<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 27, 1997
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-9305
STIFEL FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
DELAWARE 43-1273600
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
500 N. Broadway, St. Louis, Missouri 63102-2188
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 314-342-2000
(Former name, former address, and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes /X/ No / /
Shares of common stock outstanding at March 27, 1997: 4,722,491
par value $.15.
Exhibit Index is on page 15.
<PAGE> 2
Stifel Financial Corp. And Subsidiaries
Form 10-Q Index
March 27, 1997
PAGE
PART I. FINANCIAL CONDITION ----
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Financial Condition --
March 27, 1997 and December 31, 1996 3-4
Consolidated Statements of Operations --
Three Months Ended March 27, 1997 and
March 29, 1996 5
Consolidated Statements of Cash Flows--
Three Months Ended March 27, 1997 and
March 29, 1996 6-7
Notes to Consolidated Financial Statements 8-10
Item 2. Management's Discussion and Analysis of
Results of Operations and Financial Condition 11-12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 4. Submission of Matters to a Vote of
Security Holders 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
<PAGE> 3
PART I. FINANCIAL CONDITION
Item 1. Financial Statements (Unaudited)
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
(In thousands)
March 27, December 31,
1997 1996
--------- ------------
ASSETS
Cash and cash equivalents $ 6,126 $ 7,960
Cash segregated for the exclusive
benefit of customers 309 483
Receivable from brokers and dealers 18,991 14,836
Receivable from customers, net of
allowance for doubtful accounts of
$578 and $582, respectively 267,874 235,216
Securities owned, at fair value 27,464 18,913
Membership in exchanges, at cost 513 513
Office equipment and leasehold
improvements, at cost, net of
allowances for depreciation and
amortization of $10,081 and
$10,125, respectively 2,312 2,233
Goodwill, net of accumulated
amortization of $1,184 and $1,107,
respectively 4,411 4,488
Notes receivable from and advances to
officers and employees, net of
allowance for doubtful receivables
of $2,201 and $2,552, respectively
3,343 3,373
Refundable income taxes 354 358
Deferred tax asset 3,552 3,671
Other assets 7,947 9,005
-------- --------
$343,196 $301,049
======== ========
See Notes to Consolidated Financial Statements.
<PAGE> 4
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (CONTINUED)
(UNAUDITED)
(In thousands, except share amounts)
March 27, December 31,
1997 1996
--------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Short-term borrowings from banks $166,375 $132,400
Payable to brokers and dealers 62,089 47,148
Payable to customers 28,534 32,095
Securities sold, but not yet purchased,
at fair value 3,536 3,229
Drafts payable 11,897 15,287
Accrued employee compensation 10,378 14,756
Obligations under capital leases 703 581
Accounts payable and accrued expenses 10,168 7,801
Convertible debt 10,000 10,000
-------- --------
Total Liabilities 303,680 263,297
Stockholders' equity
Preferred stock -- $1 par value;
authorized 3,000,000 shares; none
issued
Common stock -- $.15 par value;
authorized 10,000,000 shares; issued
4,767,715 shares; outstanding
4,722,491 and 4,632,260 shares,
respectively 715 715
Additional paid-in capital 21,119 21,403
Retained earnings 18,238 16,733
-------- --------
40,072 38,851
Less treasury stock, at cost 45,224
and 135,455 shares, respectively 374 892
Less unamortized expense of restricted
stock awards 182 207
-------- --------
Total Stockholders' Equity 39,516 37,752
-------- --------
$343,196 $301,049
======== ========
See Notes to Consolidated Financial Statements.
<PAGE> 5
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
March 27, 1997 March 29, 1996
-------------- --------------
REVENUES
Commissions $ 11,420 $ 11,042
Principal transactions 5,266 4,788
Investment banking 7,696 1,214
Interest 4,045 3,190
Other 3,418 3,204
-------- --------
31,845 23,438
EXPENSES
Employee compensation and benefits 20,215 14,526
Commissions and floor brokerage 695 665
Communications and office supplies 1,658 1,696
Occupancy and equipment rental 1,443 1,821
Interest 2,351 1,942
Other operating expenses 2,731 2,530
-------- --------
29,093 23,180
-------- --------
INCOME BEFORE INCOME TAXES 2,752 258
Provision for income taxes 1,105 108
-------- --------
NET INCOME $ 1,647 $ 150
======== ========
Net income per share:
Primary $ 0.34 $0.03
Fully diluted $ 0.28 $0.03
Dividends declared per share $ 0.03 $0.03
Average common equivalent shares
outstanding:
Primary 4,852 4,724
Fully Diluted 6,270 6,145
See Notes to Consolidated Financial Statements.
<PAGE> 6
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)(In thousands)
Three Months Ended
March 27, 1997 March 29, 1996
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,647 $ 150
Noncash items included in earnings:
Depreciation and amortization 383 423
Provision for litigation and bad debts 450 133
Net Realized and unrealized gains on
investments (25) (18)
Bonus notes amortization 330 236
Deferred compensation 175 111
Deferred tax provision 119 300
Amortization of restricted stock awards 25 15
-------- --------
3,104 1,350
(Increase) decrease in operating receivables:
Customers (32,658) 16,838
Brokers and dealers (4,155) 1,620
(Decrease) increase in operating payables:
Customers (3,561) (11,865)
Brokers and dealers 14,941 17,696
Decrease (increase) in assets:
Cash and U.S. Government securities
segregated for the exclusive benefit
of customers 174 198
Securities owned (8,551) (3,597)
Notes receivable from officers and employees (263) (579)
Other assets 1,519 3,651
Increase (decrease) in liabilities:
Securities sold, not yet purchased 307 (1,471)
Drafts payable, accounts payable and
accrued expenses, and accrued employee
compensation (5,584) (12,818)
-------- --------
Cash (Used For) Provided By
Operating Activities $(34,727) $ 11,023
-------- --------
See Notes to Consolidated Financial Statements.
<PAGE> 7
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(UNAUDITED)(In thousands)
Three Months Ended
March 27, 1997 March 29, 1996
Cash (Used For) Provided By Operating
Activities - from previous page $(34,727) $ 11,023
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds (payments) for short-term
borrowings from banks 33,975 (11,700)
Proceeds from:
Temporary subordinated debt 8,000 - -
Employee stock purchase plan 727 617
Exercised stock options 15 - -
Dividend reinvestment plan 2 5
Payments for:
Temporary subordinated debt (8,000) - -
Settlement of long-term debt - - (760)
Purchases of stock for treasury (796) (6)
Principal payments under capital
lease obligation (103) (66)
Cash dividends (143) (134)
-------- --------
Cash Provided By (Used For)
Financing Activities 33,677 (12,044)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from:
Sale of office equipment and
leasehold improvements 3 5
Sale of investments - - 190
Payments for:
Acquisition of office equipment and
leasehold improvements (161) (90)
Acquisition of investments (626) (37)
-------- --------
Cash (Used For) Provided By
Investing Activities (784) 68
-------- --------
Decrease in cash and cash equivalents (1,834) (953)
Cash and cash equivalents -
beginning of period 7,960 6,344
-------- --------
Cash and Cash Equivalents - end of period $ 6,126 $ 5,391
======== ========
Supplemental disclosure of cash flow
information:
Income tax payments $ 49 $ 20
Interest payments $ 2,449 $ 2,317
Schedule of noncash investing and
financing activities:
Fixed assets acquired under capital lease $ 292 - -
Employee stock ownership plan shares issued $ 287 - -
See Notes to Consolidated Financial Statements.
<PAGE> 8
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except share and per share amounts)
NOTE A - BASIS OF PRESENTATION
The consolidated financial statements include the accounts of
Stifel Financial Corp. and its subsidiaries (collectively
referred to as "the Company"). The accompanying unaudited
consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form
10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. Operating results
for the three months ended March 27, 1997 are not necessarily
indicative of the results that may be expected for the year
ending December 31, 1997. For further information, refer to the
financial statements and notes thereto included in the Company's
annual report on Form 10-K for the year ended December 31, 1996.
Where appropriate, prior years' financial information has been
reclassified to conform with the current year presentation.
NOTE B - NET CAPITAL REQUIREMENT
The Company's principal subsidiary, Stifel, Nicolaus &
Company, Incorporated ("SN & Co."), is subject to the Uniform Net
Capital Rule 15c3-1 under the Securities Exchange Act of 1934
(the "rule"), which requires the maintenance of minimum net
capital, as defined. SN & Co. has elected to use the alternative
method permitted by the rule which requires maintenance of
minimum net capital equal to the greater of $250 or 2 percent of
aggregate debit items arising from customer transactions, as
defined. The rule also provides that equity capital may not be
withdrawn or cash dividends paid if resulting net capital would
be less than 5 percent of aggregate debit items.
At March 27, 1997, SN & Co. had net capital of $25,883 which
was 9% of its aggregate debit items and $20,311 in excess of
minimum net capital.
<PAGE> 9
NOTE C - PLAN OF RESTRUCTURING
During the fourth quarter of 1994, the Board of Directors of
the Company approved a restructuring and downsizing plan for the
Company which was implemented beginning in December 1994, and
involved the closing or downsizing of 31 office locations and
termination of approximately 70 officers and employees. Detail
of the activity during the first three months related to the
restructuring accruals are as follows:
Balance Adjustments Balance
at Payments Recorded at
December / Through March 27,
31, 1996 Charges Operations 1997
---------------------------------------------
Net lease commitments for
closed offices $657 $ 77 $318 $262
Such amounts are included in the consolidated statement of
financial condition under the caption of "Accounts payable and
accrued expenses" at March 27, 1997 and December 31, 1996.
During the period, the Company renegotiated a long-term lease
commitment resulting in a credit to operations which had
previously been included in the restructuring charge taken in
1994.
NOTE D - SALE OF OKLAHOMA-BASED ASSETS
On May 25, 1995, the Company sold the majority of the assets
of its Oklahoma-based operations to Capital West Financial
Corporation ("Capital West"). The Company received secured and
senior notes with a face amount of $1,850 bearing interest at a
10% annual rate with the final payments due May 24, 2000, in
connection with the sale of its Oklahoma-based assets. The notes
were recorded at a discounted rate of 17%. The Company had
deferred recognition of the gain on the sale in the amount of
$570 and had deferred recognition of any interest income related
to the notes until such time that Capital West had demonstrated
the ability to generate earnings and cash flow to fund interest
and principal payments when scheduled. The Company received
payments of $79 toward the notes. The notes receivable net of
the discount of $336 and deferred gain of $570 are included in
the statement of financial condition under the caption "Other
assets" at December 31, 1996.
<PAGE> 10
On January 2, 1997, Capital West was reorganized and a new
company, Affinity Holdings Corporation ("Affinity"), was formed.
Affinity assumed the outstanding debt of Capital West. As part
of the reorganization, Affinity exchanged the remaining balance
of the $1,850 secured and senior notes issued by Capital West for
a secured note due December 31, 2001, with a face amount of $305
bearing interest at a 10% annual rate; two hundred thousand
shares of 10% cumulative non-voting preferred stock, par value
$1.00; warrants to purchase a minority interest in Affinity; and
substantially all of the fixed assets of Affinity with a fair
value of approximately $300, which are being leased back to
Affinity. Principal and interest payments to date total $138 and
are being made monthly based upon the level of activity of
Affinity's broker-dealer subsidiary. The note receivable,
preferred stock, and lease receivable are included in the
statement of financial condition under the caption "Other assets"
at March 27, 1997. The transaction had no material impact on the
results of operations for the Company for the quarter ended March
27, 1997.
NOTE E- RECENT ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board has issued SFAS 128,
"Earnings per Share," which is to be implemented by companies
whose fiscal year ends after December 15, 1997. The adoption of
this accounting standard will not have a material impact on the
Company's reported earnings per share.
NOTE F - SUBSEQUENT EVENT
On April 22, 1997, the Company's Board of Directors declared a
regular quarterly dividend of $0.03 per share, payable on May 20,
1997 to stockholders of record May 6, 1997.
******
<PAGE> 11
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition
(in thousands, except per share amounts)
Results of Operations
Three months ended March 1997 and March 1996
The Company recorded net earnings of $1,647, or $0.34 per
primary share on total revenues of $31,845 for the first quarter
ended March 27, 1997, compared to net earnings of $150 or $0.03
per primary share on total revenues of $23,438 for the same
period one year earlier.
The increase in 1997 first quarter results over 1996 first
quarter results can be attributed primarily to the increase in
revenues. Total revenues increased $8,407 (35.9%) from $23,438
to $31,845 as retail investor activity remained strong coupled
with a solid investment banking performance.
Investment banking increased $6,482 (533.9%) from $1,214 to
$7,696 as a result of underwriting a number of secondary
offerings of trust preferred stocks for financial institutions
and REITs for mortgage banking companies. These underwritings
generated $6,400 in revenue.
Interest revenue increased $855 (26.8%) primarily as a result
of increased secured borrowings by individual investors. Total
customer receivables increased $127,816 (91.3%) from $140,058 at
March 29, 1996 to $267,874 at March 27, 1997, due largely to
increases in borrowings by certain customers.
Commissions and principal transactions increased $378 (3.4%)
from $11,042 to $11,420 and $478 (10.0%) from $4,788 to $5,266,
respectively due to continued strong markets for individual
investor activity. Other revenue increased $214 (6.7%) from
$3,204 to $3,418 principally due to continued growth of the
managed account program.
Total expenses increased $5,913 (25.5%) from $23,180 to
$29,093, primarily as a result of increased compensation and
benefits which increased $5,689 (39.2%) from $14,526 to $20,215.
The variable component of compensation and benefits increased
$5,458 (53.7%) from $10,161 to $15,619 correspondingly to
increased revenue production and increased profitability. The
fixed portion of compensation and benefits increased $231 (5.3%)
from $4,364 to $4,595 due principally to normal year to year
salary adjustments.
Occupancy and equipment rental decreased $378 (20.8%) from
$1,821 to $1,443, primarily as a result of a one time credit
related to a renegotiation of a long term office space lease
which had been previously accrued (see Note C of Notes to
Consolidated Financial Statements).
<PAGE> 12
Interest expense increased $409 (21.1%) from $1,942 to $2,351
as a result of increased borrowings for customer trading activity
and increased borrowings by the firm for underwriting activity
and increased level of securities owned. Average borrowings for
the firm increased $27,734 (41.0%) from $67,681 for the first
quarter of 1996 to $95,415 for the first quarter of 1997.
Liquidity and Capital Resources
The Company's assets are highly liquid, consisting mainly of
cash or assets readily convertible into cash. These assets are
financed primarily by the Company's equity capital, customer
credit balances, short-term bank loans, proceeds from securities
lending, long-term senior convertible notes, and other payables.
Changes in securities market volumes, related customer borrowing
demands, underwriting activity, and levels of securities
inventory affect the amount of the Company's financing
requirements. Because of the nature of the Company's business,
the changes in operating assets and liability account balances
relative to net income for any particular accounting period can
be quite large and somewhat arbitrary and therefore are not very
useful indicators of long-term trends in the Company's cash flow
from operations.
In the three months ended March 27, 1997, cash and cash
equivalents decreased $1,834 (23.0%) to $6,126 from $7,960 at
December 31, 1996. The decrease in cash was substantially a
result of cash used by operating activities of $34,727 and offset
by cash provided by financing activities of $33,677. The cash
used for operating activities was principally attributed to
increases in operating receivables and securities inventory
owned of $36,813 and $8,551, respectively, and decreases of
drafts payable, accounts payable and accrued expenses, and
accrued employee compensation of $5,584. The cash used for
operating activities was partly offset by cash provided by net
income adjusted for noncash charges of $3,104 and an increase in
operating payables of $11,380. The cash provided from financing
activity primarily consisted of proceeds for the short-term
borrowings from banks of $33,975.
SN & Co. is subject to requirements of the Securities and
Exchange Commission with regard to liquidity and capital
requirements (see Note B of the Notes to Consolidated Financial
Statements). At March 27, 1997, SN & Co. had net capital of
$25,883 which was 9% of its aggregate debit items and $20,311 in
excess of the 2% net capital requirement.
During the first quarter ended March 27, 1997, SN & Co.
obtained and repaid a temporary subordinated note in the amount
of $8,000. The subordinated note was used to finance
underwritings.
The first installment of the company's convertible debt is due
September 1, 1997, in the amount of $2,500. Management believes
that funds from operations and available informal short-term
credit arrangements of $93,625 at March 27, 1997, will provide
sufficient resources to meet the present and anticipated
financing needs.
<PAGE> 13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
There were no material changes, during the three months
ended March 27, 1997, in the legal proceedings previously
reported in the Company's Annual Report on Form 10-K for the
year ended December 31, 1996. Such information is hereby
incorporated by reference.
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Annual meeting of Stockholders was held on April 22,
1997, for the election of four directors, the adoption of
the 1997 Incentive Stock Plan, the adoption of the 1998
Employee Stock Purchase Plan and for the appointment of
Deloitte & Touche LLP as the Company's independent auditors
for the year ending December 31, 1997.
(b) Proxies for the meeting were solicited pursuant to
Regulation 14 under the Act. There was no solicitation in
opposition to the Board of Directors' proposals as listed in
the Proxy Statement and all of the proposals were passed.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit No. Sequential
(Reference to Item 601(b) Page
of Regulation S-K) Description Number
------------------------- ----------- ----------
11 Computation of 17
Earnings Per Share
27 Financial Data Schedule 18
(furnished to the Securities
and Exchange Commission for
Electronic Data Gathering,
Analysis, and Retrieval
[EDGAR] purposes only)
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the quarter
ended March 27, 1997.
<PAGE> 14
SIGNATURES
Pursuant to the requirement of Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
STIFEL FINANCIAL CORP.
(Registrant)
Date: May 8, 1997 By /s/ Gregory F. Taylor
Gregory F. Taylor
(Chief Executive Officer)
Date: May 8, 1997 By /s/ Stephen J. Bushmann
Stephen J. Bushmann
(Principal Financial and
Accounting Officer)
<PAGE> 15
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
EXHIBIT INDEX
March 27, 1997
Exhibit
Number Description
------- -----------
11 Computation of Earnings Per Share
27 Financial Data Schedule
(furnished to the Securities and Exchange
Commission for Electronic Data
Gathering, Analysis, and Retrieval
[EDGAR] purposes only)
EXHIBIT 11
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In Thousands, Except Per Share Amounts)
(UNAUDITED)
Three Months Ended
March 27, 1997 March 29, 1996
Fully Fully
Primary Diluted Primary Diluted
------- ------- ------- -------
Net income $ 1,647 $ 1,647 $ 150 $ 150
After-tax interest savings assuming
conversion of Senior Convertible
Notes (1) - - 129 - - 172
------- ------- ------- -------
Net income adjusted for after-
tax interest savings $ 1,647 $ 1,776 $ 150 $ 322
======= ======= ======= =======
Average number of common shares
outstanding during the period 4,709 4,709 4,669 4,669
Additional shares assuming exercise
of stock options (2) 143 143 55 58
Additional Shares assuming conversion
of Senior Convertible Notes (3) - - 1,418 - - 1,418
------- ------- ------- -------
Average number of common shares used
to calculate earnings per share 4,852 6,270 4,724 6,145
======= ======= ======= =======
Net earnings per share $ 0.34 $ 0.28 $ 0.03 $ 0.03(4)
======= ======= ======= =======
(1) Represents the after-tax interest savings resulting from
assumed conversion of $10,000,000 aggregate principal 11.25%
Senior Convertible Notes.
(2) Represents the number of shares of common stock issuable
on the exercise of dilutive employee stock options less the
number of shares of common stock which could have been
purchased with the proceeds from the exercise of such options
and assumed purchases of stock from the Employee Stock
Purchase Plan (ESPP). For primary earnings per share
computations, these purchases were assumed to have been made
at the average market price of the common stock during the
period or that part of the period for which the option was
outstanding or shares assumed purchased through the ESPP. For
fully diluted earnings per share computations, these purchases
were assumed to have been made at the greater of the market
price of the common stock at the end of the period or average
market price of the common stock during the period or that
part of the period for which the option was outstanding or
shares assumed purchased through the ESPP.
(3) Represents the number of shares of common stock issuable
upon conversion of $10,000,000 aggregate principal 11.25%
Senior Convertible Notes at a conversion price of $7.0536 per
share.
(4)Net fully diluted earnings per share computes to $0.05 for
the three months ended March 29, 1996. Since this is anti-
dilutive, fully diluted earnings per share is equivalent to
primary earnings per share.
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED STATEMENT OF FINANCIAL CONDITION DATED
MARCH 27, 1997 AND THE STATEMENT OF OPERATIONS FOR THE NINE
MONTHS ENDED MARCH 27, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-27-1997
<CASH> 6,435
<RECEIVABLES> 270,639
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 19,569
<INSTRUMENTS-OWNED> 27,464
<PP&E> 2,312
<TOTAL-ASSETS> 343,196
<SHORT-TERM> 166,375
<PAYABLES> 63,876
<REPOS-SOLD> 0
<SECURITIES-LOANED> 60,893
<INSTRUMENTS-SOLD> 3,536
<LONG-TERM> 10,000
<COMMON> 715
0
0
<OTHER-SE> 38,801
<TOTAL-LIABILITY-AND-EQUITY> 343,196
<TRADING-REVENUE> 5,266
<INTEREST-DIVIDENDS> 4,045
<COMMISSIONS> 11,419
<INVESTMENT-BANKING-REVENUES> 7,696
<FEE-REVENUE> 633
<INTEREST-EXPENSE> 2,351
<COMPENSATION> 20,215
<INCOME-PRETAX> 2,752
<INCOME-PRE-EXTRAORDINARY> 2,752
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,647
<EPS-PRIMARY> 0.34
<EPS-DILUTED> 0.28
</TABLE>
