What changed in this filing

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Item 1. Financial Statements

2021-08-09 compared with 2021-05-07 · 261 added, 273 removed, 1680 unchanged (24% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

$ in millions, except per share amounts March 31, 2021 September 30, 2020

$ in millions, except per share amounts June 30, 2021 September 30, 2020

Cash and cash equivalents $ 5,982 $ 5,390

36 unchanged sentences

350,000,000 shares authorized;

159,231,968 and 159,007,158 shares issued as of March 31, 2021 and September 30, 2020, respectively, and 137,155,669 and 136,556,559 shares outstanding as of March 31, 2021 and September 30, 2020, respectively

159,303,913 and 159,007,158 shares issued as of June 30, 2021 and September 30, 2020, respectively, and 136,948,422 and 136,556,559 shares outstanding as of June 30, 2021 and September 30, 2020, respectively

Additional paid-in capital 2,060 2,007

1 unchanged sentence

Treasury stock, at cost;

22,076,299 and 22,450,599 common shares as of March 31, 2021 and September 30, 2020, respectively

22,355,491 and 22,450,599 common shares as of June 30, 2021 and September 30, 2020, respectively

( 1,446 ) ( 1,390 )

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

in millions, except per share amounts 2021 2020 2021 2020

9 unchanged sentences

205 217 608 799

44 ( 15 ) 100 14

Total revenues

15 unchanged sentences

Bank loan provision/(benefit) for credit losses ( 19 ) 81 ( 37 ) 188

Losses on extinguishment of debt 98 — 98 —

Acquisition-related expenses 7 — 9 —

28 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions, except per share amounts 2021 2020 2021 2020

33 unchanged sentences

( 38 ) ( 11 ) 11 ( 23 )

Other comprehensive income, net of tax ( 55 ) ( 6 ) ( 49 ) 12

Other comprehensive income/(loss), net of tax 28 12 ( 21 ) 24

Balance end of period

14 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended March 31,

Nine months ended June 30,

$ in millions 2021 2020

6 unchanged sentences

Share-based compensation expense 103 97

Unrealized (gain)/loss on company-owned life insurance policies, net of expenses ( 117 ) 76

Other 31 ( 4 )

Unrealized gain on company-owned life insurance policies, net of expenses ( 159 ) ( 10 )

Losses on extinguishment of debt 98 —

Net change in:

3 unchanged sentences

Brokerage client receivables and other accounts receivable, net

( 123 ) ( 203 )

Trading instruments, net 42 216

22 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended March 31,

Nine months ended June 30,

$ in millions 2021 2020

3 unchanged sentences

Proceeds from senior notes issuances, net of debt issuance costs paid 737 494

Extinguishment of senior notes payable ( 844 ) —

Exercise of stock options and employee stock purchases 42 55

2 unchanged sentences

Dividends on common stock ( 163 ) ( 154 )

Acquisitions of and distributions to noncontrolling interests, net — ( 1 )

Other financing, net ( 6 ) ( 2 )

Net cash provided by financing activities 3,149 3,258

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021

June 30, 2021

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

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A summary of our significant accounting policies is included in Note 2 of our 2020 Form 10-K.

During the six months ended March 31, 2021, there were no significant changes to our significant accounting policies other than the accounting policies adopted or modified as part of our implementation of new or amended accounting guidance, as noted in the following sections.

During the nine months ended June 30, 2021, there were no significant changes to our significant accounting policies other than the accounting policies adopted or modified as part of our implementation of new or amended accounting guidance, as noted in the following sections.

Accounting guidance adopted in fiscal 2021

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This new guidance was effective for our fiscal year beginning on October 1, 2020 and was adopted under a modified retrospective approach.

The impact of adoption of this new standard resulted in an increase in our allowance for credit losses of $ 42 million (including $ 25 million related to loans to financial advisors, $ 9 million related to funded bank loans and $ 8 million related to unfunded lending commitments) and a corresponding reduction in the beginning balance of retained earnings of approximately $ 35 million, net of tax.

Prior-period amounts were calculated under the incurred loss model and have not been restated.

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Available-for-sale securities

Available-for-sale securities are generally held by Raym ond James Bank, N.A.

(“RJ Bank, N.A.”) and are classified at the date of purchase.

Available-for-sale securities are generally held by Raym ond James Bank and are classified at the date of purchase.

They are comprised primarily of agency mortgage-backed securities (“MBS”) and agency collateralized mortgage obligations (“CMOs”), which are guaranteed by the U.S.

government or its agencies.

Available-for-sale securities owned by RJ Bank, N.A.

are used as part of its interest rate risk and liquidity management strategies and may be sold in response to changes in interest rates, changes in prepayment risks, or other factors.

Available-for-sale securities owned by Raymond James Bank are used as part of its interest rate risk and liquidity management strategies and may be sold in response to changes in interest rates, changes in prepayment risks, or other factors.

As a result of the adoption of the new CECL guidance, credit losses on available-for-sale securities are limited to the difference between the security’s amortized cost basis and its fair value and should be recognized through an allowance for credit losses rather than as a direct reduction in amortized cost basis.

8 unchanged sentences

We update these estimates through periodic evaluations against actual trends experienced.

As permitted under the CECL guidance, we include accrued interest receivables related to our financial assets in “Other receivables, net” on the Condensed Consolidated Statements of Financial Condition instead of with the related financial instrument.

We reverse any uncollectible accrued interest into interest income generally when the related financial asset is

RAYMOND JAMES FINANCIAL, INC.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

moved to nonaccrual status.

We reverse any uncollectible accrued interest into interest income generally when the related financial asset is moved to nonaccrual status.

As we write off uncollectible amounts in a timely manner, we do not recognize an allowance for credit losses against accrued interest receivable.

66 unchanged sentences

Additional factors considered by the residential mortgage model include Fair Isaac Corporation (“FICO”) scores and loan-to-value (“LTV”) ratios.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

We generally use one of two methods to measure the allowance for credit losses on individually evaluated loans.

2 unchanged sentences

A loan is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the collateral.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

See Note 8 for further information about our bank loans, including credit quality indicators considered in developing the allowance for credit losses.

8 unchanged sentences

In estimating an allowance for credit losses on our individually-evaluated loans to financial advisors, we generally take into account the affiliation status of the financial advisor (i.e., whether the advisor is actively affiliated with us or has terminated affiliation with us), the borrower’s ability to restructure the loan, sources of repayment, and other factors affecting the borrower’s ability to repay the debt.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 3 – ACQUISITIONS

Acquisitions announced and completed during the six months ended March 31, 2021

In December 2020, we announced and completed our acquisition of all of the outstanding shares of NWPS Holdings, Inc.

Acquisitions announced and completed during the nine months ended June 30, 2021

In December 2020, we completed our acquisition of all of the outstanding shares of NWPS Holdings, Inc.

and its wholly-owned subsidiaries (collectively “NWPS”), doing business as NWPS and Northwest Plan Services.

As an independent provider of retirement plan administration, consulting, actuarial and administration services, the addition of NWPS allows us to expand our retirement services offerings, including retirement plan administration services, to advisors and clients.

As an independent provider of retirement plan administration, consulting, actuarial and administration services, the addition of NWPS expands our retirement services offerings, which now include retirement plan administration services, to advisors and clients.

For purposes of certain acquisition-related financial reporting requirements, the NWPS acquisition was not considered a material acquisition.

NWPS has been integrated into our Private Client Group (“PCG”) segment and its results of operations have been included in our results prospectively from the closing date of December 24, 2020.

The NWPS acquisition resulted in the addition of $ 139 million of goodwill and $ 96 million of identifiable intangible assets during the six months ended March 31, 2021.

During the nine months ended June 30, 2021, the NWPS acquisition resulted in the addition of $ 139 million of goodwill and $ 96 million of identifiable intangible assets.

The goodwill associated with this acquisition primarily represents synergies from combining NWPS with our existing businesses.

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In March 2021, we completed our acquisition of all of the outstanding ownership interests of Financo, LLC and its subsidiaries (collectively “Financo”), an investment bank focused on the consumer sector.

The addition of Financo allows us to further grow our investment banking capabilities in the consumer and retail space, both domestically and internationally.

The addition of Financo expands our investment banking capabilities in the consumer and retail space, both domestically and internationally.

For purposes of certain acquisition-related financial reporting requirements, the Financo acquisition was not considered a material acquisition.

Financo has been integrated into our Capital Markets segment and its results of operations have been included in our results prospectively from the closing date of March 30, 2021.

The Financo acquisition resulted in the addition of $ 30 million of goodwill and $ 9 million of identifiable intangible assets during the six months ended March 31, 2021.

The goodwill associated with this acquisition primarily represents synergies from combining Financo with our existing businesses.

The goodwill associated with Financo is generally deductible for tax purposes over 15 years.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

During the nine months ended June 30, 2021, the Financo acquisition resulted in the addition of $ 30 million of goodwill and $ 9 million of identifiable intangible assets.

The goodwill associated with this acquisition primarily represents synergies from combining Financo with our existing businesses and is generally deductible for tax purposes over 15 years.

The identifiable intangible assets primarily relate to client relationships and have a weighted-average useful life of 9 months.

Due to the timing of the close of this acquisition, certain information is not yet available and the amounts of goodwill and intangible assets are considered provisional.

We believe the information currently available provides a reasonable basis for estimating the fair value of these assets.

However, these provisional estimates may be adjusted upon the availability of new information regarding facts and circumstances which existed at the acquisition date.

We expect to finalize this valuation by the end of our 2021 fiscal year.

See Notes 2 and 10 of our 2020 Form 10-K and Note 11 of this Form 10-Q for additional information about our goodwill and identifiable intangible assets, including the related accounting policies.

Acquisition announcements

On May 25, 2021, we announced we had entered into a definitive agreement to acquire all of the outstanding shares of Cebile Capital (“Cebile”), a leading private fund placement agent and secondary market advisor to private equity firms.

The addition of Cebile deepens our investment banking relationships with the private equity community and expands our related service offerings.

For purposes of certain acquisition-related financial reporting requirements, the Cebile acquisition will not be considered a material acquisition.

Cebile will operate within our Capital Markets segment upon closing of the acquisition, which we expect to occur during our fiscal fourth quarter of 2021 once all regulatory and other closing conditions are satisfactorily resolved.

Charles Stanley

On July 29, 2021, we announced our firm intention to make an offer for the entire issued and to be issued share capital of United Kingdom (“U.K.”)-based Charles Stanley Group PLC (“Charles Stanley”) at a price of £ 5.15 per share, or approximately £ 279 million.

The combination would provide us the opportunity to accelerate growth in the U.K.;

and, through Charles Stanley’s multiple affiliation options, give us the ability to offer wealth management affiliation choices consistent with our model in Canada and the U.S.

For purposes of certain acquisition-related financial reporting requirements, the Charles Stanley acquisition will not be considered a material acquisition.

The transaction, subject to U.K.

Financial Conduct Authority and Charles Stanley shareholder approval, is expected to close in our fiscal first quarter of 2022.

Charles Stanley will operate within our PCG segment upon completion of the acquisition.

Acquisition-related expenses

Certain acquisition and integration costs associated with these acquisitions were included in “Acquisition and disposition-related expenses” during fiscal 2021 on our Condensed Consolidated Statements of Income and Comprehensive Income.

Such costs primarily included legal and other professional fees.

Certain acquisition and integration costs associated with these acquisitions were included in “Acquisition-related expenses” during fiscal 2021 on our Condensed Consolidated Statements of Income and Comprehensive Income.

Such costs primarily included legal and other professional fees and, with respect to Financo, amortization expense related to intangible assets with short useful lives.

RAYMOND JAMES FINANCIAL, INC.

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$ in millions Level 1 Level 2 Level 3 Netting

adjustments Balance as of March 31, 2021

adjustments Balance as of June 30, 2021

Assets at fair value on a recurring basis:

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Foreign exchange — 7 — — 7

Other — — 1 — 1

Total derivative assets 7 378 1 ( 95 ) 291

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Government and agency obligations 163 — — — 163

Agency MBS and agency CMOs — 22 — — 22

Total debt securities 165 20 — — 185

Equity securities 73 — — — 73

Other — — 1 — 1

Total trading liabilities 238 20 — — 258

2 unchanged sentences

Interest rate - other 6 115 — ( 83 ) 38

Foreign exchange — 3 — — 3

Other — — 4 — 4

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(2) These assets are comprised of U.S.

Treasuries purchased to meet certain deposit requirements with clearing organizations.

Treasuries purchased to meet certain deposit requirements with clearing organizations or to meet future customer reserve requirements.

RAYMOND JAMES FINANCIAL, INC.

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In the following tables, gains/(losses) on trading instruments are reported in “Principal transactions” and gains/(losses) on other investments are reported in “Other” revenues.

Three months ended March 31, 2021

Three months ended June 30, 2021

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Other investments Trading liabilities Derivative liabilities

$ in millions Other Private equity investments All other Other Other

Trading assets Derivative assets Other investments Trading liabilities Derivative liabilities

$ in millions Other Other Private equity investments All other Other Other

Fair value beginning of period

1 unchanged sentence

Total gains/(losses) included in earnings

( 2 ) — 1 ( 1 ) ( 3 )

Purchases and contributions

7 unchanged sentences

$ — $ 1 $ 14 $ — $ — $ —

Six months ended March 31, 2021

Nine Months Ended June 30, 2021

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Other investments Trading liabilities Derivative liabilities

$ in millions Other Private equity investments All other Other Other

Trading assets Derivative assets Other investments Trading liabilities Derivative liabilities

$ in millions Other Other Private equity investments All other Other Other

Fair value beginning of period

1 unchanged sentence

Total gains/(losses) included in earnings

— 15 1 ( 1 ) 1

Purchases and contributions

7 unchanged sentences

$ — $ 1 $ 29 $ — $ — $ 1

The net unrealized gains included in earnings on our Level 3 private equity investments for the three and nine months ended June 30, 2021 primarily reflected the impact of continued improvement in market conditions and an improved outlook for certain of our investments.

Of these gains, $ 9 million and $ 18 million were attributable to noncontrolling interests, which are reflected as an offset in “Other” expenses on our Condensed Consolidated Statements of Income and Comprehensive Income.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three months ended March 31, 2020

Three months ended June 30, 2020

Level 3 instruments at fair value

5 unchanged sentences

Total gains/(losses) included in earnings

3 ( 32 ) ( 2 ) —

Purchases and contributions

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$ 2 $ — $ — $ —

Six months ended March 31, 2020

Nine Months Ended June 30, 2020

Level 3 instruments at fair value

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$ 1 $ ( 32 ) $ ( 2 ) $ —

The net unrealized losses on our Level 3 private equity investments for the three and six months ended March 31, 2020 were primarily driven by the then anticipated negative impact of the coronavirus (“COVID-19”) pandemic on certain of our investments.

Of these losses, approximately $ 20 million for both the three and six months ended March 31, 2020 were attributable to noncontrolling interests, which are reflected as an offset in “Other” expenses on our Condensed Consolidated Statements of Income and Comprehensive Income.

As of March 31, 2021, 26 % of our assets and 1 % of our liabilities were measured at fair value on a recurring basis.

The net unrealized losses on our Level 3 private equity investments for the nine months ended June 30, 2020 were primarily driven by the then anticipated negative impact of the coronavirus (“COVID-19”) pandemic on certain of our investments.

Of these losses, $ 20 million were attributable to noncontrolling interests, which are reflected as an offset in “Other” expenses on our Condensed Consolidated Statements of Income and Comprehensive Income.

As of June 30, 2021, 22 % of our assets and 1 % of our liabilities were measured at fair value on a recurring basis.

In comparison, as of September 30, 2020, 19 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis.

The increase in assets measured at fair value on a recurring basis as a percentage of total assets was primarily due to a significant increase in assets segregated pursuant to regulations at fair value during fiscal 2021, driven by a significant increase in client cash balances.

As of both March 31, 2021 and September 30, 2020, Level 3 assets represented less than 1 % of our assets measured at fair value on a recurring basis.

As of both June 30, 2021 and September 30, 2020, Level 3 assets represented less than 1 % of our assets measured at fair value on a recurring basis.

RAYMOND JAMES FINANCIAL, INC.

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$ in millions

Fair value at March 31, 2021

Fair value at June 30, 2021

Valuation technique(s) Unobservable input Range

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$ 66 Discounted cash flow, transaction price or other investment-specific events Discount rate 25 %

Terminal earnings before interest, tax, depreciation and amortization (“EBITDA”) multiple 9.0 x

Terminal year 2034 - 2034 (2034)

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$ 37 Discounted cash flow, transaction price or other investment-specific events Discount rate 25 %

Terminal EBITDA multiple 9.0 x

Terminal earnings before interest, tax, depreciation and amortization (“EBITDA”) multiple 9.0 x

Terminal year 2021 - 2042 (2023)

Qualitative information about unobservable inputs

For our recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the sensitivity of the fair value measurement to changes in significant unobservable inputs and interrelationships between those unobservable inputs are described in the following section.

Private equity investments

The significant unobservable inputs used in the fair value measurement of private equity investments generally relate to the financial performance of the investment entity and the market’s required return on investments from entities in industries in which we hold investments.

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We utilize NAV when the fund investment does not have a readily determinable fair value and the NAV of the fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value.

Our private equity portfolio as of March 31, 2021 includes various direct investments, as well as investments in third-party private equity funds and various legacy private equity funds which we sponsor.

Our private equity portfolio as of June 30, 2021 includes various direct investments, as well as investments in third-party private equity funds and various legacy private equity funds which we sponsor.

The portfolio is primarily invested in a broad range of strategies including leveraged buyouts, growth capital, distressed capital, venture capital and mezzanine capital.

6 unchanged sentences

$ in millions Recorded value Unfunded commitment

March 31, 2021

June 30, 2021

Private equity investments measured at NAV $ 93 $ 8

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Total private equity investments $ 116

Of the total private equity investments, the portions we owned were $ 105 million and $ 90 million as of March 31, 2021 and September 30, 2020, respectively.

The portions of the private equity investments we did not own were $ 35 million and $ 26 million as of March 31, 2021 and September 30, 2020, respectively, and were included as a component of noncontrolling interests on our Condensed Consolidated Statements of Financial Condition.

Of the total private equity investments, the portions we owned were $ 115 million and $ 90 million as of June 30, 2021 and September 30, 2020, respectively.

The portions of the private equity investments we did not own were $ 44 million and $ 26 million as of June 30, 2021 and September 30, 2020, respectively, and were included as a component of noncontrolling interests on our Condensed Consolidated Statements of Financial Condition.

As a financial holding company, we are subject to holding period limitations for our merchant banking activities.

As a result, we will be required to exit certain of our private equity investments by February 2022.

Additionally, many of our private equity fund investments meet the definition of prohibited covered funds as defined by the Volcker Rule enacted pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

We have received approval from the Board of Governors of the Federal Reserve System (“Fed”) to continue to hold the majority of our covered fund investments until July 2022.

We have received approval from the Board of Governors of the Federal Reserve System (“the Fed”) to continue to hold the majority of our covered fund investments until July 2022.

Financial instruments measured at fair value on a nonrecurring basis

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(weighted-average)

March 31, 2021

June 30, 2021

Residential mortgage loans $ 4 $ 11 $ 15 Collateral or discounted cash flow (1)

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Many, but not all, of the financial instruments we hold were recorded at fair value on the Condensed Consolidated Statements of Financial Condition.

The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value in accordance with GAAP on the Condensed Consolidated Statements of Financial Condition at March 31, 2021 and September 30, 2020.

This table excludes financial instruments that are carried at amounts which approximate fair value.

1 unchanged sentence

$ in millions Level 2 Level 3 Total estimated fair value Carrying amount

March 31, 2021

June 30, 2021

Financial assets:

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Senior notes payable $ 2,457 $ — $ 2,457 $ 2,037

$ 2,400 $ — $ 2,400 $ 2,045

September 30, 2020

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Senior notes payable $ 2,504 $ — $ 2,504 $ 2,045

(1) In April and May 2021, we repurchased or redeemed, as applicable, a portion of our Senior notes payable.

See Note 14 for further information.

NOTE 5 – AVAILABLE-FOR-SALE SECURITIES

Available-for-sale securities are primarily comprised of agency MBS and agency CMOs owned by RJ Bank.

Available-for-sale securities are primarily comprised of agency MBS and agency CMOs owned by Raymond James Bank.

As of October 1, 2020, we adopted new accounting guidance related to the measurement of credit losses on financial instruments, including available-for-sale securities.

4 unchanged sentences

unrealized losses Fair value

March 31, 2021

June 30, 2021

Agency residential MBS

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$ 7,531 $ 124 $ ( 5 ) $ 7,650

The amortized costs and fair values in the preceding table exclude $ 14 million and $ 15 million of accrued interest on available-for-sale securities as of March 31, 2021 and September 30, 2020, respectively, which was included in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition.

The amortized costs and fair values in the preceding table exclude $ 14 million and $ 15 million of accrued interest on available-for-sale securities as of June 30, 2021 and September 30, 2020, respectively, which was included in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition.

See Note 4 for additional information regarding the fair value of available-for-sale securities.

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Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties.

As a result, as of March 31, 2021, the weighted-average life of our available-for-sale securities portfolio was approximately 4 years.

March 31, 2021

As a result, as of June 30, 2021, the weighted-average life of our available-for-sale securities portfolio was approximately 4 years.

June 30, 2021

$ in millions Within one year After one but

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fair value Unrealized

March 31, 2021

June 30, 2021

Agency residential MBS

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government or its agencies.

At March 31, 2021, of the 242 available-for-sale securities in an unrealized loss position, 241 were in a continuous unrealized loss position for less than 12 months and one security was in a continuous unrealized loss position for greater than 12 months.

At June 30, 2021, of the 208 available-for-sale securities in an unrealized loss position, 205 were in a continuous unrealized loss position for less than 12 months and three securities were in a continuous unrealized loss position for greater than 12 months.

We do not consider unrealized losses associated with these securities to be credit losses due to the guarantee of the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities.

In addition, unrealized losses related to these available-for-sale securities are generally due to changes in market interest rates.

At March 31, 2021, based on our assessment of this portfolio, we did not recognize an allowance for credit losses on our available-for-sale securities.

At March 31, 2021, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) with amortized costs of $ 5.04 billion and $ 2.81 billion, respectively, which also approximated the fair values of the securities.

During the three months ended March 31, 2021, there were no sales of available-for-sale securities.

During the six months ended March 31, 2021, we received proceeds of $ 519 million, resulting in an insignificant gain, from sales of agency MBS and agency CMO available-for-sale securities.

The gain that resulted from the sales was included in “Other” revenues on our

At June 30, 2021, based on our assessment of this portfolio, we did not recognize an allowance for credit losses on our available-for-sale securities.

At June 30, 2021, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) with amortized costs of $ 4.84 billion and $ 2.79 billion, respectively, which also approximated the fair values of the securities.

During the three and nine months ended June 30, 2021, we received proceeds of $ 450 million and $ 969 million, respectively, from the sales of agency MBS and agency CMO available-for-sale securities.

During the three and nine months ended June 30, 2020, we received proceeds of $ 222 million from sales of available-for-sale securities.

These sales resulted in insignificant

RAYMOND JAMES FINANCIAL, INC.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

Condensed Consolidated Statements of Income and Comprehensive Income.

During the three and six months ended March 31, 2020, there were no sales of available-for-sale securities.

gains in each period, which were included in “Other” revenues on our Condensed Consolidated Statements of Income and Comprehensive Income.

NOTE 6 – DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES

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The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP.

March 31, 2021 September 30, 2020

June 30, 2021 September 30, 2020

$ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount

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See Note 17 for additional information.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2021 2020 2021 2020

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Notes to Condensed Consolidated Financial Statements (Unaudited)

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three and six months ended March 31, 2021 and 2020.

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three and nine months ended June 30, 2021 and 2020.

We expect to reclassify $ 16 million of interest expense out of AOCI and into earnings within the next 12 months.

1 unchanged sentence

The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Condensed Consolidated Statements of Income and Comprehensive Income.

$ in millions Three months ended March 31, Six months ended March 31,

$ in millions Three months ended June 30, Nine months ended June 30,

Location of gain/(loss) 2021 2020 2021 2020

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We may require initial margin or collateral from counterparties in the form of cash or other marketable securities to support certain of these obligations as established by the credit threshold specified by the agreement and/or as a result of monitoring the credit standing of the counterparties.

Our only exposure to credit risk on matched book derivatives is related to our uncollected derivative transaction fee revenues, which were insignificant as of both March 31, 2021 and September 30, 2020.

Our only exposure to credit risk on matched book derivatives is related to our uncollected derivative transaction fee revenues, which were insignificant as of both June 30, 2021 and September 30, 2020.

We are not exposed to market risk on these derivatives due to the pass-through transaction structure described in Note 2 of our 2020 Form 10-K.

3 unchanged sentences

On a daily basis, we monitor our risk exposure on our derivatives based on established limits with respect to a number of factors, including interest rate, foreign exchange spot and forward rates, spread, ratio, basis and volatility risks, both for the total portfolio and by maturity period.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 7 – COLLATERALIZED AGREEMENTS AND FINANCINGS

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Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Collateralized agreements Collateralized financings

$ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total

March 31, 2021

June 30, 2021

Gross amounts of recognized assets/liabilities $ 289 $ 350 $ 639 $ 185 $ 100 $ 285

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In many cases, we are permitted to deliver or repledge financial instruments we have received as collateral to satisfy our collateral requirements under our repurchase agreements, securities lending agreements or other secured borrowings, to satisfy deposit requirements with clearing organizations, or to otherwise meet either our or our clients’ settlement requirements.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Collateral we received that was available to be delivered or repledged $ 3,515 $ 2,869

3 unchanged sentences

The following table presents information about our assets that have been pledged for one of the purposes previously described.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Had the right to deliver or repledge $ 379 $ 325

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Bank loans, net pledged at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank of Atlanta $ 5,581 $ 5,367

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Repurchase agreements, repurchase-to-maturity transactions and securities loaned accounted for as secured borrowings

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$ in millions Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total

March 31, 2021

June 30, 2021

Repurchase agreements:

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Total collateralized financings $ 250 $ — $ — $ — $ 250

As of both March 31, 2021 and September 30, 2020, we did not have any “repurchase-to-maturity” agreements, which are repurchase agreements where a security is transferred under an agreement to repurchase and the maturity date of the repurchase agreement matches the maturity date of the underlying security.

As of both June 30, 2021 and September 30, 2020, we did not have any “repurchase-to-maturity” agreements, which are repurchase agreements where a security is transferred under an agreement to repurchase and the maturity date of the repurchase agreement matches the maturity date of the underlying security.

RAYMOND JAMES FINANCIAL, INC.

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NOTE 8 – BANK LOANS, NET

Bank client receivables are comprised of loans originated or purchased by RJ Bank, N.A.

and include C&I loans, REIT loans, tax-exempt loans, commercial and residential real estate loans, and SBL and other loans.

Bank client receivables are comprised of loans originated or purchased by Raymond James Bank and include C&I loans, REIT loans, tax-exempt loans, commercial and residential real estate loans, and SBL and other loans.

These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured.

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Bank loans are presented on our Condensed Consolidated Statements of Financial Condition at amortized cost (or fair value where applicable) less the allowance for credit losses.

The following table presents the balances for both the held for sale and held for investment loan portfolios, as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio.

March 31, 2021 September 30, 2020

The following table presents the balances for both the held for sale and held for investment loan portfolios, as well as the associated percentage of each portfolio segment in Raymond James Bank’s total loan portfolio.

June 30, 2021 September 30, 2020

$ in millions Balance % Balance %

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Accrued interest receivable on bank loans $ 47 $ 45

The allowance for credit losses as of March 31, 2021 was determined using the new methodology under CECL, which was adopted on October 1, 2020.

The allowance for credit losses as of June 30, 2021 was determined using the new CECL methodology, which was adopted on October 1, 2020.

Prior periods have not been restated and were calculated under the incurred loss methodology.

Accrued interest receivables presented in the preceding table are reported in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition.

At March 31, 2021, the FHLB had a blanket lien on RJ Bank’s residential mortgage loan portfolio as security for the repayment of certain borrowings.

At June 30, 2021, the FHLB had a blanket lien on Raymond James Bank’s residential mortgage loan portfolio as security for the repayment of certain borrowings.

See Note 14 of our 2020 Form 10-K for more information regarding borrowings from the FHLB.

Held for sale loans

RJ Bank originated or purchased $ 528 million and $ 1.11 billion of loans held for sale during the three and six months ended March 31, 2021, respectively, and $ 443 million and $ 1.15 billion during the three and six months ended March 31, 2020, respectively.

Proceeds from the sale of these held for sale loans amounted to $ 207 million and $ 395 million during the three and six months ended March 31, 2021, respectively, and $ 220 million and $ 434 million during the three and six months ended March 31, 2020, respectively.

Net gains resulting from such sales were insignificant in all periods during the three and six months ended March 31, 2021 and 2020.

Raymond James Bank originated or purchased $ 385 million and $ 1.50 billion of loans held for sale during the three and nine months ended June 30, 2021, respectively, and $ 185 million and $ 1.33 billion during the three and nine months ended June 30, 2020, respectively.

Proceeds from the sale of these held for sale loans amounted to $ 230 million and $ 625 million during the three and nine months ended June 30, 2021, respectively, and $ 130 million and $ 564 million during the three and nine months ended June 30, 2020, respectively.

Net gains resulting from such sales were insignificant in all periods during the three and nine months ended June 30, 2021 and 2020.

RAYMOND JAMES FINANCIAL, INC.

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Purchases and sales of loans held for investment

The following table presents purchases and sales of any loans held for investment by portfolio segment.

The following table presents purchases and sales of loans held for investment by portfolio segment.

$ in millions C&I loans CRE loans Residential mortgage loans Total

Three months ended March 31, 2021

Three months ended June 30, 2021

Purchases $ 381 $ — $ 190 $ 571

Sales $ 116 $ — $ — $ 116

Six months ended March 31, 2021

Nine months ended June 30, 2021

Purchases $ 1,041 $ — $ 350 $ 1,391

Sales $ 216 $ — $ — $ 216

Three months ended March 31, 2020

Three months ended June 30, 2020

Purchases $ — $ — $ 113 $ 113

Sales $ 265 $ 27 $ — $ 292

Six months ended March 31, 2020

Nine months ended June 30, 2020

Purchases $ 363 $ 5 $ 371 $ 739

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$ in millions 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual with allowance Nonaccrual with no allowance Current and accruing Total loans held for investment

March 31, 2021

June 30, 2021

C&I loans $ 1 $ — $ 1 $ — $ — $ 8,010 $ 8,011

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Total loans held for investment $ — $ — $ — $ 5 $ 25 $ 21,409 $ 21,439

The preceding table includes $ 15 million at both March 31, 2021 and September 30, 2020 of nonaccrual loans which were current pursuant to their contractual terms.

The table also includes CRE and residential first mortgage loan TDRs of $ 13 million and $ 14 million, respectively, at March 31, 2021 and $ 6 million and $ 15 million, respectively, at September 30, 2020.

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both March 31, 2021 and September 30, 2020.

The preceding table includes $ 28 million and $ 15 million at June 30, 2021 and September 30, 2020, respectively, of nonaccrual loans which were current pursuant to their contractual terms.

The table also includes TDRs of $ 13 million for both CRE and residential first mortgage loans at June 30, 2021, and $ 6 million and $ 15 million, respectively, at September 30, 2020.

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both June 30, 2021 and September 30, 2020.

RAYMOND JAMES FINANCIAL, INC.

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A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral.

At March 31, 2021, we had $ 13 million of collateral-dependent CRE loans, which were fully collateralized by retail and industrial real estate, and $ 6 million of collateral-dependent residential loans, which were fully collateralized by single family homes.

At June 30, 2021, we had $ 27 million of collateral-dependent CRE loans, which were fully collateralized by retail and industrial real estate, and $ 8 million of collateral-dependent residential loans, which were fully collateralized by single family homes.

Collateral-dependent loans do not include loans to borrowers who have been granted forbearance as result of the COVID-19 pandemic or loans for which the borrower had requested a loan modification, where the request had been initiated but had not been approved or completed as of the end of the quarter.

Such loans may be considered collateral-dependent after the forbearance period expires.

The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $ 6 million at both March 31, 2021 and September 30, 2020.

The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $ 4 million and $ 6 million at June 30, 2021 and September 30, 2020, respectively.

Credit quality indicators

The credit quality of RJ Bank’s loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators.

The credit quality of our bank loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators.

These classifications are divided into three groups:

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Special Mention – Loans which have potential weaknesses that deserve management’s close attention.

These loans are not adversely classified and do not expose RJ Bank to sufficient risk to warrant an adverse classification.

These loans are not adversely classified and do not expose us to sufficient risk to warrant an adverse classification.

Substandard – Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any.

Loans with this classification are characterized by the distinct possibility that RJ Bank will sustain some loss if the deficiencies are not corrected.

Loans with this classification are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently-known facts, conditions and values.

Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on RJ Bank’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted.

RJ Bank does not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification.

Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on our books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted.

We do not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification.

RAYMOND JAMES FINANCIAL, INC.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present RJ Bank’s held for investment loan portfolio by year of origination and credit quality indicator as of March 31, 2021.

The following tables present our held for investment bank loan portfolio by year of origination and credit quality indicator as of June 30, 2021.

$ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total

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Notes to Condensed Consolidated Financial Statements (Unaudited)

RJ Bank also monitors the credit quality of the residential mortgage loan portfolio utilizing FICO scores and LTV ratios.

We also monitor the credit quality of the residential mortgage loan portfolio utilizing FICO scores and LTV ratios.

A FICO score measures a borrower’s creditworthiness by considering factors such as payment and credit history.

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The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Below 600 $ 66 $ 67

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$ in millions C&I loans CRE loans REIT loans Tax-exempt loans Residential mortgage loans SBL and other Total

Three months ended March 31, 2021

Three months ended June 30, 2021

Balance at beginning of period

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$ 188 $ 73 $ 26 $ 2 $ 29 $ 4 $ 322

Six months ended March 31, 2021

Nine months ended June 30, 2021

Balance at beginning of period

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$ 188 $ 73 $ 26 $ 2 $ 29 $ 4 $ 322

Three months ended March 31, 2020

Three months ended June 30, 2020

Balance at beginning of period

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$ 185 $ 76 $ 35 $ 13 $ 20 $ 5 $ 334

Six months ended March 31, 2020

Nine months ended June 30, 2020

Balance at beginning of period

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$ 185 $ 76 $ 35 $ 13 $ 20 $ 5 $ 334

The allowance for credit losses on held for investment bank loans decreased $ 33 million to $ 345 million during the three months ended March 31, 2021, primarily due to changes in macroeconomic inputs to our CECL model during the quarter, including an improved outlook for the commercial real estate and residential mortgage bank loan portfolios, partially offset by the impact of weakened equity market forecasts on the C&I and REIT loan portfolios and an increase in criticized loans.

The allowance for credit losses decreased $ 18 million to $ 345 million since the adoption of CECL on October 1, 2020, largely attributable to changes in inputs to our CECL model since our October 1, 2020 adoption date, reflecting improvements in certain forecasted macroeconomic inputs, including unemployment and gross domestic product, partially offset by forecasted declines in commercial real estate values since our CECL adoption date, as well as an increase in criticized loans.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $ 17 million, $ 20 million and $ 12 million at March 31, 2021, December 31, 2020 and September 30, 2020, respectively.

The decrease in the allowance for credit losses on unfunded lending

The allowance for credit losses on held for investment bank loans decreased $ 23 million to $ 322 million during three months ended June 30, 2021, primarily due to an improved forecast for macroeconomic inputs, including unemployment and gross domestic product, and improved credit ratings within the corporate loan portfolio.

The allowance for credit losses decreased $ 41 million to $ 322 million since the adoption of CECL on October 1, 2020, largely attributable to improved forecasts for certain macroeconomic inputs to our CECL model since our adoption date, including improved outlooks on unemployment and gross domestic product, which favorably impact most of our loan portfolios, as well as improved credit ratings within our corporate loan portfolio.

RAYMOND JAMES FINANCIAL, INC.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

commitments during the three months ended March 31, 2021 was primarily due to an improved outlook for commercial real estate compared with December 31, 2020.

The increase in the allowance for credit losses on unfunded lending commitments as of March 31, 2021 compared with September 30, 2020 was predominantly due to the adoption impact of CECL.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $ 15 million, $ 17 million and $ 12 million at June 30, 2021, March 31, 2021 and September 30, 2020, respectively.

The decrease in the allowance for credit losses on unfunded lending commitments during the three months ended June 30, 2021 was primarily due to an improved outlook for commercial real estate compared with March 31, 2021.

The increase in the allowance for credit losses on unfunded lending commitments as of June 30, 2021 compared with September 30, 2020 was predominantly due to the adoption impact of CECL.

See Note 2 for further information about the adoption of CECL and the impact to the allowance for credit losses.

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The following table presents the balances for our loans to financial advisors and the related accrued interest receivable.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Currently affiliated with the firm (1)

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(2) These loans were predominately past due for a period of 180 days or more and on nonaccrual status.

The allowance for credit losses as of March 31, 2021 was determined using the CECL methodology, which we adopted on October 1, 2020.

The allowance for credit losses as of June 30, 2021 was determined using the CECL methodology, which we adopted on October 1, 2020.

Prior periods calculated under the incurred loss methodology have not been restated.

The increase in the allowance from September 30, 2020 to March 31, 2021 was primarily due to the October 1, 2020 CECL adoption, which resulted in an increase in our allowance for credit losses of $ 25 million.

The increase in the allowance from September 30, 2020 to June 30, 2021 was primarily due to the October 1, 2020 CECL adoption, which resulted in an increase in our allowance for credit losses of $ 25 million.

See Note 2 for further information on the CECL adoption.

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$ in millions Aggregate assets Aggregate liabilities

March 31, 2021

June 30, 2021

Private Equity Interests

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Intercompany balances are eliminated in consolidation and not reflected in the following table.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Cash and cash equivalents and assets segregated pursuant to regulations $ 7 $ 9

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The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table.

March 31, 2021 September 30, 2020

June 30, 2021 September 30, 2020

$ in millions Aggregate

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Our goodwill and identifiable intangible assets result from various acquisitions.

During the six months ended March 31, 2021, we acquired NWPS and Financo which resulted in goodwill and identifiable intangible assets.

During the nine months ended June 30, 2021, we acquired NWPS and Financo, both of which resulted in goodwill and identifiable intangible assets.

See Note 3 for additional information on these acquisitions and the related goodwill and identifiable intangible assets.

See Notes 2 and 10 of our 2020 Form 10-K for additional information about our goodwill and intangible assets, including the related accounting policies.

We perform goodwill and indefinite-lived intangible asset impairment testing on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value or indicate that the asset is impaired.

We performed our latest annual impairment testing for our goodwill and indefinite-lived

RAYMOND JAMES FINANCIAL, INC.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

intangible asset as of January 1, 2021, our annual evaluation date, evaluating balances as of December 31, 2020.

We performed our latest annual impairment testing for our goodwill and indefinite-lived intangible asset as of January 1, 2021, our annual evaluation date, evaluating balances as of December 31, 2020.

In this annual evaluation, we performed a qualitative impairment assessment for each of our reporting units that had goodwill, as well as for our indefinite-lived intangible asset.

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The following table presents the balances related to our leases on our Condensed Consolidated Statements of Financial Condition.

The weighted-average remaining lease term and discount-rate for our leases was 5.7 years and 3.80 %, respectively, as of March 31, 2021.

The weighted-average remaining lease term and discount rate for our leases was 5.8 years and 3.70 %, respectively, as of June 30, 2021.

See Note 2 of our 2020 Form 10-K for a discussion of our accounting policies related to leases.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

ROU assets (included in Other assets) $ 344 $ 321

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Lease expense is recognized on a straight-line basis over the lease term if the ROU asset has not been impaired or abandoned.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2021 2020 2021 2020

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Lease liabilities

The maturities by fiscal year of our lease liabilities as of March 31, 2021 are presented in the following table.

The maturities by fiscal year of our lease liabilities as of June 30, 2021 are presented in the following table.

$ in millions

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NOTE 13 – BANK DEPOSITS

Bank deposits include savings and money market accounts, certificates of deposit with RJ Bank, N.A., Negotiable Order of Withdrawal (“NOW”) accounts and demand deposits.

Bank deposits include savings and money market accounts, certificates of deposit with Raymond James Bank, Negotiable Order of Withdrawal (“NOW”) accounts and demand deposits.

The following table presents a summary of bank deposits, as well as the weighted-average interest rates on such deposits.

The calculation of the weighted-average rates were based on the actual deposit balances and rates at each respective period end.

March 31, 2021 September 30, 2020

June 30, 2021 September 30, 2020

$ in millions Balance Weighted-average rate Balance Weighted-average rate

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Total bank deposits $ 30,340 0.07 % $ 26,801 0.09 %

Total bank deposits in the preceding table exclude affiliate deposits of $ 185 million at both March 31, 2021 and September 30, 2020, all of which were held in a deposit account at RJ Bank, N.A.

on behalf of RJF.

Savings and money market accounts in the preceding table consist primarily of deposits that are cash balances swept to RJ Bank, N.A.

from the client investment accounts maintained at Raymond James & Associates, Inc.

Total bank deposits in the preceding table exclude affiliate deposits of $ 185 million at both June 30, 2021 and September 30, 2020, all of which were held in a deposit account at Raymond James Bank on behalf of RJF.

Savings and money market accounts in the preceding table consist primarily of deposits that are cash balances swept to Raymond James Bank from the client investment accounts maintained at Raymond James & Associates, Inc.

These balances are held in Federal Deposit Insurance Corporation (“FDIC”)-insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”).

The aggregate amount of individual time deposit account balances that exceeded the FDIC insurance limit at March 31, 2021 was approximately $ 23 million.

The aggregate amount of individual time deposit account balances that exceeded the FDIC insurance limit at June 30, 2021 was approximately $ 23 million.

The following table sets forth the scheduled maturities of certificates of deposit.

March 31, 2021 September 30, 2020

June 30, 2021 September 30, 2020

$ in millions Denominations

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Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized in the following table.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2021 2020 2021 2020

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The following table summarizes our senior notes payable.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

4.65 % senior notes, due 2030

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5.625 % senior notes, due 2024

3.625 % senior notes, due 2026

Total principal amount 2,050 2,050

Unaccreted premium/(discount)

Unaccreted premium 5 10

Unamortized debt issuance costs ( 18 ) ( 15 )

( 14 ) ( 15 )

Total senior notes payable $ 2,037 $ 2,045

In March 2020, we sold in a registered underwritten public offering $ 500 million in aggregate principal amount of 4.65 % senior notes due April 2030.

In July 2016, we sold in a registered underwritten public offering $ 500 million in aggregate principal amount of 3.625 % senior notes due September 2026.

Interest on these senior notes was payable semi-annually.

In April and May 2021, we repurchased or redeemed, as applicable, all of the outstanding 5.625 % senior notes due April 2024 and 3.625 % senior notes due September 2026.

See the discussion of the tender offers and redemptions of such senior notes described below.

In March 2020, we sold in a registered underwritten public offering $ 500 million in aggregate principal amount of 4.65 % senior notes due April 2030.

Interest on these senior notes is payable semi-annually.

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Treasury rate, plus 45 basis points, plus accrued and unpaid interest thereon to the redemption date.

Senior notes offering

In April 2021, we sold in a registered underwritten public offering $ 750 million in aggregate principal amount of 3.75 % senior notes due April 2051.

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plus, in each case, accrued and unpaid interest thereon to the redemption date.

These senior notes will be reflected on our Condensed Consolidated Statement of Financial Condition beginning in our third fiscal quarter of 2021.

Tender offers and redemptions of certain senior notes

Concurrently with the launch of our offering of $ 750 million in aggregate principal amount of 3.75 % senior notes due April 2051, we commenced cash tender offers (the “Tender Offers”) for any and all of our outstanding 5.625 % senior notes due 2024 and 3.625 % senior notes due 2026 (the “Existing Notes”), pursuant to which we repurchased an aggregate of $ 332 million outstanding Existing Notes for an aggregate purchase price of $ 373 million.

The Tender Offers expired on April 14, 2021.

Concurrently with the launch of our offering of $ 750 million in aggregate principal amount of 3.75 % senior notes due April 2051 described above, we commenced cash tender offers (the “Tender Offers”) for any and all of our then outstanding 5.625 % senior notes due 2024 and 3.625 % senior notes due 2026 (the “Pre-existing Notes”).

Pursuant to the Tender Offers, in April 2021 we repurchased an aggregate of $ 332 million outstanding Pre-existing Notes for an aggregate purchase price of $ 373 million.

In addition, in April 2021 we issued notices of redemption to holders of the Pre-existing Notes pursuant to the indentures governing such notes, to redeem any Pre-existing Notes that remained outstanding following the closing of the Tender Offers.

In May 2021 we redeemed the remaining outstanding balance of the Pre-existing Notes of $ 418 million for an aggregate redemption price of $ 473 million.

These repurchases and redemptions of the Pre-existing Notes were funded with the net proceeds from our 3.75 % senior notes due April 2051 and cash on hand, and resulted in a loss of $ 98 million which is comprised of make-whole premiums, unamortized debt issuance costs which were accelerated, and certain legal and professional fees.

This loss was presented in

RAYMOND JAMES FINANCIAL, INC.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

In addition, on April 1, 2021, we issued notices of redemption to holders of the Existing Notes pursuant to the indentures governing such notes, to redeem any Existing Notes that remained outstanding following the closing of the Tender Offers.

On May 3, 2021, we redeemed the remaining outstanding balance of the Existing Notes of $ 418 million for an aggregate redemption price of $ 473 million.

These repurchases and redemptions were funded with the net proceeds from our offering of 3.75 % senior notes due April 2051 and cash on hand and will result in a charge of approximately $ 97 million as a loss on extinguishment of debt, comprised of make-whole premiums and unamortized debt issuance costs, which will be included on our Condensed Consolidated Statement of Income and Comprehensive Income in our third fiscal quarter of 2021.

“Losses on extinguishment of debt” on our Condensed Consolidated Statements of Income and Comprehensive Income in our third fiscal quarter of 2021.

NOTE 15 – INCOME TAXES

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Effective tax rate

Our effective income tax rate was 21.2 % for the six months ended March 31, 2021, which was lower than the 22.2 % effective tax rate for fiscal year 2020.

Our effective income tax rate was 20.9 % for the nine months ended June 30, 2021, which was lower than the 22.2 % effective tax rate for fiscal 2020.

The decrease in the effective income tax rate was primarily due to an increase in valuation gains associated with our company-owned life insurance policies which are not subject to tax.

Uncertain tax positions

Although management cannot predict with any degree of certainty the timing of ultimate resolution of matters under review by various taxing jurisdictions, it is reasonably possible that the Company’s uncertain tax position liability balance may decrease within the next 12 months by up to $ 8 million as a result of the expiration of statutes of limitations and the completion of tax authorities’ examinations.

Although management cannot predict with any degree of certainty the timing of ultimate resolution of matters under review by various taxing jurisdictions, it is reasonably possible that our uncertain tax position liability balance may decrease within the next 12 months by up to $ 4 million as a result of the expiration of statutes of limitations and the completion of tax authorities’ examinations.

NOTE 16 – COMMITMENTS, CONTINGENCIES AND GUARANTEES

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In the normal course of business, we enter into commitments for debt and equity underwritings.

As of March 31, 2021, we had five such open underwriting commitments, which were subsequently settled in open market transactions and did not result in significant losses.

As of June 30, 2021, we had three such open underwriting commitments, which were subsequently settled in open market transactions and did not result in significant losses.

Lending commitments and other credit-related financial instruments

RJ Bank has outstanding, at any time, a significant number of commitments to extend credit and other credit-related off-balance sheet financial instruments, such as standby letters of credit and loan purchases, which then extend over varying periods of time.

Raymond James Bank has outstanding, at any time, a significant number of commitments to extend credit and other credit-related off-balance sheet financial instruments, such as standby letters of credit and loan purchases, which then extend over varying periods of time.

These arrangements are subject to strict underwriting assessments and each customer’s credit worthiness is evaluated on a case-by-case basis.

Fixed-rate commitments are subject to market risk resulting from fluctuations in interest rates and our exposure is limited to the replacement value of those commitments.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding.

$ in millions March 31, 2021 September 30, 2020

The following table presents Raymond James Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding.

$ in millions June 30, 2021 September 30, 2020

Open-end consumer lines of credit (primarily SBL)

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$ 1,813 $ 1,482

Unfunded loan commitments

Unfunded lending commitments

Standby letters of credit

Open-end consumer lines of credit primarily represent the unfunded amounts of RJ Bank loans to consumers that are secured by marketable securities at advance rates consistent with industry standards.

The proceeds from repayment or, if necessary, the liquidation of collateral, which is monitored daily, are expected to satisfy the amounts drawn against these existing lines of credit.

Open-end consumer lines of credit primarily represent the unfunded amounts of bank loans to consumers that are secured by marketable securities at advance rates consistent with industry standards.

The proceeds from repayment or, if necessary, the liquidation of collateral, which is monitored daily, are expected to satisfy the amounts drawn against these existing lines of

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

These lines of credit are primarily uncommitted, as we reserve the right to not make any advances or may terminate these lines at any time.

Because many of RJ Bank’s lending commitments expire without being funded in whole or in part, the contractual amounts are not estimates of our actual future credit exposure or future liquidity requirements.

Because many of Raymond James Bank’s lending commitments expire without being funded in whole or in part, the contractual amounts are not estimates of our actual future credit exposure or future liquidity requirements.

The allowance for credit losses calculated under CECL provides for potential losses related to the unfunded lending commitments.

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Investment commitments

We had unfunded commitments to various investments, including private equity investments and certain RJ Bank investments, of $ 38 million as of March 31, 2021.

We had unfunded commitments to various investments, including private equity investments and certain Raymond James Bank investments, of $ 37 million as of June 30, 2021.

Other commitments

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Until such investments are sold to LIHTC funds, RJTCF is responsible for funding investment commitments to such partnerships.

As of March 31, 2021, RJTCF had committed approximately $ 178 million to project partnerships that had not yet been sold to LIHTC funds.

As of June 30, 2021, RJTCF had committed approximately $ 167 million to project partnerships that had not yet been sold to LIHTC funds.

Because we expect to sell these project partnerships to LIHTC funds and the equity funding events arise over future periods, the contractual commitments are not expected to materially impact our future liquidity requirements.

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See Note 2 of our 2020 Form 10-K for further discussion of these activities.

At March 31, 2021, we had $ 263 million of principal amount of outstanding forward MBS purchase commitments, which were expected to be purchased within 90 days following commitment.

At June 30, 2021, we had $ 222 million of principal amount of outstanding forward MBS purchase commitments, which were expected to be purchased within 90 days following commitment.

In order to hedge the market interest rate risk to which we would otherwise be exposed between the date of the commitment and the date of sale of the MBS, we enter into TBA security contracts with investors for generic MBS at specific rates and prices to be delivered on settlement dates in the future.

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These TBA securities and related purchase commitments are accounted for at fair value.

As of March 31, 2021, the fair value of the TBA securities and the estimated fair value of the purchase commitments were insignificant.

As of June 30, 2021, the fair value of the TBA securities and the estimated fair value of the purchase commitments were insignificant.

For information regarding our lease commitments, including the maturities of our lease liabilities, see Note 12.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

broker-dealer subsidiaries are required by federal law to be members of the Securities Investors Protection Corporation (“SIPC”).

6 unchanged sentences

We guarantee the debt of one of our private equity investments.

The amount of such debt, including the undrawn portion of a revolving credit facility, was $ 13 million as of March 31, 2021.

The amount of such debt, including the undrawn portion of a revolving credit facility, was $ 13 million as of June 30, 2021.

The debt, which matures in 2022, is secured by substantially all of the assets of the borrower.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Legal and regulatory matter contingencies

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There are certain matters for which we are unable to estimate the upper end of the range of reasonably possible loss.

With respect to legal and regulatory matters for which management has been able to estimate a range of reasonably possible loss as of March 31, 2021, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $ 180 million in excess of the aggregate accruals for such matters.

With respect to legal and regulatory matters for which management has been able to estimate a range of reasonably possible loss as of June 30, 2021, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $ 175 million in excess of the aggregate accruals for such matters.

Refer to Note 2 of our 2020 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies.

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net investment hedges and currency translations Available- for-sale securities Cash flow hedges Total

Three months ended March 31, 2021

Three months ended June 30, 2021

AOCI as of beginning of period

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Amounts reclassified from AOCI, before tax

— — — ( 2 ) 3 1

Pre-tax net OCI ( 12 ) 14 2 34 ( 4 ) 32

3 unchanged sentences

$ 67 $ ( 67 ) $ — $ 21 $ ( 31 ) $ ( 10 )

Six months ended March 31, 2021

Nine months ended June 30, 2021

AOCI as of beginning of period

10 unchanged sentences

$ 67 $ ( 67 ) $ — $ 21 $ ( 31 ) $ ( 10 )

Three months ended March 31, 2020

Three months ended June 30, 2020

AOCI as of beginning of period

11 unchanged sentences

$ 128 $ ( 159 ) $ ( 31 ) $ 88 $ ( 56 ) $ 1

Six months ended March 31, 2020

Nine months ended June 30, 2020

AOCI as of beginning of period

11 unchanged sentences

$ 128 $ ( 159 ) $ ( 31 ) $ 88 $ ( 56 ) $ 1

Reclassifications from AOCI to net income, excluding taxes, for the three and six months ended March 31, 2021 were primarily recorded in “Other” revenue and “Interest expense” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Our net investment hedges and cash flow hedges relate to our derivatives associated with RJ Bank’s business operations.

See Note 2 of our 2020 Form 10-K and Note 6 for additional information on these derivatives.

Reclassifications from AOCI to net income, excluding taxes, for the three and nine months ended June 30, 2021 were primarily recorded in “Other” revenue and “Interest expense” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Our net investment hedges and cash flow hedges relate to our derivatives associated with Raymond James Bank’s business operations.

For further information about our significant accounting policies related to derivatives, see Note 2 of our 2020 Form 10-K.

See Note 6 of this Form 10-Q for additional information on these derivatives.

RAYMOND JAMES FINANCIAL, INC.

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See Note 23 of this Form 10-Q for additional information on our segment results.

Three months ended March 31, 2021

$ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total

Three months ended June 30, 2021

$ in millions Private Client Group Capital Markets Asset Management Raymond James Bank Other and intersegment eliminations Total

Asset management and related administrative fees $ 1,050 $ 1 $ 218 $ — $ ( 7 ) $ 1,262

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All other (1)

7 1 1 8 21 38

Total other 7 18 1 8 21 55

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Notes to Condensed Consolidated Financial Statements (Unaudited)

Three months ended March 31, 2020

$ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total

Three months ended June 30, 2020

$ in millions Private Client Group Capital Markets Asset Management Raymond James Bank Other and intersegment eliminations Total

Asset management and related administrative fees $ 715 $ 1 $ 157 $ — $ ( 6 ) $ 867

32 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

Six months ended March 31, 2021

$ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total

Nine Months Ended June 30, 2021

$ in millions Private Client Group Capital Markets Asset Management Raymond James Bank Other and intersegment eliminations Total

Asset management and related administrative fees $ 2,914 $ 3 $ 607 $ — $ ( 22 ) $ 3,502

32 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

Six months ended March 31, 2020

$ in millions Private Client Group Capital Markets Asset Management RJ Bank Other and intersegment eliminations Total

Nine Months Ended June 30, 2020

$ in millions Private Client Group Capital Markets Asset Management Raymond James Bank Other and intersegment eliminations Total

Asset management and related administrative fees $ 2,330 $ 4 $ 510 $ — $ ( 16 ) $ 2,828

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(1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers.

At March 31, 2021 and September 30, 2020, net receivables related to contracts with customers were $ 357 million and $ 342 million, respectively.

At June 30, 2021 and September 30, 2020, net receivables related to contracts with customers were $ 359 million and $ 342 million, respectively.

RAYMOND JAMES FINANCIAL, INC.

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The following table details the components of interest income and interest expense.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2021 2020 2021 2020

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Total interest expense

40 42 115 136

Net interest income 165 175 493 663

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however, we are also permitted to issue new shares.

Annual share-based compensation awards are primarily issued during the fiscal first quarter of each year.

Annual share-based compensation awards are primarily issued during our fiscal first quarter of each year.

Our share-based compensation accounting policies are described in Note 2 of our 2020 Form 10-K.

Other information related to our share-based awards is presented in Note 21 of our 2020 Form 10-K.

During the three and six months ended March 31, 2021, we granted approximately 150 thousand and 1.5 million RSUs, respectively, to employees and outside members of our Board of Directors with a weighted-average grant-date fair value of $ 116.73 and $ 93.63 , respectively.

For the three and six months ended March 31, 2021, total compensation expense for RSUs granted to our employees and members of our Board of Directors was $ 30 million and $ 71 million, respectively, compared with $ 27 million and $ 67 million for the three and six months ended March 31, 2020, respectively.

As of March 31, 2021, there were $ 231 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs granted to employees and members of our Board of Directors, including those granted during the six months ended March 31, 2021.

During the three and nine months ended June 30, 2021, we granted approximately 50 thousand and 1.5 million RSUs, respectively, to employees and outside members of our Board of Directors with a weighted-average grant-date fair value of $ 131.81 and $ 94.75 , respectively.

For the three and nine months ended June 30, 2021, total compensation expense for RSUs granted to our employees and members of our Board of Directors was $ 27 million and $ 98 million, respectively, compared with $ 22 million and $ 89 million for the three and nine months ended June 30, 2020, respectively.

As of June 30, 2021, there were $ 209 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs granted to employees and members of our Board of Directors, including those granted during the nine months ended June 30, 2021.

These costs are expected to be recognized over a weighted-average period of 3.1 years.

NOTE 21 – REGULATORY CAPITAL REQUIREMENTS

RJF, as a bank holding company and financial holding company, RJ Bank, N.A., Raymond James Trust, N.A.

RJF, as a bank holding company and financial holding company, Raymond James Bank, our banking subsidiary, Raymond James Trust, N.A.

(“RJ Trust”), and our broker-dealer subsidiaries are subject to capital requirements by various regulatory authorities.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

As a bank holding company, RJF is subject to the risk-based capital requirements of the Fed.

These risk-based capital requirements are expressed as capital ratios that compare measures of regulatory capital to risk-weighted assets, which incorporates quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under the applicable regulatory guidelines.

RJF’s and RJ Bank, N.A.’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings, and other factors.

RJF and RJ Bank, N.A.

are required to maintain minimum amounts and ratios of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), Tier 1 capital to average assets (as defined), and under rules defined under the Basel III capital framework, Common equity Tier 1 capital (“CET1”) to risk-weighted assets.

RJF and RJ Bank, N.A.

each calculate these ratios under the Basel III standardized approach in order to assess compliance with both regulatory requirements and their internal capital policies.

As a bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHC Act”) that has made an election to be a financial holding company (“FHC”), RJF is subject to supervision, examination and regulation by the Fed.

We are subject to the Fed’s capital rules which establish an integrated regulatory capital framework and implement, in the U.S., the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act.

We apply the standardized approach for calculating risk-weighted assets and are also subject to the market risk provisions of the Fed’s capital rules (“market risk rule”).

Under these rules, minimum requirements are established for both the quantity and quality of capital held by banking organizations.

RJF and Raymond James Bank are required to maintain minimum ratios of common equity tier 1 (“CET1”), tier 1 and total capital to risk-weighted assets, as well as minimum leverage ratios (defined as tier 1 capital divided by adjusted average assets).

These capital ratios incorporate quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under the regulatory capital rules and are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors.

RJF and Raymond James Bank each calculate these ratios in order to assess compliance with both regulatory requirements and their internal capital policies.

In order to maintain our ability to take certain capital actions, including dividends and common equity repurchases, and to make bonus payments, we must hold a capital conservation buffer above our minimum risk-based capital requirements.

As of March 31, 2021, both RJF’s and RJ Bank, N.A.’s capital levels exceeded the capital conservation buffer requirement and were each categorized as “well-capitalized.”

As of June 30, 2021, both RJF’s and Raymond James Bank’s capital levels exceeded the capital conservation buffer requirement and were each categorized as “well-capitalized.”

For further discussion of regulatory capital requirements applicable to certain of our businesses and subsidiaries, see Note 22 of our 2020 Form 10-K.

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$ in millions Amount Ratio Amount Ratio Amount Ratio

RJF as of March 31, 2021:

RJF as of June 30, 2021:

CET1 $ 7,040 24.4 % $ 1,297 4.5 % $ 1,874 6.5 %

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Tier 1 leverage $ 6,490 14.2 % $ 1,824 4.0 % $ 2,280 5.0 %

As of March 31, 2021 RJF’s Tier 1 and Total capital ratios declined compared to September 30, 2020, primarily resulting from an increase in risk-weighted assets, partially offset by an increase in equity due to positive earnings, net of dividends and share repurchases.

The increase in risk-weighted assets was primarily driven by increases in our loan portfolio and market risk-equivalent assets.

RJF’s Tier 1 leverage ratio at March 31, 2021 decreased compared to September 30, 2020 due to increased average assets, driven by higher assets segregated pursuant to regulations due to an increase in client cash in the Client Interest Program (“CIP”), as well as growth in available-for-sale securities and loans.

Our regulatory capital ratios as of March 31, 2021 were also negatively impacted by the increase in goodwill and intangible assets arising from our acquisitions of NWPS and Financo.

See Note 3 for additional information on our fiscal 2021 acquisitions.

As of June 30, 2021, RJF’s regulatory capital increase was driven by positive earnings, partially offset by dividends and share repurchases, as well as an increase in goodwill and identifiable intangible assets arising from the NWPS and Financo acquisitions.

See Note 3 for additional information.

RJF’s Tier 1 and Total capital ratios increased compared to September 30, 2020, resulting from the increase in regulatory capital, partially offset by an increase in risk-weighted assets.

The increase in risk-weighted assets was driven by increases in our loan portfolio and available-for-sale securities.

RJF’s Tier 1 leverage ratio at June 30, 2021 decreased compared to September 30, 2020 due to increased average assets, driven by higher assets segregated pursuant to regulations due to an increase in client cash in the Client Interest Program (“CIP”), as well as growth in loans and available-for-sale securities.

The impact of higher average assets was partially offset by the increase in regulatory capital.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

To meet the requirements for capital adequacy or to be categorized as “well-capitalized,” RJ Bank, N.A.

must maintain CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table.

To meet the requirements for capital adequacy or to be categorized as “well-capitalized,” Raymond James Bank must maintain CET1, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table.

Actual Requirement for capital

2 unchanged sentences

$ in millions Amount Ratio Amount Ratio Amount Ratio

RJ Bank, N.A.

as of March 31, 2021:

Raymond James Bank as of June 30, 2021:

CET1 $ 2,542 13.5 % $ 848 4.5 % $ 1,225 6.5 %

4 unchanged sentences

Tier 1 leverage $ 2,542 7.5 % $ 1,355 4.0 % $ 1,693 5.0 %

RJ Bank, N.A.

as of September 30, 2020:

Raymond James Bank as of September 30, 2020:

CET1 $ 2,279 13.0 % $ 788 4.5 % $ 1,138 6.5 %

2 unchanged sentences

Tier 1 leverage $ 2,279 7.7 % $ 1,183 4.0 % $ 1,479 5.0 %

RJ Bank, N.A.’s Tier 1 capital and Total capital ratios at March 31, 2021 increased compared to September 30, 2020, due to positive earnings, partially offset by growth in loans and available-for-sale securities.

RJ Bank, N.A.’s Tier 1 leverage ratio at March 31, 2021 decreased compared to September 30, 2020, due to increased average assets, driven by the growth in available-for-sale securities and loans.

As of June 30, 2021, Raymond James Bank’s regulatory capital increase was driven by positive earnings.

Raymond James Bank’s Tier 1 capital and Total capital ratios at June 30, 2021 increased compared to September 30, 2020, due to the increase in regulatory capital, partially offset by the impact of higher risk-weighted assets, primarily resulting from increases in our loan portfolio and available-for-sale securities.

Raymond James Bank’s Tier 1 leverage ratio at June 30, 2021 decreased compared to September 30, 2020, due to increased average assets, driven by the growth in loans and available-for-sale securities, which was partially offset by the impact of the increase in regulatory capital.

Certain of our broker-dealer subsidiaries are subject to the requirements of the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934.

The following table presents the net capital position of RJ&A.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Raymond James & Associates, Inc.

7 unchanged sentences

$ 1,753 $ 1,193

As of March 31, 2021, Raymond James Financial Services, Inc.

As of June 30, 2021, Raymond James Financial Services, Inc.

(“RJFS”), Raymond James Ltd.

5 unchanged sentences

The following table presents the computation of basic and diluted earnings per common share.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

in millions, except per share amounts 2021 2020 2021 2020

16 unchanged sentences

3.9 2.3 3.4 2.6

Average common shares used in diluted computation

141.2 141.1 140.4 141.3

Average common and common equivalent shares used in diluted computation 141.1 139.4 140.6 140.5

Earnings per common share:

4 unchanged sentences

The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the period to participating securities, consisting of certain RSUs, plus an allocation of undistributed earnings to such participating securities.

Participating securities and related dividends paid on these participating securities were insignificant for the three and six months ended March 31, 2021 and 2020.

Participating securities and related dividends paid on these participating securities were insignificant for the three and nine months ended June 30, 2021 and 2020.

Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

Dividends per common share declared and paid are detailed in the following table for each respective period.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

2021 2020 2021 2020

5 unchanged sentences

Asset Management;

Raymond James Bank;

The segments are determined based upon factors such as the services provided and the distribution channels served and are consistent with how we assess performance and determine how to allocate our resources.

4 unchanged sentences

The following table presents information concerning operations in these segments.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2021 2020 2021 2020

5 unchanged sentences

225 163 629 531

160 210 327 426

Raymond James Bank 169 178 496 604

2 ( 20 ) ( 6 ) ( 72 )

8 unchanged sentences

105 60 275 206

111 14 182 149

Raymond James Bank 104 14 286 163

( 134 ) ( 29 ) ( 206 ) ( 106 )

3 unchanged sentences

The following table presents our net interest income on a segment basis.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2021 2020 2021 2020

4 unchanged sentences

Asset Management

155 205 312 415

Raymond James Bank 161 169 473 584

Other ( 26 ) ( 23 ) ( 69 ) ( 36 )

1 unchanged sentence

The following table presents our total assets on a segment basis.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Total assets:

3 unchanged sentences

Asset Management

33,010 30,356

Raymond James Bank 34,363 30,356

Other 2,101 1,836

1 unchanged sentence

The following table presents goodwill, which was included in our total assets, on a segment basis.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Private Client Group (1)

3 unchanged sentences

(1) The balance includes $ 139 million of goodwill arising from our acquisition of NWPS in December 2020.

(2) The balance includes a provisional estimate of $ 30 million of goodwill arising from our acquisition of Financo in March 2021.

(2) The balance includes $ 30 million of goodwill arising from our acquisition of Financo in March 2021.

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

The following table presents our net revenues and pre-tax income classified by major geographic area in which they were earned.

Three months ended March 31, Six months ended March 31,

Three months ended June 30, Nine months ended June 30,

$ in millions 2021 2020 2021 2020

4 unchanged sentences

Total $ 2,471 $ 1,834 $ 7,065 $ 5,911

Pre-tax income/(loss):

Pre-tax income:

$ 353 $ 191 $ 1,165 $ 770

3 unchanged sentences

The following table presents our total assets by major geographic area in which they were held.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Total assets:

4 unchanged sentences

The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held.

$ in millions March 31, 2021 September 30, 2020

$ in millions June 30, 2021 September 30, 2020

Total $ 637 $ 466

(1) The balance includes $ 139 million of goodwill arising from our acquisition of NWPS in December 2020 and a provisional estimate of $ 30 million of goodwill arising from our acquisition of Financo in March 2021.

(1) The balance includes $ 139 million of goodwill arising from our acquisition of NWPS in December 2020 and $ 30 million of goodwill arising from our acquisition of Financo in March 2021.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements