FORM 10-K
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Florida
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No. 59-1517485
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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880 Carillon Parkway, St. Petersburg, Florida
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33716
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code
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(
727) 567-1000
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Title of each class
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Name of each exchange on which registered
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Common Stock, $.01 par value
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New York Stock Exchange
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Securities registered pursuant to Section 12(g) of the Act:
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None
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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PAGE
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PART I.
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Item 1.
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Business
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Item 1A.
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Risk factors
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Item 1B.
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Unresolved staff comments
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Item 2.
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Properties
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Item 3.
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Legal proceedings
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Item 4.
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Mine safety disclosures
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PART II.
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Item 5.
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Market for registrant’s common equity, related shareholder matters and issuer purchases of equity securities
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Item 6.
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Selected financial data
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Item 7.
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Management’s discussion and analysis of financial condition and results of operations
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Item 7A.
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Quantitative and qualitative disclosures about market risk
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Item 8.
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Financial statements and supplementary data
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Item 9.
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Changes in and disagreements with accountants on accounting and financial disclosure
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Item 9A.
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Controls and procedures
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Item 9B.
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Other information
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PART III.
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Item 10.
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Directors, executive officers and corporate governance
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Item 11.
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Executive compensation
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Item 12.
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Security ownership of certain beneficial owners and management and related shareholder matters
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Item 13.
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Certain relationships and related transactions, and director independence
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Item 14.
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Principal accountant fees and services
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PART IV.
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Item 15.
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Exhibits and financial statement schedules
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Signatures
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•
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We provide investment services for which we charge sales commissions or asset-based fees based on established schedules.
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We offer investment advisory services. Fee revenues for such services are computed as either a percentage of the assets in the client account or a flat periodic fee charged to the client for investment advice.
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We provide insurance and annuity products.
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We offer a number of professionally managed mutual funds.
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We earn fees from banks to which we sweep client cash in our Raymond James Bank Deposit Program (“RJBDP”). Such fees are generally based on client cash balances in the program and short-term interest rates relative to the interest paid to clients on balances in the RJBDP.
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We provide margin loans to clients that are collateralized by the securities purchased or by other securities owned by the client. Interest is charged to clients on the amount borrowed based on current interest rates.
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We provide custodial, trading, research and other support and services (including access to clients’ account information and the services of the Asset Management segment) to the independent registered investment advisors who are affiliated with us.
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We conduct securities borrowing and lending activities with other broker-dealers, financial institutions and other counterparties. The net revenues of this business consist of the interest spreads generated on these activities.
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We provide diversification strategies and alternative investment products to qualified clients of our affiliated financial advisors. We provide strategies and products for portfolio investment allocation opportunities.
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We earn institutional sales commissions on the sale of equity products. Sales volume is influenced by a combination of general market activity and the Capital Markets group’s ability to identify and promote attractive investment opportunities for our institutional clients. Commission amounts on equity transactions are based on trade size and the amount of business conducted annually with each institution.
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We provide various investment banking services including public and private equity financing for corporate clients and merger & acquisition and advisory services. Our investment banking activities include a comprehensive range of strategic and financial advisory services tailored to our clients’ business life cycles and backed by our strategic industry focus.
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Our global research department supports our institutional and retail sales efforts and publishes research on a wide variety of companies. This research primarily focuses on U.S., European and Canadian companies in specific industries, including agricultural, consumer, energy, clean energy, energy services, financial services, healthcare, industrial, mining and natural resources, forest products, real estate, technology, and communication and transportation. Proprietary industry studies and company-specific research reports are made available to both institutional and individual clients.
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We earn revenues from institutional clients who purchase and sell both taxable and tax-exempt fixed income products, primarily municipal, corporate, government agency and mortgage-backed bonds, and whole loans. We carry inventories of taxable and tax-exempt securities to facilitate client transactions.
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Our fixed income investment banking services include public finance and debt underwriting activities where we serve as a financial advisor, placement agent or underwriter to various issuers, including state and local government agencies (and their political subdivisions), housing agencies, and non-profit entities including healthcare and higher education institutions. When underwriting new issue securities, we may agree to purchase the issue through a negotiated sale or submission of a competitive bid.
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We enter into interest rate swaps and futures contracts either to facilitate client transactions or to actively manage risk exposures that arise from our client activity, including a portion of our trading inventory. In addition, we conduct a “matched book” derivatives business where we may enter into interest rate derivative transactions with clients. In this matched book business, for every derivative transaction we enter into with a client, we enter into an offsetting derivative transaction with a credit support provider that is a third-party financial institution.
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Through our fixed income public finance operations, we enter into forward commitments to purchase agency mortgage-backed securities (“MBS”). Such MBS are issued on behalf of various state and local housing finance agencies (“HFA”) and consist of the mortgages originated through their lending programs.
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In our syndication of tax credit investments, one of our subsidiaries acts as the general partner or managing member in partnerships and limited liability companies that invest in real estate project entities which qualify for tax credits under Section 42 of the Internal Revenue Code. We earn fees for the origination and sale of these investment products as well as for the oversight and management of the investments over the statutory tax credit compliance period.
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Jennifer C. Ackart
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54
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Senior Vice President since August 2009 and Controller since February 1995
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Bella Loykhter Allaire
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65
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Executive Vice President - Technology and Operations - Raymond James & Associates, Inc. since June 2011; Managing Director and Chief Information Officer - UBS Wealth Management Americas, November 2006 - January 2011
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Paul D. Allison
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62
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Chairman, President and CEO - Raymond James Ltd. since January 2009; Co-President and Co-CEO - Raymond James Ltd., August 2008 - January 2009
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James E. Bunn
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45
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Co-President - Global Equities and Investment Banking - Raymond James & Associates, Inc. since October 2017; Head of Investment Banking - Raymond James & Associates, Inc. since January 2014; Co-Head of Technology Services Investment Banking - Raymond James & Associates, Inc., May 2009 - December 2013
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John C. Carson, Jr.
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62
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President since April 2012; President - Morgan Keegan & Company, LLC, formerly known as Morgan Keegan & Company, Inc., since July 2013; Chief Executive Officer and Executive Managing Director - Morgan Keegan & Company, Inc., March 2008 - July 2013
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George Catanese
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59
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Chief Risk Officer since February 2006
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Scott A. Curtis
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56
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President - Private Client Group since June 2018; President - Raymond James Financial Services, Inc. since January 2012; Senior Vice President - Private Client Group - Raymond James & Associates, Inc., July 2005 - December 2011
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Jeffrey A. Dowdle
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54
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Chief Administrative Officer since August 2018 and President - Asset Management Group since May 2016; Executive Vice President - Asset Management Group, February 2014 - May 2016; President - Asset Management Services - Raymond James & Associates, Inc., January 2005 - February 2014; Senior Vice President - Raymond James & Associates, Inc., January 2005 - February 2014
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Tashtego S. Elwyn
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47
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Chief Executive Officer and President - Raymond James & Associates, Inc. since June 2018; President - Private Client Group - Raymond James & Associates, Inc., January 2012 - June 2018; Regional Director - Raymond James & Associates, Inc., October 2006 - December 2011
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Thomas A. James
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76
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Chairman Emeritus since February 2017; Executive Chairman, May 2010 - February 2017
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Jeffrey P. Julien
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62
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Executive Vice President - Finance since August 2009 and Chief Financial Officer since April 1987; Treasurer, February 2011 - February 2018
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Jodi L. Perry
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47
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President - Independent Contractor Division - Raymond James Financial Services, Inc. since June 2018; Senior Vice President, National Director - ICD - Raymond James Financial Services, Inc., May 2018 - June 2018; Senior Vice President, ICD Regional Director - Raymond James Financial Services, Inc., June 2012 - May 2018
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Steven M. Raney
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53
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President and CEO - Raymond James Bank, N.A. since January 2006
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Paul C. Reilly
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64
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Chairman since February 2017 and Chief Executive Officer since May 2010; Director since January 2006; President, May 2009 - April 2010
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Jonathan N. Santelli
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47
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Executive Vice President, General Counsel and Secretary since May 2016; Senior Vice President and Deputy General Counsel - First Republic Bank, October 2013 to April 2016; Managing Director and Associate General Counsel - Preferred and Small Business Banking - Bank of America, December 2011 - August 2013; Managing Director and Associate General Counsel - Private Wealth Management - Bank of America, October 2009 - November 2011
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Jeffrey E. Trocin
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59
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Co-President - Global Equities and Investment Banking - Raymond James & Associates, Inc. since October 2017; President - Global Equities and Investment Banking - Raymond James & Associates, Inc., July 2013 - October 2017; Executive Vice President - Equity Capital Markets - Raymond James & Associates, Inc., February 2001 - July 2013
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•
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We lease approximately 190,000 square feet in Memphis, Tennessee, along with approximately 150,000 square feet in New York and 70,000 square feet in Chicago, with other office and branch locations throughout the U.S;
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We lease approximately 80,000 square feet in Vancouver and approximately 75,000 square feet in Toronto, along with other office and branch locations throughout Canada;
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We lease approximately 24,000 square feet in London, along with other office locations in Germany and France.
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Fiscal year
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2018
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2017
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High
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Low
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High
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Low
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First quarter
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$
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91.29
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$
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81.90
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$
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74.70
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$
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56.61
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Second quarter
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$
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99.26
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$
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84.37
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$
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81.92
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$
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69.09
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Third quarter
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$
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102.17
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$
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83.89
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$
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82.59
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$
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71.35
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Fourth quarter
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$
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97.62
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$
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87.56
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$
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85.97
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$
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74.81
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Total number of shares
purchased
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Average price
per share
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Number of shares purchased as part of publicly announced plans or programs
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Approximate dollar value (in thousands) at each month-end, of securities that may yet be purchased under the plans or programs
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October 1, 2017 – October 31, 2017
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8,493
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$
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85.25
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—
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$
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135,671
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November 1, 2017 – November 30, 2017
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18,539
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$
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85.32
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—
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$
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135,671
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December 1, 2017 – December 31, 2017
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205,504
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$
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87.32
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—
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$
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135,671
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First quarter
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232,536
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$
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87.08
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—
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January 1, 2018 – January 31, 2018
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18,887
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$
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91.47
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—
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$
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135,671
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February 1, 2018 – February 28, 2018
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5,708
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$
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91.85
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—
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$
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135,671
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March 1, 2018 – March 31, 2018
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861
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$
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97.04
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—
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$
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135,671
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Second quarter
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25,456
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$
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91.74
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—
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April 1, 2018 – April 30, 2018
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1,966
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$
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87.44
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—
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$
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135,671
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May 1, 2018 – May 31, 2018
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9,035
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$
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95.11
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—
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$
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250,000
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June 1, 2018 – June 30, 2018
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1,750
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$
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97.60
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—
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$
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250,000
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Third quarter
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12,751
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$
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94.27
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—
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July 1, 2018 – July 31, 2018
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344
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$
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96.56
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—
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$
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250,000
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August 1, 2018 – August 31, 2018
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419,692
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$
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90.63
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401,406
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$
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213,635
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September 1, 2018 – September 30, 2018
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1,218
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$
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92.77
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—
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$
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213,635
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Fourth quarter
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421,254
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$
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90.64
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401,406
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Fiscal year total
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691,997
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$
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89.55
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401,406
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Year ended September 30,
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in thousands, except per share amounts
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2018
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2017
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2016
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2015
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2014
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Operating results:
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Net revenues
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$
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7,274,318
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$
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6,371,097
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$
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5,405,064
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$
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5,203,606
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$
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4,861,924
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Net income attributable to Raymond James Financial, Inc.
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$
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856,695
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$
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636,235
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$
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529,350
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$
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502,140
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$
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480,248
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Earnings per common share - basic
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$
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5.89
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$
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4.43
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$
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3.72
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$
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3.51
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$
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3.41
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Earnings per common share - diluted
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$
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5.75
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$
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4.33
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$
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3.65
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$
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3.43
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$
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3.32
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Weighted-average common shares outstanding - basic
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145,271
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143,275
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141,773
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142,548
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139,935
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Weighted-average common and common equivalent shares outstanding - diluted
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148,838
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146,647
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144,513
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145,939
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143,589
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Dividends per common share - declared
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$
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1.10
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$
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0.88
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$
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0.80
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$
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0.72
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$
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0.64
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Financial condition:
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Total assets
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$
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37,412,924
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$
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34,883,456
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$
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31,486,976
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$
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26,325,850
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$
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23,135,343
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Senior notes payable maturing within twelve months
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$
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—
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$
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—
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$
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—
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$
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250,000
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$
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—
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Long-term obligations:
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Non-current portion of other borrowings
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$
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893,837
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$
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898,967
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$
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604,080
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$
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583,740
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$
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537,932
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Non-current portion of senior notes payable
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$
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1,550,000
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$
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1,550,000
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$
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1,700,000
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$
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900,000
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$
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1,150,000
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Total long-term debt
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$
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2,443,837
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$
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2,448,967
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$
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2,304,080
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$
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1,483,740
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$
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1,687,932
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Total equity attributable to Raymond James Financial, Inc.
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$
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6,368,461
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$
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5,581,713
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$
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4,916,545
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$
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4,524,481
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$
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4,143,686
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Shares outstanding
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145,642
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|
144,097
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|
141,545
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|
|
142,751
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140,836
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Book value per share
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$
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43.73
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$
|
38.74
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$
|
34.73
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$
|
31.69
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|
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$
|
29.42
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INDEX
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PAGE
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Introduction
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Executive overview
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Segments
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Reconciliation of GAAP measures to non-GAAP measures
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Net interest analysis
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Results of Operations
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Private Client Group
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Capital Markets
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Asset Management
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RJ Bank
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Other
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Certain statistical disclosures by bank holding companies
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Liquidity and capital resources
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Sources of liquidity
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Statement of financial condition analysis
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Contractual obligations
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Regulatory
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Critical accounting estimates
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Recent accounting developments
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Off-balance sheet arrangements
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Effects of inflation
|
|
Risk management
|
(1)
|
“Adjusted net income” and “adjusted earnings per diluted share” are each non-GAAP financial measures. Please see the “reconciliation of GAAP measures to non-GAAP measures” in this Item 2, for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures, and for other important disclosures.
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•
|
Our PCG segment generated net revenues of
$5.09 billion
, a
15%
increase, and pre-tax income of
$576 million
, an
increase
of
54%
over the prior year, which was negatively impacted by $130 million of 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 increased fee-based assets resulting from higher equity markets and continued strong financial advisor recruiting and retention. The segment also benefited from an increase in account and service fees related to client cash balances in our RJBDP and higher net interest income. Non-interest expenses
increased
$468 million
, or
12%
, primarily resulting from increases in compensation, commissions and benefits expenses and communications and information processing expenses, offset by a decrease in the aforementioned legal expenses.
|
•
|
Our Capital Markets segment generated net revenues of
$964 million
, a
5%
decrease over the prior year, and pre-tax income declined
36%
to
$91 million
. The decrease in net revenues was primarily due to market-driven challenges and low levels of client activity, which led to decreases in institutional fixed income and equity commissions and net trading profits. Investment banking revenues increased due to stronger merger & acquisition activity, partially offset by lower equity underwriting revenues. Non-interest expenses decreased slightly compared with the prior year.
|
•
|
Our Asset Management segment generated a
34%
increase in net revenues to
$654 million
, and pre-tax income
increased
37%
to
$235 million
. The increase in net revenues primarily reflected increases in advisory fees from managed programs and, to a lesser degree, non-discretionary asset-based administrative fees. Financial assets under management increased 46% over the period year, aided by the acquisition of Scout Investments, Inc. (the “Scout Group”), which added $27 billion of assets under management in November 2017. Non-interest expenses
increased
$100 million
, or
32%
, primarily resulting from increased expenses related to the Scout Group acquisition and increased investment sub-advisory fees.
|
•
|
RJ Bank generated a
23%
increase in net revenues to
$727 million
, while pre-tax income
increased
20%
to
$492 million
. The increase in net revenues resulted primarily from an increase in net interest income due to growth in interest-earning assets and an increase in net interest margin. Non-interest expenses
increased
$52 million
, or
28%
, primarily reflecting higher affiliate deposit fees paid to PCG due to an increase in client accounts and an increase in compensation and benefits expenses.
|
•
|
Our Other segment reflected a pre-tax loss that was
$87 million
, a decline of
51%
from the prior year, primarily due to a decrease in net interest expense, losses on the extinguishment of certain of our senior notes in the prior year, and lower acquisition-related expenses. The decline in net interest expense reflected a decrease in the outstanding balance and average interest rate of our senior notes payable, as well as an increase in interest income related to the increased interest rates earned on higher corporate cash balances.
|
(1)
|
“Adjusted net income” and “adjusted earnings per diluted share” are each non-GAAP financial measures. Please see the “reconciliation of GAAP measures to non-GAAP measures” in this Item 2, for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures, and for other important disclosures.
|
•
|
Our Private Client Group segment generated net revenues of $4.42 billion, a 22% increase, while pre-tax income increased 10% to $373 million. The increase in net revenues was primarily attributable to an increase in securities commissions and fees, driven by strong recruiting results, the acquisitions of Alex. Brown and 3Macs in late fiscal 2016 and a stronger market environment compared to the prior year. The segment also benefited from the impact of higher short-term interest rates, resulting in increases in fees related to our RJBDP and interest income. Non-interest expenses increased $773 million, or 24%, primarily resulting from an increase in sales commission expense, increased legal expenses related to the Jay Peak settlement and increased administrative & incentive compensation and benefits expense.
|
•
|
The Capital Markets segment generated net revenues of $1.01 billion, a 1% increase, while pre-tax income also increased 1% to $141 million. The increase in net revenues was primarily due to an increase in merger & acquisition and advisory fee revenues and equity underwriting fees, partially offset by a decline in institutional sales commissions and trading profits, reflecting lower levels of volatility, and a decline in tax credit funds syndication revenues resulting from uncertainty over corporate tax reform. Non-interest expenses increased $16 million, or 2%, primarily resulting from an increase in incentive compensation and benefits expense largely related to improved investment banking results.
|
•
|
Our Asset Management segment benefited from increased fee-based client assets, generating a 21% increase in net revenues to $488 million, while pre-tax income increased 30% to $172 million. The increase in net revenues primarily reflected increases in advisory fee revenues from managed programs and in non-discretionary asset-based administration fee revenues as financial assets under management in managed programs and assets held in non-discretionary asset-based programs increased 25% and 32%, respectively over the prior year level. Non-interest expenses increased $42 million, or 16%, primarily resulting from increased investment sub-advisory fees and growth-related increases in administrative & incentive compensation and benefits expense.
|
•
|
RJ Bank generated a 20% increase in net revenues to $593 million, while pre-tax income increased 21% to $409 million. The increase in pre-tax income resulted primarily from an increase in net interest income and a decrease in the provision for loan losses, partially offset by higher affiliate deposit fees paid to the Private Client Group due to an increase in client account balances. Net interest income increased due to both growth in average interest-earning assets and an increase in the net interest margin which benefited from the impact of higher short-term interest rates.
|
•
|
Activities in our Other segment generated a pre-tax loss that was $21 million, or 14% more than the prior year, primarily due to the losses on the early extinguishment of certain senior notes payable, combined with higher interest expense related to a higher average balance of our senior notes payable for the fiscal year. Total revenues in the segment increased $19 million, or 41%, primarily due to higher net valuation gains from our private equity portfolio and an increase in interest income due to increased short-term interest rates and higher corporate cash balances.
|
|
|
Year ended September 30,
|
|
% change
|
||||||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||||||
Total company
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
|
$
|
7,274,318
|
|
|
$
|
6,371,097
|
|
|
$
|
5,405,064
|
|
|
14
|
%
|
|
18
|
%
|
Pre-tax income
|
|
1,310,655
|
|
|
925,346
|
|
|
800,643
|
|
|
42
|
%
|
|
16
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Private Client Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
5,093,030
|
|
|
4,421,633
|
|
|
3,616,479
|
|
|
15
|
%
|
|
22
|
%
|
|||
Pre-tax income
|
|
576,094
|
|
|
372,950
|
|
|
340,564
|
|
|
54
|
%
|
|
10
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
963,773
|
|
|
1,013,683
|
|
|
1,001,716
|
|
|
(5
|
)%
|
|
1
|
%
|
|||
Pre-tax income
|
|
90,647
|
|
|
141,236
|
|
|
139,173
|
|
|
(36
|
)%
|
|
1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
654,377
|
|
|
487,658
|
|
|
404,349
|
|
|
34
|
%
|
|
21
|
%
|
|||
Pre-tax income
|
|
235,336
|
|
|
171,736
|
|
|
132,158
|
|
|
37
|
%
|
|
30
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
RJ Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
726,675
|
|
|
592,670
|
|
|
493,966
|
|
|
23
|
%
|
|
20
|
%
|
|||
Pre-tax income
|
|
491,779
|
|
|
409,303
|
|
|
337,296
|
|
|
20
|
%
|
|
21
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net revenues
|
|
(15,156
|
)
|
|
(29,870
|
)
|
|
(31,692
|
)
|
|
49
|
%
|
|
6
|
%
|
|||
Pre-tax loss
|
|
(83,201
|
)
|
|
(169,879
|
)
|
|
(148,548
|
)
|
|
51
|
%
|
|
(14
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Intersegment eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net revenues
|
|
(148,381
|
)
|
|
(114,677
|
)
|
|
(79,754
|
)
|
|
|
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands, except per share amounts
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Income
|
|
$
|
856,695
|
|
|
$
|
636,235
|
|
|
$
|
529,350
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
||||||
Acquisition-related expenses
|
|
3,927
|
|
|
17,995
|
|
|
40,706
|
|
|||
Losses on extinguishment of debt
|
|
—
|
|
|
45,746
|
|
|
—
|
|
|||
Jay Peak matter
|
|
—
|
|
|
130,000
|
|
|
20,000
|
|
|||
Sub-total pre-tax non-GAAP adjustments
|
|
3,927
|
|
|
193,741
|
|
|
60,706
|
|
|||
Tax effect of non-GAAP adjustments
|
|
(1,100
|
)
|
|
(61,869
|
)
|
|
(20,570
|
)
|
|||
Impact of the Tax Act
|
|
105,254
|
|
|
—
|
|
|
—
|
|
|||
Total non-GAAP adjustments, net of tax
|
|
108,081
|
|
|
131,872
|
|
|
40,136
|
|
|||
Adjusted net income
|
|
$
|
964,776
|
|
|
$
|
768,107
|
|
|
$
|
569,486
|
|
|
|
|
|
|
|
|
||||||
Earnings per common share
:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
5.89
|
|
|
$
|
4.43
|
|
|
$
|
3.72
|
|
Diluted
|
|
$
|
5.75
|
|
|
$
|
4.33
|
|
|
$
|
3.65
|
|
Adjusted basic
|
|
$
|
6.63
|
|
|
$
|
5.35
|
|
|
$
|
4.01
|
|
Adjusted diluted
|
|
$
|
6.47
|
|
|
$
|
5.23
|
|
|
$
|
3.93
|
|
Effective tax rate
:
|
|
|
|
|
|
|
|||||
For the twelve months ended September 30, 2018
($ in thousands)
|
|
Pre-tax income including noncontrolling interests
|
|
Provision for income taxes
|
|
Effective tax rate
|
|||||
|
|
$
|
1,304,877
|
|
|
$
|
453,960
|
|
|
34.8
|
%
|
Less: impact of the Tax Act
|
|
|
|
105,254
|
|
|
|
||||
As adjusted for the impact of the Tax Act
|
|
|
|
$
|
348,706
|
|
|
26.7
|
%
|
|
|
Year ended September 30,
|
|||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||||||||
$ in thousands
|
|
Average
balance |
|
Interest
inc./exp. |
|
Average
yield/cost |
|
Average
balance |
|
Interest
inc./exp. |
|
Average
yield/cost |
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/cost
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash segregated pursuant to regulations
|
|
$
|
2,587,759
|
|
|
$
|
52,561
|
|
|
2.03
|
%
|
|
$
|
3,250,854
|
|
|
$
|
37,270
|
|
|
1.15
|
%
|
|
3,565,252
|
|
|
22,287
|
|
|
0.63
|
%
|
||
Securities loaned
|
|
381,422
|
|
|
14,548
|
|
|
3.81
|
%
|
|
456,573
|
|
|
14,049
|
|
|
3.08
|
%
|
|
577,002
|
|
|
8,777
|
|
|
1.52
|
%
|
||||||
Trading instruments
|
|
694,715
|
|
|
23,016
|
|
|
3.31
|
%
|
|
655,302
|
|
|
21,068
|
|
|
3.22
|
%
|
|
707,321
|
|
|
19,362
|
|
|
2.74
|
%
|
||||||
Available-for-sale securities
|
|
2,530,988
|
|
|
52,420
|
|
|
2.07
|
%
|
|
1,588,484
|
|
|
27,946
|
|
|
1.76
|
%
|
|
561,925
|
|
|
7,596
|
|
|
1.35
|
%
|
||||||
Margin loans
|
|
2,586,882
|
|
|
107,201
|
|
|
4.14
|
%
|
|
2,403,451
|
|
|
85,699
|
|
|
3.57
|
%
|
|
1,811,845
|
|
|
68,712
|
|
|
3.79
|
%
|
||||||
Bank loans, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
C&I loans
|
|
7,618,949
|
|
|
326,042
|
|
|
4.22
|
%
|
|
7,340,052
|
|
|
281,274
|
|
|
3.78
|
%
|
|
7,171,402
|
|
|
271,476
|
|
|
3.73
|
%
|
||||||
CRE construction loans
|
|
165,780
|
|
|
8,547
|
|
|
5.08
|
%
|
|
129,073
|
|
|
6,184
|
|
|
4.73
|
%
|
|
169,101
|
|
|
8,462
|
|
|
4.92
|
%
|
||||||
CRE loans
|
|
3,231,369
|
|
|
132,898
|
|
|
4.06
|
%
|
|
2,831,870
|
|
|
100,563
|
|
|
3.50
|
%
|
|
2,297,224
|
|
|
70,048
|
|
|
3.00
|
%
|
||||||
Tax-exempt loans
|
|
1,146,493
|
|
|
29,567
|
|
|
2.58
|
%
|
|
891,922
|
|
|
23,057
|
|
|
2.59
|
%
|
|
617,701
|
|
|
16,707
|
|
|
2.70
|
%
|
||||||
Residential mortgage loans
|
|
3,447,710
|
|
|
108,825
|
|
|
3.16
|
%
|
|
2,803,464
|
|
|
83,537
|
|
|
2.94
|
%
|
|
2,217,789
|
|
|
64,607
|
|
|
2.87
|
%
|
||||||
SBL
|
|
2,689,612
|
|
|
111,403
|
|
|
4.09
|
%
|
|
2,123,189
|
|
|
72,400
|
|
|
3.36
|
%
|
|
1,713,243
|
|
|
51,515
|
|
|
2.96
|
%
|
||||||
Loans held for sale
|
|
125,970
|
|
|
5,057
|
|
|
4.01
|
%
|
|
159,384
|
|
|
5,156
|
|
|
3.34
|
%
|
|
150,305
|
|
|
4,551
|
|
|
3.07
|
%
|
||||||
Total bank loans, net
|
|
18,425,883
|
|
|
722,339
|
|
|
3.93
|
%
|
|
16,278,954
|
|
|
572,171
|
|
|
3.55
|
%
|
|
14,336,765
|
|
|
487,366
|
|
|
3.42
|
%
|
||||||
Loans to financial advisors, net
|
|
892,776
|
|
|
15,078
|
|
|
1.69
|
%
|
|
848,677
|
|
|
13,333
|
|
|
1.57
|
%
|
|
563,548
|
|
|
8,207
|
|
|
1.46
|
%
|
||||||
Corporate cash and all other
|
|
3,757,719
|
|
|
56,830
|
|
|
1.51
|
%
|
|
3,450,514
|
|
|
30,590
|
|
|
0.89
|
%
|
|
2,750,688
|
|
|
18,090
|
|
|
0.66
|
%
|
||||||
Total interest-earning assets
|
|
$
|
31,858,144
|
|
|
$
|
1,043,993
|
|
|
3.28
|
%
|
|
$
|
28,932,809
|
|
|
$
|
802,126
|
|
|
2.77
|
%
|
|
$
|
24,874,346
|
|
|
$
|
640,397
|
|
|
2.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Certificates of deposit
|
|
$
|
372,052
|
|
|
$
|
6,217
|
|
|
1.67
|
%
|
|
$
|
293,589
|
|
|
$
|
4,325
|
|
|
1.47
|
%
|
|
345,628
|
|
|
5,402
|
|
|
1.56
|
%
|
||
Money market, savings and Negotiable Order of Withdrawal (“NOW”) accounts
|
|
18,473,046
|
|
|
59,340
|
|
|
0.32
|
%
|
|
15,566,621
|
|
|
12,859
|
|
|
0.08
|
%
|
|
12,640,068
|
|
|
4,816
|
|
|
0.05
|
%
|
||||||
Securities borrowed
|
|
157,310
|
|
|
7,630
|
|
|
4.85
|
%
|
|
110,416
|
|
|
6,690
|
|
|
6.06
|
%
|
|
79,613
|
|
|
3,174
|
|
|
3.99
|
%
|
||||||
Trading instruments sold but not yet purchased
|
|
267,759
|
|
|
7,344
|
|
|
2.74
|
%
|
|
289,218
|
|
|
6,138
|
|
|
2.12
|
%
|
|
281,501
|
|
|
5,035
|
|
|
1.79
|
%
|
||||||
Brokerage client payables
|
|
4,167,919
|
|
|
15,367
|
|
|
0.37
|
%
|
|
4,678,445
|
|
|
4,884
|
|
|
0.10
|
%
|
|
4,291,632
|
|
|
2,084
|
|
|
0.05
|
%
|
||||||
Other borrowings
|
|
914,463
|
|
|
22,006
|
|
|
2.41
|
%
|
|
855,638
|
|
|
16,559
|
|
|
1.94
|
%
|
|
723,904
|
|
|
12,957
|
|
|
1.79
|
%
|
||||||
Senior notes payable
|
|
1,549,163
|
|
|
72,708
|
|
|
4.69
|
%
|
|
1,689,172
|
|
|
94,665
|
|
|
5.60
|
%
|
|
1,210,148
|
|
|
78,533
|
|
|
6.49
|
%
|
||||||
Other
|
|
366,182
|
|
|
10,891
|
|
|
2.97
|
%
|
|
267,794
|
|
|
7,658
|
|
|
2.86
|
%
|
|
241,454
|
|
|
4,055
|
|
|
1.68
|
%
|
||||||
Total interest-bearing liabilities
|
|
$
|
26,267,894
|
|
|
$
|
201,503
|
|
|
0.77
|
%
|
|
$
|
23,750,893
|
|
|
$
|
153,778
|
|
|
0.65
|
%
|
|
$
|
19,813,948
|
|
|
$
|
116,056
|
|
|
0.59
|
%
|
Net interest income
|
|
|
|
|
$
|
842,490
|
|
|
|
|
|
|
|
$
|
648,348
|
|
|
|
|
|
|
$
|
524,341
|
|
|
|
|
|
Year ended September 30,
|
|
% change
|
||||||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Securities commissions and fees:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fee-based accounts
|
|
$
|
2,540,336
|
|
|
$
|
2,040,839
|
|
|
$
|
1,589,124
|
|
|
24
|
%
|
|
28
|
%
|
Mutual funds
|
|
641,603
|
|
|
646,614
|
|
|
631,102
|
|
|
(1
|
)%
|
|
2
|
%
|
|||
Insurance and annuity products
|
|
413,591
|
|
|
385,493
|
|
|
377,329
|
|
|
7
|
%
|
|
2
|
%
|
|||
Equity products
|
|
325,514
|
|
|
303,015
|
|
|
240,855
|
|
|
7
|
%
|
|
26
|
%
|
|||
Fixed income products
|
|
112,509
|
|
|
118,062
|
|
|
95,908
|
|
|
(5
|
)%
|
|
23
|
%
|
|||
New issue sales credits
|
|
47,200
|
|
|
72,281
|
|
|
44,088
|
|
|
(35
|
)%
|
|
64
|
%
|
|||
Subtotal securities commissions and fees
|
|
4,080,753
|
|
|
3,566,304
|
|
|
2,978,406
|
|
|
14
|
%
|
|
20
|
%
|
|||
Interest income
|
|
193,105
|
|
|
152,711
|
|
|
107,281
|
|
|
26
|
%
|
|
42
|
%
|
|||
Account and service fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mutual fund and annuity service fees
|
|
331,543
|
|
|
290,661
|
|
|
255,405
|
|
|
14
|
%
|
|
14
|
%
|
|||
RJBDP fees - third-party banks
|
|
262,424
|
|
|
202,049
|
|
|
92,315
|
|
|
30
|
%
|
|
119
|
%
|
|||
Affiliate deposit account servicing fees from RJ Bank
|
|
91,720
|
|
|
67,981
|
|
|
43,145
|
|
|
35
|
%
|
|
58
|
%
|
|||
Client account and service fees
|
|
95,794
|
|
|
98,500
|
|
|
95,010
|
|
|
(3
|
)%
|
|
4
|
%
|
|||
Client transaction fees and other
|
|
22,658
|
|
|
25,103
|
|
|
23,156
|
|
|
(10
|
)%
|
|
8
|
%
|
|||
Subtotal account and service fees
|
|
804,139
|
|
|
684,294
|
|
|
509,031
|
|
|
18
|
%
|
|
34
|
%
|
|||
Other
|
|
42,834
|
|
|
34,279
|
|
|
32,000
|
|
|
25
|
%
|
|
7
|
%
|
|||
Total revenues
|
|
5,120,831
|
|
|
4,437,588
|
|
|
3,626,718
|
|
|
15
|
%
|
|
22
|
%
|
|||
Interest expense
|
|
(27,801
|
)
|
|
(15,955
|
)
|
|
(10,239
|
)
|
|
74
|
%
|
|
56
|
%
|
|||
Net revenues
|
|
5,093,030
|
|
|
4,421,633
|
|
|
3,616,479
|
|
|
15
|
%
|
|
22
|
%
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Sales commissions
|
|
3,050,539
|
|
|
2,653,287
|
|
|
2,193,099
|
|
|
15
|
%
|
|
21
|
%
|
|||
Admin & incentive compensation and benefit costs
|
|
835,662
|
|
|
713,043
|
|
|
595,541
|
|
|
17
|
%
|
|
20
|
%
|
|||
Communications and information processing
|
|
234,300
|
|
|
193,902
|
|
|
166,507
|
|
|
21
|
%
|
|
16
|
%
|
|||
Occupancy and equipment costs
|
|
154,020
|
|
|
146,394
|
|
|
125,555
|
|
|
5
|
%
|
|
17
|
%
|
|||
Business development
|
|
115,056
|
|
|
98,138
|
|
|
88,535
|
|
|
17
|
%
|
|
11
|
%
|
|||
Jay Peak matter
|
|
—
|
|
|
130,000
|
|
|
20,000
|
|
|
(100
|
)%
|
|
550
|
%
|
|||
Other
|
|
127,359
|
|
|
113,919
|
|
|
86,678
|
|
|
12
|
%
|
|
31
|
%
|
|||
Total non-interest expenses
|
|
4,516,936
|
|
|
4,048,683
|
|
|
3,275,915
|
|
|
12
|
%
|
|
24
|
%
|
|||
Pre-tax income
|
|
$
|
576,094
|
|
|
$
|
372,950
|
|
|
$
|
340,564
|
|
|
54
|
%
|
|
10
|
%
|
Client asset balances:
|
|
As of September 30,
|
|
% change
|
||||||||||||||
$ in billions
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||||||
PCG assets under administration
|
|
$
|
755.7
|
|
|
$
|
659.5
|
|
|
$
|
574.1
|
|
|
15
|
%
|
|
15
|
%
|
PCG assets in fee-based accounts
|
|
$
|
366.3
|
|
|
$
|
294.5
|
|
|
$
|
231.0
|
|
|
24
|
%
|
|
27
|
%
|
Financial advisors:
|
|
September 30,
|
|||||||
|
|
2018
|
|
2017
(2)
|
|
2016
|
|||
Employees
|
|
3,167
|
|
|
3,041
|
|
|
3,098
|
|
Independent contractors
|
|
4,646
|
|
(1)
|
4,305
|
|
|
4,048
|
|
Total advisors
|
|
7,813
|
|
|
7,346
|
|
|
7,146
|
|
(1)
|
Includes 126 registered individuals who met the requirements to be classified as financial advisors in fiscal year 2018 following our periodic review procedures.
|
(2)
|
During the year ended September 30, 2017, we refined the criteria to determine our financial advisor population, which resulted in a decrease in our previously reported counts of approximately 100 advisors as of the date of our adoption. The impact of the change in methodology did not have a significant impact on the fiscal 2016 period, and thus we have not revised the number of financial advisors reported in fiscal 2016.
|
Clients’ domestic cash sweep balances
|
|
As of
|
||||||||||
$ in millions
|
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||
RJBDP
|
|
|
|
|
|
|
||||||
RJ Bank
|
|
$
|
19,446
|
|
|
$
|
17,387
|
|
|
$
|
13,904
|
|
Third-party banks
|
|
15,564
|
|
|
20,704
|
|
|
23,890
|
|
|||
Subtotal RJBDP
|
|
35,010
|
|
|
38,091
|
|
|
37,794
|
|
|||
Money market funds
|
|
3,240
|
|
|
1,818
|
|
|
2,009
|
|
|||
Client Interest Program (“CIP”)
|
|
2,807
|
|
|
3,101
|
|
|
4,083
|
|
|||
Total clients’ domestic cash sweep balances
|
|
$
|
41,057
|
|
|
$
|
43,010
|
|
|
$
|
43,886
|
|
|
|
Year ended September 30,
|
|
% change
|
||||||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Securities commissions and fees:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
|
$
|
202,809
|
|
|
$
|
222,942
|
|
|
$
|
228,346
|
|
|
(9
|
)%
|
|
(2
|
)%
|
Fixed income
|
|
221,684
|
|
|
267,749
|
|
|
316,144
|
|
|
(17
|
)%
|
|
(15
|
)%
|
|||
Subtotal securities commissions and fees
|
|
424,493
|
|
|
490,691
|
|
|
544,490
|
|
|
(13
|
)%
|
|
(10
|
)%
|
|||
Equity underwriting fees
|
|
53,262
|
|
|
72,845
|
|
|
54,492
|
|
|
(27
|
)%
|
|
34
|
%
|
|||
Merger & acquisition and advisory fees
|
|
296,606
|
|
|
228,422
|
|
|
148,503
|
|
|
30
|
%
|
|
54
|
%
|
|||
Fixed income investment banking
|
|
39,430
|
|
|
43,234
|
|
|
41,024
|
|
|
(9
|
)%
|
|
5
|
%
|
|||
Tax credit funds syndication fees
|
|
51,464
|
|
|
54,098
|
|
|
59,424
|
|
|
(5
|
)%
|
|
(9
|
)%
|
|||
Subtotal investment banking
|
|
440,762
|
|
|
398,599
|
|
|
303,443
|
|
|
11
|
%
|
|
31
|
%
|
|||
Investment advisory fees
|
|
24,661
|
|
|
21,623
|
|
|
29,684
|
|
|
14
|
%
|
|
(27
|
)%
|
|||
Net trading profit
|
|
53,412
|
|
|
78,155
|
|
|
87,966
|
|
|
(32
|
)%
|
|
(11
|
)%
|
|||
Interest income
|
|
32,253
|
|
|
27,095
|
|
|
24,867
|
|
|
19
|
%
|
|
9
|
%
|
|||
Other
|
|
16,023
|
|
|
18,072
|
|
|
26,701
|
|
|
(11
|
)%
|
|
(32
|
)%
|
|||
Total revenues
|
|
991,604
|
|
|
1,034,235
|
|
|
1,017,151
|
|
|
(4
|
)%
|
|
2
|
%
|
|||
Interest expense
|
|
(27,831
|
)
|
|
(20,552
|
)
|
|
(15,435
|
)
|
|
35
|
%
|
|
33
|
%
|
|||
Net revenues
|
|
963,773
|
|
|
1,013,683
|
|
|
1,001,716
|
|
|
(5
|
)%
|
|
1
|
%
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Compensation, commissions and benefits
|
|
634,522
|
|
|
645,665
|
|
|
638,101
|
|
|
(2
|
)%
|
|
1
|
%
|
|||
Communications and information processing
|
|
73,448
|
|
|
70,140
|
|
|
72,305
|
|
|
5
|
%
|
|
(3
|
)%
|
|||
Occupancy and equipment costs
|
|
34,226
|
|
|
33,920
|
|
|
34,250
|
|
|
1
|
%
|
|
(1
|
)%
|
|||
Business development
|
|
45,292
|
|
|
38,389
|
|
|
39,892
|
|
|
18
|
%
|
|
(4
|
)%
|
|||
Losses and non-interest expenses of real estate partnerships held by consolidated VIEs
|
|
11,802
|
|
|
13,663
|
|
|
9,788
|
|
|
(14
|
)%
|
|
40
|
%
|
|||
Other
|
|
85,648
|
|
|
84,702
|
|
|
76,189
|
|
|
1
|
%
|
|
11
|
%
|
|||
Total non-interest expenses
|
|
884,938
|
|
|
886,479
|
|
|
870,525
|
|
|
—
|
|
|
2
|
%
|
|||
Income before taxes and including noncontrolling interests
|
|
78,835
|
|
|
127,204
|
|
|
131,191
|
|
|
(38
|
)%
|
|
(3
|
)%
|
|||
Noncontrolling interests
|
|
(11,812
|
)
|
|
(14,032
|
)
|
|
(7,982
|
)
|
|
(16
|
)%
|
|
76
|
%
|
|||
Pre-tax income excluding noncontrolling interests
|
|
$
|
90,647
|
|
|
$
|
141,236
|
|
|
$
|
139,173
|
|
|
(36
|
)%
|
|
1
|
%
|
|
|
Year ended September 30,
|
|
% change
|
||||||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment advisory and related administrative fees:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Managed programs
|
|
$
|
454,027
|
|
|
$
|
326,405
|
|
|
$
|
270,623
|
|
|
39
|
%
|
|
21
|
%
|
Non-discretionary asset-based administration
|
|
115,562
|
|
|
91,087
|
|
|
74,130
|
|
|
27
|
%
|
|
23
|
%
|
|||
Subtotal investment advisory and related administrative fees
|
|
569,589
|
|
|
417,492
|
|
|
344,753
|
|
|
36
|
%
|
|
21
|
%
|
|||
Account and service fees and other
|
|
84,829
|
|
|
70,243
|
|
|
59,668
|
|
|
21
|
%
|
|
18
|
%
|
|||
Total revenues
|
|
654,418
|
|
|
487,735
|
|
|
404,421
|
|
|
34
|
%
|
|
21
|
%
|
|||
Interest expense
|
|
(41
|
)
|
|
(77
|
)
|
|
(72
|
)
|
|
(47
|
)%
|
|
7
|
%
|
|||
Net revenues
|
|
654,377
|
|
|
487,658
|
|
|
404,349
|
|
|
34
|
%
|
|
21
|
%
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Compensation and benefits
|
|
169,993
|
|
|
123,119
|
|
|
112,998
|
|
|
38
|
%
|
|
9
|
%
|
|||
Communications and information processing
|
|
38,495
|
|
|
30,109
|
|
|
27,027
|
|
|
28
|
%
|
|
11
|
%
|
|||
Occupancy and equipment costs
|
|
7,360
|
|
|
5,046
|
|
|
4,423
|
|
|
46
|
%
|
|
14
|
%
|
|||
Business development
|
|
11,353
|
|
|
9,673
|
|
|
9,500
|
|
|
17
|
%
|
|
2
|
%
|
|||
Investment sub-advisory fees
|
|
89,784
|
|
|
75,497
|
|
|
56,751
|
|
|
19
|
%
|
|
33
|
%
|
|||
Other
|
|
93,697
|
|
|
67,509
|
|
|
57,911
|
|
|
39
|
%
|
|
17
|
%
|
|||
Total non-interest expenses
|
|
410,682
|
|
|
310,953
|
|
|
268,610
|
|
|
32
|
%
|
|
16
|
%
|
|||
Income before taxes and including noncontrolling interests
|
|
243,695
|
|
|
176,705
|
|
|
135,739
|
|
|
38
|
%
|
|
30
|
%
|
|||
Noncontrolling interests
|
|
8,359
|
|
|
4,969
|
|
|
3,581
|
|
|
68
|
%
|
|
39
|
%
|
|||
Pre-tax income excluding noncontrolling interests
|
|
$
|
235,336
|
|
|
$
|
171,736
|
|
|
$
|
132,158
|
|
|
37
|
%
|
|
30
|
%
|
|
|
September 30,
|
||||||||||
$ in millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Asset management services division of RJ&A (“AMS”)
|
|
$
|
83,289
|
|
|
$
|
69,962
|
|
|
$
|
54,349
|
|
Carillon Tower
|
|
63,330
|
|
|
31,831
|
|
|
27,380
|
|
|||
Subtotal financial assets under management
|
|
146,619
|
|
|
101,793
|
|
|
81,729
|
|
|||
Less: Assets managed for affiliated entities
|
|
(5,702
|
)
|
|
(5,397
|
)
|
|
(4,744
|
)
|
|||
Total financial assets under management
|
|
$
|
140,917
|
|
|
$
|
96,396
|
|
|
$
|
76,985
|
|
|
|
September 30,
|
||||||||||
$ in millions
|
|
2018
|
|
2017
|
|
2016
|
||||||
Equity
|
|
$
|
64,742
|
|
|
$
|
48,936
|
|
|
$
|
41,785
|
|
Fixed income
|
|
32,435
|
|
|
11,814
|
|
|
11,858
|
|
|||
Balanced
|
|
49,442
|
|
|
41,043
|
|
|
28,086
|
|
|||
Total financial assets under management
|
|
$
|
146,619
|
|
|
$
|
101,793
|
|
|
$
|
81,729
|
|
|
|
Year ended September 30,
|
|
||||||||||
$ in millions
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
Financial assets under management at beginning of year
|
|
$
|
101,793
|
|
|
$
|
81,729
|
|
|
$
|
69,093
|
|
|
Carillon Tower:
|
|
|
|
|
|
|
|
||||||
Scout Group acquisition
|
|
27,087
|
|
|
—
|
|
|
—
|
|
|
|||
Other - net inflows/(outflows)
|
|
(63
|
)
|
|
246
|
|
|
(1,159
|
)
|
|
|||
AMS - net inflows
|
|
9,279
|
|
|
9,666
|
|
|
7,486
|
|
(1)
|
|||
Net market appreciation/(depreciation) in asset values
|
|
8,523
|
|
|
10,152
|
|
|
6,309
|
|
|
|||
Financial assets under management at end of year
|
|
$
|
146,619
|
|
|
$
|
101,793
|
|
|
$
|
81,729
|
|
|
(1)
|
Includes approximately $2.0 billion of client assets resulting from our acquisition of Alex. Brown.
|
|
|
Year ended September 30,
|
|
% change
|
||||||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
792,970
|
|
|
$
|
609,971
|
|
|
$
|
501,967
|
|
|
30
|
%
|
|
22
|
%
|
Interest expense
|
|
(88,609
|
)
|
|
(35,175
|
)
|
|
(23,277
|
)
|
|
152
|
%
|
|
51
|
%
|
|||
Net interest income
|
|
704,361
|
|
|
574,796
|
|
|
478,690
|
|
|
23
|
%
|
|
20
|
%
|
|||
Other
|
|
22,314
|
|
|
17,874
|
|
|
15,276
|
|
|
25
|
%
|
|
17
|
%
|
|||
Net revenues
|
|
726,675
|
|
|
592,670
|
|
|
493,966
|
|
|
23
|
%
|
|
20
|
%
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Compensation and benefits
|
|
40,670
|
|
|
33,991
|
|
|
29,742
|
|
|
20
|
%
|
|
14
|
%
|
|||
Communications and information processing
|
|
9,713
|
|
|
7,946
|
|
|
7,090
|
|
|
22
|
%
|
|
12
|
%
|
|||
Loan loss provision
|
|
20,481
|
|
|
12,987
|
|
|
28,167
|
|
|
58
|
%
|
|
(54
|
)%
|
|||
FDIC insurance premiums
|
|
20,145
|
|
|
16,832
|
|
|
15,478
|
|
|
20
|
%
|
|
9
|
%
|
|||
Affiliate deposit account servicing fees to PCG
|
|
91,720
|
|
|
67,981
|
|
|
43,145
|
|
|
35
|
%
|
|
58
|
%
|
|||
Other
|
|
52,167
|
|
|
43,630
|
|
|
33,048
|
|
|
20
|
%
|
|
32
|
%
|
|||
Total non-interest expenses
|
|
234,896
|
|
|
183,367
|
|
|
156,670
|
|
|
28
|
%
|
|
17
|
%
|
|||
Pre-tax income
|
|
$
|
491,779
|
|
|
$
|
409,303
|
|
|
$
|
337,296
|
|
|
20
|
%
|
|
21
|
%
|
|
|
Year ended September 30,
|
|||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||||||||
$ in thousands
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|
Average
balance
|
|
Interest
inc./exp.
|
|
Average
yield/
cost
|
|||||||||||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash
|
|
$
|
956,567
|
|
|
$
|
14,996
|
|
|
1.57
|
%
|
|
$
|
859,020
|
|
|
$
|
7,696
|
|
|
0.90
|
%
|
|
$
|
884,556
|
|
|
$
|
4,140
|
|
|
0.47
|
%
|
Available-for-sale securities
|
|
2,429,718
|
|
|
49,628
|
|
|
2.04
|
%
|
|
1,462,938
|
|
|
25,970
|
|
|
1.78
|
%
|
|
432,626
|
|
|
6,757
|
|
|
1.56
|
%
|
||||||
Bank loans, net of unearned income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
C&I loans
|
|
7,618,949
|
|
|
326,042
|
|
|
4.22
|
%
|
|
7,340,052
|
|
|
281,274
|
|
|
3.78
|
%
|
|
7,171,402
|
|
|
271,476
|
|
|
3.73
|
%
|
||||||
CRE construction loans
|
|
165,780
|
|
|
8,547
|
|
|
5.08
|
%
|
|
129,073
|
|
|
6,184
|
|
|
4.73
|
%
|
|
169,101
|
|
|
8,462
|
|
|
4.92
|
%
|
||||||
CRE loans
|
|
3,231,369
|
|
|
132,898
|
|
|
4.06
|
%
|
|
2,831,870
|
|
|
100,563
|
|
|
3.50
|
%
|
|
2,297,224
|
|
|
70,048
|
|
|
3.00
|
%
|
||||||
Tax-exempt loans
|
|
1,146,493
|
|
|
29,567
|
|
|
3.42
|
%
|
|
891,922
|
|
|
23,057
|
|
|
3.98
|
%
|
|
617,701
|
|
|
16,707
|
|
|
4.16
|
%
|
||||||
Residential mortgage loans
|
|
3,447,710
|
|
|
108,825
|
|
|
3.16
|
%
|
|
2,803,464
|
|
|
83,537
|
|
|
2.94
|
%
|
|
2,217,789
|
|
|
64,607
|
|
|
2.87
|
%
|
||||||
SBL
|
|
2,689,612
|
|
|
111,403
|
|
|
4.09
|
%
|
|
2,123,189
|
|
|
72,400
|
|
|
3.36
|
%
|
|
1,713,243
|
|
|
51,515
|
|
|
2.96
|
%
|
||||||
Loans held for sale
|
|
125,970
|
|
|
5,057
|
|
|
4.01
|
%
|
|
159,384
|
|
|
5,156
|
|
|
3.34
|
%
|
|
150,305
|
|
|
4,551
|
|
|
3.07
|
%
|
||||||
Total loans, net
|
|
18,425,883
|
|
|
722,339
|
|
|
3.93
|
%
|
|
16,278,954
|
|
|
572,171
|
|
|
3.55
|
%
|
|
14,336,765
|
|
|
487,366
|
|
|
3.42
|
%
|
||||||
FHLB stock, FRB stock, and other
|
|
138,635
|
|
|
6,007
|
|
|
4.33
|
%
|
|
157,395
|
|
|
4,134
|
|
|
2.63
|
%
|
|
186,589
|
|
|
3,704
|
|
|
1.98
|
%
|
||||||
Total interest-earning banking assets
|
|
21,950,803
|
|
|
$
|
792,970
|
|
|
3.62
|
%
|
|
18,758,307
|
|
|
$
|
609,971
|
|
|
3.28
|
%
|
|
15,840,536
|
|
|
$
|
501,967
|
|
|
3.18
|
%
|
|||
Non-interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized loss on available-for-sale securities
|
|
(44,104
|
)
|
|
|
|
|
|
|
|
(6,663
|
)
|
|
|
|
|
|
|
|
(3,172
|
)
|
|
|
|
|
|
|
||||||
Allowance for loan losses
|
|
(193,220
|
)
|
|
|
|
|
|
|
|
(194,029
|
)
|
|
|
|
|
|
(188,429
|
)
|
|
|
|
|
||||||||||
Other assets
|
|
379,461
|
|
|
|
|
|
|
|
|
374,769
|
|
|
|
|
|
|
|
|
281,961
|
|
|
|
|
|
|
|
||||||
Total non-interest-earning banking assets
|
|
142,137
|
|
|
|
|
|
|
|
|
174,077
|
|
|
|
|
|
|
|
|
90,360
|
|
|
|
|
|
|
|
||||||
Total banking assets
|
|
$
|
22,092,940
|
|
|
|
|
|
|
|
|
$
|
18,932,384
|
|
|
|
|
|
|
|
|
$
|
15,930,896
|
|
|
|
|
|
|
|
|||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Certificates of deposit
|
|
$
|
372,052
|
|
|
$
|
6,217
|
|
|
1.67
|
%
|
|
$
|
293,589
|
|
|
$
|
4,325
|
|
|
1.47
|
%
|
|
$
|
345,628
|
|
|
$
|
5,402
|
|
|
1.56
|
%
|
Savings, money market, and NOW accounts
|
|
18,693,862
|
|
|
62,628
|
|
|
0.34
|
%
|
|
15,975,308
|
|
|
16,230
|
|
|
0.10
|
%
|
|
13,238,007
|
|
|
7,087
|
|
|
0.05
|
%
|
||||||
FHLB advances and other
|
|
1,022,290
|
|
|
19,764
|
|
|
1.91
|
%
|
|
820,594
|
|
|
14,620
|
|
|
1.76
|
%
|
|
680,778
|
|
|
10,788
|
|
|
1.56
|
%
|
||||||
Total interest-bearing banking liabilities
|
|
20,088,204
|
|
|
$
|
88,609
|
|
|
0.44
|
%
|
|
17,089,491
|
|
|
$
|
35,175
|
|
|
0.20
|
%
|
|
14,264,413
|
|
|
$
|
23,277
|
|
|
0.16
|
%
|
|||
Non-interest-bearing banking liabilities
|
|
89,663
|
|
|
|
|
|
|
|
|
92,762
|
|
|
|
|
|
|
|
|
71,278
|
|
|
|
|
|
|
|
||||||
Total banking liabilities
|
|
20,177,867
|
|
|
|
|
|
|
|
|
17,182,253
|
|
|
|
|
|
|
|
|
14,335,691
|
|
|
|
|
|
|
|
||||||
Total banking shareholder’s equity
|
|
1,915,073
|
|
|
|
|
|
|
|
|
1,750,131
|
|
|
|
|
|
|
|
|
1,595,205
|
|
|
|
|
|
|
|
||||||
Total banking liabilities and shareholders’ equity
|
|
$
|
22,092,940
|
|
|
|
|
|
|
|
|
$
|
18,932,384
|
|
|
|
|
|
|
|
|
$
|
15,930,896
|
|
|
|
|
|
|
|
|||
Excess of interest-earning banking assets over interest-bearing banking liabilities/net interest income
|
|
$
|
1,862,599
|
|
|
$
|
704,361
|
|
|
|
|
$
|
1,668,816
|
|
|
$
|
574,796
|
|
|
|
|
$
|
1,576,123
|
|
|
$
|
478,690
|
|
|
|
|||
Bank net interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Spread
|
|
|
|
|
|
|
|
3.18
|
%
|
|
|
|
|
|
|
|
3.08
|
%
|
|
|
|
|
|
|
|
3.02
|
%
|
||||||
Margin (net yield on interest-earning banking assets)
|
|
|
|
|
|
|
|
3.22
|
%
|
|
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
|
|
3.04
|
%
|
||||||
Ratio of interest-earning banking assets to interest-bearing banking liabilities
|
|
|
|
|
|
|
|
109.27
|
%
|
|
|
|
|
|
|
|
109.77
|
%
|
|
|
|
|
|
|
|
111.05
|
%
|
|
|
Year ended September 30,
|
||||||||||||||||||||||
|
|
2018 compared to 2017
|
|
2017 compared to 2016
|
||||||||||||||||||||
|
|
Increase/(decrease) due to
|
|
Increase/(decrease) due to
|
||||||||||||||||||||
$ in thousands
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Interest revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-earning banking assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash
|
|
$
|
874
|
|
|
$
|
6,426
|
|
|
$
|
7,300
|
|
|
$
|
(120
|
)
|
|
$
|
3,676
|
|
|
$
|
3,556
|
|
Available-for-sale securities
|
|
17,162
|
|
|
6,496
|
|
|
23,658
|
|
|
13,682
|
|
|
5,531
|
|
|
19,213
|
|
||||||
Bank loans, net of unearned income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
10,687
|
|
|
34,081
|
|
|
44,768
|
|
|
6,384
|
|
|
3,414
|
|
|
9,798
|
|
||||||
CRE construction loans
|
|
1,759
|
|
|
604
|
|
|
2,363
|
|
|
(2,003
|
)
|
|
(275
|
)
|
|
(2,278
|
)
|
||||||
CRE loans
|
|
14,187
|
|
|
18,148
|
|
|
32,335
|
|
|
16,303
|
|
|
14,212
|
|
|
30,515
|
|
||||||
Tax-exempt loans
|
|
6,580
|
|
|
(70
|
)
|
|
6,510
|
|
|
7,416
|
|
|
(1,066
|
)
|
|
6,350
|
|
||||||
Residential mortgage loans
|
|
19,197
|
|
|
6,091
|
|
|
25,288
|
|
|
17,062
|
|
|
1,868
|
|
|
18,930
|
|
||||||
SBL
|
|
19,315
|
|
|
19,688
|
|
|
39,003
|
|
|
12,327
|
|
|
8,558
|
|
|
20,885
|
|
||||||
Loans held for sale
|
|
(1,081
|
)
|
|
982
|
|
|
(99
|
)
|
|
275
|
|
|
330
|
|
|
605
|
|
||||||
Total bank loans, net
|
|
70,644
|
|
|
79,524
|
|
|
150,168
|
|
|
57,764
|
|
|
27,041
|
|
|
84,805
|
|
||||||
FHLB stock, FRB stock and other
|
|
(493
|
)
|
|
2,366
|
|
|
1,873
|
|
|
(579
|
)
|
|
1,009
|
|
|
430
|
|
||||||
Total interest-earning banking assets
|
|
$
|
88,187
|
|
|
$
|
94,812
|
|
|
$
|
182,999
|
|
|
$
|
70,747
|
|
|
$
|
37,257
|
|
|
$
|
108,004
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing banking liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Bank deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Certificates of deposit
|
|
$
|
1,156
|
|
|
$
|
736
|
|
|
$
|
1,892
|
|
|
$
|
(814
|
)
|
|
$
|
(263
|
)
|
|
$
|
(1,077
|
)
|
Savings, money market, and NOW accounts
|
|
2,762
|
|
|
43,636
|
|
|
46,398
|
|
|
1,466
|
|
|
7,677
|
|
|
9,143
|
|
||||||
FHLB advances and other
|
|
3,594
|
|
|
1,550
|
|
|
5,144
|
|
|
2,216
|
|
|
1,616
|
|
|
3,832
|
|
||||||
Total interest-bearing banking liabilities
|
|
7,512
|
|
|
45,922
|
|
|
53,434
|
|
|
2,868
|
|
|
9,030
|
|
|
11,898
|
|
||||||
Change in net interest income
|
|
$
|
80,675
|
|
|
$
|
48,890
|
|
|
$
|
129,565
|
|
|
$
|
67,879
|
|
|
$
|
28,227
|
|
|
$
|
96,106
|
|
|
Year ended September 30,
|
|
% change
|
||||||||||||||
$ in thousands
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
41,577
|
|
|
$
|
24,998
|
|
|
$
|
16,977
|
|
|
66
|
%
|
|
47
|
%
|
Realized/unrealized gains - private equity investments
|
8,944
|
|
|
31,386
|
|
|
23,735
|
|
|
(72
|
)%
|
|
32
|
%
|
|||
Other
|
9,471
|
|
|
9,114
|
|
|
5,579
|
|
|
4
|
%
|
|
63
|
%
|
|||
Total revenues
|
59,992
|
|
|
65,498
|
|
|
46,291
|
|
|
(8
|
)%
|
|
41
|
%
|
|||
Interest expense
|
(75,148
|
)
|
|
(95,368
|
)
|
|
(77,983
|
)
|
|
(21
|
)%
|
|
22
|
%
|
|||
Net revenues
|
(15,156
|
)
|
|
(29,870
|
)
|
|
(31,692
|
)
|
|
49
|
%
|
|
6
|
%
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|||||||
Compensation and other
|
66,442
|
|
|
64,573
|
|
|
60,448
|
|
|
3
|
%
|
|
7
|
%
|
|||
Acquisition-related expenses
|
3,927
|
|
|
17,995
|
|
|
40,706
|
|
|
(78
|
)%
|
|
(56
|
)%
|
|||
Losses on extinguishment of debt
|
—
|
|
|
45,746
|
|
|
—
|
|
|
(100
|
)%
|
|
NM
|
|
|||
Total non-interest expenses
|
70,369
|
|
|
128,314
|
|
|
101,154
|
|
|
(45
|
)%
|
|
27
|
%
|
|||
Loss before taxes and including noncontrolling interests:
|
(85,525
|
)
|
|
(158,184
|
)
|
|
(132,846
|
)
|
|
46
|
%
|
|
(19
|
)%
|
|||
Noncontrolling interests
|
(2,324
|
)
|
|
11,695
|
|
|
15,702
|
|
|
|
|
|
|
|
|||
Pre-tax loss excluding noncontrolling interests
|
$
|
(83,201
|
)
|
|
$
|
(169,879
|
)
|
|
$
|
(148,548
|
)
|
|
51
|
%
|
|
(14
|
)%
|
|
|
Year ended September 30,
|
||||
|
|
2018
|
|
2017
|
|
2016
|
Return on average assets
|
|
2.4%
|
|
1.9%
|
|
1.9%
|
Return on average equity
|
|
14.4%
|
|
12.2%
|
|
11.3%
|
Average equity to average assets
|
|
16.5%
|
|
15.9%
|
|
16.6%
|
Dividend payout ratio
|
|
19.1%
|
|
20.3%
|
|
21.9%
|
$ in thousands
|
|
September 30, 2018
|
||
RJF
|
|
$
|
694,695
|
|
RJ&A
|
|
1,604,648
|
|
|
RJ Bank
|
|
354,131
|
|
|
RJ Ltd.
|
|
355,699
|
|
|
RJFS
|
|
136,951
|
|
|
Carillon Tower
|
|
100,443
|
|
|
Other subsidiaries
|
|
253,739
|
|
|
Total cash and cash equivalents
|
|
$
|
3,500,306
|
|
|
|
September 30, 2018
|
|||||||||||||
$ in thousands
|
|
RJ&A
|
|
RJF
|
|
Total
|
|
Total number of arrangements
|
|||||||
Financing arrangement:
|
|
|
|
|
|
|
|
|
|||||||
Committed secured
|
|
$
|
300,000
|
|
|
$
|
—
|
|
|
$
|
300,000
|
|
|
3
|
|
Committed unsecured
|
|
—
|
|
|
300,000
|
|
|
300,000
|
|
|
1
|
|
|||
Total committed financing arrangements
|
|
$
|
300,000
|
|
|
$
|
300,000
|
|
|
$
|
600,000
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|||||||
Outstanding borrowing amount:
|
|
|
|
|
|
|
|
|
|||||||
Committed secured
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Committed unsecured
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||
Total outstanding borrowing amount
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$ in thousands
|
|
September 30, 2018
|
||
Outstanding borrowing amount:
|
|
|
||
Uncommitted secured
|
|
$
|
186,205
|
|
Uncommitted unsecured
|
|
—
|
|
|
Total outstanding borrowing amount
|
|
$
|
186,205
|
|
|
|
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
|
||||||||||||
September 30, 2018
|
|
$
|
117,388
|
|
|
$
|
186,205
|
|
|
$
|
186,205
|
|
|
$
|
354,991
|
|
|
$
|
375,616
|
|
|
$
|
372,603
|
|
June 30, 2018
|
|
$
|
151,233
|
|
|
$
|
164,891
|
|
|
$
|
115,464
|
|
|
$
|
364,410
|
|
|
$
|
368,822
|
|
|
$
|
343,052
|
|
March 31, 2018
|
|
$
|
163,923
|
|
|
$
|
157,466
|
|
|
$
|
142,791
|
|
|
$
|
378,109
|
|
|
$
|
448,474
|
|
|
$
|
448,474
|
|
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
|
|
Rating Agency
|
Rating
|
Outlook
|
Standard & Poor’s Ratings Services
|
BBB+
|
Stable
|
Moody’s Investors Services
|
Baa1
|
Stable
|
|
|
|
|
Year ended September 30,
|
||||||||||||||||||||||||
$ in thousands
|
|
Total
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
||||||||||||||
Long-term debt obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Senior notes payable - principal
|
|
$
|
1,550,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,550,000
|
|
Long-term portion of other borrowings
|
|
893,837
|
|
|
—
|
|
|
855,430
|
|
|
30,748
|
|
|
6,084
|
|
|
1,575
|
|
|
—
|
|
|||||||
Long-term debt obligations
|
|
2,443,837
|
|
|
—
|
|
|
855,430
|
|
|
30,748
|
|
|
6,084
|
|
|
1,575
|
|
|
1,550,000
|
|
|||||||
Contractual interest payments
|
|
1,375,197
|
|
|
91,736
|
|
|
86,949
|
|
|
73,043
|
|
|
72,430
|
|
|
71,802
|
|
|
979,237
|
|
|||||||
Operating lease obligations
|
|
410,764
|
|
|
95,556
|
|
|
83,591
|
|
|
70,487
|
|
|
51,426
|
|
|
39,544
|
|
|
70,160
|
|
|||||||
Purchase obligations
|
|
271,548
|
|
|
140,679
|
|
|
50,264
|
|
|
25,745
|
|
|
12,072
|
|
|
9,858
|
|
|
32,930
|
|
|||||||
Other long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Certificates of deposit (including interest)
|
|
468,043
|
|
|
150,790
|
|
|
111,296
|
|
|
38,854
|
|
|
73,283
|
|
|
93,820
|
|
|
—
|
|
|||||||
Other
|
|
13,743
|
|
|
9,176
|
|
|
2,193
|
|
|
1,483
|
|
|
891
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal long-term liabilities
|
|
481,786
|
|
|
159,966
|
|
|
113,489
|
|
|
40,337
|
|
|
74,174
|
|
|
93,820
|
|
|
—
|
|
|||||||
Total contractual obligations
|
|
$
|
4,983,132
|
|
|
$
|
487,937
|
|
|
$
|
1,189,723
|
|
|
$
|
240,360
|
|
|
$
|
216,186
|
|
|
$
|
216,599
|
|
|
$
|
2,632,327
|
|
|
|
Year ended September 30, 2018
|
|
Period end VaR
|
|
Daily average VaR
|
||||||||||||||||||
$ in thousands
|
|
High
|
|
Low
|
|
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
||||||||||||
Daily VaR
|
|
$
|
3,917
|
|
|
$
|
654
|
|
|
$
|
1,204
|
|
|
$
|
1,427
|
|
|
$
|
1,437
|
|
|
$
|
1,827
|
|
Instantaneous changes in rate
|
|
Net interest income
($ in thousands)
|
|
Projected change in
net interest income
|
+200
|
|
$776,537
|
|
(6.51)%
|
+100
|
|
$804,936
|
|
(3.09)%
|
0
|
|
$830,600
|
|
—
|
-100
|
|
$766,500
|
|
(7.72)%
|
|
|
Due in
|
||||||||||||||
$ in thousands
|
|
One year or less
|
|
> One year – five
years
|
|
> 5 years
|
|
Total
|
||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
C&I loans
|
|
$
|
69,666
|
|
|
$
|
3,687,554
|
|
|
$
|
4,028,017
|
|
|
$
|
7,785,237
|
|
CRE construction loans
|
|
—
|
|
|
133,118
|
|
|
17,707
|
|
|
150,825
|
|
||||
CRE loans
|
|
429,584
|
|
|
2,489,507
|
|
|
705,316
|
|
|
3,624,407
|
|
||||
Tax-exempt loans
|
|
—
|
|
|
23,535
|
|
|
1,203,577
|
|
|
1,227,112
|
|
||||
Residential mortgage loans
|
|
898
|
|
|
2,907
|
|
|
3,752,804
|
|
|
3,756,609
|
|
||||
SBL
|
|
3,029,873
|
|
|
3,517
|
|
|
—
|
|
|
3,033,390
|
|
||||
Total loans held for investment
|
|
3,530,021
|
|
|
6,340,138
|
|
|
9,707,421
|
|
|
19,577,580
|
|
||||
Loans held for sale
|
|
—
|
|
|
12
|
|
|
153,661
|
|
|
153,673
|
|
||||
Total loans
|
|
$
|
3,530,021
|
|
|
$
|
6,340,150
|
|
|
$
|
9,861,082
|
|
|
$
|
19,731,253
|
|
|
|
Interest rate type
|
||||||||||
$ in thousands
|
|
Fixed
|
|
Adjustable
|
|
Total
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|||
C&I loans
|
|
$
|
17,884
|
|
|
$
|
7,697,687
|
|
|
$
|
7,715,571
|
|
CRE construction loans
|
|
—
|
|
|
150,825
|
|
|
150,825
|
|
|||
CRE loans
|
|
78,917
|
|
|
3,115,906
|
|
|
3,194,823
|
|
|||
Tax-exempt loans
|
|
1,195,212
|
|
|
31,900
|
|
|
1,227,112
|
|
|||
Residential mortgage loans
|
|
238,994
|
|
|
3,516,717
|
|
|
3,755,711
|
|
|||
SBL
|
|
3,517
|
|
|
—
|
|
|
3,517
|
|
|||
Total loans held for investment
|
|
1,534,524
|
|
|
14,513,035
|
|
|
16,047,559
|
|
|||
Loans held for sale
|
|
1,937
|
|
|
151,736
|
|
|
153,673
|
|
|||
Total loans
|
|
$
|
1,536,461
|
|
|
$
|
14,664,771
|
|
|
$
|
16,201,232
|
|
|
|
Year ended September 30,
|
||||||||||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Allowance for loan losses beginning of year
|
|
$
|
190,442
|
|
|
$
|
197,378
|
|
|
$
|
172,257
|
|
|
$
|
147,574
|
|
|
$
|
136,501
|
|
Provision for loan losses
|
|
20,481
|
|
|
12,987
|
|
|
28,167
|
|
|
23,570
|
|
|
13,565
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
C&I loans
|
|
(9,587
|
)
|
|
(26,088
|
)
|
|
(2,956
|
)
|
|
(1,191
|
)
|
|
(1,845
|
)
|
|||||
CRE loans
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||
Residential mortgage loans
|
|
(383
|
)
|
|
(918
|
)
|
|
(1,470
|
)
|
|
(1,667
|
)
|
|
(2,015
|
)
|
|||||
Total charge-offs
|
|
(10,002
|
)
|
|
(27,006
|
)
|
|
(4,426
|
)
|
|
(2,858
|
)
|
|
(3,876
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
C&I loans
|
|
4
|
|
|
340
|
|
|
—
|
|
|
611
|
|
|
16
|
|
|||||
CRE loans
|
|
—
|
|
|
5,013
|
|
|
—
|
|
|
3,773
|
|
|
80
|
|
|||||
Residential mortgage loans
|
|
2,320
|
|
|
1,001
|
|
|
1,417
|
|
|
1,231
|
|
|
2,033
|
|
|||||
Total recoveries
|
|
2,324
|
|
|
6,354
|
|
|
1,417
|
|
|
5,615
|
|
|
2,129
|
|
|||||
Net (charge-offs)/recoveries
|
|
(7,678
|
)
|
|
(20,652
|
)
|
|
(3,009
|
)
|
|
2,757
|
|
|
(1,747
|
)
|
|||||
Foreign exchange translation adjustment
|
|
(495
|
)
|
|
729
|
|
|
(37
|
)
|
|
(1,644
|
)
|
|
(745
|
)
|
|||||
Allowance for loan losses end of year
|
|
$
|
202,750
|
|
|
$
|
190,442
|
|
|
$
|
197,378
|
|
|
$
|
172,257
|
|
|
$
|
147,574
|
|
Allowance for loan losses to total bank loans outstanding
|
|
1.04
|
%
|
|
1.11
|
%
|
|
1.30
|
%
|
|
1.32
|
%
|
|
1.33
|
%
|
|
|
Year ended September 30,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
$ in thousands
|
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
|
Net loan
(charge-off)/recovery
amount
|
|
% of avg.
outstanding
loans
|
|||||||||
C&I loans
|
|
$
|
(9,583
|
)
|
|
0.13
|
%
|
|
$
|
(25,748
|
)
|
|
0.35
|
%
|
|
$
|
(2,956
|
)
|
|
0.04
|
%
|
CRE loans
|
|
(32
|
)
|
|
—
|
|
|
5,013
|
|
|
0.18
|
%
|
|
—
|
|
|
—
|
|
|||
Residential mortgage loans
|
|
1,937
|
|
|
0.06
|
%
|
|
83
|
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|||
Total
|
|
$
|
(7,678
|
)
|
|
0.04
|
%
|
|
$
|
(20,652
|
)
|
|
0.13
|
%
|
|
$
|
(3,009
|
)
|
|
0.02
|
%
|
|
|
Year ended September 30,
|
||||||||||||
|
|
2015
|
|
2014
|
||||||||||
$ 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
|
|
$
|
(580
|
)
|
|
0.01
|
%
|
|
$
|
(1,829
|
)
|
|
0.03
|
%
|
CRE loans
|
|
3,773
|
|
|
0.22
|
%
|
|
64
|
|
|
—
|
|
||
Residential mortgage loans
|
|
(436
|
)
|
|
0.02
|
%
|
|
18
|
|
|
—
|
|
||
Total
|
|
$
|
2,757
|
|
|
0.02
|
%
|
|
$
|
(1,747
|
)
|
|
0.02
|
%
|
|
|
September 30,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||
$ in thousands
|
|
Nonperforming
loan balance
|
|
Allowance for loan losses balance
|
|
Loan category as a % of total loans receivable
|
|
Nonperforming
loan balance
|
|
Allowance for
loan losses balance
|
|
Loan category as a % of total loans receivable
|
||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
C&I loans
|
|
$
|
1,558
|
|
|
$
|
(123,395
|
)
|
|
40
|
%
|
|
$
|
5,221
|
|
|
$
|
(119,901
|
)
|
|
43
|
%
|
CRE construction loans
|
|
—
|
|
|
(3,168
|
)
|
|
1
|
%
|
|
—
|
|
|
(1,421
|
)
|
|
1
|
%
|
||||
CRE loans
|
|
—
|
|
|
(46,811
|
)
|
|
18
|
%
|
|
—
|
|
|
(41,749
|
)
|
|
18
|
%
|
||||
Tax-exempt loans
|
|
—
|
|
|
(8,544
|
)
|
|
6
|
%
|
|
—
|
|
|
(6,381
|
)
|
|
6
|
%
|
||||
Residential mortgage loans
|
|
22,970
|
|
|
(16,886
|
)
|
|
19
|
%
|
|
33,749
|
|
|
(16,691
|
)
|
|
18
|
%
|
||||
SBL
|
|
—
|
|
|
(3,946
|
)
|
|
15
|
%
|
|
—
|
|
|
(4,299
|
)
|
|
14
|
%
|
||||
Loans held for sale
|
|
—
|
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
24,528
|
|
|
$
|
(202,750
|
)
|
|
100
|
%
|
|
$
|
38,970
|
|
|
$
|
(190,442
|
)
|
|
100
|
%
|
Total nonperforming loans as a % of RJ Bank total loans
|
|
0.12
|
%
|
|
|
|
|
|
0.23
|
%
|
|
|
|
|
|
|
September 30,
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||
$ in thousands
|
|
Nonperforming loan balance
|
|
Allowance for loan losses balance
|
|
Loan category as a % of total loans receivable
|
|
Nonperforming loan balance
|
|
Allowance for loan losses balance
|
|
Loan category as a % of total loans receivable
|
||||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
C&I loans
|
|
$
|
35,194
|
|
|
$
|
(137,701
|
)
|
|
48
|
%
|
|
$
|
—
|
|
|
$
|
(117,623
|
)
|
|
52
|
%
|
CRE construction loans
|
|
—
|
|
|
(1,614
|
)
|
|
1
|
%
|
|
—
|
|
|
(2,707
|
)
|
|
1
|
%
|
||||
CRE loans
|
|
4,230
|
|
|
(36,533
|
)
|
|
17
|
%
|
|
4,796
|
|
|
(30,486
|
)
|
|
16
|
%
|
||||
Tax-exempt loans
|
|
—
|
|
|
(4,100
|
)
|
|
5
|
%
|
|
—
|
|
|
(5,949
|
)
|
|
4
|
%
|
||||
Residential mortgage loans
|
|
41,783
|
|
|
(12,664
|
)
|
|
16
|
%
|
|
47,823
|
|
|
(12,526
|
)
|
|
15
|
%
|
||||
SBL
|
|
—
|
|
|
(4,766
|
)
|
|
12
|
%
|
|
—
|
|
|
(2,966
|
)
|
|
11
|
%
|
||||
Loans held for sale
|
|
—
|
|
|
—
|
|
|
1
|
%
|
|
—
|
|
|
—
|
|
|
1
|
%
|
||||
Total
|
|
$
|
81,207
|
|
|
$
|
(197,378
|
)
|
|
100
|
%
|
|
$
|
52,619
|
|
|
$
|
(172,257
|
)
|
|
100
|
%
|
Total nonperforming loans as a % of RJ Bank total loans
|
|
0.53
|
%
|
|
|
|
|
|
0.40
|
%
|
|
|
|
|
|
|
September 30,
|
|||||||||
|
|
2014
|
|||||||||
$ in thousands
|
|
Nonperforming loan balance
|
|
Allowance for loan losses balance
|
|
Loan category as a % of total loans receivable
|
|||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
||
C&I loans
|
|
$
|
—
|
|
|
$
|
(103,179
|
)
|
|
58
|
%
|
CRE construction loans
|
|
—
|
|
|
(1,594
|
)
|
|
1
|
%
|
||
CRE loans
|
|
18,876
|
|
|
(25,022
|
)
|
|
15
|
%
|
||
Tax-exempt loans
|
|
—
|
|
|
(1,380
|
)
|
|
1
|
%
|
||
Residential mortgage loans
|
|
61,789
|
|
|
(14,350
|
)
|
|
16
|
%
|
||
SBL
|
|
—
|
|
|
(2,049
|
)
|
|
9
|
%
|
||
Loans held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
$
|
80,665
|
|
|
$
|
(147,574
|
)
|
|
100
|
%
|
Total nonperforming loans as a % of RJ Bank total loans
|
|
0.73
|
%
|
|
|
|
|
|
|
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
|
|||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
First mortgage loans
|
|
$
|
2,214
|
|
|
$
|
12,541
|
|
|
$
|
14,755
|
|
|
0.06
|
%
|
|
0.33
|
%
|
|
0.39
|
%
|
Home equity loans/lines
|
|
23
|
|
|
122
|
|
|
145
|
|
|
0.09
|
%
|
|
0.46
|
%
|
|
0.55
|
%
|
|||
Total residential mortgage loans
|
|
$
|
2,237
|
|
|
$
|
12,663
|
|
|
$
|
14,900
|
|
|
0.06
|
%
|
|
0.33
|
%
|
|
0.39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
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
|
%
|
September 30, 2018
|
|
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
|
25.1%
|
|
4.8%
|
|
CA
|
23.8%
|
|
4.4%
|
FL
|
17.2%
|
|
3.3%
|
|
FL
|
18.9%
|
|
3.5%
|
NY
|
7.9%
|
|
1.5%
|
|
TX
|
7.8%
|
|
1.4%
|
TX
|
7.8%
|
|
1.5%
|
|
NY
|
6.8%
|
|
1.3%
|
CO
|
3.4%
|
|
0.6%
|
|
CO
|
3.4%
|
|
0.6%
|
|
September 30, 2018
|
|
September 30, 2017
|
Residential first mortgage loan weighted-average LTV/FICO
|
64%/763
|
|
65%/758
|
September 30, 2018
|
|
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
|
Office (real estate)
|
5.8%
|
|
3.8%
|
|
Office (real estate)
|
5.9%
|
|
4.0%
|
Hospitality
|
5.1%
|
|
3.3%
|
|
Retail real estate
|
5.3%
|
|
3.6%
|
Business systems and services
|
4.7%
|
|
3.1%
|
|
Consumer products and services
|
5.2%
|
|
3.5%
|
Consumer products and services
|
4.6%
|
|
3.0%
|
|
Hospitality
|
4.7%
|
|
3.2%
|
Retail real estate
|
4.3%
|
|
2.8%
|
|
Business systems and services
|
4.5%
|
|
3.1%
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
||||||||
|
|
September 30,
|
||||||
$ in thousands, except share amounts
|
|
2018
|
|
2017
|
||||
Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
3,500,306
|
|
|
$
|
3,669,672
|
|
Cash segregated pursuant to regulations
|
|
2,441,241
|
|
|
3,476,085
|
|
||
Securities purchased under agreements to resell
|
|
372,603
|
|
|
404,462
|
|
||
Securities borrowed
|
|
255,280
|
|
|
138,319
|
|
||
Financial instruments, at fair value:
|
|
|
|
|
|
|
||
Trading instruments (includes
$464,528
and $357,099 pledged as collateral)
|
|
702,390
|
|
|
564,263
|
|
||
Available-for-sale securities (includes
$19,672
and $- pledged as collateral)
|
|
2,696,366
|
|
|
2,188,282
|
|
||
Derivative assets
|
|
180,224
|
|
|
318,775
|
|
||
Private equity investments
|
|
147,158
|
|
|
198,779
|
|
||
Other investments (includes
$25,503
and $6,640 pledged as collateral)
|
|
202,202
|
|
|
220,980
|
|
||
Brokerage client receivables, net
|
|
3,342,534
|
|
|
2,766,771
|
|
||
Receivables from brokers, dealers and clearing organizations
|
|
256,965
|
|
|
268,021
|
|
||
Other receivables
|
|
582,918
|
|
|
652,769
|
|
||
Bank loans, net
|
|
19,518,100
|
|
|
17,006,795
|
|
||
Loans to financial advisors, net
|
|
934,420
|
|
|
873,272
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
|
107,405
|
|
|
111,743
|
|
||
Property and equipment, net
|
|
486,274
|
|
|
437,374
|
|
||
Deferred income taxes, net
|
|
203,125
|
|
|
313,486
|
|
||
Goodwill and identifiable intangible assets, net
|
|
639,097
|
|
|
493,183
|
|
||
Other assets
|
|
844,316
|
|
|
780,425
|
|
||
Total assets
|
|
$
|
37,412,924
|
|
|
$
|
34,883,456
|
|
|
|
|
|
|
||||
Liabilities and equity:
|
|
|
|
|
|
|
||
Bank deposits
|
|
$
|
19,941,507
|
|
|
$
|
17,732,362
|
|
Securities sold under agreements to repurchase
|
|
186,205
|
|
|
220,942
|
|
||
Securities loaned
|
|
422,785
|
|
|
383,953
|
|
||
Financial instruments sold but not yet purchased, at fair value:
|
|
|
|
|
||||
Trading instruments
|
|
235,342
|
|
|
221,449
|
|
||
Derivative liabilities
|
|
246,913
|
|
|
356,964
|
|
||
Brokerage client payables
|
|
5,624,810
|
|
|
5,411,829
|
|
||
Payables to brokers, dealers and clearing organizations
|
|
205,952
|
|
|
172,714
|
|
||
Accrued compensation, commissions and benefits
|
|
1,189,485
|
|
|
1,059,996
|
|
||
Other payables
|
|
458,884
|
|
|
567,045
|
|
||
Other borrowings
|
|
899,059
|
|
|
1,514,012
|
|
||
Senior notes payable
|
|
1,549,636
|
|
|
1,548,839
|
|
||
Total liabilities
|
|
30,960,578
|
|
|
29,190,105
|
|
||
Commitments and contingencies (see Note 17)
|
|
|
|
|
|
|
||
Equity
|
|
|
|
|
|
|
||
Preferred stock; $.10 par value; 10,000,000 shares authorized; -0- shares issued and outstanding
|
|
—
|
|
|
—
|
|
||
Common stock; $.01 par value; 350,000,000 shares authorized;
156,363,615
and 154,228,235 shares issued as of September 30, 2018 and 2017, respectively. Shares outstanding of
145,642,437
and 144,096,521 as of September 30, 2018 and 2017, respectively
|
|
1,563
|
|
|
1,542
|
|
||
Additional paid-in capital
|
|
1,808,042
|
|
|
1,645,397
|
|
||
Retained earnings
|
|
5,033,059
|
|
|
4,340,054
|
|
||
Treasury stock, at cost;
10,693,026
and 10,084,038 common shares as of September 30, 2018 and 2017, respectively
|
|
(447,274
|
)
|
|
(390,081
|
)
|
||
Accumulated other comprehensive loss
|
|
(26,929
|
)
|
|
(15,199
|
)
|
||
Total equity attributable to Raymond James Financial, Inc.
|
|
6,368,461
|
|
|
5,581,713
|
|
||
Noncontrolling interests
|
|
83,885
|
|
|
111,638
|
|
||
Total equity
|
|
6,452,346
|
|
|
5,693,351
|
|
||
Total liabilities and equity
|
|
$
|
37,412,924
|
|
|
$
|
34,883,456
|
|
|
|
Year ended September 30,
|
||||||||||
in thousands, except per share amounts
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Securities commissions and fees
|
|
$
|
4,483,040
|
|
|
$
|
4,020,910
|
|
|
$
|
3,498,615
|
|
Investment banking
|
|
440,811
|
|
|
398,675
|
|
|
304,155
|
|
|||
Investment advisory and related administrative fees
|
|
605,634
|
|
|
462,989
|
|
|
393,346
|
|
|||
Interest income
|
|
1,043,993
|
|
|
802,126
|
|
|
640,397
|
|
|||
Account and service fees
|
|
771,012
|
|
|
667,274
|
|
|
511,326
|
|
|||
Net trading profit
|
|
56,722
|
|
|
81,880
|
|
|
91,591
|
|
|||
Other
|
|
74,609
|
|
|
91,021
|
|
|
81,690
|
|
|||
Total revenues
|
|
7,475,821
|
|
|
6,524,875
|
|
|
5,521,120
|
|
|||
Interest expense
|
|
(201,503
|
)
|
|
(153,778
|
)
|
|
(116,056
|
)
|
|||
Net revenues
|
|
7,274,318
|
|
|
6,371,097
|
|
|
5,405,064
|
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|||
Compensation, commissions and benefits
|
|
4,795,375
|
|
|
4,228,387
|
|
|
3,624,607
|
|
|||
Communications and information processing
|
|
365,879
|
|
|
310,961
|
|
|
279,746
|
|
|||
Occupancy and equipment costs
|
|
201,943
|
|
|
190,737
|
|
|
167,455
|
|
|||
Business development
|
|
181,470
|
|
|
154,926
|
|
|
148,413
|
|
|||
Investment sub-advisory fees
|
|
92,388
|
|
|
78,656
|
|
|
59,930
|
|
|||
Bank loan loss provision
|
|
20,481
|
|
|
12,987
|
|
|
28,167
|
|
|||
Acquisition-related expenses
|
|
3,927
|
|
|
17,995
|
|
|
40,706
|
|
|||
Losses on extinguishment of debt
|
|
—
|
|
|
45,746
|
|
|
—
|
|
|||
Other
|
|
307,978
|
|
|
402,724
|
|
|
244,096
|
|
|||
Total non-interest expenses
|
|
5,969,441
|
|
|
5,443,119
|
|
|
4,593,120
|
|
|||
Income including noncontrolling interests and before provision for income taxes
|
|
1,304,877
|
|
|
927,978
|
|
|
811,944
|
|
|||
Provision for income taxes
|
|
453,960
|
|
|
289,111
|
|
|
271,293
|
|
|||
Net income including noncontrolling interests
|
|
850,917
|
|
|
638,867
|
|
|
540,651
|
|
|||
Net income/(loss) attributable to noncontrolling interests
|
|
(5,778
|
)
|
|
2,632
|
|
|
11,301
|
|
|||
Net income attributable to Raymond James Financial, Inc.
|
|
$
|
856,695
|
|
|
$
|
636,235
|
|
|
$
|
529,350
|
|
|
|
|
|
|
|
|
||||||
Earnings per common share – basic
|
|
$
|
5.89
|
|
|
$
|
4.43
|
|
|
$
|
3.72
|
|
Earnings per common share – diluted
|
|
$
|
5.75
|
|
|
$
|
4.33
|
|
|
$
|
3.65
|
|
Weighted-average common shares outstanding – basic
|
|
145,271
|
|
|
143,275
|
|
|
141,773
|
|
|||
Weighted-average common and common equivalent shares outstanding – diluted
|
|
148,838
|
|
|
146,647
|
|
|
144,513
|
|
|||
|
|
|
|
|
|
|
||||||
Net income attributable to Raymond James Financial, Inc.
|
|
$
|
856,695
|
|
|
$
|
636,235
|
|
|
$
|
529,350
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|||
Net change in unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses
|
|
(43,221
|
)
|
|
1,684
|
|
|
(5,576
|
)
|
|||
Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges
|
|
(3,315
|
)
|
|
15,618
|
|
|
2,179
|
|
|||
Net change in unrealized gain/(loss) on cash flow hedges
|
|
34,806
|
|
|
23,232
|
|
|
(11,833
|
)
|
|||
Total comprehensive income
|
|
$
|
844,965
|
|
|
$
|
676,769
|
|
|
$
|
514,120
|
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
|
||||||||||||
|
|
Year ended September 30,
|
||||||||||
$ in thousands, except per share amounts
|
|
2018
|
|
2017
|
|
2016
|
||||||
Common stock, par value $.01 per share:
|
|
|
|
|
|
|
||||||
Balance beginning of year
|
|
$
|
1,542
|
|
|
$
|
1,513
|
|
|
$
|
1,491
|
|
Share issuances
|
|
21
|
|
|
29
|
|
|
22
|
|
|||
Balance end of year
|
|
1,563
|
|
|
1,542
|
|
|
1,513
|
|
|||
|
|
|
|
|
|
|
||||||
Additional paid-in capital:
|
|
|
|
|
|
|
|
|
||||
Balance beginning of year
|
|
1,645,397
|
|
|
1,498,921
|
|
|
1,344,779
|
|
|||
Employee stock purchases
|
|
31,134
|
|
|
26,277
|
|
|
28,025
|
|
|||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
|
32,086
|
|
|
28,258
|
|
|
16,470
|
|
|||
Restricted stock, stock option and restricted stock unit expense
|
|
98,048
|
|
|
90,748
|
|
|
73,871
|
|
|||
Excess tax benefit from share-based payments
(1)
|
|
—
|
|
|
—
|
|
|
35,121
|
|
|||
Other
|
|
1,377
|
|
|
1,193
|
|
|
655
|
|
|||
Balance end of year
|
|
1,808,042
|
|
|
1,645,397
|
|
|
1,498,921
|
|
|||
|
|
|
|
|
|
|
||||||
Retained earnings:
|
|
|
|
|
|
|
|
|
||||
Balance beginning of year
|
|
4,340,054
|
|
|
3,834,781
|
|
|
3,422,169
|
|
|||
Net income attributable to Raymond James Financial, Inc.
|
|
856,695
|
|
|
636,235
|
|
|
529,350
|
|
|||
Cash dividends declared
|
|
(163,501
|
)
|
|
(130,643
|
)
|
|
(116,738
|
)
|
|||
Other
|
|
(189
|
)
|
|
(319
|
)
|
|
—
|
|
|||
Balance end of year
|
|
5,033,059
|
|
|
4,340,054
|
|
|
3,834,781
|
|
|||
|
|
|
|
|
|
|
||||||
Treasury stock:
|
|
|
|
|
|
|
|
|
||||
Balance beginning of year
|
|
(390,081
|
)
|
|
(362,937
|
)
|
|
(203,455
|
)
|
|||
Purchases/surrenders
|
|
(45,228
|
)
|
|
(9,404
|
)
|
|
(153,137
|
)
|
|||
Exercise of stock options and vesting of restricted stock units, net of forfeitures
|
|
(11,965
|
)
|
|
(17,740
|
)
|
|
(6,345
|
)
|
|||
Balance end of year
|
|
(447,274
|
)
|
|
(390,081
|
)
|
|
(362,937
|
)
|
|||
|
|
|
|
|
|
|
||||||
Accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
|
||||
Balance beginning of year
|
|
(15,199
|
)
|
|
(55,733
|
)
|
|
(40,503
|
)
|
|||
Net change in unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses, net of tax
|
|
(43,221
|
)
|
|
1,684
|
|
|
(5,576
|
)
|
|||
Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges, net of tax
|
|
(3,315
|
)
|
|
15,618
|
|
|
2,179
|
|
|||
Net change in unrealized gain on cash flow hedges, net of tax
|
|
34,806
|
|
|
23,232
|
|
|
(11,833
|
)
|
|||
Balance end of year
|
|
(26,929
|
)
|
|
(15,199
|
)
|
|
(55,733
|
)
|
|||
Total equity attributable to Raymond James Financial, Inc.
|
|
$
|
6,368,461
|
|
|
$
|
5,581,713
|
|
|
$
|
4,916,545
|
|
|
|
|
|
|
|
|
||||||
Noncontrolling interests:
|
|
|
|
|
|
|
|
|
||||
Balance beginning of year
|
|
$
|
111,638
|
|
|
$
|
146,431
|
|
|
$
|
154,454
|
|
Net income attributable to noncontrolling interests
|
|
(5,778
|
)
|
|
2,632
|
|
|
11,301
|
|
|||
Capital contributions
|
|
—
|
|
|
9,775
|
|
|
917
|
|
|||
Distributions
|
|
(21,904
|
)
|
|
(43,568
|
)
|
|
(18,312
|
)
|
|||
Derecognition resulting from sales
|
|
—
|
|
|
(4,649
|
)
|
|
—
|
|
|||
Other
|
|
(71
|
)
|
|
1,017
|
|
|
(1,929
|
)
|
|||
Balance end of year
|
|
83,885
|
|
|
111,638
|
|
|
146,431
|
|
|||
Total equity
|
|
$
|
6,452,346
|
|
|
$
|
5,693,351
|
|
|
$
|
5,062,976
|
|
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued from previous page)
|
||||||||||||
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Proceeds from borrowings on the RJF Credit Facility
|
|
300,000
|
|
|
—
|
|
|
—
|
|
|||
Repayment of borrowings on the RJF Credit Facility
|
|
(300,000
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from/(repayments of) short-term borrowings, net
|
|
(610,000
|
)
|
|
610,000
|
|
|
(115,000
|
)
|
|||
Proceeds from Federal Home Loan Bank advances
|
|
850,000
|
|
|
950,000
|
|
|
25,000
|
|
|||
Repayments of Federal Home Loan Bank advances and other borrowed funds
|
|
(854,952
|
)
|
|
(654,647
|
)
|
|
(4,407
|
)
|
|||
Proceeds from senior note issuances, net of debt issuance costs paid
|
|
—
|
|
|
508,473
|
|
|
792,221
|
|
|||
Extinguishment of senior notes payable
|
|
—
|
|
|
(650,000
|
)
|
|
(250,000
|
)
|
|||
Premium paid on extinguishment of senior notes payable
|
|
—
|
|
|
(36,892
|
)
|
|
—
|
|
|||
Acquisition-related contingent consideration (paid)/received, net
|
|
(6,888
|
)
|
|
2,992
|
|
|
—
|
|
|||
Exercise of stock options and employee stock purchases
|
|
63,347
|
|
|
57,462
|
|
|
43,331
|
|
|||
Increase in bank deposits
|
|
2,209,145
|
|
|
3,469,815
|
|
|
2,342,666
|
|
|||
Purchases of treasury stock
|
|
(61,971
|
)
|
|
(34,055
|
)
|
|
(162,502
|
)
|
|||
Dividends on common stock
|
|
(151,336
|
)
|
|
(127,202
|
)
|
|
(113,435
|
)
|
|||
Distributions to noncontrolling interests, net
|
|
(17,163
|
)
|
|
(31,383
|
)
|
|
(17,395
|
)
|
|||
Net cash provided by financing activities
|
|
1,420,182
|
|
|
4,064,563
|
|
|
2,540,479
|
|
|||
|
|
|
|
|
|
|
||||||
Currency adjustment:
|
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash
|
|
(16,961
|
)
|
|
24,791
|
|
|
188
|
|
|||
Net increase/(decrease) in cash and cash equivalents
|
|
(169,366
|
)
|
|
2,019,220
|
|
|
(950,554
|
)
|
|||
Cash and cash equivalents at beginning of year
|
|
3,669,672
|
|
|
1,650,452
|
|
|
2,601,006
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
3,500,306
|
|
|
$
|
3,669,672
|
|
|
$
|
1,650,452
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
||||||
Cash paid for interest
|
|
$
|
200,928
|
|
|
$
|
155,984
|
|
|
$
|
113,517
|
|
Cash paid for income taxes, net
|
|
$
|
231,136
|
|
|
$
|
349,009
|
|
|
$
|
303,793
|
|
a.
|
Commission revenues and related expenses from securities transactions are recorded on a trade date basis. Commission revenues are recorded at the amount charged to clients which, in certain cases, may include discounts.
|
b.
|
Fees earned by financial advisors who provide investment advisory services under various manners of affiliation with us. These fee revenues are computed as either a percentage of the assets in the client account, or a flat periodic fee charged to the client for investment advice and are recognized over the period in which the service is provided. Such fees are earned from the services provided by the financial advisors who affiliate with us.
|
i.
|
Investment advisory service fee revenues earned by employee financial advisors and independent contractors who offer such services under one of our subsidiary RIA licenses are presented in “Securities commissions and fees” revenue on a gross basis. These advisors’ compensation is calculated as a percentage of the revenues generated and is recorded as a component of “Compensation, commissions and benefits expense”.
|
ii.
|
Independent RIA firms owned and operated by a financial advisor who is an independent contractor, may receive administrative and custodial services from us. These firms operate under their own RIA license and pay a fee for services provided to the RIA and its clients. These fees are recorded in “Securities commissions and fees” revenue, net of the portion of the fees that are remitted to the independent RIA firm.
|
iii.
|
We may earn fees as a result of providing a custodial platform for unaffiliated independent RIA firms. These independent RIA firms operate under their own RIA license and pay for administrative and other services that we provide. These fees are recorded in “Securities commissions and fees” revenue, net of the portion of the fees that are remitted to the independent RIA firm.
|
c.
|
Trailing commissions from mutual funds and variable annuities/insurance products, which are recorded over the period earned.
|
d.
|
Insurance commission revenues and related expenses are recognized when the delivery of the insurance policy is confirmed by the carrier, the premium is remitted to the insurance company and the policy requirements are met.
|
e.
|
Annuity commission revenues and related expenses are recognized when the signed annuity application and premium is submitted to the annuity carrier.
|
•
|
the selection of proxy data used to calculate loss factors;
|
•
|
the evaluation of loss emergence and historical loss experience periods;
|
•
|
our evaluation of the risk profile of loan portfolio segments, including internal risk ratings;
|
•
|
the value of underlying collateral, which impacts loss severity and certain cash flow assumptions; and
|
•
|
our selection and evaluation of qualitative factors, which reflect the imprecision that is inherent in the estimation of probable loan losses.
|
Asset type
|
|
Estimated useful life
|
Buildings, buildings & land improvements and building components
|
|
10 to 31 years
|
Furniture, fixtures and equipment
|
|
3 to 5 years
|
Software
|
|
2 to 10 years
|
Leasehold improvements
|
|
Lesser of useful life or lease term
|
•
|
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.
|
•
|
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 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.
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Legal and regulatory
|
|
$
|
2,281
|
|
|
$
|
3,192
|
|
|
$
|
8,334
|
|
Severance
|
|
990
|
|
|
5,859
|
|
|
866
|
|
|||
Information systems integration costs
|
|
162
|
|
|
1,380
|
|
|
21,752
|
|
|||
Acquisition and integration-related incentive compensation costs
|
|
—
|
|
|
5,474
|
|
|
—
|
|
|||
Early termination costs of assumed contracts
|
|
—
|
|
|
1,329
|
|
|
—
|
|
|||
Post-closing purchase price contingency
|
|
—
|
|
|
(3,345
|
)
|
|
—
|
|
|||
DBRSU obligation and related hedge
|
|
—
|
|
|
770
|
|
|
4,837
|
|
|||
All other
|
|
494
|
|
|
3,336
|
|
|
4,917
|
|
|||
Total acquisition-related expenses
|
|
$
|
3,927
|
|
|
$
|
17,995
|
|
|
$
|
40,706
|
|
$ 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, 2018 |
||||||||||
Assets at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
1,206
|
|
|
$
|
247,712
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
248,918
|
|
Corporate obligations
|
|
10,184
|
|
|
99,938
|
|
|
—
|
|
|
—
|
|
|
110,122
|
|
|||||
Government and agency obligations
|
|
18,660
|
|
|
71,854
|
|
|
—
|
|
|
—
|
|
|
90,514
|
|
|||||
Agency MBS and CMOs
|
|
2,745
|
|
|
124,188
|
|
|
—
|
|
|
—
|
|
|
126,933
|
|
|||||
Non-agency CMOs and asset-backed securities (“ABS”)
|
|
—
|
|
|
68,712
|
|
|
4
|
|
|
—
|
|
|
68,716
|
|
|||||
Total debt securities
|
|
32,795
|
|
|
612,404
|
|
|
4
|
|
|
—
|
|
|
645,203
|
|
|||||
Equity securities
|
|
15,335
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
15,465
|
|
|||||
Brokered certificates of deposit
|
|
—
|
|
|
38,616
|
|
|
—
|
|
|
—
|
|
|
38,616
|
|
|||||
Other
|
|
23
|
|
|
2,005
|
|
|
1,078
|
|
|
—
|
|
|
3,106
|
|
|||||
Total trading instruments
|
|
48,153
|
|
|
653,155
|
|
|
1,082
|
|
|
—
|
|
|
702,390
|
|
|||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency MBS and CMOs
|
|
—
|
|
|
2,628,739
|
|
|
—
|
|
|
—
|
|
|
2,628,739
|
|
|||||
Other securities
|
|
942
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
942
|
|
|||||
ARS preferred
|
|
—
|
|
|
—
|
|
|
66,685
|
|
|
—
|
|
|
66,685
|
|
|||||
Total available-for-sale securities
|
|
942
|
|
|
2,628,739
|
|
|
66,685
|
|
|
—
|
|
|
2,696,366
|
|
|||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Matched book
|
|
—
|
|
|
160,345
|
|
|
—
|
|
|
—
|
|
|
160,345
|
|
|||||
Other
|
|
—
|
|
|
74,068
|
|
|
—
|
|
|
(55,330
|
)
|
|
18,738
|
|
|||||
Foreign exchange contracts
|
|
—
|
|
|
1,141
|
|
|
—
|
|
|
—
|
|
|
1,141
|
|
|||||
Total derivative assets
|
|
—
|
|
|
235,554
|
|
|
—
|
|
|
(55,330
|
)
|
|
180,224
|
|
|||||
Private equity investments
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Not measured at NAV
|
|
—
|
|
|
—
|
|
|
55,923
|
|
|
—
|
|
|
55,923
|
|
|||||
Measured at NAV
|
|
|
|
|
|
|
|
|
|
91,235
|
|
|||||||||
Total private equity investments
|
|
—
|
|
|
—
|
|
|
55,923
|
|
|
—
|
|
|
147,158
|
|
|||||
Other investments
|
|
200,786
|
|
|
618
|
|
|
798
|
|
|
—
|
|
|
202,202
|
|
|||||
Total assets at fair value on a recurring basis
|
|
$
|
249,881
|
|
|
$
|
3,518,066
|
|
|
$
|
124,488
|
|
|
$
|
(55,330
|
)
|
|
$
|
3,928,340
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets at fair value on a nonrecurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
9,661
|
|
|
$
|
18,634
|
|
|
$
|
—
|
|
|
$
|
28,295
|
|
Loans held for sale
|
|
—
|
|
|
40,015
|
|
|
—
|
|
|
—
|
|
|
40,015
|
|
|||||
Total bank loans, net
|
|
—
|
|
|
49,676
|
|
|
18,634
|
|
|
—
|
|
|
68,310
|
|
|||||
Other assets: OREO
|
|
—
|
|
|
575
|
|
|
—
|
|
|
—
|
|
|
575
|
|
|||||
Total assets at fair value on a nonrecurring basis
|
|
$
|
—
|
|
|
$
|
50,251
|
|
|
$
|
18,634
|
|
|
$
|
—
|
|
|
$
|
68,885
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(continued on next 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, 2018 |
||||||||||
Liabilities at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading instruments sold but not yet purchased
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal and provincial obligations
|
|
$
|
30
|
|
|
$
|
1,133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,163
|
|
Corporate obligations
|
|
1,597
|
|
|
24,776
|
|
|
—
|
|
|
—
|
|
|
26,373
|
|
|||||
Government obligations
|
|
194,476
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
194,476
|
|
|||||
Agency MBS and CMOs
|
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|||||
Non-agency MBS and CMOs
|
|
—
|
|
|
993
|
|
|
—
|
|
|
—
|
|
|
993
|
|
|||||
Total debt securities
|
|
196,174
|
|
|
26,902
|
|
|
—
|
|
|
—
|
|
|
223,076
|
|
|||||
Equity securities
|
|
5,525
|
|
|
153
|
|
|
—
|
|
|
—
|
|
|
5,678
|
|
|||||
Other
|
|
3
|
|
|
—
|
|
|
6,585
|
|
|
—
|
|
|
6,588
|
|
|||||
Total trading instruments sold but not yet purchased
|
|
201,702
|
|
|
27,055
|
|
|
6,585
|
|
|
—
|
|
|
235,342
|
|
|||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Matched book
|
|
—
|
|
|
160,345
|
|
|
—
|
|
|
—
|
|
|
160,345
|
|
|||||
Other
|
|
—
|
|
|
113,392
|
|
|
—
|
|
|
(46,853
|
)
|
|
66,539
|
|
|||||
Foreign exchange contracts
|
|
—
|
|
|
4,449
|
|
|
—
|
|
|
—
|
|
|
4,449
|
|
|||||
DBRSU obligation (equity)
|
|
—
|
|
|
15,580
|
|
|
—
|
|
|
—
|
|
|
15,580
|
|
|||||
Total derivative liabilities
|
|
—
|
|
|
293,766
|
|
|
—
|
|
|
(46,853
|
)
|
|
246,913
|
|
|||||
Total liabilities at fair value on a recurring basis
|
|
$
|
201,702
|
|
|
$
|
320,821
|
|
|
$
|
6,585
|
|
|
$
|
(46,853
|
)
|
|
$
|
482,255
|
|
$ 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
|
|
—
|
|
|
—
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Not measured at NAV
|
|
—
|
|
|
—
|
|
|
88,885
|
|
|
—
|
|
|
88,885
|
|
|||||
Measured at NAV
|
|
|
|
|
|
|
|
|
|
109,894
|
|
|||||||||
Total private equity investments
|
|
—
|
|
|
—
|
|
|
88,885
|
|
|
—
|
|
|
198,779
|
|
|||||
Other investments
|
|
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
|
|
—
|
|
|
11,285
|
|
|
—
|
|
|
—
|
|
|
11,285
|
|
|||||
Total bank loans, net
|
|
—
|
|
|
28,759
|
|
|
23,994
|
|
|
—
|
|
|
52,753
|
|
|||||
Other assets: OREO
|
|
—
|
|
|
880
|
|
|
—
|
|
|
—
|
|
|
880
|
|
|||||
Total assets at fair value on a nonrecurring basis
|
|
$
|
—
|
|
|
$
|
29,639
|
|
|
$
|
23,994
|
|
|
$
|
—
|
|
|
$
|
53,633
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(continued on next 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 |
||||||||||
(continued from previous page)
|
||||||||||||||||||||
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
|
|
Year ended September 30, 2018
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 and
ABS
|
|
Other
|
|
ARS -
preferred |
|
Private equity
investments
|
|
Other
investments
|
|
Other
|
||||||||||||
Fair value beginning of year
|
|
$
|
5
|
|
|
$
|
5,594
|
|
|
$
|
106,171
|
|
|
$
|
88,885
|
|
|
$
|
336
|
|
|
$
|
—
|
|
Total gains/(losses) for the year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
|
—
|
|
|
(2,607
|
)
|
|
4,684
|
|
|
(4,847
|
)
|
|
(91
|
)
|
|
(1,521
|
)
|
||||||
Included in other comprehensive income
|
|
—
|
|
|
—
|
|
|
1,279
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchases and contributions
|
|
—
|
|
|
82,060
|
|
|
—
|
|
|
—
|
|
|
762
|
|
|
2,199
|
|
||||||
Sales
|
|
—
|
|
|
(83,969
|
)
|
|
(45,449
|
)
|
|
(28,115
|
)
|
|
(209
|
)
|
|
(7,263
|
)
|
||||||
Distributions
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Fair value end of year
|
|
$
|
4
|
|
|
$
|
1,078
|
|
|
$
|
66,685
|
|
|
$
|
55,923
|
|
|
$
|
798
|
|
|
$
|
(6,585
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year
|
|
$
|
—
|
|
|
$
|
(315
|
)
|
|
$
|
—
|
|
|
$
|
(16,068
|
)
|
|
$
|
(300
|
)
|
|
$
|
(1,521
|
)
|
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,132
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Year ended September 30, 2017
Level 3 instruments at fair value |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
|
|
|
Available-for-sale securities
|
|
Private equity and other investments
|
||||||||||||||||||
$ in thousands
|
|
Non-agency
CMOs and
ABS
|
|
Other
|
|
ARS –
municipal obligations |
|
ARS -
preferred |
|
Private equity
investments
|
|
Other
investments
|
||||||||||||
Fair value beginning of year
|
|
$
|
7
|
|
|
$
|
6,020
|
|
|
$
|
25,147
|
|
|
$
|
100,018
|
|
|
$
|
83,165
|
|
|
$
|
441
|
|
Total gains/(losses) for the year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
|
1
|
|
|
(2,568
|
)
|
|
641
|
|
|
(84
|
)
|
|
8,343
|
|
|
118
|
|
||||||
Included in other comprehensive income
|
|
—
|
|
|
—
|
|
|
2,344
|
|
|
7,705
|
|
|
—
|
|
|
—
|
|
||||||
Purchases and contributions
|
|
—
|
|
|
67,316
|
|
|
—
|
|
|
—
|
|
|
5,245
|
|
|
217
|
|
||||||
Sales
|
|
—
|
|
|
(65,174
|
)
|
|
(28,132
|
)
|
|
(1,468
|
)
|
|
(168
|
)
|
|
(245
|
)
|
||||||
Distributions
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,700
|
)
|
|
—
|
|
||||||
Transfers:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(195
|
)
|
||||||
Fair value end of year
|
|
$
|
5
|
|
|
$
|
5,594
|
|
|
$
|
—
|
|
|
$
|
106,171
|
|
|
$
|
88,885
|
|
|
$
|
336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year
|
|
$
|
1
|
|
|
$
|
(1,626
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,331
|
|
|
$
|
118
|
|
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,705
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Level 3 financial instrument
$ in thousands |
|
Fair value at
September 30, 2018
|
|
Valuation technique(s)
|
|
Unobservable input
|
|
Range
(weighted-average)
|
|||
Recurring measurements
|
|
|
|
|
|
|
|
|
|||
ARS preferred
|
|
$
|
66,685
|
|
|
Discounted cash flow
|
|
Average discount rate
|
|
6.50% - 7.85% (7.13%)
|
|
|
|
|
|
|
|
|
Average interest rates applicable to future interest income
on the securities
(1)
|
|
4.13% - 5.51% (4.47%)
|
|
|
|
|
|
|
|
|
|
Prepayment year
(2)
|
|
2018 - 2021 (2021)
|
|
|
Private equity investments
(not measured at NAV)
|
|
$
|
43,012
|
|
|
Income approach - Discounted cash flow
|
|
Discount rate
|
|
25
|
%
|
|
|
|
|
|
|
Terminal EBITDA Multiple
|
|
10.0x
|
|
||
|
|
|
|
|
|
Terminal year
|
|
2022 - 2042 (2023)
|
|
||
|
|
$
|
12,911
|
|
|
Transaction price or other investment-specific events
(3)
|
|
Not meaningful
(3)
|
|
Not meaningful
(3)
|
|
Nonrecurring measurements
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans: impaired loans - residential
|
|
$
|
17,076
|
|
|
Discounted cash flow
|
|
Prepayment rate
|
|
7 yrs. - 12 yrs. (10.5 yrs.)
|
|
Bank loans: impaired loans - corporate
|
|
$
|
1,558
|
|
|
Collateral 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
|
|
$
|
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
|
|
5.25x - 7x (5.8x)
|
||
|
|
|
|
|
|
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)
|
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 investments are valued initially at transaction price and updated as other investment-specific events take place which indicate that a change in the carrying values of these investments is appropriate. Other investment-specific events include such events as our periodic review, significant transactions occur, new developments become known, or we receive information from a fund manager which allows us to update our proportionate share of net assets.
|
(4)
|
The valuation techniques used for the impaired corporate loan portfolio are appraisals or collateral value less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent.
|
$ in thousands
|
|
Recorded value
|
|
Unfunded commitment
|
||||
September 30, 2018
|
|
|
|
|
||||
Private equity investments measured at NAV
|
|
$
|
91,235
|
|
|
$
|
18,418
|
|
Private equity investments not measured at NAV
|
|
55,923
|
|
|
|
|||
Total private equity investments
|
|
$
|
147,158
|
|
|
|
||
|
|
|
|
|
||||
September 30, 2017
|
|
|
|
|
||||
Private equity investments measured at NAV
|
|
$
|
109,894
|
|
|
$
|
20,973
|
|
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
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
|
|
$
|
—
|
|
|
$
|
123,911
|
|
|
$
|
19,116,423
|
|
|
$
|
19,240,334
|
|
|
$
|
19,449,790
|
|
Loans to financial advisors, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
748,437
|
|
|
$
|
748,437
|
|
|
$
|
934,420
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank deposits
|
|
$
|
—
|
|
|
$
|
19,496,066
|
|
|
$
|
438,513
|
|
|
$
|
19,934,579
|
|
|
$
|
19,941,507
|
|
Other borrowings
|
|
$
|
—
|
|
|
$
|
23,900
|
|
|
$
|
—
|
|
|
$
|
23,900
|
|
|
$
|
23,966
|
|
Senior notes payable
|
|
$
|
—
|
|
|
$
|
1,557,728
|
|
|
$
|
—
|
|
|
$
|
1,557,728
|
|
|
$
|
1,549,636
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank loans, net
|
|
$
|
—
|
|
|
$
|
23,001
|
|
|
$
|
16,836,745
|
|
|
$
|
16,859,746
|
|
|
$
|
16,954,042
|
|
Loans to financial advisors, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
708,487
|
|
|
$
|
708,487
|
|
|
$
|
873,272
|
|
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
|
||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Agency MBS and CMOs
|
|
$
|
2,698,168
|
|
|
$
|
394
|
|
|
$
|
(69,823
|
)
|
|
$
|
2,628,739
|
|
Other securities
|
|
1,575
|
|
|
—
|
|
|
(633
|
)
|
|
942
|
|
||||
Total RJ Bank available-for-sale securities
|
|
2,699,743
|
|
|
394
|
|
|
(70,456
|
)
|
|
2,629,681
|
|
||||
ARS preferred
|
|
60,909
|
|
|
5,776
|
|
|
—
|
|
|
66,685
|
|
||||
Total available-for-sale securities
|
|
$
|
2,760,652
|
|
|
$
|
6,170
|
|
|
$
|
(70,456
|
)
|
|
$
|
2,696,366
|
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
101,674
|
|
|
4,497
|
|
|
—
|
|
|
106,171
|
|
||||
Total available-for-sale securities
|
|
$
|
2,192,402
|
|
|
$
|
6,422
|
|
|
$
|
(10,542
|
)
|
|
$
|
2,188,282
|
|
|
|
September 30, 2018
|
||||||||||||||||||
$ 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
|
|
$
|
2,656
|
|
|
$
|
245,214
|
|
|
$
|
898,553
|
|
|
$
|
1,551,745
|
|
|
$
|
2,698,168
|
|
Carrying value
|
|
2,641
|
|
|
239,247
|
|
|
876,432
|
|
|
1,510,419
|
|
|
2,628,739
|
|
|||||
Weighted-average yield
|
|
1.70
|
%
|
|
2.25
|
%
|
|
2.24
|
%
|
|
2.32
|
%
|
|
2.29
|
%
|
|
|
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, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency MBS and CMOs
|
|
$
|
1,102,652
|
|
|
$
|
(19,906
|
)
|
|
$
|
1,425,650
|
|
|
$
|
(49,917
|
)
|
|
$
|
2,528,302
|
|
|
$
|
(69,823
|
)
|
Other securities
|
|
—
|
|
|
—
|
|
|
942
|
|
|
(633
|
)
|
|
942
|
|
|
(633
|
)
|
||||||
Total
|
|
$
|
1,102,652
|
|
|
$
|
(19,906
|
)
|
|
$
|
1,426,592
|
|
|
$
|
(50,550
|
)
|
|
$
|
2,529,244
|
|
|
$
|
(70,456
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
)
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Amount related to credit losses on securities we held at the beginning of the year
|
|
$
|
—
|
|
|
$
|
8,107
|
|
|
$
|
11,847
|
|
Decreases to the amount related to credit losses for securities sold during the year
|
|
—
|
|
|
(8,107
|
)
|
|
(3,740
|
)
|
|||
Amount related to credit losses on securities we held at the end of the year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,107
|
|
|
|
September 30, 2018
|
|
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
|
|
$
|
160,345
|
|
|
$
|
160,345
|
|
|
$
|
2,415,615
|
|
|
$
|
288,035
|
|
|
$
|
288,035
|
|
|
$
|
2,766,488
|
|
Other
(1)
|
|
74,068
|
|
|
112,864
|
|
|
6,155,611
|
|
|
86,436
|
|
|
100,503
|
|
|
4,931,809
|
|
||||||
Foreign exchange contracts
|
|
1,141
|
|
|
1,454
|
|
|
549,188
|
|
|
3
|
|
|
530
|
|
|
437,783
|
|
||||||
DBRSU obligation (equity)
(2)
|
|
—
|
|
|
15,580
|
|
|
15,580
|
|
|
—
|
|
|
25,800
|
|
|
25,800
|
|
||||||
Subtotal
|
|
235,554
|
|
|
290,243
|
|
|
9,135,994
|
|
|
374,474
|
|
|
414,868
|
|
|
8,161,880
|
|
||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
—
|
|
|
528
|
|
|
850,000
|
|
|
—
|
|
|
1,390
|
|
|
850,000
|
|
||||||
Foreign exchange contracts
|
|
—
|
|
|
2,995
|
|
|
891,563
|
|
|
29
|
|
|
116
|
|
|
1,048,646
|
|
||||||
Subtotal
|
|
—
|
|
|
3,523
|
|
|
1,741,563
|
|
|
29
|
|
|
1,506
|
|
|
1,898,646
|
|
||||||
Total gross fair value/notional amount
|
|
235,554
|
|
|
293,766
|
|
|
$
|
10,877,557
|
|
|
374,503
|
|
|
416,374
|
|
|
$
|
10,060,526
|
|
||||
Offset in the Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Counterparty netting
|
|
(26,124
|
)
|
|
(26,124
|
)
|
|
|
|
(6,045
|
)
|
|
(6,045
|
)
|
|
|
||||||||
Cash collateral netting
|
|
(29,206
|
)
|
|
(20,729
|
)
|
|
|
|
(49,683
|
)
|
|
(53,365
|
)
|
|
|
||||||||
Total amounts offset
|
|
(55,330
|
)
|
|
(46,853
|
)
|
|
|
|
(55,728
|
)
|
|
(59,410
|
)
|
|
|
||||||||
Net amounts presented in the Statements of Financial Condition
|
|
180,224
|
|
|
246,913
|
|
|
|
|
318,775
|
|
|
356,964
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross amounts not offset in the Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial instruments
(3)
|
|
(162,480
|
)
|
|
(160,345
|
)
|
|
|
|
(293,340
|
)
|
|
(288,035
|
)
|
|
|
||||||||
Total
|
|
$
|
17,744
|
|
|
$
|
86,568
|
|
|
|
|
$
|
25,435
|
|
|
$
|
68,929
|
|
|
|
(2)
|
The DBRSU obligation is not subject to an enforceable master netting arrangement or other similar arrangement. However, we held shares of DB as an economic hedge against this obligation with a fair value of
$12 million
and
$19 million
as of
September 30, 2018
and
2017
, respectively, which are a component of “Other investments” on our Consolidated Statements of Financial Condition. See additional discussion of the DBRSUs in
Note 20
.
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Interest rate contracts (cash flow hedges)
|
|
$
|
34,806
|
|
|
$
|
23,232
|
|
|
$
|
(11,833
|
)
|
Foreign exchange contracts (net investment hedges)
|
|
27,771
|
|
|
(26,281
|
)
|
|
(6,721
|
)
|
|||
Total gains/(losses) recognized in AOCI, net of taxes
|
|
$
|
62,577
|
|
|
$
|
(3,049
|
)
|
|
$
|
(18,554
|
)
|
|
|
Location of gain/(loss) included in the
Consolidated Statements of
Income and Comprehensive Income
|
|
Gain/(loss) recognized during the
|
||||||||||
|
|
|
year ended September 30,
|
|||||||||||
$ in thousands
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
||||||
Matched book
|
|
Other revenues
|
|
$
|
104
|
|
|
$
|
36
|
|
|
$
|
92
|
|
Other
|
|
Net trading profit/other revenues
|
|
$
|
6,018
|
|
|
$
|
7,895
|
|
|
$
|
2,819
|
|
Foreign exchange contracts
|
|
Other revenues
|
|
$
|
18,091
|
|
|
$
|
(19,961
|
)
|
|
$
|
(2,662
|
)
|
DBRSU obligation (equity)
|
|
Compensation, commissions and benefits expense
|
|
$
|
8,192
|
|
|
$
|
(5,648
|
)
|
|
$
|
2,457
|
|
DBRSU obligation (equity)
|
|
Acquisition-related expenses
|
|
$
|
—
|
|
|
$
|
(2,383
|
)
|
|
$
|
—
|
|
|
|
Assets
|
|
Liabilities
|
||||||||||||
$ in thousands
|
|
Reverse repurchase agreements
|
|
Securities borrowed
|
|
Repurchase agreements
|
|
Securities loaned
|
||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts of recognized assets/liabilities
|
|
$
|
372,603
|
|
|
$
|
255,280
|
|
|
$
|
186,205
|
|
|
$
|
422,785
|
|
Gross amounts offset in the Consolidated Statements of Financial Condition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amounts presented in the Consolidated Statements of Financial Condition
|
|
372,603
|
|
|
255,280
|
|
|
186,205
|
|
|
422,785
|
|
||||
Gross amounts not offset in the Consolidated Statements of Financial Condition
|
|
(372,603
|
)
|
|
(247,860
|
)
|
|
(186,205
|
)
|
|
(407,975
|
)
|
||||
Net amount
|
|
$
|
—
|
|
|
$
|
7,420
|
|
|
$
|
—
|
|
|
$
|
14,810
|
|
September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Gross amounts of recognized assets/liabilities
|
|
$
|
404,462
|
|
|
$
|
138,319
|
|
|
$
|
220,942
|
|
|
$
|
383,953
|
|
Gross amounts offset in the Consolidated Statements of Financial Condition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amounts presented in the Consolidated Statements of Financial Condition
|
|
404,462
|
|
|
138,319
|
|
|
220,942
|
|
|
383,953
|
|
||||
Gross amounts not offset in the Consolidated Statements of Financial Condition
|
|
(404,462
|
)
|
|
(134,304
|
)
|
|
(220,942
|
)
|
|
(373,132
|
)
|
||||
Net amount
|
|
$
|
—
|
|
|
$
|
4,015
|
|
|
$
|
—
|
|
|
$
|
10,821
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Collateral we received that was available to be delivered or repledged
|
|
$
|
3,165,127
|
|
|
$
|
3,030,736
|
|
Collateral that we delivered or repledged
|
|
$
|
1,388,882
|
|
|
$
|
1,068,912
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Financial instruments owned, at fair value, pledged to counterparties that:
|
|
|
|
|
||||
Had the right to deliver or repledge
|
|
$
|
509,703
|
|
|
$
|
363,739
|
|
Did not have the right to deliver or repledge
|
|
$
|
64,614
|
|
|
$
|
44,930
|
|
Bank loans, net pledged at FHLB and the Federal Reserve
|
|
$
|
4,075,081
|
|
|
$
|
3,197,185
|
|
$ in thousands
|
|
Overnight and continuous
|
|
Up to 30 days
|
|
30-90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
||||||||||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agency obligations
|
|
$
|
102,140
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
102,140
|
|
Agency MBS and CMOs
|
|
84,065
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,065
|
|
|||||
Total repurchase agreements
|
|
186,205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
186,205
|
|
|||||
Securities loaned:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
422,785
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
422,785
|
|
|||||
Total
|
|
$
|
608,990
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
608,990
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase agreements:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agency obligations
|
|
$
|
107,284
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
107,284
|
|
Agency MBS and CMOs
|
|
113,658
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113,658
|
|
|||||
Total repurchase agreements
|
|
220,942
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
220,942
|
|
|||||
Securities loaned:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
383,953
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
383,953
|
|
|||||
Total
|
|
$
|
604,895
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
604,895
|
|
|
|
September 30,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
$ in thousands
|
|
Balance
|
|
%
|
|
Balance
|
|
%
|
|
Balance
|
|
%
|
|||||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
C&I loans
|
|
$
|
7,785,237
|
|
|
40
|
%
|
|
$
|
7,385,910
|
|
|
43
|
%
|
|
$
|
7,470,373
|
|
|
48
|
%
|
CRE construction loans
|
|
150,825
|
|
|
1
|
%
|
|
112,681
|
|
|
1
|
%
|
|
122,718
|
|
|
1
|
%
|
|||
CRE loans
|
|
3,624,407
|
|
|
18
|
%
|
|
3,106,290
|
|
|
18
|
%
|
|
2,554,071
|
|
|
17
|
%
|
|||
Tax-exempt loans
|
|
1,227,112
|
|
|
6
|
%
|
|
1,017,791
|
|
|
6
|
%
|
|
740,944
|
|
|
5
|
%
|
|||
Residential mortgage loans
|
|
3,756,609
|
|
|
19
|
%
|
|
3,148,730
|
|
|
18
|
%
|
|
2,441,569
|
|
|
16
|
%
|
|||
SBL
|
|
3,033,390
|
|
|
15
|
%
|
|
2,386,697
|
|
|
14
|
%
|
|
1,904,827
|
|
|
12
|
%
|
|||
Total loans held for investment
|
|
19,577,580
|
|
|
|
|
|
17,158,099
|
|
|
|
|
|
15,234,502
|
|
|
|
|
|||
Net unearned income and deferred expenses
|
|
(20,656
|
)
|
|
|
|
|
(31,178
|
)
|
|
|
|
|
(40,675
|
)
|
|
|
|
|||
Total loans held for investment, net
|
|
19,556,924
|
|
|
|
|
|
17,126,921
|
|
|
|
|
|
15,193,827
|
|
|
|
|
|||
Loans held for sale, net
|
|
163,926
|
|
|
1
|
%
|
|
70,316
|
|
|
—
|
|
|
214,286
|
|
|
1
|
%
|
|||
Total loans held for sale and investment
|
|
19,720,850
|
|
|
100
|
%
|
|
17,197,237
|
|
|
100
|
%
|
|
15,408,113
|
|
|
100
|
%
|
|||
Allowance for loan losses
|
|
(202,750
|
)
|
|
|
|
|
(190,442
|
)
|
|
|
|
|
(197,378
|
)
|
|
|
||||
Bank loans, net
|
|
$
|
19,518,100
|
|
|
|
|
|
$
|
17,006,795
|
|
|
|
|
|
$
|
15,210,735
|
|
|
|
|
|
September 30,
|
||||||||||||
|
|
2015
|
|
2014
|
||||||||||
$ in thousands
|
|
Balance
|
|
%
|
|
Balance
|
|
%
|
||||||
Loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
|
|||
C&I loans
|
|
$
|
6,928,018
|
|
|
52
|
%
|
|
$
|
6,422,347
|
|
|
58
|
%
|
CRE construction loans
|
|
162,356
|
|
|
1
|
%
|
|
94,195
|
|
|
1
|
%
|
||
CRE loans
|
|
2,054,154
|
|
|
16
|
%
|
|
1,689,163
|
|
|
15
|
%
|
||
Tax-exempt loans
|
|
484,537
|
|
|
4
|
%
|
|
122,218
|
|
|
1
|
%
|
||
Residential mortgage loans
|
|
1,962,614
|
|
|
15
|
%
|
|
1,751,747
|
|
|
16
|
%
|
||
SBL
|
|
1,481,504
|
|
|
11
|
%
|
|
1,023,748
|
|
|
9
|
%
|
||
Total loans held for investment
|
|
13,073,183
|
|
|
|
|
|
11,103,418
|
|
|
|
|
||
Net unearned income and deferred expenses
|
|
(32,424
|
)
|
|
|
|
|
(37,533
|
)
|
|
|
|
||
Total loans held for investment, net
|
|
13,040,759
|
|
|
|
|
|
11,065,885
|
|
|
|
|
||
Loans held for sale, net
|
|
119,519
|
|
|
1
|
%
|
|
45,988
|
|
|
—
|
|
||
Total loans held for sale and investment
|
|
13,160,278
|
|
|
100
|
%
|
|
11,111,873
|
|
|
100
|
%
|
||
Allowance for loan losses
|
|
(172,257
|
)
|
|
|
|
|
(147,574
|
)
|
|
|
|
||
Bank loans, net
|
|
$
|
12,988,021
|
|
|
|
|
|
$
|
10,964,299
|
|
|
|
|
$ in thousands
|
|
C&I loans
|
|
CRE loans
|
|
Residential mortgage loans
|
|
Total
|
||||||||
Year ended September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Purchases
|
|
$
|
467,534
|
|
|
$
|
144,818
|
|
|
$
|
303,030
|
|
|
$
|
915,382
|
|
Sales
|
|
$
|
212,752
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
212,752
|
|
Year ended September 30, 2017
|
|
|
|
|
|
|
||||||||||
Purchases
|
|
$
|
536,627
|
|
|
$
|
63,542
|
|
|
$
|
264,340
|
|
|
$
|
864,509
|
|
Sales
|
|
$
|
341,196
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
341,196
|
|
Year ended September 30, 2016
|
|
|
|
|
|
|
||||||||||
Purchases
|
|
$
|
457,503
|
|
|
$
|
24,869
|
|
|
$
|
371,710
|
|
|
$
|
854,082
|
|
Sales
|
|
$
|
172,968
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
172,968
|
|
$ in thousands
|
|
30-89
days and accruing
|
|
90 days
or more and accruing
|
|
Total past due and accruing
|
|
Nonaccrual
|
|
Current and accruing
|
|
Total loans held for
investment
|
||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,558
|
|
|
$
|
7,783,679
|
|
|
$
|
7,785,237
|
|
CRE construction loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150,825
|
|
|
150,825
|
|
||||||
CRE loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,624,407
|
|
|
3,624,407
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,227,112
|
|
|
1,227,112
|
|
||||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
First mortgage loans
|
|
1,289
|
|
|
—
|
|
|
1,289
|
|
|
22,848
|
|
|
3,706,769
|
|
|
3,730,906
|
|
||||||
Home equity loans/lines
|
|
23
|
|
|
—
|
|
|
23
|
|
|
122
|
|
|
25,558
|
|
|
25,703
|
|
||||||
SBL
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,033,390
|
|
|
3,033,390
|
|
||||||
Total loans held for investment, net
|
|
$
|
1,312
|
|
|
$
|
—
|
|
|
$
|
1,312
|
|
|
$
|
24,528
|
|
|
$
|
19,551,740
|
|
|
$
|
19,577,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
September 30,
|
||||||||||||||||||||||
|
|
2018
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,221
|
|
|
$
|
6,160
|
|
|
$
|
1,963
|
|
Residential - first mortgage loans
|
|
15,229
|
|
|
19,728
|
|
|
1,592
|
|
|
23,977
|
|
|
31,100
|
|
|
2,504
|
|
||||||
Total
|
|
15,229
|
|
|
19,728
|
|
|
1,592
|
|
|
29,198
|
|
|
37,260
|
|
|
4,467
|
|
||||||
Impaired loans without allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
C&I loans
|
|
1,558
|
|
|
1,700
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential - first mortgage loans
|
|
13,100
|
|
|
20,005
|
|
|
—
|
|
|
16,737
|
|
|
24,899
|
|
|
—
|
|
||||||
Total
|
|
14,658
|
|
|
21,705
|
|
|
—
|
|
|
16,737
|
|
|
24,899
|
|
|
—
|
|
||||||
Total impaired loans
|
|
$
|
29,887
|
|
|
$
|
41,433
|
|
|
$
|
1,592
|
|
|
$
|
45,935
|
|
|
$
|
62,159
|
|
|
$
|
4,467
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Average impaired loan balance:
|
|
|
|
|
|
|
||||||
C&I loans
|
|
$
|
4,048
|
|
|
$
|
17,540
|
|
|
$
|
18,112
|
|
CRE loans
|
|
—
|
|
|
694
|
|
|
4,474
|
|
|||
Residential - first mortgage loans
|
|
32,778
|
|
|
43,845
|
|
|
51,554
|
|
|||
Total
|
|
$
|
36,826
|
|
|
$
|
62,079
|
|
|
$
|
74,140
|
|
$ in thousands
|
|
Pass
|
|
Special mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C&I loans
|
|
$
|
7,678,521
|
|
|
$
|
47,933
|
|
|
$
|
58,783
|
|
|
$
|
—
|
|
|
$
|
7,785,237
|
|
CRE construction loans
|
|
139,696
|
|
|
11,129
|
|
|
—
|
|
|
—
|
|
|
150,825
|
|
|||||
CRE loans
|
|
3,547,382
|
|
|
44,151
|
|
|
32,874
|
|
|
—
|
|
|
3,624,407
|
|
|||||
Tax-exempt loans
|
|
1,227,112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,227,112
|
|
|||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage loans
|
|
3,692,524
|
|
|
8,046
|
|
|
30,336
|
|
|
—
|
|
|
3,730,906
|
|
|||||
Home equity loans/lines
|
|
25,578
|
|
|
3
|
|
|
122
|
|
|
—
|
|
|
25,703
|
|
|||||
SBL
|
|
3,033,390
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,033,390
|
|
|||||
Total
|
|
$
|
19,344,203
|
|
|
$
|
111,262
|
|
|
$
|
122,115
|
|
|
$
|
—
|
|
|
$
|
19,577,580
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|||||||||||
C&I loans
|
|
$
|
7,232,777
|
|
|
$
|
63,964
|
|
|
$
|
89,169
|
|
|
$
|
—
|
|
|
$
|
7,385,910
|
|
CRE construction loans
|
|
112,681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112,681
|
|
|||||
CRE loans
|
|
3,048,847
|
|
|
57,315
|
|
|
128
|
|
|
—
|
|
|
3,106,290
|
|
|||||
Tax-exempt loans
|
|
1,017,791
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,017,791
|
|
|||||
Residential mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First mortgage loans
|
|
3,068,290
|
|
|
8,467
|
|
|
45,515
|
|
|
—
|
|
|
3,122,272
|
|
|||||
Home equity loans/lines
|
|
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 loans
|
|
CRE
construction
loans
|
|
CRE loans
|
|
Tax-exempt loans
|
|
Residential
mortgage
loans
|
|
SBL
|
|
Total
|
||||||||||||||
Year ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of year
|
|
$
|
119,901
|
|
|
$
|
1,421
|
|
|
$
|
41,749
|
|
|
$
|
6,381
|
|
|
$
|
16,691
|
|
|
$
|
4,299
|
|
|
$
|
190,442
|
|
Provision/(benefit) for loan losses
|
|
13,426
|
|
|
1,747
|
|
|
5,240
|
|
|
2,163
|
|
|
(1,742
|
)
|
|
(353
|
)
|
|
20,481
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Charge-offs
|
|
(9,587
|
)
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
(383
|
)
|
|
—
|
|
|
(10,002
|
)
|
|||||||
Recoveries
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,320
|
|
|
—
|
|
|
2,324
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(9,583
|
)
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
1,937
|
|
|
—
|
|
|
(7,678
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
(349
|
)
|
|
—
|
|
|
(146
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(495
|
)
|
|||||||
Balance at end of year
|
|
$
|
123,395
|
|
|
$
|
3,168
|
|
|
$
|
46,811
|
|
|
$
|
8,544
|
|
|
$
|
16,886
|
|
|
$
|
3,946
|
|
|
$
|
202,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Year ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of year
|
|
$
|
137,701
|
|
|
$
|
1,614
|
|
|
$
|
36,533
|
|
|
$
|
4,100
|
|
|
$
|
12,664
|
|
|
$
|
4,766
|
|
|
$
|
197,378
|
|
Provision/(benefit) for loan losses
|
|
7,502
|
|
|
(101
|
)
|
|
(172
|
)
|
|
2,281
|
|
|
3,944
|
|
|
(467
|
)
|
|
12,987
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Charge-offs
|
|
(26,088
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(918
|
)
|
|
—
|
|
|
(27,006
|
)
|
|||||||
Recoveries
|
|
340
|
|
|
—
|
|
|
5,013
|
|
|
—
|
|
|
1,001
|
|
|
—
|
|
|
6,354
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(25,748
|
)
|
|
—
|
|
|
5,013
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
(20,652
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
446
|
|
|
(92
|
)
|
|
375
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
729
|
|
|||||||
Balance at end of year
|
|
$
|
119,901
|
|
|
$
|
1,421
|
|
|
$
|
41,749
|
|
|
$
|
6,381
|
|
|
$
|
16,691
|
|
|
$
|
4,299
|
|
|
$
|
190,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Year ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at beginning of year
|
|
$
|
117,623
|
|
|
$
|
2,707
|
|
|
$
|
30,486
|
|
|
$
|
5,949
|
|
|
$
|
12,526
|
|
|
$
|
2,966
|
|
|
$
|
172,257
|
|
Provision/(benefit) for loan losses
|
|
23,051
|
|
|
(1,023
|
)
|
|
5,997
|
|
|
(1,849
|
)
|
|
191
|
|
|
1,800
|
|
|
28,167
|
|
|||||||
Net (charge-offs)/recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Charge-offs
|
|
(2,956
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,470
|
)
|
|
—
|
|
|
(4,426
|
)
|
|||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,417
|
|
|
—
|
|
|
1,417
|
|
|||||||
Net (charge-offs)/recoveries
|
|
(2,956
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
(3,009
|
)
|
|||||||
Foreign exchange translation adjustment
|
|
(17
|
)
|
|
(70
|
)
|
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|||||||
Balance at end of year
|
|
$
|
137,701
|
|
|
$
|
1,614
|
|
|
$
|
36,533
|
|
|
$
|
4,100
|
|
|
$
|
12,664
|
|
|
$
|
4,766
|
|
|
$
|
197,378
|
|
|
|
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
|
||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
—
|
|
|
$
|
123,395
|
|
|
$
|
123,395
|
|
|
$
|
1,558
|
|
|
$
|
7,783,679
|
|
|
$
|
7,785,237
|
|
CRE construction loans
|
|
—
|
|
|
3,168
|
|
|
3,168
|
|
|
—
|
|
|
150,825
|
|
|
150,825
|
|
||||||
CRE loans
|
|
—
|
|
|
46,811
|
|
|
46,811
|
|
|
—
|
|
|
3,624,407
|
|
|
3,624,407
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
8,544
|
|
|
8,544
|
|
|
—
|
|
|
1,227,112
|
|
|
1,227,112
|
|
||||||
Residential mortgage loans
|
|
1,601
|
|
|
15,285
|
|
|
16,886
|
|
|
34,595
|
|
|
3,722,014
|
|
|
3,756,609
|
|
||||||
SBL
|
|
—
|
|
|
3,946
|
|
|
3,946
|
|
|
—
|
|
|
3,033,390
|
|
|
3,033,390
|
|
||||||
Total
|
|
$
|
1,601
|
|
|
$
|
201,149
|
|
|
$
|
202,750
|
|
|
$
|
36,153
|
|
|
$
|
19,541,427
|
|
|
$
|
19,577,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&I loans
|
|
$
|
1,963
|
|
|
$
|
117,938
|
|
|
$
|
119,901
|
|
|
$
|
5,221
|
|
|
$
|
7,380,689
|
|
|
$
|
7,385,910
|
|
CRE construction loans
|
|
—
|
|
|
1,421
|
|
|
1,421
|
|
|
—
|
|
|
112,681
|
|
|
112,681
|
|
||||||
CRE loans
|
|
—
|
|
|
41,749
|
|
|
41,749
|
|
|
—
|
|
|
3,106,290
|
|
|
3,106,290
|
|
||||||
Tax-exempt loans
|
|
—
|
|
|
6,381
|
|
|
6,381
|
|
|
—
|
|
|
1,017,791
|
|
|
1,017,791
|
|
||||||
Residential mortgage loans
|
|
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
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Investments in company-owned life insurance policies
|
|
$
|
605,289
|
|
|
$
|
504,108
|
|
Prepaid expenses
|
|
98,914
|
|
|
96,059
|
|
||
Investment in FHLB stock
|
|
52,187
|
|
|
52,187
|
|
||
Investment in FRB stock
|
|
24,706
|
|
|
24,706
|
|
||
Prepaid compensation arising from acquisitions
|
|
16,454
|
|
|
27,175
|
|
||
Guaranteed LIHTC Fund financing asset
|
|
9,792
|
|
|
15,786
|
|
||
Indemnification asset
|
|
4,095
|
|
|
26,160
|
|
||
All other
|
|
32,879
|
|
|
34,244
|
|
||
Total other assets
|
|
$
|
844,316
|
|
|
$
|
780,425
|
|
$ in thousands
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
||||
September 30, 2018
|
|
|
|
|
||||
Private Equity Interests
|
|
$
|
67,179
|
|
|
$
|
5,084
|
|
LIHTC fund in which RJ Bank is an investor member
|
|
53,149
|
|
|
257
|
|
||
Guaranteed LIHTC Fund
|
|
40,411
|
|
|
3,110
|
|
||
Other LIHTC funds
|
|
17,493
|
|
|
18,171
|
|
||
Restricted Stock Trust Fund
|
|
13,538
|
|
|
13,538
|
|
||
Total
|
|
$
|
191,770
|
|
|
$
|
40,160
|
|
|
|
|
|
|
||||
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
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
3,830
|
|
|
$
|
2,052
|
|
Cash segregated pursuant to regulations
|
|
3,020
|
|
|
4,590
|
|
||
Other receivables
|
|
1,215
|
|
|
168
|
|
||
Intercompany receivables
|
|
442
|
|
|
454
|
|
||
Private equity investments
|
|
62,275
|
|
|
101,905
|
|
||
Investments in real estate partnerships held by consolidated variable interest entities
|
|
107,405
|
|
|
111,743
|
|
||
Trust fund investment in RJF common stock
|
|
13,536
|
|
|
12,120
|
|
||
Other assets
|
|
47
|
|
|
41
|
|
||
Total assets
|
|
$
|
191,770
|
|
|
$
|
233,073
|
|
|
|
|
|
|
||||
Liabilities and equity:
|
|
|
|
|
|
|
||
Other payables
|
|
$
|
26,628
|
|
|
$
|
9,667
|
|
Intercompany payables
|
|
17,271
|
|
|
16,520
|
|
||
Total liabilities
|
|
43,899
|
|
|
26,187
|
|
||
RJF equity
|
|
70,066
|
|
|
101,445
|
|
||
Noncontrolling interests
|
|
77,805
|
|
|
105,441
|
|
||
Total equity
|
|
147,871
|
|
|
206,886
|
|
||
Total liabilities and equity
|
|
$
|
191,770
|
|
|
$
|
233,073
|
|
|
|
September 30,
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||
$ in thousands
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
|
Aggregate
assets
|
|
Aggregate
liabilities
|
|
Our risk
of loss
|
||||||||||||
Private Equity Interests
|
|
$
|
6,907,827
|
|
|
$
|
154,301
|
|
|
$
|
68,053
|
|
|
$
|
10,485,611
|
|
|
$
|
174,354
|
|
|
$
|
73,457
|
|
LIHTC funds
|
|
5,692,112
|
|
|
1,912,110
|
|
|
93,270
|
|
|
5,372,367
|
|
|
2,134,600
|
|
|
60,959
|
|
||||||
NMTC funds
|
|
13,878
|
|
|
141
|
|
|
7
|
|
|
30,297
|
|
|
105
|
|
|
9
|
|
||||||
Other
|
|
196,939
|
|
|
113,344
|
|
|
4,044
|
|
|
169,462
|
|
|
88,615
|
|
|
3,163
|
|
||||||
Total
|
|
$
|
12,810,756
|
|
|
$
|
2,179,896
|
|
|
$
|
165,374
|
|
|
$
|
16,057,737
|
|
|
$
|
2,397,674
|
|
|
$
|
137,588
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Land
|
|
$
|
29,079
|
|
|
$
|
29,079
|
|
Software, including development in progress
|
|
417,390
|
|
|
345,734
|
|
||
Buildings, leasehold and land improvements
|
|
350,144
|
|
|
324,452
|
|
||
Furniture, fixtures and equipment
|
|
247,548
|
|
|
224,418
|
|
||
Construction in process
|
|
16,461
|
|
|
12,056
|
|
||
Total property and equipment
|
|
1,060,622
|
|
|
935,739
|
|
||
Less: Accumulated depreciation and amortization
|
|
(574,348
|
)
|
|
(498,365
|
)
|
||
Total property and equipment, net
|
|
$
|
486,274
|
|
|
$
|
437,374
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Goodwill
|
|
$
|
478,251
|
|
|
$
|
410,723
|
|
Identifiable intangible assets, net
|
|
160,846
|
|
|
82,460
|
|
||
Total goodwill and identifiable intangible assets, net
|
|
$
|
639,097
|
|
|
$
|
493,183
|
|
$ in thousands
|
|
Private Client Group
|
|
Capital
Markets
|
|
Asset
Management
|
|
Total
|
||||||||
Year ended September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Goodwill as of beginning of year
|
|
$
|
276,713
|
|
|
$
|
134,010
|
|
|
$
|
—
|
|
|
$
|
410,723
|
|
Additions
|
|
—
|
|
|
—
|
|
|
69,234
|
|
|
69,234
|
|
||||
Foreign currency translations
|
|
(837
|
)
|
|
(869
|
)
|
|
—
|
|
|
(1,706
|
)
|
||||
Goodwill as of end of year
|
|
$
|
275,876
|
|
|
$
|
133,141
|
|
|
$
|
69,234
|
|
|
$
|
478,251
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year ended September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Goodwill as of beginning of year
|
|
$
|
275,521
|
|
|
$
|
132,551
|
|
|
$
|
—
|
|
|
$
|
408,072
|
|
Foreign currency translations
|
|
1,192
|
|
|
1,459
|
|
|
—
|
|
|
2,651
|
|
||||
Goodwill as of end of year
|
|
$
|
276,713
|
|
|
$
|
134,010
|
|
|
$
|
—
|
|
|
$
|
410,723
|
|
|
|
|
|
|
|
Key assumptions
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
Weight assigned to the outcome of:
|
|||||||
Segment
|
|
Reporting unit
|
|
Goodwill as of December 31, 2017
($ in thousands)
|
|
Discount rate used in the income approach
|
|
Multiple applied to revenue/EPS in the market approach
|
|
Income approach
|
|
Market approach
|
|||||
Private Client Group
|
|
RJ Ltd. Private Client Group
|
|
$
|
24,285
|
|
|
14.3
|
%
|
|
1.2x/13.8x
|
|
75
|
%
|
|
25
|
%
|
Capital Markets
|
|
RJ Ltd. Capital Markets
|
|
$
|
20,293
|
|
|
15.3
|
%
|
|
0.9x/14.2x
|
|
75
|
%
|
|
25
|
%
|
$ in thousands
|
|
Private Client Group
|
|
Capital Markets
|
|
Asset Management
|
|
Total
|
||||||||
Year ended September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Net identifiable intangible assets as of beginning of year
|
|
$
|
47,026
|
|
|
$
|
23,077
|
|
|
$
|
12,357
|
|
|
$
|
82,460
|
|
Additions
|
|
—
|
|
|
—
|
|
|
92,290
|
|
|
92,290
|
|
||||
Amortization expense
|
|
(5,929
|
)
|
|
(3,077
|
)
|
|
(4,667
|
)
|
|
(13,673
|
)
|
||||
Foreign currency translations
|
|
(52
|
)
|
|
—
|
|
|
(179
|
)
|
|
(231
|
)
|
||||
Net identifiable intangible assets as of end of year
|
|
$
|
41,045
|
|
|
$
|
20,000
|
|
|
$
|
99,801
|
|
|
$
|
160,846
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year ended September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Net identifiable intangible assets as of beginning of year
|
|
$
|
52,936
|
|
|
$
|
27,937
|
|
|
$
|
14,101
|
|
|
$
|
94,974
|
|
Amortization expense
|
|
(6,001
|
)
|
|
(4,845
|
)
|
|
(2,004
|
)
|
|
(12,850
|
)
|
||||
Foreign currency translations
|
|
91
|
|
|
(15
|
)
|
|
260
|
|
|
336
|
|
||||
Net identifiable intangible assets as of end of year
|
|
$
|
47,026
|
|
|
$
|
23,077
|
|
|
$
|
12,357
|
|
|
$
|
82,460
|
|
|
|
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
|
|
|
|
$
|
40,290
|
|
Non-amortizing customer relationships
|
|
Indefinite
|
|
52,000
|
|
|
Total intangible assets acquired
|
|
|
|
$
|
92,290
|
|
|
|
September 30,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
$ in thousands
|
|
Gross carrying value
|
|
Accumulated amortization
|
|
Gross carrying value
|
|
Accumulated amortization
|
||||||||
Customer relationships
|
|
$
|
133,483
|
|
|
$
|
(39,855
|
)
|
|
$
|
99,749
|
|
|
$
|
(31,098
|
)
|
Non-amortizing customer relationships
|
|
52,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Trade name
|
|
11,749
|
|
|
(3,588
|
)
|
|
8,366
|
|
|
(2,076
|
)
|
||||
Developed technology
|
|
3,430
|
|
|
(1,189
|
)
|
|
1,630
|
|
|
(706
|
)
|
||||
Intellectual property
|
|
523
|
|
|
(179
|
)
|
|
542
|
|
|
(131
|
)
|
||||
Non-compete agreements
|
|
2,902
|
|
|
(1,998
|
)
|
|
3,336
|
|
|
(1,551
|
)
|
||||
Seller relationship agreements
|
|
5,300
|
|
|
(1,732
|
)
|
|
5,300
|
|
|
(901
|
)
|
||||
Total
|
|
$
|
209,387
|
|
|
$
|
(48,541
|
)
|
|
$
|
118,923
|
|
|
$
|
(36,463
|
)
|
Fiscal year ended September 30,
|
|
$ in thousands
|
||
2019
|
|
$
|
13,596
|
|
2020
|
|
12,817
|
|
|
2021
|
|
12,063
|
|
|
2022
|
|
11,456
|
|
|
2023
|
|
10,409
|
|
|
Thereafter
|
|
48,505
|
|
|
Total
|
|
$
|
108,846
|
|
|
|
September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
$ in thousands
|
|
Balance
|
|
Weighted-average rate
|
|
Balance
|
|
Weighted-average rate
|
||||||
Savings and money market accounts
|
|
$
|
19,474,529
|
|
|
0.54
|
%
|
|
$
|
17,391,091
|
|
|
0.14
|
%
|
Certificates of deposit
|
|
445,442
|
|
|
2.03
|
%
|
|
314,685
|
|
|
1.60
|
%
|
||
NOW accounts
|
|
5,823
|
|
|
0.01
|
%
|
|
5,197
|
|
|
0.01
|
%
|
||
Demand deposits (non-interest-bearing)
|
|
15,713
|
|
|
—
|
|
|
21,389
|
|
|
—
|
|
||
Total bank deposits
|
|
$
|
19,941,507
|
|
|
0.57
|
%
|
|
$
|
17,732,362
|
|
|
0.17
|
%
|
|
|
September 30,
|
||||||||||||||
|
|
2018
|
|
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
|
|
$
|
29,611
|
|
|
$
|
16,960
|
|
|
$
|
8,704
|
|
|
$
|
4,132
|
|
Over three through six months
|
|
19,714
|
|
|
12,716
|
|
|
4,692
|
|
|
3,894
|
|
||||
Over six through twelve months
|
|
37,911
|
|
|
26,078
|
|
|
34,005
|
|
|
11,865
|
|
||||
Over one through two years
|
|
65,051
|
|
|
40,434
|
|
|
38,713
|
|
|
20,019
|
|
||||
Over two through three years
|
|
21,200
|
|
|
13,504
|
|
|
48,082
|
|
|
27,847
|
|
||||
Over three through four years
|
|
43,654
|
|
|
26,245
|
|
|
21,819
|
|
|
12,761
|
|
||||
Over four through five years
|
|
64,552
|
|
|
27,812
|
|
|
50,805
|
|
|
27,347
|
|
||||
Total
|
|
$
|
281,693
|
|
|
$
|
163,749
|
|
|
$
|
206,820
|
|
|
$
|
107,865
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Savings, money market, and NOW accounts
|
|
$
|
59,340
|
|
|
$
|
12,859
|
|
|
$
|
4,816
|
|
Certificates of deposit
|
|
6,217
|
|
|
4,325
|
|
|
5,402
|
|
|||
Total interest expense on deposits
|
|
$
|
65,557
|
|
|
$
|
17,184
|
|
|
$
|
10,218
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
FHLB advances
|
|
$
|
875,000
|
|
|
$
|
875,000
|
|
Unsecured lines of credit
|
|
—
|
|
|
350,000
|
|
||
Secured lines of credit
|
|
—
|
|
|
260,000
|
|
||
Mortgage notes payable and other
|
|
24,059
|
|
|
29,012
|
|
||
Total other borrowings
|
|
$
|
899,059
|
|
|
$
|
1,514,012
|
|
Fiscal year ended September 30,
|
|
$ in thousands
|
||
2019
|
|
$
|
5,222
|
|
2020
|
|
855,430
|
|
|
2021
|
|
30,748
|
|
|
2022
|
|
6,084
|
|
|
2023
|
|
1,575
|
|
|
Thereafter
|
|
—
|
|
|
Total
|
|
$
|
899,059
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
5.625% senior notes, due 2024
|
|
$
|
250,000
|
|
|
$
|
250,000
|
|
3.625% senior notes, due 2026
|
|
500,000
|
|
|
500,000
|
|
||
4.95% senior notes, due 2046
|
|
800,000
|
|
|
800,000
|
|
||
Total principal amount
|
|
1,550,000
|
|
|
1,550,000
|
|
||
Unaccreted premium/(discount)
|
|
11,610
|
|
|
11,905
|
|
||
Unamortized debt issuance costs
|
|
(11,974
|
)
|
|
(13,066
|
)
|
||
Total senior notes payable
|
|
$
|
1,549,636
|
|
|
$
|
1,548,839
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Recorded in:
|
|
|
|
|
|
|
||||||
Net income including noncontrolling interests
|
|
$
|
453,960
|
|
|
$
|
289,111
|
|
|
$
|
271,293
|
|
Equity, arising from cash flow hedges recorded through other comprehensive income/(loss)
|
|
14,768
|
|
|
14,239
|
|
|
(7,252
|
)
|
|||
Equity, arising from currency translations, net of the impact of net investment hedges recorded through other comprehensive income/(loss)
|
|
10,135
|
|
|
(7,427
|
)
|
|
(3,525
|
)
|
|||
Equity, arising from available-for-sale securities recorded through other comprehensive income/(loss)
|
|
(18,875
|
)
|
|
856
|
|
|
(3,295
|
)
|
|||
Equity, arising from excess tax benefits from share-based payments
|
|
—
|
|
|
—
|
|
|
(35,121
|
)
|
|||
Total
|
|
$
|
459,988
|
|
|
$
|
296,779
|
|
|
$
|
222,100
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
258,480
|
|
|
$
|
255,555
|
|
|
$
|
287,350
|
|
State and local
|
|
64,507
|
|
|
37,553
|
|
|
32,101
|
|
|||
Foreign
|
|
14,424
|
|
|
7,620
|
|
|
10,640
|
|
|||
Total current
|
|
337,411
|
|
|
300,728
|
|
|
330,091
|
|
|||
Deferred:
|
|
|
|
|
|
|
||||||
Federal
|
|
120,870
|
|
|
(11,316
|
)
|
|
(51,383
|
)
|
|||
State and local
|
|
(4,456
|
)
|
|
(959
|
)
|
|
(6,267
|
)
|
|||
Foreign
|
|
135
|
|
|
658
|
|
|
(1,148
|
)
|
|||
Total deferred
|
|
116,549
|
|
|
(11,617
|
)
|
|
(58,798
|
)
|
|||
Total provision for income tax
|
|
$
|
453,960
|
|
|
$
|
289,111
|
|
|
$
|
271,293
|
|
|
|
Year ended September 30,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
Provision calculated at statutory rate
|
|
24.5
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Impact of Tax Act
|
|
8.1
|
%
|
|
—
|
|
|
—
|
|
State income tax, net of federal benefit
|
|
3.9
|
%
|
|
2.7
|
%
|
|
1.7
|
%
|
Tax-exempt interest income
|
|
(0.6
|
)%
|
|
(1.0
|
)%
|
|
(0.9
|
)%
|
Excess tax benefits related to share-based compensation
|
|
(0.9
|
)%
|
|
(2.5
|
)%
|
|
—
|
|
Gains on company-owned life insurance policies which are not subject to tax
|
|
(0.7
|
)%
|
|
(1.7
|
)%
|
|
(1.1
|
)%
|
Federal tax credits
|
|
(0.7
|
)%
|
|
(1.6
|
)%
|
|
(1.0
|
)%
|
Other, net
|
|
1.2
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
Total provision for income tax
|
|
34.8
|
%
|
|
31.2
|
%
|
|
33.9
|
%
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
U.S.
|
|
$
|
1,261,537
|
|
|
$
|
918,343
|
|
|
$
|
776,722
|
|
Foreign
|
|
43,340
|
|
|
9,635
|
|
|
35,222
|
|
|||
Income including noncontrolling interests and before provision for income taxes
|
|
$
|
1,304,877
|
|
|
$
|
927,978
|
|
|
$
|
811,944
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Deferred compensation
|
|
$
|
179,711
|
|
|
$
|
235,171
|
|
Allowances for loan losses and reserves for unfunded commitments
|
|
52,801
|
|
|
74,909
|
|
||
Unrealized loss associated with foreign currency translations
|
|
6,184
|
|
|
1,928
|
|
||
Unrealized loss associated with available-for-sale securities
|
|
20,059
|
|
|
3,342
|
|
||
Accrued expenses
|
|
36,200
|
|
|
41,545
|
|
||
Other
|
|
11,073
|
|
|
13,665
|
|
||
Total gross deferred tax assets
|
|
306,028
|
|
|
370,560
|
|
||
Less: valuation allowance
|
|
(10
|
)
|
|
(9
|
)
|
||
Total deferred tax assets
|
|
306,018
|
|
|
370,551
|
|
||
|
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
|
||||
Partnership investments
|
|
5,920
|
|
|
(6,326
|
)
|
||
Goodwill and identifiable intangible assets
|
|
(32,047
|
)
|
|
(38,364
|
)
|
||
Property and equipment
|
|
(59,972
|
)
|
|
(8,046
|
)
|
||
Other
|
|
(16,794
|
)
|
|
(4,329
|
)
|
||
Total deferred tax liabilities
|
|
(102,893
|
)
|
|
(57,065
|
)
|
||
Net deferred tax assets
|
|
$
|
203,125
|
|
|
$
|
313,486
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Uncertain tax positions beginning of year
|
|
$
|
20,006
|
|
|
$
|
22,173
|
|
|
$
|
22,454
|
|
Increases for tax positions related to the current year
|
|
5,119
|
|
|
3,238
|
|
|
6,496
|
|
|||
Increases for tax positions related to prior years
|
|
10,065
|
|
|
438
|
|
|
1,284
|
|
|||
Decreases for tax positions related to prior years
|
|
(1,177
|
)
|
|
(717
|
)
|
|
(1,592
|
)
|
|||
Decreases due to lapsed statute of limitations
|
|
(2,862
|
)
|
|
(2,497
|
)
|
|
(1,447
|
)
|
|||
Decreases related to settlements
|
|
(371
|
)
|
|
(2,629
|
)
|
|
(5,022
|
)
|
|||
Uncertain tax positions end of year
|
|
$
|
30,780
|
|
|
$
|
20,006
|
|
|
$
|
22,173
|
|
$ in thousands
|
|
September 30, 2018
|
|
September 30, 2017
|
||||
Open-end consumer lines of credit (primarily SBL)
|
|
$
|
7,331,544
|
|
|
$
|
5,323,003
|
|
Commercial lines of credit
|
|
$
|
1,643,213
|
|
|
$
|
1,673,272
|
|
Unfunded loan commitments
|
|
$
|
540,596
|
|
|
$
|
386,950
|
|
Standby letters of credit
|
|
$
|
41,260
|
|
|
$
|
39,670
|
|
Fiscal year ended September 30,
|
|
$ in thousands
|
||
2019
|
|
$
|
95,556
|
|
2020
|
|
83,591
|
|
|
2021
|
|
70,487
|
|
|
2022
|
|
51,426
|
|
|
2023
|
|
39,544
|
|
|
Thereafter
|
|
70,160
|
|
|
Total
|
|
$
|
410,764
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net change in unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses
|
|
$
|
(43,221
|
)
|
|
$
|
1,684
|
|
|
$
|
(5,576
|
)
|
Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges
|
|
(3,315
|
)
|
|
15,618
|
|
|
2,179
|
|
|||
Net change in unrealized gain/(loss) on cash flow hedges
|
|
34,806
|
|
|
23,232
|
|
|
(11,833
|
)
|
|||
Net other comprehensive income/(loss)
|
|
$
|
(11,730
|
)
|
|
$
|
40,534
|
|
|
$
|
(15,230
|
)
|
$ in thousands
|
|
Net investment hedges
|
|
Currency translations
|
|
Sub-total: net investment hedges and currency translations
|
|
Available-for-sale securities
|
|
Cash flow hedges
|
|
Total
|
||||||||||||
Year ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated other comprehensive income/(loss) as of the beginning of year
|
|
$
|
60,201
|
|
|
$
|
(79,677
|
)
|
|
$
|
(19,476
|
)
|
|
$
|
(2,472
|
)
|
|
$
|
6,749
|
|
|
$
|
(15,199
|
)
|
Other comprehensive income/(loss) before reclassifications and taxes
|
|
37,853
|
|
|
(31,086
|
)
|
|
6,767
|
|
|
(55,480
|
)
|
|
46,680
|
|
|
(2,033
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income/(loss), before tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,684
|
)
|
|
657
|
|
|
(4,027
|
)
|
||||||
Pre-tax net other comprehensive income/(loss)
|
|
37,853
|
|
|
(31,086
|
)
|
|
6,767
|
|
|
(60,164
|
)
|
|
47,337
|
|
|
(6,060
|
)
|
||||||
Income tax effect
|
|
(10,135
|
)
|
|
—
|
|
|
(10,135
|
)
|
|
18,875
|
|
|
(14,768
|
)
|
|
(6,028
|
)
|
||||||
Reclassification of tax effects related to the Tax Act
|
|
53
|
|
|
—
|
|
|
53
|
|
|
(1,932
|
)
|
|
2,237
|
|
|
358
|
|
||||||
Net other comprehensive income/(loss) for the year, net of tax
|
|
27,771
|
|
|
(31,086
|
)
|
|
(3,315
|
)
|
|
(43,221
|
)
|
|
34,806
|
|
|
(11,730
|
)
|
||||||
Accumulated other comprehensive income/(loss) as of the end of year
|
|
$
|
87,972
|
|
|
$
|
(110,763
|
)
|
|
$
|
(22,791
|
)
|
|
$
|
(45,693
|
)
|
|
$
|
41,555
|
|
|
$
|
(26,929
|
)
|
Year ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accumulated other comprehensive income/(loss) as of the beginning of year
|
|
$
|
86,482
|
|
|
$
|
(121,576
|
)
|
|
$
|
(35,094
|
)
|
|
$
|
(4,156
|
)
|
|
$
|
(16,483
|
)
|
|
$
|
(55,733
|
)
|
Other comprehensive income/(loss) before reclassifications and taxes
|
|
(41,997
|
)
|
|
43,541
|
|
|
1,544
|
|
|
443
|
|
|
31,843
|
|
|
33,830
|
|
||||||
Amounts reclassified from accumulated other comprehensive income/(loss), before tax
|
|
—
|
|
|
6,647
|
|
|
6,647
|
|
|
2,097
|
|
|
5,628
|
|
|
14,372
|
|
||||||
Pre-tax net other comprehensive income/(loss)
|
|
(41,997
|
)
|
|
50,188
|
|
|
8,191
|
|
|
2,540
|
|
|
37,471
|
|
|
48,202
|
|
||||||
Income tax effect
|
|
15,716
|
|
|
(8,289
|
)
|
|
7,427
|
|
|
(856
|
)
|
|
(14,239
|
)
|
|
(7,668
|
)
|
||||||
Net other comprehensive income/(loss) for the year, net of tax
|
|
(26,281
|
)
|
|
41,899
|
|
|
15,618
|
|
|
1,684
|
|
|
23,232
|
|
|
40,534
|
|
||||||
Accumulated other comprehensive income/(loss) as of the end of the year
|
|
$
|
60,201
|
|
|
$
|
(79,677
|
)
|
|
$
|
(19,476
|
)
|
|
$
|
(2,472
|
)
|
|
$
|
6,749
|
|
|
$
|
(15,199
|
)
|
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
|
||
Year ended September 30, 2018
|
|
|
|
|
||
Available-for-sale securities:
|
|
|
|
|
||
Auction rate securities
|
|
$
|
(4,684
|
)
|
|
Other revenue
|
RJ Bank cash flow hedges
|
|
657
|
|
|
Interest expense
|
|
Total before tax
|
|
(4,027
|
)
|
|
|
|
Income tax effect
|
|
1,118
|
|
|
Provision for income taxes
|
|
Total reclassifications for the year, net of tax
|
|
$
|
(2,909
|
)
|
|
|
Year ended September 30, 2017
|
|
|
|
|
||
Available-for-sale securities:
|
|
|
|
|
||
Auction rate securities
|
|
$
|
1,458
|
|
|
Other revenue
|
RJ Bank available-for-sale securities
|
|
639
|
|
|
Other revenue
|
|
RJ Bank cash flow hedges
|
|
5,628
|
|
|
Interest expense
|
|
Currency translations
|
|
6,647
|
|
|
Other expense
|
|
Total before tax
|
|
14,372
|
|
|
|
|
Income tax effect
|
|
(5,460
|
)
|
|
Provision for income taxes
|
|
Total reclassifications for the year, net of tax
|
|
$
|
8,912
|
|
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Cash segregated pursuant to regulations
|
|
$
|
52,561
|
|
|
$
|
37,270
|
|
|
$
|
22,287
|
|
Securities loaned
|
|
14,548
|
|
|
14,049
|
|
|
8,777
|
|
|||
Trading instruments
|
|
23,016
|
|
|
21,068
|
|
|
19,362
|
|
|||
Available-for-sale securities
|
|
52,420
|
|
|
27,946
|
|
|
7,596
|
|
|||
Margin loans
|
|
107,201
|
|
|
85,699
|
|
|
68,712
|
|
|||
Bank loans, net of unearned income
|
|
722,339
|
|
|
572,171
|
|
|
487,366
|
|
|||
Loans to financial advisors
|
|
15,078
|
|
|
13,333
|
|
|
8,207
|
|
|||
Corporate cash and all other
|
|
56,830
|
|
|
30,590
|
|
|
18,090
|
|
|||
Total interest income
|
|
1,043,993
|
|
|
802,126
|
|
|
640,397
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Bank deposits
|
|
65,557
|
|
|
17,184
|
|
|
10,218
|
|
|||
Securities borrowed
|
|
7,630
|
|
|
6,690
|
|
|
3,174
|
|
|||
Trading instruments sold but not yet purchased
|
|
7,344
|
|
|
6,138
|
|
|
5,035
|
|
|||
Brokerage client payables
|
|
15,367
|
|
|
4,884
|
|
|
2,084
|
|
|||
Other borrowings
|
|
22,006
|
|
|
16,559
|
|
|
12,957
|
|
|||
Senior notes payable
|
|
72,708
|
|
|
94,665
|
|
|
78,533
|
|
|||
Other
|
|
10,891
|
|
|
7,658
|
|
|
4,055
|
|
|||
Total interest expense
|
|
201,503
|
|
|
153,778
|
|
|
116,056
|
|
|||
Net interest income
|
|
842,490
|
|
|
648,348
|
|
|
524,341
|
|
|||
Bank loan loss provision
|
|
(20,481
|
)
|
|
(12,987
|
)
|
|
(28,167
|
)
|
|||
Net interest income after bank loan loss provision
|
|
$
|
822,009
|
|
|
$
|
635,361
|
|
|
$
|
496,174
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Total share-based expense
|
|
$
|
9,780
|
|
|
$
|
13,597
|
|
|
$
|
11,648
|
|
Income tax benefit related to share-based expense
|
|
$
|
861
|
|
|
$
|
1,783
|
|
|
$
|
1,181
|
|
|
|
Year ended September 30,
|
||||
|
|
2017
|
|
2016
|
||
Dividend yield
|
|
1.03
|
%
|
|
1.41
|
%
|
Expected volatility
|
|
30.91
|
%
|
|
28.85
|
%
|
Risk-free interest rate
|
|
1.81
|
%
|
|
1.65
|
%
|
Expected lives (in years)
|
|
5.4
|
|
|
5.4
|
|
|
|
Options for shares
(in thousands)
|
|
Weighted- average exercise price
(per share)
|
|
Weighted- average remaining contractual
term
(in years)
|
|
Aggregate intrinsic
value
($ in thousands)
|
|||||
Outstanding as of beginning of year
|
|
2,836
|
|
|
$
|
51.63
|
|
|
|
|
|
||
Exercised
|
|
(739
|
)
|
|
$
|
46.65
|
|
|
|
|
|
||
Forfeited
|
|
(70
|
)
|
|
$
|
53.24
|
|
|
|
|
|
||
Outstanding as of end of year
|
|
2,027
|
|
|
$
|
53.35
|
|
|
2.9
|
|
$
|
78,438
|
|
Exercisable as of end of year
|
|
728
|
|
|
$
|
47.85
|
|
|
2.2
|
|
$
|
32,195
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands, except per option amounts
|
|
2018
|
|
2017
|
|
2016
|
||||||
Weighted-average grant date fair value per option
|
|
N/A
|
|
|
$
|
19.96
|
|
|
$
|
13.96
|
|
|
Total intrinsic value of stock options exercised
|
|
$
|
31,797
|
|
|
$
|
42,178
|
|
|
$
|
16,273
|
|
Total grant date fair value of stock options vested
|
|
$
|
14,054
|
|
|
$
|
10,768
|
|
|
$
|
7,690
|
|
|
|
Pre-tax compensation costs not yet recognized
(in thousands)
|
|
Remaining weighted-average amortization period
(in years)
|
||
Employees
|
|
$
|
7,449
|
|
|
2.0
|
Independent contractor financial advisors
|
|
$
|
3,373
|
|
|
3.1
|
|
|
Shares/Units
(in thousands)
|
|
Weighted- average grant date fair value
(per share)
|
|||
Non-vested as of beginning of year
|
|
4,744
|
|
|
$
|
58.94
|
|
Granted
|
|
1,225
|
|
|
$
|
87.33
|
|
Vested
|
|
(1,089
|
)
|
|
$
|
49.02
|
|
Forfeited
|
|
(97
|
)
|
|
$
|
64.31
|
|
Non-vested as of end of year
|
|
4,783
|
|
|
$
|
68.39
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Total share-based expense
|
|
$
|
88,602
|
|
|
$
|
78,624
|
|
|
$
|
62,674
|
|
Income tax benefits related to share-based expense
|
|
$
|
23,244
|
|
|
$
|
27,658
|
|
|
$
|
21,979
|
|
|
|
Units
(in thousands)
|
|
Non-vested DBRSUs at beginning of year
|
|
1,493
|
|
Vested
|
|
(77
|
)
|
Forfeited
|
|
(44
|
)
|
Non-vested DBRSUs at end of year
|
|
1,372
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Amortization of DBRSU prepaid compensation asset
|
|
$
|
4,624
|
|
|
$
|
5,270
|
|
|
$
|
355
|
|
Increase/(decrease) in fair value of derivative liability
|
|
(8,192
|
)
|
|
8,031
|
|
|
(2,457
|
)
|
|||
Net expense/(gain) before tax
|
|
$
|
(3,568
|
)
|
|
$
|
13,301
|
|
|
$
|
(2,102
|
)
|
Income tax benefit/(expense)
|
|
$
|
(1,438
|
)
|
|
$
|
4,963
|
|
|
$
|
(799
|
)
|
|
|
Actual
|
|
Requirement for capital
adequacy purposes
|
|
To be well capitalized under regulatory provisions
|
|||||||||||||||
$ in thousands
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
RJF as of September 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET1
|
|
$
|
5,717,748
|
|
|
24.3
|
%
|
|
$
|
1,057,404
|
|
|
4.5
|
%
|
|
$
|
1,527,362
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
5,717,748
|
|
|
24.3
|
%
|
|
$
|
1,409,872
|
|
|
6.0
|
%
|
|
$
|
1,879,830
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
5,940,703
|
|
|
25.3
|
%
|
|
$
|
1,879,830
|
|
|
8.0
|
%
|
|
$
|
2,349,787
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
5,717,748
|
|
|
15.8
|
%
|
|
$
|
1,451,360
|
|
|
4.0
|
%
|
|
$
|
1,814,200
|
|
|
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 September 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CET1
|
|
$
|
2,028,525
|
|
|
12.7
|
%
|
|
$
|
721,112
|
|
|
4.5
|
%
|
|
$
|
1,041,607
|
|
|
6.5
|
%
|
Tier 1 capital
|
|
$
|
2,028,525
|
|
|
12.7
|
%
|
|
$
|
961,483
|
|
|
6.0
|
%
|
|
$
|
1,281,978
|
|
|
8.0
|
%
|
Total capital
|
|
$
|
2,228,986
|
|
|
13.9
|
%
|
|
$
|
1,281,978
|
|
|
8.0
|
%
|
|
$
|
1,602,472
|
|
|
10.0
|
%
|
Tier 1 leverage
|
|
$
|
2,028,525
|
|
|
8.8
|
%
|
|
$
|
926,390
|
|
|
4.0
|
%
|
|
$
|
1,157,987
|
|
|
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
|
%
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Raymond James & Associates, Inc.:
|
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
|
||||
Net capital as a percent of aggregate debit items
|
|
28.22
|
%
|
|
21.37
|
%
|
||
Net capital
|
|
$
|
934,612
|
|
|
$
|
589,420
|
|
Less: required net capital
|
|
(66,239
|
)
|
|
(55,164
|
)
|
||
Excess net capital
|
|
$
|
868,373
|
|
|
$
|
534,256
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Raymond James Financial Services, Inc.:
|
|
|
|
|
||||
(Alternative Method elected)
|
|
|
|
|
||||
Net capital
|
|
$
|
33,393
|
|
|
$
|
34,488
|
|
Less: required net capital
|
|
(250
|
)
|
|
(250
|
)
|
||
Excess net capital
|
|
$
|
33,143
|
|
|
$
|
34,238
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Raymond James Ltd.:
|
|
|
|
|
||||
Risk adjusted capital before minimum
|
|
$
|
106,160
|
|
|
$
|
108,985
|
|
Less: required minimum capital
|
|
(250
|
)
|
|
(250
|
)
|
||
Risk adjusted capital
|
|
$
|
105,910
|
|
|
$
|
108,735
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands, except per share amounts
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income for basic earnings per common share:
|
|
|
|
|
|
|
||||||
Net income attributable to RJF
|
|
$
|
856,695
|
|
|
$
|
636,235
|
|
|
$
|
529,350
|
|
Less allocation of earnings and dividends to participating securities
|
|
(1,463
|
)
|
|
(1,376
|
)
|
|
(1,256
|
)
|
|||
Net income attributable to RJF common shareholders
|
|
$
|
855,232
|
|
|
$
|
634,859
|
|
|
$
|
528,094
|
|
Income for diluted earnings per common share:
|
|
|
|
|
|
|
|
|
|
|||
Net income attributable to RJF
|
|
$
|
856,695
|
|
|
$
|
636,235
|
|
|
$
|
529,350
|
|
Less allocation of earnings and dividends to participating securities
|
|
(1,433
|
)
|
|
(1,350
|
)
|
|
(1,236
|
)
|
|||
Net income attributable to RJF common shareholders
|
|
$
|
855,262
|
|
|
$
|
634,885
|
|
|
$
|
528,114
|
|
Common shares:
|
|
|
|
|
|
|
|
|
|
|||
Average common shares in basic computation
|
|
145,271
|
|
|
143,275
|
|
|
141,773
|
|
|||
Dilutive effect of outstanding stock options and certain RSUs
|
|
3,567
|
|
|
3,372
|
|
|
2,740
|
|
|||
Average common shares used in diluted computation
|
|
148,838
|
|
|
146,647
|
|
|
144,513
|
|
|||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|||
Basic
|
|
$
|
5.89
|
|
|
$
|
4.43
|
|
|
$
|
3.72
|
|
Diluted
|
|
$
|
5.75
|
|
|
$
|
4.33
|
|
|
$
|
3.65
|
|
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive
|
|
527
|
|
|
1,657
|
|
|
3,255
|
|
|
|
Year ended September 30,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Dividends per common share - declared
|
|
$
|
1.10
|
|
|
$
|
0.88
|
|
|
$
|
0.80
|
|
Dividends per common share - paid
|
|
$
|
1.02
|
|
|
$
|
0.86
|
|
|
$
|
0.78
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Private Client Group
|
|
$
|
5,120,831
|
|
|
$
|
4,437,588
|
|
|
$
|
3,626,718
|
|
Capital Markets
|
|
991,604
|
|
|
1,034,235
|
|
|
1,017,151
|
|
|||
Asset Management
|
|
654,418
|
|
|
487,735
|
|
|
404,421
|
|
|||
RJ Bank
|
|
815,284
|
|
|
627,845
|
|
|
517,243
|
|
|||
Other
|
|
59,992
|
|
|
65,498
|
|
|
46,291
|
|
|||
Intersegment eliminations
|
|
(166,308
|
)
|
|
(128,026
|
)
|
|
(90,704
|
)
|
|||
Total revenues
|
|
$
|
7,475,821
|
|
|
$
|
6,524,875
|
|
|
$
|
5,521,120
|
|
Income/(loss) excluding noncontrolling interests and before provision for income taxes:
|
|
|
|
|
|
|
||||||
Private Client Group
|
|
$
|
576,094
|
|
|
$
|
372,950
|
|
|
$
|
340,564
|
|
Capital Markets
|
|
90,647
|
|
|
141,236
|
|
|
139,173
|
|
|||
Asset Management
|
|
235,336
|
|
|
171,736
|
|
|
132,158
|
|
|||
RJ Bank
|
|
491,779
|
|
|
409,303
|
|
|
337,296
|
|
|||
Other
|
|
(83,201
|
)
|
|
(169,879
|
)
|
|
(148,548
|
)
|
|||
Pre-tax income excluding noncontrolling interests
|
|
1,310,655
|
|
|
925,346
|
|
|
800,643
|
|
|||
Net income/(loss) attributable to noncontrolling interests
|
|
(5,778
|
)
|
|
2,632
|
|
|
11,301
|
|
|||
Income including noncontrolling interests and before provision for income taxes
|
|
$
|
1,304,877
|
|
|
$
|
927,978
|
|
|
$
|
811,944
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net interest income/(expense):
|
|
|
|
|
|
|
||||||
Private Client Group
|
|
$
|
165,304
|
|
|
$
|
136,756
|
|
|
$
|
97,042
|
|
Capital Markets
|
|
4,422
|
|
|
6,543
|
|
|
9,432
|
|
|||
Asset Management
|
|
1,974
|
|
|
623
|
|
|
183
|
|
|||
RJ Bank
|
|
704,361
|
|
|
574,796
|
|
|
478,690
|
|
|||
Other
|
|
(33,571
|
)
|
|
(70,370
|
)
|
|
(61,006
|
)
|
|||
Net interest income
|
|
$
|
842,490
|
|
|
$
|
648,348
|
|
|
$
|
524,341
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Total assets:
|
|
|
|
|
||||
Private Client Group
|
|
$
|
10,173,186
|
|
|
$
|
9,967,320
|
|
Capital Markets
|
|
2,278,977
|
|
|
2,396,033
|
|
||
Asset Management
|
|
386,810
|
|
|
151,111
|
|
||
RJ Bank
|
|
22,922,355
|
|
|
20,611,898
|
|
||
Other
|
|
1,651,596
|
|
|
1,757,094
|
|
||
Total
|
|
$
|
37,412,924
|
|
|
$
|
34,883,456
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
6,914,117
|
|
|
$
|
6,057,971
|
|
|
$
|
5,119,536
|
|
Canada
|
|
422,598
|
|
|
354,685
|
|
|
278,652
|
|
|||
Europe
|
|
139,106
|
|
|
107,831
|
|
|
85,718
|
|
|||
Other
|
|
—
|
|
|
4,388
|
|
|
37,214
|
|
|||
Total
|
|
$
|
7,475,821
|
|
|
$
|
6,524,875
|
|
|
$
|
5,521,120
|
|
|
|
|
|
|
|
|
||||||
Pre-tax income/(loss) excluding noncontrolling interests:
|
|
|
|
|
|
|
|
|
||||
U.S.
|
|
$
|
1,268,769
|
|
|
$
|
919,324
|
|
|
$
|
778,351
|
|
Canada
|
|
47,403
|
|
|
14,138
|
|
|
20,243
|
|
|||
Europe
|
|
(5,517
|
)
|
|
(3,577
|
)
|
|
(3,791
|
)
|
|||
Other
|
|
—
|
|
|
(4,539
|
)
|
|
5,840
|
|
|||
Total
|
|
$
|
1,310,655
|
|
|
$
|
925,346
|
|
|
$
|
800,643
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Total assets:
|
|
|
|
|
||||
U.S.
|
|
$
|
34,650,260
|
|
|
$
|
32,200,852
|
|
Canada
|
|
2,673,452
|
|
|
2,592,480
|
|
||
Europe
|
|
89,148
|
|
|
81,090
|
|
||
Other
|
|
64
|
|
|
9,034
|
|
||
Total
|
|
$
|
37,412,924
|
|
|
$
|
34,883,456
|
|
|
|
September 30,
|
||||||
$ in thousands
|
|
2018
|
|
2017
|
||||
Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
694,695
|
|
|
$
|
528,397
|
|
Assets segregated pursuant to regulations
|
|
23,411
|
|
|
40,145
|
|
||
Intercompany receivables from subsidiaries (primarily nonbank subsidiaries)
|
|
1,156,276
|
|
|
1,167,084
|
|
||
Investments in consolidated subsidiaries:
|
|
|
|
|
||||
Bank subsidiary
|
|
2,020,710
|
|
|
1,823,342
|
|
||
Non-bank subsidiaries
|
|
4,031,429
|
|
|
3,448,191
|
|
||
Property and equipment, net
|
|
14,173
|
|
|
14,457
|
|
||
Goodwill and identifiable intangible assets, net
|
|
31,954
|
|
|
31,954
|
|
||
Other assets
|
|
659,901
|
|
|
624,452
|
|
||
Total assets
|
|
$
|
8,632,549
|
|
|
$
|
7,678,022
|
|
Liabilities and equity:
|
|
|
|
|
||||
Other payables
|
|
$
|
93,583
|
|
|
$
|
80,576
|
|
Intercompany payables to subsidiaries (primarily nonbank subsidiaries)
|
|
140,949
|
|
|
52,699
|
|
||
Accrued compensation and benefits
|
|
479,920
|
|
|
414,195
|
|
||
Senior notes payable
|
|
1,549,636
|
|
|
1,548,839
|
|
||
Total liabilities
|
|
2,264,088
|
|
|
2,096,309
|
|
||
Equity
|
|
6,368,461
|
|
|
5,581,713
|
|
||
Total liabilities and equity
|
|
$
|
8,632,549
|
|
|
$
|
7,678,022
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Dividends from non-bank subsidiaries
|
|
$
|
225,492
|
|
|
$
|
183,347
|
|
|
$
|
248,020
|
|
Dividends from bank subsidiary
|
|
130,000
|
|
|
125,000
|
|
|
75,000
|
|
|||
Interest from subsidiaries
|
|
25,234
|
|
|
16,404
|
|
|
8,999
|
|
|||
Interest income
|
|
4,292
|
|
|
1,838
|
|
|
807
|
|
|||
Other
|
|
19,396
|
|
|
25,323
|
|
|
4,654
|
|
|||
Total revenues
|
|
404,414
|
|
|
351,912
|
|
|
337,480
|
|
|||
Interest expense
|
|
(73,907
|
)
|
|
(94,921
|
)
|
|
(78,089
|
)
|
|||
Net revenues
|
|
330,507
|
|
|
256,991
|
|
|
259,391
|
|
|||
Non-interest expenses:
|
|
|
|
|
|
|
||||||
Compensation and benefits
|
|
67,621
|
|
|
61,765
|
|
|
54,664
|
|
|||
Communications and information processing
|
|
8,862
|
|
|
8,741
|
|
|
6,330
|
|
|||
Occupancy and equipment costs
|
|
1,156
|
|
|
677
|
|
|
636
|
|
|||
Business development
|
|
19,833
|
|
|
18,773
|
|
|
18,364
|
|
|||
Losses on extinguishment of debt
|
|
—
|
|
|
45,746
|
|
|
—
|
|
|||
Other
|
|
17,411
|
|
|
14,707
|
|
|
9,792
|
|
|||
Intercompany allocations and charges
|
|
(31,817
|
)
|
|
(30,643
|
)
|
|
(40,424
|
)
|
|||
Total non-interest expenses
|
|
83,066
|
|
|
119,766
|
|
|
49,362
|
|
|||
Income before income tax benefit and equity in undistributed net income of subsidiaries
|
|
247,441
|
|
|
137,225
|
|
|
210,029
|
|
|||
Income tax benefit
|
|
(11,436
|
)
|
|
(85,529
|
)
|
|
(64,658
|
)
|
|||
Income before equity in undistributed net income of subsidiaries
|
|
258,877
|
|
|
222,754
|
|
|
274,687
|
|
|||
Equity in undistributed net income of subsidiaries
|
|
597,818
|
|
|
413,481
|
|
|
254,663
|
|
|||
Net income
|
|
$
|
856,695
|
|
|
$
|
636,235
|
|
|
$
|
529,350
|
|
|
|
Year ended September 30,
|
||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
856,695
|
|
|
$
|
636,235
|
|
|
$
|
529,350
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Loss/(gain) on investments
|
|
1,196
|
|
|
(14,588
|
)
|
|
(11,538
|
)
|
|||
(Gain)/loss on company-owned life insurance policies
|
|
(37,173
|
)
|
|
(47,920
|
)
|
|
(25,642
|
)
|
|||
Equity in undistributed net income of subsidiaries
|
|
(597,818
|
)
|
|
(413,481
|
)
|
|
(254,663
|
)
|
|||
Losses on extinguishment of debt
|
|
—
|
|
|
45,746
|
|
|
—
|
|
|||
Other
|
|
114,294
|
|
|
97,616
|
|
|
73,798
|
|
|||
Net change in:
|
|
|
|
|
|
|
||||||
Assets segregated pursuant to regulations
|
|
16,734
|
|
|
(40,145
|
)
|
|
—
|
|
|||
Intercompany receivables
|
|
6,468
|
|
|
178,631
|
|
|
19,641
|
|
|||
Other assets
|
|
47,411
|
|
|
80,561
|
|
|
97,067
|
|
|||
Intercompany payables
|
|
88,251
|
|
|
38,577
|
|
|
(115,657
|
)
|
|||
Other payables
|
|
13,009
|
|
|
(764
|
)
|
|
2,396
|
|
|||
Accrued compensation and benefits
|
|
65,725
|
|
|
68,180
|
|
|
58,520
|
|
|||
Net cash provided by operating activities
|
|
574,792
|
|
|
628,648
|
|
|
373,272
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
(Investments in)/distributions from subsidiaries, net
|
|
(205,311
|
)
|
|
(36,520
|
)
|
|
(637,689
|
)
|
|||
Advances to subsidiaries, net
|
|
4,340
|
|
|
(117,670
|
)
|
|
(394,383
|
)
|
|||
Proceeds from sales/(purchases) of investments, net
|
|
12,148
|
|
|
4,836
|
|
|
24,609
|
|
|||
Purchase of investments in company-owned life insurance policies, net
|
|
(69,711
|
)
|
|
(40,661
|
)
|
|
(49,488
|
)
|
|||
Net cash used in investing activities
|
|
(258,534
|
)
|
|
(190,015
|
)
|
|
(1,056,951
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Proceeds from borrowing on the RJF Credit Facility
|
|
300,000
|
|
|
—
|
|
|
—
|
|
|||
Repayment of borrowings on the RJF Credit Facility
|
|
(300,000
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from senior note issuances, net of debt issuance costs paid
|
|
—
|
|
|
508,473
|
|
|
792,221
|
|
|||
Extinguishment of senior notes payable
|
|
—
|
|
|
(650,000
|
)
|
|
(250,000
|
)
|
|||
Premium paid on extinguishment of senior notes payable
|
|
—
|
|
|
(36,892
|
)
|
|
—
|
|
|||
Exercise of stock options and employee stock purchases
|
|
63,347
|
|
|
57,462
|
|
|
43,331
|
|
|||
Purchase of treasury stock
|
|
(61,971
|
)
|
|
(34,055
|
)
|
|
(162,502
|
)
|
|||
Dividends on common stock
|
|
(151,336
|
)
|
|
(127,202
|
)
|
|
(113,435
|
)
|
|||
Net cash provided by/(used in) financing activities
|
|
(149,960
|
)
|
|
(282,214
|
)
|
|
309,615
|
|
|||
Net increase/(decrease) in cash and cash equivalents
|
|
166,298
|
|
|
156,419
|
|
|
(374,064
|
)
|
|||
Cash and cash equivalents at beginning of year
|
|
528,397
|
|
|
371,978
|
|
|
746,042
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
694,695
|
|
|
$
|
528,397
|
|
|
$
|
371,978
|
|
|
|
|
|
|
|
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
||||||
Cash paid for interest
|
|
$
|
77,736
|
|
|
$
|
98,554
|
|
|
$
|
74,568
|
|
Cash paid for income taxes, net
|
|
$
|
162,867
|
|
|
$
|
92,568
|
|
|
$
|
27,397
|
|
|
|
|
|
|
|
|
||||||
Supplemental disclosures of noncash activity:
|
|
|
|
|
|
|
||||||
Investments in subsidiaries, net
|
|
$
|
356
|
|
|
$
|
24,352
|
|
|
$
|
781
|
|
Losses on extinguishment of debt
|
|
$
|
—
|
|
|
$
|
8,854
|
|
|
$
|
—
|
|
|
|
Fiscal Year 2018
|
|||||||||||
in thousands, except per share amounts
|
|
1st Qtr.
|
2nd Qtr.
|
3rd Qtr.
|
4th Qtr.
|
||||||||
Net revenues
|
|
$
|
1,726,161
|
|
$
|
1,812,632
|
|
$
|
1,836,595
|
|
$
|
1,898,930
|
|
Non-interest expenses
|
|
$
|
1,414,477
|
|
$
|
1,481,543
|
|
$
|
1,518,553
|
|
$
|
1,554,868
|
|
Income including noncontrolling interests and before provision for income taxes
|
|
$
|
311,684
|
|
$
|
331,089
|
|
$
|
318,042
|
|
$
|
344,062
|
|
Net income attributable to Raymond James Financial, Inc.
|
|
$
|
118,842
|
|
$
|
242,847
|
|
$
|
232,258
|
|
$
|
262,748
|
|
Earnings per common share - basic
|
|
$
|
0.82
|
|
$
|
1.67
|
|
$
|
1.59
|
|
$
|
1.80
|
|
Earnings per common share - diluted
|
|
$
|
0.80
|
|
$
|
1.63
|
|
$
|
1.55
|
|
$
|
1.76
|
|
Dividends per common share - declared
|
|
$
|
0.25
|
|
$
|
0.25
|
|
$
|
0.30
|
|
$
|
0.30
|
|
|
|
Fiscal Year 2017
|
|||||||||||
in thousands, except per share amounts
|
|
1st Qtr.
|
2nd Qtr.
|
3rd Qtr.
|
4th Qtr.
|
||||||||
Net revenues
|
|
$
|
1,492,802
|
|
$
|
1,563,637
|
|
$
|
1,624,547
|
|
$
|
1,690,111
|
|
Non-interest expenses
|
|
$
|
1,285,287
|
|
$
|
1,402,334
|
|
$
|
1,347,606
|
|
$
|
1,407,892
|
|
Income including noncontrolling interests and before provision for income taxes
|
|
$
|
207,515
|
|
$
|
161,303
|
|
$
|
276,941
|
|
$
|
282,219
|
|
Net income attributable to Raymond James Financial, Inc.
|
|
$
|
146,567
|
|
$
|
112,755
|
|
$
|
183,424
|
|
$
|
193,489
|
|
Earnings per common share - basic
|
|
$
|
1.03
|
|
$
|
0.78
|
|
$
|
1.27
|
|
$
|
1.34
|
|
Earnings per common share - diluted
|
|
$
|
1.00
|
|
$
|
0.77
|
|
$
|
1.24
|
|
$
|
1.31
|
|
Dividends per common share - declared
|
|
$
|
0.22
|
|
$
|
0.22
|
|
$
|
0.22
|
|
$
|
0.22
|
|
(a)
|
Financial Statements and Schedules
|
(b)
|
Exhibit listing
|
Exhibit Number
|
|
Description
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2.1
|
|
|
4.2.2
|
|
|
4.2.3
|
|
|
4.2.4
|
|
|
4.2.5
|
|
|
10.1
|
*
|
|
10.2
|
|
Exhibit Number
|
|
Description
|
10.3
|
*
|
|
10.4
|
*
|
|
10.5
|
*
|
|
10.6
|
*
|
|
10.7
|
*
|
|
10.8
|
|
|
10.9
|
*
|
|
10.10.1
|
|
|
10.10.2
|
|
|
10.10.3
|
|
|
10.11.1
|
*
|
|
10.11.2
|
*
|
|
10.11.3
|
*
|
|
10.11.4
|
*
|
|
10.11.5
|
*
|
|
10.11.6
|
*
|
|
10.11.7
|
*
|
|
10.11.8
|
*
|
|
10.11.9
|
*
|
|
10.11.10
|
*
|
|
10.11.11
|
*
|
|
10.11.12
|
*
|
|
10.11.13
|
*
|
RAYMOND JAMES FINANCIAL, INC.
|
|
By: /s/ PAUL C. REILLY
|
Paul C. Reilly, Chairman and Chief Executive Officer
|
Signature
|
Title
|
Date
|
|
|
|
/s/ PAUL C. REILLY
|
Chairman and Chief Executive Officer (Principal Executive Officer) and Director
|
November 20, 2018
|
Paul C. Reilly
|
|
|
|
|
|
/s/ JEFFREY P. JULIEN
|
Executive Vice President - Finance and Chief Financial Officer (Principal Financial Officer)
|
November 20, 2018
|
Jeffrey P. Julien
|
|
|
|
|
|
/s/ JENNIFER C. ACKART
|
Senior Vice President and Controller (Principal Accounting Officer)
|
November 20, 2018
|
Jennifer C. Ackart
|
|
|
|
|
|
/s/ THOMAS A. JAMES
|
Chairman Emeritus and Director
|
November 20, 2018
|
Thomas A. James
|
|
|
|
|
|
/s/ CHARLES G. VON ARENTSCHILDT
|
Director
|
November 20, 2018
|
Charles G. von Arentschildt
|
|
|
|
|
|
/s/ SHELLEY G. BROADER
|
Director
|
November 20, 2018
|
Shelley G. Broader
|
|
|
|
|
|
/s/ ROBERT M. DUTKOWSKY
|
Director
|
November 20, 2018
|
Robert M. Dutkowsky
|
|
|
|
|
|
/s/ JEFFREY N. EDWARDS
|
Director
|
November 20, 2018
|
Jeffrey N. Edwards
|
|
|
|
|
|
/s/ BENJAMIN C. ESTY
|
Director
|
November 20, 2018
|
Benjamin C. Esty
|
|
|
|
|
|
/s/ ANNE GATES
|
Director
|
November 20, 2018
|
Anne Gates
|
|
|
|
|
|
/s/ FRANCIS S. GODBOLD
|
Vice Chairman and Director
|
November 20, 2018
|
Francis S. Godbold
|
|
|
|
|
|
/s/ GORDON L. JOHNSON
|
Director
|
November 20, 2018
|
Gordon L. Johnson
|
|
|
|
|
|
/s/ RODERICK C. MCGEARY
|
Director
|
November 20, 2018
|
Roderick C. McGeary
|
|
|
|
|
|
/s/ ROBERT P. SALTZMAN
|
Director
|
November 20, 2018
|
Robert P. Saltzman
|
|
|
|
|
|
/s/ SUSAN N. STORY
|
Director
|
November 20, 2018
|
Susan N. Story
|
|
|
(a)
|
“
Account
”
shall mean a Participant’s Employer Contribution Account as described in Article IV.
|
(b)
|
“
Cause
”
shall mean: (i) continued failure to perform the duties and responsibilities of his or her position after there has been delivered to the Participant a written demand for performance from the Company which describes the basis for the Company’s belief that the Participant has not substantially performed his or her duties and the Participant has not corrected such failure within thirty (30) days of such written demand; (ii) dishonesty, intentional misconduct, breach of a confidentiality agreement with the Company or a Related Employer or material breach of any other agreement with the Company or a Related Employer; (iii) breach of any fiduciary duty owed to the Company by the Participant that has a material detrimental effect on the Company’s reputation or business; or (iv) conviction of, or plea of nolo contendere to, a crime involving dishonesty, breach of trust, or physical or emotional harm to any person, or which materially compromises Participant’s ability to perform
|
(c)
|
“
Code
”
shall mean the Internal Revenue Code of 1986, as it may be amended from time to time. Reference to a specific Code Section shall include any successor provision.
|
(d)
|
“
Committee
”
shall mean the Compensation Committee of the Board of Directors of the Company.
|
(e)
|
“
Company
”
shall mean Raymond James Financial, Inc., a Florida corporation, and its successor or successors.
|
(f)
|
“
Disability
”
mean unless such term (or word of like import) is expressly defined in a then-effective written agreement between a Participant and the Company and a Related Employer, a permanent and total disability as determined under the long-term disability plan of the Company or the Related Employer to which the Participant provides services unless the Participant is not a participant in such long-term disability plan or in the absence of such long-term disability plan, in which case, “Disability” means a mental or physical condition which totally and presumably permanently prevents the Participant from engaging in any substantial gainful employment with the Company or the Related Employer to which the Participant provides services prior to the inception of the disability; provided that, for purposes of contributions hereunder that are subject to Section 409A, “Disability” means a disability within the meaning of Code Section 409A(a)(2)(C) and Treasury regulation section 1.409A-3(i)(4), as each may be amended from time to time. A Participant will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion.
|
(g)
|
“
Early Retirement Date
”
shall mean, with respect to a Participant, the date that is the earliest of (1) the date at or after the Participant attains age 55 when the number of the Participant’s years of service plus the age of the Participant equals 75 or (2) the date at or after the Participant attains age 60 when the Participant has at least five years of service. For these purposes, “years of service” shall be determined in accordance with the vesting provisions of the Raymond James Financial, Inc. and Affiliates Profit Sharing Plan as it may exist from time to time. Provided, however, this paragraph is deleted in its entirety and has no effect for contributions made on or after October 1, 2017, any other provisions herein notwithstanding.
|
(h)
|
“
Normal Retirement Date
”
shall mean, with respect to a Participant, the date on which the Participant attains age 65. For contributions made on or after October 1, 2017, Normal Retirement Date shall mean the earlier of: (1) the date on which the Participant has both attained at least age 55 and has at least ten (10) years of service
|
(i)
|
“
Participant
”
shall mean any employee of the Company or a Related Employer who is covered by this Plan as provided in Article III.
|
(j)
|
“
Period of Credited Service
”
shall mean the period from October 1 of one year through September 30 of the next year during which the Participant is employed by the Company or a Related Employer.
|
(k)
|
“
Plan
”
shall mean the Raymond James Financial Long-Term Incentive Plan as set forth herein and as it may be amended from time to time.
|
(l)
|
“
Plan Administrator
”
shall mean the Committee or its designee(s).
|
(m)
|
“
Plan Year
”
shall mean the 12-month period ending on the last day of September.
|
(n)
|
“
Related Employer
”
shall mean a corporation, limited liability company or other business entity that is affiliated with the Company, that has elected to adopt the Plan, and that the Company, in its sole discretion, allows to participate in the Plan as a participating employer.
|
(o)
|
“
Separation from Service
”
shall mean the termination of employment of a Participant (whether for death, disability, retirement or otherwise) with his or her Service Recipient within the meaning of Code Section 409A.
|
(p)
|
“
Service Recipient
”
shall mean a Participant’s employer and all other corporations and other persons with whom such employer would be considered as a single employer under Code Section 414(b) or Code Section 414(c).
|
(q)
|
“
Specified Employee
”
shall mean a Participant who, at the date of his or her Separation from Service (other than by reason of death), is a key employee of a Service Recipient. For these purposes, the Participant is a key employee if he or she meets the requirements of a key employee (as defined in Code Section 416(i) (without regard to Code Section 416(i)(5)) at any time during the 12-month period ending on the specified employee identification date of December 31 as long as any stock of the Service Recipient is publicly traded on an established securities market or otherwise. The specified employee effective date shall be April 1 following the respective December 31 identification date. Determination of whether a Participant is a key employee at the date of his or her Separation from Service shall be made in accordance with the requirements of Treas. Reg. section 1.409A-1(i) as amended from time to time.
|
(r)
|
“Successful Sale of Book of Business
”
shall mean the complete transfer of the right to service client assets from the Participant to a buyer for consideration. Whether a particular transaction meets this definition shall be determined in the sole discretion of the Plan Administrator.
|
(b)
|
Plan Administrator’s Authority
.
The Plan Administrator may consult with Company officers, legal and financial advisers to the Company and others, but nevertheless the Plan Administrator shall have the full authority and discretion to act, and the Plan Administrator’s actions shall be final and conclusive on all parties.
|
(a)
|
Discretionary Contributions
.
The Company or a Related Employer may, in accordance with the provisions of Article III, determine to credit an eligible employee with a discretionary contribution with respect to a Plan Year. The amount to be contributed shall be determined by the Company or a Related Employer
in its sole discretion.
|
(b)
|
Participant Accounts
.
|
(1)
|
Amounts, if any, credited to a Participant pursuant to this Plan shall be recorded by the Plan Administrator in an Account maintained in the name of the Participant. A separate Account shall be maintained for each Plan Year that a person receives a contribution.
|
(2)
|
All amounts that are credited to a Participant’s Account shall be credited solely for purposes of accounting and computation, and no fund shall be set aside with respect thereto, except as may be provided in paragraph (e) below. A Participant shall not have any interest in or right to any such Account at any time.
|
(3)
|
The Plan shall be unfunded for all federal tax purposes. All amounts recorded in Accounts, a Participant’s interest in the Plan and any amounts provided under the Plan shall constitute an unsecured promise by the Company or a Related Employer to pay benefits in the future, and a Participant shall have the status of a general unsecured creditor of the Company or Related Employer. All amounts credited to a Participant’s Account(s) will remain as general assets of the Company or a Related Employer and shall remain subject to the claims of the Company’s or the Related Employer’s creditors until such time as the amounts are distributed to the Participant.
|
(c)
|
Crediting and Debiting of Accounts
.
|
(1)
|
As provided in paragraph (b)(l) above, a Participant’s Account shall be credited with the amounts contributed to the Plan on behalf of the Participant with respect to a Plan Year. The Account thereafter shall be credited (or debited) from time to time based upon the Participant’s allocable share of the return (including any negative return) on the investment or deemed investment of the amounts credited to the Participant’s Account (which investments or deemed investments shall be determined by the Plan Administrator). Upon distribution or forfeiture of amounts in the Account, the Account shall be debited with the amount of the distribution or forfeiture, as the case may be.
|
(2)
|
The Plan Administrator shall establish such rules and procedures as are necessary for purposes of crediting and debiting the Participants’ Accounts from time to time. Without limitation on the foregoing, lump sum distributions shall be based on the value of the Account(s) of a Participant as of the end of the month immediately preceding the date of payment.
|
(d)
|
Account Valuation
.
|
(1)
|
The value of a Participant’s Account(s) shall be determined by the Plan Administrator, and the Plan Administrator may establish such accounting procedures as are necessary to account for the Participant’s interest in the Plan. Each Participant’s Account(s) shall be valued as of the last day of each Plan Year and/or such other date or dates as may be determined from time to time by the Plan Administrator.
|
(2)
|
At least annually, the Plan Administrator shall furnish each Participant with a statement of the value of his or her Account(s).
|
(e)
|
Establishment of Trust
.
|
(a)
|
Vesting Rules for Contributions Made Prior to December 1, 2013.
For contributions made prior to December 1, 2013
, a Participant shall become 100% vested in the amount credited to his or her Account (including earnings and other adjustments) with respect to a contribution for a specific Plan Year on the first to occur of the following:
|
(1)
|
the date that the Participant has five (5) consecutive Periods of Credited Service with respect to such contribution; or
|
(2)
|
the Participant’s Separation from Service by reason of death or Disability, or
|
(3)
|
the Participant’s Separation from Service on or after the attainment of his or her Normal Retirement Date
|
(b)
|
Vesting Rules for Contributions Made on or After December 1, 2013.
For contributions made on or after December 1, 2013, a Participant shall become 100% vested in the amount credited to his or her Account (including earnings and other adjustments) with respect to a contribution for a specific Plan Year on the first to occur of the following:
|
(1)
|
the date that the Participant has five (5) consecutive Periods of Credited Service with respect to such contribution;
|
(2)
|
the Participant’s Separation from Service by reason of death or Disability;
|
(3)
|
the date upon which a Successful Sale of Book of Business is completed with respect to a Participant; or
|
(4)
|
Separation from Service on or after Early Retirement Date or Normal Retirement Date, under the following conditions. Provided, however this paragraph(4) shall not apply to Early Retirement effective for contributions made on or after October 1, 2017.
|
(A)
|
If a Participant’s Separation from Service occurs on or after his or her Early Retirement Date or Normal Retirement Date, then solely for vesting purposes, the Participant shall be treated as if he or she continued employment with the Company or a Related Employer and will vest 100% with respect to a contribution under the rule described in paragraphs (a)(1) and (b)(l) above at the end of five consecutive Periods of Credited Service with respect to such contribution, regardless of whether the Participant actually performed services during this time.
|
(B)
|
Such continued vesting, however, shall be subject to and conditioned upon the Participant not engaging in competition with the Company or any Related Employer: [a] with respect to contributions credited prior to August 22, 2018, during the remaining portion of such five-year period with respect to the contribution, and [b] with respect to contributions credited on or after October 1, 2018, during the lesser of (i) the remainder of such five-year period with respect to the contribution or (ii) the two-year period following the Participant’s Separation from Service. The Participant’s engaging in any such competition during the applicable period will result in an immediate forfeiture of all of the balances in the Participant’s Accounts that are not then vested. A Participant shall be deemed to have engaged in competition with the Company based upon the rules enumerated in Appendix A hereto.
|
(c)
|
Notwithstanding any of the provisions above, any Participant who was 100% vested in any Account prior to October 1, 2005 under the terms of the Plan as then in existence shall remain 100% vested therein.
|
(d)
|
A Participant has five consecutive Periods of Credited Service only if the Participant is employed by the Company or a Related Employer for the full five-year period beginning on October 1 of the year following the Plan Year with respect to which the contribution is made and continuing through September 30 of the fifth year thereafter. For example, if a contribution is credited to a Participant with respect to the Plan Year ended September 30, 2005 (regardless whether the contribution is actually credited to the Account of the Participant in September 2005 or in subsequent months), the Participant will have five consecutive Periods of Credited Service only if the Participant remains employed by the Company or a Related Employer during the entire period from October 1, 2005 through September 30, 2010.
|
(e)
|
Solely for purposes of this Article V
and notwithstanding the definition of “Separation from Service” in Article I, paragraph (n), hereof, a Participant’s change in his or her status from employee to independent contractor shall be deemed a Separation from Service for purposes of determining vesting under this paragraph (a), provided that this provision shall not be read or administered in any way that would affect the Payment Date as determined under Article VI.
|
(f)
|
Except as expressly provided in paragraphs (a)(2), (a)(3), (b)(2), (b)(4) and (c) above, the Separation from Service of a Participant from the Company and Related Employers before the vesting date will result in a forfeiture of all of the balances in a Participant’s Accounts that are not then vested.
|
(g)
|
All other provisions of this Article V notwithstanding, effective for contributions made on or after October 1, 2017 in the event a Participant is Separated from Service for Cause he or she will forfeit any unvested balances in the Plan that are not already vested under the terms of this Article prior to the Participant’s date of Separation from Service.
|
(a)
|
Payment Date for Contributions Made Prior to December 1, 2013.
For contributions made prior to December 1, 2013, and except as provided in paragraphs (c) and (d) below, payments due with respect to any contribution shall be made in cash in a lump sum on the first to occur of the following dates:
|
(1)
|
as soon as practicable following the end of the five consecutive Periods of Credited Service with respect to such contribution (including under the special deemed credited service provisions set forth in Article V(b)(4) above for Separation from Service on or after the Participant’s Early Retirement Date); or
|
(2)
|
as soon as practicable after the Participant’s Separation from Service by reason of death or Disability;
|
(3)
|
as soon as practicable as the Participant’s Separation from Service following the attainment of his or her Normal Retirement Age; or
|
(4)
|
Payments due with respect to an Account that is 100% vested in accordance with the special grandfather rule contained in Article V for accounts vested as of October 1, 2005 shall be paid in cash in a lump sum in December immediately following the end of the Period of Service in which the Participant incurs a Separation from Service.
|
(b)
|
Payment Date for Contributions Made on or After December 1, 2013.
For contributions made on or after December 1, 2013, and except as provided in paragraphs (c), (d) and (f) below, below, payments due with respect to any contribution shall be made on the first to occur of the following dates:
|
(1)
|
as soon as practicable following the end of the five consecutive Periods of Credited Service with respect to such contribution (including under the special deemed credited service provisions set forth in Article V(b)(4) above for Separation from Service on or after the Participant’s Early Retirement Date or Normal Retirement Date);
|
(2)
|
as soon as practicable after the Participant’s Separation from Service by reason of death or Disability; or
|
(3)
|
as soon as practicable after the Participant has incurred a Separation from Service following a Successful Sale of Book of Business. However, in the event the Participant’s Separation from Service following a Successful Sale of Book of Business occurs on or after the Participant’s Early Retirement Date or Normal Retirement Date, the Participant shall not be paid until the first to occur of (b)(1) or (b)(2) immediately above.
|
(c)
|
One Time Right To Defer
.
Notwithstanding the provisions above:
|
(1)
|
A Participant shall have the right to defer the payment of any Account balance otherwise payable above until a later date. Any such election to defer:
|
(A)
|
is irrevocable,
|
(B)
|
may be made only once with respect to any Plan Year balance,
|
(C)
|
may not take effect until at least twelve (12) months after the date on which such election is made,
|
(D)
|
must be made not less than 12 months before the date the payment is scheduled to be paid, and
|
(E)
|
must establish a payment date that is at least five (5) years after the date that payment would have otherwise been made absent the deferral election.
|
(2)
|
As a general rule, the deferral election shall not affect the form of payment as provided in paragraph (e) below. In the event the deferral election applies to a payment subject to a Participant’s election of installment payments, the first installment shall be paid on the date selected (which date must comply with the requirements of paragraph (c)(l)(D) above) and each subsequent installment shall be made on the same date in each succeeding year.
|
(3)
|
Notwithstanding the foregoing, unless the Participant has made a separate election to defer payments under paragraph (4) immediately below, in the event that the Participant has begun receiving installment payments and then incurs a Separation from Service by reason of death or Disability, the installment payments shall be terminated and the remaining balance shall be paid in a lump sum as soon as practicable after the Participant’s Separation from Service by reason of death or Disability.
|
(4)
|
A Participant shall have the right to make a one-time irrevocable election that payments made to a designated beneficiary upon the Participant’s death shall be made in equal annual installments over a five-year period commencing with the Participant’s death. Provided, any such election shall not take effect until at least twelve (12) months after the date on which such election is made.
|
(d)
|
Required Payment Deferral
.
Notwithstanding anything in this Plan to the contrary, in the event that a payment is scheduled to be made to a Specified Employee as a result of such Participant’s Separation from Service (other than by reason of death), then no payment may be made to such Participant during the six (6) month period immediately following the date of the Participant’s Separation from Service. In the event any payment is delayed under the provisions of this paragraph (e), then all amounts that the Participant would otherwise have been entitled to during the six-month period shall be accumulated and paid on the first day of the seventh month following the date of the Participant’s Separation from Service.
|
(e)
|
Form of Payment.
Payments shall generally be made in cash in a lump sum. Participants with an account balance equal to or greater than $25,000 may elect payment in annual installments for no less than three years or more than fifteen years Effective for contributions made on or after October 1, 2017, the number of annual
|
(f)
|
Subsection (b) above shall not apply to circumstances constituting Early Retirement effective for contributions made on or after October 1, 2017
|
(g)
|
As Soon As Is Practicable
.
For purposes of this Article VI, whenever payment is to be made “as soon as practicable” following a specified event, such payment shall be made in all events during the period following the date on the date of the specified event and ending no later than the later of (1) the end of the taxable year of the Participant in which the event occurs or (2) ninety days after the date of the event, provided, that the Participant does not have a right to designate the taxable year of the payment.
|
(1)
|
The Plan may be amended at any time, and from time to time, by the Committee or by any officer of the Company authorized by the Committee.
|
(2)
|
The Plan may be terminated at any time by the Committee.
|
(i)
|
Liability Limited
.
|
1.
|
Discloses the list of the Company’s or a Related Employer’s customers, or any part thereof, to any person, firm, corporation, association or other entity for any reason or purposes whatsoever;
|
2.
|
Discloses to any person, firm, corporation, association or other entity any information regarding the Company’s or a Related Employer’s general business practices or procedures, methods of sale, list of products, personnel information and any other valuable, special information unique to the Company’s or a Related Employer’s business;
|
3.
|
Owns, 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 that is engaged in one or more businesses that are or may be competitive to the business of the Company or a Related Employer; provided that this restriction shall encompass (A) the State of Florida, (B) all other states in the United States where the Company or a Related Employer is engaged in business (and every city, county and other political subdivision of such states); and (C) any other countries where the Company or a Related Employer is engaged in business (and every city, county, province and other political subdivision of such countries);
|
4.
|
Solicits or calls either for himself or herself, or for any other person or firm, corporation, association or other entity, any of the customers of the Company or a Related Employer on whom the Participant called, with whom the Participant became acquainted, or of whom the Participant learned during his employment; or
|
5.
|
Solicits any of the employees or agents of the Company or a Related Employer to terminate his or her employment or relationship with the Company or a Related Employer.
|
1.
|
Directly or indirectly, individually or in concert with any other person or entity, competes with the Company in the United States and in each state of the United States, whether as an employee, consultant or contractor, or as an owner, member or joint venture in, or agent of, any business that competes with the Company.
|
2.
|
Directly or indirectly, individually or in concert with any other person or entity (i) recruits, induces or attempts to recruit or induce any employee of the Company with whom the
|
3.
|
Directly or indirectly, individually or in concert with any other person or entity, solicits, diverts, takes away or attempts to solicit, divert or take away any then-current or proposed client or customer of the Company with whom the Participant had Material Contact during his or her employment. For purposes of this provision, a Participant had “Material Contact” with a current or proposed client or customer if (i) the Participant had business dealings with the current or proposed client or customer on behalf of the Company or (ii) the Participant supervised or coordinated the dealings between the Company and the current or proposed client or customer.
|
4.
|
Directly or indirectly, uses for himself or herself or any other business, or discloses to any person, any Confidential Information (as defined below), without the prior written consent of the Company, during the period that it remains confidential and nonpublic or a trade secret under applicable law (the “Confidentiality Covenant”). “Confidential Information” means all non-public information (whether a trade secret or not and whether proprietary or not) relating to the Company’s business and its customers, that the Company either treats as confidential or that is of value to the Company or important to the Company’s business and operations, including but not limited to the following specific items: trade secrets (as defined by applicable law); actual or prospective customers and customer lists; marketing strategies; sales; actual and prospective pricing and fees; products, know-how; research and development; intellectual property; information systems and software, business plans and projections; negotiations and contracts; financial or cost data; employment, compensation and personnel information; procedures and processes; and nay other non-public business information regarding the Company. In addition, trade secrets will be entitled to all of the protections and benefits available under applicable law. For the avoidance of doubt, by participating in the Plan, each Participant acknowledges and agrees that this Confidentiality Covenant shall in no event be interpreted to limit his or her general obligations of confidentiality to an employer or former employer under the Company’s Code of Business Conduct and Ethics, the common law, or pursuant to any agreement that the Participant may otherwise enter into and with the Company, all of which obligations shall remain in full force and effect.
|
Title
|
EVP – Finance, Chief Financial Officer and Treasurer
|
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
|
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Year ended September 30,
|
||||||||||||||||||
$ in thousands
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax income excluding noncontrolling interests
|
|
$
|
1,310,655
|
|
|
$
|
925,346
|
|
|
$
|
800,643
|
|
|
$
|
798,174
|
|
|
$
|
748,045
|
|
Fixed charges
|
|
241,907
|
|
|
237,885
|
|
|
148,329
|
|
|
135,874
|
|
|
131,466
|
|
|||||
Less: preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Earnings
|
|
$
|
1,552,562
|
|
|
$
|
1,163,231
|
|
|
$
|
948,972
|
|
|
$
|
934,048
|
|
|
$
|
879,511
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
|
$
|
200,641
|
|
|
$
|
152,617
|
|
|
$
|
114,921
|
|
|
$
|
104,862
|
|
|
$
|
99,978
|
|
Estimated interest portion within rental expense
|
|
40,404
|
|
|
38,361
|
|
|
32,273
|
|
|
29,799
|
|
|
30,275
|
|
|||||
Amortization of debt issuance costs
|
|
862
|
|
|
1,161
|
|
|
1,135
|
|
|
1,213
|
|
|
1,213
|
|
|||||
Losses on extinguishment of debt
|
|
—
|
|
|
45,746
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total fixed charges
|
|
$
|
241,907
|
|
|
$
|
237,885
|
|
|
$
|
148,329
|
|
|
$
|
135,874
|
|
|
$
|
131,466
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges and preferred stock dividends
|
|
6.42
|
|
|
4.89
|
|
|
6.40
|
|
|
6.87
|
|
|
6.69
|
|
Entity Name
|
State/Country of Incorporation
|
Subsidiary or Joint Venture of
|
740780 Carillon, LLC
|
Florida
|
Raymond James Financial, Inc.
|
800 Carillon, LLC
|
Florida
|
Raymond James Financial, Inc.
|
Carillon Fund Distributors, Inc.
|
Florida
|
Eagle Asset Management, Inc.
|
Carillon Fund Services, Inc.
|
Florida
|
Carillon Tower Advisers, Inc.
|
Carillon Tower Advisers, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
ClariVest Asset Management, LLC
|
Delaware
|
Eagle Asset Management, Inc.
|
Cougar Global ETF Portfolio Management Inc.
|
Delaware
|
Cougar Global Investments Limited
|
Cougar Global Investments Limited
|
Ontario
|
Raymond James International Canada, Inc.
|
Eagle Asset Management, Inc.
|
Florida
|
Carillon Tower Advisers, Inc.
|
Eagle Boston Investment Management, Inc.
|
Florida
|
Eagle Asset Management, Inc.
|
EB Management I, LLC
|
Florida
|
Eagle Asset Management, Inc.
|
Former WT, Inc.
|
Tennessee
|
MK Holding, Inc.
|
Gateway Institutional Tax Credit Fund II, Ltd
|
Florida
|
Raymond James Tax Credit Funds, Inc.
|
Merchant Bankers, Inc.
|
Tennessee
|
MK Holding, Inc.
|
MK Holding, Inc.
|
Alabama
|
Raymond James Financial, Inc.
|
MK Investment Management, Inc.
|
Delaware
|
MK Holding, Inc.
|
MK Mezzanine Management, LLC
|
Delaware
|
Morgan Properties, LLC
|
Morgan Keegan & Associates, LLC
|
Delaware
|
MK Holding, Inc.
|
Morgan Keegan & Company, LLC
|
Tennessee
|
Raymond James Financial, Inc.
|
Morgan Keegan Employee Investment Fund, LP
|
Delaware
|
Merchant Bankers, Inc.
|
Morgan Keegan Fund Management, Inc.
|
Tennessee
|
MK Holding, Inc.
|
Morgan Keegan Mezzanine Fund, LP
|
Delaware
|
MK Mezzanine Management, LLC
|
Morgan Keegan Private Equity Employee Fund of Funds II, LP
|
Delaware
|
MK Investment Management, Inc.
|
Morgan Keegan Private Equity Fund of Funds II, LP
|
Delaware
|
MK Investment Management, Inc.
|
Morgan Keegan Private Equity Fund of Funds II Blocker, LLC
|
Delaware
|
Morgan Keegan Private Equity QP Fund of Funds II, LP; Morgan Keegan Private Equity Fund of Funds II, LP; Morgan Keegan Private Equity Employee Fund of Funds II, LP
|
Morgan Keegan Private Equity Fund of Funds II Holdings, LP
|
Delaware
|
Morgan Keegan Private Equity QP Fund of Funds II, LP; Morgan Keegan Private Equity Fund of Funds II, LP; Morgan Keegan Private Equity Employee Fund of Funds II, LP; Morgan Keegan Private Equity Fund of Funds II Blocker, LLC
|
Morgan Keegan Private Equity QP Fund of Funds II, LP
|
Delaware
|
MK Investment Management, Inc.
|
Morgan Properties, LLC
|
Tennessee
|
Raymond James Investments, LLC
|
Mummert & Company Corporate Finance GesmbH
|
Austria
|
Raymond James Corporate Finance GmbH
|
Native American Housing Fund I Limited Partnership
|
District of Columbia
|
Raymond James Tax Credit Funds, Inc.
|
Native American Housing Fund II Limited Partnership
|
District of Columbia
|
Raymond James Tax Credit Funds, Inc.
|
Native American Housing Fund III, L.L.C.
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Native American Housing Fund IV, L.L.C.
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Preferred Fund of Funds, LLC
|
Delaware
|
Morgan Keegan Fund Management, Inc.
|
Raymond James & Associates, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James (USA) Ltd.
|
Canada
|
Raymond James Ltd.
|
Raymond James Affordable Housing Fund 1 LP
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Affordable Housing Fund 2 LP
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Affordable Housing Fund 4 LLC
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Affordable Housing Fund 6 LLC
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Asset Management International, S.A.
|
France
|
Raymond James International Holdings, Inc.
|
Entity Name
|
State/Country of Incorporation
|
Subsidiary or Joint Venture of
|
Raymond James Bank, National Association
|
U.S.A.
|
Raymond James Financial, Inc.
|
Raymond James Canada, LLC
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James Canadian Acquisition, Inc.
|
Florida
|
Raymond James Bank, National Association
|
Raymond James Canadian Holdings, LLC
|
Florida
|
Raymond James Canadian Acquisition, Inc.
|
Raymond James Capital Inc.
|
Delaware
|
Raymond James Financial, Inc.
|
Raymond James Capital Funding, Inc.
|
Florida
|
Raymond James Bank, National Association
|
Raymond James Capital Services, LLC
|
Delaware
|
MK Holding, Inc.
|
Raymond James Community Reinvestment Fund 1, LLC
|
Florida
|
Raymond James Bank, National Association
|
Raymond James Corporate Finance GmbH
|
Germany
|
Raymond James Global Holdings Limited
|
Raymond James Development Tax Credit Fund LLC
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Euro Equities SAS
|
France
|
Raymond James European Securities S.A.S.
|
Raymond James European Holdings, Inc.
|
Florida
|
Raymond James International Holdings, Inc.
|
Raymond James European Securities S.A.S.
|
France
|
Raymond James International Holdings, Inc.
|
Raymond James Finance Company of Canada, Ltd.
|
Canada
|
Raymond James Canadian Holdings, LLC
|
Raymond James Financial International Limited
|
U.K.
|
Raymond James International Holdings, Inc.
|
Raymond James Financial Management Ltd.
|
Canada
|
Raymond James Ltd.
|
Raymond James Financial Planning Ltd.
|
British Columbia
|
Raymond James Ltd.
|
Raymond James Financial Products, Inc.
|
Tennessee
|
MK Holding, Inc.
|
Raymond James Financial Services Advisors, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James Financial Services, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James Global Holdings Limited
|
U.K.
|
Raymond James International Holdings, Inc
|
Raymond James Global Securities, Limited
|
British Virgin Islands
|
Raymond James International Holdings, Inc.; Raymond James South American Holdings, Inc.
|
Raymond James Holdings, Ltd.
|
Florida
|
Residual Partners
|
Raymond James Insurance Group, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James International Canada, Inc.
|
Florida
|
Raymond James International Holdings, Inc.
|
Raymond James International Holdings, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James Investment Counsel Ltd.
|
Canada
|
Raymond James Ltd.
|
Raymond James Investments, LLC
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James Investment Services Limited
|
U.K.
|
Raymond James Financial, Inc.
|
Raymond James Latin America S.A.
|
Uruguay
|
Raymond James South American Holdings, Inc.
|
Raymond James Ltd.
|
Canada
|
Raymond James Canada, LLC
|
Raymond James Management, LLC
|
Delaware
|
Raymond James Investments, LLC
|
Raymond James Management-EPG, LLC
|
Delaware
|
Raymond James Investments, LLC
|
Raymond James Management-Forensics, LLC
|
Delaware
|
Raymond James Investments, LLC
|
Raymond James Mortgage Company, Inc.
|
Tennessee
|
MK Holding, Inc.
|
Raymond James Multifamily Finance, Inc.
|
Florida
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Municipal Products, Inc.
|
Delaware
|
MK Holding, Inc.
|
Raymond James Preservation Opportunities Fund III L.L.C.
|
Florida
|
Raymond James Multifamily Finance, Inc.
|
Raymond James Preservation Opportunities Fund XX L.L.C.
|
Florida
|
Raymond James Multifamily Finance, Inc.
|
Raymond James Research Services, LLC
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James South American Holdings, Inc.
|
Florida
|
Raymond James International Holdings, Inc.
|
Raymond James Structured Products, Inc.
|
Delaware
|
MK Holding, Inc.
|
Raymond James Tax Credit Fund 34 L.L.C.
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Tax Credit Fund XI L.L.C.
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Tax Credit Fund XVIII L.L.C.
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Tax Credit Fund XXI L.L.C.
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Tax Credit Fund XXIII L.L.C.
|
Delaware
|
Raymond James Tax Credit Funds, Inc.
|
Raymond James Tax Credit Funds, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
Raymond James Trust, National Association
|
U.S.A.
|
Raymond James Financial, Inc.
|
Raymond James Yatirim Menkul Kiymetler A.S.
|
Turkey
|
Raymond James European Holdings, Inc.
|
Residual Partners
|
Florida
|
Raymond James Financial, Inc.
|
Entity Name
|
State/Country of Incorporation
|
Subsidiary or Joint Venture of
|
RJ Capital Services, Inc.
|
Delaware
|
Raymond James Financial, Inc.
|
RJ Economic Development Fund, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
RJ Partners, Inc.
|
Florida
|
Raymond James Financial, Inc.
|
RJ Securities, Inc.
|
Florida
|
Raymond James Investments, LLC
|
RJA Structured Finance, Inc.
|
Delaware
|
Raymond James Financial, Inc.
|
RJC Event Photos, LLC
|
Delaware
|
Raymond James Investments, LLC
|
RJC Forensics, LLC
|
Delaware
|
Raymond James Investments, LLC
|
RJC Partners, Inc.
|
Delaware
|
Raymond James Financial, Inc.
|
RJTCF Disposition Corporation
|
Florida
|
RJTCF Disposition Fund, LLC
|
RJTCF Disposition Fund, LLC
|
Florida
|
Raymond James Tax Credit Funds, Inc.
|
Scout Investments, Inc.
|
Missouri
|
Carillon Tower Advisers, Inc.
|
SLG Partners GP, LLC
|
Delaware
|
Raymond James Investments, LLC; Raymond James Management, LLC
|
SLG Partners, LP
|
Delaware
|
SLG Partners GP, LLC
|
SLG Partners, LP II
|
Delaware
|
SLG Partners GP, LLC
|
The Producers Choice LLC
|
Michigan
|
TPC Acquisition Co.
|
TPC Acquisition Co.
|
Florida
|
Raymond James Financial, Inc.
|
Value Partners, Inc.
|
Florida
|
Raymond James Tax Credit Funds, Inc.
|
|
Date:
|
November 20, 2018
|
|
/s/ PAUL C. REILLY
|
|
Paul C. Reilly
|
|
Chairman and Chief Executive Officer
|
|
Date:
|
November 20, 2018
|
|
/s/ JEFFREY P. JULIEN
|
|
Jeffrey P. Julien
|
|
Executive Vice President - Finance and Chief Financial Officer
|
|
|
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
|
|
November 20, 2018
|
|
/s/ JEFFREY P. JULIEN
|
|
Jeffrey P. Julien
|
|
Executive Vice President - Finance and Financial Officer
|
|
November 20, 2018
|