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 June 30, 2024 September 30, 2023 Assets: Cash and cash equivalents $ 9,095 $ 9,313 Assets segregated for regulatory purposes and restricted cash 3,641 3,235 Collateralized agreements 570 418 Financial instruments, at fair value: Trading assets ( $ 1,200 and $ 1,062 pledged as collateral) 1,472 1,187 Available-for-sale securities ( $ 11 and $ 22 pledged as collateral) 8,530 9,181 Derivative assets 85 265 Other investments ( $ 6 and $ 7 pledged as collateral) 333 306 Brokerage client receivables, net 2,798 2,525 Other receivables, net 1,933 1,608 Bank loans, net 45,149 43,775 Loans to financial advisors, net 1,258 1,136 Deferred income taxes, net 658 711 Goodwill and identifiable intangible assets, net 1,884 1,907 Other assets 3,222 2,793 Total assets $ 80,628 $ 78,360 Liabilities and shareholders’ equity: Bank deposits $ 54,401 $ 54,199 Collateralized financings 1,154 337 Financial instrument liabilities, at fair value: Trading liabilities 891 716 Derivative liabilities 354 490 Brokerage client payables 5,489 5,447 Accrued compensation, commissions and benefits 1,977 1,914 Other payables 2,084 1,931 Other borrowings 1,049 1,100 Senior notes payable 2,039 2,039 Total liabilities 69,438 68,173 Commitments and contingencies (see Note 16) Shareholders’ equity Preferred stock 79 79 Common stock; $ .01 par value; 650,000,000 shares authorized; 249,886,619 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 2 Additional paid-in capital 3,221 3,143 Retained earnings 11,385 10,213 Treasury stock, at cost; 44,312,886 and 39,959,710 common shares as of June 30, 2024 and September 30, 2023, respectively ( 2,773 ) ( 2,252 ) Accumulated other comprehensive loss ( 717 ) ( 971 ) Total equity attributable to Raymond James Financial, Inc. 11,197 10,214 Noncontrolling interests ( 7 ) ( 27 ) Total shareholders’ equity 11,190 10,187 Total liabilities and shareholders’ equity $ 80,628 $ 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 June 30, Nine months ended June 30, in millions, except per share amounts 2024 2023 2024 2023 Revenues: Asset management and related administrative fees $ 1,611 $ 1,373 $ 4,534 $ 3,917 Brokerage revenues: Securities commissions 416 356 1,213 1,077 Principal transactions 116 105 369 364 Total brokerage revenues 532 461 1,582 1,441 Account and service fees 328 264 982 811 Investment banking 183 151 543 446 Interest income 1,057 987 3,159 2,729 Other 51 57 120 133 Total revenues 3,762 3,293 10,920 9,477 Interest expense ( 534 ) ( 386 ) ( 1,561 ) ( 911 ) Net revenues 3,228 2,907 9,359 8,566 Non-interest expenses: Compensation, commissions and benefits 2,090 1,851 6,054 5,407 Non-compensation expenses: Communications and information processing 166 149 481 441 Occupancy and equipment 75 68 220 202 Business development 72 66 193 176 Investment sub-advisory fees 48 40 132 110 Professional fees 38 35 103 105 Bank loan provision/(benefit) for credit losses ( 10 ) 54 23 96 Other 105 158 270 334 Total non-compensation expenses 494 570 1,422 1,464 Total non-interest expenses 2,584 2,421 7,476 6,871 Pre-tax income 644 486 1,883 1,695 Provision for income taxes 152 117 417 390 Net income 492 369 1,466 1,305 Preferred stock dividends 1 — 4 4 Net income available to common shareholders $ 491 $ 369 $ 1,462 $ 1,301 Earnings per common share – basic $ 2.37 $ 1.75 $ 7.02 $ 6.09 Earnings per common share – diluted $ 2.31 $ 1.71 $ 6.85 $ 5.95 Weighted-average common shares outstanding – basic 206.8 210.1 207.9 213.0 Weighted-average common and common equivalent shares outstanding – diluted 212.3 214.8 213.1 218.0 Net income $ 492 $ 369 $ 1,466 $ 1,305 Other comprehensive income/(loss), net of tax: Available-for-sale securities 11 ( 76 ) 255 68 Currency translations, net of the impact of net investment hedges ( 2 ) 20 16 73 Cash flow hedges ( 2 ) 12 ( 17 ) ( 1 ) Total other comprehensive income/(loss), net of tax 7 ( 44 ) 254 140 Total comprehensive income $ 499 $ 325 $ 1,720 $ 1,445 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 June 30, Nine months ended June 30, $ in millions, except per share amounts 2024 2023 2024 2023 Preferred stock: Balance beginning of period $ 79 $ 120 $ 79 $ 120 Redemption of preferred stock — ( 41 ) — ( 41 ) Balance end of period 79 79 79 79 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 3,186 3,035 3,143 2,987 Employee stock purchases 10 13 32 35 Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures ( 27 ) — ( 150 ) ( 110 ) Share-based compensation amortization 52 51 196 187 Balance end of period 3,221 3,099 3,221 3,099 Retained earnings: Balance beginning of period 10,988 9,590 10,213 8,843 Net income attributable to Raymond James Financial, Inc. 492 369 1,466 1,305 Common and preferred stock cash dividends declared (see Note 17) ( 95 ) ( 89 ) ( 294 ) ( 278 ) Balance end of period 11,385 9,870 11,385 9,870 Treasury stock: Balance beginning of period ( 2,547 ) ( 1,954 ) ( 2,252 ) ( 1,512 ) Purchases ( 246 ) ( 305 ) ( 618 ) ( 810 ) Reissuances due to vesting of restricted stock units and exercise of stock options 20 — 97 63 Balance end of period ( 2,773 ) ( 2,259 ) ( 2,773 ) ( 2,259 ) Accumulated other comprehensive income/(loss): Balance beginning of period ( 724 ) ( 798 ) ( 971 ) ( 982 ) Other comprehensive income/(loss), net of tax 7 ( 44 ) 254 140 Balance end of period ( 717 ) ( 842 ) ( 717 ) ( 842 ) Total equity attributable to Raymond James Financial, Inc. $ 11,197 $ 9,949 $ 11,197 $ 9,949 Noncontrolling interests: Balance beginning of period $ ( 5 ) $ ( 26 ) $ ( 27 ) $ ( 26 ) Net loss attributable to noncontrolling interests — ( 1 ) — ( 1 ) Other net changes in noncontrolling interests ( 2 ) — 20 — Balance end of period ( 7 ) ( 27 ) ( 7 ) ( 27 ) Total shareholders’ equity $ 11,190 $ 9,922 $ 11,190 $ 9,922 See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). 5 Index RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine months ended June 30, $ in millions 2024 2023 Cash flows from operating activities: Net income $ 1,466 $ 1,305 Adjustments to reconcile net income to net cash provided by/(used in) operating activities: Depreciation and amortization 132 123 Deferred income taxes, net ( 28 ) ( 22 ) Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments ( 30 ) ( 37 ) Provisions for credit losses and legal and regulatory matters, net — 191 Share-based compensation expense 201 192 Unrealized gain on company-owned life insurance policies, net of expenses ( 174 ) ( 125 ) Other 18 ( 1 ) Net change in: Collateralized agreements, net of collateralized financings 664 9 Loans (provided to) financial advisors, net of repayments ( 146 ) 16 Brokerage client receivables and other receivables, net ( 509 ) 456 Trading instruments, net ( 78 ) 62 Derivative instruments, net 35 ( 224 ) Other assets ( 18 ) ( 43 ) Brokerage client payables and other payables 72 ( 5,764 ) Accrued compensation, commissions and benefits 59 ( 95 ) Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale ( 19 ) 9 Net cash provided by/(used in) operating activities 1,645 ( 3,948 ) Cash flows from investing activities: Increase in bank loans, net ( 1,737 ) ( 762 ) Proceeds from sales of loans held for investment 337 600 Purchases of available-for-sale securities ( 397 ) ( 561 ) Available-for-sale securities maturations, repayments and redemptions 1,279 977 Additions to property and equipment ( 155 ) ( 122 ) Sales of Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) stock, net — 3 Investment in solar tax credit equity investment ( 15 ) — Purchases of other investments, net — ( 6 ) Other investing activities, net ( 69 ) ( 61 ) Net cash provided by/(used in) investing activities ( 757 ) 68 Cash flows from financing activities: Increase in bank deposits 202 2,411 Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements ( 655 ) ( 860 ) Dividends on common and preferred stock ( 288 ) ( 266 ) Exercise of stock options and employee stock purchases 37 37 Redemption of preferred stock — ( 40 ) Proceeds from FHLB advances 1,300 2,550 Repayments of FHLB advances and other borrowed funds ( 1,350 ) ( 2,741 ) Other financing, net ( 2 ) ( 2 ) Net cash provided by/(used in) financing activities ( 756 ) 1,089 See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). 6 Index RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine months ended June 30, $ in millions 2024 2023 Currency adjustment: Effect of exchange rate changes on cash and cash equivalents, including those segregated for regulatory purposes 56 346 Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash 188 ( 2,445 ) 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 $ 12,736 $ 12,214 Cash and cash equivalents $ 9,095 $ 8,375 Cash and cash equivalents segregated for regulatory purposes and restricted cash 3,641 3,839 Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period $ 12,736 $ 12,214 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,575 $ 858 Cash paid for income taxes, net $ 548 $ 536 Cash outflows for lease liabilities $ 91 $ 92 Non-cash right-of-use assets recorded for new and modified leases $ 51 $ 112 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) June 30, 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 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 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 June 30, 2024 Assets at fair value on a recurring basis: Trading assets: Municipal and provincial obligations $ 1 $ 336 $ — $ — $ 337 Corporate obligations 22 649 — — 671 Government and agency obligations 32 111 — — 143 Agency mortgage-backed securities (“MBS”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABS”) — 218 — — 218 Non-agency CMOs and ABS — 63 — — 63 Total debt securities 55 1,377 — — 1,432 Equity securities 11 3 — — 14 Brokered certificates of deposit — 13 — — 13 Other — — 13 — 13 Total trading assets 66 1,393 13 — 1,472 Available-for-sale securities (1) 946 7,584 — — 8,530 Derivative assets - interest rate 2 398 — ( 315 ) 85 All other investments: Government and agency obligations (2) 90 — — — 90 Other 112 1 29 — 142 Total all other investments 202 1 29 — 232 Other assets - client-owned fractional shares 124 — — — 124 Subtotal 1,340 9,376 42 ( 315 ) 10,443 Other investments - private equity - measured at net asset value (“NAV”) 101 Total assets at fair value on a recurring basis $ 1,340 $ 9,376 $ 42 $ ( 315 ) $ 10,544 Liabilities at fair value on a recurring basis: Trading liabilities: Municipal and provincial obligations $ 8 $ — $ — $ — $ 8 Corporate obligations — 595 — — 595 Government and agency obligations 216 6 — — 222 Agency MBS and CMOs — 23 — — 23 Total debt securities 224 624 — — 848 Equity securities 32 11 — — 43 Total trading liabilities 256 635 — — 891 Derivative liabilities: Interest rate 2 432 — ( 82 ) 352 Foreign exchange — 2 — — 2 Total derivative liabilities 2 434 — ( 82 ) 354 Other payables - repurchase liabilities related to client-owned fractional shares 124 — — — 124 Total liabilities at fair value on a recurring basis $ 382 $ 1,069 $ — $ ( 82 ) $ 1,369 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 June 30, 2024 Level 3 instruments at fair value Financial assets Trading assets Other investments $ in millions Other All other Fair value beginning of period $ 4 $ 29 Total gains/(losses) included in earnings — — Purchases and contributions 31 — Sales and distributions ( 22 ) — Transfers: Into Level 3 — — Out of Level 3 — — Fair value end of period $ 13 $ 29 Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ ( 1 ) $ — Nine months ended June 30, 2024 Level 3 instruments at fair value Financial assets Trading assets Other investments $ in millions Other All other Fair value beginning of period $ 4 $ 30 Total gains/(losses) included in earnings — ( 1 ) Purchases and contributions 60 — Sales and distributions ( 51 ) — Transfers: Into Level 3 — — Out of Level 3 — — Fair value end of period $ 13 $ 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 June 30, 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 $ 3 $ 28 $ ( 4 ) Total gains/(losses) included in earnings ( 1 ) 1 — Purchases and contributions 19 — — Sales and distributions ( 12 ) — — Transfers: Into Level 3 — — — Out of Level 3 — — — Fair value end of period $ 9 $ 29 $ ( 4 ) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 1 $ 1 $ — Nine months ended June 30, 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 55 — — Sales, distributions, and deconsolidations ( 46 ) — — Transfers: Into Level 3 — — — Out of Level 3 — — — Fair value end of period $ 9 $ 29 $ ( 4 ) Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ 1 $ — $ ( 1 ) 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 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 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. 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 June 30, 2024 Private equity investments measured at NAV $ 101 $ 26 Private equity investments not measured at NAV 7 Total private equity investments $ 108 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) June 30, 2024 Bank loans: Residential mortgage loans $ 2 $ 8 $ 10 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. ( 10.4 yrs.) Corporate loans $ — $ 88 $ 88 Collateral or discounted cash flow (1) Recovery rate 33 % - 53 % ( 39 %) Loans held for sale $ 30 $ — $ 30 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 June 30, 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 June 30, 2024 Financial assets: Bank loans, net $ 139 $ 43,852 $ 43,991 $ 45,021 Financial liabilities: Bank deposits - certificates of deposit $ 2,557 $ — $ 2,557 $ 2,562 Other borrowings - subordinated notes payable $ 96 $ — $ 96 $ 99 Senior notes payable $ 1,760 $ — $ 1,760 $ 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 June 30, 2024 Agency residential MBS $ 4,344 $ — $ ( 471 ) $ 3,873 Agency commercial MBS 1,439 — ( 159 ) 1,280 Agency CMOs 1,381 — ( 214 ) 1,167 Other agency obligations 629 — ( 16 ) 613 Non-agency residential MBS 567 1 ( 47 ) 521 U.S. Treasuries 949 — ( 4 ) 945 Corporate bonds 116 1 ( 4 ) 113 Other 19 — ( 1 ) 18 Total available-for-sale securities $ 9,444 $ 2 $ ( 916 ) $ 8,530 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 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. 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 4.0 years as of June 30, 2024. June 30, 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 $ 1 $ 99 $ 1,804 $ 2,440 $ 4,344 Fair value $ 1 $ 97 $ 1,638 $ 2,137 $ 3,873 Weighted-average yield 1.85 % 2.52 % 1.29 % 2.04 % 1.74 % Agency commercial MBS Amortized cost $ 67 $ 911 $ 412 $ 49 $ 1,439 Fair value $ 66 $ 833 $ 342 $ 39 $ 1,280 Weighted-average yield 3.04 % 1.53 % 1.17 % 1.87 % 1.51 % Agency CMOs Amortized cost $ — $ 6 $ 36 $ 1,339 $ 1,381 Fair value $ — $ 6 $ 32 $ 1,129 $ 1,167 Weighted-average yield — % 2.34 % 1.52 % 1.73 % 1.73 % Other agency obligations Amortized cost $ 195 $ 382 $ 43 $ 9 $ 629 Fair value $ 192 $ 372 $ 40 $ 9 $ 613 Weighted-average yield 2.64 % 3.59 % 3.05 % 3.07 % 3.25 % Non-agency residential MBS Amortized cost $ — $ — $ — $ 567 $ 567 Fair value $ — $ — $ — $ 521 $ 521 Weighted-average yield — % — % — % 4.39 % 4.39 % U.S. Treasuries Amortized cost $ 763 $ 186 $ — $ — $ 949 Fair value $ 759 $ 186 $ — $ — $ 945 Weighted-average yield 3.68 % 5.23 % — % — % 3.99 % Corporate bonds Amortized cost $ 14 $ 79 $ 23 $ — $ 116 Fair value $ 14 $ 77 $ 22 $ — $ 113 Weighted-average yield 3.71 % 5.78 % 5.02 % — % 5.38 % Other Amortized cost $ — $ 5 $ 5 $ 9 $ 19 Fair value $ — $ 5 $ 4 $ 9 $ 18 Weighted-average yield — % 7.38 % 5.21 % 8.24 % 7.21 % Total available-for-sale securities Amortized cost $ 1,040 $ 1,668 $ 2,323 $ 4,413 $ 9,444 Fair value $ 1,032 $ 1,576 $ 2,078 $ 3,844 $ 8,530 Weighted-average yield 3.45 % 2.69 % 1.35 % 2.27 % 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 June 30, 2024 Agency residential MBS $ 88 $ ( 1 ) $ 3,730 $ ( 470 ) $ 3,818 $ ( 471 ) Agency commercial MBS — — 1,277 ( 159 ) 1,277 ( 159 ) Agency CMOs 19 — 1,114 ( 214 ) 1,133 ( 214 ) Other agency obligations — — 613 ( 16 ) 613 ( 16 ) Non-agency residential MBS 30 — 421 ( 47 ) 451 ( 47 ) U.S. Treasuries — — 525 ( 4 ) 525 ( 4 ) Corporate bonds — — 78 ( 4 ) 78 ( 4 ) Other — — 9 ( 1 ) 9 ( 1 ) Total $ 137 $ ( 1 ) $ 7,767 $ ( 915 ) $ 7,904 $ ( 916 ) 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 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. 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. June 30, 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) $ 396 $ 434 $ 19,593 $ 509 $ 576 $ 18,270 Foreign exchange — 1 975 4 2 1,191 Other — — 1,012 — — 608 Subtotal 396 435 21,580 513 578 20,069 Derivatives designated as hedging instruments Interest rate 4 — 1,250 8 — 1,200 Foreign exchange — 1 1,203 5 — 1,172 Subtotal 4 1 2,453 13 — 2,372 Total gross fair value/notional amount 400 436 $ 24,033 526 578 $ 22,441 Offset on the Condensed Consolidated Statements of Financial Condition Counterparty netting ( 33 ) ( 33 ) ( 29 ) ( 29 ) Cash collateral netting ( 282 ) ( 49 ) ( 232 ) ( 59 ) Total amounts offset ( 315 ) ( 82 ) ( 261 ) ( 88 ) Net amounts presented on the Condensed Consolidated Statements of Financial Condition $ 85 $ 354 $ 265 $ 490 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition Financial instruments ( 9 ) — ( 131 ) — Total $ 76 $ 354 $ 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 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 June 30, Nine months ended June 30, $ in millions 2024 2023 2024 2023 Interest rate (cash flow hedges) $ ( 2 ) $ 12 $ ( 17 ) $ ( 1 ) Foreign exchange (net investment hedges) 10 ( 16 ) 10 ( 33 ) Total gains/(losses) included in AOCI, net of taxes $ 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 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 three 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 June 30, Nine months ended June 30, Location of gain/(loss) 2024 2023 2024 2023 Interest rate Principal transactions/other revenues $ 3 $ 6 $ 7 $ 17 Foreign exchange Other revenues $ 11 $ ( 20 ) $ 3 $ ( 56 ) 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 June 30, 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 June 30, 2024 Gross amounts of recognized assets/liabilities $ 311 $ 259 $ 570 $ 374 $ 780 $ 1,154 Gross amounts offset on the Condensed Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Condensed Consolidated Statements of Financial Condition 311 259 570 374 780 1,154 Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition ( 311 ) ( 249 ) ( 560 ) ( 374 ) ( 750 ) ( 1,124 ) Net amounts $ — $ 10 $ 10 $ — $ 30 $ 30 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 June 30, 2024 September 30, 2023 Repurchase agreements: Government and agency obligations $ 203 $ 122 Agency MBS and agency CMOs 171 35 Total repurchase agreements $ 374 $ 157 Securities loaned: Equity securities 780 180 Total collateralized financings $ 1,154 $ 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 June 30, 2024 September 30, 2023 Collateral we received that was available to be delivered or repledged $ 3,428 $ 3,267 Collateral that we delivered or repledged $ 1,741 $ 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 June 30, 2024 September 30, 2023 Had the right to deliver or repledge $ 1,217 $ 1,091 Did not have the right to deliver or repledge $ 65 $ 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 June 30, 2024 September 30, 2023 Assets pledged with the FHLB or FRB: Available-for-sale securities $ 3,958 $ 3,897 Bank loans 10,784 10,166 Total assets pledged with the FHLB or FRB $ 14,742 $ 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 June 30, 2024 September 30, 2023 SBL $ 15,429 $ 14,606 C&I loans 9,956 10,406 CRE loans 7,619 7,221 REIT loans 1,755 1,668 Residential mortgage loans 9,245 8,662 Tax-exempt loans 1,431 1,541 Total loans held for investment 45,435 44,104 Held for sale loans 170 145 Total loans held for sale and investment 45,605 44,249 Allowance for credit losses ( 456 ) ( 474 ) Bank loans, net (1) $ 45,149 $ 43,775 ACL as a % of total loans held for investment 1.00 % 1.07 % Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 211 $ 200 (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. 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 $ 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 $ 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. 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 June 30, 2024 Purchases $ 218 $ — $ 5 $ 112 $ 335 Sales $ 159 $ — $ — $ — $ 159 Nine months ended June 30, 2024 Purchases $ 738 $ — $ 5 $ 234 $ 977 Sales $ 322 $ — $ 9 $ — $ 331 Three months ended June 30, 2023 Purchases $ 3 $ — $ — $ 94 $ 97 Sales $ 441 $ — $ — $ — $ 441 Nine months ended June 30, 2023 Purchases $ 360 $ 39 $ 24 $ 394 $ 817 Sales $ 588 $ — $ — $ — $ 588 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 June 30, 2024 SBL $ 8 $ 2 $ 10 $ — $ — $ 15,419 $ 15,429 C&I loans — — — 61 — 9,895 9,956 CRE loans — — — 70 19 7,530 7,619 REIT loans — — — — — 1,755 1,755 Residential mortgage loans 6 — 6 — 8 9,231 9,245 Tax-exempt loans — — — — — 1,431 1,431 Total loans held for investment $ 14 $ 2 $ 16 $ 131 $ 27 $ 45,261 $ 45,435 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 $ 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. 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 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. 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 June 30, 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 June 30, 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 $ 134 $ 47 Residential mortgage loans Single family homes $ 4 $ 5 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 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 nine months ended June 30, 2024 Loans by origination fiscal year $ in millions 2024 2023 2022 2021 2020 Prior Revolving loans Total SBL Risk rating: Pass $ 67 $ 33 $ 15 $ 77 $ 30 $ 52 $ 15,146 $ 15,420 Special mention — — — — — — — — Substandard (1) 9 — — — — — — 9 Doubtful — — — — — — — — Total SBL $ 76 $ 33 $ 15 $ 77 $ 30 $ 52 $ 15,146 $ 15,429 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — C&I loans Risk rating: Pass $ 470 $ 586 $ 1,084 $ 758 $ 602 $ 3,383 $ 2,943 $ 9,826 Special mention — — 5 — 38 15 1 59 Substandard — — — — 39 20 12 71 Doubtful — — — — — — — — Total C&I loans $ 470 $ 586 $ 1,089 $ 758 $ 679 $ 3,418 $ 2,956 $ 9,956 Gross charge-offs $ — $ — $ — $ 3 $ 4 $ 30 $ — $ 37 CRE loans Risk rating: Pass $ 682 $ 1,176 $ 2,210 $ 977 $ 690 $ 1,205 $ 392 $ 7,332 Special mention — 59 27 — 38 20 — 144 Substandard — — 9 5 9 96 16 135 Doubtful — — — — — 8 — 8 Total CRE loans $ 682 $ 1,235 $ 2,246 $ 982 $ 737 $ 1,329 $ 408 $ 7,619 Gross charge offs $ — $ — $ — $ — $ — $ 8 $ — $ 8 REIT loans Risk rating: Pass $ 145 $ 232 $ 182 $ 216 $ 95 $ 250 $ 558 $ 1,678 Special mention — 12 — — — 13 52 77 Substandard — — — — — — — — Doubtful — — — — — — — — Total REIT loans $ 145 $ 244 $ 182 $ 216 $ 95 $ 263 $ 610 $ 1,755 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgage loans Risk rating: Pass $ 1,028 $ 1,678 $ 2,784 $ 1,525 $ 874 $ 1,304 $ 32 $ 9,225 Special mention — — 1 — — 5 — 6 Substandard — — 3 — — 11 — 14 Doubtful — — — — — — — — Total residential mortgage loans $ 1,028 $ 1,678 $ 2,788 $ 1,525 $ 874 $ 1,320 $ 32 $ 9,245 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Tax-exempt loans Risk rating: Pass $ 62 $ 57 $ 266 $ 153 $ 54 $ 839 $ — $ 1,431 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 62 $ 57 $ 266 $ 153 $ 54 $ 839 $ — $ 1,431 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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. 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. June 30, 2024 Loans by origination fiscal year $ in millions 2024 2023 2022 2021 2020 Prior Revolving loans Total FICO score: Below 600 $ 1 $ 7 $ 13 $ 5 $ 3 $ 15 $ — $ 44 600 - 699 43 53 111 52 45 129 3 436 700 - 799 838 1,012 1,599 806 480 652 19 5,406 800 + 145 602 1,065 660 345 520 9 3,346 FICO score not available 1 4 — 2 1 4 1 13 Total $ 1,028 $ 1,678 $ 2,788 $ 1,525 $ 874 $ 1,320 $ 32 $ 9,245 LTV ratio: Below 80% $ 757 $ 1,185 $ 2,144 $ 1,201 $ 677 $ 1,006 $ 31 $ 7,001 80%+ 271 493 644 324 197 314 1 2,244 Total $ 1,028 $ 1,678 $ 2,788 $ 1,525 $ 874 $ 1,320 $ 32 $ 9,245 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 June 30, 2024 Balance at beginning of period $ 6 $ 196 $ 181 $ 19 $ 67 $ 2 $ 471 Provision/(benefit) for credit losses ( 1 ) ( 20 ) 16 1 ( 6 ) — ( 10 ) Net (charge-offs)/recoveries: Charge-offs — ( 6 ) ( 1 ) — — — ( 7 ) Recoveries — — — — 1 — 1 Net (charge-offs)/recoveries — ( 6 ) ( 1 ) — 1 — ( 6 ) Foreign exchange translation adjustment — — 1 — — — 1 Balance at end of period $ 5 $ 170 $ 197 $ 20 $ 62 $ 2 $ 456 Nine months ended June 30, 2024 Balance at beginning of period $ 7 $ 214 $ 161 $ 16 $ 74 $ 2 $ 474 Provision/(benefit) for credit losses ( 2 ) ( 9 ) 43 4 ( 13 ) — 23 Net (charge-offs)/recoveries: Charge-offs — ( 37 ) ( 8 ) — — — ( 45 ) Recoveries — 2 — — 1 — 3 Net (charge-offs)/recoveries — ( 35 ) ( 8 ) — 1 — ( 42 ) Foreign exchange translation adjustment — — 1 — — — 1 Balance at end of period $ 5 $ 170 $ 197 $ 20 $ 62 $ 2 $ 456 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 June 30, 2023 Balance at beginning of period $ 5 $ 219 $ 100 $ 15 $ 74 $ 2 $ 415 Provision/(benefit) for credit losses — ( 8 ) 55 1 6 — 54 Net (charge-offs)/recoveries: Charge-offs — ( 6 ) ( 9 ) — — — ( 15 ) Recoveries — — — — — — — Net (charge-offs)/recoveries — ( 6 ) ( 9 ) — — — ( 15 ) Foreign exchange translation adjustment — 1 1 — — — 2 Balance at end of period $ 5 $ 206 $ 147 $ 16 $ 80 $ 2 $ 456 Nine months ended June 30, 2023 Balance at beginning of period $ 3 $ 226 $ 87 $ 21 $ 57 $ 2 $ 396 Provision/(benefit) for credit losses 2 10 66 ( 5 ) 23 — 96 Net (charge-offs)/recoveries: Charge-offs — ( 30 ) ( 10 ) — — — ( 40 ) Recoveries — — 3 — — — 3 Net (charge-offs)/recoveries — ( 30 ) ( 7 ) — — — ( 37 ) Foreign exchange translation adjustment — — 1 — — — 1 Balance at end of period $ 5 $ 206 $ 147 $ 16 $ 80 $ 2 $ 456 ACL by loan portfolio segment as a % of total ACL 1.1 % 45.3 % 32.2 % 3.5 % 17.5 % 0.4 % 100.0 % 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 29 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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 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 June 30, 2024 September 30, 2023 Affiliated with the firm as of period-end (1) $ 1,282 $ 1,158 No longer affiliated with the firm as of period-end (2) 14 10 Total loans to financial advisors 1,296 1,168 Allowance for credit losses ( 38 ) ( 32 ) Loans to financial advisors, net $ 1,258 $ 1,136 Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”) $ 8 $ 6 Allowance for credit losses as a percent of total loans to financial advisors 2.93 % 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 June 30, 2024 LIHTC funds $ 139 $ 66 Restricted Stock Trust Fund 27 27 Total $ 166 $ 93 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 June 30, 2024 September 30, 2023 Assets: Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash $ 15 $ 5 Other assets 124 46 Total assets $ 139 $ 51 Liabilities: Other payables $ 42 $ — Total liabilities $ 42 $ — Noncontrolling interests $ ( 7 ) $ ( 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. June 30, 2024 September 30, 2023 $ in millions Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss LIHTC funds $ 8,824 $ 3,114 $ 76 $ 8,451 $ 2,964 $ 113 Private Equity Interests 2,720 852 101 2,591 655 101 Other 115 83 3 201 84 3 Total $ 11,659 $ 4,049 $ 180 $ 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 June 30, 2024 September 30, 2023 Investments in company-owned life insurance policies $ 1,330 $ 1,110 Property and equipment, net 618 561 Lease right-of-use (“ROU”) assets 562 560 Prepaid expenses 236 209 Investments in FHLB and FRB stock 114 114 Client-owned fractional shares 124 98 All other 238 141 Total other assets $ 3,222 $ 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 June 30, 2024 September 30, 2023 ROU assets (included in “Other assets”) $ 562 $ 560 Lease liabilities (included in “Other payables”) $ 542 $ 539 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 June 30, Nine months ended June 30, $ in millions 2024 2023 2024 2023 Lease costs $ 37 $ 35 $ 106 $ 98 Variable lease costs $ 9 $ 9 $ 28 $ 24 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. June 30, 2024 September 30, 2023 $ in millions Balance Weighted-average rate Balance Weighted-average rate Money market and savings accounts $ 30,963 2.23 % $ 32,268 1.85 % Interest-bearing demand deposits 20,411 5.00 % 18,376 4.98 % Certificates of deposit 2,562 4.70 % 2,831 4.41 % Non-interest-bearing demand deposits 465 — 724 — Total bank deposits $ 54,401 3.39 % $ 54,199 3.06 % 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. (“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 $ 14.04 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 June 30, 2024 September 30, 2023 FDIC-insured bank deposits $ 48,167 $ 48,344 Bank deposits exceeding FDIC insurance limit (1) (2) 6,234 5,855 Total bank deposits $ 54,401 $ 54,199 FDIC-insured bank deposits as a % of total bank deposits 89 % 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 $ 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 $ 64 Over three through six months 45 Over six through twelve months 36 Over twelve months 15 Total certificates of deposit that exceeded the FDIC insurance limit (1) $ 160 (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 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 2025 1,743 2026 268 2027 20 2028 15 Thereafter 8 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 June 30, Nine months ended June 30, $ in millions 2024 2023 2024 2023 Money market and savings accounts $ 169 $ 125 $ 484 $ 370 Interest-bearing demand deposits 247 157 742 266 Certificates of deposit 30 30 92 54 Total interest expense on deposits $ 446 $ 312 $ 1,318 $ 690 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. June 30, 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 5.64 % 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 Subordinated notes - fixed-to-floating (including an unaccreted premium of $ 1 and $ 2 , respectively) 5.75 % May 2030 99 5.75 % May 2030 100 Total other borrowings $ 1,049 $ 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 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. 34 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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 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 June 30, 2024, the Variable Rate Facility Fee, which is applied to the committed amount, was 0.125 % per annum. 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 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. 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 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 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 June 30, 2024, we had no such open underwriting commitments. 35 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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. The following table presents our commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding at our Bank segment. $ in millions June 30, 2024 September 30, 2023 SBL and other consumer lines of credit $ 42,523 $ 38,791 Commercial lines of credit $ 4,436 $ 4,131 Unfunded lending commitments $ 672 $ 936 Standby letters of credit $ 106 $ 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 $ 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 $ 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 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 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. 36 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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. 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 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. 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 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. 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 June 30, 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 nine months ended June 30, 2024 and 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 June 30, 2024 Series B Preferred Stock $ 1 $ 15.94 $ 1 $ 15.94 Nine months ended June 30, 2024 Series B Preferred Stock $ 4 $ 47.82 $ 4 $ 47.82 Three months ended June 30, 2023 Series A Preferred Stock (1) $ — $ — $ 1 $ 16.88 Series B Preferred Stock 1 $ 15.94 1 $ 15.94 Total (1) $ 1 $ 2 Nine months ended June 30, 2023 Series A Preferred Stock (1) $ 2 $ 33.76 $ 3 $ 50.64 Series B Preferred Stock 3 $ 47.82 3 $ 47.82 Total (1) $ 5 $ 6 (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 nine months ended June 30, 2024 and 2023. Three months ended June 30, Nine months ended June 30, Shares in millions 2024 2023 2024 2023 Balance beginning of period 207.3 211.6 208.8 215.1 Repurchases of common stock under the Board of Directors’ common stock repurchase authorization ( 2.0 ) ( 3.3 ) ( 5.1 ) ( 8.4 ) Issuances due to vesting of RSUs, employee stock purchases, and exercise of stock options, net of forfeitures 0.3 0.2 1.9 1.8 Balance end of period 205.6 208.5 205.6 208.5 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 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 June 30, Nine months ended June 30, 2024 2023 2024 2023 Dividends per common share - declared $ 0.45 $ 0.42 $ 1.35 $ 1.26 Dividends per common share - paid $ 0.45 $ 0.42 $ 1.32 $ 1.18 Our dividend payout ratio is detailed in the following table for each respective period and is computed by dividing dividends declared per common share by earnings per diluted common share. Three months ended June 30, Nine months ended June 30, 2024 2023 2024 2023 Dividend payout ratio 19.5 % 24.6 % 19.7 % 21.2 % 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 June 30, 2024 AOCI as of beginning of period $ 143 $ ( 198 ) $ ( 55 ) $ ( 698 ) $ 29 $ ( 724 ) OCI: OCI before reclassifications and taxes 14 ( 12 ) 2 14 4 20 Amounts reclassified from AOCI, before tax — — — — ( 7 ) ( 7 ) Pre-tax net OCI 14 ( 12 ) 2 14 ( 3 ) 13 Income tax effect ( 4 ) — ( 4 ) ( 3 ) 1 ( 6 ) OCI for the period, net of tax 10 ( 12 ) ( 2 ) 11 ( 2 ) 7 AOCI as of end of period $ 153 $ ( 210 ) $ ( 57 ) $ ( 687 ) $ 27 $ ( 717 ) Nine months ended June 30, 2024 AOCI as of beginning of period $ 143 $ ( 216 ) $ ( 73 ) $ ( 942 ) $ 44 $ ( 971 ) OCI: OCI before reclassifications and taxes 14 6 20 338 4 362 Amounts reclassified from AOCI, before tax — — — — ( 26 ) ( 26 ) Pre-tax net OCI 14 6 20 338 ( 22 ) 336 Income tax effect ( 4 ) — ( 4 ) ( 83 ) 5 ( 82 ) OCI for the period, net of tax 10 6 16 255 ( 17 ) 254 AOCI as of end of period $ 153 $ ( 210 ) $ ( 57 ) $ ( 687 ) $ 27 $ ( 717 ) Three months ended June 30, 2023 AOCI as of beginning of period $ 136 $ ( 206 ) $ ( 70 ) $ ( 758 ) $ 30 $ ( 798 ) OCI: OCI before reclassifications and taxes ( 22 ) 36 14 ( 102 ) 26 ( 62 ) Amounts reclassified from AOCI, before tax — — — — ( 9 ) ( 9 ) Pre-tax net OCI ( 22 ) 36 14 ( 102 ) 17 ( 71 ) Income tax effect 6 — 6 26 ( 5 ) 27 OCI for the period, net of tax ( 16 ) 36 20 ( 76 ) 12 ( 44 ) AOCI as of end of period $ 120 $ ( 170 ) $ ( 50 ) $ ( 834 ) $ 42 $ ( 842 ) Nine months ended June 30, 2023 AOCI as of beginning of period $ 153 $ ( 276 ) $ ( 123 ) $ ( 902 ) $ 43 $ ( 982 ) OCI: OCI before reclassifications and taxes ( 45 ) 107 62 109 21 192 Amounts reclassified from AOCI, before tax — — — — ( 22 ) ( 22 ) Pre-tax net OCI ( 45 ) 107 62 109 ( 1 ) 170 Income tax effect 12 ( 1 ) 11 ( 41 ) — ( 30 ) OCI for the period, net of tax ( 33 ) 106 73 68 ( 1 ) 140 AOCI as of end of period $ 120 $ ( 170 ) $ ( 50 ) $ ( 834 ) $ 42 $ ( 842 ) 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. 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 June 30, 2024 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 1,364 $ — $ 254 $ — $ ( 7 ) $ 1,611 Brokerage revenues: Securities commissions: Mutual and other fund products 142 1 1 — — 144 Insurance and annuity products 130 — — — — 130 Equities, exchange-traded funds (“ETFs”) and fixed income products 111 33 — — ( 2 ) 142 Subtotal securities commissions 383 34 1 — ( 2 ) 416 Principal transactions (1) 26 87 — 3 — 116 Total brokerage revenues 409 121 1 3 ( 2 ) 532 Account and service fees: Mutual fund and annuity service fees 118 — 2 — — 120 RJBDP fees 347 1 — — ( 199 ) 149 Client account and other fees 66 1 3 — ( 11 ) 59 Total account and service fees 531 2 5 — ( 210 ) 328 Investment banking: Merger & acquisition and advisory — 91 — — — 91 Equity underwriting 10 33 — — — 43 Debt underwriting — 49 — — — 49 Total investment banking 10 173 — — — 183 Other: Affordable housing investments business revenues — 30 — — — 30 All other (1) 13 2 1 9 ( 4 ) 21 Total other 13 32 1 9 ( 4 ) 51 Total non-interest revenues 2,327 328 261 12 ( 223 ) 2,705 Interest income (1) 121 32 4 867 33 1,057 Total revenues 2,448 360 265 879 ( 190 ) 3,762 Interest expense ( 32 ) ( 30 ) — ( 461 ) ( 11 ) ( 534 ) Net revenues $ 2,416 $ 330 $ 265 $ 418 $ ( 201 ) $ 3,228 (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 June 30, 2023 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 1,164 $ 1 $ 217 $ — $ ( 9 ) $ 1,373 Brokerage revenues: Securities commissions: Mutual and other fund products 135 1 2 — ( 1 ) 137 Insurance and annuity products 103 — — — — 103 Equities, ETFs and fixed income products 86 31 — — ( 1 ) 116 Subtotal securities commissions 324 32 2 — ( 2 ) 356 Principal transactions (1) 25 78 — 3 ( 1 ) 105 Total brokerage revenues 349 110 2 3 ( 3 ) 461 Account and service fees: Mutual fund and annuity service fees 103 — — — — 103 RJBDP fees 384 1 — — ( 278 ) 107 Client account and other fees 59 2 5 — ( 12 ) 54 Total account and service fees 546 3 5 — ( 290 ) 264 Investment banking: Merger & acquisition and advisory — 88 — — — 88 Equity underwriting 9 25 — — 1 35 Debt underwriting — 28 — — — 28 Total investment banking 9 141 — — 1 151 Other: Affordable housing investments business revenues — 21 — — — 21 All other (1) 25 — — 14 ( 3 ) 36 Total other 25 21 — 14 ( 3 ) 57 Total non-interest revenues 2,093 276 224 17 ( 304 ) 2,306 Interest income (1) 114 21 2 826 24 987 Total revenues 2,207 297 226 843 ( 280 ) 3,293 Interest expense ( 25 ) ( 21 ) — ( 329 ) ( 11 ) ( 386 ) Net revenues $ 2,182 $ 276 $ 226 $ 514 $ ( 291 ) $ 2,907 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. 42 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index Nine months ended June 30, 2024 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 3,838 $ 1 $ 720 $ — $ ( 25 ) $ 4,534 Brokerage revenues: Securities commissions: Mutual and other fund products 419 4 4 — ( 3 ) 424 Insurance and annuity products 382 — — — — 382 Equities, ETFs and fixed income products 313 101 — — ( 7 ) 407 Subtotal securities commissions 1,114 105 4 — ( 10 ) 1,213 Principal transactions (1) 84 278 — 7 — 369 Total brokerage revenues 1,198 383 4 7 ( 10 ) 1,582 Account and service fees: Mutual fund and annuity service fees 339 — 7 — ( 1 ) 345 RJBDP fees 1,088 4 — — ( 631 ) 461 Client account and other fees 195 4 9 — ( 32 ) 176 Total account and service fees 1,622 8 16 — ( 664 ) 982 Investment banking: Merger & acquisition and advisory — 316 — — — 316 Equity underwriting 29 82 — — — 111 Debt underwriting — 116 — — — 116 Total investment banking 29 514 — — — 543 Other: Affordable housing investments business revenues — 75 — — — 75 All other (1) 23 3 2 31 ( 14 ) 45 Total other 23 78 2 31 ( 14 ) 120 Total non-interest revenues 6,710 984 742 38 ( 713 ) 7,761 Interest income (1) 361 81 10 2,607 100 3,159 Total revenues 7,071 1,065 752 2,645 ( 613 ) 10,920 Interest expense ( 88 ) ( 76 ) — ( 1,362 ) ( 35 ) ( 1,561 ) Net revenues $ 6,983 $ 989 $ 752 $ 1,283 $ ( 648 ) $ 9,359 (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 Nine months ended June 30, 2023 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 3,319 $ 2 $ 620 $ — $ ( 24 ) $ 3,917 Brokerage revenues: Securities commissions: Mutual and other fund products 398 4 4 — ( 2 ) 404 Insurance and annuity products 320 — — — — 320 Equities, ETFs and fixed income products 259 96 — — ( 2 ) 353 Subtotal securities commissions 977 100 4 — ( 4 ) 1,077 Principal transactions (1) 81 274 — 11 ( 2 ) 364 Total brokerage revenues 1,058 374 4 11 ( 6 ) 1,441 Account and service fees: Mutual fund and annuity service fees 306 — 1 — ( 1 ) 306 RJBDP fees 1,200 3 — — ( 859 ) 344 Client account and other fees 175 5 15 — ( 34 ) 161 Total account and service fees 1,681 8 16 — ( 894 ) 811 Investment banking: Merger & acquisition and advisory — 277 — — — 277 Equity underwriting 27 69 — — — 96 Debt underwriting — 73 — — — 73 Total investment banking 27 419 — — — 446 Other: Affordable housing investments business revenues — 68 — — — 68 All other (1) 40 1 2 33 ( 11 ) 65 Total other 40 69 2 33 ( 11 ) 133 Total non-interest revenues 6,125 872 642 44 ( 935 ) 6,748 Interest income (1) 340 65 7 2,251 66 2,729 Total revenues 6,465 937 649 2,295 ( 869 ) 9,477 Interest expense ( 76 ) ( 64 ) — ( 733 ) ( 38 ) ( 911 ) Net revenues $ 6,389 $ 873 $ 649 $ 1,562 $ ( 907 ) $ 8,566 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. At June 30, 2024 and September 30, 2023, net receivables related to contracts with customers were $ 595 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 June 30, Nine months ended June 30, $ in millions 2024 2023 2024 2023 Interest income: Cash and cash equivalents $ 121 $ 109 $ 381 $ 239 Assets segregated for regulatory purposes and restricted cash 46 47 140 152 Trading assets — debt securities 20 13 54 40 Available-for-sale securities 55 56 167 163 Brokerage client receivables 48 42 140 124 Bank loans, net 736 698 2,197 1,954 All other 31 22 80 57 Total interest income $ 1,057 $ 987 $ 3,159 $ 2,729 Interest expense: Bank deposits $ 446 $ 312 1,318 $ 690 Trading liabilities — debt securities 11 9 33 26 Brokerage client payables 22 17 63 57 Other borrowings 7 12 23 30 Senior notes payable 23 23 69 69 All other 25 13 55 39 Total interest expense $ 534 $ 386 $ 1,561 $ 911 Net interest income $ 523 $ 601 $ 1,598 $ 1,818 Less: 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. 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 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 . 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 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 . 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 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. 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 June 30, 2024: Tier 1 leverage $ 10,092 12.7 % $ 3,191 4.0 % $ 3,989 5.0 % Tier 1 capital $ 10,092 22.2 % $ 2,726 6.0 % $ 3,635 8.0 % CET1 $ 10,016 22.0 % $ 2,045 4.5 % $ 2,953 6.5 % Total capital $ 10,707 23.6 % $ 3,635 8.0 % $ 4,544 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 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 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. 47 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index 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 June 30, 2024: Tier 1 leverage $ 3,392 8.2 % $ 1,654 4.0 % $ 2,068 5.0 % Tier 1 capital $ 3,392 14.2 % $ 1,435 6.0 % $ 1,913 8.0 % CET1 $ 3,392 14.2 % $ 1,076 4.5 % $ 1,555 6.5 % Total capital $ 3,693 15.4 % $ 1,913 8.0 % $ 2,392 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 June 30, 2024: Tier 1 leverage $ 1,457 7.4 % $ 792 4.0 % $ 990 5.0 % Tier 1 capital $ 1,457 16.5 % $ 530 6.0 % $ 707 8.0 % CET1 $ 1,457 16.5 % $ 398 4.5 % $ 575 6.5 % Total capital $ 1,509 17.1 % $ 707 8.0 % $ 884 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 % 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 June 30, 2024 September 30, 2023 Raymond James & Associates, Inc. : (Alternative Method elected) Net capital as a percent of aggregate debit items 33.7 % 43.3 % Net capital $ 1,011 $ 1,035 Less: required net capital ( 60 ) ( 48 ) Excess net capital $ 951 $ 987 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. 48 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Index NOTE 22 – EARNINGS PER SHARE The following table presents the computation of basic and diluted earnings per common share. Three months ended June 30, Nine months ended June 30, in millions, except per share amounts 2024 2023 2024 2023 Income for basic earnings per common share: Net income available to common shareholders $ 491 $ 369 $ 1,462 $ 1,301 Less allocation of earnings and dividends to participating securities ( 1 ) ( 1 ) ( 3 ) ( 4 ) Net income available to common shareholders after participating securities $ 490 $ 368 $ 1,459 $ 1,297 Income for diluted earnings per common share: Net income available to common shareholders $ 491 $ 369 $ 1,462 $ 1,301 Less allocation of earnings and dividends to participating securities ( 1 ) ( 1 ) ( 3 ) ( 4 ) Net income available to common shareholders after participating securities $ 490 $ 368 $ 1,459 $ 1,297 Common shares: Average common shares in basic computation 206.8 210.1 207.9 213.0 Dilutive effect of outstanding stock options and certain RSUs 5.5 4.7 5.2 5.0 Average common and common equivalent shares used in diluted computation 212.3 214.8 213.1 218.0 Earnings per common share: Basic $ 2.37 $ 1.75 $ 7.02 $ 6.09 Diluted $ 2.31 $ 1.71 $ 6.85 $ 5.95 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 0.1 1.8 0.1 1.4 The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the period to participating securities, consisting of 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 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. 49 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 June 30, Nine months ended June 30, $ in millions 2024 2023 2024 2023 Net revenues: Private Client Group $ 2,416 $ 2,182 $ 6,983 $ 6,389 Capital Markets 330 276 989 873 Asset Management 265 226 752 649 Bank 418 514 1,283 1,562 Other 28 15 71 34 Intersegment eliminations ( 229 ) ( 306 ) ( 719 ) ( 941 ) Total net revenues $ 3,228 $ 2,907 $ 9,359 $ 8,566 Pre-tax income/(loss): Private Client Group $ 441 $ 411 $ 1,324 $ 1,286 Capital Markets ( 14 ) ( 34 ) ( 28 ) ( 84 ) Asset Management 112 89 305 251 Bank 115 66 282 293 Other ( 10 ) ( 46 ) — ( 51 ) Total pre-tax income $ 644 $ 486 $ 1,883 $ 1,695 No individual client accounted for more than ten percent of revenues in any of the periods presented. The following table presents our net interest income on a segment basis. Three months ended June 30, Nine months ended June 30, $ in millions 2024 2023 2024 2023 Net interest income: Private Client Group $ 89 $ 89 $ 273 $ 264 Capital Markets 2 — 5 1 Asset Management 4 2 10 7 Bank 406 497 1,245 1,518 Other 22 13 65 28 Net interest income $ 523 $ 601 $ 1,598 $ 1,818 The following table presents our total assets on a segment basis. $ in millions June 30, 2024 September 30, 2023 Total assets: Private Client Group $ 13,636 $ 12,375 Capital Markets 3,266 3,087 Asset Management 596 567 Bank 60,574 60,041 Other 2,556 2,290 Total $ 80,628 $ 78,360 50 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 June 30, 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 June 30, Nine months ended June 30, $ in millions 2024 2023 2024 2023 Net revenues: U.S. $ 2,950 $ 2,652 $ 8,557 $ 7,819 Canada 154 140 448 418 Europe 124 115 354 329 Total net revenues $ 3,228 $ 2,907 $ 9,359 $ 8,566 Pre-tax income/(loss): U.S. $ 615 $ 492 $ 1,801 $ 1,625 Canada 31 17 95 84 Europe ( 2 ) ( 23 ) ( 13 ) ( 14 ) Total pre-tax income $ 644 $ 486 $ 1,883 $ 1,695 The following table presents our total assets by major geographic area in which they were held. $ in millions June 30, 2024 September 30, 2023 Total assets: U.S. $ 74,881 $ 72,506 Canada 3,274 3,404 Europe 2,473 2,450 Total $ 80,628 $ 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 June 30, 2024 September 30, 2023 Goodwill: U.S. $ 1,250 $ 1,250 Canada 24 25 Europe 168 162 Total $ 1,442 $ 1,437 51 RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Index