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Quarterly Earnings Report First Quarter 2025 Financial Results Presentation April 23, 2025
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Quarterly Earnings Report Record First Quarter Net Revenue First Quarter Snapshot 1 1Q25 RESULTS millions, except per share and ratios HIGHLIGHTS NET REVENUE 1Q25: GAAP & NON-GAAP $1,255 ANNUALIZED ROTCE* 1Q25:GAAP 5.0% & NON-GAAP 6.2% BOOK VALUE PER SHARE TBV $33.31 BV $47.08 Highest Equity Transactional Revenue Since Fourth Quarter 2021 Record First Quarter Net Revenue Global Wealth Management Record Asset Management Revenue Repurchased 2.0 million Common Shares Added 36 Financial Advisors From B. Riley Financial * Please see our definition of ROTCE in our first quarter 2025 earnings release NET EARNINGS 1Q25: GAAP $44 & NON-GAAP $54 EPS 1Q25: GAAP $0.39 & NON-GAAP $0.49 ANNUALIZED ROCE 1Q25:GAAP 3.5% & NON-GAAP 4.4%
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Quarterly Earnings Report First Quarter Operating Results 2 (1) Operating Expense = Non-Compensation Expense – Provision for Credit Loss (2) Provision for Credit Loss at bank subsidiary (3) Operating Expense Ratio excl udes Provision for Credit Loss (4) Please see our definition of ROTCE in our first quarter earnings release millions 1Q25 Y/Y Change Sequential Change Global Wealth Management $851 8% -2% Institutional 385 10% -20% Other 20 -6% -6% Net revenue 1,255 8% -8% Compensation expense 728 8% -8% Operating expense 1 259 3% -7% Provision for credit loss2 12 128% 1% Pre-tax pre-provision income 268 19% -9% Pre-tax income 256 15% -9% Taxes 64 36% 172% Net income 192 9% -26% Preferred dividends 9 0% 0% Net income available to common shareholders 183 10% -27% Diluted EPS $1.65 10% -26% Compensation ratio 58.0% 0 bps 0 bps Operating expense ratio3 20.6% -10 bps 20 bps Pre-tax operating margin 20.4% 0 bps -30 bps Book value per share $47.08 5% -4% Tangible book value per share $33.31 9% -5% ROTCE 4 26.8% 590 bps -150 bps Operating Results ex. Legal $1,163 $54 $18 $10 $6 $5 $1,255 millions $1,120 $1,140 $1,160 $1,180 $1,200 $1,220 $1,240 $1,260 $1,280 REVENUE BRIDGE millions 1Q25 Y/Y Change Sequential Change Non-GAAP Pre-tax Income $76 Legal $180 Adjusted Pre-tax Income $256 Adjusted Tax rate 25% Adjusted Net Income to Common Shareholders $183 Impact to EPS of Legal -$1.16 Non-GAAP EPS $0.49 Non-GAAP Operating expense ratio 3 34.7% 1330 bps 1460 bps Non-GAAP Pre-tax operating margin 6.1% -1370 bps -1460 bps Non-GAAP ROTCE4 6.2% -1470 bps -2210 bps Impact of Legal
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Quarterly Earnings Report Wealth Management: Continues to Drive Growth 3 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 $- $50 $100 $150 $200 $250 $300 $350 $400 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 3Q23 1Q24 3Q24 1Q25 Financial Advisors millions RECRUITING DRIVES REVENUE GROWTH T-12 Cumulative Production Cumulative Gross FAs 53% 60% 66% 66% 64% 66% 76% 78% 76% 77% 46% 39% 34% 32% 33% 32% 24% 22% 24% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 PERCENTAGE OF RECURRING REVENUE REMAINS HIGH Net Interest Income & Asset Management Fees Transactional & Investment Banking $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* Net Revenue (millions) CONSISTENT GROWTH Brokerage Asset Management & Service Fees Net Interest Investment Banking & Other *2025 GWM Net Revenue based on annualized results through 3/31/2025
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Quarterly Earnings Report Commentary on Variance to Analyst Estimates ■ Commissions & Principal Transactions: ■ Stronger Revenue from Institutional Equites ■ Lower Global Wealth Management & Institutional Fixed Income ■ Investment Banking: ■ Stronger Advisory Revenue ■ Stronger Equity Underwriting Revenue ■ Net Interest Income ■ Lower Net Interest Margin ■ Non-compensation Expense: ■ Includes $180 million of Legal Matters ■ Tax Rate: ■ Impact of Excess Tax Benefit in Stock-based Compensation Variance to Consensus Estimates 4 * Non-GAAP ** Impact of Legal Reserve calculated as legal reserves of $180 million, and adjusted tax rate of 25%, divided by the average diluted share count. (in Millions, except diluted EPS and share data) 1Q25 1Q25 Mean % Δ Revenues Operating* Analyst Commissions + Principal transactions $335 $354 (5%) Investment banking $238 $228 4% Asset management and service fees $410 $407 1% Net interest $262 $269 (3%) Net revenues $1,255 $1,269 (1%) Non-interest expenses Compensation and benefits 728 735 (6%) Compensation Ratio 58.0% 57.9% 10 bps Non-compensation expenses 451 280 (161%) Total non-interest expenses 1,179 1,015 (16%) Income before income taxes 76 254 (70%) Provision for income taxes 12 62 80% Tax Rate 16.4% 24.3% (790 bps) Net Income $64 $193 (67%) Diluted Operating EPS $0.49 $1.64 (70%) After-tax EPS Impact of Legal Reserve** ($1.16) First Quarter Results Variance to Consensus Estimates
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Quarterly Earnings Report HIGHLIGHTS ■ Record First Quarter Net Revenue ■ Record Quarterly Asset Management Revenue ■ Added 52 Financial Advisors, Including 9 Experienced with Total Trailing Twelve Month Production of $11.7 million ■ Non-compensation Expense Impacted by Legal Global Wealth Management 5 $791 $801 $827 $865 $851 36.8% 37.3% 36.5% 36.6% 35.6% $600 $650 $700 $750 $800 $850 $900 30% 35% 40% 45% 1Q24 2Q24 3Q24 4Q24 1Q25* Net Revenue (millions) Margin NET REVENUE & MARGIN Net Revenue Pre-tax Margin millions 1Q25 Y/Y Change Sequential Change Transactional $186 3% -7% Asset Management 410 11% 1% Net Interest 246 4% -4% Investment Banking 6 38% 14% Other 3 nm nm Total Global Wealth Management Net Revenue $851 8% -2% Comp. Ratio 49.6% 30 bps 110 bps Non-Comp. Ratio 35.5% 2160 bps 2060 bps Provision for credit loss $12 142% 1% Pre-tax Margin 14.9% -2190 bps -2170 bps Pre-tax Pre-provision Margin 16.3% -2120 bps -2160 bps millions 1Q25 Y/Y Sequential Change Total Client Assets $485,860 4% -3% Fee-based Client Assets $189,693 7% -2% Private Client Fee-based Client Assets $166,035 7% -1% CLIENT ASSET METRICS GLOBAL WEALTH MANAGEMENT REVENUE * Excludes impact of $180 mil. of legal expenses
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Quarterly Earnings Report Strong Bank Fundamentals 6 3.10% 3.19% 3.17% 3.24% 3.10% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 1Q24 2Q24 3Q24 4Q24 1Q25 CONSISTENT BANK NIM AS RATES DECLINE Net Interest Margin Deposit Costs Asset Yields 0.89% 0.88% 0.83% 0.85% 0.85% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 1Q24 2Q24 3Q24 4Q24 1Q25 ALLOWANCE FOR CREDIT LOSSES / TOTAL LOANS Residential SBL CRE Construction C&I Unfunded / Other reserves* Total Reserve Ratio ($742) ($623) $368 $1,308 ($920) $1,097 $258 $497 $800 ($691) $505 $651 $771 $1,305 $1,092 1Q24 2Q24 3Q24 4Q24 1Q25 millions CLIENT CASH LEVELS IMPACTED BY SEASONALITY Sweep Smart Rate Ticketed MMF 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net Interest Margin Bank Assets (000s) ASSET GROWTH & SOLID NIM Investments Commercial Loans Consumer Loans Cash & Other NIM
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Quarterly Earnings Report Institutional Group 7 * Includes net interest, asset management, and other income HIGHLIGHTS ■ Ranked #1 in Municipal Issuance in Number of Issues in 2025 with 13.2% Market Share ■ Strong Investment Banking Contribution from Financials Vertical ■ Highest Equity Transactional Revenue since Fourth Quarter 2021. * 2021 revenue based on annualized results through 9/30/2021 millions 1Q25 Y/Y Change Sequential Change Advisory $137 15% -28% Capital Raising $95 5% -14% Equity $49 22% 2% Fixed Income $46 -9% -26% Transactional $149 4% -16% Equity $60 10% 0% Fixed Income $89 1% -25% Total Institutional Revenue* $385 10% -20% Comp. Ratio 65.6% 420 bps 700 bps Non-Comp. Ratio 27.3% -70 bps 590 bps Pre-tax Margin 7.1% -350 bps -1290 bps INSTITUTIONAL GROUP REVENUE $0 $100 $200 $300 $400 $500 1Q24 2Q24 3Q24 4Q24 1Q25 millions INSTITUTIONAL GROUP NET REVENUE Advisory Fees Capital Raising Brokerage Other
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Quarterly Earnings Report Expenses 8 * For reconciliation of GAAP to non-GAAP expenses, refer to our first quarter 2025 earnings release. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2020 2021 2022 2023 2024 2025* millions ANNUAL GAAP to Non-GAAP RESULTS GAAP Net Income Available to Common Shareholders Non-GAAP After Tax Adjustments 58.0% 58.0% 58.0% 58.0% 58.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 53% 55% 57% 59% 61% 63% 65% 1Q24 2Q24 3Q24 4Q24 1Q25 Non-compensation Ratio Compensation Ratio Non-GAAP EXPENSE RATIOS Non-compensation Operating Ratio Impact of Legal Accrual IB Gross up & Loan Loss Provision Compensation Ratio *2025 annual GAAP to non-GAAP results based on annualized results through 3/31/2025 millions 1Q25 1Q24 Y/Y Change Compensation $728 $674 8% Non-compensation Expense, Ex. IB Gross Up & Credit Loss Provision $431 $245 76% Credit Loss Provision & IB Gross Up $21 $13 58% Non-compensation $451 $258 75% Pre-tax Income $64 $173 -63% NON-GAAP EXPENSES & PRE-TAX INCOME (000s) 1Q25 GAAP Net Income $52,992 Preferred Dividend $9,320 Net Income available to common Shareholders $43,672 Non-GAAP After Tax Adjustments $10,564 Non-GAAP Net Income Available to Common Shareholders $54,236 GAAP to Non-GAAP RECONCILIATION
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Quarterly Earnings Report Capital Utilization 9 $38,258 $37,809 $38,935 $39,896 $40,384 10.6% 11.1% 11.3% 11.4% 10.8% 17.3% 17.8% 17.9% 18.2% 17.6% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 1Q24 2Q24 3Q24 4Q24 1Q25 millions FIRM-WIDE ASSETS & CAPITAL RATIOS Assets Tier 1 Leverage Tier 1 Risk Based Capital $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2020 2021 2022 2023 2024 2025 millions BANK FUNDING: A TRACK RECORD of GROWTH Bank Deposits Available Funding($200,000) $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2020 2021 2022 2023 2024 2025 (000s) DEPLOYING EXCESS CAPITAL Capital Generated Bank Growth Common Stock Repurchases Dividends (Common & Preferred) *2024 Estimated Capital Generated based annualized 1Q24 Net Income plus current capital in excess of regulatory minimum. HIGHLIGHTS ■ Repurchased 900,000 Shares in Open Market ■ Net Settled 1.1 million Shares tied to Equity-based Compensation ■ 9.2 million Shares in Total Authorization ■ Total Assets Increased $488 million ■ Bank Funding Increased at CAGR of 10% Since 2020 *2024 based on results through 3/31/2024
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Quarterly Earnings Report Concluding Remarks
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Quarterly Earnings Report First Quarter 2025 Financial Results Presentation April 23, 2025
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Quarterly Earnings Report Disclaimer 12 Forward-Looking Statements This presentation may contain “forward-looking statements” within the mea ning of the Private Securities Litiga tion Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statement s relating to the market opportunity a nd future business prospects of Stif el Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiar ies (collectively, “SF” or the “Company”). These statements can be ident ified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “po tential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “ expect,” and similar expressions. All statements not dealing with historical resul ts are forward-looking and are based on various assumptions. The forward-looking statements are su bject to risks and uncertainties that could cause actual results to differ material ly from those expressed in or implied by the statements. For information ab out the risks and important factors that coul d affect the Company’s future results, financial conditi on and liquidity, see “Risk Factors” in Part I of the Com pany’s Annual Report on Form 10-K for the year ended December 31, 2024. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements t o reflect circumstances or events that occur after the date the forward-lo oking statements are made. Use of Non-GAAP Financial Measures The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Co mpany may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measu re” as a numerical measure of historical or future financial performance , financial position, or cash flows that is subject to adjustments that effectively exclude, or inclu de, amounts from the most directly comparable mea sure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial m easures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with gr eater transparency about, or an alternative method for assessing the Comp any’s financial condition or operating results. These measures are not in accordance with, or a substitu te for U.S. GAAP, and may be different from or incons istent with non-GAAP financial measures used by other companies. Whenever the Com pany refers to a non-GAAP financial measure, it will also define it or prese nt t h em o s td i r e c t l yc o m p a r a b l ef i n a n c i a lm e a s u r ec a l c u l a t e da n dp r e s e n t e di na c c o r d a n c ew i t hU . S .G A A P ,a l o n gw i t har e c o n c i l i a t i o no ft h ed i f f e r e n c es between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.