8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 9, 2009

STIFEL FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Delaware
(State of incorporation)   1-9305
(Commission File Number)   43-1273600
(IRS Employer
Identification No.)  

One Financial Plaza

501 North Broadway

St. Louis, Missouri 63102-2102

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: (314) 342-2000

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

On November 9, 2009 Stifel Financial Corp. announced its results for the three and nine months ended September 30, 2009. A copy of the related press release is attached hereto as Exhibit 99.1.

Stifel Financial Corp. will hold a conference call on Monday, November 9, 2009, at 4:45 p.m. EST. This call will be webcast and slides can be accessed on the Investor Relations portion of the Stifel Financial Corp. website at www.stifel.com, as well as on all sites within Thomson/CCBN's Investor Distribution Network. To participate on the call, please dial 888-676-3684 and request the Stifel Financial Corp. earnings call. The conference call slide show is attached hereto as Exhibit 99.2.

The exhibits are being furnished pursuant to Item 2.02, and the information contained therein shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01   Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are being furnished pursuant to Item 12 "Disclosure of Results of Operations and Financial Condition," and the information contained therein shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Exhibit Number	Description of Exhibit
99.1	Press Release dated November 9, 2009.
99.2	Investor Presentation.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	STIFEL FINANCIAL CORP.
Date: November 9, 2009	By:	/s/ James M. Zemlyak
		James M. Zemlyak
		Senior Vice President, Treasurer and Chief Financial Officer

3

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
99.1	Press Release dated November 9, 2009.
99.2	Investor Presentation.

4

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Stifel Financial Corp. Announces Record Results

Record Quarterly Results:

• Net Income of $22.1 million, up 73%.

• Net Revenues of $289.7 million, up 32%.

• Diluted Earnings Per Share of $0.67, up 46%.

Record Year-to-Date Results:

• Net Income of $51.1 Million, up 30%.

• Net Revenues of $771.2 million, up 21%.

• Diluted Earnings Per Share of $1.62, up 13%.

St. Louis, Missouri - November 9, 2009 - Stifel Financial Corp. (NYSE: "SF") today announced unaudited record quarterly net income of $22.1 million, or $0.67 per diluted share, on record net revenues of $289.7 million for its third quarter ended September 30, 2009, compared to $12.8 million, or $0.46 per diluted share, on net revenues of $218.9 million reported for the same period last year.

Net income for the nine months ended September 30, 2009 was $51.1 million, or $1.62 per diluted share, on record net revenues of $771.2 million, compared with $39.4 million, or $1.44 per diluted share, on net revenues of $639.4 million, in the prior year period. The three and nine month periods ended September 30, 2008, include acquisition-related charges, primarily compensation, of $3.9 million, or $0.14 per diluted share, and $11.9 million, or $0.44 per diluted share, respectively.  Our current year third quarter and year-to-date effective tax rates were reduced due to the recognition of a tax benefit related to an investment and jobs creation tax credit.

At September 30, 2009, our stockholders' equity was $833.6 million, resulting in book value per share of $27.63. During the nine months ended September 30, 2009, we completed two public offerings of our $0.15 par value common stock totaling 2,725,000 shares for total net proceeds of $135.6 million.

Chairman's Comments

Chairman and Chief Executive Officer Ronald J. Kruszewski commented, "We are pleased with our quarterly results.  Our company is on pace for its 14th consecutive year of record net revenues and, despite significant investment in our platform and capabilities, is also on track to post record net income for the year.  Our quarterly results were positively impacted by a $0.10 earnings per share tax benefit, which was offset by approximately $0.07 earnings per share in transitional expenses, including $1.9 million in duplicate rent for our New York offices and $2.5 million in conversion expenses related to our UBS transaction.  During the quarter, we raised approximately $92 million in equity capital to support our plans to become the premier middle-market investment bank and brokerage firm."

Stifel Financial Corp.
Summary Results of Operations (Unaudited)
(in thousands, except per share amounts)
	Three Months Ended										Nine Months Ended
	9/30/09		9/30/08		Change		6/30/09		Change		9/30/09		9/30/08		Change
Results of operations data:
Total revenues	$	292,589	$	223,829	30.7	%	$	264,550	10.6	%	$	779,471	$	655,091	19.0	%
Net revenues	$	289,683	$	218,923	32.3	%	$	261,505	10.8	%	$	771,169	$	639,351	20.6	%
Net income	$	22,138	$	12,777	73.3	%	$	15,815	40.0	%	$	51,130	$	39,456	29.6	%
Earnings per share:
Basic	$	0.77	$	0.54	42.6	%	$	0.58	32.8	%	$	1.85	$	1.68	10.1	%
Diluted	$	0.67	$	0.46	45.7	%	$	0.51	31.4	%	$	1.62	$	1.44	12.5	%
Weighted average shares outstanding:
Basic		28,708		23,830	20.5	%		27,455	4.6	%		27,652		23,520	17.6	%
Diluted		32,817		28,045	17.0	%		31,270	4.9	%		31,468		27,335	15.1	%

Stifel Financial Corp.
Summary Results of Operations (Unaudited)
(in thousands, except per share amounts)
	Three Months Ended											Nine Months Ended
	9/30/09		9/30/08			Change		6/30/09		Change		9/30/09		9/30/08			Change
Revenues:
Principal transactions	$	123,238	$	68,182		80.7	%	$	121,261	12.6	%	$	341,777	$	200,793		70.2	%
Commissions		90,905		88,727		2.5			80,721	1.6			246,236		257,491		(4.4	)
Investment banking		35,056		25,156		39.4			24,702	41.9			75,262		67,935		10.8
Asset management and service fees		25,498		30,336		(15.9	)		24,543	3.9			74,974		90,580		(17.2	)
Other income/(loss)		6,586		(1,391	)	*			2,739	*			9,440		(883	)	*
Operating revenues		281,283		211,010		33.3			253,966	10.8			747,689		615,916		21.4
Interest revenue		11,306		12,819		(11.8	)		10,584	6.8			31,782		39,175		(18.9	)
Total revenues		292,589		223,829		30.7			264,550	10.6			779,471		655,091		19.0
Interest expense		2,906		4,906		(40.8	)		3,045	(4.6	)		8,302		15,740		(47.3	)
Net revenues		289,683		218,923		32.3			261,505	10.8			771,169		639,351		20.6
Non-interest expenses:
Compensation and benefits		193,131		150,203		28.6			175,881	9.8			516,852		441,028		17.2
Occupancy and equipment rental		24,730		17,286		43.1			20,714	19.4			63,311		49,012		29.2
Communications and office supplies		14,429		11,192		28.9			13,129	9.9			39,403		32,887		19.8
Commission and floor brokerage		6,486		4,348		49.2			6,321	2.6			17,167		8,315		106.5
Other non-interest expenses		20,071		14,800		35.6			19,351	3.7			55,336		42,940		28.9
Total non-interest expenses		258,847		197,829		30.8			235,396	10.0			692,069		574,182		20.5
Income before income taxes		30,836		21,094		46.2			26,109	18.1			79,100		65,169		21.4
Provision for income taxes		8,698		8,317		4.6			10,294	(15.5	)		27,970		25,713		8.8
Net income	$	22,138	$	12,777		73.3	%	$	15,815	40.0	%	$	51,130	$	39,456		29.6	%
Earnings per share:
Basic	$	0.77	$	0.54		42.6	%	$	0.58	32.8	%	$	1.85	$	1.68		10.1	%
Diluted	$	0.67	$	0.46		45.7	%	$	0.51	31.4	%	$	1.62	$	1.44		12.5	%
Weighted average number of common shares outstanding:
Basic		28,708		23,830		20.5	%		27,455	4.6	%		27,652		23,520		17.6	%
Diluted		32,817		28,045		17.0	%		31,270	4.9	%		31,468		27,335		15.1	%
* Percentage is not meaningful.

Stifel Financial Corp.
(in thousands, except per share, employee and location amounts)
	September 30,  2009		September 30,  2008		Change		June 30,  2009		Change
Statistical Information:
Book value per share	$	27.63	$	22.21	24.4	%	$	24.86	11.1	%
Financial advisors		1,823		1,219	49.5	%		1,562	16.7	%
Full-time employees		4,289		3,038	41.2	%		3,849	11.4	%
Locations		281		194	44.8	%		239	17.6	%
Total client assets	$	83,501,000	$	58,860,000	41.9	%	$	64,653,000	29.2	%

2

Review of Business Highlights

Third Quarter Highlights

For the three months ended September 30, 2009, we posted record net revenues of $289.7 million, a 32% increase over the third quarter of 2008 and an 11% increase over the second quarter of 2009. Our revenue growth was primarily derived from increased principal transactions and investment banking offset by a decline in asset management fees. Net income of $22.1 million, or $0.67 per diluted share, increased 73% over the third quarter of 2008 and increased 40% over the second quarter of 2009.

Revenues

• Principal transactions revenue of $123.3 million increased 81% over the third quarter of 2008 and increased 13% from the second quarter of 2009. Principal transactions increased in the Global Wealth Management ("GWM") and Capital Markets ("CM") segments, primarily in over-the-counter equity, corporate, government and municipal debt and mortgage-backed bonds.

• Commission revenue of $90.9 million increased 3% from the third quarter of 2008 and increased 2% from the second quarter of 2009.

• Investment banking revenue increased 39% from the third quarter of 2008 to $35.1 million and increased 42% from the second quarter of 2009. Capital raising revenues increased $11.3 million to $22.4 million as compared to the third quarter of 2008 and increased 57% from the second quarter of 2009. Strategic advisory fees decreased 9% to $12.7 million as compared to the third quarter of 2008 and increased 22% from the second quarter of 2009.

• Asset management and service fees revenue decreased 16% to $25.5 million from the third quarter of 2008 primarily as a result of a 10% decrease in the value of assets in fee based client accounts, and increased 4% from the second quarter of 2009, primarily as a result of a 23% increase in the value of assets in fee based client accounts.

Non-interest expenses

• Compensation and benefits expense increased 29% to $193.1 million from the third quarter of 2008 and increased 10% from the second quarter of 2009, primarily due to increased production and headcount associated with the expansion of our GWM and CM segments. For the three months ended September 30, 2009, compensation and benefits expense includes $14.8 million, or 5% of net revenues, of transition pay, which primarily consist of upfront notes, signing bonuses and retention awards in connection with our continuing expansion efforts, compared to $9.7 million, or 4% of net revenues, for the comparable period in 2008 and $13.9 million, or 5% of net revenues, for the second quarter of 2009.

• Non-compensation operating expenses increased 38% to $65.7 million from the third quarter of 2008, and increased 10% from the second quarter of 2009 primarily due to the aforementioned expansion of our GWM and CM segments.

Provision for income taxes

• Provision for income taxes was $8.7 million, representing an effective tax rate of 28%, compared to $8.3 million for the comparable period in 2008, representing an effective tax rate of 39%. Our current year third quarter effective tax rate was reduced due to the recognition of a tax benefit of $3.4 million related to an investment and jobs creation tax credit.

YTD Highlights

For the nine months ended September 30, 2009, we posted record net revenues of $771.2 million, a 21% increase over the comparable period in 2008. Our revenue growth was primarily derived from increased principal transactions and investment banking offset by a decline in commissions and asset management fees. Net income increased 30% to $51.1 million, or $1.62 per diluted share.

Revenues

• Principal transactions revenue for the nine months ended September 30, 2009 increased 70% to $341.8 million from the comparable period in 2009. Principal transactions increased in the GWM and CM segments, primarily in over-the-counter equity, corporate, government and municipal debt and mortgage-backed bonds.

• Commission revenue of $246.2 million for the nine months ended September 30, 2009 decreased 4% from the comparable period in 2008.

3

• Investment banking revenue for the nine months ended September 30, 2009 increased 11% to $75.3 million from the comparable period in 2008. For the nine months ended September 30, 2009, capital raising revenues increased 17% to $42.1 million while strategic advisory fees increased 4% to $33.2 million as compared to the prior year.

• Asset management and service fees revenue for the nine months ended September 30, 2009 decreased 17% to $75.0 million from the comparable period in 2008, primarily as a result of a 10% decrease in the value of assets in fee based client accounts.

• Customer margin interest revenue for the nine months ended September 30, 2009 decreased $8.6 million or 49% from the comparable period in 2008, primarily as a result of a decrease in the margin receivables due to market volatility.

Non-interest expenses

• For the nine months ended September 30, 2009, compensation and benefits expense increased 17% to $516.9 million from the comparable period in 2008, primarily due to increased production and headcount associated with the expansion of our GWM and CM segments in the first nine months of 2009. For the nine months ended September 30, 2009, compensation and benefits expense includes $40.9 million, or 5% of net revenues, of transition pay compared to $25.5 million, or 4% of net revenues, for the comparable period in 2008.

• Non-compensation operating expenses for the nine months ended September 30, 2009 increased 32% to $175.2 million from the comparable period in 2008, primarily due to the aforementioned expansion of our GWM and CM segments during the first nine months of 2009.

Provision for income taxes

• Provision for income taxes was $28.0 million, representing an effective tax rate of 35%, compared to $25.7 million for the comparable period in 2008, representing an effective tax rate of 39%. The reduction of our year-to-date effective tax rate is attributable to the previously mentioned tax benefit recognized in the third quarter of 2009.

Business Segment Results

	Summary Segment Results (Unaudited)
	Three Months Ended													Nine Months Ended
	9/30/09			9/30/08			Change		6/30/09			Change		9/30/09			9/30/08			Change
Net revenues:
Global Wealth Management	$	157,145		$	117,151		34.1	%	$	135,310		16.1	%	$	406,619		$	358,322		13.5	%
Capital Markets		130,179			101,598		28.1			125,136		4.0			360,787			277,548		30.0
Other		2,359			174		*			1,059		122.8			3,763			3,481		8.1
Net revenues	$	289,683			218,923		32.3	%	$	261,505		10.8	%	$	771,169		$	639,351		20.6	%
Operating contribution:
Global Wealth Management	$	27,540			23,533		17.0	%	$	22,307		23.5	%	$	67,081		$	79,725		(15.9)	%
Capital Markets		33,433			23,789		40.5			31,850		5.0			91,317			60,999		49.7
Other		(30,137	)		(26,228	)	14.9			(28,048	)	7.4			(79,298	)		(75,555	)	5.0
Income before income taxes	$	30,836		$	21,094		46.2	%	$	26,109		18.1	%	$	79,100		$	65,169		21.4	%
* Percentage is not meaningful.

4

Global Wealth Management Segment

The UBS branch acquisition and related customer account conversion to our platform has enabled us to leverage our customers' assets, which allows us the ability to provide a full array of financial products to both our Private Client Group and Stifel Bank customers. As a result, we have changed how we manage these reporting units and consequently they will be combined to form the Global Wealth Management segment effective September 30, 2009.

Third Quarter Highlights

• Net revenues of $157.1 million, a 34% increase over the third quarter of 2008 and a 16% increase from the second quarter of 2009. Our Global Wealth Management segment consists of the Private Client Group ("PCG") and Stifel Bank & Trust ("Stifel Bank") reporting units. PCG had net revenues of $152.2 million, a 34% increase over the third quarter of 2008 and a 16% increase from the second quarter of 2009. Stifel Bank had net revenues of $4.9 million, a 55% increase over the third quarter of 2008 and a 19% increase from the second quarter of 2009.

• Commission revenue increased 27% over the third quarter of 2008 and increased 21% from the second quarter of 2009.

• Principal transactions revenue increased 86% over the third quarter of 2008 and increased 9% from the second quarter of 2009.

• Investment banking revenues, which represents sales commissions on investment banking underwritings, increased 26% from the third quarter of 2008 and increased 50% from the second quarter of 2009.

• Asset management and service fees revenue decreased 16% from the third quarter of 2008 and increased 4% from the second quarter of 2009.

• For the three months ended September 30, 2009, compensation and benefits expense was 62% of net revenues compared to 61% for the comparable period in 2008 and 62% for the second quarter of 2009.

• Operating contribution of $27.5 million, a 17% increase from the third quarter of 2008 and a 24% increase from the second quarter of 2009.

• Stifel Bank's investment portfolio increased 358% over the third quarter of 2008 and increased 126% from the second quarter of 2009, primarily due to purchases of agency mortgage-backed securities.

• Stifel Bank's retained loan portfolio increased 66% over the third quarter of 2008 and increased 86% from the second quarter of 2009, driven by the addition of Reg U loans acquired in the UBS transaction.

• Bank deposits increased 235% over the third quarter of 2008 and increased 86% from the second quarter of 2009.

YTD Highlights

• Net revenues of $406.6 million for the nine months ended September 30, 2009, a 14% increase over the comparable period in 2008. PCG and Stifel Bank had net revenues of $393.9 million and $12.7 million for the nine months ended September 30, 2009, a 13% and 50% increase, respectively, over the comparable period in 2008.

• Commission revenue and principal transactions revenue for the nine months ended September 30, 2009 increased 8% and 55%, respectively, over the comparable period in 2008.

• Investment banking revenue, which represents sales commissions on investment banking underwritings, decreased 33% from the comparable period in 2008.

• Asset management and service fees revenue decreased 17% from the comparable period in 2008.

• For the nine months ended September 30, 2009, compensation and benefits expense was 62% of net revenues compared to 61% for the comparable period in 2008.

• Operating contribution of $67.1 million for the nine months ended September 30, 2009, a 16% decrease from the comparable period in 2008.

• We completed the integration of Butler Wick PCG offices we acquired on December 31, 2008.

• We completed three waves of the UBS acquisition during the third quarter.  The final wave closed on October 16, 2009.

• We added 83 PCG offices and 583 Financial Advisors, including 40 offices and 245 Financial Advisors from UBS and 17 offices and 67 Financial Advisors from Butler Wick, in the first nine months as part of our ongoing footprint expansion efforts.

5

Global Wealth Management Results and Statistical Information (Unaudited)
	Three Months Ended													Nine Months Ended
	9/30/09			9/30/08			Change		6/30/09			Change		9/30/09			9/30/08			Change
Revenues:
Commissions	$	63,161		$	49,563		27.4	%	$	52,091		21.3	%	$	158,468		$	146,860		7.9	%
Principal transactions		53,052			28,468		86.4			48,759		8.8			140,248			90,663		54.7
Asset management and service fees		25,406			30,111		(15.6	)		24,452		3.9			74,689			90,199		(17.2	)
Investment banking		4,263			3,371		26.4			2,843		49.9			9,176			13,690		(33.0	)
Net interest		7,186			5,397		33.2			5,531		29.9			18,124			15,810		14.6
Other income/(loss)		4,077			241		*			1,634		*			5,914			1,100		*
Net revenues		157,145			117,151		34.1			135,310		16.1			406,619			358,322		13.5
Non-interest expenses:
Compensation and benefits		96,711			71,388		35.5			83,829		15.4			253,169			218,661		15.8
Other non-interest expenses		32,894			22,230		48.0			29,174		12.8			86,369			59,936		44.1
Total non-interest expenses		129,605			93,618		38.4			113,003		14.7			339,538			278,597		21.9
Income before income taxes	$	27,540		$	23,533		17.0	%	$	22,307		23.5	%	$	67,081		$	79,725		(15.9)	%
As a percentage of net revenues:
Compensation and benefits		61.5	%		60.9	%				62.0	%				62.3	%		61.0	%
Other non-interest expenses		21.0	%		19.0	%				21.6	%				21.2	%		16.8	%
Net margin		17.5	%		20.1	%				16.4	%				16.5	%		22.2	%
* Percentage is not meaningful.

Stifel Bank & Trust
(in thousands)
	September 30,  2009			June 30,  2009			Change		September 30,  2008			Change
Other information:
Assets	$	965,569		$	532,308		81.4	%	$	327,729		195.0	%
Investment securities	$	300,623		$	133,238		125.6	%	$	65,592		358.3	%
Retained loans, net	$	336,865		$	181,580		85.5	%	$	203,181		65.7	%
Loans held for sale, net	$	30,947		$	43,320		(28.6)	%	$	11,370		172.2	%
Deposits	$	875,028		$	470,430		86.0	%	$	261,018		235.2	%
Allowance as a percentage of loans (1)		0.73	%		1.66	%				1.22	%
Non performing loans as a percentage of assets		0.18	%		0.84	%				0.06	%
(1) Excluding acquired loans of $140.0 million, the allowance as a percentage of gross loans totaled 1.25% as of 9/30/09.

6

Capital Markets Segment

Third Quarter Highlights

• Net revenues of $130.2 million, a 28% increase over the third quarter of 2008 and a 4% increase from the second quarter of 2009. Our Capital Markets segment consists of our Equity Capital Markets ("ECM") and Fixed Income Capital Markets ("FICM") reporting units.

• Institutional brokerage revenues were $97.9 million, a 24% increase over the third quarter of 2008 and a 3% decrease from the second quarter of 2009. ECM institutional brokerage revenues were $39.7 million, an 11% decrease over the third quarter of 2008 and a 4% increase from the second quarter of 2009. FICM institutional brokerage revenues were $58.2 million, a 71% increase over the third quarter of 2008 and an 8% decrease from the second quarter 2009.

• Investment banking revenues were $30.8 million, a 41% increase over the third quarter of 2008 and a 41% increase over the second quarter of 2009. ECM investment banking revenues were $24.6 million, a 35% increase over the third quarter of 2008 and a 41% increase over the second quarter of 2009. FICM investment banking revenues were $6.2 million, a 76% increase over the third quarter of 2008 and a 42% increase over the second quarter of 2009.

  • Capital raising revenues were $18.1 million, a 134% increase over the third quarter of 2008 and a 59% increase over the second quarter of 2009. ECM capital raising revenues were $13.2 million, a 144% increase over the third quarter of 2008 and a 75% increase over the second quarter of 2009. FICM capital raising revenues were $4.9 million, a 110% increase over the third quarter of 2008 and a 27% increase over the second quarter of 2009.

  • Advisory fees were $12.7 million, a 10% decrease from the third quarter of 2008 and a 22% increase over the second quarter of 2009. ECM advisory fees were $11.4 million, an 11% decrease from the third quarter of 2008 and a 15% increase over the second quarter of 2009. FICM advisory fees were $1.3 million, an 11% increase over the third quarter of 2008 and a 142% increase over the second quarter of 2009.

• For the three months ended September 30, 2009, compensation and benefits expense was 60% of net revenues compared to 61% for the third quarter of 2008 and 59% for the second quarter of 2009.

• Operating contribution of $33.4 million, a 41% increase over the third quarter of 2008 and a 5% increase from the second quarter of 2009.

• Net margins were 26% compared to 23% for the third quarter of 2008 and 25% in the second quarter 2009.

YTD Highlights

• Net revenues of $360.8 million for the nine months ended September 30, 2009, a 30% increase over the comparable period in 2008.

• Institutional brokerage revenues were $289.3 million, a 31% increase over the comparable period in 2008. ECM and FICM institutional brokerage revenues were $114.6 million and $174.7 million, a 1% decrease and 66% increase, respectively, over the comparable period in 2008.

• Investment banking revenues were $66.1 million, a 22% increase over the comparable period in 2008. ECM and FICM investment banking revenues were $52.1 million and $14.0 million, a 17% and 42% increase, respectively, over the comparable period in 2008.

  • Capital raising revenues were $32.9 million, a 48% increase over the comparable period in 2008. ECM and FICM capital raising revenues were $21.4 million and $11.5 million, a 28% and 107% increase, respectively, over the comparable period in 2008.

  • Advisory fees were $33.2 million, a 4% increase over the comparable period in 2008. ECM and FICM advisory fees were $30.7 million and $2.5 million, an 11% increase and a 42% decrease, respectively, over the comparable period in 2008.

• For the nine months ended September 30, 2009, compensation and benefits expense was 59% of net revenues compared to 62% for the comparable period in 2008.

• Net margins for the nine months ended September 30, 2009 were 25% compared to 22% for the comparable period in 2008.

• We added 63 revenue producers in the first nine months of 2009.

7

	Capital Markets Results and Statistical Information (Unaudited)
	Three Months Ended													Nine Months Ended
	9/30/09			9/30/08			Change		6/30/09			Change		9/30/09			9/30/08			Change
Revenues:
Principal transactions	$	70,186		$	39,713		76.7	%	$	72,502		(3.2)	%	$	201,529		$	110,129		83.0	%
Commissions		27,743			39,164		(29.2	)		28,630		(3.1	)		87,767			110,631		(20.7	)
Capital raising		18,070			7,733		133.7			11,391		58.6			32,890			22,257		47.8
Advisory fees		12,724			14,052		(9.5	)		10,467		21.6			33,197			31,988		3.8
Investment banking		30,794			21,785		41.4			21,858		40.9			66,087			54,245		21.8
Other income		1,456			936		55.6			2,146		(32.2	)		5,404			2,543		112.5
Net revenues		130,179			101,598		28.1			125,136		4.0			360,787			277,548		30.0
Non-interest expenses:
Compensation and benefits		77,483			62,030		24.9			74,250		4.4			214,251			171,875		24.7
Other non-interest expenses		19,263			15,779		22.1			19,036		1.2			55,219			44,674		23.6
Total non-interest expenses		96,746			77,809		24.3			93,286		3.7			269,470			216,549		24.4
Income before income taxes	$	33,433		$	23,789		40.5	%	$	31,850		5.0	%	$	91,317		$	60,999		49.7	%
As a percentage of net revenues:
Compensation and benefits		59.5	%		61.0	%				59.3	%				59.4	%		61.9	%
Other non-interest expenses		14.8	%		15.6	%				15.3	%				15.3	%		16.1	%
Net margin		25.7	%		23.4	%				25.4	%				25.3	%		22.0	%

8

Statement of Financial Condition Highlights (Unaudited)

Total assets increased 42% to $2.9 billion at September 30, 2009 from $2.0 billion at September 30, 2008. The increase is primarily attributable to increased receivables, trading inventory, financial instruments, loans and advances to financial advisors and the recognition of goodwill associated with our acquisition of UBS, which is based on preliminary estimates and is subject to change upon the final valuation. Our 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 our business levels and overall market conditions. The increase in assets is primarily attributable to the growth of our company, both organically and through the acquisition of UBS. Total stockholders' equity increased $268.2 million, or 47%, to $833.6 million at September 30, 2009, principally due to proceeds from our two equity offerings, net income, and amortization of stock-based awards.

At September 30, 2009, we reported total securities owned and investments at fair value of $990.2 million, which included securities categorized as level III of $73.3 million. Our level III assets include $55.8 million of auction rate securities, of which the auctions have failed.

Conference Call Information

Stifel Financial Corp. will hold a conference call Monday, November 9, 2009, at 4:45 p.m. Eastern. This call will be Web cast and slides can be accessed on the Investor Relations portion of the Stifel Financial Corp. website at www.stifel.com, as well as on all sites within Thomson/CCBN's Investor Distribution Network. Questions may be posed to management by participants on the call, and in response, the company may disclose additional material information. To participate in the question and answer portion on the call, please dial 888-676-3684 and request the Stifel Financial Corp. earnings call.  The subjects to be covered may also contain forward-looking information.

Company Information

Stifel Financial Corp. operates 297 offices in 41 states and the District of Columbia through its principal subsidiary, Stifel Nicolaus and Company, Inc., and 3 European offices through Stifel Nicolaus Limited. Stifel Nicolaus provides securities brokerage, investment banking, trading, investment advisory, commercial and retail banking 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. To learn more about Stifel, please visit our company's web site at www.stifel.com. 

Forward-Looking Statements

This press 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 press release not dealing with historical results are forward-looking and are based on various assumptions.  The forward-looking statements in this press 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 the acquired companies or the branch offices and financial advisors as part of the our transaction with UBS; a material adverse change in the 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 with the Securities and Exchange Commission.  Forward-looking statements speak only as to the date they are made.  Stifel does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Stifel disclaims any intent or obligation to update these forward-looking statements. 

# # # # # #

For further information contact:

James M. Zemlyak, Chief Financial Officer

(314) 342-2228 zemlyakj@stifel.com

9

EX-99.2

Exhibit 99.2

Stifel Financial Corp. 3rd Quarter 2009 Earnings Conference Call November 9, 2009

Forward-Looking Statements

Chairman's Comments

3rd Quarter 2009 Highlights

YTD 2009 Highlights

Stifel Financial Corp. Income Statements

Significant Quaterly Items Three Months Ended September 30, 2009

Private Client Group Normalized Pro Forma Three Months Ended September 30, 2009

Source of Revenues

Principal Transactions

Stifel Income Statements Non-Interest Expenses

Segment Comparision

YTD Segment Comparision (Excludes Acquisitions)

Global Wealth Management Income Statements

Stifel Bank & Trust Income Statements

Stifel Bank & Trust

Capital Markets Income Statement

Capital Markets Revenues

Other Segment Analysis

Stifel Financial Balance Sheet Graphs

Capital Structure

Level 3 Assets

Other Financial Data

Stifel Outlook

Growth

ACAT Fee Reimbursement

De Novo Branches

Q&A - Questions and Answers