Segment Reporting

6 Months Ended

Jun. 30, 2020

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 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 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 six months ended June 30, 2020 and 2019 is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Net revenues: (1)
Global Wealth Management	$	505,782		$	532,433		$	1,088,738		$	1,043,043
Institutional Group		398,096			270,602			730,334			531,888
Other		(8,061	)		(2,248	)		(10,221	)		(3,724	)
	$	895,817		$	800,787		$	1,808,851		$	1,571,207
Income/(loss) before income taxes:
Global Wealth Management	$	156,325		$	192,352		$	350,492		$	386,842
Institutional Group		83,049			39,302			124,789			71,506
Other		(96,414	)		(83,672	)		(217,215	)		(172,557	)
	$	142,960		$	147,982		$	258,066		$	285,791

⁽¹⁾ No individual client accounted for more than 10 percent of total net revenues for the three and six months ended June 30, 2020 or 2019.

The following table presents our company’s total assets on a segment basis at June 30, 2020 and December 31, 2019 (in thousands):

	June 30, 2020		December 31, 2019
Global Wealth Management	$	21,731,803	$	20,675,580
Institutional Group		3,629,353		3,668,723
Other		263,069		265,922
	$	25,624,225	$	24,610,225

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.

Revenues, classified by the major geographic areas in which they are earned for the three and six months ended June 30, 2020 and 2019, were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
United States	$	810,903	$	754,470	$	1,671,035	$	1,495,700
United Kingdom		63,654		43,761		101,392		70,151
Other		21,260		2,556		36,424		5,356
	$	895,817	$	800,787	$	1,808,851	$	1,571,207