Group 1: Gold Market - Gold prices rebounded but faced resistance, touching $3370 before closing at $3355.90, with a gain of 0.24% [1] - Market sentiment for gold remained stable despite calls for a 50 basis point rate cut, with only a $20 increase from the opening price [5] - Technical analysis indicates potential downward movement for gold prices, with support levels identified around $3330-3340 and $3315 [18] Group 2: Federal Reserve and Interest Rates - Recent comments from Federal Reserve officials suggest a cooling of expectations for rate cuts, with emphasis on reviewing more economic data before making decisions [3] - U.S. Treasury Secretary has called for significant rate cuts, suggesting a 50 basis point cut in September and a total reduction of 150 to 175 basis points [5] - Market expectations for rate cuts are aggressive, with a 93.3% probability of a 25 basis point cut in September and a 64.1% probability of a cumulative 50 basis point cut by October [6] Group 3: Economic Indicators - Economists predict a 2.5% year-over-year increase in the Producer Price Index (PPI) for July, with core PPI expected to rise by 2.9% [10] - A slowdown in industrial prices could increase the likelihood of significant rate cuts by the Federal Reserve, potentially impacting the dollar and boosting gold prices [10] Group 4: Stock Market Outlook - U.S. stock indices closed higher, with the Dow Jones up 1.04% and the S&P 500 rising 0.32% [2] - Concerns have been raised about a potential market correction, with UBS issuing a rare bearish stance on the U.S. economy and stock market [10]

Group 1 - UBS has issued a rare "strongly bearish" stance on the US economy, dollar, and stock market, predicting a sharp slowdown in US GDP growth from 2.0% in Q2 to 0.9% by Q4, significantly below the consensus estimate of 1% [1] - UBS expects interest rates to decrease by 1% by the end of the year, which is double the market's expectations [1] - The firm maintains a bearish outlook on the dollar, noting that the US net investment position has reached -88% of GDP, indicating potential weakness [1] Group 2 - UBS highlights that despite investor skepticism about the economic slowdown, multiple indicators suggest it is inevitable, with a complacent attitude towards tariff risks evident in market performance [2] - Stifel analysts predict that the S&P 500 index may decline by up to 14% by the end of 2025, settling at 5500 points, while cautioning that high valuations may limit the impact of potential interest rate cuts by the Federal Reserve [3] - Deutsche Bank warns that tariff increases and tightened immigration policies will negatively impact the US economy, raising inflation while weakening growth, but not leading to a recession [3] Group 3 - Jim Rogers has expressed a pessimistic view on the US stock market, stating that the next economic crisis will be the most severe he has ever witnessed, following a prolonged bull market since 2009 [4][5] - Rogers emphasizes concerns over US debt, suggesting that the perception of safety in US debt may change if the country's global leadership position diminishes [4][6] - As of August 13, US stock indices closed higher, with the Dow up 1.04% and the S&P 500 reaching a new closing high, although many large tech stocks experienced declines [6]

Group 1 - Major Wall Street institutions, including UBS and Stifel, have issued warnings about a potential correction in the US stock market, which is currently at historical highs [1][3][6] - UBS has adopted a rare "strongly bearish" stance, predicting a sharp slowdown in US GDP growth from 2.0% in Q2 to 0.9% by Q4, significantly below the consensus estimate of 1% [3][4] - Stifel analysts forecast a potential decline of up to 14% in the S&P 500 index by the end of 2025, with a target of 5500 points [6][7] Group 2 - Deutsche Bank warns that tariff increases and tightened immigration policies will negatively impact the US economy, raising inflation while weakening growth, with limited room for future rate cuts by the Federal Reserve [9][10] - The bank anticipates that core CPI inflation may rise by approximately 0.5 percentage points due to tariffs, which is significantly higher than market consensus [9][10] - Deutsche Bank has included short positions on 10-year US Treasuries in its macro investment portfolio, targeting a yield of 4.60% [10] Group 3 - There is a notable increase in retail investor activity, with their share of total options trading hovering around 20%, surpassing levels seen during the "meme stock" frenzy in 2021 [7] - The proportion of stocks in household financial assets has surged to 36%, the highest recorded since the 1950s, indicating a potential market bubble [7]

Company Overview - Stifel Financial (SF) currently has a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company holds a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - Over the past week, SF shares increased by 0.42%, while the Zacks Financial - Investment Bank industry rose by 1.52% [6] - In a longer time frame, SF's monthly price change is 6.66%, outperforming the industry's 5.53% [6] - Over the last quarter, SF shares have risen by 17.74%, and over the past year, they are up 41.06%, compared to the S&P 500's increases of 10.57% and 21.94%, respectively [7] Trading Volume - SF's average 20-day trading volume is 744,482 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, two earnings estimates for SF have moved higher, with no downward revisions, raising the consensus estimate from $6.73 to $7.13 [10] - For the next fiscal year, two estimates have also increased, with no downward revisions noted [10] Conclusion - Given the positive performance metrics and earnings outlook, SF is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for investors seeking short-term gains [12]

Core Viewpoint - Goldman Sachs initiates coverage on Uranium Energy (UEC.US) with a "Buy" rating and sets a target price of $13, highlighting the company's potential to increase production capacity significantly in the medium term [1] Group 1: Company Performance and Ratings - Uranium Energy's stock is near its 52-week high of $10.36, with a 126% increase over the past year [1] - Stifel reaffirms a "Buy" rating for Uranium Energy with a target price of $10.50, citing recent positive developments [3] - BMO Capital initiates coverage with an "Outperform" rating and a target price of $7.75, emphasizing the company's strategic position as a U.S. listed uranium producer [3] Group 2: Strategic Developments - Uranium Energy is advancing a series of asset developments aimed at increasing production capacity to millions of pounds [1] - The company has increased its stake in Anfield Energy to 32.4% through the acquisition of 170 million common shares, potentially enhancing its influence [2] - Uranium Energy's Sweetwater Complex has received designation under the FAST-41 transparency project, promoting domestic mineral production [2] Group 3: Market and Industry Context - Goldman Sachs notes that Uranium Energy stands to benefit from potential higher prices in the nuclear fuel supply chain, particularly for U3O8 [1] - The demand for nuclear energy in the U.S. is expected to grow significantly, providing a competitive advantage for Uranium Energy [1] - The company's domestic position may increase its scarcity value amid ongoing policy support and investment in critical minerals [1]

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

智通财经APP获悉，华尔街金融巨头美国银行的股票策略师团队建议投资者们倾向对冲策略，以防范在美股市场屡创历史新高的同时，八月份可能突然爆发 的股票市场动荡。八月历来是全球股市波动剧烈的时期，而最近几周市场却异常平静，这也令华尔街不少投资机构高呼在对冲成本低廉且低波动时期趁 机"逢高卖出"或者采取对冲策略保护投资组合收益。 "在流动性不足方面，八月往往会显露抛售獠牙。"美国银行的美洲股票衍生品研究主管尼廷·萨克塞纳表示。他回忆起自2011年以来该月出现过三次剧烈波 动导致的抛售冲击。 德意志银行统计数据显示，通常在指数上涨时买入、下跌时卖出的商品交易顾问(CTA)，目前持有的股票多头头寸处于94%分位——为2020年1月以来的最高 水平。德银指出，这既表明对股市的信心，也意味着如果市场环境变化，可能出现剧烈反转的风险会加大。 为了对冲这种抛售风险，萨克塞纳团队建议进行所谓的"W形交易"。该策略首先卖出在市场保持平稳运行时能够获利的衍生品或其他投资工具，然后利用所 得收益支付对股票突然大涨或暴跌进行更大规模下注的成本。目前，第二步对冲成本相对便宜，这也是为何华尔街策略师们建议投资者在廉价之际选择对冲 策略，因为市 ...

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]