NOTE 21 – 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 Global Wealth Management segment consists of two businesses, the Private Client Group and Stifel Bancorp, Inc. 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 broker-dealer subsidiaries and to the general public.

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 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 concerning operations in these segments of business for the three and nine months ended September 30, 2018 and 2017 is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net revenues: ⁽¹⁾
Global Wealth Management	$	498,161		$	453,558		$	1,481,063		$	1,348,280
Institutional Group		245,952			264,747			768,855			778,367
Other		(5,771	)		2,864			(18,486	)		(4,300	)
	$	738,342		$	721,169		$	2,231,432		$	2,122,347
Income/(loss) before income taxes:
Global Wealth Management	$	183,377		$	161,756		$	548,043		$	457,045
Institutional Group		34,305			51,717			114,899			144,481
Other		(77,152	)		(105,334	)		(284,511	)		(331,170	)
	$	140,530		$	108,139		$	378,431		$	270,356

⁽¹⁾	No individual client accounted for more than 10 percent of total net revenues for the three and nine months ended September 30, 2018 or 2017.

The following table presents our company’s total assets on a segment basis at September 30, 2018 and December 31, 2017 (in thousands):

	September 30, 2018		December 31, 2017
Global Wealth Management	$	19,874,154	$	17,717,617
Institutional Group		3,511,720		3,313,304
Other		374,174		353,032
	$	23,760,048	$	21,383,953

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

Revenues, classified by the major geographic areas in which they are earned for the three and nine months ended September 30, 2018 and 2017, were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
United States	$	703,746	$	680,505	$	2,113,039	$	2,017,999
United Kingdom		32,623		38,103		109,482		95,393
Other		1,973		2,561		8,911		8,955
	$	738,342	$	721,169	$	2,231,432	$	2,122,347