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SHAREHOLDER LETTERMOVING FORWARD, BACK TO THE OFF ICEOne of the few silver linings of the pandemic is that it spurred us to adopt new tools and technologies for the workplace.I am impressed with the determination shown by our associates this year, using all their resources – and quickly adoptingnew ones – to overcome the myriad obstacles to doing business in the face of COVID-19. That we were able to service clientsand manage volatile markets, even with most of our associates working remotely, underscores the dedication of our people,the comprehensiveness of our business continuity plans, and the flexibility of our technology platform. To the people of Stifel,I say thank you.But now, even after the demonstrated success of remote work, we must plan for life after COVID-19. There is no doubt inmy mind about the importance of physically working together. The benefits are clear – in training, collaborating, innovating,networking, and more. It is simply the best way to continue to build on our culture. As I write this letter, our country is in theprocess of vaccination and I can see life returning to some normalcy, although not yet to completely pre-pandemic conditions.For Stifel, this will include a return to our offices. Rest assured, I am committed to ensuring that this occurs in a safe andfair manner.GOVERNMENT SPENDING AND THE RISK OF INFLATIONI would be remiss if I didn’t discuss the impact of fiscal and monetary policy. In the short term, the CARES Act, combinedwith the additional stimulus in January, the American Rescue Plan Act of 2021, and the Biden administration’s proposedinfrastructure bill, together total nearly 6.5 trillion. That is approximately one-third of U.S. GDP. This stimulus, which constituteswar-level spending, is nine times larger than the Obama-era American Recovery and Reinvestment Act of 2009. Coupled withvery accommodative monetary policy, this level of government spending has, in my opinion, more than offset the negative dragon our economy resulting from COVID-19.So, upon reflection, it should be little surprise that the markets, and many asset classes, have surged in value. On the otherside of the ledger, credit spreads are historically compressed due to accommodative policy. Looking toward the back half of2021, assuming effective vaccination, there is a high probability of excess demand as people use their savings and stimulusto consume. Combined with renewed business investment, this excess may lead to upward price pressures.So what is there to worry about? In my experience, when I am told that certain risks are low and can be managed, those arethe risks that have the potential to be most disruptive if the consensus is proven wrong. Today, and frankly for the last decade,markets seem convinced that inflation poses little risk, and that we have sufficient tools to combat increasing inflationexpectations when they arise. Without doubt, the Fed can manage short-term rates and adjust quantitative easing, and it haspublicly stated its intention to keep rates low while allowing inflation to run above its stated goal of 2%. However, longer-termTreasury yields will adjust independently and have greater effect on the equity markets, especially on high-growth stocks. Asseen on the Bloomberg screen blinking before me, expectations right now indicate sharper rate increases, evidenced in theyields on inflation-protected Treasuries, often referred to as real yields. Therefore, as is always the case, be cognizant of longerterm yields as they relate to equities.THE SOCIAL SIDE OF INVESTINGAs markets evolve, some things never change. As an example, take thestrange saga of GameStop (“GME”), which seems to represent one of thosegrand, confounding collisions of technology and culture. With the very ideaof a “meme stock,” the dwellers of Reddit’s r/wallstreetbets forum have shownus the possibility of a strange new mingling of social media and financialmarkets. Meanwhile, with “free” online trading apps in hand, anyone can jointhe speculation as easily as playing fantasy football. The optimist in me wantsto see these trends mature, to see them live up to the promise of democratizinginvesting while increasing general financial literacy. The realist in me fears thatwe will see little more than the occasional speculative flare-up – fueled by thesavings of those who can afford it least. To me, the most important thing toremind people is not to get caught up in the fear of missing out. Despite thenew technologies, apps, and platforms involved, the core story of GME is avery old one, and the ending never changes.4optimist in me wants to“seeThethesetrends mature, to seethem live up to the promise ofdemocratizing investing whileincreasing general financialliteracy. The realist in mefears that we will see littlemore than the occasionalspeculative flare-up – fueledby the savings of thosewho can afford it least.”

THE CURRENCY OF CRYPTOAs speculative activity and freely available liquidity have surged, cryptocurrencies such as Bitcoin have also sharplyincreased in price. Speculative swings aside, their utility as a currency and an investment vehicle varies around the world.Some countries, including China and India, place strict restrictions on their use, while others, like the United States, view eachcryptocurrency transaction – whether for goods, services, or in exchange for national currency – as a taxable event. At thesame time, Bitcoin mining consumes an ever-larger proportion of global electricity, with one recent report stating that itselectricity consumption equals that of Pakistan, which has a population of 216 million. At that level of inefficiency, it is unclearwhether cryptocurrencies are suitable for ESG investment goals. Still, cryptocurrencies and especially blockchains are agenuine financial innovation. They allow decentralized, distributed entities to come to consensus about transactions andownership in a way that was not possible before. It is not their novelty that is in question, but the scope of their usefulness,and their general applicability as a currency and an investment. In the meantime, while they are so rapidly evolving andso fiercely competing with one another, their volatility must limit their portfolio suitability.Whether we are talking about the next Amazon, the trade-offs of crypto, or the latest scheme on social media, investors todayface an astounding menu of investment opportunities – and just as many potential pitfalls. In our business, we must decidehow we will use technology to help people manage it all. First and foremost, I believe we have a responsibility not to usetechnology to inflame exuberance about new ideas. However glad we are to see a new generation’s evolving perspective oninvesting, our goal is not to make it easier for them to pile into and rush out of speculative meme stocks. Rather, technologycan help people get organized, increase their access to advice and research, and guide them in evaluating an ever-growingpanoply of opportunity. At Stifel, we are investing in technology that helps people make sound decisions and lay stablefoundations for the future, which means knowing when to say “yes” to a new idea – and more importantly, when to say “no.”130 YEARS AND COUNTINGIn conclusion, as I began, I want to emphasize theimportance of our people and culture. When we lookback on the trial that was 2020, our success will foreverbe a testament to the resiliency of our culture – the sameculture of adaptability and independence that has seen usthrough the other great hardships of our 130-year history.Through the influenza pandemic of 1918, two world wars,the Great Depression, the Great Recession, and more, wehave continued to be successful not because we standapart, nor because we are somehow immune to thestruggles of the nation as a whole. We are successfulbecause we can change – and change withoutFrom our humble beginnings in 1890compromising our core values of independence andto where we are todayentrepreneurship. In fact, those values demand thatwe be always changing, always adapting, and alwaysevolving. That is why each of our associates has the power to think independently, to raise issues, and to challenge thewisdom and folly of the status quo. This year has been a test of our ability to use that power not only to respond to crisis, butalso to look critically at our own biases and inequities. Our success thus far is nothing more than a call to continue this work,alongside the rest of the nation, into the next year.Finally, I would like to thank Jim Oates, who has informed me of his intention to retire, for hisnearly three decades of service as a Stifel Director. Jim was instrumental in my decision to joinStifel 25 years ago and has been a reliably fair, thoughtful, and, at times, appropriately criticalvoice. Jim has helped guide Stifel’s incredible growth and has also been a partner and a mentor.I, and our shareholders, will miss his wisdom.As always, we sincerely thank our shareholders and clients for their support, as well as our morethan 8,500 associates for their commitment to excellence.James M. OatesStifel Director Since 1996RONALD J. KRUSZEWSKI5Chairman of the Board and Chief Executive OfficerMarch 2021

YEAR IN REVIEWIn 2020, Stifel reported:2020 RESULTS Record net revenues of 3.8 billion, increased 12.4%compared with 2019.(in thousands, except per share amounts)20202020.% 3,817,8399.9.TOTAL F IRM Record net revenues in Global Wealth Management.Total Revenues Record net revenues and pre-tax operating incomein Institutional Group.Non-GAAP Net IncomeNon-GAAP EPS Record net income available to common shareholdersof 476.2 million, or 4.16 per diluted common share.522,8474.5612.GLOB AL WEALTH MANAGE MENTNet RevenuesContribution Record non-GAAP net income available to commonshareholders of 522.8 million, or 4.56 per dilutedcommon 7.INST I TUTION AL GROUPFor the year ended December 31, 2020, the Company reportednet income available to common shareholders of 476.2 million,or 4.16 per diluted common share, on record net revenues of 3.8 billion, compared with net income available to commonshareholders of 431.1 million, or 3.66* per diluted commonshare, on net revenues of 3.3 billion for the comparable in 2019.The Company reported non-GAAP net income available tocommon shareholders of 522.8 million, or 4.56 per dilutedcommon share. The Company’s reported GAAP net income forthe year ended December 31, 2020, was primarily impacted bymerger-related expenses. Details are discussed below and inthe “Reconciliation of GAAP Net Income to Non-GAAP NetIncome” section.Equity Net RevenuesFixed Income Net RevenuesNet RevenuesContribution652,1 65571,583,1 47325,2853085INSTITUTIONAL BROKERAGEEquity256,79354Fixed Income404,78958Total661 ,58257Equity705,26118Fixed Income247,04713Total952,30817Capital Raising524,16142IN VESTMENT BANKINGWe continuously strive to improve client service and investAdvisory428,1 47(4)in our future, and we are also focused on improving ouroperational efficiency. Four years ago, we articulated a strategyPercent represents the increase/(decrease) over prior year results.to identify costs, savings, and efficiencies, and to further integrateour businesses. These steps have resulted in a meaningful improvement in our non-GAAP performance metrics as comparedto 2016, as our: Compensation ratio improved to 59.9% vs. 62.8%; Non-compensation expense ratio improved to 21.1% vs. 24.1%; Pre-tax margin improved to 19.0% vs. 13.1%; and Return on tangible equity improved to 24.7% vs. 15%.A clear benefit of our improved financial metrics is the generation of significant cash flow. We remain focused on maximizingrisk-adjusted returns when deploying our capital, yet as a growth company, we believe that investing in our business toenhance our relevance to our clients is essential. In 2020, these investments included the significant hiring of talentedpeople to further expand our revenue base as we fully integrated our six acquisitions from 2019. Furthermore, we continuedto make essential investments in technology to improve the client experience as well as the efficiency of our associates.In addition to focusing on strategic hiring and investments in technology, we utilized the strength of our balance sheet toreturn approximately 185 million to shareholders through dividends, net settlement of restricted stock units, and sharerepurchases. Today, there exists a significant debate, primarily political in nature, about the appropriateness of sharerepurchases. We view share repurchases as an important capital tool, yet understand the importance of buying back stockat a reasonable price. Said another way, share repurchases should add value to remaining shareholders. Of course, weunderstand the policy discussion restricting share repurchases if a company needs government assistance.6

Both of our operating segments had outstanding years. Global Wealth Management achieved record revenue of 2.2 billion,an increase of 3% over 2019. Our Institutional business achieved record revenue of 1.6 billion, up 30% from 2019.GLOBAL WEALTH MANAGEMENTWithin Global Wealth Management, our Private Client Group now consists of nearly 2,300 financial advisors who serve clientsfrom 392 offices across the country. We had a strong year for financial advisor recruiting, opening 16 new Private Client Groupoffices and adding 131 financial advisors from a variety of firms. The success of this group emanates from the entrepreneurialcharacter of each of our financial advisors. As always, our goal is to support them with the tools and resources they need to dowhat they do best: build strong relationships with clients to better define and meet their financial goals.We achieved record results in Global Wealth Management despite the fact that our net interest income and sweep fee incomedeclined by approximately 96 million. Excluding this impact, our full-year wealth management revenue increased 9%, drivenby strong growth in our brokerage and asset management revenues, both which reflect strong recruiting and markets.Our Global Wealth Management business continues to benefit from growth and stability of revenue. As of the end of 2020, wemanaged approximately 357 billion in client assets, up 9% from 2019. Our assets under administration and fee-based assetswere impacted by the sale of Ziegler Capital Management. Excluding the Ziegler sale, our fee-based assets increased 22%.We continue to grow our technology and digital offerings to create amore efficient and personalized experience for clients and advisors.We’ve ramped up efforts to provide our financial advisors with the mostcutting-edge digital marketing capabilities in the marketplace, usingtechnology to support our advice-based model. We now have a suiteof offerings that enable our advisors to better communicate with theirclients as well as prospects. Stifel Wealth Tracker continues to helpclients and prospects and now features new cash management anddigital banking capabilities. From a client/prospect communicationstandpoint, the app offers proprietary insights and reports from Stifel’sCIO Office and research analysts. We’ve also rolled out powerful new client performance reporting tools and a new CRMimplementation that will enable 100% mobility and fully integrate with our key business applications.Stifel Bancorp ended the year with 18.9 billion in assets while maintaining a conservative risk profile. Stifel Bancorp’s creditmetrics remained solid, with a non-performing asset ratio of 0.07%, an improvement of two basis points from 2019. Our assetquality metrics compare very favorably to the overall market and reflect our conservative approach. Firm-wide assets totaled 26.6 billion, and we ended the year with a Tier 1 leverage ratio of 11.9% and a risk-based capital ratio of 20.2%.INSTITUTIONAL GROUPInvestment Banking revenues totaled 916 million in 2020. Capital-raising revenue totaled a record 524 million, a 42%increase from 2019, while advisory revenue was 428 million.In 2020, a surge in volatility and the significant contraction of economic activity negatively impacted our advisory businessin the early part of the year, particularly in the financials and technology verticals, as well as our fund placement business.Taken alone, these factors without the subsequent pickup might well have led to a decline in revenue from 2019.However, the diversity of our business model, coupled with a rebound in activity in the second half of 2020, enabled usnot only to post another record year, but to surpass the high end of our guidance. This was due to the fact that our 2019acquisitions performed slightly better than we expected, and our investment banking business benefited from the strengthof our healthcare franchise, which more than offset the weakness in financials.On the advisory front, we completed 183 M&A strategic advisory assignments. In terms of verticals, our top performers wereconsumer, industrials, and technology.Noteworthy assignments include serving as financial advisor to Ionis on its 500 millionacquisition of the remaining 24% of Akcea common stock it did not already own; exclusivefinancial advisor to Urban Farmer in its sale to Paine Schwartz Partners; and exclusive advisorto Velocity Technology Solutions Inc. in its sale to Navisite, owned by Madison DearbornPartners. In addition, we won The M&A Advisor’s “Strategic Deal of the Year” Award in the 50 million – 100 million category for advising on the sale of B&G Crane Services.7The M&A Advisor’s“Strategic Deal ofthe Year” Award

YEAR IN REVIEWOur KBW subsidiary posted another solid year despite the headwinds of 2020, advising on three of the top five largest U.S.bank mergers: Huntington Bancshares Incorporated’s merger with TCF Financial Corporation, South State Corporation’s mergerwith CenterState Bank Corporation, and First Citizens BancShares, Inc.’s merger with CIT Group Inc.With respect to equity capital raising, we completed 30 book-run IPOs and 71 book-run follow-ons in 2020. Notabletransactions include serving as joint global coordinator and joint bookrunner to Renalytix on its cross-border IPO; solebookrunner to Inseego on its 100 million convertible senior notes offering;

2 3 Stifel stock followed a similar trajectory for the year. During the same month of March, Stifel stock hit an annual low of 20.75, as adjusted for the December 2020 three-for-two stock split, which was down 49% from the beginning of 2020.