Administrative Committee and Trustees
Stifel, Nicolaus Profit Sharing 401(k) Plan
St. Louis, Missouri

We have audited the accompanying statements of net assets available for benefits of Stifel, Nicolaus Profit Sharing 401(k) Plan (the "Plan") as of December 31, 2003, and the related statements of changes in net assets available for benefits for the year then ended.  These financial statements are the responsibility of the Plan's management.  Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2003, and the changes in net assets available for benefits for the year then ended in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

St. Louis, Missouri
June 25, 2004

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Stifel, Nicolaus Profit Sharing 401(k) Plan

1. Description of the Plan

The following description of the Stifel, Nicolaus Profit Sharing 401(k) Plan (the "Plan") provides only general information. Participants should refer to the Summary Plan Description for a more complete description of the Plan's provisions, which is available from the plan administrator.

General

The Plan is a defined contribution plan covering all employees of Stifel, Nicolaus & Company, Incorporated (the "Company") and affiliates who meet the eligibility provisions of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

Contributions

Each year, the Company contributes a percentage of eligible participant contributions as determined by the Company's Board of Directors. For the years ended December 31, 2004 and 2003, the Board elected to match 50% of the first $1,000 contributed by the participant.

In addition, each year the Company may make a discretionary contribution based on profitability. Discretionary contributions are allocated to the participants employed on the last day of the Plan year on the basis of participants' compensation. There were no discretionary contributions in 2004 or 2003.

Participants may contribute an amount from 1% to 100% of their eligible compensation in increments of 1%. Contributions are subject to certain limitations. Participants direct the investment of their contributions as well as the Company's contribution into various investment options offered by the Plan. The Plan currently offers fifteen pooled separate accounts, one guaranteed account, one mutual fund, the common stock of the Company's parent and a self-directed brokerage account as investment options for participants.

Participant Accounts

Each participant's account is credited with the participant's contribution, the Company's contributions and plan earnings and is charged with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.

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Stifel, Nicolaus Profit Sharing 401(k) Plan

Notes to Financial Statements
December 31, 2004 and 2003

Vesting

Participants are immediately vested in their voluntary contributions plus earnings thereon. Vesting in the Company's contributions portion of their accounts plus earnings thereon is based on years of service. A participant is fully vested after three years of service. The nonvested balance is forfeited upon termination of service. Forfeitures are used to reduce the Company's contributions and then, to the extent any forfeitures remain, reallocated to participants' accounts.

Payment of Benefits

Upon termination of service, an employee may elect to receive a lump-sum amount equal to the vested value of his account, net of any outstanding loan balance. Upon death, a participant's account is paid in a lump sum to the designated beneficiary.

Participant Loans

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum of $50,000 or 50% of their vested account balance, whichever is less. The loans are secured by the balance in the participant's account and bear interest at rates that range from 5.0% to 10.5%, which are commensurate with local prevailing rates as determined by the plan administrator. The repayment period shall not exceed five years, unless such loan is used to acquire a dwelling unit, which will be used as the principal residence of the participant, in which case the repayment period shall not exceed ten years, and interest is charged at prime rate plus one percent.

Plan Termination

Although it has not expressed an intention to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA. In the event of plan termination, participants will become 100% vested in their accounts.

2. Summary of Significant Accounting Policies

Valuation of Investments and Income Recognition

Pooled separate accounts are valued at estimated fair value as provided by the Trustee. The mutual fund, common stock and self-directed brokerage account are stated at fair value based upon quoted market prices. Participant loans and investments in the guaranteed income account are valued at cost, which approximates fair value.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

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Stifel, Nicolaus Profit Sharing 401(k) Plan

Notes to Financial Statements
December 31, 2004 and 2003

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Plan Tax Status

The Plan adopted a prototype plan document which obtained its latest determination letter on February 6, 2002, in which the Internal Revenue Service stated that the Plan and related trust, as then designed, were in compliance with the applicable requirements of the Internal Revenue Code and therefore not subject to tax. The Plan has been amended since receiving the determination letter. However, the plan administrator believes that the Plan and related trust are currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code.

Payment of Benefits

Benefit payments to participants are recorded upon distribution.

Reclassifications

Certain reclassifications have been made to the 2003 financial statement to conform to the 2004 financial statement presentation. These reclassifications had no effect on changes in net assets available for benefits.

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Stifel, Nicolaus Profit Sharing 401(k) Plan

Notes to Financial Statements
December 31, 2004 and 2003

3. Investments

The Plan's investments are held by Prudential Retirement Insurance and Annuity Company ("Prudential"). The following table presents the Plan's investments. Investments that represent 5% or more of total plan assets in either year are separately identified.

	2004	2003
Investments at Fair Value
Common Stock
Stifel Financial Corp	$ 5,689,724	$ 3,617,843
Mutual Fund
American Funds Investment Company of America	8,980,627	2,555,794
Self-Directed Brokerage Account	6,480,306	5,555,984
Investments at Estimated Fair Value
Pooled Separate Accounts
AIM Premier Equity Fund	- -	4,833,633
Large Cap Growth/Goldman Sachs Fund	3,449,667	3,709,083
Large Cap Value/Wellington Management	5,367,285	1,207,191
Lazard Equity Account	- -	3,045,820
Small Cap Growth/Timessquare Fund	6,427,299	6,127,712
Small Cap Value/Perkins, Wolf, McDonnell Fund	3,424,824	2,455,627
Templeton Foreign Account	4,778,219	3,753,757
Other	10,517,653	7,858,105
Prudential Guaranteed Income Accoun	8,036,723	8,259,422
Participant Loans	1,663,478	1,159,135
Total investments	$ 64,815,805	$ 54,139,106

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Stifel, Nicolaus Profit Sharing 401(k) Plan

Notes to Financial Statements
December 31, 2004 and 2003

During the years ended 2004 and 2003, the Plan's investments (including gains and losses on investments bought, sold and held during the year) appreciated in value by $6,531,271 and $10,843,557, respectively, as follows:

	2004	2003
Investments at Fair Value
Mutual fund	$ 502,487	$ 99,804
Stifel Financial Corp. common stock	1,655,478	1,544,880
Self-directed brokerage account	696,256	1,455,059
Investments at Estimated Fair Value
Pooled separate accounts	3,677,050	7,743,814
Net appreciation in fair value	$ 6,531,271	$ 10,843,557

Interest and dividends realized on the Plan's investments for the years ended 2004 and 2003 were $524,083 and $324,184, respectively.

4. Related Party Transactions

Active participants can purchase the common stock of Stifel Financial Corp., the parent of the Company, from their existing account balances. At December 31, 2004 and 2003, participants held 271,586 and 185,530 shares, respectively.

Certain plan investments are units of pooled separate accounts and a guaranteed account managed by Prudential, the trustee of the Plan.

The Plan incurs expenses related to general administration. The plan sponsor pays these expenses and certain accounting and auditing fees relating to the Plan.

5. Change in Trustee

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Supplemental Schedule