Segment Reporting

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Reporting

NOTE 22 – Segment Reporting

We currently operate through the following three business segments: Global Wealth Management, Institutional Group, and various corporate activities combined in the Other segment. Our chief operating decision maker (“CODM”) is our Chairman and Chief Executive Officer. Our CODM regularly reviews segment net revenues, compensation and benefits expense, non-compensation operating expenses, and income before income taxes. Amounts included in non-compensation operating expenses include “Occupancy and equipment rental,” “Communications and office supplies,” “Commissions and floor brokerage,” “Provision for credit losses,” and “Other operating expenses.”

Global Wealth Management

The Global Wealth Management segment consists of two businesses, the Private Client Group and Stifel Bancorp. The Private Client Group includes branch offices and independent contractor offices of our broker-dealer subsidiaries located throughout the United States. These branches provide securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance, as well as offering banking products to their clients through our bank subsidiaries, which provide residential, consumer, and commercial lending, as well as FDIC-insured deposit accounts to customers of our private client group and to the general public.

The success of our Global Wealth Management segment is dependent upon the quality of our products, services, financial advisors, and support personnel, including our ability to attract, retain, and motivate a sufficient number of these associates. We face competition for qualified associates from major financial services companies, including other brokerage firms, insurance companies, banking institutions, and discount brokerage firms. Segment revenue growth and operating income are used to evaluate and measure segment performance by our CODM in assessing performance and deciding how to allocate resources.

Institutional Group

The Institutional Group segment includes institutional sales and trading. It provides securities brokerage, trading, and research services to institutions, with an emphasis on the sale of equity and fixed income products. This segment also includes the management of and participation in underwritings for both corporate and public finance (exclusive of sales credits generated through the private client group, which are included in the Global Wealth Management segment), merger and acquisition, and financial advisory services.

The success of our Institutional Group segment is dependent upon the quality of our personnel, the quality and selection of our investment products and services, pricing (such as execution pricing and fee levels), and reputation. Segment revenue growth and operating income are used to evaluate and measure segment performance by our CODM in assessing performance and deciding how to allocate resources.

Other

The Other segment includes interest income from stock borrow activities, unallocated interest expense, interest income and gains and losses from investments held, amortization of stock-based awards, and all unallocated overhead cost associated with the execution of orders; processing of securities transactions; custody of client securities; receipt, identification, and delivery of funds and securities; compliance with regulatory and legal requirements; internal financial accounting and controls; and general administration and acquisition charges.

Information on reportable segments and reconciliation to consolidated net income available to common shareholders for the three months ended March 31, 2025 and 2024 is as follows (in thousands):

	Three Months Ended March 31,
	2025			2024
Global Wealth Management
Net revenues	$	850,559		$	790,500
Compensation and benefits		422,293			389,536
Non-compensation operating expenses		301,861			110,216
Income before income taxes	$	126,405		$	290,748
Institutional Group
Net revenues		384,929			351,376
Compensation and benefits		252,585			215,749
Non-compensation operating expenses		104,913			98,518
Income before income taxes	$	27,431		$	37,109
Other
Net revenues		19,981			21,162
Compensation and benefits		57,342			74,410
Non-compensation operating expenses		53,111			55,918
Loss before income taxes	$	(90,472	)	$	(109,166	)
Consolidated
Net revenues (1)	$	1,255,469		$	1,163,038
Compensation and benefits		732,220			679,695
Non-compensation operating expenses		459,885			264,652
Income from operations before income tax expense	$	63,364		$	218,691

(1)No individual client accounted for more than 10 percent of total net revenues for the three months ended March 31, 2025 and 2024.

The following table presents our company’s total assets on a segment basis at March 31, 2025 and December 31, 2024 (in thousands):

	March 31, 2025		December 31, 2024
Global Wealth Management	$	35,160,531	$	34,894,973
Institutional Group		5,024,010		4,788,640
Other		199,186		211,927
	$	40,383,727	$	39,895,540

We have operations in the United States, United Kingdom, Europe, and Canada. The Company’s foreign operations are conducted through its wholly owned subsidiaries, SNEL and SNC. Substantially all long-lived assets are located in the United States.

Net revenues, classified by the major geographic areas in which they were earned for the three months ended March 31, 2025 and 2024, were as follows (in thousands):

	Three Months Ended March 31,
	2025		2024
United States	$	1,181,460	$	1,101,004
United Kingdom		48,244		37,525
Canada		16,479		11,620
Other		9,286		12,889
	$	1,255,469	$	1,163,038