8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

_________________________

FORM 8-K

_________________________

CURRENT REPORT
Pursuant To Section 13 OR 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 31, 2017

_________________________

STIFEL FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

_________________________

Delaware
(State of incorporation)   001-09305
(Commission File Number)   43-1273600
(IRS Employer
Identification No.)  

501 N. Broadway, St. Louis, Missouri  63102-2188

(Address of principal executive offices and zip code)

(314) 342-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

_________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [   ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

Item 2.02  Results of Operations and Financial Condition.

On July 31, 2017, Stifel Financial Corp. (“Stifel”) reported its financial results for the three months ended June 30, 2017. A copy of the related press release is attached hereto as Exhibit 99.1.

Stifel will hold a conference call on Monday, July 31, 2017, at 8:00 a.m. Eastern time. All interested parties are invited to listen to Stifel Chairman and CEO, Ronald J. Kruszewski, by dialing (877) 876-9938 and referencing conference ID #51914622. A live audio webcast of the call, as well as a presentation highlighting the company’s results, will be available through Stifel'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. The conference call slide show is attached hereto as Exhibit 99.2.

The exhibit is being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01  Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit NumberDescription of Exhibit

99.1	Press release dated July 31, 2017.
99.2	Investor presentation.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

STIFEL FINANCIAL CORP.

Date:  July 31, 2017	By:	/s/ James M. Zemlyak
	Name:	James M. Zemlyak
	Title:	President and Chief Financial Officer

3

EXHIBIT INDEX

Exhibit NumberDescription of Exhibit

99.1	Press release dated July 31, 2017.
99.2	Investor presentation.

4

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

STIFEL REPORTS SECOND QUARTER 2017 FINANCIAL RESULTS

• Record net revenues of $725.6 million, increased 11.3% compared with the year-ago quarter and 7.4% sequentially.

• Record net revenues and pre-tax operating income in Global Wealth Management.

• Record net revenues in Institutional Group.

• Net income available to common shareholders of $50.5 million, or $0.63 per diluted common share.

• Non-GAAP net income available to common shareholders of $71.6 million, or $0.90 per diluted common share.

• Record client assets of $258.1 billion, increased 14.2% compared with the year-ago quarter and 2.2% sequentially.

ST. LOUIS, July 31, 2017– Stifel Financial Corp. (NYSE: SF) today reported net income available to common shareholders of $50.5 million, or $0.63 per diluted common share on record net revenues of $725.6 million for the three months ended June 30, 2017, compared with net income available to common shareholders of $9.8 million, or $0.13 per diluted common share, on net revenues of $652.1 million for the second quarter of 2016.

For the three months ended June 30, 2017, the Company reported non-GAAP net income available to common shareholders of $71.6

million, or $0.90 per diluted common share.

For the six months ended June 30, 2017, the Company reported net income available to common shareholders of $113.6 million, or $1.41 per diluted common share on record net revenues of $1.4 billion, compared with net income available to common shareholders of $36.8 million, or $0.48 per diluted share, on net revenues of $1.3 billion for the comparable period in 2016.

For the six months ended June 30, 2017, the Company reported non-GAAP net income available to common shareholders of $131.2 million, or $1.63 per diluted common share.

Chairman’s Comments

“We had a very strong quarter as we generated our third consecutive quarter of record net revenue and our non-GAAP pre-tax margins reached 16.3%, the highest level since the fourth quarter of 2010.  Our revenues benefited from another record quarter from Global Wealth Management and record net revenue in our Institutional Group  driven by record investment banking revenues.  Given the increased contributions from more stable revenue streams such as our bank and fee-based accounts, Stifel’s top and bottom lines are much better positioned to withstand the cyclicality in certain of our more transactional businesses then we were just a few years ago.  Additionally, this quarter illustrated the positive impact that our investments in our investment banking franchise can have our top and bottom lines, despite the challenging environment for institutional brokerage,” stated Ronald J. Kruszewski, Chairman & CEO of Stifel.

Financial Highlights (Unaudited)	Three Months Ended								Six Months Ended
(in 000s, except per share data)	6/30/17		6/30/16		3/31/17		Non-GAAP (1) 6/30/17		Non-GAAP (1) 6/30/17		Non-GAAP (1) 6/30/16
U.S. GAAP
Net revenues	$	725,647	$	652,145	$	675,531	$	725,647	$	1,403,162	$	1,272,119
Compensation ratio		62.5%		70.5%		64.6%		61.4%		61.9%		63.9%
Non-compensation ratio		26.0%		27.1%		23.7%		22.3%		22.6%		26.1%
Pre-tax operating margin		11.5%		2.4%		11.7%		16.3%		15.5%		10.0%
Net income	$	52,811	$	9,771	$	65,512	$	73,991	$	135,840	$	78,364
Preferred dividend		2,344		—		2,344		2,344		4,688		—
Net income available to common shareholders	$	50,467	$	9,771	$	63,168	$	71,647	$	131,152	$	78,364
Earnings per diluted common share	$	0.66	$	0.13	$	0.81	$	0.92	$	1.69	$	1.03
Earnings per diluted common share available to common shareholders	$	0.63	$	0.13	$	0.78	$	0.90	$	1.63	$	1.03

1

Brokerage Revenues

Brokerage revenues, defined as commissions and principal transactions, were $268.0 million, a 13.1% decrease compared with the second quarter of 2016 and an 8.3% decrease compared with the first quarter of 2017. Brokerage revenues generated by the Sterne businesses, which were sold in 2016, were $14.1 million during the second quarter of 2016.

	Three Months Ended
(in 000s)	6/30/17		6/30/16			% Change			3/31/17		% Change
Global Wealth Management brokerage revenues	$	168,085	$	172,179			(2.4	)	$	171,494		(2.0	)
Institutional brokerage:
Equity		50,869		55,008			(7.5	)		53,820		(5.5	)
Fixed income		49,013		81,344			(39.7	)		66,817		(26.6	)
Total institutional brokerage		99,882		136,352			(26.7	)		120,637		(17.2	)
Total brokerage revenues	$	267,967	$	308,531	(2)		(13.1	)	$	292,131		(8.3	)

• Global wealth management brokerage revenues were $168.1 million, a 2.4% decrease compared with the second quarter of 2016 and a 2.0% decrease compared with the first quarter of 2017. Excluding the revenues from the Sterne businesses, global wealth brokerage revenues for the second quarter of 2017 increased 5.5% compared to the second quarter of 2016.

• Institutional equity brokerage revenues were $50.9 million, a 7.5% decrease compared with the second quarter of 2016 and a 5.5% decrease compared with the first quarter of 2017.

• Institutional fixed income brokerage revenues were $49.0 million, a 39.7% decrease compared with the second quarter of 2016 and a 26.6% decrease compared with the first quarter of 2017.

Investment Banking Revenues

Investment banking revenues were $185.3 million, a 39.2% increase compared with the second quarter of 2016 and a 46.0% increase compared with the first quarter of 2017.

	Three Months Ended
(in 000s)	6/30/17		6/30/16		% Change		3/31/17		% Change
Investment banking:
Capital raising:
Equity	$	56,970	$	37,638		51.4	$	45,649		24.8
Fixed income		45,830		28,774		59.3		28,267		62.1
Capital raising		102,800		66,412		54.8		73,916		39.1
Advisory fees:		82,461		66,713		23.6		52,936		55.8
Total investment banking	$	185,261	$	133,125		39.2	$	126,852		46.0

• Equity capital raising revenues were $57.0 million, a 51.4% increase compared with the second quarter of 2016 and a 24.8% increase compared with the first quarter of 2017.

• Fixed income capital raising revenues were $45.8 million, a 59.3% increase compared with the second quarter of 2016 and a 62.1% increase compared with the first quarter of 2017.

• Advisory fee revenues were $82.5 million, a 23.6% increase compared with the second quarter of 2016 and a 55.8% increase compared with the first quarter of 2017.

Asset Management and Service Fee Revenues

Asset management and service fee revenues were a record $172.9 million, a 19.6% increase compared with the second quarter of 2016 and a 6.3% increase compared with the first quarter of 2017. The increase from the comparative period in 2016 is primarily attributable to the growth in the value of fee-based accounts and an increase in the Federal Funds rate, which increased fees earned on cash balances.

2

Net Interest Income

Record net interest income of $92.3 million, a 90.3% increase compared with the second quarter of 2016 and an 8.5% increase compared with the first quarter of 2017.

• Interest income was $109.0 million, a 65.6% increase compared with the second quarter of 2016 and a 7.9% increase compared with the first quarter of 2017. Interest income was impacted by the continued growth of interest-earning assets.

• Interest expense was $16.6 million, a 3.6% decrease compared with the second quarter of 2016 and a 4.7% increase compared with the first quarter of 2017.

Compensation and Benefits Expenses

For the quarter ended June 30, 2017, compensation and benefits expenses were $453.9 million, which included $8.0 million of merger-related and severance expenses. This compares with $460.0 million in the second quarter of 2016 and $436.4 million in the first quarter of 2017. Excluding merger-related expenses, compensation and benefits as a percentage of net revenues were 61.4% in the second quarter of 2017.

	Three Months Ended 6/30/17			Six Months Ended 6/30/17
GAAP compensation and benefits	$	453,876		$	890,263
As a percentage of net revenues		62.5	%		63.5	%
Non-GAAP adjustments: (3)
Merger-related		(5,551	)		(15,356	)
Severance		(2,420	)		(6,955	)
		(7,971	)		(22,311	)
Non-GAAP compensation and benefits	$	445,905		$	867,952
As a percentage of non-GAAP net revenues		61.4	%		61.9	%

Non-Compensation Operating Expenses

For the quarter ended June 30, 2017, non-compensation operating expenses were $188.6 million, which included litigation and merger-related expenses of $26.8 million. This compares with $176.3 million in the second quarter of 2016 and $160.1 million in the first quarter of 2017. Excluding litigation and merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended June 30, 2017 were 22.3%.

	Three Months Ended 6/30/17			Six Months Ended 6/30/17
GAAP non-compensation expenses	$	188,573		$	348,698
As a percentage of net revenues		26.0	%		24.9	%
Non-GAAP adjustments: (3)
Litigation and merger-related		(26,849	)		(32,174	)
Non-GAAP non-compensation expenses	$	161,724		$	316,524
As a percentage of non-GAAP net revenues		22.3	%		22.6	%

Provision for Income Taxes

The GAAP effective income tax rate for the quarter ended June 30, 2017 was 36.5%. This compares with an effective income tax rate of 38.1% for the second quarter of 2016 and 17.1% for the first quarter of 2017. The adjusted non-GAAP effective income tax rate for the quarter ended June 30, 2017 was 37.3%.

	Three Months Ended 6/30/17			Six Months Ended 6/30/17
GAAP provision for income taxes	$	30,387		$	43,894
GAAP effective tax rate		36.5	%		27.1	%
Non-GAAP adjustments: (3)
Litigation and merger-related and severance		13,428			21,840
Excess tax benefits from stock-based compensation (4)		212			17,155
		13,640			38,995
Non-GAAP provision for income taxes	$	44,027		$	82,889
Non-GAAP effective tax rate		37.3	%		37.9	%

3

Conference Call Information

Stifel Financial Corp. will host its second quarter 2017 financial results conference call on Monday, July 31, 2017, 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(877) 876-9938 and referencing conference ID #51914622.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.; and Eaton Partners LLC, and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. 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 & Trust offers 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.

4

Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s, except per share amounts)	6/30/17		6/30/16		% Change			3/31/17		% Change			6/30/17		6/30/16		% Change
Revenues:
Commissions	$	172,264	$	182,104		(5.4	)	$	175,274		(1.7	)	$	347,538	$	380,034		(8.6	)
Principal transactions		95,703		126,426		(24.3	)		116,857		(18.1	)		212,560		247,374		(14.1	)
Brokerage Revenues		267,967		308,530		(13.1	)		292,131		(8.3	)		560,098		627,408		(10.7	)
Capital raising		102,800		66,412		54.8			73,916		39.1			176,716		119,716		47.6
Advisory fees		82,461		66,713		23.6			52,936		55.8			135,397		114,067		18.7
Investment banking		185,261		133,125		39.2			126,852		46.0			312,113		233,783		33.5
Asset management and service fees		172,914		144,567		19.6			162,739		6.3			335,653		289,099		16.1
Other income		7,198		17,405		(58.6	)		8,752		(17.8	)		15,950		24,595		(35.1	)
Operating Revenue		633,340		603,627		4.9			590,474		7.3			1,223,814		1,174,885		4.2
Interest Revenue		108,951		65,780		65.6			100,953		7.9			209,904		128,607		63.2
Total Revenue		742,291		669,407		10.9			691,427		7.4			1,433,718		1,303,492		10.0
Interest Expense		16,644		17,262		(3.6	)		15,896		4.7			32,540		31,373		3.7
Net Revenue		725,647		652,145		11.3			675,531		7.4			1,401,178		1,272,119		10.1
Non-interest Expenses:
Compensation and benefits		453,876		460,023		(1.3	)		436,387		4.0			890,263		871,136		2.2
Occupancy and equipment rental		57,892		58,746		(1.5	)		52,545		10.2			110,437		116,002		(4.8	)
Communication and office supplies		34,192		37,426		(8.6	)		33,844		1.0			68,036		74,086		(8.2	)
Commissions and floor brokerage		11,232		12,145		(7.5	)		10,723		4.7			21,955		23,876		(8.0	)
Provision for loan losses		5,856		1,824		221.1			6,134		(4.5	)		11,990		6,082		97.1
Other operating expenses		79,401		66,188		20.0			56,879		39.6			136,280		121,231		12.4
Total non-interest expenses		642,449		636,352		1.0			596,512		7.7			1,238,961		1,212,413		2.2
Income before income taxes		83,198		15,793		426.8			79,019		5.3			162,217		59,706		171.7
Provision for income taxes		30,387		6,022		404.6			13,507		125.0			43,894		22,880		91.8
Net income		52,811		9,771		440.5			65,512		(19.4	)		118,323		36,826		221.3
Preferred dividends		2,344		—	nm				2,344	nm				4,688		—	nm
Net income available to common shareholders	$	50,467	$	9,771		416.5		$	63,168		(20.1	)	$	113,635	$	36,826		208.6
Earnings per common share:
Basic	$	0.74	$	0.15		393.3		$	0.92		(19.6	)	$	1.66	$	0.55		201.8
Diluted	$	0.63	$	0.13		384.6		$	0.78		(19.2	)	$	1.41	$	0.48		193.8
Weighted average number of common shares outstanding:
Basic		68,556		66,792		2.6			68,386		0.2			68,471		67,186		1.9
Diluted		80,021		75,982		5.3			80,695		(0.8	)		80,391		76,084		5.7

5

Summary Segment Results (Unaudited)
	Three Months Ended															Six Months Ended
(in 000s)	6/30/17			6/30/16			% Change			3/31/17			% Change			6/30/17			6/30/16			% Change
Net revenues:
Global Wealth Management	$	451,990		$	386,039			17.1		$	442,732			2.1		$	894,722		$	765,843			16.8
Institutional Group		276,153			260,920			5.8			237,467			16.3			513,620			502,196			2.3
Other		(2,496	)		5,186			(148.1	)		(4,668	)		(46.5	)		(7,164	)		4,080			(275.6	)
Total net revenues	$	725,647		$	652,145			11.3		$	675,531			7.4		$	1,401,178		$	1,272,119			10.1
Operating expenses:
Global Wealth Management	$	298,753		$	280,986			6.3		$	300,680			(0.6	)	$	599,433		$	567,456			5.6
Institutional Group		223,261			218,506			2.2			197,595			13.0			420,856			430,491			(2.2	)
Other		120,435			136,860			(12.0	)		98,237			22.6			218,672			214,466			2.0
Total operating expenses	$	642,449		$	636,352			1.0		$	596,512			7.7		$	1,238,961		$	1,212,413			2.2
Operating contribution:
Global Wealth Management	$	153,237		$	105,053			45.9		$	142,052			7.9		$	295,289		$	198,387			48.8
Institutional Group		52,892			42,414			24.7			39,872			32.7			92,764			71,705			29.4
Other		(122,931	)		(131,674	)		(6.6	)		(102,905	)		19.5			(225,836	)		(210,386	)		7.3
Income before income taxes	$	83,198		$	15,793			426.8		$	79,019			5.3		$	162,217		$	59,706			171.7
As a percentage of net revenues:
Compensation and benefits
Global Wealth Management		50.7			56.6						51.6						51.1			57.4
Institutional Group		59.6			58.8						60.5						60.0			60.5
Non-comp. operating expenses
Global Wealth Management		15.4			16.2						16.3						15.9			16.7
Institutional Group		21.2			25.0						22.7						21.9			25.2
Income before income taxes
Global Wealth Management		33.9			27.2						32.1						33.0			25.9
Institutional Group		19.2			16.2						16.8						18.1			14.3
Consolidated pre-tax margin (5) (6)		11.5			2.4						11.7						11.6			4.7

6

Stifel Financial Corp.
Selected Key Metrics
(Unaudited)
Financial metrics:	As of and For the Three Months Ended
(in 000s, except percentages)	6/30/17			6/30/16			3/31/17
Total assets	$	19,533,575		$	15,385,602		$	19,135,892
Total equity		2,845,309			2,490,865			2,777,903
Book value per common share	$	39.47		$	37.41		$	38.40
Return on common equity (7)		7.9	%		1.6	%		10.0	%
Non-GAAP return on common equity (1) (7)		11.1	%		8.5	%		9.5	%
Return on tangible common equity (8)		13.4	%		2.8	%		17.2	%
Non-GAAP return on tangible common equity (1) (8)		18.8	%		15.1	%		16.2	%
Tier 1 common capital ratio (9)		18.2	%		20.2	%		18.4	%
Tier 1 risk based capital ratio (9)		20.5	%		20.6	%		20.8	%
Tier 1 leverage capital ratio (9)		10.3	%		11.5	%		10.1	%
Pre-tax margin on net revenues		11.5	%		2.4	%		11.7	%
Non-GAAP pre-tax margin on net revenues (1)		16.3	%		12.9	%		14.9	%
Effective tax rate		36.5	%		38.1	%		17.1	%
Non-GAAP effective tax rate (1)		37.3	%		38.1	%		38.6	%

(in 000s, except per share amounts)	6/30/17		6/30/16			% Change			3/31/17		% Change
Statistical Information:
Financial advisors (10)		2,277		2,291	(11)		(0.6	)		2,299		(1.0	)
Locations		399		400			(0.3	)		399		—
Total client assets	$	258,097,000	$	225,983,000	(11)		14.2		$	252,448,000		2.2
Fee-based client assets	$	79,177,000	$	65,491,000			20.9		$	75,414,000		5.0
Client money market and insured product	$	17,831,000	$	17,674,000			0.9		$	19,058,000		(6.4	)
Secured client lending (12)	$	2,999,461	$	2,657,313			12.9		$	2,962,936		1.2

7

Stifel Bank & Trust - a component of Global Wealth Management
Selected Key Metrics
(Unaudited)
Selected operating data:	Three Months Ended														Six Months Ended
(in 000s, except percentages)	6/30/17			6/30/16			% Change		3/31/17			% Change			6/30/17			6/30/16			% Change
Net Interest Income	$	90,795		$	48,536			87.1	$	85,710			5.9		$	174,814		$	94,287			85.4
Bank loan loss provision		5,856			1,824			221.1		6,134			(4.5	)		11,991			6,082			97.2
Net charge-offs		2,953			—		n/m			—		n/m				2,953			—		n/m
Net Interest Margin		2.77	%		2.34	%		18.4		2.66	%		4.1			2.71	%		2.40	%		12.9

Financial Metrics:	As of
(in 000s, except percentages)	6/30/17			6/30/16			3/31/17
Total Assets	$	13,598,260		$	9,262,027		$	13,232,940
Total Equity		978,626			613,325			931,913
Total Loans, net		6,299,669			4,421,583			6,071,272
Total Deposits		12,050,474			7,881,219			11,700,961
Available-for-sale securities, at fair value		3,448,548			2,464,018			3,371,187
Held-to-maturity securities, at amortized cost		3,304,090			2,115,734			3,185,813
Residential real estate		2,248,528			1,228,234			2,214,356
Commercial and industrial		2,064,052			1,424,671			1,830,865
Securities-based loans		1,755,592			1,418,986			1,728,516
Commercial real estate		71,517			83,628			78,522
Loans held for sale		139,676			250,725			206,724
Common equity tier 1 capital ratio (9)		14.9	%		13.7	%		15.4	%
Tier 1 capital ratio (9)		14.9	%		13.7	%		15.4	%
Total capital ratio (9)		15.7	%		14.5	%		16.2	%
Tier 1 leverage ratio (9)		7.2	%		7.4	%		7.2	%
Credit Metrics:
Allowance for loan losses	$	54,202		$	35,866		$	51,298
Allowance as a percentage of retained loans		0.88	%		0.86	%		0.87	%
Net charge-offs as a percentage of average loans		0.05	%		0.00	%		0.00	%
Total nonperforming assets		21,219			34,919			28,036
Nonperforming assets as % of total assets		0.15	%		0.37	%		0.21	%

8

Global Wealth Management Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/17		6/30/16		% Change			3/31/17		% Change			6/30/17		6/30/16		% Change
Revenues:
Commissions	$	120,344	$	127,241		(5.4	)	$	120,577		(0.2	)	$	240,921	$	258,794		(6.9	)
Principal transactions		47,741		44,938		6.2			50,917		(6.2	)		98,658		86,349		14.3
Brokerage revenues		168,085		172,179		(2.4	)		171,494		(2.0	)		339,579		345,143		(1.6	)
Asset management and service fees		172,889		144,360		19.8			162,664		6.3			335,553		288,712		16.2
Net interest		95,698		54,246		76.4			89,695		6.7			185,393		106,055		74.8
Investment banking		10,641		9,502		12.0			11,854		(10.2	)		22,495		17,911		25.6
Other income		4,677		5,752		(18.7	)		7,025		(33.4	)		11,702		8,022		45.9
Net revenues		451,990		386,039		17.1			442,732		2.1			894,722		765,843		16.8
Non-interest expenses:
Compensation and benefits		229,158		218,553		4.9			228,471		0.3			457,629		439,968		4.0
Non-compensation operating expenses		69,595		62,433		11.5			72,209		(3.6	)		141,804		127,488		11.2
Total non-interest expenses		298,753		280,986		6.3			300,680		(0.6	)		599,433		567,456		5.6
Income before income taxes	$	153,237	$	105,053		45.9		$	142,052		7.9		$	295,289	$	198,387		48.8
As a percentage of net revenues:
Compensation and benefits		50.7		56.6					51.6					51.1		57.4
Non-compensation operating expenses		15.4		16.2					16.3					15.9		16.7
Income before income taxes		33.9		27.2					32.1					33.0		25.9

Institutional Group Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/17		6/30/16		% Change			3/31/17		% Change			6/30/17		6/30/16		% Change
Revenues:
Commissions	$	51,920	$	54,864		(5.4	)	$	54,697		(5.1	)	$	106,617	$	121,240		(12.1	)
Principal transactions		47,962		81,488		(41.1	)		65,940		(27.3	)		113,902		161,026		(29.3	)
Brokerage revenues		99,882		136,352		(26.7	)		120,637		(17.2	)		220,519		282,266		(21.9	)
Capital raising		92,159		56,100		64.3			62,062		48.5			154,221		100,995		52.7
Advisory fees		82,461		67,523		22.1			52,936		55.8			135,397		114,876		17.9
Investment banking		174,620		123,623		41.3			114,998		51.8			289,618		215,871		34.2
Other (13)		1,651		945		74.7			1,832		(9.9	)		3,483		4,059		(14.2	)
Net revenues		276,153		260,920		5.8			237,467		16.3			513,620		502,196		2.3
Non-interest expenses:
Compensation and benefits		164,532		153,371		7.3			143,640		14.5			308,172		303,989		1.4
Non-compensation operating expenses		58,729		65,135		(9.8	)		53,955		8.8			112,684		126,502		(10.9	)
Total non-interest expenses		223,261		218,506		2.2			197,595		13.0			420,856		430,491		(2.2	)
Income before income taxes	$	52,892	$	42,414		24.7		$	39,872		32.7		$	92,764	$	71,705		29.4
As a percentage of net revenues:
Compensation and benefits		59.6		58.8					60.5					60.0		60.5
Non-compensation operating expenses		21.2		25.0					22.7					21.9		25.2
Income before income taxes		19.2		16.2					16.8					18.1		14.3

9

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 and six months ended June 30, 2017 and 2016. 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 and six months ended June 30, 2017 and 2016 to net income and earnings per diluted common share on a non-GAAP basis for the same period.

	Three Months Ended									Six Months Ended
(in 000s)	6/30/17			6/30/16			3/31/17			6/30/17			6/30/16
GAAP net income	$	52,811		$	9,771		$	65,512		$	118,323		$	36,826
Preferred dividend		2,344			—			2,344			4,688			—
Net income available to common shareholders		50,467			9,771			63,168			113,635			36,826
Non-GAAP adjustments:
Merger-related (14)		12,400			53,934			17,114			29,514			67,344
Litigation-related (15)		20,000			—			—			20,000			—
Severance		2,420			—			4,535			6,955			—
Provision for income taxes		(13,640	)		(20,536	)		(25,355	)		(38,952	)		(25,806	)
Total non-GAAP adjustments		21,180			33,398			(3,706	)		17,517			41,538
Non-GAAP net income available to common shareholders	$	71,647		$	43,169		$	59,462		$	131,152		$	78,364
Weighted average diluted shares outstanding		80,021			75,982			80,695			80,391			76,084
GAAP earnings per diluted common share	$	0.66		$	0.13		$	0.81		$	1.47		$	0.48
Non-GAAP adjustments		0.26			0.44			(0.04	)		0.22			0.55
Non-GAAP earnings per diluted common share	$	0.92		$	0.57		$	0.77		$	1.69		$	1.03
GAAP earnings per diluted common share available to common shareholders	$	0.63		$	0.13		$	0.78		$	1.41		$	0.48
Non-GAAP adjustments		0.27			0.44			(0.04	)		0.22			0.55
Non-GAAP earnings per diluted common share available to common shareholders	$	0.90		$	0.57		$	0.74		$	1.63		$	1.03

10

Footnotes

⁽¹⁾ Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures.”

⁽²⁾ Excludes brokerage revenues included in the Other segment.

⁽³⁾ See further discussion of non-GAAP adjustments under “Non-GAAP Financial Measures.”

⁽⁴⁾ During the first quarter of 2017, the Company adopted new accounting guidance associated with stock-based compensation.

⁽⁵⁾ Non-GAAP pre-tax margin for the three months ended June 30, 2017 of 16.3% is calculated by adding litigation and merger-related and severance non-GAAP adjustments of $34.8 million to our GAAP income before income taxes of $83.2 million and dividing it by non-GAAP net revenues for the quarter of $725.6 million. Reconciliations of the Company’s GAAP results to certain non-GAAP measures is discussed within and under “Non-GAAP Financial Measures.”

⁽⁶⁾ Non-GAAP pre-tax margin for the six months ended June 30, 2017 of 15.5% is calculated by adding litigation and merger-related and severance non-GAAP adjustments of $56.5 million to our GAAP income before income taxes of $162.2 million and dividing it by non-GAAP net revenues for the quarter of $1,401.2 million. Reconciliations of the Company’s GAAP results to certain non-GAAP measures is discussed within and under “Non-GAAP Financial Measures.”

⁽⁷⁾ Computed by dividing annualized net income by average common shareholders’ equity or, in the case of non-GAAP return on common equity, computed by dividing non-GAAP net income by average 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 common shareholders' equity less goodwill and identifiable intangible assets.

⁽⁹⁾ Capital ratios are estimates at time of the Company’s earning release.

⁽¹⁰⁾ Includes 119, 127, and 121 independent contractors at June 30, 2017, June 30, 2016, and March 31, 2017, respectively.

⁽¹¹⁾ On July 1, 2016, we sold the independent contractor business acquired with the Sterne Agee transaction in June 2015. As of June 30, 2016, there were 540 independent contractors included in the disposed business unit and $11.5 billion of total client assets. These numbers have been excluded from the table.

⁽¹²⁾ Includes client margin balances held by our broker-dealer subsidiaries and securities-based loans held at Stifel Bank.

⁽¹³⁾ Includes net interest, asset management and service fees, and other income.

⁽¹⁴⁾ 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.

⁽¹⁵⁾ Primarily related to costs associated with the Company’s previously disclosed legal matters.

Investor Relations

Joel Jeffrey

(212) 271-3610, investorrelations@stifel.com

11

EX-99.2

2nd Quarter 2017 Financial Results Presentation July 31, 2017 Exhibit 99.2

Disclaimer Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “SF” or the “Company”). These statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” and similar expressions. In particular, these statements may refer to our goals, intentions, and expectations, our business plans and growth strategies, our ability to integrate and manage our acquired businesses, estimates of our risks and future costs and benefits, and forecasted demographic and economic trends relating to our industry. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We will not update these forward-looking statements, even though our situation may change in the future, unless we are obligated to do so under federal securities laws. Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in the Company’s annual and quarterly reports and from time to time in other reports filed by the Company with the Securities and Exchange Commission and include, among other things, changes in general economic and business conditions, actions of competitors, regulatory and legal actions, changes in legislation, and technology changes. Use of 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 June 30, 2017. 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 ongoing business. Management has not included costs which they believe are duplicative in the analysis below. 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.

2nd Quarter Highlights & Results Record GAAP Net Revenue of $726 million Record Net Revenue for Global Wealth Management Segment of $452 million. Record Pre-Tax Operating Income for Global Wealth Management of $153 million Record Institutional Net Revenue of $276 million Record Investment Banking Revenue of $185 million Total Assets of $19.53 billion Bank NIM of 2.77% up 11 bps from Prior Quarter

Investment Banking & Brokerage Revenue

Investment Banking & Brokerage Revenue

Segment Results

Net revenue in the GWM segment was $452 mil., up 2% sequentially & 17% Y/Y Brokerage revenue declined 4% sequentially & Y/Y Ex. Sterne IBC & Clearing, Brokerage revenue increased 13% Y/Y Net interest income increased 7% sequentially & 76% Y/Y 2,277 total FAs down sequentially from 2,299 $258.1 billion. in client AUA, up 2% sequentially $79.2 billion in Fee-based client assets, up 5% sequentially Compensation ratio was 50.7% ,down 90 bps sequentially & 590 bps Y/Y Non-comp. ratio was 15.4%, down 90 bps sequentially & 80 bps Y/Y Pre-tax margin was 33.9%, up 180 bps sequentially & 670 bps Y/Y. Global Wealth Management

Stifel Bank & Trust

Institutional Group

Balance Sheet & Net Interest Income

139% Growth 109% Growth Infrastructure Build Balance Sheet Growth

Net Interest Income Drivers: Total assets of $19.53 billion were up 2% sequentially & 27% Y/Y Average interest earning assets increased to $15.4 billion up 3% sequentially & 46% Y/Y NIM increased to 235 bps , up 11 bps sequentially & 55 bps Y/Y NIM at Stifel Bank of 277 bps increased 11 bps sequentially & 43 bps Y/Y Firm-wide NII of $92.3 mil. increased 9% sequentially and 90% Y/Y Book value per common share was $39.47 Balance Sheet & Net Interest Margin

GAAP & Non-GAAP Reconciliation

GAAP to Non-GAAP Reconciliation Three months ended June 30, 2017

Regulatory & Interest Rate Sensitivity Update

Q&A