stifel financial net revenues: $931mm ... sales and trading professionals 37 337 811% ... stifel has...

Investor Presentation

November 2009

STIFEL

FINANCIAL

This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform

Act of 1995 that involve significant risks, assumptions and uncertainties, including statements relating to the market

opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus and Company, Inc. and its

other subsidiaries (collectively, “SF” or the “Company”). These statements can be identified by the use of the words

“may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,”

“expect” and similar expressions. In particular, these statements may refer to our goals, intentions and expectations, our

business plans and growth strategies, our ability to integrate and manage our acquired businesses, estimates of our risks and

future costs and benefits, and forecasted demographic and economic trends relating to our industry.

You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made.

We will not update these forward-looking statements, even though our situation may change in the future, unless we are

obligated to do so under federal securities laws.

Actual results may differ materially and reported results should not be considered as an indication of future performance.

Factors that could cause actual results to differ are included in the Company’s annual and quarterly reports and from time to

time in other reports filed by the Company with the Securities and Exchange Commission and include, among other things

changes in general economic and business conditions, actions of competitors, regulatory actions, changes in legislation and

technology changes.

To supplement our financial statements presented in accordance with Generally Accepted Accounting Principles

(“GAAP”), management uses certain non-GAAP measures of financial performance and liquidity. These non-GAAP

measures are in addition to results prepared by the Company in accordance with GAAP, and should only be considered

together with the Company’s GAAP results.

Forward-Looking Statements

Stifel Today

1,900 (1) Financial Advisors in

273 offices throughout the

United States

Global Wealth Management

(GWM)

Debt and Equity

Markets

Approximately 512 associates in 21 U.S. offices and 3 in Europe. Comprehensive coverage of domestic and European institutions

161 investment

banking associates

in 12 U.S. offices

65 public finance

associates in 9

U.S. offices

Offers through Stifel Bank and

Trust, lending products and

services to private client

customers as well as corporate

clients

LTM Net Revenues: $931mm

LTM Operating Contribution

GWM

42%

Capital Markets

58%

(1) Represents total after UBS acquisition completed October 16, 2009 and

Independent Contractors.

Capital Markets

Investment

Banking and

Public Finance

GWM

51%

Capital Markets

48%

Other

1%

Locations 298

Full Time Employees 4,289

Stifel is well-positioned in the current market:

Dislocation creating opportunity for market

share gains

Ability to add talented professionals

Evolving regulatory framework (Stifel is already

regulated by the Fed)

Strong balance sheet

We See Opportunity

Locations 298

Full Time Employees 4,289

STIFEL

Former UBS

$188 $217 $247$264

$452

$763$870

$963

$1,250

$0

$250

$500

$750

$1,000

$1,250

2002 2003 2004 2005 2006 2007 2008 6M09

Annld

Run

Rate

Annld

`

Why We Are Different

Growth

Successful AcquirerNational Platform with European Presence

Successful Creator of Shareholder Value

$ in millions Net Revenues YTD 6/30/09 Net Revenues

22%

31%

47%

<$500mm

$500mm-$2bn

>2bn

Middle Market Focus

Research Coverage by Market Cap

Capital

Markets

Global Wealth

Management

48%

52%

Diverse Product Offering

LEGG MASONCAPITAL MARKETS

RYAN BECK

FIRST SERVICE BANK

MILLER JOHNSON POWELL JOHNSON

HANIFEN IMHOFF BUTLER WICK

UBS BRANCH ACQUISITION

Core Diluted EPS

5 Year CAGR of 27% (1)

(1) CAGR based on Core Diluted EPS from 2003 to 2008 which excludes merger-related equity

compensation expenses and restructuring charges.

$18.36

$24.86

$22.75

$5.91$7.23

$9.02$10.21

$12.35

$0.00

$6.00

$12.00

$18.00

$24.00

$30.00

2002 2003 2004 2005 2006 2007 2008 Q2'09

1,900

1,3151,163

735644621647

543

0

500

1,000

1,500

2,000

2002 2003 2004 2005 2006 2007 2008 Current

$90

$35

$27$20$20

$16

$59 $52

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2002 2003 2004 2005 2006 2007 2008 Current

$593

$425

$80 $100$131 $155

$220

$0

$250

$500

$750

$1,000

2002 2003 2004 2005 2006 2007 2008 Q2'09

$67

$27 $29

$73

$40

$21$23

$15

$3

$0

$16

$32

$48

$64

$80

2002 2003 2004 2005 2006 2007 2008 1H

'08

1H

'09

$763$870

$963

$1,250

$452

$264$247$217$188

$0

$300

$600

$900

$1,200

$1,500

2002 2003 2004 2005 2006 2007 2008 6M 09

Annld

Run

Rate

Annld

Stifel is a Growth Story

(1) 2006 - 2008 excludes merger-related equity compensation expenses and restructuring charges. All other years reflect GAAP net income.

(2) Represents total after UBS acquisition completed October 16, 2009 and Independent Contractors.

(3) Pro forma for equity offering competed September 2009

Net Revenues ($MM)

Total Client Assets ($BN) (2)

Core Net Income ($MM) (1)

Financial Advisors (2)

Total Equity ($MM) (3)

Book Value Per Share ($)

$795

118

738

0

200

400

600

800

2004 Current

Stifel’s Investment in Expanding Client Capabilities

Stifel’s Quarterly Revenue and Stock Price Growth

$-

$50

$100

$150

$200

$250

$300

$-

$10

$20

$30

$40

$50

$60

Revenue

Price

2004

Q1 Q1

2005 2006 2007 2008 2009

Revenue ($M) Stock Price

Q2Q2 Q4Q3Q1 Q2 Q4Q3Q1 Q2 Q4Q3Q1 Q2 Q4Q3 Q1 Q2 Q4Q3

Capital Markets Global Wealth Management Research Coverage

Victor Nesi hired as Director of

Investment Banking and Co-Director

of Capital Markets

Hired 13 new Managing Directors

over past 18 months

Professionals & Support

705

3,178

0

1,000

2,000

3,000

2004 Current

Financial Advisors, Bank Associates & Support(1)

229

898

0

250

500

750

1,000

2004 Current


Companies Covered

January 21, 2009 – Stifel research sweeps both #1

rankings in 2008 StarMine Survey

May 19, 2009 – Stifel research analysts win fourteen

awards in FT / StarMine Analyst Survey

June 4, 2009 – Stifel analysts win six awards in the

Wall Street Journal’s Best on the Street Survey

http://www.stifelbank.com/default.aspx

Growth – “The Numbers”


% Change

Business Units 2004

Since

2004 YTD

Global Wealth Management

Financial Advisors 621 1,900 206% 44% 583

Branch Support 284 1,011 256% 62% 388

Offices 86 273 217% 32% 66

Stifel Bank & Trust Support Associates 0 74 n/a 21% 13

Capital Markets

Sales and Trading Professionals 37 337 811% 11% 34

Investment Banking / Analyst / Public Finance / Support 81 401 395% 17% 57

Infrastructure

Support Associates 195 510 162% 34% 128

Total Associates 1,384 4,289 210% 39% 1,203

Total

As of

9/30/09

YTD Net

Additions

(1)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2Q 09

Annld

Run

Rate

Annld

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Total Associates Net Revenues (millions)

Correlation between Associates and Revenue Growth

Significant Employee Ownership

(1) Approximate percentages include all fully diluted shares, units, options and shares owned by Stifel’s former Chairman as of September 4, 2009.

27%

40%Institutional

Other

Insider (1)

33%

Recent Equity Offerings

Type Date Shared Issued Price Net Proceeds

Secondary September-08 1,495,000 $45.00 $64.4

ATM June-09 1,000,000 $45.00 $43.9

Subtotal $108.3

Secondary September-09 1,725,000 $56.00 $91.8

Total $200.1

Execution of Growth Strategy

The September 2008 and June 2009 common offerings netted proceeds of $108 million

Since September 1, 2008, Stifel has invested approximately $172 million of capital through

both organic growth and acquisitions

$ 9

$ 7 6

$ 8 7

$ 1 7 2

$ 0

$ 20

$ 40

$ 60

$ 80

$ 100

$ 120

$ 140

$ 160

$ 180

$ 200

But l er Wi ck UBS Or gani c Gr owth T otal Ut i l i zed

Capi tal

( $ M )

Organic Growth

Expand private client footprint in the U.S.

Expand institutional equity business both domestically

and internationally

Grow investment banking

Focus on asset generation within banking operations

Enhance and accelerate Stifel Bank and Trust strategy

Approach acquisition opportunities with discipline

Consolidation and Industry Retrenchments Drive our Growth

Overall Growth Strategy

$11.8$17.2

$25.1

$48.9 $45.7

$71.3

24,98824,17721,803

13,0107,616 9,635

$0

$20

$40

$60

$80

2004 2005 2006 2007 2008 6/30/09

0

10,000

20,000

30,000

40,000

Total AUM # of Accounts

Net

Revenues ($MM)

Operating

Contribution ($MM)

Overview

Provides securities brokerage services and Stifel Bank products

1,900 Financial Advisors in 273 branch offices in 41 states and

the District of Columbia at October 16, 2009*

Proven organic growth and acquirer of private client business

Organically grown to hire 320 advisors in 25 offices in 2009

Acquired Butler Wick & Company, Inc., adding 75 advisors

in 23 offices across three states in December 2008

Acquired 56 branches from UBS Financial Services, Inc.

with 322 advisors

Strategy focused on recruiting experienced advisors with

established client relationships and further expanding our U.S.

footprint

Fee-Based Account Assets and #

of Accounts ($000’s)

$499

$750

$471$441

$231$197$187

$0

$200

$400

$600

$800

2004 2005 2006 2007 2008 6M09

Annld

Run Rate

Annld

* Represents total after UBS acquisition completed October 16, 2009 and Independent Contractors.

(1) Source: SIFMA 2008 Year Book Retail RRs.

(2) Source: Company Data, Goldman Sachs Research. $ in billions.

$79

$98$96

$50$48$48

$0

$30

$60

$90

$120

$150

2004 2005 2006 2007 2008 6M09

Annld

Global Wealth ManagementRank Company Headquarters RRs

(1)Client Assets

(2)

1 Citigroup/Smith Barney New York, NY 19,296 $1,034

2 Wells Fargo Securities St. Louis, MO 16,678 1,000+

3 Merrill Lynch & Co. New York, NY 15,880 1,475

4 Edward D. Jones St. Louis, MO 10,532 400

5 UBS Financial Services, Inc. Weehawken, NJ 8,182 537

6 RBC Dain Rauscher Minneapolis, MN 2,157 177

7 Stifel Proforma St. Louis, MO 1,891 74

8 Oppenheimer New York, NY 1,395 NA

9 Raymond James Financial New York, NY 1,218 170

10 Morgan Keegan & Co. Memphis, TN 1,075 NA

11 Janney Montgomery Philadelphia, PA 857 NA

12 Robert Baird Milwaukee, WI 591 NA

13 Hilliard Lyons Louisville, KY 410 NA

Strengths of our Brokerage Position

($B)

Global Wealth Management Growth

GWM Account Growth

* Represents total after UBS acquisition completed October 16, 2009 and Independent Contractors.

GWM Broker Growth

172,751

180,639

213,973

340,235

375,165

651,354

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000

October 2009

December 2008

December 2007

December 2006

December 2005

December 2004

Retail Accounts

621

644

735

1,163

1,315

1,900

0 500 1,000 1,500 2,000

October 2009

December 2008

December 2007

December 2006

December 2005

December 2004

Investment Executives

GWM Branch Growth

86

92

111

148

196

273

0 50 100 150 200 250 300

October 2009

December 2008

December 2007

December 2006

December 2005

December 2004

Retail Branches

Since the acquisition of Butler Wick, 717

Financial Advisors have joined Stifel, 397

through both the Butler Wick and UBS

acquisitions*

Stifel expects to see opportunities resulting

from continued dislocation from

competitors mergers

* *

*

ACAT Fee Reimbursement

2008 2009

Qtr No. ACAT

Reimbursed

Fees No. ACAT

Reimbursed

Fees

Q1 4,872 ($406,000) 15,857 ($1,384,000)

Q2 7,708 (653,000) 39,151 (3,657,000)

Total 12,580 ($1,059,000) 55,008 ($5,041,000)

Automated Customer Account Transfer System

Same Store Sales Commission ($ Millions)FAs Hired Prior to January 2008

830 Financial Advisors

$328

$0

$100

$200

$300

$400

$500

$600

$700

2008


10%

YOY


$328 $296

$0

$100

$200

$300

$400

$500

$600

$700

2008 Annualized 2009


1% YOY


$328 $296$332

$0

$100

$200

$300

$400

$500

$600

$700

2008 Annualized 2009 Last 2 Mo Annlzd

Potential GWM Commission ($ Millions)

$332$290

$622

$0

$100

$200

$300

$400

$500

$600

$700

2008 Group New Hires Potential GWM Commissions

830 Financial

Advisors

Potential

775 New

Financial

Advisors

14%

46%

40%

Cash $145MM

Investment Securities& Cash $495MM

Loans Receivable $418MM

59%

14%

10% 9%

8%Residential Real

EstateCommercial Real

EstateConsumer

Home Equity

Lines of CreditCommercial

Construction and

LandStock Secured

Loans

Stifel Bank

3% 8%8%

75%

6%

ABS $15MM

Corporates $41MM

Agencies $1MM

CMBS $38MM

Agency MBS $367MM

MBS $32MM

Muni's $1MM

Annualized Interest Earning AssetsCurrent Loan Portfolio

Residential Real Estate

$51.5MM

Commercial Real Estate

$36.3MM

Consumer $0.4MM

Home Equity Lines of Credit

$33.2

Commercial $29MM

Construction and Land

$1.1MM

Stock Secured Loans

$225.8MMTotal: $418MM

Current Investment Portfolio

Total: $495MMTotal: $1 Billion

Overview

April 2007- Acquired First Service Financial Company and

its wholly-owned subsidiary FirstService Bank, a

St. Louis-based Missouri commercial bank

Growth since acquisition

Assets of $1 billion, up over 600% from $130 million at

acquisition announcement

Deposits of $1 billion, up over 900% from $99 million

at acquisition announcement

Strategy and Opportunity

Maintains high asset quality:

$1.9 million Non-performing loans to gross loans

$1.7 million LTM losses to average loans

Offer banking products within the GWM client base

Establish trust services during 2010

738

184

517 510

608

716

0

200

400

600

800

1,000

2004 2005 2006 2007 2008 9/30/09

$56 $61

$204

$305

$390

$461$500

$0

$200

$400

$600

2004 2005 2006 2007 2008 6M 09

Annld

Run

Rate

Annld

Overview

Provides securities brokerage, trading, research services,

as well as underwriting and corporate advisory

738 associates located in 21 offices in the U.S.

Opportunistically expanding talent pool

Victor Nesi, Director of Investment Banking and

Co-Director of Capital Markets (June 2009)

William Heinzerling, Head of Fixed Income Capital

Markets (May 2009)

Hired 11-person sales & trading team from Bear

Stearns, a four-person convertible securities team

from Banc of America, and strategic hires from

Wachovia, JPMorgan, Barclays and others

$116

$92

$61

$43

$16$15

0

20

40

60

80

100

120

2004 2005 2006 2007 2008 6M09

Annld

Net Revenues ($MM) Operating Contribution ($MM) # of Employees

Highlights

Recognized Industry Expertise and Execution Capabilities

June 4, 2009 – Stifel analysts win six awards in the

Wall Street Journal’s Best on the Street Survey

May 19, 2009 – Stifel research analysts win fourteen

awards in FT / StarMine Analyst Survey

April 22, 2009- Stifel M&A Advisory and Corporate

Finance Transactions win “Deal of the Year” honors

March 19, 2009 – Stifel Nicolaus wins Consumer

M&A Deal of the Year Award

January 21, 2009 – Stifel research sweeps both #1

rankings in 2008 StarMine Survey

Research Coverage Stats (62 senior analysts covering

898 companies across 12 industry sectors)

Capital Markets

Capital Markets Market Opportunity

$150 billion annually with dislocation and deleveraging resulting in significant share opportunity

T reasuries &

A gencies

$ 30 billio n

C o rpo rates

$ 9 billio n

Equit ies

$ 13 billio n

M o rtgages

$ 54 billio n

A dviso ry

$ 21 billio n

D ebt C apital

M arkets

$ 14 billio n

Equity C apital

M arkets

$ 13 billio n

Sources: Investment Banking fees per Dealogic.

(1) Revenue data as of the first six months of 2009.

(2) Excludes fees for restructuring services driven by accelerating default rates and maturities.

Large Available Market Competitive Opportunity

~$50 billion annually in Investment Banking Fees (2)

$100+ billion annually in Secondary Commissions

Strong opportunity to grow our investment

banking share

Investment Banking Revenues (1)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

JMP KBW PJC RJF TWPG SF

Investment Banking (% of Capital Markets Rev.)

Peer Avg. 38%

Run Rate AnnualizedEstimated Revenue

Global Wealth Management $700 - $800

Capital Markets $450 - $550

Total $1,150 - $1,350

$0

$250

$500

$750

$1,000

$1,250

2002 2003 2004 2005 2006 2007 2008 Q2 09

Annld

Run

Rat e

AnnldGWM CM

$183 $211 $243 $259

$435

$743$862

$1,250

$963

$963$868$763$452

10%

14%14%15%

$0

$200

$400

$600

$800

$1,000

$1,200

2006 2007 2008 6M09 Annld

0%

5%

10%

15%

20%

Net Revenues (millions) Core Pre-Tax Margins

Pre-Tax Margins

*2006 through 2008 reflects CORE earnings. 2009 reflects GAAP.

($ in thousands)

Net

Revenues

Pre-Tax

Operating

Contributions

% of

Net Rev

As Reported 481,486$ 48,264$ 10%

Pro Forma Adjustments

Private Client Group (PCG)

PCG established business 22,207 9,929

PCG new business (29,445) 6,110

Bank excess liquidity 3,000 3,000

Firm overhead - 3,360

Pro Forma 477,248$ 70,663$ 15%

Normalized Pro FormaSix Months ended June 30, 2009

Note: Excludes merger-related equity compensation expenses and restructuring charges.

$80$35

$100$35

$131

$35$155

$70$220

$70$425

$95

$595

$82

$795

$82

$0

$250

$500

$750

$1,000

2002 2003 2004 2005 2006 2007 2008 Q2 2009

$5.91$7.23

$9.02 $10.21

$12.35

$18.36

$22.75

$24.86

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

2002 2003 2004 2005 2006 2007 2008 Q2 2009

Leverage Ratio(2)

Total Assets ($ millions) Total Capitalization ($ millions) (1)

Book Value Per Share

(1) Defined as stockholder’s equity plus the trust preferred securities. Total assets at 6/30/09 with September 2009 offering proceeds.(2) Defined as assets divided by total capitalization (equity + trust preferred). 6/30/09 includes September 2009 offering proceeds.

Stifel Balance Sheet

$115 $135$166

$225$290

$520

$678

$877

$423 $412 $382

$842

$1,085

$1,499$1,562

$2,288

$0

$600

$1,200

$1,800

$2,400

2002 2003 2004 2005 2006 2007 2008 Q2 2009

`

3.7x

3.1x

2.3x

3.7x 3.7x

2.9x

2.3x

2.7x

.0x

1.0x

2.0x

3.0x

4.0x

2002 2003 2004 2005 2006 2007 2008 Q2 2009

($ in thousands)

Total Assets (1)

2,379,792$

Stockholders' Equity (2)

794,502$

Debentures to:

Stifel Financial Capital Trust II - LIBOR plus 1.70% (fixed at 6.38% until 9/30/10), due 9/30/35 35,000$

Stifel Financial Capital Trust III - LIBOR plus 1.85% (fixed at 6.79% until 6/6/12), due 6/6/37 35,000

Stifel Financial Capital Trust IV - LIBOR plus 1.85% (fixed at 6.78% until 9/6/12), due 9/6/37 12,500

Total Debentures (average 6.64% per annum) 82,500$

Total Capitalization 877,002$

Ratios:

Equity to Assets 33%

Capitalization to Assets 37%

Debentures to Equity 10%

Leverage Ratio(3)

2.7x

Equity Capitalization(4)

3.0x

(1) Total assets at 6/30/09 with September 2009 offering proceeds

(2) Stockholders’ Equity at 6/30/09 with September 2009 offering proceeds

(3) Defined as assets divided by total capitalization.

(4) Defined as assets divided by equity.

Capital Structure

Level 3 Assets

Carrying Value Change

($ in thousands) 9/30/09 12/31/08

Auction Rate Securities 55,786$ 18,509$ 37,277$

Stifel Bank & Trust Investments 11,700 10,423 1,277

Trading Securities 767 4,161 (3,394)

Other Investments 5,093 5,169 (76)

73,346$ 38,262$ 35,084$

Percentage of Equity 9% 7%

Diversified well balanced business

Growth story

Industry dislocation provides significant

growth opportunities

Scalable platform

Disciplined acquirer and skilled integrator

Proven steward of investor capital

Why Buy Stifel Financial (SF)

stifel financial net revenues: $931mm ... sales and trading professionals 37 337 811% ... stifel has...

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