What changed in this filing

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Item 1. Financial Statements

2024-02-07 compared with 2023-08-04 · 303 added, 572 removed, 1370 unchanged (39% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

$ in millions, except per share amounts June 30, 2023 September 30, 2022

$ in millions, except per share amounts December 31, 2023 September 30, 2023

Cash and cash equivalents $ 10,206 $ 9,313

32 unchanged sentences

650,000,000 shares authorized;

248,561,711 shares issued and 208,498,326 shares outstanding as of June 30, 2023;

249,682,751 shares issued and 208,665,962 shares outstanding as of December 31, 2023;

248,728,805 shares issued and 208,769,095 shares outstanding as of September 30, 2023

2 unchanged sentences

Treasury stock, at cost;

40,063,385 and 32,896,041 common shares as of June 30, 2023 and September 30, 2022, respectively

41,016,789 and 39,959,710 common shares as of December 31, 2023 and September 30, 2023, respectively

( 2,365 ) ( 2,252 )

1 unchanged sentence

Total equity attributable to Raymond James Financial, Inc.

10,790 10,214

Noncontrolling interests ( 9 ) ( 27 )

5 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

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

Three months ended December 31,

in millions, except per share amounts

6 unchanged sentences

Investment banking

151 223 446 883

Interest income

987 374 2,729 841

57 30 133 108

Total revenues

3,293 2,778 9,477 8,307

Interest expense

( 507 ) ( 241 )

2,907 2,718 8,566 8,172

Non-interest expenses:

Compensation, commissions and benefits

1,851 1,834 5,407 5,570

Non-compensation expenses:

Communications and information processing

149 129 441 368

Occupancy and equipment

68 65 202 186

Business development

66 58 176 127

Investment sub-advisory fees

40 38 110 116

Professional fees

Bank loan provision for credit losses 12 14

158 85 334 240

Total non-compensation expenses 462 398

1 unchanged sentence

Pre-tax income

486 415 1,695 1,406

Provision for income taxes

117 114 390 336

Net income 498 509

6 unchanged sentences

Weighted-average common shares outstanding – basic

210.1 210.7 213.0 208.1

Weighted-average common and common equivalent shares outstanding – diluted

214.8 215.7 218.0 213.5

$ 369 $ 301 $ 1,305 $ 1,070

Other comprehensive income/(loss), net of tax:

Available-for-sale securities

( 76 ) ( 157 ) 68 ( 532 )

Currency translations, net of the impact of net investment hedges 29 46

Cash flow hedges

12 10 ( 1 ) 48

Total other comprehensive income/(loss), net of tax ( 44 ) ( 187 ) 140 ( 535 )

Total other comprehensive income, net of tax

Total comprehensive income $ 776 $ 600

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

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

Three months ended December 31,

$ in millions, except per share amounts 2023 2022

1 unchanged sentence

Balance beginning of period

$ 120 $ — $ 120 $ —

Preferred stock issued for TriState Capital Holdings, Inc.

(“TriState Capital”) acquisition — 120 — 120

Redemption of preferred stock ( 41 ) — ( 41 ) —

Share issuances

Balance end of period

79 120 79 120

Common stock, par value $ .01 per share:

4 unchanged sentences

Balance beginning of period

2,093 2,987 2,088

Common stock issued for TriState Capital acquisition — 778 — 778

Restricted stock awards issued for TriState Capital acquisition — 28 — 28

Employee stock purchases

Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures ( 82 ) ( 99 )

( 3 ) ( 110 ) ( 125 )

Share-based compensation amortization 89 80

Balance end of period

3,099 2,948 3,099 2,948

Retained earnings:

Balance beginning of period

8,256 8,843 7,633

Net income 369

301 1,305 1,070

Net income attributable to Raymond James Financial, Inc.

Common and preferred stock cash dividends declared (see Note 16)

1 unchanged sentence

Balance end of period

9,870 8,478 9,870 8,478

Treasury stock:

9 unchanged sentences

( 971 ) ( 982 )

Other comprehensive income/(loss), net of tax ( 44 ) ( 187 ) 140 ( 535 )

Other comprehensive income, net of tax

Balance end of period

5 unchanged sentences

$ ( 27 ) $ ( 26 )

Net income/(loss) attributable to noncontrolling interests ( 1 ) 1 ( 1 ) 1

Deconsolidations and sales — ( 31 ) — ( 82 )

Consolidations

Balance end of period

( 27 ) ( 23 ) ( 27 ) ( 23 )

Total shareholders’ equity

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine months ended June 30,

Three months ended December 31,

$ in millions 2023 2022

Cash flows from operating activities:

$ 1,305 $ 1,070

Adjustments to reconcile net income to net cash used in operating activities:

Adjustments to reconcile net income to net cash provided by/(used in) operating activities:

Depreciation and amortization 42 40

1 unchanged sentence

Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments ( 12 ) ( 11 )

Provisions for credit losses and legal and regulatory proceedings 191 72

Provisions for credit losses and legal and regulatory matters, net

Share-based compensation expense 90 81

Unrealized (gain)/loss on company-owned life insurance policies, net of expenses ( 125 ) 136

Unrealized gain on company-owned life insurance policies, net of expenses

( 87 ) ( 48 )

Other ( 8 ) ( 10 )

Net change in:

Assets segregated for regulatory purposes excluding cash and cash equivalents — 101

Collateralized agreements, net of collateralized financings 143 97

15 unchanged sentences

Available-for-sale securities maturations, repayments and redemptions

Proceeds from sales of available-for-sale securities

Cash and cash equivalents acquired in business acquisitions, including those segregated for regulatory purposes, net of cash paid for acquisitions — 1,769

Additions to property and equipment

( 50 ) ( 27 )

Sales of Federal Home Loan Bank stock, net 3 —

Investment in note receivable — ( 125 )

Purchases of other investments, net ( 6 ) ( 33 )

Investment in solar tax credit equity investment ( 15 ) —

Other investing activities, net ( 26 ) ( 31 )

Net cash provided by/(used in) investing activities 68 ( 5,119 )

Net cash used in investing activities

( 176 ) ( 666 )

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine months ended June 30,

Three months ended December 31,

$ in millions 2023 2022

2 unchanged sentences

Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements ( 199 ) ( 189 )

Dividends on preferred and common stock ( 266 ) ( 200 )

Dividends on common and preferred stock

( 97 ) ( 81 )

Exercise of stock options and employee stock purchases 10 11

Redemption of preferred stock ( 40 ) —

Proceeds from Federal Home Loan Bank advances 750 650

15 unchanged sentences

Non-cash right-of-use assets recorded for new and modified leases $ 17 $ 13

Common stock issued as consideration for TriState Capital acquisition $ — $ 778

Restricted stock awards issued as consideration for TriState Capital acquisition $ — $ 28

Preferred stock issued as consideration for TriState Capital acquisition $ — $ 120

Effective settlement of note receivable for TriState Capital acquisition $ — $ 123

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

5 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

December 31, 2023

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

16 unchanged sentences

These unaudited condensed consolidated financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and Notes thereto included in our 2023 Form 10-K.

To prepare condensed consolidated financial statements in accordance with GAAP, we must make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period.

To prepare condensed consolidated financial statements in accordance with GAAP, we must make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period.

Actual results could differ from those estimates and could have a material impact on the condensed consolidated financial statements.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period’s presentation.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 2 – UPDATE OF SIGNIFICANT ACCOUNTING POLICIES

A summary of our significant accounting policies is included in Note 2 of our 2023 Form 10-K.

There have been no significant changes in our significant accounting policies since September 30, 2022.

During the three months ended December 31, 2023, 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 2024

In March 2022, the Financial Accounting Standards Board (“FASB”) issued new guidance related to troubled debt restructurings (“TDRs”) and disclosures regarding write-offs of financing receivables (ASU 2022-02), amending guidance related to the measurement of credit losses on financial instruments (ASU 2016-13).

The update eliminates the requirement to use a discounted cash flow approach to measure the allowance for credit losses for TDRs and instead allows for the use of a current expected credit loss (“CECL”) approach for all loans.

Under a CECL approach, the impact of loan modifications and the subsequent performance of modified loans, including defaults, is reflected in the historical loss data used to calculate expected lifetime credit losses.

In addition, the update requires new disclosures about modifications granted to borrowers experiencing financial difficulty in the form of principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, or a combination of these modifications.

The update also requires new disclosures for the financial effects of these modifications and for loan performance in the twelve months following the modification, and also requires disclosure of current period gross charge-offs by year of origination.

We adopted this guidance on a prospective basis as of October 1, 2023, which did not have a material impact on our financial position or results of operations.

Refer to Note 7 for additional disclosures required by this guidance and changes to our accounting policies as a result of this adoption.

See Note 2 of our 2023 Form 10-K for a discussion of our accounting policies related to our nonperforming assets and allowance for credit losses.

RAYMOND JAMES FINANCIAL, INC.

3 unchanged sentences

Our “Financial instruments” and “Financial instrument liabilities” on our Condensed Consolidated Statements of Financial Condition are recorded at fair value.

For further information about such instruments and our significant accounting policies related to fair value, see Notes 2 and 4 of our 2022 Form 10-K.

See Notes 2 and 4 of our 2023 Form 10-K for further information about such instruments and our significant accounting policies related to fair value.

The following tables present assets and liabilities measured at fair value on a recurring basis.

2 unchanged sentences

$ in millions Level 1 Level 2 Level 3 Netting

adjustments Balance as of June 30, 2023

adjustments Balance as of December 31, 2023

Assets at fair value on a recurring basis:

12 unchanged sentences

1,149 8,049 — — 9,198

Derivative assets:

Interest rate 9 414 — ( 199 ) 224

Foreign exchange — 5 — — 5

Total derivative assets 9 419 — ( 199 ) 229

Derivative assets - interest rate 8 375 — ( 188 ) 195

All other investments:

16 unchanged sentences

Interest rate 9 400 — ( 114 ) 295

Other — — 4 — 4

Foreign exchange — 15 — — 15

Total derivative liabilities 9 415 — ( 114 ) 310

64 unchanged sentences

In the following tables, gains/(losses) on trading and derivative instruments are reported in “ Principal transactions ” and gains/(losses) on other investments are reported in “ Other ” revenues on our Condensed Consolidated Statements of Income and Comprehensive Income.

Three months ended June 30, 2023

Three months ended December 31, 2023

Level 3 instruments at fair value

3 unchanged sentences

Fair value beginning of period

$ 3 $ 28 $ ( 4 )

Total gains/(losses) included in earnings — ( 1 ) —

4 unchanged sentences

Fair value end of period

$ 9 $ 29 $ ( 4 )

Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period

Nine Months Ended June 30, 2023

$ — $ ( 1 ) $ —

Three months ended December 31, 2022

Level 3 instruments at fair value

5 unchanged sentences

Total gains/(losses) included in earnings — 1 ( 1 )

( 1 ) — ( 1 )

Purchases and contributions

6 unchanged sentences

$ ( 1 ) $ 1 $ ( 1 )

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three months ended June 30, 2022

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Derivative assets Other investments Trading liabilities Derivative liabilities

$ in millions Other Other All other Other Other

Fair value beginning of period

$ 13 $ — $ 53 $ ( 1 ) $ —

Total gains/(losses) included in earnings ( 1 ) 2 — 1 ( 1 )

Purchases and contributions

Sales, distributions, and deconsolidations ( 49 ) — ( 2 ) — —

Into Level 3 — — — — —

Out of Level 3 — — — — —

Fair value end of period

$ — $ 2 $ 51 $ — $ ( 1 )

Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period

$ — $ 2 $ 5 $ — $ ( 1 )

Nine Months Ended June 30, 2022

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Derivative assets Other investments Derivative liabilities

$ in millions Other Other All other Other

Fair value beginning of period

$ 14 $ — $ 98 $ ( 1 )

Total gains/(losses) included in earnings

Purchases and contributions

Sales, distributions, and deconsolidations ( 106 ) — ( 42 ) —

Into Level 3 — — — —

Out of Level 3 — — ( 12 ) —

Fair value end of period

$ — $ 2 $ 51 $ ( 1 )

Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period

$ — $ 2 $ 5 $ ( 1 )

As of June 30, 2023, 15 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis.

In comparison, as of September 30, 2022, 14 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis.

As of both June 30, 2023 and September 30, 2022, Level 3 assets represented less than 1 % of our assets measured at fair value on a recurring basis.

As of both December 31, 2023 and September 30, 2023, 14 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis.

As of both December 31, 2023 and September 30, 2023, Level 3 assets represented less than 1 % of our assets measured at fair value on a recurring basis.

Investments in private equity measured at net asset value per share

1 unchanged sentence

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 June 30, 2023 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments.

Our private equity portfolio as of December 31, 2023 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments.

Our investments cannot be redeemed directly with the funds.

5 unchanged sentences

$ in millions Recorded value Unfunded commitment

June 30, 2023

December 31, 2023

Private equity investments measured at NAV $ 101 $ 25

11 unchanged sentences

(weighted-average)

June 30, 2023

December 31, 2023

Residential mortgage loans $ 2 $ 8 $ 10 Collateral or

20 unchanged sentences

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 on the Condensed Consolidated Statements of Financial Condition at June 30, 2023 and September 30, 2022.

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

Refer to Note 4 of our 2022 Form 10-K for a discussion of the fair value hierarchy classifications of our financial instruments that are not recorded at fair value.

See Note 4 of our 2023 Form 10-K for a discussion of our financial instruments that are not recorded at fair value.

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

June 30, 2023

December 31, 2023

Financial assets:

17 unchanged sentences

NOTE 4 – AVAILABLE-FOR-SALE SECURITIES

Refer to Note 2 of our 2022 Form 10-K for a discussion of our accounting policies applicable to our available-for-sale securities.

See Note 2 of our 2023 Form 10-K for a discussion of our accounting policies applicable to our available-for-sale securities.

The following table details the amortized costs and fair values of our available-for-sale securities.

3 unchanged sentences

unrealized losses Fair value

June 30, 2023

December 31, 2023

Agency residential MBS $ 4,665 $ 2 $ ( 451 ) $ 4,216

17 unchanged sentences

Total available-for-sale securities $ 10,433 $ — $ ( 1,252 ) $ 9,181

The amortized costs and fair values in the preceding table exclude $ 28 million and $ 24 million of accrued interest on available-for-sale securities as of June 30, 2023 and September 30, 2022, 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 $ 29 million and $ 28 million of accrued interest on available-for-sale securities as of December 31, 2023 and September 30, 2023, respectively, which was included in “ Other receivables, net ” on our Condensed Consolidated Statements of Financial Condition.

See Note 6 for more information regarding available-for-sale securities pledged with the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank of Atlanta (“FRB”).

2 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table details the contractual maturities, amortized costs, carrying values and current yields for our available-for-sale securities.

The following table details the contractual maturities, amortized costs, fair values and current yields for our available-for-sale securities.

Weighted-average yields are calculated on a taxable-equivalent basis based on estimated annual income divided by the average amortized cost of these securities.

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.

The weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 4.30 years as of June 30, 2023.

June 30, 2023

As a result, the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 4.0 years as of December 31, 2023.

December 31, 2023

$ in millions Within one year After one but

4 unchanged sentences

$ 1 $ 112 $ 2,033 $ 2,519 $ 4,665

Carrying value

$ — $ 122 $ 2,011 $ 2,372 $ 4,505

Fair value $ 1 $ 108 $ 1,865 $ 2,242 $ 4,216

Weighted-average yield

3 unchanged sentences

$ 18 $ 933 $ 457 $ 49 $ 1,457

Carrying value

$ — $ 824 $ 406 $ 42 $ 1,272

Fair value $ 18 $ 856 $ 380 $ 41 $ 1,295

Weighted-average yield

2 unchanged sentences

$ — $ 7 $ 39 $ 1,361 $ 1,407

Carrying value

$ — $ 8 $ 40 $ 1,204 $ 1,252

Fair value $ — $ 7 $ 35 $ 1,152 $ 1,194

Weighted-average yield

3 unchanged sentences

$ 79 $ 525 $ 80 $ 10 $ 694

Carrying value

$ 59 $ 539 $ 74 $ 10 $ 682

Fair value $ 79 $ 513 $ 76 $ 9 $ 677

Weighted-average yield

3 unchanged sentences

$ — $ — $ — $ 550 $ 550

Carrying value

$ — $ — $ — $ 465 $ 465

Fair value $ — $ — $ — $ 514 $ 514

Weighted-average yield

2 unchanged sentences

$ 821 $ 340 $ — $ — $ 1,161

Carrying value

$ 408 $ 830 $ — $ — $ 1,238

Fair value $ 811 $ 338 $ — $ — $ 1,149

Weighted-average yield

3 unchanged sentences

$ 31 $ 86 $ 23 $ — $ 140

Carrying value

$ 25 $ 84 $ 25 $ — $ 134

Fair value $ 30 $ 84 $ 21 $ — $ 135

Weighted-average yield

2 unchanged sentences

$ — $ 5 $ 5 $ 8 $ 18

Carrying value

$ — $ 5 $ 5 $ 8 $ 18

Fair value $ — $ 5 $ 4 $ 9 $ 18

Weighted-average yield

3 unchanged sentences

$ 950 $ 2,008 $ 2,637 $ 4,497 $ 10,092

Carrying value

$ 492 $ 2,412 $ 2,561 $ 4,101 $ 9,566

Fair value $ 939 $ 1,911 $ 2,381 $ 3,967 $ 9,198

Weighted-average yield

5 unchanged sentences

Less than 12 months 12 months or more Total

$ in millions Estimated

fair value Unrealized

losses Estimated

fair value Unrealized

losses Estimated

fair value Unrealized

June 30, 2023

$ in millions Fair value Unrealized

losses Fair value Unrealized

December 31, 2023

Agency residential MBS

21 unchanged sentences

$ 373 $ ( 5 ) $ 8,617 $ ( 1,247 ) $ 8,990 $ ( 1,252 )

At June 30, 2023, of the 1,079 available-for-sale securities in an unrealized loss position, 144 were in a continuous unrealized loss position for less than 12 months and 935 securities were in a continuous unrealized loss position for greater than 12 months.

At June 30, 2023, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of $ 4.91 billion and $ 2.95 billion, respectively, and fair values of $ 4.31 billion and $ 2.57 billion, respectively.

During the three and nine months ended June 30, 2023, there were no sales of available-for-sale securities.

During the three and nine months ended June 30, 2022, sales of available-for-sale securities were insignificant.

At December 31, 2023, of the 1,066 available-for-sale securities in an unrealized loss position, 36 were in a continuous unrealized loss position for less than 12 months and 1,030 securities were in a continuous unrealized loss position for greater than 12 months.

At December 31, 2023, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of $ 4.60 billion and $ 2.77 billion, respectively, and fair values of $ 4.11 billion and $ 2.45 billion, respectively.

During the three months ended December 31, 2023 and 2022, there were no sales of available-for-sale securities.

RAYMOND JAMES FINANCIAL, INC.

7 unchanged sentences

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.

June 30, 2023 September 30, 2022

December 31, 2023 September 30, 2023

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

Derivatives not designated as hedging instruments

Interest rate - other (1)

$ 414 $ 469 $ 17,811 $ 462 $ 535 $ 14,647

Interest rate - matched book (2)

Interest rate (1)

$ 377 $ 409 $ 17,861 $ 509 $ 576 $ 18,270

3 unchanged sentences

Derivatives designated as hedging instruments

Interest rate - other (3)

Interest rate

6 — 1,225 8 — 1,200

17 unchanged sentences

$ 114 $ 310 $ 134 $ 490

(1) Relates to interest rate derivatives entered into as part of our fixed income business operations, including to-be-announced security contracts that are accounted for as derivatives, as well as our banking operations.

(2) Although the matched book derivative arrangements did not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary included terms that were similar to a master netting agreement.

As a result, we presented the matched book amounts as of September 30, 2022 net in the preceding table.

As of June 30, 2023, we had exited such matched book derivative agreements.

(3) During the nine months ended June 30, 2023, we entered into an interest rate swap to manage our risk of increases in interest rates associated with certain money market and savings accounts by converting the balances subject to variable interest rates to a fixed interest rate.

Such interest rate swap has been designated and accounted for as a cash flow hedge.

Refer to Note 13 of this Form 10-Q for information regarding these bank deposits.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table details the gains/(losses) included in accumulated other comprehensive income/(loss) (“AOCI”), net of income taxes, on derivatives designated as hedging instruments.

These gains/(losses) included any amounts reclassified from AOCI to net income during the period.

(1) Included to-be-announced security contracts that are accounted for as derivatives.

The following table details the losses included in accumulated other comprehensive loss (“AOCI”), net of income taxes, on derivatives designated as hedging instruments.

These losses included any amounts reclassified from AOCI to net income during the period.

See Note 16 for additional information.

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

Three months ended December 31,

$ in millions 2023 2022

1 unchanged sentence

Foreign exchange (net investment hedges) ( 22 ) ( 14 )

Total gains/(losses) included in AOCI, net of taxes $ ( 4 ) $ 34 $ ( 34 ) $ 62

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, 2023 and 2022.

Total losses included in AOCI, net of taxes

$ ( 43 ) $ ( 16 )

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three months ended December 31, 2023 and 2022.

We expect to reclassify $ 27 million of interest expense out of AOCI and into earnings within the next 12 months.

The maximum length of time over which forecasted transactions are or will be hedged is four years .

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

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.

These amounts do not include any offsetting gains/(losses) on the related hedged item.

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

$ in millions Three months ended December 31,

Location of gain/(loss) 2023 2022

7 unchanged sentences

We may require initial margin or collateral from counterparties, generally in the form of cash or 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.

We also enter into derivatives with clients to which Raymond James Bank and TriState Capital Bank have provided loans.

We also enter into derivatives with clients, typically interest rate derivatives, to which either of our bank subsidiaries have provided loans.

Such derivatives are generally collateralized by marketable securities or other assets of the client.

6 unchanged sentences

If our debt were to fall below investment-grade or we were to default on certain of our outstanding debt, the counterparties to the derivative instruments could terminate the derivative and request immediate payment, or demand immediate and ongoing overnight collateralization on our derivative instruments in liability positions.

The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that were in a liability position was $ 3 million as of June 30, 2023 and $ 8 million as of September 30, 2022.

The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that were in a liability position was $ 6 million as of December 31, 2023 and $ 3 million as of September 30, 2023.

RAYMOND JAMES FINANCIAL, INC.

11 unchanged sentences

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

June 30, 2023

December 31, 2023

Gross amounts of recognized assets/liabilities $ 194 $ 260 $ 454 $ 169 $ 347 $ 516

16 unchanged sentences

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

June 30, 2023

December 31, 2023

Repurchase agreements:

2 unchanged sentences

Total repurchase agreements 169 — — — 169

110 — — — 110

Securities loaned:

15 unchanged sentences

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 June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

Collateral we received that was available to be delivered or repledged $ 3,230 $ 3,267

4 unchanged sentences

Encumbered assets

We pledge certain of our assets to collateralize repurchase agreements or other secured borrowings, maintain lines of credit, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments.

We pledge certain of our assets, primarily trading assets, to collateralize repurchase agreements or other secured borrowings, maintain lines of credit, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments.

We pledge certain of our bank loans and available-for-sale securities with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed.

We also pledge certain loans and available-for-sale securities with the FRB to be eligible to participate in the Federal Reserve’s discount window program and to participate in certain deposit programs.

During the nine months ended June 30, 2023, Raymond James Bank increased its borrowing capacity with the FHLB through the pledge of additional available-for-sale securities.

The FHLB does not have the ability to sell or repledge such securities until they are borrowed against.

1 unchanged sentence

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

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

Had the right to deliver or repledge $ 1,046 $ 1,091

Did not have the right to deliver or repledge $ 64 $ 63

Bank loans, net pledged with the:

FHLB $ 9,267 $ 8,009

Total bank loans, net pledged with the FHLB and FRB $ 9,987 $ 8,800

Assets pledged with the FHLB and FRB:

Available-for-sale securities $ 3,947 $ 3,897

Bank loans 10,396 10,166

Total assets pledged with the FHLB and FRB $ 14,343 $ 14,063

RAYMOND JAMES FINANCIAL, INC.

11 unchanged sentences

The following table presents the balances for held for investment loans by portfolio segment and held for sale loans.

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

SBL $ 14,647 $ 14,606

12 unchanged sentences

Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 212 $ 200

(1) Bank loans, net as of June 30, 2023 and September 30, 2022 are presented net of $ 68 million and $ 112 million, respectively, of net unamortized discount, unearned income, and deferred loan fees and costs.

The net unamortized discount primarily arose from the acquisition date fair value purchase discount on bank loans acquired in the TriState Capital acquisition.

See Note 3 of our 2022 Form 10-K for further information.

See Note 6 for more information regarding bank loans, net pledged with the FHLB and FRB and Note 14 for more information regarding borrowings from the FHLB.

(1) Bank loans, net as of December 31, 2023 and September 30, 2023 are presented net of $ 37 million and $ 52 million, respectively, of net unamortized discount, unearned income, and deferred loan fees and costs.

The net unamortized discount primarily arose from the acquisition date fair value purchase discount on bank loans acquired in the TriState Capital Holdings, Inc.

See Note 3 of our 2023 Form 10-K for additional information.

See Note 6 for additional information regarding bank loans pledged with the FHLB and FRB and Note 13 for additional information regarding borrowings from the FHLB.

Held for sale loans

We originated or purchased $ 699 million and $ 2.13 billion of loans held for sale during the three and nine months ended June 30, 2023, respectively, and, exclusive of the loans acquired on June 1, 2022 in our acquisition of TriState Capital, we originated or purchased $ 683 million and $ 2.65 billion of loans held for sale during the three and nine months ended June 30, 2022, respectively.

We originated or purchased $ 441 million and $ 802 million of loans held for sale during the three months ended December 31, 2023 and 2022, respectively.

The majority of these loans were purchases of the guaranteed portions of Small Business Administration (“SBA”) loans that were initially classified as loans held for sale upon purchase and subsequently transferred to trading instruments once they had been securitized into pools.

Proceeds from the sales of these loans held for sale and not securitized amounted to $ 221 million and $ 574 million during the three and nine months ended June 30, 2023, respectively, and $ 345 million and $ 1.02 billion during the three and nine months ended June 30, 2022, respectively.

Net gains resulting from such sales were insignificant for each of the three and nine months ended June 30, 2023 and 2022.

Proceeds from the sales of these loans held for sale and not securitized amounted to $ 102 million and $ 198 million during the three months ended December 31, 2023 and 2022, respectively.

Net gains resulting from such sales were insignificant for each of the three months ended December 31, 2023 and 2022.

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

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

Three months ended June 30, 2023

Purchases $ 3 $ — $ — $ 94 $ 97

Sales $ 441 $ — $ — $ — $ 441

Nine months ended June 30, 2023

Purchases $ 360 $ 39 $ 24 $ 394 $ 817

Sales $ 588 $ — $ — $ — $ 588

Three months ended June 30, 2022

Three months ended December 31, 2023

Purchases $ 206 $ — $ — $ 45 $ 251

Sales $ 119 $ — $ — $ — $ 119

Nine months ended June 30, 2022

Three months ended December 31, 2022

Purchases $ 163 $ 39 $ 24 $ 190 $ 416

2 unchanged sentences

As more fully described in Note 2 of our 2023 Form 10-K, corporate loan sales generally occur as part of our credit management activities.

Aging analysis of loans held for investment

Past due, nonaccrual, and modified loans

The following table presents information on delinquency status of our loans held for investment.

$ 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

June 30, 2023

December 31, 2023

SBL $ 7 $ — $ 7 $ — $ — $ 14,640 $ 14,647

13 unchanged sentences

Total loans held for investment $ 11 $ — $ 11 $ 104 $ 24 $ 43,965 $ 44,104

The preceding table includes $ 118 million and $ 63 million at June 30, 2023 and September 30, 2022, respectively, of nonaccrual loans which were current pursuant to their contractual terms.

The table also includes troubled debt restructurings of $ 30 million, $ 7 million, and $ 10 million for C&I loans, CRE loans, and residential first mortgage loans, respectively, at June 30, 2023, and $ 11 million, $ 9 million, and $ 10 million for C&I loans, CRE loans and residential first mortgage loans, respectively, at September 30, 2022.

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both June 30, 2023 and September 30, 2022.

The preceding table includes $ 87 million and $ 96 million at December 31, 2023 and September 30, 2023, respectively, of nonaccrual loans which were current pursuant to their contractual terms.

In the normal course of business, we may modify the original terms of a loan agreement.

In certain circumstances, we may agree to modify the original terms of a loan agreement to a borrower experiencing financial difficulty, which may include a borrower in default, financial distress, bankruptcy or other circumstances.

Loan modifications to borrowers experiencing financial difficulty typically involve principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (i.e., payment deferral greater than six months), or a term extension, or any combination thereof.

Modified loans to borrowers experiencing financial difficulty are subject to our nonaccrual policies.

Loans to borrowers experiencing financial difficulty which were modified during the three months ended December 31, 2023 were not significant.

Prior to September 30, 2023, loan modifications to borrowers experiencing financial difficulty, to the extent significant, were considered TDRs.

On October 1, 2023, we adopted ASU 2022-02, which eliminated the recognition and measurement guidance for TDRs.

See Note 2 for additional information about this guidance.

As of September 30, 2023, TDRs were $ 21 million, $ 3 million, and $ 10 million for C&I loans, CRE loans and residential first mortgage loans, respectively.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both December 31, 2023 and September 30, 2023.

Collateral-dependent loans

1 unchanged sentence

Collateral-dependent loans are recorded based upon the fair value of the collateral less the estimated selling costs.

The following table presents the amortized cost of our collateral-dependent loans and the nature of the collateral.

Loan type ($ in millions)

Nature of collateral June 30, 2023 September 30, 2022

Nature of collateral December 31, 2023 September 30, 2023

C&I loans Commercial real estate and other business assets $ 9 $ 11

CRE loans Office, healthcare, industrial, and retail real estate $ 42 $ 21

CRE loans Office, multi-family residential, healthcare, and industrial real estate $ 146 $ 47

Residential mortgage loans Single family homes $ 4 $ 5

The recorded investments in residential mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process were $ 4 million and $ 5 million as of June 30, 2023 and September 30, 2022, respectively.

CRE collateral dependent loans as of December 31, 2023 included two loans that were placed on nonaccrual status with an associated allowance during the three months ended December 31, 2023.

The recorded investments in residential mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process were $ 3 million and $ 4 million as of December 31, 2023 and September 30, 2023, respectively.

Credit quality indicators

16 unchanged sentences

Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans.

June 30, 2023

As of and for the three months ended December 31, 2023

Loans by origination fiscal year

7 unchanged sentences

Total SBL $ 50 $ 47 $ 19 $ 82 $ 36 $ 74 $ 14,339 $ 14,647

Gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Pass $ 138 $ 732 $ 1,206 $ 1,067 $ 877 $ 3,457 $ 2,784 $ 10,261

3 unchanged sentences

Total C&I loans $ 138 $ 732 $ 1,211 $ 1,096 $ 1,007 $ 3,516 $ 2,803 $ 10,503

Gross charge-offs

$ — $ — $ — $ 1 $ — $ 5 $ — $ 6

Pass $ 131 $ 1,182 $ 2,317 $ 1,107 $ 739 $ 1,411 $ 255 $ 7,142

3 unchanged sentences

Total CRE loans $ 131 $ 1,188 $ 2,317 $ 1,112 $ 785 $ 1,543 $ 255 $ 7,331

Gross charge offs

$ — $ — $ — $ — $ — $ 2 $ — $ 2

Pass $ 51 $ 236 $ 184 $ 232 $ 103 $ 311 $ 580 $ 1,697

3 unchanged sentences

Total REIT loans $ 51 $ 236 $ 184 $ 232 $ 103 $ 311 $ 580 $ 1,697

Gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Residential mortgage loans

4 unchanged sentences

Total residential mortgage loans $ 323 $ 1,747 $ 2,861 $ 1,588 $ 903 $ 1,406 $ 33 $ 8,861

Gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Tax-exempt loans

4 unchanged sentences

Total tax-exempt loans $ — $ 57 $ 270 $ 160 $ 54 $ 870 $ — $ 1,411

(1) These balances relate to loans which were collateralized by private securities or securities with a limited trading market as of June 30, 2023.

Gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

(1) As of December 31, 2023, these balances relate to loans which were collateralized by private securities or other financial instruments with a limited trading market.

RAYMOND JAMES FINANCIAL, INC.

7 unchanged sentences

Substandard (1)

— — — — — — 24 24

Doubtful — — — — — — — —

3 unchanged sentences

Substandard — — — 62 17 65 17 161

Doubtful — — — — 5 — — 5

— — — — — 3 — 3

Total C&I loans $ 672 $ 1,153 $ 1,120 $ 1,096 $ 1,037 $ 2,743 $ 2,585 $ 10,406

21 unchanged sentences

Total tax-exempt loans $ 147 $ 279 $ 161 $ 54 $ 97 $ 803 $ — $ 1,541

(1) As of September 30, 2023, these balances relate to loans which were collateralized by private securities or other financial instruments with a limited trading market.

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan.

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

June 30, 2023

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

December 31, 2023

Loans by origination fiscal year

27 unchanged sentences

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

Three months ended June 30, 2023

Balance at beginning of period

$ 5 $ 219 $ 100 $ 15 $ 74 $ 2 $ 415

Provision/(benefit) for credit losses — ( 8 ) 55 1 6 — 54

Net (charge-offs)/recoveries:

Charge-offs — ( 6 ) ( 9 ) — — — ( 15 )

Recoveries — — — — — — —

Net (charge-offs)/recoveries

— ( 6 ) ( 9 ) — — — ( 15 )

Foreign exchange translation adjustment

— 1 1 — — — 2

Balance at end of period

$ 5 $ 206 $ 147 $ 16 $ 80 $ 2 $ 456

ACL by loan portfolio segment as a % of total ACL 1.1 % 45.3 % 32.2 % 3.5 % 17.5 % 0.4 % 100.0 %

Nine months ended June 30, 2023

Three months ended December 31, 2023

Balance at beginning of period

11 unchanged sentences

ACL by loan portfolio segment as a % of total ACL 1.5 % 44.1 % 36.3 % 3.5 % 14.2 % 0.4 % 100.0 %

Three months ended June 30, 2022

Balance at beginning of period

$ 3 $ 195 $ 71 $ 25 $ 32 $ 2 $ 328

Initial allowance on acquired purchased credit deteriorated (“PCD”) loans — 1 2 — — — 3

Provision/(benefit) for credit losses:

Initial provision for credit losses on non-PCD loans acquired with TriState Capital Bank 2 5 19 — — — 26

Provision/(benefit) for credit losses ( 1 ) 17 — ( 2 ) 16 — 30

Total provision/(benefit) for credit losses 1 22 19 ( 2 ) 16 — 56

Net (charge-offs)/recoveries:

Charge-offs — ( 11 ) ( 4 ) — — — ( 15 )

Recoveries — — 5 — — — 5

Net (charge-offs)/recoveries — ( 11 ) 1 — — — ( 10 )

Foreign exchange translation adjustment

— — — — — — —

Balance at end of period

$ 4 $ 207 $ 93 $ 23 $ 48 $ 2 $ 377

ACL by loan portfolio segment as a % of total ACL 1.1 % 54.9 % 24.7 % 6.1 % 12.7 % 0.5 % 100.0 %

Nine months ended June 30, 2022

Three months ended December 31, 2022

Balance at beginning of period

$ 3 $ 226 $ 87 $ 21 $ 57 $ 2 $ 396

Initial allowance on acquired PCD loans — 1 2 — — — 3

Provision/(benefit) for credit losses 1 — 2 ( 6 ) 17 — 14

Initial provision for credit losses on non-PCD loans acquired with TriState Capital Bank 2 5 19 — — — 26

Provision/(benefit) for credit losses ( 2 ) 24 5 1 12 — 40

Total provision/(benefit) for credit losses — 29 24 1 12 — 66

Net (charge-offs)/recoveries:

2 unchanged sentences

Net (charge-offs)/recoveries — ( 4 ) 2 — — — ( 2 )

— ( 14 ) 1 — 1 — ( 12 )

Foreign exchange translation adjustment

3 unchanged sentences

ACL by loan portfolio segment as a % of total ACL 1.0 % 54.4 % 22.3 % 3.7 % 18.1 % 0.5 % 100.0 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The allowance for credit losses on held for investment bank loans increased $ 41 million and $ 60 million during the three and nine months ended June 30, 2023, respectively, primarily resulting from provisions for credit losses of $ 54 million and $ 96 million, respectively, partially offset by net charge-offs of certain loans during the period.

The provision for credit losses for the three months ended June 30, 2023 largely reflected the impacts of a weaker economic outlook for the CRE portfolio as reflected in Moody’s CRE Price Index utilized in our Current Expected Credit Losses (“CECL”) model and to a lesser extent loan downgrades.

The provision for credit losses for the nine months ended June 30, 2023 primarily reflected the impacts of a weakened macroeconomic outlook for certain loan portfolios, including the aforementioned impact of a weaker economic outlook for the CRE portfolio as reflected in Moody’s CRE Price Index utilized in our CECL model as well as loan downgrades during the period.

These increases were partially offset by the impact of loan repayments and sales, which had a larger impact than provisions on new loans during the period.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $ 28 million, $ 21 million, and $ 19 million at June 30, 2023, March 31, 2023 and September 30, 2022, respectively.

The increase in the allowance for credit losses on unfunded lending commitments for the three and nine months ended June 30, 2023 was primarily due to the aforementioned impact of a weaker economic outlook for the CRE portfolio as reflected in Moody’s CRE Price Index utilized in our CECL model.

The allowance for credit losses on held for investment bank loans increased $ 5 million during the three months ended December 31, 2023 primarily resulting from provisions for credit losses of $ 12 million, partially offset by net charge-offs of certain loans during the period.

The provision for credit losses for the three months ended December 31, 2023 primarily reflected the impacts of specific reserves in our C&I and CRE loan portfolios, loan downgrades, and charge-offs, partially offset by the favorable impact of loan repayments and sales, which had a larger impact on the current quarter expense than provisions on new 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 $ 20 million and $ 22 million at December 31, 2023 and September 30, 2023, respectively.

NOTE 8 – LOANS TO FINANCIAL ADVISORS, NET

2 unchanged sentences

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

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

Affiliated with the firm as of period-end (1)

21 unchanged sentences

$ in millions Aggregate assets Aggregate liabilities

June 30, 2023

December 31, 2023

Restricted Stock Trust Fund

5 unchanged sentences

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

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash $ 14 $ 5

6 unchanged sentences

As discussed in Note 2 of our 2023 Form 10-K, we have concluded that for certain VIEs we are not the primary beneficiary and therefore do not consolidate these VIEs.

Such VIEs include certain LIHTC funds, our interests in certain limited partnerships which are part of our private equity portfolio (“Private Equity Interests”), and other limited partnerships.

Such VIEs primarily include certain LIHTC funds, our interests in certain limited partnerships which are part of our private equity portfolio (“Private Equity Interests”), and other limited partnerships.

Our risk of loss for these VIEs is limited to our investments in, advances to, and/or receivables due from these VIEs.

4 unchanged sentences

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.

June 30, 2023 September 30, 2022

December 31, 2023 September 30, 2023

$ in millions Aggregate

8 unchanged sentences

Total $ 11,747 $ 3,967 $ 151 $ 11,243 $ 3,703 $ 217

NOTE 10 - GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET

Our goodwill and identifiable intangible assets result from various acquisitions.

See Notes 2 and 11 of our 2022 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 intangible assets as of our January 1, 2023 evaluation date, evaluating balances as of December 31, 2022.

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

Our qualitative assessments considered macroeconomic indicators and industry and market considerations, such as trends in equity and fixed income markets, gross domestic product, labor markets, interest rates, and housing markets.

We also considered regulatory changes, as well as company-specific factors such as market capitalization, reporting unit specific results, and changes in key personnel and strategy.

Changes in these indicators, and our ability to respond to such changes, may trigger the need for impairment testing at a point other than our annual assessment date.

Based upon the outcome of our qualitative assessments, no impairment was identified.

No events have occurred since such assessments that would cause us to update this impairment testing.

NOTE 10 - OTHER ASSETS

The following table details the components of other assets.

See Note 2 of our 2022 Form 10-K for a discussion of the accounting polices related to certain of these components.

$ in millions June 30, 2023 September 30, 2022

The following table details the components of other assets as of the dates indicated.

See Note 2 of our 2023 Form 10-K for a discussion of our accounting polices related to certain of these components.

$ in millions December 31, 2023 September 30, 2023

Investments in company-owned life insurance policies $ 1,228 $ 1,110

6 unchanged sentences

Total other assets $ 3,060 $ 2,793

See Note 13 of our 2022 Form 10-K for further information regarding our property and equipment and Note 12 of this Form 10-Q and Note 14 of our 2022 Form 10-K for further information regarding our leases.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

See Note 13 of our 2023 Form 10-K for additional information regarding our property and equipment and Note 11 of this Form 10-Q and Note 14 of our 2023 Form 10-K for additional information regarding our leases.

NOTE 11 – LEASES

1 unchanged sentence

See Notes 2 and 14 of our 2023 Form 10-K for additional information related to our leases, including a discussion of our accounting policies.

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

ROU assets (included in “Other assets”)

Lease liabilities (included in “Other payables”)

Lease liabilities as of June 30, 2023 excluded $ 46 million of minimum lease payments related to lease arrangements that were legally binding but had not yet commenced.

These leases are estimated to commence between dates later in fiscal year 2023 through fiscal year 2025 with lease terms ranging from four to 10 years.

Lease liabilities as of December 31, 2023 excluded $ 42 million of minimum lease payments related to lease arrangements that were legally binding but had not yet commenced.

These leases are estimated to commence between dates later in fiscal year 2024 through fiscal year 2025 with lease terms ranging from four to ten years .

Lease expense

The following table details the components of lease expense, which is included in “Occupancy and equipment” expense on our Condensed Consolidated Statements of Income and Comprehensive Income.

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

Three months ended December 31,

$ in millions 2023 2022

2 unchanged sentences

Variable lease costs in the preceding table include payments required under lease arrangements for common area maintenance charges and other variable costs that are not reflected in the measurement of ROU assets and lease liabilities.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 12 – BANK DEPOSITS

Bank deposits include money market and savings accounts, interest-bearing demand deposits, which include Negotiable Order of Withdrawal accounts, certificates of deposit, and non-interest-bearing demand deposits.

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

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

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

June 30, 2023 September 30, 2022

December 31, 2023 September 30, 2023

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

4 unchanged sentences

Total bank deposits $ 55,393 3.25 % $ 54,199 3.06 %

Money market and savings accounts in the preceding table included $ 27.92 billion and $ 38.71 billion as of June 30, 2023 and September 30, 2022, respectively, of cash balances which were swept to our Bank segment from the client investment accounts maintained at Raymond James & Associates, Inc.

Money market and savings accounts in the preceding table included $ 23.91 billion and $ 25.36 billion as of December 31, 2023 and September 30, 2023, respectively, of cash balances which were swept to our Bank segment from the client investment accounts maintained at Raymond James & Associates, Inc.

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

Money market and savings accounts also included direct accounts held by TriState Capital Bank on behalf of third-party clients.

Interest-bearing demand deposits in the preceding table included $ 11.23 billion of deposits as of June 30, 2023 associated with our Enhanced Savings Program, in which Private Client Group clients deposit cash in a high-yield Raymond James Bank account.

The following table details the estimated amount of total bank deposits, excluding affiliated deposits, that are FDIC-insured, as well as the estimated amount that exceeded the FDIC insurance limit at each respective period.

$ in millions June 30, 2023 September 30, 2022

Total bank deposits in the preceding table included $ 14.48 billion and $ 13.59 billion of deposits as of December 31, 2023 and September 30, 2023, respectively, associated with our Enhanced Savings Program (“ESP”), in which PCG clients deposit cash in a high-yield Raymond James Bank account.

Substantially all of the ESP balances are reflected in interest-bearing demand deposits in the preceding table.

The following table details the amount of total bank deposits (which excludes affiliate deposits) that are FDIC-insured, as well as the amount that exceeded the FDIC insurance limit at each respective period.

$ in millions December 31, 2023 September 30, 2023

FDIC-insured bank deposits $ 49,152 $ 48,344

2 unchanged sentences

FDIC-insured bank deposits as a % of total bank deposits 89 % 89 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table sets forth the estimated amount of certificates of deposit, excluding affiliated deposits, that exceeded the FDIC insurance limit by time remaining until maturity as of June 30, 2023.

$ in millions June 30, 2023

(1) Bank deposits that exceeded the FDIC insurance limit were calculated in accordance with applicable regulatory reporting requirements.

(2) Excluded affiliate deposits exceeding the FDIC insurance limit of $ 924 million and $ 764 million as of December 31, 2023 and September 30, 2023, respectively.

The following table sets forth the amount of certificates of deposit that exceeded the FDIC insurance limit, categorized by the time remaining until maturity, as of December 31, 2023.

$ in millions December 31, 2023

Three months or less

2 unchanged sentences

Over twelve months 12

Total estimated certificates of deposit that exceeded the FDIC insurance limit $ 108

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

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

Total certificates of deposit that exceeded the FDIC insurance limit (1)

(1) Total certificates of deposit that exceeded the FDIC insurance limit were calculated in accordance with applicable regulatory reporting requirements.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

Three months ended December 31,

$ in millions 2023 2022

4 unchanged sentences

We use an interest rate swap to manage the risk of increases in interest rates associated with certain money market and savings accounts by converting the balances subject to variable interest rates to a fixed interest rate.

Refer to Note 5 of this Form 10-Q for information regarding this interest rate swap, which has been designated and accounted for as a cash flow hedge.

See Note 2 of our 2023 Form 10-K for information regarding this interest rate swap, which has been designated and accounted for as a cash flow hedge.

NOTE 13 – OTHER BORROWINGS

The following table details the components of our other borrowings, which are primarily comprised of short-term and long-term FHLB advances and subordinated notes.

June 30, 2023 September 30, 2022

December 31, 2023 September 30, 2023

$ in millions Weighted-average interest rate Maturity date Balance Weighted-average interest rate Maturity date Balance

1 unchanged sentence

Floating rate - term

5.36 % December 2023 - March 2025 $ 850 3.32 % December 2023 $ 850

Floating rate - overnight (1)

— % Overnight — 3.11 % Overnight 140

Fixed rate 5.59 % September 2023 150 3.45 % December 2022 200

5.71 % March 2025 - June 2025 $ 650 5.62 % December 2023 - March 2025 $ 850

Fixed rate 4.76 % March 2024 - December 2028 350 5.70 % December 2023 150

Total FHLB advances 1,000 1,000

2 unchanged sentences

Total other borrowings $ 1,099 $ 1,100

(1) Interest rates on these advances reset daily.

We use interest rate swaps to manage the risk of increases in interest rates associated with the majority our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate.

Refer to Note 2 of our 2022 Form 10-K and Note 5 of this Form 10-Q for information regarding these interest rate swaps, which have been designated and accounted for as cash flow hedges.

Refer to Note 6 for more information regarding bank loans, net and available-for-sale securities pledged with the FHLB as security for our FHLB borrowings.

See Note 2 of our 2023 Form 10-K and Note 5 of this Form 10-Q for information regarding these interest rate swaps, which have been designated and accounted for as cash flow hedges.

See Note 6 for additional information regarding bank loans and available-for-sale securities pledged with the FHLB as security for our FHLB borrowings.

Subordinated notes

Our subordinated notes incur interest at a fixed rate of 5.75 % until May 2025 and thereafter at a variable interest rate equal to 3-month CME Term SOFR plus a spread adjustment of 5.62 % per annum.

Refer to Note 16 of our 2022 Form 10-K for additional information regarding these borrowings.

As of December 31, 2023, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $ 98 million.

Our subordinated notes incur interest at a fixed rate of 5.75 % until May 2025 and thereafter at a variable interest rate equal to 3-month CME Term Secured Overnight Financing Rate (“SOFR”) plus a spread adjustment of 5.62 % per annum.

We may redeem these subordinated notes beginning in August 2025 at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to the redemption date.

Credit Facility

RJF and RJ&A are parties to a revolving credit facility agreement (the “Credit Facility”), a committed unsecured line of credit under which either RJ&A or RJF have the ability to borrow.

The Credit Facility has a term through April 2028 and provides for maximum borrowings of up to $ 750 million.

The interest rates on borrowings under the Credit Facility are variable and based on SOFR, as adjusted for RJF’s credit rating.

There were no borrowings outstanding on the Credit Facility as of December 31, 2023 or September 30, 2023.

There is a facility fee associated with the Credit Facility, which also varies with RJF’s credit rating (the “Variable Rate Facility Fee”).

Based upon RJF’s credit rating as of December 31, 2023, the Variable Rate Facility Fee, which is applied to the committed amount, was 0.125 % per annum.

For further information on our other borrowing arrangements refer to Note 16 of our 2023 Form 10-K.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

Credit Facility

In April 2023, we amended and extended our revolving credit facility agreement (the “Credit Facility”), a committed unsecured line of credit under which either RJ&A or RJF have the ability to borrow.

As a result of the extension, the Credit Facility reflects a term through April 2028 and provides for maximum borrowings of up to $ 750 million.

The interest rates on borrowings under the Credit Facility are variable and based on the Secured Overnight Financing Rate (“SOFR”), as adjusted for RJF’s credit rating.

There were no borrowings outstanding on the Credit Facility as of June 30, 2023 or September 30, 2022.

There is a facility fee associated with the Credit Facility, which also varies with RJF’s credit rating.

Based upon RJF’s credit rating as of June 30, 2023, the variable rate facility fee, which is applied to the committed amount, was 0.125 % per annum.

For further information on our other borrowing arrangements refer to Note 16 of our 2022 Form 10-K.

NOTE 14 – INCOME TAXES

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Effective tax rate

Our effective income tax rate of 23.0 % for the nine months ended June 30, 2023 was lower than the 25.4 % effective tax rate for our fiscal year 2022.

The decrease in the effective income tax rate was primarily due to nontaxable valuation gains associated with our company-owned life insurance policies that were recognized during the current period compared to fiscal year 2022 which had nondeductible losses.

Our effective income tax rate of 21.0 % for the three months ended December 31, 2023 was lower than the 23.7 % effective tax rate for our fiscal year 2023.

The decrease in the effective income tax rate was primarily due to a larger tax benefit recognized during the current quarter related to share-based compensation that vested during the period, compared to that for the fiscal year 2023.

Additionally, our effective income tax rate for the fiscal year 2023 reflected the adverse impact of nondeductible fines and penalties that did not recur during the current quarter.

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 our uncertain tax position liability balance may decrease within the next 12 months by up to $ 10 million due to expirations of statutes of limitations and the completion of tax 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 $ 6 million due to expiration of statutes of limitations of federal and state tax returns.

NOTE 15 – 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 June 30, 2023, we had one such open underwriting commitment, which was subsequently settled in an open market transaction that had an insignificant impact on our results of operations.

As of December 31, 2023, we had no such open underwriting commitments.

Lending commitments and other credit-related financial instruments

We have 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 client’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 our commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding at our Bank segment.

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

SBL and other consumer lines of credit $ 39,731 $ 38,791

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Unfunded lending commitments

$ 1,087 $ 1,255

Standby letters of credit

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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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Because many of our 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 the CECL model provides for potential losses related to the unfunded lending commitments.

See Note 2 of our 2022 Form 10-K and Note 7 of this Form 10-Q for further information on this allowance for credit losses related to unfunded lending commitments.

RJ&A enters into margin lending arrangements which allow customers to borrow against the value of qualifying securities.

Margin loans are collateralized by the securities held in the customer’s account at RJ&A.

Collateral levels and established credit terms are monitored daily and we require customers to deposit additional collateral or reduce balances as necessary.

We offer loans to prospective financial advisors for recruiting and retention purposes (see Note 2 of our 2022 Form 10-K and Note 8 of this Form 10-Q for further discussion of our loans to financial advisors).

See Note 2 of our 2023 Form 10-K and Note 7 of this Form 10-Q for additional information regarding this allowance for credit losses related to unfunded lending commitments.

RJ&A enters into margin lending arrangements which allow clients to borrow against the value of qualifying securities.

Margin loans are collateralized by the securities held in the client’s account at RJ&A.

Collateral levels and established credit terms are monitored daily and we require clients to deposit additional collateral or reduce balances as necessary.

We offer loans to prospective financial advisors for recruiting and retention purposes (see Note 2 of our 2023 Form 10-K and Note 8 of this Form 10-Q for additional information regarding our loans to financial advisors).

These offers are contingent upon certain events occurring, including the individuals joining us and meeting certain other conditions outlined in their offer.

We had no such unfunded commitments for loans to financial advisors who have met such conditions as of December 31, 2023.

Investment commitments

We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $ 74 million as of June 30, 2023.

We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $ 63 million as of December 31, 2023.

Other commitments

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

As of June 30, 2023, RJAHI had committed approximately $ 265 million to project partnerships that had not yet been sold to LIHTC funds.

As of December 31, 2023, RJAHI had committed approximately $ 248 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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RJF has provided an indemnity to Lloyd’s of London against any and all losses they may incur associated with the excess SIPC policies.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Legal and regulatory matters contingencies

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In addition, regulatory agencies and self-regulatory organizations institute investigations from time to time, among other things, into industry practices, which can also result in the imposition of such sanctions.

For example, the firm is continuing its cooperation with the SEC in connection with an investigation of the firm’s investment advisory business’ compliance with records preservation requirements relating to business communications sent over electronic messaging channels that have not been approved by the firm.

The SEC is reportedly conducting similar investigations of record preservation practices at other financial institutions.

For example, the firm has cooperated with the SEC in connection with an investigation of the firm’s investment advisory business’ compliance with records preservation requirements relating to business communications sent over electronic messaging channels that have not been approved by the firm.

The SEC is reportedly conducting similar investigations of record preservation practices at other

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

financial institutions.

As of December 31, 2023, we continue to maintain an accrual related to this SEC investigation in our condensed consolidated financial statements in accordance with our contingent liabilities accounting policy.

Refer to Note 2 of our 2023 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies.

We may contest liability and/or the amount of damages, as appropriate, in each pending matter.

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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 June 30, 2023, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $ 100 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 December 31, 2023, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $ 35 million in excess of the aggregate accruals for such matters.

Refer to Note 2 of our 2023 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 16 – SHAREHOLDERS’ EQUITY

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For further details regarding our preferred stock see Note 20 of our 2023 Form 10-K.

$ in millions, except share count June 30, 2023 September 30, 2022

6.75 % Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”):

Shares outstanding — 40,250

Carrying value $ — $ 41

Aggregate liquidation preference $ — $ 40

$ in millions December 31, 2023 September 30, 2023

6.375 % Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (“Series B Preferred Stock”):

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Aggregate liquidation preference $ 81 $ 81

On April 3, 2023, we redeemed all 40,250 outstanding shares of our Series A Preferred Stock with a carrying value of $ 41 million, which triggered the redemption of the related depositary shares (“Series A Depositary Shares”), each representing a 1/40th interest of a share of Series A Preferred Stock, for an aggregate redemption value of $ 40 million.

The following table details dividends declared and dividends paid on our Series A and Series B preferred stock for the three and nine months ended June 30, 2023.

The following table details dividends declared and dividends paid on our 6.75 % Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”) and Series B Preferred Stock for the three months ended December 31, 2023 and 2022.

We redeemed all outstanding shares of our Series A Preferred Stock on April 3, 2023.

Dividends declared Dividends paid

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share amount Total dividends Per preferred

Three months ended June 30, 2023

Series A Preferred Stock (1)

$ — $ — $ 1 $ 16.88

Series B Preferred Stock 1 $ 15.94 1 $ 15.94

Total preferred stock dividends (1)

Nine Months Ended June 30, 2023

Series A Preferred Stock (1)

$ 2 $ 33.76 $ 3 $ 50.64

Series B Preferred Stock 3 $ 47.82 3 $ 47.82

Total preferred stock dividends (1)

Three months ended June 30, 2022

Series A Preferred Stock $ 1 $ 16.88 $ — $ —

Three months ended December 31, 2023

Series B Preferred Stock $ 1 $ 15.94 $ 1 $ 15.94

Total preferred stock dividends $ 2 $ —

Nine months ended June 30, 2022

Three months ended December 31, 2022

Series A Preferred Stock $ 1 $ 16.88 $ 1 $ 16.88

Series B Preferred Stock 1 $ 15.94 1 $ 15.94

Total preferred stock dividends $ 2 $ —

(1) Preferred stock dividends on our Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended June 30, 2023 included dividends declared during the periods, as well as the $ 1 million excess of the carrying value of our Series A Preferred Stock over the redemption value, which was reported as an offset to preferred dividends and increased net income available to common shareholders.

Dividends on Series B Preferred Stock are payable quarterly at a rate of 6.375 % per annum from original issue date up to, but excluding, July 1, 2026, and thereafter at a floating rate equal to 3-month CME Term SOFR plus a spread adjustment of 4.35 % per annum.

Refer to Note 20 of our 2022 Form 10-K for additional information regarding our Series B Preferred Stock.

RAYMOND JAMES FINANCIAL, INC.

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Common equity

Common stock issuance

We issue shares from time to time during the year to satisfy obligations under certain of our share-based compensation programs.

The following table presents the changes in our common shares outstanding for the three months ended December 31, 2023 and 2022.

Three months ended December 31,

Shares in millions

Balance beginning of period

Repurchases of common stock

( 1.4 ) ( 1.3 )

Issuances due to vesting of RSUs and exercise of stock options, net of forfeitures

Balance end of period

We issue shares from time to time during the year to satisfy obligations under certain of our share-based compensation programs, some of which may be reissued out of treasury shares.

See Note 19 of this Form 10-Q and Note 23 of our 2023 Form 10-K for additional information on these programs.

We may also reissue treasury shares for such purposes.

Share repurchases

We repurchase shares of our common stock from time to time for a number of reasons, including to offset dilution from share-based compensation.

In December 2022, our Board of Directors authorized common stock repurchases of up to $ 1.5 billion, which replaced the previous authorization.

Our share repurchases are effected primarily through regular open-market purchases, typically under a SEC Rule 10b-18 plan, the amounts and timing of which are determined primarily by our current and projected capital position, applicable law and regulatory constraints, general market conditions, and the price and trading volumes of our common stock.

During the three months ended June 30, 2023, under the Board of Directors’ common stock repurchase authorization, we repurchased 3.31 million shares of our common stock for $ 300 million at an average price of $ 90.51 per share.

During the nine months ended June 30, 2023, we repurchased 8.35 million shares of our common stock for $ 788 million at an average price of $ 94.30 per share.

As of June 30, 2023, $ 750 million remained available under the Board of Directors’ common stock repurchase authorization.

We incurred $ 5 million of excise tax on share repurchases during the nine months ended June 30, 2023 which is included in “Treasury stock” on the Condensed Consolidated Statements of Changes in Shareholders’ Equity.

We repurchase shares of our common stock from time to time for a number of reasons, including to offset dilution, which could arise from share issuances resulting from share-based compensation programs or acquisitions.

In November 2023, our Board of Directors authorized common stock repurchases of up to $ 1.5 billion, which replaced the previous authorization.

Our share repurchases are effected primarily through regular open-market purchases, typically under a SEC Rule 10b-18 plan, the amounts and timing of which are determined primarily by our current and projected capital position, applicable legal and regulatory constraints, general market conditions and the price and trading volumes of our common stock.

During the three months ended December 31, 2023, we repurchased 1.41 million shares of our common stock for $ 150 million at an average price of $ 106.51 per share.

As of December 31, 2023, $ 1.39 billion remained available under the Board of Directors’ common stock repurchase authorization.

Common stock dividends

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

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

2023 2022 2023 2022

Three months ended December 31,

Dividends per common share - declared $ 0.45 $ 0.42

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Our dividend payout ratio is detailed in the following table for each respective period and is computed by dividing dividends declared per common share by earnings per diluted common share.

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

2023 2022 2023 2022

Three months ended December 31,

Dividend payout ratio

19.4 % 18.3 %

RJF expects to continue paying cash dividends.

We expect to continue paying cash dividends;

however, the payment and rate of dividends on our common stock are subject to several factors including our operating results, financial and regulatory requirements or restrictions, and the availability of funds from our subsidiaries, including our broker-dealer and bank subsidiaries, which may also be subject to restrictions under regulatory capital rules.

The availability of funds from subsidiaries may also be subject to restrictions contained in loan covenants of certain broker-dealer loan agreements and restrictions by bank regulators on dividends to the parent from Raymond James Bank and TriState Capital Bank.

See Note 20 of this Form 10-Q for additional information on our regulatory capital requirements.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

Accumulated other comprehensive income/(loss)

A ccumulated other comprehensive income/(loss)

All of the components of other comprehensive income/(loss) (“OCI”), net of tax, were attributable to RJF.

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

Three months ended June 30, 2023

AOCI as of beginning of period $ 136 $ ( 206 ) $ ( 70 ) $ ( 758 ) $ 30 $ ( 798 )

OCI before reclassifications and taxes ( 22 ) 36 14 ( 102 ) 26 ( 62 )

Amounts reclassified from AOCI, before tax — — — — ( 9 ) ( 9 )

Pre-tax net OCI ( 22 ) 36 14 ( 102 ) 17 ( 71 )

Income tax effect 6 — 6 26 ( 5 ) 27

OCI for the period, net of tax ( 16 ) 36 20 ( 76 ) 12 ( 44 )

AOCI as of end of period $ 120 $ ( 170 ) $ ( 50 ) $ ( 834 ) $ 42 $ ( 842 )

Nine months ended June 30, 2023

AOCI as of beginning of period $ 153 $ ( 276 ) $ ( 123 ) $ ( 902 ) $ 43 $ ( 982 )

OCI before reclassifications and taxes ( 45 ) 107 62 109 21 192

Amounts reclassified from AOCI, before tax — — — — ( 22 ) ( 22 )

Pre-tax net OCI ( 45 ) 107 62 109 ( 1 ) 170

Income tax effect 12 ( 1 ) 11 ( 41 ) — ( 30 )

OCI for the period, net of tax ( 33 ) 106 73 68 ( 1 ) 140

AOCI as of end of period $ 120 $ ( 170 ) $ ( 50 ) $ ( 834 ) $ 42 $ ( 842 )

Three months ended June 30, 2022

Three months ended December 31, 2023

AOCI as of beginning of period $ 143 $ ( 216 ) $ ( 73 ) $ ( 942 ) $ 44 $ ( 971 )

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AOCI as of end of period $ 121 $ ( 165 ) $ ( 44 ) $ ( 672 ) $ 23 $ ( 693 )

Nine months ended June 30, 2022

Three months ended December 31, 2022

AOCI as of beginning of period $ 153 $ ( 276 ) $ ( 123 ) $ ( 902 ) $ 43 $ ( 982 )

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AOCI as of end of period $ 139 $ ( 216 ) $ ( 77 ) $ ( 855 ) $ 41 $ ( 891 )

Reclassifications from AOCI to net income, excluding taxes, for the three and nine months ended June 30, 2023 and 2022 were recorded in “Interest expense” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Reclassifications from AOCI to net income, excluding taxes, for the three months ended December 31, 2023 and 2022 were recorded in “Interest expense” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Our net investment hedges and cash flow hedges relate to derivatives associated with our Bank segment.

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For further information about our significant accounting policies related to revenue recognition see Note 2 of our 2023 Form 10-K.

See Note 26 of our 2022 Form 10-K and Note 23 of this Form 10-Q for additional information on our segment results.

Three months ended June 30, 2023

See Note 26 of our 2023 Form 10-K and Note 22 of this Form 10-Q for additional information on our segments.

Three months ended December 31, 2023

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

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Equities, exchange-traded funds (“ETFs”) and fixed income products

Subtotal securities commissions 324 32 2 — ( 2 ) 356

Principal transactions (1)

89 33 — — ( 1 ) 121

Total brokerage revenues 349 110 2 3 ( 3 ) 461

Account and service fees:

Mutual fund and annuity service fees 103 — — — — 103

RJBDP fees 384 1 — — ( 278 ) 107

Client account and other fees 59 2 5 — ( 12 ) 54

Total account and service fees 546 3 5 — ( 290 ) 264

Investment banking:

Merger & acquisition and advisory — 88 — — — 88

Equity underwriting 9 25 — — 1 35

Debt underwriting — 28 — — — 28

Total investment banking 9 141 — — 1 151

Affordable housing investments business revenues — 21 — — — 21

All other (1)

25 — — 14 ( 3 ) 36

Total other 25 21 — 14 ( 3 ) 57

Total non-interest revenues 2,093 276 224 17 ( 304 ) 2,306

Interest income (1)

114 21 2 826 24 987

Total revenues 2,207 297 226 843 ( 280 ) 3,293

Interest expense ( 25 ) ( 21 ) — ( 329 ) ( 11 ) ( 386 )

Net revenues $ 2,182 $ 276 $ 226 $ 514 $ ( 291 ) $ 2,907

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three months ended June 30, 2022

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

Asset management and related administrative fees $ 1,214 $ — $ 220 $ — $ ( 7 ) $ 1,427

Brokerage revenues:

Securities commissions:

Mutual and other fund products 149 1 2 — ( 1 ) 151

Insurance and annuity products 109 — — — — 109

Equities, ETFs and fixed income products 90 35 — — — 125

Subtotal securities commissions 350 35 2 — ( 4 ) 383

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Notes to Condensed Consolidated Financial Statements (Unaudited)

Nine Months Ended June 30, 2023

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

Asset management and related administrative fees $ 3,319 $ 2 $ 620 $ — $ ( 24 ) $ 3,917

Brokerage revenues:

Securities commissions:

Mutual and other fund products 398 4 4 — ( 2 ) 404

Insurance and annuity products 320 — — — — 320

Equities, ETFs and fixed income products 259 96 — — ( 2 ) 353

Subtotal securities commissions 977 100 4 — ( 4 ) 1,077

Principal transactions (1)

81 274 — 11 ( 2 ) 364

Total brokerage revenues 1,058 374 4 11 ( 6 ) 1,441

Account and service fees:

Mutual fund and annuity service fees 306 — 1 — ( 1 ) 306

RJBDP fees 1,200 3 — — ( 859 ) 344

Client account and other fees 175 5 15 — ( 34 ) 161

Total account and service fees 1,681 8 16 — ( 894 ) 811

Investment banking:

Merger & acquisition and advisory — 277 — — — 277

Equity underwriting 27 69 — — — 96

Debt underwriting — 73 — — — 73

Total investment banking 27 419 — — — 446

Affordable housing investments business revenues — 68 — — — 68

All other (1)

40 1 2 33 ( 11 ) 65

Total other 40 69 2 33 ( 11 ) 133

Total non-interest revenues 6,125 872 642 44 ( 935 ) 6,748

Interest income (1)

340 65 7 2,251 66 2,729

Total revenues 6,465 937 649 2,295 ( 869 ) 9,477

Interest expense ( 76 ) ( 64 ) — ( 733 ) ( 38 ) ( 911 )

Net revenues $ 6,389 $ 873 $ 649 $ 1,562 $ ( 907 ) $ 8,566

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Nine Months Ended June 30, 2022

Three months ended December 31, 2022

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

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

At June 30, 2023 and September 30, 2022, net receivables related to contracts with customers were $ 543 million and $ 511 million, respectively.

At December 31, 2023 and September 30, 2023, net receivables related to contracts with customers were $ 481 million and $ 519 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 June 30, Nine months ended June 30,

Three months ended December 31,

$ in millions 2023 2022

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Bank deposits

$ 312 $ 20 690 $ 31

Trading liabilities — debt securities 11 10

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Total interest expense

$ 386 $ 60 $ 911 $ 135

Net interest income $ 546 $ 586

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NOTE 19 – SHARE-BASED COMPENSATION

We have one share-based compensation plan, the Amended and Restated 2012 Stock Incentive Plan (“the Plan”), for our employees, directors, and independent contractor financial advisors.

On February 23, 2023, our shareholders approved an amendment to the Plan to increase the number of shares available for grant by 18 million.

Following this amendment, the Plan authorizes us to grant 96.4 million shares (including the shares available for grant under six predecessor plans).

As of June 30, 2023, 20.9 million shares remained available for grant under the Plan.

We may utilize treasury shares for grants under the Plan;

though we are also permitted to issue new shares.

We have one share-based compensation plan, the Raymond James Financial, Inc.

Amended and Restated 2012 Stock Incentive Plan (“the Plan”), for our employees, Board of Directors, and independent contractor financial advisors.

We may utilize treasury shares for grants under the Plan, though we are also permitted to issue new shares.

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

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Restricted stock units

During the three and nine months ended June 30, 2023, we granted approximately 47 thousand and 2.1 million RSUs, respectively, with a weighted-average grant-date fair value of $ 90.86 and $ 116.18 , respectively, compared with approximately 222 thousand and 3.1 million RSUs granted during the three and nine months ended June 30, 2022, respectively, with a weighted-average grant-date fair value of $ 97.64 and $ 98.77 , respectively.

For the three and nine months ended June 30, 2023, total share-based compensation amortization related to RSUs was $ 50 million and $ 180 million, respectively, compared with $ 36 million and $ 141 million for the three and nine months ended June 30, 2022, respectively.

As of June 30, 2023, there were $ 385 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the nine months ended June 30, 2023.

These costs are expected to be recognized over a weighted-average period of 2.7 years.

During the three months ended December 31, 2023, we granted approximately 1.7 million RSUs with a weighted-average grant-date fair value of $ 106.68 , compared with approximately 1.9 million RSUs granted during the three months ended December 31, 2022, with a weighted-average grant-date fair value of $ 117.66 .

For the three months ended December 31, 2023, total share-based compensation amortization related to RSUs was $ 87 million, compared with $ 76 million for the three months ended December 31, 2022.

As of December 31, 2023, there were $ 425 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the three months ended December 31, 2023.

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

RAYMOND JAMES FINANCIAL, INC.

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See Note 23 of our 2023 Form 10-K for further discussion of these awards.

For the three and nine months ended June 30, 2023 total share-based compensation amortization related to these RSAs was $ 2 million and $ 7 million, respectively.

As of June 30, 2023, there were $ 14 million of total pre-tax compensation costs not yet recognized for these RSAs.

These costs are expected to be recognized over a weighted-average period of 2.3 years.

For the three months ended December 31, 2023 total share-based compensation amortization related to these RSAs was $ 2 million, compared with $ 3 million for the three months ended December 31, 2022.

As of December 31, 2023, there were $ 10 million of total pre-tax compensation costs not yet recognized for these RSAs.

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

NOTE 20 – REGULATORY CAPITAL REQUIREMENTS

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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 Wall Street Reform and Consumer Protection Act.

The FDIC’s capital rules, which are substantially similar to the Fed’s rules, applied to TriState Capital Bank as of June 30, 2023 and September 30, 2022.

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”).

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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 June 30, 2023, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirement and each entity was categorized as “well-capitalized.”

As of December 31, 2023, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirement and each entity was categorized as “well-capitalized.”

For further discussion of regulatory capital requirements applicable to certain of our businesses and subsidiaries, see Note 24 of our 2023 Form 10-K.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

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$ in millions Amount Ratio Amount Ratio Amount Ratio

RJF as of June 30, 2023:

RJF as of December 31, 2023:

Tier 1 leverage $ 9,646 12.1 % $ 3,185 4.0 % $ 3,981 5.0 %

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Total capital $ 9,934 22.8 % $ 3,484 8.0 % $ 4,355 10.0 %

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

As of June 30, 2023, RJF’s regulatory capital increase compared with September 30, 2022 was driven by an increase in equity due to positive earnings, partially offset by share repurchases and dividends.

RJF’s Tier 1 capital and Total capital ratios increased compared with September 30, 2022 resulting from the increase in regulatory capital and a decrease in risk-weighted assets.

The decrease in risk-weighted assets was primarily driven by a decrease in assets segregated for regulatory purposes, partially offset by an increase in our bank loan portfolio.

RJF’s Tier 1 leverage ratio at June 30, 2023 increased compared to September 30, 2022 due to the increase in regulatory capital and lower average assets, primarily driven by a decrease in assets segregated for regulatory purposes.

As of December 31, 2023, RJF’s regulatory capital increase compared with September 30, 2023 was driven by an increase in equity due to positive earnings, partially offset by share repurchases and dividends.

RJF’s Tier 1 capital and Total capital ratios increased compared with September 30, 2023 resulting from the increase in regulatory capital, partially offset by an increase in risk-weighted assets.

The increase in risk-weighted assets was primarily driven by an increase in our bank loan portfolio and company-owned life insurance policies.

RJF’s Tier 1 leverage ratio at December 31, 2023 increased compared to September 30, 2023 due to the increase in regulatory capital, which was partially offset by higher average assets, primarily driven by an increase in cash and our bank loan portfolio.

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

5 unchanged sentences

$ in millions Amount Ratio Amount Ratio Amount Ratio

Raymond James Bank as of June 30, 2023:

Raymond James Bank as of December 31, 2023:

Tier 1 leverage $ 3,375 7.9 % $ 1,702 4.0 % $ 2,127 5.0 %

9 unchanged sentences

Total capital $ 3,662 15.0 % $ 1,954 8.0 % $ 2,442 10.0 %

Raymond James Bank’s regulatory capital increased compared with September 30, 2022, driven by positive earnings, partially offset by dividends paid to RJF.

Raymond James Bank’s Tier 1 capital and Total capital ratios increased compared with September 30, 2022 resulting from the increase in regulatory capital and a decrease in risk-weighted assets largely due to a decrease in the bank loan and available-for-sale securities portfolios.

Raymond James Bank’s Tier 1 leverage ratio at June 30, 2023 increased compared with September 30, 2022 due to the increase in regulatory capital, partially offset by an increase in average assets, primarily driven by higher cash balances.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Actual Requirement for capital

adequacy purposes To be well-capitalized

under regulatory provisions

$ in millions Amount Ratio Amount Ratio Amount Ratio

TriState Capital Bank as of June 30, 2023:

TriState Capital Bank as of December 31, 2023:

Tier 1 leverage $ 1,358 7.1 % $ 764 4.0 % $ 956 5.0 %

11 unchanged sentences

$ 1,333 15.3 % $ 699 8.0 % $ 874 10.0 %

TriState Capital Bank’s regulatory capital increased compared with September 30, 2022, driven by positive earnings.

TriState Capital Bank’s Tier 1 capital and Total capital ratios increased compared with September 30, 2022, due to the increase in regulatory capital, partially offset by an increase in risk-weighted assets primarily resulting from increases in bank loans and available-for-sale securities.

TriState Capital Bank’s Tier 1 leverage ratio at June 30, 2023 decreased slightly compared with September 30, 2022 as the increase in regulatory capital was offset by an increase in average assets, primarily driven by higher cash balances, as well as the increases in bank loans and available-for-sale securities.

Our banking subsidiaries may pay dividends to RJF without prior approval of their respective regulators subject to certain restrictions including retained net income and targeted regulatory capital ratios.

Dividends paid to RJF from our banking subsidiaries may be limited to the extent that capital is needed to support their balance sheet growth.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Our bank subsidiaries may pay dividends to RJF without prior approval of their respective regulators subject to certain restrictions including retained net income and targeted regulatory capital ratios.

Dividends paid to RJF from our bank subsidiaries may be limited to the extent that capital is needed to support their balance sheet growth.

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 June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

Raymond James & Associates, Inc.

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Excess net capital

$ 1,016 $ 1,096

As of June 30, 2023, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

As of December 31, 2023, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.

NOTE 21 – EARNINGS PER SHARE

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

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

Three months ended December 31,

in millions, except per share amounts 2023 2022

2 unchanged sentences

Less allocation of earnings and dividends to participating securities

( 1 ) ( 1 ) ( 4 ) ( 2 )

Net income available to common shareholders after participating securities $ 496 $ 506

2 unchanged sentences

Less allocation of earnings and dividends to participating securities

( 1 ) ( 1 ) ( 4 ) ( 2 )

Net income available to common shareholders after participating securities $ 496 $ 506

1 unchanged sentence

Average common shares in basic computation

210.1 210.7 213.0 208.1

Dilutive effect of outstanding stock options and certain RSUs

4.7 5.0 5.0 5.4

Average common and common equivalent shares used in diluted computation 213.8 220.4

3 unchanged sentences

Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive

1.8 0.5 1.4 0.4

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, as well as the RSAs granted as part of our acquisition of TriState Capital, plus an allocation of undistributed earnings to such participating securities.

Participating securities and related dividends paid on these participating securities were insignificant for each of the three and nine months ended June 30, 2023 and 2022.

The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the period to participating securities, consisting of RSAs and 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 each of the three months ended December 31, 2023 and 2022.

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

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The following table presents information concerning operations in these segments.

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

Three months ended December 31,

$ in millions 2023 2022

2 unchanged sentences

Capital Markets

276 383 873 1,410

Asset Management

226 228 649 698

Bank 514 276 1,562 656

15 ( 21 ) 34 ( 54 )

Intersegment eliminations

4 unchanged sentences

Capital Markets

( 34 ) 61 ( 84 ) 349

Asset Management

89 93 251 303

Bank 66 74 293 259

( 46 ) ( 64 ) ( 51 ) ( 164 )

Total pre-tax income $ 630 $ 652

(1) The nine months ended June 30, 2023 included the favorable impact of a $ 32 million insurance settlement received during the period related to a previously settled litigation matter.

This item has been reflected as an offset to “Other” expenses on our Condensed Consolidated Statements of Income and Comprehensive Income.

No individual client accounted for more than ten percent of revenues in any of the periods presented.

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

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

Three months ended December 31,

$ in millions 2023 2022

Net interest income/(expense):

Net interest income:

Private Client Group

$ 89 $ 58 $ 264 $ 122

Capital Markets

Asset Management

Bank 497 270 1,518 636

Other 13 ( 18 ) 28 ( 61 )

Net interest income $ 546 $ 586

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

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

Total assets:

9 unchanged sentences

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

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

Private Client Group $ 571 $ 564

3 unchanged sentences

We have operations in the U.S., Canada, and Europe.

Substantially all long-lived assets are located in the U.S.

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

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

The vast majority of our long-lived assets are located in the U.S.

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

Three months ended December 31,

$ in millions 2023 2022

5 unchanged sentences

Pre-tax income/(loss):

$ 492 $ 393 $ 1,625 $ 1,330

Canada 17 20 84 52

Europe ( 2 ) 12

1 unchanged sentence

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

$ in millions June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

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 June 30, 2023 September 30, 2022

$ in millions December 31, 2023 September 30, 2023

$ 1,250 $ 1,250

4 unchanged sentences

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