STIFEL FINANCIAL CORP

Previous wording

On July 4, 2025, the United States enacted into law new tax legislation, the One Big Beautiful Bill Act (OBBBA). The OBBBA includes provisions modifying the corporate income tax code, including the immediate expensing of domestic research and development expenditures for tax purposes, 100% bonus depreciation for qualified assets, and reinstating favorable treatment for certain business tax items. The legislation is retroactive and effective for the 2025 tax year. The Company is still assessing the impact of the OBBBA on their results of operations, financial condition, and cash flows.

Current wording

On July 4, 2025, the United States enacted into law new tax legislation, the One Big Beautiful Bill Act (OBBBA). The OBBBA includes provisions modifying the corporate income tax code, including the immediate expensing of domestic research and development expenditures for tax purposes, 100% bonus depreciation for qualified assets, and reinstating favorable treatment for certain business tax items. The legislation is retroactive and effective for the 2025 tax year. The Company is still assessing the impact of the OBBBA on our results of operations, financial condition, and cash flows.

Previous wording

For the three months ended June 30, 2025, net revenues increased 5.4% to $1.3 billion from $1.2 billion during the comparable period in 2024. Net income available to common shareholders decreased 6.6% to $145.7 million, or $1.34 per diluted common share for the three months ended June 30, 2025, compared to $156.0 million, or $1.41 per diluted common share during the comparable period in 2024.

Current wording

For the three months ended September 30, 2025, net revenues increased 16.7% to $1.4 billion from $1.2 billion during the comparable period in 2024. Net income available to common shareholders increased 35.4% to $202.1 million, or $1.84 per diluted common share for the three months ended September 30, 2025, compared to $149.2 million, or $1.34 per diluted common share during the comparable period in 2024.

Previous wording

For the six months ended June 30, 2025, net revenues increased 6.7% to $2.5 billion compared to $2.4 billion during the comparable period in 2024. Net income available to common shareholders decreased 38.9% to $189.4 million, or $1.73 per diluted common share for the six months ended June 30, 2025, compared to $310.2 million, or $2.82 per diluted common share during the comparable period in 2024.

Current wording

For the nine months ended September 30, 2025, net revenues increased 10.1% to $4.0 billion compared to $3.6 billion during the comparable period in 2024. Net income available to common shareholders decreased 14.8% to $391.5 million, or $3.56 per diluted common share for the nine months ended September 30, 2025, compared to $459.4 million, or $4.16 per diluted common share during the comparable period in 2024.

Previous wording

Our revenue growth was primarily attributable to higher transactional revenues, asset management revenues, net interest income, and investment banking revenues.

Current wording

Our revenue growth was primarily attributable to higher investment banking revenues, transactional revenues, asset management revenues, and net interest income.

Previous wording

Advisory revenues decreased 3.1% to $127.3 million for the three months ended June 30, 2025 from $131.4 million in the comparable period in 2024. The decrease is primarily attributable to lower levels of completed advisory transactions during the quarter.

Current wording

Advisory revenues increased 31.0% to $179.3 million for the three months ended September 30, 2025 from $136.9 million in the comparable period in 2024. The increase is primarily attributable to higher levels of completed advisory transactions during the quarter.

Previous wording

For the three months ended June 30, 2025, asset management revenues increased 6.0% to $403.6 million from $380.8 million in the comparable period in 2024. For the six months ended June 30, 2025, asset management revenues increased 8.7% to $813.1 million from $748.2 million in the comparable period in 2024. Please refer to “Asset management” in the Global Wealth Management segment discussion for information on the changes in asset management revenues.

Current wording

For the three months ended September 30, 2025, asset management revenues increased 12.7% to $431.4 million from $382.6 million in the comparable period in 2024. For the nine months ended September 30, 2025, asset management revenues increased 10.1% to $1.2 billion from $1.1 billion in the comparable period in 2024. Please refer to “Asset management” in the Global Wealth Management segment discussion for information on the changes in asset management revenues.

Previous wording

Other income – Other income primarily includes investment gains and losses, rental income, and loan originations fees. For the three months ended June 30, 2025, other income decreased 77.2% to $3.7 million from $16.2 million during the comparable period in 2024. For the six months ended June 30, 2025, other income decreased 32.5% to $14.3 million from $21.1 million during the comparable period in 2024. The decrease is primarily attributable to reduced rental income generated from our aircraft engine leasing business due to the sale of engines and lower investment gains, partially offset by an increase in loan origination fees from the comparable periods in 2024.

Current wording

Other income – Other income primarily includes investment gains and losses, rental income, and loan originations fees. For the three months ended September 30, 2025, other income decreased 23.9% to $14.2 million from $18.7 million during the comparable period in 2024. The decrease is primarily attributable to reduced rental income generated from our aircraft engine leasing business due to the sale of engines and lower loan origination fees, partially offset by increases in investment gains from the comparable period in 2024.

Previous wording

Please refer to the Distribution of Assets, Liabilities, and Shareholders’ Equity; Interest Rates and Interest Differential table included in “Results of Operations – Global Wealth Management” for additional information on Stifel Bancorp’s average balances and interest income and expense.

Current wording

Please refer to the Net Interest Income table included in “Results of Operations – Global Wealth Management” for additional information on Stifel Bancorp’s average balances and interest income and expense.

Previous wording

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, 2025, net interest income increased 7.7% to $270.3 million from $250.8 million during the comparable period in 2024. For the six months ended June 30, 2025, net interest income increased 5.8% to $532.3 million from $503.0 million during the comparable period in 2024.

Current wording

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 September 30, 2025, net interest income increased 6.4% to $276.3 million from $259.6 million during the comparable period in 2024. For the nine months ended September 30, 2025, net interest income increased 6.0% to $808.7 million from $762.6 million during the comparable period in 2024.

Previous wording

For the three months ended June 30, 2025, interest revenue decreased 4.2% to $477.1 million from $498.2 million in the comparable period in 2024, 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 $31.0 billion during the three months ended June 30, 2025 compared to $29.2 billion during the comparable period in 2024 at average interest rates of 5.66% and 6.22%, respectively.

Current wording

For the three months ended September 30, 2025, interest revenue decreased 5.7% to $481.5 million from $510.8 million in the comparable period in 2024, 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 $31.0 billion during the three months ended September 30, 2025 compared to $30.0 billion during the comparable period in 2024 at average interest rates of 5.72% and 6.26%, respectively.

Previous wording

For the six months ended June 30, 2025, interest revenue decreased 5.2% to $952.7 million from $1.0 billion in the comparable period in 2024, 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 $31.1 billion during the six months ended June 30, 2025 compared to $29.7 billion during the comparable period in 2024 at average interest rates of 5.62% and 6.19%, respectively.

Current wording

For the nine months ended September 30, 2025, interest revenue decreased 5.4% to $1.4 billion from $1.5 billion in the comparable period in 2024, 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 $31.1 billion during the nine months ended September 30, 2025 compared to $29.8 billion during the comparable period in 2024 at average interest rates of 5.65% and 6.22%, respectively.

Previous wording

For the three months ended June 30, 2025, interest expense decreased 16.4% to $206.8 million from $247.3 million during the comparable period in 2024. 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 $28.6 billion during the three months ended June 30, 2025 compared to $26.8 billion during the comparable period in 2024 at average interest rates of 2.65% and 3.31%, respectively.

Current wording

For the three months ended September 30, 2025, interest expense decreased 18.3% to $205.2 million from $251.2 million during the comparable period in 2024. 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 $28.6 billion during the three months ended September 30, 2025 compared to $27.6 billion during the comparable period in 2024 at average interest rates of 2.66% and 3.35%, respectively.

Previous wording

For the three months ended June 30, 2025, compensation and benefits expense increased 7.2% to $774.9 million from $722.7 million during the comparable period in 2024. For the six months ended June 30, 2025, compensation and benefits expense increased 7.5% to $1.5 billion from $1.4 billion during the comparable period in 2024. The increase in compensation and benefits expenses is primarily attributable to higher compensable revenues over the comparable periods in 2024.

Current wording

For the three months ended September 30, 2025, compensation and benefits expense increased 17.0% to $839.8 million from $718.1 million during the comparable period in 2024. For the nine months ended September 30, 2025, compensation and benefits expense increased 10.7% to $2.3 billion from $2.1 billion during the comparable period in 2024. The increase in compensation and benefits expenses is primarily attributable to higher compensable revenues over the comparable periods in 2024.

Previous wording

Occupancy and equipment rental – For the three months ended June 30, 2025, occupancy and equipment rental expense increased 6.5% to $95.7 million from $89.9 million during the comparable period in 2024. For the six months ended June 30, 2025, occupancy and equipment rental expense increased 4.4% to $186.4 million from $178.6 million during the comparable period in 2024. The increase is primarily attributable to higher data processing and occupancy costs associated with an increase in business activity over the comparable periods in 2024.

Current wording

Occupancy and equipment rental – For the three months ended September 30, 2025, occupancy and equipment rental expense increased 6.7% to $95.6 million from $89.6 million during the comparable period in 2024. For the nine months ended September 30, 2025, occupancy and equipment rental expense increased 5.2% to $282.0 million from $268.2 million during the comparable period in 2024. The increase is primarily attributable to higher data processing and occupancy costs associated with an increase in business activity over the comparable periods in 2024.

Previous wording

Communications and office supplies – Communications expense includes costs for telecommunication and data communication, primarily for obtaining third-party market data information. For the three months ended June 30, 2025, communications and office supplies expense decreased 0.7% to $47.8 million from $48.2 million during the comparable period in 2024. For the six months ended June 30, 2025, communications and office supplies expense increased 1.9% to $97.4 million from $95.5 million during the comparable period in 2024. The increase is primarily attributable to higher communication and quote expenses associated with the continued growth of our business.

Current wording

Communications and office supplies – Communications expense includes costs for telecommunication and data communication, primarily for obtaining third-party market data information. For the three months ended September 30, 2025, communications and office supplies expense of $48.9 million remained consistent with the comparable period in 2024. For the nine months ended September 30, 2025, communications and office supplies expense increased 1.3% to $146.3 million from $144.4 million during the comparable period in 2024. The increase is primarily attributable to higher communication and quote equipment expenses and postage and shipping expenses associated with the continued growth of our business, partially offset by lower internet costs.

Previous wording

Commissions and floor brokerage – For the three months ended June 30, 2025, commissions and floor brokerage expense increased 19.2% to $17.1 million from $14.4 million during the comparable period in 2024. For the six months ended June 30, 2025, commissions and floor brokerage expense increased 12.6% to $34.0 million from $30.2 million during the comparable period in 2024. The increase is primarily attributable to higher electronic communication network (“ECN”) trading costs, processing expenses, and trading and clearing costs.

Current wording

Commissions and floor brokerage – For the three months ended September 30, 2025, commissions and floor brokerage expense decreased 2.7% to $15.8 million from $16.2 million during the comparable period in 2024. The decrease is primarily attributable to lower transaction fees, trading and clearing costs, and electronic communication network (“ECN”) trading costs, partially offset by higher processing expenses. For the nine months ended September 30, 2025, commissions and floor brokerage expense increased 7.3% to $49.8 million from $46.4 million during the comparable period in 2024. The increase is primarily attributable to higher ECN trading costs, processing expenses, and trading and clearing costs.

Previous wording

Provision for credit losses –For the three months ended June 30, 2025, provision for credit losses increased 181.9% to $8.3 million from $3.0 million during the comparable period in 2024. For the six months ended June 30, 2025, provision for credit losses increased 147.5% to $20.3 million from $8.2 million during the comparable period in 2024. The increase is primarily attributable to specific reserves on individual credits and overall loan growth in the retained portfolio.

Current wording

Provision for credit losses –For the three months ended September 30, 2025, provision for credit losses increased 57.3% to $8.3 million from $5.3 million during the comparable period in 2024. For the nine months ended September 30, 2025, provision for credit losses increased 112.2% to $28.7 million from $13.5 million during the comparable period in 2024. The increase is primarily attributable to overall loan growth in the retained portfolio and specific reserves on individual credits.

Previous wording

For the six months ended June 30, 2025, other operating expenses increased 89.3% to $417.3 million from $220.5 million during the comparable period in 2024. The increase is primarily attributable to higher legal-related expenses, advertising, licensing fees, professional fees, subscriptions, travel and conference-related expenses, and investment banking transaction expenses, partially offset by lower bank service charges. During the first quarter of 2025, we recorded $180.0 million related to provisions for legal-related matters.

Current wording

For the nine months ended September 30, 2025, other operating expenses increased 57.6% to $552.2 million from $350.4 million during the comparable period in 2024. The increase is primarily attributable to higher legal-related expenses, professional fees, advertising, investment banking expenses, travel and conference-related expenses, insurance expenses, subscriptions, and licensing fees. During the first quarter of 2025, we recorded $180.0 million related to provisions for legal-related matters.

Previous wording

Provision for income taxes – For the three and six months ended June 30, 2025, our provision for income taxes was $58.8 million and $69.1 million, representing an effective tax rate of 27.5% and 24.9%, respectively, compared to $61.6 million and $116.7 million for the comparable periods in 2024, representing an effective tax rate of 27.1% and 26.2%, respectively.

Current wording

Provision for income taxes – For the three and nine months ended September 30, 2025, our provision for income taxes was $74.7 million and $143.8 million, representing an effective tax rate of 26.1% and 25.5%, respectively, compared to $58.2 million and $174.9 million for the comparable periods in 2024, representing an effective tax rate of 26.8% and 26.4%, respectively.

Previous wording

Our Global Wealth Management segment consists of two businesses, the Private Client Group and Stifel Bancorp. The Private Client Group includes branch offices and 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.

Current wording

Our Global Wealth Management segment consists of two businesses, the Private Client Group and Stifel Bancorp. The Private Client Group includes branch offices and 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 Stifel Bancorp, 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.

Previous wording

For the three months ended June 30, 2025, Global Wealth Management net revenues increased 5.6% to $845.6 million from $801.1 million for the comparable period in 2024. For the six months ended June 30, 2025, Global Wealth Management net revenues increased 6.6% to a record $1.7 billion from $1.6 billion for the comparable period in 2024. The increase in net revenues over the comparable periods in 2024 is primarily attributable to higher asset management revenues, net interest income, commission revenues, and investment banking revenues, partially offset by lower principal transactions revenues.

Current wording

For the three months ended September 30, 2025, Global Wealth Management net revenues increased 9.7% to a record $907.4 million from $827.1 million for the comparable period in 2024. For the nine months ended September 30, 2025, Global Wealth Management net revenues increased 7.6% to a record $2.6 billion from $2.4 billion for the comparable period in 2024. The increase in net revenues over the comparable periods in 2024 is primarily attributable to higher asset management revenues, net interest income, commission revenues, and investment banking revenues, partially offset by lower principal transactions revenues.

Previous wording

Principal transactions – For the three months ended June 30, 2025, principal transactions revenues decreased 2.5% to $54.5 million from $55.8 million in the comparable period in 2024. For the six months ended June 30, 2025, principal transactions revenues decreased 1.2% to $115.0 million from $116.4 million in the comparable period in 2024.

Current wording

Principal transactions – For the three months ended September 30, 2025, principal transactions revenues decreased 3.6% to $61.2 million from $63.5 million in the comparable period in 2024. For the nine months ended September 30, 2025, principal transactions revenues decreased 2.0% to $176.2 million from $179.9 million in the comparable period in 2024. The decrease is primarily attributable to lower realized trading gains and decreased client activity over the comparable periods in 2024.

Previous wording

Asset management – For the three months ended June 30, 2025, asset management revenues increased 6.0% to $403.6 million from $380.7 million in the comparable period in 2024. For the six months ended June 30, 2025, asset management revenues increased 8.7% to $813.1 million from $748.2 million in the comparable period in 2024. The increase is primarily attributable to higher asset values and net new assets. Fee-based account revenues are primarily billed based on asset values at the end the prior quarter.

Current wording

Asset management – For the three months ended September 30, 2025, asset management revenues increased 12.8% to $431.4 million from $382.3 million in the comparable period in 2024. For the nine months ended September 30, 2025, asset management revenues increased 10.1% to $1.2 billion from $1.1 billion in the comparable period in 2024. The increase is primarily attributable to higher asset values and net new assets. Fee-based account revenues are primarily billed based on asset values at the end the prior quarter.

Previous wording

Investment banking – Investment banking, which represents sales credits for investment banking underwritings, increased 7.7% to $6.2 million for the three months ended June 30, 2025 from $5.8 million during the comparable period in 2024. For the six months ended June 30, 2025, investment banking revenues increased 20.6% to $12.1 million from $10.1 million during the comparable period in 2024. Please refer to “Investment banking” in the Institutional Group segment discussion for information on the changes in net revenues.

Current wording

Investment banking – Investment banking, which represents sales credits for investment banking underwritings, increased 5.0% to $6.5 million for the three months ended September 30, 2025 from $6.2 million during the comparable period in 2024. For the nine months ended September 30, 2025, investment banking revenues increased 14.6% to $18.7 million from $16.3 million during the comparable period in 2024. Please refer to “Investment banking” in the Institutional Group segment discussion for information on the changes in net revenues.

Previous wording

Interest revenue – For the three months ended June 30, 2025, interest revenue decreased 3.0% to $456.4 million from $470.4 million in the comparable period in 2024. For the six months ended June 30, 2025, interest revenue decreased 4.5% to $907.9 million from $950.7 million during the comparable period in 2024. The decrease is primarily attributable to lower interest rates, partially offset by higher interest-earning assets. Please refer to “Net Interest Income – Stifel Bancorp” below for a further discussion of the changes in net interest income.

Current wording

Interest revenue – For the three months ended September 30, 2025, interest revenue decreased 5.0% to $460.1 million from $484.2 million in the comparable period in 2024. For the nine months ended September 30, 2025, interest revenue decreased 4.7% to $1.37 billion from $1.43 billion during the comparable period in 2024. The decrease is primarily attributable to lower interest rates, partially offset by higher interest-earning assets. A significant amount of interest revenue is generated by the interest-earning assets held at Stifel Bancorp. Please refer to “Net Interest Income” below for a further discussion of the changes in net interest income.

Previous wording

Other income – For the three months ended June 30, 2025, other income decreased 195.3% to a loss of $1.0 million from $1.0 million in the comparable period in 2024. The decrease is primarily attributable to losses on the sale of investments, partially offset by an increase in loan origination fees during the quarter. For the six months ended June 30, 2025, other income increased 25.8% to $2.2 million from $1.8 million during the comparable period in 2024. The increase is primarily attributable to lower investment losses, partially offset by a decrease in loan origination fees.

Current wording

Other income – For the three months ended September 30, 2025, other income increased 81.5% to $9.1 million from $5.0 million in the comparable period in 2024. For the nine months ended September 30, 2025, other income increased 67.0% to $11.4 million from $6.8 million during the comparable period in 2024. The increase is primarily attributable to higher investment gains, partially offset by a decrease in loan origination fees during the comparable periods in 2024.

Previous wording

Interest expense – For the three months ended June 30, 2025, interest expense decreased 13.6% to $202.3 million from $234.1 in the comparable period in 2024. For the six months ended June 30, 2025, interest expense decreased 14.6% to $408.2 million from $478.2 million during the comparable period in 2024. The decrease is primarily attributable to lower interest rates, partially offset by higher interest-bearing liabilities. Please refer to “Net Interest Income – Stifel Bancorp” below for a further discussion of the changes in net interest income.

Current wording

Interest expense – For the three months ended September 30, 2025, interest expense decreased 16.7% to $202.7 million from $243.3 in the comparable period in 2024. For the nine months ended September 30, 2025, interest expense decreased 15.3% to $611.0 million from $721.5 million during the comparable period in 2024. The decrease is primarily attributable to lower interest rates, partially offset by higher interest-bearing liabilities. A significant amount of interest expense is generated by the interest-bearing liabilities held at Stifel Bancorp. Please refer to “Net Interest Income” below for a further discussion of the changes in net interest income.

Previous wording

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, 2025 compared to the three and six month periods ended June 30, 2024(in thousands):

Current wording

The following table sets forth an analysis of the effect on net interest income of volume and rate changes for the three and nine month periods ended September 30, 2025 compared to the three and nine month periods ended September 30, 2024(in thousands):

Previous wording

For the three months ended June 30, 2025, interest revenue of $438.6 million was generated from average interest-earning assets of $31.0 billion at an average interest rate of 5.66%. Interest revenue of $454.9 million for the comparable period in 2024 was generated from average interest-earning assets of $29.2 billion at an average interest rate of 6.22%.

Current wording

For the three months ended September 30, 2025, interest revenue of $443.5 million was generated from average interest-earning assets of $31.0 billion at an average interest rate of 5.72%. Interest revenue of $469.1 million for the comparable period in 2024 was generated from average interest-earning assets of $30.0 billion at an average interest rate of 6.26%.

Previous wording

For the six months ended June 30, 2025, interest revenue of $875.3 million was generated from average interest-earning assets of $31.1 billion at an average interest rate of 5.62%. Interest revenue of $919.9 million for the comparable period in 2024 was generated from average interest-earning assets of $29.7 billion at an average interest rate of 6.19%.

Current wording

For the nine months ended September 30, 2025, interest revenue of $1.3 billion was generated from average interest-earning assets of $31.1 billion at an average interest rate of 5.65%. Interest revenue of $1.4 billion for the comparable period in 2024 was generated from average interest-earning assets of $29.8 billion at an average interest rate of 6.22%.

Previous wording

Interest expense represents interest on customer money market accounts, interest on time deposits, Federal Home Loan Bank advances, and other interest expense. For the three months ended June 30, 2025, interest expense of $189.5 million was incurred from average interest-bearing liabilities of $28.6 billion at an average interest rate of 2.65%. Interest expense of $222.0 million for the comparable period in 2024 was incurred from average interest-bearing liabilities of $26.8 billion at an average interest rate of 3.31%.

Current wording

Interest expense represents interest on customer money market accounts, interest on time deposits, Federal Home Loan Bank advances, and other interest expense. For the three months ended September 30, 2025, interest expense of $189.9 million was incurred from average interest-bearing liabilities of $28.6 billion at an average interest rate of 2.66%. Interest expense of $231.4 million for the comparable period in 2024 was incurred from average interest-bearing liabilities of $27.6 billion at an average interest rate of 3.35%.

Previous wording

For the six months ended June 30, 2025, interest expense of $384.0 million was incurred from average interest-bearing liabilities of $28.7 billion at an average interest rate of 2.68%. Interest expense of $453.1 million for the comparable period in 2024 was incurred from average interest-bearing liabilities of $27.3 billion at an average interest rate of 3.32%.

Current wording

For the nine months ended September 30, 2025, interest expense of $573.8 million was incurred from average interest-bearing liabilities of $28.6 billion at an average interest rate of 2.67%. Interest expense of $684.4 million for the comparable period in 2024 was incurred from average interest-bearing liabilities of $27.4 billion at an average interest rate of 3.33%.

Previous wording

Please refer to “Net Interest Income – Stifel Bancorp” above for more information regarding average balances, interest income and expense, and average interest rate yields.

Current wording

Please refer to “Net Interest Income” above for more information regarding average balances, interest income and expense, and average interest rate yields.

Previous wording

For the three months ended June 30, 2025, Global Wealth Management non-interest expenses increased 7.5% to $539.6 million from $502.0 million for the comparable period in 2024. For the six months ended June 30, 2025, Global Wealth Management non-interest expenses increased 26.2% to $1.3 billion from $1.0 billion for the comparable period in 2024.

Current wording

For the three months ended September 30, 2025, Global Wealth Management non-interest expenses increased 7.5% to $564.8 million from $525.4 million for the comparable period in 2024. For the nine months ended September 30, 2025, Global Wealth Management non-interest expenses increased 19.7% to $1.8 billion from $1.5 billion for the comparable period in 2024.

Previous wording

Compensation and benefits – For the three months ended June 30, 2025, compensation and benefits expense increased 6.9% to $420.2 million from $392.9 million during the comparable period in 2024. For the six months ended June 30, 2025, compensation and benefits expense increased 7.7% to $842.5 million from $782.5 million during the comparable period in 2024. The increase is primarily attributable to increased variable compensation over the comparable periods in 2024.

Current wording

Compensation and benefits – For the three months ended September 30, 2025, compensation and benefits expense increased 9.5% to $441.6 million from $403.2 million during the comparable period in 2024. For the nine months ended September 30, 2025, compensation and benefits expense increased 8.3% to $1.3 billion from $1.2 billion during the comparable period in 2024. The increase is primarily attributable to increased variable compensation over the comparable periods in 2024.

Previous wording

Occupancy and equipment rental – For the three months ended June 30, 2025, occupancy and equipment rental expense increased 4.4% to $46.1 million from $44.2 million during the comparable period in 2024. For the six months ended June 30, 2025, occupancy and equipment rental expense increased 3.6% to $90.6 million from $87.5 million during the comparable period in 2024. The increase is primarily attributable to higher data processing expense, occupancy costs, and furniture and equipment expenses over the comparable periods in 2024 associated with an increase in business activity.

Current wording

Occupancy and equipment rental – For the three months ended September 30, 2025, occupancy and equipment rental expense increased 7.1% to $46.2 million from $43.1 million during the comparable period in 2024. For the nine months ended September 30, 2025, occupancy and equipment rental expense increased 4.8% to $136.8 million from $130.6 million during the comparable period in 2024. The increase is primarily attributable to higher data processing expense, occupancy costs, and furniture and equipment expenses over the comparable periods in 2024 associated with an increase in business activity.

Previous wording

Communications and office supplies – For the three months ended June 30, 2025, communications and office supplies expense decreased 1.6% to $16.0 million from $16.2 million during the comparable period in 2024. For the six months ended June 30, 2025, communications and office supplies expense decreased 1.3% to $32.3 million from $32.8 million during the comparable period in 2024. The decrease is primarily attributable to lower telecommunication expenses, partially offset by higher postage and shipping expenses.

Current wording

Communications and office supplies – For the three months ended September 30, 2025, communications and office supplies expense decreased 1.2% to $16.2 million from $16.4 million during the comparable period in 2024. For the nine months ended September 30, 2025, communications and office supplies expense decreased 1.2% to $48.5 million from $49.1 million during the comparable period in 2024. The decrease is primarily attributable to lower telecommunication expenses, partially offset by higher postage and shipping and communication and quote expenses.

Previous wording

Provision for credit losses –For the three months ended June 30, 2025, provision for credit losses increased 181.9% to $8.3 million from $3.0 million during the comparable period in 2024. For the six months ended June 30, 2025, provision for credit losses increased 156.9% to $20.3 million from $7.9 million during the comparable period in 2024. The increase is primarily attributable to specific reserves on individual credits and overall loan growth in the retained portfolio.

Current wording

Provision for credit losses –For the three months ended September 30, 2025, provision for credit losses increased 57.3% to $8.3 million from $5.3 million during the comparable period in 2024. For the nine months ended September 30, 2025, provision for credit losses increased 117.0% to $28.7 million from $13.2 million during the comparable period in 2024. The increase is primarily attributable to overall loan growth in the retained portfolio and specific reserves on individual credits.

Previous wording

For the six months ended June 30, 2025, other operating expenses increased 237.0% to $263.4 million from $78.2 million during the comparable period in 2024. The increase is primarily attributable to increases in legal-related expenses, subscription costs, insurance expenses, travel-related expenses, and professional fees, partially offset by lower bank service charges. During the first quarter of 2025, we recorded $180.0 million related to provisions for legal-related matters.

Current wording

For the nine months ended September 30, 2025, other operating expenses increased 140.1% to $308.7 million from $128.6 million during the comparable period in 2024. The increase is primarily attributable to increases in legal-related expenses, subscription costs, insurance expenses, and travel and conference-related expenses. During the first quarter of 2025, we recorded $180.0 million related to provisions for legal-related matters.

Previous wording

Profit margins (income before income taxes as a percent of net revenues) have decreased to 36.2% and 25.5% for the three and six months ended June 30, 2025, respectively, from 37.3% and 37.1% during the comparable periods in 2024. Profit margins were negatively impacted by higher provisions for credit losses and elevated reserves for legal matters recorded in the first quarter of 2025.

Current wording

For the nine months ended September 30, 2025, income before income taxes decreased 13.1% to $775.1 million from $891.6 million during the comparable period in 2024. Profit margins (income before income taxes as a percent of net revenues) decreased to 29.8% for the nine months ended September 30, 2025, from 36.9% during the comparable period in 2024. The profit margin for the nine months ended September 30, 2025 was negatively impacted by elevated reserves for legal matters and higher provisions for credit losses.