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What changed in STIFEL FINANCIAL CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of STIFEL FINANCIAL CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+356 added−361 removedSource: 10-K (2026-02-24) vs 10-K (2025-02-26)

Top changes in STIFEL FINANCIAL CORP's 2025 10-K

356 paragraphs added · 361 removed · 273 edited across 3 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

73 edited+25 added−14 removed167 unchanged
Biggest changeMacroeconomic conditions may also be negatively affected by domestic or international events, including natural disasters, political unrest, the indirect impact of wars and conflicts, such as the wars in Ukraine and Israel, or public health epidemics and pandemics, as well as by a number of factors in the global financial markets that may be detrimental to our operating results, including trading levels, investing, and origination activity in the securities markets, security valuations, the absolute and relative level and volatility of interest and currency rates, real estate values, the actual and perceived quality of issuers and borrowers, and the supply of and demand for loans and deposits.
Biggest changeMacroeconomic conditions may also be negatively affected by domestic or international events, including natural disasters, political unrest, the indirect impact of wars and conflicts, or public health epidemics and pandemics, as well as by several factors in the global financial markets that may be detrimental to our operating results.
While we perform extensive diligence on the banks we select to hold these deposits, a failure of one or more of these depository institutions to return these deposits could affect our operating liquidity, result in reputational damage, and impair our financial performance. We face intense competition and pricing pressures and may not be able to keep pace with technological change.
While we perform extensive diligence on the banks we select to hold these deposits, a failure of one or more of these depository institutions to return these deposits could affect our operating liquidity, result in reputational damage, and impair our financial performance. 16 We face intense competition and pricing pressures and may not be able to keep pace with technological change.
Rapidly rising rates, for example, have made and may continue to make investments in securities, such as fixed income securities and money market funds, more attractive for investors, thereby incentivizing them to reduce the cash they hold. 12 A downgrade in our credit ratings could have a material adverse effect on our operations, earnings, and financial condition.
Rapidly rising rates, for example, have made and may continue to make investments in securities, such as fixed income securities and money market funds, more attractive for investors, thereby incentivizing them to reduce the cash they hold. A downgrade in our credit ratings could have a material adverse effect on our operations, earnings, and financial condition.
Substantial legal liability could have a material adverse financial impact or cause us significant reputational harm, which, in turn, could seriously harm our business and future business prospects. 22 In addition to the foregoing financial costs and risks associated with potential liability, the costs of defending individual litigation and claims and/or regulatory matters continue to increase over time.
Substantial legal liability could have a material adverse financial impact or cause us significant reputational harm, which, in turn, could seriously harm our business and future business prospects. In addition to the foregoing financial costs and risks associated with potential liability, the costs of defending individual litigation and claims and/or regulatory matters continue to increase over time.
Additionally, an increasing number of U.S. states have proposed, or are considering, their own laws and regulations, and as a result, our activities could be subject to overlapping and conflicting regulation. We may be adversely affected by the adoption of new rules and by 21 changes in the interpretation or enforcement of existing laws, rules, and regulations.
Additionally, an increasing number of U.S. states have proposed, or are considering, their own laws and regulations, and as a result, our activities could be subject to overlapping and conflicting regulation. We may be adversely affected by the adoption of new rules and by changes in the interpretation or enforcement of existing laws, rules, and regulations.
The financial services industry has experienced an extended period of significant change in laws and regulations, as well as a high degree of scrutiny from various regulators, including the SEC, the Fed, the FDIC, the OCC, and the CFPB, in addition to stock exchanges, FINRA, and governmental authorities, such as state attorneys general.
The financial services industry has experienced an extended period of significant change in laws and regulations, as well as a high degree of scrutiny from various regulators, including the SEC, the Fed, the FDIC, the OCC, the DOL, and the CFPB, in addition to stock exchanges, FINRA, and governmental authorities, such as state attorneys general.
Our credit risk and credit losses can increase if our loans or investments are concentrated among borrowers or issuers engaged in the same or similar activities, industries, or geographies, or to 13 borrowers or issuers who as a group may be uniquely or disproportionately affected by economic or market conditions.
Our credit risk and credit losses can increase if our loans or investments are concentrated among borrowers or issuers engaged in the same or similar activities, industries, or geographies, or to borrowers or issuers who as a group may be uniquely or disproportionately affected by economic or market conditions.
Action or inaction in any of these operations, including failure to follow proper practices with respect to regulatory 14 compliance and/or corporate governance, could harm our operations and our reputation. We also invest or trade in the securities of corporations located in non-U.S. jurisdictions.
Action or inaction in any of these operations, including failure to follow proper practices with respect to regulatory compliance and/or corporate governance, could harm our operations and our reputation. We also invest or trade in the securities of corporations located in non-U.S. jurisdictions.
See “Item 1 – Business – Regulation” of this Form 10-K for additional information on the Basel III regulatory capital standards. Failure to comply with regulatory capital requirements primarily applicable to our company, our bank subsidiaries, or our broker-dealer subsidiaries would significantly harm our business.
See “Item 1 – Business – Regulation” of this Form 10-K for additional information on the Basel III regulatory capital standards. 23 Failure to comply with regulatory capital requirements primarily applicable to our company, our bank subsidiaries, or our broker-dealer subsidiaries would significantly harm our business.
Although generally collateralized by the underlying security to the transaction, we still face risk associated with changes in the market value of collateral through settlement date. We also hold certain securities, loans, and derivatives as part of our trading operations.
Although generally collateralized by the underlying security to the transaction, we still face risk associated with changes in the market value of collateral through settlement 13 date. We also hold certain securities, loans, and derivatives as part of our trading operations.
Technology has lowered barriers to entry and made it possible for fintechs to compete with larger financial institutions in providing electronic, internet-based, 16 and mobile phone-based financial solutions. This competition has grown significantly over recent years and is expected to intensify.
Technology has lowered barriers to entry and made it possible for fintechs to compete with larger financial institutions in providing electronic, internet-based, and mobile phone-based financial solutions. This competition has grown significantly over recent years and is expected to intensify.
As attempted attacks continue to evolve in scope and sophistication, we may be required to expend substantial additional resources to modify or enhance our protective measures, to investigate and remediate vulnerabilities or other exposures or to communicate about cyber attacks to our customers and regulators.
As attempted attacks continue to evolve in scope and sophistication, we may be required to expend substantial additional resources to enhance protective measures, investigate and remediate vulnerabilities or other exposures, or communicate about cyber attacks to our customers and regulators.
Periods of reduced revenue and other losses could lead to reduced profitability because certain of our expenses, including our interest expense on debt, lease expenses, and salary expenses, are fixed, and our ability to reduce them over short time periods is limited.
Periods of reduced revenue and other losses could lead to reduced profitability because certain of our expenses, 14 including our interest expense on debt, lease expenses, and salary expenses, are fixed, and our ability to reduce them over short time periods is limited.
For example, regulators such as the Fed could fail to approve a proposed transaction or such approvals could result in the imposition of conditions that could adversely affect the combined company or the expected benefits 20 of the transaction. The shareholders of a publicly traded target company could fail to approve the transaction.
For example, regulators such as the Fed could fail to approve a proposed transaction or such approvals could result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction. The shareholders of a publicly traded target company could fail to approve the transaction.
If the available funding from one or more of our contingent funding sources is not sufficient to sustain normal operating levels, we may be required to scale back or curtail our operations, such as by limiting lending, selling assets at unfavorable prices, cutting or eliminating dividend payments, or limiting our recruiting of financial advisors.
If the available funding from one or more of our contingent funding sources is not sufficient to sustain normal operating levels, we may be required to scale back or curtail our operations, such as by limiting lending, selling assets at unfavorable prices, reducing or eliminating dividend payments, or limiting our recruiting of financial advisors.
It is not always possible to deter or prevent every instance of associate misconduct, and the precautions we take to detect and prevent this activity may not be effective in all cases. If our associates engage in misconduct, our business would be adversely affected. Business growth, including through acquisitions, could increase costs and regulatory and integration risks.
It is not always possible to deter or prevent every instance of misconduct, and the precautions we take to detect and prevent this activity may not be effective in all cases. If our associates engage in misconduct, our business could be adversely affected. Business growth, including through acquisitions, could increase costs and regulatory and integration risks.
Decreases in short-term interest rates generally also result in a decrease to fees earned from third-party banks, although the magnitude of the impact may also be impacted by demand for cash balances by third-party banks and the rate paid to clients on their cash sweep balances.
Decreases in short-term interest rates generally also result in a decrease to fees earned from third-party banks, although the magnitude of the decline may also be impacted by demand for cash balances by third-party banks and the rate paid to clients on their cash sweep balances.
Our broker-dealers and bank subsidiaries are limited in their ability to lend or transact with affiliates, are subject to minimum regulatory capital and other requirements, and, in the 23 case of our broker-dealer subsidiaries, have limitations on their ability to use funds deposited with them in brokerage accounts to fund their businesses.
Our broker-dealer and bank subsidiaries are limited in their ability to lend or transact with affiliates, are subject to minimum regulatory capital and other requirements, and, in the case of our broker-dealer subsidiaries, have limitations on their ability to use funds deposited with them in brokerage accounts to fund their businesses.
Market conditions that change from time to time, thereby exposing us to market risk, include fluctuations in interest rates, equity prices, foreign exchange rates, and price deterioration or changes in value due to changes in market perception, actual credit quality of an issuer, or other factors.
Market conditions that change from time to time, thereby exposing us to market risk, include fluctuations in interest rates, equity prices, foreign exchange rates, and price deterioration or changes in value due to changes in market perception of the credit quality of an issuer, or other factors.
We are engaged in intensely competitive businesses. We compete on the basis of a number of factors, including the quality of our associates, our products and services, pricing (such as execution pricing and fee levels), technology solutions, and location and reputation in relevant markets.
We are engaged in intensely competitive businesses. We compete on the basis of a number of factors, including the quality of our associates and financial advisors, our products and services, pricing (such as execution pricing and fee levels), technology solutions, and location and reputation in relevant markets.
Such claims could also discourage potential employees who work for our competitors from joining us.
Such claims could also discourage potential 15 employees who work for our competitors from joining us.
We believe that price competition and pricing pressures in these and other areas will continue as institutional investors continue to reduce the amounts they are willing to pay, including by reducing the number of brokerage firms they use, and some of our competitors seek to obtain market share by reducing fees, commissions, or margins. We are exposed to operational risk.
We believe that price competition and pricing pressures in these and other areas will continue as institutional investors continue to reduce the amounts they are willing to pay, including by reducing the number of brokerage firms they use, and some of our competitors seek to obtain market share by reducing fees, commissions, or margins.
We also face additional cybersecurity risk related to an increased focus on mobile and cloud technologies. Our reliance on public cloud services introduces cybersecurity risks, including potential data breaches, unauthorized access, and compromised application programming interfaces (APIs) which could impact the confidentiality, integrity, or availability of our systems and data.
We also face additional cybersecurity risk related to an increased focus on mobile and cloud technologies and reliance on external service providers. Our reliance on public cloud services introduces cybersecurity risks, including potential data breaches, unauthorized access, and compromised application programming interfaces (APIs) which could impact the confidentiality, integrity, or availability of our systems and data.
Cyber attack or other security breach of our technology systems, or those of other third-party vendors we rely on, could subject us to significant liability reputational harm. Our operations rely heavily on the secure processing, storage, and transmission of sensitive and confidential financial, personal, and other information in our computer systems and networks.
Cyber attack or other security breach of our technology systems, or those of other third parties we rely on, could subject us to significant liability and reputational harm. Our operations rely heavily on the secure processing, storage, and transmission of sensitive and confidential financial, personal, and other information in our computer systems and networks.
LEGAL AND REGULATORY RISKS Financial services firms are highly regulated and are currently subject to a number of new and proposed regulations, all of which may increase our risk of financial liability and reputational harm resulting from adverse regulatory actions. Financial services firms operate in an evolving regulatory environment and are subject to extensive supervision and regulation.
LEGAL AND REGULATORY RISKS Financial services firms are highly regulated and are subject to new and proposed regulations, all of which may increase our risk of financial liability and reputational harm resulting from adverse regulatory actions. Financial services firms operate in an evolving regulatory environment and are subject to extensive supervision and regulation.
In addition, disruptions in the liquidity or transparency of the financial markets may result in our inability to sell, syndicate, or realize the value of security positions, thereby leading to increased concentrations.
In addition, disruptions in the liquidity or transparency of the financial markets may result in our inability to sell, syndicate, or realize the value of security positions, potentially leading to increased concentrations.
We seek to continuously monitor for and nimbly react to any and all such malicious cyber activity, and we develop our systems to protect the confidentiality, integrity, and availability of our data and technology infrastructure and data from misuse, misappropriation, or corruption.
We seek to continuously monitor for and nimbly react to malicious cyber activity, and we develop our systems to protect the confidentiality, integrity, and availability of our data and technology infrastructure from misuse, misappropriation, or corruption.
Although we seek to maintain a robust suite of layered information security controls, including our cyber threat analytics, data encryption, and monitoring technologies, anti-malware defenses, and vulnerability management programs, any one or combination of these controls could fail to detect, mitigate, or remediate these risks in a timely manner.
We maintain a suite of layered information security controls, including cyber threat analytics, data encryption and monitoring technologies, anti-malware defenses, and vulnerability management programs. However, any one or combination of these controls could fail to detect, mitigate, or remediate these risks in a timely manner.
Associate conduct on non-business matters, such as social issues, including the posting of information on social media or other internet forums, could be inconsistent with our policies and ethics and result in reputational harm to our business due to their employment by us or affiliation with us.
Additionally, associate misconduct on non-business matters, such as social issues, including the posting of information on social media or other internet forums, could be inconsistent with our policies and values and result in reputational harm to our business due to their employment by us or affiliation with us.
A credit rating downgrade would also result in the Company incurring a higher facility fee on its $750 million unsecured revolving credit facility agreement (the “Credit Facility”), in addition to triggering a higher interest rate applicable to any borrowings outstanding on the line as of and subsequent to such downgrade.
A credit rating downgrade would also result in the Company incurring a higher facility fee on its $1.0 billion unsecured revolving credit facility agreement (the “Credit Facility”), in addition to triggering a higher interest rate applicable to any borrowings outstanding on the line as of and subsequent to such downgrade.
The soundness of other financial institutions and intermediaries affects us. We face the risk of operational failure, termination, or capacity constraints of any of the clearing agents, exchanges, clearing houses, or other financial intermediaries that we use to facilitate our securities transactions.
We face the risk of operational failure, termination, or capacity constraints of any of the clearing agents, exchanges, clearing houses, or other financial intermediaries that we use to facilitate our securities transactions.
We also rely on numerous third-party service providers to conduct other aspects of our business operations, and we face similar risks relating to them. While we regularly conduct security assessments and external scans on these third-party vendors, we cannot be certain that their information security protocols are sufficient to withstand a cyber attack or other security breach.
We also rely on numerous third parties, including service providers that utilize cloud technologies to conduct other aspects of our business operations, and we face similar risks relating to them. While we conduct security assessments on these third-party service providers, we cannot be certain that their information security protocols are sufficient to withstand a cyber attack or other security breach.
Notwithstanding the precautions we take, if a cyber attack or other information security breach were to occur, this could jeopardize the information we confidentially maintain, or otherwise cause interruptions in our operations or those of our clients and counterparties, exposing us to liability.
Notwithstanding the precautions we take, a cyber attack or other information security breach could jeopardize confidential information we maintain and could cause interruptions in our operations or those of our clients and counterparties, exposing us to liability.
As a market-maker, we may take ownership of positions in specific securities, and these undiversified holdings concentrate the risk of market fluctuations and may result in greater losses than would be the case if our holdings were more diversified. Despite risk mitigation policies, we may incur losses as a result of positions we hold in connection with these activities.
As a market-maker, we may take ownership of positions in specific securities, and these undiversified holdings concentrate the risk of market fluctuations and may result in greater losses than would be the case if our holdings were more diversified.
A technological breakdown could also interfere with our ability to comply with financial reporting and other regulatory requirements, exposing us to potential disciplinary action by regulators.
A technological breakdown could interfere with our ability to comply with financial reporting and other regulatory requirements, potentially resulting in disciplinary action by regulators.
Despite our implementation of protective measures and endeavoring to modify them as circumstances warrant, our computer systems, software, and networks may be vulnerable to human error, equipment failure, natural disasters, power loss, unauthorized access, supply chain attacks, distributed denial of service attacks, zero-day vulnerabilities, computer viruses and other malicious code, and other events that could result in significant liability and damage to our reputation, and have an ongoing impact on the security and stability of our operations.
Despite our implementation of protective measures and our efforts 18 to modify them as circumstances warrant, our computer systems, software, and networks may remain vulnerable to human error, equipment failure, natural disasters, power loss, unauthorized access, supply-chain attacks, distributed denial-of-service (DDoS) attacks, zero-day vulnerabilities, computer viruses and other malicious code, and other events that could result in significant liability, reputational harm, and ongoing disruption to our operations.
Financial services firms are subject to numerous actual or perceived conflicts of interest, which are routinely examined by regulators and SROs such as FINRA and are often used as the basis for claims for legal liability by plaintiffs in actions against the Company. Our risk management processes include addressing potential conflicts of interest that arise in our business.
Financial services firms are subject to numerous actual or perceived conflicts of interest, which are routinely examined by regulators and SROs such as FINRA and may be used as the basis for claims for legal liability by plaintiffs in actions against the Company.
If the broker-dealers from whom we recruit new financial advisors prevent, or significantly limit, the transfer of client data and the solicitation of clients, our recruiting efforts may be adversely affected.
If the broker-dealers from whom we recruit new financial advisors prevent, or significantly limit, the transfer of client data and the solicitation of clients, our recruiting efforts may be adversely affected. Additionally, we could experience a larger number of claims against us relating to our recruiting efforts.
For additional discussion of our significant accounting estimates, policies, and standards, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates” of this Form 10-K and Note 2 of the Notes to Consolidated Financial Statements of this Form 10-K. 19 Our risk management and conflicts of interest policies and procedures may leave us exposed to unidentified or unanticipated risk.
For additional discussion of our significant accounting estimates, policies, and standards, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates” of this Form 10-K and Note 2 of the Notes to Consolidated Financial Statements of this Form 10-K.
Management of potential conflicts of interest has become increasingly complex as we expand our business activities. A perceived or actual failure to address conflicts of interest adequately could affect our reputation, the willingness of clients to transact business with us or give rise to litigation or regulatory actions.
A perceived or actual failure to address 20 conflicts of interest adequately could affect our reputation, the willingness of clients to transact business with us, or give rise to litigation or regulatory actions.
Additionally, we could experience a larger number of claims against us relating to our recruiting efforts. 15 Our business depends on fees earned from the management of client accounts and asset management fees. We have grown our asset management business in recent years, which has increased the risks associated with this business relative to our overall operations.
Our business depends on fees earned from the management of client accounts and asset management fees. We have grown our asset management business in recent years, which has increased the risks associated with this business relative to our overall operations.
Our bank deposits are primarily driven by our multi-bank sweep program in which clients’ cash deposits in their brokerage accounts are swept into FDIC-insured interest-bearing accounts at our bank subsidiaries and various third-party banks.
Our bank deposits are primarily driven by our multi-bank sweep program in which clients’ cash deposits in their brokerage accounts are swept into FDIC-insured interest-bearing accounts at our bank subsidiaries and various third-party banks. During 2025, we 12 have seen an increase in deposits from our commercial, venture banking, and fund banking clients.
If our associates improperly use or disclose confidential information provided by our clients, we could be subject to future regulatory sanctions and suffer serious harm to our reputation, financial position, current client relationships, and ability to attract future clients.
If confidential information, for example, is improperly used or disclosed by any associate, we could be subject to regulatory action and suffer serious harm to our reputation, financial position, current client relationships, and ability to attract future clients.
In addition to the SEC, various states have adopted, or are considering adopting, laws and regulations seeking to impose new standards of conduct on broker-dealers that, as written, differ from the SEC’s regulations and may lead to additional implementation costs.
In addition to the SEC, various states might consider adopting laws and regulations that would impose new standards of conduct on broker-dealers that differ from the SEC’s regulations and could lead to additional implementation costs.
Although we currently do not use AI extensively, we may in the future use, develop, and incorporate within our technology platform and services, systems and tools that incorporate AI and machine learning, including generative AI.
We use, develop, and incorporate within our technology platform and services, systems and tools that incorporate AI and machine learning, including generative AI.
Adapting or developing our technology systems to meet new regulatory requirements, client needs, and competitive demands is critical for our business. Introduction of new technology presents challenges on a regular basis.
In addition to better serving clients, the effective use of technology increases efficiency and enables us to reduce costs. Adapting or developing our technology systems to meet new regulatory requirements, client needs, and competitive demands is critical for our business. Introduction of new technology presents challenges on a regular basis.
Any of the foregoing may result in harm to our business, results of operations, or reputation. Compliance with new or changing laws, regulations, or industry standards relating to AI may impose significant operational costs and limit our ability to develop, deploy, or use AI and machine learning technologies.
Compliance with new or changing laws, regulations, or industry standards relating to AI may impose significant operational costs and limit our ability to develop, deploy, or use AI and machine learning technologies. We are exposed to operational risk.
Moreover, there has been increased regulatory focus on the disclosure practices of investment managers offering sustainable and values-based investment strategies, resulting in increased risk that we could be perceived as making inaccurate or misleading statements regarding the investment strategies of our funds and ETFs, commonly referred to as “greenwashing.” Such perceptions or accusations could damage our reputation, result in litigation or regulatory enforcement actions, and adversely affect our business.
Nonetheless, we could still face reputational risk if our investment managers are perceived as making inaccurate or misleading statements regarding the investment strategies of our funds and ETFs, commonly referred to as “greenwashing.” Such perceptions or accusations could damage our reputation, result in litigation or regulatory enforcement actions, and adversely affect our business.
See Note 18 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information. The Federal Reserve requires a bank holding company to act as a source of financial and managerial strength for its subsidiary banks.
See Note 18 of the Notes to Consolidated Financial Statements of this Form 10-K for additional information. 22 The Federal Reserve requires a bank holding company to act as a source of financial and managerial strength for its subsidiary banks and could require the Company to commit resources to its bank subsidiaries when doing so is not otherwise in the best interests of our company or its shareholders or creditors.
Our business contingency plan in place is intended to ensure we have the ability to recover our critical business functions and supporting assets, including staff and technology, in the event of a business interruption.
Increasing use of automated technology has the potential to amplify risks from manual or system processing errors, including outsourced operations. 17 Our business contingency plan in place is intended to ensure we have the ability to recover our critical business functions and supporting assets, including staff and technology, in the event of a business interruption.
Although cybersecurity incidents among financial services firms are on the rise, we have not experienced any material losses relating to cyber attacks or other information security breaches. However, the techniques used in these attacks are increasingly sophisticated, change frequently and are often not recognized until launched.
Cybersecurity incidents among financial services firms are on the rise, and the techniques used in these attacks are increasingly sophisticated, change frequently, and are often not recognized until launched. To date, we have not experienced any cybersecurity incidents that we have determined to be material to our business, financial condition, or results of operations.
There are significant technical and financial costs and risks in the development of new or enhanced applications, including the risk that we might be unable to effectively use new technologies, adapt our applications to emerging industry standards, or keep applications current as it relates to vulnerabilities and security controls. 17 Our continued success depends, in part, upon our ability to: (i) successfully maintain and upgrade the capability of our technology systems on a regular basis; (ii) maintain the quality of the information contained in our data processing and communications systems; (iii) address the needs of our clients by using technology to provide products and services that satisfy their demands; (iv) retain skilled information technology associates; and (v) ensure that our existing and new technology systems conform to regulatory requirements.
Our continued success depends, in part, upon our ability to: (i) successfully maintain and upgrade the capability of our technology systems on a regular basis; (ii) maintain the quality of the information contained in our data processing and communications systems; (iii) address the needs of our clients by using technology to provide products and services that satisfy their demands; (iv) retain skilled information technology associates; and (v) ensure that our existing and new technology systems conform to regulatory requirements.
Regulatory actions brought against us may result in judgments, settlements, fines, penalties, or other results, any of which could have a material adverse effect on our business, financial condition, reputation, or results of operations. There is no assurance that regulators will be satisfied with the policies and procedures implemented by our company and its subsidiaries.
Regulatory actions brought against us may result in judgments, settlements, fines, penalties, or other results, any of which could have a material adverse effect on our business, financial condition, reputation, or results of operations.
If any person, including any of our associates, negligently disregards or intentionally breaches our established controls with respect to client or associate data, or otherwise mismanages or misappropriates such data, we could be subject to significant monetary damages, regulatory enforcement actions, fines, and/or criminal prosecution.
If any person, including an associate or a third-party service provider, negligently disregards or intentionally breaches our controls or otherwise mismanages or misappropriates such data, we could incur significant monetary damages, regulatory enforcement actions, fines, and criminal penalties.
As a large financial institution, we have multiple stakeholders, including our shareholders, clients, associates, federal and state regulatory authorities, and the communities in which we operate, and these stakeholders will often have differing priorities and expectations regarding such matters. For example, individual U.S. states are increasingly developing differing, and sometimes conflicting, rules related to environmental, social, and governance matters.
We have multiple stakeholders, including our shareholders, clients, associates, federal, state, and foreign regulatory authorities, and the communities in which we operate, and these stakeholders will often have differing priorities and expectations regarding environmental, social, and governance matters.
In addition, as we change processes or introduce new products and services, we may not fully appreciate or identify new operational risks that may arise from such changes. Increasing use of automated technology has the potential to amplify risks from manual or system processing errors, including outsourced operations.
In addition, as we change processes or introduce new products and services, we may not fully appreciate or identify new operational risks that may arise from such changes.
Even if such lawsuits are without merit, defending against these claims could result in substantial costs and divert management time and resources. An adverse judgment could result in monetary damages, which could have a negative impact on our liquidity and financial condition.
Even if such lawsuits are without merit, defending against these claims could result in substantial costs and divert management time and resources.
A continued interruption to our telecommunications or data processing systems, or the failure to effectively update the technology we utilize, could be materially adverse to our business. Our businesses rely extensively on data processing and communications systems. In addition to better serving clients, the effective use of technology increases efficiency and enables us to reduce costs.
A continued interruption to our telecommunications or data processing systems, or the failure to effectively update the technology we utilize, could be materially adverse to our business. Our businesses rely extensively on data processing and communications systems, including both third-party and internally developed technology solutions.
During such time, we would not necessarily know the extent of the harm or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, all of which would further increase the costs and consequences of such an attack.
During an extended investigation, we may not know the full extent of the harm or the optimal remediation path, and certain errors or malicious actions could be repeated or compounded before they are identified and remediated, which could significantly increase the costs and consequences of such an attack.
Changes in tax law and regulation, or any market uncertainty caused by a change in the political environment, may also affect our clients and, directly or indirectly, our business.
While there is uncertainty around the timing of many such potential changes, such changes, or any market uncertainty caused by a potential change in governmental policies, may also affect our clients and, directly or indirectly, our business.
Likewise, our mobile and web-facing technologies expose us to risks such as data leakage, malicious applications, phishing attacks, and network level threats which pose similar risks.
Cloud-related risks may also arise from misconfiguration, weaknesses in identity and access controls, vulnerabilities in cloud workloads, and failures or outages at cloud service providers. Likewise, our mobile and web-facing technologies expose us to risks such as data leakage, malicious applications, phishing attacks, and network level threats which pose similar risks.
Depending on the circumstances giving rise to the breach, this liability may not be subject to a contractual limit or an exclusion of consequential or indirect damages. Further, lapses in cybersecurity controls, as perceived by our regulators, could lead to fines and penalties compounding monetary losses.
Depending on the circumstances giving rise to a breach, this liability may not be subject to contractual limits or exclusions for consequential or indirect damages. Lapses in our cybersecurity or privacy controls, or regulatory findings that our controls are inadequate, could lead to fines, penalties, or other remediation obligations that would compound monetary losses.
In addition, unauthorized disclosure of sensitive or confidential client or associate data, whether through system failure, associate negligence, fraud, or misappropriation, could damage our reputation and cause us to lose clients and related revenue. Potential liability in the event of a security breach of client data could be significant.
Unauthorized disclosure of sensitive or confidential client or associate data, whether through system failure, human error, fraud, or third-party compromise, could damage our reputation, cause loss of clients and related revenue, and expose us to substantial liability.
We are subject to risks relating to environmental, social, and governance matters that could adversely affect our reputation, business, financial condition, and results of operations. We are subject to a variety of risks, including reputational risk, associated with environmental, social, and governance matters.
An adverse judgment could result in monetary damages, which could have a negative impact on our liquidity and financial condition. 21 We are subject to risks relating to environmental, social, and governance matters that could adversely affect our reputation, business, financial condition, and results of operations.
If we take action in conflict with one or another of those stakeholders’ expectations, we could experience an increase in client complaints, a loss of business, or reputational harm. We could also face negative publicity or reputational harm based on the identity of those with whom we choose to do business.
Certain of our clients might also require that we implement additional procedures or standards in these areas in order to continue to do business with them. If we take action in conflict with one or another of those stakeholders’ expectations, we could experience an increase in client complaints, a loss of business, or reputational harm.
Further, successful cyber attacks at other large financial institutions or other market participants, whether or not we are affected, could lead to a 18 general loss of confidence in financial institutions that could negatively affect us, including harming the market perception of the effectiveness of our security measures or the financial system in general, which could result in reduced use of our financial products and services.
In addition, successful cyber attacks at other large financial institutions or market participants, whether or not we are directly affected, could erode confidence in financial institutions generally and in our firm specifically, including perceptions of the effectiveness of our security measures, which could reduce demand for our financial products and services.
In addition, although we maintain insurance coverage that may, subject to terms and conditions, cover certain aspects of cyber and information security risks, such insurance coverage may be insufficient to cover all losses, such as litigation costs or financial losses that exceed our policy limits or are not covered under any of our current insurance policies.
In addition, although we maintain cybersecurity insurance as one component of our broader risk-mitigation strategy, coverage is subject to policy terms, exclusions, and limits and may be insufficient to cover all losses, including litigation costs or losses that exceed policy limits or are otherwise excluded.
Any adverse publicity in connection with environmental, social, and governance issues could damage our reputation, our ability to attract and retain clients and associates, compete effectively, and grow our business. In addition, proxy advisory firms and certain institutional investors who manage investments in public companies may integrate environmental, social, and governance factors into their investment analysis.
In addition, proxy advisory firms and certain institutional investors who manage investments in public companies may integrate environmental, social, and governance factors into their investment analysis. Frameworks for evaluating such matters remain underdeveloped and vary widely, which may lead to misperceptions of our policies and practices.
Further, in light of the high volume of transactions we process, use of remote work, the large number of our clients, partners, and counterparties, and the increasing sophistication of malicious actors, a cyber attack could occur. Moreover, any such cyber attack may persist for an extended period of time without detection.
We maintain incident response, business continuity, and remediation programs designed to mitigate these impacts and to support timely regulatory reporting and recovery. Given our high transaction volumes, remote-work environment, and the large number of clients, partners, and counterparties we serve, a cyber attack could occur. Such an attack may persist for an extended period without detection.
There is a risk that our associates could engage in misconduct that adversely affects our business. For example, our investment banking business often requires that we deal with confidential matters of great significance to our clients. Our associates interact with clients, customers, and counterparties on an ongoing basis.
There is a risk that our associates could engage in misconduct, fraudulent, unauthorized, or illegal acts, or noncompliance with firm policies or regulations that adversely affects our business and/or results in substantial liability. For example, our investment banking business often requires that we appropriately manage the use of our institutional clients’ non-public, confidential information.
Cyber attacks can originate from a variety of sources, including threat actors affiliated with foreign governments, organized crime, or terrorist organizations.
We also rely on numerous third-party service providers to conduct aspects of our business operations and face similar risks relating to those third parties, including operational disruptions, security weaknesses, delayed incident notification, and supply chain risks. Cyber attacks can originate from a variety of sources, including threat actors affiliated with foreign governments, organized crime, or terrorist organizations.
Moreover, the subjective nature of methods used by various stakeholders to assess a company with respect to environmental, social, and governance criteria could result in erroneous perceptions or a misrepresentation of our actual policies and practices in these areas. Organizations that provide ratings information to investors on such matters may also assign unfavorable ratings to our company.
Organizations that provide ratings information to investors on such matters may also assign unfavorable ratings to Stifel. Stakeholders continue to focus on environmental, social, and governance issues in corporate actions, such as the election of directors and approval of executive compensation.
All associates are expected to exhibit the behaviors and ethics that are reflected in our framework of principles, policies, and technology to protect both our own information as well as that of our clients.
Similarly, many of our associates interact routinely with clients and counterparties and are expected to comply with our policies and procedures to protect both our clients’ confidential information and our own.
Removed
In addition, our results of operations may be impacted by changes resulting from different political philosophies governing individual and corporate taxation, as well as regulation, which may result from the outcome of the recent federal elections in the U.S.
Added
In addition, our results of operations may be impacted by governmental policy changes and/or regulatory reform in multiple areas, including tax, international trade, immigration, healthcare, labor, infrastructure, and energy.
Removed
For example, changes to tax laws and regulations, including various provisions of the TCJA which will expire in 2025 if not extended, may negatively impact our effective income tax rate, financial results, or the amount of any tax assets or liabilities.
Added
Furthermore, over the last several years, the federal government has shut down multiple times, in some cases for prolonged periods, and it is possible that the federal government may shut down again in the future.
Removed
Many of these deposits exceed FDIC-insured limits. Recent events in the financial services industry, including the failure of certain banks, have increased counterparty credit risk.
Added
Although the recent government shutdown is not expected to materially affect our results of operations, any prolonged future shutdown could significantly impact business and economic conditions generally or specifically in our key markets, which could have a material adverse effect on our results and financial condition.
Removed
We endeavor to design and implement policies and procedures to identify such cyber attacks as quickly as possible; however, we expect that any investigation of a cyber attack would take substantial amounts of time, and that there may be extensive delays before we obtain full and reliable information.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+2 added−0 removed5 unchanged
Biggest changeITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOC KHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is traded on the New York Stock Exchange and Chicago Stock Exchange under the symbol “SF.” The closing sale price of our common stock as reported on the New York Stock Exchange on January 31, 2025, was $115.85.
Biggest changeMARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOC KHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our common stock is traded on the New York Stock Exchange under the symbol “SF.” On January 26, 2026, our Board declared a 50% stock dividend, in the form of a three-for-two stock split, of our common stock payable on February 26, 2026, to shareholders of record as of February 12, 2026.
The following table sets forth information with respect to purchases made by or on behalf of Stifel Financial Corp. or any “affiliated purchaser” (as defined in Rule 10b-10(a)(3) under the Securities Exchange Act of 1934, as amended), of our common stock during the quarter ended December 31, 2024.
The following table sets forth information with respect to purchases made by or on behalf of Stifel Financial Corp. or any “affiliated purchaser” (as defined in Rule 10b-10(a)(3) under the Securities Exchange Act of 1934, as amended), of our common stock during the quarter ended December 31, 2025.
Invesco Ltd. Northern Trust Corp. Ameriprise Financial, Inc. Jefferies Financial Group Inc. Piper Sandler Companies Evercore Inc. Lazard Ltd. Raymond James Financial, Inc. Franklin Resources, Inc. LPL Financial Holdings Inc. T. Rowe Price Group, Inc. Houlihan Lokey, Inc. Moelis & Company ITEM 6 . Reserved 29
Invesco Ltd. Northern Trust Corp. Ameriprise Financial, Inc. Jefferies Financial Group Inc. Piper Sandler Companies Evercore Inc. Lazard Ltd. Raymond James Financial, Inc. Franklin Resources, Inc. LPL Financial Holdings Inc. T. Rowe Price Group, Inc. Houlihan Lokey, Inc. Moelis & Company ITEM 6 . RESERVED 31
Issuer Purchases of Equity Securities There were no unregistered sales of equity securities during the quarter ended December 31, 2024.
Issuer Purchases of Equity Securities There were no unregistered sales of equity securities during the quarter ended December 31, 2025.
At December 31, 2024, the maximum number of shares that may yet be purchased under this plan was 10.1 million. 27 Stock Performance Graph Five-Year Shareholder Return Comparison The graph below compares the cumulative stockholder return on our common stock with the cumulative total return of a Peer Group Index, the Standard & Poor’s 500 Index (“S&P 500”), and the NYSE ARCA Securities Broker Dealer Index for the five-year period ended December 31, 2024.
At December 31, 2025, the maximum number of shares that may yet be purchased under this plan was 7.6 million. 29 Stock Performance Graph Five-Year Shareholder Return Comparison The graph below compares the cumulative stockholder return on our common stock with the cumulative total return of a Peer Group Index, the Standard & Poor’s 500 Index (“S&P 500”), and the NYSE ARCA Securities Broker Dealer Index for the five-year period ended December 31, 2025.
As of that date, our common stock was held by approximately 113,500 shareholders.
As of that date, our common stock was held by approximately 152,000 shareholders.
The following table and graph assume that $100.00 was invested on December 31, 2019, in our common stock, the Peer Group Index, the S&P 500 Index, and the NYSE ARCA Securities Broker Dealer Index, with reinvestment of dividends. 2020 2021 2022 2023 2024 Stifel Financial Corp. $ 126 $ 178 $ 152 $ 183 $ 286 Peer Group $ 111 $ 157 $ 133 $ 148 $ 192 S&P 500 Index $ 118 $ 152 $ 125 $ 158 $ 197 NYSE ARCA Securities Broker-Dealer Index $ 130 $ 168 $ 155 $ 192 $ 277 *Compound Annual Growth Rate 28 The Peer Group Index consists of the following companies that serve the same markets as us and which compete with us in one or more markets: Affiliated Managers Group Inc.
The following table and graph assume that $100.00 was invested on December 31, 2020, in our common stock, the Peer Group Index, the S&P 500 Index, and the NYSE ARCA Securities Broker Dealer Index, with reinvestment of dividends. 2021 2022 2023 2024 2025 Stifel Financial Corp. $ 141 $ 120 $ 144 $ 226 $ 271 Peer Group $ 142 $ 120 $ 133 $ 173 $ 181 S&P 500 Index $ 129 $ 105 $ 133 $ 166 $ 196 NYSE ARCA Securities Broker-Dealer Index $ 129 $ 119 $ 148 $ 213 $ 272 *Compound Annual Growth Rate 30 The Peer Group Index consists of the following companies that serve the same markets as us and which compete with us in one or more markets: Affiliated Managers Group Inc.
The following table sets forth for the periods indicated the high and low trades for our common stock. 2024 2023 High Low High Low First quarter $ 78.33 $ 67.61 $ 68.77 $ 53.48 Second quarter $ 84.25 $ 73.51 $ 62.35 $ 54.84 Third quarter $ 94.18 $ 76.64 $ 66.61 $ 58.08 Fourth quarter $ 119.12 $ 92.18 $ 70.07 $ 54.81 Cash dividends per share of common stock paid during the year are reflected below.
The following table sets forth for the periods indicated the high and low trades for our common stock. 2025 2024 High Low High Low First quarter $ 120.64 $ 90.44 $ 78.33 $ 67.61 Second quarter $ 104.91 $ 73.27 $ 84.25 $ 73.51 Third quarter $ 117.49 $ 103.22 $ 94.18 $ 76.64 Fourth quarter $ 133.08 $ 106.96 $ 119.12 $ 92.18 Cash dividends per share of common stock paid during the year are presented below.
Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Maximum Number of Shares That May Yet be Purchased Under the Plan or Program October 1 - 31, 2024 — — — 10,519,256 November 1 - 30, 2024 200,000 117.72 200,000 10,319,256 December 1 - 31, 2024 208,463 105.13 208,463 10,110,793 408,463 $ 111.30 408,463 We have an ongoing authorization from the Board of Directors to repurchase our common stock in the open market or in negotiated transactions.
Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Maximum Number of Shares That May Yet be Purchased Under the Plan or Program October 1 - 31, 2025 109,732 $ 112.94 109,732 7,831,347 November 1 - 30, 2025 208,881 118.35 208,881 7,622,466 December 1 - 31, 2025 — — — 7,622,466 318,613 $ 116.48 318,613 We have an ongoing authorization from the Board of Directors to repurchase our common stock in the open market or in negotiated transactions.
Fiscal Year 2024 Fiscal Year 2023 First quarter $ 0.42 $ 0.36 Second quarter $ 0.42 $ 0.36 Third quarter $ 0.42 $ 0.36 Fourth quarter $ 0.42 $ 0.36 The payment of dividends on our common stock is subject to several factors, including operating results, financial requirements of our company, and the availability of funds from our subsidiaries.
On a split-adjusted basis, the quarterly dividend will be $0.34 per common share. The payment of dividends on our common stock is subject to several factors, including operating results, financial requirements of our company, and the availability of funds from our subsidiaries.
Added
Trading will begin on a split-adjusted basis on February 27, 2026. On January 30, 2026, the Company had approximately 103.2 million shares outstanding. After the split, the Company will have approximately 154.8 million shares outstanding. The closing sale price of our common stock as reported on the New York Stock Exchange on January 30, 2026, was $123.30.
Added
Fiscal Year 2025 Fiscal Year 2024 First quarter $ 0.46 $ 0.42 Second quarter $ 0.46 $ 0.42 Third quarter $ 0.46 $ 0.42 Fourth quarter $ 0.46 $ 0.42 On January 26, 2026, the Board of Directors approved an 11% increase in the quarterly dividend to $0.51 per common share starting in the first quarter of 2026.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

190 edited+56 added−74 removed144 unchanged
Biggest changeDistribution of Assets, Liabilities, and Shareholders’ Equity; Interest Rates and Interest Differential The following tables present average balance data and operating interest revenue and expense data for Stifel Bancorp, as well as related interest yields for the periods indicated (in thousands, except rates) : For the Year Ended December 31, 2024 December 31, 2023 Average Balance Interest Income/ Expense Average Interest Rate Average Balance Interest Income/ Expense Average Interest Rate Assets: Interest-bearing cash and federal funds sold $ 2,045,304 $ 112,835 5.52 % $ 1,358,817 $ 74,486 5.48 % U.S. government agencies 2,390 50 2.11 2,359 49 2.10 State and municipal securities (tax-exempt) (1) 2,350 71 3.00 2,350 71 3.00 Mortgage-backed securities 993,619 26,368 2.65 963,414 21,355 2.22 Corporate fixed income securities 564,101 15,469 2.74 624,079 17,060 2.73 Asset-backed securities 6,210,508 442,176 7.12 6,143,333 428,664 6.98 Federal Home Loan Bank and other capital stock 65,553 3,454 5.27 62,517 2,602 4.16 Loans (2) Securities-based loans 2,292,176 162,161 7.07 2,440,912 170,699 6.99 Commercial and industrial 3,734,097 323,531 8.66 4,491,531 378,277 8.42 Fund banking 3,458,175 273,907 7.92 4,256,903 323,120 7.59 Residential real estate 8,268,123 291,376 3.52 7,731,478 241,730 3.13 Commercial real estate 612,374 44,658 7.29 670,556 49,715 7.41 Home equity lines of credit 161,343 13,490 8.36 116,668 9,512 8.15 Construction and land 1,176,660 96,929 8.24 770,563 63,134 8.19 Other 50,389 2,925 5.80 49,577 3,193 6.44 Loans held for sale 486,261 41,071 8.45 210,446 13,628 6.48 Total interest-earning assets (3) $ 30,123,423 $ 1,850,471 6.14 % $ 29,895,503 $ 1,797,295 6.01 % Cash and due from banks 20,633 9,127 Other non-interest-earning assets 194,409 140,958 Total assets $ 30,338,465 $ 30,045,588 Liabilities and stockholders’ equity: Deposits: Money market $ 25,581,967 $ 814,527 3.18 % $ 24,967,085 $ 632,251 2.53 % Time deposits 114,681 5,995 5.23 2,535 75 2.95 Demand deposits 1,913,841 67,920 3.55 2,297,253 92,527 4.03 Savings 1,236 11 0.88 556 4 0.72 Federal Home Loan Bank advances 1 0 2.15 1,371 68 4.99 Other borrowings 82,315 5,891 7.16 19,076 1,725 9.04 Total interest-bearing liabilities (3) $ 27,694,041 $ 894,344 3.23 % $ 27,287,876 $ 726,650 2.66 % Non-interest-bearing deposits 372,601 382,686 Other non-interest-bearing liabilities 141,080 153,543 Total liabilities $ 28,207,722 $ 27,824,105 Stockholders’ equity 2,130,743 2,221,483 Total liabilities and stockholders’ equity $ 30,338,465 $ 30,045,588 Net interest income/spread $ 956,127 2.91 % $ 1,070,645 3.35 % Net interest margin 3.17 % 3.58 % (1) Due to immaterial amount of income recognized on tax-exempt securities, yields were not calculated on a tax-equivalent basis.
Biggest changeDistribution of Assets, Liabilities, and Shareholders’ Equity; Interest Rates and Interest Differential The following tables present average balance data and operating interest revenue and expense data, as well as related interest yields for the periods indicated (in thousands, except rates) : For the Year Ended December 31, 2025 December 31, 2024 December 31, 2023 Average Balance Interest Income/ Expense Average Interest Rate Average Balance Interest Income/ Expense Average Interest Rate Average Balance Interest Income/ Expense Average Interest Rate Interest-earning assets: Interest-bearing cash and federal funds sold $ 2,252,703 $ 94,179 4.18 % $ 3,126,654 $ 164,110 5.25 % $ 2,394,404 $ 123,363 5.15 % Financial instruments owned 1,347,543 33,007 2.45 1,126,934 25,001 2.22 895,020 16,726 1.87 Margin balances 866,477 59,324 6.85 698,487 55,156 7.90 786,264 61,138 7.78 Investments: Asset-backed securities 6,591,048 397,304 6.03 6,210,508 442,176 7.12 6,143,333 428,664 6.98 Mortgage-backed securities 1,140,980 37,092 3.25 993,619 26,368 2.65 963,414 21,355 2.22 Corporate fixed income securities 453,374 12,336 2.72 564,101 15,469 2.74 624,079 17,060 2.73 Other 4,773 122 2.55 4,740 120 2.55 4,709 120 2.55 Total investments 8,190,175 446,854 5.46 7,772,968 484,133 6.23 7,735,535 467,199 6.04 Loans: Residential real estate 8,896,581 347,303 3.90 8,268,123 291,376 3.52 7,731,478 241,730 3.13 Commercial and industrial 3,977,009 287,446 7.23 3,734,097 323,531 8.66 4,491,531 378,277 8.42 Fund banking 3,860,296 267,804 6.94 3,458,175 273,907 7.92 4,256,903 323,120 7.59 Securities-based loans 2,513,202 153,195 6.10 2,292,176 162,161 7.07 2,440,912 170,699 6.99 Construction and land 1,208,737 88,395 7.31 1,176,660 96,929 8.24 770,563 63,134 8.19 Commercial real estate 451,642 33,890 7.50 612,374 44,658 7.29 670,556 49,715 7.41 Loans held for sale 497,295 39,904 8.02 486,261 41,071 8.45 210,446 13,628 6.48 Other 254,659 17,863 7.01 211,733 16,415 7.75 166,245 12,705 7.64 Total loans 21,659,421 1,235,800 5.71 20,239,599 1,250,048 6.18 20,738,634 1,253,008 6.04 Other interest-earning assets 997,251 34,405 3.45 838,928 38,016 4.53 764,679 34,311 4.49 Total interest-earning assets/interest income $ 35,313,570 $ 1,903,569 5.39 % $ 33,803,570 $ 2,016,464 5.97 % $ 33,314,536 $ 1,955,745 5.87 % Interest-bearing liabilities: Short-term borrowings $ 1,874 $ 96 5.14 % $ 404 $ 26 6.44 % $ 2,412 $ 144 5.97 % Stock loan 381,779 (6,578 ) (1.72 ) 253,467 (7,203 ) (2.84 ) 147,904 (8,028 ) (5.43 ) Senior notes 617,000 28,524 4.62 905,733 40,349 4.45 1,115,052 50,025 4.49 Stifel Capital Trusts 58,712 3,713 6.32 60,000 4,408 7.35 60,000 4,363 7.27 Deposits: Money market 25,544,354 639,991 2.51 25,581,967 814,527 3.18 24,967,085 632,251 2.53 Demand deposits 2,868,142 89,287 3.11 1,913,841 67,920 3.55 2,297,253 92,527 4.03 Time deposits 211,772 8,924 4.21 114,681 5,995 5.23 2,535 75 2.95 Savings 10,999 113 1.03 1,235 11 0.88 556 4 0.72 Total deposits 28,635,267 738,315 2.58 27,611,724 888,453 3.22 27,267,429 724,857 2.66 Federal Home Loan Bank advances 823 38 4.60 1 — 2.15 1,371 68 4.99 Other interest-bearing liabilities 1,142,270 53,695 4.70 1,065,202 55,333 5.19 1,027,985 38,907 3.78 Total interest-bearing liabilities/interest expense $ 30,837,725 817,803 2.65 % $ 29,896,531 981,366 3.28 % $ 29,622,153 810,336 2.74 % Net interest income/margin $ 1,085,766 3.07 % $ 1,035,098 3.06 % $ 1,145,409 3.44 % 36 The following table sets forth an analysis of the effect on net interest income of volume and rate changes for the periods indicated (in thousands) : Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Increase (decrease) due to: Increase (decrease) due to: Volume Rate Total Volume Rate Total Interest income: Interest-bearing cash and federal funds sold $ (40,470 ) $ (29,461 ) $ (69,931 ) $ 38,393 $ 2,354 $ 40,747 Financial instruments owned 5,227 2,779 8,006 4,805 3,470 8,275 Margin balances 9,321 (5,153 ) 4,168 (6,948 ) 966 (5,982 ) Investments: Asset-backed securities 29,858 (74,730 ) (44,872 ) 4,721 8,791 13,512 Mortgage-backed securities 4,260 6,464 10,724 688 4,325 5,013 Corporate fixed income securities (3,014 ) (119 ) (3,133 ) (1,645 ) 54 (1,591 ) Other 1 1 2 — — — Loans: Residential real estate 23,135 32,792 55,927 17,532 32,114 49,646 Commercial and industrial 23,300 (59,385 ) (36,085 ) (66,003 ) 11,257 (54,746 ) Fund banking 90,438 (96,541 ) (6,103 ) (64,059 ) 14,846 (49,213 ) Securities-based loans 20,610 (29,576 ) (8,966 ) (10,551 ) 2,013 (8,538 ) Construction and land 2,737 (11,271 ) (8,534 ) 33,451 344 33,795 Commercial real estate (12,102 ) 1,334 (10,768 ) (4,254 ) (803 ) (5,057 ) Loans held for sale 971 (2,138 ) (1,167 ) 22,273 5,170 27,443 Other 3,097 (1,649 ) 1,448 3,782 (72 ) 3,710 Other interest-earning assets 13,646 (17,257 ) (3,611 ) 3,361 344 3,705 $ 171,015 $ (283,910 ) $ (112,895 ) $ (24,454 ) $ 85,173 $ 60,719 Interest expense: Short-term borrowings $ 74 $ (4 ) $ 70 $ (126 ) $ 8 $ (118 ) Stock loan 2,809 (2,184 ) 625 2,483 (1,658 ) 825 Senior notes (13,414 ) 1,589 (11,825 ) (9,327 ) (349 ) (9,676 ) Stifel Capital Trusts (93 ) (602 ) (695 ) — 45 45 Deposits: Money market (1,196 ) (173,340 ) (174,536 ) 15,921 166,355 182,276 Demand deposits 28,349 (6,982 ) 21,367 (14,371 ) (10,236 ) (24,607 ) Time deposits 3,799 (870 ) 2,929 5,819 101 5,920 Savings 100 2 102 6 1 7 Federal Home Loan Bank advances 29 9 38 (44 ) (24 ) (68 ) Other interest-bearing liabilities 5,215 (6,853 ) (1,638 ) 1,455 14,971 16,426 $ 25,672 $ (189,235 ) $ (163,563 ) $ 1,816 $ 169,214 $ 171,030 Increases and decreases in interest revenue and interest expense result from changes in average balances (volume) of interest-earning bank assets and liabilities, as well as changes in average interest rates.
For the year ended December 31, 2024, investment banking revenues increased 36.0% to $994.8 million from $731.3 million in 2023. Capital-raising revenues increased 57.1% to $417.4 million for the year ended December 31, 2024, from $265.7 million in 2023.
Investment banking – For the year ended December 31, 2024, investment banking revenues increased 36.0% to $994.8 million from $731.3 million in 2023. For the year ended December 31, 2024, capital-raising revenues increased 57.1% to $417.4 million from $265.7 million in 2023.
For the year ended December 31, 2024, communications and office supplies expense increased 5.3% to $194.4 million from $184.7 million in 2023. The increase is primarily attributable to higher communication and quote equipment expenses associated with the continued investments made in our business.
Communications and office supplies – For the year ended December 31, 2024, communications and office supplies expense increased 5.3% to $194.4 million from $184.7 million in 2023. The increase is primarily attributable to higher communication and quote equipment expenses associated with the continued investments made in our business.
The expected credit losses on our loan portfolio are referred to as the allowance for loan losses and are reported separately as a contra-asset to loans on the consolidated statement of financial condition.
The expected credit losses on our loan portfolio are referred to as the allowance for credit losses and are reported separately as a contra-asset to loans on the consolidated statement of financial condition.
Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our company's and Stifel Bancorp's financial statements. 65 Effects of Inflation Our assets are primarily monetary, consisting of cash, securities inventory, and receivables from customers and brokers and dealers.
Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our company's and Stifel Bancorp's financial statements. Effects of Inflation Our assets are primarily monetary, consisting of cash, securities inventory, and receivables from customers and brokers and dealers.
The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. Depending on changes in circumstances, future assessments of credit risk may yield materially different results from the prior estimates, which may require an increase or a decrease in the allowance for loan losses.
The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. Depending on changes in circumstances, future assessments of credit risk may yield materially different results from the prior estimates, which may require an increase or a decrease in the allowance for credit losses.
Short-term borrowings – Our short-term financing is generally obtained through short-term bank line financing on an uncommitted, secured basis, securities lending arrangements, repurchase agreements, advances from the Federal Home Loan Bank, term loans, and committed bank line financing on an unsecured basis. We borrow from various banks on a demand basis with company-owned and customer securities pledged as collateral.
Short-term borrowings – Our short-term financing is generally obtained through short-term bank line financing on an uncommitted, secured basis, securities lending arrangements, repurchase agreements, advances from the Federal Home Loan Bank, term loans, and committed bank line financing on an unsecured basis. We borrow from various banks on a demand basis with company-owned securities pledged as collateral.
While we believe that the assumptions and inputs we use in our risk model are reasonable, different assumptions and inputs could produce materially different VaR estimates. We monitor, on a daily basis, the VaR in our trading portfolios using a ten-day horizon and a five-year look-back period measured at a 99% confidence level.
While we believe that the assumptions and inputs we use in our risk model are reasonable, different 61 assumptions and inputs could produce materially different VaR estimates. We monitor, on a daily basis, the VaR in our trading portfolios using a ten-day horizon and a five-year look-back period measured at a 99% confidence level.
As a result of the uncertainty inherent in the quantitative models, other quantitative and qualitative factors are considered in adjusting allowance amounts, including, but not limited to, the following: model imprecision, imprecision in macroeconomic scenario forecasts, or changes in the economic environment affecting specific portfolio segments that deviate from the macroeconomic forecasts.
As a result of the uncertainty inherent in the quantitative models, other quantitative and qualitative factors are considered in adjusting allowance amounts, including, but not limited to, the following: model imprecision, imprecision in macroeconomic forecast scenario, or changes in the economic environment affecting specific portfolio segments that deviate from the macroeconomic forecasts.
For debt securities, we also consider any intent to sell the security and the likelihood we will be required to sell the security before its anticipated recovery. We continually monitor the ratings of our security holdings and conduct regular reviews of our credit-sensitive assets. Deposits – Deposits have become our largest funding source.
For debt securities, we also consider any intent to sell the security and the likelihood we 54 will be required to sell the security before its anticipated recovery. We continually monitor the ratings of our security holdings and conduct regular reviews of our credit-sensitive assets. Deposits – Deposits have become our largest funding source.
Commissions and floor brokerage – For the year ended December 31, 2024, commissions and floor brokerage increased 8.5% to $35.7 million from $32.9 million in 2023. The increase was primarily attributable to higher clearing expenses and ECN trading costs, partially offset by lower processing expenses.
Commissions and floor brokerage – For the year ended December 31, 2024, commissions and floor brokerage expense increased 8.5% to $35.7 million from $32.9 million in 2023. The increase was primarily attributable to higher clearing expenses and ECN trading costs, partially offset by lower processing expenses.
When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, have no repayment risk. We minimize the credit (or repayment) 64 risk in derivative instruments by entering into transactions with high-quality counterparties that are reviewed periodically by senior management.
When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, have no repayment risk. We minimize the credit (or repayment) risk in derivative instruments by entering into transactions with high-quality counterparties that are reviewed periodically by senior management.
We monitor the available-for-sale investment portfolio for other-than-temporary impairment based on a number of criteria, including the size of the unrealized loss position, the duration for which the security has been in a loss position, credit rating, the nature of the 55 investments, and current market conditions.
We monitor the available-for-sale investment portfolio for other-than-temporary impairment based on a number of criteria, including the size of the unrealized loss position, the duration for which the security has been in a loss position, credit rating, the nature of the investments, and current market conditions.
For example, factors that we consider 60 include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and nonaccrual loans, the effect of external factors such as competition, and legal and regulatory requirements, among others.
For example, factors that we consider include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and nonaccrual loans, the effect of external factors such as competition, and legal and regulatory requirements, among others.
INCOME BEFORE INCOME TAXES For the year ended December 31, 2024, income before income taxes decreased 0.6% to $1.21 billion from $1.22 billion in 2023. Profit margins (income before income taxes as a percent of net revenues) have decreased to 36.8% for the year ended December 31, 2024, from 39.9% in 2023.
INCOME BEFORE INCOME TAXES For the year ended December 31, 2024, income before income taxes decreased 0.6% to $1.21 billion from $1.22 billion in 2023. Profit margins (income before income taxes as a percent of net revenues) decreased to 36.8% for the year ended December 31, 2024, from 39.9% in 2023.
Allowance for Credit Losses The measurement of the allowance for credit losses, which includes the allowance for loan losses and the reserve for unfunded lending commitments, is based on management’s best estimate of lifetime expected credit losses inherent in our company’s relevant financial assets.
Allowance for Credit Losses The measurement of the allowance for credit losses, which includes the allowance for credit losses and the reserve for unfunded lending commitments, is based on management’s best estimate of lifetime expected credit losses inherent in our company’s relevant financial assets.
The assumptions utilized in the Company’s liquidity stress tests include, but are not limited to, the following: • No government support • No access to equity and unsecured debt markets within the stress horizon • Higher haircuts and significantly lower availability of secured funding • Additional collateral that would be required by trading counter-parties, certain exchanges, and clearing organizations related to credit rating downgrades • Client cash withdrawals and inability to accept new deposits • Increased demand from customers on the funding of loans and lines of credit At December 31, 2024, the Company maintained sufficient liquidity to meet current and contingent funding obligations as modeled in its liquidity stress test model.
The assumptions utilized in the Company’s liquidity stress tests include, but are not limited to, the following: • No government support • No access to equity and unsecured debt markets within the stress time horizon • Higher haircuts and significantly lower availability of secured funding • Additional collateral that would be required by trading counter-parties, certain exchanges, and clearing organizations related to credit rating downgrades • Client cash withdrawals and inability to accept new deposits • Increased demand from customers on the funding of loans and lines of credit At December 31, 2025, the Company maintained sufficient liquidity to meet current and contingent funding obligations as modeled in its liquidity stress test model.
See “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” and “Item 3 – Legal Proceedings” of this Form 10-K for additional discussion of our legal proceedings.
See “Item 7 – 63 Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” and “Item 3 – Legal Proceedings” of this Form 10-K for additional discussion of our legal proceedings.
Changes in securities market volumes, related client borrowing demands, underwriting activity, and levels of securities inventory affect the amount of our financing requirements. Our bank assets consist principally of available-for-sale and held-to-maturity securities, retained loans, and cash and cash equivalents. Stifel Bancorp’s current liquidity needs are generally met through deposits from brokerage clients and equity capital.
Changes in securities market volumes, related client borrowing demands, underwriting activity, and levels of securities inventory affect the amount of our financing requirements. Our bank assets consist principally of available-for-sale and held-to-maturity securities, loans held for investment, and cash and cash equivalents. Stifel Bancorp’s current liquidity needs are generally met through deposits from brokerage clients and equity capital.
At December 31, 2024, Stifel’s excess net capital exceeded the minimum requirement, as defined. There are also limitations on the amount of dividends that may be declared by a broker-dealer without FINRA approval. See Note 19 of the Notes to Consolidated Financial Statements for more information on the capital restrictions placed on our broker-dealer subsidiaries.
At December 31, 2025, Stifel’s excess net capital exceeded the minimum requirement, as defined. There are also limitations on the amount of dividends that may be declared by a broker-dealer without FINRA approval. See Note 19 of the Notes to Consolidated Financial Statements for more information on the capital restrictions placed on our broker-dealer subsidiaries.
The objectives of these policies are to support the successful execution of our business strategies while ensuring ongoing and sufficient liquidity. 54 Liquidity stress testing (Firmwide) – A liquidity stress test model is maintained by the Company that measures liquidity outflows across multiple scenarios at the major operating subsidiaries and details the corresponding impact to our holding company and the overall consolidated firm.
The objectives of these policies are to support the successful execution of our business strategies while ensuring ongoing and sufficient liquidity. 53 Liquidity stress testing (Firmwide) – A liquidity stress test model is maintained by the Company that measures liquidity outflows across multiple scenarios at the major operating subsidiaries and details the corresponding impact to our holding company and the overall consolidated firm.
Stifel Bancorp is eligible to participate in the Federal Reserve’s discount window program; however, Stifel Bancorp does not view 56 borrowings from the Federal Reserve as a primary means of funding. The credit available in this program is subject to periodic review, may be terminated or reduced at the discretion of the Federal Reserve, and is secured by securities.
Stifel Bancorp is eligible to participate in the Federal Reserve’s discount window program; however, Stifel Bancorp does not view 55 borrowings from the Federal Reserve as a primary means of funding. The credit available in this program is subject to periodic review, may be terminated or reduced at the discretion of the Federal Reserve, and is secured by securities.
At December 31, 2024, our banking subsidiaries were considered well capitalized under the regulatory framework for prompt corrective action. At December 31, 2024, SNC’s net capital and reserves were in excess of the financial resources requirement under the rules of the CIRO. See Note 19 of the Notes to Consolidated Financial Statements for details of our regulatory capital requirements.
At December 31, 2025, our banking subsidiaries were considered well capitalized under the regulatory framework for prompt corrective action. At December 31, 2025, SNC’s net capital and reserves were in excess of the financial resources requirement under the rules of the CIRO. See Note 19 of the Notes to Consolidated Financial Statements for details of our regulatory capital requirements.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion of the financial condition and results of operations of our company should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in this Annual Report on Form 10-K for the year ended December 31, 2024.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion of the financial condition and results of operations of our company should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in this Annual Report on Form 10-K for the year ended December 31, 2025.
Please refer to the section entitled “Critical Accounting Policies and Estimates” herein regarding our policies for establishing loan loss reserves, including placing loans on nonaccrual status. IV. Deposits Deposits consist of money market and savings accounts, certificates of deposit, and demand deposits.
Please refer to the section entitled “Critical Accounting Policies and Estimates” herein regarding our policies for establishing credit loss reserves, including placing loans on nonaccrual status. IV. Deposits Deposits consist of money market and savings accounts, certificates of deposit, and demand deposits.
Our non-broker-dealer subsidiaries, Stifel Bank & Trust, Stifel Bank, Stifel Trust Company, 58 N.A., and Stifel Trust Company Delaware, N.A., are also subject to various regulatory capital requirements administered by the federal banking agencies. Our broker-dealer subsidiaries and our bank subsidiaries have consistently operated in excess of their capital adequacy requirements.
Our non-broker-dealer subsidiaries, Stifel Bank & Trust, Stifel Bank, Stifel Trust Company, 57 N.A., and Stifel Trust Company Delaware, N.A., are also subject to various regulatory capital requirements administered by the federal banking agencies. Our broker-dealer subsidiaries and our bank subsidiaries have consistently operated in excess of their capital adequacy requirements.
The restricted stock units generally vest over the next one to ten years after issuance and are distributed at predetermined future payable dates once vesting occurs. Restricted stock awards are restricted as to sale or disposition. These restrictions lapse over the next one to two years.
The restricted stock units generally vest over the next one to ten years after issuance and are distributed at predetermined future payable dates once vesting occurs. Restricted stock awards are restricted as to sale or disposition. These restrictions lapse over the next year.
The restricted stock units vest on an annual basis over the next one to ten years and are distributable, if vested, at future specified dates. Restricted stock awards are restricted as to sale or disposition. These restrictions lapse over the next one to two years.
The restricted stock units vest on an annual basis over the next one to ten years and are distributable, if vested, at future specified dates. Restricted stock awards are restricted as to sale or disposition. These restrictions lapse over the next year.
At December 31, 2024, all of our broker-dealer subsidiaries’ net capital exceeded the minimum net capital required under the SEC rule. At December 31, 2024, SNEL’s capital and reserves were in excess of the financial resources requirement under the rules of the FCA.
At December 31, 2025, all of our broker-dealer subsidiaries’ net capital exceeded the minimum net capital required under the SEC rule. At December 31, 2025, SNEL’s capital and reserves were in excess of the financial resources requirement under the rules of the FCA.
The Credit Agreement contains customary events of default, including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to similar obligations, certain events of bankruptcy and insolvency, change of control, and judgment defaults.
The Amended and Restated Credit Agreement contains customary events of default, including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to similar obligations, certain events of bankruptcy and insolvency, change of control, and judgment defaults.
Federal Home Loan Bank Advances and other secured financing – Stifel Bancorp has borrowing capacity with the Federal Home Loan Bank of $5.7 billion at December 31, 2024, and $64.5 million in federal funds agreements for the purpose of purchasing short-term funds should additional liquidity be needed. At December 31, 2024, there were no outstanding Federal Home Loan Bank advances.
Federal Home Loan Bank Advances and other secured financing – Stifel Bancorp has borrowing capacity with the Federal Home Loan Bank of $7.0 billion at December 31, 2025, and $64.5 million in federal funds agreements for the purpose of purchasing short-term funds should additional liquidity be needed. At December 31, 2025, there were no outstanding Federal Home Loan Bank advances.
The reduction will be calculated based on a current market price of our common stock.
The reduction will be calculated based on the current market price of our common stock.
The effect of changes in volume is determined by multiplying the change in volume by the previous year’s average yield/cost. Similarly, the effect of rate changes is calculated by multiplying the change in average yield/cost by the previous year’s volume. Changes applicable to both volume and rate have been allocated proportionately. 45 II.
The effect of changes in volume is determined by multiplying the change in volume by the previous year’s average yield/cost. Similarly, the effect of rate changes is calculated by multiplying the change in average yield/cost by the previous year’s volume. Changes applicable to both volume and rate have been allocated proportionately.
In July 2016, we issued an additional $200.0 million in aggregate principal amount of 4.25% senior notes due 2024. In July 2014, we received a BBB- rating on the 2014 Notes. The 2014 Notes matured in July 2024.
In July 2016, we issued an additional $200.0 million in aggregate principal amount of 4.25% senior notes. In July 2014, we received a BBB- rating on the 2014 Notes. In July 2024, the $500.0 million of 2014 Notes matured.
Further, to the extent inflation results in rising interest rates and has other adverse effects upon the securities markets, it may adversely affect our financial position and results of operations. 66
Further, to the extent inflation results in rising interest rates and has other adverse effects upon the securities markets, it may adversely affect our financial position and results of operations. 64
Under the Credit Agreement, the Borrowers are required to maintain compliance with a minimum consolidated tangible net worth covenant, as defined, and a maximum consolidated total capitalization ratio covenant, as defined.
Under the Amended and Restated Credit Agreement, the Borrowers are required to maintain compliance with a minimum consolidated tangible net worth covenant, as defined, and a maximum consolidated total capitalization ratio covenant, as defined.
Year Ended December 31, 2024, Compared With Year Ended December 31, 2023 Net interest income – Net interest income is the difference between interest earned on interest-earning assets and interest paid on funding sources.
Year Ended December 31, 2025, Compared With Year Ended December 31, 2024 Net interest income – Net interest income is the difference between interest earned on interest-earning assets and interest paid on funding sources.
Upon the occurrence and during the continuation of an event of default, the Company’s obligations under the Credit Agreement may be accelerated and the lending commitments thereunder terminated.
Upon the occurrence and during the continuation of an event of default, the Company’s obligations under the Amended and Restated Credit Agreement may be accelerated and the lending commitments thereunder terminated.
These branches provide securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance, as well as offering banking products to their private clients through our bank subsidiaries, which provide residential, consumer, and commercial lending, as well as FDIC-insured deposit accounts to customers of our broker-dealer subsidiaries and to the general public.
These branches provide securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance, as well as offering banking products to their private clients through Stifel Bancorp, which provides residential, consumer, and commercial lending, as well as FDIC-insured deposit accounts to customers of our broker-dealer subsidiaries and to the general public.
At December 31, 2024, available cash and highly liquid investments comprised approximately 17% of Stifel Bancorp’s assets, which was well in excess of its internal target. In addition to these stress tests, management performs a daily liquidity review. The daily analysis provides management with all major fluctuations in liquidity.
At December 31, 2025, available cash and highly liquid investments comprised approximately 12% of Stifel Bancorp’s assets, which was well in excess of its internal target. In addition to these stress tests, management performs a daily liquidity review. The daily analysis provides management with all major fluctuations in liquidity.
Profit margins (income before income taxes as a percentage of net revenues) have increased to 14.0% for the year ended December 31, 2024, from 0.2% in 2023 as a result of higher revenues.
Profit margins (income before income taxes as a percentage of net revenues) have increased to 17.2% for the year ended December 31, 2025, from 14.0% in 2024 as a result of higher revenues.
In addition, Stifel is required to maintain compliance with a minimum regulatory excess net capital percentage covenant, as defined, and our bank subsidiaries are required to maintain their status as well-capitalized, as defined.
In addition, Stifel is required to maintain compliance with a minimum regulatory excess net capital percentage covenant, as defined, and the Company’s bank subsidiaries are required to maintain their status as well-capitalized, as defined.
Cash and Cash Equivalents – We held $2.6 billion of cash and cash equivalents at December 31, 2024, compared to $3.4 billion at December 31, 2023. Cash and cash equivalents provide immediate sources of funds to meet our liquidity needs.
Cash and Cash Equivalents – We held $2.3 billion of cash and cash equivalents at December 31, 2025, compared to $2.6 billion at December 31, 2024. Cash and cash equivalents provide immediate sources of funds to meet our liquidity needs.
In executing our growth strategy, we will continue to seek out opportunities that allow us to take advantage of the consolidation among middle-market firms, whereby allowing us to increase market share in our private client and institutional group businesses.
In executing our growth strategy, we will continue to seek out opportunities that allow us to take advantage of consolidation, whereby allowing us to increase market share in our private client and institutional group businesses.
The interest rates on borrowings under the Credit Agreement are variable and based on the Secured Overnight Financing Rate. The Borrowers can draw upon this line as long as certain restrictive covenants are maintained.
The interest rates on borrowings under the Amended and Restated Credit Agreement are variable and are based on the Secured Overnight Financing Rate. The Borrowers can draw upon this facility as long as certain restrictive covenants are maintained.
At December 31, 2024, there was $29.0 billion in client money market and FDIC-insured product balances. Public Offering of Senior Notes – On July 15, 2014, we sold in a registered underwritten public offering, $300.0 million in aggregate principal amount of 4.25% senior notes due July 2024 (the “2014 Notes”).
At December 31, 2025, there was $26.6 billion in client money market and FDIC-insured product balances. Public Offering of Senior Notes – On July 15, 2014, we sold in a registered underwritten public offering, $300.0 million in aggregate principal amount of 4.25% senior notes (the “2014 Notes”).
At December 31, 2024, the fair value of securities accepted as collateral where we are permitted to sell or repledge the securities was $2.0 billion and the fair value of the collateral that had been sold or repledged was $580.2 million. By using derivative instruments, we are exposed to credit and market risk on those derivative positions.
At December 31, 2025, the fair value of securities accepted as collateral where we are permitted to sell or repledge the securities was $2.3 billion and the fair value of the collateral that had been sold or repledged was $651.2 million. By using derivative instruments, we are exposed to credit and market risk on those derivative positions.
Commissions and floor brokerage – For the year ended December 31, 2024, commissions and floor brokerage expense increased 7.7% to $62.8 million from $58.3 million in 2023. The increase is primarily attributable to higher clearing expense and electronic communication network (“ECN”) trading costs and processing expenses.
Commissions and floor brokerage – For the year ended December 31, 2024, commissions and floor brokerage expense increased 7.7% to $62.8 million from $58.3 million in 2023. The increase is primarily attributable to higher clearing expense and ECN trading costs and processing expenses.
The increase is primarily attributable to higher clearing expenses. Provision for credit losses – For the year ended December 31, 2024, provision for credit losses increased 10.6% to $25.1 million from $22.7 million in 2023. Provision for credit losses was primarily impacted by loan growth and a deterioration in certain loans, partially offset by a slightly better macroeconomic forecast.
Provision for credit losses – For the year ended December 31, 2024, provision for credit losses increased 10.6% to $25.1 million from $22.7 million in 2023. Provision for credit losses was primarily impacted by loan growth and a deterioration in certain loans, partially offset by a slightly better macroeconomic forecast.
At December 31, 2024, the maximum number of shares that may yet be purchased under this plan was 10.1 million. We utilize the share repurchase program to manage our equity capital relative to the growth of our business and help to meet obligations under our employee benefit plans.
At December 31, 2025, the maximum number of shares that may yet be purchased under this plan was 7.6 million. We utilize the share repurchase program to manage our equity capital relative to the growth of our business and help to meet obligations under our employee benefit plans.
The increase is primarily attributable to higher postage and shipping expenses and communication and quote equipment expenses associated with the continued growth of our business, partially offset by lower internet costs. Commissions and floor brokerage – For the year ended December 31, 2024, commissions and floor brokerage expense increased 6.7% to $27.2 million from $25.5 million in 2023.
The increase is primarily attributable to higher postage and shipping expenses and communication and quote equipment expenses associated with the continued growth of our business, partially offset by lower internet costs. Commissions and floor brokerage – For the year ended December 31, 2025, commissions and floor brokerage expense increased 8.8% to $29.6 million from $27.2 million in 2024.
Other income – For the year ended December 31, 2024, other income increased 393.1% to $43.1 million from $8.7 million during 2023. The increase is primarily attributable to higher investment gains over the comparable period in 2023.
Other income – For the year ended December 31, 2024, other income increased 393.1% to $43.1 million from $8.7 million in 2023. The increase is primarily attributable to higher investment gains over the comparable period in 2023. 35 NET INTEREST INCOME I.
Please refer to the Distribution of Assets, Liabilities, and Shareholders’ Equity; Interest Rates and Interest Differential table below for additional information on Stifel Bancorp’s average balances and interest income and expense.
Please refer to the Distribution of Assets, Liabilities, and Shareholders’ Equity; Interest Rates and Interest Differential table for additional information on our average balances and interest income and expense.
Compensation and benefits – For the year ended December 31, 2023, compensation and benefits expense increased 3.4% to $1.42 billion from $1.37 billion in 2023. The increase is primarily attributable to increased variable compensation from our continued recruiting efforts.
Compensation and benefits – For the year ended December 31, 2024, compensation and benefits expense increased 13.4% to $1.61 billion from $1.42 billion in 2023. The increase is primarily attributable to increased variable compensation from our continued recruiting efforts.
The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. We manage this risk by imposing and monitoring position limits for each counterparty, monitoring trading counterparties, conducting regular credit reviews of financial counterparties, reviewing security concentrations, holding and marking to market collateral on certain transactions, and conducting business through clearing organizations, which guarantee performance.
We manage this risk by imposing and monitoring position limits for each counterparty, monitoring trading counterparties, conducting regular credit reviews of financial counterparties, reviewing security concentrations, holding and marking to market collateral on certain transactions, and conducting business through clearing organizations, which guarantee performance.
Interest expense – For the year ended December 31, 2024, interest expense increased 58.8% to $55.2 million from $34.8 million in 2023. The increase is primarily attributable to higher interest rates and an increase in inventory levels. NON-INTEREST EXPENSES For the year ended December 31, 2024, Institutional Group non-interest expenses increased 11.9% to $1.4 billion from $1.2 billion in 2023.
The increase is primarily attributable to higher interest rates and an increase in inventory levels. NON-INTEREST EXPENSES For the year ended December 31, 2024, Institutional Group non-interest expenses increased 11.9% to $1.4 billion from $1.2 billion in 2023.
Stifel Bancorp has borrowing capacity of $4.7 billion with the Federal Reserve’s discount window at December 31, 2024. Stifel Bancorp receives overnight funds from excess cash held in Stifel brokerage accounts, which are deposited into a money market account. These balances totaled $27.1 billion at December 31, 2024.
Stifel Bancorp has borrowing capacity of $6.4 billion with the Federal Reserve’s discount window at December 31, 2025. Stifel Bancorp receives overnight funds from excess cash held in Stifel brokerage accounts, which are deposited into a money market account. These balances totaled $25.6 billion at December 31, 2025.
Investment advisory fees are charged based on the value of assets in fee-based accounts. Asset management revenues are affected by changes in the balances of client assets due to market fluctuations and levels of net new client assets. For the year ended December 31, 2024, asset management revenues increased 18.3% to a record $1.54 billion from $1.30 billion in 2023.
Investment advisory fees are charged based on the value of assets in fee-based accounts. Asset management revenues are affected by changes in the balances of client assets due to market fluctuations and levels of net new client assets. For the year ended December 31, 2025, asset management revenues increased 10.7% to a record $1.70 billion from $1.54 billion in 2024.
To meet our obligations to clients and operating needs, we had $12.9 billion of cash or assets readily convertible into cash at December 31, 2024. Cash Flow Cash and cash equivalents decreased $0.7 billion to $2.6 billion at December 31, 2024, from $3.4 billion at December 31, 2023.
To meet our obligations to clients and operating needs, we had $12.9 billion of cash or assets readily convertible into cash at December 31, 2025. Cash Flow Cash and cash equivalents decreased $395.4 million to $2.3 billion at December 31, 2025, from $2.7 billion at December 31, 2024.
The increase is primarily attributable to higher data processing, occupancy, and furniture and equipment costs associated with an increase in business activity. 40 Communications and office supplies – For the year ended December 31, 2024, communications and office supplies expense increased 3.2% to $65.4 million from $63.3 million in 2023.
The increase is primarily attributable to higher data processing, occupancy, and furniture and equipment costs associated with an increase in business activity. 45 Communications and office supplies – For the year ended December 31, 2025, communications and office supplies expense increased 1.3% to $66.2 million from $65.4 million in 2024.
Economic and Market Conditions We currently operate in a challenging and uncertain economic environment. Results in the businesses in which we operate are highly correlated to general economic conditions and, more specifically, to the direction of the U.S. equity and fixed income markets.
Economic and Market Conditions Results in the businesses in which we operate are highly correlated to general economic conditions and, more specifically, to the direction of the U.S. equity and fixed income markets.
Occupancy and equipment rental – For the year ended December 31, 2023, occupancy and equipment rental expense increased 8.3% to $339.3 million from $313.2 million in 2022. The increase is primarily attributable to higher occupancy, data processing, and furniture and equipment costs associated with the continued investments made in our business.
Occupancy and equipment rental – For the year ended December 31, 2024, occupancy and equipment rental expense increased 6.8% to $362.4 million from $339.3 million in 2023. The increase is primarily attributable to higher data processing and occupancy costs associated with the continued investments made in our business.
The following table sets forth the high, low, and daily average VaR for our trading portfolios during the year ended December 31, 2024, and the daily VaR at December 31, 2024 and 2023 (in thousands) : December 31, 2024 VaR Calculation at December 31, High Low Daily Average 2024 2023 Daily VaR $ 16,114 $ 5,259 $ 9,703 $ 8,563 $ 6,464 Stifel Bancorp’s interest rate risk is principally associated with changes in market interest rates related to residential, consumer, and commercial lending activities, as well as FDIC-insured deposit accounts to customers of our broker-dealer subsidiaries and to the general public.
The following table sets forth the high, low, and daily average VaR for our trading portfolios during the year ended December 31, 2025, and the daily VaR at December 31, 2025 and 2024 (in thousands) : December 31, 2025 VaR Calculation at December 31, High Low Daily Average 2025 2024 Daily VaR $ 13,850 $ 6,039 $ 8,897 $ 6,680 $ 8,563 Stifel Bancorp’s interest rate risk is principally associated with changes in market interest rates related to residential, consumer, and commercial lending activities, as well as FDIC-insured deposit accounts to customers of our broker-dealer subsidiaries and to the general public.
The increase is primarily attributable to increased variable compensation from our continued recruiting efforts. Compensation and benefits expense as a percentage of net revenues was 48.9% for the year ended December 31, 2024, compared to 46.4% in 2023. The increase is primarily as a result of the revenue mix across the segment.
Compensation and benefits expense as a percentage of net revenues was 48.9% for the year ended December 31, 2024, compared to 46.4% in 2023. The increase is primarily as a result of the revenue mix across the segment.
Occupancy and equipment rental – For the year ended December 31, 2023, occupancy and equipment rental expense increased 8.3% to $165.8 million from $153.1 million in 2022. The increase is primarily attributable to higher occupancy and furniture and equipment costs and higher data processing costs associated with an increase in business activity.
Occupancy and equipment rental – For the year ended December 31, 2024, occupancy and equipment rental expense increased 5.8% to $175.4 million from $165.8 million in 2023. The increase is primarily attributable to higher data processing, occupancy, and furniture and equipment costs associated with an increase in business activity.
Interest income – For the year ended December 31, 2024, interest income increased 44.8% to $34.8 million from $24.0 million in 2023. Other income – For the year ended December 31, 2024, other income increased 149.7% to $31.7 million from $12.7 million in 2023. The increase is primarily attributable to an increase in investment gains.
Other income – For the year ended December 31, 2024, other income increased 149.7% to $31.7 million from $12.7 million in 2023. The increase is primarily attributable to an increase in investment gains. Interest expense – For the year ended December 31, 2024, interest expense increased 58.8% to $55.2 million from $34.8 million in 2023.
Analysis of Financial Condition Our company’s consolidated statements of financial condition consist primarily of cash and cash equivalents, receivables, financial instruments owned, bank loans, investments, goodwill, loans and advances to financial advisors, bank deposits, and payables. Total assets of $39.9 billion at December 31, 2024, were up 5.7% over December 31, 2023.
Analysis of Financial Condition Our company’s consolidated statements of financial condition consist primarily of cash and cash equivalents, receivables, financial instruments owned, bank loans, investments, goodwill, loans and advances to financial advisors, bank deposits, and payables. Total assets of $41.3 billion at December 31, 2025, were up 3.4% over December 31, 2024.
To ensure that Stifel Bancorp is within the limits established for net interest income, an analysis of net interest income based on various shifts in interest rates is prepared each quarter and presented to Stifel Bancorp’s Board of Directors.
To ensure that Stifel Bancorp is within the limits established for net interest income, an analysis of net interest income based on various shifts in interest rates is prepared each quarter and presented to Stifel Bancorp’s Board of Directors. Stifel Bancorp utilizes a third-party model to analyze the available data.
Net interest income is affected by changes in the volume and mix of these assets and liabilities, as well as by fluctuations in interest rates and portfolio management strategies. For the year ended December 31, 2024, net interest income decreased 9.6% to $1.0 billion from $1.1 billion in 2023.
Net interest income is affected by changes in the volume and mix of these assets and liabilities, as well as by fluctuations in interest rates and portfolio management strategies. For the year ended December 31, 2025, net interest income increased 4.9% to $1.09 billion from $1.04 billion in 2024.
Our Canadian subsidiary, SNC, is subject to the regulatory supervision and requirements of CIRO. At December 31, 2024, Stifel had net capital of $449.5 million, which was 37.4% of aggregate debit items and $425.5 million in excess of its minimum required net capital.
Our Canadian subsidiary, SNC, is subject to the regulatory supervision and requirements of CIRO. At December 31, 2025, Stifel had net capital of $559.5 million, which was 37.7% of aggregate debit items and $529.8 million in excess of its minimum required net capital.
Accordingly, compensation and benefits comprise the largest component of our expenses, and our performance is dependent upon our ability to attract, develop, and retain highly skilled associates who are motivated and committed to providing the highest quality of service and guidance to our clients.
Accordingly, compensation and benefits comprise the largest component of our expenses, and our performance is dependent upon our ability to attract, develop, and retain highly skilled associates who are motivated and committed to providing the highest quality of service and guidance to our clients. On April 7, 2025, the Company acquired a portion of B.
The increase is primarily attributable to higher interest rates and higher interest-bearing liabilities. The average interest-bearing liabilities of Stifel Bancorp increased to $27.3 billion during the year ended December 31, 2023, compared to $25.4 billion in 2022 at average interest rates of 2.66% and 0.59%, respectively.
The increase is primarily attributable to higher interest rates and higher interest-bearing liabilities. The average interest-bearing liabilities of Stifel Bancorp increased to $27.7 billion during the year ended December 31, 2024, compared to $27.3 billion in 2023 at average interest rates of 3.23% and 2.66%, respectively. II.
Advisory revenues increased 24.0% to $577.4 million for the year ended December 31, 2024, from $465.6 million in 2023. The increase is primarily attributable to higher levels of completed advisory transactions during 2024. Asset management – Asset management revenues include fees for asset-based financial services provided to individuals and institutional clients.
For the year ended December 31, 2025, advisory revenues increased 25.0% to $722.0 million from $577.4 million in 2024. The increase is primarily attributable to higher levels of completed advisory transactions during 2025 with continued growth in depository advisory transactions. Asset management – Asset management revenues include fees for asset-based financial services provided to individuals and institutional clients.
Communications and office supplies – For the year ended December 31, 2023, communications and office supplies expense increased 4.2% to $63.3 million from $60.8 million in 2022. The increase is primarily attributable to higher postage and shipping expenses and communication and quote equipment expenses associated with the continued growth of our business.
Communications and office supplies – For the year ended December 31, 2024, communications and office supplies expense increased 3.2% to $65.4 million from $63.3 million in 2023. The increase is primarily attributable to higher postage and shipping expenses and communication and quote equipment expenses associated with the continued growth of our business, partially offset by lower internet costs.
Year Ended December 31, 2023, Compared With Year Ended December 31, 2022 Except as noted in the following discussion of variances, the underlying reasons for the increase in non-interest expenses can be attributed principally to our continued expansion, both organically and through our acquisitions, and increased administrative overhead to support the growth in our segments.
Year Ended December 31, 2024, Compared With Year Ended December 31, 2023 Except as noted in the following discussion of variances, the underlying reasons for the increase in non-interest expenses can be attributed principally to our continued expansion, both organically and through our acquisitions, and increased administrative overhead to support the growth in our segments. 41 Compensation and benefits – For the year ended December 31, 2024, compensation and benefits expense increased 14.2% to $2.92 billion from $2.55 billion in 2023.
At December 31, 2024, the total number of restricted stock units, Performance-based Restricted Stock Units (“PRSUs”), and restricted stock awards outstanding was 13.0 million, of which 11.5 million were unvested. At December 31, 2024, there was approximately $669.6 million of unrecognized compensation cost for all deferred awards, which is expected to be recognized over a weighted-average period of 2.5 years.
At December 31, 2025, the total number of restricted stock units, Performance-based Restricted Stock Units (“PRSUs”), and restricted stock awards outstanding was 11.8 million, of which 10.9 million were unvested. At December 31, 2025, there was approximately $733.8 million of unrecognized compensation cost for all deferred awards, which is expected to be recognized over a weighted-average period of 2.7 years.
Profit margins (income before income taxes as a percentage of net revenues) decreased to 0.2% for the year ended December 31, 2023, from 16.5% in 2022 as a result of lower revenues and higher non-compensation operating expenses. 51 Results of Operations – Other Segment The Other segment includes costs associated with investments made in the Company’s infrastructure and control environment and expenses related to the Company’s acquisition strategy.
Profit margins (income before income taxes as a percentage of net revenues) increased to 14.0% for the year ended December 31, 2024, from 0.2% in 2023 as a result of higher revenues. 50 Results of Operations – Other Segment The Other segment includes costs associated with investments made in the Company’s infrastructure and control environment and expenses related to the Company’s acquisition strategy.
A loan is determined to be impaired usually when principal or interest becomes 90 days past due or when collection becomes uncertain. At the time a loan is determined to be impaired, the accrual of interest and amortization of deferred loan origination fees is discontinued (“nonaccrual status”) and any accrued and unpaid interest income is reversed.
When principal or interest becomes 90 days past due or when collection becomes uncertain, the accrual of interest and amortization of deferred loan origination fees is generally discontinued (“nonaccrual status”) and any accrued and unpaid interest income is reversed.
As of December 31, 2024, our liabilities were comprised primarily of deposits of $29.1 billion at Stifel Bancorp, accounts payable and accrued expenses of $0.7 billion, senior notes, net of debt issuance costs, of $0.6 billion, payables to customers of $468.8 million at our broker-dealer subsidiaries, and accrued employee compensation of $790.2 million.
As of December 31, 2025, our liabilities were comprised primarily of deposits of $29.8 billion at Stifel Bancorp, accounts payable and accrued expenses of $701.4 million, senior notes, net of debt issuance costs, of $617.4 million, payables to customers of $431.6 million at our broker-dealer subsidiaries, and accrued employee compensation of $989.0 million.
For the year ended December 31, 2024, equity capital-raising revenues increased 74.2% to $186.9 million from $107.3 million in 2023 driven by higher volumes. For the year ended December 31, 2024, fixed income capital-raising revenues increased 47.6% to $209.0 million from $141.6 million in 2023.
For the year ended December 31, 2024, equity capital-raising revenues increased 74.2% to $186.9 million from $107.3 million in 2023 driven by higher volumes. 49 For the year ended December 31, 2024, fixed income capital-raising revenues increased 47.6% to $209.0 million from $141.6 million in 2023. The increase is primarily attributable to an increase in our corporate debt issuance business.

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