Company: SFB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027702
Chunk: 308

Company: STIFEL FINANCIAL CORP
Filing Date: 2025-02-26
Form: 10-K
Item: Item 3
Chunk 308
---
,627

    $
    876,106

    $
    5,437,218

    $
    4,013,838

    Interest-bearing liabilities:

    Transaction accounts and savings
     
    $
    28,608,776

    $
    —

    $
    —

    $
    —

    Certificates of deposit

    196,630

    6,951

    —

    —

    Borrowings

    —

    —

    —

    —

    $
    28,805,406

    $
    6,951

    $
    —

    $
    —

    GAP

    (8,001,779
    )

    869,155

    5,437,218

    4,013,838

    Cumulative GAP
     
    $
    (8,001,779
    )
     
    $
    (7,132,624
    )
     
    $
    (1,695,406
    )
     
    $
    2,318,432

Equity Price Risk

We are exposed to equity price risk as a consequence of making markets in equity securities. We attempt to reduce the risk of loss inherent in our inventory of equity securities by monitoring those security positions constantly throughout each day.

Our equity securities inventories are repriced on a regular basis, and there are no unrecorded gains or losses. Our activities as a dealer are client-driven, with the objective of meeting clients’ needs while earning a positive spread.

Credit Risk

We are engaged in various trading and brokerage activities, with the counterparties primarily being broker-dealers. In the event counterparties do not fulfill their obligations, we may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. We manage this risk by imposing and monitoring position limits for each counterparty, monitoring trading counterparties, conducting regular credit reviews of financial counterparties, reviewing security concentrations, holding and marking to market collateral on certain transactions, and conducting business through clearing organizations, which guarantee performance.

Our client activities involve the execution, settlement, and financing of various transactions on behalf of our clients. Client activities are transacted on either a cash or margin basis. Credit exposure associated with our private client business consists primarily of customer margin accounts, which are monitored daily and are collateralized. We monitor exposure to industry sectors and individual securities and perform analyses on a regular basis in connection with our margin lending activities. We adjust