| | | | | | | | |
| July 28, 2021 | | FOR IMMEDIATE RELEASE |
| | Media Contact: Steve Hollister, 727.567.2824 |
| | Investor Contact: Kristina Waugh, 727.567.7654 |
| | raymondjames.com/news-and-media/press-releases |
RAYMOND JAMES FINANCIAL REPORTS THIRD QUARTER
OF FISCAL 2021 RESULTS
•Record quarterly net revenues of $2.47 billion, up 35% over the prior year’s fiscal third quarter and 4% over the preceding quarter
•Quarterly net income of $307 million, or $2.18 per diluted share, and adjusted quarterly net income of $386 million(1), or $2.74 per diluted share(1)
•Records for client assets under administration of $1.17 trillion, financial assets under management of $191.0 billion, and net loans at Raymond James Bank of $23.9 billion
•Record Private Client Group assets in fee-based accounts of $616.7 billion, increases of 39% over June 2020 and 9% over March 2021
•Record Private Client Group financial advisors of 8,413, net increases of 258 over June 2020 and 86 over March 2021
•Annualized return on equity for the quarter of 15.9% and annualized adjusted return on tangible common equity for the quarter of 22.2%(1)
ST. PETERSBURG, Fla – Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $2.47 billion and net income of $307 million, or $2.18 per diluted share, for the fiscal third quarter ended June 30, 2021. Excluding $98 million associated with losses on extinguishment of debt(2) and $7 million of acquisition-related expenses(3), adjusted quarterly net income was $386 million(1), or $2.74 per diluted share(1). The increase in quarterly net revenues was largely driven by record asset management and related administrative fees and record investment banking revenues during the quarter. Adjusted net income(1) growth was due to higher net revenues, along with the loan loss reserve release in the quarter compared to provision for credit losses in the year-ago period.
For the first nine months of the fiscal year, record net revenues of $7.07 billion increased 20%, record earnings per diluted share of $6.92 increased 60%, and adjusted earnings per diluted share of $7.50(1) increased 73% over the first nine months of fiscal 2020.
“With strength across our complementary and diverse businesses, we achieved record results for the first nine months of the fiscal year, including record net revenues and pre-tax income in our Private Client Group, Capital Markets and Asset Management segments,” said Chairman and CEO Paul Reilly. “We are well positioned heading into the fiscal fourth quarter with records for client assets, the number of financial advisors, financial assets under management, and net loans at Raymond James Bank. Furthermore, financial advisor recruiting and investment banking pipelines remain strong.”
Please refer to the footnotes at the end of this press release for additional information.
1
Segment Results
Private Client Group
•Record quarterly net revenues of $1.70 billion, up 36% over the prior year’s fiscal third quarter and 3% over the preceding quarter
•Record quarterly pre-tax income of $195 million, up 114% over the prior year’s fiscal third quarter and 2% over the preceding quarter
•Record Private Client Group assets under administration of $1.10 trillion, up 32% over June 2020 and 7% over March 2021
•Record Private Client Group assets in fee-based accounts of $616.7 billion, up 39% over June 2020 and 9% over March 2021
•Record Private Client Group financial advisors of 8,413, net increases of 258 over June 2020 and 86 over March 2021
Record quarterly results were primarily attributable to higher asset management and related administrative fees, reflecting record assets in fee-based accounts largely driven by equity market appreciation and the net addition of financial advisors.
“As we remain focused on retaining and attracting high-quality financial advisors, we experienced a solid net increase in the number of financial advisors during the quarter,” said Reilly. “Recruiting activity remains strong across all of our affiliation options, as advisors are attracted to our robust platform and our advisor- and client-focused culture.”
Capital Markets
•Quarterly net revenues of $446 million, up 38% over the prior year’s fiscal third quarter and 3% over the preceding quarter
•Quarterly pre-tax income of $115 million, up 85% over the prior year’s fiscal third quarter and 10% over the preceding quarter
•Record quarterly investment banking revenues of $265 million, up 101% over the prior year’s fiscal third quarter and 17% over the preceding quarter
•Record merger & acquisition and advisory (M&A) revenues of $153 million, up 155% over the prior year’s fiscal third quarter and 25% over the preceding quarter
Record investment banking revenues were driven by record M&A revenues, combined with strong debt and equity underwriting results. Fixed income brokerage revenues remained solid, albeit lower than the record set in the preceding quarter.
“Solid investment banking and fixed income brokerage results continue to drive a record-setting year for the Capital Markets segment, and we are entering the fiscal fourth quarter with strong investment banking pipelines,” said Reilly. “In May, we announced the acquisition of Cebile Capital, a leading private fund placement agent and secondary market advisor to private equity firms. We expect to close the acquisition in the fiscal fourth quarter of 2021, and we are excited to welcome the Cebile team to the Raymond James family.”
Please refer to the footnotes at the end of this press release for additional information.
2
Asset Management
•Record quarterly net revenues of $225 million, up 38% over the prior year’s fiscal third quarter and 8% over the preceding quarter
•Record quarterly pre-tax income of $105 million, up 75% over the prior year’s fiscal third quarter and 21% over the preceding quarter
•Record financial assets under management of $191.0 billion, up 31% over June 2020 and 7% over March 2021
Record quarterly results were primarily attributable to growth of financial assets under management driven by equity market appreciation and net inflows into fee-based accounts in the Private Client Group, which were partially offset by modest net outflows for Carillon Tower Advisers during the quarter.
Raymond James Bank
•Quarterly net revenues of $169 million, down 5% compared to the prior year’s fiscal third quarter and up 6% over the preceding quarter
•Quarterly pre-tax income of $104 million, up 643% over the prior year’s fiscal third quarter and down 6% compared to the preceding quarter
•Record net loans of $23.9 billion, up 13% over June 2020 and 4% over March 2021
•Net interest margin (NIM) of 1.92% for the quarter, down 37 basis points compared to the prior year’s fiscal third quarter and 2 basis points compared to the preceding quarter
Quarterly net revenues declined 5% compared to the prior year’s fiscal third quarter primarily due to lower short-term interest rates, which negatively impacted the Bank’s NIM. Sequentially, quarterly net revenues grew 6%, largely due to higher asset balances. Net loans grew 13% year-over-year and 4% sequentially, primarily driven by strong securities-based loan growth of more than 50% over the prior year’s fiscal third quarter and 14% over the preceding quarter. Year-over-year pre-tax income growth was primarily due to the $19 million loan loss reserve release in the quarter compared to the provision for credit losses in the comparative period. The bank loan loss benefit was largely attributable to the improved macroeconomic outlook. The bank loan allowance for credit losses as a percent of total loans ended the quarter at 1.34%. Nonperforming assets as a percent of total assets ended the quarter at 0.12%.
Other
The Other segment included $24 million of valuation gains on private equity investments during the quarter, of which $10 million was attributable to noncontrolling interests and were offset in other expenses. Following the issuance of $750 million of 3.75%, 30-year senior notes that settled in April, all $250 million principal amount outstanding of the 5.625% senior notes due 2024 and all $500 million principal amount outstanding of the 3.625% senior notes due 2026 were redeemed during the fiscal third quarter, resulting in $98 million of losses on extinguishment of debt(2).
In the fiscal third quarter, the firm repurchased 375,000 shares for $48 million, an average price of approximately $129 per share, leaving $632 million available under the Board of Directors’ repurchase authorization as of July 28, 2021. At the end of the quarter, the total capital ratio was 25.5%(4) and the tier 1 leverage ratio was 12.6%(4), both well above the regulatory requirements.
Please refer to the footnotes at the end of this press release for additional information.
3
A conference call to discuss the results will take place tomorrow morning, Thursday, July 29, at 8:15 a.m. ET. The live audio webcast, and the presentation which management will review on the call, will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings. For a listen-only connection to the conference call, please dial: 800-754-1382 (conference code: 21996118). An audio replay of the call will be available at the same location until September 30, 2021.
About Raymond James Financial, Inc.
Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,400 financial advisors. Total client assets are $1.17 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.
Forward-Looking Statements
Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, words such as “expect,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.
Please refer to the footnotes at the end of this press release for additional information.
4
| | | | | |
RAYMOND JAMES FINANCIAL, INC. Fiscal Third Quarter of 2021 | Selected Financial Highlights
(Unaudited) |
Summary results of operations
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended | | % change from |
| $ in millions, except per share amounts | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Net revenues | | $ | 2,471 | | | $ | 1,834 | |
| $ | 2,372 | | | 35% | | 4% |
| Pre-tax income | | $ | 385 | | | $ | 198 | | | $ | 447 | | | 94% | | (14)% |
| Net income | | $ | 307 | | | $ | 172 | | | $ | 355 | | | 78% | | (14)% |
| | | | | | | | | | |
Earnings per common share: (5) | | | | | | | | | | |
| Basic | | $ | 2.24 | | | $ | 1.25 | | | $ | 2.58 | | | 79% | | (13)% |
| Diluted | | $ | 2.18 | | | $ | 1.23 | | | $ | 2.51 | | | 77% | | (13)% |
| | | | | | | | | | |
| | | | | | | | | | |
Non-GAAP measures: (1) | | | | | | | | | | |
| Adjusted pre-tax income | | $ | 490 | | | NA | | NA | | 147% | | 10% |
| Adjusted net income | | $ | 386 | | | NA | | NA | | 124% | | 9% |
Adjusted earnings per common share - basic (5) | | $ | 2.81 | | | NA | | NA | | 125% | | 9% |
Adjusted earnings per common share - diluted (5) | | $ | 2.74 | | | NA | | NA | | 123% | | 9% |
| | | | | | | | | | | | | | | | | | | | |
| | Nine months ended |
| $ in millions, except per share amounts | | June 30,
2021 | | June 30,
2020 | | % change |
| Net revenues | | $ | 7,065 | | | $ | 5,911 | |
| 20% |
| Pre-tax income | | $ | 1,231 | | | $ | 796 | | | 55% |
| Net income | | $ | 974 | | | $ | 609 | | | 60% |
| | | | | | |
Earnings per common share: (5) | | | | | | |
| Basic | | $ | 7.09 | | | $ | 4.41 | | | 61% |
| Diluted | | $ | 6.92 | | | $ | 4.33 | | | 60% |
| | | | | | |
| | | | | | |
Non-GAAP measures: (1) | | | | | | |
| Adjusted pre-tax income | | $ | 1,338 | | | NA | | 68% |
| Adjusted net income | | $ | 1,055 | | | NA | | 73% |
Adjusted earnings per common share - basic (5) | | $ | 7.68 | | | NA | | 74% |
Adjusted earnings per common share - diluted (5) | | $ | 7.50 | | | NA | | 73% |
Please refer to the footnotes at the end of this press release for additional information.
5
RAYMOND JAMES FINANCIAL, INC.
Fiscal Third Quarter of 2021
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated Statements of Income
(Unaudited) |
| | | | | | |
| | Three months ended | | % change from |
| in millions, except per share amounts | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Revenues: | | | | | | | | | | |
| Asset management and related administrative fees | | $ | 1,262 | | | $ | 867 | | | $ | 1,173 | | | 46% | | 8% |
| Brokerage revenues: | | | | | | | | | | |
| Securities commissions | | 415 | | | 343 | | | 443 | | | 21% | | (6)% |
| Principal transactions | | 137 | | | 143 | | | 148 | | | (4)% | | (7)% |
| Total brokerage revenues | | 552 | | | 486 | | | 591 | | | 14% | | (7)% |
| Account and service fees | | 161 | | | 134 | | | 159 | | | 20% | | 1% |
| Investment banking | | 276 | | | 139 | | | 242 | | | 99% | | 14% |
| Interest income | | 205 | | | 217 | | | 200 | | | (6)% | | 3% |
Other (6) | | 55 | | | 33 | | | 44 | | | 67% | | 25% |
| Total revenues | | 2,511 | | | 1,876 | | | 2,409 | | | 34% | | 4% |
| Interest expense | | (40) | | | (42) | | | (37) | | | (5)% | | 8% |
| Net revenues | | 2,471 | | | 1,834 | | | 2,372 | | | 35% | | 4% |
| Non-interest expenses: | | | | | | | | | | |
| Compensation, commissions and benefits | | 1,661 | | | 1,277 | | | 1,648 | | | 30% | | 1% |
| Non-compensation expenses: | | | | | | | | | | |
| Communications and information processing | | 109 | | | 100 | | | 107 | | | 9% | | 2% |
| Occupancy and equipment | | 58 | | | 55 | | | 57 | | | 5% | | 2% |
| Business development | | 31 | | | 21 | | | 21 | | | 48% | | 48% |
| Investment sub-advisory fees | | 34 | | | 23 | | | 31 | | | 48% | | 10% |
| Professional fees | | 26 | | | 24 | | | 24 | | | 8% | | 8% |
Bank loan provision/(benefit) for credit losses (7) | | (19) | | | 81 | | | (32) | | | NM | | NM |
Losses on extinguishment of debt (2) | | 98 | | | — | | | — | | | NM | | NM |
Acquisition-related expenses (3) | | 7 | | | — | | | — | | | NM | | NM |
| | | | | | | | | | |
Other (6) | | 81 | | | 55 | | | 69 | | | 47% | | 17% |
| Total non-compensation expenses | | 425 | | | 359 | | | 277 | | | 18% | | 53% |
| Total non-interest expenses | | 2,086 | | | 1,636 | | | 1,925 | | | 28% | | 8% |
| Pre-tax income | | 385 | | | 198 | | | 447 | | | 94% | | (14)% |
| Provision for income taxes | | 78 | | | 26 | | | 92 | | | 200% | | (15)% |
| Net income | | $ | 307 | | | $ | 172 | | | $ | 355 | | | 78% | | (14)% |
| | | | | | | | | | |
| | | | | | | | | | |
Earnings per common share – basic (5) | | $ | 2.24 | | | $ | 1.25 | | | $ | 2.58 | | | 79% | | (13)% |
Earnings per common share – diluted (5) | | $ | 2.18 | | | $ | 1.23 | | | $ | 2.51 | | | 77% | | (13)% |
| Weighted-average common shares outstanding – basic | | 137.2 | | | 137.1 | | | 137.8 | | | — | | — |
| Weighted-average common and common equivalent shares outstanding – diluted | | 141.1 | | | 139.4 | | | 141.2 | | | 1% | | — |
Please refer to the footnotes at the end of this press release for additional information.
6
RAYMOND JAMES FINANCIAL, INC.
Fiscal Third Quarter of 2021
| | | | | | | | | | | | | | | | | | | | |
Consolidated Statements of Income
(Unaudited) |
| | |
| | Nine months ended |
| in millions, except per share amounts | | June 30,
2021 | | June 30,
2020 | | % change |
| Revenues: | | | | | | |
| Asset management and related administrative fees | | $ | 3,502 | | | $ | 2,828 | | | 24% |
| Brokerage revenues: | | | | | | |
| Securities commissions | | 1,239 | | | 1,116 | | | 11% |
| Principal transactions | | 432 | | | 345 | | | 25% |
| Total brokerage revenues | | 1,671 | | | 1,461 | | | 14% |
| Account and service fees | | 465 | | | 484 | | | (4)% |
| Investment banking | | 779 | | | 428 | | | 82% |
| Interest income | | 608 | | | 799 | | | (24)% |
Other (6) | | 155 | | | 47 | | | 230% |
| Total revenues | | 7,180 | | | 6,047 | | | 19% |
| Interest expense | | (115) | | | (136) | | | (15)% |
| Net revenues | | 7,065 | | | 5,911 | | | 20% |
| Non-interest expenses: | | | | | | |
| Compensation, commissions and benefits | | 4,809 | | | 4,050 | | | 19% |
| Non-compensation expenses: | | | | | | |
| Communications and information processing | | 315 | | | 293 | | | 8% |
| Occupancy and equipment | | 172 | | | 168 | | | 2% |
| Business development | | 75 | | | 106 | | | (29)% |
| Investment sub-advisory fees | | 93 | | | 75 | | | 24% |
| Professional fees | | 80 | | | 68 | | | 18% |
Bank loan provision/(benefit) for credit losses (7) | | (37) | | | 188 | | | NM |
Losses on extinguishment of debt (2) | | 98 | | | — | | | NM |
Acquisition-related expenses (3) | | 9 | | | — | | | NM |
| | | | | | |
Other (6) | | 220 | | | 167 | | | 32% |
| Total non-compensation expenses | | 1,025 | | | 1,065 | | | (4)% |
| Total non-interest expenses | | 5,834 | | | 5,115 | | | 14% |
| Pre-tax income | | 1,231 | | | 796 | | | 55% |
| Provision for income taxes | | 257 | | | 187 | | | 37% |
| Net income | | $ | 974 | | | $ | 609 | | | 60% |
| | | | | | |
| | | | | | |
Earnings per common share – basic (5) | | $ | 7.09 | | | $ | 4.41 | | | 61% |
Earnings per common share – diluted (5) | | $ | 6.92 | | | $ | 4.33 | | | 60% |
| Weighted-average common shares outstanding – basic | | 137.2 | | | 137.9 | | | (1)% |
| Weighted-average common and common equivalent shares outstanding – diluted | | 140.6 | | | 140.5 | | | — |
Please refer to the footnotes at the end of this press release for additional information.
7
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Consolidated Selected Key Metrics |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of | | | % change from |
| $ in millions, except per share amounts | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | | June 30,
2020 | | March 31,
2021 |
| Total assets | | $ | 57,161 | | | $ | 44,682 | | | $ | 56,066 | | | | 28% | | 2% |
| Total equity attributable to Raymond James Financial, Inc. | | $ | 7,863 | | | $ | 6,965 | | | $ | 7,592 | | | | 13% | | 4% |
Book value per share (8) | | $ | 57.44 | | | $ | 50.84 | | | $ | 55.34 | | | | 13% | | 4% |
Tangible book value per share (1) (8) | | $ | 51.55 | | | $ | 46.69 | | | $ | 49.42 | | | | 10% | | 4% |
| | | | | | | | | | | |
Capital ratios: | | | | | | | | | | | |
| Tier 1 capital | | 24.3 | % | (4) | 24.8 | % | | 23.6 | % | | | | | |
| Total capital | | 25.5 | % | (4) | 26.0 | % | | 24.7 | % | | | | | |
| Tier 1 leverage | | 12.6 | % | (4) | 14.5 | % | | 12.2 | % | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended | | | Nine months ended |
| | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | | June 30,
2021 | | June 30,
2020 |
Return on equity (9) | | 15.9 | % | | 10.0 | % | | 19.0 | % | | | 17.4 | % | | 11.9 | % |
Adjusted return on equity (1) (9) | | 19.9 | % | | NA | | NA | | | 18.7 | % | | NA |
Return on tangible common equity (1) (9) | | 17.7 | % | | 10.9 | % | | 21.2 | % | | | 19.3 | % | | 13.1 | % |
Adjusted return on tangible common equity (1) (9) | | 22.2 | % | | NA | | NA | | | 20.8 | % | | NA |
Pre-tax margin (10) | | 15.6 | % | | 10.8 | % | | 18.8 | % | | | 17.4 | % | | 13.5 | % |
Adjusted pre-tax margin (1) (10) | | 19.8 | % | | NA | | NA | | | 18.9 | % | | NA |
Total compensation ratio (11) | | 67.2 | % | | 69.6 | % | | 69.5 | % | | | 68.1 | % | | 68.5 | % |
| Effective tax rate | | 20.3 | % | | 13.1 | % | | 20.6 | % | | | 20.9 | % | | 23.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Client asset metrics ($ in billions) | | As of | | | % change from |
| | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | | June 30,
2020 | | March 31,
2021 |
| Client assets under administration | | $ | 1,165.0 | | | $ | 876.9 | | | $ | 1,085.4 | | | | 33% | | 7% |
| Private Client Group assets under administration | | $ | 1,102.9 | | | $ | 833.1 | | | $ | 1,028.1 | | | | 32% | | 7% |
| Private Client Group assets in fee-based accounts | | $ | 616.7 | | | $ | 443.0 | | | $ | 567.6 | | | | 39% | | 9% |
| Financial assets under management | | $ | 191.0 | | | $ | 145.4 | | | $ | 178.2 | | | | 31% | | 7% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Clients’ domestic cash sweep balances ($ in millions) | | As of | | | % change from |
| | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | | June 30,
2020 | | March 31,
2021 |
Raymond James Bank Deposit Program (“RJBDP”): (12) | | | | | | | | | | | |
| Raymond James Bank | | $ | 29,253 | | | $ | 24,101 | | | $ | 28,174 | | | | 21% | | 4% |
| Third-party banks | | 25,080 | | | 24,661 | | | 25,110 | | | | 2% | | — |
| Subtotal RJBDP | | 54,333 | | | 48,762 | | | 53,284 | | | | 11% | | 2% |
| Client Interest Program | | 8,610 | | | 3,157 | | | 9,517 | | | | 173% | | (10)% |
| Total clients’ domestic cash sweep balances | | $ | 62,943 | | | $ | 51,919 | | | $ | 62,801 | | | | 21% | | — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended | | | Nine months ended |
| | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | | June 30,
2021 | | June 30,
2020 |
Average yield on RJBDP - third-party banks (13) | | 0.29 | % | | 0.33 | % | | 0.30 | % | | | 0.30 | % | | 0.97 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Private Client Group financial advisors | | As of | | | % change from |
| | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | | June 30,
2020 | | March 31,
2021 |
| Employees | | 3,423 | | | 3,379 | | | 3,375 | | | | 1% | | 1% |
| Independent contractors | | 4,990 | | | 4,776 | | | 4,952 | | | | 4% | | 1% |
| Total advisors | | 8,413 | | | 8,155 | | | 8,327 | | | | 3% | | 1% |
Please refer to the footnotes at the end of this press release for additional information.
8
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Consolidated Net Interest |
| Fiscal Third Quarter of 2021 | (Unaudited) |
The following tables present our consolidated average interest-earning asset and interest-bearing liability balances, interest income and expense and the related rates.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated Net Interest |
| | | Three months ended |
| | | June 30, 2021 | | | June 30, 2020 | | | March 31, 2021 |
| $ in millions | | Average
balance | | Interest | | Annualized average
rate | | | Average
balance | | Interest | | Annualized average
rate | | | Average
balance | | Interest | | Annualized average
rate |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 5,644 | | | $ | 3 | | | 0.20 | % | | | $ | 6,605 | | | $ | 4 | | | 0.26 | % | | | $ | 5,284 | | | $ | 2 | | | 0.20 | % |
| Assets segregated pursuant to regulations | | 9,016 | | | 3 | | | 0.16 | % | | | 3,408 | | | 3 | | | 0.36 | % | | | 10,087 | | | 5 | | | 0.18 | % |
| Available-for-sale securities | | 8,041 | | | 20 | | | 0.96 | % | | | 4,437 | | | 23 | | | 2.01 | % | | | 7,997 | | | 21 | | | 1.08 | % |
| Brokerage client receivables | | 2,363 | | | 19 | | | 3.33 | % | | | 2,065 | | | 18 | | | 3.47 | % | | | 2,222 | | | 19 | | | 3.36 | % |
| Bank loans, net of unearned income and deferred expenses: | | | | | | | | | | | | | | | | | | | | |
| Loans held for investment: | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial (“C&I”) loans (14) | | 7,936 | | | 50 | | | 2.51 | % | | | 7,957 | | | 58 | | | 2.93 | % | | | 7,540 | | | 48 | | | 2.56 | % |
Commercial real estate (“CRE”) loans (14) | | 2,748 | | | 18 | | | 2.59 | % | | | 2,610 | | | 19 | | | 2.85 | % | | | 2,665 | | | 17 | | | 2.54 | % |
Real estate investment trust (“REIT”) loans (14) | | 1,327 | | | 9 | | | 2.53 | % | | | 1,412 | | | 9 | | | 2.45 | % | | | 1,309 | | | 8 | | | 2.50 | % |
Tax-exempt loans (15) | | 1,294 | | | 9 | | | 3.33 | % | | | 1,272 | | | 9 | | | 3.34 | % | | | 1,227 | | | 8 | | | 3.35 | % |
| Residential mortgage loans | | 5,126 | | | 34 | | | 2.70 | % | | | 4,983 | | | 37 | | | 2.97 | % | | | 5,005 | | | 34 | | | 2.72 | % |
| Securities-based loans and other | | 5,208 | | | 29 | | | 2.22 | % | | | 3,576 | | | 24 | | | 2.59 | % | | | 4,638 | | | 26 | | | 2.23 | % |
| Loans held for sale | | 142 | | | 1 | | | 2.92 | % | | | 111 | | | 1 | | | 3.22 | % | | | 177 | | | 1 | | | 1.89 | % |
| Total bank loans, net | | 23,781 | | | 150 | | | 2.54 | % | | | 21,921 | | | 157 | | | 2.87 | % | | | 22,561 | | | 142 | | | 2.56 | % |
| All other interest-earning assets | | 2,288 | | | 10 | | | 1.51 | % | | | 1,964 | | | 12 | | | 2.66 | % | | | 2,201 | | | 11 | | | 1.87 | % |
| Total interest-earning assets | | $ | 51,133 | | | $ | 205 | | | 1.60 | % | | | $ | 40,400 | | | $ | 217 | | | 2.16 | % | | | $ | 50,352 | | | $ | 200 | | | 1.61 | % |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | |
| Bank deposits: | | | | | | | | | | | | | | | | | | | | |
| Savings, money market and Negotiable Order of Withdrawal accounts | | $ | 28,908 | | | $ | 1 | | | 0.02 | % | | | $ | 25,060 | | | $ | 2 | | | 0.02 | % | | | $ | 27,662 | | | $ | 2 | | | 0.02 | % |
| Certificates of deposit | | 883 | | | 4 | | | 1.91 | % | | | 1,104 | | | 5 | | | 2.00 | % | | | 898 | | | 4 | | | 1.88 | % |
| Total bank deposits | | 29,791 | | | 5 | | | 0.08 | % | | | 26,164 | | | 7 | | | 0.10 | % | | | 28,560 | | | 6 | | | 0.08 | % |
| Brokerage client payables | | 10,486 | | | 1 | | | 0.03 | % | | | 4,751 | | | 3 | | | 0.18 | % | | | 11,485 | | | 1 | | | 0.02 | % |
| Other borrowings | | 860 | | | 4 | | | 2.19 | % | | | 891 | | | 5 | | | 2.23 | % | | | 862 | | | 5 | | | 2.18 | % |
| Senior notes payable | | 2,211 | | | 25 | | | 4.49 | % | | | 2,067 | | | 24 | | | 4.69 | % | | | 2,045 | | | 24 | | | 4.74 | % |
| All other interest-bearing liabilities | | 602 | | | 5 | | | 1.12 | % | | | 586 | | | 3 | | | 1.10 | % | | | 600 | | | 1 | | | 0.88 | % |
| Total interest-bearing liabilities | | $ | 43,950 | | | $ | 40 | | | 0.34 | % | | | $ | 34,459 | | | $ | 42 | | | 0.48 | % | | | $ | 43,552 | | | $ | 37 | | | 0.34 | % |
| Net interest income | | | | $ | 165 | | | | | | | | $ | 175 | | | | | | | | $ | 163 | | | |
| | | | | | | | | | | | | | | | | | | | |
Please refer to the footnotes at the end of this press release for additional information.
9
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Consolidated Net Interest |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated Net Interest |
| | | Nine months ended |
| | | June 30, 2021 | | | June 30, 2020 |
| $ in millions | | Average
balance | | Interest | | Annualized average
rate | | | Average
balance | | Interest | | Annualized average
rate |
| Interest-earning assets: | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 5,548 | | | $ | 9 | | | 0.22 | % | | | $ | 5,013 | | | $ | 37 | | | 0.99 | % |
| Assets segregated pursuant to regulations | | 8,307 | | | 11 | | | 0.18 | % | | | 2,853 | | | 25 | | | 1.20 | % |
| Available-for-sale securities | | 7,837 | | | 64 | | | 1.08 | % | | | 3,654 | | | 60 | | | 2.18 | % |
| Brokerage client receivables | | 2,222 | | | 56 | | | 3.38 | % | | | 2,290 | | | 66 | | | 3.87 | % |
| Bank loans, net of unearned income and deferred expenses: | | | | | | | | | | | | | |
| Loans held for investment: | | | | | | | | | | | | | |
C&I loans (14) | | 7,670 | | | 149 | | | 2.57 | % | | | 8,012 | | | 225 | | | 3.70 | % |
CRE loans (14) | | 2,665 | | | 52 | | | 2.57 | % | | | 2,593 | | | 72 | | | 3.63 | % |
REIT loans (14) | | 1,290 | | | 25 | | | 2.49 | % | | | 1,349 | | | 34 | | | 3.33 | % |
Tax-exempt loans (15) | | 1,253 | | | 25 | | | 3.34 | % | | | 1,236 | | | 25 | | | 3.35 | % |
| Residential mortgage loans | | 5,044 | | | 103 | | | 2.73 | % | | | 4,823 | | | 112 | | | 3.09 | % |
| Securities-based loans and other | | 4,709 | | | 80 | | | 2.24 | % | | | 3,460 | | | 89 | | | 3.37 | % |
| Loans held for sale | | 153 | | | 3 | | | 2.54 | % | | | 138 | | | 4 | | | 3.77 | % |
| Total bank loans, net | | 22,784 | | | 437 | | | 2.57 | % | | | 21,611 | | | 561 | | | 3.46 | % |
| All other interest-earning assets | | 2,264 | | | 31 | | | 1.79 | % | | | 2,329 | | | 50 | | | 2.82 | % |
| Total interest-earning assets | | $ | 48,962 | | | $ | 608 | | | 1.66 | % | | | $ | 37,750 | | | $ | 799 | | | 2.83 | % |
| Interest-bearing liabilities: | | | | | | | | | | | | | |
| Bank deposits: | | | | | | | | | | | | | |
| Savings, money market and Negotiable Order of Withdrawal accounts | | $ | 27,732 | | | $ | 4 | | | 0.02 | % | | | $ | 23,190 | | | $ | 20 | | | 0.11 | % |
| Certificates of deposit | | 911 | | | 13 | | | 1.90 | % | | | 993 | | | 15 | | | 2.06 | % |
| Total bank deposits | | 28,643 | | | 17 | | | 0.08 | % | | | 24,183 | | | 35 | | | 0.19 | % |
| Brokerage client payables | | 9,765 | | | 3 | | | 0.03 | % | | | 3,929 | | | 9 | | | 0.31 | % |
| Other borrowings | | 863 | | | 14 | | | 2.20 | % | | | 893 | | | 15 | | | 2.23 | % |
| Senior notes payable | | 2,115 | | | 73 | | | 4.62 | % | | | 1,742 | | | 61 | | | 4.66 | % |
| All other interest-bearing liabilities | | 591 | | | 8 | | | 1.05 | % | | | 878 | | | 16 | | | 1.81 | % |
| Total interest-bearing liabilities | | $ | 41,977 | | | $ | 115 | | | 0.36 | % | | | $ | 31,625 | | | $ | 136 | | | 0.56 | % |
| Net interest income | | | | $ | 493 | | | | | | | | $ | 663 | | | |
| | | | | | | | | | | | | |
Please refer to the footnotes at the end of this press release for additional information.
10
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Segment Results |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended | | % change from |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Net revenues: | | | | | | | | | | |
| Private Client Group | | $ | 1,696 | | | $ | 1,249 | | | $ | 1,647 | | | 36% | | 3% |
| Capital Markets | | 446 | | | 323 | | | 433 | | | 38% | | 3% |
| Asset Management | | 225 | | | 163 | | | 209 | | | 38% | | 8% |
| Raymond James Bank | | 169 | | | 178 | | | 160 | | | (5)% | | 6% |
Other (16) | | 2 | | | (20) | | | (12) | | | NM | | NM |
| Intersegment eliminations | | (67) | | | (59) | | | (65) | | | (14)% | | (3)% |
| Total net revenues | | $ | 2,471 | | | $ | 1,834 | | | $ | 2,372 | | | 35% | | 4% |
| | | | | | | | | | |
| Pre-tax income/(loss): | | | | | | | | | | |
| Private Client Group | | $ | 195 | | | $ | 91 | | | $ | 192 | | | 114% | | 2% |
| Capital Markets | | 115 | | | 62 | | | 105 | | | 85% | | 10% |
| Asset Management | | 105 | | | 60 | | | 87 | | | 75% | | 21% |
| Raymond James Bank | | 104 | | | 14 | | | 111 | | | 643% | | (6)% |
Other (16) | | (134) | | | (29) | | | (48) | | | (362)% | | (179)% |
| Pre-tax income | | $ | 385 | | | $ | 198 | | | $ | 447 | | | 94% | | (14)% |
| | | | | | | | | | | | | | | | | | | | |
| | Nine months ended |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | % change |
| Net revenues: | | | | | | |
| Private Client Group | | $ | 4,810 | | | $ | 4,158 | | | 16% |
| Capital Markets | | 1,331 | | | 881 | | | 51% |
| Asset Management | | 629 | | | 531 | | | 18% |
| Raymond James Bank | | 496 | | | 604 | | | (18)% |
Other (16) | | (6) | | | (72) | | | 92% |
| Intersegment eliminations | | (195) | | | (191) | | | (2)% |
| Total net revenues | | $ | 7,065 | | | $ | 5,911 | | | 20% |
| | | | | | |
| Pre-tax income/(loss): | | | | | | |
| Private Client Group | | $ | 527 | | | $ | 414 | | | 27% |
| Capital Markets | | 349 | | | 119 | | | 193% |
| Asset Management | | 275 | | | 206 | | | 33% |
| Raymond James Bank | | 286 | | | 163 | | | 75% |
Other (16) | | (206) | | | (106) | | | (94)% |
| Pre-tax income | | $ | 1,231 | | | $ | 796 | | | 55% |
Please refer to the footnotes at the end of this press release for additional information.
11
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Segment Results |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Private Client Group |
| | | | |
| | Three months ended | | % change from |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Revenues: | | | | | | | | | | |
| Asset management and related administrative fees | | $ | 1,050 | | | $ | 715 | | | $ | 979 | | | 47% | | 7% |
| Brokerage revenues: | | | | | | | | | | |
| Mutual and other fund products | | 167 | | | 131 | | | 183 | | | 27% | | (9)% |
| Insurance and annuity products | | 113 | | | 88 | | | 109 | | | 28% | | 4% |
| Equities, ETFs and fixed income products | | 110 | | | 100 | | | 121 | | | 10% | | (9)% |
| Total brokerage revenues | | 390 | | | 319 | | | 413 | | | 22% | | (6)% |
| Account and service fees: | | | | | | | | | | |
| Mutual fund and annuity service fees | | 105 | | | 82 | | | 99 | | | 28% | | 6% |
RJBDP fees: (12) | | | | | | | | | | |
| Third-party banks | | 18 | | | 20 | | | 19 | | | (10)% | | (5)% |
| Raymond James Bank | | 47 | | | 43 | | | 44 | | | 9% | | 7% |
| Client account and other fees | | 39 | | | 32 | | | 42 | | | 22% | | (7)% |
| Total account and service fees | | 209 | | | 177 | | | 204 | | | 18% | | 2% |
| Investment banking | | 11 | | | 7 | | | 16 | | | 57% | | (31)% |
| Interest income | | 31 | | | 31 | | | 30 | | | — | | 3% |
| All other | | 7 | | | 4 | | | 8 | | | 75% | | (13)% |
| Total revenues | | 1,698 | | | 1,253 | | | 1,650 | | | 36% | | 3% |
| Interest expense | | (2) | | | (4) | | | (3) | | | (50)% | | (33)% |
| Net revenues | | 1,696 | | | 1,249 | | | 1,647 | | | 36% | | 3% |
| Non-interest expenses: | | | | | | | | | | |
| Financial advisor compensation and benefits | | 1,082 | | | 783 | | | 1,040 | | | 38% | | 4% |
| Administrative compensation and benefits | | 251 | | | 235 | | | 260 | | | 7% | | (3)% |
| Total compensation, commissions and benefits | | 1,333 | | | 1,018 | | | 1,300 | | | 31% | | 3% |
| Non-compensation expenses | | 168 | | | 140 | | | 155 | | | 20% | | 8% |
| Total non-interest expenses | | 1,501 | | | 1,158 | | | 1,455 | | | 30% | | 3% |
| Pre-tax income | | $ | 195 | | | $ | 91 | | | $ | 192 | | | 114% | | 2% |
Please refer to the footnotes at the end of this press release for additional information.
12
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Segment Results |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | |
| Private Client Group |
| | | |
| | Nine months ended |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | % change |
| Revenues: | | | | | | |
| Asset management and related administrative fees | | $ | 2,914 | | | $ | 2,330 | | | 25% |
| Brokerage revenues: | | | | | | |
| Mutual and other fund products | | 498 | | | 438 | | | 14% |
| Insurance and annuity products | | 320 | | | 288 | | | 11% |
| Equities, ETFs and fixed income products | | 338 | | | 324 | | | 4% |
| Total brokerage revenues | | 1,156 | | | 1,050 | | | 10% |
| Account and service fees: | | | | | | |
| Mutual fund and annuity service fees | | 298 | | | 260 | | | 15% |
RJBDP fees: (12) | | | | | | |
| Third-party banks | | 58 | | | 129 | | | (55)% |
| Raymond James Bank | | 134 | | | 138 | | | (3)% |
| Client account and other fees | | 113 | | | 96 | | | 18% |
| Total account and service fees | | 603 | | | 623 | | | (3)% |
| Investment banking | | 33 | | | 29 | | | 14% |
| Interest income | | 91 | | | 125 | | | (27)% |
| All other | | 20 | | | 20 | | | — |
| Total revenues | | 4,817 | | | 4,177 | | | 15% |
| Interest expense | | (7) | | | (19) | | | (63)% |
| Net revenues | | 4,810 | | | 4,158 | | | 16% |
| Non-interest expenses: | | | | | | |
| Financial advisor compensation and benefits | | 3,053 | | | 2,555 | | | 19% |
| Administrative compensation and benefits | | 760 | | | 727 | | | 5% |
| Total compensation, commissions and benefits | | 3,813 | | | 3,282 | | | 16% |
| Non-compensation expenses | | 470 | | | 462 | | | 2% |
| Total non-interest expenses | | 4,283 | | | 3,744 | | | 14% |
| Pre-tax income | | $ | 527 | | | $ | 414 | | | 27% |
Please refer to the footnotes at the end of this press release for additional information.
13
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Segment Results |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Markets |
| | | | |
| | Three months ended | | % change from |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Revenues: | | | | | | | | | | |
| Brokerage revenues: | | | | | | | | | | |
| Fixed income | | $ | 124 | | | $ | 125 | | | $ | 142 | | | (1)% | | (13)% |
| Equity | | 36 | | | 41 | | | 34 | | | (12)% | | 6% |
| Total brokerage revenues | | 160 | | | 166 | | | 176 | | | (4)% | | (9)% |
| Investment banking: | | | | | | | | | | |
| Merger & acquisition and advisory | | 153 | | | 60 | | | 122 | | | 155% | | 25% |
| Equity underwriting | | 69 | | | 35 | | | 67 | | | 97% | | 3% |
| Debt underwriting | | 43 | | | 37 | | | 37 | | | 16% | | 16% |
| Total investment banking | | 265 | | | 132 | | | 226 | | | 101% | | 17% |
| Interest income | | 4 | | | 4 | | | 5 | | | — | | (20)% |
| Tax credit fund revenues | | 17 | | | 20 | | | 24 | | | (15)% | | (29)% |
| All other | | 3 | | | 3 | | | 4 | | | — | | (25)% |
| Total revenues | | 449 | | | 325 | | | 435 | | | 38% | | 3% |
| Interest expense | | (3) | | | (2) | | | (2) | | | 50% | | 50% |
| Net revenues | | 446 | | | 323 | | | 433 | | | 38% | | 3% |
| Non-interest expenses: | | | | | | | | | | |
| Compensation, commissions and benefits | | 256 | | | 195 | | | 259 | | | 31% | | (1)% |
Acquisition-related expenses (3) | | 3 | | | — | | | — | | | NM | | NM |
| Other non-compensation expenses | | 72 | | | 66 | | | 69 | | | 9% | | 4% |
| Total non-interest expenses | | 331 | | | 261 | | | 328 | | | 27% | | 1% |
| Pre-tax income | | $ | 115 | | | $ | 62 | | | $ | 105 | | | 85% | | 10% |
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | |
| | Nine months ended |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | % change |
| Revenues: | | | | | | |
| Brokerage revenues: | | | | | | |
| Fixed income | | $ | 397 | | | $ | 296 | | | 34% |
| Equity | | 112 | | | 115 | | | (3)% |
| Total brokerage revenues | | 509 | | | 411 | | | 24% |
| Investment banking: | | | | | | |
| Merger & acquisition and advisory | | 424 | | | 192 | | | 121% |
| Equity underwriting | | 196 | | | 117 | | | 68% |
| Debt underwriting | | 126 | | | 90 | | | 40% |
| Total investment banking | | 746 | | | 399 | | | 87% |
| Interest income | | 12 | | | 22 | | | (45)% |
| Tax credit fund revenues | | 57 | | | 50 | | | 14% |
| All other | | 14 | | | 13 | | | 8% |
| Total revenues | | 1,338 | | | 895 | | | 49% |
| Interest expense | | (7) | | | (14) | | | (50)% |
| Net revenues | | 1,331 | | | 881 | | | 51% |
| Non-interest expenses: | | | | | | |
| Compensation, commissions and benefits | | 767 | | | 545 | | | 41% |
Acquisition-related expenses (3) | | 3 | | | — | | | NM |
| Other non-compensation expenses | | 212 | | | 217 | | | (2)% |
| Total non-interest expenses | | 982 | | | 762 | | | 29% |
| Pre-tax income | | $ | 349 | | | $ | 119 | | | 193% |
Please refer to the footnotes at the end of this press release for additional information.
14
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Segment Results |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Management |
| | | | | | | | | | |
| | Three months ended | | % change from |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Revenues: | | | | | | | | | | |
| Asset management and related administrative fees: | | | | | | | | | | |
| Managed programs | | $ | 148 | | | $ | 109 | | | $ | 137 | | | 36% | | 8% |
| Administration and other | | 70 | | | 48 | | | 64 | | | 46% | | 9% |
| Total asset management and related administrative fees | | 218 | | | 157 | | | 201 | | | 39% | | 8% |
| Account and service fees | | 4 | | | 3 | | | 5 | | | 33% | | (20)% |
| All other | | 3 | | | 3 | | | 3 | | | — | | — |
| Net revenues | | 225 | | | 163 | | | 209 | | | 38% | | 8% |
| Non-interest expenses: | | | | | | | | | | |
| Compensation, commissions and benefits | | 43 | | | 44 | | | 50 | | | (2)% | | (14)% |
| Non-compensation expenses | | 77 | | | 59 | | | 72 | | | 31% | | 7% |
| Total non-interest expenses | | 120 | | | 103 | | | 122 | | | 17% | | (2)% |
| Pre-tax income | | $ | 105 | | | $ | 60 | | | $ | 87 | | | 75% | | 21% |
| | | | | | | | | | | | | | | | | | | | |
| | Nine months ended |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | % change |
| Revenues: | | | | | | |
| Asset management and related administrative fees: | | | | | | |
| Managed programs | | $ | 414 | | | $ | 358 | | | 16% |
| Administration and other | | 193 | | | 152 | | | 27% |
| Total asset management and related administrative fees | | 607 | | | 510 | | | 19% |
| Account and service fees | | 13 | | | 12 | | | 8% |
| All other | | 9 | | | 9 | | | — |
| Net revenues | | 629 | | | 531 | | | 18% |
| Non-interest expenses: | | | | | | |
| Compensation, commissions and benefits | | 138 | | | 134 | | | 3% |
| Non-compensation expenses | | 216 | | | 191 | | | 13% |
| Total non-interest expenses | | 354 | | | 325 | | | 9% |
| Pre-tax income | | $ | 275 | | | $ | 206 | | | 33% |
Please refer to the footnotes at the end of this press release for additional information.
15
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Segment Results |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Raymond James Bank |
| | | | |
| | Three months ended | | % change from |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Revenues: | | | | | | | | | | |
| Interest income | | $ | 172 | | | $ | 181 | | | $ | 165 | | | (5)% | | 4% |
| Interest expense | | (11) | | | (12) | | | (10) | | | (8)% | | 10% |
| Net interest income | | 161 | | | 169 | | | 155 | | | (5)% | | 4% |
| All other | | 8 | | | 9 | | | 5 | | | (11)% | | 60% |
| Net revenues | | 169 | | | 178 | | | 160 | | | (5)% | | 6% |
| Non-interest expenses: | | | | | | | | | | |
| Compensation and benefits | | 13 | | | 13 | | | 13 | | | — | | — |
| Non-compensation expenses: | | | | | | | | | | |
Bank loan provision/(benefit) for credit losses (7) | | (19) | | | 81 | | | (32) | | | NM | | NM |
RJBDP fees to Private Client Group (12) | | 47 | | | 43 | | | 44 | | | 9% | | 7% |
| All other | | 24 | | | 27 | | | 24 | | | (11)% | | — |
| Total non-compensation expenses | | 52 | | | 151 | | | 36 | | | (66)% | | 44% |
| Total non-interest expenses | | 65 | | | 164 | | | 49 | | | (60)% | | 33% |
| Pre-tax income | | $ | 104 | | | $ | 14 | | | $ | 111 | | | 643% | | (6)% |
| | | | | | | | | | | | | | | | | | | | |
| | Nine months ended |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | % change |
| Revenues: | | | | | | |
| Interest income | | $ | 505 | | | $ | 635 | | | (20)% |
| Interest expense | | (32) | | | (51) | | | (37)% |
| Net interest income | | 473 | | | 584 | | | (19)% |
| All other | | 23 | | | 20 | | | 15% |
| Net revenues | | 496 | | | 604 | | | (18)% |
| Non-interest expenses: | | | | | | |
| Compensation and benefits | | 38 | | | 38 | | | — |
| Non-compensation expenses: | | | | | | |
Bank loan provision/(benefit) for credit losses (7) | | (37) | | | 188 | | | NM |
RJBDP fees to Private Client Group (12) | | 134 | | | 138 | | | (3)% |
| All other | | 75 | | | 77 | | | (3)% |
| Total non-compensation expenses | | 172 | | | 403 | | | (57)% |
| Total non-interest expenses | | 210 | | | 441 | | | (52)% |
| Pre-tax income | | $ | 286 | | | $ | 163 | | | 75% |
Please refer to the footnotes at the end of this press release for additional information.
16
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Segment Results |
| Fiscal Third Quarter of 2021 | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other |
| | | | | | | | | | |
| | Three months ended | | % change from |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Revenues: | | | | | | | | | | |
| Interest income | | $ | — | | | $ | 3 | | | $ | 3 | | | (100)% | | (100)% |
Gains/(losses) on private equity investments (6) | | 24 | | | 1 | | | 8 | | | 2,300% | | 200% |
| All other | | 4 | | | 2 | | | 2 | | | 100% | | 100% |
| Total revenues | | 28 | | | 6 | | | 13 | | | 367% | | 115% |
| Interest expense | | (26) | | | (26) | | | (25) | | | — | | 4% |
| Net revenues | | 2 | | | (20) | | | (12) | | | NM | | NM |
| Non-interest expenses: | | | | | | | | | | |
Compensation and all other (6) | | 34 | | | 9 | | | 36 | | | 278% | | (6)% |
| | | | | | | | | | |
Losses on extinguishment of debt (2) | | 98 | | | — | | | — | | | NM | | NM |
Acquisition-related expenses (3) | | 4 | | | — | | | — | | | NM | | NM |
| Total non-interest expenses | | 136 | | | 9 | | | 36 | | | 1,411% | | 278% |
| Pre-tax loss | | $ | (134) | | | $ | (29) | | | $ | (48) | | | (362)% | | (179)% |
| | | | | | | | | | | | | | | | | | | | |
| | Nine months ended |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | % change |
| Revenues: | | | | | | |
| Interest income | | $ | 6 | | | $ | 27 | | | (78)% |
Gains/(losses) on private equity investments (6) | | 56 | | | (40) | | | NM |
| All other | | 7 | | | 4 | | | 75% |
| Total revenues | | 69 | | | (9) | | | NM |
| Interest expense | | (75) | | | (63) | | | 19% |
| Net revenues | | (6) | | | (72) | | | 92% |
| Non-interest expenses: | | | | | | |
Compensation and all other (6) | | 96 | | | 34 | | | 182% |
| | | | | | |
Losses on extinguishment of debt (2) | | 98 | | | — | | | NM |
Acquisition-related expenses (3) | | 6 | | | — | | | NM |
| Total non-interest expenses | | 200 | | | 34 | | | 488% |
| Pre-tax loss | | $ | (206) | | | $ | (106) | | | (94)% |
Please refer to the footnotes at the end of this press release for additional information.
17
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Raymond James Bank Selected Key Metrics |
| Fiscal Third Quarter of 2021 | (Unaudited) |
The following metrics are attributable to our Raymond James Bank banking subsidiary, which is a component of our Raymond James Bank segment.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of | | % change from |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
| Total assets | | $ | 34,576 | | | $ | 29,066 | | | $ | 33,221 | | | 19% | | 4% |
| Total equity | | $ | 2,532 | | | $ | 2,279 | | | $ | 2,409 | | | 11% | | 5% |
| Bank loans, net | | $ | 23,896 | | | $ | 21,223 | | | $ | 22,879 | | | 13% | | 4% |
Bank loan allowance for credit losses (7) | | $ | 322 | | | $ | 334 | | | $ | 345 | | | (4)% | | (7)% |
Bank loan allowance for credit losses as a % of loans held for investment (7) | | 1.34 | % | | 1.56 | % | | 1.50 | % | | | | |
| Total nonperforming assets | | $ | 43 | | | $ | 23 | | | $ | 31 | | | 87% | | 39% |
| Nonperforming assets as a % of total assets | | 0.12 | % | | 0.08 | % | | 0.09 | % | | | | |
| Total criticized loans | | $ | 980 | | | $ | 733 | | | $ | 1,001 | | | 34% | | (2)% |
| Criticized loans as a % of loans held for investment | | 4.07 | % | | 3.41 | % | | 4.35 | % | | | | |
| | | | | | | | | | |
| Capital ratios: | | | | | | | | | | |
| Tier 1 capital | | 13.5 | % | (4) | 12.8 | % | | 13.1 | % | | | | |
| Total capital | | 14.7 | % | (4) | 14.1 | % | | 14.4 | % | | | | |
| Tier 1 leverage | | 7.5 | % | (4) | 7.6 | % | | 7.5 | % | | | | |
| | | | | | | | | | |
| | Three months ended | | % change from |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | June 30,
2020 | | March 31,
2021 |
Bank loan provision/(benefit) for credit losses (7) | | $ | (19) | | | $ | 81 | | | $ | (32) | | | NM | | NM |
| | | | | | | | | | |
| Net charge-offs: | | | | | | | | | | |
| Charge-offs related to loan sales | | $ | 1 | | | $ | 61 | | | $ | 2 | | | (98)% | | (50)% |
| All other | | 3 | | | 11 | | | — | | | (73)% | | NM |
| Total net charge-offs | | $ | 4 | | | $ | 72 | | | $ | 2 | | | (94)% | | 100% |
| | | | | | | | | | |
| Net interest margin (net yield on interest-earning assets) | | 1.92 | % | | 2.29 | % | | 1.94 | % | | | | |
| | | | | | | | | | |
| | Nine months ended | | | | |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | % change | | | | |
Bank loan provision/(benefit) for credit losses (7) | | $ | (37) | | | $ | 188 | | | NM | | | | |
| | | | | | | | | | |
| Net charge-offs: | | | | | | | | | | |
| Charge-offs related to loan sales | | $ | 3 | | | $ | 61 | | | (95)% | | | | |
| All other | | 3 | | | 11 | | | (73)% | | | | |
| Total net charge-offs | | $ | 6 | | | $ | 72 | | | (92)% | | | | |
| | | | | | | | | | |
| Net interest margin (net yield on interest-earning assets) | | 1.96 | % | | 2.82 | % | | | | | | |
Please refer to the footnotes at the end of this press release for additional information.
18
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures |
| Fiscal Third Quarter of 2021 | (Unaudited) |
Reconciliation of non-GAAP financial measures to GAAP financial measures
We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non-GAAP financial measures have been separately identified in this document. We believe certain of these non-GAAP financial measures provides useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a comparison of current- and prior-period results. We believe that return on tangible common equity and tangible book value per share are meaningful to investors as they facilitate comparisons of our results to the results of other companies. In the following tables, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following tables provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures for those periods which include non-GAAP adjustments.
| | | | | | | | | | | | | | | | | | | | |
| | | | | | Three months ended | | Nine months ended |
| $ in millions, except per share amounts | | | | | | June 30,
2021 | | June 30,
2021 | | |
| Net income | | | | | | $ | 307 | | | $ | 974 | | | |
Non-GAAP adjustments: | | | | | | | | | | |
Losses on extinguishment of debt (2) | | | | | | 98 | | | 98 | | | |
Acquisition-related expenses (3) | | | | | | 7 | | | 9 | | | |
| | | | | | | | | | |
| Pre-tax impact of non-GAAP adjustments | | | | | | 105 | | | 107 | | | |
| Tax effect of non-GAAP adjustments | | | | | | (26) | | | (26) | | | |
| Total non-GAAP adjustments, net of tax | | | | | | 79 | | | 81 | | | |
| Adjusted net income | | | | | | $ | 386 | | | $ | 1,055 | | | |
| | | | | | | | | | |
| Pre-tax income | | | | | | $ | 385 | | | $ | 1,231 | | | |
| Pre-tax impact of non-GAAP adjustments (as detailed above) | | | | | | 105 | | | 107 | | | |
| Adjusted pre-tax income | | | | | | $ | 490 | | | $ | 1,338 | | | |
| | | | | | | | | | |
Pre-tax margin (10) | | | | | | 15.6 | % | | 17.4 | % | | |
Non-GAAP adjustments: | | | | | | | | | | |
Losses on extinguishment of debt (2) | | | | | | 3.9 | % | | 1.4 | % | | |
Acquisition-related expenses (3) | | | | | | 0.3 | % | | 0.1 | % | | |
| | | | | | | | | | |
| Total non-GAAP adjustments | | | | | | 4.2 | % | | 1.5 | % | | |
Adjusted pre-tax margin (10) | | | | | | 19.8 | % | | 18.9 | % | | |
| | | | | | | | | | |
Earnings per common share: (5) | | | | | | | | | | |
| Basic | | | | | | $ | 2.24 | | | $ | 7.09 | | | |
Non-GAAP adjustments: | | | | | | | | | | |
Losses on extinguishment of debt (2) | | | | | | 0.71 | | | 0.71 | | | |
Acquisition-related expenses (3) | | | | | | 0.05 | | | 0.07 | | | |
| | | | | | | | | | |
| Tax effect of non-GAAP adjustments | | | | | | (0.19) | | | (0.19) | | | |
| Total non-GAAP adjustments, net of tax | | | | | | 0.57 | | | 0.59 | | | |
| Adjusted basic | | | | | | $ | 2.81 | | | $ | 7.68 | | | |
| | | | | | | | | | |
| Diluted | | | | | | $ | 2.18 | | | $ | 6.92 | | | |
Non-GAAP adjustments: | | | | | | | | | | |
Losses on extinguishment of debt (2) | | | | | | 0.69 | | | 0.70 | | | |
Acquisition-related expenses (3) | | | | | | 0.05 | | | 0.06 | | | |
| | | | | | | | | | |
| Tax effect of non-GAAP adjustments | | | | | | (0.18) | | | (0.18) | | | |
| Total non-GAAP adjustments, net of tax | | | | | | 0.56 | | | 0.58 | | | |
| Adjusted diluted | | | | | | $ | 2.74 | | | $ | 7.50 | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Please refer to the footnotes at the end of this press release for additional information.
19
| | | | | |
| RAYMOND JAMES FINANCIAL, INC. | Non-GAAP Financial Measures |
| Fiscal Third Quarter of 2021 | (Unaudited) |
Reconciliation of non-GAAP financial measures to GAAP financial measures
(Continued from previous page)
| | | | | | | | | | | | | | | | | | | | |
| Book value per share | | As of |
| $ in millions, except per share amounts | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 |
| Total equity attributable to Raymond James Financial, Inc. | | $ | 7,863 | | | $ | 6,965 | | | $ | 7,592 | |
Less non-GAAP adjustments: | | | | | | |
| Goodwill and identifiable intangible assets, net | | 862 | | | 602 | | | 868 | |
| Deferred tax liabilities, net | | (56) | | | (33) | | | (56) | |
| Tangible common equity attributable to Raymond James Financial, Inc. | | $ | 7,057 | | | $ | 6,396 | | | $ | 6,780 | |
| Common shares outstanding | | 136.9 | | | 137.0 | | | 137.2 | |
Book value per share (8) | | $ | 57.44 | | | $ | 50.84 | | | $ | 55.34 | |
Tangible book value per share (8) | | $ | 51.55 | | | $ | 46.69 | | | $ | 49.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on equity | | Three months ended | | | Nine months ended |
| $ in millions | | June 30,
2021 | | June 30,
2020 | | March 31,
2021 | | | June 30,
2021 | | June 30,
2020 |
Average equity (17) | | $ | 7,728 | | | $ | 6,882 | | | $ | 7,478 | | | | $ | 7,483 | | | $ | 6,797 | |
Impact on average equity of non-GAAP adjustments: | | | | | | | | | | | |
Losses on extinguishment of debt (2) | | 49 | | | NA | | NA | | | 25 | | | NA |
Acquisition-related expenses (3) | | 4 | | | NA | | NA | | | 2 | | | NA |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Tax effect of non-GAAP adjustments | | (13) | | | NA | | NA | | | (7) | | | NA |
Adjusted average equity (17) | | $ | 7,768 | | | NA | | NA | | | $ | 7,503 | | | NA |
| | | | | | | | | | | |
Average equity (17) | | $ | 7,728 | | | $ | 6,882 | | | $ | 7,478 | | | | $ | 7,483 | | | $ | 6,797 | |
Less: | | | | | | | | | | | |
| Average goodwill and identifiable intangible assets, net | | 865 | | | 603 | | | 851 | | | | 791 | | | 606 | |
| Average deferred tax liabilities, net | | (56) | | | (32) | | | (56) | | | | (51) | | | (30) | |
Average tangible common equity (17) | | $ | 6,919 | | | $ | 6,311 | | | $ | 6,683 | | | | $ | 6,743 | | | $ | 6,221 | |
Impact on average equity of non-GAAP adjustments: | | | | | | | | | | | |
Losses on extinguishment of debt (2) | | 49 | | | NA | | NA | | | 25 | | | NA |
Acquisition-related expenses (3) | | 4 | | | NA | | NA | | | 2 | | | NA |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Tax effect of non-GAAP adjustments | | (13) | | | NA | | NA | | | (7) | | | NA |
Adjusted average tangible common equity (17) | | $ | 6,959 | | | NA | | NA | | | $ | 6,763 | | | NA |
| | | | | | | | | | | |
Return on equity (9) | | 15.9 | % | | 10.0 | % | | 19.0 | % | | | 17.4 | % | | 11.9 | % |
Adjusted return on equity (9) | | 19.9 | % | | NA | | NA | | | 18.7 | % | | NA |
Return on tangible common equity (9) | | 17.7 | % | | 10.9 | % | | 21.2 | % | | | 19.3 | % | | 13.1 | % |
Adjusted return on tangible common equity (9) | | 22.2 | % | | NA | | NA | | | 20.8 | % | | NA |
Please refer to the footnotes at the end of this press release for additional information.
20
RAYMOND JAMES FINANCIAL, INC.
Fiscal Third Quarter of 2021 Footnotes
| | | | | | | | |
| (1) | | These are non-GAAP financial measures. See the schedules on the previous pages for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures and for more information on these measures. There were no non-GAAP adjustments to earnings for the three months ended June 30, 2020 and March 31, 2021 and the nine months ended June 30, 2020; therefore percent changes for earnings-related non-GAAP financial measures are calculated based on non-GAAP financial measures for the current periods as compared to GAAP results for the comparative periods. |
| | |
| (2) | | Losses on extinguishment of debt as presented in the Condensed Consolidated Statements of Income include make-whole premiums, the accelerated amortization of debt issuance costs, and certain legal and other professional fees associated with the redemptions of our $250 million of 5.625% senior notes due 2024 and our $500 million of 3.625% senior notes due 2026 which occurred during our fiscal third quarter of 2021. |
| | |
| (3) | | Acquisition-related expenses primarily included professional and integration expenses associated with our acquisitions of NWPS Holdings, Inc. and Financo, which were completed in December 2020 and March 2021, respectively, and Cebile Capital, announced in May 2021, which were included in our Other segment. Acquisition-related expenses for the three and nine months ended June 30, 2021 also included amortization expense related to intangible assets with short-term useful lives associated with our Financo acquisition, which was included in our Capital Markets segment. |
| | |
| (4) | | Estimated. |
| | |
| (5) | | Earnings per common share is computed by dividing net income (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period or, in the case of adjusted earnings per common share, computed by dividing adjusted net income (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period. |
| | |
| (6) | | Other revenues included $24 million, $1 million and $8 million of private equity gains for the three months ended June 30, 2021, June 30, 2020 and March 31, 2021, respectively, which were included in our Other segment. Of these amounts, $10 million of the gains for the three months ended June 30, 2021 and an insignificant amount of the gains for each of the three months ended June 30, 2020 and March 31, 2021 were attributable to noncontrolling interests and were offset in Other expenses. Other revenues included $56 million of private equity gains and $40 million of private equity losses for the nine months ended June 30, 2021 and 2020, respectively, which were included in our Other segment. Of these amounts, approximately $20 million of the gains and $23 million of the losses for the nine months ended June 30, 2021 and June 30, 2020, respectively, were attributable to noncontrolling interests and were offset in Other expenses. |
| | |
| (7) | | The allowances for credit losses as of June 30, 2021 and March 31, 2021 were determined under the current expected credit loss (“CECL”) model as a result of our October 1, 2020 adoption of new accounting guidance related to the measurement of credit losses on financial instruments. The impact of adoption on October 1, 2020 resulted in an increase in our allowance for credit losses, including reserves for unfunded lending commitments, of approximately $45 million (primarily $25 million related to loans to financial advisors in the Private Client Group and approximately $10 million related to Bank loans outstanding) and a corresponding reduction in retained earnings of approximately $35 million, net of tax. The Bank loan provision/(benefit) for credit losses of $(19) million and $(32) million for the three months ended June 30, 2021 and March 31, 2021, respectively, and $(37) million for the nine months ended June 30, 2021, were determined under the CECL model and represented the provision/(benefit) for credit losses post the CECL adoption date. |
| | |
| (8) | | Book value per share is computed by dividing total equity attributable to Raymond James Financial, Inc. by the number of common shares outstanding at the end of each respective period or, in the case of tangible book value per share, computed by dividing tangible common equity by the number of common shares outstanding at the end of each respective period. Tangible common equity is defined as total equity attributable to Raymond James Financial, Inc. less goodwill and intangible assets, net of related deferred taxes. |
| | |
| (9) | | Return on equity is computed by dividing annualized net income by average equity for each respective period or, in the case of return on tangible common equity, computed by dividing annualized net income by average tangible common equity for each respective period. Adjusted return on equity is computed by dividing annualized adjusted net income by adjusted average equity for each respective period, or in the case of adjusted return on tangible common equity, computed by dividing annualized adjusted net income by adjusted average tangible common equity for each respective period. |
| | |
| (10) | | Pre-tax margin is computed by dividing pre-tax income by net revenues for each respective period or, in the case of adjusted pre-tax margin, computed by dividing adjusted pre-tax income by net revenues for each respective period. |
| | |
| (11) | | Total compensation ratio is computed by dividing compensation, commissions and benefits expense by net revenues for each respective period. |
| | |
| (12) | | We earn fees from RJBDP, a multi-bank sweep program in which clients’ cash deposits in their brokerage accounts are swept into interest-bearing deposit accounts at Raymond James Bank and various third-party banks. Fees earned by the Private Client Group on Raymond James Bank deposits are eliminated in consolidation. |
| | |
| (13) | | Average yield on RJBDP - third-party banks is computed by dividing annualized RJBDP fees - third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balances at third-party banks. |
| | |
| (14) | | As a result of our adoption of CECL, we have redefined certain of our loan portfolio segments to align with the new methodology applied in determining the allowance for credit losses, including the combination of the CRE and CRE construction loan portfolios and the separation of loans to REITs into a separate portfolio segment (previously included in CRE loans and C&I loans). Prior period loan portfolio segments have been revised to conform to the current presentation. |
| | |
| (15) | | The average yield is presented on a tax-equivalent basis for each respective period. |
| | |
| (16) | | The Other segment includes the results of our private equity investments, interest income on certain corporate cash balances, losses on extinguishment of debt, acquisition-related expenses and certain corporate overhead costs of Raymond James Financial, Inc., including the interest costs on our public debt. |
| | |
| (17) | | Average equity is computed by adding total equity attributable to Raymond James Financial, Inc. as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two. For the year-to-date period, average equity is computed by adding the total equity attributable to Raymond James Financial, Inc. as of each quarter-end date during the indicated period to the beginning of year total, and dividing by four, or in the case of average tangible common equity, computed by adding tangible common equity as of each quarter-end date during the indicated period to the beginning of year total, and dividing by four. Adjusted average equity is computed by adjusting for the impact on average equity of the non-GAAP adjustments, as applicable for each respective period. Adjusted average tangible common equity is computed by adjusting for the impact on average tangible common equity of the non-GAAP adjustments, as applicable for each respective period. |
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