The following discussion of the financial condition and results of operations of the Company should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and the accompanying consolidated financial statements and notes thereto contained in this Quarterly Report on Form 10-Q.
Certain statements in this report may be considered forward-looking. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements cover, among other things, statements made about general economic and market conditions, the investment banking industry, objectives and results, and also may include our belief regarding the effect of various legal proceedings, management expectations, our liquidity and funding sources, counterparty credit risk, or other similar matters.
Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including those factors discussed under “Economic and Market Conditions” in Part II, Item 1A in this Quarterly Report on Form 10-Q, as well as the factors identified under “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated in our subsequent reports filed with the SEC. These reports are available at the Company’s web site at www.stifel.com and at the SEC web site at www.sec.gov.
Because of these and other uncertainties, the Company’s actual future results may be materially different from the results indicated by these forward-looking statements. In addition, the Company’s past results of operations do not necessarily indicate its future results. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events, unless it is obligated to do so under federal securities laws.
Unless otherwise indicated, the terms “we,” “us,” “our,” or “our company” in this report refer to Stifel Financial Corp. and its wholly owned subsidiaries.
Executive Summary
We operate as a financial services and bank holding company. We have built a diversified business serving private clients, institutional investors, and investment banking clients located across the U.S., Europe, and Canada. Our principal activities are: (i) private client services, including securities transaction and financial planning services; (ii) institutional equity and fixed income sales, trading and research, and municipal finance; (iii) investment banking services, including mergers and acquisitions, public offerings, and private placements; and (iv) retail and commercial banking, including personal and commercial lending programs.
Our core philosophy is based upon a tradition of trust, understanding, and studied advice. We attract and retain experienced professionals by fostering a culture of entrepreneurial, long-term thinking. We provide our private, institutional and corporate clients quality, personalized service, with the theory that if we place clients’ needs first, both our clients and our company will prosper. Our unwavering client and associate focus have earned us a reputation as one of the nation’s leading wealth management and investment banking firms. We have grown our business both organically and through opportunistic acquisitions.
We plan to maintain our focus on revenue growth with a continued appreciation for the development of quality client relationships. Within our private client business, our efforts will be focused on recruiting experienced financial advisors with established client relationships. Within our capital markets business, our focus continues to be on providing quality client management and product diversification. 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.
Stifel Financial Corp., through its wholly owned subsidiaries, is principally engaged in retail brokerage; securities trading; investment banking; investment advisory; retail, consumer, and commercial banking; and related financial services. Our major geographic area of concentration is throughout the United States, the United Kingdom, Europe, and Canada. Our principal customers are individual investors, corporations, municipalities, and institutions.
Our ability to attract and retain highly skilled and productive associates is critical to the success of our business. 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 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. All share and per share information has been retroactively adjusted to reflect the stock split.
On February 2, 2026, the Company sold Stifel Independent Advisors, LLC (“SIA”), a wholly owned subsidiary and independent contractor broker-dealer, to an affiliate of Equitable, a financial services organization and principal franchise of Equitable Holdings, Inc. We recognized a gain on the sale of $47.3 million that is included in other income in the accompanying consolidated statements of operations. The results of operations of SIA have been included in our results up to the date of disposition.
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Results for the three and six months ended June 30, 2026
For the three months ended June 30, 2026, net revenues increased 13.0% to $1.5 billion from $1.3 billion during the comparable period in 2025. Net income available to common shareholders increased 49.0% to $217.2 million, or $1.34 per diluted common share for the three months ended June 30, 2026, compared to $145.7 million, or $0.89 per diluted common share during the comparable period in 2025.
Our revenue growth was primarily attributable to higher investment banking revenues, asset management revenues, commission revenues, and net interest income.
For the six months ended June 30, 2026, net revenues increased 15.3% to $2.9 billion compared to $2.5 billion during the comparable period in 2025. Net income available to common shareholders increased 142.5% to $459.3 million, or $2.83 per diluted common share for the six months ended June 30, 2026, compared to $189.4 million, or $1.15 per diluted common share during the comparable period in 2025.
Our revenue growth was primarily attributable to higher investment banking revenues, asset management revenues, commission revenues, net interest income, and the recognition of a gain on the sale of SIA during the first quarter.
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. Market volatility, overall market conditions, interest rates, economic, political, and regulatory trends, and industry competition are among the factors which could affect us and which are unpredictable and beyond our control. These factors affect the financial decisions made by market participants who include investors and competitors, impacting their level of participation in the financial markets. In addition, in periods of reduced financial market activity, profitability is likely to be adversely affected because certain expenses remain relatively fixed, including salaries and related costs, as well as portions of communications costs and occupancy expenses. Accordingly, earnings for any period should not be considered representative of earnings to be expected for any other period.
For more information on economic and market conditions, and the potential effects of geopolitical events on our future results, refer to “Risk Factors” in the 2025 Form 10-K.
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RESULTS OF OPERATIONS
Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
The following table presents consolidated financial information for the periods indicated (in thousands, except percentages):
Three Months Ended June 30, As a Percentage of Net Revenues For the Three Months Ended June 30,
2026 2025 % Change 2026 2025
Revenues:
Commissions $ 221,462 $ 200,669 10.4 15.3 % 15.6 %
Principal transactions 140,091 172,603 (18.8 ) 9.6 13.5
Transactional revenues 361,553 373,272 (3.1 ) 24.9 29.1
Investment banking 331,954 233,460 42.2 22.9 18.2
Asset management 456,630 403,608 13.1 31.5 31.4
Interest 476,093 477,056 (0.2 ) 32.8 37.1
Other income 12,549 3,690 240.1 0.9 0.3
Total revenues 1,638,779 1,491,086 9.9 113.0 116.1
Interest expense 187,975 206,800 (9.1 ) 13.0 16.1
Net revenues 1,450,804 1,284,286 13.0 100.0 100.0
Non-interest expenses:
Compensation and benefits 833,018 774,936 7.5 57.4 60.3
Occupancy and equipment rental 100,555 95,678 5.1 6.9 7.5
Communication and office supplies 46,341 47,847 (3.1 ) 3.2 3.7
Commissions and floor brokerage 15,039 17,146 (12.3 ) 1.0 1.3
Provision for credit losses 12,538 8,328 50.6 0.9 0.6
Other operating expenses 143,875 126,531 13.7 10.0 10.0
Total non-interest expenses 1,151,366 1,070,466 7.6 79.4 83.4
Income before income taxes 299,438 213,820 40.0 20.6 16.6
Provision for income taxes 72,961 58,765 24.2 5.0 4.6
Net income 226,477 155,055 46.1 15.6 12.0
Preferred dividends 9,321 9,321 — 0.6 0.7
Net income available to common shareholders $ 217,156 $ 145,734 49.0 15.0 % 11.3 %
54
Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
The following table presents consolidated financial information for the periods indicated (in thousands, except percentages):
Six Months Ended June 30, As a Percentage of Net Revenues For the Six Months Ended June 30,
2026 2025 % Change 2026 2025
Revenues:
Commissions $ 429,296 $ 394,339 8.9 14.7 % 15.5 %
Principal transactions 290,312 314,263 (7.6 ) 9.9 12.4
Transactional revenues 719,608 708,602 1.6 24.6 27.9
Investment banking 673,366 471,402 42.8 23.0 18.6
Asset management 916,087 813,149 12.7 31.3 32.0
Interest 927,142 952,688 (2.7 ) 31.7 37.5
Other income 68,228 14,271 378.1 2.2 0.6
Total revenues 3,304,431 2,960,112 11.6 112.8 116.6
Interest expense 375,466 420,357 (10.7 ) 12.8 16.6
Net revenues 2,928,965 2,539,755 15.3 100.0 100.0
Non-interest expenses:
Compensation and benefits 1,681,352 1,507,156 11.6 57.4 59.3
Occupancy and equipment rental 200,250 186,444 7.4 6.8 7.4
Communication and office supplies 97,362 97,360 0.0 3.3 3.8
Commissions and floor brokerage 30,080 33,952 (11.4 ) 1.0 1.3
Provision for credit losses 19,073 20,348 (6.3 ) 0.7 0.8
Other operating expenses 275,338 417,311 (34.0 ) 9.4 16.5
Total non-interest expenses 2,303,455 2,262,571 1.8 78.6 89.1
Income before income taxes 625,510 277,184 125.7 21.4 10.9
Provision for income taxes 147,614 69,137 113.5 5.1 2.7
Net income 477,896 208,047 129.7 16.3 8.2
Preferred dividends 18,641 18,641 — 0.6 0.7
Net income available to common shareholders $ 459,255 $ 189,406 142.5 15.7 % 7.5 %
NET REVENUES
The following table presents consolidated net revenues for the periods indicated (in thousands, except percentages):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
Net revenues:
Commissions $ 221,462 $ 200,669 10.4 $ 429,296 $ 394,339 8.9
Principal transactions 140,091 172,603 (18.8 ) 290,312 314,263 (7.6 )
Transactional revenues 361,553 373,272 (3.1 ) 719,608 708,602 1.6
Capital raising 174,456 106,155 64.3 297,430 206,627 43.9
Advisory 157,498 127,305 23.7 375,936 264,775 42.0
Investment banking 331,954 233,460 42.2 673,366 471,402 42.8
Asset management 456,630 403,608 13.1 916,087 813,149 12.7
Net interest 288,118 270,256 6.6 551,676 532,331 3.6
Other income 12,549 3,690 240.1 68,228 14,271 378.1
Total net revenues $ 1,450,804 $ 1,284,286 13.0 $ 2,928,965 $ 2,539,755 15.3
55
Commissions – Commission revenues are primarily generated from agency transactions in OTC and listed equity securities, insurance products, and options. In addition, commission revenues also include distribution fees for promoting and distributing mutual funds.
For the three months ended June 30, 2026, commission revenues increased 10.4% to $221.5 million from $200.7 million in the comparable period in 2025. For the six months ended June 30, 2026, commission revenues increased 8.9% to $429.3 million from $394.3 million in the comparable period in 2025. The increase is primarily attributable to higher volumes due to increased market volatility over the comparable periods in 2025.
Principal transactions – Principal transaction revenues are gains and losses on secondary trading, principally fixed income transactional revenues.
For the three months ended June 30, 2026, principal transactions revenues decreased 18.8% to $140.1 million from $172.6 million in the comparable period in 2025. For the six months ended June 30, 2026, principal transactions revenues decreased 7.6% to $290.3 million from $314.3 million in the comparable period in 2025. The decrease is primarily attributable to lower realized trading gains in our aircraft business over the comparable periods in 2025. Principal transactions for the three months ended June 30, 2025 benefited from a roughly $30 million gain in our aircraft business.
Investment banking – Investment banking revenues include: (i) capital-raising revenues representing fees earned from the underwriting of debt and equity securities, and (ii) advisory fees related to corporate debt and equity offerings, municipal debt offerings, merger and acquisitions, private placements, and other investment banking advisory fees.
For the three months ended June 30, 2026, investment banking revenues increased 42.2% to $332.0 million from $233.5 million in the comparable period in 2025.
Capital-raising revenues increased 64.3% to $174.5 million for the three months ended June 30, 2026 from $106.2 million in the comparable period in 2025. For the three months ended June 30, 2026, equity capital-raising revenues increased 120.1% to $107.2 million from $48.7 million in the comparable period in 2025 driven by higher volumes and larger deal sizes during the quarter. For the three months ended June 30, 2026, fixed income capital-raising revenues increased 17.1% to $67.3 million from $57.5 million in the comparable period in 2025 driven by higher bond issuances during the quarter.
Advisory revenues increased 23.7% to $157.5 million for the three months ended June 30, 2026 from $127.3 million in the comparable period in 2025. The increase is primarily attributable to higher levels of completed advisory transactions during the quarter.
For the six months ended June 30, 2026, investment banking revenues increased 42.8% to $673.4 million from $471.4 million in the comparable period in 2025.
Capital-raising revenues increased 43.9% to $297.4 million for the six months ended June 30, 2026 from $206.6 million in the comparable period in 2025. For the six months ended June 30, 2026, equity capital-raising revenues increased 76.7% to $177.4 million from $100.4 million in the comparable period in 2025 driven by higher volumes and larger deal sizes. For the six months ended June 30, 2026, fixed income capital-raising revenues increased 13.0% to $120.0 million from $106.2 million in the comparable period in 2025 driven by higher bond issuances.
Advisory revenues increased 42.0% to $375.9 million for the six months ended June 30, 2026 from $264.8 million in the comparable period in 2025. The increase is primarily attributable to higher levels of completed advisory transactions.
Asset management – Asset management revenues are primarily generated by the investment advisory fees related to asset management services provided for individual and institutional investment portfolios, along with mutual funds. Investment advisory fees are earned on assets held in managed or non-discretionary asset-based programs. Fees from private client investment portfolios and institutional fees are typically based on asset values at the end of the prior period. Asset balances are impacted by both the performance of the market and levels of net new client assets. Rising markets have historically had a positive impact on investment advisory fee revenues as existing accounts increase in value, and individuals and institutions may commit incremental funds in rising markets.
For the three months ended June 30, 2026, asset management revenues increased 13.1% to $456.6 million from $403.6 million in the comparable period in 2025. For the six months ended June 30, 2026, asset management revenues increased 12.7% to $916.1 million from $813.1 million in the comparable period in 2025. Please refer to “Asset management” in the Global Wealth Management segment discussion for information on the changes in asset management revenues.
Other income – Other income primarily includes investment gains and losses, rental income, and loan originations fees. For the three months ended June 30, 2026, other income increased 240.1% to $12.5 million from $3.7 million during the comparable period in 2025. The increase is primarily attributable to increases in investment gains from the comparable period in 2025.
For the six months ended June 30, 2026, other income increased 378.1% to $68.2 million from $14.3 million during the comparable period in 2025. The increase is primarily attributable to the recognition of a gain on the sale of SIA during the first quarter of 2026 and higher loan origination fees from the comparable period in 2025.
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NET INTEREST INCOME
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):
Three Months Ended
June 30, 2026 June 30, 2025
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 $ 2,000,127 $ 17,806 3.56 % $ 1,924,481 $ 20,785 4.32 %
Financial instruments owned 1,489,031 9,030 2.43 % 1,367,147 9,333 2.73 %
Margin balances 1,114,636 16,906 6.07 % 830,191 14,363 6.92 %
Investments:
Asset-backed securities 6,795,344 90,581 5.33 % 6,735,215 101,831 6.05 %
Mortgage-backed securities 1,222,685 10,859 3.55 % 1,133,267 8,953 3.16 %
Corporate fixed income securities 361,133 2,211 2.45 % 464,795 3,129 2.69 %
Other 4,776 31 2.55 % 4,768 30 2.55 %
Total investments 8,383,938 103,682 4.95 % 8,338,045 113,943 5.47 %
Loans:
Residential real estate 9,465,761 98,585 4.17 % 8,798,381 84,966 3.86 %
Commercial and industrial 4,393,760 68,664 6.25 % 4,005,416 73,194 7.31 %
Fund banking 4,736,170 73,168 6.18 % 3,773,860 67,006 7.10 %
Securities-based loans 2,875,249 39,439 5.49 % 2,503,299 38,717 6.19 %
Construction and land 1,105,860 18,194 6.58 % 1,214,370 21,824 7.19 %
Commercial real estate 421,083 6,474 6.15 % 449,283 9,637 8.58 %
Loans held for sale 348,180 6,767 7.77 % 496,926 10,822 8.71 %
Other 276,745 4,658 6.73 % 250,597 4,469 7.13 %
Total loans 23,622,808 315,949 5.35 % 21,492,132 310,635 5.78 %
Other interest-bearing assets 1,155,589 12,720 4.40 % 928,043 7,997 3.45 %
Total interest-earning assets/interest income $ 37,766,129 $ 476,093 5.04 % $ 34,880,039 $ 477,056 5.47 %
Interest-bearing liabilities:
Stock loan $ 501,832 $ 337 0.27 % $ 386,472 $ (1,292 ) (1.34 %)
Senior notes 617,720 7,131 4.62 % 616,895 7,131 4.62 %
Stifel Capital Trusts 55,000 805 5.85 % 60,000 973 6.48 %
Deposits:
Money market 24,666,105 121,792 1.98 % 25,493,543 163,007 2.56 %
Demand deposits 5,311,309 38,552 2.90 % 2,875,712 23,598 3.28 %
Time deposits 332,628 3,050 3.67 % 84,864 904 4.26 %
Savings 38,039 109 1.15 % 8,913 24 1.07 %
Total deposits 30,348,081 163,503 2.16 % 28,463,032 187,533 2.64 %
Federal Home Loan Bank advances 33,191 279 3.36 % 3,301 38 4.59 %
Other interest-bearing liabilities 1,340,994 15,920 4.75 % 1,113,481 12,417 4.46 %
Total interest-bearing liabilities/interest expense $ 32,896,818 187,975 2.29 % $ 30,643,181 206,800 2.70 %
Net interest income/margin $ 288,118 3.05 % $ 270,256 3.10 %
57
Six Months Ended
June 30, 2026 June 30, 2025
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 $ 2,153,747 $ 38,131 3.54 % $ 2,175,904 $ 47,120 4.33 %
Financial instruments owned 1,502,981 17,408 2.32 % 1,304,836 15,879 2.43 %
Margin balances 1,068,766 32,308 6.05 % 833,005 28,234 6.78 %
Investments:
Asset-backed securities 6,676,626 178,026 5.33 % 6,676,623 203,275 6.09 %
Mortgage-backed securities 1,202,837 21,155 3.52 % 1,125,256 17,595 3.13 %
Corporate fixed income securities 367,289 4,606 2.51 % 480,440 6,539 2.72 %
Other 4,772 61 2.55 % 4,764 61 2.55 %
Total investments 8,251,524 203,848 4.94 % 8,287,083 227,470 5.49 %
Loans:
Residential real estate 9,383,069 194,004 4.14 % 8,716,412 165,989 3.81 %
Commercial and industrial 4,283,398 131,411 6.14 % 4,059,148 148,687 7.33 %
Fund banking 4,301,480 132,590 6.16 % 3,785,965 133,444 7.05 %
Securities-based loans 2,776,509 76,006 5.47 % 2,445,861 75,262 6.15 %
Construction and land 1,178,232 38,643 6.56 % 1,215,459 43,593 7.17 %
Commercial real estate 429,031 13,856 6.46 % 473,682 17,787 7.51 %
Loans held for sale 410,161 17,036 8.31 % 542,732 22,039 8.12 %
Other 274,056 8,790 6.42 % 249,718 8,801 7.05 %
Total loans 23,035,936 612,336 5.32 % 21,488,977 615,602 5.73 %
Other interest-bearing assets 1,113,639 23,111 4.15 % 962,371 18,383 3.82 %
Total interest-earning assets/interest income $ 37,126,593 $ 927,142 4.99 % $ 35,052,176 $ 952,688 5.44 %
Interest-bearing liabilities:
Stock loan $ 471,890 2,330 0.99 % $ 341,233 $ (1,647 ) (0.97 %)
Senior notes 617,617 14,262 4.62 % 616,793 14,262 4.62 %
Stifel Capital Trusts 55,000 1,593 5.79 % 60,000 1,938 6.46 %
Deposits:
Money market 25,030,578 247,236 1.98 % 26,064,970 341,060 2.62 %
Demand deposits 4,304,059 59,735 2.78 % 2,377,358 37,417 3.15 %
Time deposits 390,618 7,264 3.72 % 93,402 2,143 4.59 %
Savings 29,123 156 1.07 % 6,764 35 1.04 %
Total deposits 29,754,378 314,391 2.11 % 28,542,494 380,655 2.67 %
Federal Home Loan Bank advances 16,687 279 3.35 % 1,660 38 4.56 %
Other interest-bearing liabilities 1,285,651 42,611 6.63 % 1,105,905 25,111 4.54 %
Total interest-bearing liabilities/interest expense $ 32,201,223 375,466 2.33 % $ 30,668,085 420,357 2.74 %
Net interest income/margin $ 551,676 2.97 % $ 532,331 3.04 %
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The following table sets forth an analysis of the effect on net interest income of volume and rate changes for the three and six month periods ended June 30, 2026 compared to the three and six month periods ended June 30, 2025 (in thousands):
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Increase/(decrease) due to: Increase/(decrease) due to:
Volume Rate Total Volume Rate Total
Interest income:
Interest-bearing cash and federal funds sold $ 858 $ (3,837 ) $ (2,979 ) $ (475 ) $ (8,514 ) $ (8,989 )
Financial instruments owned 1,200 (1,503 ) (303 ) 2,241 (712 ) 1,529
Margin balances 3,973 (1,430 ) 2,543 6,592 (2,518 ) 4,074
Investments:
Asset-backed securities 918 (12,168 ) (11,250 ) — (25,249 ) (25,249 )
Mortgage-backed securities 740 1,166 1,906 1,267 2,293 3,560
Corporate fixed income securities (653 ) (265 ) (918 ) (1,449 ) (484 ) (1,933 )
Other 1 — 1 — — —
Loans:
Residential real estate 6,694 6,925 13,619 13,208 14,807 28,015
Commercial and industrial 9,179 (13,709 ) (4,530 ) 8,902 (26,178 ) (17,276 )
Fund banking 12,562 (6,400 ) 6,162 9,126 (9,980 ) (854 )
Securities-based loans 3,026 (2,304 ) 722 4,054 (3,310 ) 744
Construction and land (1,865 ) (1,765 ) (3,630 ) (1,305 ) (3,645 ) (4,950 )
Commercial real estate (574 ) (2,589 ) (3,163 ) (1,582 ) (2,349 ) (3,931 )
Loans held for sale (2,983 ) (1,072 ) (4,055 ) (5,519 ) 516 (5,003 )
Other 488 (299 ) 189 797 (808 ) (11 )
Other interest-bearing assets 2,217 2,506 4,723 3,051 1,677 4,728
Total interest income $ 35,781 $ (36,744 ) $ (963 ) $ 38,908 $ (64,454 ) $ (25,546 )
Interest expense:
Stock loan $ 324 1,305 $ 1,629 $ 633 $ 3,344 $ 3,977
Senior notes — — — — — —
Stifel Capital Trusts (78 ) (90 ) (168 ) (154 ) (191 ) (345 )
Deposits:
Money market (5,140 ) (36,075 ) (41,215 ) (13,073 ) (80,751 ) (93,824 )
Demand deposits 17,315 (2,361 ) 14,954 26,128 (3,810 ) 22,318
Time deposits 2,253 (107 ) 2,146 5,445 (324 ) 5,121
Savings 83 2 85 120 1 121
Federal Home Loan Bank advances 248 (7 ) 241 248 (7 ) 241
Other interest-bearing liabilities 2,662 841 3,503 4,570 12,930 17,500
Total interest expense $ 17,667 $ (36,492 ) $ (18,825 ) $ 23,917 $ (68,808 ) $ (44,891 )
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. 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.
Net interest income – Net interest income is the difference between interest earned on interest-earning assets and interest paid on funding sources. 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 three months ended June 30, 2026, net interest income increased 6.6% to $288.1 million from $270.3 million during the comparable period in 2025. For the six months ended June 30, 2026, net interest income increased 3.6% to $551.7 million from $532.3 million during the comparable period in 2025.
For the three months ended June 30, 2026, interest revenue decreased 0.2% to $476.1 million from $477.1 million in the comparable period in 2025, principally as a result of a decrease in interest rates, partially offset by higher interest-earning assets. The average interest-earning assets of Stifel Bancorp increased to $33.0 billion during the three months ended June 30, 2026 compared to $31.0 billion during the comparable period in 2025 at average interest rates of 5.24% and 5.66%, respectively.
59
For the six months ended June 30, 2026, interest revenue decreased 2.7% to $927.1 million from $952.7 million in the comparable period in 2025, principally as a result of a decrease in interest rates, partially offset by higher interest-earning assets. The average interest-earning assets of Stifel Bancorp increased to $32.4 billion during the six months ended June 30, 2026 compared to $31.1 billion during the comparable period in 2025 at average interest rates of 5.19% and 5.62%, respectively.
For the three months ended June 30, 2026, interest expense decreased 9.1% to $188.0 million from $206.8 million during the comparable period in 2025. The decrease is primarily attributable to lower interest rates, partially offset by higher interest-bearing liabilities. The average interest-bearing liabilities of Stifel Bancorp increased to $30.5 billion during the three months ended June 30, 2026 compared to $28.6 billion during the comparable period in 2025 at average interest rates of 2.17% and 2.65%, respectively.
For the six months ended June 30, 2026, interest expense decreased 10.7% to $375.5 million from $420.4 million in the comparable period in 2025. The decrease is primarily attributable to lower interest rates, partially offset by higher interest-bearing liabilities. The average interest-bearing liabilities of Stifel Bancorp increased to $29.9 billion during the six months ended June 30, 2026 compared to $28.7 billion during the comparable period in 2025 at average interest rates of 2.13% and 2.68%, respectively.
NON-INTEREST EXPENSES
The following table presents consolidated non-interest expenses for the periods indicated (in thousands, except percentages):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
Non-interest expenses:
Compensation and benefits $ 833,018 $ 774,936 7.5 $ 1,681,352 $ 1,507,156 11.6
Occupancy and equipment rental 100,555 95,678 5.1 200,250 186,444 7.4
Communications and office supplies 46,341 47,847 (3.1 ) 97,362 97,360 0.0
Commissions and floor brokerage 15,039 17,146 (12.3 ) 30,080 33,952 (11.4 )
Provision for credit losses 12,538 8,328 50.6 19,073 20,348 (6.3 )
Other operating expenses 143,875 126,531 13.7 275,338 417,311 (34.0 )
Total non-interest expenses $ 1,151,366 $ 1,070,466 7.6 $ 2,303,455 $ 2,262,571 1.8
Compensation and benefits – Compensation and benefits expenses, which are the largest component of our expenses, include salaries, bonuses, transition pay, benefits, amortization of stock-based compensation, employment taxes, and other associate-related costs. A significant portion of compensation expense is comprised of production-based variable compensation, including discretionary bonuses, which fluctuates in proportion to the level of business activity, increasing with higher revenues and operating profits. Other compensation costs, including base salaries, stock-based compensation amortization, and benefits, are more fixed in nature.
For the three months ended June 30, 2026, compensation and benefits expense increased 7.5% to $833.0 million from $774.9 million during the comparable period in 2025. For the six months ended June 30, 2026, compensation and benefits expense increased 11.6% to $1.7 billion from $1.5 billion during the comparable period in 2025. The increase in compensation and benefits expenses is primarily attributable to higher variable compensation costs over the comparable periods in 2025.
Compensation and benefits expense as a percentage of net revenues was 57.4% and 57.4% for the three and six months ended June 30, 2026, respectively, compared to 60.3% and 59.3% for the three and six months ended June 30, 2025, respectively. The decrease is primarily attributable to to revenue growth, partially offset by higher revenue-related compensation over the comparable period in 2025.
Occupancy and equipment rental – For the three months ended June 30, 2026, occupancy and equipment rental expense increased 5.1% to $100.6 million from $95.7 million during the comparable period in 2025. For the six months ended June 30, 2026, occupancy and equipment rental expense increased 7.4% to $200.3 million from $186.4 million during the comparable period in 2025. The increase is primarily attributable to higher data processing expense and furniture and equipment costs associated with an increase in business activity over the comparable periods in 2025.
Communications and office supplies – Communications expense includes costs for telecommunication and data transmission, primarily for obtaining third-party market data information. For the three months ended June 30, 2026, communications and office supplies expense decreased 3.1% to $46.3 million from $47.8 million during the comparable period in 2025. The decrease is primarily attributable to lower communication and quote equipment expenses, office supplies expenses, and telecommunication expenses, partially offset by higher postage and shipping expenses over the comparable period in 2025. For the six months ended June 30, 2026, communications and office supplies expense of $97.4 million was consistent with the comparable period in 2025.
Commissions and floor brokerage – For the three months ended June 30, 2026, commissions and floor brokerage expense decreased 12.3% to $15.0 million from $17.1 million during the comparable period in 2025. For the six months ended June 30, 2026, commissions and floor brokerage expense decreased 11.4% to $30.1 million from $34.0 million during the comparable period in 2025. The decrease is primarily attributable to lower clearing expenses, electronic communication network (“ECN”) trading costs, processing expenses, and transaction fees.
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Provision for credit losses – For the three months ended June 30, 2026, provision for credit losses increased 50.6% to $12.5 million from $8.3 million during the comparable period in 2025. The increase is primarily attributable to overall loan growth in the retained portfolio and specific reserves on individual credits. For the six months ended June 30, 2026, provision for credit losses decreased 6.3% to $19.1 million from $20.3 million during the comparable period in 2025. The decrease is primarily attributable to modest improvement in macroeconomic conditions, partially offset by loan growth in the retained portfolio and specific reserves on individual credits.
Other operating expenses – Other operating expenses primarily include license and registration fees, litigation-related expenses, which consist of amounts we accrue and/or pay out related to legal and regulatory matters, travel and entertainment, promotional expenses and expenses for professional services.
For the three months ended June 30, 2026, other operating expenses increased 13.7% to $143.9 million from $126.5 million during the comparable period in 2025. The increase is primarily attributable to higher travel-related expenses, investment banking expenses, advertising, amortization of identifiable intangible assets, bank service charges, insurance expenses, and subscriptions, partially offset by lower legal-related expenses, conference-related expenses, professional fees, and licensing fees.
For the six months ended June 30, 2026, other operating expenses decreased 34.0% to $275.3 million from $417.3 million during the comparable period in 2025. The decrease is primarily attributable to lower legal-related expenses, conference-related expenses, and licensing fees, partially offset by higher amortization of identifiable intangible assets, travel-related expenses, advertising, professional fees, investment banking expenses, insurance expenses, and subscriptions. During the first quarter of 2025, we recorded $180.0 million related to provisions for legal-related matters.
Provision for income taxes – For the three and six months ended June 30, 2026, our provision for income taxes was $73.0 million and $147.6 million, representing an effective tax rate of 24.4% and 23.6%, respectively, compared to $58.8 million and $69.1 million for the comparable periods in 2025, representing an effective tax rate of 27.5% and 24.9%, respectively.
SEGMENT ANALYSIS
Our reportable segments include Global Wealth Management, Institutional Group, and Other.
Our Global Wealth Management segment consists of two businesses, the Private Client Group and Stifel Bancorp. The Private Client Group includes branch offices and, from the period January 1, 2026 through February 2, 2026, independent contractor offices of our broker-dealer subsidiaries located throughout the United States. 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.
The success of our Global Wealth Management segment is dependent upon the quality of our products, services, financial advisors, and support personnel, including our ability to attract, retain, and motivate a sufficient number of these associates. We face competition for qualified associates from major financial services companies, including other brokerage firms, insurance companies, banking institutions, and discount brokerage firms. Segment net revenues and operating income are used to evaluate and measure segment performance by management in assessing performance and deciding how to allocate resources.
The Institutional Group segment includes institutional sales and trading. It provides securities brokerage, trading, and research services to institutions with an emphasis on the sale of equity and fixed income products. This segment also includes the management of and participation in underwritings for both corporate and public finance (exclusive of sales credits generated through the Private Client Group, which are included in the Global Wealth Management segment), merger and acquisition, and financial advisory services.
The success of our Institutional Group segment is dependent upon the quality of our personnel, the quality and selection of our investment products and services, pricing (such as execution pricing and fee levels), and reputation. Segment net revenues and operating income are used to evaluate and measure segment performance by management in assessing performance and deciding how to allocate resources.
The Other segment includes interest income and expense from stock borrow activities, unallocated interest expense, interest income and gains and losses from investments held, amortization of stock-based awards, and all unallocated overhead cost associated with the execution of orders; processing of securities transactions; custody of client securities; receipt, identification, and delivery of funds and securities; compliance with regulatory and legal requirements; internal financial accounting and controls; and general administration and acquisition charges.
We evaluate the performance of our segments and allocate resources to them based on various factors, including prospects for growth, return on investment, and return on revenues.
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Results of Operations – Global Wealth Management
Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
The following table presents consolidated financial information for the Global Wealth Management segment for the periods indicated (in thousands, except percentages):
Three Months Ended June 30, As a Percentage of Net Revenues For the Three Months Ended June 30,
2026 2025 % Change 2026 2025
Revenues:
Commissions $ 147,157 $ 128,203 14.8 15.4 % 15.2 %
Principal transactions 60,240 54,463 10.6 6.3 6.4
Transactional revenues 207,397 182,666 13.5 21.7 21.6
Asset management 456,596 403,574 13.1 47.7 47.7
Investment banking 8,693 6,224 39.7 0.9 0.7
Interest 453,002 456,415 (0.7 ) 47.4 54.0
Other income 9,246 (981 ) n/m 1.0 (0.1 )
Total revenues 1,134,934 1,047,898 8.3 118.7 123.9
Interest expense 178,400 202,267 (11.8 ) 18.7 23.9
Net revenues 956,534 845,631 13.1 100.0 100.0
Non-interest expenses:
Compensation and benefits 460,582 420,240 9.6 48.2 49.7
Occupancy and equipment rental 49,080 46,099 6.5 5.1 5.5
Communication and office supplies 16,076 15,961 0.7 1.7 1.9
Commissions and floor brokerage 7,895 7,281 8.4 0.8 0.9
Provision for credit losses 12,538 8,328 50.6 1.3 1.0
Other operating expenses 48,516 41,666 16.4 5.1 4.8
Total non-interest expenses 594,687 539,575 10.2 62.2 63.8
Income before income taxes $ 361,847 $ 306,056 18.2 37.8 % 36.2 %
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Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
The following table presents consolidated financial information for the Global Wealth Management segment for the periods indicated (in thousands, except percentages):
Six Months Ended June 30, As a Percentage of Net Revenues For the Six Months Ended June 30,
2026 2025 % Change 2026 2025
Revenues:
Commissions $ 287,221 $ 254,029 13.1 15.2 % 15.0 %
Principal transactions 122,834 115,032 6.8 6.5 6.8
Transactional revenues 410,055 369,061 11.1 21.7 21.8
Asset management 916,022 813,080 12.7 48.5 47.9
Investment banking 14,765 12,132 21.7 0.8 0.7
Interest 882,232 907,930 (2.8 ) 46.7 53.5
Other income 8,845 2,235 295.7 0.5 0.2
Total revenues 2,231,919 2,104,438 6.1 118.2 124.1
Interest expense 343,262 408,248 (15.9 ) 18.2 24.1
Net revenues 1,888,657 1,696,190 11.3 100.0 100.0
Non-interest expenses:
Compensation and benefits 933,042 842,533 10.7 49.4 49.7
Occupancy and equipment rental 96,900 90,622 6.9 5.1 5.3
Communication and office supplies 34,322 32,334 6.1 1.8 1.9
Commissions and floor brokerage 15,271 14,481 5.5 0.8 0.9
Provision for credit losses 19,073 20,348 (6.3 ) 1.0 1.2
Other operating expenses 97,487 263,411 (63.0 ) 5.2 15.5
Total non-interest expenses 1,196,095 1,263,729 (5.4 ) 63.3 74.5
Income before income taxes $ 692,562 $ 432,461 60.1 36.7 % 25.5 %
NET REVENUES
For the three months ended June 30, 2026, Global Wealth Management net revenues increased 13.1% to a record $956.5 million from $845.6 million for the comparable period in 2025. For the six months ended June 30, 2026, Global Wealth Management net revenues increased 11.3% to a record $1.9 billion from $1.7 billion for the comparable period in 2025. The increase in net revenues over the comparable periods in 2025 is primarily attributable to higher asset management revenues, transactional revenues, net interest income, and investment banking revenues.
Commissions – For the three months ended June 30, 2026, commission revenues increased 14.8% to $147.2 million from $128.2 million in the comparable period in 2025. For the six months ended June 30, 2026, commission revenues increased 13.1% to $287.2 million from $254.0 million in the comparable period in 2025. The increase is primarily attributable to higher volumes due to increased market volatility over the comparable periods in 2025.
Principal transactions – For the three months ended June 30, 2026, principal transactions revenues increased 10.6% to $60.2 million from $54.5 million in the comparable period in 2025. For the six months ended June 30, 2026, principal transactions revenues increased 6.8% to $122.8 million from $115.0 million in the comparable period in 2025. The increase is primarily attributable to an increase in client activity and higher realized trading gains over the comparable periods in 2025.
Asset management – For the three months ended June 30, 2026, asset management revenues increased 13.1% to $456.6 million from $403.6 million in the comparable period in 2025. For the six months ended June 30, 2026, asset management revenues increased 12.7% to $916.0 million from $813.1 million in the comparable period in 2025. The increase is primarily attributable to higher asset values and net new asset growth. Fee-based account revenues are primarily billed based on asset values at the end of the prior quarter.
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Client asset metrics as of the periods indicated (in thousands, except for number of accounts):
June 30, 2026 June 30, 2025 % Change March 31, 2026 % Change
Client assets (1) $ 580,077,000 $ 516,532,000 12.3 $ 538,717,000 7.7
Fee-based client assets (1) $ 239,777,000 $ 206,319,000 16.2 $ 219,863,000 9.1
Number of client accounts 1,264,000 1,276,000 (0.9 ) 1,263,000 0.1
Number of fee-based client accounts 382,000 370,000 3.2 379,000 0.8
(1) Total client assets as of June 30, 2025, include $9.7 billion, and fee-based client assets include $4.6 billion, of client assets from the SIA business that was sold on February 2, 2026.
The increase in the value of our client assets and fee-based assets was primarily attributable to improved market conditions and asset growth resulting from our recruiting efforts, partially offset by the sale of the SIA business during the first quarter of 2026.
Investment banking – Investment banking, which represents sales credits for investment banking underwritings, increased 39.7% to $8.7 million for the three months ended June 30, 2026 from $6.2 million during the comparable period in 2025. For the six months ended June 30, 2026, investment banking revenues increased 21.7% to $14.8 million from $12.1 million during the comparable period in 2025. Please refer to “Investment banking” in the Institutional Group segment discussion for information on the changes in net revenues.
Interest revenue – For the three months ended June 30, 2026, interest revenue decreased 0.7% to $453.0 million from $456.4 million in the comparable period in 2025. For the six months ended June 30, 2026, interest revenue decreased 2.8% to $882.2 million from $907.9 million during the comparable period in 2025. The decrease is primarily attributable to lower interest rates, partially offset by higher interest-earning assets.
Other income – For the three months ended June 30, 2026, other income increased to $9.2 million from a loss of $1.0 million in the comparable period in 2025. The increase is primarily attributable to higher investment gains and an increase in loan origination fees. For the six months ended June 30, 2026, other income increased 295.7% to $8.8 million from $2.2 million during the comparable period in 2025. The increase is primarily attributable to lower investment losses and an increase in loan origination fees.
Interest expense – For the three months ended June 30, 2026, interest expense decreased 11.8% to $178.4 million from $202.3 million in the comparable period in 2025. For the six months ended June 30, 2026, interest expense decreased 15.9% to $343.3 million from $408.2 million during the comparable period in 2025. The decrease is primarily attributable to lower interest rates, partially offset by higher interest-bearing liabilities.
NON-INTEREST EXPENSES
For the three months ended June 30, 2026, Global Wealth Management non-interest expenses increased 10.2% to $594.7 million from $539.6 million for the comparable period in 2025. For the six months ended June 30, 2026, Global Wealth Management non-interest expenses decreased 5.4% to $1.2 billion from $1.3 billion for the comparable period in 2025.
Compensation and benefits – For the three months ended June 30, 2026, compensation and benefits expense increased 9.6% to $460.6 million from $420.2 million during the comparable period in 2025. For the six months ended June 30, 2026, compensation and benefits expense increased 10.7% to $933.0 million from $842.5 million during the comparable period in 2025. The increase is primarily attributable to increased variable compensation over the comparable periods in 2025.
Compensation and benefits expense as a percentage of net revenues was 48.2% and 49.4% for the three and six months ended June 30, 2026, respectively, compared to 49.7% and 49.7% for the comparable periods in 2025. The decrease is primarily attributable to revenue growth, partially offset by higher revenue-related compensation.
Occupancy and equipment rental – For the three months ended June 30, 2026, occupancy and equipment rental expense increased 6.5% to $49.1 million from $46.1 million during the comparable period in 2025. For the six months ended June 30, 2026, occupancy and equipment rental expense increased 6.9% to $96.9 million from $90.6 million during the comparable period in 2025. The increase is primarily attributable to higher occupancy costs, furniture and equipment expenses, and data processing expense over the comparable periods in 2025 associated with an increase in business activity.
Communications and office supplies – For the three months ended June 30, 2026, communications and office supplies expense increased 0.7% to $16.1 million from $16.0 million during the comparable period in 2025. The increase is primarily attributable to higher communication and quote expenses, partially offset by lower telecommunication expenses, postage and shipping, and office supplies expenses over the comparable period in 2025. For the six months ended June 30, 2026, communications and office supplies expense increased 6.1% to $34.3 million from $32.3 million during the comparable period in 2025. The increase is primarily attributable to higher communication and quote expenses, postage and shipping, and office supplies expenses with the continued growth of our business, partially offset by lower telecommunication expenses.
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Commissions and floor brokerage – For the three months ended June 30, 2026, commissions and floor brokerage expense increased 8.4% to $7.9 million from $7.3 million during the comparable period in 2025. For the six months ended June 30, 2026, commissions and floor brokerage expense increased 5.5% to $15.3 million from $14.5 million during the comparable period in 2025. The increase is primarily attributable to higher clearing expenses, processing fees, and transaction fees over the comparable periods in 2025.
Provision for credit losses – For the three months ended June 30, 2026, provision for credit losses increased 50.6% to $12.5 million from $8.3 million during the comparable period in 2025. The increase is primarily attributable to overall loan growth in the retained portfolio and specific reserves on individual credits. For the six months ended June 30, 2026, provision for credit losses decreased 6.3% to $19.1 million from $20.3 million during the comparable period in 2025. The decrease is primarily attributable to modest improvement in macroeconomic conditions, partially offset by loan growth in the retained portfolio and specific reserves on individual credits.
Other operating expenses – For the three months ended June 30, 2026, other operating expenses increased 16.4% to $48.5 million from $41.7 million during the comparable period in 2025. The increase is primarily attributable to higher legal-related expenses, travel-related expenses, bank service charges, insurance expense, and subscription costs, partially offset by decreases in conference-related expenses, professional fees, and advertising.
For the six months ended June 30, 2026, other operating expenses decreased 63.0% to $97.5 million from $263.4 million during the comparable period in 2025. The decrease is primarily attributable to lower legal-related expenses, conference-related expenses, dues and assessments, professional fees, and advertising, partially offset by higher travel-related expenses, bank service charges, insurance expenses, subscription costs, and licensing costs. During the first quarter of 2025, we recorded $180.0 million related to provisions for legal-related matters.
INCOME BEFORE INCOME TAXES
For the three months ended June 30, 2026, income before income taxes increased 18.2% to $361.8 million from $306.1 million during the comparable period in 2025. For the six months ended June 30, 2026, income before income taxes increased 60.1% to $692.6 million from $432.5 million during the comparable period in 2025.
Profit margins (income before income taxes as a percent of net revenues) have increased to 37.8% and 36.7% for the three and six months ended June 30, 2026, respectively, from 36.2% and 25.5% during the comparable periods in 2025. The profit margin for the six months ended June 30, 2025 was negatively impacted by elevated reserves for legal matters in the first quarter of 2025.
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Results of Operations – Institutional Group
Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
The following table presents consolidated financial information for the Institutional Group segment for the periods indicated (in thousands, except percentages):
Three Months Ended June 30, As a Percentage of Net Revenues For the Three Months Ended June 30,
2026 2025 % Change 2026 2025
Revenues:
Commissions $ 74,305 $ 72,466 2.5 15.5 % 17.3 %
Principal transactions 79,851 118,140 (32.4 ) 16.6 28.1
Transactional revenues 154,156 190,606 (19.1 ) 32.1 45.4
Capital raising 165,898 99,931 66.0 34.5 23.8
Advisory 157,363 127,305 23.6 32.7 30.3
Investment banking 323,261 227,236 42.3 67.2 54.1
Interest 11,297 11,029 2.4 2.4 2.6
Other income 4,037 4,323 (6.6 ) 0.8 1.1
Total revenues 492,751 433,194 13.7 102.5 103.2
Interest expense 12,057 13,415 (10.1 ) 2.5 3.2
Net revenues 480,694 419,779 14.5 100.0 100.0
Non-interest expenses:
Compensation and benefits 285,504 257,697 10.8 59.4 61.4
Occupancy and equipment rental 18,750 21,653 (13.4 ) 3.9 5.2
Communication and office supplies 24,434 25,971 (5.9 ) 5.1 6.2
Commissions and floor brokerage 7,143 9,865 (27.6 ) 1.5 2.4
Other operating expenses 52,686 43,553 21.0 10.9 10.3
Total non-interest expenses 388,517 358,739 8.3 80.8 85.5
Income before income taxes $ 92,177 $ 61,040 51.0 19.2 % 14.5 %
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Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
The following table presents consolidated financial information for the Institutional Group segment for the periods indicated (in thousands, except percentages):
Six Months Ended June 30, As a Percentage of Net Revenues For the Six Months Ended June 30,
2026 2025 % Change 2026 2025
Revenues:
Commissions $ 142,075 $ 140,310 1.3 14.6 % 17.4 %
Principal transactions 167,478 199,231 (15.9 ) 17.1 24.8
Transactional revenues 309,553 339,541 (8.8 ) 31.7 42.2
Capital raising 282,800 194,495 45.4 29.0 24.2
Advisory 375,801 264,775 41.9 38.5 32.9
Investment banking 658,601 459,270 43.4 67.5 57.1
Interest 21,748 20,081 8.3 2.2 2.5
Other income 9,491 11,885 (20.1 ) 1.0 1.4
Total revenues 999,393 830,777 20.3 102.4 103.2
Interest expense 23,441 26,069 (10.1 ) 2.4 3.2
Net revenues 975,952 804,708 21.3 100.0 100.0
Non-interest expenses:
Compensation and benefits 581,374 510,282 13.9 59.6 63.4
Occupancy and equipment rental 39,559 42,500 (6.9 ) 4.1 5.3
Communication and office supplies 50,974 52,905 (3.6 ) 5.2 6.6
Commissions and floor brokerage 14,809 19,471 (23.9 ) 1.5 2.4
Other operating expenses 99,149 91,079 8.9 10.1 11.3
Total non-interest expenses 785,865 716,237 9.7 80.5 89.0
Income before income taxes $ 190,087 $ 88,471 114.9 19.5 % 11.0 %
NET REVENUES
For the three months ended June 30, 2026, Institutional Group net revenues increased 14.5% to $480.7 million from $419.8 million for the comparable period in 2025. For the six months ended June 30, 2026, Institutional Group net revenues increased 21.3% to $976.0 million from $804.7 million during the comparable period in 2025. The increase in net revenues is primarily attributable to higher advisory revenues, capital-raising revenues, and commissions revenues, partially offset by lower principal transactions revenues over the comparable periods in 2025.
Transactional revenues – For the three months ended June 30, 2026, transactional revenues decreased 19.1% to $154.2 million from $190.6 million in the comparable period in 2025. For the six months ended June 30, 2026, transactional revenues decreased 8.8% to $309.6 million from $339.5 million in the comparable period in 2025.
For the three months ended June 30, 2026, fixed income transactional revenues decreased 26.4% to $95.0 million from $129.1 million in the comparable period in 2025. For the six months ended June 30, 2026, fixed income transactional revenues decreased 10.7% to $195.1 million from $218.5 million in the comparable period in 2025. The decrease was primarily attributable to lower realized trading gains in our aircraft business over the comparable periods in 2025. The three months ended June 30, 2025 benefited from a roughly $30 million gain in our aircraft business.
For the three months ended June 30, 2026, equity transactional revenues decreased 3.9% to $59.1 million from $61.5 million in the comparable period in 2025. For the six months ended June 30, 2026, equity transactional revenues decreased 5.5% to $114.5 million from $121.1 million during the comparable period in 2025. The decrease was primarily attributable to the restructuring of our European Equities business.
Investment banking – For the three months ended June 30, 2026, investment banking revenues increased 42.3% to $323.3 million from $227.2 million during the comparable period in 2025. For the six months ended June 30, 2026, investment banking revenues increased 43.4% to $658.6 million from $459.3 million during the comparable period in 2025.
For the three months ended June 30, 2026, capital-raising revenues increased 66.0% to $165.9 million from $99.9 million in the comparable period in 2025. For the six months ended June 30, 2026, capital-raising revenues increased 45.4% to $282.8 million from $194.5 million in the comparable period in 2025.
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For the three months ended June 30, 2026, equity capital-raising revenues increased 121.4% to $102.3 million from $46.2 million during the comparable period in 2025. For the six months ended June 30, 2026, equity capital-raising revenues increased 78.1% to $169.6 million from $95.2 million during the comparable period in 2025. The increase is primarily attributable to higher volumes and larger deal sizes over the comparable periods in 2025.
For the three months ended June 30, 2026, fixed income capital-raising revenues increased 18.4% to $63.6 million from $53.7 million during the comparable period in 2025. For the six months ended June 30, 2026, fixed income capital-raising revenues increased 14.0% to $113.2 million from $99.3 million during the comparable period in 2025. The increase is primarily attributable to higher bond issuances reflecting a more favorable financing environment over the comparable periods in 2025.
For the three months ended June 30, 2026, advisory revenues increased 23.6% to $157.4 million from $127.3 million in the comparable period in 2025. For the six months ended June 30, 2026, advisory revenues increased 41.9% to $375.8 million from $264.8 million in the comparable period in 2025. The increase is primarily attributable to higher levels of completed advisory transactions over the comparable periods in 2025.
Interest – For the three months ended June 30, 2026, interest increased 2.4% to $11.3 million from $11.0 million in the comparable period in 2025. For the six months ended June 30, 2026, interest increased 8.3% to $21.7 million from $20.1 million in the comparable period in 2025. The increase is primarily attributable to an increase in inventory levels.
Other income – For the three months ended June 30, 2026, other income decreased 6.6% to $4.0 million from $4.3 million in the comparable period in 2025. For the six months ended June 30, 2026, other income decreased 20.1% to $9.5 million from $11.9 million during the comparable period in 2025. The decrease is primarily attributable to reduced rental income generated from our aircraft engine leasing business due to the sale of engines.
Interest expense – For the three months ended June 30, 2026, interest expense decreased 10.1% to $12.1 million from $13.4 million in the comparable period in 2025. For the six months ended June 30, 2026, interest expense decreased 10.1% to $23.4 million from $26.1 million in the comparable period in 2025. The decrease is primarily attributable to lower interest rates over the comparable periods in 2025.
NON-INTEREST EXPENSES
For the three months ended June 30, 2026, Institutional Group non-interest expenses increased 8.3% to $388.5 million from $358.7 million for the comparable period in 2025. For the six months ended June 30, 2026, Institutional Group non-interest expenses increased 9.7% to $785.9 million from $716.2 million during the comparable period in 2025.
Compensation and benefits – For the three months ended June 30, 2026, compensation and benefits expense increased 10.8% to $285.5 million from $257.7 million during the comparable period in 2025. For the six months ended June 30, 2026, compensation and benefits expense increased 13.9% to $581.4 million from $510.3 million during the comparable period in 2025. The increase is driven by higher variable compensation expense as a result of an improving operating environment.
Compensation and benefits expense as a percentage of net revenues was 59.4% and 59.6% for the three and six months ended June 30, 2026, respectively, compared to 61.4% and 63.4% for the comparable periods in 2025. The decrease is primarily attributable to revenue growth, partially offset by higher revenue-related compensation.
Occupancy and equipment rental – For the three months ended June 30, 2026, occupancy and equipment rental expense decreased 13.4% to $18.8 million from $21.7 million during the comparable period in 2025. For the six months ended June 30, 2026, occupancy and equipment rental expense decreased 6.9% to $39.6 million from $42.5 million during the comparable period in 2025. The decrease is primarily attributable to lower occupancy costs and furniture and equipment costs, partially offset by higher data processing expenses.
Communications and office supplies – For the three months ended June 30, 2026, communications and office supplies expense decreased 5.9% to $24.4 million from $26.0 million during the comparable period in 2025. The decrease is primarily attributable to lower communication and quote equipment expenses, telecommunication expenses, and office supplies expenses over the comparable period in 2025. For the six months ended June 30, 2026, communications and office supplies expense decreased 3.6% to $51.0 million from $52.9 million during the comparable period in 2025. The decrease is primarily attributable to lower communication and quote equipment expenses and telecommunication expenses, partially offset by higher office supplies expenses over the comparable period in 2025.
Commissions and floor brokerage – For the three months ended June 30, 2026, commissions and floor brokerage expense decreased 27.6% to $7.1 million from $9.9 million during the comparable period in 2025. For the six months ended June 30, 2026, commissions and floor brokerage expense decreased 23.9% to $14.8 million from $19.5 million during the comparable period in 2025. The decrease is primarily attributable to lower clearing expenses, processing expenses, ECN trading costs, and transaction fees over the comparable periods in 2025.
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Other operating expenses – For the three months ended June 30, 2026, other operating expenses increased 21.0% to $52.7 million from $43.6 million during the comparable period in 2025. The increase is primarily attributable to higher investment banking expenses, litigation-related expenses, travel-related expenses, and subscription costs, partially offset by lower professional fees and licensing costs.
For the six months ended June 30, 2026, other operating expenses increased 8.9% to $99.1 million from $91.1 million during the comparable period in 2025. The increase is primarily attributable to higher investment banking expenses, travel-related expenses, litigation-related expenses, professional fees, and subscription costs, partially offset by lower licensing costs and conference-related expenses.
INCOME BEFORE INCOME TAXES
For the three months ended June 30, 2026, income before income taxes increased 51.0% to $92.2 million from $61.0 million during the comparable period in 2025. For the six months ended June 30, 2026, income before income taxes increased 114.9% to $190.1 million from $88.5 million during the comparable period in 2025.
Profit margins (income before income taxes as a percentage of net revenues) have increased to 19.2% and 19.5% for the three and six months ended June 30, 2026, respectively, from 14.5% and 11.0% during the comparable periods in 2025. Profit margins were positively impacted by revenue growth.
Results of Operations – Other Segment
Three and Six Months Ended June 30, 2026 Compared with Three and Six Months Ended June 30, 2025
The Other segment includes costs associated with investments made in the Company’s core business and expenses related to the Company’s acquisition strategy. The following table presents financial information for our Other segment for the periods presented broken out between infrastructure growth-related expenses and acquisition-related expenses (in thousands, except percentages):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
Net revenues $ 13,576 $ 18,876 (28.1 %) $ 64,356 $ 38,857 65.6 %
Non-interest expenses:
Compensation and benefits:
Core business-related 82,298 67,011 22.8 142,843 120,297 18.7
Acquisition-related 4,634 29,988 (84.5 ) 24,093 34,044 (29.2 )
Total compensation and benefits 86,932 96,999 (10.4 ) 166,936 154,341 8.2
Other operating expenses:
Core business-related 72,309 57,815 25.1 134,452 102,307 31.4
Acquisition-related 8,921 17,338 (48.5 ) 20,107 25,957 (22.5 )
Total other operating expenses 81,230 75,153 8.1 154,559 128,264 20.5
Total non-interest expenses 168,162 172,152 (2.3 ) 321,495 282,605 13.8
Loss before income taxes $ (154,586 ) $ (153,276 ) 0.9 % $ (257,139 ) $ (243,748 ) 5.5 %
For the three months ended June 30, 2026, net revenues decreased 28.1% to $13.6 million from $18.9 million during the comparable period in 2025. The decrease is primarily attributable to higher interest expense over the comparable period in 2025. For the six months ended June 30, 2026, increased 65.6% to $64.4 million from $38.9 million during the comparable period in 2025. The increase is primarily attributable to the recognition of a gain on the sale of SIA during the first quarter of 2026.
For the three months ended June 30, 2026, non-interest expenses decreased 2.3% to $168.2 million from $172.2 million during the comparable period in 2025. The decrease is primarily attributable to lower fixed compensation expenses due to workforce reductions in certain of our foreign subsidiaries during 2025. For the six months ended June 30, 2026, non-interest expenses increased 13.8% to $321.5 million from $282.6 from the comparable period in 2025. The increase is primarily attributable to an increase in variable compensation.
The expenses relating to the Company’s acquisition strategy are primarily attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s ongoing business.
For the three months ended June 30, 2026, non-interest expenses related to our acquisition strategy, included in the numbers presented in the table above, decreased 71.4% to $13.6 million from $47.3 million in 2025. For the six months ended June 30, 2026, non-interest expenses related to our acquisition strategy, included in the numbers presented in the table above, decreased 26.3% to $44.2 million from $60.0 million in 2025. The three and six months ended June 30, 2025 were negatively impacted by the recording of severance costs associated with workforce reductions in certain of our foreign subsidiaries.
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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 $44.9 billion, were up 8.8% from December 31, 2025. Our broker-dealer subsidiary’s gross assets and liabilities, including financial instruments owned, stock loan/borrow, receivables and payables from/to brokers, dealers, and clearing organizations and clients, fluctuate with our business levels and overall market conditions.
As of June 30, 2026, our liabilities were comprised primarily of deposits of $32.3 billion at Stifel Bancorp, lease liabilities of $838.1 million, accrued employee compensation of $711.8 million, payables to customers of $709.8 million at our broker-dealer subsidiaries, accounts payable and accrued expenses of $634.0 million, and senior notes, net of debt issuance costs, of $617.9 million. To meet our obligations to clients and operating needs, we had $13.9 billion of cash or assets readily convertible into cash at June 30, 2026.
Cash Flow
Cash and cash equivalents decreased $62.2 million to $2.2 billion at June 30, 2026, from $2.3 billion at December 31, 2025. Operating activities used cash of $266.5 million. Investing activities used cash of $2.9 billion primarily due to growth in our loan portfolio, investment securities purchases, and fixed asset purchases, partially offset by proceeds from principal paydowns and maturities of investment securities and the proceeds received from the sale of the SIA business. Financing activities provided cash of $3.1 billion primarily due to an increase in bank deposits, securities sold under agreement to repurchase, and securities loaned, partially offset by repurchases of our common stock, tax payments related to shares withheld for stock-based compensation, and dividends paid on our common and preferred stock.
Liquidity and Capital Resources
Liquidity and capital are essential to our business. The primary goal of our liquidity management activities is to ensure adequate funding and liquidity to conduct our business over a range of economic and market environments, including times of broader industry or market liquidity stress events. In times of market stress or uncertainty, we generally maintain higher levels of capital and liquidity, including increased cash levels at our bank subsidiaries, to ensure we have adequate funding to support our business and meet our clients’ needs. We seek to manage capital levels to support execution of our business strategy, provide financial strength to our subsidiaries, and maintain sustained access to the capital markets, while at the same time meeting our regulatory capital requirements, and conservative internal management targets.
Liquidity and capital resources are provided primarily through our business operations and financing activities. Financing activities could include bank borrowings, collateralized financing arrangements, new or enhanced deposit product offerings, or additional capital-raising activities under our “universal” shelf registration statement. We believe our existing assets, most of which are liquid in nature, together with funds generated from operations and available from committed and uncommitted financing facilities, provide adequate funds for continuing operations at current levels of activity in the short-term. We also believe that we will be able to continue to meet our long-term cash requirements due to our strong financial position and ability to access capital from financial markets.
The Company’s senior management establishes the liquidity and capital policies of our company. The Company’s senior management reviews business performance relative to these policies, monitors the availability of alternative sources of financing, and oversees the liquidity and interest rate sensitivity of our company’s asset and liability position.
Our assets, consisting mainly of cash or assets readily convertible into cash, are our principal source of liquidity. The liquid nature of these assets provides for flexibility in managing and financing the projected operating needs of the business. These assets are financed primarily by our equity capital, corporate debt, debentures to trusts, client credit balances, short-term bank loans, proceeds from securities lending, repurchase agreements, and other payables. We currently finance our client accounts and firm trading positions through ordinary course borrowings at floating interest rates from various banks on a demand basis, securities lending, and repurchase agreements, with company-owned and client securities pledged as collateral. Changes in securities market volumes, related client borrowing demands, underwriting activity, and levels of securities inventory affect the amount of our financing requirements. Interest rate increases may harm the value of our investment portfolio, if interest rates rise, our unrealized gains on fixed income securities may decrease and our unrealized losses may increase. We would recognize the accumulated change in estimated fair value of these fixed income securities in net income when we realize a gain or loss upon the sale of the security.
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. We monitor the liquidity of our bank subsidiaries daily to ensure their ability to meet customer deposit withdrawals, maintain reserve requirements, and support asset growth.
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As of June 30, 2026, we had $44.9 billion in assets, $13.9 billion of which consisted of cash or assets readily convertible into cash as follows (in thousands):
June 30, 2026 December 31, 2025
Cash and cash equivalents $ 2,191,628 $ 2,253,789
Receivables from brokers, dealers, and clearing organizations 864,846 571,663
Securities purchased under agreements to resell 798,907 564,162
Financial instruments owned at fair value 1,630,563 1,366,783
Available-for-sale securities at fair value 1,529,505 1,593,390
Held-to-maturity securities at amortized cost 6,881,353 6,549,054
Investments 34,403 35,488
Total cash and assets readily convertible to cash $ 13,931,205 $ 12,934,329
As of June 30, 2026 and December 31, 2025, the amount of collateral by asset class is as follows (in thousands):
June 30, 2026 December 31, 2025
Contractual Contingent Contractual Contingent
Cash and cash equivalents $ 245,565 $ — $ 128,630 $ —
Financial instruments owned at fair value 1,095,619 1,095,619 651,236 651,236
Investment portfolio (AFS & HTM) — 4,884,565 — 4,166,400
Total collateral $ 1,341,184 $ 5,980,184 $ 779,866 $ 4,817,636
Liquidity Available From Subsidiaries
Liquidity is principally available to our company from Stifel and Stifel Bancorp.
Stifel is required to maintain net capital equal to the greater of $1 million or two percent of aggregate debit items arising from client transactions. Covenants in the Company’s committed financing facilities require the excess net capital of Stifel, our principal broker-dealer subsidiary, to be above a defined amount. At June 30, 2026, 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 16 of the Notes to Consolidated Financial Statements for more information on the capital restrictions placed on our broker-dealer subsidiaries.
Stifel Bancorp may pay dividends to the parent company without prior approval by its regulator as long as the dividend does not exceed the sum of Stifel Bancorp’s current calendar year and the previous two calendar years’ retained net income and Stifel Bancorp maintains its targeted capital to risk-weighted assets ratios.
Although we have liquidity available to us from our other subsidiaries, the available amounts are not as significant as the amounts described above and, in certain instances, may be subject to regulatory requirements.
Capital Management
We have an ongoing authorization from the Board of Directors to repurchase our common stock in the open market or in negotiated transactions. At June 30, 2026, the maximum number of shares that may yet be purchased under this plan was 7.8 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.
Liquidity Risk Management
Our businesses are diverse, and our liquidity needs are determined by many factors, including market movements, collateral requirements, and client commitments, all of which can change dramatically in a difficult funding environment. During a liquidity crisis, credit-sensitive funding, including unsecured debt and some types of secured financing agreements, may be unavailable, and the terms (e.g., interest rates, collateral provisions, and tenor) or availability of other types of secured financing may change. We manage liquidity risk by diversifying our funding sources across products and among individual counterparties within those products.
As a holding company, whereby all of our operations are conducted through our subsidiaries, our cash flow and our ability to service our debt, including the notes, depend upon the earnings of our subsidiaries. Our subsidiaries are separate and distinct legal entities. Our subsidiaries have no obligation to pay any amounts due on the notes or to provide us with funds to pay our obligations, whether by dividends, distributions, loans, or other payments.
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Our liquidity requirements may change in the event we need to raise more funds than anticipated to increase inventory positions, support more rapid expansion, develop new or enhanced services and products, acquire technologies, respond to acquisition opportunities, expand our recruiting efforts, or respond to other unanticipated liquidity requirements. We primarily rely on financing activities and distributions from our subsidiaries for funds to implement our business and growth strategies and repurchase our shares. Net capital rules, restrictions under our borrowing arrangements of our subsidiaries, as well as the earnings, financial condition, and cash requirements of our subsidiaries, may each limit distributions to us from our subsidiaries.
The availability of outside financing, including access to the capital markets and bank lending, depends on a variety of factors, such as market conditions, the general availability of credit, the volume of trading activities, the overall availability of credit to the financial services sector, and our credit rating. Our cost and availability of funding may be adversely affected by illiquid credit markets and wider credit spreads. As a result of any future concerns about the stability of the markets generally and the strength of counterparties specifically, lenders may from time to time curtail, or even cease to provide, funding to borrowers.
Our liquidity management policies are designed to mitigate the potential risk that we may be unable to access adequate financing to service our financial obligations without material business impact. The principal elements of our liquidity management framework are: (a) daily monitoring of our liquidity needs at the holding company and significant subsidiary level, (b) stress testing the liquidity positions of Stifel and our bank subsidiaries, and (c) diversification of our funding sources.
Monitoring of liquidity – Senior management establishes our liquidity and capital policies. These policies include senior management’s review of short- and long-term cash flow forecasts, review of monthly capital expenditures, the monitoring of the availability of alternative sources of financing, and the daily monitoring of liquidity in our significant subsidiaries. Our decisions on the allocation of capital to our business units consider, among other factors, projected profitability and cash flow, risk, and impact on future liquidity needs. Our treasury department assists in evaluating, monitoring, and controlling the impact that our business activities have on our financial condition, liquidity, and capital structure as well as maintains our relationships with various lenders. The objectives of these policies are to support the successful execution of our business strategies while ensuring ongoing and sufficient liquidity.
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. Liquidity stress tests are utilized to ensure that current exposures are consistent with the Company’s established liquidity risk tolerance and, more specifically, to identify and quantify sources of potential liquidity strain. Further, the stress tests are utilized to analyze possible impacts on the Company’s cash flows, and liquidity position. The outflows are modeled over a 30-day liquidity stress timeframe and include the impact of idiosyncratic and macro-economic stress events.
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 June 30, 2026, the Company maintained sufficient liquidity to meet current and contingent funding obligations as modeled in its liquidity stress test model.
Liquidity stress testing (Stifel Bancorp) – Our bank subsidiaries perform three primary stress tests on their liquidity position. These stress tests are based on the following company-specific stresses: (1) the amount of deposit run-off that they could withstand over a one-month period of time based on their on-balance sheet liquidity and available credit, (2) the ability to fund operations if all available credit were to be drawn immediately, with no additional available credit, and (3) the ability to fund operations under a regulatory prompt corrective action. The goal of these stress tests is to determine their ability to fund continuing operations under significant pressures on both assets and liabilities.
Under all stress tests, our bank subsidiaries consider cash and highly liquid investments as available to meet liquidity needs. In their analysis, our bank subsidiaries consider agency mortgage-backed securities, corporate bonds, and commercial mortgage-backed securities as highly liquid. In addition to being able to be readily financed at modest haircut levels, our bank subsidiaries estimate that each of the individual securities within each of the asset classes described above could be sold into the market and converted into cash within three business days under normal market conditions, assuming that the entire portfolio of a given asset class was not simultaneously liquidated. At June 30, 2026, available cash and highly liquid investments comprised approximately 11% of Stifel Bancorp’s assets, which was well in excess of its internal target.
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In addition to these stress tests, management performs a daily liquidity review. The daily analysis provides management with all major fluctuations in liquidity. The analysis also tracks the proportion of deposits that Stifel Bancorp is sweeping from its affiliated broker-dealer, Stifel. On a monthly basis, liquidity key performance indicators and compliance with liquidity policy limits are reported to the Board of Directors. Our bank subsidiaries have not violated any internal liquidity policy limits.
Funding Sources
The Company pursues a strategy of diversification of secured and unsecured funding sources (by product and by investor) and attempts to ensure that the tenor of the Company’s liabilities equals or exceeds the expected holding period of the assets being financed. The Company funds its balance sheet through diverse sources. These sources may include the Company’s equity capital, long-term debt, repurchase agreements, securities lending, deposits, committed and uncommitted credit facilities, Federal Home Loan Bank advances, and federal funds agreements.
On September 14, 2023, we filed a “universal” shelf registration statement with the SEC pursuant to which we can issue debt, equity and other capital instruments if and when necessary or perceived by us to be opportune. Subject to certain conditions, this registration statement will be effective through September 14, 2026.
Cash and Cash Equivalents – We held $2.2 billion of cash and cash equivalents at June 30, 2026, compared to $2.3 billion at December 31, 2025. Cash and cash equivalents provide immediate sources of funds to meet our liquidity needs.
Available-for-Sale Securities – We held $1.5 billion in available-for-sale investment securities at June 30, 2026, compared to $1.6 billion at December 31, 2025. These investment securities provide increased liquidity and flexibility to support our company’s funding requirements.
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 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. Deposits provide a stable, low-cost source of funds that we utilize to fund asset growth and to diversify funding sources. We have continued to expand our deposit-gathering efforts through our existing private client network and through expansion. These channels offer a broad set of deposit products that include demand deposits, money market deposits, and certificates of deposit (“CDs”). As of June 30, 2026, we had $32.3 billion in deposits compared to $29.8 billion at December 31, 2025. Our core deposits are primarily comprised of money market deposit accounts, non-interest-bearing deposits, and CDs. Total estimated uninsured deposits were $4.8 billion and $4.9 billion at June 30, 2026 and December 31, 2025, respectively. The weighted-average interest rate on deposits was 2.11% and 2.58% at June 30, 2026 and December 31, 2025, respectively.
Deposits are primarily sourced 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. In addition to our historical sweep program, we offer the Stifel Smart Rate Program (“Smart Rate”), a high yield savings account that keeps our brokerage clients’ cash balances at Stifel affiliated banks through their securities accounts. Brokerage client deposits totaled $24.3 billion and $25.6 billion at June 30, 2026 and December 31, 2025, respectively, which includes $13.4 billion and $14.7 billion, respectively, of client cash in our Smart Rate program. The decrease in money market deposits was primarily driven by typical seasonality related to income tax payments. Please refer to the Net Interest Income table for additional information on our average balances and interest income and expense.
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. We also have an unsecured, committed bank line available.
Our uncommitted secured lines of credit at June 30, 2026, totaled $780.0 million with three banks and are dependent on having appropriate collateral, as determined by the bank agreements, to secure an advance under the line. The availability of our uncommitted lines is subject to approval by the individual banks each time an advance is requested and may be denied. There were no borrowings on our uncommitted secured lines during the six months ended June 30, 2026. There are no compensating balance requirements under these arrangements. Any borrowings on secured lines of credit are generally utilized to finance certain fixed income securities. At June 30, 2026, we had no outstanding balances on our uncommitted secured lines of credit.
We entered into an uncommitted, unsecured $100.0 million line of credit with UMB Bank during the first quarter of 2026. Our peak daily borrowing was $100.0 million during the six months ended June 30, 2026. At June 30, 2026, we had no outstanding balance on our uncommitted, unsecured line.
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The Federal Home Loan advances of $450.0 million as of June 30, 2026, are floating-rate advances. The weighted average interest rate on these advances during the six months ended June 30, 2026 was 3.35%. The advances are secured by Stifel Bancorp’s residential mortgage loan portfolio and investment portfolio. The interest rates reset on a daily basis. Stifel Bancorp has the option to prepay these advances without penalty on the interest reset date.
Unsecured borrowings – On February 4, 2026, the Company and Stifel (the “Borrowers”) entered into the Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) with respect to its existing unsecured Credit Agreement, dated September 27, 2023, (the “Credit Agreement”), among the Company and Stifel and a syndicate of lenders led by Bank of America, N.A., as administrative agent. Concurrently with, and conditional upon, the effectiveness of the Amended and Restated Credit Agreement, all of the commitments under the Borrowers’ existing Credit Agreement were terminated.
The Amended and Restated Credit Agreement has a maturity date of February 4, 2031, and provides for a committed unsecured revolving borrowing facility for maximum aggregate borrowings of up to $1.0 billion depending on the amount of outstanding borrowings of the Borrowers from time to time during the duration of the Amended and Restated Credit Agreement. 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. 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. 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.
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. 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. At June 30, 2026, we had no advances on the Credit Facility and were in compliance with all covenants and currently do not expect any covenant violations.
Federal Home Loan Bank Advances and other secured financing – Stifel Bancorp has borrowing capacity with the Federal Home Loan Bank of $7.5 billion at June 30, 2026 and $64.5 million in federal funds agreements for the purpose of purchasing short-term funds should additional liquidity be needed. At June 30, 2026, there were $450.0 million of outstanding Federal Home Loan Bank advances. Stifel Bancorp is eligible to participate in the Federal Reserve’s discount window program; however, Stifel Bancorp does not view 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 has borrowing capacity of $7.0 billion with the Federal Reserve’s discount window at June 30, 2026. Stifel Bancorp receives overnight funds from excess cash held in Stifel brokerage accounts, which are deposited into a money market account. These balances totaled $24.3 billion at June 30, 2026. At June 30, 2026, there was $25.4 billion in client money market and FDIC-insured product balances.
Public Offering of Senior Notes – On October 4, 2017, we completed the pricing of a registered underwritten public offering of $200.0 million in aggregate principal amount of 5.20% senior notes due October 2047. Interest on the senior notes is payable quarterly in arrears in January, April, July, and October. We may redeem some or all of the senior notes at any time at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued interest thereon to the redemption date. On October 27, 2017, we completed the sale of an additional $25.0 million aggregate principal amount of Notes pursuant to the over-allotment option. In October 2017, we received a BBB- rating on the notes.
On May 20, 2020, we sold in a registered underwritten public offering, $400.0 million in aggregate principal amount of 4.00% senior notes due May 2030. Interest on these senior notes is payable semi-annually in arrears in May and November. We may redeem the notes in whole or in part, at our option, at a redemption price equal to the greater of a) 100% of their principal amount or b) discounted present value at Treasury rate plus 50 basis points prior to February 15, 2030, and on or after February 15, 2030, at 100% of their principal amount, and accrued and unpaid interest, if any, to the date of redemption. In May 2020, we received a BBB- rating on the notes.
Public Offering of Preferred Stock – In July 2016, the Company completed an underwritten registered public offering of $150.0 million 6.25% Non-Cumulative Perpetual Preferred Stock, Series A. On August 20, 2021, the Company redeemed all of the outstanding Series A Preferred Stock.
In February 2019, the Company completed an underwritten registered public offering of $150.0 million 6.25% Non-Cumulative Perpetual Preferred Stock, Series B. In March 2019, we completed a public offering of an additional $10.0 million of Series B Preferred, pursuant to the over-allotment option.
In May 2020, the Company completed an underwritten registered public offering of $225.0 million 6.125% Non-Cumulative Perpetual Preferred Stock, Series C, which included the sale of $25.0 million of Series C Preferred pursuant to an over-allotment option.
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On July 22, 2021, the Company completed an underwritten registered public offering of $300.0 million of 4.50% Non-Cumulative Perpetual Preferred Stock, Series D. When, as, and if declared by the board of directors of the Company, dividends will be payable at an annual rate of 4.50%, payable quarterly, in arrears. The Company may redeem the Series D preferred stock at its option, subject to regulatory approval, on or after August 15, 2026.
Credit Rating
We believe our current rating depends upon a number of factors, including industry dynamics, operating and economic environment, operating results, operating margins, earnings trends and volatility, balance sheet composition, liquidity and liquidity management, our capital structure, our overall risk management, business diversification, and our market share and competitive position in the markets in which we operate. Deteriorations in any of these factors could impact our credit rating. A reduction in our credit rating could adversely affect our liquidity and competitive position, increase our incremental borrowing costs, limit our access to the capital markets, or trigger our obligations under certain financial agreements. As such, we may not be able to successfully obtain additional outside financing to fund our operations on favorable terms, or at all.
We believe our existing assets, a significant portion of which are liquid in nature, together with the funds from operations, available informal short-term credit arrangements, and our ability to raise additional capital will provide sufficient resources to meet our present and anticipated financing needs.
Use of Capital Resources
We have paid $24.2 million in the form of upfront notes to financial advisors for transition pay during the six months ended June 30, 2026. As we continue to take advantage of the opportunities created by market displacement and as competition for skilled professionals in the industry increases, we may decide to devote more significant resources to attracting and retaining qualified personnel.
We utilize transition pay, principally in the form of upfront demand notes, to aid financial advisors, who have elected to join our firm, to supplement their lost compensation while transitioning their customers’ accounts to the Stifel platform. The initial value of the notes is determined primarily by the financial advisors’ trailing production and assets under management. These notes are generally forgiven over a five- to ten-year period based on production. The future estimated amortization expense of the upfront notes, assuming current-year production levels and static growth for the remaining six months in 2026, and the years ended December 31, 2027, 2028, 2029, 2030, and thereafter are $83.3 million, $128.8 million, $116.1 million, $89.1 million, $70.3 million, and $185.0 million, respectively. These estimates could change if we continue to grow our business through expansion or experience increased production levels.
We provide compensation to existing employees in the form of cash awards which are subject to ratable vesting terms with service requirements. We amortize these awards to compensation expense over the relevant service period of five years. At June 30, 2026, there was $37.7 million of cash awards, net, which is included in loans and advances to financial advisors and other employees, net in the consolidated statement of financial condition, which is expected to be amortized over a weighted-average period of 4.0 years.
We maintain an incentive stock plan and a wealth accumulation plan that provides for the granting of stock options, stock appreciation rights, restricted stock, performance awards, stock units, and debentures (collectively, “deferred awards”) to our associates. Historically, we have granted stock units to our associates as part of our retention program. A restricted stock unit or restricted stock award represents the right to receive a share of the Company’s common stock at a designated time in the future without cash payment by the associate and is issued in lieu of cash incentive, principally for deferred compensation and employee retention plans. 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.
At June 30, 2026, the total number of restricted stock units, PRSUs, and restricted stock awards outstanding was 16.1 million, of which 14.8 million were unvested. At June 30, 2026, there was unrecognized compensation cost for deferred awards of approximately $908.3 million, which is expected to be recognized over a weighted-average period of 2.8 years.
The future estimated compensation expense of the deferred awards, assuming current year forfeiture levels and static growth for the remaining six months in 2026, and the years ended December 31, 2027, 2028, 2029, 2030, and thereafter are $148.1 million, $235.0 million, $183.8 million, $145.3 million, $98.1 million, and $98.0 million, respectively. These estimates could change if our forfeitures change from historical levels.
The Company’s Board of Directors declared a cash dividend on shares of the Company’s common stock of $0.34 per share, payable June 15, 2026, to shareholders of record at the close of business on June 1, 2026.
The Company’s Board of Directors declared a quarterly cash dividend on the outstanding shares of the Company’s preferred stock payable on June 15, 2026, to shareholders of record on June 1, 2026.
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Net Capital Requirements – We operate in a highly regulated environment and are subject to capital requirements, which may limit distributions to our company from our subsidiaries. Distributions from our broker-dealer subsidiaries are subject to net capital rules. These subsidiaries have historically operated in excess of minimum net capital requirements. However, if distributions were to be limited in the future due to the failure of our subsidiaries to comply with the net capital rules or a change in the net capital rules, it could have a material and adverse effect to our company by limiting our operations that require intensive use of capital, such as underwriting or trading activities, or limit our ability to implement our business and growth strategies, pay interest on and repay the principal of our debt, and/or repurchase our common stock. Our non-broker-dealer subsidiaries, Stifel Bank & Trust, Stifel Bank, Stifel Trust Company, 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 Canadian subsidiary, SNC, is subject to the regulatory supervision and requirements of CIRO.
At June 30, 2026, Stifel had net capital of $776.5 million, which was 37.7% of aggregate debit items and $735.3 million in excess of its minimum required net capital. At June 30, 2026, all of our other broker-dealer subsidiaries’ net capital exceeded the minimum net capital required under the SEC rule. At June 30, 2026, SNEL’s capital and reserves were in excess of the financial resources requirement under the rules of the FCA. At June 30, 2026, our banking subsidiaries were considered well capitalized under the regulatory framework for prompt corrective action. At June 30, 2026, SNC’s net capital and reserves were in excess of the financial resources requirement under the rules of the CIRO. See Note 16 of the Notes to Consolidated Financial Statements for details of our regulatory capital requirements.
Critical Accounting Policies and Estimates
In preparing our consolidated financial statements in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the SEC, we make assumptions, judgments, and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses, and related disclosures of contingent assets and liabilities. We base our assumptions, judgments, and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. On a regular basis, we evaluate our assumptions, judgments, and estimates. We also discuss our critical accounting policies and estimates with the Audit Committee of the Board of Directors.
We believe that the assumptions, judgments, and estimates involved in the accounting policies described below have the greatest potential impact on our consolidated financial statements. These areas are key components of our results of operations and are based on complex rules that require us to make assumptions, judgments, and estimates, so we consider these to be our critical accounting policies. Historically, our assumptions, judgments, and estimates relative to our critical accounting policies and estimates have not differed materially from actual results. There have not been any material updates to our critical accounting policies and estimates.
The following are our critical accounting policies and estimates:
•Valuation of Financial Instruments
•Contingencies
•Allowance for Credit Losses
•Income Taxes
•Goodwill and Intangible Assets
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” and Note 2 of the Notes to Consolidated Financial Statements in the 2025 Form 10-K for additional information on our critical accounting policies and estimates.
Recently Issued Accounting Guidance
Income Statement Expenses
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses. The guidance primarily will require enhanced disclosures about certain types of expenses. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026 (January 1, 2027, for our company), and interim periods within fiscal years beginning after December 15, 2027, and may be applied either on a prospective or retrospective basis. We are currently evaluating the impact of the accounting update on our disclosures.
Internal-Use Software
In September 2025, the FASB issued ASU No. 2025-06 (“ASU 2025-06”), Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The guidance primarily removes references to software development project stages to better align with current software development methods. Under ASU 2025-06, an entity will begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable that the project will be completed and the software will be used for its intended purpose. The accounting update is effective for annual periods beginning after December 15, 2027 (January 1, 2028, for our company), including interim periods within those fiscal years with early adoption permitted. The accounting update can be adopted either prospectively, retrospectively, or utilizing a modified transition approach. We are currently evaluating the impact of the accounting update on our consolidated financial statements.
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Credit Losses Purchased Loans
In November 2025, the FASB issued ASU 2025-08, Financial Instruments – Credit Losses (Topic 326) – Purchased Loans, which expands the population of purchased financial assets subject to the gross-up approach in Topic 326. As a result of this update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” as defined in the accounting update will follow the gross-up approach at acquisition, and the initial allowance for credit losses at acquisition is added to the amortized cost basis of the loans. The accounting update is effective for annual reporting periods beginning after December 15, 2026 (January 1, 2027, for our company), including interim periods within those fiscal years with early adoption permitted. The accounting update will be applied using a prospective transition approach. We are currently evaluating the impact of the accounting update on our consolidated financial statements.
Interim Reporting
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies interim disclosure requirements and provides additional required interim disclosure guidance. The accounting update is effective for annual reporting periods beginning after December 15, 2027 (January 1, 2028, for our company) with early adoption permitted and can be applied either prospectively or retrospectively. We are currently evaluating the impact of the accounting update on our consolidated financial statements.
Off-Balance Sheet Arrangements
Information concerning our off-balance sheet arrangements is included in Note 21 of the Notes to Consolidated Financial Statements. Such information is hereby incorporated by reference.
Contractual Obligations
Our contractual obligations have not materially changed from those reported in our Annual Report on Form 10-K for the year ended December 31, 2025.