RAYMOND JAMES FINANCIAL INC 10-Q

ITEM 1. FINANCIAL STATEMENTS RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) $ in millions, except per share amounts March 31, 2024 September 30, 2023 Assets: Cash and cash equivalents $ 10,001 $ 9,313 Assets segregated for regulatory purposes and restricted cash 3,705 3,235 Collateralized agreements 727 418 Financial instruments, at fair value: Trading assets ( $ 1,257 and $ 1,062 pledged as collateral) 1,434 1,187 Available-for-sale securities ( $ 20 and $ 22 pledged as collateral) 9,031 9,181 Derivative assets 206 265 Other investments ( $ 6 and $ 7 pledged as collateral) 306 306 Brokerage client receivables, net 2,782 2,525 Other receivables, net 1,999 1,608 Bank loans, net 44,099 43,775 Loans to financial advisors, net 1,190 1,136 Deferred income taxes, net 656 711 Goodwill and identifiable intangible assets, net 1,894 1,907 Other assets 3,202 2,793 Total assets $ 81,232 $ 78,360 Liabilities and shareholders’ equity: Bank deposits $ 54,843 $ 54,199 Collateralized financings 955 337 Financial instrument liabilities, at fair value: Trading liabilities 904 716 Derivative liabilities 365 490 Brokerage client payables 6,038 5,447 Accrued compensation, commissions and benefits 1,757 1,914 Other payables 2,053 1,931 Other borrowings 1,299 1,100 Senior notes payable 2,039 2,039 Total liabilities 70,253 68,173 Commitments and contingencies (see Note 16) Shareholders’ equity Preferred stock 79 79 Common stock; $ .01 par value; 650,000,000 shares authorized; 249,799,231 shares issued and 207,318,494 shares outstanding as of March 31, 2024; 248,728,805 shares issued and 208,769,095 shares outstanding as of September 30, 2023 2 2 Additional paid-in capital 3,186 3,143 Retained earnings 10,988 10,213 Treasury stock, at cost; 42,480,737 and 39,959,710 common shares as of March 31, 2024 and September 30, 2023, respectively ( 2,547 ) ( 2,252 ) Accumulated other comprehensive loss ( 724 ) ( 971 ) Total equity attributable to Raymond James Financial, Inc. 10,984 10,214 Noncontrolling interests ( 5 ) ( 27 ) Total shareholders’ equity 10,979 10,187 Total liabilities and shareholders’ equity $ 81,232 $ 78,360 See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). 3 Index RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) Three months ended March 31, Six months ended March 31, in millions, except per share amounts 2024 2023 2024 2023 Revenues: Asset management and related administrative fees $ 1,516 $ 1,302 $ 2,923 $ 2,544 Brokerage revenues: Securities commissions 414 369 797 721 Principal transactions 114 127 253 259 Total brokerage revenues 528 496 1,050 980 Account and service fees 335 258 654 547 Investment banking 179 154 360 295 Interest income 1,049 915 2,102 1,742 Other 31 32 69 76 Total revenues 3,638 3,157 7,158 6,184 Interest expense ( 520 ) ( 284 ) ( 1,027 ) ( 525 ) Net revenues 3,118 2,873 6,131 5,659 Non-interest expenses: Compensation, commissions and benefits 2,043 1,820 3,964 3,556 Non-compensation expenses: Communications and information processing 165 153 315 292 Occupancy and equipment 73 68 145 134 Business development 60 54 121 110 Investment sub-advisory fees 44 36 84 70 Professional fees 33 38 65 70 Bank loan provision for credit losses 21 28 33 42 Other 70 119 165 176 Total non-compensation expenses 466 496 928 894 Total non-interest expenses 2,509 2,316 4,892 4,450 Pre-tax income 609 557 1,239 1,209 Provision for income taxes 133 130 265 273 Net income 476 427 974 936 Preferred stock dividends 2 2 3 4 Net income available to common shareholders $ 474 $ 425 $ 971 $ 932 Earnings per common share – basic $ 2.27 $ 1.97 $ 4.65 $ 4.33 Earnings per common share – diluted $ 2.22 $ 1.93 $ 4.54 $ 4.23 Weighted-average common shares outstanding – basic 208.3 214.3 208.4 214.5 Weighted-average common and common equivalent shares outstanding – diluted 213.4 219.2 213.5 219.7 Net income $ 476 $ 427 $ 974 $ 936 Other comprehensive income/(loss), net of tax: Available-for-sale securities ( 26 ) 97 244 144 Currency translations, net of the impact of net investment hedges ( 11 ) 7 18 53 Cash flow hedges 6 ( 11 ) ( 15 ) ( 13 ) Total other comprehensive income/(loss), net of tax ( 31 ) 93 247 184 Total comprehensive income $ 445 $ 520 $ 1,221 $ 1,120 See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). 4 Index RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) Three months ended March 31, Six months ended March 31, $ in millions, except per share amounts 2024 2023 2024 2023 Preferred stock: Balance beginning of period $ 79 $ 120 $ 79 $ 120 Share issuances — — — — Balance end of period 79 120 79 120 Common stock, par value $ .01 per share: Balance beginning of period 2 2 2 2 Share issuances — — — — Balance end of period 2 2 2 2 Additional paid-in capital: Balance beginning of period 3,158 2,975 3,143 2,987 Employee stock purchases 14 15 22 22 Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures ( 41 ) ( 11 ) ( 123 ) ( 110 ) Share-based compensation amortization 55 56 144 136 Balance end of period 3,186 3,035 3,186 3,035 Retained earnings: Balance beginning of period 10,609 9,254 10,213 8,843 Net income attributable to Raymond James Financial, Inc. 476 427 974 936 Common and preferred stock cash dividends declared (see Note 17) ( 97 ) ( 91 ) ( 199 ) ( 189 ) Balance end of period 10,988 9,590 10,988 9,590 Treasury stock: Balance beginning of period ( 2,365 ) ( 1,604 ) ( 2,252 ) ( 1,512 ) Purchases/surrenders ( 213 ) ( 358 ) ( 372 ) ( 505 ) Reissuances due to vesting of restricted stock units and exercise of stock options 31 8 77 63 Balance end of period ( 2,547 ) ( 1,954 ) ( 2,547 ) ( 1,954 ) Accumulated other comprehensive loss: Balance beginning of period ( 693 ) ( 891 ) ( 971 ) ( 982 ) Other comprehensive income/(loss), net of tax ( 31 ) 93 247 184 Balance end of period ( 724 ) ( 798 ) ( 724 ) ( 798 ) Total equity attributable to Raymond James Financial, Inc. $ 10,984 $ 9,995 $ 10,984 $ 9,995 Noncontrolling interests: Balance beginning of period $ ( 9 ) $ ( 26 ) $ ( 27 ) $ ( 26 ) Consolidations and other 4 — 22 — Balance end of period ( 5 ) ( 26 ) ( 5 ) ( 26 ) Total shareholders’ equity $ 10,979 $ 9,969 $ 10,979 $ 9,969 See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). 5 Index RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended March 31, $ in millions 2024 2023 Cash flows from operating activities: Net income $ 974 $ 936 Adjustments to reconcile net income to net cash provided by/(used in) operating activities: Depreciation and amortization 87 81 Deferred income taxes, net ( 26 ) ( 4 ) Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments ( 17 ) ( 23 ) Provisions for credit losses and legal and regulatory matters, net — 78 Share-based compensation expense 147 138 Unrealized gain on company-owned life insurance policies, net of expenses ( 162 ) ( 86 ) Other 4 ( 3 ) Net change in: Collateralized agreements, net of collateralized financings 309 186 Loans (provided to) financial advisors, net of repayments ( 66 ) 34 Brokerage client receivables and other receivables, net ( 569 ) 145 Trading instruments, net ( 57 ) 163 Derivative instruments, net ( 85 ) ( 122 ) Other assets ( 33 ) ( 65 ) Brokerage client payables and other payables 583 ( 4,892 ) Accrued compensation, commissions and benefits ( 160 ) ( 332 ) Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale 5 6 Net cash provided by/(used in) operating activities 934 ( 3,760 ) Cash flows from investing activities: Increase in bank loans, net ( 470 ) ( 621 ) Proceeds from sales of loans held for investment 164 142 Purchases of available-for-sale securities ( 348 ) ( 325 ) Available-for-sale securities maturations, repayments and redemptions 733 639 Additions to property and equipment ( 99 ) ( 69 ) Purchases of Federal Reserve Bank and Federal Home Loan Bank stock, net ( 1 ) ( 35 ) Investment in solar tax credit equity investment ( 15 ) — Purchases of other investments, net — ( 6 ) Other investing activities, net ( 73 ) ( 44 ) Net cash used in investing activities ( 109 ) ( 319 ) See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). 6 Index RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended March 31, $ in millions 2024 2023 Cash flows from financing activities: Increase in bank deposits 644 2,872 Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements ( 412 ) ( 558 ) Dividends on common and preferred stock ( 193 ) ( 174 ) Exercise of stock options and employee stock purchases 28 25 Proceeds from Federal Home Loan Bank advances 750 1,650 Repayments of Federal Home Loan Bank advances and other borrowed funds ( 750 ) ( 1,291 ) Proceeds from short-term borrowings, net 200 — Other financing, net ( 1 ) ( 2 ) Net cash provided by financing activities 266 2,522 Currency adjustment: Effect of exchange rate changes on cash and cash equivalents, including those segregated for regulatory purposes 67 258 Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash 1,158 ( 1,299 ) Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year 12,548 14,659 Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period $ 13,706 $ 13,360 Cash and cash equivalents $ 10,001 $ 8,663 Cash and cash equivalents segregated for regulatory purposes and restricted cash 3,705 4,697 Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period $ 13,706 $ 13,360 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,049 $ 483 Cash paid for income taxes, net $ 373 $ 389 Cash outflows for lease liabilities $ 60 $ 60 Non-cash right-of-use assets recorded for new and modified leases $ 25 $ 42 See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). 7 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) March 31, 2024 NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Organization Raymond James Financial, Inc. (“RJF” or the “firm”) is a financial holding company which, together with its subsidiaries, is engaged in various financial services activities, including providing investment management services to retail and institutional clients, merger & acquisition and advisory services, the underwriting, distribution, trading and brokerage of equity and debt securities, and the sale of mutual funds and other investment products. The firm also provides corporate and retail banking services and trust services. As used herein, the terms “our,” “we,” or “us” refer to RJF and/or one or more of its subsidiaries. Basis of presentation The accompanying unaudited condensed consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100 %-owned subsidiaries. In addition, we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 of our Annual Report on Form 10-K (“2023 Form 10-K”) for the year ended September 30, 2023, as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 9 of this Quarterly Report on Form 10-Q (“Form 10-Q”). When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation. Accounting estimates and assumptions Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) but is not required for interim reporting purposes has been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary for a fair presentation of our consolidated financial position and results of operations for the periods presented. The nature of our business is such that the results of any interim period are not necessarily indicative of results for a full year. 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 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. 8 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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. During the three and six months ended March 31, 2024, 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 section. 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. 9 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 3 – FAIR VALUE Our “Financial instruments” and “Financial instrument liabilities” on our Condensed Consolidated Statements of Financial Condition are recorded at fair value. 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. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Condensed Consolidated Statements of Financial Condition. See Note 5 for additional information. $ in millions Level 1 Level 2 Level 3 Netting adjustments Balance as of March 31, 2024 Assets at fair value on a recurring basis: Trading assets: Municipal and provincial obligations $ — $ 266 $ — $ — $ 266 Corporate obligations 20 673 — — 693 Government and agency obligations 35 152 — — 187 Agency mortgage-backed securities (“MBS”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABS”) — 198 — — 198 Non-agency CMOs and ABS — 67 — — 67 Total debt securities 55 1,356 — — 1,411 Equity securities 10 3 — — 13 Brokered certificates of deposit — 6 — — 6 Other — — 4 — 4 Total trading assets 65 1,365 4 — 1,434 Available-for-sale securities (1) 1,180 7,851 — — 9,031 Derivative assets: Interest rate 4 403 — ( 202 ) 205 Foreign exchange — 1 — — 1 Total derivative assets 4 404 — ( 202 ) 206 All other investments: Government and agency obligations (2) 71 — — — 71 Other 106 1 29 — 136 Total all other investments 177 1 29 — 207 Other assets - client-owned fractional shares 119 — — — 119 Subtotal 1,545 9,621 33 ( 202 ) 10,997 Other investments - private equity - measured at net asset value (“NAV”) 99 Total assets at fair value on a recurring basis $ 1,545 $ 9,621 $ 33 $ ( 202 ) $ 11,096 Liabilities at fair value on a recurring basis: Trading liabilities: Municipal and provincial obligations $ 6 $ — $ — $ — $ 6 Corporate obligations — 583 — — 583 Government and agency obligations 231 1 — — 232 Agency MBS and CMOs — 58 — — 58 Total debt securities 237 642 — — 879 Equity securities 25 — — — 25 Total trading liabilities 262 642 — — 904 Derivative liabilities: Interest rate 4 441 — ( 85 ) 360 Foreign exchange — 5 — — 5 Total derivative liabilities 4 446 — ( 85 ) 365 Other payables - repurchase liabilities related to client-owned fractional shares 119 — — — 119 Total liabilities at fair value on a recurring basis $ 385 $ 1,088 $ — $ ( 85 ) $ 1,388 10 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index $ in millions Level 1 Level 2 Level 3 Netting adjustments Balance as of September 30, 2023 Assets at fair value on a recurring basis: Trading assets: Municipal and provincial obligations $ — $ 239 $ — $ — $ 239 Corporate obligations 22 620 — — 642 Government and agency obligations 24 117 — — 141 Agency MBS, CMOs, and ABS — 35 — — 35 Non-agency CMOs and ABS — 68 — — 68 Total debt securities 46 1,079 — — 1,125 Equity securities 20 2 — — 22 Brokered certificates of deposit — 36 — — 36 Other — — 4 — 4 Total trading assets 66 1,117 4 — 1,187 Available-for-sale securities (1) 1,240 7,941 — — 9,181 Derivative assets: Interest rate 14 503 — ( 261 ) 256 Foreign exchange — 9 — — 9 Total derivative assets 14 512 — ( 261 ) 265 All other investments: Government and agency obligations (2) 71 — — — 71 Other 102 2 30 — 134 Total all other investments 173 2 30 — 205 Other assets - client-owned fractional shares 98 — — — 98 Subtotal 1,591 9,572 34 ( 261 ) 10,936 Other investments - private equity - measured at NAV 101 Total assets at fair value on a recurring basis $ 1,591 $ 9,572 $ 34 $ ( 261 ) $ 11,037 Liabilities at fair value on a recurring basis: Trading liabilities: Municipal and provincial obligations $ 10 $ — $ — $ — $ 10 Corporate obligations — 514 — — 514 Government and agency obligations 161 1 — — 162 Total debt securities 171 515 — — 686 Equity securities 30 — — — 30 Total trading liabilities 201 515 — — 716 Derivative liabilities: Interest rate 13 563 — ( 88 ) 488 Foreign exchange — 2 — — 2 Total derivative liabilities 13 565 — ( 88 ) 490 Other payables - repurchase liabilities related to client-owned fractional shares 98 — — — 98 Total liabilities at fair value on a recurring basis $ 312 $ 1,080 $ — $ ( 88 ) $ 1,304 (1) Our available-for-sale securities primarily consist of agency MBS, agency CMOs, and U.S. Treasury securities (“U.S. Treasuries”). See Note 4 for further information. (2) These assets are primarily comprised of U.S. Treasuries purchased to meet certain deposit requirements with clearing organizations. 11 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Level 3 recurring fair value measurements The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. 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 March 31, 2024 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Derivative liabilities $ in millions Other All other Other Fair value beginning of period $ 1 $ 29 $ — Total gains/(losses) included in earnings — — — Purchases and contributions 17 — — Sales and distributions ( 14 ) — — Transfers: Into Level 3 — — — Out of Level 3 — — — Fair value end of period $ 4 $ 29 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ — $ — $ — Six months ended March 31, 2024 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Derivative liabilities $ in millions Other All other Other Fair value beginning of period $ 4 $ 30 $ — Total gains/(losses) included in earnings — ( 1 ) — Purchases and contributions 29 — — Sales and distributions ( 29 ) — — Transfers: Into Level 3 — — — Out of Level 3 — — — Fair value end of period $ 4 $ 29 $ — Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ — $ ( 1 ) $ — 12 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Three months ended March 31, 2023 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Derivative liabilities $ in millions Other All other Other Fair value beginning of period $ 6 $ 30 $ ( 4 ) Total gains/(losses) included in earnings — ( 2 ) — Purchases and contributions 11 — — Sales and distributions ( 14 ) — — Transfers: Into Level 3 — — — Out of Level 3 — — — Fair value end of period $ 3 $ 28 $ ( 4 ) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ — $ ( 2 ) $ — Six months ended March 31, 2023 Level 3 instruments at fair value Financial assets Financial liabilities Trading assets Other investments Derivative liabilities $ in millions Other All other Other Fair value beginning of period $ 1 $ 29 $ ( 3 ) Total gains/(losses) included in earnings — ( 1 ) ( 1 ) Purchases and contributions 36 — — Sales, distributions, and deconsolidations ( 34 ) — — Transfers: Into Level 3 — — — Out of Level 3 — — — Fair value end of period $ 3 $ 28 $ ( 4 ) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ — $ ( 1 ) $ ( 1 ) As of both March 31, 2024 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 March 31, 2024 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 As more fully described in Note 2 of our 2023 Form 10-K, as a practical expedient, we utilize NAV or its equivalent to determine the recorded value of a portion of our private equity investments portfolio. We utilize NAV when the fund investment does not have a readily determinable fair value and the NAV of the fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value. Our private equity portfolio as of March 31, 2024 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. Our investments are monetized through the liquidation of underlying assets of fund investments, the timing of which is uncertain. 13 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ in millions Recorded value Unfunded commitment March 31, 2024 Private equity investments measured at NAV $ 99 $ 26 Private equity investments not measured at NAV 7 Total private equity investments $ 106 September 30, 2023 Private equity investments measured at NAV $ 101 $ 29 Private equity investments not measured at NAV 7 Total private equity investments $ 108 Financial instruments measured at fair value on a nonrecurring basis The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument. $ in millions Level 2 Level 3 Total fair value Valuation technique(s) Unobservable input Range (weighted-average) March 31, 2024 Bank loans: Residential mortgage loans $ 2 $ 8 $ 10 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. ( 10.3 yrs.) Corporate loans $ — $ 125 $ 125 Collateral or discounted cash flow (1) Recovery rate 33 % - 59 % ( 56 %) Loans held for sale $ 41 $ — $ 41 N/A N/A N/A September 30, 2023 Bank loans: Residential mortgage loans $ 2 $ 8 $ 10 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. ( 10.3 yrs.) Corporate loans $ — $ 84 $ 84 Collateral or discounted cash flow (1) Recovery rate 22 % - 65 % ( 53 %) Loans held for sale $ 2 $ — $ 2 N/A N/A N/A (1) The valuation techniques used to estimate the fair values are based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent. Unobservable inputs used in the collateral valuation technique are not meaningful and unobservable inputs used in the discounted cash flow valuation technique are presented in the table. 14 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Financial instruments not recorded at fair value 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 March 31, 2024 and September 30, 2023. This table excludes financial instruments that are carried at amounts which approximate 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 March 31, 2024 Financial assets: Bank loans, net $ 105 $ 42,877 $ 42,982 $ 43,923 Financial liabilities: Bank deposits - certificates of deposit $ 2,465 $ — $ 2,465 $ 2,471 Other borrowings - subordinated notes payable $ 95 $ — $ 95 $ 99 Senior notes payable $ 1,798 $ — $ 1,798 $ 2,039 September 30, 2023 Financial assets: Bank loans, net $ 142 $ 42,622 $ 42,764 $ 43,679 Financial liabilities: Bank deposits - certificates of deposit $ 2,817 $ — $ 2,817 $ 2,831 Other borrowings - subordinated notes payable $ 94 $ — $ 94 $ 100 Senior notes payable $ 1,640 $ — $ 1,640 $ 2,039 15 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 4 – 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. See Note 3 for additional information regarding the fair value of available-for-sale securities. $ in millions Cost basis Gross unrealized gains Gross unrealized losses Fair value March 31, 2024 Agency residential MBS $ 4,522 $ 1 $ ( 476 ) $ 4,047 Agency commercial MBS 1,450 — ( 165 ) 1,285 Agency CMOs 1,401 — ( 216 ) 1,185 Other agency obligations 658 — ( 17 ) 641 Non-agency residential MBS 582 1 ( 44 ) 539 U.S. Treasuries 1,188 — ( 8 ) 1,180 Corporate bonds 140 1 ( 5 ) 136 Other 18 — — 18 Total available-for-sale securities $ 9,959 $ 3 $ ( 931 ) $ 9,031 September 30, 2023 Agency residential MBS $ 4,865 $ — $ ( 654 ) $ 4,211 Agency commercial MBS 1,464 — ( 211 ) 1,253 Agency CMOs 1,448 — ( 265 ) 1,183 Other agency obligations 710 — ( 31 ) 679 Non-agency residential MBS 527 — ( 64 ) 463 U.S. Treasuries 1,261 — ( 21 ) 1,240 Corporate bonds 140 — ( 6 ) 134 Other 18 — — 18 Total available-for-sale securities $ 10,433 $ — $ ( 1,252 ) $ 9,181 The amortized costs and fair values in the preceding table exclude $ 28 million of accrued interest on available-for-sale securities as of both March 31, 2024 and September 30, 2023, 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”). 16 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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. As a result, the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 3.9 years as of March 31, 2024. March 31, 2024 $ in millions Within one year After one but within five years After five but within ten years After ten years Total Agency residential MBS Amortized cost $ — $ 112 $ 1,917 $ 2,493 $ 4,522 Fair value $ — $ 109 $ 1,740 $ 2,198 $ 4,047 Weighted-average yield — % 2.52 % 1.31 % 2.02 % 1.73 % Agency commercial MBS Amortized cost $ 38 $ 950 $ 413 $ 49 $ 1,450 Fair value $ 38 $ 867 $ 340 $ 40 $ 1,285 Weighted-average yield 3.48 % 1.57 % 1.16 % 1.87 % 1.51 % Agency CMOs Amortized cost $ — $ 6 $ 37 $ 1,358 $ 1,401 Fair value $ — $ 6 $ 33 $ 1,146 $ 1,185 Weighted-average yield — % 2.46 % 1.50 % 1.69 % 1.69 % Other agency obligations Amortized cost $ 165 $ 403 $ 80 $ 10 $ 658 Fair value $ 161 $ 395 $ 76 $ 9 $ 641 Weighted-average yield 2.28 % 3.62 % 3.43 % 3.07 % 3.25 % Non-agency residential MBS Amortized cost $ — $ — $ — $ 582 $ 582 Fair value $ — $ — $ — $ 539 $ 539 Weighted-average yield — % — % — % 4.42 % 4.42 % U.S. Treasuries Amortized cost $ 847 $ 341 $ — $ — $ 1,188 Fair value $ 840 $ 340 $ — $ — $ 1,180 Weighted-average yield 3.07 % 5.30 % — % — % 3.71 % Corporate bonds Amortized cost $ 33 $ 84 $ 23 $ — $ 140 Fair value $ 33 $ 82 $ 21 $ — $ 136 Weighted-average yield 4.68 % 5.66 % 5.06 % — % 5.33 % Other Amortized cost $ — $ 5 $ 5 $ 8 $ 18 Fair value $ — $ 4 $ 5 $ 9 $ 18 Weighted-average yield — % 7.37 % 5.21 % 8.28 % 7.24 % Total available-for-sale securities Amortized cost $ 1,083 $ 1,901 $ 2,475 $ 4,500 $ 9,959 Fair value $ 1,072 $ 1,803 $ 2,215 $ 3,941 $ 9,031 Weighted-average yield 3.01 % 2.93 % 1.40 % 2.24 % 2.25 % 17 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index The following table details the gross unrealized losses and fair values of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position. Less than 12 months 12 months or more Total $ in millions Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses March 31, 2024 Agency residential MBS $ 50 $ ( 1 ) $ 3,907 $ ( 475 ) $ 3,957 $ ( 476 ) Agency commercial MBS — — 1,282 ( 165 ) 1,282 ( 165 ) Agency CMOs 10 — 1,155 ( 216 ) 1,165 ( 216 ) Other agency obligations — — 641 ( 17 ) 641 ( 17 ) Non-agency residential MBS 32 — 433 ( 44 ) 465 ( 44 ) U.S. Treasuries 95 — 760 ( 8 ) 855 ( 8 ) Corporate bonds — — 87 ( 5 ) 87 ( 5 ) Other — — 9 — 9 — Total $ 187 $ ( 1 ) $ 8,274 $ ( 930 ) $ 8,461 $ ( 931 ) September 30, 2023 Agency residential MBS $ 73 $ ( 3 ) $ 4,119 $ ( 651 ) $ 4,192 $ ( 654 ) Agency commercial MBS 3 — 1,250 ( 211 ) 1,253 ( 211 ) Agency CMOs — — 1,183 ( 265 ) 1,183 ( 265 ) Other agency obligations 97 ( 1 ) 582 ( 30 ) 679 ( 31 ) Non-agency residential MBS 62 ( 1 ) 401 ( 63 ) 463 ( 64 ) U.S. Treasuries 120 — 995 ( 21 ) 1,115 ( 21 ) Corporate bonds 13 — 78 ( 6 ) 91 ( 6 ) Other 5 — 9 — 14 — Total $ 373 $ ( 5 ) $ 8,617 $ ( 1,247 ) $ 8,990 $ ( 1,252 ) At March 31, 2024, of the 1,035 available-for-sale securities in an unrealized loss position, 19 were in a continuous unrealized loss position for less than 12 months and 1,016 securities were in a continuous unrealized loss position for greater than 12 months. At March 31, 2024, 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 $ 4.51 billion and $ 2.71 billion, respectively, and fair values of $ 4.01 billion and $ 2.38 billion, respectively. During the three and six months ended March 31, 2024 and 2023, there were no sales of available-for-sale securities. 18 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 5 – DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” on our Condensed Consolidated Statements of Financial Condition. Cash flows related to our derivatives are included within operating activities on the Condensed Consolidated Statements of Cash Flows. The significant accounting policies governing our derivatives, including our methodologies for determining fair value, are described in Note 2 of our 2023 Form 10-K. Derivative balances included on our financial statements The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. March 31, 2024 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 (1) $ 402 $ 445 $ 18,747 $ 509 $ 576 $ 18,270 Foreign exchange 1 2 1,101 4 2 1,191 Other — — 943 — — 608 Subtotal 403 447 20,791 513 578 20,069 Derivatives designated as hedging instruments Interest rate 5 — 1,300 8 — 1,200 Foreign exchange — 3 1,198 5 — 1,172 Subtotal 5 3 2,498 13 — 2,372 Total gross fair value/notional amount 408 450 $ 23,289 526 578 $ 22,441 Offset on the Condensed Consolidated Statements of Financial Condition Counterparty netting ( 32 ) ( 32 ) ( 29 ) ( 29 ) Cash collateral netting ( 170 ) ( 53 ) ( 232 ) ( 59 ) Total amounts offset ( 202 ) ( 85 ) ( 261 ) ( 88 ) Net amounts presented on the Condensed Consolidated Statements of Financial Condition $ 206 $ 365 $ 265 $ 490 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition Financial instruments ( 99 ) — ( 131 ) — Total $ 107 $ 365 $ 134 $ 490 (1) Included to-be-announced security contracts that are accounted for as derivatives. The following table details the gains/(losses) included in accumulated other comprehensive 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. See Note 17 for additional information. Three months ended March 31, Six months ended March 31, $ in millions 2024 2023 2024 2023 Interest rate (cash flow hedges) $ 6 $ ( 11 ) $ ( 15 ) $ ( 13 ) Foreign exchange (net investment hedges) 22 ( 3 ) — ( 17 ) Total gains/(losses) included in AOCI, net of taxes $ 28 $ ( 14 ) $ ( 15 ) $ ( 30 ) There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three and six months ended March 31, 2024 and 2023. We expect to reclassify $ 30 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 . 19 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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 March 31, Six months ended March 31, Location of gain/(loss) 2024 2023 2024 2023 Interest rate Principal transactions/other revenues $ 3 $ 5 $ 4 $ 11 Foreign exchange Other revenues $ 25 $ ( 6 ) $ ( 8 ) $ ( 36 ) Other Principal transactions $ — $ — $ — $ ( 1 ) Risks associated with our derivatives and related risk mitigation Credit risk We are exposed to credit losses primarily in the event of nonperformance by the counterparties to derivatives that are not cleared through a clearing organization. Where we are subject to credit exposure, we perform a credit evaluation of counterparties prior to entering into derivative transactions and we continue to monitor their credit standings on an ongoing basis. 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, 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. Interest rate and foreign exchange risk We are exposed to interest rate risk related to certain of our interest rate derivatives. We are also exposed to foreign exchange risk related to our forward foreign exchange derivatives. On a daily basis, we monitor our risk exposure on our derivatives based on established sensitivity-based and foreign exchange spot limits. Derivatives with credit-risk-related contingent features Certain of our derivative contracts contain provisions that require our debt to maintain an investment-grade rating from one or more of the major credit rating agencies or contain provisions related to default on certain of our outstanding debt. 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 $ 2 million as of March 31, 2024 and $ 3 million as of September 30, 2023. 20 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 6 – COLLATERALIZED AGREEMENTS AND FINANCINGS Collateralized agreements are comprised of securities purchased under agreements to resell (“reverse repurchase agreements”) and securities borrowed. Collateralized financings are comprised of securities sold under agreements to repurchase (“repurchase agreements”) and securities loaned. We enter into these transactions in order to facilitate client activities, acquire securities to cover short positions and finance certain firm activities. The significant accounting policies governing our collateralized agreements and financings are described in Note 2 of our 2023 Form 10-K. Our reverse repurchase agreements, repurchase agreements, securities borrowing, and securities lending transactions are governed by master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the parties to the transaction. For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowed, and securities loaned because the conditions for netting as specified by GAAP are not met. Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table. Collateralized agreements Collateralized financings $ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total March 31, 2024 Gross amounts of recognized assets/liabilities $ 449 $ 278 $ 727 $ 371 $ 584 $ 955 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Condensed Consolidated Statements of Financial Condition 449 278 727 371 584 955 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition ( 449 ) ( 271 ) ( 720 ) ( 371 ) ( 565 ) ( 936 ) Net amounts $ — $ 7 $ 7 $ — $ 19 $ 19 September 30, 2023 Gross amounts of recognized assets/liabilities $ 187 $ 231 $ 418 $ 157 $ 180 $ 337 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Condensed Consolidated Statements of Financial Condition 187 231 418 157 180 337 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition ( 187 ) ( 224 ) ( 411 ) ( 157 ) ( 173 ) ( 330 ) Net amounts $ — $ 7 $ 7 $ — $ 7 $ 7 The total amount of collateral received under reverse repurchase agreements and the total amount of collateral posted under repurchase agreements exceeds the carrying value of these agreements on our Condensed Consolidated Statements of Financial Condition. Repurchase agreements and securities loaned accounted for as secured borrowings The following table presents our repurchase agreements and securities lending transactions accounted for as secured borrowings by type of collateral. Such secured borrowings have no stated maturity and are generally overnight and continuous. $ in millions March 31, 2024 September 30, 2023 Repurchase agreements: Government and agency obligations $ 260 $ 122 Agency MBS and agency CMOs 111 35 Total repurchase agreements $ 371 $ 157 Securities loaned: Equity securities 584 180 Total collateralized financings $ 955 $ 337 21 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Collateral received and pledged We receive cash and securities as collateral, primarily in connection with reverse repurchase agreements, securities borrowing agreements, derivative transactions, and client margin loans. The collateral we receive reduces our credit exposure to individual counterparties. In many cases, we are permitted to deliver or repledge financial instruments we have received as collateral to satisfy our collateral requirements under our repurchase agreements, securities lending agreements or other secured borrowings, to satisfy deposit requirements with clearing organizations, or to otherwise meet either our or our clients’ settlement requirements. The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described. $ in millions March 31, 2024 September 30, 2023 Collateral we received that was available to be delivered or repledged $ 3,464 $ 3,267 Collateral that we delivered or repledged $ 1,725 $ 730 Encumbered assets We also 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. The following table presents information about our assets that have been pledged for such purposes. $ in millions March 31, 2024 September 30, 2023 Had the right to deliver or repledge $ 1,283 $ 1,091 Did not have the right to deliver or repledge $ 64 $ 63 We also 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. The FHLB does not have the ability to sell or repledge such securities until they are borrowed against. 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. The FRB does not have the ability to sell or repledge such securities. For additional information regarding our outstanding FHLB advances see Note 14. The following table presents information about our assets that have been pledged with the FHLB or FRB. $ in millions March 31, 2024 September 30, 2023 Assets pledged with the FHLB or FRB: Available-for-sale securities $ 3,796 $ 3,897 Bank loans 10,483 10,166 Total assets pledged with the FHLB or FRB $ 14,279 $ 14,063 22 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 7 – BANK LOANS, NET Bank client receivables are comprised of loans originated or purchased by our Bank segment and include securities-based loans (“SBL”), corporate loans (commercial and industrial (“C&I”) loans, commercial real estate (“CRE”) loans, and real estate investment trust (“REIT”) loans), residential mortgage loans, and tax-exempt loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured. We segregate our loan portfolio into six loan portfolio segments: SBL, C&I, CRE, REIT, residential mortgage, and tax-exempt. See Note 2 of our 2023 Form 10-K for a discussion of accounting policies related to bank loans and the allowance for credit losses. Loan balances in the following tables are presented at amortized cost (outstanding principal balance net of unamortized purchase discounts or premiums, unearned income, deferred origination fees and costs, and charge-offs), except for certain held for sale loans recorded at fair value. Bank loans are presented on our Condensed Consolidated Statements of Financial Condition at amortized cost (or fair value where applicable) less the allowance for credit losses (“ACL”). As it pertains to TriState Capital Bank’s loans acquired as of June 1, 2022, the amortized cost of such purchased loans reflects the fair value of the loans on the acquisition date, and as described further in Note 3 of our 2023 Form 10-K, the purchase discount on such loans is accreted to interest income over the weighted-average life of the underlying loans, which may vary based on prepayments. The following table presents the balances for held for investment loans by portfolio segment and held for sale loans. $ in millions March 31, 2024 September 30, 2023 SBL $ 14,610 $ 14,606 C&I loans 10,190 10,406 CRE loans 7,462 7,221 REIT loans 1,701 1,668 Residential mortgage loans 9,016 8,662 Tax-exempt loans 1,445 1,541 Total loans held for investment 44,424 44,104 Held for sale loans 146 145 Total loans held for sale and investment 44,570 44,249 Allowance for credit losses ( 471 ) ( 474 ) Bank loans, net (1) $ 44,099 $ 43,775 ACL as a % of total loans held for investment 1.06 % 1.07 % Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 212 $ 200 (1) Bank loans, net as of March 31, 2024 and September 30, 2023 are presented net of $ 28 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. (“TriState Capital”) acquisition. 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 14 for additional information regarding borrowings from the FHLB. Held for sale loans We originated or purchased $ 552 million and $ 993 million of loans held for sale during the three and six months ended March 31, 2024, respectively, and $ 624 million and $ 1.43 billion during the three and six months ended March 31, 2023, 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 $ 141 million and $ 243 million during the three and six months ended March 31, 2024, respectively, and $ 155 million and $ 353 million during the three and six months ended March 31, 2023, respectively. Net gains resulting from such sales were insignificant for each of the three and six months ended March 31, 2024 and 2023. 23 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Purchases and sales of loans held for investment The following table presents purchases and sales of loans held for investment by portfolio segment. $ in millions C&I loans CRE loans REIT loans Residential mortgage loans Total Three months ended March 31, 2024 Purchases $ 314 $ — $ — $ 77 $ 391 Sales $ 44 $ — $ 9 $ — $ 53 Six months ended March 31, 2024 Purchases $ 520 $ — $ — $ 122 $ 642 Sales $ 163 $ — $ 9 $ — $ 172 Three months ended March 31, 2023 Purchases $ 194 $ — $ — $ 110 $ 304 Sales $ 147 $ — $ — $ — $ 147 Six months ended March 31, 2023 Purchases $ 357 $ 39 $ 24 $ 300 $ 720 Sales $ 147 $ — $ — $ — $ 147 Sales in the preceding table represent the recorded investment (i.e., net of charge-offs and discounts or premiums) of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. 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. 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 March 31, 2024 SBL $ — $ — $ — $ — $ — $ 14,610 $ 14,610 C&I loans — — — 66 — 10,124 10,190 CRE loans 2 — 2 103 11 7,346 7,462 REIT loans — — — — — 1,701 1,701 Residential mortgage loans 3 — 3 — 7 9,006 9,016 Tax-exempt loans — — — — — 1,445 1,445 Total loans held for investment $ 5 $ — $ 5 $ 169 $ 18 $ 44,232 $ 44,424 September 30, 2023 SBL $ 9 $ — $ 9 $ — $ — $ 14,597 $ 14,606 C&I loans — — — 69 2 10,335 10,406 CRE loans — — — 35 13 7,173 7,221 REIT loans — — — — — 1,668 1,668 Residential mortgage loans 2 — 2 — 9 8,651 8,662 Tax-exempt loans — — — — — 1,541 1,541 Total loans held for investment $ 11 $ — $ 11 $ 104 $ 24 $ 43,965 $ 44,104 The preceding table includes $ 103 million and $ 96 million at March 31, 2024 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. Modifications of loans to borrowers experiencing financial difficulty are designed to reduce our loss exposure while providing borrowers with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Loan modifications to borrowers experiencing financial difficulty typically involve principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (i.e., payment or maturity forbearance greater than six months), or a term extension, or any combination thereof. Modified loans to 24 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index borrowers experiencing financial difficulty are subject to our nonaccrual policies. Loans to borrowers experiencing financial difficulty which were modified during the three and six months ended March 31, 2024 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. Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both March 31, 2024 and September 30, 2023. Collateral-dependent loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral. 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. $ in millions Nature of collateral March 31, 2024 September 30, 2023 C&I loans Commercial real estate and other business assets $ 9 $ 11 CRE loans Office, multi-family residential, healthcare, medical office, and industrial real estate $ 159 $ 47 Residential mortgage loans Single family homes $ 4 $ 5 CRE collateral dependent loans as of March 31, 2024 included certain loans that were placed on nonaccrual status with an associated allowance during the six months ended March 31, 2024. 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 March 31, 2024 and September 30, 2023, respectively. Credit quality indicators The credit quality of our bank loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators. These classifications are divided into three groups: Not Classified (Pass), Special Mention, and Classified or Adverse Rating (Substandard, Doubtful and Loss). These terms are defined as follows: Pass – Loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell, of any underlying collateral and generally are performing in accordance with the contractual terms. Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose us to sufficient risk to warrant an adverse classification. Substandard – Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Doubtful – Loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently-known facts, conditions and values. Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on our books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. We do not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification. 25 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index The following tables present our held for investment bank loan portfolio by credit quality indicator. Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans. As of and for the six months ended March 31, 2024 Loans by origination fiscal year $ in millions 2024 2023 2022 2021 2020 Prior Revolving loans Total SBL Risk rating: Pass $ 49 $ 25 $ 17 $ 85 $ 34 $ 76 $ 14,310 $ 14,596 Special mention — — — — — — — — Substandard (1) 14 — — — — — — 14 Doubtful — — — — — — — — Total SBL $ 63 $ 25 $ 17 $ 85 $ 34 $ 76 $ 14,310 $ 14,610 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — C&I loans Risk rating: Pass $ 222 $ 722 $ 1,203 $ 915 $ 867 $ 3,555 $ 2,540 $ 10,024 Special mention — — 5 — 39 — 1 45 Substandard — — — 29 55 21 16 121 Doubtful — — — — — — — — Total C&I loans $ 222 $ 722 $ 1,208 $ 944 $ 961 $ 3,576 $ 2,557 $ 10,190 Gross charge-offs $ — $ — $ — $ 1 $ 1 $ 29 $ — $ 31 CRE loans Risk rating: Pass $ 312 $ 1,217 $ 2,237 $ 1,093 $ 691 $ 1,303 $ 351 $ 7,204 Special mention — 5 26 — 14 20 — 65 Substandard — — 9 5 57 105 17 193 Doubtful — — — — — — — — Total CRE loans $ 312 $ 1,222 $ 2,272 $ 1,098 $ 762 $ 1,428 $ 368 $ 7,462 Gross charge offs $ — $ — $ — $ — $ — $ 7 $ — $ 7 REIT loans Risk rating: Pass $ 83 $ 217 $ 183 $ 221 $ 102 $ 253 $ 567 $ 1,626 Special mention — 12 — — — 12 51 75 Substandard — — — — — — — — Doubtful — — — — — — — — Total REIT loans $ 83 $ 229 $ 183 $ 221 $ 102 $ 265 $ 618 $ 1,701 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgage loans Risk rating: Pass $ 607 $ 1,720 $ 2,823 $ 1,575 $ 884 $ 1,349 $ 34 $ 8,992 Special mention — — 3 — — 6 — 9 Substandard — — 3 — — 12 — 15 Doubtful — — — — — — — — Total residential mortgage loans $ 607 $ 1,720 $ 2,829 $ 1,575 $ 884 $ 1,367 $ 34 $ 9,016 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Tax-exempt loans Risk rating: Pass $ 62 $ 57 $ 266 $ 156 $ 54 $ 850 $ — $ 1,445 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 62 $ 57 $ 266 $ 156 $ 54 $ 850 $ — $ 1,445 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) As of March 31, 2024, these balances relate to loans which were collateralized by private securities or other financial instruments with a limited trading market. 26 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index September 30, 2023 Loans by origination fiscal year $ in millions 2023 2022 2021 2020 2019 Prior Revolving loans Total SBL Risk rating: Pass $ 74 $ 18 $ 83 $ 40 $ 15 $ 59 $ 14,293 $ 14,582 Special mention — — — — — — — — Substandard (1) — — — — — — 24 24 Doubtful — — — — — — — — Total SBL $ 74 $ 18 $ 83 $ 40 $ 15 $ 59 $ 14,317 $ 14,606 C&I loans Risk rating: Pass $ 672 $ 1,148 $ 1,091 $ 965 $ 1,020 $ 2,675 $ 2,564 $ 10,135 Special mention — 5 29 69 — — 4 107 Substandard — — — 62 17 65 17 161 Doubtful — — — — — 3 — 3 Total C&I loans $ 672 $ 1,153 $ 1,120 $ 1,096 $ 1,037 $ 2,743 $ 2,585 $ 10,406 CRE loans Risk rating: Pass $ 1,130 $ 2,344 $ 1,115 $ 766 $ 604 $ 845 $ 220 $ 7,024 Special mention 7 — — 14 5 55 — 81 Substandard — — 5 32 12 67 — 116 Doubtful — — — — — — — — Total CRE loans $ 1,137 $ 2,344 $ 1,120 $ 812 $ 621 $ 967 $ 220 $ 7,221 REIT loans Risk rating: Pass $ 258 $ 200 $ 214 $ 101 $ 172 $ 176 $ 547 $ 1,668 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total REIT loans $ 258 $ 200 $ 214 $ 101 $ 172 $ 176 $ 547 $ 1,668 Residential mortgage loans Risk rating: Pass $ 1,765 $ 2,889 $ 1,607 $ 919 $ 433 $ 992 $ 31 $ 8,636 Special mention — — 2 — 2 5 — 9 Substandard — 2 — 1 — 14 — 17 Doubtful — — — — — — — — Total residential mortgage loans $ 1,765 $ 2,891 $ 1,609 $ 920 $ 435 $ 1,011 $ 31 $ 8,662 Tax-exempt loans Risk rating: Pass $ 147 $ 279 $ 161 $ 54 $ 97 $ 803 $ — $ 1,541 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — 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. 27 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index We also monitor the credit quality of the residential mortgage loan portfolio utilizing FICO scores and loan-to-value (“LTV”) ratios. A FICO score measures a borrower’s creditworthiness by considering factors such as payment and credit history. 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 LTV ratio at origination and by FICO score. March 31, 2024 Loans by origination fiscal year $ in millions 2024 2023 2022 2021 2020 Prior Revolving loans Total FICO score: Below 600 $ — $ 4 $ 11 $ 3 $ 3 $ 15 $ — $ 36 600 - 699 38 82 100 64 32 77 3 396 700 - 799 463 1,259 1,562 862 513 748 22 5,429 800 + 106 371 1,156 644 335 523 8 3,143 FICO score not available — 4 — 2 1 4 1 12 Total $ 607 $ 1,720 $ 2,829 $ 1,575 $ 884 $ 1,367 $ 34 $ 9,016 LTV ratio: Below 80% $ 442 $ 1,212 $ 2,170 $ 1,231 $ 685 $ 1,044 $ 33 $ 6,817 80%+ 165 508 659 344 199 323 1 2,199 Total $ 607 $ 1,720 $ 2,829 $ 1,575 $ 884 $ 1,367 $ 34 $ 9,016 September 30, 2023 Loans by origination fiscal year $ in millions 2023 2022 2021 2020 2019 Prior Revolving loans Total FICO score: Below 600 $ 7 $ 1 $ 3 $ 2 $ 3 $ 55 $ — $ 71 600 - 699 99 154 106 83 30 79 4 555 700 - 799 1,381 2,327 1,218 666 320 609 20 6,541 800 + 274 407 279 168 77 265 6 1,476 FICO score not available 4 2 3 1 5 3 1 19 Total $ 1,765 $ 2,891 $ 1,609 $ 920 $ 435 $ 1,011 $ 31 $ 8,662 LTV ratio: Below 80% $ 1,244 $ 2,218 $ 1,257 $ 716 $ 323 $ 780 $ 29 $ 6,567 80%+ 521 673 352 204 112 231 2 2,095 Total $ 1,765 $ 2,891 $ 1,609 $ 920 $ 435 $ 1,011 $ 31 $ 8,662 28 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Allowance for credit losses The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment. $ in millions SBL C&I loans CRE loans REIT loans Residential mortgage loans Tax-exempt loans Total Three months ended March 31, 2024 Balance at beginning of period $ 7 $ 211 $ 174 $ 17 $ 68 $ 2 $ 479 Provision/(benefit) for credit losses ( 1 ) 8 13 2 ( 1 ) — 21 Net (charge-offs)/recoveries: Charge-offs — ( 25 ) ( 5 ) — — — ( 30 ) Recoveries — 2 — — — — 2 Net (charge-offs)/recoveries — ( 23 ) ( 5 ) — — — ( 28 ) Foreign exchange translation adjustment — — ( 1 ) — — — ( 1 ) Balance at end of period $ 6 $ 196 $ 181 $ 19 $ 67 $ 2 $ 471 Six months ended March 31, 2024 Balance at beginning of period $ 7 $ 214 $ 161 $ 16 $ 74 $ 2 $ 474 Provision/(benefit) for credit losses ( 1 ) 11 27 3 ( 7 ) — 33 Net (charge-offs)/recoveries: Charge-offs — ( 31 ) ( 7 ) — — — ( 38 ) Recoveries — 2 — — — — 2 Net (charge-offs)/recoveries — ( 29 ) ( 7 ) — — — ( 36 ) Foreign exchange translation adjustment — — — — — — — Balance at end of period $ 6 $ 196 $ 181 $ 19 $ 67 $ 2 $ 471 ACL by loan portfolio segment as a % of total ACL 1.3 % 41.7 % 38.4 % 4.0 % 14.2 % 0.4 % 100.0 % Three months ended March 31, 2023 Balance at beginning of period $ 4 $ 222 $ 91 $ 15 $ 74 $ 2 $ 408 Provision/(benefit) for credit losses 1 18 9 — — — 28 Net (charge-offs)/recoveries: Charge-offs — ( 20 ) — — — — ( 20 ) Recoveries — — — — — — — Net (charge-offs)/recoveries — ( 20 ) — — — — ( 20 ) Foreign exchange translation adjustment — ( 1 ) — — — — ( 1 ) Balance at end of period $ 5 $ 219 $ 100 $ 15 $ 74 $ 2 $ 415 Six months ended March 31, 2023 Balance at beginning of period $ 3 $ 226 $ 87 $ 21 $ 57 $ 2 $ 396 Provision/(benefit) for credit losses 2 18 11 ( 6 ) 17 — 42 Net (charge-offs)/recoveries: Charge-offs — ( 24 ) ( 1 ) — — — ( 25 ) Recoveries — — 3 — — — 3 Net (charge-offs)/recoveries — ( 24 ) 2 — — — ( 22 ) Foreign exchange translation adjustment — ( 1 ) — — — — ( 1 ) Balance at end of period $ 5 $ 219 $ 100 $ 15 $ 74 $ 2 $ 415 ACL by loan portfolio segment as a % of total ACL 1.2 % 52.8 % 24.1 % 3.6 % 17.8 % 0.5 % 100.0 % The allowance for credit losses on held for investment bank loans decreased $ 8 million and $ 3 million during the three and six months ended March 31, 2024, respectively, primarily resulting from provisions for credit losses of $ 21 million and $ 33 million, respectively, partially offset by net charge-offs of certain loans during the period. The provision for credit losses for the three and six months ended March 31, 2024 primarily reflected the impacts of specific reserves, loan downgrades and charge-offs in our C&I and CRE loan portfolios, partially offset by the favorable impacts of an improved economic forecast and net loan payments. 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 at both March 31, 2024 and December 31, 2023 and $ 22 million at September 30, 2023. 29 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 8 – LOANS TO FINANCIAL ADVISORS, NET Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 of our 2023 Form 10-K for a discussion of our accounting policies related to loans to financial advisors and the related allowance for credit losses. The following table presents the balances for our loans to financial advisors and the related accrued interest receivable. $ in millions March 31, 2024 September 30, 2023 Affiliated with the firm as of period-end (1) $ 1,212 $ 1,158 No longer affiliated with the firm as of period-end (2) 11 10 Total loans to financial advisors 1,223 1,168 Allowance for credit losses ( 33 ) ( 32 ) Loans to financial advisors, net $ 1,190 $ 1,136 Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”) $ 7 $ 6 Allowance for credit losses as a percent of total loans to financial advisors 2.70 % 2.74 % (1) These loans were predominantly current. (2) These loans were predominantly past due for a period of 180 days or more. NOTE 9 – VARIABLE INTEREST ENTITIES A VIE requires consolidation by the entity’s primary beneficiary. We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. Refer to Note 2 of our 2023 Form 10-K for a discussion of our principal involvement with VIEs and the accounting policies regarding determination of whether we are deemed to be the primary beneficiary of VIEs. VIEs where we are the primary beneficiary Of the VIEs in which we hold an interest, we have determined that certain investments in low-income housing tax credit (“LIHTC”) funds and the trust we utilize in connection with restricted stock unit (“RSU”) awards granted to certain employees of one of our Canadian subsidiaries (the “Restricted Stock Trust Fund”) require consolidation in our financial statements, as we are deemed the primary beneficiary of such VIEs. The aggregate assets and liabilities of the VIEs we consolidate are provided in the following table. Aggregate assets and aggregate liabilities may differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. $ in millions Aggregate assets Aggregate liabilities March 31, 2024 LIHTC funds $ 152 $ 75 Restricted Stock Trust Fund 28 28 Total $ 180 $ 103 September 30, 2023 LIHTC funds $ 51 $ 6 Restricted Stock Trust Fund 20 20 Total $ 71 $ 26 30 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index The following table presents information about the carrying value of the assets and liabilities of the VIEs which we consolidate and which are included on our Condensed Consolidated Statements of Financial Condition. Intercompany balances are eliminated in consolidation and are not reflected in the following table. $ in millions March 31, 2024 September 30, 2023 Assets: Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash $ 14 $ 5 Other assets 138 46 Total assets $ 152 $ 51 Liabilities: Other payables $ 53 $ — Total liabilities $ 53 $ — Noncontrolling interests $ ( 5 ) $ ( 27 ) VIEs where we hold a variable interest but are not the primary beneficiary 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 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. Aggregate assets, liabilities, and risk of loss The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table. March 31, 2024 September 30, 2023 $ in millions Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss LIHTC funds $ 9,026 $ 3,041 $ 67 $ 8,451 $ 2,964 $ 113 Private Equity Interests 2,577 782 99 2,591 655 101 Other 182 70 3 201 84 3 Total $ 11,785 $ 3,893 $ 169 $ 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 2023 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, 2024 evaluation date, evaluating balances as of December 31, 2023. 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. 31 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 11 - OTHER ASSETS 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 March 31, 2024 September 30, 2023 Investments in company-owned life insurance policies $ 1,312 $ 1,110 Property and equipment, net 596 561 Lease right-of-use (“ROU”) assets 538 560 Prepaid expenses 258 209 Investments in FHLB and FRB stock 115 114 Client-owned fractional shares 119 98 All other 264 141 Total other assets $ 3,202 $ 2,793 See Note 13 of our 2023 Form 10-K for additional information regarding our property and equipment and Note 12 of this Form 10-Q and Note 14 of our 2023 Form 10-K for additional information regarding our leases. NOTE 12 – LEASES The following table presents the balances related to our leases on our Condensed Consolidated Statements of Financial Condition. 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 March 31, 2024 September 30, 2023 ROU assets (included in “Other assets”) $ 538 $ 560 Lease liabilities (included in “Other payables”) $ 528 $ 539 Lease liabilities as of March 31, 2024 excluded $ 37 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 March 31, Six months ended March 31, $ in millions 2024 2023 2024 2023 Lease costs $ 34 $ 32 $ 69 $ 63 Variable lease costs $ 10 $ 8 $ 19 $ 15 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. 32 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 13 – 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 held by our bank subsidiaries. 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. March 31, 2024 September 30, 2023 $ in millions Balance Weighted-average rate Balance Weighted-average rate Money market and savings accounts $ 31,094 2.11 % $ 32,268 1.85 % Interest-bearing demand deposits 20,784 4.97 % 18,376 4.98 % Certificates of deposit 2,471 4.68 % 2,831 4.41 % Non-interest-bearing demand deposits 494 — 724 — Total bank deposits $ 54,843 3.32 % $ 54,199 3.06 % Money market and savings accounts in the preceding table included $ 23.41 billion and $ 25.36 billion as of March 31, 2024 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. (“RJ&A”). Such deposits are held in Federal Deposit Insurance Corporation (“FDIC”)-insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”). Total bank deposits in the preceding table included $ 14.54 billion and $ 13.59 billion of deposits as of March 31, 2024 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 end. $ in millions March 31, 2024 September 30, 2023 FDIC-insured bank deposits $ 48,268 $ 48,344 Bank deposits exceeding FDIC insurance limit (1) (2) 6,575 5,855 Total bank deposits $ 54,843 $ 54,199 FDIC-insured bank deposits as a % of total bank deposits 88 % 89 % (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 $ 888 million and $ 764 million as of March 31, 2024 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 March 31, 2024. $ in millions March 31, 2024 Three months or less $ 72 Over three through six months 38 Over six through twelve months 42 Over twelve months 13 Total certificates of deposit that exceeded the FDIC insurance limit (1) $ 165 (1) Total certificates of deposit that exceeded the FDIC insurance limit were calculated in accordance with applicable regulatory reporting requirements. 33 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized in the following table. Three months ended March 31, Six months ended March 31, $ in millions 2024 2023 2024 2023 Money market and savings accounts $ 159 $ 128 $ 315 $ 245 Interest-bearing demand deposits 252 62 495 109 Certificates of deposit 30 16 62 24 Total interest expense on deposits $ 441 $ 206 $ 872 $ 378 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. 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 14 – OTHER BORROWINGS The following table details the components of our other borrowings. March 31, 2024 September 30, 2023 $ in millions Weighted-average interest rate Maturity date Balance Weighted-average interest rate Maturity date Balance FHLB advances: Floating rate - term 5.65 % March 2025 - June 2025 $ 650 5.62 % December 2023 - March 2025 $ 850 Fixed rate 4.77 % June 2024 - December 2028 350 5.70 % December 2023 150 Total FHLB advances 1,000 1,000 Subordinated notes - fixed-to-floating (including an unaccreted premium of $ 1 and $ 2 , respectively) 5.75 % May 2030 99 5.75 % May 2030 100 Unsecured lines of credit 7.07 % Overnight 200 N/A N/A — Total other borrowings $ 1,299 $ 1,100 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. See Note 2 of our 2023 Form 10-K 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 As of March 31, 2024, 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 March 31, 2024 and 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 March 31, 2024, the Variable Rate Facility Fee, which is applied to the committed amount, was 0.125 % per annum. 34 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Other In addition to the Credit Facility, we maintain various secured and unsecured lines of credit, which are generally utilized to finance certain fixed income trading instruments or for cash management purposes. Borrowings during the period were generally day-to-day, and we had $ 200 million outstanding as of March 31, 2024. The interest rates for these arrangements are variable and are based on a daily bank quoted rate, which may reference SOFR, the federal funds rate, a lender’s prime rate, the Canadian prime rate or another commercially available rate, as applicable. For further information on our other borrowing arrangements refer to Note 16 of our 2023 Form 10-K. NOTE 15 – INCOME TAXES The income tax provision for interim periods is comprised of tax on ordinary income provided at the most recent estimated annual effective tax rate, adjusted for the tax effect of discrete items. We estimate the annual effective tax rate quarterly based on the forecasted pre-tax results of our U.S. and non-U.S. operations. Items unrelated to current year ordinary income are recognized entirely in the period identified as a discrete item of tax. These discrete items generally relate to changes in tax laws, adjustments to the actual liability determined upon filing tax returns, excess tax benefits related to share-based compensation and adjustments to previously recorded reserves for uncertain tax positions. For discussion of income tax accounting policies and other income tax related information, see Notes 2 and 18 of our 2023 Form 10-K. Effective tax rate Our effective income tax rate of 21.4 % for the six months ended March 31, 2024 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 period related to nontaxable valuation gains associated with our company-owned life insurance policies, compared to that for the fiscal year 2023, as well as a lower amount of nondeductible fines and penalties compared to fiscal year 2023. 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 $ 6 million due to expiration of statutes of limitations of federal and state tax returns. NOTE 16 – COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments and contingencies Underwriting commitments In the normal course of business, we enter into commitments for debt and equity underwritings. As of March 31, 2024, we had two such open underwriting commitments, which were subsequently settled in open market transactions and did not result in any losses. 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 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. 35 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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 March 31, 2024 September 30, 2023 SBL and other consumer lines of credit $ 41,269 $ 38,791 Commercial lines of credit $ 4,482 $ 4,131 Unfunded lending commitments $ 749 $ 936 Standby letters of credit $ 125 $ 123 SBL and other consumer lines of credit primarily represent the unfunded amounts of bank loans to consumers that are primarily secured by marketable securities or other liquid collateral at advance rates consistent with industry standards. The proceeds from repayment or, if necessary, the liquidation of collateral, which is monitored daily, are expected to satisfy the amounts drawn against these existing lines of credit. These lines of credit are primarily uncommitted, as we reserve the right to not make any advances or may terminate these lines at any time. Because many of 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 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 or continuing their affiliation with us and meeting certain other conditions outlined in their offer. We had unfunded commitments of $ 27 million for loans to financial advisors who have met such conditions as of March 31, 2024. Investment commitments We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $ 61 million as of March 31, 2024. Other commitments Raymond James Affordable Housing Investments, Inc. (“RJAHI”) sells investments in project partnerships to various LIHTC funds, which have third-party investors, and for which RJAHI serves as the managing member or general partner. RJAHI typically sells investments in project partnerships to LIHTC funds within 90 days of their acquisition. Until such investments are sold to LIHTC funds, RJAHI is responsible for funding investment commitments to such partnerships. As of March 31, 2024, RJAHI had committed approximately $ 199 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. RJAHI may also make short-term loans or advances to project partnerships and LIHTC funds. For information regarding our lease commitments see Note 12 of this Form 10-Q and for information on the maturities of our lease liabilities see Note 14 of our 2023 Form 10-K. 36 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Guarantees Our U.S. broker-dealer subsidiaries are required by federal law to be members of the Securities Investors Protection Corporation (“SIPC”). The SIPC fund provides protection up to $ 500 thousand per client for securities and cash held in client accounts, including a limitation of $ 250 thousand on claims for cash balances. We have purchased excess SIPC coverage through various syndicates of Lloyd’s of London. For RJ&A, our clearing broker-dealer, the additional protection currently provided has an aggregate firm limit of $ 750 million for cash and securities, including a sub-limit of $ 1.9 million per client for cash above basic SIPC. Account protection applies when a SIPC member fails financially and is unable to meet its obligations to clients. This coverage does not protect against market fluctuations. RJF has provided an indemnity to Lloyd’s of London against any and all losses they may incur associated with the excess SIPC policies. Legal and regulatory matters contingencies In the normal course of our business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a diversified financial services institution. RJF and certain of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and self-regulatory organizations. Reviews can result in the imposition of sanctions for regulatory violations, ranging from non-monetary censures to fines and, in serious cases, temporary or permanent suspension from conducting business, or limitations on certain business activities. 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. As previously disclosed, the firm has been cooperating with the SEC in connection with an investigation of the firm’s compliance with records preservation requirements relating to business communications sent over electronic messaging channels that have not been approved by the firm. The SEC has reportedly been conducting similar investigations of record preservation practices at other financial institutions. We have reached a settlement in principle with the SEC’s Division of Enforcement to resolve this investigation, which will include the payment of a $ 50 million civil monetary penalty. That amount was accrued within “Other payables” on our Condensed Consolidated Statements of Financial Condition as of March 31, 2024. The settlement is subject to the negotiation of definitive documentation and final approval by the SEC. 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. The level of litigation and investigatory activity (both formal and informal) by government and self-regulatory agencies in the financial services industry continues to be significant. There can be no assurance that material losses will not be incurred from claims that have not yet been asserted or are not yet determined to be material. For many legal and regulatory matters, we are unable to estimate a range of reasonably possible loss as we cannot predict if, how or when such proceedings or investigations will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be. A large number of factors may contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental proceedings, potential fines and penalties); the matters present significant legal uncertainties; we have not engaged in settlement discussions; discovery is not complete; there are significant facts in dispute; and numerous parties are named as defendants (including where it is uncertain how liability might be shared among defendants). Subject to the foregoing, after consultation with counsel, we believe that the outcome of such litigation and regulatory proceedings will not have a material adverse effect on our consolidated financial condition. However, the outcome of such litigation and regulatory proceedings could be material to our operating results and cash flows for a particular future period, depending on, among other things, our revenues or income for such period. There are certain matters for which we are unable to estimate the upper end of the range of reasonably possible loss. With respect to legal and regulatory matters for which management has been able to estimate a range of reasonably possible loss as of March 31, 2024, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $ 30 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. 37 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 17 – SHAREHOLDERS’ EQUITY Preferred stock The following table details the shares outstanding, carrying value, and aggregate liquidation preference of our preferred stock. For further details regarding our preferred stock see Note 20 of our 2023 Form 10-K. $ in millions March 31, 2024 September 30, 2023 6.375 % Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (“Series B Preferred Stock”): Shares outstanding 80,500 80,500 Carrying value $ 79 $ 79 Aggregate liquidation preference $ 81 $ 81 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 and six months ended March 31, 2024 and 2023. We redeemed all outstanding shares of our Series A Preferred Stock on April 3, 2023. Dividends declared Dividends paid $ in millions, except per share amounts Total dividends Per preferred share amount Total dividends Per preferred share amount Three months ended March 31, 2024 Series B Preferred Stock $ 2 $ 15.94 $ 2 $ 15.94 Six months ended March 31, 2024 Series B Preferred Stock $ 3 $ 31.88 $ 3 $ 31.88 Three months ended March 31, 2023 Series A Preferred Stock $ 1 $ 16.88 $ 1 $ 16.88 Series B Preferred Stock 1 $ 15.94 1 $ 15.94 Total $ 2 $ 2 Six months ended March 31, 2023 Series A Preferred Stock $ 2 $ 33.76 $ 2 $ 33.76 Series B Preferred Stock 2 $ 31.88 2 $ 31.88 Total $ 4 $ 4 Common equity The following table presents the changes in our common shares outstanding for the three and six months ended March 31, 2024 and 2023. Three months ended March 31, Six months ended March 31, Shares in millions 2024 2023 2024 2023 Balance beginning of period 208.7 215.0 208.8 215.1 Repurchases of common stock under the Board of Directors’ common stock repurchase authorization ( 1.7 ) ( 3.7 ) ( 3.1 ) ( 5.0 ) Issuances due to vesting of RSUs, employee stock purchases, and exercise of stock options, net of forfeitures 0.3 0.3 1.6 1.5 Balance end of period 207.3 211.6 207.3 211.6 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 20 of this Form 10-Q and Note 23 of our 2023 Form 10-K for additional information on these programs. 38 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Share repurchases 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 March 31, 2024, we repurchased 1.70 million shares of our common stock for $ 207 million at an average price of $ 121.99 per share under the Board of Directors’ common stock repurchase authorization. During the six months ended March 31, 2024, we repurchased 3.10 million shares of our common stock for $ 357 million at an average price of $ 114.96 per share. As of March 31, 2024, $ 1.19 billion remained available under the Board of Directors’ common stock repurchase authorization. Subsequent to March 31, 2024, we repurchased 336 thousand shares, for a cumulative year-to-date repurchase through the date of this Form 10-Q of 3.44 million shares of our common stock for $ 400 million at an average price of $ 116.32 per share. After the effect of those repurchases, $ 1.14 billion remained available under the Board of Directors’ common stock repurchase authorization as of the date of this Form 10-Q. Common stock dividends Dividends per common share declared and paid are detailed in the following table for each respective period. Three months ended March 31, Six months ended March 31, 2024 2023 2024 2023 Dividends per common share - declared $ 0.45 $ 0.42 $ 0.90 $ 0.84 Dividends per common share - paid $ 0.45 $ 0.42 $ 0.87 $ 0.76 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 March 31, Six months ended March 31, 2024 2023 2024 2023 Dividend payout ratio 20.3 % 21.8 % 19.8 % 19.9 % 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 our bank subsidiaries. See Note 21 of this Form 10-Q for additional information on our regulatory capital requirements. 39 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index A ccumulated other comprehensive income/(loss) All of the components of other comprehensive income/(loss) (“OCI”), net of tax, were attributable to RJF. The following table presents the net change in AOCI as well as the changes, and the related tax effects, of each component of AOCI. $ in millions Net investment hedges Currency translations Subtotal: net investment hedges and currency translations Available- for-sale securities Cash flow hedges Total Three months ended March 31, 2024 AOCI as of beginning of period $ 121 $ ( 165 ) $ ( 44 ) $ ( 672 ) $ 23 $ ( 693 ) OCI: OCI before reclassifications and taxes 29 ( 33 ) ( 4 ) ( 34 ) 18 ( 20 ) Amounts reclassified from AOCI, before tax — — — — ( 9 ) ( 9 ) Pre-tax net OCI 29 ( 33 ) ( 4 ) ( 34 ) 9 ( 29 ) Income tax effect ( 7 ) — ( 7 ) 8 ( 3 ) ( 2 ) OCI for the period, net of tax 22 ( 33 ) ( 11 ) ( 26 ) 6 ( 31 ) AOCI as of end of period $ 143 $ ( 198 ) $ ( 55 ) $ ( 698 ) $ 29 $ ( 724 ) Six months ended March 31, 2024 AOCI as of beginning of period $ 143 $ ( 216 ) $ ( 73 ) $ ( 942 ) $ 44 $ ( 971 ) OCI: OCI before reclassifications and taxes — 18 18 324 — 342 Amounts reclassified from AOCI, before tax — — — — ( 19 ) ( 19 ) Pre-tax net OCI — 18 18 324 ( 19 ) 323 Income tax effect — — — ( 80 ) 4 ( 76 ) OCI for the period, net of tax — 18 18 244 ( 15 ) 247 AOCI as of end of period $ 143 $ ( 198 ) $ ( 55 ) $ ( 698 ) $ 29 $ ( 724 ) Three months ended March 31, 2023 AOCI as of beginning of period $ 139 $ ( 216 ) $ ( 77 ) $ ( 855 ) $ 41 $ ( 891 ) OCI: OCI before reclassifications and taxes ( 4 ) 11 7 126 ( 7 ) 126 Amounts reclassified from AOCI, before tax — — — — ( 8 ) ( 8 ) Pre-tax net OCI ( 4 ) 11 7 126 ( 15 ) 118 Income tax effect 1 ( 1 ) — ( 29 ) 4 ( 25 ) OCI for the period, net of tax ( 3 ) 10 7 97 ( 11 ) 93 AOCI as of end of period $ 136 $ ( 206 ) $ ( 70 ) $ ( 758 ) $ 30 $ ( 798 ) Six months ended March 31, 2023 AOCI as of beginning of period $ 153 $ ( 276 ) $ ( 123 ) $ ( 902 ) $ 43 $ ( 982 ) OCI: OCI before reclassifications and taxes ( 23 ) 71 48 211 ( 5 ) 254 Amounts reclassified from AOCI, before tax — — — — ( 13 ) ( 13 ) Pre-tax net OCI ( 23 ) 71 48 211 ( 18 ) 241 Income tax effect 6 ( 1 ) 5 ( 67 ) 5 ( 57 ) OCI for the period, net of tax ( 17 ) 70 53 144 ( 13 ) 184 AOCI as of end of period $ 136 $ ( 206 ) $ ( 70 ) $ ( 758 ) $ 30 $ ( 798 ) Reclassifications from AOCI to net income, excluding taxes, for the three and six months ended March 31, 2024 and 2023 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. For further information about our significant accounting policies related to derivatives, see Note 2 of our 2023 Form 10-K. In addition, see Note 5 of this Form 10-Q for additional information on these derivatives. 40 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 18 – REVENUES The following tables present our sources of revenues by segment. 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 2023 Form 10-K and Note 23 of this Form 10-Q for additional information on our segments. Three months ended March 31, 2024 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 1,283 $ 1 $ 242 $ — $ ( 10 ) $ 1,516 Brokerage revenues: Securities commissions: Mutual and other fund products 141 1 1 — — 143 Insurance and annuity products 127 — — — — 127 Equities, exchange-traded funds (“ETFs”) and fixed income products 113 35 — — ( 4 ) 144 Subtotal securities commissions 381 36 1 — ( 4 ) 414 Principal transactions (1) 26 86 — 2 — 114 Total brokerage revenues 407 122 1 2 ( 4 ) 528 Account and service fees: Mutual fund and annuity service fees 115 — 4 — — 119 RJBDP fees 366 2 — — ( 208 ) 160 Client account and other fees 64 1 1 — ( 10 ) 56 Total account and service fees 545 3 5 — ( 218 ) 335 Investment banking: Merger & acquisition and advisory — 107 — — — 107 Equity underwriting 8 23 — — — 31 Debt underwriting — 41 — — — 41 Total investment banking 8 171 — — — 179 Other: Affordable housing investments business revenues — 22 — — — 22 All other (1) 6 — 1 9 ( 7 ) 9 Total other 6 22 1 9 ( 7 ) 31 Total non-interest revenues 2,249 319 249 11 ( 239 ) 2,589 Interest income (1) 122 26 3 868 30 1,049 Total revenues 2,371 345 252 879 ( 209 ) 3,638 Interest expense ( 30 ) ( 24 ) — ( 455 ) ( 11 ) ( 520 ) Net revenues $ 2,341 $ 321 $ 252 $ 424 $ ( 220 ) $ 3,118 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. 41 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Three months ended March 31, 2023 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 1,102 $ — $ 206 $ — $ ( 6 ) $ 1,302 Brokerage revenues: Securities commissions: Mutual and other fund products 135 2 1 — ( 1 ) 137 Insurance and annuity products 113 — — — — 113 Equities, ETFs and fixed income products 88 32 — — ( 1 ) 119 Subtotal securities commissions 336 34 1 — ( 2 ) 369 Principal transactions (1) 28 96 — 4 ( 1 ) 127 Total brokerage revenues 364 130 1 4 ( 3 ) 496 Account and service fees: Mutual fund and annuity service fees 105 — 1 — ( 1 ) 105 RJBDP fees 411 1 — — ( 312 ) 100 Client account and other fees 56 1 5 — ( 9 ) 53 Total account and service fees 572 2 6 — ( 322 ) 258 Investment banking: Merger & acquisition and advisory — 87 — — — 87 Equity underwriting 9 29 — — — 38 Debt underwriting — 29 — — — 29 Total investment banking 9 145 — — — 154 Other: Affordable housing investments business revenues — 23 — — — 23 All other (1) 9 1 — 6 ( 7 ) 9 Total other 9 24 — 6 ( 7 ) 32 Total non-interest revenues 2,056 301 213 10 ( 338 ) 2,242 Interest income (1) 117 21 3 749 25 915 Total revenues 2,173 322 216 759 ( 313 ) 3,157 Interest expense ( 29 ) ( 20 ) — ( 219 ) ( 16 ) ( 284 ) Net revenues $ 2,144 $ 302 $ 216 $ 540 $ ( 329 ) $ 2,873 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. 42 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Six months ended March 31, 2024 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 2,474 $ 1 $ 466 $ — $ ( 18 ) $ 2,923 Brokerage revenues: Securities commissions: Mutual and other fund products 277 3 3 — ( 3 ) 280 Insurance and annuity products 252 — — — — 252 Equities, ETFs and fixed income products 202 68 — — ( 5 ) 265 Subtotal securities commissions 731 71 3 — ( 8 ) 797 Principal transactions (1) 58 191 — 4 — 253 Total brokerage revenues 789 262 3 4 ( 8 ) 1,050 Account and service fees: Mutual fund and annuity service fees 221 — 5 — ( 1 ) 225 RJBDP fees 741 3 — — ( 432 ) 312 Client account and other fees 129 3 6 — ( 21 ) 117 Total account and service fees 1,091 6 11 — ( 454 ) 654 Investment banking: Merger & acquisition and advisory — 225 — — — 225 Equity underwriting 19 49 — — — 68 Debt underwriting — 67 — — — 67 Total investment banking 19 341 — — — 360 Other: Affordable housing investments business revenues — 45 — — — 45 All other (1) 10 1 1 22 ( 10 ) 24 Total other 10 46 1 22 ( 10 ) 69 Total non-interest revenues 4,383 656 481 26 ( 490 ) 5,056 Interest income (1) 240 49 6 1,740 67 2,102 Total revenues 4,623 705 487 1,766 ( 423 ) 7,158 Interest expense ( 56 ) ( 46 ) — ( 901 ) ( 24 ) ( 1,027 ) Net revenues $ 4,567 $ 659 $ 487 $ 865 $ ( 447 ) $ 6,131 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. 43 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Six months ended March 31, 2023 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 2,155 $ 1 $ 403 $ — $ ( 15 ) $ 2,544 Brokerage revenues: Securities commissions: Mutual and other fund products 263 3 2 — ( 1 ) 267 Insurance and annuity products 217 — — — — 217 Equities, ETFs and fixed income products 173 65 — — ( 1 ) 237 Subtotal securities commissions 653 68 2 — ( 2 ) 721 Principal transactions (1) 56 196 — 8 ( 1 ) 259 Total brokerage revenues 709 264 2 8 ( 3 ) 980 Account and service fees: Mutual fund and annuity service fees 203 — 1 — ( 1 ) 203 RJBDP fees 816 2 — — ( 581 ) 237 Client account and other fees 116 3 10 — ( 22 ) 107 Total account and service fees 1,135 5 11 — ( 604 ) 547 Investment banking: Merger & acquisition and advisory — 189 — — — 189 Equity underwriting 18 44 — — ( 1 ) 61 Debt underwriting — 45 — — — 45 Total investment banking 18 278 — — ( 1 ) 295 Other: Affordable housing investments business revenues — 47 — — — 47 All other (1) 15 1 2 19 ( 8 ) 29 Total other 15 48 2 19 ( 8 ) 76 Total non-interest revenues 4,032 596 418 27 ( 631 ) 4,442 Interest income (1) 226 44 5 1,425 42 1,742 Total revenues 4,258 640 423 1,452 ( 589 ) 6,184 Interest expense ( 51 ) ( 43 ) — ( 404 ) ( 27 ) ( 525 ) Net revenues $ 4,207 $ 597 $ 423 $ 1,048 $ ( 616 ) $ 5,659 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. At March 31, 2024 and September 30, 2023, net receivables related to contracts with customers were $ 576 million and $ 519 million, respectively. 44 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 19 – INTEREST INCOME AND INTEREST EXPENSE The following table details the components of interest income and interest expense. Three months ended March 31, Six months ended March 31, $ in millions 2024 2023 2024 2023 Interest income: Cash and cash equivalents $ 128 $ 75 $ 260 $ 130 Assets segregated for regulatory purposes and restricted cash 47 55 94 105 Trading assets — debt securities 19 13 34 27 Available-for-sale securities 56 54 112 107 Brokerage client receivables 47 41 92 82 Bank loans, net 727 657 1,461 1,256 All other 25 20 49 35 Total interest income $ 1,049 $ 915 $ 2,102 $ 1,742 Interest expense: Bank deposits $ 441 $ 206 872 $ 378 Trading liabilities — debt securities 11 7 22 17 Brokerage client payables 21 23 41 40 Other borrowings 8 9 16 18 Senior notes payable 23 23 46 46 All other 16 16 30 26 Total interest expense $ 520 $ 284 $ 1,027 $ 525 Net interest income $ 529 $ 631 $ 1,075 $ 1,217 Bank loan provision for credit losses ( 21 ) ( 28 ) ( 33 ) ( 42 ) Net interest income after bank loan provision for credit losses $ 508 $ 603 $ 1,042 $ 1,175 Interest expense related to bank deposits in the preceding table excludes interest expense associated with affiliate deposits, which has been eliminated in consolidation. NOTE 20 – SHARE-BASED COMPENSATION 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. Our share-based compensation accounting policies are described in Note 2 of our 2023 Form 10-K. Other information related to our share-based awards is presented in Note 23 of our 2023 Form 10-K. Restricted stock units During the three and six months ended March 31, 2024, we granted approximately 87 thousand and 1.8 million RSUs, respectively, with a weighted-average grant-date fair value of $ 117.55 and $ 107.21 , respectively, compared with approximately 203 thousand and 2.1 million RSUs granted during the three and six months ended March 31, 2023, respectively, with a weighted-average grant-date fair value of $ 108.39 and $ 116.75 , respectively. For the three and six months ended March 31, 2024, total share-based compensation amortization related to RSUs was $ 53 million and $ 140 million, respectively, compared with $ 54 million and $ 130 million for the three and six months ended March 31, 2023, respectively. As of March 31, 2024, there were $ 377 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the six months ended March 31, 2024. These costs are expected to be recognized over a weighted-average period of three years . 45 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Restricted stock awards Restricted stock awards (“RSAs”) were issued as a component of our total purchase consideration for TriState Capital on June 1, 2022, in accordance with the terms of the acquisition. See Note 23 of our 2023 Form 10-K for further discussion of these awards. For the three and six months ended March 31, 2024 total share-based compensation amortization related to these RSAs was $ 2 million and $ 4 million, respectively, compared with $ 2 million and $ 5 million for the three and six months ended March 31, 2023, respectively. As of March 31, 2024, there were $ 8 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 21 – REGULATORY CAPITAL REQUIREMENTS RJF, as a bank holding company and financial holding company, as well as Raymond James Bank, TriState Capital Bank, our broker-dealer subsidiaries and our trust subsidiaries are subject to capital requirements by various regulatory authorities. Capital levels of each entity are monitored to ensure compliance with our various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial results. As a bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHC Act”), that has made an election to be a financial holding company, RJF is subject to supervision, examination, and regulation by the Board of Governors of the Federal Reserve System (“the Fed”). We are subject to the Fed’s capital rules which establish an integrated regulatory capital framework and implement, in the U.S., the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. We apply the standardized approach for calculating risk-weighted assets and are also subject to the market risk provisions of the Fed’s capital rules (“market risk rule”). Under these rules, minimum requirements are established for both the quantity and quality of capital held by banking organizations. RJF, Raymond James Bank, and TriState Capital Bank are required to maintain minimum leverage ratios (defined as tier 1 capital divided by adjusted average assets), as well as minimum ratios of tier 1 capital, common equity tier 1 (“CET1”), and total capital to risk-weighted assets. These capital ratios incorporate quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under the regulatory capital rules and are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. We calculate these ratios in order to assess compliance with both regulatory requirements and internal capital policies. In order to maintain our ability to take certain capital actions, including dividends and common equity repurchases, and to make bonus payments, we must hold a capital conservation buffer above our minimum risk-based capital requirements. As of March 31, 2024, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirements 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. 46 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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. Actual Requirement for capital adequacy purposes To be well-capitalized under regulatory provisions $ in millions Amount Ratio Amount Ratio Amount Ratio RJF as of March 31, 2024: Tier 1 leverage $ 9,875 12.3 % $ 3,214 4.0 % $ 4,018 5.0 % Tier 1 capital $ 9,875 21.9 % $ 2,703 6.0 % $ 3,604 8.0 % CET1 $ 9,799 21.8 % $ 2,027 4.5 % $ 2,928 6.5 % Total capital $ 10,499 23.3 % $ 3,604 8.0 % $ 4,505 10.0 % RJF as of September 30, 2023: Tier 1 leverage $ 9,321 11.9 % $ 3,123 4.0 % $ 3,904 5.0 % Tier 1 capital $ 9,321 21.4 % $ 2,613 6.0 % $ 3,484 8.0 % CET1 $ 9,245 21.2 % $ 1,960 4.5 % $ 2,831 6.5 % Total capital $ 9,934 22.8 % $ 3,484 8.0 % $ 4,355 10.0 % As of March 31, 2024, 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 increases in our company-owned life insurance policies, as well as brokerage client receivables and other receivables. RJF’s Tier 1 leverage ratio at March 31, 2024 increased compared to September 30, 2023 due to the increase in regulatory capital, which was partially offset by higher average assets, primarily driven by increases in cash, bank loans, and the aforementioned company-owned life insurance policies and receivables. 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. Our intention is to maintain Raymond James Bank’s and TriState Capital Bank’s “well-capitalized” status. In the unlikely event that Raymond James Bank or TriState Capital Bank failed to maintain their “well-capitalized” status, the consequences could include a requirement to obtain a waiver from the FDIC prior to acceptance, renewal, or rollover of brokered deposits and result in higher FDIC premiums, but would not significantly impact our operations. Actual Requirement for capital adequacy purposes To be well-capitalized under regulatory provisions $ in millions Amount Ratio Amount Ratio Amount Ratio Raymond James Bank as of March 31, 2024: Tier 1 leverage $ 3,374 8.0 % $ 1,677 4.0 % $ 2,096 5.0 % Tier 1 capital $ 3,374 14.0 % $ 1,445 6.0 % $ 1,927 8.0 % CET1 $ 3,374 14.0 % $ 1,084 4.5 % $ 1,566 6.5 % Total capital $ 3,677 15.3 % $ 1,927 8.0 % $ 2,409 10.0 % Raymond James Bank as of September 30, 2023: Tier 1 leverage $ 3,355 7.8 % $ 1,710 4.0 % $ 2,137 5.0 % Tier 1 capital $ 3,355 13.7 % $ 1,465 6.0 % $ 1,954 8.0 % CET1 $ 3,355 13.7 % $ 1,099 4.5 % $ 1,587 6.5 % Total capital $ 3,662 15.0 % $ 1,954 8.0 % $ 2,442 10.0 % TriState Capital Bank as of March 31, 2024: Tier 1 leverage $ 1,417 7.2 % $ 789 4.0 % $ 986 5.0 % Tier 1 capital $ 1,417 16.4 % $ 517 6.0 % $ 689 8.0 % CET1 $ 1,417 16.4 % $ 388 4.5 % $ 560 6.5 % Total capital $ 1,467 17.0 % $ 689 8.0 % $ 862 10.0 % TriState Capital Bank as of September 30, 2023: Tier 1 leverage $ 1,290 7.2 % $ 721 4.0 % $ 902 5.0 % Tier 1 capital $ 1,290 14.8 % $ 524 6.0 % $ 699 8.0 % CET1 $ 1,290 14.8 % $ 393 4.5 % $ 568 6.5 % Total capital $ 1,333 15.3 % $ 699 8.0 % $ 874 10.0 % 47 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Our bank subsidiaries may pay dividends to RJF without prior approval of their 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 March 31, 2024 September 30, 2023 Raymond James & Associates, Inc. : (Alternative Method elected) Net capital as a percent of aggregate debit items 33.5 % 43.3 % Net capital $ 993 $ 1,035 Less: required net capital ( 59 ) ( 48 ) Excess net capital $ 934 $ 987 As of March 31, 2024, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements. NOTE 22 – EARNINGS PER SHARE The following table presents the computation of basic and diluted earnings per common share. Three months ended March 31, Six months ended March 31, in millions, except per share amounts 2024 2023 2024 2023 Income for basic earnings per common share: Net income available to common shareholders $ 474 $ 425 $ 971 $ 932 Less allocation of earnings and dividends to participating securities ( 1 ) ( 2 ) ( 2 ) ( 3 ) Net income available to common shareholders after participating securities $ 473 $ 423 $ 969 $ 929 Income for diluted earnings per common share: Net income available to common shareholders $ 474 $ 425 $ 971 $ 932 Less allocation of earnings and dividends to participating securities ( 1 ) ( 2 ) ( 2 ) ( 3 ) Net income available to common shareholders after participating securities $ 473 $ 423 $ 969 $ 929 Common shares: Average common shares in basic computation 208.3 214.3 208.4 214.5 Dilutive effect of outstanding stock options and certain RSUs 5.1 4.9 5.1 5.2 Average common and common equivalent shares used in diluted computation 213.4 219.2 213.5 219.7 Earnings per common share: Basic $ 2.27 $ 1.97 $ 4.65 $ 4.33 Diluted $ 2.22 $ 1.93 $ 4.54 $ 4.23 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive — 1.6 0.1 1.3 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 and six months ended March 31, 2024 and 2023. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. 48 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 23 – SEGMENT INFORMATION We currently operate through the following five segments: PCG; Capital Markets; Asset Management; Bank; and Other. The segments are determined based upon factors such as the services provided and the distribution channels served and are consistent with how we assess performance and determine how to allocate our resources. For a further discussion of our segments, see Note 26 of our 2023 Form 10-K. The following table presents information concerning operations in these segments. Three months ended March 31, Six months ended March 31, $ in millions 2024 2023 2024 2023 Net revenues: Private Client Group $ 2,341 $ 2,144 $ 4,567 $ 4,207 Capital Markets 321 302 659 597 Asset Management 252 216 487 423 Bank 424 540 865 1,048 Other 17 10 43 19 Intersegment eliminations ( 237 ) ( 339 ) ( 490 ) ( 635 ) Total net revenues $ 3,118 $ 2,873 $ 6,131 $ 5,659 Pre-tax income/(loss): Private Client Group $ 444 $ 441 $ 883 $ 875 Capital Markets ( 17 ) ( 34 ) ( 14 ) ( 50 ) Asset Management 100 82 193 162 Bank 75 91 167 227 Other 7 ( 23 ) 10 ( 5 ) Total pre-tax income $ 609 $ 557 $ 1,239 $ 1,209 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 March 31, Six months ended March 31, $ in millions 2024 2023 2024 2023 Net interest income: Private Client Group $ 92 $ 88 $ 184 $ 175 Capital Markets 2 1 3 1 Asset Management 3 3 6 5 Bank 413 530 839 1,021 Other 19 9 43 15 Net interest income $ 529 $ 631 $ 1,075 $ 1,217 The following table presents our total assets on a segment basis. $ in millions March 31, 2024 September 30, 2023 Total assets: Private Client Group $ 13,194 $ 12,375 Capital Markets 3,601 3,087 Asset Management 555 567 Bank 61,038 60,041 Other 2,844 2,290 Total $ 81,232 $ 78,360 49 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index The following table presents goodwill, which was included in our total assets, on a segment basis. $ in millions March 31, 2024 September 30, 2023 Goodwill: Private Client Group $ 569 $ 564 Capital Markets 275 275 Asset Management 69 69 Bank 529 529 Total $ 1,442 $ 1,437 We have operations in the U.S., Canada, and Europe. 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 March 31, Six months ended March 31, $ in millions 2024 2023 2024 2023 Net revenues: U.S. $ 2,846 $ 2,627 $ 5,607 $ 5,167 Canada 155 144 294 278 Europe 117 102 230 214 Total net revenues $ 3,118 $ 2,873 $ 6,131 $ 5,659 Pre-tax income/(loss): U.S. $ 581 $ 524 $ 1,186 $ 1,133 Canada 37 36 64 67 Europe ( 9 ) ( 3 ) ( 11 ) 9 Total pre-tax income $ 609 $ 557 $ 1,239 $ 1,209 The following table presents our total assets by major geographic area in which they were held. $ in millions March 31, 2024 September 30, 2023 Total assets: U.S. $ 75,338 $ 72,506 Canada 3,379 3,404 Europe 2,515 2,450 Total $ 81,232 $ 78,360 The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held. $ in millions March 31, 2024 September 30, 2023 Goodwill: U.S. $ 1,250 $ 1,250 Canada 25 25 Europe 167 162 Total $ 1,442 $ 1,437 50 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Index