Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 19, 2018 | Mar. 29, 2018 | |
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 | $ 11,702,670,062 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 143,284,861 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Assets: | ||
Cash and cash equivalents | $ 3,500,306 | $ 3,669,672 |
Cash segregated pursuant to regulations | 2,441,241 | 3,476,085 |
Securities purchased under agreements to resell | 372,603 | 404,462 |
Securities borrowed | 255,280 | 138,319 |
Financial instruments, at fair value: | ||
Trading instruments (includes $464,528 and $357,099 pledged as collateral) | 702,390 | 564,263 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 2,696,366 | 2,188,282 |
Derivative assets | 180,224 | 318,775 |
Private equity investments | 147,158 | 198,779 |
Other investments (includes $25,503 and $6,640 pledged as collateral) | 202,202 | 220,980 |
Brokerage client receivables, net | 3,342,534 | 2,766,771 |
Receivables from brokers, dealers and clearing organizations | 256,965 | 268,021 |
Other receivables | 582,918 | 652,769 |
Bank loans, net | 19,518,100 | 17,006,795 |
Loans to financial advisors, net | 934,420 | 873,272 |
Property and equipment, net | 486,274 | 437,374 |
Deferred income taxes, net | 203,125 | 313,486 |
Goodwill and identifiable intangible assets, net | 639,097 | 493,183 |
Other assets | 844,316 | 780,425 |
Total assets | 37,412,924 | 34,883,456 |
Liabilities and equity: | ||
Bank deposits | 19,941,507 | 17,732,362 |
Securities sold under agreements to repurchase | 186,205 | 220,942 |
Securities loaned | 422,785 | 383,953 |
Financial instruments sold but not yet purchased, at fair value: | ||
Trading instruments | 235,342 | 221,449 |
Derivative liabilities | 246,913 | 356,964 |
Brokerage client payables | 5,624,810 | 5,411,829 |
Payables to brokers, dealers and clearing organizations | 205,952 | 172,714 |
Accrued compensation, commissions and benefits | 1,189,485 | 1,059,996 |
Other payables | 458,884 | 567,045 |
Other borrowings | 899,059 | 1,514,012 |
Senior notes payable | 1,549,636 | 1,548,839 |
Total liabilities | 30,960,578 | 29,190,105 |
Commitments and contingencies | ||
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; 156,363,615 and 154,228,235 shares issued as of September 30, 2018 and 2017, respectively. Shares outstanding of 145,642,437 and 144,096,521 as of September 30, 2018 and 2017, respectively | 1,563 | 1,542 |
Additional paid-in capital | 1,808,042 | 1,645,397 |
Retained earnings | 5,033,059 | 4,340,054 |
Treasury stock, at cost; 10,693,026 and 10,084,038 common shares as of September 30, 2018 and 2017, respectively | (447,274) | (390,081) |
Accumulated other comprehensive loss | (26,929) | (15,199) |
Total equity attributable to Raymond James Financial, Inc. | 6,368,461 | 5,581,713 |
Noncontrolling interests | 83,885 | 111,638 |
Total equity | 6,452,346 | 5,693,351 |
Total liabilities and equity | 37,412,924 | 34,883,456 |
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 | $ 107,405 | $ 111,743 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Trading instruments, pledged as collateral | $ 464,528 | $ 357,009 |
Other investments, pledged as collateral | 25,503 | 6,640 |
Available-for-sale securities, pledged as collateral | $ 19,672 | $ 0 |
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) | 156,363,615 | 154,228,235 |
Common stock, shares outstanding (in shares) | 145,642,437 | 144,096,521 |
Treasury stock, shares (in shares) | 10,693,026 | 10,084,038 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | |||
Investment banking | $ 440,811 | $ 398,675 | $ 304,155 |
Interest income | 1,043,993 | 802,126 | 640,397 |
Net trading profit | 56,722 | 81,880 | 91,591 |
Other | 74,609 | 91,021 | 81,690 |
Total revenues | 7,475,821 | 6,524,875 | 5,521,120 |
Interest expense | (201,503) | (153,778) | (116,056) |
Net revenues | 7,274,318 | 6,371,097 | 5,405,064 |
Non-interest expenses: | |||
Compensation, commissions and benefits | 4,795,375 | 4,228,387 | 3,624,607 |
Communications and information processing | 365,879 | 310,961 | 279,746 |
Occupancy and equipment costs | 201,943 | 190,737 | 167,455 |
Business development | 181,470 | 154,926 | 148,413 |
Investment sub-advisory fees | 92,388 | 78,656 | 59,930 |
Bank loan loss provision | 20,481 | 12,987 | 28,167 |
Acquisition-related expenses | 3,927 | 17,995 | 40,706 |
Losses on extinguishment of debt | 0 | 45,746 | 0 |
Other | 307,978 | 402,724 | 244,096 |
Total non-interest expenses | 5,969,441 | 5,443,119 | 4,593,120 |
Income including noncontrolling interests and before provision for income taxes | 1,304,877 | 927,978 | 811,944 |
Provision for income taxes | 453,960 | 289,111 | 271,293 |
Net income including noncontrolling interests | 850,917 | 638,867 | 540,651 |
Net income/(loss) attributable to noncontrolling interests | (5,778) | 2,632 | 11,301 |
Net income attributable to Raymond James Financial, Inc. | $ 856,695 | $ 636,235 | $ 529,350 |
Earnings per common share – basic (in dollars per share) | $ 5.89 | $ 4.43 | $ 3.72 |
Earnings per common share – diluted (in dollars per share) | $ 5.75 | $ 4.33 | $ 3.65 |
Weighted-average common shares outstanding - basic (in shares) | 145,271 | 143,275 | 141,773 |
Weighted-average common and common equivalent shares outstanding - diluted (in shares) | 148,838 | 146,647 | 144,513 |
Other comprehensive income/(loss), net of tax: | |||
Net change in unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses | $ (43,221) | $ 1,684 | $ (5,576) |
Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges | (3,315) | 15,618 | 2,179 |
Net change in unrealized gain/(loss) on cash flow hedges | 34,806 | 23,232 | (11,833) |
Total comprehensive income | 844,965 | 676,769 | 514,120 |
Securities commissions and fees | |||
Revenues: | |||
Total revenues | 4,483,040 | 4,020,910 | 3,498,615 |
Investment Advisory, Management and Administrative Service [Member] | |||
Revenues: | |||
Total revenues | 605,634 | 462,989 | 393,346 |
Account and service fees | |||
Revenues: | |||
Total revenues | $ 771,012 | $ 667,274 | $ 511,326 |
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, 2015 | $ 1,491 | $ 1,344,779 | $ 3,422,169 | $ (203,455) | $ (40,503) | $ 154,454 | |||
Changes in Shareholders' Equity: | |||||||||
Share issuances | 22 | ||||||||
Other | 655 | 0 | (1,929) | ||||||
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 from share-based payments (1) | [1] | 35,121 | |||||||
Net income attributable to Raymond James Financial, Inc. | $ 529,350 | 529,350 | |||||||
Cash dividends declared | (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) | (5,576) | |||||||
Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges, net of tax | 2,179 | 2,179 | |||||||
Net change in unrealized gain on cash flow hedges, net of tax | (11,833) | (11,833) | |||||||
Net income attributable to noncontrolling interests | (11,301) | 11,301 | |||||||
Capital contributions | 917 | ||||||||
Distributions | (18,312) | ||||||||
Derecognition resulting from sales | 0 | ||||||||
Balance, end of year at Sep. 30, 2016 | 5,062,976 | 1,513 | 1,498,921 | 3,834,781 | (362,937) | (55,733) | 146,431 | ||
Changes in Shareholders' Equity: | |||||||||
Total equity attributable to Raymond James Financial, Inc. | (55,733) | $ 4,916,545 | |||||||
Share issuances | 29 | ||||||||
Other | 1,193 | (319) | 1,017 | ||||||
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 from share-based payments (1) | [1] | 0 | |||||||
Net income attributable to Raymond James Financial, Inc. | 636,235 | 636,235 | |||||||
Cash dividends declared | (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 | 1,684 | |||||||
Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges, net of tax | 15,618 | 15,618 | |||||||
Net change in unrealized gain on cash flow hedges, net of tax | 23,232 | 23,232 | |||||||
Net income attributable to noncontrolling interests | (2,632) | 2,632 | |||||||
Capital contributions | 9,775 | ||||||||
Distributions | (43,568) | ||||||||
Derecognition resulting from sales | (4,649) | ||||||||
Balance, end of year at Sep. 30, 2017 | 5,693,351 | 1,542 | 1,645,397 | 4,340,054 | (390,081) | (15,199) | 111,638 | ||
Changes in Shareholders' Equity: | |||||||||
Total equity attributable to Raymond James Financial, Inc. | 5,581,713 | (15,199) | 5,581,713 | ||||||
Share issuances | 21 | ||||||||
Other | 1,377 | (189) | (71) | ||||||
Employee stock purchases | 31,134 | ||||||||
Exercise of stock options and vesting of restricted stock units, net of forfeitures | 32,086 | (11,965) | |||||||
Restricted stock, stock option and restricted stock unit expense | 98,048 | ||||||||
Excess tax benefit from share-based payments (1) | [1] | 0 | |||||||
Net income attributable to Raymond James Financial, Inc. | 856,695 | 856,695 | |||||||
Cash dividends declared | (163,501) | ||||||||
Purchases/surrenders | (45,228) | ||||||||
Net change in unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | (43,221) | (43,221) | |||||||
Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges, net of tax | (3,315) | (3,315) | |||||||
Net change in unrealized gain on cash flow hedges, net of tax | 34,806 | 34,806 | |||||||
Net income attributable to noncontrolling interests | 5,778 | (5,778) | |||||||
Capital contributions | 0 | ||||||||
Distributions | (21,904) | ||||||||
Derecognition resulting from sales | 0 | ||||||||
Balance, end of year at Sep. 30, 2018 | 6,452,346 | $ 1,563 | $ 1,808,042 | $ 5,033,059 | $ (447,274) | (26,929) | $ 83,885 | ||
Changes in Shareholders' Equity: | |||||||||
Total equity attributable to Raymond James Financial, Inc. | $ 6,368,461 | $ (26,929) | $ 6,368,461 | ||||||
[1] | During the year ended September 30, 2017, we adopted new stock compensation simplification guidance. See Note 16 for additional information. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | |||
Net income attributable to Raymond James Financial, Inc. | $ 856,695 | $ 636,235 | $ 529,350 |
Net income/(loss) attributable to noncontrolling interests | (5,778) | 2,632 | 11,301 |
Net income including noncontrolling interests | 850,917 | 638,867 | 540,651 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by/(used in) operating activities: | |||
Depreciation and amortization | 98,735 | 84,132 | 72,383 |
Deferred income taxes | 116,549 | (11,617) | (58,798) |
Premium and discount amortization on available-for-sale securities and (gain)/loss on other investments | 21,058 | (27,572) | (25,010) |
Provisions for loan losses, legal and regulatory proceedings and bad debts | 54,683 | 36,357 | 42,394 |
Share-based compensation expense | 103,054 | 96,164 | 78,528 |
Compensation expense/(benefit) payable in common stock of an acquiree | (3,568) | 13,301 | (2,102) |
Unrealized gain on company-owned life insurance policies, net of expenses | (31,932) | (43,385) | (24,586) |
Losses on extinguishment of debt | 0 | 45,746 | 0 |
Other | 24,847 | 29,532 | 16,940 |
Net change in: | |||
Cash segregated pursuant to regulations | 1,019,096 | 1,430,898 | (1,942,429) |
Securities purchased under agreements to resell, net of securities sold under agreements to repurchase | (5,417) | 97,001 | (134,085) |
Securities loaned, net of securities borrowed | (78,346) | (261,659) | 152,380 |
Loans provided to financial advisors, net of repayments | (83,177) | (53,785) | (344,164) |
Brokerage client receivables and other accounts receivable, net | (522,372) | (50,917) | (609,952) |
Trading instruments, net | (142,597) | 57,106 | 7,048 |
Derivative instruments, net | 72,932 | 57,889 | (18,590) |
Other assets | 27,371 | 97,391 | (47,094) |
Brokerage client payables and other accounts payable | 345,996 | (1,133,283) | 1,782,456 |
Accrued compensation, commissions and benefits | 131,569 | 160,038 | 46,367 |
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale | (96,071) | 189,232 | (101,155) |
Net cash provided by/(used in) operating activities | 1,903,327 | 1,305,936 | (573,318) |
Cash flows from investing activities: | |||
Additions to property and equipment | (133,586) | (189,994) | (121,733) |
Increase in bank loans, net | (2,818,434) | (2,253,574) | (2,400,247) |
Proceeds from sales of loans held for investment | 193,157 | 333,130 | 197,557 |
Purchases of available-for-sale securities | (1,124,203) | (1,732,790) | (463,202) |
Available-for-sale securities maturations, repayments and redemptions | 495,465 | 299,343 | 95,961 |
Proceeds from sales of available-for-sale securities | 45,449 | 93,774 | 11,062 |
Business acquisitions, net of cash acquired | (159,200) | 0 | (175,283) |
Other investing activities, net | 25,438 | 74,041 | (62,018) |
Net cash used in investing activities | (3,475,914) | (3,376,070) | (2,917,903) |
Cash flows from financing activities: | |||
Proceeds from/(repayments of) short-term borrowings, net | (610,000) | 610,000 | (115,000) |
Repayments of Federal Home Loan Bank advances and other borrowed funds | (854,952) | (654,647) | (4,407) |
Proceeds from senior note issuances, net of debt issuance costs paid | 0 | 508,473 | 792,221 |
Extinguishment of senior notes payable | 0 | (650,000) | (250,000) |
Premium paid on extinguishment of senior notes payable | 0 | (36,892) | 0 |
Acquisition-related contingent consideration (paid)/received, net | (6,888) | 2,992 | 0 |
Exercise of stock options and employee stock purchases | 63,347 | 57,462 | 43,331 |
Increase in bank deposits | 2,209,145 | 3,469,815 | 2,342,666 |
Purchases of treasury stock | (61,971) | (34,055) | (162,502) |
Dividends on common stock | (151,336) | (127,202) | (113,435) |
Distributions to noncontrolling interests, net | (17,163) | (31,383) | (17,395) |
Net cash provided by financing activities | 1,420,182 | 4,064,563 | 2,540,479 |
Currency adjustment: | |||
Effect of exchange rate changes on cash | (16,961) | 24,791 | 188 |
Net increase/(decrease) in cash and cash equivalents | (169,366) | 2,019,220 | (950,554) |
Cash and cash equivalents at beginning of year | 3,669,672 | 1,650,452 | 2,601,006 |
Cash and cash equivalents at end of year | 3,500,306 | 3,669,672 | 1,650,452 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 200,928 | 155,984 | 113,517 |
Cash paid for income taxes, net | 231,136 | 349,009 | 303,793 |
Jay Peak Litigation | |||
Net change in: | |||
Jay Peak matter payments | 0 | (145,500) | (4,500) |
RJF Credit Facility | |||
Cash flows from financing activities: | |||
Proceeds from borrowings on the RJF Credit Facility | 300,000 | 0 | 0 |
Repayment of borrowings on the RJF Credit Facility | (300,000) | 0 | 0 |
Federal Home Loan Bank Advances | |||
Cash flows from financing activities: | |||
Proceeds from Federal Home Loan Bank advances | $ 850,000 | $ 950,000 | $ 25,000 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION Organization Raymond James Financial, Inc. (“RJF,” the “firm” or the “Company”) is a financial holding company which, together with its subsidiaries, is engaged in various financial services activities, including providing investment management services for retail and institutional clients, the underwriting, distribution, trading and brokerage of equity and debt securities and the sale of mutual funds and other investment products. The firm also provides corporate and retail banking services, and trust services. For further information about our business segments, see Note 23 of this Form 10-K. As used herein, the terms “our,” “we,” or “us” refer to RJF and/or one or more of its subsidiaries. Basis of presentation The accompanying consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100% owned subsidiaries. In addition, we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 and in Note 10 . 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. Reclassifications Certain prior period amounts have been reclassified to conform to the current year’s presentation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2018 | |
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. Trailing commissions from mutual funds and variable annuities/insurance products, which are recorded over the period earned. d. Insurance commission revenues and related expenses are recognized when the delivery of the insurance policy is confirmed by the carrier, the premium is remitted to the insurance company and the policy requirements are met. e. Annuity commission revenues and related expenses are recognized when the signed annuity application and premium is submitted to the annuity carrier. 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 and private placements. 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 banking revenues also include syndication fees on the sale of low income housing tax credit fund interests. 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 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, servicing fees and fees generated from unaffiliated banks related to our Raymond James Bank Deposit Program (“RJBDP”), a multi-bank sweep program. Transaction fees are earned and collected from clients as trades are executed. Annual account fees such as IRA fees and distribution fees are recognized as earned over the term of the contract. Fees related to RJBDP and servicing fees, such as omnibus and education and marketing support fees paid to us for marketing and administrative services provided to mutual fund and insurance/annuity companies, are recognized as earned. 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. Cash segregated pursuant to regulations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Raymond James & Associates, Inc. (“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. The amounts included in Cash segregated pursuant to regulations in our consolidated statements of financial condition represented the amounts of cash actually on deposit in our segregated reserve accounts for regulatory purposes as of each respective period-end. In addition, Raymond James Ltd. (“RJ Ltd.”) is required to hold client Registered Retirement Savings Plan funds in trust. Raymond James Bank, N.A. (“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. Securities purchased under agreements to resell and securities sold under agreements to repurchase 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 under repurchase agreements, we receive collateral with a fair value equal to or in excess of the principal amount loaned under such 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. In addition, under repurchase agreements, we are required to post collateral in an amount that exceeds the carrying value of these agreements. In the event that the market value of the securities we pledge as collateral declines, we may have to post additional collateral or reduce borrowing amounts. See Note 7 for additional information regarding collateralized agreements and financings. Securities borrowed and securities loaned We act as an intermediary between broker-dealers and other financial institutions whereby we borrow securities from one broker-dealer and then either lend them to another broker-dealer or use them to cover short positions. Where permitted, we have also loaned, to broker-dealers and other financial institutions, securities owned by the firm or our clients and others we have received as collateral. 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 collateral agreements and financings. 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. 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). 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. These instruments are generally valued using discounted cash flow techniques, market multiples, or investment-specific events. 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 values for certain of our financial instruments are 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 and auction-rate securities (“ARS”), to be uncertain or inactive as of both September 30, 2018 and 2017. As a result, the valuation of these financial instruments included 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 low volume of trades, 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: Trading instruments and trading instruments sold but not yet purchased - Trading instruments and trading instruments sold but not yet purchased are comprised primarily of the financial instruments held by our broker-dealer subsidiaries and include debt securities, equity securities, brokered certificates of deposit, and other securities. 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. 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. Securities valued using these techniques are classified within Level 2 of the fair value hierarchy. Included within trading instruments are to be announced (“TBA”) security contracts with investors for generic mortgage backed securities (“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 collateralized mortgage obligations (“CMOs”) held by RJ Bank. 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) (“OCI”) 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. 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 have the ability and intent 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 (“OTTI”) 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 do not consider these securities (MBS and CMOs) OTTI due to the guarantee of the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities. We estimate the portion of loss attributable to credit using a discounted cash flow model. 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. We also hold ARS which 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 valuation techniques use unobservable inputs 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 our 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. 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. Any realized or unrealized gains or losses, including interest, are recorded in “Net trading profit” within our 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 in which Raymond James Financial Products, Inc. (“RJFP”), a wholly owned subsidiary, enters into interest rate derivative transactions with clients. For every derivative transaction RJFP enters into with a client, it also 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. 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 derivative, there is no net impact in 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 in our Consolidated Statements of Income and Comprehensive Income. RJ Bank derivatives: We enter into three-month forward foreign exchange contracts to hedge the risks related to RJ Bank’s investment in their Canadian subsidiary, as well as their risk due to holdings of cash and other assets and liabilities resulting from transactions denominated in currencies other than the U.S. dollar. The majority of these derivatives are designated as net investment hedges. 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 are recorded in earnings in our 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 and measured using the hypothetical derivatives method. As the terms of the hedging instrument and hypothetical derivative generally match at inception, the hedge is expected to be highly effective. 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 Federal Home Loan Bank of Atlanta (“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 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 the hedged borrowings. Hedge effectiveness is assessed at inception and at each reporting period utilizing regression analysis. As the key terms of the hedging instrument and hedged transaction match at inception, management expects the hedges to be effective while they are outstanding. The fair value of these interest rate hedges is determined by obtaining valuations from a third-party pricing service. These third-party valuations are based on observable inputs such as time value and yield curve. We validate these observable inputs by preparing an independent calculation using a secondary third-party model. We classify these derivative instruments within Level 2 of the fair value hierarchy. 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 private equity funds which we sponsor. The private equity 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 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisitions completed during fiscal year 2018 In November 2017, we completed our acquisition of 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, broadened the investment solutions available to our clients and has been integrated into our Asset Management segment. For purposes of certain acquisition-related financial reporting requirements, the Scout Group acquisition was not considered a material acquisition. We accounted for this acquisition under the acquisition method of accounting with the assets and liabilities of the Scout Group recorded as of the acquisition date at their respective fair values in our consolidated financial statements. The Scout Group’s results of operations have been included in our results prospectively from November 17, 2017. Acquisitions completed in prior fiscal years 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 is included in our Capital Markets segment. For purposes of certain acquisition-related financial reporting requirements, the Mummert acquisition was not considered a material acquisition. Mummert’s results of operations have been included in our results prospectively from June 1, 2016. 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. 3Macs is included in our Private Client Group (“PCG”) segment. For purposes of certain acquisition-related financial reporting requirements, the 3Macs acquisition was not considered a material acquisition. 3Macs results of operations have been included in our results prospectively from August 31, 2016 . U.S. Private Client Services unit of Deutsche Bank (“Alex. Brown”) In September 2016 , we completed our acquisition of certain specified assets and the assumption of certain specified liabilities of Alex. Brown from Deutsche Bank Securities, Inc. Alex. Brown is included in our PCG segment. For purposes of certain acquisition-related financial reporting requirements, the Alex. Brown acquisition was not considered a material acquisition. 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. We hold DB common shares as an economic hedge to the DBRSU liability. See Note 2 , Note 6 and Note 20 for further information on the DBRSU obligation assumed as part of this acquisition. Acquisition-related expenses The “Acquisition-related expenses” presented in our Consolidated Statements of Income and Comprehensive Income for the years ended September 30, 2018 , 2017 and 2016 pertain to certain incremental expenses incurred in connection with the acquisitions previously described. The following table presents a summary of acquisition-related expenses incurred in each respective period. Year ended September 30, $ in thousands 2018 2017 2016 Legal and regulatory $ 2,281 $ 3,192 $ 8,334 Severance 990 5,859 866 Information systems integration costs 162 1,380 21,752 Acquisition and integration-related incentive compensation costs — 5,474 — Early termination costs of assumed contracts — 1,329 — Post-closing purchase price contingency — (3,345 ) — DBRSU obligation and related hedge — 770 4,837 All other 494 3,336 4,917 Total acquisition-related expenses $ 3,927 $ 17,995 $ 40,706 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Sep. 30, 2018 | |
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. For further information about such instruments and our significant accounting policies related to fair value, see Note 2. The following tables present 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. Bank loans held for sale measured at fair value on a nonrecurring basis are recorded at a fair value lower than cost. $ 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 $ 1,206 $ 247,712 $ — $ — $ 248,918 Corporate obligations 10,184 99,938 — — 110,122 Government and agency obligations 18,660 71,854 — — 90,514 Agency MBS and CMOs 2,745 124,188 — — 126,933 Non-agency CMOs and asset-backed securities (“ABS”) — 68,712 4 — 68,716 Total debt securities 32,795 612,404 4 — 645,203 Equity securities 15,335 130 — — 15,465 Brokered certificates of deposit — 38,616 — — 38,616 Other 23 2,005 1,078 — 3,106 Total trading instruments 48,153 653,155 1,082 — 702,390 Available-for-sale securities Agency MBS and CMOs — 2,628,739 — — 2,628,739 Other securities 942 — — — 942 ARS preferred — — 66,685 — 66,685 Total available-for-sale securities 942 2,628,739 66,685 — 2,696,366 Derivative assets Interest rate contracts Matched book — 160,345 — — 160,345 Other — 74,068 — (55,330 ) 18,738 Foreign exchange contracts — 1,141 — — 1,141 Total derivative assets — 235,554 — (55,330 ) 180,224 Private equity investments Not measured at NAV — — 55,923 — 55,923 Measured at NAV 91,235 Total private equity investments — — 55,923 — 147,158 Other investments 200,786 618 798 — 202,202 Total assets at fair value on a recurring basis $ 249,881 $ 3,518,066 $ 124,488 $ (55,330 ) $ 3,928,340 Assets at fair value on a nonrecurring basis: Bank loans, net Impaired loans $ — $ 9,661 $ 18,634 $ — $ 28,295 Loans held for sale — 40,015 — — 40,015 Total bank loans, net — 49,676 18,634 — 68,310 Other assets: OREO — 575 — — 575 Total assets at fair value on a nonrecurring basis $ — $ 50,251 $ 18,634 $ — $ 68,885 (continued on next page) (continued from previous 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 $ 30 $ 1,133 $ — $ — $ 1,163 Corporate obligations 1,597 24,776 — — 26,373 Government obligations 194,476 — — — 194,476 Agency MBS and CMOs 71 — — — 71 Non-agency MBS and CMOs — 993 — — 993 Total debt securities 196,174 26,902 — — 223,076 Equity securities 5,525 153 — — 5,678 Other 3 — 6,585 — 6,588 Total trading instruments sold but not yet purchased 201,702 27,055 6,585 — 235,342 Derivative liabilities Interest rate contracts Matched book — 160,345 — — 160,345 Other — 113,392 — (46,853 ) 66,539 Foreign exchange contracts — 4,449 — — 4,449 DBRSU obligation (equity) — 15,580 — — 15,580 Total derivative liabilities — 293,766 — (46,853 ) 246,913 Total liabilities at fair value on a recurring basis $ 201,702 $ 320,821 $ 6,585 $ (46,853 ) $ 482,255 $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of Assets at fair value on a recurring basis: Trading instruments Municipal and provincial obligations $ 83 $ 221,884 $ — $ — $ 221,967 Corporate obligations 9,361 81,577 — — 90,938 Government and agency obligations 6,354 28,977 — — 35,331 Agency MBS and CMOs 913 133,070 — — 133,983 Non-agency CMOs and ABS — 28,442 5 — 28,447 Total debt securities 16,711 493,950 5 — 510,666 Equity securities 16,090 389 — — 16,479 Brokered certificates of deposit — 31,492 — — 31,492 Other 32 — 5,594 — 5,626 Total trading instruments 32,833 525,831 5,599 — 564,263 Available-for-sale securities Agency MBS and CMOs — 2,081,079 — — 2,081,079 Other securities 1,032 — — — 1,032 ARS preferred — — 106,171 — 106,171 Total available-for-sale securities 1,032 2,081,079 106,171 — 2,188,282 Derivative assets Interest rate contracts Matched book — 288,035 — — 288,035 Other — 86,436 — (55,728 ) 30,708 Foreign exchange contracts — 32 — — 32 Total derivative assets — 374,503 — (55,728 ) 318,775 Private equity investments Not measured at NAV — — 88,885 — 88,885 Measured at NAV 109,894 Total private equity investments — — 88,885 — 198,779 Other investments 220,312 332 336 — 220,980 Total assets at fair value on a recurring basis $ 254,177 $ 2,981,745 $ 200,991 $ (55,728 ) $ 3,491,079 Assets at fair value on a nonrecurring basis: Bank loans, net Impaired loans $ — $ 17,474 $ 23,994 $ — $ 41,468 Loans held for sale — 11,285 — — 11,285 Total bank loans, net — 28,759 23,994 — 52,753 Other assets: OREO — 880 — — 880 Total assets at fair value on a nonrecurring basis $ — $ 29,639 $ 23,994 $ — $ 53,633 (continued on next page) $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of (continued from previous page) Liabilities at fair value on a recurring basis: Trading instruments sold but not yet purchased Municipal and provincial obligations $ 304 $ — $ — $ — $ 304 Corporate obligations 1,286 35,272 — — 36,558 Government obligations 167,622 — — — 167,622 Agency MBS and CMOs 2,477 — — — 2,477 Non-agency MBS and CMOs — 5,028 — — 5,028 Total debt securities 171,689 40,300 — — 211,989 Equity securities 8,118 1,342 — — 9,460 Total trading instruments sold but not yet purchased 179,807 41,642 — — 221,449 Derivative liabilities Interest rate contracts Matched book — 288,035 — — 288,035 Other — 101,893 — (59,410 ) 42,483 Foreign exchange contracts — 646 — — 646 DBRSU obligation (equity) — 25,800 — — 25,800 Total derivative liabilities — 416,374 — (59,410 ) 356,964 Total liabilities at fair value on a recurring basis $ 179,807 $ 458,016 $ — $ (59,410 ) $ 578,413 Level 3 recurring fair value measurements The following tables present 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 may include changes in fair value that were attributable to both observable and unobservable inputs. In the tables below, gains/(losses) on trading instruments are reported in “Net trading profit,” gains/(losses) on private equity and other investments are reported in “Other” revenues, and gains/(losses) on available-for-sale securities are reported in either “Other” revenues (when included in earnings) or “Other comprehensive income” in our Consolidated Statements of Income and Comprehensive Income. Year ended September 30, 2018 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Available-for-sale securities Private equity and other investments Trading instruments $ in thousands Non-agency CMOs and ABS Other ARS - Private equity investments Other investments Other Fair value beginning of year $ 5 $ 5,594 $ 106,171 $ 88,885 $ 336 $ — Total gains/(losses) for the year: Included in earnings — (2,607 ) 4,684 (4,847 ) (91 ) (1,521 ) Included in other comprehensive income — — 1,279 — — — Purchases and contributions — 82,060 — — 762 2,199 Sales — (83,969 ) (45,449 ) (28,115 ) (209 ) (7,263 ) Distributions (1 ) — — — — — Transfers: Into Level 3 — — — — — — Out of Level 3 — — — — — — Fair value end of year $ 4 $ 1,078 $ 66,685 $ 55,923 $ 798 $ (6,585 ) Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year $ — $ (315 ) $ — $ (16,068 ) $ (300 ) $ (1,521 ) Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year $ — $ — $ 3,132 $ — $ — $ — Year ended September 30, 2017 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 Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year $ 1 $ (1,626 ) $ — $ — $ 8,331 $ 118 Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year $ — $ — $ — $ 7,705 $ — $ — As of both September 30, 2018 and September 30, 2017 , 10% of our assets and 2% of our liabilities were 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, 2018 and September 30, 2017 represented 3% and 6% of our assets measured at fair value, respectively. Level 3 instruments as a percentage of total financial instruments decreased as compared to September 30, 2017 , due to the sale of Level 3 ARS and private equity investments during the year ended September 30, 2018 , as well as the increase in total assets measured at fair value since September 30, 2017 . Quantitative information about level 3 fair value measurements The following tables present 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. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument. Level 3 financial instrument $ in thousands Fair value at September 30, 2018 Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements ARS preferred $ 66,685 Discounted cash flow Average discount rate 6.50% - 7.85% (7.13%) Average interest rates applicable to future interest income on the securities (1) 4.13% - 5.51% (4.47%) Prepayment year (2) 2018 - 2021 (2021) Private equity investments (not measured at NAV) $ 43,012 Income approach - Discounted cash flow Discount rate 25 % Terminal EBITDA Multiple 10.0x Terminal year 2022 - 2042 (2023) $ 12,911 Transaction price or other investment-specific events (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements Bank loans: impaired loans - residential $ 17,076 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.5 yrs.) Bank loans: impaired loans - corporate $ 1,558 Collateral or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) The text of the footnotes in the preceding table are on the following page. Level 3 financial instrument $ in thousands Fair value at September 30, 2017 Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements ARS preferred $ 106,171 Discounted cash flow Average discount rate 5.46% - 6.81% (6.03%) Average interest rates applicable to future interest income on the securities (1) 2.58% - 3.44% (2.72%) Prepayment year (2) 2017 - 2021 (2021) Private equity investments (not measured at NAV) $ 68,454 Income or market approach Scenario 1 - income approach - discounted cash flow Discount rate 13% - 25% (22.4%) Terminal growth rate of cash flows 3% - 3% (3%) Terminal year 2020 - 2042 (2021) Scenario 2 - market approach - market multiple method EBITDA Multiple 5.25x - 7x (5.8x) Weighting assigned to outcome of scenario 1/scenario 2 87%/13% $ 20,431 Transaction price or other investment-specific events (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements Bank loans: impaired loans -residential $ 20,736 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Bank loans: impaired loans -corporate $ 3,258 Appraisal or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) (1) Interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (2) Assumed calendar year of at least a partial redemption of the outstanding security by the issuer. (3) Certain investments are valued initially at transaction price and updated as other investment-specific events take place which indicate that a change in the carrying values of these investments is appropriate. Other investment-specific events include such events as our periodic review, significant transactions occur, new developments become known, or we receive information from a fund manager which allows us to update our proportionate share of net assets. (4) The valuation techniques used for the impaired corporate loan portfolio are appraisals or collateral value less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. 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 in the following sections. ARS preferred The future interest rate and prepayment assumptions impacting the valuation of the auction rate securities are directly related. As short-term interest rates rise, the penalty interest rates, which are embedded in most of these securities in the event auctions fail to set the security’s interest rate, also increase. As penalty interest rates rise, we estimate that issuers of the securities will have the economic incentive to refinance (and thus prepay) the securities. As such, increases in the interest rate, which would generally result in an earlier prepayment assumption, would have increased the fair value of the securities. Increases in the discount rate would have resulted in a lower fair value of the securities. Private equity investments The significant unobservable inputs used in the fair value measurement of private equity investments generally 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. Increases in the discount rate and/or a later terminal year would have resulted in a lower fair value measurement. Increases in the terminal EBITDA multiple would have resulted in a higher fair value measurement. Investments in private equity measured at net asset value per share As more fully described in Note 2, as a practical expedient, we utilize NAV or its equivalent to determine the recorded value of a portion of our private equity investments 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, 2018 included various direct investments, as well as investments in third-party private equity funds and various private equity funds which we sponsor. The portfolio is primarily invested in a broad range of industries including leveraged buyouts, growth capital, distressed capital, venture capital and mezzanine capital. Due to the closed-end nature of certain of our fund investments, such investments cannot be redeemed directly with the funds. Our investment is monetized through distributions received through the liquidation of the underlying assets of those funds, the timing of which is uncertain. The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ in thousands Recorded value Unfunded commitment September 30, 2018 Private equity investments measured at NAV $ 91,235 $ 18,418 Private equity investments not measured at NAV 55,923 Total private equity investments $ 147,158 September 30, 2017 Private equity investments measured at NAV $ 109,894 $ 20,973 Private equity investments not measured at NAV 88,885 Total private equity investments $ 198,779 Of the total private equity investments, the portions we owned were $103 million and $145 million as of September 30, 2018 and 2017 , respectively. The portions of the private equity investments we did not own were $44 million and $54 million as of September 30, 2018 and 2017 , respectively, and were included as a component of noncontrolling interests in our Consolidated Statements of Financial Condition. Many of these fund investments meet the definition of prohibited covered funds as defined by the Volcker Rule enacted pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”). 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 until July 2022. However, our current focus is the divestiture of this portfolio. 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 were recorded at fair value in the Consolidated Statements of Financial Condition. The following financial instruments were not carried at fair value in accordance with GAAP on our Consolidated Statements of Financial Condition at September 30, 2018 or 2017. Short-term financial instruments: The carrying value of short-term financial instruments, including cash and cash equivalents, cash segregated pursuant to federal regulations, repurchase agreements and reverse repurchase agreements 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 cash segregated pursuant to federal regulations are classified as Level 1. Repurchase agreements and reverse repurchase agreements 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 following table. 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 payments 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. The following table 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 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, 2018 Financial assets: Bank loans, net $ — $ 123,911 $ 19,116,423 $ 19,240,334 $ 19,449,790 Loans to financial advisors, net $ — $ — $ 748,437 $ 748,437 $ 934,420 Financial liabilities: Bank deposits $ — $ 19,496,066 $ 438,513 $ 19,934,579 $ 19,941,507 Other borrowings $ — $ 23,900 $ — $ 23,900 $ 23,966 Senior notes payable $ — $ 1,557,728 $ — $ 1,557,728 $ 1,549,636 September 30, 2017 Financial assets: Bank loans, net $ — $ 23,001 $ 16,836,745 $ 16,859,746 $ 16,954,042 Loans to financial advisors, net $ — $ — $ 708,487 $ 708,487 $ 873,272 Financial liabilities: Bank deposits $ — $ 17,417,678 $ 313,359 $ 17,731,037 $ 17,732,362 Other borrowings $ — $ 29,278 $ — $ 29,278 $ 28,813 Senior notes payable $ — $ 1,647,696 $ — $ 1,647,696 $ 1,548,839 |
AVAILABLE FOR SALE SECURITIES
AVAILABLE FOR SALE SECURITIES | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
AVAILABLE FOR SALE SECURITIES | AVAILABLE-FOR-SALE SECURITIES Available-for-sale securities are comprised of agency 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 following table details the amortized cost and fair values of our available-for-sale securities. $ in thousands Cost basis Gross unrealized gains Gross unrealized losses Fair value September 30, 2018 Agency MBS and CMOs $ 2,698,168 $ 394 $ (69,823 ) $ 2,628,739 Other securities 1,575 — (633 ) 942 Total RJ Bank available-for-sale securities 2,699,743 394 (70,456 ) 2,629,681 ARS preferred 60,909 5,776 — 66,685 Total available-for-sale securities $ 2,760,652 $ 6,170 $ (70,456 ) $ 2,696,366 September 30, 2017 Agency MBS and CMOs $ 2,089,153 $ 1,925 $ (9,999 ) $ 2,081,079 Other securities 1,575 — (543 ) 1,032 Total RJ Bank available-for-sale securities 2,090,728 1,925 (10,542 ) 2,082,111 ARS preferred 101,674 4,497 — 106,171 Total available-for-sale securities $ 2,192,402 $ 6,422 $ (10,542 ) $ 2,188,282 See Note 4 for additional information regarding the fair value of available-for-sale securities. The following table details the contractual maturities, amortized cost, carrying values and current yields for our available-for-sale securities with contractual maturities. Since RJ Bank ’s MBS and CMO available-for-sale securities are backed by mortgages, actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. September 30, 2018 $ in thousands Within one year After one but within five years After five but within ten years After ten years Total Agency MBS and CMOs: Amortized cost $ 2,656 $ 245,214 $ 898,553 $ 1,551,745 $ 2,698,168 Carrying value 2,641 239,247 876,432 1,510,419 2,628,739 Weighted-average yield 1.70 % 2.25 % 2.24 % 2.32 % 2.29 % The following table details the gross unrealized losses and fair value of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position. Less than 12 months 12 months or more Total $ in thousands Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses September 30, 2018 Agency MBS and CMOs $ 1,102,652 $ (19,906 ) $ 1,425,650 $ (49,917 ) $ 2,528,302 $ (69,823 ) Other securities — — 942 (633 ) 942 (633 ) Total $ 1,102,652 $ (19,906 ) $ 1,426,592 $ (50,550 ) $ 2,529,244 $ (70,456 ) September 30, 2017 Agency MBS and CMOs $ 1,119,715 $ (5,621 ) $ 295,528 $ (4,378 ) $ 1,415,243 $ (9,999 ) Other securities — — 1,032 (543 ) 1,032 (543 ) Total $ 1,119,715 $ (5,621 ) $ 296,560 $ (4,921 ) $ 1,416,275 $ (10,542 ) Agency MBS and CMOs U.S. government agencies guarantee the contractual cash flows of the agency MBS and CMOs. At September 30, 2018 , of the 255 agency MBS and CMOs in an unrealized loss position, 96 were in a continuous unrealized loss position for less than 12 months and 159 were for 12 months or more. We do not consider these securities OTTI due to the guarantee of the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities. At September 30, 2018 , debt securities we held in excess of ten percent of our equity included Federal National Home Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) which had an amortized cost of $1.82 billion and $667 million , respectively, and a fair value of $1.77 billion and $647 million , respectively. During the year ended September 30, 2018 , there were no sales of agency MBS or CMO available-for-sale securities. During the year ended September 30, 2017 , there were $66 million in proceeds, resulting in an insignificant gain, from the sale of available-for-sale securities. During the year ended September 30, 2016 , there were $8 million in proceeds, resulting in an insignificant gain, from the sale of available-for-sale securities. The gains that resulted from these sales for all periods were included in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. 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, 2018 was $72 million . Only those ARS whose amortized cost basis we do not expect to recover in full are considered to be OTTI, 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, 2018 , there were no ARS preferred with a fair value less than cost basis. Sales or redemptions of ARS for the year ended September 30, 2018 resulted in aggregate proceeds of $45 million and a gain of $5 million , which is included in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. During the year ended September 30, 2017 , sales or redemptions of ARS resulted in proceeds of $30 million and an insignificant gain. During the year ended September 30, 2016 , sales or redemptions of ARS resulted in proceeds of $3 million and an insignificant gain. Other-than-temporarily impaired securities The following table details the changes in the amount of OTTI related to credit losses recognized in “Other” revenues on available-for-sale securities. Year ended September 30, $ in thousands 2018 2017 2016 Amount related to credit losses on securities we held at the beginning of the year $ — $ 8,107 $ 11,847 Decreases to the amount related to credit losses for securities sold during the year — (8,107 ) (3,740 ) Amount related to credit losses on securities we held at the end of the year $ — $ — $ 8,107 |
DERIVATIVE ASSETS AND DERIVATIV
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES | 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. 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 in 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, it also 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 $4 million and $5 million at September 30, 2018 and 2017 , respectively, and was 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 in the following paragraphs. 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, which will ultimately be settled in DB common shares, provided certain 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. Cash initial margin is included as a component of “Receivables from brokers, dealers and clearing organizations” and marketable securities initial margin is included as a component of “Other investments” or “Available-for-sale securities” 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” and are considered to be settlement of the related derivatives. Due to the short-term nature of forward foreign exchange contracts, RJ Bank is generally not required to post collateral with and does not generally receive collateral from its respective counterparties. Derivative balances included in our financial statements The following table 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 collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. September 30, 2018 September 30, 2017 $ in thousands Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate contracts: Matched book $ 160,345 $ 160,345 $ 2,415,615 $ 288,035 $ 288,035 $ 2,766,488 Other (1) 74,068 112,864 6,155,611 86,436 100,503 4,931,809 Foreign exchange contracts 1,141 1,454 549,188 3 530 437,783 DBRSU obligation (equity) (2) — 15,580 15,580 — 25,800 25,800 Subtotal 235,554 290,243 9,135,994 374,474 414,868 8,161,880 Derivatives designated as hedging instruments Interest rate contracts — 528 850,000 — 1,390 850,000 Foreign exchange contracts — 2,995 891,563 29 116 1,048,646 Subtotal — 3,523 1,741,563 29 1,506 1,898,646 Total gross fair value/notional amount 235,554 293,766 $ 10,877,557 374,503 416,374 $ 10,060,526 Offset in the Statements of Financial Condition Counterparty netting (26,124 ) (26,124 ) (6,045 ) (6,045 ) Cash collateral netting (29,206 ) (20,729 ) (49,683 ) (53,365 ) Total amounts offset (55,330 ) (46,853 ) (55,728 ) (59,410 ) Net amounts presented in the Statements of Financial Condition 180,224 246,913 318,775 356,964 Gross amounts not offset in the Statements of Financial Condition Financial instruments (3) (162,480 ) (160,345 ) (293,340 ) (288,035 ) Total $ 17,744 $ 86,568 $ 25,435 $ 68,929 The text of the footnotes in the preceding table are on the following page. The text of the footnotes to the preceding table are as follows: (1) Substantially all relates to interest rate derivatives entered into as part of our fixed income business operations. (2) The DBRSU obligation is not subject to an enforceable master netting arrangement or other similar arrangement. However, we held shares of DB as an economic hedge against this obligation with a fair value of $12 million and $19 million as of September 30, 2018 and 2017 , respectively, which are a component of “Other investments” on our Consolidated Statements of Financial Condition. See additional discussion of the DBRSUs in Note 20 . (3) Although the matched book derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary includes terms that are similar to a master netting agreement. As a result, we present the matched book amounts net in the preceding table. The following table details the gains/(losses) recognized in AOCI, net of income taxes, on derivatives designated as hedging instruments. See Note 18 for additional information. Year ended September 30, $ in thousands 2018 2017 2016 Interest rate contracts (cash flow hedges) $ 34,806 $ 23,232 $ (11,833 ) Foreign exchange contracts (net investment hedges) 27,771 (26,281 ) (6,721 ) Total gains/(losses) recognized in AOCI, net of taxes $ 62,577 $ (3,049 ) $ (18,554 ) There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for any of the years ended September 30, 2018 , 2017 or 2016 . We expect to reclassify an estimated $6 million of interest income 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 9 years. The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Consolidated Statements of Income and Comprehensive Income. Location of gain/(loss) included in the Consolidated Statements of Income and Comprehensive Income Gain/(loss) recognized during the year ended September 30, $ in thousands 2018 2017 2016 Interest rate contracts: Matched book Other revenues $ 104 $ 36 $ 92 Other Net trading profit/other revenues $ 6,018 $ 7,895 $ 2,819 Foreign exchange contracts Other revenues $ 18,091 $ (19,961 ) $ (2,662 ) DBRSU obligation (equity) Compensation, commissions and benefits expense $ 8,192 $ (5,648 ) $ 2,457 DBRSU obligation (equity) Acquisition-related expenses $ — $ (2,383 ) $ — 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 our derivative 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 were in a liability position was $4 million at September 30, 2018 , for which we had not posted any collateral. Such amounts were insignificant at September 30, 2017 . |
COLLATERALIZED AGREEMENTS AND F
COLLATERALIZED AGREEMENTS AND FINANCINGS | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 Gross amounts of recognized assets/liabilities $ 372,603 $ 255,280 $ 186,205 $ 422,785 Gross amounts offset in the Consolidated Statements of Financial Condition — — — — Net amounts presented in the Consolidated Statements of Financial Condition 372,603 255,280 186,205 422,785 Gross amounts not offset in the Consolidated Statements of Financial Condition (372,603 ) (247,860 ) (186,205 ) (407,975 ) Net amount $ — $ 7,420 $ — $ 14,810 September 30, 2017 Gross amounts of recognized assets/liabilities $ 404,462 $ 138,319 $ 220,942 $ 383,953 Gross amounts offset in the Consolidated Statements of Financial Condition — — — — Net amounts presented in the Consolidated Statements of Financial Condition 404,462 138,319 220,942 383,953 Gross amounts not offset in the Consolidated Statements of Financial Condition (404,462 ) (134,304 ) (220,942 ) (373,132 ) Net amount $ — $ 4,015 $ — $ 10,821 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, 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 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 following table presents financial instruments at fair value that we received as collateral, were 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 previously described. September 30, $ in thousands 2018 2017 Collateral we received that was available to be delivered or repledged $ 3,165,127 $ 3,030,736 Collateral that we delivered or repledged $ 1,388,882 $ 1,068,912 Encumbered assets We pledge certain of our financial instruments to collateralize either repurchase agreements or other secured borrowings, maintain lines of credit, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments. The following table presents information about the fair value of our assets that have been pledged for one of the purposes previously described. September 30, $ in thousands 2018 2017 Financial instruments owned, at fair value, pledged to counterparties that: Had the right to deliver or repledge $ 509,703 $ 363,739 Did not have the right to deliver or repledge $ 64,614 $ 44,930 Bank loans, net pledged at FHLB and the Federal Reserve $ 4,075,081 $ 3,197,185 Repurchase agreements, repurchase-to-maturity transactions and securities loaned 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 September 30, 2018 Repurchase agreements: Government and agency obligations $ 102,140 $ — $ — $ — $ 102,140 Agency MBS and CMOs 84,065 — — — 84,065 Total repurchase agreements 186,205 — — — 186,205 Securities loaned: Equity securities 422,785 — — — 422,785 Total $ 608,990 $ — $ — $ — $ 608,990 September 30, 2017 Repurchase agreements: Government and agency obligations $ 107,284 $ — $ — $ — $ 107,284 Agency MBS and CMOs 113,658 — — — 113,658 Total repurchase agreements 220,942 — — — 220,942 Securities loaned: Equity securities 383,953 — — — 383,953 Total $ 604,895 $ — $ — $ — $ 604,895 As of both September 30, 2018 and 2017 , we did not have any “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. |
BANK LOANS, NET
BANK LOANS, NET | 12 Months Ended |
Sep. 30, 2018 | |
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 following table are presented net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs. September 30, 2018 2017 2016 $ in thousands Balance % Balance % Balance % Loans held for investment: C&I loans $ 7,785,237 40 % $ 7,385,910 43 % $ 7,470,373 48 % CRE construction loans 150,825 1 % 112,681 1 % 122,718 1 % CRE loans 3,624,407 18 % 3,106,290 18 % 2,554,071 17 % Tax-exempt loans 1,227,112 6 % 1,017,791 6 % 740,944 5 % Residential mortgage loans 3,756,609 19 % 3,148,730 18 % 2,441,569 16 % SBL 3,033,390 15 % 2,386,697 14 % 1,904,827 12 % Total loans held for investment 19,577,580 17,158,099 15,234,502 Net unearned income and deferred expenses (20,656 ) (31,178 ) (40,675 ) Total loans held for investment, net 19,556,924 17,126,921 15,193,827 Loans held for sale, net 163,926 1 % 70,316 — 214,286 1 % Total loans held for sale and investment 19,720,850 100 % 17,197,237 100 % 15,408,113 100 % Allowance for loan losses (202,750 ) (190,442 ) (197,378 ) Bank loans, net $ 19,518,100 $ 17,006,795 $ 15,210,735 September 30, 2015 2014 $ in thousands Balance % Balance % Loans held for investment: C&I loans $ 6,928,018 52 % $ 6,422,347 58 % CRE construction loans 162,356 1 % 94,195 1 % CRE loans 2,054,154 16 % 1,689,163 15 % Tax-exempt loans 484,537 4 % 122,218 1 % Residential mortgage loans 1,962,614 15 % 1,751,747 16 % SBL 1,481,504 11 % 1,023,748 9 % Total loans held for investment 13,073,183 11,103,418 Net unearned income and deferred expenses (32,424 ) (37,533 ) Total loans held for investment, net 13,040,759 11,065,885 Loans held for sale, net 119,519 1 % 45,988 — Total loans held for sale and investment 13,160,278 100 % 11,111,873 100 % Allowance for loan losses (172,257 ) (147,574 ) Bank loans, net $ 12,988,021 $ 10,964,299 At September 30, 2018 , 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 $1.69 billion , $1.67 billion and $1.80 billion of loans held for sale during the years ended September 30, 2018 , 2017 and 2016 , respectively. Proceeds from the sale of these held for sale loans amounted to $606 million , $439 million and $383 million for the years ended September 30, 2018 , 2017 and 2016 , respectively. Net gains resulting from such sales amounted to $2 million in each of the years ended September 30, 2018, 2017 and 2016. 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 loans CRE loans Residential mortgage loans Total Year ended September 30, 2018 Purchases $ 467,534 $ 144,818 $ 303,030 $ 915,382 Sales $ 212,752 $ — $ — $ 212,752 Year ended September 30, 2017 Purchases $ 536,627 $ 63,542 $ 264,340 $ 864,509 Sales $ 341,196 $ — $ — $ 341,196 Year ended September 30, 2016 Purchases $ 457,503 $ 24,869 $ 371,710 $ 854,082 Sales $ 172,968 $ — $ — $ 172,968 Sales in the preceding table 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. As more fully described in Note 2, 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. Amounts in the table exclude any net unearned income and deferred expenses. $ in thousands 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual Current and accruing Total loans held for investment September 30, 2018 C&I loans $ — $ — $ — $ 1,558 $ 7,783,679 $ 7,785,237 CRE construction loans — — — — 150,825 150,825 CRE loans — — — — 3,624,407 3,624,407 Tax-exempt loans — — — — 1,227,112 1,227,112 Residential mortgage loans: First mortgage loans 1,289 — 1,289 22,848 3,706,769 3,730,906 Home equity loans/lines 23 — 23 122 25,558 25,703 SBL — — — — 3,033,390 3,033,390 Total loans held for investment, net $ 1,312 $ — $ 1,312 $ 24,528 $ 19,551,740 $ 19,577,580 September 30, 2017 C&I loans $ — $ — $ — $ 5,221 $ 7,380,689 $ 7,385,910 CRE construction loans — — — — 112,681 112,681 CRE loans — — — — 3,106,290 3,106,290 Tax-exempt loans — — — — 1,017,791 1,017,791 Residential mortgage loans: First mortgage loans 1,853 — 1,853 33,718 3,086,701 3,122,272 Home equity loans/lines 248 — 248 31 26,179 26,458 SBL — — — — 2,386,697 2,386,697 Total loans held for investment, net $ 2,101 $ — $ 2,101 $ 38,970 $ 17,117,028 $ 17,158,099 The preceding table includes $11 million and $18 million at September 30, 2018 and 2017 , respectively, of nonaccrual loans which were performing pursuant to their contractual terms. Other real estate owned, included in “Other assets” on our Consolidated Statements of Financial Condition, was $3 million and $5 million at September 30, 2018 and 2017 , respectively. The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $12 million and $18 million at September 30, 2018 and 2017 , respectively. Impaired loans and troubled debt restructurings The following table provides a summary of RJ Bank ’s impaired loans. September 30, 2018 2017 $ in thousands Gross recorded investment Unpaid principal balance Allowance for losses Gross recorded investment Unpaid principal balance Allowance for losses Impaired loans with allowance for loan losses: C&I loans $ — $ — $ — $ 5,221 $ 6,160 $ 1,963 Residential - first mortgage loans 15,229 19,728 1,592 23,977 31,100 2,504 Total 15,229 19,728 1,592 29,198 37,260 4,467 Impaired loans without allowance for loan losses: C&I loans 1,558 1,700 — — — — Residential - first mortgage loans 13,100 20,005 — 16,737 24,899 — Total 14,658 21,705 — 16,737 24,899 — Total impaired loans $ 29,887 $ 41,433 $ 1,592 $ 45,935 $ 62,159 $ 4,467 Impaired loan balances with allowances for loan losses have had reserves established based upon management’s analysis. There is no allowance required when the discounted cash flow, collateral value or market value of a loan equals or exceeds the carrying value. These are generally loans in process of foreclosure that have already been adjusted to fair value. The preceding table includes residential first mortgage TDR’s of $21 million and $27 million at September 30, 2018 and 2017 , respectively. The average balances of total impaired loans were as follows. Year ended September 30, $ in thousands 2018 2017 2016 Average impaired loan balance: C&I loans $ 4,048 $ 17,540 $ 18,112 CRE loans — 694 4,474 Residential - first mortgage loans 32,778 43,845 51,554 Total $ 36,826 $ 62,079 $ 74,140 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 following table presents the credit quality of RJ Bank ’s held for investment loan portfolio. $ in thousands Pass Special mention Substandard Doubtful Total September 30, 2018 C&I loans $ 7,678,521 $ 47,933 $ 58,783 $ — $ 7,785,237 CRE construction loans 139,696 11,129 — — 150,825 CRE loans 3,547,382 44,151 32,874 — 3,624,407 Tax-exempt loans 1,227,112 — — — 1,227,112 Residential mortgage loans: First mortgage loans 3,692,524 8,046 30,336 — 3,730,906 Home equity loans/lines 25,578 3 122 — 25,703 SBL 3,033,390 — — — 3,033,390 Total $ 19,344,203 $ 111,262 $ 122,115 $ — $ 19,577,580 September 30, 2017 C&I loans $ 7,232,777 $ 63,964 $ 89,169 $ — $ 7,385,910 CRE construction loans 112,681 — — — 112,681 CRE loans 3,048,847 57,315 128 — 3,106,290 Tax-exempt loans 1,017,791 — — — 1,017,791 Residential mortgage loans: First mortgage loans 3,068,290 8,467 45,515 — 3,122,272 Home equity loans/lines 26,352 75 31 — 26,458 SBL 2,386,697 — — — 2,386,697 Total $ 16,893,435 $ 129,821 $ 134,843 $ — $ 17,158,099 Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans. Allowance for loan losses and reserve for unfunded lending commitments The following table presents changes in the allowance for loan losses of RJ Bank by portfolio segment. Loans held for investment $ in thousands C&I loans CRE construction loans CRE loans Tax-exempt loans Residential mortgage loans SBL Total Year ended September 30, 2018 Balance at beginning of year $ 119,901 $ 1,421 $ 41,749 $ 6,381 $ 16,691 $ 4,299 $ 190,442 Provision/(benefit) for loan losses 13,426 1,747 5,240 2,163 (1,742 ) (353 ) 20,481 Net (charge-offs)/recoveries: Charge-offs (9,587 ) — (32 ) — (383 ) — (10,002 ) Recoveries 4 — — — 2,320 — 2,324 Net (charge-offs)/recoveries (9,583 ) — (32 ) — 1,937 — (7,678 ) Foreign exchange translation adjustment (349 ) — (146 ) — — — (495 ) Balance at end of year $ 123,395 $ 3,168 $ 46,811 $ 8,544 $ 16,886 $ 3,946 $ 202,750 Year ended September 30, 2017 Balance at beginning of year $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 Provision/(benefit) for loan losses 7,502 (101 ) (172 ) 2,281 3,944 (467 ) 12,987 Net (charge-offs)/recoveries: Charge-offs (26,088 ) — — — (918 ) — (27,006 ) Recoveries 340 — 5,013 — 1,001 — 6,354 Net (charge-offs)/recoveries (25,748 ) — 5,013 — 83 — (20,652 ) Foreign exchange translation adjustment 446 (92 ) 375 — — — 729 Balance at end of year $ 119,901 $ 1,421 $ 41,749 $ 6,381 $ 16,691 $ 4,299 $ 190,442 Year ended September 30, 2016 Balance at beginning of year $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 Provision/(benefit) for loan losses 23,051 (1,023 ) 5,997 (1,849 ) 191 1,800 28,167 Net (charge-offs)/recoveries: Charge-offs (2,956 ) — — — (1,470 ) — (4,426 ) Recoveries — — — — 1,417 — 1,417 Net (charge-offs)/recoveries (2,956 ) — — — (53 ) — (3,009 ) Foreign exchange translation adjustment (17 ) (70 ) 50 — — — (37 ) Balance at end of year $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 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, 2018 C&I loans $ — $ 123,395 $ 123,395 $ 1,558 $ 7,783,679 $ 7,785,237 CRE construction loans — 3,168 3,168 — 150,825 150,825 CRE loans — 46,811 46,811 — 3,624,407 3,624,407 Tax-exempt loans — 8,544 8,544 — 1,227,112 1,227,112 Residential mortgage loans 1,601 15,285 16,886 34,595 3,722,014 3,756,609 SBL — 3,946 3,946 — 3,033,390 3,033,390 Total $ 1,601 $ 201,149 $ 202,750 $ 36,153 $ 19,541,427 $ 19,577,580 September 30, 2017 C&I loans $ 1,963 $ 117,938 $ 119,901 $ 5,221 $ 7,380,689 $ 7,385,910 CRE construction loans — 1,421 1,421 — 112,681 112,681 CRE loans — 41,749 41,749 — 3,106,290 3,106,290 Tax-exempt loans — 6,381 6,381 — 1,017,791 1,017,791 Residential mortgage loans 2,506 14,185 16,691 47,368 3,101,362 3,148,730 SBL — 4,299 4,299 — 2,386,697 2,386,697 Total $ 4,469 $ 185,973 $ 190,442 $ 52,589 $ 17,105,510 $ 17,158,099 The reserve for unfunded lending commitments, which is included in “Other payables” on our Consolidated Statements of Financial Condition, was $10 million and $11 million at September 30, 2018 and 2017 , respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Sep. 30, 2018 | |
Prepaid Expense and Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS The following table details the components of other assets. September 30, $ in thousands 2018 2017 Investments in company-owned life insurance policies $ 605,289 $ 504,108 Prepaid expenses 98,914 96,059 Investment in FHLB stock 52,187 52,187 Investment in FRB stock 24,706 24,706 Prepaid compensation arising from acquisitions 16,454 27,175 Guaranteed LIHTC Fund financing asset 9,792 15,786 Indemnification asset 4,095 26,160 All other 32,879 34,244 Total other assets $ 844,316 $ 780,425 As of September 30, 2018 , the cumulative face value of our company-owned life insurance policies was $1.90 billion . Prepaid compensation arising from acquisitions primarily relates to our 2016 acquisitions of 3Macs and Alex. Brown. See Note 3 for further information about these acquisitions. In fiscal year 2010, we sold an investment in a low-income housing tax credit fund and 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. The related financing liability in the amount of $10 million and $16 million as of September 30, 2018 and 2017 , respectively, was included in “Other payables” on our Consolidated Statements of Financial Condition. See Note 17 for additional information. Our indemnification asset pertains to legal matters for which Regions (as hereinafter defined) has indemnified RJF in connection with our acquisition of Morgan Keegan & Company, Inc., and MK Holding, Inc. and certain of its affiliates (collectively referred to as “Morgan Keegan”). The liabilities related to such matters were included in “Other payables” on our Consolidated Statements of Financial Condition. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Sep. 30, 2018 | |
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 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, a Guaranteed LIHTC Fund, 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 following table. 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, 2018 Private Equity Interests $ 67,179 $ 5,084 LIHTC fund in which RJ Bank is an investor member 53,149 257 Guaranteed LIHTC Fund 40,411 3,110 Other LIHTC funds 17,493 18,171 Restricted Stock Trust Fund 13,538 13,538 Total $ 191,770 $ 40,160 September 30, 2017 Private Equity Interests $ 104,414 $ 3,851 LIHTC fund in which RJ Bank is an investor member 57,719 1,055 Guaranteed LIHTC Fund 51,400 2,872 Other LIHTC funds 7,418 2,544 Restricted Stock Trust Fund 12,122 12,122 Total $ 233,073 $ 22,444 See Note 9 for information regarding the financing asset associated with the Guaranteed LIHTC Fund and Note 17 for additional information regarding the commitment related to this fund. 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 2018 2017 Assets: Cash and cash equivalents $ 3,830 $ 2,052 Cash segregated pursuant to regulations 3,020 4,590 Other receivables 1,215 168 Intercompany receivables 442 454 Private equity investments 62,275 101,905 Investments in real estate partnerships held by consolidated variable interest entities 107,405 111,743 Trust fund investment in RJF common stock 13,536 12,120 Other assets 47 41 Total assets $ 191,770 $ 233,073 Liabilities and equity: Other payables $ 26,628 $ 9,667 Intercompany payables 17,271 16,520 Total liabilities 43,899 26,187 RJF equity 70,066 101,445 Noncontrolling interests 77,805 105,441 Total equity 147,871 206,886 Total liabilities and equity $ 191,770 $ 233,073 The trust fund investment in RJF common stock in the preceding table is the Restricted Stock Trust Fund, which is included in “Treasury stock” on our Consolidated Statements of Financial Condition. VIEs where we hold a variable interest but are not the primary beneficiary As discussed in Note 2 , we have concluded that for certain VIEs we are not the primary beneficiary and therefore do not consolidate these VIEs. Such VIEs include certain Private Equity Interests, certain LIHTC funds, NMTC funds and other limited partnerships. Our risk of loss for these VIEs is limited to our investments in, advances to, and/or receivables due from these VIEs. 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 following table. September 30, 2018 2017 $ in thousands Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss Private Equity Interests $ 6,907,827 $ 154,301 $ 68,053 $ 10,485,611 $ 174,354 $ 73,457 LIHTC funds 5,692,112 1,912,110 93,270 5,372,367 2,134,600 60,959 NMTC funds 13,878 141 7 30,297 105 9 Other 196,939 113,344 4,044 169,462 88,615 3,163 Total $ 12,810,756 $ 2,179,896 $ 165,374 $ 16,057,737 $ 2,397,674 $ 137,588 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The following table presents our property and equipment, net balances as of the dates presented. September 30, $ in thousands 2018 2017 Land $ 29,079 $ 29,079 Software, including development in progress 417,390 345,734 Buildings, leasehold and land improvements 350,144 324,452 Furniture, fixtures and equipment 247,548 224,418 Construction in process 16,461 12,056 Total property and equipment 1,060,622 935,739 Less: Accumulated depreciation and amortization (574,348 ) (498,365 ) Total property and equipment, net $ 486,274 $ 437,374 Depreciation expense and software amortization was $85 million , $71 million , and $63 million for the fiscal years ended September 30, 2018 , 2017 , and 2016 , respectively. |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET Our goodwill and identifiable intangible assets result from various acquisitions. See Note 2 for a discussion of our goodwill and intangible assets accounting policies. The following table presents our goodwill and net identifiable intangible asset balances as of the dates indicated. September 30, $ in thousands 2018 2017 Goodwill $ 478,251 $ 410,723 Identifiable intangible assets, net 160,846 82,460 Total goodwill and identifiable intangible assets, net $ 639,097 $ 493,183 As described in Note 3, we acquired the Scout Group during the year ended September 30, 2018 , which included a number of identifiable intangible assets, as well as goodwill. Goodwill The following summarizes our goodwill by segment, and the balances and activity for the years indicated. $ in thousands Private Client Group Capital Markets Asset Management Total Year ended September 30, 2018 Goodwill as of beginning of year $ 276,713 $ 134,010 $ — $ 410,723 Additions — — 69,234 69,234 Foreign currency translations (837 ) (869 ) — (1,706 ) Goodwill as of end of year $ 275,876 $ 133,141 $ 69,234 $ 478,251 Year ended September 30, 2017 Goodwill as of beginning of year $ 275,521 $ 132,551 $ — $ 408,072 Foreign currency translations 1,192 1,459 — 2,651 Goodwill as of end of year $ 276,713 $ 134,010 $ — $ 410,723 The addition to goodwill during the year ended September 30, 2018 arose from our acquisition of the Scout Group. The goodwill primarily represents synergies from combining the Scout Group with our existing businesses. All of the goodwill associated with the Scout Group is deductible for tax purposes over 15 years . 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. We performed our latest annual goodwill impairment testing as of our January 1, 2018 evaluation date, evaluating balances as of December 31, 2017, and no impairment was identified. In that testing, we performed a qualitative assessment for certain of our reporting units and a quantitative assessment for our two RJ Ltd. reporting units operating in Canada. 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 concluded that none of the goodwill allocated to any of those reporting units was impaired. No events have occurred since our assessments that would cause us to update this impairment testing. Quantitative Assessments We elected to perform a quantitative assessment 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, 2017 and a statement of operations for the prior 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, management judgment was applied in determining the weight assigned to the outcomes of the income approach and the market 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, 2017 ($ in thousands) Discount rate used in the income approach Multiple applied to revenue/EPS in the market approach Income approach Market approach Private Client Group RJ Ltd. Private Client Group $ 24,285 14.3 % 1.2x/13.8x 75 % 25 % Capital Markets RJ Ltd. Capital Markets $ 20,293 15.3 % 0.9x/14.2x 75 % 25 % 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. However, the assumptions and estimates utilized in determining the fair value of reporting unit equity, including future cash flow projections, are sensitive to changes including, but not limited to, overall market conditions, adverse business trends and changes in regulations. Should we fail to perform as we have projected, the fair value of our reporting unit, and as a result our goodwill, could be impaired. No events have occurred since our assessments 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. $ in thousands Private Client Group Capital Markets Asset Management Total Year ended September 30, 2018 Net identifiable intangible assets as of beginning of year $ 47,026 $ 23,077 $ 12,357 $ 82,460 Additions — — 92,290 92,290 Amortization expense (5,929 ) (3,077 ) (4,667 ) (13,673 ) Foreign currency translations (52 ) — (179 ) (231 ) Net identifiable intangible assets as of end of year $ 41,045 $ 20,000 $ 99,801 $ 160,846 Year ended September 30, 2017 Net identifiable intangible assets as of beginning of year $ 52,936 $ 27,937 $ 14,101 $ 94,974 Amortization expense (6,001 ) (4,845 ) (2,004 ) (12,850 ) Foreign currency translations 91 (15 ) 260 336 Net identifiable intangible assets as of end of year $ 47,026 $ 23,077 $ 12,357 $ 82,460 The addition of intangible assets during the year ended September 30, 2018 was attributable to the Scout Group acquisition. The following table summarizes our acquired intangible asset balances by asset class. Weighted average useful life (in years) Amount acquired ( $ in thousands ) Customer relationships 13 $ 34,900 Trade name 20 3,590 Developed technology 10 1,800 Intangible assets subtotal $ 40,290 Non-amortizing customer relationships Indefinite 52,000 Total intangible assets acquired $ 92,290 As described in Note 2, we perform impairment testing for our indefinite-lived intangible assets on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. Our indefinite-lived customer relationships were acquired in our November 2017 acquisition of the Scout Group. No events have occurred since our acquisition that would cause us to update our recorded value. The following summarizes our identifiable intangible assets by type. September 30, 2018 2017 $ in thousands Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 133,483 $ (39,855 ) $ 99,749 $ (31,098 ) Non-amortizing customer relationships 52,000 — — — Trade name 11,749 (3,588 ) 8,366 (2,076 ) Developed technology 3,430 (1,189 ) 1,630 (706 ) Intellectual property 523 (179 ) 542 (131 ) Non-compete agreements 2,902 (1,998 ) 3,336 (1,551 ) Seller relationship agreements 5,300 (1,732 ) 5,300 (901 ) Total $ 209,387 $ (48,541 ) $ 118,923 $ (36,463 ) The following table sets forth the projected amortization expense by fiscal year associated with our identifiable intangible assets with finite lives. Fiscal year ended September 30, $ in thousands 2019 $ 13,596 2020 12,817 2021 12,063 2022 11,456 2023 10,409 Thereafter 48,505 Total $ 108,846 |
BANK DEPOSITS
BANK DEPOSITS | 12 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
BANK DEPOSITS | BANK DEPOSITS Bank deposits include savings and money market accounts, certificates of deposit with RJ Bank, Negotiable Order of Withdrawal (“NOW”) accounts and demand 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 each respective period. September 30, 2018 2017 $ in thousands Balance Weighted-average rate Balance Weighted-average rate Savings and money market accounts $ 19,474,529 0.54 % $ 17,391,091 0.14 % Certificates of deposit 445,442 2.03 % 314,685 1.60 % NOW accounts 5,823 0.01 % 5,197 0.01 % Demand deposits (non-interest-bearing) 15,713 — 21,389 — Total bank deposits $ 19,941,507 0.57 % $ 17,732,362 0.17 % Total bank deposits in the preceding table exclude affiliate deposits of $279 million and $243 million at September 30, 2018 and 2017 , respectively. These affiliate deposits include $277 million and $192 million at September 30, 2018 and 2017 , respectively, held in a deposit account at RJ Bank on behalf of RJF (see Note 24 for additional information). Savings and money market accounts in the preceding table 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, 2018 was $25 million . The following table sets forth the scheduled maturities of certificates of deposit. September 30, 2018 2017 $ in thousands Denominations greater than or equal to $100,000 Denominations less than $100,000 Denominations greater than or equal to $100,000 Denominations less than $100,000 Three months or less $ 29,611 $ 16,960 $ 8,704 $ 4,132 Over three through six months 19,714 12,716 4,692 3,894 Over six through twelve months 37,911 26,078 34,005 11,865 Over one through two years 65,051 40,434 38,713 20,019 Over two through three years 21,200 13,504 48,082 27,847 Over three through four years 43,654 26,245 21,819 12,761 Over four through five years 64,552 27,812 50,805 27,347 Total $ 281,693 $ 163,749 $ 206,820 $ 107,865 Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized in the following table. Year ended September 30, $ in thousands 2018 2017 2016 Savings, money market, and NOW accounts $ 59,340 $ 12,859 $ 4,816 Certificates of deposit 6,217 4,325 5,402 Total interest expense on deposits $ 65,557 $ 17,184 $ 10,218 |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS The following table details the components of other borrowings. September 30, $ in thousands 2018 2017 FHLB advances $ 875,000 $ 875,000 Unsecured lines of credit — 350,000 Secured lines of credit — 260,000 Mortgage notes payable and other 24,059 29,012 Total other borrowings $ 899,059 $ 1,514,012 Borrowings from the FHLB as of September 30, 2018 and 2017 , were comprised of both floating and fixed-rate advances. As of September 30, 2018 and 2017 , the floating-rate advances, which have interest rates that reset quarterly, totaled $850 million . The floating-rate advances mature in June 2020 . 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. As of both September 30, 2018 and 2017 , the fixed-rate advance totaled $25 million and bears interest at a fixed rate of 3.4% . This advance matures in October 2020 . 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 FHLB advances as of September 30, 2018 and 2017 was 2.41% and 1.41% , respectively. 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” and “Securities loaned” on our Consolidated Statements of Financial Condition. See Note 7 for information regarding our collateralized financing arrangements. 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, 2018 or 2017 . 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, 2018 , the variable rate commitment fee, which would apply to any difference between the daily borrowed amount and the committed amount, was 0.20% per annum. 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, London Inter-bank Offered Rate (“LIBOR”), a lenders prime rate, or the Canadian prime rate, as applicable. 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 a fixed interest rate of 5.7% with repayment terms of monthly interest and principal debt service and have a January 2023 maturity. Our other borrowings as of September 30, 2018 , mature as follows based on their contractual terms. Fiscal year ended September 30, $ in thousands 2019 $ 5,222 2020 855,430 2021 30,748 2022 6,084 2023 1,575 Thereafter — Total $ 899,059 |
SENIOR NOTES PAYABLE
SENIOR NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
SENIOR NOTES PAYABLE | SENIOR NOTES PAYABLE The following table summarizes our senior notes payable. September 30, $ in thousands 2018 2017 5.625% senior notes, due 2024 $ 250,000 $ 250,000 3.625% senior notes, due 2026 500,000 500,000 4.95% senior notes, due 2046 800,000 800,000 Total principal amount 1,550,000 1,550,000 Unaccreted premium/(discount) 11,610 11,905 Unamortized debt issuance costs (11,974 ) (13,066 ) Total senior notes payable $ 1,549,636 $ 1,548,839 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 During the year ended September 30, 2017, we redeemed all of our outstanding 6.90% senior notes due March 2042 and 8.60% senior notes due August 2019. This redemption resulted in a $46 million loss on extinguishment of debt in our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2017, comprised of a make-whole premium and unamortized debt issuance costs. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2018 | |
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. The Tax Act On December 22, 2017, the Tax Act was enacted, which significantly revised the U.S. corporate income tax system by, among other things, lowering federal corporate income tax rates from 35% to 21% and implementing a territorial tax system which includes a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. As the firm’s fiscal year end is September 30 th , our U.S. federal statutory tax rate was 24.5% for our fiscal year ended September 30, 2018, which reflects a blended federal statutory rate of 35% for our first fiscal quarter and 21% for the remaining three fiscal quarters. This blended statutory rate was the basis for calculating our effective tax rate, which was also impacted by other factors. Our provision for taxes for the year ended September 30, 2018 included $105 million related to the enactment of the Tax Act, which included: (1) $93 million due to the remeasurement of U.S. deferred tax assets at the lower enacted corporate tax rate; (2) the transition tax on deemed repatriated earnings of foreign subsidiaries of $10 million , including the associated state tax liability; and (3) $2 million due to the evaluation of deferred tax assets related to executive compensation. We have completed our accounting for the impact of the Tax Act. Income taxes The following table details the total income tax provision/(benefit) allocation for each respective period. Year ended September 30, $ in thousands 2018 2017 2016 Recorded in: Net income including noncontrolling interests $ 453,960 $ 289,111 $ 271,293 Equity, arising from cash flow hedges recorded through other comprehensive income/(loss) 14,768 14,239 (7,252 ) Equity, arising from currency translations, net of the impact of net investment hedges recorded through other comprehensive income/(loss) 10,135 (7,427 ) (3,525 ) Equity, arising from available-for-sale securities recorded through other comprehensive income/(loss) (18,875 ) 856 (3,295 ) Equity, arising from excess tax benefits from share-based payments — — (35,121 ) Total $ 459,988 $ 296,779 $ 222,100 Effective October 1, 2016, we adopted amended 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 this 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 prior guidance, excess tax benefits from share-based compensation payments were recorded in equity. The following table details our provision/(benefit) for income taxes for each respective period. Year ended September 30, $ in thousands 2018 2017 2016 Current: Federal $ 258,480 $ 255,555 $ 287,350 State and local 64,507 37,553 32,101 Foreign 14,424 7,620 10,640 Total current 337,411 300,728 330,091 Deferred: Federal 120,870 (11,316 ) (51,383 ) State and local (4,456 ) (959 ) (6,267 ) Foreign 135 658 (1,148 ) Total deferred 116,549 (11,617 ) (58,798 ) Total provision for income tax $ 453,960 $ 289,111 $ 271,293 A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is detailed in the following table. Year ended September 30, 2018 2017 2016 Provision calculated at statutory rate 24.5 % 35.0 % 35.0 % Impact of Tax Act 8.1 % — — State income tax, net of federal benefit 3.9 % 2.7 % 1.7 % Tax-exempt interest income (0.6 )% (1.0 )% (0.9 )% Excess tax benefits related to share-based compensation (0.9 )% (2.5 )% — Gains on company-owned life insurance policies which are not subject to tax (0.7 )% (1.7 )% (1.1 )% Federal tax credits (0.7 )% (1.6 )% (1.0 )% Other, net 1.2 % 0.3 % 0.2 % Total provision for income tax 34.8 % 31.2 % 33.9 % The following table presents our U.S. and foreign components of income including noncontrolling interests and before provision for income taxes. Year ended September 30, $ in thousands 2018 2017 2016 U.S. $ 1,261,537 $ 918,343 $ 776,722 Foreign 43,340 9,635 35,222 Income including noncontrolling interests and before provision for income taxes $ 1,304,877 $ 927,978 $ 811,944 The cumulative effects of temporary differences that give rise to significant portions of the deferred tax asset/(liability) items are detailed in the following table. September 30, $ in thousands 2018 2017 Deferred tax assets: Deferred compensation $ 179,711 $ 235,171 Allowances for loan losses and reserves for unfunded commitments 52,801 74,909 Unrealized loss associated with foreign currency translations 6,184 1,928 Unrealized loss associated with available-for-sale securities 20,059 3,342 Accrued expenses 36,200 41,545 Other 11,073 13,665 Total gross deferred tax assets 306,028 370,560 Less: valuation allowance (10 ) (9 ) Total deferred tax assets 306,018 370,551 Deferred tax liabilities: Partnership investments 5,920 (6,326 ) Goodwill and identifiable intangible assets (32,047 ) (38,364 ) Property and equipment (59,972 ) (8,046 ) Other (16,794 ) (4,329 ) Total deferred tax liabilities (102,893 ) (57,065 ) Net deferred tax assets $ 203,125 $ 313,486 We had a net deferred tax asset at both September 30, 2018 and 2017 . This asset included net operating losses that will expire between 2019 and 2030 . A valuation allowance for the fiscal year ended September 30, 2018 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 $203 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, 2018 , we considered all undistributed earnings of non-U.S. subsidiaries to be permanently reinvested. Therefore, we have not provided for any U.S. deferred income taxes. As of September 30, 2018 , we had approximately $254 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, 2018 , the current tax receivable, which is included in “Other receivables” in our Consolidated Statements of Financial Condition, was $6 million , and the current tax payable, which is included in “Other payables,” was $50 million . As of September 30, 2017 , the current tax receivable was $102 million and the current tax payable was $23 million . Uncertain tax positions We recognize the accrual of interest and penalties related to income tax matters in interest expense and other expense, respectively. As of September 30, 2018 and 2017 , accrued interest and penalties were approximately $5 million and $3 million , respectively The following table presents the aggregate changes in the balances for uncertain tax positions. Year ended September 30, $ in thousands 2018 2017 2016 Uncertain tax positions beginning of year $ 20,006 $ 22,173 $ 22,454 Increases for tax positions related to the current year 5,119 3,238 6,496 Increases for tax positions related to prior years 10,065 438 1,284 Decreases for tax positions related to prior years (1,177 ) (717 ) (1,592 ) Decreases due to lapsed statute of limitations (2,862 ) (2,497 ) (1,447 ) Decreases related to settlements (371 ) (2,629 ) (5,022 ) Uncertain tax positions end of year $ 30,780 $ 20,006 $ 22,173 Tax positions related to prior years in the preceding table included positions taken in previously filed tax returns with the Internal Revenue Service and certain states, including an analysis of the impact from the 2018 Supreme Court decision in South Dakota v. Wayfair which impacted our state nexus positions in certain states for certain entities. 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 preceding table after considering the federal tax benefit associated with any state tax provisions) was $27 million , $15 million , and $16 million at September 30, 2018 , 2017 and 2016 , respectively. We anticipate that the uncertain tax position balance will decrease by approximately $5 million over the next 12 months primarily due to the resolution of pending audits with the Internal Revenue Service. 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 2015 for federal tax returns, fiscal year 2014 for state and local tax returns and fiscal year 2014 for foreign tax returns. Various foreign and state audits in process are expected to be completed in fiscal year 2019 . |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 12 Months Ended |
Sep. 30, 2018 | |
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 fixed income and equity underwritings. As of September 30, 2018 , we had seven such open underwriting commitments, 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, 2018 , we had made commitments through the extension of formal offers totaling approximately $140 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, 2018 , $88 million of the total amount extended consisted of unfunded commitments to prospective financial advisors who had accepted our offers, or recently hired producers. 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. $ in thousands September 30, 2018 September 30, 2017 Open-end consumer lines of credit (primarily SBL) $ 7,331,544 $ 5,323,003 Commercial lines of credit $ 1,643,213 $ 1,673,272 Unfunded loan commitments $ 540,596 $ 386,950 Standby letters of credit $ 41,260 $ 39,670 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. 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. 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, 2018 , the RJ Bank subsidiary had invested $62 million of the committed amount. We had unfunded commitments to various private equity investments of $18 million as of September 30, 2018 . 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 in the following table. Fiscal year ended September 30, $ in thousands 2019 $ 95,556 2020 83,591 2021 70,487 2022 51,426 2023 39,544 Thereafter 70,160 Total $ 410,764 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 $121 million , $115 million and $97 million for fiscal years 2018 , 2017 and 2016 , 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, or guarantee obligations of RJTCF in connection with RJTCF ’s low-income housing development/rehabilitation and syndication activities. At September 30, 2018 , RJTCF had $81 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 agency MBS . At September 30, 2018 , we had $491 million principal amount of outstanding forward MBS purchase commitments which are expected to be purchased within 90 days following commitment. 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. We may be 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 contract to which we entered. These TBA securities and related purchase commitment are accounted for at fair value. As of September 30, 2018 , the fair value of the TBA securities and the estimated fair value of the purchase commitments were insignificant. Guarantees 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 up to $500 thousand per client for securities and cash held in client accounts, including 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 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 four years , RJTCF is obligated to pay the investor an amount that results in the investor achieving a minimum specified return on their investment. A $10 million financing asset is included in “Other assets” (see Note 9 for additional information), and a related $10 million liability is included in “Other payables” on our Consolidated Statements of Financial Condition as of September 30, 2018 related to this obligation. The maximum exposure to loss under this guarantee was $10 million as of September 30, 2018 , which represents the undiscounted future payments due the investor. We guarantee the debt of one of our private equity investments. The amount of such debt, including the undrawn portion of a revolving credit facility, is approximately $15 million . The debt is secured by substantially all of the assets of the borrower. Legal and regulatory matter contingencies In addition to any matters that may be specifically described in the following sections, 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. RJF and certain of its subsidiaries are subject to regular reviews and inspections by regulatory authorities and self-regulatory organizations. 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. 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. 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 may from time to time include in any descriptions of individual matters herein 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 as of September 30, 2018 , we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $150 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. Legal matters On February 17, 2015, Jyll Brink (“Brink”) filed a putative class action complaint in the U.S. District Court for the Southern District of Florida (the “District Court”) under the caption Jyll Brink v. Raymond James & Associates, Inc. (the “Brink Complaint”). The Brink Complaint alleges that Brink, a former customer of RJ&A, was charged a fee in her Passport Investment Account, and that the fee included an unauthorized and undisclosed profit to RJ&A in violation of its customer agreement and applicable industry standards. The Passport Investment Account is a fee-based account in which clients pay asset-based advisory fees and certain processing fees for ongoing investment advice and monitoring of securities holdings. The Brink Complaint seeks, among other relief, damages in the amount of the difference between the actual cost of processing a trade, as alleged by Brink, and the fee charged by RJ&A. On May 9, 2016, RJ&A filed a motion to dismiss the Brink Complaint for lack of subject matter jurisdiction pursuant to the Securities Litigation Uniform Standards Act (“SLUSA”). On June 6, 2016, the District Court entered an order granting the motion and dismissing the Brink Complaint on SLUSA preclusion grounds. On June 24, 2016, Brink filed a notice of appeal of the order of dismissal with the United States Court of Appeals for the Eleventh Circuit (the “Appellate Court”). On June 8, 2018, the Appellate Court issued its opinion reversing the order of dismissal and remanding the case to the District Court for further proceedings consistent with the opinion. On October 19, 2018, the District Court certified a class of former and current customers of RJ&A who executed a Passport Agreement and were charged such fees during the period between February 17, 2010 and February 17, 2015. The matter is scheduled for trial commencing April 15, 2019. RJ&A believes the claims in the Brink Complaint are without merit and is vigorously defending the action. On February 11, 2016, Caleb Wistar (“Wistar”) and Ernest Mayeaux (“Mayeaux”) filed a putative class action complaint in the District Court under the caption Caleb Wistar and Ernest Mayeaux v. Raymond James Financial Services, Inc. and Raymond James Financial Services Advisors, Inc. (as subsequently amended, the “Wistar Complaint”). Similar to the Brink Complaint, the Wistar Complaint alleges that Wistar and Mayeaux, former customers of RJFS and Raymond James Financial Services Advisors, Inc. (“RJFSA”), were charged a fee in RJFS and RJFSA’s Passport Investment Account and that the fee included an unauthorized and undisclosed profit to RJFS and RJFSA in violation of its customer agreement and applicable industry standards. The Wistar Complaint seeks, among other relief, damages in the amount of the difference between the actual cost of processing a trade, as alleged by Wistar and Mayeaux, and the fee charge by RJFS and RJFSA. On September 6, 2018, RJFS and RJFSA filed a motion to dismiss the Wistar Complaint, which motion is pending. The matter is scheduled for trial commencing September 16, 2019. RJFS and RJFSA believe the claims in the Wistar Complaint are without merit and are vigorously defending the action. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Other comprehensive income/(loss) The activity in OCI, net of the related tax effect, was as follows. Year ended September 30, $ in thousands 2018 2017 2016 Net change in unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses $ (43,221 ) $ 1,684 $ (5,576 ) Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges (3,315 ) 15,618 2,179 Net change in unrealized gain/(loss) on cash flow hedges 34,806 23,232 (11,833 ) Net other comprehensive income/(loss) $ (11,730 ) $ 40,534 $ (15,230 ) Accumulated other comprehensive income/(loss) All of the components of OCI, net of tax, were attributable to RJF . The following table presents the changes, and the related tax effects, of each component of AOCI. $ in thousands Net investment hedges Currency translations Sub-total: net investment hedges and currency translations Available-for-sale securities Cash flow hedges Total Year ended September 30, 2018 Accumulated other comprehensive income/(loss) as of the beginning of year $ 60,201 $ (79,677 ) $ (19,476 ) $ (2,472 ) $ 6,749 $ (15,199 ) Other comprehensive income/(loss) before reclassifications and taxes 37,853 (31,086 ) 6,767 (55,480 ) 46,680 (2,033 ) Amounts reclassified from accumulated other comprehensive income/(loss), before tax — — — (4,684 ) 657 (4,027 ) Pre-tax net other comprehensive income/(loss) 37,853 (31,086 ) 6,767 (60,164 ) 47,337 (6,060 ) Income tax effect (10,135 ) — (10,135 ) 18,875 (14,768 ) (6,028 ) Reclassification of tax effects related to the Tax Act 53 — 53 (1,932 ) 2,237 358 Net other comprehensive income/(loss) for the year, net of tax 27,771 (31,086 ) (3,315 ) (43,221 ) 34,806 (11,730 ) Accumulated other comprehensive income/(loss) as of the end of year $ 87,972 $ (110,763 ) $ (22,791 ) $ (45,693 ) $ 41,555 $ (26,929 ) Year ended September 30, 2017 Accumulated other comprehensive income/(loss) as of the beginning of year $ 86,482 $ (121,576 ) $ (35,094 ) $ (4,156 ) $ (16,483 ) $ (55,733 ) Other comprehensive income/(loss) before reclassifications and taxes (41,997 ) 43,541 1,544 443 31,843 33,830 Amounts reclassified from accumulated other comprehensive income/(loss), before tax — 6,647 6,647 2,097 5,628 14,372 Pre-tax net other comprehensive income/(loss) (41,997 ) 50,188 8,191 2,540 37,471 48,202 Income tax effect 15,716 (8,289 ) 7,427 (856 ) (14,239 ) (7,668 ) Net other comprehensive income/(loss) for the year, net of tax (26,281 ) 41,899 15,618 1,684 23,232 40,534 Accumulated other comprehensive income/(loss) as of the end of the year $ 60,201 $ (79,677 ) $ (19,476 ) $ (2,472 ) $ 6,749 $ (15,199 ) During the year ended September 30, 2018 , we adopted new accounting guidance that allows for a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act. The reclassification is the remeasurement difference between U.S. deferred tax assets at the historical federal statutory tax rate of 35% and the new federal statutory tax rate of 21%. The amount reclassified from AOCI to retained earnings was insignificant for the year ended September 30, 2018 . See Note 2 for additional information. Our policy is to release tax effects remaining in AOCI on an individual security basis. 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 accumulated other comprehensive income/(loss) The following table presents the income statement line items impacted by reclassifications out of AOCI, and the related tax effects. Accumulated other comprehensive income/(loss) components: $ in thousands Increase/(decrease) in amounts reclassified from accumulated other comprehensive income/(loss) Affected line items in income statement Year ended September 30, 2018 Available-for-sale securities: Auction rate securities $ (4,684 ) Other revenue RJ Bank cash flow hedges 657 Interest expense Total before tax (4,027 ) Income tax effect 1,118 Provision for income taxes Total reclassifications for the year, net of tax $ (2,909 ) Year ended September 30, 2017 Available-for-sale securities: Auction rate securities $ 1,458 Other revenue RJ Bank available-for-sale securities 639 Other revenue RJ Bank cash flow hedges 5,628 Interest expense Currency translations 6,647 Other expense Total before tax 14,372 Income tax effect (5,460 ) Provision for income taxes Total reclassifications for the year, net of tax $ 8,912 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, 2018 | |
Interest Income (Expense), Net [Abstract] | |
INTEREST INCOME AND INTEREST EXPENSE | INTEREST INCOME AND INTEREST EXPENSE The following table details the components of interest income and interest expense. Year ended September 30, $ in thousands 2018 2017 2016 Interest income: Cash segregated pursuant to regulations $ 52,561 $ 37,270 $ 22,287 Securities loaned 14,548 14,049 8,777 Trading instruments 23,016 21,068 19,362 Available-for-sale securities 52,420 27,946 7,596 Margin loans 107,201 85,699 68,712 Bank loans, net of unearned income 722,339 572,171 487,366 Loans to financial advisors 15,078 13,333 8,207 Corporate cash and all other 56,830 30,590 18,090 Total interest income 1,043,993 802,126 640,397 Interest expense: Bank deposits 65,557 17,184 10,218 Securities borrowed 7,630 6,690 3,174 Trading instruments sold but not yet purchased 7,344 6,138 5,035 Brokerage client payables 15,367 4,884 2,084 Other borrowings 22,006 16,559 12,957 Senior notes payable 72,708 94,665 78,533 Other 10,891 7,658 4,055 Total interest expense 201,503 153,778 116,056 Net interest income 842,490 648,348 524,341 Bank loan loss provision (20,481 ) (12,987 ) (28,167 ) Net interest income after bank loan loss provision $ 822,009 $ 635,361 $ 496,174 Interest expense related to bank deposits in the preceding table for the years ended September 30, 2018 , 2017 and 2016 excludes interest expense associated with affiliate deposits, which has been eliminated in consolidation. |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION | 12 Months Ended |
Sep. 30, 2018 | |
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 expense throughout the year. Effective October 1, 2018, benefits become fully vested after five 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, 2018 and 2017 was approximately 4,611,000 and 4,690,000 , respectively. The market value of our common stock held by the ESOP at September 30, 2018 was approximately $424 million , of which approximately $5 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 (see Note 9 for information regarding the carrying value of these company-owned life 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. Company-owned life insurance 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, 2018 , and 2017 ). Compensation expense associated with all of the qualified and non-qualified plans described above totaled $154 million , $131 million and $117 million for the fiscal years ended September 30, 2018 , 2017 and 2016 , 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. Our share-based compensation policies are described in Note 2. Stock option 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 granted to our independent contractors were insignificant as of September 30, 2018 . Stock options 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. The following table presents expense and income tax benefit related to our stock options granted to employees and independent contractor financial advisors for the periods indicated. Year ended September 30, $ in thousands 2018 2017 2016 Total share-based expense $ 9,780 $ 13,597 $ 11,648 Income tax benefit related to share-based expense $ 861 $ 1,783 $ 1,181 For the year ended September 30, 2018 , we realized $1 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. 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. There were no new employee stock options granted in the year ended September 30, 2018 . The following weighted-average assumptions were used for stock options granted in the years ended September 30, 2017 and 2016 . Year ended September 30, 2017 2016 Dividend yield 1.03 % 1.41 % Expected volatility 30.91 % 28.85 % Risk-free interest rate 1.81 % 1.65 % Expected lives (in years) 5.4 5.4 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. The following table presents a summary of option activity for grants to employees for the year ended September 30, 2018 . Options for shares (in thousands) Weighted- average exercise price (per share) Weighted- average remaining contractual term (in years) Aggregate intrinsic value ($ in thousands) Outstanding as of beginning of year 2,836 $ 51.63 Exercised (739 ) $ 46.65 Forfeited (70 ) $ 53.24 Outstanding as of end of year 2,027 $ 53.35 2.9 $ 78,438 Exercisable as of end of year 728 $ 47.85 2.2 $ 32,195 The following stock option activity occurred under the 2012 Plan for grants to employees for the periods indicated. Year ended September 30, $ in thousands, except per option amounts 2018 2017 2016 Weighted-average grant date fair value per option N/A $ 19.96 $ 13.96 Total intrinsic value of stock options exercised $ 31,797 $ 42,178 $ 16,273 Total grant date fair value of stock options vested $ 14,054 $ 10,768 $ 7,690 The following table presents pre-tax compensation costs 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, 2018 . Pre-tax compensation costs not yet recognized (in thousands) Remaining weighted-average amortization period (in years) Employees $ 7,449 2.0 Independent contractor financial advisors $ 3,373 3.1 Cash received from stock option exercises during the year ended September 30, 2018 was $34 million . Restricted stock and RSU 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 the Restricted Stock 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 our Canadian subsidiaries. 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. We grant RSUs annually to non-employee members of our Board of Directors. The RSUs granted to these Directors vest over a one year period from their grant date or upon retirement from our Board. The following table presents the restricted equity award activity which includes restricted stock and RSUs for grants to employees and members of our Board of Directors for the year ended September 30, 2018 . Shares/Units (in thousands) Weighted- average grant date fair value (per share) Non-vested as of beginning of year 4,744 $ 58.94 Granted 1,225 $ 87.33 Vested (1,089 ) $ 49.02 Forfeited (97 ) $ 64.31 Non-vested as of end of year 4,783 $ 68.39 The following table presents expense and income tax benefits related to our restricted equity awards granted to our employees and members of our Board of Directors for the periods indicated. Year ended September 30, $ in thousands 2018 2017 2016 Total share-based expense $ 88,602 $ 78,624 $ 62,674 Income tax benefits related to share-based expense $ 23,244 $ 27,658 $ 21,979 Total share-based expense for the year ended September 30, 2017 included $5 million , which was 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, 2018 , we realized $10 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 of September 30, 2018 , there was $140 million of total pre-tax compensation costs 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 3.0 years. The total fair value of shares and unit awards vested under this plan during the year ended September 30, 2018 was $51 million . There were no outstanding RSUs related to our independent contractor financial advisors as of September 30, 2018 . RSU 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, 2018 . Units (in thousands) Non-vested DBRSUs at beginning of year 1,493 Vested (77 ) Forfeited (44 ) Non-vested DBRSUs at end of year 1,372 The per unit fair values of the DBRSU s at the AB Closing Date and at September 30, 2018 were $14.90 and $11.36 , respectively. As of September 30, 2018 , there was a $5 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 1.1 years. As of September 30, 2018 , there was a $16 million derivative liability included in “Derivative liabilities” in our Consolidated Statements of Financial Condition based on the September 30, 2018 per share price of DB shares of $11.36 . The following table presents the net impact of the DBRSU s in our Consolidated Statements of Income and Comprehensive Income, including the related income tax effects, for the periods indicated. Year ended September 30, $ in thousands 2018 2017 2016 Amortization of DBRSU prepaid compensation asset $ 4,624 $ 5,270 $ 355 Increase/(decrease) in fair value of derivative liability (8,192 ) 8,031 (2,457 ) Net expense/(gain) before tax $ (3,568 ) $ 13,301 $ (2,102 ) Income tax benefit/(expense) $ (1,438 ) $ 4,963 $ (799 ) The preceding table includes the impact of the DBRSUs forfeited during the periods indicated. The table also includes 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. We held shares of DB as of September 30, 2018 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 offset a portion of the gains/losses on the DBRSU s. 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 336,000 , 343,000 and 557,000 shares to employees during the years ended September 30, 2018 , 2017 and 2016 , respectively. The compensation cost is calculated as the value of the 15% discount from market value and was $5 million for the year ended September 30, 2018 , and $4 million for each of the years ended September 30, 2017 and 2016 . 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. Company-owned life insurance 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 . Company-owned life insurance is the primary source of funding for this plan. |
REGULATORY AND CAPITAL REQUIREM
REGULATORY AND CAPITAL REQUIREMENTS | 12 Months Ended |
Sep. 30, 2018 | |
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 Fed. 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, as well as 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. 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. 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 began phasing in 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, 2018 , 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 following table. Actual Requirement for capital adequacy purposes To be well capitalized under regulatory provisions $ in thousands Amount Ratio Amount Ratio Amount Ratio RJF as of September 30, 2018: CET1 $ 5,717,748 24.3 % $ 1,057,404 4.5 % $ 1,527,362 6.5 % Tier 1 capital $ 5,717,748 24.3 % $ 1,409,872 6.0 % $ 1,879,830 8.0 % Total capital $ 5,940,703 25.3 % $ 1,879,830 8.0 % $ 2,349,787 10.0 % Tier 1 leverage $ 5,717,748 15.8 % $ 1,451,360 4.0 % $ 1,814,200 5.0 % RJF as of September 30, 2017: CET1 $ 5,081,335 23.0 % $ 994,950 4.5 % $ 1,437,150 6.5 % Tier 1 capital $ 5,081,335 23.0 % $ 1,326,600 6.0 % $ 1,768,800 8.0 % Total capital $ 5,293,331 23.9 % $ 1,768,800 8.0 % $ 2,211,000 10.0 % Tier 1 leverage $ 5,081,335 15.0 % $ 1,359,168 4.0 % $ 1,698,960 5.0 % The increase in RJF ’s Tier 1 capital and Total capital ratios at September 30, 2018 compared to September 30, 2017 was primarily the result of positive earnings during the year ended September 30, 2018 , partially offset by an increase in goodwill and identifiable intangible assets related to the Scout Group acquisition and the growth of loans at RJ Bank . 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 following table. Actual Requirement for capital adequacy purposes To be well capitalized under regulatory provisions $ in thousands Amount Ratio Amount Ratio Amount Ratio RJ Bank as of September 30, 2018: CET1 $ 2,028,525 12.7 % $ 721,112 4.5 % $ 1,041,607 6.5 % Tier 1 capital $ 2,028,525 12.7 % $ 961,483 6.0 % $ 1,281,978 8.0 % Total capital $ 2,228,986 13.9 % $ 1,281,978 8.0 % $ 1,602,472 10.0 % Tier 1 leverage $ 2,028,525 8.8 % $ 926,390 4.0 % $ 1,157,987 5.0 % RJ Bank as of September 30, 2017: CET1 $ 1,821,306 12.5 % $ 654,901 4.5 % $ 945,968 6.5 % Tier 1 capital $ 1,821,306 12.5 % $ 873,201 6.0 % $ 1,164,268 8.0 % Total capital $ 2,003,461 13.8 % $ 1,164,268 8.0 % $ 1,455,335 10.0 % Tier 1 leverage $ 1,821,306 8.9 % $ 816,304 4.0 % $ 1,020,379 5.0 % The increase in RJ Bank ’s Tier 1 and Total capital ratios at September 30, 2018 compared to September 30, 2017 was primarily the result of positive earnings during the year, partially offset by 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, 2018 ) 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 2018 2017 Raymond James & Associates, Inc.: (Alternative Method elected) Net capital as a percent of aggregate debit items 28.22 % 21.37 % Net capital $ 934,612 $ 589,420 Less: required net capital (66,239 ) (55,164 ) Excess net capital $ 868,373 $ 534,256 The following table presents the net capital position of RJFS . September 30, $ in thousands 2018 2017 Raymond James Financial Services, Inc.: (Alternative Method elected) Net capital $ 33,393 $ 34,488 Less: required net capital (250 ) (250 ) Excess net capital $ 33,143 $ 34,238 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 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, 2018 or 2017 . The following table presents the risk adjusted capital of RJ Ltd. (in Canadian dollars). September 30, $ in thousands 2018 2017 Raymond James Ltd.: Risk adjusted capital before minimum $ 106,160 $ 108,985 Less: required minimum capital (250 ) (250 ) Risk adjusted capital $ 105,910 $ 108,735 Raymond James Trust, N.A. (“RJ Trust”) is regulated by the OCC and is required to maintain sufficient capital. As of September 30, 2018 and 2017 , RJ Trust met the requirements. As of September 30, 2018 , 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 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents the computation of basic and diluted earnings per common share. Year ended September 30, $ in thousands, except per share amounts 2018 2017 2016 Income for basic earnings per common share: Net income attributable to RJF $ 856,695 $ 636,235 $ 529,350 Less allocation of earnings and dividends to participating securities (1,463 ) (1,376 ) (1,256 ) Net income attributable to RJF common shareholders $ 855,232 $ 634,859 $ 528,094 Income for diluted earnings per common share: Net income attributable to RJF $ 856,695 $ 636,235 $ 529,350 Less allocation of earnings and dividends to participating securities (1,433 ) (1,350 ) (1,236 ) Net income attributable to RJF common shareholders $ 855,262 $ 634,885 $ 528,114 Common shares: Average common shares in basic computation 145,271 143,275 141,773 Dilutive effect of outstanding stock options and certain RSUs 3,567 3,372 2,740 Average common shares used in diluted computation 148,838 146,647 144,513 Earnings per common share: Basic $ 5.89 $ 4.43 $ 3.72 Diluted $ 5.75 $ 4.33 $ 3.65 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 527 1,657 3,255 The allocation of earnings and dividends to participating securities in the preceding 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 RSUs and amounted to weighted-average shares of 254 thousand , 317 thousand and 346 thousand for the years ended September 30, 2018 , 2017 and 2016 , respectively. Dividends paid to participating securities were insignificant for the years ended September 30, 2018 , 2017 , and 2016 . 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 detailed in the following table for each respective period. Year ended September 30, 2018 2017 2016 Dividends per common share - declared $ 1.10 $ 0.88 $ 0.80 Dividends per common share - paid $ 1.02 $ 0.86 $ 0.78 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We currently operate through the following five segments: PCG; 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 . Segment results include allocations of most corporate overhead and benefits expenses to each segment. Refer to the following discussion of the Other segment for a description of the corporate expenses that are not allocated to segments. Intersegment revenues, expenses, receivables and payables are eliminated upon consolidation. The PCG segment provides financial planning and securities transaction services through our branch office systems throughout the U.S. , Canada and the United Kingdom. The PCG segment includes revenues from securities transaction services, including the sale of equities, mutual funds, fixed income products and insurance products to individual clients. In addition, this segment includes revenues from investment advisory services, for which we earn a fee generally based on a percentage of assets in client accounts. The segment includes net interest earnings on client margin loans and cash balances, as well as certain fee revenues generated by the RJBDP , our multi-bank sweep program. Our Capital Markets segment conducts fixed income and equity institutional sales and trading activities, equity research, investment banking and the syndication and related management of investments that qualify for tax credits. We primarily conduct these activities in the U.S., Canada and Europe. This segment also includes our debt and equity underwritings, merger & acquisition and advisory services, public finance activities, and the operations of RJTCF . The Asset Management segment provides investment advisory and related administrative services to our PCG clients through our asset management services division (“AMS”) and through Raymond James Trust, N.A. (“RJ Trust”). The segment also provides investment advisory and asset management services to individual and institutional investors, including through third-party broker-dealers, through Carillon Tower Advisers and its affiliates (collectively, “Carillon Tower”), which also sponsors a family of mutual funds. We earn investment advisory fees and related administrative fees based on assets under management in both AMS and Carillon Tower. The Asset Management segment also earns administrative fees on certain asset-based programs offered to PCG clients which are not managed by our Asset Management segment, but for which the segment provides administrative support. RJ Bank provides corporate loans, 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. RJ Bank generates net interest revenue principally through the interest income earned on loans and an investment portfolio of securities, 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 2018 2017 2016 Revenues: Private Client Group $ 5,120,831 $ 4,437,588 $ 3,626,718 Capital Markets 991,604 1,034,235 1,017,151 Asset Management 654,418 487,735 404,421 RJ Bank 815,284 627,845 517,243 Other 59,992 65,498 46,291 Intersegment eliminations (166,308 ) (128,026 ) (90,704 ) Total revenues $ 7,475,821 $ 6,524,875 $ 5,521,120 Income/(loss) excluding noncontrolling interests and before provision for income taxes: Private Client Group $ 576,094 $ 372,950 $ 340,564 Capital Markets 90,647 141,236 139,173 Asset Management 235,336 171,736 132,158 RJ Bank 491,779 409,303 337,296 Other (83,201 ) (169,879 ) (148,548 ) Pre-tax income excluding noncontrolling interests 1,310,655 925,346 800,643 Net income/(loss) attributable to noncontrolling interests (5,778 ) 2,632 11,301 Income including noncontrolling interests and before provision for income taxes $ 1,304,877 $ 927,978 $ 811,944 No individual client accounted for more than ten percent of total revenues in any of the years presented. Year ended September 30, $ in thousands 2018 2017 2016 Net interest income/(expense): Private Client Group $ 165,304 $ 136,756 $ 97,042 Capital Markets 4,422 6,543 9,432 Asset Management 1,974 623 183 RJ Bank 704,361 574,796 478,690 Other (33,571 ) (70,370 ) (61,006 ) Net interest income $ 842,490 $ 648,348 $ 524,341 The following table presents our total assets on a segment basis. September 30, $ in thousands 2018 2017 Total assets: Private Client Group $ 10,173,186 $ 9,967,320 Capital Markets 2,278,977 2,396,033 Asset Management 386,810 151,111 RJ Bank 22,922,355 20,611,898 Other 1,651,596 1,757,094 Total $ 37,412,924 $ 34,883,456 Total assets in the PCG segment included $276 million and $277 million of goodwill at September 30, 2018 and 2017 , respectively. Total assets in the Capital Markets segment included $133 million and $134 million of goodwill at September 30, 2018 and 2017 , respectively. Total assets in the Asset Management segment included $69 million of goodwill as of September 30, 2018 , which was entirely attributable of our fiscal year 2018 acquisition of the Scout Group. We have operations in the U.S. , Canada and Europe. Substantially all long-lived assets are located in the U.S. The following table presents our revenues and income before provision for income taxes and excluding noncontrolling interests, classified by major geographic area in which they were earned. Year ended September 30, $ in thousands 2018 2017 2016 Revenues: U.S. $ 6,914,117 $ 6,057,971 $ 5,119,536 Canada 422,598 354,685 278,652 Europe 139,106 107,831 85,718 Other — 4,388 37,214 Total $ 7,475,821 $ 6,524,875 $ 5,521,120 Pre-tax income/(loss) excluding noncontrolling interests: U.S. $ 1,268,769 $ 919,324 $ 778,351 Canada 47,403 14,138 20,243 Europe (5,517 ) (3,577 ) (3,791 ) Other — (4,539 ) 5,840 Total $ 1,310,655 $ 925,346 $ 800,643 The following table presents our total assets classified by major geographic area in which they were held. September 30, $ in thousands 2018 2017 Total assets: U.S. $ 34,650,260 $ 32,200,852 Canada 2,673,452 2,592,480 Europe 89,148 81,090 Other 64 9,034 Total $ 37,412,924 $ 34,883,456 Total assets in the U.S. included $426 million and $356 million of goodwill at September 30, 2018 and 2017 , respectively. Total assets in Canada included $43 million and $45 million of goodwill at September 30, 2018 and 2017 , respectively. Total assets in Europe included $9 million and $10 million of goodwill at September 30, 2018 and 2017 , respectively. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | 12 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information 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 activities. The Parent’s primary activities include investments in subsidiaries and corporate investments, including cash management, company-owned life insurance policies 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, 2018 , each of these broker-dealer subsidiaries far exceeded their minimum net capital requirements (see Note 21 for further information). Net assets of approximately $2.81 billion as of September 30, 2018 were 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 $1.40 billion and $1.29 billion as of September 30, 2018 and 2017 , respectively, 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 $277 million as of September 30, 2018 , of which $254 million was available on demand and without restriction. As of September 30, 2017 , $192 million was held in depository accounts at RJ Bank , of which $152 million 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 2018 2017 Assets: Cash and cash equivalents $ 694,695 $ 528,397 Assets segregated pursuant to regulations 23,411 40,145 Intercompany receivables from subsidiaries (primarily nonbank subsidiaries) 1,156,276 1,167,084 Investments in consolidated subsidiaries: Bank subsidiary 2,020,710 1,823,342 Non-bank subsidiaries 4,031,429 3,448,191 Property and equipment, net 14,173 14,457 Goodwill and identifiable intangible assets, net 31,954 31,954 Other assets 659,901 624,452 Total assets $ 8,632,549 $ 7,678,022 Liabilities and equity: Other payables $ 93,583 $ 80,576 Intercompany payables to subsidiaries (primarily nonbank subsidiaries) 140,949 52,699 Accrued compensation and benefits 479,920 414,195 Senior notes payable 1,549,636 1,548,839 Total liabilities 2,264,088 2,096,309 Equity 6,368,461 5,581,713 Total liabilities and equity $ 8,632,549 $ 7,678,022 Of the total intercompany receivable from non-bank subsidiaries, $735 million and $783 million at September 30, 2018 and 2017 , 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 2018 2017 2016 Revenues: Dividends from non-bank subsidiaries $ 225,492 $ 183,347 $ 248,020 Dividends from bank subsidiary 130,000 125,000 75,000 Interest from subsidiaries 25,234 16,404 8,999 Interest income 4,292 1,838 807 Other 19,396 25,323 4,654 Total revenues 404,414 351,912 337,480 Interest expense (73,907 ) (94,921 ) (78,089 ) Net revenues 330,507 256,991 259,391 Non-interest expenses: Compensation and benefits 67,621 61,765 54,664 Communications and information processing 8,862 8,741 6,330 Occupancy and equipment costs 1,156 677 636 Business development 19,833 18,773 18,364 Losses on extinguishment of debt — 45,746 — Other 17,411 14,707 9,792 Intercompany allocations and charges (31,817 ) (30,643 ) (40,424 ) Total non-interest expenses 83,066 119,766 49,362 Income before income tax benefit and equity in undistributed net income of subsidiaries 247,441 137,225 210,029 Income tax benefit (11,436 ) (85,529 ) (64,658 ) Income before equity in undistributed net income of subsidiaries 258,877 222,754 274,687 Equity in undistributed net income of subsidiaries 597,818 413,481 254,663 Net income $ 856,695 $ 636,235 $ 529,350 The following table presents the Parent’s statements of cash flows. Year ended September 30, $ in thousands 2018 2017 2016 Cash flows from operating activities: Net income $ 856,695 $ 636,235 $ 529,350 Adjustments to reconcile net income to net cash provided by operating activities: Loss/(gain) on investments 1,196 (14,588 ) (11,538 ) (Gain)/loss on company-owned life insurance policies (37,173 ) (47,920 ) (25,642 ) Equity in undistributed net income of subsidiaries (597,818 ) (413,481 ) (254,663 ) Losses on extinguishment of debt — 45,746 — Other 114,294 97,616 73,798 Net change in: Assets segregated pursuant to regulations 16,734 (40,145 ) — Intercompany receivables 6,468 178,631 19,641 Other assets 47,411 80,561 97,067 Intercompany payables 88,251 38,577 (115,657 ) Other payables 13,009 (764 ) 2,396 Accrued compensation and benefits 65,725 68,180 58,520 Net cash provided by operating activities 574,792 628,648 373,272 Cash flows from investing activities: (Investments in)/distributions from subsidiaries, net (205,311 ) (36,520 ) (637,689 ) Advances to subsidiaries, net 4,340 (117,670 ) (394,383 ) Proceeds from sales/(purchases) of investments, net 12,148 4,836 24,609 Purchase of investments in company-owned life insurance policies, net (69,711 ) (40,661 ) (49,488 ) Net cash used in investing activities (258,534 ) (190,015 ) (1,056,951 ) Cash flows from financing activities: Proceeds from borrowing on the RJF Credit Facility 300,000 — — Repayment of borrowings on the RJF Credit Facility (300,000 ) — — Proceeds from senior note issuances, net of debt issuance costs paid — 508,473 792,221 Extinguishment of senior notes payable — (650,000 ) (250,000 ) Premium paid on extinguishment of senior notes payable — (36,892 ) — Exercise of stock options and employee stock purchases 63,347 57,462 43,331 Purchase of treasury stock (61,971 ) (34,055 ) (162,502 ) Dividends on common stock (151,336 ) (127,202 ) (113,435 ) Net cash provided by/(used in) financing activities (149,960 ) (282,214 ) 309,615 Net increase/(decrease) in cash and cash equivalents 166,298 156,419 (374,064 ) Cash and cash equivalents at beginning of year 528,397 371,978 746,042 Cash and cash equivalents at end of year $ 694,695 $ 528,397 $ 371,978 Supplemental disclosures of cash flow information: Cash paid for interest $ 77,736 $ 98,554 $ 74,568 Cash paid for income taxes, net $ 162,867 $ 92,568 $ 27,397 Supplemental disclosures of noncash activity: Investments in subsidiaries, net $ 356 $ 24,352 $ 781 Losses on extinguishment of debt $ — $ 8,854 $ — |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
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 10 . 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. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year’s presentation. |
Recognition of revenues | Recognition of revenues Securities commissions and fees - The significant components of our securities commissions and fees revenue include the following: a. Commission revenues and related expenses from securities transactions are recorded on a trade date basis. Commission revenues are recorded at the amount charged to clients which, in certain cases, may include 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. Trailing commissions from mutual funds and variable annuities/insurance products, which are recorded over the period earned. d. Insurance commission revenues and related expenses are recognized when the delivery of the insurance policy is confirmed by the carrier, the premium is remitted to the insurance company and the policy requirements are met. e. Annuity commission revenues and related expenses are recognized when the signed annuity application and premium is submitted to the annuity carrier. 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 and private placements. 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 banking revenues also include syndication fees on the sale of low income housing tax credit fund interests. 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 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, servicing fees and fees generated from unaffiliated banks related to our Raymond James Bank Deposit Program (“RJBDP”), a multi-bank sweep program. Transaction fees are earned and collected from clients as trades are executed. Annual account fees such as IRA fees and distribution fees are recognized as earned over the term of the contract. Fees related to RJBDP and servicing fees, such as omnibus and education and marketing support fees paid to us for marketing and administrative services provided to mutual fund and insurance/annuity companies, are recognized as earned. |
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. |
Cash segregated pursuant to regulations and other segregated assets | Cash segregated pursuant to regulations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Raymond James & Associates, Inc. (“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. The amounts included in Cash segregated pursuant to regulations in our consolidated statements of financial condition represented the amounts of cash actually on deposit in our segregated reserve accounts for regulatory purposes as of each respective period-end. In addition, Raymond James Ltd. (“RJ Ltd.”) is required to hold client Registered Retirement Savings Plan funds in trust. Raymond James Bank, N.A. (“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 |
Securities purchased under agreements to resell and securities sold under agreements to repurchase | Securities purchased under agreements to resell and securities sold under agreements to repurchase 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 under repurchase agreements, we receive collateral with a fair value equal to or in excess of the principal amount loaned under such 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. In addition, under repurchase agreements, we are required to post collateral in an amount that exceeds the carrying value of these agreements. In the event that the market value of the securities we pledge as collateral declines, we may have to post additional collateral or reduce borrowing amounts. |
Securities borrowed and securities loaned | Securities borrowed and securities loaned We act as an intermediary between broker-dealers and other financial institutions whereby we borrow securities from one broker-dealer and then either lend them to another broker-dealer or use them to cover short positions. Where permitted, we have also loaned, to broker-dealers and other financial institutions, securities owned by the firm or our clients and others we have received as collateral. 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 collateral agreements and financings. |
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. 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). 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. These instruments are generally valued using discounted cash flow techniques, market multiples, or investment-specific events. 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 values for certain of our financial instruments are 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 and auction-rate securities (“ARS”), to be uncertain or inactive as of both September 30, 2018 and 2017. As a result, the valuation of these financial instruments included 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 low volume of trades, 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: Trading instruments and trading instruments sold but not yet purchased - Trading instruments and trading instruments sold but not yet purchased are comprised primarily of the financial instruments held by our broker-dealer subsidiaries and include debt securities, equity securities, brokered certificates of deposit, and other securities. 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. 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. Securities valued using these techniques are classified within Level 2 of the fair value hierarchy. Included within trading instruments are to be announced (“TBA”) security contracts with investors for generic mortgage backed securities (“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 collateralized mortgage obligations (“CMOs”) held by RJ Bank. 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) (“OCI”) 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. 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 have the ability and intent 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 (“OTTI”) 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 do not consider these securities (MBS and CMOs) OTTI due to the guarantee of the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities. We estimate the portion of loss attributable to credit using a discounted cash flow model. 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. We also hold ARS which 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 valuation techniques use unobservable inputs 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 our 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. 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. Any realized or unrealized gains or losses, including interest, are recorded in “Net trading profit” within our 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 in which Raymond James Financial Products, Inc. (“RJFP”), a wholly owned subsidiary, enters into interest rate derivative transactions with clients. For every derivative transaction RJFP enters into with a client, it also 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. 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 derivative, there is no net impact in 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 in our Consolidated Statements of Income and Comprehensive Income. RJ Bank derivatives: We enter into three-month forward foreign exchange contracts to hedge the risks related to RJ Bank’s investment in their Canadian subsidiary, as well as their risk due to holdings of cash and other assets and liabilities resulting from transactions denominated in currencies other than the U.S. dollar. The majority of these derivatives are designated as net investment hedges. 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 are recorded in earnings in our 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 and measured using the hypothetical derivatives method. As the terms of the hedging instrument and hypothetical derivative generally match at inception, the hedge is expected to be highly effective. 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 Federal Home Loan Bank of Atlanta (“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 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 the hedged borrowings. Hedge effectiveness is assessed at inception and at each reporting period utilizing regression analysis. As the key terms of the hedging instrument and hedged transaction match at inception, management expects the hedges to be effective while they are outstanding. The fair value of these interest rate hedges is determined by obtaining valuations from a third-party pricing service. These third-party valuations are based on observable inputs such as time value and yield curve. We validate these observable inputs by preparing an independent calculation using a secondary third-party model. We classify these derivative instruments within Level 2 of the fair value hierarchy. 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 private equity funds which we sponsor. The private equity 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 plans, term deposits with Canadian financial institutions, and securities pledged as collateral with clearing organizations. 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, which is 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 collateralized mortgage obligations (“CMOs”) held by RJ Bank. 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) (“OCI”) 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. 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 have the ability and intent 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 (“OTTI”) 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 do not consider these securities (MBS and CMOs) OTTI due to the guarantee of the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities. We estimate the portion of loss attributable to credit using a discounted cash flow model. 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. We also hold ARS which 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 valuation techniques use unobservable inputs and accordingly are classified within Level 3 of the fair value hierarchy. |
Derivative assets and derivative liabilities | 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 our 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. 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. Any realized or unrealized gains or losses, including interest, are recorded in “Net trading profit” within our 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 in which Raymond James Financial Products, Inc. (“RJFP”), a wholly owned subsidiary, enters into interest rate derivative transactions with clients. For every derivative transaction RJFP enters into with a client, it also 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. 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 derivative, there is no net impact in 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 in our Consolidated Statements of Income and Comprehensive Income. RJ Bank derivatives: We enter into three-month forward foreign exchange contracts to hedge the risks related to RJ Bank’s investment in their Canadian subsidiary, as well as their risk due to holdings of cash and other assets and liabilities resulting from transactions denominated in currencies other than the U.S. dollar. The majority of these derivatives are designated as net investment hedges. 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 are recorded in earnings in our 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 and measured using the hypothetical derivatives method. As the terms of the hedging instrument and hypothetical derivative generally match at inception, the hedge is expected to be highly effective. 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 Federal Home Loan Bank of Atlanta (“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 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 the hedged borrowings. Hedge effectiveness is assessed at inception and at each reporting period utilizing regression analysis. As the key terms of the hedging instrument and hedged transaction match at inception, management expects the hedges to be effective while they are outstanding. The fair value of these interest rate hedges is determined by obtaining valuations from a third-party pricing service. These third-party valuations are based on observable inputs such as time value and yield curve. We validate these observable inputs by preparing an independent calculation using a secondary third-party model. We classify these derivative instruments within Level 2 of the fair value hierarchy. 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 private equity funds which we sponsor. The private equity 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 plans, term deposits with Canadian financial institutions, and securities pledged as collateral with clearing organizations. 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, which is 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. An allowance is established when collectability is not reasonably assured. When the receivable from a brokerage client 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” at their outstanding principal balance on our Consolidated Statements of Financial Condition, net of any allowance for doubtful accounts. Our allowance for doubtful accounts was insignificant at both September 30, 2018 and 2017. 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 any allowance for doubtful accounts. |
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 loan 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 account 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 sell 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” on our Consolidated Statements of Income and Comprehensive Income. 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, which 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 our 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 our 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 our 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 other real estate owned (“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 troubled 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 our Consolidated Statements of Financial Condition. These nonrecurring fair value measurements are classified within Level 2 of the fair value hierarchy. 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; and • 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. These homogeneous classes are a result of management’s disaggregation of the loan portfolio and are comprised of the previously mentioned classes: C&I, CRE, CRE construction, 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. The 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. For all loan classes except for CRE loans, we assign each loan grade an allowance percentage based on the estimated incurred loss associated with that grade. The allowance for loan losses for all non-impaired loans within those loan classes is then calculated based on the allowance percentage assigned to the respective loan’s class and grade factoring in the respective loss emergence period. For the CRE loan class, the allowance for loan losses is calculated based on the allowance percentage assigned to each loan. The allowance for loan losses for all impaired loans and those nonaccrual residential first 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 loan grades and allowance percentages to 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 a 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, loan-to-value (“LTV”) ratios, as well as 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 funding expectations. All classes of impaired loans which have unfunded lending commitments are analyzed in conjunction with the impaired allowance process described above. 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 that 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 meet regularly 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. and Canada. The SNCs are U.S. loan syndications totaling over $100 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 the 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 as of the exam date. Any classification changes as a result of the review may impact our allowance for loan losses and charge-offs during the quarter that the SNC information is received from the OCC; however, these differences in the 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 examinations. Every residential mortgage loan over 60 days past due is reviewed regularly and documented in a written report detailing delinquency information, balances, collection status, current valuation estimate and other data points. RJ Bank senior management meets regularly 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. 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 FHLB and the Federal Reserve Bank (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 our 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. |
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 Low-Income Housing Tax Credit (“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. |
Property and equipment | Property and equipment, net Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation of assets (other than land) is primarily calculated using the straight-line method over the estimated useful lives of the assets outlined in the following table. Asset type Estimated useful life Buildings, buildings & land improvements and building components 10 to 31 years Furniture, fixtures and equipment 3 to 5 years Software 2 to 10 years Leasehold improvements Lesser of useful life or lease term Depreciation expense associated with property, equipment and leasehold improvements is included in “Occupancy and equipment costs” in our Consolidated Statements of Income and Comprehensive Income. Amortization expense associated with computer software is included in “Communications and information processing” expense in our 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 our Consolidated Statements of Income and Comprehensive Income in the period realized. |
Intangible assets, net | Intangible assets, net 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 our Consolidated Statements of Income and Comprehensive Income. We also hold indefinite-lived intangible assets, which are not amortized under GAAP. Rather, these assets are subject to an evaluation of potential impairment on an annual basis to determine whether the estimated fair value is in excess of its carrying value, or more often if events or circumstances indicate there may be impairment. In the course of our evaluation of the potential impairment of such indefinite-lived assets, we may perform either a qualitative or a quantitative assessment. If after assessing the totality of events or circumstances, we determine it is more likely than not that the fair value is greater than its carrying amount, we are not required to perform a quantitative analysis. However, if we conclude otherwise, we then perform a quantitative impairment analysis. We have elected January 1 as our annual impairment evaluation date, evaluating balances as of December 31. |
Goodwill | Goodwill Goodwill represents the cost of acquired businesses in excess of the fair value of the related net assets acquired. Indefinite-life intangible assets such as goodwill are not amortized under GAAP. 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, which is generally at the level of or one level below our business segments, 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 with which the goodwill is associated 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. |
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 our 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 fair value estimated at reporting dates until vesting, with changes in the fair value included in compensation expense. 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 subsection 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. |
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 for further discussion of these assets. For other such plans, including our Long Term Incentive Plan (“LTIP”) and our Wealth Accumulation Plan (“WAP”), we purchase and hold company-owned life insurance policies 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 policies and other investments, as well as the expenses associated with the related deferred compensation plans, are recorded in “Compensation, commissions and benefits” expense on our Consolidated Statements of Income and Comprehensive Income. |
Leases | Leases We lease office space and equipment under operating leases. We recognize rent expense related to these operating leases on a straight-line basis over the lease term. The lease term commences on the earlier of the date when we become legally obligated for the rent payments or the date on which we take possession of the property. For tenant improvement allowances and rent holidays, we record a deferred rent liability in “Other payables” on our Consolidated Statements of Financial Condition and amortize the deferred rent over the lease term as a reduction to rent expense in our 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 our 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 in certain cases, 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 OCI 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 our consolidated financial statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that we expect to be in effect when the underlying items of income and expense are realized. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns, including the repatriation of undistributed earnings of foreign subsidiaries. Variations in the actual outcome of these future tax consequences could materially impact our financial position, results of operations, or liquidity. |
Earnings per share (EPS) | Earnings per share (“EPS”) Basic EPS is calculated by dividing earnings available to common shareholders by the weighted-average number of common shares outstanding. Earnings available to common shareholders’ represents “Net income attributable to Raymond James Financial, Inc.” reduced by the allocation of earnings and dividends to participating securities. Diluted EPS is similar to basic EPS, but adjusts for the dilutive effect of outstanding stock options and restricted stock units by application of the treasury stock method. |
Evaluation of VIEs to determine whether consolidation is required | Evaluation of VIEs to determine whether consolidation is required A VIE requires consolidation by the entity’s primary beneficiary. Examples of entities that may be VIEs include certain legal entities structured as corporations, partnerships or limited liability companies. We evaluate all of the entities in which we are involved to determine if the entity is a VIE and if so, whether we hold a variable interest and are the primary beneficiary. We hold variable interests in the following 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 (“RSU”) 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 RSUs granted as a retention vehicle for certain employees 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 LIHTC 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 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 consolidate 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 - We are 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 funds and, therefore, our affiliate as the managing member of the NMTC funds 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. |
Recent Accounting Developments | Recent accounting developments Accounting guidance recently adopted Income Taxes - In March 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-05, which amended income tax accounting guidance to include guidance issued by the Securities and Exchange Commission (“SEC”) related to the implementation of the Tax Cuts and Jobs Act (the “Tax Act”), which we applied during our first fiscal quarter of 2018 when it was issued by the SEC. See Note 16 for more information. Reclassification of certain tax effects from AOCI - In February 2018, the FASB issued guidance (ASU 2018-02) allowing companies to reclassify to retained earnings the tax effects related to items within AOCI that the FASB refers to as having been stranded as a result of the Tax Act. We early adopted this amended guidance on January 1, 2018 on a modified retrospective approach. The amount reclassified from AOCI to retained earnings related to the Tax Act was insignificant. 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 presented in the same income statement line as the hedged item. • Modifies accounting for components excluded from the assessment of hedge effectiveness. • Eases certain documentation and hedge effectiveness assessment requirements. The new guidance is 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 early-adopted this new guidance on April 1, 2018 and the adoption had no effect on our financial position and results of operations. Fair Value - In August 2018, the FASB issued guidance (ASU No. 2018-13), which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. We early adopted this amended guidance as of September 30, 2018. See Note 4 for more information. Accounting guidance not yet adopted as of September 30, 2018 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, will be effective for us beginning October 1, 2018 and will be adopted using a modified retrospective approach. Adoption will have no effect on our net results of operations or financial position. Beginning with our 2019 fiscal year, we will change the presentation of certain costs from a net presentation within revenues to a gross presentation, particularly related to merger & acquisitions advisory and underwriting transactions and certain administrative costs related to our multi-bank sweep program. The income statement gross up as a result of these changes will depend on activity after adoption but will have no impact on our net earnings. We believe there will be no material changes in timing of revenues recognized associated with the adoption. We will make changes to certain disclosures related to revenues as required by the new guidance. In addition, we have re-evaluated our classifications of revenue by financial statement line item and will be reclassifying certain revenues between income statement line items and renaming certain line items. We believe that these reclassifications will better align with the performance obligations identified under the new guidance and will make our financial statements more comparable with others in our industry. These reclassifications have no impact on the amount of revenue recognized. Financial instruments - In January 2016, the FASB issued new guidance related to the accounting for financial instruments (ASU 2016-01). Among its provisions, including subsequent amendments, 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 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. This new guidance, including subsequent amendments, is effective 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. Upon adoption, our investments in equity securities classified as available-for-sale prior to the adoption date will be accounted for at fair value with unrealized gains/(losses) reflected in earnings. Previously, such unrealized gains/(losses) were reflected in OCI. Upon adoption on October 1, 2018 we do not expect this new guidance to have a material impact 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 with terms greater than twelve months, 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. This new guidance, including subsequent amendments, is first effective for our fiscal year beginning on October 1, 2019. Although permitted, we do not plan to early adopt. Upon adoption, we will use a modified retrospective approach, with a cumulative effect adjustment to opening retained earnings. Our implementation efforts include reviewing existing leases and service contracts, which may include embedded leases. We are in the process of identifying changes to our business processes, systems and controls to support adoption of the new guidance. This new guidance will impact our financial position and results of operations. We are evaluating the magnitude of such impact. 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. This 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, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This amended guidance is first effective for our fiscal year beginning October 1, 2018 and will be adopted under a retrospective approach. Upon adoption on October 1, 2018, this new guidance will impact our Consolidated Statement of Cash Flows and will not have an impact on our financial position and results of operations. Statement of Cash Flows (restricted cash) - In November 2016, the FASB issued new 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. This guidance is first effective for our fiscal year beginning October 1, 2018 and will be adopted under a retrospective approach. Upon adoption on October 1, 2018, this new guidance will impact our Consolidated Statement of Cash Flows but will not have an impact on our financial position and results of operations. 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. This guidance is first effective for our fiscal year beginning October 1, 2018 and will be adopted on a prospective basis. The impact of the adoption of this amended guidance is dependent upon acquisition and disposal activities subsequent to the date of adoption. 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 this 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. This guidance is first effective for our fiscal year beginning October 1, 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 plan to early-adopt this guidance on January 1, 2019, our next goodwill impairment test date. Callable debt securities - In March 2017, the FASB issued new 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 and will be adopted using a modified 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. Share-based payment awards (modifications) - 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. This amended guidance is first effective for our fiscal year beginning October 1, 2018 and will be adopted on a prospective basis. We generally do not modify our share-based payments awards. Upon adoption on October 1, 2018, we do not expect this new guidance to have a material impact on our financial position and results of operations. Share-based payment awards (nonemployee) - In June 2018, the FASB issued amended guidance that aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions (ASU 2018-07). The amended guidance states an entity should measure the fair value of the award by estimating the fair value of the equity instruments to be issued and, for equity-classified awards, the fair value should be measured on the grant date. The amended guidance also clarifies that nonemployee awards that contain a performance condition are to be measured based on the outcome that is probable and that entities may elect, on an award-by-award basis, to use the expected term or the contractual term to measure the award. This amended guidance is first effective for our fiscal year beginning October 1, 2019 and will be adopted using a modified retrospective approach with a cumulative adjustment to retained earnings. We plan to early adopt this new standard on October 1, 2018. We do not expect this new guidance to have a material impact on our financial position and results of operations. Internal use software (cloud computing) - In August 2018, the FASB guidance that issued guidance on the accounting for implementation costs incurred by customers in cloud computing arrangements (ASU 2018-15). This guidance requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the non-cancellable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. This amended guidance is first effective for our fiscal year beginning on October 1, 2020 with early adoption permitted. The guidance may be adopted either using the prospective or retrospective approach. We are currently evaluating the impact of this new guidance on our financial position and results of operations. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition Related Expenses | The following table presents a summary of acquisition-related expenses incurred in each respective period. Year ended September 30, $ in thousands 2018 2017 2016 Legal and regulatory $ 2,281 $ 3,192 $ 8,334 Severance 990 5,859 866 Information systems integration costs 162 1,380 21,752 Acquisition and integration-related incentive compensation costs — 5,474 — Early termination costs of assumed contracts — 1,329 — Post-closing purchase price contingency — (3,345 ) — DBRSU obligation and related hedge — 770 4,837 All other 494 3,336 4,917 Total acquisition-related expenses $ 3,927 $ 17,995 $ 40,706 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | The following tables present 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. Bank loans held for sale measured at fair value on a nonrecurring basis are recorded at a fair value lower than cost. $ 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 $ 1,206 $ 247,712 $ — $ — $ 248,918 Corporate obligations 10,184 99,938 — — 110,122 Government and agency obligations 18,660 71,854 — — 90,514 Agency MBS and CMOs 2,745 124,188 — — 126,933 Non-agency CMOs and asset-backed securities (“ABS”) — 68,712 4 — 68,716 Total debt securities 32,795 612,404 4 — 645,203 Equity securities 15,335 130 — — 15,465 Brokered certificates of deposit — 38,616 — — 38,616 Other 23 2,005 1,078 — 3,106 Total trading instruments 48,153 653,155 1,082 — 702,390 Available-for-sale securities Agency MBS and CMOs — 2,628,739 — — 2,628,739 Other securities 942 — — — 942 ARS preferred — — 66,685 — 66,685 Total available-for-sale securities 942 2,628,739 66,685 — 2,696,366 Derivative assets Interest rate contracts Matched book — 160,345 — — 160,345 Other — 74,068 — (55,330 ) 18,738 Foreign exchange contracts — 1,141 — — 1,141 Total derivative assets — 235,554 — (55,330 ) 180,224 Private equity investments Not measured at NAV — — 55,923 — 55,923 Measured at NAV 91,235 Total private equity investments — — 55,923 — 147,158 Other investments 200,786 618 798 — 202,202 Total assets at fair value on a recurring basis $ 249,881 $ 3,518,066 $ 124,488 $ (55,330 ) $ 3,928,340 Assets at fair value on a nonrecurring basis: Bank loans, net Impaired loans $ — $ 9,661 $ 18,634 $ — $ 28,295 Loans held for sale — 40,015 — — 40,015 Total bank loans, net — 49,676 18,634 — 68,310 Other assets: OREO — 575 — — 575 Total assets at fair value on a nonrecurring basis $ — $ 50,251 $ 18,634 $ — $ 68,885 (continued on next page) (continued from previous 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 $ 30 $ 1,133 $ — $ — $ 1,163 Corporate obligations 1,597 24,776 — — 26,373 Government obligations 194,476 — — — 194,476 Agency MBS and CMOs 71 — — — 71 Non-agency MBS and CMOs — 993 — — 993 Total debt securities 196,174 26,902 — — 223,076 Equity securities 5,525 153 — — 5,678 Other 3 — 6,585 — 6,588 Total trading instruments sold but not yet purchased 201,702 27,055 6,585 — 235,342 Derivative liabilities Interest rate contracts Matched book — 160,345 — — 160,345 Other — 113,392 — (46,853 ) 66,539 Foreign exchange contracts — 4,449 — — 4,449 DBRSU obligation (equity) — 15,580 — — 15,580 Total derivative liabilities — 293,766 — (46,853 ) 246,913 Total liabilities at fair value on a recurring basis $ 201,702 $ 320,821 $ 6,585 $ (46,853 ) $ 482,255 $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of Assets at fair value on a recurring basis: Trading instruments Municipal and provincial obligations $ 83 $ 221,884 $ — $ — $ 221,967 Corporate obligations 9,361 81,577 — — 90,938 Government and agency obligations 6,354 28,977 — — 35,331 Agency MBS and CMOs 913 133,070 — — 133,983 Non-agency CMOs and ABS — 28,442 5 — 28,447 Total debt securities 16,711 493,950 5 — 510,666 Equity securities 16,090 389 — — 16,479 Brokered certificates of deposit — 31,492 — — 31,492 Other 32 — 5,594 — 5,626 Total trading instruments 32,833 525,831 5,599 — 564,263 Available-for-sale securities Agency MBS and CMOs — 2,081,079 — — 2,081,079 Other securities 1,032 — — — 1,032 ARS preferred — — 106,171 — 106,171 Total available-for-sale securities 1,032 2,081,079 106,171 — 2,188,282 Derivative assets Interest rate contracts Matched book — 288,035 — — 288,035 Other — 86,436 — (55,728 ) 30,708 Foreign exchange contracts — 32 — — 32 Total derivative assets — 374,503 — (55,728 ) 318,775 Private equity investments Not measured at NAV — — 88,885 — 88,885 Measured at NAV 109,894 Total private equity investments — — 88,885 — 198,779 Other investments 220,312 332 336 — 220,980 Total assets at fair value on a recurring basis $ 254,177 $ 2,981,745 $ 200,991 $ (55,728 ) $ 3,491,079 Assets at fair value on a nonrecurring basis: Bank loans, net Impaired loans $ — $ 17,474 $ 23,994 $ — $ 41,468 Loans held for sale — 11,285 — — 11,285 Total bank loans, net — 28,759 23,994 — 52,753 Other assets: OREO — 880 — — 880 Total assets at fair value on a nonrecurring basis $ — $ 29,639 $ 23,994 $ — $ 53,633 (continued on next page) $ in thousands Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Netting adjustments Balance as of (continued from previous page) Liabilities at fair value on a recurring basis: Trading instruments sold but not yet purchased Municipal and provincial obligations $ 304 $ — $ — $ — $ 304 Corporate obligations 1,286 35,272 — — 36,558 Government obligations 167,622 — — — 167,622 Agency MBS and CMOs 2,477 — — — 2,477 Non-agency MBS and CMOs — 5,028 — — 5,028 Total debt securities 171,689 40,300 — — 211,989 Equity securities 8,118 1,342 — — 9,460 Total trading instruments sold but not yet purchased 179,807 41,642 — — 221,449 Derivative liabilities Interest rate contracts Matched book — 288,035 — — 288,035 Other — 101,893 — (59,410 ) 42,483 Foreign exchange contracts — 646 — — 646 DBRSU obligation (equity) — 25,800 — — 25,800 Total derivative liabilities — 416,374 — (59,410 ) 356,964 Total liabilities at fair value on a recurring basis $ 179,807 $ 458,016 $ — $ (59,410 ) $ 578,413 |
Level 3 Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis, Roll Forward Table of Change in Balances | The following tables present 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 may include changes in fair value that were attributable to both observable and unobservable inputs. In the tables below, gains/(losses) on trading instruments are reported in “Net trading profit,” gains/(losses) on private equity and other investments are reported in “Other” revenues, and gains/(losses) on available-for-sale securities are reported in either “Other” revenues (when included in earnings) or “Other comprehensive income” in our Consolidated Statements of Income and Comprehensive Income. Year ended September 30, 2018 Level 3 instruments at fair value Financial assets Financial liabilities Trading instruments Available-for-sale securities Private equity and other investments Trading instruments $ in thousands Non-agency CMOs and ABS Other ARS - Private equity investments Other investments Other Fair value beginning of year $ 5 $ 5,594 $ 106,171 $ 88,885 $ 336 $ — Total gains/(losses) for the year: Included in earnings — (2,607 ) 4,684 (4,847 ) (91 ) (1,521 ) Included in other comprehensive income — — 1,279 — — — Purchases and contributions — 82,060 — — 762 2,199 Sales — (83,969 ) (45,449 ) (28,115 ) (209 ) (7,263 ) Distributions (1 ) — — — — — Transfers: Into Level 3 — — — — — — Out of Level 3 — — — — — — Fair value end of year $ 4 $ 1,078 $ 66,685 $ 55,923 $ 798 $ (6,585 ) Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year $ — $ (315 ) $ — $ (16,068 ) $ (300 ) $ (1,521 ) Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year $ — $ — $ 3,132 $ — $ — $ — Year ended September 30, 2017 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 Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year $ 1 $ (1,626 ) $ — $ — $ 8,331 $ 118 Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year $ — $ — $ — $ 7,705 $ — $ — |
Significant Assumptions Used in Valuation of Level 3 Financial Instruments | The following tables present 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. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument. Level 3 financial instrument $ in thousands Fair value at September 30, 2018 Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements ARS preferred $ 66,685 Discounted cash flow Average discount rate 6.50% - 7.85% (7.13%) Average interest rates applicable to future interest income on the securities (1) 4.13% - 5.51% (4.47%) Prepayment year (2) 2018 - 2021 (2021) Private equity investments (not measured at NAV) $ 43,012 Income approach - Discounted cash flow Discount rate 25 % Terminal EBITDA Multiple 10.0x Terminal year 2022 - 2042 (2023) $ 12,911 Transaction price or other investment-specific events (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements Bank loans: impaired loans - residential $ 17,076 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.5 yrs.) Bank loans: impaired loans - corporate $ 1,558 Collateral or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) The text of the footnotes in the preceding table are on the following page. Level 3 financial instrument $ in thousands Fair value at September 30, 2017 Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements ARS preferred $ 106,171 Discounted cash flow Average discount rate 5.46% - 6.81% (6.03%) Average interest rates applicable to future interest income on the securities (1) 2.58% - 3.44% (2.72%) Prepayment year (2) 2017 - 2021 (2021) Private equity investments (not measured at NAV) $ 68,454 Income or market approach Scenario 1 - income approach - discounted cash flow Discount rate 13% - 25% (22.4%) Terminal growth rate of cash flows 3% - 3% (3%) Terminal year 2020 - 2042 (2021) Scenario 2 - market approach - market multiple method EBITDA Multiple 5.25x - 7x (5.8x) Weighting assigned to outcome of scenario 1/scenario 2 87%/13% $ 20,431 Transaction price or other investment-specific events (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements Bank loans: impaired loans -residential $ 20,736 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Bank loans: impaired loans -corporate $ 3,258 Appraisal or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) (1) Interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (2) Assumed calendar year of at least a partial redemption of the outstanding security by the issuer. (3) Certain investments are valued initially at transaction price and updated as other investment-specific events take place which indicate that a change in the carrying values of these investments is appropriate. Other investment-specific events include such events as our periodic review, significant transactions occur, new developments become known, or we receive information from a fund manager which allows us to update our proportionate share of net assets. (4) The valuation techniques used for the impaired corporate loan portfolio are appraisals or collateral value less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. 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, 2017 ($ in thousands) Discount rate used in the income approach Multiple applied to revenue/EPS in the market approach Income approach Market approach Private Client Group RJ Ltd. Private Client Group $ 24,285 14.3 % 1.2x/13.8x 75 % 25 % Capital Markets RJ Ltd. Capital Markets $ 20,293 15.3 % 0.9x/14.2x 75 % 25 % |
Net Asset Value of Unfunded Commitments | The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ in thousands Recorded value Unfunded commitment September 30, 2018 Private equity investments measured at NAV $ 91,235 $ 18,418 Private equity investments not measured at NAV 55,923 Total private equity investments $ 147,158 September 30, 2017 Private equity investments measured at NAV $ 109,894 $ 20,973 Private equity investments not measured at NAV 88,885 Total private equity investments $ 198,779 |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | The following table 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 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, 2018 Financial assets: Bank loans, net $ — $ 123,911 $ 19,116,423 $ 19,240,334 $ 19,449,790 Loans to financial advisors, net $ — $ — $ 748,437 $ 748,437 $ 934,420 Financial liabilities: Bank deposits $ — $ 19,496,066 $ 438,513 $ 19,934,579 $ 19,941,507 Other borrowings $ — $ 23,900 $ — $ 23,900 $ 23,966 Senior notes payable $ — $ 1,557,728 $ — $ 1,557,728 $ 1,549,636 September 30, 2017 Financial assets: Bank loans, net $ — $ 23,001 $ 16,836,745 $ 16,859,746 $ 16,954,042 Loans to financial advisors, net $ — $ — $ 708,487 $ 708,487 $ 873,272 Financial liabilities: Bank deposits $ — $ 17,417,678 $ 313,359 $ 17,731,037 $ 17,732,362 Other borrowings $ — $ 29,278 $ — $ 29,278 $ 28,813 Senior notes payable $ — $ 1,647,696 $ — $ 1,647,696 $ 1,548,839 |
AVAILABLE FOR SALE SECURITIES (
AVAILABLE FOR SALE SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Estimated Fair Values of Available For Sale Securities | The following table details the amortized cost and fair values of our available-for-sale securities. $ in thousands Cost basis Gross unrealized gains Gross unrealized losses Fair value September 30, 2018 Agency MBS and CMOs $ 2,698,168 $ 394 $ (69,823 ) $ 2,628,739 Other securities 1,575 — (633 ) 942 Total RJ Bank available-for-sale securities 2,699,743 394 (70,456 ) 2,629,681 ARS preferred 60,909 5,776 — 66,685 Total available-for-sale securities $ 2,760,652 $ 6,170 $ (70,456 ) $ 2,696,366 September 30, 2017 Agency MBS and CMOs $ 2,089,153 $ 1,925 $ (9,999 ) $ 2,081,079 Other securities 1,575 — (543 ) 1,032 Total RJ Bank available-for-sale securities 2,090,728 1,925 (10,542 ) 2,082,111 ARS preferred 101,674 4,497 — 106,171 Total available-for-sale securities $ 2,192,402 $ 6,422 $ (10,542 ) $ 2,188,282 |
Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available For Sales Securities | The following table details the contractual maturities, amortized cost, carrying values and current yields for our available-for-sale securities with contractual maturities. Since RJ Bank ’s MBS and CMO available-for-sale securities are backed by mortgages, actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. September 30, 2018 $ in thousands Within one year After one but within five years After five but within ten years After ten years Total Agency MBS and CMOs: Amortized cost $ 2,656 $ 245,214 $ 898,553 $ 1,551,745 $ 2,698,168 Carrying value 2,641 239,247 876,432 1,510,419 2,628,739 Weighted-average yield 1.70 % 2.25 % 2.24 % 2.32 % 2.29 % |
Available For Sale Securities in a Continuous Unrealized Loss Position | The following table details the gross unrealized losses and fair value of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position. Less than 12 months 12 months or more Total $ in thousands Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses September 30, 2018 Agency MBS and CMOs $ 1,102,652 $ (19,906 ) $ 1,425,650 $ (49,917 ) $ 2,528,302 $ (69,823 ) Other securities — — 942 (633 ) 942 (633 ) Total $ 1,102,652 $ (19,906 ) $ 1,426,592 $ (50,550 ) $ 2,529,244 $ (70,456 ) September 30, 2017 Agency MBS and CMOs $ 1,119,715 $ (5,621 ) $ 295,528 $ (4,378 ) $ 1,415,243 $ (9,999 ) Other securities — — 1,032 (543 ) 1,032 (543 ) Total $ 1,119,715 $ (5,621 ) $ 296,560 $ (4,921 ) $ 1,416,275 $ (10,542 ) |
Credit Losses Recognized in Earnings on Available For Sale Securities | The following table details the changes in the amount of OTTI related to credit losses recognized in “Other” revenues on available-for-sale securities. Year ended September 30, $ in thousands 2018 2017 2016 Amount related to credit losses on securities we held at the beginning of the year $ — $ 8,107 $ 11,847 Decreases to the amount related to credit losses for securities sold during the year — (8,107 ) (3,740 ) Amount related to credit losses on securities we held at the end of the year $ — $ — $ 8,107 |
DERIVATIVE ASSETS AND DERIVAT_2
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table details the gains/(losses) recognized in AOCI, net of income taxes, on derivatives designated as hedging instruments. See Note 18 for additional information. Year ended September 30, $ in thousands 2018 2017 2016 Interest rate contracts (cash flow hedges) $ 34,806 $ 23,232 $ (11,833 ) Foreign exchange contracts (net investment hedges) 27,771 (26,281 ) (6,721 ) Total gains/(losses) recognized in AOCI, net of taxes $ 62,577 $ (3,049 ) $ (18,554 ) |
Schedule of Derivative Assets at Fair Value | The following table 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 collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. September 30, 2018 September 30, 2017 $ in thousands Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate contracts: Matched book $ 160,345 $ 160,345 $ 2,415,615 $ 288,035 $ 288,035 $ 2,766,488 Other (1) 74,068 112,864 6,155,611 86,436 100,503 4,931,809 Foreign exchange contracts 1,141 1,454 549,188 3 530 437,783 DBRSU obligation (equity) (2) — 15,580 15,580 — 25,800 25,800 Subtotal 235,554 290,243 9,135,994 374,474 414,868 8,161,880 Derivatives designated as hedging instruments Interest rate contracts — 528 850,000 — 1,390 850,000 Foreign exchange contracts — 2,995 891,563 29 116 1,048,646 Subtotal — 3,523 1,741,563 29 1,506 1,898,646 Total gross fair value/notional amount 235,554 293,766 $ 10,877,557 374,503 416,374 $ 10,060,526 Offset in the Statements of Financial Condition Counterparty netting (26,124 ) (26,124 ) (6,045 ) (6,045 ) Cash collateral netting (29,206 ) (20,729 ) (49,683 ) (53,365 ) Total amounts offset (55,330 ) (46,853 ) (55,728 ) (59,410 ) Net amounts presented in the Statements of Financial Condition 180,224 246,913 318,775 356,964 Gross amounts not offset in the Statements of Financial Condition Financial instruments (3) (162,480 ) (160,345 ) (293,340 ) (288,035 ) Total $ 17,744 $ 86,568 $ 25,435 $ 68,929 The text of the footnotes in the preceding table are on the following page. The text of the footnotes to the preceding table are as follows: (1) Substantially all relates to interest rate derivatives entered into as part of our fixed income business operations. (2) The DBRSU obligation is not subject to an enforceable master netting arrangement or other similar arrangement. However, we held shares of DB as an economic hedge against this obligation with a fair value of $12 million and $19 million as of September 30, 2018 and 2017 , respectively, which are a component of “Other investments” on our Consolidated Statements of Financial Condition. See additional discussion of the DBRSUs in Note 20 . (3) Although the matched book derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary includes terms that are similar to a master netting agreement. As a result, we present the matched book amounts net in the preceding table. |
Schedule of Derivative Liabilities at Fair Value | The following table 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 collateral posted and received under credit support agreements that do not meet the criteria for netting under GAAP. September 30, 2018 September 30, 2017 $ in thousands Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate contracts: Matched book $ 160,345 $ 160,345 $ 2,415,615 $ 288,035 $ 288,035 $ 2,766,488 Other (1) 74,068 112,864 6,155,611 86,436 100,503 4,931,809 Foreign exchange contracts 1,141 1,454 549,188 3 530 437,783 DBRSU obligation (equity) (2) — 15,580 15,580 — 25,800 25,800 Subtotal 235,554 290,243 9,135,994 374,474 414,868 8,161,880 Derivatives designated as hedging instruments Interest rate contracts — 528 850,000 — 1,390 850,000 Foreign exchange contracts — 2,995 891,563 29 116 1,048,646 Subtotal — 3,523 1,741,563 29 1,506 1,898,646 Total gross fair value/notional amount 235,554 293,766 $ 10,877,557 374,503 416,374 $ 10,060,526 Offset in the Statements of Financial Condition Counterparty netting (26,124 ) (26,124 ) (6,045 ) (6,045 ) Cash collateral netting (29,206 ) (20,729 ) (49,683 ) (53,365 ) Total amounts offset (55,330 ) (46,853 ) (55,728 ) (59,410 ) Net amounts presented in the Statements of Financial Condition 180,224 246,913 318,775 356,964 Gross amounts not offset in the Statements of Financial Condition Financial instruments (3) (162,480 ) (160,345 ) (293,340 ) (288,035 ) Total $ 17,744 $ 86,568 $ 25,435 $ 68,929 The text of the footnotes in the preceding table are on the following page. The text of the footnotes to the preceding table are as follows: (1) Substantially all relates to interest rate derivatives entered into as part of our fixed income business operations. (2) The DBRSU obligation is not subject to an enforceable master netting arrangement or other similar arrangement. However, we held shares of DB as an economic hedge against this obligation with a fair value of $12 million and $19 million as of September 30, 2018 and 2017 , respectively, which are a component of “Other investments” on our Consolidated Statements of Financial Condition. See additional discussion of the DBRSUs in Note 20 . (3) Although the matched book derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the agreement with the third-party intermediary includes terms that are similar to a master netting agreement. As a result, we present the matched book amounts net in the preceding table. |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table details the gains/(losses) recognized in AOCI, net of income taxes, on derivatives designated as hedging instruments. See Note 18 for additional information. Year ended September 30, $ in thousands 2018 2017 2016 Interest rate contracts (cash flow hedges) $ 34,806 $ 23,232 $ (11,833 ) Foreign exchange contracts (net investment hedges) 27,771 (26,281 ) (6,721 ) Total gains/(losses) recognized in AOCI, net of taxes $ 62,577 $ (3,049 ) $ (18,554 ) |
Amount of Gain (Loss) on Derivatives Recognized in Income | The following table details the gains/(losses) on derivatives not designated as hedging instruments recognized on the Consolidated Statements of Income and Comprehensive Income. Location of gain/(loss) included in the Consolidated Statements of Income and Comprehensive Income Gain/(loss) recognized during the year ended September 30, $ in thousands 2018 2017 2016 Interest rate contracts: Matched book Other revenues $ 104 $ 36 $ 92 Other Net trading profit/other revenues $ 6,018 $ 7,895 $ 2,819 Foreign exchange contracts Other revenues $ 18,091 $ (19,961 ) $ (2,662 ) DBRSU obligation (equity) Compensation, commissions and benefits expense $ 8,192 $ (5,648 ) $ 2,457 DBRSU obligation (equity) Acquisition-related expenses $ — $ (2,383 ) $ — |
COLLATERALIZED AGREEMENTS AND_2
COLLATERALIZED AGREEMENTS AND FINANCINGS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 Gross amounts of recognized assets/liabilities $ 372,603 $ 255,280 $ 186,205 $ 422,785 Gross amounts offset in the Consolidated Statements of Financial Condition — — — — Net amounts presented in the Consolidated Statements of Financial Condition 372,603 255,280 186,205 422,785 Gross amounts not offset in the Consolidated Statements of Financial Condition (372,603 ) (247,860 ) (186,205 ) (407,975 ) Net amount $ — $ 7,420 $ — $ 14,810 September 30, 2017 Gross amounts of recognized assets/liabilities $ 404,462 $ 138,319 $ 220,942 $ 383,953 Gross amounts offset in the Consolidated Statements of Financial Condition — — — — Net amounts presented in the Consolidated Statements of Financial Condition 404,462 138,319 220,942 383,953 Gross amounts not offset in the Consolidated Statements of Financial Condition (404,462 ) (134,304 ) (220,942 ) (373,132 ) Net amount $ — $ 4,015 $ — $ 10,821 |
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, 2018 Gross amounts of recognized assets/liabilities $ 372,603 $ 255,280 $ 186,205 $ 422,785 Gross amounts offset in the Consolidated Statements of Financial Condition — — — — Net amounts presented in the Consolidated Statements of Financial Condition 372,603 255,280 186,205 422,785 Gross amounts not offset in the Consolidated Statements of Financial Condition (372,603 ) (247,860 ) (186,205 ) (407,975 ) Net amount $ — $ 7,420 $ — $ 14,810 September 30, 2017 Gross amounts of recognized assets/liabilities $ 404,462 $ 138,319 $ 220,942 $ 383,953 Gross amounts offset in the Consolidated Statements of Financial Condition — — — — Net amounts presented in the Consolidated Statements of Financial Condition 404,462 138,319 220,942 383,953 Gross amounts not offset in the Consolidated Statements of Financial Condition (404,462 ) (134,304 ) (220,942 ) (373,132 ) Net amount $ — $ 4,015 $ — $ 10,821 |
Collateral | The following table presents financial instruments at fair value that we received as collateral, were 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 previously described. September 30, $ in thousands 2018 2017 Collateral we received that was available to be delivered or repledged $ 3,165,127 $ 3,030,736 Collateral that we delivered or repledged $ 1,388,882 $ 1,068,912 |
Encumbered assets | The following table presents information about the fair value of our assets that have been pledged for one of the purposes previously described. September 30, $ in thousands 2018 2017 Financial instruments owned, at fair value, pledged to counterparties that: Had the right to deliver or repledge $ 509,703 $ 363,739 Did not have the right to deliver or repledge $ 64,614 $ 44,930 Bank loans, net pledged at FHLB and the Federal Reserve $ 4,075,081 $ 3,197,185 |
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 September 30, 2018 Repurchase agreements: Government and agency obligations $ 102,140 $ — $ — $ — $ 102,140 Agency MBS and CMOs 84,065 — — — 84,065 Total repurchase agreements 186,205 — — — 186,205 Securities loaned: Equity securities 422,785 — — — 422,785 Total $ 608,990 $ — $ — $ — $ 608,990 September 30, 2017 Repurchase agreements: Government and agency obligations $ 107,284 $ — $ — $ — $ 107,284 Agency MBS and CMOs 113,658 — — — 113,658 Total repurchase agreements 220,942 — — — 220,942 Securities loaned: Equity securities 383,953 — — — 383,953 Total $ 604,895 $ — $ — $ — $ 604,895 |
BANK LOANS, NET (Tables)
BANK LOANS, NET (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 following table are presented net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs. September 30, 2018 2017 2016 $ in thousands Balance % Balance % Balance % Loans held for investment: C&I loans $ 7,785,237 40 % $ 7,385,910 43 % $ 7,470,373 48 % CRE construction loans 150,825 1 % 112,681 1 % 122,718 1 % CRE loans 3,624,407 18 % 3,106,290 18 % 2,554,071 17 % Tax-exempt loans 1,227,112 6 % 1,017,791 6 % 740,944 5 % Residential mortgage loans 3,756,609 19 % 3,148,730 18 % 2,441,569 16 % SBL 3,033,390 15 % 2,386,697 14 % 1,904,827 12 % Total loans held for investment 19,577,580 17,158,099 15,234,502 Net unearned income and deferred expenses (20,656 ) (31,178 ) (40,675 ) Total loans held for investment, net 19,556,924 17,126,921 15,193,827 Loans held for sale, net 163,926 1 % 70,316 — 214,286 1 % Total loans held for sale and investment 19,720,850 100 % 17,197,237 100 % 15,408,113 100 % Allowance for loan losses (202,750 ) (190,442 ) (197,378 ) Bank loans, net $ 19,518,100 $ 17,006,795 $ 15,210,735 September 30, 2015 2014 $ in thousands Balance % Balance % Loans held for investment: C&I loans $ 6,928,018 52 % $ 6,422,347 58 % CRE construction loans 162,356 1 % 94,195 1 % CRE loans 2,054,154 16 % 1,689,163 15 % Tax-exempt loans 484,537 4 % 122,218 1 % Residential mortgage loans 1,962,614 15 % 1,751,747 16 % SBL 1,481,504 11 % 1,023,748 9 % Total loans held for investment 13,073,183 11,103,418 Net unearned income and deferred expenses (32,424 ) (37,533 ) Total loans held for investment, net 13,040,759 11,065,885 Loans held for sale, net 119,519 1 % 45,988 — Total loans held for sale and investment 13,160,278 100 % 11,111,873 100 % Allowance for loan losses (172,257 ) (147,574 ) Bank loans, net $ 12,988,021 $ 10,964,299 |
Loan Purchases and Sales | The following table presents purchases and sales of any loans held for investment by portfolio segment. $ in thousands C&I loans CRE loans Residential mortgage loans Total Year ended September 30, 2018 Purchases $ 467,534 $ 144,818 $ 303,030 $ 915,382 Sales $ 212,752 $ — $ — $ 212,752 Year ended September 30, 2017 Purchases $ 536,627 $ 63,542 $ 264,340 $ 864,509 Sales $ 341,196 $ — $ — $ 341,196 Year ended September 30, 2016 Purchases $ 457,503 $ 24,869 $ 371,710 $ 854,082 Sales $ 172,968 $ — $ — $ 172,968 |
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. Amounts in the table exclude any net unearned income and deferred expenses. $ in thousands 30-89 days and accruing 90 days or more and accruing Total past due and accruing Nonaccrual Current and accruing Total loans held for investment September 30, 2018 C&I loans $ — $ — $ — $ 1,558 $ 7,783,679 $ 7,785,237 CRE construction loans — — — — 150,825 150,825 CRE loans — — — — 3,624,407 3,624,407 Tax-exempt loans — — — — 1,227,112 1,227,112 Residential mortgage loans: First mortgage loans 1,289 — 1,289 22,848 3,706,769 3,730,906 Home equity loans/lines 23 — 23 122 25,558 25,703 SBL — — — — 3,033,390 3,033,390 Total loans held for investment, net $ 1,312 $ — $ 1,312 $ 24,528 $ 19,551,740 $ 19,577,580 September 30, 2017 C&I loans $ — $ — $ — $ 5,221 $ 7,380,689 $ 7,385,910 CRE construction loans — — — — 112,681 112,681 CRE loans — — — — 3,106,290 3,106,290 Tax-exempt loans — — — — 1,017,791 1,017,791 Residential mortgage loans: First mortgage loans 1,853 — 1,853 33,718 3,086,701 3,122,272 Home equity loans/lines 248 — 248 31 26,179 26,458 SBL — — — — 2,386,697 2,386,697 Total loans held for investment, net $ 2,101 $ — $ 2,101 $ 38,970 $ 17,117,028 $ 17,158,099 |
Summary of Impaired Loans | The following table provides a summary of RJ Bank ’s impaired loans. September 30, 2018 2017 $ in thousands Gross recorded investment Unpaid principal balance Allowance for losses Gross recorded investment Unpaid principal balance Allowance for losses Impaired loans with allowance for loan losses: C&I loans $ — $ — $ — $ 5,221 $ 6,160 $ 1,963 Residential - first mortgage loans 15,229 19,728 1,592 23,977 31,100 2,504 Total 15,229 19,728 1,592 29,198 37,260 4,467 Impaired loans without allowance for loan losses: C&I loans 1,558 1,700 — — — — Residential - first mortgage loans 13,100 20,005 — 16,737 24,899 — Total 14,658 21,705 — 16,737 24,899 — Total impaired loans $ 29,887 $ 41,433 $ 1,592 $ 45,935 $ 62,159 $ 4,467 |
Average Balance of Impaired Loans Recognized | The average balances of total impaired loans were as follows. Year ended September 30, $ in thousands 2018 2017 2016 Average impaired loan balance: C&I loans $ 4,048 $ 17,540 $ 18,112 CRE loans — 694 4,474 Residential - first mortgage loans 32,778 43,845 51,554 Total $ 36,826 $ 62,079 $ 74,140 |
Credit Quality of Held for Investment Loan Portfolio | The following table presents the credit quality of RJ Bank ’s held for investment loan portfolio. $ in thousands Pass Special mention Substandard Doubtful Total September 30, 2018 C&I loans $ 7,678,521 $ 47,933 $ 58,783 $ — $ 7,785,237 CRE construction loans 139,696 11,129 — — 150,825 CRE loans 3,547,382 44,151 32,874 — 3,624,407 Tax-exempt loans 1,227,112 — — — 1,227,112 Residential mortgage loans: First mortgage loans 3,692,524 8,046 30,336 — 3,730,906 Home equity loans/lines 25,578 3 122 — 25,703 SBL 3,033,390 — — — 3,033,390 Total $ 19,344,203 $ 111,262 $ 122,115 $ — $ 19,577,580 September 30, 2017 C&I loans $ 7,232,777 $ 63,964 $ 89,169 $ — $ 7,385,910 CRE construction loans 112,681 — — — 112,681 CRE loans 3,048,847 57,315 128 — 3,106,290 Tax-exempt loans 1,017,791 — — — 1,017,791 Residential mortgage loans: First mortgage loans 3,068,290 8,467 45,515 — 3,122,272 Home equity loans/lines 26,352 75 31 — 26,458 SBL 2,386,697 — — — 2,386,697 Total $ 16,893,435 $ 129,821 $ 134,843 $ — $ 17,158,099 |
Changes in the Allowance for Loan Losses | The following table presents changes in the allowance for loan losses of RJ Bank by portfolio segment. Loans held for investment $ in thousands C&I loans CRE construction loans CRE loans Tax-exempt loans Residential mortgage loans SBL Total Year ended September 30, 2018 Balance at beginning of year $ 119,901 $ 1,421 $ 41,749 $ 6,381 $ 16,691 $ 4,299 $ 190,442 Provision/(benefit) for loan losses 13,426 1,747 5,240 2,163 (1,742 ) (353 ) 20,481 Net (charge-offs)/recoveries: Charge-offs (9,587 ) — (32 ) — (383 ) — (10,002 ) Recoveries 4 — — — 2,320 — 2,324 Net (charge-offs)/recoveries (9,583 ) — (32 ) — 1,937 — (7,678 ) Foreign exchange translation adjustment (349 ) — (146 ) — — — (495 ) Balance at end of year $ 123,395 $ 3,168 $ 46,811 $ 8,544 $ 16,886 $ 3,946 $ 202,750 Year ended September 30, 2017 Balance at beginning of year $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 Provision/(benefit) for loan losses 7,502 (101 ) (172 ) 2,281 3,944 (467 ) 12,987 Net (charge-offs)/recoveries: Charge-offs (26,088 ) — — — (918 ) — (27,006 ) Recoveries 340 — 5,013 — 1,001 — 6,354 Net (charge-offs)/recoveries (25,748 ) — 5,013 — 83 — (20,652 ) Foreign exchange translation adjustment 446 (92 ) 375 — — — 729 Balance at end of year $ 119,901 $ 1,421 $ 41,749 $ 6,381 $ 16,691 $ 4,299 $ 190,442 Year ended September 30, 2016 Balance at beginning of year $ 117,623 $ 2,707 $ 30,486 $ 5,949 $ 12,526 $ 2,966 $ 172,257 Provision/(benefit) for loan losses 23,051 (1,023 ) 5,997 (1,849 ) 191 1,800 28,167 Net (charge-offs)/recoveries: Charge-offs (2,956 ) — — — (1,470 ) — (4,426 ) Recoveries — — — — 1,417 — 1,417 Net (charge-offs)/recoveries (2,956 ) — — — (53 ) — (3,009 ) Foreign exchange translation adjustment (17 ) (70 ) 50 — — — (37 ) Balance at end of year $ 137,701 $ 1,614 $ 36,533 $ 4,100 $ 12,664 $ 4,766 $ 197,378 |
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, 2018 C&I loans $ — $ 123,395 $ 123,395 $ 1,558 $ 7,783,679 $ 7,785,237 CRE construction loans — 3,168 3,168 — 150,825 150,825 CRE loans — 46,811 46,811 — 3,624,407 3,624,407 Tax-exempt loans — 8,544 8,544 — 1,227,112 1,227,112 Residential mortgage loans 1,601 15,285 16,886 34,595 3,722,014 3,756,609 SBL — 3,946 3,946 — 3,033,390 3,033,390 Total $ 1,601 $ 201,149 $ 202,750 $ 36,153 $ 19,541,427 $ 19,577,580 September 30, 2017 C&I loans $ 1,963 $ 117,938 $ 119,901 $ 5,221 $ 7,380,689 $ 7,385,910 CRE construction loans — 1,421 1,421 — 112,681 112,681 CRE loans — 41,749 41,749 — 3,106,290 3,106,290 Tax-exempt loans — 6,381 6,381 — 1,017,791 1,017,791 Residential mortgage loans 2,506 14,185 16,691 47,368 3,101,362 3,148,730 SBL — 4,299 4,299 — 2,386,697 2,386,697 Total $ 4,469 $ 185,973 $ 190,442 $ 52,589 $ 17,105,510 $ 17,158,099 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Assets | The following table details the components of other assets. September 30, $ in thousands 2018 2017 Investments in company-owned life insurance policies $ 605,289 $ 504,108 Prepaid expenses 98,914 96,059 Investment in FHLB stock 52,187 52,187 Investment in FRB stock 24,706 24,706 Prepaid compensation arising from acquisitions 16,454 27,175 Guaranteed LIHTC Fund financing asset 9,792 15,786 Indemnification asset 4,095 26,160 All other 32,879 34,244 Total other assets $ 844,316 $ 780,425 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 following table. 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, 2018 Private Equity Interests $ 67,179 $ 5,084 LIHTC fund in which RJ Bank is an investor member 53,149 257 Guaranteed LIHTC Fund 40,411 3,110 Other LIHTC funds 17,493 18,171 Restricted Stock Trust Fund 13,538 13,538 Total $ 191,770 $ 40,160 September 30, 2017 Private Equity Interests $ 104,414 $ 3,851 LIHTC fund in which RJ Bank is an investor member 57,719 1,055 Guaranteed LIHTC Fund 51,400 2,872 Other LIHTC funds 7,418 2,544 Restricted Stock Trust Fund 12,122 12,122 Total $ 233,073 $ 22,444 |
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 2018 2017 Assets: Cash and cash equivalents $ 3,830 $ 2,052 Cash segregated pursuant to regulations 3,020 4,590 Other receivables 1,215 168 Intercompany receivables 442 454 Private equity investments 62,275 101,905 Investments in real estate partnerships held by consolidated variable interest entities 107,405 111,743 Trust fund investment in RJF common stock 13,536 12,120 Other assets 47 41 Total assets $ 191,770 $ 233,073 Liabilities and equity: Other payables $ 26,628 $ 9,667 Intercompany payables 17,271 16,520 Total liabilities 43,899 26,187 RJF equity 70,066 101,445 Noncontrolling interests 77,805 105,441 Total equity 147,871 206,886 Total liabilities and equity $ 191,770 $ 233,073 |
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 following table. September 30, 2018 2017 $ in thousands Aggregate assets Aggregate liabilities Our risk of loss Aggregate assets Aggregate liabilities Our risk of loss Private Equity Interests $ 6,907,827 $ 154,301 $ 68,053 $ 10,485,611 $ 174,354 $ 73,457 LIHTC funds 5,692,112 1,912,110 93,270 5,372,367 2,134,600 60,959 NMTC funds 13,878 141 7 30,297 105 9 Other 196,939 113,344 4,044 169,462 88,615 3,163 Total $ 12,810,756 $ 2,179,896 $ 165,374 $ 16,057,737 $ 2,397,674 $ 137,588 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The following table presents our property and equipment, net balances as of the dates presented. September 30, $ in thousands 2018 2017 Land $ 29,079 $ 29,079 Software, including development in progress 417,390 345,734 Buildings, leasehold and land improvements 350,144 324,452 Furniture, fixtures and equipment 247,548 224,418 Construction in process 16,461 12,056 Total property and equipment 1,060,622 935,739 Less: Accumulated depreciation and amortization (574,348 ) (498,365 ) Total property and equipment, net $ 486,274 $ 437,374 |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Net Identifiable Intangible Asset Balances | The following table presents our goodwill and net identifiable intangible asset balances as of the dates indicated. September 30, $ in thousands 2018 2017 Goodwill $ 478,251 $ 410,723 Identifiable intangible assets, net 160,846 82,460 Total goodwill and identifiable intangible assets, net $ 639,097 $ 493,183 |
Schedule of Goodwill Balance and Activity | The following summarizes our goodwill by segment, and the balances and activity for the years indicated. $ in thousands Private Client Group Capital Markets Asset Management Total Year ended September 30, 2018 Goodwill as of beginning of year $ 276,713 $ 134,010 $ — $ 410,723 Additions — — 69,234 69,234 Foreign currency translations (837 ) (869 ) — (1,706 ) Goodwill as of end of year $ 275,876 $ 133,141 $ 69,234 $ 478,251 Year ended September 30, 2017 Goodwill as of beginning of year $ 275,521 $ 132,551 $ — $ 408,072 Foreign currency translations 1,192 1,459 — 2,651 Goodwill as of end of year $ 276,713 $ 134,010 $ — $ 410,723 |
Schedule of Quantitative Analysis of Goodwill | The following tables present 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. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument. Level 3 financial instrument $ in thousands Fair value at September 30, 2018 Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements ARS preferred $ 66,685 Discounted cash flow Average discount rate 6.50% - 7.85% (7.13%) Average interest rates applicable to future interest income on the securities (1) 4.13% - 5.51% (4.47%) Prepayment year (2) 2018 - 2021 (2021) Private equity investments (not measured at NAV) $ 43,012 Income approach - Discounted cash flow Discount rate 25 % Terminal EBITDA Multiple 10.0x Terminal year 2022 - 2042 (2023) $ 12,911 Transaction price or other investment-specific events (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements Bank loans: impaired loans - residential $ 17,076 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.5 yrs.) Bank loans: impaired loans - corporate $ 1,558 Collateral or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) The text of the footnotes in the preceding table are on the following page. Level 3 financial instrument $ in thousands Fair value at September 30, 2017 Valuation technique(s) Unobservable input Range (weighted-average) Recurring measurements ARS preferred $ 106,171 Discounted cash flow Average discount rate 5.46% - 6.81% (6.03%) Average interest rates applicable to future interest income on the securities (1) 2.58% - 3.44% (2.72%) Prepayment year (2) 2017 - 2021 (2021) Private equity investments (not measured at NAV) $ 68,454 Income or market approach Scenario 1 - income approach - discounted cash flow Discount rate 13% - 25% (22.4%) Terminal growth rate of cash flows 3% - 3% (3%) Terminal year 2020 - 2042 (2021) Scenario 2 - market approach - market multiple method EBITDA Multiple 5.25x - 7x (5.8x) Weighting assigned to outcome of scenario 1/scenario 2 87%/13% $ 20,431 Transaction price or other investment-specific events (3) Not meaningful (3) Not meaningful (3) Nonrecurring measurements Bank loans: impaired loans -residential $ 20,736 Discounted cash flow Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Bank loans: impaired loans -corporate $ 3,258 Appraisal or discounted cash flow value (4) Not meaningful (4) Not meaningful (4) (1) Interest rates are projected based upon a forward interest rate path, plus a spread over such projected base rate that is applicable to each future period for each security within this portfolio segment. The interest rates presented represent the average interest rate over all projected periods for securities within the portfolio segment. (2) Assumed calendar year of at least a partial redemption of the outstanding security by the issuer. (3) Certain investments are valued initially at transaction price and updated as other investment-specific events take place which indicate that a change in the carrying values of these investments is appropriate. Other investment-specific events include such events as our periodic review, significant transactions occur, new developments become known, or we receive information from a fund manager which allows us to update our proportionate share of net assets. (4) The valuation techniques used for the impaired corporate loan portfolio are appraisals or collateral value less selling costs for the collateral dependent loans and discounted cash flows for impaired loans that are not collateral dependent. 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, 2017 ($ in thousands) Discount rate used in the income approach Multiple applied to revenue/EPS in the market approach Income approach Market approach Private Client Group RJ Ltd. Private Client Group $ 24,285 14.3 % 1.2x/13.8x 75 % 25 % Capital Markets RJ Ltd. Capital Markets $ 20,293 15.3 % 0.9x/14.2x 75 % 25 % |
Schedule of Finite-Lived Intangible Assets | The following table sets forth our identifiable intangible asset balances by segment, net of accumulated amortization, and activity for the years indicated. $ in thousands Private Client Group Capital Markets Asset Management Total Year ended September 30, 2018 Net identifiable intangible assets as of beginning of year $ 47,026 $ 23,077 $ 12,357 $ 82,460 Additions — — 92,290 92,290 Amortization expense (5,929 ) (3,077 ) (4,667 ) (13,673 ) Foreign currency translations (52 ) — (179 ) (231 ) Net identifiable intangible assets as of end of year $ 41,045 $ 20,000 $ 99,801 $ 160,846 Year ended September 30, 2017 Net identifiable intangible assets as of beginning of year $ 52,936 $ 27,937 $ 14,101 $ 94,974 Amortization expense (6,001 ) (4,845 ) (2,004 ) (12,850 ) Foreign currency translations 91 (15 ) 260 336 Net identifiable intangible assets as of end of year $ 47,026 $ 23,077 $ 12,357 $ 82,460 |
Schedule of Indefinite-Lived Intangible Assets | The following table sets forth our identifiable intangible asset balances by segment, net of accumulated amortization, and activity for the years indicated. $ in thousands Private Client Group Capital Markets Asset Management Total Year ended September 30, 2018 Net identifiable intangible assets as of beginning of year $ 47,026 $ 23,077 $ 12,357 $ 82,460 Additions — — 92,290 92,290 Amortization expense (5,929 ) (3,077 ) (4,667 ) (13,673 ) Foreign currency translations (52 ) — (179 ) (231 ) Net identifiable intangible assets as of end of year $ 41,045 $ 20,000 $ 99,801 $ 160,846 Year ended September 30, 2017 Net identifiable intangible assets as of beginning of year $ 52,936 $ 27,937 $ 14,101 $ 94,974 Amortization expense (6,001 ) (4,845 ) (2,004 ) (12,850 ) Foreign currency translations 91 (15 ) 260 336 Net identifiable intangible assets as of end of year $ 47,026 $ 23,077 $ 12,357 $ 82,460 |
Schedule of Indefinite-lived Intangible Assets by Major Class | The following summarizes our identifiable intangible assets by type. September 30, 2018 2017 $ in thousands Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 133,483 $ (39,855 ) $ 99,749 $ (31,098 ) Non-amortizing customer relationships 52,000 — — — Trade name 11,749 (3,588 ) 8,366 (2,076 ) Developed technology 3,430 (1,189 ) 1,630 (706 ) Intellectual property 523 (179 ) 542 (131 ) Non-compete agreements 2,902 (1,998 ) 3,336 (1,551 ) Seller relationship agreements 5,300 (1,732 ) 5,300 (901 ) Total $ 209,387 $ (48,541 ) $ 118,923 $ (36,463 ) The following table summarizes our acquired intangible asset balances by asset class. Weighted average useful life (in years) Amount acquired ( $ in thousands ) Customer relationships 13 $ 34,900 Trade name 20 3,590 Developed technology 10 1,800 Intangible assets subtotal $ 40,290 Non-amortizing customer relationships Indefinite 52,000 Total intangible assets acquired $ 92,290 |
Schedule of Finite-Lived Intangible Assets by Major Class | The following table summarizes our acquired intangible asset balances by asset class. Weighted average useful life (in years) Amount acquired ( $ in thousands ) Customer relationships 13 $ 34,900 Trade name 20 3,590 Developed technology 10 1,800 Intangible assets subtotal $ 40,290 Non-amortizing customer relationships Indefinite 52,000 Total intangible assets acquired $ 92,290 The following summarizes our identifiable intangible assets by type. September 30, 2018 2017 $ in thousands Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 133,483 $ (39,855 ) $ 99,749 $ (31,098 ) Non-amortizing customer relationships 52,000 — — — Trade name 11,749 (3,588 ) 8,366 (2,076 ) Developed technology 3,430 (1,189 ) 1,630 (706 ) Intellectual property 523 (179 ) 542 (131 ) Non-compete agreements 2,902 (1,998 ) 3,336 (1,551 ) Seller relationship agreements 5,300 (1,732 ) 5,300 (901 ) Total $ 209,387 $ (48,541 ) $ 118,923 $ (36,463 ) |
Schedule of Projected Amortization Expense | The following table sets forth the projected amortization expense by fiscal year associated with our identifiable intangible assets with finite lives. Fiscal year ended September 30, $ in thousands 2019 $ 13,596 2020 12,817 2021 12,063 2022 11,456 2023 10,409 Thereafter 48,505 Total $ 108,846 |
BANK DEPOSITS (Tables)
BANK DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 each respective period. September 30, 2018 2017 $ in thousands Balance Weighted-average rate Balance Weighted-average rate Savings and money market accounts $ 19,474,529 0.54 % $ 17,391,091 0.14 % Certificates of deposit 445,442 2.03 % 314,685 1.60 % NOW accounts 5,823 0.01 % 5,197 0.01 % Demand deposits (non-interest-bearing) 15,713 — 21,389 — Total bank deposits $ 19,941,507 0.57 % $ 17,732,362 0.17 % |
Scheduled Maturities of Certificates of Deposit | The following table sets forth the scheduled maturities of certificates of deposit. September 30, 2018 2017 $ in thousands Denominations greater than or equal to $100,000 Denominations less than $100,000 Denominations greater than or equal to $100,000 Denominations less than $100,000 Three months or less $ 29,611 $ 16,960 $ 8,704 $ 4,132 Over three through six months 19,714 12,716 4,692 3,894 Over six through twelve months 37,911 26,078 34,005 11,865 Over one through two years 65,051 40,434 38,713 20,019 Over two through three years 21,200 13,504 48,082 27,847 Over three through four years 43,654 26,245 21,819 12,761 Over four through five years 64,552 27,812 50,805 27,347 Total $ 281,693 $ 163,749 $ 206,820 $ 107,865 |
Interest Expense on Deposits | Interest expense on deposits, excluding interest expense related to affiliate deposits, is summarized in the following table. Year ended September 30, $ in thousands 2018 2017 2016 Savings, money market, and NOW accounts $ 59,340 $ 12,859 $ 4,816 Certificates of deposit 6,217 4,325 5,402 Total interest expense on deposits $ 65,557 $ 17,184 $ 10,218 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Other Borrowings | The following table details the components of other borrowings. September 30, $ in thousands 2018 2017 FHLB advances $ 875,000 $ 875,000 Unsecured lines of credit — 350,000 Secured lines of credit — 260,000 Mortgage notes payable and other 24,059 29,012 Total other borrowings $ 899,059 $ 1,514,012 |
Schedule of Maturities of Other Borrowings | Our other borrowings as of September 30, 2018 , mature as follows based on their contractual terms. Fiscal year ended September 30, $ in thousands 2019 $ 5,222 2020 855,430 2021 30,748 2022 6,084 2023 1,575 Thereafter — Total $ 899,059 |
SENIOR NOTES PAYABLE (Tables)
SENIOR NOTES PAYABLE (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes Payable | The following table summarizes our senior notes payable. September 30, $ in thousands 2018 2017 5.625% senior notes, due 2024 $ 250,000 $ 250,000 3.625% senior notes, due 2026 500,000 500,000 4.95% senior notes, due 2046 800,000 800,000 Total principal amount 1,550,000 1,550,000 Unaccreted premium/(discount) 11,610 11,905 Unamortized debt issuance costs (11,974 ) (13,066 ) Total senior notes payable $ 1,549,636 $ 1,548,839 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Allocation of Income Taxes | The following table details the total income tax provision/(benefit) allocation for each respective period. Year ended September 30, $ in thousands 2018 2017 2016 Recorded in: Net income including noncontrolling interests $ 453,960 $ 289,111 $ 271,293 Equity, arising from cash flow hedges recorded through other comprehensive income/(loss) 14,768 14,239 (7,252 ) Equity, arising from currency translations, net of the impact of net investment hedges recorded through other comprehensive income/(loss) 10,135 (7,427 ) (3,525 ) Equity, arising from available-for-sale securities recorded through other comprehensive income/(loss) (18,875 ) 856 (3,295 ) Equity, arising from excess tax benefits from share-based payments — — (35,121 ) Total $ 459,988 $ 296,779 $ 222,100 |
Provision (Benefit) for Income Taxes | The following table details our provision/(benefit) for income taxes for each respective period. Year ended September 30, $ in thousands 2018 2017 2016 Current: Federal $ 258,480 $ 255,555 $ 287,350 State and local 64,507 37,553 32,101 Foreign 14,424 7,620 10,640 Total current 337,411 300,728 330,091 Deferred: Federal 120,870 (11,316 ) (51,383 ) State and local (4,456 ) (959 ) (6,267 ) Foreign 135 658 (1,148 ) Total deferred 116,549 (11,617 ) (58,798 ) Total provision for income tax $ 453,960 $ 289,111 $ 271,293 |
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 detailed in the following table. Year ended September 30, 2018 2017 2016 Provision calculated at statutory rate 24.5 % 35.0 % 35.0 % Impact of Tax Act 8.1 % — — State income tax, net of federal benefit 3.9 % 2.7 % 1.7 % Tax-exempt interest income (0.6 )% (1.0 )% (0.9 )% Excess tax benefits related to share-based compensation (0.9 )% (2.5 )% — Gains on company-owned life insurance policies which are not subject to tax (0.7 )% (1.7 )% (1.1 )% Federal tax credits (0.7 )% (1.6 )% (1.0 )% Other, net 1.2 % 0.3 % 0.2 % Total provision for income tax 34.8 % 31.2 % 33.9 % |
U.S. and Foreign Components of Income Before Income Taxes | The following table presents our U.S. and foreign components of income including noncontrolling interests and before provision for income taxes. Year ended September 30, $ in thousands 2018 2017 2016 U.S. $ 1,261,537 $ 918,343 $ 776,722 Foreign 43,340 9,635 35,222 Income including noncontrolling interests and before provision for income taxes $ 1,304,877 $ 927,978 $ 811,944 |
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 detailed in the following table. September 30, $ in thousands 2018 2017 Deferred tax assets: Deferred compensation $ 179,711 $ 235,171 Allowances for loan losses and reserves for unfunded commitments 52,801 74,909 Unrealized loss associated with foreign currency translations 6,184 1,928 Unrealized loss associated with available-for-sale securities 20,059 3,342 Accrued expenses 36,200 41,545 Other 11,073 13,665 Total gross deferred tax assets 306,028 370,560 Less: valuation allowance (10 ) (9 ) Total deferred tax assets 306,018 370,551 Deferred tax liabilities: Partnership investments 5,920 (6,326 ) Goodwill and identifiable intangible assets (32,047 ) (38,364 ) Property and equipment (59,972 ) (8,046 ) Other (16,794 ) (4,329 ) Total deferred tax liabilities (102,893 ) (57,065 ) Net deferred tax assets $ 203,125 $ 313,486 |
Aggregate Changes in Liability for Unrecognized Tax Benefits | The following table presents the aggregate changes in the balances for uncertain tax positions. Year ended September 30, $ in thousands 2018 2017 2016 Uncertain tax positions beginning of year $ 20,006 $ 22,173 $ 22,454 Increases for tax positions related to the current year 5,119 3,238 6,496 Increases for tax positions related to prior years 10,065 438 1,284 Decreases for tax positions related to prior years (1,177 ) (717 ) (1,592 ) Decreases due to lapsed statute of limitations (2,862 ) (2,497 ) (1,447 ) Decreases related to settlements (371 ) (2,629 ) (5,022 ) Uncertain tax positions end of year $ 30,780 $ 20,006 $ 22,173 Tax positions related to prior years in the preceding table included positions taken in previously filed tax returns with the Internal Revenue Service and certain states, including an analysis of the impact from the 2018 Supreme Court decision in South Dakota v. Wayfair which impacted our state nexus positions in certain states for certain entities. We continue to evaluate these positions and intend to contest any proposed adjustments made by taxing authorities. |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Off-Balance Sheet Risks | The following table presents RJ Bank’s commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding. $ in thousands September 30, 2018 September 30, 2017 Open-end consumer lines of credit (primarily SBL) $ 7,331,544 $ 5,323,003 Commercial lines of credit $ 1,643,213 $ 1,673,272 Unfunded loan commitments $ 540,596 $ 386,950 Standby letters of credit $ 41,260 $ 39,670 |
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 in the following table. Fiscal year ended September 30, $ in thousands 2019 $ 95,556 2020 83,591 2021 70,487 2022 51,426 2023 39,544 Thereafter 70,160 Total $ 410,764 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Activity in Other Comprehensive Income (Loss) and Related Tax Effects | The activity in OCI, net of the related tax effect, was as follows. Year ended September 30, $ in thousands 2018 2017 2016 Net change in unrealized gain/(loss) on available-for-sale securities and non-credit portion of other-than-temporary impairment losses $ (43,221 ) $ 1,684 $ (5,576 ) Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges (3,315 ) 15,618 2,179 Net change in unrealized gain/(loss) on cash flow hedges 34,806 23,232 (11,833 ) Net other comprehensive income/(loss) $ (11,730 ) $ 40,534 $ (15,230 ) |
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 AOCI. $ in thousands Net investment hedges Currency translations Sub-total: net investment hedges and currency translations Available-for-sale securities Cash flow hedges Total Year ended September 30, 2018 Accumulated other comprehensive income/(loss) as of the beginning of year $ 60,201 $ (79,677 ) $ (19,476 ) $ (2,472 ) $ 6,749 $ (15,199 ) Other comprehensive income/(loss) before reclassifications and taxes 37,853 (31,086 ) 6,767 (55,480 ) 46,680 (2,033 ) Amounts reclassified from accumulated other comprehensive income/(loss), before tax — — — (4,684 ) 657 (4,027 ) Pre-tax net other comprehensive income/(loss) 37,853 (31,086 ) 6,767 (60,164 ) 47,337 (6,060 ) Income tax effect (10,135 ) — (10,135 ) 18,875 (14,768 ) (6,028 ) Reclassification of tax effects related to the Tax Act 53 — 53 (1,932 ) 2,237 358 Net other comprehensive income/(loss) for the year, net of tax 27,771 (31,086 ) (3,315 ) (43,221 ) 34,806 (11,730 ) Accumulated other comprehensive income/(loss) as of the end of year $ 87,972 $ (110,763 ) $ (22,791 ) $ (45,693 ) $ 41,555 $ (26,929 ) Year ended September 30, 2017 Accumulated other comprehensive income/(loss) as of the beginning of year $ 86,482 $ (121,576 ) $ (35,094 ) $ (4,156 ) $ (16,483 ) $ (55,733 ) Other comprehensive income/(loss) before reclassifications and taxes (41,997 ) 43,541 1,544 443 31,843 33,830 Amounts reclassified from accumulated other comprehensive income/(loss), before tax — 6,647 6,647 2,097 5,628 14,372 Pre-tax net other comprehensive income/(loss) (41,997 ) 50,188 8,191 2,540 37,471 48,202 Income tax effect 15,716 (8,289 ) 7,427 (856 ) (14,239 ) (7,668 ) Net other comprehensive income/(loss) for the year, net of tax (26,281 ) 41,899 15,618 1,684 23,232 40,534 Accumulated other comprehensive income/(loss) as of the end of the year $ 60,201 $ (79,677 ) $ (19,476 ) $ (2,472 ) $ 6,749 $ (15,199 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the income statement line items impacted by reclassifications out of AOCI, and the related tax effects. Accumulated other comprehensive income/(loss) components: $ in thousands Increase/(decrease) in amounts reclassified from accumulated other comprehensive income/(loss) Affected line items in income statement Year ended September 30, 2018 Available-for-sale securities: Auction rate securities $ (4,684 ) Other revenue RJ Bank cash flow hedges 657 Interest expense Total before tax (4,027 ) Income tax effect 1,118 Provision for income taxes Total reclassifications for the year, net of tax $ (2,909 ) Year ended September 30, 2017 Available-for-sale securities: Auction rate securities $ 1,458 Other revenue RJ Bank available-for-sale securities 639 Other revenue RJ Bank cash flow hedges 5,628 Interest expense Currency translations 6,647 Other expense Total before tax 14,372 Income tax effect (5,460 ) Provision for income taxes Total reclassifications for the year, net of tax $ 8,912 |
INTEREST INCOME AND INTEREST _2
INTEREST INCOME AND INTEREST EXPENSE (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Interest Income (Expense), Net [Abstract] | |
Interest Income and Interest Expense | The following table details the components of interest income and interest expense. Year ended September 30, $ in thousands 2018 2017 2016 Interest income: Cash segregated pursuant to regulations $ 52,561 $ 37,270 $ 22,287 Securities loaned 14,548 14,049 8,777 Trading instruments 23,016 21,068 19,362 Available-for-sale securities 52,420 27,946 7,596 Margin loans 107,201 85,699 68,712 Bank loans, net of unearned income 722,339 572,171 487,366 Loans to financial advisors 15,078 13,333 8,207 Corporate cash and all other 56,830 30,590 18,090 Total interest income 1,043,993 802,126 640,397 Interest expense: Bank deposits 65,557 17,184 10,218 Securities borrowed 7,630 6,690 3,174 Trading instruments sold but not yet purchased 7,344 6,138 5,035 Brokerage client payables 15,367 4,884 2,084 Other borrowings 22,006 16,559 12,957 Senior notes payable 72,708 94,665 78,533 Other 10,891 7,658 4,055 Total interest expense 201,503 153,778 116,056 Net interest income 842,490 648,348 524,341 Bank loan loss provision (20,481 ) (12,987 ) (28,167 ) Net interest income after bank loan loss provision $ 822,009 $ 635,361 $ 496,174 |
SHARE-BASED AND OTHER COMPENS_2
SHARE-BASED AND OTHER COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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. There were no new employee stock options granted in the year ended September 30, 2018 . The following weighted-average assumptions were used for stock options granted in the years ended September 30, 2017 and 2016 . Year ended September 30, 2017 2016 Dividend yield 1.03 % 1.41 % Expected volatility 30.91 % 28.85 % Risk-free interest rate 1.81 % 1.65 % Expected lives (in years) 5.4 5.4 |
Summary of Option Activity | The following table presents a summary of option activity for grants to employees for the year ended September 30, 2018 . Options for shares (in thousands) Weighted- average exercise price (per share) Weighted- average remaining contractual term (in years) Aggregate intrinsic value ($ in thousands) Outstanding as of beginning of year 2,836 $ 51.63 Exercised (739 ) $ 46.65 Forfeited (70 ) $ 53.24 Outstanding as of end of year 2,027 $ 53.35 2.9 $ 78,438 Exercisable as of end of year 728 $ 47.85 2.2 $ 32,195 |
Option Activity, Additional Disclosures | The following stock option activity occurred under the 2012 Plan for grants to employees for the periods indicated. Year ended September 30, $ in thousands, except per option amounts 2018 2017 2016 Weighted-average grant date fair value per option N/A $ 19.96 $ 13.96 Total intrinsic value of stock options exercised $ 31,797 $ 42,178 $ 16,273 Total grant date fair value of stock options vested $ 14,054 $ 10,768 $ 7,690 |
Pre-Tax Expense Not Yet Recognized for Stock Options Awards | The following table presents pre-tax compensation costs 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, 2018 . Pre-tax compensation costs not yet recognized (in thousands) Remaining weighted-average amortization period (in years) Employees $ 7,449 2.0 Independent contractor financial advisors $ 3,373 3.1 |
Employee and Nonemployee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expense and Income Tax Benefits Related to Awards | The following table presents expense and income tax benefit related to our stock options granted to employees and independent contractor financial advisors for the periods indicated. Year ended September 30, $ in thousands 2018 2017 2016 Total share-based expense $ 9,780 $ 13,597 $ 11,648 Income tax benefit related to share-based expense $ 861 $ 1,783 $ 1,181 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Activity | The following table presents the restricted equity award activity which includes restricted stock and RSUs for grants to employees and members of our Board of Directors for the year ended September 30, 2018 . Shares/Units (in thousands) Weighted- average grant date fair value (per share) Non-vested as of beginning of year 4,744 $ 58.94 Granted 1,225 $ 87.33 Vested (1,089 ) $ 49.02 Forfeited (97 ) $ 64.31 Non-vested as of end of year 4,783 $ 68.39 |
Expense and Income Tax Benefits Related to Awards | The following table presents expense and income tax benefits related to our restricted equity awards granted to our employees and members of our Board of Directors for the periods indicated. Year ended September 30, $ in thousands 2018 2017 2016 Total share-based expense $ 88,602 $ 78,624 $ 62,674 Income tax benefits related to share-based expense $ 23,244 $ 27,658 $ 21,979 |
Restricted Stock | Deutsche WM | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expense and Income Tax Benefits Related to Awards | The following table presents the net impact of the DBRSU s in our Consolidated Statements of Income and Comprehensive Income, including the related income tax effects, for the periods indicated. Year ended September 30, $ in thousands 2018 2017 2016 Amortization of DBRSU prepaid compensation asset $ 4,624 $ 5,270 $ 355 Increase/(decrease) in fair value of derivative liability (8,192 ) 8,031 (2,457 ) Net expense/(gain) before tax $ (3,568 ) $ 13,301 $ (2,102 ) Income tax benefit/(expense) $ (1,438 ) $ 4,963 $ (799 ) |
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, 2018 . Units (in thousands) Non-vested DBRSUs at beginning of year 1,493 Vested (77 ) Forfeited (44 ) Non-vested DBRSUs at end of year 1,372 |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 following table. Actual Requirement for capital adequacy purposes To be well capitalized under regulatory provisions $ in thousands Amount Ratio Amount Ratio Amount Ratio RJF as of September 30, 2018: CET1 $ 5,717,748 24.3 % $ 1,057,404 4.5 % $ 1,527,362 6.5 % Tier 1 capital $ 5,717,748 24.3 % $ 1,409,872 6.0 % $ 1,879,830 8.0 % Total capital $ 5,940,703 25.3 % $ 1,879,830 8.0 % $ 2,349,787 10.0 % Tier 1 leverage $ 5,717,748 15.8 % $ 1,451,360 4.0 % $ 1,814,200 5.0 % RJF as of September 30, 2017: CET1 $ 5,081,335 23.0 % $ 994,950 4.5 % $ 1,437,150 6.5 % Tier 1 capital $ 5,081,335 23.0 % $ 1,326,600 6.0 % $ 1,768,800 8.0 % Total capital $ 5,293,331 23.9 % $ 1,768,800 8.0 % $ 2,211,000 10.0 % Tier 1 leverage $ 5,081,335 15.0 % $ 1,359,168 4.0 % $ 1,698,960 5.0 % |
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 following table. Actual Requirement for capital adequacy purposes To be well capitalized under regulatory provisions $ in thousands Amount Ratio Amount Ratio Amount Ratio RJ Bank as of September 30, 2018: CET1 $ 2,028,525 12.7 % $ 721,112 4.5 % $ 1,041,607 6.5 % Tier 1 capital $ 2,028,525 12.7 % $ 961,483 6.0 % $ 1,281,978 8.0 % Total capital $ 2,228,986 13.9 % $ 1,281,978 8.0 % $ 1,602,472 10.0 % Tier 1 leverage $ 2,028,525 8.8 % $ 926,390 4.0 % $ 1,157,987 5.0 % RJ Bank as of September 30, 2017: CET1 $ 1,821,306 12.5 % $ 654,901 4.5 % $ 945,968 6.5 % Tier 1 capital $ 1,821,306 12.5 % $ 873,201 6.0 % $ 1,164,268 8.0 % Total capital $ 2,003,461 13.8 % $ 1,164,268 8.0 % $ 1,455,335 10.0 % Tier 1 leverage $ 1,821,306 8.9 % $ 816,304 4.0 % $ 1,020,379 5.0 % |
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 2018 2017 Raymond James & Associates, Inc.: (Alternative Method elected) Net capital as a percent of aggregate debit items 28.22 % 21.37 % Net capital $ 934,612 $ 589,420 Less: required net capital (66,239 ) (55,164 ) Excess net capital $ 868,373 $ 534,256 |
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 2018 2017 Raymond James Financial Services, Inc.: (Alternative Method elected) Net capital $ 33,393 $ 34,488 Less: required net capital (250 ) (250 ) Excess net capital $ 33,143 $ 34,238 |
Raymond James Ltd | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Computation Of Risk Adjusted Capital Under IIROC [Table Text Block] | The following table presents the risk adjusted capital of RJ Ltd. (in Canadian dollars). September 30, $ in thousands 2018 2017 Raymond James Ltd.: Risk adjusted capital before minimum $ 106,160 $ 108,985 Less: required minimum capital (250 ) (250 ) Risk adjusted capital $ 105,910 $ 108,735 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share. Year ended September 30, $ in thousands, except per share amounts 2018 2017 2016 Income for basic earnings per common share: Net income attributable to RJF $ 856,695 $ 636,235 $ 529,350 Less allocation of earnings and dividends to participating securities (1,463 ) (1,376 ) (1,256 ) Net income attributable to RJF common shareholders $ 855,232 $ 634,859 $ 528,094 Income for diluted earnings per common share: Net income attributable to RJF $ 856,695 $ 636,235 $ 529,350 Less allocation of earnings and dividends to participating securities (1,433 ) (1,350 ) (1,236 ) Net income attributable to RJF common shareholders $ 855,262 $ 634,885 $ 528,114 Common shares: Average common shares in basic computation 145,271 143,275 141,773 Dilutive effect of outstanding stock options and certain RSUs 3,567 3,372 2,740 Average common shares used in diluted computation 148,838 146,647 144,513 Earnings per common share: Basic $ 5.89 $ 4.43 $ 3.72 Diluted $ 5.75 $ 4.33 $ 3.65 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 527 1,657 3,255 |
Dividends per Common Share Declared and Paid | Dividends per common share declared and paid are detailed in the following table for each respective period. Year ended September 30, 2018 2017 2016 Dividends per common share - declared $ 1.10 $ 0.88 $ 0.80 Dividends per common share - paid $ 1.02 $ 0.86 $ 0.78 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table presents information concerning operations in these segments of business. Year ended September 30, $ in thousands 2018 2017 2016 Revenues: Private Client Group $ 5,120,831 $ 4,437,588 $ 3,626,718 Capital Markets 991,604 1,034,235 1,017,151 Asset Management 654,418 487,735 404,421 RJ Bank 815,284 627,845 517,243 Other 59,992 65,498 46,291 Intersegment eliminations (166,308 ) (128,026 ) (90,704 ) Total revenues $ 7,475,821 $ 6,524,875 $ 5,521,120 Income/(loss) excluding noncontrolling interests and before provision for income taxes: Private Client Group $ 576,094 $ 372,950 $ 340,564 Capital Markets 90,647 141,236 139,173 Asset Management 235,336 171,736 132,158 RJ Bank 491,779 409,303 337,296 Other (83,201 ) (169,879 ) (148,548 ) Pre-tax income excluding noncontrolling interests 1,310,655 925,346 800,643 Net income/(loss) attributable to noncontrolling interests (5,778 ) 2,632 11,301 Income including noncontrolling interests and before provision for income taxes $ 1,304,877 $ 927,978 $ 811,944 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents information concerning operations in these segments of business. Year ended September 30, $ in thousands 2018 2017 2016 Revenues: Private Client Group $ 5,120,831 $ 4,437,588 $ 3,626,718 Capital Markets 991,604 1,034,235 1,017,151 Asset Management 654,418 487,735 404,421 RJ Bank 815,284 627,845 517,243 Other 59,992 65,498 46,291 Intersegment eliminations (166,308 ) (128,026 ) (90,704 ) Total revenues $ 7,475,821 $ 6,524,875 $ 5,521,120 Income/(loss) excluding noncontrolling interests and before provision for income taxes: Private Client Group $ 576,094 $ 372,950 $ 340,564 Capital Markets 90,647 141,236 139,173 Asset Management 235,336 171,736 132,158 RJ Bank 491,779 409,303 337,296 Other (83,201 ) (169,879 ) (148,548 ) Pre-tax income excluding noncontrolling interests 1,310,655 925,346 800,643 Net income/(loss) attributable to noncontrolling interests (5,778 ) 2,632 11,301 Income including noncontrolling interests and before provision for income taxes $ 1,304,877 $ 927,978 $ 811,944 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | No individual client accounted for more than ten percent of total revenues in any of the years presented. Year ended September 30, $ in thousands 2018 2017 2016 Net interest income/(expense): Private Client Group $ 165,304 $ 136,756 $ 97,042 Capital Markets 4,422 6,543 9,432 Asset Management 1,974 623 183 RJ Bank 704,361 574,796 478,690 Other (33,571 ) (70,370 ) (61,006 ) Net interest income $ 842,490 $ 648,348 $ 524,341 |
Reconciliation of Assets from Segment to Consolidated | The following table presents our total assets on a segment basis. September 30, $ in thousands 2018 2017 Total assets: Private Client Group $ 10,173,186 $ 9,967,320 Capital Markets 2,278,977 2,396,033 Asset Management 386,810 151,111 RJ Bank 22,922,355 20,611,898 Other 1,651,596 1,757,094 Total $ 37,412,924 $ 34,883,456 |
Revenues, Income Before Provision for Income Taxes and Excluding Noncontrolling Interests, and Total Assets, Classified by Major Geographic Areas | The following table presents our revenues and income before provision for income taxes and excluding noncontrolling interests, classified by major geographic area in which they were earned. Year ended September 30, $ in thousands 2018 2017 2016 Revenues: U.S. $ 6,914,117 $ 6,057,971 $ 5,119,536 Canada 422,598 354,685 278,652 Europe 139,106 107,831 85,718 Other — 4,388 37,214 Total $ 7,475,821 $ 6,524,875 $ 5,521,120 Pre-tax income/(loss) excluding noncontrolling interests: U.S. $ 1,268,769 $ 919,324 $ 778,351 Canada 47,403 14,138 20,243 Europe (5,517 ) (3,577 ) (3,791 ) Other — (4,539 ) 5,840 Total $ 1,310,655 $ 925,346 $ 800,643 The following table presents our total assets classified by major geographic area in which they were held. September 30, $ in thousands 2018 2017 Total assets: U.S. $ 34,650,260 $ 32,200,852 Canada 2,673,452 2,592,480 Europe 89,148 81,090 Other 64 9,034 Total $ 37,412,924 $ 34,883,456 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statement of Financial Condition | The following table presents the Parent’s statements of financial condition. September 30, $ in thousands 2018 2017 Assets: Cash and cash equivalents $ 694,695 $ 528,397 Assets segregated pursuant to regulations 23,411 40,145 Intercompany receivables from subsidiaries (primarily nonbank subsidiaries) 1,156,276 1,167,084 Investments in consolidated subsidiaries: Bank subsidiary 2,020,710 1,823,342 Non-bank subsidiaries 4,031,429 3,448,191 Property and equipment, net 14,173 14,457 Goodwill and identifiable intangible assets, net 31,954 31,954 Other assets 659,901 624,452 Total assets $ 8,632,549 $ 7,678,022 Liabilities and equity: Other payables $ 93,583 $ 80,576 Intercompany payables to subsidiaries (primarily nonbank subsidiaries) 140,949 52,699 Accrued compensation and benefits 479,920 414,195 Senior notes payable 1,549,636 1,548,839 Total liabilities 2,264,088 2,096,309 Equity 6,368,461 5,581,713 Total liabilities and equity $ 8,632,549 $ 7,678,022 |
Condensed Statement of Income | The following table presents the Parent’s statements of income. Year ended September 30, $ in thousands 2018 2017 2016 Revenues: Dividends from non-bank subsidiaries $ 225,492 $ 183,347 $ 248,020 Dividends from bank subsidiary 130,000 125,000 75,000 Interest from subsidiaries 25,234 16,404 8,999 Interest income 4,292 1,838 807 Other 19,396 25,323 4,654 Total revenues 404,414 351,912 337,480 Interest expense (73,907 ) (94,921 ) (78,089 ) Net revenues 330,507 256,991 259,391 Non-interest expenses: Compensation and benefits 67,621 61,765 54,664 Communications and information processing 8,862 8,741 6,330 Occupancy and equipment costs 1,156 677 636 Business development 19,833 18,773 18,364 Losses on extinguishment of debt — 45,746 — Other 17,411 14,707 9,792 Intercompany allocations and charges (31,817 ) (30,643 ) (40,424 ) Total non-interest expenses 83,066 119,766 49,362 Income before income tax benefit and equity in undistributed net income of subsidiaries 247,441 137,225 210,029 Income tax benefit (11,436 ) (85,529 ) (64,658 ) Income before equity in undistributed net income of subsidiaries 258,877 222,754 274,687 Equity in undistributed net income of subsidiaries 597,818 413,481 254,663 Net income $ 856,695 $ 636,235 $ 529,350 |
Condensed Statement of Cash Flows | The following table presents the Parent’s statements of cash flows. Year ended September 30, $ in thousands 2018 2017 2016 Cash flows from operating activities: Net income $ 856,695 $ 636,235 $ 529,350 Adjustments to reconcile net income to net cash provided by operating activities: Loss/(gain) on investments 1,196 (14,588 ) (11,538 ) (Gain)/loss on company-owned life insurance policies (37,173 ) (47,920 ) (25,642 ) Equity in undistributed net income of subsidiaries (597,818 ) (413,481 ) (254,663 ) Losses on extinguishment of debt — 45,746 — Other 114,294 97,616 73,798 Net change in: Assets segregated pursuant to regulations 16,734 (40,145 ) — Intercompany receivables 6,468 178,631 19,641 Other assets 47,411 80,561 97,067 Intercompany payables 88,251 38,577 (115,657 ) Other payables 13,009 (764 ) 2,396 Accrued compensation and benefits 65,725 68,180 58,520 Net cash provided by operating activities 574,792 628,648 373,272 Cash flows from investing activities: (Investments in)/distributions from subsidiaries, net (205,311 ) (36,520 ) (637,689 ) Advances to subsidiaries, net 4,340 (117,670 ) (394,383 ) Proceeds from sales/(purchases) of investments, net 12,148 4,836 24,609 Purchase of investments in company-owned life insurance policies, net (69,711 ) (40,661 ) (49,488 ) Net cash used in investing activities (258,534 ) (190,015 ) (1,056,951 ) Cash flows from financing activities: Proceeds from borrowing on the RJF Credit Facility 300,000 — — Repayment of borrowings on the RJF Credit Facility (300,000 ) — — Proceeds from senior note issuances, net of debt issuance costs paid — 508,473 792,221 Extinguishment of senior notes payable — (650,000 ) (250,000 ) Premium paid on extinguishment of senior notes payable — (36,892 ) — Exercise of stock options and employee stock purchases 63,347 57,462 43,331 Purchase of treasury stock (61,971 ) (34,055 ) (162,502 ) Dividends on common stock (151,336 ) (127,202 ) (113,435 ) Net cash provided by/(used in) financing activities (149,960 ) (282,214 ) 309,615 Net increase/(decrease) in cash and cash equivalents 166,298 156,419 (374,064 ) Cash and cash equivalents at beginning of year 528,397 371,978 746,042 Cash and cash equivalents at end of year $ 694,695 $ 528,397 $ 371,978 Supplemental disclosures of cash flow information: Cash paid for interest $ 77,736 $ 98,554 $ 74,568 Cash paid for income taxes, net $ 162,867 $ 92,568 $ 27,397 Supplemental disclosures of noncash activity: Investments in subsidiaries, net $ 356 $ 24,352 $ 781 Losses on extinguishment of debt $ — $ 8,854 $ — |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Sep. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent ownership of subsidiaries that are consolidated | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2018USD ($)subsidiaryindependent_pricing_servicerrisk_factorsegmentinstitutioninvestorcomponentFund | Sep. 30, 2017USD ($) | |
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 and loans to financial advisors [Abstract] | ||
Repayment period of loans to financial advisors and certain key revenue producers, minimum (in years) | 5 years | |
Repayment period of loans to financial advisors and certain key revenue producers, maximum (in years) | 8 years | |
Loans associated with financial advisors no longer affiliated with the entity, gross | $ | $ 20 | $ 22 |
Loans associated with financial advisors no longer affiliated with the entity, allowance | $ | $ 8 | $ 8 |
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 | $ | $ 100 | |
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 | |
Number of single investor members or limited partners in funds | subsidiary | 1 | |
Number of multi-investor tax credit funds in which RJTCF is the managing member | Fund | 1 | |
Number of investors with a guaranteed return on their investment | investor | 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 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Minimum | Buildings, buildings & land improvements and building components | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 10 years |
Minimum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 3 years |
Minimum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 2 years |
Maximum | Buildings, buildings & land improvements and building components | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 31 years |
Maximum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 5 years |
Maximum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 10 years |
ACQUISITIONS, Schedule of Acqui
ACQUISITIONS, Schedule of Acquisitions (Details) | Nov. 30, 2017 |
Scout Investments, Inc. | |
Business Acquisition [Line Items] | |
Business acquisition, percentage of voting interest acquired | 100.00% |
ACQUISITIONS, Acquisition Expen
ACQUISITIONS, Acquisition Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | $ 3,927 | $ 17,995 | $ 40,706 |
Legal and regulatory | |||
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | 2,281 | 3,192 | 8,334 |
Severance | |||
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | 990 | 5,859 | 866 |
Information systems integration costs | |||
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | 162 | 1,380 | 21,752 |
Acquisition and integration-related incentive compensation costs | |||
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | 0 | 5,474 | 0 |
Early termination costs of assumed contracts | |||
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | 0 | 1,329 | 0 |
Post-closing purchase price contingency | |||
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | 0 | (3,345) | 0 |
DBRSU obligation and related hedge | |||
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | 0 | 770 | 4,837 |
All other | |||
Business Acquisition [Line Items] | |||
Total acquisition-related expenses | $ 494 | $ 3,336 | $ 4,917 |
FAIR VALUE, Recurring and Nonre
FAIR VALUE, Recurring and Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Assets, Fair Value Disclosure [Abstract] | ||
Total trading instruments | $ 702,390 | $ 564,263 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 2,696,366 | 2,188,282 |
Derivative assets, gross | 235,554 | 374,503 |
Amount of derivative assets offset | 55,330 | 55,728 |
Net amounts presented in the Statements of Financial Condition | 180,224 | 318,775 |
Private equity investments | 147,158 | 198,779 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total trading instruments sold but not yet purchased | 235,342 | 221,449 |
Derivative liability | 293,766 | 416,374 |
Derivative liability, collateral, amount of offset | (46,853) | (59,410) |
Derivative liability | 246,913 | 356,964 |
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 | 123,911 | 23,001 |
Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 19,116,423 | 16,836,745 |
Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 645,203 | 510,666 |
Equity securities | 15,465 | 16,479 |
Brokered certificates of deposit | 38,616 | 31,492 |
Other | 3,106 | 5,626 |
Total trading instruments | 702,390 | 564,263 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 2,696,366 | 2,188,282 |
Amount of derivative assets offset | 55,330 | 55,728 |
Netting adjustment | (55,330) | (55,728) |
Net amounts presented in the Statements of Financial Condition | 180,224 | 318,775 |
Other investments | 202,202 | 220,980 |
Total assets at fair value on a recurring basis | 3,928,340 | 3,491,079 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 223,076 | 211,989 |
Equity securities | 5,678 | 9,460 |
Other | 6,588 | |
Total trading instruments sold but not yet purchased | 235,342 | 221,449 |
Netting adjustment | (46,853) | (59,410) |
Derivative liability | 246,913 | 356,964 |
Total liabilities at fair value on a recurring basis | 482,255 | 578,413 |
Recurring | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1,163 | 304 |
Recurring | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 26,373 | 36,558 |
Recurring | Government obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 194,476 | 167,622 |
Recurring | Agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 71 | 2,477 |
Recurring | Non-agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 993 | 5,028 |
Recurring | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 248,918 | 221,967 |
Recurring | Corporate obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 110,122 | 90,938 |
Recurring | Government and agency obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 90,514 | 35,331 |
Recurring | Agency MBS and CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 126,933 | 133,983 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 2,628,739 | 2,081,079 |
Recurring | Non-agency CMOs and ABS | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 68,716 | 28,447 |
Recurring | Other securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 942 | 1,032 |
Recurring | ARS - preferred | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 66,685 | 106,171 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 32,795 | 16,711 |
Equity securities | 15,335 | 16,090 |
Brokered certificates of deposit | 0 | 0 |
Other | 23 | 32 |
Total trading instruments | 48,153 | 32,833 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 942 | 1,032 |
Derivative assets, gross | 0 | 0 |
Other investments | 200,786 | 220,312 |
Total assets at fair value on a recurring basis | 249,881 | 254,177 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 196,174 | 171,689 |
Equity securities | 5,525 | 8,118 |
Other | 3 | |
Total trading instruments sold but not yet purchased | 201,702 | 179,807 |
Derivative contracts liability, gross | 0 | 0 |
Total liabilities at fair value on a recurring basis | 201,702 | 179,807 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 30 | 304 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1,597 | 1,286 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Government obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 194,476 | 167,622 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Agency MBS and CMOs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 71 | 2,477 |
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 | 0 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1,206 | 83 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Corporate obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 10,184 | 9,361 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Government and agency obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 18,660 | 6,354 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Agency MBS and CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 2,745 | 913 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 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) | Other securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 942 | 1,032 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | ARS - preferred | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 0 | 0 |
Recurring | Significant other observable inputs (Level 2) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 612,404 | 493,950 |
Equity securities | 130 | 389 |
Brokered certificates of deposit | 38,616 | 31,492 |
Other | 2,005 | 0 |
Total trading instruments | 653,155 | 525,831 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 2,628,739 | 2,081,079 |
Derivative assets, gross | 235,554 | 374,503 |
Other investments | 618 | 332 |
Total assets at fair value on a recurring basis | 3,518,066 | 2,981,745 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 26,902 | 40,300 |
Equity securities | 153 | 1,342 |
Other | 0 | |
Total trading instruments sold but not yet purchased | 27,055 | 41,642 |
Derivative contracts liability, gross | 293,766 | 416,374 |
Total liabilities at fair value on a recurring basis | 320,821 | 458,016 |
Recurring | Significant other observable inputs (Level 2) | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 1,133 | 0 |
Recurring | Significant other observable inputs (Level 2) | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 24,776 | 35,272 |
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 | 993 | 5,028 |
Recurring | Significant other observable inputs (Level 2) | Municipal and provincial obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 247,712 | 221,884 |
Recurring | Significant other observable inputs (Level 2) | Corporate obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 99,938 | 81,577 |
Recurring | Significant other observable inputs (Level 2) | Government and agency obligations | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 71,854 | 28,977 |
Recurring | Significant other observable inputs (Level 2) | Agency MBS and CMOs | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 124,188 | 133,070 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 2,628,739 | 2,081,079 |
Recurring | Significant other observable inputs (Level 2) | Non-agency CMOs and ABS | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 68,712 | 28,442 |
Recurring | Significant other observable inputs (Level 2) | Other securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 0 | 0 |
Recurring | Significant other observable inputs (Level 2) | ARS - preferred | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 0 | 0 |
Recurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 4 | 5 |
Equity securities | 0 | 0 |
Brokered certificates of deposit | 0 | 0 |
Other | 1,078 | 5,594 |
Total trading instruments | 1,082 | 5,599 |
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 66,685 | 106,171 |
Derivative assets, gross | 0 | 0 |
Other investments | 798 | 336 |
Total assets at fair value on a recurring basis | 124,488 | 200,991 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Other | 6,585 | |
Total trading instruments sold but not yet purchased | 6,585 | 0 |
Derivative contracts liability, gross | 0 | 0 |
Total liabilities at fair value on a recurring basis | 6,585 | 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 | 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 (includes $19,672 and $- pledged as collateral) | 0 | 0 |
Recurring | Significant unobservable inputs (Level 3) | Non-agency CMOs and ABS | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total debt securities | 4 | 5 |
Recurring | Significant unobservable inputs (Level 3) | Other securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 0 | 0 |
Recurring | Significant unobservable inputs (Level 3) | ARS - preferred | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 66,685 | 106,171 |
Nonrecurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 68,310 | 52,753 |
Other Assets: OREO | 575 | 880 |
Total assets at fair value on a recurring basis | 68,885 | 53,633 |
Nonrecurring | Impaired loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 28,295 | 41,468 |
Nonrecurring | Loans held for sale, net | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 40,015 | 11,285 |
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 recurring 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, net | ||
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 | 49,676 | 28,759 |
Other Assets: OREO | 575 | 880 |
Total assets at fair value on a recurring basis | 50,251 | 29,639 |
Nonrecurring | Significant other observable inputs (Level 2) | Impaired loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 9,661 | 17,474 |
Nonrecurring | Significant other observable inputs (Level 2) | Loans held for sale, net | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 40,015 | 11,285 |
Nonrecurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 18,634 | 23,994 |
Other Assets: OREO | 0 | 0 |
Total assets at fair value on a recurring basis | 18,634 | 23,994 |
Nonrecurring | Significant unobservable inputs (Level 3) | Impaired loans | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 18,634 | 23,994 |
Nonrecurring | Significant unobservable inputs (Level 3) | Loans held for sale, net | ||
Assets, Fair Value Disclosure [Abstract] | ||
Bank loans, net | 0 | 0 |
Interest rate contracts | Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Matched book | 160,345 | 288,035 |
Amount of derivative assets offset | 55,330 | 55,728 |
Net amounts presented in the Statements of Financial Condition | 18,738 | 30,708 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 160,345 | 288,035 |
Derivative liability, collateral, amount of offset | (46,853) | (59,410) |
Derivative liability | 66,539 | 42,483 |
Interest rate contracts | Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate contracts | Recurring | Significant other observable inputs (Level 2) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Matched book | 160,345 | 288,035 |
Derivative assets, gross | 74,068 | 86,436 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 160,345 | 288,035 |
Derivative liability | 113,392 | 101,893 |
Interest rate contracts | Recurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Matched book | 0 | 0 |
Derivative liability | 0 | 0 |
Foreign exchange contracts | Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Net amounts presented in the Statements of Financial Condition | 1,141 | 32 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 4,449 | 646 |
Foreign exchange contracts | Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | 0 |
Foreign exchange contracts | Recurring | Significant other observable inputs (Level 2) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets, gross | 1,141 | 32 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 4,449 | 646 |
Foreign exchange contracts | Recurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative contracts liability, gross | 0 | 0 |
DBRSU obligation (equity) | Recurring | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 15,580 | 25,800 |
DBRSU obligation (equity) | Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | 0 |
DBRSU obligation (equity) | Recurring | Significant other observable inputs (Level 2) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 15,580 | 25,800 |
DBRSU obligation (equity) | Recurring | Significant unobservable inputs (Level 3) | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | 0 |
Private equity investments | Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Private equity investments not measured at NAV | 55,923 | 88,885 |
Private equity investments measured at NAV | 91,235 | 109,894 |
Private equity investments | 147,158 | 198,779 |
Private equity investments | Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Private equity investments not measured at NAV | 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 not measured at NAV | 0 | 0 |
Private equity investments | 0 | 0 |
Private equity investments | Recurring | Significant unobservable inputs (Level 3) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Private equity investments not measured at NAV | 55,923 | |
Private equity investments | $ 55,923 | $ 88,885 |
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, 2018 | Sep. 30, 2017 | |
Percentage of instruments measured at fair value on a recurring basis [Abstract] | ||
Instruments measured at fair value, percentage of assets (in hundredths) | 10.00% | 10.00% |
Instruments measured at fair value, percentage of liabilities (in hundredths) | 2.00% | 2.00% |
Instruments measured at fair value, Level 3, percentage of assets (in hundredths) | 3.00% | 6.00% |
Trading instruments | Non-agency CMOs and ABS | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | $ 5 | $ 7 |
Total gains/(losses) for the year: | ||
Included in earnings | 0 | 1 |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 0 | 0 |
Sales | 0 | 0 |
Distributions | (1) | (3) |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 4 | 5 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | 0 | 1 |
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year | 0 | 0 |
Trading instruments | Other | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 5,594 | 6,020 |
Total gains/(losses) for the year: | ||
Included in earnings | (2,607) | (2,568) |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 82,060 | 67,316 |
Sales | (83,969) | (65,174) |
Distributions | 0 | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 1,078 | 5,594 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | (315) | (1,626) |
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year | 0 | 0 |
Available-for-sale securities | ARS – municipal obligations | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 0 | 25,147 |
Total gains/(losses) for the year: | ||
Included in earnings | 0 | 641 |
Included in other comprehensive income | 0 | 2,344 |
Purchases and contributions | 0 | 0 |
Sales | 0 | (28,132) |
Distributions | 0 | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 0 | 0 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | 0 | 0 |
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year | 0 | 0 |
Available-for-sale securities | ARS - preferred | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 106,171 | 100,018 |
Total gains/(losses) for the year: | ||
Included in earnings | 4,684 | (84) |
Included in other comprehensive income | 1,279 | 7,705 |
Purchases and contributions | 0 | 0 |
Sales | (45,449) | (1,468) |
Distributions | 0 | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 66,685 | 106,171 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | 0 | 0 |
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year | 3,132 | 7,705 |
Private equity and other investments | Private equity investments | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 88,885 | 83,165 |
Total gains/(losses) for the year: | ||
Included in earnings | (4,847) | 8,343 |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 0 | 5,245 |
Sales | (28,115) | (168) |
Distributions | 0 | (7,700) |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 55,923 | 88,885 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | (16,068) | 8,331 |
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year | 0 | 0 |
Private equity and other investments | Other investments | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 336 | 441 |
Total gains/(losses) for the year: | ||
Included in earnings | (91) | 118 |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 762 | 217 |
Sales | (209) | (245) |
Distributions | 0 | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | (195) |
Fair value end of year | 798 | 336 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | (300) | 118 |
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year | 0 | 0 |
Trading instruments | Other liabilities | ||
Changes in Level 3 curring fair value measurements, liabilities [Roll Forward] | ||
Fair value beginning of year | 0 | 0 |
Total gains/(losses) for the year: | ||
Included in earnings | (1,521) | 0 |
Included in other comprehensive income | 0 | 0 |
Purchases and contributions | 2,199 | 0 |
Sales | (7,263) | 0 |
Distributions | 0 | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | (6,585) | 0 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | (1,521) | 0 |
Unrealized gains/(losses) for the year included in other comprehensive income for instruments held at the end of the year | $ 0 | $ 0 |
FAIR VALUE, Significant Assumpt
FAIR VALUE, Significant Assumptions Used in Valuation of Level 3 Financial Instruments (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | $ 3,928,340 | $ 3,491,079 |
Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | 68,885 | 53,633 |
Significant unobservable inputs (Level 3) | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | 124,488 | 200,991 |
Significant unobservable inputs (Level 3) | Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | 18,634 | 23,994 |
ARS - preferred | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | 66,685 | 106,171 |
Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | 43,012 | |
Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Transaction price or other investment-specific events | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | 12,911 | 20,431 |
Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Income or market approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | 68,454 | |
Impaired loans residential | Significant unobservable inputs (Level 3) | Nonrecurring | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | $ 17,076 | $ 20,736 |
Impaired loans residential | Significant unobservable inputs (Level 3) | Nonrecurring | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, prepayment rate (in years) | 7 years | 7 years |
Impaired loans residential | Significant unobservable inputs (Level 3) | Nonrecurring | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, prepayment rate (in years) | 12 years | 12 years |
Impaired loans residential | Significant unobservable inputs (Level 3) | Nonrecurring | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, prepayment rate (in years) | 10 years 6 months | 10 years 4 months 24 days |
Impaired loans residential | Significant unobservable inputs (Level 3) | Nonrecurring | Collateral or discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | $ 1,558 | |
Impaired loans residential | Significant unobservable inputs (Level 3) | Nonrecurring | Appraisal, discounted cash flow, or distressed enterprise value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets at fair value | $ 3,258 | |
Discount Rate | ARS - preferred | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, fair value measurement input rates | 0.0650 | 0.0546 |
Discount Rate | ARS - preferred | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, fair value measurement input rates | 0.0785 | 0.0681 |
Discount Rate | ARS - preferred | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, fair value measurement input rates | 0.0713 | 0.0603 |
Discount Rate | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.25 | |
Discount Rate | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.13 | |
Discount Rate | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.25 | |
Discount Rate | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.224 | |
Average Interest Rates Applicable to Future Income on Securities | ARS - preferred | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, fair value measurement input rates | 0.0413 | 0.0258 |
Average Interest Rates Applicable to Future Income on Securities | ARS - preferred | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, fair value measurement input rates | 0.0551 | 0.0344 |
Average Interest Rates Applicable to Future Income on Securities | ARS - preferred | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Debt securities, fair value measurement input rates | 0.0447 | 0.0272 |
Terminal Growth Rate | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.03 | |
Terminal Growth Rate | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.03 | |
Terminal Growth Rate | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.03 | |
Terminal EBITDA Multiple | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 10 | |
EBITDA Multiple | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Market approach - market multiple method | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 5.25 | |
EBITDA Multiple | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Market approach - market multiple method | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 7 | |
EBITDA Multiple | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Market approach - market multiple method | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 5.80 | |
Weighting Assigned to Percentage of Par Used in Security Valuation Scenario | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Market approach - market multiple method | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.870 | |
Weighting Assigned to Percentage of Par Used in Security Valuation Scenario | Private equity investments | Significant unobservable inputs (Level 3) | Recurring | Market approach - market multiple method | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Equity investments, fair value measurement input rates | 0.130 |
FAIR VALUE, Investments in Priv
FAIR VALUE, Investments in Private Equity Measured at Net Asset Value Per Share (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Instruments measured at fair value, percentage of assets | 10.00% | 10.00% |
Instruments measured at fair value, percentage of liabilities | 2.00% | 2.00% |
Total private equity investments | $ 147,158 | $ 198,779 |
Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV | 91,235 | 109,894 |
Private equity investments not measured at NAV | 55,923 | 88,885 |
Total private equity investments | 147,158 | 198,779 |
Noncontrolling Interest | Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total private equity investments | 44,000 | 54,000 |
Parent | Private equity investments | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV | 18,418 | 20,973 |
Total private equity investments | $ 103,000 | $ 145,000 |
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, 2018 | Sep. 30, 2017 | |
Carrying amount | ||
Financial assets: | ||
Bank loans, net | $ 19,449,790 | $ 16,954,042 |
Loans to financial advisors, net | 934,420 | 873,272 |
Financial liabilities: | ||
Bank deposits | 19,941,507 | 17,732,362 |
Other borrowings | 23,966 | 28,813 |
Senior notes payable | 1,549,636 | 1,548,839 |
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 | 0 |
Significant other observable inputs (Level 2) | ||
Financial assets: | ||
Bank loans, net | 123,911 | 23,001 |
Loans to financial advisors, net | 0 | 0 |
Financial liabilities: | ||
Bank deposits | 19,496,066 | 17,417,678 |
Other borrowings | 23,900 | 29,278 |
Senior notes payable | 1,557,728 | 1,647,696 |
Significant unobservable inputs (Level 3) | ||
Financial assets: | ||
Bank loans, net | 19,116,423 | 16,836,745 |
Loans to financial advisors, net | 748,437 | 708,487 |
Financial liabilities: | ||
Bank deposits | 438,513 | 313,359 |
Other borrowings | 0 | 0 |
Senior notes payable | 0 | 0 |
Recurring | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 19,240,334 | 16,859,746 |
Loans to financial advisors, net | 748,437 | 708,487 |
Financial liabilities: | ||
Bank deposits | 19,934,579 | 17,731,037 |
Other borrowings | 23,900 | 29,278 |
Senior notes payable | $ 1,557,728 | $ 1,647,696 |
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, 2018 | Sep. 30, 2017 |
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | $ 2,760,652 | $ 2,192,402 |
Gross unrealized gains | 6,170 | 6,422 |
Gross unrealized losses | (70,456) | (10,542) |
Fair value | 2,696,366 | 2,188,282 |
RJ Bank | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 2,699,743 | 2,090,728 |
Gross unrealized gains | 394 | 1,925 |
Gross unrealized losses | (70,456) | (10,542) |
Fair value | 2,629,681 | 2,082,111 |
RJ Bank | Agency MBS and CMOs | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 2,698,168 | 2,089,153 |
Gross unrealized gains | 394 | 1,925 |
Gross unrealized losses | (69,823) | (9,999) |
Fair value | 2,628,739 | 2,081,079 |
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 | (633) | (543) |
Fair value | 942 | 1,032 |
Non-broker-dealer subsidiaries | ARS - preferred | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 60,909 | 101,674 |
Gross unrealized gains | 5,776 | 4,497 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 66,685 | $ 106,171 |
AVAILABLE FOR SALE SECURITIES_2
AVAILABLE FOR SALE SECURITIES, Contractual Maturities (Details) - RJ Bank - Agency MBS and CMOs $ in Thousands | Sep. 30, 2018USD ($) |
Amortized cost [Abstract] | |
Within one year | $ 2,656 |
After one but within five years | 245,214 |
After five but within ten years | 898,553 |
After ten years | 1,551,745 |
Total | 2,698,168 |
Carrying value [Abstract] | |
Within one year | 2,641 |
After one but within five years | 239,247 |
After five but within ten years | 876,432 |
After ten years | 1,510,419 |
Total | $ 2,628,739 |
Weighted-average yield [Abstract] | |
Within one year (in hundredths) | 1.70% |
After one but within five years (in hundredths) | 2.25% |
After five but within ten years (in hundredths) | 2.24% |
After ten years (in hundredths) | 2.32% |
Total (in hundredths) | 2.29% |
AVAILABLE FOR SALE SECURITIES_3
AVAILABLE FOR SALE SECURITIES, Gross Unrealized Losses and Fair Value and Significant Assumptions (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Estimated fair value less than 12 months | $ 1,102,652 | $ 1,119,715 |
Estimated fair value 12 months or more | 1,426,592 | 296,560 |
Total estimated fair value | 2,529,244 | 1,416,275 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses less than 12 months | (19,906) | (5,621) |
Unrealized losses 12 months or more | (50,550) | (4,921) |
Unrealized losses | (70,456) | (10,542) |
RJ Bank | Agency MBS and CMOs | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Estimated fair value less than 12 months | 1,102,652 | 1,119,715 |
Estimated fair value 12 months or more | 1,425,650 | 295,528 |
Total estimated fair value | 2,528,302 | 1,415,243 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses less than 12 months | (19,906) | (5,621) |
Unrealized losses 12 months or more | (49,917) | (4,378) |
Unrealized losses | (69,823) | (9,999) |
RJ Bank | Other securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Estimated fair value less than 12 months | 0 | 0 |
Estimated fair value 12 months or more | 942 | 1,032 |
Total estimated fair value | 942 | 1,032 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Unrealized losses less than 12 months | 0 | 0 |
Unrealized losses 12 months or more | (633) | (543) |
Unrealized losses | $ (633) | $ (543) |
AVAILABLE FOR SALE SECURITIES_4
AVAILABLE FOR SALE SECURITIES, Narrative (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)position | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | $ 2,696,366 | $ 2,188,282 | |
Proceeds from sales of available-for-sale securities | 45,449 | 93,774 | $ 11,062 |
Federal National Mortgage Association (FNMA) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost basis | 1,820,000 | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 1,770,000 | ||
Federal Home Loan Mortgage Corporation (FHLMC) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost basis | 667,000 | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 647,000 | ||
RJ Bank available for sale securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales of available-for-sale securities | 8,000 | ||
Agency and Non-agency MBS and CMO [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales of available-for-sale securities | 66,000 | ||
Auction rate securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales of available-for-sale securities | 45,000 | 30,000 | $ 3,000 |
Par value of auction rate securities repurchased | 72,000 | ||
RJ Bank | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | $ 2,629,681 | 2,082,111 | |
RJ Bank | Agency MBS and CMOs | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position | position | 255 | ||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | position | 96 | ||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | position | 159 | ||
Amortized cost basis | $ 2,698,168 | ||
Available-for-sale securities (includes $19,672 and $- pledged as collateral) | 2,628,739 | $ 2,081,079 | |
Other revenues | Auction rate securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, gross realized gains | $ 5,000 |
AVAILABLE FOR SALE SECURITIES_5
AVAILABLE FOR SALE SECURITIES, OTTI Related to Credit Losses Recognized in Other Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 | $ 0 | $ 8,107 | $ 11,847 |
Decreases to the amount related to credit losses for securities sold during the year | 0 | (8,107) | (3,740) |
Amount related to credit losses on securities we held at the end of the year | $ 0 | $ 0 | $ 8,107 |
DERIVATIVE ASSETS AND DERIVAT_3
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative [Line Items] | ||
Receivable for uncollectible derivative transaction revenues | $ 4 | $ 5 |
RJ Bank | ||
Derivative [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 6 | |
Maximum length of time hedged in cash flow hedge | 9 years |
DERIVATIVE ASSETS AND DERIVAT_4
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Asset and Liability Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Derivative assets | ||
Derivative assets | $ 235,554 | $ 374,503 |
Counterparty netting | (26,124) | (6,045) |
Cash collateral netting | (29,206) | (49,683) |
Total amounts offset | (55,330) | (55,728) |
Net amounts presented in the Statements of Financial Condition | 180,224 | 318,775 |
Financial instruments | (162,480) | (293,340) |
Net amount | 17,744 | 25,435 |
Derivative liabilities | ||
Derivative liabilities | 293,766 | 416,374 |
Counterparty netting | (26,124) | (6,045) |
Cash collateral netting | (20,729) | (53,365) |
Total amounts offset | (46,853) | (59,410) |
Derivative liability | 246,913 | 356,964 |
Financial instruments | (160,345) | (288,035) |
Net amount | 86,568 | 68,929 |
Notional amount | 10,877,557 | 10,060,526 |
Derivatives not designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 235,554 | 374,474 |
Derivative liabilities | ||
Derivative liabilities | 290,243 | 414,868 |
Notional amount | 9,135,994 | 8,161,880 |
Derivatives not designated as hedging instruments | Matched book | ||
Derivative assets | ||
Matched book | 160,345 | 288,035 |
Matched book | 160,345 | 288,035 |
Derivative liabilities | ||
Notional amount | 2,415,615 | 2,766,488 |
Derivatives not designated as hedging instruments | Other (1) | ||
Derivative assets | ||
Derivative assets | 74,068 | 86,436 |
Derivative liabilities | ||
Derivative liabilities | 112,864 | 100,503 |
Notional amount | 6,155,611 | 4,931,809 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative assets | ||
Derivative assets | 1,141 | 3 |
Derivative liabilities | ||
Derivative liabilities | 1,454 | 530 |
Notional amount | 549,188 | 437,783 |
Derivatives not designated as hedging instruments | Deutsche bank restricted stock derivative | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 15,580 | 25,800 |
Notional amount | 15,580 | 25,800 |
Derivatives designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 0 | 29 |
Derivative liabilities | ||
Derivative liabilities | 3,523 | 1,506 |
Notional amount | 1,741,563 | 1,898,646 |
Derivatives designated as hedging instruments | Interest rate contracts: | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 528 | 1,390 |
Notional amount | 850,000 | 850,000 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative assets | ||
Derivative assets | 0 | 29 |
Derivative liabilities | ||
Derivative liabilities | 2,995 | 116 |
Notional amount | 891,563 | 1,048,646 |
Recurring | ||
Derivative assets | ||
Total amounts offset | (55,330) | (55,728) |
Net amounts presented in the Statements of Financial Condition | 180,224 | 318,775 |
Derivative liabilities | ||
Derivative liability | 246,913 | 356,964 |
Recurring | Interest rate contracts: | ||
Derivative assets | ||
Matched book | 160,345 | 288,035 |
Total amounts offset | (55,330) | (55,728) |
Net amounts presented in the Statements of Financial Condition | 18,738 | 30,708 |
Matched book | 160,345 | 288,035 |
Derivative liabilities | ||
Total amounts offset | (46,853) | (59,410) |
Derivative liability | 66,539 | 42,483 |
Recurring | Deutsche bank restricted stock derivative | ||
Derivative liabilities | ||
Derivative liability | 15,580 | 25,800 |
Recurring | Not Designated as Hedging Instrument, Economic Hedge | Deutsche bank restricted stock derivative | ||
Derivative liabilities | ||
Other investments, share based compensation economic hedge | $ 12,000 | $ 19,000 |
DERIVATIVE ASSETS AND DERIVAT_5
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in unrealized gain/(loss) on cash flow hedges | $ 34,806 | $ 23,232 | $ (11,833) |
Total gains/(losses) recognized in AOCI, net of taxes | 62,577 | (3,049) | (18,554) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in unrealized gain/(loss) on cash flow hedges | 34,806 | 23,232 | (11,833) |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange contracts (net investment hedges) | $ 27,771 | $ (26,281) | $ (6,721) |
DERIVATIVE ASSETS AND DERIVAT_6
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Income Statement Location (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net trading profits | Interest rate contracts, other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | $ 6,018 | $ 7,895 | $ 2,819 |
Other revenues | Matched book | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | 104 | 36 | 92 |
Other revenues | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | 18,091 | (19,961) | (2,662) |
Compensation, commissions and benefits expense | Deutsche bank restricted stock derivative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | 8,192 | (5,648) | 2,457 |
Acquisition-related expenses | Deutsche bank restricted stock derivative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized during the | $ 0 | $ (2,383) | $ 0 |
DERIVATIVE ASSETS AND DERIVAT_7
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Risk (Details) $ in Thousands | Sep. 30, 2018USD ($)credit_rating_agency | Sep. 30, 2017USD ($) |
Derivative [Line Items] | ||
Debt, minimum number of agencies required to maintain an investment grade rating (or more) | credit_rating_agency | 1 | |
Derivative liabilities | $ 293,766 | $ 416,374 |
Credit Risk Contract | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 4,000 |
COLLATERALIZED AGREEMENTS AND_3
COLLATERALIZED AGREEMENTS AND FINANCINGS COLLATERALIZED AGREEMENTS AND FINANCINGS, Schedule of Offsetting Transactions (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Reverse repurchase agreements | ||
Gross amounts of recognized assets/liabilities | $ 372,603 | $ 404,462 |
Gross amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Consolidated Statements of Financial Condition | 372,603 | 404,462 |
Gross amounts not offset in the Consolidated Statements of Financial Condition | (372,603) | (404,462) |
Net amount | 0 | 0 |
Securities borrowed | ||
Gross amounts of recognized assets/liabilities | 255,280 | 138,319 |
Gross amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Consolidated Statements of Financial Condition | 255,280 | 138,319 |
Gross amounts not offset in the Consolidated Statements of Financial Condition | (247,860) | (134,304) |
Net amount | 7,420 | 4,015 |
Repurchase agreements | ||
Gross amounts of recognized assets/liabilities | 186,205 | 220,942 |
Gross amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Consolidated Statements of Financial Condition | 186,205 | 220,942 |
Gross amounts not offset in the Consolidated Statements of Financial Condition | (186,205) | (220,942) |
Net amount | 0 | 0 |
Securities loaned | ||
Gross amounts of recognized assets/liabilities | 422,785 | 383,953 |
Gross amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts presented in the Consolidated Statements of Financial Condition | 422,785 | 383,953 |
Gross amounts not offset in the Consolidated Statements of Financial Condition | (407,975) | (373,132) |
Net amount | $ 14,810 | $ 10,821 |
COLLATERALIZED AGREEMENTS AND_4
COLLATERALIZED AGREEMENTS AND FINANCINGS, Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Collateral Received that Can be Resold or Repledged [Abstract] | ||
Collateral we received that was available to be delivered or repledged | $ 3,165,127 | $ 3,030,736 |
Collateral that we delivered or repledged | $ 1,388,882 | $ 1,068,912 |
COLLATERALIZED AGREEMENTS AND_5
COLLATERALIZED AGREEMENTS AND FINANCINGS, Encumbered Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Financial instruments owned, at fair value, pledged to counterparties that: | ||
Had the right to deliver or repledge | $ 509,703 | $ 363,739 |
Did not have the right to deliver or repledge | 64,614 | 44,930 |
Bank loans, net pledged at FHLB and the Federal Reserve | $ 4,075,081 | $ 3,197,185 |
COLLATERALIZED AGREEMENTS AND_6
COLLATERALIZED AGREEMENTS AND FINANCINGS, Repurchase Agreements, Securities Lending Transactions & Repurchase-to-Maturity Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | $ 186,205 | $ 220,942 |
Total | 608,990 | 604,895 |
Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 102,140 | 107,284 |
Agency MBS and CMOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 84,065 | 113,658 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Equity securities | 422,785 | 383,953 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Financial assets sold under agreements to repurchase | 186,205 | 220,942 |
Total | 608,990 | 604,895 |
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 | 102,140 | 107,284 |
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 | 84,065 | 113,658 |
Overnight and continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Equity securities | 422,785 | 383,953 |
Up to 30 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 |
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 | 0 |
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 | 0 |
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, 2018USD ($)segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
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 | $ 163,926 | $ 70,316 | $ 214,286 | $ 119,519 | $ 45,988 |
Loans held for investment: | |||||
Total loans held for investment | 19,577,580 | 17,158,099 | 15,234,502 | 13,073,183 | 11,103,418 |
Net unearned income and deferred expenses | (20,656) | (31,178) | (40,675) | (32,424) | (37,533) |
Total loans held for investment, net | 19,556,924 | 17,126,921 | 15,193,827 | 13,040,759 | 11,065,885 |
Total loans held for sale and investment | 19,720,850 | 17,197,237 | 15,408,113 | 13,160,278 | 11,111,873 |
Allowance for loan losses | (202,750) | (190,442) | (197,378) | (172,257) | (147,574) |
Bank loans, net | $ 19,518,100 | $ 17,006,795 | $ 15,210,735 | $ 12,988,021 | $ 10,964,299 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
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 | $ 7,785,237 | $ 7,385,910 | $ 7,470,373 | $ 6,928,018 | $ 6,422,347 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 40.00% | 43.00% | 48.00% | 52.00% | 58.00% |
CRE construction loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 150,825 | $ 112,681 | $ 122,718 | $ 162,356 | $ 94,195 |
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 | $ 3,624,407 | $ 3,106,290 | $ 2,554,071 | $ 2,054,154 | $ 1,689,163 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 18.00% | 18.00% | 17.00% | 16.00% | 15.00% |
Tax-exempt loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 1,227,112 | $ 1,017,791 | $ 740,944 | $ 484,537 | $ 122,218 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 6.00% | 6.00% | 5.00% | 4.00% | 1.00% |
Residential mortgage loans | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 3,756,609 | $ 3,148,730 | $ 2,441,569 | $ 1,962,614 | $ 1,751,747 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 19.00% | 18.00% | 16.00% | 15.00% | 16.00% |
SBL | |||||
Loans held for investment: | |||||
Total loans held for investment | $ 3,033,390 | $ 2,386,697 | $ 1,904,827 | $ 1,481,504 | $ 1,023,748 |
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 15.00% | 14.00% | 12.00% | 11.00% | 9.00% |
Loans held for sale, net | |||||
Associated percentage of each major loan category in loan portfolios [Abstract] | |||||
Loans held for investment (in hundredths) | 1.00% | 0.00% | 1.00% | 1.00% | 0.00% |
BANK LOANS, NET, Originations,
BANK LOANS, NET, Originations, Purchases, and Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Gain resulting from sale of loans | $ 2,000 | $ 2,000 | $ 2,000 |
Bank loan loss provision | 20,481 | 12,987 | 28,167 |
Loans held for sale, net | |||
Payments for Origination and Purchases of Loans Held-for-sale [Abstract] | |||
Loans held for sale purchased or originated | 1,690,000 | 1,670,000 | 1,800,000 |
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Proceeds for sale of loans held for sale | 606,000 | 439,000 | 383,000 |
Loans held for investment | |||
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Bank loan loss provision | 20,481 | 12,987 | 28,167 |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 915,382 | 864,509 | 854,082 |
Sales | 212,752 | 341,196 | 172,968 |
Loans held for investment | C&I loans | |||
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Bank loan loss provision | 13,426 | 7,502 | 23,051 |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 467,534 | 536,627 | 457,503 |
Sales | 212,752 | 341,196 | 172,968 |
Loans held for investment | CRE loans | |||
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Bank loan loss provision | 5,240 | (172) | 5,997 |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 144,818 | 63,542 | 24,869 |
Sales | 0 | 0 | 0 |
Loans held for investment | Residential mortgage loans | |||
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Bank loan loss provision | (1,742) | 3,944 | 191 |
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 303,030 | 264,340 | 371,710 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | $ 19,577,580 | $ 17,158,099 | $ 15,234,502 | $ 13,073,183 | $ 11,103,418 |
Nonaccrual | 24,528 | 38,970 | |||
Performing nonaccrual loans | 11,000 | 18,000 | |||
C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 7,785,237 | 7,385,910 | 7,470,373 | 6,928,018 | 6,422,347 |
Nonaccrual | 1,558 | 5,221 | |||
CRE construction loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 150,825 | 112,681 | 122,718 | 162,356 | 94,195 |
Nonaccrual | 0 | 0 | |||
CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 3,624,407 | 3,106,290 | 2,554,071 | 2,054,154 | 1,689,163 |
Nonaccrual | 0 | 0 | |||
Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 1,227,112 | 1,017,791 | 740,944 | 484,537 | 122,218 |
Nonaccrual | 0 | 0 | |||
Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 3,730,906 | 3,122,272 | |||
Nonaccrual | 22,848 | 33,718 | |||
Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 25,703 | 26,458 | |||
Nonaccrual | 122 | 31 | |||
SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 3,033,390 | 2,386,697 | $ 1,904,827 | $ 1,481,504 | $ 1,023,748 |
Nonaccrual | 0 | 0 | |||
30-89 days and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 1,312 | 2,101 | |||
30-89 days and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
30-89 days and accruing | CRE construction loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
30-89 days and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
30-89 days and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
30-89 days and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 1,289 | 1,853 | |||
30-89 days and accruing | Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 23 | 248 | |||
30-89 days and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
90 days or more and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
90 days or more and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
90 days or more and accruing | CRE construction loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
90 days or more and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
90 days or more and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
90 days or more and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 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 loans held for investment | 0 | 0 | |||
90 days or more and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
Total past due and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 1,312 | 2,101 | |||
Total past due and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
Total past due and accruing | CRE construction loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
Total past due and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
Total past due and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
Total past due and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 1,289 | 1,853 | |||
Total past due and accruing | Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 23 | 248 | |||
Total past due and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 0 | 0 | |||
Current and accruing | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 19,551,740 | 17,117,028 | |||
Current and accruing | C&I loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 7,783,679 | 7,380,689 | |||
Current and accruing | CRE construction loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 150,825 | 112,681 | |||
Current and accruing | CRE loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 3,624,407 | 3,106,290 | |||
Current and accruing | Tax-exempt | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 1,227,112 | 1,017,791 | |||
Current and accruing | Residential mortgage - first mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 3,706,769 | 3,086,701 | |||
Current and accruing | Residential mortgage - Home equity loans/lines | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 25,558 | 26,179 | |||
Current and accruing | SBL | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total loans held for investment | 3,033,390 | 2,386,697 | |||
One-to-Four Family Residential Mortgage Loans | Residential mortgage loans | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Total past due and accruing | 12,000 | 18,000 | |||
Other assets | |||||
Analysis of payment status of loans held for investment [Abstract] | |||||
Other real estate owned | $ 3,000 | $ 5,000 |
BANK LOANS, NET, Summary of Imp
BANK LOANS, NET, Summary of Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | $ 15,229 | $ 29,198 | |
Impaired loans without allowance for loan losses, gross recorded investment | 14,658 | 16,737 | |
Total impaired loans, gross recorded investment | 29,887 | 45,935 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 19,728 | 37,260 | |
Impaired loans without allowance for loan losses, unpaid principal balance | 21,705 | 24,899 | |
Total impaired loans, unpaid principal balance | 41,433 | 62,159 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 1,592 | 4,467 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Average impaired loan balance | 36,826 | 62,079 | $ 74,140 |
C&I loans | |||
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | 0 | 5,221 | |
Impaired loans without allowance for loan losses, gross recorded investment | 1,558 | 0 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 0 | 6,160 | |
Impaired loans without allowance for loan losses, unpaid principal balance | 1,700 | 0 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 0 | 1,963 | |
Impaired loans without allowance for loan losses, allowance for losses | 0 | 0 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Average impaired loan balance | 4,048 | 17,540 | 18,112 |
Residential mortgage - first mortgage loans | |||
Gross recorded investment [Abstract] | |||
Impaired loans with allowance for loan losses, gross recorded investment | 15,229 | 23,977 | |
Impaired loans without allowance for loan losses, gross recorded investment | 13,100 | 16,737 | |
Unpaid principal balance [Abstract] | |||
Impaired loans with allowance for loan losses, unpaid principal balance | 19,728 | 31,100 | |
Impaired loans without allowance for loan losses, unpaid principal balance | 20,005 | 24,899 | |
Allowance for loan losses [Abstract] | |||
Impaired loans with allowance for loan losses, allowance for losses | 1,592 | 2,504 | |
Loan and Lease Receivables, Impaired [Abstract] | |||
Impaired loan, troubled debt restructurings | 21,000 | 27,000 | |
Average impaired loan balance | 32,778 | 43,845 | 51,554 |
CRE loans | |||
Loan and Lease Receivables, Impaired [Abstract] | |||
Average impaired loan balance | $ 0 | $ 694 | $ 4,474 |
BANK LOANS, NET, Credit Quality
BANK LOANS, NET, Credit Quality of Held for Investment Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 19,577,580 | $ 17,158,099 |
C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 7,785,237 | 7,385,910 |
CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 150,825 | 112,681 |
CRE loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,624,407 | 3,106,290 |
Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,227,112 | 1,017,791 |
Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,730,906 | 3,122,272 |
Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 25,703 | 26,458 |
SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,033,390 | 2,386,697 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 19,344,203 | 16,893,435 |
Pass | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 7,678,521 | 7,232,777 |
Pass | CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 139,696 | 112,681 |
Pass | CRE loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,547,382 | 3,048,847 |
Pass | Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 1,227,112 | 1,017,791 |
Pass | Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,692,524 | 3,068,290 |
Pass | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 25,578 | 26,352 |
Pass | SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3,033,390 | 2,386,697 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 111,262 | 129,821 |
Special mention | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 47,933 | 63,964 |
Special mention | CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 11,129 | 0 |
Special mention | CRE loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 44,151 | 57,315 |
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 | 8,046 | 8,467 |
Special mention | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 3 | 75 |
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 | 122,115 | 134,843 |
Substandard | C&I loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 58,783 | 89,169 |
Substandard | CRE construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Substandard | CRE loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 32,874 | 128 |
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 | 30,336 | 45,515 |
Substandard | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 122 | 31 |
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 loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | Tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | Residential mortgage - first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | Residential mortgage - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | 0 | 0 |
Doubtful | SBL | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held for investment | $ 0 | $ 0 |
BANK LOANS, NET, Allowance for
BANK LOANS, NET, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for loan losses | $ 20,481 | $ 12,987 | $ 28,167 |
Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 190,442 | 197,378 | 172,257 |
Provision/(benefit) for loan losses | 20,481 | 12,987 | 28,167 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (10,002) | (27,006) | (4,426) |
Recoveries | 2,324 | 6,354 | 1,417 |
Net (charge-offs)/recoveries | (7,678) | (20,652) | (3,009) |
Foreign exchange translation adjustment | (495) | 729 | (37) |
Balance at end of period | 202,750 | 190,442 | 197,378 |
C&I | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 119,901 | 137,701 | 117,623 |
Provision/(benefit) for loan losses | 13,426 | 7,502 | 23,051 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (9,587) | (26,088) | (2,956) |
Recoveries | 4 | 340 | 0 |
Net (charge-offs)/recoveries | (9,583) | (25,748) | (2,956) |
Foreign exchange translation adjustment | (349) | 446 | (17) |
Balance at end of period | 123,395 | 119,901 | 137,701 |
CRE construction | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 1,421 | 1,614 | 2,707 |
Provision/(benefit) for loan losses | 1,747 | (101) | (1,023) |
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 | (92) | (70) |
Balance at end of period | 3,168 | 1,421 | 1,614 |
CRE loans | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 41,749 | 36,533 | 30,486 |
Provision/(benefit) for loan losses | 5,240 | (172) | 5,997 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (32) | 0 | 0 |
Recoveries | 0 | 5,013 | 0 |
Net (charge-offs)/recoveries | (32) | 5,013 | 0 |
Foreign exchange translation adjustment | (146) | 375 | 50 |
Balance at end of period | 46,811 | 41,749 | 36,533 |
Tax-exempt | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 6,381 | 4,100 | 5,949 |
Provision/(benefit) for loan losses | 2,163 | 2,281 | (1,849) |
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 | 8,544 | 6,381 | 4,100 |
Residential mortgage loans | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 16,691 | 12,664 | 12,526 |
Provision/(benefit) for loan losses | (1,742) | 3,944 | 191 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (383) | (918) | (1,470) |
Recoveries | 2,320 | 1,001 | 1,417 |
Net (charge-offs)/recoveries | 1,937 | 83 | (53) |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | 16,886 | 16,691 | 12,664 |
SBL | Loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 4,299 | 4,766 | 2,966 |
Provision/(benefit) for loan losses | (353) | (467) | 1,800 |
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 | $ 3,946 | $ 4,299 | $ 4,766 |
BANK LOANS, NET, Allowance fo_2
BANK LOANS, NET, Allowance for Loan Losses, Loans Individually and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Recorded investment [Abstract] | |||||
Total loans held for investment | $ 19,577,580 | $ 17,158,099 | $ 15,234,502 | $ 13,073,183 | $ 11,103,418 |
Reserve for unfunded lending commitments [Abstract] | |||||
Reserve for unfunded lending commitments | 10,000 | 11,000 | |||
C&I loans | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 7,785,237 | 7,385,910 | 7,470,373 | 6,928,018 | 6,422,347 |
CRE construction | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 150,825 | 112,681 | 122,718 | 162,356 | 94,195 |
CRE loans | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 3,624,407 | 3,106,290 | 2,554,071 | 2,054,154 | 1,689,163 |
Tax-exempt | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 1,227,112 | 1,017,791 | 740,944 | 484,537 | 122,218 |
SBL | |||||
Recorded investment [Abstract] | |||||
Total loans held for investment | 3,033,390 | 2,386,697 | 1,904,827 | 1,481,504 | $ 1,023,748 |
Loans held for investment | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 1,601 | 4,469 | |||
Collectively evaluated for impairment | 201,149 | 185,973 | |||
Total allowance for loan losses | 202,750 | 190,442 | 197,378 | 172,257 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 36,153 | 52,589 | |||
Collectively evaluated for impairment | 19,541,427 | 17,105,510 | |||
Total loans held for investment | 19,577,580 | 17,158,099 | |||
Loans held for investment | C&I loans | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 1,963 | |||
Collectively evaluated for impairment | 123,395 | 117,938 | |||
Total allowance for loan losses | 123,395 | 119,901 | 137,701 | 117,623 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 1,558 | 5,221 | |||
Collectively evaluated for impairment | 7,783,679 | 7,380,689 | |||
Total loans held for investment | 7,785,237 | 7,385,910 | |||
Loans held for investment | CRE construction | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 3,168 | 1,421 | |||
Total allowance for loan losses | 3,168 | 1,421 | 1,614 | 2,707 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 150,825 | 112,681 | |||
Total loans held for investment | 150,825 | 112,681 | |||
Loans held for investment | CRE loans | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 46,811 | 41,749 | |||
Total allowance for loan losses | 46,811 | 41,749 | 36,533 | 30,486 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 3,624,407 | 3,106,290 | |||
Total loans held for investment | 3,624,407 | 3,106,290 | |||
Loans held for investment | Tax-exempt | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 8,544 | 6,381 | |||
Total allowance for loan losses | 8,544 | 6,381 | 4,100 | 5,949 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 1,227,112 | 1,017,791 | |||
Total loans held for investment | 1,227,112 | 1,017,791 | |||
Loans held for investment | Residential mortgage loans | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 1,601 | 2,506 | |||
Collectively evaluated for impairment | 15,285 | 14,185 | |||
Total allowance for loan losses | 16,886 | 16,691 | 12,664 | 12,526 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 34,595 | 47,368 | |||
Collectively evaluated for impairment | 3,722,014 | 3,101,362 | |||
Total loans held for investment | 3,756,609 | 3,148,730 | |||
Loans held for investment | SBL | |||||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 3,946 | 4,299 | |||
Total allowance for loan losses | 3,946 | 4,299 | $ 4,766 | $ 2,966 | |
Recorded investment [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 3,033,390 | 2,386,697 | |||
Total loans held for investment | $ 3,033,390 | $ 2,386,697 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Prepaid Expense and Other Assets [Abstract] | ||
Investments in company-owned life insurance policies | $ 605,289 | $ 504,108 |
Prepaid expenses | 98,914 | 96,059 |
Investment in FHLB stock | 52,187 | 52,187 |
Investment in FRB stock | 24,706 | 24,706 |
Prepaid compensation expense | 16,454 | 27,175 |
Guaranteed LIHTC Fund financing asset | 9,792 | 15,786 |
Business Combination, Indemnification Assets, Amount as of Acquisition Date | 4,095 | 26,160 |
All other | 32,879 | 34,244 |
Total other assets | 844,316 | 780,425 |
Cumulative face value of company-owned life insurance policies | 1,900,000 | |
Amount of liability related to the low-income housing tax credit fund financing asset | $ 10,000 | $ 16,000 |
VARIABLE INTEREST ENTITIES VARI
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES, Primary Beneficiary - Aggregate Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Private Equity Interests | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | $ 67,179 | $ 104,414 |
Aggregate liabilities | 5,084 | 3,851 |
LIHTC fund in which RJ Bank is an investor member | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 53,149 | 57,719 |
Aggregate liabilities | 257 | 1,055 |
Guaranteed LIHTC Fund | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 40,411 | 51,400 |
Aggregate liabilities | 3,110 | 2,872 |
Other LIHTC funds | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 17,493 | 7,418 |
Aggregate liabilities | 18,171 | 2,544 |
Restricted Stock Trust Fund | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 13,538 | 12,122 |
Aggregate liabilities | 13,538 | 12,122 |
Total VIEs - Primary Beneficiary | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 191,770 | 233,073 |
Aggregate liabilities | $ 40,160 | $ 22,444 |
VARIABLE INTEREST ENTITIES VA_2
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES, Primary Beneficiary - Carrying Value of Assets, Liabilities and Equity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Assets: | ||||
Cash and cash equivalents | $ 3,500,306 | $ 3,669,672 | $ 1,650,452 | $ 2,601,006 |
Cash segregated pursuant to regulations | 2,441,241 | 3,476,085 | ||
Other receivables | 582,918 | 652,769 | ||
Intercompany receivables | 934,420 | 873,272 | ||
Private equity investments | 147,158 | 198,779 | ||
Other assets | 844,316 | 780,425 | ||
Total assets | 37,412,924 | 34,883,456 | ||
Liabilities and equity: | ||||
Other payables | 458,884 | 567,045 | ||
Total liabilities | 30,960,578 | 29,190,105 | ||
Equity | 6,368,461 | 5,581,713 | ||
Noncontrolling interests | 83,885 | 111,638 | ||
Total equity | 6,452,346 | 5,693,351 | $ 5,062,976 | |
Total liabilities and equity | 37,412,924 | 34,883,456 | ||
Total VIEs - Primary Beneficiary | ||||
Assets: | ||||
Cash and cash equivalents | 3,830 | 2,052 | ||
Cash segregated pursuant to regulations | 3,020 | 4,590 | ||
Other receivables | 1,215 | 168 | ||
Intercompany receivables | 442 | 454 | ||
Private equity investments | 62,275 | 101,905 | ||
Investments in real estate partnerships held by consolidated variable interest entities | 107,405 | 111,743 | ||
Trust fund investment in RJF common stock | 13,536 | 12,120 | ||
Other assets | 47 | 41 | ||
Total assets | 191,770 | 233,073 | ||
Liabilities and equity: | ||||
Other payables | 26,628 | 9,667 | ||
Intercompany payables | 17,271 | 16,520 | ||
Total liabilities | 43,899 | 26,187 | ||
Equity | 70,066 | 101,445 | ||
Noncontrolling interests | 77,805 | 105,441 | ||
Total equity | 147,871 | 206,886 | ||
Total liabilities and equity | $ 191,770 | $ 233,073 |
VARIABLE INTEREST ENTITIES VA_3
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES, Not the Primary Beneficiary - Aggregate Assets, Liabilities Exposure to Loss (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Private Equity Interests | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 6,907,827 | $ 10,485,611 |
Aggregate liabilities | 154,301 | 174,354 |
Our risk of loss | 68,053 | 73,457 |
LIHTC funds | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 5,692,112 | 5,372,367 |
Aggregate liabilities | 1,912,110 | 2,134,600 |
Our risk of loss | 93,270 | 60,959 |
NMTC funds | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 13,878 | 30,297 |
Aggregate liabilities | 141 | 105 |
Our risk of loss | 7 | 9 |
Other | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 196,939 | 169,462 |
Aggregate liabilities | 113,344 | 88,615 |
Our risk of loss | 4,044 | 3,163 |
Total | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 12,810,756 | 16,057,737 |
Aggregate liabilities | 2,179,896 | 2,397,674 |
Our risk of loss | $ 165,374 | $ 137,588 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 1,060,622 | $ 935,739 | |
Less: Accumulated depreciation and amortization | (574,348) | (498,365) | |
Total property and equipment, net | 486,274 | 437,374 | |
Depreciation expense | 85,000 | 71,000 | $ 63,000 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 29,079 | 29,079 | |
Software, including development in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 417,390 | 345,734 | |
Buildings, leasehold and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 350,144 | 324,452 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 247,548 | 224,418 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 16,461 | $ 12,056 |
GOODWILL AND IDENTIFIABLE INT_3
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Schedule of Goodwill and Net Identifiable Intangible Asset Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 478,251 | $ 410,723 | $ 408,072 |
Identifiable intangible assets, net | 160,846 | 82,460 | $ 94,974 |
Total goodwill and identifiable intangible assets, net | $ 639,097 | $ 493,183 |
GOODWILL AND IDENTIFIABLE INT_4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | $ 410,723 | $ 408,072 |
Additions | 69,234 | |
Foreign currency translations | (1,706) | 2,651 |
Goodwill (end of the period) | 478,251 | 410,723 |
Private Client Group | ||
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | 276,713 | 275,521 |
Additions | 0 | |
Foreign currency translations | (837) | 1,192 |
Goodwill (end of the period) | 275,876 | 276,713 |
Capital Markets | ||
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | 134,010 | 132,551 |
Additions | 0 | |
Foreign currency translations | (869) | 1,459 |
Goodwill (end of the period) | 133,141 | 134,010 |
Asset Management | ||
Goodwill [Roll Forward] | ||
Goodwill (beginning of the period) | 0 | 0 |
Additions | 69,234 | |
Foreign currency translations | 0 | 0 |
Goodwill (end of the period) | $ 69,234 | $ 0 |
GOODWILL AND IDENTIFIABLE INT_5
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Quantitative Analysis of Goodwill (Details) | Jan. 01, 2018USD ($) | Sep. 30, 2018USD ($)reporting_unit | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2016USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Impairment losses | $ 0 | $ 0 | |||
Number of reporting units | reporting_unit | 2 | ||||
Goodwill | $ 478,251,000 | $ 410,723,000 | $ 408,072,000 | ||
Private Client Group | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Goodwill | 275,876,000 | 276,713,000 | 275,521,000 | ||
Capital Markets | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Goodwill | $ 133,141,000 | $ 134,010,000 | $ 132,551,000 | ||
Raymond James Ltd | Private Client Group | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Goodwill | $ 24,285,000 | ||||
Raymond James Ltd | Capital Markets | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Goodwill | $ 20,293,000 | ||||
Discount Rate | Income approach | Goodwill | Raymond James Ltd | Private Client Group | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | 0.143 | ||||
Discount Rate | Income approach | Goodwill | Raymond James Ltd | Capital Markets | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | 0.153 | ||||
Weighted Rate | Income approach | Goodwill | Raymond James Ltd | Private Client Group | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | 0.75 | ||||
Weighted Rate | Income approach | Goodwill | Raymond James Ltd | Capital Markets | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | 0.75 | ||||
Weighted Rate | Market approach | Goodwill | Raymond James Ltd | Private Client Group | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | 0.25 | ||||
Weighted Rate | Market approach | Goodwill | Raymond James Ltd | Capital Markets | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | 0.25 | ||||
Revenue Multiple | Market approach | Goodwill | Raymond James Ltd | Private Client Group | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | 1.2 | ||||
Revenue Multiple | Market approach | Goodwill | Raymond James Ltd | Capital Markets | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | 0.9 | ||||
Price Earnings Ratio Multiple | Market approach | Goodwill | Raymond James Ltd | Private Client Group | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | $ / shares | 13.8 | ||||
Price Earnings Ratio Multiple | Market approach | Goodwill | Raymond James Ltd | Capital Markets | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value measurement input rates | $ / shares | 14.2 | ||||
Scout Group | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Time period over which goodwill is recognized | 15 years |
GOODWILL AND IDENTIFIABLE INT_6
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Net Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets (beginning of the period) | $ 82,460 | $ 94,974 |
Additions | 92,290 | |
Amortization expense | (13,673) | (12,850) |
Foreign currency translations | (231) | 336 |
Intangible assets (beginning of the period) | 160,846 | 82,460 |
Private Client Group | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets (beginning of the period) | 47,026 | 52,936 |
Additions | 0 | |
Amortization expense | (5,929) | (6,001) |
Foreign currency translations | (52) | 91 |
Intangible assets (beginning of the period) | 41,045 | 47,026 |
Capital Markets | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets (beginning of the period) | 23,077 | 27,937 |
Additions | 0 | |
Amortization expense | (3,077) | (4,845) |
Foreign currency translations | 0 | (15) |
Intangible assets (beginning of the period) | 20,000 | 23,077 |
Asset Management | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets (beginning of the period) | 12,357 | 14,101 |
Additions | 92,290 | |
Amortization expense | (4,667) | (2,004) |
Foreign currency translations | (179) | 260 |
Intangible assets (beginning of the period) | $ 99,801 | $ 12,357 |
GOODWILL AND IDENTIFIABLE INT_7
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Schedule of Additions to Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Intangible Assets [Line Items] | |
Total intangible assets acquired | $ 92,290 |
Scout Investments, Inc. | |
Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | 40,290 |
Total intangible assets acquired | $ 92,290 |
Scout Investments, Inc. | Customer relationships | |
Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 13 years |
Finite-lived intangible assets acquired | $ 34,900 |
Scout Investments, Inc. | Trade name | |
Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 20 years |
Finite-lived intangible assets acquired | $ 3,590 |
Scout Investments, Inc. | Developed technology | |
Intangible Assets [Line Items] | |
Weighted average useful life (in years) | 10 years |
Finite-lived intangible assets acquired | $ 1,800 |
Customer relationships | Scout Investments, Inc. | |
Intangible Assets [Line Items] | |
Non-amortizing customer relationships | $ 52,000 |
GOODWILL AND IDENTIFIABLE INT_8
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Intangible Assets, by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | $ 209,387 | $ 118,923 |
Accumulated amortization, finite-lived intangible assets | (48,541) | (36,463) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 133,483 | 99,749 |
Accumulated amortization, finite-lived intangible assets | (39,855) | (31,098) |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 11,749 | 8,366 |
Accumulated amortization, finite-lived intangible assets | (3,588) | (2,076) |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 3,430 | 1,630 |
Accumulated amortization, finite-lived intangible assets | (1,189) | (706) |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 523 | 542 |
Accumulated amortization, finite-lived intangible assets | (179) | (131) |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 2,902 | 3,336 |
Accumulated amortization, finite-lived intangible assets | (1,998) | (1,551) |
Seller relationship agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 5,300 | 5,300 |
Accumulated amortization, finite-lived intangible assets | (1,732) | (901) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, indefinite-lived assets | 52,000 | 0 |
Accumulated amortization, indefinite-lived assets | $ 0 | $ 0 |
GOODWILL AND IDENTIFIABLE INT_9
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Projected Amortization Expense (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,019 | $ 13,596 |
2,020 | 12,817 |
2,021 | 12,063 |
2,022 | 11,456 |
2,023 | 10,409 |
Thereafter | 48,505 |
Total future amortization expense | $ 108,846 |
BANK DEPOSITS BANK DEPOSITS, Su
BANK DEPOSITS BANK DEPOSITS, Summary of Bank Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Bank deposits: | ||
Savings and money market accounts | $ 19,474,529 | $ 17,391,091 |
Certificates of deposit | 445,442 | 314,685 |
NOW accounts | 5,823 | 5,197 |
Demand deposits (non-interest-bearing) | 15,713 | 21,389 |
Total bank deposits | $ 19,941,507 | $ 17,732,362 |
Weighted-average rate [Abstract] | ||
Savings and money market accounts, weighted-average rate (in hundredths) | 0.54% | 0.14% |
Certificates of deposit, weighted-average rate (in hundredths) | 2.03% | 1.60% |
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) | 0.57% | 0.17% |
Related party deposit liabilities | $ 279,000 | $ 243,000 |
RJF parent cash deposited with RJ Bank | 277,000 | $ 192,000 |
Time deposit amount that exceeds FDIC insurance limit | $ 25,000 |
BANK DEPOSITS BANK DEPOSITS, Sc
BANK DEPOSITS BANK DEPOSITS, Schedule Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Scheduled maturities of certificates of deposit, denominations greater than or equal to $100,000 [Abstract] | ||
Three months or less | $ 29,611 | $ 8,704 |
Over three through six months | 19,714 | 4,692 |
Over six through twelve months | 37,911 | 34,005 |
Over one through two years | 65,051 | 38,713 |
Over two through three years | 21,200 | 48,082 |
Over three through four years | 43,654 | 21,819 |
Over four through five years | 64,552 | 50,805 |
Total certificates of deposit, denominations greater than or equal to 100,000 | 281,693 | 206,820 |
Scheduled maturities of certificates of deposit, denominations less than 100,000 [Abstract] | ||
Three months or less | 16,960 | 4,132 |
Over three through six months | 12,716 | 3,894 |
Over six through twelve months | 26,078 | 11,865 |
Over one through two years | 40,434 | 20,019 |
Over two through three years | 13,504 | 27,847 |
Over three through four years | 26,245 | 12,761 |
Over four through five years | 27,812 | 27,347 |
Total certificates of deposit, denominations less than 100,000 | $ 163,749 | $ 107,865 |
BANK DEPOSITS BANK DEPOSITS, _2
BANK DEPOSITS BANK DEPOSITS, Summary of Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |||
Certificates of deposit | $ 6,217 | $ 4,325 | $ 5,402 |
Money market, savings and NOW accounts | 59,340 | 12,859 | 4,816 |
Total interest expense on deposits | $ 65,557 | $ 17,184 | $ 10,218 |
OTHER BORROWINGS, Schedule of O
OTHER BORROWINGS, Schedule of Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Other Borrowings [Abstract] | ||
Total other borrowings | $ 899,059 | $ 1,514,012 |
Mortgage notes payable and other | ||
Other Borrowings [Abstract] | ||
Mortgage notes payable | 24,059 | 29,012 |
Secured Debt | ||
Other Borrowings [Abstract] | ||
Borrowings outstanding on lines of credit | 0 | 260,000 |
Unsecured Debt | ||
Other Borrowings [Abstract] | ||
Borrowings outstanding on lines of credit | 0 | 350,000 |
Federal Home Loan Bank Advances | ||
Other Borrowings [Abstract] | ||
Borrowings outstanding on lines of credit | $ 875,000 | $ 875,000 |
OTHER BORROWINGS OTHER BORROWIN
OTHER BORROWINGS OTHER BORROWINGS, Narrative (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
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 | $ 875,000,000 |
Federal Home Loan Bank Advances | FHLB Advance Maturing June 2020 | ||
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 | |
Interest rate (in hundredths) | 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 | 2.41% | 1.41% |
OTHER BORROWINGS, Schedule of F
OTHER BORROWINGS, Schedule of Fiscal Maturity of Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Other Borrowings | $ 899,059 | $ 1,514,012 |
Other Borrowings | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,019 | 5,222 | |
2,020 | 855,430 | |
2,021 | 30,748 | |
2,022 | 6,084 | |
2,023 | 1,575 | |
Thereafter | 0 | |
Other Borrowings | $ 899,059 |
SENIOR NOTES PAYABLE, Schedule
SENIOR NOTES PAYABLE, Schedule of Senior Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2018 | May 31, 2017 | Jul. 30, 2016 | Mar. 31, 2012 | |
Debt Instrument [Line Items] | |||||
Make-whole premium and unamortized debt issuance costs included in financial statements | $ 46,000 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 1,550,000 | $ 1,550,000 | |||
Unaccreted premium/(discount) | 11,905 | 11,610 | |||
Unamortized debt issuance costs | (13,066) | (11,974) | |||
Total senior notes payable | 1,548,839 | 1,549,636 | |||
Senior Notes | 5.625% senior notes, due 2024 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 250,000 | 250,000 | |||
Aggregate principal amount of the notes redeemed | $ 250,000 | ||||
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 | 3.625% senior notes, due 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 500,000 | 500,000 | |||
Aggregate principal amount of the notes redeemed | $ 500,000 | ||||
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 | 4.95% senior notes, due 2046 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 800,000 | $ 800,000 | |||
Aggregate principal amount of the notes redeemed | $ 500,000 | $ 300,000 | |||
Interest rate (in hundredths) | 4.95% | 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 | 4.95% senior notes, due 2042 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (in hundredths) | 6.90% | ||||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% | ||||
Senior Notes | 8.60% senior notes, due 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (in hundredths) | 8.60% | ||||
Percentage of principal amount of notes redeemed (in hundredths) | 100.00% |
INCOME TAXES, The Tax Act (Deta
INCOME TAXES, The Tax Act (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 24.50% | 35.00% | 35.00% |
Change in tax expense due to remeasurement as result of Tax Cuts and Jobs Act | $ 105 | ||
Change in deferred tax asset due to remeasurement as result of Tax Cuts and Jobs Act | 93 | ||
Estimated transition tax as result of Tax Cuts and Jobs Act | 10 | ||
Evaluation of deferred tax assets related to executive compensation as a result of the Tax Cuts and Jobs Act | $ 2 |
INCOME TAXES, Income Tax Alloca
INCOME TAXES, Income Tax Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Recorded in: | |||
Net income including noncontrolling interests | $ 453,960 | $ 289,111 | $ 271,293 |
Equity, arising from cash flow hedges recorded through other comprehensive income/(loss) | 14,768 | 14,239 | (7,252) |
Equity, arising from currency translations, net of the impact of net investment hedges recorded through other comprehensive income/(loss) | 10,135 | (7,427) | (3,525) |
Equity, arising from available-for-sale securities recorded through other comprehensive income/(loss) | (18,875) | 856 | (3,295) |
Equity, arising from excess tax benefits from share-based payments | 0 | 0 | (35,121) |
Total | $ 459,988 | $ 296,779 | $ 222,100 |
INCOME TAXES, Provision (Benefi
INCOME TAXES, Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current: | |||
Federal | $ 258,480 | $ 255,555 | $ 287,350 |
State and local | 64,507 | 37,553 | 32,101 |
Foreign | 14,424 | 7,620 | 10,640 |
Current provision (benefit) for income taxes | 337,411 | 300,728 | 330,091 |
Deferred: | |||
Federal | 120,870 | (11,316) | (51,383) |
State and local | (4,456) | (959) | (6,267) |
Foreign | 135 | 658 | (1,148) |
Deferred provision (benefit) for income taxes | 116,549 | (11,617) | (58,798) |
Provision for income taxes | $ 453,960 | $ 289,111 | $ 271,293 |
INCOME TAXES, Effective Income
INCOME TAXES, Effective Income Tax Reconciliation (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effective income tax rate reconciliation (as a percent): | |||
Provision calculated at statutory rate | 24.50% | 35.00% | 35.00% |
Impact of Tax Act | 8.10% | 0.00% | 0.00% |
State income tax, net of federal benefit | 3.90% | 2.70% | 1.70% |
Tax-exempt interest income | (0.60%) | (1.00%) | (0.90%) |
Excess tax benefits related to share-based compensation | (0.90%) | (2.50%) | (0.00%) |
Gains on company-owned life insurance policies which are not subject to tax | (0.70%) | (1.70%) | (1.10%) |
Federal tax credits | (0.70%) | (1.60%) | (1.00%) |
Other, net | 1.20% | 0.30% | 0.20% |
Total provision for income tax | 34.80% | 31.20% | 33.90% |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
U.S. and foreign components of income before income taxes [Abstract] | |||
U.S. | $ 1,261,537 | $ 918,343 | $ 776,722 |
Foreign | 43,340 | 9,635 | 35,222 |
Income including noncontrolling interests and before provision for income taxes | $ 1,304,877 | $ 927,978 | $ 811,944 |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||
Deferred compensation | $ 179,711 | $ 235,171 |
Allowances for loan losses and reserves for unfunded commitments | 52,801 | 74,909 |
Unrealized loss associated with foreign currency translations | 6,184 | 1,928 |
Unrealized loss associated with available-for-sale securities | 20,059 | 3,342 |
Accrued expenses | 36,200 | 41,545 |
Other | 11,073 | 13,665 |
Total gross deferred tax assets | 306,028 | 370,560 |
Less: valuation allowance | (10) | (9) |
Total deferred tax assets | 306,018 | 370,551 |
Deferred tax liabilities: | ||
Partnership investments | 5,920 | (6,326) |
Goodwill and identifiable intangible assets | (32,047) | (38,364) |
Property and equipment | (59,972) | (8,046) |
Other | (16,794) | (4,329) |
Total deferred tax liabilities | (102,893) | (57,065) |
Net deferred tax assets | 203,125 | 313,486 |
Cumulative amount of undistributed earnings attributable to foreign subsidiaries | 254,000 | |
Income tax receivable current | 6,000 | 102,000 |
Accrued income taxes, current | $ 50,000 | $ 23,000 |
INCOME TAXES, Unrecognized Tax
INCOME TAXES, Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax penalties and interest accrued | $ 5,000 | $ 3,000 | |
Changes in the liability for unrecognized tax benefits [Roll Forward] | |||
Uncertain tax positions beginning of year | 20,006 | 22,173 | $ 22,454 |
Increases for tax positions related to the current year | 5,119 | 3,238 | 6,496 |
Increases for tax positions related to prior years | 10,065 | 438 | 1,284 |
Decreases for tax positions related to prior years | (1,177) | (717) | (1,592) |
Decreases due to lapsed statute of limitations | (2,862) | (2,497) | (1,447) |
Decreases related to settlements | (371) | (2,629) | (5,022) |
Uncertain tax positions end of year | 30,780 | 20,006 | 22,173 |
Unrecognized tax benefits that would impact effective tax rate | 27,000 | $ 15,000 | $ 16,000 |
Anticipated decrease in uncertain tax positions over the next 12 months | $ 5,000 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018USD ($)commitment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Underwriting commitment | |||
Commitments [Line Items] | |||
Number of open underwriting commitments | commitment | 7 | ||
Loans to financial advisors and certain key revenue producers, not yet accepted | |||
Commitments [Line Items] | |||
Amount of commitment | $ 140 | ||
Unfunded loans to financial advisors and certain key revenue producers, accepted | |||
Commitments [Line Items] | |||
Amount of commitment | 88 | ||
Commitment to lend to RJTCF | |||
Commitments [Line Items] | |||
Amount of commitment | 225 | ||
Cash funded to invest in loans or investments in project partnerships | $ 81 | ||
Number of days that investments in project partnerships are typically sold (in days) | 90 days | ||
Independent venture capital or private equity investment commitment | |||
Commitments [Line Items] | |||
Amount of commitment | $ 18 | ||
Lease agreements commitments | |||
Commitments [Line Items] | |||
Rental expense incurred under leases | 121 | $ 115 | $ 97 |
Forward GNMA MBS purchase commitments | |||
Commitments [Line Items] | |||
Amount of commitment | $ 491 | ||
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 | $ 62 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Summary of Off-Balance Sheet Risks (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Open-end consumer lines of credit (primarily SBL) | $ 7,331,544 | $ 5,323,003 |
Commercial lines of credit | 1,643,213 | 1,673,272 |
Unfunded loan commitments | 540,596 | 386,950 |
Standby letters of credit | $ 41,260 | $ 39,670 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Long-term Lease Agreement Maturities (Details) - Lease agreements commitments $ in Thousands | Sep. 30, 2018USD ($) |
Operating Leases Fiscal Year Maturity: | |
2,018 | $ 95,556 |
2,019 | 83,591 |
2,020 | 70,487 |
2,021 | 51,426 |
2,022 | 39,544 |
Thereafter | 70,160 |
Total operating lease obligation | $ 410,764 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Guarantor Obligations (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Guarantees [Abstract] | ||
Low-income housing tax credit fund financing asset | $ 9,792,000 | $ 15,786,000 |
Amount of liability related to the low-income housing tax credit fund financing asset | 10,000,000 | $ 16,000,000 |
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 | $ 10,000,000 | |
Number of years under the guarantee to deliver a certain amount of tax credits and other tax benefits (in years) | 4 years | |
Private equity investments | Guarantee of debt | ||
Guarantees [Abstract] | ||
Guarantor obligation, maximum exposure | $ 15,000,000 |
COMMITMENTS, CONTINGENCIES AN_7
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Loss Contingencies (Details) $ in Millions | Sep. 30, 2018USD ($) |
Pending Litigation | Various Lawsuits | |
Loss Contingencies [Line Items] | |
Estimate range of possible loss, portion not accrued | $ 150 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS), Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 | $ (43,221) | $ 1,684 | $ (5,576) |
Net change in unrealized gain/(loss) on currency translations, net of the impact of net investment hedges | (3,315) | 15,618 | 2,179 |
Net change in unrealized gain/(loss) on cash flow hedges | 34,806 | 23,232 | (11,833) |
Net other comprehensive income/(loss) for the year, net of tax | $ (11,730) | $ 40,534 | $ (15,230) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS), AOCI Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | $ 5,581,713 | ||
Net other comprehensive income/(loss) for the year, net of tax | (11,730) | $ 40,534 | $ (15,230) |
Accumulated other comprehensive income (loss) as of year end | 6,368,461 | 5,581,713 | |
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 | 60,201 | 86,482 | |
Other comprehensive income/(loss) before reclassifications and taxes | 37,853 | (41,997) | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 0 | 0 | |
Pre-tax net other comprehensive income/(loss) | 37,853 | (41,997) | |
Income tax effect | (10,135) | 15,716 | |
Reclassification of tax effects related to the Tax Act | 53 | ||
Net other comprehensive income/(loss) for the year, net of tax | 27,771 | (26,281) | |
Accumulated other comprehensive income (loss) as of year end | 87,972 | 60,201 | 86,482 |
Currency translations | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) as of the beginning of the year | (79,677) | (121,576) | |
Other comprehensive income/(loss) before reclassifications and taxes | (31,086) | 43,541 | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 0 | 6,647 | |
Pre-tax net other comprehensive income/(loss) | (31,086) | 50,188 | |
Income tax effect | 0 | (8,289) | |
Reclassification of tax effects related to the Tax Act | 0 | ||
Net other comprehensive income/(loss) for the year, net of tax | (31,086) | 41,899 | |
Accumulated other comprehensive income (loss) as of year end | (110,763) | (79,677) | (121,576) |
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 | (19,476) | (35,094) | |
Other comprehensive income/(loss) before reclassifications and taxes | 6,767 | 1,544 | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 0 | 6,647 | |
Pre-tax net other comprehensive income/(loss) | 6,767 | 8,191 | |
Income tax effect | (10,135) | 7,427 | |
Reclassification of tax effects related to the Tax Act | 53 | ||
Net other comprehensive income/(loss) for the year, net of tax | (3,315) | 15,618 | |
Accumulated other comprehensive income (loss) as of year end | (22,791) | (19,476) | (35,094) |
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 | (2,472) | (4,156) | |
Other comprehensive income/(loss) before reclassifications and taxes | (55,480) | 443 | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | (4,684) | 2,097 | |
Pre-tax net other comprehensive income/(loss) | (60,164) | 2,540 | |
Income tax effect | 18,875 | (856) | |
Reclassification of tax effects related to the Tax Act | (1,932) | ||
Net other comprehensive income/(loss) for the year, net of tax | (43,221) | 1,684 | |
Accumulated other comprehensive income (loss) as of year end | (45,693) | (2,472) | (4,156) |
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 | 6,749 | (16,483) | |
Other comprehensive income/(loss) before reclassifications and taxes | 46,680 | 31,843 | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | 657 | 5,628 | |
Pre-tax net other comprehensive income/(loss) | 47,337 | 37,471 | |
Income tax effect | (14,768) | (14,239) | |
Reclassification of tax effects related to the Tax Act | 2,237 | ||
Net other comprehensive income/(loss) for the year, net of tax | 34,806 | 23,232 | |
Accumulated other comprehensive income (loss) as of year end | 41,555 | 6,749 | (16,483) |
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 | (15,199) | (55,733) | |
Other comprehensive income/(loss) before reclassifications and taxes | (2,033) | 33,830 | |
Amounts reclassified from accumulated other comprehensive income/(loss), before tax | (4,027) | 14,372 | |
Pre-tax net other comprehensive income/(loss) | (6,060) | 48,202 | |
Income tax effect | (6,028) | (7,668) | |
Reclassification of tax effects related to the Tax Act | 358 | ||
Net other comprehensive income/(loss) for the year, net of tax | (11,730) | 40,534 | |
Accumulated other comprehensive income (loss) as of year end | $ (26,929) | $ (15,199) | $ (55,733) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS), Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Available-for-sale securities | $ (74,609) | $ (91,021) | $ (81,690) |
Interest expense | 201,503 | 153,778 | 116,056 |
Other expense | 307,978 | 402,724 | 244,096 |
Provision for income taxes | 453,960 | 289,111 | 271,293 |
Net income attributable to Raymond James Financial, Inc. | (856,695) | (636,235) | $ (529,350) |
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. | (2,909) | ||
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 | (4,684) | 1,458 | |
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 | ||
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 | (4,027) | 14,372 | |
Provision for income taxes | 1,118 | (5,460) | |
Net income attributable to Raymond James Financial, Inc. | 8,912 | ||
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 | $ 657 | $ 5,628 |
INTEREST INCOME AND INTEREST _3
INTEREST INCOME AND INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income: | |||
Cash segregated pursuant to regulations | $ 52,561 | $ 37,270 | $ 22,287 |
Securities loaned | 14,548 | 14,049 | 8,777 |
Trading instruments | 23,016 | 21,068 | 19,362 |
Available-for-sale securities | 52,420 | 27,946 | 7,596 |
Margin loans | 107,201 | 85,699 | 68,712 |
Bank loans, net of unearned income | 722,339 | 572,171 | 487,366 |
Loans to financial advisors | 15,078 | 13,333 | 8,207 |
Corporate cash and all other | 56,830 | 30,590 | 18,090 |
Total interest income | 1,043,993 | 802,126 | 640,397 |
Interest expense: | |||
Bank deposits | 65,557 | 17,184 | 10,218 |
Securities borrowed | 7,630 | 6,690 | 3,174 |
Trading instruments sold but not yet purchased | 7,344 | 6,138 | 5,035 |
Brokerage client payables | 15,367 | 4,884 | 2,084 |
Other borrowings | 22,006 | 16,559 | 12,957 |
Senior notes payable | 72,708 | 94,665 | 78,533 |
Other | 10,891 | 7,658 | 4,055 |
Total interest expense | 201,503 | 153,778 | 116,056 |
Net interest income | 842,490 | 648,348 | 524,341 |
Bank loan loss provision | (20,481) | (12,987) | (28,167) |
Net interest income after bank loan loss provision | $ 822,009 | $ 635,361 | $ 496,174 |
SHARE-BASED AND OTHER COMPENS_3
SHARE-BASED AND OTHER COMPENSATION, ESOP (Details) - USD ($) shares in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Award requisite service period | 5 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) | 4,611 | 4,690 |
Market value of common stock held by the ESOP | $ 424,000,000 | |
Value of unearned (not yet vested) shares held by ESOP plan participants | $ 5,000,000 |
SHARE-BASED AND OTHER COMPENS_4
SHARE-BASED AND OTHER COMPENSATION, Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Retirement Benefits [Abstract] | |||
Compensation Expense | $ 154 | $ 131 | $ 117 |
SHARE-BASED AND OTHER COMPENS_5
SHARE-BASED AND OTHER COMPENSATION, 2012 Stock Incentive Plan (Details) | Sep. 30, 2018planshares |
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 COMPENS_6
SHARE-BASED AND OTHER COMPENSATION, Stock Option Awards (Details) - 2012 Stock Incentive Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 | $ 10,000 | ||
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 | $ 1,000 | ||
Granted (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield (in hundredths) | 1.03% | 1.41% | |
Expected volatility (in hundredths) | 30.91% | 28.85% | |
Risk-free interest rate (in hundredths) | 1.81% | 1.65% | |
Expected lives (in years) | 5 years 4 months 10 days | 5 years 4 months 14 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 | $ 9,780 | $ 13,597 | $ 11,648 |
Income tax benefit related to share-based expense | $ 861 | $ 1,783 | $ 1,181 |
SHARE-BASED AND OTHER COMPENS_7
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Options | |||
Options for shares (in shares): | |||
Outstanding - beginning of period (in shares) | 2,836 | ||
Exercised (in shares) | (739) | ||
Forfeited (in shares) | (70) | ||
Outstanding - end of period (in shares) | 2,027 | 2,836 | |
Weighted-average exercise price (in dollars per share): | |||
Outstanding - beginning of period (in dollars per share) | $ 51.63 | ||
Exercised (in dollars per share) | 46.65 | ||
Forfeited (in dollars per share) | 53.24 | ||
Outstanding - end of period (in dollars per share) | $ 53.35 | $ 51.63 | |
Weighted-average remaining contractual term (in years) | 2 years 10 months 24 days | ||
Aggregated intrinsic value | $ 78,438 | ||
Exercisable, outstanding (in shares) | 728 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 47.85 | ||
Exercisable, weighted average remaining contractual term (in years) | 2 years 2 months 12 days | ||
Exercisable, aggregate intrinsic value | $ 32,195 | ||
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 | |
Total intrinsic value of stock options exercised | 31,797 | $ 42,178 | $ 16,273 |
Total grant date fair value of stock options vested | 14,054 | $ 10,768 | $ 7,690 |
Pre-tax expense note yet recognized [Abstract] | |||
Cash received from stock option exercises | 34,000 | ||
Employees | Stock Options | |||
Pre-tax expense note yet recognized [Abstract] | |||
Nonvested awards, compensation cost not yet recognized | $ 7,449 | ||
Remaining weighted-average period (in years) | 2 years | ||
Independent contractor financial advisors | Nonemployee Stock Option | |||
Pre-tax expense note yet recognized [Abstract] | |||
Nonvested awards, compensation cost not yet recognized | $ 3,373 | ||
Remaining weighted-average period (in years) | 3 years 1 month 6 days |
SHARE-BASED AND OTHER COMPENS_8
SHARE-BASED AND OTHER COMPENSATION, Restricted Stock Award (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 | $ 10,000,000 | ||
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) | 4,744,000 | ||
Granted (in shares) | 1,225,000 | ||
Vested (in shares) | (1,089,000) | ||
Forfeited (in shares) | (97,000) | ||
Nonvested - end of period (in shares) | 4,783,000 | 4,744,000 | |
Weighted-average grant date fair value (in dollars per share): | |||
Nonvested - beginning of period (in dollars per share) | $ 58.94 | ||
Granted (in dollars per share) | 87.33 | ||
Vested (in dollars per share) | 49.02 | ||
Forfeited (in dollars per share) | 64.31 | ||
Nonvested - end of period (in dollars per share) | $ 68.39 | $ 58.94 | |
Total share-based expense | $ 88,602,000 | $ 78,624,000 | $ 62,674,000 |
Income tax benefits related to share-based expense | 23,244,000 | 27,658,000 | 21,979,000 |
Unrecognized pre-tax expense | $ 140,000,000 | ||
Weighted-average period of recognition (in years) | 3 years 1 day | ||
Total fair value of shares vested under the plan | $ 51,000,000 | ||
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 | $ 9,780,000 | 13,597,000 | $ 11,648,000 |
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 | ||
Acquisition-related expenses | |||
Weighted-average grant date fair value (in dollars per share): | |||
Total share-based expense | $ 5,000,000 |
SHARE-BASED AND OTHER COMPENS_9
SHARE-BASED AND OTHER COMPENSATION, Deutsche Bank Restricted Stock Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 06, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Prepaid compensation expense | $ 16,454 | $ 27,175 | ||
Derivative liability | $ 293,766 | $ 416,374 | ||
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) | $ 11.36 | $ 14.90 | ||
Prepaid compensation expense | $ 5,000 | |||
Shares/Units (in shares): | ||||
Nonvested - beginning of period (in shares) | 1,493 | |||
Vested (in shares) | (77) | |||
Forfeited (in shares) | (44) | |||
Nonvested - end of period (in shares) | 1,372 | 1,493 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Income tax benefit/(expense) | $ 1,438 | $ (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 | 1 year 1 month 6 days | |||
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 | $ 4,624 | 5,270 | 355 | |
Increase/(decrease) in fair value of derivative liability | (8,192) | 8,031 | (2,457) | |
Net expense/(gain) before tax | (3,568) | 13,301 | (2,102) | |
Derivatives not designated as hedging instruments | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative liability | 290,243 | 414,868 | ||
Derivatives not designated as hedging instruments | Deutsche bank restricted stock derivative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Derivative liability | 15,580 | 25,800 | ||
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 | $ (8,192) | $ 5,648 | $ (2,457) |
SHARE-BASED AND OTHER COMPEN_10
SHARE-BASED AND OTHER COMPENSATION, Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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) | 336,000 | 343,000 | 557,000 |
Discount from market value (in hundredths) | 15.00% | ||
Total share-based expense | $ 5,000,000 | $ 4,000,000 | $ 4,000,000 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
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 | |
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% | |
Threshold percentage of Aggregate Debit Items for net capital, at which a member firm may be required to reduce its business | 4.00% | |
Threshold percentage of Aggregate Debit Items for net capital, at which a member firm may be prohibited from expanding its business and declaring cash dividends | 5.00% | |
Raymond James Financial Inc | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) [Abstract] | ||
Actual, amount | $ 5,717,748 | $ 5,081,335 |
Actual, ratio (in hundredths) | 24.30% | 23.00% |
Requirement for capital adequacy purposes, amount | $ 1,057,404 | $ 994,950 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 1,527,362 | $ 1,437,150 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% |
Tier I Capital (to Risk-Weighted Assets) [Abstract] | ||
Actual, amount | $ 5,717,748 | $ 5,081,335 |
Actual, ratio (in hundredths) | 24.30% | 23.00% |
Requirement for capital adequacy purposes, amount | $ 1,409,872 | $ 1,326,600 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% |
To be well capitalized under regulatory provisions, amount | $ 1,879,830 | $ 1,768,800 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 8.00% | 8.00% |
Total Capital (to risk-weighted assets) [Abstract] | ||
Actual, amount | $ 5,940,703 | $ 5,293,331 |
Actual ratio (in hundredths) | 25.30% | 23.90% |
Requirement for capital adequacy purposes, amount | $ 1,879,830 | $ 1,768,800 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% |
To be well capitalized under regulatory provisions, amount | $ 2,349,787 | $ 2,211,000 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% |
Tier I Leverage [Abstract] | ||
Actual, amount | $ 5,717,748 | $ 5,081,335 |
Actual, ratio (in hundredths) | 15.80% | 15.00% |
Requirement for capital adequacy purposes, amount | $ 1,451,360 | $ 1,359,168 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% |
To be well capitalized under regulatory provisions, amount | $ 1,814,200 | $ 1,698,960 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 5.00% | 5.00% |
RJ Bank | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) [Abstract] | ||
Actual, amount | $ 2,028,525 | $ 1,821,306 |
Actual, ratio (in hundredths) | 12.70% | 12.50% |
Requirement for capital adequacy purposes, amount | $ 721,112 | $ 654,901 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.50% | 4.50% |
To be well capitalized under regulatory provisions, amount | $ 1,041,607 | $ 945,968 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 6.50% | 6.50% |
Tier I Capital (to Risk-Weighted Assets) [Abstract] | ||
Actual, amount | $ 2,028,525 | $ 1,821,306 |
Actual, ratio (in hundredths) | 12.70% | 12.50% |
Requirement for capital adequacy purposes, amount | $ 961,483 | $ 873,201 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 6.00% | 6.00% |
To be well capitalized under regulatory provisions, amount | $ 1,281,978 | $ 1,164,268 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 8.00% | 8.00% |
Total Capital (to risk-weighted assets) [Abstract] | ||
Actual, amount | $ 2,228,986 | $ 2,003,461 |
Actual ratio (in hundredths) | 13.90% | 13.80% |
Requirement for capital adequacy purposes, amount | $ 1,281,978 | $ 1,164,268 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 8.00% | 8.00% |
To be well capitalized under regulatory provisions, amount | $ 1,602,472 | $ 1,455,335 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 10.00% | 10.00% |
Tier I Leverage [Abstract] | ||
Actual, amount | $ 2,028,525 | $ 1,821,306 |
Actual, ratio (in hundredths) | 8.80% | 8.90% |
Requirement for capital adequacy purposes, amount | $ 926,390 | $ 816,304 |
Requirement for capital adequacy purposes, ratio (in hundredths) | 4.00% | 4.00% |
To be well capitalized under regulatory provisions, amount | $ 1,157,987 | $ 1,020,379 |
To be well capitalized under regulatory provisions, ratio (in hundredths) | 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 | 33,393 | $ 34,488 |
Less: required net capital | (250) | (250) |
Excess net capital | $ 33,143 | $ 34,238 |
Raymond James and Associates Inc | ||
Alternative Method Elected [Abstract] | ||
Net capital as a percent of aggregate debit items (in hundredths) | 28.22% | 21.37% |
Net capital | $ 934,612 | $ 589,420 |
Less: required net capital | (66,239) | (55,164) |
Excess net capital | $ 868,373 | $ 534,256 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS, Risk Adjusted Capital (Details) - Raymond James Ltd - CAD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Risk adjusted capital before minimum | $ 106,160 | $ 108,985 |
Less: required minimum capital | (250) | (250) |
Risk adjusted capital | $ 105,910 | $ 108,735 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income for basic earnings per common share: | |||
Net income attributable to Raymond James Financial, Inc. | $ 856,695 | $ 636,235 | $ 529,350 |
Less allocation of earnings and dividends to participating securities | (1,463) | (1,376) | (1,256) |
Net income attributable to RJF common shareholders | 855,232 | 634,859 | 528,094 |
Income for diluted earnings per common share: | |||
Net income attributable to Raymond James Financial, Inc. | 856,695 | 636,235 | 529,350 |
Less allocation of earnings and dividends to participating securities | (1,433) | (1,350) | (1,236) |
Net income attributable to RJF common shareholders | $ 855,262 | $ 634,885 | $ 528,114 |
Common shares: | |||
Average common shares in basic computation (in shares) | 145,271 | 143,275 | 141,773 |
Dilutive effect of outstanding stock options and certain restricted stock units (in shares) | 3,567 | 3,372 | 2,740 |
Average common shares used in diluted computation (in shares) | 148,838 | 146,647 | 144,513 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 5.89 | $ 4.43 | $ 3.72 |
Diluted (in dollars per share) | $ 5.75 | $ 4.33 | $ 3.65 |
Stock options and certain restricted stock units excluded from weighted-average diluted common shares because their effect would be antidilutive (in shares) | 527 | 1,657 | 3,255 |
Participating securities [Abstract] | |||
Participating securities (in shares) | 254 | 317 | 346 |
Dividends per common share declared and paid [Abstract] | |||
Dividends per common share - declared (in dollars per share) | $ 1.10 | $ 0.88 | $ 0.80 |
Dividends per common share - paid (in dollars per share) | $ 1.02 | $ 0.86 | $ 0.78 |
SEGMENT INFORMATION, Informatio
SEGMENT INFORMATION, Information Concerning Operations (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Segment Reporting Information, Additional Information: | |||
Number of operating segments | segment | 5 | ||
Revenues: | |||
Total revenues | $ 7,475,821 | $ 6,524,875 | $ 5,521,120 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 1,310,655 | 925,346 | 800,643 |
Net income/(loss) attributable to noncontrolling interests | (5,778) | 2,632 | 11,301 |
Income including noncontrolling interests and before provision for income taxes | 1,304,877 | 927,978 | 811,944 |
Net interest income (expense): | |||
Net interest income | 842,490 | 648,348 | 524,341 |
Total assets: | |||
Total assets | 37,412,924 | 34,883,456 | |
Goodwill and Intangible Assets: | |||
Goodwill | 478,251 | 410,723 | 408,072 |
Private Client Group | |||
Goodwill and Intangible Assets: | |||
Goodwill | 275,876 | 276,713 | 275,521 |
Capital Markets | |||
Goodwill and Intangible Assets: | |||
Goodwill | 133,141 | 134,010 | 132,551 |
Asset Management | |||
Goodwill and Intangible Assets: | |||
Goodwill | 69,234 | 0 | 0 |
Operating Segments | Private Client Group | |||
Revenues: | |||
Total revenues | 5,120,831 | 4,437,588 | 3,626,718 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 576,094 | 372,950 | 340,564 |
Net interest income (expense): | |||
Net interest income | 165,304 | 136,756 | 97,042 |
Total assets: | |||
Total assets | 10,173,186 | 9,967,320 | |
Operating Segments | Capital Markets | |||
Revenues: | |||
Total revenues | 991,604 | 1,034,235 | 1,017,151 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 90,647 | 141,236 | 139,173 |
Net interest income (expense): | |||
Net interest income | 4,422 | 6,543 | 9,432 |
Total assets: | |||
Total assets | 2,278,977 | 2,396,033 | |
Operating Segments | Asset Management | |||
Revenues: | |||
Total revenues | 654,418 | 487,735 | 404,421 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 235,336 | 171,736 | 132,158 |
Net interest income (expense): | |||
Net interest income | 1,974 | 623 | 183 |
Total assets: | |||
Total assets | 386,810 | 151,111 | |
Operating Segments | RJ Bank | |||
Revenues: | |||
Total revenues | 815,284 | 627,845 | 517,243 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | 491,779 | 409,303 | 337,296 |
Net interest income (expense): | |||
Net interest income | 704,361 | 574,796 | 478,690 |
Total assets: | |||
Total assets | 22,922,355 | 20,611,898 | |
Operating Segments | Other | |||
Revenues: | |||
Total revenues | 59,992 | 65,498 | 46,291 |
Income/(loss) excluding noncontrolling interests and before provision for income taxes: | |||
Pre-tax income excluding noncontrolling interests | (83,201) | (169,879) | (148,548) |
Net interest income (expense): | |||
Net interest income | (33,571) | (70,370) | (61,006) |
Total assets: | |||
Total assets | 1,651,596 | 1,757,094 | |
Intersegment eliminations | |||
Revenues: | |||
Total revenues | $ (166,308) | $ (128,026) | $ (90,704) |
SEGMENT INFORMATION, Classified
SEGMENT INFORMATION, Classified by Major Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | |||
Total revenues | $ 7,475,821 | $ 6,524,875 | $ 5,521,120 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 1,310,655 | 925,346 | 800,643 |
Total assets: | |||
Total assets | 37,412,924 | 34,883,456 | |
Goodwill and Intangible Assets: | |||
Goodwill | 478,251 | 410,723 | 408,072 |
U.S. | |||
Revenues: | |||
Total revenues | 6,914,117 | 6,057,971 | 5,119,536 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 1,268,769 | 919,324 | 778,351 |
Total assets: | |||
Total assets | 34,650,260 | 32,200,852 | |
Goodwill and Intangible Assets: | |||
Goodwill | 426,000 | 356,000 | |
Canada | |||
Revenues: | |||
Total revenues | 422,598 | 354,685 | 278,652 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 47,403 | 14,138 | 20,243 |
Total assets: | |||
Total assets | 2,673,452 | 2,592,480 | |
Goodwill and Intangible Assets: | |||
Goodwill | 43,000 | 45,000 | |
Europe | |||
Revenues: | |||
Total revenues | 139,106 | 107,831 | 85,718 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | (5,517) | (3,577) | (3,791) |
Total assets: | |||
Total assets | 89,148 | 81,090 | |
Goodwill and Intangible Assets: | |||
Goodwill | 9,000 | 10,000 | |
Other | |||
Revenues: | |||
Total revenues | 0 | 4,388 | 37,214 |
Pre-tax income excluding noncontrolling interests: | |||
Total before tax | 0 | (4,539) | $ 5,840 |
Total assets: | |||
Total assets | $ 64 | $ 9,034 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||
RJF parent cash deposited with RJ Bank | $ 277 | $ 192 |
Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net assets restricted from being transferred to Parent | 2,810 | |
RJF Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Unrestricted cash and cash equivalents available to Parent | 1,400 | 1,290 |
RJF parent cash deposited with RJ Bank | 277 | 192 |
RJF parent cash deposited with RJ bank, unrestricted | $ 254 | $ 152 |
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 INFORMATI_4
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Financial Condition (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Assets: | ||||
Cash and cash equivalents | $ 3,500,306 | $ 3,669,672 | $ 1,650,452 | $ 2,601,006 |
Assets segregated pursuant to regulations | 2,441,241 | 3,476,085 | ||
Investments in consolidated subsidiaries: | ||||
Property and equipment, net | 486,274 | 437,374 | ||
Goodwill and identifiable intangible assets, net | 639,097 | 493,183 | ||
Other assets | 32,879 | 34,244 | ||
Total assets | 37,412,924 | 34,883,456 | ||
Liabilities and equity: | ||||
Other payables | 458,884 | 567,045 | ||
Accrued compensation and benefits | 1,189,485 | 1,059,996 | ||
Total liabilities | 30,960,578 | 29,190,105 | ||
Equity | 6,368,461 | 5,581,713 | ||
Total liabilities and equity | 37,412,924 | 34,883,456 | ||
Invested cash and cash equivalents by subsidiaries on behalf of Parent | 735,000 | 783,000 | ||
RJF Parent Company | ||||
Assets: | ||||
Cash and cash equivalents | 694,695 | 528,397 | $ 371,978 | $ 746,042 |
Assets segregated pursuant to regulations | 23,411 | 40,145 | ||
Intercompany receivables from subsidiaries (primarily nonbank subsidiaries) | 1,156,276 | 1,167,084 | ||
Investments in consolidated subsidiaries: | ||||
Bank subsidiary | 2,020,710 | 1,823,342 | ||
Non-bank subsidiaries | 4,031,429 | 3,448,191 | ||
Property and equipment, net | 14,173 | 14,457 | ||
Goodwill and identifiable intangible assets, net | 31,954 | 31,954 | ||
Other assets | 659,901 | 624,452 | ||
Total assets | 8,632,549 | 7,678,022 | ||
Liabilities and equity: | ||||
Other payables | 93,583 | 80,576 | ||
Intercompany payables to subsidiaries (primarily nonbank subsidiaries) | 140,949 | 52,699 | ||
Accrued compensation and benefits | 479,920 | 414,195 | ||
Senior notes payable | 1,549,636 | 1,548,839 | ||
Total liabilities | 2,264,088 | 2,096,309 | ||
Equity | 6,368,461 | 5,581,713 | ||
Total liabilities and equity | $ 8,632,549 | $ 7,678,022 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | |||
Interest income | $ 1,043,993 | $ 802,126 | $ 640,397 |
Other | 74,609 | 91,021 | 81,690 |
Total revenues | 7,475,821 | 6,524,875 | 5,521,120 |
Interest expense | (201,503) | (153,778) | (116,056) |
Net revenues | 7,274,318 | 6,371,097 | 5,405,064 |
Non-interest expenses: | |||
Compensation and benefits | 4,795,375 | 4,228,387 | 3,624,607 |
Communications and information processing | 365,879 | 310,961 | 279,746 |
Occupancy and equipment costs | 201,943 | 190,737 | 167,455 |
Business development | 181,470 | 154,926 | 148,413 |
Losses on extinguishment of debt | 0 | 45,746 | 0 |
Other | 307,978 | 402,724 | 244,096 |
Income before income tax benefit and equity in undistributed net income of subsidiaries | 1,304,877 | 927,978 | 811,944 |
Provision for income taxes | 453,960 | 289,111 | 271,293 |
Net income attributable to Raymond James Financial, Inc. | 856,695 | 636,235 | 529,350 |
RJF Parent Company | |||
Revenues: | |||
Dividends from non-bank subsidiaries | 225,492 | 183,347 | 248,020 |
Dividends from bank subsidiary | 130,000 | 125,000 | 75,000 |
Interest from subsidiaries | 25,234 | 16,404 | 8,999 |
Interest income | 4,292 | 1,838 | 807 |
Other | 19,396 | 25,323 | 4,654 |
Total revenues | 404,414 | 351,912 | 337,480 |
Interest expense | (73,907) | (94,921) | (78,089) |
Net revenues | 330,507 | 256,991 | 259,391 |
Non-interest expenses: | |||
Compensation and benefits | 67,621 | 61,765 | 54,664 |
Communications and information processing | 8,862 | 8,741 | 6,330 |
Occupancy and equipment costs | 1,156 | 677 | 636 |
Business development | 19,833 | 18,773 | 18,364 |
Losses on extinguishment of debt | 0 | 45,746 | 0 |
Other | 17,411 | 14,707 | 9,792 |
Intercompany allocations and charges | (31,817) | (30,643) | (40,424) |
Total non-interest expenses | 83,066 | 119,766 | 49,362 |
Income before income tax benefit and equity in undistributed net income of subsidiaries | 247,441 | 137,225 | 210,029 |
Provision for income taxes | (11,436) | (85,529) | (64,658) |
Income before equity in undistributed net income of subsidiaries | 258,877 | 222,754 | 274,687 |
Equity in undistributed net income of subsidiaries | 597,818 | 413,481 | 254,663 |
Net income attributable to Raymond James Financial, Inc. | $ 856,695 | $ 636,235 | $ 529,350 |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 856,695 | $ 636,235 | $ 529,350 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Losses on extinguishment of debt | 0 | 45,746 | 0 |
Other | 24,847 | 29,532 | 16,940 |
Net change in: | |||
Assets segregated pursuant to regulations | 1,019,096 | 1,430,898 | (1,942,429) |
Accrued compensation and benefits | 131,569 | 160,038 | 46,367 |
Net cash provided by/(used in) operating activities | 1,903,327 | 1,305,936 | (573,318) |
Cash flows from investing activities: | |||
Net cash used in investing activities | (3,475,914) | (3,376,070) | (2,917,903) |
Cash flows from financing activities: | |||
Extinguishment of senior notes payable | 0 | (650,000) | (250,000) |
Premium paid on extinguishment of senior notes payable | 0 | (36,892) | 0 |
Purchases of treasury stock | (61,971) | (34,055) | (162,502) |
Dividends on common stock | (151,336) | (127,202) | (113,435) |
Net cash provided by financing activities | 1,420,182 | 4,064,563 | 2,540,479 |
Net increase/(decrease) in cash and cash equivalents | (169,366) | 2,019,220 | (950,554) |
Cash and cash equivalents at beginning of year | 3,669,672 | 1,650,452 | 2,601,006 |
Cash and cash equivalents at end of year | 3,500,306 | 3,669,672 | 1,650,452 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 200,928 | 155,984 | 113,517 |
Cash received for income taxes, net | 231,136 | 349,009 | 303,793 |
RJF Parent Company | |||
Cash flows from operating activities: | |||
Net income | 856,695 | 636,235 | 529,350 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss/(gain) on investments | 1,196 | (14,588) | (11,538) |
(Gain)/loss on company-owned life insurance policies | (37,173) | (47,920) | (25,642) |
Equity in undistributed net income of subsidiaries | (597,818) | (413,481) | (254,663) |
Losses on extinguishment of debt | 0 | 45,746 | 0 |
Other | 114,294 | 97,616 | 73,798 |
Net change in: | |||
Assets segregated pursuant to regulations | 16,734 | (40,145) | 0 |
Intercompany receivables | 6,468 | 178,631 | 19,641 |
Other assets | 47,411 | 80,561 | 97,067 |
Intercompany payables | 88,251 | 38,577 | (115,657) |
Other payables | 13,009 | (764) | 2,396 |
Accrued compensation and benefits | 65,725 | 68,180 | 58,520 |
Net cash provided by/(used in) operating activities | 574,792 | 628,648 | 373,272 |
Cash flows from investing activities: | |||
(Investments in)/distributions from subsidiaries, net | (205,311) | (36,520) | (637,689) |
Advances to subsidiaries, net | 4,340 | (117,670) | (394,383) |
Proceeds from sales/(purchases) of investments, net | 12,148 | 4,836 | 24,609 |
Purchase of investments in company-owned life insurance policies, net | (69,711) | (40,661) | (49,488) |
Net cash used in investing activities | (258,534) | (190,015) | (1,056,951) |
Cash flows from financing activities: | |||
Proceeds from senior note issuances, net of debt issuance costs paid | 0 | 508,473 | 792,221 |
Extinguishment of senior notes payable | 0 | (650,000) | (250,000) |
Premium paid on extinguishment of senior notes payable | 0 | (36,892) | 0 |
Exercise of stock options and employee stock purchases | 63,347 | 57,462 | 43,331 |
Purchases of treasury stock | (61,971) | (34,055) | (162,502) |
Dividends on common stock | (151,336) | (127,202) | (113,435) |
Net cash provided by financing activities | (149,960) | (282,214) | 309,615 |
Net increase/(decrease) in cash and cash equivalents | 166,298 | 156,419 | (374,064) |
Cash and cash equivalents at beginning of year | 528,397 | 371,978 | 746,042 |
Cash and cash equivalents at end of year | 694,695 | 528,397 | 371,978 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 77,736 | 98,554 | 74,568 |
Cash received for income taxes, net | 162,867 | 92,568 | 27,397 |
Supplemental disclosures of noncash investing activity: | |||
Investments in subsidiaries, net | 356 | 24,352 | 781 |
Losses on extinguishment of debt | 0 | 8,854 | 0 |
RJF Credit Facility | |||
Cash flows from financing activities: | |||
Proceeds from borrowings on the RJF Credit Facility | 300,000 | 0 | 0 |
Repayment of borrowings on the RJF Credit Facility | $ (300,000) | $ 0 | $ 0 |