Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Nov. 22, 2013 | Mar. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'RAYMOND JAMES FINANCIAL INC | ' | ' |
Entity Central Index Key | '0000720005 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $5,666,158,883 |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 140,059,971 | ' |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Cash and cash equivalents | $2,596,616 | [1] | $1,980,020 | [1] |
Assets segregated pursuant to regulations and other segregated assets | 4,064,827 | [2] | 2,784,199 | [2] |
Securities purchased under agreements to resell and other collateralized financings | 709,120 | 565,016 | ||
Financial instruments, at fair value: | ' | ' | ||
Trading instruments | 579,705 | 804,272 | ||
Available for sale securities | 698,844 | 733,874 | ||
Private equity investments | 216,391 | 336,927 | ||
Other investments | 248,512 | 310,806 | ||
Derivative instruments associated with offsetting matched book positions | 250,341 | 458,265 | ||
Receivables: | ' | ' | ||
Brokerage clients, net | 1,983,340 | 2,067,117 | ||
Stock borrowed | 146,749 | 200,160 | ||
Bank loans, net | 8,821,201 | 7,991,512 | ||
Brokers-dealers and clearing organizations | 243,101 | 225,306 | ||
Loans to financial advisors, net | 409,080 | 445,497 | ||
Other | 407,329 | 427,641 | ||
Deposits with clearing organizations | 126,405 | [3] | 163,848 | [3] |
Prepaid expenses and other assets | 611,425 | 605,566 | ||
Investments in real estate partnerships held by consolidated variable interest entities | 272,096 | 299,611 | ||
Property and equipment, net | 244,416 | 231,195 | ||
Deferred income taxes, net | 195,160 | 168,187 | ||
Goodwill and identifiable intangible assets, net | 361,464 | 361,246 | ||
Total assets | 23,186,122 | 21,160,265 | ||
Liabilities and equity: | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 220,656 | 232,436 | ||
Securities sold under agreements to repurchase | 300,933 | 348,036 | ||
Derivative instruments associated with offsetting matched book positions, at fair value | 250,341 | 458,265 | ||
Payables: | ' | ' | ||
Brokerage clients | 5,942,843 | 4,584,656 | ||
Stock loaned | 354,377 | 423,519 | ||
Bank deposits | 9,295,371 | [4] | 8,599,713 | [4] |
Broker-dealers and clearing organizations | 109,611 | 103,164 | ||
Trade and other | 630,344 | 628,734 | ||
Other borrowings | 84,076 | 0 | ||
Accrued compensation, commissions and benefits | 741,787 | 690,654 | ||
Loans payable of consolidated variable interest entities | 62,938 | 81,713 | ||
Corporate debt | 1,194,508 | 1,329,093 | ||
Total liabilities | 19,187,785 | 17,479,983 | ||
Commitments and contingencies (See Note 20) | ' | ' | ||
Equity | ' | ' | ||
Preferred stock; $.10 par value; authorized 10,000,000 shares; issued and outstanding -0- shares | 0 | 0 | ||
Common stock; $.01 par value; authorized 350,000,000 shares; issued 144,559,772 at September 30, 2013 and 142,853,667 at September 30, 2012 | 1,429 | 1,404 | ||
Additional paid-in capital | 1,136,298 | 1,030,288 | ||
Retained earnings | 2,635,026 | 2,346,563 | ||
Treasury stock, at cost; 5,002,666 common shares at September 30, 2013 and 5,117,049 common shares at September 30, 2012 | -120,555 | -118,762 | ||
Accumulated other comprehensive income | 10,726 | 9,447 | ||
Total equity attributable to Raymond James Financial, Inc. | 3,662,924 | 3,268,940 | ||
Noncontrolling interests | 335,413 | 411,342 | ||
Total equity | 3,998,337 | 3,680,282 | ||
Total liabilities and equity | $23,186,122 | $21,160,265 | ||
[1] | The total amounts presented include cash and cash equivalents of $1.02 billion and $539 million as of September 30, 2013 and 2012, respectively, which are either held directly by RJF or are otherwise invested by one of our subsidiaries on behalf of RJF, and are available without restrictions. | |||
[2] | Consists of cash maintained in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934. RJ&A (and MK & Co. as of September 30, 2012) as broker-dealers carrying client accounts as of each respective date, are subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of their clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. | |||
[3] | Consists of deposits of cash and cash equivalents or other short-term securities held by other clearing organizations or exchanges. | |||
[4] | Bank deposits exclude affiliate deposits of approximately $6 million and $1 million at September 30, 2013 and 2012, respectively. |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.10 | $0.10 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 144,559,772 | 142,853,667 |
Treasury stock, shares (in shares) | 5,002,666 | 5,117,049 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Revenues: | ' | ' | ' | |||
Securities commissions and fees | $3,007,711 | $2,535,484 | $2,190,436 | |||
Investment banking | 288,251 | 223,579 | 251,183 | |||
Investment advisory fees | 282,755 | 223,850 | 216,750 | |||
Interest | 473,599 | 453,258 | 392,318 | |||
Account and service fees | 363,531 | 319,718 | 286,523 | |||
Net trading profits | 34,069 | 55,538 | 27,506 | |||
Other | 145,882 | 86,473 | 35,170 | |||
Total revenues | 4,595,798 | [1] | 3,897,900 | [1] | 3,399,886 | [1] |
Interest expense | 110,371 | 91,369 | 65,830 | |||
Net revenues | 4,485,427 | 3,806,531 | 3,334,056 | |||
Non-interest expenses: | ' | ' | ' | |||
Compensation, commissions and benefits | 3,054,027 | 2,620,058 | 2,270,735 | |||
Communications and information processing | 257,366 | 195,895 | 137,605 | |||
Occupancy and equipment costs | 157,449 | 134,199 | 108,600 | |||
Clearance and floor brokerage | 40,253 | 39,422 | 38,461 | |||
Business development | 124,387 | 118,712 | 94,875 | |||
Investment sub-advisory fees | 37,112 | 29,210 | 30,100 | |||
Bank loan loss provision | 2,565 | 25,894 | 33,655 | |||
Acquisition related expenses | 73,454 | 59,284 | 0 | |||
Loss on auction rate securities repurchased | 0 | 0 | 41,391 | |||
Other | 144,904 | 115,936 | 127,889 | |||
Total non-interest expenses | 3,891,517 | 3,338,610 | 2,883,311 | |||
Income including noncontrolling interests and before provision for income taxes | 593,910 | 467,921 | 450,745 | |||
Provision for income taxes | 197,033 | 175,656 | 182,894 | |||
Net income including noncontrolling interests | 396,877 | 292,265 | 267,851 | |||
Net income (loss) attributable to noncontrolling interests | 29,723 | -3,604 | -10,502 | |||
Net income attributable to Raymond James Financial, Inc. | 367,154 | 295,869 | 278,353 | |||
Net income per common share - basic (in dollars per share) | $2.64 | $2.22 | $2.20 | |||
Net income per common share - diluted (in dollars per share) | $2.58 | $2.20 | $2.19 | |||
Weighted-average common shares outstanding - basic | 137,732 | 130,806 | 122,448 | |||
Weighted-average common and common equivalent shares outstanding - diluted | 140,541 | 131,791 | 122,836 | |||
Other comprehensive income, net of tax: | ' | ' | ' | |||
Change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses | 15,042 | [2] | 12,886 | [2] | 2,621 | [2] |
Change in currency translations and net investment hedges | -13,763 | [2] | 6,166 | [2] | -6,029 | [2] |
Total comprehensive income | 368,433 | [2] | 314,921 | [2] | 274,945 | [2] |
Other-than-temporary impairment: | ' | ' | ' | |||
Total other-than-temporary impairment, net | 3,755 | 17,144 | -11,977 | |||
Portion of pre-tax (recoveries) losses recognized in other comprehensive income | -4,391 | -22,419 | 1,743 | |||
Net impairment losses recognized in other revenue | ($636) | ($5,275) | ($10,234) | |||
[1] | No individual client accounted for more than ten percent of total revenues in any of the years presented. | |||||
[2] | All components of other comprehensive income, net of tax, are attributable to Raymond James Financial, Inc. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common stock, par value $.01 per share [Member] | Shares exchangeable into common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Treasury stock [Member] | Accumulated other comprehensive income [Member] | Total equity attributable to Raymond James Financial, Inc. [Member] | Noncontrolling interests [Member] | |||||
In Thousands, unless otherwise specified | ||||||||||||||
Balance, beginning of year at Sep. 30, 2010 | ' | $1,244 | $3,119 | $476,359 | $1,909,865 | ($81,574) | ($6,197) | [1] | ' | $294,052 | ||||
Changes in Shareholders' Equity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Issuance of shares, registered public offering | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | |||||
Exchanged | [2] | ' | ' | -3,119 | ' | ' | ' | ' | ' | ' | ||||
Employee stock purchases | ' | ' | ' | 10,699 | ' | ' | ' | ' | ' | |||||
Purchases/surrenders | ' | ' | ' | ' | ' | -22,710 | ' | ' | ' | |||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | ' | ' | ' | 32,675 | ' | 5,220 | ' | ' | ' | |||||
Restricted stock, stock option and restricted stock unit expense | ' | ' | ' | 38,551 | ' | ' | ' | ' | ' | |||||
Excess tax benefit (deficiency) from share-based payments | ' | ' | ' | -374 | ' | ' | ' | ' | ' | |||||
Purchase of additional equity interest in subsidiary | ' | ' | ' | 0 | ' | ' | ' | ' | ' | |||||
Issuance of stock as consideration for acquisition | ' | ' | ' | 4,011 | [3] | ' | 4,291 | ' | ' | ' | ||||
Net change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | 2,621 | [4] | ' | ' | ' | ' | ' | 2,621 | [1] | ' | ' | |||
Net change in currency transactions and net investment hedges, net of tax | [1] | ' | ' | ' | ' | ' | ' | -6,029 | ' | ' | ||||
Net income (loss) attributable to noncontrolling interests | 10,502 | ' | ' | ' | ' | ' | ' | ' | -10,502 | |||||
Capital contributions | ' | ' | ' | ' | ' | ' | ' | ' | 33,633 | |||||
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | -9,971 | |||||
Consolidation of acquired entity | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Consolidation of low income housing tax credit funds not previously consolidated | ' | ' | ' | ' | ' | ' | ' | ' | 14,635 | |||||
Consolidation of private equity partnerships | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Deconsolidation of previously consolidated low income housing tax credit funds | ' | ' | ' | ' | ' | ' | ' | ' | -6,789 | |||||
Derecognition resulting from acquisition of additional interests | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Net income attributable to Raymond James Financial, Inc. | 278,353 | ' | ' | ' | 278,353 | ' | ' | ' | ' | |||||
Cash dividends declared | ' | ' | ' | ' | -65,808 | ' | ' | ' | ' | |||||
Other | ' | 27 | [2] | ' | 3,214 | [2] | 3,408 | -227 | ' | ' | 9,168 | |||
Total equity attributable to Raymond James Financial, Inc. | ' | ' | ' | ' | ' | ' | ' | 2,587,619 | ' | |||||
Balance, end of year at Sep. 30, 2011 | 2,911,845 | 1,271 | 0 | 565,135 | 2,125,818 | -95,000 | -9,605 | [1] | ' | 324,226 | ||||
Changes in Shareholders' Equity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Issuance of shares, registered public offering | [5] | ' | 111 | ' | 362,712 | ' | ' | ' | ' | ' | ||||
Exchanged | ' | ' | 0 | ' | ' | ' | ' | ' | ' | |||||
Employee stock purchases | ' | ' | ' | 16,150 | ' | ' | ' | ' | ' | |||||
Purchases/surrenders | ' | ' | ' | ' | ' | -19,416 | ' | ' | ' | |||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | ' | ' | ' | 23,181 | ' | -4,346 | ' | ' | ' | |||||
Restricted stock, stock option and restricted stock unit expense | ' | ' | ' | 52,538 | ' | ' | ' | ' | ' | |||||
Excess tax benefit (deficiency) from share-based payments | ' | ' | ' | 2,613 | ' | ' | ' | ' | ' | |||||
Purchase of additional equity interest in subsidiary | ' | ' | ' | 1,224 | ' | ' | ' | ' | ' | |||||
Issuance of stock as consideration for acquisition | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | |||||
Net change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | 12,886 | [4] | ' | ' | ' | ' | ' | 12,886 | [1] | ' | ' | |||
Net change in currency transactions and net investment hedges, net of tax | [1] | ' | ' | ' | ' | ' | ' | 6,166 | ' | ' | ||||
Net income (loss) attributable to noncontrolling interests | 3,604 | ' | ' | ' | ' | ' | ' | ' | -3,604 | |||||
Capital contributions | ' | ' | ' | ' | ' | ' | ' | ' | 38,073 | |||||
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | -18,294 | |||||
Consolidation of acquired entity | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Consolidation of low income housing tax credit funds not previously consolidated | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Consolidation of private equity partnerships | ' | ' | ' | ' | ' | ' | ' | ' | 78,394 | |||||
Deconsolidation of previously consolidated low income housing tax credit funds | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Derecognition resulting from acquisition of additional interests | ' | ' | ' | ' | ' | ' | ' | ' | -665 | |||||
Net income attributable to Raymond James Financial, Inc. | 295,869 | ' | ' | ' | 295,869 | ' | ' | ' | ' | |||||
Cash dividends declared | ' | ' | ' | ' | -70,286 | ' | ' | ' | ' | |||||
Other | ' | 22 | ' | 6,735 | -4,838 | 0 | ' | ' | -6,788 | |||||
Total equity attributable to Raymond James Financial, Inc. | 3,268,940 | ' | ' | ' | ' | ' | ' | 3,268,940 | ' | |||||
Balance, end of year at Sep. 30, 2012 | 3,680,282 | 1,404 | 0 | 1,030,288 | 2,346,563 | -118,762 | 9,447 | [1] | ' | 411,342 | ||||
Changes in Shareholders' Equity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Issuance of shares, registered public offering | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | |||||
Exchanged | ' | ' | 0 | ' | ' | ' | ' | ' | ' | |||||
Employee stock purchases | ' | ' | ' | 18,319 | ' | ' | ' | ' | ' | |||||
Purchases/surrenders | ' | ' | ' | ' | ' | -8,214 | ' | ' | ' | |||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | ' | ' | ' | 30,640 | ' | 6,421 | ' | ' | ' | |||||
Restricted stock, stock option and restricted stock unit expense | ' | ' | ' | 58,689 | ' | ' | ' | ' | ' | |||||
Excess tax benefit (deficiency) from share-based payments | ' | ' | ' | 2,590 | ' | ' | ' | ' | ' | |||||
Purchase of additional equity interest in subsidiary | ' | ' | ' | -4,531 | ' | ' | ' | ' | ' | |||||
Issuance of stock as consideration for acquisition | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | |||||
Net change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | 15,042 | [4] | ' | ' | ' | ' | ' | 15,042 | [1] | ' | ' | |||
Net change in currency transactions and net investment hedges, net of tax | [1] | ' | ' | ' | ' | ' | ' | -13,763 | ' | ' | ||||
Net income (loss) attributable to noncontrolling interests | -29,723 | ' | ' | ' | ' | ' | ' | ' | 29,723 | |||||
Capital contributions | ' | ' | ' | ' | ' | ' | ' | ' | 30,052 | |||||
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | -148,871 | |||||
Consolidation of acquired entity | [6] | ' | ' | ' | ' | ' | ' | ' | ' | 7,592 | ||||
Consolidation of low income housing tax credit funds not previously consolidated | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Consolidation of private equity partnerships | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Deconsolidation of previously consolidated low income housing tax credit funds | ' | ' | ' | ' | ' | ' | ' | ' | 0 | |||||
Derecognition resulting from acquisition of additional interests | ' | ' | ' | ' | ' | ' | ' | ' | 4,126 | |||||
Net income attributable to Raymond James Financial, Inc. | 367,154 | ' | ' | ' | 367,154 | ' | ' | ' | ' | |||||
Cash dividends declared | ' | ' | ' | ' | -78,208 | ' | ' | ' | ' | |||||
Other | ' | 25 | ' | 303 | -483 | 0 | ' | ' | 1,449 | |||||
Total equity attributable to Raymond James Financial, Inc. | 3,662,924 | ' | ' | ' | ' | ' | ' | 3,662,924 | ' | |||||
Balance, end of year at Sep. 30, 2013 | $3,998,337 | $1,429 | $0 | $1,136,298 | $2,635,026 | ($120,555) | $10,726 | [1] | ' | $335,413 | ||||
[1] | All components of other comprehensive income are attributable to Raymond James Financial, Inc. | |||||||||||||
[2] | During the year ended September 30, 2011, approximately 243,000 exchangeable shares were exchanged for common stock on a one-for-one basis. | |||||||||||||
[3] | In April, 2011, we acquired Howe Barnes, Hoefer & Arnett (“Howe Barnesâ€) by exchanging RJF shares for all issued and outstanding shares of Howe Barnes. | |||||||||||||
[4] | All components of other comprehensive income, net of tax, are attributable to Raymond James Financial, Inc. | |||||||||||||
[5] | During the year ended September 30, 2012, in a registered public offering, 11,075,000 common shares were issued generating approximately $363 million in net proceeds (after consideration of the underwriting discount and direct expenses of the offering). | |||||||||||||
[6] | On December 24, 2012, we acquired a 45% interest in ClariVest Asset Management, LLC, see Notes 1 and 3 for discussion. |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Number of exchangeable shares exchanged for common stock (in shares) | 0 | 0 | 243,000 |
Proceeds from Issuance or Sale of Equity [Abstract] | ' | ' | ' |
Issuance of shares, registered public offering, number of shares | 0 | 11,075,000 | 0 |
Proceeds from issuance of shares in registered public offering | $0 | $362,823 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
Cash flows from operating activities: | ' | ' | ' | ||
Net income attributable to Raymond James Financial, Inc. | $367,154 | $295,869 | $278,353 | ||
Net income (loss) attributable to noncontrolling interests | 29,723 | -3,604 | -10,502 | ||
Net income including noncontrolling interests | 396,877 | 292,265 | 267,851 | ||
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ' | ' | ' | ||
Depreciation and amortization | 66,359 | 51,445 | 40,337 | ||
Deferred income taxes | -31,789 | 2,044 | -6,008 | ||
Premium and discount amortization on available for sale securities and unrealized/realized gain on other investments | -80,631 | -35,462 | -13,001 | ||
Provisions for loan losses, legal proceedings, bad debts and other accruals | 13,944 | 32,605 | 52,639 | ||
Share-based compensation expense | 61,862 | 55,729 | 40,978 | ||
Goodwill impairment expenses | 6,933 | [1] | 0 | 0 | |
Other | 23,158 | 17,805 | 50,250 | ||
Net change in: | ' | ' | ' | ||
Assets segregated pursuant to regulations and other segregated assets | -1,280,628 | 889,684 | -116,231 | ||
Securities purchased under agreements to resell and other collateralized financings, net of securities sold under agreements to repurchase | -191,207 | -209,656 | -98,196 | ||
Stock loaned, net of stock borrowed | -15,731 | -357,956 | 153,248 | ||
Repayments of loans (loans provided) to financial advisors | 20,341 | -220,722 | -15,963 | ||
Brokerage client receivables and other acounts receivable, net | 88,162 | 144,047 | -70,499 | ||
Trading instruments, net | 252,101 | 102,876 | 80,740 | ||
Prepaid expenses and other assets | -66,448 | 12,914 | -13,418 | ||
Brokerage client payables and other accounts payable | 1,307,607 | -424,867 | 1,312,192 | ||
Accrued compensation, commissions and benefits | 50,318 | 59,987 | 34,187 | ||
Proceeds from sales of securitizations and loans held for sale, net of purchases and originations of loans held for sale | 41,167 | -18,836 | -138,559 | ||
Excess tax benefits from stock-based payment arrangements | -2,590 | -2,613 | -2,106 | ||
Net cash provided by operating activities | 659,805 | 391,289 | 1,558,441 | ||
Cash flows from investing activities: | ' | ' | ' | ||
Additions to property and equipment | -72,879 | -77,515 | -37,200 | ||
Increase in loans, net | -1,063,301 | -1,523,071 | -384,550 | ||
Proceeds from sale of loans held for investment | 198,676 | 71,640 | 48,236 | ||
Redemptions of Federal Home Loan/Federal Reserve Bank stock, net | 1,067 | 31,049 | 61,508 | ||
Sales (purchases) of private equity and other investments, net | 229,136 | -82,707 | 26,210 | ||
Acquisition of controlling interest in subsidiary | 0 | 0 | -6,354 | ||
Purchases of available for sale securities | -62,102 | -249,379 | -238,768 | ||
Available for sale securities maturations, repayments and redemptions | 117,435 | 173,189 | 130,063 | ||
Proceeds from sales of available for sale securities | 4,793 | 0 | 13,761 | ||
Investments in real estate partnerships held by consolidated variable interest entities, net of other investing activity | 1,651 | -800 | -13,049 | ||
Business acquisition, net of cash acquired | -6,450 | -1,073,621 | 0 | ||
Net cash used in investing activities | -651,974 | -2,731,215 | -400,143 | ||
Cash flows from financing activities: | ' | ' | ' | ||
Proceeds from borrowed funds, net | 258,776 | 1,256,459 | 249,498 | ||
Repayments of borrowed funds, net | -309,597 | -550,564 | -2,561,324 | ||
Proceeds from issuance of shares in registered public offering | 0 | 362,823 | 0 | ||
Repayments of borrowings by consolidated variable interest entities which are real estate partnerships | -22,613 | -23,145 | -23,679 | ||
Proceeds from capital contributed to and borrowings of consolidated variable interest entities which are real estate partnerships | 23,485 | 30,546 | 33,229 | ||
Purchase of additional equity interest in subsidiary | -553 | -4,017 | 0 | ||
Exercise of stock options and employee stock purchases | 55,997 | 33,811 | 47,383 | ||
Increase in bank deposits | 695,658 | 860,391 | 659,604 | ||
Purchase of treasury stock | -11,718 | -20,860 | -23,111 | ||
Dividends on common stock | -76,593 | -68,782 | -63,090 | ||
Excess tax benefits from share-based payment arrangements | 2,590 | 2,613 | 2,106 | ||
Net cash provided by (used in) financing activities | 615,432 | 1,879,275 | -1,679,384 | ||
Currency adjustment: | ' | ' | ' | ||
Effect of exchange rate changes on cash | -6,667 | 976 | -824 | ||
Net increase (decrease) in cash and cash equivalents | 616,596 | -459,675 | -521,910 | ||
Increase in cash resulting from the consolidation of an acquired entity and the acquisition of a controlling interest in a subsidiary | 0 | 0 | 18,366 | ||
Cash and cash equivalents at beginning of year | 1,980,020 | [2] | 2,439,695 | 2,943,239 | |
Cash and cash equivalents at end of year | 2,596,616 | [2] | 1,980,020 | [2] | 2,439,695 |
Supplemental disclosures of cash flow information: | ' | ' | ' | ||
Cash paid for interest | 106,818 | 91,453 | 55,332 | ||
Cash paid for income taxes | 189,730 | 176,539 | 194,233 | ||
Non-cash transfers of loans to other real estate owned | $3,072 | $12,653 | $14,198 | ||
[1] | The impairment expense in the year ended September 30, 2013 is associated with the RJES reporting unit. We concluded the goodwill associated with this reporting unit to be completely impaired during the quarter ended March 31, 2013. Since we did not own 100% of RJES as of the goodwill impairment testing date, for the year ended September 30, 2013 the effect of this impairment expense on the pre-tax income attributable to Raymond James Financial, Inc. is approximately $4.6 million and the portion of the impairment expense attributable to the noncontrolling interests is approximately $2.3 million. | ||||
[2] | The total amounts presented include cash and cash equivalents of $1.02 billion and $539 million as of September 30, 2013 and 2012, respectively, which are either held directly by RJF or are otherwise invested by one of our subsidiaries on behalf of RJF, and are available without restrictions. |
INTRODUCTION_AND_BASIS_OF_PRES
INTRODUCTION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
INTRODUCTION AND BASIS OF PRESENTATION | ' |
INTRODUCTION AND BASIS OF PRESENTATION | |
Description of business | |
Raymond James Financial, Inc. (“RJF”) is a financial holding company headquartered in Florida whose broker-dealer subsidiaries are engaged in various financial service businesses, including the underwriting, distribution, trading and brokerage of equity and debt securities and the sale of mutual funds and other investment products. In addition, other subsidiaries of RJF provide investment management services for retail and institutional clients, corporate and retail banking, and trust services. As used herein, the terms “we,” “our” or “us” refer to RJF and/or one or more of its subsidiaries. | |
Basis of presentation | |
The consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100% owned subsidiaries. In addition we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 in the section titled, “Evaluation of VIEs to determine whether consolidation is required” and in Note 11. When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation. | |
Fiscal Year 2013 Acquisition | |
On December 24, 2012, we completed our acquisition of a 45% interest in ClariVest Asset Management, LLC (“ClariVest”), an acquisition that bolsters our platform in the large-cap investment objective. See Note 3 for additional information. | |
Fiscal Year 2012 Acquisition | |
On April 2, 2012 (the “Closing Date”) RJF completed its acquisition of all of the issued and outstanding shares of Morgan Keegan & Company, Inc. (a broker-dealer hereinafter referred to as “MK & Co.”) and MK Holding, Inc. and certain of its affiliates (collectively referred to hereinafter as “Morgan Keegan”) from Regions Financial Corporation (“Regions”). This acquisition expands both our private client and our capital markets businesses. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of Morgan Keegan recorded as of the acquisition date at their respective fair values and consolidated in our financial statements, see Note 3 for further information regarding our acquisition of Morgan Keegan. The results of operations of Morgan Keegan have been included in our results prospectively from April 2, 2012. | |
Fiscal Year 2011 Acquisitions | |
As of April 1, 2011, we completed our acquisition of Howe Barnes. The Howe Barnes stockholders received 217,088 shares of our common stock valued at $8.3 million in exchange for all of the outstanding Howe Barnes shares. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of Howe Barnes recorded as of the acquisition date at their respective fair value and consolidated in our financial statements. Howe Barnes’ results of operations have been included in our results prospectively from April 1, 2011. | |
As of April 4, 2011, one of our wholly owned subsidiaries increased its pre-existing share of ownership in Raymond James European Securities, S.A.S. (“RJES”) by contributing $6.4 million in cash in exchange for additional RJES shares. As a result of this acquisition of incremental RJES shares, effective with this transaction we hold a controlling interest in RJES. Accordingly, we applied the acquisition method of accounting to our interest in RJES as of the date we acquired the controlling interest, with the assets and liabilities of RJES recorded at their respective fair value and consolidated in our financial statements, and the portion we do not own included in noncontrolling interests. RJES results of operations have been included in our results prospectively from April 4, 2011. | |
Significant subsidiaries | |
As of September 30, 2013, our significant subsidiaries, all wholly owned, include: Raymond James & Associates, Inc. (“RJ&A”) a domestic broker-dealer carrying client accounts, Raymond James Financial Services, Inc. (“RJFS”) an introducing domestic broker-dealer, Raymond James Financial Services Advisors, Inc. (“RJFSA”) a registered investment advisor, Raymond James Ltd. (“RJ Ltd.”) a broker-dealer headquartered in Canada, Eagle Asset Management, Inc.(“Eagle”), and Raymond James Bank, N.A. (“RJ Bank”), a national bank. In mid-February 2013, the client accounts of MK & Co. were transferred to RJ&A pursuant to our Morgan Keegan acquisition integration strategy (see Note 3 for additional information regarding the Morgan Keegan acquisition). | |
Accounting estimates and assumptions | |
The preparation of consolidated financial statements in conformity with United States of America (“U.S.”) generally accepted accounting principles (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and could have a material impact on the consolidated financial statements. | |
Reporting period | |
Our quarters end on the last day of each calendar quarter. | |
Reclassifications | |
Effective September 30, 2013 we implemented changes in our reportable segments. These segment changes have no effect on the historical financial results of operations. Prior period segment balances impacted by this change have been reclassified to conform to the current presentation. See Note 28 for additional information related to this change. | |
Certain other prior period amounts, none of which are material, have been reclassified to conform to the current year’s presentation. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Recognition of revenues | ||
Securities commissions & fees | ||
The significant components of our securities commissions and fees revenue include the following: | ||
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 the customer which, in certain cases, may include varying discounts. | |
b. | Fee revenues include certain asset-based fees. These fees include trailing commissions from mutual funds and variable annuities/insurance products, which are recorded ratably over the period earned. | |
c. | Fee revenues also include the 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. Such fees are earned from the services provided by investment advisor representatives (“IARs”) and registered investment advisors (“RIAs”) who affiliate with us. | |
Financial advisors may choose to affiliate with us as either an employee of RJ&A, and thus operate under the RJ&A registered investment advisor (“RIA”) license, or as an independent contractor affiliated with RJFS. If affiliated with RJFS, the financial advisor may choose to provide such advisory services either under their own RIA license, or under the RIA license of RJFSA, a wholly owned RIA that exclusively supports the investment advisory activities of financial advisors affiliated with RJFS. | ||
The revenue recognition and related expense policies associated with the generation of advisory fees from each of these affiliation alternatives are as follows: | ||
i. | Investment advisory service fee revenues earned by employee financial advisors (IARs of RJ&A) are presented in securities commissions and fees revenue on a gross basis. The RJ&A IARs are paid compensation which is computed as a percentage of the revenues generated and which is recorded as a component of compensation, commissions and benefits expense. | |
ii. | Investment advisory service fee revenues earned by independent contractors who are registered representatives (“RR”) with RJFS are also registered with RJFSA and offer investment advisory services under RJFSA’s RIA license as an IAR of RJFSA are presented in securities fees and commissions revenue on a gross basis. These financial advisors are paid a portion of the revenues generated which is recorded as a component of compensation, commissions and benefits expense. | |
iii. | Independent RIA firms that are owned and operated by a financial advisor who is an independent contractor registered as a RR with RJFS, may receive administrative and custodial services provided by RJFS as introducing broker-dealer firm to RJ&A. These independent RIA 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. | |
iv. | 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 provided through RJFS. 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. | |
d. | Insurance commission revenues and related expenses are recognized when the delivery of the insurance contract is confirmed by the carrier, the premium is remitted to the insurance company and the contract requirements are met. | |
e. | Annuity commission revenues and related expenses are recognized when the signed annuity contract and premium is submitted to the annuity carrier. | |
Investment banking | ||
Investment banking revenues are recorded at the time a transaction is completed and the related income is reasonably determinable. Investment banking revenues include management fees and underwriting fees, net of reimbursable expenses, earned in connection with the distribution of the underwritten securities, merger and acquisition fees, private placement fees and limited partnership distributions. Securities received in connection with investment banking transactions are carried at fair value. | ||
We distribute our proprietary equity research products to our client base of institutional investors at no charge. | ||
Investment advisory fees | ||
We provide advice, research and administrative services for customers participating in both our managed and non-managed investment programs. These revenues are generated by our asset management businesses for administering and managing portfolios, funds and separate accounts. These asset management services are provided to individual investment portfolios, mutual funds and managed programs. We earn investment advisory fees based on the value of clients’ portfolios which are held in either managed or non-managed programs. Fees are computed based on balances either at the beginning of the quarter, the end of the quarter, or average assets. These fees are recorded ratably over the period earned. | ||
Account and service fees | ||
Account and service fees primarily include transaction fees, annual account fees, service charges, exit fees, servicing fees, fees generated in lieu of interest income from a multi-bank sweep program with unaffiliated banks, money market processing and distribution fees and correspondent clearing fees. The annual account fees such as IRA fees and distribution fees are recognized as earned over the term of the contract. The transaction fees are earned and collected from clients as trades are executed. Servicing fees such as omnibus, education and marketing support fees, and no-transaction fee program revenues are paid to us for marketing and administrative services and are recognized as earned. Under clearing agreements, we clear trades for unaffiliated correspondent brokers and retain a portion of commissions as a fee for our services. Correspondent clearing revenues are recorded net of commissions remitted. Total commissions generated by correspondents were $35.5 million, $33.5 million, and $39.3 million and commissions remitted totaled $32.6 million, $31.2 million, and $36.1 million for the years ended September 30, 2013, 2012, and 2011 respectively. | ||
Cash and cash equivalents | ||
Our cash equivalents include money market funds or highly liquid investments with original maturities of 90 days or less, other than those used for trading purposes. | ||
Assets segregated pursuant to regulations and other segregated assets | ||
In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, RJ&A (and MK & Co. as of September 30, 2012), as broker-dealers carrying client accounts, are subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of their clients. In addition, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. Segregated assets at September 30, 2013 and 2012 consist of cash and cash equivalents. | ||
RJ Bank maintains interest-bearing bank deposits that are restricted for pre-funding letter of credit draws related to certain syndicated borrowing relationships in which RJ Bank is involved and occasionally pledged as collateral for Federal Home Loan Bank of Atlanta (“FHLB”) advances. In addition, RJ Bank maintains cash in an interest-bearing pass-through account at the Federal Reserve Bank in accordance with Regulation D of the Federal Reserve Act, which requires depository institutions to maintain minimum average reserve balances against its deposits. | ||
Repurchase agreements and other collateralized financings | ||
We purchase securities under short-term agreements to resell (“Reverse Repurchase Agreements”). Additionally, we sell securities under agreements to repurchase (“Repurchase Agreements”). Both Reverse Repurchase Agreements and Repurchase Agreements are accounted for as collateralized financings and are carried at contractual amounts plus accrued interest. Our policy is to obtain possession of collateral with a market value equal to or in excess of the principal amount loaned under the Reverse Repurchase Agreements. To ensure that the market value of the underlying collateral remains sufficient, the securities are valued daily, and cash is obtained from or returned to the counterparty when contractually required. These Reverse Repurchase Agreements may result in credit exposure in the event the counterparty to the transaction is unable to fulfill its contractual obligations. Other collateralized financings include secured call loans receivable held by RJ Ltd. These financings represent loans of excess cash to financial institutions which are fully collateralized by Canadian treasury bills or provincial obligations and bear interest at call loan rates. | ||
Financial instruments owned, financial instruments sold but not yet purchased and fair value | ||
Financial instruments owned and financial instruments sold, but not yet purchased are recorded at fair value. Fair value is defined by GAAP as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants on the measurement date. | ||
In determining the fair value of our financial instruments in accordance with GAAP, we use various valuation approaches, including market and/or income approaches. Fair value is a market-based measure considered from the perspective of a market participant. As such, even when assumptions from market participants are not readily available, our own assumptions reflect those that we believe market participants would use in pricing the asset or liability at the measurement date. GAAP provides for the following three levels to be used to classify our fair value measurements: | ||
Level 1-Financial instruments included in Level 1 are highly liquid instruments with quoted prices in active markets for identical assets or liabilities. These include equity securities traded in active markets and certain U. S. Treasury securities, other governmental obligations, or publicly traded corporate debt securities. | ||
Level 2-Financial instruments reported in Level 2 include those that have pricing inputs that are other than quoted prices in active markets, but which are either directly or indirectly observable as of the reporting date (i.e., prices for similar instruments). Instruments that are generally included in this category are equity securities that are not actively traded, corporate obligations infrequently traded, certain government and municipal obligations, interest rate swaps, certain asset-backed securities (“ABS”), certain collateralized mortgage obligations (“CMOs”), certain mortgage-backed securities (“MBS”), our derivative instruments and nonrecurring fair value measurements for certain loans held for sale, impaired loans and other real estate owned (“OREO”). | ||
Level 3-Financial instruments reported in Level 3 have little, if any, market activity and are measured using our best estimate of fair value, where the inputs into the determination of fair value are both significant to the fair value measurement and unobservable. These valuations require significant judgment or estimation. Instruments in this category generally include: equity securities with unobservable inputs such as those investments made in our proprietary capital activities, certain non-agency CMOs, certain non-agency ABS, pools of interest-only Small Business Administration (“SBA”) loan strips (“I/O Strips”), certain municipal and corporate obligations which include auction rate securities (“ARS”) and nonrecurring fair value measurements for certain impaired loans. | ||
GAAP requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when performing our fair value measurements. The availability of observable inputs can vary from instrument to instrument and in certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement of an instrument requires judgment and consideration of factors specific to the instrument. | ||
We offset our long and short positions for a particular security recorded at fair value as part of our trading instruments (long positions) and trading instruments sold but not yet purchased (short positions), when the long and short positions have identical Committee on Uniform Security Identification Procedures numbers (“CUSIPs”). | ||
Valuation techniques | ||
The fair value for certain of our financial instruments is derived using pricing models and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of our financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available will generally have a higher degree of price transparency than financial instruments that are thinly traded or not quoted. In accordance with GAAP, the criteria used to determine whether the market for a financial instrument is active or inactive is based on the particular asset or liability. For equity securities, our definition of actively traded is based on average daily volume and other market trading statistics. We have determined the market for certain other types of financial instruments, including certain CMOs, ABS, certain collateralized debt obligations and ARS, to be volatile, uncertain or inactive as of both September 30, 2013 and 2012. As a result, the valuation of these financial instruments included significant management judgment in determining the relevance and reliability of market information available. We considered the inactivity of the market to be evidenced by several factors, including a continued decreased price transparency caused by decreased volume of trades relative to historical levels, stale transaction prices and transaction prices that varied significantly either over time or among market makers. | ||
The specific valuation techniques utilized for the categorization of financial instruments presented in our Consolidated Statements of Financial Condition are described below: | ||
Trading instruments and trading instruments sold but not yet purchased | ||
Trading instruments are comprised primarily of the financial instruments held by our broker-dealer subsidiaries. These instruments are recorded at fair value with unrealized gains and losses reflected in current period net income. | ||
When available, we use quoted prices in active markets to determine the fair value of our trading securities. Such instruments are classified within Level 1 of the fair value hierarchy. Examples include exchange traded equity securities and liquid government debt securities. | ||
When instruments are traded in secondary markets and quoted market prices do not exist for such securities, we utilize valuation techniques including matrix pricing to estimate fair value. Matrix pricing generally utilizes spread-based models periodically re-calibrated to observable inputs such as market trades or to dealer price bids in similar securities in order to derive the fair value of the instruments. Valuation techniques may also rely on other observable inputs such as yield curves, interest rates and expected principal repayments and default probabilities. Instruments valued using these inputs are typically classified within Level 2 of the fair value hierarchy. Examples include certain municipal debt securities, corporate debt securities, agency MBS, and restricted equity securities in public companies. We utilize prices from independent services to corroborate our estimate of fair value. Depending upon the type of security, the pricing service may provide a listed price, a matrix price or use other methods including broker-dealer price quotations. | ||
The fair value for SBA loan securitizations is determined by utilizing observable prices obtained from a third party pricing service. The third party pricing service provides comparable price evaluations utilizing observable market data for similar securities. We substantiate the prices obtained from the third party pricing service by comparing such prices for a sample of securities to observable market trades obtained from external sources. The instruments valued using these observable inputs are typically classified within Level 2 of the fair value hierarchy. | ||
Positions in illiquid securities that do not have readily determinable fair values require significant judgment or estimation. For these securities we use pricing models, discounted cash flow methodologies or similar techniques. Assumptions utilized by these techniques include estimates of future delinquencies, loss severities, defaults and prepayments or redemptions. Securities valued using these techniques are classified within Level 3 of the fair value hierarchy. For certain CMOs, where there has been limited activity or less transparency around significant inputs to the valuation, such as assumptions regarding performance of the underlying mortgages, these securities are currently classified within Level 3 of the fair value hierarchy. | ||
I/O Strip securities do not trade in an active market with readily observable prices. Accordingly, we use valuation techniques that consider a number of factors including: (a) the original cost of the pooled underlying SBA loans from which the I/O Strip securities were created, and any changes from the original to the hypothetical cost of buying similar loans under current market conditions; (b) seasoning of the underlying SBA loans in the pool that back the I/O strip securities; (c) the type and nature of the pooled SBA loans backing the I/O Strip securities; (d) actual and assumed prepayment rates on the underlying pools of SBA loans; and (e) market data for past trades in comparable I/O Strip securities. Prices from independent sources are used to corroborate our estimates of fair value. Our I/O Strip securities are recorded in “other securities” within our trading instruments on our Consolidated Statements of Financial Condition. These fair value measurements use significant unobservable inputs and accordingly, we classify them as Level 3 of the fair value hierarchy. | ||
Available for sale securities | ||
Available for sale securities are comprised primarily of MBS, CMOs and other equity securities held predominately by RJ Bank (the “RJ Bank AFS Securities”) and ARS held by a non-broker-dealer subsidiary of RJF (collectively referred to as the “RJF AFS Securities”). | ||
Interest on the RJF AFS Securities is recognized in interest income on an accrual basis. For the RJ Bank AFS Securities, discounts are accreted and premiums are amortized as an adjustment to yield over the estimated remaining life of the security. A combination of the level factor and straight-line methods is used for such securities, the effect of which does not differ materially from the effective interest method. When a principal reduction occurs on a RJ Bank AFS Security, any related premium or discount is recognized as an adjustment to yield in the results of operations in the period in which the principal reduction occurs. | ||
Realized gains and losses on sales of any RJF AFS Securities are recognized using the specific identification method and reflected in other revenue in the period they are sold. | ||
Unrealized gains or losses on any RJF AFS Securities, except for those that are deemed to be other-than-temporary, are recorded through other comprehensive income and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”). | ||
For any RJF AFS Securities in an unrealized loss position at a reporting period end, we make an assessment whether such securities are impaired on an other-than-temporary basis. In order to evaluate our risk exposure and any potential impairment of these securities, on at least a quarterly basis, we review the characteristics of each security owned such as, where applicable, collateral type, delinquency and foreclosure levels, credit enhancement, projected loan losses, collateral coverage, the presence of U.S. government or government agency guarantees, and issuer credit rating. The following factors are considered in order to determine whether an impairment is other-than-temporary: our intention to sell the security, our assessment of whether it is more likely than not that we will be required to sell the security before the recovery of its amortized cost basis, and whether the evidence indicating that we will recover the amortized cost basis of a security in full outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to period end, recent events specific to the issuer or industry and forecasted performance of the security. | ||
We intend and have the ability to hold the RJF AFS Securities to maturity. We have concluded that it is not more likely than not that we will be required to sell these available for sale securities before the recovery of their amortized cost basis. Those securities whose amortized cost basis we do not expect to recover in full are deemed to be other-than-temporarily impaired and are written down to fair value with the credit loss portion of the write-down recorded as a realized loss in other revenue and the non-credit portion of the write-down recorded, net of deferred taxes, in shareholders’ equity as a component of AOCI. The credit loss portion of the write-down is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security. | ||
For any RJF AFS Securities, we estimate the portion of loss attributable to credit using a discounted cash flow model. For RJ Bank AFS Securities, our discounted cash flow model utilizes relevant assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. These assumptions are subject to change depending on a number of factors such as economic conditions, changes in home prices, delinquency and foreclosure statistics, among others. Events that may trigger material declines in fair values or additional credit losses for these securities in the future would include, but are not limited to, deterioration of credit metrics, significantly higher levels of default and severity of loss on the underlying collateral, deteriorating credit enhancement and loss coverage ratios, or further illiquidity. Expected principal and interest cash flows on the impaired debt security are discounted using the effective interest rate implicit in the security at the time of acquisition. The previous amortized cost basis of the security less the other-than-temporary impairment (“OTTI”) recognized in earnings establishes the new cost basis for the security. | ||
The fair value of agency and senior non-agency securities included within the RJ Bank AFS Securities is determined by obtaining third party pricing service bid quotations from two independent pricing services. Third party pricing service bid quotations are based on either current market data, or for any securities traded in markets where the trading activity has slowed such as the CMO market, the most recently available market data. The third party pricing services provide comparable price evaluations utilizing available market data for similar securities. The market data the third party pricing services utilize for these price evaluations includes observable data comprised of benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data including market research publications, and loan performance experience. In order to validate that the pricing information used by the primary third party pricing service is observable, we request, on a quarterly basis, some of the key market data available for a sample of senior securities and compare this data to that which we observed in our independent accumulation of market information. Securities valued using these valuation techniques are classified within Level 2 of the fair value hierarchy. | ||
For senior non-agency securities within the RJ Bank AFS Securities where a significant difference exists between the primary third party pricing service bid quotation and the secondary third party pricing service, we utilize a discounted cash flow analysis to determine which third party price quote is most representative of fair value under the current market conditions. The fair values for all except three senior non-agency securities at September 30, 2013 were based on the respective primary third party pricing service bid quotation. Securities measured using these valuation techniques are generally classified within Level 2 of the fair value hierarchy. | ||
For the one subordinated non-agency security in the RJ Bank AFS Securities portfolio as of September 30, 2013 and 2012, we estimate its fair value by utilizing discounted cash flow analyses, using observable market data, where available, as well as our own unobservable inputs. The unobservable inputs utilized in our valuation reflect our own suppositions about the assumptions that market participants would use in pricing this security, including those about future delinquencies, loss severities, defaults, prepayments and discount rates. This security is classified within Level 3 of the fair value hierarchy. | ||
ARS are long-term variable rate securities tied to short-term interest rates that were intended to be reset through a “Dutch auction” process, which generally occurs every seven to 35 days. Holders of ARS were at one time able to liquidate their holdings to prospective buyers by participating in the auctions. During 2008, the Dutch auction process failed and holders were no longer able to liquidate their holdings through the auction process. The fair value of the ARS holdings is estimated based on internal pricing models. The pricing model takes into consideration the characteristics of the underlying securities, as well as multiple inputs including the issuer and its credit quality, data from any recent trades, the expected timing of redemptions and an estimated yield premium that a market participant would require over otherwise comparable securities to compensate for the illiquidity of the ARS. These inputs require significant management judgment and accordingly, these securities are classified within Level 3 of the fair value hierarchy. | ||
Derivative contracts | ||
We enter into interest rate swaps and futures contracts either as part of our fixed income business to facilitate customer transactions, to hedge a portion of our trading inventory, or to a limited extent, for our own account. These derivatives are accounted for as trading account assets or liabilities and recorded at fair value in the Consolidated Statements of Financial Condition. Any realized or unrealized gains or losses are recorded in net trading profits within the Consolidated Statements of Income and Comprehensive Income with any interest earned thereon recorded in interest income. The fair value of any cash collateral exchanged as part of the interest rate swap contract is netted, by-counterparty, against the fair value of the derivative instrument. The fair value of these interest rate derivative contracts is obtained from internal pricing models that consider current market trading levels and the contractual prices for the underlying financial instruments, as well as time value, yield curve and other volatility factors underlying the positions. Since our model inputs can be observed in a liquid market and the models do not require significant judgment, such derivative contracts are classified within Level 2 of the fair value hierarchy. We utilize values obtained from third party derivatives dealers to corroborate the output of our internal pricing models. | ||
We also facilitate matched book derivative transactions through non-broker-dealer subsidiaries, either Raymond James Financial Products, LLC or Morgan Keegan Capital Services, LLC (collectively referred to as the Raymond James matched book swap subsidiaries or “RJSS”). The only difference in the swap businesses conducted by these two subsidiary entities is that they utilize different third party financial institutions to facilitate the offsetting transaction. RJSS enters into derivative transactions (primarily interest rate swaps) with customers of RJ&A. For every derivative transaction RJSS enters into with a customer, it enters into an offsetting transaction with terms that mirror the customer transaction, with a credit support provider who is a third party financial institution. Any collateral required to be exchanged under these derivative contracts is administered directly by the customer and the third party financial institution. RJSS does not hold any collateral, or administer any collateral transactions, related to these instruments. We record the value of each derivative position held at fair value, as either an asset or an offsetting liability, presented as “derivative instruments associated with offsetting matched book positions”, as applicable, on our Consolidated Statements of Financial Condition. Fair value is determined using an internal model which includes inputs from independent pricing sources to project future cash flows under each underlying derivative contract. The cash flows are discounted to determine the present value. Since any changes in fair value are completely offset by an opposite change in the offsetting transaction position, there is no net impact on our Consolidated Statements of Income and Comprehensive Income from changes in the fair value of these derivative instruments. RJSS recognizes revenue on derivative transactions on the transaction date, computed as the present value of the expected cash flows RJSS expects to receive from the third party financial institution over the life of the derivative contract. The difference between the present value of these cash flows at the date of inception and the gross amount potentially received is accreted to revenue over the term of the contract. The revenue from these transactions is included within other revenues on our Consolidated Statements of Income and Comprehensive Income. | ||
RJ Bank enters into three-month forward foreign exchange contracts to hedge the risk related to their investment in their Canadian subsidiary. These derivatives are recorded at fair value on the Consolidated Statements of Financial Condition, the majority of which are designated as net investment hedges. The effective portion of the related gain or loss is recorded, net of tax, in shareholders’ equity as part of the cumulative translation adjustment component of AOCI with such balance impacting earnings in the event the net investment is sold or substantially liquidated. Gains and losses on the undesignated derivative instruments as well as amounts representing hedge ineffectiveness are recorded in earnings in the Consolidated Statements of Income and Comprehensive Income. Hedge effectiveness is assessed at each reporting period using a method that is based on changes in forward rates. The measurement of hedge ineffectiveness is based on the beginning balance of the foreign net investment at the inception of the hedging relationship and performed using the hypothetical derivative method. However, as the terms of the hedging instrument and hypothetical derivative match at inception, there is no expected ineffectiveness to be recorded in earnings. The fair value of any cash collateral exchanged as part of the forward exchange contracts is netted, by counterparty, against the fair value of the derivative instrument. | ||
The fair value of RJ Bank’s forward foreign exchange contracts is determined by obtaining valuations from a third party pricing service. These third party valuations are based on observable inputs such as spot rates, foreign exchange rates and both U.S. and Canadian interest rate curves. We validate the observable inputs utilized in the third party valuation model by preparing an independent calculation using a secondary, third party valuation model. These forward foreign exchange contracts are classified within Level 2 of the fair value hierarchy. | ||
Private equity investments | ||
Private equity investments are held primarily in our Other segment and consist of various direct and third party private equity and merchant banking investments, employee investment funds, and various private equity funds which we sponsor. Private equity investments include various private equity fund investments including Raymond James Employee Investment Funds I and II (collectively, the “Private Funds”). See Note 11 for further discussion of the consolidation of the Raymond James Employee Investment Funds I and II which are variable interest entities. These Private Funds invest in new and developing companies. Our investments in these Private Funds cannot be redeemed directly with the funds; our investment is monetized through distributions received through the liquidation of the underlying assets of those funds. We estimate that the underlying assets of these funds will be liquidated over the life of these funds (typically 10 to 15 years). Approval by the management of these funds is required for us to sell or transfer these investments. See Note 20 for information regarding our unfunded commitments to these funds. Merchant banking investments include ownership interests in private companies with long-term growth potential. These investments are measured at fair value with any changes recognized in our Consolidated Statements of Income and Comprehensive Income. | ||
The valuation of these investments requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity and long-term nature of these assets. As a result, these values cannot be determined with precision and the calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. | ||
Private equity investments are carried at estimated fair value. They are valued initially at the transaction price until significant transactions or developments indicate that a change in the carrying values of these investments is appropriate. The carrying values of these investments are adjusted based on financial performance, investment-specific events, financing and sales transactions with third parties and/or discounted cash flow models incorporating changes in market outlook. Investments in funds structured as limited partnerships are generally valued based on our proportionate share of the net assets of the partnership as provided by the fund manager. Investments valued using these valuation techniques are classified within Level 3 of the fair value hierarchy. | ||
Other investments | ||
Other investments consist primarily of marketable securities we hold that are associated with a deferred compensation program which was formerly sponsored by MK & Co., term deposits with Canadian financial institutions, or investments in other securities arising from the operations of RJ Ltd., and certain investments in limited partnerships (or funds) for which in a number of instances, one of our affiliates serves as the managing member or general partner (see Note 11 for information regarding such funds). | ||
Certain employees, who were at one-time associated with MK & Co., participate in deferred compensation plans. The balances associated with these plans are invested in certain marketable securities that are held by RJF until the vesting date, typically five years from the date of the deferral. A liability associated with these deferrals is reflected as a component of our trade and other liabilities on our Consolidated Statements of Financial Condition. We use quoted prices in active markets to determine the fair value of these investments. Such instruments are classified within Level 1 of the fair value hierarchy. | ||
Canadian financial institution term deposits are recorded at cost which approximates market value. These investments are classified within Level 1 of the fair value hierarchy. Certain other investments in financial instruments held by RJ Ltd. include non-agency ABS that have little, if any, market activity and are measured using our best estimate of fair value, where the inputs into the determination of fair value are both significant to the fair value measurement and unobservable. These valuations require significant judgment or estimation and are classified within Level 3 of the fair value hierarchy. | ||
The valuation of the investments in limited partnerships and funds requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity and long-term nature of these assets. As a result, these values cannot be determined with precision and the calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. Such instruments are classified within Level 3 of the fair value hierarchy. | ||
See Notes 5 and 6 for the outcome of the application of these fair value policies and procedures. | ||
Brokerage client receivables, loans to financial advisors and allowance for doubtful accounts | ||
Brokerage client receivables include receivables from the clients of our broker-dealer and asset management subsidiaries. The receivables from broker-dealer clients are principally for amounts due on cash and margin transactions and are generally collateralized by securities owned by the clients. The receivables from asset management clients are primarily for accrued investment advisory fees. Both the receivables from the asset management and broker-dealer clients are reported at their outstanding principal balance, adjusted for any allowance for doubtful accounts. When a broker-dealer receivable is considered to be impaired, the amount of the impairment is generally measured based on the fair value of the securities acting as collateral, which is measured based on current prices from independent sources such as listed market prices or broker-dealer price quotations. Securities beneficially owned by customers, including those that collateralize margin or other similar transactions, are not reflected in our Consolidated Statements of Financial Condition. | ||
We offer loans to financial advisors and certain key revenue producers, primarily for recruiting and retention purposes. These loans are generally repaid over a five to eight year period with interest recognized as earned. There is no fee income associated with these loans. We assess future recoverability of these loans through analysis of individual financial advisor production or other performance standards. Based upon the nature of these financing receivables, we do not analyze this asset on a portfolio segment or class basis. Further, the aging of this receivable balance is not a determinative factor in computing our allowance for doubtful accounts, as concerns regarding the recoverability of these loans primarily arise in the event that the financial advisor is no longer affiliated with us. In the event that the financial advisor is no longer affiliated with us, any unpaid balance of such loan becomes immediately due and payable to us. In determining the allowance for doubtful accounts related to former employees or independent contractors, management considers a number of factors including: any amounts due at termination, the reasons for the terminated relationship, the former financial advisor’s overall financial position, and our historical collection experience. When the review of these factors indicates that further collection activity is highly unlikely, the outstanding balance of such loan is written-off and the corresponding allowance is reduced. We present the outstanding balance of loans to financial advisors on our Consolidated Statements of Financial Condition, net of their applicable allowances for doubtful accounts. The allowance for doubtful accounts balance associated with all of our loans to financial advisors is $2.8 million and $2.5 million at September 30, 2013 and 2012, respectively. Of the September 30, 2013 loans to financial advisors, the portion of the balance associated with financial advisors who are no longer affiliated with us, after consideration of the allowance for doubtful accounts, is approximately $2.4 million. | ||
Securities borrowed and securities loaned | ||
Securities borrowed and securities loaned transactions are reported as collateralized financings and recorded at the amount of collateral advanced or received. In securities borrowed transactions, we are generally required to deposit cash with the lender. With respect to securities loaned, we generally receive collateral in the form of cash in an amount in excess of the market value of securities loaned. We monitor the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. | ||
Bank loans and allowances for losses | ||
Loans held for investment | ||
Bank loans are comprised of loans originated or purchased by RJ Bank and include commercial and industrial (“C&I”) loans, commercial and residential real estate loans, as well as consumer loans, which are primarily comprised of loans fully collateralized by the borrower’s marketable securities. Those loans, which we have the intent and the ability to hold until maturity or payoff, are recorded at their unpaid principal balance plus any premium paid in connection with the purchase of the loan, less the allowance for loan losses and any discounts received in connection with the purchase of the loan and net of deferred fees and costs on originated loans. Syndicated loans purchased in the secondary market are recognized as of the trade date. Interest income is recognized on an accrual basis. | ||
Loan origination fees and direct costs, as well as premiums and discounts on loans that are not revolving, are capitalized and recognized in interest income using the interest method. For revolving loans, the straight-line method is used based on the contractual term. Loan commitment fees are generally deferred, and when exercised, recognized as a yield adjustment over the life of the loan. | ||
RJ Bank segregates its loan portfolio into five portfolio segments, C&I, commercial real estate (“CRE”), CRE construction, residential mortgage and consumer. These portfolio segments also serve as the portfolio loan classes for purposes of credit analysis, except for residential mortgage loans which are further disaggregated into residential first mortgage and residential home equity classes. | ||
Loans held for sale | ||
Certain residential mortgage loans originated and intended for sale in the secondary market due to their fixed-rate terms are carried at the lower of cost or estimated fair value. The fair value of the residential mortgage loans held for sale are estimated using observable prices obtained from counterparties for similar loans. These nonrecurring fair value measurements are classified within Level 2 of the fair value hierarchy. Gains and losses on sales of these assets are included as a component of other revenue, while interest collected on these assets is included in interest income. Net unrealized losses are recognized through a valuation allowance by charges to income as a component of other revenue in the Consolidated Statements of Income and Comprehensive Income. Corporate loans are designated as held for investment upon inception and recognized in loans receivable. If we subsequently designate a corporate loan as held for sale, which generally occurs as part of a loan workout situation, we then write down the carrying value of the loan with a partial charge-off, if necessary, to carry it at the lower of cost or estimated fair value. | ||
RJ Bank purchases the guaranteed portions of SBA section 7(a) loans and accounts for these loans in accordance with the policy for loans held for sale. RJ Bank then aggregates SBA loans with similar characteristics into pools for securitization and sale to the secondary market. Individual loans may be sold prior to securitization. The determination of the fair value of the SBA loans depend upon their intended disposition. The fair value of the SBA loans to be individually sold are determined based upon their committed sales price. The fair value of loans to be aggregated into pools for securitization which are committed to be sold, are determined based upon third party price quotes. The fair value of all other SBA loans are determined using a third party pricing service. The prices for the SBA loans, other than those committed to be individually sold, are validated by comparing the third party price quote or the third party pricing service prices, as applicable, for a sample of loans to observable market trades obtained from external sources. Once the loans are securitized into a pool, the respective securities are classified as trading instruments and are carried at fair value based on RJ Bank’s intention to sell the securitizations within the near term. Any changes in the fair value of the securitized pools as well as any realized gains or losses earned thereon are reflected in net trading profits. Transfers of the securitizations are all accounted for as sales at settlement date when RJ Bank has surrendered control over the transferred assets. RJ Bank does not retain any interest in the securitizations once they are sold. | ||
Off-balance sheet loan commitments | ||
RJ Bank has outstanding at any time a significant number of commitments to extend credit and other credit-related off-balance sheet financial instruments such as standby letters of credit and loan purchases. RJ Bank’s policy is generally to require customers to provide collateral at the time of closing. The amount of collateral obtained, if it is deemed necessary by RJ Bank upon extension of credit, is based on RJ Bank’s credit evaluation of the borrower. Collateral held varies but may include assets such as: marketable securities, accounts receivable, inventory, real estate, and income-producing commercial properties. | ||
Nonperforming assets | ||
Nonperforming assets are comprised of both nonperforming loans and OREO. Nonperforming loans represent those loans which have been placed on nonaccrual status and loans which have been restructured in a manner that grant a concession to a borrower experiencing financial difficulties; loans with such restructurings are discussed further below. Additionally, any accruing loans which are 90 days or more past due and in the process of collection are considered nonperforming loans. | ||
Loans of all classes are placed on nonaccrual status when we determine that full payment of all contractual principal and interest is in doubt, or the loan is past due 90 days or more as to contractual interest or principal unless the loan, in our opinion, is well-secured and in the process of collection. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is written off against interest income and accretion of the net deferred loan origination fees cease. Interest is recognized using the cash method for residential (first mortgage and home equity) and consumer loans and the cost recovery method for corporate (C&I, CRE and CRE construction) loans thereafter until the loan qualifies for return to accrual status. Loans are returned to an accrual status when the loans have been brought contractually current with the original or amended terms and have been maintained on a current basis for a reasonable period, generally six months. | ||
Other real estate acquired in the settlement of loans, including through, or in lieu of, loan foreclosure, is initially recorded at the lower of cost or fair value less estimated selling costs through a charge to the allowance for loan losses, thus establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by RJ Bank and the assets are carried at the lower of the carrying amount or fair value, as determined by a current appraisal, or valuation less estimated costs to sell and are classified as other assets on the Consolidated Statements of Financial Condition. These nonrecurring fair value measurements are classified within Level 2 of the fair value hierarchy. Costs relating to development and improvement of the property are capitalized, whereas those relating to holding the property are charged to operations. Sales of OREO are recorded as of the settlement date and any associated gains or losses are included in other revenue on our Consolidated Statements of Income and Comprehensive Income. | ||
Troubled debt restructurings | ||
A loan restructuring is deemed to be a troubled debt restructuring (“TDR”) if we, for economic or legal reasons related to the borrowers’ financial difficulties, grant a concession we would not otherwise consider. In TDRs, for all classes of loans, the concessions granted, such as interest rate reductions, generally do not reflect current market conditions for a new loan of similar risk made to another borrower in similar financial circumstances. Other concessions for C&I, CRE and CRE construction loans may also include the reduction of the guarantor’s liability. For those restructurings of first mortgage and home equity residential mortgage loans which may reflect current market conditions, the concessions granted by RJ Bank are generally interest capitalization, principal forbearance, release of liability ordered under Chapter 7 bankruptcy not reaffirmed by the borrower, or an extension of the interest-only or maturity period. First mortgage and home equity residential mortgage TDRs may be returned to accrual status when there has been a sustained period of six months of satisfactory performance. C&I, CRE and CRE construction TDRs have generally been partially charged-off and, therefore, remain on nonaccrual status until the loan is fully resolved. | ||
Impaired loans | ||
Loans in all classes are considered to be impaired when, based on current information and events, it is probable that RJ Bank will be unable to collect the scheduled payments of principal and interest on a loan when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. RJ Bank determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. For individual loans identified as impaired, impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate and taking into consideration the factors described below in relation to the evaluation of the allowance for loan losses, except that as a practical expedient, RJ Bank measures impairment based on the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Impaired loans include all corporate nonaccrual loans, all residential mortgage nonaccrual loans for which a charge-off had previously been recorded, and all loans which have been modified in TDRs. Interest income on impaired loans is recognized consistently with the recognition policy of nonaccrual loans. | ||
Allowance for loan losses and reserve for unfunded lending commitments | ||
RJ Bank maintains an allowance for loan losses to provide for probable losses inherent in RJ Bank’s loan portfolio. Loan losses are charged against the allowance when RJ Bank believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | ||
RJ Bank has developed policies and procedures for assessing the adequacy of the allowance for loan losses that reflects the assessment of risk considering all available information. In developing this assessment, RJ Bank relies on estimates and exercises judgment in evaluating credit risk. The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Depending on changes in circumstances, future assessments of credit risk may yield materially different results from the prior estimates, which may require an increase or a decrease in the allowance for loan losses. | ||
This allowance for loan loss is comprised of two components: allowances calculated based on formulas for homogenous classes of loans collectively evaluated for impairment, and specific allowances assigned to certain classified loans individually evaluated for impairment. These homogeneous classes are a result of management’s disaggregation of the loan portfolio and are comprised of the previously mentioned classes: C&I, CRE, CRE construction, residential first mortgage, residential home equity, and consumer. | ||
The loans within the C&I, CRE and CRE construction classes are assigned to one of several internal loan grades based upon the respective loan’s credit characteristics. The loans within the residential first mortgage, residential home equity, and consumer classes are assigned loan grades equivalent to the loan classifications utilized by bank regulators, dependent on their respective likelihood of loss. We assign each loan grade for all loan classes an allowance percentage based on the perceived risk associated with that grade. The allowance for loan losses for all non-impaired loans is then calculated based on the reserve percentage assigned to the respective loan’s class and grade. The allowance for loan losses for all impaired loans (except those nonaccrual residential first mortgage loans which are collectively evaluated for impairment) is based on an individual evaluation of impairment as previously described in the “Impaired loans” section above. | ||
The qualitative and quantitative factors taken into consideration when assigning the loan grades and allowance percentages to the loans within the C&I, CRE and CRE construction loan classes include: estimates of borrower default probabilities and collateral values; trends in delinquencies; volume and terms; changes in geographic distribution, updated loan-to-value (“LTV”) ratios, lending policies, experience, ability and depth of lending management and other relevant staff, local, regional, national and international economic conditions; concentrations of credit risk; past loss history, Shared National Credit (“SNC”) reviews and examination results from bank regulators. Loan grades for individual C&I, CRE and CRE construction loans are derived from analyzing two aspects of the risk factors in a particular loan, the obligor rating and the facility (collateral) rating. The obligor rating relates to a borrower’s probability of default and the facility rating is utilized to estimate the anticipated loss given default. These two ratings, which are based on RJ Bank’s most recent two years historical loss data or historical long-term industry loss rates where RJ Bank has limited loss history, are considered in combination to derive the final C&I, CRE and CRE construction loan grades and allowance percentages. Qualitative factors, while considered and reviewed in establishing the allowance for loan losses, have generally not resulted in any significant quantitative adjustments to allowance percentages. | ||
For residential first mortgage, residential home equity and consumer loan classes, the qualitative factors considered when assigning allowance percentages include loan performance trends, loan product parameters and qualification requirements, borrower credit scores at origination, occupancy (i.e., owner occupied, second home or investment property), documentation level, loan purpose, geographic concentrations, average loan size and loan policy exceptions. These qualitative factors, while considered and reviewed in establishing the allowance for loan losses, have generally not resulted in any quantitative adjustments to RJ Bank’s historical loss rates. | ||
Historical loss rates, a quantitative factor, is utilized when assigning the allowance percentages for residential first mortgage, residential home equity and consumer loans, and are derived from estimates of the probability of default and loss given default (severity). These estimated loss rates are based on RJ Bank’s historical loss data from the eight quarters prior to the respective quarter-end. In addition to historical loss rates, one other quantitative factor utilized for the performing residential mortgage loan portfolio is updated LTV ratios. RJ Bank segregates the performing loans in the residential loan classes, on a quarterly basis, based upon updated LTV data. RJ Bank obtains the most recently available information (generally on a quarter-lag) to estimate the current LTV ratios on the individual loans in the residential mortgage loan portfolio. Current LTVs are estimated, on a loan by loan basis, utilizing the initial appraisal obtained at the time of origination, adjusted for housing price changes that have occurred since origination using current valuation indices. The value of the homes could vary from actual market values due to changes in the condition of the underlying property, variations in housing price changes within current valuation indices and other factors. The product of the default and loss severity percentages is then applied to the balance of residential first mortgages and residential home equity loan balances, which have been further stratified by updated LTV in order to calculate the related allowance for loan losses. | ||
As TDRs, regardless of the loan portfolio segment or accrual status, are impaired loans, RJ Bank evaluates its credit risk on an individual loan basis. The amount of impairment recorded on these loans is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, or if collateral dependent, based on the fair value of the collateral, less costs to sell. In addition, all redefaults (60 or more days delinquent subsequent to the loan’s modification date) on TDRs are factored into each portfolio segments’ allowance for loan losses. Qualitative information, such as geographic area and industry for TDRs and redefaulted TDRs, is considered and reviewed in the determination of expected loss rates as discussed above. | ||
RJ Bank reserves for potential losses inherent in its unfunded lending commitments using a methodology similar to that used for loans in the respective portfolio segment, based upon loan grade and expected funding probabilities for fully binding commitments. This will result in some reserve variability over different periods depending upon the mix of the loan portfolio at the time and future funding expectations. All classes of impaired loans which have unfunded lending commitments are analyzed in conjunction with the impaired reserve process described above. This reserve for unfunded lending commitments is reflected in other liabilities in our Consolidated Statements of Financial Condition. | ||
Loan charge-off policies | ||
C&I, CRE and CRE construction loans are monitored on an individual basis, and loan grades are reviewed at least quarterly to ensure they reflect the loan’s current credit risk. When RJ Bank determines that it is likely a corporate loan will not be collected in full, the loan is evaluated for potential impairment. After consideration of the borrower’s ability to restructure the loan, alternative sources of repayment, and other factors affecting the borrower’s ability to repay the debt, the portion of the loan deemed to be a confirmed loss, if any, is charged-off. For collateral-dependent loans secured by real estate, the amount of the loan considered a confirmed loss and charged-off is generally equal to the difference between the recorded investment in the loan and the collateral’s appraised value less estimated costs to sell. In instances where the individual loan under evaluation is agented by another bank, and where the agent bank has not ordered a timely update of an outdated appraisal, RJ Bank may make adjustments to previous appraised values for purposes of calculating specific reserves or taking partial charge-offs. These impaired loans are then considered to be in a workout status and we evaluate, on an ongoing basis, all factors relevant in determining the collectability and fair value of the loan. Appraisals on these impaired loans are obtained early in the impairment process as part of determining fair value and are updated as deemed necessary given the facts and circumstances of each individual situation. Certain factors such as guarantor recourse, additional borrower cash contributions or stable operations will mitigate the need for more frequent than annual appraisals. In its ongoing evaluation of each individual loan, RJ Bank may consider more frequent appraisals in locations where commercial property values are known to be experiencing a greater amount of volatility. For C&I loans, RJ Bank evaluates all sources of repayment, including the estimated liquidation value of collateral, to arrive at the amount considered to be a loss and charged off. Corporate banking and credit risk managers also hold a monthly meeting to review criticized loans (loans that are rated special mention or worse as defined by bank regulators, see Note 9 for further discussion). Additional charge-offs are taken when the value of the collateral changes or there is an adverse change in the expected cash flows. | ||
The majority of RJ Bank’s corporate loan portfolio is comprised of participations in either SNCs or other large syndicated loans in the U.S. or Canada. The SNCs are U.S. loan syndications totaling over $20 million that are shared between three or more regulated institutions. Most SNC loans are reviewed annually by the agent bank’s regulator, a process in which the other participating banks have no involvement. Once the SNC annual regulatory review process is complete, RJ Bank receives a summary of the review of these SNC credits from the Office of the Comptroller of the Currency (“OCC”). This summary includes a synopsis of each loan’s regulatory classification, loans that are designated for nonaccrual status and directed charge-offs. RJ Bank must be at least as critical with nonaccrual designations, directed charge-offs, and classifications as the OCC. This ensures that each bank participating in a SNC loan rates the loan at least as critical. Any classification changes may impact RJ Bank’s reserves and charge-offs during the quarter that the SNC information is received from the OCC, however, these differences in classifications are generally minimal given the size of the SNC loan portfolio. The amount of such adjustments depend upon the classification and whether RJ Bank had the loan classified differently (either more or less critically) than the SNC review findings and, therefore, could result in higher, lower, or no change in loan loss provisions than previously recorded. RJ Bank incorporates into its ratings process any observed regulatory trends in the annual SNC exam process, but there will inherently be differences of opinion on individual credits due to the high degree of judgment involved. With respect to its ongoing credit evaluation process of the SNC portfolio, RJ Bank conforms to what it believes will be the regulators’ view of individual credits. | ||
Every residential mortgage and consumer loan over 60 days past due is reviewed by RJ Bank personnel monthly and documented in a written report detailing delinquency information, balances, collection status, appraised value and other data points. RJ Bank senior management meets monthly to discuss the status, collection strategy and charge-off/write-down recommendations on every residential mortgage or consumer loan over 60 days past due with charge-offs considered on residential mortgage loans once the loans are delinquent 90 days or more and then generally taken before the loan is 120 days past due. A charge-off is taken against the allowance for the difference between the loan amount and the amount that RJ Bank estimates will ultimately be collected, based on the value of the underlying collateral less estimated costs to sell. RJ Bank predominantly uses broker price opinions (“BPO”) for these valuations as access to the property is restricted during the collection and foreclosure process and there is insufficient data available for a full appraisal to be performed. BPOs contain relevant and timely sale comparisons and listings in the marketplace and, therefore, we have found these BPOs to be reasonable determinants of market value in lieu of appraisals and more reliable than an automated valuation tool or the use of tax assessed values. A full appraisal is obtained post-foreclosure. RJ Bank takes further charge-offs against the owned asset if an appraisal has a lower valuation than the original BPO, but does not reverse previously charged-off amounts if the appraisal is higher than the original BPO. If a loan remains in pre-foreclosure status for more than nine months, an updated valuation is obtained and further charge-offs are taken against the allowance for loan losses, if necessary. | ||
Other assets | ||
RJ Bank carries investments in stock of the FHLB and the Federal Reserve Bank of Atlanta (the “FRB”) at cost. These investments are held in accordance with certain membership requirements, are restricted, and lack a market. FHLB and FRB stock can only be sold to the issuer or another member institution at its par value. RJ Bank annually evaluates its holdings in FHLB and FRB stock for potential impairment based upon its assessment of the ultimate recoverability of the par value of the stock. This annual evaluation is comprised of a review of the capital adequacy, liquidity position and the overall financial condition of the FHLB and FRB to determine the impact these factors have on the ultimate recoverability of the par value of the respective stock. Impairment evaluations are performed more frequently if events or circumstances indicate there may be impairment. Any cash dividends received are recognized as interest income in the Consolidated Statements of Income and Comprehensive Income. | ||
We maintain investments in a significant number of company-owned life insurance policies utilized to fund certain non-qualified deferred compensation plans and other employee benefit plans (see Notes 23 and 24 for information on the non-qualified deferred compensation plans). The life insurance policies are carried at cash surrender value as determined by the insurer. See Note 10 for additional information. | ||
Investments in real estate partnerships held by consolidated variable interest entities | ||
Raymond James Tax Credit Funds, Inc., a wholly owned subsidiary of RJF (“RJTCF”), is the managing member or general partner in low-income housing tax credit (“LIHTC”) funds, some of which require consolidation (refer to the separate discussion below of our policies regarding the evaluation of VIEs to determine if consolidation is required). These funds invest in housing project limited partnerships or limited liability companies (“LLCs”) which purchase and develop affordable housing properties qualifying for federal and state low-income housing tax credits. The balance presented is the investment in project partnership balance of all of the LIHTC funds which require consolidation. Additional information is presented below and in Note 11. | ||
Property and equipment | ||
Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation of assets is primarily provided for using the straight-line method over the estimated useful lives of the assets, which range from two to seven years for software, two to five years for furniture, fixtures and equipment and 10 to 31 years for buildings, building components, building improvements and land improvements. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the assets. | ||
Additions, improvements and expenditures that extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are charged to operations in the period incurred. Gains and losses on disposals of property and equipment are reflected in the Consolidated Statements of Income and Comprehensive Income in the period realized. | ||
Intangible assets | ||
Certain identifiable intangible assets, such as customer relationships, trade names, developed technology we acquire, and non-compete agreements, are amortized over their estimated useful lives on a straight-line method, are evaluated for potential impairment whenever events or changes in circumstances suggest that the carrying value of an asset or asset group may not be fully recoverable. | ||
The rights to service mortgage loans, known as mortgage servicing rights (“MSRs”), are an intangible asset. Our MSRs arise when RJ Bank sells residential mortgage loans and retains the associated mortgage servicing rights. RJ Bank records the estimated fair value of MSRs and amortizes MSRs in proportion to, and over the period of estimated net servicing revenue. MSRs are assessed for impairment quarterly, based on their fair value, with any impairment recognized in our Consolidated Statements of Income and Comprehensive Income. | ||
Goodwill | ||
Goodwill represents the cost of acquired businesses in excess of the fair value of the related net assets acquired. GAAP does not provide for the amortization of indefinite-life intangible assets such as goodwill. Rather, these assets are subject to an evaluation of potential impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. Goodwill impairment is determined by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not deemed to be impaired. However, if the estimated fair value is below carrying value, further analysis is required to determine the amount of the impairment. This further analysis involves assigning tangible assets and liabilities, identified intangible assets and goodwill to reporting units and comparing the fair value of each reporting unit to its carrying amount. | ||
In the course of our evaluation of the potential impairment of goodwill, we may perform either a qualitative or a quantitative assessment. Our qualitative assessment of potential impairment may result in the determination that a quantitative impairment analysis is not necessary. Under this elective process, we assess qualitative factors to determine whether the existence of events or circumstances leads us to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing the totality of events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then performing a quantitative analysis is not required. However, if we conclude otherwise, then we perform a quantitative impairment analysis. | ||
If we either choose not to perform a qualitative assessment, or we choose to perform a qualitative assessment but are unable to qualitatively conclude that no impairment has occurred, then we perform a quantitative evaluation. In the case of a quantitative assessment, we estimate the fair value of the reporting unit which the goodwill that is subject to the quantitative analysis is associated (generally defined as the businesses for which financial information is available and reviewed regularly by management) and compare it to the carrying value. If the estimated fair value of a reporting unit is less than its carrying value, we estimate the fair value of all assets and liabilities of the reporting unit, including goodwill. If the carrying value of the reporting unit’s goodwill is greater than the estimated fair value, an impairment charge is recognized for the excess. | ||
We have elected December 31 as our annual goodwill impairment evaluation date (see Note 13 for additional information regarding the outcome of our goodwill impairment assessments). | ||
Legal liabilities | ||
We recognize liabilities for contingencies when there is an exposure that, when fully analyzed, indicates it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Whether a loss is probable, and if so, the estimated range of possible loss, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and uncertainties. When a range of possible loss can be estimated, we accrue the most likely amount within that range; if the most likely amount of possible loss within that range is not determinable, we accrue a minimum based on the range of possible loss. No liability is recognized for those matters which, in managements judgment, the determination of a reasonable estimate of loss is not possible. | ||
We record liabilities related to legal proceedings in trade and other payables. The determination of these liability amounts requires significant judgment on the part of management. Management considers many factors including, but not limited to: the amount of the claim; the amount of the loss in the client’s account; the basis and validity of the claim; the possibility of wrongdoing on the part of one of our employees or financial advisors; previous results in similar cases; and legal precedents and case law. Each legal proceeding is reviewed with counsel in each accounting period and the liability balance is adjusted as deemed appropriate by management. Lastly, each case is reviewed to determine if it is probable that insurance coverage will apply, in which case the liability is reduced accordingly. Any change in the liability amount is recorded in the consolidated financial statements and is recognized as either a charge, or a credit, to net income in that period. The actual costs of resolving legal proceedings may be substantially higher or lower than the recorded liability amounts for those matters. We expense our cost of defense related to such matters in the period they are incurred. | ||
Share-based compensation | ||
We account for share-based awards through the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. The compensation cost is recognized over the requisite service period of the awards and is calculated as the market value of the awards on the date of the grant. See Note 23 for additional information. In addition, we account for share-based awards to our independent contractor financial advisors in accordance with guidance applicable to accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services and guidance applicable to accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own stock. Absent a specific performance commitment, share-based awards granted to our independent contractor financial advisors are measured at their vesting date fair value and their fair value estimated at reporting dates prior to that time. The compensation expense recognized each period is based on the most recent estimated value. Further, we classify these non-employee awards as liabilities at fair value upon vesting, with changes in fair value reported in earnings until these awards are exercised or forfeited. For purposes of measuring compensation expense these awards are revalued at each reporting date. See Note 24 for additional information. Compensation expense is recognized for all share-based compensation with future service requirements over the requisite service period using the straight-line method, and in certain instances, the graded attribution method. | ||
Deferred compensation plans | ||
We maintain various deferred compensation plans for the benefit of certain employees and independent contractors that provide a return to the participant based upon the performance of various referenced investments. For certain of these plans, we invest directly, as a principal in such investments, related to our obligations to perform under the deferred compensation plans (see the “Other Investments” discussion within the financial instruments owned, financial instruments sold but not yet purchased and fair value section of this Note 2 for further discussion of these assets). For other such plans, including our Long Term Incentive Plan (“LTIP”) and our Wealth Accumulation Plan, we purchase and hold life insurance on the lives of certain current and former participants to earn a competitive rate of return for participants and to provide a source of funds available to satisfy our obligations under the plan (see Note 10 for information regarding the carrying value of such policies). Compensation expense is recognized for all awards made under such plans with future service requirements over the requisite service period using the straight-line method. Changes in the value of the investments, as well as the expenses associated with the related deferred compensation plans, are recorded in compensation, commissions and benefits expense on our Consolidated Statements of Income and Comprehensive Income. See Notes 23 and 24 for additional information. | ||
Leases | ||
We lease office space and equipment under operating leases. We recognize rent expense related to these operating leases on a straight-line basis over the lease term. The lease term commences on the earlier of the date when we become legally obligated for the rent payments or the date on which we take possession of the property. For tenant improvement allowances and rent holidays, we record a deferred rent liability in other liabilities in the Consolidated Statements of Financial Condition and amortize the deferred rent over the lease term as a reduction to rent expense in the Consolidated Statements of Income and Comprehensive Income. In instances where the office space or equipment under an operating lease will be abandoned prior to the expiration of the lease term (these instances primarily result from the effects of acquisitions), we accrue an estimate of any projected loss in the Consolidated Statements of Income and Comprehensive Income at the time such abandonment is known and any loss is estimable. | ||
Acquisition related expense | ||
Acquisition related expenses are recorded in the Consolidated Statement of Income and Comprehensive Income and include certain incremental expenses associated with our acquisition transactions (predominately associated with our Morgan Keegan acquisition), as well as incremental costs to integrate our operations and those of Morgan Keegan. These costs do not represent recurring costs within the fully integrated combined organization. | ||
Foreign currency translation | ||
We consolidate our foreign subsidiaries and certain joint ventures in which we hold an interest. The statement of financial condition of the subsidiaries and joint ventures we consolidate are translated at exchange rates as of the period end. The statements of income are translated at an average exchange rate for the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars are included in other comprehensive income and are thereafter presented in equity as a component of AOCI. The translation gains or losses related to RJ Bank’s U.S. subsidiaries’ net investment in their Canadian subsidiary are tax affected to the extent the Canadian subsidiary’s earnings will be repatriated to the U.S. | ||
Income taxes | ||
The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year. We utilize the asset and liability method to provide income taxes on all transactions recorded in the consolidated financial statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that we expect to be in effect when the underlying items of income and expense are realized. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns, including the repatriation of undistributed earnings of foreign subsidiaries. Variations in the actual outcome of these future tax consequences could materially impact our financial position, results of operations, or liquidity. See Note 19 for further information on our income taxes. | ||
Earnings per share (“EPS”) | ||
Basic EPS is calculated by dividing earnings available to common shareholders by the weighted-average number of common shares outstanding. Earnings available to common shareholders’ represents Net Income Attributable to Raymond James Financial, Inc. reduced by the allocation of earnings and dividends to participating securities. Diluted EPS is similar to basic EPS, but adjusts for the dilutive effect of outstanding stock options by application of the treasury stock method. | ||
Evaluation of VIEs to determine whether consolidation is required | ||
A VIE requires consolidation by the entity’s primary beneficiary. Examples of entities that may be VIEs include certain legal entities structured as corporations, partnerships or limited liability companies. | ||
We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. We hold variable interests in the following VIE’s: Raymond James Employee Investment Funds I and II (the “EIF Funds”), a trust fund established for employee retention purposes (“Restricted Stock Trust Fund”), certain LIHTC funds (“LIHTC Funds”), various other partnerships and LLCs involving real estate (“Other Real Estate Limited Partnerships and LLCs”), certain new market tax credit funds (“NMTC Funds”), and certain funds formed for the purpose of making and managing investments in securities of other entities (“Managed Funds”). | ||
Determination of the primary beneficiary of a VIE | ||
We assess VIEs for consolidation when we hold variable interests in the entity. We consolidate the VIEs that are subject to assessment when we are deemed to be the primary beneficiary of the VIE. The process for determining whether we are the primary beneficiary of the VIE is to conclude whether we are a party to the VIE holding a variable interest that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE, and (2) has the obligations to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. | ||
Fiscal year 2011 impact of the adoption of new accounting consolidation guidance | ||
In fiscal year 2011, we adopted new accounting guidance regarding the consolidation of VIEs. This new guidance enacted changes in determining the primary beneficiary of a VIE and increased the frequency of required reassessments to determine whether an entity is the primary beneficiary of a VIE. Prior to this new accounting guidance, our determination of whether we were the primary beneficiary of a VIE was based upon whether we were the party to the VIE that absorbed a majority of the VIE’s expected losses, received a majority of its expected residual returns, or both. As a result of the application of the new accounting guidance, during the year ended September 30, 2011, we: | ||
(1) Deconsolidated two LIHTC Funds in which RJTCF had been deemed to be the primary beneficiary under the prior accounting guidance. These two entities had consolidated assets of approximately $3.5 million and no consolidated liabilities. Within equity, their deconsolidation resulted in an after-tax cumulative effect adjustment to retained earnings and noncontrolling interests of $3.3 million and $6.8 million, respectively. | ||
(2) Consolidated two LIHTC Funds in which RJTCF is deemed to be the primary beneficiary under the new accounting guidance. These two entities had consolidated assets of $56.8 million and consolidated liabilities of $42.1 million, and since we hold less than a 1% interest in these entities, the equity impact of their consolidation was a $14.7 million increase in noncontrolling interests. | ||
EIF Funds | ||
The EIF Funds are limited partnerships for which we are the general partner. The EIF Funds invest in certain of our private equity activities as well as other unaffiliated venture capital limited partnerships. The EIF Funds were established as compensation and retention measures for certain of our key employees. We are deemed to be the primary beneficiary and, accordingly, we consolidate the EIF Funds. | ||
Restricted Stock Trust Fund | ||
We utilize a trust in connection with certain of our restricted stock unit awards. This trust fund was established and funded for the purpose of acquiring our common stock in the open market to be used to settle restricted stock units granted as a retention vehicle for certain employees of our Canadian subsidiary. We are deemed to be the primary beneficiary and, accordingly, consolidate this trust fund. | ||
LIHTC Funds | ||
RJTCF is the managing member or general partner in a number of LIHTC Funds having one or more investor members or limited partners. These low-income housing tax credit funds are organized as LLCs or limited partnerships for the purpose of investing in a number of project partnerships, which are limited partnerships or LLCs that in turn purchase and develop low-income housing properties qualifying for tax credits. | ||
Our determination of the primary beneficiary of each tax credit fund in which RJTCF has a variable interest requires judgment and is based on an analysis of all relevant facts and circumstances, including: (1) an assessment of the characteristics of RJTCF’s variable interest and other involvements it has with the tax credit fund, including involvement of related parties and any de facto agents, as well as the involvement of other variable interest holders, namely, limited partners or investor members, and (2) the tax credit funds’ purpose and design, including the risks that the tax credit fund was designed to create and pass through to its variable interest holders. In the design of tax credit fund VIEs, the overriding premise is that the investor members invest solely for tax attributes associated with the portfolio of low-income housing properties held by the fund, while RJTCF, as the managing member or general partner of the fund, is responsible for overseeing the fund’s operations. | ||
Non-guaranteed low-income housing tax credit funds | ||
As the managing member or general partner of the fund, except for one guaranteed fund discussed below, RJTCF does not provide guarantees related to the delivery or funding of tax credits or other tax attributes to the investor members or limited partners of tax credit funds. The investor member(s) or limited partner(s) of the VIEs bear the risk of loss on their investment. Additionally, under the tax credit funds’ designed structure, the investor member(s) or limited partner(s) receive nearly all of the tax credits and tax-deductible loss benefits designed to be delivered by the fund entity, as well as a majority of any proceeds upon a sale of a project partnership held by a tax credit fund (fund level residuals). RJTCF earns fees from the fund for its services in organizing the fund, identifying and acquiring the project partnership investments, ongoing asset management fees, and a share of any residuals arising from sale of project partnerships upon the termination of the fund. | ||
The determination of whether RJTCF is the primary beneficiary of any of the non-guaranteed LIHTC Funds in which it holds a variable interest is primarily dependent upon: (1) the analysis of whether the other variable interest holders in the tax credit fund hold significant participating rights over the activities that most significantly impact the tax credit funds’ economic performance, and/or (2) whether RJTCF has an obligation to absorb losses of, or the right to receive benefits from, the tax credit fund VIE which could potentially be significant to the fund. | ||
RJTCF sponsors two general types of non-guaranteed tax credit funds: either non-guaranteed single investor funds, or non-guaranteed multi-investor funds. In single investor funds, RJTCF has concluded that the one single investor member or limited partner in such funds has significant participating rights over the activities that most significantly impact the economics of the fund and therefore RJTCF, as managing member or general partner of such funds, does not have the power over such activities. Accordingly, RJTCF is not deemed to be the primary beneficiary of such single investor funds and these funds are not consolidated. | ||
In multi-investor funds, RJTCF has concluded that since the participating rights over the activities that most significantly impact the economics of the fund are not held by one single investor, RJTCF is deemed to have the power over such activities. RJTCF then assesses whether its projected benefits to be received from the multi-investor funds, primarily from ongoing asset management fees or its share of any residuals upon the termination of the fund, are potentially significant to the fund. RJTCF is deemed to be the primary beneficiary, and therefore consolidates, any multi-investor fund for which it concludes that such benefits are potentially significant to the fund. | ||
Among the LIHTC Fund entities evaluated, RJTCF determined that some of the LIHTC Funds it sponsors are not VIEs. These funds are either: (1) funds which RJTCF holds a significant interest (one of which typically holds interests in certain tax credit limited partnerships for less than 90 days, or until beneficial interest in the limited partnership or fund is sold to third parties), or (2) are single investor LIHTC Funds in which RJTCF holds an interest, but the LIHTC Fund does not meet the VIE determination criteria. | ||
RJ Bank is an investor member in a LIHTC fund in which a subsidiary of RJTCF is the managing member. Although this fund was determined not to be a VIE, RJ Bank is consolidating this fund through the application of other applicable accounting guidance. | ||
See Note 20 for discussion of our commitments related to RJTCF. | ||
Guaranteed LIHTC fund | ||
In conjunction with one of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has provided the investor members with a guaranteed return on their investment in the fund (the “Guaranteed LIHTC Fund”). As a result of this guarantee obligation, RJTCF has determined that it is the primary beneficiary of, and accordingly consolidates, this guaranteed multi-investor fund. See Note 20 for further discussion of the guarantee obligation. | ||
Other real estate limited partnerships and LLCs | ||
We have a variable interest in several limited partnerships involved in various real estate activities in which one of our subsidiaries is either the general partner or a limited partner. In addition, RJ Bank may have a variable interest in LLCs involved in foreclosure or obtaining deeds in lieu of foreclosure, as well as the disposal of the collateral associated with impaired syndicated loans. Given that we do not have the power to direct the activities that most significantly impact the economic performance of these partnerships or LLCs, we have determined that we are not the primary beneficiary of these VIEs. Accordingly, we do not consolidate these partnerships or LLCs. The carrying value of our investment in these partnerships or LLCs represents our risk of loss. | ||
New market tax credit funds | ||
An entity which was at one time an affiliate of Morgan Keegan is the managing member of a number of NMTC Funds. NMTC Funds are organized as LLC’s for the purpose of investing in eligible projects in qualified low-income areas or that serve qualified targeted populations. In return for making a qualified equity investment into the NMTC Fund, the Fund’s investor member receives tax credits eligible to apply against their federal tax liability. These new market tax credits are taken by the investor member over a seven year period. | ||
Each of these NMTC Funds have one investor member. We have concluded that in each of the NMTC Funds, the investor member of such funds has significant participating rights over the activities that most significantly impact the economics of the NMTC Fund and, therefore, our affiliate as the managing member of the NMTC Fund does not have the power over such activities. Accordingly, we are not deemed to be the primary beneficiary of these NMTC Funds and, therefore, they are not consolidated. | ||
Managed Funds | ||
We have two subsidiaries (a subsidiary of Howe Barnes and a subsidiary of ClariVest), that serve as the general partner in funds which we determined to be VIEs that we are not required to consolidate. We are not required to consolidate these funds since they each satisfy the conditions for deferral of the determination of who is the primary beneficiary and therefore, who has the obligation to consolidate. These funds meet the deferral criteria as: 1) these funds’ primary business activity involves investment in the securities of other entities not under common management for current income, appreciation or both; 2) ownership in the funds is represented by units of investments to which proportionate shares of net assets can be attributed; 3) the assets of the funds are pooled to avail owners of professional management; 4) the funds are the primary reporting entities; and 5) the funds do not have an obligation (explicit or implicit) to fund losses of the entities that could be potentially significant. |
ACQUISITIONS_Notes
ACQUISITIONS (Notes) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisitions [Text Block] | ' | ||||||||
ACQUISITIONS | |||||||||
Acquisition during fiscal year 2013 | |||||||||
On December 24, 2012, (the “ClariVest Acquisition Date”) we completed our acquisition of a 45% interest in ClariVest. On the ClariVest Acquisition Date, we paid approximately $8.8 million in cash to the sellers for our interest. On the first anniversary of the ClariVest Acquisition Date, a computation based upon the actual earnings of ClariVest during the one year period will be performed and additional consideration may be owed to the sellers within 45 days thereof. | |||||||||
As of the ClariVest Acquisition Date, ClariVest managed more than $3.1 billion in client assets and marketed its investment advisory services to corporate and public pension plans, foundations, endowments and Taft-Hartley clients worldwide. As a result of certain protective rights we have under the operating agreement with ClariVest, we are consolidating ClariVest in our financial statements as of the ClariVest Acquisition Date. In addition, a put and call agreement was entered into on the ClariVest Acquisition Date that provides Eagle with various paths to majority ownership in ClariVest, the timing of which would depend upon the financial results of ClariVest’s business and the tenure of existing ClariVest management. The results of operations of ClariVest have been included in our results prospectively since December 24, 2012. For the purposes of certain acquisition related financial reporting requirements, the ClariVest acquisition is not considered to be material to our overall financial condition. | |||||||||
See Note 13 for information regarding the identifiable intangible assets we recorded as a result of the ClariVest acquisition. | |||||||||
Prior year acquisition of Morgan Keegan | |||||||||
As of the Closing Date, we applied the acquisition method of accounting to our acquisition of Morgan Keegan. In February 2013, we successfully completed the transfer of client accounts from MK & Co. to RJ&A and as a result, are now operating all of the retained historical MK & Co. operations under one (the RJ&A) platform. | |||||||||
Net assets acquired and consideration paid | |||||||||
Under the terms of the Stock Purchase Agreement (the “SPA”), on the Closing Date RJF paid Regions approximately $1.2 billion in cash in exchange for the Morgan Keegan shares. This purchase price represented a $230 million premium over a preliminary estimate of tangible book value at closing of $970 million. Subsequent to the Closing Date, the parties to the SPA determined the final closing date tangible book value and Regions paid us approximately $23 million in settlement of the final purchase price. The total cash flow impact during fiscal year 2012 of a use of cash of $1.1 billion results from the $1.2 billion cash payment on the Closing Date offset by Morgan Keegan’s Closing Date cash balance of $114 million and the $23 million purchase price adjustment paid to RJF by Regions resulting from the determination of the Closing Date tangible book value of Morgan Keegan. | |||||||||
Goodwill | |||||||||
The remaining consideration, after adjusting for the identified intangible assets and the net assets and liabilities recorded at fair value, is $230 million, which represents synergies resulting from combining the businesses, and is allocated to goodwill. | |||||||||
We elected to write-up to fair value, the tax basis of the acquired assets and liabilities assumed. As a result of this tax election, $65 million of the net deferred tax asset balance of Morgan Keegan as of the Closing Date is included in our allocation to goodwill. The goodwill arising from this transaction is attributable to our private client group and our capital markets segments. | |||||||||
See Note 13 for more information regarding the goodwill and identifiable intangible assets related to this acquisition. | |||||||||
Other items of significance | |||||||||
During April, 2012, and concurrent with the closing of the transaction, RJF made approximately $136 million of loans to Morgan Keegan financial advisors, issued approximately 1.5 million restricted stock units to certain key Morgan Keegan revenue producers (see Note 23 for additional information on our employee benefit plans) and RJF executed employment agreements with certain key members of the Morgan Keegan management team as part of an employee retention program. | |||||||||
In addition to customary indemnity for breaches of representations and warranties and covenants, the SPA also provides that Regions will indemnify RJF for losses incurred in connection with legal proceedings pending as of the closing date or commenced after the closing date and related to pre-closing matters. With respect to the indemnification pertaining to most breaches of representations and warranties and covenants, there is no indemnification for the first $9 million of aggregate losses, and thereafter indemnification is subject to a maximum amount equal to 15% of the purchase price. With respect to representations regarding certain fundamental matters and with respect to legal proceedings pending as of the Closing Date, such matters are not subject to any annual indemnification deductible or cap. Indemnification for legal proceedings commenced after the closing is subject to an aggregate annual $2 million indemnification deductible for three years, after which RJF is entitled to receive the full amount of all such losses incurred in excess of $2 million. | |||||||||
On the Closing Date, certain subsidiaries of RJF (the “Borrowers”) entered into a credit agreement (the “Regions Credit Agreement”) with Regions Bank, an Alabama banking corporation (the “Lender”). On November 14, 2012, the outstanding balance on the Regions Credit Agreement was repaid, and a new credit agreement was executed with the Lender. See Notes 15 and 17 for information regarding these borrowings. | |||||||||
Acquisition related expenses | |||||||||
We incurred the following acquisition related expenses: | |||||||||
Year ended September 30, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Information systems integration and conversion costs (1) | $ | 33,021 | $ | 14,542 | |||||
Occupancy and equipment (2) | 15,999 | 4,803 | |||||||
Severance (3) | 12,734 | 18,729 | |||||||
Temporary services | 4,106 | 1,128 | |||||||
Financial advisory fees | 1,176 | 7,040 | |||||||
Legal | 476 | 2,267 | |||||||
Bridge financing agreement fees | — | 5,684 | |||||||
Other integration costs | 5,942 | 5,091 | |||||||
Total acquisition related expenses | $ | 73,454 | $ | 59,284 | |||||
-1 | Includes equipment costs related to the disposition of information systems equipment, and temporary services incurred specifically related to the information systems conversion. | ||||||||
-2 | Includes lease costs associated with the abandonment of certain facilities resulting from the Morgan Keegan acquisition. | ||||||||
-3 | Represents all costs associated with eliminating positions as a result of the Morgan Keegan acquisition, partially offset by the favorable impact arising from the forfeiture of any unvested accrued benefits. | ||||||||
We did not incur acquisition related expenses during the year ended September 30, 2011. |
CASH_AND_CASH_EQUIVALENTS_ASSE
CASH AND CASH EQUIVALENTS, ASSETS SEGREGATED PURSUANT TO REGULATIONS AND DEPOSITS WITH CLEARING ORGANIZATIONS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||
CASH AND CASH EQUIVALENTS, ASSETS SEGREGATED PURSUANT TO REGULATIONS AND DEPOSITS WITH CLEARING ORGANIZATIONS | ' | |||||||
CASH AND CASH EQUIVALENTS, ASSETS SEGREGATED PURSUANT TO REGULATIONS, AND DEPOSITS WITH CLEARING ORGANIZATIONS | ||||||||
Our cash and cash equivalents, assets segregated pursuant to regulations and other segregated assets, and deposits with clearing organization balances are as follows: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash and cash equivalents: | ||||||||
Cash in banks | $ | 2,593,890 | $ | 1,973,897 | ||||
Money market fund investments | 2,726 | 6,123 | ||||||
Total cash and cash equivalents (1) | 2,596,616 | 1,980,020 | ||||||
Cash segregated pursuant to federal regulations and other segregated assets (2) | 4,064,827 | 2,784,199 | ||||||
Deposits with clearing organizations (3) | 126,405 | 163,848 | ||||||
$ | 6,787,848 | $ | 4,928,067 | |||||
-1 | The total amounts presented include cash and cash equivalents of $1.02 billion and $539 million as of September 30, 2013 and 2012, respectively, which are either held directly by RJF or are otherwise invested by one of our subsidiaries on behalf of RJF, and are available without restrictions. | |||||||
-2 | Consists of cash maintained in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934. RJ&A (and MK & Co. as of September 30, 2012) as broker-dealers carrying client accounts as of each respective date, are subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of their clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. | |||||||
-3 | Consists of deposits of cash and cash equivalents or other short-term securities held by other clearing organizations or exchanges. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | ' | ||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | |||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring and nonrecurring basis are presented below: | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | Quoted prices | Significant | Significant | Netting | Balance as of | ||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | adjustments (2) | September 30, | |||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | 2013 | ||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) (1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Assets at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 10 | $ | 202,816 | $ | — | $ | — | $ | 202,826 | |||||||||||||||||||||||||||||||||||||
Corporate obligations | 833 | 59,573 | — | — | 60,406 | ||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations | 6,408 | 106,988 | — | — | 113,396 | ||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | 155 | 92,994 | — | — | 93,149 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency CMOs and ABS | — | 16,957 | 14 | — | 16,971 | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 7,406 | 479,328 | 14 | — | 486,748 | ||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 89,633 | — | (61,524 | ) | 28,109 | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 48,749 | 4,231 | 35 | — | 53,015 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | 1,413 | 6,464 | 3,956 | — | 11,833 | ||||||||||||||||||||||||||||||||||||||||||
Total trading instruments | 57,568 | 579,656 | 4,005 | (61,524 | ) | 579,705 | |||||||||||||||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | — | 326,029 | — | — | 326,029 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency CMOs | — | 128,943 | 78 | — | 129,021 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | 2,076 | — | — | — | 2,076 | ||||||||||||||||||||||||||||||||||||||||||
ARS: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipals | — | — | 130,934 | (3) | — | 130,934 | |||||||||||||||||||||||||||||||||||||||||
Preferred securities | — | — | 110,784 | — | 110,784 | ||||||||||||||||||||||||||||||||||||||||||
Total available for sale securities | 2,076 | 454,972 | 241,796 | — | 698,844 | ||||||||||||||||||||||||||||||||||||||||||
Private equity investments | — | — | 216,391 | (4) | — | 216,391 | |||||||||||||||||||||||||||||||||||||||||
Other investments (5) | 241,627 | 2,278 | 4,607 | — | 248,512 | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments associated with offsetting matched book positions | — | 250,341 | — | — | 250,341 | ||||||||||||||||||||||||||||||||||||||||||
Other receivables | — | — | 2,778 | (6) | — | 2,778 | |||||||||||||||||||||||||||||||||||||||||
Other assets | — | — | 15 | — | 15 | ||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 301,271 | $ | 1,287,247 | $ | 469,592 | $ | (61,524 | ) | $ | 1,996,586 | ||||||||||||||||||||||||||||||||||||
Assets at fair value on a nonrecurring basis: (7) | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net: | |||||||||||||||||||||||||||||||||||||||||||||||
Impaired loans | $ | — | $ | 33,187 | $ | 59,868 | $ | — | $ | 93,055 | |||||||||||||||||||||||||||||||||||||
Loans held for sale (8) | — | 28,119 | — | — | 28,119 | ||||||||||||||||||||||||||||||||||||||||||
Total bank loans, net | — | 61,306 | 59,868 | — | 121,174 | ||||||||||||||||||||||||||||||||||||||||||
OREO (9) | — | 209 | — | — | 209 | ||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 61,515 | $ | 59,868 | $ | — | $ | 121,383 | |||||||||||||||||||||||||||||||||||||
(continued on next page) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | Quoted prices | Significant | Significant | Netting | Balance as of | ||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | adjustments (2) | September 30, | |||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | 2013 | ||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) (1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
(continued from previous page) | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments sold but not yet purchased: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 165 | $ | 1,612 | $ | — | $ | — | $ | 1,777 | |||||||||||||||||||||||||||||||||||||
Corporate obligations | 30 | 9,081 | — | — | 9,111 | ||||||||||||||||||||||||||||||||||||||||||
Government obligations | 169,816 | — | — | — | 169,816 | ||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | 3,068 | — | — | — | 3,068 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency MBS and CMOs | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 173,079 | 10,693 | — | — | 183,772 | ||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 74,920 | — | (69,279 | ) | 5,641 | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 31,151 | 92 | — | — | 31,243 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total trading instruments sold but not yet purchased | 204,230 | 85,705 | — | (69,279 | ) | 220,656 | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments associated with offsetting matched book positions | — | 250,341 | — | — | 250,341 | ||||||||||||||||||||||||||||||||||||||||||
Trade and other payables: | |||||||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 714 | — | — | 714 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | — | — | 60 | — | 60 | ||||||||||||||||||||||||||||||||||||||||||
Total trade and other payables | — | 714 | 60 | — | 774 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $ | 204,230 | $ | 336,760 | $ | 60 | $ | (69,279 | ) | $ | 471,771 | ||||||||||||||||||||||||||||||||||||
-1 | We had $860 thousand in transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2013. These transfers were a result of a decrease in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had $401 thousand in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2013. These transfers were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | Where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. | ||||||||||||||||||||||||||||||||||||||||||||||
-3 | Includes $54 million of Jefferson County, Alabama Limited Obligation School Warrants ARS and $25 million of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS. | ||||||||||||||||||||||||||||||||||||||||||||||
-4 | Of the total private equity investments, the weighted-average portion we own is approximately 41%. Effectively, the economics associated with the portions of these investments we do not own become a component of noncontrolling interests on our Consolidated Statements of Financial Condition, and amounted to approximately $63 million of the total as of September 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||
-5 | Other investments include $176 million of financial instruments that are related to obligations to perform under certain of MK & Co.’s historic deferred compensation plans (see Note 2 and Note 23 for further information regarding these plans). | ||||||||||||||||||||||||||||||||||||||||||||||
-6 | Primarily comprised of forward commitments to purchase GNMA (as hereinafter defined) MBS arising from our fixed income public finance operations (see Note 20 for additional information regarding these commitments). | ||||||||||||||||||||||||||||||||||||||||||||||
-7 | Goodwill fair value measurements are classified within Level 3 of the fair value hierarchy, which are generally determined using unobservable inputs. See Note 13 for additional information regarding the annual impairment analysis and our methods of estimating the fair value of reporting units that have an allocation of goodwill, including the key assumptions. | ||||||||||||||||||||||||||||||||||||||||||||||
-8 | Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost. | ||||||||||||||||||||||||||||||||||||||||||||||
-9 | Represents the fair value of foreclosed properties which were measured at a fair value subsequent to their initial classification as OREO. The recorded value in the Consolidated Statements of Financial Condition is net of the estimated selling costs. | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | Quoted prices | Significant | Significant | Netting | Balance as of | ||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | adjustments (2) | September 30, | |||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) (1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Assets at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 7 | $ | 346,030 | $ | 553 | $ | — | $ | 346,590 | |||||||||||||||||||||||||||||||||||||
Corporate obligations | 15,916 | 70,815 | — | — | 86,731 | ||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations | 10,907 | 156,492 | — | — | 167,399 | ||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | 1,085 | 104,084 | — | — | 105,169 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency CMOs and ABS | — | 1,986 | 29 | — | 2,015 | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 27,915 | 679,407 | 582 | — | 707,904 | ||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 144,259 | — | (93,259 | ) | 51,000 | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 23,626 | 2,891 | 6 | — | 26,523 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | 864 | 12,131 | 5,850 | — | 18,845 | ||||||||||||||||||||||||||||||||||||||||||
Total trading instruments | 52,405 | 838,688 | 6,438 | (93,259 | ) | 804,272 | |||||||||||||||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | — | 352,303 | — | — | 352,303 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency CMOs | — | 147,558 | 249 | — | 147,807 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | 12 | — | — | — | 12 | ||||||||||||||||||||||||||||||||||||||||||
ARS: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipals | — | — | 123,559 | (3) | — | 123,559 | |||||||||||||||||||||||||||||||||||||||||
Preferred securities | — | — | 110,193 | — | 110,193 | ||||||||||||||||||||||||||||||||||||||||||
Total available for sale securities | 12 | 499,861 | 234,001 | — | 733,874 | ||||||||||||||||||||||||||||||||||||||||||
Private equity investments | — | — | 336,927 | (4) | — | 336,927 | |||||||||||||||||||||||||||||||||||||||||
Other investments (5) | 303,817 | 2,897 | 4,092 | — | 310,806 | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments associated with offsetting matched book positions | — | 458,265 | — | — | 458,265 | ||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 356,234 | $ | 1,799,711 | $ | 581,458 | $ | (93,259 | ) | $ | 2,644,144 | ||||||||||||||||||||||||||||||||||||
Assets at fair value on a nonrecurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net | |||||||||||||||||||||||||||||||||||||||||||||||
Impaired loans (6) | $ | — | $ | 47,409 | $ | 46,383 | $ | — | $ | 93,792 | |||||||||||||||||||||||||||||||||||||
Loans held for sale (7) | — | 81,093 | — | — | 81,093 | ||||||||||||||||||||||||||||||||||||||||||
Total bank loans, net | — | 128,502 | 46,383 | — | 174,885 | ||||||||||||||||||||||||||||||||||||||||||
OREO (8) | — | 6,216 | — | — | 6,216 | ||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 134,718 | $ | 46,383 | $ | — | $ | 181,101 | |||||||||||||||||||||||||||||||||||||
(continued on next page) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | Quoted prices | Significant | Significant | Netting | Balance as of | ||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | adjustments (2) | September 30, | |||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) (1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
(continued from previous page) | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments sold but not yet purchased: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | — | $ | 212 | $ | — | $ | — | $ | 212 | |||||||||||||||||||||||||||||||||||||
Corporate obligations | 33 | 12,355 | — | — | 12,388 | ||||||||||||||||||||||||||||||||||||||||||
Government obligations | 199,501 | 587 | — | — | 200,088 | ||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | 556 | — | — | — | 556 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency MBS and CMOs | — | 121 | — | — | 121 | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 200,090 | 13,275 | — | — | 213,365 | ||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 128,081 | — | (124,979 | ) | 3,102 | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 9,636 | 64 | — | — | 9,700 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | — | 6,269 | — | — | 6,269 | ||||||||||||||||||||||||||||||||||||||||||
Total trading instruments sold but not yet purchased | 209,726 | 147,689 | — | (124,979 | ) | 232,436 | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments associated with offsetting matched book positions | — | 458,265 | — | — | 458,265 | ||||||||||||||||||||||||||||||||||||||||||
Trade and other payables: | |||||||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 1,370 | — | — | 1,370 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | — | — | 98 | — | 98 | ||||||||||||||||||||||||||||||||||||||||||
Total trade and other payables | — | 1,370 | 98 | — | 1,468 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $ | 209,726 | $ | 607,324 | $ | 98 | $ | (124,979 | ) | $ | 692,169 | ||||||||||||||||||||||||||||||||||||
-1 | We had no transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2012. We had $541 thousand in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2012. These transfers were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | Where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. | ||||||||||||||||||||||||||||||||||||||||||||||
-3 | Includes $48 million of Jefferson County, Alabama Limited Obligation School Warrants ARS and $22 million of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS. | ||||||||||||||||||||||||||||||||||||||||||||||
-4 | Includes $224 million in private equity investments of which the weighted-average portion we own is approximately 28%. Effectively, the economics associated with the portions of these investments we do not own become a component of noncontrolling interests on our Consolidated Statements of Financial Condition, and amounted to approximately $161 million of that total as of September 30, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||
-5 | Other investments include $185 million of financial instruments that are related to obligations to perform under certain of MK & Co.’s historic deferred compensation plans (see Note 2 and Note 23 for further information regarding these plans). | ||||||||||||||||||||||||||||||||||||||||||||||
-6 | During the year ended September 30, 2012, we initially transferred $55 million of impaired loans from Level 3 to Level 2. The transfer was a result of the increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our analysis indicates that comparative sales data is a reasonable estimate of fair value, therefore, more consideration was given to this observable input. | ||||||||||||||||||||||||||||||||||||||||||||||
-7 | Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost. | ||||||||||||||||||||||||||||||||||||||||||||||
-8 | Represents the fair value of foreclosed properties which were measured at a fair value subsequent to their initial classification as OREO. The recorded value in the Consolidated Statements of Financial Condition is net of the estimated selling costs. | ||||||||||||||||||||||||||||||||||||||||||||||
The adjustment to fair value of the nonrecurring fair value measures for the year ended September 30, 2013 resulted in $8.7 million in additional provision for loan losses and $529 thousand in other losses. The adjustment to fair value of the nonrecurring fair value measures for the year ended September 30, 2012 resulted in $20.7 million in additional provision for loan losses and $2 million in other losses. | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in Level 3 recurring fair value measurements | |||||||||||||||||||||||||||||||||||||||||||||||
The realized and unrealized gains and losses for assets and liabilities within the Level 3 category presented in the tables below may include changes in fair value that were attributable to both observable and unobservable inputs. | |||||||||||||||||||||||||||||||||||||||||||||||
Additional information about Level 3 assets and liabilities measured at fair value on a recurring basis is presented below: | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | Financial | ||||||||||||||||||||||||||||||||||||||||||||||
liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments | Available for sale securities | Private equity, other investments, other receivables and other assets | Payables- | ||||||||||||||||||||||||||||||||||||||||||||
trade and | |||||||||||||||||||||||||||||||||||||||||||||||
other | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal & | Non- | Equity | Other | Non- | ARS – | ARS - | Private | Other | Other receivables | Other Assets | Other | ||||||||||||||||||||||||||||||||||||
provincial | agency | securities | securities | agency | municipals | preferred | equity | investments | liabilities | ||||||||||||||||||||||||||||||||||||||
obligations | CMOs & | CMOs | securities | investments | |||||||||||||||||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 553 | $ | 29 | $ | 6 | $ | 5,850 | $ | 249 | $ | 123,559 | $ | 110,193 | $ | 336,927 | $ | 4,092 | $ | — | $ | — | $ | (98 | ) | ||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) for the year: | |||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | — | (4 | ) | 1 | (140 | ) | (396 | ) | 439 | 1,164 | 70,688 | (1) | 1,390 | 2,778 | — | 38 | |||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | — | — | 281 | 13,212 | 7,504 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Purchases and contributions | — | — | 63 | 9,885 | — | — | 25 | 20,416 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Sales | (553 | ) | — | (37 | ) | (9,234 | ) | — | (4,971 | ) | (90 | ) | (165,878 | ) | (2) | (691 | ) | — | — | — | |||||||||||||||||||||||||||
Redemptions by issuer | — | — | — | — | — | (1,305 | ) | (8,012 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Distributions | — | (11 | ) | — | (2,390 | ) | (56 | ) | — | — | (45,762 | ) | (315 | ) | — | — | — | ||||||||||||||||||||||||||||||
Transfers: (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Into Level 3 | — | — | 2 | — | — | — | — | — | 131 | — | 15 | — | |||||||||||||||||||||||||||||||||||
Out of Level 3 | — | — | — | (15 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fair value | $ | — | $ | 14 | $ | 35 | $ | 3,956 | $ | 78 | $ | 130,934 | $ | 110,784 | $ | 216,391 | $ | 4,607 | $ | 2,778 | $ | 15 | $ | (60 | ) | ||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | $ | — | $ | 38 | $ | (1 | ) | $ | (140 | ) | $ | (396 | ) | $ | 13,212 | $ | 7,504 | $ | 5,354 | $ | 1,511 | $ | 2,778 | $ | — | $ | — | ||||||||||||||||||||
-1 | Results from valuation adjustments of certain private equity investments and the April 29, 2013 sale of our indirect investment in Albion Medical Holdings, Inc. (“Albion”). Since we only own a portion of these investments, our share of the net valuation adjustments and Albion sale resulted in a gain of $28.4 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net gain is approximately $42.3 million. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | Results primarily from the April 29, 2013 sale of our indirect investment in Albion. The amount is presented gross, and therefore includes amounts pertaining to interests held by others. | ||||||||||||||||||||||||||||||||||||||||||||||
-3 | Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | Financial | ||||||||||||||||||||||||||||||||||||||||||||||
liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments | Available for sale securities | Private equity and other investments | Payables-trade | ||||||||||||||||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal & | Non- | Equity | Other securities | Non- | ARS – | ARS - | Private | Other | Other | ||||||||||||||||||||||||||||||||||||||
provincial | agency | securities | agency | municipals | preferred | equity | investments | liabilities | |||||||||||||||||||||||||||||||||||||||
obligations | CMOs & | CMOs | securities | investments | |||||||||||||||||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 375 | $ | 50 | $ | 15 | $ | — | $ | 851 | $ | 79,524 | $ | 116,524 | $ | 168,785 | $ | 2,087 | $ | (40 | ) | ||||||||||||||||||||||||||
September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) for the year: | |||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | 89 | (3 | ) | 11 | (1,034 | ) | (691 | ) | (1,487 | ) | (75 | ) | 36,098 | (1) | 296 | (58 | ) | ||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | — | — | 130 | (7,651 | ) | (1,528 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
Purchases and contributions | 553 | — | 18 | 16,268 | — | 56,344 | 66,915 | 162,795 | (4) | 2,276 | — | ||||||||||||||||||||||||||||||||||||
Sales | (320 | ) | — | (16 | ) | (14,251 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Redemptions by issuer | — | — | — | — | — | (3,214 | ) | (71,600 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
Distributions | — | (18 | ) | — | (1,710 | ) | (41 | ) | — | — | (30,751 | ) | (567 | ) | — | ||||||||||||||||||||||||||||||||
Transfers: | |||||||||||||||||||||||||||||||||||||||||||||||
Into Level 3 | — | — | 156 | 6,577 | (2) | — | 43 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Out of Level 3 (3) | (144 | ) | — | (178 | ) | — | — | — | (43 | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Fair value | $ | 553 | $ | 29 | $ | 6 | $ | 5,850 | $ | 249 | $ | 123,559 | $ | 110,193 | $ | 336,927 | $ | 4,092 | $ | (98 | ) | ||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | $ | — | $ | 9 | $ | (5 | ) | $ | (1,034 | ) | $ | (691 | ) | $ | (9,060 | ) | $ | (1,528 | ) | $ | 36,098 | (1) | $ | 172 | $ | — | |||||||||||||||||||||
-1 | Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of $15.2 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $20.9 million. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | During the year ended September 30, 2012, we transferred certain non-agency CMOs and ABS securities which were previously included in Level 2, into Level 3, due to a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. | ||||||||||||||||||||||||||||||||||||||||||||||
-3 | The transfers out of Level 3 were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
-4 | Includes private equity investments of approximately $46 million arising from the Morgan Keegan acquisition and $97 million of other investments arising from the consolidation of certain of Morgan Keegan’s private equity funds (see Note 3 for further information regarding the Morgan Keegan acquisition and the consolidation of some of the private equity funds they sponsor). | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | Financial | ||||||||||||||||||||||||||||||||||||||||||||||
liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments | Available for sale securities | Private equity and other investments | Payables-trade | ||||||||||||||||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal & | Non- | Equity | Non- | ARS – | ARS - | Private | Other | Other | |||||||||||||||||||||||||||||||||||||||
provincial | agency | securities | agency | municipals | preferred | equity | investments | liabilities | |||||||||||||||||||||||||||||||||||||||
obligations | CMOs & | CMOs | securities | investments | |||||||||||||||||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 6,275 | $ | 3,930 | $ | 3,025 | $ | 1,011 | $ | — | $ | — | $ | 161,230 | $ | 45 | $ | (46 | ) | ||||||||||||||||||||||||||||
September 30, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) for the year: | |||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | (397 | ) | 1,318 | (176 | ) | 121 | — | — | 10,683 | (1) | (160 | ) | 6 | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | — | 155 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Purchases and contributions | 1,050 | 12 | 688 | — | 73,213 | 131,255 | 14,027 | 1,932 | — | ||||||||||||||||||||||||||||||||||||||
Sales | (305 | ) | (5,210 | ) | (1,225 | ) | (436 | ) | — | — | — | (191 | ) | — | |||||||||||||||||||||||||||||||||
Redemptions by issuer | — | — | (1,125 | ) | — | — | (15,925 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | (16,694 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Transfers: | |||||||||||||||||||||||||||||||||||||||||||||||
Into Level 3 (2) | — | — | — | — | 6,311 | 1,194 | — | 461 | — | ||||||||||||||||||||||||||||||||||||||
Out of Level 3 (2) | (6,248 | ) | — | (1,172 | ) | — | — | — | (461 | ) | — | — | |||||||||||||||||||||||||||||||||||
Fair value | $ | 375 | $ | 50 | $ | 15 | $ | 851 | $ | 79,524 | $ | 116,524 | $ | 168,785 | $ | 2,087 | $ | (40 | ) | ||||||||||||||||||||||||||||
September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | $ | 203 | $ | (99 | ) | $ | (23 | ) | $ | (81 | ) | $ | — | $ | — | $ | (8 | ) | $ | (143 | ) | $ | — | ||||||||||||||||||||||||
-1 | Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of $6 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $4.7 million. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | During the fiscal year 2011, ARS positions we held in trading instruments which were repurchased from clients in individual settlements prior to the June, 2011 ARS settlement were transferred into available for sale securities. In addition, certain investments held by our Canadian subsidiary were reclassified from private equity investments to other investments. In all periods presented, these positions were considered Level 3 assets in the fair value hierarchy. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, 8.6% of our assets and 2.5% of our liabilities are instruments measured at fair value on a recurring basis. Instruments measured at fair value on a recurring basis categorized as Level 3 as of September 30, 2013 represent 24% of our assets measured at fair value. In comparison as of September 30, 2012, 12.5% and 4% of our assets and liabilities, respectively, represented instruments measured at fair value on a recurring basis. Instruments measured at fair value on a recurring basis categorized as Level 3 as of September 30, 2012 represented 22% of our assets measured at fair value. The balances of our level 3 assets have decreased compared to September 30, 2012, primarily as a result of the sale of Albion in our private equity portfolio (partially offset by valuation increases in that portfolio) and the sale or redemption of a portion of our ARS portfolio. Level 3 instruments as a percentage of total financial instruments increased by 2% as compared to September 30, 2012. Total financial instruments, primarily trading instruments, derivative instruments associated with offsetting matched book positions, and other investments which are not level 3 financial instruments decreased compared to September 30, 2012, impacting the calculation of Level 3 assets as a percentage of total financial instruments. | |||||||||||||||||||||||||||||||||||||||||||||||
Gains and losses included in earnings are presented in net trading profits and other revenues in our Consolidated Statements of Income and Comprehensive Income as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
For the year ended September 30, 2013 | Net trading | Other | |||||||||||||||||||||||||||||||||||||||||||||
profits | revenues | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Total (losses) gains included in revenues | $ | (143 | ) | $ | 76,101 | ||||||||||||||||||||||||||||||||||||||||||
Change in unrealized (losses) gains for assets held at the end of the reporting period | $ | (103 | ) | $ | 29,963 | ||||||||||||||||||||||||||||||||||||||||||
For the year ended September 30, 2012 | Net trading | Other | |||||||||||||||||||||||||||||||||||||||||||||
profits | revenues | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Total (losses) gains included in revenues | $ | (937 | ) | $ | 34,083 | ||||||||||||||||||||||||||||||||||||||||||
Change in unrealized (losses) gains for assets held at the end of the reporting period | $ | (1,030 | ) | $ | 24,991 | ||||||||||||||||||||||||||||||||||||||||||
For the year ended September 30, 2011 | Net trading | Other | |||||||||||||||||||||||||||||||||||||||||||||
profits | revenues | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Total gains included in revenues | $ | 745 | $ | 10,650 | |||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for assets held at the end of the reporting period | $ | 81 | $ | (232 | ) | ||||||||||||||||||||||||||||||||||||||||||
Quantitative information about level 3 fair value measurements | |||||||||||||||||||||||||||||||||||||||||||||||
The significant assumptions used in the valuation of level 3 financial instruments are presented in the table on the following page (such table includes the significant majority of the financial instruments we hold that are classified as level 3 measures). | |||||||||||||||||||||||||||||||||||||||||||||||
Level 3 financial instrument | Fair value at | Valuation technique(s) | Unobservable input | Range (weighted-average) | |||||||||||||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Recurring measurements: | |||||||||||||||||||||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||
ARS: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipals | $ | 54,365 | Probability weighted | ||||||||||||||||||||||||||||||||||||||||||||
internal scenario model: | |||||||||||||||||||||||||||||||||||||||||||||||
Scenario 1 - recent trades | Observed trades (in inactive markets) of in-portfolio securities as well as observed trades (in active markets) of other comparable securities | 81.9% of par - 84.0% of par (82.75% of par) | |||||||||||||||||||||||||||||||||||||||||||||
Scenario 2 - discounted cash flow | Average discount rate(a) | 8.02% - 9.14% (8.58%) | |||||||||||||||||||||||||||||||||||||||||||||
Average interest rates applicable to future interest income on the securities(b) | 1.88% - 7.64% (4.76%) | ||||||||||||||||||||||||||||||||||||||||||||||
Prepayment year(c) | 2016 - 2023 (2020) | ||||||||||||||||||||||||||||||||||||||||||||||
Weighting assigned to outcome of scenario 1/scenario 2 | 90%/10% | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 24,716 | Recent trades | Observed trades (in inactive markets) of in-portfolio securities as well as | 63.8% of par - 74% of par (73.78% of par) | |||||||||||||||||||||||||||||||||||||||||||
observed trades of | |||||||||||||||||||||||||||||||||||||||||||||||
other comparable securities | |||||||||||||||||||||||||||||||||||||||||||||||
(in inactive markets) | |||||||||||||||||||||||||||||||||||||||||||||||
Comparability adjustments(d) | +/- 5% of par (+/- 5% of par) | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 51,853 | Discounted cash flow | Average discount rate(a) | 3.34% - 6.33% (4.75%) | |||||||||||||||||||||||||||||||||||||||||||
Average interest rates applicable to future interest income on the securities(b) | 0.88% - 7.62% (3.32%) | ||||||||||||||||||||||||||||||||||||||||||||||
Prepayment year(c) | 2016 - 2023 (2019) | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred securities | $ | 110,784 | Discounted cash flow | Average discount rate(a) | 3.35% - 5.23% (4.42%) | ||||||||||||||||||||||||||||||||||||||||||
Average interest rates applicable to future interest income on the securities(b) | 1.43% - 2.73% (1.98%) | ||||||||||||||||||||||||||||||||||||||||||||||
Prepayment year(c) | 2013 - 2018 (2017) | ||||||||||||||||||||||||||||||||||||||||||||||
Private equity investments: | $ | 37,849 | Income or market approach: | ||||||||||||||||||||||||||||||||||||||||||||
Scenario 1 - income approach - discounted cash flow | Discount rate(a) | 14% - 15% (14%) | |||||||||||||||||||||||||||||||||||||||||||||
Terminal growth rate of cash flows | 3% - 3% (3%) | ||||||||||||||||||||||||||||||||||||||||||||||
Terminal year | 2014 - 2015 (2014) | ||||||||||||||||||||||||||||||||||||||||||||||
Scenario 2 - market approach - market multiple method | EBITDA Multiple(e) | 4.75 - 7.00 (5.39) | |||||||||||||||||||||||||||||||||||||||||||||
Projected EBITDA growth(f) | 16.3% - 16.3% (16.3%) | ||||||||||||||||||||||||||||||||||||||||||||||
Weighting assigned to outcome of scenario 1/scenario 2 | 86%/14% | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 178,542 | Transaction price, other investment-specific events, or our proportionate share of the net assets of the partnership provided by the fund manager(g) | Not meaningful(g) | Not meaningful(g) | |||||||||||||||||||||||||||||||||||||||||||
Nonrecurring measurements: | |||||||||||||||||||||||||||||||||||||||||||||||
Impaired loans: residential | $ | 34,268 | Discounted cash flow | Prepayment rate | 0 yrs. - 12 yrs. (7.8 yrs.) | ||||||||||||||||||||||||||||||||||||||||||
Impaired loans: corporate | $ | 25,600 | Appraisal, discounted cash flow, or distressed enterprise value(h) | Not meaningful(h) | Not meaningful(h) | ||||||||||||||||||||||||||||||||||||||||||
The explanations to the footnotes in the above table are on the following page. | |||||||||||||||||||||||||||||||||||||||||||||||
Footnote explanations pertaining to the table on the previous page: | |||||||||||||||||||||||||||||||||||||||||||||||
(a) | Represents discount rates used when we have determined that market participants would take these discounts into account when pricing the investments. | ||||||||||||||||||||||||||||||||||||||||||||||
(b) | Future interest rates are projected based upon a forward interest rate curve, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. | ||||||||||||||||||||||||||||||||||||||||||||||
(c) | Assumed year of at least a partial redemption of the outstanding security by the issuer. | ||||||||||||||||||||||||||||||||||||||||||||||
(d) | Management estimates that market participants apply this range of either discount or premium, as applicable, to the limited observable trade data in order to assess the value of the securities within this portfolio segment. | ||||||||||||||||||||||||||||||||||||||||||||||
(e) | Represents amounts used when we have determined that market participants would use such multiples when pricing the investments. | ||||||||||||||||||||||||||||||||||||||||||||||
(f) | Represents the projected growth in earnings before interest, taxes, depreciation and amortization (“EBITDA”) utilized in the valuation as compared to the prior periods reported EBITDA. | ||||||||||||||||||||||||||||||||||||||||||||||
(g) | Certain direct private equity investments are valued initially at the transaction price until either our annual review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, where any of which indicate that a change in the carrying values of these investments is appropriate. | ||||||||||||||||||||||||||||||||||||||||||||||
(h) | The valuation techniques used for the impaired corporate loan portfolio as of September 30, 2013 were appraisals less selling costs for the collateral dependent loans, and either discounted cash flows or distressed enterprise value for the remaining impaired loans that are not collateral dependent. | ||||||||||||||||||||||||||||||||||||||||||||||
Qualitative disclosure about unobservable inputs | |||||||||||||||||||||||||||||||||||||||||||||||
For our recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the sensitivity of the fair value measurement to changes in significant unobservable inputs and interrelationships between those unobservable inputs are described below: | |||||||||||||||||||||||||||||||||||||||||||||||
Auction rate securities: | |||||||||||||||||||||||||||||||||||||||||||||||
One of the significant unobservable inputs used in the fair value measurement of auction rate securities presented within our available for sale securities portfolio relates to judgments regarding whether the level of observable trading activity is sufficient to conclude markets are active. Where insufficient levels of trading activity are determined to exist as of the reporting date, then management’s assessment of how much weight to apply to trading prices in inactive markets versus management’s own valuation models could significantly impact the valuation conclusion. The valuation of the securities impacted by changes in management’s assessment of market activity levels could be either higher or lower, depending upon the relationship of the inactive trading prices compared to the outcome of management’s internal valuation models. | |||||||||||||||||||||||||||||||||||||||||||||||
The future interest rate and maturity assumptions impacting the valuation of the auction rate securities are directly related. As short-term interest rates rise, due to the variable nature of the penalty interest rate provisions embedded in most of these securities in the event auctions fail to set the security’s interest rate, then a penalty rate that is specified in the security increases. These penalty rates are based upon a stated interest rate spread over what is typically a short-term base interest rate index. Management estimates that at some level of increase in short-term interest rates, issuers of the securities will have the economic incentive to refinance (and thus prepay) the securities. Therefore, the short-term interest rate assumption directly impacts the input related to the timing of any projected prepayment. The faster and steeper short-term interest rates rise, the earlier prepayments will likely occur and the higher the fair value of the security. | |||||||||||||||||||||||||||||||||||||||||||||||
Private equity investments: | |||||||||||||||||||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of private equity investments relate to the financial performance of the investment entity and the market’s required return on investments from entities in industries in which we hold investments. Significant increases (or decreases) in our investment entities’ future economic performance will have a directly proportional impact on the valuation results. The value of our investment moves inversely with the market’s expectation of returns from such investments. Should the market require higher returns from industries in which we are invested, all other factors held constant, our investments will decrease in value. Should the market accept lower returns from industries in which we are invested, all other factors held constant, our investments will increase in value. | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value option | |||||||||||||||||||||||||||||||||||||||||||||||
The fair value option is an accounting election that allows the reporting entity to apply fair value accounting for certain financial assets and liabilities on an instrument by instrument basis. As of September 30, 2013 and 2012, we have elected not to choose the fair value option for any of our financial assets or liabilities not already recorded at fair value. | |||||||||||||||||||||||||||||||||||||||||||||||
Other fair value disclosures | |||||||||||||||||||||||||||||||||||||||||||||||
Many, but not all, of the financial instruments we hold are recorded at fair value in the Consolidated Statements of Financial Condition. | |||||||||||||||||||||||||||||||||||||||||||||||
The following represent financial instruments in which the ending balance at September 30, 2013 and 2012 are not carried at fair value on our Consolidated Statements of Financial Condition: | |||||||||||||||||||||||||||||||||||||||||||||||
Short-term financial instruments: The carrying value of short-term financial instruments, including cash and cash equivalents, assets segregated pursuant to federal regulations and other segregated assets, securities either purchased or sold under agreements to resell and other collateralized financings are recorded at amounts that approximate the fair value of these instruments. These financial instruments generally expose us to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market rates. | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net: These financial instruments are primarily comprised of loans originated or purchased by RJ Bank and include C&I loans, commercial and residential real estate loans, as well as consumer loans intended to be held until maturity or payoff. In addition, these financial instruments consist of loans held for sale, which are carried at the lower of cost or market value. A portion of these loans held for sale are included in the nonrecurring fair value measurements in addition to any impaired loans held for investment. | |||||||||||||||||||||||||||||||||||||||||||||||
Fair values for both variable and fixed-rate loans held for investment are estimated using discounted cash flow analyses, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. This methodology for estimating the fair value of loans does not consider other market variables and, therefore, is not based on an exit price concept. Refer to Note 2 for information regarding the fair value policies specific to loans held for sale. | |||||||||||||||||||||||||||||||||||||||||||||||
Receivables and other assets: Brokerage client receivables, receivables from broker-dealers and clearing organizations, stock borrowed receivables, other receivables, FHLB and FRB stock and certain other assets are recorded at amounts that approximate fair value. Cost was determined to be the estimated fair value of the FHLB and FRB stock. | |||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits: The fair values for demand deposits are equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate money-market and savings accounts approximate their fair values at the reporting date as these are short-term in nature. Fair values for fixed-rate certificate accounts are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of expected monthly maturities on time deposits. | |||||||||||||||||||||||||||||||||||||||||||||||
Payables: Brokerage client payables, payables due to broker-dealers and clearing organizations, stock loaned payables, and trade and other payables are recorded at amounts that approximate fair value. | |||||||||||||||||||||||||||||||||||||||||||||||
Other borrowings: The carrying amount of other borrowings are estimated to approximate their fair value due to the relative short-term nature of such borrowings, the majority of which are day-to-day. | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt: The fair value of the mortgage note payable associated with the financing of our Saint Petersburg, Florida corporate offices is based upon an estimate of the current market rates for similar loans. The fair value of our senior notes is based upon recent trades of those or other similar debt securities in the market. | |||||||||||||||||||||||||||||||||||||||||||||||
Off-balance sheet financial instruments: The fair value of unfunded commitments to extend credit is based on a methodology similar to that described above for loans and further adjusted for the probability of funding. The fair value of these unfunded lending commitments in addition to the fair value of other off-balance sheet financial instruments are not material and, therefore, are excluded from the table that follows. See Note 26 for further discussion of off-balance sheet financial instruments. | |||||||||||||||||||||||||||||||||||||||||||||||
For those financial instruments where the fair value is not reflected on the Consolidated Statements of Financial Condition, we have estimated their fair value in part based upon our assumptions, the estimated amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimated fair values. Accordingly, the net realizable values could be materially different from the estimates presented in the table below. In addition, the estimates are only indicative of the value of individual financial instruments and should not be considered an indication of the fair value of RJF as a whole. We are not required to disclose either the fair value of non-financial instruments including property, equipment and leasehold improvements, nor are we required to disclose the fair value of intangible assets including identifiable intangible assets and goodwill. | |||||||||||||||||||||||||||||||||||||||||||||||
The estimated fair values by level within the fair value hierarchy and the carrying amounts of our financial instruments that are not carried at fair value are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
Quoted prices | Significant | Significant | Total estimated fair value | Carrying amount | |||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | |||||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | |||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net(1) | $ | — | $ | 83,012 | $ | 8,614,755 | $ | 8,697,767 | $ | 8,700,027 | |||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | $ | — | $ | 8,981,996 | $ | 320,196 | $ | 9,302,192 | $ | 9,295,371 | |||||||||||||||||||||||||||||||||||||
Other borrowings | $ | — | $ | 84,076 | $ | — | $ | 84,076 | $ | 84,076 | |||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 352,520 | $ | 951,628 | $ | — | $ | 1,304,148 | $ | 1,194,508 | |||||||||||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net(1) | $ | — | $ | 80,227 | $ | 7,803,328 | $ | 7,883,555 | $ | 7,816,627 | |||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | $ | — | $ | 8,280,834 | $ | 329,966 | $ | 8,610,800 | $ | 8,599,713 | |||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 384,440 | $ | 962,610 | $ | — | $ | 1,347,050 | $ | 1,329,093 | |||||||||||||||||||||||||||||||||||||
-1 | Excludes all impaired loans and loans held for sale which have been recorded at fair value in the Consolidated Statement of Financial Condition at September 30, 2013 and 2012, respectively. |
TRADING_INSTRUMENTS_AND_TRADIN
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED [Abstract] | ' | |||||||||||||||
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED | ' | |||||||||||||||
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Trading | Instruments | Trading | Instruments | |||||||||||||
instruments | sold but not | instruments | sold but not | |||||||||||||
yet purchased | yet purchased | |||||||||||||||
(in thousands) | ||||||||||||||||
Municipal and provincial obligations | $ | 202,826 | $ | 1,777 | $ | 346,590 | $ | 212 | ||||||||
Corporate obligations | 60,406 | 9,111 | 86,731 | 12,388 | ||||||||||||
Government and agency obligations | 113,396 | 169,816 | 167,399 | 200,088 | ||||||||||||
Agency MBS and CMOs | 93,149 | 3,068 | 105,169 | 556 | ||||||||||||
Non-agency CMOs and ABS | 16,971 | — | 2,015 | 121 | ||||||||||||
Total debt securities | 486,748 | 183,772 | 707,904 | 213,365 | ||||||||||||
Derivative contracts (1) | 28,109 | 5,641 | 51,000 | 3,102 | ||||||||||||
Equity securities | 53,015 | 31,243 | 26,523 | 9,700 | ||||||||||||
Other securities | 11,833 | — | 18,845 | 6,269 | ||||||||||||
Total | $ | 579,705 | $ | 220,656 | $ | 804,272 | $ | 232,436 | ||||||||
-1 | Represents the derivative contracts held for trading purposes. These balances do not include all derivative instruments since the derivative instruments associated with offsetting matched book positions are included on their own line item on our Consolidated Statements of Financial Condition. See Note 18 for further information regarding all of our derivative transactions. | |||||||||||||||
See Note 5 for additional information regarding the fair value of trading instruments and trading instruments sold but not yet purchased. |
AVAILABLE_FOR_SALE_SECURITIES
AVAILABLE FOR SALE SECURITIES | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||||||||||
AVAILABLE FOR SALE SECURITIES | ||||||||||||||||||||||||
Available for sale securities are comprised of MBS, CMOs and other securities owned by RJ Bank, ARS and for certain prior periods various equity securities owned by our non-broker-dealer subsidiaries. | ||||||||||||||||||||||||
During the year ended September 30, 2013, certain ARS were redeemed by their issuer at par, sold at amounts approximating their par value pursuant to tender offers or sold in market transactions. Altogether, such transactions resulted in proceeds of $14 million and a gain of $2 million in the year ended September 30, 2013 which is recorded in other revenues on our Consolidated Statements of Income and Comprehensive Income. | ||||||||||||||||||||||||
During the year ended September 30, 2012, as a component of the Morgan Keegan acquisition (see Note 3 for further information), we acquired additional ARS on the Closing Date which had a fair value of $122 million. During the year ended September 30, 2012, ARS with an aggregate par value of approximately $75 million were redeemed by their issuer at par resulting in a gain of $360 thousand for the year ended September 30, 2012, which was recorded in other revenues on our Consolidated Statements of Income and Comprehensive Income. | ||||||||||||||||||||||||
During the year ended September 30, 2011, as a result of the resolution of certain ARS matters, $245 million of par value ARS were purchased from current or former clients as a result of a settlement agreement; $16 million of the repurchased ARS were redeemed at par by the issuer subsequent to their purchase and prior to September 30, 2011. The fair value of the ARS repurchased was $205 million; the $40 million excess of the par value over the fair value of the ARS repurchased was accounted for as a component of the loss on auction rate securities repurchased for the year ended September 30, 2011 on our Consolidated Statements of Income and Comprehensive Income. | ||||||||||||||||||||||||
During the year ended September 30, 2013, the other securities, which were comprised of equity securities, and which are not part of the other securities held within the RJ Bank available for sale securities portfolio, were sold. The sale resulted in $13 thousand in proceeds and an insignificant gain on sale during the year ended September 30, 2013. There were no proceeds from the sale of other available for sale securities during the year ended September 30, 2012. There were proceeds of $13.8 million from the sale of available for sale securities during the year ended September 30, 2011, which resulted in total losses of $209 thousand. | ||||||||||||||||||||||||
The amortized cost and fair values of available for sale securities are as follows: | ||||||||||||||||||||||||
Cost basis | Gross | Gross | Fair value | |||||||||||||||||||||
unrealized gains | unrealized losses | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 326,858 | $ | 707 | $ | (1,536 | ) | $ | 326,029 | |||||||||||||||
Non-agency CMOs (1) | 142,169 | 4 | (13,152 | ) | 129,021 | |||||||||||||||||||
Other securities | 1,575 | 501 | — | 2,076 | ||||||||||||||||||||
Total RJ Bank available for sale securities | 470,602 | 1,212 | (14,688 | ) | 457,126 | |||||||||||||||||||
Auction rate securities: | ||||||||||||||||||||||||
Municipal obligations | 125,371 | 6,831 | (1,268 | ) | 130,934 | |||||||||||||||||||
Preferred securities | 104,808 | 5,976 | — | 110,784 | ||||||||||||||||||||
Total auction rate securities | 230,179 | 12,807 | (1,268 | ) | 241,718 | |||||||||||||||||||
Total available for sale securities | $ | 700,781 | $ | 14,019 | $ | (15,956 | ) | $ | 698,844 | |||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 350,568 | $ | 1,938 | $ | (203 | ) | $ | 352,303 | |||||||||||||||
Non-agency CMOs (2) | 166,339 | 23 | (18,555 | ) | 147,807 | |||||||||||||||||||
Total RJ Bank available for sale securities | 516,907 | 1,961 | (18,758 | ) | 500,110 | |||||||||||||||||||
Auction rate securities: | ||||||||||||||||||||||||
Municipal obligations (3) | 131,208 | 870 | (8,519 | ) | 123,559 | |||||||||||||||||||
Preferred securities (4) | 111,721 | 232 | (1,760 | ) | 110,193 | |||||||||||||||||||
Total auction rate securities | 242,929 | 1,102 | (10,279 | ) | 233,752 | |||||||||||||||||||
Other securities | 3 | 9 | — | 12 | ||||||||||||||||||||
Total available for sale securities | $ | 759,839 | $ | 3,072 | $ | (29,037 | ) | $ | 733,874 | |||||||||||||||
September 30, 2011 | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 178,120 | $ | 639 | $ | (27 | ) | $ | 178,732 | |||||||||||||||
Non-agency CMOs (5) | 192,956 | — | (47,081 | ) | 145,875 | |||||||||||||||||||
Total RJ Bank available for sale securities | 371,076 | 639 | (47,108 | ) | 324,607 | |||||||||||||||||||
Auction rate securities: | ||||||||||||||||||||||||
Municipal obligations | 79,524 | — | — | 79,524 | ||||||||||||||||||||
Preferred securities | 116,524 | — | — | 116,524 | ||||||||||||||||||||
Total auction rate securities | 196,048 | — | — | 196,048 | ||||||||||||||||||||
Other securities | 3 | 7 | — | 10 | ||||||||||||||||||||
Total available for sale securities | $ | 567,127 | $ | 646 | $ | (47,108 | ) | $ | 520,665 | |||||||||||||||
-1 | As of September 30, 2013, the non-credit portion of OTTI recorded in AOCI was $11.1 million (before taxes). | |||||||||||||||||||||||
-2 | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $15.5 million (before taxes). | |||||||||||||||||||||||
-3 | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $7.6 million (before taxes). | |||||||||||||||||||||||
-4 | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $1.5 million (before taxes). | |||||||||||||||||||||||
-5 | As of September 30, 2011, the non-credit portion of OTTI recorded in AOCI was $37.9 million (before taxes). | |||||||||||||||||||||||
See Note 5 for additional information regarding the fair value of available for sale securities. | ||||||||||||||||||||||||
The contractual maturities, amortized cost, carrying values and current yields for our available for sale securities are as presented below. Since the majority of RJ Bank’s available for sale securities are backed by mortgages, actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. Expected maturities of ARS and other securities may differ significantly from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Within one year | After one but | After five but | After ten years | Total | ||||||||||||||||||||
within five | within ten | |||||||||||||||||||||||
years | years | |||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Agency MBS & CMOs: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 12,947 | $ | 55,761 | $ | 258,150 | $ | 326,858 | ||||||||||||||
Carrying value | — | 12,976 | 55,872 | 257,181 | 326,029 | |||||||||||||||||||
Weighted-average yield | — | 0.29 | % | 0.39 | % | 1.11 | % | 0.95 | % | |||||||||||||||
Non-agency CMOs: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | — | $ | 142,169 | $ | 142,169 | ||||||||||||||
Carrying value | — | — | — | 129,021 | 129,021 | |||||||||||||||||||
Weighted-average yield | — | — | — | 2.68 | % | 2.68 | % | |||||||||||||||||
Other securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | — | $ | 1,575 | $ | 1,575 | ||||||||||||||
Carrying value | — | — | — | 2,076 | 2,076 | |||||||||||||||||||
Weighted-average yield | — | — | — | — | — | |||||||||||||||||||
Sub-total agency MBS & CMOs, non-agency CMOs and other securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 12,947 | $ | 55,761 | $ | 401,894 | $ | 470,602 | ||||||||||||||
Carrying value | — | 12,976 | 55,872 | 388,278 | 457,126 | |||||||||||||||||||
Weighted-average yield | — | 0.29 | % | 0.39 | % | 1.63 | % | 1.44 | % | |||||||||||||||
Auction rate securities | ||||||||||||||||||||||||
Municipal obligations: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 2,010 | $ | 1,853 | $ | 121,508 | $ | 125,371 | ||||||||||||||
Carrying value | — | 2,014 | 1,877 | 127,043 | 130,934 | |||||||||||||||||||
Weighted-average yield | — | 0.22 | % | 0.31 | % | 0.51 | % | 0.5 | % | |||||||||||||||
Preferred securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | — | $ | 104,808 | $ | 104,808 | ||||||||||||||
Carrying value | — | — | — | 110,784 | 110,784 | |||||||||||||||||||
Weighted-average yield | — | — | — | 0.23 | % | 0.23 | % | |||||||||||||||||
Sub-total auction rate securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 2,010 | $ | 1,853 | $ | 226,316 | $ | 230,179 | ||||||||||||||
Carrying value | — | 2,014 | 1,877 | 237,827 | 241,718 | |||||||||||||||||||
Weighted-average yield | — | 0.22 | % | 0.31 | % | 0.38 | % | 0.38 | % | |||||||||||||||
Total available for sale securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 14,957 | $ | 57,614 | $ | 628,210 | $ | 700,781 | ||||||||||||||
Carrying value | — | 14,990 | 57,749 | 626,105 | 698,844 | |||||||||||||||||||
Weighted-average yield | — | 0.28 | % | 0.39 | % | 1.16 | % | 1.07 | % | |||||||||||||||
The gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, are as follows: | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
fair value | losses | fair value | losses | fair value | losses | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 157,580 | $ | (1,150 | ) | $ | 22,940 | $ | (386 | ) | $ | 180,520 | $ | (1,536 | ) | |||||||||
Non-agency CMOs | 4,906 | (556 | ) | 123,139 | (12,596 | ) | 128,045 | (13,152 | ) | |||||||||||||||
ARS municipal obligations | 771 | (100 | ) | 19,747 | (1,168 | ) | 20,518 | (1,268 | ) | |||||||||||||||
Total | $ | 163,257 | $ | (1,806 | ) | $ | 165,826 | $ | (14,150 | ) | $ | 329,083 | $ | (15,956 | ) | |||||||||
September 30, 2012 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
fair value | losses | fair value | losses | fair value | losses | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 43,792 | $ | (193 | ) | $ | 4,362 | $ | (10 | ) | $ | 48,154 | $ | (203 | ) | |||||||||
Non-agency CMOs | — | — | 146,591 | (18,555 | ) | 146,591 | (18,555 | ) | ||||||||||||||||
ARS municipal obligations | 98,497 | (8,519 | ) | — | — | 98,497 | (8,519 | ) | ||||||||||||||||
ARS preferred securities | 80,244 | (1,760 | ) | — | — | 80,244 | (1,760 | ) | ||||||||||||||||
Total | $ | 222,533 | $ | (10,472 | ) | $ | 150,953 | $ | (18,565 | ) | $ | 373,486 | $ | (29,037 | ) | |||||||||
The reference point for determining when securities are in a loss position is the reporting period end. As such, it is possible that a security had a fair value that exceeded its amortized cost on other days during the period. | ||||||||||||||||||||||||
Agency MBS and CMOs | ||||||||||||||||||||||||
The Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”), as well as the Government National Mortgage Association (“GNMA”), guarantee the contractual cash flows of the agency MBS and CMOs. At September 30, 2013, of the 35 of our U.S. government-sponsored enterprise MBS and CMOs in an unrealized loss position, 23 were in a continuous unrealized loss position for less than 12 months and 12 were for 12 months or more. We do not consider these securities other-than-temporarily impaired due to the guarantee provided by FNMA, FHLMC, and GNMA as to the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities to maturity. | ||||||||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||||||||
All individual non-agency securities are evaluated for OTTI on a quarterly basis. Only those non-agency CMOs whose amortized cost basis we do not expect to recover in full are considered to be other than temporarily impaired as we have the ability and intent to hold these securities to maturity. To assess whether the amortized cost basis of non-agency CMOs will be recovered, RJ Bank performs a cash flow analysis for each security. This comprehensive process considers borrower characteristics and the particular attributes of the loans underlying each security. Loan level analysis includes a review of historical default rates, loss severities, liquidations, prepayment speeds and delinquency trends. In addition to historical details, home prices and the economic outlook are considered to derive the assumptions utilized in the discounted cash flow model to project security specific cash flows, which factors in the amount of credit enhancement specific to the security. The difference between the present value of the cash flows expected and the amortized cost basis is the credit loss and is recorded as OTTI. | ||||||||||||||||||||||||
The significant assumptions used in the cash flow analysis of non-agency CMOs are as follows: | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Range | Weighted- | |||||||||||||||||||||||
average (1) | ||||||||||||||||||||||||
Default rate | 0% - 28.6% | 9.42% | ||||||||||||||||||||||
Loss severity | 0% - 76.6% | 43.14% | ||||||||||||||||||||||
Prepayment rate | 1.7% - 47.0% | 10.67% | ||||||||||||||||||||||
-1 | Represents the expected activity for the next twelve months. | |||||||||||||||||||||||
At September 30, 2013, 24 of the 25 non-agency CMOs were in a continuous unrealized loss position; 22 of which were in that position for 12 months or more and two were in a continuous unrealized loss position for less than 12 months. Based on the expected cash flows derived from the model utilized in our analysis, we expect to recover all unrealized losses not already recorded in earnings on our non-agency CMOs. However, it is possible that the underlying loan collateral of these securities will perform worse than current expectations, which may lead to adverse changes in the cash flows expected to be collected on these securities and potential future OTTI losses. As residential mortgage loans are the underlying collateral of these securities, the unrealized losses at September 30, 2013 reflect the uncertainty in the markets. | ||||||||||||||||||||||||
ARS | ||||||||||||||||||||||||
Our cost basis in the ARS we hold is the fair value of the securities in the period in which we acquired them. Only those ARS whose amortized cost basis we do not expect to recover in full are considered to be other-than-temporarily impaired as we have the ability and intent to hold these securities to maturity. | ||||||||||||||||||||||||
Within our municipal ARS holdings, we hold Jefferson County, Alabama Limited Obligation School Warrants ARS (“Jeff Co. Schools ARS”) and Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS (“Jeff Co. Sewers ARS”). In the prior fiscal year, Jefferson County, Alabama filed a voluntary petition for relief under Chapter 9 of the U.S. Bankruptcy Code in the U.S. District Court for the Northern District of Alabama; this proceeding is on-going. As of September 30, 2013, there is no impairment of the Jeff Co. Schools ARS or the Jeff Co. Sewers ARS since the fair value of such securities exceed their cost. | ||||||||||||||||||||||||
During the year ended September 30, 2012, unrealized losses arose for both the Jeff Co. Schools ARS and the Jeff Co. Sewers ARS based upon a decrease in the fair values of these securities. Based upon the available information as of September 30, 2012, we prepared cash flow forecasts for the purpose of determining the amount of any OTTI related to credit losses. Refer to the table in the following section for the amount of OTTI related to credit losses which we determined regarding these ARS holdings. | ||||||||||||||||||||||||
As of September 30, 2013, there is no potential impairment within the ARS preferred securities since the fair values of such securities exceed their cost. | ||||||||||||||||||||||||
As of September 30, 2012, the fair value of certain ARS preferred securities were less than their cost, indicating a potential impairment. Accordingly, we analyzed the credit ratings associated with each security as an indicator of potential credit impairment, and including subsequent ratings changes, we determined that all of the ARS preferred securities were rated investment grade by at least one rating agency at such time. Given that these ARS are by their design variable rate securities tied to short-term interest rates, decreases in projected future short-term interest rates have a negative impact on projected cash flows, and potentially a negative impact on the fair value. The unrealized losses at September 30, 2012 were primarily due to a decrease in projected future short-term interest rates at such time, which resulted in a lower fair value. We expect to recover the entire amortized cost basis of the ARS preferred securities we hold. At September 30, 2012, we concluded that none of the OTTI within our portfolio of ARS preferred securities related to credit losses. | ||||||||||||||||||||||||
Other-than-temporarily impaired securities | ||||||||||||||||||||||||
Although there is no intent to sell either our ARS or our non-agency CMOs and it is not more likely than not that we will be required to sell these securities, we do not expect to recover the entire amortized cost basis of certain securities within these portfolios. | ||||||||||||||||||||||||
Changes in the amount of OTTI related to credit losses recognized in other revenues on available for sale securities are as follows: | ||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amount related to credit losses on securities we held at the beginning of the year | $ | 27,581 | $ | 22,306 | $ | 18,816 | ||||||||||||||||||
Additions to the amount related to credit loss for which an OTTI was not previously recognized | — | 1,409 | 240 | |||||||||||||||||||||
Decreases to the amount related to credit loss for securities sold during the year | — | — | (6,744 | ) | ||||||||||||||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | 636 | 3,866 | 9,994 | |||||||||||||||||||||
Amount related to credit losses on securities we held at the end of the year | $ | 28,217 | $ | 27,581 | $ | 22,306 | ||||||||||||||||||
RECEIVABLES_FROM_AND_PAYABLES_
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS [Abstract] | ' | |||||||
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS | ' | |||||||
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS | ||||||||
Receivables from brokerage clients | ||||||||
Receivables from brokerage clients include amounts arising from normal cash and margin transactions and fees receivable. Margin receivables are collateralized by securities owned by brokerage clients. Such collateral is not reflected in the accompanying consolidated financial statements. The amount receivable from clients is as follows: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Brokerage client receivables | $ | 1,983,402 | $ | 2,067,207 | ||||
Allowance for doubtful accounts | (62 | ) | (90 | ) | ||||
Brokerage client receivables, net | $ | 1,983,340 | $ | 2,067,117 | ||||
Payables to brokerage clients | ||||||||
Payables to brokerage clients include brokerage client funds on deposit awaiting reinvestment. The following table presents a summary of such payables: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Brokerage client payables: | (in thousands) | |||||||
Interest bearing | $ | 5,457,107 | $ | 4,299,640 | ||||
Non-interest bearing | 485,736 | 285,016 | ||||||
Total brokerage client payables | $ | 5,942,843 | $ | 4,584,656 | ||||
BANK_LOANS_NET
BANK LOANS, NET | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
BANK LOANS, NET | ' | |||||||||||||||||||||||||||
BANK LOANS, NET | ||||||||||||||||||||||||||||
Bank client receivables are comprised of loans originated or purchased by RJ Bank and include C&I loans, commercial and residential real estate loans, as well as consumer loans. These receivables are collateralized by first or second mortgages on residential or other real property, other assets of the borrower, or are unsecured. | ||||||||||||||||||||||||||||
We segregate our loan portfolio into five loan portfolio segments: C&I, CRE, CRE construction, residential mortgage and consumer. These portfolio segments also serve as the portfolio loan classes for purposes of credit analysis, except for residential mortgage loans which are further disaggregated into residential first mortgage and residential home equity classes. | ||||||||||||||||||||||||||||
The following table presents the balances for both the held for sale and held for investment loan portfolios as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio: | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2011 | ||||||||||||||||||||||||||
Balance | % | Balance | % | Balance | % | |||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Loans held for sale, net(1) | $ | 110,292 | 1 | % | $ | 160,515 | 2 | % | $ | 102,236 | 2 | % | ||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||
C&I loans | 4,439,668 | 50 | % | 4,553,061 | 55 | % | 3,987,122 | 59 | % | |||||||||||||||||||
CRE construction loans | 38,964 | — | 26,360 | 1 | % | 29,087 | — | |||||||||||||||||||||
CRE loans | 1,075,986 | 12 | % | 828,414 | 10 | % | 742,889 | 11 | % | |||||||||||||||||||
Residential mortgage loans | 1,743,787 | 20 | % | 1,690,465 | 21 | % | 1,754,925 | 26 | % | |||||||||||||||||||
Consumer loans | 554,210 | 6 | % | 350,770 | 4 | % | 7,438 | — | ||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||||||
C&I loans | 806,337 | 9 | % | 465,770 | 6 | % | 113,817 | 2 | % | |||||||||||||||||||
CRE construction loans | 21,876 | — | 23,114 | — | — | — | ||||||||||||||||||||||
CRE loans | 207,060 | 2 | % | 108,036 | 1 | % | — | — | ||||||||||||||||||||
Residential mortgage loans | 1,863 | — | 1,521 | — | 1,561 | — | ||||||||||||||||||||||
Consumer loans | 1,595 | — | 1,725 | — | — | — | ||||||||||||||||||||||
Total loans held for investment | 8,891,346 | 8,049,236 | 6,636,839 | |||||||||||||||||||||||||
Net unearned income and deferred expenses | (43,936 | ) | (70,698 | ) | (45,417 | ) | ||||||||||||||||||||||
Total loans held for investment, net(1) | 8,847,410 | 7,978,538 | 6,591,422 | |||||||||||||||||||||||||
Total loans held for sale and investment | 8,957,702 | 100 | % | 8,139,053 | 100 | % | 6,693,658 | 100 | % | |||||||||||||||||||
Allowance for loan losses | (136,501 | ) | (147,541 | ) | (145,744 | ) | ||||||||||||||||||||||
Bank loans, net | $ | 8,821,201 | $ | 7,991,512 | $ | 6,547,914 | ||||||||||||||||||||||
September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||||||
Balance | % | Balance | % | |||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Loans held for sale, net(1) | 6,114 | — | $ | 40,484 | 1 | % | ||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||
C&I loans | 3,173,093 | 51 | % | 3,030,575 | 45 | % | ||||||||||||||||||||||
CRE construction loans | 65,512 | 1 | % | 163,951 | 2 | % | ||||||||||||||||||||||
CRE loans | 937,669 | 15 | % | 1,080,160 | 16 | % | ||||||||||||||||||||||
Residential mortgage loans | 2,013,681 | 32 | % | 2,395,080 | 35 | % | ||||||||||||||||||||||
Consumer loans | 23,940 | — | 22,816 | — | ||||||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||||||
C&I loans | 59,630 | 1 | % | 49,341 | 1 | % | ||||||||||||||||||||||
Residential mortgage loans | 1,650 | — | 1,915 | — | ||||||||||||||||||||||||
Total loans held for investment | 6,275,175 | 6,743,838 | ||||||||||||||||||||||||||
Net unearned income and deferred expenses | (39,276 | ) | (40,077 | ) | ||||||||||||||||||||||||
Total loans held for investment, net(1) | 6,235,899 | 6,703,761 | ||||||||||||||||||||||||||
Total loans held for sale and investment | 6,242,013 | 100 | % | 6,744,245 | 100 | % | ||||||||||||||||||||||
Allowance for loan losses | (147,084 | ) | (150,272 | ) | ||||||||||||||||||||||||
Bank loans, net | $ | 6,094,929 | $ | 6,593,973 | ||||||||||||||||||||||||
-1 | Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs. | |||||||||||||||||||||||||||
RJ Bank originated or purchased $1.3 billion, $903.2 million and $354.9 million of loans held for sale for the years ended September 30, 2013, 2012 and 2011, respectively. There were proceeds from the sale of held for sale loans of $300.2 million, $183.6 million and $93.2 million for the years ended September 30, 2013, 2012 and 2011, respectively, resulting in net gains of $3.6 million, $1.7 million and $830 thousand, respectively. Unrealized losses recorded in the Consolidated Statements of Income and Comprehensive Income to reflect the loans held for sale at the lower of cost or market value were $2.9 million, $1.2 million and $719 thousand for the years ended September 30, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||
The following table presents purchases and sales of any loans held for investment by portfolio segment: | ||||||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Purchases | Sales | Purchases | Sales | Purchases | Sales | |||||||||||||||||||||||
C&I loans | $ | 358,309 | $ | 176,186 | $ | 470,859 | (1) | $ | 85,090 | $ | 156,475 | $ | 57,209 | |||||||||||||||
CRE construction loans | — | — | 31,074 | (1) | — | — | — | |||||||||||||||||||||
CRE loans | 5,048 | — | 121,245 | (1) | — | 2,630 | — | |||||||||||||||||||||
Residential mortgage loans | 26,618 | — | 38,220 | — | 91,745 | — | ||||||||||||||||||||||
Consumer loans | — | — | 185,026 | (2) | — | — | — | |||||||||||||||||||||
Total | $ | 389,975 | $ | 176,186 | $ | 846,424 | $ | 85,090 | $ | 250,850 | $ | 57,209 | ||||||||||||||||
-1 | Includes a total of $367 million for a Canadian loan portfolio purchased during the year ended September 30, 2012, which was comprised of $219 million C&I, $31 million of CRE construction and $117 million of CRE loans. | |||||||||||||||||||||||||||
-2 | Represents loans primarily secured by the borrower’s marketable securities. | |||||||||||||||||||||||||||
The following table presents the comparative data for nonperforming loans held for investment and total nonperforming assets: | ||||||||||||||||||||||||||||
As of September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||||||||||
C&I loans | $ | 89 | $ | 19,517 | $ | 25,685 | $ | — | $ | — | ||||||||||||||||||
CRE loans | 25,512 | 8,404 | 15,842 | 67,071 | 73,961 | |||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 75,889 | 78,372 | 90,992 | 80,754 | 54,986 | |||||||||||||||||||||||
Home equity loans/lines | 468 | 367 | 67 | 71 | 111 | |||||||||||||||||||||||
Total nonaccrual loans | 101,958 | 106,660 | 132,586 | 147,896 | 129,058 | |||||||||||||||||||||||
Accruing loans which are 90 days past due: | ||||||||||||||||||||||||||||
CRE loans | — | — | — | 830 | 12,461 | |||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | — | — | 690 | 5,098 | 16,863 | |||||||||||||||||||||||
Home equity loans/lines | — | — | 47 | 159 | — | |||||||||||||||||||||||
Total accruing loans which are 90 days past due | — | — | 737 | 6,087 | 29,324 | |||||||||||||||||||||||
Total nonperforming loans | 101,958 | 106,660 | 133,323 | 153,983 | 158,382 | |||||||||||||||||||||||
Real estate owned and other repossessed assets, net: | ||||||||||||||||||||||||||||
CRE | — | 4,902 | 7,707 | 19,486 | 4,646 | |||||||||||||||||||||||
Residential: | ||||||||||||||||||||||||||||
First mortgage | 2,434 | 3,316 | 6,852 | 8,439 | 4,045 | |||||||||||||||||||||||
Home equity | — | — | 13 | — | — | |||||||||||||||||||||||
Total | 2,434 | 8,218 | 14,572 | 27,925 | 8,691 | |||||||||||||||||||||||
Total nonperforming assets, net | $ | 104,392 | $ | 114,878 | $ | 147,895 | $ | 181,908 | $ | 167,073 | ||||||||||||||||||
Total nonperforming assets, net as a % of RJ Bank total assets | 0.99 | % | 1.18 | % | 1.64 | % | 2.48 | % | 2.1 | % | ||||||||||||||||||
The table of nonperforming assets above excludes $10.2 million, $12.9 million, $10.3 million, $8.2 million, and $1.3 million as of September 30, 2013, 2012, 2011, 2010, and 2009 respectively, of residential TDRs which were returned to accrual status in accordance with our policy. | ||||||||||||||||||||||||||||
As of September 30, 2013 and 2012, RJ Bank had no outstanding commitments to lend on nonperforming loans. | ||||||||||||||||||||||||||||
The gross interest income related to the nonperforming loans reflected in the previous table, which would have been recorded had these loans been current in accordance with their original terms, totaled $3.2 million, $4.3 million and $5.1 million for the years ended September 30, 2013, 2012 and 2011, respectively. The interest income recognized on nonperforming loans was $1.5 million, $1.8 million and $1.2 million for the years ended September 30, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||
The following table presents an analysis of the payment status of loans held for investment: | ||||||||||||||||||||||||||||
30-59 | 60-89 | 90 days | Total | Current (1) | Total loans held for | |||||||||||||||||||||||
days | days | or more | past due | investment (2) | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
As of September 30, 2013: | ||||||||||||||||||||||||||||
C&I loans | $ | 135 | $ | — | $ | — | $ | 135 | $ | 5,245,870 | $ | 5,246,005 | ||||||||||||||||
CRE construction loans | — | — | — | — | 60,840 | 60,840 | ||||||||||||||||||||||
CRE loans | — | — | 17 | 17 | 1,283,029 | 1,283,046 | ||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 4,756 | 2,068 | 43,004 | 49,828 | 1,673,619 | 1,723,447 | ||||||||||||||||||||||
Home equity loans/lines | — | — | 372 | 372 | 21,831 | 22,203 | ||||||||||||||||||||||
Consumer loans | — | — | — | — | 555,805 | 555,805 | ||||||||||||||||||||||
Total loans held for investment, net | $ | 4,891 | $ | 2,068 | $ | 43,393 | $ | 50,352 | $ | 8,840,994 | $ | 8,891,346 | ||||||||||||||||
As of September 30, 2012: | ||||||||||||||||||||||||||||
C&I loans | $ | 222 | $ | — | $ | — | $ | 222 | $ | 5,018,609 | $ | 5,018,831 | ||||||||||||||||
CRE construction loans | — | — | — | — | 49,474 | 49,474 | ||||||||||||||||||||||
CRE loans | — | — | 4,960 | 4,960 | 931,490 | 936,450 | ||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 7,239 | 3,037 | 49,476 | 59,752 | 1,607,156 | 1,666,908 | ||||||||||||||||||||||
Home equity loans/lines | 88 | 250 | — | 338 | 24,740 | 25,078 | ||||||||||||||||||||||
Consumer loans | — | — | — | — | 352,495 | 352,495 | ||||||||||||||||||||||
Total loans held for investment, net | $ | 7,549 | $ | 3,287 | $ | 54,436 | $ | 65,272 | $ | 7,983,964 | $ | 8,049,236 | ||||||||||||||||
-1 | Includes $55.5 million and $48.6 million of nonaccrual loans at September 30, 2013 and 2012, respectively, which are performing pursuant to their contractual terms. | |||||||||||||||||||||||||||
-2 | Excludes any net unearned income and deferred expenses. | |||||||||||||||||||||||||||
The following table provides a summary of RJ Bank’s impaired loans: | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||
Gross | Unpaid | Allowance | Gross | Unpaid | Allowance | |||||||||||||||||||||||
recorded | principal | for losses | recorded | principal | for losses | |||||||||||||||||||||||
investment | balance | investment | balance | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Impaired loans with allowance for loan losses:(1) | ||||||||||||||||||||||||||||
C&I loans | $ | — | $ | — | $ | — | $ | 19,517 | $ | 30,314 | $ | 5,232 | ||||||||||||||||
CRE loans | 17 | 26 | 1 | 18 | 26 | 1 | ||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 52,624 | 77,240 | 6,646 | 70,985 | 106,384 | 9,214 | ||||||||||||||||||||||
Home equity loans/lines | 36 | 74 | 4 | 128 | 128 | 42 | ||||||||||||||||||||||
Total | 52,677 | 77,340 | 6,651 | 90,648 | 136,852 | 14,489 | ||||||||||||||||||||||
Impaired loans without allowance for loan losses:(2) | ||||||||||||||||||||||||||||
C&I loans | 89 | 94 | — | — | — | — | ||||||||||||||||||||||
CRE loans | 25,495 | 45,229 | — | 8,386 | 18,440 | — | ||||||||||||||||||||||
Residential - first mortgage loans | 21,445 | 32,617 | — | 9,247 | 15,354 | — | ||||||||||||||||||||||
Total | 47,029 | 77,940 | — | 17,633 | 33,794 | — | ||||||||||||||||||||||
Total impaired loans | $ | 99,706 | $ | 155,280 | $ | 6,651 | $ | 108,281 | $ | 170,646 | $ | 14,489 | ||||||||||||||||
-1 | Impaired loan balances have had reserves established based upon management’s analysis. | |||||||||||||||||||||||||||
-2 | When the discounted cash flow, collateral value or market value equals or exceeds the carrying value of the loan, then the loan does not require an allowance. These are generally loans in process of foreclosure that have already been adjusted to fair value. | |||||||||||||||||||||||||||
The preceding table includes $2.2 million CRE, and $36.6 million residential first mortgage TDRs at September 30, 2013. In addition, the preceding table includes $1.7 million C&I, $3.4 million CRE, $26.7 million residential first mortgage and $128 thousand residential home equity TDRs at September 30, 2012. | ||||||||||||||||||||||||||||
The average balance of the total impaired loans and the related interest income recognized in the Consolidated Statements of Income and Comprehensive Income are as follows: | ||||||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Average impaired loan balance: | ||||||||||||||||||||||||||||
C&I loans | $ | 15,398 | $ | 10,196 | $ | 8,673 | ||||||||||||||||||||||
CRE loans | 13,352 | 11,902 | 38,542 | |||||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 77,511 | 86,854 | 85,863 | |||||||||||||||||||||||||
Home equity loans/lines | 93 | 138 | 142 | |||||||||||||||||||||||||
Total | $ | 106,354 | $ | 109,090 | $ | 133,220 | ||||||||||||||||||||||
Interest income recognized: | ||||||||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | $ | 1,644 | $ | 1,397 | $ | 955 | ||||||||||||||||||||||
Home equity loans/lines | — | 4 | 5 | |||||||||||||||||||||||||
Total | $ | 1,644 | $ | 1,401 | $ | 960 | ||||||||||||||||||||||
During the years ended September 30, 2013, 2012, and 2011, RJ Bank granted concessions to borrowers having financial difficulties, for which the resulting modification was deemed a TDR. All of the concessions granted for first mortgage residential loans were generally interest rate reductions, interest capitalization, principal forbearance, amortization and maturity date extensions, and, for the current fiscal year, release of liability ordered under chapter 7 bankruptcy not reaffirmed by the borrower. The concessions granted for the C&I and CRE loans were generally interest rate reductions and the release of guarantor liabilities. The table below presents the TDRs that occurred during the respective periods presented: | ||||||||||||||||||||||||||||
Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
contracts | outstanding | outstanding | ||||||||||||||||||||||||||
recorded | recorded | |||||||||||||||||||||||||||
investment | investment | |||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Year ended September 30, 2013: | ||||||||||||||||||||||||||||
Residential – first mortgage loans | 56 | $ | 13,270 | $ | 13,551 | |||||||||||||||||||||||
Year ended September 30, 2012: | ||||||||||||||||||||||||||||
Residential – first mortgage loans | 20 | $ | 5,875 | $ | 6,283 | |||||||||||||||||||||||
Year ended September 30, 2011: | ||||||||||||||||||||||||||||
C&I loans | 1 | $ | 12,450 | $ | 12,034 | |||||||||||||||||||||||
CRE loans | 1 | 9,226 | 9,226 | |||||||||||||||||||||||||
Residential – first mortgage loans | 25 | 8,027 | 8,457 | |||||||||||||||||||||||||
Total | 27 | $ | 29,703 | $ | 29,717 | |||||||||||||||||||||||
During the years ended September 30, 2013, 2012, and 2011, there were two, five, and two residential first mortgage TDRs, respectively, with recorded investments of $291 thousand, $1.2 million, and $559 thousand, respectively, for which there was a payment default and for which the respective loan was modified as a TDR within the 12 months prior to the default. | ||||||||||||||||||||||||||||
As of September 30, 2013 and 2012, RJ Bank had no outstanding commitments on TDRs. | ||||||||||||||||||||||||||||
The credit quality of RJ Bank’s loan portfolio is summarized monthly by management using the standard asset classification system utilized by bank regulators for the residential mortgage and consumer loan portfolios and internal risk ratings, which correspond to the same standard asset classifications for the C&I, CRE construction, and CRE loan portfolios. These classifications are divided into three groups: Not Classified (Pass), Special Mention, and Classified or Adverse Rating (Substandard, Doubtful and Loss) and are defined as follows: | ||||||||||||||||||||||||||||
Pass – Loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell, of any underlying collateral in a timely manner. | ||||||||||||||||||||||||||||
Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose RJ Bank to sufficient risk to warrant an adverse classification. | ||||||||||||||||||||||||||||
Substandard – Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that RJ Bank will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||
Doubtful – Loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions and values. | ||||||||||||||||||||||||||||
Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on RJ Bank’s books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. RJ Bank does not have any loan balances within this classification as in accordance with its accounting policy, loans, or a portion thereof considered to be uncollectible, are charged-off prior to the assignment of this classification. | ||||||||||||||||||||||||||||
RJ Bank’s credit quality of its held for investment loan portfolio is as follows: | ||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||
C&I | CRE | CRE | First | Home | Consumer | Total | ||||||||||||||||||||||
construction | mortgage | equity | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Pass | $ | 5,012,786 | $ | 60,840 | $ | 1,257,130 | $ | 1,627,090 | $ | 21,582 | $ | 555,805 | $ | 8,535,233 | ||||||||||||||
Special mention (1) | 139,159 | — | 195 | 18,912 | 150 | — | 158,416 | |||||||||||||||||||||
Substandard (1) | 94,060 | — | 23,524 | 77,446 | 470 | — | 195,500 | |||||||||||||||||||||
Doubtful (1) | — | — | 2,197 | — | — | — | 2,197 | |||||||||||||||||||||
Total | $ | 5,246,005 | $ | 60,840 | $ | 1,283,046 | $ | 1,723,448 | $ | 22,202 | $ | 555,805 | $ | 8,891,346 | ||||||||||||||
September 30, 2012: | ||||||||||||||||||||||||||||
Pass | $ | 4,777,738 | $ | 49,474 | $ | 806,427 | $ | 1,564,257 | $ | 24,505 | $ | 352,495 | $ | 7,574,896 | ||||||||||||||
Special mention (1) | 179,044 | — | 59,001 | 22,606 | 206 | — | 260,857 | |||||||||||||||||||||
Substandard (1) | 60,323 | — | 67,578 | 80,045 | 367 | — | 208,313 | |||||||||||||||||||||
Doubtful (1) | 1,726 | — | 3,444 | — | — | — | 5,170 | |||||||||||||||||||||
Total | $ | 5,018,831 | $ | 49,474 | $ | 936,450 | $ | 1,666,908 | $ | 25,078 | $ | 352,495 | $ | 8,049,236 | ||||||||||||||
-1 | Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans. | |||||||||||||||||||||||||||
The credit quality of RJ Bank’s performing residential first mortgage loan portfolio is additionally assessed utilizing updated LTV ratios. RJ Bank further segregates all of its performing residential first mortgage loan portfolio by LTV ratio with higher reserve percentages allocated to the higher LTV loans. Current LTVs are updated using the most recently available information (generally on a one quarter lag) and are estimated based on the initial appraisal obtained at the time of origination, adjusted using relevant market indices for housing price changes that have occurred since origination. The value of the homes could vary from actual market values due to change in the condition of the underlying property, variations in housing price changes within current valuation indices and other factors. | ||||||||||||||||||||||||||||
The table below presents the most recently available update of the performing residential first mortgage loan portfolio summarized by current LTV. The amounts in the table represent the entire loan balance: | ||||||||||||||||||||||||||||
Balance(1) | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
LTV range: | ||||||||||||||||||||||||||||
LTV less than 50% | $ | 380,480 | ||||||||||||||||||||||||||
LTV greater than 50% but less than 80% | 670,647 | |||||||||||||||||||||||||||
LTV greater than 80% but less than 100% | 276,525 | |||||||||||||||||||||||||||
LTV greater than 100%, but less than 120% | 83,970 | |||||||||||||||||||||||||||
LTV greater than 120% but less than 140% | 20,469 | |||||||||||||||||||||||||||
LTV greater than 140% | 4,070 | |||||||||||||||||||||||||||
Total | $ | 1,436,161 | ||||||||||||||||||||||||||
-1 | Excludes loans that have full repurchase recourse for any delinquent loans. | |||||||||||||||||||||||||||
Changes in the allowance for loan losses of RJ Bank by portfolio segment are as follows: | ||||||||||||||||||||||||||||
Loans held for investment | ||||||||||||||||||||||||||||
Loans held | C&I | CRE | CRE | Residential | Consumer | Total | ||||||||||||||||||||||
for sale | construction | mortgage | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Year ended September 30, 2013: | ||||||||||||||||||||||||||||
Balance at beginning of year: | $ | — | $ | 92,409 | $ | 739 | $ | 27,546 | $ | 26,138 | $ | 709 | $ | 147,541 | ||||||||||||||
(Benefit) provision for loan losses | — | 4,505 | 273 | (301 | ) | (2,540 | ) | 628 | 2,565 | |||||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||||
Charge-offs | — | (813 | ) | — | (9,599 | ) | (6,771 | ) | (254 | ) | (17,437 | ) | ||||||||||||||||
Recoveries | — | 117 | — | 1,680 | 2,299 | 32 | 4,128 | |||||||||||||||||||||
Net charge-offs | — | (696 | ) | — | (7,919 | ) | (4,472 | ) | (222 | ) | (13,309 | ) | ||||||||||||||||
Foreign exchange translation adjustment | — | (224 | ) | (12 | ) | (60 | ) | — | — | (296 | ) | |||||||||||||||||
Balance at September 30, 2013 | $ | — | 95,994 | 1,000 | 19,266 | 19,126 | 1,115 | 136,501 | ||||||||||||||||||||
Year ended September 30, 2012: | ||||||||||||||||||||||||||||
Balance at beginning of year: | $ | 5 | $ | 81,267 | $ | 490 | $ | 30,752 | $ | 33,210 | $ | 20 | $ | 145,744 | ||||||||||||||
(Benefit) provision for loan losses | (5 | ) | 21,543 | 242 | (2,305 | ) | 5,655 | 764 | 25,894 | |||||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||||
Charge-offs | — | (10,486 | ) | — | (2,000 | ) | (15,270 | ) | (96 | ) | (27,852 | ) | ||||||||||||||||
Recoveries | — | — | — | 1,074 | 2,543 | 21 | 3,638 | |||||||||||||||||||||
Net charge-offs | — | (10,486 | ) | — | (926 | ) | (12,727 | ) | (75 | ) | (24,214 | ) | ||||||||||||||||
Foreign currency translation adjustment | — | 85 | 7 | 25 | — | — | 117 | |||||||||||||||||||||
Balance at September 30, 2012 | $ | — | $ | 92,409 | $ | 739 | $ | 27,546 | $ | 26,138 | $ | 709 | $ | 147,541 | ||||||||||||||
Year ended September 30, 2011: | ||||||||||||||||||||||||||||
Balance at beginning of year: | $ | 23 | $ | 60,464 | $ | 4,473 | $ | 47,771 | $ | 34,297 | $ | 56 | $ | 147,084 | ||||||||||||||
(Benefit) provision for loan losses | (18 | ) | 21,261 | (3,983 | ) | (3,485 | ) | 19,670 | 210 | 33,655 | ||||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||||
Charge-offs | — | (458 | ) | — | (15,204 | ) | (22,501 | ) | (255 | ) | (38,418 | ) | ||||||||||||||||
Recoveries | — | — | — | 1,670 | 1,744 | 9 | 3,423 | |||||||||||||||||||||
Net charge-offs | — | (458 | ) | — | (13,534 | ) | (20,757 | ) | (246 | ) | (34,995 | ) | ||||||||||||||||
Balance at September 30, 2011 | $ | 5 | $ | 81,267 | $ | 490 | $ | 30,752 | $ | 33,210 | $ | 20 | $ | 145,744 | ||||||||||||||
The following table presents, by loan portfolio segment, RJ Bank’s recorded investment and related allowance for loan losses: | ||||||||||||||||||||||||||||
Loans held for investment | ||||||||||||||||||||||||||||
C&I | CRE | CRE | Residential | Consumer | Total | |||||||||||||||||||||||
construction | mortgage | |||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 1 | $ | 2,379 | $ | — | $ | 2,380 | ||||||||||||||||
Collectively evaluated for impairment | 95,994 | 1,000 | 19,265 | 16,747 | 1,115 | 134,121 | ||||||||||||||||||||||
Total allowance for loan losses | $ | 95,994 | $ | 1,000 | $ | 19,266 | $ | 19,126 | $ | 1,115 | $ | 136,501 | ||||||||||||||||
Recorded investment:(1) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 89 | $ | — | $ | 25,512 | $ | 36,648 | $ | — | $ | 62,249 | ||||||||||||||||
Collectively evaluated for impairment | 5,245,916 | 60,840 | 1,257,534 | 1,709,002 | 555,805 | 8,829,097 | ||||||||||||||||||||||
Total recorded investment | $ | 5,246,005 | $ | 60,840 | $ | 1,283,046 | $ | 1,745,650 | $ | 555,805 | $ | 8,891,346 | ||||||||||||||||
September 30, 2012: | ||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,232 | $ | — | $ | 1 | $ | 3,157 | $ | — | $ | 8,390 | ||||||||||||||||
Collectively evaluated for impairment | 87,177 | 739 | 27,545 | 22,981 | 709 | 139,151 | ||||||||||||||||||||||
Total allowance for loan losses | $ | 92,409 | $ | 739 | $ | 27,546 | $ | 26,138 | $ | 709 | $ | 147,541 | ||||||||||||||||
Recorded investment:(1) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 19,517 | $ | — | $ | 8,404 | $ | 26,851 | $ | — | $ | 54,772 | ||||||||||||||||
Collectively evaluated for impairment | 4,999,314 | 49,474 | 928,046 | 1,665,135 | 352,495 | 7,994,464 | ||||||||||||||||||||||
Total recorded investment | $ | 5,018,831 | $ | 49,474 | $ | 936,450 | $ | 1,691,986 | $ | 352,495 | $ | 8,049,236 | ||||||||||||||||
-1 | Excludes any net unearned income and deferred expenses. | |||||||||||||||||||||||||||
RJ Bank had no recorded investment in loans acquired with deteriorated credit quality as of either September 30, 2013 or 2012. | ||||||||||||||||||||||||||||
The reserve for unfunded lending commitments, included in trade and other payables on our Consolidated Statements of Financial Condition was $9.3 million at each of September 30, 2013 and 2012. |
PREPAID_EXPENSES_AND_OTHER_ASS
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Prepaid Expense and Other Assets [Abstract] | ' | |||||||
Prepaid Expenses and Other Assets | ' | |||||||
PREPAID EXPENSES AND OTHER ASSETS | ||||||||
Prepaid expenses and other assets include the following: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Investments in company-owned life insurance (1) | $ | 244,921 | $ | 188,631 | ||||
Investment in FHLB stock | 12,125 | 13,192 | ||||||
Investment in FRB stock | 21,300 | 21,300 | ||||||
Prepaid expenses | 77,765 | 97,033 | ||||||
Low-income housing tax credit fund financing asset (2) | 33,670 | 41,588 | ||||||
Indemnification asset (3) | 171,135 | 197,898 | ||||||
Other assets | 50,509 | 45,924 | ||||||
Prepaid expenses and other assets | $ | 611,425 | $ | 605,566 | ||||
-1 | As of September 30, 2013, we own life insurance policies with a cumulative face value of $785.1 million. | |||||||
-2 | In a prior year, we sold an investment in a low-income housing tax credit fund and we guaranteed the return on investment to the purchaser. As a result of this guarantee obligation, we are the primary beneficiary of the fund (see Note 11 for further information regarding the consolidation of this fund) and we have accounted for this transaction as a financing. As a financing transaction, we continue to account for the asset transferred to the purchaser, and maintain a related liability corresponding to our obligations under the guarantee. As the benefits are delivered to the purchaser of the investment, this financing asset and the related liability decrease. A related financing liability in the amount of $33.7 million and $41.7 million is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2013 and 2012, respectively. See Note 20 for further discussion of our obligations under the guarantee. | |||||||
-3 | The indemnification asset primarily pertains to legal matters for which Regions has indemnified RJF in connection with our acquisition of Morgan Keegan. The liabilities related to such matters are included in trade and other payables on our Consolidated Statements of Financial Condition. See Notes 3 and 20 for additional information. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES [Abstract] | ' | |||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | ' | |||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | ||||||||||||||||||||||||
A VIE requires consolidation by the entity’s primary beneficiary. We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. See the “Evaluation of VIE’s to determine whether consolidation is required” section of Note 2 for a discussion of our principal involvement with the VIE’s and a summary of our accounting policies regarding our evaluations of VIE’s to determine whether we hold a variable interest and whether we are deemed to be the primary beneficiary of any VIE’s in which we hold an interest. | ||||||||||||||||||||||||
VIEs where we are the primary beneficiary | ||||||||||||||||||||||||
Of the VIEs in which we hold an interest, we have determined that the EIF Funds, the Restricted Stock Trust Fund and certain LIHTC Funds require consolidation in our financial statements as we are deemed the primary beneficiary of those VIEs (see Note 2 for discussion of our accounting policies governing these determinations). The aggregate assets and liabilities of the entities we consolidate are provided in the table below. | ||||||||||||||||||||||||
Aggregate | Aggregate | |||||||||||||||||||||||
assets (1) | liabilities (1) | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
LIHTC Funds | $ | 208,634 | $ | 78,055 | ||||||||||||||||||||
Guaranteed LIHTC Fund (2) | 81,712 | — | ||||||||||||||||||||||
Restricted Stock Trust Fund | 13,075 | 6,710 | ||||||||||||||||||||||
EIF Funds | 7,588 | — | ||||||||||||||||||||||
Total | $ | 311,009 | $ | 84,765 | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||
LIHTC Funds | $ | 234,592 | $ | 97,217 | ||||||||||||||||||||
Guaranteed LIHTC Fund (2) | 85,332 | 2,208 | ||||||||||||||||||||||
Restricted Stock Trust Fund | 15,387 | 7,508 | ||||||||||||||||||||||
EIF Funds | 15,736 | — | ||||||||||||||||||||||
Total | $ | 351,047 | $ | 106,933 | ||||||||||||||||||||
-1 | Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. | |||||||||||||||||||||||
-2 | In connection with one of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has guaranteed the investor members’ return on their investment in the fund (the “Guaranteed LIHTC Fund”). See Note 10 for information regarding the financing asset associated with this fund, and see Note 20 for additional information regarding this commitment. | |||||||||||||||||||||||
The following table presents information about the carrying value of the assets, liabilities and equity of the VIEs which we consolidate and are included within our Consolidated Statements of Financial Condition. The noncontrolling interests presented in this table represent the portion of these net assets which are not ours. | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Assets segregated pursuant to regulations and other segregated assets | $ | 11,857 | $ | 14,230 | ||||||||||||||||||||
Receivables, other | 5,763 | 5,273 | ||||||||||||||||||||||
Investments in real estate partnerships held by consolidated variable interest entities | 272,096 | 299,611 | ||||||||||||||||||||||
Trust fund investment in RJF common stock (1) | 13,073 | 15,387 | ||||||||||||||||||||||
Prepaid expenses and other assets | 8,230 | 16,297 | ||||||||||||||||||||||
Total assets | $ | 311,019 | $ | 350,798 | ||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||||||
Trade and other payables | $ | 1,428 | $ | 2,804 | ||||||||||||||||||||
Intercompany payables | 6,390 | 8,603 | ||||||||||||||||||||||
Loans payable of consolidated variable interest entities (2) | 62,938 | 81,713 | ||||||||||||||||||||||
Total liabilities | 70,756 | 93,120 | ||||||||||||||||||||||
RJF equity | 6,175 | 6,105 | ||||||||||||||||||||||
Noncontrolling interests | 234,088 | 251,573 | ||||||||||||||||||||||
Total equity | 240,263 | 257,678 | ||||||||||||||||||||||
Total liabilities and equity | $ | 311,019 | $ | 350,798 | ||||||||||||||||||||
-1 | Included in treasury stock in our Consolidated Statements of Financial Condition. | |||||||||||||||||||||||
-2 | Comprised of several non-recourse loans. We are not contingently liable under any of these loans (see Note 16 for additional information). | |||||||||||||||||||||||
The following table presents information about the net income (loss) of the VIEs which we consolidate, and is included within our Consolidated Statements of Income and Comprehensive Income. The noncontrolling interests presented in this table represent the portion of the net loss from these VIEs which is not ours. | ||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Interest | $ | 4 | $ | 3 | $ | 2 | ||||||||||||||||||
Other | 3,538 | 3,944 | 5,385 | |||||||||||||||||||||
Total revenues | 3,542 | 3,947 | 5,387 | |||||||||||||||||||||
Interest expense | 3,959 | 5,032 | 6,049 | |||||||||||||||||||||
Net revenues (expense) | (417 | ) | (1,085 | ) | (662 | ) | ||||||||||||||||||
Non-interest expenses | 27,292 | 25,207 | 18,670 | |||||||||||||||||||||
Net loss including noncontrolling interests | (27,709 | ) | (26,292 | ) | (19,332 | ) | ||||||||||||||||||
Net loss attributable to noncontrolling interests | (27,779 | ) | (26,860 | ) | (17,988 | ) | ||||||||||||||||||
Net income (loss) attributable to RJF | $ | 70 | $ | 568 | $ | (1,344 | ) | |||||||||||||||||
Low-income housing tax credit funds | ||||||||||||||||||||||||
RJTCF is the managing member or general partner in approximately 84 separate low-income housing tax credit funds having one or more investor members or limited partners, 75 of which are determined to be VIEs and nine of which are determined not to be VIEs. RJTCF has concluded that it is the primary beneficiary of eight of the 74 non-guaranteed LIHTC Fund VIEs and accordingly, consolidates these funds. One of the non-guaranteed LIHTC Funds previously consolidated was liquidated during the year ended September 30, 2013. In addition, RJTCF consolidates the one Guaranteed LIHTC Fund VIE it sponsors. See Note 20 for further discussion of the guarantee obligation as well as other RJTCF commitments. RJTCF also consolidates four of the funds it determines not to be VIEs. | ||||||||||||||||||||||||
VIEs where we hold a variable interest but we are not the primary beneficiary | ||||||||||||||||||||||||
Low-income housing tax credit funds | ||||||||||||||||||||||||
RJTCF does not consolidate the LIHTC Fund VIEs that it determines it is not the primary beneficiary of. Our risk of loss is limited to our investments in, advances to, and receivables due from these funds. | ||||||||||||||||||||||||
New market tax credit funds | ||||||||||||||||||||||||
An affiliate of Morgan Keegan is the managing member of seven NMTC Funds and as discussed in Note 2, the affiliate of Morgan Keegan is not deemed to be the primary beneficiary of these NMTC Funds and, therefore, they are not consolidated. Our risk of loss is limited to our receivables due from these funds. | ||||||||||||||||||||||||
Other real estate limited partnerships and LLCs | ||||||||||||||||||||||||
We have a variable interest in several limited partnerships involved in various real estate activities in which a subsidiary is either the general partner or a limited partner. In addition, RJ Bank may have a variable interest in LLCs involved in foreclosure or obtaining deeds in lieu of foreclosure, as well as the disposal of the collateral associated with impaired syndicated loans. As discussed in Note 2, we have determined that we are not the primary beneficiary of these VIEs. Accordingly, we do not consolidate these partnerships or LLCs. The carrying value of our investment in these partnerships or LLCs represents our risk of loss. | ||||||||||||||||||||||||
Aggregate assets, liabilities and risk of loss | ||||||||||||||||||||||||
The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but concluded we are not the primary beneficiary, are provided in the table below. | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Aggregate | Aggregate | Our risk | Aggregate | Aggregate | Our risk | |||||||||||||||||||
assets | liabilities | of loss | assets | liabilities | of loss | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
LIHTC Funds | $ | 2,532,457 | $ | 762,346 | $ | 14,387 | $ | 2,198,049 | $ | 844,597 | $ | 22,501 | ||||||||||||
NMTC Funds | 140,499 | 278 | 13 | 140,680 | 209 | 13 | ||||||||||||||||||
Other Real Estate Limited Partnerships and LLCs | 30,240 | 35,512 | 212 | 31,107 | 35,512 | 1,145 | ||||||||||||||||||
Total | $ | 2,703,196 | $ | 798,136 | $ | 14,612 | $ | 2,369,836 | $ | 880,318 | $ | 23,659 | ||||||||||||
VIEs where we hold a variable interest but we are not required to consolidate | ||||||||||||||||||||||||
The aggregate assets, liabilities, and our exposure to loss from Managed Funds in which we hold a variable interest are provided in the table below: | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Aggregate | Aggregate | Our risk | Aggregate | Aggregate | Our risk | |||||||||||||||||||
assets | liabilities | of loss | assets | liabilities | of loss | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Managed Funds | $ | 56,321 | $ | 1,415 | $ | 202 | $ | 9,700 | $ | 1,689 | $ | 296 | ||||||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
PROPERTY AND EQUIPMENT | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land | $ | 20,104 | $ | 19,754 | ||||
Construction in process | 707 | 6,782 | ||||||
Software | 131,115 | 117,604 | ||||||
Buildings, leasehold and land improvements | 235,239 | 204,593 | ||||||
Furniture, fixtures, and equipment | 200,055 | 182,168 | ||||||
587,220 | 530,901 | |||||||
Less: Accumulated depreciation and amortization | (342,804 | ) | (299,706 | ) | ||||
Total property and equipment, net | $ | 244,416 | $ | 231,195 | ||||
GOODWILL_AND_IDENTIFIABLE_INTA
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill and Indentifiable Intangible Assets | ' | |||||||||||||||||||
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | ||||||||||||||||||||
The following are our goodwill and net identifiable intangible asset balances as of the dates indicated: | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Goodwill | $ | 295,486 | $ | 300,111 | ||||||||||||||||
Identifiable intangible assets, net | 65,978 | 61,135 | ||||||||||||||||||
Total goodwill and identifiable intangible assets, net | $ | 361,464 | $ | 361,246 | ||||||||||||||||
Goodwill | ||||||||||||||||||||
Our goodwill results from our fiscal year 1999 acquisition of Roney & Co. (now part of RJ&A), our fiscal year 2001 acquisition of Goepel McDermid, Inc. (now RJ Ltd.), our April 1, 2011 acquisition of Howe Barnes, our April 4, 2011 acquisition of a controlling interest in RJES (as discussed more fully below, this goodwill was determined to be impaired in fiscal year 2013), and our April 2, 2012 acquisition of Morgan Keegan (see Note 3 for additional information regarding this acquisition). | ||||||||||||||||||||
The following summarizes our goodwill by segment, along with the balance and activity for the years indicated: | ||||||||||||||||||||
Segment | ||||||||||||||||||||
Private client group | Capital markets | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Goodwill at September 30, 2011 | $ | 48,097 | $ | 23,827 | $ | 71,924 | ||||||||||||||
Additions (1) | 125,220 | 102,967 | 228,187 | |||||||||||||||||
Impairment losses | — | — | — | |||||||||||||||||
Goodwill at September 30, 2012 | $ | 173,317 | $ | 126,794 | $ | 300,111 | ||||||||||||||
Adjustments to prior year additions (2) | 1,267 | 1,041 | 2,308 | |||||||||||||||||
Impairment losses (3) | — | (6,933 | ) | (6,933 | ) | |||||||||||||||
Goodwill at September 30, 2013 | $ | 174,584 | $ | 120,902 | $ | 295,486 | ||||||||||||||
-1 | Additions are directly attributable to the acquisition of Morgan Keegan (see Notes 1 and 3 for additional information). | |||||||||||||||||||
-2 | The goodwill adjustment arose during the quarter ended December 31, 2012 from a change in a tax election pertaining to whether assets acquired and liabilities assumed are written-up to fair value for tax purposes. This election is made on an entity-by-entity basis, and during the period indicated, our assumption regarding whether we would make such election changed for one of the Morgan Keegan entities we acquired. The offsetting balance associated with this adjustment to goodwill was the net deferred tax asset. | |||||||||||||||||||
-3 | The impairment expense in the year ended September 30, 2013 is associated with the RJES reporting unit. We concluded the goodwill associated with this reporting unit to be completely impaired during the quarter ended March 31, 2013. Since we did not own 100% of RJES as of the goodwill impairment testing date, for the year ended September 30, 2013 the effect of this impairment expense on the pre-tax income attributable to Raymond James Financial, Inc. is approximately $4.6 million and the portion of the impairment expense attributable to the noncontrolling interests is approximately $2.3 million. | |||||||||||||||||||
Goodwill is subject to an evaluation of potential impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. We performed our annual goodwill impairment testing as of December 31, 2012. We elected to not exercise the option to perform a qualitative assessment, but instead to perform a quantitative assessment of the equity value of each reporting unit that includes an allocation of goodwill. In our determination of the reporting unit fair value of equity, we used a combination of the income approach and the market approach. Under the income approach, we used discounted cash flow models applied to each respective reporting unit. Under the market approach, we calculated an estimated fair value based on a combination of multiples of earnings of guideline companies in the brokerage and capital markets industry that are publicly traded on organized exchanges, and the book value of comparable transactions. The estimated fair value of the equity of the reporting unit resulting from each of these valuation approaches was dependent upon the estimates of future business unit revenues and costs, such estimates were subject to critical assumptions regarding the nature and health of financial markets in future years as well as the discount rate to apply to the projected future cash flows. In estimating future cash flows, a balance sheet as of the test date and a statement of operations for the last twelve months of activity for each reporting unit (or for the nine month period since the Closing Date for Morgan Keegan reporting units) were compiled. Future balance sheets and statements of operations were then projected, and estimated future cash flows were determined by the combination of these projections. The cash flows were discounted at the reporting units estimated cost of equity which was derived through application of the capital asset pricing model. The valuation result from the market approach was dependent upon the selection of the comparable guideline companies and transactions and the earnings multiple applied to each respective reporting units’ projected earnings. Finally, significant management judgment was applied in determining the weight assigned to the outcome of the market approach and the income approach, which resulted in one single estimate of the fair value of the equity of the reporting unit. | ||||||||||||||||||||
The following summarizes certain key assumptions utilized in our quantitative analysis as of December 31, 2012: | ||||||||||||||||||||
Key assumptions | ||||||||||||||||||||
Weight assigned to the outcome of: | ||||||||||||||||||||
Segment | Reporting unit | Goodwill as of the impairment testing date (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: | MK & Co. - PCG | $ | 126,486 | 14 | % | 0.5x/10.0x | 50 | % | 50 | % | ||||||||||
RJ&A - PCG | 31,954 | 13 | % | 0.5x/13.5x | 50 | % | 50 | % | ||||||||||||
RJ Ltd. - PCG | 16,144 | 18 | % | 1.0x/12.0x | 50 | % | 50 | % | ||||||||||||
$ | 174,584 | |||||||||||||||||||
Capital markets: | RJ&A - fixed income | $ | 77,325 | 14 | % | 1.0x/9.0x | 50 | % | 50 | % | ||||||||||
RJ Ltd. - equity capital markets | 16,893 | 20 | % | 1.1x/11.0x | 50 | % | 50 | % | ||||||||||||
MK & Co. - fixed income | 13,646 | 16 | % | 0.9x/8.0x | 50 | % | 50 | % | ||||||||||||
RJ&A - equity capital markets | 13,038 | 15 | % | 0.3x/7.0x | 50 | % | 50 | % | ||||||||||||
120,902 | ||||||||||||||||||||
Total | $ | 295,486 | ||||||||||||||||||
The assumptions and estimates utilized in determining the fair value of reporting unit equity are sensitive to changes, including, but not limited to, a decline in overall market conditions, adverse business trends and changes in regulations. | ||||||||||||||||||||
Based upon the outcome of our quantitative assessments as of December 31, 2012, we concluded that the goodwill associated with RJES, a joint venture based in Paris, France that we hold a controlling interest in, was completely impaired. The impairment expense recorded in the year ended September 30, 2013 of $6.9 million is included in other expense on our Consolidated Statements of Income and Comprehensive Income. Since we did not own 100% of RJES as of the annual testing date, our share of this impairment expense after consideration of the noncontrolling interests amounts to $4.6 million. RJES is an entity that provides research coverage on European corporations as well as having sales and trading operations. The decline in value of RJES is primarily due to the continuing economic slowdown experienced in Europe which has had a negative impact on the financial services entities operating therein, as well as certain management decisions that were made during the quarter ended March 31, 2013 which impact RJES’ operating plans on a going forward basis. In April 2013, we purchased all of the outstanding equity in RJES that was held by others, thus we now have sole control over RJES. | ||||||||||||||||||||
There was no goodwill impairment in any other reporting unit. | ||||||||||||||||||||
In mid-February 2013, the client accounts and financial advisors of MK & Co. were transferred to RJ&A pursuant to our Morgan Keegan acquisition integration strategies. As a result, certain RJ&A and MK & Co. reporting units which have an allocation of both private client group as well as capital markets goodwill, were combined. We assessed whether these transfers, which occurred after our annual goodwill impairment testing date, could change our conclusions regarding no impairment of goodwill in the reporting units effected by the transfers. Based upon our qualitative analysis related to those reporting units, we concluded that it was more likely than not that the fair value of the combined reporting units equity exceeds the combined reporting units’ carrying value including goodwill after the effect of such transfers. | ||||||||||||||||||||
The change in our reportable segments, which was effective as of September 30, 2013 (see Notes 1 and 28 for additional information), did not cause us to update the annual impairment testing we performed as the reporting units which were impacted by this change do not have an allocation of goodwill. | ||||||||||||||||||||
No other events have occurred since December 31, 2012 that would cause us to update the annual impairment testing we performed as of that date. | ||||||||||||||||||||
Identifiable intangible assets, net | ||||||||||||||||||||
The following summarizes our identifiable intangible asset balances by segment, net of accumulated amortization, and activity for the years indicated: | ||||||||||||||||||||
Segment | ||||||||||||||||||||
Private client group | Capital markets | Asset management | RJ Bank | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net identifiable intangible assets as of September 30, 2010 | $ | 397 | $ | 2,019 | $ | — | $ | — | $ | 2,416 | ||||||||||
Additions | — | — | — | — | — | |||||||||||||||
Amortization expense | (187 | ) | (1,186 | ) | — | — | (1,373 | ) | ||||||||||||
Impairment losses | — | — | — | — | — | |||||||||||||||
Net identifiable intangible assets as of September 30, 2011 | $ | 210 | $ | 833 | $ | — | $ | — | $ | 1,043 | ||||||||||
Additions (1) | 10,000 | 55,000 | — | — | 65,000 | |||||||||||||||
Amortization expense | (381 | ) | (4,527 | ) | — | — | (4,908 | ) | ||||||||||||
Impairment losses | — | — | — | — | — | |||||||||||||||
Net identifiable intangible assets as of September 30, 2012 | $ | 9,829 | $ | 51,306 | $ | — | $ | — | $ | 61,135 | ||||||||||
Additions | — | — | 13,329 | (2) | 1,085 | (3) | 14,414 | |||||||||||||
Amortization expense | (638 | ) | (7,832 | ) | (1,000 | ) | (101 | ) | (9,571 | ) | ||||||||||
Impairment losses | — | — | — | — | — | |||||||||||||||
Net identifiable intangible assets as of September 30, 2013 | $ | 9,191 | $ | 43,474 | $ | 12,329 | $ | 984 | $ | 65,978 | ||||||||||
-1 | The additions are directly attributable to the identified intangible assets associated with the Morgan Keegan acquisition, see Note 3 for further information regarding the acquisition. | |||||||||||||||||||
-2 | The additions are directly attributable to the customer list asset associated with our first quarter fiscal year 2013 acquisition of a 45% interest in ClariVest (see Note 3 for additional information). Since we are consolidating ClariVest, the amount represents the entire customer relationship intangible asset associated with the acquisition transaction; the amount shown is unadjusted by the 55% share of ClariVest attributable to others. The estimated useful life associated with this addition is approximately 10 years. | |||||||||||||||||||
-3 | The additions are the result of mortgage servicing rights held by RJ Bank. The estimated useful life associated with this addition is approximately 10 years. | |||||||||||||||||||
Identifiable intangible assets by type are presented below: | ||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Gross carrying value | Accumulated amortization | Gross carrying value | Accumulated amortization | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Customer relationships | $ | 65,957 | $ | (8,663 | ) | $ | 52,628 | $ | (3,060 | ) | ||||||||||
Trade name | 2,000 | (2,000 | ) | 2,000 | (1,000 | ) | ||||||||||||||
Developed technology | 11,000 | (3,300 | ) | 11,000 | (1,100 | ) | ||||||||||||||
Non-compete agreements | 1,000 | (1,000 | ) | 1,000 | (333 | ) | ||||||||||||||
Mortgage servicing rights | 1,085 | (101 | ) | — | — | |||||||||||||||
Total | $ | 81,042 | $ | (15,064 | ) | $ | 66,628 | $ | (5,493 | ) | ||||||||||
Projected amortization expense associated with the identifiable intangible assets by fiscal year is as follows: | ||||||||||||||||||||
Fiscal year ended September 30, | (in thousands) | |||||||||||||||||||
2014 | $ | 7,517 | ||||||||||||||||||
2015 | 7,427 | |||||||||||||||||||
2016 | 7,251 | |||||||||||||||||||
2017 | 6,144 | |||||||||||||||||||
2018 | 5,037 | |||||||||||||||||||
Thereafter | 32,602 | |||||||||||||||||||
$ | 65,978 | |||||||||||||||||||
BANK_DEPOSITS
BANK DEPOSITS | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Deposits [Abstract] | ' | |||||||||||||||
BANK DEPOSITS | ' | |||||||||||||||
BANK DEPOSITS | ||||||||||||||||
Bank deposits include Negotiable Order of Withdrawal (“NOW”) accounts, demand deposits, savings and money market accounts and certificates of deposit. The following table presents a summary of bank deposits including the weighted-average rate: | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Balance | Weighted-average rate (1) | Balance | Weighted-average rate (1) | |||||||||||||
($ in thousands) | ||||||||||||||||
Bank deposits: | ||||||||||||||||
NOW accounts | $ | 7,003 | 0.01 | % | $ | 4,588 | 0.01 | % | ||||||||
Demand deposits (non-interest-bearing) | 8,555 | — | 44,800 | — | ||||||||||||
Savings and money market accounts | 8,966,439 | 0.02 | % | 8,231,446 | 0.04 | % | ||||||||||
Certificates of deposit | 313,374 | 1.96 | % | 318,879 | 2.13 | % | ||||||||||
Total bank deposits(2) | $ | 9,295,371 | 0.09 | % | $ | 8,599,713 | 0.12 | % | ||||||||
-1 | Weighted-average rate calculation is based on the actual deposit balances at September 30, 2013 and 2012, respectively. | |||||||||||||||
-2 | Bank deposits exclude affiliate deposits of approximately $6 million and $1 million at September 30, 2013 and 2012, respectively. | |||||||||||||||
RJ Bank’s savings and money market accounts in the table above consist primarily of deposits that are cash balances swept from the investment accounts maintained at RJ&A. These balances are held in Federal Deposit Insurance Corporation (“FDIC”) insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”) administered by RJ&A. | ||||||||||||||||
Scheduled maturities of certificates of deposit are as follows: | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Denominations | Denominations | Denominations | Denominations | |||||||||||||
greater than or | less than $100,000 | greater than or | less than $100,000 | |||||||||||||
equal to $100,000 | equal to $100,000 | |||||||||||||||
(in thousands) | ||||||||||||||||
Three months or less | $ | 7,343 | $ | 8,540 | $ | 9,069 | $ | 7,195 | ||||||||
Over three through six months | 5,908 | 6,264 | 4,587 | 6,778 | ||||||||||||
Over six through twelve months | 9,459 | 13,976 | 12,414 | 16,339 | ||||||||||||
Over one through two years | 31,123 | 37,918 | 16,989 | 23,920 | ||||||||||||
Over two through three years | 33,404 | 27,873 | 32,043 | 38,074 | ||||||||||||
Over three through four years | 47,822 | 35,270 | 34,533 | 28,807 | ||||||||||||
Over four through five years | 36,574 | 11,900 | 50,647 | 37,484 | ||||||||||||
Total | $ | 171,633 | $ | 141,741 | $ | 160,282 | $ | 158,597 | ||||||||
Interest expense on deposits is summarized as follows: | ||||||||||||||||
Year ended September 30, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | ||||||||||||||||
Certificates of deposit | $ | 6,239 | $ | 6,501 | $ | 6,228 | ||||||||||
Money market, savings and NOW accounts | 2,793 | 2,983 | 6,315 | |||||||||||||
Total interest expense on deposits | $ | 9,032 | $ | 9,484 | $ | 12,543 | ||||||||||
OTHER_BORROWINGS
OTHER BORROWINGS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
OTHER BORROWINGS [Abstract] | ' | |||||||
OTHER BORROWINGS | ' | |||||||
OTHER BORROWINGS | ||||||||
The following table details the components of other borrowings: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Other borrowings: | ||||||||
Borrowings on secured lines of credit (1) | $ | 84,076 | $ | — | ||||
Borrowings on unsecured lines of credit (2) | — | — | ||||||
Total other borrowings | $ | 84,076 | $ | — | ||||
-1 | Other than a $5 million borrowing outstanding on the New Regions Credit Agreement (as hereinafter defined) as of September 30, 2013, any borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities. | |||||||
On November 14, 2012, a subsidiary of RJF (the “Borrower”) entered into a Revolving Credit Agreement (the “New Regions Credit Agreement”) with Regions Bank, an Alabama banking corporation (the “Lender”). The New Regions Credit Agreement provides for a revolving line of credit from the Lender to the Borrower and is subject to a guarantee in favor of the Lender provided by RJF. The proceeds from any borrowings under the line will be used for working capital and general corporate purposes. The obligations under the New Regions Credit Agreement are secured by, subject to certain exceptions, all of the present and future ARS owned by the Borrower (the “Pledged ARS”). The amount of any borrowing under the New Regions Credit Agreement cannot exceed the lesser of 70% of the value of the Pledged ARS, or $100 million. The maximum amount available to borrow under the New Regions Credit Agreement was $100 million as of September 30, 2013, the outstanding borrowings were $5 million on such date. The New Regions Credit Agreement bears interest at a variable rate which is 2.75% in excess of LIBOR. The New Regions Credit Agreement expires on April 2, 2015. | ||||||||
Immediately preceding the execution of the New Regions Credit Agreement, all outstanding balances on the credit agreement which had been entered into with Regions on April 2, 2012 as a result of the Morgan Keegan acquisition (the “Initial Regions Credit Agreement”) were paid to the Lender by the Borrowers and such agreement was terminated. See Note 17 for further discussion. | ||||||||
-2 | Any borrowings on unsecured lines of credit are day-to-day and are generally utilized for cash management purposes. | |||||||
The interest rates for all of our U.S. and Canadian secured and unsecured financing facilities are variable and are based on the Fed Funds rate, LIBOR, or Canadian prime rate, as applicable. For the fiscal year ended September 30, 2013, interest rates on the U.S. facilities which were utilized during the year ranged from 0.21% to 2.25% (on a 360 days per year basis), and the interest rate on the Canadian facility was 2.25% (on a 360 days per year basis) when utilized from time-to-time throughout the year. | ||||||||
RJ Bank had no advances outstanding from the FHLB as of either September 30, 2013 or 2012. | ||||||||
As of September 30, 2013, there were other collateralized financings outstanding in the amount of $301 million. As of September 30, 2012, there were other collateralized financings outstanding in the amount of $348 million. These other collateralized financings are included in securities sold under agreements to repurchase on the Consolidated Statements of Financial Condition. These financings are collateralized by non-customer, RJ&A-owned securities. |
LOANS_PAYABLE_OF_CONSOLIDATED_
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES [Abstract] | ' | |||||||
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES | ' | |||||||
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES | ||||||||
Certain of the VIEs that we consolidate have borrowings which are comprised of non-recourse loans. These loans have imputed interest rates ranging from 5.17% to 6.38%. Payments on these loans are made semi-annually by the borrowing VIE directly to the third party lender. These loans mature on dates ranging from January 2, 2015 through January 2, 2019. We are not contingently obligated under any of these loans. See Note 11 for additional information regarding the entities determined to be VIEs, and which of those entities we consolidate. | ||||||||
VIEs’ loans payable are presented below: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Current portion of loans payable | $ | 19,061 | $ | 18,775 | ||||
Long-term portion of loans payable | 43,877 | 62,938 | ||||||
Total loans payable | $ | 62,938 | $ | 81,713 | ||||
The principal amount of the VIEs’ borrowing, based on their contractual terms, mature as follows: | ||||||||
Fiscal year ended September 30, | (in thousands) | |||||||
2014 | $ | 19,061 | ||||||
2015 | 17,949 | |||||||
2016 | 13,331 | |||||||
2017 | 8,240 | |||||||
2018 | 3,668 | |||||||
Thereafter | 689 | |||||||
Total | $ | 62,938 | ||||||
CORPORATE_DEBT
CORPORATE DEBT | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
CORPORATE DEBT | ' | |||||||
CORPORATE DEBT | ||||||||
The following summarizes our corporate debt: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Mortgage notes payable (1) | $ | 45,662 | $ | 49,309 | ||||
4.25% senior notes, due 2016, net of unamortized discount of $255 thousand and $355 thousand at September 30, 2013 and 2012, respectively (2) | 249,745 | 249,645 | ||||||
8.60% senior notes, due 2019, net of unamortized discount of $30 thousand and $35 thousand at September 30, 2013 and 2012, respectively (3) | 299,970 | 299,965 | ||||||
5.625% senior notes, due 2024, net of unamortized discount of $869 thousand and $952 thousand at September 30, 2013 and 2012, respectively (4) | 249,131 | 249,048 | ||||||
6.90% senior notes, due 2042 (5) | 350,000 | 350,000 | ||||||
Other borrowings from banks (6) | — | 128,256 | ||||||
RJES term loan(7) | — | 2,870 | ||||||
Total corporate debt | $ | 1,194,508 | $ | 1,329,093 | ||||
-1 | Mortgage notes payable pertain to mortgage loans on our headquarters office complex. These mortgage loans are secured by land, buildings, and improvements with a net book value of $53.5 million at September 30, 2013. These mortgage loans bear interest at 5.7% with repayment terms of monthly interest and principal debt service and have a January 2023 maturity. | |||||||
-2 | In April 2011, we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 4.25% senior notes due April 2016. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 30 basis points, plus accrued and unpaid interest thereon to the redemption date. | |||||||
-3 | In August 2009, we sold in a registered underwritten public offering, $300 million in aggregate principal amount of 8.60% senior notes due August 2019. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points, plus accrued and unpaid interest thereon to the redemption date. | |||||||
-4 | In March 2012, we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 5.625% senior notes due April 2024. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points, plus accrued and unpaid interest thereon to the redemption date. | |||||||
-5 | In March 2012, we sold in a registered underwritten public offering, $350 million in aggregate principal amount of 6.90% senior notes due March 2042. Interest on these senior notes is payable quarterly in arrears. On or after March 15, 2017, we may redeem some or all of the senior notes at any time at the redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued interest thereon to the redemption date. | |||||||
-6 | The outstanding balance as of September 30, 2012, was comprised of the Initial Regions Credit Agreement. On November 14, 2012, the outstanding balance was repaid, the Initial Regions Credit Agreement was terminated and the New Regions Credit Agreement was executed (see Note 15 for additional information on the New Regions Credit Agreement secured line of credit). | |||||||
-7 | The RJES term loan was paid in full in June 2013. | |||||||
Our corporate debt matures as follows, based upon its contractual terms: | ||||||||
Fiscal year ended September 30, | (in thousands) | |||||||
2014 | $ | 3,530 | ||||||
2015 | 4,067 | |||||||
2016 | 254,050 | |||||||
2017 | 4,556 | |||||||
2018 | 4,823 | |||||||
Thereafter | 923,482 | |||||||
Total | $ | 1,194,508 | ||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||
The significant accounting policies governing our derivative financial instruments, including our methodologies for determining fair value, are described in Note 2. | ||||||||||||||||||||
Derivatives arising from our fixed income business operations | ||||||||||||||||||||
In our pre-Morgan Keegan acquisition fixed income business, we entered into interest rate swaps and futures contracts either as part of our fixed income business to facilitate customer transactions, to hedge a portion of our trading inventory, or to a limited extent for our own account. We have continued to conduct this business in a substantially similar fashion since the Closing Date of the Morgan Keegan acquisition. The majority of these derivative positions are executed in the over-the-counter market with financial institutions. We hereinafter refer to the derivative instruments arising from these operations as our over-the-counter derivatives operations (or “OTC Derivatives Operations”). | ||||||||||||||||||||
Cash flows related to the interest rate contracts arising from the OTC Derivative Operations, are included as operating activities (the “trading instruments, net” line) on the Consolidated Statements of Cash Flows. | ||||||||||||||||||||
Matched book derivatives arising from Morgan Keegan’s legacy business operations | ||||||||||||||||||||
Prior to the Closing Date, Morgan Keegan facilitated derivative transactions through non-broker-dealer subsidiaries previously defined herein as RJSS. We have continued to conduct this business in a substantially similar fashion since the Closing Date. In these operations, we do not use derivative instruments for trading or hedging purposes. RJSS enters into derivative transactions (primarily interest rate swaps) with customers. For every derivative transaction RJSS enters into with a customer, RJSS enters into an offsetting transaction with terms that mirror the customer transaction with a credit support provider who is a third party financial institution. Due to this “pass-through” transaction structure, RJSS has completely mitigated the market and credit risk related to these derivative contracts and therefore, the ultimate credit and market risk resides with the third party financial institution. RJSS only has credit risk related to its uncollected derivative transaction fee revenues. As a result of the structure of these transactions, we refer to the derivative contracts we enter into as a result of these operations as our offsetting “matched book” derivative operations (the “Offsetting Matched Book Derivatives Operations”). | ||||||||||||||||||||
Any collateral required to be exchanged under the contracts arising from the Offsetting Matched Book Derivatives Operations is administered directly by the customer and the third party financial institution. RJSS does not hold any collateral, or administer any collateral transactions, related to these instruments. We record the value of each derivative position arising from the Offsetting Matched Book Derivatives Operations at fair value, as either an asset or offsetting liability, presented as “derivative instruments associated with offsetting matched book positions,” as applicable, on our Consolidated Statements of Financial Condition. | ||||||||||||||||||||
The receivable for uncollected derivative transaction fee revenues of RJSS is $8 million and $9 million at September 30, 2013 and 2012, respectively, and is included in other receivables on our Consolidated Statements of Financial Condition. | ||||||||||||||||||||
None of the derivatives described above arising from either our OTC Derivatives Operations or our Offsetting Matched Book Derivatives Operations are designated as fair value or cash flow hedges. | ||||||||||||||||||||
Derivatives arising from RJ Bank’s business operations | ||||||||||||||||||||
A Canadian subsidiary of RJ Bank conducts operations directly related to RJ Bank’s Canadian corporate loan portfolio. U.S. subsidiaries of RJ Bank utilize forward foreign exchange contracts to hedge RJ Bank’s foreign currency exposure due to its non-U.S. dollar net investment. Cash flows related to these derivative contracts are classified within operating activities in the Consolidated Statements of Cash Flows. | ||||||||||||||||||||
Description of the collateral we hold related to derivative contracts | ||||||||||||||||||||
Where permitted, we elect to net-by-counterparty certain derivative contracts entered into in our OTC Derivatives Operations and RJ Bank’s U.S. subsidiaries. Certain of these contracts contain a legally enforceable master netting arrangement that allows for netting of all derivative transactions with each counterparty and, therefore, the fair value of those derivative contracts are netted by counterparty in the Consolidated Statements of Financial Condition. The credit support annex related to the interest rate swaps and certain forward foreign exchange contracts allow parties to the master agreement to mitigate their credit risk by requiring the party which is out of the money to post collateral. We accept collateral in the form of cash or other marketable securities. As we elect to net-by-counterparty the fair value of derivative contracts arising from our OTC Derivatives Operations, we also net-by-counterparty any cash collateral exchanged as part of those derivative agreements. | ||||||||||||||||||||
This cash collateral is recorded net-by-counterparty at the related fair value. The cash collateral included in the net fair value of all open derivative asset positions arising from our OTC Derivatives Operations aggregates to a net liability of $13 million at September 30, 2013 and $18 million at September 30, 2012. The cash collateral included in the net fair value of all open derivative liability positions from our OTC Derivatives Operations aggregates to a net asset of $22 million and $50 million at September 30, 2013 and September 30, 2012, respectively. Our maximum loss exposure under the interest rate swap contracts arising from our OTC Derivatives Operations at September 30, 2013 is $29 million. | ||||||||||||||||||||
RJ Bank provides to counterparties for the benefit of its U.S. subsidiaries, a guarantee of payment in the event of the subsidiaries’ default under forward foreign exchange contracts. Due to this RJ Bank guarantee and the short-term nature of these derivatives, RJ Bank’s U.S. subsidiaries are not required to post collateral and do not receive collateral with respect to certain derivative contracts with the respective counterparties. RJ Bank’s maximum loss exposure under the forward foreign exchange contracts at September 30, 2013 is $700 thousand. | ||||||||||||||||||||
Derivative balances included in our financial statements | ||||||||||||||||||||
See the table below for the notional and fair value amounts of both the asset and liability derivatives. | ||||||||||||||||||||
Asset derivatives | ||||||||||||||||||||
September 30, 2013 | 30-Sep-12 | |||||||||||||||||||
Balance sheet | Notional | Fair | Balance sheet | Notional | Fair | |||||||||||||||
location | amount | value(1) | location | amount | value(1) | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate contracts(2) | Trading instruments | $ | 2,407,387 | $ | 89,633 | Trading instruments | $ | 2,376,049 | $ | 144,259 | ||||||||||
Interest rate contracts(3) | Derivative instruments associated with offsetting matched book positions | $ | 1,944,408 | $ | 250,341 | Derivative instruments associated with offsetting matched book positions | $ | 2,110,984 | $ | 458,265 | ||||||||||
Liability derivatives | ||||||||||||||||||||
September 30, 2013 | 30-Sep-12 | |||||||||||||||||||
Balance sheet | Notional | Fair | Balance sheet | Notional | Fair | |||||||||||||||
location | amount | value(1) | location | amount | value(1) | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Forward foreign exchange contracts | Trade and other payables | $ | 655,828 | $ | 637 | Trade and other payables | $ | 569,790 | $ | 1,296 | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate contracts(2) | Trading instruments sold | $ | 2,420,531 | $ | 74,920 | Trading instruments sold | $ | 2,288,450 | $ | 128,081 | ||||||||||
Interest rate contracts(3) | Derivative instruments associated with offsetting matched book positions | $ | 1,944,408 | $ | 250,341 | Derivative instruments associated with offsetting matched book positions | $ | 2,110,984 | $ | 458,265 | ||||||||||
Forward foreign exchange contracts | Trade and other payables | $ | 79,588 | $ | 77 | Trade and other payables | $ | 44,225 | $ | 74 | ||||||||||
-1 | The fair value in this table is presented on a gross basis before netting of cash collateral and before any netting by counterparty according to our legally enforceable master netting arrangements. The fair value in the Consolidated Statements of Financial Condition is presented net. | |||||||||||||||||||
-2 | These contracts arise from our OTC Derivatives Operations. | |||||||||||||||||||
-3 | These contracts arise from our Offsetting Matched Book Derivatives Operations. | |||||||||||||||||||
Gains recognized on forward foreign exchange derivatives in AOCI totaled $14 million, net of income taxes, for the year ended September 30, 2013. There was no hedge ineffectiveness and no components of derivative gains or losses were excluded from the assessment of hedge effectiveness for the year ended September 30, 2013. | ||||||||||||||||||||
Losses recognized on forward foreign exchange derivatives in AOCI totaled $10 million, net of income taxes, for the year ended September 30, 2012. There was no hedge ineffectiveness and no components of derivative gains or losses were excluded from the assessment of hedge effectiveness for the year ended September 30, 2012. | ||||||||||||||||||||
We did not enter into any forward foreign exchange derivative contracts during the year ended September 30, 2011. | ||||||||||||||||||||
See the table below for the impact of the derivatives not designated as hedging instruments on the Consolidated Statements of Income and Comprehensive Income: | ||||||||||||||||||||
Amount of gain (loss) on derivatives recognized in income | ||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||
Location of gain (loss) | 2013 | 2012 | 2011 | |||||||||||||||||
recognized on derivatives in the | ||||||||||||||||||||
Consolidated Statements of | ||||||||||||||||||||
Income and Comprehensive Income | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate contracts(1) | Net trading profits | $ | 993 | $ | (116 | ) | $ | 750 | ||||||||||||
Interest rate contracts (2) | Other revenues | $ | 225 | $ | 835 | $ | — | |||||||||||||
Forward foreign exchange contracts | Other revenues | $ | 1,577 | $ | (591 | ) | $ | — | ||||||||||||
-1 | These contracts arise from our OTC Derivatives Operations. | |||||||||||||||||||
-2 | These contracts arise from our Offsetting Matched Book Derivatives Operations. | |||||||||||||||||||
Risks associated with, and our risk mitigation related to, our derivative contracts | ||||||||||||||||||||
We are exposed to credit losses in the event of nonperformance by the counterparties to forward foreign exchange derivative agreements as well as the interest rate contracts associated with our OTC Derivatives Operations. Where we are subject to credit exposure, we perform a credit evaluation of counterparties prior to entering into derivative transactions and we monitor their credit standings. Currently, we anticipate that all of the counterparties will be able to fully satisfy their obligations under those agreements. For our OTC Derivatives Operations, we may require collateral from counterparties in the form of cash deposits or other marketable securities to support certain of these obligations as established by the credit threshold specified by the agreement and/or as a result of monitoring the credit standing of the counterparties. | ||||||||||||||||||||
We are exposed to interest rate risk related to the interest rate derivative agreements arising from our OTC Derivatives Operations. We are also exposed to foreign exchange risk related to our forward foreign exchange derivative agreements. We monitor exposure in our derivative agreements daily based on established limits with respect to a number of factors, including interest rate, foreign exchange spot and forward rates, spread, ratio, basis and volatility risks. These exposures are monitored both on a total portfolio basis and separately for each agreement for selected maturity periods. | ||||||||||||||||||||
Certain of the derivative instruments arising from our OTC Derivatives Operations and from RJ Bank’s forward foreign exchange contracts contain provisions that require our debt to maintain an investment grade rating from one or more of the major credit rating agencies. If our debt were to fall below investment grade, we would be in breach of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing overnight collateralization on our derivative instruments in liability positions. The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position at September 30, 2013 is $5 million, for which we have posted collateral of $4.2 million in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered on September 30, 2013, we would have been required to post an additional $800 thousand of collateral to our counterparties. | ||||||||||||||||||||
Our only exposure to credit risk in the Offsetting Matched Book Derivatives Operations is related to our uncollected derivative transaction fee revenues. We are not exposed to market risk as it relates to these derivative contracts due to the “pass-through” transaction structure more fully described above. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
INCOME TAXES | ' | ||||||||||||||||||||
INCOME TAXES | |||||||||||||||||||||
Total income taxes are allocated as follows: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Recorded in: | |||||||||||||||||||||
Income including noncontrolling interests | $ | 197,033 | $ | 175,656 | $ | 182,894 | |||||||||||||||
Equity, for compensation expense for tax purposes (in excess of) less than amounts recognized for financial reporting purposes | (2,590 | ) | (2,613 | ) | 374 | ||||||||||||||||
Equity, for cumulative currency translation adjustments | 6,861 | (5,741 | ) | — | |||||||||||||||||
Equity, for available for sale securities | 8,986 | 7,611 | 1,497 | ||||||||||||||||||
Total | $ | 210,290 | $ | 174,913 | $ | 184,765 | |||||||||||||||
Our provision (benefit) for income taxes consists of the following: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | 182,862 | $ | 133,890 | $ | 148,266 | |||||||||||||||
State and local | 37,491 | 29,141 | 29,387 | ||||||||||||||||||
Foreign | 8,469 | 10,581 | 11,249 | ||||||||||||||||||
228,822 | 173,612 | 188,902 | |||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | (25,673 | ) | 3,939 | (6,279 | ) | ||||||||||||||||
State and local | (5,023 | ) | 372 | (3,887 | ) | ||||||||||||||||
Foreign | (1,093 | ) | (2,267 | ) | 4,158 | ||||||||||||||||
(31,789 | ) | 2,044 | (6,008 | ) | |||||||||||||||||
Total provision for income tax | $ | 197,033 | $ | 175,656 | $ | 182,894 | |||||||||||||||
Our income tax expense differs from the amount computed by applying the statutory federal income tax rate of 35% due to the following: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Provision calculated at statutory rate | $ | 197,466 | 35 | % | $ | 165,034 | 35 | % | $ | 161,436 | 35 | % | |||||||||
State income tax, net of federal benefit | 21,662 | 3.8 | % | 19,566 | 4.1 | % | 16,575 | 3.6 | % | ||||||||||||
Tax-exempt interest income | (2,074 | ) | (0.4 | )% | (2,291 | ) | (0.5 | )% | (1,761 | ) | (0.4 | )% | |||||||||
(Income)/loss on company-owned life insurance which is not subject to tax | (7,809 | ) | (1.3 | )% | (8,318 | ) | (1.8 | )% | 1,146 | 0.2 | % | ||||||||||
Business tax credits including low income housing tax credits | (1,056 | ) | (0.2 | )% | (1,830 | ) | (0.4 | )% | (3,443 | ) | (0.7 | )% | |||||||||
Business expenses which are not tax-deductible | 4,920 | 0.9 | % | 3,752 | 0.8 | % | 3,072 | 0.7 | % | ||||||||||||
Incentive stock option expenses which are not tax-deductible | 2,471 | 0.4 | % | 2,843 | 0.6 | % | 2,633 | 0.6 | % | ||||||||||||
Reversal of deferred taxes provided on foreign earnings (1) | (10,676 | ) | (1.9 | )% | — | — | — | — | |||||||||||||
Other, net | (7,871 | ) | (1.4 | )% | (3,100 | ) | (0.7 | )% | 3,236 | 0.7 | % | ||||||||||
Total provision for income tax | $ | 197,033 | 34.9 | % | $ | 175,656 | 37.3 | % | $ | 182,894 | 39.7 | % | |||||||||
(1) We have historically provided deferred taxes for the presumed repatriation to the U.S. of earnings from certain foreign subsidiaries. Management changed its assertion related to the earnings of one of our Canadian subsidiaries resulting in a decrease in deferred tax liabilities related to undistributed foreign earnings. | |||||||||||||||||||||
U.S. and foreign components of income excluding noncontrolling interests and before provision for income taxes are as follows: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
U.S. | $ | 550,113 | $ | 456,175 | $ | 421,662 | |||||||||||||||
Foreign | 14,074 | 15,350 | 39,585 | ||||||||||||||||||
Income excluding noncontrolling interest and before provision for income taxes | $ | 564,187 | $ | 471,525 | $ | 461,247 | |||||||||||||||
The cumulative effects of temporary differences that give rise to significant portions of the deferred tax asset (liability) items are as follows: | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Deferred compensation | $ | 128,801 | $ | 87,666 | |||||||||||||||||
Allowances for loan losses and reserves for unfunded commitments | 55,659 | 60,779 | |||||||||||||||||||
Unrealized loss associated with certain available for sale securities | 15,437 | 16,324 | |||||||||||||||||||
Accrued expenses | 28,868 | 18,759 | |||||||||||||||||||
Acquisition expense | 3,618 | 3,802 | |||||||||||||||||||
Net operating loss and credit carryforwards | 1,336 | 4,390 | |||||||||||||||||||
Other | 14,572 | 21,637 | |||||||||||||||||||
Total gross deferred tax assets | 248,291 | 213,357 | |||||||||||||||||||
Less: valuation allowance | (9 | ) | (9 | ) | |||||||||||||||||
Total deferred tax assets | 248,282 | 213,348 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Partnership investments | (24,245 | ) | (11,579 | ) | |||||||||||||||||
Goodwill and other intangibles | (12,469 | ) | (6,467 | ) | |||||||||||||||||
Undistributed earnings of foreign subsidiaries | (9,344 | ) | (19,373 | ) | |||||||||||||||||
Fixed assets | (5,082 | ) | (2,275 | ) | |||||||||||||||||
Leveraged lease | — | (4,668 | ) | ||||||||||||||||||
Other | (1,982 | ) | (799 | ) | |||||||||||||||||
Total deferred tax liabilities | (53,122 | ) | (45,161 | ) | |||||||||||||||||
Net deferred tax assets | $ | 195,160 | $ | 168,187 | |||||||||||||||||
We have a net deferred tax asset at September 30, 2013 and 2012. This asset includes net operating loss and foreign tax credit carryforwards that will expire between 2019 and 2030. A valuation allowance for the fiscal year ended September 30, 2013 has been established for certain state net operating losses due to management’s belief that, based on our historical operating income, projection of future taxable income, scheduled reversal of taxable temporary differences, and implemented tax planning strategies, it is more likely than not that the tax carryforwards will expire unutilized. We believe that the realization of the remaining net deferred tax asset of $195.2 million is more likely than not based on the ability to carry back losses against prior year taxable income and expectations of future taxable income. | |||||||||||||||||||||
We have provided for U.S. deferred income taxes in the amount of $9.3 million on undistributed earnings not considered permanently reinvested in our non-U.S. subsidiaries. To the extent that the cumulative undistributed earnings of non-U.S. subsidiaries are considered to be permanently invested, no deferred U.S. federal income taxes have been provided. As of September 30, 2013, we have approximately $203.4 million of cumulative undistributed earnings attributable to foreign subsidiaries for which no provisions have been recorded for income taxes that could arise upon repatriation. Because the time or manner of repatriation is uncertain, we cannot determine the impact of local taxes, withholding taxes and foreign tax credits associated with the future repatriation of such earnings, and therefore cannot quantify the tax liability that would be payable in the event all such foreign earnings are repatriated. | |||||||||||||||||||||
As of September 30, 2013, the current tax receivable included in other receivables is $25 million, and a current tax payable of $47 million is included in trade and other payables on our Consolidated Statements of Financial Condition. As of September 30, 2012 the current tax receivable included in other receivables is $48.8 million and a current tax payable of $17.5 million is included in trade and other payables on our Consolidated Statements of Financial Condition. | |||||||||||||||||||||
Balances associated with unrecognized tax benefits | |||||||||||||||||||||
We recognize the accrual of interest and penalties related to income tax matters in interest expense and other expense, respectively. During the year ended September 30, 2013, accrued interest expense related to unrecognized tax benefits increased by approximately $1.4 million. During the year ended September 30, 2013, penalty expense related to unrecognized tax benefits increased by approximately $573 thousand. As of September 30, 2013 and 2012, accrued interest and penalties included in the unrecognized tax benefits liability were approximately $5.1 million and $3.2 million, respectively. | |||||||||||||||||||||
The aggregate change in the balances for unrecognized tax benefits including interest and penalties are as follows: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance for unrecognized tax benefits at beginning of year | $ | 12,672 | $ | 4,730 | $ | 4,308 | |||||||||||||||
Increases for tax positions related to the current year | 3,118 | 2,420 | 1,199 | ||||||||||||||||||
Increases for tax positions related to prior years | 4,484 | (1) | 6,559 | (1) | 551 | ||||||||||||||||
Decreases for tax positions related to prior years | (352 | ) | (196 | ) | (44 | ) | |||||||||||||||
Decreases due to lapsed statute of limitations | (1,119 | ) | (841 | ) | (1,284 | ) | |||||||||||||||
Balance for unrecognized tax benefits at end of year | $ | 18,803 | $ | 12,672 | $ | 4,730 | |||||||||||||||
-1 | The increase is due to tax positions taken in previously filed tax returns with certain states. We continue to evaluate these positions and intend to contest the proposed adjustments made by taxing authorities. | ||||||||||||||||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $9.5 million and $6.4 million at September 30, 2013 and 2012, respectively. We anticipate that the unrecognized tax benefits will not change significantly over the next twelve months. | |||||||||||||||||||||
We file U. S. federal income tax returns as well as returns with various state, local and foreign jurisdictions. With few exceptions, we are generally no longer subject to U.S. federal, state and local, or foreign income tax examination by tax authorities for years prior to fiscal year 2013 for federal tax returns, fiscal year 2009 for state and local tax returns and fiscal year 2008 for foreign tax returns. Certain transactions from our fiscal year 2013 are currently being examined under the Internal Revenue Service (“IRS”) Compliance Assurance Program. This program accelerates the examination of key issues in an attempt to resolve them before the tax return is filed. Certain state and local returns are also currently under various stages of audit. Various state audits in process are expected to be completed in fiscal year 2014. |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 12 Months Ended | |||
Sep. 30, 2013 | ||||
COMMITMENTS, CONTINGENCIES AND GUARANTEES [Abstract] | ' | |||
COMMITMENTS, CONTINGENCIES AND GUARANTEES | ' | |||
COMMITMENTS, CONTINGENCIES AND GUARANTEES | ||||
Commitments and contingencies | ||||
In the normal course of business we enter into underwriting commitments. As of September 30, 2013, RJ&A had no open transactions involving such commitments. Transactions involving such commitments of RJ Ltd. that were recorded and open at September 30, 2013, were approximately $28 million in Canadian dollars (“CDN”). | ||||
We utilize client marginable securities to satisfy deposits with clearing organizations. At September 30, 2013, we had client margin securities valued at $189 million pledged with a clearing organization to meet our requirement of $128 million. | ||||
As part of our recruiting efforts, we offer loans to prospective financial advisors and certain key revenue producers primarily for recruiting and/or retention purposes (see Note 2 for a discussion of our accounting policies governing these transactions). These commitments are contingent upon certain events occurring, including, but not limited to, the individual joining us and, in most circumstances, require them to meet certain production requirements. As of September 30, 2013 we had made commitments, to either prospects that have accepted our offer, or recently recruited producers, of approximately $33.3 million that have not yet been funded. | ||||
As of September 30, 2013, RJ Bank had not settled purchases of $76.4 million in syndicated loans. These loan purchases are expected to be settled within 90 days. | ||||
See Note 26 for additional information regarding RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments such as standby letters of credit and loan purchases. | ||||
We have committed a total of $127.1 million, in amounts ranging from $200 thousand to $29.7 million, to 50 different independent venture capital or private equity partnerships. As of September 30, 2013, we have invested $101.2 million of the committed amounts and have received $73.9 million in distributions. We also control the general partner in seven internally sponsored private equity limited partnerships to which we have committed $69.6 million. As of September 30, 2013, we have invested $48.9 million of the committed amounts and have received $39.1 million in distributions. | ||||
RJF has committed to lend to RJTCF, or guarantee obligations in connection with RJTCF’s low-income housing development/rehabilitation and syndication activities, amounts aggregating up to $150 million upon request, subject to certain limitations as well as annual review and renewal. At September 30, 2013, RJTCF has $31.3 million in outstanding cash borrowings and $52.7 million in unfunded commitments outstanding against this aggregate commitment. RJTCF borrows from RJF in order to make investments in, or fund loans or advances to, either partnerships which purchase and develop properties qualifying for tax credits (“Project Partnerships”) or LIHTC Funds. Investments in Project Partnerships are sold to various LIHTC Funds, which have third party investors, and for which RJTCF serves as the managing member or general partner. RJTCF typically sells investments in Project Partnerships to LIHTC Funds within 90 days of their acquisition, and the proceeds from the sales are used to repay RJTCF’s borrowings from RJF. RJTCF may also make short-term loans or advances to Project Partnerships, or to LIHTC Funds. | ||||
A subsidiary of RJ Bank has committed $14.3 million as an investor member in a low-income housing tax credit fund in which a subsidiary of RJTCF is the managing member. As of September 30, 2013, the RJ Bank subsidiary has invested $3.1 million of the committed amount. | ||||
Long-term lease agreements expire at various times through fiscal year 2026. Minimum annual rental payments under such agreements for the succeeding five fiscal years are approximately: $75 million in fiscal year 2014, $69.7 million in fiscal year 2015, $62.8 million in fiscal year 2016, $52.6 million in fiscal year 2017, $40.9 million in fiscal year 2018 and $101.8 million thereafter. Certain leases contain rent holidays, leasehold improvement incentives, renewal options and/or escalation clauses. Rental expense incurred under all leases, including equipment under short-term agreements, aggregated to $90.5 million, $73.9 million and $56.2 million in fiscal years 2013, 2012 and 2011, respectively. | ||||
At September 30, 2013, the approximate market values of collateral received that we can repledge were: | ||||
Sources of collateral | ||||
(in thousands) | ||||
Securities purchased under agreements to resell and other collateralized financings | $ | 725,935 | ||
Securities received in securities borrowed vs. cash transactions | 143,108 | |||
Collateral received for margin loans | 1,440,250 | |||
Securities received as collateral related to derivative contracts | 6,409 | |||
Total | $ | 2,315,702 | ||
Certain collateral was repledged. At September 30, 2013, the approximate market values of this portion of collateral and financial instruments that we own and pledged were: | ||||
Uses of collateral | ||||
and trading securities | ||||
(in thousands) | ||||
Securities sold under agreements to repurchase | $ | 313,548 | ||
Securities delivered in securities loaned vs. cash transactions | 342,096 | |||
Securities pledged as collateral under secured borrowing arrangements | 116,952 | |||
Collateral used for deposits at clearing organizations | 207,468 | |||
Total | $ | 980,064 | ||
As a part of our fixed income public finance operations, RJ&A enters into forward commitments to purchase GNMA MBS. The MBS securities are issued on behalf of various state and local housing finance agencies (“HFA”) and consist of the mortgages originated through their lending programs. RJ&A’s forward GNMA MBS purchase commitment arises at the time of the loan reservation for a borrower in the HFA lending program (these loan reservations fix the terms of the mortgage, including the interest rate and maximum principal amount). The underlying terms of the GNMA MBS purchase, including the price for the MBS security (which is dependent upon the interest rates associated with the underlying mortgages) are also fixed at loan reservation. At September 30, 2013, RJ&A had approximately $199 million principal amount of outstanding forward MBS purchase commitments which are expected to be purchased by RJ&A over the following 90 days. Upon acquisition of the MBS security, RJ&A typically sells such security in open market transactions as part of its fixed income operations. Given that the actual principal amount of the MBS security is not fixed and determinable at the date of RJ&A’s commitment to purchase, these forward MBS purchase commitments do not meet the definition of a derivative instrument. In order to hedge the market interest rate risk to which RJ&A would otherwise be exposed between the date of the commitment and the date of sale of the MBS in the market, RJ&A enters into to be announced (“TBA”) security contracts with investors for generic MBS securities at specific rates and prices to be delivered on settlement dates in the future. These TBA securities are accounted for at fair value and are included in Agency MBS securities in the table of assets and liabilities measured at fair value included in Note 5, and at September 30, 2013 aggregate to a net liability having a fair value of $3 million. The estimated fair value of the purchase commitment at September 30, 2013 is an asset of $3 million, which is included in other receivables on our Consolidated Statements of Financial Condition. | ||||
As a result of the extensive regulation of financial holding companies, banks, broker-dealers and investment advisory entities, RJF and a number of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and self-regulatory organizations. These reviews can result in the imposition of sanctions for regulatory violations, ranging from non-monetary censure to fines and, in serious cases, temporary or permanent suspension from conducting business. In addition, from time to time regulatory agencies and self-regulatory organizations institute investigations into industry practices, which can also result in the imposition of such sanctions. See Note 25 for additional information regarding regulatory capital requirements applicable to RJF and certain of its broker-dealer subsidiaries. | ||||
Guarantees | ||||
RJ Bank provides to its affiliate, Raymond James Capital Services, Inc. (“RJ Cap Services”), on behalf of certain corporate borrowers, a guarantee of payment in the event of the borrower’s default for exposure under interest rate swaps entered into with RJ Cap Services. At September 30, 2013, the exposure under these guarantees is $7.1 million, which was underwritten as part of RJ Bank’s corporate credit relationship with such borrowers. The outstanding interest rate swaps at September 30, 2013 have maturities ranging from August 2014 through May 2019. RJ Bank records an estimated reserve for its credit risk associated with the guarantee of these client swaps, which was insignificant as of September 30, 2013. The estimated total potential exposure under these guarantees is $10.6 million at September 30, 2013. | ||||
RJ Bank guarantees the forward foreign exchange contract obligations of its U.S. subsidiaries. See Note 18 for additional information regarding these derivatives. | ||||
RJF guarantees interest rate swap obligations of RJ Cap Services. See Note 18 for additional information regarding interest rate swaps. | ||||
We have from time to time authorized performance guarantees for the completion of trades with counterparties in Argentina. At September 30, 2013, there were no such outstanding performance guarantees. | ||||
In March, 2008, RJF guaranteed an $8 million letter of credit issued for settlement purposes that was requested by the Capital Markets Board (“CMB”) for a joint venture we were at one time affiliated with in the country of Turkey. While our Turkish joint venture ceased operations in December, 2008, the CMB has not released this letter of credit. The issuing bank has instituted an action seeking payment of its fees on the underlying letter of credit and to confirm that the guarantee remains in effect. | ||||
RJF has guaranteed the Borrower’s performance under the New Regions Credit Agreement. See further discussion of this borrowing in Notes 3, 15 and 17. | ||||
RJF guarantees the existing mortgage debt of RJ&A of approximately $45.7 million. See Notes 15, 16 and 17 for information regarding our financing arrangements. | ||||
RJTCF issues certain guarantees to various third parties related to Project Partnerships whose interests have been sold to one or more of the funds in which RJTCF is the managing member or general partner. In some instances, RJTCF is not the primary guarantor of these obligations which aggregate to a cumulative maximum obligation of approximately $1.7 million as of September 30, 2013. | ||||
RJF has guaranteed RJTCF’s performance to various third parties on certain obligations arising from RJTCF’s sale and/or transfer of units in one of its fund offerings (“Fund 34”). Under such arrangements, RJTCF has provided either: (1) certain specific performance guarantees including a provision whereby in certain circumstances, RJTCF will refund a portion of the investors’ capital contribution, or (2) a guaranteed return on their investment. Under the performance guarantees, the conditions which would result in a payment by RJTCF not being required to be made under the guarantees have been satisfied and neither RJF nor RJTCF have any further obligations under such guarantees. Further, based upon its most recent projections and performance of Fund 34, RJTCF does not anticipate that any future payments will be owed to these third parties under the guarantee of the return on investment. Under the guarantee of returns, should the underlying LIHTC project partnerships held by Fund 34 fail to deliver a certain amount of tax credits and other tax benefits over the next nine years, RJTCF is obligated to provide the investor with a specified return. A $33.7 million financing asset is included in prepaid expenses and other assets (see Note 10 for additional information), and a related $33.7 million liability is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2013. The maximum exposure to loss under this guarantee is the undiscounted future payments due to investors for the return on and of their investment, and approximates $42 million at September 30, 2013. | ||||
Legal matter contingencies | ||||
Pre- Closing Date Morgan Keegan matters (all of which are subject to indemnification by Regions) | ||||
In July 2006, MK & Co. and a former MK & Co. analyst were named as defendants in a lawsuit filed by a Canadian insurance and financial services company, Fairfax Financial Holdings, and its American subsidiary in the Circuit Court of Morris County, New Jersey. Plaintiffs made claims under a civil Racketeer Influenced and Corrupt Organizations (“RICO”) statute, for commercial disparagement, tortious interference with contractual relationships, tortious interference with prospective economic advantage and common law conspiracy. Plaintiffs alleged that defendants engaged in a multi-year conspiracy to publish and disseminate false and defamatory information about plaintiffs to improperly drive down plaintiff’s stock price, so that others could profit from short positions. Plaintiffs alleged that defendants’ actions damaged their reputations and harmed their business relationships. Plaintiffs alleged a number of categories of damages they sustained, including lost insurance business, lost financings and increased financing costs, increased audit fees and directors and officers insurance premiums and lost acquisitions, and have requested monetary damages. On May 11, 2012, the trial court ruled that New York law applied to plaintiff’s RICO claims, therefore the claims were not subject to treble damages. On June 27, 2012, the trial court dismissed plaintiffs’ tortious interference with prospective relations claim, but allowed other claims to go forward. A jury trial was set to begin on September 10, 2012. Prior to its commencement the court dismissed the remaining claims with prejudice. Plaintiffs have appealed the court’s rulings. | ||||
Certain of the Morgan Keegan entities, along with Regions, have been named in class-action lawsuits filed in federal and state courts on behalf of shareholders of Regions and investors who purchased shares of certain mutual funds in the Regions Morgan Keegan Fund complex (the “Regions Funds”). The Regions Funds were formerly managed by Morgan Asset Management (“MAM”), an entity which was at one time a subsidiary of one of the Morgan Keegan affiliates, but an entity which was not part of our Morgan Keegan acquisition (see further information regarding the Morgan Keegan acquisition in Note 3). The complaints contain various allegations, including claims that the Regions Funds and the defendants misrepresented or failed to disclose material facts relating to the activities of the Funds. In August 2013, the United States District Court for the Western District of Tennessee approved the settlement of the class action and the derivative action regarding the closed end funds for $62 million and $6 million, respectively. No class has been certified. Certain of the shareholders in the Funds and other interested parties have entered into arbitration proceedings and individual civil claims, in lieu of participating in the class action lawsuits. | ||||
The SEC and states of Missouri and Texas are investigating alleged securities law violations by MK & Co. in the underwriting and sale of certain municipal bonds. An enforcement action was brought by the Missouri Secretary of State in April 2013, seeking monetary penalties and other relief. In November 2013, the state dismissed this enforcement action and refiled the same claims as a civil action in the Circuit Court for Boone County, Missouri. A civil action was brought by institutional investors of the bonds on March 19, 2012, seeking a return of their investment and unspecified compensatory and punitive damages. A class action was brought on behalf of retail purchasers of the bonds on September 4, 2012, seeking unspecified compensatory and punitive damages. These actions are in the early stages. These matters are subject to the indemnification agreement with Regions. | ||||
Prior to the Closing Date, Morgan Keegan was involved in other litigation arising in the normal course of its business. On all such matters, RJF is subject to indemnification from Regions pursuant to the terms of the stock purchase agreement and summarized below. | ||||
Indemnification from Regions | ||||
As more fully described in Note 3, the terms of the stock purchase agreement governing our acquisition of Morgan Keegan, which closed on April 2, 2012, provide that Regions will indemnify RJF for losses incurred in connection with legal proceedings pending as of the closing date or commenced after the closing date and related to pre-closing matters as well as any cost of defense pertaining thereto. All of the pre-Closing Date Morgan Keegan matters described above are subject to such indemnification provisions. Management estimates the range of potential liability of all such matters subject to indemnification, including the cost of defense, to be from $30 million to $250 million. Any loss arising from such matters, after consideration of the applicable annual deductible, if any, will be borne by Regions. As of September 30, 2013, a receivable from Regions of approximately $2.7 million is included in other receivables, an indemnification asset of approximately $171 million is included in other assets (see Note 10 for additional information), and a liability for potential losses of approximately $169 million is included within trade and other payables, all of which are reflected on our Consolidated Statements of Financial Condition pertaining to the above matters and the related indemnification from Regions. The amount included within trade and other payables is the amount within the range of potential liability related to such matters which management estimates is more likely than any other amount within such range. Through September 30, 2013, Regions has reimbursed us approximately $25 million for costs we incurred in excess of the accrued liability amounts for legal matters subject to indemnification included in the final Closing Date tangible net book value computation. | ||||
Other matters | ||||
We are a defendant or co-defendant in various lawsuits and arbitrations incidental to our securities business as well as other corporate litigation. We are contesting the allegations in these cases and believe that there are meritorious defenses in each of these lawsuits and arbitrations. In view of the number and diversity of claims against us, the number of jurisdictions in which litigation is pending and the inherent difficulty of predicting the outcome of litigation and other claims, we cannot state with certainty what the eventual outcome of pending litigation or other claims will be. Refer to Note 2 for a discussion of our criteria for establishing a range of possible loss related to such matters. Excluding any amounts subject to indemnification from Regions related to pre-Closing Date Morgan Keegan matters discussed above, as of September 30, 2013, management currently estimates the aggregate range of possible loss is from $0 to an amount of up to $6 million in excess of the accrued liability (if any) related to these matters. In the opinion of management, based on current available information, review with outside legal counsel, and consideration of the accrued liability amounts provided for in the accompanying consolidated financial statements with respect to these matters, ultimate resolution of these matters will not have a material adverse impact on our financial position or cumulative results of operations. However, resolution of one or more of these matters may have a material effect on the results of operations in any future period, depending upon the ultimate resolution of those matters and upon the level of income for such period. |
OTHER_COMPREHENSIVE_INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
OTHER COMPREHENSIVE INCOME | ' | |||||||||||
OTHER COMPREHENSIVE INCOME | ||||||||||||
The activity in other comprehensive income and related tax effects are as follows: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Net unrealized gain on available for sale securities, (net of tax effect of $9 million in fiscal year 2013, $7.6 million in fiscal year 2012, and $1.5 million in fiscal year 2011) | $ | 15,042 | $ | 12,886 | $ | 2,621 | ||||||
Net change in currency translations and net investment hedges (net of a tax effect of $6.9 million in fiscal year 2013 and ($5.7) million in fiscal year 2012)(1) | (13,763 | ) | 6,166 | (6,029 | ) | |||||||
Other comprehensive income (loss) | $ | 1,279 | $ | 19,052 | $ | (3,408 | ) | |||||
The components of accumulated other comprehensive income, net of income taxes, are as follows: | ||||||||||||
September 30, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Net unrealized loss on available for sale securities, (net of tax effects of ($700) thousand at September 30, 2013 and ($9.7) million at September 30, 2012) | $ | (1,276 | ) | $ | (16,318 | ) | ||||||
Net currency translations and net investment hedges (net of a tax effect of $1.1 million at September 30, 2013 and ($5.7) million at September 30, 2012) (1) | 12,002 | 25,765 | ||||||||||
Accumulated other comprehensive income | $ | 10,726 | $ | 9,447 | ||||||||
(1) Includes net gains (losses) recognized on forward foreign exchange derivatives of $14 million and $(10) million for the years ended September 30, 2013 and 2012, respectively (see Note 18 for additional information). We did not enter into any forward foreign exchange derivative contracts during the year ended September 30, 2011. | ||||||||||||
All of the components of other comprehensive income described above, net of tax, are attributable to RJF. |
INTEREST_INCOME_AND_INTEREST_E
INTEREST INCOME AND INTEREST EXPENSE | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Interest Income (Expense), Net [Abstract] | ' | ||||||||||||
INTEREST INCOME AND INTEREST EXPENSE | ' | ||||||||||||
INTEREST INCOME AND INTEREST EXPENSE | |||||||||||||
The components of interest income and interest expense are as follows: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Interest income: | |||||||||||||
Margin balances | $ | 60,931 | $ | 60,104 | $ | 52,361 | |||||||
Assets segregated pursuant to regulations and other segregated assets | 17,251 | 16,050 | 16,343 | ||||||||||
Bank loans, net of unearned income | 335,964 | 319,211 | 270,057 | ||||||||||
Available for sale securities | 8,005 | 9,076 | 10,815 | ||||||||||
Trading instruments | 20,089 | 20,977 | 20,549 | ||||||||||
Stock loan | 8,271 | 9,110 | 6,035 | ||||||||||
Loans to financial advisors | 6,510 | 4,797 | 4,688 | ||||||||||
Corporate cash and all other | 16,578 | 13,933 | 11,470 | ||||||||||
Total interest income | 473,599 | 453,258 | 392,318 | ||||||||||
Interest expense: | |||||||||||||
Brokerage client liabilities | 2,049 | 2,213 | 3,422 | ||||||||||
Retail bank deposits | 9,032 | 9,484 | 12,543 | ||||||||||
Trading instruments sold but not yet purchased | 3,595 | 2,437 | 3,621 | ||||||||||
Stock borrow | 2,158 | 1,976 | 1,807 | ||||||||||
Borrowed funds | 4,724 | 5,915 | 3,969 | ||||||||||
Senior notes | 76,113 | 58,523 | 31,320 | ||||||||||
Interest expense of consolidated VIEs | 3,959 | 5,032 | 6,049 | ||||||||||
Other | 8,741 | 5,789 | 3,099 | ||||||||||
Total interest expense | 110,371 | 91,369 | 65,830 | ||||||||||
Net interest income | 363,228 | 361,889 | 326,488 | ||||||||||
Subtract: provision for loan losses | (2,565 | ) | (25,894 | ) | (33,655 | ) | |||||||
Net interest income after provision for loan losses | $ | 360,663 | $ | 335,995 | $ | 292,833 | |||||||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||
EMPLOYEE BENEFIT PLANS | ||||||||||||
Our profit sharing plan and employee stock ownership plan (“ESOP”) provide certain death, disability or retirement benefits for all employees who meet certain service requirements. The plans are noncontributory. Our contributions, if any, are determined annually by our Board of Directors on a discretionary basis and are recognized as compensation cost throughout the year. Benefits become fully vested after six years of qualified service. | ||||||||||||
All shares owned by the ESOP are included in earnings per share calculations. Cash dividends paid to the ESOP are reflected as a reduction of retained earnings. The number of shares of our common stock held by the ESOP at September 30, 2013 and 2012 was approximately 5,872,000 and 6,038,000, respectively. The market value of our common stock held by the ESOP at September 30, 2013 was approximately $244 million, of which approximately $2.4 million is unearned (not yet vested) by ESOP plan participants. | ||||||||||||
We also offer a plan pursuant to section 401(k) of the Internal Revenue Code, which is a qualified plan that may provide for a discretionary contribution or a matching contribution each year. Matching contributions are 100% of the first $500 and 50% of the next $500 of compensation deferred by each participant annually. | ||||||||||||
Our LTIP is a non-qualified deferred compensation plan that provides benefits to employees who meet certain compensation or production requirements. We have purchased and hold life insurance on the lives of certain current and former employee participants to earn a competitive rate of return for participants and to provide a source of funds available to satisfy our obligations under this plan. | ||||||||||||
Contributions to the qualified plans and the LTIP, are approved annually by the compensation committee of our Board of Directors. | ||||||||||||
Effective January 1, 2013, we established a Voluntary Deferred Compensation Plan (the “VDCP”), a non-qualified and voluntary opportunity for certain highly compensated employees and independent contractors to defer compensation. Eligible participants must have annual compensation of $300,000 or more, and may elect to defer a percentage or specific dollar amount of their compensation into the VDCP. We hold life insurance on the lives of certain current employee participants to provide a source of funds available to satisfy our obligations under this plan. | ||||||||||||
As part of the Morgan Keegan acquisition, we maintain non-qualified deferred compensation plans for the benefit of certain employees that provides a return to the participating employees based upon the performance of various referenced investments (see Note 3 for more information about this acquisition). Under these plans, we invest directly, as a principal, in such investments related to our obligations to perform under the deferred compensation plans (see Note 5 for the fair value of these investments as of September 30, 2013, and 2012). Contributions may be made quarterly as well as annually in accordance with the applicable division’s compensation plan. Such contributions are approved by senior management. | ||||||||||||
Compensation expense includes aggregate contributions to these plans of $61.8 million, $57.8 million and $54.1 million for fiscal years 2013, 2012 and 2011, respectively. | ||||||||||||
Share-based compensation plans | ||||||||||||
We have one share-based compensation plan for our employees, Board of Directors and non-employees (comprised of independent contractor financial advisors). The 2012 Stock Incentive Plan (the “2012 Plan”) permits us to grant share-based and cash-based awards designed to be exempt from the limitation on deductible compensation under Section 162(m) of the Internal Revenue Code. Under the 2012 Plan, we may grant 15,400,000 new shares in addition to the shares available for grant under six predecessor plans which were terminated as of February 23, 2012 (except with respect to awards previously granted under such terminated predecessor plans which remain outstanding). The 2012 Plan is the successor to predecessor plans under which options, restricted stock or restricted stock units have previously been issued. | ||||||||||||
We have issued new shares under the 2012 Plan and also are permitted to reissue our treasury shares. In addition, we recognize the resulting realized tax benefit or deficit that exceeds or is less than the previously recognized deferred tax asset for share-based awards (the excess tax benefit) as additional paid-in capital. | ||||||||||||
Stock option awards | ||||||||||||
Options are granted to key administrative employees and employee financial advisors who achieve certain gross commission levels. Options granted before August 21, 2008 are exercisable in the 36th to 72nd months following the date of grant and only in the event that the grantee is an employee of ours at that time, disabled, deceased or recently retired. Options granted on or after August 21, 2008 are exercisable in the 36th to 72nd months following the date of grant and only in the event that the grantee is an employee of ours or has terminated within 45 days, disabled, deceased or recently retired. Options are granted with an exercise price equal to the market price of our stock on the grant date. | ||||||||||||
Options granted to the members of our Board of Directors vest over a three year period from grant date provided that the director is still serving on our Board. Prior to February 2011, non-employee directors were granted options for shares annually. Starting in February 2011, restricted stock units are being issued annually to our outside directors in lieu of stock options. Option terms are specified in individual agreements and expire on a date no later than the tenth anniversary of the grant date. | ||||||||||||
Expense and income tax benefits related to our stock options awards granted to employees and members of our Board of Directors are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 8,382 | $ | 9,623 | $ | 7,319 | ||||||
Income tax benefits related to share-based expense | 596 | 701 | 319 | |||||||||
These amounts may not be representative of future share-based compensation expense since the estimated fair value of stock options is amortized over the requisite service period using the straight-line method, and in certain instances the graded vesting attribution method, and additional options may be granted in future years. The fair value of each fixed option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for stock option grants in fiscal years 2013, 2012 and 2011: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Dividend yield | 1.37 | % | 1.84 | % | 1.8 | % | ||||||
Expected volatility | 39.38 | % | 45.17 | % | 43.74 | % | ||||||
Risk-free interest rate | 0.67 | % | 0.91 | % | 1.41 | % | ||||||
Expected lives (in years) | 5.5 | 4.6 | 4.9 | |||||||||
The dividend yield assumption is based on our declared dividend as a percentage of the stock price at the date of the grant. The expected volatility assumption is based on our historical stock price and is a weighted average combining (1) the volatility of the most recent year, (2) the volatility of the most recent time period equal to the expected lives assumption, (3) the implied volatility of option contracts of RJF stock, and (4) the annualized volatility of the price of our stock since the late 1980s. The risk-free interest rate assumption is based on the U.S. Treasury yield curve in effect at the time of grant of the options. The expected lives assumption is based on the average of (1) the assumption that all outstanding options will be exercised at the midpoint between their vesting date and full contractual term and (2) the assumption that all outstanding options will be exercised at their full contractual term. | ||||||||||||
A summary of option activity for grants to employees and members of our Board of Directors for the fiscal year ended September 30, 2013 is presented below: | ||||||||||||
Options | Weighted- average exercise | Weighted- average remaining contractual | Aggregate intrinsic | |||||||||
for shares | price ($) | term (years) | value ($) | |||||||||
Outstanding at October 1, 2012 | 4,392,270 | $ | 27.14 | |||||||||
Granted | 840,150 | 37.96 | ||||||||||
Exercised | (1,262,076 | ) | 28.87 | |||||||||
Forfeited | (126,635 | ) | 27.8 | |||||||||
Expired | (900 | ) | 30.89 | |||||||||
Outstanding at September 30, 2013 | 3,842,809 | $ | 28.92 | 3.19 | $ | 49,032,000 | ||||||
Exercisable at September 30, 2013 | 584,627 | $ | 26.16 | 1.16 | $ | 9,066,000 | ||||||
As of September 30, 2013, there was $16 million of total unrecognized pre-tax compensation cost, net of estimated forfeitures, related to stock option awards. These costs are expected to be recognized over a weighted-average period of approximately 2.9 years. | ||||||||||||
The following stock option activity occurred under the 2012 Plan for grants to employees and members of our Board of Directors: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands, except per option amounts) | ||||||||||||
Weighted-average grant date fair value per option | $ | 12.06 | $ | 9.67 | $ | 9.62 | ||||||
Total intrinsic value of stock options exercised | 14,240 | 3,222 | 10,553 | |||||||||
Total grant date fair value of stock options vested | 11,598 | 3,965 | 9,206 | |||||||||
Cash received from stock option exercises for the fiscal year ended September 30, 2013 was $33 million. There was approximately a $301 thousand tax benefit realized during the fiscal year ended September 30, 2013 resulting from the exercise of option awards during the fiscal year. | ||||||||||||
Restricted stock awards | ||||||||||||
We may grant awards under the 2012 Plan in connection with initial employment or under various retention programs for individuals who are responsible for a contribution to the management, growth, and/or profitability. Through our Canadian subsidiary, we established a trust fund. This trust fund was established and funded to enable the trust fund to acquire our common stock in the open market to be used to settle restricted stock units granted as a retention vehicle for certain employees of the Canadian subsidiary (see Note 11 for discussion of our consolidation of this trust fund, which is a VIE). We may also grant awards to officers and certain other employees in lieu of cash for 10% to 50% of annual bonus amounts in excess of $250,000. In 2010, our Board of Directors approved the granting of restricted stock unit awards rather than restricted stock awards after reviewing certain income tax consequences to retirement eligible participants associated with the restricted stock awards. Our intention is to issue restricted stock units rather than restricted stock awards in the future. The determination of the number of units or shares to be granted is determined by the compensation committee of the Board of Directors. Under the plan, the awards are generally restricted for a three to five year period, during which time the awards are forfeitable in the event of termination other than for death, disability or retirement. The following activity occurred during the fiscal year ended September 30, 2013: | ||||||||||||
Shares/Units | Weighted- average | |||||||||||
grant date | ||||||||||||
fair value ($) | ||||||||||||
Non-vested at October 1, 2012 | 6,050,789 | $ | 29.87 | |||||||||
Granted | 1,001,231 | 38.12 | ||||||||||
Vested | (954,805 | ) | 26.86 | |||||||||
Forfeited | (179,804 | ) | 33.16 | |||||||||
Non-vested at September 30, 2013 | 5,917,411 | $ | 31.66 | |||||||||
Expense and income tax benefits related to our restricted stock awards are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 48,621 | $ | 39,588 | $ | 30,179 | ||||||
Income tax benefits related to share-based expense | 16,607 | 13,186 | 11,468 | |||||||||
For the twelve months ended September 30, 2013, we realized $3.6 million of excess tax benefits related to our restricted stock awards. | ||||||||||||
As of September 30, 2013, there was $91.6 million of total unrecognized pre-tax compensation cost, net of estimated forfeitures, related to restricted stock shares and restricted stock units. These costs are expected to be recognized over a weighted-average period of approximately 2.88 years. The total fair value of shares and unit awards vested under this plan during the fiscal year ended September 30, 2013 was $25.4 million. | ||||||||||||
Employee stock purchase plan | ||||||||||||
Under the 2003 Employee Stock Purchase Plan, we are authorized to issue up to 7,375,000 shares of common stock to our full-time employees, nearly all of whom are eligible to participate. Under the terms of the plan, employees can choose each year to have up to 20% of their annual compensation specified to purchase our common stock. Share purchases in any calendar year are limited to the lesser of 1,000 shares or shares with a fair market value of $25,000. The purchase price of the stock is 85% of the market price on the day prior to the purchase date. Under the plan we sold approximately 436,000, 480,000 and 337,000 shares to employees during the years ended September 30, 2013, 2012 and 2011, respectively. The compensation cost is calculated as the value of the 15% discount from market value and was $2.7 million, $2.4 million and $1.6 million during the fiscal years ended September 30, 2013, 2012 and 2011, respectively. | ||||||||||||
Employee investment funds | ||||||||||||
Certain key employees participate in the EIF Funds, which are limited partnerships that invest in certain of our merchant banking and venture capital activities and other unaffiliated venture capital limited partnerships (see Notes 2 and 11 for further information on our consolidation of the EIF Funds, which are VIEs). We made non-recourse loans to these key employees for two-thirds of the purchase price per unit. All of these loans have been repaid. | ||||||||||||
As part of the Morgan Keegan acquisition, we acquired various employee investment funds. Certain key employees participate in these funds, which are limited partnerships that invest in certain unaffiliated venture capital limited partnerships. |
NONEMPLOYEE_SHAREBASED_AND_OTH
NON-EMPLOYEE SHARE-BASED AND OTHER COMPENSATION | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Share-based Goods and Nonemployee Services Transaction [Abstract] | ' | |||||||||||
NON-EMPLOYEE SHARE-BASED AND OTHER COMPENSATION | ' | |||||||||||
NON-EMPLOYEE SHARE-BASED AND OTHER COMPENSATION | ||||||||||||
Stock option awards | ||||||||||||
Under the 2012 Plan, we may grant stock options to our independent contractor financial advisors. We have issued new shares under the 2012 Plan and also are permitted to reissue our treasury shares. The 2012 Plan is the successor to the prior plan under which options have previously been issued to independent contractors. Options granted prior to August 21, 2008 are exercisable five years after grant date provided that the financial advisors are still associated with us, disabled, deceased or recently retired. Options granted on or after August 21, 2008 are exercisable five years after grant date provided that the financial advisors are still associated with us or have terminated within 45 days, disabled, deceased or recently retired. Option terms are specified in individual agreements and expire on a date no later than the sixth anniversary of the grant date. Options are granted with an exercise price equal to the market price of our stock on the grant date. | ||||||||||||
Absent a specific performance commitment, share-based awards granted to our independent contractor financial advisors are measured at their vesting date fair value and their fair value estimated at reporting dates prior to that time. The compensation expense recognized each period is based on the most recent estimated value. Further, we classify these non-employee awards as liabilities at fair value upon vesting, with changes in fair value reported in earnings until these awards are exercised or forfeited. | ||||||||||||
Expense and income tax benefits related to stock option grants to our independent contractor financial advisors are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 1,282 | $ | 2,033 | $ | 952 | ||||||
Income tax benefits related to share-based expense | 487 | 773 | 362 | |||||||||
The fair value of each option grant awarded to an independent contractor financial advisor is estimated on the date of grant and periodically revalued using the Black-Scholes option pricing model with the following weighted-average assumptions used for fiscal years ended 2013, 2012 and 2011: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Dividend yield | 1.34 | % | 1.52 | % | 1.62 | % | ||||||
Expected volatility | 39.88 | % | 43.84 | % | 44.14 | % | ||||||
Risk-free interest rate | 1.16 | % | 0.73 | % | 0.65 | % | ||||||
Expected lives (in years) | 3.32 | 3.27 | 2.54 | |||||||||
The dividend yield assumption is based on our declared dividend as a percentage of the stock price at the date of the grant. The expected volatility assumption is based on our historical stock price and is a weighted average combining (1) the volatility of the most recent year, (2) the volatility of the most recent time period equal to the expected lives assumption, (3) the implied volatility of option contracts of RJF stock, and (4) the annualized volatility of the price of our stock since the late 1980s. The risk-free interest rate assumption is based on the U.S. Treasury yield curve in effect at each point in time the options are valued. The expected lives assumption is based on the difference between the option’s vesting date plus 90 days (the average exercise period) and the date of the current reporting period. | ||||||||||||
A summary of independent contractor financial advisors option activity for the fiscal year ended September 30, 2013 is presented below: | ||||||||||||
Options | Weighted-average exercise | Weighted-average remaining contractual | Aggregate intrinsic | |||||||||
for shares | price ($) | term (years) | value ($) | |||||||||
Outstanding at October 1, 2012 | 320,750 | $ | 27.87 | — | ||||||||
Granted | 47,600 | 37.87 | — | |||||||||
Exercised | (133,900 | ) | 31.4 | — | ||||||||
Forfeited | (4,300 | ) | 26.76 | — | ||||||||
Expired | (1,900 | ) | 31.78 | — | ||||||||
Outstanding at September 30, 2013 | 228,250 | $ | 27.88 | 3.05 | $ | 3,148,000 | ||||||
Exercisable at September 30, 2013 | 13,000 | $ | 30.44 | 0.16 | $ | 146,000 | ||||||
As of September 30, 2013, there was $875 thousand of total unrecognized pre-tax compensation cost, net of estimated forfeitures, related to unvested stock options granted to our independent contractor financial advisors based on an estimated weighted-average fair value of $17.68 per share at that date. These costs are expected to be recognized over a weighted-average period of approximately 2.95 years. The following activity for our independent contractor financial advisors occurred as follows: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total intrinsic value of stock options exercised | $ | 985 | $ | 783 | $ | 3,300 | ||||||
Total fair value of stock options vested | 347 | 1,116 | 1,448 | |||||||||
Cash received from stock option exercises for the fiscal year ended September 30, 2013 was $4.2 million. There were $127 thousand excess tax benefits realized for the tax deductions from option exercise of awards to our independent contractor financial advisors for the fiscal year ended September 30, 2013. | ||||||||||||
Restricted stock awards | ||||||||||||
Under the 2012 Plan we may grant restricted shares of common stock or restricted stock units to employees and independent contractor financial advisors. The 2012 Plan is the successor the prior plan under which restricted stock or restricted stock units have been issued to independent contractors. We issue new shares under this plan as it was approved by shareholders. In 2010, our Board of Directors approved the granting of restricted stock unit awards rather than restricted stock awards after reviewing certain income tax consequences to retirement eligible participants associated with the restricted stock awards. Our intention is to issue restricted stock units rather than restricted stock awards in the future. Under the plan the awards are generally restricted for a five year period, during which time the awards are forfeitable in the event the independent contractor financial advisors are no longer associated with us, other than for death, disability or retirement. The following activity for our independent contractor financial advisors occurred during the fiscal year ended September 30, 2013: | ||||||||||||
Shares/Units | Weighted- average | |||||||||||
reporting date | ||||||||||||
fair value ($) | ||||||||||||
Non-vested at October 1, 2012 | 105,945 | $ | 36.65 | |||||||||
Granted | — | |||||||||||
Vested | (74,356 | ) | ||||||||||
Forfeited | (5,405 | ) | ||||||||||
Non-vested at September 30, 2013 | 26,184 | $ | 41.67 | |||||||||
The weighted-average fair value of share and unit awards vested during the fiscal year ended September 30, 2013 was $42.11 per share. The weighted-average fair value of share and unit awards forfeited during the fiscal year ended September 30, 2013 was $36.71 per share. | ||||||||||||
Expense and income tax benefits related to our restricted stock awards granted to our independent contractor financial advisors are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 829 | $ | 2,062 | $ | 923 | ||||||
Income tax benefits related to share-based expense | 315 | 783 | 351 | |||||||||
As of September 30, 2013, there was $231 thousand of total unrecognized pre-tax compensation cost, net of estimated forfeitures, related to unvested restricted stock granted to our independent contractor financial advisors based on an estimated fair value of $41.67 per share at that date. These costs are expected to be recognized over a weighted-average period of approximately 1.91 years. The total fair value of share and unit awards vested during the years ended September 30, 2013, 2012 and 2011 was $3.1 million, $1.6 million and $49 thousand, respectively. | ||||||||||||
Other compensation | ||||||||||||
We offer non-qualified deferred compensation plans that provide benefits to our independent contractor financial advisors who meet certain production requirements. We have purchased and hold life insurance on employees, to earn a competitive rate of return for participants and to provide the source of funds available to satisfy our obligations under some of these plans. The contributions are made in amounts approved annually by management. |
REGULATIONS_AND_CAPITAL_REQUIR
REGULATIONS AND CAPITAL REQUIREMENTS | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||
REGULATIONS AND CAPITAL REQUIREMENTS | ' | ||||||||||||||||||||
REGULATIONS AND CAPITAL REQUIREMENTS | |||||||||||||||||||||
RJF, as a financial holding company, and RJ Bank, are subject to various regulatory capital requirements administered by bank regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our and RJ Bank’s financial results. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, RJF and RJ Bank must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. RJF’s and RJ Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | |||||||||||||||||||||
RJF and RJ Bank are required to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital to average assets (as defined). RJF and RJ Bank each calculate the Total Capital and Tier I Capital ratios in order to assess compliance with both regulatory requirements and their internal capital policies in addition to providing a measure of underutilized capital should these ratios become excessive. Capital levels are continually monitored to assess both RJF and RJ Bank’s capital position. At current capital levels, RJF and RJ Bank are each categorized as “well capitalized” under the regulatory framework for prompt corrective action. | |||||||||||||||||||||
To be categorized as “well capitalized,” RJF must maintain total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. | |||||||||||||||||||||
Actual | Requirement for capital | To be well capitalized under prompt | |||||||||||||||||||
adequacy purposes | corrective action | ||||||||||||||||||||
provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
($ in thousands) | |||||||||||||||||||||
RJF as of September 30, 2013: | |||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 3,445,136 | 19.8 | % | $ | 1,391,974 | 8 | % | $ | 1,739,968 | 10 | % | |||||||||
Tier I capital (to risk-weighted assets) | 3,294,595 | 18.9 | % | 697,269 | 4 | % | 1,045,903 | 6 | % | ||||||||||||
Tier I capital (to adjusted assets) | 3,294,595 | 14.5 | % | 908,854 | 4 | % | 1,136,067 | 5 | % | ||||||||||||
RJF as of September 30, 2012: | |||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 3,056,794 | 18.9 | % | $ | 1,293,881 | 8 | % | $ | 1,617,351 | 10 | % | |||||||||
Tier I capital (to risk-weighted assets) | 2,896,279 | 17.9 | % | 647,213 | 4 | % | 970,820 | 6 | % | ||||||||||||
Tier I capital (to adjusted assets) | 2,896,279 | 14 | % | 827,508 | 4 | % | 1,034,385 | 5 | % | ||||||||||||
The increases in RJF’s Total capital (to risk-weighted assets) and Tier 1 capital (to risk-weighted assets) at September 30, 2013 compared to September 30, 2012 each resulted from the positive effect of the net income generated during the year ended September 30, 2013 offset by the growth experienced in our loan portfolio and market risk equivalent assets. The increase in RJF’s Tier 1 capital (to adjusted assets) ratio at September 30, 2013 compared to September 30, 2012 was primarily due to the positive impact of the net income generated during the year ended September 30, 2013 offset by growth of average total assets. | |||||||||||||||||||||
To be categorized as “well capitalized,” RJ Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below. | |||||||||||||||||||||
Actual | Requirement for capital | To be well capitalized under prompt | |||||||||||||||||||
adequacy purposes | corrective action | ||||||||||||||||||||
provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
($ in thousands) | |||||||||||||||||||||
RJ Bank as of September 30, 2013: | |||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 1,234,268 | 13 | % | $ | 758,996 | 8 | % | $ | 948,745 | 10 | % | |||||||||
Tier I capital (to risk-weighted assets) | 1,115,113 | 11.8 | % | 379,498 | 4 | % | 569,247 | 6 | % | ||||||||||||
Tier I capital (to adjusted assets) | 1,115,113 | 10.4 | % | 430,154 | 4 | % | 537,692 | 5 | % | ||||||||||||
RJ Bank as of September 30, 2012: | |||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 1,158,139 | 13.4 | % | $ | 694,275 | 8 | % | $ | 867,844 | 10 | % | |||||||||
Tier I capital (to risk-weighted assets) | 1,049,060 | 12.1 | % | 347,137 | 4 | % | 520,706 | 6 | % | ||||||||||||
Tier I capital (to adjusted assets) | 1,049,060 | 10.9 | % | 386,245 | 4 | % | 482,807 | 5 | % | ||||||||||||
The decrease in RJ Bank’s Total and Tier I Capital (to risk-weighted assets) ratios at September 30, 2013 compared to September 30, 2012 were primarily due to an increase in risk-weighted assets during the current year resulting from RJ Bank’s utilization of low risk-weighted excess cash balances at September 30, 2012 to fund significant loan growth. The decrease in the Tier I capital (to adjusted assets) ratio at September 30, 2013 compared to September 30, 2012 was primarily due to an increase in earnings and significant loan growth during the year ended September 30, 2013. | |||||||||||||||||||||
Our intention is to maintain RJ Bank’s “well capitalized” status. RJ Bank maintains a targeted total capital to risk-weighted assets ratio of at least 12.5%. In the unlikely event that RJ Bank failed to maintain its “well capitalized” status, the consequences could include a requirement to obtain a waiver prior to acceptance, renewal, or rollover of brokered deposits and higher FDIC premiums, but would not have a significant impact on our operations. | |||||||||||||||||||||
RJ Bank may pay dividends to the parent company without prior approval by its regulator as long as the dividend does not exceed the sum of RJ Bank’s current calendar year and the previous two calendar years’ retained net income, and RJ Bank maintains its targeted capital to risk-weighted assets ratios. | |||||||||||||||||||||
Certain of our broker-dealer subsidiaries are subject to the requirements of the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934. RJ&A, MK & Co., and RJFS, each being member firms of the Financial Industry Regulatory Authority (“FINRA”), are subject to the rules of FINRA, whose capital requirements are substantially the same as Rule 15c3-1. Rule 15c3-1 requires that aggregate indebtedness, as defined, not exceed 15 times net capital, as defined. Rule 15c3-1 also provides for an “alternative net capital requirement,” which RJ&A, MK & Co. and RJFS have each elected. Regulations require that minimum net capital, as defined, be equal to the greater of $1 million, ($250 thousand for RJFS and MK & Co. as of September 30, 2013) or two percent of aggregate debit items arising from client transactions. FINRA may require a member firm to reduce its business if its net capital is less than four percent of Aggregate Debit Items and may prohibit a member firm from expanding its business and declaring cash dividends if its net capital is less than five percent of aggregate debit items. | |||||||||||||||||||||
The net capital position of our wholly owned broker-dealer subsidiary RJ&A is as follows: | |||||||||||||||||||||
As of September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Raymond James & Associates, Inc.: | |||||||||||||||||||||
(Alternative Method elected) | |||||||||||||||||||||
Net capital as a percent of aggregate debit items | 23.14 | % | 17.22 | % | |||||||||||||||||
Net capital | $ | 435,343 | $ | 264,315 | |||||||||||||||||
Less: required net capital | (37,625 | ) | (30,696 | ) | |||||||||||||||||
Excess net capital | $ | 397,718 | $ | 233,619 | |||||||||||||||||
In mid-February 2013 the client accounts of MK & Co. were transferred to RJ&A which resulted in a significant change in the nature of MK & Co. business operations. Subsequent to the client account transfer and as of September 30, 2013, MK & Co. ceased operating as a self-clearing broker-dealer carrying client accounts, and became a special purpose broker-dealer. As a result of this change in operations, MK & Co.’s, capital requirements as of September 30, 2013 are significantly different than those as of September 30, 2012. | |||||||||||||||||||||
The net capital position of our wholly owned broker-dealer subsidiary MK & Co. is as follows: | |||||||||||||||||||||
As of September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(As amended) (1) | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Morgan Keegan & Company, Inc.: | |||||||||||||||||||||
(Alternative Method elected) | |||||||||||||||||||||
Net capital as a percent of aggregate debit items | — | 65.84 | % | ||||||||||||||||||
Net capital | $ | 6,047 | $ | 263,366 | |||||||||||||||||
Less: required net capital | (250 | ) | (8,432 | ) | |||||||||||||||||
Excess net capital | $ | 5,797 | $ | 254,934 | |||||||||||||||||
-1 | MK & Co.’s net capital position as of September 30, 2012 was amended for insignificant changes to conform to final regulatory filings. | ||||||||||||||||||||
The net capital position of our wholly owned broker-dealer subsidiary RJFS is as follows: | |||||||||||||||||||||
As of September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Raymond James Financial Services, Inc.: | |||||||||||||||||||||
(Alternative Method elected) | |||||||||||||||||||||
Net capital | $ | 18,103 | $ | 11,689 | |||||||||||||||||
Less: required net capital | (250 | ) | (250 | ) | |||||||||||||||||
Excess net capital | $ | 17,853 | $ | 11,439 | |||||||||||||||||
RJ Ltd. is subject to the Minimum Capital Rule (Dealer Member Rule No. 17 of the Investment Industry Regulatory Organization of Canada (“IIROC”)) and the Early Warning System (Dealer Member Rule No. 30 of the IIROC). The Minimum Capital Rule requires that every member shall have and maintain at all times risk-adjusted capital greater than zero calculated in accordance with Form 1 (Joint Regulatory Financial Questionnaire and Report) and with such requirements as the Board of Directors of the IIROC may from time to time prescribe. Insufficient risk-adjusted capital may result in suspension from membership in the stock exchanges or the IIROC. | |||||||||||||||||||||
The Early Warning System is designed to provide advance warning that a member firm is encountering financial difficulties. This system imposes certain sanctions on members who are designated in Early Warning Level 1 or Level 2 according to their capital, profitability, liquidity position, frequency of designation or at the discretion of the IIROC. Restrictions on business activities and capital transactions, early filing requirements, and mandated corrective measures are sanctions that may be imposed as part of the Early Warning System. RJ Ltd. is not in Early Warning Level 1 or Level 2 at either September 30, 2013 or 2012. | |||||||||||||||||||||
The risk adjusted capital of RJ Ltd. is as follows (in Canadian dollars): | |||||||||||||||||||||
As of September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Raymond James Ltd.: | |||||||||||||||||||||
Risk adjusted capital before minimum | $ | 52,777 | $ | 77,871 | |||||||||||||||||
Less: required minimum capital | (250 | ) | (250 | ) | |||||||||||||||||
Risk adjusted capital | $ | 52,527 | $ | 77,621 | |||||||||||||||||
Raymond James Trust, N.A., (“RJT”) is regulated by the OCC and is required to maintain sufficient capital and meet capital and liquidity requirements. As of September 30, 2013 and 2012, RJT met the requirements. | |||||||||||||||||||||
At September 30, 2013, all of our other active regulated domestic and international subsidiaries are in compliance with and met all capital requirements. | |||||||||||||||||||||
RJF expects to continue paying cash dividends. However, the payment and rate of dividends on our common stock is subject to several factors including our operating results, financial requirements, and the availability of funds from our subsidiaries, including our broker-dealer and bank subsidiaries, which may be subject to restrictions under regulatory capital rules. The availability of funds from subsidiaries may also be subject to restrictions contained in loan covenants of certain broker-dealer loan agreements; dividends to the parent from RJ Bank may be subject to restrictions by bank regulators. None of these restrictions have ever limited our past dividend payments. |
FINANCIAL_INSTRUMENTS_WITH_OFF
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | ' | |||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | |||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ||||||||
In the normal course of business, we purchase and sell securities as either principal or agent on behalf of our clients. If either the client or counterparty fails to perform, we may be required to discharge the obligations of the nonperforming party. In such circumstances, we may sustain a loss if the market value of the security or futures contract is different from the contract value of the transaction. | ||||||||
We also act as an intermediary between broker-dealers and other financial institutions whereby we borrow securities from one broker-dealer and then lend them to another. Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions. We measure the market value of the securities borrowed and loaned against the cash collateral on a daily basis. The market value of securities borrowed was $64.6 million and securities loaned was $42.7 million at September 30, 2013, and the market value of securities borrowed was $93.1 million and securities loaned was $81.8 million at September 30, 2012. The contract value of securities borrowed and securities loaned was $66.4 million and $49.5 million, respectively, at September 30, 2013 and the contract value of securities borrowed and securities loaned was $96.3 million and $91.5 million, respectively, at September 30, 2012. Additional cash is obtained as necessary to ensure such transactions are adequately collateralized. If another party to the transaction fails to perform as agreed (for example, failure to deliver a security or failure to pay for a security), we may incur a loss if the market value of the security is different from the contract amount of the transaction. | ||||||||
We have also loaned, to broker-dealers and other financial institutions, securities owned by clients and others for which we have received cash or other collateral. The market value of securities loaned was $299.1 million and $334.1 million at September 30, 2013 and 2012, respectively. The contract value of securities loaned was $305.1 million and $339.6 million at September 30, 2013 and 2012, respectively. If a borrowing institution or broker-dealer does not return a security, we may be obligated to purchase the security in order to return it to the owner. In such circumstances, we may incur a loss equal to the amount by which the market value of the security on the date of nonperformance exceeds the value of the collateral received from the financial institution or the broker-dealer. | ||||||||
We have sold securities that we do not currently own, and will, therefore, be obligated to purchase such securities at a future date. We have recorded $220.7 million and $232.4 million at September 30, 2013 and 2012, respectively, which represents the market value of such securities (see Notes 5 and 6 for further information). We are subject to loss if the market price of those securities not covered by a hedged position increases subsequent to fiscal year-end. We utilize short positions on government obligations and equity securities to economically hedge long proprietary inventory positions. | ||||||||
We enter into security transactions on behalf of our clients and other brokers involving forward settlement. Forward contracts provide for the delayed delivery of the underlying instrument. The contractual amounts related to these financial instruments reflect the volume and activity and do not reflect the amounts at risk. The gain or loss on these transactions is recognized on a trade date basis. Transactions involving future settlement give rise to market risk, which represents the potential loss that can be caused by a change in the market value of a particular financial instrument. Our exposure to market risk is determined by a number of factors, including the duration, size, composition and diversification of positions held, the absolute and relative levels of interest rates, and market volatility. The credit risk for these transactions is limited to the unrealized market valuation gains recorded in the Consolidated Statements of Financial Condition. | ||||||||
The majority of our transactions and, consequently, the concentration of our credit exposure, is with clients, broker-dealers and other financial institutions in the U.S. These activities primarily involve collateralized arrangements and may result in credit exposure in the event that the counterparty fails to meet its contractual obligations. Our exposure to credit risk can be directly impacted by volatile securities markets, which may impair the ability of counterparties to satisfy their contractual obligations. We seek to control our credit risk through a variety of reporting and control procedures, including establishing credit limits based upon a review of the counterparties’ financial condition and credit ratings. We monitor collateral levels on a daily basis for compliance with regulatory and internal guidelines and request changes in collateral levels as appropriate. | ||||||||
RJ Ltd. is subject to foreign exchange risk primarily due to financial instruments held in U.S. dollars that may be impacted by fluctuation in foreign exchange rates. In order to mitigate this risk, RJ Ltd. enters into forward foreign exchange contracts. The fair value of these contracts is not significant. As of September 30, 2013, forward contracts outstanding to buy and sell U.S. dollars totaled CDN $5 million and CDN $5.8 million, respectively. RJ Bank is also subject to foreign exchange risk related to its net investment in a Canadian subsidiary. See Note 18 for information regarding how RJ Bank utilizes net investment hedges to mitigate a significant portion of this risk. | ||||||||
RJ Bank has outstanding at any time a significant number of commitments to extend credit and other credit-related off-balance sheet financial instruments such as standby letters of credit and loan purchases, which then extend over varying periods of time. These arrangements are subject to strict credit control assessments and each customer’s credit worthiness is evaluated on a case-by-case basis. Fixed-rate commitments, if any, are also subject to market risk resulting from fluctuations in interest rates and RJ Bank’s exposure is limited to the replacement value of those commitments. A summary of commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding follows: | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Standby letters of credit | $ | 122,672 | $ | 140,688 | ||||
Open end consumer lines of credit | 829,923 | 480,304 | ||||||
Commercial lines of credit | 1,743,594 | 1,804,771 | ||||||
Unfunded loan commitments | 216,918 | 101,077 | ||||||
In the normal course of business, RJ Bank issues, or participates in the issuance of, financial standby letters of credit whereby it provides an irrevocable guarantee of payment in the event the letter of credit is drawn down by the beneficiary. These standby letters of credit generally expire in one year or less. As of September 30, 2013, $123 million of such letters of credit were outstanding. In the event that a letter of credit is drawn down, RJ Bank would pursue repayment from the party under the existing borrowing relationship, or would liquidate collateral, or both. The proceeds from repayment or liquidation of collateral are expected to satisfy the amounts drawn down under the existing letters of credit. The credit risk involved in issuing letters of credit is essentially the same as that involved with extending loan commitments to clients and, accordingly, RJ Bank uses a credit evaluation process and collateral requirements similar to those for loan commitments. | ||||||||
Open end consumer lines of credit represent the unfunded amounts of loans primarily secured by marketable securities at advance rates consistent with industry standards. The proceeds from repayment or, if necessary, the liquidation of collateral, which is monitored daily, are expected to satisfy the amounts drawn against these existing lines of credit. | ||||||||
Because many lending commitments expire without being funded in whole or part, the contract amounts are not estimates of RJ Bank’s actual future credit exposure or future liquidity requirements. RJ Bank maintains a reserve to provide for potential losses related to the unfunded lending commitments. See Note 9 for further discussion of this reserve for unfunded lending commitments. | ||||||||
Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. The credit risk amounts are equal to the contractual amounts, assuming that the amounts are fully advanced and that the collateral or other security is of no value. RJ Bank uses the same credit approval and monitoring process in extending loan commitments and other credit-related off-balance sheet instruments as it does in making loans. | ||||||||
As a part of our fixed income public finance operations, RJ&A enters into forward commitments to purchase GNMA MBS. See Note 20 for information on these commitments. We utilize TBA security contracts to hedge our interest rate risk associated with these commitments. We incur either gains or losses, depending upon market conditions, if the timing of or the actual amount of GNMA MBS securities differs significantly from the term and notional amount of the TBA security contracts into which we enter. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
EARNINGS PER SHARE | |||||||||||||
The following table presents the computation of basic and diluted earnings per share: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Income for basic earnings per common share: | |||||||||||||
Net income attributable to RJF | $ | 367,154 | $ | 295,869 | $ | 278,353 | |||||||
Less allocation of earnings and dividends to participating securities (1) | (4,164 | ) | (5,958 | ) | (8,777 | ) | |||||||
Net income attributable to RJF common shareholders | $ | 362,990 | $ | 289,911 | $ | 269,576 | |||||||
Income for diluted earnings per common share: | |||||||||||||
Net income attributable to RJF | $ | 367,154 | $ | 295,869 | $ | 278,353 | |||||||
Less allocation of earnings and dividends to participating securities (1) | (4,100 | ) | (5,926 | ) | (8,756 | ) | |||||||
Net income attributable to RJF common shareholders | $ | 363,054 | $ | 289,943 | $ | 269,597 | |||||||
Common shares: | |||||||||||||
Average common shares in basic computation | 137,732 | 130,806 | 122,448 | ||||||||||
Dilutive effect of outstanding stock options and certain restricted stock units | 2,809 | 985 | 388 | ||||||||||
Average common shares used in diluted computation | 140,541 | 131,791 | 122,836 | ||||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 2.64 | $ | 2.22 | $ | 2.2 | |||||||
Diluted | $ | 2.58 | $ | 2.2 | $ | 2.19 | |||||||
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive | 1,153 | 1,928 | 2,136 | ||||||||||
-1 | Represents dividends paid during the period to participating securities plus an allocation of undistributed earnings to participating securities. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of 1.6 million, 2.7 million and 4 million for the years ended September 30, 2013, 2012 and 2011, respectively. Dividends paid to participating securities amounted to $800 thousand, $1.4 million and $1.9 million for the years ended September 30, 2013, 2012, and 2011 respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. | ||||||||||||
Dividends per common share declared and paid are as follows: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividends per common share - declared | $ | 0.56 | $ | 0.52 | $ | 0.52 | |||||||
Dividends per common share - paid | $ | 0.55 | $ | 0.52 | $ | 0.5 | |||||||
SEGMENT_ANALYSIS
SEGMENT ANALYSIS | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
SEGMENT ANALYSIS | ' | ||||||||||||
SEGMENT ANALYSIS | |||||||||||||
Effective September 30, 2013, we implemented changes in our reportable segments. The changes are a result of management’s assessment of the usefulness and materiality of certain of our historic reportable segments. The effect of the change is that we now report the following five business segments: “Private Client Group;” “Capital Markets;” “Asset Management;” RJ Bank; and the “Other” segment. Prior period segment balances impacted by this change in reportable segments have been reclassified to conform to the current presentation. | |||||||||||||
The business segments are determined based upon factors such as the services provided and the distribution channels served and are consistent with how we assess performance and determine how to allocate our resources throughout our subsidiaries. The financial results of our segments are presented using the same policies as those described in Note 2, “Summary of Significant Accounting Policies.” Segment data includes charges allocating corporate overhead and benefits to each segment. Intersegment revenues, charges, receivables and payables are eliminated upon consolidation. | |||||||||||||
The Private Client Group segment includes the retail branches of our broker-dealer subsidiaries located throughout the U.S., Canada and the United Kingdom. These branches provide securities brokerage services including the sale of equities, mutual funds, fixed income products and insurance products to their individual clients. The segment includes net interest earnings on client margin loans and cash balances and certain fee revenues generated by the multi-bank aspect of the RJBDP. Additionally, this segment includes the activities associated with the borrowing and lending of securities to and from other broker-dealers, financial institutions and other counterparties, generally as an intermediary or to facilitate RJ&A’s clearance and settlement obligations and the correspondent clearing services that we provide to other broker-dealer firms. | |||||||||||||
The Capital Markets segment includes institutional sales and trading in the U.S., Canada and Europe. We provide securities brokerage, trading, and research services to institutions with an emphasis on the sale of U.S. and Canadian equities and fixed income products. This segment also includes our management of and participation in underwritings, merger and acquisition services, public finance activities, the operations of RJTCF, and our Latin American joint ventures. | |||||||||||||
The Asset Management segment includes the operations of Eagle, the Eagle Family of Funds, the asset management operations of RJ&A, trust services of RJT, and other fee-based asset management programs. | |||||||||||||
RJ Bank originates and purchases C&I loans, commercial and residential real estate loans, as well as consumer loans, all of which are funded primarily by cash balances swept from the investment accounts of our broker-dealer subsidiaries’ clients. | |||||||||||||
The Other segment includes our principal capital and private equity activities as well as various corporate costs of RJF that are not allocated to operating segments including the interest cost on our public debt, the acquisition and integration costs primarily associated with our acquisition of Morgan Keegan, and the loss associated with the securities repurchased in prior years as a result of the ARS settlement (see Note 7 for additional information). | |||||||||||||
Information concerning operations in these segments of business is as follows: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Revenues: | |||||||||||||
Private Client Group | $ | 2,930,603 | $ | 2,484,670 | $ | 2,192,422 | |||||||
Capital Markets | 945,477 | 820,852 | 707,460 | ||||||||||
Asset Management | 292,817 | 237,224 | 226,511 | ||||||||||
RJ Bank | 356,130 | 345,693 | 281,992 | ||||||||||
Other | 126,401 | 58,412 | 27,329 | ||||||||||
Intersegment eliminations | (55,630 | ) | (48,951 | ) | (35,828 | ) | |||||||
Total revenues(1) | $ | 4,595,798 | $ | 3,897,900 | $ | 3,399,886 | |||||||
Income (loss) excluding noncontrolling interests and before provision for income taxes: | |||||||||||||
Private Client Group | $ | 230,315 | $ | 215,091 | $ | 220,299 | |||||||
Capital Markets | 102,171 | 75,755 | 82,521 | ||||||||||
Asset Management | 96,300 | 67,241 | 66,176 | ||||||||||
RJ Bank | 267,714 | 240,158 | 172,993 | ||||||||||
Other | (132,313 | ) | (2) | (126,720 | ) | (2) | (80,742 | ) | (3) | ||||
Pre-tax income excluding noncontrolling interests | 564,187 | 471,525 | 461,247 | ||||||||||
Add: net loss attributable to noncontrolling interests | 29,723 | (3,604 | ) | (10,502 | ) | ||||||||
Income including noncontrolling interests and before provision for income taxes | $ | 593,910 | $ | 467,921 | $ | 450,745 | |||||||
-1 | No individual client accounted for more than ten percent of total revenues in any of the years presented. | ||||||||||||
-2 | The Other segment includes acquisition related expenses pertaining to our acquisitions in the amount of $73.5 million and $59.3 million for the years ended September 30, 2013 and 2012, respectively (see Note 3 for further information regarding our acquisitions). | ||||||||||||
-3 | The Other segment for the year ended September 30, 2011 includes a $41 million loss provision for auction rate securities (see Note 7 for additional information). | ||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Net interest income (expense): | |||||||||||||
Private Client Group | $ | 85,301 | $ | 84,827 | $ | 71,724 | |||||||
Capital Markets | 4,076 | 6,641 | 6,166 | ||||||||||
Asset Management | 81 | (17 | ) | 107 | |||||||||
RJ Bank | 338,844 | 322,024 | 271,306 | ||||||||||
Other | (65,074 | ) | (51,586 | ) | (22,815 | ) | |||||||
Net interest income | $ | 363,228 | $ | 361,889 | $ | 326,488 | |||||||
The following table presents our total assets on a segment basis: | |||||||||||||
September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Total assets: | |||||||||||||
Private Client Group (1) | $ | 7,649,030 | $ | 6,917,562 | |||||||||
Capital Markets (2) | 2,548,663 | 2,558,143 | |||||||||||
Asset Management | 149,436 | 81,838 | |||||||||||
RJ Bank | 10,489,524 | 9,701,996 | |||||||||||
Other | 2,349,469 | 1,900,726 | |||||||||||
Total | $ | 23,186,122 | $ | 21,160,265 | |||||||||
-1 | Includes $174 million and $173 million of goodwill at September 30, 2013 and 2012, respectively. | ||||||||||||
-2 | Includes $121 million and $127 million of goodwill at September 30, 2013 and 2012, respectively. | ||||||||||||
We have operations in the United States, Canada, Europe and joint ventures in Latin America. Substantially all long-lived assets are located in the United States. Revenues and income before provision for income taxes and excluding noncontrolling interests, classified by major geographic areas in which they are earned, are as follows: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Revenues: | |||||||||||||
United States | $ | 4,177,712 | $ | 3,500,982 | $ | 2,947,633 | |||||||
Canada | 310,616 | 297,348 | 339,067 | ||||||||||
Europe | 83,744 | 78,221 | 63,665 | ||||||||||
Other | 23,726 | 21,349 | 49,521 | ||||||||||
Total | $ | 4,595,798 | $ | 3,897,900 | $ | 3,399,886 | |||||||
Pre-tax income excluding noncontrolling interests: | |||||||||||||
United States | $ | 543,093 | $ | 450,731 | $ | 416,955 | |||||||
Canada | 28,470 | 29,593 | 42,333 | ||||||||||
Europe | (8,032 | ) | (1,839 | ) | (2,312 | ) | |||||||
Other | 656 | (6,960 | ) | 4,271 | |||||||||
Total | $ | 564,187 | $ | 471,525 | $ | 461,247 | |||||||
Our total assets, classified by major geographic area in which they are held, are presented below: | |||||||||||||
September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Total assets: | |||||||||||||
United States (1) | $ | 21,154,293 | $ | 19,296,197 | |||||||||
Canada(2) | 1,965,648 | 1,788,883 | |||||||||||
Europe(3) | 26,415 | 42,220 | |||||||||||
Other | 39,766 | 32,965 | |||||||||||
Total | $ | 23,186,122 | $ | 21,160,265 | |||||||||
-1 | Includes $262 million and $260 million of goodwill at September 30, 2013 and 2012, respectively. | ||||||||||||
-2 | Includes $33 million of goodwill at September 30, 2013 and 2012. | ||||||||||||
-3 | Includes $7 million of goodwill at September 30, 2012. |
CONDENSED_FINANCIAL_INFORMATIO
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | ' | |||||||||||
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | ||||||||||||
As more fully described in Note 1, RJF (or the “Parent”), is a financial holding company whose subsidiaries are engaged in various financial services businesses. The Parent’s primary activities include investments in subsidiaries and corporate investments, including cash management, company-owned life insurance and private equity investments. The primary source of operating cash available to the Parent is provided by dividends from its subsidiaries. | ||||||||||||
Our principal domestic broker-dealer subsidiaries of the Parent, RJ&A and RJFS, are required by regulations to maintain a minimum amount of net capital (other non-bank subsidiaries of the Parent are also required by regulations to maintain a minimum amount of net capital, but those other subsidiaries are relatively insignificant). RJ&A is further required by certain covenants in its borrowing agreements to maintain net capital equal to 10% of aggregate debit balances. At September 30, 2013, each of these brokerage subsidiaries far exceeded their minimum net capital requirements. See Note 25 for further information. | ||||||||||||
RJ Bank has net assets of approximately $1 billion as of September 30, 2013. | ||||||||||||
Subsidiary net assets of approximately $1.4 billion are restricted from being transferred from certain subsidiaries to the Parent as of September 30, 2013, under regulatory or other restrictions. | ||||||||||||
Liquidity available to the Parent from its other subsidiaries, other than broker-dealer subsidiaries and RJ Bank, is not limited by regulatory or other restrictions, but is relatively insignificant. The Parent regularly receives a portion of the profits of subsidiaries, other than RJ Bank, as dividends. | ||||||||||||
See Notes 15, 17, 20 and 25 for more information regarding borrowings, commitments, contingencies and guarantees, and capital and regulatory requirements of the Parent’s subsidiaries. | ||||||||||||
The following table presents the Parent’s statement of financial condition: | ||||||||||||
September 30, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 274,747 | $ | 259,129 | ||||||||
Intercompany receivables from subsidiaries: | ||||||||||||
Bank subsidiary | 44 | — | ||||||||||
Non-bank subsidiaries (1) | 920,827 | 558,051 | ||||||||||
Investments in consolidated subsidiaries: | ||||||||||||
Bank subsidiary | 1,106,742 | 1,038,449 | ||||||||||
Non-bank subsidiaries | 2,393,035 | 2,515,223 | ||||||||||
Property and equipment, net | 10,546 | 14,398 | ||||||||||
Goodwill and identifiable intangible assets, net | 31,954 | (2) | 274,309 | |||||||||
Other assets | 634,446 | 241,716 | ||||||||||
Total assets | $ | 5,372,341 | $ | 4,901,275 | ||||||||
Liabilities and equity: | ||||||||||||
Trade and other | 66,159 | 91,628 | ||||||||||
Intercompany payables to subsidiaries: | ||||||||||||
Bank subsidiary | — | 39 | ||||||||||
Non-bank subsidiaries | 217,497 | 263,717 | ||||||||||
Accrued compensation and benefits | 276,916 | 128,294 | ||||||||||
Corporate debt | 1,148,845 | 1,148,657 | ||||||||||
Total liabilities | 1,709,417 | 1,632,335 | ||||||||||
Equity | 3,662,924 | 3,268,940 | ||||||||||
Total liabilities and equity | $ | 5,372,341 | $ | 4,901,275 | ||||||||
-1 | Of the total receivable from non-bank subsidiaries, $760 million and $446 million at September 30, 2013 and 2012, respectively, is invested in cash and cash equivalents by the subsidiary on behalf of the Parent. | |||||||||||
-2 | The decrease in goodwill and identifiable intangible assets as of September 30, 2013 compared to the prior year period is primarily the result of the mid-February 2013 transfers of the client accounts of MK & Co. to RJ&A pursuant to our Morgan Keegan acquisition integration strategy (see Note 3 for additional information regarding the Morgan Keegan acquisition). Such transfers constitute transfers of businesses amongst entities under common control of RJF. Accordingly, the goodwill arising from the Morgan Keegan acquisition which had been maintained on the Parent’s statement of financial condition was pushed-down to the statement of financial condition of the subsidiary that received the transferred businesses. There was no impact on the Consolidated Statements of Financial Condition associated with these intercompany transfers. See Note 13 for additional information regarding goodwill and identifiable intangible assets. | |||||||||||
The following table presents the Parent’s statement of income: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Revenues: | ||||||||||||
Dividends from non-bank subsidiaries | $ | 822,996 | $ | 433,643 | $ | 164,121 | ||||||
Dividends from bank subsidiary | 100,000 | 75,000 | 100,000 | |||||||||
Interest from subsidiaries | 1,966 | 1,876 | 1,068 | |||||||||
Interest | 2,510 | 322 | 240 | |||||||||
Other, net | 6,017 | 7,391 | 7,762 | |||||||||
Total revenues | 933,489 | 518,232 | 273,191 | |||||||||
Expenses: | ||||||||||||
Compensation and benefits | 43,673 | 38,027 | 28,214 | |||||||||
Communications and information processing | 5,029 | 4,624 | 3,821 | |||||||||
Occupancy and equipment costs | 1,005 | 1,188 | 1,112 | |||||||||
Business development | 16,506 | 12,613 | 11,684 | |||||||||
Interest | 78,244 | 61,122 | 31,309 | |||||||||
Other | 9,608 | 26,716 | 5,894 | |||||||||
Intercompany allocations and charges | (33,115 | ) | (25,360 | ) | (28,757 | ) | ||||||
Total expenses | 120,950 | 118,930 | 53,277 | |||||||||
Income before income tax benefits and equity in undistributed net income of subsidiaries | 812,539 | 399,302 | 219,914 | |||||||||
Income tax benefits | (54,047 | ) | (48,575 | ) | (11,037 | ) | ||||||
Income before equity in undistributed net income of subsidiaries | 866,586 | 447,877 | 230,951 | |||||||||
Equity in undistributed net income of subsidiaries | (499,432 | ) | (152,008 | ) | 47,402 | |||||||
Net income | $ | 367,154 | $ | 295,869 | $ | 278,353 | ||||||
Other comprehensive income, net of tax: | ||||||||||||
Change in unrealized gain on available for sale securities and non-credit portion of other-than-temporary impairment losses | — | 2 | — | |||||||||
Total comprehensive income | $ | 367,154 | $ | 295,871 | $ | 278,353 | ||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 367,154 | $ | 295,869 | $ | 278,353 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Gain on investments | (11,264 | ) | (6,286 | ) | (6,758 | ) | ||||||
(Gain) loss on company-owned life insurance | (24,907 | ) | (22,848 | ) | 3,208 | |||||||
Equity in undistributed net income of subsidiaries | 499,432 | 152,008 | (47,402 | ) | ||||||||
Other, net | (120,340 | ) | 57,221 | 40,917 | ||||||||
Net change in: | ||||||||||||
Intercompany receivables | (68,635 | ) | (35,456 | ) | (254,735 | ) | ||||||
Other | 33,584 | (266,467 | ) | 12,406 | ||||||||
Intercompany payables | (214,415 | ) | 239,669 | (6,090 | ) | |||||||
Trade and other | 10,017 | 22,034 | 12,093 | |||||||||
Accrued compensation and benefits | 148,622 | 44,156 | 5,144 | |||||||||
Net cash provided by operating activities | 619,248 | 479,900 | 37,136 | |||||||||
Cash flows from investing activities: | ||||||||||||
Investments in and advances to subsidiaries, net | (384,622 | ) | (278,590 | ) | (264,000 | ) | ||||||
Purchases of investments, net | (171,677 | ) | 3,258 | (5,859 | ) | |||||||
Purchase of investments in company-owned life insurance, net | (15,017 | ) | (18,271 | ) | (12,224 | ) | ||||||
Acquisition of subsidiary | — | (1,073,621 | ) | — | ||||||||
Net cash used in investing activities | (571,316 | ) | (1,367,224 | ) | (282,083 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from borrowed funds, net | — | 586,860 | 249,498 | |||||||||
Proceeds from issuance of shares in registered public offering | — | 362,823 | — | |||||||||
Exercise of stock options and employee stock purchases | 55,997 | 33,811 | 47,383 | |||||||||
Purchase of treasury stock | (11,718 | ) | (20,860 | ) | (23,111 | ) | ||||||
Dividends on common stock | (76,593 | ) | (68,782 | ) | (63,090 | ) | ||||||
Net cash (used in) provided by financing activities | (32,314 | ) | 893,852 | 210,680 | ||||||||
Net increase (decrease) in cash and cash equivalents | 15,618 | 6,528 | (34,267 | ) | ||||||||
Cash and cash equivalents at beginning of year | 259,129 | 252,601 | 286,868 | |||||||||
Cash and cash equivalents at end of year | $ | 274,747 | $ | 259,129 | $ | 252,601 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 78,439 | $ | 49,155 | $ | 25,800 | ||||||
Cash received for income taxes, net | $ | (100,179 | ) | $ | (74,501 | ) | $ | (15,613 | ) | |||
Supplemental disclosures of noncash investing activity: | ||||||||||||
Investments in subsidiaries | $ | 457,048 | $ | 153,854 | $ | 40,359 | ||||||
INTRODUCTION_AND_BASIS_OF_PRES1
INTRODUCTION AND BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of presentation | ' |
Basis of presentation | |
The consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100% owned subsidiaries. In addition we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 in the section titled, “Evaluation of VIEs to determine whether consolidation is required” and in Note 11. When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation. | |
Acquisitions | ' |
Fiscal Year 2013 Acquisition | |
On December 24, 2012, we completed our acquisition of a 45% interest in ClariVest Asset Management, LLC (“ClariVest”), an acquisition that bolsters our platform in the large-cap investment objective. See Note 3 for additional information. | |
Fiscal Year 2012 Acquisition | |
On April 2, 2012 (the “Closing Date”) RJF completed its acquisition of all of the issued and outstanding shares of Morgan Keegan & Company, Inc. (a broker-dealer hereinafter referred to as “MK & Co.”) and MK Holding, Inc. and certain of its affiliates (collectively referred to hereinafter as “Morgan Keegan”) from Regions Financial Corporation (“Regions”). This acquisition expands both our private client and our capital markets businesses. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of Morgan Keegan recorded as of the acquisition date at their respective fair values and consolidated in our financial statements, see Note 3 for further information regarding our acquisition of Morgan Keegan. The results of operations of Morgan Keegan have been included in our results prospectively from April 2, 2012. | |
Fiscal Year 2011 Acquisitions | |
As of April 1, 2011, we completed our acquisition of Howe Barnes. The Howe Barnes stockholders received 217,088 shares of our common stock valued at $8.3 million in exchange for all of the outstanding Howe Barnes shares. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of Howe Barnes recorded as of the acquisition date at their respective fair value and consolidated in our financial statements. Howe Barnes’ results of operations have been included in our results prospectively from April 1, 2011. | |
As of April 4, 2011, one of our wholly owned subsidiaries increased its pre-existing share of ownership in Raymond James European Securities, S.A.S. (“RJES”) by contributing $6.4 million in cash in exchange for additional RJES shares. As a result of this acquisition of incremental RJES shares, effective with this transaction we hold a controlling interest in RJES. Accordingly, we applied the acquisition method of accounting to our interest in RJES as of the date we acquired the controlling interest, with the assets and liabilities of RJES recorded at their respective fair value and consolidated in our financial statements, and the portion we do not own included in noncontrolling interests. RJES results of operations have been included in our results prospectively from April 4, 2011. | |
Accounting estimates and assumptions | ' |
Accounting estimates and assumptions | |
The preparation of consolidated financial statements in conformity with United States of America (“U.S.”) generally accepted accounting principles (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and could have a material impact on the consolidated financial statements. | |
Reporting period | ' |
Reporting period | |
Our quarters end on the last day of each calendar quarter. | |
Reclassifications | ' |
Reclassifications | |
Effective September 30, 2013 we implemented changes in our reportable segments. These segment changes have no effect on the historical financial results of operations. Prior period segment balances impacted by this change have been reclassified to conform to the current presentation. See Note 28 for additional information related to this change. | |
Certain other prior period amounts, none of which are material, have been reclassified to conform to the current year’s presentation. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Recognition of revenues | ' | |
Recognition of revenues | ||
Securities commissions & fees | ||
The significant components of our securities commissions and fees revenue include the following: | ||
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 the customer which, in certain cases, may include varying discounts. | |
b. | Fee revenues include certain asset-based fees. These fees include trailing commissions from mutual funds and variable annuities/insurance products, which are recorded ratably over the period earned. | |
c. | Fee revenues also include the 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. Such fees are earned from the services provided by investment advisor representatives (“IARs”) and registered investment advisors (“RIAs”) who affiliate with us. | |
Financial advisors may choose to affiliate with us as either an employee of RJ&A, and thus operate under the RJ&A registered investment advisor (“RIA”) license, or as an independent contractor affiliated with RJFS. If affiliated with RJFS, the financial advisor may choose to provide such advisory services either under their own RIA license, or under the RIA license of RJFSA, a wholly owned RIA that exclusively supports the investment advisory activities of financial advisors affiliated with RJFS. | ||
The revenue recognition and related expense policies associated with the generation of advisory fees from each of these affiliation alternatives are as follows: | ||
i. | Investment advisory service fee revenues earned by employee financial advisors (IARs of RJ&A) are presented in securities commissions and fees revenue on a gross basis. The RJ&A IARs are paid compensation which is computed as a percentage of the revenues generated and which is recorded as a component of compensation, commissions and benefits expense. | |
ii. | Investment advisory service fee revenues earned by independent contractors who are registered representatives (“RR”) with RJFS are also registered with RJFSA and offer investment advisory services under RJFSA’s RIA license as an IAR of RJFSA are presented in securities fees and commissions revenue on a gross basis. These financial advisors are paid a portion of the revenues generated which is recorded as a component of compensation, commissions and benefits expense. | |
iii. | Independent RIA firms that are owned and operated by a financial advisor who is an independent contractor registered as a RR with RJFS, may receive administrative and custodial services provided by RJFS as introducing broker-dealer firm to RJ&A. These independent RIA 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. | |
iv. | 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 provided through RJFS. 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. | |
d. | Insurance commission revenues and related expenses are recognized when the delivery of the insurance contract is confirmed by the carrier, the premium is remitted to the insurance company and the contract requirements are met. | |
e. | Annuity commission revenues and related expenses are recognized when the signed annuity contract and premium is submitted to the annuity carrier. | |
Investment banking | ||
Investment banking revenues are recorded at the time a transaction is completed and the related income is reasonably determinable. Investment banking revenues include management fees and underwriting fees, net of reimbursable expenses, earned in connection with the distribution of the underwritten securities, merger and acquisition fees, private placement fees and limited partnership distributions. Securities received in connection with investment banking transactions are carried at fair value. | ||
We distribute our proprietary equity research products to our client base of institutional investors at no charge. | ||
Investment advisory fees | ||
We provide advice, research and administrative services for customers participating in both our managed and non-managed investment programs. These revenues are generated by our asset management businesses for administering and managing portfolios, funds and separate accounts. These asset management services are provided to individual investment portfolios, mutual funds and managed programs. We earn investment advisory fees based on the value of clients’ portfolios which are held in either managed or non-managed programs. Fees are computed based on balances either at the beginning of the quarter, the end of the quarter, or average assets. These fees are recorded ratably over the period earned. | ||
Account and service fees | ||
Account and service fees primarily include transaction fees, annual account fees, service charges, exit fees, servicing fees, fees generated in lieu of interest income from a multi-bank sweep program with unaffiliated banks, money market processing and distribution fees and correspondent clearing fees. The annual account fees such as IRA fees and distribution fees are recognized as earned over the term of the contract. The transaction fees are earned and collected from clients as trades are executed. Servicing fees such as omnibus, education and marketing support fees, and no-transaction fee program revenues are paid to us for marketing and administrative services and are recognized as earned. Under clearing agreements, we clear trades for unaffiliated correspondent brokers and retain a portion of commissions as a fee for our services. Correspondent clearing revenues are recorded net of commissions remitted. Total commissions generated by correspondents were $35.5 million, $33.5 million, and $39.3 million and commissions remitted totaled $32.6 million, $31.2 million, and $36.1 million for the years ended September 30, 2013, 2012, and 2011 respectively. | ||
Cash and cash equivalents | ' | |
Cash and cash equivalents | ||
Our cash equivalents include money market funds or highly liquid investments with original maturities of 90 days or less, other than those used for trading purposes. | ||
Assets segregated pursuant to regulations and other segregated assets | ' | |
Assets segregated pursuant to regulations and other segregated assets | ||
In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, RJ&A (and MK & Co. as of September 30, 2012), as broker-dealers carrying client accounts, are subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of their clients. In addition, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. Segregated assets at September 30, 2013 and 2012 consist of cash and cash equivalents. | ||
RJ Bank maintains interest-bearing bank deposits that are restricted for pre-funding letter of credit draws related to certain syndicated borrowing relationships in which RJ Bank is involved and occasionally pledged as collateral for Federal Home Loan Bank of Atlanta (“FHLB”) advances. In addition, RJ Bank maintains cash in an interest-bearing pass-through account at the Federal Reserve Bank in accordance with Regulation D of the Federal Reserve Act, which requires depository institutions to maintain minimum average reserve balances against its deposits. | ||
Repurchase agreements and other collaterized financings | ' | |
Repurchase agreements and other collateralized financings | ||
We purchase securities under short-term agreements to resell (“Reverse Repurchase Agreements”). Additionally, we sell securities under agreements to repurchase (“Repurchase Agreements”). Both Reverse Repurchase Agreements and Repurchase Agreements are accounted for as collateralized financings and are carried at contractual amounts plus accrued interest. Our policy is to obtain possession of collateral with a market value equal to or in excess of the principal amount loaned under the Reverse Repurchase Agreements. To ensure that the market value of the underlying collateral remains sufficient, the securities are valued daily, and cash is obtained from or returned to the counterparty when contractually required. These Reverse Repurchase Agreements may result in credit exposure in the event the counterparty to the transaction is unable to fulfill its contractual obligations. Other collateralized financings include secured call loans receivable held by RJ Ltd. These financings represent loans of excess cash to financial institutions which are fully collateralized by Canadian treasury bills or provincial obligations and bear interest at call loan rates. | ||
Financial instruments owned, financial instruments sold but not yet purchased and fair value | ' | |
Financial instruments owned, financial instruments sold but not yet purchased and fair value | ||
Financial instruments owned and financial instruments sold, but not yet purchased are recorded at fair value. Fair value is defined by GAAP as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants on the measurement date. | ||
In determining the fair value of our financial instruments in accordance with GAAP, we use various valuation approaches, including market and/or income approaches. Fair value is a market-based measure considered from the perspective of a market participant. As such, even when assumptions from market participants are not readily available, our own assumptions reflect those that we believe market participants would use in pricing the asset or liability at the measurement date. GAAP provides for the following three levels to be used to classify our fair value measurements: | ||
Level 1-Financial instruments included in Level 1 are highly liquid instruments with quoted prices in active markets for identical assets or liabilities. These include equity securities traded in active markets and certain U. S. Treasury securities, other governmental obligations, or publicly traded corporate debt securities. | ||
Level 2-Financial instruments reported in Level 2 include those that have pricing inputs that are other than quoted prices in active markets, but which are either directly or indirectly observable as of the reporting date (i.e., prices for similar instruments). Instruments that are generally included in this category are equity securities that are not actively traded, corporate obligations infrequently traded, certain government and municipal obligations, interest rate swaps, certain asset-backed securities (“ABS”), certain collateralized mortgage obligations (“CMOs”), certain mortgage-backed securities (“MBS”), our derivative instruments and nonrecurring fair value measurements for certain loans held for sale, impaired loans and other real estate owned (“OREO”). | ||
Level 3-Financial instruments reported in Level 3 have little, if any, market activity and are measured using our best estimate of fair value, where the inputs into the determination of fair value are both significant to the fair value measurement and unobservable. These valuations require significant judgment or estimation. Instruments in this category generally include: equity securities with unobservable inputs such as those investments made in our proprietary capital activities, certain non-agency CMOs, certain non-agency ABS, pools of interest-only Small Business Administration (“SBA”) loan strips (“I/O Strips”), certain municipal and corporate obligations which include auction rate securities (“ARS”) and nonrecurring fair value measurements for certain impaired loans. | ||
GAAP requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when performing our fair value measurements. The availability of observable inputs can vary from instrument to instrument and in certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement of an instrument requires judgment and consideration of factors specific to the instrument. | ||
We offset our long and short positions for a particular security recorded at fair value as part of our trading instruments (long positions) and trading instruments sold but not yet purchased (short positions), when the long and short positions have identical Committee on Uniform Security Identification Procedures numbers (“CUSIPs”). | ||
Valuation techniques | ||
The fair value for certain of our financial instruments is derived using pricing models and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of our financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available will generally have a higher degree of price transparency than financial instruments that are thinly traded or not quoted. In accordance with GAAP, the criteria used to determine whether the market for a financial instrument is active or inactive is based on the particular asset or liability. For equity securities, our definition of actively traded is based on average daily volume and other market trading statistics. We have determined the market for certain other types of financial instruments, including certain CMOs, ABS, certain collateralized debt obligations and ARS, to be volatile, uncertain or inactive as of both September 30, 2013 and 2012. As a result, the valuation of these financial instruments included significant management judgment in determining the relevance and reliability of market information available. We considered the inactivity of the market to be evidenced by several factors, including a continued decreased price transparency caused by decreased volume of trades relative to historical levels, stale transaction prices and transaction prices that varied significantly either over time or among market makers. | ||
The specific valuation techniques utilized for the categorization of financial instruments presented in our Consolidated Statements of Financial Condition are described below: | ||
Trading instruments and trading instruments sold but not yet purchased | ||
Trading instruments are comprised primarily of the financial instruments held by our broker-dealer subsidiaries. These instruments are recorded at fair value with unrealized gains and losses reflected in current period net income. | ||
When available, we use quoted prices in active markets to determine the fair value of our trading securities. Such instruments are classified within Level 1 of the fair value hierarchy. Examples include exchange traded equity securities and liquid government debt securities. | ||
When instruments are traded in secondary markets and quoted market prices do not exist for such securities, we utilize valuation techniques including matrix pricing to estimate fair value. Matrix pricing generally utilizes spread-based models periodically re-calibrated to observable inputs such as market trades or to dealer price bids in similar securities in order to derive the fair value of the instruments. Valuation techniques may also rely on other observable inputs such as yield curves, interest rates and expected principal repayments and default probabilities. Instruments valued using these inputs are typically classified within Level 2 of the fair value hierarchy. Examples include certain municipal debt securities, corporate debt securities, agency MBS, and restricted equity securities in public companies. We utilize prices from independent services to corroborate our estimate of fair value. Depending upon the type of security, the pricing service may provide a listed price, a matrix price or use other methods including broker-dealer price quotations. | ||
The fair value for SBA loan securitizations is determined by utilizing observable prices obtained from a third party pricing service. The third party pricing service provides comparable price evaluations utilizing observable market data for similar securities. We substantiate the prices obtained from the third party pricing service by comparing such prices for a sample of securities to observable market trades obtained from external sources. The instruments valued using these observable inputs are typically classified within Level 2 of the fair value hierarchy. | ||
Positions in illiquid securities that do not have readily determinable fair values require significant judgment or estimation. For these securities we use pricing models, discounted cash flow methodologies or similar techniques. Assumptions utilized by these techniques include estimates of future delinquencies, loss severities, defaults and prepayments or redemptions. Securities valued using these techniques are classified within Level 3 of the fair value hierarchy. For certain CMOs, where there has been limited activity or less transparency around significant inputs to the valuation, such as assumptions regarding performance of the underlying mortgages, these securities are currently classified within Level 3 of the fair value hierarchy. | ||
I/O Strip securities do not trade in an active market with readily observable prices. Accordingly, we use valuation techniques that consider a number of factors including: (a) the original cost of the pooled underlying SBA loans from which the I/O Strip securities were created, and any changes from the original to the hypothetical cost of buying similar loans under current market conditions; (b) seasoning of the underlying SBA loans in the pool that back the I/O strip securities; (c) the type and nature of the pooled SBA loans backing the I/O Strip securities; (d) actual and assumed prepayment rates on the underlying pools of SBA loans; and (e) market data for past trades in comparable I/O Strip securities. Prices from independent sources are used to corroborate our estimates of fair value. Our I/O Strip securities are recorded in “other securities” within our trading instruments on our Consolidated Statements of Financial Condition. These fair value measurements use significant unobservable inputs and accordingly, we classify them as Level 3 of the fair value hierarchy. | ||
Available for sale securities | ' | |
Available for sale securities | ||
Available for sale securities are comprised primarily of MBS, CMOs and other equity securities held predominately by RJ Bank (the “RJ Bank AFS Securities”) and ARS held by a non-broker-dealer subsidiary of RJF (collectively referred to as the “RJF AFS Securities”). | ||
Interest on the RJF AFS Securities is recognized in interest income on an accrual basis. For the RJ Bank AFS Securities, discounts are accreted and premiums are amortized as an adjustment to yield over the estimated remaining life of the security. A combination of the level factor and straight-line methods is used for such securities, the effect of which does not differ materially from the effective interest method. When a principal reduction occurs on a RJ Bank AFS Security, any related premium or discount is recognized as an adjustment to yield in the results of operations in the period in which the principal reduction occurs. | ||
Realized gains and losses on sales of any RJF AFS Securities are recognized using the specific identification method and reflected in other revenue in the period they are sold. | ||
Unrealized gains or losses on any RJF AFS Securities, except for those that are deemed to be other-than-temporary, are recorded through other comprehensive income and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”). | ||
For any RJF AFS Securities in an unrealized loss position at a reporting period end, we make an assessment whether such securities are impaired on an other-than-temporary basis. In order to evaluate our risk exposure and any potential impairment of these securities, on at least a quarterly basis, we review the characteristics of each security owned such as, where applicable, collateral type, delinquency and foreclosure levels, credit enhancement, projected loan losses, collateral coverage, the presence of U.S. government or government agency guarantees, and issuer credit rating. The following factors are considered in order to determine whether an impairment is other-than-temporary: our intention to sell the security, our assessment of whether it is more likely than not that we will be required to sell the security before the recovery of its amortized cost basis, and whether the evidence indicating that we will recover the amortized cost basis of a security in full outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to period end, recent events specific to the issuer or industry and forecasted performance of the security. | ||
We intend and have the ability to hold the RJF AFS Securities to maturity. We have concluded that it is not more likely than not that we will be required to sell these available for sale securities before the recovery of their amortized cost basis. Those securities whose amortized cost basis we do not expect to recover in full are deemed to be other-than-temporarily impaired and are written down to fair value with the credit loss portion of the write-down recorded as a realized loss in other revenue and the non-credit portion of the write-down recorded, net of deferred taxes, in shareholders’ equity as a component of AOCI. The credit loss portion of the write-down is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security. | ||
For any RJF AFS Securities, we estimate the portion of loss attributable to credit using a discounted cash flow model. For RJ Bank AFS Securities, our discounted cash flow model utilizes relevant assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. These assumptions are subject to change depending on a number of factors such as economic conditions, changes in home prices, delinquency and foreclosure statistics, among others. Events that may trigger material declines in fair values or additional credit losses for these securities in the future would include, but are not limited to, deterioration of credit metrics, significantly higher levels of default and severity of loss on the underlying collateral, deteriorating credit enhancement and loss coverage ratios, or further illiquidity. Expected principal and interest cash flows on the impaired debt security are discounted using the effective interest rate implicit in the security at the time of acquisition. The previous amortized cost basis of the security less the other-than-temporary impairment (“OTTI”) recognized in earnings establishes the new cost basis for the security. | ||
The fair value of agency and senior non-agency securities included within the RJ Bank AFS Securities is determined by obtaining third party pricing service bid quotations from two independent pricing services. Third party pricing service bid quotations are based on either current market data, or for any securities traded in markets where the trading activity has slowed such as the CMO market, the most recently available market data. The third party pricing services provide comparable price evaluations utilizing available market data for similar securities. The market data the third party pricing services utilize for these price evaluations includes observable data comprised of benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data including market research publications, and loan performance experience. In order to validate that the pricing information used by the primary third party pricing service is observable, we request, on a quarterly basis, some of the key market data available for a sample of senior securities and compare this data to that which we observed in our independent accumulation of market information. Securities valued using these valuation techniques are classified within Level 2 of the fair value hierarchy. | ||
For senior non-agency securities within the RJ Bank AFS Securities where a significant difference exists between the primary third party pricing service bid quotation and the secondary third party pricing service, we utilize a discounted cash flow analysis to determine which third party price quote is most representative of fair value under the current market conditions. The fair values for all except three senior non-agency securities at September 30, 2013 were based on the respective primary third party pricing service bid quotation. Securities measured using these valuation techniques are generally classified within Level 2 of the fair value hierarchy. | ||
For the one subordinated non-agency security in the RJ Bank AFS Securities portfolio as of September 30, 2013 and 2012, we estimate its fair value by utilizing discounted cash flow analyses, using observable market data, where available, as well as our own unobservable inputs. The unobservable inputs utilized in our valuation reflect our own suppositions about the assumptions that market participants would use in pricing this security, including those about future delinquencies, loss severities, defaults, prepayments and discount rates. This security is classified within Level 3 of the fair value hierarchy. | ||
ARS are long-term variable rate securities tied to short-term interest rates that were intended to be reset through a “Dutch auction” process, which generally occurs every seven to 35 days. Holders of ARS were at one time able to liquidate their holdings to prospective buyers by participating in the auctions. During 2008, the Dutch auction process failed and holders were no longer able to liquidate their holdings through the auction process. The fair value of the ARS holdings is estimated based on internal pricing models. The pricing model takes into consideration the characteristics of the underlying securities, as well as multiple inputs including the issuer and its credit quality, data from any recent trades, the expected timing of redemptions and an estimated yield premium that a market participant would require over otherwise comparable securities to compensate for the illiquidity of the ARS. These inputs require significant management judgment and accordingly, these securities are classified within Level 3 of the fair value hierarchy. | ||
Derivative contracts | ' | |
Derivative contracts | ||
We enter into interest rate swaps and futures contracts either as part of our fixed income business to facilitate customer transactions, to hedge a portion of our trading inventory, or to a limited extent, for our own account. These derivatives are accounted for as trading account assets or liabilities and recorded at fair value in the Consolidated Statements of Financial Condition. Any realized or unrealized gains or losses are recorded in net trading profits within the Consolidated Statements of Income and Comprehensive Income with any interest earned thereon recorded in interest income. The fair value of any cash collateral exchanged as part of the interest rate swap contract is netted, by-counterparty, against the fair value of the derivative instrument. The fair value of these interest rate derivative contracts is obtained from internal pricing models that consider current market trading levels and the contractual prices for the underlying financial instruments, as well as time value, yield curve and other volatility factors underlying the positions. Since our model inputs can be observed in a liquid market and the models do not require significant judgment, such derivative contracts are classified within Level 2 of the fair value hierarchy. We utilize values obtained from third party derivatives dealers to corroborate the output of our internal pricing models. | ||
We also facilitate matched book derivative transactions through non-broker-dealer subsidiaries, either Raymond James Financial Products, LLC or Morgan Keegan Capital Services, LLC (collectively referred to as the Raymond James matched book swap subsidiaries or “RJSS”). The only difference in the swap businesses conducted by these two subsidiary entities is that they utilize different third party financial institutions to facilitate the offsetting transaction. RJSS enters into derivative transactions (primarily interest rate swaps) with customers of RJ&A. For every derivative transaction RJSS enters into with a customer, it enters into an offsetting transaction with terms that mirror the customer transaction, with a credit support provider who is a third party financial institution. Any collateral required to be exchanged under these derivative contracts is administered directly by the customer and the third party financial institution. RJSS does not hold any collateral, or administer any collateral transactions, related to these instruments. We record the value of each derivative position held at fair value, as either an asset or an offsetting liability, presented as “derivative instruments associated with offsetting matched book positions”, as applicable, on our Consolidated Statements of Financial Condition. Fair value is determined using an internal model which includes inputs from independent pricing sources to project future cash flows under each underlying derivative contract. The cash flows are discounted to determine the present value. Since any changes in fair value are completely offset by an opposite change in the offsetting transaction position, there is no net impact on our Consolidated Statements of Income and Comprehensive Income from changes in the fair value of these derivative instruments. RJSS recognizes revenue on derivative transactions on the transaction date, computed as the present value of the expected cash flows RJSS expects to receive from the third party financial institution over the life of the derivative contract. The difference between the present value of these cash flows at the date of inception and the gross amount potentially received is accreted to revenue over the term of the contract. The revenue from these transactions is included within other revenues on our Consolidated Statements of Income and Comprehensive Income. | ||
RJ Bank enters into three-month forward foreign exchange contracts to hedge the risk related to their investment in their Canadian subsidiary. These derivatives are recorded at fair value on the Consolidated Statements of Financial Condition, the majority of which are designated as net investment hedges. The effective portion of the related gain or loss is recorded, net of tax, in shareholders’ equity as part of the cumulative translation adjustment component of AOCI with such balance impacting earnings in the event the net investment is sold or substantially liquidated. Gains and losses on the undesignated derivative instruments as well as amounts representing hedge ineffectiveness are recorded in earnings in the Consolidated Statements of Income and Comprehensive Income. Hedge effectiveness is assessed at each reporting period using a method that is based on changes in forward rates. The measurement of hedge ineffectiveness is based on the beginning balance of the foreign net investment at the inception of the hedging relationship and performed using the hypothetical derivative method. However, as the terms of the hedging instrument and hypothetical derivative match at inception, there is no expected ineffectiveness to be recorded in earnings. The fair value of any cash collateral exchanged as part of the forward exchange contracts is netted, by counterparty, against the fair value of the derivative instrument. | ||
The fair value of RJ Bank’s forward foreign exchange contracts is determined by obtaining valuations from a third party pricing service. These third party valuations are based on observable inputs such as spot rates, foreign exchange rates and both U.S. and Canadian interest rate curves. We validate the observable inputs utilized in the third party valuation model by preparing an independent calculation using a secondary, third party valuation model. These forward foreign exchange contracts are classified within Level 2 of the fair value hierarchy. | ||
Private equity investments | ' | |
Private equity investments | ||
Private equity investments are held primarily in our Other segment and consist of various direct and third party private equity and merchant banking investments, employee investment funds, and various private equity funds which we sponsor. Private equity investments include various private equity fund investments including Raymond James Employee Investment Funds I and II (collectively, the “Private Funds”). See Note 11 for further discussion of the consolidation of the Raymond James Employee Investment Funds I and II which are variable interest entities. These Private Funds invest in new and developing companies. Our investments in these Private Funds cannot be redeemed directly with the funds; our investment is monetized through distributions received through the liquidation of the underlying assets of those funds. We estimate that the underlying assets of these funds will be liquidated over the life of these funds (typically 10 to 15 years). Approval by the management of these funds is required for us to sell or transfer these investments. See Note 20 for information regarding our unfunded commitments to these funds. Merchant banking investments include ownership interests in private companies with long-term growth potential. These investments are measured at fair value with any changes recognized in our Consolidated Statements of Income and Comprehensive Income. | ||
The valuation of these investments requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity and long-term nature of these assets. As a result, these values cannot be determined with precision and the calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. | ||
Private equity investments are carried at estimated fair value. They are valued initially at the transaction price until significant transactions or developments indicate that a change in the carrying values of these investments is appropriate. The carrying values of these investments are adjusted based on financial performance, investment-specific events, financing and sales transactions with third parties and/or discounted cash flow models incorporating changes in market outlook. Investments in funds structured as limited partnerships are generally valued based on our proportionate share of the net assets of the partnership as provided by the fund manager. Investments valued using these valuation techniques are classified within Level 3 of the fair value hierarchy. | ||
Other investments | ' | |
Other investments | ||
Other investments consist primarily of marketable securities we hold that are associated with a deferred compensation program which was formerly sponsored by MK & Co., term deposits with Canadian financial institutions, or investments in other securities arising from the operations of RJ Ltd., and certain investments in limited partnerships (or funds) for which in a number of instances, one of our affiliates serves as the managing member or general partner (see Note 11 for information regarding such funds). | ||
Certain employees, who were at one-time associated with MK & Co., participate in deferred compensation plans. The balances associated with these plans are invested in certain marketable securities that are held by RJF until the vesting date, typically five years from the date of the deferral. A liability associated with these deferrals is reflected as a component of our trade and other liabilities on our Consolidated Statements of Financial Condition. We use quoted prices in active markets to determine the fair value of these investments. Such instruments are classified within Level 1 of the fair value hierarchy. | ||
Canadian financial institution term deposits are recorded at cost which approximates market value. These investments are classified within Level 1 of the fair value hierarchy. Certain other investments in financial instruments held by RJ Ltd. include non-agency ABS that have little, if any, market activity and are measured using our best estimate of fair value, where the inputs into the determination of fair value are both significant to the fair value measurement and unobservable. These valuations require significant judgment or estimation and are classified within Level 3 of the fair value hierarchy. | ||
The valuation of the investments in limited partnerships and funds requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity and long-term nature of these assets. As a result, these values cannot be determined with precision and the calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. Such instruments are classified within Level 3 of the fair value hierarchy. | ||
See Notes 5 and 6 for the outcome of the application of these fair value policies and procedures. | ||
Brokerage client receivables, loans to financial advisors and allowance for doubtful accounts | ' | |
Brokerage client receivables, loans to financial advisors and allowance for doubtful accounts | ||
Brokerage client receivables include receivables from the clients of our broker-dealer and asset management subsidiaries. The receivables from broker-dealer clients are principally for amounts due on cash and margin transactions and are generally collateralized by securities owned by the clients. The receivables from asset management clients are primarily for accrued investment advisory fees. Both the receivables from the asset management and broker-dealer clients are reported at their outstanding principal balance, adjusted for any allowance for doubtful accounts. When a broker-dealer receivable is considered to be impaired, the amount of the impairment is generally measured based on the fair value of the securities acting as collateral, which is measured based on current prices from independent sources such as listed market prices or broker-dealer price quotations. Securities beneficially owned by customers, including those that collateralize margin or other similar transactions, are not reflected in our Consolidated Statements of Financial Condition. | ||
We offer loans to financial advisors and certain key revenue producers, primarily for recruiting and retention purposes. These loans are generally repaid over a five to eight year period with interest recognized as earned. There is no fee income associated with these loans. We assess future recoverability of these loans through analysis of individual financial advisor production or other performance standards. Based upon the nature of these financing receivables, we do not analyze this asset on a portfolio segment or class basis. Further, the aging of this receivable balance is not a determinative factor in computing our allowance for doubtful accounts, as concerns regarding the recoverability of these loans primarily arise in the event that the financial advisor is no longer affiliated with us. In the event that the financial advisor is no longer affiliated with us, any unpaid balance of such loan becomes immediately due and payable to us. In determining the allowance for doubtful accounts related to former employees or independent contractors, management considers a number of factors including: any amounts due at termination, the reasons for the terminated relationship, the former financial advisor’s overall financial position, and our historical collection experience. When the review of these factors indicates that further collection activity is highly unlikely, the outstanding balance of such loan is written-off and the corresponding allowance is reduced. We present the outstanding balance of loans to financial advisors on our Consolidated Statements of Financial Condition, net of their applicable allowances for doubtful accounts. The allowance for doubtful accounts balance associated with all of our loans to financial advisors is $2.8 million and $2.5 million at September 30, 2013 and 2012, respectively. Of the September 30, 2013 loans to financial advisors, the portion of the balance associated with financial advisors who are no longer affiliated with us, after consideration of the allowance for doubtful accounts, is approximately $2.4 million. | ||
Securities borrowed and securities loaned | ' | |
Securities borrowed and securities loaned | ||
Securities borrowed and securities loaned transactions are reported as collateralized financings and recorded at the amount of collateral advanced or received. In securities borrowed transactions, we are generally required to deposit cash with the lender. With respect to securities loaned, we generally receive collateral in the form of cash in an amount in excess of the market value of securities loaned. We monitor the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. | ||
Bank loans and allowances for losses | ' | |
Bank loans and allowances for losses | ||
Loans held for investment | ||
Bank loans are comprised of loans originated or purchased by RJ Bank and include commercial and industrial (“C&I”) loans, commercial and residential real estate loans, as well as consumer loans, which are primarily comprised of loans fully collateralized by the borrower’s marketable securities. Those loans, which we have the intent and the ability to hold until maturity or payoff, are recorded at their unpaid principal balance plus any premium paid in connection with the purchase of the loan, less the allowance for loan losses and any discounts received in connection with the purchase of the loan and net of deferred fees and costs on originated loans. Syndicated loans purchased in the secondary market are recognized as of the trade date. Interest income is recognized on an accrual basis. | ||
Loan origination fees and direct costs, as well as premiums and discounts on loans that are not revolving, are capitalized and recognized in interest income using the interest method. For revolving loans, the straight-line method is used based on the contractual term. Loan commitment fees are generally deferred, and when exercised, recognized as a yield adjustment over the life of the loan. | ||
RJ Bank segregates its loan portfolio into five portfolio segments, C&I, commercial real estate (“CRE”), CRE construction, residential mortgage and consumer. These portfolio segments also serve as the portfolio loan classes for purposes of credit analysis, except for residential mortgage loans which are further disaggregated into residential first mortgage and residential home equity classes. | ||
Loans held for sale | ||
Certain residential mortgage loans originated and intended for sale in the secondary market due to their fixed-rate terms are carried at the lower of cost or estimated fair value. The fair value of the residential mortgage loans held for sale are estimated using observable prices obtained from counterparties for similar loans. These nonrecurring fair value measurements are classified within Level 2 of the fair value hierarchy. Gains and losses on sales of these assets are included as a component of other revenue, while interest collected on these assets is included in interest income. Net unrealized losses are recognized through a valuation allowance by charges to income as a component of other revenue in the Consolidated Statements of Income and Comprehensive Income. Corporate loans are designated as held for investment upon inception and recognized in loans receivable. If we subsequently designate a corporate loan as held for sale, which generally occurs as part of a loan workout situation, we then write down the carrying value of the loan with a partial charge-off, if necessary, to carry it at the lower of cost or estimated fair value. | ||
RJ Bank purchases the guaranteed portions of SBA section 7(a) loans and accounts for these loans in accordance with the policy for loans held for sale. RJ Bank then aggregates SBA loans with similar characteristics into pools for securitization and sale to the secondary market. Individual loans may be sold prior to securitization. The determination of the fair value of the SBA loans depend upon their intended disposition. The fair value of the SBA loans to be individually sold are determined based upon their committed sales price. The fair value of loans to be aggregated into pools for securitization which are committed to be sold, are determined based upon third party price quotes. The fair value of all other SBA loans are determined using a third party pricing service. The prices for the SBA loans, other than those committed to be individually sold, are validated by comparing the third party price quote or the third party pricing service prices, as applicable, for a sample of loans to observable market trades obtained from external sources. Once the loans are securitized into a pool, the respective securities are classified as trading instruments and are carried at fair value based on RJ Bank’s intention to sell the securitizations within the near term. Any changes in the fair value of the securitized pools as well as any realized gains or losses earned thereon are reflected in net trading profits. Transfers of the securitizations are all accounted for as sales at settlement date when RJ Bank has surrendered control over the transferred assets. RJ Bank does not retain any interest in the securitizations once they are sold. | ||
Off-balance sheet loan commitments | ||
RJ Bank has outstanding at any time a significant number of commitments to extend credit and other credit-related off-balance sheet financial instruments such as standby letters of credit and loan purchases. RJ Bank’s policy is generally to require customers to provide collateral at the time of closing. The amount of collateral obtained, if it is deemed necessary by RJ Bank upon extension of credit, is based on RJ Bank’s credit evaluation of the borrower. Collateral held varies but may include assets such as: marketable securities, accounts receivable, inventory, real estate, and income-producing commercial properties. | ||
Nonperforming assets | ||
Nonperforming assets are comprised of both nonperforming loans and OREO. Nonperforming loans represent those loans which have been placed on nonaccrual status and loans which have been restructured in a manner that grant a concession to a borrower experiencing financial difficulties; loans with such restructurings are discussed further below. Additionally, any accruing loans which are 90 days or more past due and in the process of collection are considered nonperforming loans. | ||
Loans of all classes are placed on nonaccrual status when we determine that full payment of all contractual principal and interest is in doubt, or the loan is past due 90 days or more as to contractual interest or principal unless the loan, in our opinion, is well-secured and in the process of collection. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is written off against interest income and accretion of the net deferred loan origination fees cease. Interest is recognized using the cash method for residential (first mortgage and home equity) and consumer loans and the cost recovery method for corporate (C&I, CRE and CRE construction) loans thereafter until the loan qualifies for return to accrual status. Loans are returned to an accrual status when the loans have been brought contractually current with the original or amended terms and have been maintained on a current basis for a reasonable period, generally six months. | ||
Other real estate acquired in the settlement of loans, including through, or in lieu of, loan foreclosure, is initially recorded at the lower of cost or fair value less estimated selling costs through a charge to the allowance for loan losses, thus establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by RJ Bank and the assets are carried at the lower of the carrying amount or fair value, as determined by a current appraisal, or valuation less estimated costs to sell and are classified as other assets on the Consolidated Statements of Financial Condition. These nonrecurring fair value measurements are classified within Level 2 of the fair value hierarchy. Costs relating to development and improvement of the property are capitalized, whereas those relating to holding the property are charged to operations. Sales of OREO are recorded as of the settlement date and any associated gains or losses are included in other revenue on our Consolidated Statements of Income and Comprehensive Income. | ||
Troubled debt restructurings | ||
A loan restructuring is deemed to be a troubled debt restructuring (“TDR”) if we, for economic or legal reasons related to the borrowers’ financial difficulties, grant a concession we would not otherwise consider. In TDRs, for all classes of loans, the concessions granted, such as interest rate reductions, generally do not reflect current market conditions for a new loan of similar risk made to another borrower in similar financial circumstances. Other concessions for C&I, CRE and CRE construction loans may also include the reduction of the guarantor’s liability. For those restructurings of first mortgage and home equity residential mortgage loans which may reflect current market conditions, the concessions granted by RJ Bank are generally interest capitalization, principal forbearance, release of liability ordered under Chapter 7 bankruptcy not reaffirmed by the borrower, or an extension of the interest-only or maturity period. First mortgage and home equity residential mortgage TDRs may be returned to accrual status when there has been a sustained period of six months of satisfactory performance. C&I, CRE and CRE construction TDRs have generally been partially charged-off and, therefore, remain on nonaccrual status until the loan is fully resolved. | ||
Impaired loans | ||
Loans in all classes are considered to be impaired when, based on current information and events, it is probable that RJ Bank will be unable to collect the scheduled payments of principal and interest on a loan when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. RJ Bank determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. For individual loans identified as impaired, impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate and taking into consideration the factors described below in relation to the evaluation of the allowance for loan losses, except that as a practical expedient, RJ Bank measures impairment based on the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Impaired loans include all corporate nonaccrual loans, all residential mortgage nonaccrual loans for which a charge-off had previously been recorded, and all loans which have been modified in TDRs. Interest income on impaired loans is recognized consistently with the recognition policy of nonaccrual loans. | ||
Allowance for loan losses and reserve for unfunded lending commitments | ||
RJ Bank maintains an allowance for loan losses to provide for probable losses inherent in RJ Bank’s loan portfolio. Loan losses are charged against the allowance when RJ Bank believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | ||
RJ Bank has developed policies and procedures for assessing the adequacy of the allowance for loan losses that reflects the assessment of risk considering all available information. In developing this assessment, RJ Bank relies on estimates and exercises judgment in evaluating credit risk. The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Depending on changes in circumstances, future assessments of credit risk may yield materially different results from the prior estimates, which may require an increase or a decrease in the allowance for loan losses. | ||
This allowance for loan loss is comprised of two components: allowances calculated based on formulas for homogenous classes of loans collectively evaluated for impairment, and specific allowances assigned to certain classified loans individually evaluated for impairment. These homogeneous classes are a result of management’s disaggregation of the loan portfolio and are comprised of the previously mentioned classes: C&I, CRE, CRE construction, residential first mortgage, residential home equity, and consumer. | ||
The loans within the C&I, CRE and CRE construction classes are assigned to one of several internal loan grades based upon the respective loan’s credit characteristics. The loans within the residential first mortgage, residential home equity, and consumer classes are assigned loan grades equivalent to the loan classifications utilized by bank regulators, dependent on their respective likelihood of loss. We assign each loan grade for all loan classes an allowance percentage based on the perceived risk associated with that grade. The allowance for loan losses for all non-impaired loans is then calculated based on the reserve percentage assigned to the respective loan’s class and grade. The allowance for loan losses for all impaired loans (except those nonaccrual residential first mortgage loans which are collectively evaluated for impairment) is based on an individual evaluation of impairment as previously described in the “Impaired loans” section above. | ||
The qualitative and quantitative factors taken into consideration when assigning the loan grades and allowance percentages to the loans within the C&I, CRE and CRE construction loan classes include: estimates of borrower default probabilities and collateral values; trends in delinquencies; volume and terms; changes in geographic distribution, updated loan-to-value (“LTV”) ratios, lending policies, experience, ability and depth of lending management and other relevant staff, local, regional, national and international economic conditions; concentrations of credit risk; past loss history, Shared National Credit (“SNC”) reviews and examination results from bank regulators. Loan grades for individual C&I, CRE and CRE construction loans are derived from analyzing two aspects of the risk factors in a particular loan, the obligor rating and the facility (collateral) rating. The obligor rating relates to a borrower’s probability of default and the facility rating is utilized to estimate the anticipated loss given default. These two ratings, which are based on RJ Bank’s most recent two years historical loss data or historical long-term industry loss rates where RJ Bank has limited loss history, are considered in combination to derive the final C&I, CRE and CRE construction loan grades and allowance percentages. Qualitative factors, while considered and reviewed in establishing the allowance for loan losses, have generally not resulted in any significant quantitative adjustments to allowance percentages. | ||
For residential first mortgage, residential home equity and consumer loan classes, the qualitative factors considered when assigning allowance percentages include loan performance trends, loan product parameters and qualification requirements, borrower credit scores at origination, occupancy (i.e., owner occupied, second home or investment property), documentation level, loan purpose, geographic concentrations, average loan size and loan policy exceptions. These qualitative factors, while considered and reviewed in establishing the allowance for loan losses, have generally not resulted in any quantitative adjustments to RJ Bank’s historical loss rates. | ||
Historical loss rates, a quantitative factor, is utilized when assigning the allowance percentages for residential first mortgage, residential home equity and consumer loans, and are derived from estimates of the probability of default and loss given default (severity). These estimated loss rates are based on RJ Bank’s historical loss data from the eight quarters prior to the respective quarter-end. In addition to historical loss rates, one other quantitative factor utilized for the performing residential mortgage loan portfolio is updated LTV ratios. RJ Bank segregates the performing loans in the residential loan classes, on a quarterly basis, based upon updated LTV data. RJ Bank obtains the most recently available information (generally on a quarter-lag) to estimate the current LTV ratios on the individual loans in the residential mortgage loan portfolio. Current LTVs are estimated, on a loan by loan basis, utilizing the initial appraisal obtained at the time of origination, adjusted for housing price changes that have occurred since origination using current valuation indices. The value of the homes could vary from actual market values due to changes in the condition of the underlying property, variations in housing price changes within current valuation indices and other factors. The product of the default and loss severity percentages is then applied to the balance of residential first mortgages and residential home equity loan balances, which have been further stratified by updated LTV in order to calculate the related allowance for loan losses. | ||
As TDRs, regardless of the loan portfolio segment or accrual status, are impaired loans, RJ Bank evaluates its credit risk on an individual loan basis. The amount of impairment recorded on these loans is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, or if collateral dependent, based on the fair value of the collateral, less costs to sell. In addition, all redefaults (60 or more days delinquent subsequent to the loan’s modification date) on TDRs are factored into each portfolio segments’ allowance for loan losses. Qualitative information, such as geographic area and industry for TDRs and redefaulted TDRs, is considered and reviewed in the determination of expected loss rates as discussed above. | ||
RJ Bank reserves for potential losses inherent in its unfunded lending commitments using a methodology similar to that used for loans in the respective portfolio segment, based upon loan grade and expected funding probabilities for fully binding commitments. This will result in some reserve variability over different periods depending upon the mix of the loan portfolio at the time and future funding expectations. All classes of impaired loans which have unfunded lending commitments are analyzed in conjunction with the impaired reserve process described above. This reserve for unfunded lending commitments is reflected in other liabilities in our Consolidated Statements of Financial Condition. | ||
Loan charge-off policies | ||
C&I, CRE and CRE construction loans are monitored on an individual basis, and loan grades are reviewed at least quarterly to ensure they reflect the loan’s current credit risk. When RJ Bank determines that it is likely a corporate loan will not be collected in full, the loan is evaluated for potential impairment. After consideration of the borrower’s ability to restructure the loan, alternative sources of repayment, and other factors affecting the borrower’s ability to repay the debt, the portion of the loan deemed to be a confirmed loss, if any, is charged-off. For collateral-dependent loans secured by real estate, the amount of the loan considered a confirmed loss and charged-off is generally equal to the difference between the recorded investment in the loan and the collateral’s appraised value less estimated costs to sell. In instances where the individual loan under evaluation is agented by another bank, and where the agent bank has not ordered a timely update of an outdated appraisal, RJ Bank may make adjustments to previous appraised values for purposes of calculating specific reserves or taking partial charge-offs. These impaired loans are then considered to be in a workout status and we evaluate, on an ongoing basis, all factors relevant in determining the collectability and fair value of the loan. Appraisals on these impaired loans are obtained early in the impairment process as part of determining fair value and are updated as deemed necessary given the facts and circumstances of each individual situation. Certain factors such as guarantor recourse, additional borrower cash contributions or stable operations will mitigate the need for more frequent than annual appraisals. In its ongoing evaluation of each individual loan, RJ Bank may consider more frequent appraisals in locations where commercial property values are known to be experiencing a greater amount of volatility. For C&I loans, RJ Bank evaluates all sources of repayment, including the estimated liquidation value of collateral, to arrive at the amount considered to be a loss and charged off. Corporate banking and credit risk managers also hold a monthly meeting to review criticized loans (loans that are rated special mention or worse as defined by bank regulators, see Note 9 for further discussion). Additional charge-offs are taken when the value of the collateral changes or there is an adverse change in the expected cash flows. | ||
The majority of RJ Bank’s corporate loan portfolio is comprised of participations in either SNCs or other large syndicated loans in the U.S. or Canada. The SNCs are U.S. loan syndications totaling over $20 million that are shared between three or more regulated institutions. Most SNC loans are reviewed annually by the agent bank’s regulator, a process in which the other participating banks have no involvement. Once the SNC annual regulatory review process is complete, RJ Bank receives a summary of the review of these SNC credits from the Office of the Comptroller of the Currency (“OCC”). This summary includes a synopsis of each loan’s regulatory classification, loans that are designated for nonaccrual status and directed charge-offs. RJ Bank must be at least as critical with nonaccrual designations, directed charge-offs, and classifications as the OCC. This ensures that each bank participating in a SNC loan rates the loan at least as critical. Any classification changes may impact RJ Bank’s reserves and charge-offs during the quarter that the SNC information is received from the OCC, however, these differences in classifications are generally minimal given the size of the SNC loan portfolio. The amount of such adjustments depend upon the classification and whether RJ Bank had the loan classified differently (either more or less critically) than the SNC review findings and, therefore, could result in higher, lower, or no change in loan loss provisions than previously recorded. RJ Bank incorporates into its ratings process any observed regulatory trends in the annual SNC exam process, but there will inherently be differences of opinion on individual credits due to the high degree of judgment involved. With respect to its ongoing credit evaluation process of the SNC portfolio, RJ Bank conforms to what it believes will be the regulators’ view of individual credits. | ||
Every residential mortgage and consumer loan over 60 days past due is reviewed by RJ Bank personnel monthly and documented in a written report detailing delinquency information, balances, collection status, appraised value and other data points. RJ Bank senior management meets monthly to discuss the status, collection strategy and charge-off/write-down recommendations on every residential mortgage or consumer loan over 60 days past due with charge-offs considered on residential mortgage loans once the loans are delinquent 90 days or more and then generally taken before the loan is 120 days past due. A charge-off is taken against the allowance for the difference between the loan amount and the amount that RJ Bank estimates will ultimately be collected, based on the value of the underlying collateral less estimated costs to sell. RJ Bank predominantly uses broker price opinions (“BPO”) for these valuations as access to the property is restricted during the collection and foreclosure process and there is insufficient data available for a full appraisal to be performed. BPOs contain relevant and timely sale comparisons and listings in the marketplace and, therefore, we have found these BPOs to be reasonable determinants of market value in lieu of appraisals and more reliable than an automated valuation tool or the use of tax assessed values. A full appraisal is obtained post-foreclosure. RJ Bank takes further charge-offs against the owned asset if an appraisal has a lower valuation than the original BPO, but does not reverse previously charged-off amounts if the appraisal is higher than the original BPO. If a loan remains in pre-foreclosure status for more than nine months, an updated valuation is obtained and further charge-offs are taken against the allowance for loan losses, if necessary. | ||
Other assets | ' | |
Other assets | ||
RJ Bank carries investments in stock of the FHLB and the Federal Reserve Bank of Atlanta (the “FRB”) at cost. These investments are held in accordance with certain membership requirements, are restricted, and lack a market. FHLB and FRB stock can only be sold to the issuer or another member institution at its par value. RJ Bank annually evaluates its holdings in FHLB and FRB stock for potential impairment based upon its assessment of the ultimate recoverability of the par value of the stock. This annual evaluation is comprised of a review of the capital adequacy, liquidity position and the overall financial condition of the FHLB and FRB to determine the impact these factors have on the ultimate recoverability of the par value of the respective stock. Impairment evaluations are performed more frequently if events or circumstances indicate there may be impairment. Any cash dividends received are recognized as interest income in the Consolidated Statements of Income and Comprehensive Income. | ||
We maintain investments in a significant number of company-owned life insurance policies utilized to fund certain non-qualified deferred compensation plans and other employee benefit plans (see Notes 23 and 24 for information on the non-qualified deferred compensation plans). The life insurance policies are carried at cash surrender value as determined by the insurer. See Note 10 for additional information. | ||
Investments in real estate partnerships held by consolidated variable interest entities | ' | |
Investments in real estate partnerships held by consolidated variable interest entities | ||
Raymond James Tax Credit Funds, Inc., a wholly owned subsidiary of RJF (“RJTCF”), is the managing member or general partner in low-income housing tax credit (“LIHTC”) funds, some of which require consolidation (refer to the separate discussion below of our policies regarding the evaluation of VIEs to determine if consolidation is required). These funds invest in housing project limited partnerships or limited liability companies (“LLCs”) which purchase and develop affordable housing properties qualifying for federal and state low-income housing tax credits. The balance presented is the investment in project partnership balance of all of the LIHTC funds which require consolidation. Additional information is presented below and in Note 11. | ||
Property and equipment | ' | |
Property and equipment | ||
Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation of assets is primarily provided for using the straight-line method over the estimated useful lives of the assets, which range from two to seven years for software, two to five years for furniture, fixtures and equipment and 10 to 31 years for buildings, building components, building improvements and land improvements. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the assets. | ||
Additions, improvements and expenditures that extend the useful life of an asset are capitalized. Expenditures for repairs and maintenance are charged to operations in the period incurred. Gains and losses on disposals of property and equipment are reflected in the Consolidated Statements of Income and Comprehensive Income in the period realized. | ||
Intangible assets | ' | |
Intangible assets | ||
Certain identifiable intangible assets, such as customer relationships, trade names, developed technology we acquire, and non-compete agreements, are amortized over their estimated useful lives on a straight-line method, are evaluated for potential impairment whenever events or changes in circumstances suggest that the carrying value of an asset or asset group may not be fully recoverable. | ||
The rights to service mortgage loans, known as mortgage servicing rights (“MSRs”), are an intangible asset. Our MSRs arise when RJ Bank sells residential mortgage loans and retains the associated mortgage servicing rights. RJ Bank records the estimated fair value of MSRs and amortizes MSRs in proportion to, and over the period of estimated net servicing revenue. MSRs are assessed for impairment quarterly, based on their fair value, with any impairment recognized in our Consolidated Statements of Income and Comprehensive Income. | ||
Goodwill | ' | |
Goodwill | ||
Goodwill represents the cost of acquired businesses in excess of the fair value of the related net assets acquired. GAAP does not provide for the amortization of indefinite-life intangible assets such as goodwill. Rather, these assets are subject to an evaluation of potential impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. Goodwill impairment is determined by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not deemed to be impaired. However, if the estimated fair value is below carrying value, further analysis is required to determine the amount of the impairment. This further analysis involves assigning tangible assets and liabilities, identified intangible assets and goodwill to reporting units and comparing the fair value of each reporting unit to its carrying amount. | ||
In the course of our evaluation of the potential impairment of goodwill, we may perform either a qualitative or a quantitative assessment. Our qualitative assessment of potential impairment may result in the determination that a quantitative impairment analysis is not necessary. Under this elective process, we assess qualitative factors to determine whether the existence of events or circumstances leads us to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after assessing the totality of events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then performing a quantitative analysis is not required. However, if we conclude otherwise, then we perform a quantitative impairment analysis. | ||
If we either choose not to perform a qualitative assessment, or we choose to perform a qualitative assessment but are unable to qualitatively conclude that no impairment has occurred, then we perform a quantitative evaluation. In the case of a quantitative assessment, we estimate the fair value of the reporting unit which the goodwill that is subject to the quantitative analysis is associated (generally defined as the businesses for which financial information is available and reviewed regularly by management) and compare it to the carrying value. If the estimated fair value of a reporting unit is less than its carrying value, we estimate the fair value of all assets and liabilities of the reporting unit, including goodwill. If the carrying value of the reporting unit’s goodwill is greater than the estimated fair value, an impairment charge is recognized for the excess. | ||
We have elected December 31 as our annual goodwill impairment evaluation date (see Note 13 for additional information regarding the outcome of our goodwill impairment assessments). | ||
Legal liabilities | ' | |
Legal liabilities | ||
We recognize liabilities for contingencies when there is an exposure that, when fully analyzed, indicates it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Whether a loss is probable, and if so, the estimated range of possible loss, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and uncertainties. When a range of possible loss can be estimated, we accrue the most likely amount within that range; if the most likely amount of possible loss within that range is not determinable, we accrue a minimum based on the range of possible loss. No liability is recognized for those matters which, in managements judgment, the determination of a reasonable estimate of loss is not possible. | ||
We record liabilities related to legal proceedings in trade and other payables. The determination of these liability amounts requires significant judgment on the part of management. Management considers many factors including, but not limited to: the amount of the claim; the amount of the loss in the client’s account; the basis and validity of the claim; the possibility of wrongdoing on the part of one of our employees or financial advisors; previous results in similar cases; and legal precedents and case law. Each legal proceeding is reviewed with counsel in each accounting period and the liability balance is adjusted as deemed appropriate by management. Lastly, each case is reviewed to determine if it is probable that insurance coverage will apply, in which case the liability is reduced accordingly. Any change in the liability amount is recorded in the consolidated financial statements and is recognized as either a charge, or a credit, to net income in that period. The actual costs of resolving legal proceedings may be substantially higher or lower than the recorded liability amounts for those matters. We expense our cost of defense related to such matters in the period they are incurred. | ||
Share-based compensation | ' | |
Share-based compensation | ||
We account for share-based awards through the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. The compensation cost is recognized over the requisite service period of the awards and is calculated as the market value of the awards on the date of the grant. See Note 23 for additional information. In addition, we account for share-based awards to our independent contractor financial advisors in accordance with guidance applicable to accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services and guidance applicable to accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own stock. Absent a specific performance commitment, share-based awards granted to our independent contractor financial advisors are measured at their vesting date fair value and their fair value estimated at reporting dates prior to that time. The compensation expense recognized each period is based on the most recent estimated value. Further, we classify these non-employee awards as liabilities at fair value upon vesting, with changes in fair value reported in earnings until these awards are exercised or forfeited. For purposes of measuring compensation expense these awards are revalued at each reporting date. See Note 24 for additional information. Compensation expense is recognized for all share-based compensation with future service requirements over the requisite service period using the straight-line method, and in certain instances, the graded attribution method. | ||
Deferred compensation plans | ' | |
Deferred compensation plans | ||
We maintain various deferred compensation plans for the benefit of certain employees and independent contractors that provide a return to the participant based upon the performance of various referenced investments. For certain of these plans, we invest directly, as a principal in such investments, related to our obligations to perform under the deferred compensation plans (see the “Other Investments” discussion within the financial instruments owned, financial instruments sold but not yet purchased and fair value section of this Note 2 for further discussion of these assets). For other such plans, including our Long Term Incentive Plan (“LTIP”) and our Wealth Accumulation Plan, we purchase and hold life insurance on the lives of certain current and former participants to earn a competitive rate of return for participants and to provide a source of funds available to satisfy our obligations under the plan (see Note 10 for information regarding the carrying value of such policies). Compensation expense is recognized for all awards made under such plans with future service requirements over the requisite service period using the straight-line method. Changes in the value of the investments, as well as the expenses associated with the related deferred compensation plans, are recorded in compensation, commissions and benefits expense on our Consolidated Statements of Income and Comprehensive Income. See Notes 23 and 24 for additional information. | ||
Leases | ' | |
Leases | ||
We lease office space and equipment under operating leases. We recognize rent expense related to these operating leases on a straight-line basis over the lease term. The lease term commences on the earlier of the date when we become legally obligated for the rent payments or the date on which we take possession of the property. For tenant improvement allowances and rent holidays, we record a deferred rent liability in other liabilities in the Consolidated Statements of Financial Condition and amortize the deferred rent over the lease term as a reduction to rent expense in the Consolidated Statements of Income and Comprehensive Income. In instances where the office space or equipment under an operating lease will be abandoned prior to the expiration of the lease term (these instances primarily result from the effects of acquisitions), we accrue an estimate of any projected loss in the Consolidated Statements of Income and Comprehensive Income at the time such abandonment is known and any loss is estimable. | ||
Acquisition related expenses | ' | |
Acquisition related expense | ||
Acquisition related expenses are recorded in the Consolidated Statement of Income and Comprehensive Income and include certain incremental expenses associated with our acquisition transactions (predominately associated with our Morgan Keegan acquisition), as well as incremental costs to integrate our operations and those of Morgan Keegan. These costs do not represent recurring costs within the fully integrated combined organization. | ||
Foreign currency translation | ' | |
Foreign currency translation | ||
We consolidate our foreign subsidiaries and certain joint ventures in which we hold an interest. The statement of financial condition of the subsidiaries and joint ventures we consolidate are translated at exchange rates as of the period end. The statements of income are translated at an average exchange rate for the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars are included in other comprehensive income and are thereafter presented in equity as a component of AOCI. The translation gains or losses related to RJ Bank’s U.S. subsidiaries’ net investment in their Canadian subsidiary are tax affected to the extent the Canadian subsidiary’s earnings will be repatriated to the U.S. | ||
Income taxes | ' | |
Income taxes | ||
The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year. We utilize the asset and liability method to provide income taxes on all transactions recorded in the consolidated financial statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that we expect to be in effect when the underlying items of income and expense are realized. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns, including the repatriation of undistributed earnings of foreign subsidiaries. Variations in the actual outcome of these future tax consequences could materially impact our financial position, results of operations, or liquidity. See Note 19 for further information on our income taxes. | ||
Earnings per share (EPS) | ' | |
Earnings per share (“EPS”) | ||
Basic EPS is calculated by dividing earnings available to common shareholders by the weighted-average number of common shares outstanding. Earnings available to common shareholders’ represents Net Income Attributable to Raymond James Financial, Inc. reduced by the allocation of earnings and dividends to participating securities. Diluted EPS is similar to basic EPS, but adjusts for the dilutive effect of outstanding stock options by application of the treasury stock method. | ||
Variable interest entities | ' | |
Evaluation of VIEs to determine whether consolidation is required | ||
A VIE requires consolidation by the entity’s primary beneficiary. Examples of entities that may be VIEs include certain legal entities structured as corporations, partnerships or limited liability companies. | ||
We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. We hold variable interests in the following VIE’s: Raymond James Employee Investment Funds I and II (the “EIF Funds”), a trust fund established for employee retention purposes (“Restricted Stock Trust Fund”), certain LIHTC funds (“LIHTC Funds”), various other partnerships and LLCs involving real estate (“Other Real Estate Limited Partnerships and LLCs”), certain new market tax credit funds (“NMTC Funds”), and certain funds formed for the purpose of making and managing investments in securities of other entities (“Managed Funds”). | ||
Determination of the primary beneficiary of a VIE | ||
We assess VIEs for consolidation when we hold variable interests in the entity. We consolidate the VIEs that are subject to assessment when we are deemed to be the primary beneficiary of the VIE. The process for determining whether we are the primary beneficiary of the VIE is to conclude whether we are a party to the VIE holding a variable interest that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE, and (2) has the obligations to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. | ||
Fiscal year 2011 impact of the adoption of new accounting consolidation guidance | ||
In fiscal year 2011, we adopted new accounting guidance regarding the consolidation of VIEs. This new guidance enacted changes in determining the primary beneficiary of a VIE and increased the frequency of required reassessments to determine whether an entity is the primary beneficiary of a VIE. Prior to this new accounting guidance, our determination of whether we were the primary beneficiary of a VIE was based upon whether we were the party to the VIE that absorbed a majority of the VIE’s expected losses, received a majority of its expected residual returns, or both. As a result of the application of the new accounting guidance, during the year ended September 30, 2011, we: | ||
(1) Deconsolidated two LIHTC Funds in which RJTCF had been deemed to be the primary beneficiary under the prior accounting guidance. These two entities had consolidated assets of approximately $3.5 million and no consolidated liabilities. Within equity, their deconsolidation resulted in an after-tax cumulative effect adjustment to retained earnings and noncontrolling interests of $3.3 million and $6.8 million, respectively. | ||
(2) Consolidated two LIHTC Funds in which RJTCF is deemed to be the primary beneficiary under the new accounting guidance. These two entities had consolidated assets of $56.8 million and consolidated liabilities of $42.1 million, and since we hold less than a 1% interest in these entities, the equity impact of their consolidation was a $14.7 million increase in noncontrolling interests. | ||
EIF Funds | ||
The EIF Funds are limited partnerships for which we are the general partner. The EIF Funds invest in certain of our private equity activities as well as other unaffiliated venture capital limited partnerships. The EIF Funds were established as compensation and retention measures for certain of our key employees. We are deemed to be the primary beneficiary and, accordingly, we consolidate the EIF Funds. | ||
Restricted Stock Trust Fund | ||
We utilize a trust in connection with certain of our restricted stock unit awards. This trust fund was established and funded for the purpose of acquiring our common stock in the open market to be used to settle restricted stock units granted as a retention vehicle for certain employees of our Canadian subsidiary. We are deemed to be the primary beneficiary and, accordingly, consolidate this trust fund. | ||
LIHTC Funds | ||
RJTCF is the managing member or general partner in a number of LIHTC Funds having one or more investor members or limited partners. These low-income housing tax credit funds are organized as LLCs or limited partnerships for the purpose of investing in a number of project partnerships, which are limited partnerships or LLCs that in turn purchase and develop low-income housing properties qualifying for tax credits. | ||
Our determination of the primary beneficiary of each tax credit fund in which RJTCF has a variable interest requires judgment and is based on an analysis of all relevant facts and circumstances, including: (1) an assessment of the characteristics of RJTCF’s variable interest and other involvements it has with the tax credit fund, including involvement of related parties and any de facto agents, as well as the involvement of other variable interest holders, namely, limited partners or investor members, and (2) the tax credit funds’ purpose and design, including the risks that the tax credit fund was designed to create and pass through to its variable interest holders. In the design of tax credit fund VIEs, the overriding premise is that the investor members invest solely for tax attributes associated with the portfolio of low-income housing properties held by the fund, while RJTCF, as the managing member or general partner of the fund, is responsible for overseeing the fund’s operations. | ||
Non-guaranteed low-income housing tax credit funds | ||
As the managing member or general partner of the fund, except for one guaranteed fund discussed below, RJTCF does not provide guarantees related to the delivery or funding of tax credits or other tax attributes to the investor members or limited partners of tax credit funds. The investor member(s) or limited partner(s) of the VIEs bear the risk of loss on their investment. Additionally, under the tax credit funds’ designed structure, the investor member(s) or limited partner(s) receive nearly all of the tax credits and tax-deductible loss benefits designed to be delivered by the fund entity, as well as a majority of any proceeds upon a sale of a project partnership held by a tax credit fund (fund level residuals). RJTCF earns fees from the fund for its services in organizing the fund, identifying and acquiring the project partnership investments, ongoing asset management fees, and a share of any residuals arising from sale of project partnerships upon the termination of the fund. | ||
The determination of whether RJTCF is the primary beneficiary of any of the non-guaranteed LIHTC Funds in which it holds a variable interest is primarily dependent upon: (1) the analysis of whether the other variable interest holders in the tax credit fund hold significant participating rights over the activities that most significantly impact the tax credit funds’ economic performance, and/or (2) whether RJTCF has an obligation to absorb losses of, or the right to receive benefits from, the tax credit fund VIE which could potentially be significant to the fund. | ||
RJTCF sponsors two general types of non-guaranteed tax credit funds: either non-guaranteed single investor funds, or non-guaranteed multi-investor funds. In single investor funds, RJTCF has concluded that the one single investor member or limited partner in such funds has significant participating rights over the activities that most significantly impact the economics of the fund and therefore RJTCF, as managing member or general partner of such funds, does not have the power over such activities. Accordingly, RJTCF is not deemed to be the primary beneficiary of such single investor funds and these funds are not consolidated. | ||
In multi-investor funds, RJTCF has concluded that since the participating rights over the activities that most significantly impact the economics of the fund are not held by one single investor, RJTCF is deemed to have the power over such activities. RJTCF then assesses whether its projected benefits to be received from the multi-investor funds, primarily from ongoing asset management fees or its share of any residuals upon the termination of the fund, are potentially significant to the fund. RJTCF is deemed to be the primary beneficiary, and therefore consolidates, any multi-investor fund for which it concludes that such benefits are potentially significant to the fund. | ||
Among the LIHTC Fund entities evaluated, RJTCF determined that some of the LIHTC Funds it sponsors are not VIEs. These funds are either: (1) funds which RJTCF holds a significant interest (one of which typically holds interests in certain tax credit limited partnerships for less than 90 days, or until beneficial interest in the limited partnership or fund is sold to third parties), or (2) are single investor LIHTC Funds in which RJTCF holds an interest, but the LIHTC Fund does not meet the VIE determination criteria. | ||
RJ Bank is an investor member in a LIHTC fund in which a subsidiary of RJTCF is the managing member. Although this fund was determined not to be a VIE, RJ Bank is consolidating this fund through the application of other applicable accounting guidance. | ||
See Note 20 for discussion of our commitments related to RJTCF. | ||
Guaranteed LIHTC fund | ||
In conjunction with one of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has provided the investor members with a guaranteed return on their investment in the fund (the “Guaranteed LIHTC Fund”). As a result of this guarantee obligation, RJTCF has determined that it is the primary beneficiary of, and accordingly consolidates, this guaranteed multi-investor fund. See Note 20 for further discussion of the guarantee obligation. | ||
Other real estate limited partnerships and LLCs | ||
We have a variable interest in several limited partnerships involved in various real estate activities in which one of our subsidiaries is either the general partner or a limited partner. In addition, RJ Bank may have a variable interest in LLCs involved in foreclosure or obtaining deeds in lieu of foreclosure, as well as the disposal of the collateral associated with impaired syndicated loans. Given that we do not have the power to direct the activities that most significantly impact the economic performance of these partnerships or LLCs, we have determined that we are not the primary beneficiary of these VIEs. Accordingly, we do not consolidate these partnerships or LLCs. The carrying value of our investment in these partnerships or LLCs represents our risk of loss. | ||
New market tax credit funds | ||
An entity which was at one time an affiliate of Morgan Keegan is the managing member of a number of NMTC Funds. NMTC Funds are organized as LLC’s for the purpose of investing in eligible projects in qualified low-income areas or that serve qualified targeted populations. In return for making a qualified equity investment into the NMTC Fund, the Fund’s investor member receives tax credits eligible to apply against their federal tax liability. These new market tax credits are taken by the investor member over a seven year period. | ||
Each of these NMTC Funds have one investor member. We have concluded that in each of the NMTC Funds, the investor member of such funds has significant participating rights over the activities that most significantly impact the economics of the NMTC Fund and, therefore, our affiliate as the managing member of the NMTC Fund does not have the power over such activities. Accordingly, we are not deemed to be the primary beneficiary of these NMTC Funds and, therefore, they are not consolidated. | ||
Managed Funds | ||
We have two subsidiaries (a subsidiary of Howe Barnes and a subsidiary of ClariVest), that serve as the general partner in funds which we determined to be VIEs that we are not required to consolidate. We are not required to consolidate these funds since they each satisfy the conditions for deferral of the determination of who is the primary beneficiary and therefore, who has the obligation to consolidate. These funds meet the deferral criteria as: 1) these funds’ primary business activity involves investment in the securities of other entities not under common management for current income, appreciation or both; 2) ownership in the funds is represented by units of investments to which proportionate shares of net assets can be attributed; 3) the assets of the funds are pooled to avail owners of professional management; 4) the funds are the primary reporting entities; and 5) the funds do not have an obligation (explicit or implicit) to fund losses of the entities that could be potentially significant. |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) (Morgan Keegan [Member]) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Morgan Keegan [Member] | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Acquisition Related Expenses | ' | ||||||||
We incurred the following acquisition related expenses: | |||||||||
Year ended September 30, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Information systems integration and conversion costs (1) | $ | 33,021 | $ | 14,542 | |||||
Occupancy and equipment (2) | 15,999 | 4,803 | |||||||
Severance (3) | 12,734 | 18,729 | |||||||
Temporary services | 4,106 | 1,128 | |||||||
Financial advisory fees | 1,176 | 7,040 | |||||||
Legal | 476 | 2,267 | |||||||
Bridge financing agreement fees | — | 5,684 | |||||||
Other integration costs | 5,942 | 5,091 | |||||||
Total acquisition related expenses | $ | 73,454 | $ | 59,284 | |||||
-1 | Includes equipment costs related to the disposition of information systems equipment, and temporary services incurred specifically related to the information systems conversion. | ||||||||
-2 | Includes lease costs associated with the abandonment of certain facilities resulting from the Morgan Keegan acquisition. | ||||||||
-3 | Represents all costs associated with eliminating positions as a result of the Morgan Keegan acquisition, partially offset by the favorable impact arising from the forfeiture of any unvested accrued benefits. |
CASH_AND_CASH_EQUIVALENTS_ASSE1
CASH AND CASH EQUIVALENTS, ASSETS SEGREGATED PURSUANT TO REGULATIONS AND DEPOSITS WITH CLEARING ORGANIZATIONS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||
Cash and Cash Equivalents | ' | |||||||
Our cash and cash equivalents, assets segregated pursuant to regulations and other segregated assets, and deposits with clearing organization balances are as follows: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash and cash equivalents: | ||||||||
Cash in banks | $ | 2,593,890 | $ | 1,973,897 | ||||
Money market fund investments | 2,726 | 6,123 | ||||||
Total cash and cash equivalents (1) | 2,596,616 | 1,980,020 | ||||||
Cash segregated pursuant to federal regulations and other segregated assets (2) | 4,064,827 | 2,784,199 | ||||||
Deposits with clearing organizations (3) | 126,405 | 163,848 | ||||||
$ | 6,787,848 | $ | 4,928,067 | |||||
-1 | The total amounts presented include cash and cash equivalents of $1.02 billion and $539 million as of September 30, 2013 and 2012, respectively, which are either held directly by RJF or are otherwise invested by one of our subsidiaries on behalf of RJF, and are available without restrictions. | |||||||
-2 | Consists of cash maintained in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934. RJ&A (and MK & Co. as of September 30, 2012) as broker-dealers carrying client accounts as of each respective date, are subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of their clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. | |||||||
-3 | Consists of deposits of cash and cash equivalents or other short-term securities held by other clearing organizations or exchanges. |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring and nonrecurring basis are presented below: | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | Quoted prices | Significant | Significant | Netting | Balance as of | ||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | adjustments (2) | September 30, | |||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | 2013 | ||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) (1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Assets at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 10 | $ | 202,816 | $ | — | $ | — | $ | 202,826 | |||||||||||||||||||||||||||||||||||||
Corporate obligations | 833 | 59,573 | — | — | 60,406 | ||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations | 6,408 | 106,988 | — | — | 113,396 | ||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | 155 | 92,994 | — | — | 93,149 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency CMOs and ABS | — | 16,957 | 14 | — | 16,971 | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 7,406 | 479,328 | 14 | — | 486,748 | ||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 89,633 | — | (61,524 | ) | 28,109 | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 48,749 | 4,231 | 35 | — | 53,015 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | 1,413 | 6,464 | 3,956 | — | 11,833 | ||||||||||||||||||||||||||||||||||||||||||
Total trading instruments | 57,568 | 579,656 | 4,005 | (61,524 | ) | 579,705 | |||||||||||||||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | — | 326,029 | — | — | 326,029 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency CMOs | — | 128,943 | 78 | — | 129,021 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | 2,076 | — | — | — | 2,076 | ||||||||||||||||||||||||||||||||||||||||||
ARS: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipals | — | — | 130,934 | (3) | — | 130,934 | |||||||||||||||||||||||||||||||||||||||||
Preferred securities | — | — | 110,784 | — | 110,784 | ||||||||||||||||||||||||||||||||||||||||||
Total available for sale securities | 2,076 | 454,972 | 241,796 | — | 698,844 | ||||||||||||||||||||||||||||||||||||||||||
Private equity investments | — | — | 216,391 | (4) | — | 216,391 | |||||||||||||||||||||||||||||||||||||||||
Other investments (5) | 241,627 | 2,278 | 4,607 | — | 248,512 | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments associated with offsetting matched book positions | — | 250,341 | — | — | 250,341 | ||||||||||||||||||||||||||||||||||||||||||
Other receivables | — | — | 2,778 | (6) | — | 2,778 | |||||||||||||||||||||||||||||||||||||||||
Other assets | — | — | 15 | — | 15 | ||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 301,271 | $ | 1,287,247 | $ | 469,592 | $ | (61,524 | ) | $ | 1,996,586 | ||||||||||||||||||||||||||||||||||||
Assets at fair value on a nonrecurring basis: (7) | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net: | |||||||||||||||||||||||||||||||||||||||||||||||
Impaired loans | $ | — | $ | 33,187 | $ | 59,868 | $ | — | $ | 93,055 | |||||||||||||||||||||||||||||||||||||
Loans held for sale (8) | — | 28,119 | — | — | 28,119 | ||||||||||||||||||||||||||||||||||||||||||
Total bank loans, net | — | 61,306 | 59,868 | — | 121,174 | ||||||||||||||||||||||||||||||||||||||||||
OREO (9) | — | 209 | — | — | 209 | ||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 61,515 | $ | 59,868 | $ | — | $ | 121,383 | |||||||||||||||||||||||||||||||||||||
(continued on next page) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | Quoted prices | Significant | Significant | Netting | Balance as of | ||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | adjustments (2) | September 30, | |||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | 2013 | ||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) (1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
(continued from previous page) | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments sold but not yet purchased: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 165 | $ | 1,612 | $ | — | $ | — | $ | 1,777 | |||||||||||||||||||||||||||||||||||||
Corporate obligations | 30 | 9,081 | — | — | 9,111 | ||||||||||||||||||||||||||||||||||||||||||
Government obligations | 169,816 | — | — | — | 169,816 | ||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | 3,068 | — | — | — | 3,068 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency MBS and CMOs | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 173,079 | 10,693 | — | — | 183,772 | ||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 74,920 | — | (69,279 | ) | 5,641 | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 31,151 | 92 | — | — | 31,243 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total trading instruments sold but not yet purchased | 204,230 | 85,705 | — | (69,279 | ) | 220,656 | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments associated with offsetting matched book positions | — | 250,341 | — | — | 250,341 | ||||||||||||||||||||||||||||||||||||||||||
Trade and other payables: | |||||||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 714 | — | — | 714 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | — | — | 60 | — | 60 | ||||||||||||||||||||||||||||||||||||||||||
Total trade and other payables | — | 714 | 60 | — | 774 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $ | 204,230 | $ | 336,760 | $ | 60 | $ | (69,279 | ) | $ | 471,771 | ||||||||||||||||||||||||||||||||||||
-1 | We had $860 thousand in transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2013. These transfers were a result of a decrease in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had $401 thousand in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2013. These transfers were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | Where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. | ||||||||||||||||||||||||||||||||||||||||||||||
-3 | Includes $54 million of Jefferson County, Alabama Limited Obligation School Warrants ARS and $25 million of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS. | ||||||||||||||||||||||||||||||||||||||||||||||
-4 | Of the total private equity investments, the weighted-average portion we own is approximately 41%. Effectively, the economics associated with the portions of these investments we do not own become a component of noncontrolling interests on our Consolidated Statements of Financial Condition, and amounted to approximately $63 million of the total as of September 30, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||
-5 | Other investments include $176 million of financial instruments that are related to obligations to perform under certain of MK & Co.’s historic deferred compensation plans (see Note 2 and Note 23 for further information regarding these plans). | ||||||||||||||||||||||||||||||||||||||||||||||
-6 | Primarily comprised of forward commitments to purchase GNMA (as hereinafter defined) MBS arising from our fixed income public finance operations (see Note 20 for additional information regarding these commitments). | ||||||||||||||||||||||||||||||||||||||||||||||
-7 | Goodwill fair value measurements are classified within Level 3 of the fair value hierarchy, which are generally determined using unobservable inputs. See Note 13 for additional information regarding the annual impairment analysis and our methods of estimating the fair value of reporting units that have an allocation of goodwill, including the key assumptions. | ||||||||||||||||||||||||||||||||||||||||||||||
-8 | Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost. | ||||||||||||||||||||||||||||||||||||||||||||||
-9 | Represents the fair value of foreclosed properties which were measured at a fair value subsequent to their initial classification as OREO. The recorded value in the Consolidated Statements of Financial Condition is net of the estimated selling costs. | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | Quoted prices | Significant | Significant | Netting | Balance as of | ||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | adjustments (2) | September 30, | |||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) (1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Assets at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 7 | $ | 346,030 | $ | 553 | $ | — | $ | 346,590 | |||||||||||||||||||||||||||||||||||||
Corporate obligations | 15,916 | 70,815 | — | — | 86,731 | ||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations | 10,907 | 156,492 | — | — | 167,399 | ||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | 1,085 | 104,084 | — | — | 105,169 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency CMOs and ABS | — | 1,986 | 29 | — | 2,015 | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 27,915 | 679,407 | 582 | — | 707,904 | ||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 144,259 | — | (93,259 | ) | 51,000 | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 23,626 | 2,891 | 6 | — | 26,523 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | 864 | 12,131 | 5,850 | — | 18,845 | ||||||||||||||||||||||||||||||||||||||||||
Total trading instruments | 52,405 | 838,688 | 6,438 | (93,259 | ) | 804,272 | |||||||||||||||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | — | 352,303 | — | — | 352,303 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency CMOs | — | 147,558 | 249 | — | 147,807 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | 12 | — | — | — | 12 | ||||||||||||||||||||||||||||||||||||||||||
ARS: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipals | — | — | 123,559 | (3) | — | 123,559 | |||||||||||||||||||||||||||||||||||||||||
Preferred securities | — | — | 110,193 | — | 110,193 | ||||||||||||||||||||||||||||||||||||||||||
Total available for sale securities | 12 | 499,861 | 234,001 | — | 733,874 | ||||||||||||||||||||||||||||||||||||||||||
Private equity investments | — | — | 336,927 | (4) | — | 336,927 | |||||||||||||||||||||||||||||||||||||||||
Other investments (5) | 303,817 | 2,897 | 4,092 | — | 310,806 | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments associated with offsetting matched book positions | — | 458,265 | — | — | 458,265 | ||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 356,234 | $ | 1,799,711 | $ | 581,458 | $ | (93,259 | ) | $ | 2,644,144 | ||||||||||||||||||||||||||||||||||||
Assets at fair value on a nonrecurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net | |||||||||||||||||||||||||||||||||||||||||||||||
Impaired loans (6) | $ | — | $ | 47,409 | $ | 46,383 | $ | — | $ | 93,792 | |||||||||||||||||||||||||||||||||||||
Loans held for sale (7) | — | 81,093 | — | — | 81,093 | ||||||||||||||||||||||||||||||||||||||||||
Total bank loans, net | — | 128,502 | 46,383 | — | 174,885 | ||||||||||||||||||||||||||||||||||||||||||
OREO (8) | — | 6,216 | — | — | 6,216 | ||||||||||||||||||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 134,718 | $ | 46,383 | $ | — | $ | 181,101 | |||||||||||||||||||||||||||||||||||||
(continued on next page) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2012 | Quoted prices | Significant | Significant | Netting | Balance as of | ||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | adjustments (2) | September 30, | |||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | 2012 | ||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) (1) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) (1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
(continued from previous page) | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments sold but not yet purchased: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | — | $ | 212 | $ | — | $ | — | $ | 212 | |||||||||||||||||||||||||||||||||||||
Corporate obligations | 33 | 12,355 | — | — | 12,388 | ||||||||||||||||||||||||||||||||||||||||||
Government obligations | 199,501 | 587 | — | — | 200,088 | ||||||||||||||||||||||||||||||||||||||||||
Agency MBS and CMOs | 556 | — | — | — | 556 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency MBS and CMOs | — | 121 | — | — | 121 | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities | 200,090 | 13,275 | — | — | 213,365 | ||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 128,081 | — | (124,979 | ) | 3,102 | |||||||||||||||||||||||||||||||||||||||||
Equity securities | 9,636 | 64 | — | — | 9,700 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | — | 6,269 | — | — | 6,269 | ||||||||||||||||||||||||||||||||||||||||||
Total trading instruments sold but not yet purchased | 209,726 | 147,689 | — | (124,979 | ) | 232,436 | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments associated with offsetting matched book positions | — | 458,265 | — | — | 458,265 | ||||||||||||||||||||||||||||||||||||||||||
Trade and other payables: | |||||||||||||||||||||||||||||||||||||||||||||||
Derivative contracts | — | 1,370 | — | — | 1,370 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | — | — | 98 | — | 98 | ||||||||||||||||||||||||||||||||||||||||||
Total trade and other payables | — | 1,370 | 98 | — | 1,468 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $ | 209,726 | $ | 607,324 | $ | 98 | $ | (124,979 | ) | $ | 692,169 | ||||||||||||||||||||||||||||||||||||
-1 | We had no transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2012. We had $541 thousand in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2012. These transfers were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | Where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. | ||||||||||||||||||||||||||||||||||||||||||||||
-3 | Includes $48 million of Jefferson County, Alabama Limited Obligation School Warrants ARS and $22 million of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS. | ||||||||||||||||||||||||||||||||||||||||||||||
-4 | Includes $224 million in private equity investments of which the weighted-average portion we own is approximately 28%. Effectively, the economics associated with the portions of these investments we do not own become a component of noncontrolling interests on our Consolidated Statements of Financial Condition, and amounted to approximately $161 million of that total as of September 30, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||
-5 | Other investments include $185 million of financial instruments that are related to obligations to perform under certain of MK & Co.’s historic deferred compensation plans (see Note 2 and Note 23 for further information regarding these plans). | ||||||||||||||||||||||||||||||||||||||||||||||
-6 | During the year ended September 30, 2012, we initially transferred $55 million of impaired loans from Level 3 to Level 2. The transfer was a result of the increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our analysis indicates that comparative sales data is a reasonable estimate of fair value, therefore, more consideration was given to this observable input. | ||||||||||||||||||||||||||||||||||||||||||||||
-7 | Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost. | ||||||||||||||||||||||||||||||||||||||||||||||
-8 | Represents the fair value of foreclosed properties which were measured at a fair value subsequent to their initial classification as OREO. The recorded value in the Consolidated Statements of Financial Condition is net of the estimated selling costs. | ||||||||||||||||||||||||||||||||||||||||||||||
Level 3 Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis, Roll Forward Table of Change in Balances | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Additional information about Level 3 assets and liabilities measured at fair value on a recurring basis is presented below: | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | Financial | ||||||||||||||||||||||||||||||||||||||||||||||
liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments | Available for sale securities | Private equity, other investments, other receivables and other assets | Payables- | ||||||||||||||||||||||||||||||||||||||||||||
trade and | |||||||||||||||||||||||||||||||||||||||||||||||
other | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal & | Non- | Equity | Other | Non- | ARS – | ARS - | Private | Other | Other receivables | Other Assets | Other | ||||||||||||||||||||||||||||||||||||
provincial | agency | securities | securities | agency | municipals | preferred | equity | investments | liabilities | ||||||||||||||||||||||||||||||||||||||
obligations | CMOs & | CMOs | securities | investments | |||||||||||||||||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 553 | $ | 29 | $ | 6 | $ | 5,850 | $ | 249 | $ | 123,559 | $ | 110,193 | $ | 336,927 | $ | 4,092 | $ | — | $ | — | $ | (98 | ) | ||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) for the year: | |||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | — | (4 | ) | 1 | (140 | ) | (396 | ) | 439 | 1,164 | 70,688 | (1) | 1,390 | 2,778 | — | 38 | |||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | — | — | 281 | 13,212 | 7,504 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Purchases and contributions | — | — | 63 | 9,885 | — | — | 25 | 20,416 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Sales | (553 | ) | — | (37 | ) | (9,234 | ) | — | (4,971 | ) | (90 | ) | (165,878 | ) | (2) | (691 | ) | — | — | — | |||||||||||||||||||||||||||
Redemptions by issuer | — | — | — | — | — | (1,305 | ) | (8,012 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Distributions | — | (11 | ) | — | (2,390 | ) | (56 | ) | — | — | (45,762 | ) | (315 | ) | — | — | — | ||||||||||||||||||||||||||||||
Transfers: (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Into Level 3 | — | — | 2 | — | — | — | — | — | 131 | — | 15 | — | |||||||||||||||||||||||||||||||||||
Out of Level 3 | — | — | — | (15 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fair value | $ | — | $ | 14 | $ | 35 | $ | 3,956 | $ | 78 | $ | 130,934 | $ | 110,784 | $ | 216,391 | $ | 4,607 | $ | 2,778 | $ | 15 | $ | (60 | ) | ||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | $ | — | $ | 38 | $ | (1 | ) | $ | (140 | ) | $ | (396 | ) | $ | 13,212 | $ | 7,504 | $ | 5,354 | $ | 1,511 | $ | 2,778 | $ | — | $ | — | ||||||||||||||||||||
-1 | Results from valuation adjustments of certain private equity investments and the April 29, 2013 sale of our indirect investment in Albion Medical Holdings, Inc. (“Albion”). Since we only own a portion of these investments, our share of the net valuation adjustments and Albion sale resulted in a gain of $28.4 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net gain is approximately $42.3 million. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | Results primarily from the April 29, 2013 sale of our indirect investment in Albion. The amount is presented gross, and therefore includes amounts pertaining to interests held by others. | ||||||||||||||||||||||||||||||||||||||||||||||
-3 | Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | Financial | ||||||||||||||||||||||||||||||||||||||||||||||
liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments | Available for sale securities | Private equity and other investments | Payables-trade | ||||||||||||||||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal & | Non- | Equity | Other securities | Non- | ARS – | ARS - | Private | Other | Other | ||||||||||||||||||||||||||||||||||||||
provincial | agency | securities | agency | municipals | preferred | equity | investments | liabilities | |||||||||||||||||||||||||||||||||||||||
obligations | CMOs & | CMOs | securities | investments | |||||||||||||||||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 375 | $ | 50 | $ | 15 | $ | — | $ | 851 | $ | 79,524 | $ | 116,524 | $ | 168,785 | $ | 2,087 | $ | (40 | ) | ||||||||||||||||||||||||||
September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) for the year: | |||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | 89 | (3 | ) | 11 | (1,034 | ) | (691 | ) | (1,487 | ) | (75 | ) | 36,098 | (1) | 296 | (58 | ) | ||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | — | — | 130 | (7,651 | ) | (1,528 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
Purchases and contributions | 553 | — | 18 | 16,268 | — | 56,344 | 66,915 | 162,795 | (4) | 2,276 | — | ||||||||||||||||||||||||||||||||||||
Sales | (320 | ) | — | (16 | ) | (14,251 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Redemptions by issuer | — | — | — | — | — | (3,214 | ) | (71,600 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
Distributions | — | (18 | ) | — | (1,710 | ) | (41 | ) | — | — | (30,751 | ) | (567 | ) | — | ||||||||||||||||||||||||||||||||
Transfers: | |||||||||||||||||||||||||||||||||||||||||||||||
Into Level 3 | — | — | 156 | 6,577 | (2) | — | 43 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Out of Level 3 (3) | (144 | ) | — | (178 | ) | — | — | — | (43 | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Fair value | $ | 553 | $ | 29 | $ | 6 | $ | 5,850 | $ | 249 | $ | 123,559 | $ | 110,193 | $ | 336,927 | $ | 4,092 | $ | (98 | ) | ||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | $ | — | $ | 9 | $ | (5 | ) | $ | (1,034 | ) | $ | (691 | ) | $ | (9,060 | ) | $ | (1,528 | ) | $ | 36,098 | (1) | $ | 172 | $ | — | |||||||||||||||||||||
-1 | Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of $15.2 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $20.9 million. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | During the year ended September 30, 2012, we transferred certain non-agency CMOs and ABS securities which were previously included in Level 2, into Level 3, due to a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. | ||||||||||||||||||||||||||||||||||||||||||||||
-3 | The transfers out of Level 3 were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
-4 | Includes private equity investments of approximately $46 million arising from the Morgan Keegan acquisition and $97 million of other investments arising from the consolidation of certain of Morgan Keegan’s private equity funds (see Note 3 for further information regarding the Morgan Keegan acquisition and the consolidation of some of the private equity funds they sponsor). | ||||||||||||||||||||||||||||||||||||||||||||||
Year ended September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Level 3 assets at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | Financial | ||||||||||||||||||||||||||||||||||||||||||||||
liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Trading instruments | Available for sale securities | Private equity and other investments | Payables-trade | ||||||||||||||||||||||||||||||||||||||||||||
and other | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal & | Non- | Equity | Non- | ARS – | ARS - | Private | Other | Other | |||||||||||||||||||||||||||||||||||||||
provincial | agency | securities | agency | municipals | preferred | equity | investments | liabilities | |||||||||||||||||||||||||||||||||||||||
obligations | CMOs & | CMOs | securities | investments | |||||||||||||||||||||||||||||||||||||||||||
ABS | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value | $ | 6,275 | $ | 3,930 | $ | 3,025 | $ | 1,011 | $ | — | $ | — | $ | 161,230 | $ | 45 | $ | (46 | ) | ||||||||||||||||||||||||||||
September 30, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||
Total gains (losses) for the year: | |||||||||||||||||||||||||||||||||||||||||||||||
Included in earnings | (397 | ) | 1,318 | (176 | ) | 121 | — | — | 10,683 | (1) | (160 | ) | 6 | ||||||||||||||||||||||||||||||||||
Included in other comprehensive income | — | — | — | 155 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Purchases and contributions | 1,050 | 12 | 688 | — | 73,213 | 131,255 | 14,027 | 1,932 | — | ||||||||||||||||||||||||||||||||||||||
Sales | (305 | ) | (5,210 | ) | (1,225 | ) | (436 | ) | — | — | — | (191 | ) | — | |||||||||||||||||||||||||||||||||
Redemptions by issuer | — | — | (1,125 | ) | — | — | (15,925 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | (16,694 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Transfers: | |||||||||||||||||||||||||||||||||||||||||||||||
Into Level 3 (2) | — | — | — | — | 6,311 | 1,194 | — | 461 | — | ||||||||||||||||||||||||||||||||||||||
Out of Level 3 (2) | (6,248 | ) | — | (1,172 | ) | — | — | — | (461 | ) | — | — | |||||||||||||||||||||||||||||||||||
Fair value | $ | 375 | $ | 50 | $ | 15 | $ | 851 | $ | 79,524 | $ | 116,524 | $ | 168,785 | $ | 2,087 | $ | (40 | ) | ||||||||||||||||||||||||||||
September 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | $ | 203 | $ | (99 | ) | $ | (23 | ) | $ | (81 | ) | $ | — | $ | — | $ | (8 | ) | $ | (143 | ) | $ | — | ||||||||||||||||||||||||
-1 | Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of $6 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $4.7 million. | ||||||||||||||||||||||||||||||||||||||||||||||
-2 | During the fiscal year 2011, ARS positions we held in trading instruments which were repurchased from clients in individual settlements prior to the June, 2011 ARS settlement were transferred into available for sale securities. In addition, certain investments held by our Canadian subsidiary were reclassified from private equity investments to other investments. In all periods presented, these positions were considered Level 3 assets in the fair value hierarchy. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||||||||||||||||||||||||||||||||||||||||||||
Gains and Losses (Realized and Unrealized) Included in Revenues | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Gains and losses included in earnings are presented in net trading profits and other revenues in our Consolidated Statements of Income and Comprehensive Income as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
For the year ended September 30, 2013 | Net trading | Other | |||||||||||||||||||||||||||||||||||||||||||||
profits | revenues | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Total (losses) gains included in revenues | $ | (143 | ) | $ | 76,101 | ||||||||||||||||||||||||||||||||||||||||||
Change in unrealized (losses) gains for assets held at the end of the reporting period | $ | (103 | ) | $ | 29,963 | ||||||||||||||||||||||||||||||||||||||||||
For the year ended September 30, 2012 | Net trading | Other | |||||||||||||||||||||||||||||||||||||||||||||
profits | revenues | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Total (losses) gains included in revenues | $ | (937 | ) | $ | 34,083 | ||||||||||||||||||||||||||||||||||||||||||
Change in unrealized (losses) gains for assets held at the end of the reporting period | $ | (1,030 | ) | $ | 24,991 | ||||||||||||||||||||||||||||||||||||||||||
For the year ended September 30, 2011 | Net trading | Other | |||||||||||||||||||||||||||||||||||||||||||||
profits | revenues | ||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Total gains included in revenues | $ | 745 | $ | 10,650 | |||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains (losses) for assets held at the end of the reporting period | $ | 81 | $ | (232 | ) | ||||||||||||||||||||||||||||||||||||||||||
Significant Assumptions Used in Valuation of Level 3 Financial Instruments | ' | ||||||||||||||||||||||||||||||||||||||||||||||
The significant assumptions used in the valuation of level 3 financial instruments are presented in the table on the following page (such table includes the significant majority of the financial instruments we hold that are classified as level 3 measures). | |||||||||||||||||||||||||||||||||||||||||||||||
Level 3 financial instrument | Fair value at | Valuation technique(s) | Unobservable input | Range (weighted-average) | |||||||||||||||||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Recurring measurements: | |||||||||||||||||||||||||||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||
ARS: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipals | $ | 54,365 | Probability weighted | ||||||||||||||||||||||||||||||||||||||||||||
internal scenario model: | |||||||||||||||||||||||||||||||||||||||||||||||
Scenario 1 - recent trades | Observed trades (in inactive markets) of in-portfolio securities as well as observed trades (in active markets) of other comparable securities | 81.9% of par - 84.0% of par (82.75% of par) | |||||||||||||||||||||||||||||||||||||||||||||
Scenario 2 - discounted cash flow | Average discount rate(a) | 8.02% - 9.14% (8.58%) | |||||||||||||||||||||||||||||||||||||||||||||
Average interest rates applicable to future interest income on the securities(b) | 1.88% - 7.64% (4.76%) | ||||||||||||||||||||||||||||||||||||||||||||||
Prepayment year(c) | 2016 - 2023 (2020) | ||||||||||||||||||||||||||||||||||||||||||||||
Weighting assigned to outcome of scenario 1/scenario 2 | 90%/10% | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 24,716 | Recent trades | Observed trades (in inactive markets) of in-portfolio securities as well as | 63.8% of par - 74% of par (73.78% of par) | |||||||||||||||||||||||||||||||||||||||||||
observed trades of | |||||||||||||||||||||||||||||||||||||||||||||||
other comparable securities | |||||||||||||||||||||||||||||||||||||||||||||||
(in inactive markets) | |||||||||||||||||||||||||||||||||||||||||||||||
Comparability adjustments(d) | +/- 5% of par (+/- 5% of par) | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 51,853 | Discounted cash flow | Average discount rate(a) | 3.34% - 6.33% (4.75%) | |||||||||||||||||||||||||||||||||||||||||||
Average interest rates applicable to future interest income on the securities(b) | 0.88% - 7.62% (3.32%) | ||||||||||||||||||||||||||||||||||||||||||||||
Prepayment year(c) | 2016 - 2023 (2019) | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred securities | $ | 110,784 | Discounted cash flow | Average discount rate(a) | 3.35% - 5.23% (4.42%) | ||||||||||||||||||||||||||||||||||||||||||
Average interest rates applicable to future interest income on the securities(b) | 1.43% - 2.73% (1.98%) | ||||||||||||||||||||||||||||||||||||||||||||||
Prepayment year(c) | 2013 - 2018 (2017) | ||||||||||||||||||||||||||||||||||||||||||||||
Private equity investments: | $ | 37,849 | Income or market approach: | ||||||||||||||||||||||||||||||||||||||||||||
Scenario 1 - income approach - discounted cash flow | Discount rate(a) | 14% - 15% (14%) | |||||||||||||||||||||||||||||||||||||||||||||
Terminal growth rate of cash flows | 3% - 3% (3%) | ||||||||||||||||||||||||||||||||||||||||||||||
Terminal year | 2014 - 2015 (2014) | ||||||||||||||||||||||||||||||||||||||||||||||
Scenario 2 - market approach - market multiple method | EBITDA Multiple(e) | 4.75 - 7.00 (5.39) | |||||||||||||||||||||||||||||||||||||||||||||
Projected EBITDA growth(f) | 16.3% - 16.3% (16.3%) | ||||||||||||||||||||||||||||||||||||||||||||||
Weighting assigned to outcome of scenario 1/scenario 2 | 86%/14% | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 178,542 | Transaction price, other investment-specific events, or our proportionate share of the net assets of the partnership provided by the fund manager(g) | Not meaningful(g) | Not meaningful(g) | |||||||||||||||||||||||||||||||||||||||||||
Nonrecurring measurements: | |||||||||||||||||||||||||||||||||||||||||||||||
Impaired loans: residential | $ | 34,268 | Discounted cash flow | Prepayment rate | 0 yrs. - 12 yrs. (7.8 yrs.) | ||||||||||||||||||||||||||||||||||||||||||
Impaired loans: corporate | $ | 25,600 | Appraisal, discounted cash flow, or distressed enterprise value(h) | Not meaningful(h) | Not meaningful(h) | ||||||||||||||||||||||||||||||||||||||||||
The explanations to the footnotes in the above table are on the following page. | |||||||||||||||||||||||||||||||||||||||||||||||
Footnote explanations pertaining to the table on the previous page: | |||||||||||||||||||||||||||||||||||||||||||||||
(a) | Represents discount rates used when we have determined that market participants would take these discounts into account when pricing the investments. | ||||||||||||||||||||||||||||||||||||||||||||||
(b) | Future interest rates are projected based upon a forward interest rate curve, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. | ||||||||||||||||||||||||||||||||||||||||||||||
(c) | Assumed year of at least a partial redemption of the outstanding security by the issuer. | ||||||||||||||||||||||||||||||||||||||||||||||
(d) | Management estimates that market participants apply this range of either discount or premium, as applicable, to the limited observable trade data in order to assess the value of the securities within this portfolio segment. | ||||||||||||||||||||||||||||||||||||||||||||||
(e) | Represents amounts used when we have determined that market participants would use such multiples when pricing the investments. | ||||||||||||||||||||||||||||||||||||||||||||||
(f) | Represents the projected growth in earnings before interest, taxes, depreciation and amortization (“EBITDA”) utilized in the valuation as compared to the prior periods reported EBITDA. | ||||||||||||||||||||||||||||||||||||||||||||||
(g) | Certain direct private equity investments are valued initially at the transaction price until either our annual review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, where any of which indicate that a change in the carrying values of these investments is appropriate. | ||||||||||||||||||||||||||||||||||||||||||||||
(h) | The valuation techniques used for the impaired corporate loan portfolio as of September 30, 2013 were appraisals less selling costs for the collateral dependent loans, and either discounted cash flows or distressed enterprise value for the remaining impaired loans that are not collateral dependent. | ||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | ' | ||||||||||||||||||||||||||||||||||||||||||||||
The estimated fair values by level within the fair value hierarchy and the carrying amounts of our financial instruments that are not carried at fair value are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||
Quoted prices | Significant | Significant | Total estimated fair value | Carrying amount | |||||||||||||||||||||||||||||||||||||||||||
in active | other | unobservable | |||||||||||||||||||||||||||||||||||||||||||||
markets for | observable | inputs | |||||||||||||||||||||||||||||||||||||||||||||
identical | inputs | (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
assets | (Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net(1) | $ | — | $ | 83,012 | $ | 8,614,755 | $ | 8,697,767 | $ | 8,700,027 | |||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | $ | — | $ | 8,981,996 | $ | 320,196 | $ | 9,302,192 | $ | 9,295,371 | |||||||||||||||||||||||||||||||||||||
Other borrowings | $ | — | $ | 84,076 | $ | — | $ | 84,076 | $ | 84,076 | |||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 352,520 | $ | 951,628 | $ | — | $ | 1,304,148 | $ | 1,194,508 | |||||||||||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank loans, net(1) | $ | — | $ | 80,227 | $ | 7,803,328 | $ | 7,883,555 | $ | 7,816,627 | |||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | $ | — | $ | 8,280,834 | $ | 329,966 | $ | 8,610,800 | $ | 8,599,713 | |||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 384,440 | $ | 962,610 | $ | — | $ | 1,347,050 | $ | 1,329,093 | |||||||||||||||||||||||||||||||||||||
-1 | Excludes all impaired loans and loans held for sale which have been recorded at fair value in the Consolidated Statement of Financial Condition at September 30, 2013 and 2012, respectively. |
TRADING_INSTRUMENTS_AND_TRADIN1
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED [Abstract] | ' | |||||||||||||||
Trading Instruments and Trading Instruments Sold but Not Yet Purchased | ' | |||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Trading | Instruments | Trading | Instruments | |||||||||||||
instruments | sold but not | instruments | sold but not | |||||||||||||
yet purchased | yet purchased | |||||||||||||||
(in thousands) | ||||||||||||||||
Municipal and provincial obligations | $ | 202,826 | $ | 1,777 | $ | 346,590 | $ | 212 | ||||||||
Corporate obligations | 60,406 | 9,111 | 86,731 | 12,388 | ||||||||||||
Government and agency obligations | 113,396 | 169,816 | 167,399 | 200,088 | ||||||||||||
Agency MBS and CMOs | 93,149 | 3,068 | 105,169 | 556 | ||||||||||||
Non-agency CMOs and ABS | 16,971 | — | 2,015 | 121 | ||||||||||||
Total debt securities | 486,748 | 183,772 | 707,904 | 213,365 | ||||||||||||
Derivative contracts (1) | 28,109 | 5,641 | 51,000 | 3,102 | ||||||||||||
Equity securities | 53,015 | 31,243 | 26,523 | 9,700 | ||||||||||||
Other securities | 11,833 | — | 18,845 | 6,269 | ||||||||||||
Total | $ | 579,705 | $ | 220,656 | $ | 804,272 | $ | 232,436 | ||||||||
-1 | Represents the derivative contracts held for trading purposes. These balances do not include all derivative instruments since the derivative instruments associated with offsetting matched book positions are included on their own line item on our Consolidated Statements of Financial Condition. See Note 18 for further information regarding all of our derivative transactions. |
AVAILABLE_FOR_SALE_SECURITIES_
AVAILABLE FOR SALE SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||||||||||
Amortized Cost and Estimated Fair Values of Available For Sale Securities | ' | |||||||||||||||||||||||
The amortized cost and fair values of available for sale securities are as follows: | ||||||||||||||||||||||||
Cost basis | Gross | Gross | Fair value | |||||||||||||||||||||
unrealized gains | unrealized losses | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 326,858 | $ | 707 | $ | (1,536 | ) | $ | 326,029 | |||||||||||||||
Non-agency CMOs (1) | 142,169 | 4 | (13,152 | ) | 129,021 | |||||||||||||||||||
Other securities | 1,575 | 501 | — | 2,076 | ||||||||||||||||||||
Total RJ Bank available for sale securities | 470,602 | 1,212 | (14,688 | ) | 457,126 | |||||||||||||||||||
Auction rate securities: | ||||||||||||||||||||||||
Municipal obligations | 125,371 | 6,831 | (1,268 | ) | 130,934 | |||||||||||||||||||
Preferred securities | 104,808 | 5,976 | — | 110,784 | ||||||||||||||||||||
Total auction rate securities | 230,179 | 12,807 | (1,268 | ) | 241,718 | |||||||||||||||||||
Total available for sale securities | $ | 700,781 | $ | 14,019 | $ | (15,956 | ) | $ | 698,844 | |||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 350,568 | $ | 1,938 | $ | (203 | ) | $ | 352,303 | |||||||||||||||
Non-agency CMOs (2) | 166,339 | 23 | (18,555 | ) | 147,807 | |||||||||||||||||||
Total RJ Bank available for sale securities | 516,907 | 1,961 | (18,758 | ) | 500,110 | |||||||||||||||||||
Auction rate securities: | ||||||||||||||||||||||||
Municipal obligations (3) | 131,208 | 870 | (8,519 | ) | 123,559 | |||||||||||||||||||
Preferred securities (4) | 111,721 | 232 | (1,760 | ) | 110,193 | |||||||||||||||||||
Total auction rate securities | 242,929 | 1,102 | (10,279 | ) | 233,752 | |||||||||||||||||||
Other securities | 3 | 9 | — | 12 | ||||||||||||||||||||
Total available for sale securities | $ | 759,839 | $ | 3,072 | $ | (29,037 | ) | $ | 733,874 | |||||||||||||||
September 30, 2011 | ||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 178,120 | $ | 639 | $ | (27 | ) | $ | 178,732 | |||||||||||||||
Non-agency CMOs (5) | 192,956 | — | (47,081 | ) | 145,875 | |||||||||||||||||||
Total RJ Bank available for sale securities | 371,076 | 639 | (47,108 | ) | 324,607 | |||||||||||||||||||
Auction rate securities: | ||||||||||||||||||||||||
Municipal obligations | 79,524 | — | — | 79,524 | ||||||||||||||||||||
Preferred securities | 116,524 | — | — | 116,524 | ||||||||||||||||||||
Total auction rate securities | 196,048 | — | — | 196,048 | ||||||||||||||||||||
Other securities | 3 | 7 | — | 10 | ||||||||||||||||||||
Total available for sale securities | $ | 567,127 | $ | 646 | $ | (47,108 | ) | $ | 520,665 | |||||||||||||||
-1 | As of September 30, 2013, the non-credit portion of OTTI recorded in AOCI was $11.1 million (before taxes). | |||||||||||||||||||||||
-2 | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $15.5 million (before taxes). | |||||||||||||||||||||||
-3 | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $7.6 million (before taxes). | |||||||||||||||||||||||
-4 | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $1.5 million (before taxes). | |||||||||||||||||||||||
-5 | As of September 30, 2011, the non-credit portion of OTTI recorded in AOCI was $37.9 million (before taxes). | |||||||||||||||||||||||
Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available For Sales Securities | ' | |||||||||||||||||||||||
The contractual maturities, amortized cost, carrying values and current yields for our available for sale securities are as presented below. Since the majority of RJ Bank’s available for sale securities are backed by mortgages, actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. Expected maturities of ARS and other securities may differ significantly from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Within one year | After one but | After five but | After ten years | Total | ||||||||||||||||||||
within five | within ten | |||||||||||||||||||||||
years | years | |||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Agency MBS & CMOs: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 12,947 | $ | 55,761 | $ | 258,150 | $ | 326,858 | ||||||||||||||
Carrying value | — | 12,976 | 55,872 | 257,181 | 326,029 | |||||||||||||||||||
Weighted-average yield | — | 0.29 | % | 0.39 | % | 1.11 | % | 0.95 | % | |||||||||||||||
Non-agency CMOs: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | — | $ | 142,169 | $ | 142,169 | ||||||||||||||
Carrying value | — | — | — | 129,021 | 129,021 | |||||||||||||||||||
Weighted-average yield | — | — | — | 2.68 | % | 2.68 | % | |||||||||||||||||
Other securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | — | $ | 1,575 | $ | 1,575 | ||||||||||||||
Carrying value | — | — | — | 2,076 | 2,076 | |||||||||||||||||||
Weighted-average yield | — | — | — | — | — | |||||||||||||||||||
Sub-total agency MBS & CMOs, non-agency CMOs and other securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 12,947 | $ | 55,761 | $ | 401,894 | $ | 470,602 | ||||||||||||||
Carrying value | — | 12,976 | 55,872 | 388,278 | 457,126 | |||||||||||||||||||
Weighted-average yield | — | 0.29 | % | 0.39 | % | 1.63 | % | 1.44 | % | |||||||||||||||
Auction rate securities | ||||||||||||||||||||||||
Municipal obligations: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 2,010 | $ | 1,853 | $ | 121,508 | $ | 125,371 | ||||||||||||||
Carrying value | — | 2,014 | 1,877 | 127,043 | 130,934 | |||||||||||||||||||
Weighted-average yield | — | 0.22 | % | 0.31 | % | 0.51 | % | 0.5 | % | |||||||||||||||
Preferred securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | — | $ | 104,808 | $ | 104,808 | ||||||||||||||
Carrying value | — | — | — | 110,784 | 110,784 | |||||||||||||||||||
Weighted-average yield | — | — | — | 0.23 | % | 0.23 | % | |||||||||||||||||
Sub-total auction rate securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 2,010 | $ | 1,853 | $ | 226,316 | $ | 230,179 | ||||||||||||||
Carrying value | — | 2,014 | 1,877 | 237,827 | 241,718 | |||||||||||||||||||
Weighted-average yield | — | 0.22 | % | 0.31 | % | 0.38 | % | 0.38 | % | |||||||||||||||
Total available for sale securities: | ||||||||||||||||||||||||
Amortized cost | $ | — | $ | 14,957 | $ | 57,614 | $ | 628,210 | $ | 700,781 | ||||||||||||||
Carrying value | — | 14,990 | 57,749 | 626,105 | 698,844 | |||||||||||||||||||
Weighted-average yield | — | 0.28 | % | 0.39 | % | 1.16 | % | 1.07 | % | |||||||||||||||
Available For Sale Securities in a Continuous Unrealized Loss Position | ' | |||||||||||||||||||||||
The gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, are as follows: | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
fair value | losses | fair value | losses | fair value | losses | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 157,580 | $ | (1,150 | ) | $ | 22,940 | $ | (386 | ) | $ | 180,520 | $ | (1,536 | ) | |||||||||
Non-agency CMOs | 4,906 | (556 | ) | 123,139 | (12,596 | ) | 128,045 | (13,152 | ) | |||||||||||||||
ARS municipal obligations | 771 | (100 | ) | 19,747 | (1,168 | ) | 20,518 | (1,268 | ) | |||||||||||||||
Total | $ | 163,257 | $ | (1,806 | ) | $ | 165,826 | $ | (14,150 | ) | $ | 329,083 | $ | (15,956 | ) | |||||||||
September 30, 2012 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
fair value | losses | fair value | losses | fair value | losses | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Agency MBS and CMOs | $ | 43,792 | $ | (193 | ) | $ | 4,362 | $ | (10 | ) | $ | 48,154 | $ | (203 | ) | |||||||||
Non-agency CMOs | — | — | 146,591 | (18,555 | ) | 146,591 | (18,555 | ) | ||||||||||||||||
ARS municipal obligations | 98,497 | (8,519 | ) | — | — | 98,497 | (8,519 | ) | ||||||||||||||||
ARS preferred securities | 80,244 | (1,760 | ) | — | — | 80,244 | (1,760 | ) | ||||||||||||||||
Total | $ | 222,533 | $ | (10,472 | ) | $ | 150,953 | $ | (18,565 | ) | $ | 373,486 | $ | (29,037 | ) | |||||||||
Non-Agency CMOs Cash Flow Analysis Assumptions | ' | |||||||||||||||||||||||
The significant assumptions used in the cash flow analysis of non-agency CMOs are as follows: | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Range | Weighted- | |||||||||||||||||||||||
average (1) | ||||||||||||||||||||||||
Default rate | 0% - 28.6% | 9.42% | ||||||||||||||||||||||
Loss severity | 0% - 76.6% | 43.14% | ||||||||||||||||||||||
Prepayment rate | 1.7% - 47.0% | 10.67% | ||||||||||||||||||||||
-1 | Represents the expected activity for the next twelve months. | |||||||||||||||||||||||
Credit Losses Recognized in Earnings on Available For Sale Securities | ' | |||||||||||||||||||||||
Changes in the amount of OTTI related to credit losses recognized in other revenues on available for sale securities are as follows: | ||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amount related to credit losses on securities we held at the beginning of the year | $ | 27,581 | $ | 22,306 | $ | 18,816 | ||||||||||||||||||
Additions to the amount related to credit loss for which an OTTI was not previously recognized | — | 1,409 | 240 | |||||||||||||||||||||
Decreases to the amount related to credit loss for securities sold during the year | — | — | (6,744 | ) | ||||||||||||||||||||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | 636 | 3,866 | 9,994 | |||||||||||||||||||||
Amount related to credit losses on securities we held at the end of the year | $ | 28,217 | $ | 27,581 | $ | 22,306 | ||||||||||||||||||
RECEIVABLES_FROM_AND_PAYABLES_1
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS [Abstract] | ' | |||||||
Amount Receivable to Brokerage Clients | ' | |||||||
The amount receivable from clients is as follows: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Brokerage client receivables | $ | 1,983,402 | $ | 2,067,207 | ||||
Allowance for doubtful accounts | (62 | ) | (90 | ) | ||||
Brokerage client receivables, net | $ | 1,983,340 | $ | 2,067,117 | ||||
Amounts Payable to Brokerage Clients | ' | |||||||
The following table presents a summary of such payables: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Brokerage client payables: | (in thousands) | |||||||
Interest bearing | $ | 5,457,107 | $ | 4,299,640 | ||||
Non-interest bearing | 485,736 | 285,016 | ||||||
Total brokerage client payables | $ | 5,942,843 | $ | 4,584,656 | ||||
BANK_LOANS_NET_Tables
BANK LOANS, NET (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Held for Sale and Held for Investment Loan Portfolios | ' | |||||||||||||||||||||||||||
The following table presents the balances for both the held for sale and held for investment loan portfolios as well as the associated percentage of each portfolio segment in RJ Bank’s total loan portfolio: | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2011 | ||||||||||||||||||||||||||
Balance | % | Balance | % | Balance | % | |||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Loans held for sale, net(1) | $ | 110,292 | 1 | % | $ | 160,515 | 2 | % | $ | 102,236 | 2 | % | ||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||
C&I loans | 4,439,668 | 50 | % | 4,553,061 | 55 | % | 3,987,122 | 59 | % | |||||||||||||||||||
CRE construction loans | 38,964 | — | 26,360 | 1 | % | 29,087 | — | |||||||||||||||||||||
CRE loans | 1,075,986 | 12 | % | 828,414 | 10 | % | 742,889 | 11 | % | |||||||||||||||||||
Residential mortgage loans | 1,743,787 | 20 | % | 1,690,465 | 21 | % | 1,754,925 | 26 | % | |||||||||||||||||||
Consumer loans | 554,210 | 6 | % | 350,770 | 4 | % | 7,438 | — | ||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||||||
C&I loans | 806,337 | 9 | % | 465,770 | 6 | % | 113,817 | 2 | % | |||||||||||||||||||
CRE construction loans | 21,876 | — | 23,114 | — | — | — | ||||||||||||||||||||||
CRE loans | 207,060 | 2 | % | 108,036 | 1 | % | — | — | ||||||||||||||||||||
Residential mortgage loans | 1,863 | — | 1,521 | — | 1,561 | — | ||||||||||||||||||||||
Consumer loans | 1,595 | — | 1,725 | — | — | — | ||||||||||||||||||||||
Total loans held for investment | 8,891,346 | 8,049,236 | 6,636,839 | |||||||||||||||||||||||||
Net unearned income and deferred expenses | (43,936 | ) | (70,698 | ) | (45,417 | ) | ||||||||||||||||||||||
Total loans held for investment, net(1) | 8,847,410 | 7,978,538 | 6,591,422 | |||||||||||||||||||||||||
Total loans held for sale and investment | 8,957,702 | 100 | % | 8,139,053 | 100 | % | 6,693,658 | 100 | % | |||||||||||||||||||
Allowance for loan losses | (136,501 | ) | (147,541 | ) | (145,744 | ) | ||||||||||||||||||||||
Bank loans, net | $ | 8,821,201 | $ | 7,991,512 | $ | 6,547,914 | ||||||||||||||||||||||
September 30, 2010 | September 30, 2009 | |||||||||||||||||||||||||||
Balance | % | Balance | % | |||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Loans held for sale, net(1) | 6,114 | — | $ | 40,484 | 1 | % | ||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||
C&I loans | 3,173,093 | 51 | % | 3,030,575 | 45 | % | ||||||||||||||||||||||
CRE construction loans | 65,512 | 1 | % | 163,951 | 2 | % | ||||||||||||||||||||||
CRE loans | 937,669 | 15 | % | 1,080,160 | 16 | % | ||||||||||||||||||||||
Residential mortgage loans | 2,013,681 | 32 | % | 2,395,080 | 35 | % | ||||||||||||||||||||||
Consumer loans | 23,940 | — | 22,816 | — | ||||||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||||||
C&I loans | 59,630 | 1 | % | 49,341 | 1 | % | ||||||||||||||||||||||
Residential mortgage loans | 1,650 | — | 1,915 | — | ||||||||||||||||||||||||
Total loans held for investment | 6,275,175 | 6,743,838 | ||||||||||||||||||||||||||
Net unearned income and deferred expenses | (39,276 | ) | (40,077 | ) | ||||||||||||||||||||||||
Total loans held for investment, net(1) | 6,235,899 | 6,703,761 | ||||||||||||||||||||||||||
Total loans held for sale and investment | 6,242,013 | 100 | % | 6,744,245 | 100 | % | ||||||||||||||||||||||
Allowance for loan losses | (147,084 | ) | (150,272 | ) | ||||||||||||||||||||||||
Bank loans, net | $ | 6,094,929 | $ | 6,593,973 | ||||||||||||||||||||||||
-1 | Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs. | |||||||||||||||||||||||||||
Loan Purchases and Sales | ' | |||||||||||||||||||||||||||
The following table presents purchases and sales of any loans held for investment by portfolio segment: | ||||||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Purchases | Sales | Purchases | Sales | Purchases | Sales | |||||||||||||||||||||||
C&I loans | $ | 358,309 | $ | 176,186 | $ | 470,859 | (1) | $ | 85,090 | $ | 156,475 | $ | 57,209 | |||||||||||||||
CRE construction loans | — | — | 31,074 | (1) | — | — | — | |||||||||||||||||||||
CRE loans | 5,048 | — | 121,245 | (1) | — | 2,630 | — | |||||||||||||||||||||
Residential mortgage loans | 26,618 | — | 38,220 | — | 91,745 | — | ||||||||||||||||||||||
Consumer loans | — | — | 185,026 | (2) | — | — | — | |||||||||||||||||||||
Total | $ | 389,975 | $ | 176,186 | $ | 846,424 | $ | 85,090 | $ | 250,850 | $ | 57,209 | ||||||||||||||||
-1 | Includes a total of $367 million for a Canadian loan portfolio purchased during the year ended September 30, 2012, which was comprised of $219 million C&I, $31 million of CRE construction and $117 million of CRE loans. | |||||||||||||||||||||||||||
-2 | Represents loans primarily secured by the borrower’s marketable securities. | |||||||||||||||||||||||||||
Nonperforming Loans Held for Investment and Total Nonperforming Assets | ' | |||||||||||||||||||||||||||
The following table presents the comparative data for nonperforming loans held for investment and total nonperforming assets: | ||||||||||||||||||||||||||||
As of September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||||||||||
C&I loans | $ | 89 | $ | 19,517 | $ | 25,685 | $ | — | $ | — | ||||||||||||||||||
CRE loans | 25,512 | 8,404 | 15,842 | 67,071 | 73,961 | |||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 75,889 | 78,372 | 90,992 | 80,754 | 54,986 | |||||||||||||||||||||||
Home equity loans/lines | 468 | 367 | 67 | 71 | 111 | |||||||||||||||||||||||
Total nonaccrual loans | 101,958 | 106,660 | 132,586 | 147,896 | 129,058 | |||||||||||||||||||||||
Accruing loans which are 90 days past due: | ||||||||||||||||||||||||||||
CRE loans | — | — | — | 830 | 12,461 | |||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | — | — | 690 | 5,098 | 16,863 | |||||||||||||||||||||||
Home equity loans/lines | — | — | 47 | 159 | — | |||||||||||||||||||||||
Total accruing loans which are 90 days past due | — | — | 737 | 6,087 | 29,324 | |||||||||||||||||||||||
Total nonperforming loans | 101,958 | 106,660 | 133,323 | 153,983 | 158,382 | |||||||||||||||||||||||
Real estate owned and other repossessed assets, net: | ||||||||||||||||||||||||||||
CRE | — | 4,902 | 7,707 | 19,486 | 4,646 | |||||||||||||||||||||||
Residential: | ||||||||||||||||||||||||||||
First mortgage | 2,434 | 3,316 | 6,852 | 8,439 | 4,045 | |||||||||||||||||||||||
Home equity | — | — | 13 | — | — | |||||||||||||||||||||||
Total | 2,434 | 8,218 | 14,572 | 27,925 | 8,691 | |||||||||||||||||||||||
Total nonperforming assets, net | $ | 104,392 | $ | 114,878 | $ | 147,895 | $ | 181,908 | $ | 167,073 | ||||||||||||||||||
Total nonperforming assets, net as a % of RJ Bank total assets | 0.99 | % | 1.18 | % | 1.64 | % | 2.48 | % | 2.1 | % | ||||||||||||||||||
Analysis of the Payment Status of Loans Held for Investment | ' | |||||||||||||||||||||||||||
The following table presents an analysis of the payment status of loans held for investment: | ||||||||||||||||||||||||||||
30-59 | 60-89 | 90 days | Total | Current (1) | Total loans held for | |||||||||||||||||||||||
days | days | or more | past due | investment (2) | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
As of September 30, 2013: | ||||||||||||||||||||||||||||
C&I loans | $ | 135 | $ | — | $ | — | $ | 135 | $ | 5,245,870 | $ | 5,246,005 | ||||||||||||||||
CRE construction loans | — | — | — | — | 60,840 | 60,840 | ||||||||||||||||||||||
CRE loans | — | — | 17 | 17 | 1,283,029 | 1,283,046 | ||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 4,756 | 2,068 | 43,004 | 49,828 | 1,673,619 | 1,723,447 | ||||||||||||||||||||||
Home equity loans/lines | — | — | 372 | 372 | 21,831 | 22,203 | ||||||||||||||||||||||
Consumer loans | — | — | — | — | 555,805 | 555,805 | ||||||||||||||||||||||
Total loans held for investment, net | $ | 4,891 | $ | 2,068 | $ | 43,393 | $ | 50,352 | $ | 8,840,994 | $ | 8,891,346 | ||||||||||||||||
As of September 30, 2012: | ||||||||||||||||||||||||||||
C&I loans | $ | 222 | $ | — | $ | — | $ | 222 | $ | 5,018,609 | $ | 5,018,831 | ||||||||||||||||
CRE construction loans | — | — | — | — | 49,474 | 49,474 | ||||||||||||||||||||||
CRE loans | — | — | 4,960 | 4,960 | 931,490 | 936,450 | ||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 7,239 | 3,037 | 49,476 | 59,752 | 1,607,156 | 1,666,908 | ||||||||||||||||||||||
Home equity loans/lines | 88 | 250 | — | 338 | 24,740 | 25,078 | ||||||||||||||||||||||
Consumer loans | — | — | — | — | 352,495 | 352,495 | ||||||||||||||||||||||
Total loans held for investment, net | $ | 7,549 | $ | 3,287 | $ | 54,436 | $ | 65,272 | $ | 7,983,964 | $ | 8,049,236 | ||||||||||||||||
-1 | Includes $55.5 million and $48.6 million of nonaccrual loans at September 30, 2013 and 2012, respectively, which are performing pursuant to their contractual terms. | |||||||||||||||||||||||||||
-2 | Excludes any net unearned income and deferred expenses. | |||||||||||||||||||||||||||
Summary of Impaired Loans | ' | |||||||||||||||||||||||||||
The following table provides a summary of RJ Bank’s impaired loans: | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||
Gross | Unpaid | Allowance | Gross | Unpaid | Allowance | |||||||||||||||||||||||
recorded | principal | for losses | recorded | principal | for losses | |||||||||||||||||||||||
investment | balance | investment | balance | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Impaired loans with allowance for loan losses:(1) | ||||||||||||||||||||||||||||
C&I loans | $ | — | $ | — | $ | — | $ | 19,517 | $ | 30,314 | $ | 5,232 | ||||||||||||||||
CRE loans | 17 | 26 | 1 | 18 | 26 | 1 | ||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 52,624 | 77,240 | 6,646 | 70,985 | 106,384 | 9,214 | ||||||||||||||||||||||
Home equity loans/lines | 36 | 74 | 4 | 128 | 128 | 42 | ||||||||||||||||||||||
Total | 52,677 | 77,340 | 6,651 | 90,648 | 136,852 | 14,489 | ||||||||||||||||||||||
Impaired loans without allowance for loan losses:(2) | ||||||||||||||||||||||||||||
C&I loans | 89 | 94 | — | — | — | — | ||||||||||||||||||||||
CRE loans | 25,495 | 45,229 | — | 8,386 | 18,440 | — | ||||||||||||||||||||||
Residential - first mortgage loans | 21,445 | 32,617 | — | 9,247 | 15,354 | — | ||||||||||||||||||||||
Total | 47,029 | 77,940 | — | 17,633 | 33,794 | — | ||||||||||||||||||||||
Total impaired loans | $ | 99,706 | $ | 155,280 | $ | 6,651 | $ | 108,281 | $ | 170,646 | $ | 14,489 | ||||||||||||||||
-1 | Impaired loan balances have had reserves established based upon management’s analysis. | |||||||||||||||||||||||||||
-2 | When the discounted cash flow, collateral value or market value equals or exceeds the carrying value of the loan, then the loan does not require an allowance. These are generally loans in process of foreclosure that have already been adjusted to fair value. | |||||||||||||||||||||||||||
Average Balance of Impaired Loans and Interest Income Recognized | ' | |||||||||||||||||||||||||||
The average balance of the total impaired loans and the related interest income recognized in the Consolidated Statements of Income and Comprehensive Income are as follows: | ||||||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Average impaired loan balance: | ||||||||||||||||||||||||||||
C&I loans | $ | 15,398 | $ | 10,196 | $ | 8,673 | ||||||||||||||||||||||
CRE loans | 13,352 | 11,902 | 38,542 | |||||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | 77,511 | 86,854 | 85,863 | |||||||||||||||||||||||||
Home equity loans/lines | 93 | 138 | 142 | |||||||||||||||||||||||||
Total | $ | 106,354 | $ | 109,090 | $ | 133,220 | ||||||||||||||||||||||
Interest income recognized: | ||||||||||||||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||||||
First mortgage loans | $ | 1,644 | $ | 1,397 | $ | 955 | ||||||||||||||||||||||
Home equity loans/lines | — | 4 | 5 | |||||||||||||||||||||||||
Total | $ | 1,644 | $ | 1,401 | $ | 960 | ||||||||||||||||||||||
Impact of TDRs | ' | |||||||||||||||||||||||||||
The table below presents the TDRs that occurred during the respective periods presented: | ||||||||||||||||||||||||||||
Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
contracts | outstanding | outstanding | ||||||||||||||||||||||||||
recorded | recorded | |||||||||||||||||||||||||||
investment | investment | |||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Year ended September 30, 2013: | ||||||||||||||||||||||||||||
Residential – first mortgage loans | 56 | $ | 13,270 | $ | 13,551 | |||||||||||||||||||||||
Year ended September 30, 2012: | ||||||||||||||||||||||||||||
Residential – first mortgage loans | 20 | $ | 5,875 | $ | 6,283 | |||||||||||||||||||||||
Year ended September 30, 2011: | ||||||||||||||||||||||||||||
C&I loans | 1 | $ | 12,450 | $ | 12,034 | |||||||||||||||||||||||
CRE loans | 1 | 9,226 | 9,226 | |||||||||||||||||||||||||
Residential – first mortgage loans | 25 | 8,027 | 8,457 | |||||||||||||||||||||||||
Total | 27 | $ | 29,703 | $ | 29,717 | |||||||||||||||||||||||
Credit Quality of Held for Investment Loan Portfolio | ' | |||||||||||||||||||||||||||
RJ Bank’s credit quality of its held for investment loan portfolio is as follows: | ||||||||||||||||||||||||||||
Residential mortgage | ||||||||||||||||||||||||||||
C&I | CRE | CRE | First | Home | Consumer | Total | ||||||||||||||||||||||
construction | mortgage | equity | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Pass | $ | 5,012,786 | $ | 60,840 | $ | 1,257,130 | $ | 1,627,090 | $ | 21,582 | $ | 555,805 | $ | 8,535,233 | ||||||||||||||
Special mention (1) | 139,159 | — | 195 | 18,912 | 150 | — | 158,416 | |||||||||||||||||||||
Substandard (1) | 94,060 | — | 23,524 | 77,446 | 470 | — | 195,500 | |||||||||||||||||||||
Doubtful (1) | — | — | 2,197 | — | — | — | 2,197 | |||||||||||||||||||||
Total | $ | 5,246,005 | $ | 60,840 | $ | 1,283,046 | $ | 1,723,448 | $ | 22,202 | $ | 555,805 | $ | 8,891,346 | ||||||||||||||
September 30, 2012: | ||||||||||||||||||||||||||||
Pass | $ | 4,777,738 | $ | 49,474 | $ | 806,427 | $ | 1,564,257 | $ | 24,505 | $ | 352,495 | $ | 7,574,896 | ||||||||||||||
Special mention (1) | 179,044 | — | 59,001 | 22,606 | 206 | — | 260,857 | |||||||||||||||||||||
Substandard (1) | 60,323 | — | 67,578 | 80,045 | 367 | — | 208,313 | |||||||||||||||||||||
Doubtful (1) | 1,726 | — | 3,444 | — | — | — | 5,170 | |||||||||||||||||||||
Total | $ | 5,018,831 | $ | 49,474 | $ | 936,450 | $ | 1,666,908 | $ | 25,078 | $ | 352,495 | $ | 8,049,236 | ||||||||||||||
-1 | Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans. | |||||||||||||||||||||||||||
Performing Residential First Mortgage Loan Portfolio Summarized by Loan-to-value ratios | ' | |||||||||||||||||||||||||||
The table below presents the most recently available update of the performing residential first mortgage loan portfolio summarized by current LTV. The amounts in the table represent the entire loan balance: | ||||||||||||||||||||||||||||
Balance(1) | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
LTV range: | ||||||||||||||||||||||||||||
LTV less than 50% | $ | 380,480 | ||||||||||||||||||||||||||
LTV greater than 50% but less than 80% | 670,647 | |||||||||||||||||||||||||||
LTV greater than 80% but less than 100% | 276,525 | |||||||||||||||||||||||||||
LTV greater than 100%, but less than 120% | 83,970 | |||||||||||||||||||||||||||
LTV greater than 120% but less than 140% | 20,469 | |||||||||||||||||||||||||||
LTV greater than 140% | 4,070 | |||||||||||||||||||||||||||
Total | $ | 1,436,161 | ||||||||||||||||||||||||||
-1 | Excludes loans that have full repurchase recourse for any delinquent loans. | |||||||||||||||||||||||||||
Changes in the Allowance for Loan Losses | ' | |||||||||||||||||||||||||||
Changes in the allowance for loan losses of RJ Bank by portfolio segment are as follows: | ||||||||||||||||||||||||||||
Loans held for investment | ||||||||||||||||||||||||||||
Loans held | C&I | CRE | CRE | Residential | Consumer | Total | ||||||||||||||||||||||
for sale | construction | mortgage | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Year ended September 30, 2013: | ||||||||||||||||||||||||||||
Balance at beginning of year: | $ | — | $ | 92,409 | $ | 739 | $ | 27,546 | $ | 26,138 | $ | 709 | $ | 147,541 | ||||||||||||||
(Benefit) provision for loan losses | — | 4,505 | 273 | (301 | ) | (2,540 | ) | 628 | 2,565 | |||||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||||
Charge-offs | — | (813 | ) | — | (9,599 | ) | (6,771 | ) | (254 | ) | (17,437 | ) | ||||||||||||||||
Recoveries | — | 117 | — | 1,680 | 2,299 | 32 | 4,128 | |||||||||||||||||||||
Net charge-offs | — | (696 | ) | — | (7,919 | ) | (4,472 | ) | (222 | ) | (13,309 | ) | ||||||||||||||||
Foreign exchange translation adjustment | — | (224 | ) | (12 | ) | (60 | ) | — | — | (296 | ) | |||||||||||||||||
Balance at September 30, 2013 | $ | — | 95,994 | 1,000 | 19,266 | 19,126 | 1,115 | 136,501 | ||||||||||||||||||||
Year ended September 30, 2012: | ||||||||||||||||||||||||||||
Balance at beginning of year: | $ | 5 | $ | 81,267 | $ | 490 | $ | 30,752 | $ | 33,210 | $ | 20 | $ | 145,744 | ||||||||||||||
(Benefit) provision for loan losses | (5 | ) | 21,543 | 242 | (2,305 | ) | 5,655 | 764 | 25,894 | |||||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||||
Charge-offs | — | (10,486 | ) | — | (2,000 | ) | (15,270 | ) | (96 | ) | (27,852 | ) | ||||||||||||||||
Recoveries | — | — | — | 1,074 | 2,543 | 21 | 3,638 | |||||||||||||||||||||
Net charge-offs | — | (10,486 | ) | — | (926 | ) | (12,727 | ) | (75 | ) | (24,214 | ) | ||||||||||||||||
Foreign currency translation adjustment | — | 85 | 7 | 25 | — | — | 117 | |||||||||||||||||||||
Balance at September 30, 2012 | $ | — | $ | 92,409 | $ | 739 | $ | 27,546 | $ | 26,138 | $ | 709 | $ | 147,541 | ||||||||||||||
Year ended September 30, 2011: | ||||||||||||||||||||||||||||
Balance at beginning of year: | $ | 23 | $ | 60,464 | $ | 4,473 | $ | 47,771 | $ | 34,297 | $ | 56 | $ | 147,084 | ||||||||||||||
(Benefit) provision for loan losses | (18 | ) | 21,261 | (3,983 | ) | (3,485 | ) | 19,670 | 210 | 33,655 | ||||||||||||||||||
Net charge-offs: | ||||||||||||||||||||||||||||
Charge-offs | — | (458 | ) | — | (15,204 | ) | (22,501 | ) | (255 | ) | (38,418 | ) | ||||||||||||||||
Recoveries | — | — | — | 1,670 | 1,744 | 9 | 3,423 | |||||||||||||||||||||
Net charge-offs | — | (458 | ) | — | (13,534 | ) | (20,757 | ) | (246 | ) | (34,995 | ) | ||||||||||||||||
Balance at September 30, 2011 | $ | 5 | $ | 81,267 | $ | 490 | $ | 30,752 | $ | 33,210 | $ | 20 | $ | 145,744 | ||||||||||||||
Recorded Investment and Related Allowance for Loan Losses by Loan Portfolio Segment | ' | |||||||||||||||||||||||||||
The following table presents, by loan portfolio segment, RJ Bank’s recorded investment and related allowance for loan losses: | ||||||||||||||||||||||||||||
Loans held for investment | ||||||||||||||||||||||||||||
C&I | CRE | CRE | Residential | Consumer | Total | |||||||||||||||||||||||
construction | mortgage | |||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 1 | $ | 2,379 | $ | — | $ | 2,380 | ||||||||||||||||
Collectively evaluated for impairment | 95,994 | 1,000 | 19,265 | 16,747 | 1,115 | 134,121 | ||||||||||||||||||||||
Total allowance for loan losses | $ | 95,994 | $ | 1,000 | $ | 19,266 | $ | 19,126 | $ | 1,115 | $ | 136,501 | ||||||||||||||||
Recorded investment:(1) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 89 | $ | — | $ | 25,512 | $ | 36,648 | $ | — | $ | 62,249 | ||||||||||||||||
Collectively evaluated for impairment | 5,245,916 | 60,840 | 1,257,534 | 1,709,002 | 555,805 | 8,829,097 | ||||||||||||||||||||||
Total recorded investment | $ | 5,246,005 | $ | 60,840 | $ | 1,283,046 | $ | 1,745,650 | $ | 555,805 | $ | 8,891,346 | ||||||||||||||||
September 30, 2012: | ||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,232 | $ | — | $ | 1 | $ | 3,157 | $ | — | $ | 8,390 | ||||||||||||||||
Collectively evaluated for impairment | 87,177 | 739 | 27,545 | 22,981 | 709 | 139,151 | ||||||||||||||||||||||
Total allowance for loan losses | $ | 92,409 | $ | 739 | $ | 27,546 | $ | 26,138 | $ | 709 | $ | 147,541 | ||||||||||||||||
Recorded investment:(1) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 19,517 | $ | — | $ | 8,404 | $ | 26,851 | $ | — | $ | 54,772 | ||||||||||||||||
Collectively evaluated for impairment | 4,999,314 | 49,474 | 928,046 | 1,665,135 | 352,495 | 7,994,464 | ||||||||||||||||||||||
Total recorded investment | $ | 5,018,831 | $ | 49,474 | $ | 936,450 | $ | 1,691,986 | $ | 352,495 | $ | 8,049,236 | ||||||||||||||||
-1 | Excludes any net unearned income and deferred expenses. |
PREPAID_EXPENSES_AND_OTHER_ASS1
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Prepaid Expense and Other Assets [Abstract] | ' | |||||||
Prepaid Expenses and Other Assets | ' | |||||||
Prepaid expenses and other assets include the following: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Investments in company-owned life insurance (1) | $ | 244,921 | $ | 188,631 | ||||
Investment in FHLB stock | 12,125 | 13,192 | ||||||
Investment in FRB stock | 21,300 | 21,300 | ||||||
Prepaid expenses | 77,765 | 97,033 | ||||||
Low-income housing tax credit fund financing asset (2) | 33,670 | 41,588 | ||||||
Indemnification asset (3) | 171,135 | 197,898 | ||||||
Other assets | 50,509 | 45,924 | ||||||
Prepaid expenses and other assets | $ | 611,425 | $ | 605,566 | ||||
-1 | As of September 30, 2013, we own life insurance policies with a cumulative face value of $785.1 million. | |||||||
-2 | In a prior year, we sold an investment in a low-income housing tax credit fund and we guaranteed the return on investment to the purchaser. As a result of this guarantee obligation, we are the primary beneficiary of the fund (see Note 11 for further information regarding the consolidation of this fund) and we have accounted for this transaction as a financing. As a financing transaction, we continue to account for the asset transferred to the purchaser, and maintain a related liability corresponding to our obligations under the guarantee. As the benefits are delivered to the purchaser of the investment, this financing asset and the related liability decrease. A related financing liability in the amount of $33.7 million and $41.7 million is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2013 and 2012, respectively. See Note 20 for further discussion of our obligations under the guarantee. | |||||||
-3 | The indemnification asset primarily pertains to legal matters for which Regions has indemnified RJF in connection with our acquisition of Morgan Keegan. The liabilities related to such matters are included in trade and other payables on our Consolidated Statements of Financial Condition. See Notes 3 and 20 for additional information. |
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES [Abstract] | ' | |||||||||||||||||||||||
VIEs Where We are the Primary Beneficiary - Aggregate Assets and Liabilities | ' | |||||||||||||||||||||||
The aggregate assets and liabilities of the entities we consolidate are provided in the table below. | ||||||||||||||||||||||||
Aggregate | Aggregate | |||||||||||||||||||||||
assets (1) | liabilities (1) | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
LIHTC Funds | $ | 208,634 | $ | 78,055 | ||||||||||||||||||||
Guaranteed LIHTC Fund (2) | 81,712 | — | ||||||||||||||||||||||
Restricted Stock Trust Fund | 13,075 | 6,710 | ||||||||||||||||||||||
EIF Funds | 7,588 | — | ||||||||||||||||||||||
Total | $ | 311,009 | $ | 84,765 | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||
LIHTC Funds | $ | 234,592 | $ | 97,217 | ||||||||||||||||||||
Guaranteed LIHTC Fund (2) | 85,332 | 2,208 | ||||||||||||||||||||||
Restricted Stock Trust Fund | 15,387 | 7,508 | ||||||||||||||||||||||
EIF Funds | 15,736 | — | ||||||||||||||||||||||
Total | $ | 351,047 | $ | 106,933 | ||||||||||||||||||||
-1 | Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. | |||||||||||||||||||||||
-2 | In connection with one of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has guaranteed the investor members’ return on their investment in the fund (the “Guaranteed LIHTC Fund”). See Note 10 for information regarding the financing asset associated with this fund, and see Note 20 for additional information regarding this commitment. | |||||||||||||||||||||||
VIEs Where We are the Primary Beneficiary - Carrying Value of Assets, Liabilities, and Equity | ' | |||||||||||||||||||||||
The following table presents information about the carrying value of the assets, liabilities and equity of the VIEs which we consolidate and are included within our Consolidated Statements of Financial Condition. The noncontrolling interests presented in this table represent the portion of these net assets which are not ours. | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Assets segregated pursuant to regulations and other segregated assets | $ | 11,857 | $ | 14,230 | ||||||||||||||||||||
Receivables, other | 5,763 | 5,273 | ||||||||||||||||||||||
Investments in real estate partnerships held by consolidated variable interest entities | 272,096 | 299,611 | ||||||||||||||||||||||
Trust fund investment in RJF common stock (1) | 13,073 | 15,387 | ||||||||||||||||||||||
Prepaid expenses and other assets | 8,230 | 16,297 | ||||||||||||||||||||||
Total assets | $ | 311,019 | $ | 350,798 | ||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||||||
Trade and other payables | $ | 1,428 | $ | 2,804 | ||||||||||||||||||||
Intercompany payables | 6,390 | 8,603 | ||||||||||||||||||||||
Loans payable of consolidated variable interest entities (2) | 62,938 | 81,713 | ||||||||||||||||||||||
Total liabilities | 70,756 | 93,120 | ||||||||||||||||||||||
RJF equity | 6,175 | 6,105 | ||||||||||||||||||||||
Noncontrolling interests | 234,088 | 251,573 | ||||||||||||||||||||||
Total equity | 240,263 | 257,678 | ||||||||||||||||||||||
Total liabilities and equity | $ | 311,019 | $ | 350,798 | ||||||||||||||||||||
-1 | Included in treasury stock in our Consolidated Statements of Financial Condition. | |||||||||||||||||||||||
-2 | Comprised of several non-recourse loans. We are not contingently liable under any of these loans | |||||||||||||||||||||||
VIEs Where We are the Primary Beneficiary - Information about Net Income (Loss) of VIEs | ' | |||||||||||||||||||||||
The following table presents information about the net income (loss) of the VIEs which we consolidate, and is included within our Consolidated Statements of Income and Comprehensive Income. The noncontrolling interests presented in this table represent the portion of the net loss from these VIEs which is not ours. | ||||||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Interest | $ | 4 | $ | 3 | $ | 2 | ||||||||||||||||||
Other | 3,538 | 3,944 | 5,385 | |||||||||||||||||||||
Total revenues | 3,542 | 3,947 | 5,387 | |||||||||||||||||||||
Interest expense | 3,959 | 5,032 | 6,049 | |||||||||||||||||||||
Net revenues (expense) | (417 | ) | (1,085 | ) | (662 | ) | ||||||||||||||||||
Non-interest expenses | 27,292 | 25,207 | 18,670 | |||||||||||||||||||||
Net loss including noncontrolling interests | (27,709 | ) | (26,292 | ) | (19,332 | ) | ||||||||||||||||||
Net loss attributable to noncontrolling interests | (27,779 | ) | (26,860 | ) | (17,988 | ) | ||||||||||||||||||
Net income (loss) attributable to RJF | $ | 70 | $ | 568 | $ | (1,344 | ) | |||||||||||||||||
VIEs Where We Hold a Variable Interest but We are Not the Primary Beneficiary - Aggregate Assets, Liabilities, and Exposure to Loss | ' | |||||||||||||||||||||||
The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but concluded we are not the primary beneficiary, are provided in the table below. | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Aggregate | Aggregate | Our risk | Aggregate | Aggregate | Our risk | |||||||||||||||||||
assets | liabilities | of loss | assets | liabilities | of loss | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
LIHTC Funds | $ | 2,532,457 | $ | 762,346 | $ | 14,387 | $ | 2,198,049 | $ | 844,597 | $ | 22,501 | ||||||||||||
NMTC Funds | 140,499 | 278 | 13 | 140,680 | 209 | 13 | ||||||||||||||||||
Other Real Estate Limited Partnerships and LLCs | 30,240 | 35,512 | 212 | 31,107 | 35,512 | 1,145 | ||||||||||||||||||
Total | $ | 2,703,196 | $ | 798,136 | $ | 14,612 | $ | 2,369,836 | $ | 880,318 | $ | 23,659 | ||||||||||||
VIEs Where We Hold a Variable Interest but We are Not Required to Consolidate - Aggregate Assets, Liabilities, and Exposure to Loss | ' | |||||||||||||||||||||||
The aggregate assets, liabilities, and our exposure to loss from Managed Funds in which we hold a variable interest are provided in the table below: | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Aggregate | Aggregate | Our risk | Aggregate | Aggregate | Our risk | |||||||||||||||||||
assets | liabilities | of loss | assets | liabilities | of loss | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Managed Funds | $ | 56,321 | $ | 1,415 | $ | 202 | $ | 9,700 | $ | 1,689 | $ | 296 | ||||||||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land | $ | 20,104 | $ | 19,754 | ||||
Construction in process | 707 | 6,782 | ||||||
Software | 131,115 | 117,604 | ||||||
Buildings, leasehold and land improvements | 235,239 | 204,593 | ||||||
Furniture, fixtures, and equipment | 200,055 | 182,168 | ||||||
587,220 | 530,901 | |||||||
Less: Accumulated depreciation and amortization | (342,804 | ) | (299,706 | ) | ||||
Total property and equipment, net | $ | 244,416 | $ | 231,195 | ||||
GOODWILL_AND_IDENTIFIABLE_INTA1
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Goodwill and Net Identifiable Intangible Asset Balances | ' | |||||||||||||||||||
The following are our goodwill and net identifiable intangible asset balances as of the dates indicated: | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Goodwill | $ | 295,486 | $ | 300,111 | ||||||||||||||||
Identifiable intangible assets, net | 65,978 | 61,135 | ||||||||||||||||||
Total goodwill and identifiable intangible assets, net | $ | 361,464 | $ | 361,246 | ||||||||||||||||
Schedule of Goodwill Balance and Activity | ' | |||||||||||||||||||
The following summarizes our goodwill by segment, along with the balance and activity for the years indicated: | ||||||||||||||||||||
Segment | ||||||||||||||||||||
Private client group | Capital markets | Total | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Goodwill at September 30, 2011 | $ | 48,097 | $ | 23,827 | $ | 71,924 | ||||||||||||||
Additions (1) | 125,220 | 102,967 | 228,187 | |||||||||||||||||
Impairment losses | — | — | — | |||||||||||||||||
Goodwill at September 30, 2012 | $ | 173,317 | $ | 126,794 | $ | 300,111 | ||||||||||||||
Adjustments to prior year additions (2) | 1,267 | 1,041 | 2,308 | |||||||||||||||||
Impairment losses (3) | — | (6,933 | ) | (6,933 | ) | |||||||||||||||
Goodwill at September 30, 2013 | $ | 174,584 | $ | 120,902 | $ | 295,486 | ||||||||||||||
-1 | Additions are directly attributable to the acquisition of Morgan Keegan (see Notes 1 and 3 for additional information). | |||||||||||||||||||
-2 | The goodwill adjustment arose during the quarter ended December 31, 2012 from a change in a tax election pertaining to whether assets acquired and liabilities assumed are written-up to fair value for tax purposes. This election is made on an entity-by-entity basis, and during the period indicated, our assumption regarding whether we would make such election changed for one of the Morgan Keegan entities we acquired. The offsetting balance associated with this adjustment to goodwill was the net deferred tax asset. | |||||||||||||||||||
-3 | The impairment expense in the year ended September 30, 2013 is associated with the RJES reporting unit. We concluded the goodwill associated with this reporting unit to be completely impaired during the quarter ended March 31, 2013. Since we did not own 100% of RJES as of the goodwill impairment testing date, for the year ended September 30, 2013 the effect of this impairment expense on the pre-tax income attributable to Raymond James Financial, Inc. is approximately $4.6 million and the portion of the impairment expense attributable to the noncontrolling interests is approximately $2.3 million. | |||||||||||||||||||
Quantitative Analysis of Goodwill | ' | |||||||||||||||||||
The following summarizes certain key assumptions utilized in our quantitative analysis as of December 31, 2012: | ||||||||||||||||||||
Key assumptions | ||||||||||||||||||||
Weight assigned to the outcome of: | ||||||||||||||||||||
Segment | Reporting unit | Goodwill as of the impairment testing date (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: | MK & Co. - PCG | $ | 126,486 | 14 | % | 0.5x/10.0x | 50 | % | 50 | % | ||||||||||
RJ&A - PCG | 31,954 | 13 | % | 0.5x/13.5x | 50 | % | 50 | % | ||||||||||||
RJ Ltd. - PCG | 16,144 | 18 | % | 1.0x/12.0x | 50 | % | 50 | % | ||||||||||||
$ | 174,584 | |||||||||||||||||||
Capital markets: | RJ&A - fixed income | $ | 77,325 | 14 | % | 1.0x/9.0x | 50 | % | 50 | % | ||||||||||
RJ Ltd. - equity capital markets | 16,893 | 20 | % | 1.1x/11.0x | 50 | % | 50 | % | ||||||||||||
MK & Co. - fixed income | 13,646 | 16 | % | 0.9x/8.0x | 50 | % | 50 | % | ||||||||||||
RJ&A - equity capital markets | 13,038 | 15 | % | 0.3x/7.0x | 50 | % | 50 | % | ||||||||||||
120,902 | ||||||||||||||||||||
Total | $ | 295,486 | ||||||||||||||||||
Schedule of Net Amortizable Intangible Assets | ' | |||||||||||||||||||
The following summarizes our identifiable intangible asset balances by segment, net of accumulated amortization, and activity for the years indicated: | ||||||||||||||||||||
Segment | ||||||||||||||||||||
Private client group | Capital markets | Asset management | RJ Bank | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net identifiable intangible assets as of September 30, 2010 | $ | 397 | $ | 2,019 | $ | — | $ | — | $ | 2,416 | ||||||||||
Additions | — | — | — | — | — | |||||||||||||||
Amortization expense | (187 | ) | (1,186 | ) | — | — | (1,373 | ) | ||||||||||||
Impairment losses | — | — | — | — | — | |||||||||||||||
Net identifiable intangible assets as of September 30, 2011 | $ | 210 | $ | 833 | $ | — | $ | — | $ | 1,043 | ||||||||||
Additions (1) | 10,000 | 55,000 | — | — | 65,000 | |||||||||||||||
Amortization expense | (381 | ) | (4,527 | ) | — | — | (4,908 | ) | ||||||||||||
Impairment losses | — | — | — | — | — | |||||||||||||||
Net identifiable intangible assets as of September 30, 2012 | $ | 9,829 | $ | 51,306 | $ | — | $ | — | $ | 61,135 | ||||||||||
Additions | — | — | 13,329 | (2) | 1,085 | (3) | 14,414 | |||||||||||||
Amortization expense | (638 | ) | (7,832 | ) | (1,000 | ) | (101 | ) | (9,571 | ) | ||||||||||
Impairment losses | — | — | — | — | — | |||||||||||||||
Net identifiable intangible assets as of September 30, 2013 | $ | 9,191 | $ | 43,474 | $ | 12,329 | $ | 984 | $ | 65,978 | ||||||||||
-1 | The additions are directly attributable to the identified intangible assets associated with the Morgan Keegan acquisition, see Note 3 for further information regarding the acquisition. | |||||||||||||||||||
-2 | The additions are directly attributable to the customer list asset associated with our first quarter fiscal year 2013 acquisition of a 45% interest in ClariVest (see Note 3 for additional information). Since we are consolidating ClariVest, the amount represents the entire customer relationship intangible asset associated with the acquisition transaction; the amount shown is unadjusted by the 55% share of ClariVest attributable to others. The estimated useful life associated with this addition is approximately 10 years. | |||||||||||||||||||
-3 | The additions are the result of mortgage servicing rights held by RJ Bank. The estimated useful life associated with this addition is approximately 10 years. | |||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | |||||||||||||||||||
Identifiable intangible assets by type are presented below: | ||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||
Gross carrying value | Accumulated amortization | Gross carrying value | Accumulated amortization | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Customer relationships | $ | 65,957 | $ | (8,663 | ) | $ | 52,628 | $ | (3,060 | ) | ||||||||||
Trade name | 2,000 | (2,000 | ) | 2,000 | (1,000 | ) | ||||||||||||||
Developed technology | 11,000 | (3,300 | ) | 11,000 | (1,100 | ) | ||||||||||||||
Non-compete agreements | 1,000 | (1,000 | ) | 1,000 | (333 | ) | ||||||||||||||
Mortgage servicing rights | 1,085 | (101 | ) | — | — | |||||||||||||||
Total | $ | 81,042 | $ | (15,064 | ) | $ | 66,628 | $ | (5,493 | ) | ||||||||||
Schedule of Projected Amortization Expense | ' | |||||||||||||||||||
Projected amortization expense associated with the identifiable intangible assets by fiscal year is as follows: | ||||||||||||||||||||
Fiscal year ended September 30, | (in thousands) | |||||||||||||||||||
2014 | $ | 7,517 | ||||||||||||||||||
2015 | 7,427 | |||||||||||||||||||
2016 | 7,251 | |||||||||||||||||||
2017 | 6,144 | |||||||||||||||||||
2018 | 5,037 | |||||||||||||||||||
Thereafter | 32,602 | |||||||||||||||||||
$ | 65,978 | |||||||||||||||||||
BANK_DEPOSITS_Tables
BANK DEPOSITS (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Deposits [Abstract] | ' | |||||||||||||||
Summary of Bank Deposits | ' | |||||||||||||||
The following table presents a summary of bank deposits including the weighted-average rate: | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Balance | Weighted-average rate (1) | Balance | Weighted-average rate (1) | |||||||||||||
($ in thousands) | ||||||||||||||||
Bank deposits: | ||||||||||||||||
NOW accounts | $ | 7,003 | 0.01 | % | $ | 4,588 | 0.01 | % | ||||||||
Demand deposits (non-interest-bearing) | 8,555 | — | 44,800 | — | ||||||||||||
Savings and money market accounts | 8,966,439 | 0.02 | % | 8,231,446 | 0.04 | % | ||||||||||
Certificates of deposit | 313,374 | 1.96 | % | 318,879 | 2.13 | % | ||||||||||
Total bank deposits(2) | $ | 9,295,371 | 0.09 | % | $ | 8,599,713 | 0.12 | % | ||||||||
-1 | Weighted-average rate calculation is based on the actual deposit balances at September 30, 2013 and 2012, respectively. | |||||||||||||||
-2 | Bank deposits exclude affiliate deposits of approximately $6 million and $1 million at September 30, 2013 and 2012, respectively. | |||||||||||||||
Scheduled Maturities of Certificates of Deposit | ' | |||||||||||||||
Scheduled maturities of certificates of deposit are as follows: | ||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||
Denominations | Denominations | Denominations | Denominations | |||||||||||||
greater than or | less than $100,000 | greater than or | less than $100,000 | |||||||||||||
equal to $100,000 | equal to $100,000 | |||||||||||||||
(in thousands) | ||||||||||||||||
Three months or less | $ | 7,343 | $ | 8,540 | $ | 9,069 | $ | 7,195 | ||||||||
Over three through six months | 5,908 | 6,264 | 4,587 | 6,778 | ||||||||||||
Over six through twelve months | 9,459 | 13,976 | 12,414 | 16,339 | ||||||||||||
Over one through two years | 31,123 | 37,918 | 16,989 | 23,920 | ||||||||||||
Over two through three years | 33,404 | 27,873 | 32,043 | 38,074 | ||||||||||||
Over three through four years | 47,822 | 35,270 | 34,533 | 28,807 | ||||||||||||
Over four through five years | 36,574 | 11,900 | 50,647 | 37,484 | ||||||||||||
Total | $ | 171,633 | $ | 141,741 | $ | 160,282 | $ | 158,597 | ||||||||
Interest Expense on Deposits | ' | |||||||||||||||
Interest expense on deposits is summarized as follows: | ||||||||||||||||
Year ended September 30, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | ||||||||||||||||
Certificates of deposit | $ | 6,239 | $ | 6,501 | $ | 6,228 | ||||||||||
Money market, savings and NOW accounts | 2,793 | 2,983 | 6,315 | |||||||||||||
Total interest expense on deposits | $ | 9,032 | $ | 9,484 | $ | 12,543 | ||||||||||
OTHER_BORROWINGS_OTHER_BORROWI
OTHER BORROWINGS OTHER BORROWINGS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
OTHER BORROWINGS [Abstract] | ' | |||||||
Schedule of Other Borrowings | ' | |||||||
The following table details the components of other borrowings: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Other borrowings: | ||||||||
Borrowings on secured lines of credit (1) | $ | 84,076 | $ | — | ||||
Borrowings on unsecured lines of credit (2) | — | — | ||||||
Total other borrowings | $ | 84,076 | $ | — | ||||
-1 | Other than a $5 million borrowing outstanding on the New Regions Credit Agreement (as hereinafter defined) as of September 30, 2013, any borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities. | |||||||
On November 14, 2012, a subsidiary of RJF (the “Borrower”) entered into a Revolving Credit Agreement (the “New Regions Credit Agreement”) with Regions Bank, an Alabama banking corporation (the “Lender”). The New Regions Credit Agreement provides for a revolving line of credit from the Lender to the Borrower and is subject to a guarantee in favor of the Lender provided by RJF. The proceeds from any borrowings under the line will be used for working capital and general corporate purposes. The obligations under the New Regions Credit Agreement are secured by, subject to certain exceptions, all of the present and future ARS owned by the Borrower (the “Pledged ARS”). The amount of any borrowing under the New Regions Credit Agreement cannot exceed the lesser of 70% of the value of the Pledged ARS, or $100 million. The maximum amount available to borrow under the New Regions Credit Agreement was $100 million as of September 30, 2013, the outstanding borrowings were $5 million on such date. The New Regions Credit Agreement bears interest at a variable rate which is 2.75% in excess of LIBOR. The New Regions Credit Agreement expires on April 2, 2015. | ||||||||
Immediately preceding the execution of the New Regions Credit Agreement, all outstanding balances on the credit agreement which had been entered into with Regions on April 2, 2012 as a result of the Morgan Keegan acquisition (the “Initial Regions Credit Agreement”) were paid to the Lender by the Borrowers and such agreement was terminated. See Note 17 for further discussion. | ||||||||
-2 | Any borrowings on unsecured lines of credit are day-to-day and are generally utilized for cash management purposes. |
LOANS_PAYABLE_OF_CONSOLIDATED_1
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES [Abstract] | ' | |||||||
Variable Interest Entities' Loans Payable | ' | |||||||
VIEs’ loans payable are presented below: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Current portion of loans payable | $ | 19,061 | $ | 18,775 | ||||
Long-term portion of loans payable | 43,877 | 62,938 | ||||||
Total loans payable | $ | 62,938 | $ | 81,713 | ||||
Contractual Maturities of Variable Interest Entities' Borrowings | ' | |||||||
The principal amount of the VIEs’ borrowing, based on their contractual terms, mature as follows: | ||||||||
Fiscal year ended September 30, | (in thousands) | |||||||
2014 | $ | 19,061 | ||||||
2015 | 17,949 | |||||||
2016 | 13,331 | |||||||
2017 | 8,240 | |||||||
2018 | 3,668 | |||||||
Thereafter | 689 | |||||||
Total | $ | 62,938 | ||||||
CORPORATE_DEBT_Tables
CORPORATE DEBT (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Corporate Debt | ' | |||||||
The following summarizes our corporate debt: | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Mortgage notes payable (1) | $ | 45,662 | $ | 49,309 | ||||
4.25% senior notes, due 2016, net of unamortized discount of $255 thousand and $355 thousand at September 30, 2013 and 2012, respectively (2) | 249,745 | 249,645 | ||||||
8.60% senior notes, due 2019, net of unamortized discount of $30 thousand and $35 thousand at September 30, 2013 and 2012, respectively (3) | 299,970 | 299,965 | ||||||
5.625% senior notes, due 2024, net of unamortized discount of $869 thousand and $952 thousand at September 30, 2013 and 2012, respectively (4) | 249,131 | 249,048 | ||||||
6.90% senior notes, due 2042 (5) | 350,000 | 350,000 | ||||||
Other borrowings from banks (6) | — | 128,256 | ||||||
RJES term loan(7) | — | 2,870 | ||||||
Total corporate debt | $ | 1,194,508 | $ | 1,329,093 | ||||
-1 | Mortgage notes payable pertain to mortgage loans on our headquarters office complex. These mortgage loans are secured by land, buildings, and improvements with a net book value of $53.5 million at September 30, 2013. These mortgage loans bear interest at 5.7% with repayment terms of monthly interest and principal debt service and have a January 2023 maturity. | |||||||
-2 | In April 2011, we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 4.25% senior notes due April 2016. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 30 basis points, plus accrued and unpaid interest thereon to the redemption date. | |||||||
-3 | In August 2009, we sold in a registered underwritten public offering, $300 million in aggregate principal amount of 8.60% senior notes due August 2019. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points, plus accrued and unpaid interest thereon to the redemption date. | |||||||
-4 | In March 2012, we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 5.625% senior notes due April 2024. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points, plus accrued and unpaid interest thereon to the redemption date. | |||||||
-5 | In March 2012, we sold in a registered underwritten public offering, $350 million in aggregate principal amount of 6.90% senior notes due March 2042. Interest on these senior notes is payable quarterly in arrears. On or after March 15, 2017, we may redeem some or all of the senior notes at any time at the redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued interest thereon to the redemption date. | |||||||
-6 | The outstanding balance as of September 30, 2012, was comprised of the Initial Regions Credit Agreement. On November 14, 2012, the outstanding balance was repaid, the Initial Regions Credit Agreement was terminated and the New Regions Credit Agreement was executed (see Note 15 for additional information on the New Regions Credit Agreement secured line of credit). | |||||||
-7 | The RJES term loan was paid in full in June 2013. | |||||||
Schedule of Maturities of Corporate Debt | ' | |||||||
Our corporate debt matures as follows, based upon its contractual terms: | ||||||||
Fiscal year ended September 30, | (in thousands) | |||||||
2014 | $ | 3,530 | ||||||
2015 | 4,067 | |||||||
2016 | 254,050 | |||||||
2017 | 4,556 | |||||||
2018 | 4,823 | |||||||
Thereafter | 923,482 | |||||||
Total | $ | 1,194,508 | ||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
Notional and Fair Value Amounts of Asset and Liability Derivatives, by Balance Sheet Location | ' | |||||||||||||||||||
See the table below for the notional and fair value amounts of both the asset and liability derivatives. | ||||||||||||||||||||
Asset derivatives | ||||||||||||||||||||
September 30, 2013 | 30-Sep-12 | |||||||||||||||||||
Balance sheet | Notional | Fair | Balance sheet | Notional | Fair | |||||||||||||||
location | amount | value(1) | location | amount | value(1) | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate contracts(2) | Trading instruments | $ | 2,407,387 | $ | 89,633 | Trading instruments | $ | 2,376,049 | $ | 144,259 | ||||||||||
Interest rate contracts(3) | Derivative instruments associated with offsetting matched book positions | $ | 1,944,408 | $ | 250,341 | Derivative instruments associated with offsetting matched book positions | $ | 2,110,984 | $ | 458,265 | ||||||||||
Liability derivatives | ||||||||||||||||||||
September 30, 2013 | 30-Sep-12 | |||||||||||||||||||
Balance sheet | Notional | Fair | Balance sheet | Notional | Fair | |||||||||||||||
location | amount | value(1) | location | amount | value(1) | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Forward foreign exchange contracts | Trade and other payables | $ | 655,828 | $ | 637 | Trade and other payables | $ | 569,790 | $ | 1,296 | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate contracts(2) | Trading instruments sold | $ | 2,420,531 | $ | 74,920 | Trading instruments sold | $ | 2,288,450 | $ | 128,081 | ||||||||||
Interest rate contracts(3) | Derivative instruments associated with offsetting matched book positions | $ | 1,944,408 | $ | 250,341 | Derivative instruments associated with offsetting matched book positions | $ | 2,110,984 | $ | 458,265 | ||||||||||
Forward foreign exchange contracts | Trade and other payables | $ | 79,588 | $ | 77 | Trade and other payables | $ | 44,225 | $ | 74 | ||||||||||
-1 | The fair value in this table is presented on a gross basis before netting of cash collateral and before any netting by counterparty according to our legally enforceable master netting arrangements. The fair value in the Consolidated Statements of Financial Condition is presented net. | |||||||||||||||||||
-2 | These contracts arise from our OTC Derivatives Operations. | |||||||||||||||||||
-3 | These contracts arise from our Offsetting Matched Book Derivatives Operations. | |||||||||||||||||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ' | |||||||||||||||||||
See the table below for the impact of the derivatives not designated as hedging instruments on the Consolidated Statements of Income and Comprehensive Income: | ||||||||||||||||||||
Amount of gain (loss) on derivatives recognized in income | ||||||||||||||||||||
Year ended September 30, | ||||||||||||||||||||
Location of gain (loss) | 2013 | 2012 | 2011 | |||||||||||||||||
recognized on derivatives in the | ||||||||||||||||||||
Consolidated Statements of | ||||||||||||||||||||
Income and Comprehensive Income | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate contracts(1) | Net trading profits | $ | 993 | $ | (116 | ) | $ | 750 | ||||||||||||
Interest rate contracts (2) | Other revenues | $ | 225 | $ | 835 | $ | — | |||||||||||||
Forward foreign exchange contracts | Other revenues | $ | 1,577 | $ | (591 | ) | $ | — | ||||||||||||
-1 | These contracts arise from our OTC Derivatives Operations. | |||||||||||||||||||
-2 | These contracts arise from our Offsetting Matched Book Derivatives Operations. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Allocation of Income Taxes | ' | ||||||||||||||||||||
Total income taxes are allocated as follows: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Recorded in: | |||||||||||||||||||||
Income including noncontrolling interests | $ | 197,033 | $ | 175,656 | $ | 182,894 | |||||||||||||||
Equity, for compensation expense for tax purposes (in excess of) less than amounts recognized for financial reporting purposes | (2,590 | ) | (2,613 | ) | 374 | ||||||||||||||||
Equity, for cumulative currency translation adjustments | 6,861 | (5,741 | ) | — | |||||||||||||||||
Equity, for available for sale securities | 8,986 | 7,611 | 1,497 | ||||||||||||||||||
Total | $ | 210,290 | $ | 174,913 | $ | 184,765 | |||||||||||||||
Provision (Benefit) for Income Taxes | ' | ||||||||||||||||||||
Our provision (benefit) for income taxes consists of the following: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | 182,862 | $ | 133,890 | $ | 148,266 | |||||||||||||||
State and local | 37,491 | 29,141 | 29,387 | ||||||||||||||||||
Foreign | 8,469 | 10,581 | 11,249 | ||||||||||||||||||
228,822 | 173,612 | 188,902 | |||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | (25,673 | ) | 3,939 | (6,279 | ) | ||||||||||||||||
State and local | (5,023 | ) | 372 | (3,887 | ) | ||||||||||||||||
Foreign | (1,093 | ) | (2,267 | ) | 4,158 | ||||||||||||||||
(31,789 | ) | 2,044 | (6,008 | ) | |||||||||||||||||
Total provision for income tax | $ | 197,033 | $ | 175,656 | $ | 182,894 | |||||||||||||||
Reconciliation Between Income Tax Expense and the Amount Computed by Applying the Statutory Federal Income Tax Rate | ' | ||||||||||||||||||||
Our income tax expense differs from the amount computed by applying the statutory federal income tax rate of 35% due to the following: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Provision calculated at statutory rate | $ | 197,466 | 35 | % | $ | 165,034 | 35 | % | $ | 161,436 | 35 | % | |||||||||
State income tax, net of federal benefit | 21,662 | 3.8 | % | 19,566 | 4.1 | % | 16,575 | 3.6 | % | ||||||||||||
Tax-exempt interest income | (2,074 | ) | (0.4 | )% | (2,291 | ) | (0.5 | )% | (1,761 | ) | (0.4 | )% | |||||||||
(Income)/loss on company-owned life insurance which is not subject to tax | (7,809 | ) | (1.3 | )% | (8,318 | ) | (1.8 | )% | 1,146 | 0.2 | % | ||||||||||
Business tax credits including low income housing tax credits | (1,056 | ) | (0.2 | )% | (1,830 | ) | (0.4 | )% | (3,443 | ) | (0.7 | )% | |||||||||
Business expenses which are not tax-deductible | 4,920 | 0.9 | % | 3,752 | 0.8 | % | 3,072 | 0.7 | % | ||||||||||||
Incentive stock option expenses which are not tax-deductible | 2,471 | 0.4 | % | 2,843 | 0.6 | % | 2,633 | 0.6 | % | ||||||||||||
Reversal of deferred taxes provided on foreign earnings (1) | (10,676 | ) | (1.9 | )% | — | — | — | — | |||||||||||||
Other, net | (7,871 | ) | (1.4 | )% | (3,100 | ) | (0.7 | )% | 3,236 | 0.7 | % | ||||||||||
Total provision for income tax | $ | 197,033 | 34.9 | % | $ | 175,656 | 37.3 | % | $ | 182,894 | 39.7 | % | |||||||||
(1) We have historically provided deferred taxes for the presumed repatriation to the U.S. of earnings from certain foreign subsidiaries. Management changed its assertion related to the earnings of one of our Canadian subsidiaries resulting in a decrease in deferred tax liabilities related to undistributed foreign earnings. | |||||||||||||||||||||
U.S. and Foreign Components of Income Before Income Taxes | ' | ||||||||||||||||||||
U.S. and foreign components of income excluding noncontrolling interests and before provision for income taxes are as follows: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
U.S. | $ | 550,113 | $ | 456,175 | $ | 421,662 | |||||||||||||||
Foreign | 14,074 | 15,350 | 39,585 | ||||||||||||||||||
Income excluding noncontrolling interest and before provision for income taxes | $ | 564,187 | $ | 471,525 | $ | 461,247 | |||||||||||||||
Deferred Tax Asset (Liability) Items | ' | ||||||||||||||||||||
The cumulative effects of temporary differences that give rise to significant portions of the deferred tax asset (liability) items are as follows: | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||
Deferred compensation | $ | 128,801 | $ | 87,666 | |||||||||||||||||
Allowances for loan losses and reserves for unfunded commitments | 55,659 | 60,779 | |||||||||||||||||||
Unrealized loss associated with certain available for sale securities | 15,437 | 16,324 | |||||||||||||||||||
Accrued expenses | 28,868 | 18,759 | |||||||||||||||||||
Acquisition expense | 3,618 | 3,802 | |||||||||||||||||||
Net operating loss and credit carryforwards | 1,336 | 4,390 | |||||||||||||||||||
Other | 14,572 | 21,637 | |||||||||||||||||||
Total gross deferred tax assets | 248,291 | 213,357 | |||||||||||||||||||
Less: valuation allowance | (9 | ) | (9 | ) | |||||||||||||||||
Total deferred tax assets | 248,282 | 213,348 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Partnership investments | (24,245 | ) | (11,579 | ) | |||||||||||||||||
Goodwill and other intangibles | (12,469 | ) | (6,467 | ) | |||||||||||||||||
Undistributed earnings of foreign subsidiaries | (9,344 | ) | (19,373 | ) | |||||||||||||||||
Fixed assets | (5,082 | ) | (2,275 | ) | |||||||||||||||||
Leveraged lease | — | (4,668 | ) | ||||||||||||||||||
Other | (1,982 | ) | (799 | ) | |||||||||||||||||
Total deferred tax liabilities | (53,122 | ) | (45,161 | ) | |||||||||||||||||
Net deferred tax assets | $ | 195,160 | $ | 168,187 | |||||||||||||||||
Aggregate Changes in Liability for Unrecognized Tax Benefits | ' | ||||||||||||||||||||
The aggregate change in the balances for unrecognized tax benefits including interest and penalties are as follows: | |||||||||||||||||||||
Year ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance for unrecognized tax benefits at beginning of year | $ | 12,672 | $ | 4,730 | $ | 4,308 | |||||||||||||||
Increases for tax positions related to the current year | 3,118 | 2,420 | 1,199 | ||||||||||||||||||
Increases for tax positions related to prior years | 4,484 | (1) | 6,559 | (1) | 551 | ||||||||||||||||
Decreases for tax positions related to prior years | (352 | ) | (196 | ) | (44 | ) | |||||||||||||||
Decreases due to lapsed statute of limitations | (1,119 | ) | (841 | ) | (1,284 | ) | |||||||||||||||
Balance for unrecognized tax benefits at end of year | $ | 18,803 | $ | 12,672 | $ | 4,730 | |||||||||||||||
-1 | The increase is due to tax positions taken in previously filed tax returns with certain states. We continue to evaluate these positions and intend to contest the proposed adjustments made by taxing authorities. |
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 12 Months Ended | |||
Sep. 30, 2013 | ||||
COMMITMENTS, CONTINGENCIES AND GUARANTEES [Abstract] | ' | |||
Approximate Market Value of Collateral Received that Can Be Repledged | ' | |||
At September 30, 2013, the approximate market values of collateral received that we can repledge were: | ||||
Sources of collateral | ||||
(in thousands) | ||||
Securities purchased under agreements to resell and other collateralized financings | $ | 725,935 | ||
Securities received in securities borrowed vs. cash transactions | 143,108 | |||
Collateral received for margin loans | 1,440,250 | |||
Securities received as collateral related to derivative contracts | 6,409 | |||
Total | $ | 2,315,702 | ||
Approximate Market Values of Collateral Repledged | ' | |||
Certain collateral was repledged. At September 30, 2013, the approximate market values of this portion of collateral and financial instruments that we own and pledged were: | ||||
Uses of collateral | ||||
and trading securities | ||||
(in thousands) | ||||
Securities sold under agreements to repurchase | $ | 313,548 | ||
Securities delivered in securities loaned vs. cash transactions | 342,096 | |||
Securities pledged as collateral under secured borrowing arrangements | 116,952 | |||
Collateral used for deposits at clearing organizations | 207,468 | |||
Total | $ | 980,064 | ||
OTHER_COMPREHENSIVE_INCOME_Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Activity in Other Comprehensive Income and Related Tax Effects | ' | |||||||||||
The activity in other comprehensive income and related tax effects are as follows: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Net unrealized gain on available for sale securities, (net of tax effect of $9 million in fiscal year 2013, $7.6 million in fiscal year 2012, and $1.5 million in fiscal year 2011) | $ | 15,042 | $ | 12,886 | $ | 2,621 | ||||||
Net change in currency translations and net investment hedges (net of a tax effect of $6.9 million in fiscal year 2013 and ($5.7) million in fiscal year 2012)(1) | (13,763 | ) | 6,166 | (6,029 | ) | |||||||
Other comprehensive income (loss) | $ | 1,279 | $ | 19,052 | $ | (3,408 | ) | |||||
Components of Accumulated Other Comprehensive Income, Net of Income Taxes | ' | |||||||||||
The components of accumulated other comprehensive income, net of income taxes, are as follows: | ||||||||||||
September 30, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Net unrealized loss on available for sale securities, (net of tax effects of ($700) thousand at September 30, 2013 and ($9.7) million at September 30, 2012) | $ | (1,276 | ) | $ | (16,318 | ) | ||||||
Net currency translations and net investment hedges (net of a tax effect of $1.1 million at September 30, 2013 and ($5.7) million at September 30, 2012) (1) | 12,002 | 25,765 | ||||||||||
Accumulated other comprehensive income | $ | 10,726 | $ | 9,447 | ||||||||
INTEREST_INCOME_AND_INTEREST_E1
INTEREST INCOME AND INTEREST EXPENSE (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Interest Income (Expense), Net [Abstract] | ' | ||||||||||||
Interest Income and Interest Expense | ' | ||||||||||||
The components of interest income and interest expense are as follows: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Interest income: | |||||||||||||
Margin balances | $ | 60,931 | $ | 60,104 | $ | 52,361 | |||||||
Assets segregated pursuant to regulations and other segregated assets | 17,251 | 16,050 | 16,343 | ||||||||||
Bank loans, net of unearned income | 335,964 | 319,211 | 270,057 | ||||||||||
Available for sale securities | 8,005 | 9,076 | 10,815 | ||||||||||
Trading instruments | 20,089 | 20,977 | 20,549 | ||||||||||
Stock loan | 8,271 | 9,110 | 6,035 | ||||||||||
Loans to financial advisors | 6,510 | 4,797 | 4,688 | ||||||||||
Corporate cash and all other | 16,578 | 13,933 | 11,470 | ||||||||||
Total interest income | 473,599 | 453,258 | 392,318 | ||||||||||
Interest expense: | |||||||||||||
Brokerage client liabilities | 2,049 | 2,213 | 3,422 | ||||||||||
Retail bank deposits | 9,032 | 9,484 | 12,543 | ||||||||||
Trading instruments sold but not yet purchased | 3,595 | 2,437 | 3,621 | ||||||||||
Stock borrow | 2,158 | 1,976 | 1,807 | ||||||||||
Borrowed funds | 4,724 | 5,915 | 3,969 | ||||||||||
Senior notes | 76,113 | 58,523 | 31,320 | ||||||||||
Interest expense of consolidated VIEs | 3,959 | 5,032 | 6,049 | ||||||||||
Other | 8,741 | 5,789 | 3,099 | ||||||||||
Total interest expense | 110,371 | 91,369 | 65,830 | ||||||||||
Net interest income | 363,228 | 361,889 | 326,488 | ||||||||||
Subtract: provision for loan losses | (2,565 | ) | (25,894 | ) | (33,655 | ) | |||||||
Net interest income after provision for loan losses | $ | 360,663 | $ | 335,995 | $ | 292,833 | |||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock Options [Member] | ' | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||
Expense and Income Tax Benefits Related to Awards | ' | |||||||||||
Expense and income tax benefits related to our stock options awards granted to employees and members of our Board of Directors are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 8,382 | $ | 9,623 | $ | 7,319 | ||||||
Income tax benefits related to share-based expense | 596 | 701 | 319 | |||||||||
Weighted-Average Assumptions Used for Stock Option Grants | ' | |||||||||||
The fair value of each fixed option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for stock option grants in fiscal years 2013, 2012 and 2011: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Dividend yield | 1.37 | % | 1.84 | % | 1.8 | % | ||||||
Expected volatility | 39.38 | % | 45.17 | % | 43.74 | % | ||||||
Risk-free interest rate | 0.67 | % | 0.91 | % | 1.41 | % | ||||||
Expected lives (in years) | 5.5 | 4.6 | 4.9 | |||||||||
Summary of Option Activity | ' | |||||||||||
A summary of option activity for grants to employees and members of our Board of Directors for the fiscal year ended September 30, 2013 is presented below: | ||||||||||||
Options | Weighted- average exercise | Weighted- average remaining contractual | Aggregate intrinsic | |||||||||
for shares | price ($) | term (years) | value ($) | |||||||||
Outstanding at October 1, 2012 | 4,392,270 | $ | 27.14 | |||||||||
Granted | 840,150 | 37.96 | ||||||||||
Exercised | (1,262,076 | ) | 28.87 | |||||||||
Forfeited | (126,635 | ) | 27.8 | |||||||||
Expired | (900 | ) | 30.89 | |||||||||
Outstanding at September 30, 2013 | 3,842,809 | $ | 28.92 | 3.19 | $ | 49,032,000 | ||||||
Exercisable at September 30, 2013 | 584,627 | $ | 26.16 | 1.16 | $ | 9,066,000 | ||||||
Option Activity, Additional Disclosures | ' | |||||||||||
The following stock option activity occurred under the 2012 Plan for grants to employees and members of our Board of Directors: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands, except per option amounts) | ||||||||||||
Weighted-average grant date fair value per option | $ | 12.06 | $ | 9.67 | $ | 9.62 | ||||||
Total intrinsic value of stock options exercised | 14,240 | 3,222 | 10,553 | |||||||||
Total grant date fair value of stock options vested | 11,598 | 3,965 | 9,206 | |||||||||
Restricted Stock [Member] | ' | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||
Expense and Income Tax Benefits Related to Awards | ' | |||||||||||
Expense and income tax benefits related to our restricted stock awards are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 48,621 | $ | 39,588 | $ | 30,179 | ||||||
Income tax benefits related to share-based expense | 16,607 | 13,186 | 11,468 | |||||||||
Expense and income tax benefits related to our restricted stock awards granted to our independent contractor financial advisors are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 829 | $ | 2,062 | $ | 923 | ||||||
Income tax benefits related to share-based expense | 315 | 783 | 351 | |||||||||
Summary of Option Activity | ' | |||||||||||
The following activity for our independent contractor financial advisors occurred during the fiscal year ended September 30, 2013: | ||||||||||||
Shares/Units | Weighted- average | |||||||||||
reporting date | ||||||||||||
fair value ($) | ||||||||||||
Non-vested at October 1, 2012 | 105,945 | $ | 36.65 | |||||||||
Granted | — | |||||||||||
Vested | (74,356 | ) | ||||||||||
Forfeited | (5,405 | ) | ||||||||||
Non-vested at September 30, 2013 | 26,184 | $ | 41.67 | |||||||||
Summary of Restricted Stock and Restricted Stock Units Award Activity | ' | |||||||||||
The following activity occurred during the fiscal year ended September 30, 2013: | ||||||||||||
Shares/Units | Weighted- average | |||||||||||
grant date | ||||||||||||
fair value ($) | ||||||||||||
Non-vested at October 1, 2012 | 6,050,789 | $ | 29.87 | |||||||||
Granted | 1,001,231 | 38.12 | ||||||||||
Vested | (954,805 | ) | 26.86 | |||||||||
Forfeited | (179,804 | ) | 33.16 | |||||||||
Non-vested at September 30, 2013 | 5,917,411 | $ | 31.66 | |||||||||
NONEMPLOYEE_SHAREBASED_AND_OTH1
NON-EMPLOYEE SHARE-BASED AND OTHER COMPENSATION (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Non Employee Stock Option Plan [Member] | ' | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | |||||||||||
Expense and income tax benefits related to stock option grants to our independent contractor financial advisors are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 1,282 | $ | 2,033 | $ | 952 | ||||||
Income tax benefits related to share-based expense | 487 | 773 | 362 | |||||||||
Weighted-Average Assumptions Used for Stock Option Grants | ' | |||||||||||
The fair value of each option grant awarded to an independent contractor financial advisor is estimated on the date of grant and periodically revalued using the Black-Scholes option pricing model with the following weighted-average assumptions used for fiscal years ended 2013, 2012 and 2011: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Dividend yield | 1.34 | % | 1.52 | % | 1.62 | % | ||||||
Expected volatility | 39.88 | % | 43.84 | % | 44.14 | % | ||||||
Risk-free interest rate | 1.16 | % | 0.73 | % | 0.65 | % | ||||||
Expected lives (in years) | 3.32 | 3.27 | 2.54 | |||||||||
Summary of Option Activity | ' | |||||||||||
A summary of independent contractor financial advisors option activity for the fiscal year ended September 30, 2013 is presented below: | ||||||||||||
Options | Weighted-average exercise | Weighted-average remaining contractual | Aggregate intrinsic | |||||||||
for shares | price ($) | term (years) | value ($) | |||||||||
Outstanding at October 1, 2012 | 320,750 | $ | 27.87 | — | ||||||||
Granted | 47,600 | 37.87 | — | |||||||||
Exercised | (133,900 | ) | 31.4 | — | ||||||||
Forfeited | (4,300 | ) | 26.76 | — | ||||||||
Expired | (1,900 | ) | 31.78 | — | ||||||||
Outstanding at September 30, 2013 | 228,250 | $ | 27.88 | 3.05 | $ | 3,148,000 | ||||||
Exercisable at September 30, 2013 | 13,000 | $ | 30.44 | 0.16 | $ | 146,000 | ||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | ' | |||||||||||
The following activity for our independent contractor financial advisors occurred as follows: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total intrinsic value of stock options exercised | $ | 985 | $ | 783 | $ | 3,300 | ||||||
Total fair value of stock options vested | 347 | 1,116 | 1,448 | |||||||||
Restricted Stock [Member] | ' | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | |||||||||||
Expense and income tax benefits related to our restricted stock awards are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 48,621 | $ | 39,588 | $ | 30,179 | ||||||
Income tax benefits related to share-based expense | 16,607 | 13,186 | 11,468 | |||||||||
Expense and income tax benefits related to our restricted stock awards granted to our independent contractor financial advisors are presented below: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Total share-based expense | $ | 829 | $ | 2,062 | $ | 923 | ||||||
Income tax benefits related to share-based expense | 315 | 783 | 351 | |||||||||
Summary of Option Activity | ' | |||||||||||
The following activity for our independent contractor financial advisors occurred during the fiscal year ended September 30, 2013: | ||||||||||||
Shares/Units | Weighted- average | |||||||||||
reporting date | ||||||||||||
fair value ($) | ||||||||||||
Non-vested at October 1, 2012 | 105,945 | $ | 36.65 | |||||||||
Granted | — | |||||||||||
Vested | (74,356 | ) | ||||||||||
Forfeited | (5,405 | ) | ||||||||||
Non-vested at September 30, 2013 | 26,184 | $ | 41.67 | |||||||||
REGULATIONS_AND_CAPITAL_REQUIR1
REGULATIONS AND CAPITAL REQUIREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Raymond James Financial Inc [Member] | ' | ||||||||||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ||||||||||||||||||||
Summary of Minimum Requirements Under Regulatory Framework | ' | ||||||||||||||||||||
To be categorized as “well capitalized,” RJF must maintain total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. | |||||||||||||||||||||
Actual | Requirement for capital | To be well capitalized under prompt | |||||||||||||||||||
adequacy purposes | corrective action | ||||||||||||||||||||
provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
($ in thousands) | |||||||||||||||||||||
RJF as of September 30, 2013: | |||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 3,445,136 | 19.8 | % | $ | 1,391,974 | 8 | % | $ | 1,739,968 | 10 | % | |||||||||
Tier I capital (to risk-weighted assets) | 3,294,595 | 18.9 | % | 697,269 | 4 | % | 1,045,903 | 6 | % | ||||||||||||
Tier I capital (to adjusted assets) | 3,294,595 | 14.5 | % | 908,854 | 4 | % | 1,136,067 | 5 | % | ||||||||||||
RJF as of September 30, 2012: | |||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 3,056,794 | 18.9 | % | $ | 1,293,881 | 8 | % | $ | 1,617,351 | 10 | % | |||||||||
Tier I capital (to risk-weighted assets) | 2,896,279 | 17.9 | % | 647,213 | 4 | % | 970,820 | 6 | % | ||||||||||||
Tier I capital (to adjusted assets) | 2,896,279 | 14 | % | 827,508 | 4 | % | 1,034,385 | 5 | % | ||||||||||||
RJ Bank [Member] | ' | ||||||||||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ||||||||||||||||||||
Summary of Minimum Requirements Under Regulatory Framework | ' | ||||||||||||||||||||
To be categorized as “well capitalized,” RJ Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below. | |||||||||||||||||||||
Actual | Requirement for capital | To be well capitalized under prompt | |||||||||||||||||||
adequacy purposes | corrective action | ||||||||||||||||||||
provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
($ in thousands) | |||||||||||||||||||||
RJ Bank as of September 30, 2013: | |||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 1,234,268 | 13 | % | $ | 758,996 | 8 | % | $ | 948,745 | 10 | % | |||||||||
Tier I capital (to risk-weighted assets) | 1,115,113 | 11.8 | % | 379,498 | 4 | % | 569,247 | 6 | % | ||||||||||||
Tier I capital (to adjusted assets) | 1,115,113 | 10.4 | % | 430,154 | 4 | % | 537,692 | 5 | % | ||||||||||||
RJ Bank as of September 30, 2012: | |||||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 1,158,139 | 13.4 | % | $ | 694,275 | 8 | % | $ | 867,844 | 10 | % | |||||||||
Tier I capital (to risk-weighted assets) | 1,049,060 | 12.1 | % | 347,137 | 4 | % | 520,706 | 6 | % | ||||||||||||
Tier I capital (to adjusted assets) | 1,049,060 | 10.9 | % | 386,245 | 4 | % | 482,807 | 5 | % | ||||||||||||
Raymond James and Associates Inc [Member] | ' | ||||||||||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ||||||||||||||||||||
Net Capital and Risk Adjusted Capital Positions of Certain Businesses and Subsidiaries | ' | ||||||||||||||||||||
The net capital position of our wholly owned broker-dealer subsidiary RJ&A is as follows: | |||||||||||||||||||||
As of September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Raymond James & Associates, Inc.: | |||||||||||||||||||||
(Alternative Method elected) | |||||||||||||||||||||
Net capital as a percent of aggregate debit items | 23.14 | % | 17.22 | % | |||||||||||||||||
Net capital | $ | 435,343 | $ | 264,315 | |||||||||||||||||
Less: required net capital | (37,625 | ) | (30,696 | ) | |||||||||||||||||
Excess net capital | $ | 397,718 | $ | 233,619 | |||||||||||||||||
MK&Co [Member] | ' | ||||||||||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ||||||||||||||||||||
Net Capital and Risk Adjusted Capital Positions of Certain Businesses and Subsidiaries | ' | ||||||||||||||||||||
The net capital position of our wholly owned broker-dealer subsidiary MK & Co. is as follows: | |||||||||||||||||||||
As of September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(As amended) (1) | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
Morgan Keegan & Company, Inc.: | |||||||||||||||||||||
(Alternative Method elected) | |||||||||||||||||||||
Net capital as a percent of aggregate debit items | — | 65.84 | % | ||||||||||||||||||
Net capital | $ | 6,047 | $ | 263,366 | |||||||||||||||||
Less: required net capital | (250 | ) | (8,432 | ) | |||||||||||||||||
Excess net capital | $ | 5,797 | $ | 254,934 | |||||||||||||||||
Raymond James Financial Services Inc [Member] | ' | ||||||||||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ||||||||||||||||||||
Net Capital and Risk Adjusted Capital Positions of Certain Businesses and Subsidiaries | ' | ||||||||||||||||||||
The net capital position of our wholly owned broker-dealer subsidiary RJFS is as follows: | |||||||||||||||||||||
As of September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Raymond James Financial Services, Inc.: | |||||||||||||||||||||
(Alternative Method elected) | |||||||||||||||||||||
Net capital | $ | 18,103 | $ | 11,689 | |||||||||||||||||
Less: required net capital | (250 | ) | (250 | ) | |||||||||||||||||
Excess net capital | $ | 17,853 | $ | 11,439 | |||||||||||||||||
Raymond James Ltd [Member] | ' | ||||||||||||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ||||||||||||||||||||
Net Capital and Risk Adjusted Capital Positions of Certain Businesses and Subsidiaries | ' | ||||||||||||||||||||
The risk adjusted capital of RJ Ltd. is as follows (in Canadian dollars): | |||||||||||||||||||||
As of September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Raymond James Ltd.: | |||||||||||||||||||||
Risk adjusted capital before minimum | $ | 52,777 | $ | 77,871 | |||||||||||||||||
Less: required minimum capital | (250 | ) | (250 | ) | |||||||||||||||||
Risk adjusted capital | $ | 52,527 | $ | 77,621 | |||||||||||||||||
FINANCIAL_INSTRUMENTS_WITH_OFF1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | ' | |||||||
Summary of Commitments to Extend Credit and Other Credit-Related Off-Balance Sheet Financial Instruments Outstanding | ' | |||||||
A summary of commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding follows: | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Standby letters of credit | $ | 122,672 | $ | 140,688 | ||||
Open end consumer lines of credit | 829,923 | 480,304 | ||||||
Commercial lines of credit | 1,743,594 | 1,804,771 | ||||||
Unfunded loan commitments | 216,918 | 101,077 | ||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||
The following table presents the computation of basic and diluted earnings per share: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Income for basic earnings per common share: | |||||||||||||
Net income attributable to RJF | $ | 367,154 | $ | 295,869 | $ | 278,353 | |||||||
Less allocation of earnings and dividends to participating securities (1) | (4,164 | ) | (5,958 | ) | (8,777 | ) | |||||||
Net income attributable to RJF common shareholders | $ | 362,990 | $ | 289,911 | $ | 269,576 | |||||||
Income for diluted earnings per common share: | |||||||||||||
Net income attributable to RJF | $ | 367,154 | $ | 295,869 | $ | 278,353 | |||||||
Less allocation of earnings and dividends to participating securities (1) | (4,100 | ) | (5,926 | ) | (8,756 | ) | |||||||
Net income attributable to RJF common shareholders | $ | 363,054 | $ | 289,943 | $ | 269,597 | |||||||
Common shares: | |||||||||||||
Average common shares in basic computation | 137,732 | 130,806 | 122,448 | ||||||||||
Dilutive effect of outstanding stock options and certain restricted stock units | 2,809 | 985 | 388 | ||||||||||
Average common shares used in diluted computation | 140,541 | 131,791 | 122,836 | ||||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 2.64 | $ | 2.22 | $ | 2.2 | |||||||
Diluted | $ | 2.58 | $ | 2.2 | $ | 2.19 | |||||||
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive | 1,153 | 1,928 | 2,136 | ||||||||||
-1 | Represents dividends paid during the period to participating securities plus an allocation of undistributed earnings to participating securities. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of 1.6 million, 2.7 million and 4 million for the years ended September 30, 2013, 2012 and 2011, respectively. Dividends paid to participating securities amounted to $800 thousand, $1.4 million and $1.9 million for the years ended September 30, 2013, 2012, and 2011 respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. | ||||||||||||
Dividends per Common Share Declared and Paid | ' | ||||||||||||
Dividends per common share declared and paid are as follows: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividends per common share - declared | $ | 0.56 | $ | 0.52 | $ | 0.52 | |||||||
Dividends per common share - paid | $ | 0.55 | $ | 0.52 | $ | 0.5 | |||||||
SEGMENT_ANALYSIS_Tables
SEGMENT ANALYSIS (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Information Concerning Operations on a Segment Basis | ' | ||||||||||||
Information concerning operations in these segments of business is as follows: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Revenues: | |||||||||||||
Private Client Group | $ | 2,930,603 | $ | 2,484,670 | $ | 2,192,422 | |||||||
Capital Markets | 945,477 | 820,852 | 707,460 | ||||||||||
Asset Management | 292,817 | 237,224 | 226,511 | ||||||||||
RJ Bank | 356,130 | 345,693 | 281,992 | ||||||||||
Other | 126,401 | 58,412 | 27,329 | ||||||||||
Intersegment eliminations | (55,630 | ) | (48,951 | ) | (35,828 | ) | |||||||
Total revenues(1) | $ | 4,595,798 | $ | 3,897,900 | $ | 3,399,886 | |||||||
Income (loss) excluding noncontrolling interests and before provision for income taxes: | |||||||||||||
Private Client Group | $ | 230,315 | $ | 215,091 | $ | 220,299 | |||||||
Capital Markets | 102,171 | 75,755 | 82,521 | ||||||||||
Asset Management | 96,300 | 67,241 | 66,176 | ||||||||||
RJ Bank | 267,714 | 240,158 | 172,993 | ||||||||||
Other | (132,313 | ) | (2) | (126,720 | ) | (2) | (80,742 | ) | (3) | ||||
Pre-tax income excluding noncontrolling interests | 564,187 | 471,525 | 461,247 | ||||||||||
Add: net loss attributable to noncontrolling interests | 29,723 | (3,604 | ) | (10,502 | ) | ||||||||
Income including noncontrolling interests and before provision for income taxes | $ | 593,910 | $ | 467,921 | $ | 450,745 | |||||||
-1 | No individual client accounted for more than ten percent of total revenues in any of the years presented. | ||||||||||||
-2 | The Other segment includes acquisition related expenses pertaining to our acquisitions in the amount of $73.5 million and $59.3 million for the years ended September 30, 2013 and 2012, respectively (see Note 3 for further information regarding our acquisitions). | ||||||||||||
-3 | The Other segment for the year ended September 30, 2011 includes a $41 million loss provision for auction rate securities (see Note 7 for additional information). | ||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Net interest income (expense): | |||||||||||||
Private Client Group | $ | 85,301 | $ | 84,827 | $ | 71,724 | |||||||
Capital Markets | 4,076 | 6,641 | 6,166 | ||||||||||
Asset Management | 81 | (17 | ) | 107 | |||||||||
RJ Bank | 338,844 | 322,024 | 271,306 | ||||||||||
Other | (65,074 | ) | (51,586 | ) | (22,815 | ) | |||||||
Net interest income | $ | 363,228 | $ | 361,889 | $ | 326,488 | |||||||
The following table presents our total assets on a segment basis: | |||||||||||||
September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Total assets: | |||||||||||||
Private Client Group (1) | $ | 7,649,030 | $ | 6,917,562 | |||||||||
Capital Markets (2) | 2,548,663 | 2,558,143 | |||||||||||
Asset Management | 149,436 | 81,838 | |||||||||||
RJ Bank | 10,489,524 | 9,701,996 | |||||||||||
Other | 2,349,469 | 1,900,726 | |||||||||||
Total | $ | 23,186,122 | $ | 21,160,265 | |||||||||
-1 | Includes $174 million and $173 million of goodwill at September 30, 2013 and 2012, respectively. | ||||||||||||
-2 | Includes $121 million and $127 million of goodwill at September 30, 2013 and 2012, respectively. | ||||||||||||
Revenues, Income Before Provision for Income Taxes and Excluding Noncontrolling Interests, and Total Assets, Classified by Major Geographic Areas | ' | ||||||||||||
Revenues and income before provision for income taxes and excluding noncontrolling interests, classified by major geographic areas in which they are earned, are as follows: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Revenues: | |||||||||||||
United States | $ | 4,177,712 | $ | 3,500,982 | $ | 2,947,633 | |||||||
Canada | 310,616 | 297,348 | 339,067 | ||||||||||
Europe | 83,744 | 78,221 | 63,665 | ||||||||||
Other | 23,726 | 21,349 | 49,521 | ||||||||||
Total | $ | 4,595,798 | $ | 3,897,900 | $ | 3,399,886 | |||||||
Pre-tax income excluding noncontrolling interests: | |||||||||||||
United States | $ | 543,093 | $ | 450,731 | $ | 416,955 | |||||||
Canada | 28,470 | 29,593 | 42,333 | ||||||||||
Europe | (8,032 | ) | (1,839 | ) | (2,312 | ) | |||||||
Other | 656 | (6,960 | ) | 4,271 | |||||||||
Total | $ | 564,187 | $ | 471,525 | $ | 461,247 | |||||||
Our total assets, classified by major geographic area in which they are held, are presented below: | |||||||||||||
September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Total assets: | |||||||||||||
United States (1) | $ | 21,154,293 | $ | 19,296,197 | |||||||||
Canada(2) | 1,965,648 | 1,788,883 | |||||||||||
Europe(3) | 26,415 | 42,220 | |||||||||||
Other | 39,766 | 32,965 | |||||||||||
Total | $ | 23,186,122 | $ | 21,160,265 | |||||||||
-1 | Includes $262 million and $260 million of goodwill at September 30, 2013 and 2012, respectively. | ||||||||||||
-2 | Includes $33 million of goodwill at September 30, 2013 and 2012. | ||||||||||||
-3 | Includes $7 million of goodwi |
CONDENSED_FINANCIAL_INFORMATIO1
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
Condensed Statement of Financial Condition | ' | |||||||||||
The following table presents the Parent’s statement of financial condition: | ||||||||||||
September 30, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 274,747 | $ | 259,129 | ||||||||
Intercompany receivables from subsidiaries: | ||||||||||||
Bank subsidiary | 44 | — | ||||||||||
Non-bank subsidiaries (1) | 920,827 | 558,051 | ||||||||||
Investments in consolidated subsidiaries: | ||||||||||||
Bank subsidiary | 1,106,742 | 1,038,449 | ||||||||||
Non-bank subsidiaries | 2,393,035 | 2,515,223 | ||||||||||
Property and equipment, net | 10,546 | 14,398 | ||||||||||
Goodwill and identifiable intangible assets, net | 31,954 | (2) | 274,309 | |||||||||
Other assets | 634,446 | 241,716 | ||||||||||
Total assets | $ | 5,372,341 | $ | 4,901,275 | ||||||||
Liabilities and equity: | ||||||||||||
Trade and other | 66,159 | 91,628 | ||||||||||
Intercompany payables to subsidiaries: | ||||||||||||
Bank subsidiary | — | 39 | ||||||||||
Non-bank subsidiaries | 217,497 | 263,717 | ||||||||||
Accrued compensation and benefits | 276,916 | 128,294 | ||||||||||
Corporate debt | 1,148,845 | 1,148,657 | ||||||||||
Total liabilities | 1,709,417 | 1,632,335 | ||||||||||
Equity | 3,662,924 | 3,268,940 | ||||||||||
Total liabilities and equity | $ | 5,372,341 | $ | 4,901,275 | ||||||||
-1 | Of the total receivable from non-bank subsidiaries, $760 million and $446 million at September 30, 2013 and 2012, respectively, is invested in cash and cash equivalents by the subsidiary on behalf of the Parent. | |||||||||||
Condensed Statement of Income | ' | |||||||||||
The following table presents the Parent’s statement of income: | ||||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Revenues: | ||||||||||||
Dividends from non-bank subsidiaries | $ | 822,996 | $ | 433,643 | $ | 164,121 | ||||||
Dividends from bank subsidiary | 100,000 | 75,000 | 100,000 | |||||||||
Interest from subsidiaries | 1,966 | 1,876 | 1,068 | |||||||||
Interest | 2,510 | 322 | 240 | |||||||||
Other, net | 6,017 | 7,391 | 7,762 | |||||||||
Total revenues | 933,489 | 518,232 | 273,191 | |||||||||
Expenses: | ||||||||||||
Compensation and benefits | 43,673 | 38,027 | 28,214 | |||||||||
Communications and information processing | 5,029 | 4,624 | 3,821 | |||||||||
Occupancy and equipment costs | 1,005 | 1,188 | 1,112 | |||||||||
Business development | 16,506 | 12,613 | 11,684 | |||||||||
Interest | 78,244 | 61,122 | 31,309 | |||||||||
Other | 9,608 | 26,716 | 5,894 | |||||||||
Intercompany allocations and charges | (33,115 | ) | (25,360 | ) | (28,757 | ) | ||||||
Total expenses | 120,950 | 118,930 | 53,277 | |||||||||
Income before income tax benefits and equity in undistributed net income of subsidiaries | 812,539 | 399,302 | 219,914 | |||||||||
Income tax benefits | (54,047 | ) | (48,575 | ) | (11,037 | ) | ||||||
Income before equity in undistributed net income of subsidiaries | 866,586 | 447,877 | 230,951 | |||||||||
Equity in undistributed net income of subsidiaries | (499,432 | ) | (152,008 | ) | 47,402 | |||||||
Net income | $ | 367,154 | $ | 295,869 | $ | 278,353 | ||||||
Other comprehensive income, net of tax: | ||||||||||||
Change in unrealized gain on available for sale securities and non-credit portion of other-than-temporary impairment losses | — | 2 | — | |||||||||
Total comprehensive income | $ | 367,154 | $ | 295,871 | $ | 278,353 | ||||||
Condensed Statement of Cash Flows | ' | |||||||||||
Year ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 367,154 | $ | 295,869 | $ | 278,353 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Gain on investments | (11,264 | ) | (6,286 | ) | (6,758 | ) | ||||||
(Gain) loss on company-owned life insurance | (24,907 | ) | (22,848 | ) | 3,208 | |||||||
Equity in undistributed net income of subsidiaries | 499,432 | 152,008 | (47,402 | ) | ||||||||
Other, net | (120,340 | ) | 57,221 | 40,917 | ||||||||
Net change in: | ||||||||||||
Intercompany receivables | (68,635 | ) | (35,456 | ) | (254,735 | ) | ||||||
Other | 33,584 | (266,467 | ) | 12,406 | ||||||||
Intercompany payables | (214,415 | ) | 239,669 | (6,090 | ) | |||||||
Trade and other | 10,017 | 22,034 | 12,093 | |||||||||
Accrued compensation and benefits | 148,622 | 44,156 | 5,144 | |||||||||
Net cash provided by operating activities | 619,248 | 479,900 | 37,136 | |||||||||
Cash flows from investing activities: | ||||||||||||
Investments in and advances to subsidiaries, net | (384,622 | ) | (278,590 | ) | (264,000 | ) | ||||||
Purchases of investments, net | (171,677 | ) | 3,258 | (5,859 | ) | |||||||
Purchase of investments in company-owned life insurance, net | (15,017 | ) | (18,271 | ) | (12,224 | ) | ||||||
Acquisition of subsidiary | — | (1,073,621 | ) | — | ||||||||
Net cash used in investing activities | (571,316 | ) | (1,367,224 | ) | (282,083 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from borrowed funds, net | — | 586,860 | 249,498 | |||||||||
Proceeds from issuance of shares in registered public offering | — | 362,823 | — | |||||||||
Exercise of stock options and employee stock purchases | 55,997 | 33,811 | 47,383 | |||||||||
Purchase of treasury stock | (11,718 | ) | (20,860 | ) | (23,111 | ) | ||||||
Dividends on common stock | (76,593 | ) | (68,782 | ) | (63,090 | ) | ||||||
Net cash (used in) provided by financing activities | (32,314 | ) | 893,852 | 210,680 | ||||||||
Net increase (decrease) in cash and cash equivalents | 15,618 | 6,528 | (34,267 | ) | ||||||||
Cash and cash equivalents at beginning of year | 259,129 | 252,601 | 286,868 | |||||||||
Cash and cash equivalents at end of year | $ | 274,747 | $ | 259,129 | $ | 252,601 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid for interest | $ | 78,439 | $ | 49,155 | $ | 25,800 | ||||||
Cash received for income taxes, net | $ | (100,179 | ) | $ | (74,501 | ) | $ | (15,613 | ) | |||
Supplemental disclosures of noncash investing activity: | ||||||||||||
Investments in subsidiaries | $ | 457,048 | $ | 153,854 | $ | 40,359 | ||||||
INTRODUCTION_AND_BASIS_OF_PRES2
INTRODUCTION AND BASIS OF PRESENTATION (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 24, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2011 | Apr. 01, 2011 | Sep. 30, 2011 | |
ClariVest Asset Management [Member] | ClariVest Asset Management [Member] | ClariVest Asset Management [Member] | Howe Barnes [Member] | Howe Barnes [Member] | Raymond James European Securities [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent ownership of subsidiaries that are consolidated (in hundredths) | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, acquired interest (as a percentage) | ' | ' | ' | 45.00% | 0.00% | 0.00% | ' | ' | ' |
Common stock issued for acquisition (in shares) | ' | ' | ' | ' | ' | ' | 217,088 | ' | ' |
Value of common stock issued for acquisition | ' | ' | ' | ' | ' | ' | ' | $8,300,000 | ' |
Cash contributed in exchange for additional shares of affiliate | $0 | $0 | $6,354,000 | ' | ' | ' | ' | ' | $6,400,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2010 |
rating | |||
independent_pricing_servicer | |||
component | |||
risk_factor | |||
quarter | |||
subsidiary | |||
Fund | |||
investor | |||
institution | |||
nonagency_security | |||
Revenue Recognition [Abstract] | ' | ' | ' |
Total commissions generated by correspondents | $35.50 | $33.50 | $39.30 |
Commissions remitted | 32.6 | 31.2 | 36.1 |
Cash and cash equivalents [Abstract] | ' | ' | ' |
Maturities of cash equivalents (in days) | '90 days | ' | ' |
Available for sale securities [Abstract] | ' | ' | ' |
Number of independent pricings servicers | 2 | ' | ' |
Number of subordinated non-agency securities | 1 | ' | ' |
Auction rate securities, rate setting interval, minimum (in days) | '7 days | ' | ' |
Auction rate securities, rate setting interval, maximum (in days) | '35 days | ' | ' |
Private equity investments [Abstract] | ' | ' | ' |
Private equity investments estimated life, minimum (in years) | '10 years | ' | ' |
Private equity investments estimated life, maximum (in years) | '15 years | ' | ' |
Brokerage client receivables, loans to financial advisors and allowance for doubtful accounts [Abstract] | ' | ' | ' |
Repayment period of loans to financial advisors and certain key revenue producers, minimum (in years) | '5 years | ' | ' |
Repayment period of loans to financial advisors and certain key revenue producers, maximum (in years) | '8 years | ' | ' |
Allowance for loans outstanding to financial advisors | 2.8 | 2.5 | ' |
Loans associated with financial advisors no longer affiliated with the entity, net of allowance | 2.4 | ' | ' |
Bank loans and allowances for losses [Abstract] | ' | ' | ' |
Number of loan portfolio segments | 5 | ' | ' |
Minimum past due for loans considered nonperforming | '90 days | ' | ' |
Minimum past due for loans placed on nonaccrual status (in days) | '90 days | ' | ' |
Period of satisfactory performance for loans to be returned to accrual status (in months) | '6 months | ' | ' |
Number of components comprising the allowance for loan loss | 2 | ' | ' |
Number of aspects of risk factors analyzed | 2 | ' | ' |
Number of ratings used to derive final loan grades and allowance percentages | 2 | ' | ' |
Period of historical data on which ratings are based (in years) | '2 years | ' | ' |
Number of quarters on which estimated loss rates are based | 8 | ' | ' |
Minimum past due for redefault troubled debt restructuring loans | '60 days | ' | ' |
Minimum amount of Shared National Credit (SNC) loan syndications | $20 | ' | ' |
Minimum number of regulated institutions with which SNCs are shared | 3 | ' | ' |
Minimum past due for residential and consumer loans to be reviewed (in days) | '60 days | ' | ' |
Minimum past due for charge-offs to be considered on residential mortgage loans (in days) | '90 days | ' | ' |
Maximum past due for charge-offs taken on residential mortgage loans (in days) | '120 days | ' | ' |
Minimum period for which updated valuation is obtained for loans in pre-foreclosure status (in months) | '9 months | ' | ' |
LIHTC Funds [Abstract] | ' | ' | ' |
Minimum number of investor members or limited partners of LIHTC Funds | 1 | ' | ' |
Number of guaranteed tax credit funds | 1 | ' | ' |
Number of general types of non-guaranteed tax credit funds | 2 | ' | ' |
Entities evaluated but determined not to be VIEs [Abstract] | ' | ' | ' |
Maximum number of days that interests in tax credit limited partnerships are held (in days) | '90 days | ' | ' |
Other real estate limited partnerships and LLCs [Abstract] | ' | ' | ' |
Number of subsidiaries that is either the general partner or limited partner in limited partnerships involved in various real estate activities | 1 | ' | ' |
New market credit funds [Abstract] | ' | ' | ' |
Period of new market tax credit fund | '7 years | ' | ' |
Number of investor members in new market tax credit | 1 | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2013 | |
Minimum [Member] | Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives (in years) | '2 years |
Minimum [Member] | Furniture, fixtures, and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives (in years) | '2 years |
Minimum [Member] | Buildings, building components, building improvements and land improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives (in years) | '10 years |
Maximum [Member] | Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives (in years) | '7 years |
Maximum [Member] | Furniture, fixtures, and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives (in years) | '5 years |
Maximum [Member] | Buildings, building components, building improvements and land improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives (in years) | '31 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Prior Impact of New Accounting Consolidation Guidance (Details) (USD $) | Sep. 30, 2013 |
Fund | |
Cumulative-Effect Adjustment, Deconsolidation of Variable Interest Entity [Member] | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' |
Number of VIEs affected by change in classification | 2 |
Consolidated assets of VIEs affected by change in classification | $3,500,000 |
Consoldiated liabilities of VIEs affected by change in classification | 0 |
After-tax cumulative effect increase (decrease) to retained earnings | 3,300,000 |
After-tax cumulative effect increase (decrease) to noncontrolling interests | 6,800,000 |
Cumulative-Effect Adjustment, Consolidation of Variable Interest Entity [Member] | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' |
Number of VIEs affected by change in classification | 2 |
Consolidated assets of VIEs affected by change in classification | 56,800,000 |
Consoldiated liabilities of VIEs affected by change in classification | 42,100,000 |
Maximum ownership interest held in VIEs affected by change in classification (in hundredths) | 1.00% |
After-tax cumulative effect increase (decrease) to retained earnings | $14,700,000 |
ACQUISITIONS_Schedule_of_Acqui
ACQUISITIONS, Schedule of Acquisitions (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Share data in Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 24, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Apr. 03, 2012 | Sep. 30, 2012 | Apr. 02, 2012 | Apr. 03, 2012 | Apr. 03, 2012 |
ClariVest Asset Management [Member] | ClariVest Asset Management [Member] | ClariVest Asset Management [Member] | ClariVest Asset Management [Member] | Morgan Keegan [Member] | Morgan Keegan [Member] | Morgan Keegan [Member] | Morgan Keegan [Member] | Morgan Keegan [Member] | |||||
Indemnification Agreement [Member] | Employees [Member] | ||||||||||||
Stock Incentive Plan 2012 [Member] | |||||||||||||
Restricted Stock Retention Purposes [Member] | |||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, acquired interest (as a percentage) | ' | ' | ' | ' | ' | 45.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' |
Business acquisition, gross cash payments to acquire businesses | ' | ' | ' | ' | $8,800,000 | ' | ' | ' | $1,200,000,000 | ' | ' | ' | ' |
Period during which actual earnings will be analyzed for possible additional consideration | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' |
Number of days from first anniversary in which additional consideration may be due | ' | ' | ' | ' | '45 days | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of assets managed | ' | ' | ' | ' | ' | 3,100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Business acquisition purchase price premium amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 230,000,000 | ' | ' |
Business acquisition preliminary estimate of tangible book value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 970,000,000 | ' | ' |
Businesss acquisition consideration adjustment receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000,000 | ' | ' |
Business acquisition, net of cash acquired | 6,450,000 | 1,073,621,000 | 0 | ' | ' | ' | ' | ' | ' | -1,100,000,000 | ' | ' | ' |
Business acquisition, cash acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114,000,000 | ' | ' | ' |
Business acquisition, goodwill | 295,486,000 | 300,111,000 | 71,924,000 | 295,486,000 | ' | ' | ' | ' | ' | ' | 230,000,000 | ' | ' |
Business acquisition, portion of net deferred tax asset included in goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,000,000 | ' | ' |
Business acquisition, gross loans to financial advisors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 136,000,000 | ' | ' |
Business acquisition, restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 |
Business acquisition, indemnification agreement, amount of first losses not covered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' |
Business acquisition, indemnification agreement, cap based on purchase price percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' |
Business acquisitions, indemnifiable loss, deductible | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | ' |
Business acquisition, period of time which litigation deductible applies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' |
ACQUISITIONS_Acquisition_Expen
ACQUISITIONS, Acquisition Expenses (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Business Acquisition [Line Items] | ' | ' | ' | |||
Information systems integration and conversion costs | $33,021 | [1] | $14,542 | [1] | $0 | [1] |
Occupancy and equipment costs | 15,999 | [2] | 4,803 | [2] | 0 | [2] |
Severance | 12,734 | [3] | 18,729 | [3] | 0 | [3] |
Temporary services | 4,106 | 1,128 | 0 | |||
Financial advisory fees | 1,176 | 7,040 | 0 | |||
Legal | 476 | 2,267 | 0 | |||
Bridge financing agreement fees | 0 | 5,684 | 0 | |||
Other integration costs | 5,942 | 5,091 | 0 | |||
Total acquisition related expenses | $73,454 | $59,284 | $0 | |||
[1] | Includes equipment costs related to the disposition of information systems equipment, and temporary services incurred specifically related to the information systems conversion. | |||||
[2] | Includes lease costs associated with the abandonment of certain facilities resulting from the Morgan Keegan acquisition. | |||||
[3] | Represents all costs associated with eliminating positions as a result of the Morgan Keegan acquisition, partially offset by the favorable impact arising from the forfeiture of any unvested accrued benefits. |
CASH_AND_CASH_EQUIVALENTS_ASSE2
CASH AND CASH EQUIVALENTS, ASSETS SEGREGATED PURSUANT TO REGULATIONS AND DEPOSITS WITH CLEARING ORGANIZATIONS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | ||
Cash and cash equivalents: | ' | ' | ' | ' | ||
Cash in banks | $2,593,890,000 | $1,973,897,000 | ' | ' | ||
Money market fund investments | 2,726,000 | 6,123,000 | ' | ' | ||
Total cash and cash equivalents | 2,596,616,000 | [1] | 1,980,020,000 | [1] | 2,439,695,000 | 2,943,239,000 |
Cash segregated pursuant to federal regulations and other segregated assets | 4,064,827,000 | [2] | 2,784,199,000 | [2] | ' | ' |
Deposits with clearing organizations | 126,405,000 | [3] | 163,848,000 | [3] | ' | ' |
Total cash and cash equivalents, segregated cash and securities, and deposits with clearing organizations | 6,787,848,000 | 4,928,067,000 | ' | ' | ||
Amount of cash and cash equivalents either on deposit or otherwise invested by subsidiaries on behalf of RJF | $1,020,000,000 | $539,000,000 | ' | ' | ||
[1] | The total amounts presented include cash and cash equivalents of $1.02 billion and $539 million as of September 30, 2013 and 2012, respectively, which are either held directly by RJF or are otherwise invested by one of our subsidiaries on behalf of RJF, and are available without restrictions. | |||||
[2] | Consists of cash maintained in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934. RJ&A (and MK & Co. as of September 30, 2012) as broker-dealers carrying client accounts as of each respective date, are subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of their clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. | |||||
[3] | Consists of deposits of cash and cash equivalents or other short-term securities held by other clearing organizations or exchanges. |
FAIR_VALUE_Recurring_and_Nonre
FAIR VALUE, Recurring and Nonrecurring Fair Value Measurements (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | $579,705,000 | $804,272,000 | ' | ||
Available for sale securities | 698,844,000 | 733,874,000 | 520,665,000 | ||
Derivative instruments associated with offsetting matched book positions | 250,341,000 | 458,265,000 | ' | ||
Other receivables | 407,329,000 | 427,641,000 | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 220,656,000 | 232,436,000 | ' | ||
Transfers of Financial Instruments into (out of) Level 1 and 2 [Abstract] | ' | ' | ' | ||
Transfers of financial instruments from Level 1 to Level 2 | 860,000 | 0 | ' | ||
Transfers of financial instruments from Level 2 to Level 1 | 401,000 | 541,000 | ' | ||
Transfer of impaired loans from Level 3 to Level 2 | ' | 55,000,000 | ' | ||
Adjustments to fair value of nonrecurring fair value measurements [Abstract] | ' | ' | ' | ||
Additional provision for loan losses due to fair value adjustment | 8,700,000 | 20,700,000 | ' | ||
Other losses due to fair value adjustment | 529,000 | 2,000,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 57,568,000 | [1] | 52,405,000 | [2] | ' |
Available for sale securities | 2,076,000 | [1] | 12,000 | [2] | ' |
Private equity investments | 0 | [1] | 0 | [2] | ' |
Other investments | 241,627,000 | [1],[3] | 303,817,000 | [2],[4] | ' |
Derivative instruments associated with offsetting matched book positions | 0 | [1] | 0 | [2] | ' |
Other receivables | 0 | [1] | ' | ' | |
Other assets fair value disclosure | 0 | [1] | ' | ' | |
Total assets at fair value on a recurring basis | 301,271,000 | [1] | 356,234,000 | [2] | ' |
Bank loans, net | 0 | [5] | 0 | [5] | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 204,230,000 | [1] | 209,726,000 | [2] | ' |
Derivatives with offsetting matched book positions fair value liability | 0 | [1] | 0 | [2] | ' |
Trade and other payables | 0 | [1] | 0 | [2] | ' |
Total liabilities at fair value on a recurring basis | 204,230,000 | [1] | 209,726,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 165,000 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 30,000 | [1] | 33,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Government obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 169,816,000 | [1] | 199,501,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 3,068,000 | [1] | 556,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Total debt securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 173,079,000 | [1] | 200,090,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [1] | 0 | [2] | ' |
Trade and other payables | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Equity securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 31,151,000 | [1] | 9,636,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other liabilities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trade and other payables | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 10,000 | [1] | 7,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 833,000 | [1] | 15,916,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Government and agency obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 6,408,000 | [1] | 10,907,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 155,000 | [1] | 1,085,000 | [2] | ' |
Available for sale securities | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Non-agency CMOs & ABS [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Total debt securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 7,406,000 | [1] | 27,915,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Equity securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 48,749,000 | [1] | 23,626,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 1,413,000 | [1] | 864,000 | [2] | ' |
Available for sale securities | 2,076,000 | [1] | 12,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ARS - municipals [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Auction rate securities preferred securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 579,656,000 | [1] | 838,688,000 | [2] | ' |
Available for sale securities | 454,972,000 | [1] | 499,861,000 | [2] | ' |
Private equity investments | 0 | [1] | 0 | [2] | ' |
Other investments | 2,278,000 | [1],[3] | 2,897,000 | [2],[4] | ' |
Derivative instruments associated with offsetting matched book positions | 250,341,000 | [1] | 458,265,000 | [2] | ' |
Other receivables | 0 | [1] | ' | ' | |
Other assets fair value disclosure | 0 | [1] | ' | ' | |
Total assets at fair value on a recurring basis | 1,287,247,000 | [1] | 1,799,711,000 | [2] | ' |
Bank loans, net | 83,012,000 | [5] | 80,227,000 | [5] | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 85,705,000 | [1] | 147,689,000 | [2] | ' |
Derivatives with offsetting matched book positions fair value liability | 250,341,000 | [1] | 458,265,000 | [2] | ' |
Trade and other payables | 714,000 | [1] | 1,370,000 | [2] | ' |
Total liabilities at fair value on a recurring basis | 336,760,000 | [1] | 607,324,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 1,612,000 | [1] | 212,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 9,081,000 | [1] | 12,355,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Government obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [1] | 587,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [1] | 121,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Total debt securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 10,693,000 | [1] | 13,275,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 74,920,000 | [1] | 128,081,000 | [2] | ' |
Trade and other payables | 714,000 | [1] | 1,370,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Equity securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 92,000 | [1] | 64,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Other securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [1] | 6,269,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Other liabilities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trade and other payables | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 202,816,000 | [1] | 346,030,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 59,573,000 | [1] | 70,815,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Government and agency obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 106,988,000 | [1] | 156,492,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 92,994,000 | [1] | 104,084,000 | [2] | ' |
Available for sale securities | 326,029,000 | [1] | 352,303,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Non-agency CMOs & ABS [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 16,957,000 | [1] | 1,986,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Total debt securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 479,328,000 | [1] | 679,407,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 89,633,000 | [1] | 144,259,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Equity securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 4,231,000 | [1] | 2,891,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 128,943,000 | [1] | 147,558,000 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Other securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 6,464,000 | [1] | 12,131,000 | [2] | ' |
Available for sale securities | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | ARS - municipals [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Auction rate securities preferred securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 0 | [1] | 0 | [2] | ' |
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 4,005,000 | 6,438,000 | ' | ||
Available for sale securities | 241,796,000 | 234,001,000 | ' | ||
Private equity investments | 216,391,000 | [6] | 336,927,000 | [7] | ' |
Other investments | 4,607,000 | [3] | 4,092,000 | [4] | ' |
Derivative instruments associated with offsetting matched book positions | 0 | 0 | ' | ||
Other receivables | 2,778,000 | [8] | ' | ' | |
Other assets fair value disclosure | 15,000 | ' | ' | ||
Total assets at fair value on a recurring basis | 469,592,000 | 581,458,000 | ' | ||
Bank loans, net | 8,614,755,000 | [5] | 7,803,328,000 | [5] | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Derivatives with offsetting matched book positions fair value liability | 0 | 0 | ' | ||
Trade and other payables | 60,000 | 98,000 | ' | ||
Total liabilities at fair value on a recurring basis | 60,000 | 98,000 | ' | ||
Auction rate securities [Abstract] | ' | ' | ' | ||
Jefferson County, Alabama Limited Obligation School Warrants ARS | 54,000,000 | 48,000,000 | ' | ||
Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS | 25,000,000 | 22,000,000 | ' | ||
Private Equity Investments [Abstract] | ' | ' | ' | ||
Private equity investments | ' | 224,000,000 | ' | ||
Weighted-average ownership percentage (in hundredths) | 41.00% | 28.00% | ' | ||
Portion of significant private equity investments included in Noncontrolling Interests | 63,000,000 | 161,000,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Government obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Total debt securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Trade and other payables | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Equity securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Other securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Other liabilities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trade and other payables | 60,000 | 98,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | 553,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Government and agency obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | 0 | ' | ||
Available for sale securities | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Non-agency CMOs & ABS [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 14,000 | 29,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Total debt securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 14,000 | 582,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | 0 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Equity securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 35,000 | 6,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 78,000 | 249,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Other securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 3,956,000 | 5,850,000 | ' | ||
Available for sale securities | 0 | [9] | 0 | ' | |
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | ARS - municipals [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 130,934,000 | [10] | 123,559,000 | [11] | ' |
Measured at fair value on a recurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Auction rate securities preferred securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 110,784,000 | 110,193,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | -61,524,000 | [9] | -93,259,000 | [9] | ' |
Available for sale securities | 0 | [9] | 0 | [9] | ' |
Private equity investments | 0 | [9] | 0 | [9] | ' |
Other investments | 0 | [3],[9] | 0 | [4],[9] | ' |
Derivative instruments associated with offsetting matched book positions | 0 | [9] | 0 | [9] | ' |
Other receivables | 0 | [9] | ' | ' | |
Other assets fair value disclosure | 0 | [9] | ' | ' | |
Total assets at fair value on a recurring basis | -61,524,000 | [9] | -93,259,000 | [9] | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | -69,279,000 | [9] | -124,979,000 | [9] | ' |
Derivatives with offsetting matched book positions fair value liability | 0 | [9] | 0 | [9] | ' |
Trade and other payables | 0 | [9] | 0 | [9] | ' |
Total liabilities at fair value on a recurring basis | -69,279,000 | [9] | -124,979,000 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Government obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Total debt securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | -69,279,000 | [9] | -124,979,000 | [9] | ' |
Trade and other payables | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Equity securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Other securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Other liabilities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trade and other payables | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Government and agency obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [9] | 0 | [9] | ' |
Available for sale securities | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Non-agency CMOs & ABS [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Total debt securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | -61,524,000 | [9] | -93,259,000 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Equity securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Other securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 0 | [9] | 0 | [9] | ' |
Available for sale securities | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | ARS - municipals [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Netting adjustments [Member] | Auction rate securities preferred securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 0 | [9] | 0 | [9] | ' |
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 579,705,000 | 804,272,000 | ' | ||
Available for sale securities | 698,844,000 | 733,874,000 | ' | ||
Private equity investments | 216,391,000 | 336,927,000 | ' | ||
Other investments | 248,512,000 | [3] | 310,806,000 | [4] | ' |
Derivative instruments associated with offsetting matched book positions | 250,341,000 | 458,265,000 | ' | ||
Other receivables | 2,778,000 | ' | ' | ||
Other assets fair value disclosure | 15,000 | ' | ' | ||
Total assets at fair value on a recurring basis | 1,996,586,000 | 2,644,144,000 | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 220,656,000 | 232,436,000 | ' | ||
Derivatives with offsetting matched book positions fair value liability | 250,341,000 | 458,265,000 | ' | ||
Trade and other payables | 774,000 | 1,468,000 | ' | ||
Total liabilities at fair value on a recurring basis | 471,771,000 | 692,169,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 1,777,000 | 212,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 9,111,000 | 12,388,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Government obligations [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 169,816,000 | 200,088,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 3,068,000 | 556,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 121,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Total debt securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 183,772,000 | 213,365,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 5,641,000 | 3,102,000 | ' | ||
Trade and other payables | 714,000 | 1,370,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Equity securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 31,243,000 | 9,700,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Other securities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 6,269,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Other liabilities [Member] | ' | ' | ' | ||
Liabilities, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trade and other payables | 60,000 | 98,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 202,826,000 | 346,590,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Corporate obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 60,406,000 | 86,731,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Government and agency obligations [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 113,396,000 | 167,399,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 93,149,000 | 105,169,000 | ' | ||
Available for sale securities | 326,029,000 | 352,303,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Non-agency CMOs & ABS [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 16,971,000 | 2,015,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Total debt securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 486,748,000 | 707,904,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Derivative contracts [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 28,109,000 | 51,000,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Equity securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 53,015,000 | 26,523,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Non-agency CMOs [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 129,021,000 | 147,807,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Other securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Trading instruments | 11,833,000 | 18,845,000 | ' | ||
Available for sale securities | 2,076,000 | 12,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | ARS - municipals [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 130,934,000 | 123,559,000 | ' | ||
Measured at fair value on a recurring basis [Member] | Total estimated fair value [Member] | Auction rate securities preferred securities [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Available for sale securities | 110,784,000 | 110,193,000 | ' | ||
Measured at fair value on a recurring basis [Member] | MK&Co [Member] | ' | ' | ' | ||
Adjustments to fair value of nonrecurring fair value measurements [Abstract] | ' | ' | ' | ||
Other investments with obligations to perform under deferred compensation plan | 176,000,000 | [1],[3] | 185,000,000 | [1],[3] | ' |
Measured at fair value on a nonrecurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 0 | [1],[12] | 0 | [2] | ' |
OREO | 0 | [1],[12],[13] | 0 | [13],[2] | ' |
Total assets at fair value on a nonrecurring basis | 0 | [1],[12] | 0 | [2] | ' |
Measured at fair value on a nonrecurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Impaired loans [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 0 | [1],[12] | 0 | [14],[2] | ' |
Measured at fair value on a nonrecurring basis [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Loans held for sale [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 0 | [1],[12],[15] | 0 | [15],[2] | ' |
Measured at fair value on a nonrecurring basis [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 61,306,000 | [1],[12] | 128,502,000 | [2] | ' |
OREO | 209,000 | [1],[12],[13] | 6,216,000 | [13],[2] | ' |
Total assets at fair value on a nonrecurring basis | 61,515,000 | [1],[12] | 134,718,000 | [2] | ' |
Measured at fair value on a nonrecurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Impaired loans [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 33,187,000 | [1],[12] | 47,409,000 | [14],[2] | ' |
Measured at fair value on a nonrecurring basis [Member] | Significant other observable inputs (Level 2) [Member] | Loans held for sale [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 28,119,000 | [1],[12],[15] | 81,093,000 | [15],[2] | ' |
Measured at fair value on a nonrecurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 59,868,000 | [12] | 46,383,000 | ' | |
OREO | 0 | [12],[13] | 0 | [13] | ' |
Total assets at fair value on a nonrecurring basis | 59,868,000 | [12] | 46,383,000 | ' | |
Measured at fair value on a nonrecurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Impaired loans [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 59,868,000 | [12] | 46,383,000 | [14] | ' |
Measured at fair value on a nonrecurring basis [Member] | Significant unobservable inputs (Level 3) [Member] | Loans held for sale [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 0 | [12],[15] | 0 | [15] | ' |
Measured at fair value on a nonrecurring basis [Member] | Netting adjustments [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 0 | [12],[9] | 0 | [9] | ' |
OREO | 0 | [12],[13],[9] | 0 | [13],[9] | ' |
Total assets at fair value on a nonrecurring basis | 0 | [12],[9] | 0 | [9] | ' |
Measured at fair value on a nonrecurring basis [Member] | Netting adjustments [Member] | Impaired loans [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 0 | [12],[9] | 0 | [14],[9] | ' |
Measured at fair value on a nonrecurring basis [Member] | Netting adjustments [Member] | Loans held for sale [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 0 | [12],[15],[9] | 0 | [15],[9] | ' |
Measured at fair value on a nonrecurring basis [Member] | Total estimated fair value [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 121,174,000 | [12] | 174,885,000 | ' | |
OREO | 209,000 | [12],[13] | 6,216,000 | [13] | ' |
Total assets at fair value on a nonrecurring basis | 121,383,000 | [12] | 181,101,000 | ' | |
Measured at fair value on a nonrecurring basis [Member] | Total estimated fair value [Member] | Impaired loans [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | 93,055,000 | [12] | 93,792,000 | [14] | ' |
Measured at fair value on a nonrecurring basis [Member] | Total estimated fair value [Member] | Loans held for sale [Member] | ' | ' | ' | ||
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ||
Bank loans, net | $28,119,000 | [12],[15] | $81,093,000 | [15] | ' |
[1] | We had $860 thousand in transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2013. These transfers were a result of a decrease in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had $401 thousand in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2013. These transfers were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||
[2] | We had no transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2012. We had $541 thousand in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2012. These transfers were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | ||||
[3] | Other investments include $176 million of financial instruments that are related to obligations to perform under certain of MK & Co.’s historic deferred compensation plans (see Note 2 and Note 23 for further information regarding these plans). | ||||
[4] | Other investments include $185 million of financial instruments that are related to obligations to perform under certain of MK & Co.’s historic deferred compensation plans (see Note 2 and Note 23 for further information regarding these plans). | ||||
[5] | Excludes all impaired loans and loans held for sale which have been recorded at fair value in the Consolidated Statement of Financial Condition at September 30, 2013 and 2012, respectively. | ||||
[6] | Of the total private equity investments, the weighted-average portion we own is approximately 41%. Effectively, the economics associated with the portions of these investments we do not own become a component of noncontrolling interests on our Consolidated Statements of Financial Condition, and amounted to approximately $63 million of the total as of September 30, 2013. | ||||
[7] | Includes $224 million in private equity investments of which the weighted-average portion we own is approximately 28%. Effectively, the economics associated with the portions of these investments we do not own become a component of noncontrolling interests on our Consolidated Statements of Financial Condition, and amounted to approximately $161 million of that total as of September 30, 2012. | ||||
[8] | Primarily comprised of forward commitments to purchase GNMA (as hereinafter defined) MBS arising from our fixed income public finance operations (see Note 20 for additional information regarding these commitments). | ||||
[9] | Where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. | ||||
[10] | Includes $54 million of Jefferson County, Alabama Limited Obligation School Warrants ARS and $25 million of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS. | ||||
[11] | Includes $48 million of Jefferson County, Alabama Limited Obligation School Warrants ARS and $22 million of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS. | ||||
[12] | Goodwill fair value measurements are classified within Level 3 of the fair value hierarchy, which are generally determined using unobservable inputs. See Note 13 for additional information regarding the annual impairment analysis and our methods of estimating the fair value of reporting units that have an allocation of goodwill, including the key assumptions. | ||||
[13] | Represents the fair value of foreclosed properties which were measured at a fair value subsequent to their initial classification as OREO. The recorded value in the Consolidated Statements of Financial Condition is net of the estimated selling costs. | ||||
[14] | During the year ended September 30, 2012, we initially transferred $55 million of impaired loans from Level 3 to Level 2. The transfer was a result of the increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. Our analysis indicates that comparative sales data is a reasonable estimate of fair value, therefore, more consideration was given to this observable input. | ||||
[15] | Includes individual loans classified as held for sale, which were recorded at a fair value lower than cost. |
FAIR_VALUE_Level_3_Financial_A
FAIR VALUE, Level 3 Financial Assets and Liabilities, Roll Forward (Details) (USD $) | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||||
Percentage of instruments measured at fair value on a recurring basis [Abstract] | ' | ' | ' | |||
Instruments measured at fair value, percentage of assets (in hundredths) | 8.60% | 12.50% | ' | |||
Instruments measured at fair value, percentage of liabilities (in hundredths) | 2.50% | 4.00% | ' | |||
Instruments measured at fair value, Level 3, percentage of assets (in hundredths) | 24.00% | 22.00% | ' | |||
Percentage change of level 3 financial instruments from prior year period | 2.00% | ' | ' | |||
Payables - trade and other [Member] | Other liabilities fair value [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, liabilities [Roll Forward] | ' | ' | ' | |||
Fair value, financial liabilities at beginning of period | ($98,000) | ($40,000) | ($46,000) | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings, financial liabilities | 38,000 | -58,000 | 6,000 | |||
Included in other comprehensive income, financial liabilities | 0 | 0 | 0 | |||
Purchases and contributions, financial liabilities | 0 | 0 | 0 | |||
Sales, financial liabilities | 0 | 0 | 0 | |||
Redemptions by issuer, financial liabilities | 0 | 0 | 0 | |||
Distributions, financial liabilities | 0 | 0 | 0 | |||
Transfers: | ' | ' | ' | |||
Into Level 3, financial liabilities | 0 | [1] | 0 | 0 | [2] | |
Out of Level 3, financial liabilities | 0 | [1] | 0 | [3] | 0 | [2] |
Fair value, financial liabilities at end of period | -60,000 | -98,000 | -40,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 0 | 0 | 0 | |||
Trading instruments [Member] | Municipal & provincial obligations [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 553,000 | 375,000 | 6,275,000 | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | 0 | 89,000 | -397,000 | |||
Included in other comprehensive income | 0 | 0 | 0 | |||
Purchases and contributions | 0 | 553,000 | 1,050,000 | |||
Sales | -553,000 | -320,000 | -305,000 | |||
Redemptions by issuer | 0 | 0 | 0 | |||
Distributions | 0 | 0 | 0 | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 0 | [1] | 0 | 0 | [2] | |
Out of Level 3 | 0 | [1] | -144,000 | [3] | -6,248,000 | [2] |
Fair value at end of period | 0 | 553,000 | 375,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 0 | 0 | 203,000 | |||
Trading instruments [Member] | Non-agency CMOs & ABS [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 29,000 | 50,000 | 3,930,000 | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | -4,000 | -3,000 | 1,318,000 | |||
Included in other comprehensive income | 0 | 0 | 0 | |||
Purchases and contributions | 0 | 0 | 12,000 | |||
Sales | 0 | 0 | -5,210,000 | |||
Redemptions by issuer | 0 | 0 | 0 | |||
Distributions | -11,000 | -18,000 | 0 | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 0 | [1] | 0 | 0 | [2] | |
Out of Level 3 | 0 | [1] | 0 | [3] | 0 | [2] |
Fair value at end of period | 14,000 | 29,000 | 50,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 38,000 | 9,000 | -99,000 | |||
Trading instruments [Member] | Equity securities [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 6,000 | 15,000 | 3,025,000 | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | 1,000 | 11,000 | -176,000 | |||
Included in other comprehensive income | 0 | 0 | 0 | |||
Purchases and contributions | 63,000 | 18,000 | 688,000 | |||
Sales | -37,000 | -16,000 | -1,225,000 | |||
Redemptions by issuer | 0 | 0 | -1,125,000 | |||
Distributions | 0 | 0 | 0 | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 2,000 | [1] | 156,000 | 0 | [2] | |
Out of Level 3 | 0 | [1] | -178,000 | [3] | -1,172,000 | [2] |
Fair value at end of period | 35,000 | 6,000 | 15,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | -1,000 | -5,000 | -23,000 | |||
Trading instruments [Member] | Other securities [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 5,850,000 | 0 | ' | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | -140,000 | -1,034,000 | ' | |||
Included in other comprehensive income | 0 | 0 | ' | |||
Purchases and contributions | 9,885,000 | 16,268,000 | ' | |||
Sales | -9,234,000 | -14,251,000 | ' | |||
Redemptions by issuer | 0 | 0 | ' | |||
Distributions | -2,390,000 | -1,710,000 | ' | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 0 | [1] | 6,577,000 | [4] | ' | |
Out of Level 3 | -15,000 | [1] | 0 | [3] | ' | |
Fair value at end of period | 3,956,000 | 5,850,000 | ' | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | -140,000 | -1,034,000 | ' | |||
Available for sale securities [Member] | Non-agency CMOs [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 249,000 | 851,000 | 1,011,000 | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | -396,000 | -691,000 | 121,000 | |||
Included in other comprehensive income | 281,000 | 130,000 | 155,000 | |||
Purchases and contributions | 0 | 0 | 0 | |||
Sales | 0 | 0 | -436,000 | |||
Redemptions by issuer | 0 | 0 | 0 | |||
Distributions | -56,000 | -41,000 | 0 | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 0 | [1] | 0 | 0 | [2] | |
Out of Level 3 | 0 | [1] | 0 | [3] | 0 | [2] |
Fair value at end of period | 78,000 | 249,000 | 851,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | -396,000 | -691,000 | -81,000 | |||
Available for sale securities [Member] | ARS - municipals [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 123,559,000 | 79,524,000 | 0 | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | 439,000 | -1,487,000 | 0 | |||
Included in other comprehensive income | 13,212,000 | -7,651,000 | 0 | |||
Purchases and contributions | 0 | 56,344,000 | 73,213,000 | |||
Sales | -4,971,000 | 0 | 0 | |||
Redemptions by issuer | -1,305,000 | -3,214,000 | 0 | |||
Distributions | 0 | 0 | 0 | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 0 | [1] | 43,000 | 6,311,000 | [2] | |
Out of Level 3 | 0 | [1] | 0 | [3] | 0 | [2] |
Fair value at end of period | 130,934,000 | 123,559,000 | 79,524,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 13,212,000 | -9,060,000 | 0 | |||
Available for sale securities [Member] | ARS - Preferred securities [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 110,193,000 | 116,524,000 | 0 | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | 1,164,000 | -75,000 | 0 | |||
Included in other comprehensive income | 7,504,000 | -1,528,000 | 0 | |||
Purchases and contributions | 25,000 | 66,915,000 | 131,255,000 | |||
Sales | -90,000 | 0 | 0 | |||
Redemptions by issuer | -8,012,000 | -71,600,000 | -15,925,000 | |||
Distributions | 0 | 0 | 0 | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 0 | [1] | 0 | 1,194,000 | [2] | |
Out of Level 3 | 0 | [1] | -43,000 | [3] | 0 | [2] |
Fair value at end of period | 110,784,000 | 110,193,000 | 116,524,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 7,504,000 | -1,528,000 | 0 | |||
Private equity, other investments and other assets [Member] | Private equity investments [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 336,927,000 | 168,785,000 | 161,230,000 | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | 70,688,000 | [5] | 36,098,000 | [6] | 10,683,000 | [7] |
Included in other comprehensive income | 0 | 0 | 0 | |||
Purchases and contributions | 20,416,000 | 162,795,000 | [8] | 14,027,000 | ||
Sales | -165,878,000 | [9] | 0 | 0 | ||
Redemptions by issuer | 0 | 0 | 0 | |||
Distributions | -45,762,000 | -30,751,000 | -16,694,000 | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 0 | [1] | 0 | 0 | [2] | |
Out of Level 3 | 0 | [1] | 0 | [3] | -461,000 | [2] |
Fair value at end of period | 216,391,000 | 336,927,000 | 168,785,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 5,354,000 | 36,098,000 | [6] | -8,000 | ||
Valuation adjustments of certain private equity investments [Abstract] | ' | ' | ' | |||
Share of the net valuation adjustments gain | 28,400,000 | 15,200,000 | 6,000,000 | |||
Noncontrolling interests' share of the net valuation adjustments gain | 42,300,000 | 20,900,000 | 4,700,000 | |||
Private equity, other investments and other assets [Member] | Other investments [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 4,092,000 | 2,087,000 | 45,000 | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | 1,390,000 | 296,000 | -160,000 | |||
Included in other comprehensive income | 0 | 0 | 0 | |||
Purchases and contributions | 0 | 2,276,000 | 1,932,000 | |||
Sales | -691,000 | 0 | -191,000 | |||
Redemptions by issuer | 0 | 0 | 0 | |||
Distributions | -315,000 | -567,000 | 0 | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 131,000 | [1] | 0 | 461,000 | [2] | |
Out of Level 3 | 0 | [1] | 0 | [3] | 0 | [2] |
Fair value at end of period | 4,607,000 | 4,092,000 | 2,087,000 | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 1,511,000 | 172,000 | -143,000 | |||
Private equity, other investments and other assets [Member] | Other receivables [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 0 | ' | ' | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | 2,778,000 | ' | ' | |||
Included in other comprehensive income | 0 | ' | ' | |||
Purchases and contributions | 0 | ' | ' | |||
Sales | 0 | ' | ' | |||
Redemptions by issuer | 0 | ' | ' | |||
Distributions | 0 | ' | ' | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 0 | [1] | ' | ' | ||
Out of Level 3 | 0 | [1] | ' | ' | ||
Fair value at end of period | 2,778,000 | ' | ' | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 2,778,000 | ' | ' | |||
Private equity, other investments and other assets [Member] | Other assets [Member] | ' | ' | ' | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ' | ' | ' | |||
Fair value at beginning of period | 0 | ' | ' | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Included in earnings | 0 | ' | ' | |||
Included in other comprehensive income | 0 | ' | ' | |||
Purchases and contributions | 0 | ' | ' | |||
Sales | 0 | ' | ' | |||
Redemptions by issuer | 0 | ' | ' | |||
Distributions | 0 | ' | ' | |||
Transfers: | ' | ' | ' | |||
Into Level 3 | 15,000 | [1] | ' | ' | ||
Out of Level 3 | 0 | [1] | ' | ' | ||
Fair value at end of period | 15,000 | ' | ' | |||
Change in unrealized gains (losses) for the period included in earnings (or changes in net assets/liabilities) for assets/liabilities held at the end of the reporting period [Abstract] | ' | ' | ' | |||
Change in unrealized gains (losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 0 | ' | ' | |||
Morgan Keegan [Member] | ' | ' | ' | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Purchases and contributions | ' | 97,000,000 | ' | |||
Morgan Keegan [Member] | Private equity investments [Member] | ' | ' | ' | |||
Realized/unrealized gains (losses): | ' | ' | ' | |||
Purchases and contributions | ' | $46,000,000 | ' | |||
[1] | Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | |||||
[2] | During the fiscal year 2011, ARS positions we held in trading instruments which were repurchased from clients in individual settlements prior to the June, 2011 ARS settlement were transferred into available for sale securities. In addition, certain investments held by our Canadian subsidiary were reclassified from private equity investments to other investments. In all periods presented, these positions were considered Level 3 assets in the fair value hierarchy. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | |||||
[3] | The transfers out of Level 3 were a result of an increase in availability and reliability of the observable inputs utilized in the respective instruments’ fair value. Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. | |||||
[4] | During the year ended September 30, 2012, we transferred certain non-agency CMOs and ABS securities which were previously included in Level 2, into Level 3, due to a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. | |||||
[5] | Results from valuation adjustments of certain private equity investments and the April 29, 2013 sale of our indirect investment in Albion Medical Holdings, Inc. (“Albionâ€). Since we only own a portion of these investments, our share of the net valuation adjustments and Albion sale resulted in a gain of $28.4 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net gain is approximately $42.3 million. | |||||
[6] | Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of $15.2 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $20.9 million. | |||||
[7] | Primarily results from valuation adjustments of certain private equity investments. Since we only own a portion of these investments, our share of the net valuation adjustments resulted in a gain of $6 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $4.7 million. | |||||
[8] | Includes private equity investments of approximately $46 million arising from the Morgan Keegan acquisition and $97 million of other investments arising from the consolidation of certain of Morgan Keegan’s private equity funds (see Note 3 for further information regarding the Morgan Keegan acquisition and the consolidation of some of the private equity funds they sponsor). | |||||
[9] | Results primarily from the April 29, 2013 sale of our indirect investment in Albion. The amount is presented gross, and therefore includes amounts pertaining to interests held by others. |
FAIR_VALUE_Gains_and_Losses_Re
FAIR VALUE, Gains and Losses (Realized and Unrealized) Included in Revenues (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Net trading profits [Member] | ' | ' | ' |
Gains and Losses (Realized and Unrealized) Included in Earnings [Line Items] | ' | ' | ' |
Total (losses) gains for the period included in revenues | ($143) | ($937) | $745 |
Change in unrealized (losses) gains for assets held at the end of the reporting period | -103 | -1,030 | 81 |
Other revenues [Member] | ' | ' | ' |
Gains and Losses (Realized and Unrealized) Included in Earnings [Line Items] | ' | ' | ' |
Total (losses) gains for the period included in revenues | 76,101 | 34,083 | 10,650 |
Change in unrealized (losses) gains for assets held at the end of the reporting period | $29,963 | $24,991 | ($232) |
FAIR_VALUE_Significant_Assumpt
FAIR VALUE, Significant Assumptions Used in Valuation of Level 3 Financial Instruments (Details) (Significant unobservable inputs (Level 3) [Member], USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | ||||||||||||||||||
In Thousands, unless otherwise specified | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a recurring basis [Member] | Measured at fair value on a nonrecurring basis [Member] | Measured at fair value on a nonrecurring basis [Member] | Measured at fair value on a nonrecurring basis [Member] | Measured at fair value on a nonrecurring basis [Member] | ||||||||||||||||||
ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - municipals [Member] | ARS - Preferred securities [Member] | ARS - Preferred securities [Member] | ARS - Preferred securities [Member] | ARS - Preferred securities [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Private Equity Investments [Member] | Impaired Loans Residential [Member] | Impaired Loans Residential [Member] | Impaired Loans Residential [Member] | Impaired Loans Residential [Member] | Impaired Loans, Corporate [Member] | |||||||||||||||||||||||
Probablity Weighted Internal Scenario Models [Member] | Probablity Weighted Internal Scenario 1 [Member] | Probablity Weighted Internal Scenario 1 [Member] | Probablity Weighted Internal Scenario 1 [Member] | Probablity Weighted Internal Scenario 2 [Member] | Probablity Weighted Internal Scenario 2 [Member] | Probablity Weighted Internal Scenario 2 [Member] | Recent Trades [Member] | Recent Trades [Member] | Recent Trades [Member] | Recent Trades [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Probablity Weighted Internal Scenario 1 [Member] | Probablity Weighted Internal Scenario 1 [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Market Comparable Companies [Member] | Market Comparable Companies [Member] | Market Comparable Companies [Member] | Transaction Price or Other Investment-specific Events [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Appraisal or Discounted Cash Flow [Member] | |||||||||||||||||||||||
Maximum [Member] | Minimum [Member] | Weighted Average Amount [Member] | Maximum [Member] | Minimum [Member] | Weighted Average Amount [Member] | Maximum [Member] | Minimum [Member] | Weighted Average Amount [Member] | Maximum [Member] | Minimum [Member] | Weighted Average Amount [Member] | Maximum [Member] | Minimum [Member] | Weighted Average Amount [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Weighted Average Amount [Member] | Maximum [Member] | Minimum [Member] | Weighted Average Amount [Member] | Maximum [Member] | Minimum [Member] | Weighted Average Amount [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||
Total assets at fair value on a recurring basis | $469,592 | $581,458 | $54,365 | ' | ' | ' | ' | ' | ' | $24,716 | ' | ' | ' | $51,853 | ' | ' | ' | $110,784 | ' | ' | ' | ' | ' | $37,849 | ' | ' | ' | ' | ' | ' | $178,542 | [1] | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||
Total assets at fair value on a nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $59,868 | [2] | $46,383 | $34,268 | $25,600 | [3] | ||||||||||||||||
Unobservable input, observed trades of in-portfolio securities as well as observed trades of other comparable securities | ' | ' | ' | 84.00% | 81.90% | 82.75% | ' | ' | ' | ' | 74.00% | 63.80% | 73.78% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||
Unobservable input, average discount rate | ' | ' | ' | ' | ' | ' | 9.14% | [4] | 8.02% | [4] | 8.58% | [4] | ' | ' | ' | ' | ' | 6.33% | [4] | 3.34% | [4] | 4.75% | [4] | ' | 5.23% | [4] | 3.35% | [4] | 4.42% | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Unobservable input, average interest rates aplicable to future interest income on the securities | ' | ' | ' | ' | ' | ' | 7.64% | [5] | 1.88% | [5] | 4.76% | [5] | ' | ' | ' | ' | ' | 7.62% | [5] | 0.88% | [5] | 3.32% | [5] | ' | 2.73% | [5] | 1.43% | [5] | 1.98% | [5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Unobservable input, prepayment year | ' | ' | ' | ' | ' | ' | 31-Dec-23 | [6] | 31-Dec-16 | [6] | 31-Dec-20 | [6] | ' | ' | ' | ' | ' | 31-Dec-23 | [6] | 31-Dec-16 | [6] | 31-Dec-19 | [6] | ' | 31-Dec-18 | [6] | 31-Dec-13 | [6] | 31-Dec-17 | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Unobservable input, weighting assigned to outcome of scenario 1/scenario 2 | ' | ' | ' | 10.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.00% | 86.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||
Absolute value of comparability adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | [7] | 5.00% | [7] | 5.00% | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 14.00% | 14.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||
Fair Value Inputs, Terminal Growth Rate of Cash Flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||
Fair Value Inputs, Terminal year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-15 | 31-Dec-14 | 31-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||
EBITDA multiple | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | [8] | 4.75 | [8] | 5.39 | [8] | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Percentage of projected EBITDA growth (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.30% | [9] | 16.30% | [9] | 16.30% | [9] | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Prepayment rate (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 years | '0 years | '7 years 9 months 18 days | ' | ' | ' | ' | ||||||||||||||||||
[1] | Certain direct private equity investments are valued initially at the transaction price until either our annual review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, where any of which indicate that a change in the carrying values of these investments is appropriate. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Goodwill fair value measurements are classified within Level 3 of the fair value hierarchy, which are generally determined using unobservable inputs. See Note 13 for additional information regarding the annual impairment analysis and our methods of estimating the fair value of reporting units that have an allocation of goodwill, including the key assumptions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | The valuation techniques used for the impaired corporate loan portfolio as of September 30, 2013 were appraisals less selling costs for the collateral dependent loans, and either discounted cash flows or distressed enterprise value for the remaining impaired loans that are not collateral dependent. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Represents discount rates used when we have determined that market participants would take these discounts into account when pricing the investments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Future interest rates are projected based upon a forward interest rate curve, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Assumed year of at least a partial redemption of the outstanding security by the issuer. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | Management estimates that market participants apply this range of either discount or premium, as applicable, to the limited observable trade data in order to assess the value of the securities within this portfolio segment. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | Represents amounts used when we have determined that market participants would use such multiples when pricing the investments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[9] | Represents the projected growth in earnings before interest, taxes, depreciation and amortization (“EBITDAâ€) utilized in the valuation as compared to the prior periods reported EBITDA. |
FAIR_VALUE_Carrying_Amounts_an
FAIR VALUE, Carrying Amounts and Estimated Fair Value of Financial Instruments Not Carried at Fair Value (Details) (Measured at fair value on a recurring basis [Member], USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Total estimated fair value [Member] | ' | ' | ||
Financial assets: | ' | ' | ||
Bank loans, net | $8,697,767 | [1] | $7,883,555 | [1] |
Financial liabilities: | ' | ' | ||
Bank deposits | 9,302,192 | 8,610,800 | ||
Other borrowings | 84,076 | ' | ||
Corporate debt | 1,304,148 | 1,347,050 | ||
Carrying amount [Member] | ' | ' | ||
Financial assets: | ' | ' | ||
Bank loans, net | 8,700,027 | [1] | 7,816,627 | [1] |
Financial liabilities: | ' | ' | ||
Bank deposits | 9,295,371 | 8,599,713 | ||
Other borrowings | 84,076 | ' | ||
Corporate debt | 1,194,508 | 1,329,093 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | ' | ' | ||
Financial assets: | ' | ' | ||
Bank loans, net | 0 | [1] | 0 | [1] |
Financial liabilities: | ' | ' | ||
Bank deposits | 0 | 0 | ||
Other borrowings | 0 | ' | ||
Corporate debt | 352,520 | 384,440 | ||
Significant other observable inputs (Level 2) [Member] | ' | ' | ||
Financial assets: | ' | ' | ||
Bank loans, net | 83,012 | [1] | 80,227 | [1] |
Financial liabilities: | ' | ' | ||
Bank deposits | 8,981,996 | 8,280,834 | ||
Other borrowings | 84,076 | ' | ||
Corporate debt | 951,628 | 962,610 | ||
Significant unobservable inputs (Level 3) [Member] | ' | ' | ||
Financial assets: | ' | ' | ||
Bank loans, net | 8,614,755 | [1] | 7,803,328 | [1] |
Financial liabilities: | ' | ' | ||
Bank deposits | 320,196 | 329,966 | ||
Other borrowings | 0 | ' | ||
Corporate debt | $0 | $0 | ||
[1] | Excludes all impaired loans and loans held for sale which have been recorded at fair value in the Consolidated Statement of Financial Condition at September 30, 2013 and 2012, respectively. |
TRADING_INSTRUMENTS_AND_TRADIN2
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BY NOT YET PURCHASED (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | $579,705 | $804,272 | ||
Trading instruments sold but not yet purchased, at fair value | 220,656 | 232,436 | ||
Total debt securities [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 486,748 | 707,904 | ||
Trading instruments sold but not yet purchased, at fair value | 183,772 | 213,365 | ||
Total debt securities [Member] | Municipal & provincial obligations [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 202,826 | 346,590 | ||
Trading instruments sold but not yet purchased, at fair value | 1,777 | 212 | ||
Total debt securities [Member] | Corporate obligations [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 60,406 | 86,731 | ||
Trading instruments sold but not yet purchased, at fair value | 9,111 | 12,388 | ||
Total debt securities [Member] | Government and agency obligations [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 113,396 | 167,399 | ||
Trading instruments sold but not yet purchased, at fair value | 169,816 | 200,088 | ||
Total debt securities [Member] | Agency MBS and CMOs [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 93,149 | 105,169 | ||
Trading instruments sold but not yet purchased, at fair value | 3,068 | 556 | ||
Total debt securities [Member] | Non-agency CMOs & ABS [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 16,971 | 2,015 | ||
Trading instruments sold but not yet purchased, at fair value | 0 | 121 | ||
Derivative contracts [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 28,109 | [1] | 51,000 | [1] |
Trading instruments sold but not yet purchased, at fair value | 5,641 | [1] | 3,102 | [1] |
Equity securities [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 53,015 | 26,523 | ||
Trading instruments sold but not yet purchased, at fair value | 31,243 | 9,700 | ||
Other securities [Member] | ' | ' | ||
Trading Instruments and Investments Sold, Not Yet Purchased [Line Items] | ' | ' | ||
Trading instruments | 11,833 | 18,845 | ||
Trading instruments sold but not yet purchased, at fair value | $0 | $6,269 | ||
[1] | Represents the derivative contracts held for trading purposes. These balances do not include all derivative instruments since the derivative instruments associated with offsetting matched book positions are included on their own line item on our Consolidated Statements of Financial Condition. See Note 18 for further information regarding all of our derivative transactions. |
AVAILABLE_FOR_SALE_SECURITIES_1
AVAILABLE FOR SALE SECURITIES (Details) (USD $) | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||||
Sales of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Proceeds from sales of available for sale securities | $4,793,000 | $0 | $13,761,000 | |||
Gain (loss) on sale of available for sale securities | ' | 360,000 | ' | |||
ARS [Abstract] | ' | ' | ' | |||
Repurchased ARS redeemed at par | ' | ' | 16,000,000 | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | 700,781,000 | 759,839,000 | 567,127,000 | |||
Gross unrealized gains | 14,019,000 | 3,072,000 | 646,000 | |||
Gross unrealized losses | -15,956,000 | -29,037,000 | -47,108,000 | |||
Fair value | 698,844,000 | 733,874,000 | 520,665,000 | |||
Amortized cost [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 14,957,000 | ' | ' | |||
After five but within ten years | 57,614,000 | ' | ' | |||
After ten years | 628,210,000 | ' | ' | |||
Total | 700,781,000 | ' | ' | |||
Carrying value [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 14,990,000 | ' | ' | |||
After five but within ten years | 57,749,000 | ' | ' | |||
After ten years | 626,105,000 | ' | ' | |||
Total | 698,844,000 | ' | ' | |||
Weighted-average yield [Abstract] | ' | ' | ' | |||
Within one year (in hundredths) | 0.00% | ' | ' | |||
After one but within five years (in hundredths) | 0.28% | ' | ' | |||
After five but within ten years (in hundredths) | 0.39% | ' | ' | |||
After ten years (in hundredths) | 1.16% | ' | ' | |||
Total (in hundredths) | 1.07% | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Estimated fair value less than 12 months | 163,257,000 | 222,533,000 | ' | |||
Estimated fair value 12 months or more | 165,826,000 | 150,953,000 | ' | |||
Total estimated fair value | 329,083,000 | 373,486,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ' | ' | ' | |||
Unrealized losses less than 12 months | -1,806,000 | -10,472,000 | ' | |||
Unrealized losses 12 months or more | -14,150,000 | -18,565,000 | ' | |||
Total unrealized losses | -15,956,000 | -29,037,000 | ' | |||
Credit losses on debt securities recognized in earnings [Roll Forward] | ' | ' | ' | |||
Amount related to credit losses on securities we held at the beginning of the period | 27,581,000 | 22,306,000 | 18,816,000 | |||
Additions to the amount related to credit loss for which an OTTI was not previously recognized | 0 | 1,409,000 | 240,000 | |||
Decreases to the amount related to credit loss for securities sold during the period | 0 | 0 | -6,744,000 | |||
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | 636,000 | 3,866,000 | 9,994,000 | |||
Amount related to credit losses on securities we held at the end of the period | 28,217,000 | 27,581,000 | 22,306,000 | |||
Sub-total agency MBS & CMOs and non-agency CMOs [Member] | ' | ' | ' | |||
Sales of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Proceeds from sales of available for sale securities | 13,000 | ' | 13,800,000 | |||
Gain (loss) on sale of available for sale securities | ' | ' | -209,000 | |||
Auction rate securities [Member] | ' | ' | ' | |||
Sales of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Proceeds from sales of available for sale securities | 14,000,000 | 75,000,000 | ' | |||
Gain (loss) on sale of available for sale securities | 2,000,000 | ' | ' | |||
ARS [Abstract] | ' | ' | ' | |||
Par value of ARS repurchased | ' | ' | 245,000,000 | |||
Fair value of ARS repurchased | ' | 122,000,000 | 205,000,000 | |||
Excess of par over fair value of ARS repurchased | ' | ' | 40,000,000 | |||
RJ Bank [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | 470,602,000 | 516,907,000 | 371,076,000 | |||
Gross unrealized gains | 1,212,000 | 1,961,000 | 639,000 | |||
Gross unrealized losses | -14,688,000 | -18,758,000 | -47,108,000 | |||
Fair value | 457,126,000 | 500,110,000 | 324,607,000 | |||
RJ Bank [Member] | Agency MBS and CMOs [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | 326,858,000 | 350,568,000 | 178,120,000 | |||
Gross unrealized gains | 707,000 | 1,938,000 | 639,000 | |||
Gross unrealized losses | -1,536,000 | -203,000 | -27,000 | |||
Fair value | 326,029,000 | 352,303,000 | 178,732,000 | |||
Amortized cost [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 12,947,000 | ' | ' | |||
After five but within ten years | 55,761,000 | ' | ' | |||
After ten years | 258,150,000 | ' | ' | |||
Total | 326,858,000 | ' | ' | |||
Carrying value [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 12,976,000 | ' | ' | |||
After five but within ten years | 55,872,000 | ' | ' | |||
After ten years | 257,181,000 | ' | ' | |||
Total | 326,029,000 | ' | ' | |||
Weighted-average yield [Abstract] | ' | ' | ' | |||
Within one year (in hundredths) | 0.00% | ' | ' | |||
After one but within five years (in hundredths) | 0.29% | ' | ' | |||
After five but within ten years (in hundredths) | 0.39% | ' | ' | |||
After ten years (in hundredths) | 1.11% | ' | ' | |||
Total (in hundredths) | 0.95% | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ' | ' | ' | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position | 35 | ' | ' | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | 23 | ' | ' | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | 12 | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Estimated fair value less than 12 months | 157,580,000 | 43,792,000 | ' | |||
Estimated fair value 12 months or more | 22,940,000 | 4,362,000 | ' | |||
Total estimated fair value | 180,520,000 | 48,154,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ' | ' | ' | |||
Unrealized losses less than 12 months | -1,150,000 | -193,000 | ' | |||
Unrealized losses 12 months or more | -386,000 | -10,000 | ' | |||
Total unrealized losses | -1,536,000 | -203,000 | ' | |||
RJ Bank [Member] | Non-agency CMOs [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | 142,169,000 | [1] | 166,339,000 | [2] | 192,956,000 | [3] |
Gross unrealized gains | 4,000 | [1] | 23,000 | [2] | 0 | [3] |
Gross unrealized losses | -13,152,000 | [1] | -18,555,000 | [2] | -47,081,000 | [3] |
Fair value | 129,021,000 | [1] | 147,807,000 | [2] | 145,875,000 | [3] |
Non-credit portion of OTTI recorded in AOCI, before tax | 11,100,000 | 15,500,000 | 37,900,000 | |||
Amortized cost [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 0 | ' | ' | |||
After five but within ten years | 0 | ' | ' | |||
After ten years | 142,169,000 | ' | ' | |||
Total | 142,169,000 | ' | ' | |||
Carrying value [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 0 | ' | ' | |||
After five but within ten years | 0 | ' | ' | |||
After ten years | 129,021,000 | ' | ' | |||
Total | 129,021,000 | ' | ' | |||
Weighted-average yield [Abstract] | ' | ' | ' | |||
Within one year (in hundredths) | 0.00% | ' | ' | |||
After one but within five years (in hundredths) | 0.00% | ' | ' | |||
After five but within ten years (in hundredths) | 0.00% | ' | ' | |||
After ten years (in hundredths) | 2.68% | ' | ' | |||
Total (in hundredths) | 2.68% | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ' | ' | ' | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position | 24 | ' | ' | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | 2 | ' | ' | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | 22 | ' | ' | |||
Number of available-for-sale investment positions | 25 | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Estimated fair value less than 12 months | 4,906,000 | 0 | ' | |||
Estimated fair value 12 months or more | 123,139,000 | 146,591,000 | ' | |||
Total estimated fair value | 128,045,000 | 146,591,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ' | ' | ' | |||
Unrealized losses less than 12 months | -556,000 | 0 | ' | |||
Unrealized losses 12 months or more | -12,596,000 | -18,555,000 | ' | |||
Total unrealized losses | -13,152,000 | -18,555,000 | ' | |||
RJ Bank [Member] | Non-agency CMOs [Member] | Range, Low end [Member] | ' | ' | ' | |||
Significant assumptions [Abstract] | ' | ' | ' | |||
Default rate (in hundredths) | 0.00% | ' | ' | |||
Loss severity (in hundredths) | 0.00% | ' | ' | |||
Prepayment rate (in hundredths) | 1.70% | ' | ' | |||
RJ Bank [Member] | Non-agency CMOs [Member] | Range, High end [Member] | ' | ' | ' | |||
Significant assumptions [Abstract] | ' | ' | ' | |||
Default rate (in hundredths) | 28.60% | ' | ' | |||
Loss severity (in hundredths) | 76.60% | ' | ' | |||
Prepayment rate (in hundredths) | 47.00% | ' | ' | |||
RJ Bank [Member] | Non-agency CMOs [Member] | Weighted Average [Member] | ' | ' | ' | |||
Significant assumptions [Abstract] | ' | ' | ' | |||
Default rate (in hundredths) | 9.42% | [4] | ' | ' | ||
Loss severity (in hundredths) | 43.14% | [4] | ' | ' | ||
Prepayment rate (in hundredths) | 10.67% | [4] | ' | ' | ||
RJ Bank [Member] | Other securities [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | 1,575,000 | ' | ' | |||
Gross unrealized gains | 501,000 | ' | ' | |||
Gross unrealized losses | 0 | ' | ' | |||
Fair value | 2,076,000 | ' | ' | |||
Amortized cost [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 0 | ' | ' | |||
After five but within ten years | 0 | ' | ' | |||
After ten years | 1,575,000 | ' | ' | |||
Total | 1,575,000 | ' | ' | |||
Carrying value [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 0 | ' | ' | |||
After five but within ten years | 0 | ' | ' | |||
After ten years | 2,076,000 | ' | ' | |||
Total | 2,076,000 | ' | ' | |||
Weighted-average yield [Abstract] | ' | ' | ' | |||
Within one year (in hundredths) | 0.00% | ' | ' | |||
After one but within five years (in hundredths) | 0.00% | ' | ' | |||
After five but within ten years (in hundredths) | 0.00% | ' | ' | |||
After ten years (in hundredths) | 0.00% | ' | ' | |||
Total (in hundredths) | 0.00% | ' | ' | |||
RJ Bank [Member] | Sub-total agency MBS & CMOs and non-agency CMOs [Member] | ' | ' | ' | |||
Amortized cost [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 12,947,000 | ' | ' | |||
After five but within ten years | 55,761,000 | ' | ' | |||
After ten years | 401,894,000 | ' | ' | |||
Total | 470,602,000 | ' | ' | |||
Carrying value [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 12,976,000 | ' | ' | |||
After five but within ten years | 55,872,000 | ' | ' | |||
After ten years | 388,278,000 | ' | ' | |||
Total | 457,126,000 | ' | ' | |||
Weighted-average yield [Abstract] | ' | ' | ' | |||
Within one year (in hundredths) | 0.00% | ' | ' | |||
After one but within five years (in hundredths) | 0.29% | ' | ' | |||
After five but within ten years (in hundredths) | 0.39% | ' | ' | |||
After ten years (in hundredths) | 1.63% | ' | ' | |||
Total (in hundredths) | 1.44% | ' | ' | |||
RJ Bank [Member] | ARS - municipals [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Non-credit portion of OTTI recorded in AOCI, before tax | ' | 7,600,000 | ' | |||
RJ Bank [Member] | Auction rate securities preferred securities [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Non-credit portion of OTTI recorded in AOCI, before tax | ' | 1,500,000 | ' | |||
Non-broker-dealer subsidiaries [Member] | Other securities [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | ' | 3,000 | 3,000 | |||
Gross unrealized gains | ' | 9,000 | 7,000 | |||
Gross unrealized losses | ' | 0 | 0 | |||
Fair value | ' | 12,000 | 10,000 | |||
Non-broker-dealer subsidiaries [Member] | ARS - municipals [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | 125,371,000 | 131,208,000 | [5] | 79,524,000 | ||
Gross unrealized gains | 6,831,000 | 870,000 | [5] | 0 | ||
Gross unrealized losses | -1,268,000 | -8,519,000 | [5] | 0 | ||
Fair value | 130,934,000 | 123,559,000 | [5] | 79,524,000 | ||
Amortized cost [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 2,010,000 | ' | ' | |||
After five but within ten years | 1,853,000 | ' | ' | |||
After ten years | 121,508,000 | ' | ' | |||
Total | 125,371,000 | ' | ' | |||
Carrying value [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 2,014,000 | ' | ' | |||
After five but within ten years | 1,877,000 | ' | ' | |||
After ten years | 127,043,000 | ' | ' | |||
Total | 130,934,000 | ' | ' | |||
Weighted-average yield [Abstract] | ' | ' | ' | |||
Within one year (in hundredths) | 0.00% | ' | ' | |||
After one but within five years (in hundredths) | 0.22% | ' | ' | |||
After five but within ten years (in hundredths) | 0.31% | ' | ' | |||
After ten years (in hundredths) | 0.51% | ' | ' | |||
Total (in hundredths) | 0.50% | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Estimated fair value less than 12 months | 771,000 | 98,497,000 | ' | |||
Estimated fair value 12 months or more | 19,747,000 | 0 | ' | |||
Total estimated fair value | 20,518,000 | 98,497,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ' | ' | ' | |||
Unrealized losses less than 12 months | -100,000 | -8,519,000 | ' | |||
Unrealized losses 12 months or more | -1,168,000 | 0 | ' | |||
Total unrealized losses | -1,268,000 | -8,519,000 | ' | |||
Credit losses on debt securities recognized in earnings [Roll Forward] | ' | ' | ' | |||
OTTI losses | 0 | ' | ' | |||
Non-broker-dealer subsidiaries [Member] | Auction rate securities preferred securities [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | 104,808,000 | 111,721,000 | [6] | 116,524,000 | ||
Gross unrealized gains | 5,976,000 | 232,000 | [6] | 0 | ||
Gross unrealized losses | 0 | -1,760,000 | [6] | 0 | ||
Fair value | 110,784,000 | 110,193,000 | [6] | 116,524,000 | ||
Amortized cost [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 0 | ' | ' | |||
After five but within ten years | 0 | ' | ' | |||
After ten years | 104,808,000 | ' | ' | |||
Total | 104,808,000 | ' | ' | |||
Carrying value [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 0 | ' | ' | |||
After five but within ten years | 0 | ' | ' | |||
After ten years | 110,784,000 | ' | ' | |||
Total | 110,784,000 | ' | ' | |||
Weighted-average yield [Abstract] | ' | ' | ' | |||
Within one year (in hundredths) | 0.00% | ' | ' | |||
After one but within five years (in hundredths) | 0.00% | ' | ' | |||
After five but within ten years (in hundredths) | 0.00% | ' | ' | |||
After ten years (in hundredths) | 0.23% | ' | ' | |||
Total (in hundredths) | 0.23% | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Estimated fair value less than 12 months | ' | 80,244,000 | ' | |||
Estimated fair value 12 months or more | ' | 0 | ' | |||
Total estimated fair value | ' | 80,244,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ' | ' | ' | |||
Unrealized losses less than 12 months | ' | -1,760,000 | ' | |||
Unrealized losses 12 months or more | ' | 0 | ' | |||
Total unrealized losses | ' | -1,760,000 | ' | |||
Credit losses on debt securities recognized in earnings [Roll Forward] | ' | ' | ' | |||
OTTI losses | 0 | ' | ' | |||
Minimum number of agencies rating ARS preferred securities as investment grade | ' | 0 | ' | |||
Amount related to credit losses on securities we held at the beginning of the period | 0 | ' | ' | |||
Non-broker-dealer subsidiaries [Member] | Auction rate securities [Member] | ' | ' | ' | |||
Schedule of Available for Sale Securities [Abstract] | ' | ' | ' | |||
Cost basis | 230,179,000 | 242,929,000 | 196,048,000 | |||
Gross unrealized gains | 12,807,000 | 1,102,000 | 0 | |||
Gross unrealized losses | -1,268,000 | -10,279,000 | 0 | |||
Fair value | 241,718,000 | 233,752,000 | 196,048,000 | |||
Amortized cost [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 2,010,000 | ' | ' | |||
After five but within ten years | 1,853,000 | ' | ' | |||
After ten years | 226,316,000 | ' | ' | |||
Total | 230,179,000 | ' | ' | |||
Carrying value [Abstract] | ' | ' | ' | |||
Within one year | 0 | ' | ' | |||
After one but within five years | 2,014,000 | ' | ' | |||
After five but within ten years | 1,877,000 | ' | ' | |||
After ten years | 237,827,000 | ' | ' | |||
Total | $241,718,000 | ' | ' | |||
Weighted-average yield [Abstract] | ' | ' | ' | |||
Within one year (in hundredths) | 0.00% | ' | ' | |||
After one but within five years (in hundredths) | 0.22% | ' | ' | |||
After five but within ten years (in hundredths) | 0.31% | ' | ' | |||
After ten years (in hundredths) | 0.38% | ' | ' | |||
Total (in hundredths) | 0.38% | ' | ' | |||
[1] | As of September 30, 2013, the non-credit portion of OTTI recorded in AOCI was $11.1 million (before taxes). | |||||
[2] | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $15.5 million (before taxes). | |||||
[3] | As of September 30, 2011, the non-credit portion of OTTI recorded in AOCI was $37.9 million (before taxes). | |||||
[4] | Represents the expected activity for the next twelve months. | |||||
[5] | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $7.6 million (before taxes). | |||||
[6] | As of September 30, 2012, the non-credit portion of OTTI recorded in AOCI was $1.5 million (before taxes). |
RECEIVABLES_FROM_AND_PAYABLES_2
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Receivables from brokerage clients | ' | ' |
Brokerage client receivables | $1,983,402 | $2,067,207 |
Allowance for doubtful accounts | -62 | -90 |
Brokerage client receivables, net | 1,983,340 | 2,067,117 |
Payables to brokerage clients | ' | ' |
Interest bearing | 5,457,107 | 4,299,640 |
Non-interest bearing | 485,736 | 285,016 |
Total brokerage client payables | $5,942,843 | $4,584,656 |
BANK_LOANS_NET_Held_for_Sale_a
BANK LOANS, NET, Held for Sale and Held for Investment (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | |||||
In Thousands, unless otherwise specified | ||||||||||
Held for Sale and Held for Investment Loan Portfolios [Abstract] | ' | ' | ' | ' | ' | |||||
Number of loan portfolio segments | 5 | ' | ' | ' | ' | |||||
Loans Receivable Held-for-sale, Net [Abstract] | ' | ' | ' | ' | ' | |||||
Loans held for sale, net | $110,292 | [1] | $160,515 | [1] | $102,236 | [1] | $6,114 | [1] | $40,484 | [1] |
Loans held for investment: | ' | ' | ' | ' | ' | |||||
Total loans held for investment | 8,891,346 | [2] | 8,049,236 | [2] | 6,636,839 | 6,275,175 | 6,743,838 | |||
Net unearned income and deferred expenses | -43,936 | -70,698 | -45,417 | -39,276 | -40,077 | |||||
Total loans held for investment, net | 8,847,410 | [1] | 7,978,538 | [1] | 6,591,422 | [1] | 6,235,899 | [1] | 6,703,761 | [1] |
Total loans held for sale and investment | 8,957,702 | 8,139,053 | 6,693,658 | 6,242,013 | 6,744,245 | |||||
Allowance for loan losses | -136,501 | -147,541 | -145,744 | -147,084 | -150,272 | |||||
Bank loans, net | 8,821,201 | 7,991,512 | 6,547,914 | 6,094,929 | 6,593,973 | |||||
Associated percentage of each major loan category in loan portfolios [Abstract] | ' | ' | ' | ' | ' | |||||
Loans held for sale, net (in hundredths) | 1.00% | [1] | 2.00% | [1] | 2.00% | [1] | 0.00% | [1] | 1.00% | [1] |
Total loans held for sale and investment (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||
Domestic loans [Member] | ' | ' | ' | ' | ' | |||||
Loans held for investment: | ' | ' | ' | ' | ' | |||||
C&I loans | 4,439,668 | 4,553,061 | 3,987,122 | 3,173,093 | 3,030,575 | |||||
CRE construction loans | 38,964 | 26,360 | 29,087 | 65,512 | 163,951 | |||||
CRE loans | 1,075,986 | 828,414 | 742,889 | 937,669 | 1,080,160 | |||||
Residential mortgage loans | 1,743,787 | 1,690,465 | 1,754,925 | 2,013,681 | 2,395,080 | |||||
Consumer loans | 554,210 | 350,770 | 7,438 | 23,940 | 22,816 | |||||
Associated percentage of each major loan category in loan portfolios [Abstract] | ' | ' | ' | ' | ' | |||||
C&I loans (in hundredths) | 50.00% | 55.00% | 59.00% | 51.00% | 45.00% | |||||
CRE construction loans (in hundredths) | 0.00% | 1.00% | 0.00% | 1.00% | 2.00% | |||||
CRE loans (in hundredths) | 12.00% | 10.00% | 11.00% | 15.00% | 16.00% | |||||
Residential mortgage loans (in hundredths) | 20.00% | 21.00% | 26.00% | 32.00% | 35.00% | |||||
Consumer loans (in hundredths) | 6.00% | 4.00% | 0.00% | 0.00% | 0.00% | |||||
Foreign loans [Member] | ' | ' | ' | ' | ' | |||||
Loans held for investment: | ' | ' | ' | ' | ' | |||||
C&I loans | 806,337 | 465,770 | 113,817 | 59,630 | 49,341 | |||||
CRE construction loans | 21,876 | 23,114 | 0 | ' | ' | |||||
CRE loans | 207,060 | 108,036 | 0 | ' | ' | |||||
Residential mortgage loans | 1,863 | 1,521 | 1,561 | 1,650 | 1,915 | |||||
Consumer loans | $1,595 | $1,725 | $0 | ' | ' | |||||
Associated percentage of each major loan category in loan portfolios [Abstract] | ' | ' | ' | ' | ' | |||||
C&I loans (in hundredths) | 9.00% | 6.00% | 2.00% | 1.00% | 1.00% | |||||
CRE construction loans (in hundredths) | 0.00% | 0.00% | 0.00% | ' | ' | |||||
CRE loans (in hundredths) | 2.00% | 1.00% | 0.00% | ' | ' | |||||
Residential mortgage loans (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||
Consumer loans (in hundredths) | 0.00% | 0.00% | 0.00% | ' | ' | |||||
[1] | Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs. | |||||||||
[2] | Excludes any net unearned income and deferred expenses. |
BANK_LOANS_NET_Originations_Pu
BANK LOANS, NET, Originations, Purchases, and Sales (Details) (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
Loans held for sale [Member] | ' | ' | ' | |
Payments for Origination and Purchases of Loans Held-for-sale [Abstract] | ' | ' | ' | |
Loans held for sale purchased or originated | $1,300,000,000 | $903,200,000 | $354,900,000 | |
Proceeds from Sale of Loans Held-for-sale [Abstract] | ' | ' | ' | |
Proceeds for sale of loans held for sale | 300,200,000 | 183,600,000 | 93,200,000 | |
Gain (loss) on sales of loans, net | 3,600,000 | 1,700,000 | 830,000 | |
Unrealized loss on loans held for sale | 2,900,000 | 1,200,000 | 719,000 | |
Loans held for investment [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | 389,975,000 | 846,424,000 | 250,850,000 | |
Sales | 176,186,000 | 85,090,000 | 57,209,000 | |
Loans held for investment [Member] | C&I loans [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | 358,309,000 | 470,859,000 | [1] | 156,475,000 |
Sales | 176,186,000 | 85,090,000 | 57,209,000 | |
Loans held for investment [Member] | CRE construction loans [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | 0 | 31,074,000 | [1] | 0 |
Sales | 0 | 0 | 0 | |
Loans held for investment [Member] | CRE loans [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | 5,048,000 | 121,245,000 | [1] | 2,630,000 |
Sales | 0 | 0 | 0 | |
Loans held for investment [Member] | Residential mortgage loans [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | 26,618,000 | 38,220,000 | 91,745,000 | |
Sales | 0 | 0 | 0 | |
Loans held for investment [Member] | Consumer loans [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | 0 | 185,026,000 | [2] | 0 |
Sales | 0 | 0 | 0 | |
RJ Bank [Member] | Canadian loan portfolio purchased from AIB [Member] | Loans held for investment [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | ' | 367,000,000 | ' | |
RJ Bank [Member] | Canadian loan portfolio purchased from AIB [Member] | Loans held for investment [Member] | C&I loans [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | ' | 219,000,000 | ' | |
RJ Bank [Member] | Canadian loan portfolio purchased from AIB [Member] | Loans held for investment [Member] | CRE construction loans [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | ' | 31,000,000 | ' | |
RJ Bank [Member] | Canadian loan portfolio purchased from AIB [Member] | Loans held for investment [Member] | CRE loans [Member] | ' | ' | ' | |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | ' | ' | ' | |
Purchases | ' | $117,000,000 | ' | |
[1] | Includes a total of $367 million for a Canadian loan portfolio purchased during the year ended September 30, 2012, which was comprised of $219 million C&I, $31 million of CRE construction and $117 million of CRE loans. | |||
[2] | Represents loans primarily secured by the borrower’s marketable securities. |
BANK_LOANS_NET_Nonperforming_L
BANK LOANS, NET, Nonperforming Loans Held for Investment and Total Nonperforming Assets (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | |
Nonaccrual loans [Abstract] | ' | ' | ' | ' | ' |
Total nonaccrual loans | $101,958,000 | $106,660,000 | $132,586,000 | $147,896,000 | $129,058,000 |
Amount excluded from nonperforming assets schedule | 10,200,000 | 12,900,000 | 10,300,000 | 8,200,000 | 1,300,000 |
Accruing loans which are 90 days past due [Abstract] | ' | ' | ' | ' | ' |
Total accruing loans which are 90 days past due | 0 | 0 | 737,000 | 6,087,000 | 29,324,000 |
Total nonperforming loans | 101,958,000 | 106,660,000 | 133,323,000 | 153,983,000 | 158,382,000 |
Real estate owned and other repossessed assets, net [Abstract] | ' | ' | ' | ' | ' |
Total real estate owned and other repossessed assets, net | 2,434,000 | 8,218,000 | 14,572,000 | 27,925,000 | 8,691,000 |
Total nonperforming assets, net | 104,392,000 | 114,878,000 | 147,895,000 | 181,908,000 | 167,073,000 |
Total nonperforming assets to total RJ Bank assets (in hundredths) | 0.99% | 1.18% | 1.64% | 2.48% | 2.10% |
Outstanding commitments on nonperforming loans [Abstract] | ' | ' | ' | ' | ' |
Outstanding commitments on nonperforming loans | 0 | 0 | ' | ' | ' |
Interest income on nonperforming loans [Abstract] | ' | ' | ' | ' | ' |
Gross interest income related to nonperforming loans | 3,200,000 | 4,300,000 | 5,100,000 | ' | ' |
Interest income recognized on nonperforming loans | 1,500,000 | 1,800,000 | 1,200,000 | ' | ' |
C&I loans [Member] | ' | ' | ' | ' | ' |
Nonaccrual loans [Abstract] | ' | ' | ' | ' | ' |
Total nonaccrual loans | 89,000 | 19,517,000 | 25,685,000 | 0 | 0 |
CRE loans [Member] | ' | ' | ' | ' | ' |
Nonaccrual loans [Abstract] | ' | ' | ' | ' | ' |
Total nonaccrual loans | 25,512,000 | 8,404,000 | 15,842,000 | 67,071,000 | 73,961,000 |
Accruing loans which are 90 days past due [Abstract] | ' | ' | ' | ' | ' |
Total accruing loans which are 90 days past due | 0 | 0 | 0 | 830,000 | 12,461,000 |
Real estate owned and other repossessed assets, net [Abstract] | ' | ' | ' | ' | ' |
Total real estate owned and other repossessed assets, net | 0 | 4,902,000 | 7,707,000 | 19,486,000 | 4,646,000 |
Residential mortgage - first mortgage loans [Member] | ' | ' | ' | ' | ' |
Nonaccrual loans [Abstract] | ' | ' | ' | ' | ' |
Total nonaccrual loans | 75,889,000 | 78,372,000 | 90,992,000 | 80,754,000 | 54,986,000 |
Accruing loans which are 90 days past due [Abstract] | ' | ' | ' | ' | ' |
Total accruing loans which are 90 days past due | 0 | 0 | 690,000 | 5,098,000 | 16,863,000 |
Real estate owned and other repossessed assets, net [Abstract] | ' | ' | ' | ' | ' |
Total real estate owned and other repossessed assets, net | 2,434,000 | 3,316,000 | 6,852,000 | 8,439,000 | 4,045,000 |
Residential mortgage - Home equity loans/lines [Member] | ' | ' | ' | ' | ' |
Nonaccrual loans [Abstract] | ' | ' | ' | ' | ' |
Total nonaccrual loans | 468,000 | 367,000 | 67,000 | 71,000 | 111,000 |
Accruing loans which are 90 days past due [Abstract] | ' | ' | ' | ' | ' |
Total accruing loans which are 90 days past due | 0 | 0 | 47,000 | 159,000 | 0 |
Real estate owned and other repossessed assets, net [Abstract] | ' | ' | ' | ' | ' |
Total real estate owned and other repossessed assets, net | $0 | $0 | $13,000 | $0 | $0 |
BANK_LOANS_NET_Analysis_of_Pay
BANK LOANS, NET, Analysis of Payment Status of Loans Held for Investment (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | ||
Analysis of payment status of loans held for investment [Abstract] | ' | ' | ' | ' | ' | ||
30-59 days | $4,891,000 | $7,549,000 | ' | ' | ' | ||
60-89 days | 2,068,000 | 3,287,000 | ' | ' | ' | ||
90 days or more | 43,393,000 | 54,436,000 | ' | ' | ' | ||
Total past due | 50,352,000 | 65,272,000 | ' | ' | ' | ||
Current | 8,840,994,000 | [1] | 7,983,964,000 | [1] | ' | ' | ' |
Total loans held for investment | 8,891,346,000 | [2] | 8,049,236,000 | [2] | 6,636,839,000 | 6,275,175,000 | 6,743,838,000 |
Performing nonaccrual loans | 55,500,000 | [1] | 48,600,000 | [1] | ' | ' | ' |
C&I loans [Member] | ' | ' | ' | ' | ' | ||
Analysis of payment status of loans held for investment [Abstract] | ' | ' | ' | ' | ' | ||
30-59 days | 135,000 | 222,000 | ' | ' | ' | ||
60-89 days | 0 | 0 | ' | ' | ' | ||
90 days or more | 0 | 0 | ' | ' | ' | ||
Total past due | 135,000 | 222,000 | ' | ' | ' | ||
Current | 5,245,870,000 | [1] | 5,018,609,000 | [1] | ' | ' | ' |
Total loans held for investment | 5,246,005,000 | [2] | 5,018,831,000 | [2] | ' | ' | ' |
CRE construction loans [Member] | ' | ' | ' | ' | ' | ||
Analysis of payment status of loans held for investment [Abstract] | ' | ' | ' | ' | ' | ||
30-59 days | 0 | 0 | ' | ' | ' | ||
60-89 days | 0 | 0 | ' | ' | ' | ||
90 days or more | 0 | 0 | ' | ' | ' | ||
Total past due | 0 | 0 | ' | ' | ' | ||
Current | 60,840,000 | [1] | 49,474,000 | [1] | ' | ' | ' |
Total loans held for investment | 60,840,000 | [2] | 49,474,000 | [2] | ' | ' | ' |
CRE loans [Member] | ' | ' | ' | ' | ' | ||
Analysis of payment status of loans held for investment [Abstract] | ' | ' | ' | ' | ' | ||
30-59 days | 0 | 0 | ' | ' | ' | ||
60-89 days | 0 | 0 | ' | ' | ' | ||
90 days or more | 17,000 | 4,960,000 | ' | ' | ' | ||
Total past due | 17,000 | 4,960,000 | ' | ' | ' | ||
Current | 1,283,029,000 | [1] | 931,490,000 | [1] | ' | ' | ' |
Total loans held for investment | 1,283,046,000 | [2] | 936,450,000 | [2] | ' | ' | ' |
Residential mortgage - first mortgage loans [Member] | ' | ' | ' | ' | ' | ||
Analysis of payment status of loans held for investment [Abstract] | ' | ' | ' | ' | ' | ||
30-59 days | 4,756,000 | 7,239,000 | ' | ' | ' | ||
60-89 days | 2,068,000 | 3,037,000 | ' | ' | ' | ||
90 days or more | 43,004,000 | 49,476,000 | ' | ' | ' | ||
Total past due | 49,828,000 | 59,752,000 | ' | ' | ' | ||
Current | 1,673,619,000 | [1] | 1,607,156,000 | [1] | ' | ' | ' |
Total loans held for investment | 1,723,447,000 | [2] | 1,666,908,000 | [2] | ' | ' | ' |
Residential mortgage - Home equity loans/lines [Member] | ' | ' | ' | ' | ' | ||
Analysis of payment status of loans held for investment [Abstract] | ' | ' | ' | ' | ' | ||
30-59 days | 0 | 88,000 | ' | ' | ' | ||
60-89 days | 0 | 250,000 | ' | ' | ' | ||
90 days or more | 372,000 | 0 | ' | ' | ' | ||
Total past due | 372,000 | 338,000 | ' | ' | ' | ||
Current | 21,831,000 | [1] | 24,740,000 | [1] | ' | ' | ' |
Total loans held for investment | 22,203,000 | [2] | 25,078,000 | [2] | ' | ' | ' |
Consumer loans [Member] | ' | ' | ' | ' | ' | ||
Analysis of payment status of loans held for investment [Abstract] | ' | ' | ' | ' | ' | ||
30-59 days | 0 | 0 | ' | ' | ' | ||
60-89 days | 0 | 0 | ' | ' | ' | ||
90 days or more | 0 | 0 | ' | ' | ' | ||
Total past due | 0 | 0 | ' | ' | ' | ||
Current | 555,805,000 | [1] | 352,495,000 | [1] | ' | ' | ' |
Total loans held for investment | $555,805,000 | [2] | $352,495,000 | [2] | ' | ' | ' |
[1] | Includes $55.5 million and $48.6 million of nonaccrual loans at September 30, 2013 and 2012, respectively, which are performing pursuant to their contractual terms. | ||||||
[2] | Excludes any net unearned income and deferred expenses. |
BANK_LOANS_NET_Summary_of_Impa
BANK LOANS, NET, Summary of Impaired Loans (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
Gross recorded investment [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, gross recorded investment | $52,677 | [1] | $90,648 | [1] | ' |
Impiared loans without allowance for loan losses, recorded investment | 47,029 | [2] | 17,633 | [2] | ' |
Total impaired loans, gross recorded investment | 99,706 | [2] | 108,281 | [2] | ' |
Unpaid principal balance [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, unpaid principal balance | 77,340 | [1] | 136,852 | [1] | ' |
Impaired loans without allowance for loan losses, unpaid principal balance | 77,940 | [2] | 33,794 | [2] | ' |
Total impaired loans, unpaid principal balance | 155,280 | [2] | 170,646 | [2] | ' |
Allowance for loan losses [Abstract] | ' | ' | ' | ||
Impaired loans with allownace for loan losses, allowance for losses | 6,651 | [1],[2] | 14,489 | [1],[2] | ' |
Impaired loans without allowance for loan losses, allowance for loan lossees | 0 | [2] | 0 | [2] | ' |
Loan and Lease Receivables, Impaired [Abstract] | ' | ' | ' | ||
Average impaired loan balance | 106,354 | 109,090 | 133,220 | ||
Interest income recognized | 1,644 | 1,401 | 960 | ||
C&I loans [Member] | ' | ' | ' | ||
Gross recorded investment [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, gross recorded investment | 0 | [1] | 19,517 | [1] | ' |
Impiared loans without allowance for loan losses, recorded investment | 89 | [2] | 0 | [2] | ' |
Unpaid principal balance [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, unpaid principal balance | 0 | [1] | 30,314 | [1] | ' |
Impaired loans without allowance for loan losses, unpaid principal balance | 94 | [2] | 0 | [2] | ' |
Allowance for loan losses [Abstract] | ' | ' | ' | ||
Impaired loans with allownace for loan losses, allowance for losses | 0 | [1] | 5,232 | [1] | ' |
Impaired loans without allowance for loan losses, allowance for loan lossees | 0 | [2] | 0 | [2] | ' |
Loan and Lease Receivables, Impaired [Abstract] | ' | ' | ' | ||
Impaired loan, troubled debt restructurings | ' | 1,700 | ' | ||
Average impaired loan balance | 15,398 | 10,196 | 8,673 | ||
CRE loans [Member] | ' | ' | ' | ||
Gross recorded investment [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, gross recorded investment | 17 | [1] | 18 | [1] | ' |
Impiared loans without allowance for loan losses, recorded investment | 25,495 | [2] | 8,386 | [2] | ' |
Unpaid principal balance [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, unpaid principal balance | 26 | [1] | 26 | [1] | ' |
Impaired loans without allowance for loan losses, unpaid principal balance | 45,229 | [2] | 18,440 | [2] | ' |
Allowance for loan losses [Abstract] | ' | ' | ' | ||
Impaired loans with allownace for loan losses, allowance for losses | 1 | [1] | 1 | [1] | ' |
Impaired loans without allowance for loan losses, allowance for loan lossees | 0 | [2] | 0 | [2] | ' |
Loan and Lease Receivables, Impaired [Abstract] | ' | ' | ' | ||
Impaired loan, troubled debt restructurings | 2,200 | 3,400 | ' | ||
Average impaired loan balance | 13,352 | 11,902 | 38,542 | ||
Residential mortgage - first mortgage loans [Member] | ' | ' | ' | ||
Gross recorded investment [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, gross recorded investment | 52,624 | [1] | 70,985 | [1] | ' |
Impiared loans without allowance for loan losses, recorded investment | 21,445 | [2] | 9,247 | [2] | ' |
Unpaid principal balance [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, unpaid principal balance | 77,240 | [1] | 106,384 | [1] | ' |
Impaired loans without allowance for loan losses, unpaid principal balance | 32,617 | [2] | 15,354 | [2] | ' |
Allowance for loan losses [Abstract] | ' | ' | ' | ||
Impaired loans with allownace for loan losses, allowance for losses | 6,646 | [1] | 9,214 | [1] | ' |
Impaired loans without allowance for loan losses, allowance for loan lossees | 0 | [2] | 0 | [2] | ' |
Loan and Lease Receivables, Impaired [Abstract] | ' | ' | ' | ||
Impaired loan, troubled debt restructurings | 36,600 | 26,700 | ' | ||
Average impaired loan balance | 77,511 | 86,854 | 85,863 | ||
Interest income recognized | 1,644 | 1,397 | 955 | ||
Residential mortgage - Home equity loans/lines [Member] | ' | ' | ' | ||
Gross recorded investment [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, gross recorded investment | 36 | [1] | 128 | [1] | ' |
Unpaid principal balance [Abstract] | ' | ' | ' | ||
Impaired loans with allowance for loan losses, unpaid principal balance | 74 | [1] | 128 | [1] | ' |
Allowance for loan losses [Abstract] | ' | ' | ' | ||
Impaired loans with allownace for loan losses, allowance for losses | 4 | [1] | 42 | [1] | ' |
Loan and Lease Receivables, Impaired [Abstract] | ' | ' | ' | ||
Impaired loan, troubled debt restructurings | ' | 128 | ' | ||
Average impaired loan balance | 93 | 138 | 142 | ||
Interest income recognized | $0 | $4 | $5 | ||
[1] | Impaired loan balances have had reserves established based upon management’s analysis. | ||||
[2] | When the discounted cash flow, collateral value or market value equals or exceeds the carrying value of the loan, then the loan does not require an allowance. These are generally loans in process of foreclosure that have already been adjusted to fair value. |
BANK_LOANS_NET_Impact_of_TDRs_
BANK LOANS, NET, Impact of TDRs (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
TDR | TDR | ||
Modification of loans [Abstract] | ' | ' | ' |
Number of contracts (in TDRs) | ' | ' | 27 |
Pre-modification outstanding recorded investment | ' | ' | $29,703,000 |
Post-modification outstanding recorded investment | ' | ' | 29,717,000 |
Subsquent default of modified loans [Abstract] | ' | ' | ' |
Outstanding commitments on TDRs | 0 | 0 | ' |
C&I loans [Member] | ' | ' | ' |
Modification of loans [Abstract] | ' | ' | ' |
Number of contracts (in TDRs) | ' | ' | 1 |
Pre-modification outstanding recorded investment | ' | ' | 12,450,000 |
Post-modification outstanding recorded investment | ' | ' | 12,034,000 |
CRE loans [Member] | ' | ' | ' |
Modification of loans [Abstract] | ' | ' | ' |
Number of contracts (in TDRs) | ' | ' | 1 |
Pre-modification outstanding recorded investment | ' | ' | 9,226,000 |
Post-modification outstanding recorded investment | ' | ' | 9,226,000 |
Residential mortgage - first mortgage loans [Member] | ' | ' | ' |
Modification of loans [Abstract] | ' | ' | ' |
Number of contracts (in TDRs) | 56 | 20 | 25 |
Pre-modification outstanding recorded investment | 13,270 | 5,875,000 | 8,027,000 |
Post-modification outstanding recorded investment | 13,551 | 6,283,000 | 8,457,000 |
Subsquent default of modified loans [Abstract] | ' | ' | ' |
Number of contract modifications with subsequent defaults | 2 | 5 | ' |
Recorded investment of contract modifications with subsequent defaults | $291,000 | $1,200,000 | $559,000 |
BANK_LOANS_NET_Credit_Quality_
BANK LOANS, NET, Credit Quality of Held for Investment Loan Portfolio (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | $8,891,346 | $8,049,236 | ||
Performing residential first mortgage loans | 1,436,161 | [1] | ' | |
LTV less than 50% [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Performing residential first mortgage loans | 380,480 | [1] | ' | |
LTV greater than 50% but less than 80% [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Performing residential first mortgage loans | 670,647 | [1] | ' | |
LTV greater than 80% but less than 100% [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Performing residential first mortgage loans | 276,525 | [1] | ' | |
LTV greater than 100% but less than 120% [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Performing residential first mortgage loans | 83,970 | [1] | ' | |
LTV greater than 120% but less than 140% [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Performing residential first mortgage loans | 20,469 | [1] | ' | |
LTV greater than 140% [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Performing residential first mortgage loans | 4,070 | [1] | ' | |
C&I loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 5,246,005 | 5,018,831 | ||
CRE construction loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 60,840 | 49,474 | ||
CRE loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 1,283,046 | 936,450 | ||
Residential mortgage - first mortgage loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 1,723,448 | 1,666,908 | ||
Residential mortgage - Home equity loans/lines [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 22,202 | 25,078 | ||
Consumer loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 555,805 | 352,495 | ||
Pass [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 8,535,233 | 7,574,896 | ||
Pass [Member] | C&I loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 5,012,786 | 4,777,738 | ||
Pass [Member] | CRE construction loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 60,840 | 49,474 | ||
Pass [Member] | CRE loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 1,257,130 | 806,427 | ||
Pass [Member] | Residential mortgage - first mortgage loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 1,627,090 | 1,564,257 | ||
Pass [Member] | Residential mortgage - Home equity loans/lines [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 21,582 | 24,505 | ||
Pass [Member] | Consumer loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 555,805 | 352,495 | ||
Special Mention [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 158,416 | [2] | 260,857 | [2] |
Special Mention [Member] | C&I loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 139,159 | [2] | 179,044 | [2] |
Special Mention [Member] | CRE construction loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 0 | [2] | 0 | [2] |
Special Mention [Member] | CRE loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 195 | [2] | 59,001 | [2] |
Special Mention [Member] | Residential mortgage - first mortgage loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 18,912 | [2] | 22,606 | [2] |
Special Mention [Member] | Residential mortgage - Home equity loans/lines [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 150 | [2] | 206 | [2] |
Special Mention [Member] | Consumer loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 0 | [2] | 0 | [2] |
Substandard [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 195,500 | [2] | 208,313 | [2] |
Substandard [Member] | C&I loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 94,060 | [2] | 60,323 | [2] |
Substandard [Member] | CRE construction loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 0 | [2] | 0 | [2] |
Substandard [Member] | CRE loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 23,524 | [2] | 67,578 | [2] |
Substandard [Member] | Residential mortgage - first mortgage loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 77,446 | [2] | 80,045 | [2] |
Substandard [Member] | Residential mortgage - Home equity loans/lines [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 470 | [2] | 367 | [2] |
Substandard [Member] | Consumer loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 0 | [2] | 0 | [2] |
Doubtful [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 2,197 | [2] | 5,170 | [2] |
Doubtful [Member] | C&I loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 0 | [2] | 1,726 | [2] |
Doubtful [Member] | CRE construction loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 0 | [2] | 0 | [2] |
Doubtful [Member] | CRE loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 2,197 | [2] | 3,444 | [2] |
Doubtful [Member] | Residential mortgage - first mortgage loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 0 | [2] | 0 | [2] |
Doubtful [Member] | Residential mortgage - Home equity loans/lines [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | 0 | [2] | 0 | [2] |
Doubtful [Member] | Consumer loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans held for investment | $0 | [2] | $0 | [2] |
[1] | Excludes loans that have full repurchase recourse for any delinquent loans. | |||
[2] | Loans classified as special mention, substandard or doubtful are all considered to be “criticized†loans. |
BANK_LOANS_NET_Allowance_for_L
BANK LOANS, NET, Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Changes in the allowance for loan losses [Roll Forward] | ' | ' | ' |
Balance at beginning of period | $147,541 | $145,744 | $147,084 |
Provision for loan losses | 2,565 | 25,894 | 33,655 |
Net charge-offs: | ' | ' | ' |
Charge-offs | -17,437 | -27,852 | -38,418 |
Recoveries | 4,128 | 3,638 | 3,423 |
Net charge-offs | -13,309 | -24,214 | -34,995 |
Foreign exchange translation adjustment | -296 | 117 | ' |
Balance at end of period | 136,501 | 147,541 | 145,744 |
Loans held for sale [Member] | ' | ' | ' |
Changes in the allowance for loan losses [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 0 | 5 | 23 |
Provision for loan losses | 0 | -5 | -18 |
Net charge-offs: | ' | ' | ' |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | ' |
Balance at end of period | ' | 0 | 5 |
Loans held for investment [Member] | ' | ' | ' |
Net charge-offs: | ' | ' | ' |
Balance at end of period | 136,501 | 147,541 | ' |
Loans held for investment [Member] | C&I loans [Member] | ' | ' | ' |
Changes in the allowance for loan losses [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 92,409 | 81,267 | 60,464 |
Provision for loan losses | 4,505 | 21,543 | 21,261 |
Net charge-offs: | ' | ' | ' |
Charge-offs | -813 | -10,486 | -458 |
Recoveries | 117 | 0 | 0 |
Net charge-offs | -696 | -10,486 | -458 |
Foreign exchange translation adjustment | -224 | 85 | ' |
Balance at end of period | 95,994 | 92,409 | 81,267 |
Loans held for investment [Member] | CRE construction loans [Member] | ' | ' | ' |
Changes in the allowance for loan losses [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 739 | 490 | 4,473 |
Provision for loan losses | 273 | 242 | -3,983 |
Net charge-offs: | ' | ' | ' |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 |
Foreign exchange translation adjustment | -12 | 7 | ' |
Balance at end of period | 1,000 | 739 | 490 |
Loans held for investment [Member] | CRE loans [Member] | ' | ' | ' |
Changes in the allowance for loan losses [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 27,546 | 30,752 | 47,771 |
Provision for loan losses | -301 | -2,305 | -3,485 |
Net charge-offs: | ' | ' | ' |
Charge-offs | -9,599 | -2,000 | -15,204 |
Recoveries | 1,680 | 1,074 | 1,670 |
Net charge-offs | -7,919 | -926 | -13,534 |
Foreign exchange translation adjustment | -60 | 25 | ' |
Balance at end of period | 19,266 | 27,546 | 30,752 |
Loans held for investment [Member] | Residential mortgage loans [Member] | ' | ' | ' |
Changes in the allowance for loan losses [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 26,138 | 33,210 | 34,297 |
Provision for loan losses | -2,540 | 5,655 | 19,670 |
Net charge-offs: | ' | ' | ' |
Charge-offs | -6,771 | -15,270 | -22,501 |
Recoveries | 2,299 | 2,543 | 1,744 |
Net charge-offs | -4,472 | -12,727 | -20,757 |
Foreign exchange translation adjustment | 0 | 0 | ' |
Balance at end of period | 19,126 | 26,138 | 33,210 |
Loans held for investment [Member] | Consumer loans [Member] | ' | ' | ' |
Changes in the allowance for loan losses [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 709 | 20 | 56 |
Provision for loan losses | 628 | 764 | 210 |
Net charge-offs: | ' | ' | ' |
Charge-offs | -254 | -96 | -255 |
Recoveries | 32 | 21 | 9 |
Net charge-offs | -222 | -75 | -246 |
Foreign exchange translation adjustment | 0 | 0 | ' |
Balance at end of period | $1,115 | $709 | $20 |
BANK_LOANS_NET_BANK_LOANS_NET_
BANK LOANS, NET BANK LOANS, NET, Allowance for Loan Losses, Loans Individually and Collectively Evaluated for Impairment (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2009 | ||
In Thousands, unless otherwise specified | |||||||
Allowance for loan losses [Abstract] | ' | ' | ' | ' | ' | ||
Total allowance for loan losses | $136,501 | $147,541 | $145,744 | $147,084 | ' | ||
Recorded investment [Abstract] | ' | ' | ' | ' | ' | ||
Total recorded investment | 8,891,346 | [1] | 8,049,236 | [1] | 6,636,839 | 6,275,175 | 6,743,838 |
Recorded investment in loans acquired with deteriorated credit quality [Abstract] | ' | ' | ' | ' | ' | ||
Recorded investment in loans acquired with deteriorated credit quality | 0 | 0 | ' | ' | ' | ||
Reserve for unfunded lending commitments [Abstract] | ' | ' | ' | ' | ' | ||
Reserve for unfunded lending commitments | 9,300 | 9,300 | ' | ' | ' | ||
CRE construction loans [Member] | ' | ' | ' | ' | ' | ||
Recorded investment [Abstract] | ' | ' | ' | ' | ' | ||
Total recorded investment | 60,840 | [1] | 49,474 | [1] | ' | ' | ' |
Loans held for investment [Member] | ' | ' | ' | ' | ' | ||
Allowance for loan losses [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 2,380 | 8,390 | ' | ' | ' | ||
Collectively evaluated for impairment | 134,121 | 139,151 | ' | ' | ' | ||
Total allowance for loan losses | 136,501 | 147,541 | ' | ' | ' | ||
Recorded investment [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 62,249 | [1] | 54,772 | [1] | ' | ' | ' |
Collectively evaluated for impairment | 8,829,097 | [1] | 7,994,464 | [1] | ' | ' | ' |
Total recorded investment | 8,891,346 | [1] | 8,049,236 | [1] | ' | ' | ' |
Loans held for investment [Member] | C&I loans [Member] | ' | ' | ' | ' | ' | ||
Allowance for loan losses [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 0 | 5,232 | ' | ' | ' | ||
Collectively evaluated for impairment | 95,994 | 87,177 | ' | ' | ' | ||
Total allowance for loan losses | 95,994 | 92,409 | 81,267 | 60,464 | ' | ||
Recorded investment [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 89 | [1] | 19,517 | [1] | ' | ' | ' |
Collectively evaluated for impairment | 5,245,916 | [1] | 4,999,314 | [1] | ' | ' | ' |
Total recorded investment | 5,246,005 | [1] | 5,018,831 | [1] | ' | ' | ' |
Loans held for investment [Member] | CRE construction loans [Member] | ' | ' | ' | ' | ' | ||
Allowance for loan losses [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 0 | 0 | ' | ' | ' | ||
Collectively evaluated for impairment | 1,000 | 739 | ' | ' | ' | ||
Total allowance for loan losses | 1,000 | 739 | 490 | 4,473 | ' | ||
Recorded investment [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 0 | [1] | 0 | [1] | ' | ' | ' |
Collectively evaluated for impairment | 60,840 | [1] | 49,474 | [1] | ' | ' | ' |
Total recorded investment | 60,840 | [1] | 49,474 | [1] | ' | ' | ' |
Loans held for investment [Member] | CRE loans [Member] | ' | ' | ' | ' | ' | ||
Allowance for loan losses [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 1 | 1 | ' | ' | ' | ||
Collectively evaluated for impairment | 19,265 | 27,545 | ' | ' | ' | ||
Total allowance for loan losses | 19,266 | 27,546 | 30,752 | 47,771 | ' | ||
Recorded investment [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 25,512 | [1] | 8,404 | [1] | ' | ' | ' |
Collectively evaluated for impairment | 1,257,534 | [1] | 928,046 | [1] | ' | ' | ' |
Total recorded investment | 1,283,046 | [1] | 936,450 | [1] | ' | ' | ' |
Loans held for investment [Member] | Residential mortgage loans [Member] | ' | ' | ' | ' | ' | ||
Allowance for loan losses [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 2,379 | 3,157 | ' | ' | ' | ||
Collectively evaluated for impairment | 16,747 | 22,981 | ' | ' | ' | ||
Total allowance for loan losses | 19,126 | 26,138 | 33,210 | 34,297 | ' | ||
Recorded investment [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 36,648 | [1] | 26,851 | [1] | ' | ' | ' |
Collectively evaluated for impairment | 1,709,002 | [1] | 1,665,135 | [1] | ' | ' | ' |
Total recorded investment | 1,745,650 | [1] | 1,691,986 | [1] | ' | ' | ' |
Loans held for investment [Member] | Consumer loans [Member] | ' | ' | ' | ' | ' | ||
Allowance for loan losses [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 0 | 0 | ' | ' | ' | ||
Collectively evaluated for impairment | 1,115 | 709 | ' | ' | ' | ||
Total allowance for loan losses | 1,115 | 709 | 20 | 56 | ' | ||
Recorded investment [Abstract] | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 0 | [1] | 0 | [1] | ' | ' | ' |
Collectively evaluated for impairment | 555,805 | [1] | 352,495 | [1] | ' | ' | ' |
Total recorded investment | $555,805 | [1] | $352,495 | [1] | ' | ' | ' |
[1] | Excludes any net unearned income and deferred expenses. |
PREPAID_EXPENSES_AND_OTHER_ASS2
PREPAID EXPENSES AND OTHER ASSETS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
Prepaid Expense and Other Assets [Abstract] | ' | ' | ||
Investments in company-owned life insurance | $244,921,000 | [1] | $188,631,000 | [1] |
Investment in FHLB stock | 12,125,000 | 13,192,000 | ||
Investmetn in FRB stock | 21,300,000 | 21,300,000 | ||
Prepaid expenses | 77,765,000 | 97,033,000 | ||
Low-income housing tax credit fund financing asset | 33,670,000 | [2] | 41,588,000 | [2] |
Indemnification asset | 171,135,000 | [3] | 197,898,000 | [3] |
Other assets | 50,509,000 | 45,924,000 | ||
Prepaid expenses and other assets | 611,425,000 | 605,566,000 | ||
Cumulative face value of company-owned life insurance policies | 785,100,000 | ' | ||
Amount of liability related to the Low-Income Housing Tax Credit Fund Financing Asset | $33,700,000 | $41,700,000 | ||
[1] | As of September 30, 2013, we own life insurance policies with a cumulative face value of $785.1 million. | |||
[2] | In a prior year, we sold an investment in a low-income housing tax credit fund and we guaranteed the return on investment to the purchaser. As a result of this guarantee obligation, we are the primary beneficiary of the fund (see Note 11 for further information regarding the consolidation of this fund) and we have accounted for this transaction as a financing. As a financing transaction, we continue to account for the asset transferred to the purchaser, and maintain a related liability corresponding to our obligations under the guarantee. As the benefits are delivered to the purchaser of the investment, this financing asset and the related liability decrease. A related financing liability in the amount of $33.7 million and $41.7 million is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2013 and 2012, respectively. See Note 20 for further discussion of our obligations under the guarantee. | |||
[3] | The indemnification asset primarily pertains to legal matters for which Regions has indemnified RJF in connection with our acquisition of Morgan Keegan. The liabilities related to such matters are included in trade and other payables on our Consolidated Statements of Financial Condition. See Notes 3 and 20 for additional information. |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Fund | ||||||
investor | ||||||
Assets: | ' | ' | ' | |||
Assets segregated pursuant to regulations and other segregated assets | $4,064,827 | [1] | $2,784,199 | [1] | ' | |
Investments in real estate partnerships held by consolidated variable interest entities | 272,096 | 299,611 | ' | |||
Prepaid expenses and other assets | 611,425 | 605,566 | ' | |||
Total assets | 23,186,122 | 21,160,265 | ' | |||
Liabilities and Equity: | ' | ' | ' | |||
Trade and other payables | 630,344 | 628,734 | ' | |||
Loans payable of consolidated variable interest entities | 62,938 | 81,713 | ' | |||
Total liabilities | 19,187,785 | 17,479,983 | ' | |||
Equity | 3,662,924 | 3,268,940 | ' | |||
Noncontrolling interests | 335,413 | 411,342 | ' | |||
Total equity | 3,998,337 | 3,680,282 | 2,911,845 | |||
Total liabilities and equity | 23,186,122 | 21,160,265 | ' | |||
Revenues: | ' | ' | ' | |||
Interest | 473,599 | 453,258 | 392,318 | |||
Other | 145,882 | 86,473 | 35,170 | |||
Total revenues | 4,595,798 | [2] | 3,897,900 | [2] | 3,399,886 | [2] |
Interest expense | 110,371 | 91,369 | 65,830 | |||
Net revenues (expense) | 4,485,427 | 3,806,531 | 3,334,056 | |||
Non-interest expenses | 3,891,517 | 3,338,610 | 2,883,311 | |||
Net loss including noncontrolling interests | 396,877 | 292,265 | 267,851 | |||
Net income (loss) attributable to noncontrolling interests | 29,723 | -3,604 | -10,502 | |||
Net income (loss) attributable to Raymond James Financial, Inc. | 367,154 | 295,869 | 278,353 | |||
Low-income housing tax credit funds [Abstract] | ' | ' | ' | |||
Number of low-income housing tax credit (LIHTC) funds | 84 | ' | ' | |||
Minimum number of investor members or limited partners of LIHTC Funds | 1 | ' | ' | |||
Number of low-income housing tax credit (LIHTC) funds determined to be VIE's | 75 | ' | ' | |||
Number of low-income housing tax credit (LIHTC) funds not determined to be VIE's | 9 | ' | ' | |||
Number of non-guaranteed tax credit funds | 74 | ' | ' | |||
Number of non-guaranteed LIHTC funds previously consolidated liquidated | 1 | ' | ' | |||
Number of guaranteed tax credit funds | 1 | ' | ' | |||
Number of tax credit funds consolidated but not determined to be VIE's | 4 | ' | ' | |||
Variable interest entities, not primary beneficiary [Abstract] | ' | ' | ' | |||
Number of new market tax credit funds, not primary beneficiary | 7 | ' | ' | |||
LIHTC Funds - Primary Beneficiary [Member] | ' | ' | ' | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 208,634 | [3] | 234,592 | [3] | ' | |
Aggregate liabilities | 78,055 | [3] | 97,217 | [3] | ' | |
Low-income housing tax credit funds [Abstract] | ' | ' | ' | |||
Number of non-guaranteed tax credit funds | 8 | ' | ' | |||
Guaranteed LIHTC Fund - Primary Beneficiary [Member] | ' | ' | ' | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 81,712 | [3],[4] | 85,332 | [3],[4] | ' | |
Aggregate liabilities | 0 | [3],[4] | 2,208 | [3],[4] | ' | |
Restricted Stock Trust Fund - Primary Beneficiary [Member] | ' | ' | ' | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 13,075 | [3] | 15,387 | [3] | ' | |
Aggregate liabilities | 6,710 | [3] | 7,508 | [3] | ' | |
EIF Funds - Primary Beneficiary [Member] | ' | ' | ' | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 7,588 | [3] | 15,736 | [3] | ' | |
Aggregate liabilities | 0 | [3] | 0 | [3] | ' | |
Total VIEs - Primary Beneficiary [Member] | ' | ' | ' | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 311,009 | [3] | 351,047 | [3] | ' | |
Aggregate liabilities | 84,765 | [3] | 106,933 | [3] | ' | |
Assets: | ' | ' | ' | |||
Assets segregated pursuant to regulations and other segregated assets | 11,857 | 14,230 | ' | |||
Receivables, other | 5,763 | 5,273 | ' | |||
Investments in real estate partnerships held by consolidated variable interest entities | 272,096 | 299,611 | ' | |||
Trust fund investment in RJF common stock | 13,073 | [5] | 15,387 | [5] | ' | |
Prepaid expenses and other assets | 8,230 | 16,297 | ' | |||
Total assets | 311,019 | 350,798 | ' | |||
Liabilities and Equity: | ' | ' | ' | |||
Trade and other payables | 1,428 | 2,804 | ' | |||
Intercompany payables | 6,390 | 8,603 | ' | |||
Loans payable of consolidated variable interest entities | 62,938 | [6] | 81,713 | [6] | ' | |
Total liabilities | 70,756 | 93,120 | ' | |||
Equity | 6,175 | 6,105 | ' | |||
Noncontrolling interests | 234,088 | 251,573 | ' | |||
Total equity | 240,263 | 257,678 | ' | |||
Total liabilities and equity | 311,019 | 350,798 | ' | |||
Revenues: | ' | ' | ' | |||
Interest | 4 | 3 | 2 | |||
Other | 3,538 | 3,944 | 5,385 | |||
Total revenues | 3,542 | 3,947 | 5,387 | |||
Interest expense | 3,959 | 5,032 | 6,049 | |||
Net revenues (expense) | -417 | -1,085 | -662 | |||
Non-interest expenses | 27,292 | 25,207 | 18,670 | |||
Net loss including noncontrolling interests | -27,709 | -26,292 | -19,332 | |||
Net income (loss) attributable to noncontrolling interests | -27,779 | -26,860 | -17,988 | |||
Net income (loss) attributable to Raymond James Financial, Inc. | 70 | 568 | -1,344 | |||
LIHTC Funds - Not Primary Beneficiary [Member] | ' | ' | ' | |||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 2,532,457 | 2,198,049 | ' | |||
Aggregate liabilities | 762,346 | 844,597 | ' | |||
Our risk of loss | 14,387 | 22,501 | ' | |||
NMTC Funds [Member] | ' | ' | ' | |||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 140,499 | 140,680 | ' | |||
Aggregate liabilities | 278 | 209 | ' | |||
Our risk of loss | 13 | 13 | ' | |||
Other Real Estate Limited Partnerships and LLCs - Not Primary Beneficiary [Member] | ' | ' | ' | |||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 30,240 | 31,107 | ' | |||
Aggregate liabilities | 35,512 | 35,512 | ' | |||
Our risk of loss | 212 | 1,145 | ' | |||
Total VIEs - Not Primary Beneficiary [Member] | ' | ' | ' | |||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 2,703,196 | 2,369,836 | ' | |||
Aggregate liabilities | 798,136 | 880,318 | ' | |||
Our risk of loss | 14,612 | 23,659 | ' | |||
Managed Funds [Member] | ' | ' | ' | |||
Variable interest entity, nonconsolidated, carrying amount of assets and liabilities [Abstract] | ' | ' | ' | |||
Aggregate assets | 56,321 | 9,700 | ' | |||
Aggregate liabilities | 1,415 | 1,689 | ' | |||
Our risk of loss | $202 | $296 | ' | |||
[1] | Consists of cash maintained in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934. RJ&A (and MK & Co. as of September 30, 2012) as broker-dealers carrying client accounts as of each respective date, are subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of their clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. | |||||
[2] | No individual client accounted for more than ten percent of total revenues in any of the years presented. | |||||
[3] | Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. | |||||
[4] | In connection with one of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has guaranteed the investor members’ return on their investment in the fund (the “Guaranteed LIHTC Fundâ€). See Note 10 for information regarding the financing asset associated with this fund, and see Note 20 for additional information regarding this commitment. | |||||
[5] | Included in treasury stock in our Consolidated Statements of Financial Condition. | |||||
[6] | Comprised of several non-recourse loans. We are not contingently liable under any of these loans (see Note 16 for additional information). |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $587,220 | $530,901 |
Less: Accumulated depreciation and amortization | -342,804 | -299,706 |
Property and equipment, net | 244,416 | 231,195 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 20,104 | 19,754 |
Construction in process [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 707 | 6,782 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 131,115 | 117,604 |
Buildings, leasehold and land improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 235,239 | 204,593 |
Furniture, fixtures, and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $200,055 | $182,168 |
GOODWILL_AND_IDENTIFIABLE_INTA2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Schedule of Goodwill and Net Identifiable Intangible Asset Balances (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 |
In Thousands, unless otherwise specified | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Goodwill | $295,486 | $295,486 | $300,111 | $71,924 |
Identifiable intangible assets, net | 65,978 | ' | 61,135 | ' |
Total goodwill and identifable intangible assets, net | $361,464 | ' | $361,246 | ' |
GOODWILL_AND_IDENTIFIABLE_INTA3
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Schedule of Goodwill (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2012 | ||
Goodwill [Roll Forward] | ' | ' | ' | ' | ||
Goodwill (beginning of the period) | $300,111 | $71,924 | ' | $295,486 | ||
Additions | ' | 228,187 | [1] | ' | ' | |
Goodwill, adjustments to prior year additions | 2,308 | [2] | ' | ' | ' | |
Impairment losses | -6,933 | [3] | 0 | 0 | ' | |
Goodwill (end of the period) | 295,486 | 300,111 | 71,924 | 295,486 | ||
Private Client Group [Member] | ' | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ' | ||
Goodwill (beginning of the period) | ' | 48,097 | ' | 174,584 | ||
Additions | ' | 125,220 | [1] | ' | ' | |
Goodwill, adjustments to prior year additions | 1,267 | [2] | ' | ' | ' | |
Impairment losses | 0 | [3] | 0 | ' | ' | |
Goodwill (end of the period) | ' | ' | ' | 174,584 | ||
Capital Markets [Member] | ' | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ' | ||
Goodwill (beginning of the period) | ' | 23,827 | ' | 120,902 | ||
Additions | ' | 102,967 | [1] | ' | ' | |
Goodwill, adjustments to prior year additions | 1,041 | [2] | ' | ' | ' | |
Impairment losses | -6,933 | [3] | 0 | ' | ' | |
Goodwill (end of the period) | 6,900 | ' | ' | 120,902 | ||
Capital Markets [Member] | Portion attributable to RJF pre-tax income [Member] | ' | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ' | ||
Impairment losses | -4,600 | ' | ' | ' | ||
Capital Markets [Member] | Portion attributable to non-controllling interests [Member] | ' | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ' | ||
Impairment losses | -2,300 | ' | ' | ' | ||
Operating Segments [Member] | Private Client Group [Member] | ' | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ' | ||
Goodwill (end of the period) | 174,584 | 173,317 | ' | ' | ||
Operating Segments [Member] | Capital Markets [Member] | ' | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ' | ||
Goodwill (end of the period) | $120,902 | $126,794 | ' | ' | ||
[1] | Additions are directly attributable to the acquisition of Morgan Keegan (see Notes 1 and 3 for additional information). | |||||
[2] | The goodwill adjustment arose during the quarter ended December 31, 2012 from a change in a tax election pertaining to whether assets acquired and liabilities assumed are written-up to fair value for tax purposes. This election is made on an entity-by-entity basis, and during the period indicated, our assumption regarding whether we would make such election changed for one of the Morgan Keegan entities we acquired. The offsetting balance associated with this adjustment to goodwill was the net deferred tax asset. | |||||
[3] | The impairment expense in the year ended September 30, 2013 is associated with the RJES reporting unit. We concluded the goodwill associated with this reporting unit to be completely impaired during the quarter ended March 31, 2013. Since we did not own 100% of RJES as of the goodwill impairment testing date, for the year ended September 30, 2013 the effect of this impairment expense on the pre-tax income attributable to Raymond James Financial, Inc. is approximately $4.6 million and the portion of the impairment expense attributable to the noncontrolling interests is approximately $2.3 million. |
GOODWILL_AND_IDENTIFIABLE_INTA4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Quantitative Analysis of Goodwill (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2012 | ||
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | $295,486,000 | $300,111,000 | $71,924,000 | $295,486,000 | |
Impairment losses | -6,933,000 | [1] | 0 | 0 | ' |
Private Client Group [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | ' | ' | 48,097,000 | 174,584,000 | |
Impairment losses | 0 | [1] | 0 | ' | ' |
Private Client Group [Member] | Morgan Keegan and Company Inc [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | ' | ' | ' | 126,486,000 | |
Key Assumptions Used in Quantitative Analysis [Abstract] | ' | ' | ' | ' | |
Discount rate used in the income approach | ' | ' | ' | 14.00% | |
Multiple applied to revenue in the market approach | ' | ' | ' | 0.5 | |
Multiple applied to EPS in the market approach | ' | ' | ' | 10 | |
Weight assigned to the outcome of [Abstract] | ' | ' | ' | ' | |
Income approach | ' | ' | ' | 50.00% | |
Market approach | ' | ' | ' | 50.00% | |
Private Client Group [Member] | Raymond James and Associates Inc [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | ' | ' | ' | 31,954,000 | |
Key Assumptions Used in Quantitative Analysis [Abstract] | ' | ' | ' | ' | |
Discount rate used in the income approach | ' | ' | ' | 13.00% | |
Multiple applied to revenue in the market approach | ' | ' | ' | 0.5 | |
Multiple applied to EPS in the market approach | ' | ' | ' | 13.5 | |
Weight assigned to the outcome of [Abstract] | ' | ' | ' | ' | |
Income approach | ' | ' | ' | 50.00% | |
Market approach | ' | ' | ' | 50.00% | |
Private Client Group [Member] | Raymond James Ltd [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | ' | ' | ' | 16,144,000 | |
Key Assumptions Used in Quantitative Analysis [Abstract] | ' | ' | ' | ' | |
Discount rate used in the income approach | ' | ' | ' | 18.00% | |
Multiple applied to revenue in the market approach | ' | ' | ' | 1 | |
Multiple applied to EPS in the market approach | ' | ' | ' | 12 | |
Weight assigned to the outcome of [Abstract] | ' | ' | ' | ' | |
Income approach | ' | ' | ' | 50.00% | |
Market approach | ' | ' | ' | 50.00% | |
Capital Markets [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | 6,900,000 | ' | 23,827,000 | 120,902,000 | |
Impairment losses | -6,933,000 | [1] | 0 | ' | ' |
Capital Markets [Member] | Morgan Keegan and Company Inc [Member] | Fixed Income [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | ' | ' | ' | 13,646,000 | |
Key Assumptions Used in Quantitative Analysis [Abstract] | ' | ' | ' | ' | |
Discount rate used in the income approach | ' | ' | ' | 16.00% | |
Multiple applied to revenue in the market approach | ' | ' | ' | 0.9 | |
Multiple applied to EPS in the market approach | ' | ' | ' | 8 | |
Weight assigned to the outcome of [Abstract] | ' | ' | ' | ' | |
Income approach | ' | ' | ' | 50.00% | |
Market approach | ' | ' | ' | 50.00% | |
Capital Markets [Member] | Raymond James and Associates Inc [Member] | Fixed Income [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | ' | ' | ' | 77,325,000 | |
Key Assumptions Used in Quantitative Analysis [Abstract] | ' | ' | ' | ' | |
Discount rate used in the income approach | ' | ' | ' | 14.00% | |
Multiple applied to revenue in the market approach | ' | ' | ' | 1 | |
Multiple applied to EPS in the market approach | ' | ' | ' | 9 | |
Weight assigned to the outcome of [Abstract] | ' | ' | ' | ' | |
Income approach | ' | ' | ' | 50.00% | |
Market approach | ' | ' | ' | 50.00% | |
Capital Markets [Member] | Raymond James and Associates Inc [Member] | Equity Capital Markets [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | ' | ' | ' | 13,038,000 | |
Key Assumptions Used in Quantitative Analysis [Abstract] | ' | ' | ' | ' | |
Discount rate used in the income approach | ' | ' | ' | 15.00% | |
Multiple applied to revenue in the market approach | ' | ' | ' | 0.3 | |
Multiple applied to EPS in the market approach | ' | ' | ' | 7 | |
Weight assigned to the outcome of [Abstract] | ' | ' | ' | ' | |
Income approach | ' | ' | ' | 50.00% | |
Market approach | ' | ' | ' | 50.00% | |
Capital Markets [Member] | Raymond James Ltd [Member] | Equity Capital Markets [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Goodwill | ' | ' | ' | 16,893,000 | |
Key Assumptions Used in Quantitative Analysis [Abstract] | ' | ' | ' | ' | |
Discount rate used in the income approach | ' | ' | ' | 20.00% | |
Multiple applied to revenue in the market approach | ' | ' | ' | 1.1 | |
Multiple applied to EPS in the market approach | ' | ' | ' | 11 | |
Weight assigned to the outcome of [Abstract] | ' | ' | ' | ' | |
Income approach | ' | ' | ' | 50.00% | |
Market approach | ' | ' | ' | 50.00% | |
Portion attributable to RJF pre-tax income [Member] | Capital Markets [Member] | ' | ' | ' | ' | |
Goodwill [Abstract] | ' | ' | ' | ' | |
Impairment losses | ($4,600,000) | ' | ' | ' | |
[1] | The impairment expense in the year ended September 30, 2013 is associated with the RJES reporting unit. We concluded the goodwill associated with this reporting unit to be completely impaired during the quarter ended March 31, 2013. Since we did not own 100% of RJES as of the goodwill impairment testing date, for the year ended September 30, 2013 the effect of this impairment expense on the pre-tax income attributable to Raymond James Financial, Inc. is approximately $4.6 million and the portion of the impairment expense attributable to the noncontrolling interests is approximately $2.3 million. |
GOODWILL_AND_IDENTIFIABLE_INTA5
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Net Amortizable Intangible Assets (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 24, 2012 | ||
Finite-lived Intangible Assets [Roll Forward] | ' | ' | ' | ' | ||
Amortizable net intangible assets (beginning of the period) | $61,135 | $1,043 | $2,416 | ' | ||
Additions | 14,414 | 65,000 | [1] | 0 | ' | |
Amortization expense | -9,571 | -4,908 | -1,373 | ' | ||
Impairment losses | 0 | 0 | 0 | ' | ||
Amortizable net intangible assets (end of the period) | 65,978 | 61,135 | 1,043 | ' | ||
Private Client Group [Member] | ' | ' | ' | ' | ||
Finite-lived Intangible Assets [Roll Forward] | ' | ' | ' | ' | ||
Amortizable net intangible assets (beginning of the period) | 9,829 | 210 | 397 | ' | ||
Additions | 0 | 10,000 | [1] | 0 | ' | |
Amortization expense | -638 | -381 | -187 | ' | ||
Impairment losses | 0 | 0 | 0 | ' | ||
Amortizable net intangible assets (end of the period) | 9,191 | 9,829 | 210 | ' | ||
Capital Markets [Member] | ' | ' | ' | ' | ||
Finite-lived Intangible Assets [Roll Forward] | ' | ' | ' | ' | ||
Amortizable net intangible assets (beginning of the period) | 51,306 | 833 | 2,019 | ' | ||
Additions | 0 | 55,000 | [1] | 0 | ' | |
Amortization expense | -7,832 | -4,527 | -1,186 | ' | ||
Impairment losses | 0 | 0 | 0 | ' | ||
Amortizable net intangible assets (end of the period) | 43,474 | 51,306 | 833 | ' | ||
Asset Management [Member] | ' | ' | ' | ' | ||
Finite-lived Intangible Assets [Roll Forward] | ' | ' | ' | ' | ||
Amortizable net intangible assets (beginning of the period) | 0 | 0 | 0 | ' | ||
Additions | 13,329 | [2] | 0 | [1] | 0 | ' |
Amortization expense | -1,000 | 0 | 0 | ' | ||
Impairment losses | 0 | 0 | 0 | ' | ||
Amortizable net intangible assets (end of the period) | 12,329 | 0 | 0 | ' | ||
Useful life | '10 years | ' | ' | ' | ||
Business Combinations [Abstract] | ' | ' | ' | ' | ||
Business acquisition, acquired interest (as a percentage) | ' | ' | ' | 45.00% | ||
Portion of ClariVest attributable to others | ' | ' | ' | 55.00% | ||
RJ Bank [Member] | ' | ' | ' | ' | ||
Finite-lived Intangible Assets [Roll Forward] | ' | ' | ' | ' | ||
Amortizable net intangible assets (beginning of the period) | 0 | 0 | 0 | ' | ||
Additions | 1,085 | [3] | 0 | [1] | 0 | ' |
Amortization expense | -101 | 0 | 0 | ' | ||
Impairment losses | 0 | 0 | 0 | ' | ||
Amortizable net intangible assets (end of the period) | $984 | $0 | $0 | ' | ||
Useful life | '10 years | ' | ' | ' | ||
[1] | The additions are directly attributable to the identified intangible assets associated with the Morgan Keegan acquisition, see Note 3 for further information regarding the acquisition. | |||||
[2] | The additions are directly attributable to the customer list asset associated with our first quarter fiscal year 2013 acquisition of a 45% interest in ClariVest (see Note 3 for additional information). Since we are consolidating ClariVest, the amount represents the entire customer relationship intangible asset associated with the acquisition transaction; the amount shown is unadjusted by the 55% share of ClariVest attributable to others. The estimated useful life associated with this addition is approximately 10 years | |||||
[3] | The additions are the result of mortgage servicing rights held by RJ Bank. |
GOODWILL_AND_IDENTIFIABLE_INTA6
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Intangible Assets, by Type (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | $81,042 | $66,628 |
Accumulated amortization | -15,064 | -5,493 |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 65,957 | 52,628 |
Accumulated amortization | -8,663 | -3,060 |
Trade name [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 2,000 | 2,000 |
Accumulated amortization | -2,000 | -1,000 |
Developed technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 11,000 | 11,000 |
Accumulated amortization | -3,300 | -1,100 |
Non-compete agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 1,000 | 1,000 |
Accumulated amortization | -1,000 | -333 |
Mortgage servicing rights[Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 1,085 | 0 |
Accumulated amortization | ($101) | $0 |
GOODWILL_AND_IDENTIFIABLE_INTA7
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Projected Amortization Expense (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 |
In Thousands, unless otherwise specified | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
2014 | $7,517 | ' | ' | ' |
2015 | 7,427 | ' | ' | ' |
2016 | 7,251 | ' | ' | ' |
2017 | 6,144 | ' | ' | ' |
2018 | 5,037 | ' | ' | ' |
Thereafter | 32,602 | ' | ' | ' |
Total future amortization expense | $65,978 | $61,135 | $1,043 | $2,416 |
BANK_DEPOSITS_Details
BANK DEPOSITS (Details) (USD $) | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Bank deposits: | ' | ' | ' | ||
NOW accounts | $7,003,000 | $4,588,000 | ' | ||
Demand deposits (non-interest bearing) | 8,555,000 | 44,800,000 | ' | ||
Savings and money market accounts | 8,966,439,000 | 8,231,446,000 | ' | ||
Certificates of deposit | 313,374,000 | 318,879,000 | ' | ||
Total bank deposits | 9,295,371,000 | [1] | 8,599,713,000 | [1] | ' |
Affiliate bank deposits excluded from total bank deposits | 6,000,000 | 1,000,000 | ' | ||
Weighted-average rate [Abstract] | ' | ' | ' | ||
NOW accounts, weighted-average rate (in hundredths) | 0.01% | [2] | 0.01% | [2] | ' |
Demand deposits (non-interest-bearing), weighted-average rate (in hundredths) | 0.00% | [2] | 0.00% | [2] | ' |
Savings and money market accounts, weighted-average rate (in hundredths) | 0.02% | [2] | 0.04% | [2] | ' |
Certificates of deposit, weighted-average rate (in hundredths) | 1.96% | [2] | 2.13% | [2] | ' |
Total bank deposits, weighted-average rate (in hundredths) | 0.09% | [1],[2] | 0.12% | [1],[2] | ' |
Scheduled maturities of certificates of deposit, denominations greater than or equal to $100,000 [Abstract] | ' | ' | ' | ||
Three months or less | 7,343,000 | 9,069,000 | ' | ||
Over three through six months | 5,908,000 | 4,587,000 | ' | ||
Over six through twelve months | 9,459,000 | 12,414,000 | ' | ||
Over one through two years | 31,123,000 | 16,989,000 | ' | ||
Over two through three years | 33,404,000 | 32,043,000 | ' | ||
Over three through four years | 47,822,000 | 34,533,000 | ' | ||
Over four through five years | 36,574,000 | 50,647,000 | ' | ||
Total certificates of deposit, denominations greater than or equal to 100,000 | 171,633,000 | 160,282,000 | ' | ||
Scheduled maturities of certificates of deposit, denominations less than 100,000 [Abstract] | ' | ' | ' | ||
Three months or less | 8,540,000 | 7,195,000 | ' | ||
Over three through six months | 6,264,000 | 6,778,000 | ' | ||
Over six through twelve months | 13,976,000 | 16,339,000 | ' | ||
Over one through two years | 37,918,000 | 23,920,000 | ' | ||
Over two through three years | 27,873,000 | 38,074,000 | ' | ||
Over three through four years | 35,270,000 | 28,807,000 | ' | ||
Over four through five years | 11,900,000 | 37,484,000 | ' | ||
Total certificates of deposit, denominations less than 100,000 | 141,741,000 | 158,597,000 | ' | ||
Interest expense on deposits [Abstract] | ' | ' | ' | ||
Certificates of deposit | 6,239,000 | 6,501,000 | 6,228,000 | ||
Money market, savings and NOW accounts | 2,793,000 | 2,983,000 | 6,315,000 | ||
Total interest expense on deposits | $9,032,000 | $9,484,000 | $12,543,000 | ||
[1] | Bank deposits exclude affiliate deposits of approximately $6 million and $1 million at September 30, 2013 and 2012, respectively. | ||||
[2] | Weighted-average rate calculation is based on the actual deposit balances at September 30, 2013 and 2012, respectively. |
OTHER_BORROWINGS_Details
OTHER BORROWINGS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | ||||
United States [Member] | United States [Member] | Canada [Member] | Secured Debt [Member] | Secured Debt [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | FHLB advances [Member] | FHLB advances [Member] | New Regions Credit Agreement [Member] | |||||||
Minimum [Member] | Maximum [Member] | Secured Debt [Member] | ||||||||||||||
Other Borrowings [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Borrowings outstanding on lines of credit | ' | ' | ' | ' | ' | $84,076,000 | [1] | $0 | [1] | $0 | [2] | $0 | [2] | $0 | $0 | $5,000,000 |
Total other borrowings | 84,076,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revolving credit agreement maximum borrowing capacity (expressed as a percentage of the value of the pledged securities) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ||||
Revolving credit agreement maximum borrowing capacity (expressed as as a dollar amount of the pledged securities) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ||||
Revolving credit agreement maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ||||
Revolving credit agreement basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ||||
Revolving credit agreement expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Apr-15 | ||||
Revolving credit agreements, interest rates during the year | ' | ' | 0.21% | 2.25% | 2.25% | ' | ' | ' | ' | ' | ' | ' | ||||
Securities Sold under Agreements to Repurchase [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Securities sold under agreements to repurchase | $300,933,000 | $348,036,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Other than a $5 million borrowing outstanding on the New Regions Credit Agreement (as hereinafter defined) as of September 30, 2013, any borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities.On November 14, 2012, a subsidiary of RJF (the “Borrowerâ€) entered into a Revolving Credit Agreement (the “New Regions Credit Agreementâ€) with Regions Bank, an Alabama banking corporation (the “Lenderâ€). The New Regions Credit Agreement provides for a revolving line of credit from the Lender to the Borrower and is subject to a guarantee in favor of the Lender provided by RJF. The proceeds from any borrowings under the line will be used for working capital and general corporate purposes. The obligations under the New Regions Credit Agreement are secured by, subject to certain exceptions, all of the present and future ARS owned by the Borrower (the “Pledged ARSâ€). The amount of any borrowing under the New Regions Credit Agreement cannot exceed the lesser of 70% of the value of the Pledged ARS, or $100 million. The maximum amount available to borrow under the New Regions Credit Agreement was $100 million as of September 30, 2013, the outstanding borrowings were $5 million on such date. The New Regions Credit Agreement bears interest at a variable rate which is 2.75% in excess of LIBOR. The New Regions Credit Agreement expires on April 2, 2015. Immediately preceding the execution of the New Regions Credit Agreement, all outstanding balances on the credit agreement which had been entered into with Regions on April 2, 2012 as a result of the Morgan Keegan acquisition (the “Initial Regions Credit Agreementâ€) were paid to the Lender by the Borrowers and such agreement was terminated. See Note 17 for further discussion. | |||||||||||||||
[2] | Any borrowings on unsecured lines of credit are day-to-day and are generally utilized for cash management purposes. |
LOANS_PAYABLE_OF_CONSOLIDATED_2
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES [Abstract] | ' | ' |
Imputed interest rates, minimum (in hundredths) | 5.17% | ' |
Imputed interest rates, maximum (in hundredths) | 6.38% | ' |
Maturity date range, start | 2-Jan-15 | ' |
Maturity date range, end | 2-Jan-19 | ' |
Loans Payable [Abstract] | ' | ' |
Current portion of loans payable | $19,061 | $18,775 |
Long-term portion of loans payable | 43,877 | 62,938 |
Total loans payable | 62,938 | 81,713 |
Contractual maturities of loans of consolidated variable interest entities [Abstract] | ' | ' |
Fiscal 2014 | 19,061 | ' |
Fiscal 2015 | 17,949 | ' |
Fiscal 2016 | 13,331 | ' |
Fiscal 2017 | 8,240 | ' |
Fiscal 2018 | 3,668 | ' |
Thereafter | 689 | ' |
Total loans payable | $62,938 | $81,713 |
CORPORATE_DEBT_Details
CORPORATE DEBT (Details) (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | |||
Debt Instrument [Line Items] | ' | ' | ||
Corporate debt | $1,194,508,000 | $1,329,093,000 | ||
Contractual maturitites of corporate debt [Abstract] | ' | ' | ||
Fiscal 2014 | 3,530,000 | ' | ||
Fiscal 2015 | 4,067,000 | ' | ||
Fiscal 2016 | 254,050,000 | ' | ||
Fiscal 2017 | 4,556,000 | ' | ||
Fiscal 2018 | 4,823,000 | ' | ||
Thereafter | 923,482,000 | ' | ||
Total | 1,194,508,000 | 1,329,093,000 | ||
Mortgages [Member] | 5.70% mortgage notes payable on our headquarters office complex, due 2023 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Corporate debt | 45,662,000 | [1] | 49,309,000 | [1] |
Book value of collateral securing debt | 53,500,000 | ' | ||
Interest rate (in hundredths) | 5.70% | ' | ||
Maturity date | 1-Jan-23 | ' | ||
Contractual maturitites of corporate debt [Abstract] | ' | ' | ||
Total | 45,662,000 | [1] | 49,309,000 | [1] |
Senior Notes [Member] | 4.25% senior notes, due 2016 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Corporate debt | 249,745,000 | [2] | 249,645,000 | [2] |
Interest rate (in hundredths) | 4.25% | ' | ||
Maturity date | 1-Apr-16 | ' | ||
Unamortized discount | 255,000 | 355,000 | ||
Aggregate principal amount of the notes redeemed | 250,000,000 | ' | ||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | ' | ||
Basis spread used in determining redemption price (in basis points) | 30 | ' | ||
Contractual maturitites of corporate debt [Abstract] | ' | ' | ||
Total | 249,745,000 | [2] | 249,645,000 | [2] |
Senior Notes [Member] | 8.60% senior notes, due 2019 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Corporate debt | 299,970,000 | [3] | 299,965,000 | [3] |
Interest rate (in hundredths) | 8.60% | ' | ||
Maturity date | 1-Aug-19 | ' | ||
Unamortized discount | 30,000 | 35,000 | ||
Aggregate principal amount of the notes redeemed | 300,000,000 | ' | ||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | ' | ||
Basis spread used in determining redemption price (in basis points) | 50 | ' | ||
Contractual maturitites of corporate debt [Abstract] | ' | ' | ||
Total | 299,970,000 | [3] | 299,965,000 | [3] |
Senior Notes [Member] | 5.625% senior notes, due 2024 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Corporate debt | 249,131,000 | [4] | 249,048,000 | [4] |
Interest rate (in hundredths) | 5.63% | ' | ||
Maturity date | 1-Apr-24 | ' | ||
Unamortized discount | 869,000 | 952,000 | ||
Aggregate principal amount of the notes redeemed | 250,000,000 | ' | ||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | ' | ||
Basis spread used in determining redemption price (in basis points) | 50 | ' | ||
Contractual maturitites of corporate debt [Abstract] | ' | ' | ||
Total | 249,131,000 | [4] | 249,048,000 | [4] |
Senior Notes [Member] | 6.90% senior notes, due 2042 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Corporate debt | 350,000,000 | [5] | 350,000,000 | [5] |
Interest rate (in hundredths) | 6.90% | [6] | ' | |
Maturity date | 1-Mar-42 | ' | ||
Unamortized discount | 0 | 0 | ||
Aggregate principal amount of the notes redeemed | 350,000,000 | [6] | ' | |
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | [6] | ' | |
Contractual maturitites of corporate debt [Abstract] | ' | ' | ||
Total | 350,000,000 | [5] | 350,000,000 | [5] |
Notes Payable to Banks [Member] | Other borrowings from banks [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Corporate debt | 0 | [7] | 128,256,000 | [7] |
Contractual maturitites of corporate debt [Abstract] | ' | ' | ||
Total | 0 | [7] | 128,256,000 | [7] |
Notes Payable to Banks [Member] | RJES term loan [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Corporate debt | 0 | [6] | 2,870,000 | [6] |
Contractual maturitites of corporate debt [Abstract] | ' | ' | ||
Total | $0 | [6] | $2,870,000 | [6] |
[1] | Mortgage notes payable pertain to mortgage loans on our headquarters office complex. These mortgage loans are secured by land, buildings, and improvements with a net book value of $53.5 million at September 30, 2013. These mortgage loans bear interest at 5.7% with repayment terms of monthly interest and principal debt service and have a January 2023 maturity. | |||
[2] | In April 2011, we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 4.25% senior notes due April 2016. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 30 basis points, plus accrued and unpaid interest thereon to the redemption date | |||
[3] | In August 2009, we sold in a registered underwritten public offering, $300 million in aggregate principal amount of 8.60% senior notes due August 2019. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i)Â 100% of the principal amount of the notes redeemed, or (ii)Â the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points, plus accrued and unpaid interest thereon to the redemption date. | |||
[4] | In March 2012, we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 5.625% senior notes due April 2024. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i)Â 100% of the principal amount of the notes redeemed, or (ii)Â the sum of the present values of the remaining scheduled payments of principal and interest thereon, discounted to the redemption date at a discount rate equal to a designated U.S. Treasury rate, plus 50 basis points, plus accrued and unpaid interest thereon to the redemption date. | |||
[5] | In March 2012, we sold in a registered underwritten public offering, $350 million in aggregate principal amount of 6.90% senior notes due March 2042. Interest on these senior notes is payable quarterly in arrears. On or after March 15, 2017, we may redeem some or all of the senior notes at any time at the redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued interest thereon to the redemption date. | |||
[6] | The RJES term loan was paid in full in June 2013 | |||
[7] | The outstanding balance as of September 30, 2012, was comprised of the Initial Regions Credit Agreement. On November 14, 2012, the outstanding balance was repaid, the Initial Regions Credit Agreement was terminated and the New Regions Credit Agreement was executed (see Note 15 for additional information on the New Regions Credit Agreement secured line of credit). |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative [Line Items] | ' | ' |
Receivable for uncollectible derivative transaction revenues | $8,000,000 | $9,000,000 |
Maximum loss exposure on interest rate derivatives | 29,000,000 | ' |
Derivative asset position [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Cash collateral included in net fair value of all open derivative positions, aggregate net liability | -13,000,000 | -18,000,000 |
Derivative liability position [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Cash collateral included in the net fair value of all open derivatve liability positions, net aggregated asset | -22,000,000 | -50,000,000 |
RJ Bank [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maximum loss exposure under forward foreign exchange contracts | $700,000 | ' |
OTC Derivatives [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Number of derivatives designated as fair value hedges | 0 | ' |
Number of derivatives designated as cash flow hedges | 0 | ' |
Matched Book Derivatives [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Number of derivatives designated as fair value hedges | 0 | ' |
Number of derivatives designated as cash flow hedges | 0 | ' |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS, Balance Sheet Location (Details) (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | |||
Forward foreign exchange [Member] | ' | ' | ||
Liabilities derviatives [Abstract] | ' | ' | ||
Net gains (losses) recognized on forward foreign exchange derivatives | $14,000,000 | ($10,000,000) | ||
Hedge ineffectiveness | 0 | 0 | ||
Components of derivative gain (loss) excluded from the assessment of hedge effectiveness | 0 | 0 | ||
Designated as hedging instruments [Member] | Forward foreign exchange [Member] | Trade and other payables [Member] | ' | ' | ||
Liabilities derviatives [Abstract] | ' | ' | ||
Notional amount | 655,828,000 | 569,790,000 | ||
Fair value | 637,000 | [1] | 1,296,000 | [1] |
Derivatives not designated as hedging instruments [Member] | Forward foreign exchange [Member] | Trade and other payables [Member] | ' | ' | ||
Liabilities derviatives [Abstract] | ' | ' | ||
Notional amount | 79,588,000 | 44,225,000 | ||
Fair value | 77,000 | [1] | 74,000 | [1] |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Trading instruments [Member] | ' | ' | ||
Asset derivatives [Abstract] | ' | ' | ||
Notional amount | 2,407,387,000 | [2] | 2,376,049,000 | [2] |
Fair value | 89,633,000 | [1],[2] | 144,259,000 | [1],[2] |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Matched Book Derivatives [Member] | ' | ' | ||
Asset derivatives [Abstract] | ' | ' | ||
Notional amount | 1,944,408,000 | [3] | 2,110,984,000 | [3] |
Fair value | 250,341,000 | [1],[3] | 458,265,000 | [1],[3] |
Liabilities derviatives [Abstract] | ' | ' | ||
Notional amount | 1,944,408,000 | [3] | 2,110,984,000 | [3] |
Fair value | 250,341,000 | [1],[3] | 458,265,000 | [1],[3] |
Derivatives not designated as hedging instruments [Member] | Interest rate contracts [Member] | Trading instruments sold [Member] | ' | ' | ||
Liabilities derviatives [Abstract] | ' | ' | ||
Notional amount | 2,420,531,000 | [2] | 2,288,450,000 | [2] |
Fair value | $74,920,000 | [1],[2] | $128,081,000 | [1],[2] |
[1] | The fair value in this table is presented on a gross basis before netting of cash collateral and before any netting by counterparty according to our legally enforceable master netting arrangements. The fair value in the Consolidated Statements of Financial Condition is presented net. | |||
[2] | These contracts arise from our OTC Derivatives Operations | |||
[3] | These contracts arise from our Offsetting Matched Book Derivatives Operations. |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS, Income Statement Location (Details) (Derivatives not designated as hedging instruments [Member], USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Net trading profits [Member] | Interest rate contracts [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of gain (loss) on derivatives recognized in Income | $993 | [1] | ($116) | [1] | $750 | [1] |
Other revenues [Member] | Interest rate contracts [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of gain (loss) on derivatives recognized in Income | 225 | [2] | 835 | [2] | 0 | [2] |
Other revenues [Member] | Forward foreign exchange [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of gain (loss) on derivatives recognized in Income | $1,577 | ($591) | $0 | |||
[1] | These contracts arise from our OTC Derivatives Operations. | |||||
[2] | These contracts arise from our Offsetting Matched Book Derivatives Operations. |
DERIVATIVE_FINANCIAL_INSTRUMEN5
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS, Risk (Details) (USD $) | Sep. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Debt, minimum number of agencies required to maintain an investment grade rating | 1 |
Deriviatve in liability position fair value | $5,000,000 |
Derivative in liability position posted collateral | 4,200,000 |
Derivative in liability position additional collateral posted if contingent features are triggered | $800,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||||
Recorded in: | ' | ' | ' | |||
Provision for income taxes | $197,033,000 | $175,656,000 | $182,894,000 | |||
Equity, for compensation expense for tax purposes (in excess of) less than amounts recognized for financial reporting purposes | -2,590,000 | -2,613,000 | 374,000 | |||
Equity, for cumulative currency translation adjustments | 6,861,000 | -5,741,000 | 0 | |||
Equity, for available for sale securities | 8,986,000 | 7,611,000 | 1,497,000 | |||
Total | 210,290,000 | 174,913,000 | 184,765,000 | |||
Current: | ' | ' | ' | |||
Federal | 182,862,000 | 133,890,000 | 148,266,000 | |||
State and local | 37,491,000 | 29,141,000 | 29,387,000 | |||
Foreign | 8,469,000 | 10,581,000 | 11,249,000 | |||
Current provision (benefit) for income taxes | 228,822,000 | 173,612,000 | 188,902,000 | |||
Deferred: | ' | ' | ' | |||
Federal | -25,673,000 | 3,939,000 | -6,279,000 | |||
State and local | -5,023,000 | 372,000 | -3,887,000 | |||
Foreign | -1,093,000 | -2,267,000 | 4,158,000 | |||
Deferred provision (benefit) for income taxes | -31,789,000 | 2,044,000 | -6,008,000 | |||
Provision for income taxes | 197,033,000 | 175,656,000 | 182,894,000 | |||
Income tax reconciliation [Abstract] | ' | ' | ' | |||
Provision calculated at statutory rates | 197,466,000 | 165,034,000 | 161,436,000 | |||
State income taxes, net of federal benefit | 21,662,000 | 19,566,000 | 16,575,000 | |||
Tax-exempt interest income | -2,074,000 | -2,291,000 | -1,761,000 | |||
(Income)/loss on company-owned life insurance which is not subject to tax | -7,809,000 | -8,318,000 | 1,146,000 | |||
Business tax credits including low income housing tax credits | -1,056,000 | -1,830,000 | -3,443,000 | |||
Business expenses which are not tax-deductible | 4,920,000 | 3,752,000 | 3,072,000 | |||
Incentive stock option expenses which are not tax-deductible | 2,471,000 | 2,843,000 | 2,633,000 | |||
Reversal of deferred taxes provided on foreign earnings | -10,676,000 | [1] | 0 | [1] | 0 | [1] |
Other, net | -7,871,000 | -3,100,000 | 3,236,000 | |||
Effective income tax rate reconciliation [Abstract] | ' | ' | ' | |||
Provision calculated at statutory rate | 35.00% | 35.00% | 35.00% | |||
State income tax, net of federal benefit | 3.80% | 4.10% | 3.60% | |||
Tax-exempt interest income | -0.40% | -0.50% | -0.40% | |||
(Income)/loss on COLI which are not subject to tax | -1.30% | -1.80% | 0.20% | |||
Business tax credits including low income housing tax credits | -0.20% | -0.40% | -0.70% | |||
Business expenses which are not tax-deductible | 0.90% | 0.80% | 0.70% | |||
Incentive stock option expenses which are not tax-deductible | 0.40% | 0.60% | 0.60% | |||
Reversal of deferred taxes provided on foreign earnings | -1.90% | [1] | 0.00% | [1] | 0.00% | [1] |
Other, net | -1.40% | -0.70% | 0.70% | |||
Total provision for income tax | 34.90% | 37.30% | 39.70% | |||
U.S. and foreign components of income before income taxes [Abstract] | ' | ' | ' | |||
U.S. | 550,113,000 | 456,175,000 | 421,662,000 | |||
Foreign | 14,074,000 | 15,350,000 | 39,585,000 | |||
Income excluding noncontrolling interest and before provision for income taxes | 564,187,000 | 471,525,000 | 461,247,000 | |||
Deferred tax assets: | ' | ' | ' | |||
Deferred compensation | 128,801,000 | 87,666,000 | ' | |||
Allowances for loan losses and reserves for unfunded commitments | 55,659,000 | 60,779,000 | ' | |||
Unrealized loss associated with certain available for sale securities | 15,437,000 | 16,324,000 | ' | |||
Accrued expenses | 28,868,000 | 18,759,000 | ' | |||
Acquisition expense | 3,618,000 | 3,802,000 | ' | |||
Net operating loss and credit carryforwards | 1,336,000 | 4,390,000 | ' | |||
Other | 14,572,000 | 21,637,000 | ' | |||
Total gross deferred tax assets | 248,291,000 | 213,357,000 | ' | |||
Less: valuation allowance | -9,000 | -9,000 | ' | |||
Total deferred tax assets | 248,282,000 | 213,348,000 | ' | |||
Deferred tax liabilities: | ' | ' | ' | |||
Partnership Investments | -24,245,000 | -11,579,000 | ' | |||
Goodwill and other intangibles | -12,469,000 | -6,467,000 | ' | |||
Undistributed earnings of foreign subsidiaries | -9,344,000 | -19,373,000 | ' | |||
Fixed assets | -5,082,000 | -2,275,000 | ' | |||
Leveraged lease | 0 | -4,668,000 | ' | |||
Other | -1,982,000 | -799,000 | ' | |||
Total deferred tax liabilities | -53,122,000 | -45,161,000 | ' | |||
Net deferred tax assets | 195,160,000 | 168,187,000 | ' | |||
Cumulative amount of undistributed earnings attributable to foreign subsidiaries | 203,400,000 | ' | ' | |||
Income tax receivable/payable [Abstract] | ' | ' | ' | |||
Current tax receivable | 25,000,000 | 48,800,000 | ' | |||
Current tax payable | 47,000,000 | 17,500,000 | ' | |||
Income Tax Uncertainties [Abstract] | ' | ' | ' | |||
Increase in accrued interest expense related to unrecognized tax benefits | 1,400,000 | ' | ' | |||
Increase (decrease) in penalty expense related to unrecognized tax benefits | 573,000 | ' | ' | |||
Accrued interest and penalties related to unrecognized tax benefits | 5,100,000 | 3,200,000 | ' | |||
Changes in the liability for unrecognized tax benefits [Roll Forward] | ' | ' | ' | |||
Liability for unrecognized tax benefits at beginning of year | 12,672,000 | 4,730,000 | 4,308,000 | |||
Increases for tax positions related to the current year | 3,118,000 | 2,420,000 | 1,199,000 | |||
Increases for tax psotions related to prior years | 4,484,000 | [2] | 6,559,000 | [2] | 551,000 | |
Decreases for tax positions related to prior years | -352,000 | -196,000 | -44,000 | |||
Decreases due to lapsed statute of limitations | -1,119,000 | -841,000 | -1,284,000 | |||
Liability for unrecognized tax benefits at end of fiscal year | 18,803,000 | 12,672,000 | 4,730,000 | |||
Unrecognized tax benefits that would impact effective tax rate | $9,500,000 | $6,400,000 | ' | |||
Minimum [Member] | ' | ' | ' | |||
Deferred tax liabilities: | ' | ' | ' | |||
Expiration date of operating loss carryforwards | 31-Dec-19 | ' | ' | |||
Maximum [Member] | ' | ' | ' | |||
Deferred tax liabilities: | ' | ' | ' | |||
Expiration date of operating loss carryforwards | 31-Dec-30 | ' | ' | |||
[1] | We have historically provided deferred taxes for the presumed repatriation to the U.S. of earnings from certain foreign subsidiaries. Management changed its assertion related to the earnings of one of our Canadian subsidiaries resulting in a decrease in deferred tax liabilities related to undistributed foreign earnings. | |||||
[2] | The increase is due to tax positions taken in previously filed tax returns with certain states. We continue to evaluate these positions and intend to contest the proposed adjustments made by taxing authorities. |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | USD ($) | Underwriting commitment [Member] | Underwriting commitment [Member] | Deposits with clearing organizations [Member] | Loans to financial advisors and certain key revenue producers commitment [Member] | RJ Bank syndicated loans [Member] | Independent venture capital or private equity partnerships commitment [Member] | Total independent venture capital, private equity partnerships, and private equity limited partnerships [Member] | Internally sponsored private equity limited partnership commitment [Member] | Commitment to lend to RJTCF [Member] | Commitment to lend to RJTCF [Member] | Lease agreements commitments [Member] | Lease agreements commitments [Member] | Lease agreements commitments [Member] | Forward GNMA MBS purchase commitments [Member] | TBA securities [Member] | |
Raymond James and Associates Inc [Member] | Raymond James Ltd [Member] | USD ($) | USD ($) | RJ Bank [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Subsidiary of RJ Bank [Member] | USD ($) | USD ($) | USD ($) | Raymond James and Associates Inc [Member] | Raymond James and Associates Inc [Member] | |||
USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||
Commitments and Contingencies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of commitment | ' | ' | $0 | 28,000,000 | ' | $33,300,000 | ' | $127,100,000 | ' | $69,600,000 | $150,000,000 | $14,300,000 | ' | ' | ' | $199,000,000 | ' |
Value of margin securities pledged | ' | ' | ' | ' | 189,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of deposit required with clearing organization | ' | ' | ' | ' | 128,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of purchased syndicated loans not yet settled | ' | ' | ' | ' | ' | ' | 76,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement of purchased syndicated loans (in days) | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of commitment fulfilled | ' | ' | ' | ' | ' | ' | ' | ' | 101,200,000 | 48,900,000 | ' | 3,100,000 | ' | ' | ' | ' | ' |
Amount of commitment, minimum increment | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of commitment, maximum increment | ' | ' | ' | ' | ' | ' | ' | 29,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of different independent venture capital or private equity partnerships | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of invested distributions received | ' | ' | ' | ' | ' | ' | ' | ' | 73,900,000 | 39,100,000 | ' | ' | ' | ' | ' | ' | ' |
Number of internally sponsored private equity limited partnership | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' |
Number of days that investments in project partnerships are typically sold (in days) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' |
Cash funded to invest in loans or investments in project partnerships | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,300,000 | ' | ' | ' | ' | ' | ' |
Reserve for unfunded lending commitments | 9,300,000 | 9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | 52,700,000 | ' | ' | ' | ' | ' | ' |
Exepected time of purchase (in days) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' |
Net liability fair value of TBA securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 |
Estimated fair value of the TBA security purchase commitment liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,000,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum annual rental payments, due in 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' |
Minimum annual rental payments, due in 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,700,000 | ' | ' | ' | ' |
Minimum annual rental payments, due in 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,800,000 | ' | ' | ' | ' |
Minimum annual rental payments, due in 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,600,000 | ' | ' | ' | ' |
Minimum annual rental payments, due in 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,900,000 | ' | ' | ' | ' |
Minimum annual rental payments, due thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101,800,000 | ' | ' | ' | ' |
Rental expense incurred under leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,500,000 | 73,900,000 | 56,200,000 | ' | ' |
Approximate market values of collateral received that can be repledged [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities purchased under agreements to resell and other collateralized financings | 725,935,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities received in securities borrowed vs. cash transactions | 143,108,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral received for margin loans | 1,440,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities received as collateral related to derivative contracts | 6,409,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 2,315,702,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate market values of collateral repledged and financial instruments that we own and pledged [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities sold under agreements to repurchase | 313,548,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities delivered in securities loaned vs. cash transactions | 342,096,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities pledged as collateral under secured borrowing arrangements | 116,952,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral used for deposits at clearing organizations | 207,468,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $980,064,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
COMMITMENTS_CONTINGENCIES_AND_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Guarantor Obligations (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
Fund | Interest rate swap guarantee [Member] | Performance guarantees for completion of trades with counterparties [Member] | Letter of credit guarantee [Member] | Mortgage debt guarantee [Member] | Project partnerships sold guarantee [Member] | Delivery of certain tax credits and other tax benefits guarantee [Member] | ||||
Guarantees [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ||
Current exposure of guarantees | ' | ' | $7,100,000 | $0 | $8,000,000 | $45,700,000 | $1,700,000 | $42,000,000 | ||
Maturity date of interest rate swap guarantees - low range | ' | ' | 1-Aug-14 | ' | ' | ' | ' | ' | ||
Maturity date of interest rate swap guarantees - high range | ' | ' | 1-May-19 | ' | ' | ' | ' | ' | ||
Estimated total potential exposure of guarantee | ' | ' | 10,600,000 | ' | ' | ' | ' | ' | ||
Number of funds offering guaranteed performance to various third-parties on certain obligations | 1 | ' | ' | ' | ' | ' | ' | ' | ||
Number of years under the guarantee to deliver a certain amount of tax credits and other tax benefits (in years) | ' | ' | ' | ' | ' | ' | ' | '9 | ||
Low-income housing tax credit fund financing asset | 33,670,000 | [1] | 41,588,000 | [1] | ' | ' | ' | ' | ' | 33,700,000 |
Amount of liability related to the low-income housing tax credit fund financing asset | $33,700,000 | $41,700,000 | ' | ' | ' | ' | ' | $33,700,000 | ||
[1] | In a prior year, we sold an investment in a low-income housing tax credit fund and we guaranteed the return on investment to the purchaser. As a result of this guarantee obligation, we are the primary beneficiary of the fund (see Note 11 for further information regarding the consolidation of this fund) and we have accounted for this transaction as a financing. As a financing transaction, we continue to account for the asset transferred to the purchaser, and maintain a related liability corresponding to our obligations under the guarantee. As the benefits are delivered to the purchaser of the investment, this financing asset and the related liability decrease. A related financing liability in the amount of $33.7 million and $41.7 million is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2013 and 2012, respectively. See Note 20 for further discussion of our obligations under the guarantee. |
COMMITMENTS_CONTINGENCIES_AND_4
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Loss Contingencies (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Indemnification Agreement [Member] | |||||
Regions Funds, Class Action [Member] | Regions Funds, Derivative Action [Member] | Various Lawsuits [Member] | ||||||
Loss Contingency, Settlement [Abstract] | ' | ' | ' | ' | ' | ' | ||
Litigation settlement amount | ' | ' | $62,000,000 | $6,000,000 | ' | ' | ||
Legal matter contingencies [Abstract] | ' | ' | ' | ' | ' | ' | ||
Estimate of range of possible loss, minimum | ' | ' | ' | ' | 0 | 30,000,000 | ||
Estimate of range of possible loss, maximum | ' | ' | ' | ' | 6,000,000 | 250,000,000 | ||
Indemnification asset | 171,135,000 | [1] | 197,898,000 | [1] | ' | ' | ' | ' |
Other receivables | 407,329,000 | 427,641,000 | ' | ' | ' | 2,700,000 | ||
Indemnification liability for potential loss | ' | ' | ' | ' | ' | 169,000,000 | ||
Reimbursed costs related to legal matters, subject to indemnifcation | ' | ' | ' | ' | ' | $25,000,000 | ||
[1] | The indemnification asset primarily pertains to legal matters for which Regions has indemnified RJF in connection with our acquisition of Morgan Keegan. The liabilities related to such matters are included in trade and other payables on our Consolidated Statements of Financial Condition. See Notes 3 and 20 for additional information. |
OTHER_COMPREHENSIVE_INCOME_Det
OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||||
Other comprehensive income, tax effect [Abstract] | ' | ' | ' | |||
Net change in currency translation and net investment hedges, tax effect | $6,861,000 | ($5,741,000) | $0 | |||
Accumulated other comprehensive income, net of tax [Abstract] | ' | ' | ' | |||
Accumulated other comprehensive income | 10,726,000 | 9,447,000 | ' | |||
Accumulated other comprehensive income [Member] | ' | ' | ' | |||
Activity in other comprehensive income, net of tax [Abstract] | ' | ' | ' | |||
Net unrealized gain on available for sale securities, (net of tax effect of $9 million in fiscal year 2013, $7.6 million in fiscal 2012, and $1.5 million in fiscal 2011) | 15,042,000 | 12,886,000 | 2,621,000 | |||
Net change in currency translations and net investment hedges (net of a tax effect of $6.9 million in fiscal year 2013 and ($5.7) million in fiscal year 2012 | -13,763,000 | [1] | 6,166,000 | [1] | -6,029,000 | [1] |
Other comprehensive income (loss) | 1,279,000 | 19,052,000 | -3,408,000 | |||
Other comprehensive income, tax effect [Abstract] | ' | ' | ' | |||
Net unrealized gain (loss) on available for sale securities, tax effect | 9,000,000 | 7,600,000 | 1,500,000 | |||
Net change in currency translation and net investment hedges, tax effect | 6,900,000 | -5,700,000 | ' | |||
Other Comprehensive Income (Loss) [Member] | ' | ' | ' | |||
Accumulated other comprehensive income, tax effect [Abstract] | ' | ' | ' | |||
Net gains (losses) recognized on forward foreign exchange derivatives | 14,000,000 | -10,000,000 | ' | |||
Net unrealized loss on securities available for sale, tax effect | -700,000 | -9,700,000 | ' | |||
Other comprehensive income, tax effect [Abstract] | ' | ' | ' | |||
Net change in currency translation and net investment hedges, tax effect | 1,100,000 | -5,700,000 | ' | |||
Accumulated other comprehensive income, net of tax [Abstract] | ' | ' | ' | |||
Net unrealized loss on available for sale securities, (net of tax effects of ($700) thousand at September 30, 2013 and ($9.7) million at | -1,276,000 | -16,318,000 | ' | |||
Net currency translations and net investment hedges (net of a tax effect of $1.1 million at September 30, 2013 and ($5.7) million at September 30, | 12,002,000 | [1] | 25,765,000 | [1] | ' | |
Accumulated other comprehensive income | $10,726,000 | $9,447,000 | ' | |||
[1] | Includes net gains (losses) recognized on forward foreign exchange derivatives of $14 million and $(10) million for the years ended September 30, 2013 and 2012, respectively (see Note 18 for additional information). We did not enter into any forward foreign exchange derivative contracts during the year ended September 30, 2011.All of the components of other comprehensive income described above, net of tax, are attributable to RJF. |
INTEREST_INCOME_AND_INTEREST_E2
INTEREST INCOME AND INTEREST EXPENSE (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Interest income: | ' | ' | ' |
Margin balances | $60,931 | $60,104 | $52,361 |
Assets segregated pursuant to regulations and other segregated assets | 17,251 | 16,050 | 16,343 |
Bank loans, net of unearned income | 335,964 | 319,211 | 270,057 |
Available for sale securities | 8,005 | 9,076 | 10,815 |
Trading instruments | 20,089 | 20,977 | 20,549 |
Stock loan | 8,271 | 9,110 | 6,035 |
Loans to Financial Advisors | 6,510 | 4,797 | 4,688 |
Corporate cash and all other | 16,578 | 13,933 | 11,470 |
Total interest income | 473,599 | 453,258 | 392,318 |
Interest expense: | ' | ' | ' |
Brokerage client liabilities | 2,049 | 2,213 | 3,422 |
Retail bank deposits | 9,032 | 9,484 | 12,543 |
Trading instrument sold but not yet purchased | 3,595 | 2,437 | 3,621 |
Stock borrow | 2,158 | 1,976 | 1,807 |
Borrowed funds | 4,724 | 5,915 | 3,969 |
Senior notes | 76,113 | 58,523 | 31,320 |
Interest expense of consolidated VIEs | 3,959 | 5,032 | 6,049 |
Other | 8,741 | 5,789 | 3,099 |
Total interest expense | 110,371 | 91,369 | 65,830 |
Net interest income | 363,228 | 361,889 | 326,488 |
Subtract: provision for loan losses | -2,565 | -25,894 | -33,655 |
Net interest income after provision for loan losses | $360,663 | $335,995 | $292,833 |
EMPLOYEE_BENEFIT_PLANS_ESOP_De
EMPLOYEE BENEFIT PLANS, ESOP (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Stock Ownership Plan ESOP [Member] | Employee Stock Ownership Plan ESOP [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Award requisite service period | '6 years | ' | ' |
Number of shares of common stock held by ESOP | ' | 5,872,000 | 6,038,000 |
Market value of common stock held by the ESOP | ' | $244,000,000 | ' |
Value of unearned (not yet vested) shares held by ESOP plan participants | ' | 2,400,000 | ' |
401(k) plan [Abstract] | ' | ' | ' |
Employer match of first $500 of compensation deferred by each participant (in hundredths) | 100.00% | ' | ' |
Employer match of first $500 of compensation deferred by each participant (in dollars) | 500 | ' | ' |
Employer match of next $500 of compensation deferred by each participant (in hundredths) | 50.00% | ' | ' |
Employer match of next $500 of compensation deferred by each partiicipant (in dollars) | 500 | ' | ' |
Voluntary Deferred Compensation Plan [Abstract] | ' | ' | ' |
VDCP minimum annual compensation amount | $300,000 | ' | ' |
EMPLOYEE_BENEFIT_PLANS_Compens
EMPLOYEE BENEFIT PLANS, Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Compensation Expense | $61.80 | $57.80 | $54.10 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2013 | Feb. 23, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Stock Incentive Plan 2012 [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | ||
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | ||||||
Maximum [Member] | Minimum [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees and Directors [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Employees [Member] | |||||||
Maximum [Member] | Minimum [Member] | |||||||||||||||
Share-based compensation plans [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of share based compensation plans | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by Share-based payment Award, number of shares available for grant | ' | 15,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of previous share based compensation plans | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable period after grant date for options granted before August 21, 2008 | ' | ' | ' | '72 months | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable period after grant date for options granted on or after August 21, 2008 | ' | ' | ' | '72 months | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of days within termination which options are excercisable (in days) | ' | ' | '45 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, vesting period | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefit (deficiency) from share-based payments | ' | ' | ' | ' | ' | ' | ' | ' | $3,600,000 | ' | ' | ' | ' | ' | ' | ' |
Maximum anniversary date of expiration of options granted to board of directors | 'tenth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense and income tax benefits [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total share-based expense | ' | ' | ' | ' | ' | 8,382,000 | 9,623,000 | 7,319,000 | 48,621,000 | 39,588,000 | 30,179,000 | ' | ' | 2,700,000 | 2,400,000 | 1,600,000 |
Income tax benefits related to share-based expense | ' | ' | ' | ' | ' | 596,000 | 701,000 | 319,000 | 16,607,000 | 13,186,000 | 11,468,000 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (in hundredths) | ' | ' | ' | ' | ' | 1.37% | 1.84% | 1.80% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (in hundredths) | ' | ' | ' | ' | ' | 39.38% | 45.17% | 43.74% | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (in hundredths) | ' | ' | ' | ' | ' | 0.67% | 0.91% | 1.41% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected lives (in years) | ' | ' | ' | ' | ' | '5 years 6 months | '4 years 7 months 7 days | '4 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding - beginning of period (in shares) | ' | ' | ' | ' | ' | 4,392,270 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | 840,150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | ' | -1,262,076 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | -126,635 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in shares) | ' | ' | ' | ' | ' | -900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding - end of period (in shares) | ' | ' | ' | ' | ' | 3,842,809 | 4,392,270 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price, outstanding - beginning of period (in dollars per share) | ' | ' | ' | ' | ' | $27.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price, granted (in dollars per share) | ' | ' | ' | ' | ' | $37.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price, exercised (in dollars per share) | ' | ' | ' | ' | ' | $28.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price, forfeited (in dollars per share) | ' | ' | ' | ' | ' | $27.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price, expired (in dollars per share) | ' | ' | ' | ' | ' | $30.89 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price, outstanding - end of period (in dollars per share) | ' | ' | ' | ' | ' | $28.92 | $27.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average remaining contractual term (in years) | ' | ' | ' | ' | ' | '3 years 2 months 8 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregated intrinsic value | ' | ' | ' | ' | ' | 49,032,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, outstanding (in shares) | ' | ' | ' | ' | ' | 584,627 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, weighted average exercise price (in dollars per share) | ' | ' | ' | ' | ' | $26.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, weighted average remaining contractual term (in years) | ' | ' | ' | ' | ' | '1 year 1 month 28 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, aggregate intrinsic value | ' | ' | ' | ' | ' | 9,066,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value per option (in dollars per share) | ' | ' | ' | ' | ' | $12.06 | $9.67 | $9.62 | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of stock options exercised | ' | ' | ' | ' | ' | 14,240,000 | 3,222,000 | 10,553,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total grant date fair value of stock options vested | ' | ' | ' | ' | ' | 11,598,000 | 3,965,000 | 9,206,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from stock option exercises | ' | ' | ' | ' | ' | 33,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess benefits realized during the period as a result of the exercise of options | ' | ' | ' | ' | ' | 301,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested - beginning of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 6,050,789 | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,001,231 | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -954,805 | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -179,804 | ' | ' | ' | ' | ' | ' | ' |
Nonvested - end of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 5,917,411 | 6,050,789 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value, nonvested - beginning of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $29.87 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value, granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $38.12 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value, vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $26.86 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value, forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $33.16 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value, nonvested - end of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $31.66 | $29.87 | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan, additional disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for grant (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,375,000 | ' | ' |
Share-based compensation arrangement by share-based payment award, maximum employee subscription rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' |
Limit on the number shares that eligible employees may purchase in any calendar year (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' |
Limit on the value of shares that eligible employees may purchase in any calendar year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' |
Purchase price of the stock in relation to the market price (one day prior to the purchase) (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' |
Number of shares sold during the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 436,000 | 480,000 | 337,000 |
Discount from market value (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' |
Stock bonus plan, additional disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of annual bonus amounts in excess of $250,000 that an employee can receive in stock awards, in lieu of cash (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of annual bonus amounts in excess of $250,000 at an employee can receive in stock awards, in lieu of cash (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Bonus amount that must be exceeded in order to receive awards in lieu of cash | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' |
Restricted period of awards (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '3 years | ' | ' | ' |
Unrecognized pre-tax expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized pre-tax expense | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | 91,600,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period of recognition (in years) | ' | ' | ' | ' | ' | '2 years 10 months 24 days | ' | ' | '2 years 10 months 18 days | ' | ' | ' | ' | ' | ' | ' |
Total fair value fo shares vested under the plan | ' | ' | ' | ' | ' | ' | ' | ' | $25,400,000 | ' | ' | ' | ' | ' | ' | ' |
Employee investment funds [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of the purchase price per unit that non-recourse loans were made to key employees who participate in the employee investment funds (in hundredths) | 'two-thirds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NONEMPLOYEE_SHAREBASED_AND_OTH2
NON-EMPLOYEE SHARE-BASED AND OTHER COMPENSATION (Details) (Independent Contractor Financial Advisors [Member], Stock Incentive Plan 2012 [Member], USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation [Abstract] | ' | ' | ' |
Exercisable period after grant date for options granted before August 21, 2008 (in years) | '5 years | ' | ' |
Exercisable period after grant date for options granted on or after August 21, 2008 (in years) | '5 years | ' | ' |
Period of days within termination which options are excercisable (in days) | '45 days | ' | ' |
Maximum expiration date from grant date anniversary (in years) | 'sixth | ' | ' |
Expense and income tax benefits [Abstract] | ' | ' | ' |
Total share-based expense (expense reduction) | $4,200,000 | ' | ' |
Income tax benefits related to share-based expense | 487,000 | 773,000 | 362,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' |
Dividend yield (in hundredths) | 1.34% | 1.52% | 1.62% |
Expected volatility (in hundredths) | 39.88% | 43.84% | 44.14% |
Risk-free interest rate (in hundreths) | 1.16% | 0.73% | 0.65% |
Expected lives (in years) | '3 years 3 months 25 days | '3 years 3 months 7 days | '2 years 6 months 15 days |
Average exercise period of options (in days) | '90 days | ' | ' |
Summary of option activity [Roll Forward] | ' | ' | ' |
Outstanding - beginning of period (in shares) | 320,750 | ' | ' |
Granted (in shares) | 47,600 | ' | ' |
Exercised (in shares) | -133,900 | ' | ' |
Forfeited (in shares) | -4,300 | ' | ' |
Expired (in shares) | -1,900 | ' | ' |
Outstanding - end of period (in shares) | 228,250 | 320,750 | ' |
Exercisable, outstanding (in shares) | 13,000 | ' | ' |
Option activity, additional disclosures [Abstract] | ' | ' | ' |
Weighted average exercise price, outstanding - beginning of period (in dollars per share) | $27.87 | ' | ' |
Weighted average exercise price, granted (in dollars per share) | $37.87 | ' | ' |
Weighted average exercise price, exercised (in dollars per share) | $31.40 | ' | ' |
Weighted average exercise price, forfeited (in dollars per share) | $26.76 | ' | ' |
Weighted average exercise price, expired (in dollars per share) | $31.78 | ' | ' |
Weighted average exercise price, outstanding - end of period (in dollars per share) | $27.88 | $27.87 | ' |
Weighted-average remaining contractual term (in years) | '3 years 18 days | ' | ' |
Exercisable, weighted average exercise price (in dollars per share) | $30.44 | ' | ' |
Exercisable, weighted average remaining contractual term (in years) | '1 month 28 days | ' | ' |
Aggregate intrinsic value | 3,148,000 | ' | ' |
Exercisable, aggregate intrinsic value | 146,000 | ' | ' |
Total intrinsic value of stock options exercised | 985,000 | 783,000 | 3,300,000 |
Total fair value of stock options vested | 347,000 | 1,116,000 | 1,448,000 |
Total share-based expense | 1,282,000 | 2,033,000 | 952,000 |
Excess benefits realized during the period as a result of the exercise of options | 127,000 | ' | ' |
Unrecognized pre-tax expense [Abstract] | ' | ' | ' |
Unrecognized pre-tax expense | 875,000 | ' | ' |
Weighted-average reporting date fair value of unvested options (in dollars per share) | $17.68 | ' | ' |
Weighted-average period of recognition (in years) | '2 years 11 months 12 days | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation [Abstract] | ' | ' | ' |
Restricted period of awards (in years) | '5 years | ' | ' |
Expense and income tax benefits [Abstract] | ' | ' | ' |
Income tax benefits related to share-based expense | 315,000 | 783,000 | 351,000 |
Option activity, additional disclosures [Abstract] | ' | ' | ' |
Total share-based expense | 829,000 | 2,062,000 | 923,000 |
Summary of equity instruments other than options, activity [Roll forward] | ' | ' | ' |
Nonvested - beginning of period (in shares) | 105,945 | ' | ' |
Granted (in shares) | 0 | ' | ' |
Vested (in shares) | -74,356 | ' | ' |
Forfeited (in shares) | -5,405 | ' | ' |
Nonvested - end of period (in shares) | 26,184 | 105,945 | ' |
Equity instruments other than options, additional disclosures [Abstract] | ' | ' | ' |
Weighted average reporting date fair value, nonvested - beginning of period (in dollars per share) | $36.65 | ' | ' |
Weighted average reporting date fair value, nonvested - end of period (in dollars per share) | $41.67 | $36.65 | ' |
Weighted-average fair value of shares vested (in dollars per share) | $42.11 | ' | ' |
Weighted-average fair value of shares forfeited (in dollars per share) | $36.71 | ' | ' |
Unrecognized pre-tax expense [Abstract] | ' | ' | ' |
Unrecognized pre-tax expense | 231,000 | ' | ' |
Weighted-average reporting date fair value of unvested restricted stock (in dollars per share) | $41.67 | $36.65 | ' |
Weighted-average period of recognition (in years) | '1 year 10 months 28 days | ' | ' |
Total fair value fo shares vested under the plan | $3,100,000 | $1,600,000 | $49,000 |
REGULATIONS_AND_CAPITAL_REQUIR2
REGULATIONS AND CAPITAL REQUIREMENTS (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
In Thousands, unless otherwise specified | USD ($) | Raymond James Financial Inc [Member] | Raymond James Financial Inc [Member] | RJ Bank [Member] | RJ Bank [Member] | RJ Bank [Member] | Raymond James Financial Services Inc [Member] | Raymond James Financial Services Inc [Member] | Raymond James and Associates Inc [Member] | Raymond James and Associates Inc [Member] | MK&Co [Member] | MK&Co [Member] | Raymond James Ltd [Member] | Raymond James Ltd [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | CAD | |||
Total Capital (to risk-weighted assets) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Actual, amount | ' | $3,445,136 | $3,056,794 | $1,234,268 | $1,158,139 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Actual, ratio (in hundredths) | ' | 19.80% | 18.90% | 13.00% | 13.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Requirement for capital adequacy purposes, amount | ' | 1,391,974 | 1,293,881 | 758,996 | 694,275 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Requirement for capital adequacy purposes, ratio (in hundredths) | ' | 8.00% | 8.00% | 8.00% | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
To be well capitalized under prompt corrective action provisions, amount | ' | 1,739,968 | 1,617,351 | 948,745 | 867,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
To be well capitalized under prompt corrective action provisions, ratio (in hundredths) | ' | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Tier I Capital (to Risk-Weighted Assets) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Actual, amount | ' | 3,294,595 | 2,896,279 | 1,115,113 | 1,049,060 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Actual, ratio (in hundredths) | ' | 18.90% | 17.90% | 11.80% | 12.10% | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | |
Requirement for capital adequacy purposes, amount | ' | 697,269 | 647,213 | 379,498 | 347,137 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Requirement for capital adequacy purposes, ratio (in hundredths) | ' | 4.00% | 4.00% | 4.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
To be well capitalized under prompt corrective action provisions, amount | ' | 1,045,903 | 970,820 | 569,247 | 520,706 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
To be well capitalized under prompt corrective action provisions, ratio (in hundredths) | ' | 6.00% | 6.00% | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Tier I Capital (to Adjusted Assets) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Actual, amount | ' | 3,294,595 | 2,896,279 | 1,115,113 | 1,049,060 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Actual, ratio (in hundredths) | ' | 14.50% | 14.00% | 10.40% | 10.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Requirement for capital adequacy purposes, amount | ' | 908,854 | 827,508 | 430,154 | 386,245 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Requirement for capital adequacy purposes, ratio (in hundredths) | ' | 4.00% | 4.00% | 4.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
To be well capitalized under prompt corrective action provisions, amount | ' | 1,136,067 | 1,034,385 | 537,692 | 482,807 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
To be well capitalized under prompt corrective action provisions, ratio (in hundredths) | ' | 5.00% | 5.00% | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Alternative Method Elected [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net capital as a percent of aggregate debit items (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 23.14% | 17.22% | 0.00% | 65.84% | [1] | ' | ' |
Net capital | ' | ' | ' | ' | ' | ' | 18,103 | 11,689 | 435,343 | 264,315 | 6,047 | 263,366 | [1] | ' | ' |
Less: required net capital | ' | ' | ' | ' | ' | ' | -250 | -250 | -37,625 | -30,696 | -250 | -8,432 | [1] | ' | ' |
Excess net capital | ' | ' | ' | ' | ' | ' | 17,853 | 11,439 | 397,718 | 233,619 | 5,797 | 254,934 | [1] | ' | ' |
Risk adjusted capital of Canadian broker-dealer subsidiary [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Risk adjusted capital before minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,777 | 77,871 | |
Less: required minimum capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -250 | -250 | |
Risk adjusted capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,527 | 77,621 | |
Requirements of broker-dealer subsidiaries [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Maximum multiple of net capital allowed for aggregate indebtedness | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Minimum net capital allowed under the alternative net capital requirement | $1,000 | ' | ' | ' | ' | ' | $250 | ' | ' | ' | ' | ' | ' | ' | |
Percentage of Aggregate Debit Items allowed for net capital, under the alternative net capital requirement | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Threshold percentage of Aggregate Debit Items for net capital, at which a member firm may be required to reduce its business | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Threshold percentage of Aggregate Debit Items for net capital, at which a member firm may be prohibited from expanding its business and declaring cash dividends | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | MK & Co.’s net capital position as of September 30, 2012 was amended for insignificant changes to conform to final regulatory filings. |
FINANCIAL_INSTRUMENTS_WITH_OFF2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
USD ($) | USD ($) | Foreign exchange forward [Member] | Standby letters of credit [Member] | Standby letters of credit [Member] | Open end consumer lines of credit [Member] | Open end consumer lines of credit [Member] | Commercial lines of credit [Member] | Commercial lines of credit [Member] | Unfunded loan commitments - variable rate [Member] | Unfunded loan commitments - variable rate [Member] | |
CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||
Schedule of Off-Balance Sheet Risks [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of securities borrowed | $64,600,000 | $93,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of securities loaned | 42,700,000 | 81,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract value of securities borrowed | 66,400,000 | 96,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract value of securities loaned | 49,500,000 | 91,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of securities loaned owned by clients and others | 299,100,000 | 334,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract value of securities loaned owned by clients and others | 305,100,000 | 339,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of securities sold and obligated to purchase | 220,656,000 | 232,436,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liability, notional amount | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative asset, notional amount | ' | ' | 5,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments to extend credit and other credit related financial instruments | ' | ' | ' | 122,672,000 | 140,688,000 | 829,923,000 | 480,304,000 | 1,743,594,000 | 1,804,771,000 | 216,918,000 | 101,077,000 |
Standby letters of credit maximum expiration term (in years) | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit amount outstanding | $123,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Income for basic earnings per common share: | ' | ' | ' | |||
Net income attributable to Raymond James Financial, Inc. | $367,154 | $295,869 | $278,353 | |||
Less allocation of earnings and dividends to participating securities | -4,164 | [1] | -5,958 | [1] | -8,777 | [1] |
Net income attributable to RJF common shareholders | 362,990 | 289,911 | 269,576 | |||
Income for diluted earnings per common share: | ' | ' | ' | |||
Net income attributable to Raymond James Financial, Inc. | 367,154 | 295,869 | 278,353 | |||
Less allocation of earnings and dividends to participating securities | -4,100 | [1] | -5,926 | [1] | -8,756 | [1] |
Net income attributable to RJF common shareholders | 363,054 | 289,943 | 269,597 | |||
Common shares: | ' | ' | ' | |||
Average common shares in basic computation (in shares) | 137,732,000 | 130,806,000 | 122,448,000 | |||
Dilutive effect of outstanding stock options and certain restricted stock units (in shares) | 2,809,000 | 985,000 | 388,000 | |||
Average common shares used in diluted computation (in shares) | 140,541,000 | 131,791,000 | 122,836,000 | |||
Earnings per common share: | ' | ' | ' | |||
Basic (in dollars per share) | $2.64 | $2.22 | $2.20 | |||
Diluted (in dollars per share) | $2.58 | $2.20 | $2.19 | |||
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive (in shares) | 1,153,000 | 1,928,000 | 2,136,000 | |||
Participating securities [Abstract] | ' | ' | ' | |||
Participating securities (in shares) | 1,600,000 | 2,700,000 | 4,000,000 | |||
Dividends paid to participating securities | $800 | $1,400 | $1,900 | |||
Dividends per common share declared and paid [Abstract] | ' | ' | ' | |||
Dividends per common share - declared (in dollars per share) | $0.56 | $0.52 | $0.52 | |||
Dividends per common share - paid (in dollars per share) | $0.55 | $0.52 | $0.50 | |||
[1] | Represents dividends paid during the period to participating securities plus an allocation of undistributed earnings to participating securities. Participating securities represent unvested restricted stock and certain restricted stock units and amounted to weighted-average shares of 1.6 million, 2.7 million and 4 million for the years ended September 30, 2013, 2012 and 2011, respectively. Dividends paid to participating securities amounted to $800 thousand, $1.4 million and $1.9 million for the years ended September 30, 2013, 2012, and 2011 respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. |
SEGMENT_ANALYSIS_Information_C
SEGMENT ANALYSIS, Information Concerning Operations (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2012 | Apr. 02, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | |||||||||||
Morgan Keegan [Member] | Private Client Group [Member] | Private Client Group [Member] | Private Client Group [Member] | Private Client Group [Member] | Capital Markets [Member] | Capital Markets [Member] | Capital Markets [Member] | Capital Markets [Member] | Asset Management [Member] | Asset Management [Member] | RJ Bank [Member] | RJ Bank [Member] | All Other Segments [Member] | All Other Segments [Member] | All Other Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Total Revenues [Member] | |||||||||||||||
Private Client Group [Member] | Private Client Group [Member] | Private Client Group [Member] | Capital Markets [Member] | Capital Markets [Member] | Capital Markets [Member] | Asset Management [Member] | Asset Management [Member] | Asset Management [Member] | RJ Bank [Member] | RJ Bank [Member] | RJ Bank [Member] | All Other Segments [Member] | All Other Segments [Member] | All Other Segments [Member] | |||||||||||||||||||||||||||||||||||
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Total revenues | $4,595,798,000 | [1] | $3,897,900,000 | [1] | $3,399,886,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,930,603,000 | $2,484,670,000 | $2,192,422,000 | $945,477,000 | $820,852,000 | $707,460,000 | $292,817,000 | $237,224,000 | $226,511,000 | $356,130,000 | $345,693,000 | $281,992,000 | $126,401,000 | $58,412,000 | $27,329,000 | ($55,630,000) | ($48,951,000) | ($35,828,000) | ' | |||||||
Income (loss) excluding noncontrolling interests and before provision for income taxes: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Pre-tax income excluding noncontrolling interests | 564,187,000 | 471,525,000 | 461,247,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 230,315,000 | 215,091,000 | 220,299,000 | 102,171,000 | 75,755,000 | 82,521,000 | 96,300,000 | 67,241,000 | 66,176,000 | 267,714,000 | 240,158,000 | 172,993,000 | -132,313,000 | [2] | -126,720,000 | [2] | -80,742,000 | [3] | ' | ' | ' | ' | |||||||
Add: net loss attributable to noncontrolling interests | 29,723,000 | -3,604,000 | -10,502,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Income including noncontrolling interests and before provision for income taxes | 593,910,000 | 467,921,000 | 450,745,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net interest income (expense): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net interest income | 363,228,000 | 361,889,000 | 326,488,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,301,000 | 84,827,000 | 71,724,000 | 4,076,000 | 6,641,000 | 6,166,000 | 81,000 | -17,000 | 107,000 | 338,844,000 | 322,024,000 | 271,306,000 | -65,074,000 | -51,586,000 | -22,815,000 | ' | ' | ' | ' | ||||||||||
Total assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Total assets | 23,186,122,000 | 21,160,265,000 | ' | ' | ' | 7,649,030,000 | [4] | ' | 6,917,562,000 | [4] | ' | 2,548,663,000 | [5] | ' | 2,558,143,000 | [5] | ' | 149,436,000 | 81,838,000 | 10,489,524,000 | 9,701,996,000 | 2,349,469,000 | 1,900,726,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Goodwill and Intangible Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Goodwill | 295,486,000 | 300,111,000 | 71,924,000 | 295,486,000 | 230,000,000 | ' | 174,584,000 | ' | 48,097,000 | 6,900,000 | 120,902,000 | ' | 23,827,000 | ' | ' | ' | ' | ' | ' | ' | 174,584,000 | 173,317,000 | ' | 120,902,000 | 126,794,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Segment Reporting Information, Additional Information: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Number of business segments | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Major customer percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ||||||||||
Business combination acquisition and integration expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,500,000 | 59,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Loss on auction rate securities repurchased | $0 | $0 | $41,391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $41,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
[1] | No individual client accounted for more than ten percent of total revenues in any of the years presented. | ||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The Other segment includes acquisition related expenses pertaining to our acquisitions in the amount of $73.5 million and $59.3 million for the years ended September 30, 2013 and 2012, respectively (see Note 3 for further information regarding our acquisitions). | ||||||||||||||||||||||||||||||||||||||||||||||||
[3] | The Other segment for the year ended September 30, 2011 includes a $41 million loss provision for auction rate securities (see Note 7 for additional information). | ||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Includes $174 million and $173 million of goodwill at September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Includes $121 million and $127 million of goodwill at September 30, 2013 and 2012, respectively. |
SEGMENT_ANALYSIS_Classified_by
SEGMENT ANALYSIS, Classified by Major Geographic Areas (Details) (USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2012 | |||
Revenues: | ' | ' | ' | ' | |||
Total revenues | $4,595,798 | [1] | $3,897,900 | [1] | $3,399,886 | [1] | ' |
Pre-tax income excluding noncontrolling interests: | ' | ' | ' | ' | |||
Total pre-tax income excluding noncontrolling interests | 564,187 | 471,525 | 461,247 | ' | |||
Total assets: | ' | ' | ' | ' | |||
Total assets | 23,186,122 | 21,160,265 | ' | ' | |||
Goodwill and Intangible Assets: | ' | ' | ' | ' | |||
Goodwill | 295,486 | 300,111 | 71,924 | 295,486 | |||
United States [Member] | ' | ' | ' | ' | |||
Revenues: | ' | ' | ' | ' | |||
Total revenues | 4,177,712 | 3,500,982 | 2,947,633 | ' | |||
Pre-tax income excluding noncontrolling interests: | ' | ' | ' | ' | |||
Total pre-tax income excluding noncontrolling interests | 543,093 | 450,731 | 416,955 | ' | |||
Total assets: | ' | ' | ' | ' | |||
Total assets | 21,154,293 | [2] | 19,296,197 | [2] | ' | ' | |
Goodwill and Intangible Assets: | ' | ' | ' | ' | |||
Goodwill | 262,000 | 260,000 | ' | ' | |||
Canada [Member] | ' | ' | ' | ' | |||
Revenues: | ' | ' | ' | ' | |||
Total revenues | 310,616 | 297,348 | 339,067 | ' | |||
Pre-tax income excluding noncontrolling interests: | ' | ' | ' | ' | |||
Total pre-tax income excluding noncontrolling interests | 28,470 | 29,593 | 42,333 | ' | |||
Total assets: | ' | ' | ' | ' | |||
Total assets | 1,965,648 | [3] | 1,788,883 | [3] | ' | ' | |
Goodwill and Intangible Assets: | ' | ' | ' | ' | |||
Goodwill | 33,000 | 33,000 | ' | ' | |||
Europe [Member] | ' | ' | ' | ' | |||
Revenues: | ' | ' | ' | ' | |||
Total revenues | 83,744 | 78,221 | 63,665 | ' | |||
Pre-tax income excluding noncontrolling interests: | ' | ' | ' | ' | |||
Total pre-tax income excluding noncontrolling interests | -8,032 | -1,839 | -2,312 | ' | |||
Total assets: | ' | ' | ' | ' | |||
Total assets | 26,415 | [4] | 42,220 | [4] | ' | ' | |
Goodwill and Intangible Assets: | ' | ' | ' | ' | |||
Goodwill | 0 | 7,000 | ' | ' | |||
Other Geographic Areas [Member] | ' | ' | ' | ' | |||
Revenues: | ' | ' | ' | ' | |||
Total revenues | 23,726 | 21,349 | 49,521 | ' | |||
Pre-tax income excluding noncontrolling interests: | ' | ' | ' | ' | |||
Total pre-tax income excluding noncontrolling interests | 656 | -6,960 | 4,271 | ' | |||
Total assets: | ' | ' | ' | ' | |||
Total assets | $39,766 | $32,965 | ' | ' | |||
[1] | No individual client accounted for more than ten percent of total revenues in any of the years presented. | ||||||
[2] | Includes $262 million and $260 million of goodwill at September 30, 2013 and 2012, respectively. | ||||||
[3] | Includes $33 million of goodwill at September 30, 2013 and 2012. | ||||||
[4] | Includes $7 million of goodwill at September 30, 2012. |
CONDENSED_FINANCIAL_INFORMATIO2
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Details) (USD $) | Sep. 30, 2013 |
In Billions, unless otherwise specified | |
Raymond James and Associates Inc [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Ratio of net capital to aggregate debit balances required by loan covenants | 10.00% |
RJ Bank [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Net assets | 1 |
Subsidiaries [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Net assets restricted from being transferred to Parent | 1.4 |
CONDENSED_FINANCIAL_INFORMATIO3
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Financial Condition (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | ||
Assets: | ' | ' | ' | ' | ||
Cash and cash equivalents | $2,596,616,000 | [1] | $1,980,020,000 | [1] | $2,439,695,000 | $2,943,239,000 |
Investments in consolidated subsidiaries: | ' | ' | ' | ' | ||
Property and equipment, net | 244,416,000 | 231,195,000 | ' | ' | ||
Goodwill and identifiable intangible assets, net | 361,464,000 | 361,246,000 | ' | ' | ||
Other assets | 50,509,000 | 45,924,000 | ' | ' | ||
Total assets | 23,186,122,000 | 21,160,265,000 | ' | ' | ||
Liabilities and Equity [Abstract] | ' | ' | ' | ' | ||
Trade and other | 630,344,000 | 628,734,000 | ' | ' | ||
Intercompany payables to subsidiaries: | ' | ' | ' | ' | ||
Accrued compensation and benefits | 741,787,000 | 690,654,000 | ' | ' | ||
Corporate debt | 1,194,508,000 | 1,329,093,000 | ' | ' | ||
Total liabilities | 19,187,785,000 | 17,479,983,000 | ' | ' | ||
Equity | 3,662,924,000 | 3,268,940,000 | ' | ' | ||
Total liabilities and equity | 23,186,122,000 | 21,160,265,000 | ' | ' | ||
RJF Parent Company [Member] | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ||
Cash and cash equivalents | 274,747,000 | 259,129,000 | 252,601,000 | 286,868,000 | ||
Intercompany receivables from subsidiaries: | ' | ' | ' | ' | ||
Bank subsidiary | 44,000 | 0 | ' | ' | ||
Nonbank subsidiaries | 920,827,000 | [2] | 558,051,000 | [2] | ' | ' |
Investments in consolidated subsidiaries: | ' | ' | ' | ' | ||
Bank subsidiary | 1,106,742,000 | 1,038,449,000 | ' | ' | ||
Nonbank subsidiaries | 2,393,035,000 | 2,515,223,000 | ' | ' | ||
Property and equipment, net | 10,546,000 | 14,398,000 | ' | ' | ||
Goodwill and identifiable intangible assets, net | 31,954,000 | [3] | 274,309,000 | ' | ' | |
Other assets | 634,446,000 | 241,716,000 | ' | ' | ||
Total assets | 5,372,341,000 | 4,901,275,000 | ' | ' | ||
Liabilities and Equity [Abstract] | ' | ' | ' | ' | ||
Trade and other | 66,159,000 | 91,628,000 | ' | ' | ||
Intercompany payables to subsidiaries: | ' | ' | ' | ' | ||
Bank subsidiary | 0 | 39,000 | ' | ' | ||
Nonbank subsidiaries | 217,497,000 | 263,717,000 | ' | ' | ||
Accrued compensation and benefits | 276,916,000 | 128,294,000 | ' | ' | ||
Corporate debt | 1,148,845,000 | 1,148,657,000 | ' | ' | ||
Total liabilities | 1,709,417,000 | 1,632,335,000 | ' | ' | ||
Equity | 3,662,924,000 | 3,268,940,000 | ' | ' | ||
Total liabilities and equity | 5,372,341,000 | 4,901,275,000 | ' | ' | ||
Invested cash and cash equivalents by subsidiaries on behalf of Parent | $760,000,000 | $446,000,000 | ' | ' | ||
[1] | The total amounts presented include cash and cash equivalents of $1.02 billion and $539 million as of September 30, 2013 and 2012, respectively, which are either held directly by RJF or are otherwise invested by one of our subsidiaries on behalf of RJF, and are available without restrictions. | |||||
[2] | Of the total receivable from non-bank subsidiaries, $760 million and $446 million at September 30, 2013 and 2012, respectively, is invested in cash and cash equivalents by the subsidiary on behalf of the Parent. | |||||
[3] | The decrease in goodwill and identifiable intangible assets as of September 30, 2013 compared to the prior year period is primarily the result of the mid-February 2013 transfers of the client accounts of MK & Co. to RJ&A pursuant to our Morgan Keegan acquisition integration strategy (see Note 3 for additional information regarding the Morgan Keegan acquisition). Such transfers constitute transfers of businesses amongst entities under common control of RJF. Accordingly, the goodwill arising from the Morgan Keegan acquisition which had been maintained on the Parent’s statement of financial condition was pushed-down to the statement of financial condition of the subsidiary that received the transferred businesses. There was no impact on the Consolidated Statements of Financial Condition associated with these intercompany transfers. See Note 13 for additional information regarding goodwill and identifiable intangible assets. |
CONDENSED_FINANCIAL_INFORMATIO4
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Income (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Revenues: | ' | ' | ' | |||
Interest | $473,599 | $453,258 | $392,318 | |||
Other, net | 145,882 | 86,473 | 35,170 | |||
Total revenues | 4,595,798 | [1] | 3,897,900 | [1] | 3,399,886 | [1] |
Operating Expenses [Abstract] | ' | ' | ' | |||
Compensation and benefits | 3,054,027 | 2,620,058 | 2,270,735 | |||
Communications and information processing | 257,366 | 195,895 | 137,605 | |||
Occupancy and equipment costs | 157,449 | 134,199 | 108,600 | |||
Business development | 124,387 | 118,712 | 94,875 | |||
Interest | 110,371 | 91,369 | 65,830 | |||
Other | 144,904 | 115,936 | 127,889 | |||
Income before income tax benefits and equity in undistributed net income of subsidiares | 593,910 | 467,921 | 450,745 | |||
Income tax benefits | 197,033 | 175,656 | 182,894 | |||
Net income attributable to Raymond James Financial, Inc. | 367,154 | 295,869 | 278,353 | |||
Change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses | 15,042 | [2] | 12,886 | [2] | 2,621 | [2] |
Total comprehensive income | 368,433 | [2] | 314,921 | [2] | 274,945 | [2] |
RJF Parent Company [Member] | ' | ' | ' | |||
Revenues: | ' | ' | ' | |||
Dividends from nonbank subsidiaries | 822,996 | 433,643 | 164,121 | |||
Dividends from bank subsidiary | 100,000 | 75,000 | 100,000 | |||
Interest from subsidiaries | 1,966 | 1,876 | 1,068 | |||
Interest | 2,510 | 322 | 240 | |||
Other, net | 6,017 | 7,391 | 7,762 | |||
Total revenues | 933,489 | 518,232 | 273,191 | |||
Operating Expenses [Abstract] | ' | ' | ' | |||
Compensation and benefits | 43,673 | 38,027 | 28,214 | |||
Communications and information processing | 5,029 | 4,624 | 3,821 | |||
Occupancy and equipment costs | 1,005 | 1,188 | 1,112 | |||
Business development | 16,506 | 12,613 | 11,684 | |||
Interest | 78,244 | 61,122 | 31,309 | |||
Other | 9,608 | 26,716 | 5,894 | |||
Intercompany allocations and charges | -33,115 | -25,360 | -28,757 | |||
Total expenses | 120,950 | 118,930 | 53,277 | |||
Income before income tax benefits and equity in undistributed net income of subsidiares | 812,539 | 399,302 | 219,914 | |||
Income tax benefits | -54,047 | -48,575 | -11,037 | |||
Income before equity in undistributed net income of subsidiaries | 866,586 | 447,877 | 230,951 | |||
Equity in undistributed net income of subsidiaries | -499,432 | -152,008 | 47,402 | |||
Net income attributable to Raymond James Financial, Inc. | 367,154 | 295,869 | 278,353 | |||
Change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses | 0 | 2 | 0 | |||
Total comprehensive income | $367,154 | $295,871 | $278,353 | |||
[1] | No individual client accounted for more than ten percent of total revenues in any of the years presented. | |||||
[2] | All components of other comprehensive income, net of tax, are attributable to Raymond James Financial, Inc. |
CONDENSED_FINANCIAL_INFORMATIO5
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
Cash flows from operating activities: | ' | ' | ' | ||
Net income attributable to Raymond James Financial, Inc. | $367,154 | $295,869 | $278,353 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ||
Other, net | 23,158 | 17,805 | 50,250 | ||
Net change in: | ' | ' | ' | ||
Other | -66,448 | 12,914 | -13,418 | ||
Accrued compensation and benefits | 50,318 | 59,987 | 34,187 | ||
Net cash provided by operating activities | 659,805 | 391,289 | 1,558,441 | ||
Cash flows from investing activities: | ' | ' | ' | ||
Investments in and advances to subsidiaries, net | 0 | 0 | -6,354 | ||
Acqusition of subsidiary | -6,450 | -1,073,621 | 0 | ||
Net cash used in investing activities | -651,974 | -2,731,215 | -400,143 | ||
Cash flows from financing activities: | ' | ' | ' | ||
Proceeds from issuance of shares in registered public offering | 0 | 362,823 | 0 | ||
Exercise of stock options and employee stock purchases | 55,997 | 33,811 | 47,383 | ||
Purchase of treasury stock | -11,718 | -20,860 | -23,111 | ||
Dividends on common stock | -76,593 | -68,782 | -63,090 | ||
Net cash provided by (used in) financing activities | 615,432 | 1,879,275 | -1,679,384 | ||
Net increase (decrease) in cash and cash equivalents | 616,596 | -459,675 | -521,910 | ||
Cash and cash equivalents at beginning of year | 1,980,020 | [1] | 2,439,695 | 2,943,239 | |
Cash and cash equivalents at end of year | 2,596,616 | [1] | 1,980,020 | [1] | 2,439,695 |
Supplemental disclosures of cash flow information: | ' | ' | ' | ||
Cash paid for interest | 106,818 | 91,453 | 55,332 | ||
Cash received for income taxes, net | 189,730 | 176,539 | 194,233 | ||
RJF Parent Company [Member] | ' | ' | ' | ||
Cash flows from operating activities: | ' | ' | ' | ||
Net income attributable to Raymond James Financial, Inc. | 367,154 | 295,869 | 278,353 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ||
Gain on investments | -11,264 | -6,286 | -6,758 | ||
(Gain) loss on company-owned life insurance | -24,907 | -22,848 | 3,208 | ||
Equity in undistributed net income of subsidiaries | 499,432 | 152,008 | -47,402 | ||
Other, net | -120,340 | 57,221 | 40,917 | ||
Net change in: | ' | ' | ' | ||
Intercompany receivables | -68,635 | -35,456 | -254,735 | ||
Other | 33,584 | -266,467 | 12,406 | ||
Intercompany payables | -214,415 | 239,669 | -6,090 | ||
Trade and other | 10,017 | 22,034 | 12,093 | ||
Accrued compensation and benefits | 148,622 | 44,156 | 5,144 | ||
Net cash provided by operating activities | 619,248 | 479,900 | 37,136 | ||
Cash flows from investing activities: | ' | ' | ' | ||
Investments in and advances to subsidiaries, net | -384,622 | -278,590 | -264,000 | ||
Purchases of investments, net | -171,677 | 3,258 | -5,859 | ||
Purchase of investments in company-owned life insurance, net | -15,017 | -18,271 | -12,224 | ||
Acqusition of subsidiary | 0 | -1,073,621 | 0 | ||
Net cash used in investing activities | -571,316 | -1,367,224 | -282,083 | ||
Cash flows from financing activities: | ' | ' | ' | ||
Proceeds from borrowed funds, net | 0 | 586,860 | 249,498 | ||
Proceeds from issuance of shares in registered public offering | 0 | 362,823 | 0 | ||
Exercise of stock options and employee stock purchases | 55,997 | 33,811 | 47,383 | ||
Purchase of treasury stock | -11,718 | -20,860 | -23,111 | ||
Dividends on common stock | -76,593 | -68,782 | -63,090 | ||
Net cash provided by (used in) financing activities | -32,314 | 893,852 | 210,680 | ||
Net increase (decrease) in cash and cash equivalents | 15,618 | 6,528 | -34,267 | ||
Cash and cash equivalents at beginning of year | 259,129 | 252,601 | 286,868 | ||
Cash and cash equivalents at end of year | 274,747 | 259,129 | 252,601 | ||
Supplemental disclosures of cash flow information: | ' | ' | ' | ||
Cash paid for interest | 78,439 | 49,155 | 25,800 | ||
Cash received for income taxes, net | -100,179 | -74,501 | -15,613 | ||
Supplemental disclosures of noncash investing activity: | ' | ' | ' | ||
Investments in subsidiaries | $457,048 | $153,854 | $40,359 | ||
[1] | The total amounts presented include cash and cash equivalents of $1.02 billion and $539 million as of September 30, 2013 and 2012, respectively, which are either held directly by RJF or are otherwise invested by one of our subsidiaries on behalf of RJF, and are available without restrictions. |