Good afternoon. My name is Mike and I will be your conference operator today. At this time I would like to welcome everyone to the third quarter earnings call 2013 for Stifel Financial. All lines have been placed on mute to prevent any background noise. After the speakers remarks there will be a question-and-answer session. (Operator Instructions) Thank you. I will now turn the call over to Jim Zemlyak. You may begin your conference.

Thank you, Mike. Good afternoon. This is Jim Zemlyak, CFO of Stifel Financial. I would like to welcome everyone to our conference call today to discuss our third quarter 2013 financial results. Please note that this conference call is being recorded. If you’d like a copy of today’s presentation you may download slides from our website at www.stifel.com. Before we begin today’s call, I’d like to remind listeners that this presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not statements of fact or guarantees of performance. They may include statements regarding among other things, our ability to successfully integrate acquired companies or branch offices and financial advisors, general economic, political, regulatory market conditions, the investment banking and brokerage industries, our objectives and results and also may include our belief regarding the effect of various legal proceedings and management’s expectations, our liquidity and funding sources, counterparty credit risks or similar matters. As such they are subject to risks, uncertainties and other factors that may cause actual future results to differ materially from those discussed in the statements. To supplement our financial statements presented in accordance with GAAP, we may use certain non-GAAP measures of financial performance and liquidity. These non-GAAP measures should only be considered together with the company’s GAAP results. To the extent we discuss non-GAAP measures, the reconciliation to GAAP is available on our website at www.sifel.com. And finally, for a discussion of risks and uncertainties in our business, please see the business factors affecting the company and the financial services industry in the company’s Annual Report on Form 10-K and MD&A of results and the company’s quarterly reports on Form 10-Q. I will now turn the call over to our Chairman, CEO and President of Stifel, Ron Kruszewski.

Thank you, Jim. Welcome everyone and thank you for joining us on our call. I’d like to start with an overview of the market. I’ll say this a couple of times. The results primarily were impacted by the fact that client activity was muted during the summer months. I want to underscore that by the following statistics and all of these are as compared to the second quarter of 2013. Equity average daily volumes were down 13%, corporate bond average daily volumes down 15%, U.S equity capital markets in terms of proceeds raised down 20% and muni bond debt capital markets business was down 23%. So as you can see, certainly as compared to the second quarter, the third quarter in terms of client activity was certainly tepid at best. That provides the foundation for my comments in our press release which stated that despite the fact that the industry reflected muted client activity during the summer months, we are pleased with our third quarter results. Year over year, revenues are up 19% and core net income from continuing operations is up 18%, both reflecting the strength of our balanced business model. We have a very encouraging start to our fourth quarter. We remain focused on serving our clients and are well positioned to capitalize on the opportunities ahead. So turning to our financial results for the quarter, net revenues for the quarter were $478 million, which represents a 16% increase over the prior year’s quarter. Earnings per share from continuing operations totaled $1 per diluted share and after discontinued operations earnings per share was $0.93 per diluted share. From a financial viewpoint, we had a noisy quarter. Items which impact our results included merger related expenses, a loss from discontinued operations and a significant U.S tax benefit. These items…

(Operator Instructions) Your first question is from Patrick O'Shaughnessy with Raymond James. Your line is open. Patrick O'Shaughnessy – Raymond James & Associates: My first question is on Stifel Bank. To get to your targeted 50-50 mix between loans and securities, do you envision more deals like the Acacia deal? Or do you plan on just organically growing Stifel Bank's assets by sourcing loans to your Global Wealth Management clients? And if it is the latter, how do you accelerate the growth of your loans to the Global Wealth Management clients?

I would say our goal is to organically grow and we will do that by just continuing to build our capabilities. When it just goes to how we built the bank, it was easier to build the bank on the investment side versus the loan side. We’ve been continuing to build our loan, our [region] capabilities. We just want to do so prudently. That’s a business we’ve got to be careful about from a credit perspective. The goal is to increase our loans as a percentage of total assets and we’ll do so. And our primary way to do that will be organically, although I’m not going to sneeze at the transaction we just did because it was financially a very attractive transaction. Patrick O'Shaughnessy – Raymond James & Associates: Is there anything specific you can do in terms of training your advisors to try to encourage them to source loans to their clients?

Sure. There’s a number of things that we can do. Again as I’ve always said Patrick our goal is to grow our loan i.e. our credit book prudently and we’ll do so with prudence. And that loan growth has been accelerating and it will continue to accelerate, but I don’t have any targets. Patrick O'Shaughnessy – Raymond James & Associates: I appreciate that. Then my follow-up question, at this point can you maybe just recap what your asset management strategy is? Obviously you did the deal that closed after the quarter -- or you announced after the quarter it’s going to close in November. But can you just give a high-level view of what your asset management strategy is at this point?

Look, we have a number of asset management units, many of which we have gotten through our mergers. We have a billion dollar small cap manager that’s doing exceptionally well and growing. We have internally managed programs that have in excess of $1 billion. We have large cap. We have a traditional asset management group that has performance [chamber] compliance in businesses that we’re marketing. They’ve been pretty – they’ve been more individual units and we’re going to pull them together and put them on an umbrella and have – and drive some of the synergies that come out of things that you can do in terms of marketing, not investment process but other back-office synergies. So we’ve always liked the asset management business. We just haven’t liked the return on investment of being in those businesses from an acquisition perspective. So we’ll continue to build that and I believe the future is going to present some opportunities for us in that business.

Your next question is from Devin Ryan with JMP Securities. Your line is open. Devin Ryan – JMP Securities: So in the fixed-income business, last quarter you had about $0.08 of, I think, trading-related losses. So just want to see if it is reasonable to assume that the base was admittedly higher this quarter. I am assuming that didn't recur. And then just with respect to Knight, you mentioned in your remarks that revenues were in line with expectations. So I’m assuming you're not referring to the fully ramped $70 million to $100 million run rate. I guess if that’s true, any sense of where that business is and a timeline to getting to fully ramped?

Let me answer your question. I’ll be a little less – I’ll try to provide a little more color. I don’t want to really give the number, but it was within our range. It would be fully ramped. I’m pleased with how they’ve started. So, on an annualized basis it would be within my expectation if that answers your question. What I would say is that the overall business I think you see in the Street, our fixed income does not – we did not experience a loss. But that business was also impacted by the slow client activity masked by the additional business that we got from Knight. So I think our institutional business in general faced a tough environment in the third quarter which dovetails back to my remarks where I believe that our overall revenue in that business is not a run rate. Devin Ryan – JMP Securities: Helpful. And then just coming back to the thought of increasing leverage at the parent to maybe more in line with some of your peers, which you have spoken about; and then using that to expand the Bank's balance sheet, I guess obviously expanding the loan portfolio is one of the stated goals, and then that will happen over time, but that is maybe a little bit slower process. How fast can you increase the securities portfolio? Or how fast can you do it that you are comfortable with, I guess, increasing it?

It’s a good question. I think we want to – we look at things in terms of ROE hurdles. We’re not -- obviously there’s two ways to deal with your leverage ratio. One is to increase assets. Two is to buy back shares, deal with the denominator of that. So we believe that the -- right now we believe the way we want to do this is increase the assets where we do it prudently and as quick as we can subject to achieving an acceptable return on equity on incremental capital. So how fast – look I don’t like ever growing a bank too fast in any metrics. I think you’re making of that at the current credit cycle and the current interest rate curve. And so we’ll continue to do so. I recognize the challenge of leveraging this. I just want to point out that we know that and we have runway in our leverage ratio to support growth. That’s really my point. I think on a comparative basis you should be looking at our ability to grow without dilution and the earnings that is associated with that. Devin Ryan – JMP Securities: Just lastly you mentioned in your remarks and I think it’s pretty clear from the industry data, equity issuance has been very strong quarter to date. Stifel has clearly been participating in that. is there anything that you’re seeing that could change the pace? Does it feel like we’re just seeing a pent up phenomenon just of deals that maybe weren't able to occur in the third quarter? Just any sense of how strong it maybe has been and expectations for the foreseeable future in that business?

I think it’s been, business has been robust. So I guess that in the past periods like this have not been that long lived. And so probably I’m cautious because of the last few years. That said, we revised GDP growth up to 2.8% this year. You don’t see significant said policy changes. I don’t see any real -- hopefully nothing in Washington, the normal things that can curtail issuance. So I certainly believe that there’s a lot to be done and a lot of people are looking to get it done. I expect this quarter to remain relatively robust absent some external event. I think valuations are reasonable and things are getting done. I’m really not going to project anything into ’14 since I can’t see that forward. But from the tramline of the last few years, I think overall everything being equal, ’14 will be a better year.

Your next question is from Chris Harris with Wells Fargo Your line is open. Chris Harris – Wells Fargo Securities: Just to follow up on that last point on ISG, maybe to help us frame up how good October was, maybe you guys don't have this information, but if you were to run-rate October for the full quarter, what could we be looking at in terms of revenues?

Chris, no. Chris Harris – Wells Fargo Securities: All right. Thought I’d ask.

That’s all right. I appreciate it. Chris Harris – Wells Fargo Securities: So maybe switching gears a little bit, talking about the cost side of the equation. Ron, you did mention that target for you is to get the non-comp down to 21% of revenue. Curious if you maybe can expand on that a little bit for us. What areas do you think you could potentially wring out additional expense saves? And what timeline do you think you might be thinking about?

I think it’s been – I would think that we are self-rate on this is that our ability to do mergers and integrate and maximize revenue has been very good. And part of that has been that we tend to be less strong on the cutting board of expenses. We try to bring things together nicely and that works. So what’s happened is that that just keeps compounding itself. And as I look at it, to answer your question is that 24% non-comp to revenue is maybe half to get to my goal of probably half just generating revenues for what we think. We don’t think this is a typical revenue quarter, the third quarter. But the other half is in stringent cost controls. We need to now be going and looking at some of our overlaps in occupancy. There’s a lot of areas in communications. There’s a number of things that are duplicative of the 17 deals that we’ve done. I think we’ve done a good job, but I will not live with 24% comp to revenue -- I’m sorry, non-comp to revenue because that almost by definition will not allow us to achieve our goal of 15% pretax margin. So it’s work to do, but we have a plan if that answers your question. Chris Harris – Wells Fargo Securities: Okay. No, excellent. It does. Then last question for me. There has been a few other questions on the Bank already; I will try to maybe ask in a different way. If you grow your Bank materially from here, I am just wondering how you feel about the team that you have got at the Bank today. Do you feel like you need more bodies there to handle perhaps the higher rate of loan growth you might be getting? Or do you feel pretty good about the infrastructure you’ve got in place?

Look, I have a great team, an absolutely great team. But to both to deal with the volume of business and to do so prudently and frankly to deal with the increased regulatory burden that occurs as you grow larger and you cross certain thresholds, we will be adding to our already talented team. But again we’ve run the bank at very efficient ratios and high ROEs and that doesn’t have to change. But we’re not going to materially expand our return on assets by growing because you have to add people and capabilities as you do that. and the regulatory burdens are not insignificant.

(Operator Instructions). The next question comes from Douglas Sipkin with Susquehanna. Your line is open. Douglas Sipkin – Susquehanna Financial Group: I just had two questions. One first, relating to municipals, I think it has been addressed a little bit. But maybe trying to think about it from a different perspective, I think you indicated last quarter it was a trading loss which maybe took away $0.06, $0.07, $0.08, something like that. Just checking on some of your competitors; obviously there was a sharp snapback. I am just wondering if you could categorize if you had any significant trading gains from municipals this quarter, comparative to the big loss you had last quarter. That was just my first question.

I would say that I wouldn’t say that it was a snapback. I would say that we reported our loss last quarter in many ways [indiscernible] normal and not just the absolute loss. So I would say that even last quarter our trading process compared to our run rate was below normal, but it was not as significant as it was in June. So did we see a significant or was it like – did we reverse some previously book? Sure, we did some but nothing worth talking about if that answers your question. Douglas Sipkin – Susquehanna Financial Group: Okay, no, that is helpful. Then secondly, just drilling down a little bit on the Bank, I'm just trying to understand. I know the pickup in the non-performers, I guess it’s the first of the kind for you guys. And I guess as a percentage of the total assets it’s not too big of a deal. But I guess if you look at it more on a percentage of commercial loans, and you take out the resi-s because I think that’s where the jump was, it’s about 3%. And it’s surprising considering how good credit has been for regional banks in the United States for some time now. So I’m just wondering -- it’s just strange. Was there one unique event there?

Yeah. I think I said on the call. It’s one loan. It was one loan. We think we understand it. We think we have our arms around it. But it went non-performing. When you start with zero non-performers and you add one, in this case it was a $14 million relationship, it does look significant, but I don’t believe it’s a trend. It’s not like a whole bunch of one. It’s one relationship. So I believe -- I certainly would not extrapolate a trend onto that tag. I know what long relationship is. That said, I wouldn’t also expect that we’re going to have zero non-performers which is what we’ve had. So we’re going to see an increase in non-performers and we’re going to see increases in our net interest margins. And we believe that net-net our increase in NIM minus our credit is going to be greater than where we’ve been doing investments. But if you’re going to be doing C&I loans, you’re going to run into non-performers. Douglas Sipkin – Susquehanna Financial Group: Okay, great. No, that is helpful. Thank you for all of the color, particularly on the fixed income.

No problem.

There are no further questions. I will turn the call back over to the presenters.

Okay. I will again thank everyone for their time. I would look forward to reporting to you on hopefully a quarter where business continues at paces it has for the first half of the quarter. Thank you very much and take care.

This concludes today’s conference call. You may now disconnect.