x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
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THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
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THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
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to
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Florida
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No. 59-1517485
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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PAGE
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PART I.
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 5.
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Item 6.
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Signatures
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||||
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March 31, 2014
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September 30, 2013
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||||
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(in thousands)
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||||||
Assets:
|
|
|
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||||
Cash and cash equivalents
|
$
|
2,641,876
|
|
|
$
|
2,596,616
|
|
Assets segregated pursuant to regulations and other segregated assets
|
2,555,155
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4,064,827
|
|
||
Securities purchased under agreements to resell and other collateralized financings
|
637,486
|
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709,120
|
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||
Financial instruments, at fair value:
|
|
|
|
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|
||
Trading instruments
|
647,754
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579,705
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||
Available for sale securities
|
646,569
|
|
|
698,844
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|
||
Private equity investments
|
191,401
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|
|
216,391
|
|
||
Other investments
|
218,192
|
|
|
248,512
|
|
||
Derivative instruments associated with offsetting matched book positions
|
289,271
|
|
|
250,341
|
|
||
Receivables:
|
|
|
|
|
|
||
Brokerage clients, net
|
1,989,261
|
|
|
1,983,340
|
|
||
Stock borrowed
|
185,868
|
|
|
146,749
|
|
||
Bank loans, net
|
10,028,101
|
|
|
8,821,201
|
|
||
Brokers-dealers and clearing organizations
|
85,086
|
|
|
243,101
|
|
||
Loans to financial advisors, net
|
417,372
|
|
|
409,080
|
|
||
Other
|
492,221
|
|
|
407,329
|
|
||
Deposits with clearing organizations
|
135,554
|
|
|
126,405
|
|
||
Prepaid expenses and other assets
|
629,390
|
|
|
611,425
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
258,633
|
|
|
272,096
|
|
||
Property and equipment, net
|
244,984
|
|
|
244,416
|
|
||
Deferred income taxes, net
|
216,882
|
|
|
195,160
|
|
||
Goodwill and identifiable intangible assets, net
|
357,846
|
|
|
361,464
|
|
||
Total assets
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$
|
22,868,902
|
|
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$
|
23,186,122
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|
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||||
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March 31, 2014
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September 30, 2013
|
||||
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($ in thousands)
|
||||||
Liabilities and equity:
|
|
|
|
|
|
||
Trading instruments sold but not yet purchased, at fair value
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$
|
200,458
|
|
|
$
|
220,656
|
|
Securities sold under agreements to repurchase
|
377,677
|
|
|
300,933
|
|
||
Derivative instruments associated with offsetting matched book positions, at fair value
|
289,271
|
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|
250,341
|
|
||
Payables:
|
|
|
|
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|
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Brokerage clients
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4,112,420
|
|
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5,942,843
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|
||
Stock loaned
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432,223
|
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354,377
|
|
||
Bank deposits
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10,414,804
|
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9,295,371
|
|
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Brokers-dealers and clearing organizations
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157,059
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|
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109,611
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|
||
Trade and other
|
702,013
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|
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630,344
|
|
||
Other borrowings
|
78,517
|
|
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84,076
|
|
||
Accrued compensation, commissions and benefits
|
649,895
|
|
|
741,787
|
|
||
Loans payable of consolidated variable interest entities
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53,505
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62,938
|
|
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Corporate debt
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1,192,699
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1,194,508
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Total liabilities
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18,660,541
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19,187,785
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||
Commitments and contingencies (see Note 16)
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Equity
|
|
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Preferred stock; $.10 par value; authorized 10,000,000 shares; issued and outstanding -0- shares
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—
|
|
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—
|
|
||
Common stock; $.01 par value; authorized 350,000,000 shares; issued 145,680,145 at March 31, 2014 and 144,559,772 at September 30, 2013
|
1,439
|
|
|
1,429
|
|
||
Additional paid-in capital
|
1,203,966
|
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1,136,298
|
|
||
Retained earnings
|
2,810,190
|
|
|
2,635,026
|
|
||
Treasury stock, at cost; 5,090,046 common shares at March 31, 2014 and 5,002,666 common shares at September 30, 2013
|
(126,057
|
)
|
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(120,555
|
)
|
||
Accumulated other comprehensive income
|
(1,234
|
)
|
|
10,726
|
|
||
Total equity attributable to Raymond James Financial, Inc.
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3,888,304
|
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3,662,924
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|
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Noncontrolling interests
|
320,057
|
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335,413
|
|
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Total equity
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4,208,361
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3,998,337
|
|
||
Total liabilities and equity
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$
|
22,868,902
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|
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$
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23,186,122
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|
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Three months ended March 31,
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Six months ended March 31,
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||||||||||||
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2014
|
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2013
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2014
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2013
|
||||||||
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(in thousands, except per share amounts)
|
||||||||||||||
Revenues:
|
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|
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|
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|
||||||||
Securities commissions and fees
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$
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805,719
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$
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764,989
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$
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1,587,899
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$
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1,503,573
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Investment banking
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67,311
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50,255
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147,108
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135,125
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|
||||
Investment advisory fees
|
88,096
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65,503
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|
181,510
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127,573
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|
||||
Interest
|
118,393
|
|
|
118,032
|
|
|
235,486
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|
|
241,158
|
|
||||
Account and service fees
|
101,024
|
|
|
88,400
|
|
|
194,598
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|
|
176,851
|
|
||||
Net trading profit
|
14,842
|
|
|
8,128
|
|
|
32,993
|
|
|
17,467
|
|
||||
Other
|
9,240
|
|
|
74,991
|
|
|
33,805
|
|
|
106,060
|
|
||||
Total revenues
|
1,204,625
|
|
|
1,170,298
|
|
|
2,413,399
|
|
|
2,307,807
|
|
||||
Interest expense
|
25,980
|
|
|
27,203
|
|
|
51,352
|
|
|
55,224
|
|
||||
Net revenues
|
1,178,645
|
|
|
1,143,095
|
|
|
2,362,047
|
|
|
2,252,583
|
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation, commissions and benefits
|
812,291
|
|
|
763,047
|
|
|
1,617,236
|
|
|
1,525,595
|
|
||||
Communications and information processing
|
69,503
|
|
|
65,018
|
|
|
131,357
|
|
|
125,384
|
|
||||
Occupancy and equipment costs
|
39,897
|
|
|
38,694
|
|
|
79,582
|
|
|
78,172
|
|
||||
Clearance and floor brokerage
|
9,876
|
|
|
11,405
|
|
|
19,830
|
|
|
21,573
|
|
||||
Business development
|
36,667
|
|
|
31,488
|
|
|
68,911
|
|
|
62,117
|
|
||||
Investment sub-advisory fees
|
13,798
|
|
|
8,410
|
|
|
25,597
|
|
|
16,460
|
|
||||
Bank loan loss provision
|
1,979
|
|
|
3,737
|
|
|
3,615
|
|
|
6,660
|
|
||||
Acquisition related expenses
|
—
|
|
|
20,922
|
|
|
—
|
|
|
38,304
|
|
||||
Other
|
41,635
|
|
|
41,071
|
|
|
84,108
|
|
|
71,848
|
|
||||
Total non-interest expenses
|
1,025,646
|
|
|
983,792
|
|
|
2,030,236
|
|
|
1,946,113
|
|
||||
Income including noncontrolling interests and before provision for income taxes
|
152,999
|
|
|
159,303
|
|
|
331,811
|
|
|
306,470
|
|
||||
Provision for income taxes
|
60,904
|
|
|
51,057
|
|
|
123,195
|
|
|
104,330
|
|
||||
Net income including noncontrolling interests
|
92,095
|
|
|
108,246
|
|
|
208,616
|
|
|
202,140
|
|
||||
Net (loss) income attributable to noncontrolling interests
|
(12,465
|
)
|
|
28,286
|
|
|
(12,577
|
)
|
|
36,306
|
|
||||
Net income attributable to Raymond James Financial, Inc.
|
$
|
104,560
|
|
|
$
|
79,960
|
|
|
$
|
221,193
|
|
|
$
|
165,834
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share – basic
|
$
|
0.74
|
|
|
$
|
0.57
|
|
|
$
|
1.57
|
|
|
$
|
1.19
|
|
Net income per common share – diluted
|
$
|
0.72
|
|
|
$
|
0.56
|
|
|
$
|
1.54
|
|
|
$
|
1.17
|
|
Weighted-average common shares outstanding – basic
|
139,888
|
|
|
137,817
|
|
|
139,498
|
|
|
137,156
|
|
||||
Weighted-average common and common equivalent shares outstanding – diluted
|
143,636
|
|
|
140,722
|
|
|
143,065
|
|
|
139,669
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Raymond James Financial, Inc.
|
$
|
104,560
|
|
|
$
|
79,960
|
|
|
$
|
221,193
|
|
|
$
|
165,834
|
|
Other comprehensive income (loss), net of tax:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses
|
3,482
|
|
|
3,606
|
|
|
4,576
|
|
|
13,744
|
|
||||
Change in currency translations and net investment hedges
|
(10,261
|
)
|
|
(4,991
|
)
|
|
(16,536
|
)
|
|
(8,677
|
)
|
||||
Total comprehensive income
|
$
|
97,781
|
|
|
$
|
78,575
|
|
|
$
|
209,233
|
|
|
$
|
170,901
|
|
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total other-than-temporary impairment, net
|
$
|
2,389
|
|
|
$
|
3,364
|
|
|
$
|
3,973
|
|
|
$
|
6,718
|
|
Portion of pre-tax recoveries recognized in other comprehensive income
|
(2,389
|
)
|
|
(3,364
|
)
|
|
(4,000
|
)
|
|
(7,103
|
)
|
||||
Net impairment losses recognized in other revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(27
|
)
|
|
$
|
(385
|
)
|
(1)
|
All components of other comprehensive income, net of tax, are attributable to Raymond James Financial, Inc.
|
|
Six months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in thousands, except per share amounts)
|
||||||
Common stock, par value $.01 per share:
|
|
|
|
||||
Balance, beginning of year
|
$
|
1,429
|
|
|
$
|
1,404
|
|
Other issuances
|
10
|
|
|
20
|
|
||
Balance, end of period
|
1,439
|
|
|
1,424
|
|
||
|
|
|
|
||||
Additional paid-in capital:
|
|
|
|
|
|
||
Balance, beginning of year
|
1,136,298
|
|
|
1,030,288
|
|
||
Employee stock purchases
|
10,002
|
|
|
8,936
|
|
||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
12,747
|
|
|
30,989
|
|
||
Restricted stock, stock option and restricted stock unit expense
|
34,380
|
|
|
31,460
|
|
||
Excess tax benefit from share-based payments
|
9,877
|
|
|
2,512
|
|
||
Other
|
662
|
|
|
173
|
|
||
Balance, end of period
|
1,203,966
|
|
|
1,104,358
|
|
||
|
|
|
|
||||
Retained earnings:
|
|
|
|
|
|
||
Balance, beginning of year
|
2,635,026
|
|
|
2,346,563
|
|
||
Net income attributable to Raymond James Financial, Inc.
|
221,193
|
|
|
165,834
|
|
||
Cash dividends declared
|
(45,733
|
)
|
|
(39,027
|
)
|
||
Other
|
(296
|
)
|
|
(410
|
)
|
||
Balance, end of period
|
2,810,190
|
|
|
2,472,960
|
|
||
|
|
|
|
||||
Treasury stock:
|
|
|
|
|
|
||
Balance, beginning of year
|
(120,555
|
)
|
|
(118,762
|
)
|
||
Purchases/surrenders
|
(2,213
|
)
|
|
(7,841
|
)
|
||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
(3,289
|
)
|
|
4,103
|
|
||
Balance, end of period
|
(126,057
|
)
|
|
(122,500
|
)
|
||
|
|
|
|
||||
Accumulated other comprehensive income:
(1)
|
|
|
|
|
|
||
Balance, beginning of year
|
$
|
10,726
|
|
|
$
|
9,447
|
|
Net change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax
|
4,575
|
|
|
13,744
|
|
||
Net change in currency translations and net investment hedges, net of tax
|
(16,535
|
)
|
|
(8,677
|
)
|
||
Balance, end of period
|
(1,234
|
)
|
|
14,514
|
|
||
Total equity attributable to Raymond James Financial, Inc.
|
$
|
3,888,304
|
|
|
$
|
3,470,756
|
|
|
|
|
|
||||
Noncontrolling interests:
|
|
|
|
|
|
||
Balance, beginning of year
|
$
|
335,413
|
|
|
$
|
411,342
|
|
Net (loss) income attributable to noncontrolling interests
|
(12,577
|
)
|
|
36,306
|
|
||
Capital contributions
|
11,682
|
|
|
14,767
|
|
||
Distributions
|
(14,583
|
)
|
|
(34,627
|
)
|
||
Consolidation of acquired entity
(2)
|
—
|
|
|
7,592
|
|
||
Other
|
122
|
|
|
5,748
|
|
||
Balance, end of period
|
320,057
|
|
|
441,128
|
|
||
Total equity
|
$
|
4,208,361
|
|
|
$
|
3,911,884
|
|
(1)
|
All components of other comprehensive income, net of tax, are attributable to Raymond James Financial, Inc.
|
(2)
|
On
December 24, 2012
, we acquired a
45%
interest in ClariVest Asset Management, LLC. See Notes 1 and 3 for discussion.
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(continued from previous page)
|
|||||||
|
Six months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(in thousands)
|
||||||
|
|
|
|
||||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from borrowed funds, net
|
$
|
367
|
|
|
$
|
180,000
|
|
Repayments of borrowed funds, net
|
(7,829
|
)
|
|
(130,054
|
)
|
||
Repayments of borrowings by consolidated variable interest entities which are real estate partnerships
|
(10,955
|
)
|
|
(11,344
|
)
|
||
Proceeds from capital contributed to and borrowings of consolidated variable interest entities which are real estate partnerships
|
3,335
|
|
|
908
|
|
||
Exercise of stock options and employee stock purchases
|
21,684
|
|
|
44,219
|
|
||
Increase in bank deposits
|
1,119,433
|
|
|
474,638
|
|
||
Purchase of treasury stock
|
(6,212
|
)
|
|
(9,311
|
)
|
||
Dividends on common stock
|
(42,760
|
)
|
|
(37,457
|
)
|
||
Excess tax benefits from share-based payment arrangements
|
9,877
|
|
|
2,512
|
|
||
Net cash provided by financing activities
|
1,086,940
|
|
|
514,111
|
|
||
|
|
|
|
||||
Currency adjustment:
|
|
|
|
|
|
||
Effect of exchange rate changes on cash
|
(12,304
|
)
|
|
(4,711
|
)
|
||
Net increase in cash and cash equivalents
|
45,260
|
|
|
194,129
|
|
||
Cash and cash equivalents at beginning of year
|
2,596,616
|
|
|
1,980,020
|
|
||
Cash and cash equivalents at end of period
|
$
|
2,641,876
|
|
|
$
|
2,174,149
|
|
|
|
|
|
||||
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||
Cash paid for interest
|
$
|
49,750
|
|
|
$
|
53,442
|
|
Cash paid for income taxes
|
$
|
179,488
|
|
|
$
|
83,111
|
|
Non-cash transfers of loans to other real estate owned
|
$
|
2,448
|
|
|
$
|
1,902
|
|
|
Three months ended March 31, 2013
|
|
Six months ended March 31, 2013
|
||||
|
(in thousands)
|
||||||
Information systems integration and conversion costs
(1)
|
$
|
10,381
|
|
|
$
|
22,545
|
|
Severance
(2)
|
5,806
|
|
|
6,205
|
|
||
Temporary services
|
1,389
|
|
|
1,603
|
|
||
Occupancy and equipment costs
(3)
|
708
|
|
|
1,274
|
|
||
Financial advisory fees
|
—
|
|
|
1,176
|
|
||
Legal
|
435
|
|
|
459
|
|
||
Other integration costs
|
2,203
|
|
|
5,042
|
|
||
Total acquisition related expense
|
$
|
20,922
|
|
|
$
|
38,304
|
|
(1)
|
Includes equipment costs related to the disposition of information systems equipment, and temporary services incurred specifically related to the information systems conversion.
|
(2)
|
Represents all costs associated with eliminating positions as a result of the Morgan Keegan acquisition, partially offset by the favorable impact arising from the forfeiture of any unvested accrued benefits.
|
(3)
|
Includes lease costs associated with the abandonment of certain facilities resulting from the Morgan Keegan acquisition.
|
|
March 31,
2014 |
|
September 30,
2013 |
||||
|
(in thousands)
|
||||||
Cash and cash equivalents:
|
|
|
|
||||
Cash in banks
|
$
|
2,630,650
|
|
|
$
|
2,593,890
|
|
Money market fund investments
|
11,226
|
|
|
2,726
|
|
||
Total cash and cash equivalents
(1)
|
2,641,876
|
|
|
2,596,616
|
|
||
Cash segregated pursuant to federal regulations and other segregated assets
(2)
|
2,555,155
|
|
|
4,064,827
|
|
||
Deposits with clearing organizations
(3)
|
135,554
|
|
|
126,405
|
|
||
|
$
|
5,332,585
|
|
|
$
|
6,787,848
|
|
(1)
|
The total amounts presented include cash and cash equivalents of
$1.07 billion
and
$1.02 billion
as of
March 31, 2014
and
September 30, 2013
, respectively, which are either held directly by RJF or are otherwise invested by one of our subsidiaries on behalf of RJF, and are available without restrictions.
|
(2)
|
Consists of cash maintained in accordance with Rule 15c3-3 under the Securities Exchange Act of 1934. RJ&A, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of its’ clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust.
|
(3)
|
Consists of deposits of cash and cash equivalents or other short-term securities held by other clearing organizations or exchanges.
|
March 31, 2014
|
|
Quoted prices
in active
markets for
identical
assets
(Level 1)
(1)
|
|
Significant
other
observable
inputs
(Level 2)
(1)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Netting
adjustments
(2)
|
|
Balance as of
March 31, 2014 |
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Assets at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
4,470
|
|
|
$
|
166,759
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
171,229
|
|
Corporate obligations
|
|
2,582
|
|
|
64,716
|
|
|
—
|
|
|
—
|
|
|
67,298
|
|
|||||
Government and agency obligations
|
|
6,390
|
|
|
54,442
|
|
|
—
|
|
|
—
|
|
|
60,832
|
|
|||||
Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”)
|
|
693
|
|
|
149,871
|
|
|
—
|
|
|
—
|
|
|
150,564
|
|
|||||
Non-agency CMOs and asset-backed securities (“ABS”)
|
|
—
|
|
|
37,692
|
|
|
13
|
|
|
—
|
|
|
37,705
|
|
|||||
Total debt securities
|
|
14,135
|
|
|
473,480
|
|
|
13
|
|
|
—
|
|
|
487,628
|
|
|||||
Derivative contracts
|
|
—
|
|
|
84,607
|
|
|
—
|
|
|
(59,938
|
)
|
|
24,669
|
|
|||||
Equity securities
|
|
57,355
|
|
|
3,846
|
|
|
37
|
|
|
—
|
|
|
61,238
|
|
|||||
Corporate loans
|
|
—
|
|
|
33,074
|
|
|
—
|
|
|
—
|
|
|
33,074
|
|
|||||
Other
|
|
462
|
|
|
37,980
|
|
|
2,703
|
|
|
—
|
|
|
41,145
|
|
|||||
Total trading instruments
|
|
71,952
|
|
|
632,987
|
|
|
2,753
|
|
|
(59,938
|
)
|
|
647,754
|
|
|||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency MBS and CMOs
|
|
—
|
|
|
296,709
|
|
|
—
|
|
|
—
|
|
|
296,709
|
|
|||||
Non-agency CMOs
|
|
—
|
|
|
125,563
|
|
|
38
|
|
|
—
|
|
|
125,601
|
|
|||||
Other securities
|
|
2,084
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,084
|
|
|||||
Auction rate securities (“ARS”):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Municipals
|
|
—
|
|
|
—
|
|
|
109,960
|
|
(3)
|
—
|
|
|
109,960
|
|
|||||
Preferred securities
|
|
—
|
|
|
—
|
|
|
112,215
|
|
|
—
|
|
|
112,215
|
|
|||||
Total available for sale securities
|
|
2,084
|
|
|
422,272
|
|
|
222,213
|
|
|
—
|
|
|
646,569
|
|
|||||
Private equity investments
|
|
—
|
|
|
—
|
|
|
191,401
|
|
(4)
|
—
|
|
|
191,401
|
|
|||||
Other investments
(5)
|
|
215,141
|
|
|
1,263
|
|
|
1,788
|
|
|
—
|
|
|
218,192
|
|
|||||
Derivative instruments associated with offsetting matched book positions
|
|
—
|
|
|
289,271
|
|
|
—
|
|
|
—
|
|
|
289,271
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
|
—
|
|
|
146
|
|
|
—
|
|
|
—
|
|
|
146
|
|
|||||
Other assets
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||||
Total other assets
|
|
—
|
|
|
146
|
|
|
15
|
|
|
—
|
|
|
161
|
|
|||||
Total assets at fair value on a recurring basis
|
|
$
|
289,177
|
|
|
$
|
1,345,939
|
|
|
$
|
418,170
|
|
|
$
|
(59,938
|
)
|
|
$
|
1,993,348
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets at fair value on a nonrecurring basis:
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
39,555
|
|
|
$
|
50,489
|
|
|
$
|
—
|
|
|
$
|
90,044
|
|
Loans held for sale
(7)
|
|
—
|
|
|
1,515
|
|
|
—
|
|
|
—
|
|
|
1,515
|
|
|||||
Total bank loans, net
|
|
—
|
|
|
41,070
|
|
|
50,489
|
|
|
—
|
|
|
91,559
|
|
|||||
Other real estate owned (“OREO”)
(8)
|
|
—
|
|
|
422
|
|
|
—
|
|
|
—
|
|
|
422
|
|
|||||
Total assets at fair value on a nonrecurring basis
|
|
$
|
—
|
|
|
$
|
41,492
|
|
|
$
|
50,489
|
|
|
$
|
—
|
|
|
$
|
91,981
|
|
|
||||||||||||||||||||
(continued on next page)
|
March 31, 2014
|
|
Quoted prices
in active
markets for
identical
assets
(Level 1)
(1)
|
|
Significant
other
observable
inputs
(Level 2)
(1)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Netting
adjustments
(2)
|
|
Balance as of
March 31, 2014 |
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
|
|
(continued from previous page)
|
||||||||||||||||||
Liabilities at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments sold but not yet purchased:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
5,680
|
|
|
$
|
2,008
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,688
|
|
Corporate obligations
|
|
911
|
|
|
22,062
|
|
|
—
|
|
|
—
|
|
|
22,973
|
|
|||||
Government obligations
|
|
147,663
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147,663
|
|
|||||
Agency MBS and CMOs
|
|
209
|
|
|
1,977
|
|
|
—
|
|
|
—
|
|
|
2,186
|
|
|||||
Total debt securities
|
|
154,463
|
|
|
26,047
|
|
|
—
|
|
|
—
|
|
|
180,510
|
|
|||||
Derivative contracts
|
|
—
|
|
|
69,999
|
|
|
—
|
|
|
(64,171
|
)
|
|
5,828
|
|
|||||
Equity securities
|
|
14,050
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
14,120
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
168,513
|
|
|
96,116
|
|
|
—
|
|
|
(64,171
|
)
|
|
200,458
|
|
|||||
Derivative instruments associated with offsetting matched book positions
|
|
—
|
|
|
289,271
|
|
|
—
|
|
|
—
|
|
|
289,271
|
|
|||||
Trade and other payables:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Derivative contracts
|
|
—
|
|
|
662
|
|
|
—
|
|
|
—
|
|
|
662
|
|
|||||
Other liabilities
|
|
—
|
|
|
—
|
|
|
82
|
|
(9)
|
—
|
|
|
82
|
|
|||||
Total trade and other payables
|
|
—
|
|
|
662
|
|
|
82
|
|
|
—
|
|
|
744
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
168,513
|
|
|
$
|
386,049
|
|
|
$
|
82
|
|
|
$
|
(64,171
|
)
|
|
$
|
490,473
|
|
(1)
|
We had
no
transfers of financial instruments from Level 1 to Level 2 during the
three and six months ended March 31, 2014
. We had
no
transfers of financial instruments from Level 2 to Level 1 during the
three and six months ended March 31, 2014
. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
(2)
|
Where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists (see
Note 14
for additional information regarding offsetting financial instruments).
|
(3)
|
Includes
$58 million
of Jefferson County, Alabama Limited Obligation School Warrants ARS.
|
(4)
|
The portion of these investments we do not own is approximately
$55 million
as of
March 31, 2014
and are included as a component of noncontrolling interest in our Condensed Consolidated Statements of Financial Condition. The weighted average portion we own is approximately
$136 million
or
71%
of the total private equity investments of
$191 million
included in our Condensed Consolidated Statements of Financial Condition.
|
(5)
|
Other investments include
$145 million
of financial instruments that are related to MK & Co.’s obligations to perform under certain of its historic deferred compensation plans (see Note 2 on page 119, and Note 23 on page 176, of our 2013 Form 10-K for further information regarding these plans).
|
(6)
|
Goodwill fair value measurements are classified within Level 3 of the fair value hierarchy, which are generally determined using unobservable inputs. See
Note 10
for additional information regarding the annual impairment analysis.
|
(7)
|
Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost.
|
(8)
|
Represents the fair value of foreclosed properties which were measured at a fair value subsequent to their initial classification as OREO. The recorded value in the Condensed Consolidated Statements of Financial Condition is net of the estimated selling costs.
|
(9)
|
Includes forward commitments to purchase GNMA (as hereinafter defined) MBS arising from our fixed income public finance operations (see
Note 16
for additional information regarding these commitments) and to a much lesser extent, other certain commitments.
|
September 30, 2013
|
|
Quoted prices
in active
markets for
identical
assets
(Level 1)
(1)
|
|
Significant
other
observable
inputs
(Level 2)
(1)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Netting
adjustments
(2)
|
|
Balance as of
September 30, 2013 |
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Assets at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
10
|
|
|
$
|
202,816
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
202,826
|
|
Corporate obligations
|
|
833
|
|
|
59,573
|
|
|
—
|
|
|
—
|
|
|
60,406
|
|
|||||
Government and agency obligations
|
|
6,408
|
|
|
106,988
|
|
|
—
|
|
|
—
|
|
|
113,396
|
|
|||||
Agency MBS and CMOs
|
|
155
|
|
|
92,994
|
|
|
—
|
|
|
—
|
|
|
93,149
|
|
|||||
Non-agency CMOs and ABS
|
|
—
|
|
|
16,957
|
|
|
14
|
|
|
—
|
|
|
16,971
|
|
|||||
Total debt securities
|
|
7,406
|
|
|
479,328
|
|
|
14
|
|
|
—
|
|
|
486,748
|
|
|||||
Derivative contracts
|
|
—
|
|
|
89,633
|
|
|
—
|
|
|
(61,524
|
)
|
|
28,109
|
|
|||||
Equity securities
|
|
48,749
|
|
|
4,231
|
|
|
35
|
|
|
—
|
|
|
53,015
|
|
|||||
Other
|
|
1,413
|
|
|
6,464
|
|
|
3,956
|
|
|
—
|
|
|
11,833
|
|
|||||
Total trading instruments
|
|
57,568
|
|
|
579,656
|
|
|
4,005
|
|
|
(61,524
|
)
|
|
579,705
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency MBS and CMOs
|
|
—
|
|
|
326,029
|
|
|
—
|
|
|
—
|
|
|
326,029
|
|
|||||
Non-agency CMOs
|
|
—
|
|
|
128,943
|
|
|
78
|
|
|
—
|
|
|
129,021
|
|
|||||
Other securities
|
|
2,076
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,076
|
|
|||||
ARS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Municipals
|
|
—
|
|
|
—
|
|
|
130,934
|
|
(3)
|
—
|
|
|
130,934
|
|
|||||
Preferred securities
|
|
—
|
|
|
—
|
|
|
110,784
|
|
|
—
|
|
|
110,784
|
|
|||||
Total available for sale securities
|
|
2,076
|
|
|
454,972
|
|
|
241,796
|
|
|
—
|
|
|
698,844
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private equity investments
|
|
—
|
|
|
—
|
|
|
216,391
|
|
(4)
|
—
|
|
|
216,391
|
|
|||||
Other investments
(5)
|
|
241,627
|
|
|
2,278
|
|
|
4,607
|
|
|
—
|
|
|
248,512
|
|
|||||
Derivative instruments associated with offsetting matched book positions
|
|
—
|
|
|
250,341
|
|
|
—
|
|
|
—
|
|
|
250,341
|
|
|||||
Other receivables
|
|
—
|
|
|
—
|
|
|
2,778
|
|
(6)
|
—
|
|
|
2,778
|
|
|||||
Other assets
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||||
Total assets at fair value on a recurring basis
|
|
$
|
301,271
|
|
|
$
|
1,287,247
|
|
|
$
|
469,592
|
|
|
$
|
(61,524
|
)
|
|
$
|
1,996,586
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets at fair value on a nonrecurring basis:
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans, net
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired loans
|
|
—
|
|
|
33,187
|
|
|
59,868
|
|
|
—
|
|
|
93,055
|
|
|||||
Loans held for sale
(8)
|
|
—
|
|
|
28,119
|
|
|
—
|
|
|
—
|
|
|
28,119
|
|
|||||
Total bank loans, net
|
|
—
|
|
|
61,306
|
|
|
59,868
|
|
|
—
|
|
|
121,174
|
|
|||||
OREO
(9)
|
|
—
|
|
|
209
|
|
|
—
|
|
|
—
|
|
|
209
|
|
|||||
Total assets at fair value on a nonrecurring basis
|
|
$
|
—
|
|
|
$
|
61,515
|
|
|
$
|
59,868
|
|
|
$
|
—
|
|
|
$
|
121,383
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(continued on next page)
|
September 30, 2013
|
|
Quoted prices
in active
markets for
identical
assets
(Level 1)
(1)
|
|
Significant
other
observable
inputs
(Level 2)
(1)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Netting
adjustments
(2)
|
|
Balance as of
September 30, 2013 |
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
|
|
(continued from previous page)
|
||||||||||||||||||
Liabilities at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Trading instruments sold but not yet purchased:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Municipal and provincial obligations
|
|
$
|
165
|
|
|
$
|
1,612
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,777
|
|
Corporate obligations
|
|
30
|
|
|
9,081
|
|
|
—
|
|
|
—
|
|
|
9,111
|
|
|||||
Government obligations
|
|
169,816
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
169,816
|
|
|||||
Agency MBS and CMOs
|
|
3,068
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,068
|
|
|||||
Total debt securities
|
|
173,079
|
|
|
10,693
|
|
|
—
|
|
|
—
|
|
|
183,772
|
|
|||||
Derivative contracts
|
|
—
|
|
|
74,920
|
|
|
—
|
|
|
(69,279
|
)
|
|
5,641
|
|
|||||
Equity securities
|
|
31,151
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
31,243
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
204,230
|
|
|
85,705
|
|
|
—
|
|
|
(69,279
|
)
|
|
220,656
|
|
|||||
Derivative instruments associated with offsetting matched book positions
|
|
—
|
|
|
250,341
|
|
|
—
|
|
|
—
|
|
|
250,341
|
|
|||||
Trade and other payables:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
|
—
|
|
|
714
|
|
|
—
|
|
|
—
|
|
|
714
|
|
|||||
Other liabilities
|
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
|||||
Total trade and other payables
|
|
—
|
|
|
714
|
|
|
60
|
|
|
—
|
|
|
774
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
204,230
|
|
|
$
|
336,760
|
|
|
$
|
60
|
|
|
$
|
(69,279
|
)
|
|
$
|
471,771
|
|
(1)
|
We had
$860 thousand
transfers of financial instruments from Level 1 to Level 2 during the year ended
September 30, 2013
. These transfers were a result of a decrease in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had
$401 thousand
in transfers of financial instruments from Level 2 to Level 1 during the year ended
September 30, 2013
. These transfers were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
(2)
|
Where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists (see
Note 14
for additional information regarding offsetting financial instruments).
|
(3)
|
Includes
$54 million
of Jefferson County, Alabama Limited Obligation School Warrants ARS and
$25 million
of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS.
|
(4)
|
Of the total private equity investments, the weighted-average portion we own is approximately
41%
. Effectively, the economics associated with the portions of these investments we do not own become a component of noncontrolling interests on our Condensed Consolidated Statements of Financial Condition, and amounted to approximately
$63 million
of the total as of
September 30, 2013
.
|
(5)
|
Other investments include
$176 million
of financial instruments that are related to obligations to perform under certain of MK & Co.’s historic deferred compensation plans (see Note 2 on page 119, and Note 23 on page 176, of our 2013 Form 10-K for further information regarding these plans).
|
(6)
|
Primarily comprised of forward commitments to purchase GNMA (as hereinafter defined) MBS arising from our fixed income public finance operations (see Note 20 on page 171 of our 2013 Form 10-K for additional information).
|
(7)
|
Goodwill fair value measurements are classified within Level 3 of the fair value hierarchy, which are generally determined using unobservable inputs. See Note 13 on pages 155 - 157 of our 2013 Form 10-K for additional information regarding the annual impairment analysis and our methods of estimating the fair value of reporting units that have an allocation of goodwill, including the key assumptions.
|
(8)
|
Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost.
|
(9)
|
Represents the fair value of foreclosed properties which were measured at a fair value subsequent to their initial classification as OREO. The recorded value in the Condensed Consolidated Statements of Financial Condition is net of the estimated selling costs.
|
Three months ended March 31, 2014 Level 3 assets at fair value
(in thousands) |
|||||||||||||||||||||||||||||||||||||||
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||||||||||||||||||
|
Trading instruments
|
|
Available for sale securities
|
|
Private equity, other investments and other assets
|
|
Payables-
trade and
other
|
||||||||||||||||||||||||||||||||
|
Non-
agency
CMOs &
ABS
|
|
Equity
securities
|
|
Other
|
|
Non-
agency
CMOs
|
|
ARS –
municipals
|
|
ARS -
preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other assets
|
|
Other
liabilities
|
||||||||||||||||||||
Fair value
December 31, 2013
|
$
|
13
|
|
|
$
|
35
|
|
|
$
|
4,199
|
|
|
$
|
46
|
|
|
$
|
108,458
|
|
|
$
|
112,122
|
|
|
$
|
209,977
|
|
|
$
|
1,949
|
|
|
$
|
15
|
|
|
$
|
(1,417
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Included in earnings
|
—
|
|
|
5
|
|
|
(32
|
)
|
|
—
|
|
|
63
|
|
|
44
|
|
|
13
|
|
|
48
|
|
|
—
|
|
|
1,335
|
|
||||||||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
1,849
|
|
|
374
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Purchases and contributions
|
—
|
|
|
23
|
|
|
3,185
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,317
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Sales
|
—
|
|
|
(26
|
)
|
|
(4,649
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Redemptions by issuer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(410
|
)
|
|
(325
|
)
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(5,329
|
)
|
|
(181
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Transfers:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,577
|
)
|
(2)
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Fair value
March 31, 2014
|
$
|
13
|
|
|
$
|
37
|
|
|
$
|
2,703
|
|
|
$
|
38
|
|
|
$
|
109,960
|
|
|
$
|
112,215
|
|
|
$
|
191,401
|
|
|
$
|
1,788
|
|
|
$
|
15
|
|
|
$
|
(82
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
(32
|
)
|
|
$
|
—
|
|
|
$
|
63
|
|
|
$
|
44
|
|
|
$
|
13
|
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
(2)
|
The transfers out of Level 3 were primarily comprised of the portion of private equity investments which do not represent equity investments, whose balances were transferred to cash and cash equivalents or other receivables on our Consolidated Statements of Financial Condition, and whose carrying values approximate fair value.
|
Six months ended March 31, 2014 Level 3 assets at fair value
(in thousands) |
|||||||||||||||||||||||||||||||||||||||||||
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||||||||||||||||||||||
|
Trading instruments
|
|
Available for sale securities
|
|
Private equity, other investments and other assets
|
|
Payables-
trade and
other
|
||||||||||||||||||||||||||||||||||||
|
Non-
agency
CMOs &
ABS
|
|
Equity
securities
|
|
Other
|
|
Non-
agency
CMOs
|
|
ARS –
municipals
|
|
ARS -
preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other receivables
|
|
Other assets
|
|
Other
liabilities
|
||||||||||||||||||||||
Fair value
September 30, 2013
|
$
|
14
|
|
|
$
|
35
|
|
|
$
|
3,956
|
|
|
$
|
78
|
|
|
$
|
130,934
|
|
|
$
|
110,784
|
|
|
$
|
216,391
|
|
|
$
|
4,607
|
|
|
$
|
2,778
|
|
|
$
|
15
|
|
|
$
|
(60
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Included in earnings
|
—
|
|
|
4
|
|
|
(201
|
)
|
|
(27
|
)
|
|
5,584
|
|
|
44
|
|
|
4,781
|
|
(1)
|
73
|
|
|
(2,778
|
)
|
|
—
|
|
|
(22
|
)
|
|||||||||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
938
|
|
|
1,712
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Purchases and contributions
|
—
|
|
|
24
|
|
|
10,448
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,332
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Sales
|
—
|
|
|
(26
|
)
|
|
(11,500
|
)
|
|
—
|
|
|
(370
|
)
|
|
—
|
|
|
(7,076
|
)
|
|
(2,698
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Redemptions by issuer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,126
|
)
|
|
(325
|
)
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Distributions
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
—
|
|
|
(13,450
|
)
|
|
(229
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Transfers:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,577
|
)
|
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Fair value
March 31, 2014
|
$
|
13
|
|
|
$
|
37
|
|
|
$
|
2,703
|
|
|
$
|
38
|
|
|
$
|
109,960
|
|
|
$
|
112,215
|
|
|
$
|
191,401
|
|
|
$
|
1,788
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
(82
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period
|
$
|
20
|
|
|
$
|
4
|
|
|
$
|
(201
|
)
|
|
$
|
(27
|
)
|
|
$
|
938
|
|
|
$
|
1,712
|
|
|
$
|
4,781
|
|
|
$
|
166
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(22
|
)
|
(1)
|
Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of
$4.4 million
which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately
$400 thousand
.
|
(2)
|
Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
(3)
|
The transfers out of Level 3 were primarily comprised of the portion of private equity investments which do not represent equity investments, whose balances were transferred to cash and cash equivalents or other receivables on our Consolidated Statements of Financial Condition, and whose carrying values approximate fair value.
|
Three months ended March 31, 2013 Level 3 assets at fair value
(in thousands) |
|||||||||||||||||||||||||||||||||||||||
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||||||||||||||||||
|
Trading instruments
|
|
Available for sale securities
|
|
Private equity, other investments and other assets
|
|
Payables-
trade and
other
|
||||||||||||||||||||||||||||||||
|
Non-
agency
CMOs &
ABS
|
|
Equity
securities
|
|
Other
|
|
Non-
agency
CMOs
|
|
ARS –
municipals
|
|
ARS -
preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other assets
|
|
Other
liabilities
|
||||||||||||||||||||
Fair value December 31, 2012
|
$
|
18
|
|
|
$
|
19
|
|
|
$
|
6,451
|
|
|
$
|
125
|
|
|
$
|
133,318
|
|
|
$
|
104,976
|
|
|
$
|
329,767
|
|
|
$
|
4,123
|
|
|
$
|
—
|
|
|
$
|
(98
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Included in earnings
|
4
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
63,033
|
|
(1)
|
17
|
|
|
—
|
|
|
—
|
|
||||||||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
310
|
|
|
1,328
|
|
|
1,043
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Purchases and contributions
|
—
|
|
|
—
|
|
|
1,937
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,060
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Sales
|
—
|
|
|
—
|
|
|
(2,005
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Redemptions by issuer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Distributions
|
(5
|
)
|
|
—
|
|
|
(625
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(2,145
|
)
|
|
(108
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Transfers:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Into Level 3
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||||||
Out of Level 3
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Fair value
March 31, 2013
|
$
|
17
|
|
|
$
|
21
|
|
|
$
|
5,723
|
|
|
$
|
420
|
|
|
$
|
134,630
|
|
|
$
|
106,019
|
|
|
$
|
397,715
|
|
|
$
|
3,982
|
|
|
$
|
15
|
|
|
$
|
(98
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
|
$
|
1,328
|
|
|
$
|
1,043
|
|
|
$
|
63,033
|
|
(1)
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of
$20.3 million
which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately
$42.7 million
.
|
(2)
|
Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
Six months ended March 31, 2013
Level 3 assets at fair value
(in thousands)
|
|||||||||||||||||||||||||||||||||||||||||||
Financial assets
|
|
Financial
liabilities
|
|||||||||||||||||||||||||||||||||||||||||
|
Trading instruments
|
Available for sale securities
|
|
Private equity, other investments and other assets
|
|
Payables-trade
and other
|
|||||||||||||||||||||||||||||||||||||
|
Municipal &
provincial
obligations
|
|
Non-
agency
CMOs &
ABS
|
|
Equity
securities
|
|
Other
|
|
Non-
agency
CMOs
|
|
ARS –
municipals |
|
ARS -
preferred securities |
|
Private
equity
investments
|
|
Other
investments
|
|
Other assets
|
|
Other
liabilities
|
||||||||||||||||||||||
Fair value
September 30, 2012
|
$
|
553
|
|
|
$
|
29
|
|
|
$
|
6
|
|
|
$
|
5,850
|
|
|
$
|
249
|
|
|
$
|
123,559
|
|
|
$
|
110,193
|
|
|
$
|
336,927
|
|
|
$
|
4,092
|
|
|
$
|
—
|
|
|
$
|
(98
|
)
|
Total gains (losses) for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Included in earnings
|
—
|
|
|
(4
|
)
|
|
5
|
|
|
(51
|
)
|
|
(335
|
)
|
|
32
|
|
|
1,164
|
|
|
66,421
|
|
(1)
|
53
|
|
|
—
|
|
|
—
|
|
|||||||||||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
533
|
|
|
11,289
|
|
|
2,649
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Purchases,and contributions
|
—
|
|
|
—
|
|
|
44
|
|
|
3,210
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
10,653
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Sales
|
(553
|
)
|
|
—
|
|
|
(36
|
)
|
|
(2,008
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|||||||||||
Redemptions by issuer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
(8,012
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Distributions
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(1,263
|
)
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
(16,286
|
)
|
|
(113
|
)
|
|
—
|
|
|
—
|
|
|||||||||||
Transfers:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Into Level 3
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|||||||||||
Out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Fair value
March 31, 2013
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
21
|
|
|
$
|
5,723
|
|
|
$
|
420
|
|
|
$
|
134,630
|
|
|
$
|
106,019
|
|
|
$
|
397,715
|
|
|
$
|
3,982
|
|
|
$
|
15
|
|
|
$
|
(98
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
3
|
|
|
$
|
(51
|
)
|
|
$
|
(335
|
)
|
|
$
|
11,289
|
|
|
$
|
2,649
|
|
|
$
|
66,421
|
|
(1)
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of
$22.1 million
which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately
$44.3 million
.
|
(2)
|
Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized.
|
For the three months ended March 31, 2014
|
|
Net trading
profit
|
|
Other
revenues
|
||||
|
|
(in thousands)
|
||||||
Total (losses) gains included in revenues
|
|
$
|
(27
|
)
|
|
$
|
1,503
|
|
Change in unrealized (losses) gains for assets held at the end of the reporting period
|
|
$
|
(27
|
)
|
|
$
|
180
|
|
For the six months ended March 31, 2014
|
|
Net trading
profit
|
|
Other
revenues
|
||||
|
|
(in thousands)
|
||||||
Total (losses) gains included in revenues
|
|
$
|
(197
|
)
|
|
$
|
7,655
|
|
Change in unrealized (losses) gains for assets held at the end of the reporting period
|
|
$
|
(177
|
)
|
|
$
|
7,548
|
|
For the three months ended March 31, 2013
|
|
Net trading
profit
|
|
Other
revenues
|
||||
|
|
(in thousands)
|
||||||
Total (losses) gains included in revenues
|
|
$
|
(16
|
)
|
|
$
|
63,059
|
|
Change in unrealized (losses) gains for assets held at the end of the reporting period
|
|
$
|
(19
|
)
|
|
$
|
65,455
|
|
For the six months ended March 31, 2013
|
|
Net trading
profit
|
|
Other
revenues
|
||||
|
|
(in thousands)
|
||||||
Total (losses) gains included in revenues
|
|
$
|
(50
|
)
|
|
$
|
67,335
|
|
Change in unrealized (losses) gains for assets held at the end of the reporting period
|
|
$
|
(30
|
)
|
|
$
|
80,167
|
|
(a)
|
Represents discount rates used when we have determined that market participants would take these discounts into account when pricing the investments.
|
(b)
|
Future interest rates are projected based upon a forward interest rate curve, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment.
|
(c)
|
Assumed year of at least a partial redemption of the outstanding security by the issuer.
|
(d)
|
Represents amounts used when we have determined that market participants would use such multiples when pricing the investments.
|
(e)
|
Represents the projected growth in earnings before interest, taxes, depreciation and amortization (“EBITDA”) utilized in the valuation as compared to the prior periods reported EBITDA.
|
(f)
|
Certain direct private equity investments are valued initially at the transaction price until either our annual review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, when any of which indicate that a change in the carrying values of these investments is appropriate.
|
(g)
|
The valuation techniques used for the impaired corporate loan portfolio as of
March 31, 2014
were appraisals less selling costs for the collateral dependent loans, and either discounted cash flows or distressed enterprise value for the remaining impaired loans that are not collateral dependent.
|
|
|
Quoted prices
in active
markets for
identical
assets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Total estimated fair value
|
|
Carrying amount
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
(1)
|
|
$
|
—
|
|
|
$
|
118,261
|
|
|
$
|
9,743,929
|
|
|
$
|
9,862,190
|
|
|
$
|
9,942,043
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits
|
|
$
|
—
|
|
|
$
|
10,087,853
|
|
|
$
|
330,764
|
|
|
$
|
10,418,617
|
|
|
$
|
10,414,804
|
|
Other borrowings
|
|
$
|
—
|
|
|
$
|
78,517
|
|
|
$
|
—
|
|
|
$
|
78,517
|
|
|
$
|
78,517
|
|
Corporate debt
|
|
$
|
365,400
|
|
|
$
|
956,988
|
|
|
$
|
—
|
|
|
$
|
1,322,388
|
|
|
$
|
1,192,699
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
(1)
|
|
$
|
—
|
|
|
$
|
83,012
|
|
|
$
|
8,614,755
|
|
|
$
|
8,697,767
|
|
|
$
|
8,700,027
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits
|
|
$
|
—
|
|
|
$
|
8,981,996
|
|
|
$
|
320,196
|
|
|
$
|
9,302,192
|
|
|
$
|
9,295,371
|
|
Other borrowings
|
|
$
|
—
|
|
|
$
|
84,076
|
|
|
$
|
—
|
|
|
$
|
84,076
|
|
|
$
|
84,076
|
|
Corporate debt
|
|
$
|
352,520
|
|
|
$
|
951,628
|
|
|
$
|
—
|
|
|
$
|
1,304,148
|
|
|
$
|
1,194,508
|
|
(1)
|
Excludes all impaired loans and loans held for sale which have been recorded at fair value in the Condensed Consolidated Statement of Financial Condition at
March 31, 2014
and
September 30, 2013
, respectively.
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||
|
Trading
instruments
|
|
Instruments
sold but not
yet purchased
|
|
Trading
instruments
|
|
Instruments
sold but not
yet purchased
|
||||||||
|
(in thousands)
|
||||||||||||||
Municipal and provincial obligations
|
$
|
171,229
|
|
|
$
|
7,688
|
|
|
$
|
202,826
|
|
|
$
|
1,777
|
|
Corporate obligations
|
67,298
|
|
|
22,973
|
|
|
60,406
|
|
|
9,111
|
|
||||
Government and agency obligations
|
60,832
|
|
|
147,663
|
|
|
113,396
|
|
|
169,816
|
|
||||
Agency MBS and CMOs
|
150,564
|
|
|
2,186
|
|
|
93,149
|
|
|
3,068
|
|
||||
Non-agency CMOs and ABS
|
37,705
|
|
|
—
|
|
|
16,971
|
|
|
—
|
|
||||
Total debt securities
|
487,628
|
|
|
180,510
|
|
|
486,748
|
|
|
183,772
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Derivative contracts
(1)
|
24,669
|
|
|
5,828
|
|
|
28,109
|
|
|
5,641
|
|
||||
Equity securities
|
61,238
|
|
|
14,120
|
|
|
53,015
|
|
|
31,243
|
|
||||
Corporate loans
|
33,074
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
41,145
|
|
|
—
|
|
|
11,833
|
|
|
—
|
|
||||
Total
|
$
|
647,754
|
|
|
$
|
200,458
|
|
|
$
|
579,705
|
|
|
$
|
220,656
|
|
(1)
|
Represents the derivative contracts held for trading purposes. These balances do not include all derivative instruments since the derivative instruments associated with offsetting matched book positions are included on their own line item on our Condensed Consolidated Statements of Financial Condition. See
Note 13
for further information regarding all of our derivative transactions, and see Note 14 for additional information regarding offsetting financial instruments.
|
|
Cost basis
|
|
Gross
unrealized gains
|
|
Gross
unrealized losses
|
|
Fair value
|
||||||||
|
(in thousands)
|
||||||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
||||||||
Agency MBS and CMOs
|
$
|
297,575
|
|
|
$
|
570
|
|
|
$
|
(1,436
|
)
|
|
$
|
296,709
|
|
Non-agency CMOs
(1)
|
133,977
|
|
|
138
|
|
|
(8,514
|
)
|
|
125,601
|
|
||||
Other securities
|
1,575
|
|
|
509
|
|
|
—
|
|
|
2,084
|
|
||||
Total RJ Bank available for sale securities
|
433,127
|
|
|
1,217
|
|
|
(9,950
|
)
|
|
424,394
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Auction rate securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal obligations
|
103,459
|
|
|
7,461
|
|
|
(960
|
)
|
|
109,960
|
|
||||
Preferred securities
|
104,527
|
|
|
7,688
|
|
|
—
|
|
|
112,215
|
|
||||
Total auction rate securities
|
207,986
|
|
|
15,149
|
|
|
(960
|
)
|
|
222,175
|
|
||||
Total available for sale securities
|
$
|
641,113
|
|
|
$
|
16,366
|
|
|
$
|
(10,910
|
)
|
|
$
|
646,569
|
|
|
|
|
|
|
|
|
|
||||||||
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agency MBS and CMOs
|
$
|
326,858
|
|
|
$
|
707
|
|
|
$
|
(1,536
|
)
|
|
$
|
326,029
|
|
Non-agency CMOs
(2)
|
142,169
|
|
|
4
|
|
|
(13,152
|
)
|
|
129,021
|
|
||||
Other securities
|
1,575
|
|
|
501
|
|
|
—
|
|
|
2,076
|
|
||||
Total RJ Bank available for sale securities
|
470,602
|
|
|
1,212
|
|
|
(14,688
|
)
|
|
457,126
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Auction rate securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal obligations
|
125,371
|
|
|
6,831
|
|
|
(1,268
|
)
|
|
130,934
|
|
||||
Preferred securities
|
104,808
|
|
|
5,976
|
|
|
—
|
|
|
110,784
|
|
||||
Total auction rate securities
|
230,179
|
|
|
12,807
|
|
|
(1,268
|
)
|
|
241,718
|
|
||||
Total available for sale securities
|
$
|
700,781
|
|
|
$
|
14,019
|
|
|
$
|
(15,956
|
)
|
|
$
|
698,844
|
|
(1)
|
As of
March 31, 2014
, the non-credit portion of other-than-temporary impairment (“OTTI”) recorded in AOCI was
$7.1 million
(before taxes).
|
(2)
|
As of
September 30, 2013
, the non-credit portion of OTTI recorded in AOCI was
$11.1 million
(before taxes).
|
|
March 31, 2014
|
||||||||||||||||||
|
Within one year
|
|
After one but
within five
years
|
|
After five but
within ten
years
|
|
After ten years
|
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Agency MBS & CMOs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
|
$
|
9,588
|
|
|
$
|
17,284
|
|
|
$
|
270,703
|
|
|
$
|
297,575
|
|
Carrying value
|
—
|
|
|
9,615
|
|
|
17,366
|
|
|
269,728
|
|
|
296,709
|
|
|||||
Weighted-average yield
|
—
|
|
|
0.21
|
%
|
|
0.24
|
%
|
|
1.00
|
%
|
|
0.93
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-agency CMOs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
133,977
|
|
|
$
|
133,977
|
|
Carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
125,601
|
|
|
125,601
|
|
|||||
Weighted-average yield
|
—
|
|
|
—
|
|
|
—
|
|
|
2.50
|
%
|
|
2.50
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,575
|
|
|
$
|
1,575
|
|
Carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
2,084
|
|
|
2,084
|
|
|||||
Weighted-average yield
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sub-total agency MBS & CMOs, non-agency CMOs, and other securities:
|
|
|
|
|
|
|
|||||||||||||
Amortized cost
|
$
|
—
|
|
|
$
|
9,588
|
|
|
$
|
17,284
|
|
|
$
|
406,255
|
|
|
$
|
433,127
|
|
Carrying value
|
—
|
|
|
9,615
|
|
|
17,366
|
|
|
397,413
|
|
|
424,394
|
|
|||||
Weighted-average yield
|
—
|
|
|
0.21
|
%
|
|
0.24
|
%
|
|
1.47
|
%
|
|
1.39
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Auction rate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Municipal obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
1,925
|
|
|
$
|
6,600
|
|
|
$
|
94,934
|
|
|
$
|
103,459
|
|
Carrying value
|
—
|
|
|
1,973
|
|
|
6,302
|
|
|
101,685
|
|
|
109,960
|
|
|||||
Weighted-average yield
|
—
|
|
|
0.19
|
%
|
|
0.27
|
%
|
|
0.38
|
%
|
|
0.37
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
104,527
|
|
|
$
|
104,527
|
|
Carrying value
|
—
|
|
|
—
|
|
|
—
|
|
|
112,215
|
|
|
112,215
|
|
|||||
Weighted-average yield
|
—
|
|
|
—
|
|
|
—
|
|
|
0.24
|
%
|
|
0.24
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Sub-total auction rate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
1,925
|
|
|
$
|
6,600
|
|
|
$
|
199,461
|
|
|
$
|
207,986
|
|
Carrying value
|
—
|
|
|
1,973
|
|
|
6,302
|
|
|
213,900
|
|
|
222,175
|
|
|||||
Weighted-average yield
|
—
|
|
|
0.19
|
%
|
|
0.27
|
%
|
|
0.31
|
%
|
|
0.31
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
11,513
|
|
|
$
|
23,884
|
|
|
$
|
605,716
|
|
|
$
|
641,113
|
|
Carrying value
|
—
|
|
|
11,588
|
|
|
23,668
|
|
|
611,313
|
|
|
646,569
|
|
|||||
Weighted-average yield
|
—
|
|
|
0.21
|
%
|
|
0.25
|
%
|
|
1.07
|
%
|
|
1.02
|
%
|
|
March 31, 2014
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Agency MBS and CMOs
|
$
|
110,745
|
|
|
$
|
(728
|
)
|
|
$
|
57,358
|
|
|
$
|
(708
|
)
|
|
$
|
168,103
|
|
|
$
|
(1,436
|
)
|
Non-agency CMOs
|
4,613
|
|
|
(287
|
)
|
|
85,793
|
|
|
(8,227
|
)
|
|
90,406
|
|
|
(8,514
|
)
|
||||||
ARS municipal obligations
|
3,254
|
|
|
(210
|
)
|
|
18,373
|
|
|
(750
|
)
|
|
21,627
|
|
|
(960
|
)
|
||||||
Total
|
$
|
118,612
|
|
|
$
|
(1,225
|
)
|
|
$
|
161,524
|
|
|
$
|
(9,685
|
)
|
|
$
|
280,136
|
|
|
$
|
(10,910
|
)
|
|
September 30, 2013
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Agency MBS and CMOs
|
$
|
157,580
|
|
|
$
|
(1,150
|
)
|
|
$
|
22,940
|
|
|
$
|
(386
|
)
|
|
$
|
180,520
|
|
|
$
|
(1,536
|
)
|
Non-agency CMOs
|
4,906
|
|
|
(556
|
)
|
|
123,139
|
|
|
(12,596
|
)
|
|
128,045
|
|
|
(13,152
|
)
|
||||||
ARS municipal obligations
|
771
|
|
|
(100
|
)
|
|
19,747
|
|
|
(1,168
|
)
|
|
20,518
|
|
|
(1,268
|
)
|
||||||
Total
|
$
|
163,257
|
|
|
$
|
(1,806
|
)
|
|
$
|
165,826
|
|
|
$
|
(14,150
|
)
|
|
$
|
329,083
|
|
|
$
|
(15,956
|
)
|
(1)
|
Represents the expected activity for the next twelve months.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Amount related to credit losses on securities we held at the beginning of the period
|
$
|
28,244
|
|
|
$
|
27,966
|
|
|
$
|
28,217
|
|
|
$
|
27,581
|
|
Additional increases to the amount related to credit loss for which an OTTI was previously recognized
|
—
|
|
|
—
|
|
|
27
|
|
|
385
|
|
||||
Amount related to credit losses on securities we held at the end of the period
|
$
|
28,244
|
|
|
$
|
27,966
|
|
|
$
|
28,244
|
|
|
$
|
27,966
|
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||
|
Balance
|
|
%
|
|
Balance
|
|
%
|
||||||
|
($ in thousands)
|
||||||||||||
Loans held for sale, net
(1)
|
$
|
122,256
|
|
|
1
|
%
|
|
$
|
110,292
|
|
|
1
|
%
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
||
Domestic:
|
|
|
|
|
|
|
|
||||||
C&I loans
|
4,946,263
|
|
|
49
|
%
|
|
4,439,668
|
|
|
50
|
%
|
||
CRE construction loans
|
47,334
|
|
|
—
|
|
|
38,964
|
|
|
—
|
|
||
CRE loans
|
1,327,095
|
|
|
13
|
%
|
|
1,075,986
|
|
|
12
|
%
|
||
Residential mortgage loans
|
1,739,652
|
|
|
17
|
%
|
|
1,743,787
|
|
|
20
|
%
|
||
SBL and other consumer loans
|
771,092
|
|
|
8
|
%
|
|
554,210
|
|
|
6
|
%
|
||
Foreign:
|
|
|
|
|
|
|
|
||||||
C&I loans
|
1,001,116
|
|
|
9
|
%
|
|
806,337
|
|
|
9
|
%
|
||
CRE construction loans
|
59,362
|
|
|
1
|
%
|
|
21,876
|
|
|
—
|
|
||
CRE loans
|
186,913
|
|
|
2
|
%
|
|
207,060
|
|
|
2
|
%
|
||
Residential mortgage loans
|
2,264
|
|
|
—
|
|
|
1,863
|
|
|
—
|
|
||
SBL and other consumer loans
|
1,883
|
|
|
—
|
|
|
1,595
|
|
|
—
|
|
||
Total loans held for investment
|
10,082,974
|
|
|
|
|
|
8,891,346
|
|
|
|
|
||
Net unearned income and deferred expenses
|
(39,189
|
)
|
|
|
|
|
(43,936
|
)
|
|
|
|
||
Total loans held for investment, net
(1)
|
10,043,785
|
|
|
|
|
|
8,847,410
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Total loans held for sale and investment
|
10,166,041
|
|
|
100
|
%
|
|
8,957,702
|
|
|
100
|
%
|
||
Allowance for loan losses
|
(137,940
|
)
|
|
|
|
|
(136,501
|
)
|
|
|
|
||
Bank loans, net
|
$
|
10,028,101
|
|
|
|
|
|
$
|
8,821,201
|
|
|
|
|
(1)
|
Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
|
Purchases
|
|
Sales
|
|
Purchases
|
|
Sales
|
|
Purchases
|
|
Sales
|
|
Purchases
|
|
Sales
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
C&I loans
|
$
|
110,406
|
|
|
$
|
70,350
|
|
|
$
|
65,525
|
|
|
$
|
74,279
|
|
|
$
|
237,736
|
|
|
$
|
131,323
|
|
|
$
|
104,799
|
|
|
$
|
90,818
|
|
Residential mortgage loans
|
140
|
|
|
—
|
|
|
2,153
|
|
|
—
|
|
|
27,735
|
|
|
—
|
|
|
4,563
|
|
|
—
|
|
||||||||
Total
|
$
|
110,546
|
|
|
$
|
70,350
|
|
|
$
|
67,678
|
|
|
$
|
74,279
|
|
|
$
|
265,471
|
|
|
$
|
131,323
|
|
|
$
|
109,362
|
|
|
$
|
90,818
|
|
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
($ in thousands)
|
||||||
Nonaccrual loans:
|
|
|
|
||||
C&I loans
|
$
|
—
|
|
|
$
|
89
|
|
CRE loans
|
24,324
|
|
|
25,512
|
|
||
Residential mortgage loans:
|
|
|
|
|
|
||
First mortgage loans
|
69,732
|
|
|
75,889
|
|
||
Home equity loans/lines
|
408
|
|
|
468
|
|
||
Total nonaccrual loans
|
94,464
|
|
|
101,958
|
|
||
|
|
|
|
||||
Real estate owned and other repossessed assets, net:
|
|
|
|
|
|
||
Residential first mortgage
|
2,968
|
|
|
2,434
|
|
||
Total nonperforming assets, net
|
$
|
97,432
|
|
|
$
|
104,392
|
|
Total nonperforming assets, net as a % of RJ Bank total assets
|
0.83
|
%
|
|
0.99
|
%
|
|
30-59
days
|
|
60-89
days
|
|
90 days
or more
|
|
Total
past due
|
|
Current
(1)
|
|
Total loans held for
investment
(2)
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
As of March 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
$
|
—
|
|
|
$
|
128
|
|
|
$
|
—
|
|
|
$
|
128
|
|
|
$
|
5,947,251
|
|
|
$
|
5,947,379
|
|
CRE construction loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106,696
|
|
|
106,696
|
|
||||||
CRE loans
|
—
|
|
|
—
|
|
|
10,320
|
|
|
10,320
|
|
|
1,503,688
|
|
|
1,514,008
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First mortgage loans
|
3,766
|
|
|
946
|
|
|
40,086
|
|
|
44,798
|
|
|
1,675,444
|
|
|
1,720,242
|
|
||||||
Home equity loans/lines
|
—
|
|
|
—
|
|
|
148
|
|
|
148
|
|
|
21,526
|
|
|
21,674
|
|
||||||
SBL and other consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
772,975
|
|
|
772,975
|
|
||||||
Total loans held for investment, net
|
$
|
3,766
|
|
|
$
|
1,074
|
|
|
$
|
50,554
|
|
|
$
|
55,394
|
|
|
$
|
10,027,580
|
|
|
$
|
10,082,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of September 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
$
|
135
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
135
|
|
|
$
|
5,245,870
|
|
|
$
|
5,246,005
|
|
CRE construction loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,840
|
|
|
60,840
|
|
||||||
CRE loans
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|
1,283,029
|
|
|
1,283,046
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First mortgage loans
|
4,756
|
|
|
2,068
|
|
|
43,004
|
|
|
49,828
|
|
|
1,673,619
|
|
|
1,723,447
|
|
||||||
Home equity loans/lines
|
—
|
|
|
—
|
|
|
372
|
|
|
372
|
|
|
21,831
|
|
|
22,203
|
|
||||||
SBL and other consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
555,805
|
|
|
555,805
|
|
||||||
Total loans held for investment, net
|
$
|
4,891
|
|
|
$
|
2,068
|
|
|
$
|
43,393
|
|
|
$
|
50,352
|
|
|
$
|
8,840,994
|
|
|
$
|
8,891,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes
$42 million
and
$55.5 million
of nonaccrual loans at
March 31, 2014
and
September 30, 2013
, respectively, which are performing pursuant to their contractual terms.
|
(2)
|
Excludes any net unearned income and deferred expenses.
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||||||||||
|
Gross
recorded
investment
|
|
Unpaid
principal
balance
|
|
Allowance
for losses
|
|
Gross
recorded
investment
|
|
Unpaid
principal
balance
|
|
Allowance
for losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Impaired loans with allowance for loan losses:
(1)
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C&I loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
CRE loans
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
26
|
|
|
1
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First mortgage loans
|
48,343
|
|
|
69,352
|
|
|
5,498
|
|
|
52,624
|
|
|
77,240
|
|
|
6,646
|
|
||||||
Home equity loans/lines
|
36
|
|
|
74
|
|
|
3
|
|
|
36
|
|
|
74
|
|
|
4
|
|
||||||
Total
|
48,379
|
|
|
69,426
|
|
|
5,501
|
|
|
52,677
|
|
|
77,340
|
|
|
6,651
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired loans without allowance for loan losses:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
C&I loans
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
94
|
|
|
—
|
|
||||||
CRE loans
|
24,324
|
|
|
44,575
|
|
|
—
|
|
|
25,495
|
|
|
45,229
|
|
|
—
|
|
||||||
Residential - first mortgage loans
|
22,842
|
|
|
35,016
|
|
|
—
|
|
|
21,445
|
|
|
32,617
|
|
|
—
|
|
||||||
Total
|
47,166
|
|
|
79,591
|
|
|
—
|
|
|
47,029
|
|
|
77,940
|
|
|
—
|
|
||||||
Total impaired loans
|
$
|
95,545
|
|
|
$
|
149,017
|
|
|
$
|
5,501
|
|
|
$
|
99,706
|
|
|
$
|
155,280
|
|
|
$
|
6,651
|
|
(1)
|
Impaired loan balances have had reserves established based upon management’s analysis.
|
(2)
|
When the discounted cash flow, collateral value or market value equals or exceeds the carrying value of the loan, then the loan does not require an allowance. These are generally loans in process of foreclosure that have already been adjusted to fair value.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Average impaired loan balance:
|
|
|
|
|
|
|
|
||||||||
C&I loans
|
$
|
—
|
|
|
$
|
22,504
|
|
|
$
|
35
|
|
|
$
|
20,877
|
|
CRE loans
|
24,702
|
|
|
4,879
|
|
|
24,949
|
|
|
6,577
|
|
||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
||||||
First mortgage loans
|
71,277
|
|
|
79,025
|
|
|
71,818
|
|
|
80,008
|
|
||||
Home equity loans/lines
|
36
|
|
|
127
|
|
|
36
|
|
|
128
|
|
||||
Total
|
$
|
96,015
|
|
|
$
|
106,535
|
|
|
$
|
96,838
|
|
|
$
|
107,590
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income recognized:
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
||||||
First mortgage loans
|
$
|
391
|
|
|
$
|
330
|
|
|
$
|
1,027
|
|
|
$
|
661
|
|
Home equity loans/lines
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
Total
|
$
|
391
|
|
|
$
|
331
|
|
|
$
|
1,027
|
|
|
$
|
663
|
|
|
Number of
contracts
|
|
Pre-modification
outstanding
recorded
investment
|
|
Post-modification
outstanding
recorded
investment
|
|||||
|
($ in thousands)
|
|||||||||
Three months ended March 31, 2014
|
|
|
|
|
|
|
|
|
||
Residential – first mortgage loans
|
4
|
|
|
$
|
654
|
|
|
$
|
702
|
|
|
|
|
|
|
|
|||||
Three months ended March 31, 2013
|
|
|
|
|
|
|
|
|
||
Residential – first mortgage loans
|
1
|
|
|
$
|
662
|
|
|
$
|
662
|
|
|
|
|
|
|
|
|||||
Six months ended March 31, 2014
|
|
|
|
|
|
|
|
|
||
Residential – first mortgage loans
|
12
|
|
|
$
|
2,539
|
|
|
$
|
2,699
|
|
|
|
|
|
|
|
|||||
Six months ended March 31, 2013
|
|
|
|
|
|
|
|
|
||
Residential – first mortgage loans
|
44
|
|
|
$
|
14,953
|
|
|
$
|
14,893
|
|
|
|
|
|
|
|
|
Residential mortgage
|
|
|
|
|
||||||||||||||||
|
C&I
|
|
CRE
construction
|
|
CRE
|
|
First
mortgage
|
|
Home
equity
|
|
SBL and other consumer
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass
|
$
|
5,878,566
|
|
|
$
|
106,696
|
|
|
$
|
1,489,291
|
|
|
$
|
1,627,759
|
|
|
$
|
21,252
|
|
|
$
|
772,975
|
|
|
$
|
9,896,539
|
|
Special mention
(1)
|
42,444
|
|
|
—
|
|
|
193
|
|
|
19,455
|
|
|
14
|
|
|
—
|
|
|
62,106
|
|
|||||||
Substandard
(1)
|
26,369
|
|
|
—
|
|
|
22,491
|
|
|
73,028
|
|
|
408
|
|
|
—
|
|
|
122,296
|
|
|||||||
Doubtful
(1)
|
—
|
|
|
—
|
|
|
2,033
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,033
|
|
|||||||
Total
|
$
|
5,947,379
|
|
|
$
|
106,696
|
|
|
$
|
1,514,008
|
|
|
$
|
1,720,242
|
|
|
$
|
21,674
|
|
|
$
|
772,975
|
|
|
$
|
10,082,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pass
|
$
|
5,012,786
|
|
|
$
|
60,840
|
|
|
$
|
1,257,130
|
|
|
$
|
1,627,090
|
|
|
$
|
21,582
|
|
|
$
|
555,805
|
|
|
$
|
8,535,233
|
|
Special mention
(1)
|
139,159
|
|
|
—
|
|
|
195
|
|
|
18,912
|
|
|
150
|
|
|
—
|
|
|
158,416
|
|
|||||||
Substandard
(1)
|
94,060
|
|
|
—
|
|
|
23,524
|
|
|
77,446
|
|
|
470
|
|
|
—
|
|
|
195,500
|
|
|||||||
Doubtful
(1)
|
—
|
|
|
—
|
|
|
2,197
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,197
|
|
|||||||
Total
|
$
|
5,246,005
|
|
|
$
|
60,840
|
|
|
$
|
1,283,046
|
|
|
$
|
1,723,448
|
|
|
$
|
22,202
|
|
|
$
|
555,805
|
|
|
$
|
8,891,346
|
|
(1)
|
Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans.
|
|
Balance
(1)
|
||
|
(in thousands)
|
||
LTV range:
|
|
||
LTV less than 50%
|
$
|
418,435
|
|
LTV greater than 50% but less than 80%
|
766,830
|
|
|
LTV greater than 80% but less than 100%
|
249,090
|
|
|
LTV greater than 100%, but less than 120%
|
46,450
|
|
|
LTV greater than 120% but less than 140%
|
7,356
|
|
|
LTV greater than 140%
|
1,460
|
|
|
Total
|
$
|
1,489,621
|
|
(1)
|
Excludes loans that have full repurchase recourse for any delinquent loans.
|
|
|
Loans held for investment
|
|
|
||||||||||||||||||||
|
|
C&I
|
|
CRE
construction
|
|
CRE
|
|
Residential
mortgage
|
|
SBL and other consumer
|
|
Total
|
||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||
Three months ended March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
|
$
|
96,629
|
|
|
$
|
1,647
|
|
|
$
|
20,210
|
|
|
$
|
18,300
|
|
|
$
|
1,338
|
|
|
$
|
138,124
|
|
Provision (benefit) for loan losses
|
|
1,113
|
|
|
169
|
|
|
2,133
|
|
|
(1,641
|
)
|
|
205
|
|
|
1,979
|
|
||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Charge-offs
|
|
(1,805
|
)
|
|
—
|
|
|
—
|
|
|
(670
|
)
|
|
—
|
|
|
(2,475
|
)
|
||||||
Recoveries
|
|
12
|
|
|
—
|
|
|
—
|
|
|
625
|
|
|
6
|
|
|
643
|
|
||||||
Net (charge-offs)/recoveries
|
|
(1,793
|
)
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
6
|
|
|
(1,832
|
)
|
||||||
Foreign exchange translation adjustment
|
|
(247
|
)
|
|
(17
|
)
|
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
(331
|
)
|
||||||
Balance at March 31, 2014
|
|
$
|
95,702
|
|
|
$
|
1,799
|
|
|
$
|
22,276
|
|
|
$
|
16,614
|
|
|
$
|
1,549
|
|
|
$
|
137,940
|
|
Six months ended March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
$
|
95,994
|
|
|
$
|
1,000
|
|
|
$
|
19,266
|
|
|
$
|
19,126
|
|
|
$
|
1,115
|
|
|
$
|
136,501
|
|
Provision (benefit) for loan losses
|
|
2,015
|
|
|
824
|
|
|
3,062
|
|
|
(2,702
|
)
|
|
416
|
|
|
3,615
|
|
||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Charge-offs
|
|
(1,845
|
)
|
|
—
|
|
|
—
|
|
|
(879
|
)
|
|
—
|
|
|
(2,724
|
)
|
||||||
Recoveries
|
|
16
|
|
|
—
|
|
|
80
|
|
|
1,069
|
|
|
18
|
|
|
1,183
|
|
||||||
Net (charge-offs)/recoveries
|
|
(1,829
|
)
|
|
—
|
|
|
80
|
|
|
190
|
|
|
18
|
|
|
(1,541
|
)
|
||||||
Foreign exchange translation adjustment
|
|
(478
|
)
|
|
(25
|
)
|
|
(132
|
)
|
|
—
|
|
|
—
|
|
|
(635
|
)
|
||||||
Balance at March 31, 2014
|
|
$
|
95,702
|
|
|
$
|
1,799
|
|
|
$
|
22,276
|
|
|
$
|
16,614
|
|
|
$
|
1,549
|
|
|
$
|
137,940
|
|
Three months ended March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
|
$
|
96,010
|
|
|
$
|
874
|
|
|
$
|
27,232
|
|
|
$
|
23,073
|
|
|
$
|
832
|
|
|
$
|
148,021
|
|
Provision (benefit) for loan losses
|
|
3,248
|
|
|
148
|
|
|
998
|
|
|
(762
|
)
|
|
105
|
|
|
3,737
|
|
||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Charge-offs
|
|
(460
|
)
|
|
—
|
|
|
—
|
|
|
(1,858
|
)
|
|
(75
|
)
|
|
(2,393
|
)
|
||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
529
|
|
|
508
|
|
|
8
|
|
|
1,045
|
|
||||||
Net (charge-offs)/recoveries
|
|
(460
|
)
|
|
—
|
|
|
529
|
|
|
(1,350
|
)
|
|
(67
|
)
|
|
(1,348
|
)
|
||||||
Foreign exchange translation adjustment
|
|
(91
|
)
|
|
(6
|
)
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
(124
|
)
|
||||||
Balance at March 31, 2013
|
|
$
|
98,707
|
|
|
$
|
1,016
|
|
|
$
|
28,732
|
|
|
$
|
20,961
|
|
|
$
|
870
|
|
|
$
|
150,286
|
|
Six months ended March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of year
|
|
$
|
92,409
|
|
|
$
|
739
|
|
|
$
|
27,546
|
|
|
$
|
26,138
|
|
|
$
|
709
|
|
|
$
|
147,541
|
|
Provision (benefit) for loan losses
|
|
6,984
|
|
|
287
|
|
|
154
|
|
|
(988
|
)
|
|
223
|
|
|
6,660
|
|
||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Charge-offs
|
|
(550
|
)
|
|
—
|
|
|
—
|
|
|
(5,066
|
)
|
|
(75
|
)
|
|
(5,691
|
)
|
||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
1,073
|
|
|
877
|
|
|
13
|
|
|
1,963
|
|
||||||
Net (charge-offs)/recoveries
|
|
(550
|
)
|
|
—
|
|
|
1,073
|
|
|
(4,189
|
)
|
|
(62
|
)
|
|
(3,728
|
)
|
||||||
Foreign exchange translation adjustment
|
|
(136
|
)
|
|
(10
|
)
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
(187
|
)
|
||||||
Balance at March 31, 2013
|
|
$
|
98,707
|
|
|
$
|
1,016
|
|
|
$
|
28,732
|
|
|
$
|
20,961
|
|
|
$
|
870
|
|
|
$
|
150,286
|
|
|
|
Loans held for investment
|
|
|
||||||||||||||||||||
|
|
C&I
|
|
CRE
construction
|
|
CRE
|
|
Residential
mortgage
|
|
SBL and other consumer
|
|
Total
|
||||||||||||
|
(in thousands)
|
|||||||||||||||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,333
|
|
|
$
|
—
|
|
|
$
|
2,333
|
|
Collectively evaluated for impairment
|
|
95,702
|
|
|
1,799
|
|
|
22,276
|
|
|
14,281
|
|
|
1,549
|
|
|
135,607
|
|
||||||
Total allowance for loan losses
|
|
$
|
95,702
|
|
|
$
|
1,799
|
|
|
$
|
22,276
|
|
|
$
|
16,614
|
|
|
$
|
1,549
|
|
|
$
|
137,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Recorded investment:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,324
|
|
|
$
|
37,880
|
|
|
$
|
—
|
|
|
$
|
62,204
|
|
Collectively evaluated for impairment
|
|
5,947,379
|
|
|
106,696
|
|
|
1,489,684
|
|
|
1,704,036
|
|
|
772,975
|
|
|
10,020,770
|
|
||||||
Total recorded investment
|
|
$
|
5,947,379
|
|
|
$
|
106,696
|
|
|
$
|
1,514,008
|
|
|
$
|
1,741,916
|
|
|
$
|
772,975
|
|
|
$
|
10,082,974
|
|
|
|
|||||||||||||||||||||||
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
2,379
|
|
|
$
|
—
|
|
|
$
|
2,380
|
|
Collectively evaluated for impairment
|
|
95,994
|
|
|
1,000
|
|
|
19,265
|
|
|
16,747
|
|
|
1,115
|
|
|
134,121
|
|
||||||
Total allowance for loan losses
|
|
$
|
95,994
|
|
|
$
|
1,000
|
|
|
$
|
19,266
|
|
|
$
|
19,126
|
|
|
$
|
1,115
|
|
|
$
|
136,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Recorded investment:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
|
$
|
89
|
|
|
$
|
—
|
|
|
$
|
25,512
|
|
|
$
|
36,648
|
|
|
$
|
—
|
|
|
$
|
62,249
|
|
Collectively evaluated for impairment
|
|
5,245,916
|
|
|
60,840
|
|
|
1,257,534
|
|
|
1,709,002
|
|
|
555,805
|
|
|
8,829,097
|
|
||||||
Total recorded investment
|
|
$
|
5,246,005
|
|
|
$
|
60,840
|
|
|
$
|
1,283,046
|
|
|
$
|
1,745,650
|
|
|
$
|
555,805
|
|
|
$
|
8,891,346
|
|
(1)
|
Excludes any net unearned income and deferred expenses.
|
|
Aggregate
assets
(1)
|
|
Aggregate
liabilities
(1)
|
||||
|
(in thousands)
|
||||||
March 31, 2014
|
|
|
|
||||
LIHTC Funds
|
$
|
198,825
|
|
|
$
|
55,036
|
|
Guaranteed LIHTC Fund
(2)
|
75,804
|
|
|
—
|
|
||
Restricted Stock Trust Fund
|
13,907
|
|
|
4,665
|
|
||
EIF Funds
|
5,616
|
|
|
—
|
|
||
Total
|
$
|
294,152
|
|
|
$
|
59,701
|
|
|
|
|
|
||||
September 30, 2013
|
|
|
|
|
|
||
LIHTC Funds
|
$
|
208,634
|
|
|
$
|
78,055
|
|
Guaranteed LIHTC Fund
(2)
|
81,712
|
|
|
—
|
|
||
Restricted Stock Trust Fund
|
13,075
|
|
|
6,710
|
|
||
EIF Funds
|
7,588
|
|
|
—
|
|
||
Total
|
$
|
311,009
|
|
|
$
|
84,765
|
|
(1)
|
Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE.
|
(2)
|
In connection with
one
of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has provided the investor members with a guaranteed return on their investment in the fund (the “Guaranteed LIHTC Fund”). See
Note 16
for additional information regarding this commitment.
|
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
(in thousands)
|
||||||
Assets:
|
|
|
|
||||
Assets segregated pursuant to regulations and other segregated assets
|
$
|
9,999
|
|
|
$
|
11,857
|
|
Receivables, other
|
6,053
|
|
|
5,763
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
258,633
|
|
|
272,096
|
|
||
Trust fund investment in RJF common stock
(1)
|
13,905
|
|
|
13,073
|
|
||
Prepaid expenses and other assets
|
6,364
|
|
|
8,230
|
|
||
Total assets
|
$
|
294,954
|
|
|
$
|
311,019
|
|
|
|
|
|
||||
Liabilities and equity:
|
|
|
|
|
|
||
Trade and other payables
|
$
|
12,721
|
|
|
$
|
1,428
|
|
Intercompany payables
|
5,046
|
|
|
6,390
|
|
||
Loans payable of consolidated variable interest entities
(2)
|
53,505
|
|
|
62,938
|
|
||
Total liabilities
|
71,272
|
|
|
70,756
|
|
||
RJF equity
|
6,155
|
|
|
6,175
|
|
||
Noncontrolling interests
|
217,527
|
|
|
234,088
|
|
||
Total equity
|
223,682
|
|
|
240,263
|
|
||
Total liabilities and equity
|
$
|
294,954
|
|
|
$
|
311,019
|
|
(1)
|
Included in treasury stock in our Condensed Consolidated Statements of Financial Condition.
|
(2)
|
Comprised of several non-recourse loans. We are not contingently liable under any of these loans.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
3
|
|
Other
|
(1,580
|
)
|
|
2,509
|
|
|
(1,416
|
)
|
|
4,024
|
|
||||
Total revenues
|
(1,580
|
)
|
|
2,509
|
|
|
(1,415
|
)
|
|
4,027
|
|
||||
Interest expense
|
797
|
|
|
1,063
|
|
|
1,584
|
|
|
2,112
|
|
||||
Net revenues (expense)
|
(2,377
|
)
|
|
1,446
|
|
|
(2,999
|
)
|
|
1,915
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-interest expenses
|
12,052
|
|
|
12,452
|
|
|
21,017
|
|
|
17,143
|
|
||||
Net loss including noncontrolling interests
|
(14,429
|
)
|
|
(11,006
|
)
|
|
(24,016
|
)
|
|
(15,228
|
)
|
||||
Net loss attributable to noncontrolling interests
|
(14,420
|
)
|
|
(11,051
|
)
|
|
(23,996
|
)
|
|
(15,304
|
)
|
||||
Net (loss) income attributable to RJF
|
$
|
(9
|
)
|
|
$
|
45
|
|
|
$
|
(20
|
)
|
|
$
|
76
|
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||||||||||
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
LIHTC Funds
|
$
|
2,828,024
|
|
|
$
|
829,589
|
|
|
$
|
20,453
|
|
|
$
|
2,532,457
|
|
|
$
|
762,346
|
|
|
$
|
14,387
|
|
NMTC Funds
|
140,492
|
|
|
147
|
|
|
13
|
|
|
140,499
|
|
|
278
|
|
|
13
|
|
||||||
Other Real Estate Limited Partnerships and LLCs
|
28,993
|
|
|
36,016
|
|
|
198
|
|
|
30,240
|
|
|
35,512
|
|
|
212
|
|
||||||
Total
|
$
|
2,997,509
|
|
|
$
|
865,752
|
|
|
$
|
20,664
|
|
|
$
|
2,703,196
|
|
|
$
|
798,136
|
|
|
$
|
14,612
|
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||||||||||
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Managed Funds
|
$
|
50,597
|
|
|
$
|
1,343
|
|
|
$
|
91
|
|
|
$
|
56,321
|
|
|
$
|
1,415
|
|
|
$
|
202
|
|
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
(in thousands)
|
||||||
Goodwill
|
$
|
295,486
|
|
|
$
|
295,486
|
|
Identifiable intangible assets, net
|
62,360
|
|
|
65,978
|
|
||
Total goodwill and identifiable intangible assets, net
|
$
|
357,846
|
|
|
$
|
361,464
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||||
|
Segment
|
|
|
|
Segment
|
|
|
||||||||||||||||
|
Private client group
|
|
Capital markets
|
|
Total
|
|
Private client group
|
|
Capital markets
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Fiscal year 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill as of beginning of period
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Goodwill as of end of period
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fiscal year 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill as of beginning of period
|
$
|
174,584
|
|
|
$
|
127,835
|
|
|
$
|
302,419
|
|
|
$
|
173,317
|
|
|
$
|
126,794
|
|
|
$
|
300,111
|
|
Adjustments to prior year additions
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,267
|
|
|
1,041
|
|
|
2,308
|
|
||||||
Impairment losses
|
—
|
|
|
(6,933
|
)
|
(2)
|
(6,933
|
)
|
|
—
|
|
|
(6,933
|
)
|
(2)
|
(6,933
|
)
|
||||||
Goodwill as of end of period
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
|
$
|
174,584
|
|
|
$
|
120,902
|
|
|
$
|
295,486
|
|
(1)
|
The goodwill adjustment in the prior year period arose from a change in a tax election pertaining to whether assets acquired and liabilities assumed are written-up to fair value for tax purposes. This election is made on an entity-by-entity basis, and during the period indicated our assumption regarding whether we would make such election changed for one of the Morgan Keegan entities we acquired. The offsetting balance associated with this adjustment to goodwill was the net deferred tax asset.
|
(2)
|
The impairment expense in the
three and six months ended March 31, 2013
is associated with the Raymond James European Securities, S.A.S. (“RJES”) reporting unit. We concluded that the goodwill associated with this reporting unit was completely impaired during such periods. Since we did not own 100% of RJES as of the goodwill impairment testing date, for the three and six month periods ended March 31, 2013 the effect of this impairment expense on the pre-tax income attributable to Raymond James Financial, Inc is approximately
$4.6 million
, and the portion of the impairment expense attributable to the noncontrolling interests is approximately
$2.3 million
.
|
|
Segment
|
|
|
||||||||||||||||
|
Private client group
|
|
Capital markets
|
|
Asset management
|
|
RJ Bank
|
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
For the three months ended March 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Net identifiable intangible assets as of beginning of period
|
$
|
9,035
|
|
|
$
|
42,099
|
|
|
$
|
11,996
|
|
|
$
|
1,014
|
|
|
$
|
64,144
|
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|
118
|
|
|||||
Amortization expense
|
(146
|
)
|
|
(1,375
|
)
|
|
(333
|
)
|
|
(48
|
)
|
|
(1,902
|
)
|
|||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net identifiable intangible assets as of end of period
|
$
|
8,889
|
|
|
$
|
40,724
|
|
|
$
|
11,663
|
|
|
$
|
1,084
|
|
|
$
|
62,360
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the six months ended March 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Net identifiable intangible assets as of beginning of period
|
$
|
9,191
|
|
|
$
|
43,474
|
|
|
$
|
12,329
|
|
|
$
|
984
|
|
|
$
|
65,978
|
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|
189
|
|
|||||
Amortization expense
|
(302
|
)
|
|
(2,750
|
)
|
|
(666
|
)
|
|
(89
|
)
|
|
(3,807
|
)
|
|||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net identifiable intangible assets as of end of period
|
$
|
8,889
|
|
|
$
|
40,724
|
|
|
$
|
11,663
|
|
|
$
|
1,084
|
|
|
$
|
62,360
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the three months ended March 31, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Net identifiable intangible assets as of beginning of period
|
$
|
9,664
|
|
|
$
|
49,098
|
|
|
$
|
13,329
|
|
|
$
|
—
|
|
|
$
|
72,091
|
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Amortization expense
|
(162
|
)
|
|
(2,208
|
)
|
|
(333
|
)
|
|
—
|
|
|
(2,703
|
)
|
|||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net identifiable intangible assets as of end of period
|
$
|
9,502
|
|
|
$
|
46,890
|
|
|
$
|
12,996
|
|
|
$
|
—
|
|
|
$
|
69,388
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the six months ended March 31, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Net identifiable intangible assets as of beginning of period
|
$
|
9,829
|
|
|
$
|
51,306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
61,135
|
|
Additions
|
—
|
|
|
—
|
|
|
13,329
|
|
(1)
|
—
|
|
|
13,329
|
|
|||||
Amortization expense
|
(327
|
)
|
|
(4,416
|
)
|
|
(333
|
)
|
|
—
|
|
|
(5,076
|
)
|
|||||
Impairment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net identifiable intangible assets as of end of period
|
$
|
9,502
|
|
|
$
|
46,890
|
|
|
$
|
12,996
|
|
|
$
|
—
|
|
|
$
|
69,388
|
|
(1)
|
The additions in the prior year period are directly attributable to the customer list asset associated with our first quarter fiscal year 2013 acquisition of a
45%
interest in ClariVest (see
Note 3
for additional information). Since we are consolidating ClariVest, the amount represents the entire customer relationship intangible asset associated with the acquisition transaction; the amount shown is unadjusted by the
55%
share of ClariVest attributable to others. The estimated useful life associated with this addition is approximately
10 years
.
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||
|
Gross carrying value
|
|
Accumulated amortization
|
|
Gross carrying value
|
|
Accumulated amortization
|
||||||||
|
(in thousands)
|
||||||||||||||
Customer relationships
|
$
|
65,957
|
|
|
$
|
(11,281
|
)
|
|
$
|
65,957
|
|
|
$
|
(8,663
|
)
|
Trade name
|
2,000
|
|
|
(2,000
|
)
|
|
2,000
|
|
|
(2,000
|
)
|
||||
Developed technology
|
11,000
|
|
|
(4,400
|
)
|
|
11,000
|
|
|
(3,300
|
)
|
||||
Non-compete agreements
|
1,000
|
|
|
(1,000
|
)
|
|
1,000
|
|
|
(1,000
|
)
|
||||
Mortgage servicing rights
|
1,274
|
|
|
(190
|
)
|
|
1,085
|
|
|
(101
|
)
|
||||
Total
|
$
|
81,231
|
|
|
$
|
(18,871
|
)
|
|
$
|
81,042
|
|
|
$
|
(15,064
|
)
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||
|
Balance
|
|
Weighted-average rate
(1)
|
|
Balance
|
|
Weighted-average rate
(1)
|
||||||
|
($ in thousands)
|
||||||||||||
Bank deposits:
|
|
|
|
|
|
|
|
||||||
NOW accounts
|
$
|
7,109
|
|
|
0.01
|
%
|
|
$
|
7,003
|
|
|
0.01
|
%
|
Demand deposits (non-interest-bearing)
|
7,484
|
|
|
—
|
|
|
8,555
|
|
|
—
|
|
||
Savings and money market accounts
|
10,073,260
|
|
|
0.02
|
%
|
|
8,966,439
|
|
|
0.02
|
%
|
||
Certificates of deposit
|
326,951
|
|
|
1.90
|
%
|
|
313,374
|
|
|
1.96
|
%
|
||
Total bank deposits
(2)
|
$
|
10,414,804
|
|
|
0.08
|
%
|
|
$
|
9,295,371
|
|
|
0.09
|
%
|
(1)
|
Weighted-average rate calculation is based on the actual deposit balances at
March 31, 2014
and
September 30, 2013
, respectively.
|
(2)
|
Bank deposits exclude affiliate deposits of approximately
$7 million
and
$6 million
at
March 31, 2014
and
September 30, 2013
, respectively.
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||
|
Denominations
greater than or
equal to $100,000
|
|
Denominations
less than $100,000
|
|
Denominations
greater than or
equal to $100,000
|
|
Denominations
less than $100,000
|
||||||||
|
(in thousands)
|
||||||||||||||
Three months or less
|
$
|
4,960
|
|
|
$
|
6,360
|
|
|
$
|
7,343
|
|
|
$
|
8,540
|
|
Over three through six months
|
7,091
|
|
|
8,503
|
|
|
5,908
|
|
|
6,264
|
|
||||
Over six through twelve months
|
18,189
|
|
|
18,701
|
|
|
9,459
|
|
|
13,976
|
|
||||
Over one through two years
|
30,006
|
|
|
33,105
|
|
|
31,123
|
|
|
37,918
|
|
||||
Over two through three years
|
47,875
|
|
|
36,449
|
|
|
33,404
|
|
|
27,873
|
|
||||
Over three through four years
|
19,275
|
|
|
14,875
|
|
|
47,822
|
|
|
35,270
|
|
||||
Over four through five years
|
61,592
|
|
|
19,970
|
|
|
36,574
|
|
|
11,900
|
|
||||
Total
|
$
|
188,988
|
|
|
$
|
137,963
|
|
|
$
|
171,633
|
|
|
$
|
141,741
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Certificates of deposit
|
$
|
1,508
|
|
|
$
|
1,563
|
|
|
$
|
3,056
|
|
|
$
|
3,226
|
|
Money market, savings and NOW accounts
|
431
|
|
|
849
|
|
|
828
|
|
|
1,662
|
|
||||
Total interest expense on deposits
|
$
|
1,939
|
|
|
$
|
2,412
|
|
|
$
|
3,884
|
|
|
$
|
4,888
|
|
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
(in thousands)
|
||||||
Other borrowings:
|
|
|
|
||||
Borrowings on secured lines of credit
(1)
|
$
|
78,517
|
|
|
$
|
84,076
|
|
Borrowings on unsecured lines of credit
(2)
|
—
|
|
|
—
|
|
||
Total other borrowings
|
$
|
78,517
|
|
|
$
|
84,076
|
|
(1)
|
Other than a
$5 million
borrowing outstanding on the Regions Credit Facility (as hereinafter defined) as of
March 31, 2014
, any borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities.
|
(2)
|
Any borrowings on unsecured lines of credit are day-to-day and are generally utilized for cash management purposes.
|
|
Asset derivatives
|
||||||||||||||||||
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||||||
|
Balance sheet
location
|
|
Notional
amount
|
|
Fair
value
(1)
|
|
Balance sheet
location
|
|
Notional
amount
|
|
Fair
value
(1)
|
||||||||
|
(in thousands)
|
||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward foreign exchange contracts
|
Prepaid expenses and other assets
|
|
$
|
92,175
|
|
|
$
|
146
|
|
|
Prepaid expenses and other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate contracts
(2)
|
Trading instruments
|
|
$
|
2,546,517
|
|
|
$
|
84,607
|
|
|
Trading instruments
|
|
$
|
2,407,387
|
|
|
$
|
89,633
|
|
Interest rate contracts
(3)
|
Derivative instruments associated with offsetting matched book positions
|
|
$
|
2,190,008
|
|
|
$
|
289,271
|
|
|
Derivative instruments associated with offsetting matched book positions
|
|
$
|
1,944,408
|
|
|
$
|
250,341
|
|
|
Liability derivatives
|
||||||||||||||||||
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||||||
|
Balance sheet
location
|
|
Notional
amount
|
|
Fair
value
(1)
|
|
Balance sheet
location
|
|
Notional
amount
|
|
Fair
value
(1)
|
||||||||
|
(in thousands)
|
||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward foreign exchange contracts
|
Trade and other payables
|
|
$
|
524,469
|
|
|
$
|
528
|
|
|
Trade and other payables
|
|
$
|
655,828
|
|
|
$
|
637
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate contracts
(2)
|
Trading instruments sold
|
|
$
|
2,134,039
|
|
|
$
|
69,999
|
|
|
Trading instruments sold
|
|
$
|
2,420,531
|
|
|
$
|
74,920
|
|
Interest rate contracts
(3)
|
Derivative instruments associated with offsetting matched book positions
|
|
$
|
2,190,008
|
|
|
$
|
289,271
|
|
|
Derivative instruments associated with offsetting matched book positions
|
|
$
|
1,944,408
|
|
|
$
|
250,341
|
|
Forward foreign exchange contracts
|
Trade and other payables
|
|
$
|
106,558
|
|
|
$
|
134
|
|
|
Trade and other payables
|
|
$
|
79,588
|
|
|
$
|
77
|
|
(1)
|
The fair value in this table is presented on a gross basis before netting of cash collateral and before any netting by counterparty according to our legally enforceable master netting arrangements. The fair value in the Condensed Consolidated Statements of Financial Condition is presented net. See Note 14 for additional information regarding offsetting asset and liability balances.
|
(2)
|
These contracts arise from our OTC Derivatives Operations.
|
(3)
|
These contracts arise from our Offsetting Matched Book Derivatives Operations.
|
|
|
|
|
Amount of gain (loss) on derivatives
recognized in income
|
||||||||||||||
|
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
|
Location of gain (loss)
recognized on derivatives in the
Condensed Consolidated Statements of
Income and Comprehensive Income
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
|
|
(in thousands)
|
||||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
(1)
|
|
Net trading (loss) profit
|
|
$
|
(70
|
)
|
|
$
|
303
|
|
|
$
|
579
|
|
|
$
|
497
|
|
Interest rate contracts
(2)
|
|
Other revenues
|
|
$
|
651
|
|
|
$
|
213
|
|
|
$
|
671
|
|
|
$
|
403
|
|
Forward foreign exchange contracts
|
|
Other revenues
|
|
$
|
2,530
|
|
|
$
|
625
|
|
|
$
|
4,811
|
|
|
$
|
999
|
|
(1)
|
These contracts arise from our OTC Derivatives Operations.
|
(2)
|
These contracts arise from our Offsetting Matched Book Derivatives Operations.
|
|
|
|
|
|
|
|
|
Gross amounts not offset in the Statement of Financial Condition
|
|
|
||||||||||||||
|
|
Gross amounts of recognized assets (liabilities)
|
|
Gross amounts offset in the Statement of Financial Condition
|
|
Net amounts presented in the Statement of Financial Condition
|
|
Financial instruments
|
|
Cash collateral received (paid)
|
|
Net amount
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
As of March 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities purchased under agreements to resell and other collateralized financings
|
|
$
|
637,486
|
|
|
$
|
—
|
|
|
$
|
637,486
|
|
|
$
|
(659,039
|
)
|
|
$
|
—
|
|
|
$
|
(21,553
|
)
|
Derivatives - interest rate contracts
(1)
|
|
84,607
|
|
|
(59,938
|
)
|
|
24,669
|
|
|
(6,240
|
)
|
|
—
|
|
|
18,429
|
|
||||||
Derivative instruments associated with offsetting matched book positions
|
|
289,271
|
|
|
—
|
|
|
289,271
|
|
|
(289,271
|
)
|
(2)
|
—
|
|
|
—
|
|
||||||
Derivatives - forward foreign exchange contracts
|
|
146
|
|
|
—
|
|
|
146
|
|
|
—
|
|
|
—
|
|
|
146
|
|
||||||
Stock borrowed
|
|
185,868
|
|
|
—
|
|
|
185,868
|
|
|
—
|
|
|
(182,215
|
)
|
|
3,653
|
|
||||||
Total assets
|
|
$
|
1,197,378
|
|
|
$
|
(59,938
|
)
|
|
$
|
1,137,440
|
|
|
$
|
(954,550
|
)
|
|
$
|
(182,215
|
)
|
|
$
|
675
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities sold under agreements to repurchase
|
|
$
|
(377,677
|
)
|
|
$
|
—
|
|
|
$
|
(377,677
|
)
|
|
$
|
393,159
|
|
|
$
|
—
|
|
|
$
|
15,482
|
|
Derivatives - interest rate contracts
(1)
|
|
(69,999
|
)
|
|
64,171
|
|
|
(5,828
|
)
|
|
—
|
|
|
—
|
|
|
(5,828
|
)
|
||||||
Derivative instruments associated with offsetting matched book positions
|
|
(289,271
|
)
|
|
—
|
|
|
(289,271
|
)
|
|
289,271
|
|
(2)
|
—
|
|
|
—
|
|
||||||
Derivatives - forward foreign exchange contracts
(3)
|
|
(662
|
)
|
|
—
|
|
|
(662
|
)
|
|
—
|
|
|
—
|
|
|
(662
|
)
|
||||||
Stock loaned
|
|
(432,223
|
)
|
|
—
|
|
|
(432,223
|
)
|
|
—
|
|
|
421,321
|
|
|
(10,902
|
)
|
||||||
Total liabilities
|
|
$
|
(1,169,832
|
)
|
|
$
|
64,171
|
|
|
$
|
(1,105,661
|
)
|
|
$
|
682,430
|
|
|
$
|
421,321
|
|
|
$
|
(1,910
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of September 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities purchased under agreements to resell and other collateralized financings
|
|
$
|
709,120
|
|
|
$
|
—
|
|
|
$
|
709,120
|
|
|
$
|
(725,935
|
)
|
|
$
|
—
|
|
|
$
|
(16,815
|
)
|
Derivatives - interest rate contracts
(1)
|
|
89,633
|
|
|
(61,524
|
)
|
|
28,109
|
|
|
(6,409
|
)
|
|
—
|
|
|
21,700
|
|
||||||
Derivative instruments associated with offsetting matched book positions
|
|
250,341
|
|
|
—
|
|
|
250,341
|
|
|
(250,341
|
)
|
(2)
|
—
|
|
|
—
|
|
||||||
Stock borrowed
|
|
146,749
|
|
|
—
|
|
|
146,749
|
|
|
—
|
|
|
(143,108
|
)
|
|
3,641
|
|
||||||
Total assets
|
|
$
|
1,195,843
|
|
|
$
|
(61,524
|
)
|
|
$
|
1,134,319
|
|
|
$
|
(982,685
|
)
|
|
$
|
(143,108
|
)
|
|
$
|
8,526
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities sold under agreements to repurchase
|
|
$
|
(300,933
|
)
|
|
$
|
—
|
|
|
$
|
(300,933
|
)
|
|
$
|
313,548
|
|
|
$
|
—
|
|
|
$
|
12,615
|
|
Derivatives - interest rate contracts
(1)
|
|
(74,920
|
)
|
|
69,279
|
|
|
(5,641
|
)
|
|
—
|
|
|
—
|
|
|
(5,641
|
)
|
||||||
Derivative instruments associated with offsetting matched book positions
|
|
(250,341
|
)
|
|
—
|
|
|
(250,341
|
)
|
|
250,341
|
|
(2)
|
—
|
|
|
—
|
|
||||||
Derivatives - forward foreign exchange contracts
(3)
|
|
(714
|
)
|
|
—
|
|
|
(714
|
)
|
|
—
|
|
|
—
|
|
|
(714
|
)
|
||||||
Stock loaned
|
|
(354,377
|
)
|
|
—
|
|
|
(354,377
|
)
|
|
—
|
|
|
342,096
|
|
|
(12,281
|
)
|
||||||
Total liabilities
|
|
$
|
(981,285
|
)
|
|
$
|
69,279
|
|
|
$
|
(912,006
|
)
|
|
$
|
563,889
|
|
|
$
|
342,096
|
|
|
$
|
(6,021
|
)
|
(1)
|
Derivatives - interest rate contracts are included in Trading instruments on our condensed consolidated statements of financial condition. See
Note 13
for additional information.
|
(2)
|
Although these derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the nature of the agreement with the third party intermediary include terms that are similar to a master netting agreement, thus we present the offsetting amounts net in the table above. See
Note 13
for further discussion of the “pass through” structure of the derivative instruments associated with Offsetting Matched Book Derivatives Operations.
|
(3)
|
Derivatives - forward foreign exchange contracts are included in trade and other payables on our condensed consolidated statements of financial condition. See
Note 13
for additional information.
|
|
Sources of collateral
|
||
|
(in thousands)
|
||
Securities purchased under agreements to resell and other collateralized financings
|
$
|
659,039
|
|
Securities received in securities borrowed vs. cash transactions
|
182,215
|
|
|
Collateral received for margin loans
|
1,550,603
|
|
|
Securities received as collateral related to derivative contracts
|
6,240
|
|
|
Total
|
$
|
2,398,097
|
|
|
Uses of collateral
and trading securities
|
||
|
(in thousands)
|
||
Securities sold under agreements to repurchase
|
$
|
393,159
|
|
Securities delivered in securities loaned vs. cash transactions
|
421,321
|
|
|
Securities pledged as collateral under secured borrowing arrangements
|
100,184
|
|
|
Collateral used for deposits at clearing organizations
|
201,272
|
|
|
Total
|
$
|
1,115,936
|
|
|
Three months ended March 31, 2014
|
|
Six months ended March 31, 2014
|
||||||||||||||||||||
|
Unrealized loss on available for sale securities
|
|
Net currency translations and net investment hedges
(1)
|
|
Total
|
|
Unrealized loss on available for sale securities
|
|
Net currency translations and net investment hedges
(1)
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated other comprehensive (loss) income as of the beginning of the period
|
$
|
(182
|
)
|
|
$
|
5,727
|
|
|
$
|
5,545
|
|
|
$
|
(1,276
|
)
|
|
$
|
12,002
|
|
|
$
|
10,726
|
|
Other comprehensive income (loss) before reclassifications
|
3,506
|
|
|
(10,261
|
)
|
|
(6,755
|
)
|
|
6,870
|
|
|
(16,536
|
)
|
|
(9,666
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|
(2,294
|
)
|
|
—
|
|
|
(2,294
|
)
|
||||||
Net other comprehensive income (loss) for the period
|
3,482
|
|
|
(10,261
|
)
|
|
(6,779
|
)
|
|
4,576
|
|
|
(16,536
|
)
|
|
(11,960
|
)
|
||||||
Accumulated other comprehensive (loss) as of the end of the period
|
$
|
3,300
|
|
|
$
|
(4,534
|
)
|
|
$
|
(1,234
|
)
|
|
$
|
3,300
|
|
|
$
|
(4,534
|
)
|
|
$
|
(1,234
|
)
|
(1)
|
Includes net gains (losses) recognized on forward foreign exchange derivatives associated with hedges of RJ Bank’s foreign currency exposure due to it’s non-U.S. dollar net investments (see
Note 13
for additional information on these derivatives).
|
Accumulated other comprehensive income components:
|
|
Increase (decrease) in amounts reclassified from accumulated other comprehensive income
|
|
Affected line items in income statement
|
||||||
|
|
Three months ended March 31, 2014
|
|
Six months ended March 31, 2014
|
|
|
||||
|
|
(in thousands)
|
|
|
||||||
Available for sale securities:
(1)
|
|
|
|
|
|
|
||||
Auction rate securities
(2)
|
|
$
|
(39
|
)
|
|
$
|
(3,758
|
)
|
|
Other revenue
|
RJ Bank available for sale securities
|
|
—
|
|
|
27
|
|
|
Other revenue
|
||
|
|
(39
|
)
|
|
(3,731
|
)
|
|
Total before tax
|
||
|
|
15
|
|
|
1,437
|
|
|
Provision for income taxes
|
||
Total reclassifications for the period
|
|
$
|
(24
|
)
|
|
$
|
(2,294
|
)
|
|
Net of tax
|
(1)
|
See
Note 7
for additional information regarding the available for sale securities, and
Note 5
for additional fair value information regarding these securities.
|
(2)
|
For the
three and six months ended March 31, 2014
, other revenues include realized gains on the redemption or sale of ARS in the amount of
$107 thousand
and
$5.6 million
, respectively (see
Note 7
for further information). The amounts presented in the table represent the reversal out of AOCI associated with such ARS’ redeemed or sold. The net of such realized gain and this reversal out of AOCI represents the net effect of such redemptions and sales activities on other comprehensive income (“OCI”) for each respective period, on a pre-tax basis.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Margin balances
|
$
|
16,628
|
|
|
$
|
14,940
|
|
|
$
|
34,415
|
|
|
$
|
31,104
|
|
Assets segregated pursuant to regulations and other segregated assets
|
3,558
|
|
|
4,353
|
|
|
8,188
|
|
|
8,439
|
|
||||
Bank loans, net of unearned income
|
83,639
|
|
|
84,603
|
|
|
164,848
|
|
|
171,913
|
|
||||
Available for sale securities
|
1,655
|
|
|
1,987
|
|
|
3,578
|
|
|
4,204
|
|
||||
Trading instruments
|
4,615
|
|
|
5,110
|
|
|
9,143
|
|
|
10,960
|
|
||||
Stock loan
|
2,809
|
|
|
1,951
|
|
|
4,682
|
|
|
3,342
|
|
||||
Loans to financial advisors
|
1,647
|
|
|
1,792
|
|
|
3,303
|
|
|
3,152
|
|
||||
Corporate cash and all other
|
3,842
|
|
|
3,296
|
|
|
7,329
|
|
|
8,044
|
|
||||
Total interest income
|
$
|
118,393
|
|
|
$
|
118,032
|
|
|
$
|
235,486
|
|
|
$
|
241,158
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Brokerage client liabilities
|
$
|
286
|
|
|
$
|
591
|
|
|
$
|
717
|
|
|
$
|
1,140
|
|
Retail bank deposits
|
1,939
|
|
|
2,412
|
|
|
3,884
|
|
|
4,888
|
|
||||
Trading instruments sold but not yet purchased
|
1,255
|
|
|
971
|
|
|
2,123
|
|
|
1,768
|
|
||||
Stock borrow
|
814
|
|
|
608
|
|
|
1,306
|
|
|
1,112
|
|
||||
Borrowed funds
|
876
|
|
|
1,353
|
|
|
1,848
|
|
|
2,667
|
|
||||
Senior notes
|
19,010
|
|
|
19,028
|
|
|
38,020
|
|
|
38,094
|
|
||||
Interest expense of consolidated VIEs
|
797
|
|
|
1,063
|
|
|
1,584
|
|
|
2,112
|
|
||||
Other
|
1,003
|
|
|
1,177
|
|
|
1,870
|
|
|
3,443
|
|
||||
Total interest expense
|
25,980
|
|
|
27,203
|
|
|
51,352
|
|
|
55,224
|
|
||||
Net interest income
|
92,413
|
|
|
90,829
|
|
|
184,134
|
|
|
185,934
|
|
||||
Less: provision for loan losses
|
(1,979
|
)
|
|
(3,737
|
)
|
|
(3,615
|
)
|
|
(6,660
|
)
|
||||
Net interest income after provision for loan losses
|
$
|
90,434
|
|
|
$
|
87,092
|
|
|
$
|
180,519
|
|
|
$
|
179,274
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Total share-based expense
|
$
|
3,128
|
|
|
$
|
3,149
|
|
|
$
|
6,861
|
|
|
$
|
6,397
|
|
Income tax benefits related to share-based expense
|
483
|
|
|
600
|
|
|
1,278
|
|
|
995
|
|
|
Unrecognized
pre-tax expense
|
|
Remaining
weighted-
average period
|
||
|
(in thousands)
|
|
(in years)
|
||
Employees and directors
|
$
|
24,934
|
|
|
3.5
|
Independent contractor financial advisors
|
2,249
|
|
|
3.6
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Total share-based expense
|
$
|
12,422
|
|
|
$
|
11,908
|
|
|
$
|
29,057
|
|
|
$
|
25,952
|
|
Income tax benefits related to share-based expense
|
4,304
|
|
|
3,975
|
|
|
10,220
|
|
|
8,895
|
|
|
Unrecognized
pre-tax expense
|
|
Remaining
weighted-
average period
|
||
|
(in thousands)
|
|
(in years)
|
||
Employees and directors
|
$
|
106,166
|
|
|
2.9
|
Independent contractor financial advisors
|
209
|
|
|
1.6
|
|
||||||||||||||||||||
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized under prompt
corrective action
provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
RJF as of March 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk-weighted assets)
|
$
|
3,681,595
|
|
|
20.0
|
%
|
|
$
|
1,472,638
|
|
|
8.0
|
%
|
|
$
|
1,840,798
|
|
|
10.0
|
%
|
Tier I capital (to risk-weighted assets)
|
3,525,748
|
|
|
19.1
|
%
|
|
738,377
|
|
|
4.0
|
%
|
|
1,107,565
|
|
|
6.0
|
%
|
|||
Tier I capital (to adjusted assets)
|
3,525,748
|
|
|
15.8
|
%
|
|
892,594
|
|
|
4.0
|
%
|
|
1,115,743
|
|
|
5.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
RJF as of September 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk-weighted assets)
|
$
|
3,445,136
|
|
|
19.8
|
%
|
|
$
|
1,391,974
|
|
|
8.0
|
%
|
|
$
|
1,739,968
|
|
|
10.0
|
%
|
Tier I capital (to risk-weighted assets)
|
3,294,595
|
|
|
18.9
|
%
|
|
697,269
|
|
|
4.0
|
%
|
|
1,045,903
|
|
|
6.0
|
%
|
|||
Tier I capital (to adjusted assets)
|
3,294,595
|
|
|
14.5
|
%
|
|
908,854
|
|
|
4.0
|
%
|
|
1,136,067
|
|
|
5.0
|
%
|
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized under prompt
corrective action
provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
RJ Bank as of March 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk-weighted assets)
|
$
|
1,342,360
|
|
|
12.5
|
%
|
|
$
|
859,461
|
|
|
8.0
|
%
|
|
$
|
1,074,327
|
|
|
10.0
|
%
|
Tier I capital (to risk-weighted assets)
|
1,207,652
|
|
|
11.2
|
%
|
|
429,731
|
|
|
4.0
|
%
|
|
644,596
|
|
|
6.0
|
%
|
|||
Tier I capital (to adjusted assets)
|
1,207,652
|
|
|
10.4
|
%
|
|
463,755
|
|
|
4.0
|
%
|
|
579,693
|
|
|
5.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
RJ Bank as of September 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total capital (to risk-weighted assets)
|
$
|
1,234,268
|
|
|
13.0
|
%
|
|
$
|
758,996
|
|
|
8.0
|
%
|
|
$
|
948,745
|
|
|
10.0
|
%
|
Tier I capital (to risk-weighted assets)
|
1,115,113
|
|
|
11.8
|
%
|
|
379,498
|
|
|
4.0
|
%
|
|
569,247
|
|
|
6.0
|
%
|
|||
Tier I capital (to adjusted assets)
|
1,115,113
|
|
|
10.4
|
%
|
|
430,154
|
|
|
4.0
|
%
|
|
537,692
|
|
|
5.0
|
%
|
|
As of
|
||||||
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
($ in thousands)
|
||||||
Raymond James & Associates, Inc.:
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
||||
Net capital as a percent of aggregate debit items
|
28.44
|
%
|
|
23.14
|
%
|
||
Net capital
|
$
|
508,221
|
|
|
$
|
435,343
|
|
Less: required net capital
|
(35,740
|
)
|
|
(37,625
|
)
|
||
Excess net capital
|
$
|
472,481
|
|
|
$
|
397,718
|
|
|
As of
|
||||||
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
(in thousands)
|
||||||
Raymond James Financial Services, Inc.:
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
||||
Net capital
|
$
|
18,584
|
|
|
$
|
18,103
|
|
Less: required net capital
|
(250
|
)
|
|
(250
|
)
|
||
Excess net capital
|
$
|
18,334
|
|
|
$
|
17,853
|
|
|
As of
|
||||||
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
(in thousands)
|
||||||
Raymond James Ltd.:
|
|
|
|
||||
Risk adjusted capital before minimum
|
$
|
100,379
|
|
|
$
|
52,777
|
|
Less: required minimum capital
|
(250
|
)
|
|
(250
|
)
|
||
Risk adjusted capital
|
$
|
100,129
|
|
|
$
|
52,527
|
|
|
March 31, 2014
|
||
|
(in thousands)
|
||
Standby letters of credit
|
$
|
107,515
|
|
Open end consumer lines of credit
|
1,135,117
|
|
|
Commercial lines of credit
|
1,795,685
|
|
|
Unfunded loan commitments
|
210,999
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||
Income for basic earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to RJF
|
$
|
104,560
|
|
|
$
|
79,960
|
|
|
$
|
221,193
|
|
|
$
|
165,834
|
|
Less allocation of earnings and dividends to participating securities
(1)
|
(656
|
)
|
|
(908
|
)
|
|
(1,530
|
)
|
|
(2,107
|
)
|
||||
Net income attributable to RJF common shareholders
|
$
|
103,904
|
|
|
$
|
79,052
|
|
|
$
|
219,663
|
|
|
$
|
163,727
|
|
|
|
|
|
|
|
|
|
||||||||
Income for diluted earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to RJF
|
$
|
104,560
|
|
|
$
|
79,960
|
|
|
$
|
221,193
|
|
|
$
|
165,834
|
|
Less allocation of earnings and dividends to participating securities
(1)
|
(642
|
)
|
|
(894
|
)
|
|
(1,500
|
)
|
|
(2,078
|
)
|
||||
Net income attributable to RJF common shareholders
|
$
|
103,918
|
|
|
$
|
79,066
|
|
|
$
|
219,693
|
|
|
$
|
163,756
|
|
|
|
|
|
|
|
|
|
||||||||
Common shares:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average common shares in basic computation
|
139,888
|
|
|
137,817
|
|
|
139,498
|
|
|
137,156
|
|
||||
Dilutive effect of outstanding stock options and certain restricted stock units
|
3,748
|
|
|
2,905
|
|
|
3,567
|
|
|
2,513
|
|
||||
Average common shares used in diluted computation
|
143,636
|
|
|
140,722
|
|
|
143,065
|
|
|
139,669
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.74
|
|
|
$
|
0.57
|
|
|
$
|
1.57
|
|
|
$
|
1.19
|
|
Diluted
|
$
|
0.72
|
|
|
$
|
0.56
|
|
|
$
|
1.54
|
|
|
$
|
1.17
|
|
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive
|
228
|
|
|
108
|
|
|
527
|
|
|
387
|
|
(1)
|
Represents dividends paid during the period to participating securities plus an allocation of undistributed earnings to participating securities. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of
896 thousand
and
1.6 million
for the three months ended
March 31, 2014
and
2013
, respectively. Participating securities amounted to weighted-average shares of
976 thousand
and
1.8 million
for the
six months ended March 31, 2014
and
2013
, respectively. Dividends paid to participating securities amounted to
$133 thousand
and
$212 thousand
for the three months ended
March 31, 2014
and
2013
, respectively. Dividends paid to participating securities amounted to
$286 thousand
and
$465 thousand
for the
six months ended March 31, 2014
and
2013
, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Dividends per common share - declared
|
$
|
0.16
|
|
|
$
|
0.14
|
|
|
$
|
0.32
|
|
|
$
|
0.28
|
|
Dividends per common share - paid
|
$
|
0.16
|
|
|
$
|
0.14
|
|
|
$
|
0.30
|
|
|
$
|
0.27
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Private Client Group
|
$
|
814,668
|
|
|
$
|
728,822
|
|
|
$
|
1,593,864
|
|
|
$
|
1,443,124
|
|
Capital Markets
|
228,139
|
|
|
228,981
|
|
|
473,132
|
|
|
484,054
|
|
||||
Asset Management
|
87,534
|
|
|
69,541
|
|
|
183,550
|
|
|
135,170
|
|
||||
RJ Bank
|
87,157
|
|
|
89,821
|
|
|
171,030
|
|
|
181,871
|
|
||||
Other
|
3,982
|
|
|
70,062
|
|
|
24,071
|
|
|
95,521
|
|
||||
Intersegment eliminations
|
(16,855
|
)
|
|
(16,929
|
)
|
|
(32,248
|
)
|
|
(31,933
|
)
|
||||
Total revenues
(1)
|
$
|
1,204,625
|
|
|
$
|
1,170,298
|
|
|
$
|
2,413,399
|
|
|
$
|
2,307,807
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) excluding noncontrolling interests and before provision for income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Private Client Group
|
$
|
77,115
|
|
|
$
|
53,584
|
|
|
$
|
148,625
|
|
|
$
|
107,034
|
|
Capital Markets
|
29,571
|
|
|
16,389
|
|
|
63,016
|
|
|
45,642
|
|
||||
Asset Management
|
29,864
|
|
|
20,860
|
|
|
61,700
|
|
|
41,803
|
|
||||
RJ Bank
|
56,798
|
|
|
64,276
|
|
|
113,856
|
|
|
132,219
|
|
||||
Other
(2)
|
(27,884
|
)
|
|
(24,092
|
)
|
|
(42,809
|
)
|
|
(56,534
|
)
|
||||
Pre-tax income excluding noncontrolling interests
|
165,464
|
|
|
131,017
|
|
|
344,388
|
|
|
270,164
|
|
||||
Add: net (loss) income attributable to noncontrolling interests
|
(12,465
|
)
|
|
28,286
|
|
|
(12,577
|
)
|
|
36,306
|
|
||||
Income including noncontrolling interests and before provision for income taxes
|
$
|
152,999
|
|
|
$
|
159,303
|
|
|
$
|
331,811
|
|
|
$
|
306,470
|
|
(1)
|
No
individual client accounted for more than
ten
percent of total revenues in any of the periods presented.
|
(2)
|
For the three and six months ended
March 31, 2013
, the Other segment includes acquisition related expenses pertaining to our acquisitions (primarily related to our Morgan Keegan acquisition, see
Note 1
for additional information) in the amount of
$20.9 million
and
$38.3 million
, respectively. For the three and six months ended
March 31, 2014
, acquisition related expenses are no longer material for separate disclosure as our Morgan Keegan integration activities were substantially complete as of
September 30, 2013
.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Net interest income (expense):
|
|
|
|
|
|
|
|
||||||||
Private Client Group
|
$
|
22,136
|
|
|
$
|
21,030
|
|
|
$
|
45,586
|
|
|
$
|
42,592
|
|
Capital Markets
|
1,414
|
|
|
1,128
|
|
|
3,262
|
|
|
3,226
|
|
||||
Asset Management
|
12
|
|
|
14
|
|
|
41
|
|
|
38
|
|
||||
RJ Bank
|
84,527
|
|
|
85,197
|
|
|
166,641
|
|
|
172,943
|
|
||||
Other
|
(15,676
|
)
|
|
(16,540
|
)
|
|
(31,396
|
)
|
|
(32,865
|
)
|
||||
Net interest income
|
$
|
92,413
|
|
|
$
|
90,829
|
|
|
$
|
184,134
|
|
|
$
|
185,934
|
|
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
(in thousands)
|
||||||
Total assets:
|
|
|
|
||||
Private Client Group
(1)
|
$
|
6,140,672
|
|
|
$
|
7,649,030
|
|
Capital Markets
(2)
|
2,552,157
|
|
|
2,548,663
|
|
||
Asset Management
|
162,247
|
|
|
149,436
|
|
||
RJ Bank
|
11,788,448
|
|
|
10,489,524
|
|
||
Other
|
2,225,378
|
|
|
2,349,469
|
|
||
Total
|
$
|
22,868,902
|
|
|
$
|
23,186,122
|
|
(1)
|
Includes
$174.6 million
of goodwill at
March 31, 2014
and
September 30, 2013
.
|
(2)
|
Includes
$120.9 million
of goodwill at
March 31, 2014
and
September 30, 2013
.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
1,093,936
|
|
|
$
|
1,059,022
|
|
|
$
|
2,182,031
|
|
|
$
|
2,098,044
|
|
Canada
|
76,380
|
|
|
84,404
|
|
|
164,494
|
|
|
156,819
|
|
||||
Europe
|
25,588
|
|
|
21,284
|
|
|
50,584
|
|
|
42,174
|
|
||||
Other
|
8,721
|
|
|
5,588
|
|
|
16,290
|
|
|
10,770
|
|
||||
Total
|
$
|
1,204,625
|
|
|
$
|
1,170,298
|
|
|
$
|
2,413,399
|
|
|
$
|
2,307,807
|
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax income excluding noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
$
|
153,577
|
|
|
$
|
129,139
|
|
|
$
|
320,183
|
|
|
$
|
266,143
|
|
Canada
|
8,997
|
|
|
9,577
|
|
|
20,543
|
|
|
14,116
|
|
||||
Europe
|
656
|
|
|
(7,162
|
)
|
|
855
|
|
|
(7,230
|
)
|
||||
Other
|
2,234
|
|
|
(537
|
)
|
|
2,807
|
|
|
(2,865
|
)
|
||||
Total
|
$
|
165,464
|
|
|
$
|
131,017
|
|
|
$
|
344,388
|
|
|
$
|
270,164
|
|
|
March 31, 2014
|
|
September 30, 2013
|
||||
|
(in thousands)
|
||||||
Total assets:
|
|
|
|
||||
United States
(1)
|
$
|
21,028,364
|
|
|
$
|
21,154,293
|
|
Canada
(2)
|
1,759,620
|
|
|
1,965,648
|
|
||
Europe
|
38,815
|
|
|
26,415
|
|
||
Other
|
42,103
|
|
|
39,766
|
|
||
Total
|
$
|
22,868,902
|
|
|
$
|
23,186,122
|
|
(1)
|
Includes
$262.5 million
of goodwill at
March 31, 2014
and
September 30, 2013
.
|
(2)
|
Includes
$33 million
of goodwill at
March 31, 2014
and
September 30, 2013
.
|
•
|
Our Private Client Group segment generated record net revenues of
$812 million
, a
12%
increase over the prior year, while pre-tax income increased
44%
to a record
$77 million
. The increase in revenues is primarily attributable to increased securities commissions and fee revenues, predominately arising from fee-based accounts, as well as an increase in client account and service fee revenues. Commission expenses increased in proportion to the increase in corresponding commission revenues while all other components of non-interest expenses increased in total by a modest 3%. Client assets under administration of the Private Client Group increased
12%
over the prior year, to a record
$434 billion
at
March 31, 2014
.
|
•
|
The Capital Markets segment realized a
$13 million
, or
80%
, increase in pre-tax income to
$30 million
, on an equivalent level of net revenues. Favorable levels of domestic investment banking revenues, particularly mergers and acquisition fees, offset a significant decrease in institutional fixed income commission revenues resulting from challenging fixed income market conditions due to economic uncertainty, historically low interest rates and decreased customer trading volumes. Despite these fixed income market conditions, we continued to generate a reasonable level of trading profits in our fixed income operations. Our total trading profits for the current period, which result primarily from fixed income securities, reflect an increase of
$7 million
, or
93%
, compared to the prior year period. A prior year goodwill impairment expense of $6.9 million ($4.6 million after the attribution to the noncontrolling interests) associated with our RJES operations did not recur in the current period.
|
•
|
Our Asset Management segment generated net revenues of
$88 million
and a
$9 million
, or
43%
, increase in pre-tax income compared to the prior year. Financial assets under management increased
22%
from the prior year, to a record
$62 billion
as of
March 31, 2014
. Both strong net inflows of client assets and market appreciation contributed to the increase in revenues and pre-tax income.
|
•
|
RJ Bank generated
$57 million
in pre-tax income, a
$7 million
, or
12%
, decrease compared to the prior year. The decrease resulted primarily from a decrease in net interest margin, partially offset by an increase in average loans outstanding. The credit characteristics of the loan portfolio continued to reflect the positive impact of improved economic conditions.
|
•
|
Activities in our Other segment resulted in a pre-tax loss that was
$4 million
greater than the prior year quarter. The prior year included significant revenues associated with our indirect investment in Albion, which was subsequently sold in April, 2013, thus having a significant impact on comparisons to the prior year period. Nearly offsetting this decrease, our non-interest expenses decreased substantially as we no longer separately report acquisition and integration related costs since our integration of Morgan Keegan was substantially complete as of September 30, 2013.
|
•
|
Our effective tax rate for the current quarter was
36.8%
, a decrease from the
39.0%
effective tax rate in the prior year quarter. Our effective tax rate for the current quarter compared to the prior year quarter benefited from strong year-to-date gains in our Company Owned Life Insurance portfolio compared to the prior year period (such gains are not subject to tax and thus benefit the effective tax rate), and a projected increase in low income housing tax credits and state tax credits.
|
(1)
|
Refer to the discussion and reconciliation of the GAAP results to the non-GAAP results in the “Reconciliation of the GAAP results to the non-GAAP measures” section of this MD&A.
|
•
|
Our Private Client Group segment generated an increase of
39%
in pre-tax income, to
$149 million
.
|
•
|
The Capital Markets segment has realized a
$17 million
, or
38%
, increase in pre-tax income to
$63 million
.
|
•
|
Our Asset Management segment has generated a
$20 million
, or
48%
, increase in pre-tax income to
$62 million
. Strong net inflows of client assets, market appreciation, and performance fees earned as a result of positive net performance from certain of our managed funds (a portion of which is attributable to noncontrolling interests) have all contributed to the increase in revenues and pre-tax income.
|
•
|
RJ Bank has realized an
$18 million
, or
14%
decrease in pre-tax income, to
$114 million
.
|
•
|
Activities in our Other segment have resulted in a pre-tax loss that is
$14 million
less than the prior year. In addition to the factors described above, the current year includes gains from the sale or redemption of ARS which favorably impact comparisons to the prior year period.
|
•
|
Our effective tax rate for the current year period was
35.8%
, a decrease from the
38.6%
effective tax rate in the prior year period. In addition to the factors described above, the current year-to-date effective tax rate has also benefited from the recognition of prior year state tax refunds which resulted from a change in state tax filing position.
|
(1)
|
Refer to the discussion and reconciliation of the GAAP results to the non-GAAP results in the “Reconciliation of the GAAP results to the non-GAAP measures” section of this MD&A.
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||
|
|
2014
|
|
2013
|
|
% change
|
|
2014
|
|
2013
|
|
% change
|
||||||||||
|
|
($ in thousands)
|
||||||||||||||||||||
Total company
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
$
|
1,204,625
|
|
|
$
|
1,170,298
|
|
|
3
|
%
|
|
$
|
2,413,399
|
|
|
$
|
2,307,807
|
|
|
5
|
%
|
Net revenues
|
|
1,178,645
|
|
|
1,143,095
|
|
|
3
|
%
|
|
2,362,047
|
|
|
2,252,583
|
|
|
5
|
%
|
||||
Pre-tax income excluding noncontrolling interests
|
|
165,464
|
|
|
131,017
|
|
|
26
|
%
|
|
344,388
|
|
|
270,164
|
|
|
27
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Client Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
814,668
|
|
|
728,822
|
|
|
12
|
%
|
|
1,593,864
|
|
|
1,443,124
|
|
|
10
|
%
|
||||
Net revenues
|
|
812,239
|
|
|
725,937
|
|
|
12
|
%
|
|
1,588,908
|
|
|
1,436,267
|
|
|
11
|
%
|
||||
Pre-tax income
|
|
77,115
|
|
|
53,584
|
|
|
44
|
%
|
|
148,625
|
|
|
107,034
|
|
|
39
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
228,139
|
|
|
228,981
|
|
|
—
|
|
|
473,132
|
|
|
484,054
|
|
|
(2
|
)%
|
||||
Net revenues
|
|
224,443
|
|
|
224,470
|
|
|
—
|
|
|
466,085
|
|
|
475,252
|
|
|
(2
|
)%
|
||||
Pre-tax income
|
|
29,571
|
|
|
16,389
|
|
|
80
|
%
|
|
63,016
|
|
|
45,642
|
|
|
38
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
87,534
|
|
|
69,541
|
|
|
26
|
%
|
|
183,550
|
|
|
135,170
|
|
|
36
|
%
|
||||
Net revenues
|
|
87,524
|
|
|
69,538
|
|
|
26
|
%
|
|
183,537
|
|
|
135,166
|
|
|
36
|
%
|
||||
Pre-tax income
|
|
29,864
|
|
|
20,860
|
|
|
43
|
%
|
|
61,700
|
|
|
41,803
|
|
|
48
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
RJ Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
87,157
|
|
|
89,821
|
|
|
(3
|
)%
|
|
171,030
|
|
|
181,871
|
|
|
(6
|
)%
|
||||
Net revenues
|
|
85,218
|
|
|
87,397
|
|
|
(2
|
)%
|
|
167,146
|
|
|
176,819
|
|
|
(5
|
)%
|
||||
Pre-tax income
|
|
56,798
|
|
|
64,276
|
|
|
(12
|
)%
|
|
113,856
|
|
|
132,219
|
|
|
(14
|
)%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
3,982
|
|
|
70,062
|
|
|
(94
|
)%
|
|
24,071
|
|
|
95,521
|
|
|
(75
|
)%
|
||||
Net revenues
|
|
(15,626
|
)
|
|
50,227
|
|
|
(131
|
)%
|
|
(14,806
|
)
|
|
56,072
|
|
|
(126
|
)%
|
||||
Pre-tax loss
|
|
(27,884
|
)
|
|
(24,092
|
)
|
|
(16
|
)%
|
|
(42,809
|
)
|
|
(56,534
|
)
|
|
24
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intersegment eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
(16,855
|
)
|
|
(16,929
|
)
|
|
—
|
|
|
(32,248
|
)
|
|
(31,933
|
)
|
|
1
|
%
|
||||
Net revenues
|
|
(15,153
|
)
|
|
(14,474
|
)
|
|
(5
|
)%
|
|
(28,823
|
)
|
|
(26,993
|
)
|
|
7
|
%
|
|
Three months ended March 31, 2013
|
|
Six months ended March 31, 2013
|
||||
|
($ in thousands, except per share amounts)
|
||||||
Net income attributable to RJF, Inc. - GAAP basis
|
$
|
79,960
|
|
|
$
|
165,834
|
|
Non-GAAP adjustments:
|
|
|
|
||||
Acquisition related expenses
(1)
|
20,922
|
|
|
38,304
|
|
||
RJF's share of RJES goodwill impairment expense
(2)
|
4,564
|
|
|
4,564
|
|
||
RJES restructuring expense
(3)
|
1,600
|
|
|
1,600
|
|
||
Pre-tax non-GAAP adjustments
|
27,086
|
|
|
44,468
|
|
||
Tax effect of non-GAAP adjustment
(4)
|
(10,518
|
)
|
|
(17,174
|
)
|
||
Adjusted net income attributable to RJF, Inc. - Non-GAAP basis
|
$
|
96,528
|
|
|
$
|
193,128
|
|
Non-GAAP earnings per common share:
|
|
|
|
||||
Non-GAAP basic
|
$
|
0.69
|
|
|
$
|
1.39
|
|
Non-GAAP diluted
|
$
|
0.68
|
|
|
$
|
1.37
|
|
Average equity - GAAP basis
(5)
|
$
|
3,425,278
|
|
|
$
|
3,373,165
|
|
Average equity - non-GAAP basis
(6)
|
$
|
3,437,299
|
|
|
$
|
3,378,850
|
|
Return on equity for the quarter (annualized)
|
9.3
|
%
|
|
N/A
|
|
||
Return on equity for the quarter - non-GAAP basis (annualized)
(7)
|
11.2
|
%
|
|
N/A
|
|
||
Return on equity year-to-date (annualized)
|
N/A
|
|
|
9.8
|
%
|
||
Return on equity year-to-date - non-GAAP basis (annualized)
(7)
|
N/A
|
|
|
11.4
|
%
|
(1)
|
The non-GAAP adjustment adds back to pre-tax income one-time acquisition and integration expenses associated with acquisitions that were incurred during the period.
|
(2)
|
The non-GAAP adjustment adds back to pre-tax income RJF’s share of the total goodwill impairment expense associated with our RJES reporting unit.
|
(3)
|
The non-GAAP adjustment adds back to pre-tax income a one-time restructuring expense associated with our RJES operations.
|
(4)
|
The non-GAAP adjustment reduces net income for the income tax effect of the pre-tax non-GAAP adjustments, utilizing the effective tax rate in such periods to determine the current tax expense.
|
(5)
|
For the quarter, computed by adding the total equity attributable to RJF, Inc. as of the date indicated plus the prior quarter-end total, divided by two. For the year-to-date period, computed by adding the total equity attributable to RJF, Inc. as of each quarter-end date during the indicated year-to-date period, plus the beginning of the year total, divided by three.
|
(6)
|
The calculation of non-GAAP average equity includes the impact on equity of the non-GAAP adjustments described in the table above, as applicable for each respective period.
|
(7)
|
Computed by utilizing the net income attributable to RJF, Inc.-non-GAAP basis and the average equity-non-GAAP basis, for each respective period. See footnotes (5) and (6) above for the calculation of average equity-non-GAAP basis.
|
|
Three months ended March 31,
|
||||||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||||||
|
Average
balance
(1)
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
|
Average
balance
(1)
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Margin balances
|
$
|
1,737,657
|
|
|
$
|
16,628
|
|
|
3.83
|
%
|
|
$
|
1,749,633
|
|
|
$
|
14,940
|
|
|
3.42
|
%
|
Assets segregated pursuant to regulations and other segregated assets
|
2,420,531
|
|
|
3,558
|
|
|
0.59
|
%
|
|
3,687,703
|
|
|
4,353
|
|
|
0.47
|
%
|
||||
Bank loans, net of unearned income
(2)
|
9,767,721
|
|
|
83,639
|
|
|
3.43
|
%
|
|
8,629,173
|
|
|
84,603
|
|
|
3.92
|
%
|
||||
Available for sale securities
|
662,606
|
|
|
1,655
|
|
|
1.00
|
%
|
|
745,208
|
|
|
1,987
|
|
|
1.07
|
%
|
||||
Trading instruments
(3)
|
654,073
|
|
|
4,615
|
|
|
2.82
|
%
|
|
851,099
|
|
|
5,110
|
|
|
2.40
|
%
|
||||
Stock loan
|
332,654
|
|
|
2,809
|
|
|
3.38
|
%
|
|
298,122
|
|
|
1,951
|
|
|
2.62
|
%
|
||||
Loans to financial advisors
(3)
|
409,304
|
|
|
1,647
|
|
|
1.61
|
%
|
|
424,434
|
|
|
1,792
|
|
|
1.69
|
%
|
||||
Corporate cash and all other
(3)
|
2,793,433
|
|
|
3,842
|
|
|
0.55
|
%
|
|
3,150,572
|
|
|
3,296
|
|
|
0.42
|
%
|
||||
Total
|
$
|
18,777,979
|
|
|
$
|
118,393
|
|
|
2.52
|
%
|
|
$
|
19,535,944
|
|
|
$
|
118,032
|
|
|
2.42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Brokerage client liabilities
|
$
|
3,696,083
|
|
|
286
|
|
|
0.03
|
%
|
|
$
|
4,956,293
|
|
|
$
|
591
|
|
|
0.05
|
%
|
|
Bank deposits
(2)
|
10,268,228
|
|
|
1,939
|
|
|
0.08
|
%
|
|
9,297,380
|
|
|
2,412
|
|
|
0.10
|
%
|
||||
Trading instruments sold but not yet purchased
(3)
|
252,820
|
|
|
1,255
|
|
|
1.99
|
%
|
|
284,339
|
|
|
971
|
|
|
1.37
|
%
|
||||
Stock borrow
|
95,997
|
|
|
814
|
|
|
3.39
|
%
|
|
113,926
|
|
|
608
|
|
|
2.13
|
%
|
||||
Borrowed funds
|
275,667
|
|
|
876
|
|
|
1.27
|
%
|
|
461,114
|
|
|
1,353
|
|
|
1.17
|
%
|
||||
Senior notes
|
1,148,924
|
|
|
19,010
|
|
|
6.62
|
%
|
|
1,148,736
|
|
|
19,028
|
|
|
6.63
|
%
|
||||
Loans payable of consolidated variable interest entities
(3)
|
52,994
|
|
|
797
|
|
|
6.02
|
%
|
|
71,732
|
|
|
1,063
|
|
|
5.93
|
%
|
||||
Other
(3)
|
332,835
|
|
|
1,003
|
|
|
1.21
|
%
|
|
329,922
|
|
|
1,177
|
|
|
1.43
|
%
|
||||
Total
|
$
|
16,123,548
|
|
|
$
|
25,980
|
|
|
0.64
|
%
|
|
$
|
16,663,442
|
|
|
$
|
27,203
|
|
|
0.65
|
%
|
Net interest income
|
|
|
|
$
|
92,413
|
|
|
|
|
|
|
|
|
$
|
90,829
|
|
|
|
|
(1)
|
Represents average daily balance, unless otherwise noted.
|
(2)
|
See Results of Operations – RJ Bank in this MD&A for further information.
|
(3)
|
Average balance is calculated based on the average of the end of month balances for each month within the period.
|
|
Six months ended March 31,
|
||||||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||||||
|
Average
balance
(1)
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
|
Average
balance
(1)
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Margin balances
|
$
|
1,747,112
|
|
|
$
|
34,415
|
|
|
3.94
|
%
|
|
$
|
1,792,510
|
|
|
$
|
31,104
|
|
|
3.47
|
%
|
Assets segregated pursuant to regulations and other segregated assets
|
3,170,991
|
|
|
8,188
|
|
|
0.52
|
%
|
|
3,371,761
|
|
|
8,439
|
|
|
0.50
|
%
|
||||
Bank loans, net of unearned income
(2)
|
9,453,109
|
|
|
164,848
|
|
|
3.46
|
%
|
|
8,464,963
|
|
|
171,913
|
|
|
4.02
|
%
|
||||
Available for sale securities
|
678,673
|
|
|
3,578
|
|
|
1.05
|
%
|
|
742,440
|
|
|
4,204
|
|
|
1.13
|
%
|
||||
Trading instruments
(3)
|
599,389
|
|
|
9,143
|
|
|
3.05
|
%
|
|
871,035
|
|
|
10,960
|
|
|
2.52
|
%
|
||||
Stock loan
|
337,062
|
|
|
4,682
|
|
|
2.78
|
%
|
|
326,971
|
|
|
3,342
|
|
|
2.04
|
%
|
||||
Loans to financial advisors
(3)
|
407,435
|
|
|
3,303
|
|
|
1.62
|
%
|
|
431,082
|
|
|
3,152
|
|
|
1.46
|
%
|
||||
Corporate cash and all other
(3)
|
2,713,887
|
|
|
7,329
|
|
|
0.54
|
%
|
|
2,913,835
|
|
|
8,044
|
|
|
0.55
|
%
|
||||
Total
|
$
|
19,107,658
|
|
|
$
|
235,486
|
|
|
2.46
|
%
|
|
$
|
18,914,597
|
|
|
$
|
241,158
|
|
|
2.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Brokerage client liabilities
|
$
|
4,438,042
|
|
|
717
|
|
|
0.03
|
%
|
|
$
|
4,664,428
|
|
|
$
|
1,140
|
|
|
0.05
|
%
|
|
Bank deposits
(2)
|
9,873,142
|
|
|
3,884
|
|
|
0.08
|
%
|
|
9,014,760
|
|
|
4,888
|
|
|
0.11
|
%
|
||||
Trading instruments sold but not yet purchased
(3)
|
233,886
|
|
|
2,123
|
|
|
1.82
|
%
|
|
266,945
|
|
|
1,768
|
|
|
1.32
|
%
|
||||
Stock borrow
|
96,222
|
|
|
1,306
|
|
|
2.71
|
%
|
|
126,563
|
|
|
1,112
|
|
|
1.76
|
%
|
||||
Borrowed funds
|
278,672
|
|
|
1,848
|
|
|
1.33
|
%
|
|
403,651
|
|
|
2,667
|
|
|
1.32
|
%
|
||||
Senior notes
|
1,148,924
|
|
|
38,020
|
|
|
6.62
|
%
|
|
1,148,712
|
|
|
38,094
|
|
|
6.63
|
%
|
||||
Loans payable of consolidated variable interest entities
(3)
|
56,266
|
|
|
1,584
|
|
|
5.63
|
%
|
|
75,001
|
|
|
2,112
|
|
|
5.63
|
%
|
||||
Other
(3)
|
337,618
|
|
|
1,870
|
|
|
1.11
|
%
|
|
348,928
|
|
|
3,443
|
|
|
1.97
|
%
|
||||
Total
|
$
|
16,462,772
|
|
|
$
|
51,352
|
|
|
0.62
|
%
|
|
$
|
16,048,988
|
|
|
$
|
55,224
|
|
|
0.69
|
%
|
Net interest income
|
|
|
|
$
|
184,134
|
|
|
|
|
|
|
|
|
$
|
185,934
|
|
|
|
|
(1)
|
Represents average daily balance, unless otherwise noted.
|
(2)
|
See Results of Operations – RJ Bank in this MD&A for further information.
|
(3)
|
Average balance is calculated based on the average of the end of month balances for each month within the period.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||
|
2014
|
|
% change
|
|
2013
|
|
2014
|
|
% change
|
|
2013
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities commissions and fees:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equities
|
$
|
75,838
|
|
|
—
|
|
|
$
|
75,577
|
|
|
$
|
154,440
|
|
|
4
|
%
|
|
$
|
148,758
|
|
Fixed income products
|
19,842
|
|
|
(14
|
)%
|
|
23,111
|
|
|
40,243
|
|
|
(15
|
)%
|
|
47,464
|
|
||||
Mutual funds
|
171,116
|
|
|
8
|
%
|
|
158,170
|
|
|
335,802
|
|
|
11
|
%
|
|
302,832
|
|
||||
Fee-based accounts
|
305,595
|
|
|
24
|
%
|
|
246,695
|
|
|
592,732
|
|
|
21
|
%
|
|
489,263
|
|
||||
Insurance and annuity products
|
89,689
|
|
|
2
|
%
|
|
87,669
|
|
|
174,341
|
|
|
2
|
%
|
|
170,987
|
|
||||
New issue sales credits
|
21,453
|
|
|
(10
|
)%
|
|
23,963
|
|
|
43,482
|
|
|
(15
|
)%
|
|
51,418
|
|
||||
Sub-total securities commissions and fees
|
683,533
|
|
|
11
|
%
|
|
615,185
|
|
|
1,341,040
|
|
|
11
|
%
|
|
1,210,722
|
|
||||
Interest
|
24,565
|
|
|
3
|
%
|
|
23,915
|
|
|
50,542
|
|
|
2
|
%
|
|
49,449
|
|
||||
Account and service fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Client account and service fees
|
40,996
|
|
|
4
|
%
|
|
39,380
|
|
|
79,017
|
|
|
(4
|
)%
|
|
82,074
|
|
||||
Mutual fund and annuity service fees
|
52,137
|
|
|
28
|
%
|
|
40,862
|
|
|
98,313
|
|
|
24
|
%
|
|
79,245
|
|
||||
Client transaction fees
|
4,743
|
|
|
13
|
%
|
|
4,207
|
|
|
9,392
|
|
|
17
|
%
|
|
8,058
|
|
||||
Correspondent clearing fees
|
771
|
|
|
9
|
%
|
|
708
|
|
|
1,583
|
|
|
12
|
%
|
|
1,411
|
|
||||
Account and service fees – all other
|
69
|
|
|
1
|
%
|
|
68
|
|
|
143
|
|
|
8
|
%
|
|
133
|
|
||||
Sub-total account and service fees
|
98,716
|
|
|
16
|
%
|
|
85,225
|
|
|
188,448
|
|
|
10
|
%
|
|
170,921
|
|
||||
Other
|
7,854
|
|
|
75
|
%
|
|
4,497
|
|
|
13,834
|
|
|
15
|
%
|
|
12,032
|
|
||||
Total revenues
|
814,668
|
|
|
12
|
%
|
|
728,822
|
|
|
1,593,864
|
|
|
10
|
%
|
|
1,443,124
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
2,429
|
|
|
(16
|
)%
|
|
2,885
|
|
|
4,956
|
|
|
(28
|
)%
|
|
6,857
|
|
||||
Net revenues
|
812,239
|
|
|
12
|
%
|
|
725,937
|
|
|
1,588,908
|
|
|
11
|
%
|
|
1,436,267
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales commissions
|
499,069
|
|
|
13
|
%
|
|
442,859
|
|
|
974,912
|
|
|
11
|
%
|
|
874,608
|
|
||||
Admin & incentive compensation and benefit costs
|
120,620
|
|
|
(1
|
)%
|
|
122,305
|
|
|
242,226
|
|
|
—
|
|
|
242,625
|
|
||||
Communications and information processing
|
44,579
|
|
|
10
|
%
|
|
40,681
|
|
|
82,080
|
|
|
4
|
%
|
|
79,040
|
|
||||
Occupancy and equipment
|
29,119
|
|
|
5
|
%
|
|
27,771
|
|
|
58,056
|
|
|
3
|
%
|
|
56,592
|
|
||||
Business development
|
19,403
|
|
|
29
|
%
|
|
15,067
|
|
|
39,700
|
|
|
21
|
%
|
|
32,693
|
|
||||
Clearance and other
|
22,334
|
|
|
(6
|
)%
|
|
23,670
|
|
|
43,309
|
|
|
(1
|
)%
|
|
43,675
|
|
||||
Total non-interest expenses
|
735,124
|
|
|
9
|
%
|
|
672,353
|
|
|
1,440,283
|
|
|
8
|
%
|
|
1,329,233
|
|
||||
Pre-tax income
|
$
|
77,115
|
|
|
44
|
%
|
|
$
|
53,584
|
|
|
$
|
148,625
|
|
|
39
|
%
|
|
$
|
107,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Margin on net revenues
|
9.5
|
%
|
|
|
|
|
7.4
|
%
|
|
9.4
|
%
|
|
|
|
|
7.5
|
%
|
|
March 31, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
|
June 30, 2013
|
|
March 31,
2013 |
|
December 31, 2012
|
||||||||||||
|
(in billions)
|
||||||||||||||||||||||
Total PCG assets under administration
|
$
|
434.0
|
|
|
$
|
422.9
|
|
|
$
|
402.6
|
|
|
$
|
387.3
|
|
|
$
|
388.2
|
|
|
$
|
370.0
|
|
PCG assets in fee-based accounts
|
$
|
158.2
|
|
|
$
|
151.2
|
|
|
$
|
139.9
|
|
|
$
|
131.8
|
|
|
$
|
129.2
|
|
|
$
|
118.6
|
|
|
Employees
|
|
Independent contractors
|
|
March 31, 2014 total
|
|
September 30, 2013 total
|
|
March 31, 2013 total
(1)
|
|||||
RJ&A
|
2,438
|
|
|
—
|
|
|
2,438
|
|
|
2,443
|
|
|
2,464
|
|
Raymond James Financial Services, Inc.
|
—
|
|
|
3,288
|
|
|
3,288
|
|
|
3,275
|
|
|
3,217
|
|
Raymond James Ltd.
|
178
|
|
|
219
|
|
|
397
|
|
|
406
|
|
|
413
|
|
Raymond James Investment Services Limited (“RJIS”)
|
—
|
|
|
79
|
|
|
79
|
|
|
73
|
|
|
71
|
|
Total financial advisors
|
2,616
|
|
|
3,586
|
|
|
6,202
|
|
|
6,197
|
|
|
6,165
|
|
(1)
|
As of September 30, 2013 we refined the criteria to determine our financial advisor population. The counts have been revised from those previously reported in order to present the information on a consistent basis through the application of our current criteria.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||
|
2014
|
|
% change
|
|
2013
|
|
2014
|
|
% change
|
|
2013
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Institutional sales commissions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity
|
$
|
66,394
|
|
|
(1
|
)%
|
|
$
|
66,963
|
|
|
$
|
132,039
|
|
|
7
|
%
|
|
$
|
122,873
|
|
Fixed income
|
62,165
|
|
|
(29
|
)%
|
|
87,872
|
|
|
127,233
|
|
|
(29
|
)%
|
|
179,775
|
|
||||
Sub-total institutional sales commissions
|
128,559
|
|
|
(17
|
)%
|
|
154,835
|
|
|
259,272
|
|
|
(14
|
)%
|
|
302,648
|
|
||||
Equity underwriting fees
|
22,397
|
|
|
16
|
%
|
|
19,353
|
|
|
41,148
|
|
|
(2
|
)%
|
|
41,805
|
|
||||
Mergers & acquisitions and advisory fees
|
27,694
|
|
|
64
|
%
|
|
16,892
|
|
|
68,753
|
|
|
13
|
%
|
|
60,703
|
|
||||
Fixed income investment banking
|
14,240
|
|
|
29
|
%
|
|
11,072
|
|
|
25,073
|
|
|
(1
|
)%
|
|
25,229
|
|
||||
Tax credit funds syndication fees
|
3,363
|
|
|
(28
|
)%
|
|
4,686
|
|
|
12,522
|
|
|
40
|
%
|
|
8,955
|
|
||||
Investment advisory fees
|
5,676
|
|
|
62
|
%
|
|
3,511
|
|
|
11,122
|
|
|
60
|
%
|
|
6,949
|
|
||||
Trading profit
|
14,061
|
|
|
93
|
%
|
|
7,277
|
|
|
30,662
|
|
|
101
|
%
|
|
15,273
|
|
||||
Interest
|
5,110
|
|
|
(9
|
)%
|
|
5,639
|
|
|
10,309
|
|
|
(14
|
)%
|
|
12,028
|
|
||||
Other
|
7,039
|
|
|
23
|
%
|
|
5,716
|
|
|
14,271
|
|
|
36
|
%
|
|
10,464
|
|
||||
Total revenues
|
228,139
|
|
|
—
|
|
|
228,981
|
|
|
473,132
|
|
|
(2
|
)%
|
|
484,054
|
|
||||
Interest expense
|
3,696
|
|
|
(18
|
)%
|
|
4,511
|
|
|
7,047
|
|
|
(20
|
)%
|
|
8,802
|
|
||||
Net revenues
|
224,443
|
|
|
—
|
|
|
224,470
|
|
|
466,085
|
|
|
(2
|
)%
|
|
475,252
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales commissions
|
49,123
|
|
|
(18
|
)%
|
|
60,264
|
|
|
100,961
|
|
|
(17
|
)%
|
|
121,598
|
|
||||
Admin & incentive compensation and benefit costs
|
100,566
|
|
|
2
|
%
|
|
98,553
|
|
|
213,756
|
|
|
1
|
%
|
|
211,599
|
|
||||
Communications and information processing
|
16,650
|
|
|
(2
|
)%
|
|
16,956
|
|
|
33,540
|
|
|
1
|
%
|
|
33,157
|
|
||||
Occupancy and equipment
|
8,780
|
|
|
(4
|
)%
|
|
9,128
|
|
|
17,446
|
|
|
(3
|
)%
|
|
18,002
|
|
||||
Business development
|
11,376
|
|
|
11
|
%
|
|
10,280
|
|
|
19,490
|
|
|
(4
|
)%
|
|
20,393
|
|
||||
Losses of real estate partnerships held by consolidated variable interest entities
|
11,969
|
|
|
(6
|
)%
|
|
12,751
|
|
|
20,565
|
|
|
28
|
%
|
|
16,057
|
|
||||
Impairment of goodwill associated with RJES
|
—
|
|
|
NM
|
|
|
6,933
|
|
|
—
|
|
|
NM
|
|
|
6,933
|
|
||||
Clearance and all other
|
10,589
|
|
|
13
|
%
|
|
9,331
|
|
|
22,033
|
|
|
(6
|
)%
|
|
23,366
|
|
||||
Total non-interest expenses
|
209,053
|
|
|
(7
|
)%
|
|
224,196
|
|
|
427,791
|
|
|
(5
|
)%
|
|
451,105
|
|
||||
Income before taxes and including noncontrolling interests
|
15,390
|
|
|
NM
|
|
|
274
|
|
|
38,294
|
|
|
59
|
%
|
|
24,147
|
|
||||
Noncontrolling interests
|
(14,181
|
)
|
|
|
|
|
(16,115
|
)
|
|
(24,722
|
)
|
|
|
|
(21,495
|
)
|
|||||
Pre-tax income excluding noncontrolling interests
|
$
|
29,571
|
|
|
80
|
%
|
|
$
|
16,389
|
|
|
$
|
63,016
|
|
|
38
|
%
|
|
$
|
45,642
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||
|
2014
|
|
% change
|
|
2013
|
|
2014
|
|
% change
|
|
2013
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment advisory fees
|
$
|
75,419
|
|
|
30
|
%
|
|
$
|
58,082
|
|
|
$
|
158,414
|
|
|
40
|
%
|
|
$
|
113,033
|
|
Other
|
12,115
|
|
|
6
|
%
|
|
11,459
|
|
|
25,136
|
|
|
14
|
%
|
|
22,137
|
|
||||
Total revenues
|
87,534
|
|
|
26
|
%
|
|
69,541
|
|
|
183,550
|
|
|
36
|
%
|
|
135,170
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Admin & incentive compensation and benefit costs
|
24,516
|
|
|
4
|
%
|
|
23,483
|
|
|
53,023
|
|
|
17
|
%
|
|
45,186
|
|
||||
Communications and information processing
|
5,357
|
|
|
11
|
%
|
|
4,837
|
|
|
10,457
|
|
|
21
|
%
|
|
8,608
|
|
||||
Occupancy and equipment
|
1,135
|
|
|
—
|
|
|
1,133
|
|
|
2,242
|
|
|
8
|
%
|
|
2,084
|
|
||||
Business development
|
1,866
|
|
|
(9
|
)%
|
|
2,054
|
|
|
4,544
|
|
|
13
|
%
|
|
4,038
|
|
||||
Investment sub-advisory fees
|
11,287
|
|
|
53
|
%
|
|
7,401
|
|
|
21,621
|
|
|
48
|
%
|
|
14,577
|
|
||||
Other
|
12,240
|
|
|
36
|
%
|
|
9,020
|
|
|
24,519
|
|
|
40
|
%
|
|
17,520
|
|
||||
Total expenses
|
56,401
|
|
|
18
|
%
|
|
47,928
|
|
|
116,406
|
|
|
27
|
%
|
|
92,013
|
|
||||
Income before taxes and including noncontrolling interests
|
31,133
|
|
|
44
|
%
|
|
21,613
|
|
|
67,144
|
|
|
56
|
%
|
|
43,157
|
|
||||
Noncontrolling interests
|
1,269
|
|
|
|
|
|
753
|
|
|
5,444
|
|
|
|
|
1,354
|
|
|||||
Pre-tax income excluding noncontrolling interests
|
$
|
29,864
|
|
|
43
|
%
|
|
$
|
20,860
|
|
|
$
|
61,700
|
|
|
48
|
%
|
|
$
|
41,803
|
|
|
March 31, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
|
March 31, 2013
|
|
December 31, 2012
|
|
September 30, 2012
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Financial assets under management:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Eagle Asset Management, Inc.
(1)
|
$
|
29,542
|
|
|
$
|
29,478
|
|
|
$
|
27,886
|
|
|
$
|
25,718
|
|
|
$
|
23,687
|
|
|
$
|
19,986
|
|
Raymond James Consulting Services
|
12,566
|
|
|
12,156
|
|
|
11,385
|
|
|
11,042
|
|
|
9,407
|
|
|
9,443
|
|
||||||
Unified Managed Accounts (“UMA”)
|
6,405
|
|
|
5,778
|
|
|
4,962
|
|
|
3,917
|
|
|
3,067
|
|
|
2,855
|
|
||||||
Freedom Accounts & other managed programs
|
18,755
|
|
|
17,992
|
|
|
16,555
|
|
|
14,851
|
|
|
12,268
|
|
|
11,884
|
|
||||||
Sub-total financial assets under management
|
67,268
|
|
|
65,404
|
|
|
60,788
|
|
|
55,528
|
|
|
48,429
|
|
|
44,168
|
|
||||||
Less: Assets managed for affiliated entities
|
(4,935
|
)
|
|
(4,899
|
)
|
|
(4,799
|
)
|
|
(4,520
|
)
|
|
(4,235
|
)
|
|
(4,185
|
)
|
||||||
Sub-total net financial assets under management
|
62,333
|
|
|
60,505
|
|
|
55,989
|
|
|
51,008
|
|
|
44,194
|
|
|
39,983
|
|
||||||
Morgan Keegan managed fee-based assets
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,333
|
|
|
2,801
|
|
||||||
Total financial assets under management
|
$
|
62,333
|
|
|
$
|
60,505
|
|
|
$
|
55,989
|
|
|
$
|
51,008
|
|
|
$
|
46,527
|
|
|
$
|
42,784
|
|
(1)
|
For all periods after December 24, 2012, includes the assets under management of ClariVest.
|
(2)
|
Revenues generated from the Closing Date of the Morgan Keegan acquisition through mid-February 2013 (the platform conversion date to RJ&A) arising from assets in what were during such time MK & Co. managed fee-based programs, were included in the PCG segment. These assets were managed by unaffiliated portfolio managers.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Assets under management at beginning of period
|
$
|
65,404
|
|
|
$
|
48,429
|
|
|
$
|
60,788
|
|
|
$
|
44,168
|
|
Net inflows of client assets
|
1,420
|
|
|
1,580
|
|
|
2,653
|
|
|
2,535
|
|
||||
Net market appreciation in asset values
|
444
|
|
|
3,118
|
|
|
3,827
|
|
|
3,312
|
|
||||
Inflows resulting from the conversion of MK & Co. accounts to the RJ&A platform
(1)
|
—
|
|
|
2,401
|
|
|
—
|
|
|
2,401
|
|
||||
Inflow resulting from ClariVest acquisition
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,112
|
|
||||
Assets under management at end of period
|
$
|
67,268
|
|
|
$
|
55,528
|
|
|
$
|
67,268
|
|
|
$
|
55,528
|
|
(1)
|
In mid-February 2013, the client accounts of MK & Co. were converted onto the RJ&A platform.
|
(2)
|
Eagle acquired a 45% interest in ClariVest on December 24, 2012.
|
|
March 31, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
|
March 31, 2013
|
|
December 31, 2012
|
|
September 30, 2012
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Passport
|
$
|
36,415
|
|
|
$
|
35,258
|
|
|
$
|
32,121
|
|
|
$
|
30,273
|
|
|
$
|
28,742
|
|
|
$
|
28,405
|
|
Ambassador
|
35,694
|
|
|
33,271
|
|
|
30,043
|
|
|
26,058
|
|
|
17,332
|
|
|
16,772
|
|
||||||
Other non-managed fee-based assets
|
2,721
|
|
|
2,669
|
|
|
2,517
|
|
|
3,340
|
|
|
3,115
|
|
|
3,191
|
|
||||||
Sub-total assets under management
|
74,830
|
|
|
71,198
|
|
|
64,681
|
|
|
59,671
|
|
|
49,189
|
|
|
48,368
|
|
||||||
Less: Assets managed for affiliated entities
|
(243
|
)
|
|
(214
|
)
|
|
(173
|
)
|
|
(122
|
)
|
|
(95
|
)
|
|
(88
|
)
|
||||||
Sub-total net assets under management
|
74,587
|
|
|
70,984
|
|
|
64,508
|
|
|
59,549
|
|
|
49,094
|
|
|
48,280
|
|
||||||
Morgan Keegan non-managed fee-based assets
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,810
|
|
|
6,772
|
|
||||||
Total assets under management
|
$
|
74,587
|
|
|
$
|
70,984
|
|
|
$
|
64,508
|
|
|
$
|
59,549
|
|
|
$
|
55,904
|
|
|
$
|
55,052
|
|
(1)
|
Revenues generated from the Closing Date of the Morgan Keegan acquisition through mid-February 2013 (the platform conversion date to RJ&A) arising from assets in what were during such time MK & Co. managed fee-based programs, were included in the PCG segment. These assets were managed by unaffiliated portfolio managers.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
|
(in millions)
|
|
||||||||||||||
Assets under management at beginning of period
|
$
|
71,198
|
|
|
$
|
49,189
|
|
(1)
|
$
|
64,681
|
|
|
$
|
48,368
|
|
(1)
|
Net inflows of client assets
|
2,776
|
|
|
1,639
|
|
|
5,436
|
|
|
2,486
|
|
|
||||
Net market appreciation in asset values
|
856
|
|
|
2,216
|
|
|
4,713
|
|
|
2,190
|
|
|
||||
Inflows resulting from the conversion of Morgan Keegan accounts to the RJ&A platform
(2)
|
—
|
|
|
6,627
|
|
|
—
|
|
|
6,627
|
|
|
||||
Assets under management at end of period
|
$
|
74,830
|
|
|
$
|
59,671
|
|
|
$
|
74,830
|
|
|
$
|
59,671
|
|
|
(1)
|
Certain assets in non-managed accounts, predominately comprised of cash balances, are excluded from the calculation of the account value for fee billing purposes. The assets under management balances presented have been revised from the amounts initially reported to reflect only billable assets and to present such balances on a consistent basis with those reported as of
March 31, 2014
.
|
(2)
|
In mid-February 2013, the client accounts of MK & Co. were converted onto the RJ&A platform.
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||
|
2014
|
|
% change
|
|
2013
|
|
2014
|
|
% change
|
|
2013
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
86,466
|
|
|
(1
|
)%
|
|
$
|
87,621
|
|
|
$
|
170,525
|
|
|
(4
|
)%
|
|
$
|
177,995
|
|
Interest expense
|
(1,939
|
)
|
|
(20
|
)%
|
|
(2,424
|
)
|
|
(3,884
|
)
|
|
(23
|
)%
|
|
(5,052
|
)
|
||||
Net interest income
|
84,527
|
|
|
(1
|
)%
|
|
85,197
|
|
|
166,641
|
|
|
(4
|
)%
|
|
172,943
|
|
||||
Other income
|
691
|
|
|
(69
|
)%
|
|
2,200
|
|
|
505
|
|
|
(87
|
)%
|
|
3,876
|
|
||||
Net revenues
|
85,218
|
|
|
(2
|
)%
|
|
87,397
|
|
|
167,146
|
|
|
(5
|
)%
|
|
176,819
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits
|
5,991
|
|
|
12
|
%
|
|
5,344
|
|
|
12,273
|
|
|
21
|
%
|
|
10,172
|
|
||||
Communications and information processing
|
1,258
|
|
|
60
|
%
|
|
785
|
|
|
1,943
|
|
|
34
|
%
|
|
1,455
|
|
||||
Occupancy and equipment
|
336
|
|
|
24
|
%
|
|
272
|
|
|
642
|
|
|
19
|
%
|
|
540
|
|
||||
Loan loss provision
|
1,979
|
|
|
(47
|
)%
|
|
3,737
|
|
|
3,615
|
|
|
(46
|
)%
|
|
6,660
|
|
||||
FDIC insurance premiums
|
3,333
|
|
|
142
|
%
|
|
1,375
|
|
|
5,415
|
|
|
91
|
%
|
|
2,831
|
|
||||
Affiliate deposit account servicing fees
|
9,208
|
|
|
19
|
%
|
|
7,762
|
|
|
17,671
|
|
|
20
|
%
|
|
14,733
|
|
||||
Other
|
6,315
|
|
|
64
|
%
|
|
3,846
|
|
|
11,731
|
|
|
43
|
%
|
|
8,209
|
|
||||
Total non-interest expenses
|
28,420
|
|
|
23
|
%
|
|
23,121
|
|
|
53,290
|
|
|
19
|
%
|
|
44,600
|
|
||||
Pre-tax income
|
$
|
56,798
|
|
|
(12
|
)%
|
|
$
|
64,276
|
|
|
$
|
113,856
|
|
|
(14
|
)%
|
|
$
|
132,219
|
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Net loan (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
||||||||
C&I loans
|
$
|
(1,793
|
)
|
|
$
|
(460
|
)
|
|
$
|
(1,829
|
)
|
|
$
|
(550
|
)
|
CRE loans
|
—
|
|
|
529
|
|
|
80
|
|
|
1,073
|
|
||||
Residential mortgage loans
|
(45
|
)
|
|
(1,350
|
)
|
|
190
|
|
|
(4,189
|
)
|
||||
SBL and other consumer loans
|
6
|
|
|
(67
|
)
|
|
18
|
|
|
(62
|
)
|
||||
Total
|
$
|
(1,832
|
)
|
|
$
|
(1,348
|
)
|
|
$
|
(1,541
|
)
|
|
$
|
(3,728
|
)
|
|
March 31,
2014 |
|
September 30,
2013 |
||||
|
(in thousands)
|
||||||
Allowance for loan losses:
|
|
|
|
||||
Loans held for investment:
|
|
|
|
|
|
||
C&I loans
|
$
|
95,702
|
|
|
$
|
95,994
|
|
CRE construction loans
|
1,799
|
|
|
1,000
|
|
||
CRE loans
|
22,276
|
|
|
19,266
|
|
||
Residential/mortgage loans
|
16,614
|
|
|
19,126
|
|
||
SBL and other consumer loans
|
1,549
|
|
|
1,115
|
|
||
Total
|
$
|
137,940
|
|
|
$
|
136,501
|
|
|
|
|
|
||||
Nonperforming assets:
|
|
|
|
|
|
||
Nonperforming loans:
|
|
|
|
|
|
||
C&I loans
|
$
|
—
|
|
|
$
|
89
|
|
CRE loans
|
24,324
|
|
|
25,512
|
|
||
Residential mortgage loans:
|
|
|
|
||||
Residential mortgage loans
|
69,732
|
|
|
75,889
|
|
||
Home equity loans/lines
|
408
|
|
|
468
|
|
||
Total nonperforming loans
|
94,464
|
|
|
101,958
|
|
||
Other real estate owned:
|
|
|
|
|
|
||
Residential first mortgage
|
2,968
|
|
|
2,434
|
|
||
Total other real estate owned
|
2,968
|
|
|
2,434
|
|
||
Total nonperforming assets
|
$
|
97,432
|
|
|
$
|
104,392
|
|
|
|
|
|
||||
Total loans:
|
|
|
|
||||
Loans held for sale, net
(1)
|
$
|
122,256
|
|
|
$
|
110,292
|
|
Loans held for investment:
|
|
|
|
|
|||
C&I loans
|
5,947,379
|
|
|
5,246,005
|
|
||
CRE construction loans
|
106,696
|
|
|
60,840
|
|
||
CRE loans
|
1,514,008
|
|
|
1,283,046
|
|
||
Residential mortgage loans
|
1,741,916
|
|
|
1,745,650
|
|
||
SBL and other consumer loans
|
772,975
|
|
|
555,805
|
|
||
Net unearned income and deferred expenses
|
(39,189
|
)
|
|
(43,936
|
)
|
||
Total loans held for investment
|
10,043,785
|
|
|
8,847,410
|
|
||
Total loans
|
$
|
10,166,041
|
|
|
$
|
8,957,702
|
|
(1)
|
Net of unearned income and deferred expenses.
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||
|
Allowance
|
|
Loan category as a % of total loans receivable
|
|
Allowance
|
|
Loan category as a % of total loans receivable
|
||||||
|
($ in thousands)
|
||||||||||||
Loans held for sale
|
$
|
—
|
|
|
1
|
%
|
|
$
|
—
|
|
|
1
|
%
|
C&I loans
|
80,577
|
|
|
49
|
%
|
|
81,733
|
|
|
50
|
%
|
||
CRE construction loans
|
850
|
|
|
—
|
|
|
674
|
|
|
—
|
|
||
CRE loans
|
19,911
|
|
|
13
|
%
|
|
16,566
|
|
|
12
|
%
|
||
Residential mortgage loans
|
16,604
|
|
|
17
|
%
|
|
19,117
|
|
|
20
|
%
|
||
SBL and other consumer loans
|
1,545
|
|
|
8
|
%
|
|
1,112
|
|
|
6
|
%
|
||
Foreign loans
|
18,453
|
|
|
12
|
%
|
|
17,299
|
|
|
11
|
%
|
||
Total
|
$
|
137,940
|
|
|
100
|
%
|
|
$
|
136,501
|
|
|
100
|
%
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
( in thousands)
|
||||||||||||||
Allowance for loan losses attributable to foreign loans, beginning of period:
|
$
|
18,573
|
|
|
$
|
9,471
|
|
|
$
|
17,299
|
|
|
$
|
7,955
|
|
Provision for loan losses - foreign loans
|
211
|
|
|
1,134
|
|
|
1,789
|
|
|
2,713
|
|
||||
Net charge-offs - foreign loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange translation adjustment
|
(331
|
)
|
|
(124
|
)
|
|
(635
|
)
|
|
(187
|
)
|
||||
Allowance for loan losses attributable to foreign loans, end of period
|
$
|
18,453
|
|
|
$
|
10,481
|
|
|
$
|
18,453
|
|
|
$
|
10,481
|
|
(1)
|
Excludes any hedged, non-U.S. currency amounts.
|
|
Three months ended March 31,
|
|
|||||||||||||||||||||
|
2014
|
|
|
2013
|
|
||||||||||||||||||
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
||||||||||
|
($ in thousands)
|
|
|||||||||||||||||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, net of unearned income
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans held for sale - all domestic
|
$
|
99,079
|
|
|
$
|
640
|
|
|
2.62
|
%
|
|
|
$
|
200,826
|
|
|
$
|
1,049
|
|
|
2.12
|
%
|
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
4,747,415
|
|
|
42,582
|
|
|
3.60
|
%
|
|
|
4,677,163
|
|
|
49,954
|
|
|
4.27
|
%
|
|
||||
CRE construction loans
|
31,975
|
|
|
342
|
|
|
4.28
|
%
|
|
|
34,824
|
|
|
465
|
|
|
5.34
|
%
|
|
||||
CRE loans
|
1,231,022
|
|
|
9,057
|
|
|
2.94
|
%
|
|
|
883,907
|
|
|
7,863
|
|
|
3.56
|
%
|
|
||||
Residential mortgage loans
|
1,752,172
|
|
|
12,932
|
|
|
2.95
|
%
|
|
|
1,693,849
|
|
|
13,000
|
|
|
3.07
|
%
|
|
||||
SBL and other consumer loans
|
711,788
|
|
|
4,914
|
|
|
2.76
|
%
|
|
|
414,698
|
|
|
2,978
|
|
|
2.87
|
%
|
|
||||
Foreign:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
944,662
|
|
|
10,433
|
|
|
4.42
|
%
|
|
|
552,609
|
|
|
6,367
|
|
|
4.61
|
%
|
|
||||
CRE construction loans
|
50,605
|
|
|
841
|
|
|
6.65
|
%
|
|
|
22,772
|
|
|
351
|
|
|
6.17
|
%
|
|
||||
CRE loans
|
195,123
|
|
|
1,866
|
|
|
3.83
|
%
|
|
|
144,950
|
|
|
2,543
|
|
|
7.02
|
%
|
(2)
|
||||
Residential mortgage loans
|
2,044
|
|
|
15
|
|
|
3.02
|
%
|
|
|
1,982
|
|
|
18
|
|
|
3.73
|
%
|
|
||||
SBL and other consumer loans
|
1,836
|
|
|
17
|
|
|
3.71
|
%
|
|
|
1,593
|
|
|
15
|
|
|
3.83
|
%
|
|
||||
Total loans, net
|
9,767,721
|
|
|
83,639
|
|
|
3.43
|
%
|
|
|
8,629,173
|
|
|
84,603
|
|
|
3.92
|
%
|
|
||||
Agency MBS
|
305,390
|
|
|
679
|
|
|
0.89
|
%
|
|
|
348,542
|
|
|
717
|
|
|
0.82
|
%
|
|
||||
Non-agency CMOs
|
136,337
|
|
|
826
|
|
|
2.42
|
%
|
|
|
157,587
|
|
|
1,042
|
|
|
2.64
|
%
|
|
||||
Money market funds, cash and cash equivalents
|
1,100,750
|
|
|
668
|
|
|
0.24
|
%
|
|
|
1,193,598
|
|
|
736
|
|
|
0.25
|
%
|
|
||||
FHLB stock, Federal Reserve Bank of Atlanta (“FRB”) stock, and other
|
82,797
|
|
|
654
|
|
|
3.20
|
%
|
|
|
85,774
|
|
|
523
|
|
|
2.47
|
%
|
|
||||
Total interest-earning banking assets
|
11,392,995
|
|
|
$
|
86,466
|
|
|
3.04
|
%
|
|
|
10,414,674
|
|
|
$
|
87,621
|
|
|
3.37
|
%
|
|
||
Non-interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
(140,376
|
)
|
|
|
|
|
|
|
|
|
(148,198
|
)
|
|
|
|
|
|
|
|
||||
Unrealized loss on available for sale securities
|
(10,123
|
)
|
|
|
|
|
|
|
|
|
(9,591
|
)
|
|
|
|
|
|
|
|
||||
Other assets
|
344,887
|
|
|
|
|
|
|
|
|
|
264,658
|
|
|
|
|
|
|
|
|
||||
Total non-interest-earning banking assets
|
194,388
|
|
|
|
|
|
|
|
|
|
106,869
|
|
|
|
|
|
|
|
|
||||
Total banking assets
|
$
|
11,587,383
|
|
|
|
|
|
|
|
|
|
$
|
10,521,543
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(continued on next page)
|
|
|
Three months ended March 31,
|
|
|||||||||||||||||||||
|
2014
|
|
|
2013
|
|
||||||||||||||||||
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
||||||||||
|
(continued from previous page)
|
|
|||||||||||||||||||||
|
($ in thousands)
|
|
|||||||||||||||||||||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Certificates of deposit
|
$
|
324,158
|
|
|
$
|
1,508
|
|
|
1.89
|
%
|
|
|
$
|
306,946
|
|
|
$
|
1,563
|
|
|
2.07
|
%
|
|
Money market, savings, and NOW accounts
|
9,944,070
|
|
|
431
|
|
|
0.02
|
%
|
|
|
8,990,435
|
|
|
849
|
|
|
0.04
|
%
|
|
||||
FHLB advances and other
|
117,931
|
|
|
—
|
|
|
—
|
|
|
|
78,565
|
|
|
12
|
|
|
0.06
|
%
|
|
||||
Total interest-bearing banking liabilities
|
10,386,159
|
|
|
1,939
|
|
|
0.08
|
%
|
|
|
9,375,946
|
|
|
2,424
|
|
|
0.10
|
%
|
|
||||
Non-interest-bearing banking liabilities
|
45,311
|
|
|
|
|
|
|
|
|
|
58,381
|
|
|
|
|
|
|
|
|
||||
Total banking liabilities
|
10,431,470
|
|
|
|
|
|
|
|
|
|
9,434,327
|
|
|
|
|
|
|
|
|
||||
Total banking shareholders’ equity
|
1,155,913
|
|
|
|
|
|
|
|
|
|
1,087,216
|
|
|
|
|
|
|
|
|
||||
Total banking liabilities and shareholders’ equity
|
$
|
11,587,383
|
|
|
|
|
|
|
|
|
|
$
|
10,521,543
|
|
|
|
|
|
|
|
|
||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
$
|
1,006,836
|
|
|
$
|
84,527
|
|
|
|
|
|
$
|
1,038,728
|
|
|
$
|
85,197
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank net interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Spread
|
|
|
|
|
|
|
2.96
|
%
|
(3)
|
|
|
|
|
|
|
|
3.27
|
%
|
(3)
|
||||
Margin (net yield on interest-earning banking assets)
|
|
|
|
|
|
|
2.97
|
%
|
(3)
|
|
|
|
|
|
|
|
3.28
|
%
|
(3)
|
||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
|
|
|
|
|
|
109.69
|
%
|
|
|
|
|
|
|
|
111.08
|
%
|
|
|||||
Annualized return on average:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total banking assets
|
|
|
|
|
|
|
1.31
|
%
|
|
|
|
|
|
|
|
|
1.62
|
%
|
|
||||
Total banking shareholders’ equity
|
|
|
|
|
|
|
13.15
|
%
|
|
|
|
|
|
|
|
|
15.71
|
%
|
|
||||
Average equity to average total banking assets
|
|
|
|
|
|
|
9.98
|
%
|
|
|
|
|
|
|
|
|
10.33
|
%
|
|
(1)
|
Nonaccrual loans are included in the average loan balances. Payment or income received on corporate nonaccrual loans are applied to principal. Income on other nonaccrual loans is recognized on a cash basis. Fee income on loans included in interest income for the
three months ended March 31, 2014
and
2013
was $9 million and $11 million, respectively.
|
(2)
|
The CRE yield was positively impacted by a loan payoff with a significant unearned discount.
|
(3)
|
The adjusted net interest spread and margin was 3.09% and 3.10%, respectively, for the
three months ended March 31, 2014
. The adjusted net interest spread and margin was 3.48% and 3.49%, respectively, for the three months ended March 31, 2013. The adjusted net interest spread and margin excludes the impact of excess liquidity beyond operating needs, primarily from RJBDP deposits.
|
|
Three months ended March 31,
|
||||||||||
|
2014 compared to 2013
|
||||||||||
|
Increase (decrease) due to
|
||||||||||
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
(in thousands)
|
||||||||||
Interest revenue:
|
|
|
|
|
|
||||||
Interest-earning banking assets:
|
|
|
|
|
|
||||||
Loans, net of unearned income:
|
|
|
|
|
|
||||||
Loans held for sale - all domestic
|
$
|
(531
|
)
|
|
$
|
122
|
|
|
$
|
(409
|
)
|
Loans held for investment:
|
|
|
|
|
|
|
|||||
Domestic:
|
|
|
|
|
|
||||||
C&I loans
|
750
|
|
|
(8,122
|
)
|
|
(7,372
|
)
|
|||
CRE construction loans
|
(38
|
)
|
|
(85
|
)
|
|
(123
|
)
|
|||
CRE loans
|
3,088
|
|
|
(1,894
|
)
|
|
1,194
|
|
|||
Residential mortgage loans
|
448
|
|
|
(516
|
)
|
|
(68
|
)
|
|||
SBL and other consumer loans
|
2,133
|
|
|
(197
|
)
|
|
1,936
|
|
|||
Foreign:
|
|
|
|
|
|
||||||
C&I loans
|
4,517
|
|
|
(451
|
)
|
|
4,066
|
|
|||
CRE construction loans
|
429
|
|
|
61
|
|
|
490
|
|
|||
CRE loans
|
880
|
|
|
(1,557
|
)
|
|
(677
|
)
|
|||
Residential mortgage loans
|
1
|
|
|
(4
|
)
|
|
(3
|
)
|
|||
SBL and other consumer loans
|
2
|
|
|
—
|
|
|
2
|
|
|||
Agency MBS
|
(89
|
)
|
|
51
|
|
|
(38
|
)
|
|||
Non-agency CMOs
|
(141
|
)
|
|
(75
|
)
|
|
(216
|
)
|
|||
Money market funds, cash and cash equivalents
|
(57
|
)
|
|
(11
|
)
|
|
(68
|
)
|
|||
FHLB stock, FRB stock, and other
|
(18
|
)
|
|
149
|
|
|
131
|
|
|||
Total interest-earning banking assets
|
11,374
|
|
|
(12,529
|
)
|
|
(1,155
|
)
|
|||
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|||
Deposits:
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit
|
88
|
|
|
(143
|
)
|
|
(55
|
)
|
|||
Money market, savings and NOW accounts
|
90
|
|
|
(508
|
)
|
|
(418
|
)
|
|||
FHLB advances and other
|
6
|
|
|
(18
|
)
|
|
(12
|
)
|
|||
Total interest-bearing banking liabilities
|
184
|
|
|
(669
|
)
|
|
(485
|
)
|
|||
Change in net interest income
|
$
|
11,190
|
|
|
$
|
(11,860
|
)
|
|
$
|
(670
|
)
|
|
Six months ended March 31,
|
|
|||||||||||||||||||||
|
2014
|
|
|
2013
|
|
||||||||||||||||||
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
||||||||||
|
($ in thousands)
|
|
|||||||||||||||||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, net of unearned income
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans held for sale - all domestic
|
$
|
119,336
|
|
|
$
|
1,462
|
|
|
2.46
|
%
|
|
|
$
|
184,557
|
|
|
$
|
2,019
|
|
|
2.19
|
%
|
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
4,583,375
|
|
|
85,319
|
|
|
3.70
|
%
|
|
|
4,612,136
|
|
|
101,859
|
|
|
4.39
|
%
|
|
||||
CRE construction loans
|
27,501
|
|
|
661
|
|
|
4.76
|
%
|
|
|
31,182
|
|
|
876
|
|
|
5.56
|
%
|
|
||||
CRE loans
|
1,172,499
|
|
|
17,550
|
|
|
2.96
|
%
|
|
|
867,980
|
|
|
14,923
|
|
|
3.40
|
%
|
|
||||
Residential mortgage loans
|
1,750,286
|
|
|
25,973
|
|
|
2.94
|
%
|
|
|
1,693,473
|
|
|
26,383
|
|
|
3.08
|
%
|
|
||||
SBL and other consumer loans
|
652,427
|
|
|
9,202
|
|
|
2.79
|
%
|
|
|
392,381
|
|
|
5,881
|
|
|
2.96
|
%
|
|
||||
Foreign:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
912,314
|
|
|
19,677
|
|
|
4.27
|
%
|
|
|
530,877
|
|
|
13,049
|
|
|
4.86
|
%
|
|
||||
CRE construction loans
|
43,163
|
|
|
1,259
|
|
|
5.77
|
%
|
|
|
21,761
|
|
|
697
|
|
|
6.34
|
%
|
|
||||
CRE loans
|
188,481
|
|
|
3,682
|
|
|
3.86
|
%
|
|
|
127,155
|
|
|
6,160
|
|
|
9.58
|
%
|
(2)
|
||||
Residential mortgage loans
|
1,951
|
|
|
30
|
|
|
3.06
|
%
|
|
|
1,825
|
|
|
34
|
|
|
3.72
|
%
|
|
||||
SBL and other consumer loans
|
1,776
|
|
|
33
|
|
|
3.72
|
%
|
|
|
1,636
|
|
|
32
|
|
|
3.90
|
%
|
|
||||
Total loans, net
|
9,453,109
|
|
|
164,848
|
|
|
3.46
|
%
|
|
|
8,464,963
|
|
|
171,913
|
|
|
4.02
|
%
|
|
||||
Agency MBS
|
312,523
|
|
|
1,369
|
|
|
0.88
|
%
|
|
|
344,813
|
|
|
1,452
|
|
|
0.84
|
%
|
|
||||
Non-agency CMOs
|
138,511
|
|
|
1,733
|
|
|
2.50
|
%
|
|
|
160,515
|
|
|
2,197
|
|
|
2.74
|
%
|
|
||||
Money market funds, cash and cash equivalents
|
1,018,829
|
|
|
1,322
|
|
|
0.26
|
%
|
|
|
1,050,185
|
|
|
1,330
|
|
|
0.25
|
%
|
|
||||
FHLB stock, FRB stock, and other
|
81,262
|
|
|
1,253
|
|
|
3.09
|
%
|
|
|
84,014
|
|
|
1,103
|
|
|
2.63
|
%
|
|
||||
Total interest-earning banking assets
|
11,004,234
|
|
|
$
|
170,525
|
|
|
3.07
|
%
|
|
|
10,104,490
|
|
|
$
|
177,995
|
|
|
3.49
|
%
|
|
||
Non-interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
(138,946
|
)
|
|
|
|
|
|
|
|
|
(148,142
|
)
|
|
|
|
|
|
|
|
||||
Unrealized loss on available for sale securities
|
(10,990
|
)
|
|
|
|
|
|
|
|
|
(12,478
|
)
|
|
|
|
|
|
|
|
||||
Other assets
|
297,140
|
|
|
|
|
|
|
|
|
|
275,948
|
|
|
|
|
|
|
|
|
||||
Total non-interest-earning banking assets
|
147,204
|
|
|
|
|
|
|
|
|
|
115,328
|
|
|
|
|
|
|
|
|
||||
Total banking assets
|
$
|
11,151,438
|
|
|
|
|
|
|
|
|
|
$
|
10,219,818
|
|
|
|
|
|
|
|
|
||
(continued on next page)
|
|
|
Six months ended March 31,
|
|
|||||||||||||||||||||
|
2014
|
|
|
2013
|
|
||||||||||||||||||
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
||||||||||
|
(continued from previous page)
|
|
|||||||||||||||||||||
|
($ in thousands)
|
|
|||||||||||||||||||||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Certificates of deposit
|
$
|
322,075
|
|
|
$
|
3,056
|
|
|
1.90
|
%
|
|
|
$
|
312,265
|
|
|
$
|
3,226
|
|
|
2.07
|
%
|
|
Money market, savings, and NOW accounts
|
9,551,067
|
|
|
828
|
|
|
0.02
|
%
|
|
|
8,702,495
|
|
|
1,662
|
|
|
0.04
|
%
|
|
||||
FHLB advances and other
|
105,892
|
|
|
—
|
|
|
—
|
|
|
|
65,034
|
|
|
164
|
|
|
0.51
|
%
|
|
||||
Total interest-bearing banking liabilities
|
9,979,034
|
|
|
3,884
|
|
|
0.08
|
%
|
|
|
9,079,794
|
|
|
5,052
|
|
|
0.11
|
%
|
|
||||
Non-interest-bearing banking liabilities
|
37,727
|
|
|
|
|
|
|
|
|
|
70,694
|
|
|
|
|
|
|
|
|
||||
Total banking liabilities
|
10,016,761
|
|
|
|
|
|
|
|
|
|
9,150,488
|
|
|
|
|
|
|
|
|
||||
Total banking shareholders’ equity
|
1,134,677
|
|
|
|
|
|
|
|
|
|
1,069,330
|
|
|
|
|
|
|
|
|
||||
Total banking liabilities and shareholders’ equity
|
$
|
11,151,438
|
|
|
|
|
|
|
|
|
|
$
|
10,219,818
|
|
|
|
|
|
|
|
|
||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
$
|
1,025,200
|
|
|
$
|
166,641
|
|
|
|
|
|
$
|
1,024,696
|
|
|
$
|
172,943
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank net interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Spread
|
|
|
|
|
|
|
2.99
|
%
|
(3)
|
|
|
|
|
|
|
|
3.38
|
%
|
(3)
|
||||
Margin (net yield on interest-earning banking assets)
|
|
|
|
|
|
|
3.00
|
%
|
(3)
|
|
|
|
|
|
|
|
3.39
|
%
|
(3)
|
||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
|
|
|
|
|
|
110.27
|
%
|
|
|
|
|
|
|
|
111.29
|
%
|
|
|||||
Annualized return on average:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total banking assets
|
|
|
|
|
|
|
1.34
|
%
|
|
|
|
|
|
|
|
|
1.67
|
%
|
|
||||
Total banking shareholders’ equity
|
|
|
|
|
|
|
13.16
|
%
|
|
|
|
|
|
|
|
|
15.98
|
%
|
|
||||
Average equity to average total banking assets
|
|
|
|
|
|
|
10.18
|
%
|
|
|
|
|
|
|
|
|
10.46
|
%
|
|
(1)
|
Nonaccrual loans are included in the average loan balances. Payment or income received on corporate nonaccrual loans are applied to principal. Income on other nonaccrual loans is recognized on a cash basis. Fee income on loans included in interest income for the
six months ended March 31, 2014
and
2013
was $17 million and $25 million, respectively.
|
(2)
|
The CRE yield was positively impacted by a loan payoff with a significant unearned discount.
|
(3)
|
The adjusted net interest spread and margin was 3.11% and 3.12%, respectively, for the
six months ended March 31, 2014
. The adjusted net interest spread and margin was 3.56% and 3.57%, respectively, for the six months ended March 31, 2013. The adjusted net interest spread and margin excludes the impact of excess liquidity beyond operating needs, primarily from RJBDP deposits.
|
|
Six months ended March 31,
|
||||||||||
|
2014 compared to 2013
|
||||||||||
|
Increase (decrease) due to
|
||||||||||
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
(in thousands)
|
||||||||||
Interest revenue:
|
|
|
|
|
|
||||||
Interest-earning banking assets:
|
|
|
|
|
|
||||||
Loans, net of unearned income:
|
|
|
|
|
|
||||||
Loans held for sale - all domestic
|
$
|
(714
|
)
|
|
$
|
157
|
|
|
$
|
(557
|
)
|
Loans held for investment:
|
|
|
|
|
|
|
|||||
Domestic:
|
|
|
|
|
|
||||||
C&I loans
|
(635
|
)
|
|
(15,905
|
)
|
|
(16,540
|
)
|
|||
CRE construction loans
|
(103
|
)
|
|
(112
|
)
|
|
(215
|
)
|
|||
CRE loans
|
5,236
|
|
|
(2,609
|
)
|
|
2,627
|
|
|||
Residential mortgage loans
|
885
|
|
|
(1,295
|
)
|
|
(410
|
)
|
|||
SBL and other consumer loans
|
3,897
|
|
|
(576
|
)
|
|
3,321
|
|
|||
Foreign:
|
|
|
|
|
|
||||||
C&I loans
|
9,375
|
|
|
(2,747
|
)
|
|
6,628
|
|
|||
CRE construction loans
|
685
|
|
|
(123
|
)
|
|
562
|
|
|||
CRE loans
|
2,971
|
|
|
(5,449
|
)
|
|
(2,478
|
)
|
|||
Residential mortgage loans
|
2
|
|
|
(6
|
)
|
|
(4
|
)
|
|||
SBL and other consumer loans
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Agency MBS
|
(136
|
)
|
|
53
|
|
|
(83
|
)
|
|||
Non-agency CMOs
|
(301
|
)
|
|
(163
|
)
|
|
(464
|
)
|
|||
Money market funds, cash and cash equivalents
|
(40
|
)
|
|
32
|
|
|
(8
|
)
|
|||
FHLB stock, FRB stock, and other
|
(36
|
)
|
|
186
|
|
|
150
|
|
|||
Total interest-earning banking assets
|
21,088
|
|
|
(28,558
|
)
|
|
(7,470
|
)
|
|||
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|||
Deposits:
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit
|
101
|
|
|
(271
|
)
|
|
(170
|
)
|
|||
Money market, savings and NOW accounts
|
162
|
|
|
(996
|
)
|
|
(834
|
)
|
|||
FHLB advances and other
|
103
|
|
|
(267
|
)
|
|
(164
|
)
|
|||
Total interest-bearing banking liabilities
|
366
|
|
|
(1,534
|
)
|
|
(1,168
|
)
|
|||
Change in net interest income
|
$
|
20,722
|
|
|
$
|
(27,024
|
)
|
|
$
|
(6,302
|
)
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||
|
2014
|
|
% change
|
|
2013
|
|
2014
|
|
% change
|
|
2013
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
3,932
|
|
|
19
|
%
|
|
$
|
3,295
|
|
|
$
|
7,481
|
|
|
14
|
%
|
|
$
|
6,584
|
|
Investment advisory fees
|
275
|
|
|
(24
|
)%
|
|
361
|
|
|
558
|
|
|
(23
|
)%
|
|
722
|
|
||||
Other
|
(225
|
)
|
|
NM
|
|
|
66,406
|
|
|
16,032
|
|
|
(82
|
)%
|
|
88,215
|
|
||||
Total revenues
|
3,982
|
|
|
(94
|
)%
|
|
70,062
|
|
|
24,071
|
|
|
(75
|
)%
|
|
95,521
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
19,608
|
|
|
(1
|
)%
|
|
19,835
|
|
|
38,877
|
|
|
(1
|
)%
|
|
39,449
|
|
||||
Net revenues
|
(15,626
|
)
|
|
(131
|
)%
|
|
50,227
|
|
|
(14,806
|
)
|
|
(126
|
)%
|
|
56,072
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and other
|
11,811
|
|
|
21
|
%
|
|
9,749
|
|
|
21,302
|
|
|
19
|
%
|
|
17,855
|
|
||||
Acquisition related expenses
|
—
|
|
|
(100
|
)%
|
|
20,922
|
|
|
—
|
|
|
(100
|
)%
|
|
38,304
|
|
||||
Total non-interest expenses
|
11,811
|
|
|
(61
|
)%
|
|
30,671
|
|
|
21,302
|
|
|
(62
|
)%
|
|
56,159
|
|
||||
Loss before taxes and including noncontrolling interests
|
(27,437
|
)
|
|
240
|
%
|
|
19,556
|
|
|
(36,108
|
)
|
|
NM
|
|
|
(87
|
)
|
||||
Noncontrolling interests
|
447
|
|
|
|
|
43,648
|
|
|
6,701
|
|
|
|
|
56,447
|
|
||||||
Pre-tax loss excluding noncontrolling interests
|
$
|
(27,884
|
)
|
|
(16
|
)%
|
|
$
|
(24,092
|
)
|
|
$
|
(42,809
|
)
|
|
24
|
%
|
|
$
|
(56,534
|
)
|
|
For the three months ended March 31,
|
|
For the six months ended March 31,
|
||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
RJF return on assets
(1)
|
1.9%
|
|
1.4%
|
|
1.9%
|
|
1.5%
|
RJF return on equity
(2)
|
10.9%
|
|
9.3%
|
|
11.7%
|
|
9.8%
|
Equity to assets
(3)
|
18.6%
|
|
17.2%
|
|
17.8%
|
|
17.3%
|
Dividend payout ratio
(4)
|
22.2%
|
|
25.0%
|
|
20.8%
|
|
23.9%
|
(1)
|
Computed as net income attributable to RJF for the period indicated, divided by average assets (the sum of total assets at the beginning and end of the period, divided by two) the product of which is then annualized.
|
(2)
|
Computed by utilizing the net income attributable to RJF for the period indicated, divided by the average equity attributable to RJF (which is computed by adding the total equity attributable to RJF as of the date indicated plus the immediately preceding September 30 amount for the respective period, divided by two). The result is then annualized.
|
(3)
|
Computed as average equity (the sum of total equity at the beginning and end of the period, divided by two), divided by average assets (the sum of total assets at the beginning and end of the period, divided by two).
|
(4)
|
Computed as dividends declared per common share during the period as a percentage of diluted earnings per common share.
|
Cash and cash equivalents:
|
March 31, 2014
|
||
|
(in thousands)
|
||
RJF
|
$
|
275,751
|
|
RJ&A
(1)
|
1,012,743
|
|
|
RJ Bank
|
1,004,613
|
|
|
Other subsidiaries
|
348,769
|
|
|
Total cash and cash equivalents
|
$
|
2,641,876
|
|
(1)
|
RJF has loaned
$814 million
to RJ&A as of
March 31, 2014
, which RJ&A has invested on behalf of RJF in cash and cash equivalents.
|
|
Committed secured
(1)
|
|
Uncommitted secured
(1)(2)
|
|
Uncommitted unsecured
(1)(2)
|
|
Total
|
||||||||||||||||||||||||
|
Financing
amount
|
|
Outstanding
balance
|
|
Financing
amount
|
|
Outstanding
balance
|
|
Financing
amount
|
|
Outstanding
balance
|
|
Financing
amount
|
|
Outstanding
balance
|
||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||
RJ&A
|
$
|
400,000
|
|
|
$
|
70,000
|
|
|
$
|
1,750,000
|
|
|
$
|
194,663
|
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
2,500,000
|
|
|
$
|
264,663
|
|
RJ Securities, Inc.
|
100,000
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|
5,000
|
|
||||||||
RJF
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|
—
|
|
|
100,000
|
|
|
—
|
|
||||||||
Total
|
$
|
500,000
|
|
|
$
|
75,000
|
|
|
$
|
1,750,000
|
|
|
$
|
194,663
|
|
|
$
|
450,000
|
|
|
$
|
—
|
|
|
$
|
2,700,000
|
|
|
$
|
269,663
|
|
Total number of agreements
|
4
|
|
|
|
|
|
6
|
|
|
|
|
|
7
|
|
|
|
|
|
17
|
|
|
|
|
(1)
|
Our ability to borrow is dependent upon compliance with the conditions in the various committed loan agreements and collateral eligibility requirements.
|
(2)
|
Lenders are under no contractual obligation to lend to us under uncommitted credit facilities.
|
|
Repurchase transactions
|
|
Reverse repurchase transactions
|
||||||||||||||||||||
For the quarter ended:
|
Average daily
balance
outstanding
|
|
Maximum month-end
balance outstanding
during the quarter
|
|
End of period
balance
outstanding
|
|
Average daily
balance
outstanding
|
|
Maximum month-end
balance outstanding
during the quarter
|
|
End of period
balance
outstanding
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
March 31, 2014
|
$
|
316,581
|
|
|
$
|
377,677
|
|
|
$
|
377,677
|
|
|
$
|
685,402
|
|
|
$
|
674,694
|
|
|
$
|
637,486
|
|
December 31, 2013
|
328,867
|
|
|
363,845
|
|
|
345,701
|
|
|
642,940
|
|
|
658,244
|
|
|
638,893
|
|
||||||
September 30, 2013
|
267,984
|
|
|
300,933
|
|
|
300,933
|
|
|
643,422
|
|
|
709,120
|
|
|
709,120
|
|
||||||
June 30, 2013
|
335,497
|
|
|
397,398
|
|
|
248,382
|
|
|
689,219
|
|
|
744,084
|
|
|
578,147
|
|
||||||
March 31, 2013
|
287,797
|
|
|
397,712
|
|
|
397,712
|
|
|
585,824
|
|
|
742,498
|
|
|
623,966
|
|
Rating Agency
|
Rating
|
|
Outlook
|
Standard & Poor’s Ratings Services (“S&P”)
|
BBB
|
|
Stable
|
Moody’s Investors Services (“Moody’s”)
|
Baa2
|
|
Stable
|
|
Six months ended March 31, 2014
|
|
VaR at
|
||||||||||||||||
|
High
|
|
Low
|
|
Daily
Average
|
|
March 31,
2014 |
|
September 30, 2013
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Daily VaR
|
$
|
2,647
|
|
|
$
|
999
|
|
|
$
|
1,586
|
|
|
$
|
1,747
|
|
|
$
|
1,471
|
|
Instantaneous
changes in rate
|
|
Net interest
income
|
|
Projected change in
net interest income
|
|
|
($ in thousands)
|
|
|
+300
|
|
$404,296
|
|
11.34%
|
+200
|
|
$399,750
|
|
10.09%
|
+100
|
|
$396,803
|
|
9.28%
|
0
|
|
$363,120
|
|
—
|
-100
|
|
$344,122
|
|
(5.23)%
|
|
Repricing opportunities
|
||||||||||||||
|
0 - 6 months
|
|
7 - 12 months
|
|
1 - 5 years
|
|
5 or more years
|
||||||||
|
(in thousands)
|
||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
9,119,319
|
|
|
$
|
376,757
|
|
|
$
|
436,454
|
|
|
$
|
272,700
|
|
Available for sale securities
|
223,212
|
|
|
18,546
|
|
|
118,586
|
|
|
71,208
|
|
||||
Other investments
|
1,088,972
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total interest-earning assets
|
10,431,503
|
|
|
395,303
|
|
|
555,040
|
|
|
343,908
|
|
||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Transaction and savings accounts
|
10,087,744
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Certificates of deposit
|
26,886
|
|
|
36,891
|
|
|
263,146
|
|
|
28
|
|
||||
Total interest-bearing liabilities
|
10,114,630
|
|
|
36,891
|
|
|
263,146
|
|
|
28
|
|
||||
Gap
|
316,873
|
|
|
358,412
|
|
|
291,894
|
|
|
343,880
|
|
||||
Cumulative gap
|
$
|
316,873
|
|
|
$
|
675,285
|
|
|
$
|
967,179
|
|
|
$
|
1,311,059
|
|
|
Due in
|
||||||||||||||
|
One year or less
|
|
>One year – five
years
|
|
> 5 years
|
|
Total
|
||||||||
|
(in thousands)
|
||||||||||||||
Loans held for sale
|
$
|
—
|
|
|
$
|
49
|
|
|
$
|
109,573
|
|
|
$
|
109,622
|
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|||||
C&I loans
|
47,810
|
|
|
3,406,495
|
|
|
2,493,074
|
|
|
5,947,379
|
|
||||
CRE construction loans
|
61,675
|
|
|
45,021
|
|
|
—
|
|
|
106,696
|
|
||||
CRE loans
|
121,927
|
|
|
1,179,572
|
|
|
212,509
|
|
|
1,514,008
|
|
||||
Residential mortgage loans
|
3,757
|
|
|
18,224
|
|
|
1,719,935
|
|
|
1,741,916
|
|
||||
SBL and other consumer loans
|
768,926
|
|
|
4,000
|
|
|
49
|
|
|
772,975
|
|
||||
Total loans held for investment
|
1,004,095
|
|
|
4,653,312
|
|
|
4,425,567
|
|
|
10,082,974
|
|
||||
Total loans
|
$
|
1,004,095
|
|
|
$
|
4,653,361
|
|
|
$
|
4,535,140
|
|
|
$
|
10,192,596
|
|
|
Interest rate type
|
||||||||||
|
Fixed
|
|
Adjustable
|
|
Total
(1)
|
||||||
|
(in thousands)
|
||||||||||
Loans held for sale
|
$
|
4,568
|
|
|
$
|
105,054
|
|
|
$
|
109,622
|
|
Loans held for investment:
|
|
|
|
|
|
|
|
|
|||
C&I loans
|
32,296
|
|
|
5,867,273
|
|
|
5,899,569
|
|
|||
CRE construction loans
|
—
|
|
|
45,021
|
|
|
45,021
|
|
|||
CRE loans
|
67,434
|
|
|
1,324,647
|
|
|
1,392,081
|
|
|||
Residential mortgage loans
|
258,792
|
|
|
1,479,367
|
|
(2)
|
1,738,159
|
|
|||
SBL and other consumer loans
|
4,049
|
|
|
—
|
|
|
4,049
|
|
|||
Total loans held for investment
|
362,571
|
|
|
8,716,308
|
|
|
9,078,879
|
|
|||
Total loans
|
$
|
367,139
|
|
|
$
|
8,821,362
|
|
|
$
|
9,188,501
|
|
(1)
|
Excludes any net unearned income and deferred expenses.
|
(2)
|
See the discussion within the “Risk Monitoring process” section of Item 3 in this Form 10-Q, for additional information regarding RJ Bank’s interest-only loan portfolio and related repricing schedule.
|
|
Six months ended March 31,
|
||||||
|
2014
|
|
2013
|
||||
|
($ in thousands)
|
||||||
Allowance for loan losses, beginning of year
|
$
|
136,501
|
|
|
$
|
147,541
|
|
Provision for loan losses
|
3,615
|
|
|
6,660
|
|
||
Charge-offs:
|
|
|
|
|
|
||
C&I loans
|
(1,845
|
)
|
|
(550
|
)
|
||
Residential mortgage loans
|
(879
|
)
|
|
(5,066
|
)
|
||
SBL and other consumer
|
—
|
|
|
(75
|
)
|
||
Total charge-offs
|
(2,724
|
)
|
|
(5,691
|
)
|
||
Recoveries:
|
|
|
|
|
|
||
C&I loans
|
16
|
|
|
—
|
|
||
CRE loans
|
80
|
|
|
1,073
|
|
||
Residential mortgage loans
|
1,069
|
|
|
877
|
|
||
SBL and other consumer
|
18
|
|
|
13
|
|
||
Total recoveries
|
1,183
|
|
|
1,963
|
|
||
Net recoveries/(charge-offs)
|
(1,541
|
)
|
|
(3,728
|
)
|
||
Foreign exchange translation adjustment
|
(635
|
)
|
|
(187
|
)
|
||
Allowance for loan losses, end of period
|
$
|
137,940
|
|
|
$
|
150,286
|
|
|
|
|
|
||||
Allowance for loan losses to bank loans outstanding
|
1.37
|
%
|
|
1.75
|
%
|
|
Three months ended March 31,
|
|
Six months ended March 31,
|
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||||||
|
Net loan
charge-off
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
charge-off
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
charge-off
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
charge-off
amount
|
|
% of avg.
outstanding
loans
|
||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||
C&I loans
|
$
|
(1,793
|
)
|
|
0.13
|
%
|
|
$
|
(460
|
)
|
|
0.04
|
%
|
|
$
|
(1,829
|
)
|
|
0.07
|
%
|
|
$
|
(550
|
)
|
|
0.02
|
%
|
CRE loans
|
—
|
|
|
—
|
|
|
529
|
|
|
0.21
|
%
|
|
80
|
|
|
0.01
|
%
|
|
1,073
|
|
|
0.22
|
%
|
||||
Residential mortgage loans
|
(45
|
)
|
|
0.01
|
%
|
|
(1,350
|
)
|
|
0.32
|
%
|
|
190
|
|
|
0.02
|
%
|
|
(4,189
|
)
|
|
0.49
|
%
|
||||
SBL and other consumer loans
|
6
|
|
|
—
|
|
|
(67
|
)
|
|
0.06
|
%
|
|
18
|
|
|
0.01
|
%
|
|
(62
|
)
|
|
0.03
|
%
|
||||
Total
|
$
|
(1,832
|
)
|
|
0.08
|
%
|
|
$
|
(1,348
|
)
|
|
0.06
|
%
|
|
$
|
(1,541
|
)
|
|
0.03
|
%
|
|
$
|
(3,728
|
)
|
|
0.09
|
%
|
|
March 31, 2014
|
|
September 30, 2013
|
||||||||||||
|
Nonperforming
loan balance
|
|
Allowance for
loan losses
balance
|
|
Nonperforming
loan balance
|
|
Allowance for
loan losses
balance
|
||||||||
|
(in thousands)
|
||||||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
||||
C&I loans
|
$
|
—
|
|
|
$
|
(95,702
|
)
|
|
$
|
89
|
|
|
$
|
(95,994
|
)
|
CRE construction loans
|
—
|
|
|
(1,799
|
)
|
|
—
|
|
|
(1,000
|
)
|
||||
CRE loans
|
24,324
|
|
|
(22,276
|
)
|
|
25,512
|
|
|
(19,266
|
)
|
||||
Residential mortgage loans
|
70,140
|
|
|
(16,614
|
)
|
|
76,357
|
|
|
(19,126
|
)
|
||||
SBL and other consumer loans
|
—
|
|
|
(1,549
|
)
|
|
—
|
|
|
(1,115
|
)
|
||||
Total
|
$
|
94,464
|
|
|
$
|
(137,940
|
)
|
|
$
|
101,958
|
|
|
$
|
(136,501
|
)
|
|
Delinquent residential loans (amount)
|
|
Delinquent residential loans as a percentage of outstanding loan balances
|
|||||||||||||||||
|
30-89 days
|
|
90 days or more
|
|
Total
(1)
|
|
30-89 days
|
|
90 days or more
|
|
Total
(1)
|
|||||||||
|
($ in thousands)
|
|||||||||||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential Mortgage Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
First mortgage loans
|
$
|
4,712
|
|
|
$
|
40,086
|
|
|
$
|
44,798
|
|
|
0.27
|
%
|
|
2.33
|
%
|
|
2.60
|
%
|
Home equity loans/lines
|
—
|
|
|
148
|
|
|
148
|
|
|
—
|
|
|
0.67
|
%
|
|
0.67
|
%
|
|||
Total residential mortgage loans
|
$
|
4,712
|
|
|
$
|
40,234
|
|
|
$
|
44,946
|
|
|
0.27
|
%
|
|
2.31
|
%
|
|
2.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Residential Mortgage Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First mortgage loans
|
$
|
6,824
|
|
|
$
|
43,004
|
|
|
$
|
49,828
|
|
|
0.40
|
%
|
|
2.49
|
%
|
|
2.89
|
%
|
Home equity loans/lines
|
—
|
|
|
372
|
|
|
372
|
|
|
—
|
|
|
1.66
|
%
|
|
1.66
|
%
|
|||
Total residential mortgage loans
|
$
|
6,824
|
|
|
$
|
43,376
|
|
|
$
|
50,200
|
|
|
0.39
|
%
|
|
2.48
|
%
|
|
2.87
|
%
|
(1)
|
Comprised of loans which are two or more payments past due as well as loans in process of foreclosure.
|
March 31, 2014
|
|
September 30, 2013
|
|||||
($ outstanding as a % of RJ Bank total assets)
|
|||||||
2.8
|
%
|
|
FL
|
|
3.0
|
%
|
FL
|
2.2
|
%
|
|
CA
(1)
|
|
2.4
|
%
|
CA
(1)
|
1.0
|
%
|
|
NY
|
|
1.2
|
%
|
NY
|
0.7
|
%
|
|
NJ
|
|
0.8
|
%
|
NJ
|
0.6
|
%
|
|
TX
|
|
0.7
|
%
|
VA
|
(1)
|
The concentration ratio for the state of California excludes
1.2%
for
March 31, 2014
and
1.4%
for
September 30, 2013
for loans purchased from a large investment grade institution that have full repurchase recourse for any delinquent loans.
|
|
March 31, 2014
|
||
|
(in thousands)
|
||
One year or less
|
$
|
228,366
|
|
Over one year through two years
|
9,125
|
|
|
Over two years through three years
|
9,905
|
|
|
Over three years through four years
|
16,763
|
|
|
Over four years through five years
|
24,479
|
|
|
Over five years
|
44,632
|
|
|
Total outstanding residential interest-only loan balance
|
$
|
333,270
|
|
|
March 31, 2014
|
|
September 30, 2013
|
Residential first mortgage loan weighted-average LTV/FICO
(1)
|
65%/753
|
|
66%/754
|
(1)
|
At origination. Small group of local loans representing less than
1%
of residential portfolio excluded.
|
March 31, 2014
|
|
September 30, 2013
|
||||||
($ outstanding as a % of RJ Bank total assets)
|
||||||||
4.1
|
%
|
|
Technology
|
|
3.5
|
%
|
|
Media communications
|
4.1
|
%
|
|
Media communications
|
|
3.4
|
%
|
|
Business systems and services
|
3.6
|
%
|
|
Business systems and services
|
|
3.3
|
%
|
|
Automotive/transportation
|
3.6
|
%
|
|
Office
|
|
3.1
|
%
|
|
Pharmaceuticals
|
3.3
|
%
|
|
Pharmaceuticals
|
|
3.1
|
%
|
|
Retail real estate
|
ITEM 2.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
Number of shares
purchased
(1)
|
|
Average price
per share
|
|||
October 1, 2013 – October 31, 2013
|
11,890
|
|
|
$
|
43.16
|
|
November 1, 2013 – November 30, 2013
|
68,503
|
|
|
48.38
|
|
|
December 1, 2013 – December 31, 2013
|
24,774
|
|
|
48.48
|
|
|
First quarter
|
105,167
|
|
|
$
|
47.82
|
|
|
|
|
|
|||
January 1, 2014 – January 31, 2014
|
1,427
|
|
|
$
|
52.18
|
|
February 1, 2014 – February 28, 2014
|
16,423
|
|
|
52.06
|
|
|
March 1, 2014 – March 31, 2014
|
2,631
|
|
|
51.39
|
|
|
Second quarter
|
20,481
|
|
|
$
|
51.98
|
|
Year-to-date
|
125,648
|
|
|
$
|
48.49
|
|
(1)
|
We purchase our own stock in conjunction with a number of activities, each of which are described below. We do not have a formal stock repurchase plan. As of
March 31, 2014
, there is
$49.4 million
remaining on the current authorization of our Board of Directors for open market share repurchases.
|
Item 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
Item 5.
|
OTHER INFORMATION
|
•
|
the amount of any securities that underlie any derivative security that constitutes a “call equivalent position” held by the shareholder,
|
•
|
dividend rights separable from the underlying shares,
|
•
|
any legal proceeding in which such shareholder is a participant involving the Company or its officers or directors,
|
•
|
any other material relationship between such shareholder and the Company, its affiliates or competitors,
|
•
|
any material interest in any material contract of such shareholder with the Company, its affiliates or competitors, and
|
•
|
any other shareholder information that would be required to be disclosed in a proxy statement in connection with the proposal
|
•
|
a brief description of the business, the reasons for conducting such business at the meeting and any material interest of the shareholder in such business,
|
•
|
the text of the proposal or resolution,
|
•
|
a description of any arrangements among proposing shareholders and any other person in connection with the proposal, and
|
•
|
any other information that would be required to be disclosed in a proxy statement in connection with the proposal.
|
•
|
all information about the candidate that would be required in a shareholder’s notice if such candidate were the proposing shareholder,
|
•
|
all information about the candidate that would be required by SEC rules in a proxy statement for a contested election,
|
•
|
a description of any material interest in any material contract among the nominating shareholder(s) and each candidate or any other participant in such solicitation, and
|
•
|
a questionnaire, representation and agreement from the candidate as described below.
|
•
|
a completed written questionnaire regarding such candidate’s background, qualifications, stock ownership and independence, and
|
•
|
a written representation and agreement that such candidate:
|
◦
|
is not and, if elected, will not become a party to:
|
▪
|
any agreement with any person as to how such candidate, if elected, will vote on any issue (a “Voting Commitment”), or
|
▪
|
any Voting Commitment that could interfere with such candidate’s ability to comply with such proposed nominee’s fiduciary duties under applicable law,
|
◦
|
is not, and will not become a party to, any agreement with any person other than the Company with respect to any direct or indirect compensation for service as a director, and
|
◦
|
if elected, will comply with all applicable corporate governance, conflict of interest, confidentiality, stock ownership and trading and other policies and guidelines of the Company; and
|
•
|
shall not be a member of the board of directors of more than three (3) other public companies,
|
•
|
shall not have been:
|
◦
|
convicted in a criminal proceeding, or the named subject in a pending proceeding (other than traffic violations and other minor offenses),
|
◦
|
the subject of any order or judgment of any federal or state court or any professional disciplinary body, which limited such candidate from any activity in connection with any security or commodity, or the right to be associated with persons engaged in such activities, or finding that he or she had violated any securities laws or federal commodities laws,
|
◦
|
the subject of any sanction of any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization that has disciplinary authority, or
|
◦
|
suspended or barred from being associated with an issuer or public accounting firm or from practicing before the SEC or any similar non-U.S. authority.
|
•
|
a reasonably brief description of the purpose and the business proposed to be conducted, the reasons for conducting such business and any material interest of the Requesting Person in such business, and
|
•
|
a reasonably detailed description of all agreements
|
◦
|
among any of the Requesting Persons, or
|
◦
|
among any Requesting Person and any other persons in connection with the request or the business proposed; and
|
•
|
when no prior action of the Board of Directors is required, the first date on which valid signed written consents constituting at least 10% of the voting power of the Company and setting forth the action proposed to be taken are delivered to the Company, and
|
•
|
when prior action by the Board of Directors is required, the close of business on the date on which the Board of Directors adopts the resolution taking such prior action.
|
•
|
a reasonably brief description of the actions, the reasons for taking such actions and any material interest in such actions of each Soliciting Person, and
|
•
|
a reasonably detailed description of all agreements
|
◦
|
among any of the Soliciting Persons, or
|
◦
|
among any Soliciting Person and any other persons in connection with the request or such actions; and
|
Item 6.
|
EXHIBITS
|
3.1
|
|
|
Restated Articles of Incorporation of Raymond James Financial, Inc. as filed with the Secretary of State of Florida on November 25, 2008, incorporated by reference to exhibit 3(i).1 to the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on November 28, 2008.
|
|
|
|
|
3.2
|
|
|
Amended and Restated By-Laws of Raymond James Financial, Inc. reflecting amendments adopted by the Board of Directors on February 23, 2014, incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 26, 2014.
|
|
|
|
|
10.13.4
|
|
|
Fifth Third Bank Uncommitted Line of Credit Agreement Extension Letter, dated March 24, 2014.
|
|
|
|
|
10.16.9
|
|
|
Raymond James Financial, Inc. 2012 Stock Incentive Plan Sub-Plan for French Employees with Form of Restricted Stock Unit Agreement, adopted and approved on February 20, 2014.
|
|
|
|
|
10.25
|
|
|
Letter Agreement, dated January 9, 2014, between Raymond James Financial, Inc. and Chester B. Helck regarding his retirement and transition of service and employment matters.
|
|
|
|
|
11
|
|
|
Statement Re: Computation of per Share Earnings (the calculation of per share earnings is included in Part I, Item 1 in the Notes to Condensed Consolidated Financial Statements (Earnings Per Share) and is omitted here in accordance with Section (b)(11) of Item 601 of Regulation S-K).
|
|
|
|
|
12
|
|
|
Statement of Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends.
|
|
|
|
|
31.1
|
|
|
Certification of Paul C. Reilly pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
31.2
|
|
|
Certification of Jeffrey P. Julien pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
32
|
|
|
Certification of Paul C. Reilly and Jeffrey P. Julien pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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RAYMOND JAMES FINANCIAL, INC.
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(Registrant)
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Date: May 9, 2014
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/s/ Paul C. Reilly
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Paul C. Reilly
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Chief Executive Officer
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Date: May 9, 2014
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/s/ Jeffrey P. Julien
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Jeffrey P. Julien
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Executive Vice President - Finance
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Chief Financial Officer and Treasurer
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•
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either a company or a
groupement d’intérêt économique
(a
“GIE”)
in which the Company holds, directly or indirectly, 10% at least of the share capital or of the voting stocks,
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either a company or a GIE which holds, directly or indirectly, at least 10% of the share capital of the voting stock of the Company,
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or a company or a GIE in which a company holds, directly or indirectly, 50% at least of the share capital or of the voting stock that itself holds, directly or indirectly, 50% at least of the share capital or of the voting stock of the Company.
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In the event of the Grantee’s death or Disability, 100% of the unvested Units subject to the Award shall vest immediately prior to the Grantee’s death or Disability and the Vesting Period will expire.
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In the event of a Corporate Transaction or Change in Control, the Units will be subject to the terms and conditions of Section 11 of the Plan.
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STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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(in thousands, except ratio of earnings to fixed charges and preferred stock dividends)
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Six months ended March 31,
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Year ended September 30,
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2014
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2013
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2013
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2012
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2011
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2010
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2009
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Earnings:
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Pre-tax income excluding noncontrolling interests
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$
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344,388
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$
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270,164
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$
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564,187
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$
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471,525
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$
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461,247
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$
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361,908
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$
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248,774
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Fixed charges
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66,384
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70,096
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140,708
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115,992
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84,557
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81,250
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75,369
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Less: preferred stock dividends
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—
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—
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—
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—
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—
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—
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—
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Earnings
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$
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410,772
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$
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340,260
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$
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704,895
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$
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587,517
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$
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545,804
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$
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443,158
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$
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324,143
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Fixed charges:
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Interest expense
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$
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50,746
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$
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54,618
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$
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109,159
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$
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90,389
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$
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65,351
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$
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62,564
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$
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56,921
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Estimated interest portion within rental expense
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15,032
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14,872
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30,337
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24,623
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18,727
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18,399
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18,416
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Amortization of debt issuance cost
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606
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606
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1,212
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980
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479
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287
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32
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Preferred stock dividends
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—
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—
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—
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—
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—
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—
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—
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Total fixed charges
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$
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66,384
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$
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70,096
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$
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140,708
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$
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115,992
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$
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84,557
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$
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81,250
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$
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75,369
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Ratio of earnings to fixed charges and preferred stock dividends
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6.19
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4.85
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5.01
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5.07
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6.45
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5.45
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4.30
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Date:
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May 9, 2014
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/s/ PAUL C. REILLY
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Paul C. Reilly
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Chief Executive Officer
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Date:
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May 9, 2014
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/s/ JEFFREY P. JULIEN
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Jeffrey P. Julien
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Executive Vice President - Finance, Chief Financial Officer and Treasurer
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ PAUL C. REILLY
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Paul C. Reilly
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Chief Executive Officer
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May 9, 2014
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/s/ JEFFREY P. JULIEN
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Jeffrey P. Julien
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Executive Vice President - Finance, Chief Financial Officer and Treasurer
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May 9, 2014
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