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): August 8, 2011

STIFEL FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Delaware
(State of incorporation)   001-09305
(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 August 8, 2011, Stifel Financial Corp. reported its financial results for the three months ended June 30, 2011. A copy of the related press release is attached hereto as Exhibit 99.1. The press release includes a reference to core earnings per diluted common share. Management believes this non-GAAP financial measure provides useful information to investors because it excludes certain legal and merger-related charges, which are unrelated to our primary business operations, and the exclusion of these charges helps investors understand our operating results and underlying operational trends as compared to prior periods.

Stifel Financial Corp. will hold a conference call on Monday, August 8, 2011, at 5:00 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. All interested parties are invited to participate by dialing (888) 676-3684 and referencing conference ID #87862307.  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.

Exhibit No.	Description of Exhibit
99.1	Press release dated August 8, 2011.
99.2	Investor presentation.

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: August 8, 2011	By:	/s/ James M. Zemlyak
		James M. Zemlyak
		Senior Vice President, Treasurer and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press release dated August 8, 2011.
99.2	Investor presentation.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

STIFEL FINANCIAL CORP. REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS

• Net revenues of $358.9 million increased 9% from the second quarter of 2010.

• Non-GAAP net income of $31.3 million¹, or $0.50 per diluted share², increased 30% from the second quarter of 2010.

• GAAP net income of $3.4 million, or $0.05 per diluted share.

• Stockholders' equity was $1.3 billion and book value per share was $24.50 as of June 30, 2011.

ST. LOUIS, August 8, 2011 - Stifel Financial Corp. (NYSE: SF) today reported unaudited GAAP net revenues of $358.9 million for the three months ended June 30, 2011. The company reported non-GAAP net income of $31.3 million¹, or $0.50 per diluted share, for the three months ended June 30, 2011, compared with non-GAAP net income of $24.1 million¹, or $0.46 per diluted share², on net revenues of $328.0 million for the second quarter of 2010. On a GAAP basis, the company reported unaudited net income of $3.4 million, or $0.05 per diluted share, for the three months ended June 30, 2011, compared with net income of $21.1 million, or $0.40 per diluted share² for the second quarter of 2010. A reconciliation of the company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

GAAP results for the three months ended June 30, 2011 were significantly impacted by charges relating to ongoing civil litigation with five southeastern Wisconsin school districts ("District Litigation") and the associated regulatory investigation. The charges relating to the District Litigation are the result of the purchase of $162.5 million in notes from Depfa Bank and a provision for estimated costs associated with the ongoing civil litigation and related SEC matter. In addition, the Company incurred merger-related expenses as a result of our merger with Thomas Weisel Partners Group, Inc. ("TWPG"). These charges reduced net income by $27.9 million or $0.45 per diluted share.

For the six months ended June 30, 2011, the company reported non-GAAP net income of $64.2 million¹, or $1.02 per diluted share, on net revenues of $725.6 million, compared with non-GAAP net income of $47.8 million¹, or $0.91 per diluted share², on net revenues of $640.0 million during the comparable period in 2010. On a GAAP basis, the company reported unaudited net income of $34.8 million, or $0.55 per diluted share, for the six months ended June 30, 2011, compared with unaudited net income of $44.8 million, or $0.85 per diluted share², during the comparable period in 2010.

"Second quarter results improved over the year-ago period, but were impacted by a challenging market environment dominated by macroeconomic factors, and significant non-core expenses primarily related to additional legal reserves in connection with previously disclosed matters. Despite these factors, our investment banking group generated their second best revenue quarter, which was offset by pressure in our brokerage and private client businesses due to a lack of investor conviction coupled with lower industry-wide volumes," commented Ronald J. Kruszewski, Chairman, President and Chief Executive Officer of Stifel Financial. "We continue to position the firm for long-term growth and our recent announcement of the pending acquisition of Stone & Youngberg delivers on this strategy by adding public finance expertise and coverage in new markets. We are excited about combining our highly complementary businesses and delivering enhanced services to both our institutional and wealth management clients."

Summary Results of Operations (Unaudited)
	Three Months Ended											Six Months Ended
(in 000s)	6/30/11		6/30/10		% Change			3/31/11		% Change		6/30/11		6/30/10		% Change
Net revenues	$	358,857	$	328,009		9.4		$	366,613		(2.1)	$	725,470	$	640,039		13.3
Net income	$	3,416	$	21,109		(83.8	)	$	31,398		(89.1)	$	34,814	$	44,849		(22.4	)
Non-GAAP net income 1	$	31,316	$	24,060		30.2		$	32,926		(4.9)	$	64,242	$	47,835		34.3
Earnings per share: 2
Basic	$	0.06	$	0.46		(87.0	)	$	0.60		(90.0)	$	0.66	$	0.97		(32.0	)
Diluted	$	0.05	$	0.40		(87.5	)	$	0.50		(90.0)	$	0.55	$	0.85		(35.3	)
Non-GAAP diluted 1	$	0.50	$	0.46		8.7		$	0.52		(3.8)	$	1.02	$	0.91		12.1

¹ A reconciliation of the company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

² Per share information for the three and six months ended June 30, 2010 has been retroactively adjusted to reflect the April 2011 three-for-two stock split.

Business Segment Results

Summary Segment Results (Unaudited)
(in thousands)
	Three Months Ended													Six Months Ended
	6/30/11			6/30/10			% Change		3/31/11			% Change		6/30/11			6/30/10			% Change
Net revenues: 3
Global Wealth Management	$	225,645		$	199,940		12.9		$	238,446		(5.4	)	$	464,091		$	399,361		16.2
Institutional Group		132,915			124,602		6.7			126,994		4.7			259,909			237,894		9.3
Other		403			3,467		(88.4	)		1,179		(65.8	)		1,582			2,784		(43.2	)
Net revenues	$	358,963		$	328,009		9.4		$	366,619		(2.1	)	$	725,582		$	640,039		13.4
Operating contribution: 3
Global Wealth Management	$	55,426		$	40,441		37.1		$	61,472		(9.8	)	$	116,898		$	79,599		46.9
Institutional Group		21,951			30,769		(28.7	)		21,393		2.6			43,344			58,225		(25.6	)
Other		(28,321	)		(30,240	)	(6.3	)		(29,714	)	(4.7	)		(58,035	)		(57,287	)	1.3
Income before income taxes	$	49,056		$	40,970		19.7		$	53,151		(7.7	)	$	102,207		$	80,537		26.9

Global Wealth Management

For the quarter ended June 30, 2011, the Global Wealth Management ("GWM") segment generated pre-tax operating income of $55.4 million, compared with $40.4 million in the second quarter of 2010 and $61.5 million in the first quarter of 2011. Net revenues for the quarter were $225.6 million, compared with $199.9 million in the second quarter of 2010, and $238.4 million in the first quarter of 2011. The increase in net revenues over the comparable period in 2010 is primarily attributable to: (1) higher commissions revenues as a result of increased client assets coupled with higher productivity; (2) growth in asset management and service fees as a result of an increase in assets under management, positive gains in market performance and contributions as a result of the merger with TWPG; and (3) increased equity underwriting sales credits. The decrease in net revenues from the record first quarter of 2011 was primarily attributable to a decrease in commissions and principal transactions revenues as a result of lower trading volumes.

•         The Private Client Group reported net revenues of $213.5 million, a 12% increase compared with the second quarter of 2010 and a 7% decrease compared with the first quarter of 2011.

•         Stifel Bank reported net revenues of $12.1 million, a 36% increase compared with the second quarter of 2010 and a 36% increase compared with the first quarter of 2011.

Institutional Group

For the quarter ended June 30, 2011, the Institutional Group segment generated pre-tax operating income of $22.0 million, compared with $30.8 million in the second quarter of 2010 and $21.4 million in the first quarter of 2011. Net revenues for the quarter were $132.9 million, compared with $124.6 million in the second quarter of 2010 and $127.0 million in the first quarter of 2011. The growth in revenue over the comparable period in 2010 was driven by an increase in investment banking revenues, which was primarily related to improved equity capital market conditions and contributions as a result of the merger with TWPG. The increase in activity was offset by a decline in fixed income and equity institutional brokerage revenues, which was negatively impacted by the challenging market conditions present during the first half of 2011 and lower industry-wide volumes. The decrease in net revenues from the first quarter of 2011 was primarily attributable to a decrease in institutional brokerage revenues, offset by an increase in advisory fees and equity and, to a lesser extent, fixed income capital raising revenues.

³ A reconciliation of the company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

2

Institutional brokerage revenues were $73.2 million, a 17% decrease compared with the second quarter of 2010 and a 19% decrease compared with the first quarter of 2011.

•         Equity institutional brokerage revenues were $41.7 million, a 6% decrease compared with the second quarter of 2010 and a 20% decrease compared with the first quarter of 2011.

•         Fixed income institutional brokerage revenues were $31.5 million, a 29% decrease compared with the second quarter of 2010 and an 18% decrease compared with the first quarter of 2011.

Investment banking revenues were $58.0 million, a 62% increase compared with the second quarter of 2010 and a 65% increase compared with the first quarter of 2011.

•         Equity capital raising revenues were $28.0 million, a 35% increase compared with the second quarter of 2010 and a 22% increase compared with the first quarter of 2011.

•         Fixed income capital raising revenues were $5.2 million, a 17% increase compared with the second quarter of 2010 and a 70% increase compared with the first quarter of 2011.

•         Equity advisory fee revenues were $22.9 million, a 149% increase compared with the second quarter of 2010, and a 173% increase compared with the first quarter of 2011.

•         Fixed income advisory fee revenues were $1.9 million, a 44% increase compared with the second quarter of 2010 and a 184% increase compared with the first quarter of 2011.

Consolidated Compensation and Benefits Expenses

For the quarter ended June 30, 2011, compensation and benefits expenses was $229.9 million, which included $2.0 million of merger-related expenses, increased 6% compared with the second quarter of 2010, and decreased 1% compared with the first quarter of 2011. The increase in compensation and benefits expenses from the comparable period in 2010 is primarily due to increased revenue production and profitability. The decrease from the first quarter of 2011 is primarily attributable to a decrease in variable compensation as a result of lower revenues.

Excluding merger-related expenses, compensation and benefits as a percentage of net revenues was 64%⁴ compared with 65%⁴ in the second quarter of 2010 and 63%⁴ in the first 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 second quarter of 2011 compared with 6% in the second quarter of 2010 and 5% in the first quarter of 2011.

Consolidated Non-Compensation Operating Expenses

For the quarter ended June 30, 2011, non-compensation operating expenses of $125.0 million, which included $41.8 million of litigation-related charges and $1.3 million of merger-related expenses, increased 66% compared with the second quarter of 2010 and increased 48% compared with the first quarter of 2011. Excluding legal and merger-related expenses, non-compensation operating expenses were $81.9 million for the second quarter of 2011, a 12% increase compared with the second quarter of 2010 and consistent with the first quarter of 2011. The increase in non-compensation operating expenses from the comparable period in 2010 is primarily due to increased variable expenses associated with revenue growth and an increase in expenses as a result of the merger with TWPG.

Excluding legal and merger-related expenses, non-compensation operating expenses as a percentage of net revenues for the quarter ended June 30, 2011 was 23%⁴ compared with 22%⁴ in the second quarter of 2010 and 22%⁴ in the first quarter of 2011.

Provision for Income Taxes

The effective income tax rate for the quarter ended June 30, 2011 was 12% compared with 41% for the comparable period in 2010 and 38% for the first quarter of 2011.

⁴ A reconciliation of the company's GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

3

Statement of Financial Condition (Unaudited)

Total assets increased 34% to $4.5 billion as of June 30, 2011 from $3.4 billion as of June 30, 2010. The increase is primarily attributable to growth of the company's bank subsidiary, which has grown its balance sheet to $1.8 billion as of June 30, 2011 from $1.4 billion as of June 30, 2010. As of June 30, 2011, Stifel Bank's investment portfolio of $1.1 billion has increased 45% from June 30, 2010, with over 75% of the investment portfolio is comprised of agency mortgage-backed securities. The increase in total assets is also attributable to the assets acquired in the merger with TWPG. In addition to the net assets acquired in the merger with TWPG, the company recorded goodwill and intangible assets of $153.1 million. 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 June 30, 2011 increased $369.4 million, or 40%, to $1.3 billion from $927.1 million as of June 30, 2010. The increase is primarily attributable to the issuance of stock upon the completion of the merger with TWPG and the cumulative impact of the previously announced modification of the deferred compensation plan of $73.9 million after-tax, offset by the repurchase of $71.2 million, or 2.4 million shares⁵, of the company's common stock pursuant to existing Board repurchase authorizations since June 30, 2010. Book value per share was $24.50 at June 30, 2011.

As of June 30, 2011, the company reported total securities owned and investments at fair value of $1.9 billion, which included securities categorized as Level 3 of $175.7 million. The company's Level 3 assets include auction rate securities with a fair value of $118.4 million as of June 30, 2011.

Non-GAAP Financial Measures

The company utilized non-GAAP calculations of presented net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share as an additional measure to aid in understanding and analyzing the company's financial results for the three and six months ended June 30, 2011 and 2010 and the three months ended March 31, 2011. Specifically, the company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the company's core operating results and business outlook. The company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the company's results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance. These non-GAAP amounts exclude litigation-related expenses associated with the civil lawsuit and related regulatory investigation in connection with the ongoing matter with five Southeastern Wisconsin school districts and certain compensation and non-compensation operating expenses associated with the merger of TWPG.

A limitation of utilizing these non-GAAP measures of net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expenses ratios, pre-tax margin and diluted earnings per share is that the GAAP accounting effects of these merger-related charges do in fact reflect the underlying financial results of the company's business and these effects should not be ignored in evaluating and analyzing its financial results. Therefore, the company believes that GAAP measures of net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share and the same respective non-GAAP measures of the company's financial performance should be considered together.

⁵ Share information has been retroactively adjusted to reflect the April 2011 three-for-two stock split.

4

The following tables provide details with respect to reconciling net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and benefits and non-compensation operating expense ratios, pre-tax margin and diluted earnings per share on a GAAP basis for the three and six months ended June 30, 2011 and 2010 and the three months ended March 31, 2011 to the aforementioned expenses on a non-GAAP basis for the same periods.

Reconciliation of GAAP to Non-GAAP Earnings (Unaudited)
(in thousands, except per share amounts)
	Three Months Ended June 30, 2011									Six Months Ended June 30, 2010
	GAAP			Non-core 6			Non-GAAP			GAAP			Non-core 6			Non-GAAP
Net revenues	$	358,857		$	106		$	358,963		$	725,470		$	112		$	725,582
Non-interest expenses:
Compensation and benefits		229,939			(1,966	)		227,973			461,105			(1,722	)		459,383
Other non-interest expenses		125,043			(43,109	)		81,934			209,806			(45,814	)		163,992
Total non-interest expenses		34,982			(45,075	)		309,907			670,911			(47,536	)		623,375
Income before income taxes		3,875			45,181			49,056			54,559			47,648			102,207
Provision for income taxes		459			17,281			17,740			19,745			18,220			37,965
Net income	$	3,416		$	27,900		$	31,316		$	34,814		$	29,428		$	64,242
Earnings per share:
Diluted	$	0.05					$	0.50		$	0.55					$	1.02
As a percentage of net revenues:
Compensation and benefits		64.1	%					63.5	%		63.6	%					63.3	%
Other non-interest expenses		34.8	%					22.8	%		28.9	%					22.6	%
Income before income taxes		1.1	%					13.7	%		7.5	%					14.1	%

Reconciliation of GAAP to Non-GAAP Earnings (Unaudited)
(in thousands, except per share amounts)
	Three Months Ended June 30, 2010									Six Months Ended June 30, 2010
	GAAP			Non-core 6			Non-GAAP			GAAP			Non-core 6			Non-GAAP
Net revenues	$	328,009		$	-		$	328,009		$	640,039		$	-		$	640,039
Non-interest expenses:
Compensation and benefits		216,907			(3,119	)		213,788			423,149			(3,119	)		420,030
Other non-interest expenses		75,157			(1,906	)		73,251			141,380			(1,908	)		139,472
Total non-interest expenses		292,064			(5,025	)		287,039			564,529			(5,027	)		559,502
Income before income taxes		35,945			5,025			40,970			75,510			5,027			80,537
Provision for income taxes		14,836			2,074			16,910			30,661			2,041			32,702
Net income	$	21,109		$	2,951		$	24,060		$	44,849		$	2,986		$	47,835
Earnings per share: 7
Diluted	$	0.40					$	0.46		$	0.85					$	0.91
As a percentage of net revenues:
Compensation and benefits		66.1	%					65.2	%		66.1	%					65.6	%
Other non-interest expenses		22.9	%					22.3	%		22.1	%					21.8	%
Income before income taxes		11.0	%					12.5	%		11.8	%					12.6	%

⁶ Non-core items for the three and six months ended June 30, 2011 include litigation-related expenses associated with the civil lawsuit and related regulatory investigation in connection with the ongoing matter with five Southeastern Wisconsin school districts and certain merger-related expenses related to the merger with TWPG. Non-core items for the three and six months ended June 30, 2010 include certain merger-related expenses related to the merger with TWPG.

⁷ Per share information has been retroactively adjusted to reflect the April 2011 three-for-two stock split.

5

Reconciliation of GAAP to Non-GAAP Earnings (Unaudited)
(in thousands, except per share amounts)
	Three Months Ended March 31, 2011
	GAAP			Non-core 8			Non-GAAP
Net revenues	$	366,613		$	6		$	366,619
Non-interest expenses:
Compensation and benefits		231,166			244			231,410
Non-compensation operating expenses		84,763			(2,705	)		82,058
Total non-interest expenses		315,929			(2,461	)		313,468
Income before income taxes		50,684			2,467			53,151
Provision for income taxes		19,286			939			20,225
Net income	$	31,398		$	1,528		$	32,926
Earnings per share:
Diluted	$	0.50					$	0.52
As a percentage of net revenues:
Compensation and benefits		63.1	%					63.1	%
Non-compensation operating expenses		23.1	%					22.4	%
Income before income taxes		13.8	%					14.5	%

⁸ Non-core items for the three months ended March 31, 2011 include certain merger-related expenses related to the merger with TWPG.

6

Conference Call Information

Stifel Financial Corp. will host its second quarter 2011 financial results conference call on Monday, August 8, 2011, 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 (888) 676-3684 and referencing conference ID #87862307. 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 holding company headquartered in St. Louis, Missouri that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel clients are primarily served in the U.S. through 314 offices in 44 states, and the District of Columbia through Stifel, Nicolaus & Company, Incorporated and Thomas Weisel Partners LLC, and in Canada through Stifel Nicolaus Canada Inc. Clients in the United Kingdom and Europe are served through offices of Stifel Nicolaus Limited and Stifel Nicolaus Europe Limited (formerly Thomas Weisel Partners International Limited). Each of the 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. To learn more about Stifel, 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.

7

Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in thousands, except per share amounts)	6/30/11		6/30/10		% Change			3/31/11		% Change			6/30/11		6/30/10		% Change
Revenues:
Commissions	$	138,315	$	103,634		33.5		$	155,786		(11.2	)	$	294,101	$	208,669		40.9
Principal transactions		79,741		122,923		(35.1	)		92,859		(14.1	)		172,600		240,343		(28.2	)
Investment banking		64,418		41,252		56.2			41,418		55.5			105,836		75,473		40.2
Asset management		56,981		44,138		29.1			57,680		(1.2	)		114,661		85,241		34.5
Other income		4,556		3,757		21.3			6,256		(27.2	)		10,812		5,702		89.6
Operating revenues		344,011		315,704		9.0			353,999		(2.8	)		698,010		615,428		13.4
Interest revenue		21,229		14,654		44.9			18,856		12.6			40,085		29,301		36.8
Total revenues		365,240		330,358		10.6			372,855		(2.0	)		738,095		644,729		14.5
Interest expense		6,383		2,349		171.7			6,242		2.3			12,625		4,690		169.2
Net revenues		358,857		328,009		9.4			366,613		(2.1	)		725,470		640,039		13.3
Non-interest expenses:
Compensation and benefits		229,939		216,907		6.0			231,166		(0.5	)		461,105		423,149		9.0
Occupancy and equipment rental		29,723		26,595		11.8			29,325		1.4			59,048		51,453		14.8
Communications and office supplies		18,515		15,925		16.3			18,845		(1.8	)		37,360		30,343		23.1
Commission and floor brokerage		6,894		5,272		30.8			6,649		3.7			13,543		11,016		22.9
Other operating expenses		69,911		27,365		155.5			29,944		133.5			99,855		48,568		105.6
Total non-interest expenses		354,982		292,064		21.5			315,929		12.4			670,911		564,529		18.8
Income before income taxes		3,875		35,945		(89.2	)		50,684		(92.4	)		54,559		75,510		(27.7	)
Provision for income taxes		459		14,836		(96.9	)		19,286		(97.6	)		19,745		30,661		(35.6	)
Net income	$	3,416	$	21,109		(83.8	)	$	31,398		(89.1	)	$	34,814	$	44,849		(22.4	)
Earnings per share: 9
Basic	$	0.06	$	0.46		(87.0	)	$	0.60		(90.0	)	$	0.66	$	0.97		(32.0	)
Diluted	$	0.05	$	0.40		(87.5	)	$	0.50		(90.0	)	$	0.55	$	0.85		(35.3	)
Weighted average number of common shares outstanding: 10
Basic		52,932		46,257		14.4			52,534		0.8			52,734		46,168		14.2
Diluted		63,245		52,351		20.8			63,179		0.1			63,239		52,459		20.5

(in thousands, except per share, employee and location amounts)
	6/30/11		6/30/10		% Change	3/31/11		% Change
Statistical Information:
Book value per share 9	$	24.50	$	20.01	22.4	$	24.32	0.7
Financial advisors 10		1,958		1,916	2.2		1,947	0.6
Full-time associates		4,938		4,587	7.7		4,916	0.4
Locations		314		301	4.3		311	1.0
Total client assets	$	116,174,000	$	92,423,000	25.7	$	115,284,000	0.8

⁹ Per share and share information for the three and six months ended June 30, 2010 has been retroactively adjusted to reflect the April 2011 three-for-two stock split.

¹⁰ Includes 160, 167 and 160 independent contractors at June 30, 2011 and 2010 and March 31, 2011, respectively.

8

Global Wealth Management Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/11		6/30/10		% Change			3/31/11		% Change			6/30/11		6/30/10		% Change
Revenues:
Commissions	$	93,593	$	79,521		17.7		$	101,762		(8.0	)	$	195,355	$	159,108		22.8
Principal transactions		51,263		58,675		(12.6	)		56,163		(8.7	)		107,426		118,546		(9.4	)
Asset management and service fees		56,817		43,777		29.8			57,530		(1.2	)		114,347		84,671		35.0
Net interest		13,401		11,506		16.5			11,169		20.0			24,570		22,540		9.0
Investment banking		6,411		5,494		16.7			6,312		1.6			12,723		10,796		17.8
Other income		4,160		967		330.2			5,510		(24.5	)		9,670		3,700		161.4
Net revenues		225,645		199,940		12.9			238,446		(5.4	)		464,091		399,361		16.2
Non-interest expenses:
Compensation and benefits		132,952		123,609		7.6			142,586		(6.8	)		275,538		248,347		10.9
Non-compensation operating expenses		37,267		35,890		3.8			34,388		8.4			71,655		71,415		0.3
Total non-interest expenses		170,219		159,499		6.7			176,974		(3.8	)		347,193		319,762		8.6
Income before income taxes	$	55,426	$	40,441		37.1		$	61,472		(9.8	)	$	116,898	$	79,599		46.9
As a percentage of net revenues:
Compensation and benefits		58.9		61.8					59.8					59.4		62.2
Non-compensation operating expenses		16.5		18.0					14.4					15.4		17.9
Income before income taxes		24.6		20.2					25.8					25.2		19.9

Stifel Bank & Trust (Unaudited)
(in thousands)
	6/30/11			6/30/10			% Change		3/31/11			% Change
Other information:
Assets	$	1,807,859		$	1,392,828		29.8		$	1,787,531		1.1
Investment securities		1,074,114			740,121		45.1			1,190,776		(9.8	)
Retained loans, net		476,764			366,391		30.1			396,244		20.3
Loans held for sale, net		55,110			60,154		(8.4	)		30,866		78.5
Deposits		1,641,079			1,255,292		30.7			1,625,890		0.9
Allowance as a percentage of loans 11		0.68	%		0.53	%				0.63	%
Non-performing assets as a percentage of total assets		0.10	%		0.16	%				0.12	%

¹¹ Excluding acquired loans of $140.6 million, $174.8 million and $146.4 million, the allowance as a percentage of gross loans totaled 0.96%, 1.0% and 1.0% as of June 30, 2011and 2010 and March 31, 2011, respectively.

9

 

Institutional Group Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/11		6/30/10		% Change			3/31/11		% Change			6/30/11		6/30/10		% Change
Revenues:
Commissions	$	44,721	$	24,113		85.5		$	54,025		(17.2	)	$	98,746	$	49,561		99.2
Principal transactions		28,477		64,249		(55.7	)		36,696		(22.4	)		65,173		121,798		(46.5	)
Capital raising		33,172		25,220		31.5			26,046		27.4			59,218		45,224		30.9
Advisory fees		24,835		10,539		135.6			9,060		174.1			33,895		19,453		74.2
Investment banking		58,007		35,759		62.2			35,106		65.2			93,113		64,677		44.0
Other income 12		1,710		481		255.5			1,167		46.5			2,877		1,858		54.8
Net revenues		132,915		124,602		6.7			126,994		4.7			259,909		237,894		9.3
Non-interest expenses:
Compensation and benefits		82,006		72,578		13.0			77,187		6.2			159,193		138,882		14.6
Non-compensation operating expenses		28,958		21,255		36.2			28,414		1.9			57,372		40,787		40.7
Total non-interest expenses		110,964		93,833		18.3			105,601		5.1			216,565		179,669		20.5
Income before income taxes	$	21,951	$	30,769		(28.7	)	$	21,393		2.6		$	43,344	$	58,225		(25.6	)
As a percentage of net revenues:
Compensation and benefits		61.7		58.2					60.8					61.2		58.4
Non-compensation operating expenses		21.8		17.1					22.4					22.1		17.1
Income before income taxes		16.5		24.7					16.8					16.7		24.5

Institutional Group Brokerage & Investment Banking Revenues (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/11		6/30/10		% Change			3/31/11		% Change			6/30/11		6/30/10		% Change
Institutional brokerage:
Equity	$	41,695	$	44,100		(5.5	)	$	52,398		(20.4	)	$	94,093	$	82,751		13.7
Fixed income		31,503		44,262		(28.8	)		38,323		(17.8	)		69,826		88,608		(21.2	)
Institutional brokerage		73,198		88,362		(17.2	)		90,721		(19.3	)		163,919		171,359		(4.3	)
Investment banking:
Capital raising:
Equity		27,999		20,809		34.5			23,005		21.7			51,004		34,897		46.2
Fixed income		5,173		4,411		17.3			3,041		70.1			8,214		10,327		(20.5	)
Capital raising		33,172		25,220		31.5			26,046		27.4			59,218		45,224		30.9
Advisory fees:
Equity		22,924		9,215		148.8			8,387		173.3			31,311		17,700		76.9
Fixed income		1,911		1,324		44.3			673		184.0			2,584		1,753		47.4
Advisory fees		24,835		10,539		135.6			9,060		174.1			33,895		19,453		74.2
Investment banking	$	58,007	$	35,759		62.2		$	35,106		65.2		$	93,113	$	64,677		44.0

# # # # # #

Investor Relations Contact:

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

¹² Includes net interest and other income.

10

EX-99.2

Exhibit 99.2