Raymond James Financial (RJF) 8-K Reports Second Quarter Results

April 20, 2011

FOR IMMEDIATE RELEASE

RAYMOND JAMES FINANCIAL

REPORTS SECOND QUARTER RESULTS

ST. PETERSBURG, Fla. – Raymond James Financial, Inc. today reported a 45 percent increase from the prior year’s quarterly net income to $80,917,000, or $0.64 per diluted share, for its second fiscal quarter ended March 31, 2011. In comparison, the firm earned $55,628,000, or $0.45 per diluted share, for the second quarter of fiscal 2010. This quarter’s net revenue of $852,057,000 is a 16 percent increase over last year’s second fiscal quarter.

“This quarter’s record net revenue, assets under administration and assets under management demonstrate the underlying strength of the firm through this economic recovery,” stated CEO Paul Reilly.

“Net revenue was 5 percent higher and net income 1 percent lower than the previous quarter. Although net income was down slightly, it was in line with our expectations given positive adjustments during the first quarter,” Reilly continued.

“The Private Client Group led this quarter’s growth with assets under administration reaching a record $275 billion. Assets under management also grew to a record $35.6 billion due to both market appreciation and net inflows.

“Capital Markets had another strong quarter. Although the number of lead managed deals was up slightly sequentially, underwriting revenue was down due to smaller deal participations. However, M&A revenue was robust, making up the shortfall. Although Fixed Income commissions were down, Fixed Income produced solid results due to strong trading profits in the municipal area.

“Raymond James Bank loan balances were down slightly once again due to a high level of payoffs. Although the loan production and pipeline have been strong, growing the loan book continues to be challenging within our target credit/risk appetite given the high rates of payoffs.

“In early April, we closed on the Howe Barnes Hoefer & Arnett acquisition, and also completed a $250 million offering of 5-year senior notes.

“Our business results continue to improve and we are well-positioned to continue our growth and expansion,” added Reilly. “The uncertain economic outlook, global unrest and mountain of proposed regulatory rules keep our optimism in check, but we look forward to meeting these challenges.”

The company will conduct its quarterly conference call Thursday, April 21, at 8:15 a.m. ET. For a listen-only connection, visit raymondjames.com/analystcall for a live audio webcast. The subjects to be covered may include forward-looking information. Questions may be posed to management by participants on the analyst call-in line, and in response the company may disclose additional material information.

About Raymond James Financial, Inc.

Raymond James Financial (NYSE-RJF) is a Florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies. Its three principal wholly owned broker/dealers, Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd. have more than 5,300 financial advisors serving 1.9 million accounts in 2,400 locations throughout the United States, Canada and overseas. In addition, total client assets are approximately $275 billion, of which approximately $36 billion are managed by the firm’s asset management subsidiaries.

To the extent that Raymond James makes or publishes forward-looking statements (regarding management expectations, strategic objectives, business prospects, anticipated expense savings, financial results, anticipated results of litigation and regulatory proceedings, and other similar matters), a variety of factors, many of which are beyond Raymond James’ control, could cause actual results and experiences to differ materially from the expectations and objectives expressed in these statements. These factors are described in Raymond James’ 2010 annual report on Form 10-K and the quarterly report on Form 10-Q for the quarter ended December 31, 2010, which are available on RAYMONDJAMES.COM and SEC.GOV.

For more information, contact Steve Hollister at 727-567-2824.

Please visit the Raymond James Press Center at raymondjames.com/media.

Raymond James Financial, Inc. Unaudited Report (in thousands, except per share amounts)
	Three Months Ended
	March 31, 2011		March 31, 2010		% Change			December 31, 2010		% Change
Total Revenues		$866,744		$749,987		16	%		$830,333		4	%
Net Revenues		852,057		734,439		16	%		813,829		5	%
Pre-Tax Income		126,237		89,656		41	%		130,514		(3	)%
Net Income		80,917		55,628		45	%		81,723		(1	)%
Income for basic earnings per common share:
Net income attributable to RJF, Inc. common shareholders		$78,293		$53,241		47	%		$78,838		(1	)%
Income for diluted earnings per common share:
Net income attributable to RJF, Inc. common shareholders		$78,308		$53,245		47	%		$78,845		(1	)%
Earnings per common share:
Basic		$0.64		$0.45		42	%		$0.65		(2	)%
Diluted		$0.64		$0.45		42	%		$0.65		(2	)%

	Six Months Ended
	March 31, 2011		March 31, 2010		% Change
Total Revenues		$1,697,077		$1,452,656		17	%
Net Revenues		1,665,886		1,421,406		17	%
Pre-Tax Income		256,751		159,044		61	%
Net Income		162,640		98,531		65	%
Income for basic earnings per common share:
Net income attributable to RJF, Inc. common shareholders		$157,128		$94,361		67	%
Income for diluted earnings per common share:
Net income attributable to RJF, Inc. common shareholders		$157,145		$94,367		67	%
Earnings per common share1:
Basic		$1.29		$0.79		63	%
Diluted		$1.29		$0.79		63	%

	Balance Sheet Data
	March 31, 2011		September 30, 2010
Total assets	$ 15.3 bil.		$ 17.9 bil.
Shareholders' equity	$ 2,508 mil.		$ 2,303 mil.
Book value per share		$20.42		$19.03

2

	Management Data
	Quarter Ended
	March 31, 2011		March 31, 2010		December 31, 2010		September 30, 2010
PCG Financial Advisors:
United States		4,472		4,531		4,489		4,503
Canada		443		444		442		442
United Kingdom		151		133		149		145
# Lead managed:
Corporate public offerings in U.S.		12		9		12		7
Corporate public offerings in Canada		16		6		14		5
Financial Assets Under Management:
Managed Accounts (excluding
Money Market Funds)	$ 35.6 billion		$ 29.3 billion		$ 33.4 billion		$ 30.0 billion
Client Assets Under Administration	$ 275 billion		$ 242 billion		$ 262 billion		$ 249 billion
Client Margin Balances	$1,537 million		$1,401 million		$1,511 million		$1,437 million

3

	Three Months Ended
	March 31, 2011			March 31, 2010			% Change			December 31, 2010			% Change
	(in thousands)
Revenues:
Private Client Group		$556,632			$469,264			19	%		$519,431			7	%
Capital Markets		177,409			149,770			18	%		173,026			3	%
Asset Management		55,341			48,616			14	%		55,587			-
RJ Bank		69,099			71,530			(3	)%		77,441			(11	)%
Emerging Markets		11,962			3,884			208	%		8,589			39	%
Securities Lending		1,479			2,218			(33	)%		1,750			(15	)%
Proprietary Capital		(275	)		12,683			(102	)%		670			(141	)%
Other		3,574			2,038			75	%		3,403			5	%
Intersegment Eliminations		(8,477	)		(10,016	)		15	%		(9,564	)		11	%
Total Revenues		$866,744			$749,987			16	%		$830,333			4	%
Pre-Tax Income:
Private Client Group		$45,990			$36,543			26	%		$55,740			(17	)%
Capital Markets		33,689			21,999			53	%		24,646			37	%
Asset Management		15,227			11,235			36	%		15,594			(2	)%
RJ Bank		42,256			30,822			37	%		46,464			(9	)%
Emerging Markets		1,192			(1,570	)		176	%		321			271	%
Securities Lending		330			646			(49	)%		524			(37	)%
Proprietary Capital		(4,032	)		(42	)	NM				(142	)	NM
Other		(8,415	)		(9,977	)		16	%		(12,633	)		33	%
Pre-Tax Income		$126,237			$89,656			41	%		$130,514			(3	)%

	Six Months Ended
	March 31, 2011			March 31, 2010			$ Change
	(in thousands)
Revenues:
Private Client Group		$1,076,063			$923,195			17	%
Capital Markets		350,435			283,543			24	%
Asset Management		110,928			98,614			12	%
RJ Bank		146,540			140,452			4	%
Emerging Markets		20,551			7,602			170	%
Securities Lending		3,229			4,093			(21	)%
Proprietary Capital		395			12,648			(97	)%
Other		6,977			3,796			84	%
Intersegment Eliminations		(18,041	)		(21,287	)		15	%
Total Revenues		$1,697,077			$1,452,656			17	%

Pre-Tax Income:
Private Client Group	$101,730		$68,255		49	%
Capital Markets	58,335		33,393		75	%
Asset Management	30,821		23,301		32	%
RJ Bank	88,720		55,459		60	%
Emerging Markets	1,513		(2,982	)	151	%
Securities Lending	854		1,333		(36	)%
Proprietary Capital	(4,174	)	(854	)	(389	)%
Other	(21,048	)	(18,861	)	(12	)%
Pre-Tax Income	$256,751		$159,044		61	%

4

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Quarter-to-Date
(in thousands, except per share amounts)
	Three Months Ended
	March 31, 2011			March 31, 2010		% Change			December 31, 2010			% Change
Revenues:
Securities commissions and fees		$563,710			$479,302		18	%		$534,139			6	%
Investment banking		63,131			44,839		41	%		58,969			7	%
Investment advisory fees		52,441			42,218		24	%		52,216			-
Interest		96,811			93,275		4	%		104,386			(7	)%
Net trading profits		15,246			10,170		50	%		6,322			141	%
Financial service fees		41,291			39,286		5	%		41,788			(1	)%
Other		34,114			40,897		(17	)%		32,513			5	%
Total revenues		866,744			749,987		16	%		830,333			4	%
Interest expense		14,687			15,548		(6	)%		16,504			(11	)%
Net revenues		852,057			734,439		16	%		813,829			5	%
Non-interest expenses:
Compensation, commissions and benefits		579,587			497,419		17	%		551,884			5	%
Communications and information processing		36,380			32,445		12	%		31,145			17	%
Occupancy and equipment costs		26,773			25,892		3	%		26,229			2	%
Clearance and floor brokerage		9,447			8,828		7	%		9,917			(5	)%
Business development		22,820			20,614		11	%		23,945			(5	)%
Investment sub-advisory fees		7,867			6,827		15	%		6,904			14	%
Bank loan loss provision		8,637			19,937		(57	)%		11,232			(23	)%
Other		36,308			28,269		28	%		25,827			41	%
Total non-interest expenses		727,819			640,231		14	%		687,083			6	%
Income including noncontrolling interests and before provision for income taxes		124,238			94,208		32	%		126,746			(2	)%
Provision for income taxes		45,320			34,028		33	%		48,791			(7	)%
Net income including noncontrolling interests		78,918			60,180		31	%		77,955			1	%
Net (loss) income attributable to noncontrolling interests		(1,999	)		4,552		(144	)%		(3,768	)		47	%
Net income attributable to Raymond James Financial		$80,917			$55,628		45	%		$81,723			(1	)%
Net Income per common share basic		$0.64			$0.45		42	%		$0.65			(2	)%
Net Income per common share diluted		$0.64			$0.45		42	%		$0.65			(2	)%
Weighted average common shares
outstanding-basic		122,396			119,288					121,155
Weighted average common and common equivalent shares outstanding-diluted		123,265			119,580					121,534

5

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Year-to-Date
(in thousands, except per share amounts)
	Six Months Ended
	March 31, 2011			March 31, 2010		% Change
Revenues:
Securities commissions and fees		$1,097,849			$948,453		16	%
Investment banking		122,100			70,557		73	%
Investment sub-advisory fees		104,657			86,193		21	%
Interest		201,197			184,647		9	%
Net trading profits		21,568			21,807		(1	)%
Financial service fees		83,079			76,068		9	%
Other		66,627			64,931		3	%
Total revenues		1,697,077			1,452,656		17	%
Interest expense		31,191			31,250		-
Net revenues		1,665,886			1,421,406		17	%
Non-interest expenses:
Compensation, commissions
and benefits		1,131,471			968,498		17	%
Communications and information processing		67,525			60,519		12	%
Occupancy and equipment costs		53,002			52,607		1	%
Clearance and floor brokerage		19,364			17,330		12	%
Business development		46,765			40,495		15	%
Investment sub-advisory fees		14,771			13,385		10	%
Bank loan loss provision		19,869			42,772		(54	)%
Other		62,135			64,479		(4	)%
Total non-interest expenses		1,414,902			1,260,085		12	%
Income including noncontrolling interests and before provision for income taxes		250,984			161,321		56	%
Provision for income taxes		94,111			60,513		56	%
Net income including noncontrolling interests		156,873			100,808		56	%
Net (loss) income attributable to noncontrolling interests		(5,767	)		2,277		(353	)%
Net income applicable to Raymond James Financial, Inc.		$162,640			$98,531		65	%
Net income per common share-basic		$1.29			$0.79		63	%
Net income per common share-diluted		$1.29			$0.79		63	%
Weighted average common shares outstanding-basic		121,752			118,981
Weighted average common and common equivalent shares outstanding-diluted		122,238			119,234

6

Raymond James Bank, FSB (RJ Bank) is a federally chartered savings bank, regulated by the Office of Thrift Supervision (OTS), which provides residential, consumer and commercial loans, as well as FDIC-insured deposit accounts, to clients of Raymond James Financial, Inc. (RJF) broker-dealer subsidiaries and to the general public. RJ Bank also purchases residential whole loan packages to hold for investment and is active in bank participations and corporate loan syndications. RJ Bank operates from a single branch location adjacent to the Raymond James headquarters complex in St. Petersburg, Florida. RJ Bank’s deposits consist predominately of cash balances swept from the client investment accounts carried by Raymond James & Associates, Inc. (RJ&A) in the Raymond James Bank Deposit Program (RJBDP).

Corporate & Commercial Real Estate Loan Portfolio

RJ Bank's corporate and commercial real estate loan portfolio is comprised of commercial lines of credit and term loans and project finance real estate loans. Approximately 90% of the corporate loan portfolio is participations in Shared National Credits (SNC) or other large syndicated loans. The SNCs are loan syndications totaling over $20 million that are shared among three or more regulated institutions. RJ Bank is sometimes involved in the syndication of the loan at inception and some of these loans have been purchased in secondary trading markets. The remainder of the corporate loan portfolio is comprised of smaller loan participations and direct loans. Regardless of the source, all loans are independently underwritten to RJ Bank credit policies, are subject to loan committee approval, and credit quality is continually monitored by the corporate lending staff. The corporate lending staff has direct access and a regular dialogue with the borrowers’ management teams. Approximately 40% of the corporate borrowers also have a capital markets relationship with RJ&A. More than half of RJ Bank's corporate borrowers are public companies. RJ Bank's corporate loans are generally secured by all assets of the borrower and in some instances are secured by mortgages on specific real estate. In a limited number of transactions, loans in the portfolio are extended on an unsecured basis. During the most recent quarter, Corporate and Commercial Real Estate Banking closed 40 new loan transactions representing $519 million in new loan commitments.

Residential Loan Portfolio

RJ Bank's residential loan portfolio consists primarily of first mortgage loans originated by RJ Bank via referrals from RJF Private Client Group financial advisors, and first mortgage loans purchased by RJ Bank, originated by select large financial institutions. These purchased mortgage loans represent approximately 90% of RJ Bank's residential portfolio. Approximately 93% of the residential loans are fully documented loans, and 99% of the residential loan portfolio is to owner-occupant borrowers for their primary or second home residences. Virtually all of RJ Bank's residential mortgage loans are adjustable rate mortgage (ARM) loans. Approximately 45% of first lien residential mortgage loans are ARMs with interest-only payments based on a fixed rate for an initial period of the loan, typically 3-5 years, then become fully amortizing, subject to annual and lifetime interest rate caps. RJ Bank does not originate or purchase option ARM loans with negative amortization, payment options, reverse mortgages, or other types of exotic loan products. Loans with deeply discounted teaser rates are not originated or purchased. Originated 15 or 30-year fixed rate mortgages are typically sold to correspondents and only retained on an exception basis. All of RJ Bank’s residential first mortgage loans are serviced by the seller or by third party professional firms. Mortgage Banking closed and funded $51 million in retail mortgage loan production in the most recent quarter. Residential borrower credit scores at the time of origination are continuously monitored as an indicator of credit quality as the portfolio mix changes with new loans or pay downs. The most recent weighted average credit score for the residential loan portfolio was 751, virtually unchanged from prior quarters. Loan-to-value (LTV) ratios at time of origination are similarly tracked with the most recent weighted-average LTV at 65%.

Asset Quality

During the quarter, the Allowance for Loan Losses (ALL) as a percentage of total loans increased slightly from 2.34% to 2.37%. Total net loan charge-offs for the current quarter were $8.5 million, compared to the prior quarter’s $12.3 million. Net charge-offs in the corporate loan portfolio totaled $3.4 million compared to $6.4 million in the prior quarter. The remaining $5.1 million in net charge-offs were taken on residential mortgage loans, which were slightly lower than last quarter’s $5.9 million. Loan loss provision expense for the current quarter was $8.6 million, compared to the previous quarter’s provision expense of $11.2 million. Due to lower charge-offs and generally improving credit quality, less provision expense was recorded in the current quarter than in the prior quarter. Over 30 day past-due residential mortgage loans showed an improving trend as delinquencies decreased by 0.21% compared to the prior quarter’s decrease of only 0.01%. Total nonperforming loans decreased by $3.8 million during the current quarter, compared to the prior quarter’s decrease of $17.3 million, which included two sizable resolutions. Other Real Estate Owned (OREO) balances decreased during the current quarter to $20.0 million from $20.8 million. Although relatively static from quarter to quarter, there is turnover in the OREO portfolio as RJ Bank experienced 12 residential OREO sales and13 new foreclosed properties during the current quarter.

Investments

RJ Bank’s investment portfolio consists of mortgage backed securities and Federal Home Loan Bank (FHLB) stock. About 45% of the portfolio is invested in relatively short average-life floating rate government agency securities. Most of the remaining mortgage-backed securities portfolio is comprised of non-agency collateralized mortgage obligations (CMOs). Current characteristics of each security owned such as delinquency and foreclosure levels, credit enhancement, projected losses and coverage are reviewed monthly by management.

All mortgage securities are classified as Available for Sale and the fair value reported includes an aggregate pretax unrealized loss of $39.6 million. These securities have experienced losses in fair value due to ongoing economic uncertainty, the residential housing market downturn and continued illiquidity in the markets. Certain securities were considered to be other-than-temporarily impaired (OTTI) as of March 31, 2011. Even though there is no intent to sell these securities and it is highly unlikely the securities will be required to be sold, RJ Bank does not expect to recover the amortized cost basis of these securities in full, and therefore, recorded $3.2 million of OTTI loss in other revenue during the quarter. This is based on RJ Bank’s evaluation of the performance and underlying characteristics of the securities, including the level of current and estimated credit losses relative to the level of credit enhancement, which are subject to change depending on a number of factors such as economic conditions, changes in home prices, delinquency and foreclosure statistics, among others.

7

$ in thousands           UNAUDITED	Three Months			Three Months			Three Months			Three Months			Three Months
	Ended			Ended			Ended			Ended			Ended
	03/31/2011			12/31/2010			9/30/2010			6/30/2010			3/31/2010
Net Revenues(1)		$65,636			$73,482	(2)		$62,097			$65,033			$66,881
Net Interest Income		$66,786			$74,353	(2)		$64,286			$62,466			$67,202
Loan Loss Provision Expense		$8,637			$11,232			$20,543			$17,098			$19,937
Pre-tax Income		$42,256			$46,464	(2)		$27,365			$29,185			$30,822
Net Interest Margin
(% Earning Assets)		3.53	%		3.70	%(2)		3.46	%		3.32	%		3.50	%
Net Interest Spread (Interest-Earning
(Assets Yield – Cost Of Funds)		3.50	%		3.67	%(2)		3.43	%		3.29	%		3.48	%
	As of			As of			As of			As of			As of
	03/31/2011			12/31/2010			9/30/2010(8)			6/30/2010			3/31/2010
Total Assets		$7,574,468			$7,570,337			$10,818,240			$7,462,415			$7,620,012
Adjusted Total Assets(3)								$7,334,287
Total Loans, Net		$6,028,387			$6,104,133			$6,094,929			$6,169,613			$6,236,923
Total Deposits		$6,711,204			$6,682,396			$7,463,671	(3)		$6,469,727			$6,731,459
Raymond James Bank Deposit
Program Deposits (RJBDP)		$6,433,102			$6,407,199			$6,805,412	(3)		$6,124,753			$6,399,841
Available for Sale Securities,
at Fair Value		$353,659			$385,153			$424,452			$424,336			$455,766
Net Unrealized Loss on Available
For Sale Securities, Before Tax		$(39,629	)		$(42,848	)		$(50,586	)		$(59,489	)		$(68,898	)
Tangible Common Equity/ Total
Assets		10.84	%		10.80	%		11.71	% (7)		11.20	%		10.65	%
Total Capital (to Risk-Weighted Assets)(10)		13.2	%		13.2	%		14.2	% (7)		13.8	%		13.6	%
Tier I Capital (to Adjusted Assets)(10)		11.1	%		11.1	%		12.1	% (7)		11.7	%		11.2	%
Commercial Real Estate Loans(4)		$861,067			$936,287			$1,003,181			$1,000,946			$1,091,991
Commercial Loans(4)		$3,506,678			$3,404,934			$3,235,746			$3,229,736			$3,061,930
Residential/Consumer Loans(4)		$1,849,362			$1,952,890			$2,042,095			$2,122,977			$2,269,696
Allowance for Loan Losses		$146,115			$146,024			$147,084			$147,091			$148,358
Allowance for Loan Losses
(as % Loans)		2.37	%		2.34	%		2.36	%		2.33	%		2.32	%
Net Charge-offs		$8,546			$12,292			$20,550			$18,365			$20,743
Nonperforming Loans(5)		$132,830			$136,662			$153,983			$153,741			$141,214
Other Real Estate Owned		$19,968			$20,773			$27,925			$22,770			$25,389
Total Nonperforming Assets(6)		$152,798			$157,435			$181,908			$176,511			$166,603
Nonperforming Assets
(as % of Total Assets)		2.02	%		2.08	%		2.48	%(7)		2.37	%		2.19	%
Total Nonperforming Assets/Tangible
Common Equity + Allowance for
Loan Losses (Texas Ratio)		15.79	%		16.34	%		18.09	%		17.95	%		17.36	%
Total Criticized Loans(9)		$462,342			$451,046			$630,688			$623,472			$532,840
1-4 Family Residential Loans
over 30 days past due
(as % Residential Loans)		4.34	%		4.55	%		4.56	%		4.60	%		4.18	%
1-4 Family Mortgage	4.2% CA(11)			4.5% CA(11)			4.8% CA(7) (11)			5.1% CA(11)			5.5% CA(11)
Geographic Concentration	3.0% FL			3.1% FL			3.2% FL(7)			3.5% NY			3.8% NY
(top 5 states, dollars	2.6% NY			2.9% NY			3.2% NY(7)			3.4% FL			3.4% FL
outstanding as a	1.3% NJ			1.4% NJ			1.5% NJ(7)			1.6% NJ			1.7% NJ
percent of Adjusted Total Assets)	1.1% VA			1.1% VA			1.2% VA(7)			1.3% VA			1.3% VA
Number of Corporate Borrowers		303			295			283			285			270

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Outstanding Balances of Corporate and Commercial Real Estate Loans by Industry Category at 03/31/11 (in millions)
Corporate Loan Portfolio		Commercial Real Estate Loan Portfolio
Telecommunications	$348.4	Hospitality	$194.8
Consumer Products/Services	317.1	Retail	163.2
Media	240.5	Multi-Family	145.8
Healthcare Providers (Non-Hospitals)	221.6	Office	133.1
Automotive/Transportation	173.8	Industrial Warehouse	105.4
Office Equipment/Business Systems	172.3	Mixed Use	43.4
Hospitals	171.8	Healthcare/Senior Living Facilities	33.3
Restaurants	155.9	Commercial Acquisition and
Defense/Government Contractors	155.2	Development	23.4
Chemicals	149.3	Special Purpose	12.4
Finance/Insurance	139.0	Condominium	3.9
Technology	133.7	Residential Acquisition and
Pharmaceuticals	133.1	Development	2.3
Gaming	126.5	Total Commercial Real Estate
Retail	122.2	Loan Portfolio	$861.0	*
Energy	114.9
Sports	113.8
Natural Gas Pipeline	100.3
Industrial Manufacturing	98.6	*Of this total, $345.5 million represents loans to Real Estate
Mining and Minerals	91.8	Investment Trusts and $61.5 million represents construction
Food and Beverage	79.0	loans.
Private Banking	57.9
Environmental Services	54.3
Government Guaranteed SBA/USDA	20.9
Medical Products	10.2
Agriculture	4.6
Total Commercial Loan Portfolio	$3,506.7

(1)   Net Revenues equal gross revenue, which includes interest income and non-interest income (including securities losses), less interest expense.

(2)   Net Revenues, Net Interest Income and Pre-tax Income were positively impacted by a $6.4 million interest accrual error correction recorded during the quarter ended 12/31/10. This adjustment increased both Net Interest Margin and Net Interest Spread by 0.09% for the quarter ended December 31, 2010.

(3)   At 9/30/10, total assets were adjusted to exclude the approximately $700 million in additional RJBDP deposits, which were redirected to other RJBDP participating banks in early October, 2010, the approximately $400 million in deposits from affiliates which were subsequently withdrawn on 10/01/10, and the $2.4 billion overnight FHLB advance repaid on 10/01/10. See information in footnote 8 below for additional information.

(4)   Outstanding loan balances are shown gross of unearned income and deferred expenses.

(5)   Nonperforming Loans includes 90+ days Past Due plus Nonaccrual Loans.

(6)   Includes Nonperforming Loans and Other Real Estate Owned.

(7)   Tangible Common Equity, Total Capital and Tier I Capital as well as Nonperforming Assets and Concentration ratios are presented as a percent of Adjusted Total Assets (see note 3 above). Had Total Assets (GAAP assets) been used in the calculation of these ratios at 09/30/10, the resulting disclosures would have been as follows:  Tangible Common Equity to Total Assets of 7.94%; Total Capital to Risk-Weighted Assets of 13.0%; Tier I Capital (to Adjusted Assets) of 8.2%; Nonperforming Assets to Total Assets of 1.68%; and Geographic Concentrations for CA, FL, NY, NJ, and VA of 3.3%, 2.2%, 2.1%, 1.0%, and 0.8%, respectively.

(8)   In order to meet point-in-time regulatory balance sheet composition requirements related to its qualifying as a thrift institution at 09/30/10, RJ Bank held an additional $3.5 billion in qualifying assets funded by a $2.4 billion overnight FHLB advance, deposits of approximately $400 million from affiliates, and additional deposits of approximately $700 million from the RJBDP. The deposits from affiliates were withdrawn and the FHLB advance was repaid on 10/01/10. The RJBDP deposits were redirected to other RJBDP participating banks in early October, 2010.

(9)   Represents the loan balance for all loans in the Special Mention, Substandard, Doubtful and Loss classifications as utilized by the banking regulators. In accordance with its accounting policy, RJ Bank does not have any loan balances within the Loss classification as loans or a portion thereof, which are considered to be uncollectible, are charged-off prior to the assignment of this classification.

(10)   Estimated for the current quarter.

(11)   This concentration ratio for the state of CA excludes 2.4% at 03/31/10 and 12/31/10, 2.3% at 09/30/10 and 1.5% at 06/30/10 and 03/31/10, for purchased loans that have full repurchase recourse for any delinquent loans.

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