Stifel Financial Corp. August 2016 Disclaimer Forward-Looking - PowerPoint PPT Presentation

Stifel Financial Corp. August 2016

Disclaimer Forward-Looking Statements This presentation may contain “ forward-looking statements ” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (collectively, “ SF ” or the “ Company ” ). These statements can be identified by the use of the words “ may, ” “ will, ” “ should, ” “ could, ” “ would, ” “ plan, ” “ potential, ” “ estimate, ” “ project, ” “ believe, ” “ intend, ” “ anticipate, ” “ expect, ” and similar expressions. In particular, these statements may refer to our goals, intentions, and expectations, our business plans and growth strategies, our ability to integrate and manage our acquired businesses, estimates of our risks and future costs and benefits, and forecasted demographic and economic trends relating to our industry. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We will not update these forward-looking statements, even though our situation may change in the future, unless we are obligated to do so under federal securities laws. Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in the Company ’ s annual and quarterly reports and from time to time in other reports filed by the Company with the Securities and Exchange Commission and include, among other things, changes in general economic and business conditions, actions of competitors, regulatory and legal actions, changes in legislation, and technology changes. Use of Non-GAAP Financial Measures The Company utilized non-GAAP calculations of presented net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share as an additional measure to aid in understanding and analyzing the Company ’ s financial results for the three and six months ended June 30, 2016. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company ’ s operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company ’ s results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors' overall understanding of the Company ’ s financial performance. 2

Our Strategy

Strategic Vision To build a premier wealth management and investment banking firm Global Wealth Management Institutional Private Asset Bank Equities Fixed Investment Research Client Management Banking Sales + Income Trading Sales + Trading 2,298 financial $26B in total $9.4B in assets Experienced Comprehensive Over 350 Largest advisors in assets funded by sales force with platform professionals research over 360 managed client deposits extensive including with extensive platform with branches with through distribution research, experience approximately more than various capabilities strategy and across all 1,300 U.S. and $200B in client strategies DCM teams products and 290 European assets industry stocks covered verticals 4

A History of Growth 2015 2016 Barclays Wealth & Eaton Partners Investment Management, ISM Capital Sterne Agee, Sidoti Joint Venture, 2014 Leumi Partners De La Rosa, Collaboration Agreement Oriel Securities, 1919 Investment Counsel, Merchant Capital 2013 Acacia Bank & 2013 Ziegler Lotsoff Knight Capital Group’s Fixed 2013 Income Division Keefe, Bruyette & Woods 2012 $2,500 Miller $2,332 Buckfire 2011 $2,208 Stone & Youngberg 2010 $1,973 Thomas Weisel 2009 Partners Net Revenues ($MM) $1,594 56 UBS Private Client Branches $1,393 $1,373 2008 Butler Wick $1,091 2007 $870.0 Ryan Beck $763.0 Acquisition Stifel Bank & Trust $452 2005 Legg Mason’s $247 $264 $217 $188 Capital Markets Division 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* * 2016 Net Revenue annualized based on 1H16 results and adjustment for 2H16 for impact of the sale of legacy Sterne Agee business 5

Driving Shareholder Value Through Deal Integration & Balance Sheet Growth

Core & GAAP EPS to Converge as Deal Charges Realized CORE & GAAP EPS 2012 2013 2014 2015 2016 2017 Core $0.63 $0.58 $0.60 $0.53 $0.79 $0.69 $0.68 $0.64 $0.75 $0.65 $0.71 $0.60 $0.51 $0.57 $0.69 $0.60 $0.68 $0.65 $0.74 $0.72 $0.84 GAAP $0.63 $0.21 $0.40 $1.00 $0.64 $0.63 $0.58 $0.52 $0.58 $0.56 $0.27 $0.22 $0.14 $0.36 $0.15 $0.30 $0.60 $0.61 $0.70 $0.68 $0.80 CORE to GAAP% 100% 36% 67% 189% 81% 91% 85% 81% 77% 86% 38% 37% 27% 63% 22% 51% 88% 94% 94% 94% 95% Share Price $31.97 $34.67 $35.67 $41.22 $47.92 $49.76 $47.35 $46.89 $51.02 $55.75 $57.74 $42.10 $42.36 $29.60 $31.45 Price Growth 0% 8% 12% 29% 50% 56% 48% 47% 60% 74% 81% 32% 32% -7% -2% Net Revenue $411 $439 $495 $480 $565 $548 $561 $525 $578 $564 $598 $592 $582 $620 $652 NR Growth 0% 7% 20% 17% 37% 33% 37% 28% 41% 37% 45% 44% 42% 51% 59% Diluted Shares 63 69 74 75 75 76 76 77 78 77 78 80 79 76 76 Share Growth 0% 9% 17% 19% 19% 20% 19% 21% 22% 22% 23% 26% 26% 20% 20% Footnotes: • EPS estimates for 3Q16 - 4Q17 as well as 2016 and 2017 based on consensus core EPS estimates as of 8/15/2016 • Analysis of convergence between Core and GAAP EPS based solely on current announced acquisitions. 7

Balance Sheet Growth Balance sheet growth has resumed with ability to further lever the existing capital base $20,000 $18,000 $15,386 $15,000 $14,214 $13,326 Total Assets in Millions Infrastructure Build $9,518 $10,000 $9,009 $6,966 $4,952 $4,213 $5,000 $3,167 $1,558 $- 2008 2009 2010 2011 2012 2013 2014 2015 Q1 16 Q2 16 Illustrative Ratio 2008 2009 2010 2011 2012 2013 2014 2015 Q1 16 Q2 16 Illustrative Tier 1 Leverage 32.3% 30.5% 25.6% 21.4% 17.7% 15.4% 16.5% 16.6% 11.6% 11.5% 9.5% Tier 1 Risk Based Capital 49.4% 40.5% 29.1% 27.4% 26.8% 26.7% 25.0% 26.3% 21.3% 20.9% 19.9% Risk Weighting Assets Density 64.9% 56.2% 67.3% 62.7% 57.0% 50.7% 58.2% 46.6% 49.0% 49.1% 50.0% 8

Bank Drove Significant Balance Sheet & Revenue Growth Bank growth has been balanced Impact of Bank Growth LTM on Consolidated Results between loans and investments: Loans: (mil.) 6/30/2015 6/30/2016 Total consolidated assets $10,140 $15,385 • Comprised of securities based loans, Investment securities $1,913 $4,587 C&I, and residential mortgages Loans $2,604 $4,422 • Focused lending to high net worth retail Total deposits $4,314 $7,881 clients Total equity $2,520 $2,491 • Effective duration of approximately 1 Annualized NII $135 $194 year as of 6/30/16 Tier 1 Risk Based Capital 29.4% 20.9% AFS & HTM Investments: Tier 1 Leverage 18.3% 11.5% 67% of the portfolio is fully guaranteed • NIM (Bank) 2.52% 2.36% by a US GSE or rated AAA as of 6/30/16 ROAA (Bank) 1.48% 1.25% ROAE (Bank) 19.1% 18.6% • Portfolio primarily GSE MBS, ABS, and Corporate bonds NPAs/Assets 0.14% 0.37% Effective duration of approximately 2 • years 9