Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


$ in millions, except per share amounts	December 31, 2023		September 30, 2023
Assets:
Cash and cash equivalents	$	10,206	$	9,313
Assets segregated for regulatory purposes and restricted cash	3,731		3,235
Collateralized agreements	454		418
Financial instruments, at fair value:
Trading assets ($1,019 and $1,062 pledged as collateral)	1,103		1,187
Available-for-sale securities ($20 and $22 pledged as collateral)	9,198		9,181
Derivative assets	195		265
Other investments ($7 and $7 pledged as collateral)	310		306
Brokerage client receivables, net	2,382		2,525
Other receivables, net	1,580		1,608
Bank loans, net	44,182		43,775
Loans to financial advisors, net	1,184		1,136
Deferred income taxes, net	637		711
Goodwill and identifiable intangible assets, net	1,908		1,907
Other assets	3,060		2,793
Total assets	$	80,130	$	78,360

Liabilities and shareholders’ equity:
Bank deposits	$	55,393	$	54,199
Collateralized financings	516		337
Financial instrument liabilities, at fair value:
Trading liabilities	794		716
Derivative liabilities	310		490
Brokerage client payables	5,793		5,447
Accrued compensation, commissions and benefits	1,496		1,914
Other payables	1,909		1,931
Other borrowings	1,099		1,100
Senior notes payable	2,039		2,039
Total liabilities	69,349		68,173
Commitments and contingencies (see Note 15)
Shareholders’ equity
Preferred stock	79		79
Common stock; $.01 par value; 650,000,000 shares authorized; 249,682,751 shares issued and 208,665,962 shares outstanding as of December 31, 2023; 248,728,805 shares issued and 208,769,095 shares outstanding as of September 30, 2023	2		2
Additional paid-in capital	3,158		3,143
Retained earnings	10,609		10,213
Treasury stock, at cost; 41,016,789 and 39,959,710 common shares as of December 31, 2023 and September 30, 2023, respectively	(2,365)		(2,252)
Accumulated other comprehensive loss	(693)		(971)
Total equity attributable to Raymond James Financial, Inc.	10,790		10,214
Noncontrolling interests	(9)		(27)
Total shareholders’ equity	10,781		10,187
Total liabilities and shareholders’ equity	$	80,130	$	78,360

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)


	Three months ended December 31,
in millions, except per share amounts		2023		2022
Revenues:
Asset management and related administrative fees		$	1,407	$	1,242
Brokerage revenues:
Securities commissions		383		352
Principal transactions		139		132
Total brokerage revenues		522		484
Account and service fees		319		289
Investment banking		181		141
Interest income		1,053		827
Other		38		44
Total revenues		3,520		3,027
Interest expense		(507)		(241)
Net revenues		3,013		2,786
Non-interest expenses:
Compensation, commissions and benefits		1,921		1,736
Non-compensation expenses:
Communications and information processing		150		139
Occupancy and equipment		72		66
Business development		61		56
Investment sub-advisory fees		40		34
Professional fees		32		32
Bank loan provision for credit losses		12		14


Other		95		57
Total non-compensation expenses		462		398
Total non-interest expenses		2,383		2,134
Pre-tax income		630		652
Provision for income taxes		132		143
Net income		498		509
Preferred stock dividends		1		2
Net income available to common shareholders		$	497	$	507

Earnings per common share – basic		$	2.38	$	2.36
Earnings per common share – diluted		$	2.32	$	2.30
Weighted-average common shares outstanding – basic		208.6		214.7
Weighted-average common and common equivalent shares outstanding – diluted		213.8		220.4

Net income		$	498	$	509
Other comprehensive income/(loss), net of tax:
Available-for-sale securities		270		47
Currency translations, net of the impact of net investment hedges		29		46
Cash flow hedges		(21)		(2)
Total other comprehensive income, net of tax		278		91
Total comprehensive income		$	776	$	600

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)


	Three months ended December 31,
$ in millions, except per share amounts	2023		2022
Preferred stock:
Balance beginning of period	$	79	$	120

Share issuances	—		—

Balance end of period	79		120

Common stock, par value $.01 per share:
Balance beginning of period	2		2
Share issuances	—		—
Balance end of period	2		2

Additional paid-in capital:
Balance beginning of period	3,143		2,987


Employee stock purchases	8		7
Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures	(82)		(99)
Share-based compensation amortization	89		80
Balance end of period	3,158		2,975

Retained earnings:
Balance beginning of period	10,213		8,843
Net income attributable to Raymond James Financial, Inc.	498		509
Common and preferred stock cash dividends declared (see Note 16)	(102)		(98)



Balance end of period	10,609		9,254

Treasury stock:
Balance beginning of period	(2,252)		(1,512)
Purchases/surrenders	(159)		(147)
Reissuances due to vesting of restricted stock units and exercise of stock options	46		55
Balance end of period	(2,365)		(1,604)

Accumulated other comprehensive loss:
Balance beginning of period	(971)		(982)
Other comprehensive income, net of tax	278		91

Balance end of period	(693)		(891)
Total equity attributable to Raymond James Financial, Inc.	$	10,790	$	9,856

Noncontrolling interests:
Balance beginning of period	$	(27)	$	(26)

Consolidations	18		—



Balance end of period	(9)		(26)
Total shareholders’ equity	$	10,781	$	9,830

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Three months ended December 31,
$ in millions	2023		2022
Cash flows from operating activities:
Net income	$	498	$	509
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization	42		40
Deferred income taxes, net	(9)		25
Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments	(12)		(11)
Provisions for credit losses and legal and regulatory matters, net	7		21
Share-based compensation expense	90		81
Unrealized gain on company-owned life insurance policies, net of expenses	(87)		(48)

Other	(8)		(10)
Net change in:

Collateralized agreements, net of collateralized financings	143		97
Loans (provided to) financial advisors, net of repayments	(54)		25
Brokerage client receivables and other receivables, net	304		477
Trading instruments, net	194		127
Derivative instruments, net	(166)		(18)
Other assets	(40)		8
Brokerage client payables and other payables	161		(3,882)
Accrued compensation, commissions and benefits	(423)		(511)
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale	(97)		(66)
Net cash provided by/(used in) operating activities	543		(3,136)

Cash flows from investing activities:
Increase in bank loans, net	(405)		(826)
Proceeds from sales of loans held for investment	76		45
Purchases of available-for-sale securities	(51)		(153)
Available-for-sale securities maturations, repayments and redemptions	295		326


Additions to property and equipment	(50)		(27)



Investment in solar tax credit equity investment	(15)		—

Other investing activities, net	(26)		(31)
Net cash used in investing activities	(176)		(666)

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Index


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Three months ended December 31,
$ in millions	2023		2022
Cash flows from financing activities:


Increase in bank deposits	1,194		622
Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements	(199)		(189)
Dividends on common and preferred stock	(97)		(81)
Exercise of stock options and employee stock purchases	10		11

Proceeds from Federal Home Loan Bank advances	750		650
Repayments of Federal Home Loan Bank advances and other borrowed funds	(750)		(791)
Other financing, net	(1)		(1)
Net cash provided by financing activities	907		221

Currency adjustment:
Effect of exchange rate changes on cash and cash equivalents, including those segregated for regulatory purposes	115		215
Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash	1,389		(3,366)
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year	12,548		14,659
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period	$	13,937	$	11,293

Cash and cash equivalents	$	10,206	$	6,177
Cash and cash equivalents segregated for regulatory purposes and restricted cash	3,731		5,116
Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period	$	13,937	$	11,293

Supplemental disclosures of cash flow information:
Cash paid for interest	$	499	$	216
Cash paid for income taxes, net	$	24	$	13
Cash outflows for lease liabilities	$	30	$	31
Non-cash right-of-use assets recorded for new and modified leases	$	17	$	13

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 31, 2023

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

Organization

Raymond James Financial, Inc. (“RJF” or the “firm”) is a financial holding company which, together with its subsidiaries, is engaged in various financial services activities, including providing investment management services to retail and institutional clients, merger & acquisition and advisory services, the underwriting, distribution, trading and brokerage of equity and debt securities, and the sale of mutual funds and other investment products. The firm also provides corporate and retail banking services and trust services. As used herein, the terms “our,” “we,” or “us” refer to RJF and/or one or more of its subsidiaries.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100%-owned subsidiaries. In addition, we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 of our Annual Report on Form 10-K (“2023 Form 10-K”) for the year ended September 30, 2023, as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 9 of this Quarterly Report on Form 10-Q (“Form 10-Q”). When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation.

Accounting estimates and assumptions

Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) but is not required for interim reporting purposes has been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary for a fair presentation of our consolidated financial position and results of operations for the periods presented.

The nature of our business is such that the results of any interim period are not necessarily indicative of results for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and Notes thereto included in our 2023 Form 10-K. To prepare condensed consolidated financial statements in accordance with GAAP, we must make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates and could have a material impact on the condensed consolidated financial statements.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 2 – UPDATE OF SIGNIFICANT ACCOUNTING POLICIES

A summary of our significant accounting policies is included in Note 2 of our 2023 Form 10-K. During the three months ended December 31, 2023, there were no significant changes to our significant accounting policies other than the accounting policies adopted or modified as part of our implementation of new or amended accounting guidance, as noted in the following sections.

Accounting guidance adopted in fiscal 2024

In March 2022, the Financial Accounting Standards Board (“FASB”) issued new guidance related to troubled debt restructurings (“TDRs”) and disclosures regarding write-offs of financing receivables (ASU 2022-02), amending guidance related to the measurement of credit losses on financial instruments (ASU 2016-13). The update eliminates the requirement to use a discounted cash flow approach to measure the allowance for credit losses for TDRs and instead allows for the use of a current expected credit loss (“CECL”) approach for all loans. Under a CECL approach, the impact of loan modifications and the subsequent performance of modified loans, including defaults, is reflected in the historical loss data used to calculate expected lifetime credit losses. In addition, the update requires new disclosures about modifications granted to borrowers experiencing financial difficulty in the form of principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, or a combination of these modifications. The update also requires new disclosures for the financial effects of these modifications and for loan performance in the twelve months following the modification, and also requires disclosure of current period gross charge-offs by year of origination. We adopted this guidance on a prospective basis as of October 1, 2023, which did not have a material impact on our financial position or results of operations. Refer to Note 7 for additional disclosures required by this guidance and changes to our accounting policies as a result of this adoption. See Note 2 of our 2023 Form 10-K for a discussion of our accounting policies related to our nonperforming assets and allowance for credit losses.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 3 – FAIR VALUE

Our “Financial instruments” and “Financial instrument liabilities” on our Condensed Consolidated Statements of Financial Condition are recorded at fair value. See Notes 2 and 4 of our 2023 Form 10-K for further information about such instruments and our significant accounting policies related to fair value. The following tables present assets and liabilities measured at fair value on a recurring basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Condensed Consolidated Statements of Financial Condition. See Note 5 for additional information.


$ in millions	Level 1		Level 2		Level 3		Netting adjustments		Balance as of December 31, 2023
Assets at fair value on a recurring basis:

Trading assets:
Municipal and provincial obligations	$	—	$	191	$	—	$	—	$	191
Corporate obligations	22		640		—		—		662
Government and agency obligations	44		69		—		—		113
Agency mortgage-backed securities (“MBS”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABS”)	—		93		—		—		93
Non-agency CMOs and ABS	—		9		—		—		9
Total debt securities	66		1,002		—		—		1,068
Equity securities	14		2		—		—		16
Brokered certificates of deposit	—		18		—		—		18
Other	—		—		1		—		1
Total trading assets	80		1,022		1		—		1,103
Available-for-sale securities (1)	1,149		8,049		—		—		9,198

Derivative assets - interest rate	8		375		—		(188)		195






All other investments:
Government and agency obligations (2)	72		—		—		—		72
Other	106		2		29		—		137
Total all other investments	178		2		29		—		209
Other assets - client-owned fractional shares	110		—		—		—		110
Subtotal	1,525		9,448		30		(188)		10,815
Other investments - private equity - measured at net asset value (“NAV”)									101
Total assets at fair value on a recurring basis	$	1,525	$	9,448	$	30	$	(188)	$	10,916

Liabilities at fair value on a recurring basis:
Trading liabilities:
Municipal and provincial obligations	$	8	$	—	$	—	$	—	$	8
Corporate obligations	—		614		—		—		614
Government and agency obligations	127		1		—		—		128

Total debt securities	135		615		—		—		750
Equity securities	44		—		—		—		44

Total trading liabilities	179		615		—		—		794
Derivative liabilities:
Interest rate	9		400		—		(114)		295


Foreign exchange	—		15		—		—		15

Total derivative liabilities	9		415		—		(114)		310
Other payables - repurchase liabilities related to client-owned fractional shares	110		—		—		—		110
Total liabilities at fair value on a recurring basis	$	298	$	1,030	$	—	$	(114)	$	1,214


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index


$ in millions	Level 1		Level 2		Level 3		Netting adjustments		Balance as of September 30, 2023
Assets at fair value on a recurring basis:

Trading assets:
Municipal and provincial obligations	$	—	$	239	$	—	$	—	$	239
Corporate obligations	22		620		—		—		642
Government and agency obligations	24		117		—		—		141
Agency MBS, CMOs, and ABS	—		35		—		—		35
Non-agency CMOs and ABS	—		68		—		—		68
Total debt securities	46		1,079		—		—		1,125
Equity securities	20		2		—		—		22
Brokered certificates of deposit	—		36		—		—		36
Other	—		—		4		—		4
Total trading assets	66		1,117		4		—		1,187
Available-for-sale securities (1)	1,240		7,941		—		—		9,181
Derivative assets:
Interest rate	14		503		—		(261)		256


Foreign exchange	—		9		—		—		9
Total derivative assets	14		512		—		(261)		265

All other investments:
Government and agency obligations (2)	71		—		—		—		71
Other	102		2		30		—		134
Total all other investments	173		2		30		—		205
Other assets - client-owned fractional shares	98		—		—		—		98
Subtotal	1,591		9,572		34		(261)		10,936
Other investments - private equity - measured at NAV									101
Total assets at fair value on a recurring basis	$	1,591	$	9,572	$	34	$	(261)	$	11,037

Liabilities at fair value on a recurring basis:
Trading liabilities:
Municipal and provincial obligations	$	10	$	—	$	—	$	—	$	10
Corporate obligations	—		514		—		—		514
Government and agency obligations	161		1		—		—		162

Total debt securities	171		515		—		—		686
Equity securities	30		—		—		—		30

Total trading liabilities	201		515		—		—		716
Derivative liabilities:
Interest rate	13		563		—		(88)		488


Foreign exchange	—		2		—		—		2

Total derivative liabilities	13		565		—		(88)		490
Other payables - repurchase liabilities related to client-owned fractional shares	98		—		—		—		98
Total liabilities at fair value on a recurring basis	$	312	$	1,080	$	—	$	(88)	$	1,304

(1)Our available-for-sale securities primarily consist of agency MBS, agency CMOs, and U.S. Treasury securities (“U.S. Treasuries”). See Note 4 for further information.

(2)These assets are primarily comprised of U.S. Treasuries purchased to meet certain deposit requirements with clearing organizations.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Level 3 recurring fair value measurements

The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. In the following tables, gains/(losses) on trading and derivative instruments are reported in “Principal transactions” and gains/(losses) on other investments are reported in “Other” revenues on our Condensed Consolidated Statements of Income and Comprehensive Income.


Three months ended December 31, 2023 Level 3 instruments at fair value
	Financial assets				Financial liabilities
	Trading assets		Other investments			Derivative liabilities
$ in millions	Other		All other			Other
Fair value beginning of period	$	4	$	30		$	—
Total gains/(losses) included in earnings	—		(1)			—
Purchases and contributions	12		—			—
Sales and distributions	(15)		—			—
Transfers:
Into Level 3	—		—			—
Out of Level 3	—		—			—
Fair value end of period	$	1	$	29		$	—
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period	$	—	$	(1)		$	—


Three months ended December 31, 2022 Level 3 instruments at fair value
	Financial assets				Financial liabilities
	Trading assets		Other investments			Derivative liabilities
$ in millions	Other		All other			Other
Fair value beginning of period	$	1	$	29		$	(3)
Total gains/(losses) included in earnings	—		1			(1)
Purchases and contributions	25		—			—
Sales and distributions	(20)		—			—
Transfers:
Into Level 3	—		—			—
Out of Level 3	—		—			—
Fair value end of period	$	6	$	30		$	(4)
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period	$	(1)	$	1		$	(1)

As of both December 31, 2023 and September 30, 2023, 14% of our assets and 2% of our liabilities were measured at fair value on a recurring basis. As of both December 31, 2023 and September 30, 2023, Level 3 assets represented less than 1% of our assets measured at fair value on a recurring basis.

Investments in private equity measured at net asset value per share

As more fully described in Note 2 of our 2023 Form 10-K, as a practical expedient, we utilize NAV or its equivalent to determine the recorded value of a portion of our private equity investments portfolio. We utilize NAV when the fund investment does not have a readily determinable fair value and the NAV of the fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value.

Our private equity portfolio as of December 31, 2023 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments. Our investments cannot be redeemed directly with the funds. Our investments are monetized through the liquidation of underlying assets of fund investments, the timing of which is uncertain.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

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


$ in millions	Recorded value		Unfunded commitment
December 31, 2023
Private equity investments measured at NAV	$	101	$	25
Private equity investments not measured at NAV	7
Total private equity investments	$	108

September 30, 2023
Private equity investments measured at NAV	$	101	$	29
Private equity investments not measured at NAV	7
Total private equity investments	$	108

Financial instruments measured at fair value on a nonrecurring basis

The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument.


$ in millions	Level 2		Level 3		Total fair value		Valuation technique(s)	Unobservable input	Range (weighted-average)
December 31, 2023
Bank loans:
Residential mortgage loans	$	2	$	8	$	10	Collateral or discounted cash flow (1)	Prepayment rate	7 yrs. - 12 yrs. (10.3 yrs.)
Corporate loans	$	—	$	104	$	104	Collateral or discounted cash flow (1)	Recovery rate	3% - 63% (49%)
Loans held for sale	$	30	$	—	$	30	N/A	N/A	N/A


September 30, 2023
Bank loans:
Residential mortgage loans	$	2	$	8	$	10	Collateral or discounted cash flow (1)	Prepayment rate	7 yrs. - 12 yrs. (10.3 yrs.)
Corporate loans	$	—	$	84	$	84	Collateral or discounted cash flow (1)	Recovery rate	22% - 65% (53%)
Loans held for sale	$	2	$	—	$	2	N/A	N/A	N/A

(1)The valuation techniques used to estimate the fair values are based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent. Unobservable inputs used in the collateral valuation technique are not meaningful and unobservable inputs used in the discounted cash flow valuation technique are presented in the table.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Financial instruments not recorded at fair value

Many, but not all, of the financial instruments we hold were recorded at fair value on the Condensed Consolidated Statements of Financial Condition. The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value on the Condensed Consolidated Statements of Financial Condition at December 31, 2023 and September 30, 2023. This table excludes financial instruments that are carried at amounts which approximate fair value. See Note 4 of our 2023 Form 10-K for a discussion of our financial instruments that are not recorded at fair value.


$ in millions	Level 2		Level 3		Total estimated fair value		Carrying amount
December 31, 2023
Financial assets:
Bank loans, net	$	181	$	43,020	$	43,201	$	44,038
Financial liabilities:
Bank deposits - certificates of deposit	$	2,882	$	—	$	2,882	$	2,885
Other borrowings - subordinated notes payable	$	95	$	—	$	95	$	99
Senior notes payable	$	1,817	$	—	$	1,817	$	2,039

September 30, 2023
Financial assets:
Bank loans, net	$	142	$	42,622	$	42,764	$	43,679
Financial liabilities:
Bank deposits - certificates of deposit	$	2,817	$	—	$	2,817	$	2,831
Other borrowings - subordinated notes payable	$	94	$	—	$	94	$	100
Senior notes payable	$	1,640	$	—	$	1,640	$	2,039


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 4 – AVAILABLE-FOR-SALE SECURITIES

See Note 2 of our 2023 Form 10-K for a discussion of our accounting policies applicable to our available-for-sale securities.

The following table details the amortized costs and fair values of our available-for-sale securities. See Note 3 for additional information regarding the fair value of available-for-sale securities.


$ in millions	Cost basis		Gross unrealized gains		Gross unrealized losses		Fair value
December 31, 2023
Agency residential MBS	$	4,665	$	2	$	(451)	$	4,216
Agency commercial MBS	1,457		—		(162)		1,295
Agency CMOs	1,407		—		(213)		1,194
Other agency obligations	694		—		(17)		677
Non-agency residential MBS	550		1		(37)		514
U.S. Treasuries	1,161		—		(12)		1,149
Corporate bonds	140		—		(5)		135
Other	18		—		—		18
Total available-for-sale securities	$	10,092	$	3	$	(897)	$	9,198

September 30, 2023
Agency residential MBS	$	4,865	$	—	$	(654)	$	4,211
Agency commercial MBS	1,464		—		(211)		1,253
Agency CMOs	1,448		—		(265)		1,183
Other agency obligations	710		—		(31)		679
Non-agency residential MBS	527		—		(64)		463
U.S. Treasuries	1,261		—		(21)		1,240
Corporate bonds	140		—		(6)		134
Other	18		—		—		18
Total available-for-sale securities	$	10,433	$	—	$	(1,252)	$	9,181

The amortized costs and fair values in the preceding table exclude $29 million and $28 million of accrued interest on available-for-sale securities as of December 31, 2023 and September 30, 2023, respectively, which was included in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition.

See Note 6 for more information regarding available-for-sale securities pledged with the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank of Atlanta (“FRB”).


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

The following table details the contractual maturities, amortized costs, fair values and current yields for our available-for-sale securities. Weighted-average yields are calculated on a taxable-equivalent basis based on estimated annual income divided by the average amortized cost of these securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. As a result, the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 4.0 years as of December 31, 2023.


	December 31, 2023
$ in millions	Within one year			After one but within five years			After five but within ten years			After ten years			Total
Agency residential MBS
Amortized cost	$	1		$	112		$	2,033		$	2,519		$	4,665
Fair value	$	1		$	108		$	1,865		$	2,242		$	4,216
Weighted-average yield	2.11		%	2.53		%	1.31		%	1.95		%	1.68		%
Agency commercial MBS
Amortized cost	$	18		$	933		$	457		$	49		$	1,457
Fair value	$	18		$	856		$	380		$	41		$	1,295
Weighted-average yield	3.45		%	1.60		%	1.20		%	1.87		%	1.51		%
Agency CMOs
Amortized cost	$	—		$	7		$	39		$	1,361		$	1,407
Fair value	$	—		$	7		$	35		$	1,152		$	1,194
Weighted-average yield	—		%	2.39		%	1.52		%	1.58		%	1.58		%
Other agency obligations
Amortized cost	$	79		$	525		$	80		$	10		$	694
Fair value	$	79		$	513		$	76		$	9		$	677
Weighted-average yield	2.08		%	3.26		%	3.43		%	3.07		%	3.15		%
Non-agency residential MBS
Amortized cost	$	—		$	—		$	—		$	550		$	550
Fair value	$	—		$	—		$	—		$	514		$	514
Weighted-average yield	—		%	—		%	—		%	4.33		%	4.33		%
U.S. Treasuries
Amortized cost	$	821		$	340		$	—		$	—		$	1,161
Fair value	$	811		$	338		$	—		$	—		$	1,149
Weighted-average yield	2.67		%	4.64		%	—		%	—		%	3.25		%
Corporate bonds
Amortized cost	$	31		$	86		$	23		$	—		$	140
Fair value	$	30		$	84		$	21		$	—		$	135
Weighted-average yield	4.73		%	5.58		%	5.02		%	—		%	5.30		%
Other
Amortized cost	$	—		$	5		$	5		$	8		$	18
Fair value	$	—		$	5		$	4		$	9		$	18
Weighted-average yield	—		%	7.39		%	5.22		%	8.32		%	7.26		%
Total available-for-sale securities
Amortized cost	$	950		$	2,008		$	2,637		$	4,497		$	10,092
Fair value	$	939		$	1,911		$	2,381		$	3,967		$	9,198
Weighted-average yield	2.70		%	2.79		%	1.39		%	2.14		%	2.13		%


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

The following table details the gross unrealized losses and fair values of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position.


	Less than 12 months				12 months or more				Total
$ in millions	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
December 31, 2023
Agency residential MBS	$	18	$	—	$	4,121	$	(451)	$	4,139	$	(451)
Agency commercial MBS	—		—		1,292		(162)		1,292		(162)
Agency CMOs	—		—		1,194		(213)		1,194		(213)
Other agency obligations	63		—		614		(17)		677		(17)
Non-agency residential MBS	17		—		430		(37)		447		(37)
U.S. Treasuries	245		—		904		(12)		1,149		(12)
Corporate bonds	15		—		81		(5)		96		(5)
Other	8		—		9		—		17		—
Total	$	366	$	—	$	8,645	$	(897)	$	9,011	$	(897)

September 30, 2023
Agency residential MBS	$	73	$	(3)	$	4,119	$	(651)	$	4,192	$	(654)
Agency commercial MBS	3		—		1,250		(211)		1,253		(211)
Agency CMOs	—		—		1,183		(265)		1,183		(265)
Other agency obligations	97		(1)		582		(30)		679		(31)
Non-agency residential MBS	62		(1)		401		(63)		463		(64)
U.S. Treasuries	120		—		995		(21)		1,115		(21)
Corporate bonds	13		—		78		(6)		91		(6)
Other	5		—		9		—		14		—
Total	$	373	$	(5)	$	8,617	$	(1,247)	$	8,990	$	(1,252)

At December 31, 2023, of the 1,066 available-for-sale securities in an unrealized loss position, 36 were in a continuous unrealized loss position for less than 12 months and 1,030 securities were in a continuous unrealized loss position for greater than 12 months.

At December 31, 2023, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of $4.60 billion and $2.77 billion, respectively, and fair values of $4.11 billion and $2.45 billion, respectively.

During the three months ended December 31, 2023 and 2022, there were no sales of available-for-sale securities.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 5 – DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES

Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” on our Condensed Consolidated Statements of Financial Condition. Cash flows related to our derivatives are included within operating activities on the Condensed Consolidated Statements of Cash Flows. The significant accounting policies governing our derivatives, including our methodologies for determining fair value, are described in Note 2 of our 2023 Form 10-K.

Derivative balances included on our financial statements

The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on our Condensed Consolidated Statements of Financial Condition, as well as collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP.


	December 31, 2023						September 30, 2023
$ in millions	Derivative assets		Derivative liabilities		Notional amount		Derivative assets		Derivative liabilities		Notional amount
Derivatives not designated as hedging instruments
Interest rate (1)	$	377	$	409	$	17,861	$	509	$	576	$	18,270

Foreign exchange	—		7		1,183		4		2		1,191
Other	—		—		1,037		—		—		608
Subtotal	377		416		20,081		513		578		20,069
Derivatives designated as hedging instruments
Interest rate	6		—		1,225		8		—		1,200
Foreign exchange	—		8		1,208		5		—		1,172
Subtotal	6		8		2,433		13		—		2,372
Total gross fair value/notional amount	383		424		$	22,514	526		578		$	22,441
Offset on the Condensed Consolidated Statements of Financial Condition
Counterparty netting	(57)		(57)				(29)		(29)
Cash collateral netting	(131)		(57)				(232)		(59)
Total amounts offset	(188)		(114)				(261)		(88)
Net amounts presented on the Condensed Consolidated Statements of Financial Condition	$	195	$	310			$	265	$	490
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
Financial instruments	(81)		—				(131)		—
Total	$	114	$	310			$	134	$	490

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

The following table details the losses included in accumulated other comprehensive loss (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These losses included any amounts reclassified from AOCI to net income during the period. See Note 16 for additional information.


	Three months ended December 31,
$ in millions	2023		2022
Interest rate (cash flow hedges)	$	(21)	$	(2)
Foreign exchange (net investment hedges)	(22)		(14)
Total losses included in AOCI, net of taxes	$	(43)	$	(16)

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three months ended December 31, 2023 and 2022. We expect to reclassify $27 million of interest expense out of AOCI and into earnings within the next 12 months. The maximum length of time over which forecasted transactions are or will be hedged is four years.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Condensed Consolidated Statements of Income and Comprehensive Income. These amounts do not include any offsetting gains/(losses) on the related hedged item.


$ in millions				Three months ended December 31,
	Location of gain/(loss)		2023			2022
Interest rate		Principal transactions/other revenues		$	1		$	6
Foreign exchange		Other revenues		$	(33)		$	(30)
Other		Principal transactions		$	—		$	(1)

Risks associated with our derivatives and related risk mitigation

Credit risk

We are exposed to credit losses primarily in the event of nonperformance by the counterparties to derivatives that are not cleared through a clearing organization. Where we are subject to credit exposure, we perform a credit evaluation of counterparties prior to entering into derivative transactions and we continue to monitor their credit standings on an ongoing basis. We may require initial margin or collateral from counterparties, generally in the form of cash or marketable securities to support certain of these obligations as established by the credit threshold specified by the agreement and/or as a result of monitoring the credit standing of the counterparties. We also enter into derivatives with clients, typically interest rate derivatives, to which either of our bank subsidiaries have provided loans. Such derivatives are generally collateralized by marketable securities or other assets of the client.

Interest rate and foreign exchange risk

We are exposed to interest rate risk related to certain of our interest rate derivatives. We are also exposed to foreign exchange risk related to our forward foreign exchange derivatives. On a daily basis, we monitor our risk exposure on our derivatives based on established sensitivity-based and foreign exchange spot limits.

Derivatives with credit-risk-related contingent features

Certain of our derivative contracts contain provisions that require our debt to maintain an investment-grade rating from one or more of the major credit rating agencies or contain provisions related to default on certain of our outstanding debt. If our debt were to fall below investment-grade or we were to default on certain of our outstanding debt, the counterparties to the derivative instruments could terminate the derivative and request immediate payment, or demand immediate and ongoing overnight collateralization on our derivative instruments in liability positions. The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that were in a liability position was $6 million as of December 31, 2023 and $3 million as of September 30, 2023.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 6 – COLLATERALIZED AGREEMENTS AND FINANCINGS

Collateralized agreements are comprised of securities purchased under agreements to resell (“reverse repurchase agreements”) and securities borrowed. Collateralized financings are comprised of securities sold under agreements to repurchase (“repurchase agreements”) and securities loaned. We enter into these transactions in order to facilitate client activities, acquire securities to cover short positions and finance certain firm activities. The significant accounting policies governing our collateralized agreements and financings are described in Note 2 of our 2023 Form 10-K.

Our reverse repurchase agreements, repurchase agreements, securities borrowing, and securities lending transactions are governed by master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the parties to the transaction. For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowed, and securities loaned because the conditions for netting as specified by GAAP are not met. Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table.


	Collateralized agreements						Collateralized financings
$ in millions	Reverse repurchase agreements		Securities borrowed		Total		Repurchase agreements		Securities loaned		Total
December 31, 2023
Gross amounts of recognized assets/liabilities	$	194	$	260	$	454	$	169	$	347	$	516
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	—		—		—		—		—		—
Net amounts included in the Condensed Consolidated Statements of Financial Condition	194		260		454		169		347		516
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	(194)		(248)		(442)		(169)		(332)		(501)
Net amounts	$	—	$	12	$	12	$	—	$	15	$	15

September 30, 2023
Gross amounts of recognized assets/liabilities	$	187	$	231	$	418	$	157	$	180	$	337
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	—		—		—		—		—		—
Net amounts included in the Condensed Consolidated Statements of Financial Condition	187		231		418		157		180		337
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	(187)		(224)		(411)		(157)		(173)		(330)
Net amounts	$	—	$	7	$	7	$	—	$	7	$	7

The total amount of collateral received under reverse repurchase agreements and the total amount of collateral posted under repurchase agreements exceeds the carrying value of these agreements on our Condensed Consolidated Statements of Financial Condition.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Repurchase agreements and securities loaned accounted for as secured borrowings

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


$ in millions	Overnight and continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
December 31, 2023
Repurchase agreements:
Government and agency obligations	$	107	$	—	$	—	$	—	$	107
Agency MBS and agency CMOs	62		—		—		—		62
Total repurchase agreements	169		—		—		—		169
Securities loaned:
Equity securities	347		—		—		—		347
Total collateralized financings	$	516	$	—	$	—	$	—	$	516

September 30, 2023
Repurchase agreements:
Government and agency obligations	$	122	$	—	$	—	$	—	$	122
Agency MBS and agency CMOs	35		—		—		—		35
Total repurchase agreements	157		—		—		—		157
Securities loaned:
Equity securities	180		—		—		—		180
Total collateralized financings	$	337	$	—	$	—	$	—	$	337

Collateral received and pledged

We receive cash and securities as collateral, primarily in connection with reverse repurchase agreements, securities borrowing agreements, derivative transactions, and client margin loans. The collateral we receive reduces our credit exposure to individual counterparties.

In many cases, we are permitted to deliver or repledge financial instruments we have received as collateral to satisfy our collateral requirements under our repurchase agreements, securities lending agreements or other secured borrowings, to satisfy deposit requirements with clearing organizations, or to otherwise meet either our or our clients’ settlement requirements.

The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described.


$ in millions	December 31, 2023		September 30, 2023
Collateral we received that was available to be delivered or repledged	$	3,230	$	3,267
Collateral that we delivered or repledged	$	1,126	$	730


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Encumbered assets

We pledge certain of our assets, primarily trading assets, to collateralize repurchase agreements or other secured borrowings, maintain lines of credit, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments. We pledge certain of our bank loans and available-for-sale securities with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed. We also pledge certain loans and available-for-sale securities with the FRB to be eligible to participate in the Federal Reserve’s discount window program and to participate in certain deposit programs. The FHLB does not have the ability to sell or repledge such securities until they are borrowed against. For additional information regarding our outstanding FHLB advances see Note 13.

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


$ in millions	December 31, 2023		September 30, 2023
Had the right to deliver or repledge	$	1,046	$	1,091
Did not have the right to deliver or repledge	$	64	$	63

Assets pledged with the FHLB and FRB:
Available-for-sale securities	$	3,947	$	3,897
Bank loans	10,396		10,166
Total assets pledged with the FHLB and FRB	$	14,343	$	14,063


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 7 – BANK LOANS, NET

Bank client receivables are comprised of loans originated or purchased by our Bank segment and include securities-based loans (“SBL”), corporate loans (commercial and industrial (“C&I”) loans, commercial real estate (“CRE”) loans, and real estate investment trust (“REIT”) loans), residential mortgage loans, and tax-exempt loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured. We segregate our loan portfolio into six loan portfolio segments: SBL, C&I, CRE, REIT, residential mortgage, and tax-exempt. See Note 2 of our 2023 Form 10-K for a discussion of accounting policies related to bank loans and the allowance for credit losses.

Loan balances in the following tables are presented at amortized cost (outstanding principal balance net of unamortized purchase discounts or premiums, unearned income, deferred origination fees and costs, and charge-offs), except for certain held for sale loans recorded at fair value. Bank loans are presented on our Condensed Consolidated Statements of Financial Condition at amortized cost (or fair value where applicable) less the allowance for credit losses (“ACL”). As it pertains to TriState Capital Bank’s loans acquired as of June 1, 2022, the amortized cost of such purchased loans reflects the fair value of the loans on the acquisition date, and as described further in Note 3 of our 2023 Form 10-K, the purchase discount on such loans is accreted to interest income over the weighted-average life of the underlying loans, which may vary based on prepayments.

The following table presents the balances for held for investment loans by portfolio segment and held for sale loans.


$ in millions	December 31, 2023			September 30, 2023
SBL	$	14,647		$	14,606
C&I loans	10,503			10,406
CRE loans	7,331			7,221
REIT loans	1,697			1,668
Residential mortgage loans	8,861			8,662
Tax-exempt loans	1,411			1,541
Total loans held for investment	44,450			44,104
Held for sale loans	211			145
Total loans held for sale and investment	44,661			44,249
Allowance for credit losses	(479)			(474)
Bank loans, net (1)	$	44,182		$	43,775

ACL as a % of total loans held for investment	1.08		%	1.07		%
Accrued interest receivable on bank loans (included in “Other receivables, net”)	$	212		$	200

(1)Bank loans, net as of December 31, 2023 and September 30, 2023 are presented net of $37 million and $52 million, respectively, of net unamortized discount, unearned income, and deferred loan fees and costs. The net unamortized discount primarily arose from the acquisition date fair value purchase discount on bank loans acquired in the TriState Capital Holdings, Inc. acquisition. See Note 3 of our 2023 Form 10-K for additional information.

See Note 6 for additional information regarding bank loans pledged with the FHLB and FRB and Note 13 for additional information regarding borrowings from the FHLB.

Held for sale loans

We originated or purchased $441 million and $802 million of loans held for sale during the three months ended December 31, 2023 and 2022, respectively. The majority of these loans were purchases of the guaranteed portions of Small Business Administration (“SBA”) loans that were initially classified as loans held for sale upon purchase and subsequently transferred to trading instruments once they had been securitized into pools. Proceeds from the sales of these loans held for sale and not securitized amounted to $102 million and $198 million during the three months ended December 31, 2023 and 2022, respectively. Net gains resulting from such sales were insignificant for each of the three months ended December 31, 2023 and 2022.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Purchases and sales of loans held for investment

The following table presents purchases and sales of loans held for investment by portfolio segment.


$ in millions	C&I loans		CRE loans		REIT loans		Residential mortgage loans		Total
Three months ended December 31, 2023
Purchases	$	206	$	—	$	—	$	45	$	251
Sales	$	119	$	—	$	—	$	—	$	119




Three months ended December 31, 2022
Purchases	$	163	$	39	$	24	$	190	$	416
Sales	$	—	$	—	$	—	$	—	$	—

Sales in the preceding table represent the recorded investment (i.e., net of charge-offs and discounts or premiums) of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. As more fully described in Note 2 of our 2023 Form 10-K, corporate loan sales generally occur as part of our credit management activities.

Past due, nonaccrual, and modified loans

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


$ in millions	30-89 days and accruing		90 days or more and accruing		Total past due and accruing		Nonaccrual with allowance		Nonaccrual with no allowance		Current and accruing		Total loans held for investment
December 31, 2023
SBL	$	7	$	—	$	7	$	—	$	—	$	14,640	$	14,647
C&I loans	3		—		3		64		—		10,436		10,503
CRE loans	—		—		—		81		12		7,238		7,331
REIT loans	—		—		—		—		—		1,697		1,697
Residential mortgage loans	5		—		5		—		7		8,849		8,861
Tax-exempt loans	—		—		—		—		—		1,411		1,411
Total loans held for investment	$	15	$	—	$	15	$	145	$	19	$	44,271	$	44,450

September 30, 2023
SBL	$	9	$	—	$	9	$	—	$	—	$	14,597	$	14,606
C&I loans	—		—		—		69		2		10,335		10,406
CRE loans	—		—		—		35		13		7,173		7,221
REIT loans	—		—		—		—		—		1,668		1,668
Residential mortgage loans	2		—		2		—		9		8,651		8,662
Tax-exempt loans	—		—		—		—		—		1,541		1,541
Total loans held for investment	$	11	$	—	$	11	$	104	$	24	$	43,965	$	44,104

The preceding table includes $87 million and $96 million at December 31, 2023 and September 30, 2023, respectively, of nonaccrual loans which were current pursuant to their contractual terms.

In the normal course of business, we may modify the original terms of a loan agreement. In certain circumstances, we may agree to modify the original terms of a loan agreement to a borrower experiencing financial difficulty, which may include a borrower in default, financial distress, bankruptcy or other circumstances. Loan modifications to borrowers experiencing financial difficulty typically involve principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (i.e., payment deferral greater than six months), or a term extension, or any combination thereof. Modified loans to borrowers experiencing financial difficulty are subject to our nonaccrual policies. Loans to borrowers experiencing financial difficulty which were modified during the three months ended December 31, 2023 were not significant.

Prior to September 30, 2023, loan modifications to borrowers experiencing financial difficulty, to the extent significant, were considered TDRs. On October 1, 2023, we adopted ASU 2022-02, which eliminated the recognition and measurement guidance for TDRs. See Note 2 for additional information about this guidance. As of September 30, 2023, TDRs were $21 million, $3 million, and $10 million for C&I loans, CRE loans and residential first mortgage loans, respectively.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both December 31, 2023 and September 30, 2023.

Collateral-dependent loans

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral. Collateral-dependent loans are recorded based upon the fair value of the collateral less the estimated selling costs. The following table presents the amortized cost of our collateral-dependent loans and the nature of the collateral.


Loan type ($ in millions)	Nature of collateral	December 31, 2023		September 30, 2023

C&I loans	Commercial real estate and other business assets	$	9	$	11
CRE loans	Office, multi-family residential, healthcare, and industrial real estate	$	146	$	47

Residential mortgage loans	Single family homes	$	4	$	5

CRE collateral dependent loans as of December 31, 2023 included two loans that were placed on nonaccrual status with an associated allowance during the three months ended December 31, 2023. The recorded investments in residential mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process were $3 million and $4 million as of December 31, 2023 and September 30, 2023, respectively.

Credit quality indicators

The credit quality of our bank loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators. These classifications are divided into three groups: Not Classified (Pass), Special Mention, and Classified or Adverse Rating (Substandard, Doubtful and Loss). These terms are defined as follows:

Pass – Loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell, of any underlying collateral and generally are performing in accordance with the contractual terms.

Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose us to sufficient risk to warrant an adverse classification.

Substandard – Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently-known facts, conditions and values.

Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on our books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. We do not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

The following tables present our held for investment bank loan portfolio by credit quality indicator. Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans.


	As of and for the three months ended December 31, 2023
	Loans by origination fiscal year
$ in millions	2024		2023		2022		2021		2020		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	31	$	47	$	19	$	82	$	36	$	74	$	14,339	$	14,628
Special mention	—		—		—		—		—		—		—		—
Substandard (1)	19		—		—		—		—		—		—		19
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	50	$	47	$	19	$	82	$	36	$	74	$	14,339	$	14,647
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



C&I loans
Risk rating:
Pass	$	138	$	732	$	1,206	$	1,067	$	877	$	3,457	$	2,784	$	10,261
Special mention	—		—		5		—		68		—		3		76
Substandard	—		—		—		29		62		59		16		166
Doubtful	—		—		—		—		—		—		—		—
Total C&I loans	$	138	$	732	$	1,211	$	1,096	$	1,007	$	3,516	$	2,803	$	10,503
Gross charge-offs	$	—	$	—	$	—	$	1	$	—	$	5	$	—	$	6



CRE loans
Risk rating:
Pass	$	131	$	1,182	$	2,317	$	1,107	$	739	$	1,411	$	255	$	7,142
Special mention	—		6		—		—		14		19		—		39
Substandard	—		—		—		5		32		113		—		150
Doubtful	—		—		—		—		—		—		—		—
Total CRE loans	$	131	$	1,188	$	2,317	$	1,112	$	785	$	1,543	$	255	$	7,331
Gross charge offs	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	2



REIT loans
Risk rating:
Pass	$	51	$	236	$	184	$	232	$	103	$	311	$	580	$	1,697
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	51	$	236	$	184	$	232	$	103	$	311	$	580	$	1,697
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Residential mortgage loans
Risk rating:
Pass	$	323	$	1,747	$	2,857	$	1,588	$	903	$	1,388	$	33	$	8,839
Special mention	—		—		2		—		—		5		—		7
Substandard	—		—		2		—		—		13		—		15
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	323	$	1,747	$	2,861	$	1,588	$	903	$	1,406	$	33	$	8,861
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Tax-exempt loans
Risk rating:
Pass	$	—	$	57	$	270	$	160	$	54	$	870	$	—	$	1,411
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	—	$	57	$	270	$	160	$	54	$	870	$	—	$	1,411
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)As of December 31, 2023, these balances relate to loans which were collateralized by private securities or other financial instruments with a limited trading market.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index


	September 30, 2023
	Loans by origination fiscal year
$ in millions	2023		2022		2021		2020		2019		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	74	$	18	$	83	$	40	$	15	$	59	$	14,293	$	14,582
Special mention	—		—		—		—		—		—		—		—
Substandard (1)	—		—		—		—		—		—		24		24
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	74	$	18	$	83	$	40	$	15	$	59	$	14,317	$	14,606




C&I loans
Risk rating:
Pass	$	672	$	1,148	$	1,091	$	965	$	1,020	$	2,675	$	2,564	$	10,135
Special mention	—		5		29		69		—		—		4		107
Substandard	—		—		—		62		17		65		17		161
Doubtful	—		—		—		—		—		3		—		3
Total C&I loans	$	672	$	1,153	$	1,120	$	1,096	$	1,037	$	2,743	$	2,585	$	10,406




CRE loans
Risk rating:
Pass	$	1,130	$	2,344	$	1,115	$	766	$	604	$	845	$	220	$	7,024
Special mention	7		—		—		14		5		55		—		81
Substandard	—		—		5		32		12		67		—		116
Doubtful	—		—		—		—		—		—		—		—
Total CRE loans	$	1,137	$	2,344	$	1,120	$	812	$	621	$	967	$	220	$	7,221




REIT loans
Risk rating:
Pass	$	258	$	200	$	214	$	101	$	172	$	176	$	547	$	1,668
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	258	$	200	$	214	$	101	$	172	$	176	$	547	$	1,668



Residential mortgage loans
Risk rating:
Pass	$	1,765	$	2,889	$	1,607	$	919	$	433	$	992	$	31	$	8,636
Special mention	—		—		2		—		2		5		—		9
Substandard	—		2		—		1		—		14		—		17
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	1,765	$	2,891	$	1,609	$	920	$	435	$	1,011	$	31	$	8,662




Tax-exempt loans
Risk rating:
Pass	$	147	$	279	$	161	$	54	$	97	$	803	$	—	$	1,541
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	147	$	279	$	161	$	54	$	97	$	803	$	—	$	1,541

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


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

We also monitor the credit quality of the residential mortgage loan portfolio utilizing FICO scores and loan-to-value (“LTV”) ratios. A FICO score measures a borrower’s creditworthiness by considering factors such as payment and credit history. LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan. The following table presents the held for investment residential mortgage loan portfolio by LTV ratio at origination and by FICO score.


	December 31, 2023
	Loans by origination fiscal year
$ in millions	2024		2023		2022		2021		2020		Prior		Revolving loans		Total
FICO score:
Below 600	$	—	$	4	$	11	$	3	$	3	$	16	$	—	$	37
600 - 699	23		83		102		65		33		80		3		389
700 - 799	240		1,280		1,581		867		525		770		22		5,285
800 +	60		376		1,167		651		341		537		7		3,139
FICO score not available	—		4		—		2		1		3		1		11
Total	$	323	$	1,747	$	2,861	$	1,588	$	903	$	1,406	$	33	$	8,861

LTV ratio:
Below 80%	$	232	$	1,230	$	2,196	$	1,241	$	703	$	1,073	$	32	$	6,707
80%+	91		517		665		347		200		333		1		2,154
Total	$	323	$	1,747	$	2,861	$	1,588	$	903	$	1,406	$	33	$	8,861


	September 30, 2023
	Loans by origination fiscal year
$ in millions	2022		2021		2020		2019		2018		Prior		Revolving loans		Total
FICO score:
Below 600	$	7	$	1	$	3	$	2	$	3	$	55	$	—	$	71
600 - 699	99		154		106		83		30		79		4		555
700 - 799	1,381		2,327		1,218		666		320		609		20		6,541
800 +	274		407		279		168		77		265		6		1,476
FICO score not available	4		2		3		1		5		3		1		19
Total	$	1,765	$	2,891	$	1,609	$	920	$	435	$	1,011	$	31	$	8,662

LTV ratio:
Below 80%	$	1,244	$	2,218	$	1,257	$	716	$	323	$	780	$	29	$	6,567
80%+	521		673		352		204		112		231		2		2,095
Total	$	1,765	$	2,891	$	1,609	$	920	$	435	$	1,011	$	31	$	8,662


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Allowance for credit losses

The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment.


$ in millions	SBL			C&I loans			CRE loans			REIT loans			Residential mortgage loans			Tax-exempt loans			Total
Three months ended December 31, 2023














Balance at beginning of period	$	7		$	214		$	161		$	16		$	74		$	2		$	474


Provision/(benefit) for credit losses	—			3			14			1			(6)			—			12

Net (charge-offs)/recoveries:
Charge-offs	—			(6)			(2)			—			—			—			(8)
Recoveries	—			—			—			—			—			—			—
Net (charge-offs)/recoveries	—			(6)			(2)			—			—			—			(8)
Foreign exchange translation adjustment	—			—			1			—			—			—			1
Balance at end of period	$	7		$	211		$	174		$	17		$	68		$	2		$	479
ACL by loan portfolio segment as a % of total ACL	1.5		%	44.1		%	36.3		%	3.5		%	14.2		%	0.4		%	100.0		%

Three months ended December 31, 2022
Balance at beginning of period	$	3		$	226		$	87		$	21		$	57		$	2		$	396



Provision/(benefit) for credit losses	1			—			2			(6)			17			—			14

Net (charge-offs)/recoveries:
Charge-offs	—			(4)			(1)			—			—			—			(5)
Recoveries	—			—			3			—			—			—			3
Net (charge-offs)/recoveries	—			(4)			2			—			—			—			(2)
Foreign exchange translation adjustment	—			—			—			—			—			—			—
Balance at end of period	$	4		$	222		$	91		$	15		$	74		$	2		$	408
ACL by loan portfolio segment as a % of total ACL	1.0		%	54.4		%	22.3		%	3.7		%	18.1		%	0.5		%	100.0		%

The allowance for credit losses on held for investment bank loans increased $5 million during the three months ended December 31, 2023 primarily resulting from provisions for credit losses of $12 million, partially offset by net charge-offs of certain loans during the period. The provision for credit losses for the three months ended December 31, 2023 primarily reflected the impacts of specific reserves in our C&I and CRE loan portfolios, loan downgrades, and charge-offs, partially offset by the favorable impact of loan repayments and sales, which had a larger impact on the current quarter expense than provisions on new loans.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $20 million and $22 million at December 31, 2023 and September 30, 2023, respectively.

NOTE 8 – LOANS TO FINANCIAL ADVISORS, NET

Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 of our 2023 Form 10-K for a discussion of our accounting policies related to loans to financial advisors and the related allowance for credit losses. The following table presents the balances for our loans to financial advisors and the related accrued interest receivable.


$ in millions	December 31, 2023			September 30, 2023
Affiliated with the firm as of period-end (1)	$	1,206		$	1,158
No longer affiliated with the firm as of period-end (2)	13			10
Total loans to financial advisors	1,219			1,168
Allowance for credit losses	(35)			(32)
Loans to financial advisors, net	$	1,184		$	1,136
Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”)	$	6		$	6
Allowance for credit losses as a percent of total loans to financial advisors	2.87		%	2.74		%

(1)These loans were predominantly current.

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


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 9 – VARIABLE INTEREST ENTITIES

A VIE requires consolidation by the entity’s primary beneficiary. We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. Refer to Note 2 of our 2023 Form 10-K for a discussion of our principal involvement with VIEs and the accounting policies regarding determination of whether we are deemed to be the primary beneficiary of VIEs.

VIEs where we are the primary beneficiary

Of the VIEs in which we hold an interest, we have determined that certain investments in low-income housing tax credit (“LIHTC”) funds and the trust we utilize in connection with restricted stock unit (“RSU”) awards granted to certain employees of one of our Canadian subsidiaries (the “Restricted Stock Trust Fund”) require consolidation in our financial statements, as we are deemed the primary beneficiary of such VIEs. The aggregate assets and liabilities of the VIEs we consolidate are provided in the following table. Aggregate assets and aggregate liabilities may differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE.


$ in millions	Aggregate assets		Aggregate liabilities
December 31, 2023

LIHTC funds	$	123	$	50
Restricted Stock Trust Fund	29		29
Total	$	152	$	79

September 30, 2023

LIHTC funds	$	51	$	6
Restricted Stock Trust Fund	20		20
Total	$	71	$	26

The following table presents information about the carrying value of the assets and liabilities of the VIEs which we consolidate and which are included on our Condensed Consolidated Statements of Financial Condition. Intercompany balances are eliminated in consolidation and are not reflected in the following table.


$ in millions	December 31, 2023		September 30, 2023
Assets:
Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash	$	14	$	5


Other assets	109		46
Total assets	$	123	$	51
Liabilities:
Other payables	$	30	$	—

Total liabilities	$	30	$	—
Noncontrolling interests	$	(9)	$	(27)

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

As discussed in Note 2 of our 2023 Form 10-K, we have concluded that for certain VIEs we are not the primary beneficiary and therefore do not consolidate these VIEs. Such VIEs primarily include certain LIHTC funds, our interests in certain limited partnerships which are part of our private equity portfolio (“Private Equity Interests”), and other limited partnerships. Our risk of loss for these VIEs is limited to our investments in, advances to, and/or receivables due from these VIEs.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Aggregate assets, liabilities, and risk of loss

The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table.


	December 31, 2023						September 30, 2023
$ in millions	Aggregate assets		Aggregate liabilities		Our risk of loss		Aggregate assets		Aggregate liabilities		Our risk of loss
LIHTC funds	$	8,854	$	3,146	$	47	$	8,451	$	2,964	$	113
Private Equity Interests	2,709		752		101		2,591		655		101
Other	184		69		3		201		84		3
Total	$	11,747	$	3,967	$	151	$	11,243	$	3,703	$	217

NOTE 10 - OTHER ASSETS

The following table details the components of other assets as of the dates indicated. See Note 2 of our 2023 Form 10-K for a discussion of our accounting polices related to certain of these components.



$ in millions	December 31, 2023		September 30, 2023
Investments in company-owned life insurance policies	$	1,228	$	1,110
Property and equipment, net	580		561
Lease right-of-use (“ROU”) assets	552		560
Prepaid expenses	257		209

Investments in FHLB and FRB stock	114		114
Client-owned fractional shares	110		98
All other	219		141
Total other assets	$	3,060	$	2,793

See Note 13 of our 2023 Form 10-K for additional information regarding our property and equipment and Note 11 of this Form 10-Q and Note 14 of our 2023 Form 10-K for additional information regarding our leases.

NOTE 11 – LEASES

The following table presents the balances related to our leases on our Condensed Consolidated Statements of Financial Condition. See Notes 2 and 14 of our 2023 Form 10-K for additional information related to our leases, including a discussion of our accounting policies.


$ in millions	December 31, 2023		September 30, 2023
ROU assets (included in “Other assets”)	$	552	$	560
Lease liabilities (included in “Other payables”)	$	537	$	539

Lease liabilities as of December 31, 2023 excluded $42 million of minimum lease payments related to lease arrangements that were legally binding but had not yet commenced. These leases are estimated to commence between dates later in fiscal year 2024 through fiscal year 2025 with lease terms ranging from four to ten years.

Lease expense

The following table details the components of lease expense, which is included in “Occupancy and equipment” expense on our Condensed Consolidated Statements of Income and Comprehensive Income.


	Three months ended December 31,
$ in millions	2023		2022
Lease costs	$	35	$	31
Variable lease costs	$	9	$	7

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


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 12 – BANK DEPOSITS

Bank deposits include money market and savings accounts, interest-bearing demand deposits, which include Negotiable Order of Withdrawal accounts, certificates of deposit, and non-interest-bearing demand deposits held by either of our bank subsidiaries. The following table presents a summary of bank deposits, excluding affiliate deposits, as well as the weighted-average interest rates on such deposits. The calculation of the weighted-average rates was based on the actual deposit balances and rates at each respective period end.


	December 31, 2023				September 30, 2023
$ in millions	Balance		Weighted-average rate		Balance		Weighted-average rate
Money market and savings accounts	$	31,315	1.96	%	$	32,268	1.85	%
Interest-bearing demand deposits	20,423		5.02	%	18,376		4.98	%
Certificates of deposit	2,885		4.63	%	2,831		4.41	%
Non-interest-bearing demand deposits	770		—		724		—
Total bank deposits	$	55,393	3.25	%	$	54,199	3.06	%

Money market and savings accounts in the preceding table included $23.91 billion and $25.36 billion as of December 31, 2023 and September 30, 2023, respectively, of cash balances which were swept to our Bank segment from the client investment accounts maintained at Raymond James & Associates, Inc. (“RJ&A”). Such deposits are held in Federal Deposit Insurance Corporation (“FDIC”)-insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”). Total bank deposits in the preceding table included $14.48 billion and $13.59 billion of deposits as of December 31, 2023 and September 30, 2023, respectively, associated with our Enhanced Savings Program (“ESP”), in which PCG clients deposit cash in a high-yield Raymond James Bank account. Substantially all of the ESP balances are reflected in interest-bearing demand deposits in the preceding table.

The following table details the amount of total bank deposits (which excludes affiliate deposits) that are FDIC-insured, as well as the amount that exceeded the FDIC insurance limit at each respective period.


$ in millions	December 31, 2023			September 30, 2023
FDIC-insured bank deposits	$	49,152		$	48,344
Bank deposits exceeding FDIC insurance limit (1) (2)	6,241			5,855
Total bank deposits	$	55,393		$	54,199
FDIC-insured bank deposits as a % of total bank deposits	89		%	89		%

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

(2)Excluded affiliate deposits exceeding the FDIC insurance limit of $924 million and $764 million as of December 31, 2023 and September 30, 2023, respectively.

The following table sets forth the amount of certificates of deposit that exceeded the FDIC insurance limit, categorized by the time remaining until maturity, as of December 31, 2023.


$ in millions	December 31, 2023
Three months or less	$	74
Over three through six months	37
Over six through twelve months	28
Over twelve months	12
Total certificates of deposit that exceeded the FDIC insurance limit (1)	$	151

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


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

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


	Three months ended December 31,
$ in millions	2023		2022
Money market and savings accounts	$	156	$	117
Interest-bearing demand deposits	243		47
Certificates of deposit	32		8
Total interest expense on deposits	$	431	$	172

We use an interest rate swap to manage the risk of increases in interest rates associated with certain money market and savings accounts by converting the balances subject to variable interest rates to a fixed interest rate. See Note 2 of our 2023 Form 10-K for information regarding this interest rate swap, which has been designated and accounted for as a cash flow hedge.

NOTE 13 – OTHER BORROWINGS

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


	December 31, 2023					September 30, 2023
$ in millions	Weighted-average interest rate		Maturity date	Balance		Weighted-average interest rate		Maturity date	Balance
FHLB advances:
Floating rate - term	5.71	%	March 2025 - June 2025	$	650	5.62	%	December 2023 - March 2025	$	850

Fixed rate	4.76	%	March 2024 - December 2028	350		5.70	%	December 2023	150
Total FHLB advances				1,000					1,000
Subordinated notes - fixed-to-floating (including an unaccreted premium of $1 and $2, respectively)	5.75	%	May 2030	99		5.75	%	May 2030	100

Total other borrowings				$	1,099				$	1,100

We use interest rate swaps to manage the risk of increases in interest rates associated with the majority our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate. See Note 2 of our 2023 Form 10-K and Note 5 of this Form 10-Q for information regarding these interest rate swaps, which have been designated and accounted for as cash flow hedges. See Note 6 for additional information regarding bank loans and available-for-sale securities pledged with the FHLB as security for our FHLB borrowings.

Subordinated notes

As of December 31, 2023, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $98 million. Our subordinated notes incur interest at a fixed rate of 5.75% until May 2025 and thereafter at a variable interest rate equal to 3-month CME Term Secured Overnight Financing Rate (“SOFR”) plus a spread adjustment of 5.62% per annum. We may redeem these subordinated notes beginning in August 2025 at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to the redemption date.

Credit Facility

RJF and RJ&A are parties to a revolving credit facility agreement (the “Credit Facility”), a committed unsecured line of credit under which either RJ&A or RJF have the ability to borrow. The Credit Facility has a term through April 2028 and provides for maximum borrowings of up to $750 million. The interest rates on borrowings under the Credit Facility are variable and based on SOFR, as adjusted for RJF’s credit rating. There were no borrowings outstanding on the Credit Facility as of December 31, 2023 or September 30, 2023. There is a facility fee associated with the Credit Facility, which also varies with RJF’s credit rating (the “Variable Rate Facility Fee”). Based upon RJF’s credit rating as of December 31, 2023, the Variable Rate Facility Fee, which is applied to the committed amount, was 0.125% per annum.

For further information on our other borrowing arrangements refer to Note 16 of our 2023 Form 10-K.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 14 – INCOME TAXES

The income tax provision for interim periods is comprised of tax on ordinary income provided at the most recent estimated annual effective tax rate, adjusted for the tax effect of discrete items. We estimate the annual effective tax rate quarterly based on the forecasted pre-tax results of our U.S. and non-U.S. operations. Items unrelated to current year ordinary income are recognized entirely in the period identified as a discrete item of tax. These discrete items generally relate to changes in tax laws, adjustments to the actual liability determined upon filing tax returns, excess tax benefits related to share-based compensation and adjustments to previously recorded reserves for uncertain tax positions. For discussion of income tax accounting policies and other income tax related information, see Notes 2 and 18 of our 2023 Form 10-K.

Effective tax rate

Our effective income tax rate of 21.0% for the three months ended December 31, 2023 was lower than the 23.7% effective tax rate for our fiscal year 2023. The decrease in the effective income tax rate was primarily due to a larger tax benefit recognized during the current quarter related to share-based compensation that vested during the period, compared to that for the fiscal year 2023. Additionally, our effective income tax rate for the fiscal year 2023 reflected the adverse impact of nondeductible fines and penalties that did not recur during the current quarter.

Uncertain tax positions

Although management cannot predict with any degree of certainty the timing of ultimate resolution of matters under review by various taxing jurisdictions, it is reasonably possible that our uncertain tax position liability balance may decrease within the next 12 months by up to $6 million due to expiration of statutes of limitations of federal and state tax returns.

NOTE 15 – COMMITMENTS, CONTINGENCIES AND GUARANTEES

Commitments and contingencies

Underwriting commitments

In the normal course of business, we enter into commitments for debt and equity underwritings. As of December 31, 2023, we had no such open underwriting commitments.

Lending commitments and other credit-related financial instruments

We have outstanding, at any time, a significant number of commitments to extend credit and other credit-related off-balance-sheet financial instruments, such as standby letters of credit and loan purchases, which extend over varying periods of time. These arrangements are subject to strict underwriting assessments and each client’s credit worthiness is evaluated on a case-by-case basis. Fixed-rate commitments are subject to market risk resulting from fluctuations in interest rates and our exposure is limited to the replacement value of those commitments.

The following table presents our commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding at our Bank segment.


$ in millions	December 31, 2023		September 30, 2023
SBL and other consumer lines of credit	$	39,731	$	38,791
Commercial lines of credit	$	4,144	$	4,131
Unfunded lending commitments	$	869	$	936
Standby letters of credit	$	112	$	123

SBL and other consumer lines of credit primarily represent the unfunded amounts of bank loans to consumers that are primarily secured by marketable securities or other liquid collateral at advance rates consistent with industry standards. The proceeds from repayment or, if necessary, the liquidation of collateral, which is monitored daily, are expected to satisfy the amounts drawn against these existing lines of credit. These lines of credit are primarily uncommitted, as we reserve the right to not make any advances or may terminate these lines at any time.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Because many of our lending commitments expire without being funded in whole or in part, the contractual amounts are not estimates of our actual future credit exposure or future liquidity requirements. The allowance for credit losses calculated under the CECL model provides for potential losses related to the unfunded lending commitments. See Note 2 of our 2023 Form 10-K and Note 7 of this Form 10-Q for additional information regarding this allowance for credit losses related to unfunded lending commitments.

RJ&A enters into margin lending arrangements which allow clients to borrow against the value of qualifying securities. Margin loans are collateralized by the securities held in the client’s account at RJ&A. Collateral levels and established credit terms are monitored daily and we require clients to deposit additional collateral or reduce balances as necessary.

We offer loans to prospective financial advisors for recruiting and retention purposes (see Note 2 of our 2023 Form 10-K and Note 8 of this Form 10-Q for additional information regarding our loans to financial advisors). These offers are contingent upon certain events occurring, including the individuals joining us and meeting certain other conditions outlined in their offer. We had no such unfunded commitments for loans to financial advisors who have met such conditions as of December 31, 2023.

Investment commitments

We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $63 million as of December 31, 2023.

Other commitments

Raymond James Affordable Housing Investments, Inc. (“RJAHI”) sells investments in project partnerships to various LIHTC funds, which have third-party investors, and for which RJAHI serves as the managing member or general partner. RJAHI typically sells investments in project partnerships to LIHTC funds within 90 days of their acquisition. Until such investments are sold to LIHTC funds, RJAHI is responsible for funding investment commitments to such partnerships. As of December 31, 2023, RJAHI had committed approximately $248 million to project partnerships that had not yet been sold to LIHTC funds. Because we expect to sell these project partnerships to LIHTC funds and the equity funding events arise over future periods, the contractual commitments are not expected to materially impact our future liquidity requirements. RJAHI may also make short-term loans or advances to project partnerships and LIHTC funds.

For information regarding our lease commitments see Note 11 of this Form 10-Q and for information on the maturities of our lease liabilities see Note 14 of our 2023 Form 10-K.

Guarantees

Our U.S. broker-dealer subsidiaries are required by federal law to be members of the Securities Investors Protection Corporation (“SIPC”). The SIPC fund provides protection up to $500 thousand per client for securities and cash held in client accounts, including a limitation of $250 thousand on claims for cash balances. We have purchased excess SIPC coverage through various syndicates of Lloyd’s of London. For RJ&A, our clearing broker-dealer, the additional protection currently provided has an aggregate firm limit of $750 million for cash and securities, including a sub-limit of $1.9 million per client for cash above basic SIPC. Account protection applies when a SIPC member fails financially and is unable to meet its obligations to clients. This coverage does not protect against market fluctuations. RJF has provided an indemnity to Lloyd’s of London against any and all losses they may incur associated with the excess SIPC policies.

Legal and regulatory matters contingencies

In the normal course of our business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a diversified financial services institution.

RJF and certain of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and self-regulatory organizations. Reviews can result in the imposition of sanctions for regulatory violations, ranging from non-monetary censures to fines and, in serious cases, temporary or permanent suspension from conducting business, or limitations on certain business activities. In addition, regulatory agencies and self-regulatory organizations institute investigations from time to time, among other things, into industry practices, which can also result in the imposition of such sanctions. For example, the firm has cooperated with the SEC in connection with an investigation of the firm’s investment advisory business’ compliance with records preservation requirements relating to business communications sent over electronic messaging channels that have not been approved by the firm. The SEC is reportedly conducting similar investigations of record preservation practices at other


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

financial institutions. As of December 31, 2023, we continue to maintain an accrual related to this SEC investigation in our condensed consolidated financial statements in accordance with our contingent liabilities accounting policy. Refer to Note 2 of our 2023 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies.

We may contest liability and/or the amount of damages, as appropriate, in each pending matter. The level of litigation and investigatory activity (both formal and informal) by government and self-regulatory agencies in the financial services industry continues to be significant. There can be no assurance that material losses will not be incurred from claims that have not yet been asserted or are not yet determined to be material.

For many legal and regulatory matters, we are unable to estimate a range of reasonably possible loss as we cannot predict if, how or when such proceedings or investigations will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be. A large number of factors may contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental proceedings, potential fines and penalties); the matters present significant legal uncertainties; we have not engaged in settlement discussions; discovery is not complete; there are significant facts in dispute; and numerous parties are named as defendants (including where it is uncertain how liability might be shared among defendants). Subject to the foregoing, after consultation with counsel, we believe that the outcome of such litigation and regulatory proceedings will not have a material adverse effect on our consolidated financial condition. However, the outcome of such litigation and regulatory proceedings could be material to our operating results and cash flows for a particular future period, depending on, among other things, our revenues or income for such period.

There are certain matters for which we are unable to estimate the upper end of the range of reasonably possible loss. With respect to legal and regulatory matters for which management has been able to estimate a range of reasonably possible loss as of December 31, 2023, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $35 million in excess of the aggregate accruals for such matters. Refer to Note 2 of our 2023 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies.

NOTE 16 – SHAREHOLDERS’ EQUITY

Preferred stock

The following table details the shares outstanding, carrying value, and aggregate liquidation preference of our preferred stock. For further details regarding our preferred stock see Note 20 of our 2023 Form 10-K.


$ in millions	December 31, 2023		September 30, 2023
6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (“Series B Preferred Stock”):
Shares outstanding	80,500		80,500
Carrying value	$	79	$	79
Aggregate liquidation preference	$	81	$	81

The following table details dividends declared and dividends paid on our 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”) and Series B Preferred Stock for the three months ended December 31, 2023 and 2022. We redeemed all outstanding shares of our Series A Preferred Stock on April 3, 2023.


	Dividends declared				Dividends paid
$ in millions, except per share amounts	Total dividends		Per preferred share amount		Total dividends		Per preferred share amount
Three months ended December 31, 2023

Series B Preferred Stock	$	1	$	15.94	$	1	$	15.94






Three months ended December 31, 2022
Series A Preferred Stock	$	1	$	16.88	$	1	$	16.88
Series B Preferred Stock	1		$	15.94	1		$	15.94
Total	$	2			$	2


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Common equity

The following table presents the changes in our common shares outstanding for the three months ended December 31, 2023 and 2022.


	Three months ended December 31,
Shares in millions	2023	2022
Balance beginning of period	208.8	215.1
Repurchases of common stock	(1.4)	(1.3)
Issuances due to vesting of RSUs and exercise of stock options, net of forfeitures	1.3	1.2


Balance end of period	208.7	215.0

We issue shares from time to time during the year to satisfy obligations under certain of our share-based compensation programs, some of which may be reissued out of treasury shares. See Note 19 of this Form 10-Q and Note 23 of our 2023 Form 10-K for additional information on these programs.

Share repurchases

We repurchase shares of our common stock from time to time for a number of reasons, including to offset dilution, which could arise from share issuances resulting from share-based compensation programs or acquisitions. In November 2023, our Board of Directors authorized common stock repurchases of up to $1.5 billion, which replaced the previous authorization. Our share repurchases are effected primarily through regular open-market purchases, typically under a SEC Rule 10b-18 plan, the amounts and timing of which are determined primarily by our current and projected capital position, applicable legal and regulatory constraints, general market conditions and the price and trading volumes of our common stock. During the three months ended December 31, 2023, we repurchased 1.41 million shares of our common stock for $150 million at an average price of $106.51 per share. As of December 31, 2023, $1.39 billion remained available under the Board of Directors’ common stock repurchase authorization.

Common stock dividends

Dividends per common share declared and paid are detailed in the following table for each respective period.


	Three months ended December 31,
	2023		2022
Dividends per common share - declared	$	0.45	$	0.42
Dividends per common share - paid	$	0.42	$	0.34

Our dividend payout ratio is detailed in the following table for each respective period and is computed by dividing dividends declared per common share by earnings per diluted common share.


	Three months ended December 31,
	2023		2022
Dividend payout ratio	19.4	%	18.3	%

We expect to continue paying cash dividends; however, the payment and rate of dividends on our common stock are subject to several factors including our operating results, financial and regulatory requirements or restrictions, and the availability of funds from our subsidiaries, including our broker-dealer and bank subsidiaries, which may also be subject to restrictions under regulatory capital rules. The availability of funds from subsidiaries may also be subject to restrictions contained in loan covenants of certain broker-dealer loan agreements and restrictions by bank regulators on dividends to the parent from our bank subsidiaries. See Note 20 of this Form 10-Q for additional information on our regulatory capital requirements.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Accumulated other comprehensive income/(loss)

All of the components of other comprehensive income/(loss) (“OCI”), net of tax, were attributable to RJF. The following table presents the net change in AOCI as well as the changes, and the related tax effects, of each component of AOCI.


$ in millions	Net investment hedges		Currency translations		Subtotal: net investment hedges and currency translations		Available- for-sale securities		Cash flow hedges		Total
Three months ended December 31, 2023










AOCI as of beginning of period	$	143	$	(216)	$	(73)	$	(942)	$	44	$	(971)
OCI:
OCI before reclassifications and taxes	(29)		51		22		358		(18)		362
Amounts reclassified from AOCI, before tax	—		—		—		—		(10)		(10)
Pre-tax net OCI	(29)		51		22		358		(28)		352
Income tax effect	7		—		7		(88)		7		(74)
OCI for the period, net of tax	(22)		51		29		270		(21)		278
AOCI as of end of period	$	121	$	(165)	$	(44)	$	(672)	$	23	$	(693)

Three months ended December 31, 2022
AOCI as of beginning of period	$	153	$	(276)	$	(123)	$	(902)	$	43	$	(982)
OCI:
OCI before reclassifications and taxes	(19)		60		41		85		2		128
Amounts reclassified from AOCI, before tax	—		—		—		—		(5)		(5)
Pre-tax net OCI	(19)		60		41		85		(3)		123
Income tax effect	5		—		5		(38)		1		(32)
OCI for the period, net of tax	(14)		60		46		47		(2)		91
AOCI as of end of period	$	139	$	(216)	$	(77)	$	(855)	$	41	$	(891)

Reclassifications from AOCI to net income, excluding taxes, for the three months ended December 31, 2023 and 2022 were recorded in “Interest expense” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Our net investment hedges and cash flow hedges relate to derivatives associated with our Bank segment. For further information about our significant accounting policies related to derivatives, see Note 2 of our 2023 Form 10-K. In addition, see Note 5 of this Form 10-Q for additional information on these derivatives.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 17 – REVENUES

The following tables present our sources of revenues by segment. For further information about our significant accounting policies related to revenue recognition see Note 2 of our 2023 Form 10-K. See Note 26 of our 2023 Form 10-K and Note 22 of this Form 10-Q for additional information on our segments.


	Three months ended December 31, 2023
$ in millions	Private Client Group		Capital Markets		Asset Management		Bank		Other and intersegment eliminations		Total
Revenues:
Asset management and related administrative fees	$	1,191	$	—	$	224	$	—	$	(8)	$	1,407
Brokerage revenues:
Securities commissions:
Mutual and other fund products	136		2		2		—		(3)		137
Insurance and annuity products	125		—		—		—		—		125
Equities, exchange-traded funds (“ETFs”) and fixed income products	89		33		—		—		(1)		121
Subtotal securities commissions	350		35		2		—		(4)		383
Principal transactions (1)	32		105		—		2		—		139
Total brokerage revenues	382		140		2		2		(4)		522
Account and service fees:
Mutual fund and annuity service fees	106		—		1		—		(1)		106
RJBDP fees	375		1		—		—		(224)		152
Client account and other fees	65		2		5		—		(11)		61
Total account and service fees	546		3		6		—		(236)		319
Investment banking:
Merger & acquisition and advisory	—		118		—		—		—		118
Equity underwriting	11		26		—		—		—		37
Debt underwriting	—		26		—		—		—		26
Total investment banking	11		170		—		—		—		181
Other:
Affordable housing investments business revenues	—		23		—		—		—		23
All other (1)	4		1		—		13		(3)		15
Total other	4		24		—		13		(3)		38
Total non-interest revenues	2,134		337		232		15		(251)		2,467
Interest income (1)	118		23		3		872		37		1,053
Total revenues	2,252		360		235		887		(214)		3,520
Interest expense	(26)		(22)		—		(446)		(13)		(507)
Net revenues	$	2,226	$	338	$	235	$	441	$	(227)	$	3,013

(1)These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index


	Three months ended December 31, 2022
$ in millions	Private Client Group		Capital Markets		Asset Management		Bank		Other and intersegment eliminations		Total
Revenues:
Asset management and related administrative fees	$	1,053	$	1	$	197	$	—	$	(9)	$	1,242
Brokerage revenues:
Securities commissions:
Mutual and other fund products	128		1		1		—		—		130
Insurance and annuity products	104		—		—		—		—		104
Equities, ETFs and fixed income products	85		33		—		—		—		118
Subtotal securities commissions	317		34		1		—		—		352
Principal transactions (1)	28		100		—		4		—		132
Total brokerage revenues	345		134		1		4		—		484
Account and service fees:
Mutual fund and annuity service fees	98		—		—		—		—		98
RJBDP fees	405		1		—		—		(269)		137
Client account and other fees	60		2		5		—		(13)		54
Total account and service fees	563		3		5		—		(282)		289
Investment banking:
Merger & acquisition and advisory	—		102		—		—		—		102
Equity underwriting	9		15		—		—		(1)		23
Debt underwriting	—		16		—		—		—		16
Total investment banking	9		133		—		—		(1)		141
Other:
Affordable housing investments business revenues	—		24		—		—		—		24
All other (1)	6		—		2		13		(1)		20
Total other	6		24		2		13		(1)		44
Total non-interest revenues	1,976		295		205		17		(293)		2,200
Interest income (1)	109		23		2		676		17		827
Total revenues	2,085		318		207		693		(276)		3,027
Interest expense	(22)		(23)		—		(185)		(11)		(241)
Net revenues	$	2,063	$	295	$	207	$	508	$	(287)	$	2,786

(1)These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers.

At December 31, 2023 and September 30, 2023, net receivables related to contracts with customers were $481 million and $519 million, respectively.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 18 – INTEREST INCOME AND INTEREST EXPENSE

The following table details the components of interest income and interest expense.


	Three months ended December 31,
$ in millions	2023		2022
Interest income:
Cash and cash equivalents	$	132	$	55
Assets segregated for regulatory purposes and restricted cash	47		50
Trading assets — debt securities	15		14
Available-for-sale securities	56		53
Brokerage client receivables	45		41
Bank loans, net	734		599
All other	24		15
Total interest income	$	1,053	$	827
Interest expense:
Bank deposits	$	431	$	172
Trading liabilities — debt securities	11		10
Brokerage client payables	20		17
Other borrowings	8		9
Senior notes payable	23		23
All other	14		10
Total interest expense	$	507	$	241
Net interest income	$	546	$	586
Bank loan provision for credit losses	(12)		(14)
Net interest income after bank loan provision for credit losses	$	534	$	572

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

NOTE 19 – SHARE-BASED COMPENSATION

We have one share-based compensation plan, the Raymond James Financial, Inc. Amended and Restated 2012 Stock Incentive Plan (“the Plan”), for our employees, Board of Directors, and independent contractor financial advisors. We may utilize treasury shares for grants under the Plan, though we are also permitted to issue new shares. Our share-based compensation awards are primarily issued during the first quarter of each fiscal year. Our share-based compensation accounting policies are described in Note 2 of our 2023 Form 10-K. Other information related to our share-based awards is presented in Note 23 of our 2023 Form 10-K.

Restricted stock units

During the three months ended December 31, 2023, we granted approximately 1.7 million RSUs with a weighted-average grant-date fair value of $106.68, compared with approximately 1.9 million RSUs granted during the three months ended December 31, 2022, with a weighted-average grant-date fair value of $117.66. For the three months ended December 31, 2023, total share-based compensation amortization related to RSUs was $87 million, compared with $76 million for the three months ended December 31, 2022.

As of December 31, 2023, there were $425 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the three months ended December 31, 2023. These costs are expected to be recognized over a weighted-average period of three years.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Restricted stock awards

Restricted stock awards (“RSAs”) were issued as a component of our total purchase consideration for TriState Capital on June 1, 2022, in accordance with the terms of the acquisition. See Note 23 of our 2023 Form 10-K for further discussion of these awards. For the three months ended December 31, 2023 total share-based compensation amortization related to these RSAs was $2 million, compared with $3 million for the three months ended December 31, 2022. As of December 31, 2023, there were $10 million of total pre-tax compensation costs not yet recognized for these RSAs. These costs are expected to be recognized over a weighted-average period of two years.

NOTE 20 – REGULATORY CAPITAL REQUIREMENTS

RJF, as a bank holding company and financial holding company, as well as Raymond James Bank, TriState Capital Bank, our broker-dealer subsidiaries and our trust subsidiaries are subject to capital requirements by various regulatory authorities. Capital levels of each entity are monitored to ensure compliance with our various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial results.

As a bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHC Act”) that has made an election to be a financial holding company, RJF is subject to supervision, examination, and regulation by the Board of Governors of the Federal Reserve System (“the Fed”). We are subject to the Fed’s capital rules which establish an integrated regulatory capital framework and implement, in the U.S., the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. We apply the standardized approach for calculating risk-weighted assets and are also subject to the market risk provisions of the Fed’s capital rules (“market risk rule”).

Under these rules, minimum requirements are established for both the quantity and quality of capital held by banking organizations. RJF, Raymond James Bank, and TriState Capital Bank are required to maintain minimum leverage ratios (defined as tier 1 capital divided by adjusted average assets), as well as minimum ratios of tier 1 capital, common equity tier 1 (“CET1”), and total capital to risk-weighted assets. These capital ratios incorporate quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under the regulatory capital rules and are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. We calculate these ratios in order to assess compliance with both regulatory requirements and internal capital policies. In order to maintain our ability to take certain capital actions, including dividends and common equity repurchases, and to make bonus payments, we must hold a capital conservation buffer above our minimum risk-based capital requirements. As of December 31, 2023, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirement and each entity was categorized as “well-capitalized.”

For further discussion of regulatory capital requirements applicable to certain of our businesses and subsidiaries, see Note 24 of our 2023 Form 10-K.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

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


	Actual				Requirement for capital adequacy purposes				To be well-capitalized under regulatory provisions
$ in millions	Amount		Ratio		Amount		Ratio		Amount		Ratio
RJF as of December 31, 2023:
Tier 1 leverage	$	9,646	12.1	%	$	3,185	4.0	%	$	3,981	5.0	%
Tier 1 capital	$	9,646	21.6	%	$	2,676	6.0	%	$	3,568	8.0	%
CET1	$	9,570	21.5	%	$	2,007	4.5	%	$	2,899	6.5	%
Total capital	$	10,271	23.0	%	$	3,568	8.0	%	$	4,461	10.0	%

RJF as of September 30, 2023:
Tier 1 leverage	$	9,321	11.9	%	$	3,123	4.0	%	$	3,904	5.0	%
Tier 1 capital	$	9,321	21.4	%	$	2,613	6.0	%	$	3,484	8.0	%
CET1	$	9,245	21.2	%	$	1,960	4.5	%	$	2,831	6.5	%
Total capital	$	9,934	22.8	%	$	3,484	8.0	%	$	4,355	10.0	%

As of December 31, 2023, RJF’s regulatory capital increase compared with September 30, 2023 was driven by an increase in equity due to positive earnings, partially offset by share repurchases and dividends. RJF’s Tier 1 capital and Total capital ratios increased compared with September 30, 2023 resulting from the increase in regulatory capital, partially offset by an increase in risk-weighted assets. The increase in risk-weighted assets was primarily driven by an increase in our bank loan portfolio and company-owned life insurance policies. RJF’s Tier 1 leverage ratio at December 31, 2023 increased compared to September 30, 2023 due to the increase in regulatory capital, which was partially offset by higher average assets, primarily driven by an increase in cash and our bank loan portfolio.

To meet the requirements for capital adequacy or to be categorized as “well-capitalized,” Raymond James Bank and TriState Capital Bank must maintain Tier 1 leverage, Tier 1 capital, CET1, and Total capital amounts and ratios as set forth in the following tables. Our intention is to maintain Raymond James Bank’s and TriState Capital Bank’s “well-capitalized” status. In the unlikely event that Raymond James Bank or TriState Capital Bank failed to maintain their “well-capitalized” status, the consequences could include a requirement to obtain a waiver from the FDIC prior to acceptance, renewal, or rollover of brokered deposits and result in higher FDIC premiums, but would not significantly impact our operations.


	Actual				Requirement for capital adequacy purposes				To be well-capitalized under regulatory provisions
$ in millions	Amount		Ratio		Amount		Ratio		Amount		Ratio
Raymond James Bank as of December 31, 2023:
Tier 1 leverage	$	3,375	7.9	%	$	1,702	4.0	%	$	2,127	5.0	%
Tier 1 capital	$	3,375	13.9	%	$	1,457	6.0	%	$	1,942	8.0	%
CET1	$	3,375	13.9	%	$	1,093	4.5	%	$	1,578	6.5	%
Total capital	$	3,681	15.2	%	$	1,942	8.0	%	$	2,428	10.0	%

Raymond James Bank as of September 30, 2023:
Tier 1 leverage	$	3,355	7.8	%	$	1,710	4.0	%	$	2,137	5.0	%
Tier 1 capital	$	3,355	13.7	%	$	1,465	6.0	%	$	1,954	8.0	%
CET1	$	3,355	13.7	%	$	1,099	4.5	%	$	1,587	6.5	%
Total capital	$	3,662	15.0	%	$	1,954	8.0	%	$	2,442	10.0	%

TriState Capital Bank as of December 31, 2023:
Tier 1 leverage	$	1,358	7.1	%	$	764	4.0	%	$	956	5.0	%
Tier 1 capital	$	1,358	15.2	%	$	536	6.0	%	$	715	8.0	%
CET1	$	1,358	15.2	%	$	402	4.5	%	$	581	6.5	%
Total capital	$	1,403	15.7	%	$	715	8.0	%	$	894	10.0	%

TriState Capital Bank as of September 30, 2023:
Tier 1 leverage	$	1,290	7.2	%	$	721	4.0	%	$	902	5.0	%
Tier 1 capital	$	1,290	14.8	%	$	524	6.0	%	$	699	8.0	%
CET1	$	1,290	14.8	%	$	393	4.5	%	$	568	6.5	%
Total capital	$	1,333	15.3	%	$	699	8.0	%	$	874	10.0	%


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

Our bank subsidiaries may pay dividends to RJF without prior approval of their respective regulators subject to certain restrictions including retained net income and targeted regulatory capital ratios. Dividends paid to RJF from our bank subsidiaries may be limited to the extent that capital is needed to support their balance sheet growth.

Certain of our broker-dealer subsidiaries are subject to the requirements of the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934. The following table presents the net capital position of RJ&A.


$ in millions	December 31, 2023			September 30, 2023
Raymond James & Associates, Inc.:
(Alternative Method elected)
Net capital as a percent of aggregate debit items	38.5		%	43.3		%
Net capital	$	988		$	1,035
Less: required net capital	(51)			(48)
Excess net capital	$	937		$	987

As of December 31, 2023, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.

NOTE 21 – EARNINGS PER SHARE

The following table presents the computation of basic and diluted earnings per common share.


	Three months ended December 31,
in millions, except per share amounts	2023		2022
Income for basic earnings per common share:
Net income available to common shareholders	$	497	$	507
Less allocation of earnings and dividends to participating securities	(1)		(1)
Net income available to common shareholders after participating securities	$	496	$	506
Income for diluted earnings per common share:
Net income available to common shareholders	$	497	$	507
Less allocation of earnings and dividends to participating securities	(1)		(1)
Net income available to common shareholders after participating securities	$	496	$	506
Common shares:
Average common shares in basic computation	208.6		214.7
Dilutive effect of outstanding stock options and certain RSUs	5.2		5.7
Average common and common equivalent shares used in diluted computation	213.8		220.4
Earnings per common share:
Basic	$	2.38	$	2.36
Diluted	$	2.32	$	2.30
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive	1.2		1.2

The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the period to participating securities, consisting of RSAs and certain RSUs, plus an allocation of undistributed earnings to such participating securities. Participating securities and related dividends paid on these participating securities were insignificant for each of the three months ended December 31, 2023 and 2022. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

NOTE 22 – SEGMENT INFORMATION

We currently operate through the following five segments: PCG; Capital Markets; Asset Management; Bank; and Other.

The segments are determined based upon factors such as the services provided and the distribution channels served and are consistent with how we assess performance and determine how to allocate our resources. For a further discussion of our segments, see Note 26 of our 2023 Form 10-K.

The following table presents information concerning operations in these segments.


	Three months ended December 31,
$ in millions	2023		2022
Net revenues:
Private Client Group	$	2,226	$	2,063
Capital Markets	338		295
Asset Management	235		207
Bank	441		508
Other	26		9
Intersegment eliminations	(253)		(296)
Total net revenues	$	3,013	$	2,786
Pre-tax income/(loss):
Private Client Group	$	439	$	434
Capital Markets	3		(16)
Asset Management	93		80
Bank	92		136
Other	3		18
Total pre-tax income	$	630	$	652

No individual client accounted for more than ten percent of revenues in any of the periods presented.

The following table presents our net interest income on a segment basis.


	Three months ended December 31,
$ in millions	2023		2022
Net interest income:
Private Client Group	$	92	$	87
Capital Markets	1		—
Asset Management	3		2
Bank	426		491
Other	24		6
Net interest income	$	546	$	586

The following table presents our total assets on a segment basis.


$ in millions	December 31, 2023		September 30, 2023
Total assets:
Private Client Group	$	12,744	$	12,375
Capital Markets	2,732		3,087
Asset Management	569		567
Bank	61,517		60,041
Other	2,568		2,290
Total	$	80,130	$	78,360


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited)						Index

The following table presents goodwill, which was included in our total assets, on a segment basis.


$ in millions	December 31, 2023		September 30, 2023
Goodwill:
Private Client Group	$	571	$	564
Capital Markets	275		275
Asset Management	69		69
Bank	529		529
Total	$	1,444	$	1,437

We have operations in the U.S., Canada, and Europe. The vast majority of our long-lived assets are located in the U.S. The following table presents our net revenues and pre-tax income/(loss) classified by major geographic area in which they were earned.


	Three months ended December 31,
$ in millions	2023		2022
Net revenues:
U.S.	$	2,761	$	2,540
Canada	139		134
Europe	113		112
Total	$	3,013	$	2,786
Pre-tax income/(loss):
U.S.	$	605	$	609
Canada	27		31
Europe	(2)		12
Total	$	630	$	652

The following table presents our total assets by major geographic area in which they were held.


$ in millions	December 31, 2023		September 30, 2023
Total assets:
U.S.	$	74,319	$	72,506
Canada	3,382		3,404
Europe	2,429		2,450
Total	$	80,130	$	78,360

The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held.


$ in millions	December 31, 2023		September 30, 2023
Goodwill:
U.S.	$	1,250	$	1,250
Canada	25		25
Europe	169		162
Total	$	1,444	$	1,437


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES						Index

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