| Stifel Reports Second Quarter 2026 ResultsGlobeNewswireJuly 22, 2026 ST. LOUIS, July 22, 2026 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.45 billion for the three months ended June 30, 2026, compared with $1.28 billion a year ago. Net income available to common shareholders was $217.2 million, or $1.34 per diluted common share, compared with $145.7 million, or $0.89 per diluted common share (1) for the second quarter of 2025. Non-GAAP net income available to common shareholders was $229.3 million, or $1.42 per diluted common share for the second quarter of 2026. Ronald J. Kruszewski, Chairman and Chief Executive Officer, said "Stifel delivered an outstanding second quarter and a record first half, reflecting the strength, balance, and momentum of our franchise. In the first half of 2026, we executed on our strategy by: growing revenue, improving operating leverage, expanding our balance sheet, and deploying capital where it earns the best risk-adjusted returns. Just as importantly, Stifel was ranked No. 1 in Employee Advisor Satisfaction by J.D. Power for the fourth consecutive year, reinforcing the strength of our advisor-first culture. As we look ahead, Stifel remains well positioned to build on this momentum as our advice-driven business helps clients navigate an increasingly complex world." Highlights The Company reported net revenues of $1.45 billion, the best second quarter in its history, driven by higher investment banking revenues, asset management revenues, commission revenues, and net interest income.Non-GAAP net income available to common shareholders of $1.42 per diluted common share.Investment banking revenues increased 42% over the year-ago quarter. Capital raising revenues increased 64% over the year-ago quarter.Advisory revenues increased 24% over the year-ago quarter.Asset management revenues increased 13% over the year-ago quarter.Record client assets of $580.1 billion, up 12% over the year-ago quarter.Over the last twelve months, recruited trailing twelve-month production totaled approximately $30 million.Non-GAAP pre-tax margin of 21.7%.Annualized return on tangible common equity (ROTCE) (6) of 23.6%.Tangible book value per common share (9) of $25.52, up 15.0% from prior year.Financial Summary (Unaudited)(000s)2Q 20262Q 20256m 20266m 2025GAAP Financial Highlights:Net revenues$1,450,804$1,284,286$2,928,965$2,539,755Net income(2)$217,156$145,734$459,255$189,406Diluted EPS(1) (2)$1.34$0.89$2.83$1.15Comp. ratio57.4%60.3%57.4%59.3%Non-comp. ratio22.0%23.1%21.2%29.8%Pre-tax margin20.6%16.6%21.4%10.9%Non-GAAP Financial Highlights:Net revenues$1,453,304$1,284,378$2,894,826$2,539,833Net income(2)(3)$229,299$185,626$466,776$239,862Diluted EPS(1) (2) (3)$1.42$1.14$2.87$1.46Comp. ratio(3)57.0%58.0%57.2%58.0%Non-comp. ratio(3)21.3%21.7%20.8%28.7%Pre-tax margin(4)21.7%20.3%22.0%13.3%ROCE(5)17.1%15.2%17.5%9.8%ROTCE(6)23.6%21.7%24.2%13.8%Global Wealth Management (assets and loans in millions)Net revenues$956,534$845,631$1,888,657$1,696,190Pre-tax net income$361,847$306,056$692,562$432,461Total client assets(7)$580,077$516,532Fee-based client assets(7)$239,777$206,319Bank loans(8)$24,805$21,448Institutional GroupNet revenues$480,694$419,779$975,952$804,708Equity$300,593$220,168$632,932$456,360Fixed Income$180,101$199,611$343,020$348,348Pre-tax net income$92,177$61,040$190,087$88,471Global Wealth Management Global Wealth Management reported record net revenues of $956.5 million for the three months ended June 30, 2026, compared with $845.6 million during the second quarter of 2025. Pre-tax net income was $361.8 million compared with $306.1 million in the second quarter of 2025. Highlights Ranked No. 1 in Overall Employee Advisor Satisfaction for the fourth straight year.Record client assets of $580.1 billion, up 12% over the year-ago quarter, which included $9.7 billion of client assets from the Stifel Independent Advisors business that was sold on February 2, 2026.Fee-based client assets of $239.8 billion, up 16% over the year-ago quarter, which included $4.6 billion of client assets from the Stifel Independent Advisors business that was sold on February 2, 2026.Over the last twelve months, recruited trailing twelve-month production totaled approximately $30 million.Net revenues increased 13% from a year ago: Transactional revenues increased 14% over the year-ago quarter, reflecting an increase in client activity.Asset management revenues increased 13% over the year-ago quarter, reflecting higher asset values due to improved market conditions and net new asset growth.Net interest income increased 8% over the year-ago quarter primarily driven by balance sheet growth, partially offset by lower interest rates.Total Expenses: Compensation expense as a percentage of net revenues decreased to 48.2% primarily attributable to revenue growth, partially offset by higher revenue-related compensation.Provision for credit losses was primarily impacted by loan growth in the retained portfolio and specific reserves on individual credits.Non-compensation operating expenses as a percentage of net revenues decreased to 14.0% primarily attributable to revenue growth over the year-ago quarter, partially offset by an increase in the provision for credit losses.Summary Results of Operations(000s)2Q 20262Q 2025Net revenues$956,534 $845,631 Transactional revenues207,397182,666Asset management456,596403,574Net interest income274,602254,148Investment banking8,6936,224Other income9,246(981)Total expenses $594,687 $539,575 Compensation expense460,582420,240Provision for credit losses12,5388,328Non-comp. operating expenses121,567111,007Pre-tax net income$361,847 $306,056 Compensation ratio48.2%49.7%Non-compensation ratio14.0%14.1%Pre-tax margin37.8%36.2%Institutional Group Institutional Group reported net revenues of $480.7 million for the three months ended June 30, 2026, compared with $419.8 million during the second quarter of 2025. Pre-tax net income was $92.2 million compared with $61.0 million in the second quarter of 2025. Highlights Investment banking revenues increased 42% from a year ago: Advisory revenues increased 24% from the year-ago quarter, driven by higher levels of completed advisory transactions.Equity capital raising revenues increased 121% from the year-ago quarter, driven by higher volumes and larger deal sizes.Fixed income capital raising revenues increased 18% over the year-ago quarter primarily driven by higher bond issuances reflecting a more favorable financing environment.Fixed income transactional revenues decreased 26% from a year ago: Fixed income transactional revenues were impacted by lower realized trading gains during the quarter. Second quarter 2025 results benefited from a roughly $30 million gain in our aircraft business.Equity transactional revenues decreased 4% from a year ago: Equity transactional revenues were impacted by the restructuring of our European Equities business. Those actions resulted in a $9 million reduction in equity transactional revenues year over year.Total Expenses: Compensation expense as a percentage of net revenues decreased to 59.4% primarily attributable to revenue growth, partially offset by higher revenue-related compensation.Non-compensation operating expenses as a percentage of net revenues decreased to 21.4% primarily attributable to revenue growth.Summary Results of Operations(000s) 2Q 20262Q 2025Net revenues $480,694 $419,779 Investment banking323,261227,236Advisory157,363127,305Equity capital raising102,27346,187Fixed income capital raising63,62553,744Fixed income transactional95,046129,117Equity transactional59,11061,489Other3,2771,937Total expenses $388,517 $358,739 Compensation expense285,504257,697Non-comp. operating expenses103,013101,042Pre-tax net income$92,177 $61,040 Compensation ratio59.4%61.4%Non-compensation ratio21.4%24.1%Pre-tax margin19.2%14.5%Other Matters Highlights Total assets increased $5.0 billion, or 13%, over the year-ago quarter.The Company repurchased $177.0 million, or 2.4 million shares, of its outstanding common stock during the second quarter at an average price of $73.20.Weighted average diluted shares outstanding decreased primarily due to share repurchases.The Board of Directors declared a $0.34 quarterly dividend per share, payable on June 15, 2026, to common shareholders of record on June 1, 2026.The Board of Directors declared a quarterly dividend on the outstanding shares of the Company's preferred stock, payable on June 15, 2026, to shareholders of record on June 1, 2026. 2Q 2026 2Q 2025 Common stock repurchases (1)Repurchases (000s)$177,035$87,527Number of shares (000s)2,4191,525Average price$73.20$57.38Period end shares (000s)151,589153,285Weighted average diluted shares outstanding (000s)161,631163,271 Effective tax rate 24.4%27.5%Stifel Financial Corp. (10)Tier 1 common capital ratio14.7%14.5%Tier 1 risk-based capital ratio17.3%17.5%Tier 1 leverage capital ratio11.2%10.8%Tier 1 capital (MM)$4,576$4,116Risk weighted assets (MM)$26,405$23,588Average assets (MM)$40,983$38,013Quarter end assets (MM)$44,908$39,860Agency RatingOutlookFitch RatingsBBB+StableS&P Global RatingsBBBStableConference Call Information Stifel Financial Corp. will host its second quarter 2026 financial results conference call on Wednesday, July 22, 2026, at 9:30 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 (800) 330-6710 and referencing conference ID 4490542. 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 diversified financial services firm providing wealth management, commercial and investment banking, trading, and research services to individuals, institutions, and municipalities. Founded in 1890 and headquartered in St. Louis, Missouri, the firm operates more than 400 offices across the United States and in major global financial centers. As a firm where success meets success, Stifel works closely with retail and institutional clients aiming to transform opportunities into achievement. To learn more about Stifel, please visit the Company's website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases. A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations. The information provided herein and in the financial supplement, including information provided on the Company's earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations. Cautionary Note Regarding 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. For information about the risks and important factors that could affect the Company's future results, financial condition and liquidity, see "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Forward-looking statements speak only as to the date they are made. The Company 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. Summary Results of Operations (Unaudited) Three Months EndedSix Months Ended(000s, except per share amounts)6/30/20266/30/2025% Change3/31/2026% Change6/30/20266/30/2025% ChangeRevenues:Commissions$221,462$200,66910.4$207,8346.6$429,296$394,3398.9Principal transactions140,091172,603(18.8)150,221(6.7)290,312314,263(7.6)Investment banking331,954233,46042.2341,412(2.8)673,366471,40242.8Asset management456,630403,60813.1459,457(0.6)916,087813,14912.7Other income12,5493,690240.155,679(77.5)68,22814,271378.1Operating revenues1,162,6861,014,03014.71,214,603(4.3)2,377,2892,007,42418.4Interest revenue476,093477,056(0.2)451,0495.6927,142952,688(2.7)Total revenues1,638,7791,491,0869.91,665,652(1.6)3,304,4312,960,11211.6Interest expense187,975206,800(9.1)187,4910.3375,466420,357(10.7)Net revenues1,450,8041,284,28613.01,478,161(1.9)2,928,9652,539,75515.3Non-interest expenses:Compensation and benefits833,018774,9367.5848,334(1.8)1,681,3521,507,15611.6Non-compensation operating expenses318,348295,5307.7303,7554.8622,103755,415(17.6)Total non-interest expenses1,151,3661,070,4667.61,152,089(0.1)2,303,4552,262,5711.8Income before income taxes299,438213,82040.0326,072(8.2)625,510277,184125.7Provision for income taxes72,96158,76524.274,653(2.3)147,61469,137113.5Net income226,477155,05546.1251,419(9.9)477,896208,047129.7Preferred dividends9,3219,3210.09,3200.018,64118,6410.0Net income available to common shareholders$217,156$145,73449.0$242,099(10.3)$459,255$189,406142.5Earnings per common share:(1)Basic$1.41$0.9450.0$1.56(9.6)$2.97$1.21145.5Diluted$1.34$0.8950.6$1.48(9.5)$2.83$1.15146.1Cash dividends declared per common share(1)$0.34$0.319.7$0.340.0$0.68$0.629.7Weighted average number of common shares outstanding:(1)Basic154,234155,024(0.5)155,508(0.8)154,869156,074(0.8)Diluted161,631163,271(1.0)163,444(1.1)162,556164,687(1.3)Non-GAAP Financial Measures (11) Three Months EndedSix Months Ended(000s, except per share amounts)6/30/20266/30/20256/30/20266/30/2025GAAP net income$226,477$155,055$477,896$208,047Preferred dividend9,3219,32118,64118,641Net income available to common shareholders217,156145,734459,255189,406Non-GAAP adjustments:Net revenue adjustments(12) (13)2,50092(34,139)78Merger-related(14)13,05620,28441,87132,959Restructuring and severance(15)49927,0412,33027,041Provision for income taxes(16)(3,912)(7,525)(2,541)(9,622)Total non-GAAP adjustments12,14339,8927,52150,456Non-GAAP net income available to common shareholders$229,299$185,626$466,776$239,862Weighted average diluted shares outstanding(1)161,631163,271162,556164,687GAAP earnings per diluted common share(1)$1.40$0.94$2.95$1.26Non-GAAP adjustments(1)0.080.250.040.31Non-GAAP earnings per diluted common share(1)$1.48$1.19$2.99$1.57GAAP earnings per diluted common share available to common shareholders(1)$1.34$0.89$2.83$1.15Non-GAAP adjustments(1)0.080.250.040.31Non-GAAP earnings per diluted common share available to common shareholders(1)$1.42$1.14$2.87$1.46GAAP to Non-GAAP Reconciliation (11) Three Months EndedSix Months Ended(000s)6/30/20266/30/20256/30/20266/30/2025GAAP net revenues$1,450,804$1,284,286$2,928,965$2,539,755Non-GAAP adjustments:Gain on sale of business(12)2,500--(47,284)--Litigation-related and other(13)--9213,14578Total non-GAAP adjustments2,50092(34,139)78Non-GAAP net revenues$1,453,304$1,284,378$2,894,826$2,539,833GAAP compensation and benefits$833,018$774,936$1,681,352$1,507,156As a percentage of net revenues57.4%60.3%57.4%59.3%Non-GAAP adjustments:Merger-related(14)(4,135)(2,946)(21,763)(7,002)Restructuring and severance(15)(499)(27,041)(2,330)(27,041)Total non-GAAP adjustments(4,634)(29,987)(24,093)(34,043)Non-GAAP compensation and benefits$828,384$744,949$1,657,259$1,473,113As a percentage of non-GAAP net revenues57.0%58.0%57.2%58.0%GAAP non-compensation expenses$318,348$295,530$622,103$755,415As a percentage of net revenues22.0%23.1%21.2%29.8%Non-GAAP adjustments:Merger-related(14)(8,921)(17,338)(20,108)(25,957)Non-GAAP non-compensation expenses$309,427$278,192$601,995$729,458As a percentage of non-GAAP net revenues21.3%21.7%20.8%28.7%Total adjustments before income taxes$16,055$47,417$10,062$60,078Footnotes (1)All share and per share information has been retroactively adjusted to reflect the February 2026 three-for-two stock split.(2)Represents available to common shareholders.(3)Reconciliations of the Company's GAAP results to these non-GAAP measures are discussed within and under "Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliation."(4) Non-GAAP pre-tax margin is calculated by adding total merger-related expenses (non-GAAP adjustments) and dividing it by non-GAAP net revenues. See "Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliation."(5)Return on average common equity ("ROCE"), a non-GAAP financial measure, is calculated by dividing full year or annualized net income applicable to common shareholders by average common shareholders' equity.(6)Return on average tangible common equity ("ROTCE"), a non-GAAP financial measure, is calculated by dividing full year or annualized net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders' equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets were $93.1 million and $84.3 million as of June 30, 2026, and 2025, respectively.(7)Total client assets and fee-based client assets as of June 30, 2025, include $9.7 billion and $4.6 billion, respectively, of client assets from the Stifel Independent Advisors business that was sold on February 2, 2026.(8)Includes loans held for sale.(9) Tangible book value per common share, a non-GAAP financial measure, represents shareholders' equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders' equity equals total common shareholders' equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets.(10)Capital ratios are estimates at the time of the Company's earnings release, July 22, 2026.(11) The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain "non-GAAP financial measures" during its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company's financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.(12)Gain recognized on the sale of Stifel Independent Advisors, LLC during the first quarter of 2026.(13)Primarily related to prejudgment interest recognized on legal matters.(14)Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, 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)The Company recorded severance costs associated with workforce reductions in certain of its foreign subsidiaries.(16)Primarily represents the Company's effective tax rate for the period applied to the non-GAAP adjustments.Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations COMTEX_489242472/2010/2026-07-22T07:01:25 ST. LOUIS, July 22, 2026 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.45 billion for the three months ended June 30, 2026, compared with $1.28 billion a year ago. Net income available to common shareholders was $217.2 million, or $1.34 per diluted common share, compared with $145.7 million, or $0.89 per diluted common share (1) for the second quarter of 2025. Non-GAAP net income available to common shareholders was $229.3 million, or $1.42 per diluted common share for the second quarter of 2026. Ronald J. Kruszewski, Chairman and Chief Executive Officer, said "Stifel delivered an outstanding second quarter and a record first half, reflecting the strength, balance, and momentum of our franchise. In the first half of 2026, we executed on our strategy by: growing revenue, improving operating leverage, expanding our balance sheet, and deploying capital where it earns the best risk-adjusted returns. Just as importantly, Stifel was ranked No. 1 in Employee Advisor Satisfaction by J.D. Power for the fourth consecutive year, reinforcing the strength of our advisor-first culture. As we look ahead, Stifel remains well positioned to build on this momentum as our advice-driven business helps clients navigate an increasingly complex world." Highlights The Company reported net revenues of $1.45 billion, the best second quarter in its history, driven by higher investment banking revenues, asset management revenues, commission revenues, and net interest income.Non-GAAP net income available to common shareholders of $1.42 per diluted common share.Investment banking revenues increased 42% over the year-ago quarter. Capital raising revenues increased 64% over the year-ago quarter.Advisory revenues increased 24% over the year-ago quarter.Asset management revenues increased 13% over the year-ago quarter.Record client assets of $580.1 billion, up 12% over the year-ago quarter.Over the last twelve months, recruited trailing twelve-month production totaled approximately $30 million.Non-GAAP pre-tax margin of 21.7%.Annualized return on tangible common equity (ROTCE) (6) of 23.6%.Tangible book value per common share (9) of $25.52, up 15.0% from prior year.Financial Summary (Unaudited)(000s)2Q 20262Q 20256m 20266m 2025GAAP Financial Highlights:Net revenues$1,450,804$1,284,286$2,928,965$2,539,755Net income(2)$217,156$145,734$459,255$189,406Diluted EPS(1) (2)$1.34$0.89$2.83$1.15Comp. ratio57.4%60.3%57.4%59.3%Non-comp. ratio22.0%23.1%21.2%29.8%Pre-tax margin20.6%16.6%21.4%10.9%Non-GAAP Financial Highlights:Net revenues$1,453,304$1,284,378$2,894,826$2,539,833Net income(2)(3)$229,299$185,626$466,776$239,862Diluted EPS(1) (2) (3)$1.42$1.14$2.87$1.46Comp. ratio(3)57.0%58.0%57.2%58.0%Non-comp. ratio(3)21.3%21.7%20.8%28.7%Pre-tax margin(4)21.7%20.3%22.0%13.3%ROCE(5)17.1%15.2%17.5%9.8%ROTCE(6)23.6%21.7%24.2%13.8%Global Wealth Management (assets and loans in millions)Net revenues$956,534$845,631$1,888,657$1,696,190Pre-tax net income$361,847$306,056$692,562$432,461Total client assets(7)$580,077$516,532Fee-based client assets(7)$239,777$206,319Bank loans(8)$24,805$21,448Institutional GroupNet revenues$480,694$419,779$975,952$804,708Equity$300,593$220,168$632,932$456,360Fixed Income$180,101$199,611$343,020$348,348Pre-tax net income$92,177$61,040$190,087$88,471Global Wealth Management Global Wealth Management reported record net revenues of $956.5 million for the three months ended June 30, 2026, compared with $845.6 million during the second quarter of 2025. Pre-tax net income was $361.8 million compared with $306.1 million in the second quarter of 2025. Highlights Ranked No. 1 in Overall Employee Advisor Satisfaction for the fourth straight year.Record client assets of $580.1 billion, up 12% over the year-ago quarter, which included $9.7 billion of client assets from the Stifel Independent Advisors business that was sold on February 2, 2026.Fee-based client assets of $239.8 billion, up 16% over the year-ago quarter, which included $4.6 billion of client assets from the Stifel Independent Advisors business that was sold on February 2, 2026.Over the last twelve months, recruited trailing twelve-month production totaled approximately $30 million.Net revenues increased 13% from a year ago: Transactional revenues increased 14% over the year-ago quarter, reflecting an increase in client activity.Asset management revenues increased 13% over the year-ago quarter, reflecting higher asset values due to improved market conditions and net new asset growth.Net interest income increased 8% over the year-ago quarter primarily driven by balance sheet growth, partially offset by lower interest rates.Total Expenses: Compensation expense as a percentage of net revenues decreased to 48.2% primarily attributable to revenue growth, partially offset by higher revenue-related compensation.Provision for credit losses was primarily impacted by loan growth in the retained portfolio and specific reserves on individual credits.Non-compensation operating expenses as a percentage of net revenues decreased to 14.0% primarily attributable to revenue growth over the year-ago quarter, partially offset by an increase in the provision for credit losses.Summary Results of Operations(000s)2Q 20262Q 2025Net revenues$956,534 $845,631 Transactional revenues207,397182,666Asset management456,596403,574Net interest income274,602254,148Investment banking8,6936,224Other income9,246(981)Total expenses $594,687 $539,575 Compensation expense460,582420,240Provision for credit losses12,5388,328Non-comp. operating expenses121,567111,007Pre-tax net income$361,847 $306,056 Compensation ratio48.2%49.7%Non-compensation ratio14.0%14.1%Pre-tax margin37.8%36.2%Institutional Group Institutional Group reported net revenues of $480.7 million for the three months ended June 30, 2026, compared with $419.8 million during the second quarter of 2025. Pre-tax net income was $92.2 million compared with $61.0 million in the second quarter of 2025. Highlights Investment banking revenues increased 42% from a year ago: Advisory revenues increased 24% from the year-ago quarter, driven by higher levels of completed advisory transactions.Equity capital raising revenues increased 121% from the year-ago quarter, driven by higher volumes and larger deal sizes.Fixed income capital raising revenues increased 18% over the year-ago quarter primarily driven by higher bond issuances reflecting a more favorable financing environment.Fixed income transactional revenues decreased 26% from a year ago: Fixed income transactional revenues were impacted by lower realized trading gains during the quarter. Second quarter 2025 results benefited from a roughly $30 million gain in our aircraft business.Equity transactional revenues decreased 4% from a year ago: Equity transactional revenues were impacted by the restructuring of our European Equities business. Those actions resulted in a $9 million reduction in equity transactional revenues year over year.Total Expenses: Compensation expense as a percentage of net revenues decreased to 59.4% primarily attributable to revenue growth, partially offset by higher revenue-related compensation.Non-compensation operating expenses as a percentage of net revenues decreased to 21.4% primarily attributable to revenue growth.Summary Results of Operations(000s) 2Q 20262Q 2025Net revenues $480,694 $419,779 Investment banking323,261227,236Advisory157,363127,305Equity capital raising102,27346,187Fixed income capital raising63,62553,744Fixed income transactional95,046129,117Equity transactional59,11061,489Other3,2771,937Total expenses $388,517 $358,739 Compensation expense285,504257,697Non-comp. operating expenses103,013101,042Pre-tax net income$92,177 $61,040 Compensation ratio59.4%61.4%Non-compensation ratio21.4%24.1%Pre-tax margin19.2%14.5%Other Matters Highlights Total assets increased $5.0 billion, or 13%, over the year-ago quarter.The Company repurchased $177.0 million, or 2.4 million shares, of its outstanding common stock during the second quarter at an average price of $73.20.Weighted average diluted shares outstanding decreased primarily due to share repurchases.The Board of Directors declared a $0.34 quarterly dividend per share, payable on June 15, 2026, to common shareholders of record on June 1, 2026.The Board of Directors declared a quarterly dividend on the outstanding shares of the Company's preferred stock, payable on June 15, 2026, to shareholders of record on June 1, 2026. 2Q 2026 2Q 2025 Common stock repurchases (1)Repurchases (000s)$177,035$87,527Number of shares (000s)2,4191,525Average price$73.20$57.38Period end shares (000s)151,589153,285Weighted average diluted shares outstanding (000s)161,631163,271 Effective tax rate 24.4%27.5%Stifel Financial Corp. (10)Tier 1 common capital ratio14.7%14.5%Tier 1 risk-based capital ratio17.3%17.5%Tier 1 leverage capital ratio11.2%10.8%Tier 1 capital (MM)$4,576$4,116Risk weighted assets (MM)$26,405$23,588Average assets (MM)$40,983$38,013Quarter end assets (MM)$44,908$39,860Agency RatingOutlookFitch RatingsBBB+StableS&P Global RatingsBBBStableConference Call Information Stifel Financial Corp. will host its second quarter 2026 financial results conference call on Wednesday, July 22, 2026, at 9:30 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 (800) 330-6710 and referencing conference ID 4490542. 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 diversified financial services firm providing wealth management, commercial and investment banking, trading, and research services to individuals, institutions, and municipalities. Founded in 1890 and headquartered in St. Louis, Missouri, the firm operates more than 400 offices across the United States and in major global financial centers. As a firm where success meets success, Stifel works closely with retail and institutional clients aiming to transform opportunities into achievement. To learn more about Stifel, please visit the Company's website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases. A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations. The information provided herein and in the financial supplement, including information provided on the Company's earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations. Cautionary Note Regarding 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. For information about the risks and important factors that could affect the Company's future results, financial condition and liquidity, see "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Forward-looking statements speak only as to the date they are made. The Company 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. Summary Results of Operations (Unaudited) Three Months EndedSix Months Ended(000s, except per share amounts)6/30/20266/30/2025% Change3/31/2026% Change6/30/20266/30/2025% ChangeRevenues:Commissions$221,462$200,66910.4$207,8346.6$429,296$394,3398.9Principal transactions140,091172,603(18.8)150,221(6.7)290,312314,263(7.6)Investment banking331,954233,46042.2341,412(2.8)673,366471,40242.8Asset management456,630403,60813.1459,457(0.6)916,087813,14912.7Other income12,5493,690240.155,679(77.5)68,22814,271378.1Operating revenues1,162,6861,014,03014.71,214,603(4.3)2,377,2892,007,42418.4Interest revenue476,093477,056(0.2)451,0495.6927,142952,688(2.7)Total revenues1,638,7791,491,0869.91,665,652(1.6)3,304,4312,960,11211.6Interest expense187,975206,800(9.1)187,4910.3375,466420,357(10.7)Net revenues1,450,8041,284,28613.01,478,161(1.9)2,928,9652,539,75515.3Non-interest expenses:Compensation and benefits833,018774,9367.5848,334(1.8)1,681,3521,507,15611.6Non-compensation operating expenses318,348295,5307.7303,7554.8622,103755,415(17.6)Total non-interest expenses1,151,3661,070,4667.61,152,089(0.1)2,303,4552,262,5711.8Income before income taxes299,438213,82040.0326,072(8.2)625,510277,184125.7Provision for income taxes72,96158,76524.274,653(2.3)147,61469,137113.5Net income226,477155,05546.1251,419(9.9)477,896208,047129.7Preferred dividends9,3219,3210.09,3200.018,64118,6410.0Net income available to common shareholders$217,156$145,73449.0$242,099(10.3)$459,255$189,406142.5Earnings per common share:(1)Basic$1.41$0.9450.0$1.56(9.6)$2.97$1.21145.5Diluted$1.34$0.8950.6$1.48(9.5)$2.83$1.15146.1Cash dividends declared per common share(1)$0.34$0.319.7$0.340.0$0.68$0.629.7Weighted average number of common shares outstanding:(1)Basic154,234155,024(0.5)155,508(0.8)154,869156,074(0.8)Diluted161,631163,271(1.0)163,444(1.1)162,556164,687(1.3)Non-GAAP Financial Measures (11) Three Months EndedSix Months Ended(000s, except per share amounts)6/30/20266/30/20256/30/20266/30/2025GAAP net income$226,477$155,055$477,896$208,047Preferred dividend9,3219,32118,64118,641Net income available to common shareholders217,156145,734459,255189,406Non-GAAP adjustments:Net revenue adjustments(12) (13)2,50092(34,139)78Merger-related(14)13,05620,28441,87132,959Restructuring and severance(15)49927,0412,33027,041Provision for income taxes(16)(3,912)(7,525)(2,541)(9,622)Total non-GAAP adjustments12,14339,8927,52150,456Non-GAAP net income available to common shareholders$229,299$185,626$466,776$239,862Weighted average diluted shares outstanding(1)161,631163,271162,556164,687GAAP earnings per diluted common share(1)$1.40$0.94$2.95$1.26Non-GAAP adjustments(1)0.080.250.040.31Non-GAAP earnings per diluted common share(1)$1.48$1.19$2.99$1.57GAAP earnings per diluted common share available to common shareholders(1)$1.34$0.89$2.83$1.15Non-GAAP adjustments(1)0.080.250.040.31Non-GAAP earnings per diluted common share available to common shareholders(1)$1.42$1.14$2.87$1.46GAAP to Non-GAAP Reconciliation (11) Three Months EndedSix Months Ended(000s)6/30/20266/30/20256/30/20266/30/2025GAAP net revenues$1,450,804$1,284,286$2,928,965$2,539,755Non-GAAP adjustments:Gain on sale of business(12)2,500--(47,284)--Litigation-related and other(13)--9213,14578Total non-GAAP adjustments2,50092(34,139)78Non-GAAP net revenues$1,453,304$1,284,378$2,894,826$2,539,833GAAP compensation and benefits$833,018$774,936$1,681,352$1,507,156As a percentage of net revenues57.4%60.3%57.4%59.3%Non-GAAP adjustments:Merger-related(14)(4,135)(2,946)(21,763)(7,002)Restructuring and severance(15)(499)(27,041)(2,330)(27,041)Total non-GAAP adjustments(4,634)(29,987)(24,093)(34,043)Non-GAAP compensation and benefits$828,384$744,949$1,657,259$1,473,113As a percentage of non-GAAP net revenues57.0%58.0%57.2%58.0%GAAP non-compensation expenses$318,348$295,530$622,103$755,415As a percentage of net revenues22.0%23.1%21.2%29.8%Non-GAAP adjustments:Merger-related(14)(8,921)(17,338)(20,108)(25,957)Non-GAAP non-compensation expenses$309,427$278,192$601,995$729,458As a percentage of non-GAAP net revenues21.3%21.7%20.8%28.7%Total adjustments before income taxes$16,055$47,417$10,062$60,078Footnotes (1)All share and per share information has been retroactively adjusted to reflect the February 2026 three-for-two stock split.(2)Represents available to common shareholders.(3)Reconciliations of the Company's GAAP results to these non-GAAP measures are discussed within and under "Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliation."(4) Non-GAAP pre-tax margin is calculated by adding total merger-related expenses (non-GAAP adjustments) and dividing it by non-GAAP net revenues. See "Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliation."(5)Return on average common equity ("ROCE"), a non-GAAP financial measure, is calculated by dividing full year or annualized net income applicable to common shareholders by average common shareholders' equity.(6)Return on average tangible common equity ("ROTCE"), a non-GAAP financial measure, is calculated by dividing full year or annualized net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders' equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets were $93.1 million and $84.3 million as of June 30, 2026, and 2025, respectively.(7)Total client assets and fee-based client assets as of June 30, 2025, include $9.7 billion and $4.6 billion, respectively, of client assets from the Stifel Independent Advisors business that was sold on February 2, 2026.(8)Includes loans held for sale.(9) Tangible book value per common share, a non-GAAP financial measure, represents shareholders' equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders' equity equals total common shareholders' equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets.(10)Capital ratios are estimates at the time of the Company's earnings release, July 22, 2026.(11) The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain "non-GAAP financial measures" during its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company's financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.(12)Gain recognized on the sale of Stifel Independent Advisors, LLC during the first quarter of 2026.(13)Primarily related to prejudgment interest recognized on legal matters.(14)Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, 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)The Company recorded severance costs associated with workforce reductions in certain of its foreign subsidiaries.(16)Primarily represents the Company's effective tax rate for the period applied to the non-GAAP adjustments.Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations COMTEX_489242472/2010/2026-07-22T07:01:25 |
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