PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Stifel Financial Corp.'s unaudited consolidated financial statements for periods ending June 30, 2025, and December 31, 2024, along with detailed accounting policy notes [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) The Consolidated Statements of Financial Condition show a slight decrease in total assets and equity, with a minor increase in total liabilities, as of June 30, 2025 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $39,859,653 | $39,895,540 | | Total Liabilities | $34,262,668 | $34,208,770 | | Total Equity | $5,596,985 | $5,686,770 | - Cash and cash equivalents decreased from **$2.65 billion** at December 31, 2024, to **$1.86 billion** at June 30, 2025[8](index=8&type=chunk) - Bank deposits, the largest liability, decreased from **$29.10 billion** to **$28.67 billion**[8](index=8&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations indicate increased total revenues but significantly decreased net income and EPS for the six-month period due to higher non-interest expenses | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenues | $1,491,086 | $1,465,261 | $2,960,112 | $2,882,954 | | Net Revenues | $1,284,286 | $1,217,932 | $2,539,755 | $2,380,970 | | Net Income | $155,055 | $165,294 | $208,047 | $328,869 | | Net Income Available to Common Shareholders | $145,734 | $155,973 | $189,406 | $310,228 | | Basic EPS | $1.41 | $1.50 | $1.82 | $2.98 | | Diluted EPS | $1.34 | $1.41 | $1.73 | $2.82 | | Cash Dividends Declared per Common Share | $0.46 | $0.42 | $0.92 | $0.84 | - Total non-interest expenses increased by **8.0%** for the three months and **16.9%** for the six months ended June 30, 2025, significantly impacting net income[10](index=10&type=chunk) - Provision for credit losses increased by **181.9%** for the three months and **147.5%** for the six months ended June 30, 2025, reflecting higher reserves[10](index=10&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The Consolidated Statements of Comprehensive Income show improved other comprehensive income, driven by unrealized gains on available-for-sale securities and foreign currency adjustments, despite decreased net income | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $155,055 | $165,294 | $208,047 | $328,869 | | Total Other Comprehensive Income/(Loss), net of tax | $17,551 | $(607) | $41,438 | $(10,455) | | Comprehensive Income | $172,606 | $164,687 | $249,485 | $318,414 | - Changes in unrealized gains/(losses) on available-for-sale securities, net of tax, shifted from a loss of **$8.24 million** in H1 2024 to a gain of **$29.83 million** in H1 2025[13](index=13&type=chunk) - Foreign currency translation adjustment, net of tax, improved from a loss of **$2.22 million** in H1 2024 to a gain of **$11.61 million** in H1 2025[13](index=13&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) The Consolidated Statements of Changes in Shareholders' Equity reflect increased retained earnings from net income, but significant common stock repurchases led to an overall decrease in total equity | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Retained Earnings, beginning of period | $3,794,609 | $3,398,610 | | Net Income | $208,047 | $328,869 | | Common Dividends Declared | $(105,485) | $(97,420) | | Preferred Dividends Declared | $(18,641) | $(18,641) | | Treasury Stock, beginning of period | $(629,518) | $(636,699) | | Common Stock Repurchased | $(176,211) | $(78,307) | | Total Shareholders' Equity, end of period | $5,596,985 | $5,398,207 | - Common stock repurchases significantly increased to **$176.21 million** for the six months ended June 30, 2025, compared to **$78.31 million** in the prior year[18](index=18&type=chunk) - Accumulated other comprehensive loss improved from **$(75.64) million** at the beginning of the period to **$(34.20) million** at the end, driven by unrealized gains and foreign currency adjustments[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows show operating activities providing cash, but increased cash usage in investing and financing activities resulted in an overall decrease in cash and cash equivalents | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by/(Used in) Operating Activities | $396,282 | $(132,814) | | Net Cash Used in Investing Activities | $(586,478) | $(434,091) | | Net Cash Used in Financing Activities | $(573,552) | $(297,766) | | Decrease in Cash, Cash Equivalents, and Cash Segregated | $(752,140) | $(866,889) | | Cash, Cash Equivalents, and Cash Segregated at End of Period | $1,926,063 | $2,656,960 | - Operating activities provided **$396.28 million** in cash for the six months ended June 30, 2025, a substantial improvement from using **$132.81 million** in the prior period[20](index=20&type=chunk) - Investing activities used more cash, increasing from **$(434.09) million** in H1 2024 to **$(586.48) million** in H1 2025, primarily due to increased purchases of held-to-maturity securities and acquisitions[23](index=23&type=chunk) - Financing activities used significantly more cash, increasing from **$(297.77) million** in H1 2024 to **$(573.55) million** in H1 2025, driven by a decrease in bank deposits and higher common stock repurchases[23](index=23&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The Notes to Consolidated Financial Statements provide detailed explanations of accounting policies, financial instrument valuations, and specific financial activities, covering operations, fair value, and various financial instruments [NOTE 1 – Nature of Operations, Basis of Presentation, and Summary of Significant Accounting Policies](index=11&type=section&id=NOTE%201%20%E2%80%93%20Nature%20of%20Operations%2C%20Basis%20of%20Presentation%2C%20and%20Summary%20of%20Significant%20Accounting%20Policies) Stifel Financial Corp. operates as a diversified financial services company across the U.S., UK, Europe, and Canada, with operations in Global Wealth Management, Institutional Group, and Other segments - Stifel Financial Corp. is engaged in retail brokerage, securities trading, investment banking, investment advisory, and banking services across the U.S., UK, Europe, and Canada[25](index=25&type=chunk) - The company's operations are organized into three reportable segments: Global Wealth Management, Institutional Group, and Other[25](index=25&type=chunk) - Interim financial statements are unaudited and prepared in accordance with SEC rules, with all necessary normal, recurring adjustments made[27](index=27&type=chunk) [NOTE 2 – Summary of Significant Accounting Policies](index=11&type=section&id=NOTE%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This note refers to the full description of significant accounting policies in the 2024 Annual Report, highlighting the accounting for financial advisor loans and the allowance for doubtful accounts - Loans and advances to financial advisors are generally forgiven over a five- to ten-year period based on continued employment and performance standards[33](index=33&type=chunk) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Allowance for doubtful accounts | $29,500 | $31,700 | [NOTE 3 – Receivables From and Payables to Brokers, Dealers, and Clearing Organizations](index=13&type=section&id=NOTE%203%20%E2%80%93%20Receivables%20From%20and%20Payables%20to%20Brokers%2C%20Dealers%2C%20and%20Clearing%20Organizations) This note details the significant increase in both receivables from and payables to brokers, dealers, and clearing organizations, primarily driven by securities borrowing and lending activities | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Receivables from brokers, dealers, and clearing organizations | $637,057 | $486,465 | | Deposits paid for securities borrowed | $342,130 | $269,831 | | Payable to brokers, dealers, and clearing organizations | $447,632 | $215,249 | | Deposits received from securities loaned | $400,000 | $178,928 | - Receivables from brokers, dealers, and clearing organizations increased by approximately **31%** from December 31, 2024, to June 30, 2025[34](index=34&type=chunk) - Payables to brokers, dealers, and clearing organizations more than doubled, primarily due to a significant increase in deposits received from securities loaned[34](index=34&type=chunk) [NOTE 4 – Fair Value Measurements](index=13&type=section&id=NOTE%204%20%E2%80%93%20Fair%20Value%20Measurements) The company measures certain financial assets and liabilities at fair value, categorizing them into Level 1, 2, or 3 based on input observability, with total assets at fair value increasing to **$3.06 billion** | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total assets at fair value on a recurring basis | $3,055,879 | $2,941,710 | | Total liabilities at fair value on a recurring basis | $901,908 | $757,096 | - Level 3 financial instruments, which rely on unobservable inputs, include certain asset-backed securities, syndicated loans, auction-rate securities, and private company investments[40](index=40&type=chunk)[42](index=42&type=chunk)[50](index=50&type=chunk) - The fair value of held-to-maturity securities, not recorded at fair value on the balance sheet, was estimated at **$6.60 billion** at June 30, 2025, compared to a carrying value of **$6.58 billion**[62](index=62&type=chunk) [NOTE 5 – Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased](index=24&type=section&id=NOTE%205%20%E2%80%93%20Financial%20Instruments%20Owned%20and%20Financial%20Instruments%20Sold%2C%20But%20Not%20Yet%20Purchased) This note details a 15% increase in financial instruments owned, driven by agency mortgage-backed securities, and a significant increase in financial instruments sold, but not yet purchased | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Financial instruments owned | $1,343,513 | $1,169,008 | | Agency mortgage-backed securities (owned) | $476,953 | $262,629 | | Financial instruments sold, but not yet purchased | $819,555 | $646,271 | | U.S. government securities (sold, but not yet purchased) | $477,514 | $370,373 | - Financial instruments owned increased by **$174.5 million (14.9%)** from December 31, 2024, to June 30, 2025[74](index=74&type=chunk) - Financial instruments sold, but not yet purchased, increased by **$173.3 million (26.8%)** over the same period[74](index=74&type=chunk) [NOTE 6 – Available-for-Sale and Held-to-Maturity Securities](index=25&type=section&id=NOTE%206%20%E2%80%93%20Available-for-Sale%20and%20Held-to-Maturity%20Securities) Available-for-sale securities decreased slightly in fair value with significant unrealized losses, while held-to-maturity securities increased, predominantly maintaining high credit quality | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Available-for-sale securities (Fair Value) | $1,546,392 | $1,584,598 | | Held-to-maturity securities (Amortized Cost) | $6,584,925 | $6,524,954 | | Gross Unrealized Losses (AFS) | $(132,065) | $(170,647) | | Gross Unrealized Gains (HTM) | $20,747 | $26,498 | - At June 30, 2025, **227 AFS securities** had unrealized losses totaling **$132.1 million**, with **$131.5 million** of these losses on securities held for 12 months or longer[82](index=82&type=chunk) - The majority of held-to-maturity asset-backed securities (**over 99%**) were rated AAA or AA at June 30, 2025[83](index=83&type=chunk) [NOTE 7 – Bank Loans](index=28&type=section&id=NOTE%207%20%E2%80%93%20Bank%20Loans) Gross bank loans slightly decreased, while the provision for credit losses increased significantly, and past due and nonaccrual loans rose, despite most loans being collateralized and highly rated | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Gross bank loans | $20,822,285 | $20,879,745 | | Allowance for credit losses on loans | $(135,734) | $(139,308) | | Loans held for investment, net | $20,647,094 | $20,731,796 | | Provision for credit losses (3 months) | $7,857 | $6,832 | | Provision for credit losses (6 months) | $20,408 | $11,390 | - Residential real estate loans constitute the largest portion of the portfolio at **42.8%** at June 30, 2025[88](index=88&type=chunk) - Total past due loans (30+ days) increased from **$103.96 million** at December 31, 2024, to **$133.62 million** at June 30, 2025, with nonaccrual loans increasing from **$77.97 million** to **$106.73 million**[96](index=96&type=chunk)[97](index=97&type=chunk) [NOTE 8 – Goodwill and Intangible Assets](index=37&type=section&id=NOTE%208%20%E2%80%93%20Goodwill%20and%20Intangible%20Assets) Goodwill and intangible assets increased significantly due to recent acquisitions of B. Riley Financial's wealth management business and Bryan Garnier, allocated primarily to Global Wealth Management and Institutional Group segments | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Goodwill | $1,478,887 | $1,395,218 | | Intangible assets, net | $115,455 | $113,574 | | Goodwill (Global Wealth Management) | $352,397 | $335,009 | | Goodwill (Institutional Group) | $1,126,490 | $1,060,209 | - Goodwill increased by **$83.7 million**, and intangible assets increased by **$1.9 million**, primarily due to the acquisitions of B. Riley Financial's wealth management business and Bryan Garnier[109](index=109&type=chunk)[110](index=110&type=chunk) - Amortization expense related to intangible assets was **$10.9 million** for the six months ended June 30, 2025, compared to **$11.8 million** in the prior year[112](index=112&type=chunk) [NOTE 9 – Borrowings and Federal Home Loan Bank Advances](index=39&type=section&id=NOTE%209%20%E2%80%93%20Borrowings%20and%20Federal%20Home%20Loan%20Bank%20Advances) The company's short-term financing includes uncommitted secured lines and a committed unsecured credit facility, with no outstanding balances on these facilities or FHLB advances at June 30, 2025 - The company has **$880.0 million** in uncommitted secured lines of credit with four banks, with no outstanding balances at June 30, 2025[116](index=116&type=chunk) - A **$750.0 million** committed unsecured credit facility, maturing September 27, 2028, had no advances outstanding at June 30, 2025[119](index=119&type=chunk)[120](index=120&type=chunk) - The weighted average interest rates on Federal Home Loan advances were **4.59%** for the three months and **4.56%** for the six months ended June 30, 2025[117](index=117&type=chunk) [NOTE 10 – Senior Notes](index=40&type=section&id=NOTE%2010%20%E2%80%93%20Senior%20Notes) The company's senior notes total **$625.0 million** in aggregate principal, with a net carrying value of **$617.0 million** at June 30, 2025, and all maturities occurring after 2029 | Senior Notes (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | 4.00% senior notes, due 2030 | $400,000 | $400,000 | | 5.20% senior notes, due 2047 | $225,000 | $225,000 | | Senior notes, net | $617,030 | $616,618 | - All senior notes, totaling **$625.0 million**, have contractual maturities after 2029[121](index=121&type=chunk) [NOTE 11 – Bank Deposits](index=40&type=section&id=NOTE%2011%20%E2%80%93%20Bank%20Deposits) Bank deposits, a primary funding source, decreased slightly to **$28.7 billion** at June 30, 2025, with a lower weighted-average interest rate, and brokerage customers' deposits forming a significant portion | Deposit Type (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Demand deposits (interest-bearing) | $28,171,862 | $28,580,415 | | Demand deposits (non-interest-bearing) | $373,823 | $318,229 | | Certificates of deposit | $127,378 | $203,583 | | Total Deposits | $28,673,063 | $29,102,227 | - The weighted-average interest rate on deposits decreased from **3.22%** at December 31, 2024, to **2.67%** at June 30, 2025[122](index=122&type=chunk) - Brokerage customers' deposits were **$24.9 billion** at June 30, 2025, down from **$27.1 billion** at December 31, 2024[123](index=123&type=chunk) [NOTE 12 – Derivative Instruments and Hedging Activities](index=41&type=section&id=NOTE%2012%20%E2%80%93%20Derivative%20Instruments%20and%20Hedging%20Activities) The company manages interest rate risk with derivatives, maintaining a 'matched book' portfolio, with derivative assets, liabilities, and notional values decreasing from December 31, 2024, to June 30, 2025 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Derivative Assets | $82,341 | $110,814 | | Derivative Liabilities | $82,353 | $110,825 | | Notional Value of Interest Rate Contracts | $1,874,627 | $1,984,608 | - The notional value of interest rate contracts decreased by approximately **5.5%** from December 31, 2024, to June 30, 2025[125](index=125&type=chunk)[126](index=126&type=chunk) - The scheduled maturities of derivative instruments show **$312.95 million** within one year and **$490.39 million** in one to three years[125](index=125&type=chunk) [NOTE 13 – Disclosures About Offsetting Assets and Liabilities](index=42&type=section&id=NOTE%2013%20%E2%80%93%20Disclosures%20About%20Offsetting%20Assets%20and%20Liabilities) This note details financial assets and liabilities subject to master netting arrangements, showing net exposures of **$33.65 million** for assets and **$(56.71) million** for liabilities after considering available offsets and collateral | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Gross amounts of recognized assets | $1,062,001 | $909,621 | | Net amount (assets) | $33,653 | $46,900 | | Gross amounts of recognized liabilities | $(1,201,785) | $(869,923) | | Net amount (liabilities) | $(56,709) | $(74,482) | - The fair value of securities received as collateral for reverse repurchase agreements was **$636.0 million** at June 30, 2025[127](index=127&type=chunk) - The fair value of securities pledged as collateral for repurchase agreements was **$756.2 million** at June 30, 2025[133](index=133&type=chunk) [NOTE 14 – Commitments, Guarantees, and Contingencies](index=43&type=section&id=NOTE%2014%20%E2%80%93%20Commitments%2C%20Guarantees%2C%20and%20Contingencies) The company has various commitments and guarantees in the normal course of business, including underwriting, forward commitments for mortgage-backed securities, and significant credit extensions by Stifel Bancorp - The company enters into forward commitments to purchase agency mortgage-backed securities and hedges market interest rate risk with TBA security contracts[130](index=130&type=chunk) - Stifel Bancorp had outstanding commitments to originate loans aggregating **$299.7 million** and outstanding letters of credit totaling **$67.2 million** at June 30, 2025[198](index=198&type=chunk)[200](index=200&type=chunk) - Unused lines of credit to commercial and consumer borrowers aggregated **$5.8 billion** at June 30, 2025[201](index=201&type=chunk) [NOTE 15 – Legal Proceedings](index=45&type=section&id=NOTE%2015%20%E2%80%93%20Legal%20Proceedings) The company is involved in various legal proceedings, estimating a reasonably possible aggregate loss of approximately **$100.0 million** in excess of current reserves, including a **$132.5 million** FINRA arbitration award and class actions - The company estimates a reasonably possible aggregate loss of approximately **$100.0 million** in excess of current reserves for legal matters[136](index=136&type=chunk) - A FINRA arbitration panel entered an award of **$132.5 million** against Stifel's brokerage subsidiary, which the company believes is legally defective and excessive[140](index=140&type=chunk) - Multiple class actions have been filed alleging the company failed to pay a reasonable rate of interest on its cash sweep products[143](index=143&type=chunk) [NOTE 16 – Regulatory Capital Requirements](index=47&type=section&id=NOTE%2016%20%E2%80%93%20Regulatory%20Capital%20Requirements) The company and its subsidiaries operate under stringent regulatory capital requirements, with Stifel and its banking subsidiaries categorized as 'well capitalized' and exceeding minimum net capital requirements | Entity | Capital Metric | Actual Amount (in thousands) | Actual Ratio | Minimum for Capital Adequacy | Minimum for Well Capitalized | | :----- | :------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | | Stifel Financial Corp. | Common Equity Tier 1 Capital | $3,431,336 | 14.5% | 4.5% | 6.5% | | | Tier 1 Capital | $4,116,336 | 17.5% | 6.0% | 8.0% | | | Total Capital | $4,340,889 | 18.4% | 8.0% | 10.0% | | | Tier 1 Leverage | $4,116,336 | 10.8% | 4.0% | 5.0% | | Stifel Bank & Trust | Common Equity Tier 1 Capital | $1,337,013 | 11.5% | 4.5% | 6.5% | | | Tier 1 Capital | $1,337,013 | 11.5% | 6.0% | 8.0% | | | Total Capital | $1,454,352 | 12.5% | 8.0% | 10.0% | | | Tier 1 Leverage | $1,337,013 | 7.0% | 4.0% | 5.0% | | Stifel Bank | Common Equity Tier 1 Capital | $810,648 | 12.2% | 4.5% | 6.5% | | | Tier 1 Capital | $810,648 | 12.2% | 6.0% | 8.0% | | | Total Capital | $859,871 | 12.9% | 8.0% | 10.0% | | | Tier 1 Leverage | $810,648 | 7.1% | 4.0% | 5.0% | - Stifel's net capital was **$381.9 million** at June 30, 2025, which was **$356.6 million** in excess of its minimum required net capital[145](index=145&type=chunk) - All banking subsidiaries were categorized as 'well capitalized' at June 30, 2025[150](index=150&type=chunk) [NOTE 17 – Operating Leases](index=50&type=section&id=NOTE%2017%20%E2%80%93%20Operating%20Leases) Operating lease assets and liabilities increased slightly, with net lease costs rising, and the company recognized a **$32.1 million** gain from selling aircraft engines during the period | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Operating lease right-of-use assets, net | $814,952 | $809,174 | | Lease liabilities, net | $876,872 | $867,426 | | Net lease cost (3 months) | $36,340 | $34,812 | | Net lease cost (6 months) | $71,381 | $70,033 | - The company sold **6 aircraft engines** during the six months ended June 30, 2025, with a net book value of **$53.1 million**, recognizing a gain of **$32.1 million**[162](index=162&type=chunk) - The weighted-average remaining lease term for operating leases is **12.5 years**, with a weighted-average discount rate of **5.04%**[158](index=158&type=chunk) [NOTE 18 – Revenues from Contracts with Customers](index=51&type=section&id=NOTE%2018%20%E2%80%93%20Revenues%20from%20Contracts%20with%20Customers) Revenues from contracts with customers increased, driven by commissions, investment banking, and asset management, with the United States being the largest contributor, and revenue recognition policies detailed for each category | Revenue Type (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Commissions | $200,669 | $183,317 | $394,339 | $368,793 | | Investment banking | $233,460 | $233,281 | $471,402 | $447,230 | | Asset management | $403,608 | $380,757 | $813,149 | $748,233 | | Total revenue from contracts with customers | $838,918 | $798,917 | $1,681,408 | $1,567,054 | - Total revenue from contracts with customers increased by **5.0%** for the three months and **7.3%** for the six months ended June 30, 2025[164](index=164&type=chunk) - The United States accounted for **$787.82 million (93.9%)** of total revenue from contracts with customers for the three months ended June 30, 2025[172](index=172&type=chunk) [NOTE 19 – Interest Income and Interest Expense](index=55&type=section&id=NOTE%2019%20%E2%80%93%20Interest%20Income%20and%20Interest%20Expense) Interest income decreased due to lower rates, while interest expense also decreased, primarily from lower rates on bank deposits and senior notes, despite higher interest-bearing liabilities | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Interest Income | $477,056 | $498,152 | $952,688 | $1,004,980 | | Total Interest Expense | $206,800 | $247,329 | $420,357 | $501,984 | | Interest Income from Loans held for investment, net | $310,635 | $311,079 | $615,602 | $617,221 | | Interest Expense from Bank deposits | $187,533 | $220,287 | $380,655 | $450,351 | - Interest income decreased by **4.2%** for the three months and **5.2%** for the six months ended June 30, 2025[178](index=178&type=chunk) - Interest expense decreased by **16.4%** for the three months and **16.3%** for the six months ended June 30, 2025[178](index=178&type=chunk) [NOTE 20 – Employee Incentive, Deferred Compensation, and Retirement Plans](index=55&type=section&id=NOTE%2020%20%E2%80%93%20Employee%20Incentive%2C%20Deferred%20Compensation%2C%20and%20Retirement%20Plans) The company maintains various incentive and deferred compensation plans, with **$67.2 million** in stock-based compensation expense and **$857.3 million** in unrecognized compensation cost for deferred awards | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Stock-based compensation expense | $32,000 | $36,800 | $67,200 | $70,100 | | Debentures expense | $29,500 | $30,600 | $58,400 | $58,000 | | 401(k) Plan contributions | $12,000 | $4,400 | $15,100 | $9,200 | - At June 30, 2025, unrecognized compensation cost for deferred awards was approximately **$857.3 million**, with a weighted-average recognition period of **2.8 years**[185](index=185&type=chunk) - The total number of restricted stock units, PRSUs, and restricted stock awards outstanding was **12.4 million**, with **11.4 million** unvested, at June 30, 2025[184](index=184&type=chunk) [NOTE 21 – Off-Balance Sheet Credit Risk](index=57&type=section&id=NOTE%2021%20%E2%80%93%20Off-Balance%20Sheet%20Credit%20Risk) The company is exposed to off-balance sheet credit risk from customer and proprietary securities transactions, and Stifel Bancorp has significant unfunded lending commitments totaling **$5.8 billion** in unused lines of credit - At June 30, 2025, the fair value of securities accepted as collateral where the company is permitted to sell or repledge was **$2.1 billion**, with **$719.4 million** having been sold or repledged[194](index=194&type=chunk)[442](index=442&type=chunk) | Commitment Type (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Commitments to originate loans | $299,700 | $207,200 | | Standby letters of credit | $67,200 | $40,600 | | Unused lines of credit | $5,800,000 | $5,400,000 | - Expected credit losses for unfunded lending commitments were **$30.7 million** at both June 30, 2025, and December 31, 2024[202](index=202&type=chunk) [NOTE 22 – Segment Reporting](index=60&type=section&id=NOTE%2022%20%E2%80%93%20Segment%20Reporting) The Global Wealth Management and Institutional Group segments reported net revenue growth, while the 'Other' segment continued to report losses before income taxes for both periods | Segment (in thousands) | 3 Months Ended June 30, 2025 Net Revenues | 3 Months Ended June 30, 2024 Net Revenues | 6 Months Ended June 30, 2025 Net Revenues | 6 Months Ended June 30, 2024 Net Revenues | | :--------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Global Wealth Management | $845,631 | $801,135 | $1,696,190 | $1,591,635 | | Institutional Group | $419,779 | $390,721 | $804,708 | $742,097 | | Other | $18,876 | $26,076 | $38,857 | $47,238 | | Consolidated Net Revenues | $1,284,286 | $1,217,932 | $2,539,755 | $2,380,970 | - Global Wealth Management income before income taxes increased **2.3%** for the three months but decreased **26.7%** for the six months ended June 30, 2025[211](index=211&type=chunk) - Institutional Group income before income taxes increased **25.0%** for the three months and **3.0%** for the six months ended June 30, 2025[211](index=211&type=chunk) [NOTE 23 – Earnings Per Share ("EPS")](index=62&type=section&id=NOTE%2023%20%E2%80%93%20Earnings%20Per%20Share%20%28%22EPS%22%29) Basic and diluted EPS decreased for both the three and six months ended June 30, 2025, primarily due to lower net income available to common shareholders | Metric (in thousands, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income available to common shareholders | $145,734 | $155,973 | $189,406 | $310,228 | | Basic EPS | $1.41 | $1.50 | $1.82 | $2.98 | | Diluted EPS | $1.34 | $1.41 | $1.73 | $2.82 | | Weighted-average number of common shares outstanding (Basic) | 103,349 | 104,150 | 104,049 | 104,217 | - Diluted EPS decreased by **5.0%** for the three months and **38.7%** for the six months ended June 30, 2025[214](index=214&type=chunk) - Cash dividends declared per common share increased to **$0.46** for the three months and **$0.92** for the six months ended June 30, 2025[215](index=215&type=chunk) [NOTE 24 – Shareholders' Equity](index=62&type=section&id=NOTE%2024%20%E2%80%93%20Shareholders'%20Equity) The company's share repurchase program saw significantly increased activity, with **8.2 million** shares remaining authorized, and 1.9 million shares issued from treasury during the six-month period | Metric (in thousands, except average price) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Share repurchases | $83,038 | $17,597 | $176,211 | $78,306 | | Number of shares repurchased | 970 | 229 | 1,895 | 1,069 | | Average price | $85.62 | $76.97 | $93.00 | $73.28 | - The maximum number of shares authorized for repurchase under the plan was **8.2 million** at June 30, 2025[216](index=216&type=chunk) - **1.9 million shares** of common stock were issued from treasury during the six months ended June 30, 2025, primarily due to vesting and exercise of incentive stock awards[218](index=218&type=chunk) [NOTE 25 – Variable Interest Entities](index=63&type=section&id=NOTE%2025%20%E2%80%93%20Variable%20Interest%20Entities) The company consolidates VIEs where it is the primary beneficiary, such as those holding aircraft engines, and limits its maximum exposure to loss for non-consolidated VIEs to the carrying value of its investments | VIE Type (in thousands) | June 30, 2025 Aggregate Assets | June 30, 2025 Aggregate Liabilities | June 30, 2025 Maximum Exposure to Loss | | :---------------------- | :----------------------------- | :---------------------------------- | :------------------------------------- | | Securitization interests (consolidated) | $95,327 | $52,593 | N/A | | Debt and Equity Investments (non-consolidated) | $427,121 | $196,952 | $45,506 | - The company consolidated Turbine Engines Securitization Ltd. and Stifel Aviation Finance II, LLC, whose assets primarily consist of aircraft engines[221](index=221&type=chunk) - For non-consolidated VIEs, the maximum exposure to loss from debt and equity investments was **$45.51 million** at June 30, 2025[225](index=225&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting increased net revenues but decreased net income due to higher non-interest expenses, particularly legal-related provisions [Executive Summary](index=65&type=section&id=Executive%20Summary) Stifel Financial Corp. is a diversified financial services and bank holding company focused on growth through advisor recruitment, product diversification, and opportunistic acquisitions in the U.S., Europe, and Canada - Stifel Financial Corp. is a diversified financial services and bank holding company with operations in the U.S., Europe, and Canada[235](index=235&type=chunk)[238](index=238&type=chunk) - The company's growth strategy focuses on recruiting experienced financial advisors and product diversification in capital markets, including opportunistic acquisitions[237](index=237&type=chunk) - Recent acquisitions include a portion of B. Riley Financial, Inc.'s wealth management business (April 7, 2025) and Bryan Garnier, a European investment bank (June 2, 2025)[240](index=240&type=chunk)[241](index=241&type=chunk) [Results for the three and six months ended June 30, 2025](index=67&type=section&id=Results%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025) Net revenues increased for both the three and six months ended June 30, 2025, but net income available to common shareholders significantly decreased, particularly for the six-month period, due to higher non-interest expenses | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :------------------- | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Net Revenues | $1,284.3 | $1,217.9 | 5.4% | $2,539.8 | $2,381.0 | 6.7% | | Net Income Available to Common Shareholders | $145.7 | $156.0 | (6.6%) | $189.4 | $310.2 | (38.9%) | | Diluted EPS | $1.34 | $1.41 | (5.0%) | $1.73 | $2.82 | (38.7%) | - Revenue growth was primarily attributable to higher transactional revenues, asset management revenues, net interest income, and capital-raising revenues[244](index=244&type=chunk)[246](index=246&type=chunk) [Economic and Market Conditions](index=67&type=section&id=Economic%20and%20Market%20Conditions) The company operates in a challenging and unpredictable economic environment, with results highly correlated to U.S. equity and fixed income markets, and profitability sensitive to market activity - The company's results are highly correlated to general economic conditions and the direction of U.S. equity and fixed income markets[247](index=247&type=chunk) - Factors such as market volatility, interest rates, economic, political, and regulatory trends, and industry competition are unpredictable and beyond the company's control[247](index=247&type=chunk) - Profitability is adversely affected in periods of reduced financial market activity due to relatively fixed expenses like salaries and occupancy costs[247](index=247&type=chunk) [RESULTS OF OPERATIONS](index=68&type=section&id=RESULTS%20OF%20OPERATIONS) Overall results show increased net revenues driven by transactional, asset management, and investment banking activities, but net income declined significantly due to a surge in non-interest expenses, particularly legal-related provisions [Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024](index=68&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20Three%20Months%20Ended%20June%2030%2C%202024) Net revenues increased by **5.4%** to **$1.28 billion**, but income before income taxes and net income available to common shareholders decreased due to an **8.0%** rise in total non-interest expenses | Metric (in thousands) | June 30, 2025 | June 30, 2024 | % Change | | :-------------------- | :------------ | :------------ | :------- | | Net Revenues | $1,284,286 | $1,217,932 | 5.4 | | Income before income taxes | $213,820 | $226,894 | (5.8) | | Net income available to common shareholders | $145,734 | $155,973 | (6.6) | | Total non-interest expenses | $1,070,466 | $991,038 | 8.0 | | Compensation and benefits | $774,936 | $722,719 | 7.2 | | Provision for credit losses | $8,328 | $2,954 | 181.9 | - Transactional revenues (Commissions + Principal transactions) increased by **10.8%** to **$373.3 million**[249](index=249&type=chunk) - Other income decreased significantly by **77.2%** to **$3.7 million**[249](index=249&type=chunk) [Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024](index=69&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20with%20Six%20Months%20Ended%20June%2030%2C%202024) Net revenues increased by **6.7%** to **$2.54 billion**, but income before income taxes and net income available to common shareholders significantly decreased due to a **16.9%** increase in total non-interest expenses, including **$180.0 million** for legal matters | Metric (in thousands) | June 30, 2025 | June 30, 2024 | % Change | | :-------------------- | :------------ | :------------ | :------- | | Net Revenues | $2,539,755 | $2,380,970 | 6.7 | | Income before income taxes | $277,184 | $445,585 | (37.8) | | Net income available to common shareholders | $189,406 | $310,228 | (38.9) | | Total non-interest expenses | $2,262,571 | $1,935,385 | 16.9 | | Other operating expenses | $417,311 | $220,487 | 89.3 | - Transactional revenues increased by **7.1%** to **$708.6 million**, and asset management revenues increased by **8.7%** to **$813.1 million**[251](index=251&type=chunk) - The provision for income taxes decreased by **40.8%** due to lower income before taxes[251](index=251&type=chunk) [NET REVENUES](index=69&type=section&id=NET%20REVENUES) Net revenues increased, driven by strong transactional revenues and asset management, while investment banking remained relatively flat for the three-month period, and other income significantly decreased due to reduced aircraft engine leasing and lower investment gains | Revenue Category (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :------------------------------ | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Commissions | $200,669 | $183,317 | 9.5 | $394,339 | $368,793 | 6.9 | | Principal transactions | $172,603 | $153,574 | 12.4 | $314,263 | $292,588 | 7.4 | | Transactional revenues | $373,272 | $336,891 | 10.8 | $708,602 | $661,381 | 7.1 | | Investment banking | $233,460 | $233,281 | 0.1 | $471,402 | $447,230 | 5.4 | | Asset management | $403,608 | $380,757 | 6.0 | $813,149 | $748,233 | 8.7 | | Other income | $3,690 | $16,180 | (77.2) | $14,271 | $21,130 | (32.5) | - Capital-raising revenues increased by **4.2%** for the three months and **5.1%** for the six months, while advisory revenues decreased by **3.1%** for the three months but increased by **5.6%** for the six months[259](index=259&type=chunk)[260](index=260&type=chunk)[262](index=262&type=chunk) - The decrease in other income was primarily due to reduced rental income from aircraft engine leasing and lower investment gains[265](index=265&type=chunk) [NET INTEREST INCOME](index=73&type=section&id=NET%20INTEREST%20INCOME) Net interest income increased by **7.7%** to **$270.3 million** for the three months and **5.8%** to **$532.3 million** for the six months, driven by a decrease in interest expense that offset lower interest revenue | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Net Interest Income | $270,256 | $250,823 | 7.7 | $532,331 | $502,996 | 5.8 | | Total Interest Revenue | $477,056 | $498,152 | (4.2) | $952,688 | $1,004,980 | (5.2) | | Total Interest Expense | $206,800 | $247,329 | (16.4) | $420,357 | $501,984 | (16.3) | - Average interest-earning assets increased for both periods, but average interest rates decreased, leading to lower interest revenue[268](index=268&type=chunk)[269](index=269&type=chunk) - Average interest-bearing liabilities increased, but lower average interest rates resulted in decreased interest expense[270](index=270&type=chunk)[271](index=271&type=chunk) [NON-INTEREST EXPENSES](index=74&type=section&id=NON-INTEREST%20EXPENSES) Total non-interest expenses increased significantly, driven by higher compensation and benefits, a substantial rise in provision for credit losses, and a **$180.0 million** provision for legal-related matters in other operating expenses | Expense Category (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :------------------------------ | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Compensation and benefits | $774,936 | $722,719 | 7.2 | $1,507,156 | $1,402,414 | 7.5 | | Provision for credit losses | $8,328 | $2,954 | 181.9 | $20,348 | $8,222 | 147.5 | | Other operating expenses | $126,531 | $112,949 | 12.0 | $417,311 | $220,487 | 89.3 | | Total non-interest expenses | $1,070,466 | $991,038 | 8.0 | $2,262,571 | $1,935,385 | 16.9 | - Compensation and benefits as a percentage of net revenues increased to **60.3%** for the three months and **59.3%** for the six months ended June 30, 2025[274](index=274&type=chunk) - Other operating expenses for the six months ended June 30, 2025, included **$180.0 million** related to provisions for legal-related matters[281](index=281&type=chunk) [SEGMENT ANALYSIS](index=76&type=section&id=SEGMENT%20ANALYSIS) Segment performance shows net revenue growth in Global Wealth Management and Institutional Group, but Global Wealth Management's profit margin declined due to credit loss provisions and legal matters, while the 'Other' segment continued to report losses [Results of Operations – Global Wealth Management](index=78&type=section&id=Results%20of%20Operations%20%E2%80%93%20Global%20Wealth%20Management) The Global Wealth Management segment reported increased net revenues driven by asset management and net interest income, but income before income taxes decreased for the six-month period, and profit margins declined due to higher credit loss provisions and legal matters | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Net Revenues | $845,631 | $801,135 | 5.6 | $1,696,190 | $1,591,635 | 6.6 | | Income before income taxes | $306,056 | $299,173 | 2.3 | $432,461 | $589,921 | (26.7) | | Asset management revenues | $403,574 | $380,737 | 6.0 | $813,080 | $748,187 | 8.7 | | Provision for credit losses | $8,328 | $2,954 | 181.9 | $20,348 | $7,922 | 156.9 | - Client assets increased by **8.9%** to **$516.5 billion**, and fee-based client assets increased by **14.8%** to **$206.3 billion** at June 30, 2025, compared to June 30, 2024[297](index=297&type=chunk) - Profit margins for the segment decreased to **36.2%** for the three months and **25.5%** for the six months ended June 30, 2025, from **37.3%** and **37.1%** in the prior year, primarily due to higher credit loss provisions and legal matters[324](index=324&type=chunk) [Results of Operations – Institutional Group](index=87&type=section&id=Results%20of%20Operations%20%E2%80%93%20Institutional%20Group) The Institutional Group segment reported increased net revenues from transactional and investment banking activities, leading to improved income before income taxes, though the six-month profit margin was affected by higher fixed compensation in international operations | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Net Revenues | $419,779 | $390,721 | 7.4 | $804,708 | $742,097 | 8.4 | | Income before income taxes | $61,040 | $48,813 | 25.0 | $88,471 | $85,922 | 3.0 | | Transactional revenues | $190,606 | $159,592 | 19.4 | $339,541 | $302,329 | 12.3 | | Investment banking revenues | $227,236 | $227,501 | (0.1) | $459,270 | $437,170 | 5.1 | - Fixed income transactional revenues increased by **21.0%** for the three months and **11.8%** for the six months, driven by increased activity in securitized products[332](index=332&type=chunk) - Compensation and benefits expense increased by **7.8%** for the three months and **12.2%** for the six months, driven by higher variable compensation[343](index=343&type=chunk) [Results of Operations – Other Segment](index=92&type=section&id=Results%20of%20Operations%20%E2%80%93%20Other%20Segment) The 'Other' segment reported increased losses before income taxes, primarily due to higher provisions for legal and regulatory matters, increased acquisition-related expenses, and severance costs | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Net revenues | $18,876 | $26,076 | (27.6%) | $38,857 | $47,238 | (17.7%) | | Loss before income taxes | $(153,276) | $(121,092) | 26.6% | $(243,748) | $(230,258) | 5.9% | | Total non-interest expenses | $172,152 | $147,168 | 17.0 | $282,605 | $277,496 | 1.8 | | Acquisition-related non-interest expenses | $47,300 | $23,800 | 99.1 | $60,000 | $35,900 | 67.0 | - Core business-related compensation and benefits decreased, while acquisition-related compensation and benefits increased significantly[351](index=351&type=chunk) - The increase in expenses is primarily attributable to increased provisions for legal and regulatory matters and severance costs[351](index=351&type=chunk) [Analysis of Financial Condition](index=93&type=section&id=Analysis%20of%20Financial%20Condition) Total assets slightly decreased to **$39.9 billion**, with bank deposits as the largest liability, and the company maintained **$12.6 billion** in cash or readily convertible assets - Total assets were **$39.9 billion** at June 30, 2025, a **0.1%** decrease from December 31, 2024[354](index=354&type=chunk) - Key liabilities included **$28.7 billion** in bank deposits, **$579.2 million** in payables to customers, and **$801.9 million** in accounts payable and accrued expenses[355](index=355&type=chunk) - The company had **$12.6 billion** of cash or assets readily convertible into cash at June 30, 2025[355](index=355&type=chunk) [Cash Flow](index=93&type=section&id=Cash%20Flow) Cash and cash equivalents decreased by **$790.6 million** to **$1.9 billion**, with operating activities providing cash, while investing and financing activities used significant amounts - Cash and cash equivalents decreased by **$790.6 million** to **$1.9 billion** at June 30, 2025[356](index=356&type=chunk) - Operating activities provided **$396.3 million** in cash[356](index=356&type=chunk) - Investing activities used **$586.5 million**, and financing activities used **$573.6 million**[356](index=356&type=chunk) [Liquidity and Capital Resources](index=93&type=section&id=Liquidity%20and%20Capital%20Resources) The company prioritizes liquidity and capital management through diversified funding, daily monitoring, and stress testing, maintaining adequate funding across various market conditions [Liquidity Available From Subsidiaries](index=94&type=section&id=Liquidity%20Available%20From%20Subsidiaries) Liquidity is primarily available from Stifel (broker-dealer) and Stifel Bancorp, both maintaining capital significantly above regulatory minimums and subject to dividend limitations - Stifel's excess net capital exceeded the minimum requirement at June 30, 2025[364](index=364&type=chunk) - Stifel Bancorp can pay dividends to the parent company without prior approval if it maintains targeted capital to risk-weighted asset ratios[365](index=365&type=chunk) [Capital Management](index=94&type=section&id=Capital%20Management) The company has an ongoing Board authorization to repurchase common stock, with **8.2 million** shares remaining, used to manage equity capital, support business growth, and meet employee benefit plan obligations - The company has an ongoing authorization to repurchase common stock, with **8.2 million** shares remaining at June 30, 2025[367](index=367&type=chunk) - The share repurchase program is utilized to manage equity capital, support business growth, and meet employee benefit plan obligations[367](index=367&type=chunk) [Liquidity Risk Management](index=94&type=section&id=Liquidity%20Risk%20Management) Liquidity risk is managed through diversified funding, daily monitoring, and stress testing at both firmwide and subsidiary levels, ensuring the ability to fund operations under various market pressures - Liquidity risk is managed through diversification of funding sources, daily monitoring of liquidity needs, and stress testing[368](index=368&type=chunk)[373](index=373&type=chunk)[374](index=374&type=chunk) - Firmwide liquidity stress tests measure outflows over a 30-day horizon under idiosyncratic and macro-economic stress events[375](index=375&type=chunk) - Stifel Bancorp's highly liquid investments comprised approximately **14%** of its assets at June 30, 2025, well in excess of its internal target[378](index=378&type=chunk) [Funding Sources](index=98&type=section&id=Funding%20Sources) The company diversifies its funding sources, with deposits being the largest at **$28.7 billion**, primarily from brokerage clients, supplemented by credit facilities and access to Federal Home Loan Bank advances - Deposits are the largest funding source, totaling **$28.7 billion** at June 30, 2025, with **$24.9 billion** from brokerage clients[386](index=386&type=chunk)[387](index=387&type=chunk) - The company held **$1.9 billion** in cash and cash equivalents and **$1.55 billion** in available-for-sale investment securities at June 30, 2025[383](index=383&type=chunk)[384](index=384&type=chunk) - Stifel Bancorp has borrowing capacity of **$5.9 billion** with the Federal Home Loan Bank and **$5.2 billion** with the Fed's discount window[395](index=395&type=chunk) [Credit Rating](index=99&type=section&id=Credit%20Rating) The company's credit rating depends on various factors, and a reduction could adversely affect liquidity and borrowing costs, though the company believes its liquid assets will meet future financing needs - Credit rating depends on industry dynamics, operating results, capital structure, risk management, and competitive position[402](index=402&type=chunk) - A reduction in credit rating could adversely affect liquidity, increase borrowing costs, and limit access to capital markets[403](index=403&type=chunk) [Use of Capital Resources](index=101&type=section&id=Use%20of%20Capital%20Resources) The company utilized **$127.9 million** in upfront notes for financial advisor transition pay and uses deferred awards as part of its retention program, with recent acquisitions funded by cash from operations - The company paid **$127.9 million** in upfront notes for financial advisor transition pay during the six months ended June 30, 2025[405](index=405&type=chunk) - Unrecognized compensation cost for deferred awards was approximately **$857.3 million** at June 30, 2025, expected to be recognized over **2.8 years**[408](index=408&type=chunk) - Acquisitions of B. Riley Financial's wealth management business and Bryan Garnier were funded with cash from operations[411](index=411&type=chunk)[412](index=412&type=chunk) [Net Capital Requirements](index=101&type=section&id=Net%20Capital%20Requirements) The company's broker-dealer and banking subsidiaries operate in a highly regulated environment, consistently exceeding capital adequacy requirements and maintaining a well-capitalized status - Stifel's net capital was **$381.9 million** at June 30, 2025, exceeding its minimum required net capital by **$356.6 million**[416](index=416&type=chunk) - All broker-dealer and banking subsidiaries consistently operated in excess of their capital adequacy requirements and were considered well-capitalized[415](index=415&type=chunk)[416](index=416&type=chunk) [Critical Accounting Policies and Estimates](index=103&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies and estimates, including financial instrument valuation, contingencies, and credit losses, involve significant judgment and are regularly evaluated with no material changes - Critical accounting policies and estimates include valuation of financial instruments, contingencies, allowance for credit losses, income taxes, and goodwill and intangible assets[419](index=419&type=chunk)[422](index=422&type=chunk) - Assumptions, judgments, and estimates are based on historical experience and evaluated regularly, with no material updates to critical accounting policies and estimates[418](index=418&type=chunk)[419](index=419&type=chunk) [Recent

Financial Data and Key Metrics Changes - The company reported net revenue of $1.28 billion for the second quarter, marking a 6% year-over-year growth, with core EPS of $1.71, the best second quarter in its history, and a return on tangible common equity of 22% [5][10][11] - The compensation ratio was 58%, consistent with the high end of the full-year guidance, while the operating pretax margin was 20.3% [10][24][31] Business Line Data and Key Metrics Changes - Global Wealth Management achieved record revenue of $846 million, with a pretax margin of 36%, and added 82 new advisers during the quarter [25][26] - Institutional revenue increased by 7% year-over-year to $420 million, with investment banking revenues totaling $233 million, driven by capital raising activities [15][23] Market Data and Key Metrics Changes - The S&P 500 rallied by 1,000 points since the last earnings call, leading to record client assets in wealth management and a rebound in M&A and capital markets activity [5][39] - The company noted a significant increase in fixed income underwriting revenue, which rose by 18% sequentially, driven by public finance activity [15][24] Company Strategy and Development Direction - The company completed the acquisition of Bryan Garnier, a European boutique investment bank, to reposition its European operations towards advisory and investment banking [9][20] - The focus is shifting from sales and trading to advisory and investment banking in Europe, aiming to improve profitability and efficiency [20][114] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2025, citing improved market conditions and investor sentiment, with expectations for continued growth in net new assets and recruiting [5][36][39] - The management acknowledged potential market volatility but emphasized a disciplined approach to capital allocation and client service [38][39] Other Important Information - The company is leveraging AI to enhance productivity and decision-making, viewing it as a tool to support rather than replace human professionals [21][106] - The company anticipates a full-year effective tax rate in the range of 20% to 22% [36][32] Q&A Session Summary Question: What are the expectations for KBW in terms of bank M&A activity? - Management noted that the environment for M&A has improved due to reduced regulatory uncertainty and the need for banks to consolidate to compete effectively [46][47] Question: Can you elaborate on the net new assets and advisor recruiting? - Management highlighted strong recruiting efforts and a positive trend in net new assets, indicating that the growth is driven by a robust platform and culture [51][92] Question: What is the outlook for net interest income (NII)? - Management indicated that NII is expected to remain stable, with potential for growth depending on loan growth and deposit mix shifts [59][63] Question: How does the company view the recent performance of bank share prices in relation to M&A activity? - Management suggested that share price fluctuations are deal-specific and do not undermine the long-term rationale for bank consolidation [70][73] Question: What are the priorities for capital allocation moving forward? - Management stated that the focus will be on bank growth while also considering stock buybacks, depending on market conditions [96][98] Question: How is the company prioritizing AI initiatives? - Management emphasized the importance of training and implementing AI to enhance productivity across various workflows, while ensuring human oversight remains integral [106][110] Question: What is the focus for the European operations moving forward? - Management indicated a strategic shift towards advisory and investment banking in Europe, deemphasizing sales and trading to improve efficiency and profitability [114]

Financial Data and Key Metrics Changes - The company reported net revenue of $1.28 billion for Q2 2025, marking a 6% year-over-year growth and the best second quarter in its history [5][9] - Core EPS was $1.71, up 7% from the previous year, with a return on tangible common equity of 22% [5][10] - The compensation ratio was 58%, consistent with the high end of the full-year guidance [10][23] Business Line Data and Key Metrics Changes - Global Wealth Management achieved record revenue of $846 million, with a pretax margin of 36% [24] - Institutional business revenue increased by 7% year-over-year to $420 million, driven by strong fixed income revenue and a late-quarter pickup in investment banking [14][19] - Investment banking revenue totaled $233 million, exceeding guidance due to six transactions closing at the end of the quarter [22] Market Data and Key Metrics Changes - The S&P 500 rallied by 1,000 points since the last earnings call, positively impacting client assets in wealth management and M&A activity [5] - The company ended the quarter with record total client assets of $517 billion and fee-based assets of $206 billion [12] Company Strategy and Development Direction - The company completed the acquisition of Bryan Garnier, a European boutique investment bank, to enhance its advisory and investment banking focus in Europe [8] - The strategic shift in Europe involves deemphasizing sales and trading while expanding advisory services, aiming for improved long-term profitability [8][105] - The company is focused on generating strong risk-adjusted returns and reinvesting in its business, with a strong emphasis on both organic and inorganic growth opportunities [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a strong second half of 2025, citing improved market conditions and investor sentiment [38] - The company anticipates continued growth in net new assets, supported by strong recruiting activity [39] - Management acknowledged potential market volatility but emphasized a disciplined approach to capital allocation and client service [36][38] Other Important Information - The company added 82 new advisers in the quarter, the strongest recruiting quarter since 2015 [7][24] - Non-performing asset ratio stands at 51 basis points, indicating strong credit metrics [28] - The company incurred $28 million in severance and restructuring charges related to its European operations [31] Q&A Session Summary Question: What are the expectations for KBW in terms of bank M&A activity? - Management noted that improved market conditions and the need for banks to consolidate will bode well for M&A activity, emphasizing the favorable environment for strategic deals [44][46] Question: Can we expect further acceleration in net new assets? - Management indicated that while recruiting is strong, the timing of asset inflows can vary, but they are optimistic about continued growth in net new assets [49][51] Question: What is the outlook for net interest income (NII)? - Management confirmed that the NII guidance remains unchanged, with potential for growth driven by loan growth and favorable deposit mix shifts [55][59] Question: How will AI initiatives impact profitability and efficiency? - Management highlighted that AI is viewed as a tool to enhance productivity rather than replace human roles, with a focus on improving workflows and efficiency [78][80] Question: What is the focus for the European operations moving forward? - The company plans to shift focus from sales and trading to advisory and investment banking in Europe, aiming for improved efficiency and profitability [105]

Financial Performance - The company's net revenues for the second quarter of 2025 were $1,284 million[4], a 6% increase year-over-year[6] - Net income available to common shareholders was $186 million[6], a 5% increase year-over-year[6] - Diluted EPS was $1.71[6], a 7% increase year-over-year[6] Wealth Management - Global Wealth Management net revenue reached $846 million in the second quarter of 2025[33], up 6% year-over-year[33] - Total client assets in Global Wealth Management were $516,532 million[35], a 9% increase year-over-year[35] - Fee-based client assets in Global Wealth Management were $206,319 million[35], a 15% increase year-over-year[35] Institutional Business - Total Institutional Group Revenue was $420 million[17], a 7% increase year-over-year[17] - Transactional revenue within the Institutional Group was $191 million[17], a 19% increase year-over-year[17] - Fixed Income revenue within the Institutional Group was $129 million[17], a 21% increase year-over-year[17] Capital and Expenses - The compensation ratio was 58%[6], consistent with the second quarter of 2024[6] - Pre-tax income was $261 million[49], a 4% increase year-over-year[49] - The company repurchased 970,000 shares in the second quarter of 2025[59]

Stifel Financial (SF) came out with quarterly earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.65 per share. This compares to earnings of $1.6 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +3.64%. A quarter ago, it was expected that this brokerage and investment banking firm would post earnings of $1.61 per share when it actually produced earnings of $0.49, delivering a surprise of -69.57%. Over the ...

Exhibit 99.2 Second Quarter 2025 Earnings Results | (Unaudited, 000s, except | | | | Three Months Ended | | | | Six Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | per share information) | | 6/30/2025 | 6/30/2024 | % Change | 3/31/2025 | % Change | 6/30/2025 | 6/30/2024 | % Change | | Revenues: | | | | | | | | | | | Commissions | | $ 200,669 | $ 183,317 | 9.5% | $ 193,670 | 3.6% | $ 394,339 | $ 368,793 | 6.9% | | Principal transactions | | 172,603 | 153,574 | 12.4% | 141,660 ...

ST. LOUIS, July 30, 2025 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.3 billion for the three months ended June 30, 2025, compared with $1.2 billion a year ago. Net income available to common shareholders was $145.7 million, or $1.34 per diluted common share, compared with $156.0 million, or $1.41 per diluted common share for the second quarter of 2024. Non-GAAP net income available to common shareholders was $185.6 million, or $1.71 per diluted common share for th ...

Group 1: Gold Market Performance - Gold has significantly outperformed the S&P 500 in 2025, with SPDR Gold Trust (GLD) gaining 27% compared to 8% for SPDR S&P 500 ETF Trust (SPY) [1] - The current environment of global instability and skepticism around fiat currencies has led to increased demand for gold as a safe-haven asset [1] Group 2: Drivers of Gold's Strength - Central bank demand, particularly from BRICS nations and emerging economies, is a key driver of gold's strength, contributing to record levels of sovereign gold purchases [2] - Geopolitical tensions, including the Russia-Ukraine war and U.S.-China relations, are further supporting gold's appeal as a hedge against instability [3][4] Group 3: Gold Miners' Profitability - Analysts forecast record profit margins for gold producers in Q2, with average all-in sustaining cost (AISC) margins of approximately $1,740 per ounce for senior producers and $1,535 per ounce for mid-tier producers, reflecting quarterly gains of 28% and 20% respectively [5] - Despite ongoing cost pressures, mining companies are benefiting from stabilizing inflation and declining fuel prices, which have eased operating costs [6] Group 4: Future Outlook for Gold Prices - The sharp rally in gold prices, which increased by over $400 on average during Q2, is expected to drive higher profitability and set the stage for record-breaking margins across the sector [7] - Technical indicators suggest a bullish outlook for gold prices, with the 50-day moving average at 3344.9 and the 200-day moving average at 3,028.2 [9] Group 5: Investment Opportunities - Gold ETFs and mining ETFs present attractive entry points for investors, with several gold mining ETFs recently hitting 52-week highs [11]

Core Viewpoint - Stifel Financial Corp. is set to release its second quarter financial results on July 30, 2025, and will host a conference call to discuss these results [1][2]. Group 1: Financial Results Announcement - Stifel Financial Corp. will announce its second quarter financial results before the market opens on July 30, 2025 [1]. - A conference call will be held at 9:30 a.m. Eastern time on the same day to review the results [1]. - The conference call may include forward-looking statements [1]. Group 2: Conference Call Details - Interested parties can listen to the call by dialing (866) 409-1555 and referencing participant ID 2769458 [2]. - A live audio webcast and a presentation highlighting the company's results will be available on Stifel's website [2]. - A replay of the broadcast will be accessible approximately one hour after the call concludes [2]. Group 3: Company Overview - Stifel Financial Corp. is a financial services holding company based in St. Louis, Missouri, operating through several wholly owned subsidiaries [3]. - The company provides a range of services including securities brokerage, investment banking, trading, investment advisory, and related financial services [3]. - Stifel serves clients in the U.S., Canada, the U.K., and Europe through various broker-dealer affiliates and offers consumer and commercial lending solutions [3].

Core Insights - Stifel Financial Corp. has been ranked No. 1 in employee advisor satisfaction among wealth management firms for the third consecutive year according to the J.D. Power 2025 U.S. Financial Advisor Satisfaction Study [1][2] - The overall score for Stifel was 819 out of 1,000, which is 214 points higher than the employee segment average and an increase of 52 points from the previous year [2] - Stifel also ranked first in five individual categories: compensation, leadership and culture, operational support, products and marketing, and technology [2][3] Company Overview - Stifel Financial Corp. is a financial services holding company based in St. Louis, Missouri, providing banking, securities, and financial services through various wholly owned subsidiaries [4] - The company serves broker-dealer clients in the U.S. and Europe, offering services such as securities brokerage, investment banking, trading, and investment advisory [4] - As of June 30, 2025, Stifel has approximately 2,340 advisors managing around $517 billion in client assets [3]