Commercial and industrial (C&I). C&I loans primarily include commercial and industrial lending used for general corporate purposes, working capital and liquidity, and “event-driven.” “Event-driven” loans support client merger, acquisition or recapitalization activities. C&I lending is structured as revolving lines of credit, letter of credit facilities, term loans and bridge loans. Risk factors considered in determining the allowance for corporate loans include the borrower’s financial strength, seniority of the loan, collateral type, leverage, volatility of collateral value, debt cushion, and covenants.

Fund banking. Fund banking loans primarily include capital call lines of credit, also known as subscription lines of credit. These credit facilities are used by closed-end private investment funds (“Fund”) that have raised capital commitments from limited partners to effectively manage the Fund’s cash and bridge timing between the Fund’s investments and capital calls. The lines of credit are collateralized by a pledge of the limited partner’s contractually callable capital and the general partner’s right to call such capital as permitted in the Fund’s partnership agreement.

Securities-based loans. Securities-based loans allow clients to borrow money against the value of qualifying securities for any suitable purpose other than purchasing, trading, or carrying securities or refinancing margin debt. The majority of consumer loans are structured as revolving lines of credit and letter of credit facilities and are primarily offered through Stifel’s Pledged Asset (“SPA”) program. The allowance methodology for securities-based lending considers the collateral type underlying the loan, including the liquidity and trading volume of the collateral, position concentration and other borrower specific factors such as personal guarantees.

Real Estate. Real estate loans include residential real estate non-conforming loans, residential real estate conforming loans, commercial real estate, and home equity lines of credit. The allowance methodology related to real estate loans considers several factors, including, but not limited to, loan-to-value ratio, FICO score, home price index, delinquency status, credit limits, and utilization rates.

Construction and land. Short-term loans used to finance the development of commercial real estate projects.

The following table presents the balance and associated percentage of each major loan category in our bank loan portfolio at March 31, 2025 and December 31, 2024 (in thousands, except percentages):


	March 31, 2025						December 31, 2024
	Balance			Percent			Balance			Percent
Residential real estate	$	8,699,229			42.7	%	$	8,565,193			41.0	%
Commercial and industrial		3,678,411			18.1			4,062,029			19.5
Fund banking		3,659,294			18.0			3,854,222			18.5
Securities-based loans		2,404,960			11.8			2,389,593			11.4
Construction and land		1,206,876			5.9			1,242,002			5.9
Commercial real estate		472,550			2.3			518,923			2.5
Home equity lines of credit		195,811			1.0			193,850			0.9
Other		55,137			0.2			53,933			0.3
Gross bank loans		20,372,268			100.0	%		20,879,745			100.0	%
Loans in process/(unapplied loan payments), net		(3,671	)					(2,885	)
Unamortized loan fees, net		(3,263	)					(5,756	)
Allowance for credit losses on loans		(140,061	)					(139,308	)
Loans held for investment, net	$	20,225,273					$	20,731,796

At March 31, 2025 and December 31, 2024, Stifel Bancorp had loans outstanding to its executive officers and directors and executive officers and directors of certain affiliated entities in the amount of $50.4 million and $39.6 million, respectively.

At March 31, 2025 and December 31, 2024, we had loans held for sale of $1.0 billion and $579.0 million, respectively. For the three months ended March 31, 2025 and 2024, we recognized losses, included in other income in the accompanying consolidated statements of operations, of $0.6 million and $1.4 million, respectively, from the sale of originated loans, net of fees and costs.

At March 31, 2025 and December 31, 2024, loans, primarily consisting of residential and commercial real estate loans of $8.1 billion and $7.9 billion, respectively, were pledged at the Federal Home Loan Bank as collateral for borrowings. At March 31, 2025 and December 31, 2024, loans of $2.5 billion and $2.5 billion, respectively, were pledged with the Federal Reserve discount window.

Accrued interest receivable for loans and loans held for sale at March 31, 2025 and December 21, 2024 was $88.8 million and $92.6 million, respectively, and is reported in other assets on the consolidated statement of financial condition.

The following tables detail activity in the allowance for credit losses on loans by portfolio segment for the three months ended March 31, 2025 and 2024 (in thousands).


	Three Months Ended March 31, 2025
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	92,698	$	11,402		$	(11,806	)	$	—	$	92,294
Construction and land		12,866		385			—			—		13,251
Residential real estate		11,061		111			—			—		11,172
Fund banking		10,792		(546	)		—			—		10,246
Commercial real estate		8,057		1,309			—			—		9,366
Securities-based loans		2,917		11			—			—		2,928
Home equity lines of credit		317		(147	)		—			—		170
Other		600		26			—			8		634
	$	139,308	$	12,551		$	(11,806	)	$	8	$	140,061


	Three Months Ended March 31, 2024
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	67,077	$	1,447		$	(3,570	)	$	933	$	65,887
Commercial real estate		21,386		(697	)		—			—		20,689
Construction and land		11,817		6,772			—			—		18,589
Residential real estate		13,855		(1,348	)		—			—		12,507
Fund banking		10,173		(1,410	)		—			—		8,763
Securities-based loans		3,035		33			—			—		3,068
Home equity lines of credit		371		(125	)		—			—		246
Other		578		(114	)		—			—		464
	$	128,292	$	4,558		$	(3,570	)	$	933	$	130,213

During the three months ended March, 31, 2025, we recorded $12.0 million of net credit loss reserves, including $12.5 million of the reserve for credit losses for funded loans, partially offset by a release of $0.5 million of the allowance for unfunded lending commitments. During the three months ended March 31, 2024, we recorded $5.3 million of net credit loss reserves, including $4.6 million of the reserve for credit losses for funded loans, $0.4 million of the reserve for unfunded lending commitments, and $0.3 million related to employee retention awards. The provision for unfunded lending agreements is included in the provision for credit losses on the consolidated statement of operations. The expected credit losses for unfunded lending commitments, including standby letters of credit and binding unfunded loan commitments, are reported on the consolidated statement of financial condition in accounts payable and accrued expenses.

The following tables present the aging of the recorded investment in past due loans at March 31, 2025 and December 31, 2024 by portfolio segment (in thousands):


	As of March 31, 2025
	30 – 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current Balance		Total
Residential real estate	$	11,311	$	6,249	$	17,560	$	8,681,669	$	8,699,229
Commercial and industrial		66,273		78,020		144,293		3,534,118		3,678,411
Fund banking		7,000		—		7,000		3,652,294		3,659,294
Securities-based loans		115		115		230		2,404,730		2,404,960
Construction and land		—		—		—		1,206,876		1,206,876
Commercial real estate		—		—		—		472,550		472,550
Home equity lines of credit		352		553		905		194,906		195,811
Other		1		80		81		55,056		55,137
Total	$	85,052	$	85,017	$	170,069	$	20,202,199	$	20,372,268


	As of March 31, 2025*
	Nonaccrual		Nonperforming loans with no allowance		Total
Commercial and industrial	$	112,359	$	756	$	113,115
Construction and land		—		40,894		40,894
Residential real estate		3,409		2,840		6,249
Home equity lines of credit		411		142		553
Other		53		27		80
Total	$	116,232	$	44,659	$	160,891

* There were no loans past due 90 days and still accruing interest at March 31, 2025.


	As of December 31, 2024
	30 – 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current Balance		Total
Residential real estate	$	12,057	$	4,273	$	16,330	$	8,548,863	$	8,565,193
Commercial and industrial		59,396		27,190		86,586		3,975,443		4,062,029
Fund banking		—		—		—		3,854,222		3,854,222
Securities-based loans		—		—		—		2,389,593		2,389,593
Construction and land		—		—		—		1,242,002		1,242,002
Commercial real estate		—		—		—		518,923		518,923
Home equity lines of credit		640		315		955		192,895		193,850
Other		7		78		85		53,848		53,933
Total	$	72,100	$	31,856	$	103,956	$	20,775,789	$	20,879,745


	As of December 31, 2024*
	Nonaccrual		Nonperforming loans with no allowance		Total
Commercial and industrial	$	76,254	$	13,504	$	89,758
Construction and land		—		41,412		41,412
Commercial real estate		—		25,441		25,441
Residential real estate		1,433		2,463		3,896
Home equity lines of credit		201		114		315
Other		78		—		78
Total	$	77,966	$	82,934	$	160,900

* There were no loans past due 90 days and still accruing interest at December 31, 2024.

In the normal course of business, we may modify the original terms of a loan agreement. In certain circumstances, we may agree to modify the original terms of a loan agreement to a borrower experiencing financial difficulty, which may include a borrower in default, financial distress, bankruptcy, or other circumstances. Modifications of loans to borrowers experiencing financial difficulty are designed to reduce our loss exposure while providing borrowers with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Loan modifications to borrowers experiencing financial difficulty typically involve principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (i.e., payment or maturity forbearance greater than six months), or a term extension, or any combination thereof. Modified loans to borrowers experiencing financial difficulty are subject to our nonaccrual policies. Loans to borrowers experiencing financial difficulty which were modified during the three months ended March 31, 2025 and 2024 were not material.

The gross interest income related to individually evaluated loans, which would have been recorded, had these loans been current in accordance with their original terms, and the interest income recognized on these loans during the three months ended March 31, 2025 and 2024, were immaterial to the consolidated financial statements.

As of March 31, 2025, bank loans were primarily extended to non-investment grade borrowers. Substantially all of these loans align with the U.S. Federal bank regulatory agencies’ definition of Pass. Loans meet the definition of Pass when they are performing and do not demonstrate adverse characteristics that are likely to result in a credit loss. A loan is determined to be impaired when principal or interest becomes 90 days past due or when collection becomes uncertain. At the time a loan is determined to be impaired, the accrual of

interest and amortization of deferred loan origination fees is discontinued (“nonaccrual status”), and any accrued and unpaid interest income is reversed.

We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk. Trends in delinquency ratios are an indicator, among other considerations, of credit risk within our loan portfolio. The level of nonperforming assets represents another indicator of the potential for future credit losses. Accordingly, key metrics we track and use in evaluating the credit quality of our loan portfolio include delinquency and nonperforming asset rates, as well as charge-off rates and our internal risk ratings of the loan portfolio. In general, we are a secured lender. At March 31, 2025 and December 31, 2024, 96.8% and 96.8% of our loan portfolio was collateralized, respectively. Collateral is required in accordance with the normal credit evaluation process based upon the creditworthiness of the customer and the credit risk associated with the particular transaction. The Company uses the following definitions for risk ratings:

Pass. A credit exposure rated pass has a continued expectation of timely repayment, all obligations of the borrower are current, and the obligor complies with material terms and conditions of the lending agreement.

Special Mention. Extensions of credit that have potential weakness that deserve management’s close attention, and if left uncorrected may, at some future date, result in the deterioration of the repayment prospects or collateral position.

Substandard. Obligor has a well-defined weakness that jeopardizes the repayment of the debt and has a high probability of payment default with the distinct possibility that the Company will sustain some loss if noted deficiencies are not corrected.

Doubtful. Inherent weakness in the exposure makes the collection or repayment in full, based on existing facts, conditions and circumstances, highly improbable, and the amount of loss is uncertain.

Substandard loans are regularly reviewed for impairment. Doubtful loans are considered impaired. When a loan is impaired the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or as a practical expedient, the observable market price of the loan or the fair value of the collateral if the loan is collateral dependent.

Based on the most recent analysis performed, the risk category of our loan portfolio was as follows (in thousands):


	As of March 31, 2025
	Pass		Special Mention		Substandard		Doubtful		Total
Residential real estate	$	8,685,802	$	7,178	$	6,249	$	—	$	8,699,229
Commercial and industrial		3,361,378		100,447		103,471		113,115		3,678,411
Fund banking		3,659,294		—		—		—		3,659,294
Securities-based loans		2,404,960		—		—		—		2,404,960
Construction and land		1,165,983		—		—		40,893		1,206,876
Commercial real estate		391,412		—		81,138		—		472,550
Home equity lines of credit		195,258		—		553		—		195,811
Other		55,057		—		—		80		55,137
Total	$	19,919,144	$	107,625	$	191,411	$	154,088	$	20,372,268


	As of December 31, 2024
	Pass		Special Mention		Substandard		Doubtful		Total
Residential real estate	$	8,557,320	$	3,600	$	4,273	$	—	$	8,565,193
Commercial and industrial		3,662,866		169,637		152,515		77,011		4,062,029
Fund banking		3,854,222		—		—		—		3,854,222
Securities-based loans		2,389,593		—		—		—		2,389,593
Construction and land		1,200,590		—		—		41,412		1,242,002
Commercial real estate		437,062		—		56,420		25,441		518,923
Home equity lines of credit		193,535		—		315		—		193,850
Other		53,855		—		—		78		53,933
Total	$	20,349,043	$	173,237	$	213,523	$	143,942	$	20,879,745