12
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 31, 1999
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.)
incorporationr organization)
501 N. Broadway, St. Louis, Missouri 63102-2102
(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 April 30, 1999: 6,982,685,
par value $0.15.
<PAGE>2
Stifel Financial Corp. And Subsidiaries
Form 10-Q Index
March 31, 1999
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Financial Condition --
March 31, 1999 and December 31, 1998 3 - 4
Consolidated Statements of Operations --
Three Months Ended March 31, 1999 and March 31, 1998 5
Consolidated Statements of Cash Flows--
Three Months Ended March 31, 1999 and March 31, 1998 6 - 7
Notes to Consolidated Financial Statements 8 - 10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11 -14
Item 3. Quantitative and Qualitative Disclosures about Market
Risk 15
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 4. Submission of Matters to a Vote of Security Holders 15 - 16
Item 6. Exhibit(s) and Report(s) on Form 8-K 16
Signatures 17
<PAGE>3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED) (In thousands, except par values and share amounts)
March 31, December 31,
1999 1998
----------- -----------
ASSETS
Cash and cash equivalents $ 13,100 $ 12,835
Cash segregated for the exclusive benefit
of customers 178 177
Receivable from brokers and dealers 12,055 23,946
Receivable from customers, net of
allowance for doubtful accounts of
$561 and $556, respectively 215,081 213,709
Securities owned, at fair value 27,123 38,632
Membership in exchanges, at cost 513 513
Office equipment and leasehold
improvements, at cost, net of allowances
for depreciation and amortization of
$12,837, and $12,361, respectively 5,884 5,315
Goodwill, net of accumulated amortization
of $1,798 and $1,721, respectively 3,797 3,874
Notes receivable from and advances to
officers and employees, net of
allowance for doubtful receivables of
$482 and $482, respectively 6,235 6,460
Deferred tax asset 2,943 3,213
Other assets 22,929 26,331
----------- -----------
Total Assets $ 309,838 $ 335,005
=========== ===========
<PAGE>4
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (CONTINUED)
(UNAUDITED) (In thousands, except par values and share amounts)
March 31, December 31,
1999 1998
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Short-term borrowings from banks $ 39,875 $ 62,890
Payable to brokers and dealers 107,722 104,769
Payable to customers 42,574 37,306
Securities sold, but not yet purchased, at
fair value 1,797 998
Drafts payable 14,283 18,210
Accrued employee compensation 12,352 18,320
Obligations under capital leases 740 848
Accounts payable and accrued expenses 13,363 16,117
Long-term debt 20,570 20,570
----------- -----------
Total Liabilities 253,276 280,028
Stockholders' Equity
Preferred stock -- $1 par value; authorized
3,000,000 shares; none issued - - - -
Common stock -- $0.15 par value; authorized
10,000,000 shares; issued 7,376,176
and 7,219,335 shares, respectively 1,107 1,084
Additional paid-in capital 43,260 41,867
Retained earnings 19,782 18,291
----------- -----------
64,149 61,242
Less:
Treasury stock, at cost, 371,722 and
222,743 shares, respectively 3,632 2,162
Unamortized expense of restricted
stock awards 985 1,081
Unearned employee stock ownership plan
shares, at cost, 231,800 and 235,866
shares, respectively 2,970 3,022
----------- -----------
Total Stockholders' Equity 56,562 54,977
----------- -----------
$ 309,838 $ 335,005
=========== ===========
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 31, March 31,
1999 1998
--------- ---------
REVENUES
Commissions $ 17,265 $ 13,609
Principal transactions 6,441 9,541
Investment banking 3,012 3,563
Interest 4,478 4,755
Other 5,821 4,371
--------- ---------
37,017 35,839
EXPENSES
Employee compensation and benefits 23,857 22,644
Communications and office supplies 2,026 1,965
Occupancy and equipment rental 2,563 2,105
Interest 1,970 2,539
Commissions and floor brokerage 774 649
Other operating expenses 3,013 2,519
--------- ---------
34,203 32,421
--------- ---------
INCOME BEFORE INCOME TAXES 2,814 3,418
Provision for income taxes 1,028 1,365
--------- ---------
NET INCOME $ 1,786 $ 2,053
Net income per share:
Basic $ 0.26 $ 0.30
Diluted $ 0.25 $ 0.29
Dividends declared per share $ 0.03 $ 0.03
Average common equivalent shares
outstanding:
Basic 6,846 6,781
Diluted 7,186 7,160
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 31, March 31,
1999 1998
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,786 $ 2,053
Noncash items included in
earnings:
Depreciation and amortization 553 365
Bonus notes amortization 408 431
Deferred items 270 590
Restricted stock awards amortization 103 63
---------- ----------
3,120 3,502
Decrease (increase) in assets:
Operating receivables 10,519 836
Cash segregated for the exclusive
benefit of customers (1) (1)
Securities owned 11,509 (6,102)
Notes receivable from officers and
employees (183) (1,097)
Other assets 3,652 572
Increase (decrease) in liabilities:
Operating payables 8,221 57,044
Securities sold, but not yet purchased 799 631
Drafts payable, accounts payable and
accrued expenses, and accrued
employee compensation (12,314) (8,684)
---------- ----------
Cash Flows From Operating Activities 25,322 46,701
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from:
Sale of property 5 - -
Sale of investments - - 28
Payments for:
Acquisition of office equipment and
leasehold improvements (1,050) (1,651)
Acquisition of investments (250) - -
---------- ----------
Cash Flows From Investing Activities (1,295) (1,623)
<PAGE>7
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(UNAUDITED) (In Thousands)
Three Months Ended
March 31, March 31,
1999 1998
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term borrowings, net (23,015) (51,450)
Proceeds from:
Issuance of stock 1,432 908
Payments for:
Repurchase of stock (1,853) (78)
Principal payments under capital
lease obligation (108) (88)
Cash dividends (218) (199)
---------- ----------
Cash Flows From Financing Activities (23,762) (50,907)
Increase (decrease) in cash and
cash equivalents 265 (5,829)
Cash and cash equivalents -
beginning of period 12,835 15,366
Cash and Cash Equivalents - end of period $ 13,100 $ 9,537
========== ==========
Supplemental disclosure of cash
flow information:
Income tax payments $ 12 $ 1,124
Interest payments $ 1,962 $ 2,343
Schedule of noncash investing and
financing activities:
Employee stock ownership plan $ 40 - -
Restricted stock awards and stock
units, net of forfeitures $ 303 $ 1,033
Stock Dividend $ 77 $ 30
See Notes to Consolidated Financial Statements.
<PAGE>8
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - REPORTING POLICIES
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 31, 1999 are not necessarily
indicative of the results that may be expected for the year
ending December 31, 1999. 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, 1998.
Where appropriate, prior years' financial information has been
reclassified to conform with the current year presentation.
Comprehensive Income
The Company has no components of other comprehensive income,
therefore comprehensive income equals net income.
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, as
amended (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
$250,000 or 2 percent of aggregate debit items arising from
customer transactions, as defined. The Rule also provides that
equity capital may not be withdrawn and cash dividends may not be
paid if resulting net capital would be less than 5 percent of
aggregate debit items.
At March 31, 1999, SN & Co. had net capital of $29,650,000,
which was 12.50% of its aggregate debit items, and $24,907,000 in
excess of the minimum required net capital.
<PAGE>9
NOTE C - SEGMENT REPORTING
The Company's reportable segments include private client,
capital markets, and other. The private client segment includes
157 branch offices of the Company's broker-dealer subsidiaries
located throughout the U.S., primarily in the Midwest. These
branches provide securities brokerage services, including the
sale of equities, mutual funds, fixed income products, and
insurance, to their private clients. The capital markets segment
includes management and participation in underwritings (exclusive
of sales credits, which are included in the private client
segment), mergers and acquisitions, public finance, trading,
research, and market making. Investment advisory fees and
clearing income is included in other.
Intersegment revenues and charges are eliminated between
segments. The Company evaluates the performance of its segments
and allocates resources to them based on various factors,
including prospects for growth, return on investment, and return
on revenues.
The Company has not disclosed asset information by segment, as
the information is not produced internally and its preparation is
impracticable.
Information concerning operations in these segments of
business is as follows (in thousands):
- -----------------------------------------------------------------
Three Months Ended March 31, 1999 1998
- -----------------------------------------------------------------
Revenues
Private Client $ 30,641 $ 28,829
Capital Markets 4,723 3,990
Other 1,653 3,020
- -----------------------------------------------------------------
Total Revenues $ 37,017 $ 35,839
=================================================================
Operating Contribution
Private Client $ 5,667 $ 5,622
Capital Markets 22 1,056
Other 543 233
- -----------------------------------------------------------------
Total Operating Contribution 6,232 6,911
- -----------------------------------------------------------------
Unallocated Overhead (3,418) (3,493)
- -----------------------------------------------------------------
Pre-Tax Income $ 2,814 $ 3,418
=================================================================
<PAGE>10
NOTE D - EARNINGS PER SHARE ("EPS")
Basic EPS is calculated by dividing net earnings by the
weighted-average number of common shares outstanding. Diluted EPS
is similar to basic EPS but adjusts for the effect of potential
common shares.
The components of the basic and diluted earnings per share
calculation for the three months ended March 31, are as follows
(in thousands, except per share amounts):
1999 1998
- -----------------------------------------------------------------
Income Available to Common Shareholders
Net Income $ 1,786 $ 2,053
- -----------------------------------------------------------------
Weighted Average Share Outstanding
Basic Weighted Average Shares Outstanding 6,846 6,781
Potential Common Shares From Employee
Benefit Plans 340 379
Diluted Weighted Average Shares Outstanding 7,186 7,160
- -----------------------------------------------------------------
Basic Earnings Per Share $ 0.26 $ 0.30
Diluted Earnings Per Share $ 0.25 $ 0.29
- -----------------------------------------------------------------
NOTE E - SUBSEQUENT EVENTS
On April 27, 1999, the Company's Board of Directors declared a
regular quarterly cash dividend of $0.03 per share, payable on
May 27, 1999 to stockholders of record as of the close of
business on May 11, 1999.
On April 27, 1999, the Company closed the sale of one of its
investment advisory subsidiaries, Todd Investment Advisors, Inc.,
to a subsidiary of The Western and Southern Life Insurance
Company. The sale resulted in an after-tax gain of approximately
$1.3 million.
******
<PAGE>11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
Three months ended March 1999 as compared to three months ended
March 1998
The Company recorded net earnings of $1,786,000 or $0.25 per
diluted share on total revenues of $37.0 million for the first
quarter ended March 31, 1999 compared to net earnings of
$2,053,000 or $0.29 per diluted share on total revenues of $35.8
million for the same period one year earlier.
The Company's expansion of its Private Client Group during
1998 was evidenced during the first quarter of 1999 when compared
to the same period one year earlier. Private client branch
offices, investment executives, and independent contractors
increased by 11, 19, and 37 respectively over the first quarter
of 1998. Additionally, strong markets continued to fuel private
client investment activity. Trading volumes on the NYSE and
NASDAQ increased 27% and 31% respectively over 1998's first
quarter.
Total revenues increased $1.2 million primarily as a result of
growth in commissions and other revenues which increased $3.7
million (27%) and $1.5 million (33%) respectively, offset by
decreases in principal transactions, investment banking and
interest revenues, which declined $3.1 million (32%), $551,000
(15%) and $277,000 (6%) respectively.
Revenues from commissions rose due to private client expansion
and strong markets referred to above. Main components of the
increase were from sales of over-the-counter equities, insurance
products, and mutual funds, which increased 48%, 91%, and 16%
respectively.
Revenues from principal transactions decreased primarily due
to decreases in revenues generated by the sale of unit investment
trusts. During the first quarter of 1998, the Company underwrote
a unit investment trust, which generated $3.8 million in
revenues.
Investment banking revenues declined principally due to
decreased new issue equity underwritings.
Interest revenue declined as a result of decreased borrowings
by customers, combined with decreases in the rates charged to
those customers.
Other revenues increased principally due to 40% growth in
managed account service fees, and 51% growth in money market
account fees.
<PAGE>12
Total expenses increased $1.8 million (5%) principally as a
result of increased compensation and benefits.
Employee compensation and benefits, a significant portion of
the Company's total expense, increased $1.2 million (5%) in the
first quarter of 1999. The fixed component of compensation,
primarily salaries, increased $1.1 million (21%) as a result of
normal year-to-year salary increases and the addition of 52 non-
sales associates since March 1998. The majority of personnel
increases resulted from the expansion of the Private Client
Group, related product support departments, and the Information
Technology department.
Occupancy and Equipment Rental increased $458,000 (22%),
principally due to the addition of eleven branch offices and
increased depreciation expense related to increases in
capitalized equipment to upgrade technology and support private
client expansion.
Interest expense declined $569,000 (22%) due to decreased
borrowings by the Company to finance customer margin accounts,
combined with decreases in the rates paid on those borrowings.
Other Operating Expenses increased $495,000 (20%) principally
due to increases in settlements for customer claims, professional
fees for litigation, and travel and entertainment expenses.
<PAGE>13
Year 2000
The Year 2000 issue is the result of computer programs
currently written in two-digit format, rather than four-digit, to
define the applicable year, which affects the ability of computer
systems to accurately process dates ending after December 31,
1999.
During March and April of 1999 the Company participated in the
industry-wide testing of securities processing in a simulated
Year 2000 environment with its third party vendor which has been
identified as mission critical. The third party vendor provides
record keeping and transaction processing for the Company's
customer accounts. No significant items were noted during the
testing of the trading and settlement processing. Testing of
other record keeping processing on the third-party vendor's
system was completed in January of 1999 and no significant items
were noted.
The Company's Year 2000 plan also addresses other systems,
including a variety of vendor supplied software products and a
small number of internally created AS400 mainframe programs. The
Company has substantially completed implementation of all
remedies planned for mission critical systems as of January 1999.
The Company will test its internally created AS400 mainframe
programs by June 30, 1999. There are currently no plans for
specific testing of most vendor-supplied software for which
vendors have provided assurance of Year 2000 compliance.
The Company believes that the incremental costs associated
with modifications for internal software and systems will not be
material to the Company's financial statements. However, the
interdependent nature of securities transactions and the success
of the Company's external counterparties and vendors, including
the third-party vendor mentioned above, in dealing with this
issue could significantly influence the Company's estimate of the
impact the Year 2000 will have on its business.
The Company has identified and developed contingency plans for
its internally provided mission critical systems, i.e. staffing,
back-up power sources and off-site processing. Presently the
Company is closely monitoring the development of contingency
plans by its mission critical third party vendors, in particular
the third party vendor mentioned above. Full development of these
contingency plans by the third party vendor is expected by the
third quarter. Present plans by the third party vendor include:
extra staffing; increased communications with major exchanges and
utilities over the January 1, 2000 weekend; moratoriums on staff
vacations and time off during December/January period; and
readiness to invoke normal disaster recovery plan (backup power,
hot site readiness).
<PAGE>14
Forward-Looking Statements
The Management's Financial Discussion, including the
discussion under "Year 2000," contains forward-looking statements
within the meaning of federal securities laws. Actual results are
subject to risks and uncertainties, including both those specific
to the Company and those specific to the industry which could
cause results to differ materially from those contemplated. The
risks and uncertainties include, but are not limited to, third-
party or Company failures to achieve timely, effective
remediation of the Year 2000 issues, general economic conditions,
actions of competitors, regulatory actions, changes in
legislation and technology changes. Undue reliance should not be
placed on the forward-looking statements, which speak only as of
the date of this Quarterly Report. The Company does not undertake
any obligation to publicly update any forward-looking statements.
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 notes payable, 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.
Management believes the funds from operations, available
informal short-term credit arrangements, and long-term
borrowings, at March 31, 1999, will provide sufficient resources
to meet the present and anticipated financing needs.
Stifel, Nicolaus & Company, Incorporated, the Company's
principal broker-dealer subsidiary, is subject to certain
requirements of the Securities and Exchange Commission with
regard to liquidity and capital requirements. At March 31, 1999,
Stifel, Nicolaus had net capital of approximately $29.7 million
which exceeded the minimum net capital requirements by
approximately $24.9 million.
<PAGE>15
Item 3. Quantitative and Qualitative Disclosure about Market Risk
There have been no material changes from the information
provided in the Company's Annual Report on Form 10-K for the year
ended December 31, 1998.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
There have been no material changes in the legal proceedings
previously reported in the Company's Annual Report on Form 10-K
for the year ended December 31, 1998. Such information is hereby
incorporated by reference.
Item 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of Stockholders of the Company was held on
April 28, 1999. Of 7,045,330 shares issued, outstanding and
eligible to be voted at the meeting, 6,728,432 shares,
constituting a quorum, were represented in person or by proxy at
the meeting. Four matters were submitted to a vote of security
holders at the meeting.
1.Election of Three Class I Directors. The first matter
submitted was the election of three Class I director nominees to
the Board of Directors, each to continue in office until the year
2002. Upon tabulation of the votes cast, it was determined that
all three director nominees had been elected. The voting results
are set forth below:
Name For Withheld
---- --- --------
Bruce A. Beda 6,610,975 117,457
Stuart I. Greenbaum 6,611,103 117,329
Ronald J. Kruszewski 6,611,117 117,315
Because the Company has a staggered Board, the term of
office of the following named Class II and III directors, who
were not up for election at the 1999 annual meeting, continued
after the meeting:
Class II (to continue in office until 2000)
Charles A. Dill
Richard F. Ford
John J. Goebel
Class III (to continue in office until 2001)
Robert E. Lefton
James M. Oates
George H. Walker, III
<PAGE>16
2.Proposal to Adopt the Amended and Restated Stifel Financial
Corp. 1997 Incentive Stock Plan (the "Incentive Plan"). The
second matter, a proposal to adopt the Incentive Plan, was
approved by a majority of the 7,045,330 shares of the Company's
common stock that were issued, outstanding and eligible to vote.
The voting results on this matter were as follows:
For 4,873,207
Against 742,504
Abstain 20,760
Broker Non-Votes 1,091,961
3.Proposal to Adopt the Stifel Financial Corp. 1999 Executive
Incentive Performance Plan (the "Performance Plan"). The third
matter, a proposal to adopt the Performance Plan, was approved by
a majority of the 7,045,330 shares of the Company's common stock
that were issued, outstanding and eligible to vote. The voting
results on this matter were as follows:
For 5,331,871
Against 274,847
Abstain 29,753
Broker Non-Votes 1,091,961
4.Proposal to Ratify the Appointment of Deloitte & Touche LLP
("Deloitte"). The fourth matter, a proposal to ratify the
appointment of Deloitte as the Company's independent auditors for
the year ending December 31, 1999, was approved by a majority of
the 7,045,330 shares of the Company's common stock that were
issued, outstanding and eligible to vote. The voting results on
this matter were as follows:
For 6,709,834
Against 16,240
Abstain 2,358
Item 6. Exhibit(s) and Report(s) on Form 8-K
(a) Exhibit No.
(Reference to Item 601(b)
of Regulation S-K) Description
- ------------------------------------------------------------------------
27 Financial Data Schedule
(furnished to the Securities and Exchange
Commission for Electronic Data
Gathering, Analysis, and Retrieval
[EDGAR] purposes only)
(b) Report(s) on Form 8-K
There were no reports on Form 8-K filed during the quarter
ended March 31, 1999.
<PAGE>17
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 14,1999 By /s/ Ronald J. Kruszewski
Ronald J. Kruszewski
(President and
Chief Executive Officer)
Date: May 14,1999 By /s/ James M. Zemlyak
James M. Zemlyak
(Principal Financial and
Accounting Officer)
<PAGE>18
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
EXHIBIT INDEX
March 31, 1999
Exhibit
Number Description
- -------------------------------------------------------------------------
27 Financial Data Schedule
(furnished to the Securities and Exchange
Commission for Electronic Data
Gathering, Analysis, and Retrieval
[EDGAR] purposes only)
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AND THE
CONSOLIDATED STATEMENT OF OPERATIONS OF STIFEL FINANCIAL CORP.
FILED AS PART OF THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q FOR
THE QUARTER ENDED MARCH 31, 1999, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER> 1,000
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 13,278
<RECEIVABLES> 225,419
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 7,951
<INSTRUMENTS-OWNED> 27,123
<PP&E> 5,884
<TOTAL-ASSETS> 309,838
<SHORT-TERM> 39,875
<PAYABLES> 85,130
<REPOS-SOLD> 0
<SECURITIES-LOANED> 105,904
<INSTRUMENTS-SOLD> 1,797
<LONG-TERM> 20,570
<COMMON> 1,107
0
0
<OTHER-SE> 55,455
<TOTAL-LIABILITY-AND-EQUITY> 309,838
<TRADING-REVENUE> 6,441
<INTEREST-DIVIDENDS> 4,478
<COMMISSIONS> 17,265
<INVESTMENT-BANKING-REVENUES> 3,012
<FEE-REVENUE> 900
<INTEREST-EXPENSE> 1,970
<COMPENSATION> 23,857
<INCOME-PRETAX> 2,814
<INCOME-PRE-EXTRAORDINARY> 2,814
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,786
<EPS-PRIMARY> .26
<EPS-DILUTED> .25
</TABLE>
