Company: SFB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027702
Chunk: 533

Company: STIFEL FINANCIAL CORP
Filing Date: 2025-02-26
Form: 10-K
Item: Item 3
Chunk 533
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 2.1% to $596.4 million from $583.9 million in 2023. The increase is primarily attributable to an increase in variable compensation and the recording of severance costs during 2024 associated with workforce reductions in certain subsidiaries, partially offset by lower provisions for legal and regulatory matters. During the year ended December 31, 2023, we recorded $67.0 million related to provisions for legal and regulatory matters.

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 year ended December 31, 2024, non-interest expenses related to our acquisition strategy, included in the numbers presented in the table above, increased 12.0% to $70.8 million from $63.2 million in 2023.

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 $39.9 billion at December 31, 2024, were up 5.7% over December 31, 2023. 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 December 31, 2024, our liabilities were comprised primarily of deposits of $29.1 billion at Stifel Bancorp, accounts payable and accrued expenses of $0.7 billion, senior notes, net of debt issuance costs, of $0.6 billion, payables to customers of $468.8 million at our broker-dealer subsidiaries, and accrued employee compensation of $790.2 million. To meet our obligations to clients and operating needs, we had $12.9 billion of cash or assets readily convertible into cash at December 31, 2024.

Cash Flow

Cash and cash equivalents decreased $0.7 billion to $2.6 billion at December 31, 2024, from $3.4 billion at