Wolfe Research Wealth Symposium November 13, 2025 Disclaimer Forward-Looking Statements This presentation may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, "SF" or the "Company"). T ...

Core Points - Stifel Financial Corp. will participate in the Wolfe Research Wealth Symposium on November 13, 2025, with Chairman and CEO Ron Kruszewski scheduled to present at 1:15 p.m. Eastern time [1] - A live audio webcast and presentation materials will be available on the company's Investor Relations website, with an audio replay accessible for 30 days post-presentation [2] Company Information - 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 to various clients including individual investors and municipalities [3] - Stifel Bank and its affiliates offer consumer and commercial banking solutions, as well as trust services through Stifel Trust Company [3] Investor Relations - Joel Jeffrey serves as the Senior Vice President for Investor Relations, with direct contact available at (212) 271-3610 and via email at investorrelations@stifel.com [4]

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Financial Performance - For the three months ended September 30, 2025, net revenues increased 16.7% to $1.4 billion from $1.2 billion during the comparable period in 2024[245]. - Net income available to common shareholders for the three months ended September 30, 2025, increased 35.4% to $202.1 million, or $1.84 per diluted common share[245]. - For the nine months ended September 30, 2025, net revenues increased 10.1% to $4.0 billion compared to $3.6 billion during the comparable period in 2024[246]. - Net income available to common shareholders for the nine months ended September 30, 2025, decreased 14.8% to $391.5 million, or $3.56 per diluted common share[246]. - For the nine months ended September 30, 2025, total revenues increased by 5.4% to $4.59 billion from $4.36 billion in the comparable period in 2024[253]. - Net revenues for the nine months ended September 30, 2025, rose by 10.1% to $3.97 billion compared to $3.61 billion in the same period in 2024[253]. Revenue Breakdown - Commission revenues for the nine months ended September 30, 2025, increased by 8.7% to $600.4 million from $552.2 million in the comparable period in 2024, driven by higher trading volumes[256]. - Principal transaction revenues for the nine months ended September 30, 2025, rose by 14.5% to $492.1 million from $429.7 million in the same period in 2024, attributed to increased client activity[258]. - Investment banking revenues for the nine months ended September 30, 2025, increased by 15.1% to $794.9 million from $690.4 million in the comparable period in 2024[261]. - Asset management revenues for the nine months ended September 30, 2025, grew by 10.1% to $1.24 billion from $1.13 billion in the same period in 2024[265]. Expenses and Costs - Compensation and benefits comprised 58.8% of total net revenues for the three months ended September 30, 2025[252]. - Total non-interest expenses for the nine months ended September 30, 2025, increased by 15.7% to $3.41 billion from $2.94 billion in the same period in 2024[253]. - Total non-interest expenses for the three months ended September 30, 2025, increased 13.4% to $1.14 billion from $1.01 billion during the comparable period in 2024[274]. - Compensation and benefits expense increased 17.0% to $839.8 million for the three months ended September 30, 2025, from $718.1 million during the comparable period in 2024[275]. Interest and Revenue - For the three months ended September 30, 2025, net interest income increased 6.4% to $276.3 million from $259.6 million during the comparable period in 2024[269]. - Interest revenue for the three months ended September 30, 2025, decreased 5.7% to $481.5 million from $510.8 million in the comparable period in 2024[270]. - Interest expense decreased by 18.3% to $205.2 million for the three months ended September 30, 2025[252]. - For the nine months ended September 30, 2025, interest expense decreased 16.9% to $625.5 million from $753.2 million in the comparable period in 2024[273]. Acquisitions - The company completed the acquisition of a portion of B. Riley Financial, Inc.'s traditional wealth management business, adding 36 advisors with approximately $4 billion in assets under management[241]. - The company also acquired Bryan, Garnier & Co., an independent full-service investment bank focused on European technology and healthcare companies[242]. Client Assets and Deposits - Client assets as of September 30, 2025, reached $544.0 billion, a 9.6% increase from $496.3 billion in the comparable period in 2024[298]. - Total deposits rose to $30.1 billion as of September 30, 2025, compared to $29.1 billion at December 31, 2024, marking a 3.4% increase[386]. Risk Management - The company actively manages various risks, including market, credit, capital and liquidity, operational, and regulatory risks, which are critical to its soundness and profitability[427]. - The Risk Management Committee of the Board of Directors conducts periodic reviews and discussions with management regarding risk assessment and management processes[428]. - Market risk is inherent to the company's financial instruments, which include tax-exempt and taxable debt obligations, U.S. treasury bills, and corporate obligations[429].

Core Insights - The article highlights the integration of modern logistics with the flower industry in Yunnan, showcasing how Yunnan SF Express has developed a robust logistics network to facilitate the transportation of fresh flowers from the region to various markets across China and internationally [1][10]. Industry Overview - Since the first gladiolus was planted in 1983, the flower market in Yunnan has grown to become Asia's largest and the world's second-largest, with a stable planting area of approximately 1.9 million acres and an industry output value of 148 billion yuan [3]. - The fresh cut flower production in Yunnan reaches 20 billion stems, accounting for 75% of the national market share, with over 1,600 varieties being shipped nationwide [3]. Infrastructure Development - Yunnan SF Express has established a specialized cold chain distribution center in Dou Nan, covering 7,900 square meters, which serves as a professional departure port for Yunnan flowers [4]. - The center features five high-speed sorting lines capable of processing 20,800 flower packages per hour, with a daily handling capacity of 125,000 packages [4]. Transportation Network - The company has developed a multi-dimensional transportation network combining air, high-speed rail, and cold chain logistics, with a daily capacity exceeding 900 tons [5]. - The cold chain transport maintains a temperature range of 2-8°C to ensure flowers remain fresh, with over 50% of cold chain shipments achieving next-day delivery [6]. Operational Efficiency - The logistics operations are synchronized with the flower market's trading schedule, which occurs primarily at night, allowing for efficient processing and dispatch of flowers [8]. - The company has implemented a digital operating system for real-time monitoring of the entire logistics process, enhancing efficiency and responsiveness to any issues [5][10]. Service Enhancement - Yunnan SF Express offers comprehensive services to meet various market demands, including e-commerce, bulk purchases, and customized export solutions, facilitating the global reach of Yunnan flowers [10][12]. - The collaboration with leading flower streaming companies has created a seamless connection between storage, live streaming, and shipping, optimizing the supply chain [12]. Market Impact - The daily shipment volume of flowers has increased from 2 tons to 260 tons, with a total annual shipment volume of 155,000 tons in 2024, demonstrating significant growth in logistics capabilities [12][14]. - The integration of logistics and agriculture has not only reduced costs for flower businesses but also improved delivery times and product quality, leading to higher customer satisfaction and increased profits [12][14].

Core Insights - Stifel Financial has settled three arbitration claims for nearly $3.4 million related to a former broker's sales of structured notes [1] - The firm is facing ongoing legal challenges, including a significant FINRA arbitration award of nearly $133 million, which Stifel is contesting [2] - There are 17 additional pending cases against Stifel, all involving misrepresentation of structured notes and their unsuitability for clients [3] Company Developments - Stifel has agreed to sell its independent advisor channel, which consists of approximately 110 advisors and $9 billion in client assets, to Equitable [3] - Legal issues may accelerate Stifel's decision to sell its remaining business, with Raymond James being considered as a potential buyer [4][5] - Discussions regarding a potential acquisition of Stifel by Raymond James have taken place, highlighting the compatibility of their core businesses [6] Industry Context - The growth of independent businesses in wealth management is outpacing other financial service channels, making scale a competitive advantage [7]

Core Insights - Eaton Partners served as the exclusive placement agent for Formentera Partners, a private equity firm focused on energy assets [1][3] - Formentera Partners Fund III closed oversubscribed with $934.8 million in capital commitments, exceeding its $900 million target, and raised a total of $1.31 billion including co-investment capital [2][3] - Formentera's total assets under management now stand at $2.8 billion, reflecting its growth and commitment to delivering consistent returns [3][6] Company Overview - Formentera Partners is an energy-focused private equity firm founded in 2020, based in Austin, Texas, with a strategy of acquiring and optimizing oil and gas assets [6] - The firm has raised over $2.8 billion in cumulative capital commitments and employs a disciplined investment strategy leveraging operational expertise [6] - Eaton Partners is one of the largest capital placement agents, having raised more than $140 billion for alternative investment funds [4]

Core Insights - Stifel Financial achieved record client assets and revenue in Q3, with net revenue increasing nearly 10% year over year to $907 million, primarily driven by a 13% rise in asset management revenue to $431 million [1][2] - The firm reported record client assets of $544 billion, reflecting a 10% year-over-year increase, with fee-based client assets growing 15% to $219 billion [2] - Despite improved revenue, total expenses rose 7.5% year over year to $565 million, mainly due to a 9.5% increase in compensation expenses to $442 million, while non-compensation operating expenses decreased by 1.8% [3] Advisor Recruitment - Advisor recruitment slowed in Q3, with 33 new advisors added compared to 134 in the first half of the year, resulting in total trailing 12-month production of $18.9 million [4] - The firm remains committed to ongoing recruitment efforts, with a focus on attracting advisors seeking a supportive culture [5][6] Market Outlook - The CEO expressed cautious optimism about the broader market, acknowledging the cyclical nature of markets and emphasizing the importance of disciplined balance and perspective [6][7]

Market Environment - The current credit market is very active, with record pipelines and earnings across the board, indicating a strong cycle for credit despite some expected hiccups [2][4]. - The uncertainty that previously affected the market, such as tax policy and tariffs, has largely been resolved, allowing for increased business activity including M&A and IPOs [4][5]. Economic Outlook - The market is believed to be in the earlier innings of a positive cycle, with expectations of continued growth into 2026, barring any significant geopolitical events [5]. - There is a caution regarding Federal Reserve policy, suggesting that while some rate cuts may be necessary, the idea of multiple significant cuts is not supported [6][10]. Investor Behavior - A generational divide exists in investment perspectives, with older investors focusing on performance while younger investors prioritize interaction through social apps and do not view performance as a primary concern [11][12]. - The blending of prediction markets with investing is seen as problematic, emphasizing the need for education on the differences between investing and gambling [13].

Financial Data and Key Metrics Changes - The company achieved record net revenue of over $1,400,000,000, representing a 17% year-over-year growth [4][12] - Earnings per share reached a record $1.95, up 30% from the previous year [12] - Return on tangible common equity exceeded 24% [4] Business Line Data and Key Metrics Changes - Global Wealth Management reported record revenue of $907,000,000 with pretax margins of nearly 38% [13] - Institutional revenue was $500,000,000, up 34% from the prior year, with investment banking revenue increasing by 33% [16][12] - Fee-related businesses now account for 62% of total revenue, up from 26% in 2011 [9] Market Data and Key Metrics Changes - The S&P 500 is up approximately 15% this year and over 35% from its lows following the Liberation Day tariffs [5] - Gold and silver have outperformed equities this year, indicating a search for stability among investors [6] Company Strategy and Development Direction - The company continues to focus on balanced growth between wealth management and institutional segments, maintaining a revenue mix of approximately 64% wealth and 36% institutional [8] - Future milestones include achieving $10,000,000,000 in annual revenue and $1,000,000,000,000 in client assets [9] - The company emphasizes a disciplined approach to capital allocation, including stock buybacks and strategic acquisitions [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, citing lower taxes, reduced regulatory burdens, and increased capital spending [5] - The investment banking pipeline is at record levels, with strong visibility into future revenues [23] - Management acknowledged potential challenges from the government shutdown affecting IPOs but remains confident in the overall market outlook [34] Other Important Information - The company has maintained a strong balance sheet with a Tier one leverage capital ratio of 11.1% and a Tier one risk-based capital ratio of 17.6% [20] - The compensation ratio was consistent with guidance at 58% [12] Q&A Session Summary Question: Insights on investment banking pipeline and revenue upside - Management noted a strong investment banking pipeline and indicated that the current run rate is not at the 2021 peak but capabilities have improved [30][32] Question: Credit market position and loan book exposure - Management reassured that Stifel is not a regional bank and has a diversified revenue model, with a focus on low-risk lending categories [40][42] Question: Incremental margin improvement in institutional group - Management indicated potential for 10 points of margin improvement, translating to significant free cash flow [56][60] Question: Capital allocation strategy moving forward - Management emphasized that capital allocation will depend on opportunities for risk-adjusted returns, including dividends, stock buybacks, and potential acquisitions [66][68] Question: Trends in advisory business and sponsor activity - Management reported strength in advisory across all sectors, with a positive outlook for the fourth quarter and 2026 [101][102]