We measure certain financial assets and liabilities at fair value on a recurring basis, including financial instruments owned, available-for-sale securities, investments, financial instruments sold, but not yet purchased, and derivatives.

We generally utilize third-party pricing services to value Level 1 and Level 2 available-for-sale investment securities, as well as certain derivatives designated as cash flow hedges. We review the methodologies and assumptions used by the third-party pricing services and evaluate the values provided, principally by comparison with other available market quotes for similar instruments and/or analysis based on internal models using available third-party market data. We may occasionally adjust certain values provided by the third-party pricing service when we believe, as the result of our review, that the adjusted price most appropriately reflects the fair value of the particular security.

Following are descriptions of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value. The descriptions include an indication of the level of the fair value hierarchy in which the assets or liabilities are classified.

When available, the fair value of financial instruments is based on quoted prices in active markets and reported in Level 1. Level 1 financial instruments include highly liquid instruments with quoted prices, primarily U.S. government securities, corporate fixed income securities, and equity securities listed in active markets.

If quoted prices are not available for identical instruments, fair values are obtained from pricing services, broker quotes, or other model-based valuation techniques with observable inputs, such as the present value of estimated cash flows, and reported as Level 2. The nature of these financial instruments include instruments for which quoted prices are available but traded less frequently, instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 2 financial instruments include U.S. government agency securities, agency mortgage-backed securities, asset-backed securities, fixed income and equity securities infrequently traded, state and municipal securities, and non-agency mortgage-backed securities and sovereign debt securities, included in other in the table below.

We have identified Level 3 financial instruments to include certain asset-backed securities and syndicated loans, included in other in the table below, with unobservable pricing inputs. Level 3 financial instruments have little to no pricing observability as of the report date. These financial instruments do not have active two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Investments carried at fair value primarily include corporate equity securities, auction-rate securities (“ARS”), and private company investments.

Corporate equity securities are primarily valued based on quoted prices in active markets and reported in Level 1. Corporate equity securities that have little to no pricing observability are reported in Level 3.

ARS are primarily valued based upon our expectations of issuer redemptions and using internal discounted cash flow models that utilize unobservable inputs. ARS are reported as Level 3 assets. Private company investments are primarily valued based upon internally developed models. These valuations require significant management judgment due to the absence of quoted market prices, the inherent lack of liquidity, and their long-term nature. Typically, the initial costs of these investments are considered to represent fair market value, as such amounts are negotiated between willing market participants. Private company investments are primarily reported as Level 3 assets.

Investments at fair value include investments in funds, including certain money market funds that are measured at net asset value (“NAV”). The Company uses NAV to measure the fair value of its fund investments when (i) the fund investment does not have a readily determinable fair value and (ii) the NAV of the investment fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the underlying investments at fair value.

The Company’s investments in funds measured at NAV include partnership interests, mutual funds, money market funds, and private equity funds. Private equity funds primarily invest in a broad range of industries worldwide in a variety of situations, including leveraged buyouts, recapitalizations, growth investments and distressed investments. The private equity funds are primarily closed-end funds in which the Company’s investments are generally not eligible for redemption. Distributions will be received from these funds as the underlying assets are liquidated or distributed.

The general and limited partnership interests in investment partnerships were primarily valued based upon NAVs received from third-party fund managers. The various partnerships are investment companies, which record their underlying investments at fair value based on fair value policies established by management of the underlying fund. Fair value policies at the underlying fund generally require the funds to utilize pricing/valuation information, including independent appraisals, from third-party sources. However, in some instances, current valuation information for illiquid securities or securities in markets that are not active may not be available from any third-party source or fund management may conclude that the valuations that are available from third-party sources are not reliable. In these instances, fund management may perform model-based analytical valuations that may be used as an input to value these investments.

Financial instruments sold, but not purchased, recorded at fair value based on quoted prices in active markets and other observable market data include highly liquid instruments with quoted prices, such as U.S. government securities, and equity and fixed income securities listed in active markets, which are reported as Level 1.

If quoted prices are not available, fair values are obtained from pricing services, broker quotes, or other model-based valuation techniques with observable inputs, such as the present value of estimated cash flows, and reported as Level 2. The nature of these financial instruments include instruments for which quoted prices are available but traded less frequently, instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 2 financial instruments include agency mortgage-backed securities not actively traded, and fixed income securities.

We have identified Level 3 financial instruments to include syndicated loans, included in other in the table below. Level 3 financial instruments have little to no pricing observability as of the report date. These financial instruments do not have active two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Derivatives are valued using quoted market prices for identical instruments when available or observable inputs from forward and futures yield curves. The valuation models used require market observable inputs, including contractual terms, market prices, yield curves, credit curves, and measures of volatility. We have classified our derivatives as Level 2. The counterparties to most of our company’s derivative transactions represent regulated banks, bank holding companies, and derivative clearing houses. Management has determined that the counterparty credit risk associated with its derivative transactions is not significant. Accordingly, the recorded fair values for these transactions have not been adjusted to reflect counterparty credit risk.

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2025, are presented below (in thousands):


	March 31, 2025
	Total		Level 1		Level 2		Level 3
Financial instruments owned:
U.S. government securities	$	11,963	$	11,963	$	—	$	—
U.S. government agency securities		142,251		—		142,251		—
Agency mortgage-backed securities		408,100		—		408,100		—
Asset-backed securities		156,321		—		146,156		10,165
Corporate securities:
Fixed income securities		311,548		160		311,388		—
Equity securities		84,247		83,834		413		—
State and municipal securities		255,835		—		255,835		—
Other (1)		48,891		—		5,532		43,359
Total financial instruments owned		1,419,156		95,957		1,269,675		53,524
Available-for-sale securities:
U.S. government agency securities		2,311		—		2,311		—
State and municipal securities		2,351		—		2,351		—
Mortgage-backed securities:
Agency		991,656		—		991,656		—
Commercial		66,417		—		66,417		—
Non-agency		177		—		177		—
Corporate fixed income securities		428,765		—		428,765		—
Asset-backed securities		121,627		—		121,627		—
Total available-for-sale securities		1,613,304		—		1,613,304		—
Investments:
Corporate equity securities		30,408		14,910		1		15,497
Auction rate securities		552		—		—		552
Other (2)		13,644		4		—		13,640
Investments in funds and partnerships measured at NAV		30,855
Total investments		75,459		14,914		1		29,689
Derivative contracts (3)		91,048				91,048
Subtotal		3,198,967		110,871		2,974,028		83,213
Cash equivalents measured at NAV		18,349
Total assets at fair value on a recurring basis	$	3,217,316	$	110,871	$	2,974,028	$	83,213

(1) Includes syndicated loans, non-agency mortgage-backed securities, and sovereign debt.

(2) Primarily includes private company investments.

(3) Included in other assets in the consolidated statements of financial condition.


	March 31, 2025
	Total		Level 1		Level 2		Level 3
Liabilities:
Financial instruments sold, but not yet purchased:
U.S. government securities	$	495,106	$	495,106	$	—	$	—
Agency mortgage-backed securities		140,550		—		140,550		—
Corporate securities:
Fixed income securities		154,125		—		154,125		—
Equity securities		34,565		34,565		—		—
Other (4)		1,142		—		—		1,142
Total financial instruments sold, but not yet purchased		825,488		529,671		294,675		1,142
Derivative contracts (5)		91,061		—		91,061		—
	$	916,549	$	529,671	$	385,736	$	1,142

(4) Includes syndicated loans.

(5) Included in accounts payable and accrued expenses in the consolidated statements of financial condition.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2024, are presented below (in thousands):


	December 31, 2024
	Total		Level 1		Level 2		Level 3
Financial instruments owned:
U.S. government securities	$	20,045	$	20,045	$	—	$	—
U.S. government agency securities		149,479		—		149,479		—
Agency mortgage-backed securities		262,629		—		262,629		—
Asset-backed securities		113,033		—		111,999		1,034
Corporate securities:
Fixed income securities		274,207		507		273,700		—
Equity securities		50,787		50,472		315		—
State and municipal securities		229,342		—		229,342		—
Other (1)		69,486		—		11,019		58,467
Total financial instruments owned		1,169,008		71,024		1,038,483		59,501
Available-for-sale securities:
U.S. government agency securities		2,266		—		2,266		—
State and municipal securities		2,349		—		2,349		—
Mortgage-backed securities:
Agency		921,563		—		921,563		—
Commercial		67,956		—		67,956		—
Non-agency		199		—		199		—
Corporate fixed income securities		463,992		—		463,992		—
Asset-backed securities		126,273		—		126,273		—
Total available-for-sale securities		1,584,598		—		1,584,598		—
Investments:
Corporate equity securities		30,227		14,661		1		15,565
Auction rate securities		558		—		—		558
Other (2)		14,378		30		—		14,348
Investments in funds and partnerships measured at NAV		30,195
Total investments		75,358		14,691		1		30,471
Derivative contracts (3)		110,814		—		110,814		—
Subtotal		2,939,778		85,715		2,733,896		89,972
Cash equivalents measured at NAV		1,932
Total assets at fair value on a recurring basis	$	2,941,710	$	85,715	$	2,733,896	$	89,972

(1)

Includes syndicated loans, non-agency mortgage-backed securities, and sovereign debt.

(2)

Primarily includes private company investments.

(3)

Included in other assets in the consolidated statements of financial condition.


	December 31, 2024
	Total		Level 1		Level 2		Level 3
Liabilities:
Financial instruments sold, but not yet purchased:
U.S. government securities	$	370,373	$	370,373	$	—	$	—
Agency mortgage-backed securities		65,946		—		65,946		—
Corporate securities:
Fixed income securities		174,425		—		174,425		—
Equity securities		34,437		34,437		—		—
Other (4)		1,090		—		—		1,090
Total financial instruments sold, but not yet purchased		646,271		404,810		240,371		1,090
Derivative contracts (5)		110,825		—		110,825		—
Total liabilities at fair value on a recurring basis	$	757,096	$	404,810	$	351,196	$	1,090

(4)

Includes syndicated loans.

(5)

Included in accounts payable and accrued expenses in the consolidated statements of financial condition.

The following table summarizes the changes in fair value associated with Level 3 financial instruments during the three months ended March 31, 2025 (in thousands):


	Three Months Ended March 31, 2025
	Financial instruments owned					Investments
	Asset-Backed Securities		Syndicated Loans			Corporate Equity Securities			Auction Rate Securities			Other
Balance at December 31, 2024	$	1,034	$	58,467		$	15,565		$	558		$	14,348
Unrealized gains/(losses)		—		52			—			(6	)		47
Realized losses		—		—			(404	)		—			(755	)
Purchases		9,131		8,900			336			—			—
Redemptions		—		(24,060	)		—			—			—
Net change		9,131		(15,108	)		(68	)		(6	)		(708	)
Balance at March 31, 2025	$	10,165	$	43,359		$	15,497		$	552		$	13,640

The results included in the table above are only a component of the overall investment strategies of our company. The table above does not present Level 1 or Level 2 valued assets or liabilities. The changes in unrealized gains/(losses) recorded in earnings for the three months ended March 31, 2025, relating to Level 3 assets still held at March 31, 2025, were immaterial.

The fair value of certain Level 3 assets was determined using various methodologies, as appropriate, including third-party pricing vendors and broker quotes. These inputs are evaluated for reasonableness through various procedures, including due diligence reviews of third-party pricing vendors, variance analyses, consideration of current market environment, and other analytical procedures.

The fair value for our auction rate securities was determined using an income approach based on an internally developed discounted cash flow model. The discounted cash flow model utilizes two significant unobservable inputs: discount rate and workout period. Significant increases in any of these inputs in isolation would result in a significantly lower fair value. On an ongoing basis, management verifies the fair value by reviewing the appropriateness of the discounted cash flow model and its significant inputs.

The following reflects the fair value of financial instruments as of March 31, 2025 and December 31, 2024, whether or not recognized in the consolidated statements of financial condition at fair value (in thousands).


	March 31, 2025				December 31, 2024
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	2,725,992	$	2,725,992	$	2,648,308	$	2,648,308
Cash segregated for regulatory purposes		28,065		28,065		29,895		29,895
Securities purchased under agreements to resell		642,850		642,850		528,976		528,976
Financial instruments owned		1,419,156		1,419,156		1,169,008		1,169,008
Available-for-sale securities		1,613,304		1,613,304		1,584,598		1,584,598
Held-to-maturity securities		6,716,753		6,713,101		6,524,954		6,547,647
Bank loans		20,225,273		19,634,492		20,731,796		20,229,458
Loans held for sale		1,016,127		1,016,127		578,980		578,980
Investments		75,459		75,459		75,358		75,358
Derivative contracts (1)		91,048		91,048		110,814		110,814
Financial liabilities:
Securities sold under agreements to repurchase	$	684,561	$	684,561	$	580,170	$	580,170
Bank deposits		29,639,272		27,838,167		29,102,227		27,164,580
Financial instruments sold, but not yet purchased		825,488		825,488		646,271		646,271
Senior notes		616,824		563,406		616,618		561,851
Debentures to Stifel Financial Capital Trusts		60,000		57,063		60,000		58,788
Derivative contracts (2)		91,061		91,061		110,825		110,825

(1) Included in other assets in the consolidated statements of financial condition.
(2) Included in accounts payable and accrued expenses in the consolidated statements of financial condition.

The following tables present the estimated fair values and fair value hierarchy of financial instruments that are not recorded at fair value in the consolidated statements of financial condition or measured at fair value on a nonrecurring basis as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025
	Total		Level 1		Level 2		Level 3
Financial assets:
Cash	$	2,707,643	$	2,707,643	$	—	$	—
Cash segregated for regulatory purposes		28,065		28,065		—		—
Securities purchased under agreements to resell		642,850		—		642,850		—
Held-to-maturity securities		6,713,101		—		6,641,005		72,096
Bank loans		19,634,492		—		19,489,586		144,906
Loans held for sale		1,016,127		—		1,016,127		—
Financial liabilities:
Securities sold under agreements to repurchase	$	684,561	$	—	$	684,561	$	—
Bank deposits		27,838,167		—		27,838,167		—
Senior notes		563,406		563,406		—		—
Debentures to Stifel Financial Capital Trusts		57,063		—		—		57,063


	December 31, 2024
	Total		Level 1		Level 2		Level 3
Financial assets:
Cash	$	2,646,376	$	2,646,376	$	—	$	—
Cash segregated for regulatory purposes		29,895		29,895		—		—
Securities purchased under agreements to resell		528,976		—		528,976		—
Held-to-maturity securities		6,547,647		—		6,474,140		73,507
Bank loans		20,229,458		—		20,104,756		124,702
Loans held for sale		578,980		—		578,980		—
Financial liabilities:
Securities sold under agreements to repurchase	$	580,170	$	—	$	580,170	$	—
Bank deposits		27,164,580		—		27,164,580		—
Senior notes		561,851		561,851		—		—
Debentures to Stifel Financial Capital Trusts		58,788		—		—		58,788

The following, as supplemented by the discussion above, describes the valuation techniques used in estimating the fair value of our financial instruments as of March 31, 2025 and December 31, 2024.

Securities purchased under agreements to resell are collateralized financing transactions that are recorded at their contractual amounts plus accrued interest. The carrying values at March 31, 2025 and December 31, 2024 approximate fair value due to their short-term nature.

Securities held to maturity are recorded at amortized cost based on our company’s positive intent and ability to hold these securities to maturity. Securities held to maturity include asset-backed securities, consisting of collateralized loan obligation securities and student loan ARS. The estimated fair value, included in the above table, is determined using several factors; however, primary weight is given to discounted cash flow modeling techniques that incorporated an estimated discount rate based upon recent observable debt security issuances with similar characteristics.

The fair values of mortgage loans and commercial loans were primarily estimated using a discounted cash flow method, a form of the income approach. Discount rates were determined considering rates at which similar portfolios of loans, with similar remaining maturities, would be made and considering liquidity spreads applicable to each loan portfolio based on the secondary market. The estimated fair value of individually evaluated loans may include peer multiples, discounted cash flow, and collateral liquidation each of which includes unobservable inputs and judgements within.

Loans held for sale consist of fixed-rate and adjustable-rate residential real estate mortgage loans intended for sale. Loans held for sale are stated at lower of cost or market value. Market value is determined based on prevailing market prices for loans with similar characteristics or on sale contract prices.

Securities sold under agreements to repurchase are collateralized financing transactions that are recorded at their contractual amounts plus accrued interest. The carrying values at March 31, 2025 and December 31, 2024 approximate fair value due to the short-term nature.

The fair value of interest-bearing deposits, including certificates of deposits, demand deposits, savings, and checking accounts, was calculated by discounting the future cash flows using discount rates based on the replacement cost of funding of similar structures and terms.

The fair value of our senior notes is estimated based upon quoted market prices.

The fair value of our trust preferred securities is based on the discounted value of contractual cash flows. We have assumed a discount rate based on similar type debt instruments.

These fair value disclosures represent our best estimates based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected losses, current economic conditions, risk characteristics of the various instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in the above methodologies and assumptions could significantly affect the estimates.