Stifel Financial Corp. Reports First Quarter Results

Net Revenue of $220.0 million up 4%, Net Income of $13.2 million, Diluted EPS
$0.44
ST. LOUIS--(Business Wire)--
Stifel Financial Corp. (NYSE: SF) today reported unaudited quarterly net income
of $13.2 million, or $0.44 per diluted share, on net revenues of $220.0 million
for the quarter ended March 31, 2009. For the comparable quarter of 2008, net
income was $14.3 million, or $0.54 per diluted share, on net revenues of $211.5
million. Our 2008 first quarter included acquisition charges of $4.0 million, or
$0.15 per diluted share. All prior period share and earnings per share amounts
have been retroactively restated to reflect the three-for-two stock split
distributed in June 2008.

At March 31, 2009, our equity was $630.8 million, resulting in book value per
share of $23.19.

Chairman`s Comments

Chairman and Chief Executive Officer, Ronald J. Kruszewski, commented, "Our
quarter over quarter results were diminished particularly for our Private Client
Group and Equity Capital Markets segments, as a result of the continued
industry-wide difficult market conditions for corporate investment banking and
reduced valuations of customers` assets offset by excellent performances by our
Fixed Income Capital Markets and Stifel Bank segments. Additionally, overhead
costs across all segments increased as we took advantage of hiring opportunities
resulting from market displacements. Since the beginning of 2008, we have
increased our number of Financial Advisors and branch offices by hiring 363
Financial Advisors and opening 55 branches. In addition, we have added 134
revenue producing investment bankers, traders, institutional sales staff, and
mortgage bankers along with 300 branch and home office support staff. This is an
investment in our future and I am confident that our growth will position us to
take advantage of the opportunities that lie ahead."

Stifel Financial Corp.
Summary of Results of Operations (Unaudited)
($ In Thousands, Except Per Share Amounts)

Three Months Ended Percent Change From
3/31/2009 12/31/2008 3/31/2008 12/31/2008 3/31/2008
Total Revenues $ 222,332 $ 233,756 $ 217,242 -5% 2%
Net Revenues $ 219,981 $ 230,986 $ 211,477 -5% 4%
Net Income $ 13,177 $ 16,046 $ 14,347 -18% -8%

Per Share Information

Three Months Ended Percent Change From
3/31/2009 12/31/2008 3/31/2008 12/31/2008 3/31/2008
Earnings Per Share: Diluted $ 0.44 $ 0.53 $ 0.54 -18% -19%
Weighed average common equivalent share 30,198 30,215 26,645 0% 13%
Computations: Diluted shares

Business Highlights

Quarterly Highlights

* Net revenues of $220.0 million, a 4% increase from the prior year first
quarter and a 5% decrease from the fourth quarter of 2008.
* Net income of $13.2 million, or $0.44 per diluted share, an 8% decrease over
the prior year first quarter and an 18% decrease from the fourth quarter of
2008.
* Commissions and principal transactions revenue of $171.9 million increased 13%
over the prior year first quarter and decreased 2% from the fourth quarter of
2008.
* Investment banking revenues decreased 29% to $15.5 million from the prior year
first quarter and decreased 2% from the fourth quarter of 2008.
* Asset management and service fees revenue decreased 18% to $24.9 million from
the prior year first quarter and decreased 15% from the fourth quarter of 2008.
* The PCG segment recorded net revenues of $110.5 million, a 4% decrease from
the first quarter of 2008 and a 1% decrease from the fourth quarter of 2008.
* The FICM segment recorded net revenues of $58.4 million, a 33% increase over
the first quarter of 2008 and relatively unchanged from the fourth quarter of
2008.
* The ECM segment net revenues decreased 4% from the first quarter 2008 and 14%
from the fourth quarter of 2008.
* The number of Financial Advisors increased to 1,394 from 1,169 in the prior
year first quarter.
* For the three months ended March 31, 2009, pre-tax margin was 10% compared to
11% for the previous year first quarter and 12% for the fourth quarter of 2008.
* For the three months ended March 31, 2008, annualized return on average equity
was 9% as compared to 14% for the previous year first quarter and 11% for the
fourth quarter of 2008.
* We announced an agreement to acquire from UBS Financial Services Inc. up to 55
branches from UBS Wealth Management Americas branch network.

Stifel Financial Corp.
Summary of Results of Operations (Unaudited)
($ In Thousands, Except Per Share Amounts)

Three Months Ended Percent Change From
3/31/2009 % of Net 12/31/2008 % of Net 3/31/2008 % of Net 12/31/2008 3/31/2008
Revenues Revenues Revenues
Revenues
Commissions $ 74,610 33.9% $ 83,599 36.2% $ 85,701 40.5% -11% -13%
Principal transactions 97,278 44.2% 92,492 40.0% 66,937 31.7% 5% 45%
Investment banking 15,504 7.1% 15,775 6.8% 21,844 10.3% -2% -29%
Asset management and service fees 24,933 11.3% 29,346 12.7% 30,278 14.3% -15% -18%
Other 115 0.1% 1,571 0.7% (1,207) -0.6% -93% n/a
Total operating revenues 212,440 96.6% 222,783 96.4% 203,553 96.2% -5% 4%
Interest revenue 9,892 4.5% 10,973 4.8% 13,689 6.5% -10% -28%
Total revenues 222,332 101.1% 233,756 101.2% 217,242 102.7% -5% 2%
Less: Interest expense 2,351 1.1% 2,770 1.2% 5,765 2.7% -15% -59%
Net revenues 219,981 100.0% 230,986 100.0% 211,477 100.0% -5% 4%
Non-Interest Expenses
Employee compensation and benefits 147,840 67.2% 141,750 61.4% 146,030 69.1% 4% 1%
Occupancy and equipment rental 17,867 8.1% 18,972 8.2% 15,716 7.4% -6% 14%
Communication and office supplies 11,845 5.4% 12,734 5.5% 11,947 5.7% -7% -1%
Commissions and floor brokerage 4,360 2.0% 4,972 2.2% 481 0.2% -12% 806%
Other operating expenses 15,914 7.2% 25,958 11.2% 13,378 6.3% -39% 19%
Total non-interest expenses 197,826 89.9% 204,386 88.5% 187,552 88.7% -3% 5%
Income before income taxes 22,155 10.1% 26,600 11.5% 23,925 11.3% -17% -7%
Provision for income taxes 8,978 4.1% 10,554 4.6% 9,578 4.5% -15% -6%
Net income $ 13,177 6.0% $ 16,046 6.9% $ 14,347 6.8% -18% -8%

Per Share Information

Three Months Ended Percent Change From
3/31/2009 12/31/2008 3/31/2008 12/31/2008 3/31/2008
Earnings Per Share:
Basic $ 0.49 $ 0.61 $ 0.61 -20% -20%
Diluted $ 0.44 $ 0.53 $ 0.54 -17% -19%

Weighted average common equivalent shares:
Basic shares 26,772 25,706 23,276 4% 15%
Diluted shares 30,198 30,215 26,645 0% 13%

Statistical Information

Book Value Per Share $ 23.19 $ 22.75 $ 18.71 2% 24%
Financial Advisors 1,394 1,315 1,169 6% 19%
Full-Time Employees 3,560 3,371 2,994 6% 19%
Locations 230 225 179 2% 28%
Total Client Assets (in thousands) $ 54,854,000 $ 51,828,000 $ 57,283,000 6% -4%

Business Segment Results

Stifel Financial Corp.
Summary of Segment Data & Statistical Information (Unaudited)
Segment Data ($ In Thousands)

Three Months Ended Percent Change From
Net Revenues 03/31/2009 12/31/2008 03/31/2008 12/31/2008 03/31/2008
Private client $ 110,524 $ 111,603 $ 114,853 -1% -4%
Equity capital markets 47,083 54,902 49,228 -14% -4%
Fixed income capital markets 58,389 58,276 44,002 0% 33%
Stifel Bank 3,640 1,080 2,082 237% 75%
Other 345 5,125 1,312 -93% -74%
Total net revenues $ 219,981 $ 230,986 $ 211,477 -5% 4%
Operating Contribution
Private client $ 15,460 $ 19,216 $ 25,605 -20% -40%
Equity capital markets 5,725 7,171 6,927 -20% -17%
Fixed income capital markets 20,309 23,722 14,913 -14% 36%
Stifel Bank 1,774 (844) 309 n/a 474%
Other/unallocated overhead (21,113) (22,665) (23,829) n/a n/a
Income before income taxes $ 22,155 $ 26,600 $ 23,925 -17% -7%

Private Client Group Segment - First Quarter Highlights

* Net revenues of $110.5 million, a 4% decrease over the prior year first
quarter and a 1% decrease from the fourth quarter of 2008.
* Operating contribution of $15.5 million, a 40% decrease over the prior year
first quarter and a 20% decrease from the fourth quarter of 2008.
* Commissions and principal transactions revenue increased 5% over the prior
year first quarter and increased 4% from the fourth quarter of 2008.
* Investment banking revenues decreased 50% from the prior year first quarter
and increased 13% from the fourth quarter of 2008.
* Asset management and service fees revenue decreased 18% to $24.8 million as
compared to the prior year first quarter and decreased 14% from the fourth
quarter of 2008.
* For the three months ended March 31, 2009, employee compensation and benefits
was 65% of net revenues compared to 63% for the same period last year and 63%
for the fourth quarter of 2008.
* We completed the integration of Butler Wick PCG offices we acquired on
December 31, 2008.
* We added 26 PCG offices and 164 Financial Advisors, including 17 offices and
67 Financial Advisors from Butler Wick, in the first quarter as part of our
ongoing footprint expansion efforts.
* We announced an agreement to acquire from UBS Financial Services Inc. up to 55
branches from UBS Wealth Management Americas branch network.

Stifel Financial Corp.
Private Client Group Segment Data & Statistical Information (Unaudited)
($ in thousands)
Three Months Ended Percent Change From
Revenues: 03/31/2009 12/31/2008 03/31/2008 12/31/2008 03/31/2008
Commissions and principal transactions $ 81,653 $ 78,597 $ 77,952 4% 5%
Investment banking 2,070 1,825 4,103 13% -50%
Asset management and service fees 24,831 28,848 30,147 -14% -18%
Net interest & other 1,970 2,333 2,651 -16% -26%
Total net revenues 110,524 111,603 114,853 -1% -4%
Non-interest expenses:
Employee compensation and benefits 72,218 69,762 72,845 4% -1%
Other non-interest expenses 22,846 22,625 16,403 1% 39%
Total non-interest expenses 95,064 92,387 89,248 3% 7%
Income before income taxes $ 15,460 $ 19,216 $ 25,605 -20% -40%
Ratios to Net Revenues
Employee compensation and benefits 65% 63% 63%
Other non-interest expenses 21% 20% 14%
Net margins 14% 17% 22%

Equity Capital Markets Segment - First Quarter Highlights

* Net revenues of $47.1 million, a 4% decrease over the prior year first quarter
and a 14% decrease from the fourth quarter of 2008.
* Operating contribution of $5.7 million, a 17% decrease over the prior year
first quarter and a 20% decrease from the fourth quarter of 2008.
* Commissions and principal transactions revenue increased 6% over the prior
year first quarter and decreased 17% from the fourth quarter of 2008.
* Investment banking revenues decreased 29% over the prior year first quarter
and decreased 1% from the fourth quarter of this year.
* For the three months ended March 31, 2009, employee compensation and benefits
was 62% of net revenues compared to 64% for the prior year first quarter and 59%
for the fourth quarter 2008.
* We added 12 revenue producers in the first quarter 2009.

Stifel Financial Corp.
Equity Capital Markets Group Segment Data & Statistical Information (Unaudited)
($ in thousands)
Three Months Ended Percent Change From
Revenues: 03/31/2009 12/31/2008 03/31/2008 12/31/2008 03/31/2008
Commissions and principal transactions $ 36,787 $ 44,268 $ 34,654 -17% 6%
Capital raising 693 5,142 6,758 -87% -90%
Advisory fees 9,405 5,026 7,509 87% 25%
Investment banking 10,098 10,168 14,267 -1% -29%
Other 198 466 307 -58% -36%
Total net revenues 47,083 54,902 49,228 -14% -4%
Non-interest expenses:
Employee compensation and benefits 29,311 32,137 31,294 -9% -6%
Other non-interest expenses 12,047 15,594 11,007 -23% 9%
Total non-interest expenses 41,358 47,731 42,301 -13% -2%
Income before income taxes $ 5,725 $ 7,171 $ 6,927 -20% -17%
Ratios to Net Revenues
Employee compensation and benefits 62% 59% 64%
Other non-interest expenses 26% 28% 22%
Net margins 12% 13% 14%

Fixed Income Capital Markets Segment - First Quarter Highlights

* Net revenues of $58.4 million, a 33% increase over the prior year first
quarter and unchanged from the fourth quarter of 2008.
* Operating contribution of $20.3 million, a 36% increase over the prior year
first quarter and a 14% decrease from the fourth quarter of 2008.
* Commissions and principal transactions revenue increased 34% over the prior
year first quarter and were unchanged from the fourth quarter of 2008.
* For the three months ended March 31, 2009, employee compensation and benefits
was 57% of net revenues compared to 59% for the prior year first quarter and 51%
in the fourth quarter 2008.
* We added 8 revenue producers in the first quarter of 2009.

Stifel Financial Corp.
Fixed Income Capital Markets Segment Data & Statistical Information (Unaudited)
($ in thousands)
Three Months Ended Percent Change From
Revenues: 03/31/2009 12/31/2008 03/31/2008 12/31/2008 03/31/2008
Commissions and principal transactions $ 53,448 $ 53,226 $ 40,032 0% 34%
Investment banking 3,337 3,783 3,474 -12% -4%
Other 1,604 1,267 496 27% 224%
Total net revenues 58,389 58,276 44,002 0% 33%
Non-interest expenses:
Employee compensation and benefits 33,207 29,667 25,936 12% 28%
Operating expenses 4,873 4,887 3,153 0% 55%
Total non-interest expenses 38,080 34,554 29,089 10% 31%
Income before income taxes $ 20,309 $ 23,722 $ 14,913 -14% 36%
Ratios to Net Revenues
Employee compensation and benefits 57% 51% 59%
Other non-interest expenses 8% 8% 7%
Net margins 35% 41% 34%

Stifel Bank Segment - First Quarter Highlights

* Net revenues of $3.6 million increased 75% over the prior year first quarter
and increased 237% over the fourth quarter of 2008.
* Operating contributions of $1.8 million increased 474% over the prior year
first quarter and increased $2.6 million over the fourth quarter of 2008.
* Total retained loans, net, increased 42% from the prior year first quarter and
decreased 5% over the fourth quarter of 2008.
* Total assets increased 113% over the prior year first quarter, and increased
54% over the fourth quarter of 2008.
* Non-performing loans as a percentage of total loans was 1.37%, a decrease from
1.51% in the prior year first quarter and increased from 0.30% in the fourth
quarter of 2008.

Stifel Financial Corp.
Stifel Bank & Trust Segment Data & Statistical Information (Unaudited)
($ in thousands)
Three Months Ended Percent Change From
Revenues: 03/31/2009 12/31/2008 03/31/2008 12/31/2008 03/31/2008
Interest 3,656 3,763 3,551 -3% 3%
Other 670 (1,961) 247 n/a 171%
Total Revenues 4,326 1,802 3,798 140% 14%
Less: Interest expense 686 722 1,716 -5% -60%
Total net revenues 3,640 1,080 2,082 237% 75%
Non-interest expenses:
Employee compensation and benefits 411 784 759 -48% -46%
Other non-interest expenses 1,455 1,140 1,014 28% 43%
Total non-interest expenses 1,866 1,924 1,773 -3% 5%
Income before income taxes 1,774 (844) 309 n/a 474%
As of 03/31/2009 12/31/2008 03/31/2008
Total assets $ 529,953 $ 343,417 $ 248,982 54% 113%
Total retained loans, net $ 182,841 $ 192,819 $ 129,206 -5% 42%
Total loans held for sale, net $ 31,108 $ 37,348 $ 3,433 -17% 806%
Total deposits $ 459,305 $ 284,798 $ 192,487 61% 139%
Allowance for loan losses as a % of loans 1.47% 1.23% 1.32%
Total non-performing loans as a % of loans 1.37% 0.30% 1.51%

Statement of Financial Condition Highlights (Unaudited)

Total assets increased 25% to $2.0 billion at March 31, 2009 from $1.6 billion
at March 31, 2008. Total stockholders` equity increased $193.8 million, or 44%,
to $630.8 million at March 31, 2009, principally due to funds from our public
offering, net income, and amortization of stock-based awards.

At March 31, 2009, the Company reported total securities owned and investments
at fair value of $649.7 million, which included securities categorized as level
3 of $37.8 million.

Conference Call Information

Stifel Financial Corp. will hold a conference call Monday, May 11, 2009, at 4:30
p.m. Eastern. This call will be Web cast and slides can be accessed on the
Investor Relations portion of the Stifel Financial Corp. website at
www.stifel.com, as well as on all sites within Thomson/CCBN's Investor
Distribution Network. Questions may be posed to management by participants on
the call, and in response, the company may disclose additional material
information. To participate in the question and answer portion on the call,
please dial 888-676-3684 and request the Stifel Financial Corp. earnings call.
The subjects to be covered may also contain forward-looking information.

Company Information

Stifel Financial Corp. operates 237 offices in 35 states and the District of
Columbia through its principal subsidiary, Stifel Nicolaus and Company, Inc.,
and 3 European offices through Stifel Nicolaus Limited. Stifel Nicolaus provides
securities brokerage, investment banking, trading, investment advisory,
commercial and retail banking and related financial services to individual
investors, professional money managers, businesses, and municipalities. Stifel
Bank & Trust offers a full range of consumer and commercial lending solutions.
To learn more about Stifel, please visit the Company's web site at
www.stifel.com.

Forward-Looking Statements

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

Stifel Financial Corp.
James M. Zemlyak, Chief Financial Officer, 314-342-2228
zemlyakj@stifel.com

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