Exhibit 99.1

 

FOR IMMEDIATE RELEASE

STIFEL FINANCIAL CORP. REPORTS FOURTH QUARTER AND FULL-YEAR 2011 FINANCIAL RESULTS

16^th Consecutive Year of Record Net Revenues

Highlights for the three months ended December 31, 2011:

• Net revenues of $356.9 million.
• Net income of $27.0 million, or $0.43 per diluted share.
• Stockholders’ equity was $1.3 billion and book value per share was $25.10.

Highlights for the year ended December 31, 2011:

• Record net revenues of $1.42 billion; 16^th consecutive year of record net revenues.
• Net income of $84.1 million, or $1.33 per diluted share.

• Non-GAAP net income of $113.6 million¹, or $1.80 per diluted share.

ST. LOUIS, February 15, 2012 – Stifel Financial Corp. (NYSE: SF) today 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, compared with net income of $41.4 million, or $0.65 per diluted share², on net revenues of $401.6 million for the fourth quarter of 2010.

For the year ended December 31, 2011, the Company reported record net revenues of $1.42 billion, which represents the 16th consecutive year of record net revenues. The Company reported net income of $84.1 million, or $1.33 per diluted share, for the year ended December 31, 2011, compared with net income of $1.9 million, or $0.03 per diluted share², on net revenues of $1.38 billion in 2010. On a non-GAAP basis, the Company reported net income of $113.6 million¹, or $1.80 per diluted share, compared with non-GAAP net income of $124.8 million¹, or $2.16 per diluted share² in 2010. A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

“We are pleased to report that 2011 represented our 16th consecutive year of record net revenues. This is significant given continued headwinds and uncertainty in the marketplace, particularly in the second half of the year. We thank our clients for their support and our dedicated employees who strive to distinguish Stifel by providing superior service and execution,” commented Ronald J. Kruszewski, Chairman, President and CEO of Stifel Financial. “Our fourth quarter results mark an improvement from the prior quarter, but are a tough comparison with the record year-ago quarter. Stifel Bank’s growth in assets continue to contribute to our overall results, and investment banking rebounded, particularly in advisory, due to increased activity at year end. Financial advisor recruiting has picked up and we welcomed the Stone & Youngberg associates to our platform during the quarter who made an accretive impact. Looking forward, we remain committed to growing our businesses and are well positioned to take advantage of opportunities.”

Summary Results of Operations (Unaudited)
	Three Months Ended											Year Ended
(in 000s)	12/31/11		12/31/10		% Change			9/30/11		% Change		12/31/11		12/31/10		% Change
Net revenues	$	356,878	$	401,599		(11.1	)	$	334,214		6.8	$	1,416,562	$	1,382,026		2.5
Net income	$	27,016	$	41,394		(34.7	)	$	22,304		21.1	$	84,134	$	1,907		*
Non-GAAP net income 1	$	27,016	$	47,318		(42.9	)	$	22,304		21.1	$	113,562	$	124,760		(9.0	)
Earnings per share: 2
Basic	$	0.52	$	0.81		(35.8	)	$	0.43		20.9	$	1.61	$	0.04		*
Diluted	$	0.43	$	0.65		(33.8	)	$	0.35		22.9	$	1.33	$	0.03		*
Non-GAAP diluted 1	$	0.43	$	0.74		(41.9	)	$	0.35		22.9	$	1.80	$	2.16		(16.7	)
* Not meaningful.

 

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 twelve months ended December 31, 2010 has been adjusted to reflect the April 2011 three-for-two stock split.

Business Segment Results

Summary Segment Results - Core 3 (Unaudited)
	Three Months Ended															Year Ended
(in 000s)	12/31/11			12/31/10			% Change			9/30/11			% Change			12/31/11			12/31/10			% Change
Net revenues:4
Global Wealth Management	$	224,569		$	236,424			(5.0	)	$	219,498			2.3		$	908,158		$	843,269			7.7
Institutional Group		134,229			165,902			(19.1	)		113,259			18.5			507,397			541,839			(6.4	)
Other		(1,920	)		461			(516.5	)		1,457			(231.8	)		1,119			(956	)		217.1
	$	356,878		$	402,787			(11.4	)	$	334,214			6.8		$	1,416,674		$	1,384,152			2.3
Operating contribution:4
Global Wealth Management	$	62,872		$	62,717			0.2		$	55,612			13.1		$	235,382		$	194,023			21.3
Institutional Group		10,773			43,656			(75.3	)		9,152			17.7			63,269			129,535			(51.2	)
Other		(28,619	)		(29,994	)		(4.6	)		(25,741	)		11.2			(112,395	)		(116,587	)		(3.6	)
	$	45,026		$	76,379			(41.0	)	$	39,023			15.4		$	186,256		$	206,971			(10.0	)

 Fourth Quarter

Global Wealth Management

For the quarter ended December 31, 2011, the Global Wealth Management (“GWM”) segment generated pre-tax operating income of $62.9 million, compared with $62.7 million in the fourth quarter of 2010 and $55.6 million in the third quarter of 2011. Net revenues for the quarter were $224.6 million, compared with $236.4 million in the fourth quarter of 2010, and $219.5 million in the third quarter of 2011. The decrease in net revenues from the fourth quarter of 2010 is primarily attributable to a decrease in commissions and principal transactions revenues, as a result of lower trading volumes, offset by increased net interest revenues as a result of the growth of net interest-earning assets at Stifel Bank.

The increase in net revenues from the third quarter of 2011 was primarily attributable to an increase in principal transactions revenues, as a result of higher trading volumes and an increase in net interest revenues as a result of the growth of net interest-earning assets at Stifel Bank, offset by a decrease in commission revenues.

• The Private Client Group reported net revenues of $205.1 million, a 10% decrease compared with the fourth quarter of 2010 and a 2% increase compared with the third quarter of 2011.

• Stifel Bank reported net revenues of $19.5 million, a 99% increase compared with the fourth quarter of 2010 and an 11% increase compared with the third quarter of 2011.

Institutional Group

For the quarter ended December 31, 2011, the Institutional Group segment generated pre-tax operating income of $10.8 million, compared with $43.7 million in the fourth quarter of 2010 and $9.2 million in the third quarter of 2011. Net revenues for the quarter were $134.2 million, compared with $165.9 million in the fourth quarter of 2010 and $113.3 million in the third quarter of 2011. The decrease in net revenues from the fourth quarter of 2010 was driven by a decline in equity capital raising revenues and advisory fees, which were negatively impacted by the challenging market conditions during the fourth quarter of 2011 and lower industry-wide volumes. The increase in net revenues from the third quarter of 2011 was primarily attributable to an increase in advisory fees and, to a lesser extent, to an increase in fixed income capital raising and fixed income institutional brokerage revenues associated with the contributions from Stone & Youngberg, which was acquired on October 1, 2011. Those increases were offset by decreases in equity institutional brokerage and equity capital raising revenues.

 

³ GAAP and Core results are the same for the three months ended December 31, 2011 and September 30, 2011.

⁴ 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 $80.3 million, a 3% decrease compared with the fourth quarter of 2010 and a 2% increase compared with the third quarter of 2011.

• Equity brokerage revenues were $40.6 million, a 13% decrease compared with the fourth quarter of 2010 and a 14% decrease compared with the third quarter of 2011.

• Fixed income brokerage revenues were $39.7 million, a 10% increase compared with the fourth quarter of 2010 and a 25% increase compared with the third quarter of 2011.

Investment banking revenues were $52.1 million, a 36% decrease compared with the fourth quarter of 2010 and a 53% increase compared with the third quarter of 2011.

• Equity capital raising revenues were $10.1 million, a 71% decrease compared with the fourth quarter of 2010 and a 38% decrease compared with the third quarter of 2011.

• Fixed income capital raising revenues were $13.2 million, a 113% increase compared with the fourth quarter of 2010 and a 162% increase compared with the third quarter of 2011.

• Equity advisory fee revenues were $25.7 million, a 33% decrease compared with the fourth quarter of 2010, and a 135% increase compared with the third quarter of 2011.

• Fixed income advisory fee revenues were $3.1 million, a 9% increase compared with the fourth quarter of 2010 and a 94% increase compared with the third quarter of 2011.

Consolidated Compensation and Benefits Expenses

For the quarter ended December 31, 2011, compensation and benefits expenses were $228.7 million, compared with $237.1 million in the fourth quarter of 2010 and $210.6 million in the third quarter of 2011.

Compensation and benefits as a percentage of net revenues was 64% in the fourth quarter of 2011 compared with 59% in the fourth quarter of 2010 and 63% in the third 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 fourth quarter of 2011 compared with 3% in the fourth quarter of 2010 and 5% in the third quarter of 2011.

Consolidated Non-Compensation Operating Expenses

For the quarter ended December 31, 2011, non-compensation operating expenses were $83.1 million, compared with $97.7 million in the fourth quarter of 2010, which included $8.6 million of merger-related expenses. Non-compensation operating expenses for the third quarter of 2011 were $84.6 million.

Non-compensation operating expenses as a percentage of net revenues for the quarter ended December 31, 2011 was 23% compared with 24% in the fourth quarter of 2010 and 25% in the third quarter of 2011. 

 

Provision for Income Taxes

The effective income tax rate for the quarter ended December 31, 2011 was 40% compared with 38% for the comparable period in 2010 and 43% in the third quarter of 2011.

Full-Year 2011

Global Wealth Management

For the year ended December 31, 2011, the GWM segment generated pre-tax operating income of $235.4 million, a 21% increase compared with $194.0 million in 2010. Net revenues for the year ended December 31, 2011 were $908.2 million, an 8% increase compared with $843.3 million in 2010. The increase in net revenues from 2010 is primarily attributable to: (1) higher commission 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 and market performance gains; and (3) increased net interest revenues as a result of the growth of net interest-earning assets at Stifel Bank. The increase in net revenues from 2010 was offset by a decrease in principal transactions revenues, as a result of lower trading volumes.

 

• The Private Client Group reported record net revenues of $850.1 million, a 6% increase compared to $804.7 million in 2010.

• Stifel Bank reported net revenues of $58.1 million, a 50% increase compared to $38.6 million in 2010.

3

Institutional Group

For the year ended December 31, 2011, the Institutional Group segment generated pre-tax operating income of $63.3 million, a 51% decrease compared with $129.5 million in 2010. Net revenues for the year were $507.4 million, a 6% decrease compared with $541.8 million in 2010. The decrease in net revenues from 2010 was driven by a decline in fixed income institutional brokerage, advisory fees, and equity capital raising revenues, which were negatively impacted by the challenging market conditions during 2011 and lower industry-wide capital raising volumes.

Institutional brokerage revenues were $323.3 million, a 5% decrease compared with $341.5 million in 2010.

• Equity institutional brokerage revenues were $181.9 million, a 5% increase compared to $173.0 million in 2010.

• Fixed income institutional brokerage revenues were $141.4 million, a 16% decrease compared to $168.5 million in 2010.

Investment banking revenues were $179.1 million, a 7% decrease compared with $191.9 million in 2010.

• Equity capital raising revenues were $77.5 million, an 11% decrease compared to $87.4 million in 2010.

• Fixed income capital raising revenues were $26.5 million, a 26% increase compared to $21.1 million in 2010.

• Equity advisory fee revenues were $67.9 million, an 11% decrease compared to $76.1 million in 2010.

• Fixed income advisory fee revenues were $7.2 million, a 2% decrease compared to $7.3 million in 2010.

Consolidated Compensation and Benefits Expenses

For the year ended December 31, 2011, compensation and benefits expenses of $900.4 million, which included $1.7 million of merger-related expenses, decreased 15% compared with $1.1 billion in 2010, which included $186.1 million related to the modification of the Company’s deferred compensation plan and merger-related expenses. Excluding the merger-related expenses and charges for the modification of the Company’s deferred compensation plan, compensation and benefits expenses for 2011 increased 3% compared to 2010. Excluding these charges, compensation and benefits as a percentage of net revenues was 63%⁵, which was consistent with 2010.

Transition pay as a percentage of net revenues was 5% for the year ended December 31, 2011 compared with 6% in 2010.

Consolidated Non-Compensation Operating Expenses

For the year ended December 31, 2011, non-compensation operating expenses of $377.5 million, which included $45.8 million of litigation-related charges and merger-related expenses, increased 16% compared with $326.1 million in 2010, which included $19.0 million of merger-related expenses. Excluding litigation-related charges and merger-related expenses, non-compensation operating expenses increased 8% compared to 2010. The increase in non-compensation operating expenses is primarily attributable to an increase in other operating expenses, in addition to higher occupancy and equipment, and communication and office supplies expenses as a result of an increase in headcount and related new offices. Excluding the litigation-related charges and merger-related expenses, non-compensation operating expenses as a percentage of net revenues was 24%⁵ compared with 22%⁵ in 2010.

Provision for Income Taxes

For the year ended December 31, 2011, our provision for income taxes was $54.5 million, representing an effective tax rate of 39.3%, compared to a benefit of $2.1 million in 2010. The 2010 provision was impacted by state tax adjustments, a change in the valuation allowance, and an increase in the rate applied to the Company’s deferred tax assets.

 

⁵  A reconciliation of the Company’s GAAP results to these non-GAAP measures is discussed below under “Non-GAAP Financial Measures.”

4

 

Statement of Financial Condition (Unaudited)

Total assets increased 18% to $5.0 billion as of December 31, 2011 from $4.2 billion as of December 31, 2010. The increase is primarily attributable to growth of the Company’s bank subsidiary, which as of December 31, 2011 has grown its assets to $2.3 billion from $1.8 billion as of December 31, 2010. As of December 31, 2011, Stifel Bank’s investment portfolio of $1.4 billion has increased 32% from December 31, 2010, with more than 99% of the investment portfolio comprised of investment grade securities, of which more than 64% 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. The Company has no exposure to non-U.S. sovereign debt.

Total stockholders’ equity as of December 31, 2011 increased $48.2 million, or 4%, to $1.3 billion. Book value per share was $25.10 as of December 31, 2011. The Company repurchased $48.5 million, or 1.7 million shares⁶, of its common stock pursuant to existing Board repurchase authorizations during the year ended December 31, 2011.

As of December 31, 2011, the Company reported total securities owned and investments at fair value of $1.9 billion, which included securities categorized as Level 3 of $234.6 million. The Company’s Level 3 assets included auction rate securities (“ARS”) and private equity and other fixed income securities with fair values of $181.8 million and $52.8 million, respectively, as of December 31, 2011. The Company completed the final phase of the previously announced modified ARS repurchase plan during the fourth quarter of 2011. For the year ended December 31, 2011, the Company repurchased ARS of $48.7 million par value.

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 twelve months ended December 31, 2011 and the three and twelve months ended December 31, 2010. 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, compensation expense related to the acceleration of deferred compensation as a result of the modification of the Company’s deferred compensation plan 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.

 

⁶  Share information has been adjusted to reflect the April 2011 three-for-two stock split.

5

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 year ended December 30, 2011 and the three and twelve months ended December 31, 2010 to the aforementioned results 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 December 31, 2011								Year Ended December 31, 2011
	GAAP			Non-core		Non-GAAP			GAAP			Non-core7			Non-GAAP
Net revenues	$	356,878		$	—	$	356,878		$	1,416,562		$	112		$	1,416,674
Non-interest expenses:
Compensation and benefits		228,743			—		228,743			900,421			(1,722	)		898,699
Non-compensation operating expenses		83,109			—		83,109			377,533			(45,814	)		331,719
Total non-interest expenses		311,852			—		311,852			1,277,954			(47,536	)		1,230,418
Income before income taxes		45,026			—		45,026			138,608			47,648			186,256
Provision for income taxes		18,010			—		18,010			54,474			18,220			72,694
Net income	$	27,016		$	—	$	27,016		$	84,134		$	29,428		$	113,562
Earnings per share:
Diluted	$	0.43				$	0.43		$	1.33					$	1.80
As a percentage of net revenues:
Compensation and benefits		64.1	%				64.1	%		63.6	%					63.4	%
Non-compensation operating expenses		23.3	%				23.3	%		26.6	%					23.5	%
Income before income taxes		12.6	%				12.6	%		9.8	%					13.1	%

 

	Reconciliation of GAAP to Non-GAAP Earnings (Unaudited)
	(in thousands, except per share amounts)
	Three Months Ended December 31, 2010									Year Ended December 31, 2010
	GAAP			Non-core7			Non-GAAP			GAAP			Non-core7			Non-GAAP
Net revenues	$	401,599		$	1,188		$	402,787		$	1,382,026		$	2,126		$	1,384,152
Non-interest expenses:
Compensation and benefits		237,117			242			237,359			1,056,202			(186,053	)		870,149
Non-compensation operating expenses		97,665			(8,616	)		89,049			326,053			(19,021	)		307,032
Total non-interest expenses		334,782			(8,374	)		326,408			1,382,255			(205,074	)		1,177,181
Income/(loss) before income taxes		66,817			9,562			76,379			(229	)		207,200			206,971
Provision for income taxes/(benefit)		25,423			3,638			29,061			(2,136	)		84,347			82,211
Net income	$	41,394		$	5,924		$	47,318		$	1,907		$	122,853		$	124,760
Earnings per share:8
Diluted	$	0.65					$	0.74		$	0.03					$	2.16
As a percentage of net revenues:
Compensation and benefits		59.0	%					58.9	%		76.4	%					62.9	%
Non-compensation operating expenses		24.4	%					22.1	%		23.6	%					22.1	%
Income/(loss) before income taxes		16.6	%					19.0	%		0.0	%					15.0	%

 

7 Non-core items for the year ended December 31, 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 twelve months ended December 31, 2010 include certain merger-related expenses related to the merger with TWPG.

 

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

6

 

Conference Call Information

Stifel Financial Corp. will host its fourth quarter and fiscal year 2011 financial results conference call on Wednesday, February 15, 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 #51663538. 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 and Thomas Weisel Partners LLC 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.

7

Summary Results of Operations (Unaudited)
	Three Months Ended												Year Ended
(in thousands, except per share amounts)	12/31/11		12/31/10		% Change			9/30/11		% Change			12/31/11		12/31/10			% Change
Revenues:
Commissions	$	123,737	$	139,605		(11.4	)	$	143,243		(13.6	)	$	561,081	$	445,260			26.0
Principal transactions		93,963		89,996		4.4			76,650		22.6			343,213		453,533			(24.3	)
Asset management		55,920		57,042		(2.0	)		58,253		(4.0	)		228,834		193,159			18.5
Investment banking		56,075		90,975		(38.4	)		37,673		48.8			199,584		218,104			(8.5	)
Other income		8,379		10,497		(20.2	)		540		*			19,731		19,855			(0.6	)
Operating revenues		338,074		388,115		(12.9	)		316,359		6.9			1,352,443		1,329,911			1.7
Interest revenue		25,220		18,307		37.8			24,161		4.4			89,466		65,326			37.0
Total revenues		363,294		406,422		(10.6	)		340,520		6.7			1,441,909		1,395,237			3.3
Interest expense		6,416		4,823		33.0			6,306		1.7			25,347		13,211			91.9
Net revenues		356,878		401,599		(11.1	)		334,214		6.8			1,416,562		1,382,026			2.5
Non-interest expenses:
Compensation and benefits		228,743		237,117		(3.5	)		210,573		8.6			900,421		1,056,202			(14.7	)
Occupancy and equipment rental		31,967		34,730		(8.0	)		30,914		3.4			121,929		115,742			5.3
Communications and office supplies		19,391		19,709		(1.6	)		18,838		2.9			75,589		69,929			8.1
Commission and floor brokerage		6,097		7,313		(16.6	)		7,400		(17.6	)		27,040		26,301			2.8
Other operating expenses		25,654		35,913		(28.6	)		27,466		(6.6	)		152,975		114,081			34.1
Total non-interest expenses		311,852		334,782		(6.8	)		295,191		5.6			1,277,954		1,382,255			(7.5	)
Income/(loss) before income taxes		45,026		66,817		(32.6	)		39,023		15.4			138,608		(229	)		*
Provision for income taxes/(benefit)		18,010		25,423		(29.2	)		16,719		7.7			54,474		(2,136	)		*
Net income	$	27,016	$	41,394		(34.7	)	$	22,304		21.1		$	84,134	$	1,907			*
Earnings per share:9
Basic	$	0.52	$	0.81		(35.8	)	$	0.43		20.9		$	1.61	$	0.04			*
Diluted	$	0.43	$	0.65		(33.8	)	$	0.35		22.9		$	1.33	$	0.03			*
Weighted average number of common shares outstanding:9
Basic		51,849		51,268		1.1			52,367		(1.0	)		52,418		48,723			7.6
Diluted		62,695		63,700		(1.6	)		63,152		(0.7	)		63,058		57,672			9.3
* Not meaningful.

(in thousands, except per share, employee and location amounts)
	12/31/11		12/31/10		% Change		9/30/11		% Change
Statistical Information:
Book value per share9	$	25.10	$	24.42		2.8	$	24.48		2.5
Financial advisors10		1,987		1,935		2.7		1,961		1.3
Full-time associates		5,097		4,906		3.9		4,942		3.1
Locations		320		312		2.6		313		2.2
Total client assets	$	119,362,000	$	110,593,000		7.9	$	107,693,000		10.8

 

 

⁹  Per share and share information for the three and twelve months ended December 31, 2010 has been adjusted to reflect the April 2011 three-for-two stock split.

 

¹⁰  Includes 154, 160 and 160 independent contractors at December 31, 2011 and 2010 and September 30, 2011, respectively.

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Global Wealth Management Summary Results of Operations (Unaudited)
	Three Months Ended												Year Ended
(in 000s)	12/31/11		12/31/10		% Change			9/30/11		% Change			12/31/11		12/31/10		% Change
Revenues:
Commissions	$	83,662	$	92,558		(9.6	)	$	92,029		(9.1	)	$	371,046	$	321,541		15.4
Principal transactions		53,700		58,520		(8.2	)		48,836		10.0			209,962		239,851		(12.5	)
Asset management and service fees		55,691		56,953		(2.2	)		58,007		(4.0	)		228,045		192,073		18.7
Net interest		17,602		10,277		71.3			15,016		17.2			57,188		44,834		27.6
Investment banking		4,015		5,015		(19.9	)		3,737		7.4			20,475		22,768		(10.1	)
Other income		9,899		13,101		(24.4	)		1,873		428.5			21,442		22,202		(3.4	)
Net revenues		224,569		236,424		(5.0	)		219,498		2.3			908,158		843,269		7.7
Non-interest expenses:
Compensation and benefits		125,053		136,009		(8.1	)		128,244		(2.5	)		528,835		503,456		5.0
Non-compensation operating expenses		36,644		37,698		(2.8	)		35,642		2.8			143,941		145,790		(1.3	)
Total non-interest expenses		161,697		173,707		(6.9	)		163,886		(1.3	)		672,776		649,246		3.6
Income before income taxes	$	62,872	$	62,717		0.2		$	55,612		13.1		$	235,382	$	194,023		21.3
As a percentage of net revenues:
Compensation and benefits		55.7		57.5					58.4					58.2		59.7
Non-compensation operating expenses		16.3		16.0					16.3					15.8		17.3
Income before income taxes		28.0		26.5					25.3					26.0		23.0

Stifel Bank & Trust (Unaudited)
(in thousands)
	12/31/11					12/31/10		% Change		9/30/11		% Change
Other information:
Assets		$	2,275,729		$	1,773,270		28.3	$	2,311,371		(1.5	)
Investment securities			1,403,552			1,065,354		31.7		1,311,680		(4.6	)
Retained loans, net			631,173			388,265		62.6		567,341		11.3
Loans held for sale, net			131,754			86,344		52.6		114,452		15.1
Deposits			2,071,738			1,623,568		27.6		2,210,763		(2.3	)
Allowance as a percentage of loans11			0.83	%		0.60	%			0.67	%
Non-performing assets as a percentage of total assets			0.14	%		0.18	%			0.08	%

 

¹¹ Excluding acquired loans of $124.2 million, $155.7 million and $134.4 million, the allowance as a percentage of gross loans totaled 1.03%, 0.99% and 0.88% as of December 31, 2011 and 2010 and September 30, 2011, respectively.

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Institutional Group Summary Results of Operations (Unaudited)
	Three Months Ended												Year Ended
(in 000s)	12/31/11		12/31/10		% Change			9/30/11		% Change			12/31/11		12/31/10		% Change
Revenues:
Commissions	$	40,076	$	47,047		(14.8	)	$	51,214		(21.7	)	$	190,036	$	123,719		53.6
Principal transactions		40,263		35,564		13.2			27,815		44.8			133,251		217,770		(38.8	)
Capital raising		23,331		40,674		(42.6	)		21,436		8.8			103,985		108,473		(4.1	)
Advisory fees		28,728		40,909		(29.8	)		12,500		129.8			75,123		83,425		(10.0	)
Investment banking		52,059		81,583		(36.2	)		33,936		53.4			179,108		191,898		(6.7	)
Other income12		1,831		1,708		7.2			294		522.8			5,002		8,452		(40.8	)
Net revenues		134,229		165,902		(19.1	)		113,259		18.5			507,397		541,839		(6.4	)
Non-interest expenses:
Compensation and benefits		89,497		94,300		(5.1	)		74,813		19.6			323,503		315,329		2.6
Non-compensation operating expenses		33,959		27,946		21.5			29,294		15.9			120,625		96,975		24.4
Total non-interest expenses		123,456		122,246		1.0			104,107		18.6			444,128		412,304		7.7
Income before income taxes	$	10,773	$	43,656		(75.3	)	$	9,152		17.7		$	63,269	$	129,535		(51.2	)
As a percentage of net revenues:
Compensation and benefits		66.7		56.8					66.0					63.8		58.2
Non-compensation operating expenses		25.3		16.9					25.9					23.7		17.9
Income before income taxes		8.0		26.3					8.1					12.5		23.9

Institutional Group Brokerage & Investment Banking Revenues (Unaudited)
	Three Months Ended												Year Ended
(in 000s)	12/31/11		12/31/10		% Change			9/30/11		% Change			12/31/11		12/31/10		% Change
Institutional brokerage:
Equity	$	40,598	$	46,521		(12.7	)	$	47,185		(14.0	)	$	181,876	$	172,983		5.1
Fixed income		39,741		36,090		10.1			31,844		24.8			141,411		168,506		(16.1	)
Institutional brokerage		80,339		82,611		(2.8	)		79,029		1.7			323,287		341,489		(5.3	)
Investment banking:
Capital raising:
Equity		10,109		34,458		(70.7	)		16,382		(38.3	)		77,495		87,415		(11.3	)
Fixed income		13,222		6,216		112.7			5,054		161.5			26,490		21,058		25.8
Capital raising		23,331		40,674		(42.6	)		21,436		8.8			103,985		108,473		(4.1	)
Advisory fees:
Equity		25,680		38,119		(32.6	)		10,930		134.9			67,921		76,100		(10.7	)
Fixed income		3,048		2,790		9.3			1,570		94.3			7,202		7,325		(1.7	)
Advisory fees		28,728		40,909		(29.8	)		12,500		129.8			75,123		83,425		(10.0	)
Investment banking	$	52,059	$	81,583		(36.2	)	$	33,936		53.4		$	179,108	$	191,898		(6.7	)

Investor Relations Contact

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

 

¹² Includes net interest and other income.

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