top Collegiate Golfers, Presenting Sponsor
• Collegiate Golfer/Stanford
Rachel Heck, Sponsor
• CBS Sports Reporter
Amanda Renner, Stifel Brand Ambassador
• ANNIKA Awards
Top Collegiate Golfers, Presenting Sponsor
• Andrea Bocelli World Tour
Presenting Sponsor
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15
S T I F E L
C O M M U N I T Y
At Stifel, giving back to the communities in which we live and work is central
to our philanthropic endeavors.
From formal programs to associate-led volunteerism, we strive to make a
positive impact on those around us.
Here are just a few of the many ways in which Stifel and our associates are
making a difference:
• Stifel Chairman and CEO Ron Kruszewski served as the 2022 Chair of
the Make-A-Wish Foundation of Missouri and Kansas Walk for Wishes,
and dozens of home office associates took part in the event, which
raised roughly $1 million to grant around 100 wishes to children
treated at St. Louis area hospitals.
• As we have each year since 2018, Stifel partnered with the Operation
Warm program, which provides warm winter coats and gloves to nearly
10,000 underserved children in 33 schools across the St. Louis region.
Over the past five years, 545 associates have participated in Operation
Warm events.
• To honor the memory of the 67 KBW associates who lost their lives on
9/11, Stifel associates in New York and St. Louis have packed thousands
of meals for local food banks as part of the 9/11 Day of Service.
• Once again, our Fabric of Society scholarship program awarded $2,000
scholarships to 75 graduating high school seniors in low-income,
high-minority communities around the country. Since 2014, Fabric
of Society has awarded 525 scholarships totaling more than $1 million.
16
Ron Kruszewski & Cooper
(2022 Make-A-Wish Recipient)
In 2022, we launched our Associate
Donation Match program, through which
Stifel matches associates’
charitable donations of
up to $1,000.
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
Vice President
Digital, Enterprise, and
Platform Marketing, Atlassian
Kathleen Brown
Partner
Manatt, Phelps & Phillips, LLP
Maryam Brown
President
SoCalGas
Michael W. Brown
Former Vice President and
Chief Financial Officer
Microsoft Corporation
Lisa Carnoy
Former Chief Financial Officer
Alix Partners
Robert E. Grady
Advisory Partner
Summit Partners
Jim Kavanaugh
Co-Founder and
Chief Executive Officer
World Wide Technology
Daniel J. Luedeman, Sr.
Chairman and
Chief Executive Officer
Concordance Academy of Leadership
Maura A. Markus
Former President and
Chief Operating Officer
Bank of the West
David A. Peacock
Chief Executive Officer
Advantage Solutions
Lead Independent Director
Thomas W. Weisel
Senior Managing Director
Michael J. Zimmerman
Vice Chairman
Continental Grain Company
As of April 26, 2023
S H A R E H O L D E R I N F O R M A T I O N
ANNUAL MEETING
Our 2023 Annual Meeting of Shareholders will be virtual-only, Wednesday, June 7, 2023, 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 28, 2023.
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:
SALES PRICE
2021
2022
$
High
68.94
72.20
71.16
78.60
$
Low
47.72
60.41
60.80
64.79
$
High
83.28
70.26
65.39
66.96
$
Low
60.35
54.74
51.73
49.31
CASH DIVIDENDS
2022
2021
$
0.15
0.15
0.15
0.15
$
0.30
0.30
0.30
0.30
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
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
2018
2019
2020
2021
2022
GAAP net income
Preferred dividends
GAAP net income available to common shareholders
Tax reform, net of tax
Litigation charges, net of tax
Acquisition revenues, net of tax
Acquisition charges, net of tax
Compensation
Other non-compensation
Non-GAAP net income
GAAP earnings per diluted common share 1
Adjustments 1
Non-GAAP earnings per diluted common share 1
$393,968
9,375
384,593
—
5,251
19
13,400
26,179
$429,442
$3.15
0.37
$3.52
$448,396
17,319
431,077
—
—
132
24,288
24,139
$479,636
$3.66
0.41
$4.07
$503,472
27,261
476,211
—
—
117
23,339
23,180
$522,847
$4.16
0.40
$4.56
$824,858
35,587
789,271
—
—
117
20,079
30,066
$839,533
$6.66
0.42
$7.08
$662,155
37,281
624,874
—
—
39
29,262
20,896
$675,071
$5.32
0.42
$5.74
1 Adjusted for December 2020 three-for-two stock split.
S T I F E L L O C A T I O N S
EUROPE
Public Finance
Private Client Group
Investment Banking
Institutional Sales Offices
(Equity & Fixed Income)
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