Stifel Financial : 2019 4th Quarter Earnings

January 30, 2020

FOR IMMEDIATE RELEASE

Media Contact: Neil Shapiro [phone]

Investor Contact: Joel Jeffrey [phone]

www.stifel.com/investor-relations

STIFEL REPORTS RECORD FOURTH QUARTER AND FULL-YEAR RESULTS

• 24th consecutive year of record net revenues of $3.3 billion, an increase of 10.3% compared with 2018.
• Quarterly record net revenues of $944.3 million, an increase of 14.9% over our previous record quarter.
• Record quarterly net income available to common shareholders of $125.8 million, or $1.62 per diluted common share.
• Record non-GAAP net income available to common shareholders of $146.6 million, or $1.88 per diluted common share.
• Record client assets of $329.5 billion, increased 22.1% compared with the year-ago quarter.
• Quarterly GAAP return on tangible common equity of 26.3%.
• Quarterly non-GAAP return on tangible common equity of 30.6%.
• Increasing quarterly dividend by 13% to $0.17 per common share starting in first quarter of 2020.

ST. LOUIS, MO - Stifel Financial Corp. (NYSE: SF) today reported net income available to common shareholders of $125.8 million, or $1.62 per diluted common share on record net revenues of $944.3 million for the three months ended December 31, 2019, compared with net income available to common shareholders of $111.7 million, or $1.38 per diluted common share, on net revenues of $793.4 million for the fourth quarter of 2018.

For the three months ended December 31, 2019, the Company reported non-GAAP net income available to common shareholders of $146.6 million, or $1.88 per diluted common share. The Company's reported GAAP net income for the three months ended December 31, 2019 was primarily impacted by merger-related expenses. Details discussed below and in the "Non-GAAP Financial Matters" section.

Chairman's Comments

"2019 was a remarkable year for Stifel as we achieved our 24th consecutive year of record net revenues. We continued to execute on our long-term strategy of combining organic growth with accretive acquisitions. As evidenced by our record non-GAAP earnings per share of $6.10, non-GAAP return on tangible equity of nearly 25%, and the return of more than $300 million to common shareholders through repurchases and dividends, we have been able to grow our business and enhance shareholder value," stated Ronald J. Kruszewski, Chairman and Chief Executive Officer of Stifel.

Mr. Kruszewski continued, "As I look to 2020, I am optimistic about our success. The market environment remains strong and we enter the year with record client assets, robust recruiting and investment banking pipelines, and incremental revenue from the six acquisitions we closed in 2019. In short, Stifel remains well positioned to capitalize on current market trends as the diversity of our business model enables us to generate strong results in various operating environments."

1

Fourth Quarter Review

Quarterly Highlights

• Record net revenues of $944.3 million, increased 19.0% with the year-ago quarter, and increased 14.9% sequentially.
• Record net revenues in Global Wealth Management and Institutional Group segments.
• Record net income available to common shareholders of $125.8 million, or $1.62 per diluted common share.
• Record non-GAAP net income available to common shareholders of $146.6 million, or $1.88 per diluted common share.
• Bank net interest margin of 3.19% increased 5 basis points sequentially.
• Repurchased approximately 0.6 million shares of the Company's common stock at an average price of $54.15 per share.
• Completed the acquisitions of MainFirst and the Capital Markets business of GMP Capital Inc.

Financial Highlights (Unaudited)											Three Months Ended
																					Non-			Non-
			GAAP			GAAP	%			GAAP	%			GAAP (1)		GAAP (1)	%
($ in 000s, except per share data)	12/31/19		12/31/18		Change	9/30/19			Change	12/31/19		12/31/18		Change
Net revenues		$	944,251			$	793,449			19.0		$	821,572				14.9			$	944,425			$	793,449			19.0
Net income applicable to Stifel Financial		$	130,690																	$	151,442
Corp.				$	114,062			14.6		$	109,414				19.4					$	129,134			17.3
Preferred dividends			4,843				2,344			106.6			4,844				n/m				4,843				2,344			106.6
Net income available to common shareholders		$	125,847			$	111,718			12.6		$	104,570				20.3		$	146,599		$	126,790		15.6
Earnings per diluted common share		$	1.68			$	1.41			19.1		$	1.40				20.0			$	1.95			$	1.60			21.9
Earnings per diluted common share available		$	1.62																$	1.88
to common shareholders				$	1.38			17.4		$	1.34				20.9			$	1.57		19.7
Compensation ratio			60.0	%			56.5	%					59.2	%							58.3	%			56.0	%
Non-compensation ratio			22.8	%			23.8	%					22.5	%							21.2%			22.1%
Pre-tax operating margin (2)			17.2	%			19.7	%					18.3	%							20.5	%			21.9	%

Brokerage Revenues

Brokerage revenues, defined as commissions and principal transactions, were $289.6 million, a 16.5% increase compared with the fourth quarter of 2018 and a 10.6% increase compared with the third quarter of 2019.

($ in 000s)						Three Months Ended
	12/31/19				12/31/18				% Change				9/30/19				% Change
Global Wealth Management			$	174,000			$	157,331				10.6				$	160,117				8.7
Institutional brokerage:
Equity capital markets				45,989				48,705				(5.6	)				41,037				12.1
Fixed income capital markets				69,563				42,463				63.8					60,613				14.8
Total institutional brokerage				115,552				91,168				26.7					101,650				13.7
Total brokerage revenues		$	289,552			$	248,499			16.5				$	261,767			10.6

• Global Wealth Management brokerage revenues were $174.0 million, a 10.6% increase compared with the fourth quarter of 2018 and an 8.7% increase compared with the third quarter of 2019.
• Institutional equity brokerage revenues were $46.0 million, a 5.6% decrease compared with the fourth quarter of 2018 and a 12.1% increase compared with the third quarter of 2019.
• Institutional fixed income brokerage revenues were $69.6 million, a 63.8% increase compared with the fourth quarter of 2018 and a 14.8% increase compared with the third quarter of 2019.

2

Investment Banking Revenues

Investment banking revenues were a record $277.2 million, a 37.7% increase compared with the fourth quarter of 2018 and a 39.4% increase compared with the third quarter of 2019.

($ in 000s)					Three Months Ended
	12/31/19			12/31/18			% Change		9/30/19			% Change
Capital raising:
Global Wealth Management	$	9,278	$	7,915	17.2		$	9,855	(5.9)
Equity capital markets		64,384			51,839	24.2			53,006	21.5
Fixed income capital markets				48,181			30,390			58.5			31,082			55.0
Institutional Group		112,565			82,229		36.9			84,088			33.9
Total capital raising				121,843			90,144			35.2			93,943			29.7
Advisory fees		155,331			111,089	39.8			104,847	48.2
Total investment banking			$	277,174		$	201,233			37.7		$	198,790			39.4

• Global Wealth Management capital raising revenues were $9.3 million, a 17.2% increase compared with the fourth quarter of 2018 and a 5.9% decrease compared with the third quarter of 2019.
• Institutional equity capital raising revenues were $64.4 million, a 24.2% increase compared with the fourth quarter of 2018 and a 21.5% increase compared with the third quarter of 2019.
• Institutional fixed income capital raising revenues were $48.2 million, a 58.5% increase compared with the fourth quarter of 2018 and a 55.0% increase compared with the third quarter of 2019.
• Advisory fee revenues were $155.3 million, a 39.8% increase compared with the fourth quarter of 2018 and a 48.2% increase compared with the third quarter of 2019.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were a record $224.0 million, a 6.6% increase compared with the fourth quarter of 2018 and a 2.9% increase compared with the third quarter of 2019. The increase from the comparative period in 2018 is primarily attributable to the growth in fee-based accounts, as a result of market appreciation and new client assets. See Asset Management and Service Fee Break-down table.

Net Interest Income

Net interest income of $135.7 million, a 7.1% increase compared with the fourth quarter of 2018 and a 0.7% increase compared with the third quarter of 2019. See Net Interest Income Analysis table.

• Interest income was $167.1 million, a 9.5% decrease compared with the fourth quarter of 2018 and a 6.5% decrease compared with the third quarter of 2019.
• Interest expense was $31.4 million, a 45.7% decrease compared with the fourth quarter of 2018 and a 28.8% decrease compared with the third quarter of 2019.

3

Annual Review

Annual Highlights

• Record net revenues of $3.3 billion, increased 10.3% compared with 2018.
• Record net revenues and pre-tax operating income in Global Wealth Management.
• Record net revenues in Institutional Group.
• Record net income available to common shareholders of $431.1 million, or $5.49 per diluted common share.
• Record non-GAAP net income available to common shareholders of $479.6 million, or $6.10 per diluted common share.

For year ended December 31, 2019, the Company reported net income available to common shareholders of $431.1 million, or $5.49 per diluted common share on record net revenues of $3.3 billion, compared with net income available to common shareholders of $384.6 million, or $4.73 per diluted common share, on net revenues of $3.0 billion for the comparable in 2018.

For the year ended December 31, 2019, the Company reported non-GAAP net income available to common shareholders of $479.6 million, or $6.10 per diluted common share. The Company's reported GAAP net income for the year ended December 31, 2019 was primarily impacted by merger-related expenses. Details are discussed below and in the "Non-GAAP Financial Matters" section.

Financial Highlights (Unaudited)									Year Ended
														Non-			Non-
			GAAP			GAAP	%			GAAP (1)		GAAP (1)	%
($ in 000s, except per share data)		12/31/19				12/31/18			Change			12/31/19				12/31/18			Change
Net revenues		$	3,337,030			$	3,024,881			10.3			$	3,337,204			$	3,024,906			10.3
Net income applicable to Stifel Financial Corp.	$	448,396		$	393,968		13.8			$	496,955			$	438,817			13.2
Preferred dividends			17,319				9,375			84.7				17,319				9,375			84.7
Net income available to common shareholders	$	431,077			$	384,593			12.1		$	479,636			$	429,442			11.7
Earnings per diluted common share		$	5.71			$	4.84			18.0			$	6.32			$	5.40			17.0
Earnings per diluted common share available to common		$	5.49										$	6.10
shareholders				$	4.73			16.1					$	5.28			15.5
Compensation ratio			59.3%			58.5%						58.3%			58.0	%
Non-compensation ratio		22.7%			23.8%						21.8%			22.4%
Pre-tax operating margin (3)			18.0%			17.7%						19.9%			19.6	%

Brokerage Revenues

Brokerage revenues were $1.1 billion, a 6.3% increase compared with 2018.

($ in 000s)						Year Ended
	12/31/19				12/31/18			% Change
Global Wealth Management		$	649,699			$	638,173			1.8
Institutional brokerage:
Equity capital markets			166,577				185,960			(10.4	)
Fixed income capital markets		255,969				184,977	38.4
Total institutional brokerage			422,546				370,937			13.9
Total brokerage revenues		$	1,072,245			$	1,009,110			6.3

• Global Wealth Management brokerage revenues were $649.7 million, a 1.8% increase compared with 2018.
• Institutional equity brokerage revenues were $166.6 million, a 10.4% decrease compared with 2018.
• Institutional fixed income brokerage revenues were $256.0 million, a 38.4% increase compared with 2018.

4

Investment Banking Revenues

Investment banking revenues were $817.4 million, a 15.5% increase compared with 2018.

($ in 000s)					Year Ended
	12/31/19			12/31/18			% Change
Capital raising:
Global Wealth Management		37,915			31,293	21.2
Equity capital markets				204,405			213,633			(4.3	)
Fixed income capital markets				127,122			91,262			39.3
Institutional Group		331,527			304,895		8.7
Total capital raising				369,442			336,188			9.9
Advisory fees (4)				447,979			371,482			20.6
Total investment banking			$	817,421		$	707,670			15.5

• Global Wealth Management capital raising revenues were $37.9 million, a 21.2% increase compared with 2018.
• Institutional equity capital raising revenues were $204.4 million, a 4.3% decrease compared with 2018.
• Institutional fixed income capital raising revenues were $127.1 million, a 39.3% increase compared with 2018.
• Advisory fee revenues were $448.0 million, a 20.6% increase compared with 2018.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were $848.0 million, a 5.2% increase compared with 2018. The increase is primarily attributable to the growth in fee-based accounts, as a result of market appreciation and new client assets.

Net Interest Income

Net interest income of $547.0 million, a 14.8% increase compared with 2018. The increase is primarily attributable to growth of interest- earning assets and interest-bearing liabilities, as well as higher interest rates.

• Interest income was $724.9 million, a 12.1% increase compared with 2018.
• Interest expense was $177.9 million, a 4.6% increase compared with 2018.

Fourth Quarter & Full Year 2019

Compensation and Benefits Expenses

For the quarter ended December 31, 2019, compensation and benefits expenses were $567.0 million, which included $16.3 million of merger-related and severance expenses (non-GAAP adjustments). This compares with $448.4 million in the fourth quarter of 2018 and $486.2 million in the third quarter of 2019. Excluding the non-GAAP adjustments, compensation and benefits as a percentage of net revenues were 58.3% in the fourth quarter of 2019 (non-GAAP measure).

For the year ended December 31, 2019, compensation and benefits expenses were $2.0 billion, which included $32.4 million of merger- related and severance expenses (non-GAAP adjustments), compared to $1.8 billion in 2018. Excluding the non-GAAP adjustments, compensation and benefits as a percentage of net revenues were 58.3% in the year ended December 31, 2019 (non-GAAP measure).

($ in 000s)		Three Months Ended		Year Ended
	12/31/19			12/31/18			12/31/19			12/31/18
GAAP compensation and benefits		$	566,981		$	448,375		$	1,978,116		$	1,770,762
As a percentage of net revenues			60.0	%		56.5%		59.3	%		58.5%
Non-GAAP adjustments: (5)
Merger-related and severance		(16,304)		(4,044)		(32,367)		(17,333)
Non-GAAP compensation and benefits		$	550,677		$	444,331		$	1,945,749		$	1,753,429
As a percentage of non-GAAP net revenues		58.3%		56.0%		58.3%		58.0%

5

Non-Compensation Operating Expenses

For the quarter ended December 31, 2019, non-compensation operating expenses were $214.7 million, which included $15.0 million of merger-related expenses (non-GAAP adjustments). This compares with $189.1 million in the fourth quarter of 2018 and $184.7 million in the third quarter of 2019. Excluding the non-GAAP adjustments, non-compensation operating expenses as a percentage of net revenues for the quarter ended December 31, 2019 were 21.2% (non-GAAP measure).

For the year ended December 31, 2019, non-compensation operating expenses were $759.8 million, which included $32.2 million of merger-related expenses (non-GAAP adjustments), compared with $719.8 million in 2018. Excluding the non-GAAP adjustments, non- compensation operating expenses as a percentage of net revenues for the year ended December 31, 2019 were 21.8% (non-GAAP measure).

($ in 000s)		Three Months Ended		Year Ended
	12/31/19			12/31/18			12/31/19			12/31/18
GAAP non-compensation expenses		$	214,677		$	189,143		$	759,776		$	719,757
As a percentage of net revenues			22.8	%		23.8%		22.7	%		23.8%
Non-GAAP adjustments: (5)
Merger-related		(14,964)		(13,670)		(28,663)		(33,862)
Litigation-related			-			(18	)		(3,507	)		(6,792)
			(14,964)		(13,688)		(32,170)		(40,654)
Non-GAAPnon-compensation expenses		$	199,713		$	175,455		$	727,606		$	679,103
As a percentage of non-GAAP net revenues		21.2%		22.1%		21.8%		22.4%

Provision for Income Taxes

The GAAP effective income tax rate for the quarter ended December 31, 2019 was 19.6%. This compares with an effective income tax rate of 26.9% for the fourth quarter of 2018 and 27.1% for the third quarter of 2019. The adjusted non-GAAP effective income tax rate for the quarter ended December 31, 2019 was 22.0%.

The GAAP effective income tax rate for the year ended December 31, 2019 was 25.0%, compared with 26.3% in 2018. The adjusted non-GAAP effective income tax rate for the year ended December 31, 2019 was 25.0%.

($ in 000s)		Three Months Ended		Year Ended
	12/31/19			12/31/18			12/31/19				12/31/18
GAAP provision for income taxes		$	31,925		$	41,869		$	149,152			$	140,394
GAAP effective tax rate		19.6%		26.9%		25.0%			26.3%
Non-GAAP adjustments: (5)
Merger-related,litigation-related, and severance			7,203			4,262			16,152				15,242
Other			3,487			(1,602)			-				(2,079)
			10,690			2,660			16,152				13,163
Non-GAAP provision for income taxes		$	42,615		$	44,529		$	165,304			$	153,557
Non-GAAP effective tax rate		22.0%		25.6%		25.0%			25.9%

6

Conference Call Information

Stifel Financial Corp. will host its fourth quarter 2019 financial results conference call on Thursday, January 30, 2020, at 8:00 a.m. Eastern time. The conference call may include forward-looking statements.

All interested parties are invited to listen to Stifel's Chairman and CEO, Ronald J. Kruszewski, by dialing [phone] and referencing conference ID #8290063. A live audio webcast of the call, as well as a presentation highlighting the Company's results, will be available through the Company's web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

Company Information

Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel's broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated; Keefe Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Century Securities Associates, Inc., in the United Kingdom and Europe through Stifel Nicolaus Europe Limited, and in Canada through Stifel Nicolaus Canada, Inc. The Company's broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company's web site at www.stifel.com.

Forward-Looking Statements

This earnings release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies' operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. Stifel Financial Corp. disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

7

		Summary Results of Operations (Unaudited)
						Three Months Ended								Year Ended
		12/31/19					%						%			12/31/19				%
($ in 000s, except per share amounts)			12/31/18		Change			9/30/19			Change				12/31/18		Change
Revenues:
Commissions	$	183,144		$	167,039	9.6		$	163,920		11.7		$	667,494	$	657,732	1.5
Principal transactions		106,408				81,460		30.6				97,847				8.7			404,751			351,378		15.2
Brokerage revenues		289,552				248,499		16.5				261,767			10.6			1,072,245			1,009,110		6.3
Advisory fees		155,331				111,089	39.8				104,847		48.2			447,979			371,482	20.6
Capital raising		121,843				90,144		35.2				93,943				29.7			369,442			336,188		9.9
Investment banking		277,174				201,233		37.7				198,790			39.4			817,421			707,670		15.5
Asset management and service fees		223,969				210,063		6.6				217,628				2.9			848,035			806,175		5.2
Other income		17,917				6,996		156.1				8,747				104.8			52,378			25,553		105.0
Operating revenues		808,612				666,791		21.3				686,932				17.7			2,790,079			2,548,508		9.5
Interest revenue		167,087				184,534		(9.5	)			178,784				(6.5	)		724,882			646,449		12.1
Total revenues		975,699				851,325		14.6				865,716				12.7			3,514,961			3,194,957		10.0
Interest expense		31,448				57,876		(45.7	)			44,144				(28.8	)		177,931			170,076		4.6
Net revenues		944,251				793,449		19.0				821,572				14.9			3,337,030			3,024,881		10.3
Non-interest expenses:
Compensation and benefits		566,981				448,375		26.5				486,160				16.6			1,978,116			1,770,762		11.7
Occupancy and equipment rental		64,327				57,158		12.5				58,649				9.7			242,893			222,384		9.2
Communication and office supplies		39,845				36,786	8.3				36,817		8.2			147,428			140,254	5.1
Commissions and floor brokerage		11,505				11,169		3.0				10,542				9.1			44,011			41,967		4.9
Provision for loan losses		4,412				5,122		(13.9	)			929				374.9			9,977			18,366		(45.7	)
Other operating expenses		94,588				78,908		19.9				77,721				21.7			315,467			296,786		6.3
Total non-interest expenses		781,658				637,518		22.6				670,818			16.5			2,737,892			2,490,519		9.9
Income before income taxes		162,593				155,931		4.3				150,754				7.9			599,138			534,362		12.1
Provision for income taxes		31,925				41,869	(23.8)			40,632		(21.4)		149,152			140,394	6.2
Net income		130,668				114,062		14.6				110,122				18.7			449,986			393,968		14.2
Net income/(loss) applicable to non-		(22)			-													1,590			-
controlling interests					n/m			708		(103.1)					n/m
Net income applicable to Stifel
Financial Corp.		130,690				114,062		14.6				109,414				19.4			448,396			393,968		13.8
Preferred dividends		4,843				2,344		106.6				4,844				n/m			17,319			9,375		84.7
Net income available to common
shareholders	$	125,847			$	111,718		12.6			$	104,570				20.3		$	431,077		$	384,593		12.1
Earnings per common share:
Basic	$	1.79			$	1.56		14.7			$	1.47				21.8		$	5.99		$	5.36		11.8
Diluted	$	1.62		$	1.38	17.4		$	1.34		20.9		$	5.49	$	4.73	16.1
Cash dividends declared per common																-
share	$	0.15		$	0.12	25.0		$	0.15				$	0.60	$	0.48	25.0
Weighted average number of
common shares outstanding:
Basic		70,470				71,666		(1.7	)			71,197				(1.0	)		71,998			71,786		0.3
Diluted		77,813				80,706	(3.6)			78,144		(0.4)		78,585			81,321	(3.4)

8

Summary Business Segment Results (Unaudited)

									Three Months Ended							Year Ended
			12/31/19							%						%				12/31/19						%
($ in 000s)		12/31/18			Change	9/30/19			Change					12/31/18			Change
Net revenues:
Global Wealth Management			$	552,945				$	509,256			8.6			$	534,571			3.4			$	2,130,559			$	1,990,319			7.0
Institutional Group				391,907					286,640			36.7				290,222			35.0				1,214,017				1,055,495			15.0
Other				(601	)				(2,447	)		75.4				(3,221	)		81.3				(7,546	)			(20,933	)		64.0
Total net revenues			$	944,251				$	793,449			19.0			$	821,572			14.9			$	3,337,030			$	3,024,881			10.3
Operating expenses:
Global Wealth Management	$ 356,650		$ 320,296		11.4	$ 331,748		7.5			$	1,344,599		$	1,253,316		7.3
Institutional Group				336,366					244,488			37.6				241,599			39.2				1,038,347				898,444			15.6
Other				88,642					72,734			21.9				97,471			(9.1	)			354,946				338,759			4.8
Total operating expenses			$	781,658				$	637,518			22.6			$	670,818			16.5			$	2,737,892			$	2,490,519			9.9
Operating contribution:
Global Wealth Management	$ 196,295		$ 188,960		3.9	$ 202,823		(3.2)		$	785,960		$	737,003		6.6
Institutional Group				55,541					42,152			31.8				48,623			14.2				175,670				157,051			11.9
Other	(89,243)	(75,181)	18.7	(100,692)	(11.4)			(362,492)			(359,692)	0.8
Income before income taxes			$	162,593				$	155,931			4.3			$	150,754			7.9			$	599,138			$	534,362			12.1
As a percentage of net revenues:
Compensation and benefits
Global Wealth Management				49.7					48.5							49.0							49.1				48.6
Institutional Group				63.7					62.0							59.1							60.6				60.0
Non-compensation operating
expenses
Global Wealth Management				14.8					14.4							13.1							14.0				14.4
Institutional Group				22.1					23.3							24.1							24.9				25.1
Income before income taxes
Global Wealth Management				35.5					37.1							37.9							36.9				37.0
Institutional Group				14.2					14.7							16.8							14.5				14.9
Consolidated pre-tax margin				17.2					19.7							18.3							18.0				17.7

9

Financial metrics (unaudited):		As of and For the Three Months Ended
($ in 000s, except percentages and per share amounts)		12/31/19			12/31/18			9/30/19
Total assets	$	24,610,225		$	24,519,598		$	24,160,777
Total Stifel Financial shareholders' equity		3,614,791			3,167,593			3,501,715
Book value per common share (6)	$	48.37	$	42.62	$	46.34

Return on common equity (7)	15.6%	14.9	%	13.2	%
Non-GAAP return on common equity (1) (7)	18.2%	16.9	%	14.8	%
Return on tangible common equity (8)	26.3%	24.1	%	21.6	%
Non-GAAP return on tangible common equity (1) (8)	30.6%	27.3	%	24.2	%
Tier 1 common capital ratio (9)	15.2%	16.8	%	15.6	%
Tier 1 risk based capital ratio (9)	17.6%	18.2	%	18.1	%
Tier 1 leverage capital ratio (9)	10.0%	9.3	%	10.0	%
Pre-tax margin on net revenues	17.2%	19.7	%	18.3	%
Non-GAAPpre-tax margin on net revenues (1) (2)	20.5%	21.9	%	20.2	%
Effective tax rate	19.6%	26.9	%	27.1	%
Non-GAAP effective tax rate (1)	22.0%	25.6	%	26.0	%

Statistical Information (unaudited):												As of and For the Three Months Ended
($ in 000s, except financial advisors and locations)					12/31/19						12/31/18						% Change					9/30/19						% Change
Financial advisors (10)					2,127						2,051						3.7								2,097					1.4
Independent contractors					95						101			(5.9)							96	(1.0)
Total financial advisors					2,222						2,152						3.3								2,193					1.3
Locations					446						404						10.4								426					4.7
Total client assets			$	329,495,000				$	269,862,000						22.1				$			311,819,000					5.7
Fee-based client assets			$	117,189,000				$	90,174,000						30.0				$			108,138,000					8.4
Client money market and insured product			$	14,841,000				$	16,109,000						(7.9	)			$			14,246,000					4.2
Secured client lending (11)			$	3,363,450				$	2,893,074			16.3				$			3,299,359	1.9
Asset Management and Service Fee Revenues:					Asset Management and Service Fee Break-down (unaudited)
												Three Months Ended
($ in 000s)					12/31/19						12/31/18							% Change					9/30/19						% Change
Private Client Group (12)			$		177,987					$		159,775						11.4						$	172,124					3.4
Asset Management						31,653							28,670						10.4							30,650					3.3
Third-party Bank Sweep Program						3,821							11,062						(65.5		)					4,907					(22.1	)
Other (13)						10,508							10,556						(0.5		)					9,947					5.6
Total asset management and service fee revenues			$		223,969				$		210,063						6.6						$	217,628					2.9
Fee-based Assets:													Three Months Ended
($ in millions)					12/31/19						12/31/18							% Change					9/30/19						% Change
Private Client Group (12)			$		92,110					$		66,097						39.4						$	85,163					8.2
Asset Management						36,525							30,269						20.7							33,698					8.4
Elimination (14)						(11,446	)					(6,192	)					84.9							(10,723	)				6.7
Total fee-based assets		$		117,189				$	90,174						30.0					$	108,138			8.4
Individual Program Banks	$		1,185			$	2,569		(53.9)	$	1,225		(3.3)
ROA (bps) (15)
Private Client Group (12)						83.6							89.4														85.0
Asset Management						34.7							37.9														36.4
Individual Program Banks						123.7							159.3														145.3

10

Consolidated Net Interest Income Analysis (Unaudited):
				Three Months Ended
	December 31, 2019		December 31, 2018		September 30, 2019
		Interest Average			Interest	Average			Interest	Average
	Average	Income/ Interest		Average	Income/	Interest		Average	Income/	Interest
($ in millions, except percentages)	Balance	ExpenseRate		Balance	Expense	Rate		Balance	Expense	Rate

Interest-earning assets:	$	805.7	$	3.6	1.80% $
Cash and federal funds sold	689.1	$	4.3	2.52% $	1,056.3	$	5.7	2.15%
Financial instruments owned		1,074.2		5.1	1.91	1,275.9		5.8	1.81	1,157.8		5.7	1.96
Margin balances		1,291.7		11.6	3.58	1,245.0		13.2	4.24	1,308.3		13.3	4.08
Investments:		4,511.8		38.8	3.44
Asset-backed securities			4,909.1		49.2	4.01	4,367.8		42.4	3.88
Mortgage-backed securities		987.9		5.1	2.06	1,599.4		9.0	2.18	1,253.4		6.6	2.10
Corporate fixed income securities		663.7		4.8	2.89	1,143.9		8.4	2.98	743.7		5.7	3.06
State and municipal securities		27.7		0.2	2.22	72.8		0.3	2.02	34.3		0.2	2.27
Other		4.5		-	2.02	-		-	-	4.5		-	5.98
Total Investments		6,195.6		48.9	3.16	7,725.2		66.9	3.47	6,403.7		54.9	3.43
Loans:		3,380.0		36.9	4.37
Commercial and industrial			3,245.7		38.9	4.79	3,330.2		39.7	4.77
Residential real estate		3,144.9		24.0	3.06	2,844.8		21.1	2.96	3,003.8		23.2	3.08
Securities-based loans		2,064.7		18.5	3.59	1,844.9		19.3	4.18	1,959.3		19.9	4.06
Commercial real estate		386.2		5.8	6.03	322.1		4.8	5.94	377.2		5.2	5.52
Loans held for sale		335.3		4.0	4.80	236.5		2.3	3.97	209.7		1.7	3.21
Other		503.4		6.1	4.75	280.2		3.7	5.43	444.9		5.7	5.23
Total Loans		9,814.5		95.3	3.88	8,774.2		90.1	4.11	9,325.1		95.4	4.09
Other interest-bearing assets		642.4		2.6	1.59	836.5		4.2	2.00	678.7		3.8	2.19
Total interest-earning assets/interest income		19,824.1		167.1	3.37	20,545.9		184.5	3.59	19,929.9		178.8	3.59
Interest-bearing liabilities:		31.5		0.1	1.66
Short-term borrowings			58.7		0.5	3.09	21.0		0.1	2.63
Senior notes		1,016.8		11.1	4.38	1,016.0		11.0	4.38	1,016.6		11.1	4.38
Deposits		14,672.8		13.6	0.37	14,631.2		33.0	0.90	14,926.2		24.8	0.67
FHLB		513.0		2.1	1.67	994.2		4.6	1.85	270.1		1.1	1.70
Other interest-bearing liabilities		1,595.6		4.5	1.12	1,532.0		8.8	2.27	1,673.0		7.0	1.66
Total interest-bearing liabilities/interest expense	$	17,829.7	$	31.4	0.71% $	18,232.1	$	57.9	1.27% $	17,906.9	$	44.1	0.99%
Net interest income/margin			$	135.7	2.74%		$	126.6	2.47%		$	134.7	2.70%

Stifel Bancorp, Inc. (16) Net Interest Income Analysis (Unaudited):
				Three Months Ended
	December 31, 2019		December 31, 2018		September 30, 2019
		Interest Average			Interest	Average			Interest	Average
	Average	Income/ Interest		Average	Income/	Interest		Average	Income/	Interest
($ in millions, except percentages)	Balance	ExpenseRate		Balance	Expense	Rate		Balance	Expense	Rate

Interest-earning assets:	$	255.7	$	1.2	1.83% $
Cash and federal funds sold	311.3	$	1.8	2.32% $	540.8	$	3.2	2.36%
Investments		6,195.6		48.9	3.16		7,725.2		66.9	3.47		6,403.7		54.9	3.43
Loans		9,814.5		95.3	3.88		8,774.2		90.1	4.11		9,325.1		95.4	4.09
Other interest-bearing assets		57.4		0.5	3.77		72.9		0.8	4.16		46.7		0.4	3.04
Total interest-earning assets/interest income	$	16,323.2	$	145.9	3.58	$	16,883.6	$	159.6	3.78	$	16,316.3	$	153.9	3.77
Interest-bearing liabilities:		14,672.8		13.6	0.37
Deposits				14,631.2		33.0	0.90		14,926.2		24.8	0.67
FHLB		513.0		2.1	1.67		994.2		4.6	1.85		270.1		1.1	1.70
Other interest-bearing liabilities		1.6		-	7.85		21.0		0.2	3.99		1.7		0.1	6.49
Total interest-bearing liabilities/interest expense	$	15,187.4		15.7	0.41% $	15,646.4		37.8	0.97% $	15,198.0		26.0	0.68%
Net interest income/margin			$	130.2	3.19%			$	121.8	2.89%			$	127.9	3.14%

11

		Stifel Bancorp, Inc. (16) - a component of Global Wealth Management
Selected operating data
(unaudited):							Three Months Ended								Year Ended
($ in 000s, except percentages)	12/31/19						%										12/31/19
	12/31/18				Change	9/30/19		% Change		12/31/18				% Change
	Net Interest Income		$	130,157			$	121,790				6.9			$	127,942			1.7		$	520,377			$	459,549				13.2
	Bank loan loss provision	4,412		5,122		(13.9)	929			374.9	9,977		18,366			(45.7)
	Charge-offs			220				-				n/m				56			292.9			386					14				n/m
	Net Interest Margin			3.19	%			2.89	%			30 bps				3.14	%			5 bps			3.15	%				2.90	%		25 bps
	Financial Metrics (unaudited):																					As of
	($ in 000s, except percentages)														12/31/19					12/31/18		9/30/19
	Total assets												$		16,941,877		$	17,835,917				$		16,442,707
	Total shareholders' equity														1,207,469			1,218,814							1,234,932
	Total loans, net (includes loans held for sale)										10,013,735			8,723,172							9,367,233
	Total deposits														15,332,581			15,863,613						14,836,646
	Available-for-sale securities, at fair value										3,253,588			3,069,055							3,448,207
	Held-to-maturity securities, at amortized cost										2,853,360			4,215,533							2,878,516
	Commercial and industrial														3,438,953			3,304,234							3,315,706
	Residential real estate														3,309,548			2,875,014							3,043,271
	Securities-based loans														2,098,211			1,786,966							1,986,339
	Commercial real estate														428,549			318,961							387,868
	Loans held for sale														389,693			205,557							265,330

Stifel Bank & Trust:
Common equity tier 1 capital ratio (9)		12.1%		14.4	%		13.1	%
Tier 1 capital ratio (9)		12.1%		14.6	%		13.1	%
Total capital ratio (9)		13.3%		15.6	%		14.3	%
Tier 1 leverage ratio (9)		7.1%		7.1	%		7.3	%
Stifel Bank:
Common equity tier 1 capital ratio (9)		17.0%		12.3	%		17.9	%
Tier 1 capital ratio (9)		17.0%		12.3	%		17.9	%
Total capital ratio (9)		18.0%		13.5	%		19.1	%
Tier 1 leverage ratio (9)		7.1%		9.9	%		7.0	%
Credit Metrics:
Allowance for loan losses	$	95,579	$	85,833		$	91,360
Allowance as a percentage of retained loans		0.98%		1.00	%		0.99	%
Net charge-offs as a percentage of average loans		0.00%		0.00	%		0.00	%
Total nonperforming assets		14,748		24,455			18,031
Nonperforming assets as % of total assets		0.09%		0.14	%		0.11	%

12

Global Wealth Management Summary Results of Operations (Unaudited)
													Three Months Ended								Year Ended
			12/31/19										%							%		12/31/19								%
($ in 000s)							12/31/18				Change			9/30/19			Change						12/31/18				Change
Revenues:
Commissions				$	129,129					$	117,006					10.4				$	118,061			9.4		$	477,401					$	472,135			1.1
Principal transactions					44,871						40,325					11.3					42,056			6.7				172,298						166,038			3.8
Brokerage revenues			174,000					157,331			10.6				160,117			8.7				649,699						638,173			1.8
Asset management and service fees			223,952						210,051					6.6					217,616			2.9				847,977						806,132			5.2
Net interest					138,060						132,402					4.3					137,937			0.1				558,891						503,185			11.1
Investment banking					9,278						7,915					17.2					9,855			(5.9	)			37,915						31,374			20.8
Other income					7,655						1,557					391.7					9,046			(15.4	)			36,077						11,455			214.9
Net revenues			552,945					509,256			8.6				534,571			3.4		2,130,559						1,990,319			7.0
Non-interest expenses:
Compensation and benefits			274,954				246,750	11.4			261,681	5.1		1,046,429						968,102	8.1
Non-compensation operating expenses			81,696						73,546					11.1					70,067			16.6				298,170						285,214			4.5
Total non-interest expenses			356,650					320,296			11.4				331,748			7.5		1,344,599						1,253,316			7.3
Income before income taxes				$	196,295					$	188,960					3.9				$	202,823			(3.2	)	$	785,960					$	737,003			6.6
As a percentage of net revenues:
Compensation and benefits					49.7						48.5											49.0							49.1						48.6
Non-compensation operating expenses			14.8						14.4											13.1							14.0						14.4
Income before income taxes					35.5						37.1											37.9							36.9						37.0
	Institutional Group Summary Results of Operations (Unaudited)
													Three Months Ended									Year Ended
	12/31/19											%									%				12/31/19								%
($ in 000s)			12/31/18			Change			9/30/19			Change				12/31/18			Change
Revenues:
Commissions	$	54,015			$		50,034			8.0		$	45,859		17.8		$	190,093	$		185,597		2.4
Principal transactions			61,537						41,134				49.6				55,791				10.3				232,453					185,340				25.4
Brokerage revenues			115,552						91,168			26.7				101,650			13.7				422,546					370,937			13.9
Advisory fees			155,331						111,089				39.8				104,847				48.2				447,979					371,401					20.6
Capital raising			112,565						82,229				36.9				84,088				33.9				331,527					304,895				8.7
Investment banking			267,896						193,318				38.6				188,935				41.8				779,506					676,296					15.3
Other (17)			8,459						2,154				292.7				(363	)			n/m				11,965					8,262				44.8
Net revenues			391,907						286,640				36.7				290,222				35.0				1,214,017				1,055,495					15.0
Non-interest expenses:
Compensation and benefits			249,574						177,782				40.4				171,534				45.5				736,298					633,297				16.3
Non-compensation operating			86,792																												302,049
expenses								66,706				30.1				70,065				23.9								265,147					13.9
Total non-interest expenses			336,366						244,488				37.6				241,599				39.2				1,038,347					898,444				15.6
Income before income taxes	$	55,541			$		42,152			31.8			$	48,623			14.2		$	175,670	$		157,051			11.9
As a percentage of net revenues:
Compensation and benefits			63.7						62.0										59.1								60.6					60.0
Non-compensation operating			22.1																												24.9
expenses								23.3										24.1												25.1
Income before income taxes			14.2						14.7										16.8								14.5					14.9

13

Non-GAAP Financial Measures

The Company utilized certain non-GAAP calculations as additional measures to aid in understanding and analyzing the Company's financial results for the three months ended December 31, 2019, December 31, 2018, and September 30, 2019 and the years ended December 31, 2019 and 2018. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company's core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company's results in the current period to those in prior and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. These non-GAAP measures primarily exclude expenses which management believes are, in some instances, non-recurring and not representative of on-going business.

A limitation of utilizing these non-GAAP measures is that the GAAP accounting effects of these charges do, in fact, reflect the underlying financial results of the Company's business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the Company believes that GAAP measures and the same respective non-GAAP measures of the Company's financial performance should be considered together.

The following table provides details with respect to reconciling net income and earnings per diluted common share on a GAAP basis for the three months ended December 31, 2019, December 31, 2018, and September 30, 2019, and the years ended December 31, 2019 and 2018 to net income and earnings per diluted common share on a non-GAAP basis for the same period.

($ in 000s)		Three Months Ended					Year Ended
	12/31/19				12/31/18				9/30/19				12/31/19				12/31/18
GAAP net income applicable to Stifel Financial Corp.			$	130,690			$	114,062			$	109,414			$	448,396			$	393,968
Preferred dividends		4,843				2,344				4,844				17,319				9,375
Net income available to common shareholders				125,847				111,718				104,570				431,077				384,593
Non-GAAP adjustments:
Merger-related and severance (18)				31,442				17,714				14,850				61,204				51,220
Litigation-related(19)				-				18				-				3,507				6,792
Provision for income taxes (20)		(10,690)			(2,660	)			(2,274)			(16,152)			(13,163)
Total non-GAAP adjustments				20,752				15,072				12,576				48,559				44,849
Non-GAAP net income available to common shareholders	$	146,599		$	126,790		$	117,146			$	479,636		$	429,442
Weighted average diluted shares outstanding				77,813				80,706				78,144				78,585				81,321
GAAP earnings per diluted common share	$	1.68		$	1.41		$	1.40			$	5.71		$	4.84
Non-GAAP adjustments				0.27				0.19				0.16				0.61				0.56
Non-GAAP earnings per diluted common share	$	1.95		$	1.60		$	1.56			$	6.32		$	5.40
GAAP earnings per diluted common share available to common	$	1.62											$	5.49
shareholders		$	1.38		$	1.34				$	4.73
Non-GAAP adjustments				0.26				0.19				0.16				0.61				0.55
Non-GAAP earnings per diluted common share available to	$	1.88											$	6.10
common shareholders				$	1.57			$	1.50					$	5.28

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Footnotes

1. Reconciliations of the Company's GAAP results to these non-GAAP measures are discussed within and under "Non-GAAP Financial Measures."
2. Non-GAAPpre-tax margin for the three months ended December 31, 2019 of 20.5% is calculated by adding non-GAAP adjustments of $31.4 million to our GAAP income before income taxes of $162.6 million and dividing it by non-GAAP net revenues for the quarter of $944.4 million. Reconciliations of the Company's GAAP results to certain non-GAAP measures is discussed within and under "Non-GAAP Financial Measures."
3. Non-GAAPpre-tax margin for the year ended December 31, 2019 of 19.9% is calculated by adding non-GAAP adjustments of $64.7 million to our GAAP income before income taxes of $599.1 million and dividing it by non-GAAP net revenues of $3.3 billion. Reconciliations of the Company's GAAP results to certain non-GAAP measures is discussed within and under "Non-GAAP Financial Measures."
4. Excludes revenue included in the Other segment.
5. See further discussion of non-GAAP adjustments under "Non-GAAP Financial Measures."
6. Book value per common share represents shareholders' equity (excluding preferred stock and non-controlling interests) divided by period end common shares outstanding.
7. Computed by dividing annualized net income by average Stifel Financial common shareholders' equity or, in the case of non- GAAP return on common equity, computed by dividing non-GAAP net income by average Stifel Financial common shareholders' equity.
8. Computed by dividing annualized net income by average tangible shareholders' equity or, in the case of non-GAAP return on tangible common equity, computed by dividing non-GAAP net income by average tangible shareholders' equity. Tangible common shareholders' equity equals total Stifel Financial common shareholders' equity less goodwill and identifiable intangible assets.
9. Capital ratios are estimates at time of the Company's earnings release.
10. Reflects change in the definition of producing brokers as of January 1, 2019. Prior period amounts have been restated to conform with current period presentation.
11. Includes client margin balances held by our broker-dealer subsidiaries and securities-based loans held at our bank subsidiaries.
12. Includes Private Client Group and Trust Business.
13. Includes fund networking fees, retirement fees, transaction/handling fees, and ACAT fees.
14. Asset management assets managed in Private Client Group or Trust accounts.
15. Return on assets (ROA) is calculated based on prior period-end balances for Private Client Group, period-end balances for Asset Management, and average quarterly balances for Individual Program Banks.
16. Includes Stifel Bank & Trust, Stifel Bank, and Stifel Trust Company, N.A.
17. Includes net interest, asset management and service fees, and other income.
18. Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards and promissory notes issued as retention, professional fees, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company's on- going business.
19. Primarily related to costs associated with Company's legal matters.
20. See details of non-GAAP adjustments under "Provision for Income Taxes."

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