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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
|
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THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
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THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
|
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Florida
|
No. 59-1517485
|
|
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(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
|
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
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|||
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Form 10-Q for the quarter ended March 31, 2012
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|||
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INDEX
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|||
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PAGE
|
|||
|
PART I.
|
FINANCIAL INFORMATION
|
||
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Item 1.
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Financial Statements (Unaudited)
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||
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Condensed Consolidated Statements of Financial Condition as of March 31, 2012 and September 30, 2011 (Unaudited)
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3
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||
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Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended March 31, 2012 and March 31, 2011 (Unaudited)
|
4
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||
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Condensed Consolidated Statements of Changes in Shareholders’ Equity for the six months ended March 31, 2012 and March 31, 2011 (Unaudited)
|
5
|
||
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Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2012 and March 31, 2011 (Unaudited)
|
6
|
||
|
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
7
|
||
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Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
50
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
87
|
|
|
Item 4.
|
Controls and Procedures
|
94
|
|
|
PART II.
|
OTHER INFORMATION
|
||
|
Item 1.
|
Legal Proceedings
|
95
|
|
|
Item 1A.
|
Risk Factors
|
95
|
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
96
|
|
|
Item 3.
|
Defaults upon Senior Securities
|
96
|
|
|
Item 5.
|
Other Information
|
96
|
|
|
Item 6.
|
Exhibits
|
97
|
|
|
Signatures
|
99
|
|
March 31, 2012
|
September 30, 2011
|
|||||||
|
($ in thousands)
|
||||||||
|
Assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 2,875,858 | $ | 2,439,695 | ||||
|
Assets segregated pursuant to regulations and other segregated assets
|
3,458,364 | 3,548,683 | ||||||
|
Securities purchased under agreements to resell and other collateralized financings
|
340,158 | 398,247 | ||||||
|
Financial instruments, at fair value:
|
||||||||
|
Trading instruments
|
451,851 | 492,771 | ||||||
|
Available for sale securities
|
576,142 | 520,665 | ||||||
|
Private equity and other investments
|
299,859 | 294,356 | ||||||
|
Receivables:
|
||||||||
|
Brokerage clients, net
|
1,671,078 | 1,716,828 | ||||||
|
Stock borrowed
|
198,294 | 225,561 | ||||||
|
Bank loans, net
|
7,445,828 | 6,547,914 | ||||||
|
Brokers-dealers and clearing organizations
|
92,262 | 96,096 | ||||||
|
Other
|
623,406 | 536,364 | ||||||
|
Deposits with clearing organizations
|
86,417 | 91,482 | ||||||
|
Prepaid expenses and other assets
|
416,250 | 364,264 | ||||||
|
Investments in real estate partnerships held by consolidated variable interest entities
|
306,040 | 320,384 | ||||||
|
Property and equipment, net
|
181,752 | 169,850 | ||||||
|
Deferred income taxes, net
|
179,893 | 171,911 | ||||||
|
Goodwill
|
71,924 | 71,924 | ||||||
|
Total assets
|
$ | 19,275,376 | $ | 18,006,995 | ||||
|
Liabilities and equity:
|
||||||||
|
Trading instruments sold but not yet purchased, at fair value
|
$ | 80,423 | $ | 76,150 | ||||
|
Securities sold under agreements to repurchase
|
137,026 | 188,745 | ||||||
|
Payables:
|
||||||||
|
Brokerage clients
|
4,751,071 | 4,690,414 | ||||||
|
Stock loaned
|
544,373 | 814,589 | ||||||
|
Bank deposits
|
7,913,846 | 7,739,322 | ||||||
|
Brokers-dealers and clearing organizations
|
67,067 | 111,408 | ||||||
|
Trade and other
|
355,076 | 309,723 | ||||||
|
Other borrowings
|
349,600 | - | ||||||
|
Accrued compensation, commissions and benefits
|
364,409 | 452,849 | ||||||
|
Loans payable of consolidated variable interest entities
|
90,950 | 99,982 | ||||||
|
Corporate debt
|
1,205,664 | 611,968 | ||||||
|
Total liabilities
|
15,859,505 | 15,095,150 | ||||||
|
Commitments and contingencies (see Note 14)
|
||||||||
|
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 142,282,732 at
March 31, 2012 and 130,670,086 at September 30, 2011
|
1,396 | 1,271 | ||||||
|
Additional paid-in capital
|
974,893 | 565,135 | ||||||
|
Retained earnings
|
2,222,857 | 2,125,818 | ||||||
|
Treasury stock, at cost; 4,985,142 common shares at March 31, 2012 and 4,263,029 common shares at September 30, 2011
|
(114,608 | ) | (95,000 | ) | ||||
|
Accumulated other comprehensive income
|
3,315 | (9,605 | ) | |||||
|
Total equity attributable to Raymond James Financial, Inc.
|
3,087,853 | 2,587,619 | ||||||
|
Noncontrolling interests
|
328,018 | 324,226 | ||||||
|
Total equity
|
3,415,871 | 2,911,845 | ||||||
|
Total liabilities and equity
|
$ | 19,275,376 | $ | 18,006,995 | ||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||||
|
Revenues:
|
||||||||||||||||
|
Securities commissions and fees
|
$ | 558,527 | $ | 563,710 | $ | 1,069,861 | $ | 1,097,849 | ||||||||
|
Investment banking
|
57,954 | 63,131 | 97,290 | 122,100 | ||||||||||||
|
Investment advisory fees
|
54,269 | 52,643 | 107,774 | 105,053 | ||||||||||||
|
Interest
|
108,852 | 96,811 | 210,948 | 201,197 | ||||||||||||
|
Account and service fees
|
75,855 | 70,904 | 149,865 | 140,189 | ||||||||||||
|
Net trading profits
|
12,979 | 15,246 | 22,322 | 21,568 | ||||||||||||
|
Other
|
21,417 | 4,299 | 30,610 | 9,121 | ||||||||||||
|
Total revenues
|
889,853 | 866,744 | 1,688,670 | 1,697,077 | ||||||||||||
|
Interest expense
|
17,916 | 14,687 | 33,956 | 31,191 | ||||||||||||
|
Net revenues
|
871,937 | 852,057 | 1,654,714 | 1,665,886 | ||||||||||||
|
Non-interest expenses:
|
||||||||||||||||
|
Compensation, commissions and benefits
|
596,891 | 579,587 | 1,138,513 | 1,131,471 | ||||||||||||
|
Communications and information processing
|
43,741 | 36,380 | 81,308 | 67,525 | ||||||||||||
|
Occupancy and equipment costs
|
27,231 | 26,773 | 53,168 | 53,002 | ||||||||||||
|
Clearance and floor brokerage
|
9,070 | 9,447 | 16,524 | 19,364 | ||||||||||||
|
Business development
|
27,382 | 22,820 | 55,221 | 46,765 | ||||||||||||
|
Investment sub-advisory fees
|
7,143 | 7,867 | 13,705 | 14,771 | ||||||||||||
|
Bank loan loss provision
|
5,154 | 8,637 | 12,610 | 19,869 | ||||||||||||
|
Acquisition related expenses
|
19,604 | - | 19,604 | - | ||||||||||||
|
Other
|
27,819 | 36,308 | 51,511 | 62,135 | ||||||||||||
|
Total non-interest expenses
|
764,035 | 727,819 | 1,442,164 | 1,414,902 | ||||||||||||
|
Income including noncontrolling interests and before provision for income taxes
|
107,902 | 124,238 | 212,550 | 250,984 | ||||||||||||
|
Provision for income taxes
|
42,628 | 45,320 | 86,154 | 94,111 | ||||||||||||
|
Net income including noncontrolling interests
|
65,274 | 78,918 | 126,396 | 156,873 | ||||||||||||
|
Net loss attributable to noncontrolling interests
|
(3,595 | ) | (1,999 | ) | (9,798 | ) | (5,767 | ) | ||||||||
|
Net income attributable to Raymond James Financial, Inc.
|
$ | 68,869 | $ | 80,917 | $ | 136,194 | $ | 162,640 | ||||||||
|
Net income per common share – basic
|
$ | 0.52 | $ | 0.64 | $ | 1.05 | $ | 1.29 | ||||||||
|
Net income per common share – diluted
|
$ | 0.52 | $ | 0.64 | $ | 1.05 | $ | 1.29 | ||||||||
|
Weighted-average common shares outstanding – basic
|
129,353 | 122,396 | 126,201 | 121,752 | ||||||||||||
|
Weighted-average common and common equivalent shares outstanding – diluted
|
130,644 | 123,265 | 126,989 | 122,238 | ||||||||||||
|
Net income attributable to Raymond James Financial, Inc.
|
$ | 68,869 | $ | 80,917 | $ | 136,194 | $ | 162,640 | ||||||||
|
Other comprehensive income, net of tax:
(1)
|
||||||||||||||||
|
Change in unrealized (loss) gain on available for sale securities and non-credit portion of other-than-temporary impairment losses
|
11,236 | 2,024 | 5,575 | 6,921 | ||||||||||||
|
Change in currency translations
|
2,525 | 3,703 | 7,345 | 9,207 | ||||||||||||
|
Total comprehensive income
|
$ | 82,630 | $ | 86,644 | $ | 149,114 | $ | 178,768 | ||||||||
|
Other-than-temporary impairment:
|
||||||||||||||||
|
Total other-than-temporary impairment, net
|
$ | 10,853 | $ | (2,163 | ) | $ | 6,666 | $ | (1,384 | ) | ||||||
|
Portion of recoveries recognized in other comprehensive income (before taxes)
|
(12,190 | ) | (1,056 | ) | (10,099 | ) | (4,014 | ) | ||||||||
|
Net impairment losses recognized in other revenue
|
$ | (1,337 | ) | $ | (3,219 | ) | $ | (3,433 | ) | $ | (5,398 | ) | ||||
|
(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.
|
|
Six months ended March 31,
|
||||||||
|
2012
|
2011
|
|||||||
|
(in thousands, except per share amounts)
|
||||||||
|
Common stock, par value $.01 per share:
|
||||||||
|
Balance, beginning of year
|
$ | 1,271 | $ | 1,244 | ||||
|
Issuance of shares, registered public offering
|
111 | (1) | - | |||||
|
Other issuances
|
14 | 20 | (2) | |||||
|
Balance, end of period
|
1,396 | 1,264 | ||||||
|
Shares exchangeable into common stock:
|
||||||||
|
Balance, beginning of year
|
- | 3,119 | ||||||
|
Exchanged
|
- | (3,119 | ) (2) | |||||
|
Balance, end of period
|
- | - | ||||||
|
Additional paid-in capital:
|
||||||||
|
Balance, beginning of year
|
565,135 | 476,359 | ||||||
|
Issuance of shares, registered public offering
|
362,121 | (1) | - | |||||
|
Employee stock purchases
|
5,567 | 4,486 | ||||||
|
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
11,783 | 30,343 | ||||||
|
Restricted stock, stock option and restricted stock unit expense
|
28,426 | 23,960 | ||||||
|
Excess tax benefit (deficiency) from share-based payments
|
1,640 | (236 | ) | |||||
|
Other
|
221 | 3,107 | (2) | |||||
|
Balance, end of period
|
974,893 | 538,019 | ||||||
|
Retained earnings:
|
||||||||
|
Balance, beginning of year
|
2,125,818 | 1,909,865 | ||||||
|
Net income attributable to Raymond James Financial, Inc.
|
136,194 | 162,640 | ||||||
|
Cash dividends declared
|
(34,318 | ) | (32,868 | ) | ||||
|
Other
|
(4,837 | ) | 4,370 | |||||
|
Balance, end of period
|
2,222,857 | 2,044,007 | ||||||
|
Treasury stock:
|
||||||||
|
Balance, beginning of year
|
(95,000 | ) | (81,574 | ) | ||||
|
Purchases/surrenders
|
(18,900 | ) | (6,659 | ) | ||||
|
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
(708 | ) | 2,802 | |||||
|
Balance, end of period
|
(114,608 | ) | (85,431 | ) | ||||
|
Accumulated other comprehensive income:
(3)
|
||||||||
|
Balance, beginning of year
|
(9,605 | ) | (6,197 | ) | ||||
|
Net unrealized (loss) gain on available for sale securities and non-credit portion of other-than-temporary impairment losses
(4)
|
5,575 | 6,921 | ||||||
|
Net change in currency transactions
|
7,345 | 9,207 | ||||||
|
Balance, end of period
|
3,315 | 9,931 | ||||||
|
Total equity attributable to Raymond James Financial, Inc.
|
$ | 3,087,853 | $ | 2,507,790 | ||||
|
Noncontrolling interests:
|
||||||||
|
Balance, beginning of year
|
$ | 324,226 | $ | 294,052 | ||||
|
Net loss attributable to noncontrolling interests
|
(9,798 | ) | (5,767 | ) | ||||
|
Capital contributions
|
27,383 | 18,052 | ||||||
|
Distributions
|
(3,539 | ) | (3,225 | ) | ||||
|
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
|
(10,254 | ) | 660 | |||||
|
Balance, end of period
|
328,018 | 311,618 | ||||||
|
Total equity
|
$ | 3,415,871 | $ | 2,819,408 | ||||
|
(1)
|
During the six months ended March 31, 2012, in a registered public offering, 11,075,000 common shares were issued generating approximately $362 million in net proceeds (after consideration of the underwriting discount and direct expenses of the offering).
|
|
(2)
|
During the six months ended March 31, 2011, approximately 243,000 exchangeable shares were exchanged for common stock on a one-for-one basis.
|
|
(3)
|
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.
|
|
(4)
|
Net of tax.
|
|
Six months ended March 31,
|
||||||||
|
2012
|
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Cash flows from operating activities:
|
||||||||
|
Net income attributable to Raymond James Financial, Inc.
|
$ | 136,194 | $ | 162,640 | ||||
|
Net loss attributable to noncontrolling interests
|
(9,798 | ) | (5,767 | ) | ||||
|
Net income including noncontrolling interests
|
126,396 | 156,873 | ||||||
|
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
20,053 | 19,802 | ||||||
|
Deferred income taxes
|
(10,033 | ) | (25,848 | ) | ||||
|
Premium and discount amortization on available for sale securities and unrealized/realized gain on other investments
|
(13,425 | ) | (1,669 | ) | ||||
|
Provisions for loan losses, legal proceedings, bad debts and other accruals
|
9,638 | 30,020 | ||||||
|
Share-based compensation expense
|
30,340 | 27,041 | ||||||
|
Other
|
(1,310 | ) | (1,317 | ) | ||||
|
Net change in:
|
||||||||
|
Assets segregated pursuant to regulations and other segregated assets
|
90,319 | 1,025,583 | ||||||
|
Securities purchased under agreements to resell and other collateralized financings, net of securities sold under agreements to repurchase
|
6,370 | (216,778 | ) | |||||
|
Stock loaned, net of stock borrowed
|
(242,949 | ) | (136,296 | ) | ||||
|
Brokerage client receivables and other accounts receivable, net
|
(18,653 | ) | (157,246 | ) | ||||
|
Trading instruments, net
|
44,653 | 86,277 | ||||||
|
Prepaid expenses and other assets
|
27,713 | 11,120 | ||||||
|
Brokerage client payables and other accounts payable
|
83,022 | 390,655 | ||||||
|
Accrued compensation, commissions and benefits
|
(90,531 | ) | (54,660 | ) | ||||
|
Purchase and origination of loans held for sale, net of proceeds from sale of securitizations and loans held for sale
|
9,677 | (19,511 | ) | |||||
|
Excess tax benefits from stock-based payment arrangements
|
(2,210 | ) | (1,069 | ) | ||||
|
Net cash provided by operating activities
|
69,070 | 1,132,977 | ||||||
|
Cash flows from investing activities:
|
||||||||
|
Additions to property and equipment
|
(31,182 | ) | (15,974 | ) | ||||
|
(Increase) decrease in loans, net
|
(961,708 | ) | 24,523 | |||||
|
(Purchases) redemptions of Federal Home Loan Bank stock, net
|
(1,168 | ) | 4,777 | |||||
|
(Purchases) sales of private equity and other investments, net
|
(8,361 | ) | 14,328 | |||||
|
Purchases of available for sale securities
|
(111,884 | ) | (1,832 | ) | ||||
|
Available for sale securities maturations, repayments and redemptions
|
61,380 | 66,615 | ||||||
|
Proceeds from sales of available for sale securities
|
- | 11,444 | ||||||
|
Investments in real estate partnerships held by consolidated variable interest entities, net of other investing activity
|
330 | (2,326 | ) | |||||
|
Net cash (used in) provided by investing activities
|
(1,052,593 | ) | 101,555 | |||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from (repayments of) borrowed funds, net
|
932,079 | (2,558,602 | ) | |||||
|
Proceeds from issuance of shares in registered public offering
|
362,232 | - | ||||||
|
Repayments of borrowings by consolidated variable interest entities which are real estate partnerships
|
(11,600 | ) | (11,859 | ) | ||||
|
Proceeds from capital contributed to and borrowings of consolidated variable interest entities which are real estate partnerships
|
101 | 17,528 | ||||||
|
Purchase of additional equity interest in subsidiary
|
(4,017 | ) | - | |||||
|
Exercise of stock options and employee stock purchases
|
16,144 | 37,202 | ||||||
|
Increase (decrease) in bank deposits
|
174,524 | (369,135 | ) | |||||
|
Purchase of treasury stock
|
(19,222 | ) | (6,916 | ) | ||||
|
Dividends on common stock
|
(32,878 | ) | (32,868 | ) | ||||
|
Excess tax benefits from share-based payment arrangements
|
2,210 | 1,069 | ||||||
|
Net cash provided by (used in) financing activities
|
1,419,573 | (2,923,581 | ) | |||||
|
Currency adjustment:
|
||||||||
|
Effect of exchange rate changes on cash
|
113 | 978 | ||||||
|
Net increase (decrease) in cash and cash equivalents
|
436,163 | (1,688,071 | ) | |||||
|
Cash and cash equivalents at beginning of year
|
2,439,695 | 2,943,239 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 2,875,858 | $ | 1,255,168 | ||||
|
Supplemental disclosures of cash flow information:
|
||||||||
|
Cash paid for interest
|
$ | 36,311 | $ | 32,565 | ||||
|
Cash paid for income taxes
|
$ | 110,488 | $ | 118,750 | ||||
|
Non-cash transfers of loans to other real estate owned
|
$ | 10,954 | $ | 9,936 | ||||
|
For the three and six
month periods ended
|
||||
|
March 31, 2012
|
||||
|
(in thousands)
|
||||
|
Financial advisory fees
|
$ | 7,020 | ||
|
Acquisition bridge financing facility fees
|
5,684 | |||
|
Severance
|
3,183 | |||
|
Legal
|
2,495 | |||
|
Travel
|
349 | |||
|
Other
|
873 | |||
|
Total acquisition related expenses
|
$ | 19,604 | ||
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Cash and cash equivalents:
|
||||||||
|
Cash in banks
|
$ | 2,870,287 | $ | 2,438,249 | ||||
|
Money market investments
|
5,571 | 1,446 | ||||||
|
Total cash and cash equivalents
(1)
|
2,875,858 | 2,439,695 | ||||||
|
Cash and securities segregated pursuant to federal regulations and other segregated assets
(2)
|
3,458,364 | 3,548,683 | ||||||
|
Deposits with clearing organizations
(3)
|
86,417 | 91,482 | ||||||
| $ | 6,420,639 | $ | 6,079,860 | |||||
|
(1)
|
The total amount presented includes $1.6 billion and $471 million of cash and cash equivalents as of March 31, 2012 and September 30, 2011, respectively, which are either on deposit at our wholly owned bank subsidiary Raymond James Bank, FSB (effective February 1, 2012, Raymond James Bank, N.A.) (“RJ Bank”) or are otherwise invested by one of our subsidiaries on behalf of RJF. The $1.6 billion at March 31, 2012 includes proceeds from the completion of certain equity and debt financing transactions related to the acquisition of Morgan Keegan which closed on April 2, 2012. See Note 2 for more information.
|
|
(2)
|
Consists of cash maintained in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934. Raymond James & Associates, Inc., as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of its clients. Additionally, Raymond James Ltd. (“RJ Ltd.”) is required to hold client Registered Retirement Savings Plan funds in trust.
|
|
(3)
|
Consists of deposits of cash and cash equivalents or other short-term securities held by other clearing organizations or exchanges.
|
|
March 31, 2012
|
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
March 31, 2012
|
|||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
|
Assets at fair value on a recurring basis
:
|
||||||||||||||||||||
|
Trading instruments:
|
||||||||||||||||||||
|
Municipal and provincial obligations
|
$ | 7 | $ | 150,273 | $ | - | $ | - | $ | 150,280 | ||||||||||
|
Corporate obligations
|
6,457 | 20,463 | - | - | 26,920 | |||||||||||||||
|
Government and agency obligations
|
24,316 | 23,206 | - | - | 47,522 | |||||||||||||||
|
Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”)
|
51 | 128,513 | - | - | 128,564 | |||||||||||||||
|
Non-agency CMOs and asset-backed securities (“ABS”)
|
- | 30,319 | 34 | - | 30,353 | |||||||||||||||
|
Total debt securities
|
30,831 | 352,774 | 34 | - | 383,639 | |||||||||||||||
|
Derivative contracts
|
- | 117,362 | - | (81,522 | ) | 35,840 | ||||||||||||||
|
Equity securities
|
20,031 | 3,316 | - | - | 23,347 | |||||||||||||||
|
Other securities
|
689 | 1,718 | 6,618 | - | 9,025 | |||||||||||||||
|
Total trading instruments
|
51,551 | 475,170 | 6,652 | (81,522 | ) | 451,851 | ||||||||||||||
|
Available for sale securities:
|
||||||||||||||||||||
|
Agency MBS and CMOs
|
- | 256,670 | - | - | 256,670 | |||||||||||||||
|
Non-agency CMOs
|
- | 144,825 | 633 | - | 145,458 | |||||||||||||||
|
Other securities
|
13 | - | - | - | 13 | |||||||||||||||
|
Auction rate securities (“ARS”):
|
||||||||||||||||||||
|
Municipals
|
- | - | 71,909 | (3) | - | 71,909 | ||||||||||||||
|
Preferred securities
|
- | - | 102,092 | - | 102,092 | |||||||||||||||
|
Total available for sale securities
|
13 | 401,495 | 174,634 | - | 576,142 | |||||||||||||||
|
Private equity and other investments:
|
||||||||||||||||||||
|
Private equity investments
|
- | - | 181,446 | (4) | - | 181,446 | ||||||||||||||
|
Other investments
|
116,154 | 66 | 2,193 | - | 118,413 | |||||||||||||||
|
Total private equity and other investments
|
116,154 | 66 | 183,639 | - | 299,859 | |||||||||||||||
|
Other assets
|
- | 82 | - | - | 82 | |||||||||||||||
|
Total assets at fair value on a recurring basis
|
$ | 167,718 | $ | 876,813 | $ | 364,925 | $ | (81,522 | ) | $ | 1,327,934 | |||||||||
|
Assets at fair value on a nonrecurring basis:
|
||||||||||||||||||||
|
Bank loans, net:
|
||||||||||||||||||||
|
Impaired loans
(5)
|
$ | - | $ | 55,142 | $ | 34,419 | $ | - | $ | 89,561 | ||||||||||
|
Loans held for sale
(6)
|
- | 57,655 | - | - | 57,655 | |||||||||||||||
|
Total bank loans, net
|
- | 112,797 | 34,419 | - | 147,216 | |||||||||||||||
|
Other Real Estate Owned (“OREO”)
(7)
|
- | 4,649 | - | - | 4,649 | |||||||||||||||
|
Total assets at fair value on a nonrecurring basis
(8)
|
$ | - | $ | 117,446 | $ | 34,419 | - | $ | 151,865 | |||||||||||
|
(continued on next page)
|
||||||||||||||||||||
|
March 31, 2012
|
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
March 31, 2012
|
|||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
|
(continued from previous page)
|
||||||||||||||||||||
|
Liabilities at fair value on a recurring basis
:
|
||||||||||||||||||||
|
Trading instruments sold but not yet purchased:
|
||||||||||||||||||||
|
Municipal and provincial obligations
|
$ | - | $ | 357 | $ | - | $ | - | $ | 357 | ||||||||||
|
Corporate obligations
|
- | 505 | - | - | 505 | |||||||||||||||
|
Government obligations
|
66,030 | - | - | - | 66,030 | |||||||||||||||
|
Agency MBS and CMOs
|
142 | - | - | - | 142 | |||||||||||||||
|
Total debt securities
|
66,172 | 862 | - | - | 67,034 | |||||||||||||||
|
Derivative contracts
|
- | 101,096 | - | (98,030 | ) | 3,066 | ||||||||||||||
|
Equity securities
|
10,243 | 80 | - | - | 10,323 | |||||||||||||||
|
Total trading instruments sold but not yet purchased
|
76,415 | 102,038 | - | (98,030 | ) | 80,423 | ||||||||||||||
|
Other liabilities
|
- | 430 | 39 | - | 469 | |||||||||||||||
|
Total liabilities at fair value on a recurring basis
|
$ | 76,415 | $ | 102,468 | $ | 39 | $ | (98,030 | ) | $ | 80,892 | |||||||||
|
(1)
|
We had no transfers of financial instruments from Level 1 to Level 2 during the three or six month periods ended March 31, 2012. We had $436 thousand in transfers of financial instruments from Level 2 to Level 1 during the three and six month period ended March 31, 2012. The transfers were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. 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 $45.8 million of Jefferson County, Alabama Limited Obligation School Warrants ARS and $19.1 million of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS.
|
|
(4)
|
Includes $99.8 million in private equity investments of which the weighted-average portion we own is approximately 22%. Effectively, the economics associated with the portion of this investment we do not own becomes a component of noncontrolling interests on our Condensed Consolidated Statements of Financial Condition, and amounted to approximately $77.9 million of that total as of March 31, 2012.
|
|
(5)
|
There was a $55 million transfer of impaired loans from Level 3 to Level 2 during the three month period ended March 31, 2012 due to the increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our analysis indicates that comparative sales data is a reasonable estimate of fair value, therefore, more consideration was given to this observable input.
|
|
(6)
|
Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost.
|
|
(7)
|
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 Condensed Consolidated Statements of Financial Condition is net of the estimated selling costs.
|
|
(8)
|
The adjustment to fair value of the nonrecurring fair value measures for the six months ended March 31, 2012 resulted in $10 million in additional provision for loan losses, as well as $790 thousand in other losses during the six month period.
|
|
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 at fair value on a recurring basis
:
|
||||||||||||||||||||
|
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 | (3) | - | 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 | (4) | - | 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 assets at fair value on a recurring basis
|
$ | 168,951 | $ | 861,889 | $ | 368,211 | $ | (88,563 | ) | $ | 1,310,488 | |||||||||
|
Assets at fair value on a nonrecurring basis:
|
||||||||||||||||||||
|
Bank loans, net
(5)
|
$ | - | $ | 39,621 | 111,941 | (7) | $ | - | $ | 151,562 | ||||||||||
|
OREO
(6)
|
- | 11,278 | - | - | 11,278 | |||||||||||||||
|
Total assets at fair value on a nonrecurring basis
|
$ | - | $ | 50,899 | $ | 111,941 | $ | - | $ | 162,840 | ||||||||||
|
Liabilities at fair value on a recurring basis
:
|
||||||||||||||||||||
|
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 | |||||||||||||||
|
Total trading instruments sold but not yet purchased
|
63,119 | 118,900 | - | (105,869 | ) | 76,150 | ||||||||||||||
|
Other liabilities
|
- | 20 | 40 | - | 60 | |||||||||||||||
|
Total liabilities at fair value on a recurring basis
|
$ | 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 period 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 $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.
|
|
(4)
|
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 Condensed Consolidated Statements of Financial Condition, and amounted to approximately $70 million of that total as of September 30, 2011.
|
|
(5)
|
Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost.
|
|
(6)
|
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 Condensed Consolidated Statements of Financial Condition is net of the estimated selling costs.
|
|
(7)
|
At September 30, 2011, Level 3 assets include residential first mortgage nonaccrual loans for which a charge-off had been recorded. See Note 7, pages 110 – 116 of our 2011 Form 10-K.
|
|
Three months ended March 31, 2012
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
|
Other
securities
|
Non-
agency
CMOs
|
ARS –
municipals
|
ARS -
Preferred
securities
|
Private
equity
investments
|
Other
investments
|
Other
liabilities
|
|||||||||||||||||||||||||||||||
|
Fair value
December 31, 2011
|
$ | 135 | $ | 37 | $ | 179 | $ | 5,635 | $ | 741 | $ | 74,707 | $ | 98,537 | $ | 162,074 | $ | 2,040 | $ | (29 | ) | |||||||||||||||||||
|
Total gains (losses) for the period:
|
||||||||||||||||||||||||||||||||||||||||
|
Included in earnings
|
9 | - | 15 | (218 | ) | (138 | ) | - | - | 8,026 | (1) | 154 | (10 | ) | ||||||||||||||||||||||||||
|
Included in other comprehensive income
|
- | - | - | - | 39 | (2,798 | ) | 3,555 | - | - | - | |||||||||||||||||||||||||||||
|
Purchases and contributions
|
- | - | - | 5,189 | - | - | - | 12,895 | - | - | ||||||||||||||||||||||||||||||
|
Sales
|
- | - | (16 | ) | (3,494 | ) | - | - | - | - | (1 | ) | - | |||||||||||||||||||||||||||
|
Redemptions by issuer
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
|
Distributions
|
- | (3 | ) | - | (494 | ) | (9 | ) | - | - | (1,549 | ) | - | - | ||||||||||||||||||||||||||
|
Transfers:
|
||||||||||||||||||||||||||||||||||||||||
|
Into Level 3
|
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
|
Out of Level 3
(2)
|
(144 | ) | - | (178 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
|
Fair value
March 31, 2012
|
$ | - | $ | 34 | $ | - | $ | 6,618 | $ | 633 | $ | 71,909 | $ | 102,092 | $ | 181,446 | $ | 2,193 | $ | (39 | ) | |||||||||||||||||||
|
Change in unrealized gains
(losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period
|
$ | - | $ | 64 | $ | - | $ | (218 | ) | $ | (138 | ) | $ | (2,798 | ) | $ | 3,555 | $ | 8,026 | (1) | $ | 117 | $ | - | ||||||||||||||||
|
(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 $2.8 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 $5.2 million.
|
|
(2)
|
The transfers out of Level 3 were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
|
Six months ended March 31, 2012
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
|
Other
securities
|
Non-
agency
CMOs
|
ARS –
municipals
|
ARS -
Preferred
securities
|
Private
equity
investments
|
Other
investments
|
Other
liabilities
|
|||||||||||||||||||||||||||||||
|
Fair value
September 30, 2011
|
$ | 375 | $ | 50 | $ | 15 | $ | - | $ | 851 | $ | 79,524 | $ | 116,524 | $ | 168,785 | $ | 2,087 | $ | (40 | ) | |||||||||||||||||||
|
Total gains (losses) for the period:
|
||||||||||||||||||||||||||||||||||||||||
|
Included in earnings
|
89 | (4 | ) | 11 | (1,160 | ) | (138 | ) | (540 | ) | (75 | ) | 8,030 | (1) | 107 | 1 | ||||||||||||||||||||||||
|
Included in other comprehensive income
|
- | - | - | - | (54 | ) | (7,468 | ) | 2,661 | - | - | - | ||||||||||||||||||||||||||||
|
Purchases and contributions
|
- | - | 16 | 5,189 | - | 475 | 475 | 15,262 | - | - | ||||||||||||||||||||||||||||||
|
Sales
|
(320 | ) | - | (16 | ) | (3,494 | ) | - | - | - | - | (1 | ) | - | ||||||||||||||||||||||||||
|
Redemptions by issuer
|
- | - | - | - | - | (125 | ) | (17,450 | ) | - | - | - | ||||||||||||||||||||||||||||
|
Distributions
|
- | (12 | ) | - | (494 | ) | (26 | ) | - | - | (10,631 | ) | - | - | ||||||||||||||||||||||||||
|
Transfers:
|
||||||||||||||||||||||||||||||||||||||||
|
Into Level 3
|
- | - | 152 | 6,577 | (2) | - | 43 | - | - | - | - | |||||||||||||||||||||||||||||
|
Out of Level 3
(3)
|
(144 | ) | - | (178 | ) | - | - | - | (43 | ) | - | - | - | |||||||||||||||||||||||||||
|
Fair value
March 31, 2012
|
$ | - | $ | 34 | $ | - | $ | 6,618 | $ | 633 | $ | 71,909 | $ | 102,092 | $ | 181,446 | $ | 2,193 | $ | (39 | ) | |||||||||||||||||||
|
Change in unrealized gains
(losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period
|
$ | - | $ | 64 | $ | - | $ | (218 | ) | $ | (138 | ) | $ | (7,930 | ) | $ | 2,661 | $ | 8,030 | (1) | $ | 52 | $ | - | ||||||||||||||||
|
(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 $2.8 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 $5.2 million.
|
|
(2)
|
During the six month period ended March 31, 2012, we transferred certain securities which were previously included in Level 2, non-agency CMOs and ABS.
|
|
(3)
|
The transfers out of Level 3 were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
|
Three months ended March 31, 2011
Level 3 assets at fair value
(in thousands)
|
||||||||||||||||||||||||||||||||
|
Financial assets
|
Financial
liabilities
|
|||||||||||||||||||||||||||||||
|
Trading instruments
|
Available
for sale
securities
|
Private equity and other
investments
|
Prepaid
expenses
and other
assets
|
Payables-trade
and other
|
||||||||||||||||||||||||||||
|
Municipal
&
provincial
obligations
|
Non-
agency
CMOs
& ABS
|
Equity
securities
|
Non-
agency
CMOs
|
Private
equity
investments
|
Other
investments
|
Other
assets
|
Other
liabilities
|
|||||||||||||||||||||||||
|
Fair value
December 31, 2010
|
$ | 6,076 | $ | 3,643 | $ | 3,225 | $ | 1,098 | $ | 159,586 | $ | 45 | $ | 25 | $ | (46 | ) | |||||||||||||||
|
Total gains (losses) for the period:
|
||||||||||||||||||||||||||||||||
|
Included in earnings
|
(388 | ) | 877 | - | 121 | (478 | ) | - | - | - | ||||||||||||||||||||||
|
Included in other comprehensive income
|
- | - | - | (101 | ) | - | - | - | - | |||||||||||||||||||||||
|
Purchases, issues & settlements, net
|
- | (599 | ) | (1,300 | ) | (318 | ) | (2,062 | ) | - | - | - | ||||||||||||||||||||
|
Transfers:
|
||||||||||||||||||||||||||||||||
|
Into Level 3
|
- | - | - | - | - | - | - | (3 | ) | |||||||||||||||||||||||
|
Out of Level 3
|
- | - | - | - | - | - | - | 7 | ||||||||||||||||||||||||
|
Fair value
March 31, 2011
|
$ | 5,688 | $ | 3,921 | $ | 1,925 | $ | 800 | $ | 157,046 | $ | 45 | $ | 25 | $ | (42 | ) | |||||||||||||||
|
Change in unrealized gains
(losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period
|
$ | (388 | ) | $ | 1,092 | $ | - | $ | (81 | ) | $ | (3,293 | ) | $ | - | $ | - | $ | - | |||||||||||||
|
Six months ended March 31, 2011
Level 3 assets at fair value
(in thousands)
|
||||||||||||||||||||||||||||||||
|
Financial assets
|
Financial
liabilities
|
|||||||||||||||||||||||||||||||
|
Trading instruments
|
Available
for sale
securities
|
Private equity and other
investments
|
Prepaid
expenses
and other
assets
|
Payables-trade
and other
|
||||||||||||||||||||||||||||
|
Municipal
&
provincial
obligations
|
Non-
agency
CMOs
& ABS
|
Equity
securities
|
Non-
agency
CMOs
|
Private
equity
investments
|
Other
investments
|
Other
assets
|
Other
liabilities
|
|||||||||||||||||||||||||
|
Fair value
September 30, 2010
|
$ | 6,275 | $ | 3,930 | $ | 3,025 | $ | 1,011 | $ | 161,230 | $ | 45 | $ | - | $ | (46 | ) | |||||||||||||||
|
Total gains (losses) for the period:
|
||||||||||||||||||||||||||||||||
|
Included in earnings
|
(582 | ) | 740 | - | 121 | (403 | ) | - | - | - | ||||||||||||||||||||||
|
Included in other comprehensive income
|
- | - | - | 66 | - | - | - | - | ||||||||||||||||||||||||
|
Purchases, issues & settlements, net
|
(5 | ) | (749 | ) | (1,100 | ) | (398 | ) | (3,781 | ) | - | - | - | |||||||||||||||||||
|
Transfers:
|
||||||||||||||||||||||||||||||||
|
Into Level 3
|
- | - | - | - | - | - | 25 | (3 | ) | |||||||||||||||||||||||
|
Out of Level 3
|
- | - | - | - | - | - | - | 7 | ||||||||||||||||||||||||
|
Fair value
March 31, 2011
|
$ | 5,688 | $ | 3,921 | $ | 1,925 | $ | 800 | $ | 157,046 | $ | 45 | $ | 25 | $ | (42 | ) | |||||||||||||||
|
Change in unrealized gains
(losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period
|
$ | (777 | ) | $ | 1,144 | $ | - | $ | (81 | ) | $ | (3,298 | ) | $ | - | $ | - | $ | - | |||||||||||||
|
For the three months ended March 31, 2012
|
Net trading
profits
|
Other
revenues
|
||||||
|
(in thousands)
|
||||||||
|
Total (losses) gains for the period included in revenues
|
$ | (194 | ) | $ | 8,032 | |||
|
Change in unrealized (losses) gains for the period for assets held at the end of the reporting period
|
(154 | ) | 8,762 | |||||
|
For the six months ended March 31, 2012
|
Net trading
profits
|
Other
revenues
|
||||||
|
(in thousands)
|
||||||||
|
Total (losses) gains for the period included in revenues
|
$ | (1,064 | ) | $ | 7,385 | |||
|
Change in unrealized (losses) gains for the period for assets held at the end of the reporting period
|
(154 | ) | 2,675 | |||||
|
For the three months ended March 31, 2011
|
Net trading
profits
|
Other
revenues
|
||||||
|
(in thousands)
|
||||||||
|
Total gains (losses) for the period included in revenues
|
$ | 489 | $ | (357 | ) | |||
|
Change in unrealized gains (losses) for the period for assets held at the end of the reporting period
|
705 | (3,374 | ) | |||||
|
For the six months ended March 31, 2011
|
Net trading
profits
|
Other
revenues
|
||||||
|
(in thousands)
|
||||||||
|
Total gains (losses) for the period included in revenues
|
$ | 158 | $ | (282 | ) | |||
|
Change in unrealized gains (losses) for the period for assets held at the end of the reporting period
|
367 | (3,379 | ) | |||||
|
Level 3 financial instrument
|
Fair value at
March 31, 2012
(in thousands)
|
Valuation technique(s)
|
Unobservable input
|
Range (weighted-average)
|
||||||
|
Recurring measurements:
|
||||||||||
|
Available for sale securities:
|
||||||||||
|
ARS:
|
||||||||||
|
Municipals
|
$ | 45,822 |
Probability weighted
internal scenario model:
|
|||||||
|
Scenario 1 - Recent trades
|
Observed trades (in inactive markets)
of in-portfolio securities as well as
observed trades (in active markets) of
other comparable securities
|
57% of par - 104% of par
(59% of par)
|
||||||||
|
Scenario 2 – scenario of potential outcomes
|
Par value of scenario based
possible outcomes
(a)
|
70% of par- 93% of par
(83% of par)
|
||||||||
|
Weighting assigned to weighted
average
of scenario 1
|
50%-60% (55%) | |||||||||
|
Weighting assigned to weighted
average of scenario 2
|
40%-50% (45%) | |||||||||
| $ | 19,064 |
Recent trades
|
Observed trades (in inactive markets)
of in-portfolio securities as well as
observed trades of
other comparable securities
(in inactive markets)
|
51% of par - 107% of par
(64% of par)
|
||||||
|
Comparability adjustments
(b)
|
+/-5% of par (+/-5% of par)
|
|||||||||
| $ | 7,023 |
Discounted cash flow
|
Average discount rate
(c)
|
3.17% - 7.15% (4.68%) | ||||||
|
Average interest rates applicable to future interest income on the securities
(d)
|
0.67% - 6.14% (4.30%) | |||||||||
|
Prepayment year
(e)
|
2014 - 2030 (2019) | |||||||||
|
Preferred securities
|
$ | 102,092 |
Discounted cash flow
|
Average discount rate
(c)
|
4.32% - 5.59% (5.09%) | |||||
|
Average interest rates applicable to future interest income on the securities
(d)
|
2.34% - 3.52% (3.17%) | |||||||||
|
Prepayment year
(e)
|
2012 - 2021 (2018) | |||||||||
|
Private equity investments:
|
$ | 84,927 |
Market comparable
companies
|
EBITDA multiple
(f)
Projected EBITDA growth
(g)
|
5.75 – 6 (5.88)
7.9% - 14.5% (11.2%)
|
|||||
| $ | 37,348 |
Discounted cash flow
|
Discount rate
|
15% - 15% (15%) | ||||||
|
Terminal growth rate of cash flows
|
3% - 3% (3%) | |||||||||
|
Terminal year
|
2015 - 2015 (2015) | |||||||||
|
|
$ | 59,171 |
Transaction price or other
investment-
specific events
(h)
|
Not meaningful
(h)
|
Not meaningful
(h)
|
|||||
|
Nonrecurring measurements:
|
||||||||||
|
Impaired loans : residential
|
$ | 22,149 |
Discounted cash flow
|
Prepayment rate
|
0 yrs. – 12 yrs. (2.03 yrs.)
|
|||||
|
Impaired loans : corporate
|
$ | 12,270 |
Appraisal or discounted
cash flow
(i)
|
Not meaningful
(i)
|
Not meaningful
(i)
|
|||||
|
(a)
|
Management utilizes an internal model which projects the outcome of various scenarios which management believes market participants are evaluating as likely possible outcomes impacting the value of the security. Values presented represent the range of fair values associated with the various potential scenarios.
|
|
(b)
|
Management estimates that market participants apply this range of either discount or premium, as applicable, to the limited observable trade data in order to assess the value of the securities within this portfolio segment.
|
|
(c)
|
Represents amounts used when we have determined that market participants would take these discounts into account when pricing the investments.
|
|
(d)
|
Future interest rates are projected based upon a forward interest rate curve, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment.
|
|
(e)
|
Assumed year of at least a partial redemption of the outstanding security by the issuer.
|
|
(f)
|
Represents amounts used when we have determined that market participants would use such multiples when pricing the investments.
|
|
(g)
|
Represents the projected growth in earnings before interest, taxes, depreciation and amortization (“EBITDA”) utilized in the valuation as compared to the prior periods reported EBITDA.
|
|
(h)
|
Certain direct private equity investments are valued initially at the transaction price until significant transactions or developments indicate that a change in the carrying values of these investments is appropriate.
|
|
(i)
|
The valuation techniques used for the impaired corporate loan portfolio as of March 31, 2012 were appraisals less selling costs for the collateral dependent loans, and discounted cash flows for the one remaining impaired loan that is not collateral dependent.
|
|
March 31, 2012
|
Quoted prices
in active
markets for
identical
assets
(Level 1)
|
Significant
other
observable
inputs
(Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
Total estimated fair value
|
Carrying amount
|
|||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
|
Financial assets
:
|
||||||||||||||||||||
|
Bank loans, net
(1)
|
$ | - | $ | - | $ | 7,343,148 | $ | 7,343,148 | $ | 7,298,612 | ||||||||||
|
Financial liabilities
:
|
||||||||||||||||||||
|
Bank deposits
|
$ | - | $ | 7,605,995 | $ | 318,021 | $ | 7,924,016 | $ | 7,913,846 | ||||||||||
|
Other borrowings
|
- | 349,600 | - | 349,600 | 349,600 | |||||||||||||||
|
Corporate debt
|
363,720 | 926,855 | - | 1,290,575 | 1,205,664 | |||||||||||||||
|
(1)
|
Excludes all impaired loans and loans held for sale which have been recorded at fair value in the Condensed Consolidated Statement of Financial Condition at March 31, 2012.
|
|
Estimated
|
Carrying
|
|||||||
|
fair value
|
amount
|
|||||||
|
(in thousands)
|
||||||||
|
Financial assets:
|
||||||||
|
Bank loans, net
|
$ | 6,596,439 | $ | 6,547,914 | ||||
|
Financial liabilities:
|
||||||||
|
Bank deposits
|
7,745,607 | 7,739,322 | ||||||
|
Corporate debt
|
675,509 | 611,968 | ||||||
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||
|
Trading
instruments
|
Instruments
sold but not
yet purchased
|
Trading
instruments
|
Instruments
sold but not
yet purchased
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Municipal and provincial obligations
|
$ | 150,280 | $ | 357 | $ | 164,402 | $ | 607 | ||||||||
|
Corporate obligations
|
26,920 | 505 | 27,607 | 5,625 | ||||||||||||
|
Government and agency obligations
|
47,522 | 66,030 | 36,106 | 56,472 | ||||||||||||
|
Agency MBS and CMOs
|
128,564 | 142 | 147,757 | 159 | ||||||||||||
|
Non-agency CMOs and ABS
|
30,353 | - | 49,119 | - | ||||||||||||
|
Total debt securities
|
383,639 | 67,034 | 424,991 | 62,863 | ||||||||||||
|
Derivative contracts
|
35,840 | 3,066 | 38,304 | 6,588 | ||||||||||||
|
Equity securities
|
23,347 | 10,323 | 21,197 | 6,699 | ||||||||||||
|
Other securities
|
9,025 | - | 8,279 | - | ||||||||||||
|
Total
|
$ | 451,851 | $ | 80,423 | $ | 492,771 | $ | 76,150 | ||||||||
|
Cost basis
|
Gross
unrealized gains
|
Gross
unrealized losses
|
Fair value
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
March 31, 2012:
|
||||||||||||||||
|
Available for sale securities:
|
||||||||||||||||
|
Agency MBS and CMOs
|
$ | 255,832 | $ | 1,284 | $ | (446 | ) | $ | 256,670 | |||||||
|
Non-agency CMOs
(1)
|
179,282 | - | (33,824 | ) | 145,458 | |||||||||||
|
Total RJ Bank available for sale securities
|
435,114 | 1,284 | (34,270 | ) | 402,128 | |||||||||||
|
Auction rate securities:
|
||||||||||||||||
|
Municipal obligations
(2)
|
79,377 | 221 | (7,689 | ) | 71,909 | |||||||||||
|
Preferred securities
|
99,431 | 2,661 | - | 102,092 | ||||||||||||
|
Total auction rate securities
|
178,808 | 2,882 | (7,689 | ) | 174,001 | |||||||||||
|
Other securities
|
3 | 10 | - | 13 | ||||||||||||
|
Total available for sale securities
|
$ | 613,925 | $ | 4,176 | $ | (41,959 | ) | $ | 576,142 | |||||||
|
September 30, 2011:
|
||||||||||||||||
|
Available for sale securities:
|
||||||||||||||||
|
Agency MBS and CMOs
|
$ | 178,120 | $ | 639 | $ | (27 | ) | $ | 178,732 | |||||||
|
Non-agency CMOs
(3)
|
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
|
196,048 | - | - | 196,048 | ||||||||||||
|
Other securities
|
3 | 7 | - | 10 | ||||||||||||
|
Total available for sale securities
|
$ | 567,127 | $ | 646 | $ | (47,108 | ) | $ | 520,665 | |||||||
|
(1)
|
As of March 31, 2012, the non-credit portion of other-than-temporary impairment (“OTTI”) recorded in accumulated other comprehensive income (“AOCI”) was $27.8 million (before taxes).
|
|
(2)
|
As of March 31, 2012, the non-credit portion of OTTI recorded in AOCI was $7.5 million (before taxes).
|
|
(3)
|
As of September 30, 2011, the non-credit portion of OTTI recorded in AOCI was $37.9 million (before taxes).
|
|
March 31, 2012
|
||||||||||||||||||||
|
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
|
$ | - | $ | 84 | $ | 93,133 | $ | 162,615 | $ | 255,832 | ||||||||||
|
Carrying value
|
- | 83 | 93,076 | 163,511 | 256,670 | |||||||||||||||
|
Weighted-average yield
|
- | 0.36 | % | 0.56 | % | 0.80 | % | 0.71 | % | |||||||||||
|
Non-agency CMOs:
|
||||||||||||||||||||
|
Amortized cost
|
$ | - | $ | - | $ | - | $ | 179,282 | $ | 179,282 | ||||||||||
|
Carrying value
|
- | - | - | 145,458 | 145,458 | |||||||||||||||
|
Weighted-average yield
|
- | - | - | 3.15 | % | 3.15 | % | |||||||||||||
|
Sub-total agency MBS & CMOs and non-agency CMOs:
|
||||||||||||||||||||
|
Amortized cost
|
$ | - | $ | 84 | $ | 93,133 | $ | 341,897 | $ | 435,114 | ||||||||||
|
Carrying value
|
- | 83 | 93,076 | 308,969 | 402,128 | |||||||||||||||
|
Weighted-average yield
|
- | 0.36 | % | 0.56 | % | 1.91 | % | 1.59 | % | |||||||||||
|
Auction rate securities:
|
||||||||||||||||||||
|
Municipal obligations
|
||||||||||||||||||||
|
Amortized cost
|
$ | - | $ | - | $ | 553 | $ | 78,824 | $ | 79,377 | ||||||||||
|
Carrying value
|
- | - | 543 | 71,366 | 71,909 | |||||||||||||||
|
Weighted-average yield
|
- | - | 0.48 | % | 0.76 | % | 0.76 | % | ||||||||||||
|
Preferred securities:
|
||||||||||||||||||||
|
Amortized cost
|
$ | - | $ | - | $ | - | $ | 99,431 | $ | 99,431 | ||||||||||
|
Carrying value
|
- | - | - | 102,092 | 102,092 | |||||||||||||||
|
Weighted-average yield
|
- | - | - | 0.26 | % | 0.26 | % | |||||||||||||
|
Sub-total auction rate securities:
|
||||||||||||||||||||
|
Amortized cost
|
$ | - | $ | - | $ | 553 | $ | 178,255 | $ | 178,808 | ||||||||||
|
Carrying value
|
- | - | 543 | 173,458 | 174,001 | |||||||||||||||
|
Weighted-average yield
|
- | - | 0.48 | % | 0.48 | % | 0.48 | % | ||||||||||||
|
Other securities:
|
||||||||||||||||||||
|
Amortized cost
|
$ | - | $ | - | $ | - | $ | 3 | $ | 3 | ||||||||||
|
Carrying value
|
- | - | - | 13 | 13 | |||||||||||||||
|
Total available for sale securities:
|
||||||||||||||||||||
|
Amortized cost
|
$ | - | $ | 84 | $ | 93,686 | $ | 520,155 | $ | 613,925 | ||||||||||
|
Carrying value
|
- | 83 | 93,619 | 482,440 | 576,142 | |||||||||||||||
|
Weighted-average yield
|
- | 0.36 | % | 0.56 | % | 1.42 | % | 1.29 | % | |||||||||||
|
March 31, 2012
|
||||||||||||||||||||||||
|
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
|
$ | 74,057 | $ | (410 | ) | $ | 13,888 | $ | (36 | ) | $ | 87,945 | $ | (446 | ) | |||||||||
|
Non-agency CMOs
|
1,308 | (10 | ) | 144,150 | (33,814 | ) | 145,458 | (33,824 | ) | |||||||||||||||
|
ARS municipal obligations
|
52,802 | (7,689 | ) | - | - | 52,802 | (7,689 | ) | ||||||||||||||||
|
Total impaired securities
|
$ | 128,167 | $ | (8,109 | ) | $ | 158,038 | $ | (33,850 | ) | $ | 286,205 | $ | (41,959 | ) | |||||||||
|
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 | ) | |||||||||
|
March 31, 2012
|
|||
|
Range
|
Weighted-
average
(1)
|
||
|
Default rate
|
0% - 36.8%
|
13.7%
|
|
|
Loss severity
|
14.9% - 71.7%
|
46.5%
|
|
|
Prepayment rate
|
0.07% - 17.4%
|
7.1%
|
|
|
Three months ended
March 31,
|
Six months ended
March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Amount related to credit losses on securities we held at the beginning of the period
|
$ | 24,402 | $ | 20,995 | $ | 22,306 | $ | 18,816 | ||||||||
|
Additions to the amount related to credit loss for which an OTTI was not previously recognized
|
- | 213 | 462 | 213 | ||||||||||||
|
Decreases to the amount related to credit loss for securities sold during the period
|
- | (6,744 | ) | - | (6,744 | ) | ||||||||||
|
Additional increases to the amount related to credit loss for which an OTTI was previously recognized
|
1,337 | 3,006 | 2,971 | 5,185 | ||||||||||||
|
Amount related to credit losses on securities we held at the end of the period
|
$ | 25,739 | $ | 17,470 | $ | 25,739 | $ | 17,470 | ||||||||
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||
|
Balance
|
%
|
Balance
|
%
|
|||||||||||||
|
($ in thousands)
|
||||||||||||||||
|
Loans held for sale, net
(1)
|
$ | 99,255 | 1 | % | $ | 102,236 | 2 | % | ||||||||
|
Loans held for investment:
|
||||||||||||||||
|
C&I loans
|
4,820,364 | 63 | % | 4,100,939 | 61 | % | ||||||||||
|
CRE construction loans
|
50,010 | 1 | % | 29,087 | - | |||||||||||
|
CRE loans
|
937,570 | 12 | % | 742,889 | 11 | % | ||||||||||
|
Residential mortgage loans
|
1,726,132 | 23 | % | 1,756,486 | 26 | % | ||||||||||
|
Consumer loans
|
40,553 | - | 7,438 | - | ||||||||||||
|
Total loans held for investment
|
7,574,629 | 6,636,839 | ||||||||||||||
|
Net unearned income and deferred expenses
|
(83,378 | ) | (45,417 | ) | ||||||||||||
|
Total loans held for investment, net
(1)
|
7,491,251 | 6,591,422 | ||||||||||||||
|
Total loans held for sale and investment
|
7,590,506 | 100 | % | 6,693,658 | 100 | % | ||||||||||
|
Allowance for loan losses
|
(144,678 | ) | (145,744 | ) | ||||||||||||
|
Bank loans, net
|
$ | 7,445,828 | $ | 6,547,914 | ||||||||||||
|
(1)
|
Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs.
|
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||||||
|
Purchases
|
Sales
|
Purchases
|
Sales
|
Purchases
|
Sales
|
Purchases
|
Sales
|
|||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||||
|
C&I loans
(1)
|
$ | 239,108 | $ | 26,358 | $ | 6,930 | $ | 12,912 | $ | 288,860 | $ | 32,238 | $ | 6,930 | $ | 15,879 | ||||||||||||||||
|
CRE construction
(1)
|
31,074 | - | - | - | 31,074 | - | - | - | ||||||||||||||||||||||||
|
CRE loans
(1)
|
121,402 | - | - | - | 121,402 | - | - | - | ||||||||||||||||||||||||
|
Residential mortgage loans
|
4,720 | - | 460 | - | 33,104 | - | 40,423 | - | ||||||||||||||||||||||||
|
Total
|
$ | 396,304 | $ | 26,358 | $ | 7,390 | $ | 12,912 | $ | 474,440 | $ | 32,238 | $ | 47,353 | $ | 15,879 | ||||||||||||||||
|
(1)
|
Includes a total of $367 million for a Canadian loan portfolio purchased during the three months ended March 31, 2012, which was comprised of $219 million C&I, $31 million of CRE construction and $117 million of CRE loans.
|
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
($ in thousands)
|
||||||||
|
Nonaccrual loans:
|
||||||||
|
C&I loans
|
$ | 6,230 | $ | 25,685 | ||||
|
CRE loans
|
9,441 | 15,842 | ||||||
|
Residential mortgage loans:
|
||||||||
|
First mortgage loans
|
86,970 | 90,992 | ||||||
|
Home equity loans/lines
|
171 | 67 | ||||||
|
Total nonaccrual loans
|
102,812 | 132,586 | ||||||
|
Accruing loans which are 90 days past due:
|
||||||||
|
Residential mortgage loans:
|
||||||||
|
First mortgage loans
|
- | 690 | ||||||
|
Home equity loans/lines
|
- | 47 | ||||||
|
Total accruing loans which are 90 days past due
|
- | 737 | ||||||
|
Total nonperforming loans
|
102,812 | 133,323 | ||||||
|
Real estate owned and other repossessed assets, net:
|
||||||||
|
CRE
|
6,178 | 7,707 | ||||||
|
Residential:
|
||||||||
|
First mortgage
|
7,792 | 6,852 | ||||||
|
Home equity
|
13 | 13 | ||||||
|
Total
|
13,983 | 14,572 | ||||||
|
Total nonperforming assets, net
|
$ | 116,795 | $ | 147,895 | ||||
|
Total nonperforming assets, net as a % of RJ Bank total assets
|
1.30 | % | 1.64 | % | ||||
|
30-59
days
|
60-89
days
|
90 days
or more
|
Total
past due
|
Current
|
Total loans held for
investment
(1)
|
|||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
|
As of March 31, 2012:
|
||||||||||||||||||||||||
|
C&I loans
|
$ | 231 | $ | - | $ | - | $ | 231 | $ | 4,820,133 | $ | 4,820,364 | ||||||||||||
|
CRE construction loans
|
- | - | - | - | 50,010 | 50,010 | ||||||||||||||||||
|
CRE loans
|
- | - | 4,997 | 4,997 | 932,573 | 937,570 | ||||||||||||||||||
|
Residential mortgage loans:
|
||||||||||||||||||||||||
|
First mortgage loans
|
10,429 | 6,520 | 60,349 | 77,298 | 1,621,118 | 1,698,416 | ||||||||||||||||||
|
Home equity loans/lines
|
338 | - | 65 | 403 | 27,313 | 27,716 | ||||||||||||||||||
|
Consumer loans
|
- | - | - | - | 40,553 | 40,553 | ||||||||||||||||||
|
Total loans held for investment, net
|
$ | 10,998 | $ | 6,520 | $ | 65,411 | $ | 82,929 | $ | 7,491,700 | $ | 7,574,629 | ||||||||||||
|
As of September 30, 2011:
|
||||||||||||||||||||||||
|
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.
|
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||||||||||
|
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
|
$ | 6,230 | $ | 12,558 | $ | 3,400 | $ | 25,685 | $ | 26,535 | $ | 8,478 | ||||||||||||
|
CRE loans
|
18 | 27 | 1 | 6,122 | 6,131 | 1,014 | ||||||||||||||||||
|
Residential mortgage loans:
|
||||||||||||||||||||||||
|
First mortgage loans
|
79,489 | 119,732 | 10,300 | 83,471 | 123,202 | 10,226 | ||||||||||||||||||
|
Home equity loans/lines
|
128 | 128 | 18 | 128 | 128 | 20 | ||||||||||||||||||
|
Total
|
85,865 | 132,445 | 13,719 | 115,406 | 155,996 | 19,738 | ||||||||||||||||||
|
Impaired loans without allowance for loan losses:
(2)
|
||||||||||||||||||||||||
|
CRE loans
|
9,423 | 18,477 | - | 9,720 | 20,648 | - | ||||||||||||||||||
|
Residential - first mortgage loans
|
7,992 | 12,405 | - | 6,553 | 10,158 | - | ||||||||||||||||||
|
Total
|
17,415 | 30,882 | - | 16,273 | 30,806 | - | ||||||||||||||||||
|
Total impaired loans
|
$ | 103,280 | $ | 163,327 | $ | 13,719 | $ | 131,679 | $ | 186,802 | $ | 19,738 | ||||||||||||
|
(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.
|
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Average impaired loan balance:
|
||||||||||||||||
|
C&I loans
|
$ | 7,094 | $ | - | $ | 13,476 | $ | - | ||||||||
|
CRE loans
|
13,309 | 46,923 | 14,567 | 46,998 | ||||||||||||
|
Residential mortgage loans:
|
||||||||||||||||
|
First mortgage loans
|
88,062 | 85,442 | (1) | 88,336 | 84,923 | (1) | ||||||||||
|
Home equity loans/lines
|
141 | 143 | 135 | 144 | ||||||||||||
|
Total
|
$ | 108,606 | $ | 132,508 | $ | 116,514 | $ | 132,065 | ||||||||
|
Interest income recognized:
|
||||||||||||||||
|
Residential mortgage loans:
|
||||||||||||||||
|
First mortgage loans
|
$ | 251 | $ | 131 | (1) | $ | 643 | $ | 413 | (1) | ||||||
|
Home equity loans/lines
|
1 | 1 | 2 | 2 | ||||||||||||
|
Total
|
$ | 252 | $ | 132 | $ | 645 | $ | 415 | ||||||||
|
(1)
|
In order to enhance the comparability of amounts presented, the March 31, 2011 amount includes nonaccrual loans, or related interest income, as applicable, for which a charge-off had been recorded. The amount originally reported for this period did not include such loans.
|
|
Number of
contracts
|
Pre-modification
outstanding
recorded
investment
|
Post-modification
outstanding
recorded
investment
|
||||||||||
|
($ in thousands)
|
||||||||||||
|
Three months ended March 31, 2012:
|
||||||||||||
|
Residential – first mortgage loans
|
4 | $ | 1,197 | $ | 1,343 | |||||||
|
Three months ended March 31, 2011:
|
||||||||||||
|
Residential – first mortgage loans
|
9 | $ | 3,930 | $ | 4,159 | |||||||
|
Six months ended March 31, 2012:
|
||||||||||||
|
Residential – first mortgage loans
|
9 | $ | 3,411 | $ | 3,666 | |||||||
|
Six months ended March 31, 2011:
|
||||||||||||
|
Residential – first mortgage loans
|
15 | $ | 6,696 | $ | 7,024 | |||||||
|
Residential mortgage
|
||||||||||||||||||||||||||||
|
C&I
|
CRE
construction
|
CRE
|
First
mortgage
|
Home
equity
|
Consumer
|
Total
|
||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
As of March 31, 2012:
|
||||||||||||||||||||||||||||
|
Pass
|
$ | 4,656,534 | $ | 50,010 | $ | 788,680 | $ | 1,580,664 | $ | 27,417 | $ | 40,553 | $ | 7,143,858 | ||||||||||||||
|
Special mention
(1)
|
125,604 | - | 107,654 | 29,561 | 128 | - | 262,947 | |||||||||||||||||||||
|
Substandard
(1)
|
31,996 | - | 36,792 | 88,191 | 171 | - | 157,150 | |||||||||||||||||||||
|
Doubtful
(1)
|
6,230 | - | 4,444 | - | - | - | 10,674 | |||||||||||||||||||||
|
Total
|
$ | 4,820,364 | $ | 50,010 | $ | 937,570 | $ | 1,698,416 | $ | 27,716 | $ | 40,553 | $ | 7,574,629 | ||||||||||||||
|
As of September 30, 2011:
|
||||||||||||||||||||||||||||
|
Pass
|
$ | 3,906,358 | $ | 29,087 | $ | 572,124 | $ | 1,607,327 | $ | 30,319 | $ | 7,438 | $ | 6,152,653 | ||||||||||||||
|
Special mention
(1)
|
88,889 | - | 76,021 | 23,684 | 170 | - | 188,764 | |||||||||||||||||||||
|
Substandard
(1)
|
93,658 | - | 90,058 | 94,758 | 228 | - | 278,702 | |||||||||||||||||||||
|
Doubtful
(1)
|
12,034 | - | 4,686 | - | - | - | 16,720 | |||||||||||||||||||||
|
Total
|
$ | 4,100,939 | $ | 29,087 | $ | 742,889 | $ | 1,725,769 | $ | 30,717 | $ | 7,438 | $ | 6,636,839 | ||||||||||||||
|
(1)
|
Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans.
|
|
Balance
(1)
|
||||
|
(in thousands)
|
||||
|
LTV range:
|
||||
|
LTV less than 50%
|
$ | 292,339 | ||
|
LTV greater than 50% but less than 80%
|
413,981 | |||
|
LTV greater than 80% but less than 100%
|
259,248 | |||
|
LTV greater than 100%, but less than 120%
|
272,106 | |||
|
LTV greater than 120% but less than 140%
|
106,302 | |||
|
LTV greater than 140%
|
63,674 | |||
|
Total
|
$ | 1,407,650 | ||
|
(1)
|
Excludes loans that have full repurchase recourse for any delinquent loans.
|
|
Loans held for investment
|
||||||||||||||||||||||||||||
|
Loans held
for sale
|
C&I
|
CRE
construction
|
CRE
|
Residential
mortgage
|
Consumer
|
Total
|
||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
Three months ended
March 31, 2012:
|
||||||||||||||||||||||||||||
|
Balance at beginning of period:
|
$ | - | $ | 84,086 | $ | 105 | $ | 30,427 | $ | 32,864 | $ | 21 | $ | 147,503 | ||||||||||||||
|
Provision for loan losses
|
- | 2,235 | (1) | 636 | (1) | (2,728 | ) (1) | 4,985 | 26 | 5,154 | ||||||||||||||||||
|
Net charge-offs:
|
||||||||||||||||||||||||||||
|
Charge-offs
|
- | (2,068 | ) | - | (1,000 | ) | (5,329 | ) | - | (8,397 | ) | |||||||||||||||||
|
Recoveries
|
- | - | - | 118 | 222 | 5 | 345 | |||||||||||||||||||||
|
Net charge-offs
|
- | (2,068 | ) | - | (882 | ) | (5,107 | ) | 5 | (8,052 | ) | |||||||||||||||||
|
Foreign exchange translation adjustment
|
- | 47 | 8 | 18 | - | - | 73 | |||||||||||||||||||||
|
Balance at March 31, 2012
|
$ | - | $ | 84,300 | $ | 749 | $ | 26,835 | $ | 32,742 | $ | 52 | $ | 144,678 | ||||||||||||||
|
Six months ended
March 31, 2012:
|
||||||||||||||||||||||||||||
|
Balance at beginning of period:
|
$ | 5 | $ | 81,267 | $ | 490 | $ | 30,752 | $ | 33,210 | $ | 20 | $ | 145,744 | ||||||||||||||
|
Provision for loan losses
|
(5 | ) | 8,203 | (1) | 251 | (1) | (3,483 | ) (1) | 7,584 | 60 | 12,610 | |||||||||||||||||
|
Net charge-offs:
|
||||||||||||||||||||||||||||
|
Charge-offs
|
- | (5,217 | ) | - | (1,000 | ) | (8,586 | ) | (38 | ) | (14,841 | ) | ||||||||||||||||
|
Recoveries
|
- | - | - | 548 | 534 | 10 | 1,092 | |||||||||||||||||||||
|
Net charge-offs
|
- | (5,217 | ) | - | (452 | ) | (8,052 | ) | (28 | ) | (13,749 | ) | ||||||||||||||||
|
Foreign exchange translation adjustment
|
- | 47 | 8 | 18 | - | - | 73 | |||||||||||||||||||||
|
Balance at March 31, 2012
|
$ | - | $ | 84,300 | $ | 749 | $ | 26,835 | $ | 32,742 | $ | 52 | $ | 144,678 | ||||||||||||||
|
(1)
|
There were additional provisions for loan losses recorded during the three months ended March 31, 2012 of $3.3 million, $558 thousand, and $1.3 million for C&I, CRE construction, and CRE loans, respectively, related to a Canadian loan portfolio RJ Bank purchased during the period.
|
|
Loans held for investment
|
||||||||||||||||||||||||||||
|
Loans held
for sale
|
C&I
|
CRE
construction
|
CRE
|
Residential
mortgage
|
Consumer
|
Total
|
||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
Three months ended
March 31, 2011:
|
||||||||||||||||||||||||||||
|
Balance at beginning of period:
|
$ | 48 | $ | 59,978 | $ | 2,672 | $ | 48,606 | $ | 34,698 | $ | 22 | $ | 146,024 | ||||||||||||||
|
Provision for loan losses
|
(44 | ) | 4,800 | 73 | (1,122 | ) | 4,894 | 36 | 8,637 | |||||||||||||||||||
|
Net charge-offs:
|
||||||||||||||||||||||||||||
|
Charge-offs
|
- | (82 | ) | - | (3,481 | ) | (5,790 | ) | (40 | ) | (9,393 | ) | ||||||||||||||||
|
Recoveries
|
- | - | - | 179 | 667 | 1 | 847 | |||||||||||||||||||||
|
Net charge-offs
|
- | (82 | ) | - | (3,302 | ) | (5,123 | ) | (39 | ) | (8,546 | ) | ||||||||||||||||
|
Balance at March 31, 2011
|
$ | 4 | $ | 64,696 | $ | 2,745 | $ | 44,182 | $ | 34,469 | $ | 19 | $ | 146,115 | ||||||||||||||
|
Six months ended
March 31, 2011:
|
||||||||||||||||||||||||||||
|
Balance at beginning of period:
|
$ | 23 | $ | 60,464 | $ | 4,473 | $ | 47,771 | $ | 34,297 | $ | 56 | $ | 147,084 | ||||||||||||||
|
Provision for loan losses
|
(19 | ) | 4,314 | (1,728 | ) | 6,062 | 11,238 | 2 | 19,869 | |||||||||||||||||||
|
Net charge-offs:
|
||||||||||||||||||||||||||||
|
Charge-offs
|
- | (82 | ) | - | (9,930 | ) | (12,105 | ) | (40 | ) | (22,157 | ) | ||||||||||||||||
|
Recoveries
|
- | - | - | 279 | 1,039 | 1 | 1,319 | |||||||||||||||||||||
|
Net charge-offs
|
- | (82 | ) | - | (9,651 | ) | (11,066 | ) | (39 | ) | (20,838 | ) | ||||||||||||||||
|
Balance at March 31, 2011
|
$ | 4 | $ | 64,696 | $ | 2,745 | $ | 44,182 | $ | 34,469 | $ | 19 | $ | 146,115 | ||||||||||||||
|
Loans held for investment
|
||||||||||||||||||||||||||||
|
Loans held
for sale
|
C&I
|
CRE
construction
|
CRE
|
Residential
mortgage
|
Consumer
|
Total
|
||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
March 31, 2012:
|
||||||||||||||||||||||||||||
|
Allowance for loan losses:
|
||||||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$ | - | $ | 3,400 | $ | - | $ | 1 | $ | 3,223 | $ | - | $ | 6,624 | ||||||||||||||
|
Collectively evaluated for impairment
|
- | 80,900 | 749 | 26,834 | 29,519 | 52 | 138,054 | |||||||||||||||||||||
|
Total allowance for loan losses
|
$ | - | $ | 84,300 | $ | 749 | $ | 26,835 | $ | 32,742 | $ | 52 | $ | 144,678 | ||||||||||||||
|
Loan category as a % of total recorded investment
|
1 | % | 63 | % | 1 | % | 12 | % | 23 | % | - | 100 | % | |||||||||||||||
|
Recorded
investment:
(1)
|
||||||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$ | - | $ | 6,230 | $ | - | $ | 9,441 | $ | 25,371 | $ | - | $ | 41,042 | ||||||||||||||
|
Collectively evaluated for impairment
|
90,731 | 4,814,134 | 50,010 | 928,129 | 1,700,761 | 40,553 | 7,624,318 | |||||||||||||||||||||
|
Total recorded investment
|
$ | 90,731 | $ | 4,820,364 | $ | 50,010 | $ | 937,570 | $ | 1,726,132 | $ | 40,553 | $ | 7,665,360 | ||||||||||||||
|
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 | ||||||||||||||
|
(1)
|
Excludes any net unearned income and deferred expenses.
|
|
Aggregate
assets
(1)
|
Aggregate
liabilities
(1)
|
|||||||
|
(in thousands)
|
||||||||
|
March 31, 2012:
|
||||||||
|
LIHTC Funds
|
$ | 241,381 | $ | 105,659 | ||||
|
Guaranteed LIHTC Fund
(2)
|
85,322 | 1,094 | ||||||
|
Restricted Stock Trust Fund
|
15,219 | 9,852 | ||||||
|
EIF Funds
|
13,904 | - | ||||||
|
Total
|
$ | 355,826 | $ | 116,605 | ||||
|
September 30, 2011:
|
||||||||
|
LIHTC Funds
|
$ | 257,631 | $ | 121,908 | ||||
|
Guaranteed LIHTC Fund
(2)
|
87,811 | 10,424 | ||||||
|
Restricted Stock Trust Fund
|
8,099 | 4,630 | ||||||
|
EIF Funds
|
16,223 | - | ||||||
|
Total
|
$ | 369,764 | $ | 136,962 | ||||
|
(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.
|
|
(2)
|
In connection with one of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has provided the investor members with a guaranteed return on their investment in the fund (the “Guaranteed LIHTC Fund”).
|
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Assets:
|
||||||||
|
Assets segregated pursuant to regulations and other segregated assets
|
$ | 13,801 | $ | 18,317 | ||||
|
Receivables, other
|
6,514 | 11,288 | ||||||
|
Investments in real estate partnerships held by consolidated variable interest entities
|
306,040 | 320,384 | ||||||
|
Trust fund investment in RJF common stock
(1)
|
15,219 | 8,099 | ||||||
|
Prepaid expenses and other assets
|
14,851 | 17,197 | ||||||
|
Total assets
|
$ | 356,425 | $ | 375,285 | ||||
|
Liabilities and equity:
|
||||||||
|
Loans payable of consolidated variable interest entities
(2)
|
$ | 90,950 | $ | 99,982 | ||||
|
Trade and other payables
|
2,739 | 5,353 | ||||||
|
Intercompany payables
|
8,931 | 6,904 | ||||||
|
Total liabilities
|
102,620 | 112,239 | ||||||
|
RJF Equity
|
6,028 | 5,537 | ||||||
|
Noncontrolling interests
|
247,777 | 257,509 | ||||||
|
Total equity
|
253,805 | 263,046 | ||||||
|
Total liabilities and equity
|
$ | 356,425 | $ | 375,285 | ||||
|
(1)
|
Included in treasury stock in our Condensed Consolidated Statements of Financial Condition.
|
|
(2)
|
Comprised of several non-recourse loans. We are not contingently liable under any of these loans.
|
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Revenues:
|
||||||||||||||||
|
Interest
|
$ | 1 | $ | 1 | $ | 2 | $ | 1 | ||||||||
|
Other
|
220 | 2,656 | 553 | 2,591 | ||||||||||||
|
Total revenues
|
221 | 2,657 | 555 | 2,592 | ||||||||||||
|
Interest expense
|
1,356 | 1,578 | 2,661 | 3,133 | ||||||||||||
|
Net (expense) revenues
|
(1,135 | ) | 1,079 | (2,106 | ) | (541 | ) | |||||||||
|
Non-interest expenses
|
11,257 | 5,990 | 16,188 | 9,661 | ||||||||||||
|
Net loss including noncontrolling interests
|
(12,392 | ) | (4,911 | ) | (18,294 | ) | (10,202 | ) | ||||||||
|
Net loss attributable to noncontrolling interests
|
(12,357 | ) | (4,629 | ) | (18,785 | ) | (9,628 | ) | ||||||||
|
Net income (loss) attributable to RJF
|
$ | (35 | ) | $ | (282 | ) | $ | 491 | $ | (574 | ) | |||||
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||||||||||
|
Aggregate
assets
|
Aggregate
liabilities
|
Our risk
of loss
|
Aggregate
assets
|
Aggregate
liabilities
|
Our risk
of loss
|
|||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
|
LIHTC Funds
|
$ | 1,871,920 | $ | 716,776 | $ | 36,115 | $ | 1,582,764 | $ | 533,311 | $ | 37,733 | ||||||||||||
|
Other Real Estate Limited Partnerships and LLCs
|
32,097 | 35,688 | 1,454 | 39,344 | 35,467 | 8,068 | ||||||||||||||||||
|
Total
|
$ | 1,904,017 | $ | 752,464 | $ | 37,569 | $ | 1,622,108 | $ | 568,778 | $ | 45,801 | ||||||||||||
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||||||||||
|
Aggregate
assets
|
Aggregate
liabilities
|
Our risk
of loss
|
Aggregate
assets
|
Aggregate
liabilities
|
Our risk
of loss
|
|||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
|
Managed Funds
|
$ | 13,322 | $ | - | $ | 830 | $ | 12,813 | $ | - | $ | 834 | ||||||||||||
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||
|
Balance
|
Weighted-
average
rate
(1)
|
Balance
|
Weighted-
average
rate
(1)
|
|||||||||||||
|
($ in thousands)
|
||||||||||||||||
|
Bank deposits:
|
||||||||||||||||
|
NOW accounts
|
$ | 5,060 | 0.01 | % | $ | 4,183 | 0.01 | % | ||||||||
|
Demand deposits (non-interest-bearing)
|
19,237 | - | 21,663 | - | ||||||||||||
|
Savings and money market accounts
|
7,581,697 | 0.04 | % | 7,468,136 | 0.08 | % | ||||||||||
|
Certificates of deposit
|
307,852 | 2.19 | % | 245,340 | 2.37 | % | ||||||||||
|
Total bank deposits
(2)
|
$ | 7,913,846 | 0.12 | % | $ | 7,739,322 | 0.15 | % | ||||||||
|
(1)
|
Weighted-average rate calculation is based on the actual deposit balances at March 31, 2012 and September 30, 2011, respectively.
|
|
(2)
|
Bank deposits exclude affiliate deposits of approximately $3 million and $250 million at March 31, 2012 and September 30, 2011, respectively.
|
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||
|
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
|
$ | 10,024 | $ | 8,316 | $ | 7,403 | $ | 7,977 | ||||||||
|
Over three through six months
|
3,899 | 10,362 | 6,408 | 6,153 | ||||||||||||
|
Over six through twelve months
|
10,295 | 11,209 | 6,711 | 15,103 | ||||||||||||
|
Over one through two years
|
21,045 | 24,323 | 19,567 | 19,862 | ||||||||||||
|
Over two through three years
|
23,637 | 28,929 | 10,045 | 17,286 | ||||||||||||
|
Over three through four years
|
30,374 | 34,309 | 29,136 | 36,271 | ||||||||||||
|
Over four through five years
|
51,576 | 39,554 | 34,349 | 29,069 | ||||||||||||
|
Total
|
$ | 150,850 | $ | 157,002 | $ | 113,619 | $ | 131,721 | ||||||||
|
Three months ended
March 31,
|
Six months ended
March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Certificates of deposit
|
$ | 1,633 | $ | 1,541 | $ | 3,121 | $ | 3,129 | ||||||||
|
Money market, savings and NOW accounts
(1)
|
704 | 1,799 | 1,459 | 3,628 | ||||||||||||
|
Total interest expense on deposits
|
$ | 2,337 | $ | 3,340 | $ | 4,580 | $ | 6,757 | ||||||||
|
(1)
|
Interest expense on affiliate deposits for the three month period ended March 31, 2012 was insignificant. For the six month period ended March 31, 2012, excludes interest expense on affiliate deposits of $75 thousand.
|
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Other borrowings:
|
||||||||
|
Borrowings on secured lines of credit
(1)
|
$ | 99,000 | $ | - | ||||
|
Borrowings on unsecured lines of credit
(2)
|
250,600 | - | ||||||
|
Total other borrowings
|
$ | 349,600 | $ | - | ||||
|
(1)
|
Any borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities.
|
|
(2)
|
Any borrowings on unsecured lines of credit are day-to-day and are generally utilized for cash management purposes.
|
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Mortgage notes payable
(1)
|
$ | 51,056 | $ | 52,754 | ||||
|
4.25% senior notes, due 2016, net of unamortized discount of $405 thousand and $455 thousand at March 31, 2012 and September 30, 2011, respectively
(2)
|
249,595 | 249,545 | ||||||
|
8.60% senior notes, due 2019, net of unamortized discount of $37 thousand and $40 thousand at March 31, 2012 and September 30, 2011 , respectively
(3)
|
299,963 | 299,960 | ||||||
|
5.625% senior notes, due 2024, net of unamortized discount of $994 thousand at March 31, 2012
(4)
|
249,006 | - | ||||||
|
6.90% senior notes, due 2042
(5)
|
350,000 | - | ||||||
|
Other financings
(6)
|
6,044 | 9,709 | ||||||
|
Total corporate debt
|
$ | 1,205,664 | $ | 611,968 | ||||
|
(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 $57.9 million at March 31, 2012. 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)
|
In March 2012, we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 5.625% senior notes due April 2024. 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.
|
|
(5)
|
In March 2012, we sold in a registered underwritten public offering, $350 million in aggregate principal amount of 6.90% senior notes due March 2042. Interest on these senior notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15, commencing on June 15, 2012. On or after March 15, 2017, we may redeem some or all of the senior notes at any time at the redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued interest thereon to the redemption date.
|
|
(6)
|
This financing balance pertains to term loan financing of Raymond James European Securities, S.A.S. (“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.
|
|
March 31, 2012
|
||||
|
(in thousands)
|
||||
|
During the six months ending September 30, 2012
|
$ | 4,720 | ||
|
Fiscal 2013
|
6,718 | |||
|
Fiscal 2014
|
3,860 | |||
|
Fiscal 2015
|
4,086 | |||
|
Fiscal 2016
|
253,920 | |||
|
Fiscal 2017 and thereafter
|
932,360 | |||
|
Total
|
$ | 1,205,664 | ||
|
Asset derivatives
|
||||||||||||||||||
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||||
|
Balance sheet
location
|
Notional
amount
|
Fair
value
(1)
|
Balance sheet
location
|
Notional
amount
|
Fair
value
(1)
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||||
|
Derivatives designated as hedging instruments:
|
||||||||||||||||||
|
Forward foreign exchange contracts
|
Other assets
|
$ | 218,546 | $ | 69 |
Other assets
|
$ | - | $ | - | ||||||||
|
Derivatives not designated as hedging instruments:
|
||||||||||||||||||
|
Interest rate contracts
|
Trading instruments
|
$ | 2,208,582 | $ | 117,362 |
Trading instruments
|
$ | 2,248,150 | $ | 126,867 | ||||||||
|
Forward foreign exchange contracts
|
Other assets
|
$ | 42,105 | $ | 13 |
Other assets
|
$ | - | $ | - | ||||||||
|
(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 Condensed Consolidated Statements of Financial Condition is presented net.
|
|
Liability derivatives
|
||||||||||||||||||
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||||
|
Balance sheet
location
|
Notional
amount
|
Fair
value
(1)
|
Balance sheet
location
|
Notional
amount
|
Fair
value
(1)
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||||
|
Derivatives designated as hedging instruments:
|
||||||||||||||||||
|
Forward foreign exchange contracts
|
Trade and other payables
|
$ | 137,343 | $ | 421 |
Trade and other payables
|
$ | - | $ | - | ||||||||
|
Derivatives not designated as hedging instruments:
|
||||||||||||||||||
|
Interest rate contracts
|
Trading instruments sold
|
$ | 2,127,614 | $ | 101,096 |
Trading instruments sold
|
$ | 1,722,820 | $ | 112,457 | ||||||||
|
Forward foreign exchange contracts
|
Trade and other payables
|
$ | 3,008 | $ | 9 |
Trade and other payables
|
$ | - | $ | - | ||||||||
|
(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 Condensed Consolidated Statements of Financial Condition is presented net.
|
|
Amount of gain (loss) on derivatives
recognized in income
|
|||||||||||||||||
|
Three months ended
March 31,
|
Six months ended
March 31,
|
||||||||||||||||
|
Location of gain (loss)
recognized on derivatives in the
Condensed Consolidated Statements of
Income and Comprehensive Income
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
|||||||||||||||||
|
Derivatives not designated as hedging instruments:
|
|||||||||||||||||
|
Interest rate contracts
|
Net trading profits
|
$ | 1,372 | $ | 1,993 | $ | 1,195 | $ | 4,507 | ||||||||
|
Forward foreign exchange contracts
|
Other revenues
|
$ | 87 | $ | - | $ | 87 | $ | - | ||||||||
|
Sources of collateral
|
||||
|
(in thousands)
|
||||
|
Securities purchased under agreements to resell and other collateralized financings
|
$ | 338,664 | ||
|
Securities received in securities borrowed vs. cash transactions
|
193,108 | |||
|
Collateral received for margin loans
|
1,272,197 | |||
|
Securities received as collateral related to derivative contracts
|
7,877 | |||
|
Total
|
$ | 1,811,846 | ||
|
Uses of collateral
and trading securities
|
||||
|
(in thousands)
|
||||
|
Securities sold under agreements to repurchase
|
$ | 144,461 | ||
|
Securities delivered in securities loaned vs. cash transactions
|
527,744 | |||
|
Collateral used for secured loans
|
113,313 | |||
|
Collateral used for cash loans
|
16,775 | |||
|
Collateral used for deposits at clearing organizations
|
127,234 | |||
|
Total
|
$ | 929,527 | ||
|
Three months ended
March 31,
|
Six months ended
March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Interest income:
|
||||||||||||||||
|
Margin balances
|
$ | 13,252 | $ | 12,648 | $ | 26,954 | $ | 25,407 | ||||||||
|
Assets segregated pursuant to regulations and other segregated assets
|
2,185 | 2,089 | 4,384 | 4,075 | ||||||||||||
|
Bank loans, net of unearned income
|
77,587 | 66,381 | 149,609 | 140,585 | ||||||||||||
|
Available for sale securities
|
2,093 | 2,890 | 4,183 | 6,446 | ||||||||||||
|
Trading instruments
|
4,062 | 5,985 | 8,141 | 11,313 | ||||||||||||
|
Stock loan
|
2,633 | 1,369 | 5,021 | 2,965 | ||||||||||||
|
Other
|
7,040 | 5,449 | 12,656 | 10,406 | ||||||||||||
|
Total interest income
|
108,852 | 96,811 | 210,948 | 201,197 | ||||||||||||
|
Interest expense:
|
||||||||||||||||
|
Brokerage client liabilities
|
574 | 840 | 1,183 | 1,734 | ||||||||||||
|
Retail bank deposits
|
2,337 | 3,340 | 4,580 | 6,757 | ||||||||||||
|
Trading instrument sold but not yet purchased
|
476 | 1,074 | 999 | 1,901 | ||||||||||||
|
Stock borrow
|
491 | 400 | 951 | 909 | ||||||||||||
|
Borrowed funds
|
822 | 924 | 1,792 | 2,294 | ||||||||||||
|
Senior notes
|
11,046 | 6,523 | 20,353 | 13,046 | ||||||||||||
|
Interest expense of consolidated VIEs
|
1,356 | 1,578 | 2,661 | 3,133 | ||||||||||||
|
Other
|
814 | 8 | 1,437 | 1,417 | ||||||||||||
|
Total interest expense
|
17,916 | 14,687 | 33,956 | 31,191 | ||||||||||||
|
Net interest income
|
90,936 | 82,124 | 176,992 | 170,006 | ||||||||||||
|
Less: provision for loan losses
|
(5,154 | ) | (8,637 | ) | (12,610 | ) | (19,869 | ) | ||||||||
|
Net interest income after provision for loan losses
|
$ | 85,782 | $ | 73,487 | $ | 164,382 | $ | 150,137 | ||||||||
|
Three months ended
March 31,
|
Six months ended
March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Total share-based expense
|
$ | 4,244 | $ | 3,852 | $ | 7,799 | $ | 8,977 | ||||||||
|
Income tax benefits related to share-based expense
|
984 | 988 | 1,473 | 1,970 | ||||||||||||
|
Unrecognized
pre-tax expense
|
Remaining
weighted-
average period
|
|||||||
|
(in thousands)
|
(in years)
|
|||||||
|
Employees and directors
|
$ | 19,083 | 3.3 | |||||
|
Independent contractor financial advisors
|
1,013 | 3.3 | ||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Total share-based expense
|
$ | 5,994 | $ | 5,063 | $ | 12,567 | $ | 10,174 | ||||||||
|
Income tax benefits related to share-based expense
|
2,278 | 1,901 | 4,776 | 3,820 | ||||||||||||
|
Unrecognized
pre-tax expense
|
Remaining
weighted-
average period
|
|||||||
|
(in thousands)
|
(in years)
|
|||||||
|
Employees and directors
|
$ | 62,505 | 3.6 | |||||
|
Independent contractor financial advisors
|
1,137 | 1.9 | ||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Total share-based expense
|
$ | 2,190 | $ | 1,874 | $ | 9,139 | $ | 7,216 | ||||||||
|
Income tax benefits related to share-based expense
|
832 | 704 | 3,473 | 2,710 | ||||||||||||
|
Actual
|
Requirement for capital
adequacy purposes
|
To be well capitalized under prompt
corrective action
provisions
|
||||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
RJF as of March 31, 2012:
|
||||||||||||||||||||||||
|
Total capital (to risk-weighted assets)
|
$ | 3,190,346 | 18.8 | % | $ | 1,357,594 | 8.0 | % | $ | 1,696,993 | 10.0 | % | ||||||||||||
|
Tier I capital (to risk-weighted assets)
|
3,028,181 | 17.9 | % | 676,688 | 4.0 | % | 1,015,033 | 6.0 | % | |||||||||||||||
|
Tier I capital (to adjusted assets)
|
3,028,181 | 16.2 | % | 747,699 | 4.0 | % | 934,624 | 5.0 | % | |||||||||||||||
|
Actual
|
Requirement for capital
adequacy purposes
|
To be well capitalized under prompt
corrective action
provisions
|
||||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
RJ Bank as of March 31, 2012:
|
||||||||||||||||||||||||
|
Total capital (to risk-weighted assets)
|
$ | 1,098,232 | 13.3 | % | $ | 661,467 | 8.0 | % | $ | 826,833 | 10.0 | % | ||||||||||||
|
Tier I capital (to risk-weighted assets)
|
994,368 | 12.0 | % | 330,733 | 4.0 | % | 496,100 | 6.0 | % | |||||||||||||||
|
Tier I capital (to adjusted assets)
|
994,368 | 11.3 | % | 352,329 | 4.0 | % | 440,411 | 5.0 | % | |||||||||||||||
|
RJ Bank 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 | % | |||||||||||||||
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
($ in thousands)
|
||||||||
|
Raymond James & Associates, Inc.:
|
||||||||
|
(Alternative Method elected)
|
||||||||
|
Net capital as a percent of aggregate debit items
|
22.84 | % | 27.02 | % | ||||
|
Net capital
|
$ | 341,395 | $ | 409,869 | ||||
|
Less: required net capital
|
(29,894 | ) | (30,340 | ) | ||||
|
Excess net capital
|
$ | 311,501 | $ | 379,529 | ||||
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Raymond James Financial Services, Inc.:
|
||||||||
|
(Alternative Method elected)
|
||||||||
|
Net capital
|
$ | 16,824 | $ | 17,829 | ||||
|
Less: required net capital
|
(250 | ) | (250 | ) | ||||
|
Excess net capital
|
$ | 16,574 | $ | 17,579 | ||||
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Raymond James Ltd.:
|
||||||||
|
Risk adjusted capital before minimum
|
$ | 72,217 | $ | 70,855 | ||||
|
Less: required minimum capital
|
(250 | ) | (250 | ) | ||||
|
Risk adjusted capital
|
$ | 71,967 | $ | 70,605 | ||||
|
March 31, 2012
|
||||
|
(in thousands)
|
||||
|
Standby letters of credit
|
$ | 184,232 | ||
|
Open end consumer lines of credit
|
81,752 | |||
|
Commercial lines of credit
|
1,854,760 | |||
|
Unfunded loan commitments
|
138,088 | |||
|
Three months ended
March 31,
|
Six months ended
March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||||
|
Income for basic earnings per common share:
|
||||||||||||||||
|
Net income attributable to RJF
|
$ | 68,869 | $ | 80,917 | $ | 136,194 | $ | 162,640 | ||||||||
|
Less allocation of earnings and dividends to participating securities
(1)
|
(1,431 | ) | (2,624 | ) | (3,151 | ) | (5,512 | ) | ||||||||
|
Net income attributable to RJF common shareholders
|
$ | 67,438 | $ | 78,293 | $ | 133,043 | $ | 157,128 | ||||||||
|
Income for diluted earnings per common share:
|
||||||||||||||||
|
Net income attributable to RJF
|
$ | 68,869 | $ | 80,917 | $ | 136,194 | $ | 162,640 | ||||||||
|
Less allocation of earnings and dividends to participating securities
(1)
|
(1,421 | ) | (2,609 | ) | (3,137 | ) | (5,495 | ) | ||||||||
|
Net income attributable to RJF common shareholders
|
$ | 67,448 | $ | 78,308 | $ | 133,057 | $ | 157,145 | ||||||||
|
Common shares:
|
||||||||||||||||
|
Average common shares in basic computation
|
129,353 | 122,396 | 126,201 | 121,752 | ||||||||||||
|
Dilutive effect of outstanding stock options and certain restricted stock units
|
1,291 | 869 | 788 | 486 | ||||||||||||
|
Average common shares used in diluted computation
|
130,644 | 123,265 | 126,989 | 122,238 | ||||||||||||
|
Earnings per common share:
|
||||||||||||||||
|
Basic
|
$ | 0.52 | $ | 0.64 | $ | 1.05 | $ | 1.29 | ||||||||
|
Diluted
|
$ | 0.52 | $ | 0.64 | $ | 1.05 | $ | 1.29 | ||||||||
|
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive
|
68 | 339 | 199 | 2,569 | ||||||||||||
|
(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 2.7 million and 4.1 million for the three months ended March 31, 2012 and 2011, respectively. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of 3 million and 4.3 million for the six months ended March 31, 2012 and 2011, respectively. Dividends paid to participating securities amounted to $341 thousand and $533 thousand for the three months ended March 31, 2012 and 2011, respectively. Dividends paid to participating securities amounted to $758 thousand and $1 million for the six months ended March 31, 2012 and 2011, 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.
|
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
Dividends per common share - declared
|
$ | 0.13 | $ | 0.13 | $ | 0.26 | $ | 0.26 | ||||||||
|
Dividends per common share - paid
|
$ | 0.13 | $ | 0.13 | $ | 0.26 | $ | 0.24 | ||||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Revenues:
|
||||||||||||||||
|
Private Client Group
|
$ | 567,766 | $ | 556,632 | $ | 1,096,384 | $ | 1,076,063 | ||||||||
|
Capital Markets
|
165,126 | 177,409 | 301,291 | 350,435 | ||||||||||||
|
Asset Management
|
58,217 | 55,341 | 115,012 | 110,928 | ||||||||||||
|
RJ Bank
|
83,136 | 69,099 | 160,552 | 146,540 | ||||||||||||
|
Emerging Markets
|
8,527 | 11,962 | 13,179 | 20,551 | ||||||||||||
|
Securities Lending
|
2,733 | 1,479 | 5,175 | 3,229 | ||||||||||||
|
Proprietary Capital
|
13,390 | (275 | ) | 13,863 | 395 | |||||||||||
|
Other
|
3,270 | 3,574 | 5,931 | 6,977 | ||||||||||||
|
Intersegment eliminations
|
(12,312 | ) | (8,477 | ) | (22,717 | ) | (18,041 | ) | ||||||||
|
Total revenues
|
$ | 889,853 | $ | 866,744 | $ | 1,688,670 | $ | 1,697,077 | ||||||||
|
Income (loss) excluding noncontrolling interests and before provision for income taxes:
|
||||||||||||||||
|
Private Client Group
|
$ | 46,249 | $ | 45,990 | $ | 95,657 | $ | 101,730 | ||||||||
|
Capital Markets
|
22,012 | 33,689 | 32,013 | 58,335 | ||||||||||||
|
Asset Management
|
16,621 | 15,227 | 32,434 | 30,821 | ||||||||||||
|
RJ Bank
|
57,313 | 42,256 | 110,316 | 88,720 | ||||||||||||
|
Emerging Markets
|
(999 | ) | 1,192 | (3,548 | ) | 1,513 | ||||||||||
|
Securities Lending
|
1,430 | 330 | 2,636 | 854 | ||||||||||||
|
Proprietary Capital
|
3,741 | (4,032 | ) | 3,676 | (4,174 | ) | ||||||||||
|
Other
|
(34,870 | ) | (8,415 | ) | (50,836 | ) | (21,048 | ) | ||||||||
|
Pre-tax income excluding noncontrolling interests
|
111,497 | 126,237 | 222,348 | 256,751 | ||||||||||||
|
Add: net loss attributable to noncontrolling interests
|
(3,595 | ) | (1,999 | ) | (9,798 | ) | (5,767 | ) | ||||||||
|
Income including noncontrolling interests and before provision for income taxes
|
$ | 107,902 | $ | 124,238 | $ | 212,550 | $ | 250,984 | ||||||||
|
Net interest income (expense):
|
||||||||||||||||
|
Private Client Group
|
$ | 18,384 | $ | 16,576 | $ | 35,903 | $ | 32,165 | ||||||||
|
Capital Markets
|
977 | 1,911 | 2,174 | 3,428 | ||||||||||||
|
Asset Management
|
10 | 24 | 26 | 52 | ||||||||||||
|
RJ Bank
|
78,238 | 66,786 | 150,967 | 141,139 | ||||||||||||
|
Emerging Markets
|
248 | 494 | 356 | 628 | ||||||||||||
|
Securities Lending
|
2,142 | 968 | 4,070 | 2,055 | ||||||||||||
|
Proprietary Capital
|
221 | (20 | ) | 372 | 180 | |||||||||||
|
Other
|
(9,284 | ) | (4,615 | ) | (16,876 | ) | (9,641 | ) | ||||||||
|
Net interest income
|
$ | 90,936 | $ | 82,124 | $ | 176,992 | $ | 170,006 | ||||||||
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Total assets:
|
||||||||
|
Private Client Group
(1)
|
$ | 5,624,784 | $ | 5,581,214 | ||||
|
Capital Markets
(2)
|
1,686,682 | 1,478,974 | ||||||
|
Asset Management
|
66,240 | 61,793 | ||||||
|
RJ Bank
|
8,950,761 | 8,741,975 | ||||||
|
Emerging Markets
|
66,207 | 74,362 | ||||||
|
Securities Lending
|
550,197 | 817,770 | ||||||
|
Proprietary Capital
|
195,223 | 176,919 | ||||||
|
Other
|
2,135,282 | 1,073,988 | ||||||
|
Total
|
$ | 19,275,376 | $ | 18,006,995 | ||||
|
(1)
|
Includes $48 million of goodwill.
|
|
(2)
|
Includes $24 million of goodwill.
|
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Revenues:
|
||||||||||||||||
|
United States
|
$ | 781,467 | $ | 743,773 | $ | 1,492,465 | $ | 1,455,596 | ||||||||
|
Canada
|
80,166 | 95,738 | 143,899 | 187,014 | ||||||||||||
|
Europe
|
20,315 | 14,992 | 40,236 | 33,141 | ||||||||||||
|
Other
|
7,905 | 12,241 | 12,070 | 21,326 | ||||||||||||
|
Total
|
$ | 889,853 | $ | 866,744 | $ | 1,688,670 | $ | 1,697,077 | ||||||||
|
Pre-tax income excluding noncontrolling interests:
|
||||||||||||||||
|
United States
|
$ | 102,928 | $ | 112,149 | $ | 212,375 | $ | 228,921 | ||||||||
|
Canada
|
9,550 | 15,252 | 13,511 | 27,798 | ||||||||||||
|
Europe
|
(16 | ) | (2,284 | ) | (90 | ) | (1,716 | ) | ||||||||
|
Other
|
(965 | ) | 1,120 | (3,448 | ) | 1,748 | ||||||||||
|
Total
|
$ | 111,497 | $ | 126,237 | $ | 222,348 | $ | 256,751 | ||||||||
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Total assets:
|
||||||||
|
United States
(1)
|
$ | 17,460,307 | $ | 16,456,892 | ||||
|
Canada
(2)
|
1,716,299 | 1,436,505 | ||||||
|
Europe
(3)
|
47,465 | 50,666 | ||||||
|
Other
|
51,305 | 62,932 | ||||||
|
Total
|
$ | 19,275,376 | $ | 18,006,995 | ||||
|
(1)
|
Includes $32 million of goodwill.
|
|
(2)
|
Includes $33 million of goodwill.
|
|
(3)
|
Includes $7 million of goodwill.
|
|
Item 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
·
|
Our Private Client Group segment generated record net revenues of $566 million, a 2% increase over the prior year. Pre-tax income of $46 million approximated the prior year level. The increase in net revenues, including an increase in the portion which we consider being recurring, was more than offset by increases in non-interest expenses.
|
|
·
|
Our Asset Management segment generated $17 million of pre-tax income, a $1 million, or a 9% increase over the prior year level. Assets under management increased to record high levels as of March 31, 2012. Net inflows of client assets drove the increase as market values increased only marginally as compared to the prior year quarter end.
|
|
·
|
RJ Bank generated a $15 million, or 36%, increase in pre-tax income to a record $57 million. The increase primarily resulted from an increase in net interest revenues from higher average loan balances and an increase in net interest spread and to a lesser extent, a lower loan loss provision resulting from improved credit quality as compared to the prior year.
|
|
·
|
We incurred acquisition related costs associated with our acquisition of Morgan Keegan of $19.6 million, plus an incremental $1.7 million of interest expense we incurred as we executed senior debt offerings during the quarter to fund the April 2, 2012 closing.
|
|
·
|
The $12 million, or 35%, decrease in the pre-tax income of our Capital Markets segment resulted from lower investment banking revenues in the current quarter than in the strong prior year quarter. Results were also significantly impacted by decreases in equity institutional sales commissions resulting from this quarter’s less active new issue markets, which were only partially offset by increases in institutional fixed income commissions.
|
|
·
|
The $8 million, or 193%, increase in the pre-tax income (after consideration of the attribution to noncontrolling interests) generated by our Proprietary Capital segment was primarily driven by an increase in the valuation of one of our investments.
|
|
·
|
Our effective tax rate applicable to the quarter increased to 38.2% from the rate applicable in the prior year quarter of 35.9%, primarily resulting from an increase in the average state tax rate component of this blended rate, and the effect of relatively consistent non-deductible expenses coupled with lower pre-tax earnings.
|
|
·
|
A $22 million, or 24%, increase in the pre-tax income generated by RJ Bank.
|
|
·
|
A $26 million, or 45%, decrease in the pre-tax income of our Capital Markets segment.
|
|
·
|
A $6 million, or 6%, decrease in the pre-tax income of our Private Client Group segment resulting from increased non-interest expenses.
|
|
·
|
A $5 million decrease in the pre-tax income of our Emerging Markets segment. Net revenues in this segment decreased by $7 million, or 36%, due to a decrease in investment banking revenues caused in part by the volatility in the global markets.
|
|
·
|
A $2 million, or 5%, increase in the pre-tax income generated by our Asset Management segment.
|
|
·
|
An $8 million, or 188%, increase in the pre-tax income (after consideration of the attribution to noncontrolling interests) generated by our Proprietary Capital segment
|
|
·
|
Our effective tax rate increased to 38.7% from the rate applicable in the prior period of 36.7%, primarily resulting from an increase in the average state tax rate component of this blended rate, and the effect of relatively consistent non-deductible expenses coupled with lower pre-tax earnings.
|
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
2011
|
% change
|
2012
|
2011
|
% change
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Total company
|
||||||||||||||||||||||||
|
Revenues
|
$ | 889,853 | $ | 866,744 | 3 | % | $ | 1,688,670 | $ | 1,697,077 | - | |||||||||||||
|
Pre-tax income excluding noncontrolling interests
|
111,497 | 126,237 | (12 | )% | 222,348 | 256,751 | (13 | )% | ||||||||||||||||
|
PCG
|
||||||||||||||||||||||||
|
Revenues
|
567,766 | 556,632 | 2 | % | 1,096,384 | 1,076,063 | 2 | % | ||||||||||||||||
|
Pre-tax income
|
46,249 | 45,990 | 1 | % | 95,657 | 101,730 | (6 | )% | ||||||||||||||||
|
Capital Markets
|
||||||||||||||||||||||||
|
Revenues
|
165,126 | 177,409 | (7 | )% | 301,291 | 350,435 | (14 | )% | ||||||||||||||||
|
Pre-tax income
|
22,012 | 33,689 | (35 | )% | 32,013 | 58,335 | (45 | )% | ||||||||||||||||
|
Asset Management
|
||||||||||||||||||||||||
|
Revenues
|
58,217 | 55,341 | 5 | % | 115,012 | 110,928 | 4 | % | ||||||||||||||||
|
Pre-tax income
|
16,621 | 15,227 | 9 | % | 32,434 | 30,821 | 5 | % | ||||||||||||||||
|
RJ Bank
|
||||||||||||||||||||||||
|
Revenues
|
83,136 | 69,099 | 20 | % | 160,552 | 146,540 | 10 | % | ||||||||||||||||
|
Pre-tax income
|
57,313 | 42,256 | 36 | % | 110,316 | 88,720 | 24 | % | ||||||||||||||||
|
Emerging Markets
|
||||||||||||||||||||||||
|
Revenues
|
8,527 | 11,962 | (29 | )% | 13,179 | 20,551 | (36 | )% | ||||||||||||||||
|
Pre-tax (loss) income
|
(999 | ) | 1,192 | (184 | )% | (3,548 | ) | 1,513 | (335 | )% | ||||||||||||||
|
Securities Lending
|
||||||||||||||||||||||||
|
Revenues
|
2,733 | 1,479 | 85 | % | 5,175 | 3,229 | 60 | % | ||||||||||||||||
|
Pre-tax income
|
1,430 | 330 | 333 | % | 2,636 | 854 | 209 | % | ||||||||||||||||
|
Proprietary Capital
|
||||||||||||||||||||||||
|
Revenues
|
13,390 | (275 | ) |
NM
|
13,863 | 395 |
NM
|
|||||||||||||||||
|
Pre-tax income (loss)
|
3,741 | (4,032 | ) | 193 | % | 3,676 | (4,174 | ) | 188 | % | ||||||||||||||
|
Other
|
||||||||||||||||||||||||
|
Revenues
|
3,270 | 3,574 | (9 | )% | 5,931 | 6,977 | (15 | )% | ||||||||||||||||
|
Pre-tax loss
|
(34,870 | ) | (8,415 | ) | (314 | )% | (50,836 | ) | (21,048 | ) | (142 | )% | ||||||||||||
|
Intersegment eliminations
|
||||||||||||||||||||||||
|
Revenues
|
(12,312 | ) | (8,477 | ) | (45 | )% | (22,717 | ) | (18,041 | ) | (26 | )% | ||||||||||||
|
Three months ended March 31,
|
||||||||||||||||||||||||
|
2012
|
2011
|
|||||||||||||||||||||||
|
Average
Balance
(1)
|
Interest
inc./exp.
|
Average
yield/cost
|
Average
Balance
(1)
|
Interest
inc./exp.
|
Average
yield/cost
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Margin balances
|
$ | 1,506,662 | $ | 13,252 | 3.53 | % | $ | 1,475,124 | $ | 12,648 | 3.48 | % | ||||||||||||
|
Assets segregated pursuant to regulations and other segregated assets
|
3,266,842 | 2,185 | 0.27 | % | 1,987,364 | 2,089 | 0.43 | % | ||||||||||||||||
|
Bank loans, net of unearned income
(2)
|
7,243,186 | 77,587 | 4.25 | % | 6,227,876 | 66,381 | 4.26 | % | ||||||||||||||||
|
Available for sale securities
|
560,688 | 2,093 | 1.50 | % | 410,061 | 2,890 | 2.86 | % | ||||||||||||||||
|
Trading instruments
(3)
|
551,357 | 4,062 | 2.96 | % | 630,514 | 5,985 | 3.81 | % | ||||||||||||||||
|
Stock loan
|
658,594 | 2,633 | 1.60 | % | 541,643 | 1,369 | 1.01 | % | ||||||||||||||||
|
Other
(3)
|
2,489,709 | 7,040 | 1.14 | % | 1,825,050 | 5,449 | 1.20 | % | ||||||||||||||||
|
Total interest income
|
$ | 16,277,038 | 108,852 | 2.69 | % | $ | 13,097,632 | $ | 96,811 | 2.97 | % | |||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Brokerage client liabilities
|
$ | 4,523,280 | 574 | 0.05 | % | $ | 3,352,592 | $ | 840 | 0.10 | % | |||||||||||||
|
Bank deposits
(2)
|
7,710,066 | 2,337 | 0.12 | % | 6,727,510 | 3,340 | 0.20 | % | ||||||||||||||||
|
Trading instruments sold but not yet purchased
(3)
|
106,966 | 476 | 1.79 | % | 154,336 | 1,074 | 2.79 | % | ||||||||||||||||
|
Stock borrow
|
186,681 | 491 | 1.05 | % | 214,949 | 400 | 0.74 | % | ||||||||||||||||
|
Borrowed funds
|
177,519 | 822 | 1.86 | % | 118,322 | 924 | 3.13 | % | ||||||||||||||||
|
Senior notes
|
662,120 | 11,046 | 6.71 | % | 299,957 | 6,523 | 8.60 | % | ||||||||||||||||
|
Loans payable of consolidated variable interest entities
(3)
|
90,088 | 1,356 | 6.05 | % | 107,952 | 1,578 | 5.86 | % | ||||||||||||||||
|
Other
(3)
|
141,994 | 814 | 2.31 | % | 49,675 | 8 | 0.06 | % | ||||||||||||||||
|
Total interest expense
|
$ | 13,598,714 | 17,916 | 0.53 | % | $ | 11,025,293 | 14,687 | 0.54 | % | ||||||||||||||
|
Net interest income
|
$ | 90,936 | $ | 82,124 | ||||||||||||||||||||
|
(1)
|
Represents average daily balance, unless otherwise noted.
|
|
(2)
|
See Results of Operations – RJ Bank in this MD&A for further information.
|
|
(3)
|
Average balance is calculated based on the average of the end of month balances for each month within the period.
|
|
Six months ended March 31,
|
||||||||||||||||||||||||
|
2012
|
2011
|
|||||||||||||||||||||||
|
Average
Balance
(1)
|
Interest
inc./exp.
|
Average
yield/cost
|
Average
Balance
(1)
|
Interest
inc./exp.
|
Average
yield/cost
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||||||||||
|
Margin balances
|
$ | 1,516,408 | $ | 26,954 | 3.55 | % | $ | 1,471,132 | $ | 25,407 | 3.46 | % | ||||||||||||
|
Assets segregated pursuant to regulations and other segregated assets
|
3,265,741 | 4,384 | 0.27 | % | 1,881,697 | 4,075 | 0.43 | % | ||||||||||||||||
|
Bank loans, net of unearned income
(2)
|
7,085,444 | 149,609 | 4.17 | % | 6,201,056 | 140,585 | 4.40 | % | ||||||||||||||||
|
Available for sale securities
|
549,421 | 4,183 | 1.52 | % | 432,318 | 6,446 | 2.99 | % | ||||||||||||||||
|
Trading instruments
(3)
|
579,852 | 8,141 | 2.80 | % | 628,899 | 11,313 | 3.59 | % | ||||||||||||||||
|
Stock loan
|
697,832 | 5,021 | 1.44 | % | 572,388 | 2,965 | 1.04 | % | ||||||||||||||||
|
Other
(3)
|
2,562,989 | 12,656 | 0.98 | % | 1,721,108 | 10,406 | 1.21 | % | ||||||||||||||||
|
Total interest income
|
$ | 16,257,687 | 210,948 | 2.60 | % | $ | 12,908,598 | 201,197 | 3.28 | % | ||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Brokerage client liabilities
|
4,504,363 | 1,183 | 0.05 | % | 3,171,554 | 1,734 | 0.11 | % | ||||||||||||||||
|
Bank deposits
(2)
|
7,804,209 | 4,580 | 0.12 | % | 6,635,251 | 6,757 | 0.20 | % | ||||||||||||||||
|
Trading instruments sold but not yet purchased
(3)
|
117,928 | 999 | 1.69 | % | 174,739 | 1,901 | 2.17 | % | ||||||||||||||||
|
Stock borrow
|
189,690 | 951 | 1.00 | % | 220,797 | 909 | 0.82 | % | ||||||||||||||||
|
Borrowed funds
|
202,464 | 1,792 | 1.77 | % | 121,542 | 2,294 | 3.76 | % | ||||||||||||||||
|
Senior notes
|
605,513 | 20,353 | 6.72 | % | 299,957 | 13,046 | 8.60 | % | ||||||||||||||||
|
Loans payable of consolidated variable interest entities
(3)
|
93,314 | 2,661 | 5.70 | % | 97,370 | 3,133 | 6.42 | % | ||||||||||||||||
|
Other
(3)
|
170,179 | 1,437 | 1.69 | % | 73,726 | 1,417 | 3.83 | % | ||||||||||||||||
|
Total interest expense
|
$ | 13,687,660 | 33,956 | 0.50 | % | $ | 10,794,936 | 31,191 | 0.58 | % | ||||||||||||||
|
Net interest income
|
$ | 176,992 | $ | 170,006 | ||||||||||||||||||||
|
(1)
|
Represents average daily balance, unless otherwise noted.
|
|
(2)
|
See Results of Operations – RJ Bank in this MD&A for further information.
|
|
(3)
|
Average balance is calculated based on the average of the end of month balances for each month within the period.
|
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
% change
|
2011
|
2012
|
% change
|
2011
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||
|
Securities commissions and fees
|
$ | 468,663 | 1 | % | $ | 465,670 | $ | 901,366 | 1 | % | $ | 896,601 | ||||||||||||
|
Interest
|
20,213 | 10 | % | 18,413 | 39,657 | 8 | % | 36,644 | ||||||||||||||||
|
Account and service fees:
|
||||||||||||||||||||||||
|
Client account and service fees
|
33,192 | 12 | % | 29,579 | 64,603 | 5 | % | 61,528 | ||||||||||||||||
|
Mutual fund and annuity service fees
|
31,897 | 20 | % | 26,654 | 63,890 | 25 | % | 51,164 | ||||||||||||||||
|
Client transaction fees
|
7,131 | (24 | )% | 9,382 | 13,986 | (25 | )% | 18,694 | ||||||||||||||||
|
Correspondent clearing fees
|
784 | (9 | )% | 859 | 1,491 | (17 | )% | 1,794 | ||||||||||||||||
|
Account and service fees – all other
|
67 | 29 | % | 52 | 112 | 19 | % | 94 | ||||||||||||||||
|
Sub-total account and service fees
|
73,071 | 10 | % | 66,526 | 144,082 | 8 | % | 133,274 | ||||||||||||||||
|
Other
|
5,819 | (3 | )% | 6,023 | 11,279 | 18 | % | 9,544 | ||||||||||||||||
|
Total revenues
|
567,766 | 2 | % | 556,632 | 1,096,384 | 2 | % | 1,076,063 | ||||||||||||||||
|
Interest expense
|
1,829 | - | 1,837 | 3,754 | (16 | )% | 4,479 | |||||||||||||||||
|
Net revenues
|
565,937 | 2 | % | 554,795 | 1,092,630 | 2 | % | 1,071,584 | ||||||||||||||||
|
Non-interest expenses:
|
||||||||||||||||||||||||
|
Sales commissions
|
349,969 | 1 | % | 345,271 | 669,006 | 1 | % | 660,210 | ||||||||||||||||
|
Admin & incentive compensation and benefit costs
|
95,280 | 8 | % | 87,996 | 183,912 | 8 | % | 169,866 | ||||||||||||||||
|
Communications and information processing
|
24,947 | 30 | % | 19,216 | 44,745 | 29 | % | 34,762 | ||||||||||||||||
|
Occupancy and equipment
|
18,999 | (2 | )% | 19,467 | 36,697 | (4 | )% | 38,250 | ||||||||||||||||
|
Business development
|
14,841 | 12 | % | 13,259 | 28,630 | 6 | % | 27,065 | ||||||||||||||||
|
Clearance and other
|
15,652 | (34 | )% | 23,746 | 33,983 | (15 | )% | 39,923 | ||||||||||||||||
|
Total non-interest expenses
|
519,688 | 2 | % | 508,955 | 996,973 | 3 | % | 970,076 | ||||||||||||||||
|
Income before taxes and including noncontrolling interests
|
46,249 | 1 | % | 45,840 | 95,657 | (6 | )% | 101,508 | ||||||||||||||||
|
Noncontrolling
interests
|
- | (150 | ) | - | (222 | ) | ||||||||||||||||||
|
Pre-tax income excluding noncontrolling interests
|
$ | 46,249 | 1 | % | $ | 45,990 | $ | 95,657 | (6 | )% | $ | 101,730 | ||||||||||||
|
Margin on net revenues
|
8.2 | % | 8.3 | % | 8.8 | % | 9.5 | % | ||||||||||||||||
|
Employee
|
Independent
contractors
|
Investment
advisor
representatives
(1)
|
March 31,
2012
Total
|
March 31,
2011
Total
|
||
|
Private Client Group:
|
||||||
|
Raymond James & Associates (“RJ&A”)
|
1,327
|
-
|
-
|
1,327
|
1,276
|
|
|
Raymond James Financial Services, Inc. (“RJFS”)
|
-
|
3,205
|
243
|
3,448
|
3,470
|
|
|
Raymond James Limited (“RJ Ltd.”)
|
199
|
259
|
-
|
458
|
443
|
|
|
Raymond James Investment Services Limited (“RJIS”)
|
-
|
64
|
101
|
165
|
151
|
|
|
Total financial advisors and investment advisor representatives
|
1,526
|
3,528
|
344
|
5,398
|
5,340
|
|
Employee
|
Independent
contractors
|
Investment
advisor representatives
(1)
|
September 30,
2011
Total
|
|
|
Private Client Group:
|
||||
|
RJ&A
|
1,311
|
-
|
-
|
1,311
|
|
RJFS
|
-
|
3,193
|
237
|
3,430
|
|
RJ Ltd.
|
198
|
254
|
-
|
452
|
|
RJIS
|
-
|
61
|
96
|
157
|
|
Total financial advisors and investment advisor representatives
|
1,509
|
3,508
|
333
|
5,350
|
|
(1)
|
Investment advisor representatives with custody only relationships.
|
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
% change
|
2011
|
2012
|
% change
|
2011
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||
|
Institutional sales commissions:
|
||||||||||||||||||||||||
|
Equity
|
$ | 55,879 | (19 | )% | $ | 69,124 | $ | 105,236 | (23 | )% | $ | 137,213 | ||||||||||||
|
Fixed income
|
35,984 | 20 | % | 30,056 | 67,496 | 3 | % | 65,708 | ||||||||||||||||
|
Underwriting fees
|
23,014 | (21 | )% | 29,097 | 37,489 | (42 | )% | 64,969 | ||||||||||||||||
|
Tax credit funds syndication fees
|
11,202 | 87 | % | 6,003 | 15,677 | 54 | % | 10,196 | ||||||||||||||||
|
Mergers & acquisitions fees
|
17,438 | (21 | )% | 22,013 | 35,869 | (8 | )% | 38,908 | ||||||||||||||||
|
Private placement fees
|
1,903 |
NM
|
75 | 3,821 |
NM
|
215 | ||||||||||||||||||
|
Trading profits
|
10,248 | (22 | )% | 13,063 | 17,381 | 1 | % | 17,232 | ||||||||||||||||
|
Interest
|
4,319 | (30 | )% | 6,162 | 8,666 | (26 | )% | 11,659 | ||||||||||||||||
|
Other
|
5,139 | 183 | % | 1,816 | 9,656 | 123 | % | 4,335 | ||||||||||||||||
|
Total revenues
|
165,126 | (7 | )% | 177,409 | 301,291 | (14 | )% | 350,435 | ||||||||||||||||
|
Interest expense
|
3,342 | (21 | )% | 4,250 | 6,492 | (21 | )% | 8,230 | ||||||||||||||||
|
Net revenues
|
161,784 | (7 | )% | 173,159 | 294,799 | (14 | )% | 342,205 | ||||||||||||||||
|
Non-interest expenses:
|
||||||||||||||||||||||||
|
Sales commissions
|
30,711 | (6 | )% | 32,824 | 58,699 | (17 | )% | 70,494 | ||||||||||||||||
|
Admin & incentive compensation and benefit costs
|
81,116 | 5 | % | 76,910 | 148,984 | (5 | )% | 156,664 | ||||||||||||||||
|
Communications and information processing
|
12,151 | 12 | % | 10,879 | 24,182 | 14 | % | 21,241 | ||||||||||||||||
|
Occupancy and equipment
|
6,332 | 18 | % | 5,368 | 12,414 | 17 | % | 10,610 | ||||||||||||||||
|
Business development
|
7,846 | 3 | % | 7,627 | 16,086 | 5 | % | 15,367 | ||||||||||||||||
|
Clearance and other
|
14,534 | 31 | % | 11,136 | 22,147 | 12 | % | 19,861 | ||||||||||||||||
|
Total non-interest expenses
|
152,690 | 5 | % | 144,744 | 282,512 | (4 | )% | 294,237 | ||||||||||||||||
|
Income before taxes and including noncontrolling interests
|
9,094 | (68 | )% | 28,415 | 12,287 | (74 | )% | 47,968 | ||||||||||||||||
|
Noncontrolling interests
|
(12,918 | ) | (5,274 | ) | (19,726 | ) | (10,367 | ) | ||||||||||||||||
|
Pre-tax income excluding noncontrolling interests
|
$ | 22,012 | (35 | )% | $ | 33,689 | $ | 32,013 | (45 | )% | $ | 58,335 | ||||||||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
% change
|
2011
|
2012
|
% change
|
2011
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||
|
Investment advisory fees
|
$ | 48,538 | 8 | % | $ | 45,088 | $ | 96,055 | 6 | % | $ | 91,010 | ||||||||||||
|
Other
|
9,679 | (6 | )% | 10,253 | 18,957 | (5 | )% | 19,918 | ||||||||||||||||
|
Total revenues
|
58,217 | 5 | % | 55,341 | 115,012 | 4 | % | 110,928 | ||||||||||||||||
|
Expenses:
|
||||||||||||||||||||||||
|
Administrative and incentive compensation and benefit costs
|
20,317 | 6 | % | 19,164 | 40,302 | 4 | % | 38,656 | ||||||||||||||||
|
Communications and information processing
|
4,165 | 4 | % | 4,007 | 7,967 | 3 | % | 7,717 | ||||||||||||||||
|
Occupancy and equipment
|
817 | (14 | )% | 951 | 1,738 | (11 | )% | 1,960 | ||||||||||||||||
|
Business development
|
1,660 | (8 | )% | 1,797 | 3,540 | (3 | )% | 3,654 | ||||||||||||||||
|
Investment sub-advisory fees
|
6,509 | (4 | )% | 6,782 | 12,681 | (4 | )% | 13,165 | ||||||||||||||||
|
Other
|
7,980 | 10 | % | 7,263 | 15,746 | 15 | % | 13,729 | ||||||||||||||||
|
Total expenses
|
41,448 | 4 | % | 39,964 | 81,974 | 4 | % | 78,881 | ||||||||||||||||
|
Income before taxes and including noncontrolling interests
|
16,769 | 9 | % | 15,377 | 33,038 | 3 | % | 32,047 | ||||||||||||||||
|
Noncontrolling interests
|
148 | 150 | 604 | 1,226 | ||||||||||||||||||||
|
Pre-tax income excluding
noncontrolling interests
|
$ | 16,621 | 9 | % | $ | 15,227 | $ | 32,434 | 5 | % | $ | 30,821 | ||||||||||||
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
March 31,
2011
|
December 31,
2010
|
September 30,
2010
|
|||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||
|
Assets under management:
|
||||||||||||||||||||||||
|
Eagle Asset Management, Inc.
|
$ | 20,400 | $ | 17,828 | $ | 16,092 | $ | 18,514 | $ | 17,546 | $ | 15,567 | ||||||||||||
|
Raymond James Consulting Services
|
9,121 | 8,634 | 8,356 | 9,088 | 8,791 | 8,458 | ||||||||||||||||||
|
Unified Managed Accounts
|
2,486 | 2,054 | 1,677 | 1,372 | 978 | 735 | ||||||||||||||||||
|
Freedom Accounts & other managed programs
|
11,168 | 10,115 | 9,523 | 10,348 | 9,628 | 8,791 | ||||||||||||||||||
|
Total assets under management
|
43,175 | 38,631 | 35,648 | 39,322 | 36,943 | 33,551 | ||||||||||||||||||
|
Less: Assets managed for affiliated entities
|
(3,864 | ) | (3,703 | ) | (3,579 | ) | (3,685 | ) | (3,580 | ) | (3,544 | ) | ||||||||||||
|
Net assets under management
|
$ | 39,311 | $ | 34,928 | $ | 32,069 | $ | 35,637 | $ | 33,363 | $ | 30,007 | ||||||||||||
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
March 31,
2011
|
December 31,
2010
|
September 30,
2010
|
|||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||
|
Passport
|
$ | 27,760 | $ | 25,371 | $ | 24,008 | $ | 25,384 | $ | 24,006 | $ | 22,708 | ||||||||||||
|
Ambassador
|
16,310 | 14,573 | 13,555 | 13,013 | 11,655 | 10,479 | ||||||||||||||||||
|
Other non-managed fee-based assets
|
2,627 | 2,369 | 2,196 | 2,439 | 2,177 | 2,023 | ||||||||||||||||||
|
Total
|
$ | 46,697 | $ | 42,313 | $ | 39,759 | $ | 40,836 | $ | 37,838 | $ | 35,210 | ||||||||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
% change
|
2011
|
2012
|
% change
|
2011
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||
|
Interest income
|
$ | 80,581 | 15 | % | $ | 70,249 | $ | 155,674 | 5 | % | $ | 148,561 | ||||||||||||
|
Interest expense
|
2,343 | (32 | )% | 3,463 | 4,707 | (37 | )% | 7,422 | ||||||||||||||||
|
Net interest income
|
78,238 | 17 | % | 66,786 | 150,967 | 7 | % | 141,139 | ||||||||||||||||
|
Other (loss) income
|
2,555 | 322 | % | (1,150 | ) | 4,878 | 341 | % | (2,021 | ) | ||||||||||||||
|
Net revenues
|
80,793 | 23 | % | 65,636 | 155,845 | 12 | % | 139,118 | ||||||||||||||||
|
Non-interest expenses:
|
||||||||||||||||||||||||
|
Employee compensation and benefits
|
4,419 | 22 | % | 3,636 | 8,599 | 17 | % | 7,370 | ||||||||||||||||
|
Communications and information processing
|
677 | 18 | % | 572 | 1,431 | 41 | % | 1,016 | ||||||||||||||||
|
Occupancy and equipment
|
211 | - | 210 | 382 | (3 | )% | 392 | |||||||||||||||||
|
Provision for loan losses
|
5,154 | (40 | )% | 8,637 | 12,610 | (37 | )% | 19,869 | ||||||||||||||||
|
FDIC insurance premiums
|
1,297 | (51 | )% | 2,623 | 2,483 | (54 | )% | 5,454 | ||||||||||||||||
|
Affiliate deposit account servicing fees
|
6,551 | 52 | % | 4,307 | 12,319 | 23 | % | 10,014 | ||||||||||||||||
|
Other
|
5,171 | 52 | % | 3,395 | 7,705 | 23 | % | 6,283 | ||||||||||||||||
|
Total non-interest expenses
|
23,480 | - | 23,380 | 45,529 | (10 | )% | 50,398 | |||||||||||||||||
|
Pre-tax income
|
$ | 57,313 | 36 | % | $ | 42,256 | $ | 110,316 | 24 | % | $ | 88,720 | ||||||||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Net loan (charge-offs)/recoveries:
|
||||||||||||||||
|
C&I loans
|
$ | (2,068 | ) | $ | ( 82 | ) | $ | (5,217 | ) | $ | (82 | ) | ||||
|
CRE loans
|
(882 | ) | (3,302 | ) | (452 | ) | (9,651 | ) | ||||||||
|
Residential/mortgage loans
|
(5,107 | ) | (5,123 | ) | (8,052 | ) | (11,066 | ) | ||||||||
|
Consumer loans
|
5 | (39 | ) | (28 | ) | (39 | ) | |||||||||
|
Total
|
$ | (8,052 | ) | $ | (8,546 | ) | $ | (13,749 | ) | $ | (20,838 | ) | ||||
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Allowance for loan losses:
|
||||||||
|
Loans held for sale
|
$ | - | $ | 5 | ||||
|
Loans held for investment:
|
||||||||
|
C&I loans
|
84,300 | 81,267 | ||||||
|
CRE construction loans
|
749 | 490 | ||||||
|
CRE loans
|
26,835 | 30,752 | ||||||
|
Residential/mortgage loans
|
32,742 | 33,210 | ||||||
|
Consumer loans
|
52 | 20 | ||||||
|
Total
|
$ | 144,678 | $ | 145,744 | ||||
|
Nonperforming assets:
|
||||||||
|
Nonperforming loans:
|
||||||||
|
C&I loans
|
$ | 6,230 | $ | 25,685 | ||||
|
CRE loans
|
9,441 | 15,842 | ||||||
|
Residential mortgage loans:
|
||||||||
|
Residential mortgage loans
|
86,970 | 91,682 | ||||||
|
Home equity loans/lines
|
171 | 114 | ||||||
|
Total nonperforming loans
|
102,812 | 133,323 | ||||||
|
Other real estate owned:
|
||||||||
|
CRE
|
6,178 | 7,707 | ||||||
|
Residential:
|
||||||||
|
First mortgage
|
7,792 | 6,852 | ||||||
|
Home equity
|
13 | 13 | ||||||
|
Total other real estate owned
|
13,983 | 14,572 | ||||||
|
Total nonperforming assets
|
$ | 116,795 | $ | 147,895 | ||||
|
March 31,
2012
|
September 30,
2011
|
|||||||
|
(in thousands)
|
||||||||
|
Total loans:
|
||||||||
|
Loans held for sale, net
(1)
|
$ | 99,255 | $ | 102,236 | ||||
|
Loans held for investment:
|
||||||||
|
C&I loans
|
4,820,364 | 4,100,939 | ||||||
|
CRE construction loans
|
50,010 | 29,087 | ||||||
|
CRE loans
|
937,570 | 742,889 | ||||||
|
Residential/mortgage loans
|
1,726,132 | 1,756,486 | ||||||
|
Consumer loans
|
40,553 | 7,438 | ||||||
|
Net unearned income and deferred expenses
|
(83,378 | ) | (45,417 | ) | ||||
|
Total loans held for investment
|
7,491,251 | 6,591,422 | ||||||
|
Total loans
|
$ | 7,590,506 | $ | 6,693,658 | ||||
|
(1)
|
Net of unearned income and deferred expenses.
|
|
Three months ended March 31,
|
||||||||||||||||||||||||
|
2012
|
2011
|
|||||||||||||||||||||||
|
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Interest-earning banking assets:
|
||||||||||||||||||||||||
|
Loans, net of unearned income
(1)
|
|
|||||||||||||||||||||||
|
Loans held for sale
|
$ | 94,485 | $ | 503 | 2.14 | % | $ | 31,063 | $ | 223 | 2.90 | % | ||||||||||||
|
Loans held for investment
|
||||||||||||||||||||||||
|
C&I loans
|
4,566,963 | 53,848 | 4.68 | % | 3,432,915 | 38,673 | 4.51 | % | ||||||||||||||||
|
CRE construction loans
|
35,038 | 949 | 10.71 | % | 60,979 | 583 | 3.82 | % | ||||||||||||||||
|
CRE loans
|
785,005 | 8,083 | 4.07 | % | 801,865 | 7,957 | 3.97 | % | ||||||||||||||||
|
Residential mortgage loans
|
1,738,903 | 14,053 | 3.20 | % | 1,894,877 | 18,919 | 3.99 | % | ||||||||||||||||
|
Consumer loans
|
22,792 | 151 | 2.65 | % | 6,177 | 26 | 1.73 | % | ||||||||||||||||
|
Total loans, net
|
7,243,186 | 77,587 | 4.25 | % | 6,227,876 | 66,381 | 4.26 | % | ||||||||||||||||
|
Agency mortgage-backed securities (“MBS”)
|
203,938 | 419 | 0.82 | % | 187,211 | 358 | 0.77 | % | ||||||||||||||||
|
Non-agency CMOs
|
183,253 | 1,425 | 3.11 | % | 222,851 | 2,523 | 4.53 | % | ||||||||||||||||
|
Money market funds, cash and cash equivalents
|
964,383 | 568 | 0.24 | % | 783,715 | 567 | 0.29 | % | ||||||||||||||||
|
Federal Home Loan Bank (“FHLB”) stock and other
|
131,673 | 582 | 1.77 | % | 146,816 | 420 | 1.16 | % | ||||||||||||||||
|
Total interest-earning banking assets
|
8,726,433 | $ | 80,581 | 3.66 | % | 7,568,469 | $ | 70,249 | 3.71 | % | ||||||||||||||
|
Non-interest-earning banking assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(144,774 | ) | (144,872 | ) | ||||||||||||||||||||
|
Unrealized loss on available for sale securities
|
(44,354 | ) | (40,318 | ) | ||||||||||||||||||||
|
Other assets
|
243,039 | 241,318 | ||||||||||||||||||||||
|
Total non-interest-earning banking assets
|
53,911 | 56,128 | ||||||||||||||||||||||
|
Total banking assets
|
$ | 8,780,344 | $ | 7,624,597 | ||||||||||||||||||||
|
Interest-bearing banking liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Certificates of deposit
|
$ | 298,447 | $ | 1,633 | 2.19 | % | $ | 220,037 | $ | 1,541 | 2.84 | % | ||||||||||||
|
Money market, savings, and NOW accounts
(2)
|
7,411,619 | 704 | 0.04 | % | 6,507,473 | 1,799 | 0.11 | % | ||||||||||||||||
|
FHLB advances and other
|
31,905 1 | 6 | 0.07 | % | 13,692 | 123 | 3.61 | % | ||||||||||||||||
|
Total interest-bearing banking liabilities
|
7,741,971 | $ | 2,343 | 0.12 | % | 6,741,202 | $ | 3,463 | 0.21 | % | ||||||||||||||
|
Non-interest-bearing banking liabilities
|
62,511 | 58,276 | ||||||||||||||||||||||
|
Total banking liabilities
|
7,804,482 | 6,799,478 | ||||||||||||||||||||||
|
Total banking shareholder’s equity
|
975,862 | 825,119 | ||||||||||||||||||||||
|
Total banking liabilities and shareholders’ equity
|
$ | 8,780,344 | $ | 7,624,597 | ||||||||||||||||||||
|
(continued on next page)
|
||||||||||||||||||||||||
|
Three months ended March 31,
|
||||||||||||||||||||||||
|
2012
|
2011
|
|||||||||||||||||||||||
|
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
(continued from previous page)
|
||||||||||||||||||||||||
|
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
$ | 984,462 | $ | 78,238 | $ | 827,267 | $ | 66,786 | ||||||||||||||||
|
Bank net interest:
:
|
||||||||||||||||||||||||
|
Spread
|
3.54 | % (3) | 3.48 | % | ||||||||||||||||||||
|
Margin (net yield on interest-earning banking assets)
|
3.55 | % (3) | 3.50 | % | ||||||||||||||||||||
|
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
112.72 | % | 111.65 | % | ||||||||||||||||||||
|
Return on average:
|
||||||||||||||||||||||||
|
Total banking assets
|
1.65 | % | 1.04 | % | ||||||||||||||||||||
|
Total banking shareholder's equity
|
14.83 | % | 9.93 | % | ||||||||||||||||||||
|
Average equity to average total banking assets
|
11.11 | % | 10.45 | % | ||||||||||||||||||||
|
(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 three months ended March 31, 2012 and 2011 was $12 million and $10 million, respectively.
|
|
(2)
|
Negotiable Order of Withdrawal (“NOW”) account.
|
|
(3)
|
Excluding the impact of excess RJBDP deposits held during the three month period ended March 31, 2012, the net interest spread and margin was 3.75% and 3.76% at March 31, 2012, respectively. These deposits arose from higher cash balances in firm client accounts due to the market volatility, thus exceeding the RJBDP capacity at outside financial institutions in the program. These deposits were invested in short term liquid investments producing very little net interest spread.
|
|
Three months ended March 31,
|
||||||||||||
|
2012 compared to 2011
|
||||||||||||
|
Increase (decrease) due to
|
||||||||||||
|
Volume
|
Rate
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||
|
Interest revenue:
|
||||||||||||
|
Interest-earning banking assets:
|
||||||||||||
|
Loans, net of unearned income:
|
||||||||||||
|
Loans held for sale
|
$ | 456 | $ | (176 | ) | $ | 280 | |||||
|
Loans held for investment
|
||||||||||||
|
C&I loans
|
12,775 | 2,400 | 15,175 | |||||||||
|
CRE construction loans
|
(248 | ) | 614 | 366 | ||||||||
|
CRE loans
|
(167 | ) | 293 | 126 | ||||||||
|
Residential mortgage loans
|
(1,557 | ) | (3,309 | ) | (4,866 | ) | ||||||
|
Consumer loans
|
70 | 55 | 125 | |||||||||
|
Agency MBS
|
32 | 29 | 61 | |||||||||
|
Non-agency CMOs
|
(449 | ) | (649 | ) | (1,098 | ) | ||||||
|
Money market funds, cash and cash equivalents
|
130 | (129 | ) | 1 | ||||||||
|
FHLB/Fed stock and other
|
(43 | ) | 205 | 162 | ||||||||
|
Total interest-earning banking assets
|
10,999 | (667 | ) | 10,332 | ||||||||
|
Interest expense:
|
||||||||||||
|
Interest-bearing banking liabilities:
|
||||||||||||
|
Deposits:
|
||||||||||||
|
Certificates of deposit
|
549 | (457 | ) | 92 | ||||||||
|
Money market, savings and NOW accounts
|
250 | (1,345 | ) | (1,095 | ) | |||||||
|
FHLB advances and other
|
164 | (281 | ) | (117 | ) | |||||||
|
Total interest-bearing banking liabilities
|
963 | (2,083 | ) | (1,120 | ) | |||||||
|
Change in net interest income
|
$ | 10,036 | $ | 1,416 | $ | 11,452 | ||||||
|
Six months ended March 31,
|
||||||||||||||||||||||||
|
2012
|
2011
|
|||||||||||||||||||||||
|
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Interest-earning banking assets:
|
||||||||||||||||||||||||
|
Loans, net of unearned income
(1)
|
|
|||||||||||||||||||||||
|
Loans held for sale
|
$ | 93,690 | $ | 893 | 1.90 | % | $ | 18,396 | $ | 313 | 3.41 | % | ||||||||||||
|
Loans held for investment
|
||||||||||||||||||||||||
|
C&I loans
|
4,431,728 | 104,284 | 4.66 | % | 3,354,755 | 76,618 | 4.54 | % | ||||||||||||||||
|
CRE construction loans
|
26,420 | 1,419 | 10.56 | % | 62,594 | 964 | 3.05 | % | ||||||||||||||||
|
CRE loans
|
770,002 | 13,566 | 3.47 | % | 821,688 | 16,197 | 3.90 | % | ||||||||||||||||
|
Residential mortgage loans
|
1,748,454 | 29,255 | 3.29 | % | 1,936,178 | 46,428 | 4.42 | % | ||||||||||||||||
|
Consumer loans
|
15,150 | 192 | 2.53 | % | 7,445 | 65 | 1.76 | % | ||||||||||||||||
|
Total loans, net
|
7,085,444 | 149,609 | 4.17 | % | 6,201,056 | 140,585 | 4.40 | % | ||||||||||||||||
|
Agency MBS
|
187,187 | 749 | 0.80 | % | 197,779 | 745 | 0.75 | % | ||||||||||||||||
|
Non-agency CMOs
|
186,779 | 2,940 | 3.15 | % | 234,539 | 5,692 | 4.85 | % | ||||||||||||||||
|
Money market funds, cash and cash equivalents
|
1,207,288 | 1,453 | 0.24 | % | 711,772 | 1,024 | 0.29 | % | ||||||||||||||||
|
FHLB stock and other
|
147,978 | 923 | 1.24 | % | 147,777 | 515 | 0.70 | % | ||||||||||||||||
|
Total interest-earning banking assets
|
8,814,676 | $ | 155,674 | 3.49 | % | 7,492,923 | $ | 148,561 | 3.85 | % | ||||||||||||||
|
Non-interest-earning banking assets:
|
||||||||||||||||||||||||
|
Allowance for loan losses
|
(146,546 | ) | (144,487 | ) | ||||||||||||||||||||
|
Unrealized loss on available for sale securities
|
(46,618 | ) | (43,936 | ) | ||||||||||||||||||||
|
Other assets
|
252,021 | 245,789 | ||||||||||||||||||||||
|
Total non-interest-earning banking assets
|
58,857 | 57,366 | ||||||||||||||||||||||
|
Total banking assets
|
$ | 8,873,533 | $ | 7,550,289 | ||||||||||||||||||||
|
Interest-bearing banking liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Certificates of deposit
|
$ | 279,002 | $ | 3,121 | 2.23 | % | $ | 218,707 | $ | 3,129 | 2.87 | % | ||||||||||||
|
Money market, savings, and NOW accounts
|
7,525,207 | 1,535 | 0.04 | % | 6,416,544 | 3,628 | 0.11 | % | ||||||||||||||||
|
FHLB advances and other
|
52,386 | 51 | 0.20 | % | 32,569 | 665 | 4.05 | % | ||||||||||||||||
|
Total interest-bearing banking liabilities
|
7,856,595 | $ | 4,707 | 0.12 | % | 6,667,820 | $ | 7,422 | 0.22 | % | ||||||||||||||
|
Non-interest-bearing banking liabilities
|
64,540 | 59,270 | ||||||||||||||||||||||
|
Total banking liabilities
|
7,921,135 | 6,727,090 | ||||||||||||||||||||||
|
Total banking shareholder’s equity
|
952,398 | 823,199 | ||||||||||||||||||||||
|
Total banking liabilities and shareholders’ equity
|
$ | 8,873,533 | $ | 7,550,289 | ||||||||||||||||||||
|
(continued on next page)
|
||||||||||||||||||||||||
|
Six months ended March 31,
|
||||||||||||||||||||||||
|
2012
|
2011
|
|||||||||||||||||||||||
|
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
Average
balance
|
Interest
inc./exp.
|
Average
yield/
cost
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
(continued from previous page)
|
||||||||||||||||||||||||
|
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
$ | 958,081 | $ | 150,967 | $ | 825,103 | $ | 141,139 | ||||||||||||||||
|
Bank net interest:
:
|
||||||||||||||||||||||||
|
Spread
|
3.37 | % (2) | 3.63 | % | ||||||||||||||||||||
|
Margin (net yield on interest-earning banking assets)
|
3.38 | % (2) | 3.65 | % | ||||||||||||||||||||
|
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
112.19 | % | 112.37 | % | ||||||||||||||||||||
|
Return on average:
|
||||||||||||||||||||||||
|
Total banking assets
|
1.56 | % | 1.48 | % | ||||||||||||||||||||
|
Total banking shareholder's equity
|
14.55 | % | 13.59 | % | ||||||||||||||||||||
|
Average equity to average total banking assets
|
10.73 | % | 10.90 | % | ||||||||||||||||||||
|
(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 six months ended March 31, 2012 and 2011 was $22 million in each respective period.
|
|
(2)
|
Excluding the impact of excess RJBDP deposits held during the six month period ended March 31, 2012, the net interest spread and margin was 3.67% and 3.68%, respectively. These deposits arose from higher cash balances in firm client accounts due to the market volatility, thus exceeding the RJBDP capacity at outside financial institutions in the program. These deposits were invested in short term liquid investments producing very little net interest spread.
|
|
Six months ended March 31,
|
||||||||||||
|
2012 compared to 2011
|
||||||||||||
|
Increase (decrease) due to
|
||||||||||||
|
Volume
|
Rate
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||
|
Interest revenue:
|
||||||||||||
|
Interest-earning banking assets:
|
||||||||||||
|
Loans, net of unearned income:
|
||||||||||||
|
Loans held for sale
|
$ | 1,281 | $ | (701 | ) | $ | 580 | |||||
|
Loans held for investment
|
||||||||||||
|
C&I loans
|
24,597 | 3,069 | 27,666 | |||||||||
|
CRE construction loans
|
(557 | ) | 1,012 | 455 | ||||||||
|
CRE loans
|
(1,019 | ) | (1,612 | ) | (2,631 | ) | ||||||
|
Residential mortgage loans
|
(4,501 | ) | (12,672 | ) | (17,173 | ) | ||||||
|
Consumer loans
|
68 | 59 | 127 | |||||||||
|
Agency MBS
|
(40 | ) | 44 | 4 | ||||||||
|
Non-agency CMOs
|
(1,159 | ) | (1,593 | ) | (2,752 | ) | ||||||
|
Money market funds, cash and cash equivalents
|
713 | (284 | ) | 429 | ||||||||
|
FHLB stock and other
|
1 | 407 | 408 | |||||||||
|
Total interest-earning banking assets
|
19,384 | (12,271 | ) | 7,113 | ||||||||
|
Interest expense:
|
||||||||||||
|
Interest-bearing banking liabilities:
|
||||||||||||
|
Deposits:
|
||||||||||||
|
Certificates of deposit
|
863 | (871 | ) | (8 | ) | |||||||
|
Money market, savings and NOW accounts
|
627 | (2,720 | ) | (2,093 | ) | |||||||
|
FHLB advances and other
|
405 | (1,019 | ) | (614 | ) | |||||||
|
Total interest-bearing banking liabilities
|
1,895 | (4,610 | ) | (2,715 | ) | |||||||
|
Change in net interest income
|
$ | 17,489 | $ | (7,661 | ) | $ | 9,828 | |||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
% change
|
2011
|
2012
|
% change
|
2011
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||
|
Securities commissions and fees
|
$ | 2,407 | (20 | )% | $ | 3,005 | $ | 4,714 | (29 | )% | $ | 6,674 | ||||||||||||
|
Investment banking
|
3,954 | (33 | )% | 5,943 | 3,998 | (49 | )% | 7,849 | ||||||||||||||||
|
Investment advisory fees
|
965 | (3 | )% | 993 | 1,918 | (4 | )% | 1,991 | ||||||||||||||||
|
Interest income
|
256 | (53 | )% | 543 | 402 | (45 | )% | 736 | ||||||||||||||||
|
Trading profits
|
978 | (34 | )% | 1,486 | 1,937 | (39 | )% | 3,163 | ||||||||||||||||
|
Other income
|
(33 | ) | (313 | )% | (8 | ) | 210 | 52 | % | 138 | ||||||||||||||
|
Total revenues
|
8,527 | (29 | )% | 11,962 | 13,179 | (36 | )% | 20,551 | ||||||||||||||||
|
Interest expense
|
8 | (84 | )% | 49 | 46 | (57 | )% | 108 | ||||||||||||||||
|
Net revenues
|
8,519 | (28 | )% | 11,913 | 13,133 | (36 | )% | 20,443 | ||||||||||||||||
|
Non-interest expenses:
|
||||||||||||||||||||||||
|
Compensation expense
|
7,046 | (3 | )% | 7,297 | 11,933 | (3 | )% | 12,260 | ||||||||||||||||
|
Other expense
|
2,418 | (26 | )% | 3,273 | 4,535 | (28 | )% | 6,275 | ||||||||||||||||
|
Total non-interest expenses
|
9,464 | (10 | )% | 10,570 | 16,468 | (11 | )% | 18,535 | ||||||||||||||||
|
(Loss) income before taxes and including noncontrolling interests:
|
(945 | ) | (170 | )% | 1,343 | (3,335 | ) | (275 | )% | 1,908 | ||||||||||||||
|
Noncontrolling interests
|
54 | 151 | 213 | 395 | ||||||||||||||||||||
|
Pre-tax (loss) income excluding
noncontrolling interests
|
$ | (999 | ) | (184 | )% | $ | 1,192 | $ | (3,548 | ) | (335 | )% | $ | 1,513 | ||||||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
% change
|
2011
|
2012
|
% change
|
2011
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Interest income and expense:
|
||||||||||||||||||||||||
|
Interest income
|
$ | 2,633 | 92 | % | $ | 1,369 | $ | 5,021 | 69 | % | $ | 2,965 | ||||||||||||
|
Interest expense
|
491 | 22 | % | 401 | 951 | 5 | % | 910 | ||||||||||||||||
|
Net interest income
|
2,142 | 121 | % | 968 | 4,070 | 98 | % | 2,055 | ||||||||||||||||
|
Other income
|
100 | (9 | )% | 110 | 154 | (42 | )% | 264 | ||||||||||||||||
|
Net revenues
|
2,242 | 108 | % | 1,078 | 4,224 | 82 | % | 2,319 | ||||||||||||||||
|
Non-interest expenses:
|
812 | 9 | % | 748 | 1,588 | 8 | % | 1,465 | ||||||||||||||||
|
Pre-tax income
|
$ | 1,430 | 333 | % | $ | 330 | $ | 2,636 | 209 | % | $ | 854 | ||||||||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
% change
|
2011
|
2012
|
% change
|
2011
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||
|
Interest
|
$ | 221 |
NM
|
$ | (20 | ) | $ | 372 | 107 | % | $ | 180 | ||||||||||||
|
Investment advisory fees
|
194 | (18 | )% | 237 | 519 | 9 | % | 475 | ||||||||||||||||
|
Other
|
12,975 |
NM
|
(492 | ) | 12,972 |
NM
|
(260 | ) | ||||||||||||||||
|
Total revenues
|
13,390 |
NM
|
(275 | ) | 13,863 |
NM
|
395 | |||||||||||||||||
|
Expenses:
|
||||||||||||||||||||||||
|
Compensation expense
|
522 | 12 | % | 465 | 961 | (13 | )% | 1,104 | ||||||||||||||||
|
Other expenses
|
6 | (96 | )% | 168 | 115 | (56 | )% | 264 | ||||||||||||||||
|
Total expenses
|
528 | (17 | )% | 633 | 1,076 | (21 | )% | 1,368 | ||||||||||||||||
|
Income (loss) before taxes and including noncontrolling interests:
|
12,862 |
NM
|
(908 | ) | 12,787 |
NM
|
(973 | ) | ||||||||||||||||
|
Noncontrolling interests
|
9,121 | 3,124 | 9,111 | 3,201 | ||||||||||||||||||||
|
Pre-tax income (loss) excluding noncontrolling interests
|
$ | 3,741 | 193 | % | $ | (4,032 | ) | $ | 3,676 | 188 | % | $ | (4,174 | ) | ||||||||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||
|
2012
|
% change
|
2011
|
2012
|
% change
|
2011
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||
|
Interest income
|
$ | 2,102 | 19 | % | $ | 1,761 | $ | 4,023 | 9 | % | $ | 3,701 | ||||||||||||
|
Other
|
1,168 | (36 | )% | 1,813 | 1,908 | (42 | )% | 3,276 | ||||||||||||||||
|
Total revenues
|
3,270 | (9 | )% | 3,574 | 5,931 | (15 | )% | 6,977 | ||||||||||||||||
|
Interest expense
|
11,386 | 79 | % | 6,376 | 20,899 | 57 | % | 13,342 | ||||||||||||||||
|
Net revenues
|
(8,116 | ) | (190 | )% | (2,802 | ) | (14,968 | ) | (135 | )% | (6,365 | ) | ||||||||||||
|
Acquisition related expenses
|
19,604 |
NM
|
- | 19,604 |
NM
|
- | ||||||||||||||||||
|
Other expense
|
7,150 | 27 | % | 5,613 | 16,264 | 11 | % | 14,683 | ||||||||||||||||
|
Non-interest expenses
|
26,754 | 377 | % | 5,613 | 35,868 | 144 | % | 14,683 | ||||||||||||||||
|
Pre-tax loss
|
$ | (34,870 | ) | (314 | )% | $ | (8,415 | ) | $ | (50,836 | ) | (142 | )% | $ | (21,048 | ) | ||||||||
|
For the six month
period ended
March 31, 2012
|
For the
year ended
September 30, 2011
|
|
|
RJF dividend payout ratio
(1)
|
25%
|
24%
|
|
(1)
|
Computed as dividends declared per common share during the period as a percentage of diluted earnings per common share.
|
|
March 31, 2012
|
||||
|
(in thousands)
|
||||
|
RJF
|
$ | 7,864 | ||
|
RJ&A, invested on behalf of RJF
|
1,567,066 | |||
|
RJ&A, excluding investment on behalf of RJF
|
313,001 | |||
|
RJ Bank
|
761,101 | |||
|
Other
|
226,826 | |||
|
Total
|
$ | 2,875,858 | ||
|
Committed
secured
(1)
|
Uncommitted
secured
(1)(2)
|
Uncommitted
unsecured
(1)(2)
|
Total
|
|||||||||||||||||||||||||||||
|
Financing
Amount
|
Outstanding
balance
|
Financing
Amount
|
Outstanding
balance
|
Financing
Amount
|
Outstanding
balance
|
Financing
Amount
|
Outstanding
balance
|
|||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||||
|
RJ&A
|
$ | 400,000 | $ | 4,482 | $ | 1,800,000 | $ | 231,544 | $ | 375,000 | $ | 150,600 | $ | 2,575,000 | $ | 386,626 | ||||||||||||||||
|
RJF
|
- | - | - | - | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||||||||||||||||
|
Total
|
$ | 400,000 | $ | 4,482 | $ | 1,800,000 | $ | 231,544 | $ | 475,000 | $ | 250,600 | $ | 2,675,000 | $ | 486,626 | ||||||||||||||||
|
Total number of agreements
|
4 | 6 | 7 | 17 | ||||||||||||||||||||||||||||
|
(1)
|
Our ability to borrow is dependent upon compliance with the conditions in the various committed loan agreements and collateral eligibility requirements.
|
|
(2)
|
Lenders are under no contractual obligation to lend to us under uncommitted credit facilities.
|
|
Repurchase transactions
|
Reverse repurchase transactions
|
|||||||||||||||||||||||
|
For the period ended:
|
Average daily
balance
outstanding
|
Maximum month-end
balance outstanding
during the quarter
|
End of period
balance
outstanding
|
Average daily
balance
outstanding
|
Maximum month-end
balance outstanding
during the quarter
|
End of
period
balance
outstanding
|
||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
|
March 31, 2012
|
$ | 180,875 | $ | 176,335 | $ | 137,026 | $ | 410,578 | $ | 413,527 | $ | 340,158 | ||||||||||||
|
December 31, 2011
|
184,925 | 244,961 | 184,061 | 433,170 | 468,848 | 400,455 | ||||||||||||||||||
|
September 30, 2011
|
145,574 | 290,686 | 188,745 | 425,248 | 446,314 | 398,247 | ||||||||||||||||||
|
June 30, 2011
|
62,527 | 84,861 | 64,988 | 473,739 | 488,312 | 470,407 | ||||||||||||||||||
|
March 31, 2011
|
66,848 | 62,292 | 62,292 | 444,640 | 431,260 | 390,376 | ||||||||||||||||||
|
Rating Agency
|
Rating
|
Outlook
|
|
Standard and Poor’s (“S&P”)
|
BBB
|
Negative
|
|
Moody’s Investor Service (“Moody’s”)
|
Baa2
|
Stable
|
|
Total
|
Remainder
of fiscal
year 2012
|
Fiscal year
2013
|
Fiscal year
2014
|
Fiscal year
2015
|
Fiscal year
2016
|
Thereafter
|
||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
Corporate debt
(1)
|
$ | 1,205,664 | $ | 4,720 | $ | 6,718 | $ | 3,860 | $ | 4,086 | $ | 253,920 | $ | 932,360 | ||||||||||||||
|
Interest on debt
(1)
|
1,152,886 | 32,503 | 77,549 | 77,141 | 76,915 | 76,675 | 812,103 | |||||||||||||||||||||
|
Other borrowings
(1)
|
349,600 | 349,600 | - | - | - | - | - | |||||||||||||||||||||
|
Loans payable of consolidated variable interest entities
(2)
|
90,950 | 18,530 | 18,915 | 18,529 | 15,645 | 10,812 | 8,519 | |||||||||||||||||||||
|
Operating leases
|
229,671 | 45,996 | 41,811 | 33,475 | 27,291 | 23,732 | 57,366 | |||||||||||||||||||||
|
Investments - private equity partnerships
|
29,954 | 29,954 | - | - | - | - | - | |||||||||||||||||||||
|
Certificates of deposit
(3)
|
307,852 | 32,601 | 47,767 | 37,249 | 70,342 | 63,730 | 56,163 | |||||||||||||||||||||
|
Commitments to extend credit - RJ Bank
(4)
|
1,854,760 | 1,854,760 | - | - | - | - | - | |||||||||||||||||||||
|
RJ Bank loans purchased, not yet settled
|
32,800 | 32,800 | - | - | - | - | - | |||||||||||||||||||||
|
Commitments to real estate entities
|
2,459 | 2,459 | - | - | - | - | - | |||||||||||||||||||||
|
Commitment to purchase real estate in Pasco County, Florida
(5)
|
3,500 | 3,500 | - | - | - | - | - | |||||||||||||||||||||
|
Underwriting commitments
|
7,049 | 7,049 | - | - | - | - | - | |||||||||||||||||||||
|
Naming rights for Raymond James stadium
|
14,879 | 1,861 | 3,835 | 3,988 | 4,148 | 1,047 | - | |||||||||||||||||||||
|
Loans and commitments to financial advisors
(6)
|
26,784 | 17,138 | 7,406 | 1,700 | 69 | 471 | - | |||||||||||||||||||||
|
Total
|
$ | 5,308,808 | $ | 2,433,471 | $ | 204,001 | $ | 175,942 | $ | 198,496 | $ | 430,387 | $ | 1,866,511 | ||||||||||||||
|
(1)
|
See Notes 10 and 11 of the Notes to Condensed Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
(2)
|
Loans which are non-recourse to us. See further discussion in Note 13 of the Notes to Consolidated Financial Statements included on page 122 of our 2011 Form 10-K.
|
|
(3)
|
See Note 9 of the Notes to Condensed Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
(4)
|
See Note 18 of the Notes to Condensed Consolidated Financial Statements in this Form 10-Q for additional information.
|
|
(5)
|
See discussion of this commitment in Item 2, “Properties” on page 26 of our 2011 Form 10-K.
|
|
(6)
|
Amounts presented do not include the $136 million of cash retention payments made in April, 2012 to certain key Morgan Keegan employees which are described above.
|
|
Six months ended March 31, 2012
|
VaR at
|
|||||||||||||||||||
|
High
|
Low
|
Daily
Average
|
March 31, 2012
|
September 30, 2011
|
||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||
|
Daily VaR
|
$ | 1,352 | $ | 218 | $ | 628 | $ | 218 | $ | 441 | ||||||||||
|
Related portfolio value (net)
(1)
|
315,473 | 225,005 | 261,970 | 225,005 | 220,436 | |||||||||||||||
|
VaR as a percent of portfolio value
|
0.43 | % | 0.10 | % | 0.24 | % | 0.10 | % | 0.20 | % | ||||||||||
|
Six months ended March 31, 2011
|
VaR at
|
|||||||||||||||
|
High
|
Low
|
Daily
Average
|
March 31, 2011
|
|||||||||||||
|
($ in thousands)
|
||||||||||||||||
|
Daily VaR
|
$ | 1,015 | $ | 211 | $ | 619 | $ | 553 | ||||||||
|
Related portfolio value (net)
(1)
|
225,783 | 299,698 | 223,435 | 193,088 | ||||||||||||
|
VaR as a percent of portfolio value
|
0.45 | % | 0.07 | % | 0.28 | % | 0.29 | % | ||||||||
|
Instantaneous
changes in rate
|
Net interest
income
|
Projected change in
net interest income
|
||||||||
|
($ in thousands)
|
||||||||||
| +300 | $ | 331,910 | 1.13 | % | ||||||
| +200 | 340,840 | 3.85 | % | |||||||
| +100 | 344,731 | 5.03 | % | |||||||
| - | 328,216 | - | ||||||||
| -100 | 309,827 | (5.60 | )% | |||||||
|
Repricing opportunities
|
||||||||||||||||
|
0 - 6 months
|
7 - 12 months
|
1 - 5 years
|
5 or more years
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Interest-earning assets:
|
||||||||||||||||
|
Loans
|
$ | 6,781,681 | $ | 420,939 | $ | 339,193 | $ | 132,126 | ||||||||
|
Available for sale securities
|
199,016 | 27,649 | 131,817 | 76,632 | ||||||||||||
|
Other investments
|
899,514 | - | - | - | ||||||||||||
|
Total interest-earning assets
|
7,880,211 | 448,588 | 471,010 | 208,758 | ||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||
|
Transaction and savings accounts
|
7,586,757 | - | - | - | ||||||||||||
|
Certificates of deposit
|
32,601 | 21,504 | 253,747 | - | ||||||||||||
|
Total interest-bearing liabilities
|
7,619,358 | 21,504 | 253,747 | - | ||||||||||||
|
Gap
|
260,853 | 427,084 | 217,263 | 208,758 | ||||||||||||
|
Cumulative gap
|
$ | 260,853 | $ | 687,937 | $ | 905,200 | $ | 1,113,958 | ||||||||
|
Due in
|
||||||||||||||||
|
One year or less
|
>One year – five
years
|
> 5 years
|
Total
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Loans held for sale
|
$ | - | $ | - | $ | 90,731 | $ | 90,731 | ||||||||
|
Loans held for investment:
|
||||||||||||||||
|
C&I loans
|
106,734 | 3,455,766 | 1,257,864 | 4,820,364 | ||||||||||||
|
CRE construction loans
|
20,612 | 11,442 | 17,956 | 50,010 | ||||||||||||
|
CRE loans
|
364,992 | 519,058 | 53,520 | 937,570 | ||||||||||||
|
Residential mortgage loans
|
526 | 13,165 | 1,712,441 | 1,726,132 | ||||||||||||
|
Consumer loans
|
40,179 | 374 | - | 40,553 | ||||||||||||
|
Total loans held for investment
|
533,043 | 3,999,805 | 3,041,781 | 7,574,629 | ||||||||||||
|
Total loans
|
$ | 533,043 | $ | 3,999,805 | $ | 3,132,512 | $ | 7,665,360 | ||||||||
|
Interest rate type
|
||||||||||||
|
Fixed
|
Adjustable
|
Total
(1)
|
||||||||||
|
(in thousands)
|
||||||||||||
|
Loans held for sale
|
$ | 9,860 | $ | 80,871 | $ | 90,731 | ||||||
|
Loans held for investment:
|
||||||||||||
|
C&I loans
|
3,674 | 4,709,956 | 4,713,630 | |||||||||
|
CRE construction loans
|
- | 29,398 | 29,398 | |||||||||
|
CRE loans
|
65,003 | 507,575 | 572,578 | |||||||||
|
Residential mortgage loans
|
154,402 | 1,571,204 | (2) | 1,725,606 | ||||||||
|
Consumer loans
|
- | 374 | 374 | |||||||||
|
Total loans held for investment
|
223,079 | 6,818,507 | 7,041,586 | |||||||||
|
Total loans
|
$ | 232,939 | $ | 6,899,378 | $ | 7,132,317 | ||||||
|
(1)
|
Excludes any net unearned income and deferred expenses.
|
|
(2)
|
See the “Credit risk” discussion within Item 3 of this Form 10-Q for additional information regarding RJ Bank’s interest-only loan portfolio and related repricing schedule.
|
|
Six months ended March 31,
|
||||||||
|
2012
|
2011
|
|||||||
|
($ in thousands)
|
||||||||
|
Allowance for loan losses, beginning of period
|
$ | 145,744 | $ | 147,084 | ||||
|
Provision for loan losses
|
12,610 | 19,869 | ||||||
|
Charge-offs:
|
||||||||
|
C&I loans
|
(5,217 | ) | (82 | ) | ||||
|
CRE loans
|
(1,000 | ) | (9,930 | ) | ||||
|
Residential mortgage loans
|
(8,586 | ) | (12,105 | ) | ||||
|
Consumer
|
(38 | ) | (40 | ) | ||||
|
Total charge-offs
|
(14,841 | ) | (22,157 | ) | ||||
|
Recoveries:
|
||||||||
|
CRE loans
|
548 | 279 | ||||||
|
Residential mortgage loans
|
534 | 1,039 | ||||||
|
Consumer
|
10 | 1 | ||||||
|
Total recoveries
|
1,092 | 1,319 | ||||||
|
Net charge-offs
|
(13,749 | ) | (20,838 | ) | ||||
|
Foreign exchange translation adjustment
|
73 | - | ||||||
|
Allowance for loan losses, end of period
|
$ | 144,678 | $ | 146,115 | ||||
|
Allowance for loan losses to total bank loans outstanding
|
1.91 | % | 2.37 | % | ||||
|
Three months ended March 31,
|
Six months ended March 31,
|
|||||||||||||||||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||||||
|
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
|
Net loan
charge-off
amount
|
% of avg.
outstanding
loans
|
|||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
|
C&I loans
|
$ | (2,068 | ) | 0.18 | % | $ | (82 | ) | 0.01 | % | $ | (5,217 | ) | 0.24 | % | $ | (82 | ) | - | |||||||||||||
|
CRE loans
|
(882 | ) | 0.45 | % | (3,302 | ) | 1.65 | % | (452 | ) | 0.12 | % | (9,651 | ) | 2.35 | % | ||||||||||||||||
|
Residential mortgage loans
|
(5,107 | ) | 1.17 | % | (5,123 | ) | 1.08 | % | (8,052 | ) | 0.92 | % | (11,066 | ) | 1.14 | % | ||||||||||||||||
|
Consumer loans
|
5 | 0.09 | % | (39 | ) | 2.53 | % | (28 | ) | 0.37 | % | (39 | ) | 1.05 | % | |||||||||||||||||
|
Total
|
$ | (8,052 | ) | 0.44 | % | $ | (8,546 | ) | 0.55 | % | $ | (13,749 | ) | 0.39 | % | $ | (20,838 | ) | 0.67 | % | ||||||||||||
|
March 31, 2012
|
September 30, 2011
|
|||||||||||||||
|
Nonperforming
loan balance
|
Allowance for
loan losses
balance
|
Nonperforming
loan balance
|
Allowance for
loan losses
balance
|
|||||||||||||
|
(in thousands)
|
||||||||||||||||
|
Loans held for sale
|
$ | - | $ | - | $ | - | $ | (5 | ) | |||||||
|
Loans held for investment:
|
||||||||||||||||
|
C&I loans
|
6,230 | (84,300 | ) | 25,685 | (81,267 | ) | ||||||||||
|
CRE construction loans
|
- | (749 | ) | - | (490 | ) | ||||||||||
|
CRE loans
|
9,441 | (26,835 | ) | 15,842 | (30,752 | ) | ||||||||||
|
Residential mortgage loans
|
87,141 | (32,742 | ) | 91,796 | (33,210 | ) | ||||||||||
|
Consumer loans
|
- | (52 | ) | - | (20 | ) | ||||||||||
|
Total
|
$ | 102,812 | $ | (144,678 | ) | $ | 133,323 | $ | (145,744 | ) | ||||||
|
Delinquent residential and consumer loans
(amount)
|
Delinquent residential and consumer loans as a
percentage of outstanding loan balances
|
|||||||||||||||||||||||
|
30-89 days
|
90 days or more
|
Total
|
30-89 days
|
90 days or more
|
Total
|
|||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||
|
March 31, 2012:
|
||||||||||||||||||||||||
|
Residential mortgage loans:
|
||||||||||||||||||||||||
|
First mortgage loans
|
$ | 16,949 | $ | 60,349 | $ | 77,298 | 1.00 | % | 3.55 | % | 4.55 | % | ||||||||||||
|
Home equity loans/lines
|
338 | 65 | 403 | 1.21 | % | 0.23 | % | 1.44 | % | |||||||||||||||
|
Total residential mortgage and consumer loans
|
$ | 17,287 | $ | 60,414 | $ | 77,701 | 0.98 | % | 3.42 | % | 4.40 | % | ||||||||||||
|
September 30, 2011:
|
||||||||||||||||||||||||
|
Residential mortgage loans:
|
||||||||||||||||||||||||
|
First mortgage loans
|
$ | 12,718 | $ | 61,870 | $ | 74,588 | 0.74 | % | 3.58 | % | 4.32 | % | ||||||||||||
|
Home equity loans/lines
|
88 | 114 | 202 | 0.28 | % | 0.37 | % | 0.65 | % | |||||||||||||||
|
Total residential mortgage and consumer loans
|
$ | 12,806 | $ | 61,984 | $ | 74,790 | 0.73 | % | 3.51 | % | 4.24 | % | ||||||||||||
|
March 31, 2012
|
September 30, 2011
|
|||||||
|
($ outstanding as a % of RJ Bank total assets)
|
||||||||
| 3.1 | % |
CA
(1)
|
3.3 | % |
CA
(1)
|
|||
| 2.8 | % |
FL
|
2.6 | % |
FL
|
|||
| 1.8 | % |
NY
|
1.9 | % |
NY
|
|||
| 1.0 | % |
NJ
|
1.1 | % |
NJ
|
|||
| 0.8 | % |
VA
|
0.9 | % |
VA
|
|||
|
(1)
|
This concentration ratio for the state of California excludes 2.1% and 1.9% at March 31, 2012 and September 30, 2011, respectively, for loans purchased from a large investment grade institution that have full repurchase recourse for any delinquent loans.
|
|
March 31, 2012
|
||||
|
(in thousands)
|
||||
|
One year or less
|
$ | 348,272 | ||
|
Over one year through two years
|
51,152 | |||
|
Over two years through three years
|
73,449 | |||
|
Over three years through four years
|
17,770 | |||
|
Over four years through five years
|
10,046 | |||
|
Over five years
|
23,379 | |||
|
Total outstanding residential interest-only loan balance
|
$ | 524,068 | ||
|
March 31, 2012
|
September 30, 2011
|
||
|
Residential first mortgage loan weighted-average LTV/FICO
(1)
|
66%/752
|
66%/751
|
|
March 31, 2012
|
September 30, 2011
|
|||||||
|
($ outstanding as a % of RJ Bank total assets)
|
||||||||
| 4.9 | % |
Consumer products and services
|
4.2 | % |
Telecommunications
|
|||
| 3.8 | % |
Media communications
|
3.4 | % |
Consumer products and services
|
|||
| 3.4 | % |
Pharmaceuticals
|
2.9 | % |
Media communications
|
|||
| 3.2 | % |
Technology
|
2.9 | % |
Pharmaceuticals
|
|||
| 3.1 | % |
Hospitals
|
2.6 | % |
Healthcare providers (non-hospital)
|
|||
|
Number of shares
purchased
(1)
|
Average price
per share
|
|||||||
|
October 1, 2011 – October 31, 2011
|
394,080 | $ | 24.53 | |||||
|
November 1, 2011 – November 30, 2011
|
245,521 | 29.00 | ||||||
|
December 1, 2011 – December 31, 2011
|
- | - | ||||||
|
First quarter
|
639,601 | $ | 26.25 | |||||
|
January 1, 2012 – January 31, 2012
|
61,025 | $ | 34.58 | |||||
|
February 1, 2012 – February 29, 2012
|
- | - | ||||||
|
March 1, 2012 – March 31, 2012
|
- | - | ||||||
|
Second quarter
|
61,025 | $ | 34.58 | |||||
|
Year-to-date
|
700,626 | $ | 26.97 | |||||
|
(1)
|
We purchase our own stock in conjunction with a number of activities, each of which are described below. We do not have a formal stock repurchase plan. As of March 31, 2012, there is $41.3 million remaining on the current authorization of our Board of Directors for open market share repurchases.
|
|
3.2
|
Amended and Restated By-Laws of Raymond James Financial, Inc. reflecting amendments adopted by the Board of Directors on April 20, 2012, incorporated by reference to Exhibit 3(ii) as filed with Form 8-K on April 25, 2012.
|
||
|
4.5
|
Third Supplemental Indenture, dated as of March 7, 2012 (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 March 7, 2012.
|
||
|
4.6
|
Fourth Supplemental Indenture, dated as of March 26, 2012 (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 March 26, 2012.
|
||
|
10.19
|
Stock Purchase Agreement, dated January 11, 2012, between Raymond James Financial, Inc. and Regions Financial Corporation (excluding certain exhibits and schedules), incorporated by reference to Exhibit 10.19 as filed with Form 8-K on January 12, 2012.
|
||
|
10.20*
|
Employment Separation Agreement, Waiver and Release dated as of January 20, 2012 between Raymond James Financial, Inc. and Richard K. Riess, filed herewith.
|
||
|
10.21*
|
Raymond James Financial, Inc. 2012 Stock Incentive Plan, incorporated by reference to Appendix A to Definitive Proxy Statement for the Annual Meeting of Shareholders held February 23, 2012, filed January 25, 2012.
|
||
|
10.22*
|
Form of Contingent Stock Option Agreement under 2012 Stock Incentive Plan, filed herewith.
|
||
|
10.23*
|
Form of Stock Option Agreement under 2012 Stock Incentive Plan, filed herewith.
|
||
|
10.24*
|
Form of Restricted Stock Unit Agreement for Non-Bonus Award (Employee/Independent Contractor) under 2012 Stock Incentive Plan, filed herewith.
|
||
|
10.25*
|
Form of Restricted Stock Unit Agreement for Non-Employee Director under 2012 Stock Incentive Plan, filed herewith.
|
||
|
10.26*
|
Form of Restricted Stock Unit Agreement for Stock Bonus Award under 2012 Stock Incentive Plan, filed herewith.
|
||
|
10.27*
|
Form of Restricted Stock Unit Agreement for John C. Carson, Jr. (Performance-based Retention Award) under 2012 Stock Incentive Plan, filed herewith.
|
||
|
10.28*
|
Letter Agreement dated January 31, 2012 between Raymond James Financial, Inc. and Richard G. Averitt, III regarding transition of services and employment matters, filed herewith.
|
||
|
10.29
|
Credit Agreement, dated as of April 2, 2012, among Raymond James Investments, LLC, RJ Securities, Inc., RJC Forensics, LLC, RJC Event Photos, LLC, Morgan Properties, LLC and Regions Bank (excluding certain exhibits and schedules), incorporated by reference to Exhibit 10.22 as filed with Form 8-K on April 3, 2012.
|
||
|
10.30*
|
Employment Agreement, dated January 11, 2012, as amended and restated as of April 20, 2012, by and between Raymond James Financial, Inc. and John C. Carson, Jr., incorporated by reference to Exhibit 10.1 as filed with Form 8-K on April 25, 2012.
|
||
|
11
|
Statement Re: Computation of per Share Earnings (the calculation of per share earnings is included in Part I, Item 1 in the Notes to Condensed Consolidated Financial Statements (Earnings Per Share) and is omitted here in accordance with Section (b)(11) of Item 601 of Regulation S-K).
|
|
12.1
|
Statement of Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends, filed herewith.
|
||
|
31.1
|
Principal Executive Officer Certification as required by Rule 13a-14(a)/15d-14(a), filed herewith.
|
||
|
31.2
|
Principal Financial Officer Certification as required by 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, filed herewith.
|
||
|
99.(i).1
|
Charter of the Audit Committee of the Board of Directors as revised on November 21, 2011, incorporated by reference to Exhibit 99.(i).1 as filed with Form 10-Q on February 8, 2012.
|
|
|
*
|
Indicates a management contract or compensatory plan or arrangement in which a director or named executive officer participates.
|
|
RAYMOND JAMES FINANCIAL, INC.
|
||
|
(Registrant)
|
||
|
Date:
May 9, 2012
|
/s/ Paul C. Reilly
|
|
|
Paul C. Reilly
|
||
|
Chief Executive Officer
|
||
|
Date:
May 9, 2012
|
/s/ Jeffrey P. Julien
|
|
|
Jeffrey P. Julien
|
||
|
Executive Vice President - Finance
|
||
|
Chief Financial Officer and Treasurer
|
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
| Supplier name | Ticker |
|---|---|
| SPDR Gold Shares | GLD |
| CME Group Inc. | CME |
| Intercontinental Exchange, Inc. | ICE |
| Moody's Corporation | MCO |
| Nasdaq, Inc. | NDAQ |
| iShares Gold Trust | IAU |
| MarketAxess Holdings Inc. | MKTX |
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|