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x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
|
THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
|
THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
|
to
|
|
Florida
|
|
No. 59-1517485
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
Large accelerated filer
x
|
|
Accelerated filer
o
|
|
|
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
|
|
|
PAGE
|
PART I.
|
|
|
|
|
|
|
|
Item 1.
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
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|
||
|
|
|
|
Item 2.
|
|
||
|
|
|
|
Item 3.
|
|
||
|
|
|
|
Item 4.
|
|
||
|
|
|
|
PART II.
|
|
||
|
|
|
|
Item 1.
|
|
||
|
|
|
|
Item 1A.
|
|
||
|
|
|
|
Item 2.
|
|
||
|
|
|
|
Item 3.
|
|
||
|
|
|
|
Item 5.
|
|
||
|
|
|
|
Item 6.
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
(in thousands)
|
||||||
Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,978,057
|
|
|
$
|
2,601,006
|
|
Assets segregated pursuant to regulations and other segregated assets
|
3,668,989
|
|
|
2,905,324
|
|
||
Securities purchased under agreements to resell and other collateralized financings
|
444,812
|
|
|
474,144
|
|
||
Financial instruments, at fair value:
|
|
|
|
|
|
||
Trading instruments
|
844,948
|
|
|
690,551
|
|
||
Available for sale securities
|
543,784
|
|
|
513,730
|
|
||
Private equity investments
|
210,510
|
|
|
209,088
|
|
||
Other investments
|
249,216
|
|
|
248,751
|
|
||
Derivative instruments associated with offsetting matched book positions
|
430,766
|
|
|
389,457
|
|
||
Receivables:
|
|
|
|
|
|
||
Brokerage clients, net
|
2,120,244
|
|
|
2,185,296
|
|
||
Stock borrowed
|
87,924
|
|
|
124,373
|
|
||
Bank loans, net
|
14,799,516
|
|
|
12,988,021
|
|
||
Brokers-dealers and clearing organizations
|
193,868
|
|
|
134,890
|
|
||
Loans to financial advisors, net
|
576,103
|
|
|
488,760
|
|
||
Other
|
574,701
|
|
|
514,000
|
|
||
Deposits with clearing organizations
|
256,633
|
|
|
207,488
|
|
||
Prepaid expenses and other assets
|
726,030
|
|
|
705,391
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
160,824
|
|
|
199,678
|
|
||
Property and equipment, net
|
294,994
|
|
|
255,875
|
|
||
Deferred income taxes, net
|
296,619
|
|
|
266,899
|
|
||
Goodwill and identifiable intangible assets, net
|
384,893
|
|
|
376,962
|
|
||
Total assets
|
$
|
28,843,431
|
|
|
$
|
26,479,684
|
|
|
|
|
|
||||
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
($ in thousands)
|
||||||
Liabilities and equity:
|
|
|
|
|
|
||
Trading instruments sold but not yet purchased, at fair value
|
$
|
285,299
|
|
|
$
|
287,993
|
|
Securities sold under agreements to repurchase
|
266,158
|
|
|
332,536
|
|
||
Derivative instruments associated with offsetting matched book positions, at fair value
|
430,766
|
|
|
389,457
|
|
||
Payables:
|
|
|
|
||||
Brokerage clients
|
4,950,549
|
|
|
4,671,073
|
|
||
Stock loaned
|
586,683
|
|
|
478,573
|
|
||
Bank deposits
|
13,732,194
|
|
|
11,919,881
|
|
||
Brokers-dealers and clearing organizations
|
486,481
|
|
|
164,054
|
|
||
Trade and other
|
613,994
|
|
|
729,245
|
|
||
Other borrowings
|
847,578
|
|
|
703,065
|
|
||
Accrued compensation, commissions and benefits
|
737,848
|
|
|
842,527
|
|
||
Loans payable of consolidated variable interest entities
|
12,409
|
|
|
25,960
|
|
||
Senior notes payable
|
899,342
|
|
|
1,149,222
|
|
||
Total liabilities
|
23,849,301
|
|
|
21,693,586
|
|
||
Commitments and contingencies (see Note 17)
|
|
|
|
|
|
||
Equity
|
|
|
|
|
|
||
Preferred stock; $.10 par value; 10,000,000 shares authorized; -0- shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock; $.01 par value; 350,000,000 shares authorized; 151,213,530 and 149,283,682 shares issued as of June 30, 2016 and September 30, 2015, respectively, and 141,298,720 and 142,750,653 shares outstanding as of June 30, 2016 and September 30, 2015, respectively
|
1,511
|
|
|
1,491
|
|
||
Additional paid-in capital
|
1,476,323
|
|
|
1,344,779
|
|
||
Retained earnings
|
3,689,244
|
|
|
3,419,719
|
|
||
Treasury stock, at cost; 9,797,230 and 6,364,706 common shares as of June 30, 2016 and September 30, 2015, respectively
|
(363,744
|
)
|
|
(203,455
|
)
|
||
Accumulated other comprehensive loss
|
(55,875
|
)
|
|
(40,503
|
)
|
||
Total equity attributable to Raymond James Financial, Inc.
|
4,747,459
|
|
|
4,522,031
|
|
||
Noncontrolling interests
|
246,671
|
|
|
264,067
|
|
||
Total equity
|
4,994,130
|
|
|
4,786,098
|
|
||
Total liabilities and equity
|
$
|
28,843,431
|
|
|
$
|
26,479,684
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Securities commissions and fees
|
$
|
871,764
|
|
|
$
|
874,606
|
|
|
$
|
2,574,756
|
|
|
$
|
2,568,829
|
|
Investment banking
|
72,714
|
|
|
76,988
|
|
|
198,971
|
|
|
228,766
|
|
||||
Investment advisory and related administrative fees
|
96,156
|
|
|
96,235
|
|
|
288,574
|
|
|
286,012
|
|
||||
Interest
|
163,810
|
|
|
137,147
|
|
|
467,848
|
|
|
403,669
|
|
||||
Account and service fees
|
129,334
|
|
|
113,866
|
|
|
373,685
|
|
|
336,990
|
|
||||
Net trading profit
|
29,795
|
|
|
16,216
|
|
|
66,379
|
|
|
42,157
|
|
||||
Other
|
23,120
|
|
|
33,655
|
|
|
58,924
|
|
|
74,758
|
|
||||
Total revenues
|
1,386,693
|
|
|
1,348,713
|
|
|
4,029,137
|
|
|
3,941,181
|
|
||||
Interest expense
|
(28,211
|
)
|
|
(27,724
|
)
|
|
(84,644
|
)
|
|
(81,954
|
)
|
||||
Net revenues
|
1,358,482
|
|
|
1,320,989
|
|
|
3,944,493
|
|
|
3,859,227
|
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation, commissions and benefits
|
908,899
|
|
|
901,342
|
|
|
2,663,254
|
|
|
2,621,830
|
|
||||
Communications and information processing
|
71,717
|
|
|
69,267
|
|
|
212,337
|
|
|
196,014
|
|
||||
Occupancy and equipment costs
|
40,825
|
|
|
40,269
|
|
|
123,505
|
|
|
121,100
|
|
||||
Clearance and floor brokerage
|
10,214
|
|
|
9,648
|
|
|
30,727
|
|
|
32,734
|
|
||||
Business development
|
36,488
|
|
|
40,127
|
|
|
112,529
|
|
|
119,607
|
|
||||
Investment sub-advisory fees
|
15,030
|
|
|
15,293
|
|
|
43,866
|
|
|
44,535
|
|
||||
Bank loan loss provision (benefit)
|
3,452
|
|
|
(3,009
|
)
|
|
26,991
|
|
|
10,293
|
|
||||
Acquisition-related expenses
|
13,445
|
|
|
—
|
|
|
21,332
|
|
|
—
|
|
||||
Other
|
66,962
|
|
|
46,757
|
|
|
166,123
|
|
|
137,537
|
|
||||
Total non-interest expenses
|
1,167,032
|
|
|
1,119,694
|
|
|
3,400,664
|
|
|
3,283,650
|
|
||||
Income including noncontrolling interests and before provision for income taxes
|
191,450
|
|
|
201,295
|
|
|
543,829
|
|
|
575,577
|
|
||||
Provision for income taxes
|
72,261
|
|
|
74,935
|
|
|
206,541
|
|
|
218,404
|
|
||||
Net income including noncontrolling interests
|
119,189
|
|
|
126,360
|
|
|
337,288
|
|
|
357,173
|
|
||||
Net loss attributable to noncontrolling interests
|
(6,315
|
)
|
|
(6,835
|
)
|
|
(20,392
|
)
|
|
(15,781
|
)
|
||||
Net income attributable to Raymond James Financial, Inc.
|
$
|
125,504
|
|
|
$
|
133,195
|
|
|
$
|
357,680
|
|
|
$
|
372,954
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share – basic
|
$
|
0.89
|
|
|
$
|
0.93
|
|
|
$
|
2.51
|
|
|
$
|
2.61
|
|
Net income per common share – diluted
|
$
|
0.87
|
|
|
$
|
0.91
|
|
|
$
|
2.47
|
|
|
$
|
2.55
|
|
Weighted-average common shares outstanding – basic
|
141,165
|
|
|
143,252
|
|
|
141,902
|
|
|
142,303
|
|
||||
Weighted-average common and common equivalent shares outstanding – diluted
|
143,952
|
|
|
146,493
|
|
|
144,618
|
|
|
145,870
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Raymond James Financial, Inc.
|
$
|
125,504
|
|
|
$
|
133,195
|
|
|
$
|
357,680
|
|
|
$
|
372,954
|
|
Other comprehensive income (loss), net of tax:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized loss on available for sale securities and non-credit portion of other-than-temporary impairment losses
|
(955
|
)
|
|
(5,381
|
)
|
|
(6,647
|
)
|
|
(3,068
|
)
|
||||
Unrealized gain (loss) on currency translations, net of the impact of net investment hedges
|
2,302
|
|
|
1,295
|
|
|
6,401
|
|
|
(20,424
|
)
|
||||
Unrealized (loss) gain on cash flow hedges
|
(6,922
|
)
|
|
3,589
|
|
|
(15,126
|
)
|
|
2,088
|
|
||||
Total comprehensive income
|
$
|
119,929
|
|
|
$
|
132,698
|
|
|
$
|
342,308
|
|
|
$
|
351,550
|
|
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total other-than-temporary impairment, net
|
$
|
423
|
|
|
$
|
1,228
|
|
|
$
|
444
|
|
|
$
|
2,352
|
|
Portion of recoveries recognized in other comprehensive income
|
(423
|
)
|
|
(1,228
|
)
|
|
(444
|
)
|
|
(2,352
|
)
|
||||
Net impairment losses recognized in other revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
All components of other comprehensive income (loss), net of tax, are attributable to Raymond James Financial, Inc.
|
|
Nine months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(in thousands, except per share amounts)
|
||||||
Common stock, par value $.01 per share:
|
|
|
|
||||
Balance, beginning of year
|
$
|
1,491
|
|
|
$
|
1,444
|
|
Share issuances
|
20
|
|
|
45
|
|
||
Balance, end of period
|
1,511
|
|
|
1,489
|
|
||
|
|
|
|
||||
Additional paid-in capital:
|
|
|
|
|
|
||
Balance, beginning of year
|
1,344,779
|
|
|
1,239,046
|
|
||
Employee stock purchases
|
23,861
|
|
|
16,810
|
|
||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
15,337
|
|
|
23,958
|
|
||
Restricted stock, stock option and restricted stock unit expense
|
57,176
|
|
|
54,366
|
|
||
Excess tax benefit (reduction of prior tax benefit) from share-based payments
|
34,791
|
|
|
(6,948
|
)
|
||
Other
|
379
|
|
|
335
|
|
||
Balance, end of period
|
1,476,323
|
|
|
1,327,567
|
|
||
|
|
|
|
||||
Retained earnings:
|
|
|
|
|
|
||
Balance, beginning of year
|
3,419,719
|
|
|
3,023,845
|
|
||
Net income attributable to Raymond James Financial, Inc.
|
357,680
|
|
|
372,954
|
|
||
Cash dividends declared
|
(88,155
|
)
|
|
(80,404
|
)
|
||
Other
|
—
|
|
|
5
|
|
||
Balance, end of period
|
3,689,244
|
|
|
3,316,400
|
|
||
|
|
|
|
||||
Treasury stock:
|
|
|
|
|
|
||
Balance, beginning of year
|
(203,455
|
)
|
|
(121,211
|
)
|
||
Purchases/surrenders
|
(152,598
|
)
|
|
(7,818
|
)
|
||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
(7,691
|
)
|
|
(20,470
|
)
|
||
Balance, end of period
|
(363,744
|
)
|
|
(149,499
|
)
|
||
|
|
|
|
||||
Accumulated other comprehensive loss:
(1)
|
|
|
|
|
|
||
Balance, beginning of year
|
(40,503
|
)
|
|
(1,888
|
)
|
||
Net change in unrealized gain/loss on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax
|
(6,647
|
)
|
|
(3,068
|
)
|
||
Net change in currency translations and net investment hedges, net of tax
|
6,401
|
|
|
(20,424
|
)
|
||
Net change in cash flow hedges, net of tax
|
(15,126
|
)
|
|
2,088
|
|
||
Balance, end of period
|
(55,875
|
)
|
|
(23,292
|
)
|
||
Total equity attributable to Raymond James Financial, Inc.
|
$
|
4,747,459
|
|
|
$
|
4,472,665
|
|
|
|
|
|
||||
Noncontrolling interests:
|
|
|
|
|
|
||
Balance, beginning of year
|
$
|
264,067
|
|
|
$
|
292,020
|
|
Net loss attributable to noncontrolling interests
|
(20,392
|
)
|
|
(15,781
|
)
|
||
Capital contributions
|
14,958
|
|
|
19,531
|
|
||
Distributions
|
(10,367
|
)
|
|
(20,085
|
)
|
||
Other
|
(1,595
|
)
|
|
(2,061
|
)
|
||
Balance, end of period
|
246,671
|
|
|
273,624
|
|
||
Total equity
|
$
|
4,994,130
|
|
|
$
|
4,746,289
|
|
(1)
|
All components of other comprehensive (loss) income, net of tax, are attributable to Raymond James Financial, Inc.
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|||||||
|
Nine months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(in thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income attributable to Raymond James Financial, Inc.
|
$
|
357,680
|
|
|
$
|
372,954
|
|
Net loss attributable to noncontrolling interests
|
(20,392
|
)
|
|
(15,781
|
)
|
||
Net income including noncontrolling interests
|
337,288
|
|
|
357,173
|
|
||
|
|
|
|
||||
Adjustments to reconcile net income including noncontrolling interests to net cash (used in) provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
53,964
|
|
|
51,051
|
|
||
Deferred income taxes
|
(33,857
|
)
|
|
(24,027
|
)
|
||
Premium and discount amortization on available for sale securities and unrealized/realized gain on other investments
|
(18,284
|
)
|
|
(42,644
|
)
|
||
Provisions for loan losses, legal proceedings, bad debts and other accruals
|
31,022
|
|
|
19,921
|
|
||
Share-based compensation expense
|
60,777
|
|
|
57,352
|
|
||
Other
|
34,736
|
|
|
21,913
|
|
||
Net change in:
|
|
|
|
|
|
||
Assets segregated pursuant to regulations and other segregated assets
|
(763,665
|
)
|
|
(23,822
|
)
|
||
Securities purchased under agreements to resell and other collateralized financings, net of securities sold under agreements to repurchase
|
(37,046
|
)
|
|
36,774
|
|
||
Stock loaned, net of stock borrowed
|
144,559
|
|
|
13,910
|
|
||
Loans provided to financial advisors, net of repayments
|
(100,186
|
)
|
|
(69,227
|
)
|
||
Brokerage client receivables and other accounts receivable, net
|
(54,626
|
)
|
|
(3,090
|
)
|
||
Trading instruments, net
|
(98,318
|
)
|
|
46,111
|
|
||
Prepaid expenses and other assets
|
(40,667
|
)
|
|
(341
|
)
|
||
Brokerage client payables and other accounts payable
|
598,116
|
|
|
126,702
|
|
||
Accrued compensation, commissions and benefits
|
(104,664
|
)
|
|
(67,994
|
)
|
||
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale
|
(61,580
|
)
|
|
(41,924
|
)
|
||
(Excess tax benefit) reduction of prior tax benefit from share-based payment arrangements
|
(34,791
|
)
|
|
6,948
|
|
||
Net cash (used in) provided by operating activities
|
(87,222
|
)
|
|
464,786
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Additions to property and equipment
|
(86,518
|
)
|
|
(51,665
|
)
|
||
Increase in bank loans, net
|
(1,980,193
|
)
|
|
(1,096,051
|
)
|
||
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock
|
(3,231
|
)
|
|
(4,446
|
)
|
||
Proceeds from sales of loans held for investment
|
116,736
|
|
|
64,173
|
|
||
Purchases, or contributions, to private equity or other investments, net of proceeds from sales of, or distributions received from, private equity and other investments
|
(37,427
|
)
|
|
17,526
|
|
||
Purchases of available for sale securities
|
(108,931
|
)
|
|
(4,201
|
)
|
||
Available for sale securities maturations, repayments and redemptions
|
65,723
|
|
|
51,909
|
|
||
Proceeds from sales of available for sale securities
|
1,530
|
|
|
84,784
|
|
||
Other investing activities, net of proceeds received
|
(6,835
|
)
|
|
3,566
|
|
||
Net cash used in investing activities
|
$
|
(2,039,146
|
)
|
|
$
|
(934,405
|
)
|
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
(continued on next page)
|
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
|
|||||||
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(continued from previous page)
|
|||||||
|
Nine months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(in thousands)
|
||||||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from (repayments of) short-term borrowings, net
|
$
|
122,800
|
|
|
$
|
(20,900
|
)
|
Proceeds from Federal Home Loan Bank advances
|
25,000
|
|
|
300,198
|
|
||
Repayments of Federal Home Loan Bank advances and other borrowed funds
|
(3,287
|
)
|
|
(258,042
|
)
|
||
Repayment of senior notes payable
|
(250,000
|
)
|
|
—
|
|
||
Repayments of borrowings by consolidated variable interest entities which are real estate partnerships
|
(14,263
|
)
|
|
(19,703
|
)
|
||
Proceeds from capital contributed to and borrowings of consolidated variable interest entities which are real estate partnerships
|
—
|
|
|
110
|
|
||
Exercise of stock options and employee stock purchases
|
36,850
|
|
|
40,893
|
|
||
Increase in bank deposits
|
1,812,313
|
|
|
981,692
|
|
||
Purchases of treasury stock
|
(161,501
|
)
|
|
(30,890
|
)
|
||
Dividends on common stock
|
(84,997
|
)
|
|
(77,115
|
)
|
||
Excess tax benefit (reduction of prior tax benefit) from share-based payments
|
34,791
|
|
|
(6,948
|
)
|
||
Net cash provided by financing activities
|
1,517,706
|
|
|
909,295
|
|
||
|
|
|
|
||||
Currency adjustment:
|
|
|
|
|
|
||
Effect of exchange rate changes on cash
|
(14,287
|
)
|
|
(56,658
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(622,949
|
)
|
|
383,018
|
|
||
Cash and cash equivalents at beginning of year
|
2,601,006
|
|
|
2,199,063
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,978,057
|
|
|
$
|
2,582,081
|
|
|
|
|
|
||||
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||
Cash paid for interest
|
$
|
85,751
|
|
|
$
|
80,387
|
|
Cash paid for income taxes
|
$
|
210,789
|
|
|
$
|
311,931
|
|
Non-cash transfers of loans to other real estate owned
|
$
|
2,910
|
|
|
$
|
4,546
|
|
|
|
Three months ended June 30, 2016
|
|
Nine Months Ended June 30, 2016
|
||||
|
|
(in thousands)
|
||||||
Unrealized loss in fair value of equity securities purchased to satisfy certain deferred compensation obligations to be assumed at closing
|
|
$
|
2,468
|
|
|
$
|
5,787
|
|
Legal
|
|
2,309
|
|
|
4,232
|
|
||
Information systems integration costs
|
|
7,610
|
|
|
9,265
|
|
||
Travel and all other
|
|
1,058
|
|
|
2,048
|
|
||
Total acquisition-related expenses
|
|
$
|
13,445
|
|
|
$
|
21,332
|
|
|
June 30,
2016 |
|
September 30,
2015 |
||||
|
(in thousands)
|
||||||
Cash and cash equivalents:
|
|
|
|
||||
Cash in banks
|
$
|
1,975,107
|
|
|
$
|
2,597,568
|
|
Money market fund investments
|
2,950
|
|
|
3,438
|
|
||
Total cash and cash equivalents
(1)
|
$
|
1,978,057
|
|
|
$
|
2,601,006
|
|
|
|
|
|
||||
Assets segregated pursuant to federal regulations and other segregated assets
(2)
|
$
|
3,668,989
|
|
|
$
|
2,905,324
|
|
|
|
|
|
||||
Deposits with clearing organizations:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
227,053
|
|
|
$
|
177,787
|
|
Government and agency obligations
|
29,580
|
|
|
29,701
|
|
||
Total deposits with clearing organizations
|
$
|
256,633
|
|
|
$
|
207,488
|
|
(1)
|
The total amounts presented include cash and cash equivalents of
$951 million
and
$1.22 billion
as of
June 30, 2016
and
September 30, 2015
, respectively, which are either held directly by RJF in depository accounts at third party financial institutions, held in a depository account at RJ Bank (computed as the lesser of RJ Bank’s cash balance or the amount of RJF’s depository account balance), or are otherwise invested by one of our subsidiaries on behalf of RJF, all of which are available without restrictions.
|
(2)
|
Consists of cash maintained in accordance with Rule 15c3-3 under the Securities Exchange Act of 1934. RJ&A, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of its’ clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust.
|
June 30, 2016
|
|
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
June 30, 2016 |
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Assets at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
215
|
|
|
$
|
276,522
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
276,737
|
|
Corporate obligations
|
|
3,192
|
|
|
83,098
|
|
|
—
|
|
|
—
|
|
|
86,290
|
|
|||||
Government and agency obligations
|
|
6,417
|
|
|
102,565
|
|
|
—
|
|
|
—
|
|
|
108,982
|
|
|||||
Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”)
|
|
247
|
|
|
166,675
|
|
|
—
|
|
|
—
|
|
|
166,922
|
|
|||||
Non-agency CMOs and asset-backed securities (“ABS”)
|
|
—
|
|
|
40,851
|
|
|
7
|
|
|
—
|
|
|
40,858
|
|
|||||
Total debt securities
|
|
10,071
|
|
|
669,711
|
|
|
7
|
|
|
—
|
|
|
679,789
|
|
|||||
Derivative contracts
|
|
—
|
|
|
170,951
|
|
|
—
|
|
|
(112,162
|
)
|
|
58,789
|
|
|||||
Equity securities
|
|
51,852
|
|
|
3,980
|
|
|
—
|
|
|
—
|
|
|
55,832
|
|
|||||
Brokered certificates of deposit
|
|
—
|
|
|
44,863
|
|
|
—
|
|
|
—
|
|
|
44,863
|
|
|||||
Other
|
|
542
|
|
|
2
|
|
|
5,131
|
|
|
—
|
|
|
5,675
|
|
|||||
Total trading instruments
|
|
62,465
|
|
|
889,507
|
|
|
5,138
|
|
|
(112,162
|
)
|
|
844,948
|
|
|||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency MBS and CMOs
|
|
—
|
|
|
355,646
|
|
|
—
|
|
|
—
|
|
|
355,646
|
|
|||||
Non-agency CMOs
|
|
—
|
|
|
61,585
|
|
|
—
|
|
|
—
|
|
|
61,585
|
|
|||||
Other securities
|
|
1,514
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,514
|
|
|||||
Auction rate securities (“ARS”):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Municipals
|
|
—
|
|
|
—
|
|
|
24,893
|
|
|
—
|
|
|
24,893
|
|
|||||
Preferred securities
|
|
—
|
|
|
—
|
|
|
100,146
|
|
|
—
|
|
|
100,146
|
|
|||||
Total available for sale securities
|
|
1,514
|
|
|
417,231
|
|
|
125,039
|
|
|
—
|
|
|
543,784
|
|
|||||
Private equity investments
|
|
—
|
|
|
—
|
|
|
210,510
|
|
(3)
|
—
|
|
|
210,510
|
|
|||||
Other investments
(4)
|
|
242,979
|
|
|
5,812
|
|
|
425
|
|
|
—
|
|
|
249,216
|
|
|||||
Derivative instruments associated with offsetting matched book positions
|
|
—
|
|
|
430,766
|
|
|
—
|
|
|
—
|
|
|
430,766
|
|
|||||
Deposits with clearing organizations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agency obligations
|
|
29,580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,580
|
|
|||||
Other assets
|
|
—
|
|
|
—
|
|
|
4,900
|
|
(5)
|
—
|
|
|
4,900
|
|
|||||
Total assets at fair value on a recurring basis
|
|
$
|
336,538
|
|
|
$
|
1,743,316
|
|
|
$
|
346,012
|
|
|
$
|
(112,162
|
)
|
|
$
|
2,313,704
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets at fair value on a nonrecurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
24,783
|
|
|
$
|
52,998
|
|
|
$
|
—
|
|
|
$
|
77,781
|
|
Loans held for sale
(6)
|
|
—
|
|
|
61,651
|
|
|
—
|
|
|
—
|
|
|
61,651
|
|
|||||
Total bank loans, net
|
|
—
|
|
|
86,434
|
|
|
52,998
|
|
|
—
|
|
|
139,432
|
|
|||||
Other real estate owned (“OREO”)
(7)
|
|
—
|
|
|
238
|
|
|
—
|
|
|
—
|
|
|
238
|
|
|||||
Total assets at fair value on a nonrecurring basis
|
|
$
|
—
|
|
|
$
|
86,672
|
|
|
$
|
52,998
|
|
|
$
|
—
|
|
|
$
|
139,670
|
|
|
||||||||||||||||||||
(continued on next page)
|
June 30, 2016
|
|
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
June 30, 2016 |
||||||||||
|
|
(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
|
|
$
|
431
|
|
|
$
|
408
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
839
|
|
Corporate obligations
|
|
1,905
|
|
|
16,483
|
|
|
—
|
|
|
—
|
|
|
18,388
|
|
|||||
Government obligations
|
|
233,302
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233,302
|
|
|||||
Agency MBS and CMOs
|
|
6,575
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,575
|
|
|||||
Non-agency MBS & CMOs
|
|
—
|
|
|
13,368
|
|
|
—
|
|
|
—
|
|
|
13,368
|
|
|||||
Total debt securities
|
|
242,213
|
|
|
30,259
|
|
|
—
|
|
|
—
|
|
|
272,472
|
|
|||||
Derivative contracts
|
|
—
|
|
|
159,049
|
|
|
—
|
|
|
(147,751
|
)
|
|
11,298
|
|
|||||
Equity securities
|
|
1,503
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
1,529
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
243,716
|
|
|
189,334
|
|
|
—
|
|
|
(147,751
|
)
|
|
285,299
|
|
|||||
Derivative instruments associated with offsetting matched book positions
|
|
—
|
|
|
430,766
|
|
|
—
|
|
|
—
|
|
|
430,766
|
|
|||||
Trade and other payables:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Derivative contracts
(8)
|
|
—
|
|
|
44,678
|
|
|
—
|
|
|
—
|
|
|
44,678
|
|
|||||
Other liabilities
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
67
|
|
|||||
Total trade and other payables
|
|
—
|
|
|
44,678
|
|
|
67
|
|
|
—
|
|
|
44,745
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
243,716
|
|
|
$
|
664,778
|
|
|
$
|
67
|
|
|
$
|
(147,751
|
)
|
|
$
|
760,810
|
|
(1)
|
We had
$1.4 million
and
$2.6 million
in transfers of financial instruments from Level 1 to Level 2 during the
three and nine months ended June 30, 2016
, respectively. These transfers were a result of a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had
$161 thousand
and
$892 thousand
in transfers of financial instruments from Level 2 to Level 1 during the
three and nine months ended June 30, 2016
. These transfers were a result of an increase in the 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)
|
For derivative transactions not cleared through an exchange, and where permitted, 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 (see
Note 15
for additional information regarding offsetting financial instruments). Deposits associated with derivative transactions cleared through an exchange are included in deposits with clearing organizations on our Condensed Consolidated Statements of Financial Condition.
|
(3)
|
The portion of these investments we do not own is approximately
$54 million
as of
June 30, 2016
and are included as a component of noncontrolling interest in our Condensed Consolidated Statements of Financial Condition. The weighted average portion we own is approximately
$157 million
or
75%
of the total private equity investments of
$211 million
included in our Condensed Consolidated Statements of Financial Condition.
|
(4)
|
Other investments include
$75 million
of financial instruments that are related to obligations to perform under certain deferred compensation plans (see Note 2 on pages 117 - 118, and Note 24 on page 176, of our 2015 Form 10-K for further information regarding these plans).
|
(5)
|
Includes the fair value of forward commitments to purchase GNMA or FNMA (as hereinafter defined) MBS arising from our fixed income public finance operations. See Note 2 on page 107, and Note 21 on page 170 of our 2015 Form 10-K, as well as
Note 17
in this report, for additional information regarding the GNMA or FNMA MBS commitments.
|
(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)
|
Consists of derivatives arising from RJ Bank’s business operations, see
Note 14
for additional information.
|
September 30, 2015
|
|
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, 2015 |
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Assets at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
17,318
|
|
|
$
|
188,745
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
206,063
|
|
Corporate obligations
|
|
2,254
|
|
|
92,907
|
|
|
156
|
|
|
—
|
|
|
95,317
|
|
|||||
Government and agency obligations
|
|
7,781
|
|
|
108,166
|
|
|
—
|
|
|
—
|
|
|
115,947
|
|
|||||
Agency MBS and CMOs
|
|
253
|
|
|
117,317
|
|
|
—
|
|
|
—
|
|
|
117,570
|
|
|||||
Non-agency CMOs and ABS
|
|
—
|
|
|
46,931
|
|
|
9
|
|
|
—
|
|
|
46,940
|
|
|||||
Total debt securities
|
|
27,606
|
|
|
554,066
|
|
|
165
|
|
|
—
|
|
|
581,837
|
|
|||||
Derivative contracts
|
|
—
|
|
|
132,707
|
|
|
—
|
|
|
(90,621
|
)
|
|
42,086
|
|
|||||
Equity securities
|
|
24,859
|
|
|
3,485
|
|
|
—
|
|
|
—
|
|
|
28,344
|
|
|||||
Brokered certificates of deposit
|
|
—
|
|
|
30,803
|
|
|
—
|
|
|
—
|
|
|
30,803
|
|
|||||
Other
|
|
679
|
|
|
4,816
|
|
|
1,986
|
|
|
—
|
|
|
7,481
|
|
|||||
Total trading instruments
|
|
53,144
|
|
|
725,877
|
|
|
2,151
|
|
|
(90,621
|
)
|
|
690,551
|
|
|||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency MBS and CMOs
|
|
—
|
|
|
302,195
|
|
|
—
|
|
|
—
|
|
|
302,195
|
|
|||||
Non-agency CMOs
|
|
—
|
|
|
71,369
|
|
|
—
|
|
|
—
|
|
|
71,369
|
|
|||||
Other securities
|
|
1,402
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,402
|
|
|||||
ARS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Municipals
|
|
—
|
|
|
—
|
|
|
28,015
|
|
|
—
|
|
|
28,015
|
|
|||||
Preferred securities
|
|
—
|
|
|
—
|
|
|
110,749
|
|
|
—
|
|
|
110,749
|
|
|||||
Total available for sale securities
|
|
1,402
|
|
|
373,564
|
|
|
138,764
|
|
|
—
|
|
|
513,730
|
|
|||||
Private equity investments
|
|
—
|
|
|
—
|
|
|
209,088
|
|
(3)
|
—
|
|
|
209,088
|
|
|||||
Other investments
(4)
|
|
230,839
|
|
|
17,347
|
|
|
565
|
|
|
—
|
|
|
248,751
|
|
|||||
Derivative instruments associated with offsetting matched book positions
|
|
—
|
|
|
389,457
|
|
|
—
|
|
|
—
|
|
|
389,457
|
|
|||||
Deposits with clearing organizations:
(5)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agency obligations
|
|
29,701
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,701
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
(6)
|
|
—
|
|
|
917
|
|
|
—
|
|
|
—
|
|
|
917
|
|
|||||
Other assets
|
|
—
|
|
|
—
|
|
|
4,975
|
|
(7)
|
—
|
|
|
4,975
|
|
|||||
Total other assets
|
|
—
|
|
|
917
|
|
|
4,975
|
|
|
—
|
|
|
5,892
|
|
|||||
Total assets at fair value on a recurring basis
|
|
$
|
315,086
|
|
|
$
|
1,507,162
|
|
|
$
|
355,543
|
|
|
$
|
(90,621
|
)
|
|
$
|
2,087,170
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets at fair value on a nonrecurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank loans, net:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
28,082
|
|
|
$
|
37,830
|
|
|
$
|
—
|
|
|
$
|
65,912
|
|
Loans held for sale
(8)
|
|
—
|
|
|
14,334
|
|
|
—
|
|
|
—
|
|
|
14,334
|
|
|||||
Total bank loans, net
|
|
—
|
|
|
42,416
|
|
|
37,830
|
|
|
—
|
|
|
80,246
|
|
|||||
OREO
(9)
|
|
—
|
|
|
671
|
|
|
—
|
|
|
—
|
|
|
671
|
|
|||||
Total assets at fair value on a nonrecurring basis
|
|
$
|
—
|
|
|
$
|
43,087
|
|
|
$
|
37,830
|
|
|
$
|
—
|
|
|
$
|
80,917
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(continued on next page)
|
September 30, 2015
|
|
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, 2015 |
||||||||||
|
|
(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
|
|
$
|
17,966
|
|
|
$
|
347
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,313
|
|
Corporate obligations
|
|
167
|
|
|
33,017
|
|
|
—
|
|
|
—
|
|
|
33,184
|
|
|||||
Government obligations
|
|
205,658
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
205,658
|
|
|||||
Agency MBS and CMOs
|
|
5,007
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,007
|
|
|||||
Total debt securities
|
|
228,798
|
|
|
33,364
|
|
|
—
|
|
|
—
|
|
|
262,162
|
|
|||||
Derivative contracts
|
|
—
|
|
|
109,120
|
|
|
—
|
|
|
(88,881
|
)
|
|
20,239
|
|
|||||
Equity securities
|
|
3,098
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,098
|
|
|||||
Other securities
|
|
—
|
|
|
2,494
|
|
|
—
|
|
|
—
|
|
|
2,494
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
231,896
|
|
|
144,978
|
|
|
—
|
|
|
(88,881
|
)
|
|
287,993
|
|
|||||
Derivative instruments associated with offsetting matched book positions
|
|
—
|
|
|
389,457
|
|
|
—
|
|
|
—
|
|
|
389,457
|
|
|||||
Trade and other payables:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
(6)
|
|
—
|
|
|
7,545
|
|
|
—
|
|
|
—
|
|
|
7,545
|
|
|||||
Other liabilities
|
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
58
|
|
|||||
Total trade and other payables
|
|
—
|
|
|
7,545
|
|
|
58
|
|
|
—
|
|
|
7,603
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
231,896
|
|
|
$
|
541,980
|
|
|
$
|
58
|
|
|
$
|
(88,881
|
)
|
|
$
|
685,053
|
|
(1)
|
We had
$1.1 million
in transfers of financial instruments from Level 1 to Level 2 during the year ended
September 30, 2015
. These transfers were a result of a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had
$1.8 million
in transfers of financial instruments from Level 2 to Level 1 during the year ended
September 30, 2015
. These transfers were a result of an increase in the 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)
|
For derivative transactions not cleared through an exchange, and where permitted, 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 (see
Note 15
for additional information regarding offsetting financial instruments). Deposits associated with derivative transactions cleared through an exchange are included in deposits with clearing organizations on our Condensed Consolidated Statements of Financial Condition.
|
(3)
|
The portion of these investments we do not own is approximately
$52 million
as of
September 30, 2015
and are included as a component of noncontrolling interest in our Condensed Consolidated Statements of Financial Condition. The weighted average portion we own is approximately
$157 million
or
75%
of the total private equity investments of
$209 million
included in our Condensed Consolidated Statements of Financial Condition.
|
(4)
|
Other investments include
$106 million
of financial instruments that are related to obligations to perform under certain deferred compensation plans (see Note 2 on pages 117 - 118, and Note 24 on page 176, of our 2015 Form 10-K for further information regarding these plans).
|
(5)
|
Consists of deposits we provide to clearing organizations or exchanges that are in the form of marketable securities.
|
(6)
|
Consists of derivatives arising from RJ Bank’s business operations, see
Note 14
for additional information.
|
(7)
|
Includes the fair value of forward commitments to purchase GNMA or FNMA (as hereinafter defined) MBS arising from our fixed income public finance operations. See Note 2 on page 107, and Note 21 on page 170 of our 2015 Form 10-K for additional information.
|
(8)
|
Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost.
|
(9)
|
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.
|
Three months ended June 30, 2016 Level 3 assets at fair value
(in thousands) |
|||||||||||||||||||||||||||||||
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||||||||||
|
Trading instruments
|
|
Available for sale securities
|
|
Private equity, other investments and other assets
|
|
Payables-
trade and
other
|
||||||||||||||||||||||||
|
Non-
agency
CMOs &
ABS
|
|
Other
|
|
ARS –
municipals
|
|
ARS -
preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other
assets
|
|
Other
liabilities
|
||||||||||||||||
Fair value March 31, 2016
|
$
|
8
|
|
|
$
|
14,296
|
|
|
$
|
25,422
|
|
|
$
|
102,599
|
|
|
$
|
204,398
|
|
|
$
|
439
|
|
|
$
|
3,112
|
|
|
$
|
(67
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
—
|
|
|
12,865
|
|
(1)
|
(10
|
)
|
|
1,788
|
|
|
—
|
|
||||||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
(529
|
)
|
|
(2,453
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Purchases and contributions
|
—
|
|
|
5,598
|
|
|
—
|
|
|
—
|
|
|
2,819
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Sales
|
—
|
|
|
(14,715
|
)
|
|
—
|
|
|
—
|
|
|
(864
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Redemptions by issuer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||||||
Distributions
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,708
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Transfers:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Fair value June 30, 2016
|
$
|
7
|
|
|
$
|
5,131
|
|
|
$
|
24,893
|
|
|
$
|
100,146
|
|
|
$
|
210,510
|
|
|
$
|
425
|
|
|
$
|
4,900
|
|
|
$
|
(67
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
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
|
$
|
1
|
|
|
$
|
(34
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,350
|
|
|
$
|
(9
|
)
|
|
$
|
1,788
|
|
|
$
|
—
|
|
(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
$5.4 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
$7.5 million
.
|
(2)
|
Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
Nine months ended June 30, 2016 Level 3 assets at fair value
(in thousands) |
|||||||||||||||||||||||||||||||||||
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||||||||||||||
|
Trading instruments
|
|
Available for sale securities
|
|
Private equity, other investments and other assets
|
|
Payables-
trade and
other
|
||||||||||||||||||||||||||||
|
Corporate
obligations
|
|
Non-
agency
CMOs &
ABS
|
|
Other
|
|
ARS –
municipals
|
|
ARS -
preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other
assets
|
|
Other
liabilities
|
||||||||||||||||||
Fair value September 30, 2015
|
$
|
156
|
|
|
$
|
9
|
|
|
$
|
1,986
|
|
|
$
|
28,015
|
|
|
$
|
110,749
|
|
|
$
|
209,088
|
|
|
$
|
565
|
|
|
$
|
4,975
|
|
|
$
|
(58
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Included in earnings
|
(137
|
)
|
|
—
|
|
|
(397
|
)
|
|
133
|
|
|
—
|
|
|
17,305
|
|
(1)
|
1
|
|
|
(75
|
)
|
|
—
|
|
|||||||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,647
|
)
|
|
(10,603
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Purchases and contributions
|
75
|
|
|
—
|
|
|
44,085
|
|
|
—
|
|
|
—
|
|
|
9,780
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||||||
Sales
|
(94
|
)
|
|
—
|
|
|
(40,543
|
)
|
|
(1,583
|
)
|
|
—
|
|
|
(882
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Redemptions by issuer
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Distributions
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,781
|
)
|
|
(123
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Transfers:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Fair value June 30, 2016
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
5,131
|
|
|
$
|
24,893
|
|
|
$
|
100,146
|
|
|
$
|
210,510
|
|
|
$
|
425
|
|
|
$
|
4,900
|
|
|
$
|
(67
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
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
|
$
|
(40
|
)
|
|
$
|
2
|
|
|
$
|
(105
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,790
|
|
|
$
|
2
|
|
|
$
|
(75
|
)
|
|
$
|
—
|
|
(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
$9.5 million
which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately
$7.8 million
.
|
(2)
|
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 June 30, 2015 Level 3 assets at fair value
(in thousands) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||||||||||||||||
|
|
|
Trading instruments
|
|
Available for sale securities
|
|
Private equity, other investments and other assets
|
|
Payables-
trade and
other
|
||||||||||||||||||||||||||||||
|
Corporate Obligations
|
|
Non-
agency
CMOs &
ABS
|
|
Equity
securities
|
|
Other
|
|
ARS –
municipals
|
|
ARS -
preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other
assets
|
|
Other
liabilities
|
||||||||||||||||||||
Fair value March 31, 2015
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
14
|
|
|
$
|
780
|
|
|
$
|
89,614
|
|
|
$
|
112,448
|
|
|
$
|
220,944
|
|
|
$
|
916
|
|
|
$
|
2,196
|
|
|
$
|
(58
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Included in earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
11,040
|
|
|
—
|
|
|
12,700
|
|
(1)
|
16
|
|
|
(2,196
|
)
|
|
(1,687
|
)
|
||||||||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,051
|
)
|
|
(334
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Purchases and contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
1,458
|
|
|
—
|
|
|
—
|
|
|
1,022
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(578
|
)
|
|
(63,566
|
)
|
|
—
|
|
|
(1,696
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Redemptions by issuer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,428
|
)
|
|
(187
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Transfers:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Into Level 3
|
209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Fair value
June 30, 2015 |
$
|
209
|
|
|
$
|
10
|
|
|
$
|
14
|
|
|
$
|
1,634
|
|
|
$
|
28,037
|
|
|
$
|
112,114
|
|
|
$
|
209,542
|
|
|
$
|
737
|
|
|
$
|
—
|
|
|
$
|
(1,745
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,954
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
(3,868
|
)
|
(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
$9 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
$3.7 million
.
|
(2)
|
Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
Nine months ended June 30, 2015 Level 3 assets at fair value
(in thousands) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||||||||||||||||
|
|
|
Trading instruments
|
|
Available for sale securities
|
|
Private equity, other investments and other assets
|
|
Payables-
trade and
other
|
||||||||||||||||||||||||||||||
|
Corporate obligations
|
|
Non-
agency
CMOs &
ABS
|
|
Equity
securities
|
|
Other
|
|
ARS –
municipals
|
|
ARS -
preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other
assets
|
|
Other
liabilities
|
||||||||||||||||||||
Fair value September 30, 2014
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
44
|
|
|
$
|
2,309
|
|
|
$
|
86,696
|
|
|
$
|
114,039
|
|
|
$
|
211,666
|
|
|
$
|
1,731
|
|
|
$
|
787
|
|
|
$
|
(58
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Included in earnings
|
—
|
|
|
—
|
|
|
5
|
|
|
(66
|
)
|
|
11,042
|
|
|
25
|
|
|
29,760
|
|
(1)
|
97
|
|
|
(787
|
)
|
|
(1,687
|
)
|
||||||||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,090
|
)
|
|
(1,700
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Purchases and contributions
|
—
|
|
|
—
|
|
|
20
|
|
|
24,791
|
|
|
—
|
|
|
—
|
|
|
7,365
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,400
|
)
|
|
(63,611
|
)
|
|
—
|
|
|
(1,696
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Redemptions by issuer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
(681
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Distributions
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,553
|
)
|
|
(410
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Transfers:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Into Level 3
|
209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Out of Level 3
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Fair value
June 30, 2015 |
$
|
209
|
|
|
$
|
10
|
|
|
$
|
14
|
|
|
$
|
1,634
|
|
|
$
|
28,037
|
|
|
$
|
112,114
|
|
|
$
|
209,542
|
|
|
$
|
737
|
|
|
$
|
—
|
|
|
$
|
(1,745
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,015
|
|
|
$
|
97
|
|
|
$
|
—
|
|
|
$
|
(2,459
|
)
|
(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
$21.2 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
$8.6 million
.
|
(2)
|
Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
|
|
Net trading profit
|
|
Other revenues
|
|
Other comprehensive income
|
||||||
|
|
(in thousands)
|
||||||||||
For the three months ended June 30, 2016
|
|
|
|
|
|
|
||||||
Total (losses) gains included in revenues
|
|
$
|
(48
|
)
|
|
$
|
14,643
|
|
|
$
|
—
|
|
Change in unrealized (losses) gains for assets held at the end of the reporting period
|
|
$
|
(33
|
)
|
|
$
|
15,129
|
|
|
$
|
(2,982
|
)
|
|
|
|
|
|
|
|
||||||
For the nine months ended June 30, 2016
|
|
|
|
|
|
|
||||||
Total (losses) gains included in revenues
|
|
$
|
(534
|
)
|
|
$
|
17,364
|
|
|
$
|
—
|
|
Change in unrealized (losses) gains for assets held at the end of the reporting period
|
|
$
|
(143
|
)
|
|
$
|
17,717
|
|
|
$
|
(12,250
|
)
|
|
|
|
|
|
|
|
||||||
For the three months ended June 30, 2015
|
|
|
|
|
|
|
||||||
Total (losses) gains included in revenues
|
|
$
|
(26
|
)
|
|
$
|
19,873
|
|
|
—
|
|
|
Change in unrealized gains (losses) for assets held at the end of the reporting period
|
|
$
|
—
|
|
|
$
|
9,102
|
|
|
$
|
(9,385
|
)
|
|
|
|
|
|
|
|
||||||
For the nine months ended June 30, 2015
|
|
|
|
|
|
|
||||||
Total (losses) gains included in revenues
|
|
$
|
(61
|
)
|
|
$
|
38,450
|
|
|
$
|
—
|
|
Change in unrealized gains (losses) for assets held at the end of the reporting period
|
|
$
|
5
|
|
|
$
|
27,653
|
|
|
$
|
(7,790
|
)
|
Level 3 financial instrument
|
|
Fair value at
June 30,
2016
(in thousands)
|
|
Valuation technique(s)
|
|
Unobservable input
|
|
Range (weighted-average)
|
||
Recurring measurements:
|
|
|
|
|
|
|
|
|
||
Available for sale securities:
|
|
|
|
|
|
|
|
|
||
ARS:
|
|
|
|
|
|
|
|
|
||
Municipals - issuer is a municipality
|
|
$
|
10,238
|
|
|
Discounted cash flow
|
|
Average discount rate
(a)
|
|
5.37% - 6.44% (5.91%)
|
|
|
|
|
|
|
Average interest rates applicable to future interest income on the securities
(b)
|
|
0.90% - 1.73% (1.32%)
|
||
|
|
|
|
|
|
Prepayment year
(c)
|
|
2018 - 2025 (2022)
|
||
Municipals - tax-exempt preferred securities
|
|
$
|
14,655
|
|
|
Discounted cash flow
|
|
Average discount rate
(a)
|
|
4.56% - 5.56% (5.06%)
|
|
|
|
|
|
|
|
Average interest rates applicable to future interest income on the securities
(b)
|
|
0.75% - 0.75% (0.75%)
|
|
|
|
|
|
|
|
|
Prepayment year
(c)
|
|
2016 - 2021 (2021)
|
|
Preferred securities - taxable
|
|
$
|
100,146
|
|
|
Discounted cash flow
|
|
Average discount rate
(a)
|
|
4.79% - 6.30% (5.50%)
|
|
|
|
|
|
|
|
Average interest rates applicable to future interest income on the securities
(b)
|
|
1.02% - 2.17% (1.11%)
|
|
|
|
|
|
|
|
|
Prepayment year
(c)
|
|
2016 - 2021 (2021)
|
|
Private equity investments:
|
|
$
|
61,466
|
|
|
Income or market approach:
|
|
|
|
|
|
|
|
|
Scenario 1 - income approach - discounted cash flow
|
|
Discount rate
(a)
|
|
13% - 20% (17.8%)
|
||
|
|
|
|
|
|
Terminal growth rate of cash flows
|
|
3% - 3% (3%)
|
||
|
|
|
|
|
|
Terminal year
|
|
2017 - 2021 (2020)
|
||
|
|
|
|
Scenario 2 - market approach - market multiple method
|
|
EBITDA Multiple
(d)
|
|
4.75 - 7.5 (6.1)
|
||
|
|
|
|
|
|
Weighting assigned to outcome of scenario 1/scenario 2
|
|
80%/20%
|
||
|
|
$
|
149,044
|
|
|
Transaction price or other investment-specific events
(e)
|
|
Not meaningful
(e)
|
|
Not meaningful
(e)
|
Nonrecurring measurements:
|
|
|
|
|
|
|
||||
Impaired loans: residential
|
|
$
|
22,813
|
|
|
Discounted cash flow
|
|
Prepayment rate
|
|
7 yrs. - 12 yrs. (10.21 yrs.)
|
Impaired loans: corporate
|
|
$
|
30,185
|
|
|
Appraisal or discounted cash flow value
(f)
|
|
Not meaningful
(f)
|
|
Not meaningful
(f)
|
(a)
|
Represents discount rates used when we have determined that market participants would take these discounts into account when pricing the investments.
|
(b)
|
Future interest rates are projected based upon a forward interest rate path, 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.
|
(c)
|
Assumed year of at least a partial redemption of the outstanding security by the issuer.
|
(d)
|
Represents amounts used when we have determined that market participants would use such multiples when pricing the investments.
|
(e)
|
Certain private equity investments are valued initially at the transaction price until either our annual review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, when any of which indicate that a change in the carrying values of these investments is appropriate.
|
(f)
|
The valuation techniques used for the impaired corporate loan portfolio are appraisals less selling costs for the collateral dependent loans and discounted cash flows for the remaining impaired loans that are not collateral dependent.
|
|
|
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)
|
||||||||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
(1)
|
|
$
|
—
|
|
|
$
|
105,436
|
|
|
$
|
14,640,658
|
|
|
$
|
14,746,094
|
|
|
$
|
14,660,084
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits
|
|
$
|
—
|
|
|
$
|
13,397,658
|
|
|
$
|
339,816
|
|
|
$
|
13,737,474
|
|
|
$
|
13,732,194
|
|
Other borrowings
(2)
|
|
$
|
—
|
|
|
$
|
35,696
|
|
|
$
|
—
|
|
|
$
|
35,696
|
|
|
$
|
34,495
|
|
Senior notes payable
|
|
$
|
369,600
|
|
|
$
|
636,388
|
|
|
$
|
—
|
|
|
$
|
1,005,988
|
|
|
$
|
899,342
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
(1)
|
|
$
|
—
|
|
|
$
|
105,199
|
|
|
$
|
12,799,065
|
|
|
$
|
12,904,264
|
|
|
$
|
12,907,776
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits
|
|
$
|
—
|
|
|
$
|
11,564,963
|
|
|
$
|
358,981
|
|
|
$
|
11,923,944
|
|
|
$
|
11,919,881
|
|
Other borrowings
(2)
|
|
$
|
—
|
|
|
$
|
38,455
|
|
|
$
|
—
|
|
|
$
|
38,455
|
|
|
$
|
37,716
|
|
Senior notes payable
|
|
$
|
368,760
|
|
|
$
|
892,963
|
|
|
$
|
—
|
|
|
$
|
1,261,723
|
|
|
$
|
1,149,222
|
|
(1)
|
Excludes all impaired loans and loans held for sale which have been recorded at fair value in the Condensed Consolidated Statements of Financial Condition at
June 30, 2016
and
September 30, 2015
.
|
(2)
|
Excludes the components of other borrowings that are recorded at amounts that approximate their fair value in the Condensed Consolidated Statements of Financial Condition at
June 30, 2016
and
September 30, 2015
.
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||||
|
Trading
instruments
|
|
Instruments
sold but not
yet purchased
|
|
Trading
instruments
|
|
Instruments
sold but not
yet purchased
|
||||||||
|
(in thousands)
|
||||||||||||||
Municipal and provincial obligations
|
$
|
276,737
|
|
|
$
|
839
|
|
|
$
|
206,063
|
|
|
$
|
18,313
|
|
Corporate obligations
|
86,290
|
|
|
18,388
|
|
|
95,317
|
|
|
33,184
|
|
||||
Government and agency obligations
|
108,982
|
|
|
233,302
|
|
|
115,947
|
|
|
205,658
|
|
||||
Agency MBS and CMOs
|
166,922
|
|
|
6,575
|
|
|
117,570
|
|
|
5,007
|
|
||||
Non-agency CMOs and ABS
|
40,858
|
|
|
13,368
|
|
|
46,940
|
|
|
—
|
|
||||
Total debt securities
|
679,789
|
|
|
272,472
|
|
|
581,837
|
|
|
262,162
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Derivative contracts
(1)
|
58,789
|
|
|
11,298
|
|
|
42,086
|
|
|
20,239
|
|
||||
Equity securities
|
55,832
|
|
|
1,529
|
|
|
28,344
|
|
|
3,098
|
|
||||
Brokered certificates of deposit
|
44,863
|
|
|
—
|
|
|
30,803
|
|
|
—
|
|
||||
Other
|
5,675
|
|
|
—
|
|
|
7,481
|
|
|
2,494
|
|
||||
Total
|
$
|
844,948
|
|
|
$
|
285,299
|
|
|
$
|
690,551
|
|
|
$
|
287,993
|
|
(1)
|
Represents the derivative contracts held for trading purposes. These balances do not include all derivative instruments. See
Note 14
for further information regarding all of our derivative transactions, and see
Note 15
for additional information regarding offsetting financial instruments.
|
|
Cost basis
|
|
Gross
unrealized gains
|
|
Gross
unrealized losses
|
|
Fair value
|
||||||||
|
(in thousands)
|
||||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
||||||||
Agency MBS and CMOs
|
$
|
353,275
|
|
|
$
|
2,719
|
|
|
$
|
(348
|
)
|
|
$
|
355,646
|
|
Non-agency CMOs
(1)
|
65,487
|
|
|
4
|
|
|
(3,906
|
)
|
|
61,585
|
|
||||
Other securities
|
1,575
|
|
|
—
|
|
|
(61
|
)
|
|
1,514
|
|
||||
Total RJ Bank available for sale securities
|
420,337
|
|
|
2,723
|
|
|
(4,315
|
)
|
|
418,745
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Auction rate securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal obligations
|
27,491
|
|
|
14
|
|
|
(2,612
|
)
|
|
24,893
|
|
||||
Preferred securities
|
104,302
|
|
|
—
|
|
|
(4,156
|
)
|
|
100,146
|
|
||||
Total auction rate securities
|
131,793
|
|
|
14
|
|
|
(6,768
|
)
|
|
125,039
|
|
||||
Total available for sale securities
|
$
|
552,130
|
|
|
$
|
2,737
|
|
|
$
|
(11,083
|
)
|
|
$
|
543,784
|
|
|
|
|
|
|
|
|
|
||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agency MBS and CMOs
|
$
|
301,001
|
|
|
$
|
1,538
|
|
|
$
|
(344
|
)
|
|
$
|
302,195
|
|
Non-agency CMOs
(2)
|
75,678
|
|
|
18
|
|
|
(4,327
|
)
|
|
71,369
|
|
||||
Other securities
|
1,575
|
|
|
—
|
|
|
(173
|
)
|
|
1,402
|
|
||||
Total RJ Bank available for sale securities
|
378,254
|
|
|
1,556
|
|
|
(4,844
|
)
|
|
374,966
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Auction rate securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal obligations
|
28,966
|
|
|
576
|
|
|
(1,527
|
)
|
|
28,015
|
|
||||
Preferred securities
|
104,302
|
|
|
6,447
|
|
|
—
|
|
|
110,749
|
|
||||
Total auction rate securities
|
133,268
|
|
|
7,023
|
|
|
(1,527
|
)
|
|
138,764
|
|
||||
Total available for sale securities
|
$
|
511,522
|
|
|
$
|
8,579
|
|
|
$
|
(6,371
|
)
|
|
$
|
513,730
|
|
(1)
|
As of
June 30, 2016
, the non-credit portion of other-than-temporary impairment (“OTTI”) recorded in accumulated other comprehensive income (loss) (“AOCI”) was
$3.1 million
(before taxes). See
Note 18
for additional information.
|
(2)
|
As of
September 30, 2015
, the non-credit portion of OTTI recorded in AOCI was
$3.6 million
(before taxes).
|
|
June 30, 2016
|
||||||||||||||||||
|
Within one year
|
|
After one but
within five
years
|
|
After five but
within ten
years
|
|
After ten years
|
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Agency MBS & CMOs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
2
|
|
|
$
|
23,590
|
|
|
$
|
84,220
|
|
|
$
|
245,463
|
|
|
$
|
353,275
|
|
Carrying value
|
2
|
|
|
24,001
|
|
|
84,963
|
|
|
246,680
|
|
|
355,646
|
|
|||||
Weighted-average yield
|
0.88
|
%
|
|
1.61
|
%
|
|
1.50
|
%
|
|
1.41
|
%
|
|
1.44
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-agency CMOs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
65,487
|
|
|
$
|
65,487
|
|
Carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
61,585
|
|
|
61,585
|
|
|||||
Weighted-average yield
|
—
|
|
|
—
|
|
|
—
|
|
|
2.54
|
%
|
|
2.54
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,575
|
|
|
$
|
1,575
|
|
Carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
1,514
|
|
|
1,514
|
|
|||||
Weighted-average yield
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sub-total agency MBS & CMOs, non-agency CMOs, and other securities:
|
|
|
|
|
|
|
|||||||||||||
Amortized cost
|
$
|
2
|
|
|
$
|
23,590
|
|
|
$
|
84,220
|
|
|
$
|
312,525
|
|
|
$
|
420,337
|
|
Carrying value
|
2
|
|
|
24,001
|
|
|
84,963
|
|
|
309,779
|
|
|
418,745
|
|
|||||
Weighted-average yield
|
0.88
|
%
|
|
1.61
|
%
|
|
1.50
|
%
|
|
1.63
|
%
|
|
1.60
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Auction rate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Municipal obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27,491
|
|
|
$
|
27,491
|
|
Carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
24,893
|
|
|
24,893
|
|
|||||
Weighted-average yield
|
—
|
|
|
—
|
|
|
—
|
|
|
0.90
|
%
|
|
0.90
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
104,302
|
|
|
$
|
104,302
|
|
Carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
100,146
|
|
|
100,146
|
|
|||||
Weighted-average yield
|
—
|
|
|
—
|
|
|
—
|
|
|
0.85
|
%
|
|
0.85
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sub-total auction rate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
131,793
|
|
|
$
|
131,793
|
|
Carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
125,039
|
|
|
125,039
|
|
|||||
Weighted-average yield
|
—
|
|
|
—
|
|
|
—
|
|
|
0.86
|
%
|
|
0.86
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
2
|
|
|
$
|
23,590
|
|
|
$
|
84,220
|
|
|
$
|
444,318
|
|
|
$
|
552,130
|
|
Carrying value
|
2
|
|
|
24,001
|
|
|
84,963
|
|
|
434,818
|
|
|
543,784
|
|
|||||
Weighted-average yield
|
0.88
|
%
|
|
1.61
|
%
|
|
1.50
|
%
|
|
1.41
|
%
|
|
1.43
|
%
|
|
June 30, 2016
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Agency MBS and CMOs
|
$
|
70,899
|
|
|
$
|
(224
|
)
|
|
$
|
23,123
|
|
|
$
|
(124
|
)
|
|
$
|
94,022
|
|
|
$
|
(348
|
)
|
Non-agency CMOs
|
4,306
|
|
|
(28
|
)
|
|
56,681
|
|
|
(3,878
|
)
|
|
60,987
|
|
|
(3,906
|
)
|
||||||
Other securities
|
1,514
|
|
|
(61
|
)
|
|
—
|
|
|
—
|
|
|
1,514
|
|
|
(61
|
)
|
||||||
ARS municipal obligations
|
13,125
|
|
|
(776
|
)
|
|
11,520
|
|
|
(1,836
|
)
|
|
24,645
|
|
|
(2,612
|
)
|
||||||
ARS preferred securities
|
98,617
|
|
|
(4,156
|
)
|
|
—
|
|
|
—
|
|
|
98,617
|
|
|
(4,156
|
)
|
||||||
Total
|
$
|
188,461
|
|
|
$
|
(5,245
|
)
|
|
$
|
91,324
|
|
|
$
|
(5,838
|
)
|
|
$
|
279,785
|
|
|
$
|
(11,083
|
)
|
|
September 30, 2015
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Agency MBS and CMOs
|
$
|
3,488
|
|
|
$
|
(37
|
)
|
|
$
|
29,524
|
|
|
$
|
(307
|
)
|
|
$
|
33,012
|
|
|
$
|
(344
|
)
|
Non-agency CMOs
|
—
|
|
|
—
|
|
|
65,854
|
|
|
(4,327
|
)
|
|
65,854
|
|
|
(4,327
|
)
|
||||||
Other securities
|
1,402
|
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
1,402
|
|
|
(173
|
)
|
||||||
ARS municipal obligations
|
225
|
|
|
(3
|
)
|
|
11,627
|
|
|
(1,524
|
)
|
|
11,852
|
|
|
(1,527
|
)
|
||||||
Total
|
$
|
5,115
|
|
|
$
|
(213
|
)
|
|
$
|
107,005
|
|
|
$
|
(6,158
|
)
|
|
$
|
112,120
|
|
|
$
|
(6,371
|
)
|
|
June 30, 2016
|
||
|
Range
|
|
Weighted-
average
(1)
|
Default rate
|
0% - 6.7%
|
|
3.00%
|
Loss severity
|
0% - 66.5%
|
|
35.99%
|
Prepayment rate
|
5.6% - 22.4%
|
|
11.38%
|
(1)
|
Represents the expected activity for the next twelve months.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Amount related to credit losses on securities we held at the beginning of the period
|
$
|
11,847
|
|
|
$
|
18,703
|
|
|
$
|
11,847
|
|
|
$
|
18,703
|
|
Decreases to the amount related to credit loss for securities sold during the period
|
—
|
|
|
(6,856
|
)
|
|
—
|
|
|
(6,856
|
)
|
||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Amount related to credit losses on securities we held at the end of the period
|
$
|
11,847
|
|
|
$
|
11,847
|
|
|
$
|
11,847
|
|
|
$
|
11,847
|
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||
|
Balance
|
|
%
|
|
Balance
|
|
%
|
||||||
|
($ in thousands)
|
||||||||||||
Loans held for sale, net
(1)
|
$
|
206,918
|
|
|
1
|
%
|
|
$
|
119,519
|
|
|
1
|
%
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
||
Domestic:
|
|
|
|
|
|
|
|
||||||
C&I loans
|
6,209,975
|
|
|
42
|
%
|
|
5,893,631
|
|
|
44
|
%
|
||
CRE construction loans
|
164,798
|
|
|
1
|
%
|
|
126,402
|
|
|
1
|
%
|
||
CRE loans
|
2,099,587
|
|
|
14
|
%
|
|
1,679,332
|
|
|
13
|
%
|
||
Tax-exempt loans
|
701,339
|
|
|
5
|
%
|
|
484,537
|
|
|
4
|
%
|
||
Residential mortgage loans
|
2,349,086
|
|
|
16
|
%
|
|
1,959,786
|
|
|
15
|
%
|
||
SBL
|
1,825,585
|
|
|
12
|
%
|
|
1,479,562
|
|
|
11
|
%
|
||
Foreign:
|
|
|
|
|
|
|
|
||||||
C&I loans
|
1,109,219
|
|
|
7
|
%
|
|
1,034,387
|
|
|
8
|
%
|
||
CRE construction loans
|
13,989
|
|
|
—
|
|
|
35,954
|
|
|
—
|
|
||
CRE loans
|
352,786
|
|
|
2
|
%
|
|
374,822
|
|
|
3
|
%
|
||
Residential mortgage loans
|
2,301
|
|
|
—
|
|
|
2,828
|
|
|
—
|
|
||
SBL
|
1,905
|
|
|
—
|
|
|
1,942
|
|
|
—
|
|
||
Total loans held for investment
|
14,830,570
|
|
|
|
|
|
13,073,183
|
|
|
|
|
||
Net unearned income and deferred expenses
|
(41,090
|
)
|
|
|
|
|
(32,424
|
)
|
|
|
|
||
Total loans held for investment, net
(1)
|
14,789,480
|
|
|
|
|
|
13,040,759
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Total loans held for sale and investment
|
14,996,398
|
|
|
100
|
%
|
|
13,160,278
|
|
|
100
|
%
|
||
Allowance for loan losses
|
(196,882
|
)
|
|
|
|
|
(172,257
|
)
|
|
|
|
||
Bank loans, net
|
$
|
14,799,516
|
|
|
|
|
|
$
|
12,988,021
|
|
|
|
|
(1)
|
Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs.
|
|
C&I
|
|
CRE
|
|
Residential mortgage
|
|
Total
|
||||||||
|
(in thousands)
|
||||||||||||||
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
||||||||
Purchases
|
$
|
144,604
|
|
|
$
|
12,804
|
|
|
$
|
90,801
|
|
(3)
|
$
|
248,209
|
|
Sales
(1)
|
$
|
21,003
|
|
(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,003
|
|
|
|
|
|
|
|
|
|
||||||||
Nine months ended June 30, 2016
|
|
|
|
|
|
|
|
||||||||
Purchases
|
$
|
293,711
|
|
|
$
|
19,844
|
|
|
$
|
301,624
|
|
(4)
|
$
|
615,179
|
|
Sales
(1)
|
$
|
92,818
|
|
(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92,818
|
|
|
|
|
|
|
|
|
|
||||||||
Three months ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
Purchases
|
$
|
186,982
|
|
|
$
|
—
|
|
|
$
|
5,381
|
|
|
$
|
192,363
|
|
Sales
(1)
|
$
|
23,068
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,068
|
|
|
|
|
|
|
|
|
|
||||||||
Nine months ended June 30, 2015
|
|
|
|
|
|
|
|
||||||||
Purchases
|
$
|
447,263
|
|
|
$
|
—
|
|
|
$
|
218,690
|
|
(5)
|
$
|
665,953
|
|
Sales
(2)
|
$
|
55,428
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55,428
|
|
(1)
|
Represents the recorded investment of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. Corporate loan sales generally occur as part of a loan workout situation.
|
(2)
|
Loans transferred to held for sale and still outstanding amounted to
$39.8 million
as of
June 30, 2016
.
|
(3)
|
Includes the purchase from another financial institution of residential mortgage loans totaling
$62.4 million
in principal loan balance.
|
(4)
|
Includes purchases from another financial institution of residential mortgage loans totaling
$242 million
in principal loan balance.
|
(5)
|
Includes the purchase from another financial institution of residential mortgage loans totaling
$207.3 million
in principal loan balance.
|
|
30-89
days and accruing
|
|
90 days or more
and accruing
|
|
Total past due and accruing
|
|
Nonaccrual
(1)
|
|
Current and accruing
|
|
Total loans held for
investment
(2)
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
As of June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
$
|
148
|
|
|
$
|
—
|
|
|
$
|
148
|
|
|
$
|
36,264
|
|
|
$
|
7,282,782
|
|
|
$
|
7,319,194
|
|
CRE construction loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
178,787
|
|
|
178,787
|
|
||||||
CRE loans
|
—
|
|
|
—
|
|
|
—
|
|
|
4,364
|
|
|
2,448,009
|
|
|
2,452,373
|
|
||||||
Tax-exempt loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
701,339
|
|
|
701,339
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage loans
|
2,395
|
|
|
—
|
|
|
2,395
|
|
|
40,628
|
|
|
2,288,253
|
|
|
2,331,276
|
|
||||||
Home equity loans/lines
|
77
|
|
|
—
|
|
|
77
|
|
|
84
|
|
|
19,950
|
|
|
20,111
|
|
||||||
SBL
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,827,490
|
|
|
1,827,490
|
|
||||||
Total loans held for investment, net
|
$
|
2,620
|
|
|
$
|
—
|
|
|
$
|
2,620
|
|
|
$
|
81,340
|
|
|
$
|
14,746,610
|
|
|
$
|
14,830,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
$
|
163
|
|
|
$
|
—
|
|
|
$
|
163
|
|
|
$
|
—
|
|
|
$
|
6,927,855
|
|
|
$
|
6,928,018
|
|
CRE construction loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
162,356
|
|
|
162,356
|
|
||||||
CRE loans
|
—
|
|
|
—
|
|
|
—
|
|
|
4,796
|
|
|
2,049,358
|
|
|
2,054,154
|
|
||||||
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
484,537
|
|
|
484,537
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First mortgage loans
|
2,906
|
|
|
—
|
|
|
2,906
|
|
|
47,504
|
|
|
1,891,384
|
|
|
1,941,794
|
|
||||||
Home equity loans/lines
|
30
|
|
|
—
|
|
|
30
|
|
|
319
|
|
|
20,471
|
|
|
20,820
|
|
||||||
SBL
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,481,504
|
|
|
1,481,504
|
|
||||||
Total loans held for investment, net
|
$
|
3,099
|
|
|
$
|
—
|
|
|
$
|
3,099
|
|
|
$
|
52,619
|
|
|
$
|
13,017,465
|
|
|
$
|
13,073,183
|
|
(1)
|
Includes
$54.8 million
and
$22.4 million
of nonaccrual loans at
June 30, 2016
and
September 30, 2015
, respectively, which are performing pursuant to their contractual terms.
|
(2)
|
Excludes any net unearned income and deferred expenses.
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||||||||||||
|
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
|
$
|
36,264
|
|
|
$
|
36,444
|
|
|
$
|
10,443
|
|
|
$
|
10,599
|
|
|
$
|
11,204
|
|
|
$
|
1,132
|
|
Residential - first mortgage loans
|
32,533
|
|
|
43,944
|
|
|
2,715
|
|
|
35,442
|
|
|
48,828
|
|
|
4,014
|
|
||||||
Total
|
68,797
|
|
|
80,388
|
|
|
13,158
|
|
|
46,041
|
|
|
60,032
|
|
|
5,146
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired loans without allowance for loan losses:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CRE loans
|
4,364
|
|
|
11,611
|
|
|
—
|
|
|
4,796
|
|
|
11,611
|
|
|
—
|
|
||||||
Residential - first mortgage loans
|
17,778
|
|
|
26,386
|
|
|
—
|
|
|
20,221
|
|
|
29,598
|
|
|
—
|
|
||||||
Total
|
22,142
|
|
|
37,997
|
|
|
—
|
|
|
25,017
|
|
|
41,209
|
|
|
—
|
|
||||||
Total impaired loans
|
$
|
90,939
|
|
|
$
|
118,385
|
|
|
$
|
13,158
|
|
|
$
|
71,058
|
|
|
$
|
101,241
|
|
|
$
|
5,146
|
|
(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 June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Average impaired loan balance:
|
|
|
|
|
|
|
|
||||||||
C&I loans
|
$
|
18,836
|
|
|
$
|
11,059
|
|
|
$
|
12,200
|
|
|
$
|
11,508
|
|
CRE loans
|
4,408
|
|
|
15,053
|
|
|
4,540
|
|
|
16,613
|
|
||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
||||||||
First mortgage loans
|
50,797
|
|
|
57,305
|
|
|
52,414
|
|
|
60,097
|
|
||||
Total
|
$
|
74,041
|
|
|
$
|
83,417
|
|
|
$
|
69,154
|
|
|
$
|
88,218
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income recognized:
|
|
|
|
|
|
|
|
||||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
||||||||
First mortgage loans
|
$
|
320
|
|
|
$
|
409
|
|
|
$
|
1,018
|
|
|
$
|
1,139
|
|
Total
|
$
|
320
|
|
|
$
|
409
|
|
|
$
|
1,018
|
|
|
$
|
1,139
|
|
|
Number of
contracts
|
|
Pre-modification
outstanding
recorded
investment
|
|
Post-modification
outstanding
recorded
investment
|
|||||
|
($ in thousands)
|
|||||||||
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
||
Residential – first mortgage loans
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|||||
Nine months ended June 30, 2016
|
|
|
|
|
|
|
|
|
||
Residential – first mortgage loans
|
1
|
|
|
$
|
236
|
|
|
$
|
236
|
|
|
|
|
|
|
|
|||||
Three months ended June 30, 2015
|
|
|
|
|
|
|||||
Residential – first mortgage loans
|
3
|
|
|
$
|
836
|
|
|
$
|
897
|
|
|
|
|
|
|
|
|||||
Nine months ended June 30, 2015
|
|
|
|
|
|
|||||
Residential – first mortgage loans
|
5
|
|
|
$
|
1,081
|
|
|
$
|
1,145
|
|
|
|
Pass
|
|
Special mention
(1)
|
|
Substandard
(1)
|
|
Doubtful
(1)
|
|
Total
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
7,115,986
|
|
|
$
|
72,887
|
|
|
$
|
130,321
|
|
|
$
|
—
|
|
|
$
|
7,319,194
|
|
CRE construction
|
|
178,787
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
178,787
|
|
|||||
CRE
|
|
2,447,839
|
|
|
—
|
|
|
4,534
|
|
|
—
|
|
|
2,452,373
|
|
|||||
Tax-exempt
|
|
701,339
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
701,339
|
|
|||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage
|
|
2,264,158
|
|
|
14,155
|
|
|
52,963
|
|
|
—
|
|
|
2,331,276
|
|
|||||
Home equity
|
|
19,626
|
|
|
313
|
|
|
172
|
|
|
—
|
|
|
20,111
|
|
|||||
SBL
|
|
1,827,490
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,827,490
|
|
|||||
Total
|
|
$
|
14,555,225
|
|
|
$
|
87,355
|
|
|
$
|
187,990
|
|
|
$
|
—
|
|
|
$
|
14,830,570
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|||||||||||
C&I
|
|
$
|
6,739,179
|
|
|
$
|
97,623
|
|
|
$
|
91,216
|
|
|
$
|
—
|
|
|
$
|
6,928,018
|
|
CRE construction
|
|
162,356
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
162,356
|
|
|||||
CRE
|
|
2,034,692
|
|
|
39
|
|
|
19,423
|
|
|
—
|
|
|
2,054,154
|
|
|||||
Tax-exempt
|
|
484,537
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
484,537
|
|
|||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage
|
|
1,868,044
|
|
|
14,890
|
|
|
58,860
|
|
|
—
|
|
|
1,941,794
|
|
|||||
Home equity
|
|
20,372
|
|
|
128
|
|
|
320
|
|
|
—
|
|
|
20,820
|
|
|||||
SBL
|
|
1,481,504
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,481,504
|
|
|||||
Total
|
|
$
|
12,790,684
|
|
|
$
|
112,680
|
|
|
$
|
169,819
|
|
|
$
|
—
|
|
|
$
|
13,073,183
|
|
(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%
|
$
|
716,985
|
|
LTV greater than 50% but less than 80%
|
1,194,729
|
|
|
LTV greater than 80% but less than 100%
|
80,102
|
|
|
LTV greater than 100%, but less than 120%
|
11,499
|
|
|
LTV greater than 120%
|
1,113
|
|
|
Total
|
$
|
2,004,428
|
|
(1)
|
Excludes loans that have full repurchase recourse for any delinquent loans.
|
|
|
Loans held for investment
|
||||||||||||||||||||||||||
|
|
C&I
|
|
CRE
construction
|
|
CRE
|
|
Tax-exempt
|
|
Residential mortgage
|
|
SBL
(1)
|
|
Total
|
||||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||||||
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at beginning of period
|
|
$
|
137,299
|
|
|
$
|
2,553
|
|
|
$
|
32,668
|
|
|
$
|
7,034
|
|
|
$
|
11,254
|
|
|
$
|
3,412
|
|
|
$
|
194,220
|
|
Provision for loan losses
|
|
223
|
|
|
898
|
|
|
445
|
|
|
974
|
|
|
722
|
|
|
190
|
|
|
3,452
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Charge-offs
|
|
(782
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
(829
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|
56
|
|
|
147
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(782
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
56
|
|
|
(682
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
(73
|
)
|
|
(18
|
)
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(108
|
)
|
|||||||
Balance at June 30, 2016
|
|
$
|
136,667
|
|
|
$
|
3,433
|
|
|
$
|
33,096
|
|
|
$
|
8,008
|
|
|
$
|
12,020
|
|
|
$
|
3,658
|
|
|
$
|
196,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Nine months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at beginning of period
|
|
$
|
117,623
|
|
|
$
|
2,707
|
|
|
$
|
30,486
|
|
|
$
|
5,949
|
|
|
$
|
12,526
|
|
|
$
|
2,966
|
|
|
$
|
172,257
|
|
Provision (benefit) for loan losses
|
|
21,398
|
|
|
746
|
|
|
2,557
|
|
|
2,059
|
|
|
(384
|
)
|
|
615
|
|
|
26,991
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Charge-offs
|
|
(2,476
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(963
|
)
|
|
—
|
|
|
(3,439
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
841
|
|
|
77
|
|
|
918
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(2,476
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(122
|
)
|
|
77
|
|
|
(2,521
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
122
|
|
|
(20
|
)
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|||||||
Balance at June 30, 2016
|
|
$
|
136,667
|
|
|
$
|
3,433
|
|
|
$
|
33,096
|
|
|
$
|
8,008
|
|
|
$
|
12,020
|
|
|
$
|
3,658
|
|
|
$
|
196,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Three months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at beginning of period
|
|
$
|
111,125
|
|
|
$
|
1,675
|
|
|
$
|
25,717
|
|
|
$
|
3,909
|
|
|
$
|
15,076
|
|
|
$
|
2,506
|
|
|
$
|
160,008
|
|
(Benefit) provision for loan losses
|
|
(1,365
|
)
|
|
301
|
|
|
(1,912
|
)
|
|
239
|
|
|
(545
|
)
|
|
273
|
|
|
(3,009
|
)
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(687
|
)
|
|
—
|
|
|
(687
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
3,773
|
|
|
—
|
|
|
409
|
|
|
6
|
|
|
4,188
|
|
|||||||
Net (charge-offs)/recoveries
|
|
—
|
|
|
—
|
|
|
3,773
|
|
|
—
|
|
|
(278
|
)
|
|
6
|
|
|
3,501
|
|
|||||||
Foreign exchange translation adjustment
|
|
83
|
|
|
5
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
131
|
|
|||||||
Balance at June 30, 2015
|
|
$
|
109,843
|
|
|
$
|
1,981
|
|
|
$
|
27,621
|
|
|
$
|
4,148
|
|
|
$
|
14,253
|
|
|
$
|
2,785
|
|
|
$
|
160,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Nine months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at beginning of period
|
|
$
|
103,179
|
|
|
$
|
1,594
|
|
|
$
|
25,022
|
|
|
$
|
1,380
|
|
|
$
|
14,350
|
|
|
$
|
2,049
|
|
|
$
|
147,574
|
|
Provision (benefit) for loan losses
|
|
6,999
|
|
|
418
|
|
|
(850
|
)
|
|
2,768
|
|
|
242
|
|
|
716
|
|
|
10,293
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Charge-offs
|
|
(238
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,325
|
)
|
|
—
|
|
|
(1,563
|
)
|
|||||||
Recoveries
|
|
536
|
|
|
—
|
|
|
3,773
|
|
|
—
|
|
|
986
|
|
|
20
|
|
|
5,315
|
|
|||||||
Net recoveries/(charge-offs)
|
|
298
|
|
|
—
|
|
|
3,773
|
|
|
—
|
|
|
(339
|
)
|
|
20
|
|
|
3,752
|
|
|||||||
Foreign exchange translation adjustment
|
|
(633
|
)
|
|
(31
|
)
|
|
(324
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(988
|
)
|
|||||||
Balance at June 30, 2015
|
|
$
|
109,843
|
|
|
$
|
1,981
|
|
|
$
|
27,621
|
|
|
$
|
4,148
|
|
|
$
|
14,253
|
|
|
$
|
2,785
|
|
|
$
|
160,631
|
|
(1)
|
The SBL portfolio segment includes securities based and other consumer loans.
|
|
|
Loans held for investment
|
||||||||||||||||||||||
|
|
Allowance for loan losses
|
|
Recorded investment
(1)
|
||||||||||||||||||||
|
|
Individually evaluated for impairment
|
|
Collectively evaluated for impairment
|
|
Total
|
|
Individually evaluated for impairment
|
|
Collectively evaluated for impairment
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
10,443
|
|
|
$
|
126,224
|
|
|
$
|
136,667
|
|
|
$
|
36,264
|
|
|
$
|
7,282,930
|
|
|
$
|
7,319,194
|
|
CRE construction
|
|
—
|
|
|
3,433
|
|
|
3,433
|
|
|
—
|
|
|
178,787
|
|
|
178,787
|
|
||||||
CRE
|
|
—
|
|
|
33,096
|
|
|
33,096
|
|
|
4,364
|
|
|
2,448,009
|
|
|
2,452,373
|
|
||||||
Tax-exempt
|
|
—
|
|
|
8,008
|
|
|
8,008
|
|
|
—
|
|
|
701,339
|
|
|
701,339
|
|
||||||
Residential mortgage
|
|
2,725
|
|
|
9,295
|
|
|
12,020
|
|
|
56,958
|
|
|
2,294,429
|
|
|
2,351,387
|
|
||||||
SBL
|
|
—
|
|
|
3,658
|
|
|
3,658
|
|
|
—
|
|
|
1,827,490
|
|
|
1,827,490
|
|
||||||
Total
|
|
$
|
13,168
|
|
|
$
|
183,714
|
|
|
$
|
196,882
|
|
|
$
|
97,586
|
|
|
$
|
14,732,984
|
|
|
$
|
14,830,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
1,132
|
|
|
$
|
116,491
|
|
|
$
|
117,623
|
|
|
$
|
10,599
|
|
|
$
|
6,917,419
|
|
|
$
|
6,928,018
|
|
CRE construction
|
|
—
|
|
|
2,707
|
|
|
2,707
|
|
|
—
|
|
|
162,356
|
|
|
162,356
|
|
||||||
CRE
|
|
—
|
|
|
30,486
|
|
|
30,486
|
|
|
4,796
|
|
|
2,049,358
|
|
|
2,054,154
|
|
||||||
Tax-exempt
|
|
—
|
|
|
5,949
|
|
|
5,949
|
|
|
—
|
|
|
484,537
|
|
|
484,537
|
|
||||||
Residential mortgage
|
|
4,046
|
|
|
8,480
|
|
|
12,526
|
|
|
62,706
|
|
|
1,899,908
|
|
|
1,962,614
|
|
||||||
SBL
|
|
—
|
|
|
2,966
|
|
|
2,966
|
|
|
—
|
|
|
1,481,504
|
|
|
1,481,504
|
|
||||||
Total
|
|
$
|
5,178
|
|
|
$
|
167,079
|
|
|
$
|
172,257
|
|
|
$
|
78,101
|
|
|
$
|
12,995,082
|
|
|
$
|
13,073,183
|
|
(1)
|
Excludes any net unearned income and deferred expenses.
|
|
Aggregate
assets
(1)
|
|
Aggregate
liabilities
(1)
|
||||
|
(in thousands)
|
||||||
June 30, 2016
|
|
|
|
||||
LIHTC Funds
|
$
|
110,627
|
|
|
$
|
26,013
|
|
Guaranteed LIHTC Fund
(2)
|
64,124
|
|
|
2,512
|
|
||
Restricted Stock Trust Fund
|
11,359
|
|
|
11,359
|
|
||
EIF Funds
|
3,864
|
|
|
—
|
|
||
Total
|
$
|
189,974
|
|
|
$
|
39,884
|
|
|
|
|
|
||||
September 30, 2015
|
|
|
|
|
|
||
LIHTC Funds
|
$
|
143,111
|
|
|
$
|
41,125
|
|
Guaranteed LIHTC Fund
(2)
|
71,231
|
|
|
2,263
|
|
||
Restricted Stock Trust Fund
|
6,405
|
|
|
6,405
|
|
||
EIF Funds
|
4,627
|
|
|
—
|
|
||
Total
|
$
|
225,374
|
|
|
$
|
49,793
|
|
(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
one
investor member with a guaranteed return on their investment in the fund (the “Guaranteed LIHTC Fund”). See
Note 17
for additional information regarding this commitment.
|
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
(in thousands)
|
||||||
Assets:
|
|
|
|
||||
Assets segregated pursuant to regulations and other segregated assets
|
$
|
7,785
|
|
|
$
|
8,525
|
|
Receivables, other
|
5,494
|
|
|
5,542
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
160,824
|
|
|
199,678
|
|
||
Trust fund investment in RJF common stock
(1)
|
11,358
|
|
|
6,404
|
|
||
Prepaid expenses and other assets
|
3,764
|
|
|
4,297
|
|
||
Total assets
|
$
|
189,225
|
|
|
$
|
224,446
|
|
|
|
|
|
||||
Liabilities and equity:
|
|
|
|
|
|
||
Trade and other payables
|
$
|
6,632
|
|
|
$
|
12,424
|
|
Intercompany payables
|
11,328
|
|
|
6,400
|
|
||
Loans payable of consolidated variable interest entities
(2)
|
12,409
|
|
|
25,960
|
|
||
Total liabilities
|
30,369
|
|
|
44,784
|
|
||
RJF equity
|
6,092
|
|
|
6,121
|
|
||
Noncontrolling interests
|
152,764
|
|
|
173,541
|
|
||
Total equity
|
158,856
|
|
|
179,662
|
|
||
Total liabilities and equity
|
$
|
189,225
|
|
|
$
|
224,446
|
|
(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 June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Other
|
(447
|
)
|
|
(349
|
)
|
|
(33
|
)
|
|
(57
|
)
|
||||
Total revenues
|
(447
|
)
|
|
(349
|
)
|
|
(31
|
)
|
|
(55
|
)
|
||||
Interest expense
|
(178
|
)
|
|
(404
|
)
|
|
(803
|
)
|
|
(1,470
|
)
|
||||
Net revenues
|
(625
|
)
|
|
(753
|
)
|
|
(834
|
)
|
|
(1,525
|
)
|
||||
Non-interest expenses
(1)
|
14,014
|
|
|
10,318
|
|
|
32,433
|
|
|
29,417
|
|
||||
Net loss including noncontrolling interests
|
(14,639
|
)
|
|
(11,071
|
)
|
|
(33,267
|
)
|
|
(30,942
|
)
|
||||
Net loss attributable to noncontrolling interests
|
(14,619
|
)
|
|
(11,032
|
)
|
|
(33,238
|
)
|
|
(30,890
|
)
|
||||
Net loss attributable to RJF
|
$
|
(20
|
)
|
|
$
|
(39
|
)
|
|
$
|
(29
|
)
|
|
$
|
(52
|
)
|
(1)
|
Primarily comprised of items reported in other expense on our Condensed Consolidated Statements of Income and Comprehensive Income.
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||||||||||||
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
LIHTC Funds
|
$
|
3,831,647
|
|
|
$
|
1,283,102
|
|
|
$
|
97,110
|
|
|
$
|
3,317,594
|
|
|
$
|
951,465
|
|
|
$
|
42,244
|
|
NMTC Funds
|
65,251
|
|
|
59
|
|
|
12
|
|
|
65,388
|
|
|
40
|
|
|
12
|
|
||||||
Other Real Estate Limited Partnerships and LLCs
|
29,523
|
|
|
37,062
|
|
|
140
|
|
|
29,523
|
|
|
37,062
|
|
|
163
|
|
||||||
Total
|
$
|
3,926,421
|
|
|
$
|
1,320,223
|
|
|
$
|
97,262
|
|
|
$
|
3,412,505
|
|
|
$
|
988,567
|
|
|
$
|
42,419
|
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||||||||||||
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Managed Funds
|
$
|
101,856
|
|
|
$
|
4,539
|
|
|
$
|
5,154
|
|
|
$
|
83,132
|
|
|
$
|
22
|
|
|
$
|
53
|
|
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
(in thousands)
|
||||||
Goodwill
|
$
|
322,193
|
|
|
$
|
307,635
|
|
Identifiable intangible assets, net
|
62,700
|
|
|
69,327
|
|
||
Total goodwill and identifiable intangible assets, net
|
$
|
384,893
|
|
|
$
|
376,962
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||||
|
Segment
|
|
|
Segment
|
|
|
|||||||||||||||||
|
Private client group
|
|
Capital markets
|
|
Total
|
|
Private client group
|
|
Capital markets
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Fiscal year 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill as of beginning of period
|
$
|
189,355
|
|
|
$
|
123,650
|
|
|
$
|
313,005
|
|
|
$
|
186,733
|
|
|
$
|
120,902
|
|
|
$
|
307,635
|
|
Additions
|
—
|
|
|
9,012
|
|
(1)
|
9,012
|
|
|
—
|
|
|
9,012
|
|
(1)
|
9,012
|
|
||||||
Foreign currency translation
|
102
|
|
|
74
|
|
|
176
|
|
|
2,724
|
|
|
2,822
|
|
|
5,546
|
|
||||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Goodwill as of end of period
|
$
|
189,457
|
|
|
$
|
132,736
|
|
|
$
|
322,193
|
|
|
$
|
189,457
|
|
|
$
|
132,736
|
|
|
$
|
322,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fiscal year 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill as of beginning of period
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Goodwill as of end of period
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
|
|
|
|
|
|
Key assumptions
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
Weight assigned to the outcome of:
|
|||||||
Segment
|
|
Reporting unit
|
|
Goodwill as of the impairment testing date (in thousands)
|
|
Discount rate used in the income approach
|
|
Multiple applied to revenue/EPS in the market approach
|
|
Income approach
|
|
Market approach
|
|||||
Private client group:
|
|
RJ Ltd. Private Client Group
|
|
$
|
16,144
|
|
|
14
|
%
|
|
1.2x/12.4x
|
|
75
|
%
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital markets:
|
|
RJ Ltd. Capital Markets
|
|
16,893
|
|
|
15
|
%
|
|
1.1x/14.4x
|
|
75
|
%
|
|
25
|
%
|
|
Total
|
|
$
|
33,037
|
|
|
|
|
|
|
|
|
|
|
Segment
|
|
|
||||||||||||||||
|
Private client group
|
|
Capital markets
|
|
Asset management
|
|
RJ Bank
|
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
For the three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Net identifiable intangible assets as of beginning of period
|
$
|
17,415
|
|
|
$
|
29,892
|
|
|
$
|
15,199
|
|
|
$
|
1,453
|
|
|
$
|
63,959
|
|
Additions
|
—
|
|
|
1,013
|
|
(1)
|
—
|
|
|
132
|
|
|
1,145
|
|
|||||
Amortization expense
|
(384
|
)
|
|
(1,405
|
)
|
|
(541
|
)
|
|
(111
|
)
|
|
(2,441
|
)
|
|||||
Foreign currency translation
|
—
|
|
|
1
|
|
|
36
|
|
|
—
|
|
|
37
|
|
|||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net identifiable intangible assets as of end of period
|
$
|
17,031
|
|
|
$
|
29,501
|
|
|
$
|
14,694
|
|
|
$
|
1,474
|
|
|
$
|
62,700
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the nine months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Net identifiable intangible assets as of beginning of period
|
$
|
18,182
|
|
|
$
|
32,532
|
|
|
$
|
17,137
|
|
|
$
|
1,476
|
|
|
$
|
69,327
|
|
Additions
|
—
|
|
|
1,013
|
|
(1)
|
—
|
|
|
292
|
|
|
1,305
|
|
|||||
Amortization expense
|
(1,151
|
)
|
|
(4,045
|
)
|
|
(1,722
|
)
|
|
(294
|
)
|
|
(7,212
|
)
|
|||||
Foreign currency translation
|
—
|
|
|
1
|
|
|
(501
|
)
|
|
—
|
|
|
(500
|
)
|
|||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
(220
|
)
|
|
—
|
|
|
(220
|
)
|
|||||
Net identifiable intangible assets as of end of period
|
$
|
17,031
|
|
|
$
|
29,501
|
|
|
$
|
14,694
|
|
|
$
|
1,474
|
|
|
$
|
62,700
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the three months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Net identifiable intangible assets as of beginning of period
|
$
|
8,333
|
|
|
$
|
35,225
|
|
|
$
|
10,330
|
|
|
$
|
1,299
|
|
|
$
|
55,187
|
|
Additions
|
—
|
|
|
—
|
|
|
5,873
|
|
(2)
|
191
|
|
|
6,064
|
|
|||||
Amortization expense
|
(139
|
)
|
|
(1,374
|
)
|
|
(491
|
)
|
|
(86
|
)
|
|
(2,090
|
)
|
|||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net identifiable intangible assets as of end of period
|
$
|
8,194
|
|
|
$
|
33,851
|
|
|
$
|
15,712
|
|
|
$
|
1,404
|
|
|
$
|
59,161
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the nine months ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Net identifiable intangible assets as of beginning of period
|
$
|
8,611
|
|
|
$
|
37,975
|
|
|
$
|
10,996
|
|
|
$
|
1,193
|
|
|
$
|
58,775
|
|
Additions
|
—
|
|
|
—
|
|
|
5,873
|
|
(2)
|
424
|
|
|
6,297
|
|
|||||
Amortization expense
|
(417
|
)
|
|
(4,124
|
)
|
|
(1,157
|
)
|
|
(213
|
)
|
|
(5,911
|
)
|
|||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net identifiable intangible assets as of end of period
|
$
|
8,194
|
|
|
$
|
33,851
|
|
|
$
|
15,712
|
|
|
$
|
1,404
|
|
|
$
|
59,161
|
|
(1)
|
The additions are directly attributable to the acquisition of identifiable intangible assets, primarily a customer relationship intangible asset, arising from our acquisition of Mummert (see
Note 3
for additional information). The weighted-average useful life associated with the addition is
1 year
.
|
(2)
|
The additions are directly attributable to the acquisition of identifiable intangible assets, primarily a customer relationship intangible asset, arising from our acquisition of Cougar (see
Note 3
for additional information). The weighted-average useful life associated with the additions is
9.3 years
.
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||||
|
Gross carrying value
|
|
Accumulated amortization
|
|
Gross carrying value
|
|
Accumulated amortization
|
||||||||
|
(in thousands)
|
||||||||||||||
Customer relationships
|
$
|
74,728
|
|
|
$
|
(21,075
|
)
|
|
$
|
75,217
|
|
|
$
|
(17,759
|
)
|
Trade name
|
4,006
|
|
|
(343
|
)
|
|
4,278
|
|
|
(111
|
)
|
||||
Developed technology
|
12,630
|
|
|
(9,649
|
)
|
|
12,630
|
|
|
(7,754
|
)
|
||||
Intellectual property
|
524
|
|
|
(61
|
)
|
|
561
|
|
|
(23
|
)
|
||||
Non-compete agreements
|
989
|
|
|
(523
|
)
|
|
1,018
|
|
|
(206
|
)
|
||||
Mortgage servicing rights
|
2,359
|
|
|
(885
|
)
|
|
2,067
|
|
|
(591
|
)
|
||||
Total
|
$
|
95,236
|
|
|
$
|
(32,536
|
)
|
|
$
|
95,771
|
|
|
$
|
(26,444
|
)
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||
|
Balance
|
|
Weighted-average rate
(1)
|
|
Balance
|
|
Weighted-average rate
(1)
|
||||||
|
($ in thousands)
|
||||||||||||
Bank deposits:
|
|
|
|
|
|
|
|
||||||
NOW accounts
|
$
|
5,280
|
|
|
0.01
|
%
|
|
$
|
4,752
|
|
|
0.01
|
%
|
Demand deposits (non-interest-bearing)
|
9,199
|
|
|
—
|
|
|
9,295
|
|
|
—
|
|
||
Savings and money market accounts
|
13,383,179
|
|
|
0.05
|
%
|
|
11,550,917
|
|
|
0.02
|
%
|
||
Certificates of deposit
|
334,536
|
|
|
1.58
|
%
|
|
354,917
|
|
|
1.64
|
%
|
||
Total bank deposits
(2)
|
$
|
13,732,194
|
|
|
0.09
|
%
|
|
$
|
11,919,881
|
|
|
0.07
|
%
|
(1)
|
Weighted-average rate calculation is based on the actual deposit balances at
June 30, 2016
and
September 30, 2015
, respectively.
|
(2)
|
Bank deposits exclude affiliate deposits of approximately
$509 million
and
$458 million
at
June 30, 2016
and
September 30, 2015
, respectively. These affiliate deposits include
$502 million
and
$451 million
, held in a deposit account on behalf of RJF as of
June 30, 2016
and
September 30, 2015
, respectively.
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||||
|
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
|
$
|
10,574
|
|
|
$
|
8,036
|
|
|
$
|
6,206
|
|
|
$
|
7,610
|
|
Over three through six months
|
13,992
|
|
|
12,528
|
|
|
11,731
|
|
|
7,304
|
|
||||
Over six through twelve months
|
22,153
|
|
|
16,972
|
|
|
18,341
|
|
|
14,807
|
|
||||
Over one through two years
|
10,206
|
|
|
7,385
|
|
|
43,133
|
|
|
33,163
|
|
||||
Over two through three years
|
61,366
|
|
|
23,984
|
|
|
33,556
|
|
|
10,825
|
|
||||
Over three through four years
|
54,991
|
|
|
25,382
|
|
|
51,140
|
|
|
23,616
|
|
||||
Over four through five years
|
44,377
|
|
|
22,590
|
|
|
63,351
|
|
|
30,134
|
|
||||
Total
|
$
|
217,659
|
|
|
$
|
116,877
|
|
|
$
|
227,458
|
|
|
$
|
127,459
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Certificates of deposit
|
$
|
1,320
|
|
|
$
|
1,438
|
|
|
$
|
4,174
|
|
|
$
|
4,421
|
|
Money market, savings and NOW accounts
(1)
|
1,413
|
|
|
639
|
|
|
3,330
|
|
|
1,883
|
|
||||
Total interest expense on deposits
|
$
|
2,733
|
|
|
$
|
2,077
|
|
|
$
|
7,504
|
|
|
$
|
6,304
|
|
(1)
|
The balances for the
three and nine months ended June 30, 2016
, respectively, are presented net of interest expense associated with affiliate deposits.
|
|
June 30, 2016
|
|
September 30, 2015
|
|
||||
|
(in thousands)
|
|
||||||
Other borrowings:
|
|
|
|
|
||||
FHLB advances
|
$
|
575,000
|
|
(1)
|
$
|
550,000
|
|
(2)
|
Borrowings on secured lines of credit
(3)
|
137,800
|
|
|
115,000
|
|
|
||
Mortgage notes payable
(4)
|
34,495
|
|
|
37,716
|
|
|
||
Borrowings on ClariVest revolving credit facility
(5)
|
283
|
|
|
349
|
|
|
||
Borrowings on unsecured lines of credit
(6)
|
100,000
|
|
(7)
|
—
|
|
(7)
|
||
Total other borrowings
|
$
|
847,578
|
|
|
$
|
703,065
|
|
|
(1)
|
Borrowings from the FHLB as of
June 30, 2016
are comprised of
three
advances. One of the FHLB advances is in the amount of
$250 million
,
and one is in the amount of
$300 million
, each of these advances mature in
September 2017
and have interest rates which reset quarterly. We use interest rate swaps to manage the risk of increases in interest rates associated with these floating-rate advances by converting all of these balances subject to variable interest rates to a fixed interest rate. Refer to
Note 14
for information regarding these interest rate swaps which are accounted for as hedging instruments. The other FHLB advance, in the amount of
$25 million
, matures in
October 2020
and bears interest at a fixed rate of
3.4%
. All of the FHLB advances are secured by a blanket lien granted to the FHLB on RJ Bank’s residential mortgage loan portfolio. The weighted average interest rate on these advances as of
June 30, 2016
is
0.79%
.
|
(2)
|
Borrowings from the FHLB as of
September 30, 2015
are comprised of
two
floating-rate advances, one in the amount of
$250 million
and the other in the amount of
$300 million
. Both FHLB advances mature in
March 2017
and have an interest rate which resets quarterly. We use interest rate swaps to manage the risk of increases in interest rates associated with these floating-rate advances by converting a substantial portion of these balances subject to variable interest rates to a fixed interest rate. Refer to
Note 14
for information regarding these interest rate swaps which are accounted for as hedging instruments. Both of these advances were restructured during fiscal year 2016 in order to extend their maturity date.
|
(3)
|
Borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities.
|
(4)
|
Mortgage notes payable pertain to mortgage loans on our corporate headquarters offices located in St. Petersburg, Florida. These mortgage loans are secured by land, buildings, and improvements with a net book value of
$45.5 million
at
June 30, 2016
. These mortgage loans bear interest at
5.7%
with repayment terms of monthly interest and principal debt service and have a
January 2023
maturity.
|
(5)
|
ClariVest Asset Management, LLC (“ClariVest”), a subsidiary of Eagle, is a party to a revolving line of credit provided by a third party lender (the “ClariVest Facility”). The maximum amount available to borrow under the ClariVest Facility is
$500 thousand
, bearing interest at a variable rate which is
1%
over the lenders prime rate. The ClariVest Facility expires in
September 2018
.
|
(6)
|
In August 2015, RJF entered into a revolving credit facility agreement in which the lenders are a number of financial institutions (the “RJF Credit Facility”). This committed unsecured borrowing facility provides for maximum borrowings of up to
$300 million
, at variable rates of interest, with a facility maturity in August 2020. There are
no
borrowings outstanding on the RJF Credit Facility as of either
June 30, 2016
or
September 30, 2015
.
|
(7)
|
Borrowings on unsecured lines of credit, with the exception of the RJF Credit Facility, are day-to-day and are generally utilized for cash management purposes.
|
|
June 30,
2016 |
|
September 30
2015 |
||||
|
(in thousands)
|
||||||
8.60% senior notes, due 2019, net of unaccreted discount of $16 thousand and $20 thousand at June 30, 2016 and September 30, 2015, respectively
(1)
|
$
|
299,984
|
|
|
$
|
299,980
|
|
5.625% senior notes, due 2024, net of unaccreted discount of $642 thousand and $704 thousand at June 30, 2016 and September 30, 2015, respectively
(2)
|
249,358
|
|
|
249,296
|
|
||
6.90% senior notes, due 2042
(3)
|
350,000
|
|
|
350,000
|
|
||
4.25% senior notes, due 2016, net of unaccreted discount of $54 thousand at September 30, 2015
(4)
|
—
|
|
|
249,946
|
|
||
Total senior notes payable
|
$
|
899,342
|
|
|
$
|
1,149,222
|
|
(1)
|
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.
|
(2)
|
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.
|
(3)
|
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 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.
|
(4)
|
In
April 2011
, we sold in a registered underwritten public offering,
$250 million
in aggregate principal amount of
4.25%
senior notes. The notes matured and were repaid in
April 2016
.
|
|
Asset derivatives
|
||||||||||||||||||
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||||||||
|
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
(2)
|
Prepaid expenses and other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Prepaid expenses and other assets
|
|
$
|
752,600
|
|
(3)
|
$
|
613
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
(4)
|
Trading instruments
|
|
$
|
1,935,842
|
|
|
$
|
160,811
|
|
|
Trading instruments
|
|
$
|
2,473,946
|
|
|
$
|
130,095
|
|
Interest rate contracts
(4)
|
Trading instruments
|
|
$
|
117,364
|
|
(3)
|
$
|
10,140
|
|
|
Trading instruments
|
|
$
|
74,873
|
|
(3)
|
$
|
2,612
|
|
Interest rate contracts
(5)
|
Derivative instruments associated with offsetting matched book positions
|
|
$
|
1,471,975
|
|
|
$
|
430,766
|
|
|
Derivative instruments associated with offsetting matched book positions
|
|
$
|
1,649,863
|
|
|
$
|
389,457
|
|
Forward foreign exchange contracts
(2)
|
Prepaid expenses and other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Prepaid expenses and other assets
|
|
$
|
214,300
|
|
(3)
|
$
|
304
|
|
|
Liability derivatives
|
||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts
(6)
|
Trade and other payables
|
|
$
|
550,000
|
|
|
$
|
31,978
|
|
|
Trade and other payables
|
|
$
|
300,000
|
|
|
$
|
7,545
|
|
Forward foreign exchange contracts
(2)
|
Trade and other payables
|
|
$
|
927,500
|
|
(3)
|
$
|
8,882
|
|
|
Trade and other payables
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
(4)
|
Trading instruments sold
|
|
$
|
1,946,726
|
|
|
$
|
153,048
|
|
|
Trading instruments sold
|
|
$
|
1,906,766
|
|
|
$
|
104,255
|
|
Interest rate contracts
(4)
|
Trading instruments sold
|
|
$
|
128,757
|
|
(3)
|
$
|
6,001
|
|
|
Trading instruments sold
|
|
$
|
136,710
|
|
(3)
|
$
|
4,865
|
|
Interest rate contracts
(5)
|
Derivative instruments associated with offsetting matched book positions
|
|
$
|
1,471,975
|
|
|
$
|
430,766
|
|
|
Derivative instruments associated with offsetting matched book positions
|
|
$
|
1,649,863
|
|
|
$
|
389,457
|
|
Forward foreign exchange contracts
(2)
|
Trade and other payables
|
|
$
|
411,300
|
|
(3)
|
$
|
3,818
|
|
|
Trade and other payables
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
The fair value in this table is presented on a gross basis before netting of cash collateral and before any netting by counterparty according to our legally enforceable master netting arrangements. The fair value in the Condensed Consolidated Statements of Financial Condition is presented net. See
Note 15
for additional information regarding offsetting asset and liability balances.
|
(2)
|
These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure.
|
(3)
|
The notional amount presented is denominated in Canadian currency.
|
(4)
|
These contracts arise from our OTC Derivatives Operations.
|
(5)
|
These contracts arise from our Offsetting Matched Book Derivatives Operations.
|
(6)
|
These contracts are associated with our RJ Bank Interest Hedges activities.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Forward foreign exchange contracts
|
$
|
(2,339
|
)
|
|
$
|
(5,339
|
)
|
|
$
|
(13,513
|
)
|
|
$
|
38,238
|
|
RJ Bank Interest Hedges
|
(6,922
|
)
|
|
3,589
|
|
|
(15,126
|
)
|
|
2,088
|
|
||||
Total (losses) gains recognized in AOCI, net of taxes
|
$
|
(9,261
|
)
|
|
$
|
(1,750
|
)
|
|
$
|
(28,639
|
)
|
|
$
|
40,326
|
|
|
|
Location of gain (loss)
recognized on derivatives in the
Condensed Consolidated Statements of
Income and Comprehensive Income
|
|
Amount of gain (loss) on derivatives
recognized in income |
||||||||||||||
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
|
|
|
|
(in thousands)
|
||||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
(1)
|
|
Net trading profit
|
|
$
|
1,194
|
|
|
$
|
250
|
|
|
$
|
2,315
|
|
|
$
|
2,530
|
|
Interest rate contracts
(2)
|
|
Other revenues
|
|
$
|
23
|
|
|
$
|
143
|
|
|
$
|
69
|
|
|
$
|
209
|
|
Forward foreign exchange contracts
(3)
|
|
Other revenues
|
|
$
|
(142
|
)
|
|
$
|
(1,420
|
)
|
|
$
|
(7,554
|
)
|
|
$
|
10,885
|
|
(1)
|
These contracts arise from our OTC Derivatives Operations.
|
(2)
|
These contracts arise from our Offsetting Matched Book Derivatives Operations.
|
(3)
|
These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure.
|
|
|
|
|
|
|
|
|
Gross amounts not offset in the Statements of Financial Condition
|
|
|
||||||||||||||
|
|
Gross amounts of recognized assets (liabilities)
|
|
Gross amounts offset in the Statements of Financial Condition
|
|
Net amounts presented in the Statements of Financial Condition
|
|
Financial instruments
|
|
Cash (received) paid
|
|
Net amount
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
As of June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities purchased under agreements to resell and other collateralized financings
|
|
$
|
444,812
|
|
|
$
|
—
|
|
|
$
|
444,812
|
|
|
$
|
(444,812
|
)
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives - interest rate contracts
(2)
|
|
160,811
|
|
|
(112,162
|
)
|
|
48,649
|
|
|
(26,360
|
)
|
|
—
|
|
|
22,289
|
|
||||||
Derivative instruments associated with offsetting matched book positions
|
|
430,766
|
|
|
—
|
|
|
430,766
|
|
|
(430,766
|
)
|
(3)
|
—
|
|
|
—
|
|
||||||
Derivatives - interest rate contracts
(4)
|
|
10,140
|
|
|
—
|
|
|
10,140
|
|
|
—
|
|
|
—
|
|
|
10,140
|
|
||||||
Stock borrowed
|
|
87,924
|
|
|
—
|
|
|
87,924
|
|
|
(86,151
|
)
|
|
—
|
|
|
1,773
|
|
||||||
Total assets
|
|
$
|
1,134,453
|
|
|
$
|
(112,162
|
)
|
|
$
|
1,022,291
|
|
|
$
|
(988,089
|
)
|
|
$
|
—
|
|
|
$
|
34,202
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities sold under agreements to repurchase
|
|
$
|
(266,158
|
)
|
|
$
|
—
|
|
|
$
|
(266,158
|
)
|
|
$
|
266,158
|
|
(5)
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives - interest rate contracts
(2)
|
|
(153,048
|
)
|
|
147,751
|
|
|
(5,297
|
)
|
|
4,099
|
|
(6)
|
1,198
|
|
(6)
|
—
|
|
||||||
Derivatives - interest rate contracts
(4)
|
|
(6,001
|
)
|
|
—
|
|
|
(6,001
|
)
|
|
—
|
|
|
—
|
|
|
(6,001
|
)
|
||||||
Derivative instruments associated with offsetting matched book positions
|
|
(430,766
|
)
|
|
—
|
|
|
(430,766
|
)
|
|
430,766
|
|
(3)
|
—
|
|
|
—
|
|
||||||
Derivatives - forward foreign exchange contracts
(7)
|
|
(12,700
|
)
|
|
—
|
|
|
(12,700
|
)
|
|
—
|
|
|
—
|
|
|
(12,700
|
)
|
||||||
Derivatives - RJ Bank Interest Hedges
|
|
(31,978
|
)
|
|
—
|
|
|
(31,978
|
)
|
|
—
|
|
|
31,978
|
|
(8)
|
—
|
|
||||||
Stock loaned
|
|
(586,683
|
)
|
|
—
|
|
|
(586,683
|
)
|
|
586,683
|
|
(9)
|
—
|
|
|
—
|
|
||||||
Total liabilities
|
|
$
|
(1,487,334
|
)
|
|
$
|
147,751
|
|
|
$
|
(1,339,583
|
)
|
|
$
|
1,287,706
|
|
|
$
|
33,176
|
|
|
$
|
(18,701
|
)
|
As of September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities purchased under agreements to resell and other collateralized financings
|
|
$
|
474,144
|
|
|
$
|
—
|
|
|
$
|
474,144
|
|
|
$
|
(474,144
|
)
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives - interest rate contracts
(2)
|
|
130,095
|
|
|
(90,621
|
)
|
|
39,474
|
|
|
(12,609
|
)
|
|
—
|
|
|
26,865
|
|
||||||
Derivative instruments associated with offsetting matched book positions
|
|
389,457
|
|
|
—
|
|
|
389,457
|
|
|
(389,457
|
)
|
(3)
|
—
|
|
|
—
|
|
||||||
Derivatives - forward foreign exchange contracts
(7)
|
|
917
|
|
|
—
|
|
|
917
|
|
|
—
|
|
|
—
|
|
|
917
|
|
||||||
Derivatives - interest rate contracts
(4)
|
|
2,612
|
|
|
—
|
|
|
2,612
|
|
|
—
|
|
|
—
|
|
|
2,612
|
|
||||||
Stock borrowed
|
|
124,373
|
|
|
—
|
|
|
124,373
|
|
|
(120,957
|
)
|
|
—
|
|
|
3,416
|
|
||||||
Total assets
|
|
$
|
1,121,598
|
|
|
$
|
(90,621
|
)
|
|
$
|
1,030,977
|
|
|
$
|
(997,167
|
)
|
|
$
|
—
|
|
|
$
|
33,810
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities sold under agreements to repurchase
|
|
$
|
(332,536
|
)
|
|
$
|
—
|
|
|
$
|
(332,536
|
)
|
|
$
|
332,536
|
|
(5)
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives - interest rate contracts
(2)
|
|
(104,255
|
)
|
|
88,881
|
|
|
(15,374
|
)
|
|
3,528
|
|
(6)
|
7,399
|
|
(6)
|
(4,447
|
)
|
||||||
Derivative instruments associated with offsetting matched book positions
|
|
(389,457
|
)
|
|
—
|
|
|
(389,457
|
)
|
|
389,457
|
|
(3)
|
—
|
|
|
—
|
|
||||||
Derivatives - interest rate contracts
(4)
|
|
(4,865
|
)
|
|
—
|
|
|
(4,865
|
)
|
|
—
|
|
|
—
|
|
|
(4,865
|
)
|
||||||
Derivatives - RJ Bank Interest Hedges
|
|
(7,545
|
)
|
|
—
|
|
|
(7,545
|
)
|
|
—
|
|
|
7,545
|
|
(8)
|
—
|
|
||||||
Stock loaned
|
|
(478,573
|
)
|
|
—
|
|
|
(478,573
|
)
|
|
472,379
|
|
|
—
|
|
|
(6,194
|
)
|
||||||
Total liabilities
|
|
$
|
(1,317,231
|
)
|
|
$
|
88,881
|
|
|
$
|
(1,228,350
|
)
|
|
$
|
1,197,900
|
|
|
$
|
14,944
|
|
|
$
|
(15,506
|
)
|
(1)
|
We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities purchased under agreements to resell and other collateralized financings amounts to
$466.6 million
and
$499.3 million
as of
June 30, 2016
and
September 30, 2015
, respectively.
|
(2)
|
Derivatives - interest rate contracts are included in Trading instruments on our Condensed Consolidated Statements of Financial Condition. See
Note 14
for additional information.
|
(3)
|
Although these derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the nature of the agreement with the third party intermediary include terms that are similar to a master netting agreement, thus we present the offsetting amounts net in this table. See
Note 14
for further discussion of the “pass through” structure of the derivative instruments associated with Offsetting Matched Book Derivatives Operations.
|
(4)
|
Derivatives - interest rate contracts in which the notional amount is denominated in Canadian currency are included in Trading instruments on our Condensed Consolidated Statements of Financial Condition. See
Note 14
for additional information.
|
(5)
|
We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities sold under agreements to repurchase amounts to
$278.7 million
and
$346.1 million
as of
June 30, 2016
and
September 30, 2015
, respectively.
|
(6)
|
For the portion of these derivative contracts that are transacted through an exchange, the nature of the agreement with the clearing member exchange include terms that are similar to a master netting agreement, thus we are over-collateralized as of
June 30, 2016
and
September 30, 2015
since the actual amount of cash and securities deposited with the exchange for these derivative contracts is
$5.4 million
and
$17.6 million
, respectively. These deposits are a component of deposits with clearing organizations on our Condensed Consolidated Statements of Financial Condition. See
Note 14
for additional information.
|
(7)
|
These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. As of
June 30, 2016
, the fair value of the forward foreign exchange contract derivatives are in a liability position and are included in trade and other payables on our Condensed Consolidated Statements of Financial Condition. As of
September 30, 2015
the fair value of the forward foreign exchange contract derivatives are in an asset position and are included in prepaid expenses and other assets on our Condensed Consolidated Statements of Financial Condition. See
Note 14
for additional information.
|
(8)
|
Derivatives - RJ Bank Interest Hedges are included in trade and other payables on our Condensed Consolidated Statements of Financial Condition. See
Note 14
for additional information. The RJ Bank Interest Hedges are transacted through an exchange. The nature of the agreement with the clearing member exchange includes terms that are similar to a master netting agreement. We are over-collateralized as of
June 30, 2016
since the actual amount of cash and securities deposited with the exchange for these derivative contracts is
$47.9 million
. These deposits are included in deposits with clearing organizations on our Condensed Consolidated Statements of Financial Condition.
|
(9)
|
We are over-collateralized since the actual amount of financial instruments pledged as collateral for stock loaned amounts to
$589 million
as of
June 30, 2016
.
|
|
June 30, 2016
|
|
September 30, 2015
|
|
||||
|
(in thousands)
|
|
||||||
Collateral we received that is available to be delivered or repledged
|
$
|
2,068,996
|
|
|
$
|
2,308,277
|
|
|
Collateral that we delivered or repledged
|
$
|
1,350,917
|
|
(1)
|
$
|
1,122,540
|
|
(2)
|
(1)
|
The collateral delivered or repledged as of
June 30, 2016
, includes client margin securities which we pledged with a clearing organization in the amount of
$315.6 million
which were applied against our requirement of
$177.2 million
.
|
(2)
|
The collateral delivered or repledged as of
September 30, 2015
, includes client margin securities which we pledged with a clearing organization in the amount of
$240.7 million
which were applied against our requirement of
$147.6 million
.
|
|
June 30, 2016
|
|
September 30, 2015
|
|
||||
|
(in thousands)
|
|
||||||
Financial instruments owned, at fair value, pledged to counterparties that:
|
|
|
|
|
||||
Had the right to deliver or repledge
|
$
|
369,055
|
|
|
$
|
424,668
|
|
|
Did not have the right to deliver or repledge
|
$
|
109,224
|
|
(1)
|
$
|
94,006
|
|
(2)
|
(1)
|
Assets delivered or repledged as of
June 30, 2016
, includes securities which we pledged with a clearing organization in the amount of
$18.8 million
which were applied against our requirement of
$177.2 million
(client margin securities we pledged which are described in the preceding table constitute the remainder of the assets pledged to meet the requirement).
|
(2)
|
Assets delivered or repledged as of
September 30, 2015
, includes securities which we pledged with a clearing organization in the amount of
$30.5 million
which were applied against our requirement of
$147.6 million
(client margin securities we pledged which are described in the preceding table constitute the remainder of the assets pledged to meet the requirement).
|
|
|
Overnight and continuous
|
|
Up to 30 days
|
|
30-90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
As of June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agency obligations
|
|
$
|
94,882
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
94,882
|
|
Agency MBS and CMOs
|
|
163,275
|
|
|
8,001
|
|
|
—
|
|
|
—
|
|
|
171,276
|
|
|||||
Total Repurchase Agreements
|
|
258,157
|
|
|
8,001
|
|
|
—
|
|
|
—
|
|
|
266,158
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities lending
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
586,683
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
586,683
|
|
|||||
Total
|
|
$
|
844,840
|
|
|
$
|
8,001
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
852,841
|
|
Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote
|
|
$
|
852,841
|
|
||||||||||||||||
Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote
|
|
$
|
—
|
|
||||||||||||||||
|
|
|
||||||||||||||||||
As of September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agency obligations
|
|
$
|
211,594
|
|
|
$
|
5,250
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
216,844
|
|
Agency MBS and CMOs
|
|
112,941
|
|
|
2,751
|
|
|
—
|
|
|
—
|
|
|
115,692
|
|
|||||
Total Repurchase Agreements
|
|
324,535
|
|
|
8,001
|
|
|
—
|
|
|
—
|
|
|
332,536
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities lending
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
478,573
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
478,573
|
|
|||||
Total
|
|
$
|
803,108
|
|
|
$
|
8,001
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
811,109
|
|
Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote
|
|
$
|
811,109
|
|
||||||||||||||||
Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote
|
|
$
|
—
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Unrealized loss on available for sale securities (net of tax)
|
$
|
(955
|
)
|
|
$
|
(5,381
|
)
|
|
$
|
(6,647
|
)
|
|
$
|
(3,068
|
)
|
Unrealized gain (loss) on currency translations, net of the impact of net investment hedges (net of tax)
|
2,302
|
|
|
1,295
|
|
|
6,401
|
|
|
(20,424
|
)
|
||||
Unrealized (loss) gain on cash flow hedges (net of tax)
|
(6,922
|
)
|
|
3,589
|
|
|
(15,126
|
)
|
|
2,088
|
|
||||
Net other comprehensive loss
|
$
|
(5,575
|
)
|
|
$
|
(497
|
)
|
|
$
|
(15,372
|
)
|
|
$
|
(21,404
|
)
|
|
Available for sale securities
|
|
Net investment hedges
(1)
|
|
Currency translations
|
|
Sub-total: currency translations and net investment hedges
|
|
Cash flow hedges
(2)
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Three months ended June 30, 2016
|
|
||||||||||||||||||||||
Accumulated other comprehensive (loss) income as of the beginning of the period
|
$
|
(4,272
|
)
|
|
$
|
82,029
|
|
|
$
|
(115,203
|
)
|
|
$
|
(33,174
|
)
|
|
$
|
(12,854
|
)
|
|
$
|
(50,300
|
)
|
Other comprehensive (loss) income before reclassifications and taxes
|
(1,496
|
)
|
|
(3,738
|
)
|
|
4,798
|
|
|
1,060
|
|
|
(12,813
|
)
|
|
(13,249
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,649
|
|
|
1,649
|
|
||||||
Pre-tax net other comprehensive (loss) income
|
(1,496
|
)
|
|
(3,738
|
)
|
|
4,798
|
|
|
1,060
|
|
|
(11,164
|
)
|
|
(11,600
|
)
|
||||||
Income tax effect
|
541
|
|
|
1,399
|
|
|
(157
|
)
|
|
1,242
|
|
|
4,242
|
|
|
6,025
|
|
||||||
Net other comprehensive (loss) income for the period, net of tax
|
(955
|
)
|
|
(2,339
|
)
|
|
4,641
|
|
|
2,302
|
|
|
(6,922
|
)
|
|
(5,575
|
)
|
||||||
Accumulated other comprehensive (loss) income as of June 30, 2016
|
$
|
(5,227
|
)
|
|
$
|
79,690
|
|
|
$
|
(110,562
|
)
|
|
$
|
(30,872
|
)
|
|
$
|
(19,776
|
)
|
|
$
|
(55,875
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine months ended June 30, 2016
|
|
||||||||||||||||||||||
Accumulated other comprehensive income (loss) as of the beginning of the period
|
$
|
1,420
|
|
|
$
|
93,203
|
|
|
$
|
(130,476
|
)
|
|
$
|
(37,273
|
)
|
|
$
|
(4,650
|
)
|
|
$
|
(40,503
|
)
|
Other comprehensive (loss) income before reclassifications and taxes
|
(10,608
|
)
|
|
(21,598
|
)
|
|
20,952
|
|
|
(646
|
)
|
|
(28,984
|
)
|
|
(40,238
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,588
|
|
|
4,641
|
|
||||||
Pre-tax net other comprehensive (loss) income
|
(10,555
|
)
|
|
(21,598
|
)
|
|
20,952
|
|
|
(646
|
)
|
|
(24,396
|
)
|
|
(35,597
|
)
|
||||||
Income tax effect
|
3,908
|
|
|
8,085
|
|
|
(1,038
|
)
|
|
7,047
|
|
|
9,270
|
|
|
20,225
|
|
||||||
Net other comprehensive (loss) income for the period, net of tax
|
(6,647
|
)
|
|
(13,513
|
)
|
|
19,914
|
|
|
6,401
|
|
|
(15,126
|
)
|
|
(15,372
|
)
|
||||||
Accumulated other comprehensive (loss) income as of June 30, 2016
|
$
|
(5,227
|
)
|
|
$
|
79,690
|
|
|
$
|
(110,562
|
)
|
|
$
|
(30,872
|
)
|
|
$
|
(19,776
|
)
|
|
$
|
(55,875
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three months ended June 30, 2015
|
|
||||||||||||||||||||||
Accumulated other comprehensive income (loss) as of the beginning of the period
|
$
|
7,058
|
|
|
$
|
76,449
|
|
|
$
|
(104,801
|
)
|
|
$
|
(28,352
|
)
|
|
$
|
(1,501
|
)
|
|
$
|
(22,795
|
)
|
Other comprehensive (loss) income before reclassifications and taxes
|
(325
|
)
|
|
(8,540
|
)
|
|
7,029
|
|
|
(1,511
|
)
|
|
4,875
|
|
|
3,039
|
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax
|
(8,432
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
914
|
|
|
(7,518
|
)
|
||||||
Pre-tax net other comprehensive (loss) income
|
(8,757
|
)
|
|
(8,540
|
)
|
|
7,029
|
|
|
(1,511
|
)
|
|
5,789
|
|
|
(4,479
|
)
|
||||||
Income tax effect
|
3,376
|
|
|
3,201
|
|
|
(395
|
)
|
|
2,806
|
|
|
(2,200
|
)
|
|
3,982
|
|
||||||
Net other comprehensive (loss) income for the period, net of tax
|
(5,381
|
)
|
|
(5,339
|
)
|
|
6,634
|
|
|
1,295
|
|
|
3,589
|
|
|
(497
|
)
|
||||||
Accumulated other comprehensive income (loss) as of June 30, 2015
|
$
|
1,677
|
|
|
$
|
71,110
|
|
|
$
|
(98,167
|
)
|
|
$
|
(27,057
|
)
|
|
$
|
2,088
|
|
|
$
|
(23,292
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine months ended June 30, 2015
|
|
||||||||||||||||||||||
Accumulated other comprehensive income (loss) as of the beginning of the period
|
$
|
4,745
|
|
|
$
|
32,872
|
|
|
$
|
(39,505
|
)
|
|
$
|
(6,633
|
)
|
|
$
|
—
|
|
|
$
|
(1,888
|
)
|
Other comprehensive income (loss) before reclassifications and taxes
|
3,420
|
|
|
61,161
|
|
|
(61,939
|
)
|
|
(778
|
)
|
|
2,394
|
|
|
5,036
|
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax
|
(8,434
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
974
|
|
|
(7,460
|
)
|
||||||
Pre-tax net other comprehensive (loss) income
|
(5,014
|
)
|
|
61,161
|
|
|
(61,939
|
)
|
|
(778
|
)
|
|
3,368
|
|
|
(2,424
|
)
|
||||||
Income tax effect
|
1,946
|
|
|
(22,923
|
)
|
|
3,277
|
|
|
(19,646
|
)
|
|
(1,280
|
)
|
|
(18,980
|
)
|
||||||
Net other comprehensive (loss) income for the period, net of tax
|
(3,068
|
)
|
|
38,238
|
|
|
(58,662
|
)
|
|
(20,424
|
)
|
|
2,088
|
|
|
(21,404
|
)
|
||||||
Accumulated other comprehensive income (loss) as of June 30, 2015
|
$
|
1,677
|
|
|
$
|
71,110
|
|
|
$
|
(98,167
|
)
|
|
$
|
(27,057
|
)
|
|
$
|
2,088
|
|
|
$
|
(23,292
|
)
|
(1)
|
Comprised of net gains recognized on forward foreign exchange derivatives associated with hedges of RJ Bank’s foreign currency exposure due to its non-U.S. dollar net investments (see
Note 14
for additional information on these derivatives).
|
(2)
|
Represents RJ Bank Interest Hedges (see
Note 14
for additional information on these derivatives).
|
Accumulated other comprehensive income (loss) components:
|
|
Increase (decrease) in amounts reclassified from accumulated other comprehensive income (loss)
|
|
Affected line items in income statement
|
||
|
|
(in thousands)
|
|
|
||
Three months ended June 30, 2016
|
|
|
|
|
||
RJ Bank Interest Hedges
(1)
|
|
$
|
1,649
|
|
|
Interest expense
|
Income tax effect
|
|
(627
|
)
|
|
Provision for income taxes
|
|
Total reclassifications for the period
|
|
$
|
1,022
|
|
|
Net of tax
|
|
|
|
|
|
||
Nine months ended June 30, 2016
|
|
|
|
|
||
Available for sale securities:
(2)
|
|
|
|
|
||
Auction rate securities
(3)
|
|
$
|
53
|
|
|
Other revenue
|
RJ Bank Interest Hedges
(1)
|
|
4,588
|
|
|
Interest expense
|
|
|
|
4,641
|
|
|
Total before tax
|
|
Income tax effect
|
|
(1,763
|
)
|
|
Provision for income taxes
|
|
Total reclassifications for the period
|
|
$
|
2,878
|
|
|
Net of tax
|
|
|
|
|
|
||
Three months ended June 30, 2015
|
||||||
Available for sale securities:
(2)
|
|
|
|
|
||
Auction rate securities
(3)
|
|
$
|
(8,974
|
)
|
|
Other revenue
|
RJ Bank available for sale securities
|
|
542
|
|
|
Other revenue
|
|
RJ Bank Interest Hedges
(1)
|
|
914
|
|
|
Interest expense
|
|
|
|
(7,518
|
)
|
|
Total before tax
|
|
Income tax effect
|
|
2,903
|
|
|
Provision for income taxes
|
|
Total reclassifications for the period
|
|
$
|
(4,615
|
)
|
|
Net of tax
|
|
|
|
|
|
||
Nine months ended June 30, 2015
|
|
|
|
|
||
Available for sale securities:
(2)
|
|
|
|
|
||
Auction rate securities
(3)
|
|
$
|
(8,976
|
)
|
|
Other revenue
|
RJ Bank available for sale securities
|
|
542
|
|
|
Other revenue
|
|
RJ Bank Interest Hedges
(1)
|
|
974
|
|
|
Interest expense
|
|
|
|
(7,460
|
)
|
|
Total before tax
|
|
Income tax effect
|
|
2,881
|
|
|
Provision for income taxes
|
|
Total reclassifications for the period
|
|
$
|
(4,579
|
)
|
|
Net of tax
|
(1)
|
See
Note 14
for additional information regarding the RJ Bank Interest Hedges, and
Note 5
for additional fair value information regarding these derivatives.
|
(2)
|
See
Note 7
for additional information regarding the available for sale securities, and
Note 5
for additional fair value information regarding these securities.
|
(3)
|
Other revenues in our Condensed Consolidated Statements of Income and Comprehensive Income include realized gains on the sale of ARS (see
Note 7
for further information). The amounts presented in the table represent the reversal out of AOCI associated with such ARS’ sold. The net of such realized gain and this reversal out of AOCI represents the net effect of such redemptions and sales activities on other comprehensive income (“OCI”) for each respective period, on a pre-tax basis.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Margin balances
|
$
|
16,809
|
|
|
$
|
16,755
|
|
|
$
|
51,311
|
|
|
$
|
50,268
|
|
Assets segregated pursuant to regulations and other segregated assets
|
4,915
|
|
|
3,350
|
|
|
15,573
|
|
|
10,139
|
|
||||
Bank loans, net of unearned income
|
126,354
|
|
|
103,017
|
|
|
357,325
|
|
|
299,829
|
|
||||
Available for sale securities
|
1,880
|
|
|
1,234
|
|
|
5,452
|
|
|
3,830
|
|
||||
Trading instruments
|
4,913
|
|
|
4,636
|
|
|
14,339
|
|
|
14,061
|
|
||||
Stock loan
|
2,296
|
|
|
2,910
|
|
|
6,423
|
|
|
10,120
|
|
||||
Loans to financial advisors
|
2,091
|
|
|
1,774
|
|
|
6,001
|
|
|
5,211
|
|
||||
Corporate cash and all other
|
4,552
|
|
|
3,471
|
|
|
11,424
|
|
|
10,211
|
|
||||
Total interest income
|
$
|
163,810
|
|
|
$
|
137,147
|
|
|
$
|
467,848
|
|
|
$
|
403,669
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||
Brokerage client liabilities
|
$
|
619
|
|
|
$
|
213
|
|
|
$
|
1,481
|
|
|
$
|
737
|
|
Retail bank deposits
(1)
|
2,733
|
|
|
2,077
|
|
|
7,504
|
|
|
6,304
|
|
||||
Trading instruments sold but not yet purchased
|
1,277
|
|
|
1,158
|
|
|
3,839
|
|
|
3,376
|
|
||||
Stock borrow
|
789
|
|
|
1,082
|
|
|
2,185
|
|
|
4,495
|
|
||||
Borrowed funds
|
3,324
|
|
|
1,983
|
|
|
9,417
|
|
|
4,171
|
|
||||
Senior notes
|
16,771
|
|
|
19,010
|
|
|
54,953
|
|
|
57,029
|
|
||||
Interest expense of consolidated VIEs
|
178
|
|
|
404
|
|
|
803
|
|
|
1,470
|
|
||||
Other
|
2,520
|
|
|
1,797
|
|
|
4,462
|
|
|
4,372
|
|
||||
Total interest expense
|
28,211
|
|
|
27,724
|
|
|
84,644
|
|
|
81,954
|
|
||||
Net interest income
|
135,599
|
|
|
109,423
|
|
|
383,204
|
|
|
321,715
|
|
||||
Add (subtract): (provision) benefit for loan losses
|
(3,452
|
)
|
|
3,009
|
|
|
(26,991
|
)
|
|
(10,293
|
)
|
||||
Net interest income after benefit (provision) for loan losses
|
$
|
132,147
|
|
|
$
|
112,432
|
|
|
$
|
356,213
|
|
|
$
|
311,422
|
|
(1)
|
The balances for the
three and nine months ended June 30, 2016
, respectively, are presented net of interest expense associated with affiliate deposits.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Total share-based expense
|
$
|
2,829
|
|
|
$
|
3,298
|
|
|
$
|
7,901
|
|
|
$
|
8,986
|
|
Income tax benefit related to share-based expense
|
261
|
|
|
507
|
|
|
696
|
|
|
1,133
|
|
|
Unrecognized
pre-tax expense
|
|
Remaining
weighted-
average amortization period
|
||
|
(in thousands)
|
|
(in years)
|
||
Employees
|
$
|
21,615
|
|
|
3.00
|
Independent contractor financial advisors
|
906
|
|
|
3.11
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Total share-based expense
|
$
|
14,621
|
|
|
$
|
12,691
|
|
|
$
|
49,441
|
|
|
$
|
45,846
|
|
Income tax benefit related to share-based expense
|
5,065
|
|
|
4,434
|
|
|
17,440
|
|
|
16,334
|
|
|
Unrecognized
pre-tax expense
|
|
Remaining
weighted-
average amortization period
|
||
|
(in thousands)
|
|
(in years)
|
||
Employees and members of our Board of Directors
|
$
|
106,883
|
|
|
2.89
|
Independent contractor financial advisors
|
9
|
|
|
0.37
|
|
||||||||||||||||||||
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized under regulatory provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
RJF as of June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common equity Tier 1 capital
|
$
|
4,344,225
|
|
|
21.3
|
%
|
|
$
|
919,091
|
|
|
4.5
|
%
|
|
$
|
1,327,576
|
|
|
6.5
|
%
|
Tier 1 capital
|
$
|
4,344,225
|
|
|
21.3
|
%
|
|
$
|
1,225,455
|
|
|
6.0
|
%
|
|
$
|
1,633,940
|
|
|
8.0
|
%
|
Total capital
|
$
|
4,555,552
|
|
|
22.3
|
%
|
|
$
|
1,633,940
|
|
|
8.0
|
%
|
|
$
|
2,042,425
|
|
|
10.0
|
%
|
Tier 1 leverage
|
$
|
4,344,225
|
|
|
15.6
|
%
|
|
$
|
1,111,595
|
|
|
4.0
|
%
|
|
$
|
1,389,494
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
RJF as of September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common equity Tier 1 capital
|
$
|
4,101,353
|
|
|
22.1
|
%
|
|
$
|
834,677
|
|
|
4.5
|
%
|
|
$
|
1,205,644
|
|
|
6.5
|
%
|
Tier 1 capital
|
$
|
4,101,353
|
|
|
22.1
|
%
|
|
$
|
1,112,902
|
|
|
6.0
|
%
|
|
$
|
1,483,869
|
|
|
8.0
|
%
|
Total capital
|
$
|
4,290,431
|
|
|
23.1
|
%
|
|
$
|
1,483,869
|
|
|
8.0
|
%
|
|
$
|
1,854,837
|
|
|
10.0
|
%
|
Tier 1 leverage
|
$
|
4,101,353
|
|
|
16.1
|
%
|
|
$
|
1,018,859
|
|
|
4.0
|
%
|
|
$
|
1,273,574
|
|
|
5.0
|
%
|
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized under regulatory provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
RJ Bank as of June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common equity Tier 1 capital
|
$
|
1,635,931
|
|
|
12.7
|
%
|
|
$
|
579,515
|
|
|
4.5
|
%
|
|
$
|
837,077
|
|
|
6.5
|
%
|
Tier 1 capital
|
$
|
1,635,931
|
|
|
12.7
|
%
|
|
$
|
772,687
|
|
|
6.0
|
%
|
|
$
|
1,030,249
|
|
|
8.0
|
%
|
Total capital
|
$
|
1,797,460
|
|
|
14.0
|
%
|
|
$
|
1,030,249
|
|
|
8.0
|
%
|
|
$
|
1,287,811
|
|
|
10.0
|
%
|
Tier 1 leverage
|
$
|
1,635,931
|
|
|
10.1
|
%
|
|
$
|
648,412
|
|
|
4.0
|
%
|
|
$
|
810,516
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
RJ Bank as of September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital
|
$
|
1,525,942
|
|
|
13.0
|
%
|
|
$
|
526,577
|
|
|
4.5
|
%
|
|
$
|
760,611
|
|
|
6.5
|
%
|
Tier 1 capital
|
$
|
1,525,942
|
|
|
13.0
|
%
|
|
$
|
702,103
|
|
|
6.0
|
%
|
|
$
|
936,137
|
|
|
8.0
|
%
|
Total capital
|
$
|
1,672,577
|
|
|
14.3
|
%
|
|
$
|
936,137
|
|
|
8.0
|
%
|
|
$
|
1,170,171
|
|
|
10.0
|
%
|
Tier 1 leverage
|
$
|
1,525,942
|
|
|
10.9
|
%
|
|
$
|
558,829
|
|
|
4.0
|
%
|
|
$
|
698,536
|
|
|
5.0
|
%
|
|
As of
|
||||||
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
($ in thousands)
|
||||||
Raymond James & Associates, Inc.:
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
||||
Net capital as a percent of aggregate debit items
|
19.36
|
%
|
|
20.85
|
%
|
||
Net capital
|
$
|
346,669
|
|
|
$
|
411,222
|
|
Less: required net capital
|
(35,807
|
)
|
|
(39,452
|
)
|
||
Excess net capital
|
$
|
310,862
|
|
|
$
|
371,770
|
|
|
As of
|
||||||
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
(in thousands)
|
||||||
Raymond James Financial Services, Inc.:
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
||||
Net capital
|
$
|
22,997
|
|
|
$
|
25,828
|
|
Less: required net capital
|
(250
|
)
|
|
(250
|
)
|
||
Excess net capital
|
$
|
22,747
|
|
|
$
|
25,578
|
|
|
As of
|
||||||
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
(in thousands)
|
||||||
Raymond James Ltd.:
|
|
|
|
||||
Risk adjusted capital before minimum
|
$
|
120,436
|
|
|
$
|
127,097
|
|
Less: required minimum capital
|
(250
|
)
|
|
(250
|
)
|
||
Risk adjusted capital
|
$
|
120,186
|
|
|
$
|
126,847
|
|
|
June 30, 2016
|
||
|
(in thousands)
|
||
Standby letters of credit
|
$
|
34,148
|
|
Open-end consumer lines of credit (primarily SBL)
|
3,306,159
|
|
|
Commercial lines of credit
|
1,437,588
|
|
|
Unfunded loan commitments
|
414,407
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||
Income for basic earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to RJF
|
$
|
125,504
|
|
|
$
|
133,195
|
|
|
$
|
357,680
|
|
|
$
|
372,954
|
|
Less allocation of earnings and dividends to participating securities
(1)
|
(302
|
)
|
|
(410
|
)
|
|
(851
|
)
|
|
(1,235
|
)
|
||||
Net income attributable to RJF common shareholders
|
$
|
125,202
|
|
|
$
|
132,785
|
|
|
$
|
356,829
|
|
|
$
|
371,719
|
|
|
|
|
|
|
|
|
|
||||||||
Income for diluted earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to RJF
|
$
|
125,504
|
|
|
$
|
133,195
|
|
|
$
|
357,680
|
|
|
$
|
372,954
|
|
Less allocation of earnings and dividends to participating securities
(1)
|
(298
|
)
|
|
(403
|
)
|
|
(839
|
)
|
|
(1,211
|
)
|
||||
Net income attributable to RJF common shareholders
|
$
|
125,206
|
|
|
$
|
132,792
|
|
|
$
|
356,841
|
|
|
$
|
371,743
|
|
|
|
|
|
|
|
|
|
||||||||
Common shares:
|
|
|
|
|
|
|
|
|
|
||||||
Average common shares in basic computation
|
141,165
|
|
|
143,252
|
|
|
141,902
|
|
|
142,303
|
|
||||
Dilutive effect of outstanding stock options and certain restricted stock units
|
2,787
|
|
|
3,241
|
|
|
2,716
|
|
|
3,567
|
|
||||
Average common shares used in diluted computation
|
143,952
|
|
|
146,493
|
|
|
144,618
|
|
|
145,870
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.89
|
|
|
$
|
0.93
|
|
|
$
|
2.51
|
|
|
$
|
2.61
|
|
Diluted
|
$
|
0.87
|
|
|
$
|
0.91
|
|
|
$
|
2.47
|
|
|
$
|
2.55
|
|
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive
|
2,283
|
|
|
1,900
|
|
|
3,309
|
|
|
2,945
|
|
(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
349 thousand
and
449 thousand
for the three months ended
June 30, 2016
and
2015
, respectively. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of
349 thousand
and
478 thousand
for the
nine months ended June 30, 2016
and
2015
, respectively. Dividends paid to participating securities amounted to
$100 thousand
in each of the three months ended
June 30, 2016
and
2015
. Dividends paid to participating securities amounted to
$200 thousand
in each of the
nine months ended June 30, 2016
and
2015
. 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 June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Dividends per common share - declared
|
$
|
0.20
|
|
|
$
|
0.18
|
|
|
$
|
0.60
|
|
|
$
|
0.54
|
|
Dividends per common share - paid
|
$
|
0.20
|
|
|
$
|
0.18
|
|
|
$
|
0.58
|
|
|
$
|
0.52
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Private Client Group
|
$
|
903,223
|
|
|
$
|
894,727
|
|
|
$
|
2,660,687
|
|
|
$
|
2,617,604
|
|
Capital Markets
|
256,734
|
|
|
237,680
|
|
|
727,508
|
|
|
711,775
|
|
||||
Asset Management
|
100,954
|
|
|
98,899
|
|
|
298,034
|
|
|
292,551
|
|
||||
RJ Bank
|
132,747
|
|
|
107,244
|
|
|
376,785
|
|
|
315,590
|
|
||||
Other
|
17,170
|
|
|
28,890
|
|
|
31,442
|
|
|
56,462
|
|
||||
Intersegment eliminations
|
(24,135
|
)
|
|
(18,727
|
)
|
|
(65,319
|
)
|
|
(52,801
|
)
|
||||
Total revenues
(1)
|
$
|
1,386,693
|
|
|
$
|
1,348,713
|
|
|
$
|
4,029,137
|
|
|
$
|
3,941,181
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) excluding noncontrolling interests and before provision for income taxes:
|
|||||||||||||||
Private Client Group
|
$
|
81,911
|
|
|
$
|
86,363
|
|
|
$
|
234,283
|
|
|
$
|
254,527
|
|
Capital Markets
|
32,769
|
|
|
18,287
|
|
|
86,024
|
|
|
66,788
|
|
||||
Asset Management
|
32,507
|
|
|
31,554
|
|
|
96,996
|
|
|
102,445
|
|
||||
RJ Bank
|
88,930
|
|
|
78,008
|
|
|
239,929
|
|
|
213,628
|
|
||||
Other
|
(38,352
|
)
|
|
(6,082
|
)
|
|
(93,011
|
)
|
|
(46,030
|
)
|
||||
Pre-tax income excluding noncontrolling interests
|
197,765
|
|
|
208,130
|
|
|
564,221
|
|
|
591,358
|
|
||||
Add: net loss attributable to noncontrolling interests
|
(6,315
|
)
|
|
(6,835
|
)
|
|
(20,392
|
)
|
|
(15,781
|
)
|
||||
Income including noncontrolling interests and before provision for income taxes
|
$
|
191,450
|
|
|
$
|
201,295
|
|
|
$
|
543,829
|
|
|
$
|
575,577
|
|
(1)
|
No
individual client accounted for more than
ten
percent of total revenues in any of the periods presented.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Net interest income (expense):
|
|
|
|
|
|
|
|
||||||||
Private Client Group
|
$
|
24,063
|
|
|
$
|
22,664
|
|
|
$
|
71,561
|
|
|
$
|
66,423
|
|
Capital Markets
|
1,039
|
|
|
1,047
|
|
|
6,015
|
|
|
5,174
|
|
||||
Asset Management
|
47
|
|
|
(1
|
)
|
|
135
|
|
|
90
|
|
||||
RJ Bank
|
123,687
|
|
|
102,054
|
|
|
351,172
|
|
|
298,633
|
|
||||
Other
|
(13,237
|
)
|
|
(16,341
|
)
|
|
(45,679
|
)
|
|
(48,605
|
)
|
||||
Net interest income
|
$
|
135,599
|
|
|
$
|
109,423
|
|
|
$
|
383,204
|
|
|
$
|
321,715
|
|
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
(in thousands)
|
||||||
Total assets:
|
|
|
|
||||
Private Client Group
(1)
|
$
|
7,924,942
|
|
|
$
|
6,870,379
|
|
Capital Markets
(2)
|
3,154,266
|
|
|
2,780,733
|
|
||
Asset Management
|
126,134
|
|
|
187,378
|
|
||
RJ Bank
|
16,057,835
|
|
|
14,191,566
|
|
||
Other
|
1,580,254
|
|
|
2,449,628
|
|
||
Total
|
$
|
28,843,431
|
|
|
$
|
26,479,684
|
|
(1)
|
Includes
$189 million
and
$187 million
of goodwill at
June 30, 2016
and
September 30, 2015
, respectively.
|
(2)
|
Includes
$133 million
and
$121 million
of goodwill at
June 30, 2016
and
September 30, 2015
, respectively.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
1,289,275
|
|
|
$
|
1,247,645
|
|
|
$
|
3,738,804
|
|
|
$
|
3,643,350
|
|
Canada
|
72,969
|
|
|
71,928
|
|
|
197,284
|
|
|
209,221
|
|
||||
Europe
|
18,780
|
|
|
20,242
|
|
|
63,695
|
|
|
65,367
|
|
||||
Other
|
5,669
|
|
|
8,898
|
|
|
29,354
|
|
|
23,243
|
|
||||
Total
|
$
|
1,386,693
|
|
|
$
|
1,348,713
|
|
|
$
|
4,029,137
|
|
|
$
|
3,941,181
|
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax income (loss) excluding noncontrolling interests:
|
|
|
|
|
|
|
|
|
|||||||
United States
|
$
|
197,537
|
|
|
$
|
202,574
|
|
|
$
|
550,606
|
|
|
$
|
581,361
|
|
Canada
|
3,832
|
|
|
5,706
|
|
|
13,026
|
|
|
13,193
|
|
||||
Europe
|
(2,234
|
)
|
|
(573
|
)
|
|
(3,577
|
)
|
|
(4,299
|
)
|
||||
Other
|
(1,370
|
)
|
|
423
|
|
|
4,166
|
|
|
1,103
|
|
||||
Total
|
$
|
197,765
|
|
|
$
|
208,130
|
|
|
$
|
564,221
|
|
|
$
|
591,358
|
|
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
(in thousands)
|
||||||
Total assets:
|
|
|
|
||||
United States
(1)
|
$
|
26,460,926
|
|
|
$
|
24,543,645
|
|
Canada
(2)
|
2,274,163
|
|
|
1,814,178
|
|
||
Europe
|
66,296
|
|
(3)
|
36,669
|
|
||
Other
|
42,046
|
|
|
85,192
|
|
||
Total
|
$
|
28,843,431
|
|
|
$
|
26,479,684
|
|
(1)
|
“Adjusted pre-tax income,” “adjusted net income,” and “adjusted diluted earnings per share” are each non-GAAP financial measures. Please see the “reconciliation of the GAAP results to the non-GAAP measures” in this Item 2, for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures, and for other important disclosures.
|
•
|
Our Private Client Group segment generated net revenues of
$901 million
, a
1%
increase, while pre-tax income decreased
5%
to
$82 million
. The increase in revenues is primarily attributable to an increase in account and service fee income, most notably an increase in fees associated with our multi-bank client cash sweep program resulting from both an increase in short-term interest rates, and an increase in client cash balances resulting from clients’ reaction to market volatility and uncertainty. While securities commissions and fee revenues declined slightly, fees arising from fee-based accounts increased and partially offset declines in commissions on mutual funds, equity securities, and new issue sales credits. Client assets under administration of the Private Client Group increased
6%
over the prior year, to
$506.0 billion
at
June 30, 2016
. Net inflows of client assets have been positively impacted by successful retention and recruiting of financial advisors. Non-interest expenses increased $13 million, or 2%, compared to the prior year quarter, primarily resulting from an increase in legal and regulatory expenses. The segment’s margin on net revenues decreased to 9.1% from 9.7% in the comparable prior year quarter.
|
•
|
The Capital Markets segment generated net revenues of
$252 million
, an
8%
increase, while pre-tax income increased
$14 million
, or
79%
, to
$33 million
. Trading profits increased $14 million, or 88%, as a result of increased fixed income trading activity due in part to the volatility surrounding the Brexit vote in June. Institutional commissions on fixed income products increased
$4 million
, or
5%
, and institutional commissions on equity products increased
$4 million
, or
8%
. Merger and acquisition and advisory fee revenues increased
$5 million
, or
16%
, offset by a decrease in equity underwriting fee revenues of
$8 million
, or
36%
. Non-interest expenses increased $8 million, or 4%, compared to the prior year quarter level, primarily resulting from an increase in commission expenses that was correlated with the increase in commission revenues.
|
•
|
Our Asset Management segment generated a
2%
increase in net revenues to
$101 million
, while pre-tax income increased $1 million, or 3%, to
$33 million
. Non-discretionary asset-based administration fee revenues increased, driven by an increase in assets held in such programs over the prior year level to
$106.0 billion
as of
June 30, 2016
. Advisory fee revenues from managed programs decreased by $1 million, or 1%, compared to the prior year quarter amount despite the increase in financial assets under management in managed programs to $71.7 billion as of
June 30, 2016
. Non-interest expenses only increased $1 million, or 2%, compared to the prior year quarter.
|
•
|
RJ Bank generated a
22%
increase in net revenues to a record
$127 million
, while pre-tax income increased
$11 million
, or
14%
, to
$89 million
. The increase in pre-tax income resulted primarily from an increase in net interest income, offset by an increase in the provision for loan losses. Net interest income increased due to growth in the average loans outstanding. The net interest margin approximated the prior year period level. The increase in the provision for loan losses as compared to the prior year was primarily due to charges during the current period resulting from loan growth, while the prior year period reflected a loan loss benefit that resulted from the favorable resolution of certain criticized loans that did not recur in the current period.
|
•
|
Activities in our Other segment reflect a pre-tax loss that is
$32 million
, or
531%
, more than the prior year period. Total revenues in the segment decreased $12 million, or 41%, primarily resulting from an $11 million gain on the sale of certain ARS securities in the prior year period that did not recur in the current period. Acquisition-related expenses of $13 million are reflected in this segment, which did not occur in the prior year period.
|
•
|
Our Private Client Group segment generated net revenues of
$2.65 billion
, a
2%
increase, while pre-tax income decreased
8%
to
$234 million
. Account and service fee income increased for the reasons described in the quarter discussion above. While securities commissions and fee revenues approximated the prior year amount, such fees arising from fee-based accounts have increased and offset declines in commissions on mutual funds, equity securities and new issue sales credits. Non-interest expenses increased compared to the prior year level, most significantly due to higher administrative expenses to support our continued growth, higher communications and information technology expenses resulting from our continued investments in our platform, and an increase in other expense in part due to certain legal and regulatory expenses. The segment’s margin on net revenues decreased to
8.8%
from
9.8%
in the comparable prior year period.
|
•
|
The Capital Markets segment generated revenues of
$728 million
, a
2%
increase, while pre-tax income increased
$19 million
, or
29%
, to
$86 million
. The increase in revenues is driven by an increase in trading profits, and to a lesser extent an increase in tax credit fund syndication fee revenues, offset by declines in equity underwriting fee and merger and acquisition and advisory fee revenues. Non-interest expenses approximate the prior year level.
|
•
|
Our Asset Management segment generated revenues of
$298 million
, a
2%
increase, while pre-tax income decreased
$5 million
, or
5%
, to
$97 million
. Non-discretionary asset-based administration fee revenues increased, driven by an increase in assets held in such programs over the prior year level. Advisory fee revenues from managed programs have decreased as the balances of financial assets under management in managed programs reflected decreases for most of the current year. Expenses have increased over the prior year period level, due in large part to a prior year reversal of certain incentive compensation expense accruals for associates who left the firm during the prior year, which did not recur in the current year.
|
•
|
RJ Bank generated net revenues of
$360 million
, a
17%
increase, while pre-tax income increased
$26 million
, or
12%
, to
$240 million
. The loan loss provision has increased nearly $17 million, or 162%, over the prior year period level due to higher corporate loan growth and charges during the current year resulting from loans outstanding within the energy sector.
|
•
|
Activities in our Other segment reflect a pre-tax loss that is
$47 million
, or
102%
, more than the prior year period. Total revenues in the segment decreased $25 million, or 44%, primarily resulting from an $18 million decrease in private equity gains, and an $11 million gain on the sale of certain ARS securities in the prior year period that did not recur in the current year. Acquisition-related expenses of $21 million are reflected in this segment, which did not occur in the prior year period.
|
•
|
During the nine months we repurchased approximately 3.2 million shares of our common stock in open market transactions, for a total purchase price of approximately $144.5 million, reflecting an average per share repurchase price of $45.69 (see Part II, Item 2 in this Form 10-Q, for additional information on these share repurchases).
|
(1)
|
“Adjusted pre-tax income,” “adjusted net income,” and “adjusted diluted earnings per share” are each non-GAAP financial measures. Please see the “reconciliation of the GAAP results to the non-GAAP measures” in this Item 2, for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures, and for other important disclosures.
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
|
|
2016
|
|
2015
|
|
% change
|
|
2016
|
|
2015
|
|
% change
|
||||||||||
|
|
($ in thousands)
|
||||||||||||||||||||
Total company
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
$
|
1,386,693
|
|
|
$
|
1,348,713
|
|
|
3
|
%
|
|
$
|
4,029,137
|
|
|
$
|
3,941,181
|
|
|
2
|
%
|
Net revenues
|
|
$
|
1,358,482
|
|
|
$
|
1,320,989
|
|
|
3
|
%
|
|
$
|
3,944,493
|
|
|
$
|
3,859,227
|
|
|
2
|
%
|
Pre-tax income excluding noncontrolling interests
|
|
$
|
197,765
|
|
|
$
|
208,130
|
|
|
(5
|
)%
|
|
$
|
564,221
|
|
|
$
|
591,358
|
|
|
(5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Client Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
903,223
|
|
|
$
|
894,727
|
|
|
1
|
%
|
|
$
|
2,660,687
|
|
|
$
|
2,617,604
|
|
|
2
|
%
|
Net revenues
|
|
$
|
900,527
|
|
|
$
|
892,162
|
|
|
1
|
%
|
|
$
|
2,653,130
|
|
|
$
|
2,607,929
|
|
|
2
|
%
|
Pre-tax income
|
|
$
|
81,911
|
|
|
$
|
86,363
|
|
|
(5
|
)%
|
|
$
|
234,283
|
|
|
$
|
254,527
|
|
|
(8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
256,734
|
|
|
$
|
237,680
|
|
|
8
|
%
|
|
$
|
727,508
|
|
|
$
|
711,775
|
|
|
2
|
%
|
Net revenues
|
|
$
|
251,572
|
|
|
$
|
233,133
|
|
|
8
|
%
|
|
$
|
715,251
|
|
|
$
|
700,180
|
|
|
2
|
%
|
Pre-tax income
|
|
$
|
32,769
|
|
|
$
|
18,287
|
|
|
79
|
%
|
|
$
|
86,024
|
|
|
$
|
66,788
|
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
100,954
|
|
|
$
|
98,899
|
|
|
2
|
%
|
|
$
|
298,034
|
|
|
$
|
292,551
|
|
|
2
|
%
|
Net revenues
|
|
$
|
100,940
|
|
|
$
|
98,848
|
|
|
2
|
%
|
|
$
|
297,978
|
|
|
$
|
292,488
|
|
|
2
|
%
|
Pre-tax income
|
|
$
|
32,507
|
|
|
$
|
31,554
|
|
|
3
|
%
|
|
$
|
96,996
|
|
|
$
|
102,445
|
|
|
(5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
RJ Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
132,747
|
|
|
$
|
107,244
|
|
|
24
|
%
|
|
$
|
376,785
|
|
|
$
|
315,590
|
|
|
19
|
%
|
Net revenues
|
|
$
|
126,584
|
|
|
$
|
103,873
|
|
|
22
|
%
|
|
$
|
360,240
|
|
|
$
|
307,301
|
|
|
17
|
%
|
Pre-tax income
|
|
$
|
88,930
|
|
|
$
|
78,008
|
|
|
14
|
%
|
|
$
|
239,929
|
|
|
$
|
213,628
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
17,170
|
|
|
$
|
28,890
|
|
|
(41
|
)%
|
|
$
|
31,442
|
|
|
$
|
56,462
|
|
|
(44
|
)%
|
Net revenues
|
|
$
|
28
|
|
|
$
|
9,657
|
|
|
(100
|
)%
|
|
$
|
(24,379
|
)
|
|
$
|
(1,653
|
)
|
|
NM
|
|
Pre-tax loss
|
|
$
|
(38,352
|
)
|
|
$
|
(6,082
|
)
|
|
(531
|
)%
|
|
$
|
(93,011
|
)
|
|
$
|
(46,030
|
)
|
|
(102
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intersegment eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
(24,135
|
)
|
|
$
|
(18,727
|
)
|
|
(29
|
)%
|
|
$
|
(65,319
|
)
|
|
$
|
(52,801
|
)
|
|
(24
|
)%
|
Net revenues
|
|
$
|
(21,169
|
)
|
|
$
|
(16,684
|
)
|
|
(27
|
)%
|
|
$
|
(57,727
|
)
|
|
$
|
(47,018
|
)
|
|
(23
|
)%
|
|
|
Three months ended June 30, 2016
|
|
Nine months ended June 30, 2016
|
||||
|
|
($ in thousands, except per share amounts)
|
||||||
Net income attributable to RJF - GAAP
|
|
$
|
125,504
|
|
|
$
|
357,680
|
|
|
|
|
|
|
||||
Non-GAAP adjustments
:
|
|
|
|
|
||||
Acquisition-related expenses
(1)
|
|
13,445
|
|
|
21,332
|
|
||
Tax effect of non-GAAP adjustment
(2)
|
|
(4,919
|
)
|
|
(7,809
|
)
|
||
Non-GAAP adjustments, net of tax
|
|
8,526
|
|
|
13,523
|
|
||
Adjusted net income attributable to RJF - Non-GAAP
|
|
$
|
134,030
|
|
|
$
|
371,203
|
|
|
|
|
|
|
||||
Non-GAAP earnings per common share
:
|
|
|
|
|
||||
Non-GAAP basic
|
|
$
|
0.95
|
|
|
$
|
2.61
|
|
Non-GAAP diluted
|
|
$
|
0.93
|
|
|
$
|
2.56
|
|
|
|
|
|
|
||||
Average equity - GAAP
(3)
|
|
$
|
4,691,374
|
|
|
$
|
4,637,898
|
|
Average equity - non-GAAP
(3)
(4)
|
|
$
|
4,700,634
|
|
|
$
|
4,642,824
|
|
|
|
|
|
|
||||
Return on equity for the quarter (annualized)
|
|
10.7
|
%
|
|
N/A
|
|||
Return on equity for the quarter - non-GAAP (annualized)
(4)
|
|
11.4
|
%
|
|
N/A
|
|||
|
|
|
|
|
||||
Return on equity - year to date
|
|
N/A
|
|
10.3
|
%
|
|||
Return on equity year to date - non-GAAP
(5)
|
|
N/A
|
|
10.7
|
%
|
|||
|
|
|
|
|
||||
Pre-tax income attributable to RJF - GAAP
|
|
$
|
197,765
|
|
|
$
|
564,221
|
|
Total pre-tax non-GAAP adjustments (as detailed above)
|
|
13,445
|
|
|
21,332
|
|
||
Adjusted pre-tax income attributable to RJF non-GAAP
|
|
$
|
211,210
|
|
|
$
|
585,553
|
|
|
|
|
|
|
||||
Pre-tax margin on net revenues - GAAP
|
|
14.6
|
%
|
|
14.3
|
%
|
||
Pre-tax margin on net revenues - non-GAAP
(6)
|
|
15.6
|
%
|
|
14.8
|
%
|
(1)
|
The non-GAAP adjustment adds back to pre-tax income acquisition-related expenses incurred during each respective period associated with our acquisitions described above.
|
(2)
|
The non-GAAP adjustment reduces net income for the income tax effect of all the pre-tax non-GAAP adjustments, utilizing the year-to-date effective tax rate in such period to determine the current tax expense.
|
(3)
|
For the quarter, computed by adding the total equity attributable to RJF as of the date indicated plus the prior quarter-end total, divided by two. For the year-to-date period, computed by adding the total equity attributable to RJF as of each quarter-end date during the indicated year-to-date period, plus the beginning of the year total, divided by four.
|
(4)
|
The calculation of non-GAAP average equity includes the impact on equity of the non-GAAP adjustments described in the table above, as applicable for each respective period.
|
(5)
|
Computed by utilizing the adjusted net income attributable to RJF non-GAAP and the average equity non-GAAP, for each respective period. See footnotes (3) and (4) above for the calculation of average equity-non-GAAP.
|
(6)
|
Computed by dividing the adjusted pre-tax income attributable to RJF by net revenues (GAAP basis), for each respective period.
|
|
Three months ended June 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
|
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
|
$
|
1,710,742
|
|
|
$
|
16,809
|
|
|
3.93
|
%
|
|
$
|
1,777,330
|
|
|
$
|
16,755
|
|
|
3.77
|
%
|
Assets segregated pursuant to regulations and other segregated assets
|
3,564,664
|
|
|
4,915
|
|
|
0.55
|
%
|
|
2,470,545
|
|
|
3,350
|
|
|
0.54
|
%
|
||||
Bank loans, net of unearned income
(2)
|
14,754,557
|
|
|
126,354
|
|
|
3.46
|
%
|
|
12,155,952
|
|
|
103,017
|
|
|
3.40
|
%
|
||||
Available for sale securities
|
541,773
|
|
|
1,880
|
|
|
1.39
|
%
|
|
462,993
|
|
|
1,234
|
|
|
1.07
|
%
|
||||
Trading instruments
(3)
|
843,263
|
|
|
4,913
|
|
|
2.33
|
%
|
|
733,372
|
|
|
4,636
|
|
|
2.53
|
%
|
||||
Stock loan
|
622,268
|
|
|
2,296
|
|
|
1.48
|
%
|
|
410,867
|
|
|
2,910
|
|
|
2.83
|
%
|
||||
Loans to financial advisors
(3)
|
555,797
|
|
|
2,091
|
|
|
1.50
|
%
|
|
468,123
|
|
|
1,774
|
|
|
1.52
|
%
|
||||
Corporate cash and all other
(3)
|
2,357,685
|
|
|
4,552
|
|
|
0.77
|
%
|
|
2,925,738
|
|
|
3,471
|
|
|
0.47
|
%
|
||||
Total
|
$
|
24,950,749
|
|
|
$
|
163,810
|
|
|
2.63
|
%
|
|
$
|
21,404,920
|
|
|
$
|
137,147
|
|
|
2.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Brokerage client liabilities
|
$
|
4,146,248
|
|
|
$
|
619
|
|
|
0.06
|
%
|
|
$
|
3,623,228
|
|
|
$
|
213
|
|
|
0.02
|
%
|
Bank deposits
(2)
|
13,304,241
|
|
(4)
|
2,733
|
|
(4)
|
0.08
|
%
|
|
11,294,478
|
|
|
2,077
|
|
|
0.07
|
%
|
||||
Trading instruments sold but not yet purchased
(3)
|
274,429
|
|
|
1,277
|
|
|
1.86
|
%
|
|
309,722
|
|
|
1,158
|
|
|
1.50
|
%
|
||||
Stock borrow
|
64,732
|
|
|
789
|
|
|
4.88
|
%
|
|
126,090
|
|
|
1,082
|
|
|
3.43
|
%
|
||||
Other borrowings
|
698,054
|
|
|
3,324
|
|
|
1.90
|
%
|
|
714,705
|
|
|
1,983
|
|
|
1.11
|
%
|
||||
Senior notes
|
938,496
|
|
|
16,771
|
|
|
7.15
|
%
|
|
1,149,159
|
|
|
19,010
|
|
|
6.62
|
%
|
||||
Loans payable of consolidated variable interest entities
(3)
|
17,046
|
|
|
178
|
|
|
4.18
|
%
|
|
31,834
|
|
|
404
|
|
|
5.08
|
%
|
||||
Other
(3)
|
251,408
|
|
|
2,520
|
|
|
4.01
|
%
|
|
234,417
|
|
|
1,797
|
|
|
3.07
|
%
|
||||
Total
|
$
|
19,694,654
|
|
|
$
|
28,211
|
|
|
0.57
|
%
|
|
$
|
17,483,633
|
|
|
$
|
27,724
|
|
|
0.63
|
%
|
Net interest income
|
|
|
|
$
|
135,599
|
|
|
|
|
|
|
|
|
$
|
109,423
|
|
|
|
|
(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.
|
(4)
|
Net of affiliate deposit balances and interest expense associated with affiliate deposits.
|
|
Nine months ended June 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
|
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
|
$
|
1,770,909
|
|
|
$
|
51,311
|
|
|
3.86
|
%
|
|
$
|
1,785,980
|
|
|
$
|
50,268
|
|
|
3.75
|
%
|
Assets segregated pursuant to regulations and other segregated assets
|
3,444,704
|
|
|
15,573
|
|
|
0.60
|
%
|
|
2,423,417
|
|
|
10,139
|
|
|
0.56
|
%
|
||||
Bank loans, net of unearned income
(2)
|
14,126,661
|
|
|
357,325
|
|
|
3.39
|
%
|
|
11,908,477
|
|
|
299,829
|
|
|
3.36
|
%
|
||||
Available for sale securities
|
549,541
|
|
|
5,452
|
|
|
1.32
|
%
|
|
521,419
|
|
|
3,830
|
|
|
0.98
|
%
|
||||
Trading instruments
(3)
|
749,375
|
|
|
14,339
|
|
|
2.55
|
%
|
|
717,471
|
|
|
14,061
|
|
|
2.61
|
%
|
||||
Stock loan
|
578,953
|
|
|
6,423
|
|
|
1.48
|
%
|
|
417,232
|
|
|
10,120
|
|
|
3.23
|
%
|
||||
Loans to financial advisors
(3)
|
532,170
|
|
|
6,001
|
|
|
1.50
|
%
|
|
450,705
|
|
|
5,211
|
|
|
1.54
|
%
|
||||
Corporate cash and all other
(3)
|
2,662,167
|
|
|
11,424
|
|
|
0.57
|
%
|
|
2,884,663
|
|
|
10,211
|
|
|
0.47
|
%
|
||||
Total
|
$
|
24,414,480
|
|
|
$
|
467,848
|
|
|
2.56
|
%
|
|
$
|
21,109,364
|
|
|
$
|
403,669
|
|
|
2.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Brokerage client liabilities
|
$
|
4,216,125
|
|
|
$
|
1,481
|
|
|
0.05
|
%
|
|
$
|
3,615,490
|
|
|
$
|
737
|
|
|
0.03
|
%
|
Bank deposits
(2)
|
12,752,863
|
|
(4)
|
7,504
|
|
(4)
|
0.08
|
%
|
|
11,030,150
|
|
|
6,304
|
|
|
0.08
|
%
|
||||
Trading instruments sold but not yet purchased
(3)
|
289,280
|
|
|
3,839
|
|
|
1.77
|
%
|
|
294,872
|
|
|
3,376
|
|
|
1.53
|
%
|
||||
Stock borrow
|
75,827
|
|
|
2,185
|
|
|
3.84
|
%
|
|
144,215
|
|
|
4,495
|
|
|
4.16
|
%
|
||||
Other borrowings
|
739,925
|
|
|
9,417
|
|
|
1.70
|
%
|
|
729,605
|
|
|
4,171
|
|
|
0.76
|
%
|
||||
Senior notes
|
1,078,974
|
|
|
54,953
|
|
|
6.79
|
%
|
|
1,149,112
|
|
|
57,029
|
|
|
6.62
|
%
|
||||
Loans payable of consolidated variable interest entities
(3)
|
19,962
|
|
|
803
|
|
|
5.36
|
%
|
|
35,738
|
|
|
1,470
|
|
|
5.48
|
%
|
||||
Other
(3)
|
242,588
|
|
|
4,462
|
|
|
2.45
|
%
|
|
261,036
|
|
|
4,372
|
|
|
2.23
|
%
|
||||
Total
|
$
|
19,415,544
|
|
|
$
|
84,644
|
|
|
0.58
|
%
|
|
$
|
17,260,218
|
|
|
$
|
81,954
|
|
|
0.63
|
%
|
Net interest income
|
|
|
|
$
|
383,204
|
|
|
|
|
|
|
|
|
$
|
321,715
|
|
|
|
|
(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.
|
(4)
|
Net of affiliate deposit balances and interest expense associated with affiliate deposits.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
|
2016
|
|
% change
|
|
2015
|
|
2016
|
|
% change
|
|
2015
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities commissions and fees:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equities
|
$
|
58,665
|
|
|
(4
|
)%
|
|
$
|
61,390
|
|
|
$
|
177,612
|
|
|
(13
|
)%
|
|
$
|
204,958
|
|
Fixed income products
|
22,298
|
|
|
10
|
%
|
|
20,342
|
|
|
71,849
|
|
|
33
|
%
|
|
54,068
|
|
||||
Mutual funds
|
152,931
|
|
|
(14
|
)%
|
|
176,911
|
|
|
466,263
|
|
|
(10
|
)%
|
|
516,204
|
|
||||
Fee-based accounts
|
399,961
|
|
|
6
|
%
|
|
377,808
|
|
|
1,158,836
|
|
|
7
|
%
|
|
1,083,742
|
|
||||
Insurance and annuity products
|
93,232
|
|
|
2
|
%
|
|
91,821
|
|
|
281,508
|
|
|
5
|
%
|
|
267,378
|
|
||||
New issue sales credits
|
12,459
|
|
|
(44
|
)%
|
|
22,158
|
|
|
30,059
|
|
|
(51
|
)%
|
|
61,700
|
|
||||
Sub-total securities commissions and fees
|
739,546
|
|
|
(1
|
)%
|
|
750,430
|
|
|
2,186,127
|
|
|
—
|
|
|
2,188,050
|
|
||||
Interest
|
26,759
|
|
|
6
|
%
|
|
25,229
|
|
|
79,118
|
|
|
4
|
%
|
|
76,098
|
|
||||
Account and service fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Client account and service fees
|
60,023
|
|
|
36
|
%
|
|
44,019
|
|
|
166,165
|
|
|
27
|
%
|
|
130,845
|
|
||||
Mutual fund and annuity service fees
|
64,318
|
|
|
2
|
%
|
|
62,984
|
|
|
187,618
|
|
|
3
|
%
|
|
181,785
|
|
||||
Client transaction fees
|
4,664
|
|
|
16
|
%
|
|
4,023
|
|
|
15,468
|
|
|
12
|
%
|
|
13,856
|
|
||||
Correspondent clearing fees
|
585
|
|
|
(10
|
)%
|
|
650
|
|
|
1,922
|
|
|
4
|
%
|
|
1,852
|
|
||||
Account and service fees – all other
|
91
|
|
|
30
|
%
|
|
70
|
|
|
257
|
|
|
19
|
%
|
|
216
|
|
||||
Sub-total account and service fees
|
129,681
|
|
|
16
|
%
|
|
111,746
|
|
|
371,430
|
|
|
13
|
%
|
|
328,554
|
|
||||
Other
|
7,237
|
|
|
(1
|
)%
|
|
7,322
|
|
|
24,012
|
|
|
(4
|
)%
|
|
24,902
|
|
||||
Total revenues
|
903,223
|
|
|
1
|
%
|
|
894,727
|
|
|
2,660,687
|
|
|
2
|
%
|
|
2,617,604
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(2,696
|
)
|
|
5
|
%
|
|
(2,565
|
)
|
|
(7,557
|
)
|
|
(22
|
)%
|
|
(9,675
|
)
|
||||
Net revenues
|
900,527
|
|
|
1
|
%
|
|
892,162
|
|
|
2,653,130
|
|
|
2
|
%
|
|
2,607,929
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales commissions
|
545,628
|
|
|
(2
|
)%
|
|
554,692
|
|
|
1,616,137
|
|
|
—
|
|
|
1,619,711
|
|
||||
Admin & incentive compensation and benefit costs
|
149,729
|
|
|
7
|
%
|
|
140,105
|
|
|
440,459
|
|
|
8
|
%
|
|
407,663
|
|
||||
Communications and information processing
|
42,640
|
|
|
2
|
%
|
|
41,831
|
|
|
127,085
|
|
|
11
|
%
|
|
114,963
|
|
||||
Occupancy and equipment
|
30,581
|
|
|
3
|
%
|
|
29,793
|
|
|
92,487
|
|
|
3
|
%
|
|
89,800
|
|
||||
Business development
|
21,742
|
|
|
(9
|
)%
|
|
23,854
|
|
|
71,055
|
|
|
1
|
%
|
|
70,296
|
|
||||
Clearance and other
|
28,296
|
|
|
82
|
%
|
|
15,524
|
|
|
71,624
|
|
|
41
|
%
|
|
50,969
|
|
||||
Total non-interest expenses
|
818,616
|
|
|
2
|
%
|
|
805,799
|
|
|
2,418,847
|
|
|
3
|
%
|
|
2,353,402
|
|
||||
Pre-tax income
|
$
|
81,911
|
|
|
(5
|
)%
|
|
$
|
86,363
|
|
|
$
|
234,283
|
|
|
(8
|
)%
|
|
$
|
254,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Margin on net revenues
|
9.1
|
%
|
|
|
|
|
9.7
|
%
|
|
8.8
|
%
|
|
|
|
|
9.8
|
%
|
|
June 30,
2016 |
|
March 31,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
June 30,
2015 |
|
March 31,
2015 |
||||||||||||
|
(in billions)
|
||||||||||||||||||||||
Total PCG assets under administration
|
$
|
506.0
|
|
|
$
|
485.6
|
|
|
$
|
473.1
|
|
|
$
|
453.3
|
|
|
$
|
475.4
|
|
|
$
|
471.1
|
|
PCG assets in fee-based accounts
|
$
|
206.7
|
|
|
$
|
196.1
|
|
|
$
|
190.0
|
|
|
$
|
179.4
|
|
|
$
|
186.2
|
|
|
$
|
182.1
|
|
|
Employees
|
|
Independent contractors
|
|
June 30, 2016 total
|
|
September 30, 2015 total
|
|
June 30, 2015 total
|
|||||
RJ&A
|
2,649
|
|
|
—
|
|
|
2,649
|
|
|
2,571
|
|
|
2,541
|
|
Raymond James Financial Services, Inc.
|
—
|
|
|
3,697
|
|
|
3,697
|
|
|
3,544
|
|
|
3,487
|
|
Raymond James Ltd.
|
172
|
|
|
213
|
|
|
385
|
|
|
383
|
|
|
385
|
|
Raymond James Investment Services Limited (“RJIS”)
|
—
|
|
|
103
|
|
|
103
|
|
|
98
|
|
|
94
|
|
Total financial advisors
|
2,821
|
|
|
4,013
|
|
|
6,834
|
|
|
6,596
|
|
|
6,507
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
|
2016
|
|
% change
|
|
2015
|
|
2016
|
|
% change
|
|
2015
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Institutional sales commissions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity
|
$
|
58,916
|
|
|
8
|
%
|
|
$
|
54,575
|
|
|
$
|
175,244
|
|
|
(5
|
)%
|
|
$
|
184,702
|
|
Fixed income
|
79,306
|
|
|
5
|
%
|
|
75,557
|
|
|
231,147
|
|
|
8
|
%
|
|
214,567
|
|
||||
Sub-total institutional sales commissions
|
138,222
|
|
|
6
|
%
|
|
130,132
|
|
|
406,391
|
|
|
2
|
%
|
|
399,269
|
|
||||
Equity underwriting fees
|
14,373
|
|
|
(36
|
)%
|
|
22,466
|
|
|
30,738
|
|
|
(45
|
)%
|
|
56,282
|
|
||||
Merger & acquisition and advisory fees
|
36,068
|
|
|
16
|
%
|
|
31,136
|
|
|
102,076
|
|
|
(15
|
)%
|
|
119,633
|
|
||||
Fixed income investment banking
|
10,562
|
|
|
(3
|
)%
|
|
10,897
|
|
|
30,245
|
|
|
6
|
%
|
|
28,407
|
|
||||
Tax credit funds syndication fees
|
11,567
|
|
|
(6
|
)%
|
|
12,345
|
|
|
35,520
|
|
|
47
|
%
|
|
24,195
|
|
||||
Investment advisory fees
|
5,895
|
|
|
(5
|
)%
|
|
6,204
|
|
|
20,596
|
|
|
11
|
%
|
|
18,587
|
|
||||
Net trading profit
|
29,476
|
|
|
88
|
%
|
|
15,640
|
|
|
63,484
|
|
|
62
|
%
|
|
39,293
|
|
||||
Interest
|
6,201
|
|
|
11
|
%
|
|
5,594
|
|
|
18,272
|
|
|
9
|
%
|
|
16,769
|
|
||||
Other
|
4,370
|
|
|
34
|
%
|
|
3,266
|
|
|
20,186
|
|
|
116
|
%
|
|
9,340
|
|
||||
Total revenues
|
256,734
|
|
|
8
|
%
|
|
237,680
|
|
|
727,508
|
|
|
2
|
%
|
|
711,775
|
|
||||
Interest expense
|
(5,162
|
)
|
|
14
|
%
|
|
(4,547
|
)
|
|
(12,257
|
)
|
|
6
|
%
|
|
(11,595
|
)
|
||||
Net revenues
|
251,572
|
|
|
8
|
%
|
|
233,133
|
|
|
715,251
|
|
|
2
|
%
|
|
700,180
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales commissions
|
52,829
|
|
|
12
|
%
|
|
47,299
|
|
|
153,135
|
|
|
1
|
%
|
|
151,255
|
|
||||
Admin & incentive compensation and benefit costs
|
111,364
|
|
|
—
|
|
|
111,253
|
|
|
310,221
|
|
|
(1
|
)%
|
|
314,055
|
|
||||
Communications and information processing
|
18,351
|
|
|
3
|
%
|
|
17,815
|
|
|
53,856
|
|
|
1
|
%
|
|
53,291
|
|
||||
Occupancy and equipment
|
8,360
|
|
|
(1
|
)%
|
|
8,466
|
|
|
25,273
|
|
|
—
|
|
|
25,273
|
|
||||
Business development
|
9,209
|
|
|
(16
|
)%
|
|
10,991
|
|
|
29,730
|
|
|
(10
|
)%
|
|
32,977
|
|
||||
Losses and non-interest expenses of real estate partnerships held by consolidated VIEs
|
14,042
|
|
|
32
|
%
|
|
10,655
|
|
|
32,468
|
|
|
9
|
%
|
|
29,761
|
|
||||
Clearance and all other
|
19,190
|
|
|
2
|
%
|
|
18,774
|
|
|
56,322
|
|
|
(2
|
)%
|
|
57,357
|
|
||||
Total non-interest expenses
|
233,345
|
|
|
4
|
%
|
|
225,253
|
|
|
661,005
|
|
|
—
|
|
|
663,969
|
|
||||
Income before taxes and including noncontrolling interests
|
18,227
|
|
|
131
|
%
|
|
7,880
|
|
|
54,246
|
|
|
50
|
%
|
|
36,211
|
|
||||
Noncontrolling interests
|
(14,542
|
)
|
|
|
|
(10,407
|
)
|
|
(31,778
|
)
|
|
|
|
(30,577
|
)
|
||||||
Pre-tax income excluding noncontrolling interests
|
$
|
32,769
|
|
|
79
|
%
|
|
$
|
18,287
|
|
|
$
|
86,024
|
|
|
29
|
%
|
|
$
|
66,788
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
|
2016
|
|
% change
|
|
2015
|
|
2016
|
|
% change
|
|
2015
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment advisory and related administrative fees:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Managed programs
|
$
|
67,017
|
|
|
(1
|
)%
|
|
$
|
67,917
|
|
|
$
|
200,289
|
|
|
(2
|
)%
|
|
$
|
203,427
|
|
Non-discretionary asset-based administration
|
18,613
|
|
|
7
|
%
|
|
17,349
|
|
|
54,349
|
|
|
11
|
%
|
|
49,150
|
|
||||
Sub-total investment advisory and related administrative fees
|
85,630
|
|
|
—
|
|
|
85,266
|
|
|
254,638
|
|
|
1
|
%
|
|
252,577
|
|
||||
Other
|
15,324
|
|
|
12
|
%
|
|
13,633
|
|
|
43,396
|
|
|
9
|
%
|
|
39,974
|
|
||||
Total revenues
|
100,954
|
|
|
2
|
%
|
|
98,899
|
|
|
298,034
|
|
|
2
|
%
|
|
292,551
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Admin & incentive compensation and benefit costs
|
28,062
|
|
|
3
|
%
|
|
27,236
|
|
|
83,050
|
|
|
10
|
%
|
|
75,199
|
|
||||
Communications and information processing
|
6,682
|
|
|
7
|
%
|
|
6,248
|
|
|
20,209
|
|
|
7
|
%
|
|
18,821
|
|
||||
Occupancy and equipment
|
1,100
|
|
|
(3
|
)%
|
|
1,139
|
|
|
3,335
|
|
|
(2
|
)%
|
|
3,395
|
|
||||
Business development
|
2,139
|
|
|
(19
|
)%
|
|
2,636
|
|
|
7,461
|
|
|
2
|
%
|
|
7,324
|
|
||||
Investment sub-advisory fees
|
14,263
|
|
|
1
|
%
|
|
14,093
|
|
|
41,454
|
|
|
2
|
%
|
|
40,794
|
|
||||
Other
|
15,344
|
|
|
2
|
%
|
|
15,081
|
|
|
42,953
|
|
|
5
|
%
|
|
40,857
|
|
||||
Total expenses
|
67,590
|
|
|
2
|
%
|
|
66,433
|
|
|
198,462
|
|
|
6
|
%
|
|
186,390
|
|
||||
Income before taxes and including noncontrolling interests
|
33,364
|
|
|
3
|
%
|
|
32,466
|
|
|
99,572
|
|
|
(6
|
)%
|
|
106,161
|
|
||||
Noncontrolling interests
|
857
|
|
|
|
|
912
|
|
|
2,576
|
|
|
|
|
3,716
|
|
||||||
Pre-tax income excluding noncontrolling interests
|
$
|
32,507
|
|
|
3
|
%
|
|
$
|
31,554
|
|
|
$
|
96,996
|
|
|
(5
|
)%
|
|
$
|
102,445
|
|
|
June 30,
2016 |
|
March 31, 2016
|
|
September 30, 2015
|
|
June 30,
2015 |
|
March 31, 2015
|
|
September 30, 2014
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Financial assets under management:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Eagle Asset Management, Inc.
|
$
|
26,399
|
|
|
$
|
25,767
|
|
|
$
|
25,692
|
|
|
$
|
29,075
|
|
|
$
|
29,010
|
|
|
$
|
28,752
|
|
Freedom accounts
|
22,829
|
|
|
21,839
|
|
|
20,188
|
|
|
20,542
|
|
|
20,219
|
|
|
18,562
|
|
||||||
Raymond James Consulting Services
|
16,131
|
|
|
15,064
|
|
|
13,484
|
|
|
13,861
|
|
|
13,957
|
|
|
13,085
|
|
||||||
Unified Managed Accounts (“UMA”)
|
9,852
|
|
|
9,378
|
|
|
8,613
|
|
|
9,044
|
|
|
8,861
|
|
|
7,587
|
|
||||||
All other
|
1,066
|
|
|
1,071
|
|
|
1,116
|
|
|
1,595
|
|
|
1,450
|
|
|
1,382
|
|
||||||
Sub-total financial assets under management
|
76,277
|
|
|
73,119
|
|
|
69,093
|
|
|
74,117
|
|
|
73,497
|
|
|
69,368
|
|
||||||
Less: Assets managed for affiliated entities
|
(4,589
|
)
|
|
(4,316
|
)
|
|
(3,916
|
)
|
|
(3,936
|
)
|
|
(4,127
|
)
|
|
(4,811
|
)
|
||||||
Total financial assets under management
|
$
|
71,688
|
|
|
$
|
68,803
|
|
|
$
|
65,177
|
|
|
$
|
70,181
|
|
|
$
|
69,370
|
|
|
$
|
64,557
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
|
(in millions)
|
|
||||||||||||||
Financial assets under management at beginning of period
|
$
|
73,119
|
|
|
$
|
73,497
|
|
|
$
|
69,093
|
|
|
$
|
69,368
|
|
|
Net inflows of client assets
|
1,404
|
|
|
956
|
|
(1)
|
3,122
|
|
|
2,812
|
|
(1)
|
||||
Net market appreciation (depreciation) in asset values
|
1,754
|
|
|
(486
|
)
|
(1)
|
4,062
|
|
|
2,839
|
|
(1)
|
||||
Other
|
—
|
|
|
150
|
|
|
—
|
|
|
(902
|
)
|
(2)
|
||||
Financial assets under management at end of period
|
$
|
76,277
|
|
|
$
|
74,117
|
|
|
$
|
76,277
|
|
|
$
|
74,117
|
|
|
(1)
|
Revised from the amounts reported in the prior year periods in order to present on a basis consistent with the current period. In the prior year periods, the presentation of net inflows only included the asset flows associated with new clients, and cancellations associated with existing clients, to certain programs.
|
(2)
|
The other category in the prior year period includes $1.05 billion of assets that were previously included in Eagle Asset Management, Inc. programs which were transferred into non-discretionary asset-based programs. The asset balances in non-discretionary asset-based programs are discussed below.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
|
2016
|
|
% change
|
|
2015
|
|
2016
|
|
% change
|
|
2015
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
129,850
|
|
|
23
|
%
|
|
$
|
105,425
|
|
|
$
|
367,717
|
|
|
20
|
%
|
|
$
|
306,922
|
|
Interest expense
|
(6,163
|
)
|
|
83
|
%
|
|
(3,371
|
)
|
|
(16,545
|
)
|
|
100
|
%
|
|
(8,289
|
)
|
||||
Net interest income
|
123,687
|
|
|
21
|
%
|
|
102,054
|
|
|
351,172
|
|
|
18
|
%
|
|
298,633
|
|
||||
Other income
|
2,897
|
|
|
59
|
%
|
|
1,819
|
|
|
9,068
|
|
|
5
|
%
|
|
8,668
|
|
||||
Net revenues
|
126,584
|
|
|
22
|
%
|
|
103,873
|
|
|
360,240
|
|
|
17
|
%
|
|
307,301
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits
|
7,342
|
|
|
7
|
%
|
|
6,884
|
|
|
21,533
|
|
|
7
|
%
|
|
20,191
|
|
||||
Communications and information processing
|
2,382
|
|
|
43
|
%
|
|
1,662
|
|
|
5,920
|
|
|
43
|
%
|
|
4,135
|
|
||||
Occupancy and equipment
|
281
|
|
|
(14
|
)%
|
|
325
|
|
|
863
|
|
|
(9
|
)%
|
|
948
|
|
||||
Loan loss provision (benefit)
|
3,452
|
|
|
215
|
%
|
|
(3,009
|
)
|
|
26,991
|
|
|
162
|
%
|
|
10,293
|
|
||||
FDIC insurance premiums
|
4,487
|
|
|
50
|
%
|
|
2,992
|
|
|
11,540
|
|
|
32
|
%
|
|
8,715
|
|
||||
Affiliate deposit account servicing fees
|
11,542
|
|
|
20
|
%
|
|
9,593
|
|
|
31,444
|
|
|
20
|
%
|
|
26,190
|
|
||||
Other
|
8,168
|
|
|
10
|
%
|
|
7,418
|
|
|
22,020
|
|
|
(5
|
)%
|
|
23,201
|
|
||||
Total non-interest expenses
|
37,654
|
|
|
46
|
%
|
|
25,865
|
|
|
120,311
|
|
|
28
|
%
|
|
93,673
|
|
||||
Pre-tax income
|
$
|
88,930
|
|
|
14
|
%
|
|
$
|
78,008
|
|
|
$
|
239,929
|
|
|
12
|
%
|
|
$
|
213,628
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Net loan (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
||||||||
C&I loans
|
$
|
(782
|
)
|
|
$
|
—
|
|
|
$
|
(2,476
|
)
|
|
$
|
298
|
|
CRE loans
|
—
|
|
|
3,773
|
|
|
—
|
|
|
3,773
|
|
||||
Residential mortgage loans
|
44
|
|
|
(278
|
)
|
|
(122
|
)
|
|
(339
|
)
|
||||
SBL
(1)
|
56
|
|
|
6
|
|
|
77
|
|
|
20
|
|
||||
Total
|
$
|
(682
|
)
|
|
$
|
3,501
|
|
|
$
|
(2,521
|
)
|
|
$
|
3,752
|
|
|
June 30, 2016
|
|
September 30, 2015
|
||||
|
(in thousands)
|
||||||
Allowance for loan losses:
|
|
|
|
||||
Loans held for investment:
|
|
|
|
|
|
||
C&I loans
|
$
|
136,667
|
|
|
$
|
117,623
|
|
CRE construction loans
|
3,433
|
|
|
2,707
|
|
||
CRE loans
|
33,096
|
|
|
30,486
|
|
||
Tax-exempt loans
|
8,008
|
|
|
5,949
|
|
||
Residential mortgage loans
|
12,020
|
|
|
12,526
|
|
||
SBL
|
3,658
|
|
|
2,966
|
|
||
Total
|
$
|
196,882
|
|
|
$
|
172,257
|
|
|
|
|
|
||||
Nonperforming assets:
|
|
|
|
|
|
||
Nonperforming loans:
|
|
|
|
|
|
||
C&I loans
|
$
|
36,264
|
|
|
$
|
—
|
|
CRE loans
|
4,364
|
|
|
4,796
|
|
||
Residential mortgage loans:
|
|
|
|
||||
Residential first mortgage
|
40,628
|
|
|
47,504
|
|
||
Home equity loans/lines
|
84
|
|
|
319
|
|
||
Total nonperforming loans
|
81,340
|
|
|
52,619
|
|
||
Other real estate owned:
|
|
|
|
|
|
||
Residential:
|
|
|
|
|
|
||
Residential first mortgage
|
4,677
|
|
|
4,631
|
|
||
Home equity
|
83
|
|
|
—
|
|
||
Total other real estate owned
|
4,760
|
|
|
4,631
|
|
||
Total nonperforming assets
|
$
|
86,100
|
|
|
$
|
57,250
|
|
Total nonperforming assets, net as a % of RJ Bank total assets
|
0.52
|
%
|
|
0.39
|
%
|
||
|
|
|
|
||||
Total loans:
|
|
|
|
||||
Loans held for sale, net
(2)
|
$
|
206,918
|
|
|
$
|
119,519
|
|
Loans held for investment:
|
|
|
|
|
|||
C&I loans
|
7,319,194
|
|
|
6,928,018
|
|
||
CRE construction loans
|
178,787
|
|
|
162,356
|
|
||
CRE loans
|
2,452,373
|
|
|
2,054,154
|
|
||
Tax-exempt loans
|
701,339
|
|
|
484,537
|
|
||
Residential mortgage loans
|
2,351,387
|
|
|
1,962,614
|
|
||
SBL
|
1,827,490
|
|
|
1,481,504
|
|
||
Net unearned income and deferred expenses
|
(41,090
|
)
|
|
(32,424
|
)
|
||
Total loans held for investment
(2)
|
14,789,480
|
|
|
13,040,759
|
|
||
Total loans
(2)
|
$
|
14,996,398
|
|
|
$
|
13,160,278
|
|
(1)
|
The SBL portfolio segment includes securities based and other consumer loans.
|
(2)
|
Net of unearned income and deferred expenses.
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||
|
Allowance
|
|
Loan category as a % of total loans receivable
|
|
Allowance
|
|
Loan category as a % of total loans receivable
|
||||||
|
($ in thousands)
|
||||||||||||
Loans held for sale
|
$
|
—
|
|
|
1
|
%
|
|
$
|
—
|
|
|
1
|
%
|
C&I loans
|
115,496
|
|
|
42
|
%
|
|
98,447
|
|
|
44
|
%
|
||
CRE construction loans
|
3,225
|
|
|
1
|
%
|
|
2,148
|
|
|
1
|
%
|
||
CRE loans
|
28,377
|
|
|
14
|
%
|
|
24,064
|
|
|
13
|
%
|
||
Tax-exempt loans
|
8,008
|
|
|
5
|
%
|
|
5,949
|
|
|
4
|
%
|
||
Residential mortgage loans
|
12,012
|
|
|
16
|
%
|
|
12,513
|
|
|
15
|
%
|
||
SBL
|
3,654
|
|
|
12
|
%
|
|
2,962
|
|
|
11
|
%
|
||
Foreign loans
|
26,110
|
|
|
9
|
%
|
|
26,174
|
|
|
11
|
%
|
||
Total
|
$
|
196,882
|
|
|
100
|
%
|
|
$
|
172,257
|
|
|
100
|
%
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Allowance for loan losses attributable to foreign loans, beginning of period:
|
$
|
27,509
|
|
|
$
|
21,244
|
|
|
$
|
26,174
|
|
|
$
|
19,891
|
|
Provision for loan losses - foreign loans
|
(1,291
|
)
|
|
1,675
|
|
|
(219
|
)
|
|
4,147
|
|
||||
Net charge-offs - foreign loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency translation adjustment
|
(108
|
)
|
|
131
|
|
|
155
|
|
|
(988
|
)
|
||||
Allowance for loan losses attributable to foreign loans, end of period
|
$
|
26,110
|
|
|
$
|
23,050
|
|
|
$
|
26,110
|
|
|
$
|
23,050
|
|
|
Deposits with other banks
|
|
C&I loans
|
|
CRE loans
|
|
Residential
mortgage loans
|
|
SBL
|
|
Total cross-border outstandings
(1)
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Canada
|
$
|
8,826
|
|
|
$
|
390,991
|
|
|
$
|
109,725
|
|
|
$
|
544
|
|
|
$
|
316
|
|
|
$
|
510,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Canada
|
$
|
122,810
|
|
|
$
|
456,602
|
|
|
$
|
178,230
|
|
|
$
|
557
|
|
|
$
|
328
|
|
|
$
|
758,527
|
|
(1)
|
Excludes any hedged, non-U.S. currency amounts.
|
|
Three months ended June 30,
|
|||||||||||||||||||||
|
2016
|
|
|
2015
|
||||||||||||||||||
|
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
|
$
|
128,600
|
|
|
$
|
969
|
|
|
3.32
|
%
|
|
|
$
|
87,549
|
|
|
$
|
532
|
|
|
2.55
|
%
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
6,222,036
|
|
|
58,293
|
|
|
3.71
|
%
|
|
|
5,660,534
|
|
|
51,683
|
|
|
3.61
|
%
|
||||
CRE construction loans
|
149,297
|
|
|
1,537
|
|
|
4.07
|
%
|
|
|
93,515
|
|
|
881
|
|
|
3.73
|
%
|
||||
CRE loans
|
2,053,749
|
|
|
15,097
|
|
|
2.91
|
%
|
|
|
1,403,313
|
|
|
11,907
|
|
|
3.36
|
%
|
||||
Tax-exempt loans
(2)
|
656,693
|
|
|
4,506
|
|
|
4.22
|
%
|
|
|
365,823
|
|
|
2,547
|
|
|
4.28
|
%
|
||||
Residential mortgage loans
|
2,291,571
|
|
|
16,751
|
|
|
2.89
|
%
|
|
|
1,964,225
|
|
|
14,364
|
|
|
2.89
|
%
|
||||
SBL
|
1,780,217
|
|
|
13,375
|
|
|
2.97
|
%
|
|
|
1,336,211
|
|
|
9,268
|
|
|
2.74
|
%
|
||||
Foreign:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
1,069,924
|
|
|
12,591
|
|
|
4.66
|
%
|
|
|
941,085
|
|
|
9,259
|
|
|
3.89
|
%
|
||||
CRE construction loans
|
5,509
|
|
|
117
|
|
|
8.42
|
%
|
|
|
24,876
|
|
|
241
|
|
|
3.83
|
%
|
||||
CRE loans
|
392,746
|
|
|
3,081
|
|
|
3.10
|
%
|
|
|
274,132
|
|
|
2,297
|
|
|
3.31
|
%
|
||||
Residential mortgage loans
|
2,308
|
|
|
18
|
|
|
2.96
|
%
|
|
|
2,853
|
|
|
21
|
|
|
2.57
|
%
|
||||
SBL
|
1,907
|
|
|
19
|
|
|
3.96
|
%
|
|
|
1,836
|
|
|
17
|
|
|
3.65
|
%
|
||||
Total loans, net
|
14,754,557
|
|
|
126,354
|
|
|
3.46
|
%
|
|
|
12,155,952
|
|
|
103,017
|
|
|
3.40
|
%
|
||||
Agency MBS
|
347,916
|
|
|
1,207
|
|
|
1.39
|
%
|
|
|
232,880
|
|
|
573
|
|
|
0.99
|
%
|
||||
Non-agency CMOs
|
66,830
|
|
|
432
|
|
|
2.59
|
%
|
|
|
87,759
|
|
|
552
|
|
|
2.52
|
%
|
||||
Cash
|
716,076
|
|
|
898
|
|
|
0.50
|
%
|
|
|
689,200
|
|
|
409
|
|
|
0.24
|
%
|
||||
FHLB stock, Federal Reserve Bank of Atlanta (“FRB”) stock, and other
|
219,281
|
|
|
959
|
|
|
1.75
|
%
|
|
|
108,775
|
|
|
874
|
|
|
3.22
|
%
|
||||
Total interest-earning banking assets
|
16,104,660
|
|
|
$
|
129,850
|
|
|
3.26
|
%
|
|
|
13,274,566
|
|
|
$
|
105,425
|
|
|
3.19
|
%
|
||
Non-interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
(195,322
|
)
|
|
|
|
|
|
|
|
|
(162,610
|
)
|
|
|
|
|
|
|
||||
Unrealized loss on available for sale securities
|
(3,011
|
)
|
|
|
|
|
|
|
|
|
(4,445
|
)
|
|
|
|
|
|
|
||||
Other assets
|
302,125
|
|
|
|
|
|
|
|
|
|
346,511
|
|
|
|
|
|
|
|
||||
Total non-interest-earning banking assets
|
103,792
|
|
|
|
|
|
|
|
|
|
179,456
|
|
|
|
|
|
|
|
||||
Total banking assets
|
$
|
16,208,452
|
|
|
|
|
|
|
|
|
|
$
|
13,454,022
|
|
|
|
|
|
|
|
||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Certificates of deposit
|
$
|
341,829
|
|
|
$
|
1,320
|
|
|
1.55
|
%
|
|
|
$
|
348,899
|
|
|
$
|
1,438
|
|
|
1.65
|
%
|
Money market, savings, and NOW accounts
|
13,532,676
|
|
|
1,985
|
|
|
0.06
|
%
|
|
|
10,945,579
|
|
|
639
|
|
|
0.02
|
%
|
||||
FHLB advances and other
|
659,435
|
|
|
2,858
|
|
|
1.72
|
%
|
|
|
628,671
|
|
|
1,294
|
|
|
0.81
|
%
|
||||
Total interest-bearing banking liabilities
|
14,533,940
|
|
|
$
|
6,163
|
|
|
0.17
|
%
|
|
|
11,923,149
|
|
|
$
|
3,371
|
|
|
0.11
|
%
|
||
Non-interest-bearing banking liabilities
|
66,216
|
|
|
|
|
|
|
|
|
|
64,567
|
|
|
|
|
|
|
|
||||
Total banking liabilities
|
14,600,156
|
|
|
|
|
|
|
|
|
|
11,987,716
|
|
|
|
|
|
|
|
||||
Total banking shareholder’s equity
|
1,608,296
|
|
|
|
|
|
|
|
|
|
1,466,306
|
|
|
|
|
|
|
|
||||
Total banking liabilities and shareholder’s equity
|
$
|
16,208,452
|
|
|
|
|
|
|
|
|
|
$
|
13,454,022
|
|
|
|
|
|
|
|
||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
$
|
1,570,720
|
|
|
$
|
123,687
|
|
|
|
|
|
$
|
1,351,417
|
|
|
$
|
102,054
|
|
|
|
||
Bank net interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Spread
|
|
|
|
|
|
|
3.09
|
%
|
|
|
|
|
|
|
|
|
3.08
|
%
|
||||
Margin (net yield on interest-earning banking assets)
|
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
|
|
|
3.09
|
%
|
||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
|
|
|
|
|
|
110.81
|
%
|
|
|
|
|
|
|
|
111.33
|
%
|
|||||
Annualized return on average:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total banking assets
|
|
|
|
|
|
|
1.47
|
%
|
|
|
|
|
|
|
|
|
1.52
|
%
|
||||
Total banking shareholder’s equity
|
|
|
|
|
|
|
14.80
|
%
|
|
|
|
|
|
|
|
|
13.95
|
%
|
||||
Average equity to average total banking assets
|
|
|
|
|
|
|
9.92
|
%
|
|
|
|
|
|
|
|
|
10.90
|
%
|
(1)
|
Nonaccrual loans are included in the average loan balances. Payment or income received on corporate 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 June 30, 2016
and
2015
was $10 million and $6 million, respectively.
|
(2)
|
The yield is presented on a tax-equivalent basis utilizing the federal statutory tax rate of 35%.
|
|
Three months ended June 30,
|
||||||||||
|
2016 compared to 2015
|
||||||||||
|
Increase (decrease) due to
|
||||||||||
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
(in thousands)
|
||||||||||
Interest revenue:
|
|
|
|
|
|
||||||
Interest-earning banking assets:
|
|
|
|
|
|
||||||
Loans, net of unearned income:
|
|
|
|
|
|
||||||
Loans held for sale
|
$
|
249
|
|
|
$
|
188
|
|
|
$
|
437
|
|
Loans held for investment:
|
|
|
|
|
|
|
|||||
Domestic:
|
|
|
|
|
|
||||||
C&I loans
|
5,127
|
|
|
1,483
|
|
|
6,610
|
|
|||
CRE construction loans
|
526
|
|
|
130
|
|
|
656
|
|
|||
CRE loans
|
5,519
|
|
|
(2,329
|
)
|
|
3,190
|
|
|||
Tax-exempt loans
|
2,026
|
|
|
(67
|
)
|
|
1,959
|
|
|||
Residential mortgage loans
|
2,393
|
|
|
(6
|
)
|
|
2,387
|
|
|||
SBL
|
3,080
|
|
|
1,027
|
|
|
4,107
|
|
|||
Foreign:
|
|
|
|
|
|
||||||
C&I loans
|
1,268
|
|
|
2,064
|
|
|
3,332
|
|
|||
CRE construction loans
|
(188
|
)
|
|
64
|
|
|
(124
|
)
|
|||
CRE loans
|
994
|
|
|
(210
|
)
|
|
784
|
|
|||
Residential mortgage loans
|
(5
|
)
|
|
2
|
|
|
(3
|
)
|
|||
SBL
|
1
|
|
|
1
|
|
|
2
|
|
|||
Agency MBS
|
283
|
|
|
351
|
|
|
634
|
|
|||
Non-agency CMOs
|
(132
|
)
|
|
12
|
|
|
(120
|
)
|
|||
Cash
|
16
|
|
|
473
|
|
|
489
|
|
|||
FHLB stock, FRB stock, and other
|
888
|
|
|
(803
|
)
|
|
85
|
|
|||
Total interest-earning banking assets
|
22,045
|
|
|
2,380
|
|
|
24,425
|
|
|||
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|||
Deposits:
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit
|
(30
|
)
|
|
(88
|
)
|
|
(118
|
)
|
|||
Money market, savings and NOW accounts
|
151
|
|
|
1,195
|
|
|
1,346
|
|
|||
FHLB advances and other
|
64
|
|
|
1,500
|
|
|
1,564
|
|
|||
Total interest-bearing banking liabilities
|
185
|
|
|
2,607
|
|
|
2,792
|
|
|||
Change in net interest income
|
$
|
21,860
|
|
|
$
|
(227
|
)
|
|
$
|
21,633
|
|
|
Nine months ended June 30,
|
|||||||||||||||||||||
|
2016
|
|
|
2015
|
||||||||||||||||||
|
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
|
$
|
151,805
|
|
|
$
|
3,395
|
|
|
3.13
|
%
|
|
|
$
|
101,784
|
|
|
$
|
1,881
|
|
|
2.59
|
%
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
6,149,103
|
|
|
172,068
|
|
|
3.68
|
%
|
|
|
5,310,935
|
|
|
153,447
|
|
|
3.82
|
%
|
||||
CRE construction loans
|
143,502
|
|
|
5,091
|
|
|
4.66
|
%
|
|
|
88,943
|
|
|
2,690
|
|
|
3.99
|
%
|
||||
CRE loans
|
1,886,681
|
|
|
41,401
|
|
|
2.88
|
%
|
|
|
1,365,865
|
|
|
32,866
|
|
|
3.17
|
%
|
||||
Tax-exempt loans
(2)
|
587,521
|
|
|
11,998
|
|
|
4.19
|
%
|
|
|
252,357
|
|
|
5,534
|
|
|
4.50
|
%
|
||||
Residential mortgage loans
|
2,146,793
|
|
|
47,213
|
|
|
2.89
|
%
|
|
|
1,910,002
|
|
|
41,354
|
|
|
2.86
|
%
|
||||
SBL
|
1,665,768
|
|
|
37,191
|
|
|
2.93
|
%
|
|
|
1,202,954
|
|
|
25,022
|
|
|
2.74
|
%
|
||||
Foreign:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
999,216
|
|
|
29,598
|
|
|
3.89
|
%
|
|
|
1,349,997
|
|
|
29,610
|
|
|
2.89
|
%
|
||||
CRE construction loans
|
21,811
|
|
|
894
|
|
|
5.38
|
%
|
|
|
20,202
|
|
|
669
|
|
|
4.36
|
%
|
||||
CRE loans
|
370,307
|
|
|
8,371
|
|
|
2.97
|
%
|
|
|
298,546
|
|
|
6,644
|
|
|
2.93
|
%
|
||||
Residential mortgage loans
|
2,241
|
|
|
50
|
|
|
2.91
|
%
|
|
|
3,976
|
|
|
60
|
|
|
1.99
|
%
|
||||
SBL
|
1,913
|
|
|
55
|
|
|
3.76
|
%
|
|
|
2,916
|
|
|
52
|
|
|
2.34
|
%
|
||||
Total loans, net
|
14,126,661
|
|
|
357,325
|
|
|
3.39
|
%
|
|
|
11,908,477
|
|
|
299,829
|
|
|
3.36
|
%
|
||||
Agency MBS
|
348,234
|
|
|
3,554
|
|
|
1.36
|
%
|
|
|
247,362
|
|
|
1,733
|
|
|
0.93
|
%
|
||||
Non-agency CMOs
|
70,602
|
|
|
1,347
|
|
|
2.54
|
%
|
|
|
93,315
|
|
|
1,700
|
|
|
2.43
|
%
|
||||
Cash
|
795,014
|
|
|
2,655
|
|
|
0.44
|
%
|
|
|
616,189
|
|
|
1,018
|
|
|
0.22
|
%
|
||||
FHLB stock, FRB stock, and other
|
179,077
|
|
|
2,836
|
|
|
2.11
|
%
|
|
|
103,124
|
|
|
2,642
|
|
|
3.43
|
%
|
||||
Total interest-earning banking assets
|
15,519,588
|
|
|
$
|
367,717
|
|
|
3.18
|
%
|
|
|
12,968,467
|
|
|
$
|
306,922
|
|
|
3.16
|
%
|
||
Non-interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
(185,412
|
)
|
|
|
|
|
|
|
|
|
(156,797
|
)
|
|
|
|
|
|
|
||||
Unrealized loss on available for sale securities
|
(3,667
|
)
|
|
|
|
|
|
|
|
|
(4,879
|
)
|
|
|
|
|
|
|
||||
Other assets
|
275,858
|
|
|
|
|
|
|
|
|
|
334,099
|
|
|
|
|
|
|
|
||||
Total non-interest-earning banking assets
|
86,779
|
|
|
|
|
|
|
|
|
|
172,423
|
|
|
|
|
|
|
|
||||
Total banking assets
|
$
|
15,606,367
|
|
|
|
|
|
|
|
|
|
$
|
13,140,890
|
|
|
|
|
|
|
|
||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Certificates of deposit
|
$
|
352,971
|
|
|
$
|
4,174
|
|
|
1.58
|
%
|
|
|
$
|
347,191
|
|
|
$
|
4,421
|
|
|
1.70
|
%
|
Money market, savings, and NOW accounts
|
12,912,176
|
|
|
4,744
|
|
|
0.05
|
%
|
|
|
10,682,959
|
|
|
1,883
|
|
|
0.02
|
%
|
||||
FHLB advances and other
|
690,593
|
|
|
7,627
|
|
|
1.45
|
%
|
|
|
652,299
|
|
|
1,985
|
|
|
0.40
|
%
|
||||
Total interest-bearing banking liabilities
|
13,955,740
|
|
|
$
|
16,545
|
|
|
0.16
|
%
|
|
|
11,682,449
|
|
|
$
|
8,289
|
|
|
0.09
|
%
|
||
Non-interest-bearing banking liabilities
|
70,356
|
|
|
|
|
|
|
|
|
|
52,466
|
|
|
|
|
|
|
|
||||
Total banking liabilities
|
14,026,096
|
|
|
|
|
|
|
|
|
|
11,734,915
|
|
|
|
|
|
|
|
||||
Total banking shareholder’s equity
|
1,580,271
|
|
|
|
|
|
|
|
|
|
1,405,975
|
|
|
|
|
|
|
|
||||
Total banking liabilities and shareholder’s equity
|
$
|
15,606,367
|
|
|
|
|
|
|
|
|
|
$
|
13,140,890
|
|
|
|
|
|
|
|
||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
$
|
1,563,848
|
|
|
$
|
351,172
|
|
|
|
|
|
$
|
1,286,018
|
|
|
$
|
298,633
|
|
|
|
||
Bank net interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Spread
|
|
|
|
|
|
|
3.02
|
%
|
|
|
|
|
|
|
|
|
3.07
|
%
|
||||
Margin (net yield on interest-earning banking assets)
|
|
|
|
|
|
|
3.04
|
%
|
|
|
|
|
|
|
|
|
3.08
|
%
|
||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
|
|
|
|
|
|
111.21
|
%
|
|
|
|
|
|
|
|
111.01
|
%
|
|||||
Annualized return on average:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total banking assets
|
|
|
|
|
|
|
1.37
|
%
|
|
|
|
|
|
|
|
|
1.43
|
%
|
||||
Total banking shareholder’s equity
|
|
|
|
|
|
|
13.54
|
%
|
|
|
|
|
|
|
|
|
13.35
|
%
|
||||
Average equity to average total banking assets
|
|
|
|
|
|
|
10.13
|
%
|
|
|
|
|
|
|
|
|
10.70
|
%
|
(1)
|
Nonaccrual loans are included in the average loan balances. Payment or income received on corporate 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
nine months ended June 30, 2016
and
2015
was $25 million and $21 million, respectively.
|
(2)
|
The yield is presented on a tax-equivalent basis utilizing the federal statutory tax rate of 35%.
|
|
Nine months ended June 30,
|
||||||||||
|
2016 compared to 2015
|
||||||||||
|
Increase (decrease) due to
|
||||||||||
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
(in thousands)
|
||||||||||
Interest revenue:
|
|
|
|
|
|
||||||
Interest-earning banking assets:
|
|
|
|
|
|
||||||
Loans, net of unearned income:
|
|
|
|
|
|
||||||
Loans held for sale
|
$
|
925
|
|
|
$
|
589
|
|
|
$
|
1,514
|
|
Loans held for investment:
|
|
|
|
|
|
|
|||||
Domestic:
|
|
|
|
|
|
||||||
C&I loans
|
24,217
|
|
|
(5,596
|
)
|
|
18,621
|
|
|||
CRE construction loans
|
1,651
|
|
|
750
|
|
|
2,401
|
|
|||
CRE loans
|
12,532
|
|
|
(3,997
|
)
|
|
8,535
|
|
|||
Tax-exempt loans
|
7,350
|
|
|
(886
|
)
|
|
6,464
|
|
|||
Residential mortgage loans
|
5,127
|
|
|
732
|
|
|
5,859
|
|
|||
SBL
|
9,627
|
|
|
2,542
|
|
|
12,169
|
|
|||
Foreign:
|
|
|
|
|
|
||||||
C&I loans
|
(7,694
|
)
|
|
7,682
|
|
|
(12
|
)
|
|||
CRE construction loans
|
54
|
|
|
171
|
|
|
225
|
|
|||
CRE loans
|
1,597
|
|
|
130
|
|
|
1,727
|
|
|||
Residential mortgage loans
|
(26
|
)
|
|
16
|
|
|
(10
|
)
|
|||
SBL
|
(18
|
)
|
|
21
|
|
|
3
|
|
|||
Agency MBS
|
707
|
|
|
1,114
|
|
|
1,821
|
|
|||
Non-agency CMOs
|
(414
|
)
|
|
61
|
|
|
(353
|
)
|
|||
Cash
|
295
|
|
|
1,342
|
|
|
1,637
|
|
|||
FHLB stock, FRB stock, and other
|
1,946
|
|
|
(1,752
|
)
|
|
194
|
|
|||
Total interest-earning banking assets
|
57,876
|
|
|
2,919
|
|
|
60,795
|
|
|||
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|||
Deposits:
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit
|
74
|
|
|
(321
|
)
|
|
(247
|
)
|
|||
Money market, savings and NOW accounts
|
393
|
|
|
2,468
|
|
|
2,861
|
|
|||
FHLB advances and other
|
116
|
|
|
5,526
|
|
|
5,642
|
|
|||
Total interest-bearing banking liabilities
|
583
|
|
|
7,673
|
|
|
8,256
|
|
|||
Change in net interest income
|
$
|
57,293
|
|
|
$
|
(4,754
|
)
|
|
$
|
52,539
|
|
|
|||||||||||||||||||||
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||
|
2016
|
|
% change
|
|
2015
|
|
2016
|
|
% change
|
|
2015
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
3,905
|
|
|
35
|
%
|
|
$
|
2,892
|
|
|
$
|
10,142
|
|
|
7
|
%
|
|
$
|
9,510
|
|
Investment advisory fees
|
275
|
|
|
(46
|
)%
|
|
508
|
|
|
869
|
|
|
(21
|
)%
|
|
1,094
|
|
||||
Other
|
12,990
|
|
|
(49
|
)%
|
|
25,490
|
|
|
20,431
|
|
|
(55
|
)%
|
|
45,858
|
|
||||
Total revenues
|
17,170
|
|
|
(41
|
)%
|
|
28,890
|
|
|
31,442
|
|
|
(44
|
)%
|
|
56,462
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(17,142
|
)
|
|
(11
|
)%
|
|
(19,233
|
)
|
|
(55,821
|
)
|
|
(4
|
)%
|
|
(58,115
|
)
|
||||
Net revenues
|
28
|
|
|
(100
|
)%
|
|
9,657
|
|
|
(24,379
|
)
|
|
NM
|
|
|
(1,653
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and other
|
17,565
|
|
|
34
|
%
|
|
13,080
|
|
|
38,490
|
|
|
16
|
%
|
|
33,298
|
|
||||
Acquisition-related expenses
|
13,445
|
|
|
100
|
%
|
|
—
|
|
|
21,332
|
|
|
100
|
%
|
|
—
|
|
||||
Total non-interest expenses
|
31,010
|
|
|
137
|
%
|
|
13,080
|
|
|
59,822
|
|
|
80
|
%
|
|
33,298
|
|
||||
Loss before taxes and including noncontrolling interests
|
(30,982
|
)
|
|
(805
|
)%
|
|
(3,423
|
)
|
|
(84,201
|
)
|
|
(141
|
)%
|
|
(34,951
|
)
|
||||
Noncontrolling interests
|
7,370
|
|
|
|
|
2,659
|
|
|
8,810
|
|
|
|
|
11,079
|
|
||||||
Pre-tax loss excluding noncontrolling interests
|
$
|
(38,352
|
)
|
|
(531
|
)%
|
|
$
|
(6,082
|
)
|
|
$
|
(93,011
|
)
|
|
(102
|
)%
|
|
$
|
(46,030
|
)
|
|
For the three months ended June 30,
|
|
For the nine months ended June 30,
|
||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
RJF return on assets
(1)
|
1.8%
|
|
2.1%
|
|
1.7%
|
|
2.1%
|
RJF return on equity
(2)
|
10.7%
|
|
12.0%
|
|
10.3%
|
|
11.5%
|
Equity to assets
(3)
|
17.4%
|
|
18.9%
|
|
17.7%
|
|
19.1%
|
Dividend payout ratio
(4)
|
23.0%
|
|
19.8%
|
|
24.3%
|
|
21.2%
|
(1)
|
Computed as net income attributable to RJF for the period indicated, divided by average assets (the sum of total assets at the beginning and end of the period, divided by two) the product of which is then annualized.
|
(2)
|
Computed by utilizing the net income attributable to RJF for the period indicated, divided by the average equity attributable to RJF (for the quarter, computed by adding the total equity attributable to RJF as of the date indicated plus the prior quarter-end total, divided by two and for the year-to-date period, computed by adding the total equity attributable to RJF as of each quarter-end date during the indicated year-to-date period, plus the beginning of the year total, divided by four). The result is then annualized.
|
(3)
|
Computed as average equity (the sum of total equity at the beginning and end of the period, divided by two), divided by average assets (the sum of total assets at the beginning and end of the period, divided by two).
|
(4)
|
Computed as dividends declared per common share during the period as a percentage of diluted earnings per common share.
|
Cash and cash equivalents:
|
June 30, 2016
|
|
||
|
(in thousands)
|
|
||
RJF
|
$
|
527,323
|
|
(1) (2)
|
RJ&A
|
489,861
|
|
(2)
|
|
RJ Bank
|
419,713
|
|
|
|
RJ Ltd.
|
281,445
|
|
|
|
RJFS
|
100,246
|
|
|
|
RJFSA
|
18,837
|
|
|
|
Other subsidiaries
|
140,632
|
|
|
|
Total cash and cash equivalents
|
$
|
1,978,057
|
|
|
(1)
|
RJF maintains a depository account at RJ Bank which has a balance of
$502 million
as of
June 30, 2016
. This cash balance is reflected in the RJF total, and is excluded from the RJ Bank total, since this balance is available to RJF on-demand and without restriction.
|
(2)
|
RJF has loaned $442 million to RJ&A as of
June 30, 2016
(such amount is included in the RJ&A cash balance presented in this table), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.
|
|
As of June 30, 2016
|
|||||||||||||||||
|
RJ&A
(3)
|
|
RJ Ltd.
|
|
RJF
|
|
Total
|
|
Total number of counterparties
|
|||||||||
|
($ in thousands)
|
|
|
|||||||||||||||
Financing arrangement:
|
|
|
|
|
|
|
|
|
|
|||||||||
Committed secured
(1)
|
$
|
300,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300,000
|
|
|
3
|
|
Committed unsecured
|
—
|
|
|
—
|
|
|
300,000
|
|
|
300,000
|
|
|
1
|
|
||||
Uncommitted secured
(1)(2)
|
2,400,000
|
|
|
34,967
|
|
(4)
|
—
|
|
|
2,434,967
|
|
|
10
|
|
||||
Uncommitted unsecured
(1)(2)
|
375,000
|
|
|
—
|
|
|
50,000
|
|
|
425,000
|
|
|
7
|
|
||||
Total financing arrangements
|
$
|
3,075,000
|
|
|
$
|
34,967
|
|
|
$
|
350,000
|
|
|
$
|
3,459,967
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Outstanding borrowing amount:
|
|
|
|
|
|
|
|
|
|
|||||||||
Committed secured
(1)
|
$
|
80,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80,000
|
|
|
|
|
Committed unsecured
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||||
Uncommitted secured
(1)(2)
|
315,957
|
|
|
—
|
|
|
—
|
|
|
315,957
|
|
|
|
|||||
Uncommitted unsecured
(1)(2)
|
100,000
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|
|
|||||
Total outstanding borrowing amount
|
$
|
495,957
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
495,957
|
|
|
|
(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, however, as of June 30, 2016 we had outstanding borrowings under four such arrangements with lenders.
|
(3)
|
We generally utilize the RJ&A facilities to finance a portion of our fixed income securities trading instruments.
|
(4)
|
This financing arrangement is primarily denominated in Canadian dollars, amounts presented in the table have been converted to U.S. dollars at the currency exchange rate in effect as of
June 30, 2016
.
|
|
Repurchase transactions
|
|
Reverse repurchase transactions
|
||||||||||||||||||||
For the quarter 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)
|
||||||||||||||||||||||
June 30, 2016
|
$
|
239,237
|
|
|
$
|
266,158
|
|
|
$
|
266,158
|
|
|
$
|
433,003
|
|
|
$
|
457,777
|
|
|
$
|
444,812
|
|
March 31, 2016
|
268,150
|
|
|
266,761
|
|
|
190,679
|
|
|
419,112
|
|
|
471,925
|
|
|
428,864
|
|
||||||
December 31, 2015
|
270,586
|
|
|
247,730
|
|
|
245,554
|
|
|
423,059
|
|
|
415,346
|
|
|
405,507
|
|
||||||
September 30, 2015
|
280,934
|
|
|
332,536
|
|
|
332,536
|
|
|
432,131
|
|
|
498,871
|
|
|
474,144
|
|
||||||
June 30, 2015
|
233,451
|
|
|
255,870
|
|
|
251,769
|
|
|
425,342
|
|
|
445,591
|
|
|
416,516
|
|
Rating Agency
|
Rating
|
|
Outlook
|
Standard & Poor’s Ratings Services (“S&P”)
|
BBB
(1)
|
|
Positive
(1)
|
Moody’s Investors Service (“Moody’s”)
|
Baa2
(2)
|
|
Positive
(2)
|
(1)
|
The S&P rating and outlook are as presented in their December 2015 report.
|
(2)
|
The Moody’s rating and outlook are as presented in their June 2016 report.
|
|
Nine months ended June 30, 2016
|
|
VaR at
|
||||||||||||||||
|
High
|
|
Low
|
|
Daily
Average
|
|
June 30,
2016 |
|
September 30, 2015
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Daily VaR
|
$
|
2,624
|
|
|
$
|
619
|
|
|
$
|
1,485
|
|
|
$
|
2,261
|
|
|
$
|
1,173
|
|
Instantaneous changes in rate
|
|
Net interest income
|
|
Projected change in
net interest income
|
|
|
($ in thousands)
|
|
|
+300
|
|
$522,085
|
|
2.10%
|
+200
|
|
$524,284
|
|
2.53%
|
+100
|
|
$525,836
|
|
2.84%
|
0
|
|
$511,331
|
|
—
|
-50
|
|
$469,463
|
|
(8.19)%
|
Instantaneous changes in rate
|
|
Projected change in EVE
|
|
|
|
+300
|
|
(10.14)%
|
+200
|
|
(5.33)%
|
+100
|
|
(0.16)%
|
0
|
|
—
|
-50
|
|
(8.05)%
|
|
Due in
|
||||||||||||||
|
One year or less
|
|
> One year – five years
|
|
> 5 years
|
|
Total
(1)
|
||||||||
|
(in thousands)
|
||||||||||||||
Loans held for sale
|
$
|
—
|
|
|
$
|
39,832
|
|
|
$
|
150,570
|
|
|
$
|
190,402
|
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|||||
C&I loans
|
150,806
|
|
|
4,706,333
|
|
|
2,462,055
|
|
|
7,319,194
|
|
||||
CRE construction loans
|
33,130
|
|
|
119,796
|
|
|
25,861
|
|
|
178,787
|
|
||||
CRE loans
|
174,302
|
|
|
1,865,261
|
|
|
412,810
|
|
|
2,452,373
|
|
||||
Tax-exempt loans
|
—
|
|
|
—
|
|
|
701,339
|
|
|
701,339
|
|
||||
Residential mortgage loans
|
1,632
|
|
|
14,534
|
|
|
2,335,221
|
|
|
2,351,387
|
|
||||
SBL
|
1,822,452
|
|
|
5,002
|
|
|
36
|
|
|
1,827,490
|
|
||||
Total loans held for investment
|
2,182,322
|
|
|
6,710,926
|
|
|
5,937,322
|
|
|
14,830,570
|
|
||||
Total loans
|
$
|
2,182,322
|
|
|
$
|
6,750,758
|
|
|
$
|
6,087,892
|
|
|
$
|
15,020,972
|
|
(1)
|
Excludes any net unearned income and deferred expenses.
|
|
Interest rate type
|
||||||||||
|
Fixed
|
|
Adjustable
|
|
Total
(1)
|
||||||
|
(in thousands)
|
||||||||||
Loans held for sale
|
$
|
2,445
|
|
|
$
|
187,957
|
|
|
$
|
190,402
|
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|||
C&I loans
|
3,200
|
|
|
7,165,188
|
|
(2)
|
7,168,388
|
|
|||
CRE construction loans
|
—
|
|
|
145,657
|
|
(2)
|
145,657
|
|
|||
CRE loans
|
19,478
|
|
|
2,258,593
|
|
(2)
|
2,278,071
|
|
|||
Tax-exempt loans
|
701,339
|
|
|
—
|
|
|
701,339
|
|
|||
Residential mortgage loans
|
245,890
|
|
|
2,103,865
|
|
(2) (3)
|
2,349,755
|
|
|||
SBL
|
5,038
|
|
|
—
|
|
|
5,038
|
|
|||
Total loans held for investment
|
974,945
|
|
|
11,673,303
|
|
|
12,648,248
|
|
|||
Total loans
|
$
|
977,390
|
|
|
$
|
11,861,260
|
|
|
$
|
12,838,650
|
|
(1)
|
Excludes any net unearned income and deferred expenses.
|
(2)
|
Related contractual loan terms may include an interest rate floor and/or fixed interest rates for a certain period of time, which would impact the timing of the interest rate reset for the respective loan.
|
(3)
|
See the discussion within the “Risk Monitoring process” section of Item 3 in this Form 10-Q, for additional information regarding RJ Bank’s interest-only loan portfolio and related repricing schedule.
|
|
Nine months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
|
($ in thousands)
|
||||||
Allowance for loan losses, beginning of year
|
$
|
172,257
|
|
|
$
|
147,574
|
|
Provision for loan losses
|
26,991
|
|
|
10,293
|
|
||
Charge-offs:
|
|
|
|
|
|||
C&I loans
|
(2,476
|
)
|
|
(238
|
)
|
||
Residential mortgage loans
|
(963
|
)
|
|
(1,325
|
)
|
||
Total charge-offs
|
(3,439
|
)
|
|
(1,563
|
)
|
||
Recoveries:
|
|
|
|
|
|
||
C&I loans
|
—
|
|
|
536
|
|
||
CRE loans
|
—
|
|
|
3,773
|
|
||
Residential mortgage loans
|
841
|
|
|
986
|
|
||
SBL
(1)
|
77
|
|
|
20
|
|
||
Total recoveries
|
918
|
|
|
5,315
|
|
||
Net recoveries/(charge-offs)
|
(2,521
|
)
|
|
3,752
|
|
||
Foreign exchange translation adjustment
|
155
|
|
|
(988
|
)
|
||
Allowance for loan losses, end of period
|
$
|
196,882
|
|
|
$
|
160,631
|
|
Allowance for loan losses to bank loans outstanding
|
1.33
|
%
|
|
1.33
|
%
|
(1)
|
The SBL portfolio segment includes securities based and other consumer loans.
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery amount |
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery amount |
|
% of avg.
outstanding
loans
|
||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||
C&I loans
|
$
|
(782
|
)
|
|
0.04
|
%
|
|
$
|
—
|
|
|
—
|
|
|
$
|
(2,476
|
)
|
|
0.05
|
%
|
|
$
|
298
|
|
|
0.01
|
%
|
CRE loans
|
—
|
|
|
—
|
|
|
3,773
|
|
|
0.90
|
%
|
|
—
|
|
|
—
|
|
|
3,773
|
|
|
0.30
|
%
|
||||
Residential mortgage loans
|
44
|
|
|
0.01
|
%
|
|
(278
|
)
|
|
0.06
|
%
|
|
(122
|
)
|
|
0.01
|
%
|
|
(339
|
)
|
|
0.02
|
%
|
||||
SBL
(1)
|
56
|
|
|
0.01
|
|
|
6
|
|
|
—
|
|
|
77
|
|
|
0.01
|
%
|
|
20
|
|
|
—
|
|
||||
Total
|
$
|
(682
|
)
|
|
0.02
|
%
|
|
$
|
3,501
|
|
|
0.12
|
%
|
|
$
|
(2,521
|
)
|
|
0.02
|
%
|
|
$
|
3,752
|
|
|
0.04
|
%
|
(1)
|
The SBL portfolio segment includes securities based and other consumer loans.
|
|
June 30, 2016
|
|
September 30, 2015
|
||||||||||||
|
Nonperforming
loan balance
|
|
Allowance for
loan losses
balance
|
|
Nonperforming
loan balance
|
|
Allowance for
loan losses
balance
|
||||||||
|
(in thousands)
|
||||||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
||||
C&I loans
|
$
|
36,264
|
|
|
$
|
(136,667
|
)
|
|
$
|
—
|
|
|
$
|
(117,623
|
)
|
CRE construction loans
|
—
|
|
|
(3,433
|
)
|
|
—
|
|
|
(2,707
|
)
|
||||
CRE loans
|
4,364
|
|
|
(33,096
|
)
|
|
4,796
|
|
|
(30,486
|
)
|
||||
Tax-exempt loans
|
—
|
|
|
(8,008
|
)
|
|
—
|
|
|
(5,949
|
)
|
||||
Residential mortgage loans
|
40,712
|
|
|
(12,020
|
)
|
|
47,823
|
|
|
(12,526
|
)
|
||||
SBL
|
—
|
|
|
(3,658
|
)
|
|
—
|
|
|
(2,966
|
)
|
||||
Total
|
$
|
81,340
|
|
|
$
|
(196,882
|
)
|
|
$
|
52,619
|
|
|
$
|
(172,257
|
)
|
Total nonperforming loans as a % of RJ Bank total loans
|
0.54
|
%
|
|
|
|
0.40
|
%
|
|
|
|
Delinquent residential loans (amount)
|
|
Delinquent residential loans as a percentage of outstanding loan balances
|
|||||||||||||||||
|
30-89 days
|
|
90 days or more
|
|
Total
(1)
|
|
30-89 days
|
|
90 days or more
|
|
Total
(1)
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
First mortgage loans
|
$
|
4,191
|
|
|
$
|
24,664
|
|
|
$
|
28,855
|
|
|
0.18
|
%
|
|
1.05
|
%
|
|
1.23
|
%
|
Home equity loans/lines
|
77
|
|
|
67
|
|
|
144
|
|
|
0.37
|
%
|
|
0.33
|
%
|
|
0.70
|
%
|
|||
Total residential mortgage loans
|
$
|
4,268
|
|
|
$
|
24,731
|
|
|
$
|
28,999
|
|
|
0.18
|
%
|
|
1.05
|
%
|
|
1.23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First mortgage loans
|
$
|
4,849
|
|
|
$
|
28,036
|
|
|
$
|
32,885
|
|
|
0.25
|
%
|
|
1.44
|
%
|
|
1.69
|
%
|
Home equity loans/lines
|
30
|
|
|
231
|
|
|
261
|
|
|
0.14
|
%
|
|
1.09
|
%
|
|
1.23
|
%
|
|||
Total residential mortgage loans
|
$
|
4,879
|
|
|
$
|
28,267
|
|
|
$
|
33,146
|
|
|
0.25
|
%
|
|
1.44
|
%
|
|
1.69
|
%
|
(1)
|
Comprised of loans which are two or more payments past due as well as loans in process of foreclosure.
|
June 30, 2016
|
|
September 30, 2015
|
|||||
($ outstanding as a % of RJ Bank total residential mortgage loans)
|
|||||||
19.7
|
%
|
|
FL
|
|
20.5
|
%
|
FL
|
16.9
|
%
|
|
CA
(1)
|
|
19.6
|
%
|
CA
(1)
|
6.5
|
%
|
|
TX
|
|
5.9
|
%
|
NY
|
5.4
|
%
|
|
NY
|
|
5.8
|
%
|
TX
|
3.7
|
%
|
|
NJ
|
|
4.2
|
%
|
NJ
|
(1)
|
The concentration ratio for the state of California excludes 4.7% for
June 30, 2016
, and for
September 30, 2015
, respectively, for loans purchased from a large investment grade institution that have full repurchase recourse for any delinquent loans.
|
|
June 30, 2016
|
||
|
(in thousands)
|
||
One year or less
|
$
|
83,468
|
|
Over one year through two years
|
11,697
|
|
|
Over two years through three years
|
17,824
|
|
|
Over three years through four years
|
37,348
|
|
|
Over four years through five years
|
27,155
|
|
|
Over five years
|
110,009
|
|
|
Total outstanding residential interest-only loan balance
|
$
|
287,501
|
|
|
June 30, 2016
|
|
September 30, 2015
|
Residential first mortgage loan weighted-average LTV/FICO
|
66%/757
|
|
66%/757
|
June 30, 2016
|
|
September 30, 2015
|
||||||
($ outstanding as a % of RJ Bank total corporate loans)
|
||||||||
5.3
|
%
|
|
Office
|
|
5.8
|
%
|
|
Retail real estate
|
5.2
|
%
|
|
Hospitality
|
|
5.7
|
%
|
|
Pharmaceuticals
|
5.1
|
%
|
|
Retail real estate
|
|
5.5
|
%
|
|
Consumer products and services
|
5.0
|
%
|
|
Consumer products and services
|
|
5.4
|
%
|
|
Hospitality
|
4.2
|
%
|
|
Power and infrastructure
|
|
4.5
|
%
|
|
Automotive/transportation
|
ITEM 2.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
Total number of shares
purchased
(1)
|
|
Average price
per share
|
|
Number of shares purchased as part of publicly announced plans or programs
(2)
|
|
Approximate dollar value (in thousands) at each month-end, of securities that may yet be purchased under the plans or programs
(3) (4)
|
||||||
October 1, 2015 – October 31, 2015
|
4,699
|
|
|
$
|
51.71
|
|
|
—
|
|
|
$
|
93,112
|
|
November 1, 2015 – November 30, 2015
|
124,984
|
|
|
57.57
|
|
|
—
|
|
|
$
|
150,000
|
|
|
December 1, 2015 – December 31, 2015
|
80,836
|
|
|
58.15
|
|
|
—
|
|
|
$
|
150,000
|
|
|
First quarter
|
210,519
|
|
|
$
|
57.66
|
|
|
—
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
January 1, 2016 – January 31, 2016
|
2,273,592
|
|
|
$
|
47.44
|
|
|
2,234,366
|
|
|
$
|
44,231
|
|
February 1, 2016 – February 29, 2016
|
930,678
|
|
|
41.71
|
|
|
929,213
|
|
|
$
|
135,671
|
|
|
March 1, 2016 – March 31, 2016
|
7,622
|
|
|
45.43
|
|
|
—
|
|
|
$
|
135,671
|
|
|
Second quarter
|
3,211,892
|
|
|
$
|
45.78
|
|
|
3,163,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
April 1, 2016 – April 30, 2016
|
40,017
|
|
|
$
|
48.83
|
|
|
—
|
|
|
$
|
135,671
|
|
May 1, 2016 – May 31, 2016
|
6,098
|
|
|
52.73
|
|
|
—
|
|
|
$
|
135,671
|
|
|
June 1, 2016 – June 30, 2016
|
922
|
|
|
54.87
|
|
|
—
|
|
|
$
|
135,671
|
|
|
Third quarter
|
47,037
|
|
|
$
|
49.45
|
|
|
—
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Fiscal year-to-date total
|
3,469,448
|
|
|
$
|
46.55
|
|
|
3,163,579
|
|
|
|
|
(1)
|
Of the total for the
nine months ended June 30, 2016
, share purchases for the trust fund established to acquire our common stock in the open market and used to settle restricted stock units granted as a retention vehicle for certain employees of our wholly owned Canadian subsidiaries amounted to 84,642 shares, for a total consideration of $4.9 million (for more information on this trust fund, see Note 2 of the Notes to Consolidated Financial Statements on page 119 of our 2015 Form 10-K, and
Note 9
of the Notes to Condensed Consolidated Financial Statements in this Form 10-Q). These activities do not utilize the repurchase authority discussed in footnote (2) below.
|
(2)
|
During January and February 2016, we purchased shares of our common stock in open market transactions, for a total purchase price of $144.5 million, which reflects an average purchase price per share of $45.69. These share repurchases were made pursuant to the RJF securities repurchase authorizations described in footnotes (3) and (4) below.
|
(3)
|
On November 19, 2015, we announced an increase in the amount previously authorized by our Board of Directors to be used, at the discretion of our Securities Repurchase Committee, for open market repurchases of our common stock and certain senior notes, to $150 million subject to cash availability and other factors.
|
(4)
|
As a result of repurchases made during January 2016 and early February 2016, and to re-establish the prior authorization limit, on February 4, 2016, we announced an additional increase in the authorization limit. This February 4, 2016 action increased the amount previously authorized by our Board of Directors to be used back to $150 million (after consideration of the 2016 repurchases through such date) at the discretion of our Securities Repurchase Committee, for open market repurchases of our common stock and certain senior notes, subject to cash availability and other factors.
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
Exhibit Number
|
|
Description
|
3.1
|
|
Restated Articles of Incorporation of Raymond James Financial, Inc. as filed with the Secretary of State of Florida on November 25, 2008, incorporated by reference to Exhibit 3(i).1 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on November 28, 2008.
|
3.2
|
|
Amended and Restated By-Laws of Raymond James Financial, Inc., reflecting amendments adopted by the Board of Directors on February 20, 2015, incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 24, 2015.
|
4.1
|
|
Fifth Supplemental Indenture, dated as of July 12, 2016 (for the 3.625% Senior Notes due 2026), 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 to the Company's Current Report on Form 8-K, filed with the Securities and Exchange Commission on July 12, 2016.
|
4.2
|
|
Sixth Supplemental Indenture, dated as of July 12, 2016 (for the 4.950% Senior Notes due 2046), between Raymond James Financial, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K, filed with the Securities and Exchange Commission on July 12, 2016.
|
10.1
|
|
First Amendment to Revolving Credit Agreement, dated as of June 8, 2016, among Raymond James Financial, Inc., the Lenders party thereto, and Bank of America, N.A., incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 9, 2016.
|
10.2
|
|
Amended and Restated Raymond James Financial Long-Term Incentive Plan, effective February 19, 2015.
|
10.3
|
|
Raymond James Financial, Inc. Amended and Restated Voluntary Deferred Compensation Plan, effective February 23, 2016.
|
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
|
|
Statement of Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends.
|
31.1
|
|
Certification of Paul C. Reilly pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
Certification of Jeffrey P. Julien pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32
|
|
Certification of Paul C. Reilly and Jeffrey P. Julien pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
|
XBRL Instance Document.
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
RAYMOND JAMES FINANCIAL, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
Date:
|
August 8, 2016
|
|
/s/ Paul C. Reilly
|
|
|
|
Paul C. Reilly
|
|
|
|
Chief Executive Officer
|
|
|
|
|
Date:
|
August 8, 2016
|
|
/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 |
---|---|---|---|
Mr. Hobert founded WH Trading, LLC, a proprietary options and futures trading firm, in 1998. WH Trading serves as a market maker and liquidity provider in numerous asset classes at CME in both its open outcry and electronically traded markets. He is also a partner of Nirvana Brokerage Services LLC and Nirvana Technologies LLC and their companies. Nirvana Technology Solutions is a Chicago-based financial technology startup providing low-latency infrastructure for the trading community. Nirvana Brokerage Solutions is a CFTC registered introducing broker. From 1988 to 1994, Mr. Hobert worked for Cooper-Neff and Associates as an FX options market maker on the floor of CME and in over-the-counter markets. In 1994, he founded Hobert Trading Inc., which is currently a member of WH Trading, LLC. Mr. Hobert serves as a director of our political action committee. Mr. Hobert has over three decades of industry experience as an open outcry market maker, electronic options and futures trader, company founder and owner of WH Trading. He oversees the technology, risk management, operations and strategy development of the firm. Mr. Hobert led WH Trading's transition to a technology firm with the build of an electronic, automated trading operation. His career also includes government advocacy relating to the industry, including informal sessions with SEC and CFTC Commissioners, House and Senate Committees and Congressional Leadership. | |||
Mr. Shepard has been a member of CME for more than 45 years. Previously, he served as our Second Vice Chairman from 2002 to 2007. Mr. Shepard is founder and President of Shepard International, Inc., a futures commission merchant. Mr. Shepard brings to the board his experience as a long-time market participant. He is the founder of a futures commission merchant and was an investor in one of our largest clearing firms. It was this experience that led the board to appoint him to serve as the initial Chairperson of our clearing house oversight committee. This committee is designed to support the oversight of the risk management activities and the senior management of the Clearing House, including oversight with respect to the effectiveness of the risk management program, and plays an important role in supporting the board's oversight responsibilities. Mr. Shepard served as its Chair from its formation in 2016 to August 2021. He now serves as a Co-Chair of our clearing house risk committee and a member of our interest rate swaps risk committee. | |||
Mr. Bitsberger served as Managing Director and Portfolio Specialist on the Account Management Team at The TCW Group from March 2017 to February 2021, where he was responsible for communicating investment strategies, performance and outlook to clients. Previously, he served as Managing Director, Official Institutions FIG Coverage Group of BNP PNA, a subsidiary of BNP Paribas, from December 2010 to November 2015, as a senior consultant with Booz Allen Hamilton from May 2010 to November 2010 and was with BancAccess Financial from December 2009 to April 2010. He also served as Senior Vice President and Treasurer of Freddie Mac from 2006 to 2008. Mr. Bitsberger also served with the U.S. Treasury Department from 2001 to 2005, serving first as their Deputy Assistant Secretary for federal finance and as the Assistant Secretary for financial markets. He was confirmed by the U.S. Senate as the Assistant Secretary in 2004. Mr. Bitsberger has an extensive career in the financial services industry. In his role at TCW Group, Mr. Bitsberger was responsible for communicating investment strategies, performance and outlook to clients. Through his service at TCW, BNP PNA and BancAccess Financial, he has gained valuable experience in business development, investment strategy and worked with foreign institutions and regulators. His career also includes his prior service in key roles with the government relating to the financial industry, including serving as Deputy Assistant Secretary for Federal Finance at the U.S. Treasury and more recently as the Assistant Secretary for financial markets at the U.S. Treasury. Mr. Bitsberger served in a leadership role as Treasurer of Freddie Mac, working extensively with the central banks and foreign regulators. | |||
• We believe our ongoing board evolution will result in the strategic refreshment of our members, reduce our size, maintain our commitment to a range of perspectives and experiences and ensure the skill set of our board continues to align with our long-term strategy while avoiding disruption. • We are taking a phased approach to changes in board membership, considering the timing of new director onboarding relative to planned retirements and departures. At the 2025 annual meeting, Larry G. Gerdes, Daniel R. Glickman and Terry L. Savage will be retiring. The nominating and governance committee is recommending the election of Liam G. Smith as a new Class B-2 director. • New board members bring their fresh perspectives. We also recognize our obligations to educate them regarding the company's business and strategy in support of their ability to oversee management effectively. | |||
Mr. Duffy previously served as our Executive Chairman from 2006 to 2016, and has served in the combined Chairman and Chief Executive Officer role since 2016. He has been a member of our board since 1998. Mr. Duffy brings to his current role strategic leadership and knowledge of our business and industry. His career includes steering CME to demutualize and become a publicly-traded corporation, leading multiple mergers and acquisitions and expressing the company’s knowledge and views before numerous Congressional committees with respect to issues of importance to Congress, the company and industry over many years. | |||
Ms. Seifu has served as Director, Legal at Google LLC since November 2022 where she manages a team of lawyers supporting products and systems that enable Google services, such as privacy and data protection, content and child safety, user experience, customer support, GenAI tools, and support of Google's internal business functions. She has been an attorney at Google since April 2014 and served as the first acting Chief of Staff for the Legal Department and lead counsel to Google's Chief Information Officer and their organization. Prior to joining Google, Ms. Seifu was a Corporate Associate at Morrison & Foerster LLP from 2013 to 2014, where she focused on mergers and acquisitions and provided corporate governance guidance for public company boards and special committees. Ms. Seifu worked from 2008 to 2013 as a Corporate Associate at Davis Polk & Wardwell LLP, where she focused on mergers and acquisitions, investments, and various other corporate transactions. She also advised clients on regulatory compliance, securities law reporting, and corporate governance matters. Immediately following graduation from Yale Law School, Ms. Seifu served as a law clerk to the Honorable George B. Daniels of the Southern District of New York. Ms. Seifu's responsibilities at Google have included counsel on privacy and security matters, including matters related to Google's systems, assessments of vendor systems and implementation of controls to minimize security and privacy risks. She has also advised a number of internal teams on technology matters relating to systems safeguards, including mitigating risk related to new system integrations, access controls and contractual and procedural requirements designed to ensure third party compliance with Google’s security standards. Additionally, in her previous role as the first Chief of Staff for the Google Legal Department, Ms. Seifu was responsible for implementing strategy for the global organization and establishing processes to effectively manage the legal team. | |||
Ms. Lockett is the Founder of LEAP Innovations. She has served as its Strategic Advisor since February 2024 and previously served as its CEO since its formation in 2014. Prior to her role at LEAP, Ms. Lockett served as President and CEO of New Schools for Chicago, a venture philanthropy organization that invests in the start-up of new public schools, from 2005 to 2014. Ms. Lockett served from 1999 to 2005 as Executive Director of the Civic Consulting Alliance, a pro-bono consulting firm sponsored by the Civic Committee of the Commercial Club of Chicago that leads strategic planning initiatives, process improvement, and program development projects for government agencies. She also held marketing, sales, and business development roles with Fortune 500 companies including IBM, Kraft Foods and General Mills. Ms. Lockett is an independent director of the Federal Home Loan Bank of Chicago. She is also a member of The Economic Club of Chicago, The Chicago Network, the Commercial Club of Chicago and a Henry Crown Fellow with the Aspen Institute. Recently, Ms. Lockett was named a contributor to Forbes, where she writes about education innovation and the future of learning. Ms. Lockett is a serial entrepreneur who has led transformation efforts in education, government and the civic arena. She founded LEAP Innovations, a national non-profit organization that works with educators and technology companies across the United States, to research, pilot and scale new instructional designs and technology solutions that advance student learning. Before starting LEAP, Ms. Lockett was a driving force behind Chicago's charter school movement. As founding president and CEO of New Schools for Chicago, she helped raise more than $70 million to support opening 80 new public schools, primarily charters. For nearly a decade, she focused on bringing quality public schools to communities of high need and advocating for school choice. Through her prior corporate experience she has gained experience in sales, marketing and business development. | |||
Mr. Maloney has been a member of CME since 1985. Mr. Maloney has served as an independent floor broker in the Eurodollar (now SOFR) option pit from 2007 to present. Mr. Maloney has served on numerous CME functional committees: pit committee 1997-1999, nominating committee 1995-1996, arbitration committee 1994-1995, booth space committee 1992-1996 and floor practices committee 1995-1997. Mr. Maloney serves as a director of our political action committee. Mr. Maloney has served as a full-time floor trader and broker since 1985. Through this experience, he brings to the board his views as an active market participant and can convey the valuable perspective from the traders he interacts with on a daily basis. Over his career, he has served on numerous exchange-related committees. | |||
Mr. Mulchrone has been a member of CME since 1980. He also served as a member of our board from 1991 to 2001, including holding the position of Vice Chairman. Mr. Mulchrone served as a filling order broker in the Eurodollar pit until 2004. Mr. Mulchrone has been an independent trader from 2004 to present. Mr. Mulchrone is a founder of Advantage Futures (2003). He served as a member of the board of directors of Standard Bank and Trust until its sale in 2017. Mr. Mulchrone serves on the Board of Advisors of Misericordia Home. He serves as a Co-Vice Chair of our political action committee and has served on the Class B-2 nominating committee. Mr. Mulchrone received a B.S. in Accounting from Western Illinois University. Mr. Mulchrone brings more than 40 years of experience in the futures industry. In 2003, he founded Advantage Futures LLC, one of our clearing firms. Mr. Mulchrone's career also included his service on the board of governors at CME during the time when we transitioned from a member-owned and -run exchange to our for-profit organization. His career also includes service on the board of directors of the Standard Bank and Trust (2001 to 2017) where he was part of team that grew the assets fourfold to $2.5 billion and that led the successful sale of the bank in 2017. As a Co-Vice Chair of our political action committee, Mr. Mulchrone has regular interaction with government officials. | |||
Mr. Gepsman has served as a member of our board since 1994 and served as Secretary of the board from 1998 to 2007. He has been a member of CME for more than 35 years. Mr. Gepsman has also been an independent floor broker and trader since 1985. Mr. Gepsman currently serves as Chairman of our business conduct, membership and floor conduct committees and the CME Gratuity Fund. During his board tenure at CME, he served as a member on the compensation, strategic steering, executive, clearing house oversight, ethics and arbitration committees. Mr. Gepsman has also held board positions, including a Chairman's role, at the company’s former foreign exchange subsidiaries. Mr. Gepsman currently serves as Secretary and Treasurer of our political action committee. Mr. Gepsman also serves on the membership appeals committee with the National Futures Association. He was a member of the CBOE from 1982 to 1985. Mr. Gepsman brings to the board his long-term career as a participant in our markets. During his term on the board, he has served on numerous committees at the board level as well as those related to our exchange operations. His service has also included board roles on our regulated subsidiaries. Through these positions, Mr. Gepsman has acquired a deep understanding of our business operations, market regulatory functions and strategy. He also brings his valuable focus and understanding of options trading, which continues to be an area of focus in our corporate strategy. As Secretary and Treasurer of our political action committee, Mr. Gepsman regularly interacts with government officials. As Chairman of our business conduct, membership and floor conduct committees, Mr. Gepsman has extensive knowledge and experience in reviewing disciplinary charges and determining appropriate actions. | |||
Mr. Smith started his career in the derivatives industry over 16 years ago with CME Group. Since December 2024, he has served as the Chief Strategy Officer for Optiver, a leading global market maker and CME clearing firm, overseeing the strategic direction of the firm in the United States and United Kingdom. In this role, he has a mandate to lead market structure initiatives, business development, regulatory affairs, external partnerships, clearing, strategic investments and execution services for U.S. markets. He previously served as the Head of Corporate Strategy from 2018 to December 2024. Additionally, he is the chair of Optiver’s political action committee and has co-authored a number of influential white papers on market structure issues across futures and securities markets. Mr. Smith joined Optiver in 2017. Previously, Mr. Smith spent over nine years (2008 to 2017) at CME Group as a director in both products and sales, with assignments in Chicago, London and Singapore. Mr. Smith holds a Bachelor of Arts in Political Science from Providence College. With his extensive experience across exchanges, clearing, financial technology, market structure, trading and regulatory policy, Mr. Smith offers a unique and comprehensive perspective on both futures and securities markets. Through his nine years at CME Group he gained a valuable understanding of our business. While at Optiver, Mr. Smith has played a pivotal role, often leading a number of business expansions. These include building a direct futures, equities and options block liquidity business for institutional counterparties, spearheading financial technology investments, actively managing Optiver’s portfolio of companies, and advocating for positive market structure change for the trading industry. This international experience contributes to his expertise in global financial markets. | |||
• We believe our ongoing board evolution will result in the strategic refreshment of our members, reduce our size, maintain our commitment to a range of perspectives and experiences and ensure the skill set of our board continues to align with our long-term strategy while avoiding disruption. • We are taking a phased approach to changes in board membership, considering the timing of new director onboarding relative to planned retirements and departures. At the 2025 annual meeting, Larry G. Gerdes, Daniel R. Glickman and Terry L. Savage will be retiring. The nominating and governance committee is recommending the election of Liam G. Smith as a new Class B-2 director. • New board members bring their fresh perspectives. We also recognize our obligations to educate them regarding the company's business and strategy in support of their ability to oversee management effectively. | |||
Ms. Benesh retired from Deloitte in 2021 with 40 years of providing audit, assurance and advisory services to public and private companies within the energy, public utility, renewables, construction, manufacturing, and financial services industries. She also served as secretary and a board member of Deloitte & Touche LLP from 2004 to 2017, the board which had purview over the professional aspects of the audit & assurance practice. Through her career at Deloitte, she has gained experience with sustainability matters and responses required for cyber incidents. Ms. Benesh is a CPA and current member of the AICPA. Ms. Benesh is active in the community in both Detroit and New York supporting multiple non-profit organizations, including serving on the Board of the Marygrove Conservancy. Ms. Benesh is an audit committee financial expert. Throughout her career, she has performed audit services to public companies as well as gained experience with audit committees in performing the required communications and procedures . She brings valuable global financial services and corporate governance experience from her years at Deloitte working with clients in the energy and financial services industries. As a member of the Executive Team and Chief Quality Officer for Advisory Services at Deloitte, Ms. Benesh gained significant leadership and risk oversight management experience. | |||
Mr. Siegel has been a member of CME since 1977. In 1978, Mr. Siegel began his trading career at Moccatta Metals in their Class B arbitrage operations and served as an order filler until 1980. From there, he went on to fill orders and trade cattle from 1980 until 1982. At that time, Mr. Siegel became a partner and an officer in a futures commission merchant that cleared at CME until selling his ownership interest in 1990. For more than 35 years, Mr. Siegel has been an independent trader on our CME exchange. He continues to actively trade electronically in our agricultural product suite. Mr. Siegel is the Secretary and Treasurer of the CME Group Foundation. Mr. Siegel chairs our clearing house oversight committee. In addition to his background as a market participant, Mr. Siegel brings to the board his valuable experience from his long-time service as a former co-chair of our clearing house risk committee. This committee, on which Mr. Siegel held a leadership position from 2004 to August 2021, includes key representation from our clearing firm community. Mr. Siegel's long-time involvement as co-chair has fostered important relationships with our trading community and our Clearing House management and has greatly expanded his knowledge of our financial safeguards resources. Mr. Siegel now serves as the Chair of our clearing house oversight committee. | |||
For 2024, Charles P. Carey, Timothy S. Bitsberger, Elizabeth A. Cook, Harold Ford Jr., Daniel R. Glickman, Phyllis M. Lockett, Terry L Savage and Rahael Seifu served as members of the compensation committee. During 2024, none of the members of the compensation committee had served at any time as an officer or employee of CME Group. None of the members of the compensation committee has any relationship with us other than service as a director or member of one of our exchanges, except for (i) Mr. Carey serves as a member of our Agricultural Markets Advisory Council | |||
Ms. Cook has been a member of CME since 1983, starting her career in 1978 as a runner for Clayton Brokerage Inc. She is a member of the board's compensation and audit committees. Ms. Cook actively participates as co-chair of the CME arbitration and floor conduct committees and serves on the board of the CME Gratuity Fund. In addition, she serves on CME's membership and business conduct committees and continues her involvements with our political action committee. Ms. Cook is the founder and owner of MiCat Group LLC, a firm specializing in option execution services focusing on equities, FX and interest rates. She also serves as president of Lucky Star LLC, a commercial property management company. Ms. Cook serves as President of Women in Listed Derivatives Gives Back and on the board of trustees of Associated Colleges of Illinois. Her external activities include NACD Governance Fellow and completion of its Director Professionalism course, member of Business Executives for National Security, Ambassador of the Navy SEAL Foundation, Ambassador for The ALS United Greater Chicago and an active supporter of Honor Flight Chicago. Ms. Cook has participated in numerous risk and audit educational programs and as a long-time market participant has significant risk management experience. Ms. Cook brings her experience as a member since 1983 with a focus on our options complex, particularly FX and Eurodollar (now SOFR) options. Through her service on our disciplinary committees, Ms. Cook has gained insight into hearing and reviewing disciplinary charges and determining appropriate action. Ms. Cook, as a long-time user of our markets, has gained an understanding of our customer-facing systems and controls. Through her participation in the NACD's educational program, she has been recognized as a Governance Fellow gaining insight into best practices relating to corporate governance and board operations. | |||
Mr. Suskind has served as our independent Lead Director since May 2023. Mr. Suskind is a retired General Partner of Goldman Sachs & Co. He was an Executive Vice President at J. Aron and Company prior to its acquisition by Goldman Sachs in 1980. He joined J. Aron in 1961. During his tenure in trading, Mr. Suskind served as Vice Chairman of NYMEX, Vice Chairman of COMEX, a member of the board of the Futures Industry Association, a member of the board of International Precious Metals Institute, and a member of the boards of the Gold and Silver Institutes in Washington, DC. Mr. Suskind previously served on the board of NYMEX Holdings, Inc. until our acquisition in 2008. He also served as a director of Liquid Holdings Group, Inc. from 2012 to 2016. As a retired General Partner of Goldman Sachs, Mr. Suskind brings invaluable experience as a leader in the international metals derivatives business. While he was at Goldman Sachs, he led a team responsible for educating producers and consumers on the benefits of using futures as their pricing medium. Under his leadership, Goldman Sachs worked closely with the CFTC on developing hedging exemptions and went on to build the industry's largest precious metal arbitrage business. He is a recipient of a distinguished achievement award from the International Precious Metals Institute and was inducted into the Futures Industry Association Hall of Fame in 2005. Mr. Suskind has served as Chair of our risk committee since its inception in 2014 and brings with him his risk management experience from his role at Goldman Sachs and from his service as Vice Chairman of the Board of Bridge Bancorp, Inc. (now Dime Community Bancshares, Inc. following its merger), where he chaired the risk, compensation and governance committees. Through his external public company directorships, he also has gained experience in corporate governance practices. | |||
Ms. Lucas has served as the Sloan Distinguished Professor of Finance at the MIT Sloan School of Management since 2011 and as the Director of the MIT Golub Center for Finance and Policy from 2012. Her current research focuses on government financial institutions and financial policy, and she teaches on futures and options, and fixed income securities and derivatives. She serves on an advisory board for the Urban Institute. She is a trustee of the NBER pension plans, an associate editor for the Annual Review of Financial Economics and a member of the Shadow Open Market Committee. Ms. Lucas is currently a visiting scholar at the International Monetary Fund. Previous appointments include assistant and associate director at the Congressional Budget Office; professor at Northwestern University's Kellogg School; chief economist at the Congressional Budget Office; and senior staff economist at the Council of Economic Advisers. She serves on the board of P/E Investments, a privately held company, and of NatureServe, a non-profit company. She has been an independent director on several corporate and non-profit boards, including the Federal Home Loan Bank of Chicago. Ms. Lucas brings her tenured career as a leading business school academic and an innovative leader in the public sector. Her current research focuses on applying the principles of financial economics to evaluating the costs and risks of governments' financial investments and activities. Her academic publications cover a wide range of topics, including the effect of idiosyncratic risk on asset prices and portfolio choice, dynamic models of corporate finance, financial institutions, monetary economics and valuation of government guarantees. She held several top leadership roles at the Congressional Budget Office, and developed strategies for the analysis of the costs and risks of federal credit and guarantee activities. She has testified before the U.S. Congress on Fannie Mae and Freddie Mac, student loans, and strategically important financial institutions. | |||
Ms. Seifu has served as Director, Legal at Google LLC since November 2022 where she manages a team of lawyers supporting products and systems that enable Google services, such as privacy and data protection, content and child safety, user experience, customer support, GenAI tools, and support of Google's internal business functions. She has been an attorney at Google since April 2014 and served as the first acting Chief of Staff for the Legal Department and lead counsel to Google's Chief Information Officer and their organization. Prior to joining Google, Ms. Seifu was a Corporate Associate at Morrison & Foerster LLP from 2013 to 2014, where she focused on mergers and acquisitions and provided corporate governance guidance for public company boards and special committees. Ms. Seifu worked from 2008 to 2013 as a Corporate Associate at Davis Polk & Wardwell LLP, where she focused on mergers and acquisitions, investments, and various other corporate transactions. She also advised clients on regulatory compliance, securities law reporting, and corporate governance matters. Immediately following graduation from Yale Law School, Ms. Seifu served as a law clerk to the Honorable George B. Daniels of the Southern District of New York. Ms. Seifu's responsibilities at Google have included counsel on privacy and security matters, including matters related to Google's systems, assessments of vendor systems and implementation of controls to minimize security and privacy risks. She has also advised a number of internal teams on technology matters relating to systems safeguards, including mitigating risk related to new system integrations, access controls and contractual and procedural requirements designed to ensure third party compliance with Google’s security standards. Additionally, in her previous role as the first Chief of Staff for the Google Legal Department, Ms. Seifu was responsible for implementing strategy for the global organization and establishing processes to effectively manage the legal team. | |||
Mr. Kaye served as Interim CFO and Treasurer of HealthEast Care System from 2013 to 2014. Prior to joining HealthEast, Mr. Kaye spent 35 years with Ernst & Young LLP, from which he retired in 2012. Throughout his time at Ernst & Young, where he was an audit partner for 25 years, Mr. Kaye enjoyed a track record of increasing leadership and responsibilities, including serving as the New England Managing Partner and the Midwest Managing Partner of Assurance. Mr. Kaye serves on the compensation committee of Alliance Bernstein and on the audit (Chair) and nomination and governance committee (Chair) committees of Equitable Holdings, Inc. (formerly AXA Equitable Holdings). He served as a director of Ferrellgas Partners LP (2012 to 2015). Mr. Kaye is a CPA and NACD Board Leadership Fellow. Mr. Kaye is an audit committee financial expert with broad boardroom, financial services and operations experience. He has served on three other public company boards and several not-for-profit entities. His public company experience includes audit committee and nominating and corporate governance chairmanships, as well as audit, compensation, executive, finance and risk committee participation. Through his years at Ernst & Young (serving primarily as an audit partner in the financial services industry), he brings significant GAAP/SEC accounting and reporting, and regulatory risk management and compliance experience. This expertise includes technological controls and testing as they relate to internal controls over financial reporting. Mr. Kaye gained significant leadership and operations experience by heading various Ernst and Young business units over ten years, and acting as interim CFO and Treasurer for a hospital system. | |||
Mr. Carey served as our Vice Chairman from 2007 to 2010 in connection with our merger with CBOT Holdings, Inc. Prior to our merger, Mr. Carey served as Chairman of CBOT since 2003, as Vice Chairman from 2000 to 2002, as First Vice Chairman during 1993 and 1994 and as a board member of CBOT from 1997 to 1999 and from 1990 to 1992. Mr. Carey was an owner of HC Technologies LLC until its sale in 2023. He has been a member of CBOT since 1978 and was a member of the MidAmerica Commodity Exchange from 1976 to 1978. Mr. Carey previously served on the board of CBOT Holdings, Inc. until our merger in 2007. Mr. Carey serves as Chairman of the CME Group Foundation and is a member of our Agricultural Markets Advisory Council. Mr. Carey brings to the board his long-time experience in the derivatives industry through his prior service as Chairman and Vice Chairman of CBOT and through his tenured trading career. Also, in his role as Chairman of CBOT, Mr. Carey served as an advocate for the company in the industry and with regulators and the government. Mr. Carey, through his trading activity, has familiarity with many of our customer-facing systems and controls. He also served as our board representative on BM&FBovespa (now B3), from 2012 to 2017, one of the main financial market infrastructure companies in the world and headquartered in Brazil, and has also provided valuable assistance with respect to the development of our soybean futures complex with a focus on the Latin American market. | |||
Mr. Durkin has served as a member of our board since May 2020. Mr. Durkin served as an advisor to our CEO from May 2020 through September 2021. Formerly, Mr. Durkin served as President of CME Group from 2016, overseeing the company's Technology, Global Operations, International and Data Services businesses. Mr. Durkin previously served as our Chief Commercial Officer since 2014 and as Chief Operating Officer since 2007. As part of his responsibilities, he led the global integrations following CME's merger with CBOT in 2007 and CME Group's acquisition of NYMEX in 2008. Before joining CME Group, Mr. Durkin served as Executive Vice President and Chief Operating Officer of the CBOT. Prior to that role, he was in charge of CBOT's Office of Investigations and Audits. His career with both CME Group and CBOT has spanned more than 30 years. He previously served as a member of the COMEX Governors Committee and the CFTC's Technology Advisory Committee and Energy and Environmental Markets Advisory Committee. Mr. Durkin serves on the Board of Advisors for Misericordia and on the Board of Trustees for Lewis University. Mr. Durkin has been involved in our industry for more than 30 years. He served as CME Group’s President, and Chief Regulatory Officer and Administrator of Investigations at CBOT, overseeing all aspects of market regulation and surveillance as well as regulatory functions. During his tenure at CBOT, he was the primary liaison to U.S. and foreign regulators. Mr. Durkin's responsibilities also included oversight of CBOT’s outsourcing of clearing. In his career at CME Group, he oversaw our International, Planning and Execution, Data Services, Optimization Services, Cash Markets, Client Development & Research, Products & Services and Marketing functions. Through his oversight responsibility of our technology and trading operations, which functions are highly regulated by the CFTC and are subject to testing and system safeguards requirements, Mr. Durkin has gained experience with risk, compliance, monitoring and the reporting aspects of key control functions. Mr. Durkin also previously served as a member of the company's Crisis Management Team, which is the chief decision management body during a major disruption to our normal business operations. His career also included prior service on the boards of directors of Bursa Malaysia Derivatives Berhad and its clearing house, Bursa Malaysia Derivatives Clearing Berhad, in connection with one of our former strategic investments and commercial arrangements. |
Name and
Principal Position
1
|
Year | Salary |
Stock
Awards
2
|
Non-Equity Incentive Plan Compensation
3
|
Change in Pension Value and Non-Qualified Deferred Compensation Earnings
4
|
All Other Compensation
5
|
Total | ||||||||||||||||||||||
Terrence A. Duffy
Chairman and Chief Executive Officer
6
|
2024 | $ | 2,000,000 | $ | 13,512,333 | $ | 7,452,800 | $ | 58,832 | $ | 921,624 | $ | 23,945,589 | ||||||||||||||||
2023 | 2,000,000 | 12,594,380 | 7,907,600 | 55,146 | 910,874 | 23,468,000 | |||||||||||||||||||||||
2022 | 2,000,000 | 12,530,269 | 7,770,711 | 36,092 | 606,005 | 22,943,077 | |||||||||||||||||||||||
Lynne C. Fitzpatrick
President and Chief Financial Officer
7
|
2024 | 559,615 | 1,773,691 | 1,014,369 | 8,718 | 86,872 | 3,443,265 | ||||||||||||||||||||||
2023 | 400,000 | 1,259,417 | 786,959 | 48,547 | 64,817 | 2,559,740 | |||||||||||||||||||||||
Derek L. Sammann
Global Head of Commodities Markets
8
|
2024 | 525,000 | 1,773,691 | 978,180 | 30,234 | 126,399 | 3,433,504 | ||||||||||||||||||||||
2023 | 525,000 | 1,653,148 | 1,037,873 | 64,365 | 131,655 | 3,412,041 | |||||||||||||||||||||||
Julie M. Winkler
Chief Commercial Officer
9
|
2024 | 525,000 | 1,773,691 | 978,180 | 24,015 | 114,220 | 3,415,106 | ||||||||||||||||||||||
Sunil K. Cutinho
Chief Information Officer
|
2024 | 525,000 | 1,773,691 | 978,180 | 20,146 | 114,220 | 3,411,237 | ||||||||||||||||||||||
2023 | 525,000 | 1,653,148 | 1,037,873 | 64,541 | 114,473 | 3,395,035 | |||||||||||||||||||||||
2022 | 525,000 | 1,644,595 | 1,026,035 | — | 89,693 | 3,285,323 |
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 |
---|---|---|---|
DUFFY TERRENCE A | - | 94,557 | 0 |
Hobert William W | - | 85,719 | 40,000 |
Durkin Bryan T | - | 55,142 | 0 |
DUFFY TERRENCE A | - | 53,205 | 0 |
SIEGEL HOWARD J | - | 46,912 | 21,873 |
Holzrichter Julie | - | 40,437 | 0 |
GERDES LARRY G | - | 36,651 | 0 |
Holzrichter Julie | - | 31,990 | 0 |
Piell Hilda Harris | - | 30,900 | 0 |
Piell Hilda Harris | - | 27,046 | 0 |
Winkler Julie | - | 25,373 | 0 |
GEPSMAN MARTIN J | - | 25,067 | 0 |
Tobin Jack J | - | 23,739 | 0 |
Cutinho Sunil | - | 23,206 | 0 |
Winkler Julie | - | 21,885 | 0 |
Vroman Ken | - | 14,993 | 0 |
Fitzpatrick Lynne | - | 14,015 | 0 |
GLICKMAN DANIEL R | - | 14,008 | 2,100 |
Bitsberger Timothy S. | - | 10,589 | 0 |
Sammann Derek | - | 9,694 | 12,239 |
Sammann Derek | - | 9,417 | 8,336 |
Sprague Suzanne | - | 8,036 | 0 |
McCourt Timothy Francis | - | 7,275 | 0 |
Sprague Suzanne | - | 6,972 | 0 |
Marcus Jonathan L | - | 6,708 | 0 |
Kaye Daniel G | - | 3,668 | 0 |
Lucas Deborah J | - | 3,356 | 0 |
Lockett Phyllis M | - | 3,108 | 0 |
Suskind Dennis | - | 2,915 | 0 |
Marcus Jonathan L | - | 2,636 | 0 |
SHEPARD WILLIAM R | - | 2,443 | 257,061 |
SAVAGE TERRY L | - | 0 | 17,441 |
Cook Elizabeth A | - | 0 | 20 |