Stifel Financial 8K Reports First Quarter 2012 Financial Results | SF 9 May 12

Exhibit 99.1

FOR IMMEDIATE RELEASE

STIFEL FINANCIAL REPORTS FIRST QUARTER 2012 FINANCIAL RESULTS

Records Second Best Quarter in Company History

Highlights for the three months ended March 31, 2012:

● Net revenues of $400.3 million.

● Net income of $34.8 million, or $0.55 per diluted share.

● Stockholders' equity totaled $1.34 billion and book value per share was $25.07.

ST. LOUIS, May 9, 2012 - Stifel Financial Corp. (NYSE: SF) today reported net income of $34.8 million, or $0.55 per diluted share, on net revenues of $400.3 million for the three months ended March 31, 2012, compared with net income of $31.4 million, or $0.50 per diluted share, on net revenues of $366.6 million for the first quarter of 2011. The company reported net income of $27.0 million, or $0.43 per diluted share, on net revenues of $356.9 million for the three months ended December 31, 2011.

"The first quarter of 2012 proved to be our second best quarter in terms of net revenues, net income and diluted EPS. The overall improvement in the economy positively impacted both our Global Wealth Management and Institutional Group's businesses during the quarter, particularly in investment banking and fixed income trading. During the quarter, we continued to expand our retail platform as a result of successful recruiting of financial advisors," commented Ronald J. Kruszewski, Chairman, President and CEO of Stifel Financial. "Increased levels of activity can be attributed to strong performance of the equity markets, improving investor sentiment, lower volatility, and increased risk taking as evidenced by improved pricing and performance for new offerings. However, outside of a major event or catalyst to move the markets, we remain cautious on the outlook for the remainder of the year. That said, we continue to believe we are well positioned to gain market share from the dislocation in the marketplace and changing regulatory requirements."


Summary Results of Operations (Unaudited)
	Three Months Ended
(in 000s)	3/31/12		3/31/11		% Change			12/31/11		% Change
Net revenues	$	400,333	$	366,613		9.2		$	356,878		12.2
Net income	$	34,773	$	31,398		10.7		$	27,016		28.7
Earnings per share:
Basic	$	0.65	$	0.60		8.3		$	0.52		25.0
Diluted	$	0.55	$	0.50		10.0		$	0.43		27.9
Weighted average number of common shares outstanding:
Basic		53,243		52,534		1.3			51,849		2.7
Diluted		62,669		63,179		(0.8	)		62,695		-

Business Segment Results


Summary Segment Results (Unaudited)
	Three Months Ended
(in 000s)	3/31/12			3/31/11			% Change		12/31/11			% Change
Net revenues:
Global Wealth Management	$	248,348		$	238,446			4.2	$	224,569			10.6
Institutional Group		148,504			126,994			16.9		134,229			10.6
Other		3,481			1,173			196.8		(1,920	)		281.3
	$	400,333		$	366,613			9.2	$	356,878			12.2
Operating contribution:
Global Wealth Management	$	69,178		$	61,472			12.5	$	62,872			10.0
Institutional Group		23,704			21,393			10.8		10,773			120.0
Other		(33,628	)		(32,181	)		4.5		(28,619	)		17.5
	$	59,254		$	50,684			16.9	$	45,026			31.6

Global Wealth Management

For the quarter ended March 31, 2012, the Global Wealth Management ("GWM") segment generated pre-tax operating income of $69.2 million, compared with $61.5 million in the first quarter of 2011 and $62.9 million in the fourth quarter of 2011. Net revenues for the quarter were $248.3 million, compared with $238.4 million in the first quarter of 2011, and $224.6 million in the fourth quarter of 2011. The increase in net revenues from the first quarter of 2011 is primarily attributable to an increase in net interest revenues and investment banking revenues, as well as asset management and service fees and principal transactions revenues, offset by a decrease in commissions. The increase in net revenues from the fourth quarter of 2011 was primarily attributable to an increase in commissions and principal transactions revenues, investment banking revenues and asset management and service fees.

● The Private Client Group reported record net revenues of $232.3 million, a 1% increase compared with the first quarter of 2011 and a 13% increase compared with the fourth quarter of 2011.

● Stifel Bank reported net revenues of $16.0 million, an 80% increase compared with the first quarter of 2011 and an 18% decrease compared with the fourth quarter of 2011.

Institutional Group

For the quarter ended March 31, 2012, the Institutional Group segment generated pre-tax operating income of $23.7 million, compared with $21.4 million in the first quarter of 2011 and $10.8 million in the fourth quarter of 2011. Net revenues for the quarter were $148.5 million, compared with $127.0 million in the first quarter of 2011 and $134.2 million in the fourth quarter of 2011. The increase in net revenues from the first quarter of 2011 was primarily attributable to an increase in capital raising and advisory fees, and an increase in fixed income institutional brokerage revenues, offset by a decrease in equity institutional brokerage revenues. The increase in net revenues from the fourth quarter of 2011 was primarily attributable to an increase in equity capital raising and equity and fixed income institutional brokerage revenues, offset by a decline in equity advisory fees.

Institutional brokerage revenues were $89.5 million, a 1% decrease compared with the first quarter of 2011 and an 11% increase compared with the fourth quarter of 2011.

● Equity brokerage revenues were $44.2 million, a 16% decrease compared with the first quarter of 2011 and a 9% increase compared with the fourth quarter of 2011.

● Fixed income brokerage revenues were $45.3 million, an 18% increase compared with the first quarter of 2011 and a 14% increase compared with the fourth quarter of 2011.

Investment banking revenues were $58.0 million, a 65% increase compared with the first quarter of 2011 and an 11% increase compared with the fourth quarter of 2011.

● Equity capital raising revenues were $31.6 million, a 37% increase compared with the first quarter of 2011 and a 212% increase compared with the fourth quarter of 2011.

● Fixed income capital raising revenues were $10.8 million, a 256% increase compared with the first quarter of 2011 and an 18% decrease compared with the fourth quarter of 2011.

● Advisory fee revenues were $15.6 million, a 72% increase compared with the first quarter of 2011, and a 46% decrease compared with the fourth quarter of 2011.

Consolidated Compensation and Benefits Expenses

For the quarter ended March 31, 2012, compensation and benefits expenses were $254.7 million, compared with $231.2 million in the first quarter of 2011 and $228.7 million in the fourth quarter of 2011.

Compensation and benefits as a percentage of net revenues was 64% in the first quarter of 2012 compared with 63% in the first quarter of 2011 and 64% in the fourth quarter of 2011. Transition pay, which primarily consists of amortization of upfront notes, signing bonuses and retention awards, as a percentage of net revenues was 5% in the first quarter of 2012, consistent with the first and fourth quarters of 2011.

Consolidated Non-Compensation Operating Expenses

For the quarter ended March 31, 2012, non-compensation operating expenses were $86.4 million, compared with $84.8 million in the first quarter of 2011 and $83.1 million in the fourth quarter of 2011.

Non-compensation operating expenses as a percentage of net revenues for the quarter ended March 31, 2012 was 22% compared with 23% in the first quarter of 2011 and 23% in the fourth quarter of 2011.

Provision for Income Taxes

The effective income tax rate for the quarter ended March 31, 2012 was 41% compared with 38% in the first quarter of 2011 and 40% in the fourth quarter of 2011.

Statement of Financial Condition (Unaudited)

Total assets increased 21% to $5.5 billion as of March 31, 2012 from $4.5 billion as of March 31, 2011. The increase is primarily attributable to the growth of the company's bank subsidiary, which as of March 31, 2012 had grown its assets to $2.6 billion from $1.8 billion as of March 31, 2011. As of March 31, 2012, Stifel Bank's investment portfolio of $1.7 billion has increased 34% from March 31, 2011, with more than 99% of the investment portfolio comprised of investment grade securities, of which more than 67% were Government-Sponsored Enterprise guaranteed MBS or AAA-rated investments. The company's broker-dealer subsidiary's gross assets and liabilities, including trading inventory, stock loan/borrow, receivables and payables from/to brokers, dealers and clearing organizations and clients, fluctuate with business levels and overall market conditions.

Total stockholders' equity as of March 31, 2012 increased $55.9 million, or 4%, to $1.34 billion from $1.29 billion as of March 31, 2011. Book value per share was $25.07 as of March 31, 2012 compared to $24.32 as of March 31, 2011.

As of March 31, 2012, the company reported total securities owned and investments at fair value of $2.2 billion, which included securities categorized as Level 3 of $227.0 million. The company's Level 3 assets included auction rate securities and private equity and other fixed income securities with fair values of $170.3 million and $56.7 million, respectively, as of March 31, 2012.

Conference Call Information

Stifel Financial Corp. will host its first quarter 2012 financial results conference call on Wednesday, May 9, 2012, at 5:00 p.m. Eastern time. The conference call may include forward-looking statements.

All interested parties are invited to listen to the company's Chairman, President, and CEO, Ronald J. Kruszewski, by dialing (800) 651-2240 and referencing conference ID #74559190. A live audio webcast of the call, as well as a presentation highlighting the company's results, will be available through the company's web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

Company Information

Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel clients are served through Stifel, Nicolaus & Company, Incorporated in the U.S., through Stifel Nicolaus Canada Inc. in Canada, and through Stifel Nicolaus Europe Limited in the United Kingdom and Europe. The company's broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank & Trust offers a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. offers trust and related services. To learn more about Stifel Financial, please visit the company's web site at www.stifel.com.

Forward-Looking Statements

This earnings release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies' operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. Stifel Financial Corp. disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Summary Results of Operations (Unaudited)
Three Months Ended
(in 000s)	3/31/12		3/31/11		% Change			12/31/11		% Change
Revenues:
Commissions	$	123,303	$	155,786		(20.9	)	$	123,737		(0.4	)
Principal transactions		116,233		92,859		25.2			93,963		23.7
Investment banking		70,438		41,418		70.1			56,075		25.6
Asset management and service fees		60,818		57,680		5.4			55,920		8.8
Other income		13,294		6,256		112.3			8,379		58.7
Operating revenues		384,086		353,999		8.5			338,074		13.6
Interest revenue		25,257		18,856		33.9			25,220		0.1
Total revenues		409,343		372,855		9.8			363,294		12.7
Interest expense		9,010		6,242		44.3			6,416		40.4
Net revenues		400,333		366,613		9.2			356,878		12.2

Non-interest expenses:
Compensation and benefits		254,704		231,166		10.2			228,743		11.3
Occupancy and equipment rental		30,791		29,325		5.0			31,967		(3.7	)
Communication and office supplies		20,373		18,845		8.1			19,391		5.1
Commission and floor brokerage		7,612		6,649		14.5			6,097		24.8
Other operating expenses		27,599		29,944		(7.8	)		25,654		7.6
Total non-interest expenses		341,079		315,929		8.0			311,852		9.4

Income before income taxes		59,254		50,684		16.9			45,026		31.6
Provision for income taxes		24,481		19,286		26.9			18,010		35.9
Net income	$	34,773	$	31,398		10.7		$	27,016		28.7

Earnings per share:
Basic		0.65		0.60		8.3			0.52		25.0
Diluted		0.55		0.50		10.0			0.43		27.9

Weighted average number of common shares outstanding:
Basic		53,243		52,534		1.3			51,849		2.7
Diluted		62,669		63,179		(0.8	)		62,695		-

(in thousands, except per share data, employee and location amounts)
Key statistical information:	3/31/12		3/31/11		% Change		12/31/11		% Change
Book value per share	$	25.07	$	24.32		3.1	$	25.10		(0.1	)
Financial advisors ¹		2,013		1,947		3.4		1,987		1.3
Full-time associates		5,135		4,916		4.5		5,097		0.7
Locations		326		311		4.8		320		1.9
Total client assets		127,192,000		115,284,000		10.3		119,362,000		6.6

1 Includes 155, 160 and 154 independent contractors at March 31, 2012 and 2011 and December 31, 2011, respectively.


Global Wealth Management Segment
Summary Results of Operations (Unaudited)
Three Months Ended
(in 000s)	3/31/12			3/31/11			% Change			12/31/11			% Change
Revenues:
Commissions	$	91,023		$	101,762			(10.6	)	$	83,662			8.8
Principal transactions		59,045			56,163			5.1			53,700			10.0
Asset management and service fees		60,586			57,530			5.3			55,691			8.8
Net interest		17,647			11,169			58.0			17,602			0.3
Investment banking		12,470			6,312			97.6			4,015			210.6
Other income		7,577			5,510			37.5			9,899			(23.5	)
Net revenues		248,348			238,446			4.2			224,569			10.6
Non-interest expenses:
Compensation and benefits		143,757			142,586			0.8			125,053			15.0
Non-compensation operating expenses		35,413			34,388			3.0			36,644			(3.4	)
Total non-interest expenses		179,170			176,974			1.2			161,697			10.8
Income before income taxes	$	69,178		$	61,472			12.5		$	62,872			10.0

As a percentage of net revenues:
Compensation and benefits		57.9	%		59.8	%					55.7	%
Non-compensation operating expenses		14.2	%		14.4	%					16.3	%
Income before income taxes		27.9	%		25.8	%					28.0	%


Stifel Bank & Trust (Unaudited)
Key Statistical Information
(in 000s, except percentages)	3/31/12			3/31/11			% Change		12/31/11			% Change
Other information:
Assets	$	2,611,828		$	1,787,531			46.1	$	2,275,729			14.8
Investment securities		1,673,866			1,253,953			33.5		1,403,522			19.3
Retained loans, net		657,081			396,244			65.8		631,173			4.1
Loans held for sale		141,136			30,866			357.3		131,754			7.1
Deposits		2,357,912			1,625,890			45.0		2,071,738			13.8

Allowance as a percentage of loans		0.87	%		0.63	%				0.83	%
Non-performing assets as a percentage of total assets		0.11	%		0.12	%				0.14	%

1 Includes 155, 160 and 154 independent contractors at March 31, 2012 and 2011 and December 31, 2011, respectively.

Institutional Group Segment
Summary Results of Operations (Unaudited)
Three Months Ended
(in 000s)	3/31/12			3/31/11			% Change			12/31/11			% Change
Revenues:
Commissions	$	32,280		$	54,025			(40.2	)	$	40,076			(19.5	)
Principal transactions		57,188			36,696			55.8			40,263			42.0

Capital raising		42,363			26,046			62.6			23,331			81.6
Advisory fees		15,605			9,060			72.2			28,728			(45.7	)
Investment banking		57,968			35,106			65.1			52,059			11.4
Other income 2		1,068			1,167			(8.5	)		1,831			(41.7	)
Net revenues		148,504			126,994			16.9			134,229			10.6
Non-interest expenses:
Compensation and benefits		94,024			77,187			21.8			89,497			5.1
Non-compensation operating expenses		30,776			28,414			8.3			33,959			(9.4	)
Total non-interest expenses		124,800			105,601			18.2			123,456			1.1
Income before income taxes	$	23,704		$	21,393			10.8		$	10,773			120.0

As a percentage of net revenues:
Compensation and benefits		63.3	%		60.8	%					66.7	%
Non-compensation operating expenses		20.7	%		22.4	%					25.3	%
Income before income taxes		16.0	%		16.8	%					8.0	%

Institutional Group Segment
Institutional Brokerage and Investment Banking Revenues (Unaudited)
Three Months Ended
(in 000s)	3/31/12		3/31/11		% Change			12/31/11		% Change
Institutional brokerage:
Equity	$	44,172	$	52,398		(15.7	)	$	40,598		8.8
Fixed income		45,296		38,323		18.2			39,741		14.0
Institutional brokerage		89,468		90,721		(1.4	)		80,339		11.4

Investment banking:
Capital raising:
Equity		31,550		23,005		37.1			10,109		212.1
Fixed income		10,813		3,041		255.6			13,222		(18.2	)
Capital raising		42,363		26,046		62.6			23,331		81.6
Advisory fees		15,605		9,060		72.2			28,728		(45.7	)
Investment banking	$	57,968	$	35,106		65.1		$	52,059		11.4

Investor Relations Contact

Sarah Anderson, (415) 364-2500, investorrelations@stifel.com

2 Includes net interest and other income.

Stifel Financial (SF) 8-KStifel Financial Reports First Quarter 2012 Financial Results