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FORM 10-K
|
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Florida
|
No. 59-1517485
|
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
|
incorporation or organization)
|
Identification No.)
|
880 Carillon Parkway, St. Petersburg, Florida
|
33716
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant's telephone number, including area code
|
(
727) 567-1000
|
Title of each class
|
Name of each exchange on which registered
|
Common Stock, $.01 Par Value
|
New York Stock Exchange
|
Securities registered pursuant to Section 12(g) of the Act:
|
None
|
Large accelerated filer
x
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
RAYMOND JAMES FINANCIAL, INC.
TABLE OF CONTENTS
|
||
Page
|
||
PART I
|
||
Item 1
|
Business
|
2
|
Item 1A
|
Risk factors
|
14
|
Item 1B
|
Unresolved staff comments
|
26
|
Item 2
|
Properties
|
26
|
Item 3
|
Legal proceedings
|
27
|
PART II
|
||
Item 5
|
Market for registrant's common equity, related shareholder matters and issuer purchases of equity securities
|
28
|
Item 6
|
Selected financial data
|
29
|
Item 7
|
Management's discussion and analysis of financial condition and results of operations
|
30
|
Item 7A
|
Quantitative and qualitative disclosures about market risk
|
65
|
Item 8
|
Financial statements and supplementary information
|
76
|
Item 9
|
Changes in and disagreements with accountants on accounting and financial disclosure
|
151
|
Item 9A
|
Controls and procedures
|
151
|
Item 9B
|
Other information
|
153
|
PART III
|
||
Item 10
|
Directors, executive officers and corporate governance
|
153
|
Item 11
|
Executive compensation
|
153
|
Item 12
|
Security ownership of certain beneficial owners and management and related stockholder matters
|
153
|
Item 13
|
Certain relationships and related transactions, and director independence
|
153
|
Item 14
|
Principal accountant fees and services
|
153
|
PART IV
|
||
Item 15
|
Exhibits, financial statement schedules
|
154
|
Signatures
|
156
|
Private Client Group securities commissions and fees
|
||||||||||||||||||||||||
for the fiscal years ended September 30,
|
||||||||||||||||||||||||
2011
|
% of total
|
2010
|
% of total
|
2009
|
Total
|
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Equities
|
$ | 276,562 | 15 | % | $ | 251,820 | 16 | % | $ | 230,121 | 18 | % | ||||||||||||
Fixed income products
|
60,193 | 3 | % | 68,867 | 4 | % | 76,144 | 6 | % | |||||||||||||||
Mutual funds
|
458,555 | 25 | % | 419,262 | 26 | % | 296,109 | 23 | % | |||||||||||||||
Fee-based accounts
|
685,672 | 38 | % | 551,107 | 35 | % | 412,638 | 33 | % | |||||||||||||||
Insurance and annuity products
|
261,045 | 15 | % | 234,474 | 15 | % | 202,712 | 16 | % | |||||||||||||||
New issue sales credits
|
75,590 | 4 | % | 59,841 | 4 | % | 45,086 | 4 | % | |||||||||||||||
Total Private Client Group commissions and fees
|
$ | 1,817,617 | 100 | % | $ | 1,585,371 | 100 | % | $ | 1,262,810 | 100 | % |
Employees
|
Independent contractors
|
2011 total
|
2010 total
|
|
RJ&A
|
1,311
|
-
|
1,311
|
1,266
|
RJFS
|
-
|
3,193
|
3,193
|
3,237
|
RJ Ltd.
|
198
|
254
|
452
|
442
|
RJIS
|
-
|
157
|
157
|
145
|
Total financial advisors
|
1,509
|
3,604
|
5,113
|
5,090
|
Traditional branches
|
Satellite offices
|
Independent contractor branches
|
2011 total
|
2010 total
|
|
RJ&A
|
176
|
45
|
-
|
221
|
211
|
RJFS
|
-
|
568
|
1,385
|
1,953
|
1,975
|
RJ Ltd.
|
14
|
24
|
79
|
117
|
115
|
RJIS
|
-
|
-
|
67
|
67
|
63
|
Total branch locations
|
190
|
637
|
1,531
|
2,358
|
2,364
|
Capital markets commissions
|
||||||||||||||||||||||||
for the fiscal years ended September 30,
|
||||||||||||||||||||||||
2011
|
% of total
|
2010
|
% of total
|
2009
|
% of total
|
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Equity
|
$ | 250,188 | 67 | % | $ | 222,481 | 60 | % | $ | 198,218 | 53 | % | ||||||||||||
Fixed income
|
125,770 | 33 | % | 147,585 | 40 | % | 174,315 | 47 | % | |||||||||||||||
Total commissions
|
$ | 375,958 | 100 | % | $ | 370,066 | 100 | % | $ | 372,533 | 100 | % |
Jennifer C. Ackart
|
47
|
Senior Vice President, Controller
|
Paul D. Allison
|
55
|
Chairman, President and CEO – Raymond James Ltd. since January, 2009; Co-President and Co-CEO – Raymond James Ltd., August, 2008 – January, 2009; Executive Vice President and Vice Chairman, Merrill Lynch Canada, December, 2007 – August, 2008; Executive Vice President and Managing Director, Co-Head of Canada Investment Banking, Merrill Lynch Canada, March, 2001 – December, 2007
|
James N. Augustine, Jr.
|
44
|
Executive Vice President – Fixed Income Capital Markets – Raymond James & Associates, Inc. since October, 2011; Senior Vice President, Director – Fixed Income Sales Management – Raymond James & Associates, Inc., June, 2008 – October, 2011; Senior Managing Director – Fixed Income Sales Management, Bear Stearns, March, 2006 – June, 2008
|
Richard G. Averitt, III
|
66
|
Chairman and CEO – Raymond James Financial Services, Inc.
|
Angela M. Biever
|
58
|
Chief Administrative Officer since May, 2008; Director, RJF, May, 1997 – April, 2008; Vice President, Intel Capital and Managing Director, Consumer Internet Sector, November, 2006 – May, 2008; General Manager, Intel New Business Initiatives, January, 1999 – November, 2006
|
George Catanese
|
52
|
Senior Vice President and Chief Risk Officer since October, 2005; Director, Internal Audit, November, 2001 – October, 2005
|
Tim Eitel
|
62
|
Chief Information Officer – Raymond James & Associates, Inc.
|
Jeffrey P. Julien
|
55
|
Executive Vice President – Finance, Chief Financial Officer and Treasurer, Director and/or officer of several RJF subsidiaries
|
Paul L. Matecki
|
55
|
Senior Vice President – General Counsel, Secretary
|
Steven M. Raney
|
46
|
President and CEO – Raymond James Bank, FSB since January, 2006; Partner and Director of Business Development, LCM Group, February, 2005 – December, 2005; various executive positions in the Tampa Bay area, Bank of America, June, 1988 – January, 2005
|
Richard K. Riess
|
62
|
Executive Vice President – Asset Management; CEO and Director of Eagle Asset Management, Inc.
|
Thomas R. Tremaine
|
55
|
Executive Vice President – Operations and Administration – Raymond James & Associates, Inc.
|
Jeffrey E. Trocin
|
52
|
Executive Vice President – Equity Capital Markets – Raymond James & Associates, Inc.
|
Dennis W. Zank
|
57
|
President – Raymond James & Associates, Inc.
|
ITEM 5.
|
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Fiscal year
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
First quarter
|
$ | 33.62 | $ | 25.21 | $ | 26.65 | $ | 21.95 | ||||||||
Second quarter
|
39.68 | 31.90 | 28.29 | 23.71 | ||||||||||||
Third quarter
|
39.00 | 31.10 | 31.25 | 24.64 | ||||||||||||
Fourth quarter
|
34.46 | 24.16 | 27.91 | 22.91 |
Fiscal year
|
||||||||
2011
|
2010
|
|||||||
First quarter
|
$ | 0.11 | $ | 0.11 | ||||
Second quarter
|
0.13 | 0.11 | ||||||
Third quarter
|
0.13 | 0.11 | ||||||
Fourth quarter
|
0.13 | 0.11 |
Period
|
Number of shares purchased
(1)
|
Average price
per share
|
||||||
July 1, 2011 – July 31, 2011
|
- | $ | - | |||||
August 1, 2011 – August 31, 2011
|
75,000 | 24.82 | ||||||
September 1, 2011 – September 30, 2011
|
562,533 | 25.21 | ||||||
Total
|
637,533 | $ | 25.17 |
(1)
|
We do not have a formal stock repurchase plan. From time to time, our Board of Directors has authorized specific dollar amounts for repurchases at the discretion of our Board’s Securities Repurchase Committee. As of September 30, 2011, there is $60.2 million remaining on the current authorization.
|
Year ended September 30,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||||||
Operating results:
|
||||||||||||||||||||
Total revenues
|
$ | 3,399,886 | $ | 2,979,516 | $ | 2,602,519 | $ | 3,204,932 | $ | 3,109,579 | ||||||||||
Net revenues
|
$ | 3,334,056 | $ | 2,916,665 | $ | 2,545,566 | $ | 2,812,703 | $ | 2,609,915 | ||||||||||
Net income attributable to RJF
|
$ | 278,353 | $ | 228,283 | $ | 152,750 | $ | 235,078 | $ | 250,430 | ||||||||||
Net income per share – basic
|
$ | 2.20 | $ | 1.83 | $ | 1.25 | (1) | $ | 1.95 | (1) | $ | 2.10 | (1) | |||||||
Net income per share - diluted
|
$ | 2.19 | $ | 1.83 | $ | 1.25 | (1) | $ | 1.93 | (1) | $ | 2.07 | (1) | |||||||
Weighted-average common shares outstanding - basic
|
122,448 | 119,335 | 117,188 | (1) | 116,110 | (1) | 115,268 | (1) | ||||||||||||
Weighted-average common and common equivalent
shares outstanding - diluted
|
122,836 | 119,592 | 117,288 | (1) | 117,140 | (1) | 117,011 | (1) | ||||||||||||
Cash dividends per common share - declared
|
$ | 0.52 | $ | 0.44 | $ | 0.44 | $ | 0.44 | $ | 0.40 | ||||||||||
Financial condition:
|
||||||||||||||||||||
Total assets
|
$ | 18,006,995 | $ | 17,883,081 | (2) | $ | 18,226,728 | (3) | $ | 20,709,616 | (4,5) | $ | 16,228,797 | (5) | ||||||
Long-term debt
(6)
|
$ | 662,006 | $ | 416,369 | $ | 477,423 | $ | 197,910 | $ | 214,864 | ||||||||||
Shareholders' equity
|
$ | 2,587,619 | $ | 2,302,816 | $ | 2,032,463 | $ | 1,883,905 | $ | 1,757,814 | ||||||||||
Shares outstanding
(7)
|
123,273 | 121,041 | 118,799 | 116,434 | 116,649 | |||||||||||||||
Book value per share at end of period
|
$ | 20.99 | $ | 19.03 | $ | 17.11 | $ | 16.18 | $ | 15.07 |
(1)
|
Effective for fiscal year 2010, we implemented new accounting guidance that changed the manner in which earnings per share were computed. The new guidance requires unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) to be considered participating securities and, therefore, included in the earnings allocation in computing earnings per share under the two-class method. Our unvested restricted shares and certain restricted stock units granted as part of our share-based compensation are considered participating securities. To enhance comparability, the earnings per share amounts and the weighted-average share amounts outstanding for the years prior to the effective date of the new accounting guidance have been revised from the amounts initially reported, to reflect the amounts which would have been presented had this accounting guidance been effective in those years.
|
(2)
|
Total assets include $3.1 billion in qualifying assets, offset by $2.4 billion in overnight borrowings and $700 million in additional RJBDP deposits to meet point-in-time regulatory balance sheet composition requirements related to RJ Bank’s qualifying as a thrift institution.
|
(3)
|
Total assets include $1.2 billion in U.S. Treasury securities and $2 billion in reverse repurchase agreements, offset by $2.3 billion in additional RJBDP deposits and $900 million in overnight borrowings to meet point-in-time regulatory balance sheet composition requirements related to RJ Bank’s qualifying as a thrift institution.
|
(4)
|
Total assets include $1.9 billion in cash, offset by an equal amount in an overnight borrowing to meet point-in-time regulatory balance sheet composition requirements related to RJ Bank’s qualifying as a thrift institution.
|
(5)
|
We elect to net-by-counterparty the fair value of certain interest rate swap contracts. See Note 15 of the Notes to Consolidated Financial Statements for additional information. As of October 1, 2008, we adopted new accounting guidance. Under the new guidance, as we elect to net-by-counterparty the fair value of interest rate swap contracts, we must also net-by-counterparty any collateral exchanged as part of the swap agreement. Footnoted periods presented above have been adjusted from the amounts initially reported to reflect this change. The table below shows these adjustments.
|
Year ended September 30,
|
||||||||
2008
|
2007
|
|||||||
(in thousands)
|
||||||||
Total assets initially reported
|
$ | 20,731,859 | $ | 16,254,168 | ||||
Adjustment arising from change in presentation of derivatives netting
|
(22,243 | ) | (25,371 | ) | ||||
Adjusted total assets
|
$ | 20,709,616 | $ | 16,228,797 |
(6)
|
Includes any long-term portion of loans payable of consolidated variable interest entities (which are non-recourse to us), FHLB advances, our mortgage, the term debt of any joint venture we consolidate, and our senior notes.
|
(7)
|
Excludes non-vested shares.
|
·
|
A $58 million, or 36%, increase in the pre-tax income of our PCG segment. This increase resulted from a combination of favorable factors, including the increased activity levels of our private clients due to an improved level of confidence in the equity markets for the first three quarters of the fiscal year, and our continued realization of the benefits of our active recruiting in recent years as evidenced by record financial advisor productivity.
|
·
|
A $61 million, or 54%, increase in the pre-tax income generated by RJ Bank. This increase primarily resulted from a significantly lower loan loss provision related to the improved credit quality of our loan portfolio.
|
·
|
A $19 million, or 41%, increase in pre-tax income generated by our Asset Management segment. Assets under management increased steadily during the first three quarters of the fiscal year resulting from both increased valuations in the equity markets and the net inflows of client assets. During the fourth quarter, equity markets declined which impacted year end asset levels. However, net inflows for the year were strong, and even though the 4
th
quarter equity market decline led to a flat twelve month equity market, year over year assets under management increased 7%.
|
·
|
A $6 million, or 7%, decrease in the pre-tax income of our Capital Markets segment. Investment banking revenues in the current fiscal year increased over the prior year; however, results were significantly impacted by decreases in trading profits primarily associated with fixed income securities, decreases in fixed income institutional sales commissions resulting from the unsettled financial markets, especially during the last two quarters of this fiscal year. Further, expenses increased as we made efforts to expand our capital markets business, including the acquisition of Howe Barnes Hoefer and Arnett, Inc. (“Howe Barnes”).
|
·
|
Our effective tax rate increased to 39.7% from the prior year rate of 36.9%, primarily resulting from an increase in the average state tax rate component of this blended rate, an increase in certain expenses during the fiscal year which are not deductible for tax purposes, including losses on our company-owned life insurance, and a decrease in the amount of tax credits we realized from our ownership interest in certain low-income housing tax credit partnerships.
|
·
|
A pre-tax $41 million loss on ARS repurchased.
|
·
|
A 23% increase in net revenue in our Private Client Group. This increase results primarily from the improved equity markets combined with realization of the benefits of the strong recruiting results in the previous two years.
|
·
|
Net interest earnings decreased $79 million, or 20%, resulting predominately from the lower loan balances and lower interest spreads at RJ Bank, coupled with a full year’s interest expense on our public debt which was issued in August, 2009.
|
·
|
Our Asset Management operating results increased as a result of the increase in assets under management from both asset appreciation and net sales.
|
·
|
Investment banking activity in our capital markets segment increased significantly, reflecting an increase in the number of underwritings resulting in a $52 million, or 100%, increase in underwriting fees. As a result of the improved equity market conditions, we also realized significantly increased commissions from institutional clients on equity securities which were partially offset by declines in commissions on fixed income products. Trading profits were strong, although did not reach the record level achieved in the prior year.
|
·
|
The RJ Bank pre-tax earnings of $112 million reflect a $32 million, or 40%, improvement as compared to the prior year, the net result of lower net interest income and a significantly lower loan loss provision.
|
·
|
Our effective tax rate decreased to 37% from the prior year rate of 38.6%, resulting from tax credits we realized from our ownership interest in certain low-income housing tax credit partnerships, certain state and federal tax credits arising from charitable education contributions, and gains on our company-owned life insurance which are non-taxable.
|
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Total company
|
||||||||||||
Revenues
|
$ | 3,399,886 | $ | 2,979,516 | $ | 2,602,519 | ||||||
Pre-tax income excluding noncontrolling interests
|
461,247 | 361,908 | 248,774 | |||||||||
PCG
|
||||||||||||
Revenues
|
2,185,990 | 1,903,101 | 1,557,462 | |||||||||
Pre-tax income
|
218,811 | 160,470 | 84,873 | |||||||||
Capital Markets
|
||||||||||||
Revenues
|
664,276 | 591,949 | 533,254 | |||||||||
Pre-tax income
|
77,990 | 84,236 | 73,481 | |||||||||
Asset Management
|
||||||||||||
Revenues
|
226,511 | 196,817 | 177,359 | |||||||||
Pre-tax income
|
66,176 | 46,981 | 30,411 | |||||||||
RJ Bank
|
||||||||||||
Revenues
|
281,992 | 276,770 | 343,366 | |||||||||
Pre-tax income
|
172,993 | 112,009 | 80,011 | |||||||||
Emerging Markets
|
||||||||||||
Revenues
|
43,184 | 16,639 | 14,891 | |||||||||
Pre-tax income (loss)
|
4,531 | (5,446 | ) | (4,886 | ) | |||||||
Securities Lending
|
||||||||||||
Revenues
|
6,432 | 8,837 | 10,269 | |||||||||
Pre-tax income
|
1,488 | 2,721 | 3,651 | |||||||||
Proprietary Capital
|
||||||||||||
Revenues
|
16,805 | 17,029 | 12,742 | |||||||||
Pre-tax income
|
4,391 | 1,728 | 1,035 | |||||||||
Other
|
||||||||||||
Revenues
|
10,524 | 8,056 | 7,153 | |||||||||
Pre-tax loss
|
(85,133 | ) | (40,791 | ) | (19,802 | ) | ||||||
Intersegment eliminations
|
||||||||||||
Revenues
|
(35,828 | ) | (39,682 | ) | (53,977 | ) | ||||||
Pre-tax income
|
- | - | - | |||||||||
Year Ended September 30,
|
||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||
Average balance
|
Interest inc./exp.
|
Average yield/cost
|
Average balance
|
Interest inc./exp.
|
Average yield/cost
|
Average balance
|
Interest inc./exp.
|
Average yield/cost
|
||||||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||||||||||
Margin balances
|
$ | 1,495,931 | $ | 52,361 | 3.50 | % | $ | 1,355,665 | $ | 46,650 | 3.44 | % | $ | 1,185,086 | $ | 37,617 | 3.17 | % | ||||||||||||||||||
Assets segregated pursuant to regulations and other segregated assets
|
2,099,190 | 8,424 | 0.40 | % | 1,861,977 | 7,685 | 0.41 | % | 4,572,808 | 14,786 | 0.32 | % | ||||||||||||||||||||||||
Bank loans, net of unearned income
(1)
|
6,291,748 | 270,057 | 4.25 | % | 6,439,827 | 257,988 | 3.97 | % | 7,497,579 | 320,167 | 4.24 | % | ||||||||||||||||||||||||
Available for sale securities
|
402,229 | 10,815 | 2.69 | % | 529,056 | 17,846 | 3.37 | % | 650,777 | 24,373 | 3.75 | % | ||||||||||||||||||||||||
Trading instruments
|
20,549 | 18,146 | 13,112 | |||||||||||||||||||||||||||||||||
Stock borrow
|
6,035 | 8,448 | 10,269 | |||||||||||||||||||||||||||||||||
Interest-earning assets of consolidated variable interest entities
|
2 | 13 | 71 | |||||||||||||||||||||||||||||||||
Other
|
24,075 | 14,116 | 23,189 | |||||||||||||||||||||||||||||||||
Total interest income
|
392,318 | 370,892 | 443,584 | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Brokerage client liabilities
|
3,456,009 | 3,422 | 0.10 | % | 2,958,026 | 3,688 | 0.12 | % | 5,788,338 | 10,958 | 0.19 | % | ||||||||||||||||||||||||
Bank deposits
(1)
|
6,967,727 | 12,543 | 0.18 | % | 6,882,537 | 16,053 | 0.23 | % | 8,331,432 | 24,023 | 0.29 | % | ||||||||||||||||||||||||
Stock loan
|
1,807 | 3,530 | 3,838 | |||||||||||||||||||||||||||||||||
Borrowed funds
|
3,969 | 6,099 | 7,946 | |||||||||||||||||||||||||||||||||
Senior notes
|
473,112 | 31,320 | 6.62 | % | 299,953 | 26,091 | 8.60 | % | 33,709 | 2,899 | 8.60 | % | ||||||||||||||||||||||||
Loans payable of consolidated variable interest entities
|
6,049 | 4,457 | 4,853 | |||||||||||||||||||||||||||||||||
Other
|
6,720 | 2,933 | 2,436 | |||||||||||||||||||||||||||||||||
Total interest expense
|
65,830 | 62,851 | 56,953 | |||||||||||||||||||||||||||||||||
Net interest income
|
$ | 326,488 | $ | 308,041 | $ | 386,631 |
(1)
|
See Results of Operations – RJ Bank in this MD&A for further information.
|
Year ended September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Securities commissions and fees
|
$ | 1,817,617 | 15 | % | $ | 1,585,371 | 26 | % | $ | 1,262,810 | ||||||||||
Interest
|
76,237 | 21 | % | 63,128 | (4 | )% | 65,589 | |||||||||||||
Account and service fees:
|
||||||||||||||||||||
Client account and service fees
|
123,277 | 4 | % | 118,233 | 38 | % | 85,957 | |||||||||||||
Mutual fund and annuity service fees
|
110,281 | 35 | % | 81,990 | 5 | % | 78,086 | |||||||||||||
Client transaction fees
|
34,162 | (9 | )% | 37,440 | - | 37,596 | ||||||||||||||
Correspondent clearing fees
|
3,454 | 2 | % | 3,390 | (12 | )% | 3,831 | |||||||||||||
Account and service fees – all other
|
215 | 26 | % | 170 | 795 | % | 19 | |||||||||||||
Sub-total account and service fees
|
271,389 | 13 | % | 241,223 | 17 | % | 205,489 | |||||||||||||
Other
|
20,747 | 55 | % | 13,379 | (43 | )% | 23,574 | |||||||||||||
Total revenues
|
2,185,990 | 15 | % | 1,903,101 | 22 | % | 1,557,462 | |||||||||||||
Interest expense
|
8,741 | 22 | % | 7,194 | (52 | )% | 14,891 | |||||||||||||
Net revenues
|
2,177,249 | 15 | % | 1,895,907 | 23 | % | 1,542,571 | |||||||||||||
Non-interest expenses:
|
||||||||||||||||||||
Sales commissions
|
1,332,207 | 14 | % | 1,168,055 | 26 | % | 929,202 | |||||||||||||
Admin & incentive compensation and benefit costs
|
343,097 | 11 | % | 310,184 | 11 | % | 279,666 | |||||||||||||
Communications and information processing
|
70,369 | 17 | % | 59,974 | 2 | % | 58,607 | |||||||||||||
Occupancy and equipment
|
77,099 | - | 77,349 | (2 | )% | 79,072 | ||||||||||||||
Business development
|
55,538 | 13 | % | 49,126 | (11 | )% | 55,488 | |||||||||||||
Clearance and other
|
80,468 | 13 | % | 71,263 | 27 | % | 55,952 | |||||||||||||
Total non-interest expenses
|
1,958,778 | 13 | % | 1,735,951 | 19 | % | 1,457,987 | |||||||||||||
Income before taxes and including noncontrolling interests
|
218,471 | 37 | % | 159,956 | 89 | % | 84,584 | |||||||||||||
Noncontrolling
interests
|
(340 | ) | (514 | ) | (289 | ) | ||||||||||||||
Pre-tax income excluding noncontrolling interests
|
$ | 218,811 | 36 | % | $ | 160,470 | 89 | % | $ | 84,873 | ||||||||||
Margin on net revenues
|
10.0 | % | 8.5 | % | 5.5 | % |
Year ended September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Institutional sales commissions:
|
||||||||||||||||||||
Equity
|
$ | 250,188 | 12 | % | $ | 222,481 | 12 | % | $ | 198,218 | ||||||||||
Fixed income
|
125,770 | (15 | )% | 147,585 | (15 | )% | 174,315 | |||||||||||||
Underwriting fees
|
110,066 | 23 | % | 89,216 | 87 | % | 47,599 | |||||||||||||
Tax credit funds syndication fees
|
36,062 | 141 | % | 14,941 | 238 | % | 4,416 | |||||||||||||
Mergers and acquisitions fees
|
83,131 | 44 | % | 57,783 | 42 | % | 40,607 | |||||||||||||
Private placement fees
|
1,940 | 1 | % | 1,914 | 87 | % | 1,025 | |||||||||||||
Trading profits
|
19,981 | (37 | )% | 31,654 | (24 | )% | 41,407 | |||||||||||||
Interest
|
21,579 | 19 | % | 18,191 | 34 | % | 13,608 | |||||||||||||
Other
|
15,559 | 90 | % | 8,184 | (32 | )% | 12,059 | |||||||||||||
Total revenues
|
664,276 | 12 | % | 591,949 | 11 | % | 533,254 | |||||||||||||
Interest expense
|
16,612 | 30 | % | 12,814 | 19 | % | 10,808 | |||||||||||||
Net revenues
|
647,664 | 12 | % | 579,135 | 11 | % | 522,446 | |||||||||||||
Non-interest expenses:
|
||||||||||||||||||||
Sales commissions
|
127,974 | - | 128,432 | (2 | )% | 130,463 | ||||||||||||||
Admin & incentive compensation and benefit costs
|
320,209 | 22 | % | 262,791 | 19 | % | 220,030 | |||||||||||||
Communications and information processing
|
44,907 | 18 | % | 37,925 | 7 | % | 35,350 | |||||||||||||
Occupancy and equipment
|
23,273 | 19 | % | 19,575 | - | 19,565 | ||||||||||||||
Business development
|
34,481 | 29 | % | 26,666 | 19 | % | 22,500 | |||||||||||||
Clearance and other
|
41,181 | 13 | % | 36,382 | (7 | )% | 39,013 | |||||||||||||
Total non-interest expenses
|
592,025 | 16 | % | 511,771 | 10 | % | 466,921 | |||||||||||||
Income before taxes and including noncontrolling interests
|
55,639 | (17 | )% | 67,364 | 21 | % | 55,525 | |||||||||||||
Noncontrolling
interests
|
(22,351 | ) | (16,872 | ) | (17,956 | ) | ||||||||||||||
Pre-tax income excluding noncontrolling interests
|
$ | 77,990 | (7 | )% | $ | 84,236 | 15 | % | $ | 73,481 |
Year ended September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Investment advisory fees
|
$ | 188,817 | 21 | % | $ | 156,266 | 16 | % | $ | 135,223 | ||||||||||
Other
|
37,694 | (7 | )% | 40,551 | (4 | )% | 42,136 | |||||||||||||
Total revenues
|
226,511 | 15 | % | 196,817 | 11 | % | 177,359 | |||||||||||||
Expenses:
|
||||||||||||||||||||
Admin & incentive compensation and benefit costs
|
76,594 | 10 | % | 69,931 | 13 | % | 61,907 | |||||||||||||
Communications and information processing
|
15,307 | (16 | )% | 18,116 | (9 | )% | 19,890 | |||||||||||||
Occupancy and equipment
|
3,670 | (6 | )% | 3,904 | (1 | )% | 3,929 | |||||||||||||
Business development
|
7,365 | 18 | % | 6,254 | 6 | % | 5,893 | |||||||||||||
Investment sub-advisory fees
|
27,606 | 12 | % | 24,701 | 16 | % | 21,314 | |||||||||||||
Other
|
28,392 | 10 | % | 25,840 | (24 | )% | 33,891 | |||||||||||||
Total expenses
|
158,934 | 7 | % | 148,746 | 1 | % | 146,824 | |||||||||||||
Income before taxes and including noncontrolling interests
|
67,577 | 41 | % | 48,071 | 57 | % | 30,535 | |||||||||||||
Noncontrolling interests
|
1,401 | 1,090 | 124 | |||||||||||||||||
Pre-tax income excluding noncontrolling interests
|
$ | 66,176 | 41 | % | $ | 46,981 | 54 | % | $ | 30,411 |
September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Assets under management:
|
||||||||||||||||||||
Eagle Asset Management, Inc.
|
$ | 16,091,575 | 3 | % | $ | 15,566,954 | 15 | % | $ | 13,582,832 | ||||||||||
Eagle money market funds
|
- | - | % | - | (100 | )% | 2,966,819 | |||||||||||||
Raymond James Consulting Services
|
8,356,269 | (1 | )% | 8,458,178 | 8 | % | 7,833,081 | |||||||||||||
Unified managed accounts
|
1,676,737 | 128 | % | 734,750 | 197 | % | 247,721 | |||||||||||||
Freedom accounts & other managed programs
|
9,523,430 | 8 | % | 8,791,332 | 21 | % | 7,256,673 | |||||||||||||
Total assets under management
|
35,648,011 | 6 | % | 33,551,214 | 5 | % | 31,887,126 | |||||||||||||
Less: assets managed for affiliated entities
|
(3,578,662 | ) | 1 | % | (3,544,197 | ) | 18 | % | (3,008,675 | ) | ||||||||||
Net assets under management
|
$ | 32,069,349 | 7 | % | $ | 30,007,017 | 4 | % | $ | 28,878,451 | ||||||||||
Non-managed fee-based assets:
|
||||||||||||||||||||
Passport
|
$ | 24,008,105 | 6 | % | $ | 22,707,602 | 17 | % | $ | 19,451,710 | ||||||||||
Ambassador
|
13,554,913 | 29 | % | 10,479,432 | 43 | % | 7,327,402 | |||||||||||||
Other non-managed fee-based assets
|
2,196,199 | 9 | % | 2,022,785 | 21 | % | 1,671,029 | |||||||||||||
Total
|
$ | 39,759,217 | 13 | % | $ | 35,209,819 | 24 | % | $ | 28,450,141 |
Year ended September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest income
|
$ | 284,640 | 2 | % | $ | 278,326 | (20 | )% | $ | 349,110 | ||||||||||
Interest expense
|
13,334 | (29 | )% | 18,761 | (30 | )% | 26,717 | |||||||||||||
Net interest income
|
271,306 | 5 | % | 259,565 | (19 | )% | 322,393 | |||||||||||||
Other loss
|
(2,648 | ) | (70 | )% | (1,556 | ) | 73 | % | (5,744 | ) | ||||||||||
Net revenues
|
268,658 | 4 | % | 258,009 | (19 | )% | 316,649 | |||||||||||||
Non-interest expenses:
|
||||||||||||||||||||
Employee compensation and benefits
|
14,968 | 30 | % | 11,488 | 10 | % | 10,425 | |||||||||||||
Communications and information processing
|
2,402 | 42 | % | 1,687 | 9 | % | 1,552 | |||||||||||||
Occupancy and equipment
|
842 | (4 | )% | 873 | (9 | )% | 956 | |||||||||||||
Provision for loan losses
|
33,655 | (58 | )% | 80,413 | (53 | )% | 169,341 | |||||||||||||
FDIC insurance premiums
|
8,855 | (21 | )% | 11,206 | (30 | )% | 15,955 | |||||||||||||
Affiliate deposit account servicing fees
|
20,733 | (7 | )% | 22,245 | (11 | )% | 25,020 | |||||||||||||
Other
|
14,210 | (21 | )% | 18,088 | 35 | % | 13,389 | |||||||||||||
Total non-interest expenses
|
95,665 | (34 | )% | 146,000 | (38 | )% | 236,638 | |||||||||||||
Pre-tax income
|
$ | 172,993 | 54 | % | $ | 112,009 | 40 | % | $ | 80,011 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Net loan charge-offs:
|
||||||||||||
C&I loans
|
$ | (458 | ) | $ | - | $ | - | |||||
CRE construction loans
|
- | - | (3,222 | ) | ||||||||
CRE loans
|
(13,534 | ) | (54,053 | ) | (77,316 | ) | ||||||
Residential/mortgage loans
|
(20,757 | ) | (29,548 | ) | (26,686 | ) | ||||||
Consumer loans
|
(246 | ) | - | - | ||||||||
Total
|
$ | (34,995 | ) | $ | (83,601 | ) | $ | (107,224 | ) | |||
As of September 30,
|
||||||||||||
2011 | 2010 | 2009 | ||||||||||
(in thousands)
|
||||||||||||
Allowance for loan losses:
|
||||||||||||
Loans held for sale
|
$ | 5 | $ | 23 | $ | 7 | ||||||
Loans held for investment:
|
||||||||||||
C&I loans
|
81,267 | 60,464 | 84,841 | |||||||||
CRE construction loans
|
490 | 4,473 | 3,237 | |||||||||
CRE loans
|
30,752 | 47,771 | 34,018 | |||||||||
Residential/mortgage loans
|
33,210 | 34,297 | 28,081 | |||||||||
Consumer loans
|
20 | 56 | 88 | |||||||||
Total
|
$ | 145,744 | $ | 147,084 | $ | 150,272 | ||||||
Nonperforming assets:
|
||||||||||||
Nonperforming loans:
|
||||||||||||
C& I loans
|
$ | 25,685 | $ | - | $ | - | ||||||
CRE loans
|
15,842 | 67,901 | 86,422 | |||||||||
Residential mortgage loans:
|
||||||||||||
Residential mortgage loans
|
91,682 | 85,852 | 71,849 | |||||||||
Home equity loans/lines
|
114 | 230 | 111 | |||||||||
Total nonperforming loans
|
133,323 | 153,983 | 158,382 | |||||||||
Other real estate owned:
|
||||||||||||
CRE
|
7,707 | 19,486 | 4,646 | |||||||||
Residential:
|
||||||||||||
First mortgage
|
6,852 | 8,439 | 4,045 | |||||||||
Home equity
|
13 | - | - | |||||||||
Total other real estate owned
|
14,572 | 27,925 | 8,691 | |||||||||
Total nonperforming assets
|
$ | 147,895 | $ | 181,908 | $ | 167,073 |
Total loans:
|
||||||||||||
Loans held for sale, net
(1)
|
$ | 102,236 | $ | 6,114 | $ | 40,484 | ||||||
Loans held for investment:
|
||||||||||||
C&I loans
|
4,100,939 | 3,232,723 | 3,079,916 | |||||||||
CRE construction loans
|
29,087 | 65,512 | 163,951 | |||||||||
CRE loans
|
742,889 | 937,669 | 1,080,160 | |||||||||
Residential/mortgage loans
|
1,756,486 | 2,015,331 | 2,396,995 | |||||||||
Consumer loans
|
7,438 | 23,940 | 22,816 | |||||||||
Net unearned income and deferred expenses
|
(45,417 | ) | (39,276 | ) | (40,077 | ) | ||||||
Total loans held for investment
|
6,591,422 | 6,235,899 | 6,703,761 | |||||||||
Total loans
|
$ | 6,693,658 | $ | 6,242,013 | $ | 6,744,245 |
(1)
|
Net of unearned income and deferred expenses.
|
Year ended September 30,
|
|||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
|||||||||||||||||||||||||||||||||
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
Average
balance
(3)
|
Interest
inc./exp.
(3)
|
Average
yield/ cost
(3)
|
Average
balance
(3)
|
Interest
inc./exp.
(3)
|
Average
yield/
cost
(3)
|
|||||||||||||||||||||||||||
($ in thousands)
|
|||||||||||||||||||||||||||||||||||
Interest-earning banking assets:
|
|||||||||||||||||||||||||||||||||||
Loans, net of unearned income
(1)
|
|
||||||||||||||||||||||||||||||||||
Loans held for sale
|
$ | 33,354 | $ | 881 | 2.64 | % | $ | 39,049 | $ | 1,256 | 3.22 | % | $ | 18,281 | $ | 720 | 3.94 | % | |||||||||||||||||
Loans held for investment
|
|||||||||||||||||||||||||||||||||||
C&I loans
|
3,540,449 | 156,934 | 4.39 | % | 3,126,672 | 119,792 | 3.74 | % | 2,589,452 | 103,231 | 3.93 | % | |||||||||||||||||||||||
CRE construction loans
|
63,650 | 1,740 | 2.70 | % | 80,685 | 1,844 | 2.25 | % | 334,863 | 8,899 | 2.62 | % | |||||||||||||||||||||||
CRE loans
|
795,841 | 30,369 | 3.76 | % | 972,619 | 32,889 | 3.34 | % | 1,831,357 | 65,854 | 3.65 | % | |||||||||||||||||||||||
Residential mortgage loans
|
1,851,516 | 80,007 | 4.27 | % | 2,198,881 | 101,775 | 4.57 | % | 2,703,736 | 141,075 | 5.15 | % | |||||||||||||||||||||||
Consumer loans
|
6,938 | 126 | 1.82 | % | 21,921 | 432 | 1.97 | % | 19,890 | 388 | 1.95 | % | |||||||||||||||||||||||
Total loans, net
|
6,291,748 | 270,057 | 4.25 | % | 6,439,827 | 257,988 | 3.97 | % | 7,497,579 | 320,167 | 4.24 | % | |||||||||||||||||||||||
Reverse repurchase agreements
|
- | - | - | 171,507 | 147 | 0.09 | % | 565,055 | 1,321 | 0.23 | % | ||||||||||||||||||||||||
Agency MBS
|
182,303 | 1,286 | 0.71 | % | 235,491 | 1,826 | 0.78 | % | 278,315 | 3,802 | 1.37 | % | |||||||||||||||||||||||
Non-agency CMOs
|
219,927 | 9,521 | 4.33 | % | 293,565 | 16,020 | 5.46 | % | 372,462 | 20,571 | 5.52 | % | |||||||||||||||||||||||
Money market funds, cash and cash equivalents
|
993,167 | 2,619 | 0.26 | % | 546,703 | 1,780 | 0.33 | % | 369,702 | 2,868 | 0.78 | % | |||||||||||||||||||||||
FHLB stock and other
|
146,597 | 1,157 | 0.79 | % | 102,387 | 565 | 0.55 | % | 46,713 | 381 | 0.82 | % | |||||||||||||||||||||||
Total interest-earning banking assets
|
7,833,742 | $ | 284,640 | 3.60 | % | 7,789,480 | $ | 278,326 | 3.55 | % | 9,129,826 | $ | 349,110 | 3.80 | % | ||||||||||||||||||||
Non-interest-earning banking assets:
|
|||||||||||||||||||||||||||||||||||
Allowance for loan losses
|
(144,436 | ) | (147,364 | ) | (120,459 | ) | |||||||||||||||||||||||||||||
Unrealized loss on available for sale securities
|
(42,280 | ) | (71,476 | ) | (133,800 | ) | |||||||||||||||||||||||||||||
Other assets
|
252,211 | 231,872 | 183,205 | ||||||||||||||||||||||||||||||||
Total non-interest-earning banking assets
|
65,495 | 13,032 | (71,054 | ) | |||||||||||||||||||||||||||||||
Total banking assets
|
$ | 7,899,237 | $ | 7,802,512 | $ | 9,058,772 | |||||||||||||||||||||||||||||
Interest-bearing banking liabilities:
|
|||||||||||||||||||||||||||||||||||
Deposits:
|
|||||||||||||||||||||||||||||||||||
Certificates of deposit
|
$ | 227,635 | $ | 6,228 | 2.74 | % | $ | 206,137 | $ | 6,563 | 3.18 | % | $ | 212,358 | $ | 8,229 | 3.88 | % | |||||||||||||||||
Money market, savings, and NOW accounts
(2)
|
6,740,092 | 6,377 | 0.09 | % | 6,676,400 | 9,490 | 0.14 | % | 8,119,074 | 15,794 | 0.19 | % | |||||||||||||||||||||||
FHLB advances and other
|
31,335 | 729 | 2.30 | % | 74,925 | 2,708 | 3.57 | % | 58,122 | 2,694 | 4.57 | % | |||||||||||||||||||||||
Total interest-bearing banking liabilities
|
6,999,062 | $ | 13,334 | 0.19 | % | 6,957,462 | $ | 18,761 | 0.27 | % | 8,389,554 | $ | 26,717 | 0.32 | % | ||||||||||||||||||||
Non-interest-bearing banking liabilities
|
55,649 | 27,472 | 26,057 | ||||||||||||||||||||||||||||||||
Total banking liabilities
|
7,054,711 | 6,984,934 | 8,415,611 | ||||||||||||||||||||||||||||||||
Total banking shareholder’s equity
|
844,526 | 817,578 | 643,161 | ||||||||||||||||||||||||||||||||
Total banking liabilities and shareholders’ equity
|
$ | 7,899,237 | $ | 7,802,512 | $ | 9,058,772 |
Year ended September 30,
|
||||||||||||||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||||||||||||||
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
Average
balance
(3)
|
Interest
inc./exp.
(3)
|
Average
yield/
cost
(3)
|
Average
balance
(3)
|
Interest
inc./exp
(3)
|
Average
yield/
cost
(3)
|
||||||||||||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||||||||||||||
(continued from previous page)
|
||||||||||||||||||||||||||||||||||||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
$ | 834,680 | $ | 271,306 | $ | 832,018 | $ | 259,565 | $ | 740,272 | $ | 322,393 | ||||||||||||||||||||||||
Bank net interest:
:
|
||||||||||||||||||||||||||||||||||||
Spread
|
3.41 | % | 3.28 | % | 3.48 | % | ||||||||||||||||||||||||||||||
Margin (net yield on interest-earning banking assets)
|
3.43 | % | 3.31 | % | 3.50 | % | ||||||||||||||||||||||||||||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
111.93 | % | 111.96 | % | 108.82 | % | ||||||||||||||||||||||||||||||
Return on average:
|
||||||||||||||||||||||||||||||||||||
Total banking assets
|
1.39 | % | 0.90 | % | 0.56 | % | ||||||||||||||||||||||||||||||
Total banking shareholder's equity
|
13.00 | % | 8.64 | % | 7.86 | % | ||||||||||||||||||||||||||||||
Average equity to average total banking assets
|
10.69 | % | 10.48 | % | 7.10 | % |
(1)
|
Nonaccrual loans are included in the average loan balances. Payment or income received on impaired nonaccrual loans are applied to principal. Income on other nonaccrual loans is recognized on a cash basis. Fee income on loans included in interest income for the years ended September 30, 2011, 2010, and 2009, was $38 million, $35 million, and $21 million, respectively.
|
(2)
|
Negotiable Order of Withdrawal (“NOW”) account.
|
(3)
|
During the December 2010 quarter end, RJ Bank reclassified certain average loan balances to more closely align these balances with its assignment of credit risk utilized within the allowance for loan losses evaluation. As a result, the average loan balances, related interest income and the respective yield calculations presented above differ from those previously reported.
|
Year ended September 30,
|
||||||||||||||||||||||||
2011 compared to 2010
|
2010 compared to 2009
|
|||||||||||||||||||||||
Increase (decrease) due to
|
Increase (decrease) due to
|
|||||||||||||||||||||||
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Interest revenue:
|
||||||||||||||||||||||||
Interest-earning banking assets:
|
||||||||||||||||||||||||
Loans, net of unearned income:
|
||||||||||||||||||||||||
Loans held for sale
|
$ | (183 | ) | $ | (192 | ) | $ | (375 | ) | $ | 818 | $ | (282 | ) | $ | 536 | ||||||||
Loans held for investment
|
||||||||||||||||||||||||
C&I loans
|
15,853 | 21,289 | 37,142 | 21,417 | (4,856 | ) | 16,561 | |||||||||||||||||
CRE construction loans
|
(390 | ) | 286 | (104 | ) | (6,754 | ) | (301 | ) | (7,055 | ) | |||||||||||||
CRE loans
|
(5,978 | ) | 3,458 | (2,520 | ) | (30,879 | ) | (2,086 | ) | (32,965 | ) | |||||||||||||
Residential mortgage loans
(1)
|
(16,077 | ) | (12,068 | ) | (28,145 | ) | (26,342 | ) | (12,958 | ) | (39,300 | ) | ||||||||||||
Consumer loans
|
(295 | ) | (11 | ) | (306 | ) | 40 | 4 | 44 | |||||||||||||||
Reverse repurchase agreements
|
(147 | ) | - | (147 | ) | (919 | ) | (255 | ) | (1,174 | ) | |||||||||||||
Agency MBS
|
(412 | ) | (128 | ) | (540 | ) | (586 | ) | (1,390 | ) | (1,976 | ) | ||||||||||||
Non-agency CMOs
|
(4,018 | ) | (2,481 | ) | (6,499 | ) | (4,357 | ) | (194 | ) | (4,551 | ) | ||||||||||||
Money market funds, cash and cash equivalents
|
1,454 | (615 | ) | 839 | 1,372 | (2,460 | ) | (1,088 | ) | |||||||||||||||
FHLB stock and other
|
244 | 348 | 592 | 454 | (270 | ) | 184 | |||||||||||||||||
Total interest-earning banking assets
|
(9,949 | ) | 9,886 | (63 | ) | (45,736 | ) | (25,048 | ) | (70,784 | ) | |||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Interest-bearing banking liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Certificates of deposit
|
684 | (1,019 | ) | (335 | ) | (241 | ) | (1,425 | ) | (1,666 | ) | |||||||||||||
Money market, savings and NOW accounts
|
91 | (3,204 | ) | (3,113 | ) | (2,806 | ) | (3,498 | ) | (6,304 | ) | |||||||||||||
FHLB advances and other
|
(1,576 | ) | (403 | ) | (1,979 | ) | 779 | (765 | ) | 14 | ||||||||||||||
Total interest-bearing banking liabilities
|
(801 | ) | (4,626 | ) | (5,427 | ) | (2,268 | ) | (5,688 | ) | (7,956 | ) | ||||||||||||
Change in net interest income
|
$ | (9,148 | ) | $ | 14,512 | $ | 5,364 | $ | (43,468 | ) | $ | (19,360 | ) | $ | (62,828 | ) |
(1)
|
Adjusted to exclude a $6 million December 2010 quarter end correction of an accumulated interest income understatement in prior periods related to purchased residential mortgage loan pools.
|
Year ended September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Securities commissions and fees
|
$ | 10,736 | 61 | % | $ | 6,677 | 8 | % | $ | 6,163 | ||||||||||
Investment banking
|
19,755 |
NM
|
324 | (68 | )% | 999 | ||||||||||||||
Investment advisory fees
|
6,544 | 55 | % | 4,213 | 211 | % | 1,355 | |||||||||||||
Interest income
|
1,383 | 310 | % | 337 | (77 | )% | 1,456 | |||||||||||||
Trading profits
|
4,249 | (9 | )% | 4,657 | 3 | % | 4,531 | |||||||||||||
Other income
|
517 | 20 | % | 431 | 11 | % | 387 | |||||||||||||
Total revenues
|
43,184 | 160 | % | 16,639 | 12 | % | 14,891 | |||||||||||||
Interest expense
|
184 | (25 | )% | 244 | (42 | )% | 421 | |||||||||||||
Net revenues
|
43,000 | 162 | % | 16,395 | 13 | % | 14,470 | |||||||||||||
Non-interest expenses:
|
||||||||||||||||||||
Compensation expense
|
26,185 | 74 | % | 15,077 | 5 | % | 14,381 | |||||||||||||
Other expense
|
11,048 | 43 | % | 7,699 | 6 | % | 7,296 | |||||||||||||
Total non-interest expenses
|
37,233 | 63 | % | 22,776 | 5 | % | 21,677 | |||||||||||||
Income (loss) before taxes and including noncontrolling interests
|
5,767 | 190 | % | (6,381 | ) | 11 | % | (7,207 | ) | |||||||||||
Noncontrolling interests
|
1,236 | (935 | ) | (2,321 | ) | |||||||||||||||
Pre-tax income (loss) excluding noncontrolling interests
|
$ | 4,531 | 183 | % | $ | (5,446 | ) | (11 | )% | $ | (4,886 | ) |
Year ended September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Interest income and expense:
|
||||||||||||||||||||
Interest income
|
$ | 6,035 | (29 | )% | $ | 8,448 | (18 | )% | $ | 10,269 | ||||||||||
Interest expense
|
1,807 | (49 | )% | 3,530 | (8 | )% | 3,838 | |||||||||||||
Net interest income
|
4,228 | (14 | )% | 4,918 | (24 | )% | 6,431 | |||||||||||||
Other income
|
397 | 2 | % | 389 |
NM
|
- | ||||||||||||||
Net revenues
|
4,625 | (13 | )% | 5,307 | (17 | )% | 6,431 | |||||||||||||
Non-interest expenses
|
3,137 | 21 | % | 2,586 | (7 | )% | 2,780 | |||||||||||||
Pre-tax income
|
$ | 1,488 | (45 | )% | $ | 2,721 | (25 | )% | $ | 3,651 |
Year ended September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
(1)
|
$ | 473 | (76 | )% | $ | 1,953 | 1029 | % | $ | 173 | ||||||||||
Investment advisory fees
|
950 | (14 | )% | 1,100 | 9 | % | 1,013 | |||||||||||||
Other
|
15,382 | 10 | % | 13,976 | 21 | % | 11,556 | |||||||||||||
Total revenues
|
16,805 | (1 | )% | 17,029 | 34 | % | 12,742 | |||||||||||||
Expenses:
|
||||||||||||||||||||
Compensation expense
|
2,151 | 21 | % | 1,785 | (12 | )% | 2,037 | |||||||||||||
Other expenses
|
711 | (65 | )% | 2,051 | 28 | % | 1,603 | |||||||||||||
Total expenses
|
2,862 | (25 | )% | 3,836 | 5 | % | 3,640 | |||||||||||||
Income before taxes and including noncontrolling interests
|
13,943 | 6 | % | 13,193 | 45 | % | 9,102 | |||||||||||||
Noncontrolling interests
|
9,552 | 11,465 | 8,067 | |||||||||||||||||
Pre-tax income excluding noncontrolling interests
|
$ | 4,391 | 154 | % | $ | 1,728 | 67 | % | $ | 1,035 |
(1)
|
Includes dividends received.
|
Year ended September 30,
|
||||||||||||||||||||
2011
|
% change
|
2010
|
% change
|
2009
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest income
|
$ | 8,086 | 29 | % | $ | 6,269 | (17 | )% | $ | 7,597 | ||||||||||
Other
|
2,438 | 36 | % | 1,787 |
NM
|
(444 | ) | |||||||||||||
Total revenues
|
10,524 | 31 | % | 8,056 | 13 | % | 7,153 | |||||||||||||
Interest expense
|
31,374 | 20 | % | 26,113 | 462 | % | 4,647 | |||||||||||||
Net revenues
|
(20,850 | ) | (15 | )% | (18,057 | ) |
NM
|
2,506 | ||||||||||||
Loss on auction rate securities repurchased
|
41,391 | - | - | - | - | |||||||||||||||
Other expense
|
22,892 | 1 | % | 22,734 | 2 | % | 22,308 | |||||||||||||
Total non-interest expenses
|
64,283 | 183 | % | 22,734 | 2 | % | 22,308 | |||||||||||||
Pre-tax loss
|
$ | (85,133 | ) | (109 | )% | $ | (40,791 | ) | (106 | )% | $ | (19,802 | ) |
Committed
secured
|
Uncommitted
secured
(1)
|
Uncommitted
unsecured
(1)
|
Total
|
|||||||||||||
($ in thousands)
|
||||||||||||||||
RJ&A
|
$ | 425,000 | $ | 1,035,100 | $ | 375,000 | $ | 1,835,100 | ||||||||
RJF
|
- | - | 100,000 | 100,000 | ||||||||||||
Total
|
$ | 425,000 | $ | 1,035,100 | $ | 475,000 | $ | 1,935,100 | ||||||||
Total number of agreements
|
4 | 6 | 7 |
Repurchase transactions
|
Reverse repurchase transactions
|
|||||||||||||||
For the period ended
:
|
Average daily
balance outstanding
|
End of period
balance outstanding
|
Average daily
balance outstanding
|
End of period
balance outstanding
|
||||||||||||
(in thousands)
|
||||||||||||||||
September 30, 2011
|
$ | 145,574 | $ | 188,745 | $ | 425,248 | $ | 398,247 | ||||||||
June 30, 2011
|
62,527 | 64,988 | 473,739 | 470,407 | ||||||||||||
March 31, 2011
|
66,848 | 62,292 | 444,640 | 390,376 | ||||||||||||
December 31, 2010
|
76,973 | 166,815 | 402,804 | 456,239 | ||||||||||||
September 30, 2010
|
158,489 | 233,346 | 326,927 | 344,652 |
Rating Agency
|
Rating
|
Outlook
|
Standard and Poor’s
|
BBB
|
Stable
|
Moody’s Investor Service
|
Baa2
|
Stable
|
Total
|
2012
|
2013
|
2014
|
2015
|
2016
|
Thereafter
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Debt
(1)
|
$ | 611,968 | $ | 9,841 | $ | 6,960 | $ | 3,860 | $ | 4,086 | $ | 254,325 | $ | 332,896 | ||||||||||||||
Loans payable of consolidated variable interest entities
(2)
|
99,982 | 21,332 | 18,771 | 19,088 | 17,958 | 12,978 | 9,855 | |||||||||||||||||||||
Operating leases
|
229,671 | 45,996 | 41,811 | 33,475 | 27,291 | 23,732 | 57,366 | |||||||||||||||||||||
Investments - private equity partnerships
|
31,073 | 31,073 | - | - | - | - | - | |||||||||||||||||||||
Certificates of deposit
(3)
|
245,340 | 49,755 | 39,429 | 27,331 | 65,407 | 63,418 | - | |||||||||||||||||||||
Commitments to extend credit - RJ Bank
(4)
|
2,263,962 | 2,263,962 | - | - | - | - | - | |||||||||||||||||||||
RJ Bank loans purchased, not yet settled
|
72,700 | 72,700 | - | - | - | - | - | |||||||||||||||||||||
RJ Bank commitment to purchase Canadian loans
(5)
|
500,000 | 500,000 | - | - | - | - | - | |||||||||||||||||||||
Commitments to real estate entities
|
2,876 | 2,876 | - | - | - | - | - | |||||||||||||||||||||
Commitment to purchase real estate in Pasco County, Florida
(6)
|
3,500 | 3,500 | - | - | - | - | - | |||||||||||||||||||||
Underwriting commitments
|
861 | 861 | - | - | - | - | - | |||||||||||||||||||||
Naming rights for Raymond James stadium
|
16,705 | 3,687 | 3,835 | 3,988 | 4,148 | 1,047 | - | |||||||||||||||||||||
Loans and commitments to financial advisors
|
20,932 | 17,761 | 2,667 | 504 | - | - | - | |||||||||||||||||||||
Total
|
$ | 4,099,570 | $ | 3,023,344 | $ | 113,473 | $ | 88,246 | $ | 118,890 | $ | 355,500 | $ | 400,117 |
(1)
|
See Notes 12 and 14 of the Notes to Consolidated Financial Statements for additional information.
|
(2)
|
Loans which are non-recourse to us. See Note 13 of the Notes to Consolidated Financial Statements for additional information.
|
(3)
|
See Note 11 of the Notes to Consolidated Financial Statements for additional information.
|
(4)
|
See Note 23 of the Notes to Consolidated Financial Statements for additional information.
|
(5)
|
See discussion of this commitment to purchase Canadian loans discussed in the RJ Bank portion of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
|
(6)
|
See discussion of this commitment in Item 2, “Properties.”
|
Year ended September 30, 2011
|
VaR at September 30,
|
|||||||||||||||||||
High
|
Low
|
Daily
a
verage
|
2011
|
2010
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Daily VaR
|
$ | 1,049 | $ | 211 | $ | 644 | $ | 441 | $ | 247 | ||||||||||
Related portfolio value (net)
(1)
|
204,955 | 299,698 | 212,648 | 220,436 | 239,845 | |||||||||||||||
VaR as a percent of portfolio value
|
0.51 | % | 0.07 | % | 0.31 | % | 0.20 | % | 0.10 | % |
Changes in rate
|
Net interest income
|
Projected change in
net interest income
|
||||||||
($ in thousands)
|
||||||||||
+300 | $ | 314,018 | 2.02 | % | ||||||
+200 | 317,398 | 3.12 | % | |||||||
+100 | 317,071 | 3.02 | % | |||||||
- | 307,789 | - | ||||||||
-100 | 287,719 | (6.52 | )% |
Repricing opportunities
|
||||||||||||||||
0 - 6 months
|
7 - 12 months
|
1 - 5 years
|
5 or more years
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Interest-earning assets:
|
||||||||||||||||
Loans
|
$ | 5,704,839 | $ | 635,639 | $ | 336,180 | $ | 62,588 | ||||||||
Available for sale securities
|
177,370 | 26,859 | 105,025 | 61,822 | ||||||||||||
Other investments
|
1,912,713 | - | - | - | ||||||||||||
Total interest-earning assets
|
7,794,922 | 662,498 | 441,205 | 124,410 | ||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||
Transaction and savings accounts
|
7,493,982 | - | - | - | ||||||||||||
Certificates of deposit
|
27,941 | 21,814 | 195,585 | - | ||||||||||||
Total interest-bearing liabilities
|
7,521,923 | 21,814 | 195,585 | - | ||||||||||||
Gap
|
272,999 | 640,684 | 245,620 | 124,410 | ||||||||||||
Cumulative gap
|
$ | 272,999 | $ | 913,683 | $ | 1,159,303 | $ | 1,283,713 |
Due in
|
||||||||||||||||
> One year -
|
||||||||||||||||
One year or less
|
five years
|
> 5 years
|
Total
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Loans held for sale
|
$ | - | $ | - | $ | 92,748 | $ | 92,748 | ||||||||
Loans held for investment:
|
||||||||||||||||
C&I loans
|
110,566 | 2,597,386 | 1,392,987 | 4,100,939 | ||||||||||||
CRE construction loans
|
22,939 | 6,148 | - | 29,087 | ||||||||||||
CRE loans
|
344,451 | 374,789 | 23,649 | 742,889 | ||||||||||||
Residential mortgage loans
|
729 | 13,191 | 1,742,566 | 1,756,486 | ||||||||||||
Consumer loans
|
7,064 | 374 | - | 7,438 | ||||||||||||
Total loans held for investment
|
485,749 | 2,991,888 | 3,159,202 | 6,636,839 | ||||||||||||
Total loans
|
$ | 485,749 | $ | 2,991,888 | $ | 3,251,950 | $ | 6,729,587 |
Interest rate type
|
||||||||||||
Fixed
|
Adjustable
|
Total
(1)
|
||||||||||
(in thousands)
|
||||||||||||
Loans held for sale
|
$ | 2,712 | $ | 90,036 | $ | 92,748 | ||||||
Loans held for investment:
|
||||||||||||
C&I loans
|
3,701 | 3,986,672 | 3,990,373 | |||||||||
CRE construction loans
|
- | 6,148 | 6,148 | |||||||||
CRE loans
|
1,722 | 396,716 | 398,438 | |||||||||
Residential mortgage loans
|
117,023 | 1,638,734 | (2) | 1,755,757 | ||||||||
Consumer loans
|
- | 374 | 374 | |||||||||
Total loans held for investment
|
122,446 | 6,028,644 | 6,151,090 | |||||||||
Total loans
|
$ | 125,158 | $ | 6,118,680 | $ | 6,243,838 |
(1)
|
Excludes any net unearned income and deferred expenses.
|
(2)
|
See the “Credit Risk” discussion within Item 7A of this Form 10-K for additional information regarding RJ Bank’s interest-only loan portfolio and related repricing schedule.
|
Year ended September 30,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Allowance for loan losses, beginning of period
|
$ | 147,084 | $ | 150,272 | $ | 88,155 | $ | 47,022 | $ | 18,694 | ||||||||||
Provision for loan losses
|
33,655 | 80,413 | 169,341 | 54,749 | 29,410 | |||||||||||||||
Charge-offs:
|
||||||||||||||||||||
C&I loans
|
(458 | ) | ||||||||||||||||||
CRE construction loans
|
- | - | (3,222 | ) | - | (629 | ) | |||||||||||||
CRE loans
|
(15,204 | ) | (56,402 | ) | (77,317 | ) | (10,169 | ) | - | |||||||||||
Residential mortgage loans
|
(22,501 | ) | (30,837 | ) | (27,314 | ) | (3,745 | ) | (454 | ) | ||||||||||
Consumer
|
(255 | ) | - | - | - | - | ||||||||||||||
Total charge-offs
|
(38,418 | ) | (87,239 | ) | (107,853 | ) | (13,914 | ) | (1,083 | ) | ||||||||||
Recoveries:
|
||||||||||||||||||||
CRE loans
|
1,670 | 2,349 | 1 | - | - | |||||||||||||||
Residential mortgage loans
|
1,744 | 1,289 | 628 | 298 | 1 | |||||||||||||||
Consumer
|
9 | - | - | - | - | |||||||||||||||
Total recoveries
|
3,423 | 3,638 | 629 | 298 | 1 | |||||||||||||||
Net charge-offs
|
(34,995 | ) | (83,601 | ) | (107,224 | ) | (13,616 | ) | (1,082 | ) | ||||||||||
Allowance for loan losses, end of period
|
$ | 145,744 | $ | 147,084 | $ | 150,272 | $ | 88,155 | $ | 47,022 | ||||||||||
Allowance for loan losses to total bank loans outstanding
|
2.18 | % | 2.36 | % | 2.23 | % | 1.23 | % | 1.00 | % |
Year ended September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||
Net loan
charge-off
amount
|
% of avg.
outstanding
loans
|
Net loan
charge-off
amount
|
% of avg.
outstanding
loans
|
Net loan
charge-off
amount
|
% of avg.
outstanding
loans
|
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
C&I loans
|
$ | (458 | ) | 0.01 | % | $ | - | - | $ | - | - | |||||||||||||
CRE construction loans
|
- | - | - | - | (3,222 | ) | 0.96 | % | ||||||||||||||||
CRE loans
|
(13,534 | ) | 1.70 | % | (54,053 | ) | 5.56 | % | (77,316 | ) | 4.22 | % | ||||||||||||
Residential mortgage loans
|
(20,757 | ) | 1.12 | % | (29,548 | ) | 1.34 | % | (26,686 | ) | 0.99 | % | ||||||||||||
Consumer loans
|
(246 | ) | 3.55 | % | - | - | - | - | ||||||||||||||||
Total
|
$ | (34,995 | ) | 0.56 | % | $ | (83,601 | ) | 1.30 | % | $ | (107,224 | ) | 1.43 | % |
Year ended September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
2009
|
||||||||||||||||||||||
Nonperforming
loan balance
|
Allowance for
loan losses
balance
|
Nonperforming
loan balance
|
Allowance for
loan losses
balance
|
Nonperforming
loan balance
|
Allowance for
loan losses
balance
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Loans held for sale
|
$ | - | $ | (5 | ) | $ | - | $ | (23 | ) | $ | - | $ | (7 | ) | |||||||||
Loans held for investment:
|
||||||||||||||||||||||||
C&I loans
|
25,685 | (81,267 | ) | - | (60,464 | ) | - | (84,841 | ) | |||||||||||||||
CRE construction loans
|
- | (490 | ) | - | (4,473 | ) | - | (3,237 | ) | |||||||||||||||
CRE loans
|
15,842 | (30,752 | ) | 67,901 | (47,771 | ) | 86,422 | (34,018 | ) | |||||||||||||||
Residential mortgage loans
|
91,796 | (33,210 | ) | 86,082 | (34,297 | ) | 71,960 | (28,081 | ) | |||||||||||||||
Consumer loans
|
- | (20 | ) | - | (56 | ) | - | (88 | ) | |||||||||||||||
Total
|
$ | 133,323 | $ | (145,744 | ) | $ | 153,983 | $ | (147,084 | ) | $ | 158,382 | $ | (150,272 | ) |
Delinquent residential and
consumer loans (amount)
|
Delinquent residential and consumer loans
as a percentage of outstanding loan balances
|
|||||||||||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||||||||||
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
30-89 days
|
$ | 12,807 | $ | 24,441 | $ | 19,767 | 0.73 | % | 1.20 | % | 0.82 | % | ||||||||||||
90 days or more
|
61,984 | 65,897 | 67,640 | 3.51 | % | 3.24 | % | 2.80 | % |
September 30, 2011
|
September 30, 2010
(1)
|
|||||||
($ outstanding as a % of RJ Bank total assets)
|
||||||||
3.3 | % |
CA
(2)
|
4.8 | % |
CA
(2)
|
|||
2.6 | % |
FL
|
3.2 | % |
FL
|
|||
1.9 | % |
NY
|
3.2 | % |
NY
|
|||
1.1 | % |
NJ
|
1.5 | % |
NJ
|
|||
0.9 | % |
VA
|
1.2 | % |
VA
|
(1)
|
Concentration ratios are presented as a percentage of adjusted RJ Bank total assets of $7.3 billion. Adjusted RJ Bank total assets (non-GAAP) at September 30, 2010 exclude $3.5 billion in qualifying assets funded by approximately $700 million of additional RJBDP deposits, approximately $400 million in deposits from affiliates and a $2.4 billion overnight FHLB advance. The deposits from affiliates were withdrawn and the FHLB advance was repaid on October 1, 2010. The additional RJBDP deposits were redirected to other RJBDP participating banks during early October 2010. The non-GAAP financial measure provided loan portfolio concentration ratios which are more representative of RJ Bank’s ongoing asset levels. Had a GAAP measure of total assets been used in the calculation of these ratios, the resulting percentages for CA, FL, NY, NJ and VA as of September 30, 2010 would have been 3.3%, 2.2%, 2.1%, 1.0% and 0.8%, respectively, and would have understated the actual concentrations used in RJ Bank’s credit risk analysis.
|
(2)
|
This concentration ratio for the state of California excludes 1.9% and 2.3% at September 30, 2011 and 2010, respectively, for loans purchased from a large investment grade institution that have full repurchase recourse for any delinquent loans.
|
September 30, 2011
|
||||
(in thousands)
|
||||
One year or less
|
$ | 384,572 | ||
Over one year through two years
|
86,265 | |||
Over two years through three years
|
89,880 | |||
Over three years through four years
|
37,564 | |||
Over four years through five years
|
9,656 | |||
Over five years
|
31,929 | |||
Total outstanding residential interest only loan balance
|
$ | 639,866 |
September 30, 2011
|
September 30, 2010
|
||
Residential first mortgage loan weighted-average LTV/FICO
(1)
|
66%/751
|
65%/751
|
September 30, 2011
|
September 30, 2010
(1)
|
|||||||
($ outstanding as a % of RJ Bank total assets)
|
||||||||
4.2 | % |
Telecommunications
|
4.3 | % |
Consumer products and services
|
|||
3.4 | % |
Consumer products and services
|
4.1 | % |
Telecommunications
|
|||
2.9 | % |
Media communications
|
3.2 | % |
Hospitality
|
|||
2.9 | % |
Pharmaceuticals
|
2.8 | % |
Retail real estate
|
|||
2.6 | % |
Healthcare providers (non-hospital)
|
2.6 | % |
Hospitals
|
(1)
|
Concentration ratios are presented as a percentage of adjusted RJ Bank total assets of $7.3 billion. Adjusted RJ Bank total assets (non-GAAP) at September 30, 2010 exclude $3.5 billion in qualifying assets funded by approximately $700 million of additional RJBDP deposits, approximately $400 million in deposits from affiliates and a $2.4 billion overnight FHLB advance. The deposits from affiliates were withdrawn and the FHLB advance was repaid on October 1, 2010. The additional RJBDP deposits were redirected to other RJBDP participating banks during early October 2010. The non-GAAP financial measure provided loan portfolio concentration ratios which are more representative of RJ Bank’s ongoing asset levels. Had a GAAP measure of total assets been used in the calculation of these ratios, the resulting percentages for consumer products and services, telecommunications, hospitality, retail real estate, and hospitals would have been 2.9%, 2.8%, 2.2%, 1.9% and 1.7%, respectively, and would have understated the actual concentrations used in RJ Bank’s credit risk analysis.
|
September 30,
|
||||||||
2011
|
2010
|
|||||||
($ in thousands)
|
||||||||
Assets:
|
||||||||
Cash and cash equivalents
|
$ | 2,439,695 | $ | 2,943,239 | ||||
Assets segregated pursuant to regulations and other segregated assets
|
3,548,683 | 3,430,715 | ||||||
Securities purchased under agreements to resell and other collateralized financings
|
398,247 | 344,652 | ||||||
Financial instruments, at fair value:
|
||||||||
Trading instruments
|
492,771 | 591,447 | ||||||
Available for sale securities
|
520,665 | 424,461 | ||||||
Private equity and other investments
|
294,356 | 321,079 | ||||||
Receivables:
|
||||||||
Brokerage clients, net
|
1,716,828 | 1,675,535 | ||||||
Stock borrowed
|
225,561 | 262,888 | ||||||
Bank loans, net
|
6,547,914 | 6,094,929 | ||||||
Brokers-dealers and clearing organizations
|
96,096 | 143,994 | ||||||
Other
|
536,364 | 442,856 | ||||||
Deposits with clearing organizations
|
91,482 | 76,488 | ||||||
Prepaid expenses and other assets
|
364,264 | 451,357 | ||||||
Investments in real estate partnerships held by consolidated variable interest entities
|
320,384 | 280,890 | ||||||
Property and equipment, net
|
169,850 | 170,768 | ||||||
Deferred income taxes, net
|
171,911 | 165,208 | ||||||
Goodwill
|
71,924 | 62,575 | ||||||
Total assets
|
$ | 18,006,995 | $ | 17,883,081 | ||||
Liabilities and equity:
|
||||||||
Trading instruments sold but not yet purchased, at fair value
|
$ | 76,150 | $ | 131,038 | ||||
Securities sold under agreements to repurchase
|
188,745 | 233,346 | ||||||
Payables:
|
||||||||
Brokerage clients
|
4,690,414 | 3,308,115 | ||||||
Stock loaned
|
814,589 | 698,668 | ||||||
Bank deposits
|
7,739,322 | 7,079,718 | ||||||
Brokers-dealers and clearing organizations
|
111,408 | 137,041 | ||||||
Trade and other
|
309,723 | 290,268 | ||||||
Other borrowings
|
- | 2,557,000 | ||||||
Accrued compensation, commissions and benefits
|
452,849 | 418,591 | ||||||
Loans payable of consolidated variable interest entities
|
99,982 | 76,464 | ||||||
Corporate debt
|
611,968 | 355,964 | ||||||
Total liabilities
|
15,095,150 | 15,286,213 | ||||||
Commitments and contingencies (see Note 17)
|
||||||||
Equity
|
||||||||
Preferred stock; $.10 par value; authorized 10,000,000 shares; issued and outstanding -0- shares
|
- | - | ||||||
Common stock; $.01 par value; authorized 350,000,000 shares; issued 130,670,086 at September 30, 2011 and 128,620,429 at September 30, 2010
|
1,271 | 1,244 | ||||||
Shares exchangeable into common stock; -0- at September 30, 2011 and 243,048 at September 30, 2010
|
- | 3,119 | ||||||
Additional paid-in capital
|
565,135 | 476,359 | ||||||
Retained earnings
|
2,125,818 | 1,909,865 | ||||||
Treasury stock, at cost; 4,263,029 common shares at September 30, 2011 and 3,918,492 common shares at September 30, 2010
|
(95,000 | ) | (81,574 | ) | ||||
Accumulated other comprehensive income
|
(9,605 | ) | (6,197 | ) | ||||
Total equity attributable to Raymond James Financial, Inc.
|
2,587,619 | 2,302,816 | ||||||
Noncontrolling interests
|
324,226 | 294,052 | ||||||
Total equity
|
2,911,845 | 2,596,868 | ||||||
Total liabilities and equity
|
$ | 18,006,995 | $ | 17,883,081 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands, except per share amounts)
|
||||||||||||
Revenues:
|
||||||||||||
Securities commissions and fees
|
$ | 2,190,436 | $ | 1,950,909 | $ | 1,634,285 | ||||||
Investment banking
|
251,183 | 164,957 | 95,124 | |||||||||
Investment advisory fees
|
216,750 | 173,939 | 147,798 | |||||||||
Interest
|
392,318 | 370,892 | 443,584 | |||||||||
Account and service fees
|
286,523 | 251,877 | 206,123 | |||||||||
Net trading profits
|
27,506 | 38,256 | 48,004 | |||||||||
Other
|
35,170 | 28,686 | 27,601 | |||||||||
Total revenues
|
3,399,886 | 2,979,516 | 2,602,519 | |||||||||
Interest expense
|
65,830 | 62,851 | 56,953 | |||||||||
Net revenues
|
3,334,056 | 2,916,665 | 2,545,566 | |||||||||
Non-interest expenses:
|
||||||||||||
Compensation, commissions and benefits
|
2,270,735 | 1,993,561 | 1,673,114 | |||||||||
Communications and information processing
|
137,605 | 121,957 | 121,646 | |||||||||
Occupancy and equipment costs
|
108,600 | 104,945 | 104,185 | |||||||||
Clearance and floor brokerage
|
38,461 | 35,123 | 33,258 | |||||||||
Business development
|
94,875 | 80,213 | 78,627 | |||||||||
Investment sub-advisory fees
|
30,100 | 26,700 | 23,639 | |||||||||
Bank loan loss provision
|
33,655 | 80,413 | 169,341 | |||||||||
Loss on auction rate securities repurchased
|
41,391 | - | - | |||||||||
Other
|
127,889 | 117,609 | 105,355 | |||||||||
Total non-interest expenses
|
2,883,311 | 2,560,521 | 2,309,165 | |||||||||
Income including noncontrolling interests and before provision for income taxes
|
450,745 | 356,144 | 236,401 | |||||||||
Provision for income taxes
|
182,894 | 133,625 | 96,024 | |||||||||
Net income including noncontrolling interests
|
267,851 | 222,519 | 140,377 | |||||||||
Net loss attributable to noncontrolling interests
|
(10,502 | ) | (5,764 | ) | (12,373 | ) | ||||||
Net income attributable to Raymond James Financial, Inc.
|
$ | 278,353 | $ | 228,283 | $ | 152,750 | ||||||
Net income per common share – basic
|
$ | 2.20 | $ | 1.83 | $ | 1.25 | ||||||
Net Income per common share – diluted
|
$ | 2.19 | $ | 1.83 | $ | 1.25 | ||||||
Weighted-average common shares outstanding – basic
|
122,448 | 119,335 | 117,188 | |||||||||
Weighted-average common and common equivalent shares outstanding – diluted
|
122,836 | 119,592 | 117,288 | |||||||||
Net income attributable to Raymond James Financial, Inc.
|
$ | 278,353 | $ | 228,283 | $ | 152,750 | ||||||
Other comprehensive income, net of tax:
(1)
|
||||||||||||
Change in unrealized gain (loss) on available for sale securities and non-credit portion of other-than-temporary impairment losses
|
2,621 | 30,147 | (5,848 | ) | ||||||||
Change in currency translations
|
(6,029 | ) | 5,459 | (1,979 | ) | |||||||
Total comprehensive income
|
$ | 274,945 | $ | 263,889 | $ | 144,923 | ||||||
Other-than-temporary impairment:
|
||||||||||||
Total other-than-temporary impairment losses
|
$ | (11,977 | ) | $ | (27,709 | ) | $ | (33,346 | ) | |||
Portion of losses recognized in other comprehensive income (before taxes)
|
1,743 | 15,679 | 20,453 | |||||||||
Net impairment losses recognized in other revenue
|
$ | (10,234 | ) | $ | (12,030 | ) | $ | (12,893 | ) |
(1)
|
The components of other comprehensive income, net of tax, are attributable to Raymond James Financial, Inc. None of the components of other comprehensive income are attributable to noncontrolling interests.
|
2011
|
2010
|
2009
|
||||||||||
Common stock, par value $.01 per share:
|
||||||||||||
Balance, beginning of year
|
$ | 1,244 | $ | 1,227 | $ | 1,202 | ||||||
Issued
(1)
|
27 | 17 | 25 | |||||||||
Balance, end of year
|
1,271 | 1,244 | 1,227 | |||||||||
Shares exchangeable into common stock:
|
||||||||||||
Balance, beginning of year
|
3,119 | 3,198 | 3,504 | |||||||||
Exchanged
(1)
|
(3,119 | ) | (79 | ) | (306 | ) | ||||||
Balance, end of year
|
- | 3,119 | 3,198 | |||||||||
Additional paid-in capital:
|
||||||||||||
Balance, beginning of year
|
476,359 | 416,662 | 355,274 | |||||||||
Employee stock purchases
|
10,699 | 9,775 | 8,938 | |||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
32,675 | 5,220 | 18,661 | |||||||||
Restricted stock, stock option and restricted stock unit expense
|
38,551 | 39,860 | 30,767 | |||||||||
Excess tax (deficiency) benefit from share-based payments
|
(374 | ) | 2,280 | 3,210 | ||||||||
Issuance of stock as consideration for acquisition
|
4,011 | - | - | |||||||||
Other
(1)
|
3,214 | 2,562 | (188 | ) | ||||||||
Balance, end of year
|
565,135 | 476,359 | 416,662 | |||||||||
Retained earnings:
|
||||||||||||
Balance, beginning of year
|
1,909,865 | 1,737,591 | 1,639,662 | |||||||||
Net income attributable to Raymond James Financial, Inc.
|
278,353 | 228,283 | 152,750 | |||||||||
Cash dividends declared
|
(65,808 | ) | (56,009 | ) | (54,140 | ) | ||||||
Deconsolidation of previously consolidated low income housing tax credit funds
|
3,314 | - | - | |||||||||
Other
|
94 | - | (681 | ) | ||||||||
Balance, end of year
|
2,125,818 | 1,909,865 | 1,737,591 | |||||||||
Treasury stock:
|
||||||||||||
Balance, beginning of year
|
(81,574 | ) | (84,412 | ) | (81,761 | ) | ||||||
Purchases/Surrenders
|
(22,710 | ) | (3,537 | ) | (6,746 | ) | ||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
5,220 | 6,375 | 1,137 | |||||||||
Joint venture share exchange
|
- | - | 2,958 | |||||||||
Issuance of stock as consideration for acquisition
|
4,291 | - | - | |||||||||
Other
|
(227 | ) | - | - | ||||||||
Balance, end of year
|
(95,000 | ) | (81,574 | ) | (84,412 | ) | ||||||
Accumulated other comprehensive income:
(2)
|
||||||||||||
Balance, beginning of year
|
(6,197 | ) | (41,803 | ) | (33,976 | ) | ||||||
Net unrealized gain (loss) on available for sale securities and non-credit portion of other-than-temporary impairment losses
(3)
|
2,621 | 30,147 | (5,848 | ) | ||||||||
Net change in currency transactions
|
(6,029 | ) | 5,459 | (1,979 | ) | |||||||
Balance, end of year
|
(9,605 | ) | (6,197 | ) | (41,803 | ) | ||||||
Total equity attributable to Raymond James Financial, Inc.
|
$ | 2,587,619 | $ | 2,302,816 | $ | 2,032,463 | ||||||
Noncontrolling interests:
|
||||||||||||
Balance, beginning of year
|
$ | 294,052 | $ | 200,676 | $ | 237,322 | ||||||
Net loss attributable to noncontrolling interests
|
(10,502 | ) | (5,764 | ) | (12,373 | ) | ||||||
Capital contributions
|
33,633 | 100,863 | 22,967 | |||||||||
Distributions
|
(9,971 | ) | (3,276 | ) | (8,536 | ) | ||||||
Deconsolidation of certain internally sponsored private equity limited partnerships
|
- | - | (34,617 | ) | ||||||||
Deconsolidation of previously consolidated low income housing tax credit funds
|
(6,789 | ) | - | - | ||||||||
Consolidation of low income housing tax credit funds not previously consolidated
|
14,635 | - | - | |||||||||
Other
|
9,168 | 1,553 | (4,087 | ) | ||||||||
Balance, end of year
|
324,226 | 294,052 | 200,676 | |||||||||
Total Equity
|
$ | 2,911,845 | $ | 2,596,868 | $ | 2,233,139 |
(1)
|
During the year ended September 30, 2011, 243,000 exchangeable shares were exchanged for common stock on a one-for-one basis.
|
(2)
|
The components of other comprehensive income are attributable to Raymond James Financial, Inc. None of the components of other comprehensive income are attributable to noncontrolling interests.
|
(3)
|
Net of tax.
|
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income attributable to Raymond James Financial, Inc.
|
$ | 278,353 | $ | 228,283 | $ | 152,750 | ||||||
Net loss attributable to noncontrolling interests
|
(10,502 | ) | (5,764 | ) | (12,373 | ) | ||||||
Net income including noncontrolling interests
|
267,851 | 222,519 | 140,377 | |||||||||
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
40,337 | 39,527 | 34,563 | |||||||||
Deferred income taxes
|
(6,008 | ) | (25,829 | ) | (44,671 | ) | ||||||
Premium and discount amortization on available for sale securities and unrealized/realized gain on other investments
|
(13,001 | ) | (14,969 | ) | (11,863 | ) | ||||||
Provisions for loan losses, legal proceedings, bad debts and other accruals
|
52,639 | 109,324 | 186,376 | |||||||||
Share-based compensation expense
|
40,978 | 41,845 | 31,746 | |||||||||
Other
|
45,951 | 9,699 | 25,018 | |||||||||
Net change in:
|
||||||||||||
Assets segregated pursuant to regulations and other segregated assets
|
(116,231 | ) | (1,120,454 | ) | 2,001,672 | |||||||
Securities purchased under agreements to resell and other collateralized financings, net of securities sold under agreements to repurchase
|
(98,196 | ) | 92,122 | (80,610 | ) | |||||||
Stock loaned, net of stock borrowed
|
153,248 | 362,504 | 52,617 | |||||||||
Brokerage client receivables and other accounts receivable, net
|
(82,163 | ) | (220,476 | ) | 335,693 | |||||||
Trading instruments, net
|
80,740 | (134,857 | ) | (111,506 | ) | |||||||
Prepaid expenses and other assets
|
(13,418 | ) | (79,969 | ) | 814 | |||||||
Brokerage client payables and other accounts payable
|
1,312,192 | (461,604 | ) | (2,091,537 | ) | |||||||
Accrued compensation, commissions and benefits
|
34,187 | 89,678 | (15,725 | ) | ||||||||
Purchase and origination of loans held for sale, net of proceeds from sale of securitizations and loans held for sale
|
(138,559 | ) | 71,827 | (75,595 | ) | |||||||
Excess tax benefits from share-based payment arrangements
|
(2,106 | ) | (2,280 | ) | (3,210 | ) | ||||||
Net cash provided by (used in) operating activities
|
1,558,441 | (1,021,393 | ) | 374,159 | ||||||||
Cash flows from investing activities:
|
||||||||||||
Additions to property and equipment
|
(37,200 | ) | (22,287 | ) | (35,539 | ) | ||||||
(Increase) decrease in loans, net
|
(336,314 | ) | 369,370 | 357,054 | ||||||||
Redemptions (purchases) of Federal Home Loan Bank stock, net
|
61,508 | (67,275 | ) | 40,257 | ||||||||
Sales (purchases) of private equity and other investments, net
|
26,210 | (23,437 | ) | (111,573 | ) | |||||||
Decrease (increase) in securities purchased under agreements to resell
|
- | 2,000,000 | (1,295,000 | ) | ||||||||
Acquisition of controlling interest in subsidiary
|
(6,354 | ) | - | - | ||||||||
Purchases of available for sale securities
|
(238,768 | ) | (29,977 | ) | (102,516 | ) | ||||||
Available for sale securities maturations, repayments and redemptions
|
130,063 | 149,961 | 149,829 | |||||||||
Proceeds from sales of available for sale securities
|
13,761 | - | - | |||||||||
Investments in real estate partnerships held by variable interest entities, net of other investing activity
|
(13,049 | ) | (10,134 | ) | (28,596 | ) | ||||||
Net cash (used in) provided by investing activities
|
(400,143 | ) | 2,366,221 | (1,026,084 | ) | |||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from borrowed funds, net
|
249,498 | 1,607,000 | 327,043 | |||||||||
Repayments of borrowings, net
|
(2,561,324 | ) | (33,075 | ) | (1,203,140 | ) | ||||||
Repayments of borrowings by consolidated variable interest entities which are real estate partnerships
|
(23,679 | ) | (16,995 | ) | (18,220 | ) | ||||||
Proceeds from capital contributed to and borrowings of consolidated variable interest entities which are real estate partnerships
|
33,229 | 111,910 | 33,818 | |||||||||
Exercise of stock options and employee stock purchases
|
47,383 | 19,917 | 25,022 | |||||||||
Increase (decrease) in bank deposits
|
659,604 | (2,343,669 | ) | 648,930 | ||||||||
Purchase of treasury stock
|
(23,111 | ) | (3,537 | ) | (4,339 | ) | ||||||
Dividends on common stock
|
(63,090 | ) | (56,009 | ) | (54,140 | ) | ||||||
Excess tax benefits from share-based payment arrangements
|
2,106 | 2,280 | 3,210 | |||||||||
Net cash used in financing activities
|
(1,679,384 | ) | (712,178 | ) | (241,816 | ) | ||||||
Currency adjustment:
|
||||||||||||
Effect of exchange rate changes on cash
|
(824 | ) | 1,116 | (1,450 | ) | |||||||
Net (decrease) increase in cash and cash equivalents
|
(521,910 | ) | 633,766 | (895,191 | ) | |||||||
Increase (decrease) in cash resulting from the consolidation/deconsolidation of certain entities
|
18,366 | 3,388 | (6,217 | ) | ||||||||
Cash and cash equivalents at beginning of year
|
2,943,239 | 2,306,085 | 3,207,493 | |||||||||
Cash and cash equivalents at end of year
|
$ | 2,439,695 | $ | 2,943,239 | $ | 2,306,085 | ||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid for interest
|
$ | 55,332 | $ | 59,584 | $ | 58,774 | ||||||
Cash paid for income taxes
|
$ | 194,233 | $ | 161,345 | $ | 137,618 | ||||||
Non-cash transfers of loans to other real estate owned
|
$ | 14,198 | $ | 41,233 | $ | 14,819 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash in banks
|
$ | 2,438,249 | $ | 2,939,963 | (1) | |||
Money market investments
|
1,446 | 3,276 | ||||||
Total cash and cash equivalents
(2)
|
2,439,695 | 2,943,239 | ||||||
Cash and securities segregated pursuant to federal regulations and other segregated assets
(3)
|
3,548,683 | 3,430,715 | (4) | |||||
Deposits with clearing organizations
(5)
|
91,482 | 76,488 | ||||||
$ | 6,079,860 | $ | 6,450,442 |
(1)
|
Cash in banks at September 30, 2010 includes $1.8 billion resulting from RJ Bank’s September 30, 2010 point-in-time requirement to qualify as a thrift institution. See Note 22 for discussion of the point-in-time requirement.
|
(2)
|
The total amount presented includes $471 million and $287 million of cash and cash equivalents which are either on deposit at RJ Bank or are otherwise invested by one of our subsidiaries, on behalf of RJF as of September 30, 2011 and September 30, 2010, respectively.
|
(3)
|
Consists primarily of cash or qualified securities maintained in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934. RJ&A, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust.
|
(4)
|
Other segregated assets at September 30, 2010 include $1.3 billion held as collateral by the FHLB securing an overnight advance which was related to the point-in-time regulatory balance sheet composition requirements mentioned in item (1) above. On October 1, 2010, the advance was repaid.
|
(5)
|
Consists of deposits of cash and cash equivalents or other short-term securities held by other clearing organizations or exchanges.
|
September 30, 2011
|
Quoted prices
in active
markets for
identical
assets
(Level 1)
(1)
|
Significant
other
observable
inputs
(Level 2)
(1)
|
Significant
unobservable
inputs
(Level 3)
|
Netting
adjustments
(2)
|
Balance as of
September 30, 2011
|
|||||||||||||||
(in thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Trading instruments:
|
||||||||||||||||||||
Municipal and provincial obligations
|
$ | 8 | $ | 164,019 | $ | 375 | $ | - | $ | 164,402 | ||||||||||
Corporate obligations
|
4,137 | 23,470 | - | - | 27,607 | |||||||||||||||
Government and agency obligations
|
22,620 | 13,486 | - | - | 36,106 | |||||||||||||||
Agency MBS and CMOs
|
31 | 147,726 | - | - | 147,757 | |||||||||||||||
Non-agency CMOs and ABS
|
- | 49,069 | 50 | - | 49,119 | |||||||||||||||
Total debt securities
|
26,796 | 397,770 | 425 | - | 424,991 | |||||||||||||||
Derivative contracts
|
- | 126,867 | - | (88,563 | ) | 38,304 | ||||||||||||||
Equity securities
|
17,908 | 3,274 | 15 | - | 21,197 | |||||||||||||||
Other securities
|
816 | 7,463 | - | - | 8,279 | |||||||||||||||
Total trading instruments
|
45,520 | 535,374 | 440 | (88,563 | ) | 492,771 | ||||||||||||||
Available for sale securities:
|
||||||||||||||||||||
Agency MBS and CMOs
|
- | 178,732 | - | - | 178,732 | |||||||||||||||
Non-agency CMOs
|
- | 145,024 | 851 | - | 145,875 | |||||||||||||||
Other securities
|
10 | - | - | - | 10 | |||||||||||||||
ARS:
|
||||||||||||||||||||
Municipals
|
- | - | 79,524 | (4) | - | 79,524 | ||||||||||||||
Preferred securities
|
- | - | 116,524 | - | 116,524 | |||||||||||||||
Total available for sale securities
|
10 | 323,756 | 196,899 | - | 520,665 | |||||||||||||||
Private equity and other investments:
|
||||||||||||||||||||
Private equity investments
|
- | - | 168,785 | (3) | - | 168,785 | ||||||||||||||
Other investments
|
123,421 | 63 | 2,087 | - | 125,571 | |||||||||||||||
Total private equity and other investments
|
123,421 | 63 | 170,872 | - | 294,356 | |||||||||||||||
Other assets
|
- | 2,696 | - | - | 2,696 | |||||||||||||||
Total
|
$ | 168,951 | $ | 861,889 | $ | 368,211 | $ | (88,563 | ) | $ | 1,310,488 | |||||||||
Liabilities:
|
||||||||||||||||||||
Trading instruments sold but not yet purchased:
|
||||||||||||||||||||
Municipal and provincial obligations
|
$ | - | $ | 607 | $ | - | $ | - | $ | 607 | ||||||||||
Corporate obligations
|
- | 5,625 | - | - | 5,625 | |||||||||||||||
Government obligations
|
56,472 | - | - | - | 56,472 | |||||||||||||||
Agency MBS and CMOs
|
159 | - | - | - | 159 | |||||||||||||||
Total debt securities
|
56,631 | 6,232 | - | - | 62,863 | |||||||||||||||
Derivative contracts
|
- | 112,457 | - | (105,869 | ) | 6,588 | ||||||||||||||
Equity securities
|
6,488 | 211 | - | - | 6,699 | |||||||||||||||
Other securities
|
- | - | - | - | - | |||||||||||||||
Total trading instruments sold but not yet purchased
|
63,119 | 118,900 | - | (105,869 | ) | 76,150 | ||||||||||||||
Other liabilities
|
- | 20 | 40 | - | 60 | |||||||||||||||
Total
|
$ | 63,119 | $ | 118,920 | $ | 40 | $ | (105,869 | ) | $ | 76,210 |
(1)
|
We had no significant transfers of financial instruments between Level 1 and Level 2 during the fiscal year ended September 30, 2011. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
(2)
|
We have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists.
|
(3)
|
Includes $87.9 million in private equity investments of which the weighted-average portion we own is approximately 20%. Effectively the economics associated with the portion of this investment we do not own becomes a component of noncontrolling interests on our Consolidated Statements of Financial Condition, and amounted to approximately $70 million of that total as of September 30, 2011.
|
(4)
|
Includes $53.2 million of Jefferson County, Alabama Limited Obligation School Warrants ARS and $19.2 million of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS. On November 9, 2011, Jefferson County, Alabama filed a voluntary petition for relief under Chapter 9 of the U.S. Bankruptcy Code in the U.S. District Court for the Northern District of Alabama. To date, the impact of this event on the fair value of these ARS has not been material, however the future impact is unknown.
|
September 30, 2010
|
Quoted prices
in active
markets for
identical assets
(Level 1)
(1)
|
Significant
other
observable
inputs
(Level 2)
(1)
|
Significant
unobservable
inputs
(Level 3)
|
Netting
adjustments
(2)
|
Balance as of
September 30, 2010
|
|||||||||||||||
(in thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Trading instruments:
|
||||||||||||||||||||
Municipal and provincial obligations
|
$ | 7 | $ | 162,071 | $ | 6,275 | $ | - | $ | 168,353 | ||||||||||
Corporate obligations
|
21,485 | 16,986 | - | - | 38,471 | |||||||||||||||
Government and agency obligations
|
27,374 | 9,520 | - | - | 36,894 | |||||||||||||||
Agency MBS and CMOs
|
303 | 278,275 | - | - | 278,578 | |||||||||||||||
Non-agency CMOs and ABS
|
- | 4,367 | 3,930 | - | 8,297 | |||||||||||||||
Total debt securities
|
49,169 | 471,219 | 10,205 | - | 530,593 | |||||||||||||||
Derivative contracts
|
- | 102,490 | - | (76,123 | ) | 26,367 | ||||||||||||||
Equity securities
|
28,506 | 113 | 3,025 | - | 31,644 | |||||||||||||||
Other securities
|
1,250 | 1,593 | - | - | 2,843 | |||||||||||||||
Total trading instruments
|
78,925 | 575,415 | 13,230 | (76,123 | ) | 591,447 | ||||||||||||||
Available for sale securities:
|
||||||||||||||||||||
Agency MBS and CMOs
|
- | 217,879 | - | - | 217,879 | |||||||||||||||
Non-agency CMOs
|
- | 200,559 | 1,011 | - | 201,570 | |||||||||||||||
Other securities
|
9 | 5,003 | - | - | 5,012 | |||||||||||||||
Total available for sale securities
|
9 | 423,441 | 1,011 | - | 424,461 | |||||||||||||||
Private equity and other investments:
|
||||||||||||||||||||
Private equity investments
|
- | - | 161,230 | (3) | - | 161,230 | ||||||||||||||
Other investments
|
158,653 | 1,151 | 45 | - | 159,849 | |||||||||||||||
Total private equity and other investments
|
158,653 | 1,151 | 161,275 | - | 321,079 | |||||||||||||||
Other assets
|
- | 25 | - | - | 25 | |||||||||||||||
Total
|
$ | 237,587 | $ | 1,000,032 | $ | 175,516 | $ | (76,123 | ) | $ | 1,337,012 | |||||||||
Liabilities:
|
||||||||||||||||||||
Trading instruments sold but not yet purchased:
|
||||||||||||||||||||
Municipal and provincial obligations
|
$ | - | $ | 296 | $ | - | $ | - | $ | 296 | ||||||||||
Corporate obligations
|
17 | 676 | - | - | 693 | |||||||||||||||
Government obligations
|
99,631 | - | - | - | 99,631 | |||||||||||||||
Agency MBS and CMOs
|
105 | - | - | - | 105 | |||||||||||||||
Total debt securities
|
99,753 | 972 | - | - | 100,725 | |||||||||||||||
Derivative contracts
|
- | 86,039 | - | (84,390 | ) | 1,649 | ||||||||||||||
Equity securities
|
15,890 | 12,774 | - | - | 28,664 | |||||||||||||||
Total trading instruments sold but not yet purchased
|
115,643 | 99,785 | - | (84,390 | ) | 131,038 | ||||||||||||||
Other liabilities
|
- | 105 | 46 | - | 151 | |||||||||||||||
Total
|
$ | 115,643 | $ | 99,890 | $ | 46 | $ | (84,390 | ) | $ | 131,189 |
(1)
|
We had no significant transfers of financial instruments between Level 1 and Level 2 during the year ended September 30, 2010. Our policy is to use the end of each respective quarterly reporting period to determine when transfers of financial instruments between levels are recognized.
|
(2)
|
We have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists.
|
(3)
|
Includes $86.3 million in private equity investments of which the weighted-average portion we own is approximately 20%. Effectively the economics associated with the portion of this investment we do not own becomes a component of noncontrolling interests on our Consolidated Statements of Financial Condition, and amounted to approximately $69.1 million of that total as of September 30, 2010.
|
Year ended September 30, 2011
Level 3 assets at fair value
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Financial assets
|
Financial
liabilities
|
|||||||||||||||||||||||||||||||||||
Trading Instruments
|
Available for sale securities
|
Private equity and
other investments
|
Payables-trade and other
|
|||||||||||||||||||||||||||||||||
Municipal &
provincial
obligations
|
Non-agency
CMOs & ABS
|
Equity
securities
|
Non-agency
CMOs
|
ARS - municipals
|
ARS -
preferred securities
|
Private
equity
investments
|
Other
investments
|
Other
liabilities
|
||||||||||||||||||||||||||||
Fair value
September 30, 2010
|
$ | 6,275 | $ | 3,930 | $ | 3,025 | $ | 1,011 | $ | - | $ | - | $ | 161,230 | $ | 45 | $ | (46 | ) | |||||||||||||||||
Realized/unrealized gains (losses):
|
||||||||||||||||||||||||||||||||||||
Included in earnings
|
(397 | ) | 1,318 | (176 | ) | 121 | - | - | 10,683 | (1) | (160 | ) | 6 | |||||||||||||||||||||||
Included in other comprehensive income
|
- | - | - | 155 | - | - | - | - | - | |||||||||||||||||||||||||||
Purchases and contributions
|
1,050 | 12 | 688 | - | 73,213 | 131,255 | 14,027 | 1,932 | - | |||||||||||||||||||||||||||
Sales
|
(305 | ) | (5,210 | ) | (1,225 | ) | (436 | ) | - | - | - | (191 | ) | - | ||||||||||||||||||||||
Redemptions by issuer
|
- | - | (1,125 | ) | - | - | (15,925 | ) | - | - | - | |||||||||||||||||||||||||
Distributions
|
- | - | - | - | - | - | (16,694 | ) | - | - | ||||||||||||||||||||||||||
Transfers:
|
||||||||||||||||||||||||||||||||||||
Into Level 3
(2)
|
- | - | - | - | 6,311 | 1,194 | - | 461 | - | |||||||||||||||||||||||||||
Out of Level 3
(2)
|
(6,248 | ) | - | (1,172 | ) | - | - | - | (461 | ) | - | - | ||||||||||||||||||||||||
Fair value
September 30, 2011
|
$ | 375 | $ | 50 | $ | 15 | $ | 851 | $ | 79,524 | $ | 116,524 | $ | 168,785 | $ | 2,087 | $ | (40 | ) | |||||||||||||||||
Change in unrealized gains (losses) related to financial instruments held at September 30, 2011
|
$ | 203 | $ | (99 | ) | $ | (23 | ) | $ | (81 | ) | $ | - | $ | - | $ | (8 | ) | $ | (143 | ) | $ | - |
(1)
|
Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of $6 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $4.7 million.
|
(2)
|
During fiscal year 2011, ARS positions we held in trading instruments which were repurchased from clients in individual settlements prior to the ARS settlement (refer to Note 17 for discussion of the ARS settlement) were transferred into available for sale securities. In addition, certain investments held by our Canadian subsidiary were reclassified from private equity investments to other investments. In all periods presented, these positions were considered Level 3 assets in the fair value hierarchy.
|
Year ended September 30, 2010
Level 3 assets at fair value
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Financial assets
|
Financial
liabilities
|
|||||||||||||||||||||||||||||||||||
Trading Instruments
|
Available for sale securities
|
Private equity and
other investments
|
Payables-trade and other
|
|||||||||||||||||||||||||||||||||
Municipal &
provincial
obligations
|
Non-agency
CMOs & ABS
|
Derivative
contracts
|
Equity
securities
|
Other
securities
|
Non-agency
CMOs
|
Private
equity
investments
|
Other
investments
|
Other
liabilities
|
||||||||||||||||||||||||||||
Fair value
September 30, 2009
|
$ | 5,316 | $ | 10,915 | $ | 222 | $ | - | $ | 919 | $ | 2,596 | $ | 142,671 | $ | 227 | $ | (59 | ) | |||||||||||||||||
Realized/unrealized gains (losses):
|
||||||||||||||||||||||||||||||||||||
Included in earnings
|
1,929 | (547 | ) | (222 | ) | (44 | ) | 720 | (2,844 | ) | 13,652 | (1) | 243 | 13 | ||||||||||||||||||||||
Included in other comprehensive income
|
- | - | - | - | - | 1,652 | - | - | - | |||||||||||||||||||||||||||
Purchases, issuances & settlements, net
|
(6,545 | ) | (6,438 | ) | - | 2,669 | 7 | (393 | ) | 4,907 | (425 | ) | - | |||||||||||||||||||||||
Transfers:
|
||||||||||||||||||||||||||||||||||||
Into Level 3
|
5,575 | - | - | 400 | - | - | - | - | - | |||||||||||||||||||||||||||
Out of Level 3
|
- | - | - | - | (1,646 | ) | - | - | - | - | ||||||||||||||||||||||||||
Fair value
September 30, 2010
|
$ | 6,275 | $ | 3,930 | $ | - | $ | 3,025 | $ | - | $ | 1,011 | $ | 161,230 | $ | 45 | $ | (46 | ) | |||||||||||||||||
Change in unrealized gains (losses) related to financial instruments held at September 30, 2010
|
$ | - | $ | 174 | $ | - | $ | 5 | $ | 720 | $ | (2,844 | ) | $ | 13,652 | $ | (5 | ) | $ | - |
(1)
|
Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of $3.5 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $10.2 million.
|
For the year ended September 30, 2011
|
Net trading profits
|
Other revenues
|
||||||
(in thousands)
|
||||||||
Total gains included in revenues
|
$ | 745 | $ | 10,650 | ||||
Change in unrealized gains (losses) relating to assets still held at reporting date
|
81 | (232 | ) |
For the year ended September 30, 2010
|
Net trading profits
|
Other revenues
|
||||||
(in thousands)
|
||||||||
Total gains included in revenues
|
$ | 2,056 | $ | 10,844 | ||||
Change in unrealized gains relating to assets still held at reporting date
|
897 | 10,805 |
Fair value measurements
|
||||||||||||||||
Quoted prices in active
markets for identical
assets (Level 1)
|
Significant other
observable
inputs (Level 2)
|
Significant
unobservable
inputs (Level 3)
|
Total
|
|||||||||||||
September 30, 2011:
|
(in thousands)
|
|||||||||||||||
Assets at fair value on a nonrecurring basis:
|
||||||||||||||||
Bank loans, net
(1)
|
$ | - | $ | 39,621 | $ | 111,941 | (3) | $ | 151,562 | |||||||
OREO
(2)
|
- | 11,278 | - | 11,278 | ||||||||||||
September 30, 2010:
|
||||||||||||||||
Assets at fair value on a nonrecurring basis:
|
||||||||||||||||
Bank loans, net
(1)
|
$ | - | $ | 1,901 | $ | 127,035 | (3) | $ | 128,936 | |||||||
OREO
(2)
|
- | 19,431 | - | 19,431 |
(1)
|
Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost.
|
(2)
|
Represents the fair value of foreclosed properties which were measured at a fair value subsequent to their initial classification as OREO. The recorded value in the Consolidated Statements of Financial Condition is net of the estimated selling costs.
|
(3)
|
At September 30, 2011 and 2010, the Level 3 assets, include residential first mortgage nonaccrual loans for which a charge-off had been recorded. See Note 7 for further information.
|
September 30, 2011
|
September 30, 2010
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
amount
|
fair value
|
amount
|
fair value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||
Bank loans, net
|
$ | 6,547,914 | $ | 6,596,439 | $ | 6,094,929 | $ | 6,099,106 | ||||||||
Financial liabilities:
|
||||||||||||||||
Bank deposits
|
7,739,322 | 7,745,607 | 7,079,718 | 7,088,297 | ||||||||||||
Other borrowings
|
- | - | 2,557,000 | 2,557,613 | ||||||||||||
Corporate debt
|
611,968 | 675,509 | 355,964 | 421,132 |
September 30, 2011
|
September 30, 2010
|
|||||||||||||||
Trading
instruments
|
Instruments
sold but not
yet purchased
|
Trading
instruments
|
Instruments
sold but not
yet purchased
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Municipal and provincial obligations
|
$ | 164,402 | $ | 607 | $ | 168,353 | $ | 296 | ||||||||
Corporate obligations
|
27,607 | 5,625 | 38,471 | 693 | ||||||||||||
Government and agency obligations
|
36,106 | 56,472 | 36,894 | 99,631 | ||||||||||||
Agency MBS and CMOs
|
147,757 | 159 | 278,578 | 105 | ||||||||||||
Non-agency CMOs and ABS
|
49,119 | - | 8,297 | - | ||||||||||||
Total debt securities
|
424,991 | 62,863 | 530,593 | 100,725 | ||||||||||||
Derivative contracts
|
38,304 | 6,588 | 26,367 | 1,649 | ||||||||||||
Equity securities
|
21,197 | 6,699 | 31,644 | 28,664 | ||||||||||||
Other securities
|
8,279 | - | 2,843 | - | ||||||||||||
Total
|
$ | 492,771 | $ | 76,150 | $ | 591,447 | $ | 131,038 |
September 30, 2011
|
||||||||||||||||
Cost basis
|
Gross
unrealized gains
|
Gross
unrealized losses
|
Fair value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available for sale securities:
|
||||||||||||||||
Agency MBS and CMOs
|
$ | 178,120 | $ | 639 | $ | (27 | ) | $ | 178,732 | |||||||
Non-agency CMOs
(1)
|
192,956 | - | (47,081 | ) | 145,875 | |||||||||||
Total RJ Bank available for sale securities
|
371,076 | 639 | (47,108 | ) | 324,607 | |||||||||||
Auction rate securities:
|
||||||||||||||||
Municipal obligations
|
79,524 | - | - | 79,524 | ||||||||||||
Preferred securities
|
116,524 | - | - | 116,524 | ||||||||||||
Total auction rate securities
(2)
|
196,048 | - | - | 196,048 | ||||||||||||
Other securities
|
3 | 7 | - | 10 | ||||||||||||
Total available for sale securities
|
$ | 567,127 | $ | 646 | $ | (47,108 | ) | $ | 520,665 |
September 30, 2010
|
||||||||||||||||
Cost basis
|
Gross
unrealized gains
|
Gross
unrealized losses
|
Fair value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available for sale securities:
|
||||||||||||||||
Agency MBS and CMOs
|
$ | 217,516 | $ | 559 | $ | (196 | ) | $ | 217,879 | |||||||
Non-agency CMOs
(3)
|
252,522 | 16 | (50,968 | ) | 201,570 | |||||||||||
Other securities
|
5,000 | 3 | - | 5,003 | ||||||||||||
Total RJ Bank available for sale securities
|
475,038 | 578 | (51,164 | ) | 424,452 | |||||||||||
Other securities
|
3 | 6 | - | 9 | ||||||||||||
Total available for sale securities
|
$ | 475,041 | $ | 584 | $ | (51,164 | ) | $ | 424,461 |
September 30, 2009
|
||||||||||||||||
Cost basis
|
Gross
unrealized gains
|
Gross
unrealized losses
|
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Available for sale securities:
|
||||||||||||||||
Agency MBS and CMOs
|
$ | 275,995 | $ | 213 | $ | (3,316 | ) | $ | 272,892 | |||||||
Non-agency CMOs
(4)
|
325,823 | - | (94,660 | ) | 231,163 | |||||||||||
Other securities
|
5,000 | 10 | - | 5,010 | ||||||||||||
Total RJ Bank available for sale securities
|
606,818 | 223 | (97,976 | ) | 509,065 | |||||||||||
Other securities
|
3 | 5 | - | 8 | ||||||||||||
Total available for sale securities
|
$ | 606,821 | $ | 228 | $ | (97,976 | ) | $ | 509,073 |
(1)
|
As of September 30, 2011, the non-credit portion of OTTI recorded in AOCI was $37.9 million (before taxes).
|
(2)
|
During fiscal year 2011, ARS with a fair value of approximately $7.5 million which were previously held in trading instruments and arose prior to the ARS settlement (refer to Note 17 for discussion of the ARS settlement) were transferred into available for sale securities.
|
(3)
|
As of September 30, 2010, the non-credit portion of OTTI recorded in AOCI was $36.1 million (before taxes).
|
(4)
|
As of September 30, 2009, the non-credit portion of OTTI recorded in AOCI was $20.5 million (before taxes).
|
September 30, 2011
|
||||||||||||||||||||
Within one year
|
After one but
within five
years
|
After five but
within ten
years
|
After ten years
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Agency MBS & CMOs:
|
||||||||||||||||||||
Amortized cost
|
$ | - | $ | - | $ | 51,262 | $ | 126,858 | $ | 178,120 | ||||||||||
Carrying value
|
- | - | 51,418 | 127,314 | 178,732 | |||||||||||||||
Weighted-average yield
|
- | - | 0.46 | % | 0.57 | % | 0.54 | % | ||||||||||||
Non-agency CMOs:
|
||||||||||||||||||||
Amortized cost
|
$ | - | $ | - | $ | - | $ | 192,956 | $ | 192,956 | ||||||||||
Carrying value
|
- | - | - | 145,875 | 145,875 | |||||||||||||||
Weighted-average yield
|
- | - | - | 4.33 | % | 4.33 | % | |||||||||||||
Sub-total agency MBS & CMOs and non-agency CMOs:
|
||||||||||||||||||||
Amortized cost
|
$ | - | $ | - | $ | 51,262 | $ | 319,814 | $ | 371,076 | ||||||||||
Carrying value
|
- | - | 51,418 | 273,189 | 324,607 | |||||||||||||||
Weighted-average yield
|
- | - | 0.46 | % | 2.58 | % | 2.24 | % | ||||||||||||
Auction rate securities:
|
||||||||||||||||||||
Municipal obligations
|
||||||||||||||||||||
Amortized cost
|
$ | - | $ | - | $ | 553 | $ | 78,971 | $ | 79,524 | ||||||||||
Carrying value
|
- | - | 553 | 78,971 | 79,524 | |||||||||||||||
Weighted-average yield
|
- | - | 0.48 | % | 0.75 | % | 0.75 | % | ||||||||||||
Preferred securities:
|
||||||||||||||||||||
Amortized cost
|
$ | - | $ | - | $ | - | $ | 116,524 | $ | 116,524 | ||||||||||
Carrying value
|
- | - | - | 116,524 | 116,524 | |||||||||||||||
Weighted-average yield
|
- | - | - | 0.26 | % | 0.26 | % | |||||||||||||
Sub-total auction rate securities:
|
||||||||||||||||||||
Amortized cost
|
$ | - | $ | - | $ | 553 | $ | 195,495 | $ | 196,048 | ||||||||||
Carrying value
|
- | - | 553 | 195,495 | 196,048 | |||||||||||||||
Weighted-average yield
|
- | - | 0.48 | % | 0.46 | % | 0.46 | % | ||||||||||||
Other securities:
|
||||||||||||||||||||
Amortized cost
|
$ | - | $ | - | $ | - | $ | 3 | $ | 3 | ||||||||||
Carrying value
|
- | - | - | 10 | 10 | |||||||||||||||
Total available for sale securities:
|
||||||||||||||||||||
Amortized cost
|
$ | - | $ | - | $ | 51,815 | $ | 515,312 | $ | 567,127 | ||||||||||
Carrying value
|
- | - | 51,971 | 468,694 | 520,665 | |||||||||||||||
Weighted-average yield
|
- | - | 0.46 | % | 1.78 | % | 1.66 | % |
September 30, 2011
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||
fair value
|
losses
|
fair value
|
losses
|
fair value
|
losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Agency MBS and CMOs
|
$ | 23,366 | $ | (6 | ) | $ | 17,702 | $ | (21 | ) | $ | 41,068 | $ | (27 | ) | |||||||||
Non-agency CMOs
|
1,345 | (93 | ) | 144,530 | (46,988 | ) | 145,875 | (47,081 | ) | |||||||||||||||
Total impaired securities
|
$ | 24,711 | $ | (99 | ) | $ | 162,232 | $ | (47,009 | ) | $ | 186,943 | $ | (47,108 | ) |
September 30, 2010
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
Estimated
|
Unrealized
|
|||||||||||||||||||
fair value
|
losses
|
fair value
|
losses
|
fair value
|
losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Agency MBS and CMOs
|
$ | 45,026 | $ | (117 | ) | $ | 58,425 | $ | (79 | ) | $ | 103,451 | $ | (196 | ) | |||||||||
Non-agency CMOs
|
- | - | 199,877 | (50,968 | ) | 199,877 | (50,968 | ) | ||||||||||||||||
Total impaired securities
|
$ | 45,026 | $ | (117 | ) | $ | 258,302 | $ | (51,047 | ) | $ | 303,328 | $ | (51,164 | ) |
September 30, 2011
|
||
Range
|
Weighted-
average
(1)
|
|
Default rate
|
0.3% - 36.3%
|
14.4%
|
Loss severity
|
15.0% - 70.8%
|
45.2%
|
Prepayment rate
|
0% - 30.2%
|
10.4%
|
(1)
|
Represents the expected activity for the next twelve months.
|
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Amount related to credit losses on securities we held at the beginning of the period
|
$ | 18,816 | $ | 17,762 | $ | 4,869 | ||||||
Additions to the amount related to credit loss for which an OTTI was not previously recognized
|
240 | 5,166 | 11,393 | |||||||||
Decreases to the amount related to credit loss for securities sold during the period
|
(6,744 | ) | - | - | ||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized
|
9,994 | 6,864 | 1,500 | |||||||||
Decreases to the amount related to credit losses for worthless securities
|
- | (10,976 | ) | - | ||||||||
Amount related to credit losses on securities we held at the end of the period
|
$ | 22,306 | $ | 18,816 | $ | 17,762 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Brokerage client receivables
|
$ | 1,719,008 | $ | 1,677,798 | ||||
Allowance for doubtful accounts
|
(2,180 | ) | (2,263 | ) | ||||
Brokerage client receivables, net
|
$ | 1,716,828 | $ | 1,675,535 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Brokerage client payables:
|
||||||||
Interest bearing
|
$ | 4,420,283 | $ | 2,985,484 | ||||
Non-interest bearing
|
270,131 | 322,631 | ||||||
Total brokerage client payables
|
$ | 4,690,414 | $ | 3,308,115 |
2011
|
2010
|
2009
|
||||||||||||||||||||||
Balance
|
%
|
Balance
|
%
|
Balance
|
%
|
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Loans held for sale, net
(1)
|
$ | 102,236 | 2 | % | $ | 6,114 | - | $ | 40,484 | 1 | % | |||||||||||||
Loans held for investment:
|
||||||||||||||||||||||||
C&I loans
|
4,100,939 | 61 | % | 3,232,723 | 52 | % | 3,079,916 | 46 | % | |||||||||||||||
CRE construction loans
|
29,087 | - | 65,512 | 1 | % | 163,951 | 2 | % | ||||||||||||||||
CRE loans
|
742,889 | 11 | % | 937,669 | 15 | % | 1,080,160 | 16 | % | |||||||||||||||
Residential mortgage loans
|
1,756,486 | 26 | % | 2,015,331 | 32 | % | 2,396,995 | 35 | % | |||||||||||||||
Consumer loans
|
7,438 | - | 23,940 | - | 22,816 | - | ||||||||||||||||||
Total loans held for investment
|
6,636,839 | 6,275,175 | 6,743,838 | |||||||||||||||||||||
Net unearned income and deferred expenses
|
(45,417 | ) | (39,276 | ) | (40,077 | ) | ||||||||||||||||||
Total loans held for investment, net
(1)
|
6,591,422 | 6,235,899 | 6,703,761 | |||||||||||||||||||||
Total loans held for sale and investment
|
6,693,658 | 100 | % | 6,242,013 | 100 | % | 6,744,245 | 100 | % | |||||||||||||||
Allowance for loan losses
|
(145,744 | ) | (147,084 | ) | (150,272 | ) | ||||||||||||||||||
Bank loans, net
|
$ | 6,547,914 | $ | 6,094,929 | $ | 6,593,973 |
2008
|
2007
|
|||||||||||||||
Balance
|
%
|
Balance
|
%
|
|||||||||||||
($ in thousands)
|
||||||||||||||||
Loans held for sale, net
(1)
|
$ | 524 | - | $ | 1,571 | - | ||||||||||
Loans held for investment:
|
||||||||||||||||
C&I loans
|
3,411,963 | 47 | % | 1,820,471 | 38 | % | ||||||||||
CRE construction loans
|
346,691 | 5 | % | 123,664 | 3 | % | ||||||||||
CRE loans
|
842,766 | 12 | % | 841,152 | 18 | % | ||||||||||
Residential mortgage loans
|
2,599,042 | 36 | % | 1,933,061 | 41 | % | ||||||||||
Consumer loans
|
23,778 | - | 4,541 | - | ||||||||||||
Total loans held for investment
|
7,224,240 | 4,722,889 | ||||||||||||||
Net unearned income and deferred expenses
|
(41,382 | ) | (13,229 | ) | ||||||||||||
Total loans held for investment, net
(1)
|
7,182,858 | 4,709,660 | ||||||||||||||
Total loans held for sale and investment
|
7,183,382 | 100 | % | 4,711,231 | 100 | % | ||||||||||
Allowance for loan losses
|
(88,155 | ) | (47,022 | ) | ||||||||||||
Bank loans, net
|
$ | 7,095,227 | $ | 4,664,209 |
(1)
|
Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs.
|
Year ended September 30, 2011
|
||||||||
Purchases
|
Sales
|
|||||||
(in thousands)
|
||||||||
C&I loans
|
$ | 156,475 | $ | 57,209 | ||||
CRE loans
|
2,630 | - | ||||||
Residential mortgage loans
|
91,745 | - | ||||||
Total
|
$ | 250,850 | $ | 57,209 |
As of September 30,
|
||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Nonaccrual loans:
|
||||||||||||||||||||
C&I loans
|
$ | 25,685 | $ | - | $ | - | $ | - | $ | - | ||||||||||
CRE loans
|
15,842 | 67,071 | 73,961 | 37,462 | - | |||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||
First mortgage loans
|
90,992 | 80,754 | 54,986 | 14,571 | 1,391 | |||||||||||||||
Home equity loans/lines
|
67 | 71 | 111 | - | - | |||||||||||||||
Total nonaccrual loans
|
132,586 | 147,896 | 129,058 | 52,033 | 1,391 | |||||||||||||||
Accruing loans which are 90 days past due:
|
||||||||||||||||||||
CRE loans
|
- | 830 | 12,461 | - | 682 | |||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||
First mortgage loans
|
690 | 5,098 | 16,863 | 6,113 | 1,992 | |||||||||||||||
Home equity loans/lines
|
47 | 159 | - | 18 | - | |||||||||||||||
Total accruing loans which are 90 days past due
|
737 | 6,087 | 29,324 | 6,131 | 2,674 | |||||||||||||||
Total nonperforming loans
|
133,323 | 153,983 | 158,382 | 58,164 | 4,065 | |||||||||||||||
Real estate owned and other repossessed assets, net:
|
||||||||||||||||||||
CRE
|
7,707 | 19,486 | 4,646 | 1,928 | - | |||||||||||||||
Residential:
|
||||||||||||||||||||
First mortgage
|
6,852 | 8,439 | 4,045 | 2,216 | 1,653 | |||||||||||||||
Home equity
|
13 | - | - | - | - | |||||||||||||||
Total
|
14,572 | 27,925 | 8,691 | 4,144 | 1,653 | |||||||||||||||
Total nonperforming assets, net
|
$ | 147,895 | $ | 181,908 | $ | 167,073 | $ | 62,308 | $ | 5,718 | ||||||||||
Total nonperforming assets as a % of total loans, net and other real estate owned, net
|
2.25 | % | 2.97 | % | 2.53 | % | 0.88 | % | 0.12 | % | ||||||||||
30-59
days
|
60-89
days
|
90 days
or more
|
Total
past due
|
Current
|
Total loans held
for investment
(1)
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
C&I loans
|
$ | - | $ | - | $ | - | $ | - | $ | 4,100,939 | $ | 4,100,939 | ||||||||||||
CRE construction loans
|
- | - | - | - | 29,087 | 29,087 | ||||||||||||||||||
CRE loans
|
- | - | 5,053 | 5,053 | 737,836 | 742,889 | ||||||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||||||
First mortgage loans
|
6,400 | 6,318 | 61,870 | 74,588 | 1,651,181 | 1,725,769 | ||||||||||||||||||
Home equity loans/lines
|
88 | - | 114 | 202 | 30,515 | 30,717 | ||||||||||||||||||
Consumer loans
|
- | - | - | - | 7,438 | 7,438 | ||||||||||||||||||
Total loans held for investment, net
|
$ | 6,488 | $ | 6,318 | $ | 67,037 | $ | 79,843 | $ | 6,556,996 | $ | 6,636,839 |
(1)
|
Excludes any net unearned income and deferred expenses.
|
September 30, 2011
|
September 30, 2010
|
|||||||||||||||||||||||
Gross recorded investment
|
Unpaid principal balance
|
Allowance for losses
|
Gross recorded investment
|
Unpaid principal balance
|
Allowance for losses
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Impaired loans with allowance for loan losses:
(1)
|
||||||||||||||||||||||||
C&I loans
|
$ | 25,685 | $ | 26,535 | $ | 8,478 | $ | - | $ | - | $ | - | ||||||||||||
CRE loans
|
6,122 | 6,131 | 1,014 | 60,598 | 85,652 | 8,469 | ||||||||||||||||||
Residential mortgage loans:
|
||||||||||||||||||||||||
First mortgage loans
|
83,471 | 123,202 | 10,226 | 74,640 | 110,521 | 9,873 | ||||||||||||||||||
Home equity loans/lines
|
128 | 128 | 20 | 144 | 144 | 30 | ||||||||||||||||||
Total
|
115,406 | 155,996 | 19,738 | 135,382 | 196,317 | 18,372 | ||||||||||||||||||
Impaired loans without allowance for loan losses:
(2)
|
||||||||||||||||||||||||
CRE loans
|
9,720 | 20,648 | - | 6,473 | 17,309 | - | ||||||||||||||||||
Residential - first mortgage loans
|
6,553 | 10,158 | - | 3,552 | 5,355 | - | ||||||||||||||||||
Total
|
16,273 | 30,806 | - | 10,025 | 22,664 | - | ||||||||||||||||||
Total impaired loans
|
$ | 131,679 | $ | 186,802 | $ | 19,738 | $ | 145,407 | $ | 218,981 | $ | 18,372 |
(1)
|
Impaired loan balances have had reserves established based upon management’s analysis.
|
(2)
|
When the discounted cash flow, collateral value or market value equals or exceeds the carrying value of the loan, then the loan does not require an allowance. These are generally loans in process of foreclosure that have already been adjusted to fair value.
|
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Average impaired loan balance:
|
||||||||||||
C&I loans
|
$ | 8,673 | $ | - | $ | - | ||||||
CRE loans
|
38,542 | 58,266 | 62,285 | |||||||||
Residential mortgage loans:
|
||||||||||||
First mortgage loans
|
85,863 | 64,540 | 25,976 | |||||||||
Home equity loans/lines
|
142 | 129 | 127 | |||||||||
Total
|
$ | 133,220 | $ | 122,935 | $ | 88,388 | ||||||
Interest income recognized:
|
||||||||||||
Residential mortgage loans:
|
||||||||||||
First mortgage loans
|
$ | 295 | $ | 121 | $ | 39 | ||||||
Home equity loans/lines
|
5 | 3 | 4 | |||||||||
Total
|
$ | 300 | $ | 124 | $ | 43 |
Number of
contracts
|
Pre-modification
outstanding
recorded
investment
|
Post-modification
outstanding
recorded
investment
|
||||||||||
(in thousands)
|
||||||||||||
Troubled debt restructurings:
|
||||||||||||
C&I loans
|
1 | $ | 12,450 | $ | 12,034 | |||||||
CRE loans
|
1 | 9,226 | 9,226 | |||||||||
Residential mortgage – first mortgage loans
|
25 | 10,025 | 10,528 | |||||||||
Total
|
27 | $ | 31,701 | $ | 31,788 |
Residential mortgage
|
||||||||||||||||||||||||||||
C&I
|
CRE
construction
|
CRE
|
First
mortgage
|
Home
equity
|
Consumer
|
Total
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Pass
|
$ | 3,906,358 | $ | 29,087 | $ | 572,124 | $ | 1,607,327 | $ | 30,319 | $ | 7,438 | $ | 6,152,653 | ||||||||||||||
Special mention
|
88,889 | - | 76,021 | 23,684 | 170 | - | 188,764 | |||||||||||||||||||||
Substandard
|
93,658 | - | 90,058 | 94,758 | 228 | - | 278,702 | |||||||||||||||||||||
Doubtful
|
12,034 | - | 4,686 | - | - | - | 16,720 | |||||||||||||||||||||
Total
|
$ | 4,100,939 | $ | 29,087 | $ | 742,889 | $ | 1,725,769 | $ | 30,717 | $ | 7,438 | $ | 6,636,839 |
Loans held for investment
|
||||||||||||||||||||||||||||
Loans held for sale
|
C&I
|
CRE construction
|
CRE
|
Residential mortgage
|
Consumer
|
Total
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
Year ended September 30, 2011:
|
||||||||||||||||||||||||||||
Balance at beginning of year:
|
$ | 23 | $ | 60,464 | $ | 4,473 | $ | 47,771 | $ | 34,297 | $ | 56 | $ | 147,084 | ||||||||||||||
Provision for loan losses
|
(18 | ) | 21,261 | (3,983 | ) | (3,485 | ) | 19,670 | 210 | 33,655 | ||||||||||||||||||
Net charge-offs:
|
||||||||||||||||||||||||||||
Charge-offs
|
- | (458 | ) | - | (15,204 | ) | (22,501 | ) | (255 | ) | (38,418 | ) | ||||||||||||||||
Recoveries
|
- | - | - | 1,670 | 1,744 | 9 | 3,423 | |||||||||||||||||||||
Net charge-offs
|
- | (458 | ) | - | (13,534 | ) | (20,757 | ) | (246 | ) | (34,995 | ) | ||||||||||||||||
Balance at September 30, 2011
|
$ | 5 | $ | 81,267 | $ | 490 | $ | 30,752 | $ | 33,210 | $ | 20 | $ | 145,744 | ||||||||||||||
Year ended September 30, 2010:
|
||||||||||||||||||||||||||||
Balance at beginning of year:
|
$ | 7 | $ | 84,841 | $ | 3,237 | $ | 34,018 | $ | 28,081 | $ | 88 | $ | 150,272 | ||||||||||||||
Provision for loan losses
|
16 | (24,377 | ) | 1,236 | 67,806 | 35,764 | (32 | ) | 80,413 | |||||||||||||||||||
Net charge-offs:
|
||||||||||||||||||||||||||||
Charge-offs
|
- | - | - | (56,402 | ) | (30,837 | ) | - | (87,239 | ) | ||||||||||||||||||
Recoveries
|
- | - | - | 2,349 | 1,289 | - | 3,638 | |||||||||||||||||||||
Net charge-offs
|
- | - | - | (54,053 | ) | (29,548 | ) | - | (83,601 | ) | ||||||||||||||||||
Balance at September 30, 2010
|
$ | 23 | $ | 60,464 | $ | 4,473 | $ | 47,771 | $ | 34,297 | $ | 56 | $ | 147,084 | ||||||||||||||
Year ended September 30, 2009:
|
||||||||||||||||||||||||||||
Balance at beginning of year:
|
$ | 1 | $ | 55,106 | $ | 7,061 | $ | 17,238 | $ | 8,588 | $ | 162 | $ | 88,155 | ||||||||||||||
Provision for loan losses
|
6 | 29,735 | (602 | ) | 94,096 | 46,179 | (74 | ) | 169,341 | |||||||||||||||||||
Net charge-offs:
|
||||||||||||||||||||||||||||
Charge-offs
|
- | - | (3,222 | ) | (77,317 | ) | (27,314 | ) | - | (107,853 | ) | |||||||||||||||||
Recoveries
|
- | - | - | 1 | 628 | - | 629 | |||||||||||||||||||||
Net charge-offs
|
- | - | (3,222 | ) | (77,316 | ) | (26,686 | ) | - | (107,224 | ) | |||||||||||||||||
Balance at September 30, 2009
|
$ | 7 | $ | 84,841 | $ | 3,237 | $ | 34,018 | $ | 28,081 | $ | 88 | $ | 150,272 |
Loans held for investment
|
||||||||||||||||||||||||||||
Loans held for sale
|
C&I
|
CRE construction
|
CRE
|
Residential mortgage
|
Consumer
|
Total
|
||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||
September 30, 2011:
|
||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | 8,478 | $ | - | $ | 1,014 | $ | 2,642 | $ | - | $ | 12,134 | ||||||||||||||
Collectively evaluated for impairment
|
5 | 72,789 | 490 | 29,738 | 30,568 | 20 | 133,610 | |||||||||||||||||||||
Total allowance for loan losses
|
$ | 5 | $ | 81,267 | $ | 490 | $ | 30,752 | $ | 33,210 | $ | 20 | $ | 145,744 | ||||||||||||||
Loan category as a % of total recorded investment
|
2 | % | 61 | % | - | 11 | % | 26 | % | - | 100 | % | ||||||||||||||||
Recorded investment:
(1)
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | 25,685 | $ | - | $ | 15,842 | $ | 23,453 | $ | - | $ | 64,980 | ||||||||||||||
Collectively evaluated for impairment
|
92,748 | 4,075,254 | 29,087 | 727,047 | 1,733,033 | 7,438 | 6,664,607 | |||||||||||||||||||||
Total recorded investment
|
$ | 92,748 | $ | 4,100,939 | $ | 29,087 | $ | 742,889 | $ | 1,756,486 | $ | 7,438 | $ | 6,729,587 | ||||||||||||||
September 30, 2010:
|
||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | - | $ | - | $ | 8,469 | $ | 2,812 | $ | - | $ | 11,281 | ||||||||||||||
Collectively evaluated for impairment
|
23 | 60,464 | 4,473 | 39,302 | 31,485 | 56 | 135,803 | |||||||||||||||||||||
Total allowance for loan losses
|
$ | 23 | $ | 60,464 | $ | 4,473 | $ | 47,771 | $ | 34,297 | $ | 56 | $ | 147,084 | ||||||||||||||
Loan category as a % of total recorded investment
|
- | 52 | % | 1 | % | 15 | % | 32 | % | - | 100 | % | ||||||||||||||||
Recorded investment:
(1)
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | - | $ | - | $ | 67,071 | $ | 16,130 | $ | - | $ | 83,201 | ||||||||||||||
Collectively evaluated for impairment
|
5,847 | 3,232,723 | 65,512 | 870,598 | 1,999,201 | 23,940 | 6,197,821 | |||||||||||||||||||||
Total recorded investment
|
$ | 5,847 | $ | 3,232,723 | $ | 65,512 | $ | 937,669 | $ | 2,015,331 | $ | 23,940 | $ | 6,281,022 |
(1)
|
Excludes any net unearned income and deferred expenses.
|
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Investments in company-owned life insurance
(1)
|
$ | 148,658 | $ | 140,526 | ||||
Investment in FHLB stock
|
65,541 | 127,049 | ||||||
Prepaid expenses
|
69,589 | 76,046 | ||||||
Low-income housing tax credit fund financing asset
(2)
|
41,629 | 43,398 | ||||||
Other assets
|
38,847 | 64,338 | ||||||
Prepaid expenses and other assets
|
$ | 364,264 | $ | 451,357 |
(1)
|
As of September 30, 2011, we own 1,365 life insurance policies with a cumulative face value of $703.3 million.
|
(2)
|
In fiscal year 2010 we sold an investment in a low-income housing tax credit fund and we provided a guaranteed return on investment to the purchaser. As a result of this guarantee obligation, we are the primary beneficiary of the fund (see Note 9 for further information regarding the consolidation of this fund) and we have accounted for this transaction as a financing. As a financing transaction, we continue to account for the asset transferred to the purchaser, and maintain a related liability corresponding to our obligations under the guarantee. As the benefits are delivered to the purchaser of the investment, this financing asset and the related liability will decrease. The related financing liability in the amount of $41.7 million and $43.4 million is included in Trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2011 and 2010, respectively. See Note 17 for further discussion of our obligations under the guarantee.
|
Aggregate
assets
(1)
|
Aggregate
liabilities
(1)
|
|||||||
(in thousands)
|
||||||||
September 30, 2011:
|
||||||||
LIHTC Funds
|
$ | 257,631 | $ | 121,908 | ||||
Guaranteed LIHTC Fund
|
87,811 | 10,424 | ||||||
Restricted Stock Trust Fund
|
8,099 | 4,630 | ||||||
EIF Funds
|
16,223 | - | ||||||
Total
|
$ | 369,764 | $ | 136,962 | ||||
September 30, 2010:
|
||||||||
LIHTC Funds
|
$ | 234,742 | $ | 94,028 | ||||
Guaranteed LIHTC Fund
|
75,449 | 2,382 | ||||||
Restricted Stock Trust Fund
|
7,969 | 4,429 | ||||||
EIF Funds
|
18,215 | - | ||||||
Total
|
$ | 336,375 | $ | 100,839 |
(1)
|
Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE.
|
Year ended September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Assets:
|
||||||||
Assets segregated pursuant to regulations and other segregated assets
|
$ | 18,317 | $ | 14,188 | ||||
Receivables, other
|
11,288 | 6,104 | ||||||
Investments in real estate partnerships held by consolidated variable interest entities
|
320,384 | 280,890 | ||||||
Trust fund investment in RJF common stock
(1)
|
8,099 | 7,798 | ||||||
Prepaid expenses and other assets
|
17,197 | 19,398 | ||||||
Total assets
|
$ | 375,285 | $ | 328,378 | ||||
Liabilities and equity:
|
||||||||
Loans payable of consolidated variable interest entities
(2)
|
$ | 99,982 | $ | 76,464 | ||||
Trade and other payables
|
5,353 | 2,722 | ||||||
Intercompany payables
|
6,904 | 16,930 | ||||||
Total liabilities
|
112,239 | 96,116 | ||||||
RJF Equity
|
5,537 | 5,205 | ||||||
Noncontrolling interests
|
257,509 | 227,057 | ||||||
Total equity
|
263,046 | 232,262 | ||||||
Total liabilities and equity
|
$ | 375,285 | $ | 328,378 |
(1)
|
Included in treasury stock in our Consolidated Statements of Financial Condition.
|
(2)
|
Comprised of several non-recourse loans. We are not contingently liable under any of these loans (see Note 13 for additional information).
|
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Revenues:
|
||||||||||||
Interest
|
$ | 2 | $ | 13 | $ | 71 | ||||||
Other
|
5,385 | 5,793 | 2,621 | |||||||||
Total revenues
|
5,387 | 5,806 | 2,692 | |||||||||
Interest expense
|
6,049 | 4,457 | 4,817 | |||||||||
Net (expense) revenues
|
(662 | ) | 1,349 | (2,125 | ) | |||||||
Non-interest expenses
|
18,670 | 15,445 | 18,060 | |||||||||
Net loss including noncontrolling interests
|
(19,332 | ) | (14,096 | ) | (20,185 | ) | ||||||
Net loss attributable to noncontrolling interests
|
(17,988 | ) | (13,392 | ) | (17,934 | ) | ||||||
Net loss attributable to RJF
|
$ | (1,344 | ) | $ | (704 | ) | $ | (2,251 | ) |
As of September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Aggregate
assets
|
Aggregate
liabilities
|
Our risk
of loss
|
Aggregate
assets
|
Aggregate
liabilities
|
Our risk
of loss
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
LIHTC Funds
|
$ | 1,582,764 | $ | 533,311 | $ | 37,733 | $ | 1,303,500 | $ | 302,749 | $ | 10,691 | ||||||||||||
Other Real Estate Limited Partnerships and LLCs
|
39,344 | 35,467 | 8,068 | 51,166 | 38,699 | 20,246 | ||||||||||||||||||
Total
|
$ | 1,622,108 | $ | 568,778 | $ | 45,801 | $ | 1,354,666 | $ | 341,448 | $ | 30,937 |
September 30, 2011
|
||||||||||||
Aggregate
assets
|
Aggregate
liabilities
|
Our risk
of loss
|
||||||||||
(in thousands)
|
||||||||||||
Managed Funds
|
$ | 12,813 | $ | - | $ | 834 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Land
|
$ | 18,644 | $ | 18,644 | ||||
Construction in process
|
2,237 | 2,111 | ||||||
Software
|
77,898 | 65,711 | ||||||
Buildings, leasehold and land improvements
|
180,392 | 174,680 | ||||||
Furniture, fixtures, and equipment
|
156,523 | 146,311 | ||||||
435,694 | 407,457 | |||||||
Less: Accumulated depreciation and amortization
|
(265,844 | ) | (236,689 | ) | ||||
$ | 169,850 | $ | 170,768 |
Year ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Balance
|
Weighted-average rate
(1)
|
Balance
|
Weighted-average rate
(1)
|
|||||||||||||
($ in thousands)
|
||||||||||||||||
Bank deposits:
|
||||||||||||||||
NOW accounts
|
$ | 4,183 | 0.01 | % | $ | 3,563 | 0.01 | % | ||||||||
Demand deposits (non-interest-bearing)
|
21,663 | - | 3,089 | - | ||||||||||||
Savings and money market accounts
(2)
|
7,468,136 | 0.08 | % | 6,855,490 | 0.12 | % | ||||||||||
Certificates of deposit
|
245,340 | 2.37 | % | 217,576 | 2.94 | % | ||||||||||
Total bank deposits
(3)
|
$ | 7,739,322 | 0.15 | % | $ | 7,079,718 | 0.21 | % |
(1)
|
Weighted-average rate calculation is based on the actual deposit balances at September 30, 2011 and 2010, respectively.
|
(2)
|
Bank deposits at September 30, 2010 include additional deposits received through the Raymond James Bank Deposit Program (“RJBDP”) associated with the point-in-time regulatory balance sheet composition requirements of RJ Bank. These deposits were redirected in October, 2010 to other RJBDP participating banks
|
(3)
|
Bank deposits exclude affiliate deposits of approximately $250 million and $400 million at September 30, 2011 and 2010, respectively.
|
Year ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Denominations
greater than or
equal to $100,000
|
Denominations
less than $100,000
|
Denominations
greater than or
equal to $100,000
|
Denominations
less than $100,000
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Three months or less
|
$ | 7,403 | $ | 7,977 | $ | 6,378 | $ | 10,734 | ||||||||
Over three through six months
|
6,408 | 6,153 | 5,098 | 10,921 | ||||||||||||
Over six through twelve months
|
6,711 | 15,103 | 14,982 | 26,387 | ||||||||||||
Over one through two years
|
19,567 | 19,862 | 6,925 | 15,905 | ||||||||||||
Over two through three years
|
10,045 | 17,286 | 16,084 | 14,621 | ||||||||||||
Over three through four years
|
29,136 | 36,271 | 9,064 | 14,349 | ||||||||||||
Over four through five years
|
34,349 | 29,069 | 29,806 | 36,322 | ||||||||||||
Total
|
$ | 113,619 | $ | 131,721 | $ | 88,337 | $ | 129,239 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Certificates of deposit
|
$ | 6,228 | $ | 6,563 | $ | 8,229 | ||||||
Money market, savings and NOW accounts
(1)
|
6,315 | 9,480 | 15,794 | |||||||||
Total interest expense on deposits
|
$ | 12,543 | $ | 16,043 | $ | 24,023 |
(1)
|
Excludes interest expense on affiliate deposits of $62 thousand and $10 thousand at September 30, 2011 and 2010, respectively. There were no affiliate deposits held by RJ Bank at September 30, 2009.
|
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Other borrowings:
|
||||||||
FHLB advances
|
$ | - | $ | 2,445,000 | (1) | |||
Borrowings on secured lines of credit
(2)
|
- | 62,000 | ||||||
Borrowings on unsecured lines of credit
(3)
|
- | 50,000 | ||||||
Total other borrowings
|
$ | - | $ | 2,557,000 | ||||
(1)
|
FHLB advances outstanding as of September 30, 2010 consisted of several short-term fixed-rate advances and one $2.4 billion overnight advance to meet point-in-time regulatory balance sheet composition requirements related to RJ Bank qualifying as a thrift institution. The overnight advance was repaid on October 1, 2010. See Note 22 for further discussion of these point-in-time requirements.
|
(2)
|
Any borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities.
|
(3)
|
Any borrowings on unsecured lines of credit are day-to-day and are generally utilized for cash management purposes.
|
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Current portion of loans payable
|
$ | 21,332 | $ | 12,804 | ||||
Long-term portion of loans payable
|
78,650 | 63,660 | ||||||
Total loans payable
|
$ | 99,982 | $ | 76,464 |
September 30, 2011
|
||||
(in thousands)
|
||||
Fiscal 2012
|
$ | 21,332 | ||
Fiscal 2013
|
18,771 | |||
Fiscal 2014
|
19,088 | |||
Fiscal 2015
|
17,958 | |||
Fiscal 2016
|
12,978 | |||
Fiscal 2017 and thereafter
|
9,855 | |||
Total
|
$ | 99,982 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Mortgage notes payable
(1)
|
$ | 52,754 | $ | 56,009 | ||||
4.25% senior notes, due 2016, net of unamortized discount of $455 thousand at September 30, 2011
(2)
|
249,545 | - | ||||||
8.60% senior notes, due 2019, net of unamortized discount of $40 thousand and $45 thousand at September 30, 2011 and 2010, respectively
(3)
|
299,960 | 299,955 | ||||||
Other financings
(4)
|
9,709 | - | ||||||
Total corporate debt
|
$ | 611,968 | $ | 355,964 |
(1)
|
Mortgage notes payable pertain to mortgage loans on our headquarters office complex. These mortgage loans are secured by land, buildings, and improvements with a net book value of $59.4 million at September 30, 2011. These mortgage loans bear interest at 5.7% with repayment terms of monthly interest and principal debt service and a January 2023 maturity.
|
(2)
|
In April 2011, we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 4.25% senior notes due April 2016. 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 to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 30 basis points, plus accrued and unpaid interest thereon to the redemption date.
|
(3)
|
In August 2009, we sold in a registered underwritten public offering, $300 million in aggregate principal amount of 8.60% senior notes due August 2019. 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, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points, plus accrued and unpaid interest thereon to the redemption date.
|
(4)
|
Effective in April 2011, we acquired a controlling interest in RJES (see Note 1 for further discussion of this transaction). This financing balance pertains to pre-existing term loan financing of RJES. The term loan bears interest at a variable rate indexed to the Euro Interbank Offered Rate and is secured by certain assets of RJES. The repayment terms include annual principal repayments and a September 2013 maturity.
|
September 30, 2011
|
||||
(in thousands)
|
||||
Fiscal 2012
|
$ | 9,841 | ||
Fiscal 2013
|
6,960 | |||
Fiscal 2014
|
3,860 | |||
Fiscal 2015
|
4,086 | |||
Fiscal 2016
|
254,325 | |||
Fiscal 2017 and thereafter
|
332,896 | |||
Total
|
$ | 611,968 |
Asset derivatives
|
|||||||
September 30, 2011
|
September 30, 2010
|
||||||
Balance sheet location
|
Notional amount
|
Fair value
(1)
|
Balance sheet location
|
Notional amount
|
Fair value
(1)
|
||
(in thousands)
|
|||||||
Derivatives not designated as hedging instruments:
|
|||||||
Interest rate contracts
|
Trading instruments
|
$ 2,248,150
|
$ 126,867
|
Trading instruments
|
$ 1,130,767
|
$ 102,490
|
(1)
|
The fair value in this table is presented on a gross basis before netting of cash collateral and by counterparty according to our legally enforceable master netting arrangements. The fair value in the Consolidated Statements of Financial Condition is presented net.
|
Liabilities derivatives
|
|||||||
September 30, 2011
|
September 30, 2010
|
||||||
Balance sheet location
|
Notional amount
|
Fair value
(1)
|
Balance sheet location
|
Notional amount
|
Fair value
(1)
|
||
(in thousands)
|
|||||||
Derivatives not designated as hedging instruments:
|
|||||||
Interest rate contracts
|
Trading instruments sold
|
$ 1,722,820
|
$ 112,457
|
Trading instruments sold
|
$ 1,172,927
|
$ 86,039
|
(1)
|
The fair value in this table is presented on a gross basis before netting of cash collateral and by counterparty according to our legally enforceable master netting arrangements. The fair value in the Consolidated Statements of Financial Condition is presented net.
|
Amount of gain (loss) on derivatives
recognized in income
|
|||||||||||||
Fiscal year ended September 30,
|
|||||||||||||
Location of gain (loss)
recognized on derivatives in
Consolidated Statements of Income and Comprehensive Income
|
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
|||||||||||||
Derivatives not designated as hedging instruments:
|
|||||||||||||
Interest rate contracts
|
Net trading profits
|
$ | 750 | $ | (3,471 | ) | $ | (505 | ) | ||||
Other revenues
|
- | (297 | ) | (1,004 | ) |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Recorded in:
|
||||||||||||
Income including noncontrolling interests
|
$ | 182,894 | $ | 133,625 | $ | 96,024 | ||||||
Equity, for compensation expense for tax purposes in excess of (less than) amounts recognized for financial reporting purposes
|
374 | (2,280 | ) | (3,210 | ) | |||||||
Equity, for available for sale securities
|
1,497 | 17,020 | (2,963 | ) | ||||||||
Total
|
$ | 184,765 | $ | 148,365 | $ | 89,851 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Current:
|
||||||||||||
Federal
|
$ | 148,266 | $ | 140,482 | $ | 125,557 | ||||||
State and local
|
29,387 | 15,592 | 13,264 | |||||||||
Foreign
|
11,249 | 3,380 | 1,875 | |||||||||
188,902 | 159,454 | 140,696 | ||||||||||
Deferred:
|
||||||||||||
Federal
|
(6,279 | ) | (23,190 | ) | (39,266 | ) | ||||||
State and local
|
(3,887 | ) | (2,778 | ) | (4,538 | ) | ||||||
Foreign
|
4,158 | 139 | (868 | ) | ||||||||
(6,008 | ) | (25,829 | ) | (44,672 | ) | |||||||
Total provision for income taxes
|
$ | 182,894 | $ | 133,625 | $ | 96,024 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Provision calculated at statutory rates
|
$ | 161,436 | $ | 126,667 | $ | 87,071 | ||||||
State income taxes, net of federal benefit
|
16,575 | 8,329 | 5,672 | |||||||||
Other, net
|
4,883 | (1,371 | ) | 3,281 | ||||||||
Total provision for income tax
|
$ | 182,894 | $ | 133,625 | $ | 96,024 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
U.S.
|
$ | 421,662 | $ | 356,067 | $ | 256,659 | ||||||
Foreign
|
39,585 | 5,841 | (7,885 | ) | ||||||||
Income excluding noncontrolling interest and before provision for income taxes
|
$ | 461,247 | $ | 361,908 | $ | 248,774 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Deferred tax assets:
|
||||||||
Deferred compensation
|
$ | 79,192 | $ | 70,445 | ||||
Allowances for loan losses and reserves for unfunded commitments
|
63,061 | 62,562 | ||||||
Interest on nonaccrual loans
|
366 | 228 | ||||||
Unrealized loss
|
26,381 | 30,460 | ||||||
Accrued expenses
|
16,018 | 15,100 | ||||||
Capitalized expenditures
|
344 | 3,747 | ||||||
Net operating loss and credit carryforwards
|
4,126 | 3,075 | ||||||
Other
|
23,919 | 16,087 | ||||||
Total gross deferred tax assets
|
213,407 | 201,704 | ||||||
Less: valuation allowance
|
(2,536 | ) | (3,075 | ) | ||||
Total deferred tax assets
|
210,871 | 198,629 | ||||||
Deferred tax liabilities:
|
||||||||
Aircraft lease
|
(5,716 | ) | (6,793 | ) | ||||
Undistributed earnings of foreign subsidiaries
|
(16,517 | ) | (16,143 | ) | ||||
Other
|
(16,727 | ) | (10,485 | ) | ||||
Total deferred tax liabilities
|
(38,960 | ) | (33,421 | ) | ||||
Net deferred tax assets
|
$ | 171,911 | $ | 165,208 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Liability for unrecognized tax benefits at beginning of fiscal year
|
$ | 4,308 | $ | 4,565 | $ | 4,862 | ||||||
Increases for tax positions related to the current year
|
1,199 | 1,108 | 779 | |||||||||
Increases for tax positions related to prior years
|
551 | 353 | 219 | |||||||||
Decreases for tax positions related to prior years
|
(44 | ) | (70 | ) | (114 | ) | ||||||
Decreases due to lapsed statute of limitations
|
(1,284 | ) | (1,433 | ) | (1,037 | ) | ||||||
Decreases related to settlements
|
- | (215 | ) | (144 | ) | |||||||
Liability for unrecognized tax benefits at end of fiscal year
|
$ | 4,730 | $ | 4,308 | $ | 4,565 |
Sources of collateral
|
||||
(in thousands)
|
||||
Securities purchased under agreements to resell and other collateralized financings
|
$ | 397,739 | ||
Securities received in securities borrowed vs. cash transactions
|
212,015 | |||
Collateral received for margin loans
|
1,248,290 | |||
Total
|
$ | 1,858,044 |
Uses of collateral
and trading securities
|
||||
(in thousands)
|
||||
Securities sold under agreements to repurchase
|
$ | 206,474 | ||
Securities delivered in securities loaned vs. cash transactions
|
771,130 | |||
Collateral used for cash loans
|
15 | |||
Collateral used for deposits at clearing organizations
|
119,387 | |||
Total
|
$ | 1,097,006 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Net unrealized gain (loss) on available for sale securities, net of tax effect of $1.5 million in fiscal year 2011, $17 million in fiscal year 2010, and ($3) million in fiscal year 2009
|
$ | 2,621 | $ | 30,147 | $ | (5,848 | ) | |||||
Net change in currency translations
|
(6,029 | ) | 5,459 | (1,979 | ) | |||||||
Other comprehensive income
|
$ | (3,408 | ) | $ | 35,606 | $ | (7,827 | ) |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Net unrealized loss on available for sale securities, net of tax effects of ($17.3) million in fiscal year 2011 and ($18.8) million in fiscal year 2010
|
$ | (29,204 | ) | $ | (31,825 | ) | ||
Net currency translations
|
19,599 | 25,628 | ||||||
Accumulated other comprehensive income
|
$ | (9,605 | ) | $ | (6,197 | ) |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Interest income:
|
||||||||||||
Margin balances
|
$ | 52,361 | $ | 46,650 | $ | 37,617 | ||||||
Assets segregated pursuant to regulations and other segregated assets
|
8,424 | 7,685 | 14,786 | |||||||||
Bank loans, net of unearned income
|
270,057 | 257,988 | 320,167 | |||||||||
Available for sale securities
|
10,815 | 17,846 | 24,373 | |||||||||
Trading instruments
|
20,549 | 18,146 | 13,112 | |||||||||
Stock borrow
|
6,035 | 8,448 | 10,269 | |||||||||
Interest income of consolidated VIEs
|
2 | 13 | 71 | |||||||||
Other
|
24,075 | 14,116 | 23,189 | |||||||||
Total interest income
|
392,318 | 370,892 | 443,584 | |||||||||
Interest expense:
|
||||||||||||
Brokerage client liabilities
|
3,422 | 3,688 | 10,958 | |||||||||
Retail bank deposits
|
12,543 | 16,053 | 24,023 | |||||||||
Stock loan
|
1,807 | 3,530 | 3,838 | |||||||||
Borrowed funds
|
3,969 | 6,099 | 7,946 | |||||||||
Senior notes
|
31,320 | 26,091 | 2,899 | |||||||||
Interest expense of consolidated VIEs
|
6,049 | 4,457 | 4,817 | |||||||||
Other
|
6,720 | 2,933 | 2,472 | |||||||||
Total interest expense
|
65,830 | 62,851 | 56,953 | |||||||||
Net interest income
|
326,488 | 308,041 | 386,631 | |||||||||
Less: provision for loan losses
|
(33,655 | ) | (80,413 | ) | (169,341 | ) | ||||||
Net interest income after provision for loan losses
|
$ | 292,833 | $ | 227,628 | $ | 217,290 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Total share-based expense
|
$ | 7,319 | $ | 8,460 | $ | 6,000 | ||||||
Income tax benefits related to share-based expense
|
319 | 310 | 247 |
Year ended September 30,
|
|||
2011
|
2010
|
2009
|
|
Dividend yield
|
1.80%
|
1.81%
|
2.55%
|
Expected volatility
|
43.74%
|
54.44%
|
46.99%
|
Risk-free interest rate
|
1.41%
|
2.57%
|
1.57%
|
Expected lives
|
4.9 yrs
|
5.0 yrs
|
5.4 yrs
|
Options
for shares
|
Weighted- average exercise
price ($)
|
Weighted- average remaining contractual
term (years)
|
Aggregate intrinsic
value ($)
|
|||||||||||||
Outstanding at October 1, 2010
|
4,646,015 | $ | 26.32 | |||||||||||||
Granted
|
262,305 | 28.71 | ||||||||||||||
Exercised
|
(1,249,847 | ) | 24.70 | |||||||||||||
Forfeited
|
(85,226 | ) | 26.14 | |||||||||||||
Expired
|
(15,411 | ) | 28.67 | |||||||||||||
Outstanding at September 30, 2011
|
3,557,836 | $ | 27.06 | 2.72 | $ | 3,344,000 | ||||||||||
Exercisable at September 30, 2011
|
717,555 | $ | 29.27 | 1.25 | $ | 178,000 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands, except per option amounts)
|
||||||||||||
Weighted-average grant date fair value per option
|
$ | 9.62 | $ | 10.83 | $ | 6.22 | ||||||
Total intrinsic value of stock options exercised
|
10,553 | 2,323 | 3,211 | |||||||||
Total grant date fair value of stock options vested
|
9,206 | 2,784 | 7,512 |
Shares/Units
|
Weighted- average
grant date
fair value ($)
|
|||||||
Non-vested at October 1, 2010
|
2,964,063 | $ | 25.58 | |||||
Granted
|
946,299 | 30.76 | ||||||
Vested
|
(612,027 | ) | 24.23 | |||||
Forfeited
|
(131,193 | ) | 25.92 | |||||
Non-vested at September 30, 2011
|
3,167,142 | $ | 27.38 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Total share-based expense
|
$ | 19,522 | $ | 20,354 | $ | 18,707 | ||||||
Income tax benefits related to share-based expense
|
7,418 | 7,643 | 7,025 |
Shares/Units
|
Weighted- average
grant date
fair value ($)
|
|||||||
Non-vested at October 1, 2010
|
1,154,387 | $ | 24.68 | |||||
Granted
|
407,141 | 31.53 | ||||||
Vested
|
(355,158 | ) | 33.23 | |||||
Forfeited
|
(18,038 | ) | 25.42 | |||||
Non-vested at September 30, 2011
|
1,188,332 | $ | 24.46 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Total share-based expense
|
$ | 10,657 | $ | 8,805 | $ | 10,621 | ||||||
Income tax benefits related to share-based expense
|
4,050 | 3,306 | 3,988 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Total share-based expense (expense reduction)
|
$ | 952 | $ | 1,899 | $ | (5,291 | ) | |||||
Income tax benefits related to share-based expense
|
362 | 713 | (1,987 | ) |
Year ended September 30,
|
|||
2011
|
2010
|
2009
|
|
Dividend yield
|
1.62%
|
1.73%
|
2.34%
|
Expected volatility
|
44.14%
|
51.84%
|
44.44%
|
Risk-free interest rate
|
0.65%
|
0.88%
|
1.04%
|
Expected lives
|
2.54 yrs.
|
2.24 yrs
|
2.20 yrs
|
Options
for shares
|
Weighted-average exercise
price ($)
|
Weighted-average remaining contractual
term (years)
|
Aggregate intrinsic
value ($)
|
|||||||||||||
Outstanding at October 1, 2010
|
790,438 | $ | 26.07 | - |
|
|||||||||||
Granted
|
40,900 | 28.74 | - | |||||||||||||
Exercised
|
(343,388 | ) | 21.62 | - | ||||||||||||
Forfeited
|
(10,950 | ) | 30.29 | - | ||||||||||||
Expired
|
(2,250 | ) | 22.87 | - | ||||||||||||
Outstanding at September 30, 2011
|
474,750 | $ | 29.45 | 2.06 | $ | 383,000 | ||||||||||
Exercisable at September 30, 2011
|
4,500 | $ | 21.50 | 0.01 | $ | 20,000 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Total intrinsic value of stock options exercised
|
$ | 3,300 | $ | 2,676 | $ | 1,241 | ||||||
Total fair value of stock options vested
|
1,448 | - | 1,694 |
Shares/Units
|
Weighted- average
reporting date
fair value ($)
|
|||||||
Non-vested at October 1, 2010
|
156,380 | $ | 25.33 | |||||
Granted
|
- | |||||||
Vested
|
(1,550 | ) | ||||||
Forfeited
|
(2,500 | ) | ||||||
Non-vested at September 30, 2011
|
152,330 | $ | 25.96 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Total share-based expense
|
$ | 923 | $ | 858 | $ | 378 | ||||||
Income tax benefits related to share-based expense
|
351 | 322 | 142 |
As of September 30,
|
||||||||
2011
|
2010
|
|||||||
($ in thousands)
|
||||||||
Raymond James & Associates, Inc.:
|
||||||||
(Alternative Method elected)
|
||||||||
Net capital as a percent of aggregate debit items
|
27.02 | % | 17.37 | % | ||||
Net capital
|
$ | 409,869 | $ | 253,341 | ||||
Less: Required net capital
|
(30,340 | ) | (29,169 | ) | ||||
Excess net capital
|
$ | 379,529 | $ | 224,172 |
As of September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Raymond James Financial Services, Inc.:
|
||||||||
(Alternative Method elected)
|
||||||||
Net capital
|
$ | 17,829 | $ | 14,540 | ||||
Less: Required net capital
|
(250 | ) | (250 | ) | ||||
Excess net capital
|
$ | 17,579 | $ | 14,290 |
As of September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Raymond James Ltd.:
|
||||||||
Risk-adjusted capital before minimum
|
$ | 70,855 | $ | 52,022 | ||||
Less: Required minimum capital
|
(250 | ) | (250 | ) | ||||
Risk adjusted capital
|
$ | 70,605 | $ | 51,772 |
Actual
|
Requirement for capital adequacy purposes
|
To be well capitalized under prompt corrective action provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
As of September 30, 2011
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
$ | 1,018,858 | 13.7 | % | $ | 595,165 | 8.0 | % | $ | 743,956 | 10.0 | % | ||||||||||||
Tier I capital (to risk-weighted assets)
|
925,212 | 12.4 | % | 297,582 | 4.0 | % | 446,374 | 6.0 | % | |||||||||||||||
Tier I capital (to adjusted assets)
|
925,212 | 10.3 | % | 360,961 | 4.0 | % | 451,202 | 5.0 | % | |||||||||||||||
As of September 30, 2010:
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
$ | 985,961 | 13.0 | % | $ | 608,096 | 8.0 | % | $ | 760,120 | 10.0 | % | ||||||||||||
Tier I capital (to risk-weighted assets)
|
890,442 | 11.7 | % | 304,048 | 4.0 | % | 456,072 | 6.0 | % | |||||||||||||||
Tier I capital (to adjusted assets)
|
890,442 | 8.2 | % | 434,193 | 4.0 | % | 542,741 | 5.0 | % |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Standby letters of credit
|
$ | 216,004 | $ | 235,729 | ||||
Open end consumer lines of credit
|
31,471 | 32,328 | ||||||
Commercial lines of credit
|
1,900,925 | 1,660,204 | ||||||
Unfunded loan commitments - variable rate
|
115,562 | 120,363 | ||||||
Unfunded loan commitments – fixed rate
|
- | 2,824 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands, except per share amounts)
|
||||||||||||
Income for basic earnings per common share:
|
||||||||||||
Net income attributable to RJF
|
$ | 278,353 | $ | 228,283 | $ | 152,750 | ||||||
Less allocation of earnings and dividends to participating securities
(1)
|
(8,777 | ) | (9,607 | ) | (6,339 | ) | ||||||
Net income attributable to RJF common shareholders
|
$ | 269,576 | $ | 218,676 | $ | 146,411 | ||||||
Income for diluted earnings per common share:
|
||||||||||||
Net income attributable to RJF
|
$ | 278,353 | $ | 228,283 | $ | 152,750 | ||||||
Less allocation of earnings and dividends to participating securities
(1)
|
(8,756 | ) | (9,592 | ) | (6,336 | ) | ||||||
Net income attributable to RJF common shareholders
|
$ | 269,597 | $ | 218,691 | $ | 146,414 | ||||||
Common shares:
|
||||||||||||
Average common shares in basic computation
|
122,448 | 119,335 | 117,188 | |||||||||
Dilutive effect of outstanding stock options and certain restricted stock units
|
388 | 257 | 100 | |||||||||
Average common shares used in diluted computation
|
122,836 | 119,592 | 117,288 | |||||||||
Earnings per common share:
|
||||||||||||
Basic
|
$ | 2.20 | $ | 1.83 | $ | 1.25 | ||||||
Diluted
|
$ | 2.19 | $ | 1.83 | $ | 1.25 | ||||||
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive
|
2,136 | 3,549 | 4,176 |
(1)
|
Represents dividends paid during the period to participating securities plus an allocation of undistributed earnings to participating securities. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of 4 million, 5.3 million, and 5.2 million for the years ended September 30, 2011, 2010 and 2009, respectively. Dividends paid to participating securities amounted to $1.9 million, $2.2 million and $2.1 million during the years ended September 30, 2011, 2010 and 2009, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.
|
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
Dividends per common share - declared
|
$ | 0.52 | $ | 0.44 | $ | 0.44 | ||||||
Dividends per common share - paid
|
$ | 0.50 | $ | 0.44 | $ | 0.44 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Revenues:
|
||||||||||||
Private Client Group
|
$ | 2,185,990 | $ | 1,903,101 | $ | 1,557,462 | ||||||
Capital Markets
|
664,276 | 591,949 | 533,254 | |||||||||
Asset Management
|
226,511 | 196,817 | 177,359 | |||||||||
RJ Bank
|
281,992 | 276,770 | 343,366 | |||||||||
Emerging Markets
|
43,184 | 16,639 | 14,891 | |||||||||
Securities Lending
|
6,432 | 8,837 | 10,269 | |||||||||
Proprietary Capital
|
16,805 | 17,029 | 12,742 | |||||||||
Other
|
10,524 | 8,056 | 7,153 | |||||||||
Intersegment eliminations
|
(35,828 | ) | (39,682 | ) | (53,977 | ) | ||||||
Total revenues
|
$ | 3,399,886 | $ | 2,979,516 | $ | 2,602,519 | ||||||
Income (loss) excluding noncontrolling interests and before provision for income taxes
:
|
||||||||||||
Private Client Group
|
$ | 218,811 | $ | 160,470 | $ | 84,873 | ||||||
Capital Markets
|
77,990 | 84,236 | 73,481 | |||||||||
Asset Management
|
66,176 | 46,981 | 30,411 | |||||||||
RJ Bank
|
172,993 | 112,009 | 80,011 | |||||||||
Emerging Markets
|
4,531 | (5,446 | ) | (4,886 | ) | |||||||
Securities Lending
|
1,488 | 2,721 | 3,651 | |||||||||
Proprietary Capital
|
4,391 | 1,728 | 1,035 | |||||||||
Other
|
(85,133 | ) (1) | (40,791 | ) | (19,802 | ) | ||||||
Pre-tax income excluding noncontrolling interests
|
461,247 | 361,908 | 248,774 | |||||||||
Add: net loss attributable to noncontrolling interests
|
(10,502 | ) | (5,764 | ) | (12,373 | ) | ||||||
Income including noncontrolling interests and before provision for income taxes
|
$ | 450,745 | $ | 356,144 | $ | 236,401 |
(1)
|
The Other segment for the year ended September 30, 2011 includes a $41.4 million pre-tax loss on auction rate securities repurchased (see further discussion of this matter in Note 17).
|
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Net interest income (expense):
|
||||||||||||
Private Client Group
|
$ | 67,496 | $ | 55,934 | $ | 50,698 | ||||||
Capital Markets
|
4,967 | 5,377 | 2,800 | |||||||||
Asset Management
|
107 | 45 | 151 | |||||||||
RJ Bank
|
271,306 | 259,565 | 322,393 | |||||||||
Emerging Markets
|
1,199 | 93 | 1,035 | |||||||||
Securities Lending
|
4,228 | 4,918 | 6,431 | |||||||||
Proprietary Capital
|
473 | 1,953 | 173 | |||||||||
Other
|
(23,288 | ) | (19,844 | ) | 2,950 | |||||||
Net interest income
|
$ | 326,488 | $ | 308,041 | $ | 386,631 |
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Total assets:
|
||||||||
Private Client Group
(1)
|
$ | 5,581,214 | $ | 4,053,054 | ||||
Capital Markets
(2)
|
1,478,974 | 1,791,618 | ||||||
Asset Management
|
61,793 | 62,850 | ||||||
RJ Bank
|
8,741,975 | 10,818,240 | ||||||
Emerging Markets
|
74,362 | 27,538 | ||||||
Securities Lending
|
817,770 | 680,326 | ||||||
Proprietary Capital
|
176,919 | 167,010 | ||||||
Other
|
1,073,988 | 282,445 | ||||||
Total
|
$ | 18,006,995 | $ | 17,883,081 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Revenues:
|
||||||||||||
United States
|
$ | 2,947,633 | $ | 2,653,174 | $ | 2,359,564 | ||||||
Canada
|
339,067 | 256,105 | 186,901 | |||||||||
Europe
|
63,665 | 54,037 | 41,427 | |||||||||
Other
|
49,521 | 16,200 | 14,627 | |||||||||
Total
|
$ | 3,399,886 | $ | 2,979,516 | $ | 2,602,519 | ||||||
Pre-tax income excluding noncontrolling interests:
|
||||||||||||
United States
|
$ | 416,955 | $ | 356,249 | $ | 256,231 | ||||||
Canada
|
42,333 | 12,826 | (967 | ) | ||||||||
Europe
|
(2,312 | ) | (1,812 | ) | (17 | ) | ||||||
Other
|
4,271 | (5,355 | ) | (6,473 | ) | |||||||
Total
|
$ | 461,247 | $ | 361,908 | $ | 248,774 |
Year ended September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Total assets:
|
||||||||
United States
(1)
|
$ | 16,456,892 | $ | 16,369,401 | ||||
Canada
(2)
|
1,436,505 | 1,443,943 | ||||||
Europe
|
50,666 | (3) | 28,057 | |||||
Other
|
62,932 | 41,680 | ||||||
Total
|
$ | 18,006,995 | $ | 17,883,081 |
(1)
|
Includes $32 million of goodwill at September 30, 2011 and $30 million of goodwill at September 30, 2010.
|
(2)
|
Includes $33 million of goodwill.
|
(3)
|
Includes $7 million of goodwill.
|
September 30,
|
||||||||
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Assets:
|
||||||||
Cash and cash equivalents
(1)
|
$ | 252,601 | $ | 286,868 | ||||
Intercompany receivables from subsidiaries:
|
||||||||
Bank subsidiary
|
188 | 12 | ||||||
Nonbank subsidiaries
|
285,326 | (2) | 30,767 | |||||
Investments in consolidated subsidiaries:
|
||||||||
Bank subsidiary
|
896,004 | 858,613 | ||||||
Nonbank subsidiaries
|
1,506,008 | 1,227,130 | ||||||
Property and equipment, net
|
9,938 | 10,217 | ||||||
Goodwill
|
31,751 | 29,538 | ||||||
Other assets
|
274,630 | 265,084 | ||||||
Total assets
|
$ | 3,256,446 | $ | 2,708,229 | ||||
Liabilities and equity:
|
||||||||
Trade and other
|
$ | 34,108 | $ | 19,297 | ||||
Intercompany payables to subsidiaries:
|
||||||||
Bank subsidiary
|
- | - | ||||||
Nonbank subsidiaries
|
1,077 | 7,167 | ||||||
Accrued compensation and benefits
|
84,138 | 78,994 | ||||||
Corporate debt
|
549,504 | 299,955 | ||||||
Total liabilities
|
668,827 | 405,413 | ||||||
Equity
|
2,587,619 | 2,302,816 | ||||||
Total liabilities and equity
|
$ | 3,256,446 | $ | 2,708,229 |
(1)
|
Includes $250 million and $284 million at September 30, 2011 and 2010, respectively, deposited with RJ Bank. The September 30, 2010 balance is associated with the point-in-time regulatory balance sheet composition requirements of RJ Bank. See Note 22 for discussion of the RJ Bank point-in-time requirements.
|
(2)
|
Of the total receivable from subsidiaries, $221 million at September 30, 2011 is invested in cash and cash equivalents by the subsidiary on behalf of the Parent.
|
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Revenues:
|
||||||||||||
Dividends from bank subsidiary
|
$ | 100,000 | $ | - | $ | - | ||||||
Dividends from nonbank subsidiaries
|
164,121 | 199,644 | 154,898 | |||||||||
Interest from subsidiaries
|
1,068 | 1,558 | 2,527 | |||||||||
Interest
|
240 | 93 | 617 | |||||||||
Other, net
|
7,762 | 3,178 | (1,656 | ) | ||||||||
Total revenues
|
273,191 | 204,473 | 156,386 | |||||||||
Expenses:
|
||||||||||||
Compensation and benefits
|
28,214 | 26,225 | 24,829 | |||||||||
Communications and information processing
|
3,821 | 3,723 | 5,194 | |||||||||
Occupancy and equipment costs
|
1,112 | 1,768 | 1,652 | |||||||||
Business development
|
11,684 | 7,409 | 6,448 | |||||||||
Interest
|
31,309 | 26,020 | 3,876 | |||||||||
Other
|
5,894 | 5,017 | 3,798 | |||||||||
Intercompany allocations and charges
|
(28,757 | ) | (23,170 | ) | (21,440 | ) | ||||||
Total expenses
|
53,277 | 46,992 | 24,357 | |||||||||
Income before income tax benefits and equity in undistributed net income of subsidiaries
|
219,914 | 157,481 | 132,029 | |||||||||
Income tax benefits
|
(11,037 | ) | (25,947 | ) | (16,736 | ) | ||||||
Income before equity in undistributed net income of subsidiaries
|
230,951 | 183,428 | 148,765 | |||||||||
Equity in undistributed net income of subsidiaries
|
47,402 | 44,855 | 3,985 | |||||||||
Net income
|
$ | 278,353 | $ | 228,283 | $ | 152,750 |
Year ended September 30,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 278,353 | $ | 228,283 | $ | 152,750 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
(Gain) loss on investments
|
(6,758 | ) | (3,416 | ) | 2,109 | |||||||
Loss (gain) on company-owned life insurance
|
3,208 | (10,290 | ) | 6,842 | ||||||||
Equity in undistributed net income of subsidiaries
|
(47,402 | ) | (44,855 | ) | (3,985 | ) | ||||||
Other, net
|
40,917 | 24,001 | 45,557 | |||||||||
Net change in:
|
||||||||||||
Intercompany receivables
|
(254,735 | ) | 152,103 | (25,142 | ) | |||||||
Other
|
12,406 | (19,425 | ) | (2,508 | ) | |||||||
Intercompany payables
|
(6,090 | ) | 5,354 | 1,562 | ||||||||
Trade and other
|
12,093 | 7,599 | (695 | ) | ||||||||
Accrued compensation and benefits
|
5,144 | 21,735 | (7,116 | ) | ||||||||
Net cash provided by operating activities
|
37,136 | 361,089 | 169,374 | |||||||||
Cash flows from investing activities:
|
||||||||||||
Investments in subsidiaries, net
|
(264,000 | ) | (15,650 | ) | (210,611 | ) | ||||||
Purchases of investments, net
|
(5,859 | ) | (8,926 | ) | (312 | ) | ||||||
Purchase of investments in company-owned life insurance, net
|
(12,224 | ) | (13,293 | ) | (22,793 | ) | ||||||
Net cash used in investing activities
|
(282,083 | ) | (37,869 | ) | (233,716 | ) | ||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from borrowed funds, net
|
249,498 | - | 97,043 | |||||||||
Exercise of stock options and employee stock purchases
|
47,383 | 19,917 | 25,022 | |||||||||
Purchase of treasury stock
|
(23,111 | ) | (3,537 | ) | (4,339 | ) | ||||||
Dividends on common stock
|
(63,090 | ) | (56,009 | ) | (54,140 | ) | ||||||
Net cash provided by (used in) financing activities
|
210,680 | (39,629 | ) | 63,586 | ||||||||
Net (decrease) increase in cash and cash equivalents
|
(34,267 | ) | 283,591 | (756 | ) | |||||||
Cash and cash equivalents at beginning of year
|
286,868 | 3,277 | 4,033 | |||||||||
Cash and cash equivalents at end of year
|
$ | 252,601 | $ | 286,868 | $ | 3,277 | ||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid for interest
|
$ | 25,800 | $ | 25,442 | $ | 918 | ||||||
Cash (received) paid for income taxes
|
$ | (15,613 | ) | $ | 20,919 | $ | (24,208 | ) |
Fiscal year 2011
|
1st Qtr.
|
2nd Qtr.
|
3rd Qtr.
|
4th Qtr.
|
||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
Revenues
|
$ | 830,333 | $ | 866,744 | $ | 868,212 | $ | 834,597 | ||||||||
Net revenues
|
813,829 | 852,057 | 850,387 | 817,783 | ||||||||||||
Non-interest expenses
|
687,083 | 727,819 | 769,308 | 699,101 | ||||||||||||
Income including noncontrolling interests and before provision for
|
||||||||||||||||
income taxes
|
126,746 | 124,238 | 81,079 | 118,682 | ||||||||||||
Net income attributable to Raymond James Financial, Inc.
|
81,723 | 80,917 | 46,786 | 68,927 | ||||||||||||
Net income per share - basic
|
0.65 | 0.64 | 0.37 | 0.54 | ||||||||||||
Net income per share - diluted
(1)
|
0.65 | 0.64 | 0.37 | 0.54 | ||||||||||||
Dividends declared per share
|
0.13 | 0.13 | 0.13 | 0.13 |
Fiscal year 2010
|
1st Qtr.
|
2nd Qtr.
|
3rd Qtr.
|
4th Qtr.
|
||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
Revenues
|
$ | 702,669 | $ | 749,987 | $ | 763,612 | $ | 763,248 | ||||||||
Net revenues
|
686,967 | 734,439 | 747,373 | 747,886 | ||||||||||||
Non-interest expenses
|
619,854 | 640,231 | 652,026 | 648,410 | ||||||||||||
Income including noncontrolling interests and before provision for
|
||||||||||||||||
income taxes
|
67,113 | 94,208 | 95,347 | 99,476 | ||||||||||||
Net income attributable to Raymond James Financial, Inc.
|
42,903 | 55,628 | 60,687 | 69,065 | ||||||||||||
Net income per share - basic
(1)
|
0.35 | 0.45 | 0.49 | 0.55 | ||||||||||||
Net income per share - diluted
|
0.35 | 0.45 | 0.48 | 0.55 | ||||||||||||
Dividends declared per share
|
0.11 | 0.11 | 0.11 | 0.11 |
(1)
|
Due to rounding the quarterly results do not add to the total for the year.
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
(b)
|
Exhibit Listing
|
Exhibit
Number
|
Description
|
||
3.1 |
Restated Articles of Incorporation of Raymond James Financial, Inc. as filed with the Secretary of State Florida on November 25, 2008, incorporated by reference to Exhibit 3(i).1 as filed with Form 10-K on November 28, 2008.
|
||
3.2 |
Amended and Restated By-Laws of Raymond James Financial, Inc. reflecting amendments adopted by the Board of Directors on August 25, 2010, incorporated by reference to Exhibit 3(ii) as filed with Form 8-K on August 26, 2010.
|
||
4.1 |
Description of Capital Stock, incorporated by reference to Exhibit 4.1 as filed with Form 10-Q on August 10, 2009.
|
||
4.2 |
Indenture, dated as of August 10, 2009 (for senior debt securities) between Raymond James Financial, Inc. and the Bank of New York Mellon Trust Company, N.A., incorporated by reference to Exhibit 4.2 as filed with Form 10-Q on August 10, 2009.
|
||
4.3 |
First Supplemental Indenture, dated as of August 20, 2009 (for senior debt securities) between Raymond James Financial, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.1 as filed with Form 8-K on August 20, 2009.
|
||
4.4 |
Second Supplemental Indenture, dated as of April 11, 2011 (for senior debt securities) between Raymond James Financial, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.1 as filed with Form 8-K on April 11, 2011.
|
||
10.1 | * |
Raymond James Financial, Inc. 2002 Incentive Stock Option Plan effective February 14, 2002, incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-8, No. 333-98537, filed August 22, 2002.
|
|
10.2 |
Mortgage Agreement for $75 million dated as of December 13, 2002 incorporated by reference to Exhibit No. 10 as filed with Form 10-K on December 23, 2002.
|
||
10.3 | * |
Raymond James Financial, Inc. Stock Option Plan for Key Management Personnel effective November 21, 1996, incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-8, No. 333-103277, filed February 18, 2003.
|
|
10.4 |
Form of Indemnification Agreement with Directors, incorporated by reference to Exhibit 10.18 as filed with Form 10-K on December 8, 2004.
|
||
10.5 | * |
Raymond James Financial, Inc. Amended Stock Option Plan for Outside Directors, incorporated by reference to Exhibit 10 as filed with Form 10-Q on February 9, 2006.
|
|
10.6 |
The 2007 Raymond James Financial, Inc. Stock Option Plan for Independent Contractors effective February 15, 2007, incorporated by reference to Appendix C to Definitive Proxy Statement for the Annual Meeting of Shareholders held February 15, 2007, filed January 16, 2007.
|
||
10.7 | * |
Composite Version of 2003 Raymond James Financial, Inc. Employee Stock Purchase Plan, as amended and restated, incorporated by reference to Appendix B to Definitive Proxy Statement for the Annual Meeting of Shareholders held February 19, 2009, filed on January 12, 2009.
|
|
10.8 | * |
Letter agreement dated February 25, 2009 between us and Paul Reilly, incorporated by reference to Exhibit No. 10.14 as filed with Form 8-K on March 3, 2009.
|
|
10.9.1 | * |
Raymond James Financial, Inc. Senior Management Incentive Plan, incorporated by reference to Appendix A to Definitive Proxy Statements for Annual Meeting of Shareholders held February 20, 2010, filed on January 12, 2010.
|
|
10.9.2 | * |
First Amendment to Raymond James Financial, Inc. Senior Management Incentive Plan, incorporated by reference to Exhibit 10.14.2 as filed with Form 8-K on November 30, 2010.
|
|
10.10 | * |
Agreement dated December 23, 2009, between Raymond James Financial, Inc. and Thomas A. James regarding service as Chairman of the Board after his retirement as Chief Executive Officer, incorporated by reference to Exhibit 10.15 as filed with Form 10-Q on February 9, 2010.
|
Exhibit
Number
|
Description
|
10.11.1*
|
Amended and Restated 2007 Raymond James Financial, Inc. Stock Bonus Plan (as amended and restated effective December 10, 2010), incorporated by reference to Exhibit 10.16.1 as filed with Form 10-Q on February 8, 2011.
|
10.11.2*
|
Form of Notice of Restricted Stock Unit Award and associated Restricted Stock Unit Agreement under Amended and Restated 2007 Raymond James Financial, Inc. Stock Bonus Plan, incorporated by reference to Exhibit 10.16.2 as filed with Form 10-Q on February 8, 2011.
|
10.11.3*
|
Form of Amendment to Restricted Stock Grant Agreements outstanding under 2007 Raymond James Financial, Inc. Stock Bonus Plan, incorporated by reference to Exhibit 10.16.3 as filed with Form 8-K on November 30, 2010.
|
10.12.1*
|
Composite Version of 2005 Raymond James Financial, Inc. Restricted Stock Plan (as amended on December 10, 2010), incorporated by reference to Appendix A to the Definitive Proxy Statement for the Annual Meeting of Shareholders held February 24, 2011, filed on January 18, 2011.
|
10.12.2*
|
Form of Notice of Restricted Stock Unit Award and associated Restricted Stock Unit Agreement (employee/independent contractor) under 2005 Raymond James Financial, Inc. Restricted Stock Plan, as amended, incorporated by reference to Exhibit 10.17.2 as filed with Form 8-K on November 30, 2010.
|
10.12.3*
|
Form of Amendment to Restricted Stock Grant Agreements outstanding under 2005 Raymond James Financial, Inc. Restricted Stock Plan, incorporated by reference to Exhibit 10.17.3 as filed with Form 8-K on November 30, 2010.
|
10.13
|
SEC Order Instituting Administrative and Cease-and-Desist Proceedings dated June 29, 2011, incorporated by reference to Exhibit 10.18 as filed with Form 10-Q on August 9, 2011.
|
10.14
|
State of Florida Office of Financial Regulation Administrative Consent Agreement to Final Order dated June 29, 2011, incorporated by reference to Exhibit 10.19 as filed with Form 10-Q on August 9, 2011.
|
10.15
|
Texas State Securities Board Consent Order dated June 29, 2011, incorporated by reference to Exhibit 10.20 as filed with Form 10-Q on August 9, 2011.
|
10.16
|
Master Promissory Note (Demand Loans), dated September 27, 2011, by Raymond James Financial, Inc., in favor of The Bank of New York Mellon, filed herewith.
|
10.17
|
Uncommitted Line of Credit Agreement, dated as of September 27, 2011, between Raymond James Financial, Inc. and Fifth Third Bank, filed herewith.
|
10.18*
|
Amended and Restated Raymond James Financial Long-Term Incentive Plan dated as of December 31, 2007, filed herewith.
|
11
|
Computation of Earnings per Share is set forth in Note 24 of the Notes to Consolidated Financial Statements in this Form 10-K.
|
12
|
Statement of Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends, filed herewith.
|
14.1
|
Code of Ethics for Senior Financial Officers as amended on August 23, 2007, incorporated by reference to Exhibit 14.1 as filed with Form 10-K on November 28, 2008.
|
14.2
|
Business Ethics and Corporate Policy as amended on November 27, 2007, incorporated by reference to Exhibit 14.2 as filed with Form 10-K on November 29, 2007.
|
21
|
List of Subsidiaries, filed herewith.
|
23
|
Consent of KPMG LLP, filed herewith.
|
31.1
|
Certification by Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), filed herewith.
|
31.2
|
Certification by Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), filed herewith.
|
32
|
Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.
|
99.(i).1
|
Charter of the Audit Committee of the Board of Directors as revised on November 27, 2007, incorporated by reference to Exhibit 99.(i).1 as filed with Form 10-K on November 29 , 2007.
|
99.(i).2
|
Charter of the Corporate Governance, Nominating and Compensation Committee as revised on November 24, 2009, incorporated by reference to Exhibit (99).(i).2 as filed with Form 10-K on November 25, 2009.
|
|
*
|
Indicates a management contract or compensatory plan or arrangement in which a director or named executive officer participates.
|
RAYMOND JAMES FINANCIAL, INC.
|
By /s/ PAUL C. REILLY
|
Paul C. Reilly, Chief Executive Officer
|
Signature
|
Title
|
Date
|
|
/s/ PAUL C. REILLY
|
Chief Executive Officer and Director
|
November 23, 2011
|
|
Paul C. Reilly
|
|||
/s/ THOMAS A. JAMES
|
Executive Chairman and Director
|
November 23, 2011
|
|
Thomas A. James
|
|||
/s/ SHELLEY G. BROADER
|
Director
|
November 23, 2011
|
|
Shelley G. Broader
|
|||
/s/ FRANCIS S. GOLDOLD
|
Vice Chairman and Director
|
November 23, 2011
|
|
Francis S. Godbold
|
|||
/s/ H. WILLIAM HABERMEYER
|
Director
|
November 23, 2011
|
|
H. William Habermeyer
|
|||
/s/ CHET B. HELCK
|
Chief Operating Officer and Director
|
November 23, 2011
|
|
Chet B. Helck
|
|||
/s/ GORDON L. JOHNSON
|
Director
|
November 23, 2011
|
|
Gordon L. Johnson
|
|||
/s/ ROBERT P. SALTZMAN
|
Director
|
November 23, 2011
|
|
Robert P. Saltzman
|
|||
/s/ HARDWICK SIMMONS
|
Director
|
November 23, 2011
|
|
Hardwick Simmons
|
|||
/s/ SUSAN N. STORY
|
Director
|
November 23, 2011
|
|
Susan N. Story
|
|||
/s/ JEFFREY P. JULIEN
|
Executive Vice President – Finance,
|
November 23, 2011
|
|
Jeffrey P. Julien
|
Chief Financial Officer and Treasurer
|
||
/s/ JENNIFER C. ACKART
|
Senior Vice President and Controller
|
November 23, 2011
|
|
Jennifer C. Ackart
|
(Principal Accounting Officer)
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
No Customers Found
Suppliers
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Price
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Owner | Position | Direct Shares | Indirect Shares |
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