Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 16, 2017 | Mar. 31, 2017 | |
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 | $ 9,811,540,297 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 144,400,529 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Assets: | ||
Cash and cash equivalents | $ 3,669,672 | $ 1,650,452 |
Assets segregated pursuant to regulations and other segregated assets | 3,476,085 | 4,884,487 |
Securities purchased under agreements to resell and other collateralized financings | 404,462 | 470,222 |
Securities borrowed | 138,319 | 170,860 |
Financial instruments, at fair value: | ||
Trading instruments (includes $357,099 and $418,141 pledged as collateral) | 564,263 | 713,550 |
Available-for-sale securities | 2,188,282 | 859,398 |
Derivative assets | 318,775 | 480,106 |
Private equity investments | 198,779 | 194,634 |
Other investments (includes $6,640 and $22,501 pledged as collateral) | 220,980 | 326,353 |
Brokerage client receivables, net | 2,766,771 | 2,714,782 |
Receivables from brokers, dealers and clearing organizations | 268,021 | 380,764 |
Other receivables | 652,769 | 610,417 |
Bank loans, net | 17,006,795 | 15,210,735 |
Loans to financial advisors, net | 873,272 | 838,721 |
Property and equipment, net | 437,374 | 321,457 |
Deferred income taxes, net | 313,486 | 322,024 |
Goodwill and identifiable intangible assets, net | 493,183 | 503,046 |
Other assets | 780,425 | 718,835 |
Total assets | 34,883,456 | 31,486,976 |
Liabilities and equity: | ||
Bank deposits | 17,732,362 | 14,262,547 |
Securities sold under agreements to repurchase | 220,942 | 193,229 |
Securities loaned | 383,953 | 677,761 |
Financial instruments sold but not yet purchased, at fair value | ||
Trading instruments | 221,449 | 320,103 |
Derivative liabilities | 356,964 | 475,608 |
Brokerage client payables | 5,411,829 | 6,444,671 |
Payables to brokers, dealers and clearing organizations | 172,714 | 306,119 |
Accrued compensation, commissions and benefits | 1,059,996 | 898,185 |
Other payables | 567,045 | 556,532 |
Other borrowings | 1,514,012 | 608,658 |
Senior notes payable | 1,548,839 | 1,680,587 |
Total liabilities | 29,190,105 | 26,424,000 |
Commitments and contingencies | ||
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; 154,228,235 and 151,424,947 shares issued as of September 30, 2017 and 2016, respectively. Shares outstanding of 144,096,521 and 141,544,511 as of September 30, 2017 and 2016, respectively | 1,542 | 1,513 |
Additional paid-in capital | 1,645,397 | 1,498,921 |
Retained earnings | 4,340,054 | 3,834,781 |
Treasury stock, at cost; 10,084,038 and 9,766,846 common shares as of September 30, 2017 and 2016, respectively | (390,081) | (362,937) |
Accumulated other comprehensive loss | (15,199) | (55,733) |
Total equity attributable to Raymond James Financial, Inc. | 5,581,713 | 4,916,545 |
Noncontrolling interests | 111,638 | 146,431 |
Total equity | 5,693,351 | 5,062,976 |
Total liabilities and equity | 34,883,456 | 31,486,976 |
Investments in real estate partnerships held by consolidated variable interest entities | ||
Financial instruments, at fair value: | ||
Investments in real estate partnerships held by consolidated variable interest entities | $ 111,743 | $ 116,133 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Trading instruments pledged as collateral | $ 357,099 | $ 418,141 |
Other investments pledged as collateral | $ 6,640 | $ 22,501 |
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) | 154,228,235 | 151,424,947 |
Common stock, shares outstanding (in shares) | 144,096,521 | 141,544,511 |
Treasury stock, shares (in shares) | 10,084,038 | 9,766,846 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Revenues: | ||||
Securities commissions and fees | $ 4,020,910 | $ 3,498,615 | $ 3,443,038 | |
Investment banking | 398,675 | 304,155 | 323,654 | |
Investment advisory and related administrative fees | 462,989 | 393,346 | 386,376 | |
Interest | 802,126 | 640,397 | 543,282 | |
Account and service fees | 667,274 | 511,326 | 457,913 | |
Net trading profit | 81,880 | 91,591 | 58,512 | |
Other | 91,021 | 81,690 | 96,905 | |
Total revenues | 6,524,875 | 5,521,120 | 5,309,680 | |
Interest expense | (153,778) | (116,056) | (106,074) | |
Net revenues | 6,371,097 | 5,405,064 | 5,203,606 | |
Non-interest expenses: | ||||
Compensation, commissions and benefits | 4,228,387 | 3,624,607 | 3,525,250 | |
Communications and information processing | 310,961 | 279,746 | 266,396 | |
Occupancy and equipment costs | 190,737 | 167,455 | 163,229 | |
Brokerage, clearing and exchange | 48,586 | 42,732 | 42,748 | |
Business development | 154,926 | 148,413 | 158,966 | |
Investment sub-advisory fees | 78,656 | 59,930 | 59,569 | |
Bank loan loss provision | 12,987 | 28,167 | 23,570 | |
Acquisition-related expenses | 17,995 | 40,706 | 0 | |
Loss on extinguishment of senior notes payable | 45,746 | 0 | 0 | |
Other | 354,138 | 201,364 | 149,266 | |
Total non-interest expenses | 5,443,119 | 4,593,120 | 4,388,994 | |
Income including noncontrolling interests and before provision for income taxes | 927,978 | 811,944 | 814,612 | |
Provision for income taxes | 289,111 | 271,293 | 296,034 | |
Net income including noncontrolling interests | 638,867 | 540,651 | 518,578 | |
Net income attributable to noncontrolling interests | 2,632 | 11,301 | 16,438 | |
Net income attributable to Raymond James Financial, Inc. | $ 636,235 | $ 529,350 | $ 502,140 | |
Earnings per common share – basic (in dollars per share) | $ 4.43 | $ 3.72 | $ 3.51 | |
Earnings per common share – diluted (in dollars per share) | $ 4.33 | $ 3.65 | $ 3.43 | |
Weighted-average common shares outstanding - basic (in shares) | 143,275 | 141,773 | 142,548 | |
Weighted-average common and common equivalent shares outstanding - diluted (in shares) | 146,647 | 144,513 | 145,939 | |
Other comprehensive income/(loss), net of tax: | ||||
Unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses | [1] | $ 1,684 | $ (5,576) | $ (3,325) |
Unrealized gain/(loss) on currency translations, net of the impact of net investment hedges | [1] | 15,618 | 2,179 | (30,640) |
Unrealized gain/(loss) on cash flow hedges | [1] | 23,232 | (11,833) | (4,650) |
Total comprehensive income | [1] | 676,769 | 514,120 | 463,525 |
Other-than-temporary impairment: | ||||
Total other-than-temporary impairment, net | 2,279 | 1,305 | 2,489 | |
Portion of recoveries recognized in other comprehensive income | (2,279) | (1,305) | (2,489) | |
Net impairment losses recognized in other revenue | $ 0 | $ 0 | $ 0 | |
[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, 2014 | $ 1,444 | $ 1,239,046 | $ 3,026,295 | [1] | $ (121,211) | $ (1,888) | [2] | $ 162,634 | [1] | ||||
Changes in Shareholders' Equity: | |||||||||||||
Share issuances / other | 47 | 454 | 5 | [1] | (1,078) | [1] | |||||||
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 | [1] | ||||||||||
Cash dividends declared | [1] | (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) | [3] | (3,325) | [2] | |||||||||
Net change in currency translations and net investment hedges, net of tax | (30,640) | [3] | (30,640) | [2] | |||||||||
Net change in cash flow hedges, net of tax | (4,650) | [3] | (4,650) | [2] | |||||||||
Net income attributable to noncontrolling interests | (16,438) | 16,438 | [1] | ||||||||||
Capital contributions | [1] | 0 | |||||||||||
Distributions | [1] | (23,540) | |||||||||||
Derecognition resulting from sales | [1] | 0 | |||||||||||
Balance, end of year at Sep. 30, 2015 | 4,678,935 | 1,491 | 1,344,779 | 3,422,169 | [1] | (203,455) | (40,503) | [2] | 154,454 | [1] | |||
Changes in Shareholders' Equity: | |||||||||||||
Total equity attributable to Raymond James Financial, Inc. | (40,503) | $ 4,524,481 | |||||||||||
Share issuances / other | 22 | 655 | 0 | [1] | (1,929) | [1] | |||||||
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 | [1] | ||||||||||
Cash dividends declared | [1] | (116,738) | |||||||||||
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) | [3] | (5,576) | [2] | |||||||||
Net change in currency translations and net investment hedges, net of tax | 2,179 | [3] | 2,179 | [2] | |||||||||
Net change in cash flow hedges, net of tax | (11,833) | [3] | (11,833) | [2] | |||||||||
Net income attributable to noncontrolling interests | (11,301) | 11,301 | [1] | ||||||||||
Capital contributions | [1] | 917 | |||||||||||
Distributions | [1] | (18,312) | |||||||||||
Derecognition resulting from sales | [1] | 0 | |||||||||||
Balance, end of year at Sep. 30, 2016 | 5,062,976 | 1,513 | 1,498,921 | 3,834,781 | [1] | (362,937) | (55,733) | [2] | 146,431 | [1] | |||
Changes in Shareholders' Equity: | |||||||||||||
Total equity attributable to Raymond James Financial, Inc. | 4,916,545 | (55,733) | 4,916,545 | ||||||||||
Share issuances / other | 29 | 1,193 | (319) | [1] | 1,017 | [1] | |||||||
Employee stock purchases | 26,277 | ||||||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 28,258 | (17,740) | |||||||||||
Restricted stock, stock option and restricted stock unit expense | 90,748 | ||||||||||||
Excess tax benefit/(reduction of prior tax benefit) from share-based payments | [4] | 0 | |||||||||||
Net income attributable to Raymond James Financial, Inc. | 636,235 | 636,235 | [1] | ||||||||||
Cash dividends declared | [1] | (130,643) | |||||||||||
Purchases/surrenders | (9,404) | ||||||||||||
Net change in unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | 1,684 | [3] | 1,684 | [2] | |||||||||
Net change in currency translations and net investment hedges, net of tax | 15,618 | [3] | 15,618 | [2] | |||||||||
Net change in cash flow hedges, net of tax | 23,232 | [3] | 23,232 | [2] | |||||||||
Net income attributable to noncontrolling interests | (2,632) | 2,632 | [1] | ||||||||||
Capital contributions | [1] | 9,775 | |||||||||||
Distributions | [1] | (43,568) | |||||||||||
Derecognition resulting from sales | [1] | (4,649) | |||||||||||
Balance, end of year at Sep. 30, 2017 | 5,693,351 | $ 1,542 | $ 1,645,397 | $ 4,340,054 | [1] | $ (390,081) | (15,199) | [2] | $ 111,638 | [1] | |||
Changes in Shareholders' Equity: | |||||||||||||
Total equity attributable to Raymond James Financial, Inc. | $ 5,581,713 | $ (15,199) | $ 5,581,713 | ||||||||||
[1] | Each respective prior period balance has been restated to reflect the impact of the deconsolidation of certain VIEs. See Note 1 for additional information. | ||||||||||||
[2] | All components of other comprehensive loss, net of tax, are attributable to Raymond James Financial, Inc. | ||||||||||||
[3] | All components of other comprehensive income/(loss), net of tax, are attributable to Raymond James Financial, Inc. | ||||||||||||
[4] | During the twelve months ended September 30, 2017, we adopted new stock compensation simplification guidance. See Notes 1, 16 and 20 for additional information. |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||
Net income attributable to Raymond James Financial, Inc. | $ 636,235 | $ 529,350 | $ 502,140 |
Net income attributable to noncontrolling interests | 2,632 | 11,301 | 16,438 |
Net income including noncontrolling interests | 638,867 | 540,651 | 518,578 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by/(used in) operating activities: | |||
Depreciation and amortization | 84,132 | 72,383 | 68,315 |
Deferred income taxes | (11,617) | (58,798) | (23,462) |
Premium and discount amortization on available-for-sale securities and unrealized gain on other investments | (27,572) | (25,010) | (42,544) |
Provisions for loan losses, legal and regulatory proceedings (excluding the Jay Peak matter) and bad debts | 36,357 | 42,394 | 34,277 |
Share-based compensation expense | 96,164 | 78,528 | 71,488 |
Compensation expense/(benefit) which is payable in common stock of an acquiree | 13,301 | (2,102) | 0 |
Unrealized (gain)/loss on company owned life insurance, net of expenses | (43,385) | (24,586) | 10,724 |
Loss on extinguishment of senior notes payable | 45,746 | 0 | 0 |
Other | 29,532 | 16,940 | 5,681 |
Net change in: | |||
Assets segregated pursuant to regulations and other segregated assets | 1,430,898 | (1,942,429) | (476,909) |
Securities purchased under agreements to resell and other collateralized financings, net of securities sold under agreements to repurchase | 97,001 | (134,085) | 41,101 |
Securities loaned, net of securities borrowed | (261,659) | 152,380 | 98,896 |
Loans provided to financial advisors, net of repayments | (53,785) | (344,164) | (85,895) |
Brokerage client receivables and other accounts receivable, net | (50,917) | (609,952) | (115,841) |
Trading instruments, net | 57,106 | 7,048 | 32,408 |
Derivative instruments, net | (57,889) | 18,590 | 1,922 |
Other assets | 97,391 | (47,094) | (3,922) |
Brokerage client payables and other accounts payable | (1,133,283) | 1,782,456 | 792,657 |
Accrued compensation, commissions and benefits | 160,038 | 46,367 | 34,702 |
Proceeds from sales of securitizations and loans held for sale, net of purchases and originations of loans held for sale | 189,232 | (101,155) | (59,638) |
Net cash provided by/(used in) operating activities | 1,305,936 | (573,318) | 898,694 |
Cash flows from investing activities: | |||
Additions to property, buildings and equipment, including software | (189,994) | (121,733) | (74,111) |
Increase in bank loans, net | (2,253,574) | (2,400,247) | (2,176,698) |
Purchases of Federal Home Loan Bank/Federal Reserve Bank stock, net | (13,375) | (3,231) | (4,446) |
Proceeds from sales of loans held for investment | 333,130 | 197,557 | 111,731 |
Proceeds from sales of or distributions received from private equity and other investments, net of purchases or contributions to private equity or other investments | 90,458 | (39,617) | (62,416) |
Purchases of available-for-sale securities | (1,732,790) | (463,202) | (92,485) |
Available-for-sale securities maturations, repayments and redemptions | 299,343 | 95,961 | 69,757 |
Proceeds from sales of available-for-sale securities | 93,774 | 11,062 | 84,785 |
Business acquisitions, net of cash acquired | 0 | (175,283) | (15,823) |
Other investing activities, net | (3,042) | (19,170) | (16,904) |
Net cash used in investing activities | (3,376,070) | (2,917,903) | (2,176,610) |
Cash flows from financing activities: | |||
Proceeds from/(repayments of) short-term borrowings, net | 610,000 | (115,000) | (34,700) |
Proceeds from Federal Home Loan Bank advances | 950,000 | 25,000 | 550,299 |
Repayments of Federal Home Loan Bank advances and other borrowed funds | (654,647) | (4,407) | (509,252) |
Proceeds from senior note issuances, net of debt issuance costs paid | 508,473 | 792,221 | 0 |
Extinguishment of senior notes payable | (650,000) | (250,000) | 0 |
Premium paid on extinguishment of senior notes payable | (36,892) | 0 | 0 |
Acquisition-related contingent consideration received, net of payments | 2,992 | 0 | 0 |
Exercise of stock options and employee stock purchases | 57,462 | 43,331 | 47,964 |
Increase in bank deposits | 3,469,815 | 2,342,666 | 1,890,957 |
Purchases of treasury stock | (34,055) | (162,502) | (88,542) |
Dividends on common stock | (127,202) | (113,435) | (103,143) |
Distributions to noncontrolling interests, net | (31,383) | (17,395) | (23,540) |
Net cash provided by financing activities | 4,064,563 | 2,540,479 | 1,730,043 |
Currency adjustment: | |||
Effect of exchange rate changes on cash | 24,791 | 188 | (50,184) |
Net increase/(decrease) in cash and cash equivalents | 2,019,220 | (950,554) | 401,943 |
Cash and cash equivalents at beginning of year | 1,650,452 | 2,601,006 | 2,199,063 |
Cash and cash equivalents at end of year | 3,669,672 | 1,650,452 | 2,601,006 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 155,984 | 113,517 | 106,190 |
Cash paid for income taxes | 349,009 | 303,793 | 378,928 |
Jay Peak Litigation | |||
Net change in: | |||
Jay Peak matter payments | $ (145,500) | $ (4,500) | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION Organization 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 services, and trust services. As used herein, the terms “we,” “our” or “us” refer to RJF and/or one or more of its subsidiaries. Principal subsidiaries As of September 30, 2017, our principal subsidiaries, all wholly owned, include: Raymond James & Associates, Inc. (“RJ&A”), a domestic broker-dealer carrying client accounts; Raymond James Financial Services, Inc. (“RJFS”), an introducing domestic broker-dealer; Raymond James Financial Services Advisors, Inc. (“RJFSA”), a registered investment advisor (“RIA”); 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. 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 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 for the reporting period. Actual results could differ from those estimates and could have a material impact on the consolidated financial statements. Adoption of new accounting guidance We adopted accounting guidance related to the consolidation model as of October 1, 2016. As a result of this adoption we deconsolidated a number of low-income housing tax credit (“LIHTC”) fund VIEs that had previously been consolidated. We applied the new consolidation guidance on the full retrospective basis, meaning that we have reflected the adjustments arising from this adoption as of the beginning of our earliest comparative period presented. In addition, effective October 1, 2016 we also adopted amended guidance related to share-based compensation, which was applied on a prospective basis. The amended guidance involves several aspects of the accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. See Note 2 for additional information. Reclassifications During the period, we made a number changes to the current and previously reported amounts in the Consolidated Statements of Cash Flows. These included cash flow reclassifications to conform with changes made in the Consolidated Statements of Financial Condition (including derivative balances and the Jay Peak legal settlement), required adjustments associated with the adoption of accounting principles (including the deconsolidation of certain VIEs and treatment of excess tax benefits related to share-based compensation), and immaterial adjustments between line items (including foreign exchange impact on cash adjustments and payments with noncontrolling interest holders). In addition to the reclassification discussed above, certain other prior period amounts have also been reclassified to conform to the current year’s presentation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2017 | |
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 discounts. b. Fees earned by financial advisors who provide investment advisory services under various manners of affiliation with us. These fee revenues are computed as either a percentage of the assets in the client account, or a flat periodic fee charged to the client for investment advice and are recognized over the period in which the service is provided. Such fees are earned from the services provided by the financial advisors who affiliate with us. Financial advisors may choose to affiliate with us as either an employee, and thus operate under our registered investment advisor (“RIA”) license, or as an independent contractor. If affiliated as an independent contractor, the financial advisor may choose to provide such advisory services either under their own RIA license, or under the RIA license of one of our subsidiaries. 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 and independent contractors who offer such services under one of our subsidiary RIA licenses are presented in “Securities commissions and fees” revenue on a gross basis. These advisors’ compensation is calculated as a percentage of the revenues generated and is recorded as a component of “Compensation, commissions and benefits expense”. ii. Independent RIA firms owned and operated by a financial advisor who is an independent contractor, may receive administrative and custodial services from us. These firms operate under their own RIA license and pay a fee for services provided to the RIA and its clients. These fees are recorded in “Securities commissions and fees” revenue, net of the portion of the fees that are remitted to the independent RIA firm. iii. We may earn fees as a result of providing a custodial platform for unaffiliated independent RIA firms. These independent RIA firms operate under their own RIA license and pay for administrative and other services that we provide. These fees are recorded in “Securities commissions and fees” revenue, net of the portion of the fees that are remitted to the independent RIA firm. c. Certain asset-based fees, which are recorded over the period earned. d. Trailing commissions from mutual funds and variable annuities/insurance products, which are recorded over the period earned. e. Insurance commission revenues and related expenses are recognized when the delivery of the insurance policy is confirmed by the carrier, the premium is remitted to the insurance company and the policy requirements are met. f. Annuity commission revenues and related expenses are recognized when the signed annuity application and premium is submitted to the annuity carrier. Investment banking - Investment banking revenues are generally recorded at the time the services related to the transaction are completed under the terms of the engagement and the related income is reasonably determinable. Such investment banking revenues include merger & acquisition and advisory fees, management fees and underwriting fees earned in connection with the distribution of public offerings, private placement fees, and syndication fees on the sale of low-income housing tax credit fund interests. Expenses associated with such transactions, net of client reimbursements, are deferred until the related revenue is recognized or the assignment is otherwise concluded and are presented net with the related revenues. Investment advisory and related administrative 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 separately managed accounts for our clients, including individuals, mutual funds and managed programs. We earn investment advisory and related administrative 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 over the period earned. We may earn performance fees from various funds and separately managed 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 and 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 funds’ underlying investments. We recognize these fees 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 provided to mutual fund and insurance/annuity companies 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 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 to maintain 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, which are recorded at fair value. RJ Bank maintains cash in an interest-bearing pass-through account at the Federal Reserve Bank in accordance with Regulation D of the Federal Reserve Act, which requires depository institutions to maintain minimum average reserve balances against its deposits. Repurchase agreements and other collateralized financings We purchase securities under short-term agreements to resell (“reverse repurchase agreements”). Additionally, we sell securities under agreements to repurchase (“repurchase agreements”). Both reverse repurchase agreements and repurchase agreements are accounted for as collateralized financings and are carried at contractual amounts plus accrued interest. To mitigate credit exposure, we receive collateral with a fair 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. 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 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 7 for additional information regarding this collateral). Financial instruments, financial instruments sold but not yet purchased at 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 price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for the asset or liability. 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 measurement considered from the perspective of a market participant. As such, our fair value measurements reflect assumptions 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 valued using unadjusted quoted prices in active markets for identical assets or liabilities. These include equity and corporate debt securities traded in active markets and certain U.S. Treasury securities and other governmental obligations. 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 and corporate debt obligations that are not actively traded, certain government and municipal obligations, interest rate swaps, asset-backed securities (“ABS”), collateralized mortgage obligations (“CMOs”), most 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 one or more inputs that are 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 our private equity investments, pools of interest-only Small Business Administration 7(a) (“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 identical securities recorded at fair value as part of our trading instruments (long positions) and trading instruments sold but not yet purchased (short positions). Valuation techniques and inputs - 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 which are actively traded will generally have a higher degree of price transparency than financial instruments that are thinly traded. 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 private equity investments, ARS, certain CMOs, ABS and certain collateralized debt obligations, to be uncertain or inactive as of both September 30, 2017 and 2016. 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 low levels of 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: Trading instruments and trading instruments sold but not yet purchased 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 instruments. Such instruments are classified within Level 1 of the fair value hierarchy. Level 2: When trading instruments are traded in secondary markets and quoted market prices for identical instruments do not exist, 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. 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 section that follows. We also maintain 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: 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. 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 Strips 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 instruments are to be announced (“TBA”) security contracts with investors for generic MBS at specific rates and prices to be delivered on settlement dates in the future. We enter into these TBAs to hedge interest rate risk that arises as part of a program our fixed income public finance operations offers to certain state and local housing finance agencies (“HFA”). Under this program, we enter into forward commitments to purchase Government National Mortgage Association (“GNMA”) or Federal National Home Mortgage Association (“FNMA”) MBS. The MBS are issued on behalf of various HFA clients and consist of the mortgages originated through their lending programs. Our forward GNMA or FNMA MBS purchase commitments arise at the time of the loan reservation for a borrower in the HFA lending program. The underlying terms of the GNMA or FNMA MBS purchase, including the price for the MBS (which is dependent upon the interest rates associated with the underlying mortgages) are also fixed at loan reservation. We typically sell such MBS upon acquisition as part of our fixed income operations. The TBA securities used to hedge these transactions 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 “Trading instruments” or “Trading instruments sold but not yet purchased,” 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 generally classified at the date of purchase and are comprised primarily of agency MBS and CMOs and equity securities held predominately by RJ Bank and ARS. Available-for-sale securities held at RJ Bank are used as part of its 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 available-for-sale securities is recognized in interest income on an accrual basis. For the RJ Bank available-for-sale 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 available-for-sale securities are recognized using the specific identification method and reflected in other revenue in the period sold. Unrealized gains or losses on available-for-sale securities, except for those that are deemed to be other-than-temporary, are recorded through other comprehensive income/(loss) and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”) on our Consolidated Statements of Financial Condition. For any available-for-sale 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 our available-for-sale securities. 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. We estimate the portion of loss attributable to credit using a discounted cash flow model. For the non-agency CMOs within the RJ Bank available-for-sale portfolio, which were classified as level 2 of the fair value hierarchy and were sold during the year ended September 30, 2017, our discounted cash flow model utilized relevant assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. The fair value of agency securities included within the RJ Bank available-for-sale 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. On a quarterly basis, we utilize bid quotations from other third party pricing services to corroborate the pricing information obtained from the primary pricing service. Securities valued using these valuation techniques are 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 models take into consideration the characteristics of the underlying securities, as well as multiple inputs including the issuer and its credit quality, data from recent trades, if any, 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 are classified within Level 3 of the fair value hierarchy. Derivative assets and derivative liabilities - Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” in our Consolidated Statements of Financial Condition. To reduce credit exposure on certain of our derivative transactions, we may enter into a master netting arrangement that allows for net settlement of all derivative transactions with each counterparty. In addition, the credit support annex allows parties to the master netting 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. Where permitted, we elect to net-by-counterparty certain derivative contracts entered into under a legally enforceable master netting agreement and, therefore, the fair value of those derivative contracts are netted by counterparty in the Consolidated Statements of Financial Condition. As we elect to net-by-counterparty the fair value of such derivative contracts, we also net-by-counterparty any cash collateral exchanged as part of those derivative agreements. Trading: We enter into interest rate contracts either as part of our fixed income business to facilitate client transactions, or to actively manage risk exposures that arise from our client activity, including a portion of our trading inventory. 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 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 between the client and the third party financial institution. We record the value of each derivative position held at fair value, as either an asset or an offsetting liability, presented within “Derivative assets” or “Derivative liabilities,” as applicable, on our Consolidated Statements of Financial Condition. Fair value is determined using an internal pricing model which includes inputs from independent pricing sources to project future cash flows under each underlying derivative contract. Since any changes in fair value are completely offset by a change in fair value of 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. We recognize revenue on derivative transactions on the transaction date, computed as the present value of the expected cash flows we expect to receive from the third party financial institution over the life of the derivative contract. The difference between the present value of these cash flows at the date of inception and the gross amount potentially received is accreted to revenue over the term of the contract. The revenue from these transactions is included within “Other revenues” on our Consolidated Statements of Income and Comprehensive Income. RJ Bank Derivatives: We enter into three-month forward foreign exchange contracts primarily to hedge the risks related to RJ Bank’s investment in their Canadian subsidiary, as well as their risk resulting from transactions denominated in currencies other that the U.S. dollar. The majority of these derivatives are designated as net investment hedges. The effective portion of the gain or loss related to the designated derivative instruments is recorded, net of tax, in shareholders’ equity as part of the cumulative translation adjustment component of AOCI with such balance impacting “Other revenues” 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 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 generally match at inception, there is no expected ineffectiveness to be recorded in earnings. The fair value of our forward foreign exchange contracts is determined by obtaining valuations from a third party pricing service or model. These valuations are based on observable inputs such as spot rates, foreign exchange rates and both U.S. and foreign 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. We enter into floating-rate advances from the FHLB to, in part, fund these assets and then enter into interest rate swaps which swap variable interest payments on this debt for fixed interest payments. These interest rate swaps are designated as cash flow hedges and effectively fix our cost of funds associated with these assets to mitigate a portion of the market risk. The effective portion o |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisition announcements during fiscal year 2017 In April 2017, we announced we had entered into a definitive agreement to acquire 100% of the outstanding shares of Scout Investments, Inc. (the “Scout Group”), an asset management and distribution entity, from UMB Financial Corporation. The Scout Group includes Scout Investments (“Scout”) and its Reams Asset Management division (“Reams”), as well as Scout Distributors. The addition of Scout, an equity asset manager, and Reams, an institutional-focused fixed income specialist, broadens the investment solutions available to our clients. As of December 31, 2016, Scout and its Reams division had combined assets under management and advisement of approximately $27 billion . The Scout Group was included in our Asset Management segment upon completion of this acquisition, which occurred on November 17, 2017. Acquisitions completed during fiscal year 2016 Mummert & Company Corporate Finance GmbH (“Mummert”) In June 2016 , we completed our acquisition of all of the outstanding shares of Mummert, a middle market M&A advisory firm, headquartered in Munich, Germany, that was focused primarily on the technology, industrial, healthcare, consumer and business services sectors. Mummert expanded our investment banking capabilities in Europe, and has been integrated into our Capital Markets segment. For purposes of certain acquisition-related financial reporting requirements, the Mummert acquisition was 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. See Note 17 for information regarding the contingent consideration associated with the Mummert transaction. MacDougall, MacDougall & MacTier Inc. (“3Macs”) In August 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 operate within RJ Ltd. in our Private Client Group segment. For purposes of certain acquisition-related financial reporting requirements, the 3Macs acquisition was 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 In September 2016 , we completed an acquisition of certain specified assets and the assumption of certain specified liabilities of the U.S. Private Client Services unit of Deutsche Bank Wealth Management (“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 the firm. Alex. Brown is included in our Private Client Group segment. For purposes of certain acquisition-related financial reporting requirements, the Alex. Brown acquisition was 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 . As part of the acquisition of Alex. Brown, we assumed the liability for certain DBRSU awards, including the associated plan terms and conditions, which will ultimately be settled in DB common shares if the conditions outlined in the plan are met. At various dates throughout fiscal year 2016, we purchased DB common shares to serve as an economic hedge to the DBRSU liability. See Note 2 and Note 20 for further information on this liability. Acquisition-related expenses The “Acquisition-related expenses” presented in our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2017 and 2016 pertain to certain incremental expenses incurred in connection with the acquisitions described above. The table below presents a summary of acquisition-related expenses incurred in each respective period. Our acquisition-related expenses associated with our fiscal year 2015 acquisitions were not significant. Year ended September 30, $ in thousands 2017 2016 Severance $ 5,859 $ 866 Acquisition and integration-related incentive compensation costs 5,474 — Early termination costs of assumed contracts 1,329 — Information systems integration costs 1,380 21,752 Legal and regulatory 3,192 8,334 Post-closing purchase price contingency (3,345 ) — DBRSU obligation and related hedge 770 4,837 All other 3,336 4,917 Total acquisition-related expenses $ 17,995 $ 40,706 In the table above: • Severance expenses primarily arose from the 3Macs acquisition. Such costs included severance costs as well as any forgiven employee loan balances and any unamortized balance of the prepaid compensation asset associated with terminated associates, which was not collected. See Note 9 for more information. • Acquisition and integration-related incentive compensation costs are primarily comprised of non-recurring RSU grants made to certain employees and consultants for acquisition-related purposes. • DBRSU obligation and related hedge expenses for the year ended September 30, 2017 included a loss on the DBRSU awards related to a DB rights offering during the year. This loss was partially offset by a related gain on the DB shares that act as an economic hedge to this obligation. Expenses for the year ended September 30, 2016 represented the pre-Alex. Brown closing date unrealized loss on the DB shares. See Note 20 for more information. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Our “Financial instruments owned” and “Financial instruments sold, but not yet purchased” on our Consolidated Statements of Financial Condition are recorded at fair value under GAAP. See Note 2 for further information about such instruments and our significant accounting policies related to fair value. The tables below presents assets and liabilities measured at fair value on a recurring and nonrecurring basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included in our Consolidated Statements of Financial Condition. See Note 6 for additional information. $ in thousands Quoted prices Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of Assets at fair value on a recurring basis Trading instruments Municipal and provincial obligations $ 83 $ 221,884 $ — $ — $ 221,967 Corporate obligations 9,361 81,577 — — 90,938 Government and agency obligations 6,354 28,977 — — 35,331 Agency MBS and CMOs 913 133,070 — — 133,983 Non-agency CMOs and ABS — 28,442 5 — 28,447 Total debt securities 16,711 493,950 5 — 510,666 Equity securities 16,090 389 — — 16,479 Brokered certificates of deposit — 31,492 — — 31,492 Other 32 — 5,594 (1) — 5,626 Total trading instruments 32,833 525,831 5,599 — 564,263 Available-for-sale securities Agency MBS and CMOs — 2,081,079 — — 2,081,079 Other securities 1,032 — — — 1,032 ARS preferred securities — — 106,171 — 106,171 Total available-for-sale securities 1,032 2,081,079 106,171 — 2,188,282 Derivative assets Interest rate contracts Matched book — 288,035 — — 288,035 Other — 86,436 — (55,728 ) 30,708 Foreign exchange contracts — 32 — — 32 Total derivative assets — 374,503 — (55,728 ) 318,775 Private equity investments Measured at fair value — — 88,885 — 88,885 Measured at NAV 109,894 Total private equity investments — — 88,885 — 198,779 Other investments (2) 220,312 332 336 — 220,980 Total assets at fair value on a recurring basis $ 254,177 $ 2,981,745 $ 200,991 $ (55,728 ) $ 3,491,079 Assets at fair value on a nonrecurring basis Bank loans, net Impaired loans $ — $ 17,474 $ 23,994 $ — $ 41,468 Loans held for sale (3) — 11,285 — — 11,285 Total bank loans, net — 28,759 23,994 — 52,753 Other Assets: OREO — 880 — — 880 Total assets at fair value on a nonrecurring basis $ — $ 29,639 $ 23,994 $ — $ 53,633 (continued on next page) $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of Liabilities at fair value on a recurring basis Trading instruments sold but not yet purchased Municipal and provincial obligations $ 304 $ — $ — $ — $ 304 Corporate obligations 1,286 35,272 — — 36,558 Government obligations 167,622 — — — 167,622 Agency MBS and CMOs 2,477 — — — 2,477 Non-agency MBS and CMOs — 5,028 — — 5,028 Total debt securities 171,689 40,300 — — 211,989 Equity securities 8,118 1,342 — — 9,460 Total trading instruments sold but not yet purchased 179,807 41,642 — — 221,449 Derivative liabilities Interest rate contracts Matched book — 288,035 — — 288,035 Other — 101,893 — (59,410 ) 42,483 Foreign exchange contracts — 646 — — 646 DBRSU obligation (equity) — 25,800 — — 25,800 Total derivative liabilities — 416,374 — (59,410 ) 356,964 Total liabilities at fair value on a recurring basis $ 179,807 $ 458,016 $ — $ (59,410 ) $ 578,413 (1) 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 17 for additional information. (2) Includes $44 million of financial instruments that are related to obligations to perform under certain deferred compensation plans and DB shares with a fair value of $19 million as of September 30, 2017 which we hold as an economic hedge against the DBRSU obligation. See Notes 2 and 20 for additional information. (3) Loans classified as held for sale recorded at a fair value lower than cost. $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of 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 Equity securities 14,529 1,500 — — 16,029 Brokered certificates of deposit — 35,206 — — 35,206 Other 555 3 6,020 (1) — 6,578 Total trading instruments 32,389 675,134 6,027 — 713,550 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 Municipal obligations — — 25,147 — 25,147 Preferred securities — — 100,018 — 100,018 Total available-for-sale securities 1,417 732,816 125,165 — 859,398 Derivative assets Interest rate contracts Matched-book — 422,196 — — 422,196 Other — 163,433 — (107,539 ) 55,894 Foreign exchange contracts — 2,016 — — 2,016 Total derivative assets — 587,645 — (107,539 ) 480,106 Private equity investments Measured at fair value — — 83,165 — 83,165 Measured at NAV 111,469 Total private equity investments — — 83,165 — 194,634 Other investments (2) 325,655 257 441 — 326,353 Total assets at fair value on a recurring basis $ 359,461 $ 1,995,852 $ 214,798 $ (107,539 ) $ 2,574,041 Assets at fair value on a nonrecurring basis Bank loans, net Impaired loans $ — $ 23,146 $ 47,982 $ — $ 71,128 Loans held for sale (3) — 18,177 — — 18,177 Total bank loans, net — 41,323 47,982 — 89,305 Other assets: OREO — 679 — — 679 Total assets at fair value on a nonrecurring basis $ — $ 42,002 $ 47,982 $ — $ 89,984 (continued on next page) $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of 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 Equity securities 18,382 — — — 18,382 Total trading instruments sold but not yet purchased 290,312 29,791 — — 320,103 Derivative liabilities Interest rate contracts Matched book — 422,196 — — 422,196 Other — 178,502 — (142,859 ) 35,643 DBRSU obligation (equity) — 17,769 — — 17,769 Total derivative liabilities — 618,467 — (142,859 ) 475,608 Total liabilities at fair value on a recurring basis $ 290,312 $ 648,258 $ — $ (142,859 ) $ 795,711 (1) 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 17 for additional information. (2) Includes $77 million of financial instruments that are related to obligations to perform under certain deferred compensation 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 and 20 for additional information. (3) Loans classified as held for sale recorded at a fair value lower than cost. Transfers between levels We had $4 million and $3 million in transfers of financial instruments from Level 1 to Level 2 during the year ended September 30, 2017 and 2016 , respectively. These transfers were a result of decreased market activity in these instruments. Our transfers from Level 2 to Level 1 were $1 million in each of the years ended September 30, 2017 and 2016 , respectively. These transfers were a result of increased market activity in these instruments. Our policy is to treat transfers between levels of the fair value hierarchy as having occurred at the end of the reporting period. Changes in Level 3 recurring fair value measurements The tables below presents the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables below may include changes in fair value that were attributable to both observable and unobservable inputs. Our policy is to treat transfers between levels of the fair value hierarchy as having occurred at the end of the reporting period. Year ended September 30, 2017 Level 3 assets at fair value Trading instruments Available-for-sale securities Private equity and other investments $ in thousands Non-agency CMOs and ABS Other ARS – ARS - Private equity investments Other investments Fair value beginning of year $ 7 $ 6,020 $ 25,147 $ 100,018 $ 83,165 $ 441 Total gains/(losses) for the year: Included in earnings 1 (2,568 ) 641 (84 ) 8,343 118 Included in other comprehensive income — — 2,344 7,705 — — Purchases and contributions — 67,316 — — 5,245 217 Sales — (65,174 ) (28,132 ) (1,468 ) (168 ) (245 ) Distributions (3 ) — — — (7,700 ) — Transfers: Into Level 3 — — — — — — Out of Level 3 — — — — — (195 ) Fair value end of year $ 5 $ 5,594 $ — $ 106,171 $ 88,885 $ 336 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 $ (1,626 ) $ — $ 7,705 $ 8,331 $ 118 Year ended September 30, 2016 Trading instruments Available-for-sale securities Private equity and other investments $ in thousands Corporate obligations Non-agency CMOs and ABS Other ARS – ARS - Private equity investments Other investments Fair value beginning of year $ 156 $ 9 $ 6,961 $ 28,015 $ 110,749 $ 77,435 $ 565 Total gains/(losses) for the year: Included in earnings (137 ) — (3,048 ) 133 136 11,517 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: Into Level 3 — — — — — — — Out of Level 3 — — — — — — — Fair value end of year $ — $ 7 $ 6,020 $ 25,147 $ 100,018 $ 83,165 $ 441 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 $ (2,752 ) $ (1,348 ) $ (9,574 ) $ 11,517 $ 2 The gains included in our Consolidated Statements of Income and Comprehensive Income for certain private equity investments for the years ended September 30, 2017 and 2016 were primarily attributable to the noncontrolling interests’ share of the net valuation adjustments. As of September 30, 2017 , 10% of our assets and 2% 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, 2017 represent 6% of our assets measured at fair value. In comparison as of September 30, 2016 , 8% 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, 2016 represented 8% of our assets measured at fair value. Level 3 instruments as a percentage of total financial instruments decreased compared to September 30, 2016 , primarily as a result of the increase in total assets measured at fair value since September 30, 2016 . The following table presents the gains/(losses) related to Level 3 recurring fair value measurements included in our Consolidated Statements of Income and Comprehensive Income. $ in thousands Net trading profits Other revenues Other comprehensive income For the year ended September 30, 2017 Total gains/(losses) included in earnings $ (2,567 ) $ 9,018 $ 10,049 Change in unrealized gains/(losses) for assets held at the end of the year $ (1,625 ) $ 8,449 $ 7,705 For the year ended September 30, 2016 Total gains/(losses) included in earnings $ (3,185 ) $ 11,795 $ (11,049 ) Change in unrealized gains/(losses) for assets held at the end of the year $ (2,750 ) $ 11,519 $ (10,922 ) Quantitative information about level 3 fair value measurements The table below presents the valuation techniques and significant unobservable inputs used in the valuation of a significant majority of our financial instruments classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Level 3 financial instrument $ in thousands Fair value at September 30, 2017 Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements: ARS preferred securities $ 106,171 Discounted cash flow Average discount rate 5.46% - 6.81% (6.03%) Average interest rates applicable to future interest income on the securities (1) 2.58% - 3.44% (2.72%) Prepayment year (2) 2017 - 2021 (2021) Private equity investments (not measured at NAV): $ 68,454 Income or market approach: Scenario 1 - income approach - discounted cash flow Discount rate 13% - 25% (22.4%) Terminal growth rate of cash flows 3% - 3% (3%) Terminal year 2020 - 2042 (2021) Scenario 2 - market approach - market multiple method EBITDA Multiple 5.25 - 7.0 (5.8) Weighting assigned to outcome of scenario 1/scenario 2 87%/13% $ 20,431 Transaction price or other investment-specific events (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements: Bank loans: impaired loans - residential $ 20,736 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Bank loans: impaired loans: corporate $ 3,258 Appraisal or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) (1) Future interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (2) Assumed calendar year of at least a partial redemption of the outstanding security by the issuer. (3) Certain private equity investments are valued initially at the transaction price until either our periodic review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, when any of which indicate that a change in the carrying values of these investments is appropriate. (4) The valuation techniques used for the impaired corporate loan portfolio are appraisals less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. (continued on next page) (continued from previous page) Level 3 financial instrument $ in thousands Fair value at September 30, 2016 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 5.17% - 6.36% (5.77%) Average interest rates applicable to future interest income on the securities (1) 1.23% - 1.83% (1.53%) Prepayment year (2) 2019 - 2026 (2022) Available-for-sale securities ARS Municipals - tax- exempt preferred securities $ 14,734 Discounted cash flow Average discount rate 4.62% - 5.62% (5.12%) Average interest rates applicable to future interest income on the securities (1) 0.91% - 0.91% (0.91%) Prepayment year (2) 2016 - 2021 (2021) Available-for-sale securities ARS Preferred securities $ 100,018 Discounted cash flow Average discount rate 4.87% - 6.34% (5.56%) Average interest rates applicable to future interest income on the securities (1) 1.24% - 2.51% (1.34%) Prepayment year (2) 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 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 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 (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements: Bank loans - impaired residential $ 21,909 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.2 yrs.) Bank loans - impaired corporate $ 26,073 Appraisal or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) (1) Future interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (2) Assumed calendar year of at least a partial redemption of the outstanding security by the issuer. (3) Certain private equity investments are valued initially at the transaction price until either our periodic review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, when any of which indicate that a change in the carrying values of these investments is appropriate. (4) The valuation techniques used for the impaired corporate loan portfolio are appraisals less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. 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, if any, 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/(decreases) in our investment entities’ future economic performance will have a corresponding increase/(decrease) 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 as of September 30, 2017 includes various direct and third party private equity investments 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. We anticipate 90% of these underlying assets will be liquidated over a period of five years or less, with the remaining 10% to be liquidated over a period of nine years . The table below presents the recorded value and unfunded commitments related to our private equity portfolio. Unfunded commitment $ in thousands Recorded Value RJF Noncontrolling Interest Total September 30, 2017 Private equity investments measured at NAV $ 109,894 $ 20,973 $ 2,273 $ 23,246 Private equity investments measured at fair value 88,885 Total private equity investments $ 198,779 September 30, 2016 Private equity investments measured at NAV $ 111,469 $ 27,542 $ 3,001 $ 30,543 Private equity investments measured at fair value 83,165 Total private equity investments $ 194,634 The portions of the private equity investments we do not own were $54 million and $51 million as of September 30, 2017 and September 30, 2016 , respectively, and as such are included as a component of noncontrolling interest in our Consolidated Statements of Financial Condition. Of the total private equity investments, the weighted average portion we own is $145 million or 73% and $144 million or 74% as of September 30, 2017 and September 30, 2016 , respectively. 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 (“Volcker Rule”). We have received approval from the Board of Governors of the Federal Reserve System (the “Fed”) to continue to hold the majority of our covered fund investments for up to an additional five -year conformance period, thereby extending our applicable holding period until July 2022 for such investments. 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, 2017 and 2016 , we had not elected 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 represents financial instruments in which the ending balance at September 30, 2017 and 2016 was not carried at fair value in accordance with the GAAP on our Consolidated Statements of Financial Condition: Short-term financial instruments: The carrying value of short-term financial instruments, including cash and cash equivalents, assets segregated pursuant to federal regulations and other segregated assets, repurchase agreements and reverse repurchase agreements and other collateralized financings are recorded at amounts that approximate the fair value of these instruments. These financial instruments generally expose us to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market rates. Under the fair value hierarchy, cash and cash equivalents and assets segregated pursuant to federal regulations and other segregated assets are classified as Level 1. Repurchase agreements and reverse repurchase agreements and other collateralized financings are classified as Level 2 under the fair value hierarchy as they are generally overnight and are collateralized by U.S. government or agency securities. Bank loans, net: These financial instruments are primarily comprised of loans originated or purchased by RJ Bank and include C&I loans, commercial and residential real estate loans, tax-exempt loans, as well as SBL intended to be held until maturity or payoff and are recorded at amounts that result from the application of the loans held for investment methodologies summarized in Note 2 . In addition, these financial instruments consist of loans held for sale, which are carried at the lower of cost or market value. A portion of these loans held for sale, which are carried at lower of cost or market value, as well as any impaired loans held for investment are recorded at fair value as nonrecurring fair value measurements, and therefore are excluded from the table below. Fair values for both variable and fixed-rate loans held for investment are estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. This methodology for estimating the fair value of loans does not consider other market variables and, therefore, is not based on an exit price concept. The majority of fair value determinations for these loans are classified as Level 3 under the fair value hierarchy. Refer to Note 2 for information regarding the fair value policies specific to loans held for sale. Receivables and other assets: Brokerage client receivables, receivables from brokers, dealers and clearing organizations, other receivables, and certain other assets are recorded at amounts that approximate fair value and are classified as Level 2 and 3 under the fair value hierarchy. As specified under GAAP , the FHLB and FRB stock are recorded at cost, which we have determined to approximate their estimated fair value, and are classified as Level 2 under the fair value hierarchy. Loans to financial advisors, net: These financial instruments are primarily comprised of loans provided to financial advisors or key revenue producers, primarily for recruiting, transitional cost assistance, and retention purposes. Such loans are generally repaid over a five to eight year period, and are recorded at cost less an allowance for doubtful accounts. The fair value of loans to financial advisors, net, is determined through application of a discounted cash flow analysis, based on contractual maturities of the underlying loans discounted at the current market interest rates associated with such loans. This methodology for estimating the fair value of these loans does not consider other market variables and, therefore, is not based on an exit price concept. Loans to financial advisors, net are classified as Level 3 under the fair value hierarchy. Securities borrowed and securities loaned: Securities borrowed and securities loaned are recorded at amounts which approximate fair value and are primarily classified as Level 2 under the fair value hierarchy. Bank deposits: The fair values for demand deposits are equal to the amount payable on demand at the reporting date (i.e., carrying amounts). The carrying amounts of variable-rate money market and savings accounts approximate their fair values at the reporting date as these are short-term in nature. Due to their demand or short-term nature, the demand deposits and variable rate money market and savings accounts are classified as Level 2 under the fair value hierarchy. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of expected monthly maturities on time deposits. These fixed rate certificates of deposit are classified as Level 3 under the fair value hierarchy. Payables: Brokerage client payables, payables to brokers, dealers and clearing organizations, and other payables are recorded at amounts that approximate fair value and are classified as Level 2 under the fair value hierarchy. Other borrowings: The fair value of the mortgage note payable associated with the financing of our Saint Petersburg, Florida corporate offices is based upon an estimate of the current market rates for similar loans. The carrying amount of the remaining components of our other borrowings approximate their fair value due to the relative short-term nature of such borrowings, some of which are day-to-day. In addition to the mortgage note payable, the portion of other borrowings which are not “day-to-day” are primarily comprised of RJ Bank ’s borrowings from the FHLB which, by their nature, reflect terms that approximate current market rates for similar loans. Under the fair value hierarchy, our other borrowings are classified as Level 2. Senior notes payable: The fair value of our senior notes payable is based upon recent trades of those or other similar debt securities in the market. Off-balance sheet financial instruments: The fair value of unfunded commitments to extend credit is based on a methodology similar to that described above for bank loans and further adjusted for the probability of funding. The fair value of these unfunded lending commitments, in addition to the fair value of other off-balance sheet financial instruments, are classified as Level 3 under the fair value hierarchy. See Note 22 for further discussion of off-balance sheet financial instruments. The table below presents 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. The carrying amounts below exclude financial instruments which have been recorded at fair value and those recorded at amounts which approximate fair value in the Consolidated Statements of Financial Condition. $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total estimated fair value Carrying amount September 30, 2017 Financial assets: Bank loans, net $ — $ 23,001 $ 16,836,745 $ 16,859,746 $ 16,954,042 Loans to financial advisors, net $ — $ — $ 698,862 $ 698,862 $ 863,647 Financial liabilities: Bank deposits $ — $ 17,417,678 $ 313,359 $ 17,731,037 $ 17,732,362 Other borrowings $ — $ 29,278 $ — $ 29,278 $ 28,813 Senior notes payable $ — $ 1,647,696 $ — $ 1,647,696 $ 1,548,839 September 30, 2016 Financial assets: Bank loans, net $ — $ 196,109 $ 14,925,802 $ 15,121,911 $ 15,121,430 Loans to financial advisors, net $ — $ — $ 699,733 $ 699,733 $ 826,776 Financial liabilities: Bank deposits $ — $ 13,947,310 $ 318,228 $ 14,265,538 $ 14,262,547 Other borrowings $ — $ 34,520 $ — $ 34,520 $ 33,391 Senior notes payable $ 362,180 $ 1,452,071 $ — $ 1,814,251 $ 1,680,587 |
AVAILABLE FOR SALE SECURITIES
AVAILABLE FOR SALE SECURITIES | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity 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. See Note 2 for a discussion of our available-for-sale securities accounting policies, including the fair value determination process. The amortized cost and fair values of available-for sale-securities are as follows: $ in thousands Cost basis Gross unrealized gains Gross unrealized losses Fair value September 30, 2017 Agency MBS and CMOs $ 2,089,153 $ 1,925 $ (9,999 ) $ 2,081,079 Other securities 1,575 — (543 ) 1,032 Total RJ Bank available-for-sale securities 2,090,728 1,925 (10,542 ) 2,082,111 ARS preferred securities 101,674 4,497 — 106,171 Total available-for-sale securities $ 2,192,402 $ 6,422 $ (10,542 ) $ 2,188,282 September 30, 2016 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 ARS municipal obligations 27,491 14 (2,358 ) 25,147 ARS 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 (1) As of September 30, 2016 , the non-credit portion of unrealized losses related to non-agency CMOs with previously recorded OTTI before taxes was $2 million , recorded in AOCI . See Note 18 for additional information. During the year ended September 30, 2017 , we sold the remainder of our non-agency CMOs . See Note 4 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 and 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, 2017 $ in thousands Within one year After one but within five years After five but within ten years After ten years Total Agency MBS and CMOs: Amortized cost $ — $ 110,510 $ 675,502 $ 1,303,141 $ 2,089,153 Carrying value — 110,019 673,454 1,297,606 2,081,079 Weighted-average yield — 1.96 % 1.87 % 1.97 % 1.94 % Other securities: Amortized cost $ — $ — $ — $ 1,575 $ 1,575 Carrying value — — — 1,032 1,032 Weighted-average yield — — — — — Sub-total agency MBS and CMOs and other securities: Amortized cost $ — $ 110,510 $ 675,502 $ 1,304,716 $ 2,090,728 Carrying value — 110,019 673,454 1,298,638 2,082,111 Weighted-average yield — 1.96 % 1.87 % 1.97 % 1.94 % ARS preferred securities: Amortized cost $ — $ — $ — $ 101,674 $ 101,674 Carrying value — — — 106,171 106,171 Weighted-average yield — — — 2.10 % 2.10 % Total available-for-sale securities: Amortized cost $ — $ 110,510 $ 675,502 $ 1,406,390 $ 2,192,402 Carrying value — 110,019 673,454 1,404,809 2,188,282 Weighted-average yield — 1.96 % 1.87 % 1.98 % 1.95 % 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, 2017 Less than 12 months 12 months or more Total $ in thousands Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses Agency MBS and CMOs $ 1,119,715 $ (5,621 ) $ 295,528 $ (4,378 ) $ 1,415,243 $ (9,999 ) Other securities — — 1,032 (543 ) 1,032 (543 ) Total $ 1,119,715 $ (5,621 ) $ 296,560 $ (4,921 ) $ 1,416,275 $ (10,542 ) September 30, 2016 Less than 12 months 12 months or more Total $ in thousands Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses 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 ) 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 and Non-agency 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, 2017 , of the 133 U.S. government-sponsored enterprise MBS and CMOs in an unrealized loss position, 100 were in a continuous unrealized loss position for less than 12 months and 33 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. At September 30, 2017 , debt securities we held from FNMA and FHLMC had an amortized cost of $1.43 billion and $586 million , respectively, and a fair value of $1.42 billion and $582 million , respectively. During the year ended September 30, 2017 , we sold the remainder of our non-agency CMOs . In periods in which we held such securities, all individual non-agency securities were evaluated for OTTI on a quarterly basis. Only those non-agency CMOs whose amortized cost basis we did not expect to recover in full were considered to be other than temporarily impaired, as we had the ability and intent to hold such securities. There were $66 million in proceeds and a gain of $1 million , which is included in “Other revenues” on our Consolidated Statements of Income and Comprehensive Income, from the sale of agency MBS and CMOs and non-agency CMO available-for-sale securities during the year ended September 30, 2017 . During the year ended September 30, 2016 , there were $8 million in proceeds, resulting in an insignificant gain, from sales of non-agency CMO available-for-sale securities. During the year ended September 30, 2015 , there were $12 million in proceeds and a loss of $1 million from the sale of non-agency CMO available-for-sale securities. 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 held as of September 30, 2017 was $120 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. All of our ARS securities are evaluated for OTTI on a quarterly basis. As of September 30, 2017 , there were no ARS with a fair value less than cost basis. During the year ended September 30, 2017 , we sold the remainder of our ARS municipal obligations. In periods in which we held such securities, certain ARS had 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 had the ability and intent to hold these ARS and expected to recover the entire cost basis and therefore concluded that none of the potential impairment was related to potential credit loss. Sales or redemptions of ARS for the year-ended September 30, 2017 primarily related to ARS municipal obligations and resulted in aggregate proceeds of $30 million and a gain of $1 million , which is included in “Other revenues” on our Consolidated Statements of Income and Comprehensive Income. During the year ended September 30, 2016 , sales or redemptions of ARS resulted in proceeds of $3 million and an insignificant gain. During the year ended September 30, 2015 , sales or redemptions of ARS resulted in proceeds of $64 million and a gain of $11 million primarily related to ARS municipal obligations. Other-than-temporarily impaired securities There is no intent to sell our ARS and it was not more likely than not that we would be required to sell these securities as of September 30, 2017 . 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, $ in thousands 2017 2016 2015 Amount related to credit losses on securities we held at the beginning of the year $ 8,107 $ 11,847 $ 18,703 Decreases to the amount related to credit losses for securities sold during the year (8,107 ) (3,740 ) (6,856 ) Amount related to credit losses on securities we held at the end of the year $ — $ 8,107 $ 11,847 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” in our Consolidated Statements of Financial Condition. Cash flows related to our derivative contracts are included within operating activities in the Consolidated Statements of Cash Flows. 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 interest rate contracts as part of our fixed income business to facilitate client transactions or to actively manage risk exposures that arise from our client activity, including a portion of our trading inventory. The majority of these derivatives are traded in the over-the-counter market and are executed directly with another counterparty or are cleared and settled through a clearing organization. We also facilitate matched book derivative transactions in which RJFP enters into interest rate derivative transactions with clients. For every derivative transaction RJFP enters into with a client, RJFP enters into an offsetting derivative on terms that mirror the client transaction with a credit support provider, which is a third party financial institution. Any collateral required to be exchanged under these derivative contracts is administered directly between the client and the third-party financial institution. Due to this pass-through transaction structure, RJFP has completely mitigated the market and credit risk on these derivative contracts. As a result, derivatives for which the fair value is in an asset position have an equal and offsetting derivative liability. RJFP only has credit risk on its uncollected derivative transaction fee revenues. The receivable for uncollected derivative transaction fee revenues of RJFP was $5 million and $7 million at September 30, 2017 and 2016 , respectively, and is included in “Other receivables” on our Consolidated Statements of Financial Condition. Derivatives arising from RJ Bank’s business operations We enter into forward foreign exchange contracts and interest rate swaps to hedge certain exposures arising out of RJ Bank’s business operations. Each of these activities is described in the “Derivative assets and derivative liabilities” section of Note 2 and below. We enter into three-month forward foreign exchange contracts primarily to hedge the risks related to RJ Bank’s investment in their Canadian subsidiary as well as their risk resulting from transactions denominated in currencies other than the U.S. dollar. The majority of these derivatives are designated as net investment hedges. 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. RJ Bank enters into floating-rate advances from the FHLB to, in part, fund these assets and then enters into interest rate swaps which swap variable interest payments on this debt for fixed interest payments. These interest rate swaps are designated as cash flow hedges and effectively fix RJ Bank’s cost of funds associated with these assets to mitigate a portion of the market risk. Derivative arising from our acquisition of Alex. Brown As part of our acquisition of Alex. Brown, we 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, provided the performance metrics are achieved. The DBRSU obligation results in a derivative, the fair value and notional of which is measured by multiplying the number of outstanding DBRSU awards to be settled in DB common shares as of the end of the reporting period by the end of reporting period DB share price, as traded on the NYSE. Counterparty netting and collateral related to derivative contracts To reduce credit exposure on certain of our derivative transactions, we may enter into a master netting arrangement that allows for net settlement of all derivative transactions with each counterparty. In addition, the credit support annex allows parties to the master netting 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. Where permitted, we elect to net-by-counterparty certain derivative contracts entered into under a legally enforceable master netting agreement and, therefore, the fair value of those derivative contracts are netted by counterparty in the Consolidated Statements of Financial Condition. As we elect to net-by-counterparty the fair value of such derivative contracts, we also net-by-counterparty cash collateral exchanged as part of those derivative agreements. We may also require certain counterparties to make a deposit at the inception of a derivative agreement, referred to as “initial margin.” This initial margin is included in “Other payables” on our Consolidated Statements of Financial Condition. We are also required to maintain cash or marketable security deposits with the clearing organizations we utilize to clear certain of our interest rate derivative transactions. This initial margin is included as a component of “Receivables from brokers, dealers and clearing organizations” in our Consolidated Statements of Financial Condition. On a daily basis we also pay cash to or receive cash from these clearing organizations due to changes in the fair value of the derivatives which they clear. Such payments are referred to as “variation margin.” During the quarter ended March 31, 2017, the Chicago Mercantile Exchange, a clearing organization we utilize to clear certain of our interest rate derivatives, adopted a rule change which requires variation margin to be considered settlement of the related derivatives instead of collateral. The impact of this change on our Consolidated Statements of Financial Condition was to reduce the gross fair value of these derivative assets and/or liabilities by the amount of variation margin received or paid on the related derivatives. Prior to the quarter ending March 31, 2017, such balances were included as a component of “Receivables from brokers, dealers and clearing organizations” when such balances were in an asset position, or “Other payables” when such balances were in a liability position, on our Consolidated Statements of Financial Condition. RJ Bank provides to counterparties for the benefit of its U.S. subsidiaries, a guarantee of payment in the event of the subsidiary’s 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 generally not required to post collateral with and do not generally receive collateral from the respective counterparties. Derivative balances included in our financial statements The table below presents the gross fair value and notional amount of derivative contracts by product type, the amounts of counterparty and cash collateral netting in our Consolidated Statements of Financial Condition, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting under GAAP. September 30, 2017 September 30, 2016 $ in thousands Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate contracts: Matched book $ 288,035 $ 288,035 $ 2,766,488 $ 422,196 $ 422,196 $ 2,938,590 Other 86,436 100,503 4,931,809 163,433 151,831 4,285,033 Foreign exchange contracts 3 530 437,783 620 — 313,562 DBRSU obligation (equity) (1) — 25,800 25,800 — 17,769 17,769 Subtotal 374,474 414,868 8,161,880 586,249 591,796 7,554,954 Derivatives designated as hedging instruments Interest rate contracts — 1,390 850,000 — 26,671 550,000 Foreign exchange contracts 29 116 1,048,646 1,396 — 753,373 Subtotal 29 1,506 1,898,646 1,396 26,671 1,303,373 Total gross fair value/notional amount 374,503 416,374 $ 10,060,526 587,645 618,467 $ 8,858,327 Offset in the Statements of Financial Condition Counterparty netting (6,045 ) (6,045 ) (55,498 ) (55,498 ) Cash collateral netting (49,683 ) (53,365 ) (52,041 ) (87,361 ) Total amounts offset (55,728 ) (59,410 ) (107,539 ) (142,859 ) Net amounts presented in the Statements of Financial Condition 318,775 356,964 480,106 475,608 Gross amounts not offset in the Statements of Financial Condition Financial instruments (2) (293,340 ) (288,035 ) (451,224 ) (424,633 ) Cash received/(paid) — — — (26,671 ) Subtotal (293,340 ) (288,035 ) (451,224 ) (451,304 ) Total $ 25,435 $ 68,929 $ 28,882 $ 24,304 (1) The DBRSU obligation is not subject to an enforceable master netting arrangement or other similar arrangement. However, we hold shares of DB as an economic hedge against this obligation with a fair value of $19 million and $12 million as of September 30, 2017 and 2016 , respectively, which are a component of “Other investments” on our Consolidated Statements of Financial Condition. See additional discussion of the DBRSUs in Note 20 . (2) Although the matched book 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. As a result, we present the matched book amounts net in the table above. Gains/(losses) recognized in AOCI, net of income taxes, on derivatives designated as hedging instruments are as follows (see Note 18 for additional information): Year ended September 30, $ in thousands 2017 2016 2015 Interest rate contracts (cash flow hedges) $ 23,232 $ (11,833 ) $ (4,650 ) Foreign exchange contracts (net investment hedges) (26,281 ) (6,721 ) 60,331 Total gains/(losses) recognized in AOCI, net of taxes $ (3,049 ) $ (18,554 ) $ 55,681 There was no significant 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, 2017 , 2016 or 2015 . We expect to reclassify an estimated $4 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. Gains/(losses) on derivatives not designated as hedging instruments recognized on the Consolidated Statements of Income and Comprehensive Income are as follows: Location of the impact recognized on derivatives included in the Consolidated Statements of Income and Comprehensive Income Gain/(loss) recognized during the year ended September 30, $ in thousands 2017 2016 2015 Interest rate contracts: Matched book Other revenues $ 36 $ 92 $ 901 Other Net trading profit $ 7,895 $ 2,819 $ 3,107 Foreign exchange contracts Other revenues $ (19,961 ) $ (2,662 ) $ 20,459 DBRSUs Compensation, commissions and benefits expense $ (5,648 ) $ 2,457 $ — DBRSUs Acquisition-related expenses $ (2,383 ) $ — $ — Acquisition-related expenses in the table above include the impact on the DBRSU obligation of the DB rights offering during fiscal year 2017 and from forfeitures which occurred during the periods presented. The impact of the DB rights offering on the DBRSU obligation was partially offset by a gain on the rights offering related to the shares of DB we hold as an economic hedge, which was also reported in acquisition-related expenses. Risks associated with, and our risk mitigation related to, our derivative contracts Credit risk We are exposed to credit losses in the event of nonperformance by the counterparties to forward foreign exchange derivative agreements and interest rate contracts that are not cleared through a clearing organization. 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. We may require initial margin or 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. Our only exposure to credit risk in the 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. Interest rate and foreign exchange risk We are exposed to interest rate risk related to certain of our interest rate derivative agreements. We are also exposed to foreign exchange risk related to our forward foreign exchange derivative agreements. On a daily basis, we monitor our risk exposure in our derivative agreements 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. Derivatives with credit-risk-related contingent features Certain of the derivative instruments arising from our interest rate contracts and 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 both September 30, 2017 and 2016 was not material. |
COLLATERALIZED AGREEMENTS AND F
COLLATERALIZED AGREEMENTS AND FINANCINGS | 12 Months Ended |
Sep. 30, 2017 | |
Offsetting [Abstract] | |
COLLATERALIZED AGREEMENTS AND FINANCINGS | COLLATERALIZED AGREEMENTS AND FINANCINGS Collateralized agreements are reverse repurchase agreements and securities borrowed. Collateralized financings are repurchase agreements and securities loaned. We enter into these transactions in order to facilitate client activities, invest excess cash, acquire securities to cover short positions and finance certain firm activities. The significant accounting policies governing our collateralized agreements and financings are described in Note 2 . For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions because the conditions for netting as specified by GAAP are not met. Our reverse repurchase agreements, repurchase agreements, securities borrowing and securities lending transactions 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 parties to the transaction. Although not offset on the Consolidated Statements of Financial Condition, these transactions are included in the following table. Assets Liabilities $ in thousands Reverse repurchase agreements Securities borrowed Repurchase agreements Securities loaned September 30, 2017 Gross amounts of recognized assets/liabilities $ 404,462 $ 138,319 $ 220,942 $ 383,953 Gross amounts offset in the Statements of Financial Condition — — — — Net amounts presented in the Statements of Financial Condition 404,462 138,319 220,942 383,953 Gross amounts not offset in the Statements of Financial Condition (404,462 ) (134,304 ) (220,942 ) (373,132 ) Net amount $ — $ 4,015 $ — $ 10,821 September 30, 2016 Gross amounts of recognized assets/liabilities $ 470,222 $ 170,860 $ 193,229 $ 677,761 Gross amounts offset in the Statements of Financial Condition — — — — Net amounts presented in the Statements of Financial Condition 470,222 170,860 193,229 677,761 Gross amounts not offset in the Statements of Financial Condition (470,222 ) (167,169 ) (193,229 ) (664,870 ) Net amount $ — $ 3,691 $ — $ 12,891 The required market value of the collateral associated with collateralized agreements and financings generally exceeds the amount financed. Accordingly, the total collateral received under reverse repurchase agreements and the total amount of collateral posted under repurchase agreements exceeds the carrying value of these agreements in our Consolidated Statements of Financial Condition. 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. Collateral received and pledged We receive cash and securities as collateral, primarily in connection with reverse repurchase agreements and other collateralized financings, securities borrowed, derivative transactions not transacted through a clearing organization, and client margin loans. The collateral we receive reduces our credit exposure to individual counterparties. 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 delivered or repledged, to satisfy one of our purposes described above: September 30, $ in thousands 2017 2016 Collateral we received that is available to be delivered or repledged $ 3,030,736 $ 2,925,335 Collateral that we delivered or repledged $ 1,068,912 $ 1,536,393 Encumbered assets We pledge certain of our financial instruments to collateralize either repurchase agreements or other secured borrowings, or to satisfy our settlement requirements with counterparties or clearing organizations 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, $ in thousands 2017 2016 Financial instruments owned, at fair value, pledged to counterparties that: Had the right to deliver or repledge $ 363,739 $ 440,642 Did not have the right to deliver or repledge $ 44,930 $ 18,788 Repurchase agreements, repurchase-to-maturity transactions and securities lending transactions accounted for as secured borrowings The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings: $ in thousands Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total As of September 30, 2017: Repurchase agreements Government and agency obligations $ 107,284 $ — $ — $ — $ 107,284 Agency MBS and CMOs 113,658 — — — 113,658 Total Repurchase Agreements 220,942 — — — 220,942 Securities lending Equity securities 383,953 — — — 383,953 Total $ 604,895 $ — $ — $ — $ 604,895 Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the table within this footnote $ 604,895 Amounts related to repurchase agreements and securities lending transactions not included in the table within this footnote $ — As of September 30, 2016: 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 table within this footnote $ 870,990 Amounts related to repurchase agreements and securities lending transactions not included in the table within this footnote $ — 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, 2017 and 2016 , we did not have any “repurchase-to-maturity” agreements. |
BANK LOANS, NET
BANK LOANS, NET | 12 Months Ended |
Sep. 30, 2017 | |
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 , and 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. See Note 2 for a discussion of accounting policies related to bank loans and allowances for losses. The following tables present 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. “Loans held for sale, net” and “Total loans held for investment, net” in the table below are presented net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs. September 30, 2017 2016 2015 $ in thousands Balance % Balance % Balance % Loans held for sale, net $ 70,316 — $ 214,286 1 % $ 119,519 1 % Loans held for investment: C&I loans 7,385,910 43 % 7,470,373 48 % 6,928,018 52 % CRE construction loans 112,681 1 % 122,718 1 % 162,356 1 % CRE loans 3,106,290 18 % 2,554,071 17 % 2,054,154 16 % Tax-exempt loans 1,017,791 6 % 740,944 5 % 484,537 4 % Residential mortgage loans 3,148,730 18 % 2,441,569 16 % 1,962,614 15 % SBL 2,386,697 14 % 1,904,827 12 % 1,481,504 11 % Total loans held for investment 17,158,099 15,234,502 13,073,183 Net unearned income and deferred expenses (31,178 ) (40,675 ) (32,424 ) Total loans held for investment, net 17,126,921 15,193,827 13,040,759 Total loans held for sale and investment 17,197,237 100 % 15,408,113 100 % 13,160,278 100 % Allowance for loan losses (190,442 ) (197,378 ) (172,257 ) Bank loans, net $ 17,006,795 $ 15,210,735 $ 12,988,021 September 30, 2014 2013 $ in thousands Balance % Balance % Loans held for sale, net $ 45,988 — $ 110,292 1 % Loans held for investment: C&I loans 6,422,347 58 % 5,246,005 59 % CRE construction loans 94,195 1 % 60,840 1 % CRE loans 1,689,163 15 % 1,283,046 14 % Tax-exempt loans 122,218 1 % — — Residential mortgage loans 1,751,747 16 % 1,745,650 19 % SBL 1,023,748 9 % 555,805 6 % Total loans held for investment 11,103,418 8,891,346 Net unearned income and deferred expenses (37,533 ) (43,936 ) Total loans held for investment, net 11,065,885 8,847,410 Total loans held for sale and investment 11,111,873 100 % 8,957,702 100 % Allowance for loan losses (147,574 ) (136,501 ) Bank loans, net $ 10,964,299 $ 8,821,201 At September 30, 2017 , the FHLB had a blanket lien on RJ Bank ’s residential mortgage loan portfolio as security for the repayment of certain borrowings. See Note 14 for more information regarding borrowings from the FHLB . Loans held for sale RJ Bank originated or purchased $1.67 billion , $1.80 billion and $1.24 billion of loans held for sale during the years ended September 30, 2017 , 2016 and 2015 , respectively. Proceeds from the sale of held for sale loans amounted to $439 million , $383 million and $213 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. Net gains resulting from such sales amounted to $2 million in each of the years ended September 30, 2017 , 2016 and 2015 . 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 insignificant in each of the years ended September 30, 2017 , 2016 and 2015 . Purchases and sales of loans held for investment The following table presents purchases and sales of any loans held for investment by portfolio segment: $ in thousands C&I CRE Residential mortgage Total Year ended September 30, 2017 Purchases $ 536,627 $ 63,542 $ 264,340 $ 864,509 Sales $ 341,196 $ — $ — $ 341,196 Year ended September 30, 2016 Purchases $ 457,503 $ 24,869 $ 371,710 $ 854,082 Sales $ 172,968 $ — $ — $ 172,968 Year ended September 30, 2015 Purchases $ 792,921 $ — $ 220,311 $ 1,013,232 Sales $ 108,983 $ — $ — $ 108,983 Sales in the table above represent 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. Aging analysis of loans held for investment The following table presents an analysis of the payment status of loans held for investment: $ in thousands 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total loans held for investment (2) As of September 30, 2017: C&I loans $ — $ — $ — $ 5,221 $ 7,380,689 $ 7,385,910 CRE construction loans — — — — 112,681 112,681 CRE loans — — — — 3,106,290 3,106,290 Tax-exempt loans — — — — 1,017,791 1,017,791 Residential mortgage loans: First mortgage loans 1,853 — 1,853 33,718 3,086,701 3,122,272 Home equity loans/lines 248 — 248 31 26,179 26,458 SBL — — — — 2,386,697 2,386,697 Total loans held for investment, net $ 2,101 $ — $ 2,101 $ 38,970 $ 17,117,028 $ 17,158,099 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 (1) Includes $18 million and $54 million of nonaccrual loans at September 30, 2017 and 2016 , respectively, which are performing pursuant to their contractual terms. (2) Excludes any net unearned income and deferred expenses. Other real estate owned, included in “Other assets” on our Consolidated Statements of Financial Condition was $5 million at both September 30, 2017 and September 30, 2016 . The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $18 million and $21 million at September 30, 2017 and 2016 , respectively. Impaired loans and troubled debt restructurings The following table provides a summary of RJ Bank ’s impaired loans: September 30, 2017 2016 $ in thousands Gross recorded investment Unpaid principal balance Allowance for losses Gross recorded investment Unpaid principal balance Allowance for losses Impaired loans with allowance for loan losses: (1) C&I loans $ 5,221 $ 6,160 $ 1,963 $ 35,194 $ 35,872 $ 13,351 Residential - first mortgage loans 23,977 31,100 2,504 30,393 41,337 3,147 Total 29,198 37,260 4,467 65,587 77,209 16,498 Impaired loans without allowance for loan losses: (2) CRE loans — — — 4,230 11,611 — Residential - first mortgage loans 16,737 24,899 — 17,809 26,486 — Total 16,737 24,899 — 22,039 38,097 — Total impaired loans $ 45,935 $ 62,159 $ 4,467 $ 87,626 $ 115,306 $ 16,498 (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 $27 million of residential first mortgage TDR ’s at September 30, 2017 , and $4 million CRE and $28 million residential first mortgage TDR ’s at September 30, 2016 . 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, $ in thousands 2017 2016 2015 Average impaired loan balance: C&I loans $ 17,540 $ 18,112 $ 11,311 CRE loans 694 4,474 14,694 Residential - first mortgage loans 43,845 51,554 59,049 Total $ 62,079 $ 74,140 $ 85,054 Interest income recognized: Residential - first mortgage loans $ 1,253 $ 1,413 $ 1,426 Total $ 1,253 $ 1,413 $ 1,426 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 was as follows: $ in thousands Pass Special mention Substandard Doubtful Total September 30, 2017 C&I $ 7,232,777 $ 63,964 $ 89,169 $ — $ 7,385,910 CRE construction 112,681 — — — 112,681 CRE 3,048,847 57,315 128 — 3,106,290 Tax-exempt 1,017,791 — — — 1,017,791 Residential mortgage: First mortgage 3,068,290 8,467 45,515 — 3,122,272 Home equity 26,352 75 31 — 26,458 SBL 2,386,697 — — — 2,386,697 Total $ 16,893,435 $ 129,821 $ 134,843 $ — $ 17,158,099 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 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 LTV s are updated using the most recently available information (generally updated every six months) 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. Residential mortgage loans with estimated LTV s in excess of 100% represent less than 1% of the residential mortgage loan portfolio. 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 $ in thousands C&I CRE construction CRE Tax-exempt Residential mortgage SBL Total Year ended September 30, 2017 Balance at beginning of year $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 Provision/(benefit) for loan losses 7,502 (101 ) (172 ) 2,281 3,944 (467 ) 12,987 Net (charge-offs)/recoveries: Charge-offs (26,088 ) — — — (918 ) — (27,006 ) Recoveries 340 — 5,013 — 1,001 — 6,354 Net (charge-offs)/recoveries (25,748 ) — 5,013 — 83 — (20,652 ) Foreign exchange translation adjustment 446 (92 ) 375 — — — 729 Balance at end of year $ 119,901 $ 1,421 $ 41,749 $ 6,381 $ 16,691 $ 4,299 $ 190,442 Year ended September 30, 2016 Balance at beginning of year $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 Provision/(benefit) for loan losses 23,051 (1,023 ) 5,997 (1,849 ) 191 1,800 28,167 Net (charge-offs)/recoveries: Charge-offs (2,956 ) — — — (1,470 ) — (4,426 ) Recoveries — — — — 1,417 — 1,417 Net (charge-offs)/recoveries (2,956 ) — — — (53 ) — (3,009 ) Foreign exchange translation adjustment (17 ) (70 ) 50 — — — (37 ) Balance at end of year $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 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 (1,388 ) 917 23,570 Net (charge-offs)/recoveries: Charge-offs (1,191 ) — — — (1,667 ) — (2,858 ) Recoveries 611 — 3,773 — 1,231 — 5,615 Net (charge-offs)/recoveries (580 ) — 3,773 — (436 ) — 2,757 Foreign exchange translation adjustment (1,067 ) (63 ) (514 ) — — — (1,644 ) Balance at end of year $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 The following table presents, by loan portfolio segment, RJ Bank ’s recorded investment (excluding any net unearned income and deferred expenses) and the related allowance for loan losses. Loans held for investment Allowance for loan losses Recorded investment $ in thousands Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total September 30, 2017 C&I $ 1,963 $ 117,938 $ 119,901 $ 5,221 $ 7,380,689 $ 7,385,910 CRE construction — 1,421 1,421 — 112,681 112,681 CRE — 41,749 41,749 — 3,106,290 3,106,290 Tax-exempt — 6,381 6,381 — 1,017,791 1,017,791 Residential mortgage 2,506 14,185 16,691 47,368 3,101,362 3,148,730 SBL — 4,299 4,299 — 2,386,697 2,386,697 Total $ 4,469 $ 185,973 $ 190,442 $ 52,589 $ 17,105,510 $ 17,158,099 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 The reserve for unfunded lending commitments, included in “Other payables” on our Consolidated Statements of Financial Condition, was $11 million at both September 30, 2017 and 2016 . |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Sep. 30, 2017 | |
Prepaid Expense and Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS The following table details the components of Other assets: September 30, $ in thousands 2017 2016 Investments in company-owned life insurance $ 504,108 $ 417,137 Prepaid expenses 96,059 91,129 Investment in FHLB stock 52,187 38,813 Indemnification asset 26,160 35,325 Investment in FRB stock 24,706 24,706 Prepaid compensation arising from 3Macs acquisition 17,276 24,285 Guaranteed LIHTC Fund financing asset 15,786 20,543 Prepaid compensation associated with DBRSU awards 9,899 15,170 All other 34,244 51,727 Total other assets $ 780,425 $ 718,835 As of September 30, 2017 , the cumulative face value of our company-owned life insurance (“COLI”) policies was $1.87 billion . Our indemnification asset pertains to legal matters for which Regions (as hereinafter defined) has indemnified RJF in connection with our acquisition of Morgan Keegan. The liabilities related to such matters were included in “Other payables” on our Consolidated Statements of Financial Condition. See Note 17 for additional information. As part of our 2016 acquisition of 3Macs, a portion of the amount paid to selling shareholders who became continuing employees as of the closing date was treated as a prepaid compensation asset as the shareholders may be required to repay such amounts if they leave 3Macs during the five year period after the closing date, depending on the circumstances of their departure. This prepaid asset is being amortized as compensation expense over the five -year post-combination period. 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 10 for further information) and we accounted for this sale 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 $16 million and $21 million was included in “Other payables” on our Consolidated Statements of Financial Condition as of September 30, 2017 and 2016 , respectively. See Note 17 for additional information. See Note 20 for further information about prepaid compensation associated with the DBRSU awards that were assumed as part of our 2016 acquisition of Alex. Brown. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Sep. 30, 2017 | |
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 the accounting policies regarding determination of whether we are deemed to be the primary beneficiary of VIE s. VIEs where we are the primary beneficiary Of the VIE s in which we hold an interest, we have determined that certain Private Equity Interests, a LIHTC Fund in which RJ Bank is an investor and an affiliate of RJTCF is the managing member, any LIHTC Funds where RJTCF provides an investor member with a guaranteed return on their investment, certain other LIHTC funds and the Restricted Stock Trust Fund require consolidation in our financial statements, as we are deemed the primary beneficiary of such VIE s. The aggregate assets and liabilities of the VIE s we consolidate are provided in the table below. Aggregate assets and aggregate liabilities may differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE . $ in thousands Aggregate assets Aggregate liabilities September 30, 2017 Private Equity Interests $ 104,414 $ 3,851 LIHTC Fund in which RJ Bank is an investor member 57,719 1,055 Guaranteed LIHTC Fund 51,400 2,872 Other LIHTC Funds 7,418 2,544 Restricted Stock Trust Fund 12,122 12,122 Total $ 233,073 $ 22,444 September 30, 2016 Private Equity Interests $ 140,870 $ 4,888 LIHTC Fund in which RJ Bank is an investor member 55,550 240 Guaranteed LIHTC Fund 63,415 2,556 Restricted Stock Trust Fund 9,949 9,949 Total $ 269,784 $ 17,633 In connection with the Guaranteed LIHTC Fund, RJTCF has provided one investor member with a guaranteed return on their investment in the fund. See Note 9 for information regarding the financing asset associated with this fund and Note 17 for additional information regarding this commitment. The following table presents information about the carrying value of the assets, liabilities and equity of the VIE s 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, $ in thousands 2017 2016 Assets: Cash and cash equivalents $ 2,052 $ 8,302 Assets segregated pursuant to regulations and other segregated assets 4,590 2,833 Other receivables 168 28,463 Intercompany receivables 454 475 Other investments 101,905 103,630 Investments in real estate partnerships held by consolidated variable interest entities 111,743 116,133 Trust fund investment in RJF common stock 12,120 9,948 Other assets 41 — Total assets $ 233,073 $ 269,784 Liabilities and equity: Other payables $ 9,667 $ 3,617 Intercompany payables 16,520 16,416 Total liabilities 26,187 20,033 RJF equity 101,445 117,023 Noncontrolling interests 105,441 132,728 Total equity 206,886 249,751 Total liabilities and equity $ 233,073 $ 269,784 The trust fund investment in RJF common stock in the table above is the Restricted Stock Trust Fund, which is included in “Treasury stock” in our Consolidated Statements of Financial Condition. VIE s where we hold a variable interest but are not the primary beneficiary As discussed in Note 2 , we have concluded that for certain VIE s we are not the primary beneficiary and therefore do not consolidate these VIE s. Such VIE s include certain Private Equity Interests, certain LIHTC funds, NMTC Funds and other limited partnerships. Our risk of loss for these VIE s is limited to our investments in, advances to, and/or receivables due from these VIE s. Aggregate assets, liabilities and risk of loss The aggregate assets, liabilities, and our exposure to loss from those VIE s 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, $ in thousands 2017 2016 Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss LIHTC Funds $ 5,372,367 $ 2,134,600 $ 60,959 $ 4,217,812 $ 1,429,085 $ 83,562 NMTC Funds 30,297 105 9 65,338 68 12 Private Equity Interests 10,485,611 174,354 73,457 14,286,950 132,334 70,336 Other 169,462 88,615 3,163 144,579 83,174 2,240 Total $ 16,057,737 $ 2,397,674 $ 137,588 $ 18,714,679 $ 1,644,661 $ 156,150 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT September 30, $ in thousands 2017 2016 Land $ 29,079 $ 24,150 Software, including development in progress 345,734 271,864 Buildings, leasehold and land improvements 324,452 260,800 Furniture, fixtures and equipment 224,418 200,947 Construction in process 12,056 3,711 Total property and equipment 935,739 761,472 Less: Accumulated depreciation (498,365 ) (440,015 ) Total property and equipment, net $ 437,374 $ 321,457 |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET The following are our goodwill and identifiable intangible asset balances as of the dates indicated: September 30, $ in thousands 2017 2016 Goodwill $ 410,723 $ 408,072 Identifiable intangible assets, net 82,460 94,974 Total goodwill and identifiable intangible assets, net $ 493,183 $ 503,046 Goodwill The following summarizes our goodwill by segment, along with the balance and activity for the years indicated: Segment $ in thousands Private Client Group Capital Markets Total Fiscal Year 2017 Goodwill beginning of year $ 275,521 $ 132,551 $ 408,072 Additions — — — Foreign currency translation 1,192 1,459 2,651 Goodwill end of year $ 276,713 $ 134,010 $ 410,723 Fiscal Year 2016 Goodwill beginning of year $ 186,733 $ 120,902 $ 307,635 Additions 86,351 9,012 95,363 Foreign currency translation 2,437 2,637 5,074 Goodwill end of year $ 275,521 $ 132,551 $ 408,072 During fiscal year 2017, there were no additions to goodwill. The Private Client Group segment goodwill additions in fiscal year 2016 were attributable to our acquisitions of Alex. Brown in the amount of $82 million and 3Macs in the amount of $5 million . The addition to goodwill associated with Alex. Brown is deductible for tax purposes over 15 years. The addition to goodwill attributable to 3Macs is not deductible for tax purposes. The Capital Markets segment goodwill addition in fiscal year 2016 was attributable to our acquisition of Mummert. This goodwill is not deductible for tax purposes. See Note 3 for additional information regarding our acquisitions. As described in Note 2 , we perform goodwill testing on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. During the year ended September 30, 2017 , we changed our annual goodwill impairment test date for all reporting units from December 31 to January 1; however, the results of our test did not change as we continue to evaluate balances as of December 31. We performed our latest annual goodwill impairment testing during the quarter ended March 31, 2017, evaluating balances as of December 31, 2016, and no impairment was identified. In that testing, we performed both a qualitative impairment assessment for certain of our reporting units and a quantitative impairment assessment for our two RJ Ltd. reporting units operating in Canada. We assign goodwill to reporting units. Our reporting units include: a domestic Private Client Group ( RJ&A domestic retail brokerage operations and our subsidiary The Producers Choice LLC (“TPC”)) and a Canadian Private Client Group ( RJ Ltd. Private Client Group), each included in our Private Client Group segment; and RJ&A Fixed Income, U.S. Managed Equity Capital Markets, and RJ Ltd. Capital Markets, each included in our Capital Markets segment. Qualitative Assessments For each reporting unit on which we performed a qualitative assessment, we determined whether it was more likely than not that the carrying value of the reporting unit, including the recorded goodwill, was 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 was required, and we concluded that none of the goodwill allocated to any of those reporting units was impaired. No events have occurred since our assessment 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 and instead performed quantitative assessments of the equity value of each RJ Ltd. reporting unit that had 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 December 31, 2016 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 unit’s 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 unit’s 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: Key assumptions Weight assigned to the outcome of: Segment Reporting unit Goodwill as of December 31, 2016 (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 $ 22,735 14.5 % 1.2x/12.9x 75 % 25 % Capital Markets: RJ Ltd. Capital Markets $ 18,997 14.5 % 1.2x/13.3x 75 % 25 % 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, we concluded that none of the goodwill associated with our two RJ Ltd. reporting units was impaired. No events have occurred since our quantitative assessments during the quarter ended March 31, 2017 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 $ in thousands Private Client Group Capital Markets Asset Management Total Fiscal Year 2017 Net identifiable intangible assets beginning of year $ 52,936 $ 27,937 $ 14,101 $ 94,974 Amortization expense (6,001 ) (4,845 ) (2,004 ) (12,850 ) Foreign currency translation 91 (15 ) 260 336 Net identifiable intangible assets end of year $ 47,026 $ 23,077 $ 12,357 $ 82,460 Fiscal Year 2016 Net identifiable intangible assets beginning of year $ 18,182 $ 32,532 $ 17,137 $ 67,851 Additions 36,624 1,013 — 37,637 Amortization expense (1,870 ) (5,619 ) (2,226 ) (9,715 ) Foreign currency translation — 11 (810 ) (799 ) Net identifiable intangible assets end of year $ 52,936 $ 27,937 $ 14,101 $ 94,974 The identifiable intangible asset additions in fiscal year 2016 were primarily attributable to the acquisition of Alex. Brown and 3Macs and included customer relationships, trade names, seller relationship agreements and non-compete agreements. See Note 3 for additional information regarding our acquisitions. The following summarizes our identifiable intangible assets by type: September 30, 2017 2016 $ in thousands Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 99,749 $ (31,098 ) $ 99,470 $ (22,895 ) Trade name 8,366 (2,076 ) 8,172 (499 ) Developed technology 1,630 (706 ) 12,630 (10,280 ) Intellectual property 542 (131 ) 516 (73 ) Non-compete agreements 3,336 (1,551 ) 3,314 (612 ) Seller relationship agreements 5,300 (901 ) 5,300 (69 ) Total $ 118,923 $ (36,463 ) $ 129,402 $ (34,428 ) The following table sets forth the projected amortization expense by fiscal year associated with our identifiable intangible assets: Fiscal year ended September 30, $ in thousands 2018 $ 11,056 2019 10,591 2020 9,812 2021 9,056 2022 8,436 Thereafter 33,509 $ 82,460 |
BANK DEPOSITS
BANK DEPOSITS | 12 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [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, the calculation of which was based on the actual deposit balances at September 30, 2017 and 2016 , respectively. September 30, 2017 2016 $ in thousands Balance Weighted-average rate Balance Weighted-average rate Savings and money market accounts $ 17,391,091 0.14 % $ 13,935,089 0.05 % Certificates of deposit 314,685 1.60 % 315,236 1.55 % NOW accounts 5,197 0.01 % 4,958 0.01 % Demand deposits (non-interest-bearing) 21,389 — 7,264 — Total bank deposits $ 17,732,362 0.17 % $ 14,262,547 0.08 % Total bank deposits in the table above excludes affiliate deposits of $243 million and $353 million at September 30, 2017 and 2016 , respectively. These affiliate deposits include $192 million and $350 million as of September 30, 2017 and 2016 , respectively, held in a deposit account at RJ Bank on behalf of RJF (see Note 25 for additional information). Savings and money market accounts in the table above consist primarily of deposits that are cash balances swept from the client investment accounts maintained at RJ&A to RJ Bank . These balances are held in Federal Deposit Insurance Corporation (“FDIC”) insured bank accounts through the Raymond James Bank Deposit Program (“RJBDP”). The aggregate amount of time deposit account balances that exceeded the FDIC insurance limit at September 30, 2017 was $23 million . Scheduled maturities of certificates of deposit are as follows: September 30, 2017 2016 $ in thousands Denominations greater than or equal to $100,000 Denominations less than $100,000 Denominations greater than or equal to $100,000 Denominations less than $100,000 Three months or less $ 8,704 $ 4,132 $ 14,252 $ 12,663 Over three through six months 4,692 3,894 14,191 9,750 Over six through twelve months 34,005 11,865 15,452 12,321 Over one through two years 38,713 20,019 32,816 11,060 Over two through three years 48,082 27,847 43,730 22,148 Over three through four years 21,819 12,761 58,425 28,863 Over four through five years 50,805 27,347 26,173 13,392 Total $ 206,820 $ 107,865 $ 205,039 $ 110,197 Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized as follows: Year ended September 30, $ in thousands 2017 2016 2015 Certificates of deposit $ 4,325 $ 5,402 $ 5,839 Money market, savings and NOW accounts 12,859 4,816 2,543 Total interest expense on deposits $ 17,184 $ 10,218 $ 8,382 |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS The following table details the components of other borrowings: September 30, $ in thousands 2017 2016 FHLB advances $ 875,000 $ 575,000 Unsecured lines of credit 350,000 — Secured lines of credit 260,000 — Mortgage notes payable 28,813 33,391 ClariVest revolving credit facility 199 267 Total other borrowings $ 1,514,012 $ 608,658 Borrowings from the FHLB as of September 30, 2017 were comprised of both floating and fixed-rate advances. As of September 30, 2017 the floating-rate advances, which mature in June 2019 and have interest rates which reset quarterly, totaled $850 million . We use interest rate swaps to manage the risk of increases in interest rates associated with these floating-rate advances by converting the balances subject to variable interest rates to a fixed interest rate. Refer to Note 6 for information regarding these interest rate swaps, which are accounted for as hedging instruments. The fixed-rate advance, in the amount of $25 million , matures in October 2020 and bears interest at a fixed rate of 3.4% . All of the advances were secured by a blanket lien granted to the FHLB on our residential mortgage loan portfolio. The weighted average interest rate on these advances as of September 30, 2017 was 1.41% . Borrowings from the FHLB as of September 30, 2016 were comprised of floating-rate advances that have interest rates which reset quarterly, totaling $550 million , and a fixed-rate advance in the amount of $25 million and bears interest at a rate of 3.4% . The weighted average interest rate on these advances as of September 30, 2016 was 1.01% . RJF is a party to a revolving credit facility agreement (the “RJF Credit Facility”) with a maturity date of May 2022 in which the lenders are a number of financial institutions. This committed unsecured borrowing facility provides for maximum borrowings of up to $300 million at variable rates of interest. There were no borrowings outstanding on the RJF Credit Facility as of either September 30, 2017 or 2016 . 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, 2017 , the variable borrowing rate was 1.50% per annum over LIBOR. There is a variable rate commitment fee associated with the RJF Credit Facility, which varies depending upon RJF ’s credit rating. Based upon RJF ’s credit rating as of September 30, 2017 , the variable rate commitment fee which applied to any difference between the daily borrowed amount and the committed amount, was 0.20% per annum. Any borrowings on unsecured lines of credit, with the exception of the RJF Credit Facility, were day-to-day and were generally utilized for cash management purposes. Any borrowings on secured lines of credit were day-to-day and were generally utilized to finance certain fixed income securities. In addition we have other collateralized financings included in “Securities sold under agreements to repurchase” on our Consolidated Statements of Financial Condition. See Note 7 for information regarding our collateralized financing arrangements. 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, 2017 , 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 0.35% to 3.41% . The interest rate on our Canadian facility which was utilized from time-to-time during the fiscal year September 30, 2017 was 1.75% . Mortgage notes payable pertain to mortgage loans on certain of our corporate headquarters offices located in St. Petersburg, Florida. These mortgage loans are secured by land, buildings, and improvements. These mortgage loans bear interest at 5.7% with repayment terms of monthly interest and principal debt service and have a January 2023 maturity. 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 lender’s prime rate. The weighted average interest rate on the ClariVest Facility during the fiscal year ended September 30, 2017 was 4.91% . The ClariVest Facility expires in September 2018 . Our other borrowings as of September 30, 2017 , mature as follows based on their contractual terms: Fiscal year ended September 30, $ in thousands 2018 $ 615,045 2019 855,130 2020 5,430 2021 30,748 2022 6,084 Thereafter 1,575 Total $ 1,514,012 |
SENIOR NOTES PAYABLE
SENIOR NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
SENIOR NOTES PAYABLE | SENIOR NOTES PAYABLE The following summarizes our senior notes payable: September 30, $ in thousands 2017 2016 5.625% senior notes, due 2024 $ 250,000 $ 250,000 3.625% senior notes, due 2026 500,000 500,000 4.95% senior notes, due 2046 800,000 300,000 6.90% senior notes, due 2042 — 350,000 8.60% senior notes, due 2019 — 300,000 1,550,000 1,700,000 Unaccreted premium/(discount) 11,905 (1,601 ) Unamortized debt issuance costs (13,066 ) (17,812 ) Total senior notes payable $ 1,548,839 $ 1,680,587 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. 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. 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 . In May 2017 , we reopened the offering and sold, in a registered underwritten public offering, an additional $500 million in aggregate principal amount of 4.95% senior notes due July 2046 . These additional senior notes were consolidated, formed into a single series, and are fully fungible with the $300 million in aggregate principal amount 4.95% senior notes issued in July 2016 . Interest on these senior notes is payable semi-annually . We may redeem some or all of these senior notes at any time prior to their maturity, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes 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. Redemption at par of certain senior notes On March 15, 2017 (the “March Redemption Date”), we redeemed all of our outstanding 6.90% senior notes due March 2042 , which were originally sold in a registered underwritten public offering in 2012. The aggregate principal amount outstanding of the 6.90% Senior Notes was $350 million . The redemption price on the March Redemption Date was equal to the principal, plus accrued and unpaid interest thereon to the March Redemption Date. Unamortized debt issuance costs as of the March Redemption Date of $8 million were accelerated and were included in “Losses on extinguishment of debt” in our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2017 . On September 25, 2017 (the “September Redemption Date”), we redeemed all of our outstanding 8.60% senior notes due August 2019 , which were originally sold in a registered underwritten public offering in 2009. The aggregate principal amount outstanding of the 8.60% senior notes was $300 million . The redemption price on the September Redemption Date was equal to accrued and unpaid interest as of the September Redemption Date plus the sum of the present value of the remaining scheduled payments, which consist of principal and interest, discounted to the September Redemption Date on a semi-annual basis at a discount rate equal to a designated U.S. Treasury Rate, plus 50 basis points. A make-whole premium related to the redemption of $37 million was included in “Losses on extinguishment of debt” in our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2017 . Our senior notes payable outstanding as of September 30, 2017 , mature at varying dates between 2024 and 2046. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For a discussion of our income tax accounting policies and other income tax-related information see Note 2. Total income tax provision/(benefit) was allocated as follows: Year ended September 30, $ in thousands 2017 2016 2015 Recorded in: Net income including noncontrolling interests $ 289,111 $ 271,293 $ 296,034 Equity, arising from cash flow hedges recorded through OCI 14,239 (7,252 ) (2,850 ) Equity, arising from cumulative currency translation adjustments and net investment hedges recorded through OCI (7,427 ) (3,525 ) 31,078 Equity, arising from available-for-sale securities recorded through OCI 856 (3,295 ) (2,246 ) Equity, arising from compensation expense for tax purposes which was (in excess of)/less than amounts recognized for financial reporting purposes — (35,121 ) 8,115 Total $ 296,779 $ 222,100 $ 330,131 Effective October 1, 2016, we adopted the new accounting guidance related to stock compensation. The amended guidance involves several aspects of the accounting for share-based payment transactions, including the income tax consequences. Under the new guidance, all tax effects related to share-based payments are recorded through tax expense in the periods during which the awards are exercised or vest, as applicable. See Note 2 and Note 20 for additional information on our adoption of this new accounting guidance during the period. Our provision/(benefit) for income taxes consisted of the following: Year ended September 30, $ in thousands 2017 2016 2015 Current: Federal $ 255,555 $ 287,350 $ 266,359 State and local 37,553 32,101 48,130 Foreign 7,620 10,640 5,007 300,728 330,091 319,496 Deferred: Federal (11,316 ) (51,383 ) (20,567 ) State and local (959 ) (6,267 ) (5,127 ) Foreign 658 (1,148 ) 2,232 (11,617 ) (58,798 ) (23,462 ) Total provision for income tax $ 289,111 $ 271,293 $ 296,034 A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: Year ended September 30, 2017 2016 2015 Provision calculated at statutory rate 35.0 % 35.0 % 35.0 % State income tax, net of federal benefit 2.7 % 1.7 % 3.6 % Tax-exempt interest income (1.0 )% (0.9 )% (0.5 )% Excess tax benefits related to share-based compensation (1) (2.5 )% — — (Income)/losses associated with COLI which are not (subject to tax)/tax deductible (1.7 )% (1.1 )% 0.4 % Federal tax credits (1.6 )% (1.0 )% (0.9 )% Other, net 0.3 % 0.2 % (0.5 )% Total provision for income tax 31.2 % 33.9 % 37.1 % (1) Does not include excess state tax benefits related to share-based compensation, which had an impact of reducing our effective tax rate by (0.2)% for 2017. See Note 2 and Note 20 for more information regarding the adoption of new accounting guidance related to stock compensation. U.S. and foreign components of income excluding noncontrolling interests and before provision for income taxes were as follows: Year ended September 30, $ in thousands 2017 2016 2015 U.S. $ 915,711 $ 765,421 $ 782,146 Foreign 9,635 35,222 16,028 Income excluding noncontrolling interests and before provision for income taxes $ 925,346 $ 800,643 $ 798,174 The cumulative effects of temporary differences that give rise to significant portions of the deferred tax asset/(liability) items are as follows: September 30, $ in thousands 2017 2016 Deferred tax assets: Deferred compensation $ 235,171 $ 192,397 Allowances for loan losses and reserves for unfunded commitments 74,909 78,552 Unrealized loss associated with foreign currency translations 1,928 22,184 Unrealized loss associated with available-for-sale securities 3,342 4,314 Accrued expenses 41,545 44,419 Other 13,665 24,897 Total gross deferred tax assets 370,560 366,763 Less: valuation allowance (9 ) (9 ) Total deferred tax assets 370,551 366,754 Deferred tax liabilities: Partnership investments (6,326 ) (8,518 ) Goodwill and other intangibles (38,364 ) (26,384 ) Undistributed earnings of foreign subsidiaries — (9,636 ) Other (12,375 ) (192 ) Total deferred tax liabilities (57,065 ) (44,730 ) Net deferred tax assets $ 313,486 $ 322,024 We had a net deferred tax asset at September 30, 2017 and 2016 . This asset includes net operating losses that will expire between 2018 and 2030 . A valuation allowance for the fiscal year ended September 30, 2017 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 $313 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. As of September 30, 2017 , we consider all undistributed earnings of non-U.S. subsidiaries to be permanently reinvested and, therefore, we have not provided for any U.S. deferred income taxes. As of September 30, 2017 , we had approximately $219 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, 2017 , the current tax receivable, which is included in “Other receivables” in our Consolidated Statements of Financial Condition, was $102 million , and the current tax payable, which is included in “Other payables,” was $23 million . As of September 30, 2016 , the current tax receivable was $48 million and the current tax payable was $29 million . 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. As of September 30, 2017 and 2016 , accrued interest and penalties were approximately $3 million and $4 million , respectively. The aggregate changes in the balances for uncertain tax positions were as follows: Year ended September 30, $ in thousands 2017 2016 2015 Balance for uncertain tax positions at beginning of year $ 22,173 $ 22,454 $ 15,804 Increases for tax positions related to the current year 3,238 6,496 4,954 Increases for tax positions related to prior years (1) 438 1,284 3,466 Decreases for tax positions related to prior years (717 ) (1,592 ) (204 ) Decreases due to lapsed statute of limitations (2,497 ) (1,447 ) (1,566 ) Decreases related to settlements (2,629 ) (5,022 ) — Balance for uncertain tax positions at end of year $ 20,006 $ 22,173 $ 22,454 (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 $15 million , $16 million , and $15 million at September 30, 2017 , 2016 , 2015 , respectively. We anticipate that the uncertain tax position balance will not change significantly over the next 12 months. We file U.S. federal income tax returns as well as returns with various state, local and foreign jurisdictions. With few exceptions, we are generally no longer subject to U.S. federal, state and local, or foreign income tax examination by tax authorities for years prior to fiscal year 2014 for federal tax returns, fiscal year 2013 for state and local tax returns and fiscal year 2013 for foreign tax returns. Various foreign and state audits in process are expected to be completed in fiscal year 2018 . |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments and contingencies Loan and Underwriting Commitments In the normal course of business we enter into commitments for either fixed income or equity underwritings. As of September 30, 2017 , we had two such open underwriting commitments, both of which were subsequently settled in open market transactions and none of which resulted in significant loss. 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, 2017 , we had made commitments through the extension of formal offers totaling approximately $139 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, 2017 , $59 million of the total amount extended consisted of unfunded commitments to prospective financial advisors that had accepted our offers, or recently hired producers. As of September 30, 2017 , we had not settled purchases of $162 million in syndicated loans. These loan purchases are expected to be settled within 90 days . See Note 22 for additional information regarding our commitments to extend credit and other credit-related off-balance sheet financial instruments such as standby letters of credit and loan purchases. Investment Commitments A subsidiary of RJ Bank has committed $80 million as an investor member in a LIHTC fund in which a subsidiary of RJTCF is the managing member (see Note 2 for information regarding the accounting policies governing these investments). As of September 30, 2017 , the RJ Bank subsidiary had invested $61 million of the committed amount. We have unfunded commitments to various private equity partnerships, which aggregate to $36 million as of September 30, 2017 . Of the total, we have unfunded commitments of $18 million to internally-sponsored private equity limited partnerships in which we control the general partner. Acquisition-Related Commitments and Contingencies On April 20, 2017, we announced we had entered into a definitive agreement to acquire the Scout Group. This acquisition closed on November 17, 2017. See Note 3 for more information. As part of the terms governing our fiscal year 2015 acquisition of TPC , 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 over a measurement period of up to three years after the TPC closing date, which was July 31, 2015. During the year ended September 30, 2017 certain earn-out payments were measured and applicable amounts paid to the sellers of TPC . The remaining elements of contingent consideration will be determined in the future based upon the outcome of either specific performance of defined tasks, or the achievement of specified revenue growth hurdles. Our initial estimate of the fair value of the elements of contingent consideration as of the TPC closing date was included in our determination of the goodwill arising from this acquisition. As of September 30, 2017 , we computed an estimate of the fair value of the contingent consideration based upon the latest information available to us, and the excess of this fair value determination over the initial estimate was included in “Other expenses” on our Consolidated Statements of Income and Comprehensive Income. As a part of the terms governing the fiscal year 2016 Mummert acquisition (see Note 3 for additional information regarding this acquisition), on certain dates specified in the Mummert purchase agreement, there are earn-out computations to be performed or contingent consideration provisions that may apply. These elements of contingent consideration will be finally determined in the future based upon the achievement of specified revenue amounts and the continued employment of specified associates. Since the ultimate payment of these elements of contingent consideration are conditioned upon continued employment as of the measurement dates which are three and five years from the Mummert acquisition date of June 1, 2016, these obligations, including any adjustments to the estimated fair value, are being recognized as a component of our compensation expense over such periods. Lease Commitments Long-term lease agreements expire at various times through fiscal year 2031 . Minimum annual rental payments under such agreements for the succeeding five fiscal years are presented below: Fiscal year ended September 30, $ in thousands 2018 $ 96,756 2019 89,711 2020 78,164 2021 61,959 2022 42,846 Thereafter 79,491 Total $ 448,927 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 $115 million , $97 million and $89 million for fiscal years 2017 , 2016 and 2015 , respectively. Other Commitments 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. As of September 30, 2017 , RJTCF had $42 million outstanding against this commitment. RJTCF may borrow from RJF in order to make investments in, or fund loans or advances to, either project partnerships that purchase and develop properties qualifying for tax credits 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. As a part of our fixed income public finance operations, we enter into forward commitments to purchase GNMA or FNMA MBS (see the discussion of these activities within “financial instruments, financial instruments sold but not yet purchased at fair value” in Note 2 ). At September 30, 2017 , we had approximately $793 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 we would otherwise be exposed between the date of the commitment and the date of sale of the MBS , we enter into TBA security contracts with investors for generic MBS at specific rates and prices to be delivered on settlement dates in the future. These TBA securities and related purchase commitment are accounted for at fair value. As of September 30, 2017 , the fair value of the TBA securities and the estimated fair value of the purchase commitments were not significant. Contingencies 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 censures 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 and regulatory matter contingencies” discussion within this footnote for information about related loss contingency reserves. Guarantees RJF guarantees interest rate swap obligations of RJ Cap Services. See Note 6 for additional information regarding interest rate swaps. RJF guarantees the existing mortgage debt of RJ&A of $29 million . See Note 14 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 of London. 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 Lloyd’s of London 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 $3 million as of September 30, 2017 . RJTCF has provided a guaranteed return on investment to a third party investor in the Guaranteed LIHTC Fund 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 the Guaranteed LIHTC Fund fail to deliver a certain amount of tax credits and other tax benefits to this investor over the next five years , RJTCF is obligated to pay the investor an amount that results in the investor achieving a minimum specified return on their investment. A $16 million financing asset is included in “Other assets” (see Note 9 for additional information), and a related $16 million liability is included in “Other payables” on our Consolidated Statements of Financial Condition as of September 30, 2017 related to this obligation. The maximum exposure to loss under this guarantee was $17 million as of September 30, 2017 , 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. With respect to legal and regulatory matters for which management has been able to estimate a range of reasonably possible loss (and excluding amounts subject to the below-described indemnification from Regions), as of September 30, 2017 , we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $65 million in excess of the aggregate reserves for such matters. Refer to Note 2 for a discussion of our criteria for recognizing liabilities for contingencies. Morgan Keegan Litigation Indemnification from Regions Under the agreement with Regions governing our 2012 acquisition of Morgan Keegan, Regions is obligated to indemnify us 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 were received prior to April 2, 2015. The Morgan Keegan matter described below is subject to such indemnification provisions. As of September 30, 2017 , management estimated the range of potential liability of all Morgan Keegan matters subject to indemnification, including the cost of defense, to be from $12 million to $44 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, 2017 , our Consolidated Statements of Financial Condition include an indemnification asset of $26 million which is included in “Other assets” (see Note 9 for additional information), and a liability for potential losses of $26 million which is included within “Other payables,” pertaining to the Morgan Keegan matters subject to indemnification. The amount included within “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 Limited and an affiliate in the Superior Court of New Jersey, Law Division, in 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 the stock price of Fairfax, so that others could profit from short positions. Plaintiffs alleged that the defendants’ actions disparaged them and harmed their business relationships. Plaintiffs alleged various categories of damages, including lost insurance business, losses on stock and bond offerings, reputational loss, increased audit fees and directors’ and officers’ insurance premiums, and lost acquisitions. They requested actual and punitive damages and treble damages under their RICO claims. On May 11, 2012, the trial court dismissed the plaintiffs’ RICO claims. 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, and the plaintiffs appealed. On April 27, 2017, the Superior Court of New Jersey, Appellate Division, affirmed the trial court's dismissal of certain claims against Morgan Keegan, including the RICO allegations, while remanding to the trial court the claims of disparagement, tortious interference with prospective business relations, and civil conspiracy, and limiting the actual damages to certain lost insurance business. Plaintiffs petitioned the Supreme Court of New Jersey for review of the Appellate Division’s opinion, but on October 17, 2017, the Supreme Court of New Jersey denied the petition. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Other comprehensive income/(loss) The activity in other comprehensive income/(loss), net of the respective tax effect, was as follows: Year ended September 30, $ in thousands 2017 2016 2015 Unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses $ 1,684 $ (5,576 ) $ (3,325 ) Unrealized gain/(loss) on currency translations, net of the impact of net investment hedges 15,618 2,179 (30,640 ) Unrealized gain/(loss) on cash flow hedges 23,232 (11,833 ) (4,650 ) Net other comprehensive income/(loss) $ 40,534 $ (15,230 ) $ (38,615 ) Accumulated other comprehensive income/(loss) All of the components of other comprehensive income/(loss) described below, net of tax, are attributable to RJF . The following table presents the changes, and the related tax effects, of each component of accumulated other comprehensive income/(loss): $ in thousands Net investment hedges Currency translations Sub-total: net investment hedges and currency translations Available-for-sale securities Cash flow hedges Total Year ended September 30, 2017 Accumulated other comprehensive income/(loss) as of the beginning of the year $ 86,482 $ (121,576 ) $ (35,094 ) $ (4,156 ) $ (16,483 ) $ (55,733 ) Other comprehensive income/(loss) before reclassifications and taxes (41,997 ) 43,541 1,544 443 31,843 33,830 Amounts reclassified from accumulated other comprehensive income/(loss), before tax — 6,647 6,647 2,097 5,628 14,372 Pre-tax net other comprehensive income/(loss) (41,997 ) 50,188 8,191 2,540 37,471 48,202 Income tax effect 15,716 (8,289 ) 7,427 (856 ) (14,239 ) (7,668 ) Net other comprehensive income/(loss) for the year, net of tax (26,281 ) 41,899 15,618 1,684 23,232 40,534 Accumulated other comprehensive income/(loss) as of the end of the year $ 60,201 $ (79,677 ) $ (19,476 ) $ (2,472 ) $ 6,749 $ (15,199 ) 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 income/(loss) 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 net other comprehensive income/(loss) (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 income/(loss) 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 the end of the year $ 86,482 $ (121,576 ) $ (35,094 ) $ (4,156 ) $ (16,483 ) $ (55,733 ) Our net investment hedges and cash flow hedges relate to our derivatives associated with RJ Bank’s business operations (see Note 6 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, for the years ended September 30, 2017 and 2016 : Accumulated other comprehensive income/(loss) components $ in thousands Increase/(decrease) in amounts reclassified from accumulated other comprehensive income/(loss) Affected line items in income statement Year ended September 30, 2017 Available-for-sale securities: Auction rate securities $ 1,458 Other revenue RJ Bank available-for-sale securities 639 Other revenue RJ Bank cash flow hedges 5,628 Interest expense Currency translations 6,647 Other expense 14,372 Total before tax Income tax effect (5,460 ) Provision for income taxes Total reclassifications for the year $ 8,912 Net of tax Year ended September 30, 2016 Available-for-sale securities: Auction rate securities $ 87 Other revenue RJ Bank available-for-sale securities 273 Other revenue RJ Bank cash flow hedges 6,450 Interest expense 6,810 Total before tax Income tax effect (2,590 ) Provision for income taxes Total reclassifications for the year $ 4,220 Net of tax See Note 6 for additional information regarding the RJ Bank cash flow hedges, and Note 4 for additional fair value information regarding these derivatives. During the year ended September 30, 2017 , we sold our interests in a number of Latin American joint ventures which had operations in Uruguay and Argentina. As a component of our computation of the gain or loss resulting from such sales, we recognized the sold entities’ cumulative currency translation balances which, prior to such reclassification, had been a component of the accumulated other comprehensive loss. |
INTEREST INCOME AND INTEREST EX
INTEREST INCOME AND INTEREST EXPENSE | 12 Months Ended |
Sep. 30, 2017 | |
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, $ in thousands 2017 2016 2015 Interest income: Margin balances $ 85,699 $ 68,712 $ 67,573 Assets segregated pursuant to regulations and other segregated assets 37,270 22,287 13,792 Bank loans, net of unearned income 572,171 487,366 405,578 Available-for-sale securities 27,946 7,596 5,100 Trading instruments 21,068 19,362 19,450 Securities loaned 14,049 8,777 12,036 Loans to financial advisors 13,333 8,207 7,056 Corporate cash and all other 30,590 18,090 12,697 Total interest income $ 802,126 $ 640,397 $ 543,282 Interest expense: Brokerage client liabilities $ 4,884 $ 2,084 $ 940 Retail bank deposits 17,184 10,218 8,382 Trading instruments sold but not yet purchased 6,138 5,035 4,503 Securities borrowed 6,690 3,174 5,237 Borrowed funds 16,559 12,957 6,079 Senior notes 94,665 78,533 76,088 Other 7,658 4,055 4,845 Total interest expense 153,778 116,056 106,074 Net interest income 648,348 524,341 437,208 Bank loan loss provision (12,987 ) (28,167 ) (23,570 ) Net interest income after bank loan loss provision $ 635,361 $ 496,174 $ 413,638 Interest expense related to retail bank deposits in the above table for the years ended September 30, 2017 and 2016 is presented net of interest expense associated with affiliate deposits, which have been eliminated in consolidation. The impact of such expense in the year ended September 30, 2015 was not significant. |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
SHARE-BASED AND OTHER COMPENSATION | 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, 2017 and 2016 was approximately 4,690,000 and 4,873,000 , respectively. The market value of our common stock held by the ESOP at September 30, 2017 was approximately $396 million , of which approximately $4 million was 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 ( COLI - see Note 9 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. 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 . COLI 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 and are included in “Other investments” in our Consolidated Statements of Financial Condition (see Note 4 for the fair value of these investments as of September 30, 2017 , and 2016 ). Compensation expense associated with all of the qualified and non-qualified plans described above totaled $131 million , $117 million and $117 million for the fiscal years ended September 30, 2017 , 2016 and 2015 , 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 Amended and Restated 2012 Stock Incentive Plan (the “2012 Plan”) authorizes us to grant 40,244,000 new shares, including the shares available for grant under six predecessor plans. We generally issue new shares under the 2012 Plan, however we are also permitted to reissue our treasury shares. Share-based awards granted to our independent contractor financial advisors are measured at fair value on a quarterly basis until vesting, with changes in the fair value included in compensation expense. 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 were not material as of September 30, 2017 . Stock option awards Options may be granted to key 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 benefit related to our stock options awards granted to employees and independent contractor financial advisors is presented below: Year ended September 30, $ in thousands 2017 2016 2015 Total share-based expense $ 13,597 $ 11,648 $ 10,196 Income tax benefit related to share-based expense $ 1,783 $ 1,181 $ 821 For the year ended September 30, 2017 , we realized $3 million of excess tax benefits related to our stock option awards which favorably impacted income tax expense in our Consolidated Statements of Income and Comprehensive Income as a result of our adoption of stock compensation simplification guidance (see Note 2 and Note 16 for additional information on our adoption of this new accounting guidance during the period). 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 employee 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, 2017 , 2016 and 2015 : Year ended September 30, 2017 2016 2015 Dividend yield 1.03 % 1.41 % 1.30 % Expected volatility 30.91 % 28.85 % 29.55 % Risk-free interest rate 1.81 % 1.65 % 1.66 % Expected lives (in years) 5.36 5.37 5.48 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 recent and historical volatility of RJF stock. 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, 2017 is presented below: Options for shares (in thousands) Weighted- average exercise price (per share) Weighted- average remaining contractual term (in years) Aggregate intrinsic value ($ in thousands) Outstanding at October 1, 2016 3,710 $ 44.88 Granted 224 $ 72.09 Exercised (1,051 ) $ 32.22 Forfeited (47 ) $ 51.62 Outstanding at September 30, 2017 2,836 $ 51.63 3.58 $ 92,762 Exercisable at September 30, 2017 451 $ 41.62 2.37 $ 19,246 The following stock option activity occurred under the 2012 Plan for grants to employees: Year ended September 30, $ in thousands, except per option amounts 2017 2016 2015 Weighted-average grant date fair value per option $ 19.96 $ 13.96 $ 14.36 Total intrinsic value of stock options exercised $ 42,178 $ 16,273 $ 29,574 Total grant date fair value of stock options vested $ 10,768 $ 7,690 $ 10,483 Pre-tax expense not yet recognized for stock option awards granted to employees and independent contractor financial advisors, net of estimated forfeitures, and the remaining period over which the expense will be recognized as of September 30, 2017 , are presented below: Pre-tax expense not yet recognized (in thousands) Remaining weighted-average amortization period (in years) Employees $ 14,655 2.5 Independent contractor financial advisors $ 2,904 3.0 Cash received from stock option exercises during the fiscal year ended September 30, 2017 was $31 million . Restricted stock and restricted stock unit 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, which we funded to enable the trust fund to acquire our common stock in the open market to be used to settle RSUs granted as a retention vehicle for certain employees of the Canadian subsidiary (see Note 10 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 . 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, RSUs are issued annually to such members of our Board of Directors, in lieu of stock option awards. The RSUs 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 equity award activity which includes restricted stock and RSUs for grants to employees and members of our Board of Directors occurred during the fiscal year ended September 30, 2017 : Shares/Units (in thousands) Weighted- average grant date fair value (per share) Non-vested at October 1, 2016 4,807 $ 47.71 Granted 1,637 $ 72.39 Vested (1,587 ) $ 38.68 Forfeited (113 ) $ 60.11 Non-vested at September 30, 2017 4,744 $ 58.94 Expense and income tax benefits related to our restricted equity awards granted to our employees and members of our Board of Directors are presented below: Year ended September 30, $ in thousands 2017 2016 2015 Total share-based expense $ 78,624 $ 62,674 $ 57,716 Income tax benefits related to share-based expense $ 27,658 $ 21,979 $ 20,516 Total share-based expense for the year ended September 30, 2017 includes $5 million which is included as a component of “Acquisition-related expenses” on our Consolidated Statements of Income and Comprehensive Income. See Note 3 for additional information regarding such expense. For the year ended September 30, 2017 , we realized $22 million of excess tax benefits related to our restricted equity awards which favorably impacted income tax expense in our Consolidated Statements of Income and Comprehensive Income as a result of our adoption of stock compensation simplification guidance (see Note 2 for additional information on our adoption of this new accounting guidance). As of September 30, 2017 , there was $125 million of total pre-tax compensation cost not yet recognized, net of estimated forfeitures, related to restricted equity awards granted to employees and members of our Board of Directors. These costs are expected to be recognized over a weighted-average period of approximately 3.1 years. The total fair value of shares and unit awards vested under this plan during the year ended September 30, 2017 was $59 million . There are no outstanding RSUs related to our independent contractor financial advisors as of September 30, 2017 . Restricted stock awards associated with Alex. Brown As part of our acquisition of Alex. Brown, we 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 DBRSU s are accounted for as a derivative. See Note 6 for additional information regarding these derivatives. The following table details the DBRSU activity for the year ended September 30, 2017 : Units (in thousands) Non-vested DBRSUs at October 1, 2016 1,358 DB rights offering 163 Forfeited (28 ) Non-vested DBRSUs at September 30, 2017 1,493 The per unit fair value of the DBRSU s at the AB Closing Date was $14.90 , and the DBRSU s per unit fair value as of September 30, 2017 was $17.28 . As of September 30, 2017 , there was a $10 million prepaid compensation asset included in “Other assets” in our Consolidated Statements of Financial Condition related to these DBRSU s (see Note 9 ). This asset is expected to be amortized over a weighted-average period of approximately two years . As of September 30, 2017 , there was a $26 million derivative liability included in “Derivative liabilities” in our Consolidated Statements of Financial Condition based on the September 30, 2017 per share price of DB shares of $17.28 . The net impact of the DBRSU s in our Consolidated Statements of Income and Comprehensive Income, including the related income tax effects, is presented below: Year ended September 30, $ in thousands 2017 2016 Amortization of DBRSU prepaid compensation asset $ 5,270 $ 355 Increase/(decrease) in fair value of derivative liability 8,031 (2,457 ) Net expense/(gain) before tax $ 13,301 $ (2,102 ) Income tax expense $ 4,963 $ 799 Included in the table above is the impact of a DB right offering during the year ended September 30, 2017 , which increased the fair value of the derivative liability due to the DBRSU plan terms and conditions, and was reported in “Acquisition-related expenses” on the Consolidated Statements of Income and Comprehensive Income. Also includes the impact of DBRSUs forfeited during the year ended September 30, 2017 . We hold shares of DB as of September 30, 2017 as an economic hedge against this obligation. Such shares are included in “Other investments” on our Consolidated Statements of Financial Condition. The gains/losses on this hedge are included as a component of “Compensation, commissions and benefits expense” or “Acquisition-related expenses” as applicable, and offsets a portion of the gain/losses on the DBRSU s incurred during the periods discussed 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 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 343,000 , 557,000 and 430,000 shares to employees during the years ended September 30, 2017 , 2016 and 2015 , respectively. The compensation cost is calculated as the value of the 15% discount from market value and was $4 million for each of the fiscal years ended September 30, 2017 , 2016 and 2015 . Non-employee other compensation We offer non-qualified deferred compensation plans that provide benefits to our independent contractor financial advisors who meet certain production requirements. COLI 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 also eligible to participate in our VDCP . Eligible participants may elect to defer a percentage or specific dollar amount of their compensation into the VDCP . COLI is the primary source of funding for this plan. |
REGULATORY AND CAPITAL REQUIREM
REGULATORY AND CAPITAL REQUIREMENTS | 12 Months Ended |
Sep. 30, 2017 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS RJF , as a bank holding company and financial holding company, RJ Bank , and our broker-dealer subsidiaries are subject to capital requirements by various regulatory authorities. Capital levels of each entity are monitored 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. As a bank holding company, RJF is subject to the risk-based capital requirements of the Federal Reserve Board. These risk-based capital requirements are expressed as capital ratios that compare measures of regulatory capital to risk-weighted assets, which involve quantitative measures of our assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting guidelines. 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. In July 2013, the OCC , the Fed and the FDIC released final U.S. rules implementing the Basel III capital framework developed by the Basel Committee on Banking Supervision and certain Dodd-Frank Act and other capital provisions and updated the prompt corrective action framework to reflect the new regulatory capital minimums (the “U.S. Basel III Rules”). RJF and RJ Bank report regulatory capital under the Basel III 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. Failure to maintain the capital conservation buffer could limit our ability to take certain capital actions, including dividends and common equity repurchases, and to make discretionary bonus payments. As of September 30, 2017 , both RJF ’s and RJ Bank ’s capital levels exceeded the fully-phased in capital conservation buffer requirement, and are each categorized as “well capitalized.” To meet requirements for capital adequacy purposes or to be categorized as “well capitalized,” RJF must maintain minimum CET1 , Tier 1 capital, Total capital, 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 $ in thousands Amount Ratio Amount Ratio Amount Ratio RJF as of September 30, 2017: CET1 $ 5,081,335 23.0 % $ 994,950 4.5 % $ 1,437,150 6.5 % Tier 1 capital $ 5,081,335 23.0 % $ 1,326,600 6.0 % $ 1,768,800 8.0 % Total capital $ 5,293,331 23.9 % $ 1,768,800 8.0 % $ 2,211,000 10.0 % Tier 1 leverage $ 5,081,335 15.0 % $ 1,359,168 4.0 % $ 1,698,960 5.0 % RJF as of September 30, 2016: CET1 $ 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 % The increase in RJF ’s Total capital and Tier 1 capital ratios at September 30, 2017 compared to September 30, 2016 was primarily the result of positive earnings during the year ended September 30, 2017 , partially offset by the growth of RJ Bank ’s assets, primarily bank loans. To meet the requirements for capital adequacy or to be categorized as “well capitalized,” RJ Bank must maintain CET1 , Tier 1 capital, Total capital, 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 $ in thousands Amount Ratio Amount Ratio Amount Ratio RJ Bank as of September 30, 2017: CET1 $ 1,821,306 12.5 % $ 654,901 4.5 % $ 945,968 6.5 % Tier 1 capital $ 1,821,306 12.5 % $ 873,201 6.0 % $ 1,164,268 8.0 % Total capital $ 2,003,461 13.8 % $ 1,164,268 8.0 % $ 1,455,335 10.0 % Tier 1 leverage $ 1,821,306 8.9 % $ 816,304 4.0 % $ 1,020,379 5.0 % RJ Bank as of September 30, 2016: CET1 $ 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 % The decrease in RJ Bank ’s Total and Tier 1 capital ratios at September 30, 2017 compared to September 30, 2016 was primarily due to growth in assets, primarily bank 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 of 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 regulatory capital 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, 2017 ) 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 following table presents the net capital position of RJ&A : September 30, $ in thousands 2017 2016 Raymond James & Associates, Inc.: (Alternative Method elected) Net capital as a percent of aggregate debit items 21.37 % 19.61 % Net capital $ 589,420 $ 512,594 Less: required net capital (55,164 ) (52,287 ) Excess net capital $ 534,256 $ 460,307 The following table presents the net capital position of RJFS : September 30, $ in thousands 2017 2016 Raymond James Financial Services, Inc.: (Alternative Method elected) Net capital $ 34,488 $ 27,013 Less: required net capital (250 ) (250 ) Excess net capital $ 34,238 $ 26,763 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. was not in Early Warning Level 1 or Level 2 at either September 30, 2017 or 2016 . The following table presents the risk adjusted capital of RJ Ltd. (in Canadian dollars): September 30, $ in thousands 2017 2016 Raymond James Ltd.: Risk adjusted capital before minimum $ 108,985 $ 77,110 Less: required minimum capital (250 ) (250 ) Risk adjusted capital $ 108,735 $ 76,860 Raymond James Trust, N.A., (“RJ Trust”) is regulated by the OCC and is required to maintain sufficient capital. As of September 30, 2017 and 2016 , RJ Trust met the requirements. As of September 30, 2017 , all of our other active regulated domestic and international subsidiaries were in compliance with and met all applicable 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 and regulatory requirements or restrictions, and the availability of funds from our subsidiaries, including our broker-dealer and bank subsidiaries, which may also 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 and restrictions by bank regulators on dividends to the parent from RJ Bank . |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Sep. 30, 2017 | |
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. 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 financings 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. Commitments to extend credit and other credit-related financial instruments 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 underwriting 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 our exposure is limited to the replacement value of those commitments. The following table presents RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding: September 30, $ in thousands 2017 2016 Standby letters of credit $ 39,670 $ 29,686 Open-end consumer lines of credit (primarily SBL) $ 5,323,003 $ 3,616,933 Commercial lines of credit $ 1,673,272 $ 1,430,630 Unfunded loan commitments $ 386,950 $ 354,556 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, 2017 , $40 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, we use 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 our lending commitments expire without being funded in whole or part, the contract amounts are not estimates of our actual future credit exposure or future liquidity requirements. We maintain a reserve to provide for potential losses related to the unfunded lending commitments. See Note 8 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. We use the same credit approval and monitoring process in extending loan commitments and other credit-related off-balance sheet instruments as we do in making loans. Securities loaned and Securities borrowed We 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. Where permitted, 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. We measure the market value of the securities borrowed and loaned against the amount of cash posted or received on a daily basis. Additional cash is obtained as necessary to ensure such transactions are adequately collateralized. If another party to the transaction fails to perform as agreed we may incur a loss if the market value of the security is different from the contract amount of the transaction. For example, 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. See Note 7 for more information on our securities borrowed and securities loaned. Financial instruments sold, but not yet purchased We have sold securities that we do not currently own and will, therefore, be obligated to borrow, purchase or enter into a reverse repurchase agreement for such securities at a future date. These securities are recorded at fair value and are included in “Trading instruments sold, but not yet purchased” in our Consolidated Statements of Financial Condition (see Notes 2 and 4 for further information). In certain cases, we utilize short positions to economically hedge long inventory positions. We may be subject to loss if the market value of a short position increases by more than the market value of the hedged long position or if the short position is not covered by a long hedged position. We also enter into security transactions on behalf of our clients and other financial institutions 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 could 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. As a part of our fixed income public finance operations, we enter into forward commitments to purchase GNMA or FNMA MBS . See Note 2 and Note 17 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 differs significantly from the term and notional amount of the TBA security contracts we enter into. Forward foreign exchange contracts 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, 2017 , forward contracts outstanding to buy and sell U.S. dollars totaled CDN $3 million and CDN $5 million , respectively. RJ Bank is also subject to foreign exchange risk related to its net investment in a Canadian subsidiary. See Note 6 for information regarding how RJ Bank utilizes derivatives to mitigate a significant portion of this risk. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2017 | |
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, $ in thousands, except per share amounts 2017 2016 2015 Income for basic earnings per common share: Net income attributable to RJF $ 636,235 $ 529,350 $ 502,140 Less allocation of earnings and dividends to participating securities (1,376 ) (1,256 ) (1,610 ) Net income attributable to RJF common shareholders $ 634,859 $ 528,094 $ 500,530 Income for diluted earnings per common share: Net income attributable to RJF $ 636,235 $ 529,350 $ 502,140 Less allocation of earnings and dividends to participating securities (1,350 ) (1,236 ) (1,580 ) Net income attributable to RJF common shareholders $ 634,885 $ 528,114 $ 500,560 Common shares: Average common shares in basic computation 143,275 141,773 142,548 Dilutive effect of outstanding stock options and certain restricted stock units 3,372 2,740 3,391 Average common shares used in diluted computation 146,647 144,513 145,939 Earnings per common share: Basic $ 4.43 $ 3.72 $ 3.51 Diluted $ 4.33 $ 3.65 $ 3.43 Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive 1,657 3,255 2,849 The allocation of earnings and dividends to participating securities in the above table 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 317 thousand , 346 thousand and 464 thousand for the years ended September 30, 2017 , 2016 and 2015 , respectively. Dividends paid to participating securities were insignificant for the years ended September 30, 2017 , 2016 , and 2015 . 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, 2017 2016 2015 Dividends per common share - declared $ 0.88 $ 0.80 $ 0.72 Dividends per common share - paid $ 0.86 $ 0.78 $ 0.70 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2017 | |
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 “Other.” 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 & acquisition services, public finance activities, and the operations of RJTCF . The Asset Management segment includes the operations of Eagle , the Eagle Family of Funds, the asset management services division of RJ&A , trust services of RJ Trust, and other fee-based asset management programs. RJ Bank provides corporate loans (C&I, CRE and CRE construction), SBL, tax-exempt 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 the results of our 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, losses on extinguishment of debt and the acquisition and integration costs associated with certain acquisitions (see Note 3 for additional information). The following table presents information concerning operations in these segments of business: Year ended September 30, $ in thousands 2017 2016 2015 Revenues: Private Client Group $ 4,437,588 $ 3,626,718 $ 3,519,558 Capital Markets 1,034,235 1,017,151 976,580 Asset Management 487,735 404,421 392,378 RJ Bank 627,845 517,243 425,988 Other 65,498 46,291 66,967 Intersegment eliminations (128,026 ) (90,704 ) (71,791 ) Total revenues $ 6,524,875 $ 5,521,120 $ 5,309,680 Income/(loss) excluding noncontrolling interests and before provision for income taxes: Private Client Group $ 372,950 $ 340,564 $ 342,243 Capital Markets 141,236 139,173 107,009 Asset Management 171,736 132,158 135,050 RJ Bank 409,303 337,296 278,721 Other (169,879 ) (148,548 ) (64,849 ) Pre-tax income excluding noncontrolling interests 925,346 800,643 798,174 Net income attributable to noncontrolling interests 2,632 11,301 16,438 Income including noncontrolling interests and before provision for income taxes $ 927,978 $ 811,944 $ 814,612 No individual client accounted for more than ten percent of total revenues in any of the years presented. Year ended September 30, $ in thousands 2017 2016 2015 Net interest income/(expense): Private Client Group $ 136,756 $ 97,042 $ 88,842 Capital Markets 6,543 9,432 9,589 Asset Management 623 183 127 RJ Bank 574,796 478,690 403,578 Other (70,370 ) (61,006 ) (64,928 ) Net interest income $ 648,348 $ 524,341 $ 437,208 The following table presents our total assets on a segment basis: September 30, $ in thousands 2017 2016 Total assets: Private Client Group $ 9,967,320 $ 10,317,681 Capital Markets 2,396,033 2,957,319 Asset Management 151,111 133,190 RJ Bank 20,611,898 16,613,391 Other 1,757,094 1,465,395 Total $ 34,883,456 $ 31,486,976 Total assets in the PCG segment included $277 million and $276 million of goodwill at September 30, 2017 and 2016 , respectively. Total assets in the Capital Markets segment included $134 million and $133 million of goodwill at September 30, 2017 and 2016 , respectively. We have operations in the U.S. , Canada and Europe. Substantially all long-lived assets are located in the U.S. 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, $ in thousands 2017 2016 2015 Revenues: United States $ 6,057,971 $ 5,119,536 $ 4,912,820 Canada 354,685 278,652 279,200 Europe 107,831 85,718 85,289 Other 4,388 37,214 32,371 Total $ 6,524,875 $ 5,521,120 $ 5,309,680 Pre-tax income/(loss) excluding noncontrolling interests: United States $ 919,324 $ 778,351 $ 784,517 Canada 14,138 20,243 17,770 Europe (3,577 ) (3,791 ) (6,852 ) Other (4,539 ) 5,840 2,739 Total $ 925,346 $ 800,643 $ 798,174 Our total assets, classified by major geographic area in which they are held, are presented below: September 30, $ in thousands 2017 2016 Total assets: United States $ 32,200,852 $ 29,112,182 Canada 2,592,480 2,275,056 Europe 81,090 61,067 Other 9,034 38,671 Total $ 34,883,456 $ 31,486,976 Total assets in the United States included $356 million of goodwill at September 30, 2017 and 2016 , respectively. Total assets in Canada included $45 million and $43 million of goodwill at September 30, 2017 and 2016 , respectively. Total assets in Europe included $10 million and $9 million of goodwill at September 30, 2017 and 2016 , respectively. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 , each of these brokerage subsidiaries far exceeded their minimum net capital requirements (see Note 21 for further information). Subsidiary net assets of approximately $2.33 billion as of September 30, 2017 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 subsidiaries other than its broker-dealer subsidiaries and RJ Bank is not limited by regulatory or other restrictions; however, 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. Cash and cash equivalents of $1.29 billion and $810 million as of September 30, 2017 and 2016 , respectively, were available to the Parent without restriction and were held directly by RJF in depository accounts at third party financial institutions, held in depository accounts at RJ Bank , or were otherwise invested by one of our subsidiaries on behalf of RJF . The amount held in depository accounts at RJ Bank was $192 million as of September 30, 2017 , of which $152 million was available on demand and without restriction. As of September 30, 2016 , $350 million was held in depository accounts at RJ Bank , all of which was available on demand and without restriction. See Notes 14 , 15 , 17 and 21 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, $ in thousands 2017 2016 Assets: Cash and cash equivalents $ 528,397 $ 371,978 Assets segregated pursuant to regulations 40,145 — Intercompany receivables from subsidiaries: Bank subsidiary 319 — Non-bank subsidiaries (1) 1,166,765 1,228,046 Investments in consolidated subsidiaries: Bank subsidiary 1,823,342 1,658,663 Non-bank subsidiaries 3,448,191 3,121,410 Property and equipment, net 14,457 14,891 Goodwill and identifiable intangible assets, net 31,954 31,954 Other assets 624,452 611,667 Total assets $ 7,678,022 $ 7,038,609 Liabilities and equity: Other payables $ 80,576 $ 81,340 Intercompany payables to subsidiaries: Bank subsidiary — 230 Non-bank subsidiaries 52,699 13,892 Accrued compensation and benefits 414,195 346,015 Senior notes payable 1,548,839 1,680,587 Total liabilities 2,096,309 2,122,064 Equity 5,581,713 4,916,545 Total liabilities and equity $ 7,678,022 $ 7,038,609 (1) Of the total receivable from non-bank subsidiaries, $783 million and $457 million at September 30, 2017 and 2016 , respectively, was 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, $ in thousands 2017 2016 2015 Revenues: Dividends from non-bank subsidiaries $ 183,347 $ 248,020 $ 230,853 Dividends from bank subsidiary 125,000 75,000 — Interest from subsidiaries 16,404 8,999 6,886 Interest 1,838 807 843 Other 25,323 4,654 3,823 Total revenues 351,912 337,480 242,405 Interest expense (94,921 ) (78,089 ) (76,233 ) Net revenues 256,991 259,391 166,172 Non-interest expenses: Compensation and benefits 61,765 54,664 46,758 Communications and information processing 8,741 6,330 5,999 Occupancy and equipment costs 677 636 800 Business development 18,773 18,364 17,581 Losses on extinguishment of debt 45,746 — — Other 14,707 9,792 10,365 Intercompany allocations and charges (30,643 ) (40,424 ) (46,898 ) Total non-interest expenses 119,766 49,362 34,605 Income before income tax benefit and equity in undistributed net income of subsidiaries 137,225 210,029 131,567 Income tax benefit (85,529 ) (64,658 ) (42,688 ) Income before equity in undistributed net income of subsidiaries 222,754 274,687 174,255 Equity in undistributed net income of subsidiaries 413,481 254,663 327,885 Net income $ 636,235 $ 529,350 $ 502,140 The following table presents the Parent’s statements of cash flows: Year ended September 30, $ in thousands 2017 2016 2015 Cash flows from operating activities: Net income $ 636,235 $ 529,350 $ 502,140 Adjustments to reconcile net income to net cash provided by operating activities: Gain on investments (14,588 ) (11,538 ) (5,586 ) (Gain)/loss on company-owned life insurance (47,920 ) (25,642 ) 8,960 Equity in undistributed net income of subsidiaries (413,481 ) (254,663 ) (327,885 ) Loss on extinguishment of senior notes payable 45,746 — — Other 97,616 73,798 60,634 Net change in: Assets segregated pursuant to regulations (40,145 ) — — Intercompany receivables 178,631 19,641 (102,866 ) Other 80,561 97,067 51,442 Intercompany payables 38,577 (115,657 ) 20,338 Other payables (764 ) 2,396 (49 ) Accrued compensation and benefits 68,180 58,520 2,911 Net cash provided by operating activities 628,648 373,272 210,039 Cash flows from investing activities: (Investments in)/distributions from subsidiaries, net (36,520 ) (637,689 ) (9,493 ) Advances to subsidiaries, net (117,670 ) (394,383 ) (40,120 ) Proceeds from sales/(purchases) of investments, net 4,836 24,609 (4,601 ) Purchase of investments in company-owned life insurance, net (40,661 ) (49,488 ) (44,917 ) Net cash used in investing activities (190,015 ) (1,056,951 ) (99,131 ) Cash flows from financing activities: Proceeds from senior note issuances, net of debt issuance costs paid 508,473 792,221 — Extinguishment of senior notes payable (650,000 ) (250,000 ) — Premium paid on extinguishment of senior notes payable (36,892 ) — — Exercise of stock options and employee stock purchases 57,462 43,331 47,964 Purchase of treasury stock (34,055 ) (162,502 ) (88,542 ) Dividends on common stock (127,202 ) (113,435 ) (103,143 ) Net cash provided by/(used in) financing activities (282,214 ) 309,615 (143,721 ) Net increase/(decrease) in cash and cash equivalents 156,419 (374,064 ) (32,813 ) Cash and cash equivalents at beginning of year 371,978 746,042 778,855 Cash and cash equivalents at end of year $ 528,397 $ 371,978 $ 746,042 Supplemental disclosures of cash flow information: Cash paid for interest $ 98,554 $ 74,568 $ 76,297 Cash paid for income taxes, net $ 92,568 $ 27,397 $ 32,383 Supplemental disclosures of noncash activity: Investments in subsidiaries, net $ 24,352 $ 781 $ 507 Losses on extinguishment of debt $ 8,854 $ — $ — |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
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 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 for the reporting period. Actual results could differ from those estimates and could have a material impact on the consolidated financial statements. |
Recent accounting developments | Adoption of new accounting guidance We adopted accounting guidance related to the consolidation model as of October 1, 2016. As a result of this adoption we deconsolidated a number of low-income housing tax credit (“LIHTC”) fund VIEs that had previously been consolidated. We applied the new consolidation guidance on the full retrospective basis, meaning that we have reflected the adjustments arising from this adoption as of the beginning of our earliest comparative period presented. In addition, effective October 1, 2016 we also adopted amended guidance related to share-based compensation, which was applied on a prospective basis. The amended guidance involves several aspects of the accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. See Note 2 for additional information. Recent Accounting Developments Adoption of new accounting guidance Consolidation - In February 2015, the FASB issued amended guidance to the consolidation model (ASU 2015-02), with additional amendments issued in October 2016 (ASU 2016-17). The impact of these amendments on the consolidation model were to: • Eliminate the deferral of the application of the new consolidation model, which had resulted in the application of prior accounting guidance to consolidation determinations of certain investment funds. • Make certain changes to the variable interest consolidation model. • Make certain changes to the voting interest consolidation model. As a result of our October 1, 2016 adoption of this guidance, we deconsolidated a number of tax credit fund VIEs that had been previously consolidated. We determined that under the new guidance, we are no longer deemed to be the primary beneficiary of these VIEs. We applied the new consolidation guidance on the full retrospective basis, meaning that we have reflected the adjustments arising from this adoption as of the beginning of our earliest comparative period presented. Accordingly, we deconsolidated $107 million in assets, $20 million in liabilities, $89 million in noncontrolling equity interests, and increased retained earnings by $2 million , each computed as of September 30, 2016. There was no net income impact on our Consolidated Statements of Income and Comprehensive Income for the prior year periods as the net change in revenues, interest and other expenses were offset by the impact of the deconsolidation on the net income/(loss) attributable to noncontrolling interests. In addition, the new consolidation guidance did not change our consolidation conclusions for certain entities but did change the determination of whether an entity was considered a VIE and therefore impacts certain of our disclosures related to VIEs. Goodwill - In September 2015, the FASB issued guidance governing adjustments to the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill (ASU 2015-16). Such adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement amounts initially recognized or would have resulted in the recognition of additional assets and liabilities. This new guidance eliminates the requirement to retrospectively account for such adjustments. This new guidance was effective for this fiscal year beginning on October 1, 2016. The adoption of this new guidance has not had a material impact on our consolidated financial statements. Share-based compensation - In March 2016, the FASB issued amended guidance related to share-based compensation (ASU 2016-09). The amended guidance involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. We early adopted this guidance as of October 1, 2016. Our adoption of the new stock compensation simplification guidance impacts our determination of income tax expense. Generally, the amount of compensation cost recognized for financial reporting purposes varies from the amount that can ultimately be deducted on the tax return for share-based payment awards. Under the prior guidance, the tax effects of deductions in excess of compensation expense (“windfalls”), as well as the tax effect of any deficiencies (“shortfalls”) were recorded in equity to the extent of previously recognized windfalls, with any remaining shortfall recorded in income tax expense. Under the new guidance, all tax effects related to share-based payments are recorded through tax expense in the periods during which the awards are exercised or vest, as applicable. Under the transition provisions of the new guidance, we have applied this new guidance prospectively to excess tax benefits arising from vesting after the October 1, 2016 adoption date and are no longer presented within financing activities in the Consolidated Statements of Cash Flows. Under the new guidance, excess tax benefits are included along with other income tax cash flows as an operating activity in the Consolidated Statements of Cash Flows. See Notes 16 and 20 for additional information. Accounting guidance not yet adopted Revenue recognition - In May 2014, the FASB issued new guidance regarding revenue recognition (ASU 2014-09). The new guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also provides guidance on accounting for certain contract costs and requires additional disclosures. This new revenue recognition guidance, including subsequent amendments, is first effective for us for our fiscal year beginning on October 1, 2018 and allows for full retrospective adoption or modified retrospective adoption. Although, early adoption is permitted for fiscal years beginning after December 15, 2016, we do not plan to early adopt. Upon adoption, we plan to use a modified retrospective approach, with a cumulative effect adjustment to opening retained earnings. Our implementation efforts include identifying revenues and costs within the scope of the standard, analyzing contracts and reviewing potential changes to our existing revenue recognition accounting policies. Based on our implementation efforts to date, we expect that we will be required to change our current presentation of certain costs from a net presentation within revenues to a gross presentation, particularly with respect to merger & acquisitions advisory transactions and underwriting transactions. We are still evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. We are also still evaluating the impact to our disclosures as a result of adopting this new guidance. Financial instruments - In January 2016, the FASB issued guidance related to the accounting for financial instruments (ASU 2016-01). Among its provisions, this new guidance: Requires equity investments (other than those accounted for under the equity method or those that result from the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any. • Simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. • Eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. • Requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. • Clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. This new guidance is effective for us for our fiscal year beginning on October 1, 2018, generally under a modified retrospective approach, with the exception of the amendments related to equity investments without a readily determinable fair value and the use of an exit price notion to measure financial instruments for disclosure purposes, which will be applied prospectively as of the date of adoption. Early adoption is generally not permitted. We are evaluating the impact, if any, the adoption of this new guidance will have on our financial position and results of operations. Lease accounting - In February 2016, the FASB issued new guidance related to the accounting for leases (ASU 2016-02). The new guidance requires the recognition of assets and liabilities on the balance sheet related to the rights and obligations created by lease agreements, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement and presentation of expenses and cash flows arising from a lease will primarily depend upon its classification as a finance or operating lease. The new guidance requires new disclosures to help financial statement users better understand the amount, timing and cash flows arising from leases. The new guidance is first effective for our fiscal year beginning on October 1, 2019 and will be adopted under a modified retrospective approach. Early adoption is permitted. This new guidance will impact our financial position and results of operations. We are evaluating the magnitude of such impact. Derivatives and hedging (contract novations) - In March 2016, the FASB issued new guidance related to derivatives and hedging, specifically the effect of derivative contract novations on existing hedge accounting relationships (ASU 2016-05). The new guidance clarifies that a change in counterparty to a derivative instrument that has been designated as a hedging instrument under the current guidance does not, in and of itself, require re-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The new guidance is first effective for our fiscal year beginning October 1, 2017 and will be adopted under either a prospective or modified retrospective basis. We plan to adopt this guidance on a prospective basis and do not expect this new guidance to have a material effect on our financial position and results of operations. Derivatives and hedging (contingent put and call options in debt instruments) - In March 2016, the FASB issued new guidance related to derivatives and hedging, specifically contingent put and call options in debt instruments (ASU 2016-06). The new guidance clarifies the requirements for assessing whether contingent call/(put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment is required to assess the embedded call/(put) options solely in accordance with the following four-step decision sequence; an entity must consider: 1) whether the payoff is adjusted based on changes in an index; 2) whether the payoff is indexed to an underlying other than interest rates or credit risk; 3) whether the debt involves a substantial premium or discount; and 4) whether the call/(put) option is contingently exercisable. The new guidance is first effective for our fiscal year beginning October 1, 2017 and will be adopted under a modified retrospective approach. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. Equity method investments and joint ventures - In March 2016, the FASB issued new guidance related to equity method investments and joint ventures (ASU 2016-07). The new guidance eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Additionally, the new guidance requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting and therefore upon qualifying for the equity method of accounting. No retroactive adjustment of the investment is required. The new guidance is first effective for our fiscal year beginning October 1, 2017 on a prospective basis. Given that this guidance applies to entity specific transactions and would only become relevant in certain circumstances, we are unable to estimate the impact, if any, this new guidance may have on our financial position. Credit losses - In June 2016, the FASB issued new guidance related to the measurement of credit losses on financial instruments (ASU 2016-13). The amended guidance involves several aspects of the accounting for credit losses related to certain financial instruments including assets measured at amortized cost, available-for-sale debt securities and certain off-balance sheet commitments. The new guidance broadens the information that an entity must consider in developing its estimated credit losses expected to occur over the remaining life of assets measured either collectively or individually to include historical experience, current conditions and reasonable and supportable forecasts, replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (“CECL”) model. The new guidance expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating credit losses and requires new disclosures of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. The new guidance is first effective for our fiscal year beginning October 1, 2020 and will be adopted under a modified retrospective approach. Early adoption is permitted although not prior to our fiscal year beginning October 1, 2019. We have begun our implementation and evaluation efforts by establishing a cross-functional team to assess the required changes to our credit loss estimation methodologies and systems, as well as determine additional data and resources required to comply with the new guidance. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations, which will depend on, among other things, the current and expected macroeconomic conditions and the nature and characteristics of financial assets held by us on the date of adoption. Statement of Cash Flows (classification of certain cash receipts and cash payments) - In August 2016, the FASB issued amended guidance related to the Statement of Cash Flows (ASU 2016-15). The amended guidance involves several aspects of the classification of certain cash receipts and cash payments including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies), distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The amended guidance is first effective for our financial report covering the quarter ended December 31, 2018 and will be adopted under a retrospective approach. Early adoption is permitted. The adoption of this new guidance will impact our Statement of Cash Flows and will not have an impact on our financial position and results of operations. Income tax impact of intra-entity transfers of assets - In October 2016, the FASB issued guidance related to the accounting for income tax consequences of intra-entity transfers of assets (ASU 2016-16). Current GAAP prohibits the recognition of current and deferred income taxes for intra-entity asset transfers until the asset has been sold to an outside party. Under the new guidance, an entity should recognize the income tax consequences of an inter-entity transfer of an asset when the transfer occurs. The guidance is first effective for our fiscal year beginning October 1, 2018 and will be adopted under a retrospective approach. Early adoption is permitted. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. Statement of Cash Flows (restricted cash) - In November 2016, the FASB issued guidance related to the classification and presentation of changes in restricted cash on the Statement of Cash Flows (ASU 2016-18). Current GAAP does not provide guidance to address how to classify and present changes in restricted cash or restricted cash equivalents that occur when there are transfers between cash, cash equivalents and restricted cash or restricted cash equivalents and when there are direct cash receipts into restricted cash or restricted cash equivalents or direct cash payments made from restricted cash or restricted cash equivalents. Under the new guidance, an entity should present in their Statement of Cash Flows the changes during the period in the total of cash and cash equivalents and amounts described as restricted cash or restricted cash equivalents when reconciling the beginning-of-period and ending-of-period total amounts shown on the statement of cash flows. The guidance is first effective for our financial report covering the quarter ended December 31, 2018 and will be adopted under a retrospective approach. Early adoption is permitted. We are evaluating the impact the adoption of this new guidance will have on our Consolidated Statements of Cash Flows. Definition of a business - In January 2017, the FASB issued amended guidance related to the definition of a business (ASU 2017-01). This amended guidance clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is first effective for our fiscal year beginning October 1, 2018 and will be adopted on a prospective basis. Early adoption is permitted. Given the adoption of this amended guidance is dependent upon the nature of future events and circumstances, we are unable to estimate the impact, if any, the adoption of this new guidance will have on our financial position and results of operations. Goodwill - In January 2017, the FASB issued amended guidance to simplify the subsequent measurement of goodwill, eliminating “Step 2” from the goodwill impairment test (ASU 2017-04). In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under the amended guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and subsequently recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance is first effective for our financial report covering the quarter ended December 31, 2019 and will be adopted on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We will adopt this simplification guidance in the earliest period it applies to our facts and circumstances. Callable debt securities - In March 2017, the FASB issued guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date instead of the contractual life of the security (ASU 2017-08). Discounts on callable debt securities will continue to be amortized to the contractual maturity date. This guidance is first effective for our fiscal year beginning on October 1, 2019; however, early adoption is permitted. The guidance will be adopted using a modified retrospective approach. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations. Share-based payment awards - In May 2017, the FASB issued amended guidance that clarifies when changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting (ASU 2017-09). The amended guidance states an entity should account for the effects of a modification unless certain criteria are met which include that the modified award has the same fair value, vesting conditions and classification as the original award. The guidance is first effective for our fiscal year beginning October 1, 2019 on a prospective basis; however, early adoption is permitted. Given that this guidance applies to specific transactions and would only become relevant in certain circumstances, we are unable to estimate the impact, if any, this new guidance may have on our financial position. Derivatives and hedging (accounting for hedging activities) - In August 2017, the FASB issued new guidance amending its hedge accounting model (ASU 2017-12). Among other things, the new guidance: • Expands the ability to hedge nonfinancial and financial risk components. • Reduces complexity in fair value hedges of interest rate risk. • Eliminates the requirement to separately measure and report hedge ineffectiveness. • Generally requires the entire change in the fair value of a hedging instrument to be presenting in the same income statement line as the hedged item. • Modifies accounting for components excluded from the assessment of hedge effectiveness. • Eases certain documentation and hedge effectiveness assessment requirements. The new guidance is first effective for our fiscal year beginning October 1, 2019; however, early adoption is permitted. The amendments are required to be applied to cash flow and net investment hedges that exist on the date of adoption on a modified retrospective basis. Changes to presentation and disclosure requirements are only required on a prospective basis. We are evaluating whether we will early adopt this new guidance and the impact it will have on our financial position and results of operations. |
Reclassifications | Reclassifications During the period, we made a number changes to the current and previously reported amounts in the Consolidated Statements of Cash Flows. These included cash flow reclassifications to conform with changes made in the Consolidated Statements of Financial Condition (including derivative balances and the Jay Peak legal settlement), required adjustments associated with the adoption of accounting principles (including the deconsolidation of certain VIEs and treatment of excess tax benefits related to share-based compensation), and immaterial adjustments between line items (including foreign exchange impact on cash adjustments and payments with noncontrolling interest holders). |
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 discounts. b. Fees earned by financial advisors who provide investment advisory services under various manners of affiliation with us. These fee revenues are computed as either a percentage of the assets in the client account, or a flat periodic fee charged to the client for investment advice and are recognized over the period in which the service is provided. Such fees are earned from the services provided by the financial advisors who affiliate with us. Financial advisors may choose to affiliate with us as either an employee, and thus operate under our registered investment advisor (“RIA”) license, or as an independent contractor. If affiliated as an independent contractor, the financial advisor may choose to provide such advisory services either under their own RIA license, or under the RIA license of one of our subsidiaries. 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 and independent contractors who offer such services under one of our subsidiary RIA licenses are presented in “Securities commissions and fees” revenue on a gross basis. These advisors’ compensation is calculated as a percentage of the revenues generated and is recorded as a component of “Compensation, commissions and benefits expense”. ii. Independent RIA firms owned and operated by a financial advisor who is an independent contractor, may receive administrative and custodial services from us. These firms operate under their own RIA license and pay a fee for services provided to the RIA and its clients. These fees are recorded in “Securities commissions and fees” revenue, net of the portion of the fees that are remitted to the independent RIA firm. iii. We may earn fees as a result of providing a custodial platform for unaffiliated independent RIA firms. These independent RIA firms operate under their own RIA license and pay for administrative and other services that we provide. These fees are recorded in “Securities commissions and fees” revenue, net of the portion of the fees that are remitted to the independent RIA firm. c. Certain asset-based fees, which are recorded over the period earned. d. Trailing commissions from mutual funds and variable annuities/insurance products, which are recorded over the period earned. e. Insurance commission revenues and related expenses are recognized when the delivery of the insurance policy is confirmed by the carrier, the premium is remitted to the insurance company and the policy requirements are met. f. Annuity commission revenues and related expenses are recognized when the signed annuity application and premium is submitted to the annuity carrier. Investment banking - Investment banking revenues are generally recorded at the time the services related to the transaction are completed under the terms of the engagement and the related income is reasonably determinable. Such investment banking revenues include merger & acquisition and advisory fees, management fees and underwriting fees earned in connection with the distribution of public offerings, private placement fees, and syndication fees on the sale of low-income housing tax credit fund interests. Expenses associated with such transactions, net of client reimbursements, are deferred until the related revenue is recognized or the assignment is otherwise concluded and are presented net with the related revenues. Investment advisory and related administrative 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 separately managed accounts for our clients, including individuals, mutual funds and managed programs. We earn investment advisory and related administrative 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 over the period earned. We may earn performance fees from various funds and separately managed 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 and 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 funds’ underlying investments. We recognize these fees 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 provided to mutual fund and insurance/annuity companies 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 to maintain 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, which are recorded at fair value. RJ Bank maintains cash in an interest-bearing pass-through account at the Federal Reserve Bank in accordance with Regulation D of the Federal Reserve Act, which requires depository institutions to maintain minimum average reserve balances against its deposits. |
Repurchase agreements and other collateralized financings | 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. To mitigate credit exposure, we receive collateral with a fair 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. |
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 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 7 for additional information regarding this collateral). |
Financial instruments owned, financial instruments sold but not yet purchased and fair value | Financial instruments, financial instruments sold but not yet purchased at 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 price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for the asset or liability. 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 measurement considered from the perspective of a market participant. As such, our fair value measurements reflect assumptions 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 valued using unadjusted quoted prices in active markets for identical assets or liabilities. These include equity and corporate debt securities traded in active markets and certain U.S. Treasury securities and other governmental obligations. 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 and corporate debt obligations that are not actively traded, certain government and municipal obligations, interest rate swaps, asset-backed securities (“ABS”), collateralized mortgage obligations (“CMOs”), most 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 one or more inputs that are 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 our private equity investments, pools of interest-only Small Business Administration 7(a) (“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 identical securities recorded at fair value as part of our trading instruments (long positions) and trading instruments sold but not yet purchased (short positions). Valuation techniques and inputs - 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 which are actively traded will generally have a higher degree of price transparency than financial instruments that are thinly traded. 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 private equity investments, ARS, certain CMOs, ABS and certain collateralized debt obligations, to be uncertain or inactive as of both September 30, 2017 and 2016. 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 low levels of 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: Trading instruments and trading instruments sold but not yet purchased 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 instruments. Such instruments are classified within Level 1 of the fair value hierarchy. Level 2: When trading instruments are traded in secondary markets and quoted market prices for identical instruments do not exist, 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. 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 section that follows. We also maintain 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: 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. 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 Strips 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 instruments are to be announced (“TBA”) security contracts with investors for generic MBS at specific rates and prices to be delivered on settlement dates in the future. We enter into these TBAs to hedge interest rate risk that arises as part of a program our fixed income public finance operations offers to certain state and local housing finance agencies (“HFA”). Under this program, we enter into forward commitments to purchase Government National Mortgage Association (“GNMA”) or Federal National Home Mortgage Association (“FNMA”) MBS. The MBS are issued on behalf of various HFA clients and consist of the mortgages originated through their lending programs. Our forward GNMA or FNMA MBS purchase commitments arise at the time of the loan reservation for a borrower in the HFA lending program. The underlying terms of the GNMA or FNMA MBS purchase, including the price for the MBS (which is dependent upon the interest rates associated with the underlying mortgages) are also fixed at loan reservation. We typically sell such MBS upon acquisition as part of our fixed income operations. The TBA securities used to hedge these transactions 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 “Trading instruments” or “Trading instruments sold but not yet purchased,” 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 generally classified at the date of purchase and are comprised primarily of agency MBS and CMOs and equity securities held predominately by RJ Bank and ARS. Available-for-sale securities held at RJ Bank are used as part of its 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 available-for-sale securities is recognized in interest income on an accrual basis. For the RJ Bank available-for-sale 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 available-for-sale securities are recognized using the specific identification method and reflected in other revenue in the period sold. Unrealized gains or losses on available-for-sale securities, except for those that are deemed to be other-than-temporary, are recorded through other comprehensive income/(loss) and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”) on our Consolidated Statements of Financial Condition. For any available-for-sale 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 our available-for-sale securities. 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. We estimate the portion of loss attributable to credit using a discounted cash flow model. For the non-agency CMOs within the RJ Bank available-for-sale portfolio, which were classified as level 2 of the fair value hierarchy and were sold during the year ended September 30, 2017, our discounted cash flow model utilized relevant assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. The fair value of agency securities included within the RJ Bank available-for-sale 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. On a quarterly basis, we utilize bid quotations from other third party pricing services to corroborate the pricing information obtained from the primary pricing service. Securities valued using these valuation techniques are 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 models take into consideration the characteristics of the underlying securities, as well as multiple inputs including the issuer and its credit quality, data from recent trades, if any, 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 are classified within Level 3 of the fair value hierarchy. Derivative assets and derivative liabilities - Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” in our Consolidated Statements of Financial Condition. To reduce credit exposure on certain of our derivative transactions, we may enter into a master netting arrangement that allows for net settlement of all derivative transactions with each counterparty. In addition, the credit support annex allows parties to the master netting 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. Where permitted, we elect to net-by-counterparty certain derivative contracts entered into under a legally enforceable master netting agreement and, therefore, the fair value of those derivative contracts are netted by counterparty in the Consolidated Statements of Financial Condition. As we elect to net-by-counterparty the fair value of such derivative contracts, we also net-by-counterparty any cash collateral exchanged as part of those derivative agreements. Trading: We enter into interest rate contracts either as part of our fixed income business to facilitate client transactions, or to actively manage risk exposures that arise from our client activity, including a portion of our trading inventory. 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 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 between the client and the third party financial institution. We record the value of each derivative position held at fair value, as either an asset or an offsetting liability, presented within “Derivative assets” or “Derivative liabilities,” as applicable, on our Consolidated Statements of Financial Condition. Fair value is determined using an internal pricing model which includes inputs from independent pricing sources to project future cash flows under each underlying derivative contract. Since any changes in fair value are completely offset by a change in fair value of 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. We recognize revenue on derivative transactions on the transaction date, computed as the present value of the expected cash flows we expect to receive from the third party financial institution over the life of the derivative contract. The difference between the present value of these cash flows at the date of inception and the gross amount potentially received is accreted to revenue over the term of the contract. The revenue from these transactions is included within “Other revenues” on our Consolidated Statements of Income and Comprehensive Income. RJ Bank Derivatives: We enter into three-month forward foreign exchange contracts primarily to hedge the risks related to RJ Bank’s investment in their Canadian subsidiary, as well as their risk resulting from transactions denominated in currencies other that the U.S. dollar. The majority of these derivatives are designated as net investment hedges. The effective portion of the gain or loss related to the designated derivative instruments is recorded, net of tax, in shareholders’ equity as part of the cumulative translation adjustment component of AOCI with such balance impacting “Other revenues” 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 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 generally match at inception, there is no expected ineffectiveness to be recorded in earnings. The fair value of our forward foreign exchange contracts is determined by obtaining valuations from a third party pricing service or model. These valuations are based on observable inputs such as spot rates, foreign exchange rates and both U.S. and foreign 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. We enter into floating-rate advances from the FHLB to, in part, fund these assets and then enter into interest rate swaps which swap variable interest payments on this debt for fixed interest payments. These interest rate swaps are designated as cash flow hedges and effectively fix our cost of funds associated with these assets to mitigate a portion of the market risk. The effective portion of the gain or loss on these interest rate derivatives 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 “Interest expense” in the Consolidated Statements of Income and Comprehensive Income. Hedge effectiveness is assessed at inception and at 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. The fair value of these interest rate 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, we 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 that 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 measurement under the fair value hierarchy and the liability is included in “Derivative liabilities” in our Consolidated Statements of Financial Condition. Private equity investments - Private equity investments consist of direct investments and investments in third-party private equity funds and various Company-sponsored private equity funds. The private funds in which we invest 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. These investments are measured at fair value with any changes recognized in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. The fair value of private equity fund investments are determined utilizing either the net asset value (“NAV”) of the fund 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: (1) the fund does not have a readily determinable fair value; (2) 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 (3) 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 that are associated with certain of our deferred compensation programs, term deposits with Canadian financial institutions, securities pledged as collateral with clearing organizations and certain investments in funds for which, in a number of instances, one of our affiliates serves as the managing member or general partner (see Note 10 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 “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 fair value. These investments are classified within Level 1 of the fair value hierarchy. |
Available for sale securities | Available-for-sale securities - Available-for-sale securities are generally classified at the date of purchase and are comprised primarily of agency MBS and CMOs and equity securities held predominately by RJ Bank and ARS. Available-for-sale securities held at RJ Bank are used as part of its 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 available-for-sale securities is recognized in interest income on an accrual basis. For the RJ Bank available-for-sale 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 available-for-sale securities are recognized using the specific identification method and reflected in other revenue in the period sold. Unrealized gains or losses on available-for-sale securities, except for those that are deemed to be other-than-temporary, are recorded through other comprehensive income/(loss) and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”) on our Consolidated Statements of Financial Condition. For any available-for-sale 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 our available-for-sale securities. 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. We estimate the portion of loss attributable to credit using a discounted cash flow model. For the non-agency CMOs within the RJ Bank available-for-sale portfolio, which were classified as level 2 of the fair value hierarchy and were sold during the year ended September 30, 2017, our discounted cash flow model utilized relevant assumptions such as prepayment rate, default rate, and loss severity on a loan level basis. The fair value of agency securities included within the RJ Bank available-for-sale 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. On a quarterly basis, we utilize bid quotations from other third party pricing services to corroborate the pricing information obtained from the primary pricing service. Securities valued using these valuation techniques are 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 models take into consideration the characteristics of the underlying securities, as well as multiple inputs including the issuer and its credit quality, data from recent trades, if any, 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 are classified within Level 3 of the fair value hierarchy. |
Derivative contracts | Derivative assets and derivative liabilities - Our derivative assets and derivative liabilities are recorded at fair value and are included in “Derivative assets” and “Derivative liabilities” in our Consolidated Statements of Financial Condition. To reduce credit exposure on certain of our derivative transactions, we may enter into a master netting arrangement that allows for net settlement of all derivative transactions with each counterparty. In addition, the credit support annex allows parties to the master netting 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. Where permitted, we elect to net-by-counterparty certain derivative contracts entered into under a legally enforceable master netting agreement and, therefore, the fair value of those derivative contracts are netted by counterparty in the Consolidated Statements of Financial Condition. As we elect to net-by-counterparty the fair value of such derivative contracts, we also net-by-counterparty any cash collateral exchanged as part of those derivative agreements. Trading: We enter into interest rate contracts either as part of our fixed income business to facilitate client transactions, or to actively manage risk exposures that arise from our client activity, including a portion of our trading inventory. 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 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 between the client and the third party financial institution. We record the value of each derivative position held at fair value, as either an asset or an offsetting liability, presented within “Derivative assets” or “Derivative liabilities,” as applicable, on our Consolidated Statements of Financial Condition. Fair value is determined using an internal pricing model which includes inputs from independent pricing sources to project future cash flows under each underlying derivative contract. Since any changes in fair value are completely offset by a change in fair value of 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. We recognize revenue on derivative transactions on the transaction date, computed as the present value of the expected cash flows we expect to receive from the third party financial institution over the life of the derivative contract. The difference between the present value of these cash flows at the date of inception and the gross amount potentially received is accreted to revenue over the term of the contract. The revenue from these transactions is included within “Other revenues” on our Consolidated Statements of Income and Comprehensive Income. RJ Bank Derivatives: We enter into three-month forward foreign exchange contracts primarily to hedge the risks related to RJ Bank’s investment in their Canadian subsidiary, as well as their risk resulting from transactions denominated in currencies other that the U.S. dollar. The majority of these derivatives are designated as net investment hedges. The effective portion of the gain or loss related to the designated derivative instruments is recorded, net of tax, in shareholders’ equity as part of the cumulative translation adjustment component of AOCI with such balance impacting “Other revenues” 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 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 generally match at inception, there is no expected ineffectiveness to be recorded in earnings. The fair value of our forward foreign exchange contracts is determined by obtaining valuations from a third party pricing service or model. These valuations are based on observable inputs such as spot rates, foreign exchange rates and both U.S. and foreign 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. We enter into floating-rate advances from the FHLB to, in part, fund these assets and then enter into interest rate swaps which swap variable interest payments on this debt for fixed interest payments. These interest rate swaps are designated as cash flow hedges and effectively fix our cost of funds associated with these assets to mitigate a portion of the market risk. The effective portion of the gain or loss on these interest rate derivatives 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 “Interest expense” in the Consolidated Statements of Income and Comprehensive Income. Hedge effectiveness is assessed at inception and at 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. The fair value of these interest rate 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, we 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 that 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 measurement under the fair value hierarchy and the liability is included in “Derivative liabilities” in our Consolidated Statements of Financial Condition. |
Private equity investments | Private equity investments - Private equity investments consist of direct investments and investments in third-party private equity funds and various Company-sponsored private equity funds. The private funds in which we invest 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. These investments are measured at fair value with any changes recognized in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. The fair value of private equity fund investments are determined utilizing either the net asset value (“NAV”) of the fund 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: (1) the fund does not have a readily determinable fair value; (2) 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 (3) 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 - 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, securities pledged as collateral with clearing organizations and certain investments in funds for which, in a number of instances, one of our affiliates serves as the managing member or general partner (see Note 10 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 “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 fair value. These investments are classified within Level 1 of the fair value hierarchy. |
Brokerage client receivables, net and Receivables from brokers, dealers and clearing organizations | Brokerage client receivables, net 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. Brokerage client receivables are reported at their outstanding principal balance, adjusted for any allowance for doubtful accounts. When the receivable held 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 7 for additional information regarding this collateral). We present “Brokerage client receivables, net” on our Consolidated Statements of Financial Condition, net of the allowance for doubtful accounts. Our allowance for doubtful accounts was approximately $1 million at both September 30, 2017 and 2016. Receivables from brokers, dealers and clearing organizations Receivables from brokers, dealers and clearing organizations include amounts receivable for securities failed to deliver and cash on deposit with clearing organizations. We present “Receivables from brokers, dealers and clearing organizations” on our Consolidated Statements of Financial Condition, net of the allowance for doubtful accounts. Our allowance for doubtful accounts was insignificant at September 30, 2017 and 2016. |
Bank loans, net | Bank loans, net 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 securities-based loans (“SBL”) 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. We segregate our loan portfolio into six portfolio segments, C&I, commercial real estate (“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. 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. We purchase the guaranteed portions of SBA loans and accounts for these loans in accordance with the policy for loans held for sale. We then aggregate 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 our 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 we have surrendered control over the transferred assets. We do 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, and CRE construction, as well as tax-exempt loans are designated as held for investment upon inception and recognized in loans receivable. If we subsequently designate a corporate or tax-exempt 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 revenues” in the Consolidated Statements of Income and Comprehensive Income, 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 revenues” in the Consolidated Statements of Income and Comprehensive Income. Off-balance sheet loan commitments - We have 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. Our policy is generally to require customers to provide collateral at the time of closing. The amount of collateral obtained, if it is deemed necessary upon extension of credit, is based on our 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 payables” 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. We recognize 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 the revenue 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 we would not otherwise consider. Loans structured as described above are deemed to be a trouble debt restructuring (“TDR”). 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 and tax-exempt loans thereafter until the loan qualifies for return to accrual status. Loans (including first mortgage and home equity residential mortgage TDRs) 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. Corporate loan TDRs have generally been partially charged off and therefore, remain on nonaccrual status until the loan is fully resolved. 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 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 revenues” on our Consolidated Statements of Income and Comprehensive Income. Impaired loans - Loans in all classes are considered to be impaired when, based on current information and events, it is probable that we 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. We determine 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, we measure 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 - We maintain an allowance for loan losses to provide for probable losses inherent in our 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 we believe the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. We have 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, we rely on estimates and exercise 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 losses is comprised of two components: allowances calculated based on formulas for homogeneous classes of loans collectively evaluated for impairment, which are re-evaluated quarterly and adjusted based on our analysis of certain qualitative factors, and specific allowances assigned to certain classified loans individually evaluated for impairment. 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 and tax-exempt 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 and tax-exempt 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 we have 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 loan-level probability of default and loss given default estimates in combination with certain adjustments for loss emergence period. The quantitative loss rates for corporate and tax-exempt 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 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 our historical loss data over a period of time. We currently utilize 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. The allowance for loan losses for SBL is determined judgmentally by management, which utilizes peer benchmarking data as we have historically not experienced losses on this portfolio. We reserve 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 and tax-exempt 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 we determine that it is likely a corporate or tax-exempt 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. For C&I and tax-exempt loans, we evaluate all sources of repayment 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 8 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 our 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. The agent bank’s regulator reviews a portion of SNC loans on a semi-annual basis, a process in which other participating banks have no involvement. Once the SNC regulatory review process is complete, we receive 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. We 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 as a result of the review may impact our reserves and charge-offs during the quarter that the SNC information is received from the OCC, however, these differences in classifications are generally insignificant. The amount of such adjustments depend upon the classification and whether we 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. We incorporate into our 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. Corporate loans are subject to our internal review procedures and regulatory review by the OCC as part of our regulatory examination. Every residential mortgage loan over 60 days past due is reviewed 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 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 we estimate will ultimately be collected, based on the value of the underlying collateral less estimated costs to sell. We predominantly use 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. We take further charge-offs against the owned asset if an appraisal has a lower valuation than the original BPO, but do 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. |
Loans to financial advisors, net | Loans to financial advisors, net We offer loans to financial advisors and certain other 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 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. |
Other assets | Other assets We carry 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. We annually evaluate our 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 also 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 20 for information on the non-qualified deferred compensation plans). The life insurance policies are carried at cash surrender value as determined by the insurer. See Note 9 for additional information. |
Investments in real estate partnerships held by consolidated variable interest entities | Investments in real estate partnerships held by consolidated variable interest entities Raymond James Tax Credit Funds, Inc. (“RJTCF”), a wholly owned subsidiary of RJF, or one of its affiliates, is the managing member or general partner in LIHTC funds, some of which require consolidation (refer to the separate discussion that follows of our policies regarding the evaluation of VIEs to determine if consolidation is required ). These funds invest in housing project limited partnerships or limited liability companies (“LLCs”) which purchase and develop affordable housing properties qualifying for federal and state low-income housing tax credits. The balance presented is the investment in project partnership balance of all of the LIHTC fund VIEs which require consolidation. Additional information is presented in Note 10 . |
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 expenses” 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 determine 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 January 1 as our annual goodwill impairment evaluation date, evaluating balances as of December 31 (see Note 12 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 management’s judgment, the determination of a reasonable estimate of loss is not possible. We record liabilities related to legal and regulatory proceedings in “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. 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. 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 discussed above, we assumed certain DBRSU awards as part of our acquisition of Alex. Brown that will ultimately be settled in DB common shares provided that certain performance metrics are achieved. The portion of these awards that related to services performed by the award recipients before the acquisition of Alex. Brown represented consideration transferred in the business combination. The portion of these awards which related to compensation for future services were treated as a prepaid compensation asset which had a corresponding derivative liability. The prepaid compensation asset is amortized over the remaining requisite service period of the recipient 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 assets and derivative liabilities” 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 in “Compensation, commissions and benefits” expense in our Consolidated Statements of Income and Comprehensive Income. See Note 20 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 directly hold 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 9 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. See Note 20 for additional information. |
Leases | Leases We lease office space and equipment under operating leases. We recognize rent expense related to these operating leases on a straight-line basis over the lease term. The lease term commences on the earlier of the date when we become legally obligated for the rent payments or the date on which we take possession of the property. For tenant improvement allowances and rent holidays, we record a deferred rent liability in “Other payables” 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. |
Foreign currency translation | Foreign currency translation The statements of financial condition of the foreign subsidiaries 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 income/(loss) and are thereafter presented in equity as a component of AOCI. |
Income taxes | Income taxes The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year. We utilize the asset and liability method to provide income taxes on all transactions recorded in the consolidated financial statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that we expect to be in effect when the underlying items of income and expense are realized. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns, including the repatriation of undistributed earnings of foreign subsidiaries. Variations in the actual outcome of these future tax consequences could materially impact our financial position, results of operations, or liquidity. See Note 16 for further information on our income taxes. |
Earnings per share (EPS) | Earnings per share (“EPS”) Basic EPS is calculated by dividing earnings available to common shareholders by the weighted-average number of common shares outstanding. Earnings available to common shareholders’ represents Net Income Attributable to Raymond James Financial, Inc. reduced by the allocation of earnings and dividends to participating securities. Diluted EPS is similar to basic EPS, but adjusts for the dilutive effect of outstanding stock options 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 VIEs: certain private equity investments, a trust fund established for employee retention purposes (“Restricted Stock Trust Fund”), certain LIHTC funds and certain new market tax credit funds (“NMTC Funds”). Determination of the primary beneficiary of a VIE - We consolidate VIEs that are subject to assessment when we are deemed to be the primary beneficiary of the VIE. The process for determining whether we are the primary beneficiary of the VIE is to conclude whether we are a party to the VIE holding a variable interest that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE, and (2) has the obligations to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Private Equity Interests - As part of our private equity investments, we hold interests in a number of limited partnerships (our “Private Equity Interests”). We have concluded that the Private Equity Interests are VIEs, primarily as a result of the treatment of limited partner kick-out and participation rights as a simple majority of the limited partners cannot initiate an action to kick-out the general partner without cause and the limited partners with equity at-risk lack substantive participating rights. In our analysis of the criteria to determine whether we are the primary beneficiary of the Private Equity Interests VIEs, we analyze the power and benefits criteria. In a number of these entities, we are a passive limited partner investor, and thus we do not have the power to make decisions that most significantly affect the economic performance of such VIEs. Accordingly, in such circumstances we have determined we are not the primary beneficiary and therefore we do not consolidate the VIE. However, in certain of these entities, we have concluded that we are the primary beneficiary as we meet the power and benefits criteria. In such instances, we consolidate the Private Equity Interests VIE. 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 one of our Canadian subsidiaries. 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 LIHTC funds - 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. 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, in nearly all instances, has significant participating rights over the activities that most significantly impact the economics of the fund. 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, in nearly all, these funds are not consolidated. In non-guaranteed 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 its share of any residuals upon the termination of the fund, are potentially significant to the fund. As such residuals received upon termination are not expected to be significant to the funds, RJTCF does not consolidate non-guaranteed multi-investor funds. Guaranteed LIHTC fund - In conjunction 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 (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. Direct investments in LIHTC project partnerships - RJ Bank is also the investor member of a LIHTC fund which we have determined to be a VIE, and in which a subsidiary of RJTCF is the managing member. We have determined that RJ Bank is the primary beneficiary of this VIE and therefore we consolidate the fund. All LIHTC funds which we consolidated are investor members in certain LIHTC project partnerships. Since unrelated third parties are the managing members of the investee project partnerships, we have determined that consolidation of these project partnerships is not required and the funds account for their project partnership investments under the equity method. The carrying value of the funds’ project partnership investments are included in “Investments in real estate partnerships held by consolidated variable interest entities” on our Consolidated Statements of Financial Condition (see Note 10 for additional information). New market tax credit funds - An entity which was at one time an affiliate of Morgan Keegan (as hereinafter defined) is the managing member of a number of NMTC Funds. NMTC Funds are organized as LLCs 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 Funds, 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. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition Related Expenses | The table below presents a summary of acquisition-related expenses incurred in each respective period. Our acquisition-related expenses associated with our fiscal year 2015 acquisitions were not significant. Year ended September 30, $ in thousands 2017 2016 Severance $ 5,859 $ 866 Acquisition and integration-related incentive compensation costs 5,474 — Early termination costs of assumed contracts 1,329 — Information systems integration costs 1,380 21,752 Legal and regulatory 3,192 8,334 Post-closing purchase price contingency (3,345 ) — DBRSU obligation and related hedge 770 4,837 All other 3,336 4,917 Total acquisition-related expenses $ 17,995 $ 40,706 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included in our Consolidated Statements of Financial Condition. See Note 6 for additional information. $ in thousands Quoted prices Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of Assets at fair value on a recurring basis Trading instruments Municipal and provincial obligations $ 83 $ 221,884 $ — $ — $ 221,967 Corporate obligations 9,361 81,577 — — 90,938 Government and agency obligations 6,354 28,977 — — 35,331 Agency MBS and CMOs 913 133,070 — — 133,983 Non-agency CMOs and ABS — 28,442 5 — 28,447 Total debt securities 16,711 493,950 5 — 510,666 Equity securities 16,090 389 — — 16,479 Brokered certificates of deposit — 31,492 — — 31,492 Other 32 — 5,594 (1) — 5,626 Total trading instruments 32,833 525,831 5,599 — 564,263 Available-for-sale securities Agency MBS and CMOs — 2,081,079 — — 2,081,079 Other securities 1,032 — — — 1,032 ARS preferred securities — — 106,171 — 106,171 Total available-for-sale securities 1,032 2,081,079 106,171 — 2,188,282 Derivative assets Interest rate contracts Matched book — 288,035 — — 288,035 Other — 86,436 — (55,728 ) 30,708 Foreign exchange contracts — 32 — — 32 Total derivative assets — 374,503 — (55,728 ) 318,775 Private equity investments Measured at fair value — — 88,885 — 88,885 Measured at NAV 109,894 Total private equity investments — — 88,885 — 198,779 Other investments (2) 220,312 332 336 — 220,980 Total assets at fair value on a recurring basis $ 254,177 $ 2,981,745 $ 200,991 $ (55,728 ) $ 3,491,079 Assets at fair value on a nonrecurring basis Bank loans, net Impaired loans $ — $ 17,474 $ 23,994 $ — $ 41,468 Loans held for sale (3) — 11,285 — — 11,285 Total bank loans, net — 28,759 23,994 — 52,753 Other Assets: OREO — 880 — — 880 Total assets at fair value on a nonrecurring basis $ — $ 29,639 $ 23,994 $ — $ 53,633 (continued on next page) $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of Liabilities at fair value on a recurring basis Trading instruments sold but not yet purchased Municipal and provincial obligations $ 304 $ — $ — $ — $ 304 Corporate obligations 1,286 35,272 — — 36,558 Government obligations 167,622 — — — 167,622 Agency MBS and CMOs 2,477 — — — 2,477 Non-agency MBS and CMOs — 5,028 — — 5,028 Total debt securities 171,689 40,300 — — 211,989 Equity securities 8,118 1,342 — — 9,460 Total trading instruments sold but not yet purchased 179,807 41,642 — — 221,449 Derivative liabilities Interest rate contracts Matched book — 288,035 — — 288,035 Other — 101,893 — (59,410 ) 42,483 Foreign exchange contracts — 646 — — 646 DBRSU obligation (equity) — 25,800 — — 25,800 Total derivative liabilities — 416,374 — (59,410 ) 356,964 Total liabilities at fair value on a recurring basis $ 179,807 $ 458,016 $ — $ (59,410 ) $ 578,413 (1) 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 17 for additional information. (2) Includes $44 million of financial instruments that are related to obligations to perform under certain deferred compensation plans and DB shares with a fair value of $19 million as of September 30, 2017 which we hold as an economic hedge against the DBRSU obligation. See Notes 2 and 20 for additional information. (3) Loans classified as held for sale recorded at a fair value lower than cost. $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of 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 Equity securities 14,529 1,500 — — 16,029 Brokered certificates of deposit — 35,206 — — 35,206 Other 555 3 6,020 (1) — 6,578 Total trading instruments 32,389 675,134 6,027 — 713,550 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 Municipal obligations — — 25,147 — 25,147 Preferred securities — — 100,018 — 100,018 Total available-for-sale securities 1,417 732,816 125,165 — 859,398 Derivative assets Interest rate contracts Matched-book — 422,196 — — 422,196 Other — 163,433 — (107,539 ) 55,894 Foreign exchange contracts — 2,016 — — 2,016 Total derivative assets — 587,645 — (107,539 ) 480,106 Private equity investments Measured at fair value — — 83,165 — 83,165 Measured at NAV 111,469 Total private equity investments — — 83,165 — 194,634 Other investments (2) 325,655 257 441 — 326,353 Total assets at fair value on a recurring basis $ 359,461 $ 1,995,852 $ 214,798 $ (107,539 ) $ 2,574,041 Assets at fair value on a nonrecurring basis Bank loans, net Impaired loans $ — $ 23,146 $ 47,982 $ — $ 71,128 Loans held for sale (3) — 18,177 — — 18,177 Total bank loans, net — 41,323 47,982 — 89,305 Other assets: OREO — 679 — — 679 Total assets at fair value on a nonrecurring basis $ — $ 42,002 $ 47,982 $ — $ 89,984 (continued on next page) $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of 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 Equity securities 18,382 — — — 18,382 Total trading instruments sold but not yet purchased 290,312 29,791 — — 320,103 Derivative liabilities Interest rate contracts Matched book — 422,196 — — 422,196 Other — 178,502 — (142,859 ) 35,643 DBRSU obligation (equity) — 17,769 — — 17,769 Total derivative liabilities — 618,467 — (142,859 ) 475,608 Total liabilities at fair value on a recurring basis $ 290,312 $ 648,258 $ — $ (142,859 ) $ 795,711 (1) 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 17 for additional information. (2) Includes $77 million of financial instruments that are related to obligations to perform under certain deferred compensation 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 and 20 for additional information. (3) Loans classified as held for sale recorded at a fair value lower than cost. |
Level 3 Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis, Roll Forward Table of Change in Balances | Our policy is to treat transfers between levels of the fair value hierarchy as having occurred at the end of the reporting period. Year ended September 30, 2017 Level 3 assets at fair value Trading instruments Available-for-sale securities Private equity and other investments $ in thousands Non-agency CMOs and ABS Other ARS – ARS - Private equity investments Other investments Fair value beginning of year $ 7 $ 6,020 $ 25,147 $ 100,018 $ 83,165 $ 441 Total gains/(losses) for the year: Included in earnings 1 (2,568 ) 641 (84 ) 8,343 118 Included in other comprehensive income — — 2,344 7,705 — — Purchases and contributions — 67,316 — — 5,245 217 Sales — (65,174 ) (28,132 ) (1,468 ) (168 ) (245 ) Distributions (3 ) — — — (7,700 ) — Transfers: Into Level 3 — — — — — — Out of Level 3 — — — — — (195 ) Fair value end of year $ 5 $ 5,594 $ — $ 106,171 $ 88,885 $ 336 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 $ (1,626 ) $ — $ 7,705 $ 8,331 $ 118 Year ended September 30, 2016 Trading instruments Available-for-sale securities Private equity and other investments $ in thousands Corporate obligations Non-agency CMOs and ABS Other ARS – ARS - Private equity investments Other investments Fair value beginning of year $ 156 $ 9 $ 6,961 $ 28,015 $ 110,749 $ 77,435 $ 565 Total gains/(losses) for the year: Included in earnings (137 ) — (3,048 ) 133 136 11,517 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: Into Level 3 — — — — — — — Out of Level 3 — — — — — — — Fair value end of year $ — $ 7 $ 6,020 $ 25,147 $ 100,018 $ 83,165 $ 441 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 $ (2,752 ) $ (1,348 ) $ (9,574 ) $ 11,517 $ 2 |
Gains and Losses (Realized and Unrealized) Included in Revenues | The following table presents the gains/(losses) related to Level 3 recurring fair value measurements included in our Consolidated Statements of Income and Comprehensive Income. $ in thousands Net trading profits Other revenues Other comprehensive income For the year ended September 30, 2017 Total gains/(losses) included in earnings $ (2,567 ) $ 9,018 $ 10,049 Change in unrealized gains/(losses) for assets held at the end of the year $ (1,625 ) $ 8,449 $ 7,705 For the year ended September 30, 2016 Total gains/(losses) included in earnings $ (3,185 ) $ 11,795 $ (11,049 ) Change in unrealized gains/(losses) for assets held at the end of the year $ (2,750 ) $ 11,519 $ (10,922 ) |
Significant Assumptions Used in Valuation of Level 3 Financial Instruments | The table below presents the valuation techniques and significant unobservable inputs used in the valuation of a significant majority of our financial instruments classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Level 3 financial instrument $ in thousands Fair value at September 30, 2017 Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements: ARS preferred securities $ 106,171 Discounted cash flow Average discount rate 5.46% - 6.81% (6.03%) Average interest rates applicable to future interest income on the securities (1) 2.58% - 3.44% (2.72%) Prepayment year (2) 2017 - 2021 (2021) Private equity investments (not measured at NAV): $ 68,454 Income or market approach: Scenario 1 - income approach - discounted cash flow Discount rate 13% - 25% (22.4%) Terminal growth rate of cash flows 3% - 3% (3%) Terminal year 2020 - 2042 (2021) Scenario 2 - market approach - market multiple method EBITDA Multiple 5.25 - 7.0 (5.8) Weighting assigned to outcome of scenario 1/scenario 2 87%/13% $ 20,431 Transaction price or other investment-specific events (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements: Bank loans: impaired loans - residential $ 20,736 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Bank loans: impaired loans: corporate $ 3,258 Appraisal or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) (1) Future interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (2) Assumed calendar year of at least a partial redemption of the outstanding security by the issuer. (3) Certain private equity investments are valued initially at the transaction price until either our periodic review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, when any of which indicate that a change in the carrying values of these investments is appropriate. (4) The valuation techniques used for the impaired corporate loan portfolio are appraisals less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. (continued on next page) (continued from previous page) Level 3 financial instrument $ in thousands Fair value at September 30, 2016 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 5.17% - 6.36% (5.77%) Average interest rates applicable to future interest income on the securities (1) 1.23% - 1.83% (1.53%) Prepayment year (2) 2019 - 2026 (2022) Available-for-sale securities ARS Municipals - tax- exempt preferred securities $ 14,734 Discounted cash flow Average discount rate 4.62% - 5.62% (5.12%) Average interest rates applicable to future interest income on the securities (1) 0.91% - 0.91% (0.91%) Prepayment year (2) 2016 - 2021 (2021) Available-for-sale securities ARS Preferred securities $ 100,018 Discounted cash flow Average discount rate 4.87% - 6.34% (5.56%) Average interest rates applicable to future interest income on the securities (1) 1.24% - 2.51% (1.34%) Prepayment year (2) 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 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 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 (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements: Bank loans - impaired residential $ 21,909 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.2 yrs.) Bank loans - impaired corporate $ 26,073 Appraisal or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) (1) Future interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (2) Assumed calendar year of at least a partial redemption of the outstanding security by the issuer. (3) Certain private equity investments are valued initially at the transaction price until either our periodic review, significant transactions occur, new developments become known, or we receive information from the fund manager that allows us to update our proportionate share of net assets, when any of which indicate that a change in the carrying values of these investments is appropriate. (4) The valuation techniques used for the impaired corporate loan portfolio are appraisals less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. |
Net asset value of recorded value and unfunded commitments [Table Text Block] | The table below presents the recorded value and unfunded commitments related to our private equity portfolio. Unfunded commitment $ in thousands Recorded Value RJF Noncontrolling Interest Total September 30, 2017 Private equity investments measured at NAV $ 109,894 $ 20,973 $ 2,273 $ 23,246 Private equity investments measured at fair value 88,885 Total private equity investments $ 198,779 September 30, 2016 Private equity investments measured at NAV $ 111,469 $ 27,542 $ 3,001 $ 30,543 Private equity investments measured at fair value 83,165 Total private equity investments $ 194,634 |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | The carrying amounts below exclude financial instruments which have been recorded at fair value and those recorded at amounts which approximate fair value in the Consolidated Statements of Financial Condition. $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total estimated fair value Carrying amount September 30, 2017 Financial assets: Bank loans, net $ — $ 23,001 $ 16,836,745 $ 16,859,746 $ 16,954,042 Loans to financial advisors, net $ — $ — $ 698,862 $ 698,862 $ 863,647 Financial liabilities: Bank deposits $ — $ 17,417,678 $ 313,359 $ 17,731,037 $ 17,732,362 Other borrowings $ — $ 29,278 $ — $ 29,278 $ 28,813 Senior notes payable $ — $ 1,647,696 $ — $ 1,647,696 $ 1,548,839 September 30, 2016 Financial assets: Bank loans, net $ — $ 196,109 $ 14,925,802 $ 15,121,911 $ 15,121,430 Loans to financial advisors, net $ — $ — $ 699,733 $ 699,733 $ 826,776 Financial liabilities: Bank deposits $ — $ 13,947,310 $ 318,228 $ 14,265,538 $ 14,262,547 Other borrowings $ — $ 34,520 $ — $ 34,520 $ 33,391 Senior notes payable $ 362,180 $ 1,452,071 $ — $ 1,814,251 $ 1,680,587 |
AVAILABLE FOR SALE SECURITIES (
AVAILABLE FOR SALE SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity 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: $ in thousands Cost basis Gross unrealized gains Gross unrealized losses Fair value September 30, 2017 Agency MBS and CMOs $ 2,089,153 $ 1,925 $ (9,999 ) $ 2,081,079 Other securities 1,575 — (543 ) 1,032 Total RJ Bank available-for-sale securities 2,090,728 1,925 (10,542 ) 2,082,111 ARS preferred securities 101,674 4,497 — 106,171 Total available-for-sale securities $ 2,192,402 $ 6,422 $ (10,542 ) $ 2,188,282 September 30, 2016 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 ARS municipal obligations 27,491 14 (2,358 ) 25,147 ARS 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 (1) As of September 30, 2016 , the non-credit portion of unrealized losses related to non-agency CMOs with previously recorded OTTI before taxes was $2 million , recorded in AOCI . See Note 18 for additional information. During the year ended September 30, 2017 , we sold the remainder of our non-agency CMOs . |
Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available For Sales Securities | 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, 2017 $ in thousands Within one year After one but within five years After five but within ten years After ten years Total Agency MBS and CMOs: Amortized cost $ — $ 110,510 $ 675,502 $ 1,303,141 $ 2,089,153 Carrying value — 110,019 673,454 1,297,606 2,081,079 Weighted-average yield — 1.96 % 1.87 % 1.97 % 1.94 % Other securities: Amortized cost $ — $ — $ — $ 1,575 $ 1,575 Carrying value — — — 1,032 1,032 Weighted-average yield — — — — — Sub-total agency MBS and CMOs and other securities: Amortized cost $ — $ 110,510 $ 675,502 $ 1,304,716 $ 2,090,728 Carrying value — 110,019 673,454 1,298,638 2,082,111 Weighted-average yield — 1.96 % 1.87 % 1.97 % 1.94 % ARS preferred securities: Amortized cost $ — $ — $ — $ 101,674 $ 101,674 Carrying value — — — 106,171 106,171 Weighted-average yield — — — 2.10 % 2.10 % Total available-for-sale securities: Amortized cost $ — $ 110,510 $ 675,502 $ 1,406,390 $ 2,192,402 Carrying value — 110,019 673,454 1,404,809 2,188,282 Weighted-average yield — 1.96 % 1.87 % 1.98 % 1.95 % |
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, 2017 Less than 12 months 12 months or more Total $ in thousands Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses Agency MBS and CMOs $ 1,119,715 $ (5,621 ) $ 295,528 $ (4,378 ) $ 1,415,243 $ (9,999 ) Other securities — — 1,032 (543 ) 1,032 (543 ) Total $ 1,119,715 $ (5,621 ) $ 296,560 $ (4,921 ) $ 1,416,275 $ (10,542 ) September 30, 2016 Less than 12 months 12 months or more Total $ in thousands Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses 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 ) |
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, $ in thousands 2017 2016 2015 Amount related to credit losses on securities we held at the beginning of the year $ 8,107 $ 11,847 $ 18,703 Decreases to the amount related to credit losses for securities sold during the year (8,107 ) (3,740 ) (6,856 ) Amount related to credit losses on securities we held at the end of the year $ — $ 8,107 $ 11,847 |
DERIVATIVE FINANCIAL INSTRUME37
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The table below presents the gross fair value and notional amount of derivative contracts by product type, the amounts of counterparty and cash collateral netting in our Consolidated Statements of Financial Condition, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting under GAAP. September 30, 2017 September 30, 2016 $ in thousands Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate contracts: Matched book $ 288,035 $ 288,035 $ 2,766,488 $ 422,196 $ 422,196 $ 2,938,590 Other 86,436 100,503 4,931,809 163,433 151,831 4,285,033 Foreign exchange contracts 3 530 437,783 620 — 313,562 DBRSU obligation (equity) (1) — 25,800 25,800 — 17,769 17,769 Subtotal 374,474 414,868 8,161,880 586,249 591,796 7,554,954 Derivatives designated as hedging instruments Interest rate contracts — 1,390 850,000 — 26,671 550,000 Foreign exchange contracts 29 116 1,048,646 1,396 — 753,373 Subtotal 29 1,506 1,898,646 1,396 26,671 1,303,373 Total gross fair value/notional amount 374,503 416,374 $ 10,060,526 587,645 618,467 $ 8,858,327 Offset in the Statements of Financial Condition Counterparty netting (6,045 ) (6,045 ) (55,498 ) (55,498 ) Cash collateral netting (49,683 ) (53,365 ) (52,041 ) (87,361 ) Total amounts offset (55,728 ) (59,410 ) (107,539 ) (142,859 ) Net amounts presented in the Statements of Financial Condition 318,775 356,964 480,106 475,608 Gross amounts not offset in the Statements of Financial Condition Financial instruments (2) (293,340 ) (288,035 ) (451,224 ) (424,633 ) Cash received/(paid) — — — (26,671 ) Subtotal (293,340 ) (288,035 ) (451,224 ) (451,304 ) Total $ 25,435 $ 68,929 $ 28,882 $ 24,304 (1) The DBRSU obligation is not subject to an enforceable master netting arrangement or other similar arrangement. However, we hold shares of DB as an economic hedge against this obligation with a fair value of $19 million and $12 million as of September 30, 2017 and 2016 , respectively, which are a component of “Other investments” on our Consolidated Statements of Financial Condition. See additional discussion of the DBRSUs in Note 20 . (2) Although the matched book 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. As a result, we present the matched book amounts net in the table above. |
Schedule of Derivative Liabilities at Fair Value | The table below presents the gross fair value and notional amount of derivative contracts by product type, the amounts of counterparty and cash collateral netting in our Consolidated Statements of Financial Condition, as well as cash and securities collateral posted and received under enforceable credit support agreements that do not meet the criteria for netting under GAAP. September 30, 2017 September 30, 2016 $ in thousands Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate contracts: Matched book $ 288,035 $ 288,035 $ 2,766,488 $ 422,196 $ 422,196 $ 2,938,590 Other 86,436 100,503 4,931,809 163,433 151,831 4,285,033 Foreign exchange contracts 3 530 437,783 620 — 313,562 DBRSU obligation (equity) (1) — 25,800 25,800 — 17,769 17,769 Subtotal 374,474 414,868 8,161,880 586,249 591,796 7,554,954 Derivatives designated as hedging instruments Interest rate contracts — 1,390 850,000 — 26,671 550,000 Foreign exchange contracts 29 116 1,048,646 1,396 — 753,373 Subtotal 29 1,506 1,898,646 1,396 26,671 1,303,373 Total gross fair value/notional amount 374,503 416,374 $ 10,060,526 587,645 618,467 $ 8,858,327 Offset in the Statements of Financial Condition Counterparty netting (6,045 ) (6,045 ) (55,498 ) (55,498 ) Cash collateral netting (49,683 ) (53,365 ) (52,041 ) (87,361 ) Total amounts offset (55,728 ) (59,410 ) (107,539 ) (142,859 ) Net amounts presented in the Statements of Financial Condition 318,775 356,964 480,106 475,608 Gross amounts not offset in the Statements of Financial Condition Financial instruments (2) (293,340 ) (288,035 ) (451,224 ) (424,633 ) Cash received/(paid) — — — (26,671 ) Subtotal (293,340 ) (288,035 ) (451,224 ) (451,304 ) Total $ 25,435 $ 68,929 $ 28,882 $ 24,304 (1) The DBRSU obligation is not subject to an enforceable master netting arrangement or other similar arrangement. However, we hold shares of DB as an economic hedge against this obligation with a fair value of $19 million and $12 million as of September 30, 2017 and 2016 , respectively, which are a component of “Other investments” on our Consolidated Statements of Financial Condition. See additional discussion of the DBRSUs in Note 20 . (2) Although the matched book 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. As a result, we present the matched book amounts net in the table above. |
Derivative Gain (Loss) Recognized in AOCI | Gains/(losses) recognized in AOCI, net of income taxes, on derivatives designated as hedging instruments are as follows (see Note 18 for additional information): Year ended September 30, $ in thousands 2017 2016 2015 Interest rate contracts (cash flow hedges) $ 23,232 $ (11,833 ) $ (4,650 ) Foreign exchange contracts (net investment hedges) (26,281 ) (6,721 ) 60,331 Total gains/(losses) recognized in AOCI, net of taxes $ (3,049 ) $ (18,554 ) $ 55,681 |
Amount of Gain (Loss) on Derivatives Recognized in Income | Gains/(losses) on derivatives not designated as hedging instruments recognized on the Consolidated Statements of Income and Comprehensive Income are as follows: Location of the impact recognized on derivatives included in the Consolidated Statements of Income and Comprehensive Income Gain/(loss) recognized during the year ended September 30, $ in thousands 2017 2016 2015 Interest rate contracts: Matched book Other revenues $ 36 $ 92 $ 901 Other Net trading profit $ 7,895 $ 2,819 $ 3,107 Foreign exchange contracts Other revenues $ (19,961 ) $ (2,662 ) $ 20,459 DBRSUs Compensation, commissions and benefits expense $ (5,648 ) $ 2,457 $ — DBRSUs Acquisition-related expenses $ (2,383 ) $ — $ — |
COLLATERALIZED AGREEMENTS AND38
COLLATERALIZED AGREEMENTS AND FINANCINGS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Offsetting [Abstract] | |
Schedule of Offsetting Transactions | Although not offset on the Consolidated Statements of Financial Condition, these transactions are included in the following table. Assets Liabilities $ in thousands Reverse repurchase agreements Securities borrowed Repurchase agreements Securities loaned September 30, 2017 Gross amounts of recognized assets/liabilities $ 404,462 $ 138,319 $ 220,942 $ 383,953 Gross amounts offset in the Statements of Financial Condition — — — — Net amounts presented in the Statements of Financial Condition 404,462 138,319 220,942 383,953 Gross amounts not offset in the Statements of Financial Condition (404,462 ) (134,304 ) (220,942 ) (373,132 ) Net amount $ — $ 4,015 $ — $ 10,821 September 30, 2016 Gross amounts of recognized assets/liabilities $ 470,222 $ 170,860 $ 193,229 $ 677,761 Gross amounts offset in the Statements of Financial Condition — — — — Net amounts presented in the Statements of Financial Condition 470,222 170,860 193,229 677,761 Gross amounts not offset in the Statements of Financial Condition (470,222 ) (167,169 ) (193,229 ) (664,870 ) Net amount $ — $ 3,691 $ — $ 12,891 |
Schedule of Offsetting Transactions | Although not offset on the Consolidated Statements of Financial Condition, these transactions are included in the following table. Assets Liabilities $ in thousands Reverse repurchase agreements Securities borrowed Repurchase agreements Securities loaned September 30, 2017 Gross amounts of recognized assets/liabilities $ 404,462 $ 138,319 $ 220,942 $ 383,953 Gross amounts offset in the Statements of Financial Condition — — — — Net amounts presented in the Statements of Financial Condition 404,462 138,319 220,942 383,953 Gross amounts not offset in the Statements of Financial Condition (404,462 ) (134,304 ) (220,942 ) (373,132 ) Net amount $ — $ 4,015 $ — $ 10,821 September 30, 2016 Gross amounts of recognized assets/liabilities $ 470,222 $ 170,860 $ 193,229 $ 677,761 Gross amounts offset in the Statements of Financial Condition — — — — Net amounts presented in the Statements of Financial Condition 470,222 170,860 193,229 677,761 Gross amounts not offset in the Statements of Financial Condition (470,222 ) (167,169 ) (193,229 ) (664,870 ) Net amount $ — $ 3,691 $ — $ 12,891 |
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 delivered or repledged, to satisfy one of our purposes described above: September 30, $ in thousands 2017 2016 Collateral we received that is available to be delivered or repledged $ 3,030,736 $ 2,925,335 Collateral that we delivered or repledged $ 1,068,912 $ 1,536,393 |
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, $ in thousands 2017 2016 Financial instruments owned, at fair value, pledged to counterparties that: Had the right to deliver or repledge $ 363,739 $ 440,642 Did not have the right to deliver or repledge $ 44,930 $ 18,788 |
Transfer of certain financial assets accounted for as secured borrowings | The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings: $ in thousands Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total As of September 30, 2017: Repurchase agreements Government and agency obligations $ 107,284 $ — $ — $ — $ 107,284 Agency MBS and CMOs 113,658 — — — 113,658 Total Repurchase Agreements 220,942 — — — 220,942 Securities lending Equity securities 383,953 — — — 383,953 Total $ 604,895 $ — $ — $ — $ 604,895 Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the table within this footnote $ 604,895 Amounts related to repurchase agreements and securities lending transactions not included in the table within this footnote $ — As of September 30, 2016: 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 table within this footnote $ 870,990 Amounts related to repurchase agreements and securities lending transactions not included in the table within this footnote $ — |
BANK LOANS, NET (Tables)
BANK LOANS, NET (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Held for Sale and Held for Investment Loan Portfolios | “Loans held for sale, net” and “Total loans held for investment, net” in the table below are presented net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs. September 30, 2017 2016 2015 $ in thousands Balance % Balance % Balance % Loans held for sale, net $ 70,316 — $ 214,286 1 % $ 119,519 1 % Loans held for investment: C&I loans 7,385,910 43 % 7,470,373 48 % 6,928,018 52 % CRE construction loans 112,681 1 % 122,718 1 % 162,356 1 % CRE loans 3,106,290 18 % 2,554,071 17 % 2,054,154 16 % Tax-exempt loans 1,017,791 6 % 740,944 5 % 484,537 4 % Residential mortgage loans 3,148,730 18 % 2,441,569 16 % 1,962,614 15 % SBL 2,386,697 14 % 1,904,827 12 % 1,481,504 11 % Total loans held for investment 17,158,099 15,234,502 13,073,183 Net unearned income and deferred expenses (31,178 ) (40,675 ) (32,424 ) Total loans held for investment, net 17,126,921 15,193,827 13,040,759 Total loans held for sale and investment 17,197,237 100 % 15,408,113 100 % 13,160,278 100 % Allowance for loan losses (190,442 ) (197,378 ) (172,257 ) Bank loans, net $ 17,006,795 $ 15,210,735 $ 12,988,021 September 30, 2014 2013 $ in thousands Balance % Balance % Loans held for sale, net $ 45,988 — $ 110,292 1 % Loans held for investment: C&I loans 6,422,347 58 % 5,246,005 59 % CRE construction loans 94,195 1 % 60,840 1 % CRE loans 1,689,163 15 % 1,283,046 14 % Tax-exempt loans 122,218 1 % — — Residential mortgage loans 1,751,747 16 % 1,745,650 19 % SBL 1,023,748 9 % 555,805 6 % Total loans held for investment 11,103,418 8,891,346 Net unearned income and deferred expenses (37,533 ) (43,936 ) Total loans held for investment, net 11,065,885 8,847,410 Total loans held for sale and investment 11,111,873 100 % 8,957,702 100 % Allowance for loan losses (147,574 ) (136,501 ) Bank loans, net $ 10,964,299 $ 8,821,201 |
Loan Purchases and Sales | The following table presents purchases and sales of any loans held for investment by portfolio segment: $ in thousands C&I CRE Residential mortgage Total Year ended September 30, 2017 Purchases $ 536,627 $ 63,542 $ 264,340 $ 864,509 Sales $ 341,196 $ — $ — $ 341,196 Year ended September 30, 2016 Purchases $ 457,503 $ 24,869 $ 371,710 $ 854,082 Sales $ 172,968 $ — $ — $ 172,968 Year ended September 30, 2015 Purchases $ 792,921 $ — $ 220,311 $ 1,013,232 Sales $ 108,983 $ — $ — $ 108,983 |
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: $ in thousands 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total loans held for investment (2) As of September 30, 2017: C&I loans $ — $ — $ — $ 5,221 $ 7,380,689 $ 7,385,910 CRE construction loans — — — — 112,681 112,681 CRE loans — — — — 3,106,290 3,106,290 Tax-exempt loans — — — — 1,017,791 1,017,791 Residential mortgage loans: First mortgage loans 1,853 — 1,853 33,718 3,086,701 3,122,272 Home equity loans/lines 248 — 248 31 26,179 26,458 SBL — — — — 2,386,697 2,386,697 Total loans held for investment, net $ 2,101 $ — $ 2,101 $ 38,970 $ 17,117,028 $ 17,158,099 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 (1) Includes $18 million and $54 million of nonaccrual loans at September 30, 2017 and 2016 , 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, 2017 2016 $ in thousands Gross recorded investment Unpaid principal balance Allowance for losses Gross recorded investment Unpaid principal balance Allowance for losses Impaired loans with allowance for loan losses: (1) C&I loans $ 5,221 $ 6,160 $ 1,963 $ 35,194 $ 35,872 $ 13,351 Residential - first mortgage loans 23,977 31,100 2,504 30,393 41,337 3,147 Total 29,198 37,260 4,467 65,587 77,209 16,498 Impaired loans without allowance for loan losses: (2) CRE loans — — — 4,230 11,611 — Residential - first mortgage loans 16,737 24,899 — 17,809 26,486 — Total 16,737 24,899 — 22,039 38,097 — Total impaired loans $ 45,935 $ 62,159 $ 4,467 $ 87,626 $ 115,306 $ 16,498 (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, $ in thousands 2017 2016 2015 Average impaired loan balance: C&I loans $ 17,540 $ 18,112 $ 11,311 CRE loans 694 4,474 14,694 Residential - first mortgage loans 43,845 51,554 59,049 Total $ 62,079 $ 74,140 $ 85,054 Interest income recognized: Residential - first mortgage loans $ 1,253 $ 1,413 $ 1,426 Total $ 1,253 $ 1,413 $ 1,426 |
Credit Quality of Held for Investment Loan Portfolio | The credit quality of RJ Bank ’s held for investment loan portfolio was as follows: $ in thousands Pass Special mention Substandard Doubtful Total September 30, 2017 C&I $ 7,232,777 $ 63,964 $ 89,169 $ — $ 7,385,910 CRE construction 112,681 — — — 112,681 CRE 3,048,847 57,315 128 — 3,106,290 Tax-exempt 1,017,791 — — — 1,017,791 Residential mortgage: First mortgage 3,068,290 8,467 45,515 — 3,122,272 Home equity 26,352 75 31 — 26,458 SBL 2,386,697 — — — 2,386,697 Total $ 16,893,435 $ 129,821 $ 134,843 $ — $ 17,158,099 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 |
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 $ in thousands C&I CRE construction CRE Tax-exempt Residential mortgage SBL Total Year ended September 30, 2017 Balance at beginning of year $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 Provision/(benefit) for loan losses 7,502 (101 ) (172 ) 2,281 3,944 (467 ) 12,987 Net (charge-offs)/recoveries: Charge-offs (26,088 ) — — — (918 ) — (27,006 ) Recoveries 340 — 5,013 — 1,001 — 6,354 Net (charge-offs)/recoveries (25,748 ) — 5,013 — 83 — (20,652 ) Foreign exchange translation adjustment 446 (92 ) 375 — — — 729 Balance at end of year $ 119,901 $ 1,421 $ 41,749 $ 6,381 $ 16,691 $ 4,299 $ 190,442 Year ended September 30, 2016 Balance at beginning of year $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 Provision/(benefit) for loan losses 23,051 (1,023 ) 5,997 (1,849 ) 191 1,800 28,167 Net (charge-offs)/recoveries: Charge-offs (2,956 ) — — — (1,470 ) — (4,426 ) Recoveries — — — — 1,417 — 1,417 Net (charge-offs)/recoveries (2,956 ) — — — (53 ) — (3,009 ) Foreign exchange translation adjustment (17 ) (70 ) 50 — — — (37 ) Balance at end of year $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 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 (1,388 ) 917 23,570 Net (charge-offs)/recoveries: Charge-offs (1,191 ) — — — (1,667 ) — (2,858 ) Recoveries 611 — 3,773 — 1,231 — 5,615 Net (charge-offs)/recoveries (580 ) — 3,773 — (436 ) — 2,757 Foreign exchange translation adjustment (1,067 ) (63 ) (514 ) — — — (1,644 ) Balance at end of year $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 |
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 (excluding any net unearned income and deferred expenses) and the related allowance for loan losses. Loans held for investment Allowance for loan losses Recorded investment $ in thousands Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total September 30, 2017 C&I $ 1,963 $ 117,938 $ 119,901 $ 5,221 $ 7,380,689 $ 7,385,910 CRE construction — 1,421 1,421 — 112,681 112,681 CRE — 41,749 41,749 — 3,106,290 3,106,290 Tax-exempt — 6,381 6,381 — 1,017,791 1,017,791 Residential mortgage 2,506 14,185 16,691 47,368 3,101,362 3,148,730 SBL — 4,299 4,299 — 2,386,697 2,386,697 Total $ 4,469 $ 185,973 $ 190,442 $ 52,589 $ 17,105,510 $ 17,158,099 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 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Assets | The following table details the components of Other assets: September 30, $ in thousands 2017 2016 Investments in company-owned life insurance $ 504,108 $ 417,137 Prepaid expenses 96,059 91,129 Investment in FHLB stock 52,187 38,813 Indemnification asset 26,160 35,325 Investment in FRB stock 24,706 24,706 Prepaid compensation arising from 3Macs acquisition 17,276 24,285 Guaranteed LIHTC Fund financing asset 15,786 20,543 Prepaid compensation associated with DBRSU awards 9,899 15,170 All other 34,244 51,727 Total other assets $ 780,425 $ 718,835 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities [Abstract] | |
VIEs Where We are the Primary Beneficiary - Aggregate Assets and Liabilities | The aggregate assets and liabilities of the VIE s we consolidate are provided in the table below. Aggregate assets and aggregate liabilities may differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE . $ in thousands Aggregate assets Aggregate liabilities September 30, 2017 Private Equity Interests $ 104,414 $ 3,851 LIHTC Fund in which RJ Bank is an investor member 57,719 1,055 Guaranteed LIHTC Fund 51,400 2,872 Other LIHTC Funds 7,418 2,544 Restricted Stock Trust Fund 12,122 12,122 Total $ 233,073 $ 22,444 September 30, 2016 Private Equity Interests $ 140,870 $ 4,888 LIHTC Fund in which RJ Bank is an investor member 55,550 240 Guaranteed LIHTC Fund 63,415 2,556 Restricted Stock Trust Fund 9,949 9,949 Total $ 269,784 $ 17,633 |
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 VIE s 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, $ in thousands 2017 2016 Assets: Cash and cash equivalents $ 2,052 $ 8,302 Assets segregated pursuant to regulations and other segregated assets 4,590 2,833 Other receivables 168 28,463 Intercompany receivables 454 475 Other investments 101,905 103,630 Investments in real estate partnerships held by consolidated variable interest entities 111,743 116,133 Trust fund investment in RJF common stock 12,120 9,948 Other assets 41 — Total assets $ 233,073 $ 269,784 Liabilities and equity: Other payables $ 9,667 $ 3,617 Intercompany payables 16,520 16,416 Total liabilities 26,187 20,033 RJF equity 101,445 117,023 Noncontrolling interests 105,441 132,728 Total equity 206,886 249,751 Total liabilities and equity $ 233,073 $ 269,784 |
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 VIE s 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, $ in thousands 2017 2016 Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss LIHTC Funds $ 5,372,367 $ 2,134,600 $ 60,959 $ 4,217,812 $ 1,429,085 $ 83,562 NMTC Funds 30,297 105 9 65,338 68 12 Private Equity Interests 10,485,611 174,354 73,457 14,286,950 132,334 70,336 Other 169,462 88,615 3,163 144,579 83,174 2,240 Total $ 16,057,737 $ 2,397,674 $ 137,588 $ 18,714,679 $ 1,644,661 $ 156,150 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | September 30, $ in thousands 2017 2016 Land $ 29,079 $ 24,150 Software, including development in progress 345,734 271,864 Buildings, leasehold and land improvements 324,452 260,800 Furniture, fixtures and equipment 224,418 200,947 Construction in process 12,056 3,711 Total property and equipment 935,739 761,472 Less: Accumulated depreciation (498,365 ) (440,015 ) Total property and equipment, net $ 437,374 $ 321,457 |
GOODWILL AND IDENTIFIABLE INT43
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Net Identifiable Intangible Asset Balances | The following are our goodwill and identifiable intangible asset balances as of the dates indicated: September 30, $ in thousands 2017 2016 Goodwill $ 410,723 $ 408,072 Identifiable intangible assets, net 82,460 94,974 Total goodwill and identifiable intangible assets, net $ 493,183 $ 503,046 |
Schedule of Goodwill Balance and Activity | The following summarizes our goodwill by segment, along with the balance and activity for the years indicated: Segment $ in thousands Private Client Group Capital Markets Total Fiscal Year 2017 Goodwill beginning of year $ 275,521 $ 132,551 $ 408,072 Additions — — — Foreign currency translation 1,192 1,459 2,651 Goodwill end of year $ 276,713 $ 134,010 $ 410,723 Fiscal Year 2016 Goodwill beginning of year $ 186,733 $ 120,902 $ 307,635 Additions 86,351 9,012 95,363 Foreign currency translation 2,437 2,637 5,074 Goodwill end of year $ 275,521 $ 132,551 $ 408,072 |
Schedule of Quantitative Analysis of Goodwill | The following summarizes certain key assumptions utilized in our quantitative analysis: Key assumptions Weight assigned to the outcome of: Segment Reporting unit Goodwill as of December 31, 2016 (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 $ 22,735 14.5 % 1.2x/12.9x 75 % 25 % Capital Markets: RJ Ltd. Capital Markets $ 18,997 14.5 % 1.2x/13.3x 75 % 25 % |
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 $ in thousands Private Client Group Capital Markets Asset Management Total Fiscal Year 2017 Net identifiable intangible assets beginning of year $ 52,936 $ 27,937 $ 14,101 $ 94,974 Amortization expense (6,001 ) (4,845 ) (2,004 ) (12,850 ) Foreign currency translation 91 (15 ) 260 336 Net identifiable intangible assets end of year $ 47,026 $ 23,077 $ 12,357 $ 82,460 Fiscal Year 2016 Net identifiable intangible assets beginning of year $ 18,182 $ 32,532 $ 17,137 $ 67,851 Additions 36,624 1,013 — 37,637 Amortization expense (1,870 ) (5,619 ) (2,226 ) (9,715 ) Foreign currency translation — 11 (810 ) (799 ) Net identifiable intangible assets end of year $ 52,936 $ 27,937 $ 14,101 $ 94,974 |
Schedule of Finite-Lived Intangible Assets by Major Class | The following summarizes our identifiable intangible assets by type: September 30, 2017 2016 $ in thousands Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 99,749 $ (31,098 ) $ 99,470 $ (22,895 ) Trade name 8,366 (2,076 ) 8,172 (499 ) Developed technology 1,630 (706 ) 12,630 (10,280 ) Intellectual property 542 (131 ) 516 (73 ) Non-compete agreements 3,336 (1,551 ) 3,314 (612 ) Seller relationship agreements 5,300 (901 ) 5,300 (69 ) Total $ 118,923 $ (36,463 ) $ 129,402 $ (34,428 ) |
Schedule of Projected Amortization Expense | The following table sets forth the projected amortization expense by fiscal year associated with our identifiable intangible assets: Fiscal year ended September 30, $ in thousands 2018 $ 11,056 2019 10,591 2020 9,812 2021 9,056 2022 8,436 Thereafter 33,509 $ 82,460 |
BANK DEPOSITS (Tables)
BANK DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
Summary of Bank Deposits | The following table presents a summary of bank deposits including the weighted-average rate, the calculation of which was based on the actual deposit balances at September 30, 2017 and 2016 , respectively. September 30, 2017 2016 $ in thousands Balance Weighted-average rate Balance Weighted-average rate Savings and money market accounts $ 17,391,091 0.14 % $ 13,935,089 0.05 % Certificates of deposit 314,685 1.60 % 315,236 1.55 % NOW accounts 5,197 0.01 % 4,958 0.01 % Demand deposits (non-interest-bearing) 21,389 — 7,264 — Total bank deposits $ 17,732,362 0.17 % $ 14,262,547 0.08 % |
Scheduled Maturities of Certificates of Deposit | Scheduled maturities of certificates of deposit are as follows: September 30, 2017 2016 $ in thousands Denominations greater than or equal to $100,000 Denominations less than $100,000 Denominations greater than or equal to $100,000 Denominations less than $100,000 Three months or less $ 8,704 $ 4,132 $ 14,252 $ 12,663 Over three through six months 4,692 3,894 14,191 9,750 Over six through twelve months 34,005 11,865 15,452 12,321 Over one through two years 38,713 20,019 32,816 11,060 Over two through three years 48,082 27,847 43,730 22,148 Over three through four years 21,819 12,761 58,425 28,863 Over four through five years 50,805 27,347 26,173 13,392 Total $ 206,820 $ 107,865 $ 205,039 $ 110,197 |
Interest Expense on Deposits | Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized as follows: Year ended September 30, $ in thousands 2017 2016 2015 Certificates of deposit $ 4,325 $ 5,402 $ 5,839 Money market, savings and NOW accounts 12,859 4,816 2,543 Total interest expense on deposits $ 17,184 $ 10,218 $ 8,382 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Other Borrowings | The following table details the components of other borrowings: September 30, $ in thousands 2017 2016 FHLB advances $ 875,000 $ 575,000 Unsecured lines of credit 350,000 — Secured lines of credit 260,000 — Mortgage notes payable 28,813 33,391 ClariVest revolving credit facility 199 267 Total other borrowings $ 1,514,012 $ 608,658 |
Schedule of Maturities of Other Borrowings | Our other borrowings as of September 30, 2017 , mature as follows based on their contractual terms: Fiscal year ended September 30, $ in thousands 2018 $ 615,045 2019 855,130 2020 5,430 2021 30,748 2022 6,084 Thereafter 1,575 Total $ 1,514,012 |
SENIOR NOTES PAYABLE (Tables)
SENIOR NOTES PAYABLE (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes Payable | The following summarizes our senior notes payable: September 30, $ in thousands 2017 2016 5.625% senior notes, due 2024 $ 250,000 $ 250,000 3.625% senior notes, due 2026 500,000 500,000 4.95% senior notes, due 2046 800,000 300,000 6.90% senior notes, due 2042 — 350,000 8.60% senior notes, due 2019 — 300,000 1,550,000 1,700,000 Unaccreted premium/(discount) 11,905 (1,601 ) Unamortized debt issuance costs (13,066 ) (17,812 ) Total senior notes payable $ 1,548,839 $ 1,680,587 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Allocation of Income Taxes | Total income tax provision/(benefit) was allocated as follows: Year ended September 30, $ in thousands 2017 2016 2015 Recorded in: Net income including noncontrolling interests $ 289,111 $ 271,293 $ 296,034 Equity, arising from cash flow hedges recorded through OCI 14,239 (7,252 ) (2,850 ) Equity, arising from cumulative currency translation adjustments and net investment hedges recorded through OCI (7,427 ) (3,525 ) 31,078 Equity, arising from available-for-sale securities recorded through OCI 856 (3,295 ) (2,246 ) Equity, arising from compensation expense for tax purposes which was (in excess of)/less than amounts recognized for financial reporting purposes — (35,121 ) 8,115 Total $ 296,779 $ 222,100 $ 330,131 |
Provision (Benefit) for Income Taxes | Our provision/(benefit) for income taxes consisted of the following: Year ended September 30, $ in thousands 2017 2016 2015 Current: Federal $ 255,555 $ 287,350 $ 266,359 State and local 37,553 32,101 48,130 Foreign 7,620 10,640 5,007 300,728 330,091 319,496 Deferred: Federal (11,316 ) (51,383 ) (20,567 ) State and local (959 ) (6,267 ) (5,127 ) Foreign 658 (1,148 ) 2,232 (11,617 ) (58,798 ) (23,462 ) Total provision for income tax $ 289,111 $ 271,293 $ 296,034 |
Reconciliation Between Income Tax Expense and the Amount Computed by Applying the Statutory Federal Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: Year ended September 30, 2017 2016 2015 Provision calculated at statutory rate 35.0 % 35.0 % 35.0 % State income tax, net of federal benefit 2.7 % 1.7 % 3.6 % Tax-exempt interest income (1.0 )% (0.9 )% (0.5 )% Excess tax benefits related to share-based compensation (1) (2.5 )% — — (Income)/losses associated with COLI which are not (subject to tax)/tax deductible (1.7 )% (1.1 )% 0.4 % Federal tax credits (1.6 )% (1.0 )% (0.9 )% Other, net 0.3 % 0.2 % (0.5 )% Total provision for income tax 31.2 % 33.9 % 37.1 % (1) Does not include excess state tax benefits related to share-based compensation, which had an impact of reducing our effective tax rate by (0.2)% for 2017. See Note 2 and Note 20 for more information regarding the adoption of new accounting guidance related to stock compensation. |
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 were as follows: Year ended September 30, $ in thousands 2017 2016 2015 U.S. $ 915,711 $ 765,421 $ 782,146 Foreign 9,635 35,222 16,028 Income excluding noncontrolling interests and before provision for income taxes $ 925,346 $ 800,643 $ 798,174 |
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, $ in thousands 2017 2016 Deferred tax assets: Deferred compensation $ 235,171 $ 192,397 Allowances for loan losses and reserves for unfunded commitments 74,909 78,552 Unrealized loss associated with foreign currency translations 1,928 22,184 Unrealized loss associated with available-for-sale securities 3,342 4,314 Accrued expenses 41,545 44,419 Other 13,665 24,897 Total gross deferred tax assets 370,560 366,763 Less: valuation allowance (9 ) (9 ) Total deferred tax assets 370,551 366,754 Deferred tax liabilities: Partnership investments (6,326 ) (8,518 ) Goodwill and other intangibles (38,364 ) (26,384 ) Undistributed earnings of foreign subsidiaries — (9,636 ) Other (12,375 ) (192 ) Total deferred tax liabilities (57,065 ) (44,730 ) Net deferred tax assets $ 313,486 $ 322,024 |
Aggregate Changes in Liability for Unrecognized Tax Benefits | The aggregate changes in the balances for uncertain tax positions were as follows: Year ended September 30, $ in thousands 2017 2016 2015 Balance for uncertain tax positions at beginning of year $ 22,173 $ 22,454 $ 15,804 Increases for tax positions related to the current year 3,238 6,496 4,954 Increases for tax positions related to prior years (1) 438 1,284 3,466 Decreases for tax positions related to prior years (717 ) (1,592 ) (204 ) Decreases due to lapsed statute of limitations (2,497 ) (1,447 ) (1,566 ) Decreases related to settlements (2,629 ) (5,022 ) — Balance for uncertain tax positions at end of year $ 20,006 $ 22,173 $ 22,454 (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. |
COMMITMENTS, CONTINGENCIES AN48
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Lease Agreement Maturities | Long-term lease agreements expire at various times through fiscal year 2031 . Minimum annual rental payments under such agreements for the succeeding five fiscal years are presented below: Fiscal year ended September 30, $ in thousands 2018 $ 96,756 2019 89,711 2020 78,164 2021 61,959 2022 42,846 Thereafter 79,491 Total $ 448,927 |
ACCUMULATED OTHER COMPREHENSI49
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Activity in Other Comprehensive Income (Loss) and Related Tax Effects | The activity in other comprehensive income/(loss), net of the respective tax effect, was as follows: Year ended September 30, $ in thousands 2017 2016 2015 Unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses $ 1,684 $ (5,576 ) $ (3,325 ) Unrealized gain/(loss) on currency translations, net of the impact of net investment hedges 15,618 2,179 (30,640 ) Unrealized gain/(loss) on cash flow hedges 23,232 (11,833 ) (4,650 ) Net other comprehensive income/(loss) $ 40,534 $ (15,230 ) $ (38,615 ) |
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 income/(loss): $ in thousands Net investment hedges Currency translations Sub-total: net investment hedges and currency translations Available-for-sale securities Cash flow hedges Total Year ended September 30, 2017 Accumulated other comprehensive income/(loss) as of the beginning of the year $ 86,482 $ (121,576 ) $ (35,094 ) $ (4,156 ) $ (16,483 ) $ (55,733 ) Other comprehensive income/(loss) before reclassifications and taxes (41,997 ) 43,541 1,544 443 31,843 33,830 Amounts reclassified from accumulated other comprehensive income/(loss), before tax — 6,647 6,647 2,097 5,628 14,372 Pre-tax net other comprehensive income/(loss) (41,997 ) 50,188 8,191 2,540 37,471 48,202 Income tax effect 15,716 (8,289 ) 7,427 (856 ) (14,239 ) (7,668 ) Net other comprehensive income/(loss) for the year, net of tax (26,281 ) 41,899 15,618 1,684 23,232 40,534 Accumulated other comprehensive income/(loss) as of the end of the year $ 60,201 $ (79,677 ) $ (19,476 ) $ (2,472 ) $ 6,749 $ (15,199 ) 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 income/(loss) 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 net other comprehensive income/(loss) (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 income/(loss) 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 the end of the year $ 86,482 $ (121,576 ) $ (35,094 ) $ (4,156 ) $ (16,483 ) $ (55,733 ) |
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, for the years ended September 30, 2017 and 2016 : Accumulated other comprehensive income/(loss) components $ in thousands Increase/(decrease) in amounts reclassified from accumulated other comprehensive income/(loss) Affected line items in income statement Year ended September 30, 2017 Available-for-sale securities: Auction rate securities $ 1,458 Other revenue RJ Bank available-for-sale securities 639 Other revenue RJ Bank cash flow hedges 5,628 Interest expense Currency translations 6,647 Other expense 14,372 Total before tax Income tax effect (5,460 ) Provision for income taxes Total reclassifications for the year $ 8,912 Net of tax Year ended September 30, 2016 Available-for-sale securities: Auction rate securities $ 87 Other revenue RJ Bank available-for-sale securities 273 Other revenue RJ Bank cash flow hedges 6,450 Interest expense 6,810 Total before tax Income tax effect (2,590 ) Provision for income taxes Total reclassifications for the year $ 4,220 Net of tax |
INTEREST INCOME AND INTEREST 50
INTEREST INCOME AND INTEREST EXPENSE (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, $ in thousands 2017 2016 2015 Interest income: Margin balances $ 85,699 $ 68,712 $ 67,573 Assets segregated pursuant to regulations and other segregated assets 37,270 22,287 13,792 Bank loans, net of unearned income 572,171 487,366 405,578 Available-for-sale securities 27,946 7,596 5,100 Trading instruments 21,068 19,362 19,450 Securities loaned 14,049 8,777 12,036 Loans to financial advisors 13,333 8,207 7,056 Corporate cash and all other 30,590 18,090 12,697 Total interest income $ 802,126 $ 640,397 $ 543,282 Interest expense: Brokerage client liabilities $ 4,884 $ 2,084 $ 940 Retail bank deposits 17,184 10,218 8,382 Trading instruments sold but not yet purchased 6,138 5,035 4,503 Securities borrowed 6,690 3,174 5,237 Borrowed funds 16,559 12,957 6,079 Senior notes 94,665 78,533 76,088 Other 7,658 4,055 4,845 Total interest expense 153,778 116,056 106,074 Net interest income 648,348 524,341 437,208 Bank loan loss provision (12,987 ) (28,167 ) (23,570 ) Net interest income after bank loan loss provision $ 635,361 $ 496,174 $ 413,638 |
SHARE-BASED AND OTHER COMPENS51
SHARE-BASED AND OTHER COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-Average Assumptions Used for Stock Option Grants | The fair value of each fixed employee 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, 2017 , 2016 and 2015 : Year ended September 30, 2017 2016 2015 Dividend yield 1.03 % 1.41 % 1.30 % Expected volatility 30.91 % 28.85 % 29.55 % Risk-free interest rate 1.81 % 1.65 % 1.66 % Expected lives (in years) 5.36 5.37 5.48 |
Summary of Option Activity | A summary of option activity for grants to employees for the fiscal year ended September 30, 2017 is presented below: Options for shares (in thousands) Weighted- average exercise price (per share) Weighted- average remaining contractual term (in years) Aggregate intrinsic value ($ in thousands) Outstanding at October 1, 2016 3,710 $ 44.88 Granted 224 $ 72.09 Exercised (1,051 ) $ 32.22 Forfeited (47 ) $ 51.62 Outstanding at September 30, 2017 2,836 $ 51.63 3.58 $ 92,762 Exercisable at September 30, 2017 451 $ 41.62 2.37 $ 19,246 |
Option Activity, Additional Disclosures | The following stock option activity occurred under the 2012 Plan for grants to employees: Year ended September 30, $ in thousands, except per option amounts 2017 2016 2015 Weighted-average grant date fair value per option $ 19.96 $ 13.96 $ 14.36 Total intrinsic value of stock options exercised $ 42,178 $ 16,273 $ 29,574 Total grant date fair value of stock options vested $ 10,768 $ 7,690 $ 10,483 |
Pre-Tax Expense Not Yet Recognized for Stock Options Awards | Pre-tax expense not yet recognized for stock option awards granted to employees and independent contractor financial advisors, net of estimated forfeitures, and the remaining period over which the expense will be recognized as of September 30, 2017 , are presented below: Pre-tax expense not yet recognized (in thousands) Remaining weighted-average amortization period (in years) Employees $ 14,655 2.5 Independent contractor financial advisors $ 2,904 3.0 |
Employee and Nonemployee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expense and Income Tax Benefits Related to Awards | Expense and income tax benefit related to our stock options awards granted to employees and independent contractor financial advisors is presented below: Year ended September 30, $ in thousands 2017 2016 2015 Total share-based expense $ 13,597 $ 11,648 $ 10,196 Income tax benefit related to share-based expense $ 1,783 $ 1,181 $ 821 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Activity | The following restricted equity award activity which includes restricted stock and RSUs for grants to employees and members of our Board of Directors occurred during the fiscal year ended September 30, 2017 : Shares/Units (in thousands) Weighted- average grant date fair value (per share) Non-vested at October 1, 2016 4,807 $ 47.71 Granted 1,637 $ 72.39 Vested (1,587 ) $ 38.68 Forfeited (113 ) $ 60.11 Non-vested at September 30, 2017 4,744 $ 58.94 |
Expense and Income Tax Benefits Related to Awards | Expense and income tax benefits related to our restricted equity awards granted to our employees and members of our Board of Directors are presented below: Year ended September 30, $ in thousands 2017 2016 2015 Total share-based expense $ 78,624 $ 62,674 $ 57,716 Income tax benefits related to share-based expense $ 27,658 $ 21,979 $ 20,516 |
Restricted Stock | Deutsche WM | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expense and Income Tax Benefits Related to Awards | The net impact of the DBRSU s in our Consolidated Statements of Income and Comprehensive Income, including the related income tax effects, is presented below: Year ended September 30, $ in thousands 2017 2016 Amortization of DBRSU prepaid compensation asset $ 5,270 $ 355 Increase/(decrease) in fair value of derivative liability 8,031 (2,457 ) Net expense/(gain) before tax $ 13,301 $ (2,102 ) Income tax expense $ 4,963 $ 799 |
Deutche Bank Restricted Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Activity | The following table details the DBRSU activity for the year ended September 30, 2017 : Units (in thousands) Non-vested DBRSUs at October 1, 2016 1,358 DB rights offering 163 Forfeited (28 ) Non-vested DBRSUs at September 30, 2017 1,493 |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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 CET1 , Tier 1 capital, Total capital, 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 $ in thousands Amount Ratio Amount Ratio Amount Ratio RJF as of September 30, 2017: CET1 $ 5,081,335 23.0 % $ 994,950 4.5 % $ 1,437,150 6.5 % Tier 1 capital $ 5,081,335 23.0 % $ 1,326,600 6.0 % $ 1,768,800 8.0 % Total capital $ 5,293,331 23.9 % $ 1,768,800 8.0 % $ 2,211,000 10.0 % Tier 1 leverage $ 5,081,335 15.0 % $ 1,359,168 4.0 % $ 1,698,960 5.0 % RJF as of September 30, 2016: CET1 $ 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 % |
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 CET1 , Tier 1 capital, Total capital, 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 $ in thousands Amount Ratio Amount Ratio Amount Ratio RJ Bank as of September 30, 2017: CET1 $ 1,821,306 12.5 % $ 654,901 4.5 % $ 945,968 6.5 % Tier 1 capital $ 1,821,306 12.5 % $ 873,201 6.0 % $ 1,164,268 8.0 % Total capital $ 2,003,461 13.8 % $ 1,164,268 8.0 % $ 1,455,335 10.0 % Tier 1 leverage $ 1,821,306 8.9 % $ 816,304 4.0 % $ 1,020,379 5.0 % RJ Bank as of September 30, 2016: CET1 $ 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 % |
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 following table presents the net capital position of RJ&A : September 30, $ in thousands 2017 2016 Raymond James & Associates, Inc.: (Alternative Method elected) Net capital as a percent of aggregate debit items 21.37 % 19.61 % Net capital $ 589,420 $ 512,594 Less: required net capital (55,164 ) (52,287 ) Excess net capital $ 534,256 $ 460,307 |
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 following table presents the net capital position of RJFS : September 30, $ in thousands 2017 2016 Raymond James Financial Services, Inc.: (Alternative Method elected) Net capital $ 34,488 $ 27,013 Less: required net capital (250 ) (250 ) Excess net capital $ 34,238 $ 26,763 |
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 following table presents the risk adjusted capital of RJ Ltd. (in Canadian dollars): September 30, $ in thousands 2017 2016 Raymond James Ltd.: Risk adjusted capital before minimum $ 108,985 $ 77,110 Less: required minimum capital (250 ) (250 ) Risk adjusted capital $ 108,735 $ 76,860 |
FINANCIAL INSTRUMENTS WITH OF53
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | |
Summary of Commitments to Extend Credit and Other Credit-Related Off-Balance Sheet Financial Instruments Outstanding | The following table presents RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding: September 30, $ in thousands 2017 2016 Standby letters of credit $ 39,670 $ 29,686 Open-end consumer lines of credit (primarily SBL) $ 5,323,003 $ 3,616,933 Commercial lines of credit $ 1,673,272 $ 1,430,630 Unfunded loan commitments $ 386,950 $ 354,556 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, $ in thousands, except per share amounts 2017 2016 2015 Income for basic earnings per common share: Net income attributable to RJF $ 636,235 $ 529,350 $ 502,140 Less allocation of earnings and dividends to participating securities (1,376 ) (1,256 ) (1,610 ) Net income attributable to RJF common shareholders $ 634,859 $ 528,094 $ 500,530 Income for diluted earnings per common share: Net income attributable to RJF $ 636,235 $ 529,350 $ 502,140 Less allocation of earnings and dividends to participating securities (1,350 ) (1,236 ) (1,580 ) Net income attributable to RJF common shareholders $ 634,885 $ 528,114 $ 500,560 Common shares: Average common shares in basic computation 143,275 141,773 142,548 Dilutive effect of outstanding stock options and certain restricted stock units 3,372 2,740 3,391 Average common shares used in diluted computation 146,647 144,513 145,939 Earnings per common share: Basic $ 4.43 $ 3.72 $ 3.51 Diluted $ 4.33 $ 3.65 $ 3.43 Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive 1,657 3,255 2,849 |
Dividends per Common Share Declared and Paid | Dividends per common share declared and paid are as follows: Year ended September 30, 2017 2016 2015 Dividends per common share - declared $ 0.88 $ 0.80 $ 0.72 Dividends per common share - paid $ 0.86 $ 0.78 $ 0.70 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Information Concerning Operations on a Segment Basis | The following table presents information concerning operations in these segments of business: Year ended September 30, $ in thousands 2017 2016 2015 Revenues: Private Client Group $ 4,437,588 $ 3,626,718 $ 3,519,558 Capital Markets 1,034,235 1,017,151 976,580 Asset Management 487,735 404,421 392,378 RJ Bank 627,845 517,243 425,988 Other 65,498 46,291 66,967 Intersegment eliminations (128,026 ) (90,704 ) (71,791 ) Total revenues $ 6,524,875 $ 5,521,120 $ 5,309,680 Income/(loss) excluding noncontrolling interests and before provision for income taxes: Private Client Group $ 372,950 $ 340,564 $ 342,243 Capital Markets 141,236 139,173 107,009 Asset Management 171,736 132,158 135,050 RJ Bank 409,303 337,296 278,721 Other (169,879 ) (148,548 ) (64,849 ) Pre-tax income excluding noncontrolling interests 925,346 800,643 798,174 Net income attributable to noncontrolling interests 2,632 11,301 16,438 Income including noncontrolling interests and before provision for income taxes $ 927,978 $ 811,944 $ 814,612 No individual client accounted for more than ten percent of total revenues in any of the years presented. Year ended September 30, $ in thousands 2017 2016 2015 Net interest income/(expense): Private Client Group $ 136,756 $ 97,042 $ 88,842 Capital Markets 6,543 9,432 9,589 Asset Management 623 183 127 RJ Bank 574,796 478,690 403,578 Other (70,370 ) (61,006 ) (64,928 ) Net interest income $ 648,348 $ 524,341 $ 437,208 The following table presents our total assets on a segment basis: September 30, $ in thousands 2017 2016 Total assets: Private Client Group $ 9,967,320 $ 10,317,681 Capital Markets 2,396,033 2,957,319 Asset Management 151,111 133,190 RJ Bank 20,611,898 16,613,391 Other 1,757,094 1,465,395 Total $ 34,883,456 $ 31,486,976 |
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, $ in thousands 2017 2016 2015 Revenues: United States $ 6,057,971 $ 5,119,536 $ 4,912,820 Canada 354,685 278,652 279,200 Europe 107,831 85,718 85,289 Other 4,388 37,214 32,371 Total $ 6,524,875 $ 5,521,120 $ 5,309,680 Pre-tax income/(loss) excluding noncontrolling interests: United States $ 919,324 $ 778,351 $ 784,517 Canada 14,138 20,243 17,770 Europe (3,577 ) (3,791 ) (6,852 ) Other (4,539 ) 5,840 2,739 Total $ 925,346 $ 800,643 $ 798,174 Our total assets, classified by major geographic area in which they are held, are presented below: September 30, $ in thousands 2017 2016 Total assets: United States $ 32,200,852 $ 29,112,182 Canada 2,592,480 2,275,056 Europe 81,090 61,067 Other 9,034 38,671 Total $ 34,883,456 $ 31,486,976 |
CONDENSED FINANCIAL INFORMATI56
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, $ in thousands 2017 2016 Assets: Cash and cash equivalents $ 528,397 $ 371,978 Assets segregated pursuant to regulations 40,145 — Intercompany receivables from subsidiaries: Bank subsidiary 319 — Non-bank subsidiaries (1) 1,166,765 1,228,046 Investments in consolidated subsidiaries: Bank subsidiary 1,823,342 1,658,663 Non-bank subsidiaries 3,448,191 3,121,410 Property and equipment, net 14,457 14,891 Goodwill and identifiable intangible assets, net 31,954 31,954 Other assets 624,452 611,667 Total assets $ 7,678,022 $ 7,038,609 Liabilities and equity: Other payables $ 80,576 $ 81,340 Intercompany payables to subsidiaries: Bank subsidiary — 230 Non-bank subsidiaries 52,699 13,892 Accrued compensation and benefits 414,195 346,015 Senior notes payable 1,548,839 1,680,587 Total liabilities 2,096,309 2,122,064 Equity 5,581,713 4,916,545 Total liabilities and equity $ 7,678,022 $ 7,038,609 (1) Of the total receivable from non-bank subsidiaries, $783 million and $457 million at September 30, 2017 and 2016 , respectively, was 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, $ in thousands 2017 2016 2015 Revenues: Dividends from non-bank subsidiaries $ 183,347 $ 248,020 $ 230,853 Dividends from bank subsidiary 125,000 75,000 — Interest from subsidiaries 16,404 8,999 6,886 Interest 1,838 807 843 Other 25,323 4,654 3,823 Total revenues 351,912 337,480 242,405 Interest expense (94,921 ) (78,089 ) (76,233 ) Net revenues 256,991 259,391 166,172 Non-interest expenses: Compensation and benefits 61,765 54,664 46,758 Communications and information processing 8,741 6,330 5,999 Occupancy and equipment costs 677 636 800 Business development 18,773 18,364 17,581 Losses on extinguishment of debt 45,746 — — Other 14,707 9,792 10,365 Intercompany allocations and charges (30,643 ) (40,424 ) (46,898 ) Total non-interest expenses 119,766 49,362 34,605 Income before income tax benefit and equity in undistributed net income of subsidiaries 137,225 210,029 131,567 Income tax benefit (85,529 ) (64,658 ) (42,688 ) Income before equity in undistributed net income of subsidiaries 222,754 274,687 174,255 Equity in undistributed net income of subsidiaries 413,481 254,663 327,885 Net income $ 636,235 $ 529,350 $ 502,140 |
Condensed Statement of Cash Flows | The following table presents the Parent’s statements of cash flows: Year ended September 30, $ in thousands 2017 2016 2015 Cash flows from operating activities: Net income $ 636,235 $ 529,350 $ 502,140 Adjustments to reconcile net income to net cash provided by operating activities: Gain on investments (14,588 ) (11,538 ) (5,586 ) (Gain)/loss on company-owned life insurance (47,920 ) (25,642 ) 8,960 Equity in undistributed net income of subsidiaries (413,481 ) (254,663 ) (327,885 ) Loss on extinguishment of senior notes payable 45,746 — — Other 97,616 73,798 60,634 Net change in: Assets segregated pursuant to regulations (40,145 ) — — Intercompany receivables 178,631 19,641 (102,866 ) Other 80,561 97,067 51,442 Intercompany payables 38,577 (115,657 ) 20,338 Other payables (764 ) 2,396 (49 ) Accrued compensation and benefits 68,180 58,520 2,911 Net cash provided by operating activities 628,648 373,272 210,039 Cash flows from investing activities: (Investments in)/distributions from subsidiaries, net (36,520 ) (637,689 ) (9,493 ) Advances to subsidiaries, net (117,670 ) (394,383 ) (40,120 ) Proceeds from sales/(purchases) of investments, net 4,836 24,609 (4,601 ) Purchase of investments in company-owned life insurance, net (40,661 ) (49,488 ) (44,917 ) Net cash used in investing activities (190,015 ) (1,056,951 ) (99,131 ) Cash flows from financing activities: Proceeds from senior note issuances, net of debt issuance costs paid 508,473 792,221 — Extinguishment of senior notes payable (650,000 ) (250,000 ) — Premium paid on extinguishment of senior notes payable (36,892 ) — — Exercise of stock options and employee stock purchases 57,462 43,331 47,964 Purchase of treasury stock (34,055 ) (162,502 ) (88,542 ) Dividends on common stock (127,202 ) (113,435 ) (103,143 ) Net cash provided by/(used in) financing activities (282,214 ) 309,615 (143,721 ) Net increase/(decrease) in cash and cash equivalents 156,419 (374,064 ) (32,813 ) Cash and cash equivalents at beginning of year 371,978 746,042 778,855 Cash and cash equivalents at end of year $ 528,397 $ 371,978 $ 746,042 Supplemental disclosures of cash flow information: Cash paid for interest $ 98,554 $ 74,568 $ 76,297 Cash paid for income taxes, net $ 92,568 $ 27,397 $ 32,383 Supplemental disclosures of noncash activity: Investments in subsidiaries, net $ 24,352 $ 781 $ 507 Losses on extinguishment of debt $ 8,854 $ — $ — |
ORGANIZATION AND BASIS OF PRE57
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Sep. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent ownership of subsidiaries that are consolidated | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN58
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017USD ($)subsidiaryindependent_pricing_servicerrisk_factorsegmentinstitutioninvestorcomponentFund | Sep. 30, 2016USD ($) | |
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 | |
Other investments [Abstract] | ||
Requisite service period | 5 years | |
Brokerage client receivables, loans to financial advisors and allowance for doubtful accounts [Abstract] | ||
Allowance for doubtful Brokerage client receivables | $ 1,000 | $ 1,000 |
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 | $ 22,000 | 13,000 |
Loans associated with financial advisors no longer affiliated with the entity, allowance | $ 8,000 | 5,000 |
Bank loans and allowances for losses [Abstract] | ||
Number of loan portfolio segments | segment | 6 | |
Minimum past due for loans placed on nonaccrual status (or more) | 90 days | |
Period of satisfactory performance for loans to be returned to accrual status (in months) | 6 months | |
Number of components comprising the allowance for loan loss | component | 2 | |
Number of aspects of risk factors analyzed | risk_factor | 2 | |
Minimum amount of Shared National Credit (SNC) loan syndications | $ 20,000 | |
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 | |
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 | 7 years | |
Number of investor members in new market tax credit | investor | 1 | |
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||
Assets | $ (34,883,456) | (31,486,976) |
Liabilities | (29,190,105) | (26,424,000) |
Noncontrolling interests | 111,638 | 146,431 |
Retained earnings | $ (4,340,054) | (3,834,781) |
Cumulative-Effect Adjustment, Deconsolidation of Variable Interest Entity | ||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||
Assets | 107,000 | |
Liabilities | 20,000 | |
Noncontrolling interests | 89,000 | |
Retained earnings | $ 2,000 |
SUMMARY OF SIGNIFICANT ACCOUN59
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2017 | |
Minimum | Software, including development in progress | |
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, including development in progress | |
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) CAD in Billions, $ in Billions | Apr. 30, 2017 | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($)financial_advisor | Aug. 31, 2016CADfinancial_advisor |
Scout Investments, Inc. | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, percentage of voting interest acquired | 100.00% | |||
3Macs | ||||
Business Acquisition [Line Items] | ||||
Number of financial advisors to be acquired | financial_advisor | 70 | |||
Client assets to be acquired | CAD | CAD 6 | |||
Deutsche WM | ||||
Business Acquisition [Line Items] | ||||
Number of financial advisors to be acquired | financial_advisor | 190 | |||
Client assets to be acquired | $ | $ 46 | |||
Scout Investments, Inc. | ||||
Business Acquisition [Line Items] | ||||
Assets under management and advisement | $ | $ 27 |
ACQUISITIONS, Acquisition Expen
ACQUISITIONS, Acquisition Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | $ 17,995 | $ 40,706 |
Severance | ||
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | 5,859 | 866 |
Acquisition and integration-related incentive compensation costs | ||
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | 5,474 | 0 |
Early termination costs of assumed contracts | ||
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | 1,329 | 0 |
Information systems integration costs | ||
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | 1,380 | 21,752 |
Legal and regulatory | ||
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | 3,192 | 8,334 |
Post-closing purchase price contingency | ||
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | (3,345) | 0 |
DBRSU obligation and related hedge | ||
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | 770 | 4,837 |
All other | ||
Business Acquisition [Line Items] | ||
Total acquisition-related expenses | $ 3,336 | $ 4,917 |
FAIR VALUE, Recurring and Nonre
FAIR VALUE, Recurring and Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Assets, Fair Value Disclosure [Abstract] | ||
Total trading instruments | $ 564,263 | $ 713,550 |
Available-for-sale securities | 2,188,282 | 859,398 |
Net amounts presented in the Statements of Financial Condition | 318,775 | 480,106 |
Private equity investments | 198,779 | 194,634 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total trading instruments sold but not yet purchased | 221,449 | 320,103 |
Derivative liability | 356,964 | 475,608 |
Transfers of Financial Instruments into (out of) Level 1 and 2 [Abstract] | ||
Fair value instrument, transfer from level 1 to level 2 | 4,000 | 3,000 |
Fair value instrument, transfer from level 2 to level 1 | 1,000 | 1,000 |
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 | 23,001 | 196,109 |
Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 16,836,745 | 14,925,802 |
Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 510,666 | 655,737 |
Equity securities | 16,479 | 16,029 |
Brokered certificates of deposit | 31,492 | 35,206 |
Other | 5,626 | 6,578 |
Total trading instruments | 564,263 | 713,550 |
Available-for-sale securities | 2,188,282 | 859,398 |
Netting adjustment | (55,728) | (107,539) |
Net amounts presented in the Statements of Financial Condition | 318,775 | 480,106 |
Other investments | 220,980 | 326,353 |
Total assets at fair value on a recurring basis | 3,491,079 | 2,574,041 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 211,989 | 301,721 |
Equity securities | 9,460 | 18,382 |
Total trading instruments sold but not yet purchased | 221,449 | 320,103 |
Netting adjustment | (59,410) | (142,859) |
Derivative liability | 356,964 | 475,608 |
Total liabilities at fair value on a recurring basis | 578,413 | 795,711 |
Adjustments to fair value of nonrecurring fair value measurements [Abstract] | ||
Other investments with obligations to perform under deferred compensation plan | 44,000 | 77,000 |
Recurring | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 304 | 1,161 |
Recurring | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 36,558 | 31,074 |
Recurring | Government obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 167,622 | 266,682 |
Recurring | Agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 2,477 | 2,804 |
Recurring | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 5,028 | |
Recurring | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 221,967 | 274,163 |
Recurring | Corporate obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 90,938 | 132,885 |
Recurring | Government and agency obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 35,331 | 49,598 |
Recurring | Agency MBS and CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 133,983 | 164,663 |
Available-for-sale securities | 2,081,079 | 682,297 |
Recurring | Non-agency CMOs and ABS | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 28,447 | 34,428 |
Recurring | Non-agency CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 50,519 | |
Recurring | Other securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 1,032 | 1,417 |
Recurring | ARS – municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 25,147 | |
Recurring | ARS - preferred securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 106,171 | 100,018 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 16,711 | 17,305 |
Equity securities | 16,090 | 14,529 |
Brokered certificates of deposit | 0 | 0 |
Other | 32 | 555 |
Total trading instruments | 32,833 | 32,389 |
Available-for-sale securities | 1,032 | 1,417 |
Derivative contracts asset, gross | 0 | 0 |
Other investments | 220,312 | 325,655 |
Total assets at fair value on a recurring basis | 254,177 | 359,461 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 171,689 | 271,930 |
Equity securities | 8,118 | 18,382 |
Total trading instruments sold but not yet purchased | 179,807 | 290,312 |
Derivative contracts liability, gross | 0 | 0 |
Total liabilities at fair value on a recurring basis | 179,807 | 290,312 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 304 | 1,161 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1,286 | 1,283 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Government obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 167,622 | 266,682 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 2,477 | 2,804 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 83 | 480 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Corporate obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 9,361 | 10,000 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Government and agency obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 6,354 | 6,412 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Agency MBS and CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 913 | 413 |
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 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Other securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 1,032 | 1,417 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | ARS – municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 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 | Significant other observable inputs (Level 2) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 493,950 | 638,425 |
Equity securities | 389 | 1,500 |
Brokered certificates of deposit | 31,492 | 35,206 |
Other | 0 | 3 |
Total trading instruments | 525,831 | 675,134 |
Available-for-sale securities | 2,081,079 | 732,816 |
Derivative contracts asset, gross | 374,503 | 587,645 |
Other investments | 332 | 257 |
Total assets at fair value on a recurring basis | 2,981,745 | 1,995,852 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 40,300 | 29,791 |
Equity securities | 1,342 | 0 |
Total trading instruments sold but not yet purchased | 41,642 | 29,791 |
Derivative contracts liability, gross | 416,374 | 618,467 |
Total liabilities at fair value on a recurring basis | 458,016 | 648,258 |
Recurring | Significant other observable inputs (Level 2) | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Significant other observable inputs (Level 2) | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 35,272 | 29,791 |
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) | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 5,028 | |
Recurring | Significant other observable inputs (Level 2) | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 221,884 | 273,683 |
Recurring | Significant other observable inputs (Level 2) | Corporate obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 81,577 | 122,885 |
Recurring | Significant other observable inputs (Level 2) | Government and agency obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 28,977 | 43,186 |
Recurring | Significant other observable inputs (Level 2) | Agency MBS and CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 133,070 | 164,250 |
Available-for-sale securities | 2,081,079 | 682,297 |
Recurring | Significant other observable inputs (Level 2) | Non-agency CMOs and ABS | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 28,442 | 34,421 |
Recurring | Significant other observable inputs (Level 2) | Non-agency CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 50,519 | |
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 – municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 0 | |
Recurring | Significant other observable inputs (Level 2) | ARS - preferred securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 5 | 7 |
Equity securities | 0 | 0 |
Brokered certificates of deposit | 0 | 0 |
Other | 5,594 | 6,020 |
Total trading instruments | 5,599 | 6,027 |
Available-for-sale securities | 106,171 | 125,165 |
Derivative contracts asset, gross | 0 | 0 |
Other investments | 336 | 441 |
Total assets at fair value on a recurring basis | 200,991 | 214,798 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Total trading instruments sold but not yet purchased | 0 | 0 |
Derivative contracts liability, gross | 0 | 0 |
Total liabilities at fair value on a recurring basis | 0 | 0 |
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) | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | |
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 | 0 |
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 | 5 | 7 |
Recurring | Significant unobservable inputs (Level 3) | Non-agency CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 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 – municipal obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 25,147 | |
Recurring | Significant unobservable inputs (Level 3) | ARS - preferred securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 106,171 | 100,018 |
Nonrecurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 52,753 | 89,305 |
Other Assets: OREO | 880 | 679 |
Total assets at fair value on a nonrecurring basis | 53,633 | 89,984 |
Nonrecurring | Impaired loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 41,468 | 71,128 |
Nonrecurring | Loans held for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 11,285 | 18,177 |
Nonrecurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 0 | 0 |
Other Assets: 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 | 28,759 | 41,323 |
Other Assets: OREO | 880 | 679 |
Total assets at fair value on a nonrecurring basis | 29,639 | 42,002 |
Nonrecurring | Significant other observable inputs (Level 2) | Impaired loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 17,474 | 23,146 |
Nonrecurring | Significant other observable inputs (Level 2) | Loans held for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 11,285 | 18,177 |
Nonrecurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 23,994 | 47,982 |
Other Assets: OREO | 0 | 0 |
Total assets at fair value on a nonrecurring basis | 23,994 | 47,982 |
Nonrecurring | Significant unobservable inputs (Level 3) | Impaired loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 23,994 | 47,982 |
Nonrecurring | Significant unobservable inputs (Level 3) | Loans held for sale | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 0 | 0 |
Interest rate contracts: | Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Matched book | 288,035 | 422,196 |
Netting adjustment | (55,728) | (107,539) |
Net amounts presented in the Statements of Financial Condition | 30,708 | 55,894 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 288,035 | 422,196 |
Netting adjustment | (59,410) | (142,859) |
Derivative liability | 42,483 | 35,643 |
Interest rate contracts: | Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative contracts asset, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative contracts liability, gross | 0 | 0 |
Interest rate contracts: | Recurring | Significant other observable inputs (Level 2) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Matched book | 288,035 | 422,196 |
Derivative contracts asset, gross | 86,436 | 163,433 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 288,035 | 422,196 |
Derivative contracts liability, gross | 101,893 | 178,502 |
Interest rate contracts: | Recurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative contracts asset, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative contracts liability, gross | 0 | 0 |
Foreign exchange contracts | Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Net amounts presented in the Statements of Financial Condition | 32 | 2,016 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 646 | |
Foreign exchange contracts | Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative contracts asset, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | |
Foreign exchange contracts | Recurring | Significant other observable inputs (Level 2) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative contracts asset, gross | 32 | 2,016 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 646 | |
Foreign exchange contracts | Recurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative contracts asset, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | |
DBRSU obligation (equity) | Recurring | ||
Adjustments to fair value of nonrecurring fair value measurements [Abstract] | ||
Other investments, share based compensation economic hedge | 19,000 | 12,000 |
DBRSU obligation (equity) | Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | 0 |
DBRSU obligation (equity) | Recurring | Significant other observable inputs (Level 2) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 25,800 | 17,769 |
DBRSU obligation (equity) | Recurring | Significant unobservable inputs (Level 3) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | 0 |
Derivative liability | 25,800 | 17,769 |
Private equity investments | Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Private equity investments measured at fair value | 88,885 | 83,165 |
Private equity investments measured at NAV | 109,894 | 111,469 |
Private equity investments | 198,779 | 194,634 |
Private equity investments | Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Private equity investments measured at fair value | 0 | 0 |
Private equity investments | 0 | 0 |
Private equity investments | Recurring | Significant other observable inputs (Level 2) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Private equity investments measured at fair value | 0 | 0 |
Private equity investments | 0 | 0 |
Private equity investments | Recurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Private equity investments measured at fair value | 88,885 | 83,165 |
Private equity investments | $ 88,885 | $ 83,165 |
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, 2017 | Sep. 30, 2016 | |
Percentage of instruments measured at fair value on a recurring basis [Abstract] | ||
Instruments measured at fair value, percentage of assets (in hundredths) | 10.00% | 8.00% |
Instruments measured at fair value, percentage of liabilities (in hundredths) | 2.00% | 3.00% |
Instruments measured at fair value, Level 3, percentage of assets (in hundredths) | 6.00% | 8.00% |
Trading instruments | Corporate obligations | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | $ 0 | $ 156 |
Total gains/(losses) for the year: | ||
Included in earnings | (137) | |
Included in other comprehensive income | 0 | |
Purchases and contributions | 75 | |
Sales | (94) | |
Redemptions by issuer | 0 | |
Distributions | 0 | |
Transfers: | ||
Into Level 3 | 0 | |
Out of Level 3 | 0 | |
Fair value end of year | 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 | |
Trading instruments | Non-agency CMOs and ABS | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 7 | 9 |
Total gains/(losses) for the year: | ||
Included in earnings | 1 | 0 |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 0 | 0 |
Sales | 0 | 0 |
Redemptions by issuer | 0 | |
Distributions | (3) | (2) |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 5 | 7 |
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 | 2 |
Trading instruments | Other | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 6,020 | 6,961 |
Total gains/(losses) for the year: | ||
Included in earnings | (2,568) | (3,048) |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 67,316 | 61,887 |
Sales | (65,174) | (59,780) |
Redemptions by issuer | 0 | |
Distributions | 0 | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 5,594 | 6,020 |
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 | (1,626) | (2,752) |
Available-for-sale securities | ARS – municipal obligations | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 25,147 | 28,015 |
Total gains/(losses) for the year: | ||
Included in earnings | 641 | 133 |
Included in other comprehensive income | 2,344 | (1,393) |
Purchases and contributions | 0 | 0 |
Sales | (28,132) | (1,583) |
Redemptions by issuer | (25) | |
Distributions | 0 | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 0 | 25,147 |
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 | (1,348) |
Available-for-sale securities | ARS - preferred securities | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 100,018 | 110,749 |
Total gains/(losses) for the year: | ||
Included in earnings | (84) | 136 |
Included in other comprehensive income | 7,705 | (9,656) |
Purchases and contributions | 0 | 0 |
Sales | (1,468) | (1,211) |
Redemptions by issuer | 0 | |
Distributions | 0 | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 106,171 | 100,018 |
Change in unrealized gains/(losses) for the year included in earnings (or changes in net assets) for assets held at the end of the year | 7,705 | (9,574) |
Private equity and other investments | Private equity investments | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 83,165 | 77,435 |
Total gains/(losses) for the year: | ||
Included in earnings | 8,343 | 11,517 |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 5,245 | 11,271 |
Sales | (168) | (18) |
Redemptions by issuer | 0 | |
Distributions | (7,700) | (17,040) |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 88,885 | 83,165 |
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 | 8,331 | 11,517 |
Private equity and other investments | Other investments | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 441 | 565 |
Total gains/(losses) for the year: | ||
Included in earnings | 118 | 9 |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 217 | 8 |
Sales | (245) | 0 |
Redemptions by issuer | 0 | |
Distributions | 0 | (141) |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | (195) | 0 |
Fair value end of year | 336 | 441 |
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 | $ 118 | $ 2 |
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, 2017 | Sep. 30, 2016 | |
Net trading profits | ||
Gains and Losses (Realized and Unrealized) Included in Earnings [Line Items] | ||
Total gains/(losses) included in earnings | $ (2,567) | $ (3,185) |
Change in unrealized gains/(losses) for assets held at the end of the year | (1,625) | (2,750) |
Other revenues | ||
Gains and Losses (Realized and Unrealized) Included in Earnings [Line Items] | ||
Total gains/(losses) included in earnings | 9,018 | 11,795 |
Change in unrealized gains/(losses) for assets held at the end of the year | 8,449 | 11,519 |
Other Comprehensive Income (Loss) | ||
Gains and Losses (Realized and Unrealized) Included in Earnings [Line Items] | ||
Total gains/(losses) included in earnings | 10,049 | (11,049) |
Change in unrealized gains/(losses) for assets held at the end of the year | $ 7,705 | $ (10,922) |
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, 2017 | Sep. 30, 2016 | |
Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a recurring basis | $ 3,491,079 | $ 2,574,041 |
Nonrecurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a nonrecurring basis | 53,633 | 89,984 |
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 | 200,991 | 214,798 |
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 | $ 106,171 | $ 100,018 |
Significant unobservable inputs (Level 3) | Recurring | ARS - preferred securities | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 5.46% | 4.87% |
Average interest rates applicable to future interest income on the securities | 2.58% | 1.24% |
Prepayment year | Dec. 31, 2017 | Dec. 31, 2016 |
Significant unobservable inputs (Level 3) | Recurring | ARS - preferred securities | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 6.81% | 6.34% |
Average interest rates applicable to future interest income on the securities | 3.44% | 2.51% |
Prepayment year | Dec. 31, 2021 | Dec. 31, 2021 |
Significant unobservable inputs (Level 3) | Recurring | ARS - preferred securities | Discounted cash flow | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Average discount rate | 6.03% | 5.56% |
Average interest rates applicable to future interest income on the securities | 2.72% | 1.34% |
Prepayment year | Dec. 31, 2021 | 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 | $ 68,454 | $ 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 | $ 20,431 | $ 26,419 |
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% | 13.00% |
Terminal growth rate of cash flows | 3.00% | 3.00% |
Terminal year | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 25.00% | 20.00% |
Terminal growth rate of cash flows | 3.00% | 3.00% |
Terminal year | Dec. 31, 2042 | Dec. 31, 2021 |
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 | 22.40% | 17.90% |
Terminal growth rate of cash flows | 3.00% | 3.00% |
Terminal year | Dec. 31, 2021 | Dec. 31, 2020 |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Market approach - market multiple method | Minimum | ||
Fair Value Inputs [Abstract] | ||
EBITDA multiple | 5.25 | 5.25 |
Weighting assigned to outcome of scenario 1/scenario 2 | 87.00% | 81.00% |
Significant unobservable inputs (Level 3) | Recurring | Private equity investments (not measured at NAV): | Market approach - market multiple method | Maximum | ||
Fair Value Inputs [Abstract] | ||
EBITDA multiple | 7 | 7.5 |
Weighting assigned to outcome of scenario 1/scenario 2 | 13.00% | 19.00% |
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 | 5.8 | 6.3 |
Significant unobservable inputs (Level 3) | Recurring | ARS – municipal obligations | 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 – municipal obligations | 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 – municipal obligations | 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 – municipal obligations | 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 - municipal obligations group 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 - municipal obligations group 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 - municipal obligations group 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 - municipal obligations group 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) | Nonrecurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets at fair value on a nonrecurring basis | $ 23,994 | $ 47,982 |
Significant unobservable inputs (Level 3) | Nonrecurring | Bank loans: 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 | $ 20,736 | $ 21,909 |
Significant unobservable inputs (Level 3) | Nonrecurring | Bank loans: impaired loans - residential | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Prepayment rate (in years) | 7 years | 7 years |
Significant unobservable inputs (Level 3) | Nonrecurring | Bank loans: impaired loans - residential | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Prepayment rate (in years) | 12 years | 12 years |
Significant unobservable inputs (Level 3) | Nonrecurring | Bank loans: impaired loans - residential | Discounted cash flow | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Prepayment rate (in years) | 10 years 4 months 24 days | 10 years 2 months 12 days |
Significant unobservable inputs (Level 3) | Nonrecurring | Bank loans: 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 | $ 3,258 | $ 26,073 |
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, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments at NAV, percentage of funds to be liquidated in five years or less | 90.00% | |
Private equity investments at NAV, ninety percent of funds held, maximum estimated life | 5 years | |
Private equity investments at NAV, percentage of funds to be liquidated between five and 10 years | 10.00% | |
Private equity investments at NAV, ten percent of funds held, minimum estimated life | 9 years | |
Total private equity investments | $ 198,779 | $ 194,634 |
Private equity investments, covered funds, additional conformance period | 5 years | |
Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV | $ 109,894 | 111,469 |
Private equity investments measured at NAV | 23,246 | 30,543 |
Private equity investments measured at fair value | 88,885 | 83,165 |
Total private equity investments | 198,779 | 194,634 |
Noncontrolling Interest | Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV | 2,273 | 3,001 |
Total private equity investments | 54,000 | 51,000 |
Parent | Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV | 20,973 | 27,542 |
Total private equity investments | $ 145,000 | $ 144,000 |
Private equity investments, weighted average percentage owned | 73.00% | 74.00% |
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 | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Carrying amount | ||
Financial assets: | ||
Bank loans, net | $ 16,954,042 | $ 15,121,430 |
Loans to financial advisors, net | 863,647 | 826,776 |
Financial liabilities: | ||
Bank deposits | 17,732,362 | 14,262,547 |
Other borrowings | 28,813 | 33,391 |
Senior notes payable | 1,548,839 | 1,680,587 |
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 | 0 | 0 |
Senior notes payable | 0 | 362,180 |
Significant other observable inputs (Level 2) | ||
Financial assets: | ||
Bank loans, net | 23,001 | 196,109 |
Loans to financial advisors, net | 0 | 0 |
Financial liabilities: | ||
Bank deposits | 17,417,678 | 13,947,310 |
Other borrowings | 29,278 | 34,520 |
Senior notes payable | 1,647,696 | 1,452,071 |
Significant unobservable inputs (Level 3) | ||
Financial assets: | ||
Bank loans, net | 16,836,745 | 14,925,802 |
Loans to financial advisors, net | 698,862 | 699,733 |
Financial liabilities: | ||
Bank deposits | 313,359 | 318,228 |
Other borrowings | 0 | 0 |
Senior notes payable | 0 | 0 |
Recurring | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 16,859,746 | 15,121,911 |
Loans to financial advisors, net | 698,862 | 699,733 |
Financial liabilities: | ||
Bank deposits | 17,731,037 | 14,265,538 |
Other borrowings | 29,278 | 34,520 |
Senior notes payable | $ 1,647,696 | $ 1,814,251 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans to financial advisors, repayment period | 5 years | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans to financial advisors, repayment period | 8 years |
AVAILABLE FOR SALE SECURITIES,
AVAILABLE FOR SALE SECURITIES, Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | $ 2,192,402 | $ 866,060 |
Gross unrealized gains | 6,422 | 2,535 |
Gross unrealized losses | (10,542) | (9,197) |
Fair value | 2,188,282 | 859,398 |
RJ Bank | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 2,090,728 | 735,343 |
Gross unrealized gains | 1,925 | 2,521 |
Gross unrealized losses | (10,542) | (3,631) |
Fair value | 2,082,111 | 734,233 |
RJ Bank | Agency MBS and CMOs | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 2,089,153 | 680,341 |
Gross unrealized gains | 1,925 | 2,512 |
Gross unrealized losses | (9,999) | (556) |
Fair value | 2,081,079 | 682,297 |
RJ Bank | Non-agency CMOs | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 53,427 | |
Gross unrealized gains | 9 | |
Gross unrealized losses | (2,917) | |
Fair value | 50,519 | |
Non-credit portion of OTTI recorded in AOCI, before tax | 2,000 | |
RJ Bank | Other securities | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 1,575 | 1,575 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (543) | (158) |
Fair value | 1,032 | 1,417 |
Non-broker-dealer subsidiaries | Auction rate securities | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 130,717 | |
Gross unrealized gains | 14 | |
Gross unrealized losses | (5,566) | |
Fair value | 125,165 | |
Non-broker-dealer subsidiaries | ARS – municipal obligations | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 27,491 | |
Gross unrealized gains | 14 | |
Gross unrealized losses | (2,358) | |
Fair value | 25,147 | |
Non-broker-dealer subsidiaries | ARS - preferred securities | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 101,674 | 103,226 |
Gross unrealized gains | 4,497 | 0 |
Gross unrealized losses | 0 | (3,208) |
Fair value | $ 106,171 | $ 100,018 |
AVAILABLE FOR SALE SECURITIES69
AVAILABLE FOR SALE SECURITIES, Contractual Maturities (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Amortized cost [Abstract] | |
Within one year | $ 0 |
After one but within five years | 110,510 |
After five but within ten years | 675,502 |
After ten years | 1,406,390 |
Total | 2,192,402 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 110,019 |
After five but within ten years | 673,454 |
After ten years | 1,404,809 |
Total | $ 2,188,282 |
Weighted-average yield [Abstract] | |
Within one year (in hundredths) | 0.00% |
After one but within five years (in hundredths) | 1.96% |
After five but within ten years (in hundredths) | 1.87% |
After ten years (in hundredths) | 1.98% |
Total (in hundredths) | 1.95% |
RJ Bank | Agency MBS and CMOs | |
Amortized cost [Abstract] | |
Within one year | $ 0 |
After one but within five years | 110,510 |
After five but within ten years | 675,502 |
After ten years | 1,303,141 |
Total | 2,089,153 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 110,019 |
After five but within ten years | 673,454 |
After ten years | 1,297,606 |
Total | $ 2,081,079 |
Weighted-average yield [Abstract] | |
Within one year (in hundredths) | 0.00% |
After one but within five years (in hundredths) | 1.96% |
After five but within ten years (in hundredths) | 1.87% |
After ten years (in hundredths) | 1.97% |
Total (in hundredths) | 1.94% |
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 | 1,032 |
Total | $ 1,032 |
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 and CMOs and other securities | |
Amortized cost [Abstract] | |
Within one year | $ 0 |
After one but within five years | 110,510 |
After five but within ten years | 675,502 |
After ten years | 1,304,716 |
Total | 2,090,728 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 110,019 |
After five but within ten years | 673,454 |
After ten years | 1,298,638 |
Total | $ 2,082,111 |
Weighted-average yield [Abstract] | |
Within one year (in hundredths) | 0.00% |
After one but within five years (in hundredths) | 1.96% |
After five but within ten years (in hundredths) | 1.87% |
After ten years (in hundredths) | 1.97% |
Total (in hundredths) | 1.94% |
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 | 101,674 |
Total | 101,674 |
Carrying value [Abstract] | |
Within one year | 0 |
After one but within five years | 0 |
After five but within ten years | 0 |
After ten years | 106,171 |
Total | $ 106,171 |
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) | 2.10% |
Total (in hundredths) | 2.10% |
AVAILABLE FOR SALE SECURITIES70
AVAILABLE FOR SALE SECURITIES, Gross Unrealized Losses and Fair Value and Significant Assumptions (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | $ 1,119,715 | $ 326,246 |
Estimated fair value 12 months or more | 296,560 | 84,725 |
Total estimated fair value | 1,416,275 | 410,971 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (5,621) | (4,445) |
Unrealized losses 12 months or more | (4,921) | (4,752) |
Unrealized losses | (10,542) | (9,197) |
RJ Bank | Agency MBS and CMOs | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | 1,119,715 | 208,880 |
Estimated fair value 12 months or more | 295,528 | 28,893 |
Total estimated fair value | 1,415,243 | 237,773 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (5,621) | (361) |
Unrealized losses 12 months or more | (4,378) | (195) |
Unrealized losses | (9,999) | (556) |
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 | |
Estimated fair value 12 months or more | 44,137 | |
Total estimated fair value | 48,393 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (21) | |
Unrealized losses 12 months or more | (2,896) | |
Unrealized losses | (2,917) | |
RJ Bank | Other securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | 0 | 1,417 |
Estimated fair value 12 months or more | 1,032 | 0 |
Total estimated fair value | 1,032 | 1,417 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | 0 | (158) |
Unrealized losses 12 months or more | (543) | 0 |
Unrealized losses | $ (543) | (158) |
Non-broker-dealer subsidiaries | ARS – municipal obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Estimated fair value less than 12 months | 13,204 | |
Estimated fair value 12 months or more | 11,695 | |
Total estimated fair value | 24,899 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Unrealized losses less than 12 months | (697) | |
Unrealized losses 12 months or more | (1,661) | |
Unrealized losses | (2,358) | |
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 SECURITIES71
AVAILABLE FOR SALE SECURITIES, Narrative (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017USD ($)position | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost basis | $ 2,192,402 | ||
Available-for-sale securities | 2,188,282 | $ 859,398 | |
Proceeds from sales of available-for-sale securities | 93,774 | 11,062 | $ 84,785 |
Federal National Mortgage Association (FNMA) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost basis | 1,430,000 | ||
Available-for-sale securities | 1,420,000 | ||
Federal Home Loan Mortgage Corporation (FHLMC) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost basis | 586,000 | ||
Available-for-sale securities | 582,000 | ||
RJ Bank available for sale securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales of available-for-sale securities | 66,000 | 8,000 | 12,000 |
Auction rate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales of available-for-sale securities | 30,000 | 3,000 | 64,000 |
Par value of auction rate securities repurchased | 120,000 | ||
RJ Bank | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | $ 2,082,111 | 734,233 | |
RJ Bank | Agency MBS and CMOs | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position | position | 133 | ||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | position | 100 | ||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | position | 33 | ||
Amortized cost basis | $ 2,089,153 | ||
Available-for-sale securities | 2,081,079 | $ 682,297 | |
Other revenues | RJ Bank available for sale securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, gross realized gain (loss) | 1,000 | (1,000) | |
Other revenues | Auction rate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, gross realized gain (loss) | $ 1,000 | $ 11,000 |
AVAILABLE FOR SALE SECURITIES72
AVAILABLE FOR SALE SECURITIES, OTTI Related to Credit Losses Recognized in Other Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
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 | $ 8,107 | $ 11,847 | $ 18,703 |
Decreases to the amount related to credit losses for securities sold during the year | (8,107) | (3,740) | (6,856) |
Amount related to credit losses on securities we held at the end of the year | $ 0 | $ 8,107 | $ 11,847 |
DERIVATIVE FINANCIAL INSTRUME73
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative [Line Items] | |||
Receivable for uncollectible derivative transaction revenues | $ 5,000,000 | $ 7,000,000 | |
Hedge ineffectiveness | 0 | 0 | $ 0 |
Gain (loss) excluded from assessment of hedge effectiveness | 0 | $ 0 | $ 0 |
RJ Bank | |||
Derivative [Line Items] | |||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ (4,000,000) | ||
Maximum length of time hedged in cash flow hedge | 10 years |
DERIVATIVE FINANCIAL INSTRUME74
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS, Derivative Asset and Liability Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Derivative assets | ||
Derivative assets | $ 374,503 | $ 587,645 |
Counterparty netting | (6,045) | (55,498) |
Cash collateral netting | (49,683) | (52,041) |
Total amounts offset | (55,728) | (107,539) |
Net amounts presented in the Statements of Financial Condition | 318,775 | 480,106 |
Financial instruments | (293,340) | (451,224) |
Cash received/(paid) | 0 | 0 |
Gross amounts not offset subtotal | (293,340) | (451,224) |
Net amount | 25,435 | 28,882 |
Derivative liabilities | ||
Derivative liabilities | 416,374 | 618,467 |
Counterparty netting | (6,045) | (55,498) |
Cash collateral netting | (53,365) | (87,361) |
Total amounts offset | (59,410) | (142,859) |
Derivative liability | 356,964 | 475,608 |
Financial instruments | (288,035) | (424,633) |
Cash received/(paid) | 0 | (26,671) |
Gross amounts not offset subtotal | (288,035) | (451,304) |
Net amount | 68,929 | 24,304 |
Notional amount | 10,060,526 | 8,858,327 |
Derivatives not designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 374,474 | 586,249 |
Derivative liabilities | ||
Derivative liabilities | 414,868 | 591,796 |
Notional amount | 8,161,880 | 7,554,954 |
Derivatives not designated as hedging instruments | Matched book | ||
Derivative assets | ||
Derivative assets | 288,035 | 422,196 |
Derivative liabilities | ||
Derivative liabilities | 288,035 | 422,196 |
Notional amount | 2,766,488 | 2,938,590 |
Derivatives not designated as hedging instruments | Other | ||
Derivative assets | ||
Derivative assets | 86,436 | 163,433 |
Derivative liabilities | ||
Derivative liabilities | 100,503 | 151,831 |
Notional amount | 4,931,809 | 4,285,033 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative assets | ||
Derivative assets | 3 | 620 |
Derivative liabilities | ||
Derivative liabilities | 530 | 0 |
Notional amount | 437,783 | 313,562 |
Derivatives not designated as hedging instruments | Deutsche bank restricted stock derivative | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 25,800 | 17,769 |
Notional amount | 25,800 | 17,769 |
Derivatives designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 29 | 1,396 |
Derivative liabilities | ||
Derivative liabilities | 1,506 | 26,671 |
Notional amount | 1,898,646 | 1,303,373 |
Derivatives designated as hedging instruments | Interest rate contracts: | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 1,390 | 26,671 |
Notional amount | 850,000 | 550,000 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative assets | ||
Derivative assets | 29 | 1,396 |
Derivative liabilities | ||
Derivative liabilities | 116 | 0 |
Notional amount | 1,048,646 | 753,373 |
Recurring | ||
Derivative assets | ||
Net amounts presented in the Statements of Financial Condition | 318,775 | 480,106 |
Derivative liabilities | ||
Derivative liability | 356,964 | 475,608 |
Recurring | Interest rate contracts: | ||
Derivative assets | ||
Net amounts presented in the Statements of Financial Condition | 30,708 | 55,894 |
Derivative liabilities | ||
Derivative liability | 42,483 | 35,643 |
Recurring | Deutsche bank restricted stock derivative | ||
Derivative liabilities | ||
Other investments, share based compensation economic hedge | 19,000 | 12,000 |
Recurring | Not Designated as Hedging Instrument, Economic Hedge | Deutsche bank restricted stock derivative | ||
Derivative liabilities | ||
Other investments, share based compensation economic hedge | $ 19,000 | $ 12,000 |
DERIVATIVE FINANCIAL INSTRUME75
DERIVATIVE FINANCIAL INSTRUMENTS, Derivative Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (losses) gains recognized in AOCI, net of taxes | $ (3,049) | $ (18,554) | $ 55,681 |
Interest rate contracts: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (losses) gains recognized in AOCI, net of taxes | 23,232 | (11,833) | (4,650) |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (losses) gains recognized in AOCI, net of taxes | $ (26,281) | $ (6,721) | $ 60,331 |
DERIVATIVE FINANCIAL INSTRUME76
DERIVATIVE FINANCIAL INSTRUMENTS, Income Statement Location (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net trading profits | Interest rate contracts: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | $ 7,895 | $ 2,819 | $ 3,107 |
Other revenues | Interest rate contracts: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | 36 | 92 | 901 |
Other revenues | Forward foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | (19,961) | (2,662) | 20,459 |
Compensation, commissions and benefits expense | Deutsche bank restricted stock derivative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | (5,648) | 2,457 | 0 |
Acquisition-related expenses | Deutsche bank restricted stock derivative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | $ (2,383) | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME77
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS, Risk (Details) | Sep. 30, 2017credit_rating_agency |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Debt, minimum number of agencies required to maintain an investment grade rating (or more) | 1 |
COLLATERALIZED AGREEMENTS AND78
COLLATERALIZED AGREEMENTS AND FINANCINGS COLLATERALIZED AGREEMENTS AND FINANCINGS, Schedule of Offsetting Transactions (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Reverse repurchase agreements | ||
Gross amounts of recognized assets/liabilities | $ 404,462 | $ 470,222 |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | 404,462 | 470,222 |
Gross amounts not offset in the Statements of Financial Condition | (404,462) | (470,222) |
Net amount | 0 | 0 |
Securities borrowed | ||
Gross amounts of recognized assets/liabilities | 138,319 | 170,860 |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | 138,319 | 170,860 |
Gross amounts not offset in the Statements of Financial Condition | (134,304) | (167,169) |
Net amount | 4,015 | 3,691 |
Repurchase agreements | ||
Gross amounts of recognized assets/liabilities | 220,942 | 193,229 |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | 220,942 | 193,229 |
Gross amounts not offset in the Statements of Financial Condition | (220,942) | (193,229) |
Net amount | 0 | 0 |
Securities loaned | ||
Gross amounts of recognized assets/liabilities | 383,953 | 677,761 |
Gross amounts offset in the Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Statements of Financial Condition | 383,953 | 677,761 |
Gross amounts not offset in the Statements of Financial Condition | (373,132) | (664,870) |
Net amount | $ 10,821 | $ 12,891 |
COLLATERALIZED AGREEMENTS AND79
COLLATERALIZED AGREEMENTS AND FINANCINGS, Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Collateral Received that Can be Resold or Repledged [Abstract] | ||
Collateral we received that is available to be delivered or repledged | $ 3,030,736 | $ 2,925,335 |
Collateral that we delivered or repledged | $ 1,068,912 | $ 1,536,393 |
COLLATERALIZED AGREEMENTS AND80
COLLATERALIZED AGREEMENTS AND FINANCINGS, Encumbered Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Financial instruments owned, at fair value, pledged to counterparties that: | ||
Had the right to deliver or repledge | $ 363,739 | $ 440,642 |
Did not have the right to deliver or repledge | $ 44,930 | $ 18,788 |
COLLATERALIZED AGREEMENTS AND81
COLLATERALIZED AGREEMENTS AND FINANCINGS, Repurchase Agreements, Securities Lending Transactions & Repurchase-to-Maturity Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | $ 220,942 | $ 193,229 |
Total | 604,895 | 870,990 |
Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the table within this footnote | 604,895 | 870,990 |
Amounts related to repurchase agreements and securities lending transactions not included in the table 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 | 107,284 | 99,056 |
Agency MBS and CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 113,658 | 94,173 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Equity securities | 383,953 | 677,761 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 220,942 | 185,226 |
Total | 604,895 | 862,987 |
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 | 107,284 | 92,804 |
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 | 113,658 | 92,422 |
Overnight and continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Equity securities | 383,953 | 677,761 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 0 | 8,003 |
Total | 0 | 8,003 |
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 | 0 | 6,252 |
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 | 0 | 1,751 |
Up to 30 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Equity securities | 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] | ||
Equity securities | 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] | ||
Equity securities | $ 0 | $ 0 |
BANK LOANS, NET, Held for Sale
BANK LOANS, NET, Held for Sale and Held for Investment (Details) $ in Thousands | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) |
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 | $ 70,316 | $ 214,286 | $ 119,519 | $ 45,988 | $ 110,292 |
Loans held for investment: | |||||
Total loans held for investment | 17,158,099 | 15,234,502 | 13,073,183 | 11,103,418 | 8,891,346 |
Net unearned income and deferred expenses | (31,178) | (40,675) | (32,424) | (37,533) | (43,936) |
Total loans held for investment, net | 17,126,921 | 15,193,827 | 13,040,759 | 11,065,885 | 8,847,410 |
Total loans held for sale and investment | 17,197,237 | 15,408,113 | 13,160,278 | 11,111,873 | 8,957,702 |
Allowance for loan losses | (190,442) | (197,378) | (172,257) | (147,574) | (136,501) |
Bank loans, net | $ 17,006,795 | $ 15,210,735 | $ 12,988,021 | $ 10,964,299 | $ 8,821,201 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for sale, net (in hundredths) | 0.00% | 1.00% | 1.00% | 0.00% | 1.00% |
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 | $ 7,385,910 | $ 7,470,373 | $ 6,928,018 | $ 6,422,347 | $ 5,246,005 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 43.00% | 48.00% | 52.00% | 58.00% | 59.00% |
CRE construction loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 112,681 | $ 122,718 | $ 162,356 | $ 94,195 | $ 60,840 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
CRE loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 3,106,290 | $ 2,554,071 | $ 2,054,154 | $ 1,689,163 | $ 1,283,046 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 18.00% | 17.00% | 16.00% | 15.00% | 14.00% |
Tax-exempt loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 1,017,791 | $ 740,944 | $ 484,537 | $ 122,218 | $ 0 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 6.00% | 5.00% | 4.00% | 1.00% | 0.00% |
Residential mortgage loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 3,148,730 | $ 2,441,569 | $ 1,962,614 | $ 1,751,747 | $ 1,745,650 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 18.00% | 16.00% | 15.00% | 16.00% | 19.00% |
SBL | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 2,386,697 | $ 1,904,827 | $ 1,481,504 | $ 1,023,748 | $ 555,805 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 14.00% | 12.00% | 11.00% | 9.00% | 6.00% |
BANK LOANS, NET, Originations,
BANK LOANS, NET, Originations, Purchases, and Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Loans held for sale | |||
Payments for Origination and Purchases of Loans Held-for-sale [Abstract] | |||
Loans held for sale purchased or originated | $ 1,670,000 | $ 1,800,000 | $ 1,240,000 |
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Proceeds for sale of loans held for sale | 439,000 | 383,000 | 213,000 |
Gain on sales of loans, net | 2,000 | 2,000 | 2,000 |
Loans held for investment | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 864,509 | 854,082 | 1,013,232 |
Sales | 341,196 | 172,968 | 108,983 |
Loans held for investment | C&I loans | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 536,627 | 457,503 | 792,921 |
Sales | 341,196 | 172,968 | 108,983 |
Loans held for investment | CRE | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 63,542 | 24,869 | 0 |
Sales | 0 | 0 | 0 |
Loans held for investment | Residential mortgage | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 264,340 | 371,710 | 220,311 |
Sales | $ 0 | $ 0 | $ 0 |
BANK LOANS, NET, Analysis of Pa
BANK LOANS, NET, Analysis of Payment Status of Loans Held for Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | $ 17,158,099 | $ 15,234,502 | $ 13,073,183 | $ 11,103,418 | $ 8,891,346 |
Nonaccrual | 38,970 | 81,207 | |||
Performing nonaccrual loans | 18,000 | 54,000 | |||
C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 7,385,910 | 7,470,373 | 6,928,018 | 6,422,347 | 5,246,005 |
Nonaccrual | 5,221 | 35,194 | |||
CRE construction loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 112,681 | 122,718 | 162,356 | 94,195 | 60,840 |
Nonaccrual | 0 | 0 | |||
CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 3,106,290 | 2,554,071 | 2,054,154 | 1,689,163 | 1,283,046 |
Nonaccrual | 0 | 4,230 | |||
Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 1,017,791 | 740,944 | 484,537 | 122,218 | 0 |
Nonaccrual | 0 | 0 | |||
Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 3,122,272 | 2,420,869 | |||
Nonaccrual | 33,718 | 41,746 | |||
Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 26,458 | 20,700 | |||
Nonaccrual | 31 | 37 | |||
SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 2,386,697 | 1,904,827 | $ 1,481,504 | $ 1,023,748 | $ 555,805 |
Nonaccrual | 0 | 0 | |||
30-89 days and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 2,101 | 1,766 | |||
30-89 days and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
30-89 days and accruing | CRE construction loans | |||||
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 | 1,853 | 1,766 | |||
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 | 248 | 0 | |||
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 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 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 | 2,101 | 1,766 | |||
Total past due and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 0 | 0 | |||
Total past due and accruing | CRE construction loans | |||||
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 | 1,853 | 1,766 | |||
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 | 248 | 0 | |||
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 | 17,117,028 | 15,151,529 | |||
Current and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 7,380,689 | 7,435,179 | |||
Current and accruing | CRE construction loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 112,681 | 122,718 | |||
Current and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 3,106,290 | 2,549,841 | |||
Current and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 1,017,791 | 740,944 | |||
Current and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 3,086,701 | 2,377,357 | |||
Current and accruing | Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 26,179 | 20,663 | |||
Current and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 2,386,697 | 1,904,827 | |||
One-to-Four Family Residential Mortgage Loans | Residential mortgage | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 18,000 | 21,000 | |||
Other assets | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Other real estate owned | $ 5,000 | $ 5,000 |
BANK LOANS, NET, Summary of Imp
BANK LOANS, NET, Summary of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | $ 29,198 | $ 65,587 | |
Impaired loans without allowance for loan losses, gross recorded investment | 16,737 | 22,039 | |
Total impaired loans, gross recorded investment | 45,935 | 87,626 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 37,260 | 77,209 | |
Impaired loans without allowance for loan losses, unpaid principal balance | 24,899 | 38,097 | |
Total impaired loans, unpaid principal balance | 62,159 | 115,306 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 4,467 | 16,498 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Average impaired loan balance | 62,079 | 74,140 | $ 85,054 |
Interest income recognized | 1,253 | 1,413 | 1,426 |
C&I loans | |||
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | 5,221 | 35,194 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 6,160 | 35,872 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 1,963 | 13,351 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Average impaired loan balance | 17,540 | 18,112 | 11,311 |
CRE loans | |||
Gross recorded investment [Abstract] | |||
Impaired loans without allowance for loan losses, gross recorded investment | 0 | 4,230 | |
Unpaid principal balance [Abstract] | |||
Impaired loans without allowance for loan losses, unpaid principal balance | 0 | 11,611 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Impaired loan, troubled debt restructurings | 4,000 | ||
Average impaired loan balance | 694 | 4,474 | 14,694 |
Residential mortgage - first mortgage loans | |||
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | 23,977 | 30,393 | |
Impaired loans without allowance for loan losses, gross recorded investment | 16,737 | 17,809 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 31,100 | 41,337 | |
Impaired loans without allowance for loan losses, unpaid principal balance | 24,899 | 26,486 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 2,504 | 3,147 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Impaired loan, troubled debt restructurings | 27,000 | 28,000 | |
Average impaired loan balance | 43,845 | 51,554 | 59,049 |
Interest income recognized | $ 1,253 | $ 1,413 | $ 1,426 |
BANK LOANS, NET, Credit Quality
BANK LOANS, NET, Credit Quality of Held for Investment Loan Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 17,158,099 | $ 15,234,502 |
C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 7,385,910 | 7,470,373 |
CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 112,681 | 122,718 |
CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,106,290 | 2,554,071 |
Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,017,791 | 740,944 |
Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,122,272 | 2,420,869 |
Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 26,458 | 20,700 |
SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 2,386,697 | 1,904,827 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 16,893,435 | 14,935,022 |
Pass | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 7,232,777 | 7,241,055 |
Pass | CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 112,681 | 122,718 |
Pass | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,048,847 | 2,549,672 |
Pass | Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,017,791 | 740,944 |
Pass | Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,068,290 | 2,355,393 |
Pass | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 26,352 | 20,413 |
Pass | SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 2,386,697 | 1,904,827 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 129,821 | 128,577 |
Special mention | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 63,964 | 117,046 |
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 | 57,315 | 0 |
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 | 8,467 | 11,349 |
Special mention | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 75 | 182 |
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 | 134,843 | 170,903 |
Substandard | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 89,169 | 112,272 |
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 | 128 | 4,399 |
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 | 45,515 | 54,127 |
Substandard | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 31 | 105 |
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 |
Maximum | Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percent of loans with LTV in excess of 100% | 1.00% |
BANK LOANS, NET, Allowance for
BANK LOANS, NET, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for loan losses | $ 12,987 | $ 28,167 | $ 23,570 |
Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 197,378 | 172,257 | 147,574 |
Provision/(benefit) for loan losses | 12,987 | 28,167 | 23,570 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (27,006) | (4,426) | (2,858) |
Recoveries | 6,354 | 1,417 | 5,615 |
Net (charge-offs)/recoveries | (20,652) | (3,009) | 2,757 |
Foreign exchange translation adjustment | 729 | (37) | (1,644) |
Balance at end of period | 190,442 | 197,378 | 172,257 |
C&I | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 137,701 | 117,623 | 103,179 |
Provision/(benefit) for loan losses | 7,502 | 23,051 | 16,091 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (26,088) | (2,956) | (1,191) |
Recoveries | 340 | 0 | 611 |
Net (charge-offs)/recoveries | (25,748) | (2,956) | (580) |
Foreign exchange translation adjustment | 446 | (17) | (1,067) |
Balance at end of period | 119,901 | 137,701 | 117,623 |
CRE construction | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 1,614 | 2,707 | 1,594 |
Provision/(benefit) for loan losses | (101) | (1,023) | 1,176 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net (charge-offs)/recoveries | 0 | 0 | 0 |
Foreign exchange translation adjustment | (92) | (70) | (63) |
Balance at end of period | 1,421 | 1,614 | 2,707 |
CRE loans | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 36,533 | 30,486 | 25,022 |
Provision/(benefit) for loan losses | (172) | 5,997 | 2,205 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | 0 |
Recoveries | 5,013 | 0 | 3,773 |
Net (charge-offs)/recoveries | 5,013 | 0 | 3,773 |
Foreign exchange translation adjustment | 375 | 50 | (514) |
Balance at end of period | 41,749 | 36,533 | 30,486 |
Tax-exempt | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 4,100 | 5,949 | 1,380 |
Provision/(benefit) for loan losses | 2,281 | (1,849) | 4,569 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net (charge-offs)/recoveries | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | 6,381 | 4,100 | 5,949 |
Residential mortgage | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 12,664 | 12,526 | 14,350 |
Provision/(benefit) for loan losses | 3,944 | 191 | (1,388) |
Net (charge-offs)/recoveries: | |||
Charge-offs | (918) | (1,470) | (1,667) |
Recoveries | 1,001 | 1,417 | 1,231 |
Net (charge-offs)/recoveries | 83 | (53) | (436) |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | 16,691 | 12,664 | 12,526 |
SBL | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 4,766 | 2,966 | 2,049 |
Provision/(benefit) for loan losses | (467) | 1,800 | 917 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net (charge-offs)/recoveries | 0 | 0 | 0 |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | $ 4,299 | $ 4,766 | $ 2,966 |
BANK LOANS, NET, Allowance fo88
BANK LOANS, NET, Allowance for Loan Losses, Loans Individually and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Recorded investment [Abstract] | |||||
Total loans held for investment | $ 17,158,099 | $ 15,234,502 | $ 13,073,183 | $ 11,103,418 | $ 8,891,346 |
Reserve for unfunded lending commitments [Abstract] | |||||
Reserve for unfunded lending commitments | 11,000 | 11,000 | |||
C&I loans | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 7,385,910 | 7,470,373 | 6,928,018 | 6,422,347 | 5,246,005 |
CRE construction | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 112,681 | 122,718 | 162,356 | 94,195 | 60,840 |
CRE | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 3,106,290 | 2,554,071 | 2,054,154 | 1,689,163 | 1,283,046 |
Tax-exempt | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 1,017,791 | 740,944 | 484,537 | 122,218 | 0 |
SBL | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 2,386,697 | 1,904,827 | 1,481,504 | 1,023,748 | $ 555,805 |
Loans held for investment | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 4,469 | 16,507 | |||
Collectively evaluated for impairment | 185,973 | 180,871 | |||
Total allowance for loan losses | 190,442 | 197,378 | 172,257 | 147,574 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 52,589 | 96,159 | |||
Collectively evaluated for impairment | 17,105,510 | 15,138,343 | |||
Total loans held for investment | 17,158,099 | 15,234,502 | |||
Loans held for investment | C&I loans | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 1,963 | 13,351 | |||
Collectively evaluated for impairment | 117,938 | 124,350 | |||
Total allowance for loan losses | 119,901 | 137,701 | 117,623 | 103,179 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 5,221 | 35,194 | |||
Collectively evaluated for impairment | 7,380,689 | 7,435,179 | |||
Total loans held for investment | 7,385,910 | 7,470,373 | |||
Loans held for investment | CRE construction | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 1,421 | 1,614 | |||
Total allowance for loan losses | 1,421 | 1,614 | 2,707 | 1,594 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 112,681 | 122,718 | |||
Total loans held for investment | 112,681 | 122,718 | |||
Loans held for investment | CRE | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 41,749 | 36,533 | |||
Total allowance for loan losses | 41,749 | 36,533 | 30,486 | 25,022 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 4,230 | |||
Collectively evaluated for impairment | 3,106,290 | 2,549,841 | |||
Total loans held for investment | 3,106,290 | 2,554,071 | |||
Loans held for investment | Tax-exempt | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 6,381 | 4,100 | |||
Total allowance for loan losses | 6,381 | 4,100 | 5,949 | 1,380 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 1,017,791 | 740,944 | |||
Total loans held for investment | 1,017,791 | 740,944 | |||
Loans held for investment | Residential mortgage | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 2,506 | 3,156 | |||
Collectively evaluated for impairment | 14,185 | 9,508 | |||
Total allowance for loan losses | 16,691 | 12,664 | 12,526 | 14,350 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 47,368 | 56,735 | |||
Collectively evaluated for impairment | 3,101,362 | 2,384,834 | |||
Total loans held for investment | 3,148,730 | 2,441,569 | |||
Loans held for investment | SBL | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 4,299 | 4,766 | |||
Total allowance for loan losses | 4,299 | 4,766 | $ 2,966 | $ 2,049 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 2,386,697 | 1,904,827 | |||
Total loans held for investment | $ 2,386,697 | $ 1,904,827 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Entity Information [Line Items] | ||
Investments in company-owned life insurance | $ 504,108 | $ 417,137 |
Prepaid expenses | 96,059 | 91,129 |
Investment in FHLB stock | 52,187 | 38,813 |
Indemnification asset | 26,160 | 35,325 |
Investment in FRB stock | 24,706 | 24,706 |
Guaranteed LIHTC Fund financing asset | 15,786 | 20,543 |
All other | 34,244 | 51,727 |
Total other assets | 780,425 | 718,835 |
Cumulative face value of company-owned life insurance policies | $ 1,870,000 | |
Prepaid compensation asset, amortization period | 5 years | |
Amount of liability related to the low-income housing tax credit fund financing asset | $ 16,000 | 21,000 |
3Macs | ||
Entity Information [Line Items] | ||
Prepaid compensation expense | 17,276 | 24,285 |
Restricted Stock Units (RSUs) | Deutsche WM | ||
Entity Information [Line Items] | ||
Prepaid compensation expense | $ 9,899 | $ 15,170 |
VARIABLE INTEREST ENTITIES VARI
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES, Primary Beneficiary - Aggregate Assets and Liabilities (Details) $ in Thousands | Sep. 30, 2017USD ($)investor | Sep. 30, 2016USD ($) |
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Number of investors with a guaranteed return | investor | 1 | |
Private Equity Interests | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | $ 104,414 | $ 140,870 |
Aggregate liabilities | 3,851 | 4,888 |
LIHTC Fund in which RJ Bank is an investor member | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 57,719 | 55,550 |
Aggregate liabilities | 1,055 | 240 |
Guaranteed LIHTC Fund | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 51,400 | 63,415 |
Aggregate liabilities | 2,872 | 2,556 |
Other LIHTC Funds | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 7,418 | |
Aggregate liabilities | 2,544 | |
Restricted Stock Trust Fund | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 12,122 | 9,949 |
Aggregate liabilities | 12,122 | 9,949 |
Total VIEs - Primary Beneficiary | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 233,073 | 269,784 |
Aggregate liabilities | $ 22,444 | $ 17,633 |
VARIABLE INTEREST ENTITIES VA91
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES, Primary Beneficiary - Carrying Value of Assets, Liabilities and Equity (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Assets: | ||||
Cash and cash equivalents | $ 3,669,672 | $ 1,650,452 | $ 2,601,006 | $ 2,199,063 |
Assets segregated pursuant to regulations and other segregated assets | 3,476,085 | 4,884,487 | ||
Other receivables | 652,769 | 610,417 | ||
Intercompany receivables | 873,272 | 838,721 | ||
Other assets | 780,425 | 718,835 | ||
Total assets | 34,883,456 | 31,486,976 | ||
Liabilities and equity: | ||||
Other payables | 567,045 | 556,532 | ||
Total liabilities | 29,190,105 | 26,424,000 | ||
Equity | 5,581,713 | 4,916,545 | ||
Noncontrolling interests | 111,638 | 146,431 | ||
Total equity | 5,693,351 | 5,062,976 | $ 4,678,935 | |
Total liabilities and equity | 34,883,456 | 31,486,976 | ||
Total VIEs - Primary Beneficiary | ||||
Assets: | ||||
Cash and cash equivalents | 2,052 | 8,302 | ||
Assets segregated pursuant to regulations and other segregated assets | 4,590 | 2,833 | ||
Other receivables | 168 | 28,463 | ||
Intercompany receivables | 454 | 475 | ||
Other investments | 101,905 | 103,630 | ||
Investments in real estate partnerships held by consolidated variable interest entities | 111,743 | 116,133 | ||
Trust fund investment in RJF common stock | 12,120 | 9,948 | ||
Other assets | 41 | 0 | ||
Total assets | 233,073 | 269,784 | ||
Liabilities and equity: | ||||
Other payables | 9,667 | 3,617 | ||
Intercompany payables | 16,520 | 16,416 | ||
Total liabilities | 26,187 | 20,033 | ||
Equity | 101,445 | 117,023 | ||
Noncontrolling interests | 105,441 | 132,728 | ||
Total equity | 206,886 | 249,751 | ||
Total liabilities and equity | $ 233,073 | $ 269,784 |
VARIABLE INTEREST ENTITIES VA92
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES, Not the Primary Beneficiary - Aggregate Assets, Liabilities Exposure to Loss (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
LIHTC Funds | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 5,372,367 | $ 4,217,812 |
Aggregate liabilities | 2,134,600 | 1,429,085 |
Our risk of loss | 60,959 | 83,562 |
NMTC Funds | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 30,297 | 65,338 |
Aggregate liabilities | 105 | 68 |
Our risk of loss | 9 | 12 |
Private Equity Interests | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 10,485,611 | 14,286,950 |
Aggregate liabilities | 174,354 | 132,334 |
Our risk of loss | 73,457 | 70,336 |
Other | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 169,462 | 144,579 |
Aggregate liabilities | 88,615 | 83,174 |
Our risk of loss | 3,163 | 2,240 |
Total | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 16,057,737 | 18,714,679 |
Aggregate liabilities | 2,397,674 | 1,644,661 |
Our risk of loss | $ 137,588 | $ 156,150 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 935,739 | $ 761,472 |
Less: Accumulated depreciation | (498,365) | (440,015) |
Total property and equipment, net | 437,374 | 321,457 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 29,079 | 24,150 |
Software, including development in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 345,734 | 271,864 |
Buildings, leasehold and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 324,452 | 260,800 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 224,418 | 200,947 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 12,056 | $ 3,711 |
GOODWILL AND IDENTIFIABLE INT94
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Schedule of Goodwill and Net Identifiable Intangible Asset Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 410,723 | $ 408,072 | $ 307,635 |
Identifiable intangible assets, net | 82,460 | 94,974 | |
Total goodwill and identifiable intangible assets, net | $ 493,183 | $ 503,046 |
GOODWILL AND IDENTIFIABLE INT95
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | $ 408,072,000 | $ 307,635,000 |
Additions | 0 | 95,363,000 |
Foreign currency translation | 2,651,000 | 5,074,000 |
Goodwill (end of the period) | 410,723,000 | 408,072,000 |
Private Client Group | ||
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | 275,521,000 | 186,733,000 |
Additions | 0 | 86,351,000 |
Foreign currency translation | 1,192,000 | 2,437,000 |
Goodwill (end of the period) | 276,713,000 | 275,521,000 |
Capital Markets | ||
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | 132,551,000 | 120,902,000 |
Additions | 0 | 9,012,000 |
Foreign currency translation | 1,459,000 | 2,637,000 |
Goodwill (end of the period) | $ 134,010,000 | 132,551,000 |
Deutsche WM | Private Client Group | ||
Goodwill [Roll Forward] | ||
Additions | $ 82,000,000 | |
Deutsche WM | Capital Markets | ||
Goodwill [Roll Forward] | ||
Tax deductible amount period of recognition | 15 years | |
3Macs | Private Client Group | ||
Goodwill [Roll Forward] | ||
Additions | $ 5,000,000 |
GOODWILL AND IDENTIFIABLE INT96
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Quantitative Analysis of Goodwill (Details) | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($)reporting_unit | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Impairment losses | $ 0 | $ 0 | |||
Number of reporting units | reporting_unit | 2 | ||||
Goodwill | $ 410,723,000 | $ 408,072,000 | $ 307,635,000 | ||
Private Client Group | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Goodwill | 276,713,000 | 275,521,000 | 186,733,000 | ||
Capital Markets | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Goodwill | $ 134,010,000 | $ 132,551,000 | $ 120,902,000 | ||
Raymond James Ltd | Private Client Group | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Goodwill | $ 22,735,000 | ||||
Raymond James Ltd | Capital Markets | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Goodwill | $ 18,997,000 | ||||
Income approach | Goodwill | Raymond James Ltd | Private Client Group | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||
Fair value inputs, discount rate | 14.50% | ||||
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 | 14.50% | ||||
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 | $ 12.9 | ||||
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 | 1.2 | ||||
Fair value inputs, earnings per share multiple | $ / shares | $ 13.3 | ||||
Fair value inputs, weighted rate | 25.00% |
GOODWILL AND IDENTIFIABLE INT97
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Net Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Amortizable net intangible assets (beginning of the period) | $ 94,974 | $ 67,851 |
Additions | 37,637 | |
Amortization expense | (12,850) | (9,715) |
Foreign currency translation | 336 | (799) |
Amortizable net intangible assets (end of the period) | 82,460 | 94,974 |
Private Client Group | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Amortizable net intangible assets (beginning of the period) | 52,936 | 18,182 |
Additions | 36,624 | |
Amortization expense | (6,001) | (1,870) |
Foreign currency translation | 91 | 0 |
Amortizable net intangible assets (end of the period) | 47,026 | 52,936 |
Capital Markets | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Amortizable net intangible assets (beginning of the period) | 27,937 | 32,532 |
Additions | 1,013 | |
Amortization expense | (4,845) | (5,619) |
Foreign currency translation | (15) | 11 |
Amortizable net intangible assets (end of the period) | 23,077 | 27,937 |
Asset Management | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Amortizable net intangible assets (beginning of the period) | 14,101 | 17,137 |
Additions | 0 | |
Amortization expense | (2,004) | (2,226) |
Foreign currency translation | 260 | (810) |
Amortizable net intangible assets (end of the period) | $ 12,357 | $ 14,101 |
GOODWILL AND IDENTIFIABLE INT98
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Intangible Assets, by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 118,923 | $ 129,402 |
Accumulated amortization | (36,463) | (34,428) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 99,749 | 99,470 |
Accumulated amortization | (31,098) | (22,895) |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 8,366 | 8,172 |
Accumulated amortization | (2,076) | (499) |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 1,630 | 12,630 |
Accumulated amortization | (706) | (10,280) |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 542 | 516 |
Accumulated amortization | (131) | (73) |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 3,336 | 3,314 |
Accumulated amortization | (1,551) | (612) |
Seller relationship agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 5,300 | 5,300 |
Accumulated amortization | $ (901) | $ (69) |
GOODWILL AND IDENTIFIABLE INT99
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Projected Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,018 | $ 11,056 | ||
2,019 | 10,591 | ||
2,020 | 9,812 | ||
2,021 | 9,056 | ||
2,022 | 8,436 | ||
Thereafter | 33,509 | ||
Total future amortization expense | $ 82,460 | $ 94,974 | $ 67,851 |
BANK DEPOSITS BANK DEPOSITS, Su
BANK DEPOSITS BANK DEPOSITS, Summary of Bank Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Bank deposits: | ||
Savings and money market accounts | $ 17,391,091 | $ 13,935,089 |
Certificates of deposit | 314,685 | 315,236 |
NOW accounts | 5,197 | 4,958 |
Demand deposits (non-interest-bearing) | 21,389 | 7,264 |
Total bank deposits | $ 17,732,362 | $ 14,262,547 |
Weighted-average rate [Abstract] | ||
Savings and money market accounts, weighted-average rate (in hundredths) | 0.14% | 0.05% |
Certificates of deposit, weighted-average rate (in hundredths) | 1.60% | 1.55% |
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% |
Total bank deposits, weighted-average rate (in hundredths) | 0.17% | 0.08% |
Related party deposit liabilities | $ 243,000 | $ 353,000 |
RJF parent cash deposited with RJ Bank | 192,000 | $ 350,000 |
Time deposit amount that exceeds FDIC insurance limit | $ 23,000 |
BANK DEPOSITS BANK DEPOSITS, Sc
BANK DEPOSITS BANK DEPOSITS, Schedule Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Scheduled maturities of certificates of deposit, denominations greater than or equal to $100,000 [Abstract] | ||
Three months or less | $ 8,704 | $ 14,252 |
Over three through six months | 4,692 | 14,191 |
Over six through twelve months | 34,005 | 15,452 |
Over one through two years | 38,713 | 32,816 |
Over two through three years | 48,082 | 43,730 |
Over three through four years | 21,819 | 58,425 |
Over four through five years | 50,805 | 26,173 |
Total certificates of deposit, denominations greater than or equal to 100,000 | 206,820 | 205,039 |
Scheduled maturities of certificates of deposit, denominations less than 100,000 [Abstract] | ||
Three months or less | 4,132 | 12,663 |
Over three through six months | 3,894 | 9,750 |
Over six through twelve months | 11,865 | 12,321 |
Over one through two years | 20,019 | 11,060 |
Over two through three years | 27,847 | 22,148 |
Over three through four years | 12,761 | 28,863 |
Over four through five years | 27,347 | 13,392 |
Total certificates of deposit, denominations less than 100,000 | $ 107,865 | $ 110,197 |
BANK DEPOSITS BANK DEPOSITS,102
BANK DEPOSITS BANK DEPOSITS, Summary of Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |||
Certificates of deposit | $ 4,325 | $ 5,402 | $ 5,839 |
Money market, savings and NOW accounts | 12,859 | 4,816 | 2,543 |
Total interest expense on deposits | $ 17,184 | $ 10,218 | $ 8,382 |
OTHER BORROWINGS, Schedule of O
OTHER BORROWINGS, Schedule of Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Other Borrowings [Abstract] | ||
Total other borrowings | $ 1,514,012 | $ 608,658 |
ClariVest Asset Management | ||
Other Borrowings [Abstract] | ||
Borrowings outstanding on lines of credit | 199 | 267 |
Secured Debt | ||
Other Borrowings [Abstract] | ||
Borrowings outstanding on lines of credit | 260,000 | 0 |
Unsecured Debt | ||
Other Borrowings [Abstract] | ||
Borrowings outstanding on lines of credit | 350,000 | 0 |
Federal Home Loan Bank Advances | ||
Other Borrowings [Abstract] | ||
Borrowings outstanding on lines of credit | 875,000 | 575,000 |
Mortgages | 5.70% mortgage notes payable on our headquarters office complex, due 2023 | ||
Other Borrowings [Abstract] | ||
Mortgage notes payable | $ 28,813 | $ 33,391 |
OTHER BORROWINGS OTHER BORROWIN
OTHER BORROWINGS OTHER BORROWINGS, Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Aug. 31, 2015 | |
RJF Credit Facility | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreement maximum borrowing capacity | $ 300,000,000 | ||
Borrowings outstanding on lines of credit | $ 0 | $ 0 | |
Revolving credit agreement commitment fee percentage | 0.20% | ||
Federal Home Loan Bank Advances | |||
Line of Credit Facility [Line Items] | |||
Borrowings outstanding on lines of credit | $ 875,000,000 | 575,000,000 | |
Federal Home Loan Bank Advances | FHLB Advance Maturing September 2018 | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | 550,000,000 | ||
Federal Home Loan Bank Advances | FHLB Advance Maturing June 2018 | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | 850,000,000 | ||
Federal Home Loan Bank Advances | FHLB Advance Maturing October 2020 | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 25,000,000 | $ 25,000,000 | |
Interest rate (in hundredths) | 3.40% | 3.40% | |
Mortgages | 5.70% mortgage notes payable on our headquarters office complex, due 2023 | |||
Line of Credit Facility [Line Items] | |||
Interest rate (in hundredths) | 5.70% | ||
Weighted Average | Federal Home Loan Bank Advances | |||
Line of Credit Facility [Line Items] | |||
FHLB advances weighted average interest rate | 1.41% | 1.01% | |
ClariVest Asset Management | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreement maximum borrowing capacity | $ 500,000 | ||
Borrowings outstanding on lines of credit | $ 199,000 | $ 267,000 | |
ClariVest Asset Management | Weighted Average | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreements, interest rates during the year | 4.91% | ||
Prime Rate | ClariVest Asset Management | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreement basis spread on variable rate | 1.00% | ||
LIBOR | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreement basis spread on variable rate | 1.50% | ||
United States | Minimum | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreements, interest rates during the year | 0.35% | ||
United States | Maximum | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreements, interest rates during the year | 3.41% | ||
Canada | |||
Line of Credit Facility [Line Items] | |||
Revolving credit agreements, interest rates during the year | 1.75% |
OTHER BORROWINGS, Schedule of F
OTHER BORROWINGS, Schedule of Fiscal Maturity of Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Other Borrowings | $ 1,514,012 | $ 608,658 |
Other Borrowings | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,018 | 615,045 | |
2,019 | 855,130 | |
2,020 | 5,430 | |
2,021 | 30,748 | |
2,022 | 6,084 | |
Thereafter | 1,575 | |
Other Borrowings | $ 1,514,012 |
SENIOR NOTES PAYABLE, Schedule
SENIOR NOTES PAYABLE, Schedule of Senior Notes Payable (Details) - USD ($) | 12 Months Ended | |||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 25, 2017 | May 31, 2017 | Mar. 15, 2017 | Jul. 30, 2016 | Mar. 31, 2012 | |
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt, unamortized debt issuance costs | $ 45,746,000 | $ 0 | $ 0 | |||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 1,550,000,000 | 1,700,000,000 | ||||||
Unaccreted premium/(discount) | 11,905,000 | (1,601,000) | ||||||
Unamortized debt issuance costs | (13,066,000) | (17,812,000) | ||||||
Total senior notes payable | 1,548,839,000 | 1,680,587,000 | ||||||
Senior Notes | 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 | Senior Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 500,000,000 | 500,000,000 | ||||||
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 | Senior Notes Due 2046 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 800,000,000 | 300,000,000 | ||||||
Aggregate principal amount of the notes redeemed | $ 500,000,000 | $ 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 | Senior Notes Due 2042 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 0 | 350,000,000 | ||||||
Aggregate principal amount of the notes redeemed | $ 350,000,000 | |||||||
Interest rate (in hundredths) | 6.90% | |||||||
Loss on extinguishment of debt, unamortized debt issuance costs | 8,000,000 | |||||||
Senior Notes | Senior Notes Due 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 0 | $ 300,000,000 | ||||||
Aggregate principal amount of the notes redeemed | $ 300,000,000 | |||||||
Interest rate (in hundredths) | 8.60% | |||||||
Basis spread used in determining redemption price (in basis points) | 0.50% | |||||||
Loss on extinguishment of debt, unamortized debt issuance costs | $ (37,000,000) |
INCOME TAXES, Income Tax Alloca
INCOME TAXES, Income Tax Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Recorded in: | |||
Net income including noncontrolling interests | $ 289,111 | $ 271,293 | $ 296,034 |
Equity, arising from cash flow hedges recorded through OCI | 14,239 | (7,252) | (2,850) |
Equity, arising from cumulative currency translation adjustments and net investment hedges recorded through OCI | (7,427) | (3,525) | 31,078 |
Equity, arising from available-for-sale securities recorded through OCI | 856 | (3,295) | (2,246) |
Equity, arising from compensation expense for tax purposes which was (in excess of)/less than amounts recognized for financial reporting purposes | 0 | (35,121) | 8,115 |
Total | $ 296,779 | $ 222,100 | $ 330,131 |
INCOME TAXES, Provision (Benefi
INCOME TAXES, Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current: | |||
Federal | $ 255,555 | $ 287,350 | $ 266,359 |
State and local | 37,553 | 32,101 | 48,130 |
Foreign | 7,620 | 10,640 | 5,007 |
Current provision (benefit) for income taxes | 300,728 | 330,091 | 319,496 |
Deferred: | |||
Federal | (11,316) | (51,383) | (20,567) |
State and local | (959) | (6,267) | (5,127) |
Foreign | 658 | (1,148) | 2,232 |
Deferred provision (benefit) for income taxes | (11,617) | (58,798) | (23,462) |
Provision for income taxes | $ 289,111 | $ 271,293 | $ 296,034 |
INCOME TAXES, Effective Income
INCOME TAXES, Effective Income Tax Reconciliation (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
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 | 2.70% | 1.70% | 3.60% |
Tax-exempt interest income | (1.00%) | (0.90%) | (0.50%) |
Excess tax benefits related to share-based compensation | (2.50%) | (0.00%) | (0.00%) |
(Income)/losses associated with COLI which are not (subject to tax)/tax deductible | (1.70%) | (1.10%) | 0.40% |
Federal tax credits | (1.60%) | (1.00%) | (0.90%) |
Other, net | 0.30% | 0.20% | (0.50%) |
Total provision for income tax | 31.20% | 33.90% | 37.10% |
Excess state tax benefit related to share-based compensation excluded from effective tax rate reconciliation | (0.20%) |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. and foreign components of income before income taxes [Abstract] | |||
U.S. | $ 915,711 | $ 765,421 | $ 782,146 |
Foreign | 9,635 | 35,222 | 16,028 |
Income excluding noncontrolling interests and before provision for income taxes | $ 925,346 | $ 800,643 | $ 798,174 |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Deferred compensation | $ 235,171 | $ 192,397 |
Allowances for loan losses and reserves for unfunded commitments | 74,909 | 78,552 |
Unrealized loss associated with foreign currency translations | 1,928 | 22,184 |
Unrealized loss associated with available-for-sale securities | 3,342 | 4,314 |
Accrued expenses | 41,545 | 44,419 |
Other | 13,665 | 24,897 |
Total gross deferred tax assets | 370,560 | 366,763 |
Less: valuation allowance | (9) | (9) |
Total deferred tax assets | 370,551 | 366,754 |
Deferred tax liabilities: | ||
Partnership investments | (6,326) | (8,518) |
Goodwill and other intangibles | (38,364) | (26,384) |
Undistributed earnings of foreign subsidiaries | 0 | (9,636) |
Other | (12,375) | (192) |
Total deferred tax liabilities | (57,065) | (44,730) |
Net deferred tax assets | 313,486 | 322,024 |
Cumulative amount of undistributed earnings attributable to foreign subsidiaries | 219,000 | |
Income tax receivable current | 102,000 | 48,000 |
Accrued income taxes, current | $ 23,000 | $ 29,000 |
INCOME TAXES, Unrecognized Tax
INCOME TAXES, Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax penalties and interest accrued | $ 3,000 | $ 4,000 | |
Changes in the liability for unrecognized tax benefits [Roll Forward] | |||
Balance for uncertain tax positions at beginning of year | 22,173 | 22,454 | $ 15,804 |
Increases for tax positions related to the current year | 3,238 | 6,496 | 4,954 |
Increases for tax positions related to prior years | 438 | 1,284 | 3,466 |
Decreases for tax positions related to prior years | (717) | (1,592) | (204) |
Decreases due to lapsed statute of limitations | (2,497) | (1,447) | (1,566) |
Decreases related to settlements | (2,629) | (5,022) | 0 |
Balance for uncertain tax positions at end of year | 20,006 | 22,173 | 22,454 |
Unrecognized tax benefits that would impact effective tax rate | $ 15,000 | $ 16,000 | $ 15,000 |
COMMITMENTS, CONTINGENCIES A113
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017USD ($)commitment | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Underwriting commitment | |||
Commitments [Line Items] | |||
Number of open underwriting commitments | commitment | 2 | ||
Loans to financial advisors and certain key revenue producers, not yet accepted | |||
Commitments [Line Items] | |||
Amount of commitment | $ 139 | ||
Unfunded loans to financial advisors and certain key revenue producers, accepted | |||
Commitments [Line Items] | |||
Amount of commitment | 59 | ||
RJ Bank syndicated loans | |||
Commitments [Line Items] | |||
Amount of purchased syndicated loans not yet settled | $ 162 | ||
Settlement of purchased syndicated loans (in days) | 90 days | ||
Commitment to lend to RJTCF | |||
Commitments [Line Items] | |||
Amount of commitment | $ 225 | ||
Cash funded to invest in loans or investments in project partnerships | $ 42 | ||
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 | $ 36 | ||
Internally sponsored private equity limited partnership commitment | |||
Commitments [Line Items] | |||
Unfunded commitments in which we control the general partner | 18 | ||
Lease agreements commitments | |||
Commitments [Line Items] | |||
Rental expense incurred under leases | 115 | $ 97 | $ 89 |
Forward GNMA MBS purchase commitments | |||
Commitments [Line Items] | |||
Amount of commitment | $ 793 | ||
Expected time of purchase (in days) | 90 days | ||
Subsidiary of RJ Bank | Commitment to lend to RJTCF | |||
Commitments [Line Items] | |||
Amount of commitment | $ 80 | ||
Amount of commitment fulfilled | $ 61 | ||
Contingent Consideration, Earn-Out Agreement | Minimum | The Producers Choice LLC | |||
Commitments [Line Items] | |||
Contingent consideration arrangements, range of outcomes, measurement period | 3 years | ||
Contingent Consideration, Earn-Out Agreement | Maximum | The Producers Choice LLC | |||
Commitments [Line Items] | |||
Contingent consideration arrangements, range of outcomes, measurement period | 5 years |
COMMITMENTS, CONTINGENCIES A114
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Long-term Lease Agreement Maturities (Details) - Lease agreements commitments $ in Thousands | Sep. 30, 2017USD ($) |
Operating Leases Fiscal Year Maturity: | |
2,018 | $ 96,756 |
2,019 | 89,711 |
2,020 | 78,164 |
2,021 | 61,959 |
2,022 | 42,846 |
Thereafter | 79,491 |
Total operating lease obligation | $ 448,927 |
COMMITMENTS, CONTINGENCIES A115
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Guarantor Obligations (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Guarantees [Abstract] | ||
Low-income housing tax credit fund financing asset | $ 15,786,000 | $ 20,543,000 |
Amount of liability related to the low-income housing tax credit fund financing asset | 16,000,000 | 21,000,000 |
Project partnerships sold guarantee | ||
Guarantees [Abstract] | ||
Current exposure of guarantees | 3,000,000 | |
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 | $ 17,000,000 | |
Number of years under the guarantee to deliver a certain amount of tax credits and other tax benefits (in years) | 5 years | |
Mortgages | 5.70% mortgage notes payable on our headquarters office complex, due 2023 | ||
Guarantees [Abstract] | ||
Mortgage notes payable | $ 28,813,000 | $ 33,391,000 |
COMMITMENTS, CONTINGENCIES A116
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Loss Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Loss Contingencies [Line Items] | ||
Indemnification asset | $ 26,160 | $ 35,325 |
Pending Litigation | Various Lawsuits | ||
Loss Contingencies [Line Items] | ||
Estimate range of possible loss, portion not accrued | 65,000 | |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Indemnification liability for potential loss | 26,000 | |
Minimum | Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | 12,000 | |
Maximum | Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 44,000 |
ACCUMULATED OTHER COMPREHENS117
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS), Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | ||
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] | $ 1,684 | $ (5,576) | $ (3,325) |
Unrealized gain/(loss) on currency translations, net of the impact of net investment hedges | [1] | 15,618 | 2,179 | (30,640) |
Unrealized gain/(loss) on cash flow hedges | [1] | 23,232 | (11,833) | (4,650) |
Net other comprehensive income/(loss) for the year, net of tax | $ 40,534 | $ (15,230) | $ (38,615) | |
[1] | All components of other comprehensive income/(loss), net of tax, are attributable to Raymond James Financial, Inc. |
ACCUMULATED OTHER COMPREHENS118
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS), AOCI Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | $ 4,916,545 | ||
Net other comprehensive income/(loss) for the year, net of tax | 40,534 | $ (15,230) | $ (38,615) |
Accumulated other comprehensive income (loss) as of year end | 5,581,713 | 4,916,545 | |
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 | 86,482 | 93,203 | |
Other comprehensive income/(loss) before reclassifications and taxes | (41,997) | (10,743) | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 0 | 0 | |
Pre-tax net other comprehensive income/(loss) | (41,997) | (10,743) | |
Income tax effect | 15,716 | 4,022 | |
Net other comprehensive income/(loss) for the year, net of tax | (26,281) | (6,721) | |
Accumulated other comprehensive income (loss) as of year end | 60,201 | 86,482 | 93,203 |
Currency translations | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | (121,576) | (130,476) | |
Other comprehensive income/(loss) before reclassifications and taxes | 43,541 | 9,397 | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 6,647 | 0 | |
Pre-tax net other comprehensive income/(loss) | 50,188 | 9,397 | |
Income tax effect | (8,289) | (497) | |
Net other comprehensive income/(loss) for the year, net of tax | 41,899 | 8,900 | |
Accumulated other comprehensive income (loss) as of year end | (79,677) | (121,576) | (130,476) |
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 | (35,094) | (37,273) | |
Other comprehensive income/(loss) before reclassifications and taxes | 1,544 | (1,346) | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 6,647 | 0 | |
Pre-tax net other comprehensive income/(loss) | 8,191 | (1,346) | |
Income tax effect | 7,427 | 3,525 | |
Net other comprehensive income/(loss) for the year, net of tax | 15,618 | 2,179 | |
Accumulated other comprehensive income (loss) as of year end | (19,476) | (35,094) | (37,273) |
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 | (4,156) | 1,420 | |
Other comprehensive income/(loss) before reclassifications and taxes | 443 | (9,231) | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 2,097 | 360 | |
Pre-tax net other comprehensive income/(loss) | 2,540 | (8,871) | |
Income tax effect | (856) | 3,295 | |
Net other comprehensive income/(loss) for the year, net of tax | 1,684 | (5,576) | |
Accumulated other comprehensive income (loss) as of year end | (2,472) | (4,156) | 1,420 |
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 | (16,483) | (4,650) | |
Other comprehensive income/(loss) before reclassifications and taxes | 31,843 | (25,535) | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 5,628 | 6,450 | |
Pre-tax net other comprehensive income/(loss) | 37,471 | (19,085) | |
Income tax effect | (14,239) | 7,252 | |
Net other comprehensive income/(loss) for the year, net of tax | 23,232 | (11,833) | |
Accumulated other comprehensive income (loss) as of year end | 6,749 | (16,483) | (4,650) |
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 | (55,733) | (40,503) | |
Other comprehensive income/(loss) before reclassifications and taxes | 33,830 | (36,112) | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 14,372 | 6,810 | |
Pre-tax net other comprehensive income/(loss) | 48,202 | (29,302) | |
Income tax effect | (7,668) | 14,072 | |
Net other comprehensive income/(loss) for the year, net of tax | 40,534 | (15,230) | |
Accumulated other comprehensive income (loss) as of year end | $ (15,199) | $ (55,733) | $ (40,503) |
ACCUMULATED OTHER COMPREHENS119
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS), Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Available-for-sale securities | $ (91,021) | $ (81,690) | $ (96,905) |
Interest expense | 153,778 | 116,056 | 106,074 |
Other expense | 354,138 | 201,364 | 149,266 |
Provision for income taxes | 289,111 | 271,293 | 296,034 |
Net income attributable to Raymond James Financial, Inc. | (636,235) | (529,350) | $ (502,140) |
Currency translations | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense | 6,647 | ||
Accumulated other comprehensive (loss) income | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total before tax | 14,372 | 6,810 | |
Provision for income taxes | (5,460) | (2,590) | |
Net income attributable to Raymond James Financial, Inc. | 4,220 | ||
Available for sale securities | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income attributable to Raymond James Financial, Inc. | 8,912 | ||
Available for sale securities | Reclassification out of Accumulated Other Comprehensive Income | Auction rate securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Available-for-sale securities | 1,458 | 87 | |
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] | |||
Available-for-sale securities | 639 | 273 | |
Interest rate contracts: | Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ 5,628 | $ 6,450 |
INTEREST INCOME AND INTEREST120
INTEREST INCOME AND INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income: | |||
Margin balances | $ 85,699 | $ 68,712 | $ 67,573 |
Assets segregated pursuant to regulations and other segregated assets | 37,270 | 22,287 | 13,792 |
Bank loans, net of unearned income | 572,171 | 487,366 | 405,578 |
Available-for-sale securities | 27,946 | 7,596 | 5,100 |
Trading instruments | 21,068 | 19,362 | 19,450 |
Securities loaned | 14,049 | 8,777 | 12,036 |
Loans to financial advisors | 13,333 | 8,207 | 7,056 |
Corporate cash and all other | 30,590 | 18,090 | 12,697 |
Total interest income | 802,126 | 640,397 | 543,282 |
Interest expense: | |||
Brokerage client liabilities | 4,884 | 2,084 | 940 |
Retail bank deposits | 17,184 | 10,218 | 8,382 |
Trading instruments sold but not yet purchased | 6,138 | 5,035 | 4,503 |
Securities borrowed | 6,690 | 3,174 | 5,237 |
Borrowed funds | 16,559 | 12,957 | 6,079 |
Senior notes | 94,665 | 78,533 | 76,088 |
Other | 7,658 | 4,055 | 4,845 |
Total interest expense | 153,778 | 116,056 | 106,074 |
Net interest income | 648,348 | 524,341 | 437,208 |
Bank loan loss provision | (12,987) | (28,167) | (23,570) |
Net interest income after bank loan loss provision | $ 635,361 | $ 496,174 | $ 413,638 |
SHARE-BASED AND OTHER COMPEN121
SHARE-BASED AND OTHER COMPENSATION, ESOP (Details) - USD ($) shares in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
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 (in shares) | 4,690 | 4,873 |
Market value of common stock held by the ESOP | $ 396,000,000 | |
Value of unearned (not yet vested) shares held by ESOP plan participants | $ 4,000,000 |
SHARE-BASED AND OTHER COMPEN122
SHARE-BASED AND OTHER COMPENSATION, Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Retirement Benefits [Abstract] | |||
Compensation Expense | $ 131 | $ 117 | $ 117 |
SHARE-BASED AND OTHER COMPEN123
SHARE-BASED AND OTHER COMPENSATION, 2012 Stock Incentive Plan (Details) | Sep. 30, 2017planshares |
Share-based compensation plans [Abstract] | |
Number of previous share based compensation plans | 6 |
2012 Stock Incentive Plan | |
Share-based compensation plans [Abstract] | |
Number of share based compensation plans | 1 |
Number of shares available for grant (in shares) | shares | 40,244,000 |
SHARE-BASED AND OTHER COMPEN124
SHARE-BASED AND OTHER COMPENSATION, Stock Option Awards (Details) - 2012 Stock Incentive Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restricted Stock and Restricted Stock Units (RSUs) | |||
Expense and income tax benefits [Abstract] | |||
Excess tax benefit (reduction of prior tax benefit) from share-based payments | $ 22,000 | ||
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] | |||
Excess tax benefit (reduction of prior tax benefit) from share-based payments | $ 3,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield (in hundredths) | 1.03% | 1.41% | 1.30% |
Expected volatility (in hundredths) | 30.91% | 28.85% | 29.55% |
Risk-free interest rate (in hundredths) | 1.81% | 1.65% | 1.66% |
Expected lives (in years) | 5 years 4 months 10 days | 5 years 4 months 14 days | 5 years 5 months 23 days |
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 | ||
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 | ||
Employees and Independent Contractor Financial Advisors | Employee and Nonemployee Stock Option | |||
Expense and income tax benefits [Abstract] | |||
Total share-based expense | $ 13,597 | $ 11,648 | $ 10,196 |
Income tax benefit related to share-based expense | $ 1,783 | $ 1,181 | $ 821 |
SHARE-BASED AND OTHER COMPEN125
SHARE-BASED AND OTHER COMPENSATION, Stock Option Activity (Details) - 2012 Stock Incentive Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock Options | |||
Options for shares (in shares): | |||
Outstanding - beginning of period | 3,710 | ||
Granted | 224 | ||
Exercised | (1,051) | ||
Forfeited | (47) | ||
Outstanding - end of period | 2,836 | 3,710 | |
Weighted-average exercise price (in dollars per share): | |||
Outstanding - beginning of period | $ 44.88 | ||
Granted | 72.09 | ||
Exercised | 32.22 | ||
Forfeited | 51.62 | ||
Outstanding - end of period | $ 51.63 | $ 44.88 | |
Weighted-average remaining contractual term (in years) | 3 years 7 months | ||
Aggregated intrinsic value | $ 92,762 | ||
Exercisable, outstanding (in shares) | 451 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 41.62 | ||
Exercisable, weighted average remaining contractual term (in years) | 2 years 4 months 15 days | ||
Exercisable, aggregate intrinsic value | $ 19,246 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted-average grant date fair value per option (in dollars per share) | $ 19.96 | $ 13.96 | $ 14.36 |
Total intrinsic value of stock options exercised | $ 42,178 | $ 16,273 | $ 29,574 |
Total grant date fair value of stock options vested | 10,768 | $ 7,690 | $ 10,483 |
Pre-tax expense note yet recognized [Abstract] | |||
Cash received from stock option exercises | 31,000 | ||
Employees | Stock Options | |||
Pre-tax expense note yet recognized [Abstract] | |||
Nonvested awards, compensation cost not yet recognized | $ 14,655 | ||
Remaining weighted-average period (in years) | 2 years 6 months | ||
Independent contractor financial advisors | Nonemployee Stock Option | |||
Pre-tax expense note yet recognized [Abstract] | |||
Nonvested awards, compensation cost not yet recognized | $ 2,904 | ||
Remaining weighted-average period (in years) | 3 years |
SHARE-BASED AND OTHER COMPEN126
SHARE-BASED AND OTHER COMPENSATION, Restricted Stock Award (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
2012 Stock Incentive Plan | Restricted Stock and Restricted Stock Units (RSUs) | |||
Weighted-average grant date fair value (in dollars per share): | |||
Excess tax benefit (reduction of prior tax benefit) from share-based payments | $ 22,000,000 | ||
Non-Employee Board of Directors Plan | Restricted Stock | |||
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 | Restricted Stock | |||
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) | 4,807,000 | ||
Granted (in shares) | 1,637,000 | ||
Vested (in shares) | (1,587,000) | ||
Forfeited (in shares) | (113,000) | ||
Nonvested - end of period (in shares) | 4,744,000 | 4,807,000 | |
Weighted-average grant date fair value (in dollars per share): | |||
Nonvested - beginning of period (in dollars per share) | $ 47.71 | ||
Granted (in dollars per share) | 72.39 | ||
Vested (in dollars per share) | 38.68 | ||
Forfeited (in dollars per share) | 60.11 | ||
Nonvested - end of period (in dollars per share) | $ 58.94 | $ 47.71 | |
Total share-based expense | $ 78,624,000 | $ 62,674,000 | $ 57,716,000 |
Income tax benefits related to share-based expense | 27,658,000 | 21,979,000 | 20,516,000 |
Unrecognized pre-tax expense | $ 125,000,000 | ||
Weighted-average period of recognition (in years) | 3 years 1 month 6 days | ||
Total fair value of shares vested under the plan | $ 59,000,000 | ||
Employees and Directors | 2012 Stock Incentive Plan | Restricted Stock | 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 | Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted period of awards | 5 years | ||
Employees and Independent Contractor Financial Advisors | 2012 Stock Incentive Plan | Employee and Nonemployee Stock Option | |||
Weighted-average grant date fair value (in dollars per share): | |||
Total share-based expense | $ 13,597,000 | $ 11,648,000 | $ 10,196,000 |
Independent contractor financial advisors | 2012 Stock Incentive Plan | Restricted Stock Units (RSUs) | |||
Weighted-average grant date fair value (in dollars per share): | |||
Restricted stock outstanding (in shares) | 0 | ||
Business Combination, Acquisition Related Expense | 2012 Stock Incentive Plan | Restricted Stock and Restricted Stock Units (RSUs) | |||
Weighted-average grant date fair value (in dollars per share): | |||
Total share-based expense | $ 5,000,000 |
SHARE-BASEAD AND OTHER COMPENSA
SHARE-BASEAD AND OTHER COMPENSATION, Deutsche Bank Restricted Stock Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 06, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Prepaid compensation asset, weighted average amortization period | 5 years | |||
Deutsche WM | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated weighted-average fair value per common share (in dollars per share) | $ 17.28 | $ 14.90 | ||
Prepaid compensation expense | $ 9,899 | $ 15,170 | ||
Shares/Units (in shares): | ||||
Nonvested - beginning of period (in shares) | 1,358 | |||
DB rights offering (in shares) | 163 | |||
Forfeited (in shares) | (28) | |||
Nonvested - end of period (in shares) | 1,493 | 1,358 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Income tax expense | $ 4,963 | $ 799 | ||
Minimum | Deutsche WM | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted period of awards | 3 years | |||
Maximum | Deutsche WM | Restricted Stock Units (RSUs) | ||||
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 Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Prepaid compensation asset, weighted average amortization period | 2 years | |||
Compensation, commissions and benefits expense | Deutsche WM | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Amortization of DBRSU prepaid compensation asset | $ 5,270 | 355 | ||
Increase/(decrease) in fair value of derivative liability | 8,031 | (2,457) | ||
Net expense/(gain) before tax | 13,301 | (2,102) | ||
Derivatives not designated as hedging instruments | Deutsche bank restricted stock derivative | Compensation, commissions and benefits expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative contracts liability, gross | 26,000 | |||
Derivatives not designated as hedging instruments | Compensation, commissions and benefits expense | Deutsche bank restricted stock derivative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Increase/(decrease) in fair value of derivative liability | $ 5,648 | $ (2,457) | $ 0 |
SHARE-BASED AND OTHER COMPEN128
SHARE-BASED AND OTHER COMPENSATION, Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
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) | 343,000 | 557,000 | 430,000 |
Discount from market value (in hundredths) | 15.00% | ||
Total share-based expense | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 |
REGULATORY CAPITAL REQUIREME129
REGULATORY CAPITAL REQUIREMENTS (Details) CAD in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017CAD | Sep. 30, 2017USD ($) | Sep. 30, 2016CAD | Sep. 30, 2016USD ($) | |
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% | |||
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 | ||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) [Abstract] | ||||
Actual, amount | $ 5,081,335 | $ 4,421,956 | ||
Actual, ratio (in hundredths) | 23.00% | 23.00% | 20.60% | 20.60% |
Requirement for capital adequacy purposes, amount | $ 994,950 | $ 966,341 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 1,437,150 | $ 1,395,825 | ||
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 | $ 5,081,335 | $ 4,421,956 | ||
Actual, ratio (in hundredths) | 23.00% | 23.00% | 20.60% | 20.60% |
Requirement for capital adequacy purposes, amount | $ 1,326,600 | $ 1,288,454 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% | 6.00% | 6.00% |
To be well capitalized under regulatory provisions, amount | $ 1,768,800 | $ 1,717,939 | ||
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 | $ 5,293,331 | $ 4,636,009 | ||
Actual ratio (in hundredths) | 23.90% | 23.90% | 21.60% | 21.60% |
Requirement for capital adequacy purposes, amount | $ 1,768,800 | $ 1,717,939 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | 8.00% | 8.00% |
To be well capitalized under regulatory provisions, amount | $ 2,211,000 | $ 2,147,424 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% | 10.00% | 10.00% |
Tier I Leverage [Abstract] | ||||
Actual, amount | $ 5,081,335 | $ 4,421,956 | ||
Actual, ratio (in hundredths) | 15.00% | 15.00% | 15.00% | 15.00% |
Requirement for capital adequacy purposes, amount | $ 1,359,168 | $ 1,177,840 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | 4.00% | 4.00% |
To be well capitalized under regulatory provisions, amount | $ 1,698,960 | $ 1,472,300 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 5.00% | 5.00% | 5.00% | 5.00% |
RJ Bank | ||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) [Abstract] | ||||
Actual, amount | $ 1,821,306 | $ 1,675,890 | ||
Actual, ratio (in hundredths) | 12.50% | 12.50% | 12.70% | 12.70% |
Requirement for capital adequacy purposes, amount | $ 654,901 | $ 592,864 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 945,968 | $ 856,360 | ||
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 | $ 1,821,306 | $ 1,675,890 | ||
Actual, ratio (in hundredths) | 12.50% | 12.50% | 12.70% | 12.70% |
Requirement for capital adequacy purposes, amount | $ 873,201 | $ 790,486 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% | 6.00% | 6.00% |
To be well capitalized under regulatory provisions, amount | $ 1,164,268 | $ 1,053,981 | ||
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 | $ 2,003,461 | $ 1,841,112 | ||
Actual ratio (in hundredths) | 13.80% | 13.80% | 14.00% | 14.00% |
Requirement for capital adequacy purposes, amount | $ 1,164,268 | $ 1,053,981 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% | 8.00% | 8.00% |
To be well capitalized under regulatory provisions, amount | $ 1,455,335 | $ 1,317,476 | ||
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% | 10.00% | 10.00% |
Tier I Leverage [Abstract] | ||||
Actual, amount | $ 1,821,306 | $ 1,675,890 | ||
Actual, ratio (in hundredths) | 8.90% | 8.90% | 9.90% | 9.90% |
Requirement for capital adequacy purposes, amount | $ 816,304 | $ 675,939 | ||
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% | 4.00% | 4.00% |
To be well capitalized under regulatory provisions, amount | $ 1,020,379 | $ 844,924 | ||
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 | 34,488 | $ 27,013 | ||
Less: required net capital | (250) | (250) | ||
Excess net capital | $ 34,238 | $ 26,763 | ||
Raymond James and Associates Inc | ||||
Alternative Method Elected [Abstract] | ||||
Net capital as a percent of aggregate debit items (in hundredths) | 21.37% | 21.37% | 19.61% | 19.61% |
Net capital | $ 589,420 | $ 512,594 | ||
Less: required net capital | (55,164) | (52,287) | ||
Excess net capital | $ 534,256 | $ 460,307 | ||
Raymond James Ltd | ||||
Risk adjusted capital of Canadian broker-dealer subsidiary [Abstract] | ||||
Risk adjusted capital before minimum | CAD | CAD 108,985 | CAD 77,110 | ||
Less: required minimum capital | CAD | (250) | (250) | ||
Risk adjusted capital | CAD | CAD 108,735 | CAD 76,860 |
FINANCIAL INSTRUMENTS WITH O130
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) $ in Thousands, CAD in Millions | 12 Months Ended | ||
Sep. 30, 2017CAD | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Schedule of Off-Balance Sheet Risks [Line Items] | |||
Standby letters of credit | $ 39,670 | $ 29,686 | |
Open-end consumer lines of credit (primarily SBL) | 5,323,003 | 3,616,933 | |
Commercial lines of credit | 1,673,272 | 1,430,630 | |
Unfunded loan commitments | 386,950 | $ 354,556 | |
Standby letters of credit expiration term (or less) | 1 year | ||
Letters of credit amount outstanding | $ 40,000 | ||
Forward foreign exchange contracts | |||
Schedule of Off-Balance Sheet Risks [Line Items] | |||
Notional amount of foreign currency derivative purchase contracts | CAD | CAD 3 | ||
Notional amount of foreign currency derivative sale contracts | CAD | CAD 5 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income for basic earnings per common share: | |||
Net income attributable to Raymond James Financial, Inc. | $ 636,235 | $ 529,350 | $ 502,140 |
Less allocation of earnings and dividends to participating securities | (1,376) | (1,256) | (1,610) |
Net income attributable to RJF common shareholders | 634,859 | 528,094 | 500,530 |
Income for diluted earnings per common share: | |||
Net income attributable to Raymond James Financial, Inc. | 636,235 | 529,350 | 502,140 |
Less allocation of earnings and dividends to participating securities | (1,350) | (1,236) | (1,580) |
Net income attributable to RJF common shareholders | $ 634,885 | $ 528,114 | $ 500,560 |
Common shares: | |||
Average common shares in basic computation (in shares) | 143,275 | 141,773 | 142,548 |
Dilutive effect of outstanding stock options and certain restricted stock units (in shares) | 3,372 | 2,740 | 3,391 |
Average common shares used in diluted computation (in shares) | 146,647 | 144,513 | 145,939 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 4.43 | $ 3.72 | $ 3.51 |
Diluted (in dollars per share) | $ 4.33 | $ 3.65 | $ 3.43 |
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive (in shares) | 1,657 | 3,255 | 2,849 |
Participating securities [Abstract] | |||
Participating securities (in shares) | 317 | 346 | 464 |
Dividends per common share declared and paid [Abstract] | |||
Dividends per common share - declared (in dollars per share) | $ 0.88 | $ 0.80 | $ 0.72 |
Dividends per common share - paid (in dollars per share) | $ 0.86 | $ 0.78 | $ 0.70 |
SEGMENT INFORMATION, Informatio
SEGMENT INFORMATION, Information Concerning Operations (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Segment Reporting Information, Additional Information: | |||
Number of operating segments | segment | 5 | ||
Revenues: | |||
Total revenues | $ 6,524,875 | $ 5,521,120 | $ 5,309,680 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 925,346 | 800,643 | 798,174 |
Net income attributable to noncontrolling interests | 2,632 | 11,301 | 16,438 |
Income including noncontrolling interests and before provision for income taxes | 927,978 | 811,944 | 814,612 |
Net interest income (expense): | |||
Net interest income | 648,348 | 524,341 | 437,208 |
Total assets: | |||
Total assets | 34,883,456 | 31,486,976 | |
Goodwill and Intangible Assets: | |||
Goodwill | 410,723 | 408,072 | 307,635 |
Private Client Group | |||
Goodwill and Intangible Assets: | |||
Goodwill | 276,713 | 275,521 | 186,733 |
Capital Markets | |||
Goodwill and Intangible Assets: | |||
Goodwill | 134,010 | 132,551 | 120,902 |
Operating Segments | Private Client Group | |||
Revenues: | |||
Total revenues | 4,437,588 | 3,626,718 | 3,519,558 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 372,950 | 340,564 | 342,243 |
Net interest income (expense): | |||
Net interest income | 136,756 | 97,042 | 88,842 |
Total assets: | |||
Total assets | 9,967,320 | 10,317,681 | |
Operating Segments | Capital Markets | |||
Revenues: | |||
Total revenues | 1,034,235 | 1,017,151 | 976,580 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 141,236 | 139,173 | 107,009 |
Net interest income (expense): | |||
Net interest income | 6,543 | 9,432 | 9,589 |
Total assets: | |||
Total assets | 2,396,033 | 2,957,319 | |
Operating Segments | Asset Management | |||
Revenues: | |||
Total revenues | 487,735 | 404,421 | 392,378 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 171,736 | 132,158 | 135,050 |
Net interest income (expense): | |||
Net interest income | 623 | 183 | 127 |
Total assets: | |||
Total assets | 151,111 | 133,190 | |
Operating Segments | RJ Bank | |||
Revenues: | |||
Total revenues | 627,845 | 517,243 | 425,988 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 409,303 | 337,296 | 278,721 |
Net interest income (expense): | |||
Net interest income | 574,796 | 478,690 | 403,578 |
Total assets: | |||
Total assets | 20,611,898 | 16,613,391 | |
Operating Segments | Other | |||
Revenues: | |||
Total revenues | 65,498 | 46,291 | 66,967 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | (169,879) | (148,548) | (64,849) |
Net interest income (expense): | |||
Net interest income | (70,370) | (61,006) | (64,928) |
Total assets: | |||
Total assets | 1,757,094 | 1,465,395 | |
Intersegment eliminations | |||
Revenues: | |||
Total revenues | $ (128,026) | $ (90,704) | $ (71,791) |
SEGMENT INFORMATION, Classified
SEGMENT INFORMATION, Classified by Major Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | |||
Total revenues | $ 6,524,875 | $ 5,521,120 | $ 5,309,680 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 925,346 | 800,643 | 798,174 |
Total assets: | |||
Total assets | 34,883,456 | 31,486,976 | |
Goodwill and Intangible Assets: | |||
Goodwill | 410,723 | 408,072 | 307,635 |
United States | |||
Revenues: | |||
Total revenues | 6,057,971 | 5,119,536 | 4,912,820 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 919,324 | 778,351 | 784,517 |
Total assets: | |||
Total assets | 32,200,852 | 29,112,182 | |
Goodwill and Intangible Assets: | |||
Goodwill | 356,000 | 356,000 | |
Canada | |||
Revenues: | |||
Total revenues | 354,685 | 278,652 | 279,200 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 14,138 | 20,243 | 17,770 |
Total assets: | |||
Total assets | 2,592,480 | 2,275,056 | |
Goodwill and Intangible Assets: | |||
Goodwill | 45,000 | 43,000 | |
Europe | |||
Revenues: | |||
Total revenues | 107,831 | 85,718 | 85,289 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | (3,577) | (3,791) | (6,852) |
Total assets: | |||
Total assets | 81,090 | 61,067 | |
Goodwill and Intangible Assets: | |||
Goodwill | 10,000 | 9,000 | |
Other | |||
Revenues: | |||
Total revenues | 4,388 | 37,214 | 32,371 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | (4,539) | 5,840 | $ 2,739 |
Total assets: | |||
Total assets | $ 9,034 | $ 38,671 |
CONDENSED FINANCIAL INFORMAT134
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||
RJF parent cash deposited with RJ Bank | $ 192 | $ 350 |
Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net assets restricted from being transferred to Parent | 2,330 | |
RJF Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Unrestricted cash and cash equivalents available to Parent | 1,290 | 810 |
RJF parent cash deposited with RJ Bank | 192 | |
RJF parent cash deposited with RJ bank, unrestricted | $ 152 | $ 350 |
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% |
CONDENSED FINANCIAL INFORMAT135
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Financial Condition (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Assets: | ||||
Cash and cash equivalents | $ 3,669,672 | $ 1,650,452 | $ 2,601,006 | $ 2,199,063 |
Assets segregated pursuant to regulations | 3,476,085 | 4,884,487 | ||
Investments in consolidated subsidiaries: | ||||
Property and equipment, net | 437,374 | 321,457 | ||
Goodwill and identifiable intangible assets, net | 493,183 | 503,046 | ||
Other assets | 34,244 | 51,727 | ||
Total assets | 34,883,456 | 31,486,976 | ||
Liabilities and equity: | ||||
Other payables | 567,045 | 556,532 | ||
Intercompany payables to subsidiaries: | ||||
Accrued compensation and benefits | 1,059,996 | 898,185 | ||
Total liabilities | 29,190,105 | 26,424,000 | ||
Equity | 5,581,713 | 4,916,545 | ||
Total liabilities and equity | 34,883,456 | 31,486,976 | ||
Invested cash and cash equivalents by subsidiaries on behalf of Parent | 783,000 | 457,000 | ||
RJF Parent Company | ||||
Assets: | ||||
Cash and cash equivalents | 528,397 | 371,978 | $ 746,042 | $ 778,855 |
Assets segregated pursuant to regulations | 40,145 | 0 | ||
Intercompany receivables from subsidiaries: | ||||
Bank subsidiary | 319 | 0 | ||
Non-bank subsidiaries | 1,166,765 | 1,228,046 | ||
Investments in consolidated subsidiaries: | ||||
Bank subsidiary | 1,823,342 | 1,658,663 | ||
Non-bank subsidiaries | 3,448,191 | 3,121,410 | ||
Property and equipment, net | 14,457 | 14,891 | ||
Goodwill and identifiable intangible assets, net | 31,954 | 31,954 | ||
Other assets | 624,452 | 611,667 | ||
Total assets | 7,678,022 | 7,038,609 | ||
Liabilities and equity: | ||||
Other payables | 80,576 | 81,340 | ||
Intercompany payables to subsidiaries: | ||||
Bank subsidiary | 0 | 230 | ||
Non-bank subsidiaries | 52,699 | 13,892 | ||
Accrued compensation and benefits | 414,195 | 346,015 | ||
Senior notes payable | 1,548,839 | 1,680,587 | ||
Total liabilities | 2,096,309 | 2,122,064 | ||
Equity | 5,581,713 | 4,916,545 | ||
Total liabilities and equity | $ 7,678,022 | $ 7,038,609 |
CONDENSED FINANCIAL INFORMAT136
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | |||
Interest | $ 802,126 | $ 640,397 | $ 543,282 |
Other | 91,021 | 81,690 | 96,905 |
Total revenues | 6,524,875 | 5,521,120 | 5,309,680 |
Interest expense | (153,778) | (116,056) | (106,074) |
Net revenues | 6,371,097 | 5,405,064 | 5,203,606 |
Non-interest expenses: | |||
Compensation and benefits | 4,228,387 | 3,624,607 | 3,525,250 |
Communications and information processing | 310,961 | 279,746 | 266,396 |
Occupancy and equipment costs | 190,737 | 167,455 | 163,229 |
Business development | 154,926 | 148,413 | 158,966 |
Loss on extinguishment of senior notes payable | 45,746 | 0 | 0 |
Other | 354,138 | 201,364 | 149,266 |
Income before income tax benefit and equity in undistributed net income of subsidiaries | 927,978 | 811,944 | 814,612 |
Provision for income taxes | 289,111 | 271,293 | 296,034 |
Net income attributable to Raymond James Financial, Inc. | 636,235 | 529,350 | 502,140 |
RJF Parent Company | |||
Revenues: | |||
Dividends from non-bank subsidiaries | 183,347 | 248,020 | 230,853 |
Dividends from bank subsidiary | 125,000 | 75,000 | 0 |
Interest from subsidiaries | 16,404 | 8,999 | 6,886 |
Interest | 1,838 | 807 | 843 |
Other | 25,323 | 4,654 | 3,823 |
Total revenues | 351,912 | 337,480 | 242,405 |
Interest expense | (94,921) | (78,089) | (76,233) |
Net revenues | 256,991 | 259,391 | 166,172 |
Non-interest expenses: | |||
Compensation and benefits | 61,765 | 54,664 | 46,758 |
Communications and information processing | 8,741 | 6,330 | 5,999 |
Occupancy and equipment costs | 677 | 636 | 800 |
Business development | 18,773 | 18,364 | 17,581 |
Loss on extinguishment of senior notes payable | 45,746 | 0 | 0 |
Other | 14,707 | 9,792 | 10,365 |
Intercompany allocations and charges | (30,643) | (40,424) | (46,898) |
Total non-interest expenses | 119,766 | 49,362 | 34,605 |
Income before income tax benefit and equity in undistributed net income of subsidiaries | 137,225 | 210,029 | 131,567 |
Provision for income taxes | (85,529) | (64,658) | (42,688) |
Income before equity in undistributed net income of subsidiaries | 222,754 | 274,687 | 174,255 |
Equity in undistributed net income of subsidiaries | 413,481 | 254,663 | 327,885 |
Net income attributable to Raymond James Financial, Inc. | $ 636,235 | $ 529,350 | $ 502,140 |
CONDENSED FINANCIAL INFORMAT137
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||
Net income attributable to Raymond James Financial, Inc. | $ 636,235 | $ 529,350 | $ 502,140 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss on extinguishment of senior notes payable | 45,746 | 0 | 0 |
Other | 29,532 | 16,940 | 5,681 |
Net change in: | |||
Assets segregated pursuant to regulations and other segregated assets | 1,430,898 | (1,942,429) | (476,909) |
Accrued compensation and benefits | 160,038 | 46,367 | 34,702 |
Cash flows from financing activities: | |||
Extinguishment of senior notes payable | (650,000) | (250,000) | 0 |
Premium paid on extinguishment of senior notes payable | (36,892) | 0 | 0 |
Purchases of treasury stock | (34,055) | (162,502) | (88,542) |
Dividends on common stock | (127,202) | (113,435) | (103,143) |
Net increase/(decrease) in cash and cash equivalents | 2,019,220 | (950,554) | 401,943 |
Cash and cash equivalents at beginning of year | 1,650,452 | 2,601,006 | 2,199,063 |
Cash and cash equivalents at end of year | 3,669,672 | 1,650,452 | 2,601,006 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 155,984 | 113,517 | 106,190 |
Cash received for income taxes, net | 349,009 | 303,793 | 378,928 |
RJF Parent Company | |||
Cash flows from operating activities: | |||
Net income attributable to Raymond James Financial, Inc. | 636,235 | 529,350 | 502,140 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on investments | (14,588) | (11,538) | (5,586) |
(Gain)/loss on company-owned life insurance | (47,920) | (25,642) | 8,960 |
Equity in undistributed net income of subsidiaries | (413,481) | (254,663) | (327,885) |
Loss on extinguishment of senior notes payable | 45,746 | 0 | 0 |
Other | 97,616 | 73,798 | 60,634 |
Net change in: | |||
Assets segregated pursuant to regulations and other segregated assets | (40,145) | 0 | 0 |
Intercompany receivables | 178,631 | 19,641 | (102,866) |
Other | 80,561 | 97,067 | 51,442 |
Intercompany payables | 38,577 | (115,657) | 20,338 |
Other payables | (764) | 2,396 | (49) |
Accrued compensation and benefits | 68,180 | 58,520 | 2,911 |
Net cash (used in) provided by operating activities | 628,648 | 373,272 | 210,039 |
Cash flows from investing activities: | |||
(Investments in)/distributions from subsidiaries, net | (36,520) | (637,689) | (9,493) |
Advances to subsidiaries, net | (117,670) | (394,383) | (40,120) |
Proceeds from sales/(purchases) of investments, net | 4,836 | 24,609 | (4,601) |
Purchase of investments in company-owned life insurance, net | (40,661) | (49,488) | (44,917) |
Net cash used in investing activities | (190,015) | (1,056,951) | (99,131) |
Cash flows from financing activities: | |||
Proceeds from senior note issuances, net of debt issuance costs paid | 508,473 | 792,221 | 0 |
Extinguishment of senior notes payable | (650,000) | (250,000) | 0 |
Premium paid on extinguishment of senior notes payable | (36,892) | 0 | 0 |
Exercise of stock options and employee stock purchases | 57,462 | 43,331 | 47,964 |
Purchases of treasury stock | (34,055) | (162,502) | (88,542) |
Dividends on common stock | (127,202) | (113,435) | (103,143) |
Net cash provided by/(used in) financing activities | (282,214) | 309,615 | (143,721) |
Net increase/(decrease) in cash and cash equivalents | 156,419 | (374,064) | (32,813) |
Cash and cash equivalents at beginning of year | 371,978 | 746,042 | 778,855 |
Cash and cash equivalents at end of year | 528,397 | 371,978 | 746,042 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 98,554 | 74,568 | 76,297 |
Cash received for income taxes, net | 92,568 | 27,397 | 32,383 |
Supplemental disclosures of noncash investing activity: | |||
Investments in subsidiaries, net | 24,352 | 781 | 507 |
Losses on extinguishment of debt | $ 8,854 | $ 0 | $ 0 |