Short-Term Borrowings

9 Months Ended

Sep. 30, 2011

Short-Term Borrowings

Short-Term Borrowings

NOTE 11 – Short-Term Borrowings

Our short-term financing is generally obtained through short-term bank line financing on a secured basis, uncommitted short-term bank line financing on an unsecured basis and securities lending arrangements. We borrow from various banks on a demand basis with company-owned and customer securities pledged as collateral. The value of customer-owned securities used as collateral is not reflected in the consolidated statements of financial condition. We maintain available ongoing credit arrangements with banks that provided a peak daily borrowing of $401.2 million during the nine months ended September 30, 2011. There are no compensating balance requirements under these arrangements.

At September 30, 2011, short-term borrowings from banks were $259.7 million at an average rate of 1.09%, which were collateralized by company-owned securities valued at $302.2 million. At December 31, 2010, short-term borrowings from banks were $109.6 million at an average rate of 1.05%, which were collateralized by company-owned securities valued at $162.6 million. The average bank borrowing was $212.4 million and $91.9 million for the three months ended September 30, 2011 and 2010, respectively, at weighted average daily interest rates of 1.15% and 1.28%, respectively. The average bank borrowing was $196.0 million and $108.3 million for the nine months ended September 30, 2011 and 2010, respectively, at weighted average daily interest rates of 1.11% and 1.09%, respectively.

At September 30, 2011 and December 31, 2010, Stifel Nicolaus had a stock loan balance of $119.5 million and $27.9 million, respectively, at weighted average daily interest rates of 0.31% and 0.26%, respectively. The average outstanding securities lending arrangements utilized in financing activities were $121.2 million and $99.5 million during the three months ended September 30, 2011 and 2010, respectively, at weighted average daily effective interest rates of 1.36% and 1.31%, respectively. The average outstanding securities lending arrangements utilized in financing activities were $113.9 million and $66.3 million during the nine months ended September 30, 2011 and 2010, respectively, at weighted average daily effective interest rates of 1.36% and 1.48%, respectively. Customer-owned securities were utilized in these arrangements.