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	March 31, 2024		September 30, 2023
Assets:
Cash and cash equivalents	$	10,001	$	9,313
Assets segregated for regulatory purposes and restricted cash	3,705		3,235
Collateralized agreements	727		418
Financial instruments, at fair value:
Trading assets ($1,257 and $1,062 pledged as collateral)	1,434		1,187
Available-for-sale securities ($20 and $22 pledged as collateral)	9,031		9,181
Derivative assets	206		265
Other investments ($6 and $7 pledged as collateral)	306		306
Brokerage client receivables, net	2,782		2,525
Other receivables, net	1,999		1,608
Bank loans, net	44,099		43,775
Loans to financial advisors, net	1,190		1,136
Deferred income taxes, net	656		711
Goodwill and identifiable intangible assets, net	1,894		1,907
Other assets	3,202		2,793
Total assets	$	81,232	$	78,360

Liabilities and shareholders’ equity:
Bank deposits	$	54,843	$	54,199
Collateralized financings	955		337
Financial instrument liabilities, at fair value:
Trading liabilities	904		716
Derivative liabilities	365		490
Brokerage client payables	6,038		5,447
Accrued compensation, commissions and benefits	1,757		1,914
Other payables	2,053		1,931
Other borrowings	1,299		1,100
Senior notes payable	2,039		2,039
Total liabilities	70,253		68,173
Commitments and contingencies (see Note 16)
Shareholders’ equity
Preferred stock	79		79
Common stock; $.01 par value; 650,000,000 shares authorized; 249,799,231 shares issued and 207,318,494 shares outstanding as of March 31, 2024; 248,728,805 shares issued and 208,769,095 shares outstanding as of September 30, 2023	2		2
Additional paid-in capital	3,186		3,143
Retained earnings	10,988		10,213
Treasury stock, at cost; 42,480,737 and 39,959,710 common shares as of March 31, 2024 and September 30, 2023, respectively	(2,547)		(2,252)
Accumulated other comprehensive loss	(724)		(971)
Total equity attributable to Raymond James Financial, Inc.	10,984		10,214
Noncontrolling interests	(5)		(27)
Total shareholders’ equity	10,979		10,187
Total liabilities and shareholders’ equity	$	81,232	$	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 March 31,				Six months ended March 31,
in millions, except per share amounts	2024		2023		2024		2023
Revenues:
Asset management and related administrative fees	$	1,516	$	1,302	$	2,923	$	2,544
Brokerage revenues:
Securities commissions	414		369		797		721
Principal transactions	114		127		253		259
Total brokerage revenues	528		496		1,050		980
Account and service fees	335		258		654		547
Investment banking	179		154		360		295
Interest income	1,049		915		2,102		1,742
Other	31		32		69		76
Total revenues	3,638		3,157		7,158		6,184
Interest expense	(520)		(284)		(1,027)		(525)
Net revenues	3,118		2,873		6,131		5,659
Non-interest expenses:
Compensation, commissions and benefits	2,043		1,820		3,964		3,556
Non-compensation expenses:
Communications and information processing	165		153		315		292
Occupancy and equipment	73		68		145		134
Business development	60		54		121		110
Investment sub-advisory fees	44		36		84		70
Professional fees	33		38		65		70
Bank loan provision for credit losses	21		28		33		42


Other	70		119		165		176
Total non-compensation expenses	466		496		928		894
Total non-interest expenses	2,509		2,316		4,892		4,450
Pre-tax income	609		557		1,239		1,209
Provision for income taxes	133		130		265		273
Net income	476		427		974		936
Preferred stock dividends	2		2		3		4
Net income available to common shareholders	$	474	$	425	$	971	$	932

Earnings per common share – basic	$	2.27	$	1.97	$	4.65	$	4.33
Earnings per common share – diluted	$	2.22	$	1.93	$	4.54	$	4.23
Weighted-average common shares outstanding – basic	208.3		214.3		208.4		214.5
Weighted-average common and common equivalent shares outstanding – diluted	213.4		219.2		213.5		219.7

Net income	$	476	$	427	$	974	$	936
Other comprehensive income/(loss), net of tax:
Available-for-sale securities	(26)		97		244		144
Currency translations, net of the impact of net investment hedges	(11)		7		18		53
Cash flow hedges	6		(11)		(15)		(13)
Total other comprehensive income/(loss), net of tax	(31)		93		247		184
Total comprehensive income	$	445	$	520	$	1,221	$	1,120

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 March 31,				Six months ended March 31,
$ in millions, except per share amounts	2024		2023		2024		2023
Preferred stock:
Balance beginning of period	$	79	$	120	$	79	$	120

Share issuances	—		—		—		—

Balance end of period	79		120		79		120

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

Additional paid-in capital:
Balance beginning of period	3,158		2,975		3,143		2,987


Employee stock purchases	14		15		22		22
Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures	(41)		(11)		(123)		(110)
Share-based compensation amortization	55		56		144		136
Balance end of period	3,186		3,035		3,186		3,035

Retained earnings:
Balance beginning of period	10,609		9,254		10,213		8,843
Net income attributable to Raymond James Financial, Inc.	476		427		974		936
Common and preferred stock cash dividends declared (see Note 17)	(97)		(91)		(199)		(189)



Balance end of period	10,988		9,590		10,988		9,590

Treasury stock:
Balance beginning of period	(2,365)		(1,604)		(2,252)		(1,512)
Purchases/surrenders	(213)		(358)		(372)		(505)
Reissuances due to vesting of restricted stock units and exercise of stock options	31		8		77		63
Balance end of period	(2,547)		(1,954)		(2,547)		(1,954)

Accumulated other comprehensive loss:
Balance beginning of period	(693)		(891)		(971)		(982)
Other comprehensive income/(loss), net of tax	(31)		93		247		184

Balance end of period	(724)		(798)		(724)		(798)
Total equity attributable to Raymond James Financial, Inc.	$	10,984	$	9,995	$	10,984	$	9,995

Noncontrolling interests:
Balance beginning of period	$	(9)	$	(26)	$	(27)	$	(26)

Consolidations and other	4		—		22		—



Balance end of period	(5)		(26)		(5)		(26)
Total shareholders’ equity	$	10,979	$	9,969	$	10,979	$	9,969

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

Index

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six months ended March 31,
$ in millions	2024		2023
Cash flows from operating activities:
Net income	$	974	$	936
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization	87		81
Deferred income taxes, net	(26)		(4)
Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments	(17)		(23)
Provisions for credit losses and legal and regulatory matters, net	—		78
Share-based compensation expense	147		138
Unrealized gain on company-owned life insurance policies, net of expenses	(162)		(86)

Other	4		(3)
Net change in:

Collateralized agreements, net of collateralized financings	309		186
Loans (provided to) financial advisors, net of repayments	(66)		34
Brokerage client receivables and other receivables, net	(569)		145
Trading instruments, net	(57)		163
Derivative instruments, net	(85)		(122)
Other assets	(33)		(65)
Brokerage client payables and other payables	583		(4,892)
Accrued compensation, commissions and benefits	(160)		(332)
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale	5		6
Net cash provided by/(used in) operating activities	934		(3,760)

Cash flows from investing activities:
Increase in bank loans, net	(470)		(621)
Proceeds from sales of loans held for investment	164		142

Purchases of available-for-sale securities	(348)		(325)
Available-for-sale securities maturations, repayments and redemptions	733		639


Additions to property and equipment	(99)		(69)
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock, net	(1)		(35)


Investment in solar tax credit equity investment	(15)		—
Purchases of other investments, net	—		(6)
Other investing activities, net	(73)		(44)
Net cash used in investing activities	(109)		(319)

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

Index


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six months ended March 31,
$ in millions	2024		2023
Cash flows from financing activities:


Increase in bank deposits	644		2,872
Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements	(412)		(558)
Dividends on common and preferred stock	(193)		(174)
Exercise of stock options and employee stock purchases	28		25

Proceeds from Federal Home Loan Bank advances	750		1,650
Repayments of Federal Home Loan Bank advances and other borrowed funds	(750)		(1,291)
Proceeds from short-term borrowings, net	200		—
Other financing, net	(1)		(2)
Net cash provided by financing activities	266		2,522

Currency adjustment:
Effect of exchange rate changes on cash and cash equivalents, including those segregated for regulatory purposes	67		258
Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash	1,158		(1,299)
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	$	13,706	$	13,360

Cash and cash equivalents	$	10,001	$	8,663
Cash and cash equivalents segregated for regulatory purposes and restricted cash	3,705		4,697
Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period	$	13,706	$	13,360

Supplemental disclosures of cash flow information:
Cash paid for interest	$	1,049	$	483
Cash paid for income taxes, net	$	373	$	389
Cash outflows for lease liabilities	$	60	$	60
Non-cash right-of-use assets recorded for new and modified leases	$	25	$	42

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)

March 31, 2024

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 and six months ended March 31, 2024, 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 section.

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 March 31, 2024
Assets at fair value on a recurring basis:

Trading assets:
Municipal and provincial obligations	$	—	$	266	$	—	$	—	$	266
Corporate obligations	20		673		—		—		693
Government and agency obligations	35		152		—		—		187
Agency mortgage-backed securities (“MBS”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABS”)	—		198		—		—		198
Non-agency CMOs and ABS	—		67		—		—		67
Total debt securities	55		1,356		—		—		1,411
Equity securities	10		3		—		—		13
Brokered certificates of deposit	—		6		—		—		6
Other	—		—		4		—		4
Total trading assets	65		1,365		4		—		1,434
Available-for-sale securities (1)	1,180		7,851		—		—		9,031
Derivative assets:
Interest rate	4		403		—		(202)		205


Foreign exchange	—		1		—		—		1

Total derivative assets	4		404		—		(202)		206

All other investments:
Government and agency obligations (2)	71		—		—		—		71
Other	106		1		29		—		136
Total all other investments	177		1		29		—		207
Other assets - client-owned fractional shares	119		—		—		—		119
Subtotal	1,545		9,621		33		(202)		10,997
Other investments - private equity - measured at net asset value (“NAV”)									99
Total assets at fair value on a recurring basis	$	1,545	$	9,621	$	33	$	(202)	$	11,096

Liabilities at fair value on a recurring basis:
Trading liabilities:
Municipal and provincial obligations	$	6	$	—	$	—	$	—	$	6
Corporate obligations	—		583		—		—		583
Government and agency obligations	231		1		—		—		232
Agency MBS and CMOs	—		58		—		—		58

Total debt securities	237		642		—		—		879
Equity securities	25		—		—		—		25

Total trading liabilities	262		642		—		—		904
Derivative liabilities:
Interest rate	4		441		—		(85)		360


Foreign exchange	—		5		—		—		5

Total derivative liabilities	4		446		—		(85)		365
Other payables - repurchase liabilities related to client-owned fractional shares	119		—		—		—		119
Total liabilities at fair value on a recurring basis	$	385	$	1,088	$	—	$	(85)	$	1,388


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 March 31, 2024 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		$	—
Total gains/(losses) included in earnings	—		—			—
Purchases and contributions	17		—			—
Sales and distributions	(14)		—			—
Transfers:
Into Level 3	—		—			—
Out of Level 3	—		—			—
Fair value end of period	$	4	$	29		$	—
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period	$	—	$	—		$	—


Six months ended March 31, 2024 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	29		—			—
Sales and distributions	(29)		—			—
Transfers:
Into Level 3	—		—			—
Out of Level 3	—		—			—
Fair value end of period	$	4	$	29		$	—
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period	$	—	$	(1)		$	—


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


Three months ended March 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	$	6	$	30		$	(4)
Total gains/(losses) included in earnings	—		(2)			—
Purchases and contributions	11		—			—
Sales and distributions	(14)		—			—
Transfers:
Into Level 3	—		—			—
Out of Level 3	—		—			—
Fair value end of period	$	3	$	28		$	(4)
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period	$	—	$	(2)		$	—


Six months ended March 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	$	1	$	29		$	(3)
Total gains/(losses) included in earnings	—		(1)			(1)
Purchases and contributions	36		—			—
Sales, distributions, and deconsolidations	(34)		—			—
Transfers:
Into Level 3	—		—			—
Out of Level 3	—		—			—
Fair value end of period	$	3	$	28		$	(4)
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period	$	—	$	(1)		$	(1)

As of both March 31, 2024 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 March 31, 2024 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 March 31, 2024 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
March 31, 2024
Private equity investments measured at NAV	$	99	$	26
Private equity investments not measured at NAV	7
Total private equity investments	$	106

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)
March 31, 2024
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	$	—	$	125	$	125	Collateral or discounted cash flow (1)	Recovery rate	33% - 59% (56%)
Loans held for sale	$	41	$	—	$	41	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 March 31, 2024 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
March 31, 2024
Financial assets:
Bank loans, net	$	105	$	42,877	$	42,982	$	43,923
Financial liabilities:
Bank deposits - certificates of deposit	$	2,465	$	—	$	2,465	$	2,471
Other borrowings - subordinated notes payable	$	95	$	—	$	95	$	99
Senior notes payable	$	1,798	$	—	$	1,798	$	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
March 31, 2024
Agency residential MBS	$	4,522	$	1	$	(476)	$	4,047
Agency commercial MBS	1,450		—		(165)		1,285
Agency CMOs	1,401		—		(216)		1,185
Other agency obligations	658		—		(17)		641
Non-agency residential MBS	582		1		(44)		539
U.S. Treasuries	1,188		—		(8)		1,180
Corporate bonds	140		1		(5)		136
Other	18		—		—		18
Total available-for-sale securities	$	9,959	$	3	$	(931)	$	9,031

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 $28 million of accrued interest on available-for-sale securities as of both March 31, 2024 and September 30, 2023, 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 3.9 years as of March 31, 2024.


	March 31, 2024
$ 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	$	—		$	112		$	1,917		$	2,493		$	4,522
Fair value	$	—		$	109		$	1,740		$	2,198		$	4,047
Weighted-average yield	—		%	2.52		%	1.31		%	2.02		%	1.73		%
Agency commercial MBS
Amortized cost	$	38		$	950		$	413		$	49		$	1,450
Fair value	$	38		$	867		$	340		$	40		$	1,285
Weighted-average yield	3.48		%	1.57		%	1.16		%	1.87		%	1.51		%
Agency CMOs
Amortized cost	$	—		$	6		$	37		$	1,358		$	1,401
Fair value	$	—		$	6		$	33		$	1,146		$	1,185
Weighted-average yield	—		%	2.46		%	1.50		%	1.69		%	1.69		%
Other agency obligations
Amortized cost	$	165		$	403		$	80		$	10		$	658
Fair value	$	161		$	395		$	76		$	9		$	641
Weighted-average yield	2.28		%	3.62		%	3.43		%	3.07		%	3.25		%
Non-agency residential MBS
Amortized cost	$	—		$	—		$	—		$	582		$	582
Fair value	$	—		$	—		$	—		$	539		$	539
Weighted-average yield	—		%	—		%	—		%	4.42		%	4.42		%
U.S. Treasuries
Amortized cost	$	847		$	341		$	—		$	—		$	1,188
Fair value	$	840		$	340		$	—		$	—		$	1,180
Weighted-average yield	3.07		%	5.30		%	—		%	—		%	3.71		%
Corporate bonds
Amortized cost	$	33		$	84		$	23		$	—		$	140
Fair value	$	33		$	82		$	21		$	—		$	136
Weighted-average yield	4.68		%	5.66		%	5.06		%	—		%	5.33		%
Other
Amortized cost	$	—		$	5		$	5		$	8		$	18
Fair value	$	—		$	4		$	5		$	9		$	18
Weighted-average yield	—		%	7.37		%	5.21		%	8.28		%	7.24		%
Total available-for-sale securities
Amortized cost	$	1,083		$	1,901		$	2,475		$	4,500		$	9,959
Fair value	$	1,072		$	1,803		$	2,215		$	3,941		$	9,031
Weighted-average yield	3.01		%	2.93		%	1.40		%	2.24		%	2.25		%


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
March 31, 2024
Agency residential MBS	$	50	$	(1)	$	3,907	$	(475)	$	3,957	$	(476)
Agency commercial MBS	—		—		1,282		(165)		1,282		(165)
Agency CMOs	10		—		1,155		(216)		1,165		(216)
Other agency obligations	—		—		641		(17)		641		(17)
Non-agency residential MBS	32		—		433		(44)		465		(44)
U.S. Treasuries	95		—		760		(8)		855		(8)
Corporate bonds	—		—		87		(5)		87		(5)
Other	—		—		9		—		9		—
Total	$	187	$	(1)	$	8,274	$	(930)	$	8,461	$	(931)

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 March 31, 2024, of the 1,035 available-for-sale securities in an unrealized loss position, 19 were in a continuous unrealized loss position for less than 12 months and 1,016 securities were in a continuous unrealized loss position for greater than 12 months.

At March 31, 2024, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of $4.51 billion and $2.71 billion, respectively, and fair values of $4.01 billion and $2.38 billion, respectively.

During the three and six months ended March 31, 2024 and 2023, 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.


	March 31, 2024						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)	$	402	$	445	$	18,747	$	509	$	576	$	18,270

Foreign exchange	1		2		1,101		4		2		1,191
Other	—		—		943		—		—		608
Subtotal	403		447		20,791		513		578		20,069
Derivatives designated as hedging instruments
Interest rate	5		—		1,300		8		—		1,200
Foreign exchange	—		3		1,198		5		—		1,172
Subtotal	5		3		2,498		13		—		2,372
Total gross fair value/notional amount	408		450		$	23,289	526		578		$	22,441
Offset on the Condensed Consolidated Statements of Financial Condition
Counterparty netting	(32)		(32)				(29)		(29)
Cash collateral netting	(170)		(53)				(232)		(59)
Total amounts offset	(202)		(85)				(261)		(88)
Net amounts presented on the Condensed Consolidated Statements of Financial Condition	$	206	$	365			$	265	$	490
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
Financial instruments	(99)		—				(131)		—
Total	$	107	$	365			$	134	$	490

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

The following table details the gains/(losses) included in accumulated other comprehensive loss (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the period. See Note 17 for additional information.


	Three months ended March 31,				Six months ended March 31,
$ in millions	2024		2023		2024		2023
Interest rate (cash flow hedges)	$	6	$	(11)	$	(15)	$	(13)
Foreign exchange (net investment hedges)	22		(3)		—		(17)
Total gains/(losses) included in AOCI, net of taxes	$	28	$	(14)	$	(15)	$	(30)

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the three and six months ended March 31, 2024 and 2023. We expect to reclassify $30 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 March 31,						Six months ended March 31,
	Location of gain/(loss)		2024			2023			2024			2023
Interest rate		Principal transactions/other revenues		$	3		$	5		$	4		$	11
Foreign exchange		Other revenues		$	25		$	(6)		$	(8)		$	(36)
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 $2 million as of March 31, 2024 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
March 31, 2024
Gross amounts of recognized assets/liabilities	$	449	$	278	$	727	$	371	$	584	$	955
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	—		—		—		—		—		—
Net amounts included in the Condensed Consolidated Statements of Financial Condition	449		278		727		371		584		955
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	(449)		(271)		(720)		(371)		(565)		(936)
Net amounts	$	—	$	7	$	7	$	—	$	19	$	19

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.

Repurchase agreements and securities loaned accounted for as secured borrowings

The following table presents our repurchase agreements and securities lending transactions accounted for as secured borrowings by type of collateral. Such secured borrowings have no stated maturity and are generally overnight and continuous.


$ in millions	March 31, 2024		September 30, 2023
Repurchase agreements:
Government and agency obligations	$	260	$	122
Agency MBS and agency CMOs	111		35
Total repurchase agreements	$	371	$	157
Securities loaned:
Equity securities	584		180
Total collateralized financings	$	955	$	337


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

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	March 31, 2024		September 30, 2023
Collateral we received that was available to be delivered or repledged	$	3,464	$	3,267
Collateral that we delivered or repledged	$	1,725	$	730

Encumbered assets

We also pledge certain of our assets, primarily trading assets, to collateralize repurchase agreements or other secured borrowings, maintain lines of credit, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments. The following table presents information about our assets that have been pledged for such purposes.


$ in millions	March 31, 2024		September 30, 2023
Had the right to deliver or repledge	$	1,283	$	1,091
Did not have the right to deliver or repledge	$	64	$	63

We also 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. The FHLB does not have the ability to sell or repledge such securities until they are borrowed against. 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 FRB does not have the ability to sell or repledge such securities. For additional information regarding our outstanding FHLB advances see Note 14. The following table presents information about our assets that have been pledged with the FHLB or FRB.


$ in millions	March 31, 2024		September 30, 2023
Assets pledged with the FHLB or FRB:
Available-for-sale securities	$	3,796	$	3,897
Bank loans	10,483		10,166
Total assets pledged with the FHLB or FRB	$	14,279	$	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	March 31, 2024			September 30, 2023
SBL	$	14,610		$	14,606
C&I loans	10,190			10,406
CRE loans	7,462			7,221
REIT loans	1,701			1,668
Residential mortgage loans	9,016			8,662
Tax-exempt loans	1,445			1,541
Total loans held for investment	44,424			44,104
Held for sale loans	146			145
Total loans held for sale and investment	44,570			44,249
Allowance for credit losses	(471)			(474)
Bank loans, net (1)	$	44,099		$	43,775

ACL as a % of total loans held for investment	1.06		%	1.07		%
Accrued interest receivable on bank loans (included in “Other receivables, net”)	$	212		$	200

(1)Bank loans, net as of March 31, 2024 and September 30, 2023 are presented net of $28 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. (“TriState Capital”) 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 14 for additional information regarding borrowings from the FHLB.

Held for sale loans

We originated or purchased $552 million and $993 million of loans held for sale during the three and six months ended March 31, 2024, respectively, and $624 million and $1.43 billion during the three and six months ended March 31, 2023, 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 $141 million and $243 million during the three and six months ended March 31, 2024, respectively, and $155 million and $353 million during the three and six months ended March 31, 2023, respectively. Net gains resulting from such sales were insignificant for each of the three and six months ended March 31, 2024 and 2023.


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 March 31, 2024
Purchases	$	314	$	—	$	—	$	77	$	391
Sales	$	44	$	—	$	9	$	—	$	53
Six months ended March 31, 2024
Purchases	$	520	$	—	$	—	$	122	$	642
Sales	$	163	$	—	$	9	$	—	$	172
Three months ended March 31, 2023
Purchases	$	194	$	—	$	—	$	110	$	304
Sales	$	147	$	—	$	—	$	—	$	147
Six months ended March 31, 2023
Purchases	$	357	$	39	$	24	$	300	$	720
Sales	$	147	$	—	$	—	$	—	$	147

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
March 31, 2024
SBL	$	—	$	—	$	—	$	—	$	—	$	14,610	$	14,610
C&I loans	—		—		—		66		—		10,124		10,190
CRE loans	2		—		2		103		11		7,346		7,462
REIT loans	—		—		—		—		—		1,701		1,701
Residential mortgage loans	3		—		3		—		7		9,006		9,016
Tax-exempt loans	—		—		—		—		—		1,445		1,445
Total loans held for investment	$	5	$	—	$	5	$	169	$	18	$	44,232	$	44,424

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 $103 million and $96 million at March 31, 2024 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. Modifications of loans to borrowers experiencing financial difficulty are designed to reduce our loss exposure while providing borrowers with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Loan modifications to borrowers experiencing financial difficulty typically involve principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (i.e., payment or maturity forbearance greater than six months), or a term extension, or any combination thereof. Modified loans to


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

borrowers experiencing financial difficulty are subject to our nonaccrual policies. Loans to borrowers experiencing financial difficulty which were modified during the three and six months ended March 31, 2024 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.

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both March 31, 2024 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.


$ in millions	Nature of collateral	March 31, 2024		September 30, 2023

C&I loans	Commercial real estate and other business assets	$	9	$	11
CRE loans	Office, multi-family residential, healthcare, medical office, and industrial real estate	$	159	$	47

Residential mortgage loans	Single family homes	$	4	$	5

CRE collateral dependent loans as of March 31, 2024 included certain loans that were placed on nonaccrual status with an associated allowance during the six months ended March 31, 2024. 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 March 31, 2024 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 six months ended March 31, 2024
	Loans by origination fiscal year
$ in millions	2024		2023		2022		2021		2020		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	49	$	25	$	17	$	85	$	34	$	76	$	14,310	$	14,596
Special mention	—		—		—		—		—		—		—		—
Substandard (1)	14		—		—		—		—		—		—		14
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	63	$	25	$	17	$	85	$	34	$	76	$	14,310	$	14,610
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



C&I loans
Risk rating:
Pass	$	222	$	722	$	1,203	$	915	$	867	$	3,555	$	2,540	$	10,024
Special mention	—		—		5		—		39		—		1		45
Substandard	—		—		—		29		55		21		16		121
Doubtful	—		—		—		—		—		—		—		—
Total C&I loans	$	222	$	722	$	1,208	$	944	$	961	$	3,576	$	2,557	$	10,190
Gross charge-offs	$	—	$	—	$	—	$	1	$	1	$	29	$	—	$	31



CRE loans
Risk rating:
Pass	$	312	$	1,217	$	2,237	$	1,093	$	691	$	1,303	$	351	$	7,204
Special mention	—		5		26		—		14		20		—		65
Substandard	—		—		9		5		57		105		17		193
Doubtful	—		—		—		—		—		—		—		—
Total CRE loans	$	312	$	1,222	$	2,272	$	1,098	$	762	$	1,428	$	368	$	7,462
Gross charge offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	7



REIT loans
Risk rating:
Pass	$	83	$	217	$	183	$	221	$	102	$	253	$	567	$	1,626
Special mention	—		12		—		—		—		12		51		75
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	83	$	229	$	183	$	221	$	102	$	265	$	618	$	1,701
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Residential mortgage loans
Risk rating:
Pass	$	607	$	1,720	$	2,823	$	1,575	$	884	$	1,349	$	34	$	8,992
Special mention	—		—		3		—		—		6		—		9
Substandard	—		—		3		—		—		12		—		15
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	607	$	1,720	$	2,829	$	1,575	$	884	$	1,367	$	34	$	9,016
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Tax-exempt loans
Risk rating:
Pass	$	62	$	57	$	266	$	156	$	54	$	850	$	—	$	1,445
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	62	$	57	$	266	$	156	$	54	$	850	$	—	$	1,445
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(1)As of March 31, 2024, 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.


	March 31, 2024
	Loans by origination fiscal year
$ in millions	2024		2023		2022		2021		2020		Prior		Revolving loans		Total
FICO score:
Below 600	$	—	$	4	$	11	$	3	$	3	$	15	$	—	$	36
600 - 699	38		82		100		64		32		77		3		396
700 - 799	463		1,259		1,562		862		513		748		22		5,429
800 +	106		371		1,156		644		335		523		8		3,143
FICO score not available	—		4		—		2		1		4		1		12
Total	$	607	$	1,720	$	2,829	$	1,575	$	884	$	1,367	$	34	$	9,016

LTV ratio:
Below 80%	$	442	$	1,212	$	2,170	$	1,231	$	685	$	1,044	$	33	$	6,817
80%+	165		508		659		344		199		323		1		2,199
Total	$	607	$	1,720	$	2,829	$	1,575	$	884	$	1,367	$	34	$	9,016


	September 30, 2023
	Loans by origination fiscal year
$ in millions	2023		2022		2021		2020		2019		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 March 31, 2024
Balance at beginning of period	$	7		$	211		$	174		$	17		$	68		$	2		$	479


Provision/(benefit) for credit losses	(1)			8			13			2			(1)			—			21

Net (charge-offs)/recoveries:
Charge-offs	—			(25)			(5)			—			—			—			(30)
Recoveries	—			2			—			—			—			—			2
Net (charge-offs)/recoveries	—			(23)			(5)			—			—			—			(28)
Foreign exchange translation adjustment	—			—			(1)			—			—			—			(1)
Balance at end of period	$	6		$	196		$	181		$	19		$	67		$	2		$	471

Six months ended March 31, 2024
Balance at beginning of period	$	7		$	214		$	161		$	16		$	74		$	2		$	474


Provision/(benefit) for credit losses	(1)			11			27			3			(7)			—			33

Net (charge-offs)/recoveries:
Charge-offs	—			(31)			(7)			—			—			—			(38)
Recoveries	—			2			—			—			—			—			2
Net (charge-offs)/recoveries	—			(29)			(7)			—			—			—			(36)
Foreign exchange translation adjustment	—			—			—			—			—			—			—
Balance at end of period	$	6		$	196		$	181		$	19		$	67		$	2		$	471

ACL by loan portfolio segment as a % of total ACL	1.3		%	41.7		%	38.4		%	4.0		%	14.2		%	0.4		%	100.0		%

Three months ended March 31, 2023
Balance at beginning of period	$	4		$	222		$	91		$	15		$	74		$	2		$	408



Provision/(benefit) for credit losses	1			18			9			—			—			—			28

Net (charge-offs)/recoveries:
Charge-offs	—			(20)			—			—			—			—			(20)
Recoveries	—			—			—			—			—			—			—
Net (charge-offs)/recoveries	—			(20)			—			—			—			—			(20)
Foreign exchange translation adjustment	—			(1)			—			—			—			—			(1)
Balance at end of period	$	5		$	219		$	100		$	15		$	74		$	2		$	415

Six months ended March 31, 2023
Balance at beginning of period	$	3		$	226		$	87		$	21		$	57		$	2		$	396



Provision/(benefit) for credit losses	2			18			11			(6)			17			—			42

Net (charge-offs)/recoveries:
Charge-offs	—			(24)			(1)			—			—			—			(25)
Recoveries	—			—			3			—			—			—			3
Net (charge-offs)/recoveries	—			(24)			2			—			—			—			(22)
Foreign exchange translation adjustment	—			(1)			—			—			—			—			(1)
Balance at end of period	$	5		$	219		$	100		$	15		$	74		$	2		$	415

ACL by loan portfolio segment as a % of total ACL	1.2		%	52.8		%	24.1		%	3.6		%	17.8		%	0.5		%	100.0		%

The allowance for credit losses on held for investment bank loans decreased $8 million and $3 million during the three and six months ended March 31, 2024, respectively, primarily resulting from provisions for credit losses of $21 million and $33 million, respectively, partially offset by net charge-offs of certain loans during the period. The provision for credit losses for the three and six months ended March 31, 2024 primarily reflected the impacts of specific reserves, loan downgrades and charge-offs in our C&I and CRE loan portfolios, partially offset by the favorable impacts of an improved economic forecast and net loan payments.

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 at both March 31, 2024 and December 31, 2023 and $22 million at September 30, 2023.


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

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	March 31, 2024			September 30, 2023
Affiliated with the firm as of period-end (1)	$	1,212		$	1,158
No longer affiliated with the firm as of period-end (2)	11			10
Total loans to financial advisors	1,223			1,168
Allowance for credit losses	(33)			(32)
Loans to financial advisors, net	$	1,190		$	1,136
Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”)	$	7		$	6
Allowance for credit losses as a percent of total loans to financial advisors	2.70		%	2.74		%

(1)These loans were predominantly current.

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

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
March 31, 2024

LIHTC funds	$	152	$	75
Restricted Stock Trust Fund	28		28
Total	$	180	$	103

September 30, 2023

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


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

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	March 31, 2024		September 30, 2023
Assets:
Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash	$	14	$	5


Other assets	138		46
Total assets	$	152	$	51
Liabilities:
Other payables	$	53	$	—

Total liabilities	$	53	$	—
Noncontrolling interests	$	(5)	$	(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.

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.


	March 31, 2024						September 30, 2023
$ in millions	Aggregate assets		Aggregate liabilities		Our risk of loss		Aggregate assets		Aggregate liabilities		Our risk of loss
LIHTC funds	$	9,026	$	3,041	$	67	$	8,451	$	2,964	$	113
Private Equity Interests	2,577		782		99		2,591		655		101
Other	182		70		3		201		84		3
Total	$	11,785	$	3,893	$	169	$	11,243	$	3,703	$	217

NOTE 10 - GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET

Our goodwill and identifiable intangible assets result from various acquisitions. See Notes 2 and 11 of our 2023 Form 10-K for additional information about our goodwill and intangible assets, including the related accounting policies.

We perform goodwill and indefinite-lived intangible asset impairment testing on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value or indicate that the asset is impaired. We performed our latest annual impairment testing for our goodwill and indefinite-lived intangible assets as of our January 1, 2024 evaluation date, evaluating balances as of December 31, 2023. In that testing, we performed a qualitative impairment assessment for each of our reporting units that had goodwill, as well as for our indefinite-lived intangible assets.

Our qualitative assessments considered macroeconomic indicators and industry and market considerations, such as trends in equity and fixed income markets, gross domestic product, labor markets, interest rates, and housing markets. We also considered regulatory changes, as well as company-specific factors such as market capitalization, reporting unit specific results, and changes in key personnel and strategy. Changes in these indicators, and our ability to respond to such changes, may trigger the need for impairment testing at a point other than our annual assessment date. Based upon the outcome of our qualitative assessments, no impairment was identified. No events have occurred since such assessments that would cause us to update this impairment testing.


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

NOTE 11 - 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	March 31, 2024		September 30, 2023
Investments in company-owned life insurance policies	$	1,312	$	1,110
Property and equipment, net	596		561
Lease right-of-use (“ROU”) assets	538		560
Prepaid expenses	258		209

Investments in FHLB and FRB stock	115		114
Client-owned fractional shares	119		98
All other	264		141
Total other assets	$	3,202	$	2,793

See Note 13 of our 2023 Form 10-K for additional information regarding our property and equipment and Note 12 of this Form 10-Q and Note 14 of our 2023 Form 10-K for additional information regarding our leases.

NOTE 12 – 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	March 31, 2024		September 30, 2023
ROU assets (included in “Other assets”)	$	538	$	560
Lease liabilities (included in “Other payables”)	$	528	$	539

Lease liabilities as of March 31, 2024 excluded $37 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 March 31,				Six months ended March 31,
$ in millions	2024		2023		2024		2023
Lease costs	$	34	$	32	$	69	$	63
Variable lease costs	$	10	$	8	$	19	$	15

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 13 – 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 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.


	March 31, 2024				September 30, 2023
$ in millions	Balance		Weighted-average rate		Balance		Weighted-average rate
Money market and savings accounts	$	31,094	2.11	%	$	32,268	1.85	%
Interest-bearing demand deposits	20,784		4.97	%	18,376		4.98	%
Certificates of deposit	2,471		4.68	%	2,831		4.41	%
Non-interest-bearing demand deposits	494		—		724		—
Total bank deposits	$	54,843	3.32	%	$	54,199	3.06	%

Money market and savings accounts in the preceding table included $23.41 billion and $25.36 billion as of March 31, 2024 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 $14.54 billion and $13.59 billion of deposits as of March 31, 2024 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 end.


$ in millions	March 31, 2024			September 30, 2023
FDIC-insured bank deposits	$	48,268		$	48,344
Bank deposits exceeding FDIC insurance limit (1) (2)	6,575			5,855
Total bank deposits	$	54,843		$	54,199
FDIC-insured bank deposits as a % of total bank deposits	88		%	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 $888 million and $764 million as of March 31, 2024 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 March 31, 2024.


$ in millions	March 31, 2024
Three months or less	$	72
Over three through six months	38
Over six through twelve months	42
Over twelve months	13
Total certificates of deposit that exceeded the FDIC insurance limit (1)	$	165

(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 March 31,				Six months ended March 31,
$ in millions	2024		2023		2024		2023
Money market and savings accounts	$	159	$	128	$	315	$	245
Interest-bearing demand deposits	252		62		495		109
Certificates of deposit	30		16		62		24
Total interest expense on deposits	$	441	$	206	$	872	$	378

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 14 – OTHER BORROWINGS

The following table details the components of our other borrowings.


	March 31, 2024					September 30, 2023
$ in millions	Weighted-average interest rate		Maturity date	Balance		Weighted-average interest rate		Maturity date	Balance
FHLB advances:
Floating rate - term	5.65	%	March 2025 - June 2025	$	650	5.62	%	December 2023 - March 2025	$	850

Fixed rate	4.77	%	June 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
Unsecured lines of credit	7.07	%	Overnight	200		N/A		N/A	—
Total other borrowings				$	1,299				$	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 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 March 31, 2024, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $98 million. Our subordinated notes incur interest at a fixed rate of 5.75% until May 2025 and thereafter at a variable interest rate equal to 3-month CME Term 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 March 31, 2024 and 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 March 31, 2024, the Variable Rate Facility Fee, which is applied to the committed amount, was 0.125% per annum.


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

Other

In addition to the Credit Facility, we maintain various secured and unsecured lines of credit, which are generally utilized to finance certain fixed income trading instruments or for cash management purposes. Borrowings during the period were generally day-to-day, and we had $200 million outstanding as of March 31, 2024. The interest rates for these arrangements are variable and are based on a daily bank quoted rate, which may reference SOFR, the federal funds rate, a lender’s prime rate, the Canadian prime rate or another commercially available rate, as applicable.

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

NOTE 15 – 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 21.4% for the six months ended March 31, 2024 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 period related to nontaxable valuation gains associated with our company-owned life insurance policies, compared to that for the fiscal year 2023, as well as a lower amount of nondeductible fines and penalties compared to fiscal year 2023.

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 16 – 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 March 31, 2024, we had two such open underwriting commitments, which were subsequently settled in open market transactions and did not result in any losses.

Lending commitments and other credit-related financial instruments

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


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

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	March 31, 2024		September 30, 2023
SBL and other consumer lines of credit	$	41,269	$	38,791
Commercial lines of credit	$	4,482	$	4,131
Unfunded lending commitments	$	749	$	936
Standby letters of credit	$	125	$	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.

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 or continuing their affiliation with us and meeting certain other conditions outlined in their offer. We had unfunded commitments of $27 million for loans to financial advisors who have met such conditions as of March 31, 2024.

Investment commitments

We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $61 million as of March 31, 2024.

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 March 31, 2024, RJAHI had committed approximately $199 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 12 of this Form 10-Q and for information on the maturities of our lease liabilities see Note 14 of our 2023 Form 10-K.


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

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. As previously disclosed, the firm has been cooperating with the SEC in connection with an investigation of the firm’s compliance with records preservation requirements relating to business communications sent over electronic messaging channels that have not been approved by the firm. The SEC has reportedly been conducting similar investigations of record preservation practices at other financial institutions. We have reached a settlement in principle with the SEC’s Division of Enforcement to resolve this investigation, which will include the payment of a $50 million civil monetary penalty. That amount was accrued within “Other payables” on our Condensed Consolidated Statements of Financial Condition as of March 31, 2024. The settlement is subject to the negotiation of definitive documentation and final approval by the SEC. 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 March 31, 2024, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $30 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.


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

NOTE 17 – 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	March 31, 2024		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 and six months ended March 31, 2024 and 2023. 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 March 31, 2024

Series B Preferred Stock	$	2	$	15.94	$	2	$	15.94

Six months ended March 31, 2024

Series B Preferred Stock	$	3	$	31.88	$	3	$	31.88


Three months ended March 31, 2023
Series A Preferred Stock	$	1	$	16.88	$	1	$	16.88
Series B Preferred Stock	1		$	15.94	1		$	15.94
Total	$	2			$	2
Six months ended March 31, 2023
Series A Preferred Stock	$	2	$	33.76	$	2	$	33.76
Series B Preferred Stock	2		$	31.88	2		$	31.88
Total	$	4			$	4

Common equity

The following table presents the changes in our common shares outstanding for the three and six months ended March 31, 2024 and 2023.


	Three months ended March 31,		Six months ended March 31,
Shares in millions	2024	2023	2024	2023
Balance beginning of period	208.7	215.0	208.8	215.1
Repurchases of common stock under the Board of Directors’ common stock repurchase authorization	(1.7)	(3.7)	(3.1)	(5.0)
Issuances due to vesting of RSUs, employee stock purchases, and exercise of stock options, net of forfeitures	0.3	0.3	1.6	1.5


Balance end of period	207.3	211.6	207.3	211.6

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 20 of this Form 10-Q and Note 23 of our 2023 Form 10-K for additional information on these programs.


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

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 March 31, 2024, we repurchased 1.70 million shares of our common stock for $207 million at an average price of $121.99 per share under the Board of Directors’ common stock repurchase authorization. During the six months ended March 31, 2024, we repurchased 3.10 million shares of our common stock for $357 million at an average price of $114.96 per share. As of March 31, 2024, $1.19 billion remained available under the Board of Directors’ common stock repurchase authorization. Subsequent to March 31, 2024, we repurchased 336 thousand shares, for a cumulative year-to-date repurchase through the date of this Form 10-Q of 3.44 million shares of our common stock for $400 million at an average price of $116.32 per share. After the effect of those repurchases, $1.14 billion remained available under the Board of Directors’ common stock repurchase authorization as of the date of this Form 10-Q.

Common stock dividends

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


	Three months ended March 31,				Six months ended March 31,
	2024		2023		2024		2023
Dividends per common share - declared	$	0.45	$	0.42	$	0.90	$	0.84
Dividends per common share - paid	$	0.45	$	0.42	$	0.87	$	0.76

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 March 31,				Six months ended March 31,
	2024		2023		2024		2023
Dividend payout ratio	20.3	%	21.8	%	19.8	%	19.9	%

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 21 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 March 31, 2024
AOCI as of beginning of period	$	121	$	(165)	$	(44)	$	(672)	$	23	$	(693)
OCI:
OCI before reclassifications and taxes	29		(33)		(4)		(34)		18		(20)
Amounts reclassified from AOCI, before tax	—		—		—		—		(9)		(9)
Pre-tax net OCI	29		(33)		(4)		(34)		9		(29)
Income tax effect	(7)		—		(7)		8		(3)		(2)
OCI for the period, net of tax	22		(33)		(11)		(26)		6		(31)
AOCI as of end of period	$	143	$	(198)	$	(55)	$	(698)	$	29	$	(724)

Six months ended March 31, 2024
AOCI as of beginning of period	$	143	$	(216)	$	(73)	$	(942)	$	44	$	(971)
OCI:
OCI before reclassifications and taxes	—		18		18		324		—		342
Amounts reclassified from AOCI, before tax	—		—		—		—		(19)		(19)
Pre-tax net OCI	—		18		18		324		(19)		323
Income tax effect	—		—		—		(80)		4		(76)
OCI for the period, net of tax	—		18		18		244		(15)		247
AOCI as of end of period	$	143	$	(198)	$	(55)	$	(698)	$	29	$	(724)

Three months ended March 31, 2023
AOCI as of beginning of period	$	139	$	(216)	$	(77)	$	(855)	$	41	$	(891)
OCI:
OCI before reclassifications and taxes	(4)		11		7		126		(7)		126
Amounts reclassified from AOCI, before tax	—		—		—		—		(8)		(8)
Pre-tax net OCI	(4)		11		7		126		(15)		118
Income tax effect	1		(1)		—		(29)		4		(25)
OCI for the period, net of tax	(3)		10		7		97		(11)		93
AOCI as of end of period	$	136	$	(206)	$	(70)	$	(758)	$	30	$	(798)

Six months ended March 31, 2023
AOCI as of beginning of period	$	153	$	(276)	$	(123)	$	(902)	$	43	$	(982)
OCI:
OCI before reclassifications and taxes	(23)		71		48		211		(5)		254
Amounts reclassified from AOCI, before tax	—		—		—		—		(13)		(13)
Pre-tax net OCI	(23)		71		48		211		(18)		241
Income tax effect	6		(1)		5		(67)		5		(57)
OCI for the period, net of tax	(17)		70		53		144		(13)		184
AOCI as of end of period	$	136	$	(206)	$	(70)	$	(758)	$	30	$	(798)

Reclassifications from AOCI to net income, excluding taxes, for the three and six months ended March 31, 2024 and 2023 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 18 – 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 23 of this Form 10-Q for additional information on our segments.


	Three months ended March 31, 2024
$ in millions	Private Client Group		Capital Markets		Asset Management		Bank		Other and intersegment eliminations		Total
Revenues:
Asset management and related administrative fees	$	1,283	$	1	$	242	$	—	$	(10)	$	1,516
Brokerage revenues:
Securities commissions:
Mutual and other fund products	141		1		1		—		—		143
Insurance and annuity products	127		—		—		—		—		127
Equities, exchange-traded funds (“ETFs”) and fixed income products	113		35		—		—		(4)		144
Subtotal securities commissions	381		36		1		—		(4)		414
Principal transactions (1)	26		86		—		2		—		114
Total brokerage revenues	407		122		1		2		(4)		528
Account and service fees:
Mutual fund and annuity service fees	115		—		4		—		—		119
RJBDP fees	366		2		—		—		(208)		160
Client account and other fees	64		1		1		—		(10)		56
Total account and service fees	545		3		5		—		(218)		335
Investment banking:
Merger & acquisition and advisory	—		107		—		—		—		107
Equity underwriting	8		23		—		—		—		31
Debt underwriting	—		41		—		—		—		41
Total investment banking	8		171		—		—		—		179
Other:
Affordable housing investments business revenues	—		22		—		—		—		22
All other (1)	6		—		1		9		(7)		9
Total other	6		22		1		9		(7)		31
Total non-interest revenues	2,249		319		249		11		(239)		2,589
Interest income (1)	122		26		3		868		30		1,049
Total revenues	2,371		345		252		879		(209)		3,638
Interest expense	(30)		(24)		—		(455)		(11)		(520)
Net revenues	$	2,341	$	321	$	252	$	424	$	(220)	$	3,118

(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 March 31, 2023
$ in millions	Private Client Group		Capital Markets		Asset Management		Bank		Other and intersegment eliminations		Total
Revenues:
Asset management and related administrative fees	$	1,102	$	—	$	206	$	—	$	(6)	$	1,302
Brokerage revenues:
Securities commissions:
Mutual and other fund products	135		2		1		—		(1)		137
Insurance and annuity products	113		—		—		—		—		113
Equities, ETFs and fixed income products	88		32		—		—		(1)		119
Subtotal securities commissions	336		34		1		—		(2)		369
Principal transactions (1)	28		96		—		4		(1)		127
Total brokerage revenues	364		130		1		4		(3)		496
Account and service fees:
Mutual fund and annuity service fees	105		—		1		—		(1)		105
RJBDP fees	411		1		—		—		(312)		100
Client account and other fees	56		1		5		—		(9)		53
Total account and service fees	572		2		6		—		(322)		258
Investment banking:
Merger & acquisition and advisory	—		87		—		—		—		87
Equity underwriting	9		29		—		—		—		38
Debt underwriting	—		29		—		—		—		29
Total investment banking	9		145		—		—		—		154
Other:
Affordable housing investments business revenues	—		23		—		—		—		23
All other (1)	9		1		—		6		(7)		9
Total other	9		24		—		6		(7)		32
Total non-interest revenues	2,056		301		213		10		(338)		2,242
Interest income (1)	117		21		3		749		25		915
Total revenues	2,173		322		216		759		(313)		3,157
Interest expense	(29)		(20)		—		(219)		(16)		(284)
Net revenues	$	2,144	$	302	$	216	$	540	$	(329)	$	2,873

(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


	Six months ended March 31, 2024
$ in millions	Private Client Group		Capital Markets		Asset Management		Bank		Other and intersegment eliminations		Total
Revenues:
Asset management and related administrative fees	$	2,474	$	1	$	466	$	—	$	(18)	$	2,923
Brokerage revenues:
Securities commissions:
Mutual and other fund products	277		3		3		—		(3)		280
Insurance and annuity products	252		—		—		—		—		252
Equities, ETFs and fixed income products	202		68		—		—		(5)		265
Subtotal securities commissions	731		71		3		—		(8)		797
Principal transactions (1)	58		191		—		4		—		253
Total brokerage revenues	789		262		3		4		(8)		1,050
Account and service fees:
Mutual fund and annuity service fees	221		—		5		—		(1)		225
RJBDP fees	741		3		—		—		(432)		312
Client account and other fees	129		3		6		—		(21)		117
Total account and service fees	1,091		6		11		—		(454)		654
Investment banking:
Merger & acquisition and advisory	—		225		—		—		—		225
Equity underwriting	19		49		—		—		—		68
Debt underwriting	—		67		—		—		—		67
Total investment banking	19		341		—		—		—		360
Other:
Affordable housing investments business revenues	—		45		—		—		—		45
All other (1)	10		1		1		22		(10)		24
Total other	10		46		1		22		(10)		69
Total non-interest revenues	4,383		656		481		26		(490)		5,056
Interest income (1)	240		49		6		1,740		67		2,102
Total revenues	4,623		705		487		1,766		(423)		7,158
Interest expense	(56)		(46)		—		(901)		(24)		(1,027)
Net revenues	$	4,567	$	659	$	487	$	865	$	(447)	$	6,131

(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


	Six months ended March 31, 2023
$ in millions	Private Client Group		Capital Markets		Asset Management		Bank		Other and intersegment eliminations		Total
Revenues:
Asset management and related administrative fees	$	2,155	$	1	$	403	$	—	$	(15)	$	2,544
Brokerage revenues:
Securities commissions:
Mutual and other fund products	263		3		2		—		(1)		267
Insurance and annuity products	217		—		—		—		—		217
Equities, ETFs and fixed income products	173		65		—		—		(1)		237
Subtotal securities commissions	653		68		2		—		(2)		721
Principal transactions (1)	56		196		—		8		(1)		259
Total brokerage revenues	709		264		2		8		(3)		980
Account and service fees:
Mutual fund and annuity service fees	203		—		1		—		(1)		203
RJBDP fees	816		2		—		—		(581)		237
Client account and other fees	116		3		10		—		(22)		107
Total account and service fees	1,135		5		11		—		(604)		547
Investment banking:
Merger & acquisition and advisory	—		189		—		—		—		189
Equity underwriting	18		44		—		—		(1)		61
Debt underwriting	—		45		—		—		—		45
Total investment banking	18		278		—		—		(1)		295
Other:
Affordable housing investments business revenues	—		47		—		—		—		47
All other (1)	15		1		2		19		(8)		29
Total other	15		48		2		19		(8)		76
Total non-interest revenues	4,032		596		418		27		(631)		4,442
Interest income (1)	226		44		5		1,425		42		1,742
Total revenues	4,258		640		423		1,452		(589)		6,184
Interest expense	(51)		(43)		—		(404)		(27)		(525)
Net revenues	$	4,207	$	597	$	423	$	1,048	$	(616)	$	5,659

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

At March 31, 2024 and September 30, 2023, net receivables related to contracts with customers were $576 million and $519 million, respectively.


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

NOTE 19 – INTEREST INCOME AND INTEREST EXPENSE

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


	Three months ended March 31,				Six months ended March 31,
$ in millions	2024		2023		2024		2023
Interest income:
Cash and cash equivalents	$	128	$	75	$	260	$	130
Assets segregated for regulatory purposes and restricted cash	47		55		94		105
Trading assets — debt securities	19		13		34		27
Available-for-sale securities	56		54		112		107
Brokerage client receivables	47		41		92		82
Bank loans, net	727		657		1,461		1,256
All other	25		20		49		35
Total interest income	$	1,049	$	915	$	2,102	$	1,742
Interest expense:
Bank deposits	$	441	$	206	872		$	378
Trading liabilities — debt securities	11		7		22		17
Brokerage client payables	21		23		41		40
Other borrowings	8		9		16		18
Senior notes payable	23		23		46		46
All other	16		16		30		26
Total interest expense	$	520	$	284	$	1,027	$	525
Net interest income	$	529	$	631	$	1,075	$	1,217
Bank loan provision for credit losses	(21)		(28)		(33)		(42)
Net interest income after bank loan provision for credit losses	$	508	$	603	$	1,042	$	1,175

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

NOTE 20 – 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 and six months ended March 31, 2024, we granted approximately 87 thousand and 1.8 million RSUs, respectively, with a weighted-average grant-date fair value of $117.55 and $107.21, respectively, compared with approximately 203 thousand and 2.1 million RSUs granted during the three and six months ended March 31, 2023, respectively, with a weighted-average grant-date fair value of $108.39 and $116.75, respectively. For the three and six months ended March 31, 2024, total share-based compensation amortization related to RSUs was $53 million and $140 million, respectively, compared with $54 million and $130 million for the three and six months ended March 31, 2023, respectively.

As of March 31, 2024, there were $377 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the six months ended March 31, 2024. 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 and six months ended March 31, 2024 total share-based compensation amortization related to these RSAs was $2 million and $4 million, respectively, compared with $2 million and $5 million for the three and six months ended March 31, 2023, respectively. As of March 31, 2024, there were $8 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 21 – 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 March 31, 2024, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirements and each entity was categorized as “well-capitalized.”

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 March 31, 2024:
Tier 1 leverage	$	9,875	12.3	%	$	3,214	4.0	%	$	4,018	5.0	%
Tier 1 capital	$	9,875	21.9	%	$	2,703	6.0	%	$	3,604	8.0	%
CET1	$	9,799	21.8	%	$	2,027	4.5	%	$	2,928	6.5	%
Total capital	$	10,499	23.3	%	$	3,604	8.0	%	$	4,505	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 March 31, 2024, 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 increases in our company-owned life insurance policies, as well as brokerage client receivables and other receivables. RJF’s Tier 1 leverage ratio at March 31, 2024 increased compared to September 30, 2023 due to the increase in regulatory capital, which was partially offset by higher average assets, primarily driven by increases in cash, bank loans, and the aforementioned company-owned life insurance policies and receivables.

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 March 31, 2024:
Tier 1 leverage	$	3,374	8.0	%	$	1,677	4.0	%	$	2,096	5.0	%
Tier 1 capital	$	3,374	14.0	%	$	1,445	6.0	%	$	1,927	8.0	%
CET1	$	3,374	14.0	%	$	1,084	4.5	%	$	1,566	6.5	%
Total capital	$	3,677	15.3	%	$	1,927	8.0	%	$	2,409	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 March 31, 2024:
Tier 1 leverage	$	1,417	7.2	%	$	789	4.0	%	$	986	5.0	%
Tier 1 capital	$	1,417	16.4	%	$	517	6.0	%	$	689	8.0	%
CET1	$	1,417	16.4	%	$	388	4.5	%	$	560	6.5	%
Total capital	$	1,467	17.0	%	$	689	8.0	%	$	862	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 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	March 31, 2024			September 30, 2023
Raymond James & Associates, Inc.:
(Alternative Method elected)
Net capital as a percent of aggregate debit items	33.5		%	43.3		%
Net capital	$	993		$	1,035
Less: required net capital	(59)			(48)
Excess net capital	$	934		$	987

As of March 31, 2024, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.

NOTE 22 – EARNINGS PER SHARE

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


	Three months ended March 31,				Six months ended March 31,
in millions, except per share amounts	2024		2023		2024		2023
Income for basic earnings per common share:
Net income available to common shareholders	$	474	$	425	$	971	$	932
Less allocation of earnings and dividends to participating securities	(1)		(2)		(2)		(3)
Net income available to common shareholders after participating securities	$	473	$	423	$	969	$	929
Income for diluted earnings per common share:
Net income available to common shareholders	$	474	$	425	$	971	$	932
Less allocation of earnings and dividends to participating securities	(1)		(2)		(2)		(3)
Net income available to common shareholders after participating securities	$	473	$	423	$	969	$	929
Common shares:
Average common shares in basic computation	208.3		214.3		208.4		214.5
Dilutive effect of outstanding stock options and certain RSUs	5.1		4.9		5.1		5.2
Average common and common equivalent shares used in diluted computation	213.4		219.2		213.5		219.7
Earnings per common share:
Basic	$	2.27	$	1.97	$	4.65	$	4.33
Diluted	$	2.22	$	1.93	$	4.54	$	4.23
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive	—		1.6		0.1		1.3

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 and six months ended March 31, 2024 and 2023. 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 23 – 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 March 31,				Six months ended March 31,
$ in millions	2024		2023		2024		2023
Net revenues:
Private Client Group	$	2,341	$	2,144	$	4,567	$	4,207
Capital Markets	321		302		659		597
Asset Management	252		216		487		423
Bank	424		540		865		1,048
Other	17		10		43		19
Intersegment eliminations	(237)		(339)		(490)		(635)
Total net revenues	$	3,118	$	2,873	$	6,131	$	5,659
Pre-tax income/(loss):
Private Client Group	$	444	$	441	$	883	$	875
Capital Markets	(17)		(34)		(14)		(50)
Asset Management	100		82		193		162
Bank	75		91		167		227
Other	7		(23)		10		(5)
Total pre-tax income	$	609	$	557	$	1,239	$	1,209

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 March 31,				Six months ended March 31,
$ in millions	2024		2023		2024		2023
Net interest income:
Private Client Group	$	92	$	88	$	184	$	175
Capital Markets	2		1		3		1
Asset Management	3		3		6		5
Bank	413		530		839		1,021
Other	19		9		43		15
Net interest income	$	529	$	631	$	1,075	$	1,217

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


$ in millions	March 31, 2024		September 30, 2023
Total assets:
Private Client Group	$	13,194	$	12,375
Capital Markets	3,601		3,087
Asset Management	555		567
Bank	61,038		60,041
Other	2,844		2,290
Total	$	81,232	$	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	March 31, 2024		September 30, 2023
Goodwill:
Private Client Group	$	569	$	564
Capital Markets	275		275
Asset Management	69		69
Bank	529		529
Total	$	1,442	$	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 March 31,				Six months ended March 31,
$ in millions	2024		2023		2024		2023
Net revenues:
U.S.	$	2,846	$	2,627	$	5,607	$	5,167
Canada	155		144		294		278
Europe	117		102		230		214
Total net revenues	$	3,118	$	2,873	$	6,131	$	5,659
Pre-tax income/(loss):
U.S.	$	581	$	524	$	1,186	$	1,133
Canada	37		36		64		67
Europe	(9)		(3)		(11)		9
Total pre-tax income	$	609	$	557	$	1,239	$	1,209

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


$ in millions	March 31, 2024		September 30, 2023
Total assets:
U.S.	$	75,338	$	72,506
Canada	3,379		3,404
Europe	2,515		2,450
Total	$	81,232	$	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	March 31, 2024		September 30, 2023
Goodwill:
U.S.	$	1,250	$	1,250
Canada	25		25
Europe	167		162
Total	$	1,442	$	1,437


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES						Index

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