<SUBMISSION>
<ACCESSION-NUMBER>0000720672-00-500011
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20000930
<FILING-DATE>20001114
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>STIFEL FINANCIAL CORP
<CIK>0000720672
<ASSIGNED-SIC>6211
<IRS-NUMBER>431273600
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-09305
<FILM-NUMBER>769141
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE FINANCIAL PLAZA
<STREET2>501 N BROADWAY
<CITY>ST. LOUIS
<STATE>MO
<ZIP>63102-2102
<PHONE>314-342-2000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE FINANCIAL PLAZA
<STREET2>501 N BROADWAY
<CITY>ST. LOUIS
<STATE>MO
<ZIP>63102-2102
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>r10q-930.htm
<DESCRIPTION>FORM 10Q - DATED SEPTEMBER 30, 2000
<TEXT>

<HTML>
<HEAD>
<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
</HEAD>
<BODY>

<B><FONT SIZE=4><P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>
<P ALIGN="CENTER">WASHINGTON, D.C.  20549</P>
<P ALIGN="CENTER">FORM 10-Q</P>
</B></FONT>
<P>(Mark One)</P><DIR>
<DIR>

<FONT FACE="Wingdings" SIZE=4><P ALIGN="JUSTIFY">x</FONT><FONT SIZE=4>&#9;QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
</FONT><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the quarterly period ended <U>&#9;September 30, 2000&#9;</P>
</U><FONT SIZE=4><P ALIGN="CENTER">OR</P>
</FONT><FONT FACE="Wingdings" SIZE=4><P ALIGN="JUSTIFY">o</FONT><FONT SIZE=4>&#9;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
</FONT><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">For the transition period from <U>&#9;</U> to <U>&#9;</P>
<P ALIGN="JUSTIFY"></P>
</U><P ALIGN="CENTER">Commission file number <U>&#9;1-9305&#9;</P>
<P ALIGN="CENTER"></P></DIR>
</DIR>

<B><FONT SIZE=4><P ALIGN="CENTER">&#9;STIFEL FINANCIAL CORP.&#9;</P>
</B></U></FONT><FONT SIZE=2><P ALIGN="CENTER">(Exact name of registrant as specified in its charter)</P>
</FONT><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">&#9;DELAWARE&#9;</U>&#9;<U>&#9;43-1273600&#9;</P>
</U><FONT SIZE=2><P ALIGN="JUSTIFY">&#9;(State or other jurisdiction of incorporation&#9;(I.R.S. Employer Identification No.)</P>
<P ALIGN="JUSTIFY">&#9;or organization)</P>
</FONT><P ALIGN="JUSTIFY"></P>
<U><P ALIGN="JUSTIFY">&#9;501 N. Broadway, St. Louis, Missouri&#9;63102-2102&#9;</P>
</U><FONT SIZE=2><P ALIGN="JUSTIFY">&#9;(Address of principal executive offices)&#9;(Zip Code)</P>
</FONT><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Registrant's telephone number, including area code&#9;<U>&#9;314-342-2000&#9;</P>
</U><P ALIGN="JUSTIFY"></P>
<P>&#9;<U>&#9;</P>
</U><P ALIGN="CENTER">(Former name, former address, and former fiscal year,</P>
<P ALIGN="CENTER">if changed since last report)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes <FONT FACE="Wingdings">&#120;</FONT>
  No <FONT FACE="Wingdings">&#168;</FONT>
</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Shares of common stock outstanding at November 1, 2000: 7,233,579, par value $0.15.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><FONT SIZE=5><P ALIGN="CENTER"><A NAME="Index"></A>Stifel Financial Corp. And Subsidiaries</P>
</FONT><FONT SIZE=4><P ALIGN="CENTER">Form 10-Q Index</P>
<P ALIGN="CENTER">September 30, 2000</P>
<P ALIGN="CENTER"></P>
</B></FONT><P>&nbsp;</P>
<B><P>&#9;</P>
</U><FONT SIZE=4><P>PART I.  FINANCIAL INFORMATION</P>

</B></FONT><P>Item 1. Financial Statements (Unaudited)</P>

<P>&#9;Consolidated Statements of Financial Condition --
<BR>&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2000 and December 31, 1999&#9;</A></P>
<P>&#9;Consolidated Statements of Operations --
<BR>&nbsp;&nbsp;&nbsp;&nbsp;Three and Nine Months Ended September 30, 2000
<BR>&nbsp;&nbsp;&nbsp;&nbsp;and September 30, 1999&#9;</P>
<P>            </P>
<P>          &#9;Consolidated Statements of Cash Flows--
<BR>&nbsp;&nbsp;&nbsp;&nbsp;Nine Months Ended September 30, 2000 and September 30, 1999&#9;</P>

<P>&#9;Notes to Consolidated Financial Statements&#9;</P>

<P>Item 2.  Management's Discussion and Analysis of Financial Condition and
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&#9;Results of Operations &#9;</P>

<P>Item 3.  Quantitative and Qualitative Disclosure about Market Risk<FONT FACE="Tms Rmn"> &#9;</A></P>

<P>&nbsp;</P>
<B><FONT SIZE=4><P>PART II. OTHER INFORMATION</P>
</B></FONT>
<P>Item 1.  Legal Proceedings</A></P>
<P>Item 6.  Exhibit(s) and Report(s) on Form 8-K</A></P>
<P>Signatures  </A></P>
<P>&nbsp;</P>
<B><FONT SIZE=4><P><A NAME="Part_I"></A>PART I.  FINANCIAL INFORMATION</P>
<U>Item 1. Financial Statements (Unaudited)</P>

</U></FONT><P ALIGN="CENTER"><A NAME="Statements_of_Financial_Condition_1"></A>STIFEL FINANCIAL CORP. AND SUBSIDIARIES</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION</P>
</B><FONT SIZE=3><P ALIGN="CENTER">(In thousands, except par values and share amounts)</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=4 WIDTH=652>
<TR><TD WIDTH="62%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><U><FONT SIZE=2><P ALIGN="center">UNAUDITED<BR>September 30, 2000</B></U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><U><FONT SIZE=2><P ALIGN="Center">AUDITED<BR>December 31, 1999</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<U><FONT SIZE=2><P>ASSETS</U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Cash and cash equivalents</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      $  &#9;14,122</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      $&#9;16,861</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Cash segregated for the exclusive benefit of customers
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;186</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;181</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Receivable from brokers and dealers
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;30,981</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;42,037</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Receivable from customers, net of allowance for doubtful receivables of $580 and $556, respectively
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;367,638</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;313,034</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Securities owned, at fair value</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;29,803</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;28,690</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Membership in exchanges, at cost
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;470</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;470</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Office equipment and leasehold improvements, at cost, net of allowances for depreciation and amortization of $13,597 and $11,370, respectively
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;8,595</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;7,597</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Goodwill, net of accumulated amortization of $922 and $738, respectively
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT">&#9;5,296</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT">&#9;1,631</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Notes receivable from and advances to officers and employees, net of allowance for doubtful receivables from former employees of $363 and $701, respectively
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT">&nbsp;</P>
<P><P ALIGN="RIGHT">&#9;14,129</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT">&nbsp;</P>
<P><P ALIGN="RIGHT">&#9;7,934</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Deferred income taxes</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;3,089</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;2,958</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Other assets</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;41,101</U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      <U> &#9;31,717</U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<B><FONT SIZE=2><P>&#9;&#9;Total Assets</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>$&#9;515,410</B></U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>$&#9;453,110</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<U><FONT SIZE=2><P>LIABILITIES AND STOCKHOLDERS' EQUITY</U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER">Liabilities</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Short-term borrowings from banks</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      $&#9;156,100</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      $&#9;122,950</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Payable to brokers and dealers</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;168,307</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;147,059</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Payable to customers
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;29,747</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;33,643</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Securities sold, but not yet purchased, at fair value
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;3,648</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;2,036</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Drafts payable</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;12,526</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;18,065</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Accrued employee compensation</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;16,696</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;18,277</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Obligations under capital leases</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;639</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;1,068</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Accounts payable and accrued expenses</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;19,223</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;15,985</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Long-term debt</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;</B>35,862</U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;34,968</U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<B><FONT SIZE=2><P>&#9;Total Liabilities</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;442,748</B></U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;394,051</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER">Stockholders' Equity</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Preferred stock -- $1 par value; authorized 3,000,000 shares;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;none issued
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;- -  </FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;- -</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Common stock -- $0.15 par value; authorized 10,000,000 shares;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; issued 7,525,971 and 7,376,176 shares, respectively
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;1,129</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;1,107</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Additional paid-in capital</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;45,408</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;43,573</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Retained earnings</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;31,736</U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;24,546</U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;78,273</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;69,226</B></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>Less:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;Treasury stock, at cost, 276,425 and 724,055 shares, respectively</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;2,712</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;6,984</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;Unamortized expense of restricted stock awards
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      &#9;242</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">      &#9;370</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;Unearned employee stock ownership plan shares, at cost, 207,403 and <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;219,601 shares, respectively
</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>     <U>&#9;2,657</U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>      <U>&#9;2,813</U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<B><FONT SIZE=2><P>&#9;Total Stockholders' Equity</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;72,662</B></U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>&#9;  59,059</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP">
<B><FONT SIZE=2><P>&#9;&#9;Total Liabilities and Stockholders' Equity</B></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>$&#9;515,410</B></U></FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">      <U>$&#9;453,110</B></U></FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>See Notes to Consolidated Financial Statements.</P>
</FONT><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER"><A NAME="Statements_of_Operations"></A>STIFEL FINANCIAL CORP. AND SUBSIDIARIES</P>
<P ALIGN="CENTER"> CONSOLIDATED STATEMENTS OF OPERATIONS</P>
</B><FONT SIZE=3><P ALIGN="CENTER">(UNAUDITED)</P>
<P ALIGN="CENTER"> (In thousands, except per share amounts)</P>
<P ALIGN="CENTER"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=684>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="29%" VALIGN="TOP" COLSPAN=2>
<B><U><P ALIGN="CENTER">Three Months Ended</P>
<P ALIGN="CENTER">September 30, </B></U></TD>
<TD WIDTH="29%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">Nine Months Ended</P>
<P ALIGN="CENTER">September 30, </B></U></TD>
</TR>
</TABLE>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=5 WIDTH=682>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><U><P ALIGN="CENTER"> 2000</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">1999</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">2000</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><U><P ALIGN="CENTER"> 1999</B></U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<U><P>REVENUES</U></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Commissions</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">    $  20,114</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">    $  15,282</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">    $  65,489</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">    $  49,958</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Principal transactions</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;    7,034</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    6,319</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;  22,524</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;  18,741</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Investment banking</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;    4,774</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    2,507</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;  12,409</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    8,022</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Interest</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;    9,706</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    5,333</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;  26,677</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;  14,237</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Other</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>     7,026</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">     <U>     6,072</U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>   21,714</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">     <U>   19,407</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>   48,654</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>   35,513</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U> 148,813</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U> 110,365</B></U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<U><P>EXPENSES</U></TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Employee compensation and benefits</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">        27,823</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">        21,807</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">        87,821</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;  68,614</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Interest</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">          5,278</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    2,663</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;  15,313</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    6,735</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Occupancy and equipment rental</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;    3,781</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    2,900</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;  10,803</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    8,411</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Communications and office supplies</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;          2,744</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    2,254</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;    7,984</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    6,620</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Commissions and floor brokerage</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;       801</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;       650</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;    2,547</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;    2,099</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Other operating expenses</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;<U>    4,375</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">     <U>&#9;    3,066</U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>&#9;  11,547</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">     <U>&#9;    9,493</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;<U>  44,802</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>&#9;  33,340</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>&#9;136,015</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>&#9;101,972</B></U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"><DIR>
<B><P>Income before income taxes</DIR>
</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;    3,852</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;    2,173</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;  12,798</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">          8,393</B></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Provision for income taxes</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>     1,538</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">     <U>        742</U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">     <U>     4,742</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">     <U>     2,931</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"><DIR><DIR>
<B><P>&#9;&#9;Net income </DIR></DIR></B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;<U>$   2,314</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;<U>$   1,431</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;<U>$   8,056</B></U></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;<U>$   5,462</B></U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Net income per share:</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Basic</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;$    0.33</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;$    0.22</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;$   1.15</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;$    0.81</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Diluted</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;$    0.30</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;$    0.21</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;$   1.06</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;$    0.78</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Dividends declared per share</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;$    0.03</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;$    0.03</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">&#9;$   0.09</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;$    0.09</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Average common equivalent shares<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; outstanding:
</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Basic</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">          7,050</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">          6,570</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">          6,999</B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">   &#9;     6,712</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&#9;Diluted</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">          7,791 </B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">          6,878 </TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><P><P ALIGN="RIGHT">          7,612 </B></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P><P ALIGN="RIGHT">&#9;     7,013</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>
<FONT SIZE=2><P>See Notes to Consolidated Financial Statements.</P>
<B><P ALIGN="CENTER"><A NAME="Statements_of_Operations_2"><A NAME="Cash_Flow_1"></A></P>
</FONT><FONT FACE="Tms Rmn"><P ALIGN="CENTER"></P>
</FONT><FONT SIZE=3><P ALIGN="CENTER">STIFEL FINANCIAL CORP. AND SUBSIDIARIES</P>
<P ALIGN="CENTER"></A>CONSOLIDATED STATEMENTS OF CASH FLOWS</P>
</B><P ALIGN="CENTER">(UNAUDITED)(In thousands)</P>

<P ALIGN="CENTER"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=645>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="29%" VALIGN="TOP" COLSPAN=2>
<B><U><P ALIGN="CENTER">Nine Months Ended</P>
</TABLE>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=5 WIDTH=643>
<TR><TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><U><FONT SIZE=2><P ALIGN="RIGHT">September 30, 2000</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><U><FONT SIZE=2><P ALIGN="RIGHT">September 30, 1999</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<U><FONT SIZE=2><P>CASH FLOWS FROM OPERATING ACTIVITIES</U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>Net income </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;8,056</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;5,462</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<I><FONT SIZE=2><P>Noncash items included in earnings:</I></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;2,411</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;1,971</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Bonus notes amortization
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;1,877</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;1,316</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposition of assets
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(297)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(1,496)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Deferred items
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;54</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(163)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Amortization of restricted stock awards, units, <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  and stock benefits&nbsp;&nbsp;&nbsp;&nbsp;</P>
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2>
<P><P ALIGN="RIGHT">&#9;<BR><U>&#9;1,157</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT">&#9;<BR><U>&#9;297</U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;13,258</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;7,387</B></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>&#9;Decrease (increase) in assets:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Operating receivables
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(43,262)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(29,094)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Cash segregated for the exclusive benefit of customers
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(5)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(3)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Securities owned
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(1,113)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;11,349</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable from officers and employees
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(8,066)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(2,770)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP" HEIGHT=20>

<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Other assets
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(2,417)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(194)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;Increase (decrease) in liabilities:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Operating payables
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;17,351</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;35,863</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Securities sold, but not yet purchased
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;1,612</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;2,168</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">

<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Drafts payable, accrued employee compensation, and accounts <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payable and accrued expenses
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;<U>&#9;(5,301)</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2>
<P><P ALIGN="RIGHT"><BR>&#9;<U>&#9;(13,639)</U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P>Cash Flows From Operating Activities</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;(27,943)</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;11,067</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<U><FONT SIZE=2><P><A NAME="Cash_Flow_2"></A>CASH FLOWS FROM INVESTING ACTIVITIES</U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;Proceeds from:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Sale of property
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  -</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;15</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Cash received in acquisition of subsidiary
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;2,927</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  - </FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Sale of subsidiary
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  - </B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;4,744</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Sale of investments
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;465</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  - </FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;Payments for:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of office equipment and leasehold improvements
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(3,225)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(3,274)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of investments
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;(5,115)</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;(6,012)</U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P>Cash Flows From Investing Activities</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;(4,948)</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;(4,527)</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<U><FONT SIZE=2><P>CASH FLOWS FROM FINANCING ACTIVITIES</U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>Short-term borrowings, net
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;33,035</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(9,815)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;Proceeds from:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Issuance of stock
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;1,567</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;1,667</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Issuance of long-term debt
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  -</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;14,398</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;Payments for:</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Settlements of long-term debt
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(370)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  -</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of stock
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(1,475)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(4,984)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Repayment of note
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(1,500)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  -</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Principal payments under capital lease obligation
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(429)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(538)</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;(676)</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;(645)</U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P>Cash Flows From Financing Activities</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;30,152</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;83</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in cash and cash equivalents
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;(2,739)</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;6,623</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents - beginning of period
</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;16,861</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>&#9;12,835</U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<B><FONT SIZE=2><P>Cash and Cash Equivalents - end of period</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>$&#9;14,122</B></U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;<U>$&#9;19,458</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<U><FONT SIZE=2><P>Supplemental disclosure of cash flow information:</U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;&nbsp;&nbsp;&nbsp;&nbsp;Income tax payments</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;2,596</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;2,925</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;&nbsp;&nbsp;&nbsp;&nbsp;Interest payments</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;15,109</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;6,563</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<U><FONT SIZE=2><P>Schedule of noncash investing and financing activities:</U></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;&nbsp;&nbsp;&nbsp;&nbsp;Employee stock ownership plan </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;129</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;116</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;&nbsp;&nbsp;&nbsp;&nbsp;Fixed assets acquired under capital lease </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  -</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;924</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Hanifen, Imhoff Inc.</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;4,746</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;&#9;-  -</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT SIZE=2><P>&#9;&nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards and stock units, net of forfeitures</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<B><FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;2,066</B></FONT></TD>
<TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=2><P><P ALIGN="RIGHT">&#9;$&#9;499</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P>See Notes to Consolidated Financial Statements.</P>
</FONT><B><P ALIGN="CENTER"><A NAME="Notes"></A>STIFEL FINANCIAL CORP. AND SUBSIDIARIES</P>
<P ALIGN="CENTER">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">NOTE A - REPORTING POLICIES</P></DIR>
</DIR>

<U><P ALIGN="JUSTIFY">Basis of Presentation</P>
</B></U><P ALIGN="JUSTIFY"> The consolidated financial statements include the accounts of Stifel Financial Corp. and its subsidiaries (collectively referred to as the &quot;Company&quot;).  The accompanying unaudited consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.  Accordingly, they do not include all
of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating results for the three and nine months ended September 30, 2000 are not necessarily indicative of the results that may be expected for the year ending December 31, 2000.  For further
information, refer to the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1999.</P>
<P ALIGN="JUSTIFY">Where appropriate, prior year's financial information has been reclassified to conform with the current year presentation.</P>
<B><U><P ALIGN="JUSTIFY">Comprehensive Income</P>
</B></U><P ALIGN="JUSTIFY">The Company has no components of other comprehensive income, therefore comprehensive income equals net income.</P>
<B><P ALIGN="JUSTIFY">NOTE B - NET CAPITAL REQUIREMENT</P>
</B><P ALIGN="JUSTIFY">The Company's principal subsidiary, Stifel, Nicolaus &amp; Company, Incorporated (&quot;SN &amp; Co.&quot;), is subject to the Uniform Net Capital Rule 15c3-1 under the Securities Exchange Act of 1934, as amended (the &quot;
Rule&quot;), which requires the maintenance of minimum net capital, as defined. SN &amp; Co. has elected to use the alternative method permitted by the Rule which requires maintenance of minimum net capital equal to the greater of $250,000 or 2 percent of
aggregate debit items arising from customer transactions, as defined. The Rule also provides that equity capital may not be withdrawn and cash dividends may not be paid if resulting net capital would be less than 5 percent of aggregate debit items.</P>
<P ALIGN="JUSTIFY">At September 30, 2000, SN &amp; Co. had net capital of $37,153,800, which was 8.57% of its aggregate debit items, and $28,479,429 in excess of the minimum required net capital.</P>
<B><P ALIGN="JUSTIFY">NOTE C - SEGMENT REPORTING</P>
</B><P ALIGN="JUSTIFY">The Company's reportable segments include private client, capital markets, and other. The private client segment includes 67 branch offices and 118 independent contractor offices of the Company's broker-dealer subsidiaries located
throughout the U.S., primarily in the Midwest. These branches provide securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance, to their private clients. The capital markets segment includes
management and participation in underwritings (exclusive of sales credits, which are included in the private client segment), mergers and acquisitions, public finance, trading, research, and market making. Investment advisory fees and clearing income are
included in other.</P>
<P ALIGN="JUSTIFY">Intersegment revenues and charges are eliminated between segments. The Company evaluates the performance of its segments and allocates resources to them based on various factors, including prospects for growth, return on investment,
and return on revenues.</P>
<P ALIGN="JUSTIFY">Information concerning operations in these segments of business is as follows (in thousands):</P>
<P ALIGN="JUSTIFY"></P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=616>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><P>Three Months Ended September 30,</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">2000</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">1999</B></U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><U><P ALIGN="JUSTIFY">Revenues</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="JUSTIFY">Private Client</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=13>
<B><P ALIGN="RIGHT">$ 39,470</B></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=13>
<P ALIGN="RIGHT">$ 30,418</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Capital Markets</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">6,970</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">3,862</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Other</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">     2,214</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    1,233</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">&#9;Total Revenues</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">$ 48,654</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">$ 35,513</B></U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><U><P ALIGN="JUSTIFY">Operating Contribution</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Private Client</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$9,186</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$5,673</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Capital Markets</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">(122)</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">(822)</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Other</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT"> (1,108)</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    197</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><P>        Total Operating Contribution</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">   7,956</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT"> 5,048</B></U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Unallocated Overhead</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">(4,104)</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(2,875)</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">        Pre-Tax Income</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">$ 3,852</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">$ 2,173</B></U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><P>Nine Months Ended September 30,</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">2000</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">1999</B></U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><U><P ALIGN="JUSTIFY">Revenues</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Private Client</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$121,914</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 92,481</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Capital Markets</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">21,908</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">12,516</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Other</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">     4,991</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">     5,368</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">&#9;Total Revenues</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">$148,654</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">$110,365</B></U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><U><P ALIGN="JUSTIFY">Operating Contribution</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Private Client</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$25,387</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$16,430</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Capital Markets</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">730</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">(860)</TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Other</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT"> (1,062)</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">  2,441</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><P>       Total Operating Contribution</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">25,055</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">18,011</B></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Unallocated Overhead</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">(12,257)</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="RIGHT">(9,618)</U></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">       Pre-Tax Income</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">$ 12,798</B></U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><U><P ALIGN="RIGHT">$ 8,393</B></U></TD>
</TR>
</TABLE>
</B><P ALIGN="JUSTIFY">The Company has not disclosed asset information by segment, as the information is not produced internally and its preparation is impracticable.</P>
<B><P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">NOTE D - EARNINGS PER SHARE (&quot;EPS&quot;)</P>
</B><P ALIGN="JUSTIFY">Basic EPS is calculated by dividing net income by the weighted-average number of common shares outstanding. Diluted EPS is similar to basic EPS but adjusts for the effect of potential common shares.</P>
<P ALIGN="JUSTIFY"> The components of the basic and diluted earnings per share calculation for the three and nine months ended September 30, are as follows (in thousands, except per share amounts): </P>
<P ALIGN="JUSTIFY"></P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=800>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">&#9;Three Months Ended September 30,</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">2000</B></U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">1999</B></U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><I><U><P ALIGN="JUSTIFY">Income Available to Common Stockholders</B></I></U></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">Net Income</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 2,314</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 1,431</B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=6><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><I><U><P ALIGN="JUSTIFY">Weighted Average Shares Outstanding</B></I></U></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">Basic Weighted Average Shares Outstanding:</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">7,050</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">6,570</B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>Potential Common Shares From Employee Benefit Plans</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">     741</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">308</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>&nbsp;&nbsp;&nbsp;&nbsp;Diluted Weighted Average Shares Outstanding
</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">  7,791</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">6,878</B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=6><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Basic Earnings Per Share
</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT"> $ 0.33</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 0.22</B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Diluted Earnings Per Share
</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT"> $ 0.30</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 0.21</B></TD>
</TR>
</TABLE>

<B><P ALIGN="JUSTIFY"></P></B>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=800>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">&#9;Nine Months Ended September 30,</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">2000</B></U></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">1999</B></U></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><I><U><P ALIGN="JUSTIFY">Income Available to Common Stockholders</B></I></U></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">Net Income</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 8,056</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 5,462</B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=6><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><I><U><P ALIGN="JUSTIFY">Weighted Average Shares Outstanding</B></I></U></TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY">Basic Weighted Average Shares Outstanding:</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">6,999</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">6,712</B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>Potential Common Shares From Employee Benefit Plans
</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">613</TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT">301</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>&nbsp;&nbsp;&nbsp;&nbsp;Diluted Weighted Average Shares Outstanding
</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">7,612</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">7,013</B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=6><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Basic Earnings Per Share
</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 1.15</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 0.81</B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<B><P>Diluted Earnings Per Share
</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 1.06</B></TD>
<TD WIDTH="17%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 0.78</B></TD>
</TR>
</TABLE>
<FONT SIZE=2>
<P></P></FONT></BODY>
<B><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">NOTE E - MERGER</P>
</B><P ALIGN="JUSTIFY">       On January 12, 2000, the Company completed the merger of Hanifen, Imhoff Inc. (&quot;HII&quot;), a Denver-based investment banking firm. The transaction has been accounted for as a purchase and provides for a tax-free
exchange of 516,984 shares of the Company's stock (valued at $4,745,913) for all of the outstanding shares of HII. The purchase price has been allocated to net tangible and intangible assets acquired based on their estimated fair market values. The
remaining purchase price of $3.8 million has been recorded as goodwill, which will be amortized over 25 years. The exchange ratio was calculated using the respective book values of the Company and HII. The total shares issued in the transaction were based
upon the final closing equity of HII at December 31, 1999. In connection with the transaction, certain key associates of HII executed employment agreements containing non-compete provisions and restrictions on the sale of the stock received in the merger
and were awarded options in the Company. The merger added 54 investment bankers, research analysts, institutional sales associates, and traders to the capital markets segment, as well as 24 administrative and technical support associates. </P>
<P ALIGN="JUSTIFY">The following is unaudited pro forma financial data for the combined operations, assuming the transaction had taken place on January 1, 1999. </P>
<P ALIGN="JUSTIFY"></P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="61%" VALIGN="TOP">
<B><P>Three Months Ended September 30,<BR>
</B><I> (in thousands, except per share amounts)</I></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="CENTER">2000</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="CENTER">1999</B></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Revenues</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 48,654</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 38,990</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net income</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 2,314</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 1,201</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Diluted earnings per share</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 0.30</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 0.16</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Diluted weighted average shares outstanding</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">7,791</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">7,442</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<B><P>Nine Months Ended September 30,</B><I> <BR>
 (in thousands, except per share amounts)</I></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="CENTER">2000</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="CENTER">1999</B></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Revenues</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 149,042</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 122,408</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Net income</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 7,370</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 5,042</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Diluted earnings per share</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">$ 0.96</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 0.67</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Diluted weighted average shares outstanding</TD>
<TD WIDTH="20%" VALIGN="TOP">
<B><P ALIGN="RIGHT">7,646</B></TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">7,530</TD>
</TR>
</TABLE>
<P><P ALIGN="JUSTIFY">The above pro forma statements do not purport to be indicative of the results, which actually would have occurred had the acquisition been made on January 1, 1999.</P>

<B><P ALIGN="JUSTIFY">NOTE F - SUBSEQUENT EVENTS</P>
</B><P ALIGN="JUSTIFY">On October 25, 2000, the Company's Board of Directors declared a regular quarterly cash dividend of $0.03 per share, payable on November 22, 2000 to stockholders of record as of the close of business on November 8, 2000.</P>
<FONT SIZE=5><P ALIGN="CENTER">******</P>
<B><U><P ALIGN="JUSTIFY"></P>
</FONT><FONT SIZE=4><P ALIGN="JUSTIFY"><A NAME="MDA"></A>Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</P>
<P>Results of Operations</P>
</B></U></FONT><P>The following table summarizes the changes in the major categories of revenue and expense for </P>
<P>the three and n<FONT FACE="Tms Rmn">ine months ended September 2000 as compared to September 1999.</P>
</FONT><P> </P>
<TABLE BORDER CELLSPACING=2 CELLPADDING=2 WIDTH=577>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#ffffff" HEIGHT=18>
<B><FONT SIZE=2><P ALIGN="CENTER">Increase / (Decrease)</B></FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#ffffff" HEIGHT=18>
<B><U><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></U></FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#ffffff" HEIGHT=18>
<B><FONT SIZE=2><P ALIGN="CENTER"></P>
<U><P ALIGN="CENTER">Nine Months Ended</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=2><P ALIGN="CENTER">(Dollars in thousands)</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=20>
<B><U><FONT SIZE=2><P ALIGN="CENTER">Amount</B></U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=20>
<B><U><FONT SIZE=2><P ALIGN="CENTER">Percentage</B></U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=20>
<B><U><FONT SIZE=2><P ALIGN="CENTER">Amount</B></U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=20>
<B><U><FONT SIZE=2><P ALIGN="CENTER">Percentage</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<B><U><FONT SIZE=2><P>REVENUES:</B></U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Commissions</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT"> $      4,832 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">32%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT"> $    15,531 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">31%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Principal transactions</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">           715 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">11%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         3,783 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">20%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Investment banking</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         2,267 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">90%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         4,387 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">55%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Interest</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         4,373 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">82%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">       12,440 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">87%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Other</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">           954 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">16%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         2,307 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">12%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<B><FONT SIZE=2><P ALIGN="RIGHT">13,141</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">37%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<B><FONT SIZE=2><P ALIGN="RIGHT">38,448</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">35%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<B><U><FONT SIZE=2><P>EXPENSES:</B></U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Employee compensation and benefits</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         6,016 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">28%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">       19,207 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">28%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Communications and office supplies</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">           490 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">22%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         1,364 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">21%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Occupancy and equipment rental</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">           881 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">30%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         2,392 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">28%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Interest</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         2,615 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">98%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         8,578 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">127%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Commissions and floor brokerage</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">           151 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">23%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">           448 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">21%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Other operating expenses</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         1,309 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">43%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">         2,054 </FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">22%</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<B><FONT SIZE=2><P ALIGN="RIGHT">11,462</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">34%</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<B><FONT SIZE=2><P ALIGN="RIGHT">34,043</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">33%</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
</FONT><B><I><P ALIGN="JUSTIFY">Nine months ended September 2000 as compared to nine months ended September 1999</P>
</B></I><P ALIGN="JUSTIFY">The Company recorded net earnings of $8.1 million or $1.06 per diluted share on total revenues of $148.8 million for the nine months ended September 30, 2000 compared to net earnings of $5.5 million or $0.78 per diluted share
on total revenues of $110.4 million for the same period one year earlier.</P>
<P ALIGN="JUSTIFY">The Company's continued expansion of its Private Client Group, which began in 1998, was evident during the first nine months of 2000 when compared to the same period one year earlier.  The Company opened 12 private client branch
offices, and added 112 investment executives, and 30 independent contractors. Despite the volatility in the market place, investor demand for equity products remained strong as evidenced by the increased trading volumes on the two major stock exchanges.
Trading volumes on the New York Stock Exchange (&quot;NYSE&quot;) and NASDAQ from September 30, 1999 to September 30, 2000, increased 27% and 60%, respectively, which contributed to a 56% increase in the number of customer trades by the Company.
Additionally, the merger of HII contributed to increased revenue production, most significantly in principal transactions and investment banking, which primarily consists of corporate finance advisory fees. </P>
<P ALIGN="JUSTIFY">Fueled by the Company's continued expansion, low inflation and strong markets, all categories of revenues increased contributing to a total revenue increase of $38.4 million (35%). </P>
<P ALIGN="JUSTIFY">Commission revenues rose due to private client expansion and increased trading volumes as referred to above. The main components of the increase were from sales of over-the-counter equities, listed options, insurance products, and
mutual funds.</P>
<P ALIGN="JUSTIFY">Revenues from principal transactions increased primarily due to the addition of HII, the increased sales of unit trusts and increased sales of nontaxable fixed income products principally in the first half of the year when higher
interest rates made these investments more attractive. </P>
<P ALIGN="JUSTIFY">     Investment banking revenues increased due to an increase in corporate finance advisory fees, and municipal underwriting fees.</P>
<P ALIGN="JUSTIFY">Interest revenues rose as a result of a 28% increase in the number of margin accounts with a 63% increase in average borrowings by customers, combined with increases in the rates charged to those customers.</P>
<P ALIGN="JUSTIFY">Other revenues increased principally due to growth in managed account fees, which increased due to a 47 % increase in the average number of accounts and an 8% increase in the average total assets in these programs, unrealized gains
recorded by a non-broker dealer subsidiary of the Company and receipts of death benefit proceeds from insurance policies.  This increase was partially offset by a decrease in investment advisory fees due to the sale of Todd Investment Advisors and the
gain recorded on the sale of Todd in the second quarter of 1999.&#9;</P>
<P ALIGN="JUSTIFY">Total expenses increased $34.0 million (33%). All expense categories increased over the same period one-year earlier due to the continued expansion of the private client group and the merger of HII unless explained otherwise. </P>
<P ALIGN="JUSTIFY">Employee compensation and benefits, a significant portion of the Company's total expense, increased $19.2 million (28%) in the first nine months of 2000. The increase in the variable component of compensation of $15.0 million (30%)
grew in conjunction with increases in revenues and profitability. The increase in the fixed component of compensation of $4.2 million (22%) essentially resulted from increased employment due to the private client group expansion and the merger of HII.</P>
<P ALIGN="JUSTIFY">Commission and floor brokerage, communications and office supplies, and occupancy and equipment rental increased $4.2 million (25%) as a result of higher business volume, continued branch office expansion, and increased expenditures on
technology. </P>
<P ALIGN="JUSTIFY"> Interest expense rose due to increased borrowings by the Company to finance customer margin accounts, combined with increases in the rates paid on those borrowings.</P>
<P ALIGN="JUSTIFY">Other operating expenses increased principally due to increased employment recruiting fees in conjunction with increased advertising and travel and promotional expenses resulting from private client group expansion and the merger of HII.
 </P>
<B><I><P ALIGN="JUSTIFY">Three months ended September 2000 as compared to three months ended September 1999</P>
</B></I><P ALIGN="JUSTIFY">The Company recorded net earnings of $2.3 million or $0.30 per diluted share on total revenues of $48.7 million for the third quarter ended September 30, 2000 compared to net earnings of $1.4 million or $0.21 per diluted share
on total revenues of $35.5 million for the same period one year earlier. The explanation of revenue and expense fluctuations presented for the nine-month period are generally applicable to the three-month operations.</P>
<P ALIGN="JUSTIFY">     </P>
<B><U><FONT FACE="Tms Rmn" SIZE=4><P ALIGN="JUSTIFY">Liquidity and Capital Resources</P>
</B></U></FONT><P ALIGN="JUSTIFY">The majority of the Company's assets are highly liquid, consisting mainly of cash or assets readily convertible into cash. These assets are financed primarily by the Company's equity capital, customer credit balances,
short-term bank loans, proceeds from securities lending, long term notes payable, and other payables. Changes in securities market volumes, related customer borrowing demands, underwriting activity, and levels of securities inventory affect the amount of
the Company's financing requirements. </P>
<P ALIGN="JUSTIFY">During the first nine months of 2000, the Company repurchased 144,124 shares, using existing board authorizations, at an average price of $10.23 per share, to meet obligations under the Company's employee benefit plans. </P>
<P ALIGN="JUSTIFY">On January 12, 2000 the Company completed the merger of HII, a Denver-based investment banking firm. The merger was completed with the tax-free exchange of 516,984 shares of the Company for all of the outstanding shares of HII.</P>
<P ALIGN="JUSTIFY">Management believes the funds from operations, available informal short-term credit arrangements, and long-term borrowings, at September 30, 2000, will provide sufficient resources to meet the present and anticipated financing needs.</P>

<P ALIGN="JUSTIFY">Stifel, Nicolaus &amp; Company, Incorporated, the Company's principal broker-dealer subsidiary, is subject to certain requirements of the Securities and Exchange Commission with regard to liquidity and capital requirements. At
September 30, 2000, Stifel, Nicolaus had net capital of approximately $37.2 million which exceeded the minimum net capital requirements by approximately $28.5 million.</P>
<P ALIGN="JUSTIFY"></P>
<B><U><FONT FACE="Tms Rmn" SIZE=4><P ALIGN="JUSTIFY">Forward-Looking Statements</P>
</B></U></FONT>
<P ALIGN="JUSTIFY">The Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of federal securities laws. Actual results are subject to risks and uncertainties,
including both those specific to the Company and those specific to the industry which could cause results to differ materially from those contemplated. The risks and uncertainties include, but are not limited to, general economic conditions, actions of
competitors, regulatory actions, changes in legislation and technology changes. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this Quarterly Report. The Company does not undertake any obligation
to publicly update any forward-looking statements.</P>
<P ALIGN="JUSTIFY">     </P>

<B><U><FONT SIZE=4><P ALIGN="LEFT"><A NAME="PartI_Item3">Item 3. Quantitative and Qualitative Disclosure about Market Risk</P></DIR>


</B></U></FONT><P ALIGN="JUSTIFY"></A>&#9;There have been no material changes from the information provided in the Company's Annual Report on Form 10-K for the year ended December 31, 1999.</P>
<B><FONT SIZE=4>
</B></FONT><FONT FACE="Tms Rmn"><P>&nbsp;</P>
</FONT><B><FONT SIZE=4><P>&nbsp;</P>
<P>PART II. OTHER INFORMATION</P>
</B></FONT>
<B><U><P><A NAME="Item1">Item 1. Legal Proceedings</P>
</B></U><P ALIGN="JUSTIFY"></A>There have been no material changes, except as reported in Item 6(b) &quot;Report on Form 8-K,&quot; in the legal proceedings previously reported in the Company's Annual Report on Form 10-K for the year ended December 31,
1999. Such information is hereby incorporated by reference.</P>
<B><U><P ALIGN="JUSTIFY"><A NAME="Item6"></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Item 6. Exhibit(s) and Report(s) on Form 8-K</P></B></U>
<OL START=1 TYPE="a">
<P ALIGN="JUSTIFY"></A><LI> Exhibit No. (Reference to Item 601(b)of Regulation S-K) 27 Financial Data Schedule&#9;<I>&#9;&#9;&#9;(furnished to the Securities and Exchange Commission for Electronic Data Gathering, Analysis, and Retrieval [EDGAR] purposes
only)</P>
</I><P ALIGN="JUSTIFY"><LI>Report(s) on Form 8-K</LI></P></OL>
<DIR>

<P ALIGN="JUSTIFY">There were no reports on Form 8-K filed during the quarter ended September 30, 2000. </P></DIR>

<B><U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER"><A NAME="Signatures"></A>SIGNATURES</P>
</B></U>
<U><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</U><P ALIGN="JUSTIFY">Pursuant to the requirement of Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="50%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER">STIFEL FINANCIAL CORP.</P>
<P ALIGN="CENTER">(Registrant)</P>
</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Date: November 14, 2000</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="JUSTIFY">By <U>&#9;/s/ Ronald J. Kruszewski     &#9;</P>
</U><P>Ronald J. Kruszewski <BR>
(President and Chief Executive Officer)</P>
</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="JUSTIFY">Date: November 14, 2000</TD>
<TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="JUSTIFY">By <U>&#9;/s/ James M. Zemlyak      &#9;</P>
</U><P>James M. Zemlyak <BR>
(Principal Financial and Accounting Officer)</P>
</TD>
</TR>
</TABLE>






<B><U><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>

<B><FONT SIZE=4><P ALIGN="CENTER">STIFEL FINANCIAL CORP. AND SUBSIDIARIES</P>
</FONT><FONT SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">EXHIBIT INDEX</P>
</FONT><FONT SIZE=4><P ALIGN="CENTER">September 30, 2000</P>
</B></FONT><U><FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></U></FONT>
<TABLE BORDER CELLSPACING=0 CELLPADDING=7 WIDTH=700>
<TR><TD WIDTH="50%" VALIGN="BOTTOM">
<FONT SIZE=3><P ALIGN="CENTER"><U>Exhibit Number</U></FONT></TD>
<TD WIDTH="50%" VALIGN="BOTTOM">
<U><FONT SIZE=3><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Description</U></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">27</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="CENTER">Financial Data Schedule
<BR>(furnished to the Securities and Exchange
<BR>Commission for Electronic Data
<BR>Gathering, Analysis, and Retrieval
<BR>[EDGAR] purposes only)</I></FONT></TD>
</TR>
</TABLE>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-27
<SEQUENCE>2
<FILENAME>r10q-273.xfd
<DESCRIPTION>EXHIBIT 27. SCHEDULE BD
<TEXT>

<TABLE> <S> <C>

<ARTICLE>    BD
<LEGEND>    THIS  SCHEDULE  CONTAINS SUMMARY FINANCIAL INFORMATION  EXTRACTED
FROM  THE  CONSOLIDATED  STATEMENT OF FINANCIAL  CONDITION  DATED SEPTEMBER 30,
2000 AND THE STATEMENT OF OPERATIONS FOR  THE  NINE MONTHS  ENDED SEPTEMBER 30,
2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>    1,000

<S>                                                      <C>
<PERIOD-TYPE>                                          9-MOS
<PERIOD-START>                                   Jan-01-2000
<FISCAL-YEAR-END>                                Dec-31-2000
<PERIOD-END>                                     Sep-30-2000
<CASH>                                                14,308
<RECEIVABLES>                                        389,129
<SECURITIES-RESALE>                                        0
<SECURITIES-BORROWED>                                 23,619
<INSTRUMENTS-OWNED>                                   29,803
<PP&E>                                                 8,595
<TOTAL-ASSETS>                                       515,410
<SHORT-TERM>                                         156,100
<PAYABLES>                                            81,136
<REPOS-SOLD>                                               0
<SECURITIES-LOANED>                                  166,002
<INSTRUMENTS-SOLD>                                     3,648
<LONG-TERM>                                           35,864
<PREFERRED-MANDATORY>                                      0
<PREFERRED>                                                0
<COMMON>                                               1,129
<OTHER-SE>                                            71,533
<TOTAL-LIABILITY-AND-EQUITY>                         515,410
<TRADING-REVENUE>                                     23,700
<INTEREST-DIVIDENDS>                                  26,677
<COMMISSIONS>                                         65,489
<INVESTMENT-BANKING-REVENUES>                         11,231
<FEE-REVENUE>                                            797
<INTEREST-EXPENSE>                                    15,313
<COMPENSATION>                                        87,821
<INCOME-PRETAX>                                       12,798
<INCOME-PRE-EXTRAORDINARY>                            12,798
<EXTRAORDINARY>                                            0
<CHANGES>                                                  0
<NET-INCOME>                                           8,056
<EPS-BASIC>                                             1.15
<EPS-DILUTED>                                           1.06


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