Profile: Stifel Financial Corp (SF)
18 Jan 2017
Stifel Financial Corp., incorporated on December 31, 1981, is a financial holding company. The Company's principal subsidiary is Stifel, Nicolaus & Company, Incorporated (Stifel), a full-service retail and institutional wealth management and investment banking firm. Its principal activities are private client services, including securities transaction and financial planning services; institutional equity and fixed income sales, trading, research and municipal finance; investment banking services, including mergers and acquisitions, public offerings and private placements, and retail and commercial banking, including personal and commercial lending programs. The Company operates through three segments: Global Wealth Management, Institutional Group and Other. The Global Wealth Management segment consists of two businesses, such as the Private Client Group and Stifel Bank. The Private Client Group includes branch offices and independent contractor offices of its 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 offers banking products to its private clients through Stifel Bank, which provides residential, consumer and commercial lending, as well as the Federal Deposit Insurance Corporation (FDIC)-insured deposit accounts to customers of its broker-dealer subsidiaries and to the general public. The Institutional Group segment includes research, equity and fixed income institutional sales and trading, investment banking, public finance, and syndicate. The Other segment includes interest income from stock borrow activities and interest income, among others.
The Company, through its subsidiaries, is principally engaged in retail brokerage, securities trading, investment banking, investment advisory, retail, consumer, and commercial banking, and related financial services. The Company's other subsidiaries include Century Securities Associates, Inc. (CSA), Keefe, Bruyette & Woods, Inc. (KBW), Miller Buckfire & Co. LLC (Miller Buckfire), Stifel Nicolaus Europe Limited (SNEL), Stifel Bank & Trust, Stifel Trust Company Delaware, N.A., Sterne Agee Group, Inc., 1919 Investment Counsel & Trust Company, National Association (1919 Investment Counsel) and Ziegler Capital Management, LLC (ZCM).
Global Wealth Management
The Company's Global Wealth Management segment provides securities transaction, brokerage and investment services to its clients through the consolidated Stifel branch system. The Global Wealth Management segment also provides customer financing and asset management services. The Private Client Group has a network of over 2,170 financial advisors located in approximately 330 branch offices in over 45 states and the District of Columbia. In addition, the Company has over 720 independent contractors. The Company's financial advisors provide a range of investments and services to its clients, including financial planning services. It offers equity securities; taxable and tax-exempt fixed income securities, including municipal, corporate, and government agency securities; preferred stock, and unit investment trusts. The Company also offers a range of externally managed fee-based products. In addition, it offers insurance and annuity products and investment company shares through agreements with a range of third-party distributors. The Company's independent contractors provide the same types of financial products and services to its private clients as does Stifel. Under the contractual arrangements, these independent contractors also provides accounting services, real estate brokerage, insurance, or other business activities for their own account. CSA is an introducing broker-dealer, as such, and clears its transactions through Stifel.
The Company's client securities transactions are provided on either a cash or margin basis. When securities are purchased on a margin basis, the customer deposits less than the full cost of the security in their account. The Company makes loan to the customer for the balance of the purchase price. Such loans are collateralized by the purchased securities. The Company offers securities-based lending through Stifel Bank, which allows clients to borrow money against the value of qualifying securities for any suitable purpose other than purchasing, trading, or carrying marketable securities or refinancing margin debt.
The Company's asset management business includes the operations of ZCM, 1919 Investment Counsel, and Stifel Trust. The Company's asset management business offers investment management solutions for institutions, private clients and investment advisors. It provides investment advisory related asset management services for individual and institutional investment portfolios, along with mutual funds. The investment advisory fees are earned on assets held in managed or non-discretionary asset-based programs. The Company's private client investment portfolios are based on asset values at the beginning of the period while institutional fees are based on asset values at the end of the period. Through Stifel Bank, the Company offers retail and commercial banking services to private and corporate clients, including personal loan programs, such as fixed and variable mortgage loans, home equity lines of credit, personal loans, loans secured by Certificate of Deposits (CDs) or savings, and securities-based loans, as well as commercial lending programs, such as small business loans, commercial real estate loans, lines of credit, credit cards, term loans, and inventory and receivables financing, in addition to other banking products.
The Company's Institutional Group segment provides securities brokerage, trading and research services to institutions with an emphasis on the sale of equity and fixed income products. It also includes the management of and participation in underwritings for both corporate and public finance, merger and acquisition and financial advisory services. The Company's equity sales and trading team distributes its equity research products and communicates its investment recommendations to its client base of institutional investors, executes equity trades, sells the securities of companies for which it act as an underwriter, and makes a market in domestic securities. The investment banking group focuses on middle-market companies, as well as on companies in a range of industries, including real estate, financial services, healthcare, aerospace/defense and government services, telecommunications, transportation, energy, business services, consumer services, industrial, technology and education.
The Company's syndicate department coordinates marketing, distribution, pricing and stabilization of its managed equity and debt offerings. In addition, the department coordinates its underwriting participations and selling group opportunities managed by other investment banking firms. Its public finance group acts as an underwriter and dealer in bonds issued by states, cities and other political subdivisions, and acts as manager or participant in offerings managed by other firms.
The Company's Other segment includes interest income from stock borrow activities, unallocated interest expense, interest income and gains and losses from investments held, compensation expense associated with the expensing of restricted stock awards and all unallocated overhead cost associated with the execution of orders, and processing of securities transactions. It also includes the 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.
The Company competes with FBR & Co., Oppenheimer Holdings, Inc., SWS Group, Inc., Raymond James Financial, Inc., JMP Group, Inc., Piper Jaffray Companies, Morgan Stanley and Goldman Sachs Group, Inc.
Stifel Financial Corp
501 N Broadway
ST. LOUIS MO 63102-2102