Stifel Financial Corp. reported unaudited consolidated financial results for the fourth quarter and full year ended Dec. 31, 2017. The company reported net loss attributable to common shareholders of $4.3 million, or $0.06 per diluted common share on net revenues of $804.1 million for the three months ended December 31, 2017, compared with net income available to common shareholders of $24.5 million, or $0.31 per diluted common share, on net revenues of $661.4 million for the fourth quarter of 2016. For the three months ended December 31, 2017, the company reported record non-GAAP net income available to common shareholders of $120.6 million, or $1.47 per diluted common share. The company's reported GAAP net income for the three months ended December 31, 2017 was primarily impacted by: actions taken by the company in response to the Tax Cuts and Jobs Act that was enacted in the fourth quarter of 2017 to maximize tax savings; litigation-related expenses associated with previously disclosed legal matters; expected merger-related charges; the revaluation of the Company's deferred tax assets as a result of the enacted Tax Legislation; and the favorable impact of the adoption of new accounting guidance during 2017 associated with stock-based compensation. Loss before income taxes was $820,000 against income of $54,894,000 for the same period of last year. Net interest income was $106.8 million, a 42.9% increase compared with the fourth quarter of 2016 and a 6.5% increase compared with the third quarter of 2017. Interest income was $126.6 million, a 39.4% increase compared with the fourth quarter of 2016 and a 7.4% increase compared with the third quarter of 2017. Return on common equity and return on common tangible equity of 18% and 30%, respectively. The effective tax rate for the fourth quarter was 23.9%, and it's just below the targeted range for 2018.

For the year ended December 31, 2017, the company reported net income available to common shareholders of $173.5 million, or $2.14 per diluted common share on net revenues of $2.9 billion, compared with net income available to common shareholders of $77.6 million, or $1.00 per diluted share, on net revenues of $2.6 billion for the comparable period in 2016. For the year ended December 31, 2017, the company reported record non-GAAP net income available to common shareholders of $323.4 million, or $3.99 per diluted common share. The Company's reported GAAP net income for the year ended December 31, 2017 was primarily impacted by: actions taken by the company in response to the Tax Cuts and Jobs Act that was enacted in the fourth quarter of 2017 to maximize tax savings; anticipated merger-related charges; litigation-related expenses associated with previously disclosed legal matters; the revaluation of the company's deferred tax assets as a result of the enacted Tax Legislation; and the favorable impact of the adoption of new accounting guidance during 2017 associated with stock-based compensation. Net interest income was $384.4 million, a 69.0% increase compared with 2016. Interest income was $454.4 million, a 54.4% increase compared with 2016. Income before income taxes was $269,536,000 against $142,582,000 for the same period of last year.

The company expects its net interest margins for the full year of 2018 to improve from year-end 2017 levels. The anticipated asset growth, coupled with an expanding net interest margin, should result in continued growth of its net interest income in 2018.

For the first quarter of 2018, the company is increasing its quarterly operating expense guidance to $154 million to $161 million, excluding the provision for loan losses.