Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 18, 2016 | Mar. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | RAYMOND JAMES FINANCIAL INC | ||
Entity Central Index Key | 720,005 | ||
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 | $ 5,967,672,213 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 141,970,986 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Assets: | ||
Cash and cash equivalents | $ 1,650,452 | $ 2,601,006 |
Assets segregated pursuant to regulations and other segregated assets | 4,889,584 | 2,905,324 |
Securities purchased under agreements to resell and other collateralized financings | 470,222 | 474,144 |
Financial instruments, at fair value: | ||
Trading instruments | 766,805 | 690,551 |
Available for sale securities | 859,398 | 513,730 |
Private equity investments | 194,634 | 209,088 |
Other investments | 296,844 | 248,751 |
Derivative instruments associated with offsetting matched book positions | 422,196 | 389,457 |
Receivables: | ||
Brokerage clients, net | 2,714,782 | 2,185,296 |
Stock borrowed | 170,860 | 124,373 |
Bank loans, net | 15,210,735 | 12,988,021 |
Brokers-dealers and clearing organizations | 164,908 | 134,890 |
Loans to financial advisors, net | 838,721 | 488,760 |
Other | 615,853 | 514,000 |
Deposits with clearing organizations | 245,364 | 207,488 |
Prepaid expenses and other assets | 777,224 | 693,739 |
Property and equipment, net | 321,457 | 255,875 |
Deferred income taxes, net | 322,024 | 266,899 |
Goodwill and identifiable intangible assets, net | 504,442 | 376,962 |
Total assets | 31,593,733 | 26,468,032 |
Liabilities and equity: | ||
Trading instruments sold but not yet purchased, at fair value | 328,938 | 287,993 |
Securities sold under agreements to repurchase | 193,229 | 332,536 |
Derivative instruments associated with offsetting matched book positions, at fair value | 422,196 | 389,457 |
Payables: | ||
Brokerage clients | 6,444,671 | 4,671,073 |
Stock loaned | 677,761 | 478,573 |
Bank deposits | 14,262,547 | 11,919,881 |
Brokers-dealers and clearing organizations | 306,119 | 164,054 |
Trade and other | 590,560 | 729,245 |
Other borrowings | 608,658 | 703,065 |
Accrued compensation, commissions and benefits | 915,954 | 842,527 |
Senior notes payable | 1,680,587 | 1,137,570 |
Total liabilities | 26,443,817 | 21,681,934 |
Commitments and contingencies (see Note 21) | ||
Equity | ||
Preferred stock; $.10 par value; 10,000,000 shares authorized; -0- shares issued and outstanding | 0 | 0 |
Common stock; $.01 par value; 350,000,000 shares authorized; 151,424,947 shares issued as of September 30, 2016 and 149,283,682 shares issued as of September 30, 2015. Shares outstanding of 141,544,511 as of September 30, 2016 and 142,750,653 as of September 30, 2015 | 1,513 | 1,491 |
Additional paid-in capital | 1,498,921 | 1,344,779 |
Retained earnings | 3,832,332 | 3,419,719 |
Treasury stock, at cost; 9,766,846 common shares at September 30, 2016 and 6,364,706 common shares at September 30, 2015 | (362,937) | (203,455) |
Accumulated other comprehensive loss | (55,733) | (40,503) |
Total equity attributable to Raymond James Financial, Inc. | 4,914,096 | 4,522,031 |
Noncontrolling interests | 235,820 | 264,067 |
Total equity | 5,149,916 | 4,786,098 |
Total liabilities and equity | 31,593,733 | 26,468,032 |
LIHTC Funds - Primary Beneficiary | ||
Receivables: | ||
Investments in real estate partnerships held by consolidated variable interest entities | 157,228 | 199,678 |
Payables: | ||
Loans payable of consolidated variable interest entities | $ 12,597 | $ 25,960 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
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) | 151,424,947 | 149,283,682 |
Common stock, shares outstanding (in shares) | 141,544,511 | 142,750,653 |
Treasury stock, shares (in shares) | 9,766,846 | 6,364,706 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Revenues: | ||||
Securities commissions and fees | $ 3,498,615 | $ 3,443,038 | $ 3,241,525 | |
Investment banking | 304,155 | 323,660 | 340,821 | |
Investment advisory and related administrative fees | 392,326 | 385,238 | 362,362 | |
Interest | 640,325 | 543,207 | 480,886 | |
Account and service fees | 511,326 | 457,913 | 407,707 | |
Net trading profit | 91,591 | 58,512 | 64,643 | |
Other | 82,006 | 96,596 | 67,516 | |
Total revenues | 5,520,344 | 5,308,164 | 4,965,460 | |
Interest expense | (117,077) | (107,954) | (104,091) | |
Net revenues | 5,403,267 | 5,200,210 | 4,861,369 | |
Non-interest expenses: | ||||
Compensation, commissions and benefits | 3,624,747 | 3,525,378 | 3,312,635 | |
Communications and information processing | 279,746 | 266,396 | 252,694 | |
Occupancy and equipment costs | 167,455 | 163,229 | 161,683 | |
Clearance and floor brokerage | 42,732 | 42,748 | 39,875 | |
Business development | 148,413 | 158,966 | 139,672 | |
Investment sub-advisory fees | 59,930 | 59,569 | 52,412 | |
Bank loan loss provision | 28,167 | 23,570 | 13,565 | |
Acquisition-related expenses | 40,706 | 0 | 0 | |
Other | 234,000 | 183,642 | 172,885 | |
Total non-interest expenses | 4,625,896 | 4,423,498 | 4,145,421 | |
Income including noncontrolling interests and before provision for income taxes | 777,371 | 776,712 | 715,948 | |
Provision for income taxes | 271,293 | 296,034 | 267,797 | |
Net income including noncontrolling interests | 506,078 | 480,678 | 448,151 | |
Net loss attributable to noncontrolling interests | (23,272) | (21,462) | (32,097) | |
Net income attributable to Raymond James Financial, Inc. | $ 529,350 | $ 502,140 | $ 480,248 | |
Net income per common share – basic (in dollars per share) | $ 3.72 | $ 3.51 | $ 3.41 | |
Net income per common share – diluted (in dollars per share) | $ 3.65 | $ 3.43 | $ 3.32 | |
Weighted-average common shares outstanding - basic (in shares) | 141,773 | 142,548 | 139,935 | |
Weighted-average common and common equivalent shares outstanding - diluted (in shares) | 144,513 | 145,939 | 143,589 | |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on available for sale securities and non-credit portion of other-than-temporary impairment losses | [1] | $ (5,576) | $ (3,325) | $ 6,021 |
Unrealized gain (loss) on currency translations, net of the impact of net investment hedges | [1] | 2,179 | (30,640) | (18,635) |
Unrealized loss on cash flow hedges | [1] | (11,833) | (4,650) | 0 |
Total comprehensive income | [1] | 514,120 | 463,525 | 467,634 |
Other-than-temporary impairment: | ||||
Total other-than-temporary impairment, net | 1,305 | 2,489 | 4,966 | |
Portion of recoveries recognized in other comprehensive income | (1,305) | (2,489) | (4,993) | |
Net impairment losses recognized in other revenue | $ 0 | $ 0 | $ (27) | |
[1] | All components of other comprehensive income (loss), net of tax, are attributable to Raymond James Financial, Inc. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock, par value $.01 per share: | Additional paid-in capital: | Retained earnings: | Treasury stock: | Accumulated other comprehensive (loss) income: | Total equity attributable to Raymond James Financial, Inc. | Noncontrolling interests: | ||
Balance, beginning of year at Sep. 30, 2013 | $ 1,429 | $ 1,136,298 | $ 2,635,026 | $ (120,555) | $ 10,726 | [1] | $ 335,413 | |||
Changes in Shareholders' Equity: | ||||||||||
Share issuances / other | 15 | 887 | (296) | (6,768) | ||||||
Employee stock purchases | 20,234 | |||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 8,780 | 1,517 | ||||||||
Restricted stock, stock option and restricted stock unit expense | 65,410 | |||||||||
Excess tax benefit (reduction of prior tax benefit) from share-based payments | 7,437 | |||||||||
Net income attributable to Raymond James Financial, Inc. | $ 480,248 | 480,248 | ||||||||
Cash dividends declared | (91,133) | |||||||||
Purchases/surrenders | (2,173) | |||||||||
Net change in unrealized gain/loss on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | 6,021 | [2] | 6,021 | [1] | ||||||
Net change in currency translations and net investment hedges, net of tax | (18,635) | [2] | (18,635) | [1] | ||||||
Net change in cash flow hedges, net of tax | 0 | [2] | 0 | [1] | ||||||
Net loss attributable to noncontrolling interests | 32,097 | (32,097) | ||||||||
Capital contributions | 22,565 | |||||||||
Distributions | (27,093) | |||||||||
Balance, end of year at Sep. 30, 2014 | 4,433,256 | 1,444 | 1,239,046 | 3,023,845 | (121,211) | (1,888) | [1] | 292,020 | ||
Changes in Shareholders' Equity: | ||||||||||
Total equity attributable to Raymond James Financial, Inc. | (1,888) | $ 4,141,236 | ||||||||
Share issuances / other | 47 | 454 | 5 | (2,451) | ||||||
Employee stock purchases | 23,847 | |||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 21,351 | (17,464) | ||||||||
Restricted stock, stock option and restricted stock unit expense | 68,196 | |||||||||
Excess tax benefit (reduction of prior tax benefit) from share-based payments | (8,115) | |||||||||
Net income attributable to Raymond James Financial, Inc. | 502,140 | 502,140 | ||||||||
Cash dividends declared | (106,271) | |||||||||
Purchases/surrenders | (64,780) | |||||||||
Net change in unrealized gain/loss on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | (3,325) | [2] | (3,325) | [1] | ||||||
Net change in currency translations and net investment hedges, net of tax | (30,640) | [2] | (30,640) | [1] | ||||||
Net change in cash flow hedges, net of tax | (4,650) | [2] | (4,650) | [1] | ||||||
Net loss attributable to noncontrolling interests | 21,462 | (21,462) | ||||||||
Capital contributions | 19,530 | |||||||||
Distributions | (23,570) | |||||||||
Balance, end of year at Sep. 30, 2015 | 4,786,098 | 1,491 | 1,344,779 | 3,419,719 | (203,455) | (40,503) | [1] | 264,067 | ||
Changes in Shareholders' Equity: | ||||||||||
Total equity attributable to Raymond James Financial, Inc. | 4,522,031 | (40,503) | 4,522,031 | |||||||
Share issuances / other | 22 | 655 | 0 | (1,842) | ||||||
Employee stock purchases | 28,025 | |||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 16,470 | (6,345) | ||||||||
Restricted stock, stock option and restricted stock unit expense | 73,871 | |||||||||
Excess tax benefit (reduction of prior tax benefit) from share-based payments | 35,121 | |||||||||
Net income attributable to Raymond James Financial, Inc. | 529,350 | 529,350 | ||||||||
Cash dividends declared | (116,737) | |||||||||
Purchases/surrenders | (153,137) | |||||||||
Net change in unrealized gain/loss on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | (5,576) | [2] | (5,576) | [1] | ||||||
Net change in currency translations and net investment hedges, net of tax | 2,179 | [2] | 2,179 | [1] | ||||||
Net change in cash flow hedges, net of tax | (11,833) | [2] | (11,833) | [1] | ||||||
Net loss attributable to noncontrolling interests | 23,272 | (23,272) | ||||||||
Capital contributions | 15,179 | |||||||||
Distributions | (18,312) | |||||||||
Balance, end of year at Sep. 30, 2016 | 5,149,916 | $ 1,513 | $ 1,498,921 | $ 3,832,332 | $ (362,937) | (55,733) | [1] | $ 235,820 | ||
Changes in Shareholders' Equity: | ||||||||||
Total equity attributable to Raymond James Financial, Inc. | $ 4,914,096 | $ (55,733) | $ 4,914,096 | |||||||
[1] | All components of other comprehensive (loss) income are attributable to Raymond James Financial, Inc. | |||||||||
[2] | All components of other comprehensive income (loss), net of tax, are attributable to Raymond James Financial, Inc. |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
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 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | |||
Net income attributable to Raymond James Financial, Inc. | $ 529,350 | $ 502,140 | $ 480,248 |
Net loss attributable to noncontrolling interests | (23,272) | (21,462) | (32,097) |
Net income including noncontrolling interests | 506,078 | 480,678 | 448,151 |
Adjustments to reconcile net income including noncontrolling interests to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 72,383 | 68,315 | 64,163 |
Deferred income taxes | (58,798) | (23,462) | (35,171) |
Premium and discount amortization on available for sale securities and unrealized/realized gain on other investments | (25,010) | (42,544) | (22,804) |
Provisions for loan losses, legal proceedings, bad debts and other accruals | 42,394 | 34,277 | 26,414 |
Share-based compensation expense | 76,426 | 71,488 | 69,609 |
Other | 36,590 | 54,527 | 35,343 |
Net change in: | |||
Assets segregated pursuant to regulations and other segregated assets | (1,954,079) | (416,060) | 1,575,563 |
Securities purchased under agreements to resell and other collateralized financings, net of securities sold under agreements to repurchase | (135,385) | 59,913 | 206,666 |
Stock loaned, net of stock borrowed | 152,701 | 95,805 | 50,767 |
Loans provided to financial advisors, net of repayments | (344,786) | (81,617) | (34,067) |
Brokerage client receivables and other accounts receivable, net | (621,161) | (56,394) | (159,562) |
Trading instruments, net | (21,178) | 40,656 | (46,526) |
Prepaid expenses and other assets | 28,122 | 46,896 | 19,330 |
Brokerage client payables and other accounts payable | 1,817,304 | 589,464 | (1,800,957) |
Accrued compensation, commissions and benefits | 46,351 | 28,758 | 72,294 |
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale | (101,155) | (59,638) | 45,811 |
(Excess tax benefit) reduction of prior tax benefit from share-based payment arrangements | (35,121) | 8,115 | (7,437) |
Net cash (used in) provided by operating activities | (518,324) | 899,177 | 507,587 |
Cash flows from investing activities: | |||
Additions to property and equipment | (121,733) | (74,111) | (60,149) |
Increase in bank loans, net | (2,478,549) | (2,200,861) | (2,391,311) |
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock, net | (3,231) | (4,446) | (22,161) |
Proceeds from sales of loans held for investment | 197,557 | 111,731 | 183,279 |
Purchases or contributions, to private equity or other investments, net of proceeds from sales of, or distributions received from, private equity and other investments | (40,352) | (44,574) | 42,832 |
Purchases of available for sale securities | (463,202) | (92,485) | (1,305) |
Available for sale securities maturations, repayments and redemptions | 95,961 | 69,757 | 104,407 |
Proceeds from sales of available for sale securities | 11,062 | 84,785 | 49,937 |
Business acquisitions, net of cash acquired | (175,283) | (15,823) | (2,007) |
Other investing activities, net of proceeds received | (4,049) | (1,932) | (286) |
Net cash used in investing activities | (2,981,819) | (2,167,959) | (2,096,764) |
Cash flows from financing activities: | |||
(Repayments of) proceeds from short-term borrowings, net | (115,000) | (34,700) | 70,624 |
Proceeds from Federal Home Loan Bank advances | 25,000 | 550,299 | 500,367 |
Repayments of Federal Home Loan Bank advances and other borrowed funds | (4,407) | (509,252) | (4,011) |
Proceeds from senior note issuances, net of debt issuance costs | 792,221 | 0 | 0 |
Repayment of senior notes payable | (250,000) | 0 | 0 |
Exercise of stock options and employee stock purchases | 43,331 | 47,964 | 33,633 |
Increase in bank deposits | 2,342,666 | 1,890,957 | 733,553 |
Purchases of treasury stock | (162,502) | (88,542) | (8,427) |
Dividends on common stock | (113,435) | (103,143) | (88,102) |
Excess tax benefit (reduction of prior tax benefit) from share-based payments | 35,121 | (8,115) | 7,437 |
Net cash provided by financing activities | 2,578,733 | 1,725,905 | 1,223,961 |
Currency adjustment: | |||
Effect of exchange rate changes on cash | (29,144) | (55,180) | (32,337) |
Net (decrease) increase in cash and cash equivalents | (950,554) | 401,943 | (397,553) |
Cash and cash equivalents at beginning of year | 2,601,006 | 2,199,063 | 2,596,616 |
Cash and cash equivalents at end of year | 1,650,452 | 2,601,006 | 2,199,063 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 113,639 | 106,313 | 101,090 |
Cash paid for income taxes | 303,793 | 378,928 | 319,279 |
Non-cash transfers of loans to other real estate owned | 3,685 | 5,870 | 6,213 |
LIHTC Funds - Primary Beneficiary | |||
Cash flows from financing activities: | |||
Repayments of borrowings by consolidated variable interest entities which are real estate partnerships | (14,262) | (19,673) | (21,839) |
Proceeds from capital contributed to and borrowings of consolidated variable interest entities which are real estate partnerships | $ 0 | $ 110 | $ 726 |
INTRODUCTION AND BASIS OF PRESE
INTRODUCTION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2016 | |
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” or the “Company”) is a financial holding company whose broker-dealer subsidiaries are engaged in various financial services 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 accompanying 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. 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 certain 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. Acquisitions During fiscal year 2016, we completed our acquisitions of the U.S. Private Client Services unit of Deutsche Bank Wealth Management (“Alex. Brown”), MacDougall, MacDougall & MacTier, Inc. and its wholly owned subsidiaries (“3Macs”) headquartered in Canada, and Mummert & Company Corporate Finance GmbH (“Mummert”) headquartered in Europe. During fiscal year 2015, we completed our acquisitions of Cougar Global Investments Limited (“Cougar”) headquarter in Canada, and the U.S. based The Producers Choice LLC (“TPC”). See Note 3 for additional information on our acquisition activities during fiscal year 2016 and 2015. Principal subsidiaries As of September 30, 2016 , our principal subsidiaries, all wholly owned, consist of: 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”), a registered investment advisor; and Raymond James Bank, N.A. (“RJ Bank”) a national bank. Adoption of new accounting guidance Effective September 30, 2016 , we adopted new accounting guidance related to the presentation of debt issuance costs in the consolidated financial statements. Under this new guidance, debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. We have retroactively applied this guidance to debt liability balances existing in the prior fiscal year, and the applicable prior period balances have been reclassified to conform to the current year presentation. See Note 17 for additional information. Effective September 30, 2016 , we adopted new accounting guidance related to the classification and disclosure of certain investments using the net asset value (“NAV”) as a practical expedient to measure the fair value of the investment. Among its provisions, this new guidance eliminates, for all investments in which fair value is measured using NAV as a practical expedient, the requirement to categorize such investments within the fair value hierarchy. We have retroactively applied this new guidance to investments held in the prior fiscal year, and applicable balances have been reclassified to conform to the current year presentation. See Note 5 for additional information. Reclassifications In addition to the reclassification described above, certain other prior period amounts, none of which are material, have been reclassified to conform to the current year presentation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recognition of revenues Securities commissions and 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 clients which, in certain cases, may include varying discounts. b. Fees earned by financial advisors who provide investment advisory services under various manners of affiliation with us. These fee revenues are computed as either a percentage of the assets in the client account, or a flat periodic fee charged to the client for investment advice. 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 an 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. c. Certain asset-based fees, which are recorded ratably over the period earned. d. Trailing commissions from mutual funds and variable annuities/insurance products, which are recorded ratably over the period earned. e. 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. f. 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, other than for merger and acquisition advisory arrangements, are recorded at the time a transaction is completed and the related income is reasonably determinable. Such investment banking revenues include management fees and underwriting fees, net of reimbursable expenses, earned in connection with the distribution of the underwritten securities, private placement fees, and syndication fees on the sale of low-income housing tax credit fund interests. Any securities we receive in connection with investment banking transactions are recorded at fair value. Merger and acquisition advisory fee revenues are recorded when: there is an executed engagement letter; the delivery of our services is complete; the underlying transaction price is fixed or determinable; and the collectability of the fee is reasonably assured. We distribute our proprietary equity research products to certain institutional investor clients at no charge. Investment advisory fees We provide advice, research and administrative services for clients participating in both our managed and non-discretionary asset-based 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-discretionary asset-based 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. We may earn performance fees from various funds and separate accounts we manage, when their performance exceeds certain specified rates of return. We record performance fee revenues in the period they are specifically quantifiable and are earned. Once realized, such fees are not subject to clawback or reversal. In our low-income housing tax credit fund syndication activities, we provide oversight and management of the funds during the fifteen year tax credit compliance period of the underlying funds’ investments. We recognize these fees ratably over the period the services are provided. 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 $49 million for the year ended September 30, 2016 , and $40 million in each respective year ended September 30, 2015 and 2014 . Commissions remitted totaled $47 million , $38 million , and $37 million for the years ended September 30, 2016 , 2015 , and 2014 , 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, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. In addition, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. Segregated assets consist of cash and cash equivalents or qualified securities. 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. In addition, RJ Bank may maintain 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. 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 collateral 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. 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”), certain other derivative instruments, brokered certificates of deposit, corporate loans 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 principal capital activities, 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, 2016 and 2015 . 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 level within the fair value hierarchy, specific valuation techniques, and other significant accounting policies pertaining to financial instruments presented in our Consolidated Statements of Financial Condition are described as follows: Level 1 measures: Trading instruments and trading instruments sold but not yet purchased (“Trading Securities”) are comprised primarily of the financial instruments held by our broker-dealer subsidiaries. These instruments are recorded at fair value with realized and 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. Level 2 measures: When Trading Securities 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, brokered certificates of deposit 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. A portion of our financial instruments classified on our Consolidated Statements of Financial Condition as a component of our available for sale securities are classified as Level 2 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the available for sale securities section that follows. We are a party to various derivative contracts that are classified as Level 2 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the derivatives contract section that follows. RJ Bank maintains a trading portfolio of certain corporate loans that it originates through the syndication market. These trading instruments are included in Trading Securities, are recognized as of the trade date, and are carried at fair value with the related unrealized and realized gains and losses reflected in net trading profit. These trading instruments are valued using quotes from a third party pricing service. These third party pricing service quotes are based on current market data provided by multiple dealers. The instruments are classified within Level 2 of the fair value hierarchy as the market inputs utilized by the third party pricing service are based upon observable inputs. We validate the third party pricing service quotes by comparing such prices to those provided by another external source. RJ Bank maintains certain loans held for sale, which are classified within Level 2 of the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the loans held for sale and allowances for losses section that follows. Level 3 measures: 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. A portion of our financial instruments classified on our Consolidated Statements of Financial Condition as a component of our available for sale securities are classified as Level 3 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the available for sale securities section that follows. We hold private equity investments that are classified as Level 3 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the private equity investments section that follows. 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. Included within Trading Securities are 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’s are entered into by RJ&A as a component of a hedging strategy, to hedge interest rate risk that it would otherwise be exposed to as part of a program its fixed income public finance operations offers to certain state and local housing finance agencies (“HFA”). Under this program, RJ&A enters into forward commitments to purchase Government National Mortgage Association (“GNMA”) or Federal National Home Mortgage Association (“FNMA”) MBS. The MBS securities are issued on behalf of various HFA clients and consist of the mortgages originated through their lending programs. RJ&A’s forward GNMA or FNMA MBS purchase commitments arise 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 or FNMA 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. 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.” These TBA securities are accounted for at fair value and are classified within Level 1 of the fair value hierarchy. The TBA securities may aggregate to either a net asset or net liability at any reporting date, depending upon market conditions. The offsetting purchase commitment is accounted for at fair value and is included in either other assets, or other liabilities, depending upon whether the TBA securities aggregate to a net asset or net liability. The fair value of the purchase commitment is classified within 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”). These securities are generally classified at the date of purchase as available for sale securities. The RJ Bank AFS Securities are used as part of RJ Bank’s interest rate risk and liquidity management strategies, and may be sold in response to changes in interest rates, changes in prepayment risks, or other factors. 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 average life of the security. 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 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 (loss) income and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”) on our Consolidated Statements of Financial Condition. 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 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 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 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 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 more representative of fair value under the current market conditions. Securities measured using these valuation techniques are generally classified within Level 2 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 Trading: We enter into interest rate swaps or futures contracts either as part of our fixed income business to facilitate client 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 including interest, are recorded in net trading profit within the Consolidated Statements of Income and Comprehensive 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. Matched Book: We also facilitate matched book derivative transactions through Raymond James Financial Products, LLC (“RJFP”) a non-broker-dealer subsidiary. RJFP enters into derivative transactions (primarily interest rate swaps) with clients. For every derivative transaction RJFP enters into with a client, it enters into an offsetting transaction with terms that mirror the client transaction, with a credit support provider who is a third party financial institution. Any collateral required to be exchanged under t |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisitions during fiscal year 2016 Mummert & Company Corporate Finance GmbH On June 1, 2016 , we completed our acquisition of all of the outstanding shares of Mummert. Mummert is a middle market M&A advisory firm, headquartered in Munich, Germany, that is focused primarily on the technology, industrial, healthcare, consumer and business services sectors. Mummert expands our investment banking capabilities in Europe, and operates within the corporate finance division of RJ&A included in our Capital Markets segment. For purposes of certain acquisition related financial reporting requirements, the Mummert acquisition is not considered a material acquisition. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of Mummert recorded as of the acquisition date at their respective fair values in our consolidated financial statements. Mummert’s results of operations have been included in our results prospectively from June 1, 2016. MacDougall, MacDougall & MacTier Inc. On August 31, 2016 , we completed our acquisition of all of the outstanding shares of 3Macs, an independent investment firm founded in 1849 and headquartered in Montreal, Quebec, Canada. As of the acquisition date, 3Macs had approximately 70 financial advisors with approximately $6 billion (Canadian) of client assets under administration. The 3Macs financial advisors will operate within a newly formed “3Macs” division of RJ Ltd. 3Macs is included in our Private Client Group segment. For purposes of certain acquisition related financial reporting requirements, the 3Macs acquisition is not considered a material acquisition. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of 3Macs recorded as of the acquisition date at their respective fair values in our consolidated financial statements. 3Macs results of operations have been included in our results prospectively from August 31, 2016 . U.S. Private Client Services unit of Deutsche Bank Wealth Management On September 6, 2016 (the “AB Closing Date”), RJ&A completed an acquisition of certain specified assets and the assumption of certain specified liabilities of Alex. Brown from Deutsche Bank Securities, Inc. As of the acquisition date, approximately 190 financial advisors with approximately $46 billion of client assets under administration joined a new Alex. Brown division of RJ&A. Alex. Brown is included in our Private Client Group segment. For purposes of certain acquisition related financial reporting requirements, the Alex. Brown acquisition is not considered a material acquisition. We accounted for this acquisition under the acquisition method of accounting with the specific assets acquired and liabilities of Alex. Brown we assumed recorded as of the acquisition date at their respective fair values in our consolidated financial statements. Alex. Brown’s results of operations have been included in our results of operations prospectively from September 6, 2016 . Other items of note After each of the 3Macs and Alex. Brown acquisitions were finalized and as part of financial advisor retention programs, RJ&A or RJ Ltd. funded retention loans to financial advisors who joined us at each respective closing date. RJ Ltd. funded approximately $13 million of retention loans to such 3Macs financial advisors, with a final maturity date five years from their date of issuance. RJ&A funded approximately $233 million of retention loans to such Alex. Brown financial advisors, with a final maturity seven years from their date of issuance. Under the terms of our purchase of Alex. Brown, in the event of the departure prior to March 7, 2017 of any Alex. Brown financial advisor who became a continuing employee of RJ&A as of the AB Closing Date, depending upon the circumstances surrounding such departure, Deutsche Bank Securities, Inc. may owe a portion of the consideration they received on the AB Closing Date back to RJ&A. We accounted for this potentially refundable contingent consideration element of the purchase consideration at fair value as of the closing date. As part of the acquisition of Alex. Brown, RJ&A assumed certain liabilities, including DBRSU awards. The DBRSU awards contain performance conditions based on Deutsche Bank and subsidiaries attaining certain financial results and will ultimately be settled in DB common stock, as traded on the NYSE, provided the performance metrics are achieved (see Notes 2 and 24 for additional information). On the acquisition date, RJ&A also executed employment agreements with certain key members of the Alex. Brown management team. As part of the acquisition of 3Macs, each 3Macs selling shareholder who became a continuing employee as of the closing date, executed an agreement that provided, in part, should they leave the employment of 3Macs during the five year period after the closing date, depending upon the circumstances surrounding such departure, they may be required to repay a portion of the consideration they received upon the sale of their 3Macs shares. We have accounted for this potentially refundable contingent consideration element of the purchase consideration, amounting to $24.7 million , as a prepaid compensation asset. This prepaid asset is being amortized as compensation expense over the five year post-combination service period associated with this provision. See Note 10 for additional information. The terms in each of the 3Macs and Alex. Brown purchase agreements provided for a review, subsequent to the closing date, of the estimated amounts of net acquired assets compared to the actual closing date net assets acquired, with an adjustment of the purchase price either payable to the sellers (in the case of higher actual net assets than estimated at closing), or due from the sellers (in the case of lower actual net assets than estimated at closing). We anticipate these reviews to be completed, and any consideration to be transferred between the parties as a result of the outcome of the review, during fiscal year 2017. As a part of the terms governing the Mummert acquisition, on certain future dates, there are earn-out computations to be performed or contingent consideration provisions that may apply which could result in additional payments to the sellers. See Note 21 for additional information regarding this contingent obligation. For the provisions that are unrelated to future employment considerations, we accounted for the contingent obligation at fair value as of the closing date. For the provisions where the ultimate payment of the contingent consideration are conditioned upon continued employment as of the measurement dates which are three and five years from the Mummert acquisition date, the obligations are being recognized as a component of our compensation expense over such periods. See Note 13 for information regarding the goodwill and identifiable intangible assets associated with these acquisitions. See Note 21 for additional information regarding the contingent consideration associated with the Mummert and Alex. Brown acquisitions. Acquisitions during fiscal year 2015 Cougar Global Investments Limited On April 30, 2015 , we completed our acquisition of Cougar, which at such time had more than $1 billion in assets under advisement. For purposes of certain acquisition related financial reporting requirements, the Cougar acquisition is not considered to be a material acquisition. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of Cougar recorded as of the acquisition date at their respective fair values in our consolidated financial statements. Cougar’s results of operations have been included in our results prospectively since April 30, 2015 , in our asset management segment. The Producers Choice LLC On May 28, 2015 , RJF entered into a definitive agreement to acquire TPC. On July 31, 2015 (the “TPC Closing Date”), we completed our acquisition of TPC. For purposes of certain acquisition related financial reporting requirements, the TPC acquisition is not considered to be a material acquisition. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of TPC recorded as of the acquisition date at their respective fair values in our consolidated financial statements. TPC’s results of operations have been included in our results prospectively since July 31, 2015, in our private client group segment. See Note 13 for information regarding the identifiable intangible assets and goodwill which resulted from these acquisitions. See Note 21 for additional information regarding the contingent consideration associated with the TPC acquisition. Acquisition-related expenses The acquisition-related expenses presented on our Consolidated Statements of Income and Comprehensive income for the year ended September 30, 2016 pertain to certain incremental expenses incurred in connection with the acquisitions described above. Our acquisition-related expenses associated with our fiscal year 2015 acquisitions were not significant. During the year ended September 30, 2016 we incurred the following acquisition-related expenses: Year ended September 30, 2016 (in thousands) Information systems integration costs $ 21,752 Legal and regulatory 8,334 Pre-AB Closing Date unrealized loss in the fair value of DB shares purchased to satisfy the DBRSU liability (1) 4,837 Severance 866 Travel and all other 4,917 Total acquisition-related expenses $ 40,706 (1) On various dates between the signing of the asset purchase agreement and the AB Closing Date, we purchased DB shares in open market transactions to serve as an economic hedge against a portion of the DBRSU liability to be assumed on the closing date. We hold these equity securities in other investments on our Consolidated Statements of Financial Condition and they are recorded at fair value. The unrealized loss we incurred on these shares prior to the AB Closing Date is included herein as a component of acquisition-related expenses as the sole reason we acquired such asset was to use in the settlement of a portion of the DBRSU liability, once assumed. For periods subsequent to the AB Closing Date, any unrealized gains/losses arising from the change in the fair value of such assets is reflected as a component of the compensation expense associated with the DBRSUs. See Note 24 for additional information about the DBRSU’s. |
CASH AND CASH EQUIVALENTS, ASSE
CASH AND CASH EQUIVALENTS, ASSETS SEGREGATED PURSUANT TO REGULATIONS AND DEPOSITS WITH CLEARING ORGANIZATIONS | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 (in thousands) Cash and cash equivalents: Cash in banks $ 1,649,593 $ 2,597,568 Money market fund investments 859 3,438 Total cash and cash equivalents (1) $ 1,650,452 $ 2,601,006 Assets segregated pursuant to federal regulations and other segregated assets (2) $ 4,889,584 $ 2,905,324 Deposits with clearing organizations Cash and cash equivalents $ 215,856 $ 177,787 Government and agency obligations 29,508 29,701 Total deposits with clearing organizations $ 245,364 $ 207,488 (1) The total amounts presented include cash and cash equivalents of $810 million and $1.216 billion as of September 30, 2016 and 2015 , respectively, which are either held directly by RJF in depository accounts at third party financial institutions, held in a depository account at RJ Bank (computed as the lesser of RJ Bank’s cash balance or the amount of RJF’s depository account balance), or are otherwise invested by one of our subsidiaries on behalf of RJF, all of which are available without restrictions. (2) Consists of cash maintained in accordance with Rule 15c3-3 under the Securities Exchange Act of 1934. RJ&A, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of its’ clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 Quoted prices (1) Significant other observable inputs (Level 2) (1) Significant unobservable inputs (Level 3) Netting adjustments (2) Balance as of (in thousands) Assets at fair value on a recurring basis: Trading instruments: Municipal and provincial obligations $ 480 $ 273,683 $ — $ — $ 274,163 Corporate obligations 10,000 122,885 — — 132,885 Government and agency obligations 6,412 43,186 — — 49,598 Agency MBS and CMOs 413 164,250 — — 164,663 Non-agency CMOs and ABS — 34,421 7 — 34,428 Total debt securities 17,305 638,425 7 — 655,737 Derivative contracts — 163,242 — (107,539 ) 55,703 Equity securities 14,529 1,500 — — 16,029 Brokered certificates of deposit — 35,206 — — 35,206 Other 555 3 3,572 — 4,130 Total trading instruments 32,389 838,376 3,579 (107,539 ) 766,805 Available for sale securities: Agency MBS and CMOs — 682,297 — — 682,297 Non-agency CMOs — 50,519 — — 50,519 Other securities 1,417 — — — 1,417 ARS: Municipals — — 25,147 — 25,147 Preferred securities — — 100,018 — 100,018 Total available for sale securities 1,417 732,816 125,165 — 859,398 Private equity investments not measured at NAV (3) — — 83,165 (4) — 83,165 Other investments (5) 296,146 257 441 — 296,844 Derivative instruments associated with offsetting matched book positions — 422,196 — — 422,196 Deposits with clearing organizations: Government and agency obligations 29,508 — — — 29,508 Other assets: Derivative contracts (6) — 2,016 — — 2,016 Other assets — — 2,448 (7) — 2,448 Total other assets — 2,016 2,448 — 4,464 Total assets at fair value on a recurring basis $ 359,460 $ 1,995,661 $ 214,798 $ (107,539 ) $ 2,462,380 Assets at fair value on a nonrecurring basis: Bank loans, net: Impaired loans $ — $ 23,146 $ 47,982 $ — $ 71,128 Loans held for sale (8) — 18,177 — — 18,177 Total bank loans, net — 41,323 47,982 — 89,305 OREO (9) — 679 — — 679 Total assets at fair value on a nonrecurring basis $ — $ 42,002 $ 47,982 $ — $ 89,984 (continued on next page) September 30, 2016 Quoted prices in active markets for identical assets (Level 1) (1) Significant other observable inputs (Level 2) (1) Significant unobservable inputs (Level 3) Netting adjustments (2) Balance as of (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 $ 1,161 $ — $ — $ — $ 1,161 Corporate obligations 1,283 29,791 — — 31,074 Government obligations 266,682 — — — 266,682 Agency MBS and CMOs 2,804 — — — 2,804 Total debt securities 271,930 29,791 — — 301,721 Derivative contracts — 151,694 — (142,859 ) 8,835 Equity securities 18,382 — — — 18,382 Total trading instruments sold but not yet purchased 290,312 181,485 — (142,859 ) 328,938 Derivative instruments associated with offsetting matched book positions — 422,196 — — 422,196 Trade and other payables: Derivative contracts (6) — 26,671 — — 26,671 Other liabilities — — 67 — 67 Total trade and other payables — 26,671 67 — 26,738 Accrued compensation, commissions and benefits: Derivative contracts (10) — 17,769 — — 17,769 Total liabilities at fair value on a recurring basis $ 290,312 $ 648,121 $ 67 $ (142,859 ) $ 795,641 The text of the footnotes to the table on the previous page are as follows: (1) We had $3 million in transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2016 . These transfers were a result of a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had $1 million in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2016 . These transfers were a result of an increase in the 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) For derivative transactions not cleared through an exchange, and where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists (see Note 19 for additional information regarding offsetting financial instruments). Deposits associated with derivative transactions cleared through an exchange are included in deposits with clearing organizations on our Consolidated Statements of Financial Condition. (3) Effective September 30, 2016 we adopted new accounting guidance related to the classification and disclosure of certain investments using the NAV as a practical expedient to measure the fair value of the investment. The amounts presented above do not include our investments measured at NAV, see Notes 1 , 2 , and the “investments in private equity measured at net asset value per share” section within this footnote, for additional information. (4) The portion of these investments we do not own is approximately $26 million as of September 30, 2016 and are included as a component of noncontrolling interest in our Consolidated Statements of Financial Condition. The weighted average portion we own is approximately $57 million or 68% of the total private equity investments of $83 million included in our Consolidated Statements of Financial Condition. (5) Other investments include $77 million of financial instruments that are related to obligations to perform under certain deferred compensation plans (see Notes 2 and 24 for further information regarding these plans), and DB shares with a fair value of $12 million as of September 30, 2016 which we hold as an economic hedge against the DBRSU obligation (see Notes 2 , 18 , and 24 for additional information). (6) Consists of derivatives arising from RJ Bank’s business operations, see Note 18 for additional information. (7) Includes the fair value of forward commitments to purchase GNMA or FNMA MBS arising from our fixed income public finance operations (see Notes 2 and 21 for additional information regarding the GNMA or FNMA MBS commitments). (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. (10) The balance reflects the DBRSUs which arose from our acquisition of Alex. Brown, see the discussion of the circumstances giving rise to this derivative in Note 3 . September 30, 2015 Quoted prices in active markets for identical assets (Level 1) (1) Significant other observable inputs (Level 2) (1) Significant unobservable inputs (Level 3) Netting adjustments (2) Balance as of (in thousands) Assets at fair value on a recurring basis: Trading instruments: Municipal and provincial obligations $ 17,318 $ 188,745 $ — $ — $ 206,063 Corporate obligations 2,254 92,907 156 — 95,317 Government and agency obligations 7,781 108,166 — — 115,947 Agency MBS and CMOs 253 117,317 — — 117,570 Non-agency CMOs and ABS — 46,931 9 — 46,940 Total debt securities 27,606 554,066 165 — 581,837 Derivative contracts — 132,707 — (90,621 ) 42,086 Equity securities 24,859 3,485 — — 28,344 Brokered certificates of deposit — 30,803 — — 30,803 Other 679 4,816 1,986 — 7,481 Total trading instruments 53,144 725,877 2,151 (90,621 ) 690,551 Available for sale securities: Agency MBS and CMOs — 302,195 — — 302,195 Non-agency CMOs — 71,369 — — 71,369 Other securities 1,402 — — — 1,402 ARS: Municipals — — 28,015 — 28,015 Preferred securities — — 110,749 — 110,749 Total available for sale securities 1,402 373,564 138,764 — 513,730 Private equity investments not measured at NAV (3) — — 77,435 (4) — 77,435 Other investments (5) 230,839 17,347 565 — 248,751 Derivative instruments associated with offsetting matched book positions — 389,457 — — 389,457 Deposits with clearing organizations: Government and agency obligations 29,701 — — — 29,701 Other assets: Derivative contracts (6) — 917 — — 917 Other assets — — 4,975 (7) — 4,975 Total other assets — 917 4,975 — 5,892 Total assets at fair value on a recurring basis $ 315,086 $ 1,507,162 $ 223,890 $ (90,621 ) $ 1,955,517 Assets at fair value on a nonrecurring basis: Bank loans, net Impaired loans $ — $ 28,082 $ 37,830 $ — $ 65,912 Loans held for sale (8) — 14,334 — — 14,334 Total bank loans, net — 42,416 37,830 — 80,246 OREO (9) — 671 — — 671 Total assets at fair value on a nonrecurring basis $ — $ 43,087 $ 37,830 $ — $ 80,917 (continued on next page) September 30, 2015 Quoted prices in active markets for identical assets (Level 1) (1) Significant other observable inputs (Level 2) (1) Significant unobservable inputs (Level 3) Netting adjustments (2) Balance as of (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 $ 17,966 $ 347 $ — $ — $ 18,313 Corporate obligations 167 33,017 — — 33,184 Government obligations 205,658 — — — 205,658 Agency MBS and CMOs 5,007 — — — 5,007 Total debt securities 228,798 33,364 — — 262,162 Derivative contracts — 109,120 — (88,881 ) 20,239 Equity securities 3,098 — — — 3,098 Other securities — 2,494 — — 2,494 Total trading instruments sold but not yet purchased 231,896 144,978 — (88,881 ) 287,993 Derivative instruments associated with offsetting matched book positions — 389,457 — — 389,457 Trade and other payables: Derivative contracts (6) — 7,545 — — 7,545 Other liabilities — — 58 — 58 Total trade and other payables — 7,545 58 — 7,603 Total liabilities at fair value on a recurring basis $ 231,896 $ 541,980 $ 58 $ (88,881 ) $ 685,053 (1) We had $1 million in transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2015 . These transfers were a result of a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had $2 million in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2015 . These transfers were a result of an increase in the 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) For derivative transactions not cleared through an exchange, and where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists (see Note 19 for additional information regarding offsetting financial instruments). Deposits associated with derivative transactions cleared through an exchange are included in deposits with clearing organizations on our Consolidated Statements of Financial Condition. (3) Effective September 30, 2016 we adopted new accounting guidance related to the classification and disclosure of certain investments using the NAV as a practical expedient to measure the fair value of the investment. These prior year amounts reflect the effect of reclassifications to conform the prior year to current year presentation. Accordingly, the amounts presented above do not include our investments measured at NAV, see Notes 1 , 2 , and the “investments in private equity measured at net asset value per share” section within this footnote, for additional information. (4) The portion of these investments we do not own is approximately $19 million as of September 30, 2015 and are included as a component of noncontrolling interest in our Consolidated Statements of Financial Condition. The weighted average portion we own is approximately $58 million or 75% of the total private equity investments of $77 million included in our Consolidated Statements of Financial Condition. (5) Other investments include $106 million of financial instruments that are related to obligations to perform under certain deferred compensation plans (see Notes 2 and 24 for further information regarding these plans). (6) Consists of derivatives arising from RJ Bank’s business operations, see Note 18 for additional information. (7) Includes the fair value of forward commitments to purchase GNMA or FNMA MBS arising from our fixed income public finance operations (see Notes 2 and 21 for additional information). (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. The adjustment to fair value of the nonrecurring fair value measures for the year ended September 30, 2016 resulted in a $12 million additional provision for loan losses and unfunded lending commitment reserve expense relating to impaired loans, and $100 thousand in other losses relating to loans held for sale and OREO. The adjustment to fair value of the nonrecurring fair value measures for the year ended September 30, 2015 resulted in a $900 thousand additional provision for loan losses relating to impaired loans and $300 thousand in other losses relating to loans held for sale and OREO. 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, 2016 Level 3 assets at fair value (in thousands) Financial assets Financial liabilities Trading instruments Available for sale securities Private equity, other investments and other assets Payables- trade and other Corporate Obligations Non- agency CMOs & ABS Other ARS – ARS - Private equity investments not measured at NAV Other investments Other assets Other liabilities Fair value September 30, 2015 $ 156 $ 9 $ 1,986 $ 28,015 $ 110,749 $ 77,435 $ 565 $ 4,975 $ (58 ) Total gains (losses) for the year: Included in earnings (137 ) — (521 ) 133 136 11,517 (1) 9 (2,527 ) (9 ) Included in other comprehensive income — — — (1,393 ) (9,656 ) — — — — Purchases and contributions 75 — 61,887 — — 11,271 8 — — Sales (94 ) — (59,780 ) (1,583 ) (1,211 ) (18 ) — — — Redemptions by issuer — — — (25 ) — — — — — Distributions — (2 ) — — — (17,040 ) (141 ) — — Transfers: (2) Into Level 3 — — — — — — — — — Out of Level 3 — — — — — — — — — Fair value September 30, 2016 $ — $ 7 $ 3,572 $ 25,147 $ 100,018 $ 83,165 $ 441 $ 2,448 $ (67 ) 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 $ (225 ) $ (1,348 ) $ (9,574 ) $ 11,517 $ 2 $ (2,527 ) $ — (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 $3 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $9 million . (2) 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, 2015 Financial assets Financial liabilities Trading instruments Private equity, other investments, other receivables and other assets Payables-trade and other Corporate Obligations Non- agency CMOs & ABS Equity securities Other ARS – ARS - Private equity investments not measured at NAV (1) Other investments Other assets Other liabilities Fair value September 30, 2014 $ — $ 11 $ 44 $ 2,309 $ 86,696 $ 114,039 $ 75,980 $ 1,731 $ 787 $ (58 ) Total gains (losses) for the year: Included in earnings (40 ) 1 5 (180 ) 11,042 25 8,723 (2) 57 4,188 — Included in other comprehensive income — — — — (6,112 ) (3,065 ) — — — — Purchases and contributions 33 — 20 34,478 — — 1,226 — — — Sales (31 ) — — (34,621 ) (63,611 ) — (4,307 ) — — — Redemptions by issuer — — — — — (250 ) — (681 ) — — Distributions — (3 ) — — — — (4,187 ) (542 ) — — Transfers: (3) Into Level 3 209 — — — — — — — — — Out of Level 3 (15 ) — (69 ) — — — — — — — Fair value September 30, 2015 $ 156 $ 9 $ — $ 1,986 $ 28,015 $ 110,749 $ 77,435 $ 565 $ 4,975 $ (58 ) 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 $ (40 ) $ 1 $ — $ 11 $ (910 ) $ (3,065 ) $ 7,252 $ (57 ) $ 4,203 $ — (1) Effective September 30, 2016 we adopted new accounting guidance related to the classification and disclosure of certain investments using the NAV as a practical expedient to measure the fair value of the investment. These prior year amounts reflect the effect of reclassifications to conform the prior year to current year presentation. Accordingly, the amounts presented above do not include our investments measured at NAV, see Notes 1 , 2 , and the “investments in private equity measured at net asset value per share” section within this footnote, for additional information. (2) 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 $7 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 $2 million . (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, 2014 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 Non- agency CMOs & ABS Equity securities Other Non- agency CMOs ARS – ARS - Private equity investments not measured at NAV (1) Other investments Other receivables Other assets Other liabilities Fair value September 30, 2013 $ 14 $ 35 $ 3,956 $ 78 $ 130,934 $ 110,784 $ 82,390 $ 4,607 $ 2,778 $ 15 $ (60 ) Total gains (losses) for the year: Included in earnings (1 ) 6 (371 ) (27 ) 7,046 44 4,143 174 (2,778 ) 772 2 Included in other comprehensive income — — — 22 (403 ) 3,536 — — — — — Purchases and contributions — 103 18,628 — — — 975 63 — — — Sales — (98 ) (19,904 ) (38 ) (23,355 ) — (7,076 ) (2,698 ) — — — Redemptions by issuer — — — — (27,526 ) (325 ) — (64 ) — — — Distributions (2 ) — — (35 ) — — (11,741 ) (351 ) — — — Transfers: (2) — Into Level 3 — — — — — — 7,289 (3) — — — — Out of Level 3 — (2 ) — — — — — — — — — Fair value September 30, 2014 $ 11 $ 44 $ 2,309 $ — $ 86,696 $ 114,039 $ 75,980 $ 1,731 $ — $ 787 $ (58 ) 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 $ 20 $ 6 $ (7 ) $ — $ (403 ) $ 3,536 $ 1,235 $ 267 $ — $ 772 $ — (1) Effective September 30, 2016 we adopted new accounting guidance related to the classification and disclosure of certain investments using the NAV as a practical expedient to measure the fair value of the investment. These prior year amounts reflect the effect of reclassifications to conform the prior year to current year presentation. Accordingly, the amounts presented above do not include our investments measured at NAV, see Notes 1 , 2 , and the “investments in private equity measured at net asset value per share” section within this footnote, for additional information. (2) Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. (3) The transfers into Level 3 were comprised of transfers of balances previously included in other receivables on our Consolidated Statements of Financial Condition. As of September 30, 2016 , 8% of our assets and 3% 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, 2016 represent 9% of our assets measured at fair value. In comparison as of September 30, 2015 , 7% and 3% 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, 2015 represented 11% of our assets measured at fair value. Level 3 instruments as a percentage of total financial instruments decreased by 3% compared to September 30, 2015 , primarily as a result of the decrease in fair value of our ARS portfolio, offset by an increase in the fair value of our private equity investments not measured at NAV. Gains and losses related to Level 3 recurring fair value measurements included in earnings are presented in net trading profit, other revenues and other comprehensive income in our Consolidated Statements of Income and Comprehensive Income as follows: Net trading profits Other revenues Other comprehensive income (in thousands) For the year ended September 30, 2016 Total (losses) gains included in earnings $ (658 ) $ 9,259 $ (11,049 ) Change in unrealized (losses) gains for assets held at the end of the year $ (223 ) $ 8,992 $ (10,922 ) For the year ended September 30, 2015 Total (losses) gains included in earnings $ (214 ) $ 24,035 $ (9,177 ) Change in unrealized (losses) gains for assets held at the end of the year $ (28 ) $ 11,398 $ (3,975 ) For the year ended September 30, 2014 Total (losses) gains included in earnings $ (366 ) $ 9,376 $ 3,155 Change in unrealized gains (losses) for assets held at the end of the year $ 19 $ 2,274 $ 3,133 Quantitative information about level 3 fair value measurements The significant assumptions used in the valuation of level 3 financial instruments are as follows (the table that follows includes the significant majority of the financial instruments we hold that are classified as level 3 measures): Level 3 financial instrument Fair value at September 30, 2016 (in thousands) Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements: Available for sale securities: ARS: Municipals - issuer is a municipality $ 10,413 Discounted cash flow Average discount rate (a) 5.17% - 6.36% (5.77%) Average interest rates applicable to future interest income on the securities (b) 1.23% - 1.83% (1.53%) Prepayment year (c) 2019 - 2026 (2022) Municipals - tax-exempt preferred securities $ 14,734 Discounted cash flow Average discount rate (a) 4.62% - 5.62% (5.12%) Average interest rates applicable to future interest income on the securities (b) 0.91% - 0.91% (0.91%) Prepayment year (c) 2016 - 2021 (2021) Preferred securities - taxable $ 100,018 Discounted cash flow Average discount rate (a) 4.87% - 6.34% (5.56%) Average interest rates applicable to future interest income on the securities (b) 1.24% - 2.51% (1.34%) Prepayment year (c) 2016 - 2021 (2021) Private equity investments (not measured at NAV): $ 56,746 Income or market approach: Scenario 1 - income approach - discounted cash flow Discount rate (a) 13% - 20% (17.9%) Terminal growth rate of cash flows 3% - 3% (3%) Terminal year 2019 - 2021 (2020) Scenario 2 - market approach - market multiple method EBITDA Multiple (d) 5.25 - 7.5 (6.3) Weighting assigned to outcome of scenario 1/scenario 2 81%/19% $ 26,419 Transaction price or other investment-specific events (e) Not meaningful (e) Not meaningful (e) Nonrecurring measurements: Impaired loans: residential $ 21,909 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.24 yrs.) Impaired loans: corporate $ 26,073 Appraisal or discounted cash flow value (f) Not meaningful (f) Not meaningful (f) The text of the footnotes to the table above are on the following page. The text of the footnotes to the table on the previous page are as follows: (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 path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (c) Assumed year of at least a partial redemption of the outstanding security by the issuer. (d) Represents amounts used when we have determined that market participants would use such multiples when pricing the investments. (e) Certain private equity investments are valued initially at the transaction price until either our annual review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, when any of which indicate that a change in the carrying values of these investments is appropriate. (f) The valuation techniques used for the impaired corporate loan portfolio are appraisals less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. 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. Investments in private equity measured at net asset value per share As a practical expedient, we utilize NAV or its equivalent to determine the recorded value of a portion of our private equity portfolio. We utilize NAV when the fund investment does not have a readily determinable fair value and the NAV of the fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value. Our private equity portfolio includes various direct and third party private equity investments, employee investment funds, and various private equity funds which we sponsor. The portfolio is primarily invested in a broad range of industries including leveraged buyouts, growth capital, distressed capital, venture capital and mezzanine capital. Due to the closed-end nature of certain of our fund investments, such investments cannot be redeemed directly with the funds; our investment is monetized through distributions received through the liquidation of the underlying assets of those funds. The recorded value and unfunded commitments related to our private equity portfolio is as follows: Unfunded Commitment Recorded Value RJF (1) Noncontrolling Interest (2) Total (in thousands) September 30, 2016 Private equity investments at NAV $ 111,469 $ 27,542 $ 3,001 $ 30,543 Private equity investments at fair value 83,165 Total private equity investments $ 194,634 September 30, 2015 Private equity investments at NAV $ 131,653 $ 35,606 $ 3,326 $ 38,932 Private equity investments at fair value 77,435 Total private equity investments $ 209,088 (1) Represents RJF’s portion of unfunded commitments related to our private equity portfolio. (2) Unfunded commitments related to the portion of our private equity portfolio owned by others. Such commitments are required to be funded by the holders of the noncontrolling interests. While we anticipate the liquidation of these investments to take place over nine years , many of these fund investments meet the definition of prohibited “covered funds” as defined by the Volcker Rule of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In order to be compliant with the Volcker Rule by its’ July 2017 conformance period, it is possible that we may be required to sell our interests in such funds. If that occurs, we may receive a value for our interests that is less than the carrying value as there is a limited secondary market for these investments and we may be unable to sell them in orderly transactions. 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, 2016 and 2015 , we have elected not to choose the fair value option for any of our financial assets or liabilities not already recorded at fair value. Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated Statements of Financial Condition at fair value 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, 2016 and 2015 is not carried at fair value, as computed in accordance with the GAAP definition of fair value (an exit price concept, refer to Note 2 for further discussion), on our Consolidated Statements of Financial Condition: Short-term financial instruments: The carrying value of short-term financial instrum |
TRADING INSTRUMENTS AND TRADING
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 September 30, 2015 Trading instruments Instruments sold but not yet purchased Trading instruments Instruments sold but not yet purchased (in thousands) Municipal and provincial obligations $ 274,163 $ 1,161 $ 206,063 $ 18,313 Corporate obligations 132,885 31,074 95,317 33,184 Government and agency obligations 49,598 266,682 115,947 205,658 Agency MBS and CMOs 164,663 2,804 117,570 5,007 Non-agency CMOs and ABS 34,428 — 46,940 — Total debt securities 655,737 301,721 581,837 262,162 Derivative contracts (1) 55,703 8,835 42,086 20,239 Equity securities 16,029 18,382 28,344 3,098 Brokered certificates of deposit 35,206 — 30,803 — Other 4,130 — 7,481 2,494 Total $ 766,805 $ 328,938 $ 690,551 $ 287,993 (1) Represents the derivative contracts held for trading purposes. These balances do not include all derivative instruments. See Note 18 for further information regarding all of our derivative transactions, and see Note 19 for additional information regarding offsetting financial instruments. 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, 2016 | |
Available-for-sale Securities [Abstract] | |
AVAILABLE FOR SALE SECURITIES | AVAILABLE FOR SALE SECURITIES Available for sale securities are comprised of MBS and CMOs owned by RJ Bank and ARS owned by one of our non-broker-dealer subsidiaries. There were $8.5 million of proceeds, and a gain of $100 thousand which is included in other revenues on our Consolidated Statements of Income and Comprehensive Income, from the sale of available for sale securities held by RJ Bank during the year ended September 30, 2016 . During the year ended September 30, 2015 , there were $12.2 million in proceeds, and a loss of $600 thousand , from sales of available for sale securities held by RJ Bank. During the year ended September 30, 2014 , there were $26.6 million in proceeds, and a gain of $300 thousand , from the sale of available for sale securities owned by RJ Bank. Certain securities in the ARS portion of the available for sale securities portfolio have been redeemed by their issuer or sold in market transactions. Sale or redemption activities within the ARS portion of the portfolio resulted in aggregate proceeds of $2.8 million , and a gain of $300 thousand which is included in other revenues on our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2016 . During the year ended September 30, 2015 , sales or redemption activities within the ARS portion of the available for sale securities portfolio resulted in proceeds of $63.9 million and a gain of $11.1 million . Nearly all of the ARS proceeds as well as the gain on sale arising during the year ended September 30, 2015 resulted from the sale of Jefferson County, Alabama Limited Obligation School Warrants ARS. During the year ended September 30, 2014 , sales or redemption activities within the ARS portion of the available for sale securities portfolio resulted in proceeds of $51.2 million , and a gain of $7.1 million , which includes $26.5 million in proceeds and a gain of $5.5 million , from the redemption of Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS. The amortized cost and fair values of available for sale securities are as follows: Cost basis Gross unrealized gains Gross unrealized losses Fair value (in thousands) September 30, 2016 Available for sale securities: Agency MBS and CMOs $ 680,341 $ 2,512 $ (556 ) $ 682,297 Non-agency CMOs (1) 53,427 9 (2,917 ) 50,519 Other securities 1,575 — (158 ) 1,417 Total RJ Bank available for sale securities 735,343 2,521 (3,631 ) 734,233 Auction rate securities: Municipal obligations 27,491 14 (2,358 ) 25,147 Preferred securities 103,226 — (3,208 ) 100,018 Total auction rate securities 130,717 14 (5,566 ) 125,165 Total available for sale securities $ 866,060 $ 2,535 $ (9,197 ) $ 859,398 September 30, 2015 Available for sale securities: Agency MBS and CMOs $ 301,001 $ 1,538 $ (344 ) $ 302,195 Non-agency CMOs (2) 75,678 18 (4,327 ) 71,369 Other securities 1,575 — (173 ) 1,402 Total RJ Bank available for sale securities 378,254 1,556 (4,844 ) 374,966 Auction rate securities: Municipal obligations 28,966 576 (1,527 ) 28,015 Preferred securities 104,302 6,447 — 110,749 Total auction rate securities 133,268 7,023 (1,527 ) 138,764 Total available for sale securities $ 511,522 $ 8,579 $ (6,371 ) $ 513,730 September 30, 2014 Available for sale securities: Agency MBS and CMOs $ 267,927 $ 822 $ (1,029 ) $ 267,720 Non-agency CMOs (3) 98,946 56 (7,084 ) 91,918 Other securities 1,575 341 — 1,916 Total RJ Bank available for sale securities 368,448 1,219 (8,113 ) 361,554 Auction rate securities: Municipal obligations 81,535 6,240 (1,079 ) 86,696 Preferred securities 104,526 9,513 — 114,039 Total auction rate securities 186,061 15,753 (1,079 ) 200,735 Total available for sale securities $ 554,509 $ 16,972 $ (9,192 ) $ 562,289 (1) As of September 30, 2016 , the non-credit portion of unrealized losses related to non-agency CMOs with previously recorded OTTI was $2.3 million (before taxes) recorded in AOCI. See Note 22 for additional information. (2) As of September 30, 2015 , the non-credit portion of unrealized losses related to non-agency CMOs with previously recorded OTTI was $3.6 million (before taxes) recorded in AOCI. (3) As of September 30, 2014 , the non-credit portion of unrealized losses related to non-agency CMOs with previously recorded OTTI was $6.1 million (before taxes) recorded in AOCI. See Note 5 for additional information regarding the fair value of available for sale securities. The contractual maturities, amortized cost, carrying values and current yields for our available for sale securities are as presented below. Since RJ Bank’s available for sale securities (MBS & CMOs) are backed by mortgages, actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. Expected maturities of ARS may differ significantly from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2016 Within one year After one but within five years After five but within ten years After ten years Total ($ in thousands) Agency MBS & CMOs: Amortized cost $ 1 $ 27,476 $ 100,033 $ 552,831 $ 680,341 Carrying value $ 1 $ 27,799 $ 100,729 $ 553,768 $ 682,297 Weighted-average yield 0.54 % 1.66 % 1.46 % 1.49 % 1.49 % Non-agency CMOs: Amortized cost $ — $ — $ — $ 53,427 $ 53,427 Carrying value $ — $ — $ — $ 50,519 $ 50,519 Weighted-average yield — — — 2.56 % 2.56 % Other securities: Amortized cost $ — $ — $ — $ 1,575 $ 1,575 Carrying value $ — $ — $ — $ 1,417 $ 1,417 Weighted-average yield — — — — — Sub-total agency MBS & CMOs, non-agency CMOs and other securities: Amortized cost $ 1 $ 27,476 $ 100,033 $ 607,833 $ 735,343 Carrying value $ 1 $ 27,799 $ 100,729 $ 605,704 $ 734,233 Weighted-average yield 0.54 % 1.66 % 1.46 % 1.58 % 1.57 % Auction rate securities Municipal obligations: Amortized cost $ — $ — $ — $ 27,491 $ 27,491 Carrying value $ — $ — $ — $ 25,147 $ 25,147 Weighted-average yield — — — 1.77 % 1.77 % Preferred securities: Amortized cost $ — $ — $ — $ 103,226 $ 103,226 Carrying value $ — $ — $ — $ 100,018 $ 100,018 Weighted-average yield — — — 0.87 % 0.87 % Sub-total auction rate securities: Amortized cost $ — $ — $ — $ 130,717 $ 130,717 Carrying value $ — $ — $ — $ 125,165 $ 125,165 Weighted-average yield — — — 1.05 % 1.05 % Total available for sale securities: Amortized cost $ 1 $ 27,476 $ 100,033 $ 738,550 $ 866,060 Carrying value $ 1 $ 27,799 $ 100,729 $ 730,869 $ 859,398 Weighted-average yield 0.54 % 1.66 % 1.46 % 1.49 % 1.49 % 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, 2016 Less than 12 months 12 months or more Total Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses (in thousands) Agency MBS and CMOs $ 208,880 $ (361 ) $ 28,893 $ (195 ) $ 237,773 $ (556 ) Non-agency CMOs 4,256 (21 ) 44,137 (2,896 ) 48,393 (2,917 ) Other securities 1,417 (158 ) — — 1,417 (158 ) ARS municipal obligations 13,204 (697 ) 11,695 (1,661 ) 24,899 (2,358 ) ARS preferred securities 98,489 (3,208 ) — — 98,489 (3,208 ) Total $ 326,246 $ (4,445 ) $ 84,725 $ (4,752 ) $ 410,971 $ (9,197 ) September 30, 2015 Less than 12 months 12 months or more Total Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses (in thousands) Agency MBS and CMOs $ 3,488 $ (37 ) $ 29,524 $ (307 ) $ 33,012 $ (344 ) Non-agency CMOs — — 65,854 (4,327 ) 65,854 (4,327 ) Other securities 1,402 (173 ) — — 1,402 (173 ) ARS municipal obligations 225 (3 ) 11,627 (1,524 ) 11,852 (1,527 ) Total $ 5,115 $ (213 ) $ 107,005 $ (6,158 ) $ 112,120 $ (6,371 ) 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 Home Loan Mortgage Corporation (“FHLMC”), FNMA, as well the GNMA, guarantee the contractual cash flows of the agency MBS and CMOs. At September 30, 2016 , of the 38 U.S. government-sponsored enterprise MBS and CMOs in an unrealized loss position, 32 were in a continuous unrealized loss position for less than 12 months and six 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 it is recorded as OTTI. The significant assumptions used in the cash flow analysis of non-agency CMOs are as follows: September 30, 2016 Range Weighted- average (1) Default rate 0% - 8.2% 3.07% Loss severity 0% - 53.8% 32.09% Prepayment rate 6.5% - 19.6% 12.22% (1) Represents the expected activity for the next twelve months. At September 30, 2016 , 11 of the 13 non-agency CMOs were in a continuous unrealized loss position. Ten of these securities were in that position for 12 months or more and one was 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, 2016 reflect the uncertainty in the markets for these instruments. ARS Our cost basis in the ARS we hold is the fair value of the securities in the period in which we acquired them. The par value of the ARS we hold as of September 30, 2016 is $152.9 million . 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. All of our ARS securities are evaluated for OTTI on a quarterly basis. As of September 30, 2016 , there were 37 ARS preferred securities with a fair value less than their cost basis, indicating potential impairment. We analyzed the credit ratings associated with each of these securities as an indicator of potential credit impairment, and including subsequent rating changes, determined that all of these securities maintained investment grade ratings by at least one rating agency. We have the ability and intent to hold these securities to maturity and expect to recover their entire cost basis and therefore concluded that none of the potential impairment within our ARS preferred securities portfolio is related to potential credit loss. Within our municipal ARS holdings as of September 30, 2016 , there were nine municipal ARS with a fair value less than their cost basis, indicating potential impairment. We analyzed the credit ratings associated with these securities as an indicator of potential credit impairment, and including subsequent ratings changes, determined that all of these securities maintained investment grade ratings by at least one rating agency. We have the ability and intent to hold these securities to maturity and expect to recover their entire cost basis and therefore concluded that none of the potential impairment within our municipal ARS portfolio is related to potential credit loss. 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, as of September 30, 2016 we do not expect to recover the entire amortized cost basis of certain securities within the non-agency CMO available for sale security portfolio. 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, 2016 2015 2014 (in thousands) Amount related to credit losses on securities we held at the beginning of the year $ 11,847 $ 18,703 $ 28,217 Decreases to the amount related to credit loss for securities sold during the year (3,740 ) (6,856 ) (9,541 ) Additional increases to the amount related to credit loss for which an OTTI was previously recognized — — 27 Amount related to credit losses on securities we held at the end of the year $ 8,107 $ 11,847 $ 18,703 |
RECEIVABLES FROM AND PAYABLES T
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS | 12 Months Ended |
Sep. 30, 2016 | |
Receivables From and Payables To Brokerage Clients [Abstract] | |
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS | RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS The information presented below is exclusive of the transactions and balances that arise between RJ Bank and clients of our broker-dealer subsidiaries. Such transactions include those arising from the RJBDP program (as hereinafter defined in Note 14 ) and securities that serve as collateral under RJ Bank’s SBL program (see Note 9 for additional information). 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 included within any balances reflected on our Consolidated Statements of Financial Condition (see Note 19 for information regarding our use of a portion of this collateral in certain borrowing transactions). The amount receivable from clients is as follows: September 30, 2016 2015 (in thousands) Brokerage client receivables $ 2,715,428 $ 2,185,586 Allowance for doubtful accounts (646 ) (290 ) Brokerage client receivables, net $ 2,714,782 $ 2,185,296 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, 2016 2015 Brokerage client payables: (in thousands) Interest bearing $ 4,893,813 $ 4,148,952 Non-interest bearing 1,550,858 522,121 Total brokerage client payables $ 6,444,671 $ 4,671,073 |
BANK LOANS, NET
BANK LOANS, NET | 12 Months Ended |
Sep. 30, 2016 | |
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, tax-exempt loans, SBL, as well as commercial and residential real estate loans. These receivables are collateralized by first or second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue or are unsecured. We segregate our loan portfolio into six loan portfolio segments: C&I, CRE, CRE construction, tax-exempt, residential mortgage, and SBL. 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, 2016 2015 2014 Balance % Balance % Balance % ($ in thousands) Loans held for sale, net (1) $ 214,286 1 % $ 119,519 1 % $ 45,988 — Loans held for investment: Domestic: C&I loans 6,402,675 42 % 5,893,631 44 % 5,378,592 49 % CRE construction loans 107,437 1 % 126,402 1 % 76,733 1 % CRE loans 2,188,652 14 % 1,679,332 13 % 1,415,093 13 % Tax-exempt loans 740,944 5 % 484,537 4 % 122,218 1 % Residential mortgage loans 2,439,286 16 % 1,959,786 15 % 1,749,513 16 % SBL 1,903,930 12 % 1,479,562 11 % 1,021,358 9 % Foreign: C&I loans 1,067,698 7 % 1,034,387 8 % 1,043,755 9 % CRE construction loans 15,281 — 35,954 — 17,462 — CRE loans 365,419 2 % 374,822 3 % 274,070 2 % Residential mortgage loans 2,283 — 2,828 — 2,234 — SBL 897 — 1,942 — 2,390 — Total loans held for investment 15,234,502 13,073,183 11,103,418 Net unearned income and deferred expenses (40,675 ) (32,424 ) (37,533 ) Total loans held for investment, net (1) 15,193,827 13,040,759 11,065,885 Total loans held for sale and investment 15,408,113 100 % 13,160,278 100 % 11,111,873 100 % Allowance for loan losses (197,378 ) (172,257 ) (147,574 ) Bank loans, net $ 15,210,735 $ 12,988,021 $ 10,964,299 September 30, 2013 2012 Balance % Balance % ($ in thousands) Loans held for sale, net (1) $ 110,292 1 % $ 160,515 2 % Loans held for investment: Domestic: C&I loans 4,439,668 50 % 4,553,061 55 % CRE construction loans 38,964 — 26,360 1 % CRE loans 1,075,986 12 % 828,414 10 % Residential mortgage loans 1,743,787 20 % 1,690,465 21 % SBL 554,210 6 % 350,770 4 % Foreign: C&I loans 806,337 9 % 465,770 6 % CRE construction loans 21,876 — 23,114 — CRE loans 207,060 2 % 108,036 1 % Residential mortgage loans 1,863 — 1,521 — SBL 1,595 — 1,725 — Total loans held for investment 8,891,346 8,049,236 Net unearned income and deferred expenses (43,936 ) (70,698 ) Total loans held for investment, net (1) 8,847,410 7,978,538 Total loans held for sale and investment 8,957,702 100 % 8,139,053 100 % Allowance for loan losses (136,501 ) (147,541 ) Bank loans, net $ 8,821,201 $ 7,991,512 (1) Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs. At September 30, 2016 , the FHLB had a blanket lien on RJ Bank’s residential mortgage loan portfolio as security for the repayment of certain borrowings. See Note 15 for more information regarding borrowings from the FHLB. Loans held for sale RJ Bank originated or purchased $1.8 billion , $1.2 billion and $1.0 billion of loans held for sale during the years ended September 30, 2016 , 2015 and 2014 , respectively. Proceeds from the sale of held for sale loans amounted to $383 million , $213 million and $189 million for the years ended September 30, 2016 , 2015 and 2014 , respectively. Net gains resulting from such sales amounted to $1.7 million , $1.7 million and $800 thousand for the years ended September 30, 2016 , 2015 and 2014 , 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 $300 thousand , $400 thousand and $400 thousand for the years ended September 30, 2016 , 2015 and 2014 , respectively. Purchases and sales of loans held for investment The following table presents purchases and sales of any loans held for investment by portfolio segment: C&I CRE Residential mortgage Total (in thousands) Year ended September 30, 2016 Purchases $ 457,503 $ 24,869 $ 371,710 (2) $ 854,082 Sales (1) $ 172,968 $ — $ — $ 172,968 Year ended September 30, 2015 Purchases $ 792,921 $ — $ 220,311 (3) $ 1,013,232 Sales (1) $ 108,983 $ — $ — $ 108,983 Year ended September 30, 2014 Purchases $ 536,167 $ 5,000 $ 29,667 $ 570,834 Sales (1) $ 219,914 $ — $ — $ 219,914 (1) Represents the recorded investment of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. Corporate loan sales generally occur as part of a loan workout situation. (2) Includes the purchase from other financial institutions of residential mortgage loans totaling $294 million in principal loan balance. (3) Includes the purchase from another financial institution of residential mortgage loans totaling $207 million in principal loan balance. Aging analysis of loans held for investment The following table presents an analysis of the payment status of loans held for investment: 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total loans held for investment (2) (in thousands) As of September 30, 2016: C&I loans $ — $ — $ — $ 35,194 $ 7,435,179 $ 7,470,373 CRE construction loans — — — — 122,718 122,718 CRE loans — — — 4,230 2,549,841 2,554,071 Tax-exempt loans — — — — 740,944 740,944 Residential mortgage loans: First mortgage loans 1,766 — 1,766 41,746 2,377,357 2,420,869 Home equity loans/lines — — — 37 20,663 20,700 SBL — — — — 1,904,827 1,904,827 Total loans held for investment, net $ 1,766 $ — $ 1,766 $ 81,207 $ 15,151,529 $ 15,234,502 As of September 30, 2015: C&I loans $ 163 $ — $ 163 $ — $ 6,927,855 $ 6,928,018 CRE construction loans — — — — 162,356 162,356 CRE loans — — — 4,796 2,049,358 2,054,154 Tax-exempt loans — — — — 484,537 484,537 Residential mortgage loans: First mortgage loans 2,906 — 2,906 47,504 1,891,384 1,941,794 Home equity loans/lines 30 — 30 319 20,471 20,820 SBL — — — — 1,481,504 1,481,504 Total loans held for investment, net $ 3,099 $ — $ 3,099 $ 52,619 $ 13,017,465 $ 13,073,183 (1) Includes $54 million and $22 million of nonaccrual loans at September 30, 2016 and 2015 , respectively, which are performing pursuant to their contractual terms. (2) Excludes any net unearned income and deferred expenses. Nonperforming loans represent those loans on nonaccrual status, troubled debt restructurings, and accruing loans which are 90 days or more past due and in the process of collection. 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 $2 million , $1 million and $4 million for the years ended September 30, 2016 , 2015 and 2014 , respectively. The interest income recognized on nonperforming loans was $1 million in each of the years ended September 30, 2016 , 2015 and 2014 . The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings are in process is $21 million and $25 million at September 30, 2016 and 2015 , respectively. Impaired loans and troubled debt restructurings The following table provides a summary of RJ Bank’s impaired loans: September 30, 2016 2015 Gross recorded investment Unpaid principal balance Allowance for losses Gross recorded investment Unpaid principal balance Allowance for losses (in thousands) Impaired loans with allowance for loan losses: (1) C&I loans $ 35,194 $ 35,872 $ 13,351 $ 10,599 $ 11,204 $ 1,132 Residential - first mortgage loans 30,393 41,337 3,147 35,442 48,828 4,014 Total 65,587 77,209 16,498 46,041 60,032 5,146 Impaired loans without allowance for loan losses: (2) CRE loans 4,230 11,611 — 4,796 11,611 — Residential - first mortgage loans 17,809 26,486 — 20,221 29,598 — Total 22,039 38,097 — 25,017 41,209 — Total impaired loans $ 87,626 $ 115,306 $ 16,498 $ 71,058 $ 101,241 $ 5,146 (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 $4 million CRE, and $28 million residential first mortgage TDR’s at September 30, 2016 and $5 million CRE, $11 million C&I, and $33 million residential first mortgage TDR’s at September 30, 2015 . 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, 2016 2015 2014 (in thousands) Average impaired loan balance: C&I loans $ 18,112 $ 11,311 $ 6,183 CRE loans 4,474 14,694 23,416 Residential mortgage loans: First mortgage loans 51,554 59,049 70,370 Home equity loans/lines — — 21 Total $ 74,140 $ 85,054 $ 99,990 Interest income recognized: Residential mortgage loans: First mortgage loans $ 1,413 $ 1,426 $ 1,592 Total $ 1,413 $ 1,426 $ 1,592 During the years ended September 30, 2016 , 2015 , and 2014 , RJ Bank granted concessions to borrowers having financial difficulties, for which the resulting modification was deemed a TDR. These concessions granted for the respective first mortgage residential loans were interest rate reductions, amortization and maturity date extensions, capitalization of past due payments, or release of liability ordered under Chapter 7 bankruptcy not reaffirmed by the borrower. The concessions granted for the corporate loans were amortization and maturity date extensions. The table below presents the TDR’s that occurred during the respective periods presented: Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment ($ in thousands) Year ended September 30, 2016 Residential – first mortgage loans 1 $ 236 $ 236 Year ended September 30, 2015 Residential – first mortgage loans 6 1,117 1,196 Year ended September 30, 2014 C&I loans 1 19,200 $ 15,035 CRE loans 2 22,291 $ 22,291 Residential – first mortgage loans 14 $ 3,599 $ 3,892 Total 17 $ 45,090 $ 41,218 There were no TDR’s for which there was a payment default and for which the respective loan was modified as a TDR during the years ended September 30, 2016 and 2015 , respectively. During the year September 30, 2014 , there were three residential first mortgage TDR’s, respectively, with a recorded investment of $900 thousand 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, 2016 RJ Bank had no outstanding commitments on TDRs. As of September 30, 2015 , RJ Bank had one outstanding commitment on a C&I TDR in the amount of $600 thousand . Credit quality indicators 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 SBL and residential mortgage loan portfolios and internal risk ratings, which correspond to the same standard asset classifications for the corporate loan portfolios. These classifications are divided into three groups: Not Classified (Pass), Special Mention, and Classified or Adverse Rating (Substandard, Doubtful and Loss). These terms 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 because, 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. The credit quality of RJ Bank’s held for investment loan portfolio is as follows: Pass Special mention (1) Substandard (1) Doubtful (1) Total (in thousands) September 30, 2016 C&I $ 7,241,055 $ 117,046 $ 112,272 $ — $ 7,470,373 CRE construction 122,718 — — — 122,718 CRE 2,549,672 — 4,399 — 2,554,071 Tax-exempt 740,944 — — — 740,944 Residential mortgage First mortgage 2,355,393 11,349 54,127 — 2,420,869 Home equity 20,413 182 105 — 20,700 SBL 1,904,827 — — — 1,904,827 Total $ 14,935,022 $ 128,577 $ 170,903 $ — $ 15,234,502 September 30, 2015 C&I $ 6,739,179 $ 97,623 $ 91,216 $ — $ 6,928,018 CRE construction 162,356 — — — 162,356 CRE 2,034,692 39 19,423 — 2,054,154 Tax-exempt 484,537 — — — 484,537 Residential mortgage First mortgage 1,868,044 14,890 58,860 — 1,941,794 Home equity 20,372 128 320 — 20,820 SBL 1,481,504 — — — 1,481,504 Total $ 12,790,684 $ 112,680 $ 169,819 $ — $ 13,073,183 (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. 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 changes 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% $ 804,559 LTV greater than 50% but less than 80% 1,256,436 LTV greater than 80% but less than 100% 66,307 LTV greater than 100%, but less than 120% 11,106 LTV greater than 120% 858 Total $ 2,139,266 (1) Excludes loans that have full repurchase recourse for any delinquent loans. Allowance for loan losses and reserve for unfunded lending commitments Changes in the allowance for loan losses of RJ Bank by portfolio segment are as follows: Loans held for investment C&I CRE construction CRE Tax-exempt Residential mortgage SBL Total (in thousands) Year ended September 30, 2016 Balance at beginning of year: $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 Provision (benefit) for loan losses 23,051 (1,023 ) 5,997 (1,849 ) 191 1,800 28,167 Net (charge-offs)/recoveries: Charge-offs (2,956 ) — — — (1,470 ) — (4,426 ) Recoveries — — — — 1,417 — 1,417 Net charge-offs (2,956 ) — — — (53 ) — (3,009 ) Foreign exchange translation adjustment (17 ) (70 ) 50 — — — (37 ) Balance at September 30, 2016 $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 Year ended September 30, 2015 Balance at beginning of year: $ 103,179 $ 1,594 $ 25,022 $ 1,380 $ 14,350 $ 2,049 $ 147,574 Provision (benefit) for loan losses 16,091 1,176 2,205 4,569 (1,363 ) 892 23,570 Net (charge-offs)/recoveries: Charge-offs (1,191 ) — — — (1,667 ) — (2,858 ) Recoveries 611 — 3,773 — 1,206 25 5,615 Net (charge-offs)/recoveries (580 ) — 3,773 — (461 ) 25 2,757 Foreign exchange translation adjustment (1,067 ) (63 ) (514 ) — — — (1,644 ) Balance at September 30, 2015 $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 Year ended September 30, 2014 Balance at beginning of year: $ 95,994 $ 1,000 $ 19,266 $ — $ 19,126 $ 1,115 $ 136,501 Provision (benefit) for loan losses 9,560 625 5,860 1,380 (4,759 ) 899 13,565 Net (charge-offs)/recoveries: Charge-offs (1,845 ) — (16 ) — (2,015 ) — (3,876 ) Recoveries 16 — 80 — 1,998 35 2,129 Net (charge-offs)/recoveries (1,829 ) — 64 — (17 ) 35 (1,747 ) Foreign exchange translation adjustment (546 ) (31 ) (168 ) — — — (745 ) Balance at September 30, 2014 $ 103,179 $ 1,594 $ 25,022 $ 1,380 $ 14,350 $ 2,049 $ 147,574 The following table presents, by loan portfolio segment, RJ Bank’s recorded investment and related allowance for loan losses: Loans held for investment Allowance for loan losses Recorded investment (1) Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total (in thousands) September 30, 2016 C&I $ 13,351 $ 124,350 $ 137,701 $ 35,194 $ 7,435,179 $ 7,470,373 CRE construction — 1,614 1,614 — 122,718 122,718 CRE — 36,533 36,533 4,230 2,549,841 2,554,071 Tax-exempt — 4,100 4,100 — 740,944 740,944 Residential mortgage 3,156 9,508 12,664 56,735 2,384,834 2,441,569 SBL — 4,766 4,766 — 1,904,827 1,904,827 Total $ 16,507 $ 180,871 $ 197,378 $ 96,159 $ 15,138,343 $ 15,234,502 September 30, 2015 C&I $ 1,132 116,491 $ 117,623 $ 10,599 $ 6,917,419 $ 6,928,018 CRE construction — 2,707 2,707 — 162,356 162,356 CRE — 30,486 30,486 4,796 2,049,358 2,054,154 Tax-exempt — 5,949 5,949 — 484,537 484,537 Residential mortgage 4,046 8,480 12,526 62,706 1,899,908 1,962,614 SBL — 2,966 2,966 — 1,481,504 1,481,504 Total $ 5,178 $ 167,079 $ 172,257 $ 78,101 $ 12,995,082 $ 13,073,183 (1) Excludes any net unearned income and deferred expenses. The reserve for unfunded lending commitments, included in trade and other payables on our Consolidated Statements of Financial Condition, was $11 million and $10 million at September 30, 2016 and 2015 , respectively. |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 (in thousands) Investments in company-owned life insurance (1) $ 417,137 $ 320,523 Prepaid expenses 91,129 75,528 Direct investment in LIHTC project partnerships by RJ Bank (2) 55,129 33,267 Investment in FHLB stock 38,813 35,582 Indemnification asset (3) 35,325 143,144 Investment in FRB stock 24,706 24,450 Prepaid compensation arising from 3Macs acquisition (4) 24,285 — Low-income housing tax credit fund financing asset (5) 20,543 24,452 Prepaid compensation associated with DBRSU awards (6) 15,170 — OREO (7) 4,497 4,631 Other assets 50,490 32,162 Prepaid expenses and other assets $ 777,224 $ 693,739 (1) As of September 30, 2016 , we own life insurance policies with a cumulative face value of $955.8 million . (2) See the discussion of the accounting policies regarding these investments in the “direct investments in LIHTC project partnerships” section of Note 2 . (3) The indemnification asset pertains to legal matters for which Regions (as hereinafter defined in Note 21 ) has indemnified RJF in connection with our acquisition of Morgan Keegan (as hereinafter defined in Note 21 ). The liabilities related to such matters are included in trade and other payables on our Consolidated Statements of Financial Condition. See Note 21 for additional information. (4) Asset arose from our acquisition of 3Macs. See the discussion of the circumstances giving rise to this asset in Note 3 . (5) In fiscal year 2010, we sold an investment in a low-income housing tax credit fund and we guaranteed the return on investment to one of the purchasers. As a result of selling this investment and providing a guaranteed return to its buyer, we are the primary beneficiary of the fund that was sold (see Note 11 for further information regarding the consolidation of this fund) and we 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 $20.5 million and $24.5 million is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2016 and 2015 , respectively. See Note 21 for further discussion of our obligations under the guarantee. (6) See the discussion of the DBRSU awards in the “share-based compensation” section of Note 2 , and additional information about such awards in Note 24 . (7) See the discussion of the accounting policies regarding OREO in the “nonperforming assets” section of Note 2 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Sep. 30, 2016 | |
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 VIEs we consolidate are provided in the table below. Aggregate assets (1) Aggregate liabilities (1) (in thousands) September 30, 2016 LIHTC Funds $ 107,511 $ 26,604 Guaranteed LIHTC Fund (2) 63,415 2,556 Restricted Stock Trust Fund 9,949 9,949 EIF Funds 3,749 — Total $ 184,624 $ 39,109 September 30, 2015 LIHTC Funds $ 143,111 $ 41,125 Guaranteed LIHTC Fund (2) 71,231 2,263 Restricted Stock Trust Fund 6,405 6,405 EIF Funds 4,627 — Total $ 225,374 $ 49,793 (1) Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. (2) In connection with one of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has provided one investor member with a guaranteed return on their investment in the fund. See Note 10 for information regarding the financing asset associated with this fund, and see Note 21 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 which 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, 2016 2015 (in thousands) Assets: Assets segregated pursuant to regulations and other segregated assets $ 7,547 $ 8,525 Receivables, other 5,493 5,542 Investments in real estate partnerships held by consolidated variable interest entities 157,228 199,678 Trust fund investment in RJF common stock (1) 9,948 6,404 Prepaid expenses and other assets 3,711 4,297 Total assets $ 183,927 $ 224,446 Liabilities and equity: Trade and other payables $ 13,231 $ 12,424 Intercompany payables 9,918 6,400 Loans payable of consolidated variable interest entities (2) 12,597 25,960 Total liabilities 35,746 44,784 RJF equity 6,094 6,121 Noncontrolling interests 142,087 173,541 Total equity 148,181 179,662 Total liabilities and equity $ 183,927 $ 224,446 (1) Included in treasury stock in our Consolidated Statements of Financial Condition. (2) Comprised of 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 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, 2016 2015 2014 (in thousands) Revenues: Interest $ 2 $ 2 $ 1 Other 46 (817 ) 1,334 Total revenues 48 (815 ) 1,335 Interest expense (1,021 ) (1,879 ) (2,900 ) Net revenues (973 ) (2,694 ) (1,565 ) Non-interest expenses (1) 42,507 38,179 40,819 Net loss including noncontrolling interests (43,480 ) (40,873 ) (42,384 ) Net loss attributable to noncontrolling interests (43,453 ) (40,829 ) (42,374 ) Net loss attributable to RJF $ (27 ) $ (44 ) $ (10 ) (1) Primarily comprised of items reported in other expense on our Consolidated Statements of Income and Comprehensive Income. Low-income housing tax credit funds As of September 30, 2016 , RJTCF is the managing member or general partner in 106 separate low-income housing tax credit funds having one or more investor members or limited partners, 93 of which are determined to be VIEs and 13 of which are determined not to be VIEs. RJTCF has concluded that it is the primary beneficiary of six non-guaranteed LIHTC Fund VIEs and accordingly, consolidates these funds. In addition, RJTCF consolidates the one Guaranteed LIHTC Fund VIE it sponsors. See Note 21 for further discussion of the guarantee obligation as well as other RJTCF commitments. RJTCF also consolidates seven of the funds it determined not to be VIEs. VIEs where we hold a variable interest but 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 One of our affiliates is the managing member of six NMTC Funds, and, as discussed in Note 2 , this affiliate is not deemed to be the primary beneficiary of these NMTC Funds. These NMTC Funds are therefore 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. 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 as to which we have concluded we are not the primary beneficiary, are provided in the table below. September 30, 2016 2015 Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss (in thousands) LIHTC Funds $ 4,111,813 $ 1,406,453 $ 83,155 $ 3,317,594 $ 951,465 $ 42,244 NMTC Funds 65,338 68 12 65,388 40 12 Other Real Estate Limited Partnerships and LLCs 22,897 23,522 140 29,523 37,062 163 Total $ 4,200,048 $ 1,430,043 $ 83,307 $ 3,412,505 $ 988,567 $ 42,419 VIEs where we hold a variable interest but we are not required to consolidate Managed Funds We have subsidiaries which serve as the general partner of these Managed Funds. As described in Note 2 , we have determined that we are not required to consolidate these Managed Funds. The aggregate assets, liabilities, and our exposure to loss from Managed Funds in which we hold a variable interest as of the dates indicated are provided in the table below: September 30, 2016 2015 Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss (in thousands) Managed Funds $ 99,483 $ 74 $ — $ 83,132 $ 22 $ 53 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT September 30, 2016 2015 (in thousands) Land $ 24,150 $ 20,104 Buildings, leasehold and land improvements 260,800 241,457 Furniture, fixtures, and equipment 200,947 179,952 Software 271,864 189,227 Construction in process 3,711 5,973 761,472 636,713 Less: Accumulated depreciation and amortization (440,015 ) (380,838 ) Total property and equipment, net $ 321,457 $ 255,875 |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE 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, 2016 2015 (in thousands) Goodwill $ 408,072 $ 307,635 Identifiable intangible assets, net 96,370 69,327 Total goodwill and identifiable intangible assets, net $ 504,442 $ 376,962 Goodwill 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, 2014 $ 174,584 $ 120,902 $ 295,486 Additions 12,149 (1) — 12,149 Goodwill at September 30, 2015 $ 186,733 $ 120,902 $ 307,635 Additions 86,351 (2) 9,012 (3) 95,363 Foreign currency translation 2,437 2,637 5,074 Goodwill at September 30, 2016 $ 275,521 $ 132,551 $ 408,072 (1) The addition in fiscal year 2015 is directly attributable to the acquisition of TPC (see Notes 1 and 3 for additional information). (2) Of the total private client group segment additions in fiscal year 2016, $81.7 million is attributable to our acquisition of Alex. Brown, and $4.7 million is attributable to our acquisition of 3Macs. See Note 3 for additional information. The addition to goodwill associated with Alex. Brown is deductible for tax purposes over 15 years, the addition attributable to 3Macs is not deductible for tax purposes. (3) The capital markets segment goodwill addition in fiscal year 2016 is directly attributable to our acquisition of Mummert. This goodwill is not deductible for tax purposes. As described in Note 2 , 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 during the quarter ended March 31, 2016, evaluating the balances as of December 31, 2015. We assign goodwill to reporting units. Our reporting units include a Private Client Group reporting unit comprised of our RJ&A domestic retail brokerage operations and TPC (included in our Private Client Group segment), RJ&A Fixed Income (included in our Capital Markets segment) and RJ&A Equity Capital Markets (included in our Capital Markets segment). In addition, we have two RJ Ltd. reporting units (RJ Ltd. Private Client Group (included in our Private Client Group segment) and RJ Ltd. Capital Markets (included in our Capital Markets segment)), each associated with our Canadian operations, and we elected to perform a quantitative assessment for each of the Canadian reporting units. Qualitative Assessments For each reporting unit that we performed qualitative assessments on, we determined whether it is more likely than not that the carrying value of the reporting unit, including the recorded goodwill, is in excess of the fair value of the reporting unit. In any instance in which we are unable to qualitatively conclude that it is more likely than not that the fair value of the reporting unit exceeds the reporting unit carrying value including goodwill, a quantitative analysis of the fair value of the reporting unit would be performed. Based upon the outcome of our qualitative assessments, we determined that no quantitative analysis of the fair value of any of the reporting units we elected to qualitatively analyze as of December 31, 2015 was required, and we concluded that none of the goodwill allocated to any of those reporting units as of December 31, 2015 was impaired. No events have occurred since December 31, 2015 that would cause us to update this impairment testing. Quantitative Assessments For our two RJ Ltd. reporting units, we elected not to perform a qualitative assessment but instead to perform quantitative assessments of the equity value of each RJ Ltd. 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 December 31, 2015 impairment test date and a statement of operations for the last twelve months of activity for each reporting unit 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, 2015: 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: RJ Ltd. Private Client Group $ 16,144 14 % 1.2x/12.4x 75 % 25 % Capital markets: RJ Ltd. Capital Markets 16,893 15 % 1.1x/14.4x 75 % 25 % Total $ 33,037 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 the regulations. Based upon the outcome of our quantitative assessments as of December 31, 2015, we concluded that none of the goodwill associated with our two RJ Ltd. reporting units was impaired. No events have occurred since December 31, 2015 that would cause us to update this impairment testing. Identifiable intangible assets, net The following table sets forth 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, 2013 $ 9,191 $ 43,474 $ 12,329 $ 984 $ 65,978 Additions — — — 408 (1) 408 Amortization expense (580 ) (5,499 ) (1,333 ) (199 ) (7,611 ) Net identifiable intangible assets as of September 30, 2014 $ 8,611 $ 37,975 $ 10,996 $ 1,193 $ 58,775 Additions 10,290 (2) — 7,974 (3) 574 (1) 18,838 Amortization expense (719 ) (5,443 ) (1,833 ) (291 ) (8,286 ) Net identifiable intangible assets as of September 30, 2015 $ 18,182 $ 32,532 $ 17,137 $ 1,476 $ 69,327 Additions 36,624 (4) 1,013 (5) — 419 (1) 38,056 Amortization expense (1,870 ) (5,619 ) (2,226 ) (412 ) (10,127 ) Foreign currency translation — 11 (810 ) — (799 ) Impairment losses — — — (87 ) (87 ) Net identifiable intangible assets as of September 30, 2016 $ 52,936 $ 27,937 $ 14,101 $ 1,396 $ 96,370 (1) The additions are the result of mortgage servicing rights held by RJ Bank. The estimated useful life associated with these additions is approximately 10 years . (2) The fiscal year 2015 additions are directly attributable to the acquisition of identifiable intangible assets which include customer relationships, a trade name, developed technology, and non-compete agreements, arising from our acquisition of TPC (see Note 3 for additional information). (3) The fiscal year 2015 additions are directly attributable to the acquisition of identifiable intangible assets which include customer relationships, a trade name, intellectual property, and a non-compete agreement, arising from our acquisition of Cougar (see Note 3 for additional information). (4) The fiscal year 2016 additions are directly attributable to the acquisition of identifiable intangible assets which include customer relationships, trade names, seller relationship agreements, and non-compete agreements arising from our acquisitions of Alex. Brown and/or 3Macs (see Note 3 for additional information). The weighted-average useful life associated with these intangible assets, by major asset class, are 15 years for the customer relationships, four years for the trade names, six years for the seller relationship agreements, and three years for the non-compete agreements. Altogether the aggregate weighted-average useful life associated with these additions is 12 years . (5) The fiscal year 2016 addition is directly attributable to the acquisition of identifiable intangible assets, primarily a customer relationship intangible asset, arising from o ur acquisition of Mummert (see Note 3 for additional information). The weighted-average useful life associated with the addition is one year . Identifiable intangible assets by type are presented below: September 30, 2016 2015 Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization (in thousands) Customer relationships $ 99,470 $ (22,895 ) $ 75,217 $ (17,759 ) Trade name 8,172 (499 ) 4,278 (111 ) Developed technology 12,630 (10,280 ) 12,630 (7,754 ) Intellectual property 516 (73 ) 561 (23 ) Non-compete agreements 3,314 (612 ) 1,018 (206 ) Seller relationship agreements 5,300 (69 ) — — Mortgage servicing rights 2,144 (748 ) 2,067 (591 ) Total $ 131,546 $ (35,176 ) $ 95,771 $ (26,444 ) Projected amortization expense by fiscal year associated with the identifiable intangible assets as of September 30, 2016 is as follows: Fiscal year ended September 30, (in thousands) 2017 $ 12,947 2018 11,156 2019 10,675 2020 9,895 2021 9,104 Thereafter 42,593 $ 96,370 |
BANK DEPOSITS
BANK DEPOSITS | 12 Months Ended |
Sep. 30, 2016 | |
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 of RJ Bank. The following table presents a summary of bank deposits including the weighted-average rate: September 30, 2016 2015 Balance Weighted-average rate (1) Balance Weighted-average rate (1) ($ in thousands) Bank deposits: NOW accounts $ 4,958 0.01 % $ 4,752 0.01 % Demand deposits (non-interest-bearing) 7,264 — 9,295 — Savings and money market accounts 13,935,089 0.05 % 11,550,917 0.02 % Certificates of deposit 315,236 1.55 % 354,917 1.64 % Total bank deposits (2) $ 14,262,547 0.08 % $ 11,919,881 0.07 % (1) Weighted-average rate calculation is based on the actual deposit balances at September 30, 2016 and 2015 , respectively. (2) Bank deposits exclude affiliate deposits of approximately $353 million and $458 million at September 30, 2016 and 2015 , respectively. These affiliate deposits include $350 million and $451 million , held in a deposit account on behalf of RJF as of September 30, 2016 and 2015 , respectively (see Note 29 for additional information). 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. The aggregate amount of time deposit account balances that exceed the FDIC insurance limit at September 30, 2016 is $21.9 million . Scheduled maturities of certificates of deposit are as follows: September 30, 2016 2015 Denominations greater than or equal to $100,000 Denominations less than $100,000 Denominations greater than or equal to $100,000 Denominations less than $100,000 (in thousands) Three months or less $ 14,252 $ 12,663 $ 6,206 $ 7,610 Over three through six months 14,191 9,750 11,731 7,304 Over six through twelve months 15,452 12,321 18,341 14,807 Over one through two years 32,816 11,060 43,133 33,163 Over two through three years 43,730 22,148 33,556 10,825 Over three through four years 58,425 28,863 51,140 23,616 Over four through five years 26,173 13,392 63,351 30,134 Total $ 205,039 $ 110,197 $ 227,458 $ 127,459 Interest expense on deposits is summarized as follows: Year ended September 30, 2016 2015 2014 (in thousands) Certificates of deposit $ 5,402 $ 5,839 $ 6,126 Money market, savings and NOW accounts (1) 4,816 2,543 1,833 Total interest expense on deposits $ 10,218 $ 8,382 $ 7,959 (1) The balances for the year ended September 30, 2016 are presented net of interest expense associated with affiliate deposits. |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Sep. 30, 2016 | |
Other Borrowings [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS The following table details the components of other borrowings: September 30, 2016 2015 (in thousands) Other borrowings: FHLB advances $ 575,000 (1) $ 550,000 (2) Mortgage notes payable (3) 33,391 37,716 Borrowings on secured lines of credit (4) — 115,000 Borrowings on ClariVest revolving credit facility (5) 267 349 Borrowings on unsecured lines of credit (6) (7) — — Total other borrowings $ 608,658 $ 703,065 (1) Borrowings from the FHLB as of September 30, 2016 are comprised of three advances. The FHLB advances in the amount of $250 million , and $300 million , mature in September 2018 and have interest rates which reset quarterly. We use interest rate swaps to manage the risk of increases in interest rates associated with these floating-rate advances by converting all of these balances subject to variable interest rates to a fixed interest rate. Refer to Note 18 for information regarding these interest rate swaps which are accounted for as hedging instruments. The other FHLB advance, in the amount of $25 million , matures in October, 2020 and bears interest at a fixed rate of 3.4% . All of the FHLB advances are secured by a blanket lien granted to the FHLB on RJ Bank’s residential mortgage loan portfolio. The weighted average interest rate on these advances as of September 30, 2016 is 1.01% . (2) Borrowings from the FHLB at September 30, 2015 are comprised of two floating-rate advances, one in the amount of $250 million and the other in the amount of $300 million . Both of these advances were restructured during fiscal year 2016 in order to extend their maturity date. See the following page for the continuation of the explanations to the footnotes in the above table. Continuation of the footnote explanations pertaining to the table on the previous page. (3) Mortgage notes payable pertain to mortgage loans on our corporate headquarters offices located in St. Petersburg, Florida. These mortgage loans are secured by land, buildings, and improvements with a net book value of $44.7 million at September 30, 2016 . These mortgage loans bear interest at 5.7% with repayment terms of monthly interest and principal debt service and have a January 2023 maturity. (4) Borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities. (5) ClariVest Asset Management, LLC (“ClariVest”), a subsidiary of Eagle, is a party to a revolving line of credit provided by a third party lender (the “ClariVest Facility”). The maximum amount available to borrow under the ClariVest Facility is $500 thousand , bearing interest at a variable rate which is 1% over the lenders prime rate. The ClariVest Facility expires in September 2018 . (6) In August 2015, RJF entered into a revolving credit facility agreement in which the lenders are a number of financial institutions (the “RJF Credit Facility”). This committed unsecured borrowing facility provides for maximum borrowings of up to $300 million , at variable rates of interest, with a facility maturity date in August 2020. There are no borrowings outstanding on the RJF Credit Facility as of either September 30, 2016 or 2015 . The interest rate associated with the RJF Credit Facility is a variable rate that, among other factors, varies depending upon RJF’s credit rating. Based upon RJF’s credit rating as of September 30, 2016 , the variable borrowing rate is 1.75% per annum over LIBOR. There is a variable rate commitment fee associated with the RJF Credit Facility, such fee varying depending upon RJF’s credit rating. Based upon RJF’s credit rating as of September 30, 2016 , the variable rate commitment fee which applies to any difference between the daily borrowed amount and the committed amount, is 0.25% per annum. (7) Borrowings on unsecured lines of credit, with the exception of the RJF Credit Facility, 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, a lenders prime rate, or the Canadian prime rate, as applicable. For the fiscal year ended September 30, 2016 , interest rates on the U.S. facilities that were utilized during the year, other than the ClariVest Facility and the RJF Credit Facility which are each previously described, ranged from 0.18% to 2.85% (on a 360 days per year basis). The interest rate on the ClariVest Facility during the fiscal year ended September 30, 2016 was 4.45% (on a 360 days per year basis). The interest rate on the Canadian facility which was utilized from time-to-time throughout fiscal year 2016 was 1.95% (on a 360 days per year basis). Our other borrowings as of September 30, 2016 , mature as follows based on their contractual terms: Fiscal year ended September 30, (in thousands) 2017 $ 4,578 2018 555,113 2019 5,130 2020 5,430 2021 30,748 Thereafter 7,659 Total $ 608,658 There were other collateralized financings outstanding in the amount of $193 million and $333 million as of September 30, 2016 and 2015 , respectively. 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. See Note 19 for additional information regarding offsetting asset and liability balances as well as additional information regarding the collateral. |
LOANS PAYABLE OF CONSOLIDATED V
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES | 12 Months Ended |
Sep. 30, 2016 | |
Loans Payable of Consolidated Variable Interest Entities [Abstract] | |
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES | LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES Two of the VIEs that we consolidate have borrowings which are comprised of non-recourse loans. These loans have imputed interest rates of 5.17% and 6.38% . Payments on these loans are made semi-annually by the borrowing VIE directly to the third party lender. These loans mature on January 2, 2018 and January 2, 2019 . We are not contingently obligated under either 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, 2016 2015 (in thousands) Current portion of loans payable $ 8,306 $ 13,363 Long-term portion of loans payable 4,291 12,597 Total loans payable $ 12,597 $ 25,960 The principal amount of the VIEs’ borrowings as of September 30, 2016 , mature as follows based on their contractual terms: Fiscal year ended September 30, (in thousands) 2017 $ 8,306 2018 3,613 2019 678 Total $ 12,597 |
SENIOR NOTES PAYABLE
SENIOR NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
SENIOR NOTES PAYABLE | SENIOR NOTES PAYABLE The following summarizes our senior notes payable: September 30, 2016 2015 (in thousands) 4.25% senior notes, due 2016 (1) $ — $ 250,000 8.60% senior notes, due 2019 (2) 300,000 300,000 5.625% senior notes, due 2024 (3) 250,000 250,000 3.625% senior notes, due 2026 (4) 500,000 — 6.90% senior notes, due 2042 (5) 350,000 350,000 4.95% senior notes, due 2046 (6) 300,000 — 1,700,000 1,150,000 Unaccreted discount (1,601 ) (778 ) Debt issuance costs (17,812 ) (11,652 ) Total senior notes payable $ 1,680,587 $ 1,137,570 (1) In April 2011 , we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 4.25% senior notes. The notes matured and were repaid in April 2016 . (2) 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. (3) 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. (4) In July 2016 , we sold in a registered underwritten public offering, $500 million in aggregate principal amount of 3.625% senior notes due September 2026 . 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 35 basis points, plus accrued and unpaid interest thereon to the redemption date. See the following page for the continuation of the explanations to the footnotes in the above table. Continuation of the footnote explanations pertaining to the table on the previous page. (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) In July 2016 , we sold in a registered underwritten public offering, $300 million in aggregate principal amount of 4.95% senior notes due July 2046 . 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 45 basis points, plus accrued and unpaid interest thereon to the redemption date. Our senior notes payable outstanding as of September 30, 2016 , mature as follows based on their contractual terms: Fiscal year ended September 30, (in thousands) 2017 $ — 2018 — 2019 300,000 2020 — 2021 — Thereafter 1,400,000 Total $ 1,700,000 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2016 | |
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 We enter into derivatives contracts as part of our fixed income operations in either over-the-counter market activities, or through “matched book” activities. Each of these activities are described further below. In our over-the-counter market activities, we enter into interest rate swaps and futures contracts either as part of our fixed income business to facilitate client transactions, to hedge a portion of our trading inventory, or to a limited extent for our own account. The majority of these derivative positions are executed in the over-the-counter market either directly with financial institutions or trades cleared through an exchange (together referred to as the “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. In our “matched book” activities, RJFP enters into derivative transactions (primarily interest rate swaps) with clients. For every derivative transaction RJFP enters into with a customer, RJFP enters into an offsetting transaction, on terms that mirror the customer transaction, with a credit support provider which is a third party financial institution. Due to this “pass-through” transaction structure, RJFP has completely mitigated the market and credit risk related to these derivative contracts. Therefore, the ultimate credit and market risk resides with the third party financial institution. RJFP only has credit risk related to its uncollected derivative transaction fee revenues. In these activities, we do not use derivative instruments for trading or hedging purposes. 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 client and the third party financial institution. RJFP 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 RJFP is $7 million at both September 30, 2016 and 2015 , 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 We enter into derivatives contracts as part of RJ Bank’s business operations through its hedging activities, which include forward foreign exchange contracts and interest rate swaps. Each of these activities is described in the “derivative contracts” section of Note 2 . Each of these activities is described further below. A Canadian subsidiary of RJ Bank conducts operations directly related to RJ Bank’s Canadian dollar-denominated 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. The cash flows associated with certain assets held by RJ Bank provide interest income at fixed interest rates. Therefore, the value of these assets, absent any risk mitigation, is subject to fluctuation based upon changes in market rates of interest over time. Through the RJ Bank Interest Hedges, RJ Bank swaps variable interest payments on certain debt for fixed interest payments as a strategy to mitigate a portion of the market risk associated with certain fixed interest earning assets held by RJ Bank. See Note 22 for additional information on the impact of these hedging activities on our Other Comprehensive (Loss) Income. 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. 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 allows 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. Refer to Note 19 for additional information regarding offsetting asset and liability balances. 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 asset of $33 million as of September 30, 2016 , and a net liability of $44 million as of September 30, 2015 . 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 $3 million and $26 million at September 30, 2016 and 2015 , respectively. Our maximum loss exposure under the interest rate swap contracts arising from our OTC Derivatives Operations at September 30, 2016 is $38 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. As of September 30, 2016 , all of RJ Bank’s forward foreign exchange contracts are assets, therefore we consider there to be no significant exposure to loss under these contracts. 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, 2016 September 30, 2015 Balance sheet location Notional amount Fair value (1) Balance sheet location Notional amount Fair value (1) (in thousands) Derivatives designated as hedging instruments: Forward foreign exchange contracts (2) Prepaid expenses and other assets $ 988,200 (3) $ 1,396 Prepaid expenses and other assets $ 752,600 (3) $ 613 Derivatives not designated as hedging instruments: Interest rate contracts (4) Trading instruments $ 2,036,233 $ 153,482 Trading instruments $ 2,473,946 $ 130,095 Interest rate contracts (4) Trading instruments $ 121,715 (3) $ 9,760 Trading instruments $ 74,873 (3) $ 2,612 Interest rate contracts (5) Derivative instruments associated with offsetting matched book positions $ 1,469,295 $ 422,196 Derivative instruments associated with offsetting matched book positions $ 1,649,863 $ 389,457 Forward foreign exchange contracts (2) Prepaid expenses and other assets $ 411,300 (3) $ 620 Prepaid expenses and other assets $ 214,300 (3) $ 304 Liability derivatives Derivatives designated as hedging instruments: Interest rate contracts (6) Trade and other payables $ 550,000 $ 26,671 Trade and other payables $ 300,000 $ 7,545 Derivatives not designated as hedging instruments: Interest rate contracts (4) Trading instruments sold $ 1,997,100 $ 145,296 Trading instruments sold $ 1,906,766 $ 104,255 Interest rate contracts (4) Trading instruments sold $ 133,108 (3) $ 6,398 Trading instruments sold $ 136,710 (3) $ 4,865 Interest rate contracts (5) Derivative instruments associated with offsetting matched book positions $ 1,469,295 $ 422,196 Derivative instruments associated with offsetting matched book positions $ 1,649,863 $ 389,457 DBRSUs (7) Accrued compensation, commissions and benefits $ 17,769 (8) $ 17,769 (9) — $ — $ — (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. See Note 19 for additional information regarding offsetting asset and liability balances. (2) These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. (3) The notional amount presented is denominated in Canadian currency. (4) These contracts arise from our OTC Derivatives Operations. (5) These contracts arise from our Offsetting Matched Book Derivatives Operations. (6) These contracts are associated with our RJ Bank Interest Hedges activities. (7) This derivative liability arose from our acquisition of Alex. Brown. See the discussion of the circumstances giving rise to this liability in Note 3 . (8) The notional amount for the DBRSU derivative is the number of DBRSU awards to be settled in DB shares, times the DB share price as of September 30, 2016 . (9) The fair value of the DBRSU derivative includes both the pre-combination and the post-combination share obligation. (Losses) gains recognized in AOCI, net of income taxes, on derivatives are as follows (see Note 22 for additional information): Year ended September 30, 2016 2015 2014 (in thousands) Forward foreign exchange contracts $ (6,721 ) $ 60,331 $ 29,376 RJ Bank Interest Hedges (11,833 ) (4,650 ) — Total (losses) gains recognized in AOCI, net of taxes $ (18,554 ) $ 55,681 $ 29,376 There was no hedge ineffectiveness and no components of derivative gains or losses were excluded from the assessment of hedge effectiveness for any of the years ended September 30, 2016 , 2015 or 2014 . We expect to reclassify an estimated $5.8 million as additional interest expense out of AOCI and into earnings within the next 12 months. The maximum length of time over which forecasted transactions are or will be hedged is 10 years. The table below sets forth the impact of the derivatives not designated as hedging instruments on the Consolidated Statements of Income and Comprehensive Income: Location of the impact recognized on derivatives included in the Consolidated Statements of Income and Comprehensive Income Amount recognized during the year ended September 30, 2016 2015 2014 (in thousands) Derivatives not designated as hedging instruments: Interest rate contracts (1) Net trading profit $ 2,819 $ 3,107 $ 1,554 Interest rate contracts (2) Other revenues $ 92 $ 901 $ 712 Forward foreign exchange contracts (3) Other (loss) revenues $ (2,662 ) $ 20,459 $ 5,694 DBRSUs (4) Compensation, commissions and benefits (gain) $ (2,457 ) $ — $ — (1) These contracts arise from our OTC Derivatives Operations. (2) These contracts arise from our Offsetting Matched Book Derivatives Operations. (3) These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. (4) The derivative arose from our acquisition of Alex. Brown, see the discussion of the circumstances giving rise to this derivative in Note 3 . The impact of the change in value of the derivative in the current period is a gain, as the DB share price decreased. We also hold 900,000 shares of DB as of September 30, 2016 as an economic hedge against this obligation. The change in value of such DB shares since the AB Closing Date is recorded as a component of compensation, commissions and benefits expense on our Consolidated Statements of Income and Comprehensive Income, and partially offset a portion of this gain. 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, futures contracts, and the interest rate contracts associated with our OTC Derivatives Operations that are not cleared through an exchange. 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 that are not cleared through an exchange, 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 required to maintain cash or marketable security deposits with the exchange we utilize to clear our OTC Derivatives transactions that are cleared through such exchanges. These deposits are a component of deposits with clearing organizations on our Consolidated Statements of Financial Condition. We are exposed to interest rate risk related to the interest rate derivative agreements arising from certain of our OTC Derivatives Operations and RJ Bank Interest Hedges. We are also exposed to foreign exchange risk related to our futures contracts and forward foreign exchange derivative agreements. We monitor exposure in our derivative agreements which we have risk 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, the counterparties to the derivative instruments could terminate and 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, 2016 is $3 million , for which we have posted collateral of $2 million in the ordinary course of business. If the credit-risk-related contingent features underlying these agreements were triggered on September 30, 2016 , we would have been required to post an additional $1 million 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 previously described. |
DISCLOSURE OF OFFSETTING ASSETS
DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL ENCUMBERED ASSETS, AND REPURCHASE AGREEMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Offsetting Assets and Liabilities, Collateral, Encumbered Assets and Repurchase Agreements [Abstract] | |
DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL, ENCUMBERED ASSETS, AND REPURCHASE AGREEMENTS | DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL, ENCUMBERED ASSETS AND REPURCHASE AGREEMENTS Offsetting assets and liabilities The following table presents information about the financial and derivative instruments that are offset or subject to an enforceable master netting arrangement or other similar agreement as of the dates indicated: Gross amounts not offset in the Statements of Financial Condition Gross amounts of recognized assets (liabilities) Gross amounts offset in the Statements of Financial Condition Net amounts presented in the Statements of Financial Condition Financial instruments Cash (received)paid Net amount (in thousands) As of September 30, 2016: Assets Securities purchased under agreements to resell and other collateralized financings $ 470,222 $ — $ 470,222 $ (470,222 ) (1) $ — $ — Derivatives - interest rate contracts (2) 153,482 (107,539 ) 45,943 (29,028 ) — 16,915 Derivatives - interest rate contracts (3) 9,760 — 9,760 — — 9,760 Derivatives - forward foreign exchange contracts (5) 2,016 — 2,016 — — 2,016 Derivative instruments associated with offsetting matched book positions 422,196 — 422,196 (422,196 ) (4) — — Stock borrowed 170,860 — 170,860 (167,169 ) — 3,691 Total assets $ 1,228,536 $ (107,539 ) $ 1,120,997 $ (1,088,615 ) $ — $ 32,382 Liabilities Securities sold under agreements to repurchase $ (193,229 ) $ — $ (193,229 ) $ 193,229 (6) $ — $ — Derivatives - interest rate contracts (2) (145,296 ) 142,859 (2,437 ) 2,437 (7) — — Derivatives - interest rate contracts (3) (6,398 ) — (6,398 ) — — (6,398 ) Derivatives - RJ Bank Interest Hedges (26,671 ) — (26,671 ) — 26,671 (8) — DBRSUs (9) (17,769 ) — (17,769 ) — — (17,769 ) Derivative instruments associated with offsetting matched book positions (422,196 ) — (422,196 ) 422,196 (4) — — Stock loaned (677,761 ) — (677,761 ) 664,870 — (12,891 ) Total liabilities $ (1,489,320 ) $ 142,859 $ (1,346,461 ) $ 1,282,732 $ 26,671 $ (37,058 ) As of September 30, 2015: Assets Securities purchased under agreements to resell and other collateralized financings $ 474,144 $ — $ 474,144 $ (474,144 ) (1) $ — $ — Derivatives - interest rate contracts (2) 130,095 (90,621 ) 39,474 (12,609 ) — 26,865 Derivatives - forward foreign exchange contracts (5) 917 — 917 — — 917 Derivatives - interest rate contracts (3) 2,612 — 2,612 — — 2,612 Derivative instruments associated with offsetting matched book positions 389,457 — 389,457 (389,457 ) (4) — — Stock borrowed 124,373 — 124,373 (120,957 ) — 3,416 Total assets $ 1,121,598 $ (90,621 ) $ 1,030,977 $ (997,167 ) $ — $ 33,810 Liabilities Securities sold under agreements to repurchase $ (332,536 ) $ — $ (332,536 ) $ 332,536 (6) $ — $ — Derivatives - interest rate contracts (2) (104,255 ) 88,881 (15,374 ) 3,528 (7) 7,399 (7) (4,447 ) Derivatives - interest rate contracts (3) (4,865 ) — (4,865 ) — — (4,865 ) Derivatives - RJ Bank Interest Hedges (7,545 ) — (7,545 ) — 7,545 (8) — Derivative instruments associated with offsetting matched book positions (389,457 ) — (389,457 ) 389,457 (4) — — Stock loaned (478,573 ) — (478,573 ) 472,379 — (6,194 ) Total liabilities $ (1,317,231 ) $ 88,881 $ (1,228,350 ) $ 1,197,900 $ 14,944 $ (15,506 ) The text of the footnotes in the above table are on the following page. The text of the footnotes to the table on the previous page are as follows: (1) We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities purchased under agreements to resell and other collateralized financings amounts to $486 million and $499 million as of September 30, 2016 and 2015 , respectively. (2) Derivatives - interest rate contracts are included in trading instruments on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (3) Derivatives - interest rate contracts (in which the notional amount is denominated in Canadian currency) are included in trading instruments on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (4) Although these derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the nature of the agreement with the third party intermediary include terms that are similar to a master netting agreement, thus we present the offsetting amounts net in this table. See Note 18 for further discussion of the “pass through” structure of the derivative instruments associated with Offsetting Matched Book Derivatives Operations. (5) These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. As of both September 30, 2016 and 2015 , the fair value of the forward foreign exchange contract derivatives are in an asset position and are included in prepaid expenses and other assets on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (6) We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities sold under agreements to repurchase amounts to $200 million and $346 million as of September 30, 2016 and 2015 , respectively. (7) For the portion of these derivative contracts that are transacted through an exchange, the nature of the agreement with the clearing member exchange include terms that are similar to a master netting agreement, thus we are over-collateralized as of September 30, 2016 and 2015 since the actual amount of cash and securities deposited with the exchange for these derivative contracts is $8 million and $18 million , respectively. These deposits are a component of deposits with clearing organizations on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (8) Derivatives - RJ Bank Interest Hedges are included in trade and other payables on our Consolidated Statements of Financial Condition. See Note 18 for additional information. The RJ Bank Interest Hedges are transacted through an exchange. The nature of the agreement with the clearing member exchange includes terms that are similar to a master netting agreement. We are over-collateralized since the actual amount of cash and securities deposited with the exchange for these derivative contracts is $42 million and $15 million as of September 30, 2016 , and 2015 , respectively. These deposits are included in deposits with clearing organizations on our Consolidated Statements of Financial Condition. (9) This derivative liability arose from our acquisition of Alex. Brown. See the discussion of the circumstances giving rise to this liability in Note 3 . As of September 30, 2016 , we hold 900,000 DB shares with a fair value of $12 million as an economic hedge against the DBRSUs obligation. See additional discussion of the DBRSUs in Note 24 . For financial statement purposes, we do not offset our repurchase agreements or securities borrowing, securities lending transactions and certain of our derivative instruments including those transacted through an exchange, because the conditions for netting as specified by GAAP are not met. Our repurchase agreements, securities borrowing and securities lending transactions, and certain of our derivative instruments transacted through an exchange, are governed by master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction. Although not offset on the Consolidated Statements of Financial Condition, these transactions are included in the preceding table. Collateral and deposits with clearing organizations We receive cash and securities as collateral, primarily in connection with Reverse Repurchase Agreements, securities borrowed, derivative transactions not transacted through an exchange, and client margin loans arising from our domestic operations (see Note 8 for additional information). The cash collateral we receive is primarily associated with our OTC Derivative Operations (see Note 18 for additional information). The collateral we receive reduces our credit exposure to individual counterparties. We also pay cash to the exchange, or receive cash from the exchange, related to derivative contracts transacted through an exchange. We account for such cash as a component of deposits with clearing organizations on our Consolidated Statements of Financial Condition. In many cases, we are permitted to deliver or repledge financial instruments we have received as collateral, for our own use in our repurchase agreements, securities lending agreements, other secured borrowings, satisfaction of deposit requirements with clearing organizations, or otherwise meeting either our, or our clients, settlement requirements. The table below presents financial instruments at fair value, that we received as collateral, are not included on our Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were used to deliver or repledge, to satisfy one of our purposes described above: September 30, 2016 2015 (in thousands) Collateral we received that is available to be delivered or repledged $ 2,925,335 $ 2,308,277 Collateral that we delivered or repledged $ 1,536,393 (1) $ 1,122,540 (2) (1) The collateral delivered or repledged as of September 30, 2016 , includes client margin securities which we pledged with a clearing organization in the amount of $389 million which were applied against our requirement of $203 million . (2) The collateral delivered or repledged as of September 30, 2015 , includes client margin securities which we pledged with a clearing organization in the amount of $241 million which were applied against our requirement of $148 million . Encumbered assets We pledge certain of our trading instrument assets to collateralize either Repurchase Agreements, other secured borrowings, or to satisfy our settlement requirements, with counterparties who may or may not have the right to deliver or repledge such securities. The table below presents information about the fair value of our assets that have been pledged for one of the purposes described above: September 30, 2016 2015 (in thousands) Financial instruments owned, at fair value, pledged to counterparties that: Had the right to deliver or repledge $ 587,369 $ 424,668 Did not have the right to deliver or repledge $ 25,200 (1) $ 94,006 (2) (1) Assets delivered or repledged as of September 30, 2016 , includes securities which we pledged with a clearing organization in the amount of $19 million which were applied against our requirement of $203 million (client margin securities we pledged which are described in the preceding table constitute the remainder of the assets pledged to meet the requirement). (2) Assets delivered or repledged as of September 30, 2015 , includes securities which we pledged with a clearing organization in the amount of $30 million which were applied against our requirement of $148 million (client margin securities we pledged which are described in the preceding table constitute the remainder of the assets pledged to meet the requirement). Repurchase agreements, repurchase-to-maturity transactions and securities lending transactions accounted for as secured borrowings We enter into Repurchase Agreements where we sell securities under agreements to repurchase, and also engage in securities lending transactions. These activities are accounted for as collateralized financings. Our Repurchase Agreements would include “repurchase-to-maturity” agreements, which are repurchase agreements where a security is transferred under an agreement to repurchase and the maturity date of the repurchase agreement matches the maturity date of the underlying security, if any, that we are a party to as of period-end. As of both September 30, 2016 and 2015 , we did not have any “repurchase-to-maturity” agreements. See Note 2 for a discussion of our respective Repurchase Agreement and securities borrowed and securities loaned accounting policies. The following table presents the remaining contractual maturity of securities under agreements to repurchase and securities lending transactions accounted for as secured borrowings: Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total As of September 30, 2016: (in thousands) Repurchase agreements Government and agency obligations $ 92,804 $ 6,252 $ — $ — $ 99,056 Agency MBS and CMOs 92,422 1,751 — — 94,173 Total Repurchase Agreements 185,226 8,003 — — 193,229 Securities lending Equity securities 677,761 — — — 677,761 Total $ 862,987 $ 8,003 $ — $ — $ 870,990 Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote $ 870,990 Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote $ — As of September 30, 2015: Repurchase agreements Government and agency obligations $ 211,594 $ 5,250 $ — $ — $ 216,844 Agency MBS and CMOs 112,941 2,751 — — 115,692 Total Repurchase Agreements 324,535 8,001 — — 332,536 Securities lending Equity securities 478,573 — — — 478,573 Total $ 803,108 $ 8,001 $ — $ — $ 811,109 Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote $ 811,109 Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote $ — We enter into Repurchase Agreements and conduct securities lending activities as components of the financing of certain of our operating activities. In the event the market value of the securities we pledge as collateral in these activities declines, we may have to post additional collateral or reduce the borrowing amounts. We monitor such levels daily. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Total income taxes are allocated as follows: Year ended September 30, 2016 2015 2014 (in thousands) Recorded in: Income including noncontrolling interests $ 271,293 $ 296,034 $ 267,797 Equity, arising from compensation expense for tax purposes which is (in excess of) less than amounts recognized for financial reporting purposes (35,121 ) 8,115 (7,437 ) Equity, arising from cumulative currency translation adjustments and net investment hedges recorded through other comprehensive income (loss) (“OCI”) (3,525 ) 31,078 15,142 Equity, arising from available for sale securities recorded through OCI (3,295 ) (2,246 ) 3,694 Equity, arising from cash flow hedges recorded through OCI (7,252 ) (2,850 ) — Total $ 222,100 $ 330,131 $ 279,196 Our provision (benefit) for income taxes consists of the following: Year ended September 30, 2016 2015 2014 (in thousands) Current: Federal $ 287,350 $ 266,359 $ 260,504 State and local 32,101 48,130 29,904 Foreign 10,640 5,007 12,560 330,091 319,496 302,968 Deferred: Federal (51,383 ) (20,567 ) (35,262 ) State and local (6,267 ) (5,127 ) (410 ) Foreign (1,148 ) 2,232 501 (58,798 ) (23,462 ) (35,171 ) Total provision for income tax $ 271,293 $ 296,034 $ 267,797 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, 2016 2015 2014 Amount % Amount % Amount % ($ in thousands) Provision calculated at statutory rate $ 280,225 35 % $ 279,361 35 % $ 261,816 35 % State income tax, net of federal benefit 13,864 1.7 % 29,224 3.6 % 18,826 2.5 % Tax-exempt interest income (6,969 ) (0.9 )% (4,335 ) (0.5 )% (2,146 ) (0.3 )% (Income) losses associated with company-owned life insurance which are not (subject to tax) tax deductible (9,098 ) (1.1 )% 3,040 0.4 % (6,365 ) (0.8 )% General business tax credits (8,559 ) (1.0 )% (7,166 ) (0.9 )% (3,910 ) (0.5 )% Other, net 1,830 0.2 % (4,090 ) (0.5 )% (424 ) (0.1 )% Total provision for income tax $ 271,293 33.9 % $ 296,034 37.1 % $ 267,797 35.8 % U.S. and foreign components of income excluding noncontrolling interests and before provision for income taxes are as follows: Year ended September 30, 2016 2015 2014 (in thousands) U.S. $ 765,420 $ 782,146 $ 705,878 Foreign 35,222 16,028 42,167 Income excluding noncontrolling interest and before provision for income taxes $ 800,642 $ 798,174 $ 748,045 The cumulative effects of temporary differences that give rise to significant portions of the deferred tax asset (liability) items are as follows: September 30, 2016 2015 (in thousands) Deferred tax assets: Deferred compensation $ 192,397 $ 150,949 Allowances for loan losses and reserves for unfunded commitments 78,552 68,445 Unrealized loss associated with foreign currency translations 22,184 22,892 Unrealized loss associated with available for sale securities 4,314 7,764 Accrued expenses 44,419 40,075 Other 24,897 28,575 Total gross deferred tax assets 366,763 318,700 Less: valuation allowance (9 ) (9 ) Total deferred tax assets 366,754 318,691 Deferred tax liabilities: Partnership investments (8,518 ) (13,476 ) Goodwill and other intangibles (26,384 ) (23,967 ) Undistributed earnings of foreign subsidiaries (9,636 ) (12,592 ) Other (192 ) (1,757 ) Total deferred tax liabilities (44,730 ) (51,792 ) Net deferred tax assets $ 322,024 $ 266,899 We have a net deferred tax asset at September 30, 2016 and 2015 . This asset includes net operating losses that will expire between 2017 and 2030 . A valuation allowance for the fiscal year ended September 30, 2016 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 $322 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 $10 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, 2016 , we have approximately $204 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, 2016 , the current tax receivable included in other receivables is $48 million , and a current tax payable of $29 million is included in trade and other payables on our Consolidated Statements of Financial Condition. As of September 30, 2015 the current tax receivable included in other receivables is $36 million and a current tax payable of $47 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, 2016 , accrued interest expense related to unrecognized tax benefits decreased by approximately $1 million . During the year ended September 30, 2016 , penalty expense related to unrecognized tax benefits decreased by approximately $700 thousand . As of September 30, 2016 and 2015 , accrued interest and penalties were approximately $4 million and $6 million , respectively. The aggregate changes in the balances for uncertain tax positions are as follows: Year ended September 30, 2016 2015 2014 (in thousands) Balance for uncertain tax positions at beginning of year $ 22,454 $ 15,804 $ 13,663 Increases for tax positions related to the current year 6,496 4,954 3,228 Increases for tax positions related to prior years (1) 1,284 3,466 2,455 Decreases for tax positions related to prior years (1,592 ) (204 ) (1,642 ) Decreases due to lapsed statute of limitations (1,447 ) (1,566 ) (1,218 ) Decreases related to settlements (5,022 ) — (682 ) Balance for uncertain tax positions at end of year $ 22,173 $ 22,454 $ 15,804 (1) The increases are primarily due to tax positions taken in previously filed tax returns with certain states. We continue to evaluate these positions and intend to contest any proposed adjustments made by taxing authorities. The total amount of uncertain tax positions that, if recognized, would impact the effective tax rate (the items included in the table above after considering the federal tax benefit associated with any state tax provisions) was $16 million , $15 million , and $10 million at September 30, 2016 , 2015 , 2014 , respectively. We anticipate that the uncertain tax position balance may decrease by $2 million over the next twelve months as a result of the resolution of outstanding state tax audits. 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 2012 for state and local tax returns and fiscal year 2011 for foreign tax returns. Various state audits in process are expected to be completed in fiscal year 2017 . |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments and contingencies In the normal course of business we enter into commitments for either fixed income or equity underwritings. As of September 30, 2016 , RJ&A had seven of such open underwriting commitments, all of which were subsequently settled in open market transactions at amounts which approximate the carrying value of the commitments in our Consolidated Statements of Financial Condition as of September 30, 2016 . As of September 30, 2016 , RJ Ltd. had four equity underwriting commitments, all of which are recorded in our Consolidated Statements of Financial Condition as of September 30, 2016 , and which aggregate to approximately $6 million in Canadian currency (“CDN”). As part of our recruiting efforts, we offer loans to prospective financial advisors and certain key revenue producers primarily for recruiting, transitional cost assistance, and 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. As of September 30, 2016 we had made commitments through the extension of formal offers totaling $128 million that had not yet been funded, however, it is possible that not all of our offers will be accepted and therefore we would not fund the total amount of the offers extended. As of September 30, 2016 , $62 million of the total amount extended are unfunded commitments to prospects that had accepted our offer, or recently hired producers. In April 2016, Raymond James Global Securities Limited, a wholly owned subsidiary, entered into an agreement to sell all of its ownership interest in two joint ventures, Raymond James Latin Advisors Limited, an entity incorporated in the British Virgin Islands, and Raymond James Uruguay, S.A., an entity incorporated in Uruguay (collectively, the “Uruguay Ventures”). The sale of the Uruguay Ventures closed on October 27, 2016. In September 2016, Raymond James South American Holdings, Inc., a wholly owned subsidiary, entered into an agreement to sell all of its ownership interest in three of its subsidiaries, Raymond James Argentina S.A., RJ Delta Asset Management S.A., and RJ Delta Capital S.A., each of which is incorporated in Argentina (collectively, the “Argentine Ventures”). The Argentine Ventures currently serve, and the Uruguay Ventures served, certain Latin America markets. The Argentine Ventures sale transaction will close once all the conditions to the sale have been satisfied, including obtaining all necessary regulatory approvals, which we anticipate may occur prior to the end of calendar year 2016. The terms of sale for these transactions include customary representations and provide for certain customary indemnities in favor of the purchaser. Collectively, these sales are not anticipated to have any significant impact on our financial condition or results of operations as these Latin American operations do not have a major effect on RJF’s operations as a whole. As of September 30, 2016 , RJ Bank had not settled purchases of $122 million in syndicated loans. These loan purchases are expected to be settled within 90 days . A subsidiary of RJ Bank has committed $62 million as an investor member in a low-income housing tax credit fund in which a subsidiary of RJTCF is the managing member (see the discussion of “direct investments in LIHTC project partnerships” in Note 2 for information regarding the accounting policies governing these investments). As of September 30, 2016 , the RJ Bank subsidiary has invested $58 million of the committed amount. 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 unfunded commitments to various venture capital or private equity partnerships, which aggregate to approximately $42 million as of September 30, 2016 . Of the total, we have unfunded commitments to internally-sponsored private equity limited partnerships in which we control the general partner of approximately $18 million . As part of the terms governing the TPC acquisition (see Note 3 for additional information regarding this acquisition), on certain dates specified in the TPC purchase agreement, there are a number of “earn-out” computations to be performed. The result of these computations could result in additional cash paid to the sellers of TPC in the future. These elements of contingent consideration will be finally determined in the future based upon the outcome of either specific performance of defined tasks, or the achievement of specified revenue growth hurdles, over a measurement period ranging from 18 months to 3 years after the TPC Closing Date. Our initial estimate of the fair value of these elements of contingent consideration as of the TPC Closing Date are included in our determination of the goodwill arising from this acquisition. As of September 30, 2016 , we computed an estimate of the fair value of this contingent consideration based upon the latest information available to us, and the excess of this fair value determination over the initial estimate is included in other expense on our Consolidated Statements of Income and Comprehensive Income. As a part of the Mummert acquisition, on certain dates specified in the future, there are earn-out computations to be performed or contingent consideration provisions that may apply. These elements of contingent consideration will be finally determined based upon the achievement of specified revenue amounts and the continued employment of specified associates. See Note 3 for additional information regarding this acquisition. All of the elements of contingent consideration arising from the 3Macs and Alex. Brown acquisitions, in both cases, could only result in a return of a portion of our purchase price paid at closing, and are described in Note 3 . RJF has committed an amount of up to $225 million , subject to certain limitations and to annual review and renewal by the RJF Board of Directors, to either lend to RJTCF or to guarantee RJTCF’s obligations, in connection with RJTCF’s low-income housing development/rehabilitation and syndication activities. At September 30, 2016 , RJTCF has $76 million outstanding against this commitment. RJTCF may borrow from RJF in order to make investments in, or fund loans or advances to, either partnerships that 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, and LIHTC Funds. Long-term lease agreements expire at various times through fiscal year 2027 . Minimum annual rental payments under such agreements for the succeeding five fiscal years are approximately: $92 million in fiscal year 2017 , $81 million in fiscal year 2018 , $73 million in fiscal year 2019 , $61 million in fiscal year 2020 , $46 million in fiscal year 2021 , and $85 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 $97 million , $89 million and $91 million in fiscal years 2016 , 2015 and 2014 , respectively. As a part of our fixed income public finance operations, RJ&A enters into forward commitments to purchase GNMA or FNMA MBS (see the discussion of these activities within “financial instruments owned, financial instruments sold but not purchased and fair value” in Note 2 ). At September 30, 2016 , RJ&A had approximately $821 million principal amount of outstanding forward MBS purchase commitments which are expected to be purchased over the following 90 days . 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, RJ&A enters into 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, 2016 aggregate to a net liability having a fair value of $3 million . The estimated fair value of the purchase commitment is a $2 million asset as of September 30, 2016 . As a result of extensive regulation of financial holding companies, banks, broker-dealers and investment advisory entities, RJF and certain of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and self-regulatory organizations. The 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, or limitations on certain business activities. In addition, regulatory agencies and self-regulatory organizations institute investigations from time to time into industry practices, which can also result in the imposition of such sanctions. Refer to the “legal matter contingencies” discussion within this footnote for information about related loss contingency reserves. See Note 25 for additional information regarding regulatory capital requirements applicable to RJF and certain of its subsidiaries. Guarantees RJ Bank provides to an affiliate, RJ 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, 2016 , the exposure under these guarantees is $14 million , which was underwritten as part of RJ Bank’s corporate credit relationship with such borrowers. The outstanding interest rate swaps at September 30, 2016 have maturities ranging from October 2016 through September 2034 . 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, 2016 . The estimated total potential exposure under these guarantees is $52 million at September 30, 2016 . 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, 2016 , 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 guarantees the existing mortgage debt of RJ&A of approximately $33 million . See Note 15 for information regarding this borrowing. Our U.S. broker-dealer subsidiaries are required by federal law to be members of the Securities Investors Protection Corporation (“SIPC”). The SIPC fund provides protection for securities held in client accounts up to $500 thousand per client, with a limitation of $250 thousand on claims for cash balances. We have purchased excess SIPC coverage through various syndicates of Lloyd’s (the “Excess SIPC Insurer”). For RJ&A, our clearing broker-dealer, the additional protection currently provided has an aggregate firm limit of $750 million for cash and securities, including a sub-limit of $1.9 million per client for cash above basic SIPC. Account protection applies when a SIPC member fails financially and is unable to meet obligations to clients. This coverage does not protect against market fluctuations. RJF has provided an indemnity to the Excess SIPC Insurer against any and all losses they may incur associated with the excess SIPC policies. 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 approximately $2 million as of September 30, 2016 . RJTCF has provided a guaranteed return on investment to a third party investor in one of its fund offerings (“Fund 34”), and RJF has guaranteed RJTCF’s performance under the arrangement. Under the terms of the performance guarantee, should the underlying LIHTC project partnerships held by Fund 34 fail to deliver a certain amount of tax credits and other tax benefits to this investor over the next six years , RJTCF is obligated to pay the investor an amount that results in the investor achieving a minimum specified return on their investment. A $20.5 million financing asset is included in prepaid expenses and other assets (see Note 10 for additional information), and a related $20.5 million liability is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2016 related to this obligation. The maximum exposure to loss under this guarantee is approximately $23 million at September 30, 2016 , which represents the undiscounted future payments due the investor. Legal and regulatory matter contingencies In addition to the matters specifically described below, in the normal course of our business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with our activities as a diversified financial services institution. We are also subject, from time to time, to other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding our business. Such proceedings may involve, among other things, our sales and trading activities, financial products or offerings we sponsored, underwrote or sold, and operational matters. Some of these proceedings have resulted, and may in the future result, in adverse judgments, settlements, fines, penalties, injunctions or other relief and/or require us to undertake remedial actions. We cannot predict if, how or when such proceedings or investigations will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be. A large number of factors may contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental proceedings, potential fines and penalties); the matters present significant legal uncertainties; we have not engaged in settlement discussions; discovery is not complete; there are significant facts in dispute; and numerous parties are named as defendants (including where it is uncertain how liability might be shared among defendants). We contest liability and/or the amount of damages as appropriate in each pending matter. Over the last several years, the level of litigation and investigatory activity (both formal and informal) by government and self-regulatory agencies has increased significantly in the financial services industry. While we have identified below certain proceedings that we believe could be material, individually or collectively, there can be no assurance that material losses will not be incurred from claims that have not yet been asserted or are not yet determined to be material. We include in some of the descriptions of individual matters below certain quantitative information about the plaintiff’s claim against us as alleged in the plaintiff’s pleadings or other public filings. Although this information may provide insight into the potential magnitude of a matter, it does not represent our estimate of reasonably possible loss or our judgment as to any currently appropriate accrual related thereto. Subject to the foregoing, we believe, after consultation with counsel and consideration of the accrued liability amounts included in the accompanying consolidated financial statements, that the outcome of such litigation and regulatory proceedings will not have a material adverse effect on our consolidated financial condition. However, the outcome of such litigation and proceedings could be material to our operating results and cash flows for a particular future period, depending on, among other things, our revenues or income for such period. Excluding contingent liabilities arising out of the matters specifically described below, as well as any amounts subject to the below-described indemnification from Regions, as of September 30, 2016 , we currently estimate that the aggregate range of possible loss is from $0 to $10 million in excess of the accrued liability (if any) related to litigation or regulatory matters. Refer to Note 2 for a discussion of our criteria for recognizing liabilities for contingencies related to such matters. We and one of our financial advisors are named defendants in various lawsuits related to an alleged fraudulent scheme conducted by Ariel Quiros (“Quiros”) and William Stenger (“Stenger”) involving the misuse of EB-5 investor funds in connection with the Jay Peak ski resort in Vermont (“Jay Peak”) and associated limited partnerships. Plaintiffs in the lawsuits allege that Quiros misused $200 million of the amounts raised by the limited partnerships and misappropriated $50 million for his personal benefit. There are six civil court actions pending in which we or one of our subsidiaries are named. The plaintiffs variously demand, among other things, compensatory damages, treble damages under the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and punitive damages. Given the early stage of the cases, the complexity of the forensic accounting necessary to determine the amount of actual investor losses, the identification and availability of any assets for recovery by the plaintiffs and the potential for insurance coverage, a range of possible loss in excess of the amount accrued cannot be estimated. While there can be no assurance that we will be successful, we intend to vigorously defend the claims against us. Morgan Keegan Litigation Indemnification from Regions Under the agreement with Regions Financial Corporation (“Regions”) governing our 2012 acquisition of Morgan Keegan & Company, Inc., and MK Holding, Inc. and certain of its affiliates (collectively referred to as “Morgan Keegan”), Regions is obligated to indemnify RJF for losses we may incur in connection with any Morgan Keegan legal proceedings pending as of the closing date for that transaction (which was April 2, 2012), or commenced after the closing date but related to pre-closing matters that are received prior to April 2, 2015. The Morgan Keegan matter described below is subject to such indemnification provisions. As of September 30, 2016 , management estimates the range of potential liability of all Morgan Keegan matters subject to indemnification, including the cost of defense, to be from $16 million to $51 million . Any loss arising from such matters, after application of any contractual thresholds and other reductions, as set forth in the agreement, will be borne by Regions. As of September 30, 2016 our Consolidated Statements of Financial Condition include an indemnification asset of approximately $35 million which is included in other assets (see Note 10 for additional information), and a liability for potential losses of approximately $35 million which is included within trade and other payables, pertaining to the Morgan Keegan matters subject to indemnification. 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. Morgan Keegan matter (subject to indemnification) In July 2006, Morgan Keegan & Company, Inc., a Morgan Keegan affiliate, and one of its former analysts were named as defendants in a lawsuit filed by Fairfax Financial Holdings and affiliates in the Circuit Court of Morris County, New Jersey. Plaintiffs made claims under a civil 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 in order to improperly drive down plaintiff’s stock price, so that others could profit from short positions. Plaintiffs alleged that the defendants’ actions damaged their reputations and harmed their business relationships. Plaintiffs alleged various categories of damages, 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, and that the claims were therefore not subject to treble damages. On June 27, 2012, the trial court dismissed plaintiffs’ tortious interference with prospective relations claim, but allowed the other claims to go forward. Prior to commencement of a jury trial, the court dismissed the remaining claims with prejudice. A hearing on plaintiffs’ appeal of the court’s rulings was held on October 17, 2016. |
OTHER COMPREHENSIVE (LOSS) INCO
OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE (LOSS) INCOME | OTHER COMPREHENSIVE (LOSS) INCOME Other comprehensive (loss) income The activity in other comprehensive (loss) income net of the related tax effects are as follows: Year ended September 30, 2016 2015 2014 (in thousands) Unrealized (losses) gains on available for sale securities $ (5,576 ) $ (3,325 ) $ 6,021 Unrealized gains (losses) on currency translations net of the impact of net investment hedges 2,179 (30,640 ) (18,635 ) Unrealized loss on cash flow hedges (11,833 ) (4,650 ) — Net other comprehensive loss $ (15,230 ) $ (38,615 ) $ (12,614 ) Accumulated other comprehensive (loss) income The following table presents the changes, and the related tax effects, of each component of accumulated other comprehensive (loss) income for the fiscal years ended September 30, 2016 and 2015 (in thousands): Net investment hedges (1) Currency translations Sub-total: net investment hedges and currency translations Available for sale securities Cash flow hedges (2) Total Year ended September 30, 2016 Accumulated other comprehensive income (loss) as of the beginning of the year $ 93,203 $ (130,476 ) $ (37,273 ) $ 1,420 $ (4,650 ) $ (40,503 ) Other comprehensive (loss) income before reclassifications and taxes (10,743 ) 9,397 (1,346 ) (9,231 ) (25,535 ) (36,112 ) Amounts reclassified from accumulated other comprehensive income (loss), before tax — — — 360 6,450 6,810 Pre-tax other comprehensive (loss) income (10,743 ) 9,397 (1,346 ) (8,871 ) (19,085 ) (29,302 ) Income tax effect 4,022 (497 ) 3,525 3,295 7,252 14,072 Net other comprehensive (loss) income for the year, net of tax (6,721 ) 8,900 2,179 (5,576 ) (11,833 ) (15,230 ) Accumulated other comprehensive income (loss) as of September 30, 2016 $ 86,482 $ (121,576 ) $ (35,094 ) $ (4,156 ) $ (16,483 ) $ (55,733 ) Year ended September 30, 2015 Accumulated other comprehensive income (loss) as of the beginning of the year $ 32,872 $ (39,505 ) $ (6,633 ) $ 4,745 $ — $ (1,888 ) Other comprehensive income (loss) before reclassifications and taxes 96,499 (96,061 ) 438 2,863 (9,407 ) (6,106 ) Amounts reclassified from accumulated other comprehensive loss, before tax — — — (8,434 ) 1,907 (6,527 ) Pre-tax other comprehensive income (loss) 96,499 (96,061 ) 438 (5,571 ) (7,500 ) (12,633 ) Income tax effect (36,168 ) 5,090 (31,078 ) 2,246 2,850 (25,982 ) Net other comprehensive income (loss) for the year, net of tax 60,331 (90,971 ) (30,640 ) (3,325 ) (4,650 ) (38,615 ) Accumulated other comprehensive income (loss) as of September 30, 2015 $ 93,203 $ (130,476 ) $ (37,273 ) $ 1,420 $ (4,650 ) $ (40,503 ) (1) Comprised of forward foreign exchange derivatives associated with hedges of RJ Bank’s foreign currency exposure due to its non-U.S. dollar net investments (see Note 18 for additional information on these derivatives). (2) Represents RJ Bank Interest Hedges (see Note 18 for additional information on these derivatives). Reclassifications out of AOCI The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive income (loss), and the related tax effects, during the years ended September 30, 2016 and 2015 : Accumulated other comprehensive income (loss) components: Increase (decrease) in amounts reclassified from accumulated other comprehensive (loss) income Affected line items in income statement (in thousands) Year ended September 30, 2016 Available for sale securities: (1) Auction rate securities (2) $ 87 Other revenue RJ Bank available for sale securities (3) 273 Other revenue RJ Bank Interest Hedges (4) 6,450 Interest expense 6,810 Total before tax Income tax effect (2,590 ) Provision for income taxes Total reclassifications for the period $ 4,220 Net of tax Year ended September 30, 2015 Available for sale securities: (1) Auction rate securities (2) $ (8,976 ) Other revenue RJ Bank available for sale securities (3) 542 Other revenue RJ Bank Interest Hedges (4) 1,907 Interest expense (6,527 ) Total before tax Income tax effect 2,526 Provision for income taxes Total reclassifications for the period $ (4,001 ) Net of tax (1) See Note 7 for additional information regarding the available for sale securities, and Note 5 for additional fair value information regarding these securities. (2) Other revenues in our Consolidated Statements of Income and Comprehensive Income include realized gains on the sale of ARS (see Note 7 for further information). The amounts presented in the table represent the reversal out of AOCI associated with such ARS’ sold. The net of such realized gain and this reversal out of AOCI represents the net effect of such redemptions and sales activities on OCI for each respective fiscal year, on a pre-tax basis. (3) Other revenues in our Consolidated Statements of Income and Comprehensive Income include realized gains or losses on the sale of certain available for sale securities held by RJ Bank (see Note 7 for further information). The amounts presented in the table represent the reversal out of AOCI associated with such securities sold. The net of such realized gains or losses and this reversal out of AOCI represents the net effect of such sales activities on OCI for each respective period, on a pre-tax basis. (4) See Note 18 for additional information regarding the RJ Bank Interest Hedges, and Note 5 for additional fair value information regarding these derivatives. All of the components of other comprehensive (loss) income described above, net of tax, are attributable to RJF. |
INTEREST INCOME AND INTEREST EX
INTEREST INCOME AND INTEREST EXPENSE | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 2014 (in thousands) Interest income: Margin balances $ 68,712 $ 67,573 $ 68,454 Assets segregated pursuant to regulations and other segregated assets 22,287 13,792 15,441 Bank loans, net of unearned income 487,366 405,578 343,942 Available for sale securities 7,596 5,100 6,560 Trading instruments 19,362 19,450 17,883 Stock loan 8,777 12,036 8,731 Loans to financial advisors 8,207 7,056 6,427 Corporate cash and all other 18,018 12,622 13,448 Total interest income $ 640,325 $ 543,207 $ 480,886 Interest expense: Brokerage client liabilities $ 2,084 $ 940 $ 1,269 Retail bank deposits 10,218 (1) 8,382 7,959 Trading instruments sold but not yet purchased 5,035 4,503 4,327 Stock borrow 3,174 5,237 2,869 Borrowed funds 12,957 6,079 3,939 Senior notes 78,533 76,088 76,038 Interest expense of consolidated VIEs 1,021 1,879 2,900 Other 4,055 4,846 4,790 Total interest expense 117,077 107,954 104,091 Net interest income 523,248 435,253 376,795 Subtract: provision for loan losses (28,167 ) (23,570 ) (13,565 ) Net interest income after provision for loan losses $ 495,081 $ 411,683 $ 363,230 (1) The balance for the year ended September 30, 2016 is presented net of interest expense associated with affiliate deposits. The impact of such expense on prior year periods was not significant. |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
SHARE-BASED AND OTHER COMPENSATION | SHARE-BASED AND OTHER COMPENSATION Employee share-based and other compensation 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, at 65, or if a participant separates from service due to death or disability. 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, 2016 and 2015 was approximately 4,873,000 and 4,719,000 , respectively. The market value of our common stock held by the ESOP at September 30, 2016 was approximately $284 million , of which approximately $3 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 75% of the first $1,000 and 25% of the next $1,000 of eligible 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 (see Note 10 for information regarding the carrying value of these insurance policies) to earn a competitive rate of return for participants and to provide the primary source of funds available to satisfy our obligations under this plan (the “Deferral Plan Funding Structure”). Contributions to the qualified plans and the LTIP, are approved annually by the Board of Directors or a committee thereof. We have a Voluntary Deferred Compensation Plan (the “VDCP”), a non-qualified and voluntary opportunity for certain highly compensated employees to defer compensation. Eligible participants may elect to defer a percentage or specific dollar amount of their compensation into the VDCP. The Deferral Plan Funding Structure is the primary source of funding for this plan. We also maintain non-qualified deferred compensation plans or arrangements for the benefit of certain employees that provide a return to the participating employees based upon the performance of various referenced investments. Under the terms of each applicable plan or arrangement, we invest directly as a principal in such investments, which are directly related to our obligations under the respective deferred compensation plan (see Note 5 for the fair value of these investments as of September 30, 2016 , and 2015 ). Compensation expense associated with all of the qualified and non-qualified plans described above totaled $116.9 million , $116.9 million and $111.3 million for the fiscal years ended September 30, 2016 , 2015 and 2014 , 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. 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 may be granted to key administrative employees and employee financial advisors who achieve certain gross commission levels. Options are exercisable in the 36 th to 84 th 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, in some instances, retired. Options are granted with an exercise price equal to the market price of our stock on the grant date. Expense and income tax benefits related to our stock options awards granted to employees are presented below: Year ended September 30, 2016 2015 2014 (in thousands) Total share-based expense $ 10,114 $ 10,169 $ 9,068 Income tax benefits related to share-based expense $ 769 $ 811 $ 667 For the year ended September 30, 2016 , we realized $2 million of cumulative excess tax benefits related to our stock option awards. These amounts may not be representative of future share-based compensation expense since the estimated fair value of stock options is amortized over the requisite service period using the straight-line method, and in certain instances the graded vesting attribution method, and additional options may be granted in future years. The fair value of each fixed option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for stock option grants in the fiscal years ended September 30, 2016 , 2015 and 2014 : Year ended September 30, 2016 2015 2014 Dividend yield 1.41 % 1.30 % 1.33 % Expected volatility 28.85 % 29.55 % 39.84 % Risk-free interest rate 1.65 % 1.66 % 1.43 % Expected lives (in years) 5.37 5.48 5.50 The dividend yield assumption is based on our declared dividend as a percentage of the stock price at the date of the grant. The expected volatility assumption is based on our historical stock price and is a weighted average combining (1) the volatility of the most recent year, (2) the volatility of the most recent time period equal to the expected lives assumption, (3) the implied volatility of option contracts of RJF stock, and (4) the annualized volatility of the price of our stock since the late 1980s. The risk-free interest rate assumption is based on the U.S. Treasury yield curve in effect at the time of grant of the options. The expected lives assumption is based on the average of (1) the assumption that all outstanding options will be exercised at the midpoint between their vesting date and full contractual term and (2) the assumption that all outstanding options will be exercised at their full contractual term. A summary of option activity for grants to employees for the fiscal year ended September 30, 2016 is presented below: Options for shares Weighted- average exercise price ($) Weighted- average remaining contractual term (years) Aggregate intrinsic value ($) Outstanding at October 1, 2015 4,061,354 $ 41.49 Granted 351,223 $ 56.46 Exercised (625,194 ) $ 29.25 Forfeited (76,910 ) $ 46.42 Outstanding at September 30, 2016 3,710,473 $ 44.88 3.50 $ 49,479,000 Exercisable at September 30, 2016 639,607 $ 31.54 1.35 $ 17,058,000 As of September 30, 2016 , there was $19.3 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 2.74 years. The following stock option activity occurred under the 2012 Plan for grants to employees: Year ended September 30, 2016 2015 2014 (in thousands, except per option amounts) Weighted-average grant date fair value per option $ 13.96 $ 14.36 $ 16.21 Total intrinsic value of stock options exercised $ 16,273 $ 29,574 $ 15,570 Total grant date fair value of stock options vested $ 7,690 $ 10,483 $ 5,004 Cash received from stock option exercises during the fiscal year ended September 30, 2016 was $13.7 million . 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 our 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 $250,000 . The determination of the number of units or shares to be granted is determined by the Corporate Governance, Nominating and Compensation Committee of the Board of Directors. Under the plan, the awards are generally restricted for a three to five year period, during which time the awards are forfeitable in the event of termination other than for death, disability or retirement. Prior to February 2011, non-employee members of our Board of Directors had been granted stock option awards annually. Commencing in February 2011, restricted stock unit awards are issued annually to such members of our Board of Directors, in lieu of stock option awards. The restricted stock units granted to these Directors vest over a one year period from their grant date, provided that the director is still serving on our Board of Directors at the end of such period. The following restricted stock award activity for grants to employees and members of our Board of Directors occurred during the fiscal year ended September 30, 2016 : Shares/Units Weighted- average grant date fair value ($) Non-vested at October 1, 2015 4,684,373 $ 42.29 Granted 1,322,958 $ 56.14 Vested (1,053,903 ) $ 35.20 Forfeited (146,267 ) $ 40.35 Non-vested at September 30, 2016 4,807,161 $ 47.71 Expense and income tax benefits related to our restricted stock awards granted to our employees and members of our Board of Directors are presented below: Year ended September 30, 2016 2015 2014 (in thousands) Total share-based expense $ 62,624 $ 57,587 $ 54,666 Income tax benefits related to share-based expense $ 21,960 $ 20,467 $ 19,105 For the year ended September 30, 2016 , we realized $32.8 million of cumulative excess tax benefits related to our restricted stock awards. As of September 30, 2016 , there was $95 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 2.81 years. The total fair value of shares and unit awards vested under this plan during the fiscal year ended September 30, 2016 was $35.7 million . Restricted stock awards associated with Alex. Brown As part of our acquisition of Alex. Brown, RJ&A assumed certain DBRSU awards, including the associated plan terms and conditions. The DBRSU awards contain performance conditions based on Deutsche Bank and subsidiaries attaining certain financial results and will ultimately be settled in DB common stock, as traded on the NYSE, provided the performance metrics are achieved. These awards are generally restricted for a three to six year period from their grant date, during which time the awards are subject to forfeiture in the event of termination other than for death, disability or retirement. The DBRSUs are accounted for as a derivative, see Note 18 for additional information. On the AB Closing Date, we assumed 1,357,449 of DBRSUs, none of which have either vested, or been forfeited, during the remainder of the fiscal year ended September 30, 2016 . The per unit fair value of the DBSRUs at the AB Closing Date was $14.90 per unit, and the DBRSUs per unit fair value as of September 30, 2016 was $13.09 . As of September 30, 2016 , there was a $15.2 million prepaid compensation asset included in prepaid expenses and other assets in our Consolidated Statements of Financial Condition related to these DBRSUs (see Note 10 ). This asset is expected to be amortized over a weighted-average period of approximately three years . As of September 30, 2016 , there was a $17.8 million derivative liability included in accrued compensation, commissions and benefits in our Consolidated Statements of Financial Condition based on the September 30, 2016 fair value of DB shares of $13.09 . Subsequent to the AB Closing Date, the net impact of the DBRSUs in our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2016 , including the related income tax effects, is presented below: Year ended September 30, 2016 (in thousands) Amortization of DBRSU prepaid compensation asset $ 355 Change in fair value of derivative liability (gain) (2,457 ) Net gain before tax $ (2,102 ) Income tax expense $ 799 We hold 900,000 shares of DB as of September 30, 2016 as an economic hedge against this obligation, such shares are included in other assets on our Consolidated Statements of Financial Condition. For the period ended September 30, 2016 , a loss in the fair value of these holdings since the AB Closing Date in the amount of $1.6 million is included in compensation, commissions and benefits expense which offsets a portion of the gain reflected above. 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, 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 average high and low market price on the day prior to the purchase date. Under the plan we sold approximately 557,000 , 430,000 and 397,000 shares to employees during the years ended September 30, 2016 , 2015 and 2014 , respectively. The compensation cost is calculated as the value of the 15% discount from market value and was $4.2 million , $3.5 million and $3 million during the fiscal years ended September 30, 2016 , 2015 and 2014 , respectively. Employee investment funds Certain key employees participate in the EIF Funds, which are limited partnerships that invest in certain of our private equity 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. We have various employee investment funds. Certain key employees participate in these funds, which are limited partnerships that invest in certain unaffiliated venture capital limited partnerships. Non-employee share-based and other compensation Share-based compensation Under the 2012 Plan, we may grant stock options, restricted shares of common stock or restricted stock units to our independent contractor financial advisors. The 2012 Plan is the successor to the prior plan under which options, restricted stock or restricted stock units have been issued to independent contractors. 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. In addition, we classify non-employee option awards as liabilities at fair value upon vesting, with changes in fair value reported in earnings until these awards are exercised or forfeited. The outstanding stock options and restricted stock units granted to our independent contractors are not material as of September 30, 2016 . Other compensation We also offer non-qualified deferred compensation plans that provide benefits to our independent contractor financial advisors who meet certain production requirements. The Deferral Plan Funding Structure is the primary source of funding for this plan. The contributions are made in amounts approved annually by management. Certain independent contractor financial advisors are eligible to participate in our VDCP. Eligible participants may elect to defer a percentage or specific dollar amount of their compensation into the VDCP. The Deferral Plan Funding Structure is the primary source of funding for this plan. |
REGULATORY AND CAPITAL REQUIREM
REGULATORY AND CAPITAL REQUIREMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS RJF, as a financial holding company, RJ Bank, and our broker-dealer subsidiaries are subject to oversight by various regulatory authorities. Capital levels of each entity are monitored to assess the capital positions to ensure compliance with our various regulatory capital requirements. 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 financial results. Under capital adequacy guidelines, 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 report regulatory capital under Basel III under the standardized approach. Various aspects of the Basel III rules are subject to multi-year transition periods through December 31, 2018. 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), Tier 1 capital to average assets (as defined), and under rules defined in Basel III, Common equity Tier 1 capital (“CET1”) to risk-weighted assets. RJF and RJ Bank each calculate these ratios in order to assess compliance with both regulatory requirements and their internal capital policies. Effective January 1, 2016, the minimum CET1, Tier 1 Capital, and Total Capital ratios of RJF and RJ Bank are supplemented by an incremental capital conservation buffer, consisting entirely of capital that qualifies as CET1, that phases in beginning on January 1, 2016 in increments of 0.625% per year until it reaches 2.5% of risk weighted assets on January 1, 2019. The capital conservation buffer is intended to be used to absorb potential losses in times of financial or economic stress. If not maintained, we could be limited in the amount of certain discretionary bonuses that may be paid and the amount of capital that may be distributed, including dividends and common equity repurchases. As of September 30, 2016 , RJF’s and RJ Bank’s capital conservation buffers were 13.6% and 6.0% , respectively. The applicable required capital conservation buffer for each as of September 30, 2016 was 0.625% . At current capital levels, RJF and RJ Bank are each categorized as “well capitalized.” To meet requirements for capital adequacy purposes or to be categorized as “well capitalized,” RJF must maintain minimum Common equity Tier 1, Tier 1 risk-based, Total risk-based, and Tier 1 leverage amounts and ratios as set forth in the table below. Actual Requirement for capital adequacy purposes To be well capitalized under regulatory provisions Amount Ratio Amount Ratio Amount Ratio ($ in thousands) RJF as of September 30, 2016: Common equity Tier 1 capital $ 4,421,956 20.6 % $ 966,341 4.5 % $ 1,395,825 6.5 % Tier 1 capital $ 4,421,956 20.6 % $ 1,288,454 6.0 % $ 1,717,939 8.0 % Total capital $ 4,636,009 21.6 % $ 1,717,939 8.0 % $ 2,147,424 10.0 % Tier 1 leverage $ 4,421,956 15.0 % $ 1,177,840 4.0 % $ 1,472,300 5.0 % RJF as of September 30, 2015: Common equity Tier 1 capital $ 4,101,353 22.1 % $ 834,677 4.5 % $ 1,205,644 6.5 % Tier 1 capital $ 4,101,353 22.1 % $ 1,112,902 6.0 % $ 1,483,869 8.0 % Total capital $ 4,290,431 23.1 % $ 1,483,869 8.0 % $ 1,854,837 10.0 % Tier 1 leverage $ 4,101,353 16.1 % $ 1,018,859 4.0 % $ 1,273,574 5.0 % The decrease in RJF’s Total capital and Tier 1 capital ratios at September 30, 2016 compared to September 30, 2015 was primarily the result of the significant growth of RJ Bank’s corporate loan portfolio, the repurchase of our common stock in open market transactions, and the fiscal year 2016 acquisitions of Alex. Brown and 3Macs (see Note 3 for additional information regarding these acquisitions). These deployments of excess capital were partially offset by positive earnings during the year ended September 30, 2016 . To meet the requirements for capital adequacy or to be categorized as “well capitalized,” RJ Bank must maintain Common equity Tier 1, Tier 1 risk-based, Total risk-based, and Tier 1 leverage amounts and ratios as set forth in the table below. Actual Requirement for capital adequacy purposes To be well capitalized under regulatory provisions Amount Ratio Amount Ratio Amount Ratio ($ in thousands) RJ Bank as of September 30, 2016: Common equity Tier 1 capital $ 1,675,890 12.7 % $ 592,864 4.5 % $ 856,360 6.5 % Tier 1 capital $ 1,675,890 12.7 % $ 790,486 6.0 % $ 1,053,981 8.0 % Total capital $ 1,841,112 14.0 % $ 1,053,981 8.0 % $ 1,317,476 10.0 % Tier 1 leverage $ 1,675,890 9.9 % $ 675,939 4.0 % $ 844,924 5.0 % RJ Bank as of September 30, 2015: Common equity Tier 1 capital $ 1,525,942 13.0 % $ 526,577 4.5 % $ 760,611 6.5 % Tier 1 capital $ 1,525,942 13.0 % $ 702,103 6.0 % $ 936,137 8.0 % Total capital $ 1,672,577 14.3 % $ 936,137 8.0 % $ 1,170,171 10.0 % Tier 1 leverage $ 1,525,942 10.9 % $ 558,829 4.0 % $ 698,536 5.0 % The slight decrease in RJ Bank’s Total and Tier 1 capital ratios at September 30, 2016 compared to September 30, 2015 was primarily due to significant growth in corporate loans. Our intention is to maintain RJ Bank’s “well capitalized” status. In the unlikely event that RJ Bank failed to maintain its “well capitalized” status, the consequences could include a requirement to obtain a waiver from the FDIC 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 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 and RJFS have each elected. Regulations require that minimum net capital, as defined, be equal to the greater of $1 million , ( $250 thousand for RJFS as of September 30, 2016 ) or two percent of aggregate debit items arising from client balances. FINRA may require a member firm to reduce its business if its net capital is less than four percent of Aggregate Debit Items and may prohibit a member firm from expanding its business and declaring cash dividends if its net capital is less than five percent of aggregate debit items. The net capital position of our wholly owned broker-dealer subsidiary RJ&A is as follows: As of September 30, 2016 2015 ($ in thousands) Raymond James & Associates, Inc.: (Alternative Method elected) Net capital as a percent of aggregate debit items 19.61 % 20.85 % Net capital $ 512,594 $ 411,222 Less: required net capital (52,287 ) (39,452 ) Excess net capital $ 460,307 $ 371,770 The net capital position of our wholly owned broker-dealer subsidiary RJFS is as follows: As of September 30, 2016 2015 (in thousands) Raymond James Financial Services, Inc.: (Alternative Method elected) Net capital $ 27,013 $ 25,828 Less: required net capital (250 ) (250 ) Excess net capital $ 26,763 $ 25,578 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, 2016 or 2015 . The risk adjusted capital of RJ Ltd. is as follows (in Canadian currency): As of September 30, 2016 2015 (in thousands) Raymond James Ltd.: Risk adjusted capital before minimum $ 77,110 $ 127,097 Less: required minimum capital (250 ) (250 ) Risk adjusted capital $ 76,860 $ 126,847 The substantial decrease in risk adjusted capital of RJ Ltd. at September 30, 2016 compared to September 30, 2015 was primarily the result of its deployment of excess capital during fiscal year 2016 to fund a significant portion of the acquisition of 3Macs (see Note 3 for additional information regarding the acquisition). Raymond James Trust, N.A., (“RJ Trust”) is regulated by the OCC and is required to maintain sufficient capital. As of September 30, 2016 and 2015 , RJ Trust met the requirements. At September 30, 2016 , 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, 2016 | |
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. In a number of instances in the discussions that follow, reference is made to collateral. Note 19 provides additional information regarding the recorded balances in the Consolidated Statements of Financial Condition and the collateral balances related thereto. 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 $91.5 million and securities loaned was $69.6 million at September 30, 2016 , and the market value of securities borrowed was $83.4 million and securities loaned was $39.7 million at September 30, 2015 . The contract value of securities borrowed and securities loaned was $93.4 million and $75.8 million , respectively, at September 30, 2016 and the contract value of securities borrowed and securities loaned was $86.3 million and $44.4 million , respectively, at September 30, 2015 . 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 $595.3 million and $432.6 million at September 30, 2016 and 2015 , respectively. The contract value of securities loaned was $602 million and $434.2 million at September 30, 2016 and 2015 , 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 $329 million and $288 million at September 30, 2016 and 2015 , 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 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. As a part of our fixed income public finance operations, RJ&A enters into forward commitments to purchase GNMA or FNMA MBS. See Note 2 and Note 21 for information on these commitments. We utilize TBA security contracts to hedge our interest rate risk associated with these commitments. We are subject to loss if the timing of, or the actual amount of, the MBS securities differs significantly from the term and notional amount of the TBA security contracts we enter into. RJ Ltd. is subject to foreign exchange risk primarily due to financial instruments denominated 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, 2016 , forward contracts outstanding to buy and sell U.S. dollars totaled CDN $24.2 million and CDN $23.6 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 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. RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding are as follows: As of September 30, 2016 2015 (in thousands) Standby letters of credit $ 29,686 $ 60,925 Open end consumer lines of credit (primarily SBL) $ 3,616,933 $ 2,531,690 Commercial lines of credit $ 1,430,630 $ 1,419,746 Unfunded loan commitments $ 354,556 $ 322,419 In the normal course of business, RJ Bank issues, or participates in the issuance of 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, 2016 , $29.7 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 primarily represent the unfunded amounts of RJ Bank loans to customers that are 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 of RJ Bank’s 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 2014 (in thousands, except per share amounts) Income for basic earnings per common share: Net income attributable to RJF $ 529,350 $ 502,140 $ 480,248 Less allocation of earnings and dividends to participating securities (1) (1,256 ) (1,610 ) (3,007 ) Net income attributable to RJF common shareholders $ 528,094 $ 500,530 $ 477,241 Income for diluted earnings per common share: Net income attributable to RJF $ 529,350 $ 502,140 $ 480,248 Less allocation of earnings and dividends to participating securities (1) (1,236 ) (1,580 ) (2,946 ) Net income attributable to RJF common shareholders $ 528,114 $ 500,560 $ 477,302 Common shares: Average common shares in basic computation 141,773 142,548 139,935 Dilutive effect of outstanding stock options and certain restricted stock units 2,740 3,391 3,654 Average common shares used in diluted computation 144,513 145,939 143,589 Earnings per common share: Basic $ 3.72 $ 3.51 $ 3.41 Diluted $ 3.65 $ 3.43 $ 3.32 Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive 3,255 2,849 1,503 (1) Represents dividends paid during the year 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 346 thousand , 464 thousand and 887 thousand for the years ended September 30, 2016 , 2015 and 2014 , respectively. Dividends paid to participating securities amounted to $236 thousand , $300 thousand and $500 thousand for the years ended September 30, 2016 , 2015 , and 2014 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, 2016 2015 2014 Dividends per common share - declared $ 0.80 $ 0.72 $ 0.64 Dividends per common share - paid $ 0.78 $ 0.70 $ 0.62 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We currently operate through the following five business segments: “Private Client Group;” “Capital Markets;” “Asset Management;” RJ Bank; and the “Other” segment. 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 results include charges allocating most corporate overhead and benefits to each segment, refer to the discussion of the Other segment below for a description of the corporate expenses that are not allocated to segments. Intersegment revenues, expenses, 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 debt and equity underwritings, merger and acquisition services, public finance activities, and the operations of RJTCF. The Asset Management segment includes the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of RJ&A, trust services of RJ Trust, and other fee-based asset management programs. RJ Bank provides corporate loans, securities based loans and residential loans. RJ Bank is active in corporate loan syndications and participations. RJ Bank also provides FDIC insured deposit accounts to clients of our broker-dealer subsidiaries and to the general public. RJ Bank generates net interest revenue principally through the interest income earned on loans and investments, which is offset by the interest expense it pays on client deposits and on its borrowings. The Other segment includes our principal capital and private equity activities as well as certain corporate overhead costs of RJF that are not allocated to operating segments including the interest costs on our public debt, and the acquisition and integration costs associated with certain of our acquisitions (see Note 3 for additional information). Information concerning operations in these segments of business is as follows: Year ended September 30, 2016 2015 2014 (in thousands) Revenues: Private Client Group $ 3,626,718 $ 3,519,558 $ 3,289,503 Capital Markets 1,016,375 975,064 968,635 Asset Management 404,421 392,378 369,690 RJ Bank 517,243 425,988 360,317 Other 46,291 66,967 42,203 Intersegment eliminations (90,704 ) (71,791 ) (64,888 ) Total revenues (1) $ 5,520,344 $ 5,308,164 $ 4,965,460 Income (loss) excluding noncontrolling interests and before provision for income taxes: Private Client Group $ 340,564 $ 342,243 $ 330,278 Capital Markets 139,173 107,009 130,565 Asset Management 132,158 135,050 128,286 RJ Bank 337,296 278,721 242,834 Other (148,548 ) (64,849 ) (83,918 ) Pre-tax income excluding noncontrolling interests 800,643 798,174 748,045 Add: net loss attributable to noncontrolling interests (23,272 ) (21,462 ) (32,097 ) Income including noncontrolling interests and before provision for income taxes $ 777,371 $ 776,712 $ 715,948 (1) No individual client accounted for more than ten percent of total revenues in any of the years presented. Year ended September 30, 2016 2015 2014 (in thousands) Net interest income (expense): Private Client Group $ 97,042 $ 88,842 $ 89,527 Capital Markets 8,339 7,634 5,326 Asset Management 183 127 92 RJ Bank 478,690 403,578 346,757 Other (61,006 ) (64,928 ) (64,907 ) Net interest income $ 523,248 $ 435,253 $ 376,795 The following table presents our total assets on a segment basis: September 30, 2016 2015 (in thousands) Total assets: Private Client Group (1) $ 10,317,681 $ 6,870,379 Capital Markets (2) 3,064,076 2,780,733 Asset Management 133,190 187,378 RJ Bank 16,613,391 14,191,566 Other 1,465,395 2,437,976 Total $ 31,593,733 $ 26,468,032 (1) Includes $275.5 million and $186.7 million of goodwill at September 30, 2016 and 2015 , respectively. (2) Includes $132.6 million and $120.9 million of goodwill at September 30, 2016 and 2015 , 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, 2016 2015 2014 (in thousands) Revenues: United States $ 5,118,760 $ 4,911,304 $ 4,512,808 Canada 278,652 279,200 323,038 Europe 85,718 85,289 95,865 Other 37,214 32,371 33,749 Total $ 5,520,344 $ 5,308,164 $ 4,965,460 Pre-tax income (loss) excluding noncontrolling interests: United States $ 778,351 $ 784,517 $ 706,366 Canada 20,243 17,770 37,947 Europe (3,791 ) (6,852 ) (1,546 ) Other 5,840 2,739 5,278 Total $ 800,643 $ 798,174 $ 748,045 Our total assets, classified by major geographic area in which they are held, are presented below: September 30, 2016 2015 (in thousands) Total assets: United States (1) $ 29,218,939 $ 24,531,993 Canada (2) 2,275,056 1,814,178 Europe 61,067 (3) 36,669 Other 38,671 85,192 Total $ 31,593,733 $ 26,468,032 (1) Includes $356.3 million and $274.6 million of goodwill at September 30, 2016 and 2015 , respectively. (2) Includes $42.7 million and $33 million of goodwill at September 30, 2016 and 2015 , respectively. (3) Includes $9.1 million of goodwill at September 30, 2016 . |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | 12 Months Ended |
Sep. 30, 2016 | |
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 the net capital requirements of those other subsidiaries are much less significant). 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, 2016 , each of these brokerage subsidiaries far exceeded their minimum net capital requirements, see Note 25 for further information. Subsidiary net assets of approximately $2.08 billion as of September 30, 2016 are restricted under regulatory or other restrictions from being transferred from certain subsidiaries to the Parent, without prior approval of the respective entities’ regulator. 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 the available amounts are not as significant as those amounts described above. The Parent regularly receives a portion of the profits of subsidiaries, other than RJ Bank, as dividends. See Notes 15 , 17 , 21 and 25 for more information regarding borrowings, commitments, contingencies and guarantees, and capital and regulatory requirements of the Parent and its subsidiaries. The following table presents the Parent’s statements of financial condition: September 30, 2016 2015 (in thousands) Assets: Cash and cash equivalents (1) $ 371,978 $ 746,042 Intercompany receivables from subsidiaries: Bank subsidiary — 82 Non-bank subsidiaries (2) 1,228,046 853,222 Investments in consolidated subsidiaries: Bank subsidiary 1,658,663 1,519,263 Non-bank subsidiaries 3,118,961 2,378,129 Property and equipment, net 14,891 10,602 Goodwill and identifiable intangible assets, net 31,954 31,954 Other assets 611,667 616,526 Total assets $ 7,036,160 $ 6,155,820 Liabilities and equity: Trade and other $ 81,340 $ 78,945 Intercompany payables to subsidiaries: Bank subsidiary 230 — Non-bank subsidiaries 13,892 129,779 Accrued compensation and benefits 346,015 287,495 Senior notes payable 1,680,587 1,137,570 Total liabilities 2,122,064 1,633,789 Equity 4,914,096 4,522,031 Total liabilities and equity $ 7,036,160 $ 6,155,820 (1) Of the Parent’s total cash and cash equivalents, $350 million and $451 million at September 30, 2016 and 2015 , respectively, is held in a deposit account at RJ Bank. (2) Of the total receivable from non-bank subsidiaries, $457 million and $494 million at September 30, 2016 and 2015 , respectively, is invested in cash and cash equivalents by the subsidiary on behalf of the Parent. The following table presents the Parent’s statements of income: Year ended September 30, 2016 2015 2014 (in thousands) Revenues: Dividends from non-bank subsidiaries $ 248,020 $ 230,853 $ 253,218 Dividends from bank subsidiary 75,000 — 25,000 Interest from subsidiaries 8,999 6,886 5,779 Interest 807 843 2,050 Other 4,654 3,823 1,613 Total revenues 337,480 242,405 287,660 Interest expense (78,089 ) (76,233 ) (76,662 ) Net revenues 259,391 166,172 210,998 Non-interest expenses: Compensation and benefits 54,664 46,758 41,482 Communications and information processing 6,330 5,999 5,036 Occupancy and equipment costs 636 800 892 Business development 18,364 17,581 15,497 Other 9,792 10,365 8,252 Intercompany allocations and charges (40,424 ) (46,898 ) (38,148 ) Total non-interest expenses 49,362 34,605 33,011 Income before income tax benefit and equity in undistributed net income of subsidiaries 210,029 131,567 177,987 Income tax benefit (64,658 ) (42,688 ) (37,170 ) Income before equity in undistributed net income of subsidiaries 274,687 174,255 215,157 Equity in undistributed net income of subsidiaries 254,663 327,885 265,091 Net income $ 529,350 $ 502,140 $ 480,248 The following table presents the Parent’s statements of cash flows: Year ended September 30, 2016 2015 2014 (in thousands) Cash flows from operating activities: Net income $ 529,350 $ 502,140 $ 480,248 Adjustments to reconcile net income to net cash provided by operating activities: Gain on investments (11,538 ) (5,586 ) (10,245 ) (Gain) loss on company-owned life insurance (25,642 ) 8,960 (17,989 ) Equity in undistributed net income of subsidiaries (254,663 ) (327,885 ) (265,091 ) Other 73,798 60,634 75,725 Net change in: Intercompany receivables 19,641 (102,866 ) 45,656 Other 97,067 51,442 44,360 Intercompany payables (115,657 ) 20,338 (108,056 ) Trade and other 2,396 (49 ) 12,835 Accrued compensation and benefits 58,520 2,911 7,668 Net cash provided by operating activities 373,272 210,039 265,111 Cash flows from investing activities: (Investments in) distributions received from subsidiaries, net (637,689 ) (9,493 ) 33,973 (Advances to) repayments of advances by subsidiaries, net (394,383 ) (40,120 ) 287,154 Proceeds from sales (purchases) of investments, net 24,609 (4,601 ) 6,347 Purchase of investments in company-owned life insurance, net (49,488 ) (44,917 ) (25,581 ) Net cash (used in) provided by investing activities (1,056,951 ) (99,131 ) 301,893 Cash flows from financing activities: Proceeds from senior note issuances, net of debt issuance costs 792,221 — — Repayment of senior notes payable (250,000 ) — — Exercise of stock options and employee stock purchases 43,331 47,964 33,633 Purchase of treasury stock (162,502 ) (88,542 ) (8,427 ) Dividends on common stock (113,435 ) (103,143 ) (88,102 ) Net cash provided by (used in) financing activities 309,615 (143,721 ) (62,896 ) Net (decrease) increase in cash and cash equivalents (374,064 ) (32,813 ) 504,108 Cash and cash equivalents at beginning of year 746,042 778,855 274,747 Cash and cash equivalents at end of year $ 371,978 $ 746,042 $ 778,855 Supplemental disclosures of cash flow information: Cash paid for interest $ 74,568 $ 76,297 $ 76,661 Cash paid (received) for income taxes, net $ 27,397 $ 32,383 $ (59,552 ) Supplemental disclosures of noncash investing activity: Investments in (distributions from) subsidiaries, net $ 781 $ 507 $ (132,117 ) |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying 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. |
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 certain 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. |
Acquisitions | Acquisitions During fiscal year 2016, we completed our acquisitions of the U.S. Private Client Services unit of Deutsche Bank Wealth Management (“Alex. Brown”), MacDougall, MacDougall & MacTier, Inc. and its wholly owned subsidiaries (“3Macs”) headquartered in Canada, and Mummert & Company Corporate Finance GmbH (“Mummert”) headquartered in Europe. During fiscal year 2015, we completed our acquisitions of Cougar Global Investments Limited (“Cougar”) headquarter in Canada, and the U.S. based The Producers Choice LLC (“TPC”). |
Adoption of new accounting guidance | Adoption of new accounting guidance Effective September 30, 2016 , we adopted new accounting guidance related to the presentation of debt issuance costs in the consolidated financial statements. Under this new guidance, debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. We have retroactively applied this guidance to debt liability balances existing in the prior fiscal year, and the applicable prior period balances have been reclassified to conform to the current year presentation. See Note 17 for additional information. Effective September 30, 2016 , we adopted new accounting guidance related to the classification and disclosure of certain investments using the net asset value (“NAV”) as a practical expedient to measure the fair value of the investment. Among its provisions, this new guidance eliminates, for all investments in which fair value is measured using NAV as a practical expedient, the requirement to categorize such investments within the fair value hierarchy. We have retroactively applied this new guidance to investments held in the prior fiscal year, and applicable balances have been reclassified to conform to the current year presentation. |
Reclassifications | Reclassifications In addition to the reclassification described above, certain other prior period amounts, none of which are material, have been reclassified to conform to the current year presentation. |
Recognition of revenues | Recognition of revenues Securities commissions and 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 clients which, in certain cases, may include varying discounts. b. Fees earned by financial advisors who provide investment advisory services under various manners of affiliation with us. These fee revenues are computed as either a percentage of the assets in the client account, or a flat periodic fee charged to the client for investment advice. 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 an 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. c. Certain asset-based fees, which are recorded ratably over the period earned. d. Trailing commissions from mutual funds and variable annuities/insurance products, which are recorded ratably over the period earned. e. 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. f. 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, other than for merger and acquisition advisory arrangements, are recorded at the time a transaction is completed and the related income is reasonably determinable. Such investment banking revenues include management fees and underwriting fees, net of reimbursable expenses, earned in connection with the distribution of the underwritten securities, private placement fees, and syndication fees on the sale of low-income housing tax credit fund interests. Any securities we receive in connection with investment banking transactions are recorded at fair value. Merger and acquisition advisory fee revenues are recorded when: there is an executed engagement letter; the delivery of our services is complete; the underlying transaction price is fixed or determinable; and the collectability of the fee is reasonably assured. We distribute our proprietary equity research products to certain institutional investor clients at no charge. Investment advisory fees We provide advice, research and administrative services for clients participating in both our managed and non-discretionary asset-based 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-discretionary asset-based 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. We may earn performance fees from various funds and separate accounts we manage, when their performance exceeds certain specified rates of return. We record performance fee revenues in the period they are specifically quantifiable and are earned. Once realized, such fees are not subject to clawback or reversal. In our low-income housing tax credit fund syndication activities, we provide oversight and management of the funds during the fifteen year tax credit compliance period of the underlying funds’ investments. We recognize these fees ratably over the period the services are provided. 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. |
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, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. In addition, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. Segregated assets consist of cash and cash equivalents or qualified securities. 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. In addition, RJ Bank may maintain 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. |
Repurchase agreements and other collateralized 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 collateral 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. |
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”), certain other derivative instruments, brokered certificates of deposit, corporate loans 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 principal capital activities, 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, 2016 and 2015 . 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 level within the fair value hierarchy, specific valuation techniques, and other significant accounting policies pertaining to financial instruments presented in our Consolidated Statements of Financial Condition are described as follows: Level 1 measures: Trading instruments and trading instruments sold but not yet purchased (“Trading Securities”) are comprised primarily of the financial instruments held by our broker-dealer subsidiaries. These instruments are recorded at fair value with realized and 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. Level 2 measures: When Trading Securities 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, brokered certificates of deposit 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. A portion of our financial instruments classified on our Consolidated Statements of Financial Condition as a component of our available for sale securities are classified as Level 2 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the available for sale securities section that follows. We are a party to various derivative contracts that are classified as Level 2 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the derivatives contract section that follows. RJ Bank maintains a trading portfolio of certain corporate loans that it originates through the syndication market. These trading instruments are included in Trading Securities, are recognized as of the trade date, and are carried at fair value with the related unrealized and realized gains and losses reflected in net trading profit. These trading instruments are valued using quotes from a third party pricing service. These third party pricing service quotes are based on current market data provided by multiple dealers. The instruments are classified within Level 2 of the fair value hierarchy as the market inputs utilized by the third party pricing service are based upon observable inputs. We validate the third party pricing service quotes by comparing such prices to those provided by another external source. RJ Bank maintains certain loans held for sale, which are classified within Level 2 of the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the loans held for sale and allowances for losses section that follows. Level 3 measures: 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. A portion of our financial instruments classified on our Consolidated Statements of Financial Condition as a component of our available for sale securities are classified as Level 3 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the available for sale securities section that follows. We hold private equity investments that are classified as Level 3 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the private equity investments section that follows. 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. Included within Trading Securities are 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’s are entered into by RJ&A as a component of a hedging strategy, to hedge interest rate risk that it would otherwise be exposed to as part of a program its fixed income public finance operations offers to certain state and local housing finance agencies (“HFA”). Under this program, RJ&A enters into forward commitments to purchase Government National Mortgage Association (“GNMA”) or Federal National Home Mortgage Association (“FNMA”) MBS. The MBS securities are issued on behalf of various HFA clients and consist of the mortgages originated through their lending programs. RJ&A’s forward GNMA or FNMA MBS purchase commitments arise 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 or FNMA 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. 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.” These TBA securities are accounted for at fair value and are classified within Level 1 of the fair value hierarchy. The TBA securities may aggregate to either a net asset or net liability at any reporting date, depending upon market conditions. The offsetting purchase commitment is accounted for at fair value and is included in either other assets, or other liabilities, depending upon whether the TBA securities aggregate to a net asset or net liability. The fair value of the purchase commitment is classified within 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”). These securities are generally classified at the date of purchase as available for sale securities. The RJ Bank AFS Securities are used as part of RJ Bank’s interest rate risk and liquidity management strategies, and may be sold in response to changes in interest rates, changes in prepayment risks, or other factors. 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 average life of the security. 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 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 (loss) income and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”) on our Consolidated Statements of Financial Condition. 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 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 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 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 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 more representative of fair value under the current market conditions. Securities measured using these valuation techniques are generally classified within Level 2 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 Trading: We enter into interest rate swaps or futures contracts either as part of our fixed income business to facilitate client 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 including interest, are recorded in net trading profit within the Consolidated Statements of Income and Comprehensive 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. Matched Book: We also facilitate matched book derivative transactions through Raymond James Financial Products, LLC (“RJFP”) a non-broker-dealer subsidiary. RJFP enters into derivative transactions (primarily interest rate swaps) with clients. For every derivative transaction RJFP enters into with a client, it enters into an offsetting transaction with terms that mirror the client 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 client and the third party financial institution. RJFP 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. RJFP recognizes revenue on derivative transactions on the transaction date, computed as the present value of the expected cash flows RJFP 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. Hedges: 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. The cash flows associated with certain assets held by RJ Bank provide interest income at fixed interest rates. Therefore, the value of these assets, absent any risk mitigation, is subject to fluctuation based upon changes in market rates of interest over time. Beginning in February 2015, we entered into certain interest rate swap contracts (the “RJ Bank Interest Hedges”) which swap variable interest payments on debt for fixed interest payments. Through the RJ Bank Interest Hedges, RJ Bank is able to mitigate a portion of the market risk associated with certain fixed rate interest earning assets held by RJ Bank. The RJ Bank Interest Hedges are recorded at fair value on the Consolidated Statements of Financial Condition and are designated as cash flow hedges. The effective portion of the related gain or loss is recorded, net of tax, in shareholders’ equity as part of the cash flow hedge component of AOCI and subsequently reclassified to earnings when the hedged transaction affects earnings, specifically upon the incurrence of interest expense on certain borrowings. The ineffective portions of the related gain and loss are immediately recognized into earnings in the Consolidated Statements of Income and Comprehensive Income. Hedge effectiveness is assessed at inception and each reporting period utilizing regression analysis and performed using the hypothetical derivative method. However, as the key terms of the hedging instrument and hedged transaction match at inception, management expects there to be no ineffectiveness impacting earnings from this hedge while it is outstanding. As a result of these derivative transactions being executed through a clearing exchange, we are required to provide the exchange with either a cash deposit or qualified securities. Such deposit balances are included as a component of deposits with clearing organizations on our Consolidated Statements of Financial Condition. The fair value of RJ Bank Interest Hedges 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 a third party to corroborate the output of our internal pricing models. Other: As part of our acquisition of Alex. Brown, RJ&A assumed certain Deutsche Bank restricted stock unit (“DBRSU”) awards, including the associated plan terms and conditions. Refer to the “share-based compensation” section of this footnote for a description of the assumed obligation. The DBRSU awards contain performance conditions based on Deutsche Bank and subsidiaries attaining certain financial results and will ultimately be settled in Deutsche Bank AG (“DB”) common shares, as traded on the New York Stock Exchange (“NYSE”), provided the performance metrics are achieved. The DBRSU obligation results in a derivative. The DBRSU derivative liability is measured by applying the reporting period-end DB common share price to the DBRSU awards outstanding as of the end of such period. This computation is a Level 2 measure under the fair value hierarchy and the liability is included in accrued compensation, commissions, and benefits in our Consolidated Statements of Financial Condition. Private equity investments Private equity investments consist of direct and third party private equity funds, merchant banking investments, employee investment funds, and various Company-sponsored private equity funds. Our investments in these private funds are primarily closed-end funds in which the Company’s investments are generally not eligible for redemption. Distributions will be received from these funds as the underlying assets are liquidated or distributed. We estimate that the underlying assets of these funds will be liquidated over the remaining life of these funds (ranging from one to nine years ). These investments are measured at fair value with any changes recognized in other revenue on our Consolidated Statements of Income and Comprehensive Income. The fair value of private equity investments are determined utilizing either NAV as a practical expedient, or Level 3 valuation techniques. We utilize NAV or its equivalent as a practical expedient to determine the fair value of our private equity investments when: the fund does not have a readily determinable fair value; the NAV of the fund is calculated in a manner consistent with the measurement principles of investment-company accounting, including measurement of the underlying investments at fair value; and it is not probable that we will sell the investment at an amount other than NAV. The NAV is calculated based on our proportionate share of the net assets of the fund as provided by the fund manager. The portion of our private equity investment portfolio that is not valued at NAV is 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 valued using these valuation techniques are classified within Level 3 of the fair value hierarchy. The valuation of such investments requires significant 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. Other investments Other investments consist primarily of marketable securities we hold th |
Fair value measurement | 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”), certain other derivative instruments, brokered certificates of deposit, corporate loans 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 principal capital activities, 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, 2016 and 2015 . 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. |
Trading instruments and trading instruments sold but not yet purchased | Level 1 measures: Trading instruments and trading instruments sold but not yet purchased (“Trading Securities”) are comprised primarily of the financial instruments held by our broker-dealer subsidiaries. These instruments are recorded at fair value with realized and 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. Level 2 measures: When Trading Securities 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, brokered certificates of deposit 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. A portion of our financial instruments classified on our Consolidated Statements of Financial Condition as a component of our available for sale securities are classified as Level 2 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the available for sale securities section that follows. We are a party to various derivative contracts that are classified as Level 2 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the derivatives contract section that follows. RJ Bank maintains a trading portfolio of certain corporate loans that it originates through the syndication market. These trading instruments are included in Trading Securities, are recognized as of the trade date, and are carried at fair value with the related unrealized and realized gains and losses reflected in net trading profit. These trading instruments are valued using quotes from a third party pricing service. These third party pricing service quotes are based on current market data provided by multiple dealers. The instruments are classified within Level 2 of the fair value hierarchy as the market inputs utilized by the third party pricing service are based upon observable inputs. We validate the third party pricing service quotes by comparing such prices to those provided by another external source. RJ Bank maintains certain loans held for sale, which are classified within Level 2 of the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the loans held for sale and allowances for losses section that follows. Level 3 measures: 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. A portion of our financial instruments classified on our Consolidated Statements of Financial Condition as a component of our available for sale securities are classified as Level 3 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the available for sale securities section that follows. We hold private equity investments that are classified as Level 3 within the fair value hierarchy. The valuation methodologies of such financial instruments are discussed in the private equity investments section that follows. 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. Included within Trading Securities are 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’s are entered into by RJ&A as a component of a hedging strategy, to hedge interest rate risk that it would otherwise be exposed to as part of a program its fixed income public finance operations offers to certain state and local housing finance agencies (“HFA”). Under this program, RJ&A enters into forward commitments to purchase Government National Mortgage Association (“GNMA”) or Federal National Home Mortgage Association (“FNMA”) MBS. The MBS securities are issued on behalf of various HFA clients and consist of the mortgages originated through their lending programs. RJ&A’s forward GNMA or FNMA MBS purchase commitments arise 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 or FNMA 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. 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.” These TBA securities are accounted for at fair value and are classified within Level 1 of the fair value hierarchy. The TBA securities may aggregate to either a net asset or net liability at any reporting date, depending upon market conditions. The offsetting purchase commitment is accounted for at fair value and is included in either other assets, or other liabilities, depending upon whether the TBA securities aggregate to a net asset or net liability. The fair value of the purchase commitment is classified within 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”). These securities are generally classified at the date of purchase as available for sale securities. The RJ Bank AFS Securities are used as part of RJ Bank’s interest rate risk and liquidity management strategies, and may be sold in response to changes in interest rates, changes in prepayment risks, or other factors. 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 average life of the security. 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 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 (loss) income and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”) on our Consolidated Statements of Financial Condition. 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 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 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 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 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 more representative of fair value under the current market conditions. Securities measured using these valuation techniques are generally classified within Level 2 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 Trading: We enter into interest rate swaps or futures contracts either as part of our fixed income business to facilitate client 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 including interest, are recorded in net trading profit within the Consolidated Statements of Income and Comprehensive 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. Matched Book: We also facilitate matched book derivative transactions through Raymond James Financial Products, LLC (“RJFP”) a non-broker-dealer subsidiary. RJFP enters into derivative transactions (primarily interest rate swaps) with clients. For every derivative transaction RJFP enters into with a client, it enters into an offsetting transaction with terms that mirror the client 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 client and the third party financial institution. RJFP 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. RJFP recognizes revenue on derivative transactions on the transaction date, computed as the present value of the expected cash flows RJFP 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. Hedges: 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. The cash flows associated with certain assets held by RJ Bank provide interest income at fixed interest rates. Therefore, the value of these assets, absent any risk mitigation, is subject to fluctuation based upon changes in market rates of interest over time. Beginning in February 2015, we entered into certain interest rate swap contracts (the “RJ Bank Interest Hedges”) which swap variable interest payments on debt for fixed interest payments. Through the RJ Bank Interest Hedges, RJ Bank is able to mitigate a portion of the market risk associated with certain fixed rate interest earning assets held by RJ Bank. The RJ Bank Interest Hedges are recorded at fair value on the Consolidated Statements of Financial Condition and are designated as cash flow hedges. The effective portion of the related gain or loss is recorded, net of tax, in shareholders’ equity as part of the cash flow hedge component of AOCI and subsequently reclassified to earnings when the hedged transaction affects earnings, specifically upon the incurrence of interest expense on certain borrowings. The ineffective portions of the related gain and loss are immediately recognized into earnings in the Consolidated Statements of Income and Comprehensive Income. Hedge effectiveness is assessed at inception and each reporting period utilizing regression analysis and performed using the hypothetical derivative method. However, as the key terms of the hedging instrument and hedged transaction match at inception, management expects there to be no ineffectiveness impacting earnings from this hedge while it is outstanding. As a result of these derivative transactions being executed through a clearing exchange, we are required to provide the exchange with either a cash deposit or qualified securities. Such deposit balances are included as a component of deposits with clearing organizations on our Consolidated Statements of Financial Condition. The fair value of RJ Bank Interest Hedges 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 a third party to corroborate the output of our internal pricing models. Other: As part of our acquisition of Alex. Brown, RJ&A assumed certain Deutsche Bank restricted stock unit (“DBRSU”) awards, including the associated plan terms and conditions. Refer to the “share-based compensation” section of this footnote for a description of the assumed obligation. The DBRSU awards contain performance conditions based on Deutsche Bank and subsidiaries attaining certain financial results and will ultimately be settled in Deutsche Bank AG (“DB”) common shares, as traded on the New York Stock Exchange (“NYSE”), provided the performance metrics are achieved. The DBRSU obligation results in a derivative. The DBRSU derivative liability is measured by applying the reporting period-end DB common share price to the DBRSU awards outstanding as of the end of such period. This computation is a Level 2 measure under the fair value hierarchy and the liability is included in accrued compensation, commissions, and benefits in our Consolidated Statements of Financial Condition. |
Private equity investments | Private equity investments Private equity investments consist of direct and third party private equity funds, merchant banking investments, employee investment funds, and various Company-sponsored private equity funds. Our investments in these private funds are primarily closed-end funds in which the Company’s investments are generally not eligible for redemption. Distributions will be received from these funds as the underlying assets are liquidated or distributed. We estimate that the underlying assets of these funds will be liquidated over the remaining life of these funds (ranging from one to nine years ). These investments are measured at fair value with any changes recognized in other revenue on our Consolidated Statements of Income and Comprehensive Income. The fair value of private equity investments are determined utilizing either NAV as a practical expedient, or Level 3 valuation techniques. We utilize NAV or its equivalent as a practical expedient to determine the fair value of our private equity investments when: the fund does not have a readily determinable fair value; the NAV of the fund is calculated in a manner consistent with the measurement principles of investment-company accounting, including measurement of the underlying investments at fair value; and it is not probable that we will sell the investment at an amount other than NAV. The NAV is calculated based on our proportionate share of the net assets of the fund as provided by the fund manager. The portion of our private equity investment portfolio that is not valued at NAV is 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 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 certain of our deferred compensation programs, term deposits with Canadian financial institutions, 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). The non-qualified deferred compensation plans or arrangements are for the benefit of certain employees, and provide a return to the participating employees based upon the performance of various referenced investments. The balances associated with these plans are invested in certain marketable securities that we hold 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 accrued compensation, commissions and benefits 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. 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. |
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 receivable held by one of our broker-dealer subsidiaries 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 (see Note 19 for additional information regarding this collateral). We offer loans to financial advisors and certain key revenue producers, primarily for recruiting, transitional cost assistance, 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. 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 primarily considers our historical collection experience as well as other factors including: any amounts due at termination, the reasons for the terminated relationship, and the former financial advisor’s overall financial position. 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. 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. We present the outstanding balance of loans to financial advisors on our Consolidated Statements of Financial Condition, net of the allowance for doubtful accounts. |
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 (see Note 19 for additional information regarding this collateral). |
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, tax-exempt loans, as well as loans which are fully collateralized by the borrower’s marketable securities. The 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. RJ Bank segregates its loan portfolio into six portfolio segments, C&I, commercial real estate (“CRE”), CRE construction, tax-exempt, residential mortgage, and securities based loans (“SBL”). 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 interest rate terms, as well as SBA loans purchased and intended for sale in the secondary market but not yet aggregated for securitization into pools, are each 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. 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 sells these pools in the secondary market. Individual loans may be sold prior to securitization. The determination of the fair value of the SBA loans depends 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 the 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 SBA 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 profit. Sales of the securitizations are accounted for as of settlement date, which is the date RJ Bank has surrendered control over the transferred assets. RJ Bank does not retain any interest in the securitizations once they are sold. 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. Corporate loans, which include C&I, CRE, CRE construction and tax-exempt, 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. Gains and losses on sales of residential mortgage loans held for sale, SBA loans that are not part of a securitized pool, and corporate loans transferred from the held for investment portfolio, 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. 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. The potential credit loss associated with these off-balance sheet loan commitments is accrued and reflected in other liabilities within the Consolidated Statements of Financial Condition. Refer to the allowance for loan losses and reserve for unfunded lending commitments section that follows for a discussion of the reserve calculation methodology. RJ Bank recognizes the revenue associated with corporate syndicated standby letters of credit, which is generally received quarterly, on a cash basis, the effect of which does not differ materially from recognizing in the period the fee is earned. Unused corporate line fees are accounted for on an accrual basis. 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 SBL and residential (first mortgage and home equity) loans and the cost recovery method for corporate 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. 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. The concessions granted in restructurings of corporate loans are similar to those for residential mortgage loans, and may also include the reduction of the guarantor’s liability. 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. Corporate 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 based on ongoing evaluations of the portfolio, the related risk characteristics, and the overall economic and environmental conditions affecting the 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 reflect 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. Estimates that are particularly susceptible to change that may have an impact on the amount of the allowance include: • the selection of proxy data used to calculate loss factors; • the evaluation of loss emergence and historical loss experience periods; • our evaluation of the risk profile of loan portfolio segments, including internal risk ratings; • the value of underlying collateral, which impacts loss severity and certain cash flow assumptions; • our selection and evaluation of qualitative factors, which reflect the imprecision that is inherent in the estimation of probable loan losses. The allowance for loan loss is comprised of three components: allowances calculated based on formulas for homogeneous classes of loans collectively evaluated for impairment, specific allowances assigned to certain classified loans individually evaluated for impairment, and allowances resulting from our analysis of certain qualitative factors. The 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, tax-exempt, residential first mortgage, residential home equity, and SBL. An annual analysis of the loss emergence period estimate, which is the average length of time between the event that triggers a loss and the confirmation and/or charge-off of that loss is performed for all loan classes. This analysis is utilized in establishing the allowance for each of the classes of loans through the application of an adjustment to the calculated allowance percentage for the respective loan grade. The loans within the corporate loan classes are assigned to an internal loan grade based upon the respective loan’s credit characteristics. The loans within the residential first mortgage, residential home equity, and SBL 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 estimated incurred loss associated with that grade. The allowance for loan losses for all non-impaired loans is then calculated based on the allowance percentage assigned to the respective loan’s class and grade factoring in the respective loss emergence period. The allowance for loan losses for all impaired loans and those nonaccrual residential mortgage loans that have been evaluated for a charge-off are based on an individual evaluation of impairment as previously described in the “Impaired loans” section. The quantitative factors taken into consideration when assigning the loan grades and allowance percentages to the loans within the corporate loan classes include: estimates of borrower default probabilities and collateral type; past loss history, Shared National Credit (“SNC”) reviews and examination results from bank regulators. Loan grades for individual C&I and tax-exempt loans are derived from analyzing two aspects of the risk profile 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 historical long-term industry loss rates (proxy data) as RJ Bank has limited loss history, are considered in combination with certain adjustments for the loss emergence period to derive the final C&I and tax-exempt loan grades and allowance percentages. The allowance for loans within the CRE and CRE construction loan portfolios is based on either a probability of default and loss given default methodology or analyses of peer group and industry loss history in combination with certain adjustments for loss emergence period. The quantitative loss rates for corporate loans are supplemented by considering qualitative factors that may cause estimated losses to differ from quantitatively calculated amounts. These qualitative factors are intended to address developing external and environmental trends, and include, but are not limited to: trends in delinquencies, loan growth; loan terms; changes in geographic distribution; changes in the value of the underlying collateral for collateral-dependent loans; lending policies; loan review process; experience, ability and depth of lending management and other relevant staff; local, regional, national and international economic conditions; competition; legal and regulatory requirements; and concentrations of credit risk. Historical loan loss rates, a quantitative factor, are utilized when assigning the allowance percentages for residential first mortgage loans and residential home equity loans. These estimated loss rates are based on RJ Bank’s historical loss data over a period of time. RJ Bank currently utilizes a look back period for residential first mortgage and home equity loans reflecting the current housing cycle that includes the last downturn. The SBL portfolio is not yet seasoned enough to exhibit a loss trend; therefore, the allowance is based primarily on peer group allowance information and the qualitative factors noted below. For residential first mortgage loan, residential home equity loan and SBL classes, the qualitative factors considered to supplement the quantitative analysis include, but are not limited to, 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, loan policy exceptions, updated loan-to-value (“LTV”) ratios, and the factors noted above that are utilized for corporate loans. 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 primarily 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 previously discussed. RJ Bank reserves for 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 previously described. Loan charge-off policies Corporate 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 and tax-exempt 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 semi-annually by the agent bank’s regulator, a process in which the other participating banks have no involvement. Once the SNC 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 semi-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. Corporate loans are subject to RJ Bank’s internal review procedures and regulatory review by the OCC as part of RJ Bank’s regulatory examination. Every residential mortgage 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, current valuation estimate 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 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 loan losses 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 Federal Home Loan Bank of Atlanta (“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 from these investments 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 Note 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. |
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 of our policies regarding the evaluation of VIEs to determine if consolidation is required that follows). 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 fund VIEs which require consolidation. |
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 10 years for software, three 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. Depreciation expense associated with property, equipment and leasehold improvements is included in occupancy and equipment costs in the Consolidated Statements of Income and Comprehensive Income. Amortization expense associated with computer software is included in communications and information processing expense in the Consolidated Statements of Income and Comprehensive Income. 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 we acquire such as customer relationships, trade names, developed technology, intellectual property, and non-compete agreements, are amortized over their estimated useful lives on a straight-line method, and 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. Amortization expense associated with such intangible assets is included in other expense in the Consolidated Statements of Income and Comprehensive Income. 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 other expense in the 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). |
Contingent liabilities | Contingent 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 and regulatory proceedings in trade and other payables on our Consolidated Statements of Financial Condition. 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 or significant regulatory matter is reviewed with counsel in each accounting period and the liability balance is adjusted as deemed appropriate by management. 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 matters or regulatory proceedings may be substantially higher or lower than the recorded liability amounts for such 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 24 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. 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 certain of 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. 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. As part of our acquisition of Alex. Brown, RJ&A assumed certain DBRSU awards, including the associated plan terms and conditions. The DBRSU awards contain performance conditions based on Deutsche Bank and subsidiaries attaining certain financial results and will ultimately be settled in DB common shares, as traded on the NYSE, provided the performance metrics are achieved. The portion of these awards that relate to past services performed by the award recipients before the acquisition of Alex. Brown represents consideration transferred in the business combination. The portion of these awards which relate to compensation for future services are a prepaid compensation asset which has a corresponding derivative liability. The prepaid compensation asset is amortized over the remaining requisite service period of the participant using the straight-line method while the derivative liability is recorded at fair value at the end of each reporting period until it is settled. Refer to the “derivative contracts” sub-section of the “financial instruments owned, financial instruments sold but not yet purchased and fair value” section of this footnote for information regarding the determination of the fair value of this derivative. The amortization of the prepaid asset and the change in fair value of the derivative liability is recorded within compensation expense in our Consolidated Statements of Income and Comprehensive Income. See Note 24 for additional information on this share-based compensation plan. |
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 company-owned life insurance and other 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. |
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 on our 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 associated with certain acquisitions are separately reported in the Consolidated Statement of Income and Comprehensive Income and include certain incremental expenses arising from our acquisitions. 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 either at an average exchange rate for the period, or in the case of the foreign subsidiary of RJ Bank, at the exchange rate in effect on the date which transactions occur. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars are included in other comprehensive (loss) 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. |
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 and restricted stock units by application of the treasury stock method. |
Evaluation of VIEs to determine whether consolidation is required | 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: 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. Other than for the Managed Funds whose process is discussed separately, 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. 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 involvement 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, resulting in a conclusion of shared power with the limited partner. Therefore RJTCF, as managing member or general partner of such funds, is not the one party with power over such activities and resultantly 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 member or limited partner, 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. Direct investments in LIHTC project partnerships RJ Bank is the investor member of a LIHTC fund in which a subsidiary of RJTCF is the managing member. This LIHTC fund is an investor member in certain LIHTC project partnerships. We evaluate the appropriate accounting for these investments after aggregating RJ Bank and RJTCF’s interests and roles in the LIHTC fund. Since unrelated third parties are the managing member of the investee project partnerships, we have determined that consolidation of these project partnerships is not required; we account for these investments under the equity method. The carrying value of these project partnerships is included in other assets on our Consolidated Statements of Financial Condition (see Note 10 for additional information). 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. 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. 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. New market tax credit funds An entity which was at one time an affiliate of Morgan Keegan (as hereinafter defined in Note 21 ) 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 The Managed Funds are VIEs in which one of our subsidiaries serves as the general partner. The Managed Funds satisfy the conditions for deferral of the determination of who is the primary beneficiary that is performed based upon the assessment of who has the power to direct the activities of the entity that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity that could potentially be significant to the entity. The deferral criteria which the Managed Funds meet are: 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. For the Managed Funds, our primary beneficiary assessment applies prior accounting guidance which assesses who will absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns, or both. Based upon the outcome of our assessments, we have determined that we are not required to consolidate the Managed Funds. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition Related Expenses | During the year ended September 30, 2016 we incurred the following acquisition-related expenses: Year ended September 30, 2016 (in thousands) Information systems integration costs $ 21,752 Legal and regulatory 8,334 Pre-AB Closing Date unrealized loss in the fair value of DB shares purchased to satisfy the DBRSU liability (1) 4,837 Severance 866 Travel and all other 4,917 Total acquisition-related expenses $ 40,706 (1) On various dates between the signing of the asset purchase agreement and the AB Closing Date, we purchased DB shares in open market transactions to serve as an economic hedge against a portion of the DBRSU liability to be assumed on the closing date. We hold these equity securities in other investments on our Consolidated Statements of Financial Condition and they are recorded at fair value. The unrealized loss we incurred on these shares prior to the AB Closing Date is included herein as a component of acquisition-related expenses as the sole reason we acquired such asset was to use in the settlement of a portion of the DBRSU liability, once assumed. For periods subsequent to the AB Closing Date, any unrealized gains/losses arising from the change in the fair value of such assets is reflected as a component of the compensation expense associated with the DBRSUs. See Note 24 for additional information about the DBRSU’s. |
CASH AND CASH EQUIVALENTS, AS39
CASH AND CASH EQUIVALENTS, ASSETS SEGREGATED PURSUANT TO REGULATIONS AND DEPOSITS WITH CLEARING ORGANIZATIONS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 (in thousands) Cash and cash equivalents: Cash in banks $ 1,649,593 $ 2,597,568 Money market fund investments 859 3,438 Total cash and cash equivalents (1) $ 1,650,452 $ 2,601,006 Assets segregated pursuant to federal regulations and other segregated assets (2) $ 4,889,584 $ 2,905,324 Deposits with clearing organizations Cash and cash equivalents $ 215,856 $ 177,787 Government and agency obligations 29,508 29,701 Total deposits with clearing organizations $ 245,364 $ 207,488 (1) The total amounts presented include cash and cash equivalents of $810 million and $1.216 billion as of September 30, 2016 and 2015 , respectively, which are either held directly by RJF in depository accounts at third party financial institutions, held in a depository account at RJ Bank (computed as the lesser of RJ Bank’s cash balance or the amount of RJF’s depository account balance), or are otherwise invested by one of our subsidiaries on behalf of RJF, all of which are available without restrictions. (2) Consists of cash maintained in accordance with Rule 15c3-3 under the Securities Exchange Act of 1934. RJ&A, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in segregated reserve accounts for the exclusive benefit of its’ clients. Additionally, RJ Ltd. is required to hold client Registered Retirement Savings Plan funds in trust. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 Quoted prices (1) Significant other observable inputs (Level 2) (1) Significant unobservable inputs (Level 3) Netting adjustments (2) Balance as of (in thousands) Assets at fair value on a recurring basis: Trading instruments: Municipal and provincial obligations $ 480 $ 273,683 $ — $ — $ 274,163 Corporate obligations 10,000 122,885 — — 132,885 Government and agency obligations 6,412 43,186 — — 49,598 Agency MBS and CMOs 413 164,250 — — 164,663 Non-agency CMOs and ABS — 34,421 7 — 34,428 Total debt securities 17,305 638,425 7 — 655,737 Derivative contracts — 163,242 — (107,539 ) 55,703 Equity securities 14,529 1,500 — — 16,029 Brokered certificates of deposit — 35,206 — — 35,206 Other 555 3 3,572 — 4,130 Total trading instruments 32,389 838,376 3,579 (107,539 ) 766,805 Available for sale securities: Agency MBS and CMOs — 682,297 — — 682,297 Non-agency CMOs — 50,519 — — 50,519 Other securities 1,417 — — — 1,417 ARS: Municipals — — 25,147 — 25,147 Preferred securities — — 100,018 — 100,018 Total available for sale securities 1,417 732,816 125,165 — 859,398 Private equity investments not measured at NAV (3) — — 83,165 (4) — 83,165 Other investments (5) 296,146 257 441 — 296,844 Derivative instruments associated with offsetting matched book positions — 422,196 — — 422,196 Deposits with clearing organizations: Government and agency obligations 29,508 — — — 29,508 Other assets: Derivative contracts (6) — 2,016 — — 2,016 Other assets — — 2,448 (7) — 2,448 Total other assets — 2,016 2,448 — 4,464 Total assets at fair value on a recurring basis $ 359,460 $ 1,995,661 $ 214,798 $ (107,539 ) $ 2,462,380 Assets at fair value on a nonrecurring basis: Bank loans, net: Impaired loans $ — $ 23,146 $ 47,982 $ — $ 71,128 Loans held for sale (8) — 18,177 — — 18,177 Total bank loans, net — 41,323 47,982 — 89,305 OREO (9) — 679 — — 679 Total assets at fair value on a nonrecurring basis $ — $ 42,002 $ 47,982 $ — $ 89,984 (continued on next page) September 30, 2016 Quoted prices in active markets for identical assets (Level 1) (1) Significant other observable inputs (Level 2) (1) Significant unobservable inputs (Level 3) Netting adjustments (2) Balance as of (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 $ 1,161 $ — $ — $ — $ 1,161 Corporate obligations 1,283 29,791 — — 31,074 Government obligations 266,682 — — — 266,682 Agency MBS and CMOs 2,804 — — — 2,804 Total debt securities 271,930 29,791 — — 301,721 Derivative contracts — 151,694 — (142,859 ) 8,835 Equity securities 18,382 — — — 18,382 Total trading instruments sold but not yet purchased 290,312 181,485 — (142,859 ) 328,938 Derivative instruments associated with offsetting matched book positions — 422,196 — — 422,196 Trade and other payables: Derivative contracts (6) — 26,671 — — 26,671 Other liabilities — — 67 — 67 Total trade and other payables — 26,671 67 — 26,738 Accrued compensation, commissions and benefits: Derivative contracts (10) — 17,769 — — 17,769 Total liabilities at fair value on a recurring basis $ 290,312 $ 648,121 $ 67 $ (142,859 ) $ 795,641 The text of the footnotes to the table on the previous page are as follows: (1) We had $3 million in transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2016 . These transfers were a result of a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had $1 million in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2016 . These transfers were a result of an increase in the 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) For derivative transactions not cleared through an exchange, and where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists (see Note 19 for additional information regarding offsetting financial instruments). Deposits associated with derivative transactions cleared through an exchange are included in deposits with clearing organizations on our Consolidated Statements of Financial Condition. (3) Effective September 30, 2016 we adopted new accounting guidance related to the classification and disclosure of certain investments using the NAV as a practical expedient to measure the fair value of the investment. The amounts presented above do not include our investments measured at NAV, see Notes 1 , 2 , and the “investments in private equity measured at net asset value per share” section within this footnote, for additional information. (4) The portion of these investments we do not own is approximately $26 million as of September 30, 2016 and are included as a component of noncontrolling interest in our Consolidated Statements of Financial Condition. The weighted average portion we own is approximately $57 million or 68% of the total private equity investments of $83 million included in our Consolidated Statements of Financial Condition. (5) Other investments include $77 million of financial instruments that are related to obligations to perform under certain deferred compensation plans (see Notes 2 and 24 for further information regarding these plans), and DB shares with a fair value of $12 million as of September 30, 2016 which we hold as an economic hedge against the DBRSU obligation (see Notes 2 , 18 , and 24 for additional information). (6) Consists of derivatives arising from RJ Bank’s business operations, see Note 18 for additional information. (7) Includes the fair value of forward commitments to purchase GNMA or FNMA MBS arising from our fixed income public finance operations (see Notes 2 and 21 for additional information regarding the GNMA or FNMA MBS commitments). (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. (10) The balance reflects the DBRSUs which arose from our acquisition of Alex. Brown, see the discussion of the circumstances giving rise to this derivative in Note 3 . September 30, 2015 Quoted prices in active markets for identical assets (Level 1) (1) Significant other observable inputs (Level 2) (1) Significant unobservable inputs (Level 3) Netting adjustments (2) Balance as of (in thousands) Assets at fair value on a recurring basis: Trading instruments: Municipal and provincial obligations $ 17,318 $ 188,745 $ — $ — $ 206,063 Corporate obligations 2,254 92,907 156 — 95,317 Government and agency obligations 7,781 108,166 — — 115,947 Agency MBS and CMOs 253 117,317 — — 117,570 Non-agency CMOs and ABS — 46,931 9 — 46,940 Total debt securities 27,606 554,066 165 — 581,837 Derivative contracts — 132,707 — (90,621 ) 42,086 Equity securities 24,859 3,485 — — 28,344 Brokered certificates of deposit — 30,803 — — 30,803 Other 679 4,816 1,986 — 7,481 Total trading instruments 53,144 725,877 2,151 (90,621 ) 690,551 Available for sale securities: Agency MBS and CMOs — 302,195 — — 302,195 Non-agency CMOs — 71,369 — — 71,369 Other securities 1,402 — — — 1,402 ARS: Municipals — — 28,015 — 28,015 Preferred securities — — 110,749 — 110,749 Total available for sale securities 1,402 373,564 138,764 — 513,730 Private equity investments not measured at NAV (3) — — 77,435 (4) — 77,435 Other investments (5) 230,839 17,347 565 — 248,751 Derivative instruments associated with offsetting matched book positions — 389,457 — — 389,457 Deposits with clearing organizations: Government and agency obligations 29,701 — — — 29,701 Other assets: Derivative contracts (6) — 917 — — 917 Other assets — — 4,975 (7) — 4,975 Total other assets — 917 4,975 — 5,892 Total assets at fair value on a recurring basis $ 315,086 $ 1,507,162 $ 223,890 $ (90,621 ) $ 1,955,517 Assets at fair value on a nonrecurring basis: Bank loans, net Impaired loans $ — $ 28,082 $ 37,830 $ — $ 65,912 Loans held for sale (8) — 14,334 — — 14,334 Total bank loans, net — 42,416 37,830 — 80,246 OREO (9) — 671 — — 671 Total assets at fair value on a nonrecurring basis $ — $ 43,087 $ 37,830 $ — $ 80,917 (continued on next page) September 30, 2015 Quoted prices in active markets for identical assets (Level 1) (1) Significant other observable inputs (Level 2) (1) Significant unobservable inputs (Level 3) Netting adjustments (2) Balance as of (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 $ 17,966 $ 347 $ — $ — $ 18,313 Corporate obligations 167 33,017 — — 33,184 Government obligations 205,658 — — — 205,658 Agency MBS and CMOs 5,007 — — — 5,007 Total debt securities 228,798 33,364 — — 262,162 Derivative contracts — 109,120 — (88,881 ) 20,239 Equity securities 3,098 — — — 3,098 Other securities — 2,494 — — 2,494 Total trading instruments sold but not yet purchased 231,896 144,978 — (88,881 ) 287,993 Derivative instruments associated with offsetting matched book positions — 389,457 — — 389,457 Trade and other payables: Derivative contracts (6) — 7,545 — — 7,545 Other liabilities — — 58 — 58 Total trade and other payables — 7,545 58 — 7,603 Total liabilities at fair value on a recurring basis $ 231,896 $ 541,980 $ 58 $ (88,881 ) $ 685,053 (1) We had $1 million in transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2015 . These transfers were a result of a decrease in the availability and reliability of the observable inputs utilized in the respective instruments’ fair value measurement. We had $2 million in transfers of financial instruments from Level 2 to Level 1 during the year ended September 30, 2015 . These transfers were a result of an increase in the 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) For derivative transactions not cleared through an exchange, and where permitted, we have elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists (see Note 19 for additional information regarding offsetting financial instruments). Deposits associated with derivative transactions cleared through an exchange are included in deposits with clearing organizations on our Consolidated Statements of Financial Condition. (3) Effective September 30, 2016 we adopted new accounting guidance related to the classification and disclosure of certain investments using the NAV as a practical expedient to measure the fair value of the investment. These prior year amounts reflect the effect of reclassifications to conform the prior year to current year presentation. Accordingly, the amounts presented above do not include our investments measured at NAV, see Notes 1 , 2 , and the “investments in private equity measured at net asset value per share” section within this footnote, for additional information. (4) The portion of these investments we do not own is approximately $19 million as of September 30, 2015 and are included as a component of noncontrolling interest in our Consolidated Statements of Financial Condition. The weighted average portion we own is approximately $58 million or 75% of the total private equity investments of $77 million included in our Consolidated Statements of Financial Condition. (5) Other investments include $106 million of financial instruments that are related to obligations to perform under certain deferred compensation plans (see Notes 2 and 24 for further information regarding these plans). (6) Consists of derivatives arising from RJ Bank’s business operations, see Note 18 for additional information. (7) Includes the fair value of forward commitments to purchase GNMA or FNMA MBS arising from our fixed income public finance operations (see Notes 2 and 21 for additional information). (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. |
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, 2016 Level 3 assets at fair value (in thousands) Financial assets Financial liabilities Trading instruments Available for sale securities Private equity, other investments and other assets Payables- trade and other Corporate Obligations Non- agency CMOs & ABS Other ARS – ARS - Private equity investments not measured at NAV Other investments Other assets Other liabilities Fair value September 30, 2015 $ 156 $ 9 $ 1,986 $ 28,015 $ 110,749 $ 77,435 $ 565 $ 4,975 $ (58 ) Total gains (losses) for the year: Included in earnings (137 ) — (521 ) 133 136 11,517 (1) 9 (2,527 ) (9 ) Included in other comprehensive income — — — (1,393 ) (9,656 ) — — — — Purchases and contributions 75 — 61,887 — — 11,271 8 — — Sales (94 ) — (59,780 ) (1,583 ) (1,211 ) (18 ) — — — Redemptions by issuer — — — (25 ) — — — — — Distributions — (2 ) — — — (17,040 ) (141 ) — — Transfers: (2) Into Level 3 — — — — — — — — — Out of Level 3 — — — — — — — — — Fair value September 30, 2016 $ — $ 7 $ 3,572 $ 25,147 $ 100,018 $ 83,165 $ 441 $ 2,448 $ (67 ) 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 $ (225 ) $ (1,348 ) $ (9,574 ) $ 11,517 $ 2 $ (2,527 ) $ — (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 $3 million which is included in net income attributable to RJF (after noncontrolling interests). The noncontrolling interests’ share of the net valuation adjustments was a gain of approximately $9 million . (2) 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, 2015 Financial assets Financial liabilities Trading instruments Private equity, other investments, other receivables and other assets Payables-trade and other Corporate Obligations Non- agency CMOs & ABS Equity securities Other ARS – ARS - Private equity investments not measured at NAV (1) Other investments Other assets Other liabilities Fair value September 30, 2014 $ — $ 11 $ 44 $ 2,309 $ 86,696 $ 114,039 $ 75,980 $ 1,731 $ 787 $ (58 ) Total gains (losses) for the year: Included in earnings (40 ) 1 5 (180 ) 11,042 25 8,723 (2) 57 4,188 — Included in other comprehensive income — — — — (6,112 ) (3,065 ) — — — — Purchases and contributions 33 — 20 34,478 — — 1,226 — — — Sales (31 ) — — (34,621 ) (63,611 ) — (4,307 ) — — — Redemptions by issuer — — — — — (250 ) — (681 ) — — Distributions — (3 ) — — — — (4,187 ) (542 ) — — Transfers: (3) Into Level 3 209 — — — — — — — — — Out of Level 3 (15 ) — (69 ) — — — — — — — Fair value September 30, 2015 $ 156 $ 9 $ — $ 1,986 $ 28,015 $ 110,749 $ 77,435 $ 565 $ 4,975 $ (58 ) 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 $ (40 ) $ 1 $ — $ 11 $ (910 ) $ (3,065 ) $ 7,252 $ (57 ) $ 4,203 $ — (1) Effective September 30, 2016 we adopted new accounting guidance related to the classification and disclosure of certain investments using the NAV as a practical expedient to measure the fair value of the investment. These prior year amounts reflect the effect of reclassifications to conform the prior year to current year presentation. Accordingly, the amounts presented above do not include our investments measured at NAV, see Notes 1 , 2 , and the “investments in private equity measured at net asset value per share” section within this footnote, for additional information. (2) 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 $7 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 $2 million . (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, 2014 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 Non- agency CMOs & ABS Equity securities Other Non- agency CMOs ARS – ARS - Private equity investments not measured at NAV (1) Other investments Other receivables Other assets Other liabilities Fair value September 30, 2013 $ 14 $ 35 $ 3,956 $ 78 $ 130,934 $ 110,784 $ 82,390 $ 4,607 $ 2,778 $ 15 $ (60 ) Total gains (losses) for the year: Included in earnings (1 ) 6 (371 ) (27 ) 7,046 44 4,143 174 (2,778 ) 772 2 Included in other comprehensive income — — — 22 (403 ) 3,536 — — — — — Purchases and contributions — 103 18,628 — — — 975 63 — — — Sales — (98 ) (19,904 ) (38 ) (23,355 ) — (7,076 ) (2,698 ) — — — Redemptions by issuer — — — — (27,526 ) (325 ) — (64 ) — — — Distributions (2 ) — — (35 ) — — (11,741 ) (351 ) — — — Transfers: (2) — Into Level 3 — — — — — — 7,289 (3) — — — — Out of Level 3 — (2 ) — — — — — — — — — Fair value September 30, 2014 $ 11 $ 44 $ 2,309 $ — $ 86,696 $ 114,039 $ 75,980 $ 1,731 $ — $ 787 $ (58 ) 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 $ 20 $ 6 $ (7 ) $ — $ (403 ) $ 3,536 $ 1,235 $ 267 $ — $ 772 $ — (1) Effective September 30, 2016 we adopted new accounting guidance related to the classification and disclosure of certain investments using the NAV as a practical expedient to measure the fair value of the investment. These prior year amounts reflect the effect of reclassifications to conform the prior year to current year presentation. Accordingly, the amounts presented above do not include our investments measured at NAV, see Notes 1 , 2 , and the “investments in private equity measured at net asset value per share” section within this footnote, for additional information. (2) Our policy is that the end of each respective quarterly reporting period determines when transfers of financial instruments between levels are recognized. (3) The transfers into Level 3 were comprised of transfers of balances previously included in other receivables on our Consolidated Statements of Financial Condition. |
Gains and Losses (Realized and Unrealized) Included in Revenues | Gains and losses related to Level 3 recurring fair value measurements included in earnings are presented in net trading profit, other revenues and other comprehensive income in our Consolidated Statements of Income and Comprehensive Income as follows: Net trading profits Other revenues Other comprehensive income (in thousands) For the year ended September 30, 2016 Total (losses) gains included in earnings $ (658 ) $ 9,259 $ (11,049 ) Change in unrealized (losses) gains for assets held at the end of the year $ (223 ) $ 8,992 $ (10,922 ) For the year ended September 30, 2015 Total (losses) gains included in earnings $ (214 ) $ 24,035 $ (9,177 ) Change in unrealized (losses) gains for assets held at the end of the year $ (28 ) $ 11,398 $ (3,975 ) For the year ended September 30, 2014 Total (losses) gains included in earnings $ (366 ) $ 9,376 $ 3,155 Change in unrealized gains (losses) for assets held at the end of the year $ 19 $ 2,274 $ 3,133 |
Significant Assumptions Used in Valuation of Level 3 Financial Instruments | The significant assumptions used in the valuation of level 3 financial instruments are as follows (the table that follows includes the significant majority of the financial instruments we hold that are classified as level 3 measures): Level 3 financial instrument Fair value at September 30, 2016 (in thousands) Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements: Available for sale securities: ARS: Municipals - issuer is a municipality $ 10,413 Discounted cash flow Average discount rate (a) 5.17% - 6.36% (5.77%) Average interest rates applicable to future interest income on the securities (b) 1.23% - 1.83% (1.53%) Prepayment year (c) 2019 - 2026 (2022) Municipals - tax-exempt preferred securities $ 14,734 Discounted cash flow Average discount rate (a) 4.62% - 5.62% (5.12%) Average interest rates applicable to future interest income on the securities (b) 0.91% - 0.91% (0.91%) Prepayment year (c) 2016 - 2021 (2021) Preferred securities - taxable $ 100,018 Discounted cash flow Average discount rate (a) 4.87% - 6.34% (5.56%) Average interest rates applicable to future interest income on the securities (b) 1.24% - 2.51% (1.34%) Prepayment year (c) 2016 - 2021 (2021) Private equity investments (not measured at NAV): $ 56,746 Income or market approach: Scenario 1 - income approach - discounted cash flow Discount rate (a) 13% - 20% (17.9%) Terminal growth rate of cash flows 3% - 3% (3%) Terminal year 2019 - 2021 (2020) Scenario 2 - market approach - market multiple method EBITDA Multiple (d) 5.25 - 7.5 (6.3) Weighting assigned to outcome of scenario 1/scenario 2 81%/19% $ 26,419 Transaction price or other investment-specific events (e) Not meaningful (e) Not meaningful (e) Nonrecurring measurements: Impaired loans: residential $ 21,909 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.24 yrs.) Impaired loans: corporate $ 26,073 Appraisal or discounted cash flow value (f) Not meaningful (f) Not meaningful (f) The text of the footnotes to the table above are on the following page. The text of the footnotes to the table on the previous page are as follows: (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 path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (c) Assumed year of at least a partial redemption of the outstanding security by the issuer. (d) Represents amounts used when we have determined that market participants would use such multiples when pricing the investments. (e) Certain private equity investments are valued initially at the transaction price until either our annual review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, when any of which indicate that a change in the carrying values of these investments is appropriate. (f) The valuation techniques used for the impaired corporate loan portfolio are appraisals less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. |
Net asset value of recorded value and unfunded commitments [Table Text Block] | The recorded value and unfunded commitments related to our private equity portfolio is as follows: Unfunded Commitment Recorded Value RJF (1) Noncontrolling Interest (2) Total (in thousands) September 30, 2016 Private equity investments at NAV $ 111,469 $ 27,542 $ 3,001 $ 30,543 Private equity investments at fair value 83,165 Total private equity investments $ 194,634 September 30, 2015 Private equity investments at NAV $ 131,653 $ 35,606 $ 3,326 $ 38,932 Private equity investments at fair value 77,435 Total private equity investments $ 209,088 (1) Represents RJF’s portion of unfunded commitments related to our private equity portfolio. (2) Unfunded commitments related to the portion of our private equity portfolio owned by others. Such commitments are required to be funded by the holders of the noncontrolling interests. |
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 certain of our financial instruments not carried at fair value are as follows: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total estimated fair value Carrying amount (in thousands) September 30, 2016 Financial assets: Bank loans, net (1) $ — $ 196,109 $ 14,925,802 $ 15,121,911 $ 15,121,430 Loans to financial advisors, net $ — $ — $ 706,717 $ 706,717 $ 838,721 Financial liabilities: Bank deposits $ — $ 13,947,310 $ 318,228 $ 14,265,538 $ 14,262,547 Other borrowings (2) $ — $ 34,520 $ — $ 34,520 $ 33,391 Senior notes payable $ 362,180 $ 1,452,071 $ — $ 1,814,251 $ 1,680,587 September 30, 2015 Financial assets: Bank loans, net (1) $ — $ 105,199 $ 12,799,065 $ 12,904,264 $ 12,907,776 Loans to financial advisors, net $ — $ — $ 420,868 $ 420,868 $ 488,760 Financial liabilities: Bank deposits $ — $ 11,564,963 $ 358,981 $ 11,923,944 $ 11,919,881 Other borrowings (2) $ — $ 38,455 $ — $ 38,455 $ 37,716 Senior notes payable $ 368,760 $ 892,963 $ — $ 1,261,723 $ 1,137,570 (1) Excludes all impaired loans and loans held for sale which have been recorded at fair value in the Consolidated Statements of Financial Condition at September 30, 2016 and 2015 . (2) Excludes the components of other borrowings that are recorded at amounts that approximate their fair value in the Consolidated Statements of Financial Condition at September 30, 2016 and 2015 . |
TRADING INSTRUMENTS AND TRADI41
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Trading Instruments and Trading Instruments Sold But Not Yet Purchased [Abstract] | |
Trading Instruments and Trading Instruments Sold but Not Yet Purchased | September 30, 2016 September 30, 2015 Trading instruments Instruments sold but not yet purchased Trading instruments Instruments sold but not yet purchased (in thousands) Municipal and provincial obligations $ 274,163 $ 1,161 $ 206,063 $ 18,313 Corporate obligations 132,885 31,074 95,317 33,184 Government and agency obligations 49,598 266,682 115,947 205,658 Agency MBS and CMOs 164,663 2,804 117,570 5,007 Non-agency CMOs and ABS 34,428 — 46,940 — Total debt securities 655,737 301,721 581,837 262,162 Derivative contracts (1) 55,703 8,835 42,086 20,239 Equity securities 16,029 18,382 28,344 3,098 Brokered certificates of deposit 35,206 — 30,803 — Other 4,130 — 7,481 2,494 Total $ 766,805 $ 328,938 $ 690,551 $ 287,993 (1) Represents the derivative contracts held for trading purposes. These balances do not include all derivative instruments. See Note 18 for further information regarding all of our derivative transactions, and see Note 19 for additional information regarding offsetting financial instruments. |
AVAILABLE FOR SALE SECURITIES (
AVAILABLE FOR SALE SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 unrealized gains Gross unrealized losses Fair value (in thousands) September 30, 2016 Available for sale securities: Agency MBS and CMOs $ 680,341 $ 2,512 $ (556 ) $ 682,297 Non-agency CMOs (1) 53,427 9 (2,917 ) 50,519 Other securities 1,575 — (158 ) 1,417 Total RJ Bank available for sale securities 735,343 2,521 (3,631 ) 734,233 Auction rate securities: Municipal obligations 27,491 14 (2,358 ) 25,147 Preferred securities 103,226 — (3,208 ) 100,018 Total auction rate securities 130,717 14 (5,566 ) 125,165 Total available for sale securities $ 866,060 $ 2,535 $ (9,197 ) $ 859,398 September 30, 2015 Available for sale securities: Agency MBS and CMOs $ 301,001 $ 1,538 $ (344 ) $ 302,195 Non-agency CMOs (2) 75,678 18 (4,327 ) 71,369 Other securities 1,575 — (173 ) 1,402 Total RJ Bank available for sale securities 378,254 1,556 (4,844 ) 374,966 Auction rate securities: Municipal obligations 28,966 576 (1,527 ) 28,015 Preferred securities 104,302 6,447 — 110,749 Total auction rate securities 133,268 7,023 (1,527 ) 138,764 Total available for sale securities $ 511,522 $ 8,579 $ (6,371 ) $ 513,730 September 30, 2014 Available for sale securities: Agency MBS and CMOs $ 267,927 $ 822 $ (1,029 ) $ 267,720 Non-agency CMOs (3) 98,946 56 (7,084 ) 91,918 Other securities 1,575 341 — 1,916 Total RJ Bank available for sale securities 368,448 1,219 (8,113 ) 361,554 Auction rate securities: Municipal obligations 81,535 6,240 (1,079 ) 86,696 Preferred securities 104,526 9,513 — 114,039 Total auction rate securities 186,061 15,753 (1,079 ) 200,735 Total available for sale securities $ 554,509 $ 16,972 $ (9,192 ) $ 562,289 (1) As of September 30, 2016 , the non-credit portion of unrealized losses related to non-agency CMOs with previously recorded OTTI was $2.3 million (before taxes) recorded in AOCI. See Note 22 for additional information. (2) As of September 30, 2015 , the non-credit portion of unrealized losses related to non-agency CMOs with previously recorded OTTI was $3.6 million (before taxes) recorded in AOCI. (3) As of September 30, 2014 , the non-credit portion of unrealized losses related to non-agency CMOs with previously recorded OTTI was $6.1 million (before taxes) recorded in AOCI. |
Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available For Sales Securities | The contractual maturities, amortized cost, carrying values and current yields for our available for sale securities are as presented below. Since RJ Bank’s available for sale securities (MBS & CMOs) are backed by mortgages, actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. Expected maturities of ARS may differ significantly from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2016 Within one year After one but within five years After five but within ten years After ten years Total ($ in thousands) Agency MBS & CMOs: Amortized cost $ 1 $ 27,476 $ 100,033 $ 552,831 $ 680,341 Carrying value $ 1 $ 27,799 $ 100,729 $ 553,768 $ 682,297 Weighted-average yield 0.54 % 1.66 % 1.46 % 1.49 % 1.49 % Non-agency CMOs: Amortized cost $ — $ — $ — $ 53,427 $ 53,427 Carrying value $ — $ — $ — $ 50,519 $ 50,519 Weighted-average yield — — — 2.56 % 2.56 % Other securities: Amortized cost $ — $ — $ — $ 1,575 $ 1,575 Carrying value $ — $ — $ — $ 1,417 $ 1,417 Weighted-average yield — — — — — Sub-total agency MBS & CMOs, non-agency CMOs and other securities: Amortized cost $ 1 $ 27,476 $ 100,033 $ 607,833 $ 735,343 Carrying value $ 1 $ 27,799 $ 100,729 $ 605,704 $ 734,233 Weighted-average yield 0.54 % 1.66 % 1.46 % 1.58 % 1.57 % Auction rate securities Municipal obligations: Amortized cost $ — $ — $ — $ 27,491 $ 27,491 Carrying value $ — $ — $ — $ 25,147 $ 25,147 Weighted-average yield — — — 1.77 % 1.77 % Preferred securities: Amortized cost $ — $ — $ — $ 103,226 $ 103,226 Carrying value $ — $ — $ — $ 100,018 $ 100,018 Weighted-average yield — — — 0.87 % 0.87 % Sub-total auction rate securities: Amortized cost $ — $ — $ — $ 130,717 $ 130,717 Carrying value $ — $ — $ — $ 125,165 $ 125,165 Weighted-average yield — — — 1.05 % 1.05 % Total available for sale securities: Amortized cost $ 1 $ 27,476 $ 100,033 $ 738,550 $ 866,060 Carrying value $ 1 $ 27,799 $ 100,729 $ 730,869 $ 859,398 Weighted-average yield 0.54 % 1.66 % 1.46 % 1.49 % 1.49 % |
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, 2016 Less than 12 months 12 months or more Total Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses (in thousands) Agency MBS and CMOs $ 208,880 $ (361 ) $ 28,893 $ (195 ) $ 237,773 $ (556 ) Non-agency CMOs 4,256 (21 ) 44,137 (2,896 ) 48,393 (2,917 ) Other securities 1,417 (158 ) — — 1,417 (158 ) ARS municipal obligations 13,204 (697 ) 11,695 (1,661 ) 24,899 (2,358 ) ARS preferred securities 98,489 (3,208 ) — — 98,489 (3,208 ) Total $ 326,246 $ (4,445 ) $ 84,725 $ (4,752 ) $ 410,971 $ (9,197 ) September 30, 2015 Less than 12 months 12 months or more Total Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses (in thousands) Agency MBS and CMOs $ 3,488 $ (37 ) $ 29,524 $ (307 ) $ 33,012 $ (344 ) Non-agency CMOs — — 65,854 (4,327 ) 65,854 (4,327 ) Other securities 1,402 (173 ) — — 1,402 (173 ) ARS municipal obligations 225 (3 ) 11,627 (1,524 ) 11,852 (1,527 ) Total $ 5,115 $ (213 ) $ 107,005 $ (6,158 ) $ 112,120 $ (6,371 ) |
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, 2016 Range Weighted- average (1) Default rate 0% - 8.2% 3.07% Loss severity 0% - 53.8% 32.09% Prepayment rate 6.5% - 19.6% 12.22% (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, 2016 2015 2014 (in thousands) Amount related to credit losses on securities we held at the beginning of the year $ 11,847 $ 18,703 $ 28,217 Decreases to the amount related to credit loss for securities sold during the year (3,740 ) (6,856 ) (9,541 ) Additional increases to the amount related to credit loss for which an OTTI was previously recognized — — 27 Amount related to credit losses on securities we held at the end of the year $ 8,107 $ 11,847 $ 18,703 |
RECEIVABLES FROM AND PAYABLES43
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Receivables From and Payables To Brokerage Clients [Abstract] | |
Amount Receivable to Brokerage Clients | The amount receivable from clients is as follows: September 30, 2016 2015 (in thousands) Brokerage client receivables $ 2,715,428 $ 2,185,586 Allowance for doubtful accounts (646 ) (290 ) Brokerage client receivables, net $ 2,714,782 $ 2,185,296 |
Amounts Payable to Brokerage Clients | The following table presents a summary of such payables: September 30, 2016 2015 Brokerage client payables: (in thousands) Interest bearing $ 4,893,813 $ 4,148,952 Non-interest bearing 1,550,858 522,121 Total brokerage client payables $ 6,444,671 $ 4,671,073 |
BANK LOANS, NET (Tables)
BANK LOANS, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 2014 Balance % Balance % Balance % ($ in thousands) Loans held for sale, net (1) $ 214,286 1 % $ 119,519 1 % $ 45,988 — Loans held for investment: Domestic: C&I loans 6,402,675 42 % 5,893,631 44 % 5,378,592 49 % CRE construction loans 107,437 1 % 126,402 1 % 76,733 1 % CRE loans 2,188,652 14 % 1,679,332 13 % 1,415,093 13 % Tax-exempt loans 740,944 5 % 484,537 4 % 122,218 1 % Residential mortgage loans 2,439,286 16 % 1,959,786 15 % 1,749,513 16 % SBL 1,903,930 12 % 1,479,562 11 % 1,021,358 9 % Foreign: C&I loans 1,067,698 7 % 1,034,387 8 % 1,043,755 9 % CRE construction loans 15,281 — 35,954 — 17,462 — CRE loans 365,419 2 % 374,822 3 % 274,070 2 % Residential mortgage loans 2,283 — 2,828 — 2,234 — SBL 897 — 1,942 — 2,390 — Total loans held for investment 15,234,502 13,073,183 11,103,418 Net unearned income and deferred expenses (40,675 ) (32,424 ) (37,533 ) Total loans held for investment, net (1) 15,193,827 13,040,759 11,065,885 Total loans held for sale and investment 15,408,113 100 % 13,160,278 100 % 11,111,873 100 % Allowance for loan losses (197,378 ) (172,257 ) (147,574 ) Bank loans, net $ 15,210,735 $ 12,988,021 $ 10,964,299 September 30, 2013 2012 Balance % Balance % ($ in thousands) Loans held for sale, net (1) $ 110,292 1 % $ 160,515 2 % Loans held for investment: Domestic: C&I loans 4,439,668 50 % 4,553,061 55 % CRE construction loans 38,964 — 26,360 1 % CRE loans 1,075,986 12 % 828,414 10 % Residential mortgage loans 1,743,787 20 % 1,690,465 21 % SBL 554,210 6 % 350,770 4 % Foreign: C&I loans 806,337 9 % 465,770 6 % CRE construction loans 21,876 — 23,114 — CRE loans 207,060 2 % 108,036 1 % Residential mortgage loans 1,863 — 1,521 — SBL 1,595 — 1,725 — Total loans held for investment 8,891,346 8,049,236 Net unearned income and deferred expenses (43,936 ) (70,698 ) Total loans held for investment, net (1) 8,847,410 7,978,538 Total loans held for sale and investment 8,957,702 100 % 8,139,053 100 % Allowance for loan losses (136,501 ) (147,541 ) Bank loans, net $ 8,821,201 $ 7,991,512 (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: C&I CRE Residential mortgage Total (in thousands) Year ended September 30, 2016 Purchases $ 457,503 $ 24,869 $ 371,710 (2) $ 854,082 Sales (1) $ 172,968 $ — $ — $ 172,968 Year ended September 30, 2015 Purchases $ 792,921 $ — $ 220,311 (3) $ 1,013,232 Sales (1) $ 108,983 $ — $ — $ 108,983 Year ended September 30, 2014 Purchases $ 536,167 $ 5,000 $ 29,667 $ 570,834 Sales (1) $ 219,914 $ — $ — $ 219,914 (1) Represents the recorded investment of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. Corporate loan sales generally occur as part of a loan workout situation. (2) Includes the purchase from other financial institutions of residential mortgage loans totaling $294 million in principal loan balance. (3) Includes the purchase from another financial institution of residential mortgage loans totaling $207 million in principal loan balance. |
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: 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total loans held for investment (2) (in thousands) As of September 30, 2016: C&I loans $ — $ — $ — $ 35,194 $ 7,435,179 $ 7,470,373 CRE construction loans — — — — 122,718 122,718 CRE loans — — — 4,230 2,549,841 2,554,071 Tax-exempt loans — — — — 740,944 740,944 Residential mortgage loans: First mortgage loans 1,766 — 1,766 41,746 2,377,357 2,420,869 Home equity loans/lines — — — 37 20,663 20,700 SBL — — — — 1,904,827 1,904,827 Total loans held for investment, net $ 1,766 $ — $ 1,766 $ 81,207 $ 15,151,529 $ 15,234,502 As of September 30, 2015: C&I loans $ 163 $ — $ 163 $ — $ 6,927,855 $ 6,928,018 CRE construction loans — — — — 162,356 162,356 CRE loans — — — 4,796 2,049,358 2,054,154 Tax-exempt loans — — — — 484,537 484,537 Residential mortgage loans: First mortgage loans 2,906 — 2,906 47,504 1,891,384 1,941,794 Home equity loans/lines 30 — 30 319 20,471 20,820 SBL — — — — 1,481,504 1,481,504 Total loans held for investment, net $ 3,099 $ — $ 3,099 $ 52,619 $ 13,017,465 $ 13,073,183 (1) Includes $54 million and $22 million of nonaccrual loans at September 30, 2016 and 2015 , 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, 2016 2015 Gross recorded investment Unpaid principal balance Allowance for losses Gross recorded investment Unpaid principal balance Allowance for losses (in thousands) Impaired loans with allowance for loan losses: (1) C&I loans $ 35,194 $ 35,872 $ 13,351 $ 10,599 $ 11,204 $ 1,132 Residential - first mortgage loans 30,393 41,337 3,147 35,442 48,828 4,014 Total 65,587 77,209 16,498 46,041 60,032 5,146 Impaired loans without allowance for loan losses: (2) CRE loans 4,230 11,611 — 4,796 11,611 — Residential - first mortgage loans 17,809 26,486 — 20,221 29,598 — Total 22,039 38,097 — 25,017 41,209 — Total impaired loans $ 87,626 $ 115,306 $ 16,498 $ 71,058 $ 101,241 $ 5,146 (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, 2016 2015 2014 (in thousands) Average impaired loan balance: C&I loans $ 18,112 $ 11,311 $ 6,183 CRE loans 4,474 14,694 23,416 Residential mortgage loans: First mortgage loans 51,554 59,049 70,370 Home equity loans/lines — — 21 Total $ 74,140 $ 85,054 $ 99,990 Interest income recognized: Residential mortgage loans: First mortgage loans $ 1,413 $ 1,426 $ 1,592 Total $ 1,413 $ 1,426 $ 1,592 |
Impact of TDRs | The table below presents the TDR’s that occurred during the respective periods presented: Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment ($ in thousands) Year ended September 30, 2016 Residential – first mortgage loans 1 $ 236 $ 236 Year ended September 30, 2015 Residential – first mortgage loans 6 1,117 1,196 Year ended September 30, 2014 C&I loans 1 19,200 $ 15,035 CRE loans 2 22,291 $ 22,291 Residential – first mortgage loans 14 $ 3,599 $ 3,892 Total 17 $ 45,090 $ 41,218 |
Credit Quality of Held for Investment Loan Portfolio | The credit quality of RJ Bank’s held for investment loan portfolio is as follows: Pass Special mention (1) Substandard (1) Doubtful (1) Total (in thousands) September 30, 2016 C&I $ 7,241,055 $ 117,046 $ 112,272 $ — $ 7,470,373 CRE construction 122,718 — — — 122,718 CRE 2,549,672 — 4,399 — 2,554,071 Tax-exempt 740,944 — — — 740,944 Residential mortgage First mortgage 2,355,393 11,349 54,127 — 2,420,869 Home equity 20,413 182 105 — 20,700 SBL 1,904,827 — — — 1,904,827 Total $ 14,935,022 $ 128,577 $ 170,903 $ — $ 15,234,502 September 30, 2015 C&I $ 6,739,179 $ 97,623 $ 91,216 $ — $ 6,928,018 CRE construction 162,356 — — — 162,356 CRE 2,034,692 39 19,423 — 2,054,154 Tax-exempt 484,537 — — — 484,537 Residential mortgage First mortgage 1,868,044 14,890 58,860 — 1,941,794 Home equity 20,372 128 320 — 20,820 SBL 1,481,504 — — — 1,481,504 Total $ 12,790,684 $ 112,680 $ 169,819 $ — $ 13,073,183 (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% $ 804,559 LTV greater than 50% but less than 80% 1,256,436 LTV greater than 80% but less than 100% 66,307 LTV greater than 100%, but less than 120% 11,106 LTV greater than 120% 858 Total $ 2,139,266 (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 C&I CRE construction CRE Tax-exempt Residential mortgage SBL Total (in thousands) Year ended September 30, 2016 Balance at beginning of year: $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 Provision (benefit) for loan losses 23,051 (1,023 ) 5,997 (1,849 ) 191 1,800 28,167 Net (charge-offs)/recoveries: Charge-offs (2,956 ) — — — (1,470 ) — (4,426 ) Recoveries — — — — 1,417 — 1,417 Net charge-offs (2,956 ) — — — (53 ) — (3,009 ) Foreign exchange translation adjustment (17 ) (70 ) 50 — — — (37 ) Balance at September 30, 2016 $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 Year ended September 30, 2015 Balance at beginning of year: $ 103,179 $ 1,594 $ 25,022 $ 1,380 $ 14,350 $ 2,049 $ 147,574 Provision (benefit) for loan losses 16,091 1,176 2,205 4,569 (1,363 ) 892 23,570 Net (charge-offs)/recoveries: Charge-offs (1,191 ) — — — (1,667 ) — (2,858 ) Recoveries 611 — 3,773 — 1,206 25 5,615 Net (charge-offs)/recoveries (580 ) — 3,773 — (461 ) 25 2,757 Foreign exchange translation adjustment (1,067 ) (63 ) (514 ) — — — (1,644 ) Balance at September 30, 2015 $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 Year ended September 30, 2014 Balance at beginning of year: $ 95,994 $ 1,000 $ 19,266 $ — $ 19,126 $ 1,115 $ 136,501 Provision (benefit) for loan losses 9,560 625 5,860 1,380 (4,759 ) 899 13,565 Net (charge-offs)/recoveries: Charge-offs (1,845 ) — (16 ) — (2,015 ) — (3,876 ) Recoveries 16 — 80 — 1,998 35 2,129 Net (charge-offs)/recoveries (1,829 ) — 64 — (17 ) 35 (1,747 ) Foreign exchange translation adjustment (546 ) (31 ) (168 ) — — — (745 ) Balance at September 30, 2014 $ 103,179 $ 1,594 $ 25,022 $ 1,380 $ 14,350 $ 2,049 $ 147,574 |
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 Allowance for loan losses Recorded investment (1) Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total (in thousands) September 30, 2016 C&I $ 13,351 $ 124,350 $ 137,701 $ 35,194 $ 7,435,179 $ 7,470,373 CRE construction — 1,614 1,614 — 122,718 122,718 CRE — 36,533 36,533 4,230 2,549,841 2,554,071 Tax-exempt — 4,100 4,100 — 740,944 740,944 Residential mortgage 3,156 9,508 12,664 56,735 2,384,834 2,441,569 SBL — 4,766 4,766 — 1,904,827 1,904,827 Total $ 16,507 $ 180,871 $ 197,378 $ 96,159 $ 15,138,343 $ 15,234,502 September 30, 2015 C&I $ 1,132 116,491 $ 117,623 $ 10,599 $ 6,917,419 $ 6,928,018 CRE construction — 2,707 2,707 — 162,356 162,356 CRE — 30,486 30,486 4,796 2,049,358 2,054,154 Tax-exempt — 5,949 5,949 — 484,537 484,537 Residential mortgage 4,046 8,480 12,526 62,706 1,899,908 1,962,614 SBL — 2,966 2,966 — 1,481,504 1,481,504 Total $ 5,178 $ 167,079 $ 172,257 $ 78,101 $ 12,995,082 $ 13,073,183 (1) Excludes any net unearned income and deferred expenses. |
PREPAID EXPENSES AND OTHER AS45
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Assets | Prepaid expenses and other assets include the following: September 30, 2016 2015 (in thousands) Investments in company-owned life insurance (1) $ 417,137 $ 320,523 Prepaid expenses 91,129 75,528 Direct investment in LIHTC project partnerships by RJ Bank (2) 55,129 33,267 Investment in FHLB stock 38,813 35,582 Indemnification asset (3) 35,325 143,144 Investment in FRB stock 24,706 24,450 Prepaid compensation arising from 3Macs acquisition (4) 24,285 — Low-income housing tax credit fund financing asset (5) 20,543 24,452 Prepaid compensation associated with DBRSU awards (6) 15,170 — OREO (7) 4,497 4,631 Other assets 50,490 32,162 Prepaid expenses and other assets $ 777,224 $ 693,739 (1) As of September 30, 2016 , we own life insurance policies with a cumulative face value of $955.8 million . (2) See the discussion of the accounting policies regarding these investments in the “direct investments in LIHTC project partnerships” section of Note 2 . (3) The indemnification asset pertains to legal matters for which Regions (as hereinafter defined in Note 21 ) has indemnified RJF in connection with our acquisition of Morgan Keegan (as hereinafter defined in Note 21 ). The liabilities related to such matters are included in trade and other payables on our Consolidated Statements of Financial Condition. See Note 21 for additional information. (4) Asset arose from our acquisition of 3Macs. See the discussion of the circumstances giving rise to this asset in Note 3 . (5) In fiscal year 2010, we sold an investment in a low-income housing tax credit fund and we guaranteed the return on investment to one of the purchasers. As a result of selling this investment and providing a guaranteed return to its buyer, we are the primary beneficiary of the fund that was sold (see Note 11 for further information regarding the consolidation of this fund) and we 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 $20.5 million and $24.5 million is included in trade and other payables on our Consolidated Statements of Financial Condition as of September 30, 2016 and 2015 , respectively. See Note 21 for further discussion of our obligations under the guarantee. (6) See the discussion of the DBRSU awards in the “share-based compensation” section of Note 2 , and additional information about such awards in Note 24 . (7) See the discussion of the accounting policies regarding OREO in the “nonperforming assets” section of Note 2 . |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities [Abstract] | |
VIEs Where We are the Primary Beneficiary - Aggregate Assets and Liabilities | The aggregate assets and liabilities of the VIEs we consolidate are provided in the table below. Aggregate assets (1) Aggregate liabilities (1) (in thousands) September 30, 2016 LIHTC Funds $ 107,511 $ 26,604 Guaranteed LIHTC Fund (2) 63,415 2,556 Restricted Stock Trust Fund 9,949 9,949 EIF Funds 3,749 — Total $ 184,624 $ 39,109 September 30, 2015 LIHTC Funds $ 143,111 $ 41,125 Guaranteed LIHTC Fund (2) 71,231 2,263 Restricted Stock Trust Fund 6,405 6,405 EIF Funds 4,627 — Total $ 225,374 $ 49,793 (1) Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE. (2) In connection with one of the multi-investor tax credit funds in which RJTCF is the managing member, RJTCF has provided one investor member with a guaranteed return on their investment in the fund. See Note 10 for information regarding the financing asset associated with this fund, and see Note 21 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 which 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, 2016 2015 (in thousands) Assets: Assets segregated pursuant to regulations and other segregated assets $ 7,547 $ 8,525 Receivables, other 5,493 5,542 Investments in real estate partnerships held by consolidated variable interest entities 157,228 199,678 Trust fund investment in RJF common stock (1) 9,948 6,404 Prepaid expenses and other assets 3,711 4,297 Total assets $ 183,927 $ 224,446 Liabilities and equity: Trade and other payables $ 13,231 $ 12,424 Intercompany payables 9,918 6,400 Loans payable of consolidated variable interest entities (2) 12,597 25,960 Total liabilities 35,746 44,784 RJF equity 6,094 6,121 Noncontrolling interests 142,087 173,541 Total equity 148,181 179,662 Total liabilities and equity $ 183,927 $ 224,446 (1) Included in treasury stock in our Consolidated Statements of Financial Condition. (2) Comprised of non-recourse loans. We are not contingently liable under any of these loans (see Note 16 for additional information). |
VIEs Where We are the Primary Beneficiary - Information about Net Income (Loss) of VIEs | The following table presents information about the net 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, 2016 2015 2014 (in thousands) Revenues: Interest $ 2 $ 2 $ 1 Other 46 (817 ) 1,334 Total revenues 48 (815 ) 1,335 Interest expense (1,021 ) (1,879 ) (2,900 ) Net revenues (973 ) (2,694 ) (1,565 ) Non-interest expenses (1) 42,507 38,179 40,819 Net loss including noncontrolling interests (43,480 ) (40,873 ) (42,384 ) Net loss attributable to noncontrolling interests (43,453 ) (40,829 ) (42,374 ) Net loss attributable to RJF $ (27 ) $ (44 ) $ (10 ) (1) Primarily comprised of items reported in other expense on our Consolidated Statements of Income and Comprehensive Income. |
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 as to which we have concluded we are not the primary beneficiary, are provided in the table below. September 30, 2016 2015 Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss (in thousands) LIHTC Funds $ 4,111,813 $ 1,406,453 $ 83,155 $ 3,317,594 $ 951,465 $ 42,244 NMTC Funds 65,338 68 12 65,388 40 12 Other Real Estate Limited Partnerships and LLCs 22,897 23,522 140 29,523 37,062 163 Total $ 4,200,048 $ 1,430,043 $ 83,307 $ 3,412,505 $ 988,567 $ 42,419 |
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 as of the dates indicated are provided in the table below: September 30, 2016 2015 Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss (in thousands) Managed Funds $ 99,483 $ 74 $ — $ 83,132 $ 22 $ 53 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | September 30, 2016 2015 (in thousands) Land $ 24,150 $ 20,104 Buildings, leasehold and land improvements 260,800 241,457 Furniture, fixtures, and equipment 200,947 179,952 Software 271,864 189,227 Construction in process 3,711 5,973 761,472 636,713 Less: Accumulated depreciation and amortization (440,015 ) (380,838 ) Total property and equipment, net $ 321,457 $ 255,875 |
GOODWILL AND IDENTIFIABLE INT48
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 (in thousands) Goodwill $ 408,072 $ 307,635 Identifiable intangible assets, net 96,370 69,327 Total goodwill and identifiable intangible assets, net $ 504,442 $ 376,962 |
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, 2014 $ 174,584 $ 120,902 $ 295,486 Additions 12,149 (1) — 12,149 Goodwill at September 30, 2015 $ 186,733 $ 120,902 $ 307,635 Additions 86,351 (2) 9,012 (3) 95,363 Foreign currency translation 2,437 2,637 5,074 Goodwill at September 30, 2016 $ 275,521 $ 132,551 $ 408,072 (1) The addition in fiscal year 2015 is directly attributable to the acquisition of TPC (see Notes 1 and 3 for additional information). (2) Of the total private client group segment additions in fiscal year 2016, $81.7 million is attributable to our acquisition of Alex. Brown, and $4.7 million is attributable to our acquisition of 3Macs. See Note 3 for additional information. The addition to goodwill associated with Alex. Brown is deductible for tax purposes over 15 years, the addition attributable to 3Macs is not deductible for tax purposes. (3) The capital markets segment goodwill addition in fiscal year 2016 is directly attributable to our acquisition of Mummert. This goodwill is not deductible for tax purposes. |
Schedule of Quantitative Analysis of Goodwill | The following summarizes certain key assumptions utilized in our quantitative analysis as of December 31, 2015: 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: RJ Ltd. Private Client Group $ 16,144 14 % 1.2x/12.4x 75 % 25 % Capital markets: RJ Ltd. Capital Markets 16,893 15 % 1.1x/14.4x 75 % 25 % Total $ 33,037 |
Schedule of Net Amortizable Intangible Assets | The following table sets forth 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, 2013 $ 9,191 $ 43,474 $ 12,329 $ 984 $ 65,978 Additions — — — 408 (1) 408 Amortization expense (580 ) (5,499 ) (1,333 ) (199 ) (7,611 ) Net identifiable intangible assets as of September 30, 2014 $ 8,611 $ 37,975 $ 10,996 $ 1,193 $ 58,775 Additions 10,290 (2) — 7,974 (3) 574 (1) 18,838 Amortization expense (719 ) (5,443 ) (1,833 ) (291 ) (8,286 ) Net identifiable intangible assets as of September 30, 2015 $ 18,182 $ 32,532 $ 17,137 $ 1,476 $ 69,327 Additions 36,624 (4) 1,013 (5) — 419 (1) 38,056 Amortization expense (1,870 ) (5,619 ) (2,226 ) (412 ) (10,127 ) Foreign currency translation — 11 (810 ) — (799 ) Impairment losses — — — (87 ) (87 ) Net identifiable intangible assets as of September 30, 2016 $ 52,936 $ 27,937 $ 14,101 $ 1,396 $ 96,370 (1) The additions are the result of mortgage servicing rights held by RJ Bank. The estimated useful life associated with these additions is approximately 10 years . (2) The fiscal year 2015 additions are directly attributable to the acquisition of identifiable intangible assets which include customer relationships, a trade name, developed technology, and non-compete agreements, arising from our acquisition of TPC (see Note 3 for additional information). (3) The fiscal year 2015 additions are directly attributable to the acquisition of identifiable intangible assets which include customer relationships, a trade name, intellectual property, and a non-compete agreement, arising from our acquisition of Cougar (see Note 3 for additional information). (4) The fiscal year 2016 additions are directly attributable to the acquisition of identifiable intangible assets which include customer relationships, trade names, seller relationship agreements, and non-compete agreements arising from our acquisitions of Alex. Brown and/or 3Macs (see Note 3 for additional information). The weighted-average useful life associated with these intangible assets, by major asset class, are 15 years for the customer relationships, four years for the trade names, six years for the seller relationship agreements, and three years for the non-compete agreements. Altogether the aggregate weighted-average useful life associated with these additions is 12 years . (5) The fiscal year 2016 addition is directly attributable to the acquisition of identifiable intangible assets, primarily a customer relationship intangible asset, arising from o ur acquisition of Mummert (see Note 3 for additional information). The weighted-average useful life associated with the addition is one year . |
Schedule of Finite-Lived Intangible Assets by Major Class | Identifiable intangible assets by type are presented below: September 30, 2016 2015 Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization (in thousands) Customer relationships $ 99,470 $ (22,895 ) $ 75,217 $ (17,759 ) Trade name 8,172 (499 ) 4,278 (111 ) Developed technology 12,630 (10,280 ) 12,630 (7,754 ) Intellectual property 516 (73 ) 561 (23 ) Non-compete agreements 3,314 (612 ) 1,018 (206 ) Seller relationship agreements 5,300 (69 ) — — Mortgage servicing rights 2,144 (748 ) 2,067 (591 ) Total $ 131,546 $ (35,176 ) $ 95,771 $ (26,444 ) |
Schedule of Projected Amortization Expense | Projected amortization expense by fiscal year associated with the identifiable intangible assets as of September 30, 2016 is as follows: Fiscal year ended September 30, (in thousands) 2017 $ 12,947 2018 11,156 2019 10,675 2020 9,895 2021 9,104 Thereafter 42,593 $ 96,370 |
BANK DEPOSITS (Tables)
BANK DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Summary of Bank Deposits | The following table presents a summary of bank deposits including the weighted-average rate: September 30, 2016 2015 Balance Weighted-average rate (1) Balance Weighted-average rate (1) ($ in thousands) Bank deposits: NOW accounts $ 4,958 0.01 % $ 4,752 0.01 % Demand deposits (non-interest-bearing) 7,264 — 9,295 — Savings and money market accounts 13,935,089 0.05 % 11,550,917 0.02 % Certificates of deposit 315,236 1.55 % 354,917 1.64 % Total bank deposits (2) $ 14,262,547 0.08 % $ 11,919,881 0.07 % (1) Weighted-average rate calculation is based on the actual deposit balances at September 30, 2016 and 2015 , respectively. (2) Bank deposits exclude affiliate deposits of approximately $353 million and $458 million at September 30, 2016 and 2015 , respectively. These affiliate deposits include $350 million and $451 million , held in a deposit account on behalf of RJF as of September 30, 2016 and 2015 , respectively (see Note 29 for additional information). |
Scheduled Maturities of Certificates of Deposit | Scheduled maturities of certificates of deposit are as follows: September 30, 2016 2015 Denominations greater than or equal to $100,000 Denominations less than $100,000 Denominations greater than or equal to $100,000 Denominations less than $100,000 (in thousands) Three months or less $ 14,252 $ 12,663 $ 6,206 $ 7,610 Over three through six months 14,191 9,750 11,731 7,304 Over six through twelve months 15,452 12,321 18,341 14,807 Over one through two years 32,816 11,060 43,133 33,163 Over two through three years 43,730 22,148 33,556 10,825 Over three through four years 58,425 28,863 51,140 23,616 Over four through five years 26,173 13,392 63,351 30,134 Total $ 205,039 $ 110,197 $ 227,458 $ 127,459 |
Interest Expense on Deposits | Interest expense on deposits is summarized as follows: Year ended September 30, 2016 2015 2014 (in thousands) Certificates of deposit $ 5,402 $ 5,839 $ 6,126 Money market, savings and NOW accounts (1) 4,816 2,543 1,833 Total interest expense on deposits $ 10,218 $ 8,382 $ 7,959 (1) The balances for the year ended September 30, 2016 are presented net of interest expense associated with affiliate deposits. |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Other Borrowings [Abstract] | |
Schedule of Other Borrowings | The following table details the components of other borrowings: September 30, 2016 2015 (in thousands) Other borrowings: FHLB advances $ 575,000 (1) $ 550,000 (2) Mortgage notes payable (3) 33,391 37,716 Borrowings on secured lines of credit (4) — 115,000 Borrowings on ClariVest revolving credit facility (5) 267 349 Borrowings on unsecured lines of credit (6) (7) — — Total other borrowings $ 608,658 $ 703,065 (1) Borrowings from the FHLB as of September 30, 2016 are comprised of three advances. The FHLB advances in the amount of $250 million , and $300 million , mature in September 2018 and have interest rates which reset quarterly. We use interest rate swaps to manage the risk of increases in interest rates associated with these floating-rate advances by converting all of these balances subject to variable interest rates to a fixed interest rate. Refer to Note 18 for information regarding these interest rate swaps which are accounted for as hedging instruments. The other FHLB advance, in the amount of $25 million , matures in October, 2020 and bears interest at a fixed rate of 3.4% . All of the FHLB advances are secured by a blanket lien granted to the FHLB on RJ Bank’s residential mortgage loan portfolio. The weighted average interest rate on these advances as of September 30, 2016 is 1.01% . (2) Borrowings from the FHLB at September 30, 2015 are comprised of two floating-rate advances, one in the amount of $250 million and the other in the amount of $300 million . Both of these advances were restructured during fiscal year 2016 in order to extend their maturity date. See the following page for the continuation of the explanations to the footnotes in the above table. Continuation of the footnote explanations pertaining to the table on the previous page. (3) Mortgage notes payable pertain to mortgage loans on our corporate headquarters offices located in St. Petersburg, Florida. These mortgage loans are secured by land, buildings, and improvements with a net book value of $44.7 million at September 30, 2016 . These mortgage loans bear interest at 5.7% with repayment terms of monthly interest and principal debt service and have a January 2023 maturity. (4) Borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities. (5) ClariVest Asset Management, LLC (“ClariVest”), a subsidiary of Eagle, is a party to a revolving line of credit provided by a third party lender (the “ClariVest Facility”). The maximum amount available to borrow under the ClariVest Facility is $500 thousand , bearing interest at a variable rate which is 1% over the lenders prime rate. The ClariVest Facility expires in September 2018 . (6) In August 2015, RJF entered into a revolving credit facility agreement in which the lenders are a number of financial institutions (the “RJF Credit Facility”). This committed unsecured borrowing facility provides for maximum borrowings of up to $300 million , at variable rates of interest, with a facility maturity date in August 2020. There are no borrowings outstanding on the RJF Credit Facility as of either September 30, 2016 or 2015 . The interest rate associated with the RJF Credit Facility is a variable rate that, among other factors, varies depending upon RJF’s credit rating. Based upon RJF’s credit rating as of September 30, 2016 , the variable borrowing rate is 1.75% per annum over LIBOR. There is a variable rate commitment fee associated with the RJF Credit Facility, such fee varying depending upon RJF’s credit rating. Based upon RJF’s credit rating as of September 30, 2016 , the variable rate commitment fee which applies to any difference between the daily borrowed amount and the committed amount, is 0.25% per annum. (7) Borrowings on unsecured lines of credit, with the exception of the RJF Credit Facility, are day-to-day and are generally utilized for cash management purposes. |
Schedule of Maturities of Other Borrowings | Our other borrowings as of September 30, 2016 , mature as follows based on their contractual terms: Fiscal year ended September 30, (in thousands) 2017 $ 4,578 2018 555,113 2019 5,130 2020 5,430 2021 30,748 Thereafter 7,659 Total $ 608,658 Our senior notes payable outstanding as of September 30, 2016 , mature as follows based on their contractual terms: Fiscal year ended September 30, (in thousands) 2017 $ — 2018 — 2019 300,000 2020 — 2021 — Thereafter 1,400,000 Total $ 1,700,000 |
LOANS PAYABLE OF CONSOLIDATED51
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Loans Payable of Consolidated Variable Interest Entities [Abstract] | |
Variable Interest Entities' Loans Payable | VIEs’ loans payable are presented below: September 30, 2016 2015 (in thousands) Current portion of loans payable $ 8,306 $ 13,363 Long-term portion of loans payable 4,291 12,597 Total loans payable $ 12,597 $ 25,960 |
Contractual Maturities of Variable Interest Entities' Borrowings | The principal amount of the VIEs’ borrowings as of September 30, 2016 , mature as follows based on their contractual terms: Fiscal year ended September 30, (in thousands) 2017 $ 8,306 2018 3,613 2019 678 Total $ 12,597 |
SENIOR NOTES PAYABLE (Tables)
SENIOR NOTES PAYABLE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes Payable | The following summarizes our senior notes payable: September 30, 2016 2015 (in thousands) 4.25% senior notes, due 2016 (1) $ — $ 250,000 8.60% senior notes, due 2019 (2) 300,000 300,000 5.625% senior notes, due 2024 (3) 250,000 250,000 3.625% senior notes, due 2026 (4) 500,000 — 6.90% senior notes, due 2042 (5) 350,000 350,000 4.95% senior notes, due 2046 (6) 300,000 — 1,700,000 1,150,000 Unaccreted discount (1,601 ) (778 ) Debt issuance costs (17,812 ) (11,652 ) Total senior notes payable $ 1,680,587 $ 1,137,570 (1) In April 2011 , we sold in a registered underwritten public offering, $250 million in aggregate principal amount of 4.25% senior notes. The notes matured and were repaid in April 2016 . (2) 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. (3) 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. (4) In July 2016 , we sold in a registered underwritten public offering, $500 million in aggregate principal amount of 3.625% senior notes due September 2026 . 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 35 basis points, plus accrued and unpaid interest thereon to the redemption date. See the following page for the continuation of the explanations to the footnotes in the above table. Continuation of the footnote explanations pertaining to the table on the previous page. (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) In July 2016 , we sold in a registered underwritten public offering, $300 million in aggregate principal amount of 4.95% senior notes due July 2046 . 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 45 basis points, plus accrued and unpaid interest thereon to the redemption date. |
Schedule of Maturities of Senior Notes | Our other borrowings as of September 30, 2016 , mature as follows based on their contractual terms: Fiscal year ended September 30, (in thousands) 2017 $ 4,578 2018 555,113 2019 5,130 2020 5,430 2021 30,748 Thereafter 7,659 Total $ 608,658 Our senior notes payable outstanding as of September 30, 2016 , mature as follows based on their contractual terms: Fiscal year ended September 30, (in thousands) 2017 $ — 2018 — 2019 300,000 2020 — 2021 — Thereafter 1,400,000 Total $ 1,700,000 |
DERIVATIVE FINANCIAL INSTRUME53
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 September 30, 2015 Balance sheet location Notional amount Fair value (1) Balance sheet location Notional amount Fair value (1) (in thousands) Derivatives designated as hedging instruments: Forward foreign exchange contracts (2) Prepaid expenses and other assets $ 988,200 (3) $ 1,396 Prepaid expenses and other assets $ 752,600 (3) $ 613 Derivatives not designated as hedging instruments: Interest rate contracts (4) Trading instruments $ 2,036,233 $ 153,482 Trading instruments $ 2,473,946 $ 130,095 Interest rate contracts (4) Trading instruments $ 121,715 (3) $ 9,760 Trading instruments $ 74,873 (3) $ 2,612 Interest rate contracts (5) Derivative instruments associated with offsetting matched book positions $ 1,469,295 $ 422,196 Derivative instruments associated with offsetting matched book positions $ 1,649,863 $ 389,457 Forward foreign exchange contracts (2) Prepaid expenses and other assets $ 411,300 (3) $ 620 Prepaid expenses and other assets $ 214,300 (3) $ 304 Liability derivatives Derivatives designated as hedging instruments: Interest rate contracts (6) Trade and other payables $ 550,000 $ 26,671 Trade and other payables $ 300,000 $ 7,545 Derivatives not designated as hedging instruments: Interest rate contracts (4) Trading instruments sold $ 1,997,100 $ 145,296 Trading instruments sold $ 1,906,766 $ 104,255 Interest rate contracts (4) Trading instruments sold $ 133,108 (3) $ 6,398 Trading instruments sold $ 136,710 (3) $ 4,865 Interest rate contracts (5) Derivative instruments associated with offsetting matched book positions $ 1,469,295 $ 422,196 Derivative instruments associated with offsetting matched book positions $ 1,649,863 $ 389,457 DBRSUs (7) Accrued compensation, commissions and benefits $ 17,769 (8) $ 17,769 (9) — $ — $ — (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. See Note 19 for additional information regarding offsetting asset and liability balances. (2) These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. (3) The notional amount presented is denominated in Canadian currency. (4) These contracts arise from our OTC Derivatives Operations. (5) These contracts arise from our Offsetting Matched Book Derivatives Operations. (6) These contracts are associated with our RJ Bank Interest Hedges activities. (7) This derivative liability arose from our acquisition of Alex. Brown. See the discussion of the circumstances giving rise to this liability in Note 3 . (8) The notional amount for the DBRSU derivative is the number of DBRSU awards to be settled in DB shares, times the DB share price as of September 30, 2016 . (9) The fair value of the DBRSU derivative includes both the pre-combination and the post-combination share obligation. |
Derivative Gain (Loss) Recognized in AOCI | (Losses) gains recognized in AOCI, net of income taxes, on derivatives are as follows (see Note 22 for additional information): Year ended September 30, 2016 2015 2014 (in thousands) Forward foreign exchange contracts $ (6,721 ) $ 60,331 $ 29,376 RJ Bank Interest Hedges (11,833 ) (4,650 ) — Total (losses) gains recognized in AOCI, net of taxes $ (18,554 ) $ 55,681 $ 29,376 |
Amount of Gain (Loss) on Derivatives Recognized in Income | The table below sets forth the impact of the derivatives not designated as hedging instruments on the Consolidated Statements of Income and Comprehensive Income: Location of the impact recognized on derivatives included in the Consolidated Statements of Income and Comprehensive Income Amount recognized during the year ended September 30, 2016 2015 2014 (in thousands) Derivatives not designated as hedging instruments: Interest rate contracts (1) Net trading profit $ 2,819 $ 3,107 $ 1,554 Interest rate contracts (2) Other revenues $ 92 $ 901 $ 712 Forward foreign exchange contracts (3) Other (loss) revenues $ (2,662 ) $ 20,459 $ 5,694 DBRSUs (4) Compensation, commissions and benefits (gain) $ (2,457 ) $ — $ — (1) These contracts arise from our OTC Derivatives Operations. (2) These contracts arise from our Offsetting Matched Book Derivatives Operations. (3) These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. (4) The derivative arose from our acquisition of Alex. Brown, see the discussion of the circumstances giving rise to this derivative in Note 3 . The impact of the change in value of the derivative in the current period is a gain, as the DB share price decreased. We also hold 900,000 shares of DB as of September 30, 2016 as an economic hedge against this obligation. The change in value of such DB shares since the AB Closing Date is recorded as a component of compensation, commissions and benefits expense on our Consolidated Statements of Income and Comprehensive Income, and partially offset a portion of this gain. |
DISCLOSURE OF OFFSETTING ASSE54
DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL ENCUMBERED ASSETS, AND REPURCHASE AGREEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure of Offsetting Assets and Liabilities, Collateral, Encumbered Assets and Repurchase Agreements [Abstract] | |
Offsetting assets | The following table presents information about the financial and derivative instruments that are offset or subject to an enforceable master netting arrangement or other similar agreement as of the dates indicated: Gross amounts not offset in the Statements of Financial Condition Gross amounts of recognized assets (liabilities) Gross amounts offset in the Statements of Financial Condition Net amounts presented in the Statements of Financial Condition Financial instruments Cash (received)paid Net amount (in thousands) As of September 30, 2016: Assets Securities purchased under agreements to resell and other collateralized financings $ 470,222 $ — $ 470,222 $ (470,222 ) (1) $ — $ — Derivatives - interest rate contracts (2) 153,482 (107,539 ) 45,943 (29,028 ) — 16,915 Derivatives - interest rate contracts (3) 9,760 — 9,760 — — 9,760 Derivatives - forward foreign exchange contracts (5) 2,016 — 2,016 — — 2,016 Derivative instruments associated with offsetting matched book positions 422,196 — 422,196 (422,196 ) (4) — — Stock borrowed 170,860 — 170,860 (167,169 ) — 3,691 Total assets $ 1,228,536 $ (107,539 ) $ 1,120,997 $ (1,088,615 ) $ — $ 32,382 Liabilities Securities sold under agreements to repurchase $ (193,229 ) $ — $ (193,229 ) $ 193,229 (6) $ — $ — Derivatives - interest rate contracts (2) (145,296 ) 142,859 (2,437 ) 2,437 (7) — — Derivatives - interest rate contracts (3) (6,398 ) — (6,398 ) — — (6,398 ) Derivatives - RJ Bank Interest Hedges (26,671 ) — (26,671 ) — 26,671 (8) — DBRSUs (9) (17,769 ) — (17,769 ) — — (17,769 ) Derivative instruments associated with offsetting matched book positions (422,196 ) — (422,196 ) 422,196 (4) — — Stock loaned (677,761 ) — (677,761 ) 664,870 — (12,891 ) Total liabilities $ (1,489,320 ) $ 142,859 $ (1,346,461 ) $ 1,282,732 $ 26,671 $ (37,058 ) As of September 30, 2015: Assets Securities purchased under agreements to resell and other collateralized financings $ 474,144 $ — $ 474,144 $ (474,144 ) (1) $ — $ — Derivatives - interest rate contracts (2) 130,095 (90,621 ) 39,474 (12,609 ) — 26,865 Derivatives - forward foreign exchange contracts (5) 917 — 917 — — 917 Derivatives - interest rate contracts (3) 2,612 — 2,612 — — 2,612 Derivative instruments associated with offsetting matched book positions 389,457 — 389,457 (389,457 ) (4) — — Stock borrowed 124,373 — 124,373 (120,957 ) — 3,416 Total assets $ 1,121,598 $ (90,621 ) $ 1,030,977 $ (997,167 ) $ — $ 33,810 Liabilities Securities sold under agreements to repurchase $ (332,536 ) $ — $ (332,536 ) $ 332,536 (6) $ — $ — Derivatives - interest rate contracts (2) (104,255 ) 88,881 (15,374 ) 3,528 (7) 7,399 (7) (4,447 ) Derivatives - interest rate contracts (3) (4,865 ) — (4,865 ) — — (4,865 ) Derivatives - RJ Bank Interest Hedges (7,545 ) — (7,545 ) — 7,545 (8) — Derivative instruments associated with offsetting matched book positions (389,457 ) — (389,457 ) 389,457 (4) — — Stock loaned (478,573 ) — (478,573 ) 472,379 — (6,194 ) Total liabilities $ (1,317,231 ) $ 88,881 $ (1,228,350 ) $ 1,197,900 $ 14,944 $ (15,506 ) The text of the footnotes in the above table are on the following page. The text of the footnotes to the table on the previous page are as follows: (1) We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities purchased under agreements to resell and other collateralized financings amounts to $486 million and $499 million as of September 30, 2016 and 2015 , respectively. (2) Derivatives - interest rate contracts are included in trading instruments on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (3) Derivatives - interest rate contracts (in which the notional amount is denominated in Canadian currency) are included in trading instruments on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (4) Although these derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the nature of the agreement with the third party intermediary include terms that are similar to a master netting agreement, thus we present the offsetting amounts net in this table. See Note 18 for further discussion of the “pass through” structure of the derivative instruments associated with Offsetting Matched Book Derivatives Operations. (5) These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. As of both September 30, 2016 and 2015 , the fair value of the forward foreign exchange contract derivatives are in an asset position and are included in prepaid expenses and other assets on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (6) We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities sold under agreements to repurchase amounts to $200 million and $346 million as of September 30, 2016 and 2015 , respectively. (7) For the portion of these derivative contracts that are transacted through an exchange, the nature of the agreement with the clearing member exchange include terms that are similar to a master netting agreement, thus we are over-collateralized as of September 30, 2016 and 2015 since the actual amount of cash and securities deposited with the exchange for these derivative contracts is $8 million and $18 million , respectively. These deposits are a component of deposits with clearing organizations on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (8) Derivatives - RJ Bank Interest Hedges are included in trade and other payables on our Consolidated Statements of Financial Condition. See Note 18 for additional information. The RJ Bank Interest Hedges are transacted through an exchange. The nature of the agreement with the clearing member exchange includes terms that are similar to a master netting agreement. We are over-collateralized since the actual amount of cash and securities deposited with the exchange for these derivative contracts is $42 million and $15 million as of September 30, 2016 , and 2015 , respectively. These deposits are included in deposits with clearing organizations on our Consolidated Statements of Financial Condition. (9) This derivative liability arose from our acquisition of Alex. Brown. See the discussion of the circumstances giving rise to this liability in Note 3 . As of September 30, 2016 , we hold 900,000 DB shares with a fair value of $12 million as an economic hedge against the DBRSUs obligation. See additional discussion of the DBRSUs in Note 24 . |
Offsetting liabilities | The following table presents information about the financial and derivative instruments that are offset or subject to an enforceable master netting arrangement or other similar agreement as of the dates indicated: Gross amounts not offset in the Statements of Financial Condition Gross amounts of recognized assets (liabilities) Gross amounts offset in the Statements of Financial Condition Net amounts presented in the Statements of Financial Condition Financial instruments Cash (received)paid Net amount (in thousands) As of September 30, 2016: Assets Securities purchased under agreements to resell and other collateralized financings $ 470,222 $ — $ 470,222 $ (470,222 ) (1) $ — $ — Derivatives - interest rate contracts (2) 153,482 (107,539 ) 45,943 (29,028 ) — 16,915 Derivatives - interest rate contracts (3) 9,760 — 9,760 — — 9,760 Derivatives - forward foreign exchange contracts (5) 2,016 — 2,016 — — 2,016 Derivative instruments associated with offsetting matched book positions 422,196 — 422,196 (422,196 ) (4) — — Stock borrowed 170,860 — 170,860 (167,169 ) — 3,691 Total assets $ 1,228,536 $ (107,539 ) $ 1,120,997 $ (1,088,615 ) $ — $ 32,382 Liabilities Securities sold under agreements to repurchase $ (193,229 ) $ — $ (193,229 ) $ 193,229 (6) $ — $ — Derivatives - interest rate contracts (2) (145,296 ) 142,859 (2,437 ) 2,437 (7) — — Derivatives - interest rate contracts (3) (6,398 ) — (6,398 ) — — (6,398 ) Derivatives - RJ Bank Interest Hedges (26,671 ) — (26,671 ) — 26,671 (8) — DBRSUs (9) (17,769 ) — (17,769 ) — — (17,769 ) Derivative instruments associated with offsetting matched book positions (422,196 ) — (422,196 ) 422,196 (4) — — Stock loaned (677,761 ) — (677,761 ) 664,870 — (12,891 ) Total liabilities $ (1,489,320 ) $ 142,859 $ (1,346,461 ) $ 1,282,732 $ 26,671 $ (37,058 ) As of September 30, 2015: Assets Securities purchased under agreements to resell and other collateralized financings $ 474,144 $ — $ 474,144 $ (474,144 ) (1) $ — $ — Derivatives - interest rate contracts (2) 130,095 (90,621 ) 39,474 (12,609 ) — 26,865 Derivatives - forward foreign exchange contracts (5) 917 — 917 — — 917 Derivatives - interest rate contracts (3) 2,612 — 2,612 — — 2,612 Derivative instruments associated with offsetting matched book positions 389,457 — 389,457 (389,457 ) (4) — — Stock borrowed 124,373 — 124,373 (120,957 ) — 3,416 Total assets $ 1,121,598 $ (90,621 ) $ 1,030,977 $ (997,167 ) $ — $ 33,810 Liabilities Securities sold under agreements to repurchase $ (332,536 ) $ — $ (332,536 ) $ 332,536 (6) $ — $ — Derivatives - interest rate contracts (2) (104,255 ) 88,881 (15,374 ) 3,528 (7) 7,399 (7) (4,447 ) Derivatives - interest rate contracts (3) (4,865 ) — (4,865 ) — — (4,865 ) Derivatives - RJ Bank Interest Hedges (7,545 ) — (7,545 ) — 7,545 (8) — Derivative instruments associated with offsetting matched book positions (389,457 ) — (389,457 ) 389,457 (4) — — Stock loaned (478,573 ) — (478,573 ) 472,379 — (6,194 ) Total liabilities $ (1,317,231 ) $ 88,881 $ (1,228,350 ) $ 1,197,900 $ 14,944 $ (15,506 ) The text of the footnotes in the above table are on the following page. The text of the footnotes to the table on the previous page are as follows: (1) We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities purchased under agreements to resell and other collateralized financings amounts to $486 million and $499 million as of September 30, 2016 and 2015 , respectively. (2) Derivatives - interest rate contracts are included in trading instruments on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (3) Derivatives - interest rate contracts (in which the notional amount is denominated in Canadian currency) are included in trading instruments on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (4) Although these derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the nature of the agreement with the third party intermediary include terms that are similar to a master netting agreement, thus we present the offsetting amounts net in this table. See Note 18 for further discussion of the “pass through” structure of the derivative instruments associated with Offsetting Matched Book Derivatives Operations. (5) These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. As of both September 30, 2016 and 2015 , the fair value of the forward foreign exchange contract derivatives are in an asset position and are included in prepaid expenses and other assets on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (6) We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities sold under agreements to repurchase amounts to $200 million and $346 million as of September 30, 2016 and 2015 , respectively. (7) For the portion of these derivative contracts that are transacted through an exchange, the nature of the agreement with the clearing member exchange include terms that are similar to a master netting agreement, thus we are over-collateralized as of September 30, 2016 and 2015 since the actual amount of cash and securities deposited with the exchange for these derivative contracts is $8 million and $18 million , respectively. These deposits are a component of deposits with clearing organizations on our Consolidated Statements of Financial Condition. See Note 18 for additional information. (8) Derivatives - RJ Bank Interest Hedges are included in trade and other payables on our Consolidated Statements of Financial Condition. See Note 18 for additional information. The RJ Bank Interest Hedges are transacted through an exchange. The nature of the agreement with the clearing member exchange includes terms that are similar to a master netting agreement. We are over-collateralized since the actual amount of cash and securities deposited with the exchange for these derivative contracts is $42 million and $15 million as of September 30, 2016 , and 2015 , respectively. These deposits are included in deposits with clearing organizations on our Consolidated Statements of Financial Condition. (9) This derivative liability arose from our acquisition of Alex. Brown. See the discussion of the circumstances giving rise to this liability in Note 3 . As of September 30, 2016 , we hold 900,000 DB shares with a fair value of $12 million as an economic hedge against the DBRSUs obligation. See additional discussion of the DBRSUs in Note 24 . |
Collateral | The table below presents financial instruments at fair value, that we received as collateral, are not included on our Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were used to deliver or repledge, to satisfy one of our purposes described above: September 30, 2016 2015 (in thousands) Collateral we received that is available to be delivered or repledged $ 2,925,335 $ 2,308,277 Collateral that we delivered or repledged $ 1,536,393 (1) $ 1,122,540 (2) (1) The collateral delivered or repledged as of September 30, 2016 , includes client margin securities which we pledged with a clearing organization in the amount of $389 million which were applied against our requirement of $203 million . (2) The collateral delivered or repledged as of September 30, 2015 , includes client margin securities which we pledged with a clearing organization in the amount of $241 million which were applied against our requirement of $148 million . |
Encumbered assets | The table below presents information about the fair value of our assets that have been pledged for one of the purposes described above: September 30, 2016 2015 (in thousands) Financial instruments owned, at fair value, pledged to counterparties that: Had the right to deliver or repledge $ 587,369 $ 424,668 Did not have the right to deliver or repledge $ 25,200 (1) $ 94,006 (2) (1) Assets delivered or repledged as of September 30, 2016 , includes securities which we pledged with a clearing organization in the amount of $19 million which were applied against our requirement of $203 million (client margin securities we pledged which are described in the preceding table constitute the remainder of the assets pledged to meet the requirement). (2) Assets delivered or repledged as of September 30, 2015 , includes securities which we pledged with a clearing organization in the amount of $30 million which were applied against our requirement of $148 million (client margin securities we pledged which are described in the preceding table constitute the remainder of the assets pledged to meet the requirement). |
Transfer of certain financial assets accounted for as secured borrowings | The following table presents the remaining contractual maturity of securities under agreements to repurchase and securities lending transactions accounted for as secured borrowings: Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total As of September 30, 2016: (in thousands) Repurchase agreements Government and agency obligations $ 92,804 $ 6,252 $ — $ — $ 99,056 Agency MBS and CMOs 92,422 1,751 — — 94,173 Total Repurchase Agreements 185,226 8,003 — — 193,229 Securities lending Equity securities 677,761 — — — 677,761 Total $ 862,987 $ 8,003 $ — $ — $ 870,990 Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote $ 870,990 Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote $ — As of September 30, 2015: Repurchase agreements Government and agency obligations $ 211,594 $ 5,250 $ — $ — $ 216,844 Agency MBS and CMOs 112,941 2,751 — — 115,692 Total Repurchase Agreements 324,535 8,001 — — 332,536 Securities lending Equity securities 478,573 — — — 478,573 Total $ 803,108 $ 8,001 $ — $ — $ 811,109 Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote $ 811,109 Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Allocation of Income Taxes | Total income taxes are allocated as follows: Year ended September 30, 2016 2015 2014 (in thousands) Recorded in: Income including noncontrolling interests $ 271,293 $ 296,034 $ 267,797 Equity, arising from compensation expense for tax purposes which is (in excess of) less than amounts recognized for financial reporting purposes (35,121 ) 8,115 (7,437 ) Equity, arising from cumulative currency translation adjustments and net investment hedges recorded through other comprehensive income (loss) (“OCI”) (3,525 ) 31,078 15,142 Equity, arising from available for sale securities recorded through OCI (3,295 ) (2,246 ) 3,694 Equity, arising from cash flow hedges recorded through OCI (7,252 ) (2,850 ) — Total $ 222,100 $ 330,131 $ 279,196 |
Provision (Benefit) for Income Taxes | Our provision (benefit) for income taxes consists of the following: Year ended September 30, 2016 2015 2014 (in thousands) Current: Federal $ 287,350 $ 266,359 $ 260,504 State and local 32,101 48,130 29,904 Foreign 10,640 5,007 12,560 330,091 319,496 302,968 Deferred: Federal (51,383 ) (20,567 ) (35,262 ) State and local (6,267 ) (5,127 ) (410 ) Foreign (1,148 ) 2,232 501 (58,798 ) (23,462 ) (35,171 ) Total provision for income tax $ 271,293 $ 296,034 $ 267,797 |
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, 2016 2015 2014 Amount % Amount % Amount % ($ in thousands) Provision calculated at statutory rate $ 280,225 35 % $ 279,361 35 % $ 261,816 35 % State income tax, net of federal benefit 13,864 1.7 % 29,224 3.6 % 18,826 2.5 % Tax-exempt interest income (6,969 ) (0.9 )% (4,335 ) (0.5 )% (2,146 ) (0.3 )% (Income) losses associated with company-owned life insurance which are not (subject to tax) tax deductible (9,098 ) (1.1 )% 3,040 0.4 % (6,365 ) (0.8 )% General business tax credits (8,559 ) (1.0 )% (7,166 ) (0.9 )% (3,910 ) (0.5 )% Other, net 1,830 0.2 % (4,090 ) (0.5 )% (424 ) (0.1 )% Total provision for income tax $ 271,293 33.9 % $ 296,034 37.1 % $ 267,797 35.8 % |
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, 2016 2015 2014 (in thousands) U.S. $ 765,420 $ 782,146 $ 705,878 Foreign 35,222 16,028 42,167 Income excluding noncontrolling interest and before provision for income taxes $ 800,642 $ 798,174 $ 748,045 |
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, 2016 2015 (in thousands) Deferred tax assets: Deferred compensation $ 192,397 $ 150,949 Allowances for loan losses and reserves for unfunded commitments 78,552 68,445 Unrealized loss associated with foreign currency translations 22,184 22,892 Unrealized loss associated with available for sale securities 4,314 7,764 Accrued expenses 44,419 40,075 Other 24,897 28,575 Total gross deferred tax assets 366,763 318,700 Less: valuation allowance (9 ) (9 ) Total deferred tax assets 366,754 318,691 Deferred tax liabilities: Partnership investments (8,518 ) (13,476 ) Goodwill and other intangibles (26,384 ) (23,967 ) Undistributed earnings of foreign subsidiaries (9,636 ) (12,592 ) Other (192 ) (1,757 ) Total deferred tax liabilities (44,730 ) (51,792 ) Net deferred tax assets $ 322,024 $ 266,899 |
Aggregate Changes in Liability for Unrecognized Tax Benefits | The aggregate changes in the balances for uncertain tax positions are as follows: Year ended September 30, 2016 2015 2014 (in thousands) Balance for uncertain tax positions at beginning of year $ 22,454 $ 15,804 $ 13,663 Increases for tax positions related to the current year 6,496 4,954 3,228 Increases for tax positions related to prior years (1) 1,284 3,466 2,455 Decreases for tax positions related to prior years (1,592 ) (204 ) (1,642 ) Decreases due to lapsed statute of limitations (1,447 ) (1,566 ) (1,218 ) Decreases related to settlements (5,022 ) — (682 ) Balance for uncertain tax positions at end of year $ 22,173 $ 22,454 $ 15,804 (1) The increases are primarily due to tax positions taken in previously filed tax returns with certain states. We continue to evaluate these positions and intend to contest any proposed adjustments made by taxing authorities. |
OTHER COMPREHENSIVE (LOSS) IN56
OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Activity in Other Comprehensive Income (Loss) and Related Tax Effects | The activity in other comprehensive (loss) income net of the related tax effects are as follows: Year ended September 30, 2016 2015 2014 (in thousands) Unrealized (losses) gains on available for sale securities $ (5,576 ) $ (3,325 ) $ 6,021 Unrealized gains (losses) on currency translations net of the impact of net investment hedges 2,179 (30,640 ) (18,635 ) Unrealized loss on cash flow hedges (11,833 ) (4,650 ) — Net other comprehensive loss $ (15,230 ) $ (38,615 ) $ (12,614 ) |
Components of Accumulated Other Comprehensive Income, Net of Income Taxes | The following table presents the changes, and the related tax effects, of each component of accumulated other comprehensive (loss) income for the fiscal years ended September 30, 2016 and 2015 (in thousands): Net investment hedges (1) Currency translations Sub-total: net investment hedges and currency translations Available for sale securities Cash flow hedges (2) Total Year ended September 30, 2016 Accumulated other comprehensive income (loss) as of the beginning of the year $ 93,203 $ (130,476 ) $ (37,273 ) $ 1,420 $ (4,650 ) $ (40,503 ) Other comprehensive (loss) income before reclassifications and taxes (10,743 ) 9,397 (1,346 ) (9,231 ) (25,535 ) (36,112 ) Amounts reclassified from accumulated other comprehensive income (loss), before tax — — — 360 6,450 6,810 Pre-tax other comprehensive (loss) income (10,743 ) 9,397 (1,346 ) (8,871 ) (19,085 ) (29,302 ) Income tax effect 4,022 (497 ) 3,525 3,295 7,252 14,072 Net other comprehensive (loss) income for the year, net of tax (6,721 ) 8,900 2,179 (5,576 ) (11,833 ) (15,230 ) Accumulated other comprehensive income (loss) as of September 30, 2016 $ 86,482 $ (121,576 ) $ (35,094 ) $ (4,156 ) $ (16,483 ) $ (55,733 ) Year ended September 30, 2015 Accumulated other comprehensive income (loss) as of the beginning of the year $ 32,872 $ (39,505 ) $ (6,633 ) $ 4,745 $ — $ (1,888 ) Other comprehensive income (loss) before reclassifications and taxes 96,499 (96,061 ) 438 2,863 (9,407 ) (6,106 ) Amounts reclassified from accumulated other comprehensive loss, before tax — — — (8,434 ) 1,907 (6,527 ) Pre-tax other comprehensive income (loss) 96,499 (96,061 ) 438 (5,571 ) (7,500 ) (12,633 ) Income tax effect (36,168 ) 5,090 (31,078 ) 2,246 2,850 (25,982 ) Net other comprehensive income (loss) for the year, net of tax 60,331 (90,971 ) (30,640 ) (3,325 ) (4,650 ) (38,615 ) Accumulated other comprehensive income (loss) as of September 30, 2015 $ 93,203 $ (130,476 ) $ (37,273 ) $ 1,420 $ (4,650 ) $ (40,503 ) (1) Comprised of forward foreign exchange derivatives associated with hedges of RJ Bank’s foreign currency exposure due to its non-U.S. dollar net investments (see Note 18 for additional information on these derivatives). (2) Represents RJ Bank Interest Hedges (see Note 18 for additional information on these derivatives). |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive income (loss), and the related tax effects, during the years ended September 30, 2016 and 2015 : Accumulated other comprehensive income (loss) components: Increase (decrease) in amounts reclassified from accumulated other comprehensive (loss) income Affected line items in income statement (in thousands) Year ended September 30, 2016 Available for sale securities: (1) Auction rate securities (2) $ 87 Other revenue RJ Bank available for sale securities (3) 273 Other revenue RJ Bank Interest Hedges (4) 6,450 Interest expense 6,810 Total before tax Income tax effect (2,590 ) Provision for income taxes Total reclassifications for the period $ 4,220 Net of tax Year ended September 30, 2015 Available for sale securities: (1) Auction rate securities (2) $ (8,976 ) Other revenue RJ Bank available for sale securities (3) 542 Other revenue RJ Bank Interest Hedges (4) 1,907 Interest expense (6,527 ) Total before tax Income tax effect 2,526 Provision for income taxes Total reclassifications for the period $ (4,001 ) Net of tax (1) See Note 7 for additional information regarding the available for sale securities, and Note 5 for additional fair value information regarding these securities. (2) Other revenues in our Consolidated Statements of Income and Comprehensive Income include realized gains on the sale of ARS (see Note 7 for further information). The amounts presented in the table represent the reversal out of AOCI associated with such ARS’ sold. The net of such realized gain and this reversal out of AOCI represents the net effect of such redemptions and sales activities on OCI for each respective fiscal year, on a pre-tax basis. (3) Other revenues in our Consolidated Statements of Income and Comprehensive Income include realized gains or losses on the sale of certain available for sale securities held by RJ Bank (see Note 7 for further information). The amounts presented in the table represent the reversal out of AOCI associated with such securities sold. The net of such realized gains or losses and this reversal out of AOCI represents the net effect of such sales activities on OCI for each respective period, on a pre-tax basis. (4) See Note 18 for additional information regarding the RJ Bank Interest Hedges, and Note 5 for additional fair value information regarding these derivatives. |
INTEREST INCOME AND INTEREST 57
INTEREST INCOME AND INTEREST EXPENSE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 2014 (in thousands) Interest income: Margin balances $ 68,712 $ 67,573 $ 68,454 Assets segregated pursuant to regulations and other segregated assets 22,287 13,792 15,441 Bank loans, net of unearned income 487,366 405,578 343,942 Available for sale securities 7,596 5,100 6,560 Trading instruments 19,362 19,450 17,883 Stock loan 8,777 12,036 8,731 Loans to financial advisors 8,207 7,056 6,427 Corporate cash and all other 18,018 12,622 13,448 Total interest income $ 640,325 $ 543,207 $ 480,886 Interest expense: Brokerage client liabilities $ 2,084 $ 940 $ 1,269 Retail bank deposits 10,218 (1) 8,382 7,959 Trading instruments sold but not yet purchased 5,035 4,503 4,327 Stock borrow 3,174 5,237 2,869 Borrowed funds 12,957 6,079 3,939 Senior notes 78,533 76,088 76,038 Interest expense of consolidated VIEs 1,021 1,879 2,900 Other 4,055 4,846 4,790 Total interest expense 117,077 107,954 104,091 Net interest income 523,248 435,253 376,795 Subtract: provision for loan losses (28,167 ) (23,570 ) (13,565 ) Net interest income after provision for loan losses $ 495,081 $ 411,683 $ 363,230 (1) The balance for the year ended September 30, 2016 is presented net of interest expense associated with affiliate deposits. The impact of such expense on prior year periods was not significant. |
SHARE-BASED AND OTHER COMPENS58
SHARE-BASED AND OTHER COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Stock Options | |
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 are presented below: Year ended September 30, 2016 2015 2014 (in thousands) Total share-based expense $ 10,114 $ 10,169 $ 9,068 Income tax benefits related to share-based expense $ 769 $ 811 $ 667 |
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 the fiscal years ended September 30, 2016 , 2015 and 2014 : Year ended September 30, 2016 2015 2014 Dividend yield 1.41 % 1.30 % 1.33 % Expected volatility 28.85 % 29.55 % 39.84 % Risk-free interest rate 1.65 % 1.66 % 1.43 % Expected lives (in years) 5.37 5.48 5.50 |
Summary of Option Activity | A summary of option activity for grants to employees for the fiscal year ended September 30, 2016 is presented below: Options for shares Weighted- average exercise price ($) Weighted- average remaining contractual term (years) Aggregate intrinsic value ($) Outstanding at October 1, 2015 4,061,354 $ 41.49 Granted 351,223 $ 56.46 Exercised (625,194 ) $ 29.25 Forfeited (76,910 ) $ 46.42 Outstanding at September 30, 2016 3,710,473 $ 44.88 3.50 $ 49,479,000 Exercisable at September 30, 2016 639,607 $ 31.54 1.35 $ 17,058,000 |
Option Activity, Additional Disclosures | The following stock option activity occurred under the 2012 Plan for grants to employees: Year ended September 30, 2016 2015 2014 (in thousands, except per option amounts) Weighted-average grant date fair value per option $ 13.96 $ 14.36 $ 16.21 Total intrinsic value of stock options exercised $ 16,273 $ 29,574 $ 15,570 Total grant date fair value of stock options vested $ 7,690 $ 10,483 $ 5,004 |
Restricted Stock | |
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 granted to our employees and members of our Board of Directors are presented below: Year ended September 30, 2016 2015 2014 (in thousands) Total share-based expense $ 62,624 $ 57,587 $ 54,666 Income tax benefits related to share-based expense $ 21,960 $ 20,467 $ 19,105 |
Summary of Restricted Stock Activity | The following restricted stock award activity for grants to employees and members of our Board of Directors occurred during the fiscal year ended September 30, 2016 : Shares/Units Weighted- average grant date fair value ($) Non-vested at October 1, 2015 4,684,373 $ 42.29 Granted 1,322,958 $ 56.14 Vested (1,053,903 ) $ 35.20 Forfeited (146,267 ) $ 40.35 Non-vested at September 30, 2016 4,807,161 $ 47.71 |
Restricted Stock | Deutsche WM | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expense and Income Tax Benefits Related to Awards | Subsequent to the AB Closing Date, the net impact of the DBRSUs in our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2016 , including the related income tax effects, is presented below: Year ended September 30, 2016 (in thousands) Amortization of DBRSU prepaid compensation asset $ 355 Change in fair value of derivative liability (gain) (2,457 ) Net gain before tax $ (2,102 ) Income tax expense $ 799 |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Raymond James Financial Inc | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Summary of Minimum Requirements Under Regulatory Framework | To meet requirements for capital adequacy purposes or to be categorized as “well capitalized,” RJF must maintain minimum Common equity Tier 1, Tier 1 risk-based, Total risk-based, and Tier 1 leverage amounts and ratios as set forth in the table below. Actual Requirement for capital adequacy purposes To be well capitalized under regulatory provisions Amount Ratio Amount Ratio Amount Ratio ($ in thousands) RJF as of September 30, 2016: Common equity Tier 1 capital $ 4,421,956 20.6 % $ 966,341 4.5 % $ 1,395,825 6.5 % Tier 1 capital $ 4,421,956 20.6 % $ 1,288,454 6.0 % $ 1,717,939 8.0 % Total capital $ 4,636,009 21.6 % $ 1,717,939 8.0 % $ 2,147,424 10.0 % Tier 1 leverage $ 4,421,956 15.0 % $ 1,177,840 4.0 % $ 1,472,300 5.0 % RJF as of September 30, 2015: Common equity Tier 1 capital $ 4,101,353 22.1 % $ 834,677 4.5 % $ 1,205,644 6.5 % Tier 1 capital $ 4,101,353 22.1 % $ 1,112,902 6.0 % $ 1,483,869 8.0 % Total capital $ 4,290,431 23.1 % $ 1,483,869 8.0 % $ 1,854,837 10.0 % Tier 1 leverage $ 4,101,353 16.1 % $ 1,018,859 4.0 % $ 1,273,574 5.0 % |
RJ Bank | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Summary of Minimum Requirements Under Regulatory Framework | To meet the requirements for capital adequacy or to be categorized as “well capitalized,” RJ Bank must maintain Common equity Tier 1, Tier 1 risk-based, Total risk-based, and Tier 1 leverage amounts and ratios as set forth in the table below. Actual Requirement for capital adequacy purposes To be well capitalized under regulatory provisions Amount Ratio Amount Ratio Amount Ratio ($ in thousands) RJ Bank as of September 30, 2016: Common equity Tier 1 capital $ 1,675,890 12.7 % $ 592,864 4.5 % $ 856,360 6.5 % Tier 1 capital $ 1,675,890 12.7 % $ 790,486 6.0 % $ 1,053,981 8.0 % Total capital $ 1,841,112 14.0 % $ 1,053,981 8.0 % $ 1,317,476 10.0 % Tier 1 leverage $ 1,675,890 9.9 % $ 675,939 4.0 % $ 844,924 5.0 % RJ Bank as of September 30, 2015: Common equity Tier 1 capital $ 1,525,942 13.0 % $ 526,577 4.5 % $ 760,611 6.5 % Tier 1 capital $ 1,525,942 13.0 % $ 702,103 6.0 % $ 936,137 8.0 % Total capital $ 1,672,577 14.3 % $ 936,137 8.0 % $ 1,170,171 10.0 % Tier 1 leverage $ 1,525,942 10.9 % $ 558,829 4.0 % $ 698,536 5.0 % |
Raymond James and Associates Inc | |
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, 2016 2015 ($ in thousands) Raymond James & Associates, Inc.: (Alternative Method elected) Net capital as a percent of aggregate debit items 19.61 % 20.85 % Net capital $ 512,594 $ 411,222 Less: required net capital (52,287 ) (39,452 ) Excess net capital $ 460,307 $ 371,770 |
Raymond James Financial Services Inc | |
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, 2016 2015 (in thousands) Raymond James Financial Services, Inc.: (Alternative Method elected) Net capital $ 27,013 $ 25,828 Less: required net capital (250 ) (250 ) Excess net capital $ 26,763 $ 25,578 |
Raymond James Ltd | |
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 currency): As of September 30, 2016 2015 (in thousands) Raymond James Ltd.: Risk adjusted capital before minimum $ 77,110 $ 127,097 Less: required minimum capital (250 ) (250 ) Risk adjusted capital $ 76,860 $ 126,847 |
FINANCIAL INSTRUMENTS WITH OF60
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | |
Summary of Commitments to Extend Credit and Other Credit-Related Off-Balance Sheet Financial Instruments Outstanding | RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding are as follows: As of September 30, 2016 2015 (in thousands) Standby letters of credit $ 29,686 $ 60,925 Open end consumer lines of credit (primarily SBL) $ 3,616,933 $ 2,531,690 Commercial lines of credit $ 1,430,630 $ 1,419,746 Unfunded loan commitments $ 354,556 $ 322,419 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 2014 (in thousands, except per share amounts) Income for basic earnings per common share: Net income attributable to RJF $ 529,350 $ 502,140 $ 480,248 Less allocation of earnings and dividends to participating securities (1) (1,256 ) (1,610 ) (3,007 ) Net income attributable to RJF common shareholders $ 528,094 $ 500,530 $ 477,241 Income for diluted earnings per common share: Net income attributable to RJF $ 529,350 $ 502,140 $ 480,248 Less allocation of earnings and dividends to participating securities (1) (1,236 ) (1,580 ) (2,946 ) Net income attributable to RJF common shareholders $ 528,114 $ 500,560 $ 477,302 Common shares: Average common shares in basic computation 141,773 142,548 139,935 Dilutive effect of outstanding stock options and certain restricted stock units 2,740 3,391 3,654 Average common shares used in diluted computation 144,513 145,939 143,589 Earnings per common share: Basic $ 3.72 $ 3.51 $ 3.41 Diluted $ 3.65 $ 3.43 $ 3.32 Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive 3,255 2,849 1,503 (1) Represents dividends paid during the year 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 346 thousand , 464 thousand and 887 thousand for the years ended September 30, 2016 , 2015 and 2014 , respectively. Dividends paid to participating securities amounted to $236 thousand , $300 thousand and $500 thousand for the years ended September 30, 2016 , 2015 , and 2014 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, 2016 2015 2014 Dividends per common share - declared $ 0.80 $ 0.72 $ 0.64 Dividends per common share - paid $ 0.78 $ 0.70 $ 0.62 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 2015 2014 (in thousands) Revenues: Private Client Group $ 3,626,718 $ 3,519,558 $ 3,289,503 Capital Markets 1,016,375 975,064 968,635 Asset Management 404,421 392,378 369,690 RJ Bank 517,243 425,988 360,317 Other 46,291 66,967 42,203 Intersegment eliminations (90,704 ) (71,791 ) (64,888 ) Total revenues (1) $ 5,520,344 $ 5,308,164 $ 4,965,460 Income (loss) excluding noncontrolling interests and before provision for income taxes: Private Client Group $ 340,564 $ 342,243 $ 330,278 Capital Markets 139,173 107,009 130,565 Asset Management 132,158 135,050 128,286 RJ Bank 337,296 278,721 242,834 Other (148,548 ) (64,849 ) (83,918 ) Pre-tax income excluding noncontrolling interests 800,643 798,174 748,045 Add: net loss attributable to noncontrolling interests (23,272 ) (21,462 ) (32,097 ) Income including noncontrolling interests and before provision for income taxes $ 777,371 $ 776,712 $ 715,948 (1) No individual client accounted for more than ten percent of total revenues in any of the years presented. Year ended September 30, 2016 2015 2014 (in thousands) Net interest income (expense): Private Client Group $ 97,042 $ 88,842 $ 89,527 Capital Markets 8,339 7,634 5,326 Asset Management 183 127 92 RJ Bank 478,690 403,578 346,757 Other (61,006 ) (64,928 ) (64,907 ) Net interest income $ 523,248 $ 435,253 $ 376,795 The following table presents our total assets on a segment basis: September 30, 2016 2015 (in thousands) Total assets: Private Client Group (1) $ 10,317,681 $ 6,870,379 Capital Markets (2) 3,064,076 2,780,733 Asset Management 133,190 187,378 RJ Bank 16,613,391 14,191,566 Other 1,465,395 2,437,976 Total $ 31,593,733 $ 26,468,032 (1) Includes $275.5 million and $186.7 million of goodwill at September 30, 2016 and 2015 , respectively. (2) Includes $132.6 million and $120.9 million of goodwill at September 30, 2016 and 2015 , 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, 2016 2015 2014 (in thousands) Revenues: United States $ 5,118,760 $ 4,911,304 $ 4,512,808 Canada 278,652 279,200 323,038 Europe 85,718 85,289 95,865 Other 37,214 32,371 33,749 Total $ 5,520,344 $ 5,308,164 $ 4,965,460 Pre-tax income (loss) excluding noncontrolling interests: United States $ 778,351 $ 784,517 $ 706,366 Canada 20,243 17,770 37,947 Europe (3,791 ) (6,852 ) (1,546 ) Other 5,840 2,739 5,278 Total $ 800,643 $ 798,174 $ 748,045 Our total assets, classified by major geographic area in which they are held, are presented below: September 30, 2016 2015 (in thousands) Total assets: United States (1) $ 29,218,939 $ 24,531,993 Canada (2) 2,275,056 1,814,178 Europe 61,067 (3) 36,669 Other 38,671 85,192 Total $ 31,593,733 $ 26,468,032 (1) Includes $356.3 million and $274.6 million of goodwill at September 30, 2016 and 2015 , respectively. (2) Includes $42.7 million and $33 million of goodwill at September 30, 2016 and 2015 , respectively. (3) Includes $9.1 million of goodwill at September 30, 2016 . |
CONDENSED FINANCIAL INFORMATI63
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statement of Financial Condition | The following table presents the Parent’s statements of financial condition: September 30, 2016 2015 (in thousands) Assets: Cash and cash equivalents (1) $ 371,978 $ 746,042 Intercompany receivables from subsidiaries: Bank subsidiary — 82 Non-bank subsidiaries (2) 1,228,046 853,222 Investments in consolidated subsidiaries: Bank subsidiary 1,658,663 1,519,263 Non-bank subsidiaries 3,118,961 2,378,129 Property and equipment, net 14,891 10,602 Goodwill and identifiable intangible assets, net 31,954 31,954 Other assets 611,667 616,526 Total assets $ 7,036,160 $ 6,155,820 Liabilities and equity: Trade and other $ 81,340 $ 78,945 Intercompany payables to subsidiaries: Bank subsidiary 230 — Non-bank subsidiaries 13,892 129,779 Accrued compensation and benefits 346,015 287,495 Senior notes payable 1,680,587 1,137,570 Total liabilities 2,122,064 1,633,789 Equity 4,914,096 4,522,031 Total liabilities and equity $ 7,036,160 $ 6,155,820 (1) Of the Parent’s total cash and cash equivalents, $350 million and $451 million at September 30, 2016 and 2015 , respectively, is held in a deposit account at RJ Bank. (2) Of the total receivable from non-bank subsidiaries, $457 million and $494 million at September 30, 2016 and 2015 , 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 statements of income: Year ended September 30, 2016 2015 2014 (in thousands) Revenues: Dividends from non-bank subsidiaries $ 248,020 $ 230,853 $ 253,218 Dividends from bank subsidiary 75,000 — 25,000 Interest from subsidiaries 8,999 6,886 5,779 Interest 807 843 2,050 Other 4,654 3,823 1,613 Total revenues 337,480 242,405 287,660 Interest expense (78,089 ) (76,233 ) (76,662 ) Net revenues 259,391 166,172 210,998 Non-interest expenses: Compensation and benefits 54,664 46,758 41,482 Communications and information processing 6,330 5,999 5,036 Occupancy and equipment costs 636 800 892 Business development 18,364 17,581 15,497 Other 9,792 10,365 8,252 Intercompany allocations and charges (40,424 ) (46,898 ) (38,148 ) Total non-interest expenses 49,362 34,605 33,011 Income before income tax benefit and equity in undistributed net income of subsidiaries 210,029 131,567 177,987 Income tax benefit (64,658 ) (42,688 ) (37,170 ) Income before equity in undistributed net income of subsidiaries 274,687 174,255 215,157 Equity in undistributed net income of subsidiaries 254,663 327,885 265,091 Net income $ 529,350 $ 502,140 $ 480,248 |
Condensed Statement of Cash Flows | The following table presents the Parent’s statements of cash flows: Year ended September 30, 2016 2015 2014 (in thousands) Cash flows from operating activities: Net income $ 529,350 $ 502,140 $ 480,248 Adjustments to reconcile net income to net cash provided by operating activities: Gain on investments (11,538 ) (5,586 ) (10,245 ) (Gain) loss on company-owned life insurance (25,642 ) 8,960 (17,989 ) Equity in undistributed net income of subsidiaries (254,663 ) (327,885 ) (265,091 ) Other 73,798 60,634 75,725 Net change in: Intercompany receivables 19,641 (102,866 ) 45,656 Other 97,067 51,442 44,360 Intercompany payables (115,657 ) 20,338 (108,056 ) Trade and other 2,396 (49 ) 12,835 Accrued compensation and benefits 58,520 2,911 7,668 Net cash provided by operating activities 373,272 210,039 265,111 Cash flows from investing activities: (Investments in) distributions received from subsidiaries, net (637,689 ) (9,493 ) 33,973 (Advances to) repayments of advances by subsidiaries, net (394,383 ) (40,120 ) 287,154 Proceeds from sales (purchases) of investments, net 24,609 (4,601 ) 6,347 Purchase of investments in company-owned life insurance, net (49,488 ) (44,917 ) (25,581 ) Net cash (used in) provided by investing activities (1,056,951 ) (99,131 ) 301,893 Cash flows from financing activities: Proceeds from senior note issuances, net of debt issuance costs 792,221 — — Repayment of senior notes payable (250,000 ) — — Exercise of stock options and employee stock purchases 43,331 47,964 33,633 Purchase of treasury stock (162,502 ) (88,542 ) (8,427 ) Dividends on common stock (113,435 ) (103,143 ) (88,102 ) Net cash provided by (used in) financing activities 309,615 (143,721 ) (62,896 ) Net (decrease) increase in cash and cash equivalents (374,064 ) (32,813 ) 504,108 Cash and cash equivalents at beginning of year 746,042 778,855 274,747 Cash and cash equivalents at end of year $ 371,978 $ 746,042 $ 778,855 Supplemental disclosures of cash flow information: Cash paid for interest $ 74,568 $ 76,297 $ 76,661 Cash paid (received) for income taxes, net $ 27,397 $ 32,383 $ (59,552 ) Supplemental disclosures of noncash investing activity: Investments in (distributions from) subsidiaries, net $ 781 $ 507 $ (132,117 ) |
INTRODUCTION AND BASIS OF PRE64
INTRODUCTION AND BASIS OF PRESENTATION (Details) | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent ownership of subsidiaries that are consolidated | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN65
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016USD ($)ratingsubsidiaryindependent_pricing_servicerrisk_factorsegmentinstitutioninvestorcomponentFund | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Revenue Recognition [Abstract] | |||
Total commissions generated by correspondents | $ 49 | $ 40 | $ 40 |
Commissions remitted | $ 47 | 38 | $ 37 |
Available for sale securities [Abstract] | |||
Number of independent pricings servicers | independent_pricing_servicer | 2 | ||
Auction rate securities, rate setting interval, minimum (in days) | 7 days | ||
Auction rate securities, rate setting interval, maximum (in days) | 35 days | ||
Derivative Contracts [Abstract] | |||
Derivative, term of contract | 3 months | ||
Private equity investments [Abstract] | |||
Private equity investments estimated life, minimum (in years) | 1 year | ||
Private equity investments estimated life, maximum (in years) | 9 years | ||
Other investments [Abstract] | |||
Requisite service period | 5 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 | ||
Loans associated with financial advisors no longer affiliated with the entity, net of allowance | $ 13 | 10 | |
Loans associated with financial advisors no longer affiliated with the entity, allowance | $ 5 | $ 4 | |
Bank loans and allowances for losses [Abstract] | |||
Number of loan portfolio segments | segment | 6 | ||
Minimum past due for loans considered nonperforming (or more) | 90 days | ||
Minimum past due for loans placed on nonaccrual status (or more) | 90 days | ||
Period loans maintain current basis to return to accrual status (in months) | 6 months | ||
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 | component | 3 | ||
Number of aspects of risk factors analyzed | risk_factor | 2 | ||
Number of ratings used to derive final loan grades and allowance percentages | rating | 2 | ||
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 (or more) | institution | 3 | ||
Minimum past due for residential 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 (or more) | investor | 1 | ||
Number of guaranteed tax credit funds | Fund | 1 | ||
Number of general types of non-guaranteed tax credit funds | Fund | 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 | subsidiary | 1 | ||
New market credit funds [Abstract] | |||
Period of new market tax credit fund (in years) | 7 years | ||
Number of investor members in new market tax credit | investor | 1 | ||
Managed Funds | |||
New market credit funds [Abstract] | |||
Number of subsidiaries that are a general partner in various real estate activities | subsidiary | 1 |
SUMMARY OF SIGNIFICANT ACCOUN66
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Minimum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 2 years |
Minimum | Furniture, fixtures, and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 3 years |
Minimum | Buildings, building components, building improvements and land improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 10 years |
Maximum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 10 years |
Maximum | Furniture, fixtures, and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 5 years |
Maximum | Buildings, building components, building improvements and land improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 31 years |
ACQUISITIONS, Schedule of Acqui
ACQUISITIONS, Schedule of Acquisitions (Details) $ in Millions | Sep. 06, 2016USD ($)financial_advisor | Aug. 31, 2016USD ($)financial_advisor | Jun. 01, 2016 | Sep. 30, 2016USD ($) | Apr. 30, 2015USD ($) |
Deutsche WM | |||||
Business Acquisition [Line Items] | |||||
Number of financial advisors to be acquired | financial_advisor | 190 | ||||
Client assets to be acquired | $ 46,000 | ||||
Payments to acquire loans | $ 233 | ||||
Loans associated with financial advisors, maturity period | 7 years | ||||
3Macs | |||||
Business Acquisition [Line Items] | |||||
Number of financial advisors to be acquired | financial_advisor | 70 | ||||
Client assets to be acquired | $ 6,000 | ||||
Payments to acquire loans | $ 13 | ||||
Loans associated with financial advisors, maturity period | 5 years | ||||
Cougar Global Investments Limited | |||||
Business Acquisition [Line Items] | |||||
Assets under advisement (more than) | $ 1,000 | ||||
Prepaid Compensation Asset | 3Macs | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration, asset | $ 24.7 | ||||
Contingent consideration, prepaid asset amortization period | 5 years | ||||
Minimum | Prepaid Compensation Asset | 3Macs | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration, employment period | 3 years | ||||
Maximum | Prepaid Compensation Asset | 3Macs | |||||
Business Acquisition [Line Items] | |||||
Contingent consideration, employment period | 5 years |
ACQUISITIONS, Acquisition Expen
ACQUISITIONS, Acquisition Expenses (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Business Acquisition [Line Items] | |
Business combination, separately recognized transactions, expenses and losses recognized | $ 40,706 |
Information systems integration costs | |
Business Acquisition [Line Items] | |
Business combination, separately recognized transactions, expenses and losses recognized | 21,752 |
Legal and regulatory | |
Business Acquisition [Line Items] | |
Business combination, separately recognized transactions, expenses and losses recognized | 8,334 |
Pre-AB Closing Date unrealized loss in the fair value of DB shares purchased to satisfy the DBRSU liability(1) | |
Business Acquisition [Line Items] | |
Business combination, separately recognized transactions, expenses and losses recognized | 4,837 |
Severance | |
Business Acquisition [Line Items] | |
Business combination, separately recognized transactions, expenses and losses recognized | 866 |
Travel and all other | |
Business Acquisition [Line Items] | |
Business combination, separately recognized transactions, expenses and losses recognized | $ 4,917 |
CASH AND CASH EQUIVALENTS, AS69
CASH AND CASH EQUIVALENTS, ASSETS SEGREGATED PURSUANT TO REGULATIONS AND DEPOSITS WITH CLEARING ORGANIZATIONS (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash and cash equivalents: | ||||
Cash in banks | $ 1,649,593 | $ 2,597,568 | ||
Money market fund investments | 859 | 3,438 | ||
Total cash and cash equivalents | 1,650,452 | 2,601,006 | $ 2,199,063 | $ 2,596,616 |
Assets segregated pursuant to federal regulations and other segregated assets | 4,889,584 | 2,905,324 | ||
Deposits with clearing organizations | ||||
Cash and cash equivalents | 215,856 | 177,787 | ||
Government and agency obligations | 29,508 | 29,701 | ||
Total deposits with clearing organizations | 245,364 | 207,488 | ||
Raymond James Financial Inc | ||||
Deposits with clearing organizations | ||||
Amount of cash and cash equivalents either held directly, held in a depository account, or are Invested on behalf of parent and available without restriction | $ 810,000 | $ 1,216,000 |
FAIR VALUE, Recurring and Nonre
FAIR VALUE, Recurring and Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | $ 655,737 | $ 581,837 | |
Net amounts presented in the Statements of Financial Condition | 55,703 | 42,086 | |
Equity securities | 16,029 | 28,344 | |
Other | 4,130 | 7,481 | |
Total trading instruments | 766,805 | 690,551 | |
Available for sale securities | 859,398 | 513,730 | $ 562,289 |
Derivative instruments associated with offsetting matched book positions | 422,196 | 389,457 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 301,721 | 262,162 | |
Derivative liability | 8,835 | 20,239 | |
Equity securities | 18,382 | 3,098 | |
Other securities | 0 | 2,494 | |
Total trading instruments sold but not yet purchased | 328,938 | 287,993 | |
Derivative instruments associated with offsetting matched book positions, at fair value | 422,196 | 389,457 | |
Transfers of Financial Instruments into (out of) Level 1 and 2 [Abstract] | |||
Fair Value of Financial Instruments, Level 1 to Level 2 Transfers | 3,000 | 1,000 | |
Fair Value of Financial Instruments, Level 2 to Level 1 Transfers | 1,000 | 2,000 | |
Adjustments to fair value of nonrecurring fair value measurements [Abstract] | |||
Additional provision for loan losses due to fair value adjustment | 12,000 | 900 | |
Other losses due to fair value adjustment | 100 | 300 | |
Quoted prices in active markets for identical assets (Level 1) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 0 | 0 | |
Significant other observable inputs (Level 2) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 196,109 | 105,199 | |
Significant unobservable inputs (Level 3) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 14,925,802 | 12,799,065 | |
Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 655,737 | 581,837 | |
Netting adjustments | (107,539) | (90,621) | |
Equity securities | 16,029 | 28,344 | |
Brokered certificates of deposit | 35,206 | 30,803 | |
Other | 4,130 | 7,481 | |
Total trading instruments | 766,805 | 690,551 | |
Available for sale securities | 859,398 | 513,730 | |
Other investments | 296,844 | 248,751 | |
Government and agency obligations | 29,508 | 29,701 | |
Total assets at fair value on a recurring basis | 2,462,380 | 1,955,517 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 301,721 | 262,162 | |
Netting adjustments | (142,859) | (88,881) | |
Equity securities | 18,382 | 3,098 | |
Other securities | 2,494 | ||
Total trading instruments sold but not yet purchased | 328,938 | 287,993 | |
Derivative instruments associated with offsetting matched book positions, at fair value | 422,196 | 389,457 | |
Total liabilities at fair value on a recurring basis | 795,641 | 685,053 | |
Private Equity Investments [Abstract] | |||
Private equity investments at fair value | 83,165 | 77,435 | |
Adjustments to fair value of nonrecurring fair value measurements [Abstract] | |||
Other investments with obligations to perform under deferred compensation plan | 77,000 | 106,000 | |
Recurring | Municipal and provincial obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 1,161 | 18,313 | |
Recurring | Corporate obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 31,074 | 33,184 | |
Recurring | Government obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 266,682 | 205,658 | |
Recurring | Agency MBS and CMOs | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 2,804 | 5,007 | |
Recurring | Trade and other payables | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liability | 7,545 | ||
Other liabilities | 67 | 58 | |
Total trade and other payables | 26,738 | 7,603 | |
Recurring | Municipal and provincial obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 274,163 | 206,063 | |
Recurring | Corporate obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 132,885 | 95,317 | |
Recurring | Government and agency obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 49,598 | 115,947 | |
Recurring | Agency MBS and CMOs | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 164,663 | 117,570 | |
Available for sale securities | 682,297 | 302,195 | |
Recurring | Non-agency CMOs and ABS | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 34,428 | 46,940 | |
Recurring | Non-agency CMOs | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 50,519 | 71,369 | |
Recurring | Other securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 1,417 | 1,402 | |
Recurring | ARS – municipals | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 25,147 | 28,015 | |
Recurring | ARS - preferred securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 100,018 | 110,749 | |
Recurring | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Other assets | 2,448 | 4,975 | |
Total other assets | 4,464 | 5,892 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 17,305 | 27,606 | |
Equity securities | 14,529 | 24,859 | |
Brokered certificates of deposit | 0 | 0 | |
Other | 555 | 679 | |
Total trading instruments | 32,389 | 53,144 | |
Available for sale securities | 1,417 | 1,402 | |
Other investments | 296,146 | 230,839 | |
Government and agency obligations | 29,508 | 29,701 | |
Total assets at fair value on a recurring basis | 359,460 | 315,086 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 271,930 | 228,798 | |
Equity securities | 18,382 | 3,098 | |
Other securities | 0 | ||
Total trading instruments sold but not yet purchased | 290,312 | 231,896 | |
Total liabilities at fair value on a recurring basis | 290,312 | 231,896 | |
Private Equity Investments [Abstract] | |||
Private equity investments at fair value | 0 | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Municipal and provincial obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 1,161 | 17,966 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Corporate obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 1,283 | 167 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Government obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 266,682 | 205,658 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Agency MBS and CMOs | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 2,804 | 5,007 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Trade and other payables | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Other liabilities | 0 | 0 | |
Total trade and other payables | 0 | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Municipal and provincial obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 480 | 17,318 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Corporate obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 10,000 | 2,254 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Government and agency obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 6,412 | 7,781 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Agency MBS and CMOs | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 413 | 253 | |
Available for sale securities | 0 | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Non-agency CMOs and ABS | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Non-agency CMOs | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 0 | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Other securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 1,417 | 1,402 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | ARS – municipals | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 0 | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | ARS - preferred securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 0 | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Other assets | 0 | 0 | |
Total other assets | 0 | 0 | |
Recurring | Significant other observable inputs (Level 2) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 638,425 | 554,066 | |
Equity securities | 1,500 | 3,485 | |
Brokered certificates of deposit | 35,206 | 30,803 | |
Other | 3 | 4,816 | |
Total trading instruments | 838,376 | 725,877 | |
Available for sale securities | 732,816 | 373,564 | |
Other investments | 257 | 17,347 | |
Government and agency obligations | 0 | 0 | |
Total assets at fair value on a recurring basis | 1,995,661 | 1,507,162 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 29,791 | 33,364 | |
Equity securities | 0 | 0 | |
Other securities | 2,494 | ||
Total trading instruments sold but not yet purchased | 181,485 | 144,978 | |
Total liabilities at fair value on a recurring basis | 648,121 | 541,980 | |
Private Equity Investments [Abstract] | |||
Private equity investments at fair value | 0 | 0 | |
Recurring | Significant other observable inputs (Level 2) | Municipal and provincial obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 347 | |
Recurring | Significant other observable inputs (Level 2) | Corporate obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 29,791 | 33,017 | |
Recurring | Significant other observable inputs (Level 2) | Government obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Significant other observable inputs (Level 2) | Agency MBS and CMOs | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Significant other observable inputs (Level 2) | Trade and other payables | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Other liabilities | 0 | 0 | |
Total trade and other payables | 26,671 | 7,545 | |
Recurring | Significant other observable inputs (Level 2) | Municipal and provincial obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 273,683 | 188,745 | |
Recurring | Significant other observable inputs (Level 2) | Corporate obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 122,885 | 92,907 | |
Recurring | Significant other observable inputs (Level 2) | Government and agency obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 43,186 | 108,166 | |
Recurring | Significant other observable inputs (Level 2) | Agency MBS and CMOs | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 164,250 | 117,317 | |
Available for sale securities | 682,297 | 302,195 | |
Recurring | Significant other observable inputs (Level 2) | Non-agency CMOs and ABS | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 34,421 | 46,931 | |
Recurring | Significant other observable inputs (Level 2) | Non-agency CMOs | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 50,519 | 71,369 | |
Recurring | Significant other observable inputs (Level 2) | Other securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 0 | 0 | |
Recurring | Significant other observable inputs (Level 2) | ARS – municipals | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 0 | 0 | |
Recurring | Significant other observable inputs (Level 2) | ARS - preferred securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 0 | 0 | |
Recurring | Significant other observable inputs (Level 2) | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Other assets | 0 | 0 | |
Total other assets | 2,016 | 917 | |
Recurring | Significant unobservable inputs (Level 3) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 7 | 165 | |
Equity securities | 0 | 0 | |
Brokered certificates of deposit | 0 | 0 | |
Other | 3,572 | 1,986 | |
Total trading instruments | 3,579 | 2,151 | |
Available for sale securities | 125,165 | 138,764 | |
Other investments | 441 | 565 | |
Government and agency obligations | 0 | 0 | |
Total assets at fair value on a recurring basis | 214,798 | 223,890 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Equity securities | 0 | 0 | |
Other securities | 0 | ||
Total trading instruments sold but not yet purchased | 0 | 0 | |
Total liabilities at fair value on a recurring basis | 67 | 58 | |
Private Equity Investments [Abstract] | |||
Portion of significant private equity investments included in Noncontrolling Interests | 26,000 | 19,000 | |
Portion of private equity investments owned by parent | $ 57,000 | $ 58,000 | |
Weighted-average ownership percentage (in hundredths) | 68.00% | 75.00% | |
Private equity investments fair value disclosure | $ 77,435 | ||
Private equity investments at fair value | $ 83,165 | 77,435 | |
Recurring | Significant unobservable inputs (Level 3) | Municipal and provincial obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | Corporate obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | Government obligations | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | Agency MBS and CMOs | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | Trade and other payables | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Other liabilities | 67 | 58 | |
Total trade and other payables | 67 | 58 | |
Recurring | Significant unobservable inputs (Level 3) | Municipal and provincial obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | Corporate obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 156 | |
Recurring | Significant unobservable inputs (Level 3) | Government and agency obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | Agency MBS and CMOs | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 0 | 0 | |
Available for sale securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | Non-agency CMOs and ABS | |||
Assets, Fair Value Disclosure [Abstract] | |||
Total debt securities | 7 | 9 | |
Recurring | Significant unobservable inputs (Level 3) | Non-agency CMOs | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | Other securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 0 | 0 | |
Recurring | Significant unobservable inputs (Level 3) | ARS – municipals | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 25,147 | 28,015 | |
Recurring | Significant unobservable inputs (Level 3) | ARS - preferred securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available for sale securities | 100,018 | 110,749 | |
Recurring | Significant unobservable inputs (Level 3) | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Other assets | 2,448 | 4,975 | |
Total other assets | 2,448 | 4,975 | |
Nonrecurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 89,305 | 80,246 | |
OREO | 679 | 671 | |
Total assets at fair value on a nonrecurring basis | 89,984 | 80,917 | |
Nonrecurring | Impaired loans | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 71,128 | 65,912 | |
Nonrecurring | Loans held for sale | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 18,177 | 14,334 | |
Nonrecurring | Quoted prices in active markets for identical assets (Level 1) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 0 | 0 | |
OREO | 0 | 0 | |
Total assets at fair value on a nonrecurring basis | 0 | 0 | |
Nonrecurring | Quoted prices in active markets for identical assets (Level 1) | Impaired loans | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 0 | 0 | |
Nonrecurring | Quoted prices in active markets for identical assets (Level 1) | Loans held for sale | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 0 | 0 | |
Nonrecurring | Significant other observable inputs (Level 2) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 41,323 | 42,416 | |
OREO | 679 | 671 | |
Total assets at fair value on a nonrecurring basis | 42,002 | 43,087 | |
Nonrecurring | Significant other observable inputs (Level 2) | Impaired loans | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 23,146 | 28,082 | |
Nonrecurring | Significant other observable inputs (Level 2) | Loans held for sale | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 18,177 | 14,334 | |
Nonrecurring | Significant unobservable inputs (Level 3) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 47,982 | 37,830 | |
OREO | 0 | 0 | |
Total assets at fair value on a nonrecurring basis | 47,982 | 37,830 | |
Nonrecurring | Significant unobservable inputs (Level 3) | Impaired loans | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 47,982 | 37,830 | |
Nonrecurring | Significant unobservable inputs (Level 3) | Loans held for sale | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank loans, net | 0 | 0 | |
Interest rate contract | Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Netting adjustments | (107,539) | (90,621) | |
Net amounts presented in the Statements of Financial Condition | 55,703 | 42,086 | |
Derivative instruments associated with offsetting matched book positions | 422,196 | 389,457 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Netting adjustments | (142,859) | (88,881) | |
Derivative liability | 8,835 | 20,239 | |
Interest rate contract | Recurring | Trade and other payables | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liability | 26,671 | ||
Interest rate contract | Recurring | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Net amounts presented in the Statements of Financial Condition | 917 | ||
Interest rate contract | Recurring | Quoted prices in active markets for identical assets (Level 1) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative contracts asset, gross | 0 | 0 | |
Derivative instruments associated with offsetting matched book positions | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | 0 | 0 | |
Derivative instruments associated with offsetting matched book positions, at fair value | 0 | 0 | |
Interest rate contract | Recurring | Quoted prices in active markets for identical assets (Level 1) | Trade and other payables | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | 0 | 0 | |
Interest rate contract | Recurring | Significant other observable inputs (Level 2) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative contracts asset, gross | 163,242 | 132,707 | |
Derivative instruments associated with offsetting matched book positions | 422,196 | 389,457 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | 151,694 | 109,120 | |
Derivative instruments associated with offsetting matched book positions, at fair value | 422,196 | 389,457 | |
Interest rate contract | Recurring | Significant other observable inputs (Level 2) | Trade and other payables | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | 26,671 | 7,545 | |
Interest rate contract | Recurring | Significant unobservable inputs (Level 3) | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative contracts asset, gross | 0 | 0 | |
Derivative instruments associated with offsetting matched book positions | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | 0 | 0 | |
Derivative instruments associated with offsetting matched book positions, at fair value | 0 | 0 | |
Interest rate contract | Recurring | Significant unobservable inputs (Level 3) | Trade and other payables | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | 0 | 0 | |
Forward foreign exchange contracts | Recurring | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Net amounts presented in the Statements of Financial Condition | 2,016 | ||
Forward foreign exchange contracts | Recurring | Quoted prices in active markets for identical assets (Level 1) | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative contracts asset, gross | 0 | 0 | |
Forward foreign exchange contracts | Recurring | Significant other observable inputs (Level 2) | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative contracts asset, gross | 2,016 | 917 | |
Forward foreign exchange contracts | Recurring | Significant unobservable inputs (Level 3) | Other assets | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative contracts asset, gross | 0 | $ 0 | |
Deutsche bank restricted stock derivative | Recurring | |||
Adjustments to fair value of nonrecurring fair value measurements [Abstract] | |||
Other investments, share based compensation economic hedge | 12,000 | ||
Deutsche bank restricted stock derivative | Recurring | Accrued compensation, commissions and benefits: | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative liability | 17,769 | ||
Deutsche bank restricted stock derivative | Recurring | Quoted prices in active markets for identical assets (Level 1) | Accrued compensation, commissions and benefits: | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | 0 | ||
Deutsche bank restricted stock derivative | Recurring | Significant other observable inputs (Level 2) | Accrued compensation, commissions and benefits: | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | 17,769 | ||
Deutsche bank restricted stock derivative | Recurring | Significant unobservable inputs (Level 3) | Accrued compensation, commissions and benefits: | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative contracts liability, gross | $ 0 |
FAIR VALUE, Level 3 Financial A
FAIR VALUE, Level 3 Financial Assets and Liabilities, Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Percentage of instruments measured at fair value on a recurring basis [Abstract] | |||
Instruments measured at fair value, percentage of assets (in hundredths) | 8.00% | 7.00% | |
Instruments measured at fair value, percentage of liabilities (in hundredths) | 3.00% | 3.00% | |
Instruments measured at fair value, Level 3, percentage of assets (in hundredths) | 9.00% | 11.00% | |
Percentage change of level 3 financial instruments from prior year period | (3.00%) | ||
Payables-trade and other | Other liabilities | |||
Changes in Level 3 recurring fair value measurements, liabilities [Roll Forward] | |||
Fair value, financial liabilities at beginning of period | $ (58) | $ (58) | $ (60) |
Total gains (losses) for the year: | |||
Included in earnings | (9) | 0 | 2 |
Included in other comprehensive income | 0 | 0 | 0 |
Purchases and contributions | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Redemptions by issuer | 0 | 0 | 0 |
Distributions | 0 | 0 | 0 |
Transfers: | |||
Into Level 3 | 0 | 0 | 0 |
Out of Level 3 | 0 | 0 | 0 |
Fair value, financial liabilities at end of period | (67) | (58) | (58) |
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 | Municipal and provincial obligations | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 156 | ||
Transfers: | |||
Fair value at end of period | 156 | ||
Trading instruments | Corporate obligations | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 156 | 0 | |
Total gains (losses) for the year: | |||
Included in earnings | (137) | (40) | |
Included in other comprehensive income | 0 | 0 | |
Purchases and contributions | 75 | 33 | |
Sales | (94) | (31) | |
Redemptions by issuer | 0 | 0 | |
Distributions | 0 | 0 | |
Transfers: | |||
Into Level 3 | 0 | 209 | |
Out of Level 3 | 0 | (15) | |
Fair value at end of period | 0 | 156 | 0 |
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 | (40) | |
Trading instruments | Non-agency CMOs and ABS | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 9 | 11 | 14 |
Total gains (losses) for the year: | |||
Included in earnings | 0 | 1 | (1) |
Included in other comprehensive income | 0 | 0 | 0 |
Purchases and contributions | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Redemptions by issuer | 0 | 0 | 0 |
Distributions | (2) | (3) | (2) |
Transfers: | |||
Into Level 3 | 0 | 0 | 0 |
Out of Level 3 | 0 | 0 | 0 |
Fair value at end of period | 7 | 9 | 11 |
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 | 1 | 20 |
Trading instruments | Equity securities | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 0 | 44 | 35 |
Total gains (losses) for the year: | |||
Included in earnings | 5 | 6 | |
Included in other comprehensive income | 0 | 0 | |
Purchases and contributions | 20 | 103 | |
Sales | 0 | (98) | |
Redemptions by issuer | 0 | 0 | |
Distributions | 0 | 0 | |
Transfers: | |||
Into Level 3 | 0 | 0 | |
Out of Level 3 | (69) | (2) | |
Fair value at end of period | 0 | 44 | |
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 | 6 | |
Trading instruments | Other | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 1,986 | 2,309 | 3,956 |
Total gains (losses) for the year: | |||
Included in earnings | (521) | (180) | (371) |
Included in other comprehensive income | 0 | 0 | 0 |
Purchases and contributions | 61,887 | 34,478 | 18,628 |
Sales | (59,780) | (34,621) | (19,904) |
Redemptions by issuer | 0 | 0 | 0 |
Distributions | 0 | 0 | 0 |
Transfers: | |||
Into Level 3 | 0 | 0 | 0 |
Out of Level 3 | 0 | 0 | 0 |
Fair value at end of period | 3,572 | 1,986 | 2,309 |
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 | (225) | 11 | (7) |
Available for sale securities | Non-agency CMOs | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 0 | 78 | |
Total gains (losses) for the year: | |||
Included in earnings | (27) | ||
Included in other comprehensive income | 22 | ||
Purchases and contributions | 0 | ||
Sales | (38) | ||
Redemptions by issuer | 0 | ||
Distributions | (35) | ||
Transfers: | |||
Into Level 3 | 0 | ||
Out of Level 3 | 0 | ||
Fair value at end of period | 0 | ||
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 | ||
Available for sale securities | ARS – municipals | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 28,015 | 86,696 | 130,934 |
Total gains (losses) for the year: | |||
Included in earnings | 133 | 11,042 | 7,046 |
Included in other comprehensive income | (1,393) | (6,112) | (403) |
Purchases and contributions | 0 | 0 | 0 |
Sales | (1,583) | (63,611) | (23,355) |
Redemptions by issuer | (25) | 0 | (27,526) |
Distributions | 0 | 0 | 0 |
Transfers: | |||
Into Level 3 | 0 | 0 | 0 |
Out of Level 3 | 0 | 0 | 0 |
Fair value at end of period | 25,147 | 28,015 | 86,696 |
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 | (1,348) | (910) | (403) |
Available for sale securities | ARS - preferred securities | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 110,749 | 114,039 | 110,784 |
Total gains (losses) for the year: | |||
Included in earnings | 136 | 25 | 44 |
Included in other comprehensive income | (9,656) | (3,065) | 3,536 |
Purchases and contributions | 0 | 0 | 0 |
Sales | (1,211) | 0 | 0 |
Redemptions by issuer | 0 | (250) | (325) |
Distributions | 0 | 0 | 0 |
Transfers: | |||
Into Level 3 | 0 | 0 | 0 |
Out of Level 3 | 0 | 0 | 0 |
Fair value at end of period | 100,018 | 110,749 | 114,039 |
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 | (9,574) | (3,065) | 3,536 |
Private equity, other investments, other receivables and other assets | Private equity investments not measured at NAV(1) | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 77,435 | 75,980 | 82,390 |
Total gains (losses) for the year: | |||
Included in earnings | 11,517 | 8,723 | 4,143 |
Included in other comprehensive income | 0 | 0 | 0 |
Purchases and contributions | 11,271 | 1,226 | 975 |
Sales | (18) | (4,307) | (7,076) |
Redemptions by issuer | 0 | 0 | 0 |
Distributions | (17,040) | (4,187) | (11,741) |
Transfers: | |||
Into Level 3 | 0 | 0 | 7,289 |
Out of Level 3 | 0 | 0 | 0 |
Fair value at end of period | 83,165 | 77,435 | 75,980 |
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 | 11,517 | 7,252 | 1,235 |
Valuation adjustments of certain private equity investments [Abstract] | |||
Share of the net valuation adjustments gain | 3,000 | 7,000 | |
Noncontrolling interests' share of the net valuation adjustments gain | 9,000 | 2,000 | |
Private equity, other investments, other receivables and other assets | Other investments | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 565 | 1,731 | 4,607 |
Total gains (losses) for the year: | |||
Included in earnings | 9 | 57 | 174 |
Included in other comprehensive income | 0 | 0 | 0 |
Purchases and contributions | 8 | 0 | 63 |
Sales | 0 | 0 | (2,698) |
Redemptions by issuer | 0 | (681) | (64) |
Distributions | (141) | (542) | (351) |
Transfers: | |||
Into Level 3 | 0 | 0 | 0 |
Out of Level 3 | 0 | 0 | 0 |
Fair value at end of period | 441 | 565 | 1,731 |
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 | (57) | 267 |
Private equity, other investments, other receivables and other assets | Other receivables | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 0 | 2,778 | |
Total gains (losses) for the year: | |||
Included in earnings | (2,778) | ||
Included in other comprehensive income | 0 | ||
Purchases and contributions | 0 | ||
Sales | 0 | ||
Redemptions by issuer | 0 | ||
Distributions | 0 | ||
Transfers: | |||
Into Level 3 | 0 | ||
Out of Level 3 | 0 | ||
Fair value at end of period | 0 | ||
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 | ||
Private equity, other investments, other receivables and other assets | Other assets | |||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | |||
Fair value at beginning of period | 4,975 | 787 | 15 |
Total gains (losses) for the year: | |||
Included in earnings | (2,527) | 4,188 | 772 |
Included in other comprehensive income | 0 | 0 | 0 |
Purchases and contributions | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Redemptions by issuer | 0 | 0 | 0 |
Distributions | 0 | 0 | 0 |
Transfers: | |||
Into Level 3 | 0 | 0 | 0 |
Out of Level 3 | 0 | 0 | 0 |
Fair value at end of period | 2,448 | 4,975 | 787 |
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 | $ (2,527) | $ 4,203 | $ 772 |
FAIR VALUE, Gains and Losses (R
FAIR VALUE, Gains and Losses (Realized and Unrealized) Included in Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net trading profits | |||
Gains and Losses (Realized and Unrealized) Included in Earnings [Line Items] | |||
Total (losses) gains included in earnings | $ (658) | $ (214) | $ (366) |
Change in unrealized (losses) gains for assets held at the end of the year | (223) | (28) | 19 |
Other revenues | |||
Gains and Losses (Realized and Unrealized) Included in Earnings [Line Items] | |||
Total (losses) gains included in earnings | 9,259 | 24,035 | 9,376 |
Change in unrealized (losses) gains for assets held at the end of the year | 8,992 | 11,398 | 2,274 |
Other Comprehensive Income (Loss) | |||
Gains and Losses (Realized and Unrealized) Included in Earnings [Line Items] | |||
Total (losses) gains included in earnings | (11,049) | (9,177) | 3,155 |
Change in unrealized (losses) gains for assets held at the end of the year | $ (10,922) | $ (3,975) | $ 3,133 |
FAIR VALUE, Significant Assumpt
FAIR VALUE, Significant Assumptions Used in Valuation of Level 3 Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a recurring basis | $ 2,462,380 | $ 1,955,517 |
Nonrecurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a nonrecurring basis | 89,984 | 80,917 |
Significant unobservable inputs (Level 3) | Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a recurring basis | 214,798 | 223,890 |
Significant unobservable inputs (Level 3) | Recurring | ARS – municipals one | Discounted cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a recurring basis | $ 10,413 | |
Significant unobservable inputs (Level 3) | Recurring | ARS – municipals one | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 6.36% | |
Average interest rates applicable to future interest income on the securities | 1.83% | |
Prepayment year | Dec. 31, 2026 | |
Significant unobservable inputs (Level 3) | Recurring | ARS – municipals one | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 5.17% | |
Average interest rates applicable to future interest income on the securities | 1.23% | |
Prepayment year | Dec. 31, 2019 | |
Significant unobservable inputs (Level 3) | Recurring | ARS – municipals one | Discounted cash flow | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 5.77% | |
Average interest rates applicable to future interest income on the securities | 1.53% | |
Prepayment year | Dec. 31, 2022 | |
Significant unobservable inputs (Level 3) | Recurring | ARS - municipals two | Discounted cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a recurring basis | $ 14,734 | |
Significant unobservable inputs (Level 3) | Recurring | ARS - municipals two | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 5.62% | |
Average interest rates applicable to future interest income on the securities | 0.91% | |
Prepayment year | Dec. 31, 2021 | |
Significant unobservable inputs (Level 3) | Recurring | ARS - municipals two | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 4.62% | |
Average interest rates applicable to future interest income on the securities | 0.91% | |
Prepayment year | Dec. 31, 2016 | |
Significant unobservable inputs (Level 3) | Recurring | ARS - municipals two | Discounted cash flow | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 5.12% | |
Average interest rates applicable to future interest income on the securities | 0.91% | |
Prepayment year | Dec. 31, 2021 | |
Significant unobservable inputs (Level 3) | Recurring | ARS - preferred securities | Discounted cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a recurring basis | $ 100,018 | |
Significant unobservable inputs (Level 3) | Recurring | ARS - preferred securities | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 6.34% | |
Average interest rates applicable to future interest income on the securities | 2.51% | |
Prepayment year | Dec. 31, 2021 | |
Significant unobservable inputs (Level 3) | Recurring | ARS - preferred securities | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 4.87% | |
Average interest rates applicable to future interest income on the securities | 1.24% | |
Prepayment year | Dec. 31, 2016 | |
Significant unobservable inputs (Level 3) | Recurring | ARS - preferred securities | Discounted cash flow | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 5.56% | |
Average interest rates applicable to future interest income on the securities | 1.34% | |
Prepayment year | Dec. 31, 2021 | |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Income or market approach | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a recurring basis | $ 56,746 | |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Transaction price or other investment-specific events | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a recurring basis | $ 26,419 | |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Income approach - discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Discount rate | 20.00% | |
Terminal growth rate of cash flows | 3.00% | |
Terminal year | Dec. 31, 2021 | |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Income approach - discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Discount rate | 13.00% | |
Terminal growth rate of cash flows | 3.00% | |
Terminal year | Dec. 31, 2019 | |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Income approach - discounted cash flow | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Discount rate | 17.90% | |
Terminal growth rate of cash flows | 3.00% | |
Terminal year | Dec. 31, 2020 | |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Market approach - market multiple method | Maximum | ||
Fair Value Inputs [Abstract] | ||
Weighting assigned to outcome of scenario 1/scenario 2 | 19.00% | |
EBITDA multiple | 7.5 | |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Market approach - market multiple method | Minimum | ||
Fair Value Inputs [Abstract] | ||
Weighting assigned to outcome of scenario 1/scenario 2 | 81.00% | |
EBITDA multiple | 5.25 | |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Market approach - market multiple method | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
EBITDA multiple | 6.3 | |
Significant unobservable inputs (Level 3) | Nonrecurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a nonrecurring basis | $ 47,982 | $ 37,830 |
Significant unobservable inputs (Level 3) | Nonrecurring | Impaired loans residential | Discounted cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a nonrecurring basis | $ 21,909 | |
Significant unobservable inputs (Level 3) | Nonrecurring | Impaired loans residential | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Prepayment rate (in years) | 12 years | |
Significant unobservable inputs (Level 3) | Nonrecurring | Impaired loans residential | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Prepayment rate (in years) | 7 years | |
Significant unobservable inputs (Level 3) | Nonrecurring | Impaired loans residential | Discounted cash flow | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Prepayment rate (in years) | 10 years 2 months 25 days | |
Significant unobservable inputs (Level 3) | Nonrecurring | Impaired loans corporate | Appraisal, discounted cash flow, or distressed enterprise value | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a nonrecurring basis | $ 26,073 |
FAIR VALUE, Carrying Amounts an
FAIR VALUE, Carrying Amounts and Estimated Fair Value of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Carrying amount | ||
Financial assets: | ||
Bank loans, net | $ 15,121,430 | $ 12,907,776 |
Loans to financial advisors, net | 838,721 | 488,760 |
Financial liabilities: | ||
Bank deposits | 14,262,547 | 11,919,881 |
Other borrowings(2) | 33,391 | 37,716 |
Senior notes payable | 1,680,587 | 1,137,570 |
Quoted prices in active markets for identical assets (Level 1) | ||
Financial assets: | ||
Bank loans, net | 0 | 0 |
Loans to financial advisors, net | 0 | 0 |
Financial liabilities: | ||
Bank deposits | 0 | 0 |
Other borrowings(2) | 0 | 0 |
Senior notes payable | 362,180 | 368,760 |
Significant other observable inputs (Level 2) | ||
Financial assets: | ||
Bank loans, net | 196,109 | 105,199 |
Loans to financial advisors, net | 0 | 0 |
Financial liabilities: | ||
Bank deposits | 13,947,310 | 11,564,963 |
Other borrowings(2) | 34,520 | 38,455 |
Senior notes payable | 1,452,071 | 892,963 |
Significant unobservable inputs (Level 3) | ||
Financial assets: | ||
Bank loans, net | 14,925,802 | 12,799,065 |
Loans to financial advisors, net | 706,717 | 420,868 |
Financial liabilities: | ||
Bank deposits | 318,228 | 358,981 |
Other borrowings(2) | 0 | 0 |
Senior notes payable | 0 | 0 |
Recurring | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 15,121,911 | 12,904,264 |
Loans to financial advisors, net | 706,717 | 420,868 |
Financial liabilities: | ||
Bank deposits | 14,265,538 | 11,923,944 |
Other borrowings(2) | 34,520 | 38,455 |
Senior notes payable | $ 1,814,251 | $ 1,261,723 |
FAIR VALUE, Investments in Priv
FAIR VALUE, Investments in Private Equity Measured at Net Asset Value Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments estimated life maximum | 9 years | |
Total private equity investments | $ 194,634 | $ 209,088 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments at fair value | 83,165 | 77,435 |
Private equity investments not measured at NAV(1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments at NAV | 111,469 | 131,653 |
Private equity investments at NAV | 30,543 | 38,932 |
Private equity investments at fair value | 83,165 | 77,435 |
Total private equity investments | 194,634 | 209,088 |
Parent | Private equity investments not measured at NAV(1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments at NAV | 27,542 | 35,606 |
Noncontrolling Interest | Private equity investments not measured at NAV(1) | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments at NAV | $ 3,001 | $ 3,326 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans to financial advisors and key revenue producers, repayment period | 5 years | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans to financial advisors and key revenue producers, repayment period | 8 years |
TRADING INSTRUMENTS AND TRADI76
TRADING INSTRUMENTS AND TRADING INSTRUMENTS SOLD BUT NOT YET PURCHASED (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Trading Securities [Abstract] | ||
Total debt securities | $ 655,737 | $ 581,837 |
Derivative contracts | 55,703 | 42,086 |
Equity securities | 16,029 | 28,344 |
Brokered certificates of deposit | 35,206 | 30,803 |
Other | 4,130 | 7,481 |
Total trading instruments | 766,805 | 690,551 |
Financial Instruments Sold, Not yet Purchased, at Fair Value [Abstract] | ||
Total debt securities | 301,721 | 262,162 |
Derivative liability | 8,835 | 20,239 |
Equity securities | 18,382 | 3,098 |
Corporate loans | 0 | 0 |
Other securities | 0 | 2,494 |
Total trading instruments sold but not yet purchased | 328,938 | 287,993 |
Municipal and provincial obligations | ||
Trading Securities [Abstract] | ||
Total debt securities | 274,163 | 206,063 |
Financial Instruments Sold, Not yet Purchased, at Fair Value [Abstract] | ||
Total debt securities | 1,161 | 18,313 |
Corporate obligations | ||
Trading Securities [Abstract] | ||
Total debt securities | 132,885 | 95,317 |
Financial Instruments Sold, Not yet Purchased, at Fair Value [Abstract] | ||
Total debt securities | 31,074 | 33,184 |
Government and agency obligations | ||
Trading Securities [Abstract] | ||
Total debt securities | 49,598 | 115,947 |
Financial Instruments Sold, Not yet Purchased, at Fair Value [Abstract] | ||
Total debt securities | 266,682 | 205,658 |
Agency MBS and CMOs | ||
Trading Securities [Abstract] | ||
Total debt securities | 164,663 | 117,570 |
Financial Instruments Sold, Not yet Purchased, at Fair Value [Abstract] | ||
Total debt securities | 2,804 | 5,007 |
Non-agency CMOs and ABS | ||
Trading Securities [Abstract] | ||
Total debt securities | 34,428 | 46,940 |
Financial Instruments Sold, Not yet Purchased, at Fair Value [Abstract] | ||
Total debt securities | $ 0 | $ 0 |
AVAILABLE FOR SALE SECURITIES,
AVAILABLE FOR SALE SECURITIES, Sale of Available-for-sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Sales of Available for Sale Securities [Abstract] | |||
Proceeds from sales of available for sale securities | $ 11,062 | $ 84,785 | $ 49,937 |
RJ Bank available for sale securities | |||
Sales of Available for Sale Securities [Abstract] | |||
Proceeds from sales of available for sale securities | 8,500 | 12,200 | 26,600 |
Auction rate securities | |||
Sales of Available for Sale Securities [Abstract] | |||
Proceeds from sales of available for sale securities | 2,800 | 63,900 | 51,200 |
Other revenues | RJ Bank available for sale securities | |||
Sales of Available for Sale Securities [Abstract] | |||
Available-for-sale securities, gross realized gain (loss) | 100 | (600) | 300 |
Other revenues | Auction rate securities | |||
Sales of Available for Sale Securities [Abstract] | |||
Available-for-sale securities, gross realized gain (loss) | $ 300 | $ 11,100 | 7,100 |
Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS | |||
Sales of Available for Sale Securities [Abstract] | |||
Proceeds from sales of available for sale securities | 26,500 | ||
Jefferson County, Alabama Sewer Revenue Refunding Warrants ARS | Other revenues | |||
Sales of Available for Sale Securities [Abstract] | |||
Available-for-sale securities, gross realized gain (loss) | $ 5,500 |
AVAILABLE FOR SALE SECURITIES78
AVAILABLE FOR SALE SECURITIES, Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Schedule of Available-for-sale Securities [Line Items] | |||
Total estimated fair value | $ 410,971 | $ 112,120 | |
Schedule of Available for Sale Securities [Abstract] | |||
Cost basis | 866,060 | 511,522 | $ 554,509 |
Gross unrealized gains | 2,535 | 8,579 | 16,972 |
Gross unrealized losses | (9,197) | (6,371) | (9,192) |
Fair value | 859,398 | 513,730 | 562,289 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 9,197 | 6,371 | |
RJ Bank | |||
Schedule of Available for Sale Securities [Abstract] | |||
Cost basis | 735,343 | 378,254 | 368,448 |
Gross unrealized gains | 2,521 | 1,556 | 1,219 |
Gross unrealized losses | (3,631) | (4,844) | (8,113) |
Fair value | 734,233 | 374,966 | 361,554 |
RJ Bank | Agency MBS and CMOs | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total estimated fair value | 237,773 | 33,012 | |
Schedule of Available for Sale Securities [Abstract] | |||
Cost basis | 680,341 | 301,001 | 267,927 |
Gross unrealized gains | 2,512 | 1,538 | 822 |
Gross unrealized losses | (556) | (344) | (1,029) |
Fair value | 682,297 | 302,195 | 267,720 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 556 | 344 | |
RJ Bank | Non-agency CMOs | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total estimated fair value | 48,393 | 65,854 | |
Schedule of Available for Sale Securities [Abstract] | |||
Cost basis | 53,427 | 75,678 | 98,946 |
Gross unrealized gains | 9 | 18 | 56 |
Gross unrealized losses | (2,917) | (4,327) | (7,084) |
Fair value | 50,519 | 71,369 | 91,918 |
Non-credit portion of OTTI recorded in AOCI, before tax | 2,300 | 3,600 | 6,100 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2,917 | 4,327 | |
RJ Bank | Other securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total estimated fair value | 1,417 | 1,402 | |
Schedule of Available for Sale Securities [Abstract] | |||
Cost basis | 1,575 | 1,575 | 1,575 |
Gross unrealized gains | 0 | 0 | 341 |
Gross unrealized losses | (158) | (173) | 0 |
Fair value | 1,417 | 1,402 | 1,916 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 158 | 173 | |
Non-broker-dealer subsidiaries | Auction rate securities | |||
Schedule of Available for Sale Securities [Abstract] | |||
Cost basis | 130,717 | 133,268 | 186,061 |
Gross unrealized gains | 14 | 7,023 | 15,753 |
Gross unrealized losses | (5,566) | (1,527) | (1,079) |
Fair value | 125,165 | 138,764 | 200,735 |
Non-broker-dealer subsidiaries | ARS – municipals | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total estimated fair value | 24,899 | 11,852 | |
Schedule of Available for Sale Securities [Abstract] | |||
Cost basis | 27,491 | 28,966 | 81,535 |
Gross unrealized gains | 14 | 576 | 6,240 |
Gross unrealized losses | (2,358) | (1,527) | (1,079) |
Fair value | 25,147 | 28,015 | 86,696 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2,358 | 1,527 | |
Non-broker-dealer subsidiaries | ARS - preferred securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total estimated fair value | 98,489 | ||
Schedule of Available for Sale Securities [Abstract] | |||
Cost basis | 103,226 | 104,302 | 104,526 |
Gross unrealized gains | 0 | 6,447 | 9,513 |
Gross unrealized losses | (3,208) | 0 | 0 |
Fair value | 100,018 | $ 110,749 | $ 114,039 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 3,208 |
AVAILABLE FOR SALE SECURITIES79
AVAILABLE FOR SALE SECURITIES, Contractual Maturities (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Amortized cost [Abstract] | |
Within one year | $ 1 |
After one but within five years | 27,476 |
After five but within ten years | 100,033 |
After ten years | 738,550 |
Total | 866,060 |
Carrying value [Abstract] | |
Within one year | 1 |
After one but within five years | 27,799 |
After five but within ten years | 100,729 |
After ten years | 730,869 |
Total | $ 859,398 |
Weighted-average yield [Abstract] | |
Within one year (in hundredths) | 0.54% |
After one but within five years (in hundredths) | 1.66% |
After five but within ten years (in hundredths) | 1.46% |
After ten years (in hundredths) | 1.49% |
Total (in hundredths) | 1.49% |
RJ Bank | Agency MBS and CMOs | |
Amortized cost [Abstract] | |
Within one year | $ 1 |
After one but within five years | 27,476 |
After five but within ten years | 100,033 |
After ten years | 552,831 |
Total | 680,341 |
Carrying value [Abstract] | |
Within one year | 1 |
After one but within five years | 27,799 |
After five but within ten years | 100,729 |
After ten years | 553,768 |
Total | $ 682,297 |
Weighted-average yield [Abstract] | |
Within one year (in hundredths) | 0.54% |
After one but within five years (in hundredths) | 1.66% |
After five but within ten years (in hundredths) | 1.46% |
After ten years (in hundredths) | 1.49% |
Total (in hundredths) | 1.49% |
RJ Bank | Non-agency CMOs | |
Amortized cost [Abstract] | |
Within one year | $ 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 53,427 |
Total | 53,427 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 50,519 |
Total | $ 50,519 |
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) | 2.56% |
Total (in hundredths) | 2.56% |
RJ Bank | Other securities | |
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 |
Total | 1,575 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 1,417 |
Total | $ 1,417 |
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 | Sub-total agency MBS & CMOs, non-agency CMOs and other securities | |
Amortized cost [Abstract] | |
Within one year | $ 1 |
After one but within five years | 27,476 |
After five but within ten years | 100,033 |
After ten years | 607,833 |
Total | 735,343 |
Carrying value [Abstract] | |
Within one year | 1 |
After one but within five years | 27,799 |
After five but within ten years | 100,729 |
After ten years | 605,704 |
Total | $ 734,233 |
Weighted-average yield [Abstract] | |
Within one year (in hundredths) | 0.54% |
After one but within five years (in hundredths) | 1.66% |
After five but within ten years (in hundredths) | 1.46% |
After ten years (in hundredths) | 1.58% |
Total (in hundredths) | 1.57% |
Non-broker-dealer subsidiaries | ARS – municipals | |
Amortized cost [Abstract] | |
Within one year | $ 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 27,491 |
Total | 27,491 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 25,147 |
Total | $ 25,147 |
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) | 1.77% |
Total (in hundredths) | 1.77% |
Non-broker-dealer subsidiaries | ARS - preferred securities | |
Amortized cost [Abstract] | |
Within one year | $ 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 103,226 |
Total | 103,226 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 100,018 |
Total | $ 100,018 |
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) | 0.87% |
Total (in hundredths) | 0.87% |
Non-broker-dealer subsidiaries | Auction rate securities | |
Amortized cost [Abstract] | |
Within one year | $ 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 130,717 |
Total | 130,717 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 125,165 |
Total | $ 125,165 |
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) | 1.05% |
Total (in hundredths) | 1.05% |
AVAILABLE FOR SALE SECURITIES80
AVAILABLE FOR SALE SECURITIES, Gross Unrealized Losses and Fair Value and Significant Assumptions (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016USD ($)ratingpositionARS_Securitysecurities | Sep. 30, 2015USD ($) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | $ 326,246 | $ 5,115 |
Estimated fair value 12 months or more | 84,725 | 107,005 |
Total estimated fair value | 410,971 | 112,120 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (4,445) | (213) |
Unrealized losses 12 months or more | (4,752) | (6,158) |
Unrealized losses | $ (9,197) | (6,371) |
Significant assumptions [Abstract] | ||
Minimum number of agencies rating ARS preferred securities as investment grade | rating | 1 | |
ARS - preferred securities | ||
Significant assumptions [Abstract] | ||
Number of available for sale securities with fair value less than cost basis | ARS_Security | 37 | |
Auction rate securities | ||
Significant assumptions [Abstract] | ||
Par value of auction rate securities repurchased | $ 152,900 | |
Number of available for sale securities with fair value less than cost basis | securities | 9 | |
RJ Bank | Agency MBS and CMOs | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | $ 208,880 | 3,488 |
Estimated fair value 12 months or more | 28,893 | 29,524 |
Total estimated fair value | 237,773 | 33,012 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (361) | (37) |
Unrealized losses 12 months or more | (195) | (307) |
Unrealized losses | $ (556) | (344) |
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 | position | 38 | |
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | position | 32 | |
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | position | 6 | |
RJ Bank | Non-agency CMOs | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | $ 4,256 | 0 |
Estimated fair value 12 months or more | 44,137 | 65,854 |
Total estimated fair value | 48,393 | 65,854 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (21) | 0 |
Unrealized losses 12 months or more | (2,896) | (4,327) |
Unrealized losses | $ (2,917) | (4,327) |
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 | position | 11 | |
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | position | 1 | |
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | position | 10 | |
Number of available-for-sale investment positions | position | 13 | |
RJ Bank | Non-agency CMOs | Low end | ||
Significant assumptions [Abstract] | ||
Default rate (in hundredths) | 0.00% | |
Loss severity (in hundredths) | 0.00% | |
Prepayment rate (in hundredths) | 6.50% | |
RJ Bank | Non-agency CMOs | High end | ||
Significant assumptions [Abstract] | ||
Default rate (in hundredths) | 8.20% | |
Loss severity (in hundredths) | 53.80% | |
Prepayment rate (in hundredths) | 19.60% | |
RJ Bank | Non-agency CMOs | Weighted Average | ||
Significant assumptions [Abstract] | ||
Default rate (in hundredths) | 3.07% | |
Loss severity (in hundredths) | 32.09% | |
Prepayment rate (in hundredths) | 12.22% | |
RJ Bank | Other securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | $ 1,417 | 1,402 |
Estimated fair value 12 months or more | 0 | 0 |
Total estimated fair value | 1,417 | 1,402 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (158) | (173) |
Unrealized losses 12 months or more | 0 | 0 |
Unrealized losses | (158) | (173) |
Non-broker-dealer subsidiaries | ARS – municipals | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | 13,204 | 225 |
Estimated fair value 12 months or more | 11,695 | 11,627 |
Total estimated fair value | 24,899 | 11,852 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (697) | (3) |
Unrealized losses 12 months or more | (1,661) | (1,524) |
Unrealized losses | (2,358) | $ (1,527) |
Non-broker-dealer subsidiaries | ARS - preferred securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | 98,489 | |
Estimated fair value 12 months or more | 0 | |
Total estimated fair value | 98,489 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (3,208) | |
Unrealized losses 12 months or more | 0 | |
Unrealized losses | $ (3,208) |
AVAILABLE FOR SALE SECURITIES81
AVAILABLE FOR SALE SECURITIES, OTTI Related to Credit Losses Recognized in Other Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Credit losses on debt securities recognized in earnings [Roll Forward] | |||
Amount related to credit losses on securities we held at the beginning of the year | $ 11,847 | $ 18,703 | $ 28,217 |
Decreases to the amount related to credit loss for securities sold during the year | (3,740) | (6,856) | (9,541) |
Additional increases to the amount related to credit loss for which an OTTI was previously recognized | 0 | 0 | 27 |
Amount related to credit losses on securities we held at the end of the year | $ 8,107 | $ 11,847 | $ 18,703 |
RECEIVABLES FROM AND PAYABLES82
RECEIVABLES FROM AND PAYABLES TO BROKERAGE CLIENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Receivables from brokerage clients | ||
Brokerage client receivables | $ 2,715,428 | $ 2,185,586 |
Allowance for doubtful accounts | (646) | (290) |
Brokerage client receivables, net | 2,714,782 | 2,185,296 |
Payables to brokerage clients | ||
Interest bearing | 4,893,813 | 4,148,952 |
Non-interest bearing | 1,550,858 | 522,121 |
Total brokerage client payables | $ 6,444,671 | $ 4,671,073 |
BANK LOANS, NET, Held for Sale
BANK LOANS, NET, Held for Sale and Held for Investment (Details) $ in Thousands | Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Sep. 30, 2012USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loan portfolio segments | segment | 6 | ||||
Loans Receivable Held-for-sale, Net [Abstract] | |||||
Loans held for sale, net | $ 214,286 | $ 119,519 | $ 45,988 | $ 110,292 | $ 160,515 |
Loans held for investment: | |||||
Total loans held for investment | 15,234,502 | 13,073,183 | 11,103,418 | 8,891,346 | 8,049,236 |
Net unearned income and deferred expenses | (40,675) | (32,424) | (37,533) | (43,936) | (70,698) |
Total loans held for investment, net | 15,193,827 | 13,040,759 | 11,065,885 | 8,847,410 | 7,978,538 |
Total loans held for sale and investment | 15,408,113 | 13,160,278 | 11,111,873 | 8,957,702 | 8,139,053 |
Allowance for loan losses | (197,378) | (172,257) | (147,574) | (136,501) | (147,541) |
Bank loans, net | $ 15,210,735 | $ 12,988,021 | $ 10,964,299 | $ 8,821,201 | $ 7,991,512 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for sale, net (in hundredths) | 1.00% | 1.00% | 0.00% | 1.00% | 2.00% |
Total loans held for sale and investment (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
C&I loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 7,470,373 | $ 6,928,018 | |||
C&I loans | Domestic | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 6,402,675 | $ 5,893,631 | $ 5,378,592 | $ 4,439,668 | $ 4,553,061 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 42.00% | 44.00% | 49.00% | 50.00% | 55.00% |
C&I loans | Foreign | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 1,067,698 | $ 1,034,387 | $ 1,043,755 | $ 806,337 | $ 465,770 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 7.00% | 8.00% | 9.00% | 9.00% | 6.00% |
CRE construction loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 122,718 | $ 162,356 | |||
CRE construction loans | Domestic | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 107,437 | $ 126,402 | $ 76,733 | $ 38,964 | $ 26,360 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 1.00% | 1.00% | 1.00% | 0.00% | 1.00% |
CRE construction loans | Foreign | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 15,281 | $ 35,954 | $ 17,462 | $ 21,876 | $ 23,114 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
CRE loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 2,554,071 | $ 2,054,154 | |||
CRE loans | Domestic | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 2,188,652 | $ 1,679,332 | $ 1,415,093 | $ 1,075,986 | $ 828,414 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 14.00% | 13.00% | 13.00% | 12.00% | 10.00% |
CRE loans | Foreign | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 365,419 | $ 374,822 | $ 274,070 | $ 207,060 | $ 108,036 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 2.00% | 3.00% | 2.00% | 2.00% | 1.00% |
Tax-exempt loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 740,944 | $ 484,537 | |||
Tax-exempt loans | Domestic | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 740,944 | $ 484,537 | $ 122,218 | ||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 5.00% | 4.00% | 1.00% | ||
Residential mortgage loans | Domestic | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 2,439,286 | $ 1,959,786 | $ 1,749,513 | $ 1,743,787 | $ 1,690,465 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 16.00% | 15.00% | 16.00% | 20.00% | 21.00% |
Residential mortgage loans | Foreign | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 2,283 | $ 2,828 | $ 2,234 | $ 1,863 | $ 1,521 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
SBL | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 1,904,827 | $ 1,481,504 | |||
SBL | Domestic | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 1,903,930 | $ 1,479,562 | $ 1,021,358 | $ 554,210 | $ 350,770 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 12.00% | 11.00% | 9.00% | 6.00% | 4.00% |
SBL | Foreign | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 897 | $ 1,942 | $ 2,390 | $ 1,595 | $ 1,725 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
BANK LOANS, NET, Originations,
BANK LOANS, NET, Originations, Purchases, and Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Loans held for sale | |||
Payments for Origination and Purchases of Loans Held-for-sale [Abstract] | |||
Loans held for sale purchased or originated | $ 1,800,000 | $ 1,200,000 | $ 1,000,000 |
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Proceeds for sale of loans held for sale | 383,000 | 213,000 | 189,000 |
Gain on sales of loans, net | 1,700 | 1,700 | 800 |
Unrealized loss on loans held for sale | 300 | 400 | 400 |
Loans held for investment | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 854,082 | 1,013,232 | 570,834 |
Sales | 172,968 | 108,983 | 219,914 |
Loans held for investment | C&I loans | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 457,503 | 792,921 | 536,167 |
Sales | 172,968 | 108,983 | 219,914 |
Loans held for investment | CRE | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 24,869 | 0 | 5,000 |
Sales | 0 | 0 | 0 |
Loans held for investment | Residential mortgage loans | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 371,710 | 220,311 | 29,667 |
Sales | 0 | 0 | $ 0 |
Financing receivable, significant purchase in one portfolio | $ 294,000 | $ 207,000 |
BANK LOANS, NET, Analysis of Pa
BANK LOANS, NET, Analysis of Payment Status of Loans Held for Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | $ 15,234,502 | $ 13,073,183 | $ 11,103,418 | $ 8,891,346 | $ 8,049,236 |
Nonaccrual | 81,207 | 52,619 | |||
Performing nonaccrual loans | 54,000 | 22,000 | |||
Impaired interest lost on nonaccrual loans | 2,000 | 1,000 | $ 4,000 | ||
Impaired financing receivable, interest income recognized | 1,000 | ||||
C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 7,470,373 | 6,928,018 | |||
Nonaccrual | 35,194 | 0 | |||
CRE construction | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 122,718 | 162,356 | |||
Nonaccrual | 0 | 0 | |||
CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 2,554,071 | 2,054,154 | |||
Nonaccrual | 4,230 | 4,796 | |||
Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 740,944 | 484,537 | |||
Nonaccrual | 0 | 0 | |||
Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 2,420,869 | 1,941,794 | |||
Nonaccrual | 41,746 | 47,504 | |||
Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 20,700 | 20,820 | |||
Nonaccrual | 37 | 319 | |||
SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 1,904,827 | 1,481,504 | |||
Nonaccrual | 0 | 0 | |||
30-89 days and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 1,766 | 3,099 | |||
30-89 days and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 163 | |||
30-89 days and accruing | CRE construction | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
30-89 days and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
30-89 days and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
30-89 days and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 1,766 | 2,906 | |||
30-89 days and accruing | Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 30 | |||
30-89 days and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
90 days or more and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
90 days or more and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
90 days or more and accruing | CRE construction | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
90 days or more and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
90 days or more and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
90 days or more and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
90 days or more and accruing | Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
90 days or more and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
Total past due and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 1,766 | 3,099 | |||
Total past due and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 163 | |||
Total past due and accruing | CRE construction | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
Total past due and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
Total past due and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
Total past due and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 1,766 | 2,906 | |||
Total past due and accruing | Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 30 | |||
Total past due and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
Current and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 15,151,529 | 13,017,465 | |||
Current and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 7,435,179 | 6,927,855 | |||
Current and accruing | CRE construction | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 122,718 | 162,356 | |||
Current and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 2,549,841 | 2,049,358 | |||
Current and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 740,944 | 484,537 | |||
Current and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 2,377,357 | 1,891,384 | |||
Current and accruing | Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 20,663 | 20,471 | |||
Current and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 1,904,827 | 1,481,504 | |||
One-to-Four Family Residential Mortgage Loans | Residential mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | $ 21,000 | $ 25,000 |
BANK LOANS, NET, Summary of Imp
BANK LOANS, NET, Summary of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | $ 65,587 | $ 46,041 | |
Impaired loans without allowance for loan losses, gross recorded investment | 22,039 | 25,017 | |
Total impaired loans, gross recorded investment | 87,626 | 71,058 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 77,209 | 60,032 | |
Impaired loans without allowance for loan losses, unpaid principal balance | 38,097 | 41,209 | |
Total impaired loans, unpaid principal balance | 115,306 | 101,241 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 16,498 | 5,146 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Average impaired loan balance | 74,140 | 85,054 | $ 99,990 |
Interest income recognized | 1,413 | 1,426 | 1,592 |
C&I loans | |||
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | 35,194 | 10,599 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 35,872 | 11,204 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 13,351 | 1,132 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Impaired loan, troubled debt restructurings | 11,000 | ||
Average impaired loan balance | 18,112 | 11,311 | 6,183 |
CRE loans | |||
Gross recorded investment [Abstract] | |||
Impaired loans without allowance for loan losses, gross recorded investment | 4,230 | 4,796 | |
Unpaid principal balance [Abstract] | |||
Impaired loans without allowance for loan losses, unpaid principal balance | 11,611 | 11,611 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Impaired loan, troubled debt restructurings | 4,000 | 5,000 | |
Average impaired loan balance | 4,474 | 14,694 | 23,416 |
Residential mortgage - first mortgage loans | |||
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | 30,393 | 35,442 | |
Impaired loans without allowance for loan losses, gross recorded investment | 17,809 | 20,221 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 41,337 | 48,828 | |
Impaired loans without allowance for loan losses, unpaid principal balance | 26,486 | 29,598 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 3,147 | 4,014 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Impaired loan, troubled debt restructurings | 28,000 | 33,000 | |
Average impaired loan balance | 51,554 | 59,049 | 70,370 |
Interest income recognized | 1,413 | 1,426 | 1,592 |
Residential mortgage - Home equity loans/lines | |||
Loan and Lease Receivables, Impaired [Abstract] | |||
Average impaired loan balance | $ 0 | $ 0 | $ 21 |
BANK LOANS, NET, Impact of TDRs
BANK LOANS, NET, Impact of TDRs (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016USD ($)commitmentTDRcontract | Sep. 30, 2015USD ($)commitmentTDRcontract | Sep. 30, 2014USD ($)TDRcontract | |
Modification of loans [Abstract] | |||
Number of contracts | contract | 17 | ||
Pre-modification outstanding recorded investment | $ 45,090 | ||
Post-modification outstanding recorded investment | $ 41,218 | ||
Subsquent default of modified loans [Abstract] | |||
Number of outstanding commitments | commitment | 0 | ||
C&I loans | |||
Modification of loans [Abstract] | |||
Number of contracts | contract | 1 | ||
Pre-modification outstanding recorded investment | $ 19,200 | ||
Post-modification outstanding recorded investment | $ 15,035 | ||
Subsquent default of modified loans [Abstract] | |||
Number of outstanding commitments | commitment | 1 | ||
Outstanding commitments on TDRs | $ 600 | ||
CRE loans | |||
Modification of loans [Abstract] | |||
Number of contracts | contract | 2 | ||
Pre-modification outstanding recorded investment | $ 22,291 | ||
Post-modification outstanding recorded investment | $ 22,291 | ||
Residential mortgage - first mortgage loans | |||
Modification of loans [Abstract] | |||
Number of contracts | contract | 1 | 6 | 14 |
Pre-modification outstanding recorded investment | $ 236 | $ 1,117 | $ 3,599 |
Post-modification outstanding recorded investment | $ 236 | $ 1,196 | $ 3,892 |
Subsquent default of modified loans [Abstract] | |||
Number of contract modifications with subsequent defaults | TDR | 0 | 0 | 3 |
Recorded investment of contract modifications with subsequent defaults | $ 900 |
BANK LOANS, NET, Credit Quality
BANK LOANS, NET, Credit Quality of Held for Investment Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 15,234,502 | $ 13,073,183 |
Performing residential first mortgage loans | 2,139,266 | |
LTV less than 50% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Performing residential first mortgage loans | 804,559 | |
LTV greater than 50% but less than 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Performing residential first mortgage loans | 1,256,436 | |
LTV greater than 80% but less than 100% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Performing residential first mortgage loans | 66,307 | |
LTV greater than 100%, but less than 120% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Performing residential first mortgage loans | 11,106 | |
LTV greater than 120% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Performing residential first mortgage loans | 858 | |
C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 7,470,373 | 6,928,018 |
CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 122,718 | 162,356 |
CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 2,554,071 | 2,054,154 |
Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 740,944 | 484,537 |
Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 2,420,869 | 1,941,794 |
Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 20,700 | 20,820 |
SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,904,827 | 1,481,504 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 14,935,022 | 12,790,684 |
Pass | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 7,241,055 | 6,739,179 |
Pass | CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 122,718 | 162,356 |
Pass | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 2,549,672 | 2,034,692 |
Pass | Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 740,944 | 484,537 |
Pass | Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 2,355,393 | 1,868,044 |
Pass | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 20,413 | 20,372 |
Pass | SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,904,827 | 1,481,504 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 128,577 | 112,680 |
Special mention | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 117,046 | 97,623 |
Special mention | CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Special mention | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 39 |
Special mention | Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Special mention | Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 11,349 | 14,890 |
Special mention | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 182 | 128 |
Special mention | SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 170,903 | 169,819 |
Substandard | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 112,272 | 91,216 |
Substandard | CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Substandard | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 4,399 | 19,423 |
Substandard | Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Substandard | Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 54,127 | 58,860 |
Substandard | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 105 | 320 |
Substandard | SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 0 | $ 0 |
BANK LOANS, NET, Allowance for
BANK LOANS, NET, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in the allowance for loan losses [Roll Forward] | |||
Provision (benefit) for loan losses | $ 28,167 | $ 23,570 | $ 13,565 |
Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year: | 172,257 | 147,574 | 136,501 |
Provision (benefit) for loan losses | 28,167 | 23,570 | 13,565 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (4,426) | (2,858) | (3,876) |
Recoveries | 1,417 | 5,615 | 2,129 |
Net charge-offs | (3,009) | 2,757 | (1,747) |
Foreign exchange translation adjustment | (37) | (1,644) | (745) |
Balance at end of period | 197,378 | 172,257 | 147,574 |
C&I | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year: | 117,623 | 103,179 | 95,994 |
Provision (benefit) for loan losses | 23,051 | 16,091 | 9,560 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (2,956) | (1,191) | (1,845) |
Recoveries | 0 | 611 | 16 |
Net charge-offs | (2,956) | (580) | (1,829) |
Foreign exchange translation adjustment | (17) | (1,067) | (546) |
Balance at end of period | 137,701 | 117,623 | 103,179 |
CRE construction | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year: | 2,707 | 1,594 | 1,000 |
Provision (benefit) for loan losses | (1,023) | 1,176 | 625 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 |
Foreign exchange translation adjustment | (70) | (63) | (31) |
Balance at end of period | 1,614 | 2,707 | 1,594 |
CRE loans | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year: | 30,486 | 25,022 | 19,266 |
Provision (benefit) for loan losses | 5,997 | 2,205 | 5,860 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | (16) |
Recoveries | 0 | 3,773 | 80 |
Net charge-offs | 0 | 3,773 | 64 |
Foreign exchange translation adjustment | 50 | (514) | (168) |
Balance at end of period | 36,533 | 30,486 | 25,022 |
Tax-exempt | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year: | 5,949 | 1,380 | 0 |
Provision (benefit) for loan losses | (1,849) | 4,569 | 1,380 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | 4,100 | 5,949 | 1,380 |
Residential mortgage | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year: | 12,526 | 14,350 | 19,126 |
Provision (benefit) for loan losses | 191 | (1,363) | (4,759) |
Net (charge-offs)/recoveries: | |||
Charge-offs | (1,470) | (1,667) | (2,015) |
Recoveries | 1,417 | 1,206 | 1,998 |
Net charge-offs | (53) | (461) | (17) |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | 12,664 | 12,526 | 14,350 |
SBL | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year: | 2,966 | 2,049 | 1,115 |
Provision (benefit) for loan losses | 1,800 | 892 | 899 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 25 | 35 |
Net charge-offs | 0 | 25 | 35 |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | $ 4,766 | $ 2,966 | $ 2,049 |
BANK LOANS, NET, Allowance fo90
BANK LOANS, NET, Allowance for Loan Losses, Loans Individually and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Recorded investment [Abstract] | |||||
Total loans held for investment | $ 15,234,502 | $ 13,073,183 | $ 11,103,418 | $ 8,891,346 | $ 8,049,236 |
Reserve for unfunded lending commitments [Abstract] | |||||
Reserve for unfunded lending commitments | 11,000 | 10,000 | |||
C&I loans | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 7,470,373 | 6,928,018 | |||
CRE construction | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 122,718 | 162,356 | |||
CRE | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 2,554,071 | 2,054,154 | |||
Tax-exempt | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 740,944 | 484,537 | |||
SBL | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 1,904,827 | 1,481,504 | |||
Loans held for investment | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 16,507 | 5,178 | |||
Collectively evaluated for impairment | 180,871 | 167,079 | |||
Total allowance for loan losses | 197,378 | 172,257 | 147,574 | 136,501 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 96,159 | 78,101 | |||
Collectively evaluated for impairment | 15,138,343 | 12,995,082 | |||
Total loans held for investment | 15,234,502 | 13,073,183 | |||
Loans held for investment | C&I loans | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 13,351 | 1,132 | |||
Collectively evaluated for impairment | 124,350 | 116,491 | |||
Total allowance for loan losses | 137,701 | 117,623 | 103,179 | 95,994 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 35,194 | 10,599 | |||
Collectively evaluated for impairment | 7,435,179 | 6,917,419 | |||
Total loans held for investment | 7,470,373 | 6,928,018 | |||
Loans held for investment | CRE construction | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 1,614 | 2,707 | |||
Total allowance for loan losses | 1,614 | 2,707 | 1,594 | 1,000 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 122,718 | 162,356 | |||
Total loans held for investment | 122,718 | 162,356 | |||
Loans held for investment | CRE | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 36,533 | 30,486 | |||
Total allowance for loan losses | 36,533 | 30,486 | 25,022 | 19,266 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 4,230 | 4,796 | |||
Collectively evaluated for impairment | 2,549,841 | 2,049,358 | |||
Total loans held for investment | 2,554,071 | 2,054,154 | |||
Loans held for investment | Tax-exempt | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 4,100 | 5,949 | |||
Total allowance for loan losses | 4,100 | 5,949 | 1,380 | 0 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 740,944 | 484,537 | |||
Total loans held for investment | 740,944 | 484,537 | |||
Loans held for investment | Residential mortgage loans | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 3,156 | 4,046 | |||
Collectively evaluated for impairment | 9,508 | 8,480 | |||
Total allowance for loan losses | 12,664 | 12,526 | 14,350 | 19,126 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 56,735 | 62,706 | |||
Collectively evaluated for impairment | 2,384,834 | 1,899,908 | |||
Total loans held for investment | 2,441,569 | 1,962,614 | |||
Loans held for investment | SBL | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 4,766 | 2,966 | |||
Total allowance for loan losses | 4,766 | 2,966 | $ 2,049 | $ 1,115 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 1,904,827 | 1,481,504 | |||
Total loans held for investment | $ 1,904,827 | $ 1,481,504 |
PREPAID EXPENSES AND OTHER AS91
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Entity Information [Line Items] | ||
Investments in company-owned life insurance | $ 417,137 | $ 320,523 |
Prepaid expenses | 91,129 | 75,528 |
Investment in FHLB stock | 38,813 | 35,582 |
Indemnification asset | 35,325 | 143,144 |
Investment in FRB stock | 24,706 | 24,450 |
Low-income housing tax credit fund financing asset | 20,543 | 24,452 |
OREO | 4,497 | 4,631 |
Other assets | 50,490 | 32,162 |
Prepaid expenses and other assets | 777,224 | 693,739 |
Cumulative face value of company-owned life insurance policies | 955,800 | |
Amount of liability related to the low-income housing tax credit fund financing asset | 20,500 | 24,500 |
RJ Bank | ||
Entity Information [Line Items] | ||
Direct investment in LIHTC project partnerships by RJ Bank | 55,129 | 33,267 |
3Macs | ||
Entity Information [Line Items] | ||
Prepaid compensation expense | 24,285 | 0 |
Restricted Stock | Deutsche WM | ||
Entity Information [Line Items] | ||
Prepaid compensation expense | $ 15,170 | $ 0 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016USD ($)investorFund | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | |||
Number of multiinvestor tax credit funds in which RJTCF is the managing member | Fund | 1 | ||
Number of investors with a guaranteed return | investor | 1 | ||
Assets: | |||
Assets segregated pursuant to regulations and other segregated assets | $ 4,889,584 | $ 2,905,324 | |
Receivables, other | 615,853 | 514,000 | |
Prepaid expenses and other assets | 777,224 | 693,739 | |
Total assets | 31,593,733 | 26,468,032 | |
Liabilities and Equity: | |||
Trade and other payables | 590,560 | 729,245 | |
Total liabilities | 26,443,817 | 21,681,934 | |
Equity | 4,914,096 | 4,522,031 | |
Noncontrolling interests | 235,820 | 264,067 | |
Total equity | 5,149,916 | 4,786,098 | $ 4,433,256 |
Total liabilities and equity | 31,593,733 | 26,468,032 | |
Revenues: | |||
Interest | 640,325 | 543,207 | 480,886 |
Other | 82,006 | 96,596 | 67,516 |
Total revenues | 5,520,344 | 5,308,164 | 4,965,460 |
Interest expense | (117,077) | (107,954) | (104,091) |
Net revenues | 5,403,267 | 5,200,210 | 4,861,369 |
Non-interest expenses | 4,625,896 | 4,423,498 | 4,145,421 |
Net income including noncontrolling interests | 506,078 | 480,678 | 448,151 |
Net loss attributable to noncontrolling interests | (23,272) | (21,462) | (32,097) |
Net income attributable to Raymond James Financial, Inc. | $ 529,350 | 502,140 | 480,248 |
Low-income housing tax credit funds [Abstract] | |||
Number of low-income housing tax credit (LIHTC) funds | Fund | 106 | ||
Minimum number of investor members or limited partners of LIHTC Funds | investor | 1 | ||
Number of low-income housing tax credit (LIHTC) funds determined to be VIE's | investor | 93 | ||
Number of low-income housing tax credit (LIHTC) funds not determined to be VIE's | investor | 13 | ||
Number of non-guaranteed tax credit funds | Fund | 6 | ||
Number of guaranteed tax credit funds | Fund | 1 | ||
Number of tax credit funds consolidated but not determined to be VIE's | Fund | 7 | ||
Variable interest entities, not primary beneficiary [Abstract] | |||
Number of new market tax credit funds, not primary beneficiary | Fund | 6 | ||
LIHTC Funds - Primary Beneficiary | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | |||
Aggregate assets | $ 107,511 | 143,111 | |
Aggregate liabilities | 26,604 | 41,125 | |
Guaranteed LIHTC Fund - Primary Beneficiary | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | |||
Aggregate assets | 63,415 | 71,231 | |
Aggregate liabilities | 2,556 | 2,263 | |
Restricted Stock Trust Fund - Primary Beneficiary | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | |||
Aggregate assets | 9,949 | 6,405 | |
Aggregate liabilities | 9,949 | 6,405 | |
EIF Funds - Primary Beneficiary | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | |||
Aggregate assets | 3,749 | 4,627 | |
Aggregate liabilities | 0 | 0 | |
Total VIEs - Primary Beneficiary | |||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | |||
Aggregate assets | 184,624 | 225,374 | |
Aggregate liabilities | 39,109 | 49,793 | |
Assets: | |||
Assets segregated pursuant to regulations and other segregated assets | 7,547 | 8,525 | |
Receivables, other | 5,493 | 5,542 | |
Investments in real estate partnerships held by consolidated variable interest entities | 157,228 | 199,678 | |
Trust fund investment in RJF common stock | 9,948 | 6,404 | |
Prepaid expenses and other assets | 3,711 | 4,297 | |
Total assets | 183,927 | 224,446 | |
Liabilities and Equity: | |||
Trade and other payables | 13,231 | 12,424 | |
Intercompany payables | 9,918 | 6,400 | |
Loans payable of consolidated variable interest entities | 12,597 | 25,960 | |
Total liabilities | 35,746 | 44,784 | |
Equity | 6,094 | 6,121 | |
Noncontrolling interests | 142,087 | 173,541 | |
Total equity | 148,181 | 179,662 | |
Total liabilities and equity | 183,927 | 224,446 | |
Revenues: | |||
Interest | 2 | 2 | 1 |
Other | 46 | (817) | 1,334 |
Total revenues | 48 | (815) | 1,335 |
Interest expense | (1,021) | (1,879) | (2,900) |
Net revenues | (973) | (2,694) | (1,565) |
Non-interest expenses | 42,507 | 38,179 | 40,819 |
Net income including noncontrolling interests | (43,480) | (40,873) | (42,384) |
Net loss attributable to noncontrolling interests | (43,453) | (40,829) | (42,374) |
Net income attributable to Raymond James Financial, Inc. | (27) | (44) | $ (10) |
LIHTC Funds - Not Primary Beneficiary | |||
Variable interest entities, not primary beneficiary [Abstract] | |||
Aggregate assets | 4,111,813 | 3,317,594 | |
Aggregate liabilities | 1,406,453 | 951,465 | |
Our risk of loss | 83,155 | 42,244 | |
NMTC Funds | |||
Variable interest entities, not primary beneficiary [Abstract] | |||
Aggregate assets | 65,338 | 65,388 | |
Aggregate liabilities | 68 | 40 | |
Our risk of loss | 12 | 12 | |
Other Real Estate Limited Partnerships and LLCs - Not Primary Beneficiary | |||
Variable interest entities, not primary beneficiary [Abstract] | |||
Aggregate assets | 22,897 | 29,523 | |
Aggregate liabilities | 23,522 | 37,062 | |
Our risk of loss | 140 | 163 | |
Total VIEs - Not Primary Beneficiary | |||
Variable interest entities, not primary beneficiary [Abstract] | |||
Aggregate assets | 4,200,048 | 3,412,505 | |
Aggregate liabilities | 1,430,043 | 988,567 | |
Our risk of loss | 83,307 | 42,419 | |
Managed Funds | |||
Variable interest entities, not primary beneficiary [Abstract] | |||
Aggregate assets | 99,483 | 83,132 | |
Aggregate liabilities | 74 | 22 | |
Our risk of loss | $ 0 | $ 53 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 761,472 | $ 636,713 |
Less: Accumulated depreciation and amortization | (440,015) | (380,838) |
Total property and equipment, net | 321,457 | 255,875 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,150 | 20,104 |
Buildings, leasehold and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 260,800 | 241,457 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 200,947 | 179,952 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 271,864 | 189,227 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,711 | $ 5,973 |
GOODWILL AND IDENTIFIABLE INT94
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Schedule of Goodwill and Net Identifiable Intangible Asset Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 408,072 | $ 307,635 | $ 295,486 |
Identifiable intangible assets, net | 96,370 | 69,327 | |
Total goodwill and identifiable intangible assets, net | $ 504,442 | $ 376,962 |
GOODWILL AND IDENTIFIABLE INT95
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | $ 307,635 | $ 295,486 |
Additions | 95,363 | 12,149 |
Foreign currency translation | 5,074 | |
Goodwill (end of the period) | 408,072 | 307,635 |
Private client group | ||
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | 186,733 | 174,584 |
Additions | 86,351 | 12,149 |
Foreign currency translation | 2,437 | |
Goodwill (end of the period) | 275,521 | 186,733 |
Capital markets | ||
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | 120,902 | 120,902 |
Additions | 9,012 | 0 |
Foreign currency translation | 2,637 | |
Goodwill (end of the period) | 132,551 | $ 120,902 |
Deutsche WM | Private client group | ||
Goodwill [Roll Forward] | ||
Additions | $ 81,700 | |
Deutsche WM | Capital markets | ||
Goodwill [Roll Forward] | ||
Tax deductible amount period of recognition | 15 years | |
3Macs | Private client group | ||
Goodwill [Roll Forward] | ||
Additions | $ 4,700 |
GOODWILL AND IDENTIFIABLE INT96
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Quantitative Analysis of Goodwill (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2016USD ($)reporting_unit | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Number of reporting units | reporting_unit | 2 | |||
Goodwill | $ 408,072,000 | $ 307,635,000 | $ 295,486,000 | |
Impairment losses | $ 0 | |||
Private client group | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Goodwill | 275,521,000 | 186,733,000 | 174,584,000 | |
Capital markets | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Goodwill | $ 132,551,000 | $ 120,902,000 | $ 120,902,000 | |
Raymond James Ltd | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Goodwill | 33,037,000 | |||
Raymond James Ltd | Private client group | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Goodwill | 16,144,000 | |||
Raymond James Ltd | Capital markets | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Goodwill | $ 16,893,000 | |||
Income approach | Goodwill | Raymond James Ltd | Private client group | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair value inputs, discount rate | 14.00% | |||
Fair value inputs, weighted rate | 75.00% | |||
Income approach | Goodwill | Raymond James Ltd | Capital markets | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair value inputs, discount rate | 15.00% | |||
Fair value inputs, weighted rate | 75.00% | |||
Market approach | Goodwill | Raymond James Ltd | Private client group | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair vale inputs, revenue multiple | 1.2 | |||
Fair value inputs, earnings per share multiple | $ / shares | $ 12.4 | |||
Fair value inputs, weighted rate | 25.00% | |||
Market approach | Goodwill | Raymond James Ltd | Capital markets | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair vale inputs, revenue multiple | 1.1 | |||
Fair value inputs, earnings per share multiple | $ / shares | $ 14.4 | |||
Fair value inputs, weighted rate | 25.00% |
GOODWILL AND IDENTIFIABLE INT97
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Net Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Amortizable net intangible assets (beginning of the period) | $ 69,327 | $ 58,775 | $ 65,978 |
Additions | 38,056 | 18,838 | 408 |
Amortization expense | (10,127) | (8,286) | (7,611) |
Foreign currency translation | (799) | ||
Impairment losses | (87) | ||
Amortizable net intangible assets (end of the period) | 96,370 | 69,327 | 58,775 |
Private client group | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Amortizable net intangible assets (beginning of the period) | 18,182 | 8,611 | 9,191 |
Additions | 36,624 | 10,290 | 0 |
Amortization expense | (1,870) | (719) | (580) |
Foreign currency translation | 0 | ||
Impairment losses | 0 | ||
Amortizable net intangible assets (end of the period) | 52,936 | 18,182 | 8,611 |
Capital markets | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Amortizable net intangible assets (beginning of the period) | 32,532 | 37,975 | 43,474 |
Additions | 1,013 | 0 | 0 |
Amortization expense | (5,619) | (5,443) | (5,499) |
Foreign currency translation | 11 | ||
Impairment losses | 0 | ||
Amortizable net intangible assets (end of the period) | 27,937 | 32,532 | 37,975 |
Asset Management | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Amortizable net intangible assets (beginning of the period) | 17,137 | 10,996 | 12,329 |
Additions | 0 | 7,974 | 0 |
Amortization expense | (2,226) | (1,833) | (1,333) |
Foreign currency translation | (810) | ||
Impairment losses | 0 | ||
Amortizable net intangible assets (end of the period) | 14,101 | 17,137 | 10,996 |
RJ Bank | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Amortizable net intangible assets (beginning of the period) | 1,476 | 1,193 | 984 |
Additions | 419 | 574 | 408 |
Amortization expense | (412) | (291) | (199) |
Foreign currency translation | 0 | ||
Impairment losses | (87) | ||
Amortizable net intangible assets (end of the period) | $ 1,396 | $ 1,476 | $ 1,193 |
Useful life | 10 years | ||
Deutsche WM | Private client group | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted average useful life | 12 years | ||
Mummert | Capital markets | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted average useful life | 1 year | ||
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted average useful life | 15 years | ||
Trade name | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted average useful life | 4 years | ||
Seller relationship agreements | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted average useful life | 6 years | ||
Non-compete agreements | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted average useful life | 3 years |
GOODWILL AND IDENTIFIABLE INT98
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Intangible Assets, by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 131,546 | $ 95,771 |
Accumulated amortization | (35,176) | (26,444) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 99,470 | 75,217 |
Accumulated amortization | (22,895) | (17,759) |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 8,172 | 4,278 |
Accumulated amortization | (499) | (111) |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 12,630 | 12,630 |
Accumulated amortization | (10,280) | (7,754) |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 516 | 561 |
Accumulated amortization | (73) | (23) |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 3,314 | 1,018 |
Accumulated amortization | (612) | (206) |
Seller relationship agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 5,300 | 0 |
Accumulated amortization | (69) | 0 |
Mortgage servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 2,144 | 2,067 |
Accumulated amortization | $ (748) | $ (591) |
GOODWILL AND IDENTIFIABLE INT99
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, Projected Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2,017 | $ 12,947 | |||
2,018 | 11,156 | |||
2,019 | 10,675 | |||
2,020 | 9,895 | |||
2,021 | 9,104 | |||
Thereafter | 42,593 | |||
Total future amortization expense | $ 96,370 | $ 69,327 | $ 58,775 | $ 65,978 |
BANK DEPOSITS (Details)
BANK DEPOSITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Bank deposits: | |||
NOW accounts | $ 4,958 | $ 4,752 | |
Demand deposits (non-interest bearing) | 7,264 | 9,295 | |
Savings and money market accounts | 13,935,089 | 11,550,917 | |
Certificates of deposit | 315,236 | 354,917 | |
Total bank deposits | $ 14,262,547 | $ 11,919,881 | |
Weighted-average rate [Abstract] | |||
NOW accounts, weighted-average rate (in hundredths) | 0.01% | 0.01% | |
Demand deposits (non-interest-bearing), weighted-average rate (in hundredths) | 0.00% | 0.00% | |
Savings and money market accounts, weighted-average rate (in hundredths) | 0.05% | 0.02% | |
Certificates of deposit, weighted-average rate (in hundredths) | 1.55% | 1.64% | |
Total bank deposits, weighted-average rate (in hundredths) | 0.08% | 0.07% | |
Bank Deposits [Line Items] | |||
Related party deposit liabilities | $ 353,000 | $ 458,000 | |
Time deposit amount that exceeds FDIC insurance limit | 21,900 | ||
Scheduled maturities of certificates of deposit, denominations greater than or equal to $100,000 [Abstract] | |||
Three months or less | 14,252 | 6,206 | |
Over three through six months | 14,191 | 11,731 | |
Over six through twelve months | 15,452 | 18,341 | |
Over one through two years | 32,816 | 43,133 | |
Over two through three years | 43,730 | 33,556 | |
Over three through four years | 58,425 | 51,140 | |
Over four through five years | 26,173 | 63,351 | |
Total certificates of deposit, denominations greater than or equal to 100,000 | 205,039 | 227,458 | |
Scheduled maturities of certificates of deposit, denominations less than 100,000 [Abstract] | |||
Three months or less | 12,663 | 7,610 | |
Over three through six months | 9,750 | 7,304 | |
Over six through twelve months | 12,321 | 14,807 | |
Over one through two years | 11,060 | 33,163 | |
Over two through three years | 22,148 | 10,825 | |
Over three through four years | 28,863 | 23,616 | |
Over four through five years | 13,392 | 30,134 | |
Total certificates of deposit, denominations less than 100,000 | 110,197 | 127,459 | |
Interest expense on deposits [Abstract] | |||
Certificates of deposit | 5,402 | 5,839 | $ 6,126 |
Money market, savings and NOW accounts (1) | 4,816 | 2,543 | 1,833 |
Total interest expense on deposits | 10,218 | 8,382 | $ 7,959 |
RJF Parent Company | |||
Bank Deposits [Line Items] | |||
Related party deposit liabilities | $ 350,000 | $ 451,000 |
OTHER BORROWINGS, Schedule of O
OTHER BORROWINGS, Schedule of Other Borrowings (Details) | 12 Months Ended | ||
Sep. 30, 2016USD ($)advance | Sep. 30, 2015USD ($)advance | Aug. 31, 2015USD ($) | |
Other Borrowings [Abstract] | |||
Total other borrowings | $ 608,658,000 | $ 703,065,000 | |
United States | Minimum | |||
Other Borrowings [Abstract] | |||
Revolving credit agreements, interest rates during the year | 0.18% | ||
United States | Maximum | |||
Other Borrowings [Abstract] | |||
Revolving credit agreements, interest rates during the year | 2.85% | ||
Canada | Minimum | |||
Other Borrowings [Abstract] | |||
Revolving credit agreements, interest rates during the year | 1.95% | ||
LIBOR | Revolving Credit Facility | |||
Other Borrowings [Abstract] | |||
Revolving credit agreement basis spread on variable rate | 1.75% | ||
RJF Credit Facility | Revolving Credit Facility | |||
Other Borrowings [Abstract] | |||
Borrowings outstanding on lines of credit | $ 0 | ||
Revolving credit agreement maximum borrowing capacity | $ 300,000,000 | ||
Revolving credit agreement commitment fee percentage | 0.25% | ||
ClariVest Asset Management | |||
Other Borrowings [Abstract] | |||
Borrowings outstanding on lines of credit | $ 267,000 | 0 | |
Revolving credit agreement maximum borrowing capacity | $ 500,000 | ||
Revolving credit agreements, interest rates during the year | 4.45% | ||
ClariVest Asset Management | Prime Rate | |||
Other Borrowings [Abstract] | |||
Revolving credit agreement basis spread on variable rate | 1.00% | ||
Secured Debt | |||
Other Borrowings [Abstract] | |||
Borrowings outstanding on lines of credit | $ 0 | 115,000,000 | |
Unsecured Debt | |||
Other Borrowings [Abstract] | |||
Borrowings outstanding on lines of credit | 0 | 349,000 | |
Federal Home Loan Bank Advances | |||
Other Borrowings [Abstract] | |||
Borrowings outstanding on lines of credit | $ 575,000,000 | $ 550,000,000 | |
Number of FHLB advances | advance | 3 | 2 | |
Federal Home Loan Bank Advances | Weighted Average | |||
Other Borrowings [Abstract] | |||
FHLB advances weighted average interest rate | 1.01% | ||
Federal Home Loan Bank Advances | FHLB Advance One Maturing September 2018 | |||
Other Borrowings [Abstract] | |||
Debt instrument, face amount | $ 250,000,000 | ||
Federal Home Loan Bank Advances | FHLB Advance Two Maturing September 2018 | |||
Other Borrowings [Abstract] | |||
Debt instrument, face amount | 300,000,000 | ||
Federal Home Loan Bank Advances | FHLB Advance Maturing October 2020 | |||
Other Borrowings [Abstract] | |||
Debt instrument, face amount | $ 25,000,000 | ||
Interest rate (in hundredths) | 3.40% | ||
Federal Home Loan Bank Advances | FHLB Advance One Maturing March 2017 | |||
Other Borrowings [Abstract] | |||
FHLB advance individual amount of loan | $ 250,000,000 | ||
Mortgages | 5.70% mortgage notes payable on our headquarters office complex, due 2023 | |||
Other Borrowings [Abstract] | |||
Mortgage notes payable | $ 33,391,000 | $ 37,716,000 | |
Book value of collateral securing debt | $ 44,700,000 | ||
Interest rate (in hundredths) | 5.70% |
OTHER BORROWINGS, Schedule of F
OTHER BORROWINGS, Schedule of Fiscal Maturity of Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Other Borrowings | $ 608,658 | $ 703,065 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase | 193,229 | $ 332,536 |
Other Borrowings | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,017 | 4,578 | |
2,018 | 555,113 | |
2,019 | 5,130 | |
2,020 | 5,430 | |
2,021 | 30,748 | |
Thereafter | 7,659 | |
Other Borrowings | $ 608,658 |
LOANS PAYABLE OF CONSOLIDATE103
LOANS PAYABLE OF CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016USD ($)variable_Interest_entity | Sep. 30, 2015USD ($) | |
Loans Payable of Consolidated Variable Interest Entities [Abstract] | ||
Number of entities consolidated with non-recourse loans | variable_Interest_entity | 2 | |
Imputed interest rates, minimum (in hundredths) | 5.17% | |
Imputed interest rates, maximum (in hundredths) | 6.38% | |
Loans Payable [Abstract] | ||
Current portion of loans payable | $ 8,306 | $ 13,363 |
Long-term portion of loans payable | 4,291 | 12,597 |
Total loans payable | 12,597 | 25,960 |
Contractual maturities of loans of consolidated variable interest entities [Abstract] | ||
2,017 | 8,306 | |
2,018 | 3,613 | |
2,019 | 678 | |
Total loans payable | $ 12,597 | $ 25,960 |
SENIOR NOTES PAYABLE, Schedule
SENIOR NOTES PAYABLE, Schedule of Senior Notes Payable (Details) - Senior Notes - USD ($) | Sep. 30, 2016 | Jul. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2012 | Apr. 30, 2011 | Aug. 31, 2009 |
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 1,700,000,000 | $ 1,150,000,000 | ||||
Unaccreted discount | (1,601,000) | (778,000) | ||||
Debt issuance costs | (17,812,000) | (11,652,000) | ||||
Total senior notes payable | 1,680,587,000 | 1,137,570,000 | ||||
Senior Notes Due 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 0 | 250,000,000 | ||||
Aggregate principal amount of the notes redeemed | $ 250,000,000 | |||||
Interest rate (in hundredths) | 4.25% | |||||
Senior Notes Due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 300,000,000 | 300,000,000 | ||||
Aggregate principal amount of the notes redeemed | $ 300,000,000 | |||||
Interest rate (in hundredths) | 8.60% | |||||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | |||||
Basis spread used in determining redemption price (in basis points) | 0.50% | |||||
Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 250,000,000 | 250,000,000 | ||||
Aggregate principal amount of the notes redeemed | $ 250,000,000 | |||||
Interest rate (in hundredths) | 5.625% | |||||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | |||||
Basis spread used in determining redemption price (in basis points) | 0.50% | |||||
Senior Notes Due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 500,000,000 | 0 | ||||
Aggregate principal amount of the notes redeemed | $ 500,000,000 | |||||
Interest rate (in hundredths) | 3.625% | |||||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | |||||
Basis spread used in determining redemption price (in basis points) | 0.35% | |||||
Senior Notes Due 2042 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 350,000,000 | 350,000,000 | ||||
Aggregate principal amount of the notes redeemed | $ 350,000,000 | |||||
Interest rate (in hundredths) | 6.90% | |||||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | |||||
Senior Notes Due 2046 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 300,000,000 | $ 0 | ||||
Aggregate principal amount of the notes redeemed | $ 300,000,000 | |||||
Interest rate (in hundredths) | 4.95% | |||||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | |||||
Basis spread used in determining redemption price (in basis points) | 0.45% |
SENIOR NOTES PAYABLE, Fiscal Ye
SENIOR NOTES PAYABLE, Fiscal Year Maturity (Details) - Corporate obligations $ in Thousands | Sep. 30, 2016USD ($) |
Contractual Maturities of Senior Notes Payable [Abstract] | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 300,000 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 1,400,000 |
Total | $ 1,700,000 |
DERIVATIVE FINANCIAL INSTRUM106
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | 12 Months Ended | ||
Sep. 30, 2016USD ($)designated_hedge | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Derivative [Line Items] | |||
Receivable for uncollectible derivative transaction revenues | $ 7,000,000 | $ 7,000,000 | |
Derivative collateral obligation to return cash | 33,000,000 | 44,000,000 | |
Derivative collateral right to reclaim cash | 3,000,000 | 26,000,000 | |
Maximum loss exposure on interest rate derivatives | 38,000,000 | ||
Hedge ineffectiveness | 0 | ||
Gain (loss) excluded from assessment of hedge effectiveness | 0 | ||
Total (losses) gains recognized in AOCI, net of taxes | (18,554,000) | 55,681,000 | $ 29,376,000 |
RJ Bank | |||
Derivative [Line Items] | |||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ (5,800,000) | ||
Maximum length of time hedged in cash flow hedge | 10 years | ||
Forward foreign exchange contracts | |||
Derivative [Line Items] | |||
Total (losses) gains recognized in AOCI, net of taxes | $ (6,721,000) | 60,331,000 | 29,376,000 |
Interest rate contract | |||
Derivative [Line Items] | |||
Total (losses) gains recognized in AOCI, net of taxes | $ (11,833,000) | $ (4,650,000) | $ 0 |
OTC Derivatives | |||
Derivative [Line Items] | |||
Number of derivatives designated as fair value hedges | designated_hedge | 0 | ||
Number of derivatives designated as cash flow hedges | designated_hedge | 0 | ||
Derivative instruments associated with offsetting matched book positions | |||
Derivative [Line Items] | |||
Number of derivatives designated as fair value hedges | designated_hedge | 0 | ||
Number of derivatives designated as cash flow hedges | designated_hedge | 0 |
DERIVATIVE FINANCIAL INSTRUM107
DERIVATIVE FINANCIAL INSTRUMENTS, Derivative Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (losses) gains recognized in AOCI, net of taxes | $ (18,554) | $ 55,681 | $ 29,376 |
Forward foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (losses) gains recognized in AOCI, net of taxes | (6,721) | 60,331 | 29,376 |
Interest rate contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (losses) gains recognized in AOCI, net of taxes | $ (11,833) | $ (4,650) | $ 0 |
DERIVATIVE FINANCIAL INSTRUM108
DERIVATIVE FINANCIAL INSTRUMENTS, Balance Sheet Location (Details) CAD in Thousands, $ in Thousands | Sep. 30, 2016USD ($) | Sep. 30, 2016CAD | Sep. 30, 2015USD ($) | Sep. 30, 2015CAD |
Designated as hedging instruments | Forward foreign exchange contracts | Other assets | ||||
Asset derivatives [Abstract] | ||||
Notional amount | CAD | CAD 988,200 | CAD 752,600 | ||
Fair value | $ 1,396 | $ 613 | ||
Designated as hedging instruments | Interest rate contract with denominated notional amount in USD | Trade and other payables | ||||
Liabilities derviatives [Abstract] | ||||
Notional amount | 550,000 | 300,000 | ||
Fair value | 26,671 | 7,545 | ||
Derivatives not designated as hedging instruments | Forward foreign exchange contracts | Other assets | ||||
Asset derivatives [Abstract] | ||||
Notional amount | CAD | 411,300 | 214,300 | ||
Fair value | 620 | 304 | ||
Derivatives not designated as hedging instruments | Interest rate contract with denominated notional amount in CAD | Trading instruments | ||||
Asset derivatives [Abstract] | ||||
Notional amount | CAD | 121,715 | 74,873 | ||
Fair value | 9,760 | 2,612 | ||
Derivatives not designated as hedging instruments | Interest rate contract with denominated notional amount in CAD | Trading instruments sold | ||||
Liabilities derviatives [Abstract] | ||||
Notional amount | CAD | CAD 133,108 | CAD 136,710 | ||
Fair value | 6,398 | 4,865 | ||
Derivatives not designated as hedging instruments | Interest rate contract with denominated notional amount in USD | Trading instruments | ||||
Asset derivatives [Abstract] | ||||
Notional amount | 2,036,233 | 2,473,946 | ||
Fair value | 153,482 | 130,095 | ||
Derivatives not designated as hedging instruments | Interest rate contract with denominated notional amount in USD | Derivative instruments associated with offsetting matched book positions | ||||
Asset derivatives [Abstract] | ||||
Notional amount | 1,469,295 | 1,649,863 | ||
Fair value | 422,196 | 389,457 | ||
Liabilities derviatives [Abstract] | ||||
Notional amount | 1,469,295 | 1,649,863 | ||
Fair value | 422,196 | 389,457 | ||
Derivatives not designated as hedging instruments | Interest rate contract with denominated notional amount in USD | Trading instruments sold | ||||
Liabilities derviatives [Abstract] | ||||
Notional amount | 1,997,100 | 1,906,766 | ||
Fair value | 145,296 | 104,255 | ||
Derivatives not designated as hedging instruments | Deutsche bank restricted stock derivative | ||||
Liabilities derviatives [Abstract] | ||||
Fair value | 17,769 | |||
Derivatives not designated as hedging instruments | Deutsche bank restricted stock derivative | Compensation, commissions and benefits (gain) | ||||
Liabilities derviatives [Abstract] | ||||
Notional amount | 17,769 | 0 | ||
Fair value | $ 17,769 | $ 0 |
DERIVATIVE FINANCIAL INSTRUM109
DERIVATIVE FINANCIAL INSTRUMENTS, Income Statement Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of share held as an economic hedge (in shares) | 900,000 | ||
Derivatives not designated as hedging instruments | Net trading profits | Interest rate contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount recognized during the | $ 2,819 | $ 3,107 | $ 1,554 |
Derivatives not designated as hedging instruments | Other (loss) revenues | Interest rate contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount recognized during the | 92 | 901 | 712 |
Derivatives not designated as hedging instruments | Other (loss) revenues | Forward foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount recognized during the | (2,662) | 20,459 | 5,694 |
Derivatives not designated as hedging instruments | Compensation, commissions and benefits (gain) | Deutsche bank restricted stock derivative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount recognized during the | $ (2,457) | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUM110
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS, Risk (Details) $ in Millions | Sep. 30, 2016USD ($)agency |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Debt, minimum number of agencies required to maintain an investment grade rating (or more) | agency | 1 |
Derivative in liability position fair value | $ 3 |
Derivative in liability position posted collateral | 2 |
Additional collateral, aggregate fair value | $ 1 |
DISCLOSURE OF OFFSETTING ASS111
DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL ENCUMBERED ASSETS, AND REPURCHASE AGREEMENTS, Offsetting (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Securities purchased under agreements to resell and other collateralized financings [Abstract]: | ||
Gross amounts of recognized assets | $ 470,222 | $ 474,144 |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | 470,222 | 474,144 |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | (470,222) | (474,144) |
Gross amounts not offset in the Statement of Financial Condition, cash collateral (received) paid | 0 | 0 |
Net amount | 0 | 0 |
Derivative assets [Abstract]: | ||
Derivative instruments associated with offsetting matched book positions | 422,196 | 389,457 |
Net amounts presented in the Statements of Financial Condition | 55,703 | 42,086 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | (33,000) | (44,000) |
Stock borrowed [Abstract]: | ||
Gross amounts of recognized assets | 170,860 | 124,373 |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | 170,860 | 124,373 |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | (167,169) | (120,957) |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 0 |
Net amount | 3,691 | 3,416 |
Total assets [Abstract]: | ||
Gross amounts of recognized assets | 1,228,536 | 1,121,598 |
Gross amounts offset in the Statements of Financial Condition | (107,539) | (90,621) |
Net amounts presented in the Statements of Financial Condition | 1,120,997 | 1,030,977 |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | (1,088,615) | (997,167) |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 0 |
Net amount | 32,382 | 33,810 |
Securities sold under agreements to repurchase [Abstract]: | ||
Gross amounts of recognized (liabilities) | (193,229) | (332,536) |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | (193,229) | (332,536) |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 193,229 | 332,536 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 0 |
Net amount | 0 | 0 |
Derivative liabilities [Abstract]: | ||
Derivative instruments associated with offsetting matched book positions | (422,196) | (389,457) |
Net amounts presented in the Statements of Financial Condition | (8,835) | (20,239) |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 3,000 | 26,000 |
Stock loaned [Abstract]: | ||
Gross amounts of recognized (liabilities) | (677,761) | (478,573) |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | (677,761) | (478,573) |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 664,870 | 472,379 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 0 |
Net amount | (12,891) | (6,194) |
Total liabilities [Abstract]: | ||
Gross amounts of recognized (liabilities) | (1,489,320) | (1,317,231) |
Gross amounts offset in the Statements of Financial Condition | 142,859 | 88,881 |
Net amounts presented in the Statements of Financial Condition | (1,346,461) | (1,228,350) |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 1,282,732 | 1,197,900 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 26,671 | 14,944 |
Net amount | (37,058) | (15,506) |
Securities purchased under agreements to resell collateral obligation to return securities | 486,000 | 499,000 |
Fair value of securities sold under agreements to repurchase | $ 200,000 | 346,000 |
Number of share held as an economic hedge (in shares) | 900,000 | |
Designated as hedging instruments | Interest rate contract with denominated notional amount in USD | ||
Total liabilities [Abstract]: | ||
Cash pledged as collateral | $ 8,000 | 18,000 |
Designated as hedging instruments | Forward foreign exchange contracts | Other assets | ||
Derivative assets [Abstract]: | ||
Derivative contracts asset, gross | 1,396 | 613 |
Designated as hedging instruments | RJ Bank | Interest rate contract with denominated notional amount in USD | ||
Derivative liabilities [Abstract]: | ||
Gross amounts recognized (liabilities) | (26,671) | (7,545) |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | (26,671) | (7,545) |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 0 | 0 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 26,671 | 7,545 |
Net amount | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Derivative assets [Abstract]: | ||
Derivative instruments associated with offsetting matched book positions | 422,196 | 389,457 |
Derivative liabilities [Abstract]: | ||
Derivative instruments associated with offsetting matched book positions | (422,196) | (389,457) |
Derivatives not designated as hedging instruments | Deutsche bank restricted stock derivative | ||
Derivative liabilities [Abstract]: | ||
Gross amounts recognized (liabilities) | (17,769) | |
Gross amounts offset in the Statements of Financial Condition | 0 | |
Net amounts presented in the Statements of Financial Condition | (17,769) | |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 0 | |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | |
Net amount | (17,769) | |
Derivatives not designated as hedging instruments | Derivative instruments associated with offsetting matched book positions | ||
Derivative assets [Abstract]: | ||
Derivative contracts asset, gross | 422,196 | 389,457 |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | (422,196) | (389,457) |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 0 |
Net amount | 0 | 0 |
Derivative liabilities [Abstract]: | ||
Gross amounts recognized (liabilities) | (422,196) | (389,457) |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 422,196 | 389,457 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 0 |
Net amount | 0 | 0 |
Derivatives not designated as hedging instruments | Forward foreign exchange contracts | Other assets | ||
Derivative assets [Abstract]: | ||
Derivative contracts asset, gross | 620 | 304 |
Derivatives not designated as hedging instruments | Over the counter | Interest rate contract with denominated notional amount in USD | ||
Derivative assets [Abstract]: | ||
Derivative contracts asset, gross | 130,095 | |
Gross amounts offset in the Statements of Financial Condition | (90,621) | |
Net amounts presented in the Statements of Financial Condition | 39,474 | |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | (12,609) | |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | |
Net amount | 26,865 | |
Derivative liabilities [Abstract]: | ||
Gross amounts recognized (liabilities) | (145,296) | (104,255) |
Gross amounts offset in the Statements of Financial Condition | 142,859 | 88,881 |
Net amounts presented in the Statements of Financial Condition | (2,437) | (15,374) |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 2,437 | 3,528 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 7,399 |
Net amount | 0 | (4,447) |
Derivatives not designated as hedging instruments | Over the counter | Interest rate contract with denominated notional amount in CAD | ||
Derivative assets [Abstract]: | ||
Derivative contracts asset, gross | 9,760 | 2,612 |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | 9,760 | 2,612 |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 0 | 0 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 0 |
Net amount | 9,760 | 2,612 |
Derivative liabilities [Abstract]: | ||
Gross amounts recognized (liabilities) | (6,398) | (4,865) |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | (6,398) | (4,865) |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 0 | 0 |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | 0 |
Net amount | (6,398) | (4,865) |
Derivatives not designated as hedging instruments | RJ Bank | Over the counter | Interest rate contract with denominated notional amount in USD | ||
Derivative assets [Abstract]: | ||
Derivative contracts asset, gross | 153,482 | |
Gross amounts offset in the Statements of Financial Condition | (107,539) | |
Net amounts presented in the Statements of Financial Condition | 45,943 | |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | (29,028) | |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | |
Net amount | 16,915 | |
Derivatives designated as hedging instruments and not designated as hedging instruments | Forward foreign exchange contracts | ||
Derivative assets [Abstract]: | ||
Derivative contracts asset, gross | 2,016 | |
Gross amounts offset in the Statements of Financial Condition | 0 | |
Net amounts presented in the Statements of Financial Condition | 2,016 | |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 0 | |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | |
Net amount | 2,016 | |
Derivatives designated as hedging instruments and not designated as hedging instruments | RJ Bank | Interest rate contract with denominated notional amount in CAD | ||
Total liabilities [Abstract]: | ||
Cash pledged as collateral | 42,000 | 15,000 |
Derivatives designated as hedging instruments and not designated as hedging instruments | RJ Bank | Forward foreign exchange contracts | ||
Derivative assets [Abstract]: | ||
Derivative contracts asset, gross | 917 | |
Gross amounts offset in the Statements of Financial Condition | 0 | |
Net amounts presented in the Statements of Financial Condition | 917 | |
Gross amounts not offset in the Statements of Financial Condition, Financial Instruments | 0 | |
Gross amounts not offset in the Statements of Financial Condition, Cash collateral (received) paid | 0 | |
Net amount | 917 | |
Recurring | ||
Derivative assets [Abstract]: | ||
Gross amounts offset in the Statements of Financial Condition | (107,539) | (90,621) |
Derivative liabilities [Abstract]: | ||
Gross amounts offset in the Statements of Financial Condition | 142,859 | 88,881 |
Derivative instruments associated with offsetting matched book positions | (422,196) | $ (389,457) |
Recurring | Deutsche bank restricted stock derivative | ||
Total liabilities [Abstract]: | ||
Other investments, share based compensation economic hedge | $ 12,000 |
DISCLOSURE OF OFFSETTING ASS112
DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL ENCUMBERED ASSETS, AND REPURCHASE AGREEMENTS, Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Collateral Received that Can be Resold or Repledged [Abstract] | ||
Collateral we received that is available to be delivered or repledged | $ 2,925,335 | $ 2,308,277 |
Collateral that we delivered or repledged | 1,536,393 | 1,122,540 |
Value of margin securities pledged to clearing organizations | 389,000 | 241,000 |
Securities reserve deposit required and made | $ 203,000 | $ 148,000 |
DISCLOSURE OF OFFSETTING ASS113
DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL ENCUMBERED ASSETS, AND REPURCHASE AGREEMENTS, Encumbered Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Financial instruments owned, at fair value, pledged to counterparties that: | ||
Had the right to deliver or repledge | $ 587,369 | $ 424,668 |
Did not have the right to deliver or repledge | 25,200 | 94,006 |
Fair value of securities pledged with a clearing organization | 19,000 | 30,000 |
Securities reserve deposit required and made | $ 203,000 | $ 148,000 |
DISCLOSURE OF OFFSETTING ASS114
DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL ENCUMBERED ASSETS, AND REPURCHASE AGREEMENTS, Repurchase Agreements, Securities Lending Transactions & Repurchase-to-Maturity Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | $ 193,229 | $ 332,536 |
Total | 870,990 | 811,109 |
Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote | 870,990 | 811,109 |
Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote | 0 | 0 |
Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 99,056 | 216,844 |
Agency MBS and CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 94,173 | 115,692 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 677,761 | 478,573 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 185,226 | 324,535 |
Total | 862,987 | 803,108 |
Overnight and continuous | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 92,804 | 211,594 |
Overnight and continuous | Agency MBS and CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 92,422 | 112,941 |
Overnight and continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 677,761 | 478,573 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 8,003 | 8,001 |
Total | 8,003 | 8,001 |
Up to 30 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 6,252 | 5,250 |
Up to 30 days | Agency MBS and CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 1,751 | 2,751 |
Up to 30 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
30-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 0 | 0 |
Total | 0 | 0 |
30-90 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 0 | 0 |
30-90 days | Agency MBS and CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 0 | 0 |
30-90 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 0 | 0 |
Total | 0 | 0 |
Greater than 90 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 0 | 0 |
Greater than 90 days | Agency MBS and CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 0 | 0 |
Greater than 90 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | $ 0 | $ 0 |
INCOME TAXES, Income Tax Alloca
INCOME TAXES, Income Tax Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Recorded in: | |||
Income including noncontrolling interests | $ 271,293 | $ 296,034 | $ 267,797 |
Equity, arising from compensation expense for tax purposes which is (in excess of) less than amounts recognized for financial reporting purposes | (35,121) | 8,115 | (7,437) |
Equity, arising from cumulative currency translation adjustments and net investment hedges recorded through other comprehensive income (loss) (“OCI”) | (3,525) | 31,078 | 15,142 |
Equity, arising from available for sale securities recorded through OCI | (3,295) | (2,246) | 3,694 |
Equity, arising from cash flow hedges recorded through OCI | (7,252) | (2,850) | 0 |
Total | $ 222,100 | $ 330,131 | $ 279,196 |
INCOME TAXES, Provision (Benefi
INCOME TAXES, Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Current: | |||
Federal | $ 287,350 | $ 266,359 | $ 260,504 |
State and local | 32,101 | 48,130 | 29,904 |
Foreign | 10,640 | 5,007 | 12,560 |
Current provision (benefit) for income taxes | 330,091 | 319,496 | 302,968 |
Deferred: | |||
Federal | (51,383) | (20,567) | (35,262) |
State and local | (6,267) | (5,127) | (410) |
Foreign | (1,148) | 2,232 | 501 |
Deferred provision (benefit) for income taxes | (58,798) | (23,462) | (35,171) |
Provision for income taxes | $ 271,293 | $ 296,034 | $ 267,797 |
INCOME TAXES, Effective Income
INCOME TAXES, Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income tax reconciliation [Abstract] | |||
Provision calculated at statutory rate | $ 280,225 | $ 279,361 | $ 261,816 |
State income tax, net of federal benefit | 13,864 | 29,224 | 18,826 |
Tax-exempt interest income | (6,969) | (4,335) | (2,146) |
(Income) losses associated with company-owned life insurance which are not (subject to tax) tax deductible | (9,098) | 3,040 | (6,365) |
General business tax credits | (8,559) | (7,166) | (3,910) |
Other, net | 1,830 | (4,090) | (424) |
Provision for income taxes | $ 271,293 | $ 296,034 | $ 267,797 |
Effective income tax rate reconciliation (as a percent): | |||
Provision calculated at statutory rate | 35.00% | 35.00% | 35.00% |
State income tax, net of federal benefit | 1.70% | 3.60% | 2.50% |
Tax-exempt interest income | (0.90%) | (0.50%) | (0.30%) |
(Income) losses associated with company-owned life insurance which are not (subject to tax) tax deductible | (1.10%) | 0.40% | (0.80%) |
General business tax credits | (1.00%) | (0.90%) | (0.50%) |
Other, net | 0.20% | (0.50%) | (0.10%) |
Total provision for income tax | 33.90% | 37.10% | 35.80% |
INCOME TAXES, Components of Inc
INCOME TAXES, Components of Income Excluding Noncontrolling Interests Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
U.S. and foreign components of income before income taxes [Abstract] | |||
U.S. | $ 765,420 | $ 782,146 | $ 705,878 |
Foreign | 35,222 | 16,028 | 42,167 |
Income excluding noncontrolling interest and before provision for income taxes | $ 800,642 | $ 798,174 | $ 748,045 |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred tax assets: | ||
Deferred compensation | $ 192,397 | $ 150,949 |
Allowances for loan losses and reserves for unfunded commitments | 78,552 | 68,445 |
Unrealized loss associated with foreign currency translations | 22,184 | 22,892 |
Unrealized loss associated with available for sale securities | 4,314 | 7,764 |
Accrued expenses | 44,419 | 40,075 |
Other | 24,897 | 28,575 |
Total gross deferred tax assets | 366,763 | 318,700 |
Less: valuation allowance | (9) | (9) |
Total deferred tax assets | 366,754 | 318,691 |
Deferred tax liabilities: | ||
Partnership investments | (8,518) | (13,476) |
Goodwill and other intangibles | (26,384) | (23,967) |
Undistributed earnings of foreign subsidiaries | (9,636) | (12,592) |
Other | (192) | (1,757) |
Total deferred tax liabilities | (44,730) | (51,792) |
Net deferred tax assets | 322,024 | 266,899 |
Cumulative amount of undistributed earnings attributable to foreign subsidiaries | 204,000 | |
Income tax receivable current | 48,000 | 36,000 |
Accrued income taxes, current | $ 29,000 | $ 47,000 |
INCOME TAXES, Unrecognized Tax
INCOME TAXES, Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Increase (decrease) in accrued interest expense related to unrecognized tax benefits | $ (1,000) | ||
Income tax penalty expense | (700) | ||
Income tax penalties and interest accrued | 4,000 | $ 6,000 | |
Changes in the liability for unrecognized tax benefits [Roll Forward] | |||
Balance for uncertain tax positions at beginning of year | 22,454 | 15,804 | $ 13,663 |
Increases for tax positions related to the current year | 6,496 | 4,954 | 3,228 |
Increases for tax positions related to prior years | 1,284 | 3,466 | 2,455 |
Decreases for tax positions related to prior years | (1,592) | (204) | (1,642) |
Decreases due to lapsed statute of limitations | (1,447) | (1,566) | (1,218) |
Decreases related to settlements | (5,022) | 0 | (682) |
Balance for uncertain tax positions at end of year | 22,173 | 22,454 | 15,804 |
Unrecognized tax benefits that would impact effective tax rate | 16,000 | $ 15,000 | $ 10,000 |
Unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | $ 2,000 |
COMMITMENTS, CONTINGENCIES A121
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) CAD in Millions, $ in Millions | Jul. 31, 2015 | Sep. 30, 2016USD ($)subsidiarycommitment | Apr. 30, 2016joint_venture | Sep. 30, 2016USD ($)commitment | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2016CADcommitment |
Commitments [Line Items] | |||||||
Joint ventures | joint_venture | 2 | ||||||
Reserve for unfunded lending commitments | $ 11 | $ 11 | $ 10 | ||||
Underwriting commitment | |||||||
Commitments [Line Items] | |||||||
Number of open underwriting commitments | commitment | 7 | 7 | 7 | ||||
Amount of commitment | CAD | CAD 6 | ||||||
Loans to financial advisors and certain key revenue producers, not yet accepted | |||||||
Commitments [Line Items] | |||||||
Amount of commitment | $ 128 | $ 128 | |||||
Unfunded loans to financial advisors and certain key revenue producers, accepted | |||||||
Commitments [Line Items] | |||||||
Amount of commitment | 62 | 62 | |||||
RJ Bank syndicated loans | |||||||
Commitments [Line Items] | |||||||
Amount of purchased syndicated loans not yet settled | 122 | $ 122 | |||||
Settlement of purchased syndicated loans (in days) | 90 days | ||||||
Commitment to lend to RJTCF | |||||||
Commitments [Line Items] | |||||||
Amount of commitment | 225 | $ 225 | |||||
Cash funded to invest in loans or investments in project partnerships | 76 | $ 76 | |||||
Number of days that investments in project partnerships are typically sold (in days) | 90 days | ||||||
Independent venture capital or private equity partnerships commitment | |||||||
Commitments [Line Items] | |||||||
Amount of commitment | 42 | $ 42 | |||||
Internally sponsored private equity limited partnership commitment | |||||||
Commitments [Line Items] | |||||||
Unfunded commitments in which we control the general partner | 18 | 18 | |||||
Lease agreements commitments | |||||||
Operating Leases Fiscal Year Maturity: | |||||||
2,016 | 92 | 92 | |||||
2,017 | 81 | 81 | |||||
2,018 | 73 | 73 | |||||
2,019 | 61 | 61 | |||||
2,020 | 46 | 46 | |||||
Thereafter | 85 | 85 | |||||
Rental expense incurred under leases | 97 | $ 89 | $ 91 | ||||
Forward GNMA MBS purchase commitments | |||||||
Commitments [Line Items] | |||||||
Amount of commitment | 821 | $ 821 | |||||
Operating Leases Fiscal Year Maturity: | |||||||
Expected time of purchase (in days) | 90 days | ||||||
TBA securities | |||||||
Operating Leases Fiscal Year Maturity: | |||||||
Net liability fair value of TBA securities | 3 | $ 3 | |||||
Estimated fair value of the TBA security purchase commitment liability | $ 2 | $ 2 | |||||
Raymond James Ltd | Underwriting commitment | |||||||
Commitments [Line Items] | |||||||
Number of open underwriting commitments | commitment | 4 | 4 | 4 | ||||
Raymond James South American Holdings Inc | |||||||
Commitments [Line Items] | |||||||
Number of subsidiaries sold | subsidiary | 3 | ||||||
Subsidiary of RJ Bank | Commitment to lend to RJTCF | |||||||
Commitments [Line Items] | |||||||
Amount of commitment | $ 62 | $ 62 | |||||
Amount of commitment fulfilled | $ 58 | $ 58 | |||||
Contingent Consideration, Earn-Out Agreement | Minimum | The Producers Choice LLC | |||||||
Commitments [Line Items] | |||||||
Contingent consideration arrangements, range of outcomes, measurement period | 18 months | ||||||
Contingent Consideration, Earn-Out Agreement | Maximum | The Producers Choice LLC | |||||||
Commitments [Line Items] | |||||||
Contingent consideration arrangements, range of outcomes, measurement period | 3 years |
COMMITMENTS, CONTINGENCIES A122
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Guarantor Obligations (Details) | 12 Months Ended | ||
Sep. 30, 2016USD ($)Fund | Sep. 30, 2015USD ($) | Mar. 31, 2008USD ($) | |
Guarantees [Abstract] | |||
Number of funds offering guaranteed performance to various third-parties on certain obligations | Fund | 1 | ||
Low-income housing tax credit fund financing asset | $ 20,543,000 | $ 24,452,000 | |
Amount of liability related to the low-income housing tax credit fund financing asset | 20,500,000 | 24,500,000 | |
Project partnerships sold guarantee | |||
Guarantees [Abstract] | |||
Current exposure of guarantees | 2,000,000 | ||
Interest rate swap guarantee | |||
Guarantees [Abstract] | |||
Current exposure of guarantees | 14,000,000 | ||
Estimated total potential exposure of guarantee | 52,000,000 | ||
Performance guarantees for completion of trades with counterparties | |||
Guarantees [Abstract] | |||
Current exposure of guarantees | 0 | ||
Letter of credit guarantee | |||
Guarantees [Abstract] | |||
Current exposure of guarantees | $ 8,000,000 | ||
Raymond James and Associates Inc | |||
Guarantees [Abstract] | |||
Excess SIPC insured amount firm aggregate upper limit | 750,000,000 | ||
Excess SIPC Sub-limit firm aggregate per customer cash above basic SIPC | 1,900,000 | ||
Securities Industry Protection Corporation (SIPC) | |||
Guarantees [Abstract] | |||
SIPC fund securities per customer limit (up to) | 500,000 | ||
SIPC fund upper limit claims per customer for cash balances | 250,000 | ||
Delivery of certain tax credits and other tax benefits guarantee | |||
Guarantees [Abstract] | |||
Current exposure of guarantees | $ 23,000,000 | ||
Number of years under the guarantee to deliver a certain amount of tax credits and other tax benefits (in years) | 6 years | ||
Mortgages | 5.70% mortgage notes payable on our headquarters office complex, due 2023 | |||
Guarantees [Abstract] | |||
Mortgage notes payable | $ 33,391,000 | $ 37,716,000 |
COMMITMENTS, CONTINGENCIES A123
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Loss Contingencies (Details) | 12 Months Ended | |
Sep. 30, 2016USD ($)financial_advisorcivil_court_action | Sep. 30, 2015USD ($) | |
Loss Contingencies [Line Items] | ||
Indemnification asset | $ 35,325,000 | $ 143,144,000 |
Pending Litigation | Various Lawsuits | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | 0 | |
Estimate range of possible loss, portion not accrued | $ 10,000,000 | |
Pending Litigation | Jay Peak Litigation | ||
Loss Contingencies [Line Items] | ||
Loss contingency, number of financial advisors named as defendants | financial_advisor | 1 | |
Loss contingency, damages sought, misused funds value | $ 200,000,000 | |
Loss contingency, damages sought, misappropriated funds value | $ 50,000,000 | |
Loss contingency number of pending claims | civil_court_action | 6 | |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Indemnification liability for potential loss | $ 35,000,000 | |
Minimum | Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | 16,000,000 | |
Maximum | Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 51,000,000 |
OTHER COMPREHENSIVE (LOSS) I124
OTHER COMPREHENSIVE (LOSS) INCOME, Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net change in unrealized gain/loss on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | [1] | $ (5,576) | $ (3,325) | $ 6,021 |
Unrealized gain (loss) on currency translations, net of the impact of net investment hedges | [1] | 2,179 | (30,640) | (18,635) |
Unrealized loss on cash flow hedges | [1] | (11,833) | (4,650) | 0 |
Net other comprehensive (loss) income for the year, net of tax | $ (15,230) | $ (38,615) | $ (12,614) | |
[1] | All components of other comprehensive income (loss), net of tax, are attributable to Raymond James Financial, Inc. |
OTHER COMPREHENSIVE (LOSS) I125
OTHER COMPREHENSIVE (LOSS) INCOME, AOCI Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | $ 4,522,031 | ||
Net other comprehensive (loss) income for the year, net of tax | (15,230) | $ (38,615) | $ (12,614) |
Accumulated other comprehensive income (loss) as of year end | 4,914,096 | 4,522,031 | |
Net investment hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | 93,203 | 32,872 | |
Other comprehensive (loss) income before reclassifications and taxes | (10,743) | 96,499 | |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 0 | 0 | |
Pre-tax other comprehensive (loss) income | (10,743) | 96,499 | |
Income tax effect | 4,022 | (36,168) | |
Net other comprehensive (loss) income for the year, net of tax | (6,721) | 60,331 | |
Accumulated other comprehensive income (loss) as of year end | 86,482 | 93,203 | 32,872 |
Currency translations | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | (130,476) | (39,505) | |
Other comprehensive (loss) income before reclassifications and taxes | 9,397 | (96,061) | |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 0 | 0 | |
Pre-tax other comprehensive (loss) income | 9,397 | (96,061) | |
Income tax effect | (497) | 5,090 | |
Net other comprehensive (loss) income for the year, net of tax | 8,900 | (90,971) | |
Accumulated other comprehensive income (loss) as of year end | (121,576) | (130,476) | (39,505) |
Sub-total: net investment hedges and currency translations | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | (37,273) | (6,633) | |
Other comprehensive (loss) income before reclassifications and taxes | (1,346) | 438 | |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 0 | 0 | |
Pre-tax other comprehensive (loss) income | (1,346) | 438 | |
Income tax effect | 3,525 | (31,078) | |
Net other comprehensive (loss) income for the year, net of tax | 2,179 | (30,640) | |
Accumulated other comprehensive income (loss) as of year end | (35,094) | (37,273) | (6,633) |
Available for sale securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | 1,420 | 4,745 | |
Other comprehensive (loss) income before reclassifications and taxes | (9,231) | 2,863 | |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 360 | (8,434) | |
Pre-tax other comprehensive (loss) income | (8,871) | (5,571) | |
Income tax effect | 3,295 | 2,246 | |
Net other comprehensive (loss) income for the year, net of tax | (5,576) | (3,325) | |
Accumulated other comprehensive income (loss) as of year end | (4,156) | 1,420 | 4,745 |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | (4,650) | 0 | |
Other comprehensive (loss) income before reclassifications and taxes | (25,535) | (9,407) | |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 6,450 | 1,907 | |
Pre-tax other comprehensive (loss) income | (19,085) | (7,500) | |
Income tax effect | 7,252 | 2,850 | |
Net other comprehensive (loss) income for the year, net of tax | (11,833) | (4,650) | |
Accumulated other comprehensive income (loss) as of year end | (16,483) | (4,650) | 0 |
Accumulated other comprehensive (loss) income: | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | (40,503) | (1,888) | |
Other comprehensive (loss) income before reclassifications and taxes | (36,112) | (6,106) | |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 6,810 | (6,527) | |
Pre-tax other comprehensive (loss) income | (29,302) | (12,633) | |
Income tax effect | 14,072 | (25,982) | |
Net other comprehensive (loss) income for the year, net of tax | (15,230) | (38,615) | |
Accumulated other comprehensive income (loss) as of year end | $ (55,733) | $ (40,503) | $ (1,888) |
OTHER COMPREHENSIVE (LOSS) I126
OTHER COMPREHENSIVE (LOSS) INCOME, Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | $ (82,006) | $ (96,596) | $ (67,516) |
Interest expense | 117,077 | 107,954 | 104,091 |
Total before tax | (777,371) | (776,712) | (715,948) |
Provision for income taxes | 271,293 | 296,034 | 267,797 |
Net income attributable to Raymond James Financial, Inc. | (529,350) | (502,140) | $ (480,248) |
Available for sale securities | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total before tax | 6,810 | (6,527) | |
Provision for income taxes | (2,590) | 2,526 | |
Net income attributable to Raymond James Financial, Inc. | 4,220 | (4,001) | |
Available for sale securities | Reclassification out of Accumulated Other Comprehensive Income | Auction rate securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | 87 | (8,976) | |
Available for sale securities | Reclassification out of Accumulated Other Comprehensive Income | RJ Bank available for sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other | 273 | 542 | |
Interest rate contract | Available for sale securities | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ 6,450 | $ 1,907 |
INTEREST INCOME AND INTEREST127
INTEREST INCOME AND INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income: | |||
Margin balances | $ 68,712 | $ 67,573 | $ 68,454 |
Assets segregated pursuant to regulations and other segregated assets | 22,287 | 13,792 | 15,441 |
Bank loans, net of unearned income | 487,366 | 405,578 | 343,942 |
Available for sale securities | 7,596 | 5,100 | 6,560 |
Trading instruments | 19,362 | 19,450 | 17,883 |
Stock loan | 8,777 | 12,036 | 8,731 |
Loans to financial advisors | 8,207 | 7,056 | 6,427 |
Corporate cash and all other | 18,018 | 12,622 | 13,448 |
Total interest income | 640,325 | 543,207 | 480,886 |
Interest expense: | |||
Brokerage client liabilities | 2,084 | 940 | 1,269 |
Retail bank deposits | 10,218 | 8,382 | 7,959 |
Trading instruments sold but not yet purchased | 5,035 | 4,503 | 4,327 |
Stock borrow | 3,174 | 5,237 | 2,869 |
Borrowed funds | 12,957 | 6,079 | 3,939 |
Senior notes | 78,533 | 76,088 | 76,038 |
Interest expense of consolidated VIEs | 1,021 | 1,879 | 2,900 |
Other | 4,055 | 4,846 | 4,790 |
Total interest expense | 117,077 | 107,954 | 104,091 |
Net interest income | 523,248 | 435,253 | 376,795 |
Subtract: provision for loan losses | (28,167) | (23,570) | (13,565) |
Net interest income after provision for loan losses | $ 495,081 | $ 411,683 | $ 363,230 |
SHARE-BASED AND OTHER COMPEN128
SHARE-BASED AND OTHER COMPENSATION, ESOP (Details) - USD ($) shares in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Award requisite service period | 6 years | |
401(k) plan [Abstract] | ||
Employer match of first $1,000 of compensation deferred by each participant (in hundredths) | 75.00% | |
Employer match of first $1,000 of compensation deferred by each participant (in dollars) | $ 1,000 | |
Employer match of next $1,000 of compensation deferred by each participant (in hundredths) | 25.00% | |
Employer match of next $1,000 of compensation deferred by each participant (in dollars) | $ 1,000 | |
Employee Stock Ownership Plan ESOP | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of shares of common stock held by ESOP | 4,873 | 4,719 |
Market value of common stock held by the ESOP | $ 284,000,000 | |
Value of unearned (not yet vested) shares held by ESOP plan participants | $ 3,000,000 |
SHARE-BASED AND OTHER COMPEN129
SHARE-BASED AND OTHER COMPENSATION, Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Compensation Expense | $ 116.9 | $ 116.9 | $ 111.3 |
SHARE-BASED AND OTHER COMPEN130
SHARE-BASED AND OTHER COMPENSATION, 2012 Stock Incentive Plan (Details) | Sep. 30, 2016plan | Feb. 23, 2012shares |
Share-based compensation plans [Abstract] | ||
Number of share based compensation plans | 1 | |
Number of previous share based compensation plans | 6 | |
2012 Stock Incentive Plan | ||
Share-based compensation plans [Abstract] | ||
Number of shares available for grant | shares | 15,400,000 |
SHARE-BASED AND OTHER COMPEN131
SHARE-BASED AND OTHER COMPENSATION, Stock Option Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Expense and income tax benefits [Abstract] | |||
Excess tax benefit (reduction of prior tax benefit) from share-based payments | $ 35,121 | $ (8,115) | $ 7,437 |
2012 Stock Incentive Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of days within termination which options are exercisable (in days) | 45 days | ||
Expense and income tax benefits [Abstract] | |||
Total share-based expense | $ 10,114 | 10,169 | 9,068 |
Income tax benefits related to share-based expense | 769 | $ 811 | $ 667 |
Excess tax benefit (reduction of prior tax benefit) from share-based payments | $ 2,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield (in hundredths) | 1.41% | 1.30% | 1.33% |
Expected volatility (in hundredths) | 28.85% | 29.55% | 39.84% |
Risk-free interest rate (in hundredths) | 1.65% | 1.66% | 1.43% |
Expected lives (in years) | 5 years 4 months 14 days | 5 years 5 months 23 days | 5 years 6 months |
2012 Stock Incentive Plan | Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercisable period after grant date for options granted on or after August 21, 2008 | 84 months | ||
2012 Stock Incentive Plan | Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercisable period after grant date for options granted on or after August 21, 2008 | 36 months |
SHARE-BASED AND OTHER COMPEN132
SHARE-BASED AND OTHER COMPENSATION, Stock Option Activity (Details) - 2012 Stock Incentive Plan - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Options for shares (in shares): | |||
Outstanding - beginning of period | 4,061,354 | ||
Granted | 351,223 | ||
Exercised | (625,194) | ||
Forfeited | (76,910) | ||
Outstanding - end of period | 3,710,473 | 4,061,354 | |
Weighted-average exercise price (in dollars per share); | |||
Outstanding - beginning of period | $ 41.49 | ||
Granted | 56.46 | ||
Exercised | 29.25 | ||
Forfeited | 46.42 | ||
Outstanding - end of period | $ 44.88 | $ 41.49 | |
Weighted-average remaining contractual term (in years) | 3 years 6 months | ||
Aggregated intrinsic value | $ 49,479 | ||
Exercisable, outstanding (in shares) | 639,607 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 31.54 | ||
Exercisable, weighted average remaining contractual term (in years) | 1 year 4 months 6 days | ||
Exercisable, aggregate intrinsic value | $ 17,058 | ||
Unrecognized pre-tax expense | $ 19,300 | ||
Weighted-average period of recognition (in years) | 2 years 8 months 26 days | ||
Weighted-average grant date fair value per option (in dollars per share) | $ 13.96 | $ 14.36 | $ 16.21 |
Total intrinsic value of stock options exercised | $ 16,273 | $ 29,574 | $ 15,570 |
Total grant date fair value of stock options vested | 7,690 | $ 10,483 | $ 5,004 |
Cash received from stock option exercises | $ 13,700 |
SHARE-BASED AND OTHER COMPEN133
SHARE-BASED AND OTHER COMPENSATION, Restricted Stock Award (Details) - Restricted Stock - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Non-Employee Board of Directors Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 1 year | ||
Employees and Directors | 2012 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum percentage of annual bonus amounts in excess of specified amount that an employee can receive in stock awards, in lieu of cash | 10.00% | ||
Maximum percentage of annual bonus amounts in excess of specified amount that an employee can receive in stock awards, in lieu of cash | 50.00% | ||
Bonus amount that must be exceeded in order to receive awards in lieu of cash (greater than) | $ 250,000 | ||
Shares/Units (in shares): | |||
Nonvested - beginning of period (in shares) | 4,684,373 | ||
Granted | 1,322,958 | ||
Vested | (1,053,903) | ||
Forfeited | (146,267) | ||
Nonvested - end of period (in shares) | 4,807,161 | 4,684,373 | |
Weighted-average grant date fair value (in dollars per share): | |||
Nonvested - beginning of period | $ 42.29 | ||
Granted | 56.14 | ||
Vested | 35.20 | ||
Forfeited | 40.35 | ||
Nonvested - end of period | $ 47.71 | $ 42.29 | |
Total share-based expense | $ 62,624,000 | $ 57,587,000 | $ 54,666,000 |
Income tax benefits related to share-based expense | 21,960,000 | $ 20,467,000 | $ 19,105,000 |
Excess tax benefit (reduction of prior tax benefits) from share-based payments | 32,800,000 | ||
Unrecognized pre-tax expense | $ 95,000,000 | ||
Weighted-average period of recognition (in years) | 2 years 9 months 22 days | ||
Total fair value of shares vested under the plan | $ 35,700,000 | ||
Employees and Directors | 2012 Stock Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted period of awards | 3 years | ||
Employees and Directors | 2012 Stock Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted period of awards | 5 years |
SHARE-BASEAD AND OTHER COMPENSA
SHARE-BASEAD AND OTHER COMPENSATION, Deutsche Bank Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 06, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of share held as an economic hedge (in shares) | 900,000 | ||
Deutsche WM | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options, assumed in period (in shares) | 1,357,449 | ||
Equity instruments other than options, vested in period (in shares) | 0 | ||
Equity instruments other than options, forfeited in period (in shares) | 0 | ||
Estimated weighted-average fair value per common share (usd per share) | $ 14.90 | $ 13.09 | |
Prepaid compensation expense | $ 15,170 | $ 0 | |
Income tax expense | $ 799 | ||
Minimum | Deutsche WM | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted period of awards | 3 years | ||
Maximum | Deutsche WM | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted period of awards | 6 years | ||
Prepaid expenses and other assets | Deutsche WM | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Prepaid compensation asset, weighted average amortization period | 3 years | ||
Compensation, commissions and benefits (gain) | Deutsche WM | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization of DBRSU prepaid compensation asset | $ 355 | ||
Change in fair value of derivative liability (gain) | (2,457) | ||
Net gain before tax | (2,102) | ||
Compensation, commissions and benefits (gain) | Deutsche Bank Shares Held as Economic Hedge [Member] | Deutsche WM | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Change in fair value of derivative liability (gain) | $ 1,600 |
SHARE-BASED AND OTHER COMPEN135
SHARE-BASED AND OTHER COMPENSATION, Employee Stock Purchase Plan (Details) - USD ($) | Sep. 06, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
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 | 66.67% | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant (in shares) (up to) | 7,375,000 | |||
Limit on the number shares that eligible employees may purchase in any calendar year (lesser than) (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) | 557,000 | 430,000 | 397,000 | |
Discount from market value (in hundredths) | 15.00% | |||
Total share-based expense | $ 4,200,000 | $ 3,500,000 | $ 3,000,000 | |
Deutsche WM | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments other than options, vested in period (in shares) | 0 |
REGULATORY CAPITAL REQUIREME136
REGULATORY CAPITAL REQUIREMENTS (Details) CAD in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2016CAD | Sep. 30, 2015USD ($) | Sep. 30, 2015CAD | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Capital required for capital adequacy ratio, capital conservation buffer, annual increases (in hundredths) | 0.625% | |||
Capital required for capital adequacy ratio, capital conservation buffer, maximum (in hundredths) | 2.50% | |||
Capital required for capital adequacy ratio, capital conservation buffer, required (in hundredths) | 0.625% | |||
Requirements of broker-dealer subsidiaries [Abstract] | ||||
Maximum multiple of net capital allowed for aggregate indebtedness (not to exceed) | 15 | 15 | ||
Minimum net capital allowed under the alternative net capital requirement | $ 1,000 | |||
Percentage of Aggregate Debit Items allowed for net capital, under the alternative net capital requirement | 2.00% | 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% | 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% | 5.00% | ||
Raymond James Financial Inc | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Capital required for capital adequacy ratio, capital conservation buffer, actual (in hundredths) | 13.60% | |||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) [Abstract] | ||||
Actual, amount | $ 4,421,956 | $ 4,101,353 | ||
Actual, ratio (in hundredths) | 20.60% | 20.60% | 22.10% | 22.10% |
Requirement for capital adequacy purposes, amount | $ 966,341 | $ 834,677 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 1,395,825 | $ 1,205,644 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% | 6.50% | 6.50% |
Tier I Capital (to Risk-Weighted Assets) [Abstract] | ||||
Actual, amount | $ 4,421,956 | $ 4,101,353 | ||
Actual, ratio (in hundredths) | 20.60% | 20.60% | 22.10% | 22.10% |
Requirement for capital adequacy purposes, amount | $ 1,288,454 | $ 1,112,902 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% | 6.00% | 6.00% |
To be well capitalized under regulatory provisions, amount | $ 1,717,939 | $ 1,483,869 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 8.00% | 8.00% | 8.00% | 8.00% |
Total Capital (to risk-weighted assets) [Abstract] | ||||
Actual, amount | $ 4,636,009 | $ 4,290,431 | ||
Actual ratio (in hundredths) | 21.60% | 21.60% | 23.10% | 23.10% |
Requirement for capital adequacy purposes, amount | $ 1,717,939 | $ 1,483,869 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | 8.00% | 8.00% |
To be well capitalized under regulatory provisions, amount | $ 2,147,424 | $ 1,854,837 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% | 10.00% | 10.00% |
Tier I Leverage [Abstract] | ||||
Actual, amount | $ 4,421,956 | $ 4,101,353 | ||
Actual, ratio (in hundredths) | 15.00% | 15.00% | 16.10% | 16.10% |
Requirement for capital adequacy purposes, amount | $ 1,177,840 | $ 1,018,859 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | 4.00% | 4.00% |
To be well capitalized under regulatory provisions, amount | $ 1,472,300 | $ 1,273,574 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 5.00% | 5.00% | 5.00% | 5.00% |
RJ Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Capital required for capital adequacy ratio, capital conservation buffer, actual (in hundredths) | 6.00% | |||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) [Abstract] | ||||
Actual, amount | $ 1,675,890 | $ 1,525,942 | ||
Actual, ratio (in hundredths) | 12.70% | 12.70% | 13.00% | 13.00% |
Requirement for capital adequacy purposes, amount | $ 592,864 | $ 526,577 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 856,360 | $ 760,611 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% | 6.50% | 6.50% |
Tier I Capital (to Risk-Weighted Assets) [Abstract] | ||||
Actual, amount | $ 1,675,890 | $ 1,525,942 | ||
Actual, ratio (in hundredths) | 12.70% | 12.70% | 13.00% | 13.00% |
Requirement for capital adequacy purposes, amount | $ 790,486 | $ 702,103 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% | 6.00% | 6.00% |
To be well capitalized under regulatory provisions, amount | $ 1,053,981 | $ 936,137 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 8.00% | 8.00% | 8.00% | 8.00% |
Total Capital (to risk-weighted assets) [Abstract] | ||||
Actual, amount | $ 1,841,112 | $ 1,672,577 | ||
Actual ratio (in hundredths) | 14.00% | 14.00% | 14.30% | 14.30% |
Requirement for capital adequacy purposes, amount | $ 1,053,981 | $ 936,137 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | 8.00% | 8.00% |
To be well capitalized under regulatory provisions, amount | $ 1,317,476 | $ 1,170,171 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% | 10.00% | 10.00% |
Tier I Leverage [Abstract] | ||||
Actual, amount | $ 1,675,890 | $ 1,525,942 | ||
Actual, ratio (in hundredths) | 9.90% | 9.90% | 10.90% | 10.90% |
Requirement for capital adequacy purposes, amount | $ 675,939 | $ 558,829 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | 4.00% | 4.00% |
To be well capitalized under regulatory provisions, amount | $ 844,924 | $ 698,536 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 5.00% | 5.00% | 5.00% | 5.00% |
Raymond James Financial Services Inc | ||||
Requirements of broker-dealer subsidiaries [Abstract] | ||||
Minimum net capital allowed under the alternative net capital requirement | $ 250 | |||
Alternative Method Elected [Abstract] | ||||
Net capital | 27,013 | $ 25,828 | ||
Less: required net capital | (250) | (250) | ||
Excess net capital | $ 26,763 | $ 25,578 | ||
Raymond James and Associates Inc | ||||
Alternative Method Elected [Abstract] | ||||
Net capital as a percent of aggregate debit items (in hundredths) | 19.61% | 19.61% | 20.85% | 20.85% |
Net capital | $ 512,594 | $ 411,222 | ||
Less: required net capital | (52,287) | (39,452) | ||
Excess net capital | $ 460,307 | $ 371,770 | ||
Raymond James Ltd | ||||
Risk adjusted capital of Canadian broker-dealer subsidiary [Abstract] | ||||
Risk adjusted capital before minimum | CAD | CAD 77,110 | CAD 127,097 | ||
Less: required minimum capital | CAD | (250) | (250) | ||
Risk adjusted capital | CAD | CAD 76,860 | CAD 126,847 |
FINANCIAL INSTRUMENTS WITH O137
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) $ in Thousands, CAD in Millions | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2016CAD | Sep. 30, 2015USD ($) | |
Schedule of Off-Balance Sheet Risks [Line Items] | |||
Market value of securities borrowed | $ 91,500 | $ 83,400 | |
Market value of securities loaned | 69,600 | 39,700 | |
Contract value of securities borrowed | 93,400 | 86,300 | |
Contract value of securities loaned | 75,800 | 44,400 | |
Market value of securities loaned owned by clients and others | 595,300 | 432,600 | |
Contract value of securities loaned owned by clients and others | 602,000 | 434,200 | |
Trading instruments sold but not yet purchased, at fair value | 328,938 | 287,993 | |
Standby letters of credit | 29,686 | 60,925 | |
Open end consumer lines of credit (primarily SBL) | 3,616,933 | 2,531,690 | |
Commercial lines of credit | 1,430,630 | 1,419,746 | |
Unfunded loan commitments | $ 354,556 | $ 322,419 | |
Standby letters of credit maximum expiration term (or less) | 1 year | ||
Letters of credit amount outstanding | $ 29,700 | ||
Forward foreign exchange contracts | Canada, Dollars | |||
Schedule of Off-Balance Sheet Risks [Line Items] | |||
Derivative liability, notional amount | CAD | CAD 24.2 | ||
Derivative asset, notional amount | CAD | CAD 23.6 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income for basic earnings per common share: | |||
Net income attributable to Raymond James Financial, Inc. | $ 529,350 | $ 502,140 | $ 480,248 |
Less allocation of earnings and dividends to participating securities | (1,256) | (1,610) | (3,007) |
Net income attributable to RJF common shareholders | 528,094 | 500,530 | 477,241 |
Income for diluted earnings per common share: | |||
Net income attributable to Raymond James Financial, Inc. | 529,350 | 502,140 | 480,248 |
Less allocation of earnings and dividends to participating securities | (1,236) | (1,580) | (2,946) |
Net income attributable to RJF common shareholders | $ 528,114 | $ 500,560 | $ 477,302 |
Common shares: | |||
Average common shares in basic computation (in shares) | 141,773 | 142,548 | 139,935 |
Dilutive effect of outstanding stock options and certain restricted stock units (in shares) | 2,740 | 3,391 | 3,654 |
Average common shares used in diluted computation (in shares) | 144,513 | 145,939 | 143,589 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 3.72 | $ 3.51 | $ 3.41 |
Diluted (in dollars per share) | $ 3.65 | $ 3.43 | $ 3.32 |
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive (in shares) | 3,255 | 2,849 | 1,503 |
Participating securities [Abstract] | |||
Participating securities (in shares) | 346 | 464 | 887 |
Dividends paid to participating securities | $ 236 | $ 300 | $ 500 |
Dividends per common share declared and paid [Abstract] | |||
Dividends per common share - declared (in dollars per share) | $ 0.80 | $ 0.72 | $ 0.64 |
Dividends per common share - paid (in dollars per share) | $ 0.78 | $ 0.70 | $ 0.62 |
SEGMENT INFORMATION, Informatio
SEGMENT INFORMATION, Information Concerning Operations (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Revenues: | |||
Total revenues | $ 5,520,344 | $ 5,308,164 | $ 4,965,460 |
Income (loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 800,643 | 798,174 | 748,045 |
Add: net loss attributable to noncontrolling interests | (23,272) | (21,462) | (32,097) |
Income including noncontrolling interests and before provision for income taxes | 777,371 | 776,712 | 715,948 |
Net interest income (expense): | |||
Net interest income | 523,248 | 435,253 | 376,795 |
Total assets: | |||
Total assets | 31,593,733 | 26,468,032 | |
Goodwill and Intangible Assets: | |||
Goodwill | $ 408,072 | 307,635 | 295,486 |
Segment Reporting Information, Additional Information: | |||
Number of operating segments | segment | 5 | ||
Private client group | |||
Goodwill and Intangible Assets: | |||
Goodwill | $ 275,521 | 186,733 | 174,584 |
Capital markets | |||
Goodwill and Intangible Assets: | |||
Goodwill | 132,551 | 120,902 | 120,902 |
Operating Segments | Private client group | |||
Revenues: | |||
Total revenues | 3,626,718 | 3,519,558 | 3,289,503 |
Income (loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 340,564 | 342,243 | 330,278 |
Net interest income (expense): | |||
Net interest income | 97,042 | 88,842 | 89,527 |
Total assets: | |||
Total assets | 10,317,681 | 6,870,379 | |
Operating Segments | Capital markets | |||
Revenues: | |||
Total revenues | 1,016,375 | 975,064 | 968,635 |
Income (loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 139,173 | 107,009 | 130,565 |
Net interest income (expense): | |||
Net interest income | 8,339 | 7,634 | 5,326 |
Total assets: | |||
Total assets | 3,064,076 | 2,780,733 | |
Operating Segments | Asset Management | |||
Revenues: | |||
Total revenues | 404,421 | 392,378 | 369,690 |
Income (loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 132,158 | 135,050 | 128,286 |
Net interest income (expense): | |||
Net interest income | 183 | 127 | 92 |
Total assets: | |||
Total assets | 133,190 | 187,378 | |
Operating Segments | RJ Bank | |||
Revenues: | |||
Total revenues | 517,243 | 425,988 | 360,317 |
Income (loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 337,296 | 278,721 | 242,834 |
Net interest income (expense): | |||
Net interest income | 478,690 | 403,578 | 346,757 |
Total assets: | |||
Total assets | 16,613,391 | 14,191,566 | |
Operating Segments | Other | |||
Revenues: | |||
Total revenues | 46,291 | 66,967 | 42,203 |
Income (loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | (148,548) | (64,849) | (83,918) |
Net interest income (expense): | |||
Net interest income | (61,006) | (64,928) | (64,907) |
Total assets: | |||
Total assets | 1,465,395 | 2,437,976 | |
Intersegment eliminations | |||
Revenues: | |||
Total revenues | $ (90,704) | $ (71,791) | $ (64,888) |
SEGMENT INFORMATION, Classified
SEGMENT INFORMATION, Classified by Major Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | |||
Total revenues | $ 5,520,344 | $ 5,308,164 | $ 4,965,460 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 800,643 | 798,174 | 748,045 |
Total assets: | |||
Total assets | 31,593,733 | 26,468,032 | |
Goodwill and Intangible Assets: | |||
Goodwill | 408,072 | 307,635 | 295,486 |
United States | |||
Revenues: | |||
Total revenues | 5,118,760 | 4,911,304 | 4,512,808 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 778,351 | 784,517 | 706,366 |
Total assets: | |||
Total assets | 29,218,939 | 24,531,993 | |
Goodwill and Intangible Assets: | |||
Goodwill | 356,300 | 274,600 | |
Canada | |||
Revenues: | |||
Total revenues | 278,652 | 279,200 | 323,038 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 20,243 | 17,770 | 37,947 |
Total assets: | |||
Total assets | 2,275,056 | 1,814,178 | |
Goodwill and Intangible Assets: | |||
Goodwill | 42,700 | 33,000 | |
Europe | |||
Revenues: | |||
Total revenues | 85,718 | 85,289 | 95,865 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | (3,791) | (6,852) | (1,546) |
Total assets: | |||
Total assets | 61,067 | 36,669 | |
Goodwill and Intangible Assets: | |||
Goodwill | 9,100 | ||
Other Geographic Areas | |||
Revenues: | |||
Total revenues | 37,214 | 32,371 | 33,749 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 5,840 | 2,739 | $ 5,278 |
Total assets: | |||
Total assets | $ 38,671 | $ 85,192 |
CONDENSED FINANCIAL INFORMAT141
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Raymond James and Associates Inc | |
Condensed Financial Statements, Captions [Line Items] | |
Ratio of net capital to aggregate debit balances required by loan covenants | 10.00% |
Subsidiaries | |
Condensed Financial Statements, Captions [Line Items] | |
Net assets restricted from being transferred to Parent | $ 2,080 |
CONDENSED FINANCIAL INFORMAT142
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Financial Condition (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Assets: | ||||
Cash and cash equivalents | $ 1,650,452 | $ 2,601,006 | $ 2,199,063 | $ 2,596,616 |
Investments in consolidated subsidiaries: | ||||
Property and equipment, net | 321,457 | 255,875 | ||
Goodwill and identifiable intangible assets, net | 504,442 | 376,962 | ||
Other assets | 50,490 | 32,162 | ||
Total assets | 31,593,733 | 26,468,032 | ||
Liabilities and Equity [Abstract] | ||||
Trade and other | 590,560 | 729,245 | ||
Intercompany payables to subsidiaries: | ||||
Accrued compensation and benefits | 915,954 | 842,527 | ||
Total liabilities | 26,443,817 | 21,681,934 | ||
Equity | 4,914,096 | 4,522,031 | ||
Total liabilities and equity | 31,593,733 | 26,468,032 | ||
Cash and cash equivalents held in deposit accounts | 353,000 | 458,000 | ||
RJF Parent Company | ||||
Assets: | ||||
Cash and cash equivalents | 371,978 | 746,042 | $ 778,855 | $ 274,747 |
Intercompany receivables from subsidiaries: | ||||
Bank subsidiary | 0 | 82 | ||
Non-bank subsidiaries | 1,228,046 | 853,222 | ||
Investments in consolidated subsidiaries: | ||||
Bank subsidiary | 1,658,663 | 1,519,263 | ||
Non-bank subsidiaries | 3,118,961 | 2,378,129 | ||
Property and equipment, net | 14,891 | 10,602 | ||
Goodwill and identifiable intangible assets, net | 31,954 | 31,954 | ||
Other assets | 611,667 | 616,526 | ||
Total assets | 7,036,160 | 6,155,820 | ||
Liabilities and Equity [Abstract] | ||||
Trade and other | 81,340 | 78,945 | ||
Intercompany payables to subsidiaries: | ||||
Bank subsidiary | 230 | 0 | ||
Non-bank subsidiaries | 13,892 | 129,779 | ||
Accrued compensation and benefits | 346,015 | 287,495 | ||
Senior notes payable | 1,680,587 | 1,137,570 | ||
Total liabilities | 2,122,064 | 1,633,789 | ||
Equity | 4,914,096 | 4,522,031 | ||
Total liabilities and equity | 7,036,160 | 6,155,820 | ||
Cash and cash equivalents held in deposit accounts | 350,000 | 451,000 | ||
Invested cash and cash equivalents by subsidiaries on behalf of Parent | $ 457,000 | $ 494,000 |
CONDENSED FINANCIAL INFORMAT143
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | |||
Interest | $ 640,325 | $ 543,207 | $ 480,886 |
Other | 82,006 | 96,596 | 67,516 |
Total revenues | 5,520,344 | 5,308,164 | 4,965,460 |
Interest expense | (117,077) | (107,954) | (104,091) |
Net revenues | 5,403,267 | 5,200,210 | 4,861,369 |
Non-interest expenses: | |||
Compensation and benefits | 3,624,747 | 3,525,378 | 3,312,635 |
Communications and information processing | 279,746 | 266,396 | 252,694 |
Occupancy and equipment costs | 167,455 | 163,229 | 161,683 |
Business development | 148,413 | 158,966 | 139,672 |
Other | 234,000 | 183,642 | 172,885 |
Income before income tax benefit and equity in undistributed net income of subsidiaries | 777,371 | 776,712 | 715,948 |
Provision for income taxes | 271,293 | 296,034 | 267,797 |
Net income attributable to Raymond James Financial, Inc. | 529,350 | 502,140 | 480,248 |
RJF Parent Company | |||
Revenues: | |||
Dividends from non-bank subsidiaries | 248,020 | 230,853 | 253,218 |
Dividends from bank subsidiary | 75,000 | 0 | 25,000 |
Interest from subsidiaries | 8,999 | 6,886 | 5,779 |
Interest | 807 | 843 | 2,050 |
Other | 4,654 | 3,823 | 1,613 |
Total revenues | 337,480 | 242,405 | 287,660 |
Interest expense | (78,089) | (76,233) | (76,662) |
Net revenues | 259,391 | 166,172 | 210,998 |
Non-interest expenses: | |||
Compensation and benefits | 54,664 | 46,758 | 41,482 |
Communications and information processing | 6,330 | 5,999 | 5,036 |
Occupancy and equipment costs | 636 | 800 | 892 |
Business development | 18,364 | 17,581 | 15,497 |
Other | 9,792 | 10,365 | 8,252 |
Intercompany allocations and charges | (40,424) | (46,898) | (38,148) |
Total non-interest expenses | 49,362 | 34,605 | 33,011 |
Income before income tax benefit and equity in undistributed net income of subsidiaries | 210,029 | 131,567 | 177,987 |
Provision for income taxes | (64,658) | (42,688) | (37,170) |
Income before equity in undistributed net income of subsidiaries | 274,687 | 174,255 | 215,157 |
Equity in undistributed net income of subsidiaries | 254,663 | 327,885 | 265,091 |
Net income attributable to Raymond James Financial, Inc. | $ 529,350 | $ 502,140 | $ 480,248 |
CONDENSED FINANCIAL INFORMAT144
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | |||
Net income attributable to Raymond James Financial, Inc. | $ 529,350 | $ 502,140 | $ 480,248 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Other | 36,590 | 54,527 | 35,343 |
Net change in: | |||
Other | 28,122 | 46,896 | 19,330 |
Accrued compensation and benefits | 46,351 | 28,758 | 72,294 |
Cash flows from financing activities: | |||
Repayment of senior notes payable | (250,000) | 0 | 0 |
Purchases of treasury stock | (162,502) | (88,542) | (8,427) |
Dividends on common stock | (113,435) | (103,143) | (88,102) |
Net (decrease) increase in cash and cash equivalents | (950,554) | 401,943 | (397,553) |
Cash and cash equivalents at beginning of year | 2,601,006 | 2,199,063 | 2,596,616 |
Cash and cash equivalents at end of year | 1,650,452 | 2,601,006 | 2,199,063 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 113,639 | 106,313 | 101,090 |
Cash received for income taxes, net | 303,793 | 378,928 | 319,279 |
RJF Parent Company | |||
Cash flows from operating activities: | |||
Net income attributable to Raymond James Financial, Inc. | 529,350 | 502,140 | 480,248 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on investments | (11,538) | (5,586) | (10,245) |
(Gain) loss on company-owned life insurance | (25,642) | 8,960 | (17,989) |
Equity in undistributed net income of subsidiaries | (254,663) | (327,885) | (265,091) |
Other | 73,798 | 60,634 | 75,725 |
Net change in: | |||
Intercompany receivables | 19,641 | (102,866) | 45,656 |
Other | 97,067 | 51,442 | 44,360 |
Intercompany payables | (115,657) | 20,338 | (108,056) |
Trade and other | 2,396 | (49) | 12,835 |
Accrued compensation and benefits | 58,520 | 2,911 | 7,668 |
Net cash (used in) provided by operating activities | 373,272 | 210,039 | 265,111 |
Cash flows from investing activities: | |||
(Investments in) distributions received from subsidiaries, net | (637,689) | (9,493) | 33,973 |
(Advances to) repayments of advances by subsidiaries, net | (394,383) | (40,120) | 287,154 |
Proceeds from sales (purchases) of investments, net | 24,609 | (4,601) | 6,347 |
Purchase of investments in company-owned life insurance, net | (49,488) | (44,917) | (25,581) |
Net cash used in investing activities | (1,056,951) | (99,131) | 301,893 |
Cash flows from financing activities: | |||
Proceeds from senior note issuances, net of debt issuance costs | 792,221 | 0 | 0 |
Repayment of senior notes payable | (250,000) | 0 | 0 |
Exercise of stock options and employee stock purchases | 43,331 | 47,964 | 33,633 |
Purchases of treasury stock | (162,502) | (88,542) | (8,427) |
Dividends on common stock | (113,435) | (103,143) | (88,102) |
Net cash provided by (used in) financing activities | 309,615 | (143,721) | (62,896) |
Net (decrease) increase in cash and cash equivalents | (374,064) | (32,813) | 504,108 |
Cash and cash equivalents at beginning of year | 746,042 | 778,855 | 274,747 |
Cash and cash equivalents at end of year | 371,978 | 746,042 | 778,855 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 74,568 | 76,297 | 76,661 |
Cash received for income taxes, net | 27,397 | 32,383 | (59,552) |
Supplemental disclosures of noncash investing activity: | |||
Investments in (distributions from) subsidiaries, net | $ 781 | $ 507 | $ (132,117) |