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
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging growth company
o
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INDEX
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PAGE
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PART I
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Item 1.
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Condensed Consolidated Statements of Financial Condition as of December 31, 2017 and September 30, 2017 (Unaudited)
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Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended December 31, 2017 and December 31, 2016 (Unaudited)
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Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended December 31, 2017 and December 31, 2016 (Unaudited)
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Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2017 and December 30, 2016 (Unaudited)
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Note 1 - Organization and basis of presentation
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Note 2 - Update of significant accounting policies
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Note 3 - Acquisitions
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Note 4 - Fair value
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Note 5 - Available-for-sale securities
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Note 6 - Derivative financial instruments
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Note 7 - Collateralized agreements and financings
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Note 8 - Bank loans, net
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Note 9 - Variable interest entities
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Note 10 - Goodwill and identifiable intangible assets, net
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Note 11 - Bank deposits
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Note 12 - Other borrowings
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Note 13 - Income taxes
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Note 14 - Commitments, contingencies and guarantees
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Note 15 - Accumulated other comprehensive income/(loss)
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Note 16 - Interest income and interest expense
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Note 17 - Share-based and other compensation
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Note 18 - Regulatory capital requirements
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Note 19 - Earnings per share
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Note 20 - Segment information
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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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Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
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Item 3.
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Item 4.
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Mine Safety Disclosure
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Item 5.
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Item 6.
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$ in thousands, except per share amounts
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December 31, 2017
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September 30, 2017
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Assets:
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Cash and cash equivalents
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$
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3,897,529
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$
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3,669,672
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Assets segregated pursuant to regulations and other segregated assets
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3,569,414
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3,476,085
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Securities purchased under agreements to resell
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307,742
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404,462
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Securities borrowed
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184,971
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138,319
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Financial instruments, at fair value:
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Trading instruments (includes
$302,713
and $357,099 pledged as collateral)
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597,579
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564,263
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Available-for-sale securities
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2,393,321
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2,188,282
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Derivative assets
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292,140
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318,775
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Private equity investments
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189,033
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198,779
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Other investments (includes
$38,591
and $6,640 pledged as collateral)
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265,170
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220,980
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Brokerage client receivables, net
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2,666,268
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2,766,771
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Receivables from brokers, dealers and clearing organizations
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219,036
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268,021
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Other receivables
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642,542
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652,769
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Bank loans, net
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17,697,298
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17,006,795
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Loans to financial advisors, net
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890,072
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873,272
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Investments in real estate partnerships held by consolidated variable interest entities
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110,662
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111,743
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Property and equipment, net
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454,115
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437,374
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Deferred income taxes, net
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199,507
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313,486
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Goodwill and identifiable intangible assets, net
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651,339
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493,183
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Other assets
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857,161
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780,425
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Total assets
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$
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36,084,899
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$
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34,883,456
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Liabilities and equity:
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Bank deposits
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$
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18,725,545
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$
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17,732,362
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Securities sold under agreements to repurchase
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229,036
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220,942
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Securities loaned
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290,307
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383,953
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Financial instruments sold but not yet purchased, at fair value:
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Trading instruments
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213,024
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221,449
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Derivative liabilities
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356,505
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356,964
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Brokerage client payables
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5,820,347
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5,411,829
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Payables to brokers, dealers and clearing organizations
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189,144
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172,714
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Accrued compensation, commissions and benefits
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793,687
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1,059,996
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Other payables
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582,548
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567,045
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Other borrowings
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1,532,826
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1,514,012
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Senior notes payable
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1,548,975
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1,548,839
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Total liabilities
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30,281,944
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29,190,105
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Commitments and contingencies (see Note 14)
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Equity
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Preferred stock; $.10 par value; 10,000,000 shares authorized; -0- shares issued and outstanding
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—
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—
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Common stock; $.01 par value; 350,000,000 shares authorized;
155,497,352
and 154,228,235 shares issued as of December 31, 2017 and September 30,2017, respectively, and
145,153,686
and 144,096,521 shares outstanding as of December 31, 2017 and September 30, 2017, respectively
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1,555
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1,542
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Additional paid-in capital
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1,705,308
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1,645,397
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Retained earnings
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4,420,368
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4,340,054
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Treasury stock, at cost;
10,311,191
and 10,084,038 common shares as of December 31, 2017 and September 30, 2017, respectively
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(410,029
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)
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(390,081
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)
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Accumulated other comprehensive loss
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(20,454
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)
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(15,199
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)
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Total equity attributable to Raymond James Financial, Inc.
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5,696,748
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5,581,713
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Noncontrolling interests
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106,207
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111,638
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Total equity
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5,802,955
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5,693,351
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Total liabilities and equity
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$
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36,084,899
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$
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34,883,456
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Three months ended December 31,
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$ in thousands, except per share amounts
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2017
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2016
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Revenues:
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Securities commissions and fees
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$
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1,103,566
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$
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984,385
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Investment banking
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64,902
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61,425
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Investment advisory and related administrative fees
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142,023
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108,243
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Interest
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231,729
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182,782
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Account and service fees
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184,301
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148,791
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Net trading profit
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19,870
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20,555
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Other
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19,201
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22,587
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Total revenues
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1,765,592
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1,528,768
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Interest expense
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(39,431
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)
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(35,966
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)
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Net revenues
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1,726,161
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1,492,802
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Non-interest expenses:
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Compensation, commissions and benefits
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1,152,767
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1,006,467
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Communications and information processing
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83,731
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72,161
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Occupancy and equipment costs
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49,814
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46,052
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Business development
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33,793
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35,362
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Investment sub-advisory fees
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22,321
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19,295
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Bank loan loss provision/(benefit)
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1,016
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(1,040
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)
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Acquisition-related expenses
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3,927
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12,666
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Other
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67,108
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94,324
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Total non-interest expenses
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1,414,477
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1,285,287
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Income including noncontrolling interests and before provision for income taxes
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311,684
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207,515
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Provision for income taxes
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192,401
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|
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59,812
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|
||
Net income including noncontrolling interests
|
|
119,283
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|
|
147,703
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|
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Net income attributable to noncontrolling interests
|
|
441
|
|
|
1,136
|
|
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Net income attributable to Raymond James Financial, Inc.
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$
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118,842
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$
|
146,567
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|
||||
Earnings per common share – basic
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|
$
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0.82
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|
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$
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1.03
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Earnings per common share – diluted
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$
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0.80
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$
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1.00
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Weighted-average common shares outstanding – basic
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|
144,469
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|
|
142,110
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||
Weighted-average common and common equivalent shares outstanding – diluted
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148,261
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|
|
145,675
|
|
||
|
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|
||||
Net income attributable to Raymond James Financial, Inc.
|
|
$
|
118,842
|
|
|
$
|
146,567
|
|
Other comprehensive income/(loss), net of tax:
(1)
|
|
|
|
|
|
|
||
Unrealized loss on available-for-sale securities and non-credit portion of other-than-temporary impairment losses
|
|
(11,953
|
)
|
|
(4,146
|
)
|
||
Unrealized gain/(loss) on currency translations, net of the impact of net investment hedges
|
|
(187
|
)
|
|
1,001
|
|
||
Unrealized gain on cash flow hedges
|
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6,885
|
|
|
25,738
|
|
||
Total comprehensive income
|
|
$
|
113,587
|
|
|
$
|
169,160
|
|
(1)
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All components of other comprehensive income/(loss), net of tax, are attributable to Raymond James Financial, Inc.
|
|
|
Three months ended December 31,
|
||||||
$ in thousands, except per share amounts
|
|
2017
|
|
2016
|
||||
Common stock, par value $.01 per share:
|
|
|
|
|
||||
Balance, beginning of year
|
|
$
|
1,542
|
|
|
$
|
1,513
|
|
Share issuances
|
|
13
|
|
|
17
|
|
||
Balance, end of period
|
|
1,555
|
|
|
1,530
|
|
||
|
|
|
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||||
Additional paid-in capital:
|
|
|
|
|
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|
||
Balance, beginning of year
|
|
1,645,397
|
|
|
1,498,921
|
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Employee stock purchases
|
|
5,522
|
|
|
4,743
|
|
||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
|
20,953
|
|
|
18,969
|
|
||
Restricted stock, stock option and restricted stock unit expense
|
|
33,373
|
|
|
30,971
|
|
||
Other
|
|
63
|
|
|
(322
|
)
|
||
Balance, end of period
|
|
1,705,308
|
|
|
1,553,282
|
|
||
|
|
|
|
|
||||
Retained earnings:
|
|
|
|
|
|
|
||
Balance, beginning of year
|
|
4,340,054
|
|
|
3,834,781
|
|
||
Net income attributable to Raymond James Financial, Inc.
|
|
118,842
|
|
|
146,567
|
|
||
Cash dividends declared
|
|
(38,417
|
)
|
|
(34,274
|
)
|
||
Other
|
|
(111
|
)
|
|
—
|
|
||
Balance, end of period
|
|
4,420,368
|
|
|
3,947,074
|
|
||
|
|
|
|
|
||||
Treasury stock:
|
|
|
|
|
|
|
||
Balance, beginning of year
|
|
(390,081
|
)
|
|
(362,937
|
)
|
||
Purchases/surrenders
|
|
(7,183
|
)
|
|
(8,474
|
)
|
||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
|
(12,765
|
)
|
|
(16,458
|
)
|
||
Balance, end of period
|
|
(410,029
|
)
|
|
(387,869
|
)
|
||
|
|
|
|
|
||||
Accumulated other comprehensive loss:
(1)
|
|
|
|
|
|
|
||
Balance, beginning of year
|
|
(15,199
|
)
|
|
(55,733
|
)
|
||
Net change in unrealized loss on available-for-sale securities and non-credit portion of other-than-temporary impairment losses, net of tax
|
|
(11,953
|
)
|
|
(4,146
|
)
|
||
Net change in currency translations and net investment hedges, net of tax
|
|
(187
|
)
|
|
1,001
|
|
||
Net change in cash flow hedges, net of tax
|
|
6,885
|
|
|
25,738
|
|
||
Balance, end of period
|
|
(20,454
|
)
|
|
(33,140
|
)
|
||
Total equity attributable to Raymond James Financial, Inc.
|
|
$
|
5,696,748
|
|
|
$
|
5,080,877
|
|
|
|
|
|
|
||||
Noncontrolling interests:
|
|
|
|
|
|
|
||
Balance, beginning of year
|
|
$
|
111,638
|
|
|
$
|
146,431
|
|
Net income attributable to noncontrolling interests
|
|
441
|
|
|
1,136
|
|
||
Capital contributions
|
|
—
|
|
|
4,998
|
|
||
Distributions
|
|
(5,977
|
)
|
|
(26,557
|
)
|
||
Other
|
|
105
|
|
|
(2,284
|
)
|
||
Balance, end of period
|
|
106,207
|
|
|
123,724
|
|
||
Total equity
|
|
$
|
5,802,955
|
|
|
$
|
5,204,601
|
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(continued from previous page)
|
||||||||
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Cash flows from financing activities:
|
|
|
|
|
||||
Proceeds from borrowings on the RJF Credit Facility
|
|
300,000
|
|
|
—
|
|
||
Proceeds from/(repayments of) short-term borrowings, net
|
|
(280,000
|
)
|
|
208,400
|
|
||
Proceeds from Federal Home Loan Bank advances
|
|
—
|
|
|
100,000
|
|
||
Repayments of Federal Home Loan Bank advances and other borrowed funds
|
|
(1,186
|
)
|
|
(1,138
|
)
|
||
Exercise of stock options and employee stock purchases
|
|
25,954
|
|
|
24,143
|
|
||
Increase in bank deposits
|
|
993,183
|
|
|
927,243
|
|
||
Purchases of treasury stock
|
|
(20,243
|
)
|
|
(26,058
|
)
|
||
Dividends on common stock
|
|
(32,499
|
)
|
|
(31,255
|
)
|
||
Distributions to noncontrolling interests, net
|
|
(5,977
|
)
|
|
(26,557
|
)
|
||
Net cash provided by financing activities
|
|
979,232
|
|
|
1,174,778
|
|
||
|
|
|
|
|
||||
Currency adjustment:
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash
|
|
(3,118
|
)
|
|
(9,514
|
)
|
||
Net increase in cash and cash equivalents
|
|
227,857
|
|
|
877,823
|
|
||
Cash and cash equivalents at beginning of year
|
|
3,669,672
|
|
|
1,650,452
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
3,897,529
|
|
|
$
|
2,528,275
|
|
|
|
|
|
|
||||
|
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
||
Cash paid for interest
|
|
$
|
28,026
|
|
|
$
|
32,442
|
|
Cash paid for income taxes
|
|
$
|
8,515
|
|
|
$
|
13,710
|
|
•
|
Requires equity investments (other than those accounted for under the equity method or those that result from the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any.
|
•
|
Simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment.
|
•
|
Eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet.
|
•
|
Requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes.
|
•
|
Requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option.
|
•
|
Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements.
|
•
|
Clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.
|
•
|
Expands the ability to hedge nonfinancial and financial risk components.
|
•
|
Reduces complexity in fair value hedges of interest rate risk.
|
•
|
Eliminates the requirement to separately measure and report hedge ineffectiveness.
|
•
|
Generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item.
|
•
|
Modifies accounting for components excluded from the assessment of hedge effectiveness.
|
•
|
Eases certain documentation and hedge effectiveness assessment requirements.
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Legal and regulatory
|
|
$
|
2,281
|
|
|
$
|
553
|
|
Severance
|
|
990
|
|
|
4,803
|
|
||
Information systems integration costs
|
|
162
|
|
|
1,205
|
|
||
Acquisition and integration-related incentive compensation costs
|
|
—
|
|
|
5,474
|
|
||
Early termination costs of assumed contracts
|
|
—
|
|
|
1,324
|
|
||
Post-closing purchase price contingency
|
|
—
|
|
|
(2,251
|
)
|
||
All other
|
|
494
|
|
|
1,558
|
|
||
Total acquisition-related expenses
|
|
$
|
3,927
|
|
|
$
|
12,666
|
|
$ in thousands
|
|
Quoted prices
in active markets for identical instruments (Level 1) |
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Netting
adjustments
|
|
Balance as of
December 31, 2017 |
||||||||||
Assets at fair value on a recurring basis
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
122
|
|
|
$
|
197,580
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
197,702
|
|
Corporate obligations
|
|
11,069
|
|
|
33,723
|
|
|
—
|
|
|
—
|
|
|
44,792
|
|
|||||
Government and agency obligations
|
|
6,376
|
|
|
17,929
|
|
|
—
|
|
|
—
|
|
|
24,305
|
|
|||||
Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”)
|
|
2,128
|
|
|
214,680
|
|
|
—
|
|
|
—
|
|
|
216,808
|
|
|||||
Non-agency CMOs and asset-backed securities (“ABS”)
|
|
—
|
|
|
52,244
|
|
|
5
|
|
|
—
|
|
|
52,249
|
|
|||||
Total debt securities
|
|
19,695
|
|
|
516,156
|
|
|
5
|
|
|
—
|
|
|
535,856
|
|
|||||
Equity securities
|
|
18,497
|
|
|
803
|
|
|
—
|
|
|
—
|
|
|
19,300
|
|
|||||
Brokered certificates of deposit
|
|
—
|
|
|
32,173
|
|
|
—
|
|
|
—
|
|
|
32,173
|
|
|||||
Other
|
|
27
|
|
|
7,511
|
|
|
2,712
|
|
|
—
|
|
|
10,250
|
|
|||||
Total trading instruments
|
|
38,219
|
|
|
556,643
|
|
|
2,717
|
|
|
—
|
|
|
597,579
|
|
|||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency MBS and CMOs
|
|
—
|
|
|
2,285,051
|
|
|
—
|
|
|
—
|
|
|
2,285,051
|
|
|||||
Other securities
|
|
787
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
787
|
|
|||||
Auction rate securities (“ARS”) preferred securities
|
|
—
|
|
|
—
|
|
|
107,483
|
|
|
—
|
|
|
107,483
|
|
|||||
Total available-for-sale securities
|
|
787
|
|
|
2,285,051
|
|
|
107,483
|
|
|
—
|
|
|
2,393,321
|
|
|||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Matched book
|
|
—
|
|
|
263,851
|
|
|
—
|
|
|
—
|
|
|
263,851
|
|
|||||
Other
|
|
—
|
|
|
58,660
|
|
|
—
|
|
|
(30,375
|
)
|
|
28,285
|
|
|||||
Foreign exchange contracts
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Total derivative assets
|
|
—
|
|
|
322,515
|
|
|
—
|
|
|
(30,375
|
)
|
|
292,140
|
|
|||||
Private equity investments
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Not measured at NAV
|
|
—
|
|
|
—
|
|
|
88,810
|
|
|
—
|
|
|
88,810
|
|
|||||
Measured at NAV
|
|
|
|
|
|
|
|
|
|
100,223
|
|
|||||||||
Total private equity investments
|
|
—
|
|
|
—
|
|
|
88,810
|
|
|
—
|
|
|
189,033
|
|
|||||
Other investments
(2)
|
|
263,978
|
|
|
859
|
|
|
333
|
|
|
—
|
|
|
265,170
|
|
|||||
Total assets at fair value on a recurring basis
|
|
$
|
302,984
|
|
|
$
|
3,165,068
|
|
|
$
|
199,343
|
|
|
$
|
(30,375
|
)
|
|
$
|
3,737,243
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets at fair value on a nonrecurring basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank loans, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
16,347
|
|
|
$
|
23,418
|
|
|
$
|
—
|
|
|
$
|
39,765
|
|
Loans held for sale
(3)
|
|
—
|
|
|
69,057
|
|
|
—
|
|
|
—
|
|
|
69,057
|
|
|||||
Total assets at fair value on a nonrecurring basis
|
|
$
|
—
|
|
|
$
|
85,404
|
|
|
$
|
23,418
|
|
|
$
|
—
|
|
|
$
|
108,822
|
|
|
||||||||||||||||||||
(continued on next page)
|
(continued from previous page)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
$ in thousands
|
|
Quoted prices
in active
markets for
identical
instruments
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Netting
adjustments
|
|
Balance as of
December 31, 2017 |
||||||||||
Liabilities at fair value on a recurring basis
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments sold but not yet purchased
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
742
|
|
|
$
|
3,082
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,824
|
|
Corporate obligations
|
|
608
|
|
|
7,394
|
|
|
—
|
|
|
—
|
|
|
8,002
|
|
|||||
Government obligations
|
|
183,510
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
183,510
|
|
|||||
Agency MBS and CMOs
|
|
328
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
328
|
|
|||||
Non-agency MBS and CMOs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total debt securities
|
|
185,188
|
|
|
10,476
|
|
|
—
|
|
|
—
|
|
|
195,664
|
|
|||||
Equity securities
|
|
16,294
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
16,298
|
|
|||||
Other
|
|
4
|
|
|
—
|
|
|
1,058
|
|
|
—
|
|
|
1,062
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
201,486
|
|
|
10,480
|
|
|
1,058
|
|
|
—
|
|
|
213,024
|
|
|||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Matched book
|
|
—
|
|
|
263,851
|
|
|
—
|
|
|
—
|
|
|
263,851
|
|
|||||
Other
|
|
—
|
|
|
86,815
|
|
|
—
|
|
|
(42,284
|
)
|
|
44,531
|
|
|||||
Foreign exchange contracts
|
|
—
|
|
|
19,710
|
|
|
—
|
|
|
—
|
|
|
19,710
|
|
|||||
Deutsche Bank restricted stock unit (“DBRSU”) obligation (equity)
|
|
—
|
|
|
28,413
|
|
|
—
|
|
|
—
|
|
|
28,413
|
|
|||||
Total derivative liabilities
|
|
—
|
|
|
398,789
|
|
|
—
|
|
|
(42,284
|
)
|
|
356,505
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
201,486
|
|
|
$
|
409,269
|
|
|
$
|
1,058
|
|
|
$
|
(42,284
|
)
|
|
$
|
569,529
|
|
(1)
|
Of the total private equity investments, the portion we owned was
$138 million
as of
December 31, 2017
. The portion of the private equity investments we did not own was
$51 million
as of
December 31, 2017
and was included as a component of noncontrolling interests in our Condensed Consolidated Statements of Financial Condition.
|
(2)
|
Includes
$45 million
of financial instruments that are related to obligations to perform under certain deferred compensation plans and Deutsche Bank AG (“DB”) shares with a fair value of
$21 million
as of
December 31, 2017
which we hold as an economic hedge against the
DBRSU
obligation. See Notes
2
and
20
in our 2017 Form 10-K for additional information.
|
(3)
|
Loans classified as held for sale recorded at a fair value lower than cost.
|
$ in thousands
|
|
Quoted prices
in active markets for identical instruments (Level 1) |
|
Significant
other observable inputs (Level 2) |
|
Significant
unobservable inputs (Level 3) |
|
Netting
adjustments |
|
Balance as of
September 30, 2017 |
||||||||||
Assets at fair value on a recurring basis
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
83
|
|
|
$
|
221,884
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
221,967
|
|
Corporate obligations
|
|
9,361
|
|
|
81,577
|
|
|
—
|
|
|
—
|
|
|
90,938
|
|
|||||
Government and agency obligations
|
|
6,354
|
|
|
28,977
|
|
|
—
|
|
|
—
|
|
|
35,331
|
|
|||||
Agency MBS and CMOs
|
|
913
|
|
|
133,070
|
|
|
—
|
|
|
—
|
|
|
133,983
|
|
|||||
Non-agency CMOs and ABS
|
|
—
|
|
|
28,442
|
|
|
5
|
|
|
—
|
|
|
28,447
|
|
|||||
Total debt securities
|
|
16,711
|
|
|
493,950
|
|
|
5
|
|
|
—
|
|
|
510,666
|
|
|||||
Equity securities
|
|
16,090
|
|
|
389
|
|
|
—
|
|
|
—
|
|
|
16,479
|
|
|||||
Brokered certificates of deposit
|
|
—
|
|
|
31,492
|
|
|
—
|
|
|
—
|
|
|
31,492
|
|
|||||
Other
|
|
32
|
|
|
—
|
|
|
5,594
|
|
|
—
|
|
|
5,626
|
|
|||||
Total trading instruments
|
|
32,833
|
|
|
525,831
|
|
|
5,599
|
|
|
—
|
|
|
564,263
|
|
|||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency MBS and CMOs
|
|
—
|
|
|
2,081,079
|
|
|
—
|
|
|
—
|
|
|
2,081,079
|
|
|||||
Other securities
|
|
1,032
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,032
|
|
|||||
ARS preferred securities
|
|
—
|
|
|
—
|
|
|
106,171
|
|
|
—
|
|
|
106,171
|
|
|||||
Total available-for-sale securities
|
|
1,032
|
|
|
2,081,079
|
|
|
106,171
|
|
|
—
|
|
|
2,188,282
|
|
|||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Matched book
|
|
—
|
|
|
288,035
|
|
|
—
|
|
|
—
|
|
|
288,035
|
|
|||||
Other
|
|
—
|
|
|
86,436
|
|
|
—
|
|
|
(55,728
|
)
|
|
30,708
|
|
|||||
Foreign exchange contracts
|
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||
Total derivative assets
|
|
—
|
|
|
374,503
|
|
|
—
|
|
|
(55,728
|
)
|
|
318,775
|
|
|||||
Private equity investments
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Not measured at NAV
|
|
—
|
|
|
—
|
|
|
88,885
|
|
|
—
|
|
|
88,885
|
|
|||||
Measured at NAV
|
|
|
|
|
|
|
|
|
|
109,894
|
|
|||||||||
Total private equity investments
|
|
—
|
|
|
—
|
|
|
88,885
|
|
|
—
|
|
|
198,779
|
|
|||||
Other investments
(2)
|
|
220,312
|
|
|
332
|
|
|
336
|
|
|
—
|
|
|
220,980
|
|
|||||
Total assets at fair value on a recurring basis
|
|
$
|
254,177
|
|
|
$
|
2,981,745
|
|
|
$
|
200,991
|
|
|
$
|
(55,728
|
)
|
|
$
|
3,491,079
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets at fair value on a nonrecurring basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank loans, net
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
17,474
|
|
|
$
|
23,994
|
|
|
$
|
—
|
|
|
$
|
41,468
|
|
Loans held for sale
(3)
|
|
—
|
|
|
11,285
|
|
|
—
|
|
|
—
|
|
|
11,285
|
|
|||||
Total bank loans, net
|
|
—
|
|
|
28,759
|
|
|
23,994
|
|
|
—
|
|
|
52,753
|
|
|||||
Other assets: other real estate owned
|
|
—
|
|
|
880
|
|
|
—
|
|
|
—
|
|
|
880
|
|
|||||
Total assets at fair value on a nonrecurring basis
|
|
$
|
—
|
|
|
$
|
29,639
|
|
|
$
|
23,994
|
|
|
$
|
—
|
|
|
$
|
53,633
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(continued on next page)
|
(continued from previous page)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
$ in thousands
|
|
Quoted prices
in active
markets for
identical
instruments
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Netting
adjustments
|
|
Balance as of
September 30, 2017 |
||||||||||
Liabilities at fair value on a recurring basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trading instruments sold but not yet purchased
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal and provincial obligations
|
|
$
|
304
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
304
|
|
Corporate obligations
|
|
1,286
|
|
|
35,272
|
|
|
—
|
|
|
—
|
|
|
36,558
|
|
|||||
Government obligations
|
|
167,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167,622
|
|
|||||
Agency MBS and CMOs
|
|
2,477
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,477
|
|
|||||
Non-agency MBS and CMOs
|
|
—
|
|
|
5,028
|
|
|
—
|
|
|
—
|
|
|
5,028
|
|
|||||
Total debt securities
|
|
171,689
|
|
|
40,300
|
|
|
—
|
|
|
—
|
|
|
211,989
|
|
|||||
Equity securities
|
|
8,118
|
|
|
1,342
|
|
|
—
|
|
|
—
|
|
|
9,460
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
179,807
|
|
|
41,642
|
|
|
—
|
|
|
—
|
|
|
221,449
|
|
|||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Matched book
|
|
—
|
|
|
288,035
|
|
|
—
|
|
|
—
|
|
|
288,035
|
|
|||||
Other
|
|
—
|
|
|
101,893
|
|
|
—
|
|
|
(59,410
|
)
|
|
42,483
|
|
|||||
Foreign exchange contracts
|
|
—
|
|
|
646
|
|
|
—
|
|
|
—
|
|
|
646
|
|
|||||
DBRSU obligation (equity)
|
|
—
|
|
|
25,800
|
|
|
—
|
|
|
—
|
|
|
25,800
|
|
|||||
Total derivative liabilities
|
|
—
|
|
|
416,374
|
|
|
—
|
|
|
(59,410
|
)
|
|
356,964
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
179,807
|
|
|
$
|
458,016
|
|
|
$
|
—
|
|
|
$
|
(59,410
|
)
|
|
$
|
578,413
|
|
(1)
|
Of the total private equity investments, the portion we owned was
$145 million
as of
September 30, 2017
. The portion of the private equity investments we did not own was
$54 million
as of
September 30, 2017
, and was included as a component of noncontrolling interests in our Condensed Consolidated Statements of Financial Condition.
|
(2)
|
Includes
$44 million
of financial instruments that are related to obligations to perform under certain deferred compensation plans and
DB
shares with a fair value of
$19 million
as of September 30, 2017, which we hold as an economic hedge against the
DBRSU
obligation. See Notes 2 and 20 in our 2017 Form 10-K for additional information.
|
(3)
|
Loans classified as held for sale recorded at a fair value lower than cost.
|
Three months ended December 31, 2017
Level 3 instruments at fair value
|
||||||||||||||||||||||||
|
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||
|
|
Trading instruments
|
|
Available-for-sale securities
|
|
Private equity and other investments
|
|
Trading instruments
|
||||||||||||||||
$ in thousands
|
|
Non-agency
CMOs & ABS
|
|
Other
|
|
ARS - preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other
|
||||||||||||
Fair value beginning of period
|
|
$
|
5
|
|
|
$
|
5,594
|
|
|
$
|
106,171
|
|
|
$
|
88,885
|
|
|
$
|
336
|
|
|
$
|
—
|
|
Total gains/(losses) for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Included in earnings
|
|
—
|
|
|
(1,207
|
)
|
|
—
|
|
|
2
|
|
|
(3
|
)
|
|
(1,058
|
)
|
||||||
Included in other comprehensive income
|
|
—
|
|
|
—
|
|
|
1,312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases and contributions
|
|
—
|
|
|
20,279
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Sales
|
|
—
|
|
|
(21,954
|
)
|
|
—
|
|
|
(77
|
)
|
|
—
|
|
|
—
|
|
||||||
Distributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Fair value end of period
|
|
$
|
5
|
|
|
$
|
2,712
|
|
|
$
|
107,483
|
|
|
$
|
88,810
|
|
|
$
|
333
|
|
|
$
|
(1,058
|
)
|
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period
|
|
$
|
—
|
|
|
$
|
(243
|
)
|
|
$
|
1,312
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
(1,058
|
)
|
Three months ended December 31, 2016 Level 3 instruments at fair value
|
||||||||||||||||||||||||||||
|
|
Financial assets
|
|
Financial
liabilities
|
||||||||||||||||||||||||
|
|
Trading instruments
|
|
Available-for-sale securities
|
|
Private equity and other investments
|
|
Trading instruments
|
||||||||||||||||||||
$ in thousands
|
|
Non-agency
CMOs &
ABS
|
|
Other
|
|
ARS –
municipals obligations
|
|
ARS -
preferred
securities
|
|
Private
equity
investments
|
|
Other
investments
|
|
Other
|
||||||||||||||
Fair value beginning of period
|
|
$
|
7
|
|
|
$
|
6,020
|
|
|
$
|
25,147
|
|
|
$
|
100,018
|
|
|
$
|
83,165
|
|
|
$
|
441
|
|
|
$
|
—
|
|
Total gains/(losses) for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Included in earnings
|
|
—
|
|
|
(2,589
|
)
|
|
—
|
|
|
1
|
|
|
301
|
|
|
(8
|
)
|
|
(1,792
|
)
|
|||||||
Included in other comprehensive income
|
|
—
|
|
|
—
|
|
|
217
|
|
|
3,857
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Purchases and contributions
|
|
—
|
|
|
18,683
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Sales
|
|
—
|
|
|
(11,062
|
)
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|||||||
Distributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Transfers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(195
|
)
|
|
—
|
|
|||||||
Fair value end of period
|
|
$
|
7
|
|
|
$
|
11,052
|
|
|
$
|
25,364
|
|
|
$
|
103,853
|
|
|
$
|
83,466
|
|
|
$
|
223
|
|
|
$
|
(1,792
|
)
|
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period
|
|
$
|
—
|
|
|
$
|
(124
|
)
|
|
$
|
217
|
|
|
$
|
3,856
|
|
|
$
|
301
|
|
|
$
|
—
|
|
|
$
|
(1,792
|
)
|
$ in thousands
|
|
Net trading profit
|
|
Other revenues
|
|
Other comprehensive income
|
||||||
For the three months ended December 31, 2017
|
|
|
|
|
|
|
||||||
Total gains/(losses) included in earnings
|
|
$
|
(2,265
|
)
|
|
$
|
(1
|
)
|
|
$
|
1,312
|
|
Unrealized gains/(losses) for assets held at the end of the reporting period
|
|
$
|
(1,301
|
)
|
|
$
|
(3
|
)
|
|
$
|
1,312
|
|
|
|
|
|
|
|
|
||||||
For the three months ended December 31, 2016
|
|
|
|
|
|
|
||||||
Total gains/(losses) included in earnings
|
|
$
|
(4,381
|
)
|
|
$
|
294
|
|
|
$
|
4,074
|
|
Unrealized gains/(losses) for assets held at the end of the reporting period
|
|
$
|
(1,916
|
)
|
|
$
|
301
|
|
|
$
|
4,073
|
|
Level 3 financial instrument
$ in thousands
|
|
Fair value at December 31, 2017
|
|
Valuation technique(s)
|
|
Unobservable input
|
|
Range
(weighted-average)
|
||
Recurring measurements
|
|
|
|
|
|
|
|
|
||
ARS preferred securities
|
|
$
|
107,483
|
|
|
Discounted cash flow
|
|
Average discount rate
|
|
5.76% - 7.03% (6.32%)
|
|
|
|
|
|
|
|
Average interest rates applicable to future interest income on the securities
(1)
|
|
2.97% - 3.96% (3.12%)
|
|
|
|
|
|
|
|
|
Prepayment year
(2)
|
|
2018 - 2021 (2021)
|
|
Private equity investments (not measured at NAV)
|
|
$
|
68,454
|
|
|
Income or market approach
|
|
|
|
|
|
|
|
|
Scenario 1 - income approach - discounted cash flow
|
|
Discount rate
|
|
13% - 25% (22.4%)
|
||
|
|
|
|
|
|
Terminal growth rate of cash flows
|
|
3% - 3% (3%)
|
||
|
|
|
|
|
|
Terminal year
|
|
2020 - 2042 (2021)
|
||
|
|
|
|
Scenario 2 - market approach - market multiple method
|
|
EBITDA Multiple
|
|
5.25 - 7.0 (5.8)
|
||
|
|
|
|
|
|
Weighting assigned to outcome of scenario 1/scenario 2
|
|
87%/13%
|
||
|
|
$
|
20,356
|
|
|
Transaction price or other investment-specific events
(3)
|
|
Not meaningful
(3)
|
|
Not meaningful
(3)
|
Nonrecurring measurements
|
|
|
|
|
|
|
||||
Bank loans: impaired loans - residential
|
|
$
|
20,421
|
|
|
Discounted cash flow
|
|
Prepayment rate
|
|
7 yrs - 12 yrs (10.3 yrs)
|
Bank loans: impaired loans - corporate
|
|
$
|
2,997
|
|
|
Appraisal or discounted cash flow value
(4)
|
|
Not meaningful
(4)
|
|
Not meaningful
(4)
|
Level 3 financial instrument
$ in thousands |
|
Fair value at
September 30,
2017
|
|
Valuation technique(s)
|
|
Unobservable input
|
|
Range (weighted-average)
|
||
Recurring measurements
|
|
|
|
|
|
|
||||
ARS preferred securities
|
|
$
|
106,171
|
|
|
Discounted cash flow
|
|
Average discount rate
|
|
5.46% - 6.81% (6.03%)
|
|
|
|
|
|
|
|
Average interest rates applicable to future interest income on the securities
(1)
|
|
2.58% - 3.44% (2.72%)
|
|
|
|
|
|
|
|
|
Prepayment year
(2)
|
|
2017 - 2021 (2021)
|
|
Private equity investments (not measured at NAV)
|
|
$
|
68,454
|
|
|
Income or market approach:
|
|
|
|
|
|
|
|
|
Scenario 1 - income approach - discounted cash flow
|
|
Discount rate
|
|
13% - 25% (22.4%)
|
||
|
|
|
|
|
|
Terminal growth rate of cash flows
|
|
3% - 3% (3%)
|
||
|
|
|
|
|
|
Terminal year
|
|
2020 - 2042 (2021)
|
||
|
|
|
|
Scenario 2 - market approach - market multiple method
|
|
EBITDA Multiple
|
|
5.25 - 7.0 (5.8)
|
||
|
|
|
|
|
|
Weighting assigned to outcome of scenario 1/scenario 2
|
|
87%/13%
|
||
|
|
$
|
20,431
|
|
|
Transaction price or other investment-specific events
(3)
|
|
Not meaningful
(3)
|
|
Not meaningful
(3)
|
Nonrecurring measurements
|
|
|
|
|
|
|
|
|
|
|
Bank loans: impaired loans - residential
|
|
$
|
20,736
|
|
|
Discounted cash flow
|
|
Prepayment rate
|
|
7 yrs. - 12 yrs. (10.4 yrs.)
|
Bank loans: impaired loans - corporate
|
|
$
|
3,258
|
|
|
Appraisal or discounted cash flow value
(4)
|
|
Not meaningful
(4)
|
|
Not meaningful
(4)
|
(1)
|
Future interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment.
|
(2)
|
Assumed calendar year of at least a partial redemption of the outstanding security by the issuer.
|
(3)
|
Certain private equity investments are valued initially at the transaction price until either our periodic 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.
|
(4)
|
The valuation techniques used for the impaired corporate loan portfolio are appraisals less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent.
|
|
|
|
|
Unfunded commitment
|
||||||||||||
$ in thousands
|
|
Recorded value
|
|
RJF
|
|
Noncontrolling interests
|
|
Total
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Private equity investments measured at NAV
|
|
$
|
100,223
|
|
|
$
|
20,739
|
|
|
$
|
2,256
|
|
|
$
|
22,995
|
|
Private equity investments not measured at NAV
|
|
88,810
|
|
|
|
|
|
|
|
|||||||
Total private equity investments
|
|
$
|
189,033
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Private equity investments measured at NAV
|
|
$
|
109,894
|
|
|
$
|
20,973
|
|
|
$
|
2,273
|
|
|
$
|
23,246
|
|
Private equity investments not measured at NAV
|
|
88,885
|
|
|
|
|
|
|
|
|||||||
Total private equity investments
|
|
$
|
198,779
|
|
|
|
|
|
|
|
$ in thousands
|
|
Quoted prices
in active
markets for
identical
instruments
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Total estimated fair value
|
|
Carrying amount
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
|
|
$
|
—
|
|
|
$
|
104,044
|
|
|
$
|
17,353,626
|
|
|
$
|
17,457,670
|
|
|
$
|
17,588,476
|
|
Loans to financial advisors, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
704,853
|
|
|
$
|
704,853
|
|
|
$
|
879,929
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits
|
|
$
|
—
|
|
|
$
|
18,392,535
|
|
|
$
|
329,977
|
|
|
$
|
18,722,512
|
|
|
$
|
18,725,545
|
|
Other borrowings
|
|
$
|
—
|
|
|
$
|
28,030
|
|
|
$
|
—
|
|
|
$
|
28,030
|
|
|
$
|
27,627
|
|
Senior notes payable
|
|
$
|
—
|
|
|
$
|
1,693,153
|
|
|
$
|
—
|
|
|
$
|
1,693,153
|
|
|
$
|
1,548,975
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
|
|
$
|
—
|
|
|
$
|
23,001
|
|
|
$
|
16,836,745
|
|
|
$
|
16,859,746
|
|
|
$
|
16,954,042
|
|
Loans to financial advisors, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
698,862
|
|
|
$
|
698,862
|
|
|
$
|
863,647
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits
|
|
$
|
—
|
|
|
$
|
17,417,678
|
|
|
$
|
313,359
|
|
|
$
|
17,731,037
|
|
|
$
|
17,732,362
|
|
Other borrowings
|
|
$
|
—
|
|
|
$
|
29,278
|
|
|
$
|
—
|
|
|
$
|
29,278
|
|
|
$
|
28,813
|
|
Senior notes payable
|
|
$
|
—
|
|
|
$
|
1,647,696
|
|
|
$
|
—
|
|
|
$
|
1,647,696
|
|
|
$
|
1,548,839
|
|
$ in thousands
|
|
Cost basis
|
|
Gross
unrealized gains
|
|
Gross
unrealized losses
|
|
Fair value
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Agency MBS and CMOs
|
|
$
|
2,309,741
|
|
|
$
|
180
|
|
|
$
|
(24,870
|
)
|
|
$
|
2,285,051
|
|
Other securities
|
|
1,575
|
|
|
—
|
|
|
(788
|
)
|
|
787
|
|
||||
Total RJ Bank available-for-sale securities
|
|
2,311,316
|
|
|
180
|
|
|
(25,658
|
)
|
|
2,285,838
|
|
||||
ARS preferred securities
|
|
101,674
|
|
|
5,809
|
|
|
—
|
|
|
107,483
|
|
||||
Total available-for-sale securities
|
|
$
|
2,412,990
|
|
|
$
|
5,989
|
|
|
$
|
(25,658
|
)
|
|
$
|
2,393,321
|
|
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agency MBS and CMOs
|
|
$
|
2,089,153
|
|
|
$
|
1,925
|
|
|
$
|
(9,999
|
)
|
|
$
|
2,081,079
|
|
Other securities
|
|
1,575
|
|
|
—
|
|
|
(543
|
)
|
|
1,032
|
|
||||
Total RJ Bank available-for-sale securities
|
|
2,090,728
|
|
|
1,925
|
|
|
(10,542
|
)
|
|
2,082,111
|
|
||||
ARS preferred securities
|
|
101,674
|
|
|
4,497
|
|
|
—
|
|
|
106,171
|
|
||||
Total available-for-sale securities
|
|
$
|
2,192,402
|
|
|
$
|
6,422
|
|
|
$
|
(10,542
|
)
|
|
$
|
2,188,282
|
|
|
|
December 31, 2017
|
||||||||||||||||||
$ in thousands
|
|
Within one year
|
|
After one but
within five years
|
|
After five but
within ten years
|
|
After ten years
|
|
Total
|
||||||||||
Agency MBS and CMOs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
|
$
|
—
|
|
|
$
|
143,299
|
|
|
$
|
745,234
|
|
|
$
|
1,421,208
|
|
|
$
|
2,309,741
|
|
Carrying value
|
|
—
|
|
|
142,159
|
|
|
737,410
|
|
|
1,405,482
|
|
|
2,285,051
|
|
|||||
Weighted-average yield
|
|
—
|
|
|
2.09
|
%
|
|
1.94
|
%
|
|
2.01
|
%
|
|
1.99
|
%
|
|||||
Other securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,575
|
|
|
$
|
1,575
|
|
Carrying value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
787
|
|
|
787
|
|
|||||
Weighted-average yield
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Sub-total agency MBS and CMOs and other securities:
|
|
|
|
|
|
|
||||||||||||||
Amortized cost
|
|
$
|
—
|
|
|
$
|
143,299
|
|
|
$
|
745,234
|
|
|
$
|
1,422,783
|
|
|
$
|
2,311,316
|
|
Carrying value
|
|
—
|
|
|
142,159
|
|
|
737,410
|
|
|
1,406,269
|
|
|
2,285,838
|
|
|||||
Weighted-average yield
|
|
—
|
|
|
2.09
|
%
|
|
1.94
|
%
|
|
2.01
|
%
|
|
1.99
|
%
|
|||||
ARS Preferred securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
101,674
|
|
|
$
|
101,674
|
|
Carrying value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,483
|
|
|
107,483
|
|
|||||
Weighted-average yield
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.52
|
%
|
|
2.52
|
%
|
|||||
Total available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
|
$
|
—
|
|
|
$
|
143,299
|
|
|
$
|
745,234
|
|
|
$
|
1,524,457
|
|
|
$
|
2,412,990
|
|
Carrying value
|
|
—
|
|
|
142,159
|
|
|
737,410
|
|
|
1,513,752
|
|
|
2,393,321
|
|
|||||
Weighted-average yield
|
|
—
|
|
|
2.09
|
%
|
|
1.94
|
%
|
|
2.05
|
%
|
|
2.01
|
%
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
$ in thousands
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency MBS and CMOs
|
|
$
|
1,691,798
|
|
|
$
|
(14,157
|
)
|
|
$
|
535,183
|
|
|
$
|
(10,713
|
)
|
|
$
|
2,226,981
|
|
|
$
|
(24,870
|
)
|
Other securities
|
|
—
|
|
|
—
|
|
|
787
|
|
|
(788
|
)
|
|
787
|
|
|
(788
|
)
|
||||||
Total
|
|
$
|
1,691,798
|
|
|
$
|
(14,157
|
)
|
|
$
|
535,970
|
|
|
$
|
(11,501
|
)
|
|
$
|
2,227,768
|
|
|
$
|
(25,658
|
)
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
$ in thousands
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
|
Estimated
fair value
|
|
Unrealized
losses
|
||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency MBS and CMOs
|
|
$
|
1,119,715
|
|
|
$
|
(5,621
|
)
|
|
$
|
295,528
|
|
|
$
|
(4,378
|
)
|
|
$
|
1,415,243
|
|
|
$
|
(9,999
|
)
|
Other securities
|
|
—
|
|
|
—
|
|
|
1,032
|
|
|
(543
|
)
|
|
1,032
|
|
|
(543
|
)
|
||||||
Total
|
|
$
|
1,119,715
|
|
|
$
|
(5,621
|
)
|
|
$
|
296,560
|
|
|
$
|
(4,921
|
)
|
|
$
|
1,416,275
|
|
|
$
|
(10,542
|
)
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Amount related to credit losses on securities we held at the beginning of the period
|
|
$
|
—
|
|
|
$
|
8,107
|
|
Decreases to the amount related to credit losses for securities sold during the period
|
|
—
|
|
|
(2,353
|
)
|
||
Amount related to credit losses on securities we held at the end of the period
|
|
$
|
—
|
|
|
$
|
5,754
|
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||||||||||||
$ in thousands
|
|
Derivative assets
|
|
Derivative liabilities
|
|
Notional amount
|
|
Derivative assets
|
|
Derivative liabilities
|
|
Notional amount
|
||||||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Matched book
|
|
$
|
263,851
|
|
|
$
|
263,851
|
|
|
$
|
2,687,828
|
|
|
$
|
288,035
|
|
|
$
|
288,035
|
|
|
$
|
2,766,488
|
|
Other
|
|
58,660
|
|
|
85,579
|
|
|
5,093,255
|
|
|
86,436
|
|
|
100,503
|
|
|
4,931,809
|
|
||||||
Foreign exchange contracts
|
|
4
|
|
|
7,032
|
|
|
529,000
|
|
|
3
|
|
|
530
|
|
|
437,783
|
|
||||||
DBRSU obligation (equity)
(1)
|
|
—
|
|
|
28,413
|
|
|
28,413
|
|
|
—
|
|
|
25,800
|
|
|
25,800
|
|
||||||
Subtotal
|
|
322,515
|
|
|
384,875
|
|
|
8,338,496
|
|
|
374,474
|
|
|
414,868
|
|
|
8,161,880
|
|
||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
—
|
|
|
1,236
|
|
|
850,000
|
|
|
—
|
|
|
1,390
|
|
|
850,000
|
|
||||||
Foreign exchange contracts
|
|
—
|
|
|
12,678
|
|
|
893,317
|
|
|
29
|
|
|
116
|
|
|
1,048,646
|
|
||||||
Subtotal
|
|
—
|
|
|
13,914
|
|
|
1,743,317
|
|
|
29
|
|
|
1,506
|
|
|
1,898,646
|
|
||||||
Total gross fair value/notional amount
|
|
322,515
|
|
|
398,789
|
|
|
$
|
10,081,813
|
|
|
374,503
|
|
|
416,374
|
|
|
$
|
10,060,526
|
|
||||
Offset in the Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Counterparty netting
|
|
(6,471
|
)
|
|
(6,471
|
)
|
|
|
|
(6,045
|
)
|
|
(6,045
|
)
|
|
|
||||||||
Cash collateral netting
|
|
(23,904
|
)
|
|
(35,813
|
)
|
|
|
|
(49,683
|
)
|
|
(53,365
|
)
|
|
|
||||||||
Total amounts offset
|
|
(30,375
|
)
|
|
(42,284
|
)
|
|
|
|
(55,728
|
)
|
|
(59,410
|
)
|
|
|
||||||||
Net amounts presented in the Statements of Financial Condition
|
|
292,140
|
|
|
356,505
|
|
|
|
|
318,775
|
|
|
356,964
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross amounts not offset in the Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Financial instruments
(2)
|
|
(267,938
|
)
|
|
(263,851
|
)
|
|
|
|
(293,340
|
)
|
|
(288,035
|
)
|
|
|
||||||||
Total
|
|
$
|
24,202
|
|
|
$
|
92,654
|
|
|
|
|
$
|
25,435
|
|
|
$
|
68,929
|
|
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Interest rate contracts (cash flow hedges)
|
|
$
|
6,885
|
|
|
$
|
25,738
|
|
Foreign exchange contracts (net investment hedges)
|
|
5,573
|
|
|
11,326
|
|
||
Total gains recognized in AOCI, net of taxes
|
|
$
|
12,458
|
|
|
$
|
37,064
|
|
$ in thousands
|
|
Location of gain/(loss) included in the
Condensed Consolidated Statements of Income and Comprehensive Income
|
|
Gain/(loss) recognized during the period
|
||||||
|
|
Three months ended December 31,
|
||||||||
|
|
2017
|
|
2016
|
||||||
Interest rate contracts:
|
|
|
|
|
|
|
||||
Matched book
|
|
Other revenues
|
|
$
|
38
|
|
|
$
|
(26
|
)
|
Other
|
|
Net trading profit
|
|
$
|
1,562
|
|
|
$
|
2,229
|
|
Foreign exchange contracts
|
|
Other revenues
|
|
$
|
(1,366
|
)
|
|
$
|
7,914
|
|
DBRSUs
|
|
Compensation, commissions and benefits expense
|
|
$
|
(2,613
|
)
|
|
$
|
(6,725
|
)
|
DBRSUs
|
|
Acquisition-related expenses
|
|
$
|
—
|
|
|
$
|
350
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
$ in thousands
|
|
Reverse repurchase agreements
|
|
Securities borrowed
|
|
Repurchase agreements
|
|
Securities loaned
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts of recognized assets/liabilities
|
|
$
|
307,742
|
|
|
$
|
184,971
|
|
|
$
|
229,036
|
|
|
$
|
290,307
|
|
Gross amounts offset in the Condensed Consolidated Statements of Financial Condition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amounts presented in the Condensed Consolidated Statements of Financial Condition
|
|
307,742
|
|
|
184,971
|
|
|
229,036
|
|
|
290,307
|
|
||||
Gross amounts not offset in the Condensed Consolidated Statements of Financial Condition
|
|
(307,742
|
)
|
|
(178,524
|
)
|
|
(229,036
|
)
|
|
(277,154
|
)
|
||||
Net amount
|
|
$
|
—
|
|
|
$
|
6,447
|
|
|
$
|
—
|
|
|
$
|
13,153
|
|
September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts of recognized assets/liabilities
|
|
$
|
404,462
|
|
|
$
|
138,319
|
|
|
$
|
220,942
|
|
|
$
|
383,953
|
|
Gross amounts offset in the Condensed Consolidated Statements of Financial Condition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amounts presented in the Condensed Consolidated Statements of Financial Condition
|
|
404,462
|
|
|
138,319
|
|
|
220,942
|
|
|
383,953
|
|
||||
Gross amounts not offset in the Condensed Consolidated Statements of Financial Condition
|
|
(404,462
|
)
|
|
(134,304
|
)
|
|
(220,942
|
)
|
|
(373,132
|
)
|
||||
Net amount
|
|
$
|
—
|
|
|
$
|
4,015
|
|
|
$
|
—
|
|
|
$
|
10,821
|
|
$ in thousands
|
|
December 31,
2017 |
|
September 30,
2017 |
||||
Collateral we received that is available to be delivered or repledged
|
|
$
|
2,891,841
|
|
|
$
|
3,030,736
|
|
Collateral that we delivered or repledged
|
|
$
|
957,943
|
|
|
$
|
1,068,912
|
|
$ in thousands
|
|
December 31,
2017 |
|
September 30,
2017 |
||||
Financial instruments owned, at fair value, pledged to counterparties that:
|
|
|
|
|
||||
Had the right to deliver or repledge
|
|
$
|
341,304
|
|
|
$
|
363,739
|
|
Did not have the right to deliver or repledge
|
|
$
|
129,260
|
|
|
$
|
44,930
|
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||
$ in thousands
|
|
Balance
|
|
%
|
|
Balance
|
|
%
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
C&I loans
|
|
$
|
7,490,219
|
|
|
42
|
%
|
|
$
|
7,385,910
|
|
|
43
|
%
|
CRE construction loans
|
|
164,847
|
|
|
1
|
%
|
|
112,681
|
|
|
1
|
%
|
||
CRE loans
|
|
3,136,101
|
|
|
18
|
%
|
|
3,106,290
|
|
|
18
|
%
|
||
Tax-exempt loans
|
|
1,136,468
|
|
|
6
|
%
|
|
1,017,791
|
|
|
6
|
%
|
||
Residential mortgage loans
|
|
3,270,780
|
|
|
18
|
%
|
|
3,148,730
|
|
|
18
|
%
|
||
SBL
|
|
2,530,521
|
|
|
14
|
%
|
|
2,386,697
|
|
|
14
|
%
|
||
Total loans held for investment
|
|
17,728,936
|
|
|
|
|
|
17,158,099
|
|
|
|
|
||
Net unearned income and deferred expenses
|
|
(30,231
|
)
|
|
|
|
|
(31,178
|
)
|
|
|
|
||
Total loans held for investment, net
|
|
17,698,705
|
|
|
|
|
|
17,126,921
|
|
|
|
|
||
Loans held for sale, net
|
|
189,862
|
|
|
1
|
%
|
|
70,316
|
|
|
—
|
|
||
Total loans held for sale and investment
|
|
17,888,567
|
|
|
100
|
%
|
|
17,197,237
|
|
|
100
|
%
|
||
Allowance for loan losses
|
|
(191,269
|
)
|
|
|
|
|
(190,442
|
)
|
|
|
|
||
Bank loans, net
|
|
$
|
17,697,298
|
|
|
|
|
|
$
|
17,006,795
|
|
|
|
|
$ in thousands
|
|
C&I
|
|
CRE
|
|
Residential mortgage
|
|
Total
|
||||||||
Three months ended December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Purchases
|
|
$
|
147,442
|
|
|
$
|
20,087
|
|
|
$
|
45,011
|
|
|
$
|
212,540
|
|
Sales
|
|
$
|
31,143
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,143
|
|
Three months ended December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Purchases
|
|
$
|
114,649
|
|
|
$
|
38,980
|
|
|
$
|
81,662
|
|
|
$
|
235,291
|
|
Sales
|
|
$
|
81,579
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
81,579
|
|
$ in thousands
|
|
30-89
days and accruing
|
|
90 days or more and accruing
|
|
Total past due and accruing
|
|
Nonaccrual
(1)
|
|
Current and accruing
|
|
Total loans held for investment
(2)
|
||||||||||||
As of December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
113
|
|
|
$
|
—
|
|
|
$
|
113
|
|
|
$
|
4,843
|
|
|
$
|
7,485,263
|
|
|
$
|
7,490,219
|
|
CRE construction loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164,847
|
|
|
164,847
|
|
||||||
CRE loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,136,101
|
|
|
3,136,101
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,136,468
|
|
|
1,136,468
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage loans
|
|
5,886
|
|
|
—
|
|
|
5,886
|
|
|
32,364
|
|
|
3,205,513
|
|
|
3,243,763
|
|
||||||
Home equity loans/lines
|
|
75
|
|
|
—
|
|
|
75
|
|
|
126
|
|
|
26,816
|
|
|
27,017
|
|
||||||
SBL
|
|
66
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
2,530,455
|
|
|
2,530,521
|
|
||||||
Total loans held for investment, net
|
|
$
|
6,140
|
|
|
$
|
—
|
|
|
$
|
6,140
|
|
|
$
|
37,333
|
|
|
$
|
17,685,463
|
|
|
$
|
17,728,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of September 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,221
|
|
|
$
|
7,380,689
|
|
|
$
|
7,385,910
|
|
CRE construction loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112,681
|
|
|
112,681
|
|
||||||
CRE loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,106,290
|
|
|
3,106,290
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,017,791
|
|
|
1,017,791
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First mortgage loans
|
|
1,853
|
|
|
—
|
|
|
1,853
|
|
|
33,718
|
|
|
3,086,701
|
|
|
3,122,272
|
|
||||||
Home equity loans/lines
|
|
248
|
|
|
—
|
|
|
248
|
|
|
31
|
|
|
26,179
|
|
|
26,458
|
|
||||||
SBL
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,386,697
|
|
|
2,386,697
|
|
||||||
Total loans held for investment, net
|
|
$
|
2,101
|
|
|
$
|
—
|
|
|
$
|
2,101
|
|
|
$
|
38,970
|
|
|
$
|
17,117,028
|
|
|
$
|
17,158,099
|
|
(1)
|
Includes
$15 million
and
$18 million
of nonaccrual loans at
December 31, 2017
and
September 30, 2017
, respectively, which are performing pursuant to their contractual terms.
|
(2)
|
Excludes any net unearned income and deferred expenses.
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||||||||||||
$ in thousands
|
|
Gross
recorded
investment
|
|
Unpaid
principal
balance
|
|
Allowance
for losses
|
|
Gross
recorded
investment
|
|
Unpaid
principal
balance
|
|
Allowance
for losses
|
||||||||||||
Impaired loans with allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
C&I loans
|
|
$
|
4,843
|
|
|
$
|
5,910
|
|
|
$
|
1,846
|
|
|
$
|
5,221
|
|
|
$
|
6,160
|
|
|
$
|
1,963
|
|
Residential - first mortgage loans
|
|
22,663
|
|
|
29,403
|
|
|
2,375
|
|
|
23,977
|
|
|
31,100
|
|
|
2,504
|
|
||||||
Total
|
|
27,506
|
|
|
35,313
|
|
|
4,221
|
|
|
29,198
|
|
|
37,260
|
|
|
4,467
|
|
||||||
Impaired loans without allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CRE loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential - first mortgage loans
|
|
16,480
|
|
|
24,096
|
|
|
—
|
|
|
16,737
|
|
|
24,899
|
|
|
—
|
|
||||||
Total
|
|
16,480
|
|
|
24,096
|
|
|
—
|
|
|
16,737
|
|
|
24,899
|
|
|
—
|
|
||||||
Total impaired loans
|
|
$
|
43,986
|
|
|
$
|
59,409
|
|
|
$
|
4,221
|
|
|
$
|
45,935
|
|
|
$
|
62,159
|
|
|
$
|
4,467
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Average impaired loan balance:
|
|
|
|
|
||||
C&I loans
|
|
$
|
4,966
|
|
|
$
|
32,808
|
|
CRE loans
|
|
—
|
|
|
2,776
|
|
||
Residential - first mortgage loans
|
|
39,935
|
|
|
46,533
|
|
||
Total
|
|
$
|
44,901
|
|
|
$
|
82,117
|
|
Interest income recognized:
|
|
|
|
|
||||
Residential - first mortgage loans
|
|
$
|
287
|
|
|
$
|
333
|
|
Total
|
|
$
|
287
|
|
|
$
|
333
|
|
$ in thousands
|
|
Pass
|
|
Special mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I
|
|
$
|
7,343,153
|
|
|
$
|
35,606
|
|
|
$
|
111,460
|
|
|
$
|
—
|
|
|
$
|
7,490,219
|
|
CRE construction
|
|
164,847
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164,847
|
|
|||||
CRE
|
|
3,097,041
|
|
|
38,933
|
|
|
127
|
|
|
—
|
|
|
3,136,101
|
|
|||||
Tax-exempt
|
|
1,136,468
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,136,468
|
|
|||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage
|
|
3,194,572
|
|
|
6,914
|
|
|
42,277
|
|
|
—
|
|
|
3,243,763
|
|
|||||
Home equity
|
|
26,525
|
|
|
315
|
|
|
177
|
|
|
—
|
|
|
27,017
|
|
|||||
SBL
|
|
2,530,521
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,530,521
|
|
|||||
Total
|
|
$
|
17,493,127
|
|
|
$
|
81,768
|
|
|
$
|
154,041
|
|
|
$
|
—
|
|
|
$
|
17,728,936
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|||||||||||
C&I
|
|
$
|
7,232,777
|
|
|
$
|
63,964
|
|
|
$
|
89,169
|
|
|
$
|
—
|
|
|
$
|
7,385,910
|
|
CRE construction
|
|
112,681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112,681
|
|
|||||
CRE
|
|
3,048,847
|
|
|
57,315
|
|
|
128
|
|
|
—
|
|
|
3,106,290
|
|
|||||
Tax-exempt
|
|
1,017,791
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,017,791
|
|
|||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage
|
|
3,068,290
|
|
|
8,467
|
|
|
45,515
|
|
|
—
|
|
|
3,122,272
|
|
|||||
Home equity
|
|
26,352
|
|
|
75
|
|
|
31
|
|
|
—
|
|
|
26,458
|
|
|||||
SBL
|
|
2,386,697
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,386,697
|
|
|||||
Total
|
|
$
|
16,893,435
|
|
|
$
|
129,821
|
|
|
$
|
134,843
|
|
|
$
|
—
|
|
|
$
|
17,158,099
|
|
|
|
Loans held for investment
|
||||||||||||||||||||||||||
$ in thousands
|
|
C&I
|
|
CRE
construction
|
|
CRE
|
|
Tax-exempt
|
|
Residential mortgage
|
|
SBL
|
|
Total
|
||||||||||||||
Three months ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at beginning of period
|
|
$
|
119,901
|
|
|
$
|
1,421
|
|
|
$
|
41,749
|
|
|
$
|
6,381
|
|
|
$
|
16,691
|
|
|
$
|
4,299
|
|
|
$
|
190,442
|
|
Provision/(benefit) for loan losses
|
|
2,337
|
|
|
686
|
|
|
(1,104
|
)
|
|
537
|
|
|
(1,699
|
)
|
|
259
|
|
|
1,016
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Charge-offs
|
|
(603
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
|
—
|
|
|
(698
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
604
|
|
|
—
|
|
|
604
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(603
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
509
|
|
|
—
|
|
|
(94
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
(66
|
)
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
|||||||
Balance at end of period
|
|
$
|
121,569
|
|
|
$
|
2,107
|
|
|
$
|
40,616
|
|
|
$
|
6,918
|
|
|
$
|
15,501
|
|
|
$
|
4,558
|
|
|
$
|
191,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Three months ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at beginning of period
|
|
$
|
137,701
|
|
|
$
|
1,614
|
|
|
$
|
36,533
|
|
|
$
|
4,100
|
|
|
$
|
12,664
|
|
|
$
|
4,766
|
|
|
$
|
197,378
|
|
Provision/(benefit) for loan losses
|
|
(1,243
|
)
|
|
581
|
|
|
(2,010
|
)
|
|
393
|
|
|
997
|
|
|
242
|
|
|
(1,040
|
)
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Charge-offs
|
|
(3,389
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87
|
)
|
|
—
|
|
|
(3,476
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
5,013
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
5,078
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(3,389
|
)
|
|
—
|
|
|
5,013
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
1,602
|
|
|||||||
Foreign exchange translation adjustment
|
|
(164
|
)
|
|
(92
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(260
|
)
|
|||||||
Balance at end of period
|
|
$
|
132,905
|
|
|
$
|
2,103
|
|
|
$
|
39,532
|
|
|
$
|
4,493
|
|
|
$
|
13,639
|
|
|
$
|
5,008
|
|
|
$
|
197,680
|
|
|
|
Loans held for investment
|
||||||||||||||||||||||
|
|
Allowance for loan losses
|
|
Recorded investment
|
||||||||||||||||||||
$ in thousands
|
|
Individually evaluated for impairment
|
|
Collectively evaluated for impairment
|
|
Total
|
|
Individually evaluated for impairment
|
|
Collectively evaluated for impairment
|
|
Total
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
1,846
|
|
|
$
|
119,723
|
|
|
$
|
121,569
|
|
|
$
|
4,843
|
|
|
$
|
7,485,376
|
|
|
$
|
7,490,219
|
|
CRE construction
|
|
—
|
|
|
2,107
|
|
|
2,107
|
|
|
—
|
|
|
164,847
|
|
|
164,847
|
|
||||||
CRE
|
|
—
|
|
|
40,616
|
|
|
40,616
|
|
|
—
|
|
|
3,136,101
|
|
|
3,136,101
|
|
||||||
Tax-exempt
|
|
—
|
|
|
6,918
|
|
|
6,918
|
|
|
—
|
|
|
1,136,468
|
|
|
1,136,468
|
|
||||||
Residential mortgage
|
|
2,389
|
|
|
13,112
|
|
|
15,501
|
|
|
44,429
|
|
|
3,226,351
|
|
|
3,270,780
|
|
||||||
SBL
|
|
—
|
|
|
4,558
|
|
|
4,558
|
|
|
—
|
|
|
2,530,521
|
|
|
2,530,521
|
|
||||||
Total
|
|
$
|
4,235
|
|
|
$
|
187,034
|
|
|
$
|
191,269
|
|
|
$
|
49,272
|
|
|
$
|
17,679,664
|
|
|
$
|
17,728,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I
|
|
$
|
1,963
|
|
|
$
|
117,938
|
|
|
$
|
119,901
|
|
|
$
|
5,221
|
|
|
$
|
7,380,689
|
|
|
$
|
7,385,910
|
|
CRE construction
|
|
—
|
|
|
1,421
|
|
|
1,421
|
|
|
—
|
|
|
112,681
|
|
|
112,681
|
|
||||||
CRE
|
|
—
|
|
|
41,749
|
|
|
41,749
|
|
|
—
|
|
|
3,106,290
|
|
|
3,106,290
|
|
||||||
Tax-exempt
|
|
—
|
|
|
6,381
|
|
|
6,381
|
|
|
—
|
|
|
1,017,791
|
|
|
1,017,791
|
|
||||||
Residential mortgage
|
|
2,506
|
|
|
14,185
|
|
|
16,691
|
|
|
47,368
|
|
|
3,101,362
|
|
|
3,148,730
|
|
||||||
SBL
|
|
—
|
|
|
4,299
|
|
|
4,299
|
|
|
—
|
|
|
2,386,697
|
|
|
2,386,697
|
|
||||||
Total
|
|
$
|
4,469
|
|
|
$
|
185,973
|
|
|
$
|
190,442
|
|
|
$
|
52,589
|
|
|
$
|
17,105,510
|
|
|
$
|
17,158,099
|
|
$ in thousands
|
|
Aggregate assets
|
|
Aggregate liabilities
|
||||
December 31, 2017
|
|
|
|
|
||||
Private Equity Interests
|
|
$
|
97,475
|
|
|
$
|
3,614
|
|
LIHTC Fund in which RJ Bank is an investor member
|
|
56,556
|
|
|
1,154
|
|
||
Guaranteed LIHTC Fund
|
|
50,870
|
|
|
2,943
|
|
||
Other LIHTC Funds
|
|
7,519
|
|
|
2,915
|
|
||
Restricted Stock Trust Fund
|
|
17,951
|
|
|
17,951
|
|
||
Total
|
|
$
|
230,371
|
|
|
$
|
28,577
|
|
|
|
|
|
|
||||
September 30, 2017
|
|
|
|
|
|
|
||
Private Equity Interests
|
|
$
|
104,414
|
|
|
$
|
3,851
|
|
LIHTC Fund in which RJ Bank is an investor member
|
|
57,719
|
|
|
1,055
|
|
||
Guaranteed LIHTC Fund
|
|
51,400
|
|
|
2,872
|
|
||
Other LIHTC Funds
|
|
7,418
|
|
|
2,544
|
|
||
Restricted Stock Trust Fund
|
|
12,122
|
|
|
12,122
|
|
||
Total
|
|
$
|
233,073
|
|
|
$
|
22,444
|
|
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
2,343
|
|
|
$
|
2,052
|
|
Assets segregated pursuant to regulations and other segregated assets
|
|
4,242
|
|
|
4,590
|
|
||
Other receivables
|
|
79
|
|
|
168
|
|
||
Intercompany receivables
|
|
443
|
|
|
454
|
|
||
Other investments
|
|
94,610
|
|
|
101,905
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
|
110,662
|
|
|
111,743
|
|
||
Trust fund investment in RJF common stock
|
|
17,949
|
|
|
12,120
|
|
||
Other assets
|
|
43
|
|
|
41
|
|
||
Total assets
|
|
$
|
230,371
|
|
|
$
|
233,073
|
|
|
|
|
|
|
||||
Liabilities and equity:
|
|
|
|
|
|
|
||
Other payables
|
|
$
|
11,968
|
|
|
$
|
9,667
|
|
Intercompany payables
|
|
22,302
|
|
|
16,520
|
|
||
Total liabilities
|
|
34,270
|
|
|
26,187
|
|
||
RJF equity
|
|
96,968
|
|
|
101,445
|
|
||
Noncontrolling interests
|
|
99,133
|
|
|
105,441
|
|
||
Total equity
|
|
196,101
|
|
|
206,886
|
|
||
Total liabilities and equity
|
|
$
|
230,371
|
|
|
$
|
233,073
|
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||||||||||||
$ in thousands
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
||||||||||||
Private Equity Interests
|
|
$
|
9,270,590
|
|
|
$
|
177,780
|
|
|
$
|
71,048
|
|
|
$
|
10,485,611
|
|
|
$
|
174,354
|
|
|
$
|
73,457
|
|
LIHTC Funds
|
|
5,432,342
|
|
|
2,129,756
|
|
|
86,098
|
|
|
5,372,367
|
|
|
2,134,600
|
|
|
60,959
|
|
||||||
NMTC Funds
|
|
30,196
|
|
|
115
|
|
|
9
|
|
|
30,297
|
|
|
105
|
|
|
9
|
|
||||||
Other
|
|
169,462
|
|
|
88,615
|
|
|
3,535
|
|
|
169,462
|
|
|
88,615
|
|
|
3,163
|
|
||||||
Total
|
|
$
|
14,902,590
|
|
|
$
|
2,396,266
|
|
|
$
|
160,690
|
|
|
$
|
16,057,737
|
|
|
$
|
2,397,674
|
|
|
$
|
137,588
|
|
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
Goodwill
|
|
$
|
479,775
|
|
|
$
|
410,723
|
|
Identifiable intangible assets, net
|
|
171,564
|
|
|
82,460
|
|
||
Total goodwill and identifiable intangible assets, net
|
|
$
|
651,339
|
|
|
$
|
493,183
|
|
|
|
Segment
|
|
|
||||||||||||
$ in thousands
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
Total
|
||||||||
For the three months ended December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Goodwill as of beginning of period
|
|
$
|
276,713
|
|
|
$
|
134,010
|
|
|
$
|
—
|
|
|
$
|
410,723
|
|
Additions
|
|
—
|
|
|
—
|
|
|
69,234
|
|
|
69,234
|
|
||||
Foreign currency translation
|
|
(179
|
)
|
|
(3
|
)
|
|
—
|
|
|
(182
|
)
|
||||
Goodwill as of end of period
|
|
$
|
276,534
|
|
|
$
|
134,007
|
|
|
$
|
69,234
|
|
|
$
|
479,775
|
|
|
|
|
|
|
|
|
|
|
||||||||
For the three months ended December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Goodwill as of beginning of period
|
|
$
|
275,521
|
|
|
$
|
132,551
|
|
|
$
|
—
|
|
|
$
|
408,072
|
|
Additions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency translation
|
|
(537
|
)
|
|
(1,038
|
)
|
|
—
|
|
|
(1,575
|
)
|
||||
Goodwill as of end of period
|
|
$
|
274,984
|
|
|
$
|
131,513
|
|
|
$
|
—
|
|
|
$
|
406,497
|
|
|
|
Segment
|
|
|||||||||||||
$ in thousands
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
Total
|
||||||||
For the three months ended December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Net identifiable intangible assets as of beginning of period
|
|
$
|
47,026
|
|
|
$
|
23,077
|
|
|
$
|
12,357
|
|
|
$
|
82,460
|
|
Additions
|
|
—
|
|
|
—
|
|
|
92,290
|
|
|
92,290
|
|
||||
Amortization expense
|
|
(1,496
|
)
|
|
(769
|
)
|
|
(871
|
)
|
|
(3,136
|
)
|
||||
Foreign currency translation
|
|
(9
|
)
|
|
—
|
|
|
(41
|
)
|
|
(50
|
)
|
||||
Net identifiable intangible assets as of end of period
|
|
$
|
45,521
|
|
|
$
|
22,308
|
|
|
$
|
103,735
|
|
|
$
|
171,564
|
|
|
|
|
|
|
|
|
|
|
||||||||
For the three months ended December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Net identifiable intangible assets as of beginning of period
|
|
$
|
52,936
|
|
|
$
|
27,937
|
|
|
$
|
14,101
|
|
|
$
|
94,974
|
|
Additions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Amortization expense
|
|
(1,520
|
)
|
|
(1,565
|
)
|
|
(498
|
)
|
|
(3,583
|
)
|
||||
Foreign currency translation
|
|
(45
|
)
|
|
(38
|
)
|
|
(132
|
)
|
|
(215
|
)
|
||||
Net identifiable intangible assets as of end of period
|
|
$
|
51,371
|
|
|
$
|
26,334
|
|
|
$
|
13,471
|
|
|
$
|
91,176
|
|
|
|
Weighted average useful life
(in years)
|
|
Amount acquired
(in thousands)
|
||
Customer relationships
|
|
13
|
|
$
|
34,900
|
|
Trade name
|
|
20
|
|
3,590
|
|
|
Developed technology
|
|
10
|
|
1,800
|
|
|
Intangible assets subtotal
|
|
13
|
|
$
|
40,290
|
|
Non-amortizing customer relationships
|
|
Indefinite
|
|
52,000
|
|
|
Total intangible assets acquired
|
|
|
|
$
|
92,290
|
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||||
$ in thousands
|
|
Gross carrying value
|
|
Accumulated amortization
|
|
Gross carrying value
|
|
Accumulated amortization
|
||||||||
Customer relationships
|
|
$
|
133,610
|
|
|
$
|
(32,275
|
)
|
|
$
|
99,749
|
|
|
$
|
(31,098
|
)
|
Non-amortizing customer relationships
|
|
52,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Trade name
|
|
11,854
|
|
|
(2,387
|
)
|
|
8,366
|
|
|
(2,076
|
)
|
||||
Developed technology
|
|
3,430
|
|
|
(809
|
)
|
|
1,630
|
|
|
(706
|
)
|
||||
Intellectual property
|
|
538
|
|
|
(144
|
)
|
|
542
|
|
|
(131
|
)
|
||||
Non-compete agreements
|
|
2,902
|
|
|
(1,347
|
)
|
|
3,336
|
|
|
(1,551
|
)
|
||||
Seller relationship agreements
|
|
5,300
|
|
|
(1,108
|
)
|
|
5,300
|
|
|
(901
|
)
|
||||
Total
|
|
$
|
209,634
|
|
|
$
|
(38,070
|
)
|
|
$
|
118,923
|
|
|
$
|
(36,463
|
)
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||
$ in thousands
|
|
Balance
|
|
Weighted-average rate
|
|
Balance
|
|
Weighted-average rate
|
||||||
Savings and money market accounts
|
|
$
|
18,377,271
|
|
|
0.14
|
%
|
|
$
|
17,391,091
|
|
|
0.14
|
%
|
Certificates of deposit
|
|
333,010
|
|
|
1.64
|
%
|
|
314,685
|
|
|
1.60
|
%
|
||
NOW accounts
|
|
5,982
|
|
|
0.01
|
%
|
|
5,197
|
|
|
0.01
|
%
|
||
Demand deposits (non-interest-bearing)
|
|
9,282
|
|
|
—
|
|
|
21,389
|
|
|
—
|
|
||
Total bank deposits
|
|
$
|
18,725,545
|
|
|
0.17
|
%
|
|
$
|
17,732,362
|
|
|
0.17
|
%
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||||
$ in thousands
|
|
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
|
||||||||
Three months or less
|
|
$
|
11,405
|
|
|
$
|
5,583
|
|
|
$
|
8,704
|
|
|
$
|
4,132
|
|
Over three through six months
|
|
5,251
|
|
|
4,146
|
|
|
4,692
|
|
|
3,894
|
|
||||
Over six through twelve months
|
|
42,837
|
|
|
16,649
|
|
|
34,005
|
|
|
11,865
|
|
||||
Over one through two years
|
|
37,836
|
|
|
20,950
|
|
|
38,713
|
|
|
20,019
|
|
||||
Over two through three years
|
|
49,602
|
|
|
27,797
|
|
|
48,082
|
|
|
27,847
|
|
||||
Over three through four years
|
|
9,462
|
|
|
7,281
|
|
|
21,819
|
|
|
12,761
|
|
||||
Over four through five years
|
|
62,534
|
|
|
31,677
|
|
|
50,805
|
|
|
27,347
|
|
||||
Total
|
|
$
|
218,927
|
|
|
$
|
114,083
|
|
|
$
|
206,820
|
|
|
$
|
107,865
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Certificates of deposit
|
|
$
|
1,272
|
|
|
$
|
1,135
|
|
Savings, money market, and NOW accounts
|
|
6,237
|
|
|
1,648
|
|
||
Total interest expense on deposits
|
|
$
|
7,509
|
|
|
$
|
2,783
|
|
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
FHLB advances
|
|
$
|
875,000
|
|
|
$
|
875,000
|
|
RJF Credit Facility
|
|
300,000
|
|
|
—
|
|
||
Secured lines of credit
|
|
180,000
|
|
|
260,000
|
|
||
Unsecured lines of credit
|
|
150,000
|
|
|
350,000
|
|
||
Mortgage notes payable and other
|
|
27,826
|
|
|
29,012
|
|
||
Total other borrowings
|
|
$
|
1,532,826
|
|
|
$
|
1,514,012
|
|
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
Standby letters of credit
|
|
$
|
38,436
|
|
|
$
|
39,670
|
|
Open-end consumer lines of credit (primarily SBL)
|
|
$
|
5,782,262
|
|
|
$
|
5,323,003
|
|
Commercial lines of credit
|
|
$
|
1,723,429
|
|
|
$
|
1,673,272
|
|
Unfunded loan commitments
|
|
$
|
521,676
|
|
|
$
|
386,950
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Unrealized loss on available-for-sale securities and non-credit portion of other-than-temporary impairment losses
|
|
$
|
(11,953
|
)
|
|
$
|
(4,146
|
)
|
Unrealized gain/(loss) on currency translations, net of the impact of net investment hedges
|
|
(187
|
)
|
|
1,001
|
|
||
Unrealized gain on cash flow hedges
|
|
6,885
|
|
|
25,738
|
|
||
Net other comprehensive income/(loss)
|
|
$
|
(5,255
|
)
|
|
$
|
22,593
|
|
$ in thousands
|
|
Net investment hedges
|
|
Currency translations
|
|
Sub-total: net investment hedges and currency translations
|
|
Available- for-sale securities
|
|
Cash flow hedges
|
|
Total
|
||||||||||||
Three months ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated other comprehensive income/(loss) as of the beginning of the period
|
|
$
|
60,201
|
|
|
$
|
(79,677
|
)
|
|
$
|
(19,476
|
)
|
|
$
|
(2,472
|
)
|
|
$
|
6,749
|
|
|
$
|
(15,199
|
)
|
Other comprehensive income/(loss) before reclassifications and taxes
|
|
7,607
|
|
|
(5,760
|
)
|
|
1,847
|
|
|
(15,549
|
)
|
|
6,774
|
|
|
(6,928
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income, before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,409
|
|
|
1,409
|
|
||||||
Pre-tax net other comprehensive income/(loss)
|
|
7,607
|
|
|
(5,760
|
)
|
|
1,847
|
|
|
(15,549
|
)
|
|
8,183
|
|
|
(5,519
|
)
|
||||||
Income tax effect
|
|
(2,034
|
)
|
|
—
|
|
|
(2,034
|
)
|
|
3,596
|
|
|
(1,298
|
)
|
|
264
|
|
||||||
Net other comprehensive income/(loss) for the period, net of tax
|
|
5,573
|
|
|
(5,760
|
)
|
|
(187
|
)
|
|
(11,953
|
)
|
|
6,885
|
|
|
(5,255
|
)
|
||||||
Accumulated other comprehensive income/(loss) as of end of period
|
|
$
|
65,774
|
|
|
$
|
(85,437
|
)
|
|
$
|
(19,663
|
)
|
|
$
|
(14,425
|
)
|
|
$
|
13,634
|
|
|
$
|
(20,454
|
)
|
Three months ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated other comprehensive income/(loss) as of the beginning of the period
|
|
$
|
86,482
|
|
|
$
|
(121,576
|
)
|
|
$
|
(35,094
|
)
|
|
$
|
(4,156
|
)
|
|
$
|
(16,483
|
)
|
|
$
|
(55,733
|
)
|
Other comprehensive income/(loss) before reclassifications and taxes
|
|
18,098
|
|
|
(17,756
|
)
|
|
342
|
|
|
(6,858
|
)
|
|
39,941
|
|
|
33,425
|
|
||||||
Amounts reclassified from accumulated other comprehensive income/(loss), before tax
|
|
—
|
|
|
6,537
|
|
|
6,537
|
|
|
(12
|
)
|
|
1,572
|
|
|
8,097
|
|
||||||
Pre-tax net other comprehensive income/(loss)
|
|
18,098
|
|
|
(11,219
|
)
|
|
6,879
|
|
|
(6,870
|
)
|
|
41,513
|
|
|
41,522
|
|
||||||
Income tax effect
|
|
(6,772
|
)
|
|
894
|
|
|
(5,878
|
)
|
|
2,724
|
|
|
(15,775
|
)
|
|
(18,929
|
)
|
||||||
Net other comprehensive income/(loss) for the period, net of tax
|
|
11,326
|
|
|
(10,325
|
)
|
|
1,001
|
|
|
(4,146
|
)
|
|
25,738
|
|
|
22,593
|
|
||||||
Accumulated other comprehensive income/(loss) as of end of period
|
|
$
|
97,808
|
|
|
$
|
(131,901
|
)
|
|
$
|
(34,093
|
)
|
|
$
|
(8,302
|
)
|
|
$
|
9,255
|
|
|
$
|
(33,140
|
)
|
Accumulated other comprehensive income/(loss) components:
$ in thousands
|
|
Increase/(decrease) in amounts reclassified from accumulated other comprehensive income/(loss)
|
|
Affected line items in income statement
|
||
Three months ended December 31, 2017
|
|
|
|
|
||
RJ Bank cash flow hedges
|
|
$
|
1,409
|
|
|
Interest expense
|
|
|
1,409
|
|
|
Total before tax
|
|
Income tax effect
|
|
(402
|
)
|
|
Provision for income taxes
|
|
Total reclassifications for the period
|
|
$
|
1,007
|
|
|
Net of tax
|
Three months ended December 31, 2016
|
||||||
RJ Bank available-for-sale securities
|
|
$
|
(12
|
)
|
|
Other revenue
|
RJ Bank cash flow hedges
|
|
1,572
|
|
|
Interest expense
|
|
Currency translations
|
|
6,537
|
|
|
Other expense
|
|
|
|
8,097
|
|
|
Total before tax
|
|
Income tax effect
|
|
(3,076
|
)
|
|
Provision for income taxes
|
|
Total reclassifications for the period
|
|
$
|
5,021
|
|
|
Net of tax
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Interest income:
|
|
|
|
|
||||
Margin balances
|
|
$
|
24,095
|
|
|
$
|
19,981
|
|
Assets segregated pursuant to regulations and other segregated assets
|
|
12,122
|
|
|
7,170
|
|
||
Bank loans, net of unearned income
|
|
160,020
|
|
|
135,525
|
|
||
Available-for-sale securities
|
|
10,715
|
|
|
3,400
|
|
||
Trading instruments
|
|
5,138
|
|
|
5,006
|
|
||
Securities loaned
|
|
3,058
|
|
|
2,732
|
|
||
Loans to financial advisors
|
|
3,502
|
|
|
3,308
|
|
||
Corporate cash and all other
|
|
13,079
|
|
|
5,660
|
|
||
Total interest income
|
|
$
|
231,729
|
|
|
$
|
182,782
|
|
Interest expense:
|
|
|
|
|
|
|
||
Brokerage client liabilities
|
|
$
|
2,529
|
|
|
$
|
676
|
|
Bank deposits
|
|
7,509
|
|
|
2,783
|
|
||
Trading instruments sold but not yet purchased
|
|
1,706
|
|
|
1,328
|
|
||
Securities borrowed
|
|
1,479
|
|
|
1,228
|
|
||
Borrowed funds
|
|
5,865
|
|
|
3,719
|
|
||
Senior notes
|
|
18,180
|
|
|
24,699
|
|
||
Other
|
|
2,163
|
|
|
1,533
|
|
||
Total interest expense
|
|
39,431
|
|
|
35,966
|
|
||
Net interest income
|
|
192,298
|
|
|
146,816
|
|
||
Bank loan loss (provision)/benefit
|
|
(1,016
|
)
|
|
1,040
|
|
||
Net interest income after bank loan loss provision
|
|
$
|
191,282
|
|
|
$
|
147,856
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Total share-based expense
|
|
$
|
3,112
|
|
|
$
|
4,176
|
|
Income tax benefit related to share-based expense
|
|
307
|
|
|
545
|
|
|
|
Pre-tax expense not yet recognized
|
|
Remaining weighted-average amortization period
|
||
|
|
(in thousands)
|
|
(in years)
|
||
Employees
|
|
$
|
12,757
|
|
|
2.4
|
Independent contractor financial advisors
|
|
4,431
|
|
|
3.5
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Total share-based expense
|
|
$
|
30,477
|
|
|
$
|
27,650
|
|
Income tax benefit related to share-based expense
|
|
8,090
|
|
|
10,035
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Amortization of DBRSU prepaid compensation asset
|
|
$
|
1,312
|
|
|
$
|
1,542
|
|
Increase in fair value of derivative liability
|
|
2,613
|
|
|
6,375
|
|
||
Net expense before tax
|
|
$
|
3,925
|
|
|
$
|
7,917
|
|
Income tax benefit
|
|
$
|
1,104
|
|
|
$
|
2,920
|
|
|
|||||||||||||||||||||
|
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized under regulatory provisions
|
|||||||||||||||
$ in thousands
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
RJF as of December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET1
|
|
$
|
5,052,629
|
|
|
22.3
|
%
|
|
$
|
1,018,048
|
|
|
4.5
|
%
|
|
$
|
1,470,513
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
5,052,629
|
|
|
22.3
|
%
|
|
$
|
1,357,397
|
|
|
6.0
|
%
|
|
$
|
1,809,862
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
5,266,339
|
|
|
23.3
|
%
|
|
$
|
1,809,862
|
|
|
8.0
|
%
|
|
$
|
2,262,328
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
5,052,629
|
|
|
14.4
|
%
|
|
$
|
1,400,054
|
|
|
4.0
|
%
|
|
$
|
1,750,068
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
RJF as of September 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET1
|
|
$
|
5,081,335
|
|
|
23.0
|
%
|
|
$
|
994,950
|
|
|
4.5
|
%
|
|
$
|
1,437,150
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
5,081,335
|
|
|
23.0
|
%
|
|
$
|
1,326,600
|
|
|
6.0
|
%
|
|
$
|
1,768,800
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
5,293,331
|
|
|
23.9
|
%
|
|
$
|
1,768,800
|
|
|
8.0
|
%
|
|
$
|
2,211,000
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
5,081,335
|
|
|
15.0
|
%
|
|
$
|
1,359,168
|
|
|
4.0
|
%
|
|
$
|
1,698,960
|
|
|
5.0
|
%
|
|
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized under regulatory provisions
|
|||||||||||||||
$ in thousands
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
RJ Bank as of December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET1
|
|
$
|
1,825,550
|
|
|
12.2
|
%
|
|
$
|
674,617
|
|
|
4.5
|
%
|
|
$
|
974,446
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
1,825,550
|
|
|
12.2
|
%
|
|
$
|
899,489
|
|
|
6.0
|
%
|
|
$
|
1,199,319
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
2,013,120
|
|
|
13.4
|
%
|
|
$
|
1,199,319
|
|
|
8.0
|
%
|
|
$
|
1,499,148
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
1,825,550
|
|
|
8.6
|
%
|
|
$
|
852,884
|
|
|
4.0
|
%
|
|
$
|
1,066,105
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
RJ Bank as of September 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
CET1
|
|
$
|
1,821,306
|
|
|
12.5
|
%
|
|
$
|
654,901
|
|
|
4.5
|
%
|
|
$
|
945,968
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
1,821,306
|
|
|
12.5
|
%
|
|
$
|
873,201
|
|
|
6.0
|
%
|
|
$
|
1,164,268
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
2,003,461
|
|
|
13.8
|
%
|
|
$
|
1,164,268
|
|
|
8.0
|
%
|
|
$
|
1,455,335
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
1,821,306
|
|
|
8.9
|
%
|
|
$
|
816,304
|
|
|
4.0
|
%
|
|
$
|
1,020,379
|
|
|
5.0
|
%
|
|
|
As of
|
||||||
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
Raymond James & Associates, Inc.:
|
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
|
||||
Net capital as a percent of aggregate debit items
|
|
25.37
|
%
|
|
21.37
|
%
|
||
Net capital
|
|
$
|
694,733
|
|
|
$
|
589,420
|
|
Less: required net capital
|
|
(54,758
|
)
|
|
(55,164
|
)
|
||
Excess net capital
|
|
$
|
639,975
|
|
|
$
|
534,256
|
|
|
|
As of
|
||||||
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
Raymond James Financial Services, Inc.:
|
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
|
||||
Net capital
|
|
$
|
23,489
|
|
|
$
|
34,488
|
|
Less: required net capital
|
|
(250
|
)
|
|
(250
|
)
|
||
Excess net capital
|
|
$
|
23,239
|
|
|
$
|
34,238
|
|
|
|
As of
|
||||||
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
Raymond James Ltd.:
|
|
|
|
|
||||
Risk adjusted capital before minimum
|
|
$
|
77,869
|
|
|
$
|
108,985
|
|
Less: required minimum capital
|
|
(250
|
)
|
|
(250
|
)
|
||
Risk adjusted capital
|
|
$
|
77,619
|
|
|
$
|
108,735
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands, except per share amounts
|
|
2017
|
|
2016
|
||||
Income for basic earnings per common share:
|
|
|
|
|
||||
Net income attributable to RJF
|
|
$
|
118,842
|
|
|
$
|
146,567
|
|
Less allocation of earnings and dividends to participating securities
|
|
(185
|
)
|
|
(310
|
)
|
||
Net income attributable to RJF common shareholders
|
|
$
|
118,657
|
|
|
$
|
146,257
|
|
Income for diluted earnings per common share:
|
|
|
|
|
|
|
||
Net income attributable to RJF
|
|
$
|
118,842
|
|
|
$
|
146,567
|
|
Less allocation of earnings and dividends to participating securities
|
|
(182
|
)
|
|
(303
|
)
|
||
Net income attributable to RJF common shareholders
|
|
$
|
118,660
|
|
|
$
|
146,264
|
|
Common shares:
|
|
|
|
|
|
|
||
Average common shares in basic computation
|
|
144,469
|
|
|
142,110
|
|
||
Dilutive effect of outstanding stock options and certain RSUs
|
|
3,792
|
|
|
3,565
|
|
||
Average common shares used in diluted computation
|
|
148,261
|
|
|
145,675
|
|
||
Earnings per common share:
|
|
|
|
|
|
|
||
Basic
|
|
$
|
0.82
|
|
|
$
|
1.03
|
|
Diluted
|
|
$
|
0.80
|
|
|
$
|
1.00
|
|
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive
|
|
1,355
|
|
|
2,127
|
|
|
Three months ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
Dividends per common share - declared
|
$
|
0.25
|
|
|
$
|
0.22
|
|
Dividends per common share - paid
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Revenues:
|
|
|
|
|
||||
Private Client Group
|
|
$
|
1,238,040
|
|
|
$
|
1,043,316
|
|
Capital Markets
|
|
222,534
|
|
|
236,982
|
|
||
Asset Management
|
|
150,611
|
|
|
114,096
|
|
||
RJ Bank
|
|
178,141
|
|
|
144,517
|
|
||
Other
|
|
16,383
|
|
|
15,459
|
|
||
Intersegment eliminations
|
|
(40,117
|
)
|
|
(25,602
|
)
|
||
Total revenues
|
|
$
|
1,765,592
|
|
|
$
|
1,528,768
|
|
Income/(loss) excluding noncontrolling interests and before provision for income taxes:
|
||||||||
Private Client Group
|
|
$
|
155,063
|
|
|
$
|
73,358
|
|
Capital Markets
|
|
4,807
|
|
|
21,444
|
|
||
Asset Management
|
|
57,399
|
|
|
41,909
|
|
||
RJ Bank
|
|
114,155
|
|
|
104,121
|
|
||
Other
|
|
(20,181
|
)
|
|
(34,453
|
)
|
||
Pre-tax income excluding noncontrolling interests
|
|
311,243
|
|
|
206,379
|
|
||
Net income attributable to noncontrolling interests
|
|
441
|
|
|
1,136
|
|
||
Income including noncontrolling interests and before provision for income taxes
|
|
$
|
311,684
|
|
|
$
|
207,515
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Net interest income/(expense):
|
|
|
|
|
||||
Private Client Group
|
|
$
|
38,487
|
|
|
$
|
30,387
|
|
Capital Markets
|
|
1,456
|
|
|
2,508
|
|
||
Asset Management
|
|
330
|
|
|
63
|
|
||
RJ Bank
|
|
163,039
|
|
|
134,272
|
|
||
Other
|
|
(11,014
|
)
|
|
(20,414
|
)
|
||
Net interest income
|
|
$
|
192,298
|
|
|
$
|
146,816
|
|
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
Total assets:
|
|
|
|
|
||||
Private Client Group
|
|
$
|
10,328,475
|
|
|
$
|
9,967,320
|
|
Capital Markets
|
|
2,375,078
|
|
|
2,396,033
|
|
||
Asset Management
|
|
347,922
|
|
|
151,111
|
|
||
RJ Bank
|
|
21,600,312
|
|
|
20,611,898
|
|
||
Other
|
|
1,433,112
|
|
|
1,757,094
|
|
||
Total
|
|
$
|
36,084,899
|
|
|
$
|
34,883,456
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Revenues:
|
|
|
|
|
||||
U.S.
|
|
$
|
1,633,022
|
|
|
$
|
1,416,281
|
|
Canada
|
|
99,286
|
|
|
84,845
|
|
||
Europe
|
|
33,284
|
|
|
22,970
|
|
||
Other
|
|
—
|
|
|
4,672
|
|
||
Total
|
|
$
|
1,765,592
|
|
|
$
|
1,528,768
|
|
|
|
|
|
|
||||
Pre-tax income/(loss) excluding noncontrolling interests:
|
|
|
|
|
|
|||
U.S.
|
|
$
|
305,289
|
|
|
$
|
214,205
|
|
Canada
|
|
8,665
|
|
|
(1,537
|
)
|
||
Europe
|
|
(2,711
|
)
|
|
(2,688
|
)
|
||
Other
|
|
—
|
|
|
(3,601
|
)
|
||
Total
|
|
$
|
311,243
|
|
|
$
|
206,379
|
|
$ in thousands
|
|
December 31, 2017
|
|
September 30, 2017
|
||||
Total assets:
|
|
|
|
|
||||
U.S.
|
|
$
|
33,291,193
|
|
|
$
|
32,200,852
|
|
Canada
|
|
2,706,114
|
|
|
2,592,480
|
|
||
Europe
|
|
78,851
|
|
|
81,090
|
|
||
Other
|
|
8,741
|
|
|
9,034
|
|
||
Total
|
|
$
|
36,084,899
|
|
|
$
|
34,883,456
|
|
INDEX
|
|
|
PAGE
|
Introduction
|
|
Factors affecting “forward-looking statements”
|
|
Executive overview
|
|
Segments
|
|
Reconciliation of GAAP measures to non-GAAP measures
|
|
Net interest analysis
|
|
Results of Operations
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
RJ Bank
|
|
Other
|
|
Certain statistical disclosures by bank holding companies
|
|
Liquidity and capital resources
|
|
Sources of liquidity
|
|
Statement of financial condition analysis
|
|
Contractual obligations
|
|
Regulatory
|
|
Critical accounting estimates
|
|
Recent accounting developments
|
|
Off-Balance sheet arrangements
|
|
Effects of inflation
|
|
Risk management
|
•
|
Our Private Client Group segment generated net revenues of
$1.23 billion
, a
19%
increase, and pre-tax income of
$155 million
increased
111%
over the prior year period which included $30 million in legal expenses related to the Jay Peak matter. The increase in net revenues was primarily attributable to an increase in securities commissions and fees, driven by a stronger market environment and continued strong recruiting and retention results. The segment also benefited from the impact of higher short-term interest rates, resulting in an increase in account and service fees related to client cash balances in the RJBDP. Non-interest expenses
increased
$111 million
, or
12%
, primarily resulting from increases in compensation, commissions and benefits expenses, offset by a decrease in the aforementioned legal expenses.
|
•
|
The Capital Markets segment generated net revenues of
$217 million
, a
7%
decrease over the prior year period. The decrease in net revenues was primarily due to a decrease in institutional commissions due to lower market volatility. Investment banking revenues increased slightly, as higher merger & acquisition and advisory fees more than offset lower equity underwriting fees and tax credit fund syndication fees. Non-interest expenses were relatively flat compared with the prior year period which, combined with the decline in net revenues, contributed to a
78%
decline in pre-tax income.
|
•
|
Our Asset Management segment benefited from increased fee-based client assets, generating a
32%
increase in net revenues to
$151 million
, while pre-tax income
increased
37%
to
$57 million
. The increase in net revenues primarily reflected increases in advisory fee revenues from managed programs and, to a lesser degree, non-discretionary asset-based administration fee revenues. Financial assets under management in managed programs increased 64% over the prior year level aided by the acquisition of the Scout Group during the quarter. Non-interest expenses
increased
$19 million
, or
27%
, primarily resulting from increased investment sub-advisory fees and acquisition-related increases in administrative & incentive compensation and benefits expense.
|
•
|
RJ Bank generated a
20%
increase in net revenues to
$165 million
, while pre-tax income
increased
10%
to
$114 million
. The increase in pre-tax income resulted primarily from an increase in net interest income, partially offset by higher affiliate deposit fees paid to the Private Client Group due to increased balances. Net interest income
increased
due to growth in average interest-earning assets and an increase in the net interest margin.
|
•
|
Activities in our Other segment reflected a pre-tax loss that was
$14 million
, or
41%
less than the prior year, primarily due to a decrease in acquisition-related expenses and lower interest expense related to a decrease in the average outstanding balance and average yield of our senior notes payable.
|
|
|
Three months ended December 31,
|
|||||||||
$ in thousands
|
|
2017
|
|
2016
|
|
% change
|
|||||
Total company
|
|
|
|
|
|
|
|||||
Net revenues
|
|
$
|
1,726,161
|
|
|
$
|
1,492,802
|
|
|
16
|
%
|
Pre-tax income excluding noncontrolling interests
|
|
$
|
311,243
|
|
|
$
|
206,379
|
|
|
51
|
%
|
|
|
|
|
|
|
|
|||||
Private Client Group
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
$
|
1,233,051
|
|
|
$
|
1,040,089
|
|
|
19
|
%
|
Pre-tax income
|
|
$
|
155,063
|
|
|
$
|
73,358
|
|
|
111
|
%
|
|
|
|
|
|
|
|
|||||
Capital Markets
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
$
|
216,665
|
|
|
$
|
233,016
|
|
|
(7
|
)%
|
Pre-tax income
|
|
$
|
4,807
|
|
|
$
|
21,444
|
|
|
(78
|
)%
|
|
|
|
|
|
|
|
|||||
Asset Management
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
$
|
150,600
|
|
|
$
|
114,082
|
|
|
32
|
%
|
Pre-tax income
|
|
$
|
57,399
|
|
|
$
|
41,909
|
|
|
37
|
%
|
|
|
|
|
|
|
|
|||||
RJ Bank
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
$
|
165,185
|
|
|
$
|
138,015
|
|
|
20
|
%
|
Pre-tax income
|
|
$
|
114,155
|
|
|
$
|
104,121
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|||||
Other
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
$
|
(2,920
|
)
|
|
$
|
(9,643
|
)
|
|
70
|
%
|
Pre-tax loss
|
|
$
|
(20,181
|
)
|
|
$
|
(34,453
|
)
|
|
41
|
%
|
|
|
|
|
|
|
|
|||||
Intersegment eliminations
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
$
|
(36,420
|
)
|
|
$
|
(22,757
|
)
|
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands, except per share amounts
|
|
2017
|
|
2016
|
||||
Net income
(1)
|
|
$
|
118,842
|
|
|
$
|
146,567
|
|
Non-GAAP adjustments
:
|
|
|
|
|
||||
Acquisition-related expenses
(2)
|
|
3,927
|
|
|
12,666
|
|
||
Jay Peak matter
(3)
|
|
—
|
|
|
30,000
|
|
||
Sub-total pre-tax non-GAAP adjustments
|
|
3,927
|
|
|
42,666
|
|
||
Tax effect on non-GAAP adjustments above
|
|
(1,100
|
)
|
|
(12,365
|
)
|
||
Discrete impact of the Tax Act
(4)
|
|
117,169
|
|
|
—
|
|
||
Total non-GAAP adjustments, net of tax
|
|
119,996
|
|
|
30,301
|
|
||
Adjusted net income
|
|
$
|
238,838
|
|
|
$
|
176,868
|
|
|
|
|
|
|
||||
Earnings per common share
:
|
|
|
|
|
||||
Basic
|
|
$
|
0.82
|
|
|
$
|
1.03
|
|
Diluted
|
|
$
|
0.80
|
|
|
$
|
1.00
|
|
Adjusted earnings per common share
:
|
|
|
|
|
||||
Adjusted basic
|
|
$
|
1.65
|
|
|
$
|
1.24
|
|
Adjusted diluted
|
|
$
|
1.61
|
|
|
$
|
1.21
|
|
Effective tax rate:
|
|
|
|
|
|
|
|||||
For the three months ended December 31, 2017
($ in thousands)
|
|
Pre-tax income including noncontrolling interests
|
|
Provision for income taxes
|
|
Effective tax rate
|
|||||
|
|
$
|
311,684
|
|
|
$
|
192,401
|
|
|
61.7
|
%
|
Less: discrete impact of the Tax Act
(4)
|
|
|
|
117,169
|
|
|
|
||||
As adjusted for discrete impact of the Tax Act
|
|
|
|
$
|
75,232
|
|
|
24.1
|
%
|
(1)
|
Excludes noncontrolling interests.
|
(2)
|
See
Note 3
of the Notes to Condensed Consolidated Financial Statements in this Form 10-Q.
|
(3)
|
See Part I. Item 3 - Legal proceedings in our 2017 Form 10-K for more information on the Jay Peak matter.
|
(4)
|
See
Note 13
of the Notes to Condensed Consolidated Financial Statements in this Form 10-Q for more information related to the discrete impact of the Tax Act.
|
|
|
As of
|
||||||||||
$ in millions
|
|
December 31,
2017 |
|
September 30,
2017 |
|
December 31,
2016 |
||||||
RJBDP
|
|
|
|
|
|
|
||||||
RJ Bank
|
|
$
|
18,374
|
|
|
$
|
17,387
|
|
|
$
|
14,893
|
|
Third-party banks
|
|
20,836
|
|
|
20,704
|
|
|
25,456
|
|
|||
Sub-total RJBDP
|
|
39,210
|
|
|
38,091
|
|
|
40,349
|
|
|||
Money market
|
|
1,710
|
|
|
1,818
|
|
|
2,036
|
|
|||
Client interest program
|
|
3,334
|
|
|
3,101
|
|
|
3,696
|
|
|||
Total domestic client cash balances
|
|
$
|
44,254
|
|
|
$
|
43,010
|
|
|
$
|
46,081
|
|
|
|
Three months ended December 31,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
$ in thousands
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets segregated pursuant to regulations and other segregated assets
|
|
$
|
2,887,422
|
|
|
$
|
12,122
|
|
|
1.68
|
%
|
|
$
|
3,589,973
|
|
|
$
|
7,170
|
|
|
0.80
|
%
|
Securities loaned
|
|
361,749
|
|
|
3,058
|
|
|
3.38
|
%
|
|
533,000
|
|
|
2,732
|
|
|
2.05
|
%
|
||||
Trading instruments
|
|
648,088
|
|
|
5,138
|
|
|
3.17
|
%
|
|
604,749
|
|
|
5,006
|
|
|
3.31
|
%
|
||||
Available-for-sale securities
|
|
2,275,219
|
|
|
10,715
|
|
|
1.88
|
%
|
|
999,359
|
|
|
3,400
|
|
|
1.36
|
%
|
||||
Margin loans
|
|
2,484,016
|
|
|
24,095
|
|
|
3.88
|
%
|
|
2,427,230
|
|
|
19,981
|
|
|
3.29
|
%
|
||||
Bank loans, net of unearned income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
|
7,413,409
|
|
|
73,792
|
|
|
3.89
|
%
|
|
7,477,477
|
|
|
71,306
|
|
|
3.75
|
%
|
||||
CRE construction loans
|
|
140,472
|
|
|
1,723
|
|
|
4.80
|
%
|
|
132,506
|
|
|
1,505
|
|
|
4.44
|
%
|
||||
CRE loans
|
|
3,036,603
|
|
|
28,759
|
|
|
3.71
|
%
|
|
2,549,914
|
|
|
22,254
|
|
|
3.42
|
%
|
||||
Tax-exempt loans
|
|
1,039,814
|
|
|
6,706
|
|
|
2.58
|
%
|
|
808,160
|
|
|
5,246
|
|
|
2.60
|
%
|
||||
Residential mortgage loans
|
|
3,245,333
|
|
|
24,790
|
|
|
3.06
|
%
|
|
2,559,074
|
|
|
18,564
|
|
|
2.84
|
%
|
||||
SBL
|
|
2,471,054
|
|
|
23,240
|
|
|
3.68
|
%
|
|
1,951,644
|
|
|
15,389
|
|
|
3.09
|
%
|
||||
Loans held for sale
|
|
115,882
|
|
|
1,010
|
|
|
3.46
|
%
|
|
180,052
|
|
|
1,261
|
|
|
2.81
|
%
|
||||
Total bank loans, net
|
|
17,462,567
|
|
|
160,020
|
|
|
3.65
|
%
|
|
15,658,827
|
|
|
135,525
|
|
|
3.47
|
%
|
||||
Loans to financial advisors
|
|
869,326
|
|
|
3,502
|
|
|
1.61
|
%
|
|
833,760
|
|
|
3,308
|
|
|
1.59
|
%
|
||||
Corporate cash and all other
|
|
4,330,440
|
|
|
13,079
|
|
|
1.21
|
%
|
|
3,215,887
|
|
|
5,660
|
|
|
0.69
|
%
|
||||
Total interest-earning assets
|
|
$
|
31,318,827
|
|
|
$
|
231,729
|
|
|
2.96
|
%
|
|
$
|
27,862,785
|
|
|
$
|
182,782
|
|
|
2.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
|
|
$
|
323,503
|
|
|
$
|
1,272
|
|
|
1.56
|
%
|
|
$
|
303,243
|
|
|
$
|
1,135
|
|
|
1.48
|
%
|
Savings, money market and NOW accounts
|
|
17,820,706
|
|
|
6,237
|
|
|
0.15
|
%
|
|
14,411,122
|
|
|
1,648
|
|
|
0.05
|
%
|
||||
Securities borrowed
|
|
122,310
|
|
|
1,479
|
|
|
4.84
|
%
|
|
126,247
|
|
|
1,228
|
|
|
3.89
|
%
|
||||
Trading instruments sold but not yet purchased
|
|
258,095
|
|
|
1,706
|
|
|
2.64
|
%
|
|
266,206
|
|
|
1,328
|
|
|
2.00
|
%
|
||||
Brokerage client liabilities
|
|
4,442,992
|
|
|
2,529
|
|
|
0.23
|
%
|
|
4,919,792
|
|
|
676
|
|
|
0.05
|
%
|
||||
Other borrowings
|
|
1,031,298
|
|
|
5,865
|
|
|
2.26
|
%
|
|
768,178
|
|
|
3,719
|
|
|
1.94
|
%
|
||||
Senior notes
|
|
1,548,885
|
|
|
18,180
|
|
|
4.69
|
%
|
|
1,680,417
|
|
|
24,699
|
|
|
5.88
|
%
|
||||
Other
|
|
256,161
|
|
|
2,163
|
|
|
3.38
|
%
|
|
249,595
|
|
|
1,533
|
|
|
2.46
|
%
|
||||
Total interest-bearing liabilities
|
|
$
|
25,803,950
|
|
|
$
|
39,431
|
|
|
0.61
|
%
|
|
$
|
22,724,800
|
|
|
$
|
35,966
|
|
|
0.63
|
%
|
Net interest income
|
|
|
|
|
$
|
192,298
|
|
|
|
|
|
|
|
|
$
|
146,816
|
|
|
|
|
|
|
Three months ended December 31,
|
|||||||||
$ in thousands
|
|
2017
|
|
2016
|
|
% change
|
|||||
Revenues:
|
|
|
|
|
|
|
|||||
Securities commissions and fees:
|
|
|
|
|
|
|
|||||
Fee-based accounts
|
|
$
|
596,259
|
|
|
$
|
472,899
|
|
|
26
|
%
|
Mutual funds
|
|
163,147
|
|
|
158,590
|
|
|
3
|
%
|
||
Insurance and annuity products
|
|
110,789
|
|
|
95,351
|
|
|
16
|
%
|
||
Equity products
|
|
83,220
|
|
|
79,436
|
|
|
5
|
%
|
||
Fixed income products
|
|
28,337
|
|
|
28,952
|
|
|
(2
|
)%
|
||
New issue sales credits
|
|
9,302
|
|
|
17,991
|
|
|
(48
|
)%
|
||
Sub-total securities commissions and fees
|
|
991,054
|
|
|
853,219
|
|
|
16
|
%
|
||
Interest
|
|
43,476
|
|
|
33,614
|
|
|
29
|
%
|
||
Account and service fees:
|
|
|
|
|
|
|
|
||||
Mutual fund and annuity service fees
|
|
80,621
|
|
|
68,726
|
|
|
17
|
%
|
||
RJBDP fees - third-party banks
|
|
61,007
|
|
|
36,564
|
|
|
67
|
%
|
||
RJBDP fees - RJ Bank
|
|
21,258
|
|
|
11,653
|
|
|
82
|
%
|
||
Client account and service fees
|
|
22,754
|
|
|
24,697
|
|
|
(8
|
)%
|
||
Client transaction fees and other
|
|
7,745
|
|
|
6,786
|
|
|
14
|
%
|
||
Sub-total account and service fees
|
|
193,385
|
|
|
148,426
|
|
|
30
|
%
|
||
Other
|
|
10,125
|
|
|
8,057
|
|
|
26
|
%
|
||
Total revenues
|
|
1,238,040
|
|
|
1,043,316
|
|
|
19
|
%
|
||
Interest expense
|
|
(4,989
|
)
|
|
(3,227
|
)
|
|
55
|
%
|
||
Net revenues
|
|
1,233,051
|
|
|
1,040,089
|
|
|
19
|
%
|
||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
||
Sales commissions
|
|
736,459
|
|
|
634,512
|
|
|
16
|
%
|
||
Admin & incentive compensation and benefit costs
|
|
198,917
|
|
|
171,889
|
|
|
16
|
%
|
||
Communications and information processing
|
|
52,800
|
|
|
44,017
|
|
|
20
|
%
|
||
Occupancy and equipment costs
|
|
37,757
|
|
|
35,488
|
|
|
6
|
%
|
||
Business development
|
|
21,563
|
|
|
23,450
|
|
|
(8
|
)%
|
||
Jay Peak matter
|
|
—
|
|
|
30,000
|
|
|
(100
|
)%
|
||
Other
|
|
30,492
|
|
|
27,375
|
|
|
11
|
%
|
||
Total non-interest expenses
|
|
1,077,988
|
|
|
966,731
|
|
|
12
|
%
|
||
Pre-tax income
|
|
$
|
155,063
|
|
|
$
|
73,358
|
|
|
111
|
%
|
|
|
As of
|
|
% change from
|
||||||||||||||
$ in billions
|
|
December 31,
2017 |
|
September 30,
2017 |
|
December 31,
2016 |
|
September 30,
2017 |
|
December 31,
2016 |
||||||||
PCG assets under administration
|
|
$
|
692.1
|
|
|
$
|
659.5
|
|
|
$
|
585.6
|
|
|
5
|
%
|
|
18
|
%
|
PCG assets in fee-based accounts
|
|
$
|
316.7
|
|
|
$
|
294.5
|
|
|
$
|
240.2
|
|
|
8
|
%
|
|
32
|
%
|
|
December 31, 2017
|
|
September 30, 2017
|
|
December 31, 2016
|
|||
Employees
|
3,038
|
|
|
3,041
|
|
|
2,985
|
|
Independent Contractors
|
4,499
|
|
(1)
|
4,305
|
|
|
4,143
|
|
Total advisors
|
7,537
|
|
|
7,346
|
|
|
7,128
|
|
|
|
Three months ended December 31,
|
|||||||||
$ in thousands
|
|
2017
|
|
2016
|
|
% change
|
|||||
Revenues:
|
|
|
|
|
|
|
|||||
Securities commissions and fees:
|
|
|
|
|
|
|
|||||
Equity
|
|
$
|
53,371
|
|
|
$
|
64,319
|
|
|
(17
|
)%
|
Fixed income
|
|
65,201
|
|
|
75,374
|
|
|
(13
|
)%
|
||
Sub-total securities commissions and fees
|
|
118,572
|
|
|
139,693
|
|
|
(15
|
)%
|
||
Equity underwriting fees
|
|
8,956
|
|
|
14,509
|
|
|
(38
|
)%
|
||
Merger & acquisition and advisory fees
|
|
42,998
|
|
|
27,174
|
|
|
58
|
%
|
||
Fixed income investment banking
|
|
8,132
|
|
|
8,478
|
|
|
(4
|
)%
|
||
Tax credit funds syndication fees
|
|
4,817
|
|
|
11,126
|
|
|
(57
|
)%
|
||
Sub-total investment banking
|
|
64,903
|
|
|
61,287
|
|
|
6
|
%
|
||
Investment advisory fees
|
|
8,335
|
|
|
5,223
|
|
|
60
|
%
|
||
Net trading profit
|
|
19,230
|
|
|
19,319
|
|
|
—
|
|
||
Interest
|
|
7,325
|
|
|
6,474
|
|
|
13
|
%
|
||
Other
|
|
4,169
|
|
|
4,986
|
|
|
(16
|
)%
|
||
Total revenues
|
|
222,534
|
|
|
236,982
|
|
|
(6
|
)%
|
||
Interest expense
|
|
(5,869
|
)
|
|
(3,966
|
)
|
|
48
|
%
|
||
Net revenues
|
|
216,665
|
|
|
233,016
|
|
|
(7
|
)%
|
||
Non-interest expenses:
|
|
|
|
|
|
|
|
||||
Sales commissions
|
|
42,218
|
|
|
50,973
|
|
|
(17
|
)%
|
||
Admin & incentive compensation and benefit costs
|
|
114,322
|
|
|
102,867
|
|
|
11
|
%
|
||
Communications and information processing
|
|
17,834
|
|
|
17,647
|
|
|
1
|
%
|
||
Occupancy and equipment costs
|
|
8,384
|
|
|
8,455
|
|
|
(1
|
)%
|
||
Business development
|
|
10,155
|
|
|
9,602
|
|
|
6
|
%
|
||
Losses and non-interest expenses of real estate partnerships held by consolidated VIEs
|
|
2,666
|
|
|
1,796
|
|
|
48
|
%
|
||
Other
|
|
18,986
|
|
|
22,337
|
|
|
(15
|
)%
|
||
Total non-interest expenses
|
|
214,565
|
|
|
213,677
|
|
|
—
|
|
||
Income before taxes and including noncontrolling interests
|
|
2,100
|
|
|
19,339
|
|
|
(89
|
)%
|
||
Noncontrolling interests
|
|
(2,707
|
)
|
|
(2,105
|
)
|
|
29
|
%
|
||
Pre-tax income excluding noncontrolling interests
|
|
$
|
4,807
|
|
|
$
|
21,444
|
|
|
(78
|
)%
|
|
|
Three months ended December 31,
|
|||||||||
$ in thousands
|
|
2017
|
|
2016
|
|
% change
|
|||||
Revenues:
|
|
|
|
|
|
|
|||||
Investment advisory and related administrative fees:
|
|
|
|
|
|
|
|||||
Managed programs
|
|
$
|
103,845
|
|
|
$
|
76,308
|
|
|
36
|
%
|
Non-discretionary asset-based administration
|
|
27,068
|
|
|
21,194
|
|
|
28
|
%
|
||
Sub-total investment advisory and related administrative fees
|
|
130,913
|
|
|
97,502
|
|
|
34
|
%
|
||
Account and service fees and other
|
|
19,698
|
|
|
16,594
|
|
|
19
|
%
|
||
Total revenues
|
|
150,611
|
|
|
114,096
|
|
|
32
|
%
|
||
Interest expense
|
|
(11
|
)
|
|
(14
|
)
|
|
(21
|
)%
|
||
Net revenues
|
|
150,600
|
|
|
114,082
|
|
|
32
|
%
|
||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
||
Compensation and benefits
|
|
36,597
|
|
|
27,682
|
|
|
32
|
%
|
||
Communications and information processing
|
|
8,444
|
|
|
6,671
|
|
|
27
|
%
|
||
Occupancy and equipment costs
|
|
1,424
|
|
|
1,160
|
|
|
23
|
%
|
||
Business development
|
|
2,647
|
|
|
2,313
|
|
|
14
|
%
|
||
Investment sub-advisory fees
|
|
21,694
|
|
|
17,384
|
|
|
25
|
%
|
||
Other
|
|
19,527
|
|
|
15,756
|
|
|
24
|
%
|
||
Total non-interest expenses
|
|
90,333
|
|
|
70,966
|
|
|
27
|
%
|
||
Income before taxes and including noncontrolling interests
|
|
60,267
|
|
|
43,116
|
|
|
40
|
%
|
||
Noncontrolling interests
|
|
2,868
|
|
|
1,207
|
|
|
138
|
%
|
||
Pre-tax income excluding noncontrolling interests
|
|
$
|
57,399
|
|
|
$
|
41,909
|
|
|
37
|
%
|
$ in millions
|
|
December 31, 2017
|
|
September 30, 2017
|
|
December 31,
2016 |
||||||
Asset management services division of RJ&A (“AMS”)
|
|
$
|
74,607
|
|
|
$
|
69,962
|
|
|
$
|
56,524
|
|
Carillon Tower Advisers and affiliates (“Carillon Tower”)
|
|
61,245
|
|
|
31,831
|
|
|
27,933
|
|
|||
Sub-total financial assets under management
|
|
135,852
|
|
|
101,793
|
|
|
84,457
|
|
|||
Less: Assets managed for affiliated entities
|
|
(5,542
|
)
|
|
(5,397
|
)
|
|
(4,805
|
)
|
|||
Total financial assets under management
|
|
$
|
130,310
|
|
|
$
|
96,396
|
|
|
$
|
79,652
|
|
$ in millions
|
|
December 31, 2017
|
|
September 30, 2017
|
|
December 31,
2016 |
||||||
Equity
|
|
$
|
57,971
|
|
|
$
|
48,936
|
|
|
$
|
40,959
|
|
Fixed
|
|
33,806
|
|
|
11,814
|
|
|
10,920
|
|
|||
Balanced
|
|
44,075
|
|
|
41,043
|
|
|
32,578
|
|
|||
Total financial assets under management
|
|
$
|
135,852
|
|
|
$
|
101,793
|
|
|
$
|
84,457
|
|
|
|
Three months ended December 31,
|
||||||
$ in millions
|
|
2017
|
|
2016
|
||||
Financial assets under management at beginning of period
|
|
$
|
101,793
|
|
|
$
|
81,729
|
|
Carillon Tower - net inflows:
|
|
|
|
|
||||
Scout group acquisition
|
|
27,087
|
|
|
—
|
|
||
Other
|
|
720
|
|
|
88
|
|
||
AMS - net inflows
|
|
2,178
|
|
|
1,896
|
|
||
Net market appreciation in asset values
|
|
4,074
|
|
|
744
|
|
||
Financial assets under management at end of period
|
|
$
|
135,852
|
|
|
$
|
84,457
|
|
|
|
Three months ended December 31,
|
|||||||||
$ in thousands
|
|
2017
|
|
2016
|
|
% change
|
|||||
Revenues:
|
|
|
|
|
|
|
|||||
Interest income
|
|
$
|
175,995
|
|
|
$
|
140,774
|
|
|
25
|
%
|
Interest expense
|
|
(12,956
|
)
|
|
(6,502
|
)
|
|
99
|
%
|
||
Net interest income
|
|
163,039
|
|
|
134,272
|
|
|
21
|
%
|
||
Other income
|
|
2,146
|
|
|
3,743
|
|
|
(43
|
)%
|
||
Net revenues
|
|
165,185
|
|
|
138,015
|
|
|
20
|
%
|
||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
||
Compensation and benefits
|
|
8,876
|
|
|
7,724
|
|
|
15
|
%
|
||
Communications and information processing
|
|
2,585
|
|
|
1,867
|
|
|
38
|
%
|
||
Occupancy and equipment costs
|
|
362
|
|
|
351
|
|
|
3
|
%
|
||
Loan loss provision/(benefit)
|
|
1,016
|
|
|
(1,040
|
)
|
|
NM
|
|
||
FDIC insurance premiums
|
|
4,834
|
|
|
4,260
|
|
|
13
|
%
|
||
Affiliate deposit account servicing fees
|
|
21,258
|
|
|
11,653
|
|
|
82
|
%
|
||
Other
|
|
12,099
|
|
|
9,079
|
|
|
33
|
%
|
||
Total non-interest expenses
|
|
51,030
|
|
|
33,894
|
|
|
51
|
%
|
||
Pre-tax income
|
|
$
|
114,155
|
|
|
$
|
104,121
|
|
|
10
|
%
|
|
|
Three months ended December 31,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
$ in thousands
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
||||||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash
|
|
$
|
1,354,464
|
|
|
$
|
4,432
|
|
|
1.30
|
%
|
|
$
|
905,877
|
|
|
$
|
1,244
|
|
|
0.54
|
%
|
Available-for-sale securities
|
|
2,168,610
|
|
|
10,143
|
|
|
1.87
|
%
|
|
872,859
|
|
|
3,077
|
|
|
1.41
|
%
|
||||
Bank loans, net of unearned income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
|
7,413,409
|
|
|
73,792
|
|
|
3.89
|
%
|
|
7,477,477
|
|
|
71,306
|
|
|
3.75
|
%
|
||||
CRE construction loans
|
|
140,472
|
|
|
1,723
|
|
|
4.80
|
%
|
|
132,506
|
|
|
1,505
|
|
|
4.44
|
%
|
||||
CRE loans
|
|
3,036,603
|
|
|
28,759
|
|
|
3.71
|
%
|
|
2,549,914
|
|
|
22,254
|
|
|
3.42
|
%
|
||||
Tax-exempt loans
|
|
1,039,814
|
|
|
6,706
|
|
|
3.42
|
%
|
|
808,160
|
|
|
5,246
|
|
|
3.99
|
%
|
||||
Residential mortgage loans
|
|
3,245,333
|
|
|
24,790
|
|
|
3.06
|
%
|
|
2,559,074
|
|
|
18,564
|
|
|
2.84
|
%
|
||||
SBL
|
|
2,471,054
|
|
|
23,240
|
|
|
3.68
|
%
|
|
1,951,644
|
|
|
15,389
|
|
|
3.09
|
%
|
||||
Loans held for sale
|
|
115,882
|
|
|
1,010
|
|
|
3.46
|
%
|
|
180,052
|
|
|
1,261
|
|
|
2.81
|
%
|
||||
Total loans, net
|
|
17,462,567
|
|
|
160,020
|
|
|
3.65
|
%
|
|
15,658,827
|
|
|
135,525
|
|
|
3.47
|
%
|
||||
FHLB stock, FRB stock, and other
|
|
130,817
|
|
|
1,400
|
|
|
4.25
|
%
|
|
171,818
|
|
|
928
|
|
|
2.14
|
%
|
||||
Total interest-earning banking assets
|
|
21,116,458
|
|
|
$
|
175,995
|
|
|
3.32
|
%
|
|
17,609,381
|
|
|
$
|
140,774
|
|
|
3.21
|
%
|
||
Non-interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized loss on available-for-sale securities
|
|
(15,508
|
)
|
|
|
|
|
|
|
|
(5,138
|
)
|
|
|
|
|
|
|
||||
Allowance for loan losses
|
|
(190,503
|
)
|
|
|
|
|
|
|
|
(196,895
|
)
|
|
|
|
|
|
|
||||
Other assets
|
|
402,839
|
|
|
|
|
|
|
|
|
358,673
|
|
|
|
|
|
|
|
||||
Total non-interest-earning banking assets
|
|
196,828
|
|
|
|
|
|
|
|
|
156,640
|
|
|
|
|
|
|
|
||||
Total banking assets
|
|
$
|
21,313,286
|
|
|
|
|
|
|
|
|
$
|
17,766,021
|
|
|
|
|
|
|
|
||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Certificates of deposit
|
|
$
|
323,503
|
|
|
$
|
1,272
|
|
|
1.56
|
%
|
|
$
|
303,243
|
|
|
$
|
1,135
|
|
|
1.48
|
%
|
Savings, money market, and NOW accounts
|
|
18,065,017
|
|
|
6,945
|
|
|
0.15
|
%
|
|
14,888,763
|
|
|
2,156
|
|
|
0.06
|
%
|
||||
FHLB advances and other
|
|
989,239
|
|
|
4,739
|
|
|
1.87
|
%
|
|
796,174
|
|
|
3,211
|
|
|
1.58
|
%
|
||||
Total interest-bearing banking liabilities
|
|
19,377,759
|
|
|
$
|
12,956
|
|
|
0.26
|
%
|
|
15,988,180
|
|
|
$
|
6,502
|
|
|
0.16
|
%
|
||
Non-interest-bearing banking liabilities
|
|
93,462
|
|
|
|
|
|
|
|
|
86,936
|
|
|
|
|
|
|
|
||||
Total banking liabilities
|
|
19,471,221
|
|
|
|
|
|
|
|
|
16,075,116
|
|
|
|
|
|
|
|
||||
Total banking shareholder’s equity
|
|
1,842,065
|
|
|
|
|
|
|
|
|
1,690,905
|
|
|
|
|
|
|
|
||||
Total banking liabilities and shareholder’s equity
|
|
$
|
21,313,286
|
|
|
|
|
|
|
|
|
$
|
17,766,021
|
|
|
|
|
|
|
|
||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
|
$
|
1,738,699
|
|
|
$
|
163,039
|
|
|
|
|
$
|
1,621,201
|
|
|
$
|
134,272
|
|
|
|
||
Bank net interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Spread
|
|
|
|
|
|
|
|
3.06
|
%
|
|
|
|
|
|
|
|
3.05
|
%
|
||||
Margin (net yield on interest-earning banking assets)
|
|
|
|
|
|
|
|
3.08
|
%
|
|
|
|
|
|
|
|
3.06
|
%
|
||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
|
|
|
|
|
|
|
108.97
|
%
|
|
|
|
|
|
|
110.14
|
%
|
|
|
Three months ended December 31,
|
||||||||||
|
|
2017 compared to 2016
|
||||||||||
|
|
Increase/(decrease) due to
|
||||||||||
$ in thousands
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
Interest revenue:
|
|
|
|
|
|
|
||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
||||||
Cash
|
|
$
|
616
|
|
|
$
|
2,572
|
|
|
$
|
3,188
|
|
Available-for-sale securities
|
|
4,131
|
|
|
2,935
|
|
|
7,066
|
|
|||
Bank loans, net of unearned income:
|
|
|
|
|
|
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|||||
C&I loans
|
|
(611
|
)
|
|
3,097
|
|
|
2,486
|
|
|||
CRE construction loans
|
|
90
|
|
|
128
|
|
|
218
|
|
|||
CRE loans
|
|
4,247
|
|
|
2,258
|
|
|
6,505
|
|
|||
Tax-exempt loans
|
|
1,503
|
|
|
(43
|
)
|
|
1,460
|
|
|||
Residential mortgage loans
|
|
4,978
|
|
|
1,248
|
|
|
6,226
|
|
|||
SBL
|
|
4,096
|
|
|
3,755
|
|
|
7,851
|
|
|||
Loans held for sale
|
|
(449
|
)
|
|
198
|
|
|
(251
|
)
|
|||
Total bank loans, net
|
|
13,854
|
|
|
10,641
|
|
|
24,495
|
|
|||
FHLB stock, FRB stock, and other
|
|
(221
|
)
|
|
693
|
|
|
472
|
|
|||
Total interest-earning banking assets
|
|
18,380
|
|
|
16,841
|
|
|
35,221
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|||
Certificates of deposit
|
|
76
|
|
|
61
|
|
|
137
|
|
|||
Money market, savings and NOW accounts
|
|
460
|
|
|
4,329
|
|
|
4,789
|
|
|||
FHLB advances and other
|
|
779
|
|
|
749
|
|
|
1,528
|
|
|||
Total interest-bearing liabilities
|
|
1,315
|
|
|
5,139
|
|
|
6,454
|
|
|||
Change in net interest income
|
|
$
|
17,065
|
|
|
$
|
11,702
|
|
|
$
|
28,767
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Net loan (charge-offs)/recoveries:
|
|
|
|
|
||||
C&I loans
|
|
$
|
(603
|
)
|
|
$
|
(3,389
|
)
|
CRE loans
|
|
—
|
|
|
5,013
|
|
||
Residential mortgage loans
|
|
509
|
|
|
(22
|
)
|
||
Total
|
|
$
|
(94
|
)
|
|
$
|
1,602
|
|
$ in thousands
|
|
December 31,
2017 |
|
September 30,
2017 |
||||
Nonperforming assets:
|
|
|
|
|
|
|
||
Nonperforming loans:
|
|
|
|
|
|
|
||
C&I loans
|
|
$
|
4,843
|
|
|
$
|
5,221
|
|
Residential mortgage loans:
|
|
|
|
|
||||
Residential first mortgage
|
|
32,364
|
|
|
33,718
|
|
||
Home equity loans/lines
|
|
126
|
|
|
31
|
|
||
Total nonperforming loans
|
|
37,333
|
|
|
38,970
|
|
||
Other real estate owned:
|
|
|
|
|
|
|
||
Residential first mortgage
|
|
4,299
|
|
|
4,729
|
|
||
Total other real estate owned
|
|
4,299
|
|
|
4,729
|
|
||
Total nonperforming assets
|
|
$
|
41,632
|
|
|
$
|
43,699
|
|
Total nonperforming assets as a % of RJ Bank total assets
|
|
0.19
|
%
|
|
0.21
|
%
|
||
Total loans:
|
|
|
|
|
||||
Loans held for sale, net
|
|
$
|
189,862
|
|
|
$
|
70,316
|
|
Loans held for investment:
|
|
|
|
|
|
|||
C&I loans
|
|
7,490,219
|
|
|
7,385,910
|
|
||
CRE construction loans
|
|
164,847
|
|
|
112,681
|
|
||
CRE loans
|
|
3,136,101
|
|
|
3,106,290
|
|
||
Tax-exempt loans
|
|
1,136,468
|
|
|
1,017,791
|
|
||
Residential mortgage loans
|
|
3,270,780
|
|
|
3,148,730
|
|
||
SBL
|
|
2,530,521
|
|
|
2,386,697
|
|
||
Net unearned income and deferred expenses
|
|
(30,231
|
)
|
|
(31,178
|
)
|
||
Total loans held for investment
|
|
17,698,705
|
|
|
17,126,921
|
|
||
Total loans
|
|
$
|
17,888,567
|
|
|
$
|
17,197,237
|
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||
$ in thousands
|
|
Allowance
|
|
Loan category as a % of total loans receivable
|
|
Allowance
|
|
Loan category as a % of total loans receivable
|
||||||
Loans held for sale
|
|
$
|
—
|
|
|
1
|
%
|
|
$
|
—
|
|
|
—
|
|
C&I loans
|
|
121,569
|
|
|
42
|
%
|
|
119,901
|
|
|
43
|
%
|
||
CRE construction loans
|
|
2,107
|
|
|
1
|
%
|
|
1,421
|
|
|
1
|
%
|
||
CRE loans
|
|
40,616
|
|
|
18
|
%
|
|
41,749
|
|
|
18
|
%
|
||
Tax-exempt loans
|
|
6,918
|
|
|
6
|
%
|
|
6,381
|
|
|
6
|
%
|
||
Residential mortgage loans
|
|
15,501
|
|
|
18
|
%
|
|
16,691
|
|
|
18
|
%
|
||
SBL
|
|
4,558
|
|
|
14
|
%
|
|
4,299
|
|
|
14
|
%
|
||
Total
|
|
$
|
191,269
|
|
|
100
|
%
|
|
$
|
190,442
|
|
|
100
|
%
|
|
|
Three months ended December 31,
|
|||||||||
$ in thousands
|
|
2017
|
|
2016
|
|
% change
|
|||||
Revenues:
|
|
|
|
|
|
|
|||||
Interest income
|
|
$
|
8,289
|
|
|
$
|
4,688
|
|
|
77
|
%
|
Investment advisory fees
|
|
397
|
|
|
484
|
|
|
(18
|
)%
|
||
Other
|
|
7,697
|
|
|
10,287
|
|
|
(25
|
)%
|
||
Total revenues
|
|
16,383
|
|
|
15,459
|
|
|
6
|
%
|
||
Interest expense
|
|
(19,303
|
)
|
|
(25,102
|
)
|
|
(23
|
)%
|
||
Net revenues
|
|
(2,920
|
)
|
|
(9,643
|
)
|
|
70
|
%
|
||
|
|
|
|
|
|
|
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
||||
Compensation and other
|
|
13,055
|
|
|
10,109
|
|
|
29
|
%
|
||
Acquisition-related expenses
|
|
3,927
|
|
|
12,666
|
|
|
(69
|
)%
|
||
Total non-interest expenses
|
|
16,982
|
|
|
22,775
|
|
|
(25
|
)%
|
||
Loss before taxes and including noncontrolling interests
|
|
(19,902
|
)
|
|
(32,418
|
)
|
|
39
|
%
|
||
Noncontrolling interests
|
|
279
|
|
|
2,035
|
|
|
86
|
%
|
||
Pre-tax loss excluding noncontrolling interests
|
|
$
|
(20,181
|
)
|
|
$
|
(34,453
|
)
|
|
41
|
%
|
|
|
For the three months ended December 31,
|
||
|
|
2017
|
|
2016
|
Return on average assets
|
|
1.3%
|
|
1.9%
|
Return on average equity
|
|
8.4%
|
|
11.7%
|
Average equity to average assets
|
|
15.9%
|
|
15.8%
|
Dividend payout ratio
|
|
31.3%
|
|
22.0%
|
•
|
An increase of
$467 million
in brokerage client payables and other accounts payable, mostly due to increased client cash balances in brokerage accounts.
|
•
|
A decrease in our brokerage client receivables and other receivables of
$124 million
, including a decrease in margin loans.
|
•
|
A decrease of
$104 million
in securities purchased under agreements to resell, net of securities sold under agreements to repurchase.
|
•
|
A decrease of
$266 million
in accrued compensation, commissions and benefits, primarily resulting from the annual payment of certain incentive awards.
|
•
|
A decrease in securities loaned, net of securities borrowed of
$140 million
.
|
•
|
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale used
$108 million
.
|
•
|
An increase of
$97 million
in assets segregated pursuant to regulations and other segregated assets, primarily resulting from the increases in client cash balances.
|
•
|
Net trading instruments increased
$47 million
.
|
•
|
A net increase in RJ Bank loans used
$624 million
.
|
•
|
Purchases of available-for-sale securities held at RJ Bank, net of proceeds from maturations, repayments and redemptions within the portfolio, used
$225 million
.
|
•
|
We used
$159 million
, net of cash acquired, for our acquisition of the Scout Group.
|
•
|
We used
$36 million
to fund property investments, primarily software and computer equipment.
|
•
|
An increase in RJ Bank deposit balances of
$993 million
.
|
•
|
Net proceeds of
$300 million
from borrowings on the RJF Credit Facility.
|
•
|
Net repayments of
$280 million
of other lines of credit.
|
•
|
Payment of dividends to our shareholders of
$32 million
.
|
$ in thousands
|
|
December 31, 2017
|
||
RJF
|
|
$
|
330,258
|
|
RJ&A
|
|
1,506,746
|
|
|
RJ Bank
|
|
1,276,703
|
|
|
RJ Ltd.
|
|
440,736
|
|
|
RJFS
|
|
125,269
|
|
|
Carillon Tower Advisers
|
|
65,033
|
|
|
Other subsidiaries
|
|
152,784
|
|
|
Total cash and cash equivalents
|
|
$
|
3,897,529
|
|
|
|
As of December 31, 2017
|
|||||||||||||
$ in thousands
|
|
RJ&A
|
|
RJF
|
|
Total
|
|
Total number of arrangements
|
|||||||
Financing arrangement:
|
|
|
|
|
|
|
|
|
|||||||
Committed secured
|
|
$
|
200,000
|
|
|
$
|
—
|
|
|
$
|
200,000
|
|
|
2
|
|
Committed unsecured
|
|
—
|
|
|
300,000
|
|
|
300,000
|
|
|
1
|
|
|||
Total committed financing arrangements
|
|
$
|
200,000
|
|
|
$
|
300,000
|
|
|
$
|
500,000
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|||||||
Outstanding borrowing amount:
|
|
|
|
|
|
|
|
|
|||||||
Committed secured
|
|
$
|
70,000
|
|
|
$
|
—
|
|
|
$
|
70,000
|
|
|
|
|
Committed unsecured
|
|
—
|
|
|
300,000
|
|
|
300,000
|
|
|
|
||||
Total outstanding borrowing amount
|
|
$
|
70,000
|
|
|
$
|
300,000
|
|
|
$
|
370,000
|
|
|
|
$ in thousands
|
|
As of December 31, 2017
|
||
Outstanding borrowing amount:
|
|
|
||
Uncommitted secured
|
|
$
|
339,036
|
|
Uncommitted unsecured
|
|
150,000
|
|
|
Total outstanding borrowing amount
|
|
$
|
489,036
|
|
|
|
Repurchase transactions
|
|
Reverse repurchase transactions
|
||||||||||||||||||||
For the quarter ended:
($ in thousands)
|
|
Average daily
balance
outstanding
|
|
Maximum month-end
balance outstanding
during the quarter
|
|
End of period
balance
outstanding
|
|
Average daily
balance
outstanding
|
|
Maximum month-end
balance outstanding
during the quarter
|
|
End of period
balance
outstanding
|
||||||||||||
December 31, 2017
|
|
$
|
218,690
|
|
|
$
|
229,036
|
|
|
$
|
229,036
|
|
|
$
|
443,391
|
|
|
$
|
506,711
|
|
|
$
|
307,742
|
|
September 30, 2017
|
|
241,365
|
|
|
247,048
|
|
|
220,942
|
|
|
463,618
|
|
|
503,462
|
|
|
404,462
|
|
||||||
June 30, 2017
|
|
231,378
|
|
|
226,972
|
|
|
226,972
|
|
|
479,653
|
|
|
540,823
|
|
|
483,820
|
|
||||||
March 31, 2017
|
|
204,623
|
|
|
222,476
|
|
|
222,476
|
|
|
410,678
|
|
|
535,224
|
|
|
535,224
|
|
||||||
December 31, 2016
|
|
219,095
|
|
|
241,773
|
|
|
203,378
|
|
|
424,548
|
|
|
445,646
|
|
|
358,493
|
|
Rating Agency
|
|
Rating
|
|
Outlook
|
Standard & Poor’s Ratings Services
|
|
BBB+
|
|
Stable
|
Moody’s Investors Services
|
|
Baa1
|
|
Stable
|
|
|
Three months ended December 31, 2017
|
|
Period end VaR
|
|
Daily average VaR
|
||||||||||||||||||||||
$ in thousands
|
|
High
|
|
Low
|
|
December 31,
2017 |
|
September 30,
2017 |
|
December 31,
2017 |
|
September 30,
2017 |
|
December 31,
2016 |
||||||||||||||
Daily VaR
|
|
$
|
2,256
|
|
|
$
|
848
|
|
|
$
|
848
|
|
|
$
|
1,427
|
|
|
$
|
1,601
|
|
|
$
|
1,827
|
|
|
$
|
1,670
|
|
Instantaneous changes in rate
|
|
Net interest income
($ in thousands)
|
|
Projected change in
net interest income
|
+200
|
|
$734,185
|
|
(0.53)%
|
+100
|
|
$765,382
|
|
3.69%
|
0
|
|
$738,110
|
|
—
|
-100
|
|
$599,527
|
|
(18.78)%
|
|
|
Due in
|
||||||||||||||
$ in thousands
|
|
One year or less
|
|
> One year – five years
|
|
> 5 years
|
|
Total
|
||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
C&I loans
|
|
$
|
152,551
|
|
|
$
|
3,826,227
|
|
|
$
|
3,511,441
|
|
|
$
|
7,490,219
|
|
CRE construction loans
|
|
11,612
|
|
|
153,235
|
|
|
—
|
|
|
164,847
|
|
||||
CRE loans
|
|
509,914
|
|
|
2,014,252
|
|
|
611,935
|
|
|
3,136,101
|
|
||||
Tax-exempt loans
|
|
—
|
|
|
22,630
|
|
|
1,113,838
|
|
|
1,136,468
|
|
||||
Residential mortgage loans
|
|
1,016
|
|
|
2,739
|
|
|
3,267,025
|
|
|
3,270,780
|
|
||||
SBL
|
|
2,527,003
|
|
|
3,518
|
|
|
—
|
|
|
2,530,521
|
|
||||
Total loans held for investment
|
|
3,202,096
|
|
|
6,022,601
|
|
|
8,504,239
|
|
|
17,728,936
|
|
||||
Loans held for sale
|
|
—
|
|
|
17,098
|
|
|
161,592
|
|
|
178,690
|
|
||||
Total loans
|
|
$
|
3,202,096
|
|
|
$
|
6,039,699
|
|
|
$
|
8,665,831
|
|
|
$
|
17,907,626
|
|
|
|
Interest rate type
|
||||||||||
$ in thousands
|
|
Fixed
|
|
Adjustable
|
|
Total
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|||
C&I loans
|
|
$
|
1,700
|
|
|
$
|
7,335,968
|
|
|
$
|
7,337,668
|
|
CRE construction loans
|
|
4,588
|
|
|
148,647
|
|
|
153,235
|
|
|||
CRE loans
|
|
43,732
|
|
|
2,582,455
|
|
|
2,626,187
|
|
|||
Tax-exempt loans
|
|
1,104,568
|
|
|
31,900
|
|
|
1,136,468
|
|
|||
Residential mortgage loans
|
|
230,142
|
|
|
3,039,622
|
|
|
3,269,764
|
|
|||
SBL
|
|
3,518
|
|
|
—
|
|
|
3,518
|
|
|||
Total loans held for investment
|
|
1,388,248
|
|
|
13,138,592
|
|
|
14,526,840
|
|
|||
Loans held for sale
|
|
5,650
|
|
|
173,040
|
|
|
178,690
|
|
|||
Total loans
|
|
$
|
1,393,898
|
|
|
$
|
13,311,632
|
|
|
$
|
14,705,530
|
|
|
|
Three months ended December 31,
|
||||||
$ in thousands
|
|
2017
|
|
2016
|
||||
Allowance for loan losses, beginning of year
|
|
$
|
190,442
|
|
|
$
|
197,378
|
|
Provision for loan losses
|
|
1,016
|
|
|
(1,040
|
)
|
||
Charge-offs:
|
|
|
|
|
|
|||
C&I loans
|
|
(603
|
)
|
|
(3,389
|
)
|
||
Residential mortgage loans
|
|
(95
|
)
|
|
(87
|
)
|
||
Total charge-offs
|
|
(698
|
)
|
|
(3,476
|
)
|
||
Recoveries:
|
|
|
|
|
|
|
||
CRE loans
|
|
—
|
|
|
5,013
|
|
||
Residential mortgage loans
|
|
604
|
|
|
65
|
|
||
Total recoveries
|
|
604
|
|
|
5,078
|
|
||
Net (charge-offs)/recoveries
|
|
(94
|
)
|
|
1,602
|
|
||
Foreign exchange translation adjustment
|
|
(95
|
)
|
|
(260
|
)
|
||
Allowance for loan losses, end of period
|
|
$
|
191,269
|
|
|
$
|
197,680
|
|
Allowance for loan losses to bank loans outstanding
|
|
1.08
|
%
|
|
1.25
|
%
|
|
|
Three months ended December 31,
|
||||||||||||
|
|
2017
|
|
2016
|
||||||||||
$ in thousands
|
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
||||||
C&I loans
|
|
$
|
(603
|
)
|
|
0.03
|
%
|
|
$
|
(3,389
|
)
|
|
0.18
|
%
|
CRE loans
|
|
—
|
|
|
—
|
|
|
5,013
|
|
|
0.79
|
%
|
||
Residential mortgage loans
|
|
509
|
|
|
0.06
|
%
|
|
(22
|
)
|
|
—
|
|
||
Total
|
|
$
|
(94
|
)
|
|
—
|
|
|
$
|
1,602
|
|
|
0.04
|
%
|
|
|
December 31, 2017
|
|
September 30, 2017
|
||||||||||||
$ in thousands
|
|
Nonperforming
loan balance
|
|
Allowance for
loan losses
balance
|
|
Nonperforming
loan balance
|
|
Allowance for
loan losses
balance
|
||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
C&I loans
|
|
$
|
4,843
|
|
|
$
|
(121,569
|
)
|
|
$
|
5,221
|
|
|
$
|
(119,901
|
)
|
CRE construction loans
|
|
—
|
|
|
(2,107
|
)
|
|
—
|
|
|
(1,421
|
)
|
||||
CRE loans
|
|
—
|
|
|
(40,616
|
)
|
|
—
|
|
|
(41,749
|
)
|
||||
Tax-exempt loans
|
|
—
|
|
|
(6,918
|
)
|
|
—
|
|
|
(6,381
|
)
|
||||
Residential mortgage loans
|
|
32,490
|
|
|
(15,501
|
)
|
|
33,749
|
|
|
(16,691
|
)
|
||||
SBL
|
|
—
|
|
|
(4,558
|
)
|
|
—
|
|
|
(4,299
|
)
|
||||
Total
|
|
$
|
37,333
|
|
|
$
|
(191,269
|
)
|
|
$
|
38,970
|
|
|
$
|
(190,442
|
)
|
Total nonperforming loans as a % of RJ Bank total loans
|
|
0.21
|
%
|
|
|
|
0.23
|
%
|
|
|
|
|
Amount of delinquent residential loans
|
|
Delinquent residential loans as a percentage of outstanding loan balances
|
|||||||||||||||||
$ in thousands
|
|
30-89 days
|
|
90 days or more
|
|
Total
|
|
30-89 days
|
|
90 days or more
|
|
Total
|
|||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
First mortgage loans
|
|
$
|
8,203
|
|
|
$
|
19,164
|
|
|
$
|
27,367
|
|
|
0.25
|
%
|
|
0.59
|
%
|
|
0.84
|
%
|
Home equity loans/lines
|
|
75
|
|
|
115
|
|
|
190
|
|
|
0.27
|
%
|
|
0.41
|
%
|
|
0.68
|
%
|
|||
Total residential mortgage loans
|
|
$
|
8,278
|
|
|
$
|
19,279
|
|
|
$
|
27,557
|
|
|
0.25
|
%
|
|
0.59
|
%
|
|
0.84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
First mortgage loans
|
|
$
|
3,061
|
|
|
$
|
19,823
|
|
|
$
|
22,884
|
|
|
0.10
|
%
|
|
0.63
|
%
|
|
0.73
|
%
|
Home equity loans/lines
|
|
248
|
|
|
18
|
|
|
266
|
|
|
0.91
|
%
|
|
0.07
|
%
|
|
0.98
|
%
|
|||
Total residential mortgage loans
|
|
$
|
3,309
|
|
|
$
|
19,841
|
|
|
$
|
23,150
|
|
|
0.10
|
%
|
|
0.63
|
%
|
|
0.73
|
%
|
December 31, 2017
|
|
September 30, 2017
|
||||||
|
Loans outstanding as a % of RJ Bank total residential mortgage loans
|
|
Loans outstanding as a % of RJ Bank total loans
|
|
|
Loans outstanding as a % of RJ Bank total residential mortgage loans
|
|
Loans outstanding as a % of RJ Bank total loans
|
CA
|
24.9%
|
|
4.6%
|
|
CA
|
23.8%
|
|
4.4%
|
FL
|
18.2%
|
|
3.4%
|
|
FL
|
18.9%
|
|
3.5%
|
TX
|
7.6%
|
|
1.4%
|
|
TX
|
7.8%
|
|
1.4%
|
NY
|
6.9%
|
|
1.3%
|
|
NY
|
6.8%
|
|
1.3%
|
CO
|
3.5%
|
|
0.6%
|
|
CO
|
3.4%
|
|
0.6%
|
|
December 31, 2017
|
|
September 30, 2017
|
Residential first mortgage loan weighted-average LTV/FICO
|
65%/758
|
|
65%/758
|
December 31, 2017
|
|
September 30, 2017
|
||||||
|
Loans outstanding as a % of RJ Bank total corporate loans
|
|
Loans outstanding as a % of RJ Bank total loans
|
|
|
Loans outstanding as a % of RJ Bank total corporate loans
|
|
Loans outstanding as a % of RJ Bank total loans
|
Power & infrastructure
|
5.6%
|
|
3.8%
|
|
Office (real estate)
|
5.9%
|
|
4.0%
|
Hospitality
|
4.9%
|
|
3.3%
|
|
Retail real estate
|
5.3%
|
|
3.6%
|
Retail real estate
|
4.9%
|
|
3.3%
|
|
Power & infrastructure
|
5.3%
|
|
3.6%
|
Consumer products and services
|
4.7%
|
|
3.2%
|
|
Consumer products and services
|
5.2%
|
|
3.5%
|
Office (real estate)
|
4.5%
|
|
3.0%
|
|
Hospitality
|
4.7%
|
|
3.2%
|
ITEM 2.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
Total number of shares
purchased
|
|
Average price
per share
|
|
Number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar value (in thousands) at each month-end, of securities that may yet be purchased under the plans or programs
|
||||||
|
|
|
|
|
|
|
|
||||||
October 1, 2017 – October 31, 2017
|
8,493
|
|
|
$
|
85.25
|
|
|
—
|
|
|
$
|
135,671
|
|
November 1, 2017 – November 30, 2017
|
18,539
|
|
|
$
|
85.32
|
|
|
—
|
|
|
$
|
135,671
|
|
December 1, 2017 – December 31, 2017
|
205,504
|
|
|
$
|
87.32
|
|
|
—
|
|
|
$
|
135,671
|
|
First quarter
|
232,536
|
|
|
$
|
87.08
|
|
|
—
|
|
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
Exhibit Number
|
|
Description
|
3.1
|
|
|
3.2
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
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
|
|
|
31.1
|
|
|
31.2
|
|
|
32
|
|
|
101.INS
|
|
XBRL Instance Document.
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
RAYMOND JAMES FINANCIAL, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
Date:
|
February 8, 2018
|
|
/s/ Paul C. Reilly
|
|
|
|
Paul C. Reilly
|
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
Date:
|
February 8, 2018
|
|
/s/ Jeffrey P. Julien
|
|
|
|
Jeffrey P. Julien
|
|
|
|
Executive Vice President - Finance Chief Financial Officer and Treasurer
|
•
|
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 Restricted Period will expire.
|
•
|
In the event of the Grantee’s Retirement, 100% of the unvested Units subject to the Award shall vest immediately prior to the Grantee’s Retirement, provided that (i) Shares shall not be issuable for such accelerated Units (and any dividend
|
o
|
discloses the list of the Company’s or a Related Entity’s customers or any part thereof to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever; or
|
o
|
discloses to any person, firm, corporation, association, or other entity any information regarding the Company’s or a Related Entity’s general business practices or procedures, methods of sale, list of products, personnel information and any other valuable confidential business or professional information unique to the Company’s or a Related Entity’s business; or
|
o
|
owns more than five per cent (5%) of, manages, operates, controls, is employed by, acts as an agent for, participates in or is connected in any manner with the ownership, management, operation or control of any business which is engaged in any business which is competitive to the business of the Company or a Related Entity; and are located within a radius of 100 miles of any location where the Grantee was employed or which was under the supervision, management or control of the Grantee; or
|
o
|
solicits or calls either for himself/herself or any other person or firm, any of the customers of the Company or a Related Entity on whom the Grantee called, with whom the Grantee became acquainted, or of whom the Grantee learned of during his/her employment; or
|
o
|
solicits any of the employees or agents of the Company or a Related Entity to terminate their employment or relationship with the Company or a Related Entity.
|
•
|
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. For purposes of
|
•
|
In the event the Grantee involuntarily incurs a Separation from Service other than for Cause or due to a Performance-Related Termination, 100% of the unvested Units subject to the Award shall vest immediately prior to the Grantee’s Separation from Service and the Restricted Period will expire. For purposes of this Agreement, a “Performance-Related Termination” shall mean the Company’s termination of a Participant’s employment or other service due to a documented issue related to the Participant’s performance (but not rising to the level of Cause), as determined by the Company in its sole discretion.
|
•
|
In the event the Grantee involuntarily incurs a Separation from Service due to a Performance-Related Termination, the unvested Units subject to the Award shall vest on a pro-rated basis immediately prior to the Grantee’s Separation from Service and the Restricted Period will expire. For this purpose, the pro-rated amount of Units that may vest will be determined by comparing the Grantee’s completed, full years of service, if any, since the Date of Award to the vesting schedule set forth above (unless an underlying contract with the Grantee provides for a different pro-ration method, in which case, the pro-rated amount of Units that may vest in accordance with this paragraph will be determined in accordance with such underlying contract). Any unvested Restricted Stock Units that do not vest in accordance with this paragraph shall be immediately forfeited.
|
Average After‑Tax ROE Achieved
|
Percentage of the Units Eligible to Vest (“Eligible Units”)
|
Less than 6%
|
0%
|
6%
|
50%
|
9%
|
75%
|
12%
|
100%
|
15%
|
125%
|
18% or more
|
150%
|
•
|
In the event of the Grantee’s death or Disability, or in the event the Grantee involuntarily incurs a Separation from Service other than for Cause or due to Performance‑Related Termination, a number of Eligible Units, if any, shall vest and the Award shall be settled upon the determination by the Company, as
|
•
|
For purposes of this Agreement, a “Performance‑Related Termination” shall mean the Company’s termination of a Participant’s employment or other service due to a documented issue related to the Participant’s performance, as determined by the Company in its sole discretion.
|
•
|
In the event of the Grantee’s Retirement, a number of Eligible Units, if any, shall vest and the Award shall be settled upon the determination by the Company, as provided in paragraph 2 above, provided that (i) during the period following the date of the Grantee’s Retirement until the date on which the Award is settled or, if earlier, the two-year anniversary of the date of the Grantee’s Retirement (such period, the “Non-Compete Period”), the Grantee has satisfied the non-compete provision set forth below, and (ii) if the Grantee violates such non-compete provision before the expiration of the Non-Compete Period, any Units that have not vested before the expiration of the Non-Compete Period will immediately be forfeited. Notwithstanding the immediately preceding sentence, in the event of a Change in Control or Corporate Transaction prior to the settlement described in the foregoing sentence, and provided that the Grantee has not violated the non-compete provision set forth below during the Non-Compete Period, the Total Number of Restricted Stock Units shall vest and the Award shall be settled, as provided in paragraph 3 above. For purposes of this Award, “Retirement” means the Grantee’s voluntary Separation from Service or involuntary Separation from Service other than for Cause from the Company or any Related Entity after attainment of age 65 or after attainment of age 55 after ten (10) years of service with the Company or a Related Entity either as an Employee or Independent Contractor. For purposes of this Award, the Grantee shall be deemed to have not satisfied the non-compete provision if the Grantee:
|
o
|
discloses the list of the Company’s or a Related Entity’s customers or any part thereof to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever; or
|
o
|
discloses to any person, firm, corporation, association, or other entity any information regarding the Company’s or a Related Entity’s general business practices or procedures, methods of sale, list of products, personnel information and any other valuable confidential business or professional information unique to the Company’s or a Related Entity’s business; or
|
o
|
owns more than five per cent (5%) of, manages, operates, controls, is employed by, acts as an agent for, participates in or is connected in any manner with the ownership, management, operation or control of any business which is engaged in any business which is competitive to the business of the Company or a Related Entity; and are located within a
|
o
|
solicits or calls either for himself/herself or any other person or firm, any of the customers of the Company or a Related Entity on whom the Grantee called, with whom the Grantee became acquainted, or of whom the Grantee learned of during his/her employment; or
|
o
|
solicits any of the employees or agents of the Company or a Related Entity to terminate their employment or relationship with the Company or a Related Entity.
|
•
|
In the event of a Corporate Transaction or Change in Control the Units will further be subject to the terms and conditions of Section 11 of the Plan. For purposes of Section 11 of the Plan, this Award was granted in lieu of a cash payment for all or a portion of the Grantee’s annual bonus.
|
•
|
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 Restricted Period will expire.
|
•
|
In the event of the Grantee’s Retirement, a number of Units subject to the Award shall vest (to the extent not already vested) based on the schedule below, and the Restricted Period shall expire with respect to such Units. In the event of a settlement of Units under this Award due to Retirement, the Grantee shall be subject to the non-compete provisions for two years from the date of Retirement (the “Non-Compete Period”). If the Grantee does not satisfy the non-compete provision during the Non-Compete Period, the Grantee agrees to repay to the Company the number of Shares issued to the Grantee (including Shares withheld for tax purposes) in connection with the Retirement.
|
Retirement on or after anniversaries of Date of Award
|
|||||
Anniversary
|
1st
|
2nd
|
3rd
|
4th
|
5th
|
Vesting Percentage
|
20%
|
20%
|
20%
|
20%
|
20%
|
•
|
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.
|
•
|
discloses the list of the Company’s or a Related Entity’s customers or any part thereof to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever; or
|
•
|
discloses to any person, firm, corporation, association, or other entity any information regarding the Company’s or a Related Entity’s general business practices or procedures, methods of sale, list of products, personnel information and any other valuable confidential business or professional information unique to the Company’s or a Related Entity’s business; or
|
•
|
owns more than five per cent (5%) of, manages, operates, controls, is employed by, acts as an agent for, participates in or is connected in any manner with the
|
•
|
solicits or calls either for himself/herself or any other person or firm, any of the customers of the Company or a Related Entity on whom the Grantee called, with whom the Grantee became acquainted, or of whom the Grantee learned of during his/her employment; or
|
•
|
solicits any of the employees or agents of the Company or a Related Entity to terminate their employment or relationship with the Company or a Related Entity.
|
•
|
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 Restricted Period will expire.
|
•
|
In the event of the Grantee’s Retirement, 100% of the unvested Units subject to the Award shall vest immediately prior to the Grantee’s Retirement, provided that
|
o
|
discloses the list of the Company’s or a Related Entity’s customers or any part thereof to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever; or
|
o
|
discloses to any person, firm, corporation, association, or other entity any information regarding the Company’s or a Related Entity’s general business practices or procedures, methods of sale, list of products, personnel information and any other valuable confidential business or professional information unique to the Company’s or a Related Entity’s business; or
|
o
|
owns more than five per cent (5%) of, manages, operates, controls, is employed by, acts as an agent for, participates in or is connected in any manner with the ownership, management, operation or control of any business which is engaged in any business which is competitive to the business of the Company or a Related Entity; and are located within a radius of 100 miles of any location where the Grantee was employed or which was under the supervision, management or control of the Grantee; or
|
o
|
solicits or calls either for himself/herself or any other person or firm, any of the customers of the Company or a Related Entity on whom the Grantee called, with whom the Grantee became acquainted, or of whom the Grantee learned of during his/her employment; or
|
o
|
solicits any of the employees or agents of the Company or a Related Entity to terminate their employment or relationship with the Company or a Related Entity.
|
•
|
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. For purposes of Section 11 of the Plan, this Award was granted in lieu of a cash payment for all or a portion of the Grantee’s annual bonus.
|
•
|
In the event the Grantee involuntarily incurs a Separation from Service other than for Cause or due to a Performance-Related Termination, 100% of the unvested Units subject to the Award shall vest immediately prior to the Grantee’s Separation from Service and the Restricted Period will expire. For purposes of this Agreement, a “Performance-Related Termination” shall mean the Company’s termination of a Participant’s employment or other service due to a documented issue related to the Participant’s performance (but not rising to the level of Cause), as determined by the Company in its sole discretion.
|
•
|
In the event the Grantee involuntarily incurs a Separation from Service due to a Performance-Related Termination, the unvested Units subject to the Award shall vest on a pro-rated basis immediately prior to the Grantee’s Separation from Service and the Restricted Period will expire. For this purpose, the pro-rated amount of Units that may vest will be determined by comparing the Grantee’s completed, full years of service, if any, since the Date of Award to the vesting schedule set forth above (unless an underlying contract with the Grantee provides for a different pro-ration method, in which case, the pro-rated amount of Units that may vest in accordance with this paragraph will be determined in accordance with such underlying contract). Any unvested Restricted Stock Units that do not vest in accordance with this paragraph shall be immediately forfeited.
|
Average After‑Tax ROE Achieved
|
Percentage of the Units Eligible to Vest (“Eligible Units”)
|
Less than 6%
|
0%
|
6%
|
50%
|
9%
|
75%
|
12%
|
100%
|
15%
|
125%
|
18% or more
|
150%
|
•
|
In the event of the Grantee’s death or Disability, or in the event the Grantee involuntarily incurs a Separation from Service other than for Cause or due to Performance‑Related Termination, a number of Eligible Units, if any, shall vest and the Award shall be settled upon the determination by the Company, as
|
•
|
In the event the Grantee involuntarily incurs a Separation from Service due to a Performance-Related Termination, the unvested Units subject to the Award shall vest on a pro-rated basis upon the determination by the Company, as provided in paragraph 2 above, and the Restricted Period shall expire as to the pro-rated amount. For this purpose, the pro-rated amount of Units that may vest will be determined by comparing the Grantee’s completed full years of service, if any within the applicable performance period to the full term of the performance period (unless an underlying contract with the Grantee provides for a different pro-ration method, in which case, the pro-rated amount of Units with such underlying contract). Any unvested Restricted Stock Units that do not vest in accordance with this paragraph shall be forfeited.
|
•
|
For purposes of this Agreement, a “Performance‑Related Termination” shall mean the Company’s termination of a Participant’s employment or other service due to a documented issue related to the Participant’s performance, as determined by the Company in its sole discretion.
|
•
|
In the event of the Grantee’s Retirement, a number of Eligible Units, if any, shall vest and the Award shall be settled upon the determination by the Company, as provided in paragraph 2 above, provided that (i) during the period following the date of the Grantee’s Retirement until the date on which the Award is settled or, if earlier, the two-year anniversary of the date of the Grantee’s Retirement (such period, the “Non-Compete Period”), the Grantee has satisfied the non-compete provision set forth below, and (ii) if the Grantee violates such non-compete provision before the expiration of the Non-Compete Period, any Units that have not vested before the expiration of the Non-Compete Period will immediately be forfeited. Notwithstanding the immediately preceding sentence, in the event of a Change in Control or Corporate Transaction prior to the settlement described in the foregoing sentence, and provided that the Grantee has not violated the non-compete provision set forth below during the Non-Compete Period, the Total Number of Restricted Stock Units shall vest and the Award shall be settled, as provided in paragraph 3 above. For purposes of this Award, “Retirement” means the Grantee’s voluntary Separation from Service or involuntary Separation from Service other than for Cause from the Company or any Related Entity after attainment of age 65 or after attainment of age 55 after five (10) years of service with the Company or a Related Entity either as an Employee or Independent Contractor. For purposes of this Award, the Grantee shall be deemed to have not satisfied the non-compete provision if the Grantee:
|
o
|
discloses the list of the Company’s or a Related Entity’s customers or any part thereof to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever; or
|
o
|
discloses to any person, firm, corporation, association, or other entity any information regarding the Company’s or a Related Entity’s general business practices or procedures, methods of sale, list of products, personnel information and any other valuable confidential business or professional information unique to the Company’s or a Related Entity’s business; or
|
o
|
owns more than five per cent (5%) of, manages, operates, controls, is employed by, acts as an agent for, participates in or is connected in any manner with the ownership, management, operation or control of any business which is engaged in any business which is competitive to the business of the Company or a Related Entity; and are located within a radius of 100 miles of any location where the Grantee was employed or which was under the supervision, management or control of the Grantee; or
|
o
|
solicits or calls either for himself/herself or any other person or firm, any of the customers of the Company or a Related Entity on whom the Grantee called, with whom the Grantee became acquainted, or of whom the Grantee learned of during his/her employment; or
|
o
|
solicits any of the employees or agents of the Company or a Related Entity to terminate their employment or relationship with the Company or a Related Entity.
|
•
|
In the event of a Corporate Transaction or Change in Control the Units will further be subject to the terms and conditions of Section 11 of the Plan. For purposes of Section 11 of the Plan, this Award was granted in lieu of a cash payment for all or a portion of the Grantee’s annual bonus.
|
•
|
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 Restricted Period will expire.
|
•
|
In the event of the Grantee’s Retirement, a number of Units subject to the Award shall vest (to the extent not already vested) based on the schedule below, and the Restricted Period shall expire with respect to such Units. In the event of a
|
Anniversary
|
1st
|
2nd
|
3rd
|
Vesting Percentage
|
33%
|
33%
|
34%
|
•
|
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.
|
•
|
discloses the list of the Company’s or a Related Entity’s customers or any part thereof to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever; or
|
•
|
discloses to any person, firm, corporation, association, or other entity any information regarding the Company’s or a Related Entity’s general business practices or procedures, methods of sale, list of products, personnel information and any other valuable confidential business or professional information unique to the Company’s or a Related Entity’s business; or
|
•
|
owns more than five per cent (5%) of, manages, operates, controls, is employed by, acts as an agent for, participates in or is connected in any manner with the ownership, management, operation or control of any business which is engaged in any business which is competitive to the business of the Company or a Related Entity; and are located within a radius of 100 miles of any location where the Grantee was employed or which was under the supervision, management or control of the Grantee; or
|
•
|
solicits or calls either for himself/herself or any other person or firm, any of the customers of the Company or a Related Entity on whom the Grantee called, with
|
•
|
solicits any of the employees or agents of the Company or a Related Entity to terminate their employment or relationship with the Company or a Related Entity.
|
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three months ended December 31,
|
|
Year ended September 30,
|
||||||||||||||||||||||||
$ in thousands
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pre-tax income excluding noncontrolling interests
|
|
$
|
311,243
|
|
|
$
|
206,379
|
|
|
$
|
925,346
|
|
|
$
|
800,643
|
|
|
$
|
798,174
|
|
|
$
|
748,045
|
|
|
$
|
564,187
|
|
Fixed charges
|
|
49,271
|
|
|
45,340
|
|
|
237,885
|
|
|
148,329
|
|
|
135,874
|
|
|
131,466
|
|
|
136,749
|
|
|||||||
Less: preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Earnings
|
|
$
|
360,514
|
|
|
$
|
251,719
|
|
|
$
|
1,163,231
|
|
|
$
|
948,972
|
|
|
$
|
934,048
|
|
|
$
|
879,511
|
|
|
$
|
700,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense
|
|
$
|
39,221
|
|
|
$
|
35,638
|
|
|
$
|
152,617
|
|
|
$
|
114,921
|
|
|
$
|
104,862
|
|
|
$
|
99,978
|
|
|
$
|
105,200
|
|
Estimated interest portion within rental expense
|
|
9,840
|
|
|
9,374
|
|
|
38,361
|
|
|
32,273
|
|
|
29,799
|
|
|
30,275
|
|
|
30,337
|
|
|||||||
Amortization of debt issuance costs
|
|
210
|
|
|
328
|
|
|
1,161
|
|
|
1,135
|
|
|
1,213
|
|
|
1,213
|
|
|
1,212
|
|
|||||||
Losses on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
45,746
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total fixed charges
|
|
$
|
49,271
|
|
|
$
|
45,340
|
|
|
$
|
237,885
|
|
|
$
|
148,329
|
|
|
$
|
135,874
|
|
|
$
|
131,466
|
|
|
$
|
136,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends
|
|
7.32
|
|
|
5.55
|
|
|
4.89
|
|
|
6.40
|
|
|
6.87
|
|
|
6.69
|
|
|
5.13
|
|
|
Date:
|
February 8, 2018
|
|
/s/ PAUL C. REILLY
|
|
Paul C. Reilly
|
|
Chairman and Chief Executive Officer
|
|
Date:
|
February 8, 2018
|
|
/s/ JEFFREY P. JULIEN
|
|
Jeffrey P. Julien
|
|
Executive Vice President - Finance, Chief Financial Officer and Treasurer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ PAUL C. REILLY
|
|
Paul C. Reilly
|
|
Chairman and Chief Executive Officer
|
|
February 8, 2018
|
|
/s/ JEFFREY P. JULIEN
|
|
Jeffrey P. Julien
|
|
Executive Vice President - Finance, Chief Financial Officer and Treasurer
|
|
February 8, 2018
|