What changed in this filing

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Item 1. Financial Statements

2024-08-06 compared with 2024-05-07 · 211 added, 196 removed, 1715 unchanged (19% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

$ in millions, except per share amounts March 31, 2024 September 30, 2023

$ in millions, except per share amounts June 30, 2024 September 30, 2023

Cash and cash equivalents $ 9,095 $ 9,313

32 unchanged sentences

650,000,000 shares authorized;

249,799,231 shares issued and 207,318,494 shares outstanding as of March 31, 2024;

249,886,619 shares issued and 205,573,733 shares outstanding as of June 30, 2024;

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

2 unchanged sentences

Treasury stock, at cost;

42,480,737 and 39,959,710 common shares as of March 31, 2024 and September 30, 2023, respectively

44,312,886 and 39,959,710 common shares as of June 30, 2024 and September 30, 2023, respectively

( 2,773 ) ( 2,252 )

9 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

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

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

in millions, except per share amounts

10 unchanged sentences

1,057 987 3,159 2,729

51 57 120 133

Total revenues

14 unchanged sentences

Investment sub-advisory fees

48 40 132 110

Professional fees

Bank loan provision for credit losses 21 28 33 42

38 35 103 105

Bank loan provision/(benefit) for credit losses

( 10 ) 54 23 96

105 158 270 334

Total non-compensation expenses 494 570 1,422 1,464

29 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

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

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

$ in millions, except per share amounts 2024 2023 2024 2023

2 unchanged sentences

$ 79 $ 120 $ 79 $ 120

Share issuances

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

Balance end of period

79 120 79 120

Common stock, par value $ .01 per share:

22 unchanged sentences

( 2,547 ) ( 1,954 ) ( 2,252 ) ( 1,512 )

Purchases/surrenders

( 246 ) ( 305 ) ( 618 ) ( 810 )

2 unchanged sentences

( 2,773 ) ( 2,259 ) ( 2,773 ) ( 2,259 )

Accumulated other comprehensive loss:

Accumulated other comprehensive income/(loss):

Balance beginning of period

9 unchanged sentences

$ ( 5 ) $ ( 26 ) $ ( 27 ) $ ( 26 )

Consolidations and other

Net loss attributable to noncontrolling interests

— ( 1 ) — ( 1 )

Other net changes in noncontrolling interests

Balance end of period

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended March 31,

Nine months ended June 30,

$ in millions 2024 2023

Cash flows from operating activities:

$ 1,466 $ 1,305

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

27 unchanged sentences

( 155 ) ( 122 )

Purchases of Federal Reserve Bank and Federal Home Loan Bank stock, net ( 1 ) ( 35 )

Sales of Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) stock, net

Investment in solar tax credit equity investment ( 15 ) —

1 unchanged sentence

Other investing activities, net ( 69 ) ( 61 )

Net cash used in investing activities ( 109 ) ( 319 )

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended March 31,

$ in millions 2024 2023

Net cash provided by/(used in) investing activities

Cash flows from financing activities:

4 unchanged sentences

Exercise of stock options and employee stock purchases 37 37

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 —

Redemption of preferred stock — ( 40 )

Proceeds from FHLB advances

Repayments of FHLB advances and other borrowed funds

( 1,350 ) ( 2,741 )

Other financing, net ( 2 ) ( 2 )

Net cash provided by financing activities 266 2,522

Net cash provided by/(used in) financing activities

( 756 ) 1,089

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine months ended June 30,

$ in millions 2024 2023

Currency adjustment:

18 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

June 30, 2024

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

23 unchanged sentences

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.

During the three and nine months ended June 30, 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

17 unchanged sentences

$ in millions Level 1 Level 2 Level 3 Netting

adjustments Balance as of March 31, 2024

adjustments Balance as of June 30, 2024

Assets at fair value on a recurring basis:

12 unchanged sentences

946 7,584 — — 8,530

Derivative assets:

Interest rate

Derivative assets - interest rate

2 398 — ( 315 ) 85

Foreign exchange — 1 — — 1

Total derivative assets 4 404 — ( 202 ) 206

All other investments:

84 unchanged sentences

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

Three months ended March 31, 2024

Three months ended June 30, 2024

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Other investments Derivative liabilities

$ in millions Other All other Other

Financial assets

Trading assets Other investments

$ in millions Other All other

Fair value beginning of period

6 unchanged sentences

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

Nine months ended June 30, 2024

Level 3 instruments at fair value

Financial assets Financial liabilities

Trading assets Other investments Derivative liabilities

$ in millions Other All other Other

Financial assets

Trading assets Other investments

$ in millions Other All other

Fair value beginning of period

6 unchanged sentences

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

$ — $ ( 1 ) $ —

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three months ended March 31, 2023

Three months ended June 30, 2023

Level 3 instruments at fair value

12 unchanged sentences

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

Nine months ended June 30, 2023

Level 3 instruments at fair value

14 unchanged sentences

$ 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.

As of June 30, 2024, 13 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis.

In comparison, as of September 30, 2023, 14 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis.

As of both June 30, 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

1 unchanged sentence

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

Our private equity portfolio as of March 31, 2024 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments.

Our private equity portfolio as of June 30, 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.

5 unchanged sentences

$ in millions Recorded value Unfunded commitment

March 31, 2024

June 30, 2024

Private equity investments measured at NAV $ 101 $ 26

11 unchanged sentences

(weighted-average)

March 31, 2024

June 30, 2024

Residential mortgage loans $ 2 $ 8 $ 10 Collateral or

20 unchanged sentences

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

The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value on the Condensed Consolidated Statements of Financial Condition at March 31, 2024 and September 30, 2023.

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

1 unchanged sentence

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

March 31, 2024

June 30, 2024

Financial assets:

23 unchanged sentences

unrealized losses Fair value

March 31, 2024

June 30, 2024

Agency residential MBS $ 4,344 $ — $ ( 471 ) $ 3,873

17 unchanged sentences

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

The amortized costs and fair values in the preceding table exclude $ 28 million 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”).

The amortized costs and fair values in the preceding table exclude $ 28 million of accrued interest on available-for-sale securities as of both June 30, 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 FHLB and FRB.

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

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

As a result, the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 4.0 years as of June 30, 2024.

June 30, 2024

$ in millions Within one year After one but

60 unchanged sentences

losses Fair value Unrealized

March 31, 2024

June 30, 2024

Agency residential MBS

21 unchanged sentences

$ 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.

At June 30, 2024, of the 1,000 available-for-sale securities in an unrealized loss position, 17 were in a continuous unrealized loss position for less than 12 months and 983 securities were in a continuous unrealized loss position for greater than 12 months.

At June 30, 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 $ 4.36 billion and $ 2.66 billion, respectively, and fair values of $ 3.86 billion and $ 2.33 billion, respectively.

During the three and nine months ended June 30, 2024 and 2023, there were no sales of available-for-sale securities.

RAYMOND JAMES FINANCIAL, INC.

7 unchanged sentences

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

March 31, 2024 September 30, 2023

June 30, 2024 September 30, 2023

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

27 unchanged sentences

(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.

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

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

See Note 17 for additional information.

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

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

$ in millions 2024 2023 2024 2023

3 unchanged sentences

$ 8 $ ( 4 ) $ ( 7 ) $ ( 34 )

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.

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three and nine months ended June 30, 2024 and 2023.

We expect to reclassify $ 28 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 .

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

RAYMOND JAMES FINANCIAL, INC.

3 unchanged sentences

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,

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

Location of gain/(loss) 2024 2023 2024 2023

16 unchanged sentences

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

The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that were in a liability position was $ 2 million as of March 31, 2024 and $ 3 million as of September 30, 2023.

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 June 30, 2024 and $ 3 million as of September 30, 2023.

RAYMOND JAMES FINANCIAL, INC.

11 unchanged sentences

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

March 31, 2024

June 30, 2024

Gross amounts of recognized assets/liabilities $ 311 $ 259 $ 570 $ 374 $ 780 $ 1,154

13 unchanged sentences

Such secured borrowings have no stated maturity and are generally overnight and continuous.

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

Repurchase agreements:

13 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

Collateral we received that was available to be delivered or repledged $ 3,428 $ 3,267

3 unchanged sentences

The following table presents information about our assets that have been pledged for such purposes.

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

Had the right to deliver or repledge $ 1,217 $ 1,091

6 unchanged sentences

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

$ in millions June 30, 2024 September 30, 2023

Assets pledged with the FHLB or FRB:

15 unchanged sentences

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

$ in millions June 30, 2024 September 30, 2023

SBL $ 15,429 $ 14,606

12 unchanged sentences

Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 211 $ 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.

(1) Bank loans, net as of June 30, 2024 and September 30, 2023 are presented net of $ 8 million and $ 52 million, respectively, of net unamortized discounts, unearned income, and deferred loan fees and costs, which included $ 51 million and $ 84 million, respectively, of net unamortized discounts that arose from the acquisition date fair value purchase discount on bank loans acquired in the TriState Capital Holdings, Inc.

(“TriState Capital”) acquisition.

2 unchanged sentences

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.

We originated or purchased $ 856 million and $ 1.85 billion of loans held for sale during the three and nine months ended June 30, 2024, respectively, and $ 699 million and $ 2.13 billion during the three and nine months ended June 30, 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.

Proceeds from the sales of these loans held for sale and not securitized amounted to $ 200 million and $ 443 million during the three and nine months ended June 30, 2024, respectively, and $ 221 million and $ 574 million during the three and nine months ended June 30, 2023, respectively.

Net gains resulting from such sales were insignificant for each of the three and nine months ended June 30, 2024 and 2023.

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

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

Three months ended March 31, 2024

Three months ended June 30, 2024

Purchases $ 218 $ — $ 5 $ 112 $ 335

Sales $ 159 $ — $ — $ — $ 159

Six months ended March 31, 2024

Nine months ended June 30, 2024

Purchases $ 738 $ — $ 5 $ 234 $ 977

Sales $ 322 $ — $ 9 $ — $ 331

Three months ended March 31, 2023

Three months ended June 30, 2023

Purchases $ 3 $ — $ — $ 94 $ 97

Sales $ 441 $ — $ — $ — $ 441

Six months ended March 31, 2023

Nine months ended June 30, 2023

Purchases $ 360 $ 39 $ 24 $ 394 $ 817

5 unchanged sentences

$ 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

June 30, 2024

SBL $ 8 $ 2 $ 10 $ — $ — $ 15,419 $ 15,429

13 unchanged sentences

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.

The preceding table includes $ 56 million and $ 96 million at June 30, 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.

7 unchanged sentences

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.

Loans to borrowers experiencing financial difficulty which were modified during the three and nine months ended June 30, 2024 were not significant.

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

2 unchanged sentences

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.

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both June 30, 2024 and September 30, 2023.

Collateral-dependent loans

2 unchanged sentences

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

$ in millions Nature of collateral June 30, 2024 September 30, 2023

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

1 unchanged sentence

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.

CRE collateral dependent loans as of June 30, 2024 included certain loans that were placed on nonaccrual status with an associated allowance during the nine months ended June 30, 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 $ 2 million and $ 4 million as of June 30, 2024 and September 30, 2023, respectively.

Credit quality indicators

16 unchanged sentences

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

As of and for the six months ended March 31, 2024

As of and for the nine months ended June 30, 2024

Loans by origination fiscal year

46 unchanged sentences

$ — $ — $ — $ — $ — $ — $ — $ —

(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.

(1) As of June 30, 2024, these balances relate to loans which were collateralized by private securities or other financial instruments with a limited trading market.

RAYMOND JAMES FINANCIAL, INC.

45 unchanged sentences

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

March 31, 2024

June 30, 2024

Loans by origination fiscal year

27 unchanged sentences

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

Three months ended March 31, 2024

Three months ended June 30, 2024

Balance at beginning of period

10 unchanged sentences

$ 5 $ 170 $ 197 $ 20 $ 62 $ 2 $ 456

Six months ended March 31, 2024

Nine months ended June 30, 2024

Balance at beginning of period

11 unchanged sentences

ACL by loan portfolio segment as a % of total ACL 1.1 % 37.3 % 43.2 % 4.4 % 13.6 % 0.4 % 100.0 %

Three months ended March 31, 2023

Three months ended June 30, 2023

Balance at beginning of period

9 unchanged sentences

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

Six months ended March 31, 2023

Nine months ended June 30, 2023

Balance at beginning of period

11 unchanged sentences

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

The allowance for credit losses on held for investment bank loans decreased $ 15 million during the three months ended June 30, 2024, primarily resulting from a bank loan benefit for credit losses of $ 10 million and net charge-offs on certain loans in the current quarter.

The bank loan benefit for credit losses for the three months ended June 30, 2024 primarily reflected the positive impacts of net loan repayments, sales, and improved loan grades on the C&I loan portfolio, and an improvement in forecasted home prices on the residential mortgage portfolio, partially offset by the impact of loan downgrades in our CRE portfolio.

The allowance for credit losses on held for investment bank loans decreased $ 18 million during the nine months ended June 30, 2024, primarily resulting from net-charges off during the period, partially offset by the bank loan provision for credit losses of $ 23 million.

The bank loan provision for credit losses for the nine months ended June 30, 2024 primarily reflected the impacts

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

of loan growth, 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, loan repayments, and loan sales.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $ 22 million, $ 20 million, and $ 22 million at June 30, 2024, March 31, 2024, and September 30, 2023, respectively.

NOTE 8 – LOANS TO FINANCIAL ADVISORS, NET

2 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

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

18 unchanged sentences

$ in millions Aggregate assets Aggregate liabilities

March 31, 2024

June 30, 2024

Restricted Stock Trust Fund

8 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash $ 15 $ 5

10 unchanged sentences

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

March 31, 2024 September 30, 2023

June 30, 2024 September 30, 2023

$ in millions Aggregate

25 unchanged sentences

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

$ in millions June 30, 2024 September 30, 2023

Investments in company-owned life insurance policies $ 1,330 $ 1,110

10 unchanged sentences

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

$ in millions June 30, 2024 September 30, 2023

ROU assets (included in “Other assets”)

Lease liabilities (included in “Other payables”)

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 liabilities as of June 30, 2024 excluded $ 17 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 three to eight 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,

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

$ in millions 2024 2023 2024 2023

9 unchanged sentences

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

June 30, 2024 September 30, 2023

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

4 unchanged sentences

Total bank deposits $ 54,401 3.39 % $ 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.

Money market and savings accounts in the preceding table included $ 23.37 billion and $ 25.36 billion as of June 30, 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.

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.

Total bank deposits in the preceding table included $ 14.04 billion and $ 13.59 billion of deposits as of June 30, 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

$ in millions June 30, 2024 September 30, 2023

FDIC-insured bank deposits $ 48,167 $ 48,344

3 unchanged sentences

(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

(2) Excluded affiliate deposits exceeding the FDIC insurance limit of $ 962 million and $ 764 million as of June 30, 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 June 30, 2024.

$ in millions June 30, 2024

Three months or less

7 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

The maturities by fiscal year of our certificates of deposit as of June 30, 2024 are presented in the following table.

$ in millions

Remainder of 2024 $ 508

Total certificates of deposit $ 2,562

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

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

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

$ in millions 2024 2023 2024 2023

7 unchanged sentences

The following table details the components of our other borrowings.

March 31, 2024 September 30, 2023

June 30, 2024 September 30, 2023

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

1 unchanged sentence

Floating rate - term

5.65 % 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

5.64 % March 2025 - December 2025 $ 650 5.62 % December 2023 - March 2025 $ 850

Fixed rate 4.62 % September 2024 - December 2028 300 5.70 % December 2023 150

Total FHLB advances 950 1,000

1 unchanged sentence

5.75 % May 2030 99 5.75 % May 2030 100

Unsecured lines of credit

7.07 % Overnight

Total other borrowings $ 1,049 $ 1,100

3 unchanged sentences

Subordinated notes

As of March 31, 2024, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $ 98 million.

As of June 30, 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.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Credit Facility

2 unchanged sentences

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 were no borrowings outstanding on the Credit Facility as of June 30, 2024 or September 30, 2023.

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

Based upon RJF’s credit rating as of March 31, 2024, the Variable Rate Facility Fee, which is applied to the committed amount, was 0.125 % per annum.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Based upon RJF’s credit rating as of June 30, 2024, the Variable Rate Facility Fee, which is applied to the committed amount, was 0.125 % per annum.

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.

Borrowings during the period were generally day-to-day and there were no borrowings outstanding on these arrangements as of June 30, 2024 or September 30, 2023.

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.

7 unchanged sentences

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.

Our effective income tax rate of 22.1 % for the nine months ended June 30, 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 change in the amount of nondeductible fines and penalties compared to fiscal year 2023.

Uncertain tax positions

4 unchanged sentences

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.

As of June 30, 2024, we had no such open underwriting commitments.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Lending commitments and other credit-related financial instruments

2 unchanged sentences

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents our commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding at our Bank segment.

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

SBL and other consumer lines of credit $ 42,523 $ 38,791

15 unchanged sentences

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.

We had unfunded commitments of $ 11 million for loans to financial advisors who have met such conditions as of June 30, 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.

We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $ 80 million as of June 30, 2024.

In July 2024, we entered into an agreement to invest approximately $ 90 million in a renewable energy project expected to qualify for tax credits and other tax benefits.

Of the total investment, $ 18 million was funded upon the closing of the transaction in July 2024, and we expect to fund the remaining $ 72 million in our fiscal 2025 upon the project satisfying certain conditions.

Other commitments

3 unchanged sentences

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.

As of June 30, 2024, RJAHI had committed approximately $ 145 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.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

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.

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

13 unchanged sentences

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.

That amount was accrued within “Other payables” on our Condensed Consolidated Statements of Financial Condition as of June 30, 2024.

The settlement is subject to review 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.

16 unchanged sentences

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.

With respect to legal and regulatory matters for which management has been able to estimate a range of reasonably possible loss as of June 30, 2024, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $ 40 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.

6 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

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

2 unchanged sentences

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

1 unchanged sentence

share amount Total dividends Per preferred

Three months ended March 31, 2024

Three months ended June 30, 2024

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

Six months ended March 31, 2024

Nine months ended June 30, 2024

Series B Preferred Stock $ 4 $ 47.82 $ 4 $ 47.82

Three months ended March 31, 2023

Three months ended June 30, 2023

Series A Preferred Stock (1)

$ — $ — $ 1 $ 16.88

Series B Preferred Stock 1 $ 15.94 1 $ 15.94

Six months ended March 31, 2023

Nine months ended June 30, 2023

Series A Preferred Stock (1)

$ 2 $ 33.76 $ 3 $ 50.64

Series B Preferred Stock 3 $ 47.82 3 $ 47.82

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

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

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,

The following table presents the changes in our common shares outstanding for the three and nine months ended June 30, 2024 and 2023.

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

Shares in millions

16 unchanged sentences

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.

During the three months ended June 30, 2024, we repurchased 2.0 million shares of our common stock for $ 243 million at an average price of $ 121.98 per share under the Board of Directors’ common stock repurchase authorization.

During the nine months ended June 30, 2024, we repurchased 5.1 million shares of our common stock for $ 600 million at an average price of $ 117.71 per share.

As of June 30, 2024, $ 944 million remained available under the Board of Directors’ common stock repurchase authorization.

Common stock dividends

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

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

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

2024 2023 2024 2023

2 unchanged sentences

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,

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

2024 2023 2024 2023

13 unchanged sentences

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

Three months ended March 31, 2024

Three months ended June 30, 2024

AOCI as of beginning of period $ 143 $ ( 198 ) $ ( 55 ) $ ( 698 ) $ 29 $ ( 724 )

5 unchanged sentences

AOCI as of end of period $ 153 $ ( 210 ) $ ( 57 ) $ ( 687 ) $ 27 $ ( 717 )

Six months ended March 31, 2024

Nine months ended June 30, 2024

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

5 unchanged sentences

AOCI as of end of period $ 153 $ ( 210 ) $ ( 57 ) $ ( 687 ) $ 27 $ ( 717 )

Three months ended March 31, 2023

Three months ended June 30, 2023

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

5 unchanged sentences

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

Six months ended March 31, 2023

Nine months ended June 30, 2023

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

5 unchanged sentences

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

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.

Reclassifications from AOCI to net income, excluding taxes, for the three and nine months ended June 30, 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.

8 unchanged sentences

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

Three months ended June 30, 2024

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

34 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

Three months ended March 31, 2023

Three months ended June 30, 2023

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

33 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

Six months ended March 31, 2024

Nine months ended June 30, 2024

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

34 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

Six months ended March 31, 2023

Nine months ended June 30, 2023

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

30 unchanged sentences

(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.

At June 30, 2024 and September 30, 2023, net receivables related to contracts with customers were $ 595 million and $ 519 million, respectively.

RAYMOND JAMES FINANCIAL, INC.

3 unchanged sentences

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

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

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

$ in millions 2024 2023 2024 2023

21 unchanged sentences

Net interest income $ 523 $ 601 $ 1,598 $ 1,818

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

Bank loan provision/(benefit) for credit losses

( 10 ) 54 23 96

Net interest income after bank loan provision/(benefit) for credit losses

$ 533 $ 547 $ 1,575 $ 1,722

Interest expense related to bank deposits in the preceding table excludes interest expense associated with affiliate deposits, which has been eliminated in consolidation.

7 unchanged sentences

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.

During the three and nine months ended June 30, 2024, we granted approximately 90 thousand and 1.9 million RSUs, respectively, with a weighted-average grant-date fair value of $ 125.42 and $ 108.09 , respectively, compared with approximately 47 thousand and 2.1 million RSUs granted during the three and nine months ended June 30, 2023, respectively, with a weighted-average grant-date fair value of $ 90.86 and $ 116.18 , respectively.

For the three and nine months ended June 30, 2024, total share-based compensation amortization related to RSUs was $ 51 million and $ 191 million, respectively, compared with $ 50 million and $ 180 million for the three and nine months ended June 30, 2023, respectively.

As of June 30, 2024, there were $ 337 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the nine months ended June 30, 2024.

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

5 unchanged sentences

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.

For the three and nine months ended June 30, 2024 total share-based compensation amortization related to these RSAs was $ 1 million and $ 5 million, respectively, compared with $ 2 million and $ 7 million for the three and nine months ended June 30, 2023, respectively.

As of June 30, 2024, there were $ 7 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 .

11 unchanged sentences

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.”

As of June 30, 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.

7 unchanged sentences

$ in millions Amount Ratio Amount Ratio Amount Ratio

RJF as of March 31, 2024:

RJF as of June 30, 2024:

Tier 1 leverage $ 10,092 12.7 % $ 3,191 4.0 % $ 3,989 5.0 %

7 unchanged sentences

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.

As of June 30, 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.

The increase in risk-weighted assets was primarily driven by increases in brokerage client receivables, other receivables, and our investments in company-owned life insurance policies.

RJF’s Tier 1 leverage ratio at June 30, 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 average bank loans, brokerage client receivables, other receivables and other assets, including investments in company-owned life insurance policies, partially offset by a decline in our available-for-sale securities portfolio.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

5 unchanged sentences

$ in millions Amount Ratio Amount Ratio Amount Ratio

Raymond James Bank as of March 31, 2024:

Raymond James Bank as of June 30, 2024:

Tier 1 leverage $ 3,392 8.2 % $ 1,654 4.0 % $ 2,068 5.0 %

9 unchanged sentences

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

TriState Capital Bank as of March 31, 2024:

TriState Capital Bank as of June 30, 2024:

Tier 1 leverage $ 1,457 7.4 % $ 792 4.0 % $ 990 5.0 %

11 unchanged sentences

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

2 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

Raymond James & Associates, Inc.

5 unchanged sentences

Excess net capital $ 951 $ 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.

As of June 30, 2024, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

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,

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

in millions, except per share amounts 2024 2023 2024 2023

21 unchanged sentences

The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the period to participating securities, consisting of 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.

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

9 unchanged sentences

The following table presents information concerning operations in these segments.

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

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

$ in millions 2024 2023 2024 2023

20 unchanged sentences

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

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

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

$ in millions 2024 2023 2024 2023

8 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

Total assets:

9 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

Private Client Group $ 569 $ 564

5 unchanged sentences

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,

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

$ in millions 2024 2023 2024 2023

12 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

Total assets:

4 unchanged sentences

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

$ in millions March 31, 2024 September 30, 2023

$ in millions June 30, 2024 September 30, 2023

$ 1,250 $ 1,250

4 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements