Stifel Financial (SF) Enters Agreement to Acquire City Financial Corp.

September 13, 2016 7:55 AM EDT

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Stifel Financial Corp. (NYSE: SF) announced it has entered into a definitive agreement to acquire 100% of the equity interests in City Financial Corporation, and its wholly owned subsidiary City Securities Corporation, an independent investment bank focused primarily on offering wealth management and public finance services across the Midwest and Indiana. City Financial Corporation's two other wholly owned subsidiaries, City Securities Insurance, LLC and City Real Estate Advisors, are not part of this transaction. Terms of the transaction were not disclosed. Closing is expected in the first quarter of 2017.

Established in 1924 and headquartered in Indianapolis, Indiana, City Securities Corporation has 40 private client advisors in eight offices across Indiana that manage approximately $4 billion in client assets, and its public finance group is the leading underwriter of Indiana municipal bond issues.

"We have known the management team at City Financial for a long time and have always been impressed with their leading market position in the public finance and wealth management businesses within the state of Indiana," said Ronald J. Kruszewski, Chairman and CEO of Stifel. "We believe the addition of City and its growing and profitable business to the Stifel platform further enhances the Company's growing presence in these two attractive businesses."

"City Securities has been a market leader in Indiana for decades, and we believe our partnership with Stifel Financial Corp. will enhance our position in increasingly competitive markets. We are excited about the opportunities that this transaction will provide to our clients as Stifel provides City Securities the resources to elevate our Wealth Advisory and Public Finance platforms," stated Mike Bosway, CEO of City Financial Corporation. "I am also pleased that my entire team of top managers and all of our financial advisors and bankers have committed to this transaction by signing continuation agreements with Stifel, confirming their long-term belief in the combined organization."

Stifel's lead advisor was its own wholly owned subsidiary, Keefe, Bruyette & Woods, Inc., and it was represented for legal counsel by Bryan Cave. City Financial Corporation was advised by Piper Jaffray & Co. and was represented for legal counsel by Barnes and Thornburg.

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