Exhibit 99.1

FOR IMMEDIATE RELEASE

STIFEL FINANCIAL REPORTS SECOND QUARTER 2012 FINANCIAL RESULTS

Highlights for the three months ended June 30, 2012:

●  Net revenues of $374.4 million.

●  Net income of $26.1 million, or $0.42 per diluted share.

●  Stockholders' equity totaled $1.4 billion and book value per share was $25.63.

Highlights for the six months ended June 30, 2012:

●  Net revenues of $774.7 million increased 7% from the comparable period in 2011.

●  Net income of $60.9 million, or $0.97 per diluted share.

ST. LOUIS, August 8, 2012 -Stifel Financial Corp. (NYSE: SF) today reported unaudited net income of $26.1 million, or $0.42 per diluted share, on net revenues of $374.4 million for the three months ended June 30, 2012, compared with net income of $3.4 million, or $0.05 per diluted share¹, on net revenues of $358.9 million for the second quarter of 2011.

For the six months ended June 30, 2012, the company reported net income of $60.9 million, or $0.97 per diluted share, on net revenues of $774.7 million, compared with net income of $34.8 million, or $0.55 per diluted share1, on net revenues of $725.5 million during the comparable period in 2011.

 "The operating environment in the second quarter was challenging, especially compared with the strong start to the year. The headwinds in the equity and bond markets, as well as macro economic factors affected the industry, our business and client activity. In the quarter, asset management, investment banking advisory and Stifel Bank performed well, while commissions stabilized, and principal transactions and equity capital raising results were lower," commented Ronald J. Kruszewski, Chairman, President and CEO of Stifel Financial. "Throughout this year, we have continued to grow through investments in selected professionals and certain businesses, namely our fixed income platform. We are well positioned with the scale and expertise to gain market share."

Summary Results of Operations (Unaudited)
	Three Months Ended															Six Months Ended
(in 000s)	6/30/12			6/30/11			% Change			3/31/12			% Change			6/30/12		6/30/11		% Change
Net revenues		$	374,407		$	358,857		4.3			$	400,333		(6.5	)	$	774,740	$	725,470		6.8
Net income		$	26,136		$	3,416		*			$	34,773		(24.8	)	$	60,909	$	34,814		75.0
Earnings per share:
Basic		$	0.49		$	0.06		716.7			$	0.65		(24.6	)	$	1.14	$	0.66		72.7
Diluted		$	0.42		$	0.05		740.0			$	0.55		(23.6	)	$	0.97	$	0.55		76.4
Weighted average number of common shares outstanding:
Basic			53,569			52,932		1.2				53,243		0.6			53,406		52,734		1.3
Diluted			62,678			63,245		(0.9	)			62,669		-			62,700		63,239		(0.9	)
* Percentage not meaningful.

1 Included in the results for the three and six months ended June 30, 2011 were the estimated costs of settlement and litigation-related expenses of $27.9 million after tax, or $0.45 per diluted share, and $29.4 million after tax, or $0.47 per diluted share, respectively, associated with the civil lawsuit and related regulatory investigation in connection with the previously disclosed matter involving five Southeastern Wisconsin school districts and merger-related expenses.

1

Business Segment Results

Summary Segment Results (Unaudited)
	Three Months Ended											Six Months Ended
(in 000s)	6/30/12			6/30/11			% Change	3/31/12			% Change	6/30/12		6/30/11			% Change
Net revenues:
Global Wealth Management	$	240,029		$	225,645		6.4	$	248,348		(3.3)	$	488,377	$	464,091		5.2
Institutional Group		135,297			132,915		1.8		148,504		(8.9)		283,801		259,909		9.2
Other		(919	)		297		*		3,481		(126.4)		2,562		1,470		74.3
	$	374,407		$	358,857		4.3	$	400,333		(6.5)	$	774,740	$	725,470		6.8
Operating contribution:
Global Wealth Management	$	61,353		$	55,426		10.7	$	69,178		(11.3)	$	130,531	$	116,898		11.7
Institutional Group		17,546			21,951		(20.1)		23,704		(26.0)		41,250		43,344		(4.8)
Other 2		(35,025	)		(73,502	)	(52.3)		(33,628	)	4.2		(68,653		(105,683	)	(35.0)
	$	43,874		$	3,875		*	$	59,254		(26.0)	$	103,128	$	54,559		89.0
* Percentage not meaningful.

Global Wealth Management

For the quarter ended June 30, 2012, the Global Wealth Management ("GWM") segment generated pre-tax operating income of $61.4 million, compared with $55.4 million in the second quarter of 2011 and $69.2 million in the first quarter of 2012. Net revenues for the quarter were $240.0 million, compared with $225.6 million in the second quarter of 2011, and $248.3 million in the first quarter of 2012. The increase in net revenues over the comparable period in 2011 is primarily attributable to: (1) growth in asset management and service fees as a result of an increase in assets under management and positive gains in market performance; (2) increased net interest revenues as a result of the growth of net interest-earning assets at Stifel Bank; and (3) higher principal transactions revenues, offset by a decrease in commissions revenue. The decrease in net revenues from the first quarter of 2012 was primarily attributable to: (1) a decrease in commissions and principal transactions revenues, as a result of lower trading volumes; and (2) lower sales credits from investment banking underwritings, offset by an increase in asset management and service fees and net interest revenues.

 

●  The Private Client Group reported record net revenues of $221.0 million, a 4% increase compared with the second quarter of 2011 and a 5% decrease compared with the first quarter of 2012.

●  Stifel Bank reported net revenues of $19.0 million, a 57% increase compared with the second quarter of 2011 and a 19% increase compared with the first quarter of 2012.

Institutional Group

For the quarter ended June 30, 2012, the Institutional Group segment generated pre-tax operating income of $17.5 million, compared with $22.0 million in the second quarter of 2011 and $23.7 million in the first quarter of 2012. Net revenues for the quarter were $135.3 million, compared with $132.9 million in the second quarter of 2011 and $148.5 million in the first quarter of 2012. The increase in net revenues from the comparable period in 2011 was driven by: (1) an increase in fixed income capital raising revenues; (2) an increase in advisory fees; and (3) higher fixed income institutional brokerage revenues, offset by a decrease in equity capital raising revenues. The decrease in net revenues from the first quarter of 2012 was primarily attributable to: (1) a decrease in institutional brokerage revenues; and (2) lower equity capital raising revenues, partially offset by an increase in advisory fees and fixed income capital raising revenues.

2 Results for the three and six months ended June 30, 2011 include litigation-related charges and merger-related expenses of $45.1 million pre-tax and $47.5 million pre-tax, respectively.

  

 

2

 

Institutional brokerage revenues were $74.9 million, a 2% increase compared with the second quarter of 2011 and a 16% decrease compared with the first quarter of 2012.

●  Equity brokerage revenues were $38.5 million, a 8% decrease compared with the second quarter of 2011 and a 13% decrease compared with the first quarter of 2012.

●  Fixed income brokerage revenues were $36.4 million, a 16% increase compared with the second quarter of 2011 and a 20% decrease compared with the first quarter of 2012.

Investment banking revenues were $58.8 million, a 1% increase compared with the second quarter of 2011 and an 2% increase compared with the first quarter of 2012.

●  Equity capital raising revenues were $17.7 million, a 37% decrease compared with the second quarter of 2011 and a 44% decrease compared with the first quarter of 2012.

●  Fixed income capital raising revenues were $14.5 million, a 181% increase compared with the second quarter of 2011 and an 35% increase compared with the first quarter of 2012.

●  Advisory fee revenues were $26.6 million, a 7% increase compared with the second quarter of 2011 and a 71% increase compared with the first quarter of 2012.

Consolidated Compensation and Benefits Expenses

For the quarter ended June 30, 2012, compensation and benefits expenses were $239.4 million, compared with $229.9 million in the second quarter of 2011 and $254.7 million in the first quarter of 2012.

Compensation and benefits as a percentage of net revenues was 64% in the second quarter of 2012, consistent with the second quarter of 2011 and the first quarter of 2012. 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 2012, consistent with the second quarter of 2011 and the first quarter of 2012.

Consolidated Non-Compensation Operating Expenses

For the quarter ended June 30, 2012, non-compensation operating expenses were $91.2 million, compared to $125.0 million in the second quarter of 2011, which included $43.1 million of litigation-related charges and merger-related expenses. Non-compensation operating expenses were $86.4 million in the first quarter of 2012.

Excluding litigation and merger-related expenses in the second quarter of 2011, non-compensation operating expenses increased 11% in the second quarter of 2012 compared with the second quarter of 2011 and increased 6% compared with the first quarter of 2012.

Non-compensation operating expenses as a percentage of net revenues for the quarter ended June 30, 2012 was 24% compared with 35%³ in the second quarter of 2011 and 22% in the first quarter of 2012. The higher ratio in the second quarter of 2012 was driven by the impact of increased non-compensation operating expenses on lower revenues.

Provision for Income Taxes

The effective income tax rate for the quarter ended June 30, 2012 was 40% compared with 12% in the second quarter of 2011 and 41% in the first quarter of 2012.

3 Non-compensation operating expenses for the three months ended June 30, 2011 include litigation-related charges and merger-related expenses.

 

 

3

 

Statement of Financial Condition (Unaudited)

Total assets increased 36% to $6.1 billion as of June 30, 2012 from $4.5 billion as of June 30, 2011. The increase is primarily attributable to growth of the company's bank subsidiary, which as of June 30, 2012 has grown its assets to $3.1 billion from $1.8 billion as of June 30, 2011. As of June 30, 2012, Stifel Bank's investment portfolio of $1.8 billion has increased 57% from June 30, 2011, with more than 99% of the investment portfolio comprised of investment grade securities, of which more than 69% were Government-Sponsored Enterprise guaranteed MBS or AAA-rated investments. The company's broker-dealer subsidiary's gross assets and liabilities, including trading inventory, stock loan/borrow, receivables and payables from/to brokers, dealers and clearing organizations and clients, fluctuate with business levels and overall market conditions.

Total stockholders' equity as of June 30, 2012 increased $75.4 million, or 6%, to $1.4 billion from $1.3 billion as of June 30, 2011. Book value per share was $25.63 as of June 30, 2012. The company has repurchased $51.2 million, or 1.8 million shares, of its common stock pursuant to existing Board repurchase authorizations since June 30, 2011.

As of June 30, 2012, the company reported total securities owned and investments at fair value of $2.3 billion, which included securities categorized as Level 3 of $256.2 million. The company's Level 3 assets include auction rate securities and private equity and other fixed income securities with fair values of $175.3 million and $80.9 million, respectively, as of June 30, 2012.

Conference Call Information

Stifel Financial Corp. will host its second quarter 2012 financial results conference call on Wednesday, August 8, 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 #98861040. A live audio webcast of the call, as well as a presentation highlighting the company's results, will be available through the company's web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

Company Information

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

Forward-Looking Statements

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

  

 

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Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in thousands, except per share amounts)	6/30/12		6/30/11		% Change			3/31/12		% Change			6/30/12		6/30/11		% Change
Revenues:
Commissions	$	127,427	$	138,315		(7.9	)	$	123,303		3.3		$	250,730	$	294,101		(14.7	)
Principal transactions		91,564		79,741		14.8			116,233		(21.2	)		207,797		172,600		20.4
Investment banking		67,363		64,418		4.6			70,438		(4.4	)		137,801		105,836		30.2
Asset management and service fees		65,311		56,981		14.6			60,818		7.4			126,129		114,661		10.0
Other income		5,418		4,556		18.9			13,294		(59.2	)		18,712		10,812		73.1
Operating revenues		357,083		344,011		3.8			384,086		(7.0	)		741,169		698,010		6.2
Interest revenue		27,181		21,229		28.0			25,257		7.6			52,438		40,085		30.8
Total revenues		384,264		365,240		5.2			409,343		(6.1	)		793,607		738,095		7.5
Interest expense		9,857		6,383		54.4			9,010		9.4			18,867		12,625		49.4
Net revenues		374,407		358,857		4.3			400,333		(6.5	)		774,740		725,470		6.8
Non-interest expenses:
Compensation and benefits		239,374		229,939		4.1			254,704		(6.0	)		494,078		461,105		7.2
Occupancy and equipment rental		32,320		29,723		8.7			30,791		5.0			63,111		59,048		6.9
Communications and office supplies		20,797		18,515		12.3			20,373		2.1			41,170		37,360		10.2
Commission and floor brokerage		7,747		6,894		12.4			7,612		1.8			15,359		13,543		13.4
Other operating expenses		30,295		69,911		(56.7	)		27,599		9.8			57,894		99,855		(42.0	)
Total non-interest expenses		330,533		354,982		(6.9	)		341,079		(3.1	)		671,612		670,911		0.1
Income before income taxes		43,874		3,875		*			59,254		(26.0	)		103,128		54,559		89.0
Provision for income taxes		17,738		459		*			24,481		(27.5	)		42,219		19,745		113.8
Net income	$	26,136	$	3,416		*		$	34,773		(24.8	)	$	60,909	$	34,814		75.0
Earnings per share:
Basic	$	0.49	$	0.06		716.7		$	0.65		(24.6	)	$	1.14	$	0.66		72.7
Diluted	$	0.42	$	0.05		740.0		$	0.55		(23.6	)	$	0.97	$	0.55		76.4
Weighted average number of common shares outstanding:
Basic		53,569		52,932		1.2			53,243		0.6			53,406		52,734		1.3
Diluted		62,678		63,245		(0.9	)		62,669		-			62,700		63,239		(0.9	)
* Percentage not meaningful.

(in thousands, except per share, employee and location amounts)
	6/30/12		6/30/11		% Change		3/31/12		% Change
Statistical Information:
Book value per share	$	25.63	$	24.50		4.6	$	25.07		2.2
Financial advisors 4		2,028		1,958		3.6		2,016		0.6
Full-time associates		5,196		4,938		5.2		5,138		1.1
Locations		332		314		5.7		326		1.8
Total client assets5	$	137,985,000	$	125,866,000		9.6	$	137,888,000		0.1

4 Includes 156, 160 and 155 independent contractors at June 30, 2012 and 2011 and March  31, 2012, respectively.

5 Includes $10.4 billion of FDIC-insured balances as of June 30, 2012. Prior period amounts have been adjusted to include these balances.
 

5

Global Wealth Management Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/12		6/30/11		% Change			3/31/12		% Change			6/30/12		6/30/11		% Change
Revenues:
Commissions	$	88,423	$	93,593		(5.5	)	$	91,023		(2.9	)	$	179,446	$	195,355		(8.1	)
Principal transactions		55,628		51,263		8.5			59,045		(5.8	)		114,673		107,426		6.7
Asset management and service fees		65,169		56,817		14.7			60,586		7.6			125,755		114,347		10.0
Net interest		18,233		13,401		36.1			17,647		3.3			35,880		24,570		46.0
Investment banking		8,531		6,411		33.1			12,470		(31.6	)		21,001		12,723		65.1
Other income		4,045		4,160		(2.7	)		7,577		(46.6	)		11,622		9,670		20.2
Net revenues		240,029		225,645		6.4			248,348		(3.3	)		488,377		464,091		5.2
Non-interest expenses:
Compensation and benefits		140,984		132,952		6.0			143,757		(1.9	)		284,741		275,538		3.3
Non-compensation operating expenses		37,692		37,267		1.1			35,413		6.4			73,105		71,655		2.0
Total non-interest expenses		178,676		170,219		5.0			179,170		(0.3	)		357,846		347,193		3.1
Income before income taxes	$	61,353	$	55,426		10.7		$	69,178		(11.3	)	$	130,531	$	116,898		11.7
As a percentage of net revenues:
Compensation and benefits		58.7		58.9					57.9					58.3		59.4
Non-compensation operating expenses		15.7		16.5					14.2					15.0		15.4
Income before income taxes		25.6		24.6					27.9					26.7		25.2

Stifel Bank & Trust (Unaudited)
Key Statistical Information
(in 000s, except percentages)	6/30/12			6/30/11			% Change		3/31/12			% Change
Other information:
Assets	$	3,058,971		$	1,807,859			69.2	$	2,611,828			17.1
Investment securities		1,849,622			1,177,850			57.0		1,673,866			10.5
Retained loans, net		709,079			476,764			48.7		657,081			7.9
Loans held for sale		117,166			55,110			112.6		141,136			(17.0)
Deposits		2,776,684			1,641,079			69.2		2,357,912			17.8
Allowance as a percentage of loans		0.88	%		0.68	%				0.87	%
Non-performing assets as a percentage of total assets		0.08	%		0.10	%				0.11	%

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Institutional Group Summary Results of Operations (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/12		6/30/11		% Change			3/31/12		% Change			6/30/12		6/30/11		% Change
Revenues:
Commissions	$	39,004	$	44,721		(12.8	)	$	32,280		20.8		$	71,284	$	98,746		(27.8	)
Principal transactions		35,936		28,477		26.2			57,188		(37.2	)		93,124		65,173		42.9
Capital raising		32,202		33,172		(2.9	)		42,363		(24.0	)		74,565		59,218		25.9
Advisory fees		26,630		24,835		7.2			15,605		70.7			42,235		33,895		24.6
Investment banking		58,832		58,007		1.4			57,968		1.5			116,800		93,113		25.4
Other 6		1,525		1,710		(10.8	)		1,068		42.8			2,593		2,877		(9.9	)
Net revenues		135,297		132,915		1.8			148,504		(8.9	)		283,801		259,909		9.2
Non-interest expenses:
Compensation and benefits		84,754		82,006		3.4			94,024		(9.9	)		178,778		159,193		12.3
Non-compensation operating expenses		32,997		28,958		14.0			30,776		7.2			63,773		57,372		11.2
Total non-interest expenses		117,751		110,964		6.1			124,800		(5.6	)		242,551		216,565		12.0
Income before income taxes	$	17,546	$	21,951		(20.1	)	$	23,704		(26.0	)	$	41,250	$	43,344		(4.8	)
As a percentage of net revenues:
Compensation and benefits		62.6		61.7					63.3					63.0		61.2
Non-compensation operating expenses		24.4		21.8					20.7					22.5		22.1
Income before income taxes		13.0		16.5					16.0					14.5		16.7

Institutional Group Brokerage & Investment Banking Revenues (Unaudited)
	Three Months Ended												Six Months Ended
(in 000s)	6/30/12		6/30/11		% Change			3/31/12		% Change			6/30/12		6/30/11		% Change
Institutional brokerage:
Equity	$	38,466	$	41,695		(7.7	)	$	44,172		(12.9	)	$	82,638	$	94,093		(12.2	)
Fixed income		36,474		31,503		15.8			45,296		(19.5	)		81,770		69,826		17.1
Institutional brokerage		74,940		73,198		2.4			89,468		(16.2	)		164,408		163,919		0.3
Investment banking:
Capital raising:
Equity		17,651		27,999		(37.0	)		31,550		(44.1	)		49,201		51,004		(3.5	)
Fixed income		14,551		5,173		181.3			10,813		34.6			25,364		8,214		208.8
Capital raising		32,202		33,172		(2.9	)		42,363		(24.0	)		74,565		59,218		25.9
Advisory fees:		26,630		24,835		7.2			15,605		70.7			42,235		33,895		24.6
Investment banking	$	58,832	$	58,007		1.4		$	57,968		1.5		$	116,800	$	93,113		25.4

Investor Relations Contact

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

6 Includes net interest and other income.

7