HFF, Inc. (NYSE: HF) reported today its financial and production volume results for the second quarter of 2012. Based on transaction volume, HFF, Inc. (the Company), through its Operating Partnerships, Holliday Fenoglio Fowler, L.P. (HFF LP) and HFF Securities L.P. (HFF Securities and, collectively with HFF LP, the Operating Partnerships), is one of the leading and largest full-service commercial real estate financial intermediaries in the U.S. providing commercial real estate and capital markets services to both the users and providers of capital in the commercial real estate sector. Consolidated Earnings Second Quarter Results The Company reported revenues of $66.8 million for the second quarter of 2012, a decrease of $6.1 million, or 8.4% compared to the second quarter of 2011 revenues of $72.9 million. The Company generated operating income of $13.5 million compared to $16.8 million for the second quarter of 2011, representing a decrease of $3.3 million, or 19.6%, from the second quarter of 2011 results. This decline in operating income is primarily attributable to the decrease in revenues and increases in the Company’s compensation-related costs and expenses associated with, in part, the growth in headcount of 80 net new associates over the past twelve months, and increased operating, administrative and other costs such as occupancy costs and travel and entertainment, which are also related, in part, to the Company’s headcount growth, and costs related to office expansion. These cost increases are offset by a decrease in performance based incentive compensation accruals and decreased stock compensation expense primarily related to mark-to-market adjustments on liability based stock awards revalued each quarter. Interest and other income, net, totaled $5.3 million in the second quarter of 2012, a slight decrease of $61,000, or 1.1%, as compared to $5.4 million in the second quarter of 2011. The Company recorded income tax expense of $7.8 million in the second quarter of 2012, compared to $8.6 million in the second quarter of 2011, a decrease of $0.8 million, or 9.2%, which is primarily due to the lower income before income taxes earned in the second quarter of 2012 compared to the second quarter of 2011.