What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2024-11-26 compared with 2023-11-21 · 501 added, 544 removed, 2801 unchanged (27% of the section changed)

40 unchanged sentences

We have audited the accompanying consolidated statements of financial condition of Raymond James Financial, Inc.

and subsidiaries (the Company) as of September 30, 2023 and 2022, the related consolidated statements of income and comprehensive income, shareholders’ equity, and cash flows for each of the years in the three year period ended September 30, 2023, and the related notes (collectively, the consolidated financial statements).

and subsidiaries (the Company) as of September 30, 2024 and 2023, the related consolidated statements of income and comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three year period ended September 30, 2024, and the related notes (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three year period ended September 30, 2024, in conformity with U.S.

4 unchanged sentences

Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

9 unchanged sentences

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Assessment of the allowance for credit losses related to the commercial and industrial (C&I), real estate investment trust (REIT) and the commercial real estate (CRE) portfolio segments that are collectively evaluated for impairment

As discussed in Note 2 and Note 8 to the consolidated financial statements, the Company’s allowance for credit losses on loans was $474 million as of September 30, 2023, a portion of which related to the Raymond James Bank allowance for credit losses (ACL) on C&I, REIT and CRE portfolio segments evaluated on a collective basis (the collective ACL).

The Company estimates the collective ACL using a current expected credit losses methodology which is based on relevant information about historical losses, current conditions, and reasonable and supportable forecasts of economic conditions that affect the collectability of loan balances.

The collective ACL is a product of multiplying the Company’s estimates of

Assessment of the allowance for credit losses related to the commercial and industrial (C&I) and the commercial real estate (CRE) portfolio segments that are collectively evaluated for impairment

As discussed in Note 2 and Note 8 to the consolidated financial statements, the Company’s allowance for credit losses on loans was $457 million as of September 30, 2024, a portion of which related to the Raymond James Bank allowance for credit losses (ACL) on C&I and CRE portfolio segments evaluated on a collective basis (the collective ACL).

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

probability of default (PD), loss given default (LGD) and exposure at default.

that affect the collectability of loan balances.

The collective ACL is a product of multiplying the Company’s estimates of probability of default (PD), loss given default (LGD) and exposure at default.

The Company uses third-party historical information combined with macroeconomic variables over the reasonable and supportable forecast periods based on a single economic forecast scenario to estimate the PDs and LGDs.

After the reasonable and supportable forecast periods, for C&I and REIT portfolio segments, the Company reverts to historical loss information over a one-year period using a straight-line reversion approach.

After the reasonable and supportable forecast periods, for the C&I portfolio segment, the Company reverts to historical loss information over a one-year period using a straight-line reversion approach.

For the CRE portfolio segment, the Company incorporates a reasonable and supportable forecast of various macroeconomic variables over the remaining life of the assets.

1 unchanged sentence

Adjustments are made to the collective ACL to reflect certain qualitative factors that are not incorporated into the quantitative models and related estimate.

We identified the assessment of the September 30, 2023 collective ACL on Raymond James Bank loans related to the C&I, REIT and CRE portfolio segments as a critical audit matter.

We identified the assessment of the September 30, 2024 collective ACL on Raymond James Bank loans related to the C&I and CRE portfolio segments as a critical audit matter.

A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment due to significant measurement uncertainty.

5 unchanged sentences

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s measurement of the September 30, 2023 collective ACL estimate on Raymond James Bank loans related to the C&I, REIT and CRE portfolio segments, including controls over the:

• development of the collective ACL methodology on Bank loans related to the C&I, REIT and CRE portfolio segments

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s measurement of the September 30, 2024 collective ACL estimate on Raymond James Bank loans related to the C&I and CRE portfolio segments, including controls over the:

• development of the collective ACL methodology on Bank loans related to the C&I and CRE portfolio segments

• development of the PD and LGD models

2 unchanged sentences

• performance monitoring of the PD and LGD models

• analysis of the collective ACL on Bank loans related to the C&I, REIT and CRE portfolio segments results, trends, and ratios.

We evaluated the Company’s process to develop the September 30, 2023 collective ACL estimate on Bank loans related to the C&I, REIT and CRE portfolio segments by testing certain sources of data, factors, and assumptions that the Company used, and considered the relevance and reliability of such data, factors, and assumptions.

• analysis of the collective ACL on Bank loans related to the C&I and CRE portfolio segments results, trends, and ratios.

We evaluated the Company’s process to develop the September 30, 2024 collective ACL estimate on Bank loans related to the C&I and CRE portfolio segments by testing certain sources of data, factors, and assumptions that the Company used, and considered the relevance and reliability of such data, factors, and assumptions.

In addition, we involved credit risk professionals with specialized skills and knowledge, who assisted in:

6 unchanged sentences

• determining whether the loan portfolio is segmented by similar risk characteristics by comparing to the Company’s business environment and relevant industry practices

• evaluating the relevance of third-party historical information by comparing to specific portfolio segment risk characteristics

• evaluating the relevance of third-party historical information used by comparing to specific portfolio segment risk characteristics

• performing credit file reviews on a selection of loans to assess loan characteristics or risk ratings by evaluating the financial performance of the borrower, sources of repayment, and any relevant guarantees or underlying collateral and

2 unchanged sentences

AND SUBSIDIARIES

We also assessed the sufficiency of the audit evidence obtained related to the September 30, 2023 collective ACL estimate on Bank loans related to the C&I, REIT and CRE portfolio segments by evaluating the:

We also assessed the sufficiency of the audit evidence obtained related to the September 30, 2024 collective ACL estimate on Bank loans related to the C&I and CRE portfolio segments by evaluating the:

• cumulative results of the audit procedures

53 unchanged sentences

Total equity attributable to Raymond James Financial, Inc.

11,673 10,214

Noncontrolling interests ( 6 ) ( 27 )

9 unchanged sentences

in millions, except per share amounts

2024 2023 2022

Asset management and related administrative fees

26 unchanged sentences

Professional fees

Bank loan provision/(benefit) for credit losses 132 100 ( 32 )

Losses on extinguishment of debt — — 98

Bank loan provision for credit losses

Total non-compensation expenses 1,965 2,040 1,652

39 unchanged sentences

Balance beginning of year

Issuance of shares for stock split — — 1

Other — — ( 1 )

Share issuances

Balance end of year

2 unchanged sentences

3,143 2,987 2,088

Share-based compensation amortization 248 230 186

Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures ( 182 ) ( 117 ) ( 135 )

Employee stock purchases 42 43 42

Common stock issued for TriState Capital acquisition — — 778

Restricted stock awards issued for TriState Capital acquisition — — 28

Employee stock purchases

Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures ( 117 ) ( 135 ) ( 77 )

Share-based compensation amortization 230 186 126

Issuance of shares for stock split — — ( 1 )

Balance end of year

7 unchanged sentences

( 387 ) ( 369 ) ( 299 )

Cumulative adjustments for changes in accounting principles — — ( 35 )

Balance end of year

3 unchanged sentences

( 2,252 ) ( 1,512 ) ( 1,437 )

Purchases/surrenders

( 921 ) ( 810 ) ( 173 )

14 unchanged sentences

$ ( 27 ) $ ( 26 ) $ 58

Net income/(loss) attributable to noncontrolling interests ( 1 ) ( 1 ) 23

Deconsolidations and sales — ( 83 ) ( 27 )

Net loss attributable to noncontrolling interests

— ( 1 ) ( 1 )

Other net changes in noncontrolling interests

Balance end of year

15 unchanged sentences

Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments ( 36 ) ( 49 ) 23

Provisions/(benefits) for credit losses and legal and regulatory proceedings 292 111 ( 20 )

Provisions for credit losses and legal and regulatory proceedings

Share-based compensation expense 254 237 192

Unrealized (gain)/loss on company-owned life insurance policies, net of expenses ( 233 ) ( 96 ) 174

Losses on extinguishment of debt — — 98

Other 22 10 49

12 unchanged sentences

Net cash provided by/(used in) operating activities 2,155 ( 3,514 ) 72

( 3,514 ) 72 6,647

Cash flows from investing activities:

10 unchanged sentences

( 205 ) ( 173 ) ( 91 )

Purchase of Federal Reserve Bank stock

Purchases of Federal Home Loan Bank stock, net

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

Investment in note receivable — — ( 125 )

Investment in solar tax credit equity investment

Renewable energy tax credit equity investments

( 42 ) ( 69 ) —

(Purchases)/sales of other investments, net 20 ( 6 ) 24

2 unchanged sentences

Net cash used in investing activities ( 968 ) ( 274 ) ( 7,151 )

Cash flows from financing activities:

Increase in bank deposits 1,811 2,842 6,269

Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements ( 984 ) ( 862 ) ( 216 )

Dividends on common and preferred stock ( 383 ) ( 355 ) ( 277 )

Exercise of stock options and employee stock purchases 46 46 52

Redemption of preferred stock

Proceeds from FHLB advances

1,300 3,200 1,025

Repayments of FHLB advances and other borrowed funds

( 1,350 ) ( 3,391 ) ( 967 )

Other financing, net ( 2 ) ( 2 ) ( 7 )

Net cash provided by financing activities 438 1,438 5,879

See accompanying Notes to Consolidated Financial Statements.

6 unchanged sentences

$ in millions 2024 2023 2022

Cash flows from financing activities:

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

Extinguishment of senior notes payable — — ( 844 )

Increase in bank deposits 2,842 6,269 5,694

Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements ( 862 ) ( 216 ) ( 150 )

Dividends on common and preferred stock ( 355 ) ( 277 ) ( 218 )

Redemption of preferred stock

Exercise of stock options and employee stock purchases 46 52 53

Proceeds from Federal Home Loan Bank advances 3,200 1,025 —

Repayments of Federal Home Loan Bank advances and other borrowed funds ( 3,391 ) ( 967 ) ( 31 )

Other financing, net ( 2 ) ( 7 ) ( 9 )

Net cash provided by financing activities 1,438 5,879 5,232

Currency adjustment:

10 unchanged sentences

Cash outflows for lease liabilities $ 121 $ 123 $ 111

Non-cash right-of-use assets recorded for new and modified leases $ 143 $ 68 $ 168

Non-cash right-of-use (“ROU”) lease assets recorded for new and modified leases

$ 63 $ 143 $ 68

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

13 unchanged sentences

The firm also provides corporate and retail banking services, and trust services.

For further information about our business segments, see Note 26.

For additional information about our business segments, see Note 26.

As used herein, the terms “our,” “we,” or “us” refer to RJF and/or one or more of its subsidiaries.

12 unchanged sentences

Accounting guidance recently adopted

In March 2023, the Financial Accounting Standards Board (“FASB”) issued amended guidance related to accounting for investments in tax credit structures using the proportional amortization method (ASU 2023-02).

The amendment permits reporting entities to elect to account for their equity investments in tax credit structures using the proportional amortization method if certain conditions are met.

This amendment requires entities to make disclosures about all investments in a tax credit program for which they have elected to account for using the proportional amortization method, including those investments in an elected tax credit program that do not meet the conditions to apply the proportional amortization method.

We adopted this guidance on October 1, 2022 using a modified retrospective approach.

The impact on our financial statements upon adoption of this new standard was insignificant as our eligible investments upon adoption were not significant.

Our significant accounting policies described below have been updated for the adoption of this guidance where applicable.

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 8 for additional disclosures required by this guidance.

Our significant accounting policies described below have been updated for adoption of this guidance where applicable.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Significant accounting policies

3 unchanged sentences

Our performance obligations to our customers are generally satisfied when we transfer the promised service to our customer, either at a point in time or over time.

Revenue from a performance obligation transferred at a point in time is recognized at the time that the

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

customer obtains control over the promised service.

Revenue from a performance obligation transferred at a point in time is recognized at the time that the customer obtains control over the promised service.

Revenue from our performance obligations satisfied over time is recognized in a manner that depicts our performance in transferring control of the service, which is generally measured based on time elapsed, as our customers receive the benefit of our services as they are provided.

9 unchanged sentences

We earn asset management and related administrative fees for performing asset management, portfolio management and related administrative services to retail and institutional clients.

Such fees are generally calculated as a percentage of the value of our Private Client Group (“PCG”) client assets in fee-based accounts or on the net asset value of assets managed by our Raymond James Investment Management division (“Raymond James Investment Management”) in our Asset Management segment.

Such fees are generally calculated as a percentage of the value of our Private Client Group (“PCG”) client assets in fee-based accounts or on the net asset value of funds managed by our Raymond James Investment Management division (“Raymond James Investment Management”) in our Asset Management segment.

The values of these assets are impacted by market fluctuations and net inflows or outflows of assets.

Fees are generally collected quarterly and are based on balances either at the beginning of the quarter or the end of the quarter, or average balances throughout the quarter.

Fees are generally collected quarterly and are based on balances either at the beginning of the quarter or at the end of the quarter, or average balances throughout the quarter.

Asset management and related administrative fees are recognized on a monthly basis (i.e., over time) as the services are performed.

Revenues related to fee-based accounts under administration in PCG are shared by the PCG and Asset Management segments, the amount of which depends on whether clients are invested in “managed programs” that are overseen by our Asset Management segment (i.e., included in financial assets under management (“AUM”) in the Asset Management segment) and the administrative services provided.

The Asset Management segment receives a higher portion of the revenues related to accounts invested in managed programs, as compared to the portion received for non-managed programs, as it is performing portfolio management services in addition to administrative services.

Asset management revenues earned by Raymond James Investment Management for retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage are recorded entirely in the Asset Management segment.

5 unchanged sentences

Upfront commissions received are generally based on a fixed rate applied, as a percentage, to amounts invested or the value of the contract at the time of sale and are generally recognized at the time of sale.

Trailing commissions are generally based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract.

Trailing commissions are generally based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

of the insurance policy or annuity contract.

Trailing commissions on eligible products are generally received monthly or quarterly over the period that our client holds the investment or holds the contract.

1 unchanged sentence

Equities, ETFs, and fixed income products

We earn commissions for executing and clearing transactions for customers, primarily in listed and over-the-counter equity securities, including exchange-traded funds (“ETFs”), options, and fixed income securities.

Such revenues primarily arise from transactions for retail clients in our PCG segment, as well as services related to sales and trading activities transacted on an agency basis in our Capital Markets segment.

Commissions are recognized on trade date, generally received from the customer on settlement date, and we record a receivable between the trade date and the date collected from the customer.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Principal transactions

Principal transactions include revenues from clients’ purchases and sales of financial instruments, including fixed income and equity securities and derivatives, in which we transact on a principal basis.

We make markets in certain fixed income securities and we carry inventories of financial instruments to facilitate such transactions.

Principal transactions include revenues from clients’ purchases and sales of financial instruments in which we transact on a principal basis, including fixed income products, equity securities, and derivatives.

We make markets in certain fixed income debt instruments and carry inventories to facilitate such transactions.

The gains and losses on such inventories, both realized and unrealized, are reported as principal transactions revenues.

6 unchanged sentences

We earn servicing fees from various banks for administrative services we provide related to our clients’ deposits that are swept to such banks as part of the Raymond James Bank Deposit Program, our multi-bank sweep program.

The amounts received from third-party banks are variable in nature and fluctuate based on client cash balances in the program, as well as the level of short-term interest rates and the interest paid to clients by the third-party banks on balances in the RJBDP.

The amounts received from third-party banks are variable in nature and fluctuate based on average client cash balances in the program, as well as the level of short-term interest rates and the interest paid to clients by the third-party banks on balances in the RJBDP.

The fees are earned over time as the related administrative services are performed and are received monthly.

2 unchanged sentences

Investment banking

We earn revenue from investment banking transactions, including public and private equity and debt financings, merger & acquisition advisory services, and other advisory services.

We earn revenues from investment banking transactions, including the underwriting and placement of public and private equity and debt securities, private capital fundraising, merger & acquisition advisory services, and other advisory services.

The fees we earn are generally based on the amount of the transaction (e.g., the amount financed), as well as our role in the transaction.

Underwriting revenues, which are typically deducted from the proceeds remitted to the issuer, are recognized on trade date if there is no uncertainty or contingency related to the amount to be received.

Fees from merger & acquisition and advisory assignments are generally recognized at the time the services related to the transaction are completed under the terms of the engagement.

Fees from merger & acquisition and advisory services are generally recognized at the time the services related to the transaction are completed under the terms of the engagement.

Fees for merger & acquisition and advisory services are typically received upfront, as non-refundable retainer fees, and/or upon completion of a transaction as a success fee.

Expenses related to investment banking transactions are generally deferred until the related revenue is recognized or the assignment is otherwise concluded.

Expenses related to investment banking transactions are generally deferred until the related revenues are recognized or the services are otherwise concluded.

Such expenses, when recognized, are included in “Professional fees” on our Consolidated Statements of Income and Comprehensive Income.

Cash and cash equivalents

Our cash equivalents include money market funds or highly liquid investments with maturities of 3 months or less as of our date of purchase, other than those held for trading purposes.

Our cash equivalents include money market funds or highly liquid investments with maturities of three months or less as of our date of purchase, other than those held for trading purposes.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Assets segregated for regulatory purposes and restricted cash

We segregate cash for regulatory and other purposes predominantly related to client activity.

Our broker-dealers carrying client accounts are generally subject to requirements to maintain cash or qualified securities on deposit in a segregated reserve account for the exclusive benefit of their clients.

7 unchanged sentences

(“RJ Ltd.”) holds client Registered Retirement Savings Plan funds in trust in accordance with Canadian retirement plan regulations.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Collateralized agreements and financings

1 unchanged sentence

We purchase securities under short-term agreements to resell (“reverse repurchase agreements”).

Additionally, we sell securities under agreements to repurchase (“repurchase agreements”).

Additionally, we sell securities under short-term agreements to repurchase (“repurchase agreements”).

Reverse repurchase agreements and repurchase agreements are accounted for as collateralized agreements and collateralized financings, respectively, and are carried at contractual amounts plus accrued interest.

6 unchanged sentences

Securities borrowed and securities loaned

We may act as an intermediary between broker-dealers and other financial institutions whereby we borrow securities from one counterparty and then either lend them to another counterparty or use them in our broker-dealer operations to cover short positions.

Where permitted, we have also loaned, to broker-dealers and other financial institutions, securities owned by the firm or our clients or others we have received as collateral.

5 unchanged sentences

See Note 7 for additional information regarding collateralized agreements and financings.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Financial instruments, financial instrument liabilities, at fair value

10 unchanged sentences

These instruments are generally valued using discounted cash flow techniques.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

GAAP requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when performing our fair value measurements.

The availability of observable inputs can vary from instrument to instrument and, in certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.

The availability of observable inputs can vary by instrument and, in certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.

In such cases, an instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

1 unchanged sentence

Valuation techniques and inputs

The fair values for certain of our financial instruments are derived using pricing models and other valuation techniques that involve management judgment.

The fair values of certain financial instruments are derived using pricing models and other valuation techniques that involve management judgment.

The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of our financial instruments.

1 unchanged sentence

In accordance with GAAP, the criteria used to determine whether the market for a financial instrument is active or inactive is based on the particular asset or liability.

For debt securities, our definition of actively traded is based on security type, considering liquidity and price transparency.

For equity securities, our definition of actively traded is based on average daily trading volume.

We have determined the market for certain other types of financial instruments to be uncertain or inactive as of both September 30, 2023 and 2022.

We have determined the market for other types of financial instruments to be uncertain or inactive as of both September 30, 2024 and 2023.

As a result, the valuation of these financial instruments included management judgment in determining the relevance and reliability of market information available.

6 unchanged sentences

When trading instruments are traded in secondary markets and quoted market prices for identical instruments do not exist, we utilize valuation techniques, including matrix pricing, to estimate fair value.

Matrix pricing generally utilizes spread-based models periodically re-calibrated to observable inputs such as market trades or to dealer price bids in similar securities in order to derive the fair value of the instruments.

Matrix pricing generally utilizes spread-based models periodically re-calibrated to observable inputs such as market trades or to dealer price bids in similar securities in order

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

to derive the fair value of the instruments.

Valuation techniques may also rely on other observable inputs such as yield curves, interest rates and expected principal prepayments and default probabilities.

4 unchanged sentences

Available-for-sale securities

Available-for-sale securities are classified at the date of purchase.

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

Available-for-sale securities, which are held in our Bank segment, are classified at the date of purchase.

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

Treasuries, and other securities which a re guaranteed by the U.S.

government or its agencies.

6 unchanged sentences

however, certain available-for-sale securities are classified within Level 1 of the fair value hierarchy.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Interest on available-for-sale securities is recognized in interest income on an accrual basis, with the related accrued interest not yet received reflected in “Other receivables” on our Consolidated Statements of Financial Condition.

Discounts are accreted and premiums are amortized as an adjustment to yield over the estimated average life of the security, after factoring in the impact of prepayments.

Unrealized gains or losses due to market factors on available-for-sale securities are recorded through other comprehensive income/(loss) (“OCI”), net of applicable taxes, and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”) on our Consolidated Statements of Financial Condition.

Unrealized gains or losses due to market factors on available-for-sale securities are recorded through other comprehensive income/(loss) (“OCI”), net of applicable taxes, and are thereafter presented in equity as a component of accumulated other comprehensive income/(loss) (“AOCI”) on our Consolidated Statements of Financial Condition.

Realized gains and losses on sales of available-for-sale securities are recognized using the specific identification method and are reflected in “Other” revenue in the period sold.

12 unchanged sentences

Such payments are referred to as “variation margin” and are considered to be settlement of the related derivatives.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Interest rate derivatives

7 unchanged sentences

Our fixed income business also holds to-be-announced security contracts that are accounted for as derivatives, which are classified within Level 1 of the fair value hierarchy.

We also facilitated matched book derivative transactions in which we entered into interest rate derivatives with clients.

For every matched book derivative we entered into with a client, we also entered into an offsetting derivative on terms that mirrored the client transaction with a credit support provider, which was a third-party financial institution.

Any collateral required to be exchanged under these matched book derivatives was administered directly between the client and the third-party financial institution.

Due to this pass-through transaction structure, we had completely mitigated the market and credit risk on these matched book derivatives.

As a result, matched book derivatives for which the fair value was in an asset position had an equal and offsetting derivative liability.

Fair value was determined using an internal pricing model which included inputs from independent pricing sources to project future cash flows related to each underlying derivative.

Since any changes in fair value were completely offset by a change in fair value of the offsetting derivative, there was no net impact on our Consolidated

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Statements of Income and Comprehensive Income from changes in the fair value of these derivatives.

During the year ended September 30, 2023, we exited such matched book derivative agreements.

We enter into primarily floating-rate advances from the Federal Home Loan Bank (“FHLB”) to, in part, fund lending and investing activities in our Bank segment and then enter into interest rate contracts which swap variable interest payments on a portion of such borrowings for fixed interest payments.

1 unchanged sentence

These interest rate swaps are designated as cash flow hedges and effectively fix a portion of our Bank segment’s cost of funds and mitigate a portion of the market risk associated with its lending and investing activities.

The gain or loss on our Bank segment’s cash flow hedges is recorded, net of tax, in shareholders’ equity as a component of AOCI and subsequently reclassified to earnings when the hedged transaction affects earnings, specifically upon the incurrence of interest expense on the hedged borrowings and deposits.

The gains or losses on our Bank segment’s cash flow hedges are recorded, net of tax, in shareholders’ equity as a component of AOCI and subsequently reclassified to earnings when the hedged transaction affects earnings, specifically upon the incurrence of interest expense on the hedged borrowings and deposits.

Hedge effectiveness is assessed at inception and at each reporting period utilizing regression analysis.

2 unchanged sentences

These third-party valuations are based on observable inputs such as time value and yield curves.

We validate these observable inputs by preparing an independent calculation using a secondary model.

We validate these observable inputs by preparing our own independent calculation using a secondary model.

Cash flows from hedging activities are included in the same category as the items being hedged.

4 unchanged sentences

The majority of these derivatives are designated as net investment hedges.

The gain or loss related to these designated net investment hedges is recorded, net of tax, in shareholders’ equity as part of the cumulative translation adjustment component of AOCI with such balance impacting “Other” revenues in the event the net investment is sold or substantially liquidated.

The gains or losses related to these designated net investment hedges are recorded, net of tax, in shareholders’ equity as part of the cumulative translation adjustment component of AOCI.

In the event the net investment is sold or substantially liquidated, the associated cumulative translation adjustment, including amounts related to the net investment hedge, are reclassified to “Other” revenues.

Gains and losses on undesignated derivative instruments are recorded in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income.

10 unchanged sentences

Treasuries, and term deposits are categorized within Level 1 of the fair value hierarchy.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Private equity investments consist primarily of investments in third-party private equity funds.

8 unchanged sentences

The fair values of the fractional share assets and liabilities are determined based on quoted prices in active markets and are classified within Level 1 of the fair value hierarchy.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Brokerage client receivables, net

1 unchanged sentence

Such receivables are generally collateralized by securities owned by the clients.

Brokerage client receivables are reported at their outstanding principal balance, net of any allowance for credit losses.

See the “Allowance for credit losses” section below for a discussion of our application of the practical expedient under the current expected credit losses (“CECL”) guidance for financial assets secured by collateral.

Securities beneficially owned by clients, including those that collateralize margin or other similar transactions, are not reflected on our Consolidated Statements of Financial Condition.

See Note 7 for additional information regarding this collateral.

Brokerage client receivables are reported at their outstanding principal balance, net of any allowance for credit losses.

See the “Allowance for credit losses” section below for a discussion of our application of the practical expedient under the CECL guidance for financial assets secured by collateral.

Other receivables, net

Other receivables primarily include receivables from brokers, dealers and clearing organizations, accrued fees from product sponsors, and accrued interest receivables.

Other receivables primarily include receivables from brokers, dealers and clearing organizations, receivables related to the RJBDP, accrued interest receivables, and accrued fees from product sponsors.

Receivables from brokers, dealers and clearing organizations primarily consist of cash deposits placed with clearing organizations, which includes cash deposited as initial margin, as well as receivables related to sales of securities which have traded but not yet settled including amounts receivable for securities failed to deliver.

11 unchanged sentences

Loan origination fees and direct costs, as well as premiums and discounts on loans that are not revolving, are capitalized and recognized in interest income using the effective interest method, taking into consideration scheduled payments and prepayments.

Loan discounts include fair value adjustments associated with our acquisition of TriState Capital Bank which totaled $ 145 million as of our June 1, 2022 acquisition date and will be accreted into interest income over the weighted-average life of the underlying loans, estimated to approximate four years as of the acquisition date, which may vary based on prepayments.

Loan discounts include fair value adjustments associated with our acquisition of TriState Capital Bank which are accreted into interest income over the weighted-average life of the underlying

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

loans, estimated to approximate four years as of the acquisition date, which may vary based on prepayments.

For revolving loans, the straight-line method is used based on the contractual term.

1 unchanged sentence

Interest income is recorded on an accrual basis.

We segregate our loan portfolio into six loan portfolio segments:

We segregate our loan portfolio into six loan portfolio segments, which also serve as classes of financing receivables for purposes of credit analysis.

These portfolio segments are:

SBL, C&I, CRE (primarily loans that are secured by income-producing properties and CRE construction loans), REIT (loans made to businesses that own or finance income-producing real estate), residential mortgage, and tax-exempt.

1 unchanged sentence

An insignificant portion of our SBL portfolio is collateralized by private securities or other financial instruments with a limited trading market.

These portfolio segments also serve as the portfolio loan classes for purposes of credit analysis.

See Note 8 for additional information on our bank loans held for investment.

See the “Allowance for credit losses” section below for information on our allowance policies.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Loans held for sale

7 unchanged sentences

These nonrecurring fair value measurements are classified within Level 2 of the fair value hierarchy.

Once the SBA loans are securitized into a pool, the respective securities are classified as trading instruments based on our intention to sell the securitizations and are carried at fair value.

Once the SBA loans are securitized into a pool, the respective securities are classified as trading instruments based on our intention to sell the securities and are carried at fair value.

Sales of the securitizations are accounted for as of settlement date, which is the date we have surrendered control over the transferred assets.

3 unchanged sentences

The fair value estimate is based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent.

These nonrecurring fair value measurements are classified within Level 2 or 3 of the fair value hierarchy.

These nonrecurring fair value measurements are classified within Level 2 or Level 3 of the fair value hierarchy.

Gains and losses on sales of residential mortgage loans held for sale, SBA loans that are not part of a securitized pool, and corporate loans transferred from the held for investment portfolio, are included as a component of “Other” revenues on our Consolidated Statements of Income and Comprehensive Income, while interest collected on these assets is included in “Interest income.”

8 unchanged sentences

The proceeds from repayment or liquidation of collateral are expected to satisfy the amounts drawn down under the existing letters of credit.

The allowance for potential credit losses associated with these unfunded lending commitments is included in “Other payables” on our Consolidated Statements of Financial Condition.

Refer to the “Allowance for credit losses” section that follows for a discussion of the reserve calculation methodology and Note 19 for further information about these commitments.

We recognize the revenue associated with corporate syndicated standby letters of credit, which is generally received quarterly, on a cash basis, the effect of which does not differ significantly from recognizing the revenue in the period the fee is earned.

Unused corporate line of credit fees are accounted for on an accrual basis.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Consolidated Financial Statements

The allowance for potential credit losses associated with these unfunded lending commitments is included in “Other payables” on our Consolidated Statements of Financial Condition.

Refer to the “Allowance for credit losses” section that follows for a discussion of the reserve calculation methodology and Note 19 for additional information about these commitments.

Unused corporate line of credit fees are accounted for on an accrual basis.

Loan modifications

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 borrowers experiencing financial difficulty are subject to our nonaccrual policies.

See the “Nonperforming assets” section below for information on our nonaccrual policies.

Prior to the adoption of ASU 2022-02 on October 1, 2023, loan modifications to borrowers experiencing financial difficulty, where such loans were restructured in a manner that granted a concession that would not normally be granted, were deemed to be troubled debt restructurings (“TDRs”).

Such loans were subject to our nonaccrual policies.

Nonperforming assets

Nonperforming assets are comprised of both nonperforming loans and other real estate owned.

Nonperforming loans include those loans which have been placed on nonaccrual status and certain accruing loans which are 90 days or more past due and in the process of collection.

Loans which have been restructured in a manner that grants a concession that would not normally be granted to a borrower experiencing financial difficulties are deemed to be troubled debt restructurings (“TDRs”).

Loans structured as TDRs which are placed on nonaccrual status are considered nonperforming loans.

Nonperforming loans include those loans which have been placed on nonaccrual status and any accruing loans which are 90 days or more past due and in the process of collection.

Loans of all classes are generally placed on nonaccrual status when we determine that full payment of all contractual principal and interest is in doubt or the loan is past due 90 days or more as to contractual interest or principal unless the loan, in our opinion, is well-secured and in the process of collection.

1 unchanged sentence

Interest is recognized using the cash method for SBL and substantially all residential mortgage loans, and the cost recovery method for corporate and tax-exempt loans thereafter until the loan qualifies for return to accrual status.

Most loans (including residential mortgage TDRs) are returned to an accrual status when the loans have been brought contractually current with the original or amended terms and have been maintained on a current basis for a reasonable period, generally six months .

However, corporate loan TDRs have generally been partially charged off and therefore remain on nonaccrual status until the loan is fully repaid or sold.

Most loans are returned to an accrual status when the loans have been brought contractually current with the original or amended terms and have been maintained on a current basis for a reasonable period, generally six months .

However, corporate loans that have been partially charged off generally remain on nonaccrual status until such loans are fully repaid or sold.

Other real estate acquired in the settlement of loans, including through, or in lieu of, loan foreclosure, is initially recorded at the lower of cost or fair value less estimated selling costs through a charge to the allowance for credit losses, thus establishing a new cost basis.

7 unchanged sentences

For C&I and tax-exempt loans, we evaluate all sources of repayment to arrive at the amount considered to be a loss and charged-off.

Corporate banking and credit risk managers also meet regularly to review criticized loans (i.e., loans that are rated special mention or worse as defined by bank regulators).

Corporate banking and credit risk managers also meet regularly to review criticized loans (i.e., loans that are rated special

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

mention or worse as defined by bank regulators).

Additional charge-offs are taken when the value of the collateral changes or there is an adverse change in the expected cash flows.

3 unchanged sentences

The agent bank’s regulator reviews a portion of SNC loans on a semi-annual basis and provides a synopsis of each loan’s regulatory classification, including loans that are designated for nonaccrual status and directed charge-offs.

We must be at least as critical with our nonaccrual designations, directed charge-offs, and classifications, potentially impacting our allowance for credit losses and charge-offs.

Corporate loans are subject to our internal review procedures and regulatory review by the Board of Governors of the Federal Reserve System (“the Fed”) and either the Florida Office of Financial Regulation or the Pennsylvania Department of Banking and Securities (“PDBS”) as part of our respective banks’ regulatory examinations.

We must be at least as critical as the agent bank’s regulator with our nonaccrual designations, directed charge-offs, and classifications, potentially impacting our allowance for credit losses and charge-offs.

Corporate loans are subject to our internal review procedures and regulatory review by the Board of Governors of the Federal Reserve System (“the Fed”) and either the Florida Office of Financial Regulation or the Pennsylvania Department of Banking and Securities as part of our respective banks’ regulatory examinations.

Substantially all residential mortgage loans over 60 days past due are reviewed to determine loan status, collection strategy and charge-off recommendations.

3 unchanged sentences

If a loan remains in pre-foreclosure status for more than nine months , an updated valuation is obtained to determine if further charge-offs are necessary.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Loans to financial advisors, net

7 unchanged sentences

We present the outstanding balance of loans to financial advisors on our Consolidated Statements of Financial Condition, net of the allowance for credit losses.

Refer to the allowance for credit losses section that follows for further information related to our allowance for credit losses on our loans to financial advisors.

Refer to the allowance for credit losses section that follows for additional information related to our allowance for credit losses on our loans to financial advisors.

See Note 9 for additional information on our loans to financial advisors.

12 unchanged sentences

We use multiple methodologies in estimating an allowance for credit losses and our approaches may differ by the subsidiary which holds the asset, the type of financial asset and the risk characteristics within each financial asset type.

Our estimates are based on ongoing evaluations of the portfolio, the related credit risk characteristics, and the overall economic and environmental conditions affecting the financial assets.

Our estimates are based on ongoing evaluations of the portfolio, the related credit risk characteristics, and the overall economic and

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

environmental conditions affecting the financial assets.

For certain of our financial assets with collateral maintenance provisions (e.g., SBL, collateralized agreements, and margin loans), we apply the practical expedient allowed under the CECL guidance in estimating an allowance for credit losses.

6 unchanged sentences

Our provision or benefit for credit losses for outstanding bank loans is included in “Bank loan provision/(benefit) for credit losses” on our Consolidated Statements of Income and Comprehensive Income and our provision or benefit for credit losses for all other financing receivables, including loans to financial advisors, and unfunded lending commitments, is included in “Other” expense.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

We generally estimate the allowance for credit losses on our loan portfolios using credit risk models which incorporate relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable economic forecasts.

25 unchanged sentences

and the routine time delay between when economic data is gathered, analyzed and distributed by our service providers and current macroeconomic developments.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Held for investment bank loans

4 unchanged sentences

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TriState Capital Bank:

3 unchanged sentences

Each quarter, the relevancy of historical loss information is assessed and management considers any necessary adjustments.

Loss rates are based on historical averages for each loan pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables such as GDP, unemployment rates, corporate bond credit spreads and commercial property values, which management considers to be both reasonable and supportable.

Loss rates are based on historical averages for each loan pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables, including GDP, unemployment rates, corporate bond credit spreads, and commercial property values, which management considers to be both reasonable and supportable.

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

16 unchanged sentences

We first determine whether it is more likely than not that we will sell the impaired securities, giving consideration to current and forecasted liquidity requirements, regulatory and capital requirements, and our securities portfolio management.

If it is more likely than not that we will sell an available-for-sale security with a fair value below amortized cost before recovery, the security’s book basis is written down to fair value through earnings.

If it is more likely than not that we will sell an available-for-sale security with a fair value below amortized cost

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

before recovery, the security’s book basis is written down to fair value through earnings.

For available-for-sale debt securities that it is more likely than not that we will not sell before recovery, a provision for credit losses is recorded through earnings for the amount of the valuation decline below book basis that is attributable to credit losses.

4 unchanged sentences

At September 30, 2024, based on our assessment of those securities not guaranteed by the U.S government or its agencies, we did not recognize an allowance for credit losses.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Identifiable intangible assets, net

27 unchanged sentences

Notes to Consolidated Financial Statements

Other assets is primarily comprised of investments in company-owned life insurance, property and equipment, net, right-of-use assets (“ROU assets”) associated with leases, prepaid expenses, FHLB stock, Federal Reserve Bank (“FRB”) stock, investments in real estate partnerships held by consolidated VIEs, and certain other investments, primarily held in our Bank segment.

Other assets is primarily comprised of investments in company-owned life insurance, property and equipment, net, ROU lease assets, prepaid expenses, investments in FHLB and FRB stock, investments in real estate partnerships held by consolidated VIEs, and certain other investments which are not carried at fair value on a recurring basis.

See Note 12 for additional information.

Other assets also includes client-owned fractional shares for which we act in a principal capacity.

See our client-owned fractional shares policy above for further information.

See our client-owned fractional shares policy above for additional information.

We maintain investments in company-owned life insurance policies utilized to indirectly fund certain non-qualified deferred compensation plans and other employee benefit plans.

6 unchanged sentences

These funds invest in housing project limited partnerships or limited liability companies (“LLCs”) which purchase and develop affordable housing properties generally qualifying for federal and state low-income housing tax credits and/or provide a mechanism for banks and other institutions to meet certain regulatory obligations.

The investments in project partnerships of all of the LIHTC fund VIEs which require consolidation are included in “Other assets” on our Consolidated Statements of Financial Condition.

The investments in project partnerships of all of the LIHTC and other fund VIEs which require consolidation are included in “Other assets” on our Consolidated Statements of Financial Condition.

Our Bank segment holds investments which deliver tax benefits, including in LIHTC funds, some of which are managed by RJAHI.

6 unchanged sentences

Property and equipment primarily consists of software, buildings, certain leasehold improvements, and furniture.

Software includes both purchased software and internally developed software that has been placed in service, including certain software projects where development is in progress.

Software includes both purchased software and internally developed software that has been placed in service, as well as certain software projects where development is in progress.

Buildings primarily consists of owned facilities.

1 unchanged sentence

Equipment primarily consists of communications and technology hardware.

Depreciation of assets (other than land, which is not depreciated) is primarily calculated using the straight-line method over the estimated useful lives of the assets, within ranges outlined in the following table.

Depreciation of assets (other than land, which is not depreciated) is primarily calculated using the straight-line method over the estimated useful lives of the assets, generally within ranges outlined in the following table.

Asset type Estimated useful life

18 unchanged sentences

Substantially all of our leases are operating leases.

If the arrangement is determined to be a lease, we recognize a ROU asset in “Other assets” and a corresponding lease liability in “Other payables” on our Consolidated Statements of Financial Condition.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease.

We elected the practical expedient, where leases with an initial or acquired term of 12 months or less are not recorded as an ROU asset or lease liability.

If the arrangement is determined to be a lease, we recognize a ROU lease asset in “Other assets” and a corresponding lease liability in “Other payables” on our Consolidated Statements of Financial Condition.

ROU lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease.

We elected the practical expedient, where leases with an initial or acquired term of 12 months or less are not recorded as a ROU lease asset or lease liability.

Our lease terms include any noncancelable periods and may reflect periods covered by options to extend or terminate when it is reasonably certain that we will exercise those options.

We record our lease ROU assets at the amount of the lease liability plus any prepaid rent, amounts paid for lessor-owned leasehold improvements, and initial direct costs, less any lease incentives and accrued rent.

We record our ROU lease assets at the amount of the lease liability plus any prepaid rent, amounts paid for lessor-owned leasehold improvements, and initial direct costs, less any lease incentives and accrued rent.

We record lease liabilities at commencement date (or acquisition date, for leases assumed through acquisitions) based on the present value of lease payments over the lease term, which is discounted using our commencement date or acquisition date incremental borrowing rate, or at the imputed rate within the lease, as appropriate.

2 unchanged sentences

For our real estate leases, we elected the practical expedient to account for the lease and non-lease components as a single lease.

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

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

See Note 14 for additional information on our leases.

1 unchanged sentence

Bank deposits include money market accounts, savings accounts, interest-bearing and non-interest-bearing demand deposits, and certificates of deposit held at Raymond James Bank and TriState Capital Bank.

Raymond James Bank deposits include deposits that are swept from the investment accounts of PCG clients through the RJBDP which are included in money market and savings accounts, as well as deposits associated with our Enhanced Savings Program (“ESP”) which are primarily included within interest-bearing demand deposit totals.

TriState Capital Bank’s deposits are generally comprised of money market and savings accounts, including RJBDP deposits, and interest-bearing demand deposits.

TriState Capital Bank’s deposits are primarily comprised of money market and savings accounts, including RJBDP deposits, and interest-bearing demand deposits.

Deposits are stated at the principal amount outstanding.

12 unchanged sentences

the amount of the claim;

the amount of the loss in the client’s account;

the amount of the loss experienced by the client;

the basis and validity of the claim;

18 unchanged sentences

We maintain various deferred compensation plans for the benefit of certain employees and independent contractors that provide a return to the participant based upon the performance of various referenced investments.

For the Voluntary Deferred Compensation Plan (“VDCP”), Long-Term Incentive Plan (“LTIP”), and certain other plans, we purchase and hold company-owned life insurance policies on the lives of certain current and former participants to earn a competitive rate of return for participants and to provide a source of funds available to satisfy our obligations under the plan.

For the Voluntary Deferred Compensation Plan (“VDCP”), Long-Term Incentive Plan (“LTIP”), and certain other plans, we purchase and hold company-owned life insurance policies on the lives of certain current and former participants to provide a source of funds available to satisfy our obligations under the plan.

See Note 12 for information regarding the carrying value of such policies.

17 unchanged sentences

See Note 18 for additional information on our income taxes.

We hold equity investments in certain structures which deliver tax benefits, including LIHTC funds, Historic Tax Credit (“HTC”) funds, and a Solar Tax Credit investment (“STC”).

For those LIHTC, HTC, and STC investments that qualify for application of the proportional amortization method, we apply such method.

Under the proportional amortization method, such investment is amortized in proportion to the allocation of tax benefits received in each period, and the investment amortization and the tax benefits are presented on a net basis within “Provision for income taxes” on our Consolidated Statements of Income and Comprehensive Income.

We hold equity investments in certain structures which deliver tax benefits, including LIHTC funds, historic tax credit (“HTC”) funds, and renewable energy tax credit investments.

For those LIHTC, HTC, and renewable energy tax credit investments that qualify for application of the proportional amortization method, we apply such method.

Under the proportional amortization method, such investment is amortized in proportion to the allocation of tax benefits received in each year, and the investment amortization and the tax benefits are presented on a net basis within “Provision for income taxes” on our Consolidated Statements of Income and Comprehensive Income.

The income tax credits and other income tax benefits received related to such investments are included in “Cash flows from operating activities” on our Consolidated Statements of Cash Flows.

When our tax credit equity investments do not qualify for the proportional amortization method, we record the investment amortization, through the application of the equity method of accounting, in “Other” expenses on our Consolidated Statements of Income and Comprehensive Income and the federal tax credits that result from such investments are recorded using the flow-through method where the benefits reduce our provision for income taxes in the year the tax credits are earned.

As a result, inclusion of these tax credits may not align to the year in which we amortize the related investments.

Other income or losses generated from such investments are generally included in “Other” income or “Other” expenses, respectively, on our Consolidated Statements of Income and Comprehensive Income and in “ Cash flows from operations ” on our Consolidated Statements of Cash Flows.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Consolidated Financial Statements

Where our tax credit equity investments do not qualify for the proportional amortization method, we record the investment amortization, through the application of the equity method of accounting, in “Other” expenses on our Consolidated Statements of Income and Comprehensive Income and the federal tax credits that result from such investments reduce our provision for income taxes in the year the tax credits are earned.

As a result, inclusion of these tax credits may not align to the year in which we amortize the related investments.

Other income or losses generated from such investments are generally included in “Other” income or “Other” expenses, respectively, on our Consolidated Statements of Income and Comprehensive Income and in “Cash flows from operations” on our Consolidated Statements of Cash Flows.

See “Recent accounting developments” of this Note 2 for a discussion of our adoption of FASB amended guidance related to accounting for investments in tax credit structures using the proportional amortization method (ASU 2023-02).

Earnings per share (“EPS”)

1 unchanged sentence

Earnings attributable to common shareholders represents net income reduced by preferred stock dividends as well as the allocation of earnings and dividends to participating securities.

Diluted EPS is similar to basic EPS, but adjusts for the dilutive effect of outstanding stock options, restricted stock awards (“RSAs”), and certain restricted stock units (“RSUs”) by application of the treasury stock method.

Diluted EPS is calculated similarly to basic EPS adjusted for the dilutive effect of outstanding stock options and certain restricted stock units (“RSUs”) by application of the treasury stock method.

Evaluation of VIEs to determine whether consolidation is required

16 unchanged sentences

In both instances, RJAHI, as the managing member or general partner of the fund, is responsible for overseeing the fund’s operations.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

RJAHI sponsors two general types of tax credit funds designed to deliver tax benefits to the investors.

5 unchanged sentences

RJAHI earns fees from the fund for its services in organizing the fund, identifying and acquiring the project partnership investments and ongoing asset management, and receives a share of any residuals arising from sale of project partnerships upon the termination of the fund.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

In single investor funds that deliver tax benefits, RJAHI has concluded that the one single investor member or limited partner in such funds, in nearly all instances, has significant participating rights over the activities that most significantly impact the economics of the fund.

20 unchanged sentences

We have determined we are a passive limited partner investor, and thus, we do not have the power to make decisions that most significantly affect the economic performance of such VIEs.

Accordingly, in such circumstances, we have determined we are not the primary beneficiary and therefore we do not consolidate the VIE.

Accordingly, in such circumstances, we have determined we are not the primary beneficiary and therefore we do not consolidate these VIEs.

Restricted Stock Trust Fund

2 unchanged sentences

We are deemed to be the primary beneficiary and, accordingly, consolidate this trust fund.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Our financial statements include the operations of acquired businesses starting from the completion of the acquisition.

3 unchanged sentences

The fair value estimates are based on available historical information and on future expectations and assumptions deemed reasonable by management, but are inherently uncertain as they pertain to forward-looking views of our businesses, client behavior, and market conditions.

We consider the income, market and cost approaches and place reliance on the approach or approaches deemed most appropriate to estimate the fair value of acquired intangible assets.

We consider the income, market and cost approaches and place reliance on the approach or approaches deemed most

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

appropriate to estimate the fair value of acquired intangible assets.

Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability) and the discount rate applied to the cash flows.

3 unchanged sentences

Finite-lived intangible assets are amortized over their estimated useful life.

Refer to Note 3 and our goodwill and intangible assets policies above for additional information.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Refer to Note 3, Note 11, and our goodwill and intangible assets policies above for additional information.

NOTE 3 – ACQUISITIONS

Acquisitions completed during the year ended September 30, 2023

There were no significant acquisitions completed during the year ended September 30, 2023.

Acquisitions completed during the years ended September 30, 2024 and 2023

There were no significant acquisitions completed during the years ended September 30, 2024 and 2023.

Acquisitions completed during the year ended September 30, 2022

15 unchanged sentences

See Note 20 for additional details on this preferred stock and the redemption of the Series A Preferred Stock.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Furthermore, as a component of our total purchase consideration for TriState Capital on June 1, 2022, in accordance with the terms of the acquisition agreement, 551 thousand RJF RSAs were issued at terms that mirrored RSAs of TriState Capital which were outstanding as of the acquisition date.

7 unchanged sentences

The fair value of the Note on the acquisition date was determined using a discounted cash flow analysis based on the incremental borrowing rates for similar types of instruments at the acquisition date.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

On July 1, 2022, we completed our acquisition of SumRidge Partners, LLC (“SumRidge Partners”) using cash on hand as of the acquisition date.

3 unchanged sentences

The goodwill associated with the SumRidge Partners acquisition, which has been allocated to our Capital Markets segment and primarily represents synergies from combining SumRidge Partners with our existing businesses, is deductible for tax purposes over 15 years.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

We accounted for our completed acquisitions of Charles Stanley, TriState Capital, and SumRidge Partners as business combinations in accordance with GAAP.

43 unchanged sentences

Notes to Consolidated Financial Statements

Our Consolidated Statements of Income and Comprehensive Income included combined net revenues attributable to Charles Stanley, TriState Capital, and SumRidge Partners of $ 862 million and $ 328 million for the years ended September 30, 2023 and 2022, respectively, and combined pre-tax income of $ 268 million and $ 38 million for the years ended September 30, 2023 and 2022, respectively.

Combined pre-tax income for the year ended September 30, 2022 included an initial provision for credit losses on loans and lending commitments acquired as part of the TriState Capital acquisition of $ 26 million (included in “Bank loan provision/(benefit) for credit losses”) and $ 5 million (included in “Other” expense), respectively.

These provisions were required under GAAP to be recorded in earnings in the reporting period following the acquisition date.

Determination of fair value

41 unchanged sentences

All other assets acquired :

All other assets acquired primarily included company-owned life insurance policies, ROU assets, investments in FHLB stock, and investments in LIHTC funds.

All other assets acquired primarily included company-owned life insurance policies, ROU lease assets, investments in FHLB stock, and investments in LIHTC funds.

The pre-close historical carrying values of company-owned life insurance policies, investments in FHLB stock and investments in LIHTC funds were used as a reasonable estimate of fair value.

20 unchanged sentences

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 Consolidated Statements of Financial Condition.

See Note 6 for additional information.

$ in millions Level 1 Level 2 Level 3 Netting

adjustments Balance as of September 30, 2023

adjustments (1)

Balance as of September 30, 2024

Assets at fair value on a recurring basis:

6 unchanged sentences

49 144 — — 193

Agency MBS, CMOs, and asset-backed securities (“ABS”) — 35 — — 35

Agency mortgage-backed securities (“MBS”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABS”) — 205 — — 205

Non-agency CMOs and ABS — 95 — — 95

10 unchanged sentences

Foreign exchange

Other — — 4 — 4

Total derivative assets

17 unchanged sentences

243 6 — — 249

Agency MBS and CMOs — 26 — — 26

Total debt securities 248 630 — — 878

171 515 — — 686

Equity securities

12 unchanged sentences

$ in millions Level 1 Level 2 Level 3 Netting

adjustments Balance as of September 30, 2022

adjustments (1)

Balance as of September 30, 2023

Assets at fair value on a recurring basis:

50 unchanged sentences

$ 312 $ 1,080 $ — $ ( 88 ) $ 1,304

(1) Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Consolidated Statements of Financial Condition.

See Note 6 for additional information.

(2) Our available-for-sale securities primarily consist of agency MBS, agency CMOs and U.S.

11 unchanged sentences

Level 3 instruments at fair value

Financial assets Financial

Trading assets Other investments Derivative liabilities

$ in millions Other All other Other

Financial assets

Trading assets Derivative assets Other investments

$ in millions Other Other All other

Fair value beginning of year

$ 1 $ 29 $ ( 3 )

Total gains/(losses) included in earnings

1 unchanged sentence

Sales and distributions

( 101 ) — ( 20 )

Out of Level 3 — — —

1 unchanged sentence

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

$ ( 3 ) $ 4 $ —

Year ended September 30, 2023

8 unchanged sentences

Sales and distributions

( 122 ) ( 73 ) —

Out of Level 3 — — —

Fair value end of year

$ 1 $ 29 $ ( 3 )

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

$ — $ 2 $ ( 2 )

As of both September 30, 2023 and September 30, 2022, 14 % of our assets and 2 % of our liabilities were measured at fair value on a recurring basis, and Level 3 assets represented less than 1 % of our assets measured at fair value on a recurring basis.

As of September 30, 2024, 12 % 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 September 30, 2024 and 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

3 unchanged sentences

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.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Consolidated Financial Statements

Our investments are monetized through the liquidation of underlying assets of fund investments, the timing of which is uncertain.

The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio.

21 unchanged sentences

Recovery rate 0 % - 37 % ( 37 %)

Loans held for sale $ 2 $ — $ 2 N/A N/A N/A

September 30, 2023

60 unchanged sentences

Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies current interest rates based on the remaining term of the deposit.

As of September 30, 2023, these fixed-rate certificates of deposit were classified as Level 2 under the fair value hierarchy.

Fixed-rate certificates of deposit were classified as Level 2 under the fair value hierarchy.

Brokerage client payables and other payables are recorded at amounts that approximate fair value and are classified as Level 2 under the fair value hierarchy.

8 unchanged sentences

NOTE 5 – AVAILABLE-FOR-SALE SECURITIES

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

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

8 unchanged sentences

1,394 1 ( 170 ) 1,225

Treasuries 706 — ( 2 ) 704

Other agency obligations 565 — ( 6 ) 559

Non-agency residential MBS 553 1 ( 27 ) 527

Treasuries 1,261 — ( 21 ) 1,240

Corporate bonds 107 1 ( 2 ) 106

8 unchanged sentences

1,448 — ( 265 ) 1,183

U.S Treasuries 1,261 — ( 21 ) 1,240

Other agency obligations 710 — ( 31 ) 679

Non-agency residential MBS 527 — ( 64 ) 463

U.S Treasuries 1,014 — ( 28 ) 986

Corporate bonds 140 — ( 6 ) 134

2 unchanged sentences

$ 10,433 $ — $ ( 1,252 ) $ 9,181

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

The amortized costs and fair values in the preceding table exclude $ 23 million and $ 28 million of accrued interest on available-for-sale securities as of September 30, 2024 and 2023, respectively, which was included in “ Other receivables, net ” on our Consolidated Statements of Financial Condition.

See Note 7 for additional information regarding available-for-sale securities pledged with the FHLB and FRB.

2 unchanged sentences

Notes to Consolidated Financial Statements

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

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

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

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

As a result, as of September 30, 2023, the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 4.2 years.

As a result, the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 3.8 years as of September 30, 2024.

September 30, 2024

4 unchanged sentences

Amortized cost $ 1 $ 87 $ 1,696 $ 2,363 $ 4,147

Carrying value $ — $ 120 $ 1,886 $ 2,205 $ 4,211

$ 1 $ 85 $ 1,583 $ 2,154 $ 3,823

Weighted-average yield 2.08 % 2.53 % 1.29 % 2.05 % 1.75 %

1 unchanged sentence

Amortized cost $ 71 $ 908 $ 387 $ 49 $ 1,415

Carrying value $ 18 $ 800 $ 396 $ 39 $ 1,253

$ 70 $ 854 $ 332 $ 40 $ 1,296

Weighted-average yield 2.85 % 1.48 % 1.18 % 1.87 % 1.48 %

Amortized cost $ — $ 4 $ 34 $ 1,356 $ 1,394

Carrying value $ — $ 8 $ 37 $ 1,138 $ 1,183

$ — $ 4 $ 31 $ 1,190 $ 1,225

Weighted-average yield — % 2.27 % 1.51 % 1.86 % 1.85 %

Other agency obligations

Amortized cost $ 467 $ 239 $ — $ — $ 706

Carrying value $ 88 $ 509 $ 73 $ 9 $ 679

$ 466 $ 238 $ — $ — $ 704

Weighted-average yield 3.81 % 4.61 % — % — % 4.08 %

Non-agency residential MBS

Other agency obligations

Amortized cost $ 257 $ 272 $ 28 $ 8 $ 565

Carrying value $ — $ — $ — $ 463 $ 463

$ 254 $ 269 $ 27 $ 9 $ 559

Weighted-average yield 2.70 % 3.70 % 2.42 % 3.07 % 3.17 %

Non-agency residential MBS

Amortized cost $ — $ — $ — $ 553 $ 553

Carrying value $ 740 $ 500 $ — $ — $ 1,240

$ — $ — $ — $ 527 $ 527

Weighted-average yield — % — % — % 4.35 % 4.35 %

1 unchanged sentence

Amortized cost $ 7 $ 77 $ 23 $ — $ 107

Carrying value $ 30 $ 83 $ 21 $ — $ 134

$ 7 $ 76 $ 23 $ — $ 106

Weighted-average yield 3.48 % 5.71 % 5.02 % — % 5.41 %

Amortized cost $ — $ 5 $ 4 $ 10 $ 19

Carrying value $ — $ 5 $ 4 $ 9 $ 18

$ — $ 5 $ 5 $ 10 $ 20

Weighted-average yield — % 7.29 % 2.68 % 7.72 % 6.36 %

2 unchanged sentences

$ 803 $ 1,592 $ 2,172 $ 4,339 $ 8,906

Carrying value

$ 798 $ 1,531 $ 2,001 $ 3,930 $ 8,260

6 unchanged sentences

Less than 12 months 12 months or more Total

$ in millions Estimated

fair value Unrealized

losses Estimated

fair value Unrealized

losses Estimated

fair value Unrealized

$ in millions Fair value

losses Fair value

September 30, 2024

2 unchanged sentences

Agency CMOs 30 — 1,114 ( 170 ) 1,144 ( 170 )

Treasuries 475 — 229 ( 2 ) 704 ( 2 )

Other agency obligations 10 — 539 ( 6 ) 549 ( 6 )

Non-agency residential MBS — — 417 ( 27 ) 417 ( 27 )

Treasuries 120 — 995 ( 21 ) 1,115 ( 21 )

Corporate bonds — — 42 ( 2 ) 42 ( 2 )

5 unchanged sentences

Agency CMOs — — 1,183 ( 265 ) 1,183 ( 265 )

Treasuries 120 — 995 ( 21 ) 1,115 ( 21 )

Other agency obligations 97 ( 1 ) 582 ( 30 ) 679 ( 31 )

Non-agency residential MBS 62 ( 1 ) 401 ( 63 ) 463 ( 64 )

Treasuries 982 ( 28 ) 4 — 986 ( 28 )

Corporate bonds 13 — 78 ( 6 ) 91 ( 6 )

3 unchanged sentences

At September 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 $ 4.20 billion and $ 2.55 billion, respectively, and fair values of $ 3.85 billion and $ 2.31 billion, respectively.

During the year ended September 30, 2023, there were no sales of available-for-sale securities.

During the years ended September 30, 2022 and 2021, we received proceeds of $ 52 million and $ 969 million, respectively, from sales of available-for-sale securities resulting in insignificant gains.

There were no sales of available-for-sale securities during the years ended September 30, 2024 and 2023.

During the year ended September 30, 2022, we received proceeds of $ 52 million from sales of available-for-sale securities resulting in insignificant gains.

RAYMOND JAMES FINANCIAL, INC.

10 unchanged sentences

Derivatives not designated as hedging instruments

Interest rate - other (1)

$ 509 $ 576 $ 18,270 $ 462 $ 535 $ 14,647

Interest rate - matched book (2)

Interest rate (1)

$ 336 $ 346 $ 20,629 $ 509 $ 576 $ 18,270

3 unchanged sentences

Derivatives designated as hedging instruments

Interest rate - other 8 — 1,200 12 — 1,050

Interest rate

2 — 1,250 8 — 1,200

Foreign exchange

15 unchanged sentences

$ 98 $ 224 $ 134 $ 490

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

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

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

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

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

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

8 unchanged sentences

We expect to reclassify $ 14 million of interest expense out of AOCI and into earnings within the next 12 months.

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

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

RAYMOND JAMES FINANCIAL, INC.

14 unchanged sentences

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

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

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

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

6 unchanged sentences

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

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

The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that were in a liability position was not significant at either September 30, 2024 or 2023.

RAYMOND JAMES FINANCIAL, INC.

24 unchanged sentences

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 Consolidated Statements of Financial Condition.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Repurchase agreements and securities loaned accounted for as secured borrowings

The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings.

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

September 30, 2023

Repurchase agreements:

Government and agency obligations $ 122 $ — $ — $ — $ 122

Agency MBS and agency CMOs 35 — — — 35

Total repurchase agreements

157 — — — 157

Securities loaned:

Equity securities 180 — — — 180

Total collateralized financings $ 337 $ — $ — $ — $ 337

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.

September 30,

$ in millions 2024 2023

Repurchase agreements:

2 unchanged sentences

Total repurchase agreements

294 — — — 294

Securities loaned:

1 unchanged sentence

Total collateralized financings $ 938 $ 337

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Collateral received and pledged

8 unchanged sentences

Encumbered assets

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

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

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

During the year ended September 30, 2023, we increased our borrowing capacity with the FHLB through the pledge of additional available-for-sale securities.

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

See Note 16 for additional information regarding our outstanding FHLB advances.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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

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

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

September 30,

2 unchanged sentences

Did not have the right to deliver or repledge $ 66 $ 63

Bank loans, net pledged with the:

FHLB $ 9,400 $ 8,009

Total bank loans, net pledged with the FHLB and FRB $ 10,166 $ 8,800

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

The FRB does not have the ability to sell or repledge such securities.

For additional information regarding our outstanding FHLB advances see Note 16.

The following table presents information about our assets that have been pledged with the FHLB or FRB.

September 30,

$ in millions 2024 2023

Assets pledged with the FHLB or FRB:

Available-for-sale securities $ 3,979 $ 3,897

Bank loans 11,794 10,166

Total assets pledged with the FHLB or FRB $ 15,773 $ 14,063

NOTE 8 – BANK LOANS, NET

6 unchanged sentences

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

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, 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.

As it pertains to TriState Capital Bank’s

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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, 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.

15 unchanged sentences

Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 214 $ 200

(1) Bank loans, net as of September 30, 2023 and September 30, 2022 are presented net of $ 52 million and $ 112 million, respectively, of net unamortized discount, unearned income, and deferred loan fees and costs.

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

See Note 3 for additional information.

See Note 7 for additional information regarding bank loans, net pledged with the FHLB and FRB and Note 16 for additional information regarding borrowings from the FHLB.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

See Note 7 for additional information regarding bank loans pledged with the FHLB and FRB and Note 16 for additional information regarding borrowings from the FHLB.

Held for sale loans

We originated or purchased $ 2.74 billion, $ 3.38 billion (exclusive of the loans acquired on June 1, 2022 in our acquisition of TriState Capital Bank), and $ 2.15 billion of loans held for sale during the years ended September 30, 2023, 2022, and 2021, respectively.

We originated or purchased $ 2.80 billion, $ 2.74 billion, and $ 3.38 billion (exclusive of the loans acquired on June 1, 2022 in our acquisition of TriState Capital Bank) of loans held for sale during the years ended September 30, 2024, 2023, and 2022, respectively.

The majority of these loans were purchases of the guaranteed portions of 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 $ 835 million, $ 1.29 billion, and $ 973 million for the years ended September 30, 2023, 2022 and 2021, respectively.

Proceeds from the sales of these loans held for sale and not securitized amounted to $ 618 million, $ 835 million, and $ 1.29 billion for the years ended September 30, 2024, 2023 and 2022, respectively.

Net gains resulting from such sales were insignificant for each of the years ended September 30, 2024, 2023, and 2022.

13 unchanged sentences

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

Aging analysis of loans held for investment

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Past due, nonaccrual, and modified loans

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

21 unchanged sentences

The preceding table includes $ 89 million and $ 96 million at September 30, 2024 and 2023, respectively, of nonaccrual loans which were current pursuant to their contractual terms.

TDRs in the preceding table were $ 21 million, $ 3 million, and $ 10 million for C&I loans, CRE loans, and residential first mortgage loans, respectively, at September 30, 2023, and $ 11 million, $ 9 million, and $ 10 million for C&I loans, CRE loans, and residential first mortgage loans, respectively, at September 30, 2022.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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.

Loans to borrowers experiencing financial difficulty which were modified during the year ended September 30, 2024 were not significant.

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 Consolidated Statements of Financial Condition, was insignificant at both September 30, 2024 and 2023.

4 unchanged sentences

September 30,

Loan type ($ in millions)

$ in millions

Nature of collateral 2024 2023

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

CRE loans Office, multi-family residential, healthcare, industrial, and retail real estate $ 47 $ 21

CRE loans Office, multi-family residential, healthcare, medical office, and industrial real estate $ 115 $ 47

Residential mortgage loans Single family homes $ 8 $ 5

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

CRE collateral dependent loans as of September 30, 2024 included certain loans that were placed on nonaccrual status with an associated allowance during the year ended September 30, 2024.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Credit quality indicators

16 unchanged sentences

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

September 30, 2023

As of and for the year ended September 30, 2024

Loans by origination fiscal year

6 unchanged sentences

Total SBL $ 133 $ 30 $ 15 $ 76 $ 27 $ 52 $ 15,900 $ 16,233

Gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Pass $ 616 $ 454 $ 1,178 $ 716 $ 586 $ 3,287 $ 2,966 $ 9,803

3 unchanged sentences

Total C&I loans $ 616 $ 458 $ 1,179 $ 716 $ 686 $ 3,318 $ 2,980 $ 9,953

Gross charge-offs

$ — $ — $ — $ 3 $ 4 $ 38 $ — $ 45

Pass $ 873 $ 1,156 $ 2,082 $ 930 $ 706 $ 1,111 $ 435 $ 7,293

3 unchanged sentences

Total CRE loans $ 873 $ 1,244 $ 2,167 $ 935 $ 729 $ 1,216 $ 451 $ 7,615

Gross charge-offs

$ — $ — $ — $ — $ — $ 21 $ — $ 21

Pass $ 172 $ 250 $ 167 $ 135 $ 55 $ 195 $ 564 $ 1,538

3 unchanged sentences

Total REIT loans $ 172 $ 269 $ 167 $ 135 $ 95 $ 195 $ 683 $ 1,716

Gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Residential mortgage loans

4 unchanged sentences

Total residential mortgage loans $ 1,373 $ 1,637 $ 2,734 $ 1,494 $ 858 $ 1,277 $ 39 $ 9,412

Gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

Tax-exempt loans

4 unchanged sentences

Total tax-exempt loans $ 62 $ 57 $ 248 $ 153 $ 52 $ 766 $ — $ 1,338

Gross charge-offs

$ — $ — $ — $ — $ — $ — $ — $ —

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

8 unchanged sentences

Substandard (1)

— — — — — — 24 24

Doubtful — — — — — — — —

27 unchanged sentences

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

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

RAYMOND JAMES FINANCIAL, INC.

4 unchanged sentences

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

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

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

September 30, 2024

41 unchanged sentences

Balance at beginning of year $ 3 $ 226 $ 87 $ 21 $ 57 $ 2 $ 396

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

Provision/(benefit) for credit losses 4 32 84 ( 5 ) 17 — 132

Initial provision for credit losses on non-PCD loans acquired with TriState Capital Bank

2 5 19 — — — 26

Provision/(benefit) for credit losses ( 3 ) 57 — ( 1 ) 21 — 74

Total provision/(benefit) for credit losses ( 1 ) 62 19 ( 1 ) 21 — 100

Net (charge-offs)/recoveries:

7 unchanged sentences

Balance at beginning of year $ 4 $ 191 $ 66 $ 22 $ 35 $ 2 $ 320

Impact of CECL adoption ( 2 ) 19 ( 11 ) ( 9 ) 24 ( 12 ) 9

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

Provision/(benefit) for credit losses:

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

Provision/(benefit) for credit losses ( 3 ) 57 — ( 1 ) 21 — 74

Total provision/(benefit) for credit losses

( 1 ) 62 19 ( 1 ) 21 — 100

Net (charge-offs)/recoveries:

5 unchanged sentences

ACL by loan portfolio segment as a % of total ACL 0.8 % 57.0 % 22.0 % 5.3 % 14.4 % 0.5 % 100.0 %

The allowance for credit losses on held for investment bank loans increased $ 78 million during the year ended September 30, 2023 primarily resulting from provisions for credit losses of $ 132 million, partially offset by net charge-offs of certain loans during the year.

The provision for credit losses for the year ended September 30, 2023 primarily reflected the impacts of a weakened macroeconomic outlook for certain loan portfolios, including a weakened outlook for commercial real estate prices compared with the prior year, charge-offs of certain loans, and loan downgrades during the year.

These increases were partially offset by the favorable impact of loan repayments and sales, which had a larger impact on the current fiscal year expense than provisions on new loans.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Consolidated Statements of Financial Condition, was $ 22 million, $ 19 million, and $ 13 million at September 30, 2023, 2022, and 2021, respectively.

The increase in the allowance for credit losses on unfunded lending commitments for the year ended September 30, 2023 was primarily due to the aforementioned weakened outlook for commercial real estate prices.

The allowance for credit losses on bank loans held for investment decreased $ 17 million during the year ended September 30, 2024, primarily resulting from net-charges off during the period, partially offset by the bank loan provision for credit losses of $ 45 million during the year.

The bank loan provision for credit losses for the year ended September 30, 2024 primarily reflected the impacts 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 in the C&I loan portfolio.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Consolidated Statements of Financial Condition, was $ 22 million at both September 30, 2024 and 2023 and $ 19 million at September 30, 2022.

RAYMOND JAMES FINANCIAL, INC.

17 unchanged sentences

(1) These loans were predominantly current.

(2) These loans were predominantly past due for a period of 180 days or more.

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

NOTE 10 – VARIABLE INTEREST ENTITIES

14 unchanged sentences

Total $ 71 $ 26

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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 Consolidated Statements of Financial Condition.

7 unchanged sentences

$ ( 6 ) $ ( 27 )

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

VIEs where we hold a variable interest but are not the primary beneficiary

15 unchanged sentences

Total $ 12,077 $ 4,098 $ 282 $ 11,243 $ 3,703 $ 217

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 11 - GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET

14 unchanged sentences

Goodwill as of beginning of year $ 564 $ 275 $ 69 $ 529 $ 1,437

Additions — — — — —

Foreign currency translations 14 — — — 14

2 unchanged sentences

Goodwill as of beginning of year $ 550 $ 274 $ 69 $ 529 $ 1,422

164 102 — 529 795

Foreign currency translations 14 1 — — 15

Goodwill as of end of year $ 564 $ 275 $ 69 $ 529 $ 1,437

The additions of goodwill during the year ended September 30, 2022 arose from our acquisitions of Charles Stanley in our Private Client Group segment, TriState Capital in our Bank segment, and SumRidge Partners in our Capital Markets segment.

See Note 3 for additional information regarding these acquisitions.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Qualitative assessments

12 unchanged sentences

$ 168 $ 50 $ 132 $ 120 $ 470

Additions — — — — —

Amortization expense ( 15 ) ( 10 ) ( 7 ) ( 12 ) ( 44 )

9 unchanged sentences

$ 168 $ 50 $ 132 $ 120 $ 470

The additions of identifiable intangible assets during the year ended September 30, 2022 arose from our acquisitions of Charles Stanley in our Private Client Group segment, SumRidge Partners in our Capital Markets segment, Chartwell in our Asset Management segment, and TriState Capital in our Bank segment.

See Note 3 for additional information regarding these acquisitions.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table summarizes our identifiable intangible assets by type.

11 unchanged sentences

Thereafter 186

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Qualitative assessments

11 unchanged sentences

Property and equipment, net 635 561

Lease ROU assets 560 480

ROU lease assets

Prepaid expenses 220 209

4 unchanged sentences

See Note 13 for additional information regarding our property and equipment and Note 14 for additional information regarding our leases.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 13 - PROPERTY AND EQUIPMENT, NET

17 unchanged sentences

We also incur software licensing fees, which are included in “Communications and information processing” expense on our Consolidated Statements of Income and Comprehensive Income.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 14 - LEASES

3 unchanged sentences

$ in millions 2024 2023

ROU assets (included in Other assets) $ 560 $ 480

ROU lease assets (included in “Other assets”)

Lease liabilities (included in “Other payables”)

9 unchanged sentences

Variable lease costs $ 37 $ 31 $ 28

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Lease liabilities

6 unchanged sentences

Lease liabilities as of September 30, 2024 excluded $ 35 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 fiscal year 2024 through fiscal year 2025 with lease terms ranging from four to ten years .

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

These leases are estimated to commence in fiscal 2025 with lease terms of up to eight years .

NOTE 15 – BANK DEPOSITS

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

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

11 unchanged sentences

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

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

Total bank deposits in the preceding table included $ 13.59 billion of deposits as of September 30, 2023 associated with the ESP, in which PCG clients deposit cash in a high-yield Raymond James Bank account.

Total bank deposits in the preceding table included $ 14.02 billion and $ 13.59 billion of deposits as of September 30, 2024 and 2023, respectively, associated with our 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 estimated amount of total bank deposits (which excludes affiliate deposits) that are FDIC-insured, as well as the estimated amount that exceeded the FDIC insurance limit at each respective period.

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 September 30, 2024 September 30, 2023

4 unchanged sentences

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

(1) Excluded affiliate deposits exceeding the FDIC insurance limit of $ 764 million and $ 770 million as of September 30, 2023 and 2022, respectively.

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

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

(2) Excluded affiliate deposits exceeding the FDIC insurance limit of $ 1.05 billion and $ 764 million as of September 30, 2024 and 2023, respectively.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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 September 30, 2024.

$ in millions September 30, 2024

3 unchanged sentences

Over twelve months 11

Total estimated certificates of deposit that exceeded the FDIC insurance limit $ 133

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

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

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

1 unchanged sentence

Total certificates of deposit $ 2,612

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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

6 unchanged sentences

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

See Note 2 for information regarding this interest rate swap, which has been designated and accounted for as a cash flow hedge.

See Notes 2 and 6 for information regarding this interest rate swap, which has been designated and accounted for as a cash flow hedge.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 16 – OTHER BORROWINGS

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

The following table details the components of our other borrowings.

September 30, 2024 September 30, 2023

2 unchanged sentences

Floating rate - term

5.62 % December 2023 - March 2025 $ 850 3.32 % December 2023 $ 850

Floating rate - overnight

3.11 % Overnight 140

Fixed rate 5.70 % December 2023 150 3.45 % December 2022 200

5.14 % March 2025 - December 2025 $ 650 5.62 % December 2023 - March 2025 $ 850

Fixed rate 4.47 % December 2024 - December 2028 300 5.70 % December 2023 150

Total FHLB advances 950 1,000

7 unchanged sentences

See Notes 2 and 6 for information regarding these interest rate swaps, which have been designated and accounted for as cash flow hedges.

See Note 7 for additional information regarding bank loans, net and available-for-sale securities pledged with the FHLB as security for our FHLB borrowings.

See Note 7 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 September 30, 2023, we had subordinated notes due 2030 outstanding, with an aggregate principal amount of $ 98 million.

As of September 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 SOFR plus a spread adjustment of 5.62 % per annum.

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Credit Facility

11 unchanged sentences

Amounts outstanding under this financing arrangement are collateralized by a portion of our trading inventory and accrue interest based on market rates.

While we had borrowings outstanding as of September 30, 2023, the clearing organization is under no contractual obligation to lend to us under this arrangement.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

borrowings outstanding as of September 30, 2024, the clearing organization is under no contractual obligation to lend to us under this arrangement.

We also have other collateralized financings included in “Collateralized financings” on our Consolidated Statements of Financial Condition.

8 unchanged sentences

Total principal amount 2,050 2,050

Unaccreted premiums/(discounts) 5 5

Net unaccreted premiums

Unamortized debt issuance costs

1 unchanged sentence

Total senior notes payable $ 2,040 $ 2,039

$ 2,039 $ 2,038

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

8 unchanged sentences

Interest on these senior notes is payable semi-annually.

We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100 % of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon,

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

discounted to the redemption date at a discount rate equal to a designated U.S.

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

5 unchanged sentences

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

We utilized the proceeds from this offering and cash on hand to early-redeem our $ 250 million of 5.625 % senior notes due 2024 and our $ 500 million of 3.625 % senior notes due 2026.

We recognized losses on the extinguishment of such notes of $ 98 million which was presented in “Losses on extinguishment of debt” in our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2021.

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 18 – INCOME TAXES

For a discussion of our income tax accounting policies and other income tax-related information see Note 2.

The following table presents our U.S.

and foreign components of pre-tax income for each respective period.

Year ended September 30,

$ in millions 2024 2023 2022

$ 2,534 $ 2,193 $ 1,907

Foreign 109 87 115

Pre-tax income $ 2,643 $ 2,280 $ 2,022

The following table details the total income tax provision/(benefit) allocation for each respective period.

5 unchanged sentences

Equity, arising from currency translations, net of the impact of net investment hedges recorded through OCI

( 4 ) 23 ( 10 )

Total provision for income taxes $ 712 $ 540 $ 249

10 unchanged sentences

Total deferred $ ( 83 ) $ ( 88 ) $ ( 16 )

Total provision for income taxes $ 541 $ 513 $ 388

Total provision for income taxes included in net income

$ 575 $ 541 $ 513

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Consolidated Financial Statements

A reconciliation of the U.S.

federal statutory income tax rate to our effective income tax rate is detailed in the following table.

The following table details a reconciliation of the provision for income taxes at the U.S.

federal statutory income tax rate to our actual provision for income taxes and the effective income tax rate for each respective period.

Year ended September 30,

2024 2023 2022

$ in millions Amount Rate Amount Rate Amount Rate

Provision calculated at statutory rate $ 555 21.0 % $ 479 21.0 % $ 425 21.0 %

State income tax, net of federal benefit 87 3.3 % 83 3.6 % 65 3.2 %

Nondeductible fines and penalties

0.8 % — % — %

Nondeductible executive compensation

1 unchanged sentence

Foreign tax rate differential 10 0.4 % 8 0.4 % 4 0.2 %

General business tax credits (1)

( 1.0 ) % ( 1.2 ) % ( 1.0 ) %

(Gains)/losses on company-owned life insurance policies which are not subject to tax ( 51 ) ( 1.9 ) % ( 22 ) ( 1.0 ) % 36 1.8 %

Excess tax benefits related to share-based compensation

Federal tax credits (1)

( 25 ) ( 1.0 ) % ( 15 ) ( 0.7 ) % ( 17 ) ( 0.8 ) %

Solar and LIHTC investment amortization, net of tax credits received (2)

Excess tax benefits related to share-based compensation (2)

( 20 ) ( 0.8 ) % ( 21 ) ( 0.9 ) % ( 22 ) ( 1.1 ) %

Change in uncertain tax positions

Nondeductible fines and penalties (3)

( 6 ) ( 0.2 ) % 18 0.8 % — — %

Other, net 12 0.5 % ( 2 ) ( 0.1 ) % 13 0.7 %

Total provision for income tax

$ 575 21.8 % $ 541 23.7 % $ 513 25.4 %

(1) General business tax credits consist of credits related to foreign withholdings, research and development, wage credits, certain historic tax credits, certain LIHTC credits, and various state credits.

(2) During the year ended September 30, 2023, we made an investment in a solar entity which qualified for tax credits and is accounted for under the proportional amortization method.

For the year ended September 30, 2023, amortization of this investment, which was included in our provision for income taxes, was $ 86 million, and we recognized an offsetting $ 81 million of tax credits and $ 9 million of other tax benefits.

The amortization of LIHTC investments accounted for under the proportional amortization method was $ 3 million for the year ended September 30, 2023, and the related offsetting tax credits received from LIHTC investments were $ 3 million.

There was no such investment amortization in either of the years ended September 30, 2022 or 2021.

The following table presents our U.S.

and foreign components of pre-tax income for each respective period.

Year ended September 30,

$ in millions 2023 2022 2021

$ 2,193 $ 1,907 $ 1,701

Foreign 87 115 90

Pre-tax income $ 2,280 $ 2,022 $ 1,791

(1) Included investment tax credits of $ 20 million, $ 11 million, and $ 15 million for the years ended September 30, 2024, 2023, and 2022, respectively, primarily related to our equity investments in LIHTC funds and historic tax credit funds, as well as certain renewable energy tax credits.

“Federal tax credits” in the preceding table excluded tax credits on equity investments accounted for under the proportional amortization method.

Such tax credits and the related amortization are included in “Other, net” in the preceding table.

(2) Excess tax benefits related to share-based compensation were primarily attributable to the increase in fair value of our RSUs between grant date and delivery date which was $ 91 million, $ 95 million, and $ 101 million for the years ended September 30, 2024, 2023, and 2022, respectively.

(3) The year ended September 30, 2024, reflected the favorable impact of a legal and regulatory matters reserve release while the year ended September 30, 2023, reflected the impact of provisions for legal and regulatory matters.

We hold equity investments in certain structures which deliver tax benefits that qualify for the application of the proportional amortization method, whereby such investment is amortized in proportion to the allocation of tax benefits received in each year, and the investment amortization and the tax benefits are presented on a net basis within “ Provision for income taxes ” on our Consolidated Statements of Income and Comprehensive Income.

See Note 2 for additional information.

For the years ended September 30, 2024 and 2023, the amortization of renewable energy tax credit investments accounted for under the proportional amortization method was $ 28 million and $ 86 million, respectively, and we recognized offsetting tax credits of $ 28 million and $ 81 million, respectively.

For the year ended September 30, 2023, we also recognized other tax benefits related to such investments of $ 9 million.

For both the years ended September 30, 2024 and 2023, the amortization of LIHTC investments accounted for under the proportional amortization method was $ 3 million, and we recognized offsetting tax credits of $ 3 million.

Such amounts are reflected in “Other, net” in the preceding table.

There was no such investment amortization for the year ended September 30, 2022.

As of September 30, 2024, we had $ 63 million of remaining commitments related to a renewable energy tax credit investment accounted for under the proportional amortization method, which was accrued within “Other payables” on our Consolidated Statements of Financial Condition and is expected to be funded in our fiscal 2025 upon the project satisfying certain conditions.

The unamortized equity investment related to this investment was $ 61 million and was included in “ Other assets ” on our Consolidated Statements of Financial Condition as of September 30, 2024.

RAYMOND JAMES FINANCIAL, INC.

14 unchanged sentences

Net operating losses and credit carryforwards

Unrealized loss associated with foreign currency translations 5 27

Total deferred tax assets 980 1,065

2 unchanged sentences

Deferred tax liabilities:

Lease ROU assets

( 141 ) ( 118 )

Goodwill and identifiable intangible assets ( 138 ) ( 131 )

ROU lease assets

( 134 ) ( 141 )

Property and equipment ( 44 ) ( 68 )

21 unchanged sentences

State net operating losses

Foreign net operating losses

Net valuation allowance

1 unchanged sentence

As a result, these losses are not able to be utilized in our consolidated filings.

As of September 30, 2023, total deferred tax assets, net of a $ 5 million valuation allowance, aggregated to $ 1.06 billion.

As of September 30, 2024, total deferred tax assets, net of valuation allowance, aggregated to $ 971 million.

We continue to believe that the realization of our deferred tax assets is more likely than not based on expectations of future taxable income.

4 unchanged sentences

As of September 30, 2024, we considered substantially all undistributed earnings of non-U.S.

subsidiaries to be permanently reinvested.

The Tax Cut and Jobs Act (“TCJA”), enacted in December 2017, reduced our incremental tax cost of repatriating offshore earnings.

As a result, we have not provided for any U.S.

deferred income taxes related to such subsidiaries.

The TCJA instituted a territorial system of international taxation.

Under the system, dividends received by a U.S.

corporation from its 10%-or-greater-owned foreign subsidiaries are generally exempt from U.S.

tax if attributable to non-U.S.

source earnings, but are subject to tax on “Global intangible low-taxed income” which is applicable regardless of whether the income is repatriated.

subsidiaries to be permanently reinvested and have not provided for any U.S.

deferred income taxes related to such subsidiaries as we expect our incremental tax cost of repatriating such offshore earnings to not be significant.

As of September 30, 2024, we had approximately $ 578 million of cumulative undistributed earnings attributable to foreign subsidiaries.

Because the time and manner of repatriation is uncertain, we cannot determine the impact of local taxes, withholding taxes, and foreign tax credits associated with the future repatriation of such earnings, and therefore cannot quantify the tax liability that would be payable in the event all such foreign earnings are repatriated.

As of September 30, 2023, the current tax receivable, which was included in “Other receivables, net” on our Consolidated Statements of Financial Condition, was $ 9 million, and the current tax payable, which was included in “Other payables,” was $ 17 million.

As of September 30, 2024, the current tax receivable, which was included in “Other receivables, net” on our Consolidated Statements of Financial Condition, was $ 28 million, and there was no current tax payable.

As of September 30, 2023, the current tax receivable was $ 9 million, and the current tax payable was $ 17 million.

16 unchanged sentences

federal jurisdiction and various consolidated states.

Our subsidiaries also file separate income tax returns in various state and local and foreign jurisdictions.

Our subsidiaries also file separate income tax returns in various state, local, and foreign jurisdictions.

With few exceptions, we are generally no longer subject to U.S.

federal, state and local, or foreign income tax examination by tax authorities for fiscal years prior to fiscal 2020, with the fiscal year 2018 limited by a provision of the TCJA described as follows.

federal or foreign income tax examination by tax authorities for fiscal years prior to fiscal 2021, and fiscal years prior to fiscal 2020 for state and local jurisdictions.

Certain state and local and foreign tax returns are currently under various stages of audit and appeals processes.

Our fiscal 2018 federal tax return remains open for limited examination under the TCJA.

The TCJA provides the Internal Revenue Service a six year limitation period to assess the net transition tax liability reported by the firm.

RAYMOND JAMES FINANCIAL, INC.

5 unchanged sentences

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

As of September 30, 2023, we had one such open underwriting commitment, which was subsequently settled in an open market transaction and did not result in any losses.

As of September 30, 2024, we had three such open underwriting commitments, which were subsequently settled in open market transactions and did not result in any losses.

Lending commitments and other credit-related financial instruments

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

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

15 unchanged sentences

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

Such loans are extended on a demand basis and are generally not committed facilities.

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

1 unchanged sentence

We offer loans to prospective financial advisors for recruiting and retention purposes (see Notes 2 and 9 for additional information regarding our loans to financial advisors).

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

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 $ 19 million for loans to financial advisors who had met such conditions as of September 30, 2024.

Investment commitments

2 unchanged sentences

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 September 30, 2023, RJAHI had committed approximately $ 93 million to

RJAHI typically sells investments in project partnerships to LIHTC

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Consolidated Financial Statements

project partnerships that had not yet been sold to LIHTC funds.

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 September 30, 2024, RJAHI had committed approximately $ 46 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.

10 unchanged sentences

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.

RJF and certain of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and self-regulatory organizations (“SROs”).

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.

For example, the SEC has been conducting an investigation of the firm’s investment advisory business’ compliance with records preservation requirements relating to business communications sent over electronic messaging channels that have not been approved by the firm and has reportedly conducted similar investigations of record preservation practices at other financial institutions.

As of September 30, 2023, we have recorded an accrual related to this SEC investigation in our consolidated financial statements in accordance with our contingent liabilities accounting policy.

See Note 2 for additional information regarding such policies.

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

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

24 unchanged sentences

See Note 3 for additional information about the acquisition.

On April 3, 2023, we redeemed all outstanding shares of our Series A Preferred Stock with a carrying value of $ 41 million, which triggered the redemption of the related depositary shares for an aggregate redemption value of $ 40 million.

Dividends declared on the Series A Preferred Stock during the years ended September 30, 2023 and 2022 were non-cumulative and payable quarterly at a rate of 6.75 % per annum.

We also issued 3.22 million depositary shares on June 1, 2022, each representing a 1/40th interest in a share of Series B Preferred Stock, par value of $ 0.10 per share, with a liquidation preference of $ 1,000 per share (equivalent of $ 25 per depositary share).

The preferred stock issuance included 1.61 million depositary shares, each representing a 1/40th interest in a share of Series A Preferred Stock, par value of $ 0.10 per share, with a liquidation preference of $ 1,000 per share (equivalent of $ 25 per depositary share) and 3.22 million depositary shares, each representing a 1/40th interest in a share of Series B Preferred Stock, par value of $ 0.10 per share, with a liquidation preference of $ 1,000 per share (equivalent of $ 25 per depositary share).

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

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

Under certain circumstances, the aforementioned fixed rate may apply in lieu of the floating rate.

Subject to requisite regulatory approvals, we may redeem the Series B Preferred Stock on or after July 1, 2024, in whole or in part, at our option, at the liquidation preference plus declared and unpaid dividends.

Subject to requisite regulatory approvals, we may redeem the Series B Preferred Stock, in whole or in part, at the liquidation preference plus declared and unpaid dividends.

The following table details the shares outstanding, carrying value, and aggregate liquidation preference of our preferred stock.

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

Series A Preferred Stock:

Shares outstanding — 40,250

Carrying value $ — $ 41

Aggregate liquidation preference $ — $ 40

$ in millions

September 30, 2024 September 30, 2023

Series B Preferred Stock:

7 unchanged sentences

Year ended September 30, 2024

Series B Preferred Stock $ 5 $ 63.76 $ 5 $ 63.76

Year ended September 30, 2023

Series A Preferred Stock (1)

1 unchanged sentence

Series B Preferred Stock 5 $ 63.76 5 $ 63.76

Total preferred stock dividends declared (1)

Year ended September 30, 2022

1 unchanged sentence

Series B Preferred Stock 3 $ 31.88 1 $ 15.94

Total preferred stock dividends paid $ 4 $ 2

(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 Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2023 included dividends declared during the year, 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.

9 unchanged sentences

208.8 215.1 205.7

Repurchases of common stock

Repurchases of common stock under the Board of Directors’ common stock repurchase authorization

( 7.7 ) ( 8.4 ) ( 1.7 )

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

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

Common stock issued for TriState Capital acquisition (1)

1 unchanged sentence

203.3 208.8 215.1

(1) On August 24, 2021, our Board of Directors approved a three-for-two stock split, effected in the form of a 50 % stock dividend, paid on September 21, 2021.

All share information has been retroactively adjusted to reflect this stock split.

(2) On June 1, 2022, we issued 7.97 million shares of common stock as a component of the consideration in the settlement of TriState Capital common stock and 551 thousand RSAs in conjunction with our acquisition of TriState Capital.

See Note 3 for additional information on the TriState Capital acquisition and Note 23 for further information on the RSAs and common stock issuances made under our share-based compensation programs.

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

(1) On June 1, 2022, in conjunction with our acquisition of TriState Capital we issued 7.97 million shares of common stock as a component of the purchase consideration in the settlement of TriState Capital common stock and 551 thousand RSAs.

See Note 3 for additional information on the TriState Capital acquisition and Note 23 for additional information on the RSAs and common stock issuances made under our share-based compensation programs.

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 23 for additional information on these programs.

We may also reissue treasury shares for such purposes, which is not reflected in the preceding table.

Share repurchases

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

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

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

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

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 year ended September 30, 2024, we repurchased 7.7 million shares of our common stock for $ 900 million at an average price of $ 116.96 per share under the Board of Directors’ common stock repurchase authorization.

As of September 30, 2024, $ 644 million remained available under the Board of Directors’ common stock repurchase authorization.

We incurred $ 5 million of excise tax on common stock repurchases during the year ended September 30, 2023 which was included in “Treasury stock” on the Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Shareholders’ Equity.

Common stock dividends

13 unchanged sentences

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

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

See Note 24 for additional information on our regulatory capital requirements.

27 unchanged sentences

Amounts reclassified from AOCI, before tax

— — — — ( 32 ) ( 32 )

Pre-tax net OCI

11 unchanged sentences

Amounts reclassified from AOCI, before tax

— 2 2 ( 7 ) 15 10

Pre-tax net OCI

6 unchanged sentences

Reclassifications from AOCI to net income, excluding taxes, for the year ended September 30, 2024, 2023, and 2022 were recorded in “Interest expense” on the Consolidated Statements of Income and Comprehensive Income.

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

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

5 unchanged sentences

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.

See Note 26 for additional information on our segment results.

See Note 2 for additional information about our significant accounting policies related to revenue recognition.

See Note 26 for additional information on our segments.

Year ended September 30, 2024

131 unchanged sentences

Net interest income 2,130 2,375 1,203

Bank loan (provision)/benefit for credit losses ( 132 ) ( 100 ) 32

Net interest income after bank loan (provision)/benefit for credit losses $ 2,243 $ 1,103 $ 705

Bank loan provision for credit losses

Net interest income after bank loan provision for credit losses

$ 2,085 $ 2,243 $ 1,103

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

9 unchanged sentences

We may grant RSU awards under the Plan in connection with initial employment or under various retention programs for individuals who are responsible for contributing to our management, growth, and/or profitability.

We utilize the Restricted Stock Trust Fund, which we funded to enable the trust fund to acquire our common stock in the open market to be used to settle RSUs granted as a retention vehicle for certain employees of our Canadian subsidiaries.

We may also grant RSU awards to officers and certain other employees in lieu of cash for portions ranging from 10 % to 50 % of annual bonus amounts in excess of $ 250,000 .

Under the Plan, the awards are generally restricted for a three - to five-year period, during which time the awards are generally forfeitable in the event of termination other than for death, disability, or qualifying retirement.

We may also grant RSU awards in lieu of cash for a portion of the annual bonus awarded to officers and certain other employees who receive an annual bonus in excess of $ 275,000 .

Under the Plan, RSU awards are generally restricted for a three - to five-year period, during which time the awards are generally forfeitable in the event of termination other than for death, disability, or qualifying retirement.

We grant RSUs annually to non-employee members of our Board of Directors.

14 unchanged sentences

RSU share-based compensation amortization $ 242 $ 220 $ 179

Income tax benefits related to share-based expense $ 51 $ 41 $ 29

For the year ended September 30, 2023, we realized $ 95 million of excess tax benefits related to our RSUs, which favorably impacted income tax expense on our Consolidated Statements of Income and Comprehensive Income.

See Note 18 for additional information regarding income taxes.

As of September 30, 2023, there was $ 344 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs granted to employees, independent contractor financial advisors, and members of our Board of Directors.

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

Income tax benefits related to share-based compensation expense

$ 41 $ 51 $ 41

As of September 30, 2024, there were $ 289 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs granted to employees, independent contractor financial advisors, and members of our Board of Directors.

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

The following RSU activity occurred for the periods indicated.

5 unchanged sentences

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.

For the years ended September 30, 2023 and 2022, total share-based compensation amortization related to these RSAs was $ 9 million and $ 4 million, respectively.

For the years ended September 30, 2024, 2023, and 2022, total share-based compensation amortization related to these RSAs was $ 6 million, $ 9 million, and $ 4 million, respectively.

As of September 30, 2024, there were $ 5 million of total pre-tax compensation costs not yet recognized for these RSAs.

These costs are expected to be recognized over a weighted-average period of 2.2 years.

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

See Note 3 for additional information regarding our acquisition of TriState Capital.

10 unchanged sentences

Cash received from stock options exercised by our employees and independent contractor financial advisors during the year ended September 30, 2024 was $ 5 million.

Employee other compensation

Our profit-sharing plan and employee stock ownership plan (“ESOP”) are qualified plans that provide certain death, disability, or retirement benefits for our U.S.-based employees who meet certain service requirements.

The plans are noncontributory and

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Consolidated Financial Statements

Employee other compensation

Our profit sharing plan and employee stock ownership plan (“ESOP”) are qualified plans that provide certain death, disability, or retirement benefits for all employees who meet certain service requirements.

The plans are noncontributory and our contributions, if any, are determined annually by our Board of Directors, or a committee thereof, on a discretionary basis and are recognized as compensation expense throughout the year.

our contributions, if any, are determined annually by our Board of Directors, or a committee thereof, on a discretionary basis and are recognized as compensation expense throughout the year.

Benefits become fully vested after five years of qualified service, age 65, or if a participant separates from service due to death or disability.

1 unchanged sentence

Cash dividends paid to the ESOP are reflected as a reduction of retained earnings.

The number of shares of our common stock held by the ESOP was 6.6 million at both September 30, 2023 and 2022.

The number of shares of our common stock held by the ESOP was 6.5 million and 6.6 million at September 30, 2024 and 2023, respectively.

The market value of our common stock held by the ESOP at September 30, 2024 was $ 794 million, of which $ 8 million was unearned (not yet vested) by ESOP plan participants.

2 unchanged sentences

Our LTIP is a non-qualified deferred compensation plan that provides benefits to certain employees who meet certain compensation or production requirements.

We have purchased and hold life insurance on the lives of certain current and former employee participants to earn a competitive rate of return for participants and to provide the primary source of funds available to satisfy our obligations under this plan.

Company-owned life insurance is the primary source of funding for this plan.

See Note 12 for information regarding the carrying value of these company-owned life insurance policies.

16 unchanged sentences

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.

Failure to meet applicable 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 Fed.

1 unchanged sentence

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”).

Effective August 1, 2023, TriState Capital Bank completed its conversion from a state non-member bank, which was primarily supervised by the PDBS and the FDIC, to a state member bank, which is primarily supervised by the PDBS and the Fed.

As a state member bank, TriState Capital Bank will also continue to be supervised by the FDIC and the Consumer Financial Protection Bureau.

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

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

Under these rules, 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.

2 unchanged sentences

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

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

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 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 %

RJF as of September 30, 2022:

Tier 1 leverage $ 8,480 10.3 % $ 3,304 4.0 % $ 4,130 5.0 %

As of September 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.”

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

Required ratio (1)

Well-capitalized

September 30, 2024 September 30, 2023

$ in millions Ratio Amount Ratio Amount

Tier 1 leverage 4.0 % N/A (2)

12.8 % $ 10,383 11.9 % $ 9,321

Tier 1 capital 8.5 % 6.0 % 22.8 % $ 10,383 21.4 % $ 9,321

CET1 $ 8,380 19.0 % $ 1,988 4.5 % $ 2,871 6.5 %

CET1 7.0 % N/A (2)

22.6 % $ 10,307 21.2 % $ 9,245

Total capital 10.5 % 10.0 % 24.1 % $ 11,001 22.8 % $ 9,934

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

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

The decrease in risk-weighted assets was primarily driven by a decrease in assets segregated for regulatory purposes and the impact of lower market volatility on our market risk-weighted assets, partially offset by an increase in our bank loan portfolio.

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

(1) Requirements for tier 1 capital, CET1, and total capital included a required capital conservation buffer of 2.5%.

(2) The Fed’s regulations do not establish well-capitalized thresholds for these measures for BHCs.

As of September 30, 2024, RJF’s regulatory capital increased compared with September 30, 2023 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 other assets, including investments in company-owned life insurance policies, and brokerage client receivables, partially offset by a decline in our available-for-sale securities portfolio.

RJF’s tier 1 leverage ratio at September 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, cash, and other assets, including investments in company-owned life insurance policies, partially offset by a decline in our available-for-sale securities portfolio.

RAYMOND JAMES FINANCIAL, INC.

1 unchanged sentence

Notes to Consolidated Financial Statements

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 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 %

Raymond James Bank as of September 30, 2022:

Tier 1 leverage $ 2,998 7.1 % $ 1,695 4.0 % $ 2,119 5.0 %

Tier 1 capital $ 2,998 12.1 % $ 1,485 6.0 % $ 1,979 8.0 %

CET1 $ 2,998 12.1 % $ 1,113 4.5 % $ 1,608 6.5 %

Total capital $ 3,308 13.4 % $ 1,979 8.0 % $ 2,474 10.0 %

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

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

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

Actual Requirement for capital

adequacy purposes To be well-capitalized

under regulatory provisions

$ in millions Amount Ratio Amount Ratio Amount Ratio

TriState Capital Bank as of September 30, 2023:

For RJF to maintain its status as a financial holding company, Raymond James Bank and TriState Capital Bank must, among other things, qualify as “well-capitalized.” 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 table.

Our banks’ failure to remain well-capitalized could result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on our financial statements.

Required ratio (1)

Well-capitalized

September 30, 2024 September 30, 2023

$ in millions Ratio Amount Ratio Amount

Raymond James Bank:

Tier 1 leverage 4.0 % 5.0 % 8.1 % $ 3,401 7.8 % $ 3,355

Tier 1 capital 8.5 % 8.0 % 14.4 % $ 3,401 13.7 % $ 3,355

$ 1,290 14.8 % $ 524 6.0 % $ 699 8.0 %

CET1 7.0 % 6.5 % 14.4 % $ 3,401 13.7 % $ 3,355

Total capital 10.5 % 10.0 % 15.7 % $ 3,698 15.0 % $ 3,662

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

TriState Capital Bank as of September 30, 2022:

TriState Capital Bank:

Tier 1 leverage 4.0 % 5.0 % 7.5 % $ 1,505 7.2 % $ 1,290

Tier 1 capital 8.5 % 8.0 % 16.9 % $ 1,505 14.8 % $ 1,290

$ 1,093 14.1 % $ 463 6.0 % $ 618 8.0 %

CET1 7.0 % 6.5 % 16.9 % $ 1,505 14.8 % $ 1,290

Total capital 10.5 % 10.0 % 17.5 % $ 1,558 15.3 % $ 1,333

$ 1,122 14.5 % $ 618 8.0 % $ 772 10.0 %

TriState Capital Bank’s regulatory capital increased compared with September 30, 2022, driven by positive earnings and a capital contribution from RJF.

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

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

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

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(1) Requirements for tier 1 capital, CET1, and total capital included a capital conservation buffer of 2.5%.

Our bank subsidiaries may pay dividends to RJF out of retained earnings without prior approval of their regulators as long as the dividends do not exceed the sum of their current calendar year and the previous two calendar years’ retained net income and they satisfy applicable regulatory capital requirements.

Dividends paid to RJF from our bank subsidiaries may be limited to the extent that capital is needed to support balance sheet growth or as part of our liquidity and capital management activities.

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.

3 unchanged sentences

FINRA may impose certain restrictions, such as restricting withdrawals of equity capital, if a member firm were to fall below a certain threshold or fail to meet minimum net capital requirements.

As of September 30, 2023, RJ&A had excess net capital available to remit dividends to RJF, some of which may be remitted without prior regulatory approval and the remainder may be remitted in conformity with all required regulatory rules or approvals.

As of September 30, 2024, RJ&A had excess net capital available to remit dividends to RJF, subject to applicable regulatory requirements, including, in certain cases, regulatory approval.

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

9 unchanged sentences

Excess net capital $ 958 $ 987

$ 987 $ 1,096

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

RAYMOND JAMES FINANCIAL, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 25 – EARNINGS PER SHARE

21 unchanged sentences

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

The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the year to participating securities, consisting of certain RSUs, as well as the RSAs granted as part of our acquisition of TriState Capital, plus an allocation of undistributed earnings to such participating securities.

The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the year 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 the years ended September 30, 2024, 2023 and 2022.

16 unchanged sentences

The segment includes servicing fee revenues from third-party mutual fund and annuity companies whose products we distribute and from banks to which we sweep a portion of our clients’ cash deposits as part of the RJBDP, our multi-bank sweep program.

The segment also includes net interest earnings primarily on client margin loans, cash balances, and assets segregated for regulatory purposes, net of interest paid to clients on cash balances in the Client Interest Program.

The segment also includes net interest earnings primarily on assets segregated for regulatory purposes, margin loans provided to clients, cash balances, and securities borrowing transactions, net of interest paid on client cash balances in the Client Interest Program and securities lending transactions.

Our Capital Markets segment conducts investment banking, institutional sales, securities trading, equity research, and the syndication and management of investments in low-income housing funds and funds of a similar nature.

9 unchanged sentences

This segment generates net interest income principally through the interest income earned on loans and an investment portfolio of available-for-sale securities, which is offset by the interest expense it pays on client deposits and on its borrowings.

The Other segment includes interest income on certain corporate cash balances, the results of our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to operating segments including the interest costs on our public debt and any losses on the extinguishment of such debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses.

Refer to Note 3 for additional information regarding our fiscal year 2022 acquisitions of Charles Stanley, TriState Capital, and SumRidge Partners.

The Other segment includes interest income on certain corporate cash balances, the results of our private equity investments, which predominantly consist of investments in third-party funds, certain other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to operating segments including the interest costs on our public debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses.

RAYMOND JAMES FINANCIAL, INC.

10 unchanged sentences

Asset Management

Bank 2,013 1,084 672

1,027 885 914

Bank 1,716 2,013 1,084

Intersegment eliminations

44 unchanged sentences

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 classified by major geographic area in which they were earned.

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

Year ended September 30,

4 unchanged sentences

Europe 494 447 396

Total $ 11,619 $ 11,003 $ 9,760

Total net revenues

$ 12,821 $ 11,619 $ 11,003

Pre-tax income/(loss):

2 unchanged sentences

Europe ( 16 ) ( 21 ) 32

Total $ 2,280 $ 2,022 $ 1,791

Total pre-tax income

$ 2,643 $ 2,280 $ 2,022

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

19 unchanged sentences

At September 30, 2024, each of these subsidiaries exceeded their minimum net capital requirements (see Note 24 for additional information).

Of the Parent’s net assets as of September 30, 2023, approximately $ 108 million of its investment in RJ&A and Raymond James Financial Services, Inc.

was available for distribution to the Parent without further regulatory approvals.

Of the Parent’s net assets as of September 30, 2024, approximately $ 128 million of its investment in RJ&A, Raymond James Financial Services, Inc., and SumRidge Partners, LLC was available for distribution to the Parent without further regulatory approvals.

As of September 30, 2024, approximately $ 3.9 billion of the net assets of our U.S.

6 unchanged sentences

Cash and cash equivalents of $ 2.16 billion and $ 2.08 billion as of September 30, 2024 and 2023, respectively, were held directly by RJF in depository accounts at third-party financial institutions, unrestricted cash held in depository accounts at Raymond James Bank, or were loaned by the Parent to RJ&A, which RJ&A had invested on behalf of RJF, or otherwise deployed in its normal business activities.

The loan to RJ&A, which totaled $ 1.39 billion and $ 1.30 billion as of September 30, 2023 and 2022, respectively, is included in “Intercompany receivables from subsidiaries” in the table below.

The amount held in depository accounts at Raymond James Bank and TriState Capital Bank totaled $ 282 million as of September 30, 2023, of which $ 240 million was available on demand without restriction.

As of September 30, 2022, $ 260 million was held in depository accounts at Raymond James Bank, of which $ 230 million was available on demand without restriction.

The loan to RJ&A, which totaled $ 1.43 billion and $ 1.39 billion as of September 30, 2024 and 2023, respectively, is included in “Intercompany receivables from subsidiaries” in the following table.

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling $ 298 million and $ 294 million as of September 30, 2024 and 2023, respectively.

The portion of this total that was available on demand without restrictions, which amounted to $ 253 million and $ 240 million as of September 30, 2024 and 2023, is included in “Cash and cash equivalents” in the following table.

See Notes 16, 17, 19 and 24 for additional information regarding borrowings, commitments, contingencies and guarantees, and regulatory capital requirements of the Parent and its subsidiaries.

42 unchanged sentences

Business development 23 21 20

Losses on extinguishment of debt — — 98

Intercompany allocations and charges 7 2 ( 8 )

3 unchanged sentences

Total non-interest expenses 180 129 181

Pre-tax income/(loss) before equity in undistributed net income of subsidiaries 1,149 1,831 ( 29 )

Pre-tax income before equity in undistributed net income of subsidiaries

1,281 1,149 1,831

Income tax benefit ( 98 ) ( 35 ) ( 20 )

15 unchanged sentences

Adjustments to reconcile net income to net cash provided by operating activities:

Loss on investments 2 1 5

(Gain)/loss on investments

Unrealized (gain)/loss on company-owned life insurance policies, net of expenses ( 224 ) ( 95 ) 159

Equity in undistributed net income of subsidiaries ( 689 ) ( 555 ) 342

Losses on extinguishment of debt — — 98

Other 148 158 161

13 unchanged sentences

Purchase of investments in company-owned life insurance policies, net ( 51 ) ( 65 ) ( 63 )

Net cash provided by/(used in) investing activities ( 254 ) ( 1,996 ) 585

Net cash (used in) investing activities

( 167 ) ( 254 ) ( 1,996 )

Cash flows from financing activities:

3 unchanged sentences

Exercise of stock options and employee stock purchases 46 46 52

Proceeds from senior note issuances, net of debt issuance costs paid — — 737

Extinguishment of senior notes payable — — ( 844 )

Net cash used in financing activities ( 1,321 ) ( 1,211 ) ( 441 )

8 unchanged sentences

Cash paid for income taxes, net (1)

$ 40 $ 9 $ 24

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

2 unchanged sentences

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

(1) Represented payments, net of refunds, made by the Parent to various taxing authorities and included taxes paid on behalf of certain of its subsidiaries.

RAYMOND JAMES FINANCIAL, INC.

2 unchanged sentences

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

What changed 10-K

Item 8. Financial Statements and Supplementary Data