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, 2000
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 (I.R.S. Employer Identification No.)
of incorporation or 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 May 1, 2000: 7,226,306, par
value $0.15.
<PAGE>2
Stifel Financial Corp. And Subsidiaries
Form 10-Q Index
March 31, 2000
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Financial Condition --
March 31, 2000 and December 31, 1999...................... 3 - 4
Consolidated Statements of Operations --
Three Months Ended March 31, 2000 and March 31, 1999...... 5
Consolidated Statements of Cash Flows--
Three Months Ended March 31, 2000 and March 31, 1999...... 6 - 7
Notes to Consolidated Financial Statements.................. 8 - 11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ........................ 12 - 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,
2000 1999
------------ ------------
ASSETS
Cash and cash equivalents $ 19,698 $ 16,861
Cash segregated for the exclusive benefit
benefit of customers 183 181
Receivable from brokers and dealers 51,080 42,037
Receivable from customers, net of
allowance for doubtful receivables of
$584 and $556, respectively 339,517 313,034
Securities owned, at fair value 39,139 28,690
Membership in exchanges, at cost 470 470
Office equipment and leasehold
improvements, at cost, net of
allowances for depreciation and
amortization of $12,094 and $11,370,
respectively 8,441 7,597
Goodwill, net of accumulated amortization
of $771 and $738, respectively 4,779 1,631
Notes receivable from and advances to
officers and employees, net of
allowance for doubtful receivables
from former employees of $535 and $701,
respectively 8,060 7,934
Deferred tax asset 3,578 2,958
Other assets 35,470 31,717
------------ ------------
Total Assets $ 510,415 $ 453,110
============ ============
<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,
2000 1999
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Short-term borrowings from banks $ 142,346 $ 122,950
Payable to brokers and dealers 165,576 147,059
Payable to customers 43,960 33,643
Securities sold, but not yet purchased,
at fair value 1,256 2,036
Drafts payable 17,231 18,065
Accrued employee compensation 16,166 18,277
Obligations under capital leases 925 1,068
Accounts payable and accrued expenses 19,280 15,985
Long-term debt 34,968 34,968
------------ ------------
Total Liabilities 441,708 394,051
Subordinated debt 1,264 - -
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 7,525,971 1,129 1,107
and 7,376,176 shares, respectively
Additional paid-in capital 44,880 43,573
Retained earnings 27,431 24,546
------------ ------------
73,440 69,226
Less:
Treasury stock, at cost, 286,678 and
724,055 shares, respectively 2,916 6,984
Unamortized expense of restricted
stock awards 320 370
Unearned employee stock ownership plan
shares, at cost, 215,535 and 219,601
shares, respectively 2,761 2,813
------------ ------------
Total Stockholders' Equity 67,443 59,059
------------ ------------
$ 510,415 $ 453,110
============ ============
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, 2000 March 31, 1999
-------------- --------------
REVENUES
Commissions $ 25,560 $ 17,265
Principal transactions 9,386 6,441
Investment banking 2,044 3,012
Interest 7,706 4,478
Other 7,521 5,821
------------ ------------
52,217 37,017
EXPENSES
Employee compensation and benefits 32,118 23,857
Communications and office supplies 2,496 2,026
Occupancy and equipment rental 3,464 2,562
Interest 4,380 1,970
Commissions and floor brokerage 995 774
Other operating expenses 3,679 3,013
------------ ------------
47,132 34,202
------------ ------------
INCOME BEFORE INCOME TAXES 5,085 2,815
Provision for income taxes 1,805 1,029
------------ ------------
NET INCOME $ 3,280 $ 1,786
============ ============
Net income per share:
Basic $ 0.47 $ 0.26
Diluted $ 0.44 $ 0.25
Dividends declared per share $ 0.03 $ 0.03
Average common equivalent shares
outstanding:
Basic 6,938 6,846
Diluted 7,527 7,186
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,
2000 1999
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 3,280 $ 1,786
Noncash items included in
earnings:
Depreciation and amortization 757 553
Bonus notes amortization 524 408
Deferred items (519) 270
Restricted stock awards amortization 269 103
------------ ------------
4,311 3,120
Decrease (increase) in assets:
Operating receivables (35,240) 10,519
Cash segregated for the exclusive
benefit of customers (2) (1)
Securities owned (10,449) 11,509
Notes receivable from officers and
employees (644) (183)
Other assets (461) 3,652
Increase (decrease) in liabilities:
Operating payables 28,835 8,221
Securities sold, but not yet purchased (780) 799
Drafts payable, accrued employee
compensation, and accounts payable
and accrued expenses (1,192) (12,314)
------------ ------------
Cash Flows From Operating Activities (15,622) 25,322
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from:
Sale of property - - 5
Cash received in acquisition of
subsidiary 2,927 - -
Sale of investments 214 - -
Payments for:
Acquisition of office equipment and
leasehold improvements (1,568) (1,050)
Acquisition of investments (799) (250)
------------ ------------
Cash Flows From Investing Activities 774 (1,295)
<PAGE>7
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
UNAUDITED (In Thousands)
Three Months Ended
March 31, March 31,
2000 1999
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term borrowings, net 19,281 (23,015)
Proceeds from:
Issuance of stock 1,319 1,432
Payments for:
Repurchase of stock (1,047) (1,853)
Repayment of subordinated borrowings (1,500) - -
Principal payments under capital
lease obligation (143) (108)
Cash dividends (225) (218)
------------ ------------
Cash Flows From Financing Activities 17,685 (23,762)
Increase in cash and cash equivalents 2,837 265
Cash and cash equivalents -
beginning of period 16,861 12,835
------------ ------------
Cash and Cash Equivalents - end of
period $ 19,698 $ 13,100
============ ============
Supplemental disclosure of cash
flow information:
Income tax payments $ 460 $ 12
Interest payments $ 3,939 $ 1,962
Schedule of noncash investing and
financing activities:
Employee stock ownership plan $ 39 $ 40
Acquisition of Hanifen,Imhoff Inc. $ 4,746 $ - -
Restricted stock awards and stock
units, net of forfeitures $ 693 $ 303
Stock Dividend $ - - $ 77
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, 2000 are not necessarily
indicative of the results that may be expected for the year
ending December 31, 2000. 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, 1999.
Where appropriate, prior year's 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, 2000, SN & Co. had net capital of $31,795,864,
which was 8.36% of its aggregate debit items, and $12,770,297 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
59 branch offices and 123 independent contractor 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.
Information concerning operations in these segments of
business is as follows (in thousands):
- -----------------------------------------------------------------
Three Months Ended March 31, 2000 1999
- -----------------------------------------------------------------
Revenues
Private Client $ 43,712 $ 30,721
Capital Markets 7,007 4,969
Other 1,498 1,327
- -----------------------------------------------------------------
Total Revenues $ 52,217 $ 37,017
=================================================================
Operating Contribution
Private Client $ 8,965 $ 5,353
Capital Markets 115 215
Other 434 404
- -----------------------------------------------------------------
Total Operating Contribution 9,514 5,972
- -----------------------------------------------------------------
Unallocated Overhead (4,429) (3,157)
- -----------------------------------------------------------------
Pre-Tax Income $ 5,085 $ 2,815
=================================================================
The Company has not disclosed asset information by segment, as
the information is not produced internally and its preparation is
impracticable.
<PAGE>10
NOTE D - EARNINGS PER SHARE ("EPS")
Basic EPS is calculated by dividing net income 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):
- -----------------------------------------------------------------------
Three Months Ended March 31, 2000 1999
- -----------------------------------------------------------------------
Income Available to Common Stockholders
Net Income $ 3,280 $ 1,786
- -----------------------------------------------------------------------
Weighted Average Shares Outstanding
Basic Weighted Average Shares Outstanding 6,938 6,846
Potential Common Shares From Employee
Benefit Plans 589 340
-------- --------
Diluted Weighted Average Shares Outstanding 7,527 7,186
- -----------------------------------------------------------------------
Basic Earnings Per Share $ 0.47 $ 0.26
Diluted Earnings Per Share $ 0.44 $ 0.25
=======================================================================
NOTE E - MERGER
On January 12, 2000, the Company completed the merger of
Hanifen, Imhoff Inc. ("HII"), a Denver-based investment banking
firm. The transaction has been accounted for as a purchase and
provides for a tax-free exchange of 516,984 shares of the
Company's stock (valued at $4,745,913) for all of the outstanding
shares of HII. The purchase price has been preliminarily
allocated to net tangible and intangible assets acquired based
on their estimated fair market values. The remaining purchase
price of $3.2 million has been recorded as goodwill,which will be
amortized over 25 years. The exchange ratio was calculated using
the respective book values of the Company and HII. The total
shares issued in the transaction were based upon the final
closing equity of HII at December 31,1999. In connection with the
transaction, certain key associates of HII executed employment
agreements containing non-compete provisions and restrictions on
the sale of the stock received in the merger and were awarded
options in the Company.The merger added 54 investment bankers,
research analysts,institutional sales associates, and traders
to the capital markets segment, as well as 24 administrative
and technical support associates.
<PAGE>11
The following unaudited pro forma financial data for the
combined operations, assuming the transaction had taken place on
January 1, 1999. The pro forma results give effect to the
amortization of goodwill and the cost savings as a result of
consolidated operations.
- --------------------------------------------------------------------------
Three Months Ended March 31, 2000 1999
(in thousands, except per share amounts)
- --------------------------------------------------------------------------
Revenues $ 52,446 $ 41,277
Net income $ 2,280 $ 1,684
Diluted earnings per share $ 0.30 $ 0.22
Diluted weighted average shares outstanding 7,595 7,703
- --------------------------------------------------------------------------
The above pro forma statements do not purport to be indicative of
the results which actually would have occurred had the
acquisition been made on January 1, 1999.
NOTE F - SUBSEQUENT EVENTS
On April 26, 2000, the Company's Board of Directors declared a
regular quarterly cash dividend of $0.03 per share, payable on
May 30, 2000 to stockholders of record as of the close of
business on May 16, 2000.
******
<PAGE>12
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
Three months ended March 2000 as compared to three months ended
March 1999
The Company recorded net earnings of $3.3 million or $0.44 per
diluted share on total revenues of $52.2 million for the three
months ended March 31, 2000 compared to net earnings of $1.8
million or $0.25 per diluted share on total revenues of $37.0
million for the same period one year earlier.
The Company's expansion of its Private Client Group, which
began in 1998, was evident in the quarter ending March 31, 2000
when compared to the same period one year earlier. Private client
branch offices, investment executives, and independent
contractors increased by 10, 96, and 25, respectively over 1999
representing increases of 17%, 24%, and 15%. Additionally,
investor confidence in the equity markets remained strong as
indicated by the increase in the major market index_The Dow Jones
Industrial Average (the "Dow") _ and increased trading volumes on
the New York Stock Exchange ("NYSE") and NASDAQ. From March 31,
1999 to March 31, 2000, the Dow increased 1,136 (10%) from 9,786
to 10,922, while trading volumes on the NYSE and NASDAQ increased
29% and 48%, respectively, over 1999 which contributed to a 43%
increase in the number of customer trades by the Company.
Total revenues increased $15.2 million (41%) primarily as a
result of growth in commissions, principal transactions, interest
revenues and other revenues which increased $8.3 million (48%),
$2.9 million (46%), $3.2 million (72%) and $1.7 million (29%)
respectively, partially offset by a decrease in investment
banking, which declined $968,000 (32%).
Revenues from commissions rose due to private client expansion
and strong markets as referred to above. The main components of
the increase were from sales of over-the-counter equities,
insurance products, and mutual funds.
Revenues from principal transactions increased principally due
to the increased sales of nontaxable fixed income products and
unit trusts and the addition of HII which generated revenues from
principal transactions of $1.3 million consisting primarily of
revenues from market making activities and sales of nontaxable
fixed income products.
Interest revenues rose as a result of increased average
borrowings by customers, combined with increases in the rates
charged to those customers.
Other revenues increased, principally due to an increase in
managed account fees, unrealized gains recorded by a non-broker
dealer subsidiary of the Company and receipt of death benefit
proceeds from an insurance policy. This increase was partially
offset by a decrease in investment advisory fees due to the sale
of Todd Investment Advisors, in the second quarter of 1999.
<PAGE>13
Investment banking revenues declined due to a decrease in
corporate finance advisory fees which resulted principally from a
significant private placement transaction completed in the first
quarter of 1999, and a decrease in municipal bond underwritings
offset by an increase in syndicate participation fees.
Total expenses increased $12.9 million (38%) over the first
quarter of 1999. All expense categories increased over the first
quarter of 1999 due to the continued expansion of the private
client group and the merger of HII unless explained otherwise.
Employee compensation and benefits, a significant portion of
the Company's total expense, increased $8.3 million (35%) in the
first three months of 2000. The increase in the variable
component of compensation of $7.3 million (42%) grew in
conjunction with the increases in revenues and profitability. The
balance of the increase resulted from private client group
expansion and the merger of HII.
Other operating expenses increased $666,000 (22%) principally
due to increases in the provision for litigation, in conjunction
with increased travel and promotion expense resulting from
private client group expansion and the merger of HII.
Interest expense increased $2.4 million (122%) due to
increased borrowings by the Company to finance customer margin
accounts, combined with increases in the rates paid on those
borrowings.
The effective tax rate for the first three months ended March
31, 2000 decreased from the same period one year earlier
primarily due to the tax effect of death benefit proceeds from an
insurance policy.
Forward-Looking Statements
The Management's Discussion and Analysis of Financial
Condition and Results of Operations, 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, 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 majority of 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, subordinated debt, 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.
<PAGE>14
During the first three months of 2000, the Company repurchased
89,742 shares, using existing board authorizations, at an average
price of $10.36 per share, to meet obligations under the
Company's employee benefit plans.
On January 12, 2000 the Company completed the merger of HII, a
Denver-based investment banking firm. The merger was completed
with the tax-free exchange of 516,984 shares of the Company for
all of the outstanding shares of HII.
Management believes the funds from operations, available
informal short-term credit arrangements, and long-term
borrowings, at March 31, 2000, 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, 2000,
Stifel, Nicolaus had net capital of approximately $31.8 million
which exceeded the minimum net capital requirements by
approximately $12.8 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, 1999.
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, 1999. 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 26, 2000. Of 7,254,247 shares issued, outstanding and
eligible to be voted at the meeting, 6,742,182 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 Four Class II Directors. The first matter
submitted was the election of four Class I director nominees to
the Board of Directors, each to continue in office until the year
2003. Upon tabulation of the votes cast, it was determined that
all four-director nominees had been elected. The voting results
are set forth below:
Name For Withheld
- -----------------------------------------------------
Charles A. Dill 6,604,047 138,135
Richard F. Ford 6,603,830 138,352
John J. Goebel 6,600,886 141,296
Walter F.Imhoff 6,631,367 110,815
- -----------------------------------------------------
Because the Company has a staggered Board, the term of
office of the following named Class I and III directors, who were
not up for election at the 2000 annual meeting, continued after
the meeting:
Class III (to continue in office until 2001)
Robert E. Lefton
James M. Oates
George H. Walker, III
Class I (to continue in office until 2002)
Bruce A. Beda
Stuart I. Greenbaum
Ronald J. Kruszewski
<PAGE>16
2. Proposal to Adopt the Equity Incentive Plan for Non-Employee
Directors (the "Incentive Plan"). The second matter, a proposal
to adopt the Incentive Plan, was approved by a majority of the
7,254,247 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 6,418,880
Against 280,847
Abstain 42,455
3.Proposal to Ratify the Appointment of Deloitte & Touche LLP
("Deloitte"). The third matter, a proposal to ratify the
appointment of Deloitte as the Company's independent auditors for
the year ending December 31, 2000, was approved by a majority of
the 7,254,247 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 6,730,275
Against 7,763
Abstain 4,144
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, 2000.
<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 15, 2000 By /s/ Ronald J. Kruszewski
--------------------
Ronald J. Kruszewski
(President and
Chief Executive Officer)
Date: May 15, 2000 By /s/ James M. Zemlyak
----------------
James M. Zemlyak
(Principal Financial and
Accounting Officer)
<PAGE>18
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
EXHIBIT INDEX
March 31, 2000
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>
EXHIBIT 27
STIFEL FINANCIAL CORP. AND SUBSIDIARIES
FINANCIAL DATA SCHEDULE
(UNAUDITED)
ARTICLE BD
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, 2000, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER> 1,000
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 19,881
<RECEIVABLES> 353,112
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 45,545
<INSTRUMENTS-OWNED> 39,139
<PP&E> 8,441
<TOTAL-ASSETS> 510,415
<SHORT-TERM> 142,346
<PAYABLES> 101,756
<REPOS-SOLD> 0
<SECURITIES-LOANED> 162,638
<INSTRUMENTS-SOLD> 1,256
<LONG-TERM> 34,968
<COMMON> 1,129
0
0
<OTHER-SE> 66,314
<TOTAL-LIABILITY-AND-EQUITY> 510,415
<TRADING-REVENUE> 9,374
<INTEREST-DIVIDENDS> 7,706
<COMMISSIONS> 25,560
<INVESTMENT-BANKING-REVENUES> 2,057
<FEE-REVENUE> 245
<INTEREST-EXPENSE> 4,380
<COMPENSATION> 32,118
<INCOME-PRETAX> 5,085
<INCOME-PRE-EXTRAORDINARY> 5,085
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,280
<EPS-BASIC> .47
<EPS-DILUTED> .44
</TABLE>
