~~0000720005rjf:PrivateClientGroupMemberus-gaap:OperatingSegmentsMemberrjf:BrokerageRevenueMember2022-01-012022-03-31~~

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
			THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~December 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
			THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from						to

Commission File Number: 1-9109

RAYMOND JAMES FINANCIAL, INC.

(Exact name of registrant as specified in its charter)


Florida						59-1517485
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

880 Carillon Parkway, St. Petersburg, Florida 33716

(Address of principal executive offices) (Zip Code)

(727) 567-1000

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	RJF	New York Stock Exchange
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock	RJF PrB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

~~211,910,694~~209,027,614 shares of common stock as of ~~May 4, 2023~~February 5, 2024

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES


INDEX
		PAGE
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Statements of Financial Condition (Unaudited)	3
	Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)	4
	Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)
	Note 1 - Organization and basis of presentation	8
	Note 2 - Update of significant accounting policies	89

	Note 3 - Fair value	910
	Note 4 - Available-for-sale securities	15
	Note 5 - Derivative assets and derivative liabilities	18
	Note 6 - Collateralized agreements and financings	20
	Note 7 - Bank loans, net	23
	Note 8 - Loans to financial advisors, net	3029
	Note 9 - Variable interest entities	30

	Note 10 - ~~Goodwill and identifiable intangible~~Other assets ~~net~~	31
	Note 11 - ~~Other assets~~Leases	31
	Note 12 - Bank deposits	32
	~~Note 12 - Leases~~	32
	Note 13 - ~~Bank deposits~~Other borrowings	33


	Note 14 ~~- Other borrowings~~	34


	~~Note 15~~ - Income taxes	34
	Note 1615 - Commitments, contingencies and guarantees	3534
	Note 1716 - Shareholders’ equity	3736
	Note 1817 - Revenues	4039
	Note 1918 - Interest income and interest expense	4441
	Note 19 - Share-based compensation	41
	Note 20 - ~~Share-based compensation~~Regulatory capital requirements	42
	Note 21 - Earnings per share	44
	~~Note 21 - Regulatory capital requirements~~	45
	Note 22 ~~- Earnings per share~~	48
	~~Note 23~~ - Segment information	4945
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	5147
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	9483
Item 4.	Controls and Procedures	9483
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	9583
Item 1A.	Risk Factors	9583
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	9584
Item 3.	Defaults Upon Senior Securities	9584
Item 4.	Mine Safety Disclosures	9584
Item 5.	Other Information	9584
Item 6.	Exhibits	9685
	Signatures	9786

Index

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


$ in millions, except per share amounts	$ in millions, except per share amounts	March 31, 2023		September 30, 2022		$ in millions, except per share amounts	December 31, 2023	September 30, 2023
Assets:	Assets:
Cash and cash equivalents	Cash and cash equivalents	$	8,663	$	6,178
Cash and cash equivalents
Cash and cash equivalents
Assets segregated for regulatory purposes and restricted cash	Assets segregated for regulatory purposes and restricted cash	4,697		8,481
Collateralized agreements	Collateralized agreements	379		704
Financial instruments, at fair value:	Financial instruments, at fair value:
Trading assets ($935 and $1,188 pledged as collateral)		993		1,270
Available-for-sale securities ($26 and $74 pledged as collateral)		9,773		9,885
Trading assets ($1,019 and $1,062 pledged as collateral)
Trading assets ($1,019 and $1,062 pledged as collateral)
Trading assets ($1,019 and $1,062 pledged as collateral)
Available-for-sale securities ($20 and $22 pledged as collateral)
Derivative assets	Derivative assets	91		188
Other investments ($21 and $14 pledged as collateral)		318		292
Other investments ($7 and $7 pledged as collateral)
Brokerage client receivables, net	Brokerage client receivables, net	2,575		2,934
Other receivables, net	Other receivables, net	1,711		1,615
Bank loans, net	Bank loans, net	43,683		43,239
Loans to financial advisors, net	Loans to financial advisors, net	1,108		1,152
Deferred income taxes, net	Deferred income taxes, net	573		630
Goodwill and identifiable intangible assets, net	Goodwill and identifiable intangible assets, net	1,932		1,931
Other assets	Other assets	2,684		2,452
Total assets	Total assets	$	79,180	$	80,951

Liabilities and shareholders’ equity:	Liabilities and shareholders’ equity:
Liabilities and shareholders’ equity:
Liabilities and shareholders’ equity:
Bank deposits
Bank deposits
Bank deposits	Bank deposits	$	54,229	$	51,357
Collateralized financings	Collateralized financings	327		466
Financial instrument liabilities, at fair value:	Financial instrument liabilities, at fair value:
Trading liabilities
Trading liabilities
Trading liabilities	Trading liabilities	710		836
Derivative liabilities	Derivative liabilities	351		530
Brokerage client payables	Brokerage client payables	6,848		11,446
Accrued compensation, commissions and benefits	Accrued compensation, commissions and benefits	1,461		1,787
Other payables	Other payables	1,597		1,768
Other borrowings	Other borrowings	1,650		1,291
Senior notes payable	Senior notes payable	2,038		2,038
Total liabilities	Total liabilities	69,211		71,519
Commitments and contingencies (see Note 16)
Commitments and contingencies (see Note 15)						Commitments and contingencies (see Note 15)
Shareholders’ equity	Shareholders’ equity
Preferred stock	Preferred stock	120		120
Common stock; $.01 par value; 650,000,000 shares authorized; 248,323,901 shares issued and 211,581,156 shares outstanding as of March 31, 2023; 248,018,564 shares issued and 215,122,523 shares outstanding as of September 30, 2022		2		2
Preferred stock
Preferred stock
Common stock; $.01 par value; 650,000,000 shares authorized; 249,682,751 shares issued and 208,665,962 shares outstanding as of December 31, 2023; 248,728,805 shares issued and 208,769,095 shares outstanding as of September 30, 2023
Additional paid-in capital	Additional paid-in capital	3,035		2,987
Retained earnings	Retained earnings	9,590		8,843
Treasury stock, at cost; 36,742,745 and 32,896,041 common shares as of March 31, 2023 and September 30, 2022, respectively		(1,954)		(1,512)
Treasury stock, at cost; 41,016,789 and 39,959,710 common shares as of December 31, 2023 and September 30, 2023, respectively
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(798)		(982)
Total equity attributable to Raymond James Financial, Inc.	Total equity attributable to Raymond James Financial, Inc.	9,995		9,458
Noncontrolling interests	Noncontrolling interests	(26)		(26)
Total shareholders’ equity	Total shareholders’ equity	9,969		9,432
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity	$	79,180	$	80,951

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,					Three months ended December 31,
in millions, except per share amounts	in millions, except per share amounts	2023		2022		2023		2022		in millions, except per share amounts		2023	2022
Revenues:	Revenues:
Asset management and related administrative fees	Asset management and related administrative fees	$	1,302	$	1,464	$	2,544	$	2,846
Asset management and related administrative fees
Asset management and related administrative fees
Brokerage revenues:	Brokerage revenues:
Securities commissions
Securities commissions
Securities commissions	Securities commissions	369		422		721		847
Principal transactions	Principal transactions	127		142		259		275
Total brokerage revenues	Total brokerage revenues	496		564		980		1,122
Account and service fees	Account and service fees	258		179		547		356
Investment banking	Investment banking	154		235		295		660
Interest income	Interest income	915		242		1,742		467
Other	Other	32		27		76		78
Total revenues	Total revenues	3,157		2,711		6,184		5,529
Interest expense	Interest expense	(284)		(38)		(525)		(75)
Net revenues	Net revenues	2,873		2,673		5,659		5,454
Non-interest expenses:	Non-interest expenses:
Compensation, commissions and benefits	Compensation, commissions and benefits	1,820		1,852		3,556		3,736
Compensation, commissions and benefits
Compensation, commissions and benefits
Non-compensation expenses:	Non-compensation expenses:
Communications and information processing
Communications and information processing
Communications and information processing	Communications and information processing	153		127		292		239
Occupancy and equipment	Occupancy and equipment	68		62		134		121
Business development	Business development	54		34		110		69
Investment sub-advisory fees	Investment sub-advisory fees	36		40		70		78
Professional fees	Professional fees	38		27		70		55
Bank loan provision for credit losses	Bank loan provision for credit losses	28		21		42		10

Other

Other

Other	Other	119		77		176		155
Total non-compensation expenses	Total non-compensation expenses	496		388		894		727
Total non-interest expenses	Total non-interest expenses	2,316		2,240		4,450		4,463
Pre-tax income	Pre-tax income	557		433		1,209		991
Provision for income taxes	Provision for income taxes	130		110		273		222
Net income	Net income	427		323		936		769
Preferred stock dividends	Preferred stock dividends	2		—		4		—
Net income available to common shareholders	Net income available to common shareholders	$	425	$	323	$	932	$	769

Earnings per common share – basic	Earnings per common share – basic	$	1.97	$	1.56	$	4.33	$	3.71
Earnings per common share – basic
Earnings per common share – basic
Earnings per common share – diluted	Earnings per common share – diluted	$	1.93	$	1.52	$	4.23	$	3.61
Weighted-average common shares outstanding – basic	Weighted-average common shares outstanding – basic	214.3		207.7		214.5		207.0		Weighted-average common shares outstanding – basic		208.6	214.7
Weighted-average common and common equivalent shares outstanding – diluted	Weighted-average common and common equivalent shares outstanding – diluted	219.2		213.0		219.7		212.6		Weighted-average common and common equivalent shares outstanding – diluted		213.8	220.4

Net income	Net income	$	427	$	323	$	936	$	769
Net income
Net income
Other comprehensive income/(loss), net of tax:	Other comprehensive income/(loss), net of tax:
Available-for-sale securities
Available-for-sale securities
Available-for-sale securities	Available-for-sale securities	97		(320)		144		(375)
Currency translations, net of the impact of net investment hedges	Currency translations, net of the impact of net investment hedges	7		(11)		53		(11)
Cash flow hedges	Cash flow hedges	(11)		29		(13)		38
Total other comprehensive income/(loss), net of tax		93		(302)		184		(348)
Total other comprehensive income, net of tax
Total comprehensive income	Total comprehensive income	$	520	$	21	$	1,120	$	421

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	$ in millions, except per share amounts	2023		2022		2023		2022
$ in millions, except per share amounts
$ in millions, except per share amounts
Preferred stock:
Preferred stock:
Preferred stock:	Preferred stock:
Balance beginning of period	Balance beginning of period	$	120	$	—	$	120	$	—
Balance beginning of period
Balance beginning of period

Shares issuances		—		—		—		—
Share issuances

Share issuances

Share issuances

Balance end of period

Balance end of period

Balance end of period	Balance end of period	120		—		120		—

Common stock, par value $.01 per share:	Common stock, par value $.01 per share:

Common stock, par value $.01 per share:

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

Additional paid-in capital:	Additional paid-in capital:

Additional paid-in capital:

Additional paid-in capital:
Balance beginning of period
Balance beginning of period
Balance beginning of period	Balance beginning of period	2,975		2,055		2,987		2,088

Employee stock purchases	Employee stock purchases	15		14		22		22

Employee stock purchases

Employee stock purchases
Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures
Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures
Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures	Distributions due to vesting of restricted stock units and exercise of stock options, net of forfeitures	(11)		(17)		(110)		(122)
Share-based compensation amortization	Share-based compensation amortization	56		41		136		105
Share-based compensation amortization
Share-based compensation amortization
Balance end of period
Balance end of period
Balance end of period

Retained earnings:

Retained earnings:

Retained earnings:
Balance beginning of period
Balance beginning of period
Balance beginning of period
Net income attributable to Raymond James Financial, Inc.
Net income attributable to Raymond James Financial, Inc.
Net income attributable to Raymond James Financial, Inc.
Common and preferred stock cash dividends declared (see Note 16)
Common and preferred stock cash dividends declared (see Note 16)
Common and preferred stock cash dividends declared (see Note 16)

Balance end of period	Balance end of period	3,035		2,093		3,035		2,093

Retained earnings:
Balance beginning of period		9,254		8,003		8,843		7,633
Net income		427		323		936		769
Common and preferred stock cash dividends declared (see Note 17)		(91)		(70)		(189)		(146)

Balance end of period

Balance end of period	Balance end of period	9,590		8,256		9,590		8,256

Treasury stock:	Treasury stock:

Treasury stock:

Treasury stock:
Balance beginning of period
Balance beginning of period
Balance beginning of period	Balance beginning of period	(1,604)		(1,373)		(1,512)		(1,437)
Purchases/surrenders	Purchases/surrenders	(358)		—		(505)		(10)
Purchases/surrenders
Purchases/surrenders
Reissuances due to vesting of restricted stock units and exercise of stock options	Reissuances due to vesting of restricted stock units and exercise of stock options	8		13		63		87
Reissuances due to vesting of restricted stock units and exercise of stock options
Reissuances due to vesting of restricted stock units and exercise of stock options
Balance end of period
Balance end of period
Balance end of period	Balance end of period	(1,954)		(1,360)		(1,954)		(1,360)

Accumulated other comprehensive loss:	Accumulated other comprehensive loss:

Accumulated other comprehensive loss:

Accumulated other comprehensive loss:
Balance beginning of period	Balance beginning of period	(891)		(87)		(982)		(41)
Other comprehensive income/(loss), net of tax		93		(302)		184		(348)
Balance beginning of period
Balance beginning of period
Other comprehensive income, net of tax
Other comprehensive income, net of tax
Other comprehensive income, net of tax

Balance end of period

Balance end of period

Balance end of period	Balance end of period	(798)		(389)		(798)		(389)
Total equity attributable to Raymond James Financial, Inc.	Total equity attributable to Raymond James Financial, Inc.	$	9,995	$	8,602	$	9,995	$	8,602
Total equity attributable to Raymond James Financial, Inc.
Total equity attributable to Raymond James Financial, Inc.

Noncontrolling interests:

Noncontrolling interests:

Noncontrolling interests:	Noncontrolling interests:
Balance beginning of period	Balance beginning of period	$	(26)	$	52	$	(26)	$	58
Net loss attributable to noncontrolling interests		—		(2)		—		—
Balance beginning of period
Balance beginning of period

Deconsolidations and sales		—		(43)		—		(51)
Consolidations

Consolidations

Consolidations

Balance end of period

Balance end of period

Balance end of period	Balance end of period	(26)		7		(26)		7
Total shareholders’ equity	Total shareholders’ equity	$	9,969	$	8,609	$	9,969	$	8,609
Total shareholders’ equity
Total shareholders’ equity

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,
		Three months ended December 31,								Three months ended December 31,
$ in millions	$ in millions		2023		2022		$ in millions	2023	2022
Cash flows from operating activities:	Cash flows from operating activities:						Cash flows from operating activities:
Net income	Net income		$	936	$	769
Adjustments to reconcile net income to net cash used in operating activities:
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:							Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization	Depreciation and amortization		81		69
Deferred income taxes, net	Deferred income taxes, net		(4)		12
Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments	Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments		(23)		24
Provisions for credit losses and legal and regulatory proceedings			78		16
Provisions for credit losses and legal and regulatory matters, net
Share-based compensation expense	Share-based compensation expense		138		109
Unrealized (gain)/loss on company-owned life insurance policies, net of expenses			(86)		19
Unrealized gain on company-owned life insurance policies, net of expenses

Other	Other		(3)		10
Other
Other
Net change in:	Net change in:						Net change in:
Assets segregated for regulatory purposes excluding cash and cash equivalents			—		(8,294)

Collateralized agreements, net of collateralized financings
Collateralized agreements, net of collateralized financings
Collateralized agreements, net of collateralized financings	Collateralized agreements, net of collateralized financings		186		59
Loans (provided to) financial advisors, net of repayments	Loans (provided to) financial advisors, net of repayments		34		(76)
Brokerage client receivables and other receivables, net	Brokerage client receivables and other receivables, net		145		(299)
Trading instruments, net	Trading instruments, net		163		160
Derivative instruments, net	Derivative instruments, net		(122)		166
Other assets	Other assets		(65)		(39)
Brokerage client payables and other payables	Brokerage client payables and other payables		(4,892)		6,556
Accrued compensation, commissions and benefits	Accrued compensation, commissions and benefits		(332)		(278)
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale	Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale		6		(153)
Net cash used in operating activities			(3,760)		(1,170)
Net cash provided by/(used in) operating activities

Cash flows from investing activities:
Cash flows from investing activities:
Cash flows from investing activities:	Cash flows from investing activities:
Increase in bank loans, net	Increase in bank loans, net		(621)		(2,850)
Proceeds from sales of loans held for investment	Proceeds from sales of loans held for investment		142		134
Purchases of available-for-sale securities	Purchases of available-for-sale securities		(325)		(1,992)
Available-for-sale securities maturations, repayments and redemptions	Available-for-sale securities maturations, repayments and redemptions		639		952

Cash and cash equivalents acquired in business acquisitions, including those segregated for regulatory purposes, net of cash paid for acquisitions			—		1,671

Additions to property and equipment	Additions to property and equipment		(69)		(42)
Purchase of Federal Home Loan Bank stock, net			(35)		—

Investment in note receivable			—		(125)
Purchases of other investments, net			(6)		(80)
Additions to property and equipment

Additions to property and equipment

Investment in solar tax credit equity investment

Investment in solar tax credit equity investment

Investment in solar tax credit equity investment

Other investing activities, net
Other investing activities, net
Other investing activities, net	Other investing activities, net		(44)		(71)
Net cash used in investing activities	Net cash used in investing activities		(319)		(2,403)

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

Index


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

Increase in bank deposits	Increase in bank deposits		2,872		2,190

Increase in bank deposits

Increase in bank deposits
Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements	Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements		(558)		(59)
Dividends on preferred and common stock			(174)		(131)
Dividends on common and preferred stock
Exercise of stock options and employee stock purchases	Exercise of stock options and employee stock purchases		25		32

Proceeds from Federal Home Loan Bank advances
Proceeds from Federal Home Loan Bank advances
Proceeds from Federal Home Loan Bank advances	Proceeds from Federal Home Loan Bank advances		1,650		850
Repayments of Federal Home Loan Bank advances and other borrowed funds	Repayments of Federal Home Loan Bank advances and other borrowed funds		(1,291)		(852)
Other financing, net	Other financing, net		(2)		(5)
Net cash provided by financing activities	Net cash provided by financing activities		2,522		2,025

Currency adjustment:	Currency adjustment:
Currency adjustment:
Currency adjustment:
Effect of exchange rate changes on cash and cash equivalents, including those segregated for regulatory purposes	Effect of exchange rate changes on cash and cash equivalents, including those segregated for regulatory purposes		258		(49)
Net decrease in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash			(1,299)		(1,597)
Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year	Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year		14,659		16,449
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period	Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period		$	13,360	$	14,852

Cash and cash equivalents	Cash and cash equivalents		$	8,663	$	5,715
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents segregated for regulatory purposes and restricted cash	Cash and cash equivalents segregated for regulatory purposes and restricted cash		4,697		9,137
Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period	Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of period		$	13,360	$	14,852

Supplemental disclosures of cash flow information:
Supplemental disclosures of cash flow information:
Supplemental disclosures of cash flow information:	Supplemental disclosures of cash flow information:
Cash paid for interest	Cash paid for interest		$	483	$	76
Cash paid for income taxes, net	Cash paid for income taxes, net		$	389	$	293
Cash outflows for lease liabilities	Cash outflows for lease liabilities		$	60	$	52
Non-cash right-of-use assets recorded for new and modified leases	Non-cash right-of-use assets recorded for new and modified leases		$	42	$	26

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~~December 31, 2023

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

Organization

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

Basis of presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100%-owned subsidiaries. In addition, we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 of our Annual Report on Form 10-K (“~~2022~~2023 Form 10-K”) for the year ended September 30, ~~2022,~~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 ~~2022~~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.

~~Reclassifications~~

~~Certain prior period amounts have been reclassified to conform to the current period’s presentation.~~


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 ~~2022~~2023 Form 10-K. ~~There have been~~During the three months ended December 31, 2023, there were no significant changes into our significant accounting policies ~~since September 30, 2022.~~other than the accounting policies adopted or modified as part of our implementation of new or amended accounting guidance, as noted in the following sections.

Accounting guidance adopted in fiscal 2024

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


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

NOTE 3 – FAIR VALUE

Our “Financial instruments” and “Financial instrument liabilities” on our Condensed Consolidated Statements of Financial Condition are recorded at fair value. ~~For~~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, see Notes 2 and 4 of our 2022 Form 10-K.~~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	$ in millions	Level 1		Level 2		Level 3		Netting adjustments		Balance as of March 31, 2023		$ in millions	Level 1	Level 2	Level 3	Netting adjustments	Balance as of December 31, 2023
Assets at fair value on a recurring basis:	Assets at fair value on a recurring basis:											Assets at fair value on a recurring basis:

Trading assets:
Trading assets:
Trading assets:	Trading assets:
Municipal and provincial obligations	Municipal and provincial obligations	$	—	$	177	$	—	$	—	$	177
Corporate obligations	Corporate obligations	17		520		—		—		537
Government and agency obligations	Government and agency obligations	40		83		—		—		123
Agency mortgage-backed securities (“MBS”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABS”)	Agency mortgage-backed securities (“MBS”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABS”)	—		27		—		—		27
Non-agency CMOs and ABS	Non-agency CMOs and ABS	—		106		—		—		106
Total debt securities	Total debt securities	57		913		—		—		970
Equity securities	Equity securities	8		2		—		—		10
Brokered certificates of deposit	Brokered certificates of deposit	1		9		—		—		10
Other	Other	—		—		3		—		3
Total trading assets	Total trading assets	66		924		3		—		993
Available-for-sale securities (1)	Available-for-sale securities (1)	1,021		8,752		—		—		9,773
Derivative assets:
Interest rate		9		361		—		(279)		91

Derivative assets - interest rate
Derivative assets - interest rate
Derivative assets - interest rate

Total derivative assets		9		361		—		(279)		91

All other investments:

All other investments:

All other investments:	All other investments:
Government and agency obligations (2)	Government and agency obligations (2)	97		—		—		—		97
Government and agency obligations (2)
Government and agency obligations (2)
Other	Other	93		1		28		—		122
Total all other investments	Total all other investments	190		1		28		—		219
Other assets - fractional shares		92		—		—		—		92
Other assets - client-owned fractional shares
Subtotal	Subtotal	1,378		10,038		31		(279)		11,168
Other investments - private equity - measured at net asset value (“NAV”)	Other investments - private equity - measured at net asset value (“NAV”)									99
Total assets at fair value on a recurring basis	Total assets at fair value on a recurring basis	$	1,378	$	10,038	$	31	$	(279)	$	11,267

Liabilities at fair value on a recurring basis:	Liabilities at fair value on a recurring basis:
Liabilities at fair value on a recurring basis:
Liabilities at fair value on a recurring basis:
Trading liabilities:	Trading liabilities:
Trading liabilities:
Trading liabilities:
Municipal and provincial obligations
Municipal and provincial obligations
Municipal and provincial obligations	Municipal and provincial obligations	$	1	$	—	$	—	$	—	$	1
Corporate obligations	Corporate obligations	—		563		—		—		563
Government and agency obligations	Government and agency obligations	99		2		—		—		101
Non-agency CMOs and ABS		—		4		—		—		4

Total debt securities
Total debt securities
Total debt securities	Total debt securities	100		569		—		—		669
Equity securities	Equity securities	41		—		—		—		41

Total trading liabilities	Total trading liabilities	141		569		—		—		710
Total trading liabilities
Total trading liabilities
Derivative liabilities:	Derivative liabilities:
Interest rate
Interest rate
Interest rate	Interest rate	8		408		—		(78)		338

Foreign exchange	Foreign exchange	—		9		—		—		9
Other		—		—		4		—		4

Foreign exchange

Foreign exchange

Total derivative liabilities	Total derivative liabilities	8		417		4		(78)		351
Other payables - fractional shares		92		—		—		—		92
Total derivative liabilities
Total derivative liabilities
Other payables - repurchase liabilities related to client-owned fractional shares
Total liabilities at fair value on a recurring basis	Total liabilities at fair value on a recurring basis	$	241	$	986	$	4	$	(78)	$	1,153

910

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

$ in millions Level 1 Level 2 Level 3 Netting
adjustments Balance as of September 30, 2022
Assets at fair value on a recurring basis:
Trading assets:
Municipal and provincial obligations $ — $ 269 $ — $ — $ 269
Corporate obligations 16 579 — — 595
Government and agency obligations 86 85 — — 171
Agency MBS, CMOs, and ABS — 123 — — 123
Non-agency CMOs and ABS — 61 — — 61
Total debt securities 102 1,117 — — 1,219
Equity securities 20 — — — 20
Brokered certificates of deposit — 30 — — 30
Other — — 1 — 1
Total trading assets 122 1,147 1 — 1,270
Available-for-sale securities (1)
986 8,899 — — 9,885
Derivative assets:
Interest rate 42 484 — (348) 178
Foreign exchange — 10 — — 10
Total derivative assets 42 494 — (348) 188
All other investments:
Government and agency obligations (2)
79 — — — 79
Other 92 2 29 — 123
Total all other investments 171 2 29 — 202
Other assets - fractional shares 78 — — — 78
Subtotal 1,399 10,542 30 (348) 11,623
Other investments - private equity - measured at NAV 90
Total assets at fair value on a recurring basis $ 1,399 $ 10,542 $ 30 $ (348) $ 11,713
Liabilities at fair value on a recurring basis:
Trading liabilities:
Municipal and provincial obligations $ 5 $ — $ — $ — $ 5
Corporate obligations — 555 — — 555
Government and agency obligations 249 — — — 249
Total debt securities 254 555 — — 809
Equity securities 27 — — — 27
Total trading liabilities 281 555 — — 836
Derivative liabilities:
Interest rate 40 547 — (65) 522
Foreign exchange — 5 — — 5
Other — — 3 — 3
Total derivative liabilities 40 552 3 (65) 530
Other payables - fractional shares 78 — — — 78
Total liabilities at fair value on a recurring basis $ 399 $ 1,107 $ 3 $ (65) $ 1,444


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.

1011


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”~~“Principal transactions” and gains/(losses) on other investments are reported in ~~“Other”~~“Other” revenues on our Condensed Consolidated Statements of Income and Comprehensive Income.

										Three months ended March 31, 2023 Level 3 instruments at fair value
			Financial assets				Financial liabilities
			Trading assets		Other investments			Derivative liabilities
Three months ended December 31, 2023 Level 3 instruments at fair value
Three months ended December 31, 2023 Level 3 instruments at fair value
Three months ended December 31, 2023 Level 3 instruments at fair value
		Financial assets											Financial assets			Financial liabilities
		Trading assets										Trading assets			Other investments			Derivative liabilities
$ in millions	$ in millions		Other		All other			Other		$ in millions	Other			All other			Other
Fair value beginning of period	Fair value beginning of period		$	6	$	30		$	(4)
Total gains/(losses) included in earnings	Total gains/(losses) included in earnings		—		(2)			—
Purchases and contributions	Purchases and contributions		11		—			—
Sales and distributions	Sales and distributions		(14)		—			—
Transfers:	Transfers:
Into Level 3	Into Level 3		—		—			—
Into Level 3
Into Level 3
Out of Level 3	Out of Level 3		—		—			—
Fair value end of period	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	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 and distributions (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)

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~


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

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

Three months ended March 31, 2022
Level 3 instruments at fair value
Financial assets Financial liabilities
Trading assets Derivative assets Other investments Trading liabilities
$ in millions Other Other All other Other
Fair value beginning of period $ 2 $ 1 $ 98 $ —
Total gains/(losses) included in earnings — (1) — (1)
Purchases and contributions 29 — 7 —
Sales, distributions, and deconsolidations (18) — (40) —
Transfers:
Into Level 3 — — — —
Out of Level 3 — — (12) —
Fair value end of period $ 13 $ — $ 53 $ (1)
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period $ (1) $ (1) $ — $ (1)

Six months ended March 31, 2022
Level 3 instruments at fair value
Financial assets Financial liabilities
Trading assets Other investments Trading liabilities Derivative liabilities
$ in millions Other All other Other Other
Fair value beginning of period $ 14 $ 98 $ — $ (1)
Total gains/(losses) included in earnings 2 — (1) 1
Purchases and contributions 54 7 — —
Sales, distributions, and deconsolidations (57) (40) — —
Transfers:
Into Level 3 — — — —
Out of Level 3 — (12) — —
Fair value end of period $ 13 $ 53 $ (1) $ —
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~~December 31, 2023 and September 30, ~~2022,~~2023, 14% of our assets and 2% of our liabilities were measured at fair value on a recurring ~~basis~~basis. As of both December 31, 2023 and September 30, 2023, Level 3 assets represented less than 1% of our assets measured at fair value on a recurring basis.

Investments in private equity measured at net asset value per share

As more fully described in Note 2 of our ~~2022~~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~~December 31, 2023 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments. Our investments cannot be redeemed directly with the funds. Our investments are monetized through the liquidation of underlying assets of fund investments, the timing of which is uncertain.


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

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

$ in millions

Recorded value

Unfunded commitment

$ in millions

Recorded value

Unfunded commitment

March 31, 2023

December 31, 2023

Private equity investments measured at NAV

Private equity investments not measured at NAV

Total private equity investments

104

Total private equity investments

September 30, 2022

September 30, 2023

Private equity investments measured at NAV

Private equity investments not measured at NAV

Total private equity investments

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	$ in millions	Level 2		Level 3		Total fair value		Valuation technique(s)	Unobservable input	Range (weighted-average)
March 31, 2023
$ in millions
$ in millions														Level 2						Level 3						Total fair value				Valuation technique(s)		Unobservable input			Range (weighted-average)
December 31, 2023
Bank loans:	Bank loans:
Bank loans:
Bank loans:
Residential mortgage loans
Residential mortgage loans
Residential mortgage loans	Residential mortgage loans	$	2	$	9	$	11	Collateral or discounted cash flow (1)	Prepayment rate	7 yrs. - 12 yrs. (10.3 yrs.)		$	2			$		$	8			$		$	10			Collateral or discounted cash flow (1)		Collateral or discounted cash flow (1)		Prepayment rate			7 yrs. - 12 yrs. (10.3 yrs.)
Corporate loans	Corporate loans	$	—	$	76	$	76	Collateral or discounted cash flow (1)	Recovery rate	44% - 80% (63%)	Corporate loans			$	—		$			$	104		$			$	104		Collateral or discounted cash flow (1)		Collateral or discounted cash flow (1)		Recovery rate			3% - 63% (49%)
Loans held for sale	Loans held for sale	$	93	$	—	$	93	N/A	N/A	N/A	Loans held for sale			$	30		$			$	—		$			$	30		N/A					N/A

September 30, 2022
September 30, 2023

September 30, 2023

September 30, 2023
Bank loans:	Bank loans:
Bank loans:
Bank loans:
Residential mortgage loans
Residential mortgage loans
Residential mortgage loans	Residential mortgage loans	$	2	$	10	$	12	Collateral or discounted cash flow (1)	Prepayment rate	7 yrs. - 12 yrs. (10.4 yrs.)		$	2			$		$	8			$		$	10			Collateral or discounted cash flow (1)		Collateral or discounted cash flow (1)		Prepayment rate			7 yrs. - 12 yrs. (10.3 yrs.)
Corporate loans	Corporate loans	$	—	$	57	$	57	Collateral or discounted cash flow (1)	Recovery rate	24% - 66% (47%)	Corporate loans			$	—		$			$	84		$			$	84		Collateral or discounted cash flow (1)		Collateral or discounted cash flow (1)		Recovery rate			22% - 65% (53%)
Loans held for sale	Loans held for sale	$	3	$	—	$	3	N/A	N/A	N/A	Loans held for sale			$	2		$			$	—		$			$	2		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~~December 31, 2023 and September 30, ~~2022.~~2023. This table excludes financial instruments that are carried at amounts which approximate fair value. ~~Refer to~~See Note 4 of our ~~2022~~2023 Form 10-K for a discussion ~~of the fair value hierarchy classifications~~ of our financial instruments that are not recorded at fair value.


$ in millions	$ in millions	Level 2		Level 3		Total estimated fair value		Carrying amount
March 31, 2023
$ in millions
$ in millions										Level 2	Level 3	Total estimated fair value	Carrying amount
December 31, 2023
Financial assets:
Financial assets:
Financial assets:	Financial assets:
Bank loans, net	Bank loans, net	$	26	$	42,926	$	42,952	$	43,503
Financial liabilities:	Financial liabilities:
Bank deposits - certificates of deposit	Bank deposits - certificates of deposit	$	2,643	$	—	$	2,643	$	2,656
Bank deposits - certificates of deposit
Bank deposits - certificates of deposit
Other borrowings - subordinated notes payable	Other borrowings - subordinated notes payable	$	92	$	—	$	92	$	100
Senior notes payable	Senior notes payable	$	1,779	$	—	$	1,779	$	2,038

September 30, 2022
September 30, 2023
September 30, 2023
September 30, 2023
Financial assets:	Financial assets:
Financial assets:
Financial assets:
Bank loans, net
Bank loans, net
Bank loans, net	Bank loans, net	$	134	$	42,336	$	42,470	$	43,167
Financial liabilities:	Financial liabilities:
Bank deposits - certificates of deposit	Bank deposits - certificates of deposit	$	400	$	579	$	979	$	999
Bank deposits - certificates of deposit
Bank deposits - certificates of deposit
Other borrowings - subordinated notes payable	Other borrowings - subordinated notes payable	$	95	$	—	$	95	$	100
Senior notes payable	Senior notes payable	$	1,706	$	—	$	1,706	$	2,038


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

NOTE 4 – AVAILABLE-FOR-SALE SECURITIES

~~Refer to~~See Note 2 of our ~~2022~~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	$ in millions	Cost basis		Gross unrealized gains		Gross unrealized losses		Fair value		$ in millions	Cost basis	Gross unrealized gains	Gross unrealized losses	Fair value
March 31, 2023
December 31, 2023										December 31, 2023
Agency residential MBS	Agency residential MBS	$	5,272	$	1	$	(520)	$	4,753
Agency commercial MBS	Agency commercial MBS	1,477		—		(178)		1,299
Agency CMOs	Agency CMOs	1,545		—		(218)		1,327
Other agency obligations	Other agency obligations	760		—		(23)		737
Non-agency residential MBS	Non-agency residential MBS	518		—		(39)		479
U.S. Treasuries	U.S. Treasuries	1,043		—		(22)		1,021
Corporate bonds	Corporate bonds	145		—		(5)		140
Other	Other	17		—		—		17
Total available-for-sale securities	Total available-for-sale securities	$	10,777	$	1	$	(1,005)	$	9,773

September 30, 2022
September 30, 2023
September 30, 2023
September 30, 2023
Agency residential MBS	Agency residential MBS	$	5,662	$	—	$	(668)	$	4,994
Agency commercial MBS	Agency commercial MBS	1,518		—		(208)		1,310
Agency CMOs	Agency CMOs	1,637		—		(233)		1,404
Other agency obligations	Other agency obligations	613		—		(31)		582
Non-agency residential MBS	Non-agency residential MBS	492		—		(41)		451
U.S. Treasuries	U.S. Treasuries	1,014		—		(28)		986
Corporate bonds	Corporate bonds	146		—		(5)		141
Other	Other	18		—		(1)		17
Total available-for-sale securities	Total available-for-sale securities	$	11,100	$	—	$	(1,215)	$	9,885

The amortized costs and fair values in the preceding table exclude ~~$25~~$29 million and ~~$24~~$28 million of accrued interest on available-for-sale securities as of ~~March~~December 31, 2023 and September 30, ~~2022,~~2023, respectively, which was included in ~~“Other~~“Other receivables, ~~net”~~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, ~~carrying~~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, ~~as of March 31, 2023,~~ the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately ~~4.38 years.~~4.0 years as of December 31, 2023.


		March 31, 2023																December 31, 2023
$ in millions	$ in millions	Within one year			After one but within five years			After five but within ten years			After ten years			Total			$ in millions	Within one year		After one but within five years		After five but within ten years		After ten years		Total
Agency residential MBS	Agency residential MBS																Agency residential MBS
Amortized cost	Amortized cost	$	—		$	138		$	2,332		$	2,802		$	5,272
Carrying value		$	—		$	134		$	2,120		$	2,499		$	4,753
Fair value
Weighted-average yield	Weighted-average yield	—		%	2.47		%	1.30		%	1.90		%	1.65		%	Weighted-average yield	2.11	%	2.53	%	1.31	%	1.95	%	1.68	%
Agency commercial MBS	Agency commercial MBS
Amortized cost	Amortized cost	$	—		$	876		$	550		$	51		$	1,477
Carrying value		$	—		$	797		$	459		$	43		$	1,299
Amortized cost
Amortized cost
Fair value
Weighted-average yield	Weighted-average yield	—		%	1.63		%	1.25		%	1.87		%	1.50		%	Weighted-average yield	3.45	%	1.60	%	1.20	%	1.87	%	1.51	%
Agency CMOs	Agency CMOs																Agency CMOs
Amortized cost	Amortized cost	$	—		$	11		$	41		$	1,493		$	1,545
Carrying value		$	—		$	10		$	37		$	1,280		$	1,327
Fair value
Weighted-average yield	Weighted-average yield	—		%	2.28		%	1.51		%	1.61		%	1.61		%	Weighted-average yield	—	%	2.39	%	1.52	%	1.58	%	1.58	%
Other agency obligations	Other agency obligations
Amortized cost	Amortized cost	$	35		$	609		$	105		$	11		$	760
Carrying value		$	34		$	594		$	99		$	10		$	737
Amortized cost
Amortized cost
Fair value
Weighted-average yield	Weighted-average yield	2.16		%	3.42		%	3.58		%	3.07		%	3.38		%	Weighted-average yield	2.08	%	3.26	%	3.43	%	3.07	%	3.15	%
Non-agency residential MBS	Non-agency residential MBS
Amortized cost	Amortized cost	$	—		$	—		$	—		$	518		$	518
Carrying value		$	—		$	—		$	—		$	479		$	479
Amortized cost
Amortized cost
Fair value
Weighted-average yield	Weighted-average yield	—		%	—		%	—		%	4.13		%	4.13		%	Weighted-average yield	—	%	—	%	—	%	4.33	%	4.33	%
U.S. Treasuries	U.S. Treasuries
Amortized cost	Amortized cost	$	191		$	852		$	—		$	—		$	1,043
Carrying value		$	188		$	833		$	—		$	—		$	1,021
Amortized cost
Amortized cost
Fair value
Weighted-average yield	Weighted-average yield	2.28		%	2.78		%	—		%	—		%	2.69		%	Weighted-average yield	2.67	%	4.64	%	—	%	—	%	3.25	%
Corporate bonds	Corporate bonds
Amortized cost	Amortized cost	$	1		$	116		$	28		$	—		$	145
Carrying value		$	1		$	112		$	27		$	—		$	140
Amortized cost
Amortized cost
Fair value
Weighted-average yield	Weighted-average yield	2.88		%	5.80		%	4.95		%	—		%	5.61		%	Weighted-average yield	4.73	%	5.58	%	5.02	%	—	%	5.30	%
Other	Other
Amortized cost	Amortized cost	$	—		$	5		$	5		$	7		$	17
Carrying value		$	—		$	5		$	4		$	8		$	17
Amortized cost
Amortized cost
Fair value
Weighted-average yield	Weighted-average yield	—		%	6.66		%	5.23		%	7.47		%	6.67		%	Weighted-average yield	—	%	7.39	%	5.22	%	8.32	%	7.26	%
Total available-for-sale securities	Total available-for-sale securities
Amortized cost	Amortized cost	$	227		$	2,607		$	3,061		$	4,882		$	10,777
Carrying value		$	223		$	2,485		$	2,746		$	4,319		$	9,773
Amortized cost
Amortized cost
Fair value
Weighted-average yield	Weighted-average yield	2.27		%	2.66		%	1.42		%	2.06		%	2.03		%	Weighted-average yield	2.70	%	2.79	%	1.39	%	2.14	%	2.13	%


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

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


		Less than 12 months				12 months or more				Total					Less than 12 months		12 months or more			Total
$ in millions	$ in millions	Estimated fair value		Unrealized losses		Estimated fair value		Unrealized losses		Estimated fair value		Unrealized losses		$ in millions	Fair value	Unrealized losses		Fair value	Unrealized losses		Fair value	Unrealized losses
March 31, 2023
December 31, 2023
Agency residential MBS
Agency residential MBS
Agency residential MBS	Agency residential MBS	$	673	$	(40)	$	4,018	$	(480)	$	4,691	$	(520)
Agency commercial MBS	Agency commercial MBS	145		(4)		1,154		(174)		1,299		(178)
Agency CMOs	Agency CMOs	40		(1)		1,287		(217)		1,327		(218)
Other agency obligations	Other agency obligations	386		(11)		301		(12)		687		(23)
Non-agency residential MBS	Non-agency residential MBS	469		(39)		—		—		469		(39)
U.S. Treasuries	U.S. Treasuries	749		(16)		247		(6)		996		(22)
Corporate bonds	Corporate bonds	125		(5)		—		—		125		(5)
Other	Other	13		—		—		—		13		—
Total	Total	$	2,600	$	(116)	$	7,007	$	(889)	$	9,607	$	(1,005)
September 30, 2022

September 30, 2023
September 30, 2023
September 30, 2023
Agency residential MBS
Agency residential MBS
Agency residential MBS	Agency residential MBS	$	2,165	$	(226)	$	2,829	$	(442)	$	4,994	$	(668)
Agency commercial MBS	Agency commercial MBS	494		(41)		816		(167)		1,310		(208)
Agency CMOs	Agency CMOs	337		(32)		1,067		(201)		1,404		(233)
Other agency obligations	Other agency obligations	582		(31)		—		—		582		(31)
Non-agency residential MBS	Non-agency residential MBS	451		(41)		—		—		451		(41)
U.S. Treasuries	U.S. Treasuries	982		(28)		4		—		986		(28)
Corporate bonds	Corporate bonds	128		(5)		—		—		128		(5)
Other	Other	17		(1)		—		—		17		(1)
Total	Total	$	5,156	$	(405)	$	4,716	$	(810)	$	9,872	$	(1,215)

At ~~March~~December 31, 2023, of the ~~1,072~~1,066 available-for-sale securities in an unrealized loss position, ~~395~~36 were in a continuous unrealized loss position for less than 12 months and ~~677~~1,030 securities were in a continuous unrealized loss position for greater than 12 months.

At ~~March~~December 31, 2023, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of ~~$5.07~~$4.60 billion and ~~$3.05~~$2.77 billion, respectively, and fair values of ~~$4.52~~$4.11 billion and ~~$2.70~~$2.45 billion, respectively.

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


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

NOTE 5 – DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES

Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” on our Condensed Consolidated Statements of Financial Condition. Cash flows related to our derivatives are included within operating activities on the Condensed Consolidated Statements of Cash Flows. The significant accounting policies governing our derivatives, including our methodologies for determining fair value, are described in Note 2 of our ~~2022~~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, 2023						September 30, 2022
		December 31, 2023																	December 31, 2023			September 30, 2023
$ in millions	$ in millions		Derivative assets		Derivative liabilities		Notional amount		Derivative assets		Derivative liabilities		Notional amount		$ in millions	Derivative assets	Derivative liabilities	Notional amount		Derivative assets	Derivative liabilities		Notional amount
Derivatives not designated as hedging instruments	Derivatives not designated as hedging instruments
Interest rate - other (1)			$	353	$	407	$	16,404	$	462	$	535	$	14,647
Interest rate - matched book			8		8		170		52		52		1,340
Interest rate (1)
Interest rate (1)
Interest rate (1)

Foreign exchange
Foreign exchange
Foreign exchange	Foreign exchange		—		4		1,128		4		5		958
Other	Other		—		4		582		—		3		531
Subtotal	Subtotal		361		423		18,284		518		595		17,476
Derivatives designated as hedging instruments	Derivatives designated as hedging instruments
Interest rate - other (2)			9		1		1,300		12		—		1,050
Interest rate
Interest rate
Interest rate
Foreign exchange	Foreign exchange		—		5		1,149		6		—		1,092
Subtotal	Subtotal		9		6		2,449		18		—		2,142
Total gross fair value/notional amount	Total gross fair value/notional amount		370		429		$	20,733	536		595		$	19,618
Offset on the Condensed Consolidated Statements of Financial Condition	Offset on the Condensed Consolidated Statements of Financial Condition
Counterparty netting	Counterparty netting		(36)		(36)				(35)		(35)
Counterparty netting
Counterparty netting
Cash collateral netting
Cash collateral netting
Cash collateral netting	Cash collateral netting		(243)		(42)				(313)		(30)
Total amounts offset	Total amounts offset		(279)		(78)				(348)		(65)
Total amounts offset
Total amounts offset
Net amounts presented on the Condensed Consolidated Statements of Financial Condition
Net amounts presented on the Condensed Consolidated Statements of Financial Condition
Net amounts presented on the Condensed Consolidated Statements of Financial Condition	Net amounts presented on the Condensed Consolidated Statements of Financial Condition		$	91	$	351			$	188	$	530
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
Financial instruments (3)			(14)		(8)				(60)		(52)
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
Financial instruments
Financial instruments
Financial instruments
Total	Total		$	77	$	343			$	128	$	478
Total
Total

(1) ~~Relates to interest rate derivatives entered into as part of our fixed income business operations, including~~Included to-be-announced security contracts that are accounted for as ~~derivatives, as well as our banking operations.~~

(2) During the six months ended March 31, 2023, we entered into an interest rate swap to manage our 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. Such interest rate swap has been designated and accounted for as a cash flow hedge. Refer to Note 13 of this Form 10-Q for information regarding these bank deposits.

(3) Although the matched book derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary includes terms that are similar to a master netting agreement. As a result, we present the matched book amounts net in the preceding table.

derivatives.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

The following table details the ~~gains/(losses)~~losses included in accumulated other comprehensive ~~income/(loss)~~loss (“AOCI”), net of income taxes, on derivatives designated as hedging instruments. These ~~gains/(losses)~~losses included any amounts reclassified from AOCI to net income during the period. See Note 1716 for additional information.




		Three months ended March 31,				Six months ended March 31,
$ in millions	$ in millions	2023		2022		2023		2022
$ in millions
$ in millions
Interest rate (cash flow hedges)
Interest rate (cash flow hedges)
Interest rate (cash flow hedges)	Interest rate (cash flow hedges)	$	(11)	$	29	$	(13)	$	38
Foreign exchange (net investment hedges)	Foreign exchange (net investment hedges)	(3)		(9)		(17)		(10)
Total gains/(losses) included in AOCI, net of taxes		$	(14)	$	20	$	(30)	$	28
Foreign exchange (net investment hedges)
Foreign exchange (net investment hedges)
Total losses included in AOCI, net of taxes
Total losses included in AOCI, net of taxes
Total losses included in AOCI, net of taxes

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~~December 31, 2023 and 2022. We expect to reclassify ~~$29~~$27 million of interest expense out of AOCI and into earnings within the next 12 months. The maximum length of time over which forecasted transactions are or will be hedged is ~~five~~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	$ in millions			Three months ended March 31,				Six months ended March 31,
			Location of gain/(loss)	2023		2022		2023		2022
$ in millions

		Location of gain/(loss)
		Location of gain/(loss)
Interest rate
Interest rate
Interest rate	Interest rate		Principal transactions/other revenues	$	5	$	7	$	11	$	10
Foreign exchange	Foreign exchange		Other revenues	$	(6)	$	(2)	$	(36)	$	(3)
Foreign exchange
Foreign exchange
Other
Other
Other	Other		Principal transactions	$	—	$	(2)	$	(1)	$	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 ~~Raymond James Bank and TriState Capital Bank~~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 $7$6 million as of ~~March~~December 31, 2023 and $8$3 million as of September 30, ~~2022.~~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 ~~2022~~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
		Collateralized agreements																	Collateralized agreements			Collateralized financings
$ in millions	$ in millions		Reverse repurchase agreements		Securities borrowed		Total		Repurchase agreements		Securities loaned		Total		$ in millions	Reverse repurchase agreements	Securities borrowed	Total		Repurchase agreements	Securities loaned		Total
March 31, 2023
December 31, 2023
Gross amounts of recognized assets/liabilities
Gross amounts of recognized assets/liabilities
Gross amounts of recognized assets/liabilities	Gross amounts of recognized assets/liabilities		$	167	$	212	$	379	$	150	$	177	$	327
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	Gross amounts offset on the Condensed Consolidated Statements of Financial Condition		—		—		—		—		—		—
Net amounts included in the Condensed Consolidated Statements of Financial Condition	Net amounts included in the Condensed Consolidated Statements of Financial Condition		167		212		379		150		177		327
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition		(167)		(211)		(378)		(150)		(173)		(323)
Net amounts	Net amounts		$	—	$	1	$	1	$	—	$	4	$	4
September 30, 2022

September 30, 2023
September 30, 2023
September 30, 2023
Gross amounts of recognized assets/liabilities
Gross amounts of recognized assets/liabilities
Gross amounts of recognized assets/liabilities	Gross amounts of recognized assets/liabilities		$	367	$	337	$	704	$	294	$	172	$	466
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	Gross amounts offset on the Condensed Consolidated Statements of Financial Condition		—		—		—		—		—		—
Net amounts included in the Condensed Consolidated Statements of Financial Condition	Net amounts included in the Condensed Consolidated Statements of Financial Condition		367		337		704		294		172		466
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition		(367)		(327)		(694)		(294)		(162)		(456)
Net amounts	Net amounts		$	—	$	10	$	10	$	—	$	10	$	10

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


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

Repurchase agreements and securities loaned accounted for as secured borrowings

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


$ in millions	$ in millions	Overnight and continuous		Up to 30 days		30-90 days		Greater than 90 days		Total		$ in millions	Overnight and continuous	Up to 30 days	30-90 days	Greater than 90 days	Total
March 31, 2023
December 31, 2023
Repurchase agreements:	Repurchase agreements:
Repurchase agreements:
Repurchase agreements:
Government and agency obligations
Government and agency obligations
Government and agency obligations	Government and agency obligations	$	115	$	—	$	—	$	—	$	115
Agency MBS and agency CMOs	Agency MBS and agency CMOs	35		—		—		—		35
Total repurchase agreements	Total repurchase agreements	150		—		—		—		150
Securities loaned:	Securities loaned:
Equity securities	Equity securities	177		—		—		—		177
Equity securities
Equity securities
Total collateralized financings	Total collateralized financings	$	327	$	—	$	—	$	—	$	327
September 30, 2022

September 30, 2023
September 30, 2023
September 30, 2023
Repurchase agreements:	Repurchase agreements:
Repurchase agreements:
Repurchase agreements:
Government and agency obligations
Government and agency obligations
Government and agency obligations	Government and agency obligations	$	183	$	—	$	—	$	—	$	183
Agency MBS and agency CMOs	Agency MBS and agency CMOs	111		—		—		—		111
Total repurchase agreements	Total repurchase agreements	294		—		—		—		294
Securities loaned:	Securities loaned:
Equity securities	Equity securities	172		—		—		—		172
Equity securities
Equity securities
Total collateralized financings	Total collateralized financings	$	466	$	—	$	—	$	—	$	466

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	$ in millions	March 31, 2023		September 30, 2022		$ in millions	December 31, 2023	September 30, 2023
Collateral we received that was available to be delivered or repledged	Collateral we received that was available to be delivered or repledged	$	2,993	$	3,812
Collateral that we delivered or repledged	Collateral that we delivered or repledged	$	766	$	947


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

Encumbered assets

We pledge certain of our assets, primarily trading assets, to collateralize repurchase agreements or other secured borrowings, maintain lines of credit, ~~to maintain our ability to hold certain deposits,~~ or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments. We pledge certain of our bank loans and available-for-sale securities with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed. We also pledge certain loans and available-for-sale securities with the FRB to be eligible to participate in the Federal Reserve’s discount window program and to participate in certain deposit programs. ~~During the quarter ended March 31, 2023, Raymond James Bank increased its borrowing capacity with the FHLB through the pledge of additional available-for-sale securities.~~ The FHLB does not have the ability to sell or repledge such securities until they are borrowed against. For additional information regarding our outstanding FHLB advances see Note ~~14.~~13.

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

$ in millions March 31, 2023 September 30, 2022
Had the right to deliver or repledge $ 982 $ 1,276
Did not have the right to deliver or repledge $ 4,753 $ 63
Bank loans, net pledged with the:
FHLB $ 8,768 $ 8,009
FRB 793 791
Total bank loans, net pledged with the FHLB and FRB $ 9,561 $ 8,800


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

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


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

NOTE 7 – BANK LOANS, NET

Bank client receivables are comprised of loans originated or purchased by our Bank segment and include securities-based loans (“SBL”), corporate loans (commercial and industrial (“C&I”) loans, commercial real estate (“CRE”) loans, and real estate investment trust (“REIT”) loans), residential mortgage loans, and tax-exempt loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured. We segregate our loan portfolio into six loan portfolio segments: SBL, C&I, CRE, REIT, residential mortgage, and tax-exempt. See Note 2 of our ~~2022~~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, ~~and~~ deferred origination fees and ~~costs)~~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 ~~2022~~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	$ in millions	March 31, 2023			September 30, 2022			$ in millions	December 31, 2023		September 30, 2023
SBL	SBL	$	14,227		$	15,297
C&I loans	C&I loans	11,259			11,173
CRE loans	CRE loans	7,054			6,549
REIT loans	REIT loans	1,717			1,592
Residential mortgage loans	Residential mortgage loans	8,079			7,386
Tax-exempt loans	Tax-exempt loans	1,643			1,501
Total loans held for investment	Total loans held for investment	43,979			43,498
Held for sale loans	Held for sale loans	119			137
Total loans held for sale and investment	Total loans held for sale and investment	44,098			43,635
Allowance for credit losses	Allowance for credit losses	(415)			(396)
Bank loans, net (1)	Bank loans, net (1)	$	43,683		$	43,239

ACL as a % of total loans held for investment	ACL as a % of total loans held for investment	0.94		%	0.91		%
ACL as a % of total loans held for investment
ACL as a % of total loans held for investment									1.08	%	1.07	%
Accrued interest receivable on bank loans (included in “Other receivables, net”)	Accrued interest receivable on bank loans (included in “Other receivables, net”)	$	192		$	137

(1)Bank loans, net as of ~~March~~December 31, 2023 and September 30, ~~2022~~2023 are presented net of ~~$89~~$37 million and ~~$112~~$52 million, respectively, of net unamortized discount, unearned income, and deferred loan fees and costs. The net unamortized discount primarily arose from the acquisition date fair value purchase discount on bank loans acquired in the TriState Capital Holdings, Inc. acquisition. See Note 3 of our ~~2022~~2023 Form 10-K for ~~further~~additional information.

See Note 6 for ~~more~~additional information regarding bank loans ~~net~~ pledged with the FHLB and FRB and Note 1413 for ~~more~~additional information regarding borrowings from the FHLB.

Held for sale loans

We originated or purchased ~~$624~~$441 million and ~~$1.43 billion~~$802 million of loans held for sale during the three ~~and six~~ months ended ~~March~~December 31, 2023 ~~respectively,~~ and ~~$999 million and $1.97 billion during the three and six months ended March 31,~~ 2022, respectively. The majority of these loans were purchases of the guaranteed portions of Small Business Administration (“SBA”) loans that were initially classified as loans held for sale upon purchase and subsequently transferred to trading instruments once they had been securitized into pools. Proceeds from the sales of these loans held for sale and not securitized amounted to ~~$155~~$102 million and ~~$353~~$198 million during the three ~~and six~~ months ended ~~March~~December 31, 2023 ~~respectively,~~ and ~~$339 million and $677 million during the three and six months ended March 31,~~ 2022, respectively. Net gains resulting from such sales were insignificant for each of the three ~~and six~~ months ended ~~March~~December 31, 2023 and 2022.


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

Purchases and sales of loans held for investment

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


$ in millions	$ in millions	C&I loans		CRE loans		REIT loans		Residential mortgage loans		Total
Three months ended March 31, 2023
$ in millions
$ in millions												C&I loans	CRE loans	REIT loans	Residential mortgage loans	Total
Three months ended December 31, 2023
Purchases
Purchases
Purchases	Purchases	$	194	$	—	$	—	$	110	$	304
Sales	Sales	$	147	$	—	$	—	$	—	$	147
Six months ended March 31, 2023

Three months ended December 31, 2022

Three months ended December 31, 2022

Three months ended December 31, 2022
Purchases
Purchases
Purchases	Purchases	$	357	$	39	$	24	$	300	$	720
Sales	Sales	$	147	$	—	$	—	$	—	$	147
Three months ended March 31, 2022
Purchases		$	441	$	—	$	—	$	223	$	664
Sales		$	61	$	—	$	—	$	—	$	61
Six months ended March 31, 2022
Purchases		$	780	$	—	$	—	$	407	$	1,187
Sales		$	112	$	—	$	—	$	—	$	112

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 ~~2022~~2023 Form 10-K, corporate loan sales generally occur as part of our credit management activities.

~~Aging analysis of~~Past due, nonaccrual, and modified loans ~~held for investment~~

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


$ in millions	$ 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		$ 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, 2023
December 31, 2023																December 31, 2023
SBL	SBL	$	—	$	—	$	—	$	—	$	—	$	14,227	$	14,227
C&I loans	C&I loans	—		—		—		32		—		11,227		11,259
CRE loans	CRE loans	—		—		—		34		18		7,002		7,054
REIT loans	REIT loans	—		—		—		—		—		1,717		1,717
Residential mortgage loans	Residential mortgage loans	4		—		4		—		15		8,060		8,079
Tax-exempt loans	Tax-exempt loans	—		—		—		—		—		1,643		1,643
Total loans held for investment	Total loans held for investment	$	4	$	—	$	4	$	66	$	33	$	43,876	$	43,979

September 30, 2022
September 30, 2023
September 30, 2023
September 30, 2023
SBL	SBL	$	—	$	—	$	—	$	—	$	—	$	15,297	$	15,297
C&I loans	C&I loans	—		—		—		32		—		11,141		11,173
CRE loans	CRE loans	—		—		—		12		16		6,521		6,549
REIT loans	REIT loans	—		—		—		—		—		1,592		1,592
Residential mortgage loans	Residential mortgage loans	4		—		4		—		14		7,368		7,386
Tax-exempt loans	Tax-exempt loans	—		—		—		—		—		1,501		1,501
Total loans held for investment	Total loans held for investment	$	4	$	—	$	4	$	44	$	30	$	43,420	$	43,498

The preceding table includes ~~$90~~$87 million and ~~$63~~$96 million at ~~March~~December 31, 2023 and September 30, ~~2022,~~2023, respectively, of nonaccrual loans which were current pursuant to their contractual terms. ~~The table also includes troubled debt restructurings~~

In the normal course of ~~$20~~business, we may modify the original terms of a loan agreement. In certain circumstances, we may agree to modify the original terms of a loan agreement to a borrower experiencing financial difficulty, which may include a borrower in default, financial distress, bankruptcy or other circumstances. Loan modifications to borrowers experiencing financial difficulty typically involve principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay (i.e., payment deferral greater than six months), or a term extension, or any combination thereof. Modified loans to borrowers experiencing financial difficulty are subject to our nonaccrual policies. Loans to borrowers experiencing financial difficulty which were modified during the three months ended December 31, 2023 were not significant.

Prior to September 30, 2023, loan modifications to borrowers experiencing financial difficulty, to the extent significant, were considered TDRs. On October 1, 2023, we adopted ASU 2022-02, which eliminated the recognition and measurement guidance for TDRs. See Note 2 for additional information about this guidance. As of September 30, 2023, TDRs were $21 million, $8$3 million, and $10 million for C&I loans, CRE loans and residential first mortgage loans, ~~respectively, at March 31, 2023, and $11 million, $9 million, and $10 million for C&I loans, CRE loans and residential first mortgage loans, respectively, at September 30, 2022.~~respectively.


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

Other real estate owned, included in “Other assets” on our Condensed Consolidated Statements of Financial Condition, was insignificant at both ~~March~~December 31, 2023 and September 30, ~~2022.~~2023.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

Collateral-dependent loans

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

Loan type ($ in millions)

Nature of collateral

March 31, 2023

September 30, 2022

Loan type ($ in millions)

Nature of collateral

December 31, 2023

September 30, 2023

C&I loans

Commercial real estate and other business assets

C&I loans

CRE loans

Retail, industrial, office and health care real estate

Residential mortgage loans

Single family homes

Residential mortgage loans

CRE collateral dependent loans as of December 31, 2023 included two loans that were placed on nonaccrual status with an associated allowance during the three months ended December 31, 2023. The recorded ~~investment~~investments in residential mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process ~~was $5~~were $3 million ~~at both March~~and $4 million as of December 31, 2023 and September 30, ~~2022.~~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.


			March 31, 2023
			Loans by origination fiscal year
			As of and for the three months ended December 31, 2023
			As of and for the three months ended December 31, 2023
			As of and for the three months ended December 31, 2023
		Loans by origination fiscal year
$ in millions
$ in millions
$ in millions	$ in millions		2023		2022		2021		2020		2019		Prior		Revolving loans		Total			2024				2023				2022				2021				2020					Prior				Revolving loans						Total
SBL	SBL
Risk rating:	Risk rating:
Risk rating:
Risk rating:
Pass
Pass
Pass	Pass		$	20	$	18	$	92	$	41	$	26	$	82	$	13,948	$	14,227		$	31			$	47			$	19			$	82			$	36				$	74			$	14,339					$	14,628
Special mention	Special mention		—		—		—		—		—		—		—		—		Special mention																			—											—
Substandard			—		—		—		—		—		—		—		—
Substandard (1)																			Substandard (1)			19																		—										19
Doubtful	Doubtful		—		—		—		—		—		—		—		—		Doubtful																			—											—
Total SBL	Total SBL		$	20	$	18	$	92	$	41	$	26	$	82	$	13,948	$	14,227	Total SBL			$	50			$	47			$	19			$	82			$	36				$	74			$	14,339					$	14,647
Gross charge-offs																			Gross charge-offs			$	—			$	—			$	—			$	—			$	—				$	—			$	—					$	—


C&I loans	C&I loans

C&I loans

C&I loans
Risk rating:	Risk rating:
Risk rating:
Risk rating:
Pass
Pass
Pass	Pass	$	454	$	1,193	$	1,254	$	1,223	$	1,097	$	3,272	$	2,526	$	11,019		$	138				$	732					$	1,206					$	1,067					$	877					$	3,457					$	2,784						$	10,261
Special mention	Special mention	—		10		29		38		—		1		7		85		Special mention					—						5						—						68						—						3							76
Substandard	Substandard	—		—		—		40		18		84		13		155		Substandard										—						29						62						59						16							166
Doubtful	Doubtful	—		—		—		—		—		—		—		—		Doubtful																										—														—
Total C&I loans	Total C&I loans	$	454	$	1,203	$	1,283	$	1,301	$	1,115	$	3,357	$	2,546	$	11,259	Total C&I loans			$	138				$	732					$	1,211					$	1,096					$	1,007					$	3,516					$	2,803						$	10,503
Gross charge-offs																		Gross charge-offs			$	—				$	—					$	—					$	1					$	—					$	5					$	—						$	6


CRE loans	CRE loans

CRE loans

CRE loans
Risk rating:	Risk rating:
Risk rating:
Risk rating:
Pass
Pass
Pass	Pass	$	613	$	2,346	$	1,195	$	784	$	654	$	1,180	$	149	$	6,921		$	131			$	1,182				$	2,317					$	1,107					$	739					$	1,411					$	255						$	7,142
Special mention	Special mention	7		—		—		36		—		22		—		65		Special mention			—				6								—						14						19						—							39
Substandard	Substandard	—		—		—		2		13		53		—		68		Substandard									—					5						32						113						—							150
Doubtful	Doubtful	—		—		—		—		—		—		—		—		Doubtful																								—														—
Total CRE loans	Total CRE loans	$	620	$	2,346	$	1,195	$	822	$	667	$	1,255	$	149	$	7,054	Total CRE loans			$	131			$	1,188				$	2,317					$	1,112					$	785					$	1,543					$	255						$	7,331
Gross charge offs																		Gross charge offs			$	—			$	—				$	—					$	—					$	—					$	2					$	—						$	2


REIT loans	REIT loans

REIT loans

REIT loans
Risk rating:	Risk rating:
Risk rating:
Risk rating:
Pass
Pass
Pass	Pass	$	266	$	202	$	214	$	101	$	55	$	197	$	682	$	1,717		$	51			$	236			$	184			$	232			$	103			$	311			$	580				$	1,697
Special mention	Special mention	—		—		—		—		—		—		—		—		Special mention																			—										—
Substandard	Substandard	—		—		—		—		—		—		—		—		Substandard																			—										—
Doubtful	Doubtful	—		—		—		—		—		—		—		—		Doubtful																			—										—
Total REIT loans	Total REIT loans	$	266	$	202	$	214	$	101	$	55	$	197	$	682	$	1,717	Total REIT loans			$	51			$	236			$	184			$	232			$	103			$	311			$	580				$	1,697
Gross charge-offs																		Gross charge-offs			$	—			$	—			$	—			$	—			$	—			$	—			$	—				$	—


Residential mortgage loans	Residential mortgage loans

Residential mortgage loans

Residential mortgage loans
Risk rating:	Risk rating:
Risk rating:
Risk rating:
Pass
Pass
Pass	Pass	$	915	$	2,956	$	1,661	$	965	$	455	$	1,057	$	40	$	8,049		$	323				$	1,747				$	2,857			$	1,588				$	903				$	1,388				$	33					$	8,839
Special mention	Special mention	—		—		1		—		2		5		—		8		Special mention					—					2									—					5					—						7
Substandard	Substandard	—		2		—		—		—		20		—		22		Substandard					—					2									—					13					—						15
Doubtful	Doubtful	—		—		—		—		—		—		—		—		Doubtful																						—												—
Total residential mortgage loans	Total residential mortgage loans	$	915	$	2,958	$	1,662	$	965	$	457	$	1,082	$	40	$	8,079	Total residential mortgage loans			$	323				$	1,747				$	2,861			$	1,588				$	903				$	1,406				$	33					$	8,861
Gross charge-offs																		Gross charge-offs			$	—				$	—				$	—			$	—				$	—				$	—				$	—					$	—


Tax-exempt loans	Tax-exempt loans

Tax-exempt loans

Tax-exempt loans
Risk rating:	Risk rating:
Risk rating:
Risk rating:
Pass
Pass
Pass	Pass	$	165	$	298	$	165	$	56	$	108	$	851	$	—	$	1,643		$	—			$	57			$	270			$	160			$	54			$	870			$	—				$	1,411
Special mention	Special mention	—		—		—		—		—		—		—		—		Special mention																			—										—
Substandard	Substandard	—		—		—		—		—		—		—		—		Substandard																			—										—
Doubtful	Doubtful	—		—		—		—		—		—		—		—		Doubtful																			—										—
Total tax-exempt loans	Total tax-exempt loans	$	165	$	298	$	165	$	56	$	108	$	851	$	—	$	1,643	Total tax-exempt loans			$	—			$	57			$	270			$	160			$	54			$	870			$	—				$	1,411
Gross charge-offs																		Gross charge-offs			$	—			$	—			$	—			$	—			$	—			$	—			$	—				$	—

(1)

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

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

September 30, 2022
Loans by origination fiscal year
$ in millions 2022 2021 2020 2019 2018 Prior Revolving loans Total
SBL
Risk rating:
Pass $ 14 $ 27 $ 72 $ 44 $ 36 $ 41 $ 15,063 $ 15,297
Special mention — — — — — — — —
Substandard — — — — — — — —
Doubtful — — — — — — — —
Total SBL $ 14 $ 27 $ 72 $ 44 $ 36 $ 41 $ 15,063 $ 15,297

C&I loans
Risk rating:
Pass $ 1,011 $ 1,448 $ 1,301 $ 1,124 $ 1,389 $ 2,200 $ 2,380 $ 10,853
Special mention 10 28 3 37 — 82 6 166
Substandard 1 — 60 28 40 6 14 149
Doubtful — — — — 5 — — 5
Total C&I loans $ 1,022 $ 1,476 $ 1,364 $ 1,189 $ 1,434 $ 2,288 $ 2,400 $ 11,173

CRE loans
Risk rating:
Pass $ 1,916 $ 1,345 $ 892 $ 707 $ 816 $ 551 $ 176 $ 6,403
Special mention — 1 — — 36 2 — 39
Substandard — — 14 17 46 30 — 107
Doubtful — — — — — — — —
Total CRE loans $ 1,916 $ 1,346 $ 906 $ 724 $ 898 $ 583 $ 176 $ 6,549

REIT loans
Risk rating:
Pass $ 169 $ 230 $ 96 $ 53 $ 40 $ 222 $ 782 $ 1,592
Special mention — — — — — — — —
Substandard — — — — — — — —
Doubtful — — — — — — — —
Total REIT loans $ 169 $ 230 $ 96 $ 53 $ 40 $ 222 $ 782 $ 1,592

Residential mortgage loans
Risk rating:
Pass $ 2,984 $ 1,704 $ 1,023 $ 477 $ 290 $ 843 $ 35 $ 7,356
Special mention 1 1 — 2 — 4 — 8
Substandard 1 — — — 1 20 — 22
Doubtful — — — — — — — —
Total residential mortgage loans $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386

Tax-exempt loans
Risk rating:
Pass $ 264 $ 169 $ 56 $ 115 $ 192 $ 705 $ — $ 1,501
Special mention — — — — — — — —
Substandard — — — — — — — —
Doubtful — — — — — — — —
Total tax-exempt loans $ 264 $ 169 $ 56 $ 115 $ 192 $ 705 $ — $ 1,501


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 ~~FICO score and by~~ LTV ratio at ~~origination.~~origination and by FICO score.


		March 31, 2023
		Loans by origination fiscal year
		December 31, 2023
		December 31, 2023
		December 31, 2023
		Loans by origination fiscal year
		Loans by origination fiscal year
		Loans by origination fiscal year
$ in millions
$ in millions
$ in millions	$ in millions	2023		2022		2021		2020		2019		Prior		Revolving loans		Total
FICO score:	FICO score:
FICO score:
FICO score:
Below 600
Below 600
Below 600	Below 600	$	6	$	1	$	3	$	2	$	3	$	55	$	—	$	70
600 - 699	600 - 699	51		155		107		88		31		83		4		519
600 - 699
600 - 699
700 - 799
700 - 799
700 - 799	700 - 799	718		2,383		1,265		700		334		647		25		6,072
800 +	800 +	139		416		283		174		84		293		8		1,397
800 +
800 +
FICO score not available	FICO score not available	1		3		4		1		5		4		3		21
FICO score not available
FICO score not available
Total
Total
Total	Total	$	915	$	2,958	$	1,662	$	965	$	457	$	1,082	$	40	$	8,079

LTV ratio:	LTV ratio:

LTV ratio:

LTV ratio:
Below 80%
Below 80%
Below 80%	Below 80%	$	639	$	2,262	$	1,300	$	755	$	341	$	832	$	36	$	6,165
80%+	80%+	276		696		362		210		116		250		4		1,914
80%+
80%+
Total	Total	$	915	$	2,958	$	1,662	$	965	$	457	$	1,082	$	40	$	8,079
Total
Total


			September 30, 2022
			Loans by origination fiscal year
			September 30, 2023
			September 30, 2023
			September 30, 2023
		Loans by origination fiscal year
$ in millions
$ in millions
$ in millions	$ in millions		2022		2021		2020		2019		2018		Prior		Revolving loans		Total			2022				2021				2020				2019				2018				Prior				Revolving loans				Total
FICO score:	FICO score:
Below 600
Below 600
Below 600	Below 600		$	1	$	3	$	2	$	3	$	1	$	54	$	—	$	64		$	7			$	1			$	3			$	2			$	3			$	55			$	—			$	71
600 - 699	600 - 699		155		112		90		32		20		68		4		481		600 - 699			99				154				106				83				30				79				4				555
700 - 799	700 - 799		2,403		1,301		744		353		219		470		22		5,512		700 - 799			1,381				2,327				1,218				666				320				609				20				6,541
800 +	800 +		424		284		184		87		48		273		6		1,306		800 +			274				407				279				168				77				265				6				1,476
FICO score not available	FICO score not available		3		5		3		4		3		2		3		23		FICO score not available			4				2				3				1				5				3				1				19
Total	Total		$	2,986	$	1,705	$	1,023	$	479	$	291	$	867	$	35	$	7,386	Total			$	1,765			$	2,891			$	1,609			$	920			$	435			$	1,011			$	31			$	8,662

LTV ratio:	LTV ratio:
LTV ratio:
LTV ratio:
Below 80%
Below 80%
Below 80%	Below 80%		$	2,287	$	1,333	$	797	$	358	$	226	$	661	$	31	$	5,693		$	1,244			$	2,218			$	1,257			$	716			$	323			$	780			$	29			$	6,567
80%+	80%+		699		372		226		121		65		206		4		1,693		80%+			521				673				352				204				112				231				2				2,095
Total	Total		$	2,986	$	1,705	$	1,023	$	479	$	291	$	867	$	35	$	7,386	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	$ in millions	SBL			C&I loans			CRE loans			REIT loans			Residential mortgage loans			Tax-exempt loans			Total			$ in millions	SBL		C&I loans		CRE loans		REIT loans		Residential mortgage loans		Tax-exempt loans		Total
Three months ended March 31, 2023
Three months ended December 31, 2023																							Three months ended December 31, 2023

Balance at beginning of period	Balance at beginning of period	$	4		$	222		$	91		$	15		$	74		$	2		$	408

Provision for credit losses		1			18			9			—			—			—			28

Balance at beginning of period

Balance at beginning of period

Provision/(benefit) for credit losses

Provision/(benefit) for credit losses

Provision/(benefit) for credit losses

Net (charge-offs)/recoveries:	Net (charge-offs)/recoveries:
Net (charge-offs)/recoveries:
Net (charge-offs)/recoveries:
Charge-offs
Charge-offs
Charge-offs	Charge-offs	—			(20)			—			—			—			—			(20)
Recoveries	Recoveries	—			—			—			—			—			—			—
Net (charge-offs)/recoveries	Net (charge-offs)/recoveries	—			(20)			—			—			—			—			(20)
Foreign exchange translation adjustment	Foreign exchange translation adjustment	—			(1)			—			—			—			—			(1)
Balance at end of period	Balance at end of period	$	5		$	219		$	100		$	15		$	74		$	2		$	415
ACL by loan portfolio segment as a % of total ACL	ACL by loan portfolio segment as a % of total ACL	1.2		%	52.8		%	24.1		%	3.6		%	17.8		%	0.5		%	100.0		%	ACL by loan portfolio segment as a % of total ACL	1.5	%	44.1	%	36.3	%	3.5	%	14.2	%	0.4	%	100.0	%

Six months ended March 31, 2023
Three months ended December 31, 2022
Three months ended December 31, 2022
Three months ended December 31, 2022
Balance at beginning of period
Balance at beginning of period
Balance at beginning of period	Balance at beginning of period	$	3		$	226		$	87		$	21		$	57		$	2		$	396

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

Provision/(benefit) for credit losses

Provision/(benefit) for credit losses

Net (charge-offs)/recoveries:	Net (charge-offs)/recoveries:
Net (charge-offs)/recoveries:
Net (charge-offs)/recoveries:
Charge-offs
Charge-offs
Charge-offs	Charge-offs	—			(24)			(1)			—			—			—			(25)
Recoveries	Recoveries	—			—			3			—			—			—			3
Net (charge-offs)/recoveries	Net (charge-offs)/recoveries	—			(24)			2			—			—			—			(22)
Foreign exchange translation adjustment	Foreign exchange translation adjustment	—			(1)			—			—			—			—			(1)
Balance at end of period	Balance at end of period	$	5		$	219		$	100		$	15		$	74		$	2		$	415
ACL by loan portfolio segment as a % of total ACL	ACL by loan portfolio segment as a % of total ACL	1.2		%	52.8		%	24.1		%	3.6		%	17.8		%	0.5		%	100.0		%	ACL by loan portfolio segment as a % of total ACL	1.0	%	54.4	%	22.3	%	3.7	%	18.1	%	0.5	%	100.0	%

Three months ended March 31, 2022
Balance at beginning of period		$	3		$	179		$	72		$	22		$	30		$	2		$	308

Provision/(benefit) for credit losses		—			17			(1)			3			2			—			21
Net (charge-offs)/recoveries:
Charge-offs		—			(1)			—			—			—			—			(1)
Recoveries		—			—			—			—			—			—			—
Net (charge-offs)/recoveries		—			(1)			—			—			—			—			(1)
Foreign exchange translation adjustment		—			—			—			—			—			—			—
Balance at end of period		$	3		$	195		$	71		$	25		$	32		$	2		$	328
ACL by loan portfolio segment as a % of total ACL		0.9		%	59.5		%	21.6		%	7.6		%	9.8		%	0.6		%	100.0		%

Six months ended March 31, 2022
Balance at beginning of period		$	4		$	191		$	66		$	22		$	35		$	2		$	320

Provision/(benefit) for credit losses		(1)			7			5			3			(4)			��			10
Net (charge-offs)/recoveries:
Charge-offs		—			(3)			—			—			—			—			(3)
Recoveries		—			—			—			—			1			—			1
Net (charge-offs)/recoveries		—			(3)			—			—			1			—			(2)
Foreign exchange translation adjustment		—			—			—			—			—			—			—
Balance at end of period		$	3		$	195		$	71		$	25		$	32		$	2		$	328
ACL by loan portfolio segment as a % of total ACL		0.9		%	59.5		%	21.6		%	7.6		%	9.8		%	0.6		%	100.0		%

The allowance for credit losses on held for investment bank loans increased ~~$7 million and $19~~$5 million during the three ~~and six~~ months ended ~~March~~December 31, 2023 ~~respectively,~~primarily resulting from ~~a $28 million and $42 million provision~~provisions for credit losses ~~respectively,~~of $12 million, partially offset by net charge-offs ~~which were primarily related to two C&I loans.~~of certain loans during the period. The provision for credit losses for the three months ended ~~March~~December 31, 2023 primarily reflected the impacts of ~~charge-offs of certain loans during the quarter,~~specific reserves in our C&I and CRE loan portfolios, loan downgrades, inand charge-offs, partially offset by the CRE and C&I loan portfolios, and additional volatility in the macroeconomic outlook. The provision for credit losses for the six months ended March 31, 2023 was primarily due to a weaker macroeconomic outlook, net charge-offs, and thefavorable impact of loan ~~growth during~~repayments and sales, which had a larger impact on the ~~period.~~current quarter expense than provisions on new loans.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was ~~$21~~$20 million and $22 million at ~~March~~December 31, 2023 and ~~$19 million at both December 31, 2022 and~~ September 30, ~~2022.~~2023, respectively.

NOTE 8 – LOANS TO FINANCIAL ADVISORS, NET

Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 of our ~~2022~~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	$ in millions	March 31, 2023			September 30, 2022			$ in millions	December 31, 2023		September 30, 2023
Affiliated with the firm as of period-end (1)	Affiliated with the firm as of period-end (1)	$	1,130		$	1,173
No longer affiliated with the firm as of period-end (2)	No longer affiliated with the firm as of period-end (2)	8			8
Total loans to financial advisors	Total loans to financial advisors	1,138			1,181
Allowance for credit losses	Allowance for credit losses	(30)			(29)
Loans to financial advisors, net	Loans to financial advisors, net	$	1,108		$	1,152
Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”)	Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”)	$	5		$	5
Allowance for credit losses as a percent of total loans to financial advisors	Allowance for credit losses as a percent of total loans to financial advisors	2.64		%	2.46		%	Allowance for credit losses as a percent of total loans to financial advisors	2.87	%	2.74	%

(1)These loans were predominantly current.

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


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

NOTE 9 – VARIABLE INTEREST ENTITIES

A VIE requires consolidation by the entity’s primary beneficiary. We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. Refer to Note 2 of our ~~2022~~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	$ in millions	Aggregate assets		Aggregate liabilities		$ in millions	Aggregate assets	Aggregate liabilities
March 31, 2023
December 31, 2023						December 31, 2023

LIHTC funds
LIHTC funds
LIHTC funds	LIHTC funds	$	55	$	6
Restricted Stock Trust Fund	Restricted Stock Trust Fund	26		26
Total	Total	$	81	$	32

September 30, 2022
September 30, 2023
September 30, 2023
September 30, 2023

LIHTC funds
LIHTC funds
LIHTC funds	LIHTC funds	$	59	$	6
Restricted Stock Trust Fund	Restricted Stock Trust Fund	17		17
Total	Total	$	76	$	23

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

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	$ in millions	March 31, 2023		September 30, 2022		$ in millions	December 31, 2023	September 30, 2023
Assets:	Assets:					Assets:
Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash	Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash	$	5	$	5

Other assets	Other assets	50		54

Other assets

Other assets
Total assets	Total assets	$	55	$	59
Liabilities:	Liabilities:					Liabilities:
Other payables	Other payables	$	—	$	—

Total liabilities	Total liabilities	$	—	$	—
Total liabilities
Total liabilities
Noncontrolling interests	Noncontrolling interests	$	(26)	$	(26)

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

As discussed in Note 2 of our ~~2022~~2023 Form 10-K, we have concluded that for certain VIEs we are not the primary beneficiary and therefore do not consolidate these VIEs. Such VIEs primarily include certain LIHTC funds, our interests in certain limited partnerships which are part of our private equity portfolio (“Private Equity Interests”), and other limited partnerships. Our risk of loss for these VIEs is limited to our investments in, advances to, and/or receivables due from these VIEs.


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

Aggregate assets, liabilities, and risk of loss

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


		March 31, 2023						September 30, 2022							December 31, 2023			September 30, 2023
$ in millions	$ in millions	Aggregate assets		Aggregate liabilities		Our risk of loss		Aggregate assets		Aggregate liabilities		Our risk of loss		$ in millions	Aggregate assets	Aggregate liabilities	Our risk of loss		Aggregate assets	Aggregate liabilities	Our risk of loss
LIHTC funds	LIHTC funds	$	8,518	$	2,759	$	73	$	7,752	$	2,584	$	136
Private Equity Interests	Private Equity Interests	2,317		553		99		2,177		448		90
Other	Other	109		70		3		159		101		8
Total	Total	$	10,944	$	3,382	$	175	$	10,088	$	3,133	$	234

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 2022 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, 2023 evaluation date, evaluating balances as of December 31, 2022. 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 consider 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 consider regulatory changes, as well as company-specific factors such as 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)~~

~~NOTE 11~~ - OTHER ASSETS

The following table details the components of other ~~assets.~~assets as of the dates indicated. See Note 2 of our ~~2022~~2023 Form 10-K for a discussion of ~~the~~our accounting polices related to certain of these components.


$ in millions	$ in millions	March 31, 2023		September 30, 2022
$ in millions
$ in millions						December 31, 2023	September 30, 2023
Investments in company-owned life insurance policies	Investments in company-owned life insurance policies	$	1,077	$	944
Property and equipment, net	Property and equipment, net	515		503
Lease right of use (“ROU”) assets		476		480
Lease right-of-use (“ROU”) assets
Prepaid expenses	Prepaid expenses	249		173

Investments in FHLB and FRB stock	Investments in FHLB and FRB stock	123		88

Investments in FHLB and FRB stock
Investments in FHLB and FRB stock
Client-owned fractional shares
All other	All other	244		264
Total other assets	Total other assets	$	2,684	$	2,452

See Note 13 of our ~~2022~~2023 Form 10-K for ~~further~~additional information regarding our property and equipment and Note 1211 of this Form 10-Q and Note 14 of our ~~2022~~2023 Form 10-K for ~~further~~additional information regarding our leases.

NOTE 1211 – 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 ~~2022~~2023 Form 10-K for additional information related to our leases, including a discussion of our accounting policies.

$ in millions March 31, 2023 September 30, 2022
ROU assets (included in Other assets) $ 476 $ 480
Lease liabilities (included in Other payables) $ 478 $ 482


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

Lease liabilities as of ~~March~~December 31, 2023 excluded ~~$53~~$42 million of minimum lease payments related to lease arrangements that were legally binding but had not yet commenced. These leases are estimated to commence between dates later in fiscal year ~~2023 and~~2024 through fiscal year 2025 with lease terms ranging from ~~two~~four to 13ten 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,
		Three months ended December 31,
		Three months ended December 31,
		Three months ended December 31,
$ in millions
$ in millions
$ in millions	$ in millions	2023		2022		2023		2022
Lease costs	Lease costs	$	32	$	29	$	63	$	57
Lease costs
Lease costs
Variable lease costs	Variable lease costs	$	8	$	8	$	15	$	15
Variable lease costs
Variable lease costs

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.

3231


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

NOTE 1312 – 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.~~deposits held by either of our bank subsidiaries. The following table presents a summary of bank deposits, excluding affiliate deposits, as well as the weighted-average interest rates on such deposits. The calculation of the weighted-average rates was based on the actual deposit balances and rates at each respective period end.


			March 31, 2023				September 30, 2022
		December 31, 2023																December 31, 2023						September 30, 2023
$ in millions	$ in millions		Balance		Weighted-average rate		Balance		Weighted-average rate		$ in millions	Balance			Weighted-average rate				Balance				Weighted-average rate
Money market and savings accounts	Money market and savings accounts		$	43,136	1.24	%	$	44,446	1.01	%	Money market and savings accounts	$	31,315	1.96		1.96	%			$	32,268	1.85			1.85	%
Interest-bearing demand deposits	Interest-bearing demand deposits		7,809		4.45	%	5,286		2.77	%	Interest-bearing demand deposits	20,423		5.02		5.02	%			18,376		4.98			4.98	%
Certificates of deposit	Certificates of deposit		2,656		4.15	%	999		1.85	%	Certificates of deposit	2,885		4.63		4.63	%			2,831		4.41			4.41	%
Non-interest-bearing demand deposits	Non-interest-bearing demand deposits		628		—		626		—
Total bank deposits	Total bank deposits		$	54,229	1.86	%	$	51,357	1.21	%	Total bank deposits	$	55,393	3.25		3.25	%			$	54,199	3.06			3.06	%

Money market and savings accounts in the preceding table included ~~$37.68~~$23.91 billion and ~~$38.71~~$25.36 billion as of ~~March~~December 31, 2023 and September 30, ~~2022,~~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”). ~~Money market and savings accounts also included direct accounts held by TriState Capital Bank on behalf of third-party clients. Interest-bearing demand~~Total bank deposits in the preceding table included ~~$2.75~~$14.48 billion and $13.59 billion of deposits as of ~~March~~December 31, 2023 and September 30, 2023, respectively, associated with our Enhanced Savings Program (“ESP”), in which ~~Private Client Group~~PCG clients ~~may~~ 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 ~~estimated~~ amount of total bank deposits (which excludes affiliate deposits) that are FDIC-insured, as well as the ~~estimated~~ amount ~~of total bank deposits~~ that exceeded the FDIC insurance limit at each respective period.


$ in millions	$ in millions	March 31, 2023			September 30, 2022			$ in millions	December 31, 2023		September 30, 2023
FDIC-insured bank deposits	FDIC-insured bank deposits	$	47,475		$	43,520
Bank deposits exceeding FDIC insurance limit		6,754			7,837
Bank deposits exceeding FDIC insurance limit (1) (2)
Total bank deposits	Total bank deposits	$	54,229		$	51,357
FDIC-insured bank deposits as a % of total bank deposits	FDIC-insured bank deposits as a % of total bank deposits	88		%	85		%	FDIC-insured bank deposits as a % of total bank deposits	89	%	89	%

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

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

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


$ in millions	~~March~~December 31, 2023
Three months or less	$	3874
Over three through six months	2337
Over six through twelve months	2928
Over twelve months	1312
Total ~~estimated~~ certificates of deposit that exceeded the FDIC insurance limit(1)	$	~~103~~151

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


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

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


		Three months ended March 31,				Six months ended March 31,
		Three months ended December 31,
		Three months ended December 31,
		Three months ended December 31,
$ in millions
$ in millions
$ in millions	$ in millions	2023		2022		2023		2022
Money market and savings accounts	Money market and savings accounts	$	128	$	1	$	245	$	2
Money market and savings accounts
Money market and savings accounts
Interest-bearing demand deposits
Interest-bearing demand deposits
Interest-bearing demand deposits	Interest-bearing demand deposits	62		1		109		2
Certificates of deposit	Certificates of deposit	16		3		24		7
Certificates of deposit
Certificates of deposit
Total interest expense on deposits	Total interest expense on deposits	$	206	$	5	$	378	$	11
Total interest expense on deposits
Total interest expense on deposits

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. ~~Refer to~~See Note 52 of ~~this~~our 2023 Form ~~10-Q~~10-K for information regarding this interest rate swap, which has been designated and accounted for as a cash flow hedge.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

NOTE 1413 – OTHER BORROWINGS

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

March 31, 2023

September 30, 2022

December 31, 2023

September 30, 2023

$ in millions

Weighted average interest rate

Maturity date

Balance

Weighted average interest rate

Maturity date

Balance

$ in millions

Weighted-average interest rate

Maturity date

Balance

Weighted-average interest rate

Maturity date

Balance

FHLB advances:

Floating rate - term (1)

5.09

December 2023 - June 2024

850

3.32

December 2023

850

Floating rate - overnight (1)

N/A

Overnight

—

3.11

Overnight

140

Floating rate - term

Fixed rate

5.13

April 2023 - June 2023

700

3.45

December 2022

200

Total FHLB advances

1,550

1,190

Subordinated notes - fixed-to-floating (including an unaccreted premium of $2 and $2, respectively) (2)

5.75

May 2030

100

5.75

May 2030

100

Other

—

Subordinated notes - fixed-to-floating (including an unaccreted premium of $1 and $2, respectively)

Total other borrowings

1,650

1,291

Total other borrowings

~~(1) Interest~~

We use interest rate swaps to manage the risk of increases in interest rates onassociated with the majority our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate. See Note 2 of our 2023 Form 10-K and Note 5 of this Form 10-Q for information regarding these ~~advances reset daily.~~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.

~~(2) Incur~~

Subordinated notes

As of December 31, 2023, we had subordinated notes due May 2030 outstanding, with an aggregate principal amount of $98 million. Our subordinated notes incur interest at a fixed rate of 5.75% until May 2025 and thereafter at a variable interest rate ~~based on London Interbank Offered~~equal to 3-month CME Term Secured Overnight Financing Rate ~~or an appropriate alternative reference 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.

~~We use~~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 ~~rate swaps to manage~~rates on borrowings under the ~~risk~~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 ~~increases in interest rates~~December 31, 2023 or September 30, 2023. There is a facility fee associated with the ~~majority our floating-rate FHLB advances by converting~~Credit Facility, which also varies with RJF’s credit rating (the “Variable Rate Facility Fee”). Based upon RJF’s credit rating as of December 31, 2023, the ~~balances subject~~Variable Rate Facility Fee, which is applied to variable interest rates to a fixed interest rate. Refer to Note 2 of our 2022 Form 10-K and Note 5 of this Form 10-Q for information regarding these interest rate swaps, which have been designated and accounted for as cash flow hedges. Refer to Note 6 for more information regarding bank loans, net and available-for-sale securities pledged with the ~~FHLB as security for our FHLB borrowings.~~committed amount, was 0.125% per annum.

For further information on our other borrowing arrangements refer to Note 16 of our ~~2022~~2023 Form 10-K.


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

NOTE 1514 – 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 ~~2022~~2023 Form 10-K.

Effective tax rate

Our effective income tax rate of ~~22.6%~~21.0% for the ~~six~~three months ended ~~March~~December 31, 2023 was lower than the ~~25.4%~~23.7% effective tax rate for our fiscal year ~~2022.~~2023. The decrease in the effective income tax rate was primarily due to ~~nontaxable valuation gains associated with our company-owned life insurance policies that were~~a larger tax benefit recognized during the current quarter related to share-based compensation that vested during the period, compared to that for the fiscal year ~~2022 which had~~2023. Additionally, our effective income tax rate for the fiscal year 2023 reflected the adverse impact of nondeductible ~~losses.~~fines and penalties that did not recur during the current quarter.

Uncertain tax positions

Although management cannot predict with any degree of certainty the timing of ultimate resolution of matters under review by various taxing jurisdictions, it is reasonably possible that our uncertain tax position liability balance may decrease within the next 12 months by up to ~~$10~~$6 million due to ~~expirations~~expiration of statutes of limitations of federal and ~~the completion of~~state tax ~~examinations.~~returns.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

NOTE 1615 – 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~~December 31, 2023, we had ~~one~~no such open underwriting ~~commitment, which was subsequently settled in an open market transaction and did not result in a significant loss.~~commitments.

Lending commitments and other credit-related financial instruments

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

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


$ in millions	$ in millions	March 31, 2023		September 30, 2022		$ in millions	December 31, 2023	September 30, 2023
SBL and other consumer lines of credit	SBL and other consumer lines of credit	$	36,998	$	33,641
Commercial lines of credit	Commercial lines of credit	$	4,137	$	3,792
Unfunded lending commitments	Unfunded lending commitments	$	1,153	$	1,255
Standby letters of credit	Standby letters of credit	$	107	$	94

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


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

Because many of our lending commitments expire without being funded in whole or in part, the contractual amounts are not estimates of our actual future credit exposure or future liquidity requirements. The allowance for credit losses calculated under the ~~current expected credit losses (“CECL”)~~CECL model provides for potential losses related to the unfunded lending commitments. See Note 2 of our ~~2022~~2023 Form 10-K and Note 7 of this Form 10-Q for ~~further~~additional information onregarding this allowance for credit losses related to unfunded lending commitments.

RJ&A enters into margin lending arrangements which allow ~~customers~~clients to borrow against the value of qualifying securities. Margin loans are collateralized by the securities held in the ~~customer’s~~client’s account at RJ&A. Collateral levels and established credit terms are monitored daily and we require ~~customers~~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 ~~2022~~2023 Form 10-K and Note 8 of this Form 10-Q for ~~further discussion of~~additional information regarding our loans to financial advisors). These offers are contingent upon certain events occurring, including the individuals joining us and meeting certain other conditions outlined in their offer. We had no such unfunded commitments for loans to financial advisors who have met such conditions as of December 31, 2023.

Investment commitments

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

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

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~~December 31, 2023, RJAHI had committed approximately ~~$149~~$248 million to project partnerships that had not yet been sold to LIHTC funds. Because we expect to sell these project partnerships to LIHTC funds and the equity funding events arise over future periods, the contractual commitments are not expected to materially impact our future liquidity requirements. RJAHI may also make short-term loans or advances to project partnerships and LIHTC funds.

For information regarding our lease commitments see Note 1211 of this Form 10-Q and for information on the maturities of our lease liabilities see Note 14 of our ~~2022~~2023 Form 10-K.

Guarantees

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

Legal and regulatory matters contingencies

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

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


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

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

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

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

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

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~~December 31, 2023, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately ~~$100~~$35 million in excess of the aggregate accruals for such matters. Refer to Note 2 of our ~~2022~~2023 Form 10-K for a discussion of our criteria for recognizing liabilities for contingencies.

NOTE 1716 – 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 ~~2022~~2023 Form 10-K.

$ in millions, except share count March 31, 2023 September 30, 2022
6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”):
Shares outstanding 40,250 40,250
Carrying value $ 41 $ 41
Aggregate liquidation preference $ 40 $ 40
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

On April 3, 2023, we redeemed all 40,250 outstanding shares of our Series A Preferred Stock, which triggered the redemption of the related depositary shares (“Series A Depositary Shares”), each representing a 1/40th interest of a share of Series A Preferred Stock, for an aggregate redemption value of $40 million. The redemption of the Series A Preferred Stock will be reflected in our condensed consolidated financial statements in our fiscal third quarter of 2023.


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

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


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

Series B Preferred Stock

Series B Preferred Stock

Series B Preferred Stock

Three months ended December 31, 2022

Three months ended December 31, 2022

Three months ended December 31, 2022
Series A Preferred Stock
Series A Preferred Stock
Series A Preferred Stock	Series A Preferred Stock	$	1	$	16.88	$	2	$	33.76
Series B Preferred Stock	Series B Preferred Stock	1		$	15.94	2		$	31.88
Total preferred stock dividends declared		$	2			$	4
Dividends paid:
Series A Preferred Stock		$	1	$	16.88	$	2	$	33.76
Series B Preferred Stock		1		$	15.94	2		$	31.88
Total preferred stock dividends paid		$	2			$	4
Total

3736


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

Common equity

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


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


Balance end of period	208.7	215.0

We issue shares from time to time during the year to satisfy obligations under certain of our share-based compensation ~~programs.~~programs, some of which may be reissued out of treasury shares. See Note 2019 of this Form 10-Q and Note 23 of our ~~2022~~2023 Form 10-K for additional information on these programs. ~~We may also reissue treasury shares for such purposes.~~

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.~~compensation programs or acquisitions. In ~~December 2022,~~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 ~~law~~legal and regulatory constraints, general market conditions and the price and trading volumes of our common stock. During the three months ended ~~March~~December 31, 2023, we repurchased ~~3.75~~1.41 million shares of our common stock for ~~$350~~$150 million at an average price of ~~$93~~$106.51 per ~~share~~share. As of December 31, 2023, $1.39 billion remained available under the Board of Directors’ common stock repurchase authorization. During the six months ended March 31, 2023, we repurchased 5.04 million shares of our common stock for $488 million at an average price of $97 per share under the Board of Directors’ common stock repurchase authorization. As of March 31, 2023, approximately $1.1 billion remained available under such authorization.

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,
		2023		2022		2023		2022
Dividends per common share - declared	Dividends per common share - declared	$	0.42	$	0.34	$	0.84	$	0.68
Dividends per common share - declared
Dividends per common share - declared
Dividends per common share - paid	Dividends per common share - paid	$	0.42	$	0.34	$	0.76	$	0.60
Dividends per common share - paid
Dividends per common share - paid

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, 2023
2023 2022 2023 2022
Dividend payout ratio 21.8 % 22.4 % 19.9 % 18.8 %


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

~~RJF expects~~We expect to continue paying cash ~~dividends. However,~~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 ~~Raymond James Bank and TriState Capital Bank.~~our bank subsidiaries. See Note 2120 of this Form 10-Q for additional information on our regulatory capital requirements.

3837


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

AOCI as of beginning of period

AOCI as of beginning of period

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

Six months ended March 31, 2023
Three months ended December 31, 2022
Three months ended December 31, 2022
Three months ended December 31, 2022
AOCI as of beginning of period
AOCI as of beginning of period
AOCI as of beginning of period	AOCI as of beginning of period	$	153	$	(276)	$	(123)	$	(902)	$	43	$	(982)
OCI:	OCI:
OCI before reclassifications and taxes
OCI before reclassifications and taxes
OCI before reclassifications and taxes	OCI before reclassifications and taxes	(23)		71		48		211		(5)		254
Amounts reclassified from AOCI, before tax	Amounts reclassified from AOCI, before tax	—		—		—		—		(13)		(13)
Pre-tax net OCI	Pre-tax net OCI	(23)		71		48		211		(18)		241
Income tax effect	Income tax effect	6		(1)		5		(67)		5		(57)
OCI for the period, net of tax	OCI for the period, net of tax	(17)		70		53		144		(13)		184
AOCI as of end of period	AOCI as of end of period	$	136	$	(206)	$	(70)	$	(758)	$	30	$	(798)

Three months ended March 31, 2022
AOCI as of beginning of period		$	80	$	(89)	$	(9)	$	(60)	$	(18)	$	(87)
OCI:
OCI before reclassifications and taxes		(12)		(2)		(14)		(433)		35		(412)
Amounts reclassified from AOCI, before tax		—		—		—		—		4		4
Pre-tax net OCI		(12)		(2)		(14)		(433)		39		(408)
Income tax effect		3		—		3		113		(10)		106
OCI for the period, net of tax		(9)		(2)		(11)		(320)		29		(302)
AOCI as of end of period		$	71	$	(91)	$	(20)	$	(380)	$	11	$	(389)

Six months ended March 31, 2022
AOCI as of beginning of period		$	81	$	(90)	$	(9)	$	(5)	$	(27)	$	(41)
OCI:
OCI before reclassifications and taxes		(14)		(1)		(15)		(505)		43		(477)
Amounts reclassified from AOCI, before tax		—		—		—		—		8		8
Pre-tax net OCI		(14)		(1)		(15)		(505)		51		(469)
Income tax effect		4		—		4		130		(13)		121
OCI for the period, net of tax		(10)		(1)		(11)		(375)		38		(348)
AOCI as of end of period		$	71	$	(91)	$	(20)	$	(380)	$	11	$	(389)

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

Our net investment hedges and cash flow hedges relate to derivatives associated with our Bank segment. For further information about our significant accounting policies related to derivatives, see Note 2 of our ~~2022~~2023 Form 10-K. In addition, see Note 5 of this Form 10-Q for additional information on these derivatives.

3938


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

NOTE 1817 – 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 ~~2022~~2023 Form 10-K. See Note 26 of our ~~2022~~2023 Form 10-K and Note 2322 of this Form 10-Q for additional information on our ~~segment results.~~segments.


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

4039

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

Three months ended March 31, 2022
$ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total
Revenues:
Asset management and related administrative fees $ 1,245 $ 1 $ 226 $ — $ (8) $ 1,464
Brokerage revenues:
Securities commissions:
Mutual and other fund products 166 2 2 — (1) 169
Insurance and annuity products 110 — — — — 110
Equities, ETFs and fixed income products 105 38 — — — 143
Subtotal securities commissions 381 40 2 — (1) 422
Principal transactions (1)
16 126 — — — 142
Total brokerage revenues 397 166 2 — (1) 564
Account and service fees:
Mutual fund and annuity service fees 109 — — — — 109
RJBDP fees 69 — — — (49) 20
Client account and other fees 53 2 6 — (11) 50
Total account and service fees 231 2 6 — (60) 179
Investment banking:
Merger & acquisition and advisory — 139 — — — 139
Equity underwriting 9 52 — — — 61
Debt underwriting — 35 — — — 35
Total investment banking 9 226 — — — 235
Other:
Affordable housing investments business revenues — 15 — — — 15
All other (1)
6 1 — 8 (3) 12
Total other 6 16 — 8 (3) 27
Total non-interest revenues 1,888 411 234 8 (72) 2,469
Interest income (1)
37 5 — 199 1 242
Total revenues 1,925 416 234 207 (71) 2,711
Interest expense (3) (3) — (10) (22) (38)
Net revenues $ 1,922 $ 413 $ 234 $ 197 $ (93) $ 2,673


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


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

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

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

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.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

Six months ended March 31, 2022
$ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total
Revenues:
Asset management and related administrative fees $ 2,407 $ 2 $ 453 $ — $ (16) $ 2,846
Brokerage revenues:
Securities commissions:
Mutual and other fund products 337 4 4 — (1) 344
Insurance and annuity products 221 — — — — 221
Equities, ETFs and fixed income products 209 73 — — — 282
Subtotal securities commissions 767 77 4 — (1) 847
Principal transactions (1)
27 248 — — — 275
Total brokerage revenues 794 325 4 — (1) 1,122
Account and service fees:
Mutual fund and annuity service fees 223 — — — (1) 222
RJBDP fees 136 — — — (99) 37
Client account and other fees 102 4 12 — (21) 97
Total account and service fees 461 4 12 — (121) 356
Investment banking:
Merger & acquisition and advisory — 410 — — — 410
Equity underwriting 22 149 — — — 171
Debt underwriting — 79 — — — 79
Total investment banking 22 638 — — — 660
Other:
Affordable housing investments business revenues — 50 — — — 50
All other (1)
13 3 1 14 (3) 28
Total other 13 53 1 14 (3) 78
Total non-interest revenues 3,697 1,022 470 14 (141) 5,062
Interest income (1)
70 10 — 386 1 467
Total revenues 3,767 1,032 470 400 (140) 5,529
Interest expense (6) (5) — (20) (44) (75)
Net revenues $ 3,761 $ 1,027 $ 470 $ 380 $ (184) $ 5,454

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

At ~~March~~December 31, 2023 and September 30, ~~2022,~~2023, net receivables related to contracts with customers were ~~$540~~$481 million and ~~$511~~$519 million, respectively.

4340


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

NOTE 1918 – 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	$ in millions	2023		2022		2023		2022
$ in millions
$ in millions
Interest income:
Interest income:
Interest income:	Interest income:
Cash and cash equivalents	Cash and cash equivalents	$	75	$	3	$	130	$	6
Cash and cash equivalents
Cash and cash equivalents
Assets segregated for regulatory purposes and restricted cash
Assets segregated for regulatory purposes and restricted cash
Assets segregated for regulatory purposes and restricted cash	Assets segregated for regulatory purposes and restricted cash	55		7		105		11
Trading assets — debt securities	Trading assets — debt securities	13		4		27		9
Trading assets — debt securities
Trading assets — debt securities
Available-for-sale securities
Available-for-sale securities
Available-for-sale securities	Available-for-sale securities	54		25		107		47
Brokerage client receivables	Brokerage client receivables	41		21		82		42
Brokerage client receivables
Brokerage client receivables
Bank loans, net
Bank loans, net
Bank loans, net	Bank loans, net	657		171		1,256		335
All other	All other	20		11		35		17
All other
All other
Total interest income
Total interest income
Total interest income	Total interest income	$	915	$	242	$	1,742	$	467
Interest expense:	Interest expense:
Interest expense:
Interest expense:
Bank deposits
Bank deposits
Bank deposits	Bank deposits	$	206	$	5	378		$	11
Trading liabilities — debt securities	Trading liabilities — debt securities	7		1		17		2
Trading liabilities — debt securities
Trading liabilities — debt securities
Brokerage client payables
Brokerage client payables
Brokerage client payables	Brokerage client payables	23		—		40		1
Other borrowings	Other borrowings	9		4		18		9
Other borrowings
Other borrowings
Senior notes payable
Senior notes payable
Senior notes payable	Senior notes payable	23		23		46		46
All other	All other	16		5		26		6
All other
All other
Total interest expense
Total interest expense
Total interest expense	Total interest expense	$	284	$	38	$	525	$	75
Net interest income	Net interest income	$	631	$	204	$	1,217	$	392
Net interest income
Net interest income
Bank loan provision for credit losses
Bank loan provision for credit losses
Bank loan provision for credit losses	Bank loan provision for credit losses	(28)		(21)		(42)		(10)
Net interest income after bank loan provision for credit losses	Net interest income after bank loan provision for credit losses	$	603	$	183	$	1,175	$	382
Net interest income after bank loan provision for credit losses
Net interest income after bank loan provision for credit losses

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

NOTE 2019 – 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, ~~directors,~~Board of Directors, and independent contractor financial advisors. On February 23, 2023, our shareholders approved an amendment to the Plan to increase the number of shares available for grant by 18 million. Following this amendment, the Plan authorizes us to grant 96.4 million shares (including the shares available for grant under six predecessor plans). As of March 31, 2023, 21.0 million shares remained available for grant under the Plan. We may utilize treasury shares for grants under the ~~Plan;~~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 ~~2022~~2023 Form 10-K. Other information related to our share-based awards is presented in Note 23 of our ~~2022~~2023 Form 10-K.

Restricted stock units

During the three ~~and six~~ months ended ~~March~~December 31, 2023, we granted approximately ~~203 thousand and 2.1~~1.7 million RSUs ~~respectively,~~ with a weighted-average grant-date fair value of ~~$108.39 and $116.75, respectively,~~$106.68, compared with approximately ~~550 thousand and 2.9~~1.9 million RSUs granted during the three ~~and six~~ months ended ~~March~~December 31, 2022, ~~respectively,~~ with a weighted-average grant-date fair value of ~~$107.06 and $98.86, respectively.~~$117.66. For the three ~~and six~~ months ended ~~March~~December 31, 2023, total share-based compensation amortization related to RSUs was ~~$54~~$87 million, ~~and $130 million, respectively,~~ compared with ~~$41 million and $105~~$76 million for the three ~~and six~~ months ended ~~March~~December 31, ~~2022, respectively.~~2022.

As of ~~March~~December 31, 2023, there were ~~$430~~$425 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs, including those granted during the ~~six~~three months ended ~~March~~December 31, 2023. These costs are expected to be recognized over a weighted-average period of ~~2.8~~three years.

4441


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 ~~Holdings, Inc. (“TriState Capital”)~~ on June 1, 2022, in accordance with the terms of the acquisition. See Note 23 of our ~~2022~~2023 Form 10-K for further discussion of these awards. For the three ~~and six~~ months ended ~~March~~December 31, 2023 total share-based compensation amortization related to these RSAs was $2 million, ~~and $5~~compared with $3 million ~~respectively.~~for the three months ended December 31, 2022. As of ~~March~~December 31, 2023, there were ~~$16~~$10 million of total pre-tax compensation costs not yet recognized for these RSAs. These costs are expected to be recognized over a weighted-average period of ~~2.5~~two years.

NOTE 2120 – 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. ~~The FDIC’s capital rules, which are substantially similar to the Fed’s rules, apply to TriState Capital Bank.~~ 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~~December 31, 2023, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirement and each entity was categorized as “well-capitalized.”

For further discussion of regulatory capital requirements applicable to certain of our businesses and subsidiaries, see Note 24 of our ~~2022~~2023 Form 10-K.

4542


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							Actual								Requirement for capital adequacy purposes									To be well-capitalized under regulatory provisions
$ in millions	$ in millions	Amount		Ratio		Amount		Ratio		Amount		Ratio		$ in millions			Amount					Ratio					Amount					Ratio				Amount						Ratio
RJF as of March 31, 2023:
RJF as of December 31, 2023:														RJF as of December 31, 2023:
Tier 1 leverage	Tier 1 leverage	$	8,903	11.5	%	$	3,104	4.0	%	$	3,879	5.0	%	Tier 1 leverage			$	9,646		12.1			12.1	%				$	3,185		4.0		4.0		%			$	3,981		5.0			5.0	%
Tier 1 capital	Tier 1 capital	$	8,903	20.1	%	$	2,653	6.0	%	$	3,538	8.0	%	Tier 1 capital			$	9,646		21.6			21.6	%				$	2,676		6.0		6.0		%			$	3,568		8.0			8.0	%
CET1	CET1	$	8,788	19.9	%	$	1,990	4.5	%	$	2,874	6.5	%	CET1			$	9,570		21.5			21.5	%				$	2,007		4.5		4.5		%			$	2,899		6.5			6.5	%
Total capital	Total capital	$	9,474	21.4	%	$	3,538	8.0	%	$	4,422	10.0	%	Total capital			$	10,271		23.0			23.0	%				$	3,568		8.0		8.0		%			$	4,461		10.0			10.0	%

RJF as of September 30, 2022:
RJF as of September 30, 2023:
RJF as of September 30, 2023:
RJF as of September 30, 2023:
Tier 1 leverage
Tier 1 leverage
Tier 1 leverage	Tier 1 leverage	$	8,480	10.3	%	$	3,304	4.0	%	$	4,130	5.0	%		$	9,321			11.9		11.9		%			$	3,123			4.0		4.0	%			$	3,904			5.0			5.0	%
Tier 1 capital	Tier 1 capital	$	8,480	19.2	%	$	2,651	6.0	%	$	3,534	8.0	%	Tier 1 capital			$	9,321		21.4			21.4	%				$	2,613		6.0		6.0		%			$	3,484		8.0			8.0	%
CET1	CET1	$	8,380	19.0	%	$	1,988	4.5	%	$	2,871	6.5	%	CET1			$	9,245		21.2			21.2	%				$	1,960		4.5		4.5		%			$	2,831		6.5			6.5	%
Total capital	Total capital	$	9,031	20.4	%	$	3,534	8.0	%	$	4,418	10.0	%	Total capital			$	9,934		22.8			22.8	%				$	3,484		8.0		8.0		%			$	4,355		10.0			10.0	%

As of ~~March~~December 31, 2023, RJF’s regulatory capital increase compared with September 30, ~~2022~~2023 was driven by an increase in equity due to positive earnings, partially offset by ~~dividends~~share repurchases and ~~share repurchases.~~dividends. RJF’s Tier 1 capital and Total capital ratios increased compared with September 30, ~~2022~~2023 resulting from the increase in regulatory capital, partially offset by ~~a small~~an increase in risk-weighted assets. The increase in risk-weighted assets was primarily driven by ~~increases~~an increase in our bank loan portfolio ~~partially offset by a decrease in assets segregated for regulatory purposes.~~

and company-owned life insurance policies. RJF’s Tier 1 leverage ratio at ~~March~~December 31, 2023 increased compared ~~with~~to September 30, ~~2022~~2023 due to the increase in regulatory capital, ~~and lower~~which was partially offset by higher average assets, primarily driven by ~~a decrease~~an increase in ~~assets segregated for regulatory purposes.~~cash and our bank loan portfolio.

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

Actual Requirement for capital
adequacy purposes To be well-capitalized
under regulatory provisions
$ in millions Amount Ratio Amount Ratio Amount Ratio
Raymond James Bank as of March 31, 2023:
Tier 1 leverage $ 3,303 7.7 % $ 1,725 4.0 % $ 2,156 5.0 %
Tier 1 capital $ 3,303 13.1 % $ 1,512 6.0 % $ 2,016 8.0 %
CET1 $ 3,303 13.1 % $ 1,134 4.5 % $ 1,638 6.5 %
Total capital $ 3,619 14.4 % $ 2,016 8.0 % $ 2,520 10.0 %
Raymond James Bank as of September 30, 2022:
Tier 1 leverage $ 2,998 7.1 % $ 1,695 4.0 % $ 2,119 5.0 %
Tier 1 capital $ 2,998 12.1 % $ 1,485 6.0 % $ 1,979 8.0 %
CET1 $ 2,998 12.1 % $ 1,113 4.5 % $ 1,608 6.5 %
Total capital $ 3,308 13.4 % $ 1,979 8.0 % $ 2,474 10.0 %

Raymond James Bank’s regulatory capital increased compared with September 30, 2022, driven by positive earnings, partially offset by dividends paid to RJF. Raymond James Bank’s Tier 1 and Total capital ratios increased compared with September 30, 2022 resulting from the increase in regulatory capital, partially offset by an increase in risk-weighted assets due to growth in the bank loan portfolio and higher cash balances. Raymond James Bank’s Tier 1 leverage ratio at March 31, 2023 increased compared with September 30, 2022 due to the increase in regulatory capital, partially offset by an increase in average assets, primarily driven by an increase in the bank loan portfolio and higher cash balances.


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

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

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

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

4643


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

Actual Requirement for capital
adequacy purposes To be well-capitalized
under regulatory provisions
$ in millions Amount Ratio Amount Ratio Amount Ratio
TriState Capital Bank as of March 31, 2023:
Tier 1 leverage $ 1,159 7.2 % $ 646 4.0 % $ 808 5.0 %
Tier 1 capital $ 1,159 13.9 % $ 499 6.0 % $ 666 8.0 %
CET1 $ 1,159 13.9 % $ 374 4.5 % $ 541 6.5 %
Total capital $ 1,195 14.4 % $ 666 8.0 % $ 832 10.0 %
TriState Capital Bank as of September 30, 2022:
Tier 1 leverage $ 1,093 7.3 % $ 601 4.0 % $ 752 5.0 %
Tier 1 capital $ 1,093 14.1 % $ 463 6.0 % $ 618 8.0 %
CET1 $ 1,093 14.1 % $ 348 4.5 % $ 502 6.5 %
Total capital $ 1,122 14.5 % $ 618 8.0 % $ 772 10.0 %

TriState Capital Bank’s regulatory capital increased compared with September 30, 2022, driven by positive earnings. TriState Capital Bank’s Tier 1 and Total capital ratios decreased compared with September 30, 2022, due to an increase in risk-weighted assets, primarily resulting from increases in bank loans and available-for-sale securities, partially offset by the increase in regulatory capital. TriState Capital Bank’s Tier 1 leverage ratio at March 31, 2023 decreased slightly compared with September 30, 2022 as the increase in regulatory capital was offset by an increase in average assets, primarily driven by the increases in bank loans and available-for-sale securities.

Our ~~banking~~bank subsidiaries may pay dividends to RJF without prior approval of their respective regulators subject to certain restrictions including retained net income and targeted regulatory capital ratios. Dividends paid to RJF from our ~~banking~~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	$ in millions	March 31, 2023			September 30, 2022			$ in millions	December 31, 2023		September 30, 2023
Raymond James & Associates, Inc.:	Raymond James & Associates, Inc.:							Raymond James & Associates, Inc.:
(Alternative Method elected)	(Alternative Method elected)							(Alternative Method elected)
Net capital as a percent of aggregate debit items	Net capital as a percent of aggregate debit items	44.3		%	40.9		%	Net capital as a percent of aggregate debit items	38.5	%	43.3	%
Net capital	Net capital	$	1,086		$	1,152
Less: required net capital	Less: required net capital	(49)			(56)
Excess net capital	Excess net capital	$	1,037		$	1,096

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

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

NOTE 2221 – 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	in millions, except per share amounts	2023		2022		2023		2022
in millions, except per share amounts
in millions, except per share amounts
Income for basic earnings per common share:
Income for basic earnings per common share:
Income for basic earnings per common share:	Income for basic earnings per common share:
Net income available to common shareholders	Net income available to common shareholders	$	425	$	323	$	932	$	769
Net income available to common shareholders
Net income available to common shareholders
Less allocation of earnings and dividends to participating securities
Less allocation of earnings and dividends to participating securities
Less allocation of earnings and dividends to participating securities	Less allocation of earnings and dividends to participating securities	(2)		—		(3)		(1)
Net income available to common shareholders after participating securities	Net income available to common shareholders after participating securities	$	423	$	323	$	929	$	768
Net income available to common shareholders after participating securities
Net income available to common shareholders after participating securities
Income for diluted earnings per common share:
Income for diluted earnings per common share:
Income for diluted earnings per common share:	Income for diluted earnings per common share:
Net income available to common shareholders	Net income available to common shareholders	$	425	$	323	$	932	$	769
Net income available to common shareholders
Net income available to common shareholders
Less allocation of earnings and dividends to participating securities
Less allocation of earnings and dividends to participating securities
Less allocation of earnings and dividends to participating securities	Less allocation of earnings and dividends to participating securities	(2)		—		(3)		(1)
Net income available to common shareholders after participating securities	Net income available to common shareholders after participating securities	$	423	$	323	$	929	$	768
Net income available to common shareholders after participating securities
Net income available to common shareholders after participating securities
Common shares:
Common shares:
Common shares:	Common shares:
Average common shares in basic computation	Average common shares in basic computation	214.3		207.7		214.5		207.0
Average common shares in basic computation
Average common shares in basic computation
Dilutive effect of outstanding stock options and certain RSUs
Dilutive effect of outstanding stock options and certain RSUs
Dilutive effect of outstanding stock options and certain RSUs	Dilutive effect of outstanding stock options and certain RSUs	4.9		5.3		5.2		5.6
Average common and common equivalent shares used in diluted computation	Average common and common equivalent shares used in diluted computation	219.2		213.0		219.7		212.6
Average common and common equivalent shares used in diluted computation
Average common and common equivalent shares used in diluted computation
Earnings per common share:
Earnings per common share:
Earnings per common share:	Earnings per common share:
Basic	Basic	$	1.97	$	1.56	$	4.33	$	3.71
Basic
Basic
Diluted
Diluted
Diluted	Diluted	$	1.93	$	1.52	$	4.23	$	3.61
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive	Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive	1.6		—		1.3		0.5
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive

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, ~~as well as the RSAs granted as part of our acquisition of TriState Capital,~~ 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~~December 31, 2023 and 2022. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.


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

NOTE 2322 – 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 ~~2022~~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 2023 2022 2023 2022
Net revenues:
Private Client Group $ 2,144 $ 1,922 $ 4,207 $ 3,761
Capital Markets 302 413 597 1,027
Asset Management 216 234 423 470
Bank 540 197 1,048 380
Other 10 (18) 19 (33)
Intersegment eliminations (339) (75) (635) (151)
Total net revenues $ 2,873 $ 2,673 $ 5,659 $ 5,454
Pre-tax income/(loss):
Private Client Group $ 441 $ 213 $ 875 $ 408
Capital Markets (34) 87 (50) 288
Asset Management 82 103 162 210
Bank 91 83 227 185
Other (1)
(23) (53) (5) (100)
Total pre-tax income $ 557 $ 433 $ 1,209 $ 991

(1) The six months ended March 31, 2023 included the favorable impact of a $32 million insurance settlement received during the period related to a previously settled litigation matter. This item has been reflected as an offset to “Other” expenses on our Condensed Consolidated Statements of Income and Comprehensive income.


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

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

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


		Three months ended March 31,				Six months ended March 31,
		Three months ended December 31,
		Three months ended December 31,
		Three months ended December 31,
$ in millions	$ in millions	2023		2022		2023		2022
Net interest income/(expense):
$ in millions
$ in millions
Net interest income:
Net interest income:
Net interest income:
Private Client Group
Private Client Group
Private Client Group	Private Client Group	$	88	$	34	$	175	$	64
Capital Markets	Capital Markets	1		2		1		5
Capital Markets
Capital Markets
Asset Management
Asset Management
Asset Management	Asset Management	3		—		5		—
Bank	Bank	530		189		1,021		366
Bank
Bank
Other
Other
Other	Other	9		(21)		15		(43)
Net interest income	Net interest income	$	631	$	204	$	1,217	$	392
Net interest income
Net interest income

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


$ in millions	$ in millions	March 31, 2023		September 30, 2022		$ in millions	December 31, 2023	September 30, 2023
Total assets:	Total assets:
Private Client Group
Private Client Group
Private Client Group	Private Client Group	$	13,035	$	17,770
Capital Markets	Capital Markets	2,920		3,951
Asset Management	Asset Management	521		556
Bank	Bank	60,400		56,737
Other	Other	2,304		1,937
Total	Total	$	79,180	$	80,951

4945


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	$ in millions	March 31, 2023		September 30, 2022		$ in millions	December 31, 2023	September 30, 2023
Goodwill:	Goodwill:
Private Client Group
Private Client Group
Private Client Group	Private Client Group	$	565	$	550
Capital Markets	Capital Markets	275		274
Asset Management	Asset Management	69		69
Bank	Bank	529		529
Total	Total	$	1,438	$	1,422

We have operations in the U.S., Canada, and Europe. ~~Substantially all~~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~~income/(loss) classified by major geographic area in which they were earned.




		Three months ended March 31,				Six months ended March 31,
$ in millions	$ in millions	2023		2022		2023		2022
$ in millions
$ in millions
Net revenues:
Net revenues:
Net revenues:	Net revenues:
U.S.	U.S.	$	2,627	$	2,430	$	5,167	$	5,019
U.S.
U.S.
Canada
Canada
Canada	Canada	144		129		278		266
Europe	Europe	102		114		214		169
Europe
Europe
Total
Total
Total	Total	$	2,873	$	2,673	$	5,659	$	5,454
Pre-tax income/(loss):	Pre-tax income/(loss):
Pre-tax income/(loss):
Pre-tax income/(loss):
U.S.
U.S.
U.S.	U.S.	$	524	$	406	$	1,133	$	937
Canada	Canada	36		14		67		32
Canada
Canada
Europe
Europe
Europe	Europe	(3)		13		9		22
Total	Total	$	557	$	433	$	1,209	$	991
Total
Total

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

$ in millions

March 31, 2023

September 30, 2022

$ in millions

December 31, 2023

September 30, 2023

Total assets:

U.S.

72,960

74,428

U.S.

Canada

3,460

3,631

Europe

2,760

2,892

Total

79,180

80,951

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, 2023

September 30, 2022

$ in millions

December 31, 2023

September 30, 2023

Goodwill:

U.S.

1,250

U.S.

Canada

Europe

164

149

Total

1,438

1,422

5046

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES						Index

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


INDEX
			PAGE
Factors affecting “forward-looking statements”			5248
Introduction			5248
Executive overview			5248
Reconciliation of non-GAAP financial measures to GAAP financial measures			5550
Net interest analysis			5852
Results of operations
Private Client Group			6355
Capital Markets			6859
Asset Management			7060
Bank			7363
Other			7564
Statement of financial condition analysis			7664
Liquidity and capital resources			7665
Regulatory			8371
Critical accounting estimates			8371
~~Recent accounting developments~~Accounting standards update			8472
Risk management			8473

5147


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

FACTORS AFFECTING “FORWARD-LOOKING STATEMENTS”

Certain statements made in this Quarterly Report on Form 10-Q may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates and inflation), demand for and pricing of our products (including cash sweep and deposit offerings), acquisitions, ~~divestitures,~~ anticipated results of litigation, regulatory developments, and general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” ~~“plans,”~~ “estimates,” “projects,” and future or conditional verbs such as ~~“will,~~“may,” ~~“may,~~“will,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

INTRODUCTION

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand the results of our operations and financial condition. This MD&A is provided as a supplement to, and should be read in conjunction with, our condensed consolidated financial statements and accompanying notes to condensed consolidated financial statements. Where “NM” is used in various percentage change computations, the computed percentage change has been determined to be not meaningful.

We operate as a financial holding company and bank holding company. Results in the businesses in which we operate are highly correlated to general economic conditions and, more specifically, to the direction of the U.S. equity and fixed income markets, changes in interest rates, market volatility, corporate and mortgage lending markets and commercial and residential credit trends. Overall market conditions, economic, political and regulatory trends, and industry competition are among the factors which could affect us and which are unpredictable and beyond our control. These factors affect the financial decisions made by market participants, including investors, ~~depositors,~~ borrowers, and competitors, impacting their level of participation in the financial markets. These factors also impact the level of investment banking activity and asset valuations, which ultimately affect our business results.

EXECUTIVE OVERVIEW

Quarter ended ~~March~~December 31, 2023 compared with the quarter ended ~~March~~December 31, 2022

For our fiscal ~~second~~first quarter of ~~2023,~~2024, we generated net revenues of ~~$2.87~~$3.01 billion, an increase of 7%8% compared with the prior-year quarter, while pre-tax income of ~~$557~~$630 million ~~increased 29%~~decreased $22 million, or 3%. Our net income available to common shareholders of ~~$425~~$497 million ~~increased 32%~~decreased 2%, and our earnings per diluted share were ~~$1.93,~~$2.32, reflecting ~~a 27% increase.~~an increase of 1%. Our annualized return on common equity (“ROCE”) for the quarter was ~~17.3%~~19.1%, compared with ~~15.0%~~21.3% for the prior-year quarter, and our annualized return on tangible common equity (“ROTCE”) was ~~21.3%~~23.0%(1), compared with ~~16.8%~~26.2%(1) for the prior-year quarter. Excluding ~~$28~~the impact of $23 million of expenses related to acquisitions completed in prior years, such as compensation related to retention awards and amortization of identifiable intangible assets, our adjusted net income available to common shareholders was ~~$446~~$514 million(1) for the three months ended ~~March~~December 31, 2023, ~~29% higher than~~an increase of $9 million, or 2%, compared with adjusted net income available to common shareholders for the prior-year quarter ~~and our~~which, in addition to acquisition-related expenses, excluded the impact of a $32 million favorable insurance settlement received in the prior-year quarter related to a previously-settled legal matter, which did not recur. Our adjusted earnings per diluted share were ~~$2.03~~$2.40(1), ~~25% higher than adjusted earnings per diluted share for~~an increase of 5% compared with the prior-year quarter. Adjusted annualized ROCE for the quarter was ~~18.2%~~19.7%(1) and adjusted annualized ROTCE was ~~22.3%~~23.8%(1), compared with adjusted annualized ROCE of ~~16.1%~~21.2%(1) and adjusted annualized ROTCE of ~~18.0%~~26.1%(1) for the prior-year quarter.

(1)

~~(1)~~ ROTCE, adjusted net income available to common shareholders, adjusted earnings per diluted share, adjusted annualized ROCE, and adjusted annualized ROTCE are non-GAAP financial measures. Please see the “Reconciliation of non-GAAP financial measures to GAAP financial measures” in this MD&A for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, and for other important disclosures.

5248


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

~~Quarterly~~The increase in net revenues ~~increased~~ compared with the prior-year quarter was primarily due to ~~the benefit of~~ higher short-term interest rates on net interest income and RJBDP fees from third-party banks, as well as incremental revenues from our prior-year acquisitions of TriState Capital in June 2022, SumRidge Partners, LLC (“SumRidge Partners”) in July 2022 and, to a lesser extent Charles Stanley Group PLC (“Charles Stanley”) in late January 2022. These increases were offset by lower asset management and related administrative fees, ~~primarily as a~~largely the result of ~~lower~~higher PCG client assets in fee-based accounts at the beginning of the current quarter compared with the prior-year quarter. Investment banking revenues increased compared with the prior-year quarter ~~as well as lower~~but continued to be impacted by market uncertainty, which negatively impacted industry-wide investment banking activity. Brokerage revenues also increased compared with the prior-year quarter largely due to an increase in client activity in the PCG segment. Offsetting these increases was a ~~challenging market environment during~~decrease in combined net interest income and RJBDP fees of $25 million, or 3%, as the ~~current quarter. Brokerage revenues also~~benefits of higher short-term interest rates on net interest income and RJBDP fees from third-party banks and of higher average interest-earning assets were more than offset by a significant increase in interest expense, primarily resulting from a shift in the mix of deposit balances at our Bank segment, as lower-cost RJBDP balances declined compared with the prior-year quarter, ~~primarily due to lower asset-based trailing revenues~~while balances in the higher-cost ESP, which was launched to PCG ~~segment, as well as decreased activity from depository~~ clients in ~~the Capital Markets segment.~~March 2023, continued to increase.

Compensation, commissions and benefits expense ~~decreased 2%~~increased 11%, primarily ~~attributable~~due to ~~the decrease~~an increase in compensable revenues, ~~compared with the prior-year quarter, partially offset by incremental compensation expenses arising from the aforementioned acquisitions,~~as well as an increase in compensation costs both to support our growth and annual ~~salary increases.~~cost increases, including salaries. Our compensation ratio, or the ratio of compensation, commissions and benefits expense to net revenues, was ~~63.3%~~63.8%, compared with ~~69.3%~~62.3% for the prior-year quarter. Excluding acquisition-related compensation expenses, our adjusted compensation ratio was ~~62.8%~~63.4%(1), compared with ~~68.8%~~61.7%(1) for the prior-year quarter. The ~~decline~~increase in the compensation ratio primarily resulted from changes in our revenue mix due to ~~higher~~increases in compensable revenues compared with the prior-year quarter, as well as a decrease in combined net interest income and RJBDP fees from third-party banks, which have little associated direct compensation.

Non-compensation expenses increased ~~28%~~$64 million, or 16%, largely due to ~~incremental expenses arising from~~ the ~~aforementioned acquisitions, higher legal and regulatory costs, including~~favorable impact of a $32 million insurance settlement received in the prior-year quarter related to a previously settled litigation matter, the impact of ~~an unfavorable arbitration award during the current quarter,~~a FDIC special assessment of $9 million, as well as higher communications and information processing expenses, ~~reflecting~~primarily resulting from continued investments in technology ~~investments and higher business development expenses compared~~ to ~~the relatively low prior-year level. The bank loan provision for credit losses was $28 million for the current-year quarter compared with a provision of $21 million for the prior-year quarter.~~support our growth.

Our effective income tax rate was ~~23.3%~~21.0% for our fiscal ~~second~~first quarter of ~~2023,~~2024, a slight decrease compared with the ~~25.4%~~21.9% effective income tax rate for the prior-year quarter, primarily due to the favorable impact of nontaxable valuation gains associated with our company-owned life insurance policies in the current quarter compared with nondeductible valuation losses in the prior-year quarter.

As of ~~March~~December 31, 2023, our Tier 1 leverage ratio of ~~11.5%~~12.1% and Total capital ratio of ~~21.4%~~23.0% were both ~~more~~significantly higher than ~~double~~ the regulatory requirement to be considered well-capitalized. We also continue to have substantial liquidity with ~~$1.8~~$2.1 billion(2) of cash at the parent as of March 31, 2023, which includes cash the parent loaned to RJ&A to invest on its behalf. Despite a challenging operating environment, we renewed our revolving credit facility in April 2023, expanding our borrowing capacity under the facility from $500 million to $750 million. In addition, we increased our FHLB borrowings in the Bank segment by $500 million as of March 31, 2023 compared to December 31, 2022, and subsequently repaid $200 million of these borrowings in April 2023, leaving us with more than $9 billion of FHLB borrowing capacity in the Bank segment. In addition, although recent turmoil in the banking industry has heightened awareness around bank deposits in excess of FDIC insurance limits, as of March 31, 2023, 88% of our Bank segment deposits were FDIC-insured, including nearly 95% at Raymond James Bank.2023. We believe our ~~funding~~capital and ~~capital~~funding position provides us the opportunity to manage our balance sheet prudently ~~in the current operating environment~~ and to continue ~~being~~to be opportunistic and invest in growth. During the three months ended ~~March~~December 31, 2023, we repurchased ~~3.75~~1.41 million shares of our common stock for ~~$350~~$150 million at an average price of ~~$93~~$106.51 per share under the Board of Directors’ common stock repurchase authorization. After the effect of those repurchases, ~~$1.1~~$1.39 billion remained under such authorization. We currently expect to continue to repurchase our common stock in our fiscal ~~2023~~second quarter of 2024 to offset the remaining impact of shares issued with the acquisition of TriState Capital in fiscal 2022 ~~as well as~~and to offset dilution from share-based compensation; however, we will continue to monitor market conditions and other capital needs as we consider these repurchases.

~~(1) Adjusted compensation ratio is a non-GAAP financial measure. Please see the “Reconciliation of non-GAAP financial measures~~As we look ahead to ~~GAAP financial measures” in this MD&A for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, and for other important disclosures.~~

~~(2) For additional information, please see the “Liquidity and capital resources - Sources of liquidity” section in this MD&A.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

~~We remain well-positioned entering~~ our fiscal ~~third~~second quarter of ~~2023.~~2024, we believe we are well-positioned for long-term growth, with our strong capital position and total client assets under administration of $1.37 trillion. We expect our fiscal ~~third~~second quarter of 2024 results to be favorably impacted by higher asset management and related administrative fees, which will benefit from the 5%9% sequential increase in both PCG fee-based assets and financial assets under management as of ~~March~~December 31, 2023. In addition, our financial advisor recruiting ~~pipelines remain solid across our affiliation options and we continue~~activity remains robust, including a strong recruiting pipeline. However, absent a change to ~~see solid retention of existing advisors. However,~~interest rates from December 31, 2023 levels, we expect our combined net interest income and RJBDP fees from third-party banks to further decline an estimated 5% in total in our fiscal ~~third~~second quarter compared with our fiscal first quarter of 2024 due to ~~a decrease in average balances swept to third-party banks and a contraction in the Bank segment’s~~lower net interest ~~margin given the higher level of cash balances we plan to maintain~~income in our Bank segment ~~due to market conditions, as well as~~reflecting the impact from higher-cost diversified funding sources, including our ~~Enhanced Savings Program,~~ESP which was launched to PCG clients in March 2023. WeWhile we have a healthy investment banking pipeline and we believe the environment for M&A and advisory activity is improving, the pace and timing of transactions are heavily influenced by market conditions, and we expect investment banking activity to continue to ~~face macroeconomic uncertainties which may continue~~be negatively impacted by market uncertainty during our fiscal second quarter of 2024 but start to ~~have a negative impact on equity and fixed income markets. As a result, we may~~improve later in our fiscal 2024. We expect to continue to experience headwinds for brokerage revenues ~~and investment banking revenues, despite~~due to flat or declining cash balances at many of our ~~healthy investment banking pipelines.~~depository institution clients. In addition, although we have proactively taken steps to manage our credit risk in our loan portfolio, future economic deterioration or changes in our macroeconomic outlook could result in increased bank loan provisions for credit losses in future periods.

~~Six months ended March 31, 2023 compared with the six months ended March 31, 2022~~

For the six months ended March 31, 2023, we generated net revenues of $5.66 billion, an increase of 4% compared with the prior-year period, and pre-tax income of $1.21 billion, an increase of 22%. Our net income available to common shareholders of $932 million was 21% higher than the prior-year period and our earnings per diluted share were $4.23, reflecting a 17% increase. Our annualized ROCE was 19.3%, compared with 18.1% for the prior-year period, and our annualized ROTCE was 23.8%~~(1), compared with 20.2%(1)~~ ~~for the prior-year period.~~

The six months ended March 31, 2023 included $57 million of expenses related to acquisitions completed in prior years, such as compensation related to retention awards and amortization of identifiable intangible assets, as well as the favorable impact of a $32 million insurance settlement received during our fiscal first quarter related to a previously-settled litigation matter. Excluding these items, our adjusted net income available to common shareholders was $951 million~~(1), an increase of 18% compared with the prior-year period, and our adjusted earnings per diluted share were $4.31(1), an increase of 13%.Adjusted annualized ROCE was 19.7%(1), compared with 19.0%(1)~~ ~~in the prior-year period, and adjusted annualized ROTCEwas 24.2%(1), compared with 21.2%(1)~~ ~~in the prior-year period.~~

The increase in net revenues compared with the prior-year period was primarily driven by the benefit of significantly higher short-term interest rates in the current-year period on both net interest income and RJBDP fees from third-party banks, as well as incremental revenues arising from our prior-year acquisitions of Charles Stanley, TriState Capital and SumRidge. These increases were offset by lower asset management and related administrative fees, primarily attributable to lower PCG client assets in fee-based accounts, and declines in investment banking and brokerage revenues primarily due to a more challenging market environment during the current-year period.

Compensation, commissions and benefits expense decreased 5%, primarily attributable to the decrease in compensable revenues compared with the prior-year period, partially offset by incremental expenses arising from our prior-year acquisitions of Charles Stanley, TriState Capital, and SumRidge, as well as an increase in compensation costs to support our growth and annual salary increases. Our compensation ratio was 62.8%, compared with 68.5% for the prior-year period. Excluding acquisition-related compensation expenses, our adjusted compensation ratio was 62.2%~~(1), compared with an adjusted compensation ratio of 68.0%(1)~~ ~~for the prior-year period.~~

Non-compensation expenses increased 23%, primarily due to incremental expenses arising from our acquisitions of Charles Stanley, TriState Capital, and SumRidge, as well as increases in business development expenses, the bank loan provision for credit losses, and communications and information processing expenses. The current-year period also included the aforementioned increase in legal and regulatory costs. Partially offsetting these increases was the aforementioned favorable insurance settlement received.

~~Our effective income tax rate was 22.6% for the six months ended March 31, 2023, a slight increase from 22.4% for the prior-year period.~~

(1)

~~(1) ROTCE, adjusted net income available to common shareholders, adjusted earnings per diluted share, adjusted annualized ROCE, adjusted annualized ROTCE, and adjusted~~Adjusted compensation ratio ~~are~~is a non-GAAP financial ~~measures.~~measure. Please see the “Reconciliation of non-GAAP financial measures to GAAP financial measures” in this MD&A for a reconciliation of ~~these~~this non-GAAP financial ~~measures~~measure to the most directly comparable GAAP ~~measures,~~measure, and for other important disclosures.

(2)For additional information, please see the “Liquidity and capital resources - Sources of liquidity” section in this MD&A.

5449


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES ~~Management’s Discussion and Analysis~~ In December 2022, the Board of Directors increased the quarterly cash dividend on common shares to $0.42 per share and authorized common stock repurchases of up to $1.5 billion. During the six months ended March 31, 2023, we repurchased 5.04 million shares of our common stock for $488 million at an average price of $97 per share under the Board of Directors’ common stock repurchase authorization. Management’s Discussion and Analysis						Index

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non-GAAP financial measures have been separately identified in this document. We believe certain of these non-GAAP financial measures provide useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a comparison of current- and prior-period results. Beginning with our fiscal third quarter of 2022, certain of our non-GAAP financial measures have been adjusted for additional expenses directly related to our acquisitions that we believe are not indicative of our core operating results, such as those related to amortization of identifiable intangible assets arising from acquisitions and acquisition-related retention. Prior periods have been conformed to the current period presentation. We believe that ~~return on tangible common equity~~ROTCE is meaningful to investors as it facilitates comparisons of our results to the results of other companies. In the following tables, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.


		Three months ended December 31,
		Three months ended December 31,
		Three months ended December 31,
$ in millions, except per share amounts
$ in millions, except per share amounts
$ in millions, except per share amounts
Net income available to common shareholders
Net income available to common shareholders
Net income available to common shareholders
Non-GAAP adjustments:
Non-GAAP adjustments:
Non-GAAP adjustments:
Expenses related to acquisitions:
Expenses related to acquisitions:
Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention

Compensation, commissions and benefits — Acquisition-related retention

Compensation, commissions and benefits — Acquisition-related retention

		Three months ended				Six months ended
$ in millions		March 31, 2023		March 31, 2022		March 31, 2023		March 31, 2022
Net income available to common shareholders		$	425	$	323	$	932	$	769
Non-GAAP adjustments:
Expenses directly related to acquisitions included in the following financial statement line items:

Compensation, commissions and benefits — Acquisition-related retention		17		14		35		25
Professional fees

Professional fees

Professional fees	Professional fees	—		5		—		7

Other — Amortization of identifiable intangible assets	Other — Amortization of identifiable intangible assets	11		6		22		14

All other acquisition-related expenses		—		6		—		6
Total “Other” expense		11		12		22		20
Total expenses related to acquisitions		28		31		57		52
Other — Insurance settlement received		—		—		(32)		—
Pre-tax impact of non-GAAP adjustments		28		31		25		52
Tax effect of non-GAAP adjustments		(7)		(8)		(6)		(13)
Total non-GAAP adjustments, net of tax		21		23		19		39
Adjusted net income available to common shareholders		$	446	$	346	$	951	$	808

Other — Amortization of identifiable intangible assets

Other — Amortization of identifiable intangible assets

Total expenses related to acquisitions

Total expenses related to acquisitions

Total expenses related to acquisitions
Other — Insurance settlement received
Other — Insurance settlement received
Other — Insurance settlement received
Pre-tax impact of non-GAAP adjustments
Pre-tax impact of non-GAAP adjustments
Pre-tax impact of non-GAAP adjustments
Tax effect of non-GAAP adjustments
Tax effect of non-GAAP adjustments
Tax effect of non-GAAP adjustments
Total non-GAAP adjustments, net of tax
Total non-GAAP adjustments, net of tax
Total non-GAAP adjustments, net of tax
Adjusted net income available to common shareholders
Adjusted net income available to common shareholders
Adjusted net income available to common shareholders

Pre-tax income

Pre-tax income

Pre-tax income
Pre-tax impact of non-GAAP adjustments (as detailed above)
Pre-tax impact of non-GAAP adjustments (as detailed above)
Pre-tax impact of non-GAAP adjustments (as detailed above)
Adjusted pre-tax income
Adjusted pre-tax income
Adjusted pre-tax income

Compensation, commissions and benefits expense

Compensation, commissions and benefits expense

Compensation, commissions and benefits expense	Compensation, commissions and benefits expense	$	1,820	$	1,852	$	3,556	$	3,736
Less: Acquisition-related retention (as detailed above)	Less: Acquisition-related retention (as detailed above)	17		14		35		25
Less: Acquisition-related retention (as detailed above)
Less: Acquisition-related retention (as detailed above)
Adjusted “Compensation, commissions and benefits” expense	Adjusted “Compensation, commissions and benefits” expense	$	1,803	$	1,838	$	3,521	$	3,711
Adjusted “Compensation, commissions and benefits” expense
Adjusted “Compensation, commissions and benefits” expense

Three months ended Six months ended
March 31,
2023 March 31,
2022 March 31,
2023 March 31,
2022
Total compensation ratio 63.3 % 69.3 % 62.8 % 68.5 %
Less the impact of non-GAAP adjustments on compensation ratio:
Acquisition-related retention 0.5 % 0.5 % 0.6 % 0.5 %
Adjusted total compensation ratio 62.8 % 68.8 % 62.2 % 68.0 %

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Three months ended Six months ended
Earnings per common share March 31,
2023 March 31,
2022 March 31,
2023 March 31,
2022
Diluted earnings per common share $ 1.93 $ 1.52 $ 4.23 $ 3.61
Impact of non-GAAP adjustments on diluted earnings per common share:
Expenses directly related to acquisitions included in the following financial statement line items:
Compensation, commissions and benefits — Acquisition-related retention
0.08 0.06 0.16 0.12
Professional fees — 0.02 — 0.03
Other — Amortization of identifiable intangible assets
0.05 0.03 0.10 0.07
All other acquisition-related expenses — 0.03 — 0.03
Total “Other” expense 0.05 0.06 0.10 0.10
Total expenses related to acquisitions 0.13 0.14 0.26 0.25
Other — Insurance settlement received
— — (0.15) —
Tax effect of non-GAAP adjustments (0.03) (0.04) (0.03) (0.06)
Total non-GAAP adjustments, net of tax 0.10 0.10 0.08 0.19
Adjusted diluted earnings per common share $ 2.03 $ 1.62 $ 4.31 $ 3.80

Return on common equity Three months ended Six months ended
$ in millions March 31,
2023 March 31,
2022 March 31,
2023 March 31,
2022
Average common equity $ 9,806 $ 8,601 $ 9,650 $ 8,482
Impact of non-GAAP adjustments on average common equity:
Expenses directly related to acquisitions included in the following financial statement line items:
Compensation, commissions and benefits — Acquisition-related retention
9 7 18 12
Professional fees — 3 — 3
Other — Amortization of identifiable intangible assets
6 3 11 7
All other acquisition-related expenses — 3 — 2
Total “Other” expense 6 6 11 9
Total expenses related to acquisitions 15 16 29 24
Other — Insurance settlement received
— — (21) —
Tax effect of non-GAAP adjustments (4) (4) (2) (6)
Total non-GAAP adjustments, net of tax 11 12 6 18
Adjusted average common equity $ 9,817 $ 8,613 $ 9,656 $ 8,500























Total compensation ratio	63.8	%	62.3	%
Less the impact of non-GAAP adjustments on compensation ratio:
Acquisition-related retention	0.4	%	0.6	%


Adjusted total compensation ratio	63.4	%	61.7	%























Diluted earnings per common share	$	2.32	$	2.30
Impact of non-GAAP adjustments on diluted earnings per common share:
Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention	0.05		0.08



Professional fees	0.01		—


Other — Amortization of identifiable intangible assets	0.05		0.06



Total expenses related to acquisitions	0.11		0.14
Other — Insurance settlement received	—		(0.15)
Tax effect of non-GAAP adjustments	(0.03)		—
Total non-GAAP adjustments, net of tax	0.08		(0.01)
Adjusted diluted earnings per common share	$	2.40	$	2.29


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Three months ended Six months ended
$ in millions March 31,
2023 March 31,
2022 March 31,
2023 March 31,
2022
Average common equity $ 9,806 $ 8,601 $ 9,650 $ 8,482
Less:
Average goodwill and identifiable intangible assets, net 1,936 992 1,934 955
Average deferred tax liabilities related to goodwill and identifiable intangible assets, net (129) (77) (128) (72)
Average tangible common equity $ 7,999 $ 7,686 $ 7,844 $ 7,599
Impact of non-GAAP adjustments on average tangible common equity:
Expenses directly related to acquisitions included in the following financial statement line items:
Compensation, commissions and benefits — Acquisition-related retention
9 7 18 12
Professional fees — 3 — 3
Other — Amortization of identifiable intangible assets
6 3 11 7
All other acquisition-related expenses — 3 — 2
Total “Other” expense 6 6 11 9
Total expenses related to acquisitions 15 16 29 24
Other — Insurance settlement received
— — (21) —
Tax effect of non-GAAP adjustments (4) (4) (2) (6)
Total non-GAAP adjustments, net of tax 11 12 6 18
Adjusted average tangible common equity $ 8,010 $ 7,698 $ 7,850 $ 7,617
Return on common equity 17.3 % 15.0 % 19.3 % 18.1 %
Adjusted return on common equity 18.2 % 16.1 % 19.7 % 19.0 %
Return on tangible common equity 21.3 % 16.8 % 23.8 % 20.2 %
Adjusted return on tangible common equity 22.3 % 18.0 % 24.2 % 21.2 %




Return on common equity	Three months ended December 31,
$ in millions	2023		2022
Average common equity	$	10,423	$	9,537
Impact of non-GAAP adjustments on average common equity:
Expenses related to acquisitions:

Compensation, commissions and benefits — Acquisition-related retention	6		9



Professional fees	—		—


Other — Amortization of identifiable intangible assets	6		5



Total expenses related to acquisitions	12		14
Other — Insurance settlement received	—		(16)
Tax effect of non-GAAP adjustments	(3)		1
Total non-GAAP adjustments, net of tax	9		(1)
Adjusted average common equity	$	10,432	$	9,536




Average common equity	$	10,423		$	9,537
Less:
Average goodwill and identifiable intangible assets, net	1,908			1,935
Average deferred tax liabilities related to goodwill and identifiable intangible assets, net	(132)			(128)
Average tangible common equity	$	8,647		$	7,730
Impact of non-GAAP adjustments on average tangible common equity:
Expenses related to acquisitions:


Compensation, commissions and benefits — Acquisition-related retention	6			9



Professional fees	—			—


Other — Amortization of identifiable intangible assets	6			5



Total expenses related to acquisitions	12			14
Other — Insurance settlement received	—			(16)
Tax effect of non-GAAP adjustments	(3)			1
Total non-GAAP adjustments, net of tax	9			(1)
Adjusted average tangible common equity	$	8,656		$	7,729

Return on common equity	19.1		%	21.3		%
Adjusted return on common equity	19.7		%	21.2		%
Return on tangible common equity	23.0		%	26.2		%
Adjusted return on tangible common equity	23.8		%	26.1		%

Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period. Adjusted total compensation ratio is computed by dividing adjusted compensation, commissions and benefits expense by net revenues for each respective period.

Tangible common equity is computed by subtracting goodwill and identifiable intangible assets, net, along with the associated deferred tax liabilities, from total common equity attributable to RJF. Average common equity is computed by adding the total common equity attributable to RJF as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two. Average common equity for the year-to-date period is computed by adding the total common equity attributable to RJF as of each quarter-end date during the indicated year-to-date period to the beginning of year total, and dividing by three, or in the case of average tangible common equity, computed by adding tangible common equity as of each quarter-end date during the indicated year-to-date period to the beginning of year total, and dividing by three. Adjusted average common equity is computed by adjusting for the impact on average common equity of the non-GAAP adjustments, as applicable for each respective period. Adjusted average tangible common equity is computed by adjusting for the impact on average tangible common equity of the non-GAAP adjustments, as applicable for each respective period.

ROCE is computed by dividing annualized net income available to common shareholders for the period indicated by average common equity for each respective period or, in the case of ROTCE, computed by dividing annualized net income available to common shareholders by average tangible common equity for each respective period. Adjusted ROCE is computed by dividing annualized adjusted net income available to common shareholders by adjusted average common equity for each respective period, or in the case of adjusted ROTCE, computed by dividing annualized adjusted net income available to common shareholders by adjusted average tangible common equity for each respective period.

5751


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

NET INTEREST ANALYSIS

Largely in response to inflationary pressures since the beginning of fiscal year 2022, the Fed rapidly and consistently increased its benchmark short-term interest rates commencing in March 2022 and continuing ~~into~~throughout our fiscal ~~second quarter~~2023. Since the beginning of ~~2023. Over this period,~~our fiscal 2023, the Fed has increased the Fed funds target rate from a ~~March 31,~~September 30, 2022 range of ~~0.25%~~2.25% to ~~0.50%~~2.50% to a ~~March~~December 31, 2023 range of ~~4.75%~~5.25% to 5%5.50%. ~~The Fed further increased~~While the Fed ~~funds target~~has left its benchmark rate ~~by 25 basis points~~unchanged in ~~May 2023 and~~its most recent meetings, it has indicated that it intends to closely monitor ~~short-term interest~~market conditions to determine whether it will continue to hold rates ~~throughout the remainder of~~steady or initiate rate cuts in our fiscal ~~2023.~~2024. The following table details the Fed’s ~~recent~~ short-term interest rate ~~activity.~~activity since the beginning of our fiscal 2023.

~~Fed Funds Target Rate Schedule~~

RJF ~~Fiscal~~fiscal quarter ended

Effective date of interest rate action

~~Increase/(decrease)~~Increase in interest rates (in basis points)

Fed funds target rate

~~March 31 2020~~

~~March 16, 2020~~

~~(100)~~

~~0.00% - 0.25%~~

~~March 31, 2022~~

~~March 17, 2022~~

~~0.25% - 0.50%~~

~~June 30, 2022~~

~~May 5, 2022~~

~~0.75% - 1.00%~~

~~June 30, 2022~~

~~June 16, 2022~~

~~1.50% - 1.75%~~

~~September 30, 2022~~

~~July 28, 2022~~

~~2.25% - 2.50%~~

~~September 30, 2022~~

~~September 22, 2022~~

~~3.00% - 3.25%~~

December 31, 2022

November 3, 2022

3.75% - 4.00%

December 31, 2022

December 15, 2022

4.25% - 4.50%

March 31, 2023

February 2, 2023

4.50% - 4.75%

March 31, 2023

March 23, 2023

4.75% - 5.00%

~~Rate changes subsequent to March 31, 2023~~

June 30, 2023

May 4, 2023

5.00% - 5.25%

September 30, 2023

July 27, 2023

5.25% - 5.50%

Increases in short-term interest rates have positively impacted our net interest income and the fee income we earn from third-party banks on client cash balances swept to such banks as part of the RJBDP (included in account and service fees), which is also sensitive to changes in interest rates.

Given the relationship between our interest-sensitive assets and liabilities (primarily held in our PCG, Bank, and Other segments) and the nature of fees we earn from third-party banks on client cash balances swept to such banks as part of the RJBDP (included in account and service fees), ~~which~~our financial results are ~~also~~ sensitive to changes in interest ~~rates, increases~~rates. Increases in short-term interest rates generally result in an increase in our net earnings, although the magnitude of the impact to our net interest margin depends on the yields on interest-earning assets relative to the cost of interest-bearing liabilities, including deposit rates paid to clients on their cash balances. ~~Changes to the regulatory landscape governing the fees the firm earns on~~Our domestic client ~~assets, including~~ cash sweep balances ~~could negatively impact~~continue to represent a relatively low-cost funding source, while other deposit products utilized as part of our ~~earnings.~~strategy to diversify our funding sources, such as our ESP introduced to our clients in fiscal 2023, have a higher relative cost than other alternatives.

As a result of our diverse funding sources, strong loan growth and high concentration of floating-rate assets, we benefited from the increases in short-term interest rates during the three and six months ended March 31, 2023. However, despite the recent increases in short-term interest rates, we expect our combinedCombined net interest income and RJBDP fees from third-party banks ~~to decline~~of $698 million for three months ended December 31, 2023 was $25 million, or 3%, lower compared with the prior-year quarter. The benefits from increases in short-term interest rates throughout our fiscal ~~third~~2023 and higher interest-earning asset balances compared with the prior-year quarter ~~due to~~were more than offset by a ~~decrease~~significant increase in ~~average~~interest expense, primarily resulting from a shift in the mix of deposit balances ~~swept to third-party banks as well as a lower net interest margin in our Bank Segment, given the higher level of cash balances we plan to maintain~~ in our Bank segment, ~~due~~as lower-cost RJBDP balances declined compared with the prior-year quarter and a significant portion was replaced with higher-cost ESP balances. However, growth in the ESP allowed us to ~~market conditions, as well as~~deploy remaining RJBDP balances to third-party banks, which coupled with higher rates earned on such balances resulted in an increase in RJBDP fees from such banks compared with the impact from higher-cost diversified funding sources, including our Enhanced Savings Program, which was launched to PCG clients in March 2023. Our domestic client cash sweep balances represent a relatively low-cost funding source. As we pursue further diversified funding sources other than our domestic client cash sweep balances, such as the Enhanced Savings Program, our costs may increase as those funding sources typically reflect higher costs than our domestic client cash sweep balances. In addition, our pace of loan growth may continue to fluctuate over time in response to changes in interest rates and other market factors.prior-year quarter.

Refer to the discussion of our net interest income within the “Management’s Discussion and Analysis - Results of Operations” of our PCG, Bank, and Other segments, where applicable. Also refer to “Management’s Discussion and Analysis - Results of Operations - Private Client Group - Clients’ domestic cash sweep balances” for further information on the RJBDP.

5852


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

The following table presents our consolidated average interest-earning asset and interest-bearing liability balances, interest income and expense and the related rates.

Quarter ended ~~March~~December 31, 2023 compared with the quarter ended ~~March~~December 31, 2022


		Three months ended March 31,															Three months ended December 31,
		2023						2022									2023																				2022
$ in millions	$ in millions	Average daily balance		Interest		Annualized average rate		Average daily balance		Interest		Annualized average rate		$ in millions			Average daily balance						Interest							Annualized average rate									Average daily balance								Interest						Annualized average rate
Interest-earning assets:	Interest-earning assets:													Interest-earning assets:
Bank segment:	Bank segment:
Cash and cash equivalents	Cash and cash equivalents	$	3,093	$	36	4.64	%	$	1,601	$	1	0.22	%
Cash and cash equivalents
Cash and cash equivalents																	$	5,760					$	79						5.41		%							$	2,325							$	22					3.72	%
Available-for-sale securities	Available-for-sale securities	10,869		54		2.00	%	8,869		25		1.16	%	Available-for-sale securities			10,333						56							2.16		%							11,050								53						1.92	%
Loans held for sale and investment: (1) (2)	Loans held for sale and investment: (1) (2)
Loans held for investment:	Loans held for investment:
Loans held for investment:
Loans held for investment:
SBL
SBL
SBL	SBL	14,493		240		6.63	%	6,753		39		2.31	%		14,587				266			266				7.16				7.16		%							15,038				226					226			5.87			5.87	%
C&I loans	C&I loans	11,236		188		6.69	%	8,783		54		2.49	%	C&I loans			10,472			203				203				7.60				7.60		%							11,176				172					172		6.01			6.01	%
CRE loans	CRE loans	6,961		123		7.07	%	3,150		20		2.56	%	CRE loans			7,245			141				141				7.61				7.61		%							6,798				107					107		6.18			6.18	%
REIT loans	REIT loans	1,671		31		7.11	%	1,324		9		2.48	%	REIT loans			1,694			34				34				7.76				7.76		%							1,628				24					24		5.87			5.87	%
Residential mortgage loans	Residential mortgage loans	7,979		62		3.13	%	5,770		38		2.69	%	Residential mortgage loans			8,799			77				77				3.48				3.48		%							7,626				57					57		2.99			2.99	%
Tax-exempt loans (3)	Tax-exempt loans (3)	1,652		10		3.16	%	1,289		9		3.18	%	Tax-exempt loans (3)			1,481			10				10				3.27				3.27		%							1,594				10					10		3.06			3.06	%

Loans held for sale	Loans held for sale	170		3		7.23	%	268		2		2.94	%
Loans held for sale
Loans held for sale																	140						3							8.86		%							189								3						5.39	%
Total loans held for sale and investment	Total loans held for sale and investment	44,162		657		5.97	%	27,337		171		2.53	%	Total loans held for sale and investment			44,418			734				734				6.51				6.51		%							44,049				599					599		5.35			5.35	%
All other interest-earning assets	All other interest-earning assets	153		2		5.80	%	114		2		2.75	%	All other interest-earning assets			237			3				3				5.98				5.98		%							143				2					2		5.29			5.29	%
Interest-earning assets — Bank segment	Interest-earning assets — Bank segment	$	58,277	$	749	5.16	%	$	37,921	$	199	2.11	%	Interest-earning assets — Bank segment			$	60,748		$			$	872			5.66				5.66		%							$	57,567			$				$	676		4.63			4.63	%
All other segments:	All other segments:
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents	Cash and cash equivalents	$	3,130	$	39	5.10	%	$	4,318	$	2	0.19	%		$	3,469			$		$	53			6.07				6.07		%							$	3,436			$				$	33			3.78			3.78	%
Assets segregated for regulatory purposes and restricted cash	Assets segregated for regulatory purposes and restricted cash	4,856		55		4.36	%	19,522		7		0.15	%	Assets segregated for regulatory purposes and restricted cash			3,623			47				47				5.13				5.13		%							6,237				50					50		3.17			3.17	%
Trading assets — debt securities	Trading assets — debt securities	1,057		13		5.05	%	464		4		3.86	%	Trading assets — debt securities			1,100			15				15				5.57				5.57		%							1,080				14					14		5.10			5.10	%
Brokerage client receivables	Brokerage client receivables	2,205		41		7.66	%	2,558		21		3.29	%	Brokerage client receivables			2,138			45				45				8.39				8.39		%							2,398				41					41		6.70			6.70	%
All other interest-earning assets	All other interest-earning assets	1,817		18		3.12	%	1,614		9		2.47	%	All other interest-earning assets			1,936			21				21				3.92				3.92		%							2,001				13					13		2.58			2.58	%
Interest-earning assets — all other segments	Interest-earning assets — all other segments	$	13,065	$	166	4.98	%	$	28,476	$	43	0.63	%	Interest-earning assets — all other segments			$	12,266		$			$	181			5.81				5.81		%							$	15,152			$				$	151		3.93			3.93	%
Total interest-earning assets	Total interest-earning assets	$	71,342	$	915	5.13	%	$	66,397	$	242	1.48	%	Total interest-earning assets			$	73,014		$			$	1,053			5.69				5.69		%							$	72,719			$				$	827		4.48			4.48	%
Interest-bearing liabilities:	Interest-bearing liabilities:
Bank segment:	Bank segment:
Bank segment:
Bank segment:
Bank deposits:	Bank deposits:
Bank deposits:
Bank deposits:
Money market and savings accounts
Money market and savings accounts
Money market and savings accounts	Money market and savings accounts	$	44,554	$	132	1.20	%	$	33,136	$	1	0.01	%		$	32,001			$		$	160			1.99				1.99		%							$	45,165			$				$	123			1.08			1.08	%
Interest-bearing demand deposits	Interest-bearing demand deposits	5,620		62		4.47	%	293		1		1.10	%	Interest-bearing demand deposits			19,565			244				244				4.97				4.97		%							5,149				45					45		3.42			3.42	%
Certificates of deposit	Certificates of deposit	1,859		16		3.57	%	733		3		1.83	%	Certificates of deposit			2,757			32				32				4.56				4.56		%							1,225				8					8		2.48			2.48	%
Total bank deposits (4)	Total bank deposits (4)	52,033		210		1.64	%	34,162		5		0.06	%	Total bank deposits (4)			54,323			436				436				3.19				3.19		%							51,539				176					176		1.35			1.35	%
FHLB advances and all other interest-bearing liabilities	FHLB advances and all other interest-bearing liabilities	1,452		9		2.80	%	864		4		2.17	%	FHLB advances and all other interest-bearing liabilities			1,231			10				10				3.03				3.03		%							1,397				9					9		2.61			2.61	%
Interest-bearing liabilities — Bank segment	Interest-bearing liabilities — Bank segment	$	53,485	$	219	1.67	%	$	35,026	$	9	0.11	%	Interest-bearing liabilities — Bank segment			$	55,554		$			$	446			3.19				3.19		%							$	52,936			$				$	185		1.38			1.38	%
All other segments:	All other segments:
Trading liabilities — debt securities	Trading liabilities — debt securities	$	725	$	7	4.14	%	$	168	$	1	1.89	%
Trading liabilities — debt securities
Trading liabilities — debt securities																	$	756					$	11						5.66		%							$	778							$	10					5.07	%
Brokerage client payables	Brokerage client payables	6,044		23		1.52	%	21,405		—		0.01	%	Brokerage client payables			4,668			20				20				1.72				1.72		%							7,749				17					17		0.87			0.87	%
Senior notes payable	Senior notes payable	2,038		23		4.44	%	2,037		23		4.44	%	Senior notes payable			2,039			23				23				4.51				4.51		%							2,038				23					23		4.52			4.52	%
All other interest-bearing liabilities (4)	All other interest-bearing liabilities (4)	113		12		3.72	%	199		5		5.77	%	All other interest-bearing liabilities (4)			980			7				7				2.96				2.96		%							585				6					6		2.61			2.61	%
Interest-bearing liabilities — all other segments	Interest-bearing liabilities — all other segments	$	8,920	$	65	2.43	%	$	23,809	$	29	0.47	%	Interest-bearing liabilities — all other segments			$	8,443		$			$	61			2.89				2.89		%							$	11,150			$				$	56		1.92			1.92	%
Total interest-bearing liabilities	Total interest-bearing liabilities	$	62,405	$	284	1.78	%	$	58,835	$	38	0.26	%	Total interest-bearing liabilities			$	63,997		$			$	507			3.15				3.15		%							$	64,086			$				$	241		1.47			1.47	%
Firmwide net interest income	Firmwide net interest income			$	631					$	204
Net interest margin (net yield on interest-earning assets)	Net interest margin (net yield on interest-earning assets)
Net interest margin (net yield on interest-earning assets)
Net interest margin (net yield on interest-earning assets)
Bank segment
Bank segment
Bank segment	Bank segment					3.63	%					2.01	%																					2.74	%																						3.36	%
Firmwide	Firmwide					3.59	%					1.25	%	Firmwide																					2.97	%																						3.19	%

(1)

~~(1)~~ Loans are presented net of unamortized purchase discounts or premiums, unearned income, ~~and~~ deferred origination fees and ~~costs.~~costs, and charge-offs.

(2)Nonaccrual loans are included in the average loan balances. Any payments received for corporate nonaccrual loans are applied entirely to principal. Interest income on residential mortgage nonaccrual loans is recognized on a cash basis.

(3)The ~~yield~~average rate on tax-exempt loans in the preceding table is presented on a taxable-equivalent basis utilizing the applicable federal statutory rates for each of the ~~years~~periods presented.

(4)The average balance, interest expense, and average rate for “Total bank deposits” included amounts associated with affiliate deposits. Such amounts are eliminated in consolidation and are offset in “All other interest-bearing liabilities” under “All other segments”.

5953


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates. The following table shows the effect that these factors had on the interest earned on our interest-earning assets and the interest incurred on our interest-bearing liabilities. The effect of changes in volume is determined by multiplying the change in volume by the previous period’s average rate. Similarly, the effect of rate changes is calculated by multiplying the change in average rate by the previous period’s volume. Changes attributable to both volume and rate have been allocated proportionately.


		Three months ended December 31,
		Three months ended December 31,
		Three months ended December 31,
		2023 compared to 2022
		2023 compared to 2022
		2023 compared to 2022
		Three months ended March 31,
		2023 compared to 2022
		Increase/(decrease) due to
$ in millions	$ in millions	Volume		Rate		Total
$ in millions
$ in millions
Interest-earning assets:
Interest-earning assets:
Interest-earning assets:	Interest-earning assets:	Interest income						Interest income
Bank segment:	Bank segment:
Cash and cash equivalents	Cash and cash equivalents	$	2	$	33	$	35
Cash and cash equivalents
Cash and cash equivalents
Available-for-sale securities
Available-for-sale securities
Available-for-sale securities	Available-for-sale securities	7		22		29
Loans held for sale and investment:	Loans held for sale and investment:
Loans held for sale and investment:
Loans held for sale and investment:
Loans held for investment:
Loans held for investment:
Loans held for investment:	Loans held for investment:
SBL	SBL	76		125		201
SBL
SBL
C&I loans
C&I loans
C&I loans	C&I loans	19		115		134
CRE loans	CRE loans	41		62		103
CRE loans
CRE loans
REIT loans
REIT loans
REIT loans	REIT loans	3		19		22
Residential mortgage loans	Residential mortgage loans	17		7		24
Residential mortgage loans
Residential mortgage loans
Tax-exempt loans	Tax-exempt loans	—		1		1

Tax-exempt loans
Tax-exempt loans
Loans held for sale
Loans held for sale
Loans held for sale	Loans held for sale	—		1		1
Total loans held for sale and investment	Total loans held for sale and investment	156		330		486
Total loans held for sale and investment
Total loans held for sale and investment
All other interest-earning assets
All other interest-earning assets
All other interest-earning assets	All other interest-earning assets	1		(1)		—
Interest-earning assets — Bank segment	Interest-earning assets — Bank segment	$	166	$	384	$	550
Interest-earning assets — Bank segment
Interest-earning assets — Bank segment
All other segments:
All other segments:
All other segments:	All other segments:
Cash and cash equivalents	Cash and cash equivalents	$	—	$	37	$	37
Cash and cash equivalents
Cash and cash equivalents
Assets segregated for regulatory purposes and restricted cash
Assets segregated for regulatory purposes and restricted cash
Assets segregated for regulatory purposes and restricted cash	Assets segregated for regulatory purposes and restricted cash	(11)		59		48
Trading assets — debt securities	Trading assets — debt securities	6		3		9
Trading assets — debt securities
Trading assets — debt securities
Brokerage client receivables
Brokerage client receivables
Brokerage client receivables	Brokerage client receivables	(6)		26		20
All other interest-earning assets	All other interest-earning assets	4		5		9
All other interest-earning assets
All other interest-earning assets
Interest-earning assets — all other segments
Interest-earning assets — all other segments
Interest-earning assets — all other segments	Interest-earning assets — all other segments	$	(7)	$	130	$	123
Total interest-earning assets	Total interest-earning assets	$	159	$	514	$	673
Total interest-earning assets
Total interest-earning assets



Interest-bearing liabilities:
Interest-bearing liabilities:
Interest-bearing liabilities:	Interest-bearing liabilities:	Interest expense						Interest expense
Bank segment:	Bank segment:
Bank deposits:	Bank deposits:
Bank deposits:
Bank deposits:
Money market and savings accounts
Money market and savings accounts
Money market and savings accounts	Money market and savings accounts	$	1	$	130	$	131
Interest-bearing demand deposits	Interest-bearing demand deposits	60		1		61
Interest-bearing demand deposits
Interest-bearing demand deposits
Certificates of deposit
Certificates of deposit
Certificates of deposit	Certificates of deposit	8		5		13
Total bank deposits	Total bank deposits	69		136		205
Total bank deposits
Total bank deposits
FHLB advances and all other interest-bearing liabilities
FHLB advances and all other interest-bearing liabilities
FHLB advances and all other interest-bearing liabilities	FHLB advances and all other interest-bearing liabilities	4		1		5
Interest-bearing liabilities — Bank segment	Interest-bearing liabilities — Bank segment	$	73	$	137	$	210
Interest-bearing liabilities — Bank segment
Interest-bearing liabilities — Bank segment
All other segments:
All other segments:
All other segments:	All other segments:
Trading liabilities — debt securities	Trading liabilities — debt securities	$	4	$	2	$	6
Trading liabilities — debt securities
Trading liabilities — debt securities
Brokerage client payables	Brokerage client payables	3		20		23

Brokerage client payables
Brokerage client payables
Senior notes payable
Senior notes payable
Senior notes payable
All other interest-bearing liabilities
All other interest-bearing liabilities
All other interest-bearing liabilities	All other interest-bearing liabilities	4		3		7
Interest-bearing liabilities — all other segments	Interest-bearing liabilities — all other segments	$	11	$	25	$	36
Interest-bearing liabilities — all other segments
Interest-bearing liabilities — all other segments
Total interest-bearing liabilities
Total interest-bearing liabilities
Total interest-bearing liabilities	Total interest-bearing liabilities	$	84	$	162	$	246
Change in firmwide net interest income	Change in firmwide net interest income	$	75	$	352	$	427
Change in firmwide net interest income
Change in firmwide net interest income

6054


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

~~Six months ended March 31, 2023 compared with the six months ended March 31, 2022~~

Six months ended March 31,
2023 2022
$ in millions Average
daily
balance Interest Annualized
average
rate Average
daily
balance Interest Annualized
average
rate
Interest-earning assets:
Bank segment:
Cash and cash equivalents $ 2,705 $ 58 4.24 % $ 1,876 $ 2 0.19 %
Available-for-sale securities 10,961 107 1.95 % 8,688 47 1.09 %
Loans held for sale and investment: (1) (2)
Loans held for investment:
SBL 14,768 466 6.27 % 6,519 74 2.26 %
C&I loans 11,206 357 6.31 % 8,681 109 2.49 %
CRE loans 6,879 233 6.75 % 3,044 40 2.61 %
REIT loans 1,649 55 6.64 % 1,227 16 2.51 %
Residential mortgage loans 7,801 119 3.06 % 5,609 75 2.68 %
Tax-exempt loans (3)
1,623 20 3.11 % 1,293 17 3.19 %
Loans held for sale 179 6 6.27 % 254 4 2.94 %
Total loans held for sale and investment 44,105 1,256 5.68 % 26,627 335 2.53 %
All other interest-earning assets 148 4 5.55 % 141 2 2.21 %
Interest-earning assets — Bank segment $ 57,919 $ 1,425 4.91 % $ 37,332 $ 386 2.07 %
All other segments:
Cash and cash equivalents $ 3,401 $ 72 4.25 % $ 4,078 $ 4 0.19 %
Assets segregated for regulatory purposes and restricted cash 5,554 105 3.81 % 15,844 11 0.14 %
Trading assets — debt securities 1,069 27 5.08 % 516 9 3.35 %
Brokerage client receivables 2,301 82 7.16 % 2,521 42 3.32 %
All other interest-earning assets 1,909 31 2.79 % 1,622 15 1.92 %
Interest-earning assets — all other segments $ 14,234 $ 317 4.42 % $ 24,581 $ 81 0.66 %
Total interest-earning assets $ 72,153 $ 1,742 4.81 % $ 61,913 $ 467 1.51 %
Interest-bearing liabilities:
Bank segment:
Bank deposits:
Money market and savings accounts $ 44,864 $ 253 1.13 % $ 32,542 $ 1 0.01 %
Interest-bearing demand deposits 5,382 109 4.05 % 239 3 2.78 %
Certificates of deposit 1,538 24 3.13 % 789 7 1.85 %
Total bank deposits (4)
51,784 386 1.49 % 33,570 11 0.06 %
FHLB advances and all other interest-bearing liabilities 1,374 18 2.63 % 863 9 2.19 %
Interest-bearing liabilities — Bank segment $ 53,158 $ 404 1.52 % $ 34,433 $ 20 0.12 %
All other segments:
Trading liabilities — debt securities $ 752 $ 17 4.63 % $ 187 $ 2 1.63 %
Brokerage client payables 6,842 40 1.16 % 17,275 1 0.01 %
Senior notes payable 2,038 46 4.44 % 2,037 46 4.44 %
All other interest-bearing liabilities (4)
133 18 2.45 % 194 6 6.28 %
Interest-bearing liabilities — all other segments $ 9,765 $ 121 2.13 % $ 19,693 $ 55 0.55 %
Total interest-bearing liabilities $ 62,923 $ 525 1.61 % $ 54,126 $ 75 0.28 %
Firmwide net interest income $ 1,217 $ 392
Net interest margin (net yield on interest-earning assets)
Bank segment 3.51 % 1.97 %
Firmwide 3.38 % 1.27 %

~~(1) Loans are presented net of unamortized discounts, unearned income, and deferred loan fees and costs.~~

(2) Nonaccrual loans are included in the average loan balances. Any payments received for corporate nonaccrual loans are applied entirely to principal. Interest income on residential mortgage nonaccrual loans is recognized on a cash basis.

~~(3) The yield on tax-exempt loans in the preceding table is presented on a taxable-equivalent basis utilizing the applicable federal statutory rates for each of the years presented.~~

(4) The average balance, interest expense, and average rate for “Total bank deposits” included amounts associated with affiliate deposits. Such amounts are eliminated in consolidation and are offset in “All other interest-bearing liabilities” under “All other segments”.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates. The following table shows the effect that these factors had on the interest earned on our interest-earning assets and the interest incurred on our interest-bearing liabilities. The effect of changes in volume is determined by multiplying the change in volume by the previous period’s average yield/cost. Similarly, the effect of rate changes is calculated by multiplying the change in average yield/cost by the previous period’s volume. Changes attributable to both volume and rate have been allocated proportionately.

Six months ended March 31,
2023 compared to 2022
Increase/(decrease) due to
$ in millions Volume Rate Total
Interest-earning assets: Interest income
Bank segment:
Cash and cash equivalents $ 2 $ 54 $ 56
Available-for-sale securities 15 45 60
Loans held for sale and investment:
Loans held for investment:
SBL 163 229 392
C&I loans 40 208 248
CRE loans 85 108 193
REIT loans 7 32 39
Residential mortgage loans 33 11 44
Tax-exempt loans 4 (1) 3
Loans held for sale (3) 5 2
Total loans held for sale and investment 329 592 921
All other interest-earning assets — 2 2
Interest-earning assets — Bank segment $ 346 $ 693 $ 1,039
All other segments:
Cash and cash equivalents $ (2) $ 70 $ 68
Assets segregated for regulatory purposes and restricted cash (26) 120 94
Trading assets — debt securities 12 6 18
Brokerage client receivables (11) 51 40
All other interest-earning assets 5 11 16
Interest-earning assets — all other segments $ (22) $ 258 $ 236
Total interest-earning assets $ 324 $ 951 $ 1,275
Interest-bearing liabilities: Interest expense
Bank segment:
Bank deposits:
Money market and savings accounts $ 1 $ 251 $ 252
Interest-bearing demand deposits 104 2 106
Certificates of deposit 10 7 17
Total bank deposits 115 260 375
FHLB advances and all other interest-bearing liabilities 7 2 9
Interest-bearing liabilities — Bank segment $ 122 $ 262 $ 384
All other segments:
Trading liabilities — debt securities $ 9 $ 6 $ 15
Brokerage client payables (2) 41 39
All other interest-bearing liabilities 4 8 12
Interest-bearing liabilities — all other segments $ 11 $ 55 $ 66
Total interest-bearing liabilities $ 133 $ 317 $ 450
Change in firmwide net interest income $ 191 $ 634 $ 825

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

RESULTS OF OPERATIONS – PRIVATE CLIENT GROUP

For an overview of our PCG segment operations, as well as a description of the key factors impacting our PCG results of operations, refer to the information presented in “Item 1 - Business” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our ~~2022~~2023 Form 10-K.

Operating results




		Three months ended March 31,						Six months ended March 31,
$ in millions	$ in millions	2023		2022		% change		2023		2022		% change
$ in millions
$ in millions
Revenues:
Revenues:
Revenues:	Revenues:
Asset management and related administrative fees	Asset management and related administrative fees	$	1,102	$	1,245	(11)	%	$	2,155	$	2,407	(10)	%
Asset management and related administrative fees
Asset management and related administrative fees
Brokerage revenues:
Brokerage revenues:
Brokerage revenues:	Brokerage revenues:
Mutual and other fund products	Mutual and other fund products	135		166		(19)	%	263		337		(22)	%
Mutual and other fund products
Mutual and other fund products
Insurance and annuity products
Insurance and annuity products
Insurance and annuity products	Insurance and annuity products	113		110		3	%	217		221		(2)	%
Equities, ETFs and fixed income products	Equities, ETFs and fixed income products	116		121		(4)	%	229		236		(3)	%
Equities, ETFs and fixed income products
Equities, ETFs and fixed income products
Total brokerage revenues
Total brokerage revenues
Total brokerage revenues	Total brokerage revenues	364		397		(8)	%	709		794		(11)	%
Account and service fees:	Account and service fees:
Account and service fees:
Account and service fees:
Mutual fund and annuity service fees
Mutual fund and annuity service fees
Mutual fund and annuity service fees	Mutual fund and annuity service fees	105		109		(4)	%	203		223		(9)	%
RJBDP fees:	RJBDP fees:
RJBDP fees:
RJBDP fees:
Bank segment
Bank segment
Bank segment	Bank segment	311		49		535	%	579		99		485	%
Third-party banks	Third-party banks	100		20		400	%	237		37		541	%
Third-party banks
Third-party banks
Client account and other fees
Client account and other fees
Client account and other fees	Client account and other fees	56		53		6	%	116		102		14	%
Total account and service fees	Total account and service fees	572		231		148	%	1,135		461		146	%
Total account and service fees
Total account and service fees
Investment banking
Investment banking
Investment banking	Investment banking	9		9		—	%	18		22		(18)	%
Interest income	Interest income	117		37		216	%	226		70		223	%
Interest income
Interest income
All other
All other
All other	All other	9		6		50	%	15		13		15	%
Total revenues	Total revenues	2,173		1,925		13	%	4,258		3,767		13	%
Total revenues
Total revenues
Interest expense
Interest expense
Interest expense	Interest expense	(29)		(3)		867	%	(51)		(6)		750	%
Net revenues	Net revenues	2,144		1,922		12	%	4,207		3,761		12	%
Net revenues
Net revenues
Non-interest expenses:
Non-interest expenses:
Non-interest expenses:	Non-interest expenses:
Financial advisor compensation and benefits	Financial advisor compensation and benefits	1,118		1,231		(9)	%	2,193		2,418		(9)	%
Financial advisor compensation and benefits
Financial advisor compensation and benefits
Administrative compensation and benefits
Administrative compensation and benefits
Administrative compensation and benefits	Administrative compensation and benefits	345		289		19	%	687		572		20	%
Total compensation, commissions and benefits	Total compensation, commissions and benefits	1,463		1,520		(4)	%	2,880		2,990		(4)	%
Total compensation, commissions and benefits
Total compensation, commissions and benefits
Non-compensation expenses:
Non-compensation expenses:
Non-compensation expenses:	Non-compensation expenses:
Communications and information processing	Communications and information processing	100		84		19	%	189		155		22	%
Communications and information processing
Communications and information processing
Occupancy and equipment
Occupancy and equipment
Occupancy and equipment	Occupancy and equipment	53		50		6	%	104		96		8	%
Business development	Business development	33		25		32	%	70		52		35	%
Business development
Business development
Professional fees
Professional fees
Professional fees	Professional fees	17		13		31	%	30		22		36	%
All other	All other	37		17		118	%	59		38		55	%
All other
All other
Total non-compensation expenses
Total non-compensation expenses
Total non-compensation expenses	Total non-compensation expenses	240		189		27	%	452		363		25	%
Total non-interest expenses	Total non-interest expenses	1,703		1,709		—	%	3,332		3,353		(1)	%
Total non-interest expenses
Total non-interest expenses
Pre-tax income	Pre-tax income	$	441	$	213	107	%	$	875	$	408	114	%
Pre-tax income
Pre-tax income

6355


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Selected key metrics

PCG client asset balances


		As of
		As of
		As of
		As of
$ in billions	$ in billions	March 31, 2023			December 31, 2022			September 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
Assets under administration (“AUA”) (1)		$	1,171.1		$	1,114.3		$	1,039.0		$	1,198.3		$	1,199.8		$	1,115.4
Assets in fee-based accounts (1) (2)		$	666.3		$	633.1		$	586.0		$	678.0		$	677.8		$	627.1
Assets under administration (“AUA”)
Assets under administration (“AUA”)
Assets under administration (“AUA”)
Registered Investment Advisor (“RIA”) & Custody Services (“RCS”) AUA (1)
Registered Investment Advisor (“RIA”) & Custody Services (“RCS”) AUA (1)
Registered Investment Advisor (“RIA”) & Custody Services (“RCS”) AUA (1)
Assets in fee-based accounts (2)
Assets in fee-based accounts (2)
Assets in fee-based accounts (2)
RCS assets in fee-based accounts (1)
RCS assets in fee-based accounts (1)
RCS assets in fee-based accounts (1)
Percent of AUA in fee-based accounts	Percent of AUA in fee-based accounts	56.9		%	56.8		%	56.4		%	56.6		%	56.5		%	56.2		%
Percent of AUA in fee-based accounts
Percent of AUA in fee-based accounts

(1)~~Includes~~Represents assets associated with firms affiliated with us through our ~~Registered Investment Advisor & Custody Services (“RCS”)~~RCS division, ~~of $123.5 billion as of March 31, 2023, $115.6 billion as of December 31, 2022, $108.5 billion as of September 30, 2022, $99.2 billion as of March 31, 2022, $101.6 billion as of December 31, 2021,~~which are included in AUA and $92.7 billion as of September 30, 2021. Of these amounts, $103.6 billion as of March 31, 2023, $96.6 billion as of December 31, 2022, $89.9 billion as of September 30, 2022, $84.0 billion as of March 31, 2022, $85.5 billion as of December 31, 2021, and $77.2 billion as of September 30, 2021 wereassets in fee-based ~~assets.~~accounts. Based on the nature of the services provided to such firms, revenues related to these assets are included in “Account and service fees.”

(2)A portion of our “Assets in fee-based accounts” is invested in “managed programs” overseen by our Asset Management segment, specifically our Asset Management Services division of RJ&A (“AMS”). These assets are included in our financial assets under management as disclosed in the “Selected key metrics” section of our “Management’s Discussion and Analysis - Results of Operations - Asset Management.”

PCG net new assets


		Three months ended March 31,						Six months ended March 31,
		Three months ended December 31,
		Three months ended December 31,
		Three months ended December 31,
$ in millions
$ in millions
$ in millions	$ in millions	2023			2022			2023			2022
Domestic Private Client Group net new assets (1)	Domestic Private Client Group net new assets (1)	$	21,473		$	24,093		$	44,699		$	60,194
Domestic Private Client Group net new assets (1)
Domestic Private Client Group net new assets (1)
Domestic Private Client Group net new assets growth - annualized (2)	Domestic Private Client Group net new assets growth - annualized (2)	8.4		%	8.6		%	9.4		%	11.4		%
Domestic Private Client Group net new assets growth - annualized (2)
Domestic Private Client Group net new assets growth - annualized (2)

(1)Domestic Private Client Group net new assets represents domestic Private Client Group client inflows, including dividends and interest, less domestic Private Client Group client outflows, including commissions, advisory fees and other fees.

(2)The Domestic Private Client Group net new asset growth - annualized percentage is based on the beginning Domestic Private Client Group AUA balance for the indicated period.

PCG AUA and PCG assets in fee-based accounts as of ~~March~~December 31, 2023 each increased ~~5% compared with December 31, 2022, and increased 13% and 14%, respectively,~~9% compared with September 30, ~~2022~~2023, due to ~~equity~~ market appreciation and strong net inflows of client assets during the ~~period. We expect that the 5% increase in fee-based accounts compared with December 31, 2022 will positively impact our asset management and related administrative fees for our fiscal third~~ quarter, ~~of 2023. Compared with March 31, 2022, PCG AUA declined 2%,~~ primarily due to ~~a net decline in equity markets since March 31, 2022, offset by~~ the favorable ~~impacts~~impact of our recruiting. PCG assets in fee-based accounts continued to be a significant percentage of overall PCG AUA due to many clients’ preference for fee-based alternatives versus transaction-based accounts and, as a result, a significant portion of our PCG revenues is more directly impacted by market movements.

Fee-based accounts within our PCG segment are comprised of a wide array of products and programs that we offer our clients. The majority of assets in fee-based accounts within our PCG segment are invested in programs for which our financial advisors provide investment advisory services, either on a discretionary or non-discretionary basis. Administrative services for such accounts (e.g., record-keeping) are generally performed by our Asset Management segment and, as a result, a portion of the related revenue is shared with the Asset Management segment.

We also offer our clients fee-based accounts that are invested in “managed programs” overseen by AMS, which is part of our Asset Management segment. Fee-billable assets invested in managed programs are included in both “Assets in fee-based accounts” in the preceding table and “Financial assets under management” in the Asset Management segment. Revenues related to managed programs are shared by our PCG and Asset Management segments. The Asset Management segment receives a higher portion of the revenues related to accounts invested in managed programs, as compared to the portion received for non-managed programs, ~~for which our financial advisors provide investment advisory services,~~ as it is performing portfolio management services in addition to administrative services.

The vast majority of the revenues we earn from fee-based accounts are recorded in “Asset management and related administrative fees” on our Condensed Consolidated Statements of Income and Comprehensive Income. Fees received from such accounts are based on the value of client assets in fee-based accounts and vary based on the specific account types in which the client invests and the level of assets in the client relationship. As fees for the majority of such accounts are billed based on balances as of the beginning of the quarter, revenues from fee-based accounts may not be immediately affected by changes in asset values, but rather the impacts are seen in the following quarter.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

~~Management’s Discussion and Analysis~~

Financial advisors


			March 31, 2023	December 31, 2022	September 30, 2022	March 31, 2022	December 31, 2021	September 30, 2021
		December 31, 2023							December 31, 2023	September 30, 2023	June 30, 2023	March 31, 2023	December 31, 2022
Employees	Employees		3,628	3,631	3,638	3,601	3,447	3,461
Independent contractors (1)			5,098	5,068	5,043	5,129	5,017	5,021
Independent contractors
Total advisors	Total advisors		8,726	8,699	8,681	8,730	8,464	8,482

~~(1) Includes the impact of the transfer of one firm with 166 financial advisors previously affiliated as independent contractors to our RCS division during our fiscal third quarter of 2022.~~

The number of financial advisors as of ~~March~~December 31, 2023 ~~increased~~decreased slightly compared with ~~December 31, 2022 and~~ September 30, ~~2022,~~2023, as ~~the impacts~~planned retirements drove a small net decrease in advisor count, net of new recruits and trainees that were moved into production ~~roles were partially offset by financial advisors who left the firm, including planned~~roles. Planned retirements, where assets are generally retained at the firm pursuant to advisor succession ~~plans. The recruiting pipeline remains solid across our affiliation options; however,~~plans, are seasonally higher in the ~~timing of financial advisors joining the firm~~fiscal first quarter. We have and may ~~be impacted by market uncertainty. We expect to~~ continue to experience transfers to our RCS division in fiscal ~~2023;~~2024; however, consistent with our experience in fiscal ~~2022,~~2023, we dowould not expect these financial advisor transfers to significantly impact our results of operations. Advisors in our RCS division are not included in our financial advisor metric although their client assets are included in PCG AUA.

Clients’ domestic cash sweep balances and ~~Enhanced Savings Program~~ESP balances


			As of
		As of																		As of
$ in millions	$ in millions		March 31, 2023		December 31, 2022		September 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		$ in millions	December 31, 2023	September 30, 2023	June 30, 2023	March 31, 2023		December 31, 2022
RJBDP:	RJBDP:
Bank segment
Bank segment
Bank segment	Bank segment		$	37,682	$	39,098	$	38,705	$	33,570	$	33,097	$	31,410
Third-party banks	Third-party banks		9,408		18,231		21,964		25,887		24,316		24,496
Subtotal RJBDP	Subtotal RJBDP		47,090		57,329		60,669		59,457		57,413		55,906
Client Interest Program (“CIP”)	Client Interest Program (“CIP”)		2,385		3,053		6,445		17,013		16,065		10,762
Total clients’ domestic cash sweep balances	Total clients’ domestic cash sweep balances		49,475		60,382		67,114		76,470		73,478		66,668
Enhanced Savings Program (1)			2,746		—		—		—		—		—
Total clients’ domestic cash sweep and Enhanced Savings Program balances			$	52,221	$	60,382	$	67,114	$	76,470	$	73,478	$	66,668
ESP (1)
Total clients’ domestic cash sweep and ESP balances

(1)In March 2023, we launched our ~~Enhanced Savings Program,~~ESP, in which Private Client Group clients may deposit cash in a high-yield Raymond James Bank account. These balances are reflected in Bank deposits on our Condensed Consolidated Statements of Financial Condition.

Three months ended March 31, Six months ended March 31,
2023 2022 2023 2022
Average yield on RJBDP - third-party banks 3.25 % 0.32 % 2.93 % 0.30 %


	Three months ended December 31,
	2023		2022
Average yield on RJBDP - third-party banks	3.66	%	2.72	%

A significant portion of our domestic clients’ cash is included in the RJBDP, a multi-bank sweep program in which clients’ cash deposits in their ~~brokerage~~ accounts are swept into interest-bearing deposit accounts at either ~~Raymond James Bank or TriState Capital Bank,~~of our bank subsidiaries, which are included in our Bank segment, or various third-party banks. Balances swept to third-party banks are not reflected on our Condensed Consolidated Statements of Financial Condition. Our PCG segment earns servicing fees for the administrative services we provide related to our clients’ deposits that are swept to such banks as part of the RJBDP. These servicing fees are variable in nature and fluctuate based on client cash balances in the program, as well as the level of short-term interest rates and the interest paid to clients on balances in the RJBDP. Under our intersegment policies, the PCG segment receives the greater of a base servicing fee or a net yield equivalent to the average yield that the firm would otherwise receive from third-party banks in the RJBDP. In the current ~~market~~interest-rate environment, the PCG segment revenues ~~will~~ reflect RJBDP fee revenues derived from the yield from third-party banks in the program and the Bank segment RJBDP servicing costs reflect such market rate for the deposits. The fees that the PCG segment earns from the Bank segment, as well as the servicing costs incurred on the deposits in the Bank segment, are eliminated in consolidation.

The “Average yield on RJBDP - third-party banks” in the preceding table is computed by dividing annualized RJBDP fees from third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balance at third-party banks. The average yield on RJBDP - third-party banks increased from the prior-year quarter, largely as a result of the significant increases in the Fed’s short-term benchmark interest ~~rate, which began in March 2022. We expect a decline in our RJBDP fees in our fiscal third quarter of 2023 due to lower average balances in the program.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

rate.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Total ~~client~~clients’ domestic cash sweep and ~~Enhanced Savings Program~~ESP balances ~~declined 14% compared with December 31, 2022 and 22%~~increased 3% compared with September 30, ~~2022,~~2023, due to growth in both the ESP as a result of continued cash sorting activity given the higher short-term interest rate environment, partially offset by the launch of the Enhanced Savings Program in March 2023, which resulted in $2.75 billion ofwell as client cash ~~balances as of March 31, 2023.~~sweep balances. PCG segment results can be impacted by not only changes in the level of client cash balances, but also by the allocation of client cash balances between the RJBDP, the CIP, and the ~~Enhanced Savings Program,~~ESP, as the PCG segment may earn different amounts from each of these client cash destinations, depending on multiple factors. For example, continued growth in the ESP, which was launched to PCG clients in March 2023, has allowed us to sweep more RJBDP balances to third-party banks and reduce the amount of RJBDP balances held in our Bank segment.

Quarter ended ~~March~~December 31, 2023 compared with the quarter ended ~~March~~December 31, 2022

Net revenues of ~~$2.14~~$2.23 billion increased ~~12%~~8% and pre-tax income of ~~$441~~$439 million increased ~~107%~~1%.

Asset management and related administrative fees ~~decreased $143~~increased $138 million, or ~~11%~~13%, primarily due to ~~lower~~higher assets in fee-based accounts at the beginning of the current quarter compared with the prior-year quarter ~~due to declines in the equity market.~~resulting from growth as a result of advisor recruiting as well as market appreciation.

Brokerage revenues ~~decreased $33~~increased $37 million, or 8%11%, primarily due to ~~lower trailing revenues from mutual fund and annuity products primarily resulting from market-driven declines~~higher client activity in ~~asset values for products for which we receive trails.~~the current quarter, particularly in fixed annuities.

Account and service fees ~~increased $341~~decreased $17 million, or ~~148%~~3%, primarily due to ~~higher~~a decrease in RJBDP fees resulting from ~~both~~lower client cash sweep balances. RJBDP fees paid to PCG from our Bank segment ~~and third-party banks resulting from significantly higher short-term interest rates compared with the prior-year quarter.~~

~~Net interest income increased $54 million, or 159%,~~decreased due to ~~the increase~~a decline in ~~short-term interest rates applicable~~balances allocated to our ~~cash, segregated cash, and client margin account balances.~~

Compensation-related expenses decreased $57 million, or 4%, primarily due to lower commission expense resulting from lower compensable revenues, including asset management and related administrative fees and brokerage revenues,Bank segment partially offset by an increase in ~~compensation costs to support our growth, annual salary increases, and, to a lesser extent, incremental expenses arising~~short-term interest rates, while RJBDP fees from ~~our January 2022 acquisition of Charles Stanley.~~

~~Non-compensation expenses~~third-party banks increased ~~$51 million, or 27%, driven by higher legal and regulatory costs, including~~slightly resulting from the impact of an unfavorable arbitration award during the current quarter, as well as higher communications and information processing expenses primarily due to ongoing enhancements of our technology platforms, anaforementioned increase in ~~travel and event-related expenses compared with the relatively low levels in the prior-year quarter, and incremental expenses resulting from our acquisition of Charles Stanley.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

~~Six months ended March 31, 2023 compared with the six months ended March 31, 2022~~

~~Net revenues of $4.21 billion increased 12% and pre-tax income of $875 million increased 114%.~~

Asset management and related administrative fees decreased $252 million, or 10%, primarily due to lower assets in fee-based accounts at the beginning of each of the current-year quarterly billing periods compared with the prior-year quarterly billing periods,short-term interest rates, partially offset by ~~incremental revenues arising from~~a decrease in RJBDP balances. Partially offsetting the ~~acquisition of Charles Stanley.~~

~~Brokerage revenues decreased $85 million, or 11%, primarily due to lower trailing revenues from~~decline in total RJBDP fees, mutual fund ~~and annuity products primarily resulting from market-driven declines in asset values for products for which we receive trails.~~

~~Account and~~ service fees increased, ~~$674 million, or 146%,~~ primarily ~~due to an increase in RJBDP fees~~ from ~~both our Bank segment and third-party banks resulting from significantly~~ higher short-term interest rates compared with the prior-year period, partially offset by lower client cash balances in the RJBDP. Mutual fund service fees decreased primarily due to market-driven declines inaverage mutual fund assets.

Net interest income increased ~~$111~~$5 million, or ~~173%~~6%, primarily due to the significant increase in short-term interest rates applicable to our cash, segregated cash, and client margin account balances.

Compensation-related expenses ~~decreased $110~~increased $152 million, or 4%11%, primarily due to ~~lower~~higher commission expense resulting from ~~lower~~higher compensable revenues, including asset management and related administrative fees and brokerage revenues, ~~partially offset by~~as well as an increase in compensation costs both to support our growth and annual ~~salary~~cost increases, ~~and incremental expenses resulting from our acquisition of Charles Stanley.~~including salaries.

Non-compensation expenses increased ~~$89~~$6 million, or ~~25%~~3%, due to ~~incremental expenses resulting from our acquisition of Charles Stanley,~~ higher communications and information processing expenses, ~~primarily due to ongoing enhancements~~occupancy expenses, and business development expenses, partially offset by the impact of ~~our technology platforms, increases in travel and event-related expenses compared with the low levels incurred in the prior-year period, and the aforementioned increases in~~lower provisions for legal and regulatory ~~costs.~~

matters.

6758


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

RESULTS OF OPERATIONS – CAPITAL MARKETS

For an overview of our Capital Markets segment operations, as well as a description of the key factors impacting our Capital Markets results of operations, refer to the information presented in “Item 1 - Business” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our ~~2022~~2023 Form 10-K.

Operating results




		Three months ended March 31,						Six months ended March 31,
$ in millions	$ in millions	2023		2022		% change		2023		2022		% change
$ in millions
$ in millions
Revenues:
Revenues:
Revenues:	Revenues:
Brokerage revenues:	Brokerage revenues:
Brokerage revenues:
Brokerage revenues:
Fixed income
Fixed income
Fixed income	Fixed income	$	96	$	125	(23)	%	$	196	$	245	(20)	%
Equity	Equity	34		41		(17)	%	68		80		(15)	%
Equity
Equity
Total brokerage revenues
Total brokerage revenues
Total brokerage revenues	Total brokerage revenues	130		166		(22)	%	264		325		(19)	%
Investment banking:	Investment banking:
Investment banking:
Investment banking:
Merger & acquisition and advisory
Merger & acquisition and advisory
Merger & acquisition and advisory	Merger & acquisition and advisory	87		139		(37)	%	189		410		(54)	%
Equity underwriting	Equity underwriting	29		52		(44)	%	44		149		(70)	%
Equity underwriting
Equity underwriting
Debt underwriting
Debt underwriting
Debt underwriting	Debt underwriting	29		35		(17)	%	45		79		(43)	%
Total investment banking	Total investment banking	145		226		(36)	%	278		638		(56)	%
Total investment banking
Total investment banking
Interest income
Interest income
Interest income	Interest income	21		5		320	%	44		10		340	%
Affordable housing investments business revenues	Affordable housing investments business revenues	23		15		53	%	47		50		(6)	%
Affordable housing investments business revenues
Affordable housing investments business revenues
All other
All other
All other	All other	3		4		(25)	%	7		9		(22)	%
Total revenues	Total revenues	322		416		(23)	%	640		1,032		(38)	%
Total revenues
Total revenues
Interest expense
Interest expense
Interest expense	Interest expense	(20)		(3)		567	%	(43)		(5)		760	%
Net revenues	Net revenues	302		413		(27)	%	597		1,027		(42)	%
Net revenues
Net revenues
Non-interest expenses:
Non-interest expenses:
Non-interest expenses:	Non-interest expenses:
Compensation, commissions and benefits	Compensation, commissions and benefits	231		253		(9)	%	444		584		(24)	%
Compensation, commissions and benefits
Compensation, commissions and benefits
Non-compensation expenses:
Non-compensation expenses:
Non-compensation expenses:	Non-compensation expenses:
Communications and information processing	Communications and information processing	26		22		18	%	50		44		14	%
Communications and information processing
Communications and information processing
Occupancy and equipment
Occupancy and equipment
Occupancy and equipment	Occupancy and equipment	11		10		10	%	21		19		11	%
Business development	Business development	17		9		89	%	32		17		88	%
Business development
Business development
Professional fees
Professional fees
Professional fees	Professional fees	14		7		100	%	27		21		29	%
All other	All other	37		25		48	%	73		54		35	%
All other
All other
Total non-compensation expenses
Total non-compensation expenses
Total non-compensation expenses	Total non-compensation expenses	105		73		44	%	203		155		31	%
Total non-interest expenses	Total non-interest expenses	336		326		3	%	647		739		(12)	%
Total non-interest expenses
Total non-interest expenses
Pre-tax income/(loss)	Pre-tax income/(loss)	$	(34)	$	87	NM		$	(50)	$	288	NM
Pre-tax income/(loss)
Pre-tax income/(loss)

Quarter ended ~~March~~December 31, 2023 compared with the quarter ended ~~March~~December 31, 2022

Net revenues of ~~$302~~$338 million ~~decreased 27%~~increased 15% and the pre-tax income was $3 million, a $19 million increase over the pre-tax loss ~~was $34~~of $16 million ~~compared with pre-tax income of $87 million for~~in the prior-year quarter.

Investment banking revenues ~~decreased $81~~increased $37 million, or ~~36%~~28%, ~~as activity levels in~~compared with the ~~current quarter were~~prior-year quarter. Market conditions improved compared with the prior-year quarter; however, market uncertainty continued to negatively ~~impacted by heightened market volatility and macroeconomic uncertainties which continue to dampen capital markets activity across the industry. Our~~impact industry-wide investment banking pipeline remains healthy and, in part, reflects the investments we have made over the past several years; however, continued market uncertainty could delay, or ultimately prevent, the closing of transactions, which could negatively impact our results.activity.

~~Brokerage revenues decreased $36~~Compensation-related expenses increased $25 million, or ~~22%~~12%, primarily due to ~~a decrease~~the increase in ~~fixed income brokerage~~ revenues, ~~resulting from decreased activity from depository institution clients due~~as well as an increase in compensation costs both to ~~challenging market conditions, partially offset by incremental revenues from SumRidge Partners, which was acquired on July 1, 2022. We expect~~support our fixed income brokerage revenues to continue to be negatively impacted by the challenging market conditions which have resulted in a decline in cash balances at many of our depository institution clients, decreasing their immediate demand for our productsgrowth and ~~services.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Compensation-related expenses decreased $22 million, or 9%, due to lower revenues, partially offset by incremental compensation expenses arising from our acquisition of SumRidge Partners, higher salaries, in part due to inflationary and market compensation pressures, and higher share-based compensation amortization resulting from production-related awards granted in prior periods which are amortized over the vesting period.annual cost increases, including salaries.

Non-compensation expenses ~~increased $32~~decreased $1 million, or 44%, primarily attributable to incremental expenses associated with SumRidge Partners, an increase in travel and event-related expenses from the relatively low prior-year levels, and higher professional fees.1%.

~~Six months ended March 31, 2023 compared with the six months ended March 31, 2022~~

~~Net revenues of $597 million decreased 42% and the pre-tax loss was $50 million compared with pre-tax income of $288 million for the prior-year period.~~

Investment banking revenues decreased $360 million, or 56%, compared with a strong prior-year period, as activity levels were negatively impacted in the current-year period by very different market conditions compared with the prior-year period, resulting from the aforementioned macroeconomic uncertainties impacting the industry.

Brokerage revenues decreased $61 million, or 19%, primarily due to a decrease in fixed income brokerage revenues as a result of the aforementioned challenging market conditions, partially offset by incremental revenues from SumRidge Partners.

Compensation-related expenses decreased $140 million, or 24%, primarily due to the decrease in revenues, partially offset by incremental expenses associated with SumRidge Partners, higher salaries, in part due to inflationary and market compensation pressures, and higher share-based compensation amortization resulting from production-related awards granted in prior periods which are amortized over the vesting period.

Non-compensation expenses increased $48 million, or 31%, primarily due to incremental expenses associated with SumRidge Partners, increased travel and event-related expenses and higher professional fees compared with the prior-year period.

6959


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

RESULTS OF OPERATIONS – ASSET MANAGEMENT

For an overview of our Asset Management segment operations as well as a description of the key factors impacting our Asset Management results of operations, refer to the information presented in “Item 1 - Business” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our ~~2022~~2023 Form 10-K.

Operating results




		Three months ended March 31,						Six months ended March 31,
$ in millions	$ in millions	2023		2022		% change		2023		2022		% change
$ in millions
$ in millions
Revenues:
Revenues:
Revenues:	Revenues:
Asset management and related administrative fees:	Asset management and related administrative fees:
Asset management and related administrative fees:
Asset management and related administrative fees:
Managed programs
Managed programs
Managed programs	Managed programs	$	140	$	149	(6)	%	$	274	$	300	(9)	%
Administration and other	Administration and other	66		77		(14)	%	129		153		(16)	%
Administration and other
Administration and other
Total asset management and related administrative fees
Total asset management and related administrative fees
Total asset management and related administrative fees	Total asset management and related administrative fees	206		226		(9)	%	403		453		(11)	%
Account and service fees	Account and service fees	6		6		—	%	11		12		(8)	%
Account and service fees
Account and service fees
All other
All other
All other	All other	4		2		100	%	9		5		80	%
Net revenues	Net revenues	216		234		(8)	%	423		470		(10)	%
Net revenues
Net revenues
Non-interest expenses:
Non-interest expenses:
Non-interest expenses:	Non-interest expenses:
Compensation, commissions and benefits	Compensation, commissions and benefits	52		47		11	%	99		93		6	%
Compensation, commissions and benefits
Compensation, commissions and benefits
Non-compensation expenses:
Non-compensation expenses:
Non-compensation expenses:	Non-compensation expenses:
Communications and information processing	Communications and information processing	14		14		—	%	28		26		8	%
Communications and information processing
Communications and information processing
Investment sub-advisory fees
Investment sub-advisory fees
Investment sub-advisory fees	Investment sub-advisory fees	34		39		(13)	%	68		76		(11)	%

All other	All other	34		31		10	%	66		65		2	%

All other

All other
Total non-compensation expenses
Total non-compensation expenses
Total non-compensation expenses	Total non-compensation expenses	82		84		(2)	%	162		167		(3)	%
Total non-interest expenses	Total non-interest expenses	134		131		2	%	261		260		—	%
Total non-interest expenses
Total non-interest expenses
Pre-tax income	Pre-tax income	$	82	$	103	(20)	%	$	162	$	210	(23)	%
Pre-tax income
Pre-tax income

Selected key metrics

Managed programs

Management fees recorded in our Asset Management segment are generally calculated as a percentage of the value of our fee-billable financial assets under management (“AUM”). These AUM include the portion of fee-based AUA in our PCG segment that is invested in programs overseen by our Asset Management segment (included in the “AMS” line of the following table), as well as retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage (collectively included in the ~~“Raymond~~Raymond James Investment ~~Management”~~Management (“RJIM”) line of the following table).

Revenues related to fee-based AUA in our PCG segment are shared by the PCG and Asset Management segments, the amount of which depends on whether or not clients are invested in assets that are in managed programs overseen by our Asset Management segment and the administrative services provided (see our “Management’s Discussion and Analysis - Results of Operations - Private Client Group” for more information). Our AUM in AMS are impacted by market fluctuations and net inflows or outflows of assets, including transfers between fee-based accounts and transaction-based accounts within our PCG segment.

Revenues earned by ~~Raymond James Investment Management~~RJIM for retail accounts managed on behalf of third-party institutions, institutional accounts and our proprietary mutual funds are recorded entirely in the Asset Management segment. Our AUM in ~~Raymond James Investment Management~~RJIM are impacted by market and investment performance and net inflows or outflows of assets.

Fees for our managed programs are generally collected quarterly. Approximately ~~65%~~70% of these fees are based on balances as of the beginning of the quarter (primarily in AMS), approximately 15% are based on balances as of the end of the quarter, and approximately ~~20%~~15% are based on average daily balances throughout the quarter.

7060


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Financial assets under management


$ in billions	$ in billions	March 31, 2023		December 31, 2022		September 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021
$ in billions
$ in billions
AMS (1)	AMS (1)	$	136.5	$	129.5	$	119.8	$	140.1	$	145.0	$	134.4
Raymond James Investment Management		69.4		67.4		64.2		64.0		68.9		67.8
AMS (1)
AMS (1)
RJIM
RJIM
RJIM
Subtotal financial assets under management	Subtotal financial assets under management	205.9		196.9		184.0		204.1		213.9		202.2
Less: Assets managed for affiliated entities		(11.5)		(10.9)		(10.2)		(10.4)		(10.7)		(10.3)
Subtotal financial assets under management
Subtotal financial assets under management
Less: Assets managed for affiliated entities (2)
Less: Assets managed for affiliated entities (2)
Less: Assets managed for affiliated entities (2)
Total financial assets under management	Total financial assets under management	$	194.4	$	186.0	$	173.8	$	193.7	$	203.2	$	191.9
Total financial assets under management
Total financial assets under management

(1)Represents the portion of our PCG segment fee-based AUA (as disclosed in “Assets in fee-based accounts” in the “Selected key metrics - PCG client asset balances” section of our “Management’s Discussion and Analysis - Results of Operations - Private Client Group”) that is invested in managed programs overseen by the Asset Management segment.

(2)Represents the portion of the AMS AUM that is managed by RJIM and, as a result, are included in both AMS and RJIM in the preceding table. This amount is removed in the calculation of “Total financial assets under management.”

Activity (including activity in assets managed for affiliated entities)


		Three months ended March 31,				Six months ended March 31,
				Three months ended December 31,
				Three months ended December 31,
				Three months ended December 31,
$ in billions	$ in billions	2023		2022		2023		2022		$ in billions	2023	2022
Financial assets under management at beginning of period	Financial assets under management at beginning of period	$	196.9	$	213.9	$	184.0	$	202.2

Raymond James Investment Management - net inflows/(outflows)		1.1		(0.8)		1.7		(1.2)
RJIM - net inflows/(outflows)
RJIM - net inflows/(outflows)
RJIM - net inflows/(outflows)
AMS - net inflows	AMS - net inflows	1.7		3.5		2.7		7.0
Net market appreciation/(depreciation) in asset values		6.2		(12.5)		17.5		(3.9)
Net market appreciation in asset values
Financial assets under management at end of period	Financial assets under management at end of period	$	205.9	$	204.1	$	205.9	$	204.1

AMS

See “Management’s Discussion and Analysis - Results of Operations - Private Client Group” for further information about our retail client assets, including those fee-based assets invested in programs managed by AMS.

~~Raymond James Investment Management~~RJIM

Assets managed by ~~Raymond James Investment Management~~RJIM include assets managed by our subsidiaries: Eagle Asset Management, Scout Investments, Reams Asset Management (a division of Scout Investments), ClariVest Asset Management, Cougar Global Investments, and Chartwell Investment Partners (“Chartwell”)~~, which was acquired on June 1, 2022 in connection with our acquisition of TriState Capital.~~. The following table presents ~~Raymond James Investment Management’s~~RJIM’s AUM by objective, excluding assets for which it does not exercise discretion, as well as the approximate average client fee rate earned on such assets.

As of March 31, 2023

As of December 31, 2023

$ in billions

AUM

Average fee rate

Equity

24.6

0.56

Equity

Fixed income

36.7

0.20

Balanced

8.1

0.33

Balanced

Total financial assets under management

69.4

0.34

Total financial assets under management


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Non-discretionary asset-based programs

The following table includes assets held in certain non-discretionary asset-based programs for which the Asset Management segment does not exercise discretion but provides other services such as administrative support (including for affiliated entities). and investment advice. The vast majority of these assets are also included in our PCG segment fee-based AUA (as disclosed in “Assets in fee-based accounts” in the “Selected key metrics - PCG client asset balances” section of our “Management’s Discussion and Analysis - Results of Operations - Private Client Group”).


$ in billions	December 31, 2023		September 30, 2023		December 31, 2022		September 30, 2022
Total assets	$	431.4	$	391.1	$	355.6	$	329.2

The increase in these assets as of December 31, 2023 compared with September 30, 2023 was primarily due to market appreciation, successful financial advisor recruiting and retention, and the continued trend of clients moving to fee-based accounts from transaction-based accounts. Administrative fees associated with these programs are predominantly based on balances at the beginning of the quarter.

$ in billions March 31,
2023 December 31,
2022 September 30,
2022 March 31,
2022 December 31,
2021 September 30,
2021
Total assets $ 378.7 $ 355.6 $ 329.2 $ 379.7 $ 392.4 $ 365.3

The increase in assets as of March 31, 2023 compared with December 31, 2022 and September 30, 2022 was largely due to equity market appreciation and continued growth in the PCG segment. The slight decrease in assets compared to March 31, 2022 was due to declines in the equity market since such time, offset by continued growth in the PCG segment and the favorable impact of our June 1, 2022 acquisition of Chartwell.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Raymond James Trust

The following table includes assets held in asset-based programs in Raymond James Trust, N.A. (including those managed for affiliated entities).


$ in billions	$ in billions	March 31, 2023		December 31, 2022		September 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021
$ in billions
$ in billions														December 31, 2023	September 30, 2023	December 31, 2022	September 30, 2022
Total assets	Total assets	$	8.2	$	7.8	$	7.3	$	8.4	$	8.8	$	8.1

Fees earned on trust services are primarily reported within “Asset management and related administrative fees” on the Condensed Consolidated Statements of Income and Comprehensive Income.

Quarter ended ~~March~~December 31, 2023 compared with the quarter ended ~~March~~December 31, 2022

Net revenues of ~~$216~~$235 million ~~decreased 8%~~increased 14% and pre-tax income of ~~$82~~$93 million ~~decreased 20%~~increased 16%.

Asset management and related administrative fees ~~decreased $20~~increased $27 million, or 9%14%, driven by ~~a lower~~higher beginning ~~balance~~balances of assets in non-discretionary asset-based programs and financial assets under management at AMS, as well as ~~lower~~higher average financial assets under management at ~~Raymond James Investment Management (excluding Chartwell),~~RJIM, in each case primarily due to market-driven ~~depreciation~~appreciation in asset values. These declines were partially offset by incremental revenues arising from the acquisition of Chartwell. We expect the increase in financial assets under management and assets in non-discretionary asset-based programs as of March 31, 2023 compared with December 31, 2022, which occurred due to equity market appreciation and net inflows during the quarter, to positively affect our fiscal third quarter of 2023, as the majority of our asset management and related administrative fees are billed based on balances as of the beginning of the quarter.

Compensation expenses increased $5$6 million, or 13%, including an increase in compensation costs both to support our growth and annual cost increases, including salaries. Non-compensation expenses increased $9 million, or 11%, ~~primarily~~largely due to ~~the acquisition of Chartwell. Non-compensation expenses decreased $2 million, or 2%, primarily due to lower~~higher investment sub-advisory fees, resulting from the ~~decrease~~increase in the beginning balance of assets under management in sub-advised ~~programs, partially offset by incremental expenses resulting from the Chartwell acquisition.~~

~~Six months ended March 31, 2023 compared with the six months ended March 31, 2022~~

~~Net revenues of $423 million decreased 10% and pre-tax income of $162 million decreased 23%.~~

Asset management and related administrative fees decreased $50 million, or 11%, driven by lower assets in non-discretionary asset-based programs and financial assets under management at AMS at the beginning of each of the current-year quarterly billing periods compared with the prior-year quarterly billing periods, as well as lower average financial assets under management at Raymond James Investment Management (excluding Chartwell), in each case primarily due to market-driven depreciation in asset values. These declines were partially offset by incremental revenues arising from the acquisition of Chartwell.

Compensation expenses increased $6 million, or 6%, primarily due to the acquisition of Chartwell. Non-compensation expenses decreased $5 million, or 3% due to lower investment sub-advisory fees, resulting from the decrease in assets under management in sub-advised programs, partially offset by incremental expenses resulting from the Chartwell acquisition.

programs.

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RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

RESULTS OF OPERATIONS – BANK

For an overview of our Bank segment operations, as well as a description of the key factors impacting our Bank segment results of operations, refer to the information presented in “Item 1 - Business” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our ~~2022~~2023 Form 10-K. ~~Our Bank segment results include the results of TriState Capital Bank since the acquisition date of June 1, 2022.~~

Operating results


		Three months ended March 31,						Six months ended March 31,
		Three months ended December 31,
		Three months ended December 31,
		Three months ended December 31,
$ in millions
$ in millions
$ in millions	$ in millions	2023		2022		% change		2023		2022		% change
Revenues:	Revenues:
Revenues:
Revenues:
Interest income
Interest income
Interest income	Interest income	$	749	$	199	276	%	$	1,425	$	386	269	%
Interest expense	Interest expense	(219)		(10)		2,090	%	(404)		(20)		1,920	%
Interest expense
Interest expense
Net interest income
Net interest income
Net interest income	Net interest income	530		189		180	%	1,021		366		179	%
All other	All other	10		8		25	%	27		14		93	%
All other
All other
Net revenues
Net revenues
Net revenues	Net revenues	540		197		174	%	1,048		380		176	%
Non-interest expenses:	Non-interest expenses:
Non-interest expenses:
Non-interest expenses:
Compensation and benefits
Compensation and benefits
Compensation and benefits	Compensation and benefits	48		14		243	%	88		27		226	%
Non-compensation expenses:	Non-compensation expenses:
Non-compensation expenses:
Non-compensation expenses:
Bank loan provision for credit losses	Bank loan provision for credit losses	28		21		33	%	42		10		320	%
Bank loan provision for credit losses
Bank loan provision for credit losses
RJBDP fees to PCG
RJBDP fees to PCG
RJBDP fees to PCG	RJBDP fees to PCG	311		49		535	%	579		99		485	%

All other	All other	62		30		107	%	112		59		90	%

All other

All other
Total non-compensation expenses
Total non-compensation expenses
Total non-compensation expenses	Total non-compensation expenses	401		100		301	%	733		168		336	%
Total non-interest expenses	Total non-interest expenses	449		114		294	%	821		195		321	%
Total non-interest expenses
Total non-interest expenses
Pre-tax income	Pre-tax income	$	91	$	83	10	%	$	227	$	185	23	%
Pre-tax income
Pre-tax income

Quarter ended ~~March~~December 31, 2023 compared with the quarter ended ~~March~~December 31, 2022

Net revenues of ~~$540~~$441 million ~~increased 174% and~~decreased 13%, while pre-tax income of ~~$91~~$92 million ~~increased 10%~~decreased 32%.

Net interest income ~~increased $341~~decreased $65 million, or ~~180%~~13%, primarily due to increased interest expense resulting from a higher-cost mix of deposits, as balances from the ~~significant~~ESP, which launched in March 2023, replaced a portion of lower-cost RJBDP cash sweep balances. The increase in interest expense was partially offset by an increase in interest income due to higher short-term interest rates and higher average interest-earning ~~assets at Raymond James Bank, as well as incremental net interest income from~~asset balances during the June 1, 2022 acquisition of TriState Capital Bank. The increase in average interest-earning assets at Raymond James Bank was primarily driven by growth in the bank loan portfolio and, to a lesser extent, higher average cash balances and available-for-sale securities.current quarter. The net interest margin ~~increased~~decreased to ~~3.63%~~2.74% from ~~2.01%~~3.36% for the prior-year quarter. We anticipate that the Bank segment net interest income and net interest margin will decline during our fiscal third quarter of 2023 due to the higher level of cash balances held by the Bank segment as a result of recent market volatility, as well as the impact from higher-cost diversified funding sources, including the Enhanced Savings Program launched to PCG clients in March 2023.

The bank loan provision for credit losses was ~~$28~~$12 million for the current quarter, compared with ~~$21~~$14 million for the prior-year quarter. The current quarter provision primarily reflected the impacts of charge-offs of certain loans during the quarter, loan downgrades in the CRE and C&I loan portfolios, and additional volatility in the macroeconomic outlook. The prior-year quarter provision for credit losses was primarily due to loan growth.

~~Compensation expenses increased $34 million, or 243%, primarily due to incremental expenses of TriState Capital Bank.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Non-compensation expenses, excluding the bank loan provision for credit losses, increased $294 million, or 372%, primarily due to an increase in RJBDP fees paid to PCG and incremental expenses of TriState Capital Bank. RJBDP fees to PCG increased $262 million, or 535%, due to an increase in the market-based servicing fee incurred by the Bank segment for the administrative services provided by the PCG segment for such deposit balances, as well as an increase in client cash balances swept to our Bank segment as part of the RJBDP. As described in “Management’s Discussion and Analysis - Results of Operations - Private Client Group”, our Bank segment incurs servicing fee expense, reflected as revenues in our PCG segment, for the administrative services provided related to our clients’ deposits that are swept to our Bank segment as part of the RJBDP. These servicing fees are variable in nature and fluctuate based on client cash balances in the program, as well as the level of short-term interest rates and the interest paid to clients on balances in the RJBDP. As the yield from third-party banks in the RJBDP program continues to rise, the rate the Bank segment incurs on RJBDP deposits will also increase as it reflects a market rate for such deposits. These Bank segment fees and the revenues earned by the PCG segment are eliminated in consolidation.

~~Six months ended March 31, 2023 compared with the six months ended March 31, 2022~~

~~Net revenues of $1.05 billion increased 176%, while pre-tax income of $227 million increased 23%.~~

Net interest income increased $655 million, or 179%, due to the significant increase in short-term interest rates and higher average interest-earning assets at Raymond James Bank, as well as incremental net interest income from the acquisition of TriState Capital Bank. The increase in average interest-earning assets at Raymond James Bank was primarily driven by higher average bank loans and an increase in average available-for-sale securities. The net interest margin increased to 3.51% from 1.97% for the prior-year period.

The bank loan provision for credit losses ~~was $42 million~~ for the ~~current-year period, compared with $10 million for~~current quarter primarily reflected the ~~prior-year period.~~impacts of specific reserves in our C&I and CRE portfolios, loan downgrades, and charge-offs, partially offset by the favorable impact of loan repayments and sales, which had a larger impact on the current quarter expense than provisions on new loans. The ~~current year~~ provision for credit losses for the prior-year quarter primarily reflected the impact of a weaker macroeconomic outlook ~~net charge-offs,~~at that time, primarily on the residential mortgage portfolio, and the impact of loan growth during the ~~period. The prior-year period provision~~quarter.

Compensation expenses increased $3 million, or 8%, primarily ~~reflected the impact of loan growth.~~due to increased compensation costs both to support growth and annual cost increases, including salaries.

Non-compensation expenses, excluding the bank loan provision for credit losses, ~~increased $533~~decreased $24 million, or ~~337%~~8%, primarily due to ~~an increase~~a decrease in RJBDP fees paid to PCG ~~and incremental expenses associated with TriState Capital Bank.~~resulting from the aforementioned decline in RJBDP ~~fees~~balances swept to ~~PCG increased $480 million, or 485%, due to a significant increase in short-term interest rates as well as~~the Bank segment, partially offset by an increase in ~~client cash swept to our Bank segment as part of the RJBDP.~~rates for such balances. These Bank segment fees and the related revenues earned by the PCG segment are eliminated in ~~consolidation.~~

consolidation (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Private Client Group” for further information about these servicing fees). Offsetting this decline was an increase in expenses related to deposits, including a special assessment enacted during the quarter by the FDIC to recover losses to its Deposit Insurance Fund, as well as expenses related to the ESP and certificates of deposit issuances during the quarter. The impact of the special assessment was $9 million of incremental expense for the three months ended December 31, 2023.

7463


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES ~~Management’s Discussion and Analysis~~ Management’s Discussion and Analysis						Index

RESULTS OF OPERATIONS – OTHER

This segment includes ~~our private equity investments,~~ interest income on certain corporate cash balances, our private equity investments, which predominantly consist of investments in third-party funds, certain ~~costs incurred in acquisition activities,~~other corporate investing activity, and certain corporate overhead costs of RJF that are not allocated to other segments, including the interest costs on our public ~~debt.~~debt, certain provisions for legal and regulatory matters, and certain acquisition-related expenses. For an overview of our Other segment operations, refer to the information presented in “Item 1 - Business” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our ~~2022~~2023 Form 10-K.

Operating results


		Three months ended March 31,						Six months ended March 31,
		Three months ended December 31,
		Three months ended December 31,
		Three months ended December 31,
$ in millions
$ in millions
$ in millions	$ in millions	2023		2022		% change		2023		2022		% change
Revenues:	Revenues:
Revenues:
Revenues:
Interest income	Interest income	$	36	$	3	1,100	%	$	66	$	4	1,550	%
Net gains/(losses) on private equity investments		1		(2)		NM		3		3		—	%
Interest income
Interest income
All other
All other
All other	All other	—		5		(100)	%	1		7		(86)	%
Total revenues	Total revenues	37		6		517	%	70		14		400	%
Total revenues
Total revenues
Interest expense
Interest expense
Interest expense	Interest expense	(27)		(24)		13	%	(51)		(47)		9	%
Net revenues	Net revenues	10		(18)		NM		19		(33)		NM
Net revenues
Net revenues
Non-interest expenses:	Non-interest expenses:
Compensation and other		33		35		(6)	%	56		67		(16)	%
Non-interest expenses:
Non-interest expenses:
Compensation and benefits
Compensation and benefits
Compensation and benefits
Insurance settlement received
Insurance settlement received
Insurance settlement received	Insurance settlement received	—		—		—	%	(32)		—		NM

All other

All other

All other
Total non-interest expenses	Total non-interest expenses	33		35		(6)	%	24		67		(64)	%
Pre-tax income/(loss)		$	(23)	$	(53)	57	%	$	(5)	$	(100)	95	%
Total non-interest expenses
Total non-interest expenses
Pre-tax income
Pre-tax income
Pre-tax income

Quarter ended ~~March~~December 31, 2023 compared with the quarter ended ~~March~~December 31, 2022

Pre-tax ~~loss~~income was ~~$23~~$3 million, a decrease of 83% compared with a pre-tax ~~loss~~income of ~~$53~~$18 million for the prior-year quarter.

Net revenues increased ~~$28~~$17 million primarily due to an increase in interest income earned as a result of higher short-term interest rates applicable to our corporate cash balances.

Non-interest expenses ~~decreased $2~~increased $32 million, ~~primarily due to a decrease in acquisition-related expenses, partially offset by an increase in compensation expenses.~~

~~Six months ended March 31, 2023 compared with the six months ended March 31, 2022~~

~~The pre-tax loss was $5 million compared with a pre-tax loss of $100 million in the prior-year period.~~

Net revenues increased $52 million, primarily due to an increase in interest income earned as a result of higher short-term interest rates applicable to our corporate cash balances, partially offset by an increase in interest expense due to the subordinated notes assumed as part of our acquisition of TriState Capital in June 2022.

~~Non-interest expenses decreased $43 million, or 64%,~~ primarily due to a $32 million insurance settlement received during the ~~current-year period~~prior-year quarter related to a previously settled ~~litigation~~legal matter, which ~~was reflected as an offset to Other expenses, as well as a decrease~~did not recur in ~~acquisition-related expenses. These decreases were partially offset by an increase in compensation expenses.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

the current-year quarter.

STATEMENT OF FINANCIAL CONDITION ANALYSIS

The assets on our Condensed Consolidated Statements of Financial Condition consisted primarily of cash and cash equivalents, assets segregated for regulatory purposes and restricted cash (primarily segregated for the benefit of clients), receivables including bank loans, financial instruments held either for trading purposes or as investments, goodwill and identifiable intangible assets, and other assets. A significant portion of our assets were liquid in nature, providing us with flexibility in financing our business.

Total assets of ~~$79.18~~$80.13 billion as of ~~March~~December 31, 2023 were $1.77 billion, or 2%, ~~less~~greater than our total assets as of September 30, ~~2022.~~2023. Cash and cash equivalents increased $893 million primarily driven by an increase in cash held at our bank subsidiaries, largely resulting from an increase in bank deposits during the period. Assets segregated for regulatory purposes and restricted cash ~~decreased $3.78 billion,~~increased $496 million, primarily due to ~~a decrease~~an increase in client cash ~~sweep~~ balances in our broker-dealer subsidiaries, which resulted in ~~a decline~~an increase in brokerage client ~~cash held in our CIP~~payables and a corresponding ~~decline~~increase in segregated assets. Brokerage client receivables, collateralized agreements, and trading assets also decreased $359 million, $325 million, and $277 million, respectively, compared with September 30, 2022. Partially offsetting these decreases was a $2.49 billion increase in cash and cash equivalents, driven by an increase in bank deposits, as well as an increase in bankBank loans, net ~~of $444~~increased $407 million primarily related to increases in corporate and residential mortgage ~~loans, partially offset by a decline in securities-based~~ loans.

As of ~~March~~December 31, 2023, our total liabilities of ~~$69.21~~$69.35 billion were ~~$2.31~~$1.18 billion, or 3%2%, ~~less~~greater than our total liabilities as of September 30, ~~2022.~~2023. Bank deposits increased $1.19 billion, primarily driven by an increase in ESP balances. Brokerage client payables ~~decreased $4.60 billion~~increased $346 million, primarily related to the aforementioned increase in client cash balances in our broker-dealer subsidiaries as of December 31, 2023. These increases were partially offset by a decrease in ~~CIP balances as of March 31, 2023. Accrued~~accrued compensation, commissions, and benefits ~~decreased $326~~of $418 million ~~primarily~~ due to the payment of prior-year bonuses. These decreases were partially offset by an increase in bank deposits of $2.87 billion, primarily due to the launch of the Enhanced Savings Program to PCG clients in March 2023, which raised $2.75 billion of depositsbonuses during the ~~period ended March 31, 2023, and an increase in other borrowings of $359 million as a result of a net increase in FHLB borrowings in the Bank segment during our fiscal second quarter of 2023.~~quarter.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and capital are essential to our business. The primary goal of our liquidity management activities is to ensure adequate funding and liquidity to conduct our business over a range of economic and market environments, including times of broader industry or market liquidity stress events. In times of market stress or uncertainty, we generally maintain higher levels of capital and liquidity, including increased cash levels in our Bank segment, to ensure we have adequate funding to support our ~~business.~~business and meet our clients’ needs. We seek to manage capital levels to support execution of our business strategy, provide financial strength to our subsidiaries, and maintain sustained access to the capital markets, while at the same time meeting our regulatory capital requirements and conservative internal management targets.

Liquidity and capital resources are provided primarily through our business operations and financing activities. ~~Financing~~Our business operations generate substantially all of their own liquidity and funding needs. We have a contingency funding plan which would guide our actions if one or more of our businesses were to experience disruptions from normal funding and liquidity sources. These actions include reallocating client cash balances in the RJBDP from third-party banks to our bank subsidiaries thereby bringing those deposits onto our Consolidated Statements of Financial Condition, increasing our FHLB borrowings at our bank subsidiaries, accessing committed and uncommitted lines of credit at the parent or certain operating subsidiaries, accessing capital markets or, in certain circumstances, accessing certain borrowings from the Federal Reserve. We also have the ability to create additional sources of funding by developing new products to meet the financial needs of our clients, such as the ESP deposit offering launched to PCG clients in fiscal 2023. With each of our deposit offerings, we work to obtain sufficient liquidity to support our business operations while also maintaining a high level of FDIC insurance coverage for our clients.

Our financing activities could also include bank borrowings, collateralized financing arrangements, or additional capital raising activities under our “universal” shelf registration statement. We believe our existing assets, most of which are liquid in nature, together with funds generated from operations and available from committed and uncommitted financing facilities, provide adequate funds for continuing operations at current levels of activity in the short-term. We also believe that we will be able to continue to meet our long-term ~~cash~~funding and liquidity requirements due to our strong financial position and ability to access capital from financial markets.

Liquidity and capital management

Senior management establishes our liquidity and capital management frameworks. Our liquidity and capital management frameworks are overseen by ~~the RJF~~our Asset and Liability Committee, a senior management committee that develops and executes strategies and policies to manage our liquidity risk and interest rate risk, as well as provides oversight over the firm’s investments. Our liquidity management framework is designed to ensure we have a sufficient amount of ~~financing,~~funding, even when funding markets experience stress. We manage the maturities and diversity of our funding across products and seek to maintain a diversified funding profile with an appropriate tenor, taking into consideration the characteristics and liquidity profile of our ~~assets.~~assets (e.g., the maturities of our available-for-sale securities portfolio). The liquidity management framework includes senior management’s review of short- and long-term cash flow forecasts, review of ~~capital~~necessary expenditures, monitoring of the availability of alternative sources of financing, and daily monitoring of liquidity in our significant subsidiaries. Our decisions on the allocation of resources to our business units consider, among other factors, projected profitability, cash flow, risk, ~~and~~ future liquidity ~~needs.~~needs, and required capital levels. Our treasury department assists in evaluating, monitoring and controlling the impact that our business activities have on our financial condition and liquidity, and also maintains our relationships with various lenders. The objective of our liquidity management framework is to support the successful execution of our business strategies while ensuring ongoing and sufficient ~~liquidity.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion~~funding and ~~Analysis~~

liquidity.

Our capital planning and capital risk management processes are governed by the Capital Planning Committee (“CPC”), a senior management committee that provides oversight on our capital planning and ensures that our strategic planning and risk management processes are integrated into the capital planning process. The CPC meets at least quarterly to review key metrics related to the firm’s capital, such as debt structure and capital ratios; to analyze potential and emerging risks to capital; to oversee our annual firmwide capital stress test; and to propose capital actions to the Board of Directors, such as declaring dividends, repurchasing securities, and raising capital. To ensure that we have sufficient capital to absorb unanticipated losses, the firm adheres to capital risk appetite statements and tolerances set in excess of regulatory minimums, which are established by the CPC and approved by the Board of Directors. We conduct enterprise-wide capital stress testing to ensure that we maintain adequate capital to adhere to our established tolerances under multiple scenarios, including a stressed scenario.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Capital structure

Common equity (i.e., common stock, additional paid-in capital, and retained earnings) is the primary component of our capital structure. Common equity allows for the absorption of losses on an ongoing basis and for the conservation of resources during stress periods, as it provides us with discretion on the amount and timing of dividends and other capital actions. Information about our common equity is included in the Condensed Consolidated Statements of Financial Condition, the Condensed Consolidated Statements of Changes in Shareholders’ Equity, and Note 1716 of this Form 10-Q.

Under regulatory capital rules applicable to us as a bank holding company, we 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, 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. See Note 2120 for further information about our regulatory capital and related capital ratios.

We have classified all of our investments in debt securities as available-for-sale and have not classified any of our investments in debt securities as held-to-maturity. Accordingly, we account for our available-for-sale securities at fair value at each reporting date, with unrealized gains and losses, net of tax, included in AOCI. Current Basel III rules permit us to make an election to exclude most components of AOCI when calculating CET1, tier 1 capital, and total capital. We have elected the AOCI opt-out for regulatory capital purposes and therefore exclude certain elements of AOCI, including gains/losses on our available-for-sale portfolio, from our capital calculations.

~~Recent events impacting the financial services industry, including the failure of certain banks in the industry, may~~On July 27, 2023, U.S. banking regulators issued proposed rules that, if enacted, would result in ~~a change~~changes to regulations applicable to bank holding companies, including higher capital requirements and eliminating the AOCI opt-out election, which could ~~negatively impact~~reduce our regulatory capital ratios in the future. ~~In addition, potential changes to~~Under the proposed rule, if enacted, there would be a three-year transition period for the elimination of the AOCI opt-out ~~election~~election. We are evaluating these proposals, most of which would apply to us if our average total consolidated assets for four consecutive calendar quarters exceeded $100 billion, to assess their potential impact ~~future regulatory capital calculations.~~to our current businesses and strategies.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

The following table presents the components of RJF’s regulatory capital used to calculate the aforementioned regulatory capital ratios.


$ in millions	$ in millions	March 31, 2023		September 30, 2022		$ in millions	December 31, 2023	September 30, 2023
Common equity tier 1 capital/Tier 1 capital	Common equity tier 1 capital/Tier 1 capital
Common stock and related additional paid-in capital
Common stock and related additional paid-in capital
Common stock and related additional paid-in capital	Common stock and related additional paid-in capital	$	3,037	$	2,989
Retained earnings	Retained earnings	9,590		8,843
Treasury stock	Treasury stock	(1,954)		(1,512)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(798)		(982)
Less: Goodwill and identifiable intangible assets, net of related deferred tax liabilities	Less: Goodwill and identifiable intangible assets, net of related deferred tax liabilities	(1,804)		(1,805)
Other adjustments	Other adjustments	717		847
Common equity tier 1 capital	Common equity tier 1 capital	8,788		8,380
Additional tier 1 capital (preferred equity of $120, net of $5 of other items)		115		100
Preferred stock
Less: Tier 1 capital deductions
Tier 1 capital	Tier 1 capital	8,903		8,480
Tier 2 capital	Tier 2 capital
Tier 2 capital instruments plus related surplus		100		100
Qualifying subordinated debt
Qualifying subordinated debt
Qualifying subordinated debt
Qualifying allowances for credit losses	Qualifying allowances for credit losses	471		451
Tier 2 capital	Tier 2 capital	571		551
Total capital	Total capital	$	9,474	$	9,031


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

The following table presents RJF’s risk-weighted assets by exposure type used to calculate the aforementioned regulatory capital ratios.


$ in millions	$ in millions	March 31, 2023		September 30, 2022		$ in millions	December 31, 2023	September 30, 2023
On-balance sheet assets:	On-balance sheet assets:
Corporate exposures
Corporate exposures
Corporate exposures	Corporate exposures	$	20,597	$	20,147
Exposures to sovereign and government-sponsored entities (1)	Exposures to sovereign and government-sponsored entities (1)	1,952		2,002
Exposures to depository institutions, foreign banks, and credit unions	Exposures to depository institutions, foreign banks, and credit unions	2,062		3,003
Exposures to public-sector entities	Exposures to public-sector entities	774		696
Residential mortgage exposures	Residential mortgage exposures	4,087		3,732
Statutory multifamily mortgage exposures		92		71
Statutory multi-family mortgage exposures
High volatility commercial real estate exposures	High volatility commercial real estate exposures	126		128
Past due loans	Past due loans	149		110
Equity exposures	Equity exposures	525		445
Securitization exposures	Securitization exposures	133		129
Other assets	Other assets	7,868		7,325
Off-balance sheet:	Off-balance sheet:
Standby letters of credit	Standby letters of credit	79		62
Standby letters of credit
Standby letters of credit
Commitments with original maturity of one year or less	Commitments with original maturity of one year or less	121		98
Commitments with original maturity greater than one year	Commitments with original maturity greater than one year	2,549		2,437
Over-the-counter derivatives	Over-the-counter derivatives	235		305

Other off-balance sheet items	Other off-balance sheet items	250		423
Other off-balance sheet items
Other off-balance sheet items
Market risk-weighted assets	Market risk-weighted assets	2,624		3,063
Total standardized risk-weighted assets	Total standardized risk-weighted assets	$	44,223	$	44,176

(1)~~RJF’s exposure~~Exposure is predominantly to the U.S. government and its agencies.

Cash flows

Cash and cash equivalents (excluding amounts segregated for regulatory purposes and restricted cash) of ~~$8.66~~$10.21 billion at ~~March~~December 31, 2023 increased ~~$2.49 billion~~$893 million compared with September 30, ~~2022.~~2023. The increase in cash and cash equivalents primarily resulted from an increase in bank deposits ~~including $2.75 billion of deposits from the launch of our Enhanced Savings Program to PCG clients in March 2023, as well as~~and net ~~proceeds from additional FHLB advances~~income earned during the ~~period,~~period. These increases were partially offset by payments of prior-year bonuses, purchases of bank loans, common stock repurchases and dividends ~~investments in bank loans~~paid on our common and ~~available-for-sale securities, and~~preferred stock during the ~~payment of prior-year bonuses.~~three months ended December 31, 2023.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Sources of liquidity

Approximately ~~$1.83~~$2.08 billion of our total ~~March~~December 31, 2023 cash and cash equivalents was RJF corporate cash, which included the cash held at the parent company, ~~which included~~as well as cash it loaned to RJ&A. As of ~~March~~December 31, 2023, RJF had loaned ~~$1.16~~$1.38 billion to RJ&A (such amount is included in the RJ&A cash balance in the following table), which RJ&A has invested on behalf of RJF in cash and cash equivalents or otherwise deployed in its normal business activities.

The following table presents our holdings of cash and cash equivalents.


$ in millions	~~March~~December 31, 2023
RJF	$	~~692~~732
TriState Capital Bank	3,765
Raymond James Bank	~~2,581~~2,295
~~TriState Capital Bank~~	~~2,401~~
RJ&A	~~1,639~~1,961
Raymond James Ltd. (“RJ Ltd.”)	~~502~~548
~~Raymond James Capital Services, LLC~~	~~179~~
~~Charles Stanley Group Limited~~	~~131~~
Raymond James Financial Services, Inc.	~~121~~186
Charles Stanley Group Limited (“Charles Stanley”)	149
Raymond James Trust Company of New Hampshire	94100
Raymond James Investment Management	5795
Raymond James Capital Services, LLC	65
Other subsidiaries	~~266~~310
Total cash and cash equivalents	$	~~8,663~~10,206

Due to recent market volatility, we maintained a higher level of cash balances at Raymond James Bank and TriState Capital Bank as of March 31, 2023 compared with more recent periods as part of our liquidity management practices.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

RJF maintained depository accounts at Raymond James Bank and TriState Capital Bank totaling ~~$275~~$286 million as of ~~March~~December 31, 2023. The portion of this total that was available on demand without restrictions, which amounted to ~~$234~~$244 million as of ~~March~~December 31, 2023, is reflected in the RJF cash balance and excluded from Raymond James Bank’s cash balance in the preceding table.

A large portion of the cash and cash equivalents balances at our non-U.S. subsidiaries, including RJ Ltd., and Charles Stanley, as of ~~March~~December 31, 2023 was held to meet regulatory requirements and was not available for use by the parent.

In addition to the cash balances described, we have various other potential sources of cash available to the parent company from subsidiaries, as described in the following section.

Liquidity available from subsidiaries

Liquidity is principally available to RJF from RJ&A and Raymond James Bank.

Certain of our broker-dealer subsidiaries are subject to the requirements of the Uniform Net Capital Rule (Rule 15c3-1) under the Securities and Exchange Act of 1934. As a member firm of the Financial Industry Regulatory Authority (“FINRA”), RJ&A is subject to FINRA’s capital requirements, which are substantially the same as Rule 15c3-1. Rule 15c3-1 provides for an “alternative net capital requirement,” which RJ&A has elected. Regulations require that minimum net capital, as defined, be equal to the greater of $1.5 million or 2% of aggregate debit items arising from client balances. In addition, covenants in RJ&A’s committed financing facilities require its net capital to be a minimum of 10% of aggregate debit items. At ~~March~~December 31, 2023, RJ&A significantly exceeded the minimum regulatory requirements, the covenants in its financing arrangements pertaining to net capital, as well as its internally-targeted net capital tolerances. FINRA may impose certain restrictions, such as restricting withdrawals of equity capital, if a member firm were to fall below a certain threshold or fail to meet minimum net capital requirements which may result in RJ&A limiting dividends it would otherwise remit to RJF. We evaluate regulatory requirements, loan covenants and certain internal tolerances when determining the amount of liquidity available to RJF from RJ&A.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Raymond James Bank may pay dividends to RJF without prior approval of its regulator as long as the dividends do not exceed the sum of its current calendar year and the previous two calendar years’ retained net income, and it maintains its targeted regulatory capital ratios. Dividends may be limited to the extent that capital is needed to support balance sheet growth or as part of our liquidity and capital management activities.

Although we have liquidity available to us from our other subsidiaries, the available amounts may not be as significant as those previously described and, in certain instances, may be subject to regulatory requirements.

Borrowings and financing arrangements

Financing arrangements

We have various financing arrangements in place with third-party lenders that allow us the flexibility to borrow funds on a secured or unsecured basis to meet our liquidity needs. We generally utilize these financing arrangements to finance a portion of our fixed income trading instruments held by RJ&A or for cash management purposes. Our ability to borrow under these arrangements is dependent upon compliance with the conditions in our various loan agreements and, in the case of secured borrowings, collateral eligibility requirements.

As of ~~March~~December 31, 2023, RJF and RJ&A had the ability to borrow under our ~~$500~~$750 million ~~revolving credit facility agreement (the “Credit Facility”),~~Credit Facility, a committed unsecured line of credit; however, we had no such borrowings outstanding under this facility as of ~~March~~December 31, 2023. See ~~our discussion of the Credit Facility in~~ Note 1613 of the Notes to ~~the~~Condensed Consolidated Financial Statements of ~~our 2022~~this Form ~~10-K~~10-Q for additional ~~details on the~~information regarding our Credit Facility. In April 2023, we amended our Credit Facility, increasing the borrowing capacity to $750 million, extending the term through April 2028, adding the secured overnight financing rate (“SOFR”) as an alternative reference rate, decreasing our variable rate facility fee, and removing the previous $300 million sublimit for RJF.

In addition to our Credit Facility, we have various uncommitted financing arrangements with third-party lenders, which are in the form of secured lines of credit, secured bilateral ~~or tri-party~~ repurchase agreements, or unsecured lines of credit. Our uncommitted secured financing arrangements generally require us to post collateral in excess of the amount borrowed and are generally collateralized by RJ&A-owned securities or by securities that we have received as collateral under reverse repurchase agreements (i.e., securities purchased under agreements to resell). As of ~~March~~December 31, 2023, we had outstanding borrowings under ~~one~~two uncommitted secured borrowing ~~arrangement~~arrangements out of a total of 1312 uncommitted financing arrangements ~~(nine~~(eight uncommitted secured and four uncommitted unsecured). However, lenders are under no contractual obligation to lend to us under uncommitted credit facilities.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Our borrowings on uncommitted financing arrangements, which were in the form of repurchase agreements in RJ&A, were included in “Collateralized financings” on our Condensed Consolidated Statements of Financial Condition. The average daily balance outstanding during the five most recent quarters, the maximum month-end balance outstanding during the quarter and the period-end balances for repurchase agreements and reverse repurchase agreements are detailed in the following table.


		Repurchase transactions						Reverse repurchase transactions							Repurchase transactions			Reverse repurchase transactions
For the quarter ended: ($ in millions)	For the quarter ended: ($ in millions)	Average daily balance outstanding		Maximum month-end balance outstanding during the quarter		End of period balance outstanding		Average daily balance outstanding		Maximum month-end balance outstanding during the quarter		End of period balance outstanding		For the quarter ended: ($ in millions)	Average daily balance outstanding	Maximum month-end balance outstanding during the quarter	End of period balance outstanding		Average daily balance outstanding	Maximum month-end balance outstanding during the quarter	End of period balance outstanding
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023	March 31, 2023	$	174	$	223	$	150	$	236	$	310	$	167
December 31, 2022	December 31, 2022	$	245	$	257	$	150	$	288	$	306	$	156
September 30, 2022		$	196	$	294	$	294	$	249	$	367	$	367
June 30, 2022		$	203	$	276	$	100	$	238	$	300	$	168
March 31, 2022		$	271	$	334	$	140	$	211	$	304	$	221

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Other borrowings and collateralized financings

We had ~~$1.55~~$1 billion in FHLB borrowings outstanding at ~~March~~December 31, 2023, comprised of floating-rate and fixed-rate advances. The interest rates on our floating-rate advances are ~~generally~~ based on a SOFR. We use interest rate swaps to manage the risk of increases in interest rates associated with the majority of our floating-rate FHLB advances by converting the balances subject to variable interest rates to a fixed interest rate. In March 2023, we increased our fixed-rate FHLB borrowings by $1 billion. We repaid $500 million of such borrowings by March 31, 2023, with the remaining $500 million maturing on April 20, 2023. We subsequently repaid $200 million of the borrowings maturing in April 2023, while extending the remaining $300 million until May 26, 2023 at a rate of 5.23%.

~~During the quarter ended March 31, 2023, we increased~~We pledge certain of our ~~borrowing capacity with the FHLB through the pledge of additional available-for-sale securities. At March 31, 2023, we had pledged $8.77 billion of~~ bank loans ~~net~~ and ~~$4.64 billion of~~ available-for-sale securities with the FHLB as security for both the repayment of ~~outstanding FHLB~~certain borrowings and to secure capacity for additional borrowings as needed. As of ~~March~~December 31, 2023, we had an additional ~~$9.07~~$9.37 billion in immediate credit available from the FHLB based on the collateral ~~pledged, which does include additional capacity created by the $200 million repayment of FHLB borrowings subsequent to quarter end, and with~~pledged. With the pledge of ~~additional~~incremental collateral, we ~~had additional~~could further increase credit ~~availability~~available to us from ~~certain FHLB member banks.~~the FHLB. See Notes 4, 6, 7, and 1413 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding bank loans ~~net~~ and available-for-sale securities pledged with the FHLB and for further information on our FHLB borrowings, including the related maturities and interest rates.

A portion of our fixed income transactions are cleared through a third-party clearing organization, which provides financing for the purchase of trading instruments to support such transactions. The amount of financing is based on the amount of trading inventory financed, as well as any deposits held at the clearing organization. Amounts outstanding under this financing arrangement are collateralized by a portion of our trading inventory and accrue interest based on market rates. While we had borrowings outstanding as of ~~March~~December 31, 2023, the clearing organization is under no contractual obligation to lend to us under this arrangement.

~~Raymond James Bank and TriState Capital Bank~~As member banks, our bank subsidiaries have access to the Federal Reserve’s discount window and may have access to other lending programs that may be established by the Federal Reserve in unusual and exigent circumstances, including the Bank Term Funding Program that was created by the Federal Reserve onin March ~~12, 2023;~~2023 and is expected to expire in March 2024; however, we do not view borrowings from the Federal Reserve as aone of our primary ~~source~~sources of funding. See Note 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information regarding available-for-sale securities and bank loans ~~net~~ pledged with the FRB.

~~As part of the acquisition of TriState Capital,~~At December 31, 2023, we ~~assumed, as of the closing date, TriState Capital’s~~had subordinated notes due 2030 outstanding, with an aggregate principal amount of $98 million. See Note 1413 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and Note 16 of our ~~2022~~2023 Form 10-K for additional information regarding these borrowings.

We may act as an intermediary between broker-dealers and other financial institutions whereby we borrow securities from one ~~broker-dealer~~counterparty and then lend them to ~~another.~~another counterparty. Where permitted, we have also loaned ~~to broker-dealers and other financial institutions,~~ securities owned by clients or the ~~firm.~~firm to broker-dealers and other financial institutions. We account for each of these types of transactions as collateralized agreements and financings, with the outstanding balance of ~~$177~~$347 million as of ~~March~~December 31, 2023 related to the securities loaned included in “Collateralized financings” on our Condensed Consolidated Statements of Financial Condition of this Form 10-Q. See Note 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and Note 2 of our ~~2022~~2023 Form 10-K for more information on our collateralized agreements and financings.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Senior notes payable

At ~~March~~December 31, 2023, we had aggregate outstanding senior notes payable of $2.04 billion, which, exclusive of any unaccreted premiums or discounts and debt issuance costs, was comprised of $500 million par 4.65% senior notes due 2030, $800 million par 4.95% senior notes due 2046, and $750 million par 3.75% senior notes due 2051. See Note 17 of the Notes to the Consolidated Financial Statements of our ~~2022~~2023 Form 10-K for additional information on senior notes payable.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Credit ratings

Our issuer, senior long-term debt, and preferred stock credit ratings as of the most current report are detailed in the following table.

Credit Rating

~~Rating Agency~~

Fitch Ratings, Inc.~~(1)~~

Moody’s

Standard & Poor’s Ratings Services~~(2)~~

Issuer and senior long-term ~~debt~~debt:

Rating

A-

~~Preferred stock~~Outlook

Stable

Last rating action

Affirmed

Upgrade

Date of last rating action

March 2023

February 2022

February 2023

Preferred stock:

Rating

BB+

Baa3 (hyb)

Not rated

~~Outlook~~Last rating action

Affirmed

~~Stable~~

Assigned

N/A

Date of last rating action

~~Stable~~

March 2023

August 2022

~~Stable~~

N/A

~~(1)On March 17, 2023, Fitch Ratings, Inc. affirmed RJF’s issuer and senior long term debt A- rating, preferred stock BB+ rating, and stable rating outlook.~~

~~(2)On February 13, 2023, Standard & Poor’s Rating Services upgraded RJF’s issuer and senior long-term debt from BBB+ to A- and changed the rating outlook to stable.~~

Our current credit ratings depend upon a number of factors, including industry dynamics, operating and economic environment, operating results, operating margins, earnings trends and volatility, balance sheet composition, liquidity and liquidity management, capital structure, overall risk management, business diversification and market share, and competitive position in the markets in which we operate. Deterioration in any of these factors could impact our credit ratings. Any rating downgrades could increase our costs in the event we were to obtain additional financing.

Should our credit rating be downgraded prior to a public debt offering, it is probable that we would have to offer a higher rate of interest to bond holders. A downgrade to below investment grade may make a public debt offering difficult to execute on terms we would consider to be favorable. A downgrade below investment grade could result in the termination of certain derivative contracts and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing overnight collateralization on our derivative instruments in liability positions. A credit downgrade could damage our reputation and result in certain counterparties limiting their business with us, result in negative comments by analysts, potentially negatively impact investors’ and/or clients’ perception of us, cause clients to withdraw bank deposits that exceed FDIC insurance limits from our bank subsidiaries, and cause a decline in our stock price. None of our borrowing arrangements contains a condition or event of default related to our credit ratings. However, a credit downgrade would result in the firm incurring a higher facility fee on the Credit Facility, in addition to triggering a higher interest rate applicable to any borrowings outstanding on that line as of and subsequent to such downgrade. Conversely, an improvement in RJF’s current credit rating could have a favorable impact on the facility fee, as well as the interest rate applicable to any borrowings on such line.

Other sources and uses of liquidity

We have company-owned life insurance policies which are utilized to fund certain non-qualified deferred compensation plans and other employee benefit plans. Certain of our non-qualified deferred compensation plans and other employee benefit plans are employee-directed (i.e., the participant chooses investment portfolio benchmarks) while others are company-directed. Of the company-owned life insurance policies which fund these plans, certain policies could be used as a source of liquidity for the firm. Those policies against which we could readily borrow had a cash surrender value of ~~$863 million~~$1.01 billion as of ~~March~~December 31, 2023, comprised of ~~$554~~$667 million related to employee-directed plans and ~~$309~~$343 million related to company-directed plans, and we were able to borrow up to 90%, or ~~$777~~$909 million, of the ~~March~~December 31, 2023 total without restriction. To effect any such borrowing, the underlying investments would be converted to money market investments, therefore requiring us to take market risk related to the employee-directed plans. There were no borrowings outstanding against any of these policies as of ~~March~~December 31, 2023.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

On May 12, 2021, we filed a “universal” shelf registration statement with the SEC pursuant to which we can issue debt, equity and other capital instruments if and when necessary or perceived by us to be opportune. Subject to certain conditions, this registration statement will be effective through May 12, 2024.

As part of our ongoing operations, we also enter into contractual arrangements that may require future cash payments, including certificates of deposit, lease obligations and other contractual arrangements, such as for software and various services. See Notes 1211 and 1312 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and Notes 14 and 15 of our 2023 Form 10-K for information regarding our lease obligations and certificates of deposit, respectively. We have entered into investment commitments, lending commitments and other commitments to extend credit for which we are unable to reasonably predict the timing of future payments. See Note 1615 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further information.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

REGULATORY

Refer to the discussion of the regulatory environment in which we operate and the impact on our operations of certain rules and regulations in “Item 1 - Business - Regulation” of our ~~2022~~2023 Form 10-K.

RJF and many of its subsidiaries are each subject to various regulatory capital requirements. As of ~~March~~December 31, 2023, all of our active regulated domestic and international subsidiaries had net capital in excess of minimum requirements. In addition, RJF, Raymond James Bank, and TriState Capital Bank were categorized as “well-capitalized” as of ~~March~~December 31, 2023. The maintenance of certain risk-based and other regulatory capital levels could influence various capital allocation decisions impacting one or more of our businesses. However, due to the current capital position of RJF and its regulated subsidiaries, we do not anticipate these capital requirements will have a negative impact on our future business activities. See Note 2120 of the Notes to Condensed Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and capital resources - Capital structure” of this Form 10-Q for further information on regulatory capital requirements.

The Department of Labor (“DOL”) recently proposed the “Retirement Security Rule.” This proposed regulation amends the definition of a “fiduciary” in connection with investment advice regarding employee benefit plans and individual retirement accounts (“the Proposed Fiduciary Rule”). Along with the Proposed Fiduciary Rule, the DOL issued proposed amendments to several prohibited transaction exemptions. If finalized, the Proposed Fiduciary Rule, along with the amended prohibited transaction exemptions, could have a material adverse effect on our business and results of operations.

CRITICAL ACCOUNTING ESTIMATES

The condensed consolidated financial statements are prepared in accordance with GAAP, which require us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses for the reporting period. Management has established detailed policies and control procedures intended to ensure the appropriateness of such estimates and assumptions and their consistent application from period to period. For a description of our significant accounting policies, see Note 2 of the Notes to Consolidated Financial Statements of our ~~2022~~2023 Form 10-K.

Due to their nature, estimates involve judgment based upon available information. Actual results or amounts could differ from estimates and the difference could have a material impact on the condensed consolidated financial statements. Therefore, understanding these critical accounting estimates is important in understanding our reported results of operations and financial position. We believe that of our accounting estimates and assumptions, those described in the following sections involve a high degree of judgment and complexity.

Loss provisions

Loss provisions for legal and regulatory matters

The recorded amount of liabilities related to legal and regulatory matters is subject to significant management judgment. For a description of the significant estimates and judgments associated with establishing such accruals, see the “Contingent liabilities” section of Note 2 of the Notes to Consolidated Financial Statements of our ~~2022~~2023 Form 10-K. In addition, refer to Note 1615 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding legal and regulatory matters contingencies as of ~~March~~December 31, 2023.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Allowance for credit losses

We evaluate certain of our financial assets, including bank loans, to estimate an allowance for credit losses based on expected credit losses over a financial asset’s lifetime. The remaining life of our financial assets is determined by considering contractual terms and expected prepayments, among other factors. We use multiple methodologies in estimating an allowance for credit losses and our approaches differ by type of financial asset and the risk characteristics within each financial asset type. Our estimates are based on ongoing evaluations of our financial assets, the related credit risk characteristics, and the overall economic and environmental conditions affecting the financial assets. Our process for determining the allowance for credit losses includes a complex analysis of several quantitative and qualitative factors requiring significant management judgment due to matters that are inherently uncertain. This uncertainty can produce volatility in our allowance for credit losses. In addition, the allowance for credit losses could be insufficient to cover actual losses. In such an event, any losses in excess of our allowance would result in a decrease in our net income, as well as a decrease in the level of regulatory capital.

We generally estimate the allowance for credit losses on bank loans using credit risk models which incorporate relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable economic forecasts. After testing the reasonableness of a variety of economic forecast scenarios, each model is run using a single forecast scenario selected for each model. Our forecasts incorporate assumptions related to macroeconomic indicators including, but not limited to, U.S. gross domestic product, equity market indices, unemployment rates, and commercial real estate and residential home price indices.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

To demonstrate the sensitivity of credit loss estimates on our bank loan portfolio to macroeconomic forecasts, we compared our modeled estimates under the base case economic scenario used to estimate the allowance for credit losses as of ~~March~~December 31, 2023, to what our estimate would have been under a downside case scenario and an upside scenario, without considering any offsetting effects in the qualitative component of our allowance for credit losses as of ~~March~~December 31, 2023. As of ~~March~~December 31, 2023, use of the downside case scenario would have resulted in an increase of approximately ~~$200~~$230 million in the quantitative portion of our allowance for credit losses on bank loans, while the use of the upside case would have resulted in a reduction of approximately ~~$40~~$45 million in the quantitative portion of our allowance for credit losses on bank loans at ~~March~~December 31, 2023. These hypothetical outcomes reflect the relative sensitivity of the modeled portion of our allowance estimate to macroeconomic forecasted scenarios but do not consider any potential impact qualitative adjustments could have on the allowance for credit losses in such environments. Qualitative adjustments could either increase or decrease modeled loss estimates calculated using an alternative economic scenario assumption. Further, such sensitivity calculations do not necessarily reflect the nature and extent of future changes in the related allowance for a number of reasons including: (1) management’s predictions of future economic trends and relationships among the scenarios may differ from actual events; and (2) management’s application of subjective measures to modeled results through the qualitative portion of the allowance for credit losses when appropriate. The downside case scenario utilized in this hypothetical sensitivity analysis assumes a moderate recession. To the extent macroeconomic conditions worsen beyond those assumed in this downside case scenario, we could incur provisions for credit losses significantly in excess of those estimated in this analysis.

See Note 2 of the Notes to Consolidated Financial Statements of our ~~2022~~2023 Form 10-K for information regarding our methodologies and assumptions used in estimating the allowance for credit losses. See Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding our allowance for credit losses related to bank loans as of ~~March~~December 31, 2023.

~~RECENT~~ ACCOUNTING ~~DEVELOPMENTS~~STANDARDS UPDATE

In March 2022, the Financial Accounting Standards Board issued new guidance related to troubled debt restructurings 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 amendment eliminates the accounting guidance for troubled debt restructurings for creditors, but requires enhanced disclosures for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty, and requires disclosure of current-period gross write-offs by year of origination for financing receivables. This new guidance is effective for our fiscal year beginning on October 1, 2023 and will be applied on a prospective basis. Although permitted, we do not plan to early adopt. We do not expect the adoption of this new guidance to have a material impact on our financial position and results of operations.

~~In March~~November 2023, the FASB issued amended guidance related to ~~accounting~~disclosures for ~~investments in tax credit structures using the proportional amortization method~~segment reporting (ASU ~~2023-02)~~2023-07). The amendment ~~permits reporting entities~~requires a public entity to ~~elect~~disclose on an annual and interim basis, for each reportable segment, the significant segment expenses that are regularly provided to ~~account for their tax equity investments using~~ the ~~proportional amortization method if certain conditions are met~~chief operating decision maker and ~~makes the delayed equity contributions~~included within each reported measure of segment profit or loss. The guidance ~~applicable only when the proportional amortization method is applied to a tax equity investment. This amendment~~ also requires ~~entities~~a public entity to ~~make disclosures about all investments in~~disclose, for each reportable segment, an amount for other segment items (those not captured as a ~~tax credit program for which they have elected to account for using~~significant expense) and the ~~proportional amortization method, including those investments in an elected tax credit program that do not meet the conditions to use the proportional amortization method.~~reported measure of a segment’s profit or loss. This new guidance is effective for annual periods beginning in our fiscal ~~year~~2025 and interim periods beginning ~~on October 1, 2024.~~in our fiscal first quarter of 2026 with early adoption permitted. This guidance ~~may~~will be applied on a retrospective basis or modified retrospective basis to all qualifying tax equity investments; however, the transition method must be applied consistently to all affected investments. Although permitted, we do not currently plan to early adopt.basis. We are ~~still~~ evaluating the impact ~~the adoption of~~that this new guidance will have on our ~~financial position, results of operations, and~~ disclosures.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

In December 2023, the FASB issued amended guidance related to disclosures for income taxes (ASU 2023-09). The amendment requires a public entity to enhance its existing annual tabular reconciliation of its statutory income tax rate to its effective tax rate, with certain reconciling items at or above 5% of the applicable statutory income tax rate broken out by nature and/or jurisdiction. The guidance also requires an entity to disclose income taxes paid (net of refunds received), disaggregated by federal, state, and foreign taxes, and net amounts paid to an individual jurisdiction when they represent 5% or more of the total income taxes paid. This new guidance is effective for annual periods beginning in our fiscal 2026 with early adoption permitted. This guidance will be applied on a prospective basis with retrospective application permitted. We are evaluating the impact that this new guidance will have on our disclosures.

See Note 2 of the Notes to the Condensed Consolidated Financial Statements of this Form 10-Q for information regarding new accounting guidance we adopted during the three months ended December 31, 2023.

RISK MANAGEMENT

Risks are an inherent part of our business and activities. Management of risk is critical to our fiscal soundness and profitability. Our risk management processes are multi-faceted and require communication, judgment, and knowledge of financial products and markets. We have a formal Enterprise Risk Management (“ERM”) program to assess and review aggregate risks across the firm. Our management takes an active role in the ERM process, which requires specific administrative and business functions to participate in the identification, assessment, monitoring and control of various risks.

The principal risks related to our business activities are market, credit, liquidity, operational, model, and compliance.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Governance

Our Board of Directors, including its Risk Committee and Audit Committee, oversees the firm’s management and mitigation of risk, reinforcing a culture that encourages ethical conduct and risk management throughout the firm. Senior management communicates and reinforces this culture through three lines of risk management and a number of senior-level management committees. Our first line of risk management, which includes all of our businesses, owns its risks and is responsible for identifying, mitigating, and escalating risks arising from its day-to-day activities. The second line of risk management, which includes Compliance and Risk Management, advises our client-facing businesses and other first-line functions in identifying, assessing, and mitigating risk. The second line of risk management tests and monitors the effectiveness of controls, as deemed necessary, and escalates risks when appropriate to senior management and the Board of Directors. The third line of risk management, Internal Audit, independently reviews activities conducted by the previous lines of risk management to assess their management and mitigation of risk, providing additional assurance to the Board of Directors and senior management, with a view toward enhancing our oversight, management, and mitigation of risk. Our legal department provides legal advice and guidance to each of these three lines of risk management.

Market risk

Market risk is our risk of loss resulting from the impact of changes in market prices on our trading inventory, derivatives, and investment positions. We have exposure to market risk primarily through our broker-dealer trading operations and our banking operations. Through our broker-dealer subsidiaries, we trade debt obligations and equity securities and maintain trading inventories to ensure availability of securities to facilitate client transactions. Inventory levels may fluctuate daily as a result of client demand. We also hold investments within our available-for-sale securities portfolio, and from time to time may hold ~~SBA~~Small Business Administration loan securitizations not yet ~~transferred.~~sold. Our primary market risks relate to interest rates, equity prices, and foreign exchange rates. Interest rate risk results from changes in levels of interest rates, the volatility of interest rates, mortgage prepayment speeds, and credit spreads. Equity risk results from changes in prices of equity securities. Foreign exchange risk results from changes in spot prices, forward prices, and volatility of foreign exchange rates. See Note 2 of the Notes to Consolidated Financial Statements of our ~~2022~~2023 Form 10-K and Notes 3, 4, and 5 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for fair value and other information regarding our trading inventories, available-for-sale securities, and derivative instruments.

We regularly enter into underwriting commitments and, as a result, we may be subject to market risk on any unsold ~~shares~~securities issued in the offerings to which we are committed. Risk exposure is controlled by limiting our participation, the transaction size, or through the syndication process.

The Market Risk Management department is responsible for measuring, monitoring, and reporting market risks associated with the firm’s trading and derivative portfolios. While Market Risk Management maintains ongoing communication with the revenue-generating business units, it is independent of such units.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Interest rate risk

Trading activities

We are exposed to interest rate risk as a result of our trading inventory (primarily comprised of fixed income instruments) in our Capital Markets segment. Changes in the value of our trading inventory may result from fluctuations in interest rates, credit spreads, equity prices, macroeconomic factors, investor expectations or risk appetites, liquidity, as well as dynamic relationships ~~among~~between these factors. We actively manage interest rate risk arising from our fixed income trading inventory through the use of hedging strategies utilizing U.S. Treasuries, exchange traded funds, futures contracts, liquid spread products, and derivatives.

Our primary method for controlling risks within trading inventories is through the use of dollar-based and exposure-based limits. A hierarchy of limits exists at multiple levels, including firm, business unit, desk (e.g., for equities, corporate bonds, municipal bonds), product sub-type (e.g., below-investment-grade positions) and ~~at times, at the individual position.~~issuer concentration. For derivative positions, which are primarily comprised of interest rate swaps, we have established sensitivity-based and foreign exchange spot limits. Trading positions and derivatives are monitored against these limits through daily reports that are distributed to senior management.During volatile markets, we may temporarily reduce limits and/or choose to pare our trading inventories to reduce risk.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

We monitor Value-at-Risk (“VaR”) for all of our trading portfolios on a daily basis for risk management purposes and as a result of applying the Fed’s Market Risk Rule (“MRR”) for the purpose of calculating our capital ratios. The MRR, also known as the “Risk-Based Capital Guidelines: Market Risk” rule released by the Fed, the Office of the Comptroller of the Currency and the FDIC, requires us to calculate VaR for all of our trading portfolios, including fixed income, equity, derivatives, and foreign exchange instruments. VaR is an appropriate statistical technique for estimating potential losses in trading portfolios due to typical adverse market movements over a specified time horizon with a suitable confidence level. However, there are inherent limitations ofto utilizing VaR including: historical movements in markets may not accurately predict future market movements; VaR does not take into account the liquidity of individual positions; VaR does not estimate losses over longer time horizons; and extended periods of one-directional markets potentially distort risks within the portfolio. In addition, should markets become more volatile, actual trading losses may exceed VaR results presented on a single day and might accumulate over a longer time horizon. As a result, management complements VaR with sensitivity analysis and stress testing and employs additional controls such as a daily review of trading results, review of aged inventory, independent review of pricing, monitoring of concentrations, and review of issuer ratings.

To calculate VaR, we use models ~~which~~that incorporate historical simulation. This approach assumes that historical changes in market conditions, such as in interest rates and equity prices, are representative of future changes. Simulation is based on daily market data for the previous twelve months. VaR is reported at a 99% confidence level for a one-day time horizon. Assuming that future market conditions change as they have in the past twelve months, we would expect to incur losses greater than those predicted by our one-day VaR estimates about once every 100 trading days, or about three times per year on average. For regulatory capital calculation purposes, we also report VaR and Stressed VaR numbers for a ten-day time horizon. The VaR model is independently reviewed by our Model Risk Management function. See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Model risk” of our ~~2022~~2023 Form 10-K for further information.

The modeling of the risk characteristics of trading positions involves a number of assumptions and approximations that management believes to be reasonable. However, there is no uniform industry methodology for estimating VaR, and different assumptions or approximations could produce materially different VaR estimates. As a result, VaR results are more reliable when used as indicators of risk levels and trends within a firm than as a basis for inferring differences in risk-taking across firms.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

The following table sets forth the high, low, period-end and average daily one-day VaR for all of our trading portfolios, including fixed income and equity instruments, and for our derivatives for the periods and dates indicated.




		Six months ended March 31, 2023				Period-end VaR					Three months ended March 31,				Six months ended March 31,
$ in millions	$ in millions	High		Low		March 31, 2023		September 30, 2022		$ in millions	2023		2022		2023		2022
$ in millions
$ in millions
Daily VaR	Daily VaR	$	3	$	1	$	1	$	3	Average daily VaR	$	2	$	1	$	2	$	1
Daily VaR
Daily VaR

Average daily VaR was higher during the three and six months ended March 31, 2023 compared with the three and six months ended March 31, 2022 due to the impact of increased market volatility during the period, as well as the addition of the SumRidge Partners trading inventory beginning in July 2022. Period-end VaR was lower at ~~March~~December 31, 2023 compared towith September 30, ~~2022,~~2023, due to lower net exposure as a ~~decline~~result of a change in the mix of our trading inventory.

The Fed’s MRR requires us to perform daily back-testing procedures for our VaR model, whereby we compare each day’s projected VaR to its regulatory-defined daily trading losses, which exclude fees, commissions, reserves, net interest income, and intraday trading. Regulatory-defined daily trading losses are used to evaluate the performance of our VaR model and are not comparable to our actual daily net revenues. Based on these daily “ex ante” versus “ex post” comparisons, we determine whether the number of times that regulatory-defined daily trading losses exceed VaR is consistent with our expectations at a 99% confidence level. During the three ~~and six~~ months ended ~~March~~December 31, 2023, our regulatory-defined daily losses in our trading portfolios ~~exceeded~~did not exceed our predicted ~~VaR on one occasion.~~VaR.

Separately, RJF provides additional market risk disclosures to comply with the MRR, including 10-day VaR and 10-day Stressed VaR, which are available on our website at https://www.raymondjames.com/investor-relations/financial-information/filings-and-reports within “Other Reports and Information.”

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Banking operations

Our Bank segment maintains an interest-earning asset portfolio that is comprised of cash, SBL, C&I loans, ~~commercial and~~CRE loans, REIT loans, residential ~~real estate loans, REIT~~mortgage loans, and tax-exempt loans, as well as securities held in the available-for-sale securities portfolio. These interest-earning assets are primarily funded by client deposits. Based on the current asset portfolio, our banking operations are subject to interest rate risk. We analyze interest rate risk based on forecasted net interest income, which is the net amount of interest received and interest paid, and the net portfolio valuation, both across a range of interest rate scenarios.

One of the objectives of ~~the~~our Asset and Liability Committee is to manage the sensitivity of net interest income to changes in market interest rates. This committee uses several measures to monitor and limit interest rate risk in our banking operations, including scenario analysis and economic value of equity (“EVE”). We utilize a hedging ~~strategy~~strategies using interest rate swaps in our banking operations as a ~~result~~component of our asset and liability management process. For further information regarding this hedging strategy, see Note 2 of the Notes to Consolidated Financial Statements of our ~~2022~~2023 Form 10-K and Notes 1312 and 1413 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q. See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and capital resources” of our 2023 Form 10-K for further information.

To ensure that we remain within the tolerances established for net interest income, a sensitivity analysis of net interest income to interest rate conditions is estimated under a variety of scenarios. We use simulation models and estimation techniques to assess the sensitivity of net interest income to movements in interest rates. The model estimates the sensitivity by calculating interest income and interest expense in a dynamic balance sheet environment using current repricing, prepayment, and reinvestment of cash flow assumptions over a 12-month time horizon. Assumptions used in the model include interest rate movement, the slope of the yield curve, and balance sheet composition and growth. The model also considers interest rate-related risks such as pricing spreads, pricing of client cash accounts, including deposit betas, and prepayments. Various interest rate scenarios are modeled in order to determine the effect those scenarios may have on net interest income.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

The following table is an analysis of our banking operations’ estimated net interest income over a 12-month period based on instantaneous shifts in interest rates (expressed in basis points) using our previously described asset/liability model, which assumes a dynamic balance sheet, a weighted-average deposit beta on our interest-bearing deposit accounts without stated maturities of approximately 40% as both interest rates rise and fall, and that interest rates do not decline below zero. While not presented, additional rate scenarios are performed, including interest rate ramps and yield curve shifts that may more realistically mimic the speed of potential interest rate movements. We also perform simulations on time horizons of up to five years to assess longer-term impacts to various interest rate scenarios. On a quarterly basis, we test expected model results to actual performance. Additionally, any changes made to key assumptions in the model are documented and approved by the Asset and Liability Committee.


Instantaneous changes in rate (1)	Instantaneous changes in rate (1)	Net interest income ($ in millions)	Projected change in net interest income	Instantaneous changes in rate (1)	Net interest income ($ in millions)	Projected change in net interest income
+200	+200	$2,120	14%	+200	$1,971	13%
+100	+100	$1,989	7%	+100	$1,892	8%
0	0	$1,860	—%	0	$1,745	—%
-100	-100	$1,733	(7)%	-100	$1,642	(6)%
-200	-200	$1,599	(14)%	-200	$1,548	(11)%

(1)Our 0-basis point scenario was based on interest rates as of ~~March~~December 31, ~~2023 and did~~2023.

The preceding table does not include the ~~impact~~impacts of ~~the Fed’s May 4, 2023 increase~~an instantaneous change in ~~its benchmark short-term rate.~~

interest rates on net interest income on assets and liabilities outside of our banking operations or on our RJBDP fees from third-party banks, which are also sensitive to changes in interest rates and are included in “Account and service fees” on our Condensed Consolidated Statements of Income and Comprehensive Income. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Net interest analysis” of this Form 10-Q for ~~a discussion~~additional information on our net interest income.

We have classified all of our investments in debt securities as available-for-sale and have not classified any of our investments in debt securities as held-to-maturity. In our available-for-sale securities portfolio, we hold primarily fixed-rate agency-backed MBS, agency-backed CMOs, and U.S. Treasuries, which are carried at fair value on our Condensed Consolidated Statements of Financial Condition, with changes in the fair value of the ~~impact~~portfolio recorded through OCI on our Condensed Consolidated Statements of Income and Comprehensive Income. As the majority of our available-for-sale securities portfolio is comprised of U.S. government and government agency-backed securities, changes in ~~short-term~~fair value are primarily driven by changes in interest rates. At December 31, 2023, our available-for-sale securities portfolio had a fair value of $9.20 billion with a weighted-average yield of 2.13% and a weighted-average life, after factoring in estimated prepayments, of 4.0 years. To evaluate the interest rate sensitivity of our available-for-sale securities portfolio we also monitor, among other things, effective duration, defined as the approximate percentage change in price for a 100-basis point change in rates. As of December 31, 2023, the effective duration of our available-for-sale securities portfolio was approximately 3.37, which means that we would expect the market value of our available-for-sale securities portfolio to decline approximately 3.37% for every 100-basis point increase in interest rates ~~could have~~and increase approximately 3.37% for every 100-basis point decline in interest rates. See Note 2 of the Notes to Consolidated Financial Statements of our 2023 Form 10-K and Note 4 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information on ~~the consolidated firm’s operations.~~our available-for-sale securities portfolio.

The Asset and Liability Committee also reviews EVE, which is a point in time analysis of current interest-earning assets and interest-bearing liabilities that incorporates all cash flows over their estimated remaining lives, discounted at current rates. The EVE approach is based on a static balance sheet and provides an indicator of future earnings and capital levels as the changes in EVE indicate the anticipated change in the value of future cash flows. We monitor sensitivity to changes in EVE utilizing Board of Directors-approved limits. These limits set a risk tolerance to changing interest rates and assist in determining strategies for mitigating this risk as EVE approaches these limits. As of ~~March~~December 31, 2023, our EVE analyses were within approved limits.

8776


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

The following table shows the maturities of our bank loan portfolio at ~~March~~December 31, 2023, including contractual principal repayments. Maturities are generally determined based upon contractual terms; however, rollovers or extensions that are included for the purposes of measuring the allowance for credit losses are reflected in maturities in the following table. This table does not include any estimates of prepayments, which could shorten the average loan lives and cause the actual timing of the loan repayments to differ significantly from those shown in the table.


		Due in											Due in
$ in millions	$ in millions	One year or less		> One year – five years		> Five years - fifteen years		> Fifteen years		Total		$ in millions	One year or less	> One year - five years	> Five years - fifteen years	> Fifteen years	Total
SBL	SBL	$	13,747	$	400	$	79	$	1	$	14,227
C&I loans	C&I loans	891		7,519		2,811		38		11,259
CRE loans	CRE loans	923		4,172		1,937		22		7,054
REIT loans	REIT loans	256		1,401		60		—		1,717
Residential mortgage loans	Residential mortgage loans	13		36		201		7,829		8,079
Tax-exempt loans	Tax-exempt loans	169		253		1,221		—		1,643
Total loans held for investment	Total loans held for investment	15,999		13,781		6,309		7,890		43,979
Held for sale loans	Held for sale loans	—		—		47		72		119
Total loans held for sale and investment	Total loans held for sale and investment	$	15,999	$	13,781	$	6,356	$	7,962	$	44,098

The following table shows the distribution of the recorded investment of those bank loans that mature in more than one year between fixed and adjustable interest rate loans at ~~March~~December 31, 2023.


		Interest rate type							Interest rate type
$ in millions	$ in millions	Fixed		Adjustable		Total		$ in millions	Fixed	Adjustable	Total
SBL	SBL	$	12	$	468	$	480
C&I loans	C&I loans	899		9,469		10,368
CRE loans	CRE loans	419		5,712		6,131
REIT loans	REIT loans	—		1,461		1,461
Residential mortgage loans	Residential mortgage loans	230		7,836		8,066
Tax-exempt loans	Tax-exempt loans	1,474		—		1,474
Total loans held for investment	Total loans held for investment	3,034		24,946		27,980
Held for sale loans	Held for sale loans	2		117		119
Total loans held for sale and investment	Total loans held for sale and investment	$	3,036	$	25,063	$	28,099

Contractual loan terms for SBL, C&I loans, CRE loans, REIT loans, and residential mortgage loans may include an interest rate floor, cap and/or fixed interest rates for a certain period of time, which would impact the timing of the interest rate reset for the respective loan. See the discussion within the “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk - Risk monitoring process” section of this Form 10-Q for additional information regarding our interest-only residential mortgage loan portfolio.

In our available-for-sale securities portfolio, we hold primarily fixed-rate agency-backed MBS, agency-backed CMOs, and U.S. Treasuries, which are carried at fair value on our Condensed Consolidated Statements of Financial Condition, with changes in the fair value of the portfolio recorded through OCI on our Condensed Consolidated Statements of Income and Comprehensive Income. At March 31, 2023, our available-for-sale securities portfolio had a fair value of $9.77 billion with a weighted-average yield of 2.03% and a weighted-average life of 4.38 years. The effective duration of our available-for-sale securities portfolio as of March 31, 2023 was approximately 3.65, where duration is defined as the approximate percentage change in price for a 100-basis point change in rates. See Note 4 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information on our available-for-sale securities portfolio.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Equity price risk

We are exposed to equity price risk as a result of our capital markets activities. Our broker-dealer activities are generally client-driven, and we carry equity securities as part of our trading inventory to facilitate such activities, although the amounts are not as significant as our fixed income trading inventory. We attempt to reduce the risk of loss inherent in our inventory of equity securities by monitoring those security positions each day and establishing position limits. Equity securities held in our trading inventory are generally included in VaR.

In addition, we have a private equity portfolio, included in “Other investments” on our Condensed Consolidated Statements of Financial Condition, which is primarily comprised of investments in third-party funds. See Note 3 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for additional information on this portfolio.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Foreign exchange risk

We are subject to foreign exchange risk due to our investments in foreign subsidiaries as well as transactions and resulting balances denominated in a currency other than the U.S. ~~dollar.~~dollar (“USD”). For example, our bank loan portfolio includes loans which are denominated in Canadian dollars (“CAD”), totaling ~~$1.54~~$1.40 billion ~~and $1.51 billion at March~~as of both December 31, 2023 and September 30, ~~2022, respectively,~~2023, when converted to the ~~U.S. dollar.~~USD. A majority of such loans are held in a Canadian subsidiary of Raymond James Bank, which is discussed in the following sections.

Investments in foreign subsidiaries

Raymond James Bank has an investment in a Canadian subsidiary, resulting in foreign exchange risk. To mitigate its foreign exchange risk, Raymond James Bank utilizes short-term, forward foreign exchange contracts. These derivatives are primarily accounted for as net investment hedges in the condensed consolidated financial statements. See Note 2 of the Notes to Consolidated Financial Statements of our ~~2022~~2023 Form 10-K and Note 5 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further information regarding these derivatives.

At ~~March~~December 31, 2023, we had foreign exchange risk in our investment in RJ Ltd. of CAD ~~413~~429 million and in our investment in Charles Stanley of ~~£274~~£289 million, which were not hedged. ~~All of our~~We had other, less significant investments ~~consisting~~in foreign domiciled subsidiaries, primarily ~~of subsidiaries located~~ in Europe, ~~are~~which were not ~~hedged, and~~hedged; however, we do not believe we had material foreign exchange risk either individually, or in the aggregate, pertaining to these subsidiaries as of ~~March~~December 31, 2023. Foreign exchange gains/losses related to our foreign investments are primarily reflected in OCI on our Condensed Consolidated Statements of Income and Comprehensive Income. See Note 1716 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further information regarding our components of OCI.

Transactions and resulting balances denominated in a currency other than the ~~U.S. dollar~~USD

We are subject to foreign exchange risk due to our holdings of cash and certain other assets and liabilities resulting from transactions denominated in a currency other than the ~~U.S. dollar.~~USD. Any currency-related gains/losses arising from these foreign currency denominated balances are reflected in “Other” revenues in our Condensed Consolidated Statements of Income and Comprehensive Income. The foreign exchange risk associated with a portion of such transactions and balances denominated in foreign currency are mitigated utilizing short-term, forward foreign exchange contracts. Such derivatives are not designated hedges and therefore, the related gains/losses are included in “Other” revenues in our Condensed Consolidated Statements of Income and Comprehensive Income. See Note 5 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for information regarding our derivatives.

Credit risk

Credit risk is the risk of loss due to adverse changes in a borrower’s, issuer’s, or counterparty’s ability to meet its financial obligations under contractual or agreed-upon terms. The nature and amount of credit risk depends on the type of transaction, the structure and duration of that transaction, and the parties involved. Credit risk is an integral component of the profit assessment of lending and other financing activities. See further discussion of our credit risk, including how we manage such risk, in “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk” of our ~~2022~~2023 Form 10-K.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Corporate activities

We maintain cash balances with the Fed and with various financial institutions, primarily global systemically important ~~banks,~~financial institutions, in our normal course of business. A large portion of such balances are in excess of FDIC insurance limits. As a result, we may be exposed to the risk that these financial institutions may not return our cash to us in the event that the institution experiences financial distress or ceases its operations. In order to mitigate our credit risk to such financial institutions, we monitor our exposure with each institution on a daily basis and subject each institution to limits based on various factors including but not limited to financial strength, capitalization levels, liquidity, credit ratings, and market factors to the extent applicable.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Brokerage activities

We are engaged in various trading and brokerage activities in which our counterparties primarily include broker-dealers, banks, exchanges, clearing organizations, and other financial institutions. We are exposed to risk that these counterparties may not fulfill their obligations. In addition, certain commitments, including underwritings, may create exposure to individual issuers and businesses. The risk of default depends on the creditworthiness of the counterparty and/or the issuer of the instrument. In addition, we may be subject to concentration risk if we hold large positions in or have large commitments to a single counterparty, borrower, or group of similar counterparties or borrowers (e.g., in the same industry). We seek to mitigate these risks by imposing and monitoring individual and aggregate position limits within each business segment for each counterparty, conducting regular credit reviews of financial counterparties, reviewing security, derivative and loan concentrations, holding ~~and calculating the fair value of~~ collateral onas security for certain transactions and conducting business through clearing organizations, which may guarantee performance. See Note 2 of the Notes to Consolidated Financial Statements of our ~~2022~~2023 Form 10-K and Notes 5 and 6 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further information about our credit risk mitigation related to derivatives and collateralized agreements.

Our client activities involve the execution, settlement, and financing of various transactions on behalf of our clients. Client activities are transacted on either a cash or margin basis. Credit exposure results from client margin loans, which are monitored daily and are collateralized by the securities in the clients’ accounts. We monitor exposure to industry sectors and individual securities ~~and perform analysis~~ on a daily basis in connection with our margin lending activities. We adjust our margin requirements if we believe our risk exposure is not appropriate based on market conditions. In addition, when clients execute a purchase, we are at some risk that the client will default on their financial obligation associated with the trade. If this occurs, we may have to liquidate the position at a loss. See Note 2 of the Notes to ~~the~~ Consolidated Financial Statements of our ~~2022~~2023 Form 10-K for ~~further~~additional information about our determination of the allowance for credit losses associated with certain of our brokerage lending activities.

We offer loans to financial advisors for recruiting and retention purposes. We have credit risk and may incur a loss primarily in the event that such borrower is no longer affiliated with us. See Note 2 of the Notes to ~~the~~ Consolidated Financial Statements of our ~~2022~~2023 Form 10-K and Note 8 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q for further information about our loans to financial advisors.

Banking activities

Our Bank segment has a substantial loan portfolio. Our strategy for credit risk management related to bank loans includes well-defined credit policies, uniform underwriting criteria, and ongoing risk monitoring and review processes for all credit exposures. The strategy also includes diversification across loan types, geographic ~~location, industry~~locations, industries and ~~client level,~~clients, regular credit examinations and management reviews of all corporate and tax-exempt loans as well as individual delinquent residential loans. The credit risk management process also includes ~~annual~~ independent reviews at least annually of the credit risk monitoring process that performs assessments of compliance with credit policies, risk ratings, and other critical credit information. We seek to identify potential problem loans early, record any necessary risk rating changes and charge-offs promptly, and maintain appropriate reserve levels for expected losses. We utilize a thorough credit risk rating system to measure the credit quality of individual corporate and tax-exempt loans and related unfunded lending commitments. For our residential mortgage loans and substantially all of our SBL, we utilize the credit risk rating system used by bank regulators in measuring the credit quality of each homogeneous class of loans. In evaluating credit risk, we consider trends in loan performance, historical experience through various economic cycles, industry or client concentrations, the loan portfolio composition and macroeconomic factors (both current and forecasted). These factors have a potentially negative impact on loan performance and net charge-offs.

While our bank loan portfolio is diversified, a significant downturn in the overall economy, deterioration in real estate values or a significant issue within any sector or sectors where we have a concentration will generally result in large provisions for credit losses and/or charge-offs. We determine the allowance required for specific loan pools based on relative risk characteristics of the loan portfolio. On an ongoing basis, we evaluate our methods for determining the allowance for each class of loans and

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

make enhancements we consider appropriate. Our allowance for credit losses methodology is described in Note 2 of the Notes to ~~the~~ Consolidated Financial Statements of our ~~2022~~2023 Form 10-K. As our bank loan portfolio is segregated into six portfolio segments, likewise, the allowance for credit losses is segregated by these same segments. See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk” of our ~~2022~~2023 Form 10-K for further information about the risk characteristics relevant to each portfolio segment.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

The level of charge-off activity is a factor that is considered in evaluating the potential severity of future credit losses. The following table presents net loan (charge-offs)/recoveries and the annualized percentage of net loan (charge-offs)/recoveries to the average outstanding loan balances by loan portfolio segment.

Three months ended March 31, Six months ended March 31,
2023 2022 2023 2022
$ in millions
Net loan
(charge-off)/recovery
amount (1)
Annualized
% of avg.
outstanding
loans Net loan
(charge-off)/recovery
amount Annualized
% of avg.
outstanding
loans
Net loan
(charge-off)/recovery
amount (1)
Annualized
% of avg.
outstanding
loans Net loan
(charge-off)/recovery
amount Annualized
% of avg.
outstanding
loans
C&I loans $ (20) 0.71 % $ (1) 0.05 % $ (24) 0.43 % $ (3) 0.07 %
CRE loans — — % — — % 2 0.06 % — — %
Residential mortgage loans — — % — — % — — % 1 0.04 %
Total loans held for sale and investment $ (20) 0.18 % $ (1) 0.01 % $ (22) 0.10 % $ (2) 0.02 %

~~(1) Net charge-offs during the three and six months ended March 31, 2023 were primarily related to two C&I loans.~~


	Three months ended December 31,
		2023	2022
$ in millions			Net loan (charge-off)/recovery amount		Annualized % of avg. outstanding loans		Net loan (charge-off)/recovery amount		Annualized % of avg. outstanding loans

C&I loans			$	(6)	0.23	%	$	(4)	0.14	%
CRE loans			(2)		0.11	%	2		0.12	%



Total loans held for sale and investment			$	(8)	0.07	%	$	(2)	0.02	%

The level of nonperforming assets is another indicator of potential future credit losses. Nonperforming assets are comprised of both nonperforming loans and other real estate owned. Nonperforming loans include those loans which have been placed on nonaccrual status and certain accruing loans which are 90 days or more past due and in the process of collection. The following table presents the balance of nonperforming loans, nonperforming assets, and related key credit ratios.


$ in millions	$ in millions	March 31, 2023			September 30, 2022			$ in millions	December 31, 2023		September 30, 2023

Nonperforming loans (1)
Nonperforming loans (1)
Nonperforming loans (1)	Nonperforming loans (1)	$	99		$	74
Nonperforming assets	Nonperforming assets	$	99		$	74

Nonperforming loans as a % of total loans held for sale and investment	Nonperforming loans as a % of total loans held for sale and investment	0.22		%	0.17		%

Nonperforming loans as a % of total loans held for sale and investment

Nonperforming loans as a % of total loans held for sale and investment									0.37	%	0.29	%
Allowance for credit losses as a % of nonperforming loans	Allowance for credit losses as a % of nonperforming loans	419		%	535		%	Allowance for credit losses as a % of nonperforming loans	292	%	370	%
Nonperforming assets as a % of Bank segment total assets	Nonperforming assets as a % of Bank segment total assets	0.16		%	0.13		%	Nonperforming assets as a % of Bank segment total assets	0.27	%	0.21	%

(1)Nonperforming loans at ~~March~~December 31, 2023 and September 30, ~~2022~~2023 included ~~$90~~$87 million and ~~$63~~$96 million of loans, respectively, which were current pursuant to their contractual terms.

The increase in nonperforming ~~loan balances in the preceding table excluded $6 million~~loans and ~~$7 million~~assets as of ~~March~~December 31, 2023 ~~and~~as compared with September 30, ~~2022, respectively,~~2023 was primarily due to two loans that were placed on nonaccrual status with an associated allowance during the three months ended December 31, 2023. See table summarizing nonaccrual loans by category in Note 7 of ~~residential troubled debt restructurings which were returned~~the Notes to ~~accrual status in accordance with our policy.~~

Condensed Consolidated Financial Statements of this Form 10-Q. Although our nonperforming assets as a percentage of our Bank segment’s assets remained low as of ~~March~~December 31, 2023, any prolonged period of market deterioration could result in an increase in our nonperforming assets, an increase in our allowance for credit losses and/or an increase in net charge-offs in future periods, although the extent would depend on future developments that are highly uncertain.

See further explanation of our bank loan portfolio segments, allowance for credit losses, and the credit loss provision in Note 7 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q and “Management’s Discussion and Analysis - Results of Operations - Bank” of this Form 10-Q and Note 2 of the Notes to ~~the~~ Consolidated Financial Statements of our ~~2022~~2023 Form 10-K.

Loan underwriting policies

Our underwriting policies for the major types of bank loans are described in “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk” of our ~~2022~~2023 Form 10-K.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

~~Management’s Discussion and Analysis~~

Risk monitoring process

Another component of credit risk strategy for our bank loan portfolio is the ongoing risk monitoring and review processes, including our internal loan review process, as well as our rigorous processes to manage and limit credit losses arising from loan delinquencies. There are various other factors included in these processes, depending on the loan portfolio. There were no significant changes to those processes during the three months ended ~~March~~December 31, 2023. See further discussion of our risk monitoring process in “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Credit risk - Banking activities” of our 2023 Form 10-K.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

SBL and residential mortgage loan portfolios

Substantially all collateral securing our SBL portfolio is monitored on a daily basis. Collateral adjustments, as triggered by our monitoring procedures, are made by the borrower as necessary to ensure our loans are adequately secured, resulting in minimizing our credit risk. Collateral calls have been minimal relative to our SBL portfolio with ~~insignificant~~no losses incurred ~~to date.~~during the three months ended December 31, 2023.

We track and review many factors to monitor credit risk in our residential mortgage loan portfolio. The factors include, but are not limited to: loan performance trends, loan product parameters and qualification requirements, borrower credit scores, level of documentation, loan purpose, geographic concentrations, average loan size, risk rating, and LTV ratios. See Note 7 of the Notes to the Condensed Consolidated Financial Statements of this Form 10-Q for additional information about our residential mortgage loan portfolio.

The following table presents a summary of delinquent residential mortgage loans, the vast majority of which are first mortgage loans, which are comprised of loans which are two or more payments past due as well as loans in the process of foreclosure.

Amount of delinquent residential mortgage loans Delinquent residential mortgage loans as a percentage of outstanding residential mortgage loan balances
$ in millions 30-89 days 90 days or more Total 30-89 days 90 days or more Total
March 31, 2023 $ 4 $ 5 $ 9 0.05 % 0.06 % 0.11 %
September 30, 2022 $ 6 $ 6 $ 12 0.08 % 0.08 % 0.16 %


	Amount of delinquent residential mortgage loans						Delinquent residential mortgage loans as a percentage of outstanding residential mortgage loan balances
$ in millions	30-89 days		90 days or more		Total		30-89 days		90 days or more		Total
December 31, 2023	$	5	$	3	$	8	0.06	%	0.03	%	0.09	%
September 30, 2023	$	3	$	4	$	7	0.03	%	0.05	%	0.08	%

Our ~~March~~December 31, 2023 percentage compares favorably to the national average for over 30 day delinquencies of ~~2.03%~~1.88%, as most recently reported by the Fed.

Credit risk is also managed by diversifying the residential mortgage portfolio. Most of the loans in our residential loan portfolio are to PCG clients across the U.S. The following table details the geographic concentrations (top five states) of our one-to-four family residential mortgage loans.

March 31, 2023
Loans outstanding as a % of
total residential mortgage loans held for sale and investment Loans outstanding as a % of
total loans held for sale and investment
CA 25% 5%
FL 17% 3%
TX 8% 2%
NY 8% 1%
CO 4% 1%


	December 31, 2023
	Loans outstanding as a % of total residential mortgage loans held for sale and investment	Loans outstanding as a % of total loans held for sale and investment
California	24%	5%
Florida	18%	4%
Texas	8%	2%
New York	8%	1%
Colorado	4%	1%

The occurrence of a natural disaster or severe weather event in any of these states, for example wildfires in California and hurricanes in Florida, could result in additional credit loss provisions and/or charge-offs on our loans in such states and therefore negatively impact our net income and regulatory capital in any given period.

Loans where borrowers may be subject to payment increases include adjustable rate mortgage loans with terms that initially require payment of interest only. Payments may increase significantly when the interest-only period ends and the loan principal begins to amortize. At ~~March~~December 31, 2023 and September 30, ~~2022,~~2023, these loans totaled ~~$2.71~~$2.87 billion and ~~$2.55~~$2.85 billion, respectively, or approximately ~~34%~~32% and ~~35%~~33% of the residential mortgage portfolio, respectively. The weighted-average number of years before the remainder of the loans, which were still in their interest-only period at ~~March~~December 31, 2023, begins amortizing is six years.

9281


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Corporate and tax-exempt loans

Credit risk in our corporate and tax-exempt loan portfolios is monitored on an individual loan basis. The majority of our tax-exempt loan portfolio is comprised of loans to investment-grade borrowers. Credit risk is managed by diversifying the corporate bank loan portfolio. Our corporate bank loan portfolio does not contain a significant concentration in any single industry. The following table details the industry concentrations (top five categories) of our corporate bank loans.


			March 31, 2023
			Loans outstanding as a % of total corporate bank loans held for sale and investment	Loans outstanding as a % of total loans held for sale and investment
		December 31, 2023							December 31, 2023
		Loans outstanding as a % of total corporate bank loans held for sale and investment					Loans outstanding as a % of total corporate bank loans held for sale and investment			Loans outstanding as a % of total loans held for sale and investment
Multi-family	Multi-family		10%	5%	Multi-family	12%		5%
Industrial warehouse	Industrial warehouse		8%	4%	Industrial warehouse	9%		4%
Office real estate					Office real estate	7%		3%
Loan fund	Loan fund		7%	3%	Loan fund	6%		3%
Office real estate			7%	3%
Consumer products and services			5%	2%
Subscription lines of credit					Subscription lines of credit	5%		2%

The Fed’s measures to control inflation, including through increases in short-term interest rates in prior fiscal years, have had ~~an impact~~a dampening effect on ~~consumer behavior~~the economy. Coupled with the present uncertainty regarding future Fed interest rate cuts, both in terms of timing and ~~are likely~~magnitude, all lead to our expectation that such dampening will continue ~~to do so in the near-term.~~during our fiscal 2024. These and related factors could continue to negatively impact our ~~borrowers, particularly those~~borrowers. We continue to closely monitor economic factors, including inflation, interest rates, and a potential recession, that may impact our corporate loan portfolio, including our CRE portfolio. We continue to maintain conservative underwriting standards for our CRE portfolio, including LTV limits that generally range between 65% to 80% at origination depending upon property type. LTV ratios are subject to change over the life of the loan as property values change. Our underwriting standards for our CRE portfolio, including LTV at origination, may be tightened in ~~consumer-facing industries. In response to changing trends, and industry-wide challenges following~~times of uncertainty. Further, within the ~~COVID-19 pandemic,~~CRE portfolio, we have ~~closely monitored each loan in~~limited our ~~commercial real estate portfolio, particularly~~exposure to office real estate ~~utilizing LTV ratios~~loans to 3% of total loans held for sale and other metrics. We have also focused on reducing our corporate loan exposure in certain sectors with increasing credit concerns, including selling approximately $430 million of loans subsequent to March 31, 2023 through May 5, 2023 at an average sales price of 99% of par value. Additional sales of corporate loans may be made during the remainder of fiscal 2023 to further reduce credit risk in certain sectors.investment. In addition, we ~~plan~~have sold and may continue to ~~be prudent in issuing new~~sell corporate loans ~~for the remainder~~as part of ~~fiscal 2023 as a result of the recent market volatility.~~our credit risk mitigation strategies.

Liquidity risk

See the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and capital resources” of this Form 10-Q for information regarding our liquidity and how we manage liquidity risk.

Operational risk

Operational risk generally refers to the risk of loss resulting from our operations, including, but not limited to, business disruptions, improper or unauthorized execution and processing of transactions, deficiencies in our technology or financial operating systems and inadequacies or breaches in our control processes, including cybersecurity incidents. See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Operational risk” of our ~~2022~~2023 Form 10-K for a discussion of our operational risk and certain of our risk mitigation processes.

Periods of severe market volatility can result in a significantly higher level of transactions on specific days, which may present operational challenges from time to time that may result in losses. These losses can result from, but are not limited to, trade errors, failed transaction settlements, late collateral calls to borrowers and counterparties, or interruptions to our system processing. We did not incur any significant losses related to such operational challenges during the ~~six~~three months ended ~~March~~December 31, 2023.

As more fully described in the discussion of our business technology risks included in various risk factors presented in “Item 1A - Risk Factors” of our ~~2022~~2023 Form 10-K, despite our implementation of protective measures and endeavoring to modify them as circumstances warrant, our computer systems, software and networks may be vulnerable to human error, natural disasters, power loss, cyber-attacks and other information security breaches, and other events that could have an impact on the security and stability of our operations.

Model risk

Model risk refers to the possibility of unintended business outcomes arising from the design, implementation or use of models. See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Model risk” of our ~~2022~~2023 Form 10-K for information regarding how we utilize models throughout the firm and how we manage model risk.

9382


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

Compliance risk

Compliance risk is the risk of legal or regulatory sanctions, financial loss, or reputational damage that the firm may suffer from a failure to comply with applicable laws, external standards, or internal requirements. See “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management - Compliance risk” of our ~~2022~~2023 Form 10-K for information on our compliance risks, including how we manage such risks.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See “Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Risk management” of this Form 10-Q for our quantitative and qualitative disclosures about market risk.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Disclosure controls are procedures designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, such as this report, are recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls are also designed to ensure that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives, as ours are designed to do, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Securities Exchange Act of 1934 Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There were no changes during the three months ended ~~March~~December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Not applicable.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We did not have any sales of unregistered securities for the ~~six~~three months ended ~~March~~December 31, 2023.

We purchase our own stock from time to time in conjunction with a number of activities, each of which is described in the following paragraphs. The following table presents information on our purchases of our own stock, on a monthly basis, for the ~~six~~three months ended ~~March~~December 31, 2023.

Total number of shares
purchased Average price
per share Number of shares purchased as part of publicly announced plans or programs Approximate dollar value (in millions) at each month-end of securities that
may yet be purchased under the plans or programs
October 1, 2022 – October 31, 2022 358,103 $ 105.94 354,313 $800
November 1, 2022 – November 30, 2022 78,798 $ 120.60 — $800
December 1, 2022 – December 31, 2022 937,747 $ 106.64 937,737 $1,400
First quarter 1,374,648 $ 107.26 1,292,050
January 1, 2023 – January 31, 2023 53,430 $ 114.90 — $1,400
February 1, 2023 – February 28, 2023 13,586 $ 113.49 — $1,400
March 1, 2023 – March 31, 2023 3,745,485 $ 93.45 3,745,388 $1,050
Second quarter 3,812,501 $ 93.82 3,745,388
Fiscal year-to-date total 5,187,149 $ 97.38 5,037,438


	Total number of shares purchased	Average price per share		Number of shares purchased as part of publicly announced plans or programs	Approximate dollar value (in millions) at each month-end of securities that may yet be purchased under the plans or programs
October 1, 2023 – October 31, 2023	2,602	$	100.13	—	$750
November 1, 2023 – November 30, 2023	516,466	$	99.63	439,678	$1,500
December 1, 2023 – December 31, 2023	970,735	$	110.03	968,566	$1,393
First quarter	1,489,803	$	106.40	1,408,244

In ~~December 2022,~~November 2023, the Board of Directors authorized repurchase of our common stock in an aggregate amount of up to $1.5 billion, which replaced the previous authorization.

In the preceding table, the total number of shares purchased includes shares purchased pursuant to the Restricted Stock Trust Fund, which was established to acquire our common stock in the open market and used to settle RSUs granted as a retention vehicle for certain employees of our wholly-owned Canadian subsidiaries. For more information on this trust fund, see Note 2 of the Notes to Consolidated Financial Statements of our ~~2022~~2023 Form 10-K and Note 9 of the Notes to Condensed Consolidated Financial Statements of this Form 10-Q. These activities do not utilize the repurchase authorization presented in the preceding table.

The total number of shares purchased also includes shares repurchased as a result of employees surrendering shares as payment for option exercises or withholding taxes. These activities do not utilize the repurchase authorization presented in the preceding table.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

~~None.~~

~~RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES~~

None of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the three months ended December 31, 2023.


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

ITEM 6. EXHIBITS


Exhibit Number			Description
3.1.1			Amended and Restated Articles of Incorporation of Raymond James Financial, Inc. as filed with the Secretary of State of Florida on February 28, 2022, incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on May 9, 2022.
3.1.2			Articles of Amendment to Amended and Restated Articles of Incorporation of Raymond James Financial, Inc. relating to the Raymond James Financial, Inc. 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, $0.10 par value per share, incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement on Form 8-A, filed with the Securities and Exchange Commission on May 31, 2022.
3.1.3			Articles of Amendment to Amended and Restated Articles of Incorporation of Raymond James Financial, Inc. relating to the Raymond James Financial, Inc. 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, $0.10 par value per share, incorporated by reference to Exhibit 3.4 to the Company’s Registration Statement on Form 8-A, filed with the Securities and Exchange Commission on May 31, 2022.
3.2			Amended and Restated By-Laws of Raymond James Financial, Inc., reflecting amendments adopted by the Board of Directors on ~~February~~ ~~24,~~ August 21, 2023 , incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on ~~March 1, 2023.~~
~~10.1~~			~~Raymond James Financial, Inc. Amended~~August 25 ~~and~~ ~~Restated 2012 Stock Incentive Plan (as amended through February 23, 2023)~~, ~~incorporated by reference to Appendix B to the Company’s Definitive Proxy Statement for the Annual Meeting of Shareholders held February 23,~~ 2023 ~~filed with the Securities and Exchange Commission on~~ ~~January 11, 2023.~~
~~10.2~~			~~Amended and Restated Credit Agreement, dated as of April 6, 2023, among Raymond James Financial, Inc., Raymond James & Associates, Inc.,~~ ~~the~~ ~~Lenders party thereto~~ ~~and~~ ~~Bank of America, N.A,~~ ~~incorporated by reference to Exhibit~~ ~~10.1~~ ~~to the~~ ~~Company~~’s ~~Current Report on Form 8-K, filed with the Securities and Exchange Commission on~~ ~~April 12, 2023.~~.
31.1			Certification of Paul C. Reilly pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2			Certification of Paul M. Shoukry pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32			Certification of Paul C. Reilly and Paul M. Shoukry pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH			Inline XBRL Taxonomy Extension Schema Document.
101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104			Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

9685


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management’s Discussion and Analysis						Index

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		RAYMOND JAMES FINANCIAL, INC.
		(Registrant)

Date:	~~May 8, 2023~~February 7, 2024	/s/ Paul C. Reilly
		Paul C. Reilly
		Chair and Chief Executive Officer

Date:	~~May 8, 2023~~February 7, 2024	/s/ Paul M. Shoukry
		Paul M. Shoukry
		Chief Financial Officer

9786


$ in millions, except share count	March 31, 2023		September 30, 2022
6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”):
Shares outstanding	40,250		40,250
Carrying value	$	41	$	41
Aggregate liquidation preference	$	40	$	40
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


	Three months ended				Six months ended
Earnings per common share	March 31, 2023		March 31, 2022		March 31, 2023		March 31, 2022



















Diluted earnings per common share	$	1.93	$	1.52	$	4.23	$	3.61
Impact of non-GAAP adjustments on diluted earnings per common share:
Expenses directly related to acquisitions included in the following financial statement line items:
Compensation, commissions and benefits — Acquisition-related retention	0.08		0.06		0.16		0.12


Professional fees	—		0.02		—		0.03


Other — Amortization of identifiable intangible assets	0.05		0.03		0.10		0.07

All other acquisition-related expenses	—		0.03		—		0.03
Total “Other” expense	0.05		0.06		0.10		0.10
Total expenses related to acquisitions	0.13		0.14		0.26		0.25
Other — Insurance settlement received	—		—		(0.15)		—
Tax effect of non-GAAP adjustments	(0.03)		(0.04)		(0.03)		(0.06)
Total non-GAAP adjustments, net of tax	0.10		0.10		0.08		0.19
Adjusted diluted earnings per common share	$	2.03	$	1.62	$	4.31	$	3.80