COVER
COVER - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Nov. 17, 2022 | Mar. 31, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2022 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-9109 | ||
Entity Registrant Name | RAYMOND JAMES FINANCIAL, INC. | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Tax Identification Number | 59-1517485 | ||
Entity Address, Address Line One | 880 Carillon Parkway | ||
Entity Address, City or Town | St. Petersburg | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33716 | ||
City Area Code | 727 | ||
Local Phone Number | 567-1000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 20,595,928,727 | ||
Entity Common Stock, Shares Outstanding | 215,063,590 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement to be delivered to shareholders in connection with the Annual Meeting of Shareholders to be held February 23, 2023 are incorporated by reference into Part III. | ||
Entity Central Index Key | 0000720005 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, $.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | RJF | ||
Security Exchange Name | NYSE | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | RJF PrA | ||
Security Exchange Name | NYSE | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | RJF PrB | ||
Security Exchange Name | NYSE |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Sep. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | Tampa, Florida |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Assets: | ||
Cash and cash equivalents | $ 6,178 | $ 7,201 |
Assets segregated for regulatory purposes and restricted cash | 8,481 | 11,348 |
Collateralized agreements | 704 | 480 |
Financial instruments, at fair value: | ||
Trading assets ($1,188 and $326 pledged as collateral) | 1,270 | 610 |
Available-for-sale securities ($74 and $20 pledged as collateral) | 9,885 | 8,315 |
Derivative assets | 188 | 255 |
Other investments ($14 and $22 pledged as collateral) | 292 | 357 |
Brokerage client receivables, net | 2,934 | 2,831 |
Other receivables, net | 1,615 | 999 |
Bank loans, net | 43,239 | 24,994 |
Loans to financial advisors, net | 1,152 | 1,057 |
Deferred income taxes, net | 630 | 305 |
Goodwill and identifiable intangible assets, net | 1,931 | 882 |
Other assets | 2,452 | 2,257 |
Total assets | 80,951 | 61,891 |
Liabilities and shareholders’ equity: | ||
Bank deposits | 51,357 | 32,495 |
Collateralized financings | 466 | 277 |
Financial instrument liabilities, at fair value: | ||
Trading liabilities | 836 | 176 |
Derivative liabilities | 530 | 228 |
Brokerage client payables | 11,446 | 13,991 |
Accrued compensation, commissions and benefits | 1,787 | 1,825 |
Other payables | 1,768 | 1,701 |
Other borrowings | 1,291 | 858 |
Senior notes payable | 2,038 | 2,037 |
Total liabilities | 71,519 | 53,588 |
Commitments and contingencies (see Note 19) | ||
Shareholders’ equity | ||
Preferred stock | 120 | 0 |
Common stock; $.01 par value; 650,000,000 shares authorized, 248,018,564 shares issued, and 215,122,523 shares outstanding as of September 30, 2022; 350,000,000 shares authorized, 239,062,254 shares issued, and 205,738,821 shares outstanding as of September 30, 2021 | 2 | 2 |
Additional paid-in capital | 2,987 | 2,088 |
Retained earnings | 8,843 | 7,633 |
Treasury stock, at cost; 32,896,041 and 33,323,433 common shares as of September 30, 2022 and 2021, respectively | (1,512) | (1,437) |
Accumulated other comprehensive loss | (982) | (41) |
Total equity attributable to Raymond James Financial, Inc. | 9,458 | 8,245 |
Noncontrolling interests | (26) | 58 |
Total shareholders’ equity | 9,432 | 8,303 |
Total liabilities and shareholders’ equity | $ 80,951 | $ 61,891 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Trading assets | $ 1,270 | $ 610 |
Available-for-sale securities | 9,885 | 8,315 |
Other investments | $ 292 | $ 357 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 650,000,000 | 350,000,000 |
Common stock, issued (in shares) | 248,018,564 | 239,062,254 |
Common stock, outstanding (in shares) | 215,122,523 | 205,738,821 |
Treasury stock (in shares) | 32,896,041 | 33,323,433 |
Asset pledged as collateral | ||
Trading assets | $ 1,188 | $ 326 |
Available-for-sale securities | 74 | 20 |
Other investments | $ 14 | $ 22 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | |||
Principal transactions | $ 527 | $ 561 | $ 488 |
Interest income | 1,508 | 823 | 1,000 |
Total revenues | 11,308 | 9,910 | 8,168 |
Interest expense | (305) | (150) | (178) |
Net revenues | 11,003 | 9,760 | 7,990 |
Non-interest expenses: | |||
Compensation, commissions and benefits | 7,329 | 6,584 | 5,465 |
Non-compensation expenses: | |||
Communications and information processing | 506 | 429 | 393 |
Occupancy and equipment | 252 | 232 | 225 |
Business development | 186 | 111 | 134 |
Investment sub-advisory fees | 152 | 130 | 101 |
Professional fees | 131 | 122 | 91 |
Bank loan provision/(benefit) for credit losses | 100 | (32) | 233 |
Losses on extinguishment of debt | 0 | 98 | 0 |
Reduction in workforce expenses | 0 | 0 | 46 |
Other | 325 | 295 | 250 |
Total non-compensation expenses | 1,652 | 1,385 | 1,473 |
Total non-interest expenses | 8,981 | 7,969 | 6,938 |
Pre-tax income | 2,022 | 1,791 | 1,052 |
Provision for income taxes | 513 | 388 | 234 |
Net income | 1,509 | 1,403 | 818 |
Preferred stock dividends | 4 | 0 | 0 |
Net income available to common shareholders, basic | 1,505 | 1,403 | 818 |
Net income available to common shareholders, diluted | $ 1,505 | $ 1,403 | $ 818 |
Earnings per common share – basic (in usd per share) | $ 7.16 | $ 6.81 | $ 3.96 |
Earnings per common share – diluted (in usd per share) | $ 6.98 | $ 6.63 | $ 3.88 |
Weighted-average common shares outstanding - basic (in shares) | 209.9 | 205.7 | 206.4 |
Weighted-average common and common equivalents shares outstanding - diluted (in shares) | 215.3 | 211.2 | 210.3 |
Net income | $ 1,509 | $ 1,403 | $ 818 |
Other comprehensive income/(loss), net of tax: | |||
Available-for-sale securities | (897) | (94) | 68 |
Currency translations, net of the impact of net investment hedges | (114) | 16 | 0 |
Cash flow hedges | 70 | 26 | (34) |
Total other comprehensive income/(loss), net of tax | (941) | (52) | 34 |
Total comprehensive income | 568 | 1,351 | 852 |
Asset management and related administrative fees | |||
Revenues: | |||
Revenue from contract with customer | 5,563 | 4,868 | 3,834 |
Total brokerage revenues | |||
Revenues: | |||
Total brokerage revenues | 2,116 | 2,212 | 1,956 |
Securities commissions | |||
Revenues: | |||
Revenue from contract with customer | 1,589 | 1,651 | 1,468 |
Account and service fees | |||
Revenues: | |||
Revenue from contract with customer | 833 | 635 | 624 |
Investment banking | |||
Revenues: | |||
Revenue from contract with customer | 1,100 | 1,143 | 650 |
Other | |||
Revenues: | |||
Revenue from contract with customer | $ 188 | $ 229 | $ 104 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Preferred stock | Common stock, par value $.01 per share | Additional paid-in capital | Retained earnings | Retained earnings Cumulative adjustments for changes in accounting principles | Treasury stock | Accumulated other comprehensive (loss) income | Total equity attributable to Raymond James Financial, Inc. | Noncontrolling interests |
Balance, beginning of year at Sep. 30, 2019 | $ 0 | $ 2 | $ 1,938 | $ 5,874 | $ 0 | $ (1,210) | $ (23) | $ 62 | ||
Changes in Shareholders' Equity: | ||||||||||
Stock issued for TriState Capital acquisition | 0 | 0 | ||||||||
Restricted stock awards issued for TriState Capital acquisition | 0 | |||||||||
Employee stock purchases | 36 | |||||||||
(Distributions) reissuances due to vesting of restricted stock units and exercise of stock options | (80) | 93 | ||||||||
Share-based compensation amortization | 113 | |||||||||
Issuance of shares for stock split | 0 | 0 | ||||||||
Other | 0 | 0 | ||||||||
Net income attributable to Raymond James Financial, Inc. | $ 818 | 818 | ||||||||
Common and preferred stock cash dividends declared (see Note 20) | (208) | |||||||||
Purchases/surrenders | (273) | |||||||||
Other comprehensive income/(loss), net of tax | 34 | 34 | ||||||||
Net income/(loss) attributable to noncontrolling interests | (26) | |||||||||
Deconsolidations and sales | 26 | |||||||||
Balance, end of year at Sep. 30, 2020 | 7,176 | 0 | 2 | 2,007 | 6,484 | (35) | (1,390) | 11 | 62 | |
Changes in Shareholders' Equity: | ||||||||||
Total equity attributable to Raymond James Financial, Inc. | $ 7,114 | |||||||||
Stock issued for TriState Capital acquisition | 0 | 0 | ||||||||
Restricted stock awards issued for TriState Capital acquisition | 0 | |||||||||
Employee stock purchases | 32 | |||||||||
(Distributions) reissuances due to vesting of restricted stock units and exercise of stock options | (77) | 81 | ||||||||
Share-based compensation amortization | 126 | |||||||||
Issuance of shares for stock split | 1 | (1) | ||||||||
Other | (1) | 1 | ||||||||
Net income attributable to Raymond James Financial, Inc. | 1,403 | 1,403 | ||||||||
Common and preferred stock cash dividends declared (see Note 20) | (219) | |||||||||
Purchases/surrenders | (128) | |||||||||
Other comprehensive income/(loss), net of tax | (52) | (52) | ||||||||
Net income/(loss) attributable to noncontrolling interests | 23 | |||||||||
Deconsolidations and sales | (27) | |||||||||
Balance, end of year at Sep. 30, 2021 | 8,303 | 0 | 2 | 2,088 | 7,633 | $ 0 | (1,437) | (41) | 58 | |
Changes in Shareholders' Equity: | ||||||||||
Total equity attributable to Raymond James Financial, Inc. | 8,245 | 8,245 | ||||||||
Stock issued for TriState Capital acquisition | 120 | 778 | ||||||||
Restricted stock awards issued for TriState Capital acquisition | 28 | |||||||||
Employee stock purchases | 42 | |||||||||
(Distributions) reissuances due to vesting of restricted stock units and exercise of stock options | (135) | 98 | ||||||||
Share-based compensation amortization | 186 | |||||||||
Issuance of shares for stock split | 0 | 0 | ||||||||
Other | 0 | 0 | ||||||||
Net income attributable to Raymond James Financial, Inc. | 1,509 | 1,509 | ||||||||
Common and preferred stock cash dividends declared (see Note 20) | (299) | |||||||||
Purchases/surrenders | (173) | |||||||||
Other comprehensive income/(loss), net of tax | (941) | (941) | ||||||||
Net income/(loss) attributable to noncontrolling interests | (1) | |||||||||
Deconsolidations and sales | (83) | |||||||||
Balance, end of year at Sep. 30, 2022 | 9,432 | $ 120 | $ 2 | $ 2,987 | $ 8,843 | $ (1,512) | $ (982) | $ (26) | ||
Changes in Shareholders' Equity: | ||||||||||
Total equity attributable to Raymond James Financial, Inc. | $ 9,458 | $ 9,458 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Sep. 30, 2022 | Feb. 28, 2022 | Sep. 30, 2021 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 1,509 | $ 1,403 | $ 818 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 145 | 134 | 119 |
Deferred income taxes, net | (16) | (37) | (39) |
Premium and discount amortization on available-for-sale securities and bank loans and net unrealized gain/loss on other investments | 23 | 15 | 57 |
Provisions/(benefits) for credit losses and legal and regulatory proceedings | 111 | (20) | 257 |
Share-based compensation expense | 192 | 132 | 120 |
Unrealized (gain)/loss on company-owned life insurance policies, net of expenses | 174 | (150) | (46) |
Losses on extinguishment of debt | 0 | 98 | 0 |
Other | 49 | 66 | 92 |
Net change in: | |||
Assets segregated for regulatory purposes excluding cash and cash equivalents | 2,100 | (2,100) | 0 |
Collateralized agreements, net of collateralized financings | (37) | (29) | (55) |
Loans provided to financial advisors, net of repayments | (120) | (90) | (49) |
Brokerage client receivables and other receivables, net | (203) | (420) | 127 |
Trading instruments, net | 48 | (141) | 150 |
Derivative instruments, net | 479 | 53 | (51) |
Other assets | (126) | 16 | (13) |
Brokerage client payables and other payables | (4,213) | 7,306 | 2,505 |
Accrued compensation, commissions and benefits | (76) | 416 | 70 |
Purchases and originations of loans held for sale, net of proceeds from sales of securitizations and loans held for sale | 33 | (5) | 11 |
Net cash provided by operating activities | 72 | 6,647 | 4,073 |
Cash flows from investing activities: | |||
Increase in bank loans, net | (7,235) | (4,027) | (1,136) |
Proceeds from sales of loans held for investment | 213 | 287 | 634 |
Purchases of available-for-sale securities | (3,069) | (4,218) | (5,710) |
Available-for-sale securities maturations, repayments and redemptions | 1,712 | 2,181 | 1,188 |
Proceeds from sales of available-for-sale securities | 52 | 969 | 222 |
Cash and cash equivalents acquired in business acquisitions, including those segregated for regulatory purposes, net of cash paid for acquisitions | 1,461 | (266) | (5) |
Additions to property and equipment | (91) | (74) | (124) |
Investment in note receivable | (125) | 0 | 0 |
(Purchases)/sales of other investments, net | 24 | 27 | 5 |
Other investing activities, net | (93) | (19) | (59) |
Net cash used in investing activities | (7,151) | (5,140) | (4,985) |
Cash flows from financing activities: | |||
Proceeds from senior notes issuances, net of debt issuance costs paid | 0 | 737 | 494 |
Extinguishment of senior notes payable | 0 | (844) | 0 |
Increase in bank deposits | 6,269 | 5,694 | 4,520 |
Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements | (216) | (150) | (291) |
Dividends on preferred and common stock | (277) | (218) | (205) |
Exercise of stock options and employee stock purchases | 52 | 53 | 62 |
Proceeds from Federal Home Loan Bank advances | 1,025 | 0 | 850 |
Repayments of Federal Home Loan Bank advances and other borrowed funds | (967) | (31) | (855) |
Other financing, net | (7) | (9) | (1) |
Net cash provided by financing activities | 5,879 | 5,232 | 4,574 |
Currency adjustment: | |||
Effect of exchange rate changes on cash and cash equivalents, including those segregated for regulatory purposes | (590) | 76 | 1 |
Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash | (1,790) | 6,815 | 3,663 |
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year | 16,449 | 9,634 | 5,971 |
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of year | 14,659 | 16,449 | 9,634 |
Cash and cash equivalents | 6,178 | 7,201 | 5,390 |
Cash and cash equivalents segregated for regulatory purposes and restricted cash | 8,481 | 9,248 | 4,244 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 323 | 145 | 164 |
Cash paid for income taxes, net | 524 | 437 | 246 |
Cash outflows for lease liabilities | 111 | 110 | 101 |
Non-cash right-of-use assets recorded for new and modified leases | 68 | 168 | 74 |
Restricted stock awards issued as consideration for TriState Capital acquisition | 28 | 0 | 0 |
Effective settlement of note receivable for TriState Capital acquisition | 123 | 0 | 0 |
Common stock | |||
Supplemental disclosures of cash flow information: | |||
Stock issued as consideration for TriState Capital acquisition | 778 | 0 | 0 |
Preferred stock | |||
Supplemental disclosures of cash flow information: | |||
Stock issued as consideration for TriState Capital acquisition | $ 120 | $ 0 | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION Organization Raymond James Financial, Inc. (“RJF” or the “firm”) is a financial holding company which, together with its subsidiaries, is engaged in various financial services activities, including providing investment management services to retail and institutional clients, merger & acquisition and advisory services, 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 consumer banking services, and trust services. For further information about our business segments, see Note 26 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 of this Form 10-K. 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 (“U.S.”) generally accepted accounting principles (“GAAP”) requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and 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 We reclassified acquisition and disposition-related expenses which in prior years were reported separately as “Acquisition and disposition-related expenses” on our Consolidated Statements of Income and Comprehensive Income to the respective income statement line items that align with the nature of the expenses, including reclassifications to “Compensation, commissions, and benefits,” “Professional fees,” or “Other” expenses, as appropriate. Prior years have been conformed to the current presentation. In addition to the reclassifications discussed above, certain other prior period amounts have been reclassified to conform to the current period’s presentation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recognition of non-interest revenues Revenue from contracts with customers is recognized when promised services are delivered to our customers in an amount we expect to receive in exchange for those services (i.e., the transaction price). Contracts with customers can include multiple services, which are accounted for as separate “performance obligations” if they are determined to be distinct. Our performance obligations to our customers are generally satisfied when we transfer the promised service to our customer, either at a point in time or over time. Revenue from a performance obligation transferred at a point in time is recognized at the time that the customer obtains control over the promised service. Revenue from our performance obligations satisfied over time is recognized in a manner that depicts our performance in transferring control of the service, which is generally measured based on time elapsed, as our customers receive the benefit of our services as they are provided. Payment for the majority of our services is considered to be variable consideration, as the amount of revenue we expect to receive is subject to factors outside of our control, including market conditions. Variable consideration is only included in revenue when amounts are not subject to significant reversal, which is generally when uncertainty around the amount of revenue to be received is resolved. We record deferred revenue from contracts with customers when payment is received prior to the performance of our obligation to the customer. We involve third parties in providing services to the customer for certain of our contracts with customers. We are generally deemed to control the promised services before they are transferred to the customer. Accordingly, we present the related revenues gross of the related costs. We have elected the practical expedient allowed by the accounting guidance to not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. See Note 21 for additional information on our revenues. Asset management and related administrative fees We earn asset management and related administrative fees for performing asset management, portfolio management and related administrative services to retail and institutional clients. Such fees are generally calculated as a percentage of the value of client assets in fee-based accounts in our Private Client Group (“PCG”) segment or on the net asset value of assets managed by our Raymond James Investment Management division (“Raymond James Investment Management,” formerly Carillon Tower Advisers) in our Asset Management segment. The value of these assets is impacted by market fluctuations and net inflows or outflows of assets. Fees are generally collected quarterly and are based on balances either at the beginning of the quarter or the end of the quarter, or average balances throughout the quarter. Asset management and related administrative fees are recognized on a monthly basis (i.e., over time) as the services are performed. Revenues related to fee-based accounts under administration in PCG are shared by the PCG and Asset Management segments, the amount of which depends on whether clients are invested in “managed programs” that are overseen by our Asset Management segment (i.e., included in financial assets under management (“AUM”) in the Asset Management segment) and the administrative services provided. Asset management revenues earned by Raymond James Investment Management for retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage are recorded entirely in the Asset Management segment. Brokerage revenues Securities commissions Mutual and other fund products and insurance and annuity products We earn revenues for distribution and related support services performed related to mutual and other funds, fixed and variable annuities and insurance products. Depending on the product sold, we may receive an upfront fee for our services, a trailing commission, or some combination thereof. Upfront commissions received are generally based on a fixed rate applied, as a percentage, to amounts invested or the value of the contract at the time of sale and are generally recognized at the time of sale. Trailing commissions are generally based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. Trailing commissions on eligible products are generally received monthly or quarterly in periods while our client holds the investment or holds the contract. As these trailing commissions are based on factors outside of our control, including market movements and client behavior (i.e., how long clients hold their investment, insurance policy or annuity contract), such revenue is recognized when it is probable that a significant reversal will not occur. Equities, ETFs and fixed income products We earn commissions for executing and clearing transactions for customers, primarily in listed and over-the-counter equity securities, including exchange-traded funds (“ETFs”), and options. Such revenues primarily arise from transactions for retail clients in our PCG segment, as well as services related to sales and trading activities transacted on an agency basis in our Capital Markets segment. Commissions are recognized on trade date, generally received from the customer on settlement date, and we record a receivable between the trade date and the date collected from the customer. Principal transactions Principal transactions include revenues from clients’ purchases and sales of financial instruments, including fixed income and equity securities and derivatives, in which we transact on a principal basis. We make markets in certain fixed income securities and we carry inventories of financial instruments to facilitate such transactions. The gains and losses on such inventories, both realized and unrealized, are reported as principal transactions revenues. Account and service fees Mutual fund and annuity service fees We earn servicing fees for providing sales and marketing support to third-party financial entities and for supporting the availability and distribution of their products on our platforms. We also earn servicing fees for accounting and administrative services provided to such parties. These fees, which are received monthly or quarterly, are generally based on the market value of the related assets, a fixed annual fee or, in certain cases, the number of positions in such programs, and are recognized over time as the services are performed. Raymond James Bank Deposit Program fees We earn servicing fees from various banks for administrative services we provide related to our clients’ deposits that are swept to such banks as part of the Raymond James Bank Deposit Program (“RJBDP”), our multi-bank sweep program. The amounts received from third-party banks are variable in nature and fluctuate based on client cash balances in the program, as well as the level of short-term interest rates and the interest paid to clients by the third-party banks on balances in the RJBDP. The fees are earned over time as the related administrative services are performed and are received monthly. Our PCG segment also earns servicing fees from our Bank segment, which is calculated as the greater of a base servicing fee or a net yield equivalent to the average yield that the firm would otherwise receive from third-party banks in the RJBDP. These intercompany fees, and the offsetting intercompany expense in the Bank segment, are eliminated in consolidation. Investment banking We earn revenue from investment banking transactions, including public and private equity and debt financing, merger & acquisition advisory services, and other advisory services. Underwriting revenues, which are typically deducted from the proceeds remitted to the issuer, are recognized on trade date if there is no uncertainty or contingency related to the amount to be received. Fees from merger & acquisition and advisory assignments are generally recognized at the time the services related to the transaction are completed under the terms of the engagement. Fees for merger & acquisition and advisory services are typically received upfront, as non-refundable retainer fees, and/or upon completion of a transaction as a success fee. Expenses related to investment banking transactions are generally deferred until the related revenue is recognized or the assignment is otherwise concluded. Such expenses are included in “Professional fees” on our Consolidated Statements of Income and Comprehensive Income. Cash and cash equivalents Our cash equivalents include money market funds or highly liquid investments with maturities of 3 months or less as of our date of purchase, other than those held for trading purposes. Assets segregated for regulatory purposes and restricted cash Our broker-dealers carrying client accounts are generally subject to requirements to maintain cash or qualified securities on deposit in a segregated reserve account for the exclusive benefit of their clients. Such amounts are included in “Assets segregated for regulatory purposes and restricted cash” on our Consolidated Statements of Financial Condition as of each respective period end. These amounts include cash and cash equivalents, which represent highly liquid investments with maturities of 3 months or less as of our date of purchase, and highly liquid securities, such as U.S. Treasury securities (“U.S” Treasuries”), which have maturities of greater than 3 months as of our date of purchase and are carried at fair value on our Consolidated Statements of Financial Condition. We may also from time-to-time be required to restrict cash for other corporate purposes. In addition, Raymond James Ltd. (“RJ Ltd.”) holds client Registered Retirement Savings Plan funds in trust in accordance with Canadian retirement plan regulations. Collateralized agreements and financings 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”). Reverse repurchase agreements and repurchase agreements are accounted for as collateralized agreements and collateralized financings, respectively, and are carried at contractual amounts plus accrued interest. We receive collateral with a fair value that is typically equal to or in excess of the principal amount loaned under reverse repurchase agreements to mitigate credit exposure. To ensure that the market value of the underlying collateral remains sufficient, collateral values are evaluated on a daily basis, and collateral is obtained from or returned to the counterparty when contractually required. Under repurchase agreements, we are required to post collateral in an amount that typically 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. Reverse repurchase agreements and repurchase agreements are included in “Collateralized agreements” and “Collateralized financings,” respectively, on our Consolidated Statements of Financial Condition. See Note 7 for additional information regarding collateralized agreements and financings. Securities borrowed and securities loaned We may 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 in our broker-dealer operations 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 or others we have received as collateral. Securities borrowed and securities loaned transactions are accounted for as collateralized agreements and collateralized financings, respectively, and are recorded at the amount of cash advanced or received. In securities borrowed transactions, we are required to deposit cash with the lender in an amount which is generally in excess of the market value of securities borrowed. With respect to securities loaned, we generally receive cash in an amount in excess of the market value of securities loaned. We evaluate the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. Securities borrowed and securities loaned are included in “Collateralized agreements” and “Collateralized financings,” respectively, on our Consolidated Statements of Financial Condition. See Note 7 for additional information regarding collateralized agreements and financings. Financial instruments, financial instrument liabilities, at fair value “Financial instruments” and “Financial instrument liabilities” 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 unadjusted 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 judgment or estimation. These instruments are generally valued using discounted cash flow techniques or market multiples. 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. Valuation techniques and inputs The fair values for certain of our financial instruments are derived using pricing models and other valuation techniques that involve 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 less frequently 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 trading volume. We have determined the market for certain other types of financial instruments to be uncertain or inactive as of both September 30, 2022 and 2021. As a result, the valuation of these financial instruments included management judgment in determining the relevance and reliability of market information available. The level within the fair value hierarchy, specific valuation techniques, and other significant accounting policies pertaining to financial instruments at fair value on our Consolidated Statements of Financial Condition are described as follows. Trading assets and trading liabilities Trading assets and trading liabilities 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 financial instruments. Trading assets and trading liabilities are recorded at fair value with realized and unrealized gains and losses reflected in “Principal transactions” in current period net income. When available, we use quoted prices in active markets to determine the fair value of our trading assets and trading liabilities. 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 prepayments and default probabilities. We utilize prices from third-party pricing services to corroborate our estimates of fair value. Depending upon the type of security, the pricing service may provide a listed price, a matrix price or use other methods. Securities valued using these techniques are classified within Level 2 of the fair value hierarchy. Within each broker-dealer subsidiary, we offset our long and short positions for identical securities recorded at fair value as part of our trading assets (long positions) and trading liabilities (short positions). Available-for-sale securities Available-for-sale securities are classified at the date of purchase. They are comprised primarily of agency mortgage-backed securities (“MBS”), agency collateralized mortgage obligations (“CMOs”), and other securities which a re guaranteed by the U.S. government or its agencies. Available-for-sale securities are used as part of our 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. The fair values of our available-for-sale securities are determined by obtaining prices from third-party pricing services, which are primarily based on valuation models. The third-party pricing services provide comparable price evaluations utilizing observable market data for similar securities. Such observable market data is 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. We utilize other third-party pricing services to corroborate the pricing information obtained from the primary pricing service. Available-for-sale securities are valued using valuation techniques that rely on observable market data. Substantially all available-for-sale securities are classified within Level 2 of the fair value hierarchy; however, certain available-sale-securities are classified within Level 1 of the fair value hierarchy. Interest on available-for-sale securities is recognized in interest income on an accrual basis, with the related accrued interest not yet received reflected in “Other receivables” on our Consolidated Statements of Financial Condition. 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 are reflected in “Other” revenue in the period sold. Unrealized gains or losses due to market factors on available-for-sale securities are recorded through other comprehensive income/(loss) (“OCI”), net of applicable taxes, and are thereafter presented in equity as a component of accumulated other comprehensive income (“AOCI”) on our Consolidated Statements of Financial Condition. 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” on 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 within the same subsidiary. 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. Generally the collateral we accept is in the form of either cash or other marketable securities. Where permitted, we elect to net-by-counterparty certain derivatives entered into under a legally enforceable master netting agreement and, therefore, the fair value of those derivatives are netted by counterparty and subsidiary on our Consolidated Statements of Financial Condition. As we elect to net-by-counterparty the fair value of such derivatives, we also net-by-counterparty and subsidiary cash collateral exchanged as part of those derivative agreements. We may also require certain counterparties to make a cash deposit at the inception of a derivative agreement, referred to as “initial margin.” This initial margin is included in “Cash and cash equivalents” and “Other payables” on our Consolidated Statements of Financial Condition. We are also required to maintain deposits with the clearing organizations we utilize to clear certain of our interest rate derivatives, for which we have posted securities as collateral. This initial margin is included as a component of “Other investments” and “Available-for-sale securities” on 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. Interest rate derivatives We enter into interest rate derivatives as part of our trading activities 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. In addition, we enter into interest rate derivatives with clients of our Bank segment, including clients with whom we have entered into loans or other lending arrangements, to facilitate their respective interest rate risk management strategies. 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. Realized and unrealized gains or losses on such derivatives are recorded in “Principal transactions” on our Consolidated Statements of Income and Comprehensive Income. The fair values of these interest rate derivatives are obtained from internal or third-party 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 these model inputs can be observed in liquid markets and the models do not require significant judgment, such derivatives are classified within Level 2 of the fair value hierarchy. We corroborate the output of our internal pricing models by preparing an independent calculation using a third-party model. Our fixed income business also holds to-be-announced security contracts (“TBAs”) that are accounted for as derivatives, which are classified within Level 1 of the fair value hierarchy. We also facilitate matched book derivative transactions in which we enter into interest rate derivatives with clients. For every matched book derivative we enter into with a client, we also enter 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 matched book derivatives is administered directly between the client and the third-party financial institution. Due to this pass-through transaction structure, we have completely mitigated the market and credit risk on these matched book derivatives. As a result, matched book 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. Since any changes in fair value are completely offset by a change in fair value of the offsetting derivative, there is no net impact on our Consolidated Statements of Income and Comprehensive Income from changes in the fair value of these derivatives. We recognize revenue on these matched book derivatives 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. The difference between the present value of these cash flows at the date of inception and the gross amount potentially received is accreted to revenue over the term of the contract. The revenue from these transactions is included within “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. We enter into primarily floating-rate advances from the Federal Home Loan Bank (“FHLB”) to, in part, fund lending and investing activities in our Bank segment and then enter into interest rate contracts which swap variable interest payments on such borrowings for fixed interest payments. These interest rate swaps are designated as cash flow hedges and effectively fix a portion of our Bank segment’s cost of funds and mitigate a portion of the market risk associated with its lending and investing activities. The gain or loss on our Bank segment’s cash flow hedges 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 swaps 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 curves. We validate these observable inputs by preparing an independent calculation using a secondary model. Cash flows from hedging activities are included in the same category as the items being hedged. Cash flows from derivative instruments used to manage interest rates are classified as operating activities. We classify these derivatives within Level 2 of the fair value hierarchy. Foreign-exchange derivatives We enter into three-month forward foreign exchange contracts primarily to hedge the risks related to Raymond James Bank’s investment in its Canadian subsidiary, as well as its 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 gain or loss related to these designated net investment hedges 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 undesignated derivative instruments are recorded in “Other” revenues on 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 values of our forward foreign exchange contracts are determined by obtaining valuations from a third-party pricing service or model. These valuations are based on observable inputs such as spot rates, forward 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 valuation model. These forward foreign exchange contracts are classified within Level 2 of the fair value hierarchy. Other investments Other investments consist primarily of private equity investments, securities pledged as collateral with clearing organizations, and term deposits with Canadian financial institutions. Our securities pledged as collateral with clearing organizations, which primarily include U.S. Treasuries, and term deposits are categorized within Level 1 of the fair value hierarchy. Private equity investments consist primarily of investments in third-party private equity funds. The private equity funds in which we invest are primarily closed-end funds in which our investments are generally not eligible for redemption. We receive distributions from these funds as the underlying assets are liquidated or distributed. These investments are measured at fair value with any gains or losses recognized in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. The fair value of substantially all of our private equity investments are determined utilizing the net asset value (“NAV”) of the fund as a practical expedient with the remainder utilizing Level 3 valuation techniques. Fractional shares Within our broker-dealer subsidiaries, when dividend reinvestment programs or other corporate action events result in clients receiving a share quantity that is not a whole number, we transact in the fractional shares on a principal basis. We include these fractional shares in “Other assets” in our Consolidated Statements of Financial Condition and record an associated liability to the client in “Other payables” as we must fulfill our clients’ future fractional share redemptions. We account for the fractional share assets and the liability to the client at fair value. The fair values of the fractional share assets and liabilities are determined based on quoted prices in active markets and are classified within Level 1 of the fair value hierarchy. Brokerage client receivables, net Brokerage client receivables include receivables from the clients of our broker-dealer subsidiaries and are principally for amounts due on cash and margin transactions. Such receivables are generally collateralized by securities owned by the clients. Brokerage client receivables are reported at their outstanding principal balance, net of any allowance for credit losses. See the “Allowance for credit losses” section below for a discussion of our application of the practical expedient under the current expected credit losses (“CECL”) guidance for financial assets secured by collateral. Securities beneficially owned by clients, including those that collateralize margin or other similar transactions, are not reflected on our Consolidated Statements of Financial Condition (see Note 7 for additional information regarding this collateral). Other receivables, |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS TriState Capital On June 1, 2022, we completed our acquisition of all the outstanding shares of TriState Capital, including its wholly-owned subsidiaries, TriState Capital Bank and Chartwell Investment Partners, LLC (“Chartwell”), in a cash and stock transaction valued at $1.4 billion. TriState Capital Bank serves the commercial banking needs of middle-market businesses and financial services providers and focused private banking needs of high-net-worth individuals. Chartwell, a registered investment adviser, provides investment management services primarily to institutional investors, mutual funds, and individual investors. TriState Capital Bank will continue to operate as a separately branded firm and as an independently-chartered bank. TriState Capital Bank and Chartwell have been integrated into our Bank and Asset Management segments, respectively, and their results of operations have been included in our results prospectively from the closing date of June 1, 2022. Under the terms of the acquisition agreement, TriState Capital common stockholders received $6.00 cash and 0.25 shares of RJF common stock for each share of TriState Capital common stock. Additionally, the TriState Capital Series C Perpetual Non-Cumulative Convertible Non-Voting Preferred Stock (“Series C Convertible Preferred Stock”) was converted to common shares at the prescribed exchange ratio and cashed out at $30 per share and each share of TriState Capital’s 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock and TriState Capital’s 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock was converted, respectively, into the right to receive one share of a newly created series A and series B preferred stock of RJF. The fair values of these newly created RJF series A and series B preferred stock were estimated as of the June 1, 2022 acquisition date based on quoted market prices for the instruments. See Note 20 for further details on these new classes of preferred stock. Furthermore, as a component of our total purchase consideration for TriState Capital on June 1, 2022, in accordance with the terms of the acquisition agreement, 551 thousand RJF RSAs were issued at terms that mirrored RSAs of TriState Capital which were outstanding as of the acquisition date. In accordance with the terms of the acquisition agreement, the TriState Capital RSAs were converted to RJF RSAs using an exchange ratio that considered the RJF volume weighted average price for 10 trading days ending on the third business day prior to the closing of the acquisition. The fair value of the RSAs upon completion of the transaction was calculated as of the June 1, 2022 acquisition date based on the June 1, 2022 closing share price of our common stock and was allocated between the pre-acquisition service period ($28 million treated as purchase consideration) and the post-acquisition requisite service period, over which we will recognize share-based compensation amortization. See Note 23 for further details on these RSAs. On December 15, 2021, during the period between announcement of the intent to acquire TriState Capital and the acquisition closing date, we had loaned TriState Capital $125 million under an unsecured fixed-to-floating rate note (the “Note”). The Note was set to mature on December 15, 2024 and bore interest at a fixed annual rate of 2.25%. Upon acquisition, the Note reverted to an intercompany instrument and subsequent to the closing date, the Note was forgiven. In accordance with GAAP, as of the acquisition date the Note was considered to have been effectively settled and the acquisition-date fair value of $123 million was treated as purchase consideration and included in the purchase price. The fair value of the Note on the acquisition date was determined using a discounted cash flow analysis based on the incremental borrowing rates for similar types of instruments at the acquisition date. We accounted for our completed acquisition of TriState Capital as a business combination in accordance with GAAP. Accordingly, the purchase price attributable to this acquisition was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The following table summarizes the purchase consideration, fair value estimates of the assets acquired and liabilities assumed, and resulting goodwill as of the June 1, 2022 acquisition date. TriState Capital $ in millions, except share and per share amounts June 1, 2022 Fair value of consideration transferred: Fair value of common stock issued: Shares of RJF common stock issued 7,861,189 RJF share price as of June 1, 2022 $ 97.74 Fair value of RJF common stock issued for TriState Capital common stock $ 768 Other common stock consideration 10 Total fair value of common stock issued 778 Cash consideration (1) 359 Effective settlement of the Note 123 Preferred stock issued 120 RSAs issued 28 Total purchase price $ 1,408 Fair value of assets acquired: Cash and cash equivalents $ 457 Available-for-sale securities 1,524 Derivative assets 51 Bank loans, net 11,549 Deferred income taxes, net 26 Identifiable intangible assets 197 Other assets 226 All other assets acquired 59 Total assets acquired $ 14,089 Fair value of liabilities assumed: Bank deposits $ 12,593 Derivative liabilities 125 Other borrowings 375 All other liabilities assumed 117 Total liabilities assumed $ 13,210 Fair value of net identifiable assets acquired $ 879 Goodwill (2) $ 529 (1) Cash consideration includes $6 per TriState Capital common share outstanding (for a total of $189 million) and $30 per TriState Capital Series C Convertible Preferred Stock outstanding (for a total of $154 million), as well as other cash amounts paid to settle TriState Capital warrants and options outstanding as of the closing and cash paid in lieu of fractional shares. We utilized our cash on hand to fund the cash component of the purchase consideration. (2) The goodwill associated with this acquisition, which has been allocated to our Bank segment and primarily represents synergies from combining TriState Capital with our existing businesses, is not deductible for tax purposes. Our Consolidated Statements of Income and Comprehensive Income included net revenues and pre-tax income attributable to TriState Capital of $141 million and $38 million, respectively, for the year ended September 30, 2022. The pre-tax income included an initial provision for credit losses on loans and lending commitments acquired as part of the acquisition of $26 million (included in “Bank loan provision/(benefit) for credit losses”) and $5 million (included in “Other” expense), respectively. These provisions were required under GAAP to be recorded in earnings in the reporting period following the acquisition date. All other acquisitions On January 21, 2022, we completed our acquisition of U.K.-based Charles Stanley Group PLC (“Charles Stanley”) using cash on hand as of the acquisition date. The acquisition enables us to accelerate our financial planning, investment advisory and securities transaction services growth in the U.K. and, through Charles Stanley’s multiple affiliation options, gives us the ability to offer wealth management affiliation choices to financial advisors in the U.K. consistent with our PCG model in the U.S. and Canada. Charles Stanley has been integrated into our PCG segment and its results of operations have been included in our results prospectively from the closing date of January 21, 2022. On July 1, 2022, we completed our acquisition of SumRidge Partners, LLC (“SumRidge Partners”) using cash on hand as of the acquisition date. SumRidge Partners is a technology-driven fixed income market maker specializing in investment-grade and high-yield corporate bonds, municipal bonds, and institutional preferred securities. The acquisition of SumRidge Partners added an institutional market-making operation, as well as additional trading technologies and risk management tools to our existing fixed income operations. SumRidge Partners has been integrated into our Capital Markets segment and its results of operations have been included in our results prospectively from the closing date of July 1, 2022. We accounted for our completed acquisitions of Charles Stanley and SumRidge Partners as business combinations in accordance with GAAP. Accordingly, the aggregate purchase price attributable to each acquisition was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values. The following table summarizes the aggregate purchase consideration, fair value estimates of the assets acquired and liabilities assumed, and resulting goodwill as of their respective acquisition dates. $ in millions Charles Stanley (1) and SumRidge Partners Aggregate purchase consideration $ 686 Fair value of assets acquired: Cash and cash equivalents $ 156 Assets segregated for regulatory purposes 1,890 Trading assets 631 Brokerage client receivables 91 Other receivables 440 Identifiable intangible assets 137 All other assets acquired 38 Total assets acquired $ 3,383 Fair value of liabilities assumed: Trading liabilities $ 552 Brokerage client payables 2,064 All other liabilities assumed 347 Total liabilities assumed $ 2,963 Fair value of net identifiable assets acquired $ 420 Goodwill $ 266 Goodwill by segment: PCG (2) $ 164 Capital Markets (3) 102 Total goodwill $ 266 (1) The fair values of assets acquired and liabilities assumed associated with the Charles Stanley acquisition were denominated in British pounds sterling (“GBP”) and converted to U.S. dollars using the spot rate of 1.3554 as of January 21, 2022. (2) The goodwill associated with the Charles Stanley acquisition, which has been allocated to our PCG segment, primarily represents synergies from combining Charles Stanley with our existing businesses and is not deductible for tax purposes. (3) The goodwill associated with the SumRidge Partners acquisition, which has been allocated to our Capital Markets segment, primarily represents synergies from combining SumRidge Partners with our existing businesses and is deductible for tax purposes over 15 years. Our Consolidated Statements of Income and Comprehensive Income included combined net revenues attributable to Charles Stanley and SumRidge Partners of $187 million and an insignificant amount of pre-tax income for the year ended September 30, 2022. Determination of fair value The following is a description of the methods used to determine the fair values of significant assets and liabilities acquired: Cash and cash equivalents; Assets segregated for regulatory purposes; Brokerage client receivables; Other receivables; and Brokerage client payables : The pre-close carrying amount of these assets and liabilities was a reasonable estimate of fair value based on the short-term nature of these assets and liabilities. Trading assets and liabilities : The pre-close carrying amount of trading assets and liabilities as of the acquisition date were used as reasonable estimates of fair value. We utilized prices from third-party pricing services to corroborate these estimates of fair value. Available-for-sale securities : The fair values of available-for-sale securities were based on quoted market prices for the same or similar securities, recently executed transactions or third-party pricing models. Derivatives assets and liabilities : The pre-close carrying amount of derivative assets and liabilities, which utilized valuations from third-party pricing services, were used as reasonable estimates of fair value. Bank loans : Fair values for bank loans were determined using a discounted cash flow methodology that considered loan type and related collateral, credit loss expectations, classification status, market interest rates and other market factors from the perspective of a market participant. Loans were segregated into specific pools according to similar characteristics, including risk, interest rate type (i.e., fixed or floating), underlying benchmark rate, and payment type and were treated in the aggregate when determining the fair value of each pool. The discount rates were derived using a build-up method inclusive of the weighted average cost of funding, estimated servicing costs and an adjustment for liquidity and then compared to current origination rates and other relevant market data. Purchased loans were evaluated and classified as either purchased credit deteriorated (“PCD”), which indicates that the loan has experienced more than insignificant credit deterioration since origination, or non-PCD loans. For PCD loans, the sum of the loan’s purchase price and allowance for credit losses, which was determined as of the acquisition date using the same allowance methodology applied to the TriState Capital Bank loan portfolio as of September 30, 2022, became its initial amortized cost basis. The initial allowance for credit losses on PCD loans is established in purchase accounting, with a corresponding offset to goodwill (i.e., is not recorded in earnings). As required under GAAP, an initial allowance for credit losses on non-PCD loans is required to be established through a provision for credit losses (i.e., recorded in earnings) in the first reporting period following the acquisition. Subsequent changes in the allowance for credit losses for PCD and non-PCD loans are recognized in the bank loan provision/(benefit) for credit losses. For non-PCD loans, the difference between the fair value and the unpaid principal balance was considered the fair value mark. The non-credit discount or premium related to PCD loans and the fair value mark on non-PCD loans will be accreted or amortized into interest income over the weighted average life of the underlying loans, which may vary based on prepayments. Of the total bank loans acquired in the TriState Capital acquisition with an unpaid principal balance of $11.70 billion, $11.36 billion were considered non-PCD loans and $337 million were considered PCD loans. The following table reconciles the difference between the unpaid principal balance and purchase price of PCD loans at acquisition. $ in millions June 1, 2022 Unpaid principal balance of PCD loans $ 337 Allowance for credit losses on PCD loans (3) Non-credit discount on PCD loans (10) Purchase price of PCD loans $ 324 Identifiable intangible assets : The fair values of the significant identifiable intangible assets were estimated using the following income approaches. • Customer relationships — The fair values of customer relationships were estimated using a multi-period excess earnings approach that considered future period post-tax earnings, as well as a discount rate. • Trade names — The fair values of trade names were estimated using a relief from royalty approach which was based on a forecast of the after-tax royalties we would save by ownership of the intangible assets rather than licensing the use of those assets. • Core deposit intangible (“CDI”) — The fair value of the CDI asset was estimated using a discounted cash flow approach, specifically the favorable source of funds method, that considered the servicing and interest costs of the acquired deposit base, an estimate of the cost associated with alternative funding sources, expected client attrition rates, deposit growth rates, and a discount rate. • Developed technology — The fair value of developed technology was estimated primarily using a multi-period excess earnings approach which was based on a forecast of the expected future net cash flows attributable to the assets over the estimated remaining lives of the assets. These cash flow forecasts were then adjusted to present value by applying appropriate discount rates based on current market rates that reflect the risks associated with the cash flow streams. The following table summarizes the fair value and weighted average estimated useful life of identifiable intangibles assets acquired as of the respective acquisition dates. TriState Capital Charles Stanley and SumRidge Partners $ in millions Estimated fair value Weighted average estimated Estimated fair value Weighted average estimated Fair value of identifiable intangible assets acquired: Core deposit intangible $ 89 10 years $ — — Customer relationships 54 17 years 80 12 years Trade names 33 20 years 17 9 years Developed technology 16 10 years 40 8 years Non-amortizing customer relationships 5 N/A — N/A Total identifiable intangibles assets acquired $ 197 $ 137 Other assets : Other assets primarily include company-owned life insurance policies, ROU assets, investments in FHLB stock, and investments in LIHTC funds. The pre-close historical carrying values of company-owned life insurance policies, investments in FHLB stock and investments in LIHTC funds were used as a reasonable estimate of fair value. ROU lease assets were measured at the same amount as the lease liability, as adjusted to reflect favorable or unfavorable terms of the lease when compared with market terms (see “Other payables” section below for additional details regarding acquired lease liabilities). Bank deposits : The fair values used for demand and savings deposits equaled the amounts payable on demand at the acquisition date. The fair values for time deposits were estimated by applying a discounted cash flow method to discount the principal and interest payments from maturity at the yields offered by similar banks as of the acquisition date. Other borrowings: Other borrowings was comprised of 5.75% fixed-to-floating subordinated notes due 2030 and short-term FHLB advances (see Note 16 for further details on these borrowings). The fair value of the subordinated note was estimated based on quoted market prices as of the valuation date. The carrying amount of the FHLB advances was a reasonable estimate of fair value based on the short-term nature of these instruments and that the vast majority are floating-rate advances. All other liabilities assumed : All other liabilities assumed primarily included payables to brokers, dealers, and clearing organizations, lease liabilities, accrued compensation, commissions, and benefits, and the fair value of unfunded lending commitments. The pre-close historical carrying amount of payables to brokers, dealers, and clearing organizations and accrued compensation, commissions, and benefits was a reasonable estimate of fair value based on the short-term nature of these liabilities. Lease liabilities were measured at the present value of the remaining lease payments determined using a discounted cash flow method based on our cost of borrowing, as if the acquired lease were a new lease at the acquisition date. The fair value of unfunded lending commitments was estimated using a discounted cash flow approach. Pro forma financial information (unaudited) The following table presents unaudited pro forma RJF consolidated net revenues and pre-tax income as if the TriState Capital, Charles Stanley, and SumRidge Partners acquisitions had occurred on October 1, 2020. The unaudited pro forma results reflect adjustments for amortization of acquired identifiable intangible assets, the initial provision for credit losses on non-PCD loans and lending commitments, acquisition-related retention expense, and accretion of the purchase accounting fair value adjustments to loans, available-for-sale securities, lending commitments, deposits, and other borrowings, with accretion generally recognized over the weighted average life of the underlying asset or liability. Legal and other professional fees and other costs incurred to effect these acquisitions are treated as if they were incurred on October 1, 2020. The pro forma amounts do not reflect potential revenue growth or cost savings that may be realized as a result of these acquisitions. The unaudited pro forma financial information is presented for informational purposes only, and is not necessarily indicative of future operations or results had these acquisitions been completed as of October 1, 2020. Year ended September 30, $ in millions 2022 2021 Net revenues $ 11,364 $ 10,395 Pre-tax income $ 2,195 $ 1,872 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Our “Financial instruments” and “Financial instrument liabilities” on our Consolidated Statements of Financial Condition are recorded at fair value. 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 basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Consolidated Statements of Financial Condition. See Note 6 for additional information. $ in millions Level 1 Level 2 Level 3 Netting Balance as of September 30, 2022 Assets at fair value on a recurring basis: Trading assets: Municipal and provincial obligations $ — $ 269 $ — $ — $ 269 Corporate obligations 16 579 — — 595 Government and agency obligations 86 85 — — 171 Agency MBS, CMOs, and asset-backed securities (“ABS”) — 123 — — 123 Non-agency CMOs and ABS — 61 — — 61 Total debt securities 102 1,117 — — 1,219 Equity securities 20 — — — 20 Brokered certificates of deposit — 30 — — 30 Other — — 1 — 1 Total trading assets 122 1,147 1 — 1,270 Available-for-sale securities (1) 986 8,899 — — 9,885 Derivative assets: Interest rate - matched book — 52 — — 52 Interest rate - other 42 432 — (348) 126 Foreign exchange — 10 — — 10 Total derivative assets 42 494 — (348) 188 Other investments - private equity - not measured at NAV — — 5 — 5 All other investments: Government and agency obligations (2) 79 — — — 79 Other 92 2 24 — 118 Total all other investments 171 2 24 — 197 Other assets - fractional shares 78 — — — 78 Subtotal 1,399 10,542 30 (348) 11,623 Other investments - private equity - measured at NAV 90 Total assets at fair value on a recurring basis $ 1,399 $ 10,542 $ 30 $ (348) $ 11,713 Liabilities at fair value on a recurring basis: Trading liabilities: Municipal and provincial obligations $ 5 $ — $ — $ — $ 5 Corporate obligations — 555 — — 555 Government and agency obligations 249 — — — 249 Total debt securities 254 555 — — 809 Equity securities 27 — — — 27 Total trading liabilities 281 555 — — 836 Derivative liabilities: Interest rate - matched book — 52 — — 52 Interest rate - other 40 495 — (65) 470 Foreign exchange — 5 — — 5 Other — — 3 — 3 Total derivative liabilities 40 552 3 (65) 530 Other payables - fractional shares 78 — — — 78 Total liabilities at fair value on a recurring basis $ 399 $ 1,107 $ 3 $ (65) $ 1,444 $ in millions Level 1 Level 2 Level 3 Netting Balance as of September 30, 2021 Assets at fair value on a recurring basis: Assets segregated for regulatory purposes (3) $ 2,100 $ — $ — $ — $ 2,100 Trading assets: Municipal and provincial obligations — 155 — — 155 Corporate obligations 16 63 — — 79 Government and agency obligations 15 94 — — 109 Agency MBS, CMOs, and ABS — 211 — — 211 Non-agency CMOs and ABS — 14 — — 14 Total debt securities 31 537 — — 568 Equity securities 8 4 — — 12 Brokered certificates of deposit — 16 — — 16 Other — — 14 — 14 Total trading assets 39 557 14 — 610 Available-for-sale securities (1) 15 8,300 — — 8,315 Derivative assets: Interest rate - matched book — 193 — — 193 Interest rate - other 16 128 — (87) 57 Foreign exchange — 5 — — 5 Total derivative assets 16 326 — (87) 255 Other investments - private equity - not measured at NAV — — 75 — 75 All other investments: Government and agency obligations (2) 86 — — — 86 Other 77 2 23 — 102 Total all other investments 163 2 23 — 188 Subtotal 2,333 9,185 112 (87) 11,543 Other investments - private equity - measured at NAV 94 Total assets at fair value on a recurring basis $ 2,333 $ 9,185 $ 112 $ (87) $ 11,637 Liabilities at fair value on a recurring basis: Trading liabilities: Municipal and provincial obligations $ 2 $ — $ — $ — $ 2 Corporate obligations — 6 — — 6 Government and agency obligations 137 — — — 137 Total debt securities 139 6 — — 145 Equity securities 28 3 — — 31 Total trading liabilities 167 9 — — 176 Derivative liabilities: Interest rate - matched book — 193 — — 193 Interest rate - other 16 106 — (88) 34 Other — — 1 — 1 Total derivative liabilities 16 299 1 (88) 228 Total liabilities at fair value on a recurring basis $ 183 $ 308 $ 1 $ (88) $ 404 (1) Our available-for-sale securities primarily consist of agency MBS and agency CMOs. See Note 5 for further information. (2) These assets are comprised of U.S. Treasuries primarily purchased to meet certain deposit requirements with clearing organizations. (3) These assets consisted of U.S. Treasuries with maturities greater than 3 months as of our date of purchase. These assets did not include U.S. Treasuries with maturities of less than 3 months as of our date of purchase with a fair value of $3.55 billion at September 30, 2021 which were considered cash equivalents segregated for regulatory purposes. These assets are classified as Level 1. Such cash equivalents were $500 million at September 30, 2022. 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 following tables, gains/(losses) on trading and derivative instruments are reported in “ Principal transactions Other Year ended September 30, 2022 Level 3 instruments at fair value Financial assets Financial Trading assets Other investments Derivative liabilities $ in millions Other Private equity All other Other Fair value beginning of year $ 14 $ 75 $ 23 $ (1) Total gains/(losses) included in earnings 1 12 (3) (2) Purchases and contributions 108 — 7 — Sales, distributions, and deconsolidations (122) (70) (3) — Transfers: Into Level 3 — — — — Out of Level 3 — (12) — — Fair value end of year $ 1 $ 5 $ 24 $ (3) Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year $ — $ 1 $ 1 $ (2) Year ended September 30, 2021 Level 3 instruments at fair value Financial assets Financial Trading assets Derivative assets Other investments Derivative liabilities $ in millions Other Other Private equity All other Other Fair value beginning of year $ 12 $ — $ 37 $ 22 $ (5) Total gains/(losses) included in earnings (1) 1 37 1 5 Purchases and contributions 49 — 1 — — Sales, distributions, and deconsolidations (46) (1) — — (1) Transfers: Into Level 3 — — — — — Out of Level 3 — — — — — Fair value end of year $ 14 $ — $ 75 $ 23 $ (1) Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year $ — $ — $ 37 $ 1 $ (1) As of September 30, 2022, 14% of our assets and 2% of our liabilities were measured at fair value on a recurring basis. In comparison, as of September 30, 2021, 19% of our assets and 1% of our liabilities were measured at fair value on a recurring basis. As of both September 30, 2022 and 2021, Level 3 assets represented less than 1% of our assets measured at fair value on a recurring basis. Investments in private equity measured at net asset value per share As a practical expedient, we utilize NAV or its equivalent to determine the recorded value of a portion of our private equity 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, 2022 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments. Our investments cannot be redeemed directly with the funds. Our investments are monetized through the liquidation of underlying assets of fund investments, the timing of which is uncertain. The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ in millions Recorded value Unfunded commitment September 30, 2022 Private equity investments measured at NAV $ 90 $ 39 Private equity investments not measured at NAV 5 Total private equity investments $ 95 September 30, 2021 Private equity investments measured at NAV $ 94 $ 24 Private equity investments not measured at NAV 75 Total private equity investments (1) $ 169 (1) Of the total private equity investments at September 30, 2021, the portion we owned was $120 million, while the portion that we did not own was $49 million and was included as a component of noncontrolling interests on our Consolidated Statements of Financial Condition. As a financial holding company, we are subject to holding period limitations for our merchant banking activities. As a result of such holding limitations, we exited or restructured certain of our private equity investments during fiscal 2022 to conform with such regulatory deadlines, which resulted in a decline in private equity investments not measured at NAV compared to September 30, 2021 and a decline in noncontrolling interests on our Consolidated Statements of Financial Condition related to the portion of such investments we did not own. Additionally, many of our private equity fund investments met 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 (“Dodd-Frank Act”). We received approval from the Fed to continue to hold the majority of our covered fund investments until July 2022. As a result, we have exited or restructured our covered fund investments to conform to such regulatory deadlines. Financial instruments measured at fair value on a nonrecurring basis The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets 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. $ in millions Level 2 Level 3 Total fair value Valuation technique(s) Unobservable input Range September 30, 2022 Bank loans: Residential mortgage loans $ 2 $ 10 $ 12 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Corporate loans $ — $ 57 $ 57 Collateral or discounted cash flow (1) Recovery rate 24% - 66% (47%) Loans held for sale $ 3 $ — $ 3 N/A N/A N/A September 30, 2021 Bank loans: Residential mortgage loans $ 3 $ 11 $ 14 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. (10.5 yrs.) Corporate loans $ — $ 49 $ 49 Collateral or discounted cash flow (1) Recovery rate 74 % Loans held for sale $ 29 $ — $ 29 N/A N/A N/A (1) The valuation techniques used to estimate the fair values are based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent. Unobservable inputs used in the collateral valuation technique are not meaningful and unobservable inputs used in the discounted cash flow valuation technique are presented in the table. Financial instruments not recorded at fair value Many, but not all, of the financial instruments we hold were recorded at fair value on the Consolidated Statements of Financial Condition. The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value on the Consolidated Statements of Financial Condition at September 30, 2022 and 2021. This table excludes financial instruments that are carried at amounts which approximate fair value. $ in millions Level 2 Level 3 Total estimated Carrying amount September 30, 2022 Financial assets: Bank loans, net $ 134 $ 42,336 $ 42,470 $ 43,167 Financial liabilities: Bank deposits - certificates of deposit $ 400 $ 579 $ 979 $ 999 Other borrowings - subordinated notes payable $ 95 $ — $ 95 $ 100 Senior notes payable $ 1,706 $ — $ 1,706 $ 2,038 September 30, 2021 Financial assets: Bank loans, net $ 116 $ 24,839 $ 24,955 $ 24,902 Financial liabilities: Bank deposits - certificates of deposit $ — $ 898 $ 898 $ 878 Senior notes payable $ 2,459 $ — $ 2,459 $ 2,037 Short-term financial instruments: The carrying value of short-term financial instruments, such as cash and cash equivalents, including amounts segregated for regulatory purposes and restricted cash, and the majority of collateralized agreements and collateralized financings, are recorded at amounts that approximate the fair value of these instruments. These financial instruments generally expose us to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market rates. Under the fair value hierarchy, cash and cash equivalents, including amounts segregated for regulatory purposes and restricted cash, are classified as Level 1 and collateralized agreements and financings are classified as Level 2. Bank loans, net: These financial instruments are primarily comprised of loans originated or purchased by our Bank segment and include SBL, C&I loans, commercial and residential real estate loans, REIT loans, and tax-exempt loans intended to be held until maturity or payoff. These financial instruments are primarily recorded at amounts that result from the application of the methodologies for loans held for investment summarized in Note 2. Certain bank loans are held for sale, which are carried at the lower of cost or market value. A portion of these loans held for sale, as well as certain held for investment loans which have been written-down, are recorded at fair value as nonrecurring fair value measurements and therefore are excluded from the preceding table. The fair values for both variable and fixed-rate loans held for investment are estimated using a discounted cash flow analysis based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, which includes our estimate of future credit losses expected to be incurred. The majority of 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, other receivables, and certain other assets are recorded at amounts that approximate fair value and are classified as Levels 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 to financial advisors, primarily offered for recruiting and retention purposes. Loans to financial advisors, net are recorded at amounts that approximate fair value and are classified as Level 2 under the fair value hierarchy. Refer to Note 2 for information regarding loans to financial advisors, net. Bank deposits: The carrying amounts of variable-rate money market and savings accounts approximate their fair values as these are short-term in nature. Due to their short-term nature, 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 of deposit to a schedule of expected monthly maturities on time deposits. These fixed-rate certificates of deposit are classified as Levels 2 and 3 under the fair value hierarchy. Payables: Brokerage client payables and other payables are recorded at amounts that approximate fair value and are classified as Level 2 under the fair value hierarchy. Other borrowings: Other borrowings primarily include 5.75% fixed-to-floating subordinated notes due 2030 and our Bank segment’s borrowings from the FHLB. The fair value of the subordinated notes is estimated by discounting scheduled cash flows through the estimated maturity using market rates for borrowings of similar maturities and is classified as Level 2 under the fair value hierarchy. FHLB advances reflect terms that approximate current market rates for similar loans and therefore, their carrying value approximates fair value. Our FHLB advances are classified as Level 2 under the fair value hierarchy. Senior notes payable: The fair value of our senior notes payable is calculated based upon recent trades of those debt securities in the market. Our senior notes payable are classified as Level 2 under the fair value hierarchy. |
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES | 12 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
AVAILABLE-FOR-SALE SECURITIES | AVAILABLE-FOR-SALE SECURITIES We own available-for-sale securities at Raymond James Bank and TriState Capital Bank. Refer to Note 2 for a discussion of our accounting policies applicable to our available-for-sale securities. The following table details the amortized costs and fair values of our available-for-sale securities. $ in millions Cost basis Gross Gross Fair value September 30, 2022 Agency residential MBS $ 5,662 $ — $ (668) $ 4,994 Agency commercial MBS 1,518 — (208) 1,310 Agency CMOs 1,637 — (233) 1,404 Other agency obligations 613 — (31) 582 Non-agency residential MBS 492 — (41) 451 U.S. Treasuries 1,014 — (28) 986 Corporate bonds 146 — (5) 141 Other 18 — (1) 17 Total available-for-sale securities $ 11,100 $ — $ (1,215) $ 9,885 September 30, 2021 Agency residential MBS $ 5,168 $ 46 $ (25) $ 5,189 Agency commercial MBS 1,285 7 (28) 1,264 Agency CMOs 1,854 9 (16) 1,847 U.S Treasuries 15 — — 15 Total available-for-sale securities $ 8,322 $ 62 $ (69) $ 8,315 The amortized costs and fair values in the preceding table exclude $24 million and $14 million of accrued interest on available-for-sale securities as of September 30, 2022 and September 30, 2021, respectively, which was included in “ Other receivables, net See Note 4 for additional information regarding the fair value of available-for-sale securities. The following table details the contractual maturities, amortized costs, carrying values and current yields for our available-for-sale securities. Weighted-average yields are calculated on a taxable-equivalent basis based on estimated annual income divided by the average amortized cost of these securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. As a result, as of September 30, 2022, the weighted-average life of our available-for-sale securities portfolio was approximately 4.65 years. September 30, 2022 $ in millions Within one year After one but After five but After ten years Total Agency residential MBS Amortized cost $ — $ 147 $ 2,516 $ 2,999 $ 5,662 Carrying value $ — $ 140 $ 2,242 $ 2,612 $ 4,994 Weighted-average yield — % 2.45 % 1.25 % 1.76 % 1.55 % Agency commercial MBS Amortized cost $ 15 $ 714 $ 716 $ 73 $ 1,518 Carrying value $ 15 $ 644 $ 588 $ 63 $ 1,310 Weighted-average yield 1.91 % 1.70 % 1.22 % 1.69 % 1.47 % Agency CMOs Amortized cost $ — $ 12 $ 30 $ 1,595 $ 1,637 Carrying value $ — $ 12 $ 27 $ 1,365 $ 1,404 Weighted-average yield — % 2.08 % 1.54 % 1.48 % 1.49 % Other agency obligations Amortized cost $ — $ 487 $ 114 $ 12 $ 613 Carrying value $ — $ 464 $ 107 $ 11 $ 582 Weighted-average yield — % 2.16 % 3.55 % 2.99 % 2.43 % Non-agency residential MBS Amortized cost $ — $ — $ — $ 492 $ 492 Carrying value $ — $ — $ — $ 451 $ 451 Weighted-average yield — % — % — % 4.13 % 4.13 % U.S. Treasuries Amortized cost $ 6 $ 1,006 $ 2 $ — $ 1,014 Carrying value $ 6 $ 978 $ 2 $ — $ 986 Weighted-average yield 1.91 % 2.64 % 1.30 % — % 2.63 % Corporate bonds Amortized cost $ — $ 83 $ 63 $ — $ 146 Carrying value $ — $ 81 $ 60 $ — $ 141 Weighted-average yield — % 4.12 % 4.91 % — % 4.46 % Other Amortized cost $ — $ 5 $ — $ 13 $ 18 Carrying value $ — $ 5 $ — $ 12 $ 17 Weighted-average yield — % 4.19 % — % 5.33 % 4.95 % Total available-for-sale securities Amortized cost $ 21 $ 2,454 $ 3,441 $ 5,184 $ 11,100 Carrying value $ 21 $ 2,324 $ 3,026 $ 4,514 $ 9,885 Weighted-average yield 1.91 % 2.31 % 1.39 % 1.91 % 1.84 % The following table details the gross unrealized losses and fair values 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 millions Estimated Unrealized Estimated Unrealized Estimated Unrealized September 30, 2022 Agency residential MBS $ 2,165 $ (226) $ 2,829 $ (442) $ 4,994 $ (668) Agency commercial MBS 494 (41) 816 (167) 1,310 (208) Agency CMOs 337 (32) 1,067 (201) 1,404 (233) Other agency obligations 582 (31) — — 582 (31) Non-agency residential MBS 451 (41) — — 451 (41) U.S. Treasuries 982 (28) 4 — 986 (28) Corporate bonds 128 (5) — — 128 (5) Other 17 (1) — — 17 (1) Total $ 5,156 $ (405) $ 4,716 $ (810) $ 9,872 $ (1,215) September 30, 2021 Agency residential MBS $ 3,155 $ (25) $ 18 $ — $ 3,173 $ (25) Agency commercial MBS 645 (13) 353 (15) 998 (28) Agency CMOs 918 (12) 231 (4) 1,149 (16) U.S. Treasuries 3 — — — 3 — Total $ 4,721 $ (50) $ 602 $ (19) $ 5,323 $ (69) At September 30, 2022, of the 1,071 available-for-sale securities in an unrealized loss position, 734 were in a continuous unrealized loss position for less than 12 months and 337 securities were in a continuous unrealized loss position for greater than 12 months. At September 30, 2022, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of $5.42 billion and $3.21 billion, respectively, and fair values of $4.74 billion and $2.80 billion, respectively. We received proceeds of $52 million, $969 million, and $222 million, respectively, from sales of available-for-sale securities for the years ended September 30, 2022, 2021, and 2020, respectively, resulting in insignificant gains. |
DERIVATIVE ASSETS AND DERIVATIV
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES | 12 Months Ended |
Sep. 30, 2022 | |
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” on our Consolidated Statements of Financial Condition. Cash flows related to our derivatives are included within operating activities on the Consolidated Statements of Cash Flows. The significant accounting policies governing our derivatives, including our methodologies for determining fair value, are described in Note 2. Derivative balances included on our financial statements The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on 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, 2022 September 30, 2021 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 52 $ 52 $ 1,340 $ 193 $ 193 $ 1,736 Interest rate - other (1) 462 535 14,647 144 122 15,087 Foreign exchange 4 5 958 3 — 826 Other — 3 531 — 1 551 Subtotal 518 595 17,476 340 316 18,200 Derivatives designated as hedging instruments Interest rate - other 12 — 1,050 — — 850 Foreign exchange 6 — 1,092 2 — 939 Subtotal 18 — 2,142 2 — 1,789 Total gross fair value/notional amount 536 595 $ 19,618 342 316 $ 19,989 Offset on the Consolidated Statements of Financial Condition Counterparty netting (35) (35) (46) (46) Cash collateral netting (313) (30) (41) (42) Total amounts offset (348) (65) (87) (88) Net amounts presented on the Consolidated Statements of Financial Condition 188 530 255 228 Gross amounts not offset on the Consolidated Statements of Financial Condition Financial instruments (2) (60) (52) (205) (193) Total $ 128 $ 478 $ 50 $ 35 (1) Relates to interest rate derivatives entered into as part of our fixed income business operations, including TBA security contracts that are accounted for as derivatives, as well as our banking operations, including those of TriState Capital Bank which was acquired on June 1, 2022. (2) 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) included in AOCI, net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the year. See Note 20 for additional information. Year ended September 30, $ in millions 2022 2021 2020 Interest rate (cash flow hedges) $ 70 $ 26 $ (34) Foreign exchange (net investment hedges) 72 (34) 5 Total gains/(losses) included in AOCI, net of taxes $ 142 $ (8) $ (29) There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness for each of the years ended September 30, 2022, 2021 or 2020. We expect to reclassify $25 million of interest expense out of AOCI and into earnings within the next 12 months. The maximum length of time over which forecasted transactions are or will be hedged is five 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. These amounts do not include any offsetting gains/(losses) on the related hedged item. Year ended September 30, $ in millions Location of gain/(loss) 2022 2021 2020 Interest rate Principal transactions/other revenues $ 22 $ 13 $ 7 Foreign exchange Other revenues $ 102 $ (21) $ — Other Principal transactions $ (1) $ 4 $ (5) Risks associated with our derivatives and related risk mitigation Credit risk We are exposed to credit losses primarily in the event of nonperformance by the counterparties to derivatives 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 continue to monitor their credit standings on an ongoing basis. We may require initial margin or collateral from counterparties, generally in the form of cash or other marketable securities to support certain of these obligations as established by the credit threshold specified by the agreement and/or as a result of monitoring the credit standing of the counterparties. We also enter into derivatives with clients to which Raymond James Bank and TriState Capital Bank have provided loans. Such derivatives are generally collateralized by marketable securities or other assets of the client. Our only exposure to credit risk on matched book derivatives is related to our uncollected derivative transaction fee revenues, which were insignificant as of both September 30, 2022 and 2021. We are not exposed to market risk on these derivatives due to the pass-through transaction structure described in Note 2. Interest rate and foreign exchange risk We are exposed to interest rate risk related to certain of our interest rate derivatives. We are also exposed to foreign exchange risk related to our forward foreign exchange derivatives. On a daily basis, we monitor our risk exposure on our derivatives 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, both for the total portfolio and by maturity period. 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 or contain provisions related to default on certain of our outstanding debt. If our debt were to fall below investment-grade or we were to default on certain of our outstanding debt, the counterparties to the derivative instruments could terminate the derivative 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 $8 million as of September 30, 2022 and was insignificant as of September 30, 2021. |
COLLATERALIZED AGREEMENTS AND F
COLLATERALIZED AGREEMENTS AND FINANCINGS | 12 Months Ended |
Sep. 30, 2022 | |
Offsetting [Abstract] | |
COLLATERALIZED AGREEMENTS AND FINANCINGS | COLLATERALIZED AGREEMENTS AND FINANCINGS Collateralized agreements are comprised of reverse repurchase agreements and securities borrowed. Collateralized financings are comprised of repurchase agreements and securities loaned. We enter into these transactions in order to facilitate client activities, 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. 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. For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned because the conditions for netting as specified by GAAP are not met. Although not offset on the Consolidated Statements of Financial Condition, these transactions are included in the following table. Collateralized agreements Collateralized financings $ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total September 30, 2022 Gross amounts of recognized assets/liabilities $ 367 $ 337 $ 704 $ 294 $ 172 $ 466 Gross amounts offset on the Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Consolidated Statements of Financial Condition 367 337 704 294 172 466 Gross amounts not offset on the Consolidated Statements of Financial Condition (367) (327) (694) (294) (162) (456) Net amounts $ — $ 10 $ 10 $ — $ 10 $ 10 September 30, 2021 Gross amounts of recognized assets/liabilities $ 279 $ 201 $ 480 $ 205 $ 72 $ 277 Gross amounts offset on the Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Consolidated Statements of Financial Condition 279 201 480 205 72 277 Gross amounts not offset on the Consolidated Statements of Financial Condition (279) (195) (474) (205) (68) (273) Net amounts $ — $ 6 $ 6 $ — $ 4 $ 4 The total amount of collateral received under reverse repurchase agreements and the total amount of collateral posted under repurchase agreements exceeds the carrying value of these agreements on our Consolidated Statements of Financial Condition. Repurchase agreements 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 millions Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total September 30, 2022 Repurchase agreements: Government and agency obligations $ 183 $ — $ — $ — $ 183 Agency MBS and agency CMOs 111 — — — 111 Total repurchase agreements 294 — — — 294 Securities loaned: Equity securities 172 — — — 172 Total collateralized financings $ 466 $ — $ — $ — $ 466 September 30, 2021 Repurchase agreements: Government and agency obligations $ 122 $ — $ — $ — $ 122 Agency MBS and agency CMOs 83 — — — 83 Total repurchase agreements 205 — — — 205 Securities loaned: Equity securities 72 — — — 72 Total collateralized financings $ 277 $ — $ — $ — $ 277 Collateral received and pledged We receive cash and securities as collateral, primarily in connection with reverse repurchase agreements, securities borrowing agreements, derivative transactions, 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 to satisfy our collateral requirements under our repurchase agreements, securities lending agreements or other secured borrowings, to satisfy deposit requirements with clearing organizations, or to otherwise meet 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 millions 2022 2021 Collateral we received that was available to be delivered or repledged $ 3,812 $ 3,429 Collateral that we delivered or repledged $ 947 $ 830 Encumbered assets We pledge certain of our assets 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 our assets that have been pledged for one of the purposes previously described. September 30, $ in millions 2022 2021 Had the right to deliver or repledge $ 1,276 $ 368 Did not have the right to deliver or repledge $ 63 $ 65 Bank loans, net pledged at the FHLB and the Federal Reserve Bank of Atlanta $ 8,800 $ 5,716 |
BANK LOANS, NET
BANK LOANS, NET | 12 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
BANK LOANS, NET | BANK LOANS, NET Bank client receivables are comprised of loans originated or purchased by our Bank segment and include SBL, C&I loans, commercial and residential real estate loans, REIT loans, and tax-exempt loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured. We segregate our loan portfolio into six loan portfolio segments: SBL, C&I, CRE, REIT, residential mortgage, and tax-exempt. See Note 2 for a discussion of accounting policies related to bank loans. Loan balances in the following tables are presented at amortized cost (outstanding principal balance net of unamortized purchase discounts or premiums, unearned income, and deferred origination fees and costs), except for certain held for sale loans recorded at fair value. Bank loans are presented on our Consolidated Statements of Financial Condition at amortized cost (or fair value where applicable) less the allowance for credit losses. As it pertains to TriState Capital Bank’s loans acquired as of June 1, 2022, the amortized cost of such purchased loans reflects the fair value of the loans on the acquisition date, and as described further in Note 3, the purchase discount on such loans is accreted to interest income over the weighted-average life of the underlying loans, which may vary based on prepayments. The following table presents the balances for held for investment loans by portfolio segment and held for sale loans. September 30, $ in millions 2022 2021 SBL $ 15,297 $ 6,106 C&I loans 11,173 8,440 CRE loans 6,549 2,872 REIT loans 1,592 1,112 Residential mortgage loans 7,386 5,318 Tax-exempt loans 1,501 1,321 Total loans held for investment 43,498 25,169 Held for sale loans 137 145 Total loans held for sale and investment 43,635 25,314 Allowance for credit losses (396) (320) Bank loans, net (1) $ 43,239 $ 24,994 ACL as a % of total loans held for investment 0.91 % 1.27 % Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 137 $ 48 (1) Bank loans, net as of September 30, 2022 are presented net of $112 million of net unamortized discount, unearned income, and deferred loan fees and costs. The net unamortized discount primarily arose from the acquisition date fair value purchased discount on bank loans acquired in the TriState Capital acquisition. See Note 3 for further information. Bank loans, net as of September 30, 2021 are presented net of $1 million of unearned income and deferred loan fees and costs. At September 30, 2022, we had pledged $6.58 billion of residential mortgage loans and $1.43 billion of CRE loans with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed. Additionally, as of September 30, 2022, we had pledged $791 million of C&I loans with the FRB to be eligible to participate in the Federal Reserve’s discount window program. See Notes 7 and 16 for more information regarding borrowings from the FHLB and bank loans pledged with the FHLB and FRB. Held for sale loans Exclusive of the loans acquired on June 1, 2022 in our acquisition of TriState Capital Bank, we originated or purchased $3.38 billion, $2.15 billion, and $1.79 billion of loans held for sale during the years ended September 30, 2022, 2021 and 2020, respectively. Of these loans purchased during the years ended September 30, 2022, 2021 and 2020, $2.09 billion, $1.19 billion, and $1.03 billion, respectively, related to the guaranteed portions of SBA loans that were initially classified as loans for held sale upon purchase and subsequently transferred to trading instruments once they had been securitized into pools. Proceeds from the sales of all other loans held for sale and not securitized amounted to $1.29 billion, $973 million, and $776 million for the years ended September 30, 2022, 2021 and 2020, respectively. Net gains resulting from such sales were insignificant for each of the years ended September 30, 2022, 2021, and 2020. Purchases and sales of loans held for investment The following table presents purchases and sales of loans held for investment by portfolio segment. Purchases do not include loans obtained from the acquisition of TriState Capital Bank. $ in millions C&I loans CRE loans Residential mortgage loans Total Year ended September 30, 2022 Purchases $ 1,288 $ — $ 1,207 $ 2,495 Sales $ 147 $ — $ 1 $ 148 Year ended September 30, 2021 Purchases $ 1,528 $ — $ 524 $ 2,052 Sales $ 297 $ — $ — $ 297 Year ended September 30, 2020 Purchases $ 589 $ 5 $ 402 $ 996 Sales $ 598 $ 27 $ 2 $ 627 Sales in the preceding table represent the recorded investment (i.e., net of charge-offs and discounts or premiums) 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 our credit management activities. Aging analysis of loans held for investment The following table presents information on delinquency status of our loans held for investment. $ in millions 30-89 90 days Total past due and accruing Nonaccrual with allowance Nonaccrual with no allowance Current and accruing Total loans held for September 30, 2022 SBL $ — $ — $ — $ — $ — $ 15,297 $ 15,297 C&I loans — — — 32 — 11,141 11,173 CRE loans — — — 12 16 6,521 6,549 REIT loans — — — — — 1,592 1,592 Residential mortgage loans 4 — 4 — 14 7,368 7,386 Tax-exempt loans — — — — — 1,501 1,501 Total loans held for investment $ 4 $ — $ 4 $ 44 $ 30 $ 43,420 $ 43,498 September 30, 2021 SBL $ — $ — $ — $ — $ — $ 6,106 $ 6,106 C&I loans — — — 39 — 8,401 8,440 CRE loans — — — — 20 2,852 2,872 REIT loans — — — — — 1,112 1,112 Residential mortgage loans 2 — 2 2 13 5,301 5,318 Tax-exempt loans — — — — — 1,321 1,321 Total loans held for investment $ 2 $ — $ 2 $ 41 $ 33 $ 25,093 $ 25,169 The preceding table includes $63 million and $61 million at September 30, 2022 and 2021, respectively, of nonaccrual loans which were current pursuant to their contractual terms. The table also includes TDRs of $11 million, $9 million, and $10 million for C&I loans, CRE loans, and residential first mortgage loans, respectively, at September 30, 2022, and $12 million and $13 million for CRE loans and residential first mortgage loans, respectively, at September 30, 2021. Other real estate owned, included in “Other assets” on our Consolidated Statements of Financial Condition, was insignificant at both September 30, 2022 and 2021. Collateral-dependent loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral. Collateral-dependent loans are recorded based upon the fair value of the collateral less the estimated selling costs. At September 30, 2022, we had $11 million of collateral-dependent C&I loans, which were collateralized by commercial real estate and other business assets and $21 million of collateral-dependent CRE loans which were collateralized by retail, industrial, and health care real estate. At September 30, 2021, we had $20 million of collateral-dependent CRE loans which were collateralized by retail and industrial real estate. We had $6 million and $5 million of collateral-dependent residential mortgage loans at September 30, 2022 and September 30, 2021, respectively, which were collateralized by single family homes. The recorded investment in residential mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $5 million and $4 million at September 30, 2022 and 2021, respectively. Credit quality indicators The credit quality of our bank loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators. 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 and generally are performing in accordance with the contractual terms. Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose us 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 we 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 our books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. We do not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification. The following tables present our held for investment bank loan portfolio by credit quality indicator. September 30, 2022 Loans by origination fiscal year $ in millions 2022 2021 2020 2019 2018 Prior Revolving loans Total SBL Risk rating: Pass $ 14 $ 27 $ 72 $ 44 $ 36 $ 41 $ 15,063 $ 15,297 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total SBL $ 14 $ 27 $ 72 $ 44 $ 36 $ 41 $ 15,063 $ 15,297 C&I loans Risk rating: Pass $ 1,011 $ 1,448 $ 1,301 $ 1,124 $ 1,389 $ 2,200 $ 2,380 $ 10,853 Special mention 10 28 3 37 — 82 6 166 Substandard 1 — 60 28 40 6 14 149 Doubtful — — — — 5 — — 5 Total C&I loans $ 1,022 $ 1,476 $ 1,364 $ 1,189 $ 1,434 $ 2,288 $ 2,400 $ 11,173 CRE loans Risk rating: Pass $ 1,916 $ 1,345 $ 892 $ 707 $ 816 $ 551 $ 176 $ 6,403 Special mention — 1 — — 36 2 — 39 Substandard — — 14 17 46 30 — 107 Doubtful — — — — — — — — Total CRE loans $ 1,916 $ 1,346 $ 906 $ 724 $ 898 $ 583 $ 176 $ 6,549 REIT loans Risk rating: Pass $ 169 $ 230 $ 96 $ 53 $ 40 $ 222 $ 782 $ 1,592 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total REIT loans $ 169 $ 230 $ 96 $ 53 $ 40 $ 222 $ 782 $ 1,592 Residential mortgage loans Risk rating: Pass $ 2,984 $ 1,704 $ 1,023 $ 477 $ 290 $ 843 $ 35 $ 7,356 Special mention 1 1 — 2 — 4 — 8 Substandard 1 — — — 1 20 — 22 Doubtful — — — — — — — — Total residential mortgage loans $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 Tax-exempt loans Risk rating: Pass $ 264 $ 169 $ 56 $ 115 $ 192 $ 705 $ — $ 1,501 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 264 $ 169 $ 56 $ 115 $ 192 $ 705 $ — $ 1,501 September 30, 2021 Loans by origination fiscal year $ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total SBL Risk rating: Pass $ 3 $ 45 $ 12 $ — $ — $ — $ 6,046 $ 6,106 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total SBL $ 3 $ 45 $ 12 $ — $ — $ — $ 6,046 $ 6,106 C&I loans Risk rating: Pass $ 999 $ 1,273 $ 1,180 $ 1,408 $ 935 $ 1,633 $ 739 $ 8,167 Special mention — — 41 — 26 54 1 122 Substandard — — 24 84 — 28 — 136 Doubtful — — 15 — — — — 15 Total C&I loans $ 999 $ 1,273 $ 1,260 $ 1,492 $ 961 $ 1,715 $ 740 $ 8,440 CRE loans Risk rating: Pass $ 533 $ 459 $ 442 $ 652 $ 223 $ 174 $ 62 $ 2,545 Special mention — 45 58 36 — — — 139 Substandard — — 32 98 8 50 — 188 Doubtful — — — — — — — — Total CRE loans $ 533 $ 504 $ 532 $ 786 $ 231 $ 224 $ 62 $ 2,872 REIT loans Risk rating: Pass $ 235 $ 95 $ 75 $ 60 $ 46 $ 167 $ 237 $ 915 Special mention — — 13 11 33 106 6 169 Substandard — — 21 — 4 — 3 28 Doubtful — — — — — — — — Total REIT loans $ 235 $ 95 $ 109 $ 71 $ 83 $ 273 $ 246 $ 1,112 Residential mortgage loans Risk rating: Pass $ 1,861 $ 1,266 $ 640 $ 386 $ 451 $ 666 $ 20 $ 5,290 Special mention — — — — — 5 — 5 Substandard — — — 1 2 20 — 23 Doubtful — — — — — — — — Total residential mortgage loans $ 1,861 $ 1,266 $ 640 $ 387 $ 453 $ 691 $ 20 $ 5,318 Tax-exempt loans Risk rating: Pass $ 158 $ 57 $ 124 $ 204 $ 272 $ 506 $ — $ 1,321 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 158 $ 57 $ 124 $ 204 $ 272 $ 506 $ — $ 1,321 Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans. We also monitor the credit quality of the residential mortgage loan portfolio utilizing FICO scores and LTV ratios. A FICO score measures a borrower’s creditworthiness by considering factors such as payment and credit history. LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan. The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination. September 30, 2022 Loans by origination fiscal year $ in millions 2022 2021 2020 2019 2018 Prior Revolving loans Total FICO score: Below 600 $ 1 $ 3 $ 2 $ 3 $ 1 $ 54 $ — $ 64 600 - 699 155 112 90 32 20 68 4 481 700 - 799 2,403 1,301 744 353 219 470 22 5,512 800 + 424 284 184 87 48 273 6 1,306 FICO score not available 3 5 3 4 3 2 3 23 Total $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 LTV ratio: Below 80% $ 2,287 $ 1,333 $ 797 $ 358 $ 226 $ 661 $ 31 $ 5,693 80%+ 699 372 226 121 65 206 4 1,693 Total $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 September 30, 2021 Loans by origination fiscal year $ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total FICO score: Below 600 $ 3 $ 2 $ 4 $ 1 $ 46 $ 11 $ — $ 67 600 - 699 134 114 46 32 16 73 1 416 700 - 799 1,420 921 483 294 252 386 16 3,772 800 + 303 228 107 59 138 220 3 1,058 FICO score not available 1 1 — 1 1 1 — 5 Total $ 1,861 $ 1,266 $ 640 $ 387 $ 453 $ 691 $ 20 $ 5,318 LTV ratio: Below 80% $ 1,451 $ 990 $ 480 $ 304 $ 378 $ 500 $ 20 $ 4,123 80%+ 410 276 160 83 75 191 — 1,195 Total $ 1,861 $ 1,266 $ 640 $ 387 $ 453 $ 691 $ 20 $ 5,318 Allowance for credit losses The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment. The allowance for credit losses on held for investment bank loans and related provision for fiscal 2020 were calculated under the incurred loss model. $ in millions SBL C&I loans CRE loans REIT loans Residential Tax-exempt loans Total Year ended September 30, 2022 Balance at beginning of year $ 4 $ 191 $ 66 $ 22 $ 35 $ 2 $ 320 Initial allowance on acquired PCD loans — 1 2 — — — 3 Provision/(benefit) for credit losses: Initial provision for credit losses on non-PCD loans acquired with TriState Capital 2 5 19 — — — 26 Provision/(benefit) for credit losses (3) 57 — (1) 21 — 74 Total provision/(benefit) for credit losses (1) 62 19 (1) 21 — 100 Net (charge-offs)/recoveries: Charge-offs — (28) (4) — — — (32) Recoveries — — 5 — 1 — 6 Net (charge-offs)/recoveries — (28) 1 — 1 — (26) Foreign exchange translation adjustment — — (1) — — — (1) Balance at end of year $ 3 $ 226 $ 87 $ 21 $ 57 $ 2 $ 396 ACL by loan portfolio segment as a % of total ACL 0.8 % 57.0 % 22.0 % 5.3 % 14.4 % 0.5 % 100.0 % Year ended September 30, 2021 Balance at beginning of year $ 5 $ 200 $ 81 $ 36 $ 18 $ 14 $ 354 Impact of CECL adoption (2) 19 (11) (9) 24 (12) 9 Provision/(benefit) for credit losses 1 (25) 5 (5) (8) — (32) Net (charge-offs)/recoveries: Charge-offs — (4) (10) — — — (14) Recoveries — — — — 1 — 1 Net (charge-offs)/recoveries — (4) (10) — 1 — (13) Foreign exchange translation adjustment — 1 1 — — — 2 Balance at end of year $ 4 $ 191 $ 66 $ 22 $ 35 $ 2 $ 320 ACL by loan portfolio segment as a % of total ACL 1.3 % 59.7 % 20.6 % 6.9 % 10.9 % 0.6 % 100.0 % Year ended September 30, 2020 Balance at beginning of year $ 5 $ 139 $ 34 $ 15 $ 16 $ 9 $ 218 Provision/(benefit) for credit losses — 157 48 23 — 5 233 Net (charge-offs)/recoveries: Charge-offs — (96) (2) (2) — — (100) Recoveries — — — — 2 — 2 Net (charge-offs)/recoveries — (96) (2) (2) 2 — (98) Foreign exchange translation adjustment — — 1 — — — 1 Balance at end of year $ 5 $ 200 $ 81 $ 36 $ 18 $ 14 $ 354 ACL by loan portfolio segment as a % of total ACL 1.4 % 56.4 % 22.9 % 10.2 % 5.1 % 4.0 % 100.0 % The allowance for credit losses on held for investment bank loans increased $76 million during the year ended September 30, 2022 resulting from a $100 million provision for credit losses, primarily due to the impacts of loan growth at Raymond James Bank and a weakener economic outlook, as well as the initial provision for credit losses of $26 million recorded on non-PCD loans acquired as part of the TriState Capital acquisition. These increases in the allowance for credit losses on held for investment bank loans were partially offset by net charge-offs during the year of $26 million, primarily related to a specific C&I loan. The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Consolidated Statements of Financial Condition, was $19 million, $13 million, and $12 million at September 30, 2022, 2021, and 2020, respectively. The increase in the allowance for credit losses on unfunded lending commitments for the year ended September 30, 2022 included $5 million related to the initial provision for credit losses on lending commitments assumed as a result of the Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 for a discussion of our accounting policies related to loans to financial advisors and the related allowance for credit losses. The following table presents the balances for our loans to financial advisors and the related accrued interest receivable. September 30, $ in millions 2022 2021 Affiliated with the firm as of year-end (1) $ 1,173 $ 1,074 No longer affiliated with the firm as of year-end (2) 8 10 Total loans to financial advisors 1,181 1,084 Allowance for credit losses (29) (27) Loans to financial advisors, net $ 1,152 $ 1,057 Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”) $ 5 $ 4 Allowance for credit losses as a percent of total loans to financial advisors 2.46 % 2.49 % (1) These loans were predominantly current. (2) These loans were predominantly past due for a period of 180 days or more. |
LOANS TO FINANCIAL ADVISORS, NE
LOANS TO FINANCIAL ADVISORS, NET | 12 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
LOANS TO FINANCIAL ADVISORS, NET | BANK LOANS, NET Bank client receivables are comprised of loans originated or purchased by our Bank segment and include SBL, C&I loans, commercial and residential real estate loans, REIT loans, and tax-exempt loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured. We segregate our loan portfolio into six loan portfolio segments: SBL, C&I, CRE, REIT, residential mortgage, and tax-exempt. See Note 2 for a discussion of accounting policies related to bank loans. Loan balances in the following tables are presented at amortized cost (outstanding principal balance net of unamortized purchase discounts or premiums, unearned income, and deferred origination fees and costs), except for certain held for sale loans recorded at fair value. Bank loans are presented on our Consolidated Statements of Financial Condition at amortized cost (or fair value where applicable) less the allowance for credit losses. As it pertains to TriState Capital Bank’s loans acquired as of June 1, 2022, the amortized cost of such purchased loans reflects the fair value of the loans on the acquisition date, and as described further in Note 3, the purchase discount on such loans is accreted to interest income over the weighted-average life of the underlying loans, which may vary based on prepayments. The following table presents the balances for held for investment loans by portfolio segment and held for sale loans. September 30, $ in millions 2022 2021 SBL $ 15,297 $ 6,106 C&I loans 11,173 8,440 CRE loans 6,549 2,872 REIT loans 1,592 1,112 Residential mortgage loans 7,386 5,318 Tax-exempt loans 1,501 1,321 Total loans held for investment 43,498 25,169 Held for sale loans 137 145 Total loans held for sale and investment 43,635 25,314 Allowance for credit losses (396) (320) Bank loans, net (1) $ 43,239 $ 24,994 ACL as a % of total loans held for investment 0.91 % 1.27 % Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 137 $ 48 (1) Bank loans, net as of September 30, 2022 are presented net of $112 million of net unamortized discount, unearned income, and deferred loan fees and costs. The net unamortized discount primarily arose from the acquisition date fair value purchased discount on bank loans acquired in the TriState Capital acquisition. See Note 3 for further information. Bank loans, net as of September 30, 2021 are presented net of $1 million of unearned income and deferred loan fees and costs. At September 30, 2022, we had pledged $6.58 billion of residential mortgage loans and $1.43 billion of CRE loans with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed. Additionally, as of September 30, 2022, we had pledged $791 million of C&I loans with the FRB to be eligible to participate in the Federal Reserve’s discount window program. See Notes 7 and 16 for more information regarding borrowings from the FHLB and bank loans pledged with the FHLB and FRB. Held for sale loans Exclusive of the loans acquired on June 1, 2022 in our acquisition of TriState Capital Bank, we originated or purchased $3.38 billion, $2.15 billion, and $1.79 billion of loans held for sale during the years ended September 30, 2022, 2021 and 2020, respectively. Of these loans purchased during the years ended September 30, 2022, 2021 and 2020, $2.09 billion, $1.19 billion, and $1.03 billion, respectively, related to the guaranteed portions of SBA loans that were initially classified as loans for held sale upon purchase and subsequently transferred to trading instruments once they had been securitized into pools. Proceeds from the sales of all other loans held for sale and not securitized amounted to $1.29 billion, $973 million, and $776 million for the years ended September 30, 2022, 2021 and 2020, respectively. Net gains resulting from such sales were insignificant for each of the years ended September 30, 2022, 2021, and 2020. Purchases and sales of loans held for investment The following table presents purchases and sales of loans held for investment by portfolio segment. Purchases do not include loans obtained from the acquisition of TriState Capital Bank. $ in millions C&I loans CRE loans Residential mortgage loans Total Year ended September 30, 2022 Purchases $ 1,288 $ — $ 1,207 $ 2,495 Sales $ 147 $ — $ 1 $ 148 Year ended September 30, 2021 Purchases $ 1,528 $ — $ 524 $ 2,052 Sales $ 297 $ — $ — $ 297 Year ended September 30, 2020 Purchases $ 589 $ 5 $ 402 $ 996 Sales $ 598 $ 27 $ 2 $ 627 Sales in the preceding table represent the recorded investment (i.e., net of charge-offs and discounts or premiums) 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 our credit management activities. Aging analysis of loans held for investment The following table presents information on delinquency status of our loans held for investment. $ in millions 30-89 90 days Total past due and accruing Nonaccrual with allowance Nonaccrual with no allowance Current and accruing Total loans held for September 30, 2022 SBL $ — $ — $ — $ — $ — $ 15,297 $ 15,297 C&I loans — — — 32 — 11,141 11,173 CRE loans — — — 12 16 6,521 6,549 REIT loans — — — — — 1,592 1,592 Residential mortgage loans 4 — 4 — 14 7,368 7,386 Tax-exempt loans — — — — — 1,501 1,501 Total loans held for investment $ 4 $ — $ 4 $ 44 $ 30 $ 43,420 $ 43,498 September 30, 2021 SBL $ — $ — $ — $ — $ — $ 6,106 $ 6,106 C&I loans — — — 39 — 8,401 8,440 CRE loans — — — — 20 2,852 2,872 REIT loans — — — — — 1,112 1,112 Residential mortgage loans 2 — 2 2 13 5,301 5,318 Tax-exempt loans — — — — — 1,321 1,321 Total loans held for investment $ 2 $ — $ 2 $ 41 $ 33 $ 25,093 $ 25,169 The preceding table includes $63 million and $61 million at September 30, 2022 and 2021, respectively, of nonaccrual loans which were current pursuant to their contractual terms. The table also includes TDRs of $11 million, $9 million, and $10 million for C&I loans, CRE loans, and residential first mortgage loans, respectively, at September 30, 2022, and $12 million and $13 million for CRE loans and residential first mortgage loans, respectively, at September 30, 2021. Other real estate owned, included in “Other assets” on our Consolidated Statements of Financial Condition, was insignificant at both September 30, 2022 and 2021. Collateral-dependent loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral. Collateral-dependent loans are recorded based upon the fair value of the collateral less the estimated selling costs. At September 30, 2022, we had $11 million of collateral-dependent C&I loans, which were collateralized by commercial real estate and other business assets and $21 million of collateral-dependent CRE loans which were collateralized by retail, industrial, and health care real estate. At September 30, 2021, we had $20 million of collateral-dependent CRE loans which were collateralized by retail and industrial real estate. We had $6 million and $5 million of collateral-dependent residential mortgage loans at September 30, 2022 and September 30, 2021, respectively, which were collateralized by single family homes. The recorded investment in residential mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $5 million and $4 million at September 30, 2022 and 2021, respectively. Credit quality indicators The credit quality of our bank loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators. 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 and generally are performing in accordance with the contractual terms. Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose us 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 we 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 our books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. We do not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification. The following tables present our held for investment bank loan portfolio by credit quality indicator. September 30, 2022 Loans by origination fiscal year $ in millions 2022 2021 2020 2019 2018 Prior Revolving loans Total SBL Risk rating: Pass $ 14 $ 27 $ 72 $ 44 $ 36 $ 41 $ 15,063 $ 15,297 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total SBL $ 14 $ 27 $ 72 $ 44 $ 36 $ 41 $ 15,063 $ 15,297 C&I loans Risk rating: Pass $ 1,011 $ 1,448 $ 1,301 $ 1,124 $ 1,389 $ 2,200 $ 2,380 $ 10,853 Special mention 10 28 3 37 — 82 6 166 Substandard 1 — 60 28 40 6 14 149 Doubtful — — — — 5 — — 5 Total C&I loans $ 1,022 $ 1,476 $ 1,364 $ 1,189 $ 1,434 $ 2,288 $ 2,400 $ 11,173 CRE loans Risk rating: Pass $ 1,916 $ 1,345 $ 892 $ 707 $ 816 $ 551 $ 176 $ 6,403 Special mention — 1 — — 36 2 — 39 Substandard — — 14 17 46 30 — 107 Doubtful — — — — — — — — Total CRE loans $ 1,916 $ 1,346 $ 906 $ 724 $ 898 $ 583 $ 176 $ 6,549 REIT loans Risk rating: Pass $ 169 $ 230 $ 96 $ 53 $ 40 $ 222 $ 782 $ 1,592 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total REIT loans $ 169 $ 230 $ 96 $ 53 $ 40 $ 222 $ 782 $ 1,592 Residential mortgage loans Risk rating: Pass $ 2,984 $ 1,704 $ 1,023 $ 477 $ 290 $ 843 $ 35 $ 7,356 Special mention 1 1 — 2 — 4 — 8 Substandard 1 — — — 1 20 — 22 Doubtful — — — — — — — — Total residential mortgage loans $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 Tax-exempt loans Risk rating: Pass $ 264 $ 169 $ 56 $ 115 $ 192 $ 705 $ — $ 1,501 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 264 $ 169 $ 56 $ 115 $ 192 $ 705 $ — $ 1,501 September 30, 2021 Loans by origination fiscal year $ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total SBL Risk rating: Pass $ 3 $ 45 $ 12 $ — $ — $ — $ 6,046 $ 6,106 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total SBL $ 3 $ 45 $ 12 $ — $ — $ — $ 6,046 $ 6,106 C&I loans Risk rating: Pass $ 999 $ 1,273 $ 1,180 $ 1,408 $ 935 $ 1,633 $ 739 $ 8,167 Special mention — — 41 — 26 54 1 122 Substandard — — 24 84 — 28 — 136 Doubtful — — 15 — — — — 15 Total C&I loans $ 999 $ 1,273 $ 1,260 $ 1,492 $ 961 $ 1,715 $ 740 $ 8,440 CRE loans Risk rating: Pass $ 533 $ 459 $ 442 $ 652 $ 223 $ 174 $ 62 $ 2,545 Special mention — 45 58 36 — — — 139 Substandard — — 32 98 8 50 — 188 Doubtful — — — — — — — — Total CRE loans $ 533 $ 504 $ 532 $ 786 $ 231 $ 224 $ 62 $ 2,872 REIT loans Risk rating: Pass $ 235 $ 95 $ 75 $ 60 $ 46 $ 167 $ 237 $ 915 Special mention — — 13 11 33 106 6 169 Substandard — — 21 — 4 — 3 28 Doubtful — — — — — — — — Total REIT loans $ 235 $ 95 $ 109 $ 71 $ 83 $ 273 $ 246 $ 1,112 Residential mortgage loans Risk rating: Pass $ 1,861 $ 1,266 $ 640 $ 386 $ 451 $ 666 $ 20 $ 5,290 Special mention — — — — — 5 — 5 Substandard — — — 1 2 20 — 23 Doubtful — — — — — — — — Total residential mortgage loans $ 1,861 $ 1,266 $ 640 $ 387 $ 453 $ 691 $ 20 $ 5,318 Tax-exempt loans Risk rating: Pass $ 158 $ 57 $ 124 $ 204 $ 272 $ 506 $ — $ 1,321 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 158 $ 57 $ 124 $ 204 $ 272 $ 506 $ — $ 1,321 Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans. We also monitor the credit quality of the residential mortgage loan portfolio utilizing FICO scores and LTV ratios. A FICO score measures a borrower’s creditworthiness by considering factors such as payment and credit history. LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan. The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination. September 30, 2022 Loans by origination fiscal year $ in millions 2022 2021 2020 2019 2018 Prior Revolving loans Total FICO score: Below 600 $ 1 $ 3 $ 2 $ 3 $ 1 $ 54 $ — $ 64 600 - 699 155 112 90 32 20 68 4 481 700 - 799 2,403 1,301 744 353 219 470 22 5,512 800 + 424 284 184 87 48 273 6 1,306 FICO score not available 3 5 3 4 3 2 3 23 Total $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 LTV ratio: Below 80% $ 2,287 $ 1,333 $ 797 $ 358 $ 226 $ 661 $ 31 $ 5,693 80%+ 699 372 226 121 65 206 4 1,693 Total $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 September 30, 2021 Loans by origination fiscal year $ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total FICO score: Below 600 $ 3 $ 2 $ 4 $ 1 $ 46 $ 11 $ — $ 67 600 - 699 134 114 46 32 16 73 1 416 700 - 799 1,420 921 483 294 252 386 16 3,772 800 + 303 228 107 59 138 220 3 1,058 FICO score not available 1 1 — 1 1 1 — 5 Total $ 1,861 $ 1,266 $ 640 $ 387 $ 453 $ 691 $ 20 $ 5,318 LTV ratio: Below 80% $ 1,451 $ 990 $ 480 $ 304 $ 378 $ 500 $ 20 $ 4,123 80%+ 410 276 160 83 75 191 — 1,195 Total $ 1,861 $ 1,266 $ 640 $ 387 $ 453 $ 691 $ 20 $ 5,318 Allowance for credit losses The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment. The allowance for credit losses on held for investment bank loans and related provision for fiscal 2020 were calculated under the incurred loss model. $ in millions SBL C&I loans CRE loans REIT loans Residential Tax-exempt loans Total Year ended September 30, 2022 Balance at beginning of year $ 4 $ 191 $ 66 $ 22 $ 35 $ 2 $ 320 Initial allowance on acquired PCD loans — 1 2 — — — 3 Provision/(benefit) for credit losses: Initial provision for credit losses on non-PCD loans acquired with TriState Capital 2 5 19 — — — 26 Provision/(benefit) for credit losses (3) 57 — (1) 21 — 74 Total provision/(benefit) for credit losses (1) 62 19 (1) 21 — 100 Net (charge-offs)/recoveries: Charge-offs — (28) (4) — — — (32) Recoveries — — 5 — 1 — 6 Net (charge-offs)/recoveries — (28) 1 — 1 — (26) Foreign exchange translation adjustment — — (1) — — — (1) Balance at end of year $ 3 $ 226 $ 87 $ 21 $ 57 $ 2 $ 396 ACL by loan portfolio segment as a % of total ACL 0.8 % 57.0 % 22.0 % 5.3 % 14.4 % 0.5 % 100.0 % Year ended September 30, 2021 Balance at beginning of year $ 5 $ 200 $ 81 $ 36 $ 18 $ 14 $ 354 Impact of CECL adoption (2) 19 (11) (9) 24 (12) 9 Provision/(benefit) for credit losses 1 (25) 5 (5) (8) — (32) Net (charge-offs)/recoveries: Charge-offs — (4) (10) — — — (14) Recoveries — — — — 1 — 1 Net (charge-offs)/recoveries — (4) (10) — 1 — (13) Foreign exchange translation adjustment — 1 1 — — — 2 Balance at end of year $ 4 $ 191 $ 66 $ 22 $ 35 $ 2 $ 320 ACL by loan portfolio segment as a % of total ACL 1.3 % 59.7 % 20.6 % 6.9 % 10.9 % 0.6 % 100.0 % Year ended September 30, 2020 Balance at beginning of year $ 5 $ 139 $ 34 $ 15 $ 16 $ 9 $ 218 Provision/(benefit) for credit losses — 157 48 23 — 5 233 Net (charge-offs)/recoveries: Charge-offs — (96) (2) (2) — — (100) Recoveries — — — — 2 — 2 Net (charge-offs)/recoveries — (96) (2) (2) 2 — (98) Foreign exchange translation adjustment — — 1 — — — 1 Balance at end of year $ 5 $ 200 $ 81 $ 36 $ 18 $ 14 $ 354 ACL by loan portfolio segment as a % of total ACL 1.4 % 56.4 % 22.9 % 10.2 % 5.1 % 4.0 % 100.0 % The allowance for credit losses on held for investment bank loans increased $76 million during the year ended September 30, 2022 resulting from a $100 million provision for credit losses, primarily due to the impacts of loan growth at Raymond James Bank and a weakener economic outlook, as well as the initial provision for credit losses of $26 million recorded on non-PCD loans acquired as part of the TriState Capital acquisition. These increases in the allowance for credit losses on held for investment bank loans were partially offset by net charge-offs during the year of $26 million, primarily related to a specific C&I loan. The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Consolidated Statements of Financial Condition, was $19 million, $13 million, and $12 million at September 30, 2022, 2021, and 2020, respectively. The increase in the allowance for credit losses on unfunded lending commitments for the year ended September 30, 2022 included $5 million related to the initial provision for credit losses on lending commitments assumed as a result of the Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 for a discussion of our accounting policies related to loans to financial advisors and the related allowance for credit losses. The following table presents the balances for our loans to financial advisors and the related accrued interest receivable. September 30, $ in millions 2022 2021 Affiliated with the firm as of year-end (1) $ 1,173 $ 1,074 No longer affiliated with the firm as of year-end (2) 8 10 Total loans to financial advisors 1,181 1,084 Allowance for credit losses (29) (27) Loans to financial advisors, net $ 1,152 $ 1,057 Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”) $ 5 $ 4 Allowance for credit losses as a percent of total loans to financial advisors 2.46 % 2.49 % (1) These loans were predominantly current. (2) These loans were predominantly past due for a period of 180 days or more. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Sep. 30, 2022 | |
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. Refer to Note 2 for a discussion of our principal involvement with VIEs and the accounting policies regarding determination of whether we are deemed to be the primary beneficiary of VIEs. VIEs where we are the primary beneficiary Of the VIEs in which we hold an interest, we have determined that certain LIHTC funds and the Restricted Stock Trust Fund require consolidation in our financial statements, as we are deemed the primary beneficiary of such VIEs. As of September 30, 2022, we are not the primary beneficiary of any Private Equity Interests. During the year ended September 30, 2022, we exited or restructured our Private Equity Interests VIEs for which we had been deemed to be the primary beneficiary and therefore were previously consolidated. See Note 4 for further information. The aggregate assets and liabilities of the VIEs 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 millions Aggregate Aggregate September 30, 2022 LIHTC funds $ 59 $ 6 Restricted Stock Trust Fund 17 17 Total $ 76 $ 23 September 30, 2021 LIHTC funds $ 111 $ 52 Private Equity Interests 66 4 Restricted Stock Trust Fund 15 15 Total $ 192 $ 71 The following table presents information about the carrying value of the assets and liabilities of the VIEs which we consolidate and which are included on our Consolidated Statements of Financial Condition. Intercompany balances are eliminated in consolidation and are not reflected in the following table. September 30, $ in millions 2022 2021 Assets: Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash $ 5 $ 10 Other investments — 63 Other assets 54 105 Total assets $ 59 $ 178 Liabilities: Other payables $ — $ 45 Total liabilities $ — $ 45 Noncontrolling interests $ (26) $ 58 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 LIHTC funds, certain Private Equity Interests, 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 VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table. September 30, 2022 2021 $ in millions Aggregate Aggregate Our risk Aggregate Aggregate Our risk LIHTC funds $ 7,752 $ 2,584 $ 136 $ 7,032 $ 2,280 $ 71 Private Equity Interests 2,177 448 90 7,318 47 82 Other 159 101 8 519 155 10 Total $ 10,088 $ 3,133 $ 234 $ 14,869 $ 2,482 $ 163 |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2022 | |
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 millions 2022 2021 Goodwill $ 1,422 $ 660 Identifiable intangible assets, net 509 222 Total goodwill and identifiable intangible assets, net $ 1,931 $ 882 Goodwill The following table summarizes our goodwill by segment and the balances and activity for the years indicated. $ in millions Private Client Group Capital Asset Bank Total Year ended September 30, 2022 Goodwill as of beginning of year $ 417 $ 174 $ 69 $ — $ 660 Additions 164 102 — 529 795 Foreign currency translations (31) (2) — — (33) Goodwill as of end of year $ 550 $ 274 $ 69 $ 529 $ 1,422 Year ended September 30, 2021 Goodwill as of beginning of year $ 277 $ 120 $ 69 $ — $ 466 Additions 139 54 — — 193 Foreign currency translations 1 — — — 1 Goodwill as of end of year $ 417 $ 174 $ 69 $ — $ 660 The additions to goodwill during the year ended September 30, 2022 arose from our acquisitions of Charles Stanley in the Private Client Group, TriState Capital in our Bank segment, and SumRidge Partners in our Capital Markets segment. See Note 3 for additional discussion of these acquisitions. Qualitative assessments As described in Note 2, we perform goodwill impairment 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, 2022 evaluation date, evaluating balances as of December 31, 2021. In that testing, we performed a qualitative impairment assessment for each of our reporting units that had goodwill. Based upon the outcome of our qualitative assessments, no impairment was identified. No events have occurred since our annual assessment date 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 millions Private Client Group Capital Asset Bank Total Year ended September 30, 2022 Net identifiable intangible assets as of beginning of year $ 120 $ 17 $ 85 $ — $ 222 Additions 85 52 61 136 334 Amortization expense (13) (9) (7) (4) (33) Foreign currency translations (14) — — — (14) Net identifiable intangible assets as of end of year $ 178 $ 60 $ 139 $ 132 $ 509 Year ended September 30, 2021 Net identifiable intangible assets as of beginning of year $ 31 $ 13 $ 90 $ — $ 134 Additions 96 13 — — 109 Amortization expense (7) (9) (5) — (21) Net identifiable intangible assets as of end of year $ 120 $ 17 $ 85 $ — $ 222 The additions of identifiable intangible assets during the year ended September 30, 2022 arose from our acquisitions of Charles Stanley in the Private Client Group segment, TriState Capital in our Bank and Asset Management segments, and SumRidge Partners in our Capital Markets segment. See Note 3 for additional discussion of these acquisitions. The following table summarizes our identifiable intangible assets by type. September 30, 2022 2021 $ in millions Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 361 $ (103) $ 238 $ (79) Core deposit intangible 89 (3) — — Developed technology 58 (4) 3 (2) Non-amortizing customer relationships 57 — 52 — Trade names 57 (5) 12 (5) All other 6 (4) 7 (4) Total $ 628 $ (119) $ 312 $ (90) 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 millions 2023 $ 43 2024 42 2025 40 2026 38 2027 37 Thereafter 252 Total $ 452 Qualitative assessments |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Sep. 30, 2022 | |
Prepaid Expense and Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS The following table details the components of other assets. See Note 2 for a discussion of the accounting polices related to certain of these components. September 30, $ in millions 2022 2021 Investments in company-owned life insurance policies $ 944 $ 952 Property and equipment, net 503 499 Lease ROU assets 480 446 Prepaid expenses 173 127 Investments in FHLB and FRB stock 88 72 All other 264 161 Total other assets $ 2,452 $ 2,257 See Note 13 for further information regarding our property and equipment and Note 14 for further information regarding our leases. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET The following table presents the components of our property and equipment, net as of the dates indicated. September 30, 2022 2021 $ in millions Gross Accumulated Property and Gross Accumulated depreciation/ Property and Land $ 29 $ — $ 29 $ 29 $ — $ 29 Software, including development in progress 660 (422) 238 606 (362) 244 Buildings, building components, leasehold and land improvements 413 (239) 174 397 (225) 172 Furniture, fixtures and equipment 356 (294) 62 321 (267) 54 Total $ 1,458 $ (955) $ 503 $ 1,353 $ (854) $ 499 Depreciation expense associated with property and equipment was $50 million, $51 million, and $52 million for the years ended September 30, 2022, 2021, and 2020, respectively, and is included in “Occupancy and equipment” expense on our Consolidated Statements of Income and Comprehensive Income. Amortization expense associated with computer software was $62 million, $62 million, and $54 million for the years ended September 30, 2022, 2021, and 2020, respectively, and is included in “Communications and information processing” expense on our Consolidated Statements of Income and Comprehensive Income. We also incur software licensing fees, which are included in “Communications and information processing” expense on our Consolidated Statements of Income and Comprehensive Income. |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The following table presents the balances related to our leases on our Consolidated Statements of Financial Condition. See Note 2 for a discussion of our accounting policies related to leases. September 30, $ in millions 2022 2021 ROU assets (included in Other assets) $ 480 $ 446 Lease liabilities (included in Other payables) $ 482 $ 450 The weighted-average remaining lease term and discount rate for our leases is presented in the following table. September 30, 2022 2021 Weighted-average remaining lease term 6.8 years 6.7 years Weighted-average discount rate 3.95 % 3.45 % Lease expense The following table details the components of lease expense, which is included in “Occupancy and equipment” expense on our Consolidated Statements of Income and Comprehensive Income. Year ended September 30, $ in millions 2022 2021 2020 Lease costs $ 118 $ 110 $ 98 Variable lease costs $ 28 $ 27 $ 26 Variable lease costs in the preceding table include payments required under lease arrangements for common area maintenance charges and other variable costs that are not reflected in the measurement of ROU assets and lease liabilities. Lease liabilities The maturities by fiscal year of our lease liabilities as of September 30, 2022 are presented in the following table. Fiscal year ended September 30, $ in millions 2023 $ 117 2024 97 2025 76 2026 62 2027 47 Thereafter 160 Gross lease payments 559 Less: interest (77) Present value of lease liabilities $ 482 Lease liabilities as of September 30, 2022 excluded $66 million of minimum lease payments related to lease arrangements that were legally binding but had not yet commenced. These leases are estimated to commence between fiscal year 2023 through fiscal year 2025 with lease terms ranging from three |
BANK DEPOSITS
BANK DEPOSITS | 12 Months Ended |
Sep. 30, 2022 | |
Deposits [Abstract] | |
BANK DEPOSITS | BANK DEPOSITS Bank deposits include money market and savings accounts, certificates of deposit, interest-bearing checking accounts, which include Negotiable Order of Withdrawal accounts, and non-interest-bearing checking accounts. The following table presents a summary of bank deposits, as well as the weighted-average interest rates on such deposits. The calculation of the weighted-average rates was based on the actual deposit balances and rates at each respective period end. September 30, 2022 2021 $ in millions Balance Weighted-average rate Balance Weighted-average rate Money market and savings accounts $ 44,446 1.01 % $ 31,415 0.01 % Interest-bearing checking accounts 5,286 2.77 % 164 1.84 % Certificates of deposit 999 1.85 % 878 1.87 % Non-interest-bearing checking accounts 626 — 38 — Total bank deposits $ 51,357 1.21 % $ 32,495 0.07 % At September 30, 2022 and 2021, money market and savings accounts in the preceding table included $38.71 billion and $31.41 billion, respectively, of deposits that are cash balances swept to our Bank segment from the client investment accounts maintained at Raymond James & Associates, Inc. (“RJ&A”), which are held in FDIC-insured bank accounts through the RJBDP. As of September 30, 2022, money market and savings accounts also included direct accounts held by TriState Capital Bank on behalf of third-party clients. As of September 30, 2022 and September 30, 2021, the estimated amount of total bank deposits that exceeded the FDIC insurance limit was $7.84 billion and $3.08 billion, respectively. The following table sets forth the amount of estimated certificates of deposit that exceeded the FDIC insurance limit by time remaining until maturity as of September 30, 2022. $ in millions September 30, 2022 Three months or less $ 45 Over three through six months 14 Over six through twelve months 9 Over twelve months 9 Total estimated certificates of deposit that exceeded the FDIC insurance limit $ 77 The maturities by fiscal year of our certificates of deposit as of September 30, 2022 are presented in the following table. Fiscal year ended September 30, $ in millions 2023 $ 600 2024 253 2025 129 2026 11 2027 6 Total certificates of deposit $ 999 Interest expense on deposits, excluding interest expense related to affiliated deposits, is summarized in the following table. Year ended September 30, $ in millions 2022 2021 2020 Money market and savings accounts $ 78 $ 3 $ 19 Interest-bearing checking accounts 38 3 2 Certificates of deposit 15 17 20 Total interest expense on deposits $ 131 $ 23 $ 41 |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS The following table details the components of our other borrowings, which are primarily comprised of short-term and long-term FHLB advances and subordinated notes. September 30, $ in millions 2022 2021 FHLB advances $ 1,190 $ 850 5.75% fixed-to-floating subordinated notes, due 2030 (including premium of $2 and $0, respectively) 100 — Other 1 8 Total other borrowings $ 1,291 $ 858 FHLB advances We have entered into advances from the FHLB at Raymond James Bank and TriState Capital Bank, which are secured by certain residential mortgage and CRE loans. As of September 30, 2022, our FHLB borrowings consisted of $850 million of floating-rate advances at interest rates which reset daily and mature in December 2023, $140 million of overnight floating-rate advances, which are available for borrowing through May 2023 at interest rates which reset daily, and $200 million of fixed-rate advances which incur a weighted-average interest rate of 3.45% and mature in December 2022. As of September 30, 2021 our FHLB borrowings consisted of $850 million of floating-rate advances. The interest rates on our floating-rate advances are generally based on a Secured Overnight Financing Rate. The weighted-average interest rate on our floating-rate FHLB advances as of September 30, 2022 and September 30, 2021 was 3.29% and 0.26%, respectively. We use interest rate swaps to manage the risk of increases in interest rates associated with the majority of our FHLB advances. Refer to Note 2 for information regarding these interest rate swaps, which are accounted for as hedging instruments. Subordinated notes As part of the assets acquired and liabilities assumed in the TriState Capital acquisition, we assumed, as of the closing date, TriState Capital’s subordinated notes due 2030, with an aggregate principal amount of $98 million. The subordinated notes incur interest at a fixed rate of 5.75% until May 2025 and thereafter at a variable interest rate based on London Interbank Offered Rate (“ LIBOR”), or an appropriate alternative reference rate at the time LIBOR ceases to be published. We may redeem these subordinated notes beginning in August 2025 at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to the redemption date. Other RJF and RJ&A are parties to an unsecured revolving credit facility agreement (the “Credit Facility”) with a syndicate of lenders. This committed unsecured borrowing facility has a term through April 2026 and provides for maximum borrowings of up to $500 million, with a sublimit of $300 million for RJF. RJ&A may borrow up to $500 million under the Credit Facility, depending on the amount of outstanding borrowings of RJF. The interest rates on borrowings under the Credit Facility are variable and were based on LIBOR as of September 30, 2022, as adjusted for RJF’s credit rating; however, the administrative agent has the right to select an industry-accepted alternative reference rate at the time LIBOR ceases to be published. There were no borrowings outstanding on the Credit Facility as of September 30, 2022 or September 30, 2021. There is a facility fee associated with the Credit Facility, which also varies with RJF’s credit rating. Based upon RJF’s credit rating as of September 30, 2022, the variable rate facility fee, which is applied to the committed amount, was 0.150% per annum. In addition to the Credit Facility, we maintain various secured and unsecured lines of credit, which are generally utilized to finance certain fixed income securities or for cash management purposes. Borrowings during the year were generally day-to-day and there were no borrowings outstanding on these arrangements as of September 30, 2022 or September 30, 2021. The interest rates for these arrangements are variable and are based on a daily bank quoted rate, which may reference LIBOR, the Fed funds rate, a lender’s prime rate, the Canadian prime rate, or another commercially available rate, as applicable. A portion of our fixed income transactions are cleared and executed through a third-party clearing organization, which provides financing for the purchase of trading instruments to support such transactions. The amount of financing is based on the amount of trading inventory financed, as well as any deposits held at the clearing organization. Amounts outstanding under this financing arrangement, which are collateralized by a portion of our trading inventory and accrue interest based on market rates, are included in “Other payables” in our Consolidated Statements of Financial Condition. We also have other collateralized |
SENIOR NOTES PAYABLE
SENIOR NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
SENIOR NOTES PAYABLE | SENIOR NOTES PAYABLE The following table summarizes our senior notes payable. September 30, $ in millions 2022 2021 4.65% senior notes, due 2030 $ 500 $ 500 4.95% senior notes, due 2046 800 800 3.75% senior notes, due 2051 750 750 Total principal amount 2,050 2,050 Unaccreted premiums/(discounts) 5 5 Unamortized debt issuance costs (17) (18) Total senior notes payable $ 2,038 $ 2,037 In March 2020, we sold $500 million in aggregate principal amount of 4.65% senior notes due April 2030 in a registered underwritten public offering. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to January 1, 2030, 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; and on or after January 1, 2030, at 100% of the principal amount of the notes redeemed; plus, in each case, accrued and unpaid interest thereon to the redemption date. In July 2016, we sold $300 million in aggregate principal amount of 4.95% senior notes due July 2046 in a registered underwritten public offering. 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 of 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. In April 2021, we sold $750 million in aggregate principal amount of 3.75% senior notes due April 2051 in a registered underwritten public offering. Interest on these senior notes is payable semi-annually. We may redeem some or all of these senior notes at any time prior to October 1, 2050, 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 20 basis points; and on or after October 1, 2050, at 100% of the principal amount of the notes redeemed; plus, in each case, accrued and unpaid interest thereon to the redemption date. We utilized the proceeds from this offering and cash on hand to early-redeem our $250 million of 5.625% senior notes due 2024 and our $500 million of 3.625% senior notes due 2026. We recognized losses on the extinguishment of such notes of $98 million which was presented in “Losses on extinguishment of debt” in our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2021. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2022 | |
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. Income taxes The following table details the total income tax provision/(benefit) allocation for each respective period. Year ended September 30, $ in millions 2022 2021 2020 Recorded in: Net income $ 513 $ 388 $ 234 Equity, arising from available-for-sale securities recorded through OCI (311) (32) 23 Equity, arising from currency translations, net of the impact of net investment hedges recorded through OCI 23 (10) 2 Equity, arising from cash flow hedges recorded through OCI 24 8 (12) Total provision for income taxes $ 249 $ 354 $ 247 The following table details our provision/(benefit) for income taxes included in net income for each respective period. Year ended September 30, $ in millions 2022 2021 2020 Current: Federal $ 406 $ 321 $ 215 State and local 91 79 49 Foreign 32 25 9 Total current $ 529 $ 425 $ 273 Deferred: Federal (10) (28) (36) State and local (3) (6) (3) Foreign (3) (3) — Total deferred $ (16) $ (37) $ (39) Total provision for income taxes $ 513 $ 388 $ 234 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, 2022 2021 2020 Provision calculated at statutory rate 21.0 % 21.0 % 21.0 % State income tax, net of federal benefit 3.6 % 3.6 % 3.7 % (Gains)/losses on company-owned life insurance policies which are not subject to tax 1.8 % (1.8) % (1.0) % Nondeductible compensation 0.4 % 0.3 % 0.4 % Change in uncertain tax positions 0.3 % (0.1) % 0.2 % Foreign tax rate differential 0.2 % 0.2 % 0.2 % Tax credits (1.2) % (1.0) % (1.6) % Excess tax benefits related to share-based compensation (1.1) % (0.2) % (0.6) % Other, net 0.4 % (0.3) % (0.1) % Total provision for income tax 25.4 % 21.7 % 22.2 % The following table presents our U.S. and foreign components of pre-tax income for each respective period. Year ended September 30, $ in millions 2022 2021 2020 U.S. $ 1,907 $ 1,701 $ 1,019 Foreign 115 90 33 Pre-tax income $ 2,022 $ 1,791 $ 1,052 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 millions 2022 2021 Deferred tax assets: Unrealized loss associated with available-for-sale securities $ 343 $ 2 Deferred compensation 272 287 Lease liabilities 121 115 Allowances for credit losses 106 81 Accrued expenses 54 46 Unrealized loss associated with loan portfolios 34 — Unrealized loss associated with foreign currency translations 27 3 Partnership investments 2 9 Unrealized loss associated with cash flow hedges — 9 Other 31 18 Total deferred tax assets $ 990 $ 570 Deferred tax liabilities: Goodwill and identifiable intangible assets (126) (64) Lease ROU assets (118) (114) Property and equipment (110) (85) Unrealized gain associated with cash flow hedges (15) — Other (5) (2) Total deferred tax liabilities $ (374) $ (265) Net deferred tax assets $ 616 $ 305 Classified as follows in the Consolidated Statements of Financial Condition: Deferred income taxes, net $ 630 $ 305 Other payables (14) — Net deferred tax assets $ 616 $ 305 Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements. Deferred income tax assets are subject to a valuation allowance if, in management’s opinion, it is more likely than not that these benefits will not be realized. As of September 30, 2022, total deferred tax assets, net of an insignificant valuation allowance, aggregated to $990 million. We continue to believe that the realization of our deferred tax assets is more likely than not based on expectations of future taxable income. Our net deferred tax assets principally related to a net unrealized loss associated with available-for-sale securities, deferred compensation, lease liabilities, and allowances for credit losses, partially offset by deferred tax liabilities related to goodwill and identifiable intangible assets and lease ROU assets. The $14 million of net deferred tax liabilities included in “Other payables” on our Consolidated Statements of Financial Condition as of September 30, 2022, primarily arose from entities in the U.K., and accordingly were not netted against balances arising from our U.S. entities. As of September 30, 2022, we considered substantially all undistributed earnings of non-U.S. subsidiaries to be permanently reinvested. The Tax Cut and Jobs Act (“TCJA”), enacted in December 2017, reduced our incremental tax cost of repatriating offshore earnings. As a result, we have not provided for any U.S. deferred income taxes related to such subsidiaries. The TCJA instituted a territorial system of international taxation. Under the system, dividends received by a U.S. corporation from its 10%-or-greater-owned foreign subsidiaries are generally exempt from U.S. tax if attributable to non-U.S. source earnings, but are subject to tax on “Global intangible low-taxed income” which is applicable regardless of whether the income is repatriated. As of September 30, 2022, we had approximately $431 million of cumulative undistributed earnings attributable to foreign subsidiaries. Because the time and 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, 2022, the current tax receivable, which was included in “Other receivables, net” on our Consolidated Statements of Financial Condition, was $7 million, and the current tax payable, which was included in “Other payables,” was $28 million. As of September 30, 2021, the current tax receivable was $12 million and the current tax payable was $7 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, 2022 and 2021, accrued interest and penalties were $9 million and $7 million, respectively. The following table presents the aggregate changes in the balances for uncertain tax positions. Year ended September 30, $ in millions 2022 2021 2020 Uncertain tax positions beginning of year $ 36 $ 45 $ 42 Increases for tax positions related to the current year 5 5 5 Increases for tax positions related to prior years 10 2 3 Decreases for tax positions related to prior years (1) (7) (1) Decreases due to lapsed statute of limitations (7) (5) (4) Decreases related to settlements — (4) — Uncertain tax positions end of year $ 43 $ 36 $ 45 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 $38 million, $31 million, and $40 million at September 30, 2022, 2021 and 2020, respectively. We anticipate that the uncertain tax position liability balance will decrease by approximately $11 million over the next 12 months due to expiration of statutes of limitations of federal and state tax returns. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments and contingencies Underwriting commitments In the normal course of business, we enter into commitments for debt and equity underwritings. As of September 30, 2022, we had two such open underwriting commitments, which were subsequently settled in open market transactions and did not result in significant losses. Lending commitments and other credit-related financial instruments 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, 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 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 our commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding at our Bank segment. September 30, $ in millions 2022 2021 SBL and other consumer lines of credit $ 33,641 $ 17,515 Commercial lines of credit $ 3,792 $ 2,075 Unfunded lending commitments $ 1,255 $ 548 Standby letters of credit $ 94 $ 22 SBL and other consumer lines of credit primarily represent the unfunded amounts of bank loans to consumers that are secured by marketable securities or other liquid collateral 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. These lines of credit are primarily uncommitted, as we reserve the right to not make any advances or may terminate these lines at any time. Because many of our lending commitments expire without being funded in whole or in part, the contractual amounts are not estimates of our actual future credit exposure or future liquidity requirements. The allowance for credit losses calculated under CECL provides for potential losses related to the unfunded lending commitments. See Notes 2 and 8 for further discussion of this allowance for credit losses related to unfunded lending commitments. See Note 3 for a discussion of the initial provision for credit losses on loans and lending commitments acquired as part of the TriState Capital acquisition. RJ&A enters into margin lending arrangements which allow customers to borrow against the value of qualifying securities. Margin loans are collateralized by the securities held in the customer’s account at RJ&A. Collateral levels and established credit terms are monitored daily and we require customers to deposit additional collateral or reduce balances as necessary. We offer loans to prospective financial advisors for recruiting and retention purposes (see Notes 2 and 9 for further discussion of our loans to financial advisors). These offers are contingent upon certain events occurring, including the individuals joining us and meeting certain other conditions outlined in their offer. Investment commitments We had unfunded commitments to various investments, primarily held by Raymond James Bank and TriState Capital Bank, of $51 million as of September 30, 2022. Other commitments RJAHI sells investments in project partnerships to various LIHTC funds, which have third-party investors, and for which RJAHI serves as the managing member or general partner. RJAHI typically sells investments in project partnerships to LIHTC funds within 90 days of their acquisition. Until such investments are sold to LIHTC funds, RJAHI is responsible for funding investment commitments to such partnerships. As of September 30, 2022, RJAHI had committed approximately $53 million to project partnerships that had not yet been sold to LIHTC funds. Because we expect to sell these project partnerships to LIHTC funds and the equity funding events arise over future periods, the contractual commitments are not expected to materially impact our future liquidity requirements. RJAHI may also make short-term loans or advances to project partnerships and LIHTC funds. For information regarding our lease commitments, including the maturities of our lease liabilities, see Note 14. 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 its 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. Legal and regulatory matter contingencies 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, among other things, into industry practices, which can also result in the imposition of such sanctions. For example, the firm is currently cooperating with the SEC in connection with an investigation of the firm’s investment advisory business’ compliance with records preservation requirements relating to business communications sent over electronic messaging channels that have not been approved by the firm. The SEC is reportedly conducting similar investigations of record preservation practices at other financial institutions. We may contest liability and/or the amount of damages, as appropriate, in each pending matter. The level of litigation and investigatory activity (both formal and informal) by government and self-regulatory agencies in the financial services industry continues to be significant. 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. For many legal and regulatory matters, we are unable to estimate a range of reasonably possible loss as 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). Subject to the foregoing, after consultation with counsel, we believe 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 regulatory 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. There are certain matters for which we are unable to estimate the upper end of the range of reasonably possible loss. 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, 2022, we estimated the upper end of the range of reasonably possible aggregate loss to be approximately $90 million in excess of the aggregate accruals for such matters. Refer to Note 2 for a discussion of our criteria for recognizing liabilities for contingencies. Subsequent to our fiscal year ended September 30, 2022, we entered into an agreement with certain third-party insurance carriers to settle claims triggered by a previously settled litigation matter. Our fiscal first quarter of 2023 results will include this $32 million insurance settlement, which we considered a gain contingency as of September 30, 2022. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Preferred stock On June 1, 2022, we completed our acquisition of TriState Capital. As a component of our total purchase consideration for TriState Capital on June 1, 2022, we issued two series of preferred stock, each described below, to replace previously issued and, as of the acquisition date, outstanding preferred stock of TriState Capital. See Note 3 for further information about the acquisition. On June 1, 2022, we issued 1.61 million depositary shares, each representing a 1/40th interest in a share of 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, par value of $0.10 per share (“Series A Preferred Stock”), with a liquidation preference of $1,000 per share (equivalent of $25 per depositary share). Dividends on the Series A Preferred Stock are non-cumulative and, if declared, payable quarterly at a rate of 6.75% per annum from original issue date up to, but excluding, April 1, 2023, and thereafter at a floating rate equal to 3-month LIBOR, or industry-accepted alternative reference rate at the time LIBOR ceases to be published, plus a spread of 3.985% per annum. Subject to requisite regulatory approvals, we may redeem the Series A Preferred Stock on or after April 1, 2023, in whole or in part, at our option, at the liquidation preference plus declared and unpaid dividends. As of September 30, 2022, there were 40,250 shares of Series A Preferred Stock issued and outstanding with a carrying value and aggregate liquidation preference of $41 million and $40 million, respectively. We also issued 3.22 million depositary shares on June 1, 2022, each representing a 1/40th interest in a share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, par value of $0.10 per share (“Series B Preferred Stock”), with a liquidation preference of $1,000 per share (equivalent of $25 per depositary share). Dividends on the Series B Preferred Stock are non-cumulative and, if declared, payable quarterly at a rate of 6.375% per annum from original issue date up to, but excluding, July 1, 2026, and thereafter at a floating rate equal to 3-month LIBOR, or industry-accepted alternative reference rate at the time LIBOR ceases to be published, plus a spread of 4.088% per annum. Under certain circumstances, the aforementioned fixed rate may apply in lieu of the floating rate. Subject to requisite regulatory approvals, we may redeem the Series B Preferred Stock on or after July 1, 2024, in whole or in part, at our option, at the liquidation preference plus declared and unpaid dividends. As of September 30, 2022, there were 80,500 shares of Series B Preferred Stock issued and outstanding with a carrying value and aggregate liquidation preference of $79 million and $81 million, respectively. The following table details dividends declared and dividends paid on our preferred stock for the year ended September 30, 2022. Year ended September 30, 2022 $ in millions, except per share amounts Total dividends Per preferred Dividends declared: Series A Preferred Stock $ 1 $ 33.75 Series B Preferred Stock 3 $ 31.88 Total preferred stock dividends declared $ 4 Dividends paid: Series A Preferred Stock $ 1 $ 16.88 Series B Preferred Stock 1 $ 15.94 Total preferred stock dividends paid $ 2 Common equity Common stock issuance We issue shares from time-to-time during the year to satisfy obligations under certain of our share-based compensation programs, see Note 23 for additional information on these programs. We may also reissue treasury shares for such purposes. Additionally, on June 1, 2022, we issued 7.97 million shares of common stock as a component of the consideration in the settlement of TriState Capital common stock, and 551 thousand RSAs, in conjunction with our acquisition of TriState Capital. See Note 3 for further information on the TriState Capital acquisition and Note 23 for further information on the RSAs and common stock issuances made under our share-based compensation programs. Share repurchases We repurchase shares of our common stock from time to time for a number of reasons, including to offset dilution from share-based compensation or share issuances arising from an acquisition. In December 2021, our Board of Directors authorized share repurchases of up to $1 billion, which replaced the previous authorization. Our share repurchases are effected primarily through regular open-market purchases, typically under a SEC Rule 10b-18 plan, the amounts and timing of which are determined primarily by our current and projected capital position, applicable law and regulatory constraints, general market conditions and the price and trading volumes of our common stock. Following the acquisition of TriState Capital on June 1, 2022, we repurchased 1.74 million shares of our common stock for $162 million at an average price of $94 per share. As of September 30, 2022, $838 million remained available under the Board of Directors’ share repurchase authorization. Common stock dividends Dividends per common share declared and paid are detailed in the following table for each respective period. Year ended September 30, 2022 2021 2020 Dividends per common share - declared $ 1.36 $ 1.04 $ 0.99 Dividends per common share - paid $ 1.28 $ 1.03 $ 0.97 Our dividend payout ratio is detailed in the following table for each respective period and is computed by dividing dividends declared per common share by earnings per diluted common share. Year ended September 30, 2022 2021 2020 Dividend payout ratio 19.5 % 15.7 % 25.4 % RJF expects to continue paying cash dividends. However, the payment and rate of dividends on our common stock are 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 Raymond James Bank and TriState Capital. See Note 24 for additional information on our regulatory capital requirements. Other In fiscal 2021, our Board of Directors approved a three-for-two stock split, effected in the form of a 50% stock dividend, paid on September 21, 2021. All share and per share information was retroactively adjusted in fiscal 2021 to reflect this stock split. During fiscal 2022, we amended our Restated Articles of Incorporation, as filed with the Secretary of State of Florida on November 25, 2008, to increase the number of authorized shares of capital stock from 360 million shares to 660 million shares, consisting of 650 million shares of common stock, par value of $0.01 per share, and 10 million shares of preferred stock, par value of $0.10 per share. The Amended and Restated Articles of Incorporation, which were filed with the Secretary of State of Florida on February 28, 2022, were approved by our Board of Directors and our shareholders on December 1, 2021 and February 24, 2022, respectively. Accumulated other comprehensive income/(loss) All of the components of OCI, net of tax, were attributable to RJF. The following table presents the net change in AOCI as well as the changes, and the related tax effects, of each component of AOCI. $ in millions Net investment hedges Currency translations Subtotal: net investment hedges and currency translations Available-for-sale securities Cash flow hedges Total Year ended September 30, 2022 AOCI as of beginning of year $ 81 $ (90) $ (9) $ (5) $ (27) $ (41) OCI: OCI before reclassifications and taxes 95 (186) (91) (1,208) 85 (1,214) Amounts reclassified from AOCI, before tax — — — — 9 9 Pre-tax net OCI 95 (186) (91) (1,208) 94 (1,205) Income tax effect (23) — (23) 311 (24) 264 OCI for the year, net of tax 72 (186) (114) (897) 70 (941) AOCI as of end of year $ 153 $ (276) $ (123) $ (902) $ 43 $ (982) Year ended September 30, 2021 AOCI as of beginning of year $ 115 $ (140) $ (25) $ 89 $ (53) $ 11 OCI: OCI before reclassifications and taxes (44) 48 4 (119) 19 (96) Amounts reclassified from AOCI, before tax — 2 2 (7) 15 10 Pre-tax net OCI (44) 50 6 (126) 34 (86) Income tax effect 10 — 10 32 (8) 34 OCI for the year, net of tax (34) 50 16 (94) 26 (52) AOCI as of end of year $ 81 $ (90) $ (9) $ (5) $ (27) $ (41) Year ended September 30, 2020 AOCI as of beginning of year $ 110 $ (135) $ (25) $ 21 $ (19) $ (23) OCI: OCI before reclassifications and taxes 7 (5) 2 94 (51) 45 Amounts reclassified from AOCI, before tax — — — (3) 5 2 Pre-tax net OCI 7 (5) 2 91 (46) 47 Income tax effect (2) — (2) (23) 12 (13) OCI for the year, net of tax 5 (5) — 68 (34) 34 AOCI as of end of year $ 115 $ (140) $ (25) $ 89 $ (53) $ 11 Reclassifications from AOCI to net income, excluding taxes, for the year ended September 30, 2022 were recorded in “Interest expense” on the Consolidated Statements of Income and Comprehensive Income. Reclassifications from AOCI to net income, excluding taxes, for the years ended September 30, 2021 and 2020 were primarily recorded in “Other” revenue and “Interest expense” on the Consolidated Statements of Income and Comprehensive Income. Our net investment hedges and cash flow hedges relate to derivatives associated with our Bank segment. See Notes 2 and 6 for additional information on these derivatives. |
REVENUES
REVENUES | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following tables present our sources of revenues by segment. For further information about our significant accounting policies related to revenue recognition, see Note 2. See Note 26 for additional information on our segment results. Year ended September 30, 2022 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 4,710 $ 3 $ 882 $ — $ (32) $ 5,563 Brokerage revenues: Securities commissions: Mutual and other fund products 620 6 7 — (2) 631 Insurance and annuity products 438 — — — — 438 Equities, ETFs and fixed income products 382 138 — — — 520 Subtotal securities commissions 1,440 144 7 — (2) 1,589 Principal transactions (1) 76 446 — 5 — 527 Total brokerage revenues 1,516 590 7 5 (2) 2,116 Account and service fees: Mutual fund and annuity service fees 428 — 1 — (2) 427 RJBDP fees 559 1 — — (358) 202 Client account and other fees 220 7 21 — (44) 204 Total account and service fees 1,207 8 22 — (404) 833 Investment banking: Merger & acquisition and advisory — 709 — — — 709 Equity underwriting 38 210 — — — 248 Debt underwriting — 143 — — — 143 Total investment banking 38 1,062 — — — 1,100 Other: Affordable housing investments business revenues — 127 — — — 127 All other (1) 32 10 1 26 (8) 61 Total other 32 137 1 26 (8) 188 Total non-interest revenues 7,503 1,800 912 31 (446) 9,800 Interest income (1) 249 36 2 1,209 12 1,508 Total revenues 7,752 1,836 914 1,240 (434) 11,308 Interest expense (42) (27) — (156) (80) (305) Net revenues $ 7,710 $ 1,809 $ 914 $ 1,084 $ (514) $ 11,003 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Year ended September 30, 2021 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 4,056 $ 4 $ 837 $ — $ (29) $ 4,868 Brokerage revenues: Securities commissions: Mutual and other fund products 670 6 10 — (3) 683 Insurance and annuity products 438 — — — — 438 Equities, ETFs and fixed income products 388 143 — — (1) 530 Subtotal securities commissions 1,496 149 10 — (4) 1,651 Principal transactions (1) 50 511 — — — 561 Total brokerage revenues 1,546 660 10 — (4) 2,212 Account and service fees: Mutual fund and annuity service fees 408 — — — (2) 406 RJBDP fees 259 1 — — (184) 76 Client account and other fees 157 7 18 — (29) 153 Total account and service fees 824 8 18 — (215) 635 Investment banking: Merger & acquisition and advisory — 639 — — — 639 Equity underwriting 47 285 — — — 332 Debt underwriting — 172 — — — 172 Total investment banking 47 1,096 — — — 1,143 Other: Affordable housing investments business revenues — 105 — — — 105 All other (1) 25 6 2 30 61 124 Total other 25 111 2 30 61 229 Total non-interest revenues 6,498 1,879 867 30 (187) 9,087 Interest income (1) 123 16 — 684 — 823 Total revenues 6,621 1,895 867 714 (187) 9,910 Interest expense (10) (10) — (42) (88) (150) Net revenues $ 6,611 $ 1,885 $ 867 $ 672 $ (275) $ 9,760 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Year ended September 30, 2020 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 3,162 $ 7 $ 688 $ — $ (23) $ 3,834 Brokerage revenues: Securities commissions: Mutual and other fund products 567 7 8 — (3) 579 Insurance and annuity products 397 — — — — 397 Equities, ETFs and fixed income products 355 137 — — — 492 Subtotal securities commissions 1,319 144 8 — (3) 1,468 Principal transactions (1) 64 427 — 1 (4) 488 Total brokerage revenues 1,383 571 8 1 (7) 1,956 Account and service fees: Mutual fund and annuity service fees 348 — 1 — (1) 348 RJBDP fees 330 1 — — (181) 150 Client account and other fees 129 5 15 — (23) 126 Total account and service fees 807 6 16 — (205) 624 Investment banking: Merger & acquisition and advisory — 290 — — — 290 Equity underwriting 41 185 — — 1 227 Debt underwriting — 133 — — — 133 Total investment banking 41 608 — — 1 650 Other: Affordable housing investments business revenues — 83 — — — 83 All other (1) 27 7 2 26 (41) 21 Total other 27 90 2 26 (41) 104 Total non-interest revenues 5,420 1,282 714 27 (275) 7,168 Interest income (1) 155 25 1 800 19 1,000 Total revenues 5,575 1,307 715 827 (256) 8,168 Interest expense (23) (16) — (62) (77) (178) Net revenues $ 5,552 $ 1,291 $ 715 $ 765 $ (333) $ 7,990 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. |
INTEREST INCOME AND INTEREST EX
INTEREST INCOME AND INTEREST EXPENSE | 12 Months Ended |
Sep. 30, 2022 | |
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 millions 2022 2021 2020 Interest income: Cash and cash equivalents $ 48 $ 12 $ 41 Assets segregated for regulatory purposes and restricted cash 96 15 28 Trading assets — debt securities 27 13 18 Available-for-sale securities 136 85 83 Brokerage client receivables 100 77 84 Bank loans, net 1,051 593 702 All other 50 28 44 Total interest income 1,508 823 1,000 Interest expense: Bank deposits 131 23 41 Trading liabilities — debt securities 12 2 3 Brokerage client payables 24 3 11 Other borrowings 21 19 20 Senior notes payable 93 96 85 All other 24 7 18 Total interest expense 305 150 178 Net interest income 1,203 673 822 Bank loan (provision)/benefit for credit losses (100) 32 (233) Net interest income after bank loan (provision)/benefit for credit losses $ 1,103 $ 705 $ 589 Interest expense related to bank deposits in the preceding table 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, 2022 | |
Retirement Benefits [Abstract] | |
SHARE-BASED AND OTHER COMPENSATION | SHARE-BASED AND OTHER COMPENSATION Share-based compensation plan We have one share-based compensation plan, the Raymond James Financial, Inc., Amended and Restated 2012 Stock Incentive Plan (“the Plan”), for our employees, Board of Directors, and independent contractor financial advisors. The Plan authorizes us to grant 78.4 million new shares, including the shares available for grant under six predecessor plans. As of September 30, 2022, 8.7 million shares were available under the Plan. Generally, we reissue our treasury shares under the Plan; however, we are also permitted to issue new shares. Our share-based compensation accounting policies are described in Note 2. Restricted stock units We may grant RSU awards under the Plan in connection with initial employment or under various retention programs for individuals who are responsible for contributing to our management, growth, and/or profitability. Through our Canadian subsidiary, we utilize 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 portions ranging from 10% to 50% of annual bonus amounts in excess of $250,000. Under the plan, the awards are generally restricted for a three We grant RSUs annually to non-employee members of our Board of Directors. The RSUs granted to these Directors vest over a 1-year period from their grant date or upon retirement from our Board. The following table presents the RSU award activity, which includes grants to employees, independent contractor financial advisors, and members of our Board of Directors, for the year ended September 30, 2022. Shares/Units Weighted- average grant date fair value (per share) Non-vested as of beginning of year 8.2 $ 56.59 Granted (1) 3.4 $ 98.52 Vested (2.4) $ 50.55 Forfeited (0.2) $ 68.45 Non-vested as of end of year 9.0 $ 73.73 (1) Includes RSUs granted as part of acquisition-related retention initiatives. See Note 3 for additional information regarding our acquisitions. The following table presents expense and income tax benefits related to our RSUs granted to our employees, independent contractor financial advisors, and members of our Board of Directors for the periods indicated. Year ended September 30, $ in millions 2022 2021 2020 RSU share-based compensation amortization $ 179 $ 126 $ 110 Income tax benefits related to share-based expense $ 41 $ 29 $ 25 For the year ended September 30, 2022, we realized $101 million of excess tax benefits related to our RSUs, which favorably impacted income tax expense on our Consolidated Statements of Income and Comprehensive Income. See Note 18 for additional information regarding income taxes. As of September 30, 2022, there was $319 million of total pre-tax compensation costs not yet recognized (net of estimated forfeitures) related to RSUs granted to employees, independent contractor financial advisors, and members of our Board of Directors. These costs are expected to be recognized over a weighted-average period of approximately three years. The following RSU activity occurred for the periods indicated. Year ended September 30, $ in millions, except per unit award amounts 2022 2021 2020 Weighted-average grant date fair value per unit award $ 98.52 $ 63.86 $ 58.20 Total fair value of RSUs vested $ 115 $ 87 $ 83 Restricted stock awards As a component of our total purchase consideration for TriState Capital on June 1, 2022, in accordance with the terms of the acquisition, 551 thousand RJF RSAs were issued at terms that mirrored RSAs of TriState Capital which were outstanding as of the acquisition date. The fair value of the RJF RSAs was calculated as of the June 1, 2022 acquisition date and was allocated between the pre-acquisition service period ($28 million treated as purchase consideration) and the post-acquisition requisite service period, over which we will recognize share-based compensation amortization. For the year ended September 30, 2022, we recorded shared-based compensation expense of $4 million related to these awards. As of September 30, 2022, there were $21 million of total pre-tax compensation costs not yet recognized for these RJF restricted shares. These costs are expected to be recognized over a weighted-average period of three years. See Note 3 for further discussion of our acquisition of TriState Capital. Employee stock purchase plan Under the 2003 Employee Stock Purchase Plan, we are authorized to issue up to 13.1 million shares of common stock to eligible employees. 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 416 thousand, 393 thousand and 699 thousand shares to employees during the years ended September 30, 2022, 2021 and 2020, respectively. The related compensation expense is calculated as the value of the 15% discount from market value and was $6 million, $5 million, and $5 million for the years ended September 30, 2022, 2021 and 2020, respectively. Stock options We had stock options outstanding as of September 30, 2022 which had been issued to our employees and independent contractor financial advisors. Effective in fiscal 2017, we stopped issuing stock options to our employees and effective in fiscal 2021, we stopped issuing stock options to our independent contractor financial advisors. Stock options granted to our independent contractor financial advisors, as well as the related expense was insignificant for the years ended September 30, 2022, 2021, and 2020. Cash received from stock options exercised by our employees and independent contractor financial advisors during the year ended September 30, 2022 was $15 million. Employee other compensation Our profit sharing plan and employee stock ownership plan (“ESOP”) are qualified plans that provide certain death, disability, or retirement benefits for all employees who meet certain service requirements. The plans are noncontributory and our contributions, if any, are determined annually by our Board of Directors, or a committee thereof, on a discretionary basis and are recognized as compensation expense throughout the year. Benefits become fully vested after five years of qualified service, age 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, 2022 and 2021 was 6.6 million and 6.7 million, respectively. The market value of our common stock held by the ESOP at September 30, 2022 was $651 million, of which $7 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 certain employees who meet certain compensation or production requirements. We have purchased and hold life insurance on the lives of certain current and former employee participants to earn a competitive rate of return for participants and to provide the primary source of funds available to satisfy our obligations under this plan. See Note 12 for information regarding the carrying value of these company-owned life insurance policies. Contributions to the qualified plans and the LTIP are approved annually by the Board of Directors or a committee thereof. The VDCP is a non-qualified deferred compensation plan for certain employees, in which eligible participants may elect to defer a percentage or specific dollar amount of their compensation. Company-owned life insurance is the primary source of funding for this plan. Compensation expense associated with all of the qualified and non-qualified plans previously described totaled $195 million, $175 million and $149 million for the fiscal years ended September 30, 2022, 2021 and 2020, respectively. Non-employee deferred payment plans We offer non-qualified deferred payment 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 these plans. 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 commissions into the VDCP. Company-owned life insurance is the primary source of funding for this plan. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Sep. 30, 2022 | |
Regulatory Capital Requirement [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS RJF, as a bank holding company and financial holding company, as well as Raymond James Bank, TriState Capital Bank, our broker-dealer subsidiaries, and our trust 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 under the Bank Holding Company Act of 1956, as amended (the “BHC Act”), that has made an election to be a financial holding company, RJF is subject to supervision, examination and regulation by the Fed. We are subject to the Fed’s capital rules which establish an integrated regulatory capital framework and implement, in the U.S., the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act. The FDIC’s capital rules, which are substantially similar to the Fed’s rules, apply to TriState Capital Bank. We apply the standardized approach for calculating risk-weighted assets and are also subject to the market risk provisions of the Fed’s capital rules (“market risk rule”). Under these rules, minimum requirements are established for both the quantity and quality of capital held by banking organizations. RJF, Raymond James Bank, and TriState Capital Bank are required to maintain minimum leverage ratios (defined as tier 1 capital divided by adjusted average assets), as well as minimum ratios of tier 1 capital, common equity tier 1 (“CET1”), and total capital to risk-weighted assets. These capital ratios incorporate quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under the regulatory capital rules and are subject to qualitative judgments by the regulators about components, risk-weightings, and other factors. We calculate these ratios in order to assess compliance with both regulatory requirements and internal capital policies. In order to maintain our ability to take certain capital actions, including dividends and common equity repurchases, and to make bonus payments, we must hold a capital conservation buffer above our minimum risk-based capital requirements. As of September 30, 2022, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirement and each entity was categorized as “well-capitalized.” To meet requirements for capital adequacy or to be categorized as “well-capitalized,” RJF must maintain minimum Tier 1 leverage, Tier 1 capital, CET1, and Total capital amounts and ratios as set forth in the following table. Actual Requirement for capital To be well-capitalized under regulatory provisions $ in millions Amount Ratio Amount Ratio Amount Ratio RJF as of September 30, 2022: Tier 1 leverage $ 8,480 10.3 % $ 3,304 4.0 % $ 4,130 5.0 % Tier 1 capital $ 8,480 19.2 % $ 2,651 6.0 % $ 3,534 8.0 % CET1 $ 8,380 19.0 % $ 1,988 4.5 % $ 2,871 6.5 % Total capital $ 9,031 20.4 % $ 3,534 8.0 % $ 4,418 10.0 % RJF as of September 30, 2021: Tier 1 leverage $ 7,428 12.6 % $ 2,363 4.0 % $ 2,954 5.0 % Tier 1 capital $ 7,428 25.0 % $ 1,783 6.0 % $ 2,377 8.0 % CET1 $ 7,428 25.0 % $ 1,337 4.5 % $ 1,932 6.5 % Total capital $ 7,780 26.2 % $ 2,377 8.0 % $ 2,972 10.0 % As of September 30, 2022, RJF’s regulatory capital increase compared to September 30, 2021 was driven by an increase in equity primarily due to common and preferred stock issued in connection with the TriState Capital acquisition and positive earnings, partially offset by an increase in goodwill and intangible assets arising from the TriState Capital, Charles Stanley, and SumRidge Partners acquisitions (see Note 3 for further information) as well as dividends paid to our investors and share repurchases. RJF’s Tier 1 and Total capital ratios decreased compared to September 30, 2021, resulting from an increase in risk-weighted assets, partially offset by the increase in regulatory capital. The increase in risk-weighted assets was primarily driven by increases in bank loans and available-for-sale securities and unfunded lending commitments resulting from the TriState Capital acquisition and growth at Raymond James Bank, and an increase in trading assets resulting from the SumRidge Partners acquisition. RJF’s Tier 1 leverage ratio at September 30, 2022 decreased compared to September 30, 2021, due to higher average assets, driven by increases in bank loans, available-for-sale securities, goodwill and intangible assets, as well as trading assets. The increase in average assets was partially offset by the increase in regulatory capital. To meet the requirements for capital adequacy or to be categorized as “well-capitalized,” Raymond James Bank and TriState Capital Bank must maintain Tier 1 leverage, Tier 1 capital, CET1, and Total capital amounts and ratios as set forth in the following tables. Our intention is to maintain Raymond James Bank’s and TriState Capital Bank’s “well-capitalized” status. In the unlikely event that Raymond James Bank or TriState Capital Bank failed to maintain their “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 result in higher FDIC premiums, but would not significantly impact our operations. Actual Requirement for capital To be well-capitalized under regulatory provisions $ in millions Amount Ratio Amount Ratio Amount Ratio Raymond James Bank as of September 30, 2022: Tier 1 leverage $ 2,998 7.1 % $ 1,695 4.0 % $ 2,119 5.0 % Tier 1 capital $ 2,998 12.1 % $ 1,485 6.0 % $ 1,979 8.0 % CET1 $ 2,998 12.1 % $ 1,113 4.5 % $ 1,608 6.5 % Total capital $ 3,308 13.4 % $ 1,979 8.0 % $ 2,474 10.0 % Raymond James Bank as of September 30, 2021: Tier 1 leverage $ 2,626 7.4 % $ 1,411 4.0 % $ 1,763 5.0 % Tier 1 capital $ 2,626 13.4 % $ 1,177 6.0 % $ 1,569 8.0 % CET1 $ 2,626 13.4 % $ 883 4.5 % $ 1,275 6.5 % Total capital $ 2,873 14.6 % $ 1,569 8.0 % $ 1,962 10.0 % Raymond James Bank’s regulatory capital increased compared to September 30, 2021, driven by an increase in equity due to positive earnings, offset by dividends paid to RJF. Raymond James Bank’s Tier 1 and Total capital ratios decreased compared to September 30, 2021, due to an increase in risk-weighted assets, primarily resulting from increases in bank loans, available-for-sale securities, and deferred tax assets, partially offset by the increase in regulatory capital. Raymond James Bank’s Tier 1 leverage ratio at September 30, 2022 decreased compared to September 30, 2021 due to higher average assets, driven primarily by the increases in bank loans and available-for-sale securities. On June 1, 2022, we completed our acquisition of TriState Capital, including TriState Capital Bank. See Note 3 for additional information on this acquisition. Actual Requirement for capital To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio TriState Capital Bank as of September 30, 2022: Tier 1 leverage $ 1,093 7.3 % $ 601 4.0 % $ 752 5.0 % Tier 1 capital $ 1,093 14.1 % $ 463 6.0 % $ 618 8.0 % CET1 $ 1,093 14.1 % $ 348 4.5 % $ 502 6.5 % Total capital $ 1,122 14.5 % $ 618 8.0 % $ 772 10.0 % Our banks may pay dividends to RJF without prior approval of their respective regulators subject to certain restrictions including retained net income and targeted regulatory capital ratios. Dividends paid to RJF from our banks may be limited to the extent that capital is needed to support their balance sheet growth. 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. As a member firm of the Financial Industry Regulatory Authority (“FINRA”), RJ&A is subject to FINRA’s capital requirements, which are substantially the same as Rule 15c3-1. Rule 15c3-1 provides for an “alternative net capital requirement,” which RJ&A has elected. Regulations require that minimum net capital, as defined, be equal to the greater of $1.5 million or 2% of aggregate debit items arising from client balances. FINRA may impose certain restrictions, such as restricting withdrawals of equity capital, if a member firm were to fall below a certain threshold or fail to meet minimum net capital requirements. As of September 30, 2022, RJ&A had excess net capital available to remit dividends to RJF, some of which may be remitted without prior regulatory approval and the remainder may be remitted in conformity with all required regulatory rules or approvals. The following table presents the net capital position of RJ&A. September 30, $ in millions 2022 2021 Raymond James & Associates, Inc.: (Alternative Method elected) Net capital as a percent of aggregate debit items 40.9 % 72.1 % Net capital $ 1,152 $ 2,035 Less: required net capital (56) (56) Excess net capital $ 1,096 $ 1,979 The decrease in RJ&A’s net capital and excess net capital as of September 30, 2022 as compared to September 30, 2021 reflected the impact of significant dividends from RJ&A to RJF during the year ended September 30, 2022. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE All share and earnings per share information has been retroactively adjusted to reflect the September 21, 2021 three-for-two stock split described in Note 20. The following table presents the computation of basic and diluted earnings per common share. Year ended September 30, $ in millions, except per share amounts 2022 2021 2020 Income for basic earnings per common share: Net income available to common shareholders $ 1,505 $ 1,403 $ 818 Less allocation of earnings and dividends to participating securities (3) (2) (1) Net income available to common shareholders after participating securities $ 1,502 $ 1,401 $ 817 Income for diluted earnings per common share: Net income available to common shareholders $ 1,505 $ 1,403 $ 818 Less allocation of earnings and dividends to participating securities (3) (2) (1) Net income available to common shareholders after participating securities $ 1,502 $ 1,401 $ 817 Common shares: Average common shares in basic computation 209.9 205.7 206.4 Dilutive effect of outstanding stock options and certain RSUs 5.4 5.5 3.9 Average common and common equivalent shares used in diluted computation 215.3 211.2 210.3 Earnings per common share: Basic $ 7.16 $ 6.81 $ 3.96 Diluted $ 6.98 $ 6.63 $ 3.88 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 0.1 0.1 2.3 The allocation of earnings and dividends to participating securities in the preceding table represents dividends paid during the year to participating securities, consisting of certain RSUs, as well as the RSAs granted as part of our acquisition of TriState Capital, plus an allocation of undistributed earnings to such participating securities. Participating securities and related dividends paid on these participating securities were insignificant for the years ended September 30, 2022, 2021 and 2020. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We currently operate through the following five segments: PCG; Capital Markets; Asset Management; Bank; and Other. The 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. 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 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, investment advisory and securities transaction services in the U.S., Canada, and the U.K. for which we generally charge either asset-based fees or sales commissions. The PCG segment also earns revenues for distribution and related support services performed related to mutual funds, fixed and variable annuities and insurance products. The segment includes servicing fee revenues from third-party mutual fund and annuity companies whose products we distribute and from banks to which we sweep a portion of our clients’ cash deposits as part of the RJBDP, our multi-bank sweep program. The segment also includes net interest earnings primarily on client margin loans, cash balances, and assets segregated for regulatory purposes, net of interest paid to clients on cash balances in the CIP. Our Capital Markets segment conducts investment banking, institutional sales, securities trading, equity research, and the syndication and management of investments in low-income housing funds and funds of a similar nature. We primarily conduct these activities in the U.S., Canada, and Europe. Our Asset Management segment earns asset management and related administrative fees for providing asset management, portfolio management and related administrative services to retail and institutional clients. This segment oversees a portion of our fee-based assets under administration for our PCG clients through our Asset Management Services division and through Raymond James Trust, N.A. This segment also provides asset management services through Raymond James Investment Management for certain retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage. Our Bank segment provides various types of loans, including SBL, corporate loans, residential mortgage loans, and tax-exempt loans. This segment is active in corporate loan syndications and participations and lending directly to clients. This segment also provides FDIC-insured deposit accounts, including to clients of our broker-dealer subsidiaries, as well as other deposit and liquidity management products and services. This segment generates net interest income principally through the interest income earned on loans and an investment portfolio of available-for-sale 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 investments, interest income on certain corporate cash balances, certain acquisition-related expenses, primarily comprised of professional fees, and certain corporate overhead costs of RJF that are not allocated to operating segments, including the interest costs on our public debt and any losses on the extinguishment of such debt. The Other segment also includes the reduction in workforce expenses, primarily the result of the elimination of certain positions, that occurred in our fiscal fourth quarter of 2020 in response to the economic environment at that time. Refer to Notes 3 and 11 for additional information regarding our fiscal year 2022 acquisitions of Charles Stanley, TriState Capital, and SumRidge Partners. The following table presents information concerning operations in these segments, inclusive of our acquisitions. Year ended September 30, $ in millions 2022 2021 2020 Net revenues: Private Client Group $ 7,710 $ 6,611 $ 5,552 Capital Markets 1,809 1,885 1,291 Asset Management 914 867 715 Bank 1,084 672 765 Other (50) (8) (82) Intersegment eliminations (464) (267) (251) Total net revenues $ 11,003 $ 9,760 $ 7,990 Pre-tax income/(loss): Private Client Group $ 1,030 $ 749 $ 539 Capital Markets 415 532 225 Asset Management 386 389 284 Bank 382 367 196 Other (191) (246) (192) Total pre-tax income $ 2,022 $ 1,791 $ 1,052 No individual client accounted for more than ten percent of revenues in any of the years presented. The following table presents our net interest income on a segment basis. Year ended September 30, $ in millions 2022 2021 2020 Net interest income/(expense): Private Client Group $ 207 $ 113 $ 132 Capital Markets 9 6 9 Asset Management 2 — 1 Bank 1,053 642 738 Other (68) (88) (58) Net interest income $ 1,203 $ 673 $ 822 The following table presents our total assets on a segment basis. September 30, $ in millions 2022 2021 Total assets: Private Client Group $ 17,770 $ 20,270 Capital Markets 3,951 2,457 Asset Management 556 476 Bank 56,737 36,154 Other 1,937 2,534 Total $ 80,951 $ 61,891 The following table presents goodwill, which was included in our total assets, on a segment basis. September 30, $ in millions 2022 2021 Goodwill: Private Client Group $ 550 $ 417 Capital Markets 274 174 Asset Management 69 69 Bank 529 — Total $ 1,422 $ 660 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 net revenues and pre-tax income classified by major geographic area in which they were earned. Year ended September 30, $ in millions 2022 2021 2020 Net revenues: U.S. $ 10,065 $ 9,067 $ 7,446 Canada 542 485 386 Europe 396 208 158 Total $ 11,003 $ 9,760 $ 7,990 Pre-tax income/(loss): U.S. $ 1,907 $ 1,701 $ 1,028 Canada 83 53 29 Europe 32 37 (5) Total $ 2,022 $ 1,791 $ 1,052 The following table presents our total assets by major geographic area in which they were held. September 30, $ in millions 2022 2021 Total assets: U.S. $ 74,428 $ 57,952 Canada 3,631 3,724 Europe 2,892 215 Total $ 80,951 $ 61,891 The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held. September 30, $ in millions 2022 2021 Goodwill: U.S. $ 1,250 $ 619 Canada 23 25 Europe 149 16 Total $ 1,422 $ 660 |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | 12 Months Ended |
Sep. 30, 2022 | |
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. The broker-dealer subsidiaries of the Parent, including RJ&A our principal domestic broker-dealer, and certain other subsidiaries are required to maintain a minimum amount of net capital due to regulatory requirements. RJ&A is further required by certain covenants in its borrowing agreements to maintain minimum net capital equal to 10% of aggregate debit balances. At September 30, 2022, each of these subsidiaries exceeded their minimum net capital requirements (see Note 24 for further information). Of the Parent’s net assets as of September 30, 2022, approximately $125 million of its investment in RJ&A and RJFS was available for distribution to the Parent without further regulatory approvals. As of September 30, 2022, approximately $5.1 billion of net assets of our U.S. broker-dealers and bank subsidiaries were restricted from distributions to the parent due to regulatory or other restrictions without prior approval of the respective entity’s regulator. In addition, a large portion of our non-U.S. subsidiaries’ net assets was held to meet regulatory requirements and was not available for use by the parent. Cash and cash equivalents of $1.91 billion and $1.16 billion as of September 30, 2022 and 2021, respectively, were held directly by RJF in depository accounts at third-party financial institutions, held in depository accounts at Raymond James Bank, or were loaned by the Parent to RJ&A, which RJ&A had invested on behalf of RJF, or otherwise deployed in its normal business activities. The loan to RJ&A, which totaled $1.30 billion and $649 million as of September 30, 2022 and 2021, respectively, is included in “Intercompany receivables from subsidiaries” in the table below. The amount held in depository accounts at Raymond James Bank was $260 million as of September 30, 2022, of which $230 million was available on demand without restriction. As of September 30, 2021, $229 million was held in depository accounts at Raymond James Bank, of which $152 million was available on demand without restriction. See Notes 16, 17, 19 and 24 for more information regarding borrowings, commitments, contingencies and guarantees, and regulatory capital requirements of the Parent and its subsidiaries. In the following tables, “bank subsidiaries” refers to Raymond James Bank and TriState Capital Bank, including its holding company which is a subsidiary of RJF. The following table presents the Parent’s statements of financial condition. September 30, $ in millions 2022 2021 Assets: Cash and cash equivalents $ 629 $ 527 Assets segregated for regulatory purposes and restricted cash ( $1 and $1 at fair value) 31 478 Intercompany receivables from subsidiaries (primarily non-bank subsidiaries) 1,624 877 Investments in consolidated subsidiaries: Bank subsidiaries 3,549 2,594 Non-bank subsidiaries 5,611 5,703 Goodwill and identifiable intangible assets, net 32 32 All other 907 1,055 Total assets $ 12,383 $ 11,266 Liabilities and equity: Accrued compensation, commissions and benefits $ 715 $ 798 Intercompany payables to subsidiaries: Bank subsidiaries — 2 Non-bank subsidiaries 17 33 Senior notes payable 2,038 2,037 All other 155 151 Total liabilities 2,925 3,021 Equity 9,458 8,245 Total liabilities and equity $ 12,383 $ 11,266 The following table presents the Parent’s statements of income. Year ended September 30, $ in millions 2022 2021 2020 Revenues: Dividends from non-bank subsidiaries $ 2,002 $ 257 $ 634 Dividends from bank subsidiaries 60 — 130 Interest from subsidiaries 23 9 18 Interest income 3 1 3 All other 17 21 23 Total revenues 2,105 288 808 Interest expense (93) (97) (87) Net revenues 2,012 191 721 Non-interest expenses: Compensation, commissions and benefits (1) 98 81 63 Non-compensations expenses: Communications and information processing 6 5 6 Occupancy and equipment 1 1 1 Business development 20 19 18 Losses on extinguishment of debt — 98 — Intercompany allocations and charges (8) (14) (16) Other 64 30 23 Total non-compensation expenses 83 139 32 Total non-interest expenses 181 220 95 Pre-tax income/(loss) before equity in undistributed net income of subsidiaries 1,831 (29) 626 Income tax benefit (20) (99) (58) Income before equity in undistributed net income of subsidiaries 1,851 70 684 Equity in undistributed net income of subsidiaries (2) (342) 1,333 134 Net income 1,509 1,403 818 Preferred stock dividends 4 — — Net income available to common shareholders $ 1,505 $ 1,403 $ 818 (1) The year ended September 30, 2020 included the portion of the reduction in workforce expenses incurred during the fiscal fourth quarter of 2020 that related to the Parent. (2) The year ended September 30, 2022 included significant dividends from RJ&A to RJF, which were in excess of net income for the period. The following table presents the Parent’s statements of cash flows. Year ended September 30, $ in millions 2022 2021 2020 Cash flows from operating activities: Net income $ 1,509 $ 1,403 $ 818 Adjustments to reconcile net income to net cash provided by operating activities: Loss on investments 1 5 4 Unrealized (gain)/loss on company-owned life insurance policies, net of expenses 159 (157) (50) Equity in undistributed net income of subsidiaries 342 (1,333) (134) Losses on extinguishment of debt — 98 — Other 161 94 102 Net change in: Intercompany receivables (23) (14) 126 Other assets 40 (35) 24 Intercompany payables (18) (14) (70) Other payables 3 38 43 Accrued compensation, commissions and benefits (82) 202 73 Net cash provided by operating activities 2,092 287 936 Cash flows from investing activities: Investments in subsidiaries (1,092) (420) (106) (Advances to)/repayments from subsidiaries, net (723) 1,039 (885) Investment in note receivable (125) — — Proceeds from sales of investments 7 2 9 Purchase of investments in company-owned life insurance policies, net (63) (36) (55) Net cash provided by/(used in) investing activities (1,996) 585 (1,037) Cash flows from financing activities: Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements (216) (151) (291) Dividends on preferred and common stock (277) (218) (205) Exercise of stock options and employee stock purchases 52 53 62 Proceeds from senior note issuances, net of debt issuance costs paid — 737 494 Extinguishment of senior notes payable — (844) — Net cash provided by/(used in) financing activities (441) (423) 60 Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash (345) 449 (41) Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year 1,004 555 596 Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of year $ 659 $ 1,004 $ 555 Cash and cash equivalents $ 629 $ 527 $ 478 Cash and cash equivalents segregated for regulatory purposes and restricted cash 30 477 77 Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of year $ 659 $ 1,004 $ 555 Supplemental disclosures of cash flow information: Cash paid for interest $ 117 $ 89 $ 72 Cash paid for income taxes, net $ 24 $ 35 $ 32 Common stock issued as consideration for TriState Capital acquisition $ 778 $ — $ — Restricted stock awards issued as consideration for TriState Capital acquisition $ 28 $ — $ — Preferred stock issued as consideration for TriState Capital acquisition $ 120 $ — $ — Effective settlement of note receivable for TriState Capital acquisition $ 123 $ — $ — |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
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 of this Form 10-K. 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 (“U.S.”) generally accepted accounting principles (“GAAP”) requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and 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 We reclassified acquisition and disposition-related expenses which in prior years were reported separately as “Acquisition and disposition-related expenses” on our Consolidated Statements of Income and Comprehensive Income to the respective income statement line items that align with the nature of the expenses, including reclassifications to “Compensation, commissions, and benefits,” “Professional fees,” or “Other” expenses, as appropriate. Prior years have been conformed to the current presentation. In addition to the reclassifications discussed above, certain other prior period amounts have been reclassified to conform to the current period’s presentation. |
Recognition of non-interest revenues | Recognition of non-interest revenues Revenue from contracts with customers is recognized when promised services are delivered to our customers in an amount we expect to receive in exchange for those services (i.e., the transaction price). Contracts with customers can include multiple services, which are accounted for as separate “performance obligations” if they are determined to be distinct. Our performance obligations to our customers are generally satisfied when we transfer the promised service to our customer, either at a point in time or over time. Revenue from a performance obligation transferred at a point in time is recognized at the time that the customer obtains control over the promised service. Revenue from our performance obligations satisfied over time is recognized in a manner that depicts our performance in transferring control of the service, which is generally measured based on time elapsed, as our customers receive the benefit of our services as they are provided. Payment for the majority of our services is considered to be variable consideration, as the amount of revenue we expect to receive is subject to factors outside of our control, including market conditions. Variable consideration is only included in revenue when amounts are not subject to significant reversal, which is generally when uncertainty around the amount of revenue to be received is resolved. We record deferred revenue from contracts with customers when payment is received prior to the performance of our obligation to the customer. We involve third parties in providing services to the customer for certain of our contracts with customers. We are generally deemed to control the promised services before they are transferred to the customer. Accordingly, we present the related revenues gross of the related costs. We have elected the practical expedient allowed by the accounting guidance to not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. See Note 21 for additional information on our revenues. Asset management and related administrative fees We earn asset management and related administrative fees for performing asset management, portfolio management and related administrative services to retail and institutional clients. Such fees are generally calculated as a percentage of the value of client assets in fee-based accounts in our Private Client Group (“PCG”) segment or on the net asset value of assets managed by our Raymond James Investment Management division (“Raymond James Investment Management,” formerly Carillon Tower Advisers) in our Asset Management segment. The value of these assets is impacted by market fluctuations and net inflows or outflows of assets. Fees are generally collected quarterly and are based on balances either at the beginning of the quarter or the end of the quarter, or average balances throughout the quarter. Asset management and related administrative fees are recognized on a monthly basis (i.e., over time) as the services are performed. Revenues related to fee-based accounts under administration in PCG are shared by the PCG and Asset Management segments, the amount of which depends on whether clients are invested in “managed programs” that are overseen by our Asset Management segment (i.e., included in financial assets under management (“AUM”) in the Asset Management segment) and the administrative services provided. Asset management revenues earned by Raymond James Investment Management for retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage are recorded entirely in the Asset Management segment. Brokerage revenues Securities commissions Mutual and other fund products and insurance and annuity products We earn revenues for distribution and related support services performed related to mutual and other funds, fixed and variable annuities and insurance products. Depending on the product sold, we may receive an upfront fee for our services, a trailing commission, or some combination thereof. Upfront commissions received are generally based on a fixed rate applied, as a percentage, to amounts invested or the value of the contract at the time of sale and are generally recognized at the time of sale. Trailing commissions are generally based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. Trailing commissions on eligible products are generally received monthly or quarterly in periods while our client holds the investment or holds the contract. As these trailing commissions are based on factors outside of our control, including market movements and client behavior (i.e., how long clients hold their investment, insurance policy or annuity contract), such revenue is recognized when it is probable that a significant reversal will not occur. Equities, ETFs and fixed income products We earn commissions for executing and clearing transactions for customers, primarily in listed and over-the-counter equity securities, including exchange-traded funds (“ETFs”), and options. Such revenues primarily arise from transactions for retail clients in our PCG segment, as well as services related to sales and trading activities transacted on an agency basis in our Capital Markets segment. Commissions are recognized on trade date, generally received from the customer on settlement date, and we record a receivable between the trade date and the date collected from the customer. Principal transactions Principal transactions include revenues from clients’ purchases and sales of financial instruments, including fixed income and equity securities and derivatives, in which we transact on a principal basis. We make markets in certain fixed income securities and we carry inventories of financial instruments to facilitate such transactions. The gains and losses on such inventories, both realized and unrealized, are reported as principal transactions revenues. Account and service fees Mutual fund and annuity service fees We earn servicing fees for providing sales and marketing support to third-party financial entities and for supporting the availability and distribution of their products on our platforms. We also earn servicing fees for accounting and administrative services provided to such parties. These fees, which are received monthly or quarterly, are generally based on the market value of the related assets, a fixed annual fee or, in certain cases, the number of positions in such programs, and are recognized over time as the services are performed. Raymond James Bank Deposit Program fees We earn servicing fees from various banks for administrative services we provide related to our clients’ deposits that are swept to such banks as part of the Raymond James Bank Deposit Program (“RJBDP”), our multi-bank sweep program. The amounts received from third-party banks are variable in nature and fluctuate based on client cash balances in the program, as well as the level of short-term interest rates and the interest paid to clients by the third-party banks on balances in the RJBDP. The fees are earned over time as the related administrative services are performed and are received monthly. Our PCG segment also earns servicing fees from our Bank segment, which is calculated as the greater of a base servicing fee or a net yield equivalent to the average yield that the firm would otherwise receive from third-party banks in the RJBDP. These intercompany fees, and the offsetting intercompany expense in the Bank segment, are eliminated in consolidation. Investment banking We earn revenue from investment banking transactions, including public and private equity and debt financing, merger & acquisition advisory services, and other advisory services. Underwriting revenues, which are typically deducted from the proceeds remitted to the issuer, are recognized on trade date if there is no uncertainty or contingency related to the amount to be received. Fees from merger & acquisition and advisory assignments are generally recognized at the time the services related to the transaction are completed under the terms of the engagement. Fees for merger & acquisition and advisory services are typically received upfront, as non-refundable retainer fees, and/or upon completion of a transaction as a success fee. Expenses related to investment banking transactions are generally deferred until the related revenue is recognized or the assignment is otherwise concluded. Such expenses are included in “Professional fees” on our Consolidated Statements of Income and Comprehensive Income. |
Cash and cash equivalents | Cash and cash equivalents Our cash equivalents include money market funds or highly liquid investments with maturities of 3 months or less as of our date of purchase, other than those held for trading purposes. |
Assets segregated for regulatory purposes and restricted cash | Assets segregated for regulatory purposes and restricted cash Our broker-dealers carrying client accounts are generally subject to requirements to maintain cash or qualified securities on deposit in a segregated reserve account for the exclusive benefit of their clients. Such amounts are included in “Assets segregated for regulatory purposes and restricted cash” on our Consolidated Statements of Financial Condition as of each respective period end. These amounts include cash and cash equivalents, which represent highly liquid investments with maturities of 3 months or less as of our date of purchase, and highly liquid securities, such as U.S. Treasury securities (“U.S” Treasuries”), which have maturities of greater than 3 months as of our date of purchase and are carried at fair value on our Consolidated Statements of Financial Condition. We may also from time-to-time be required to restrict cash for other corporate purposes. In addition, Raymond James Ltd. (“RJ Ltd.”) holds client Registered Retirement Savings Plan funds in trust in accordance with Canadian retirement plan regulations. |
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 repurchaseWe purchase securities under short-term agreements to resell (“reverse repurchase agreements”). Additionally, we sell securities under agreements to repurchase (“repurchase agreements”). Reverse repurchase agreements and repurchase agreements are accounted for as collateralized agreements and collateralized financings, respectively, and are carried at contractual amounts plus accrued interest. We receive collateral with a fair value that is typically equal to or in excess of the principal amount loaned under reverse repurchase agreements to mitigate credit exposure. To ensure that the market value of the underlying collateral remains sufficient, collateral values are evaluated on a daily basis, and collateral is obtained from or returned to the counterparty when contractually required. Under repurchase agreements, we are required to post collateral in an amount that typically 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. Reverse repurchase agreements and repurchase agreements are included in “Collateralized agreements” and “Collateralized financings,” respectively, on our Consolidated Statements of Financial Condition. |
Securities borrowed and securities loaned | Securities borrowed and securities loanedWe may 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 in our broker-dealer operations 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 or others we have received as collateral. Securities borrowed and securities loaned transactions are accounted for as collateralized agreements and collateralized financings, respectively, and are recorded at the amount of cash advanced or received. In securities borrowed transactions, we are required to deposit cash with the lender in an amount which is generally in excess of the market value of securities borrowed. With respect to securities loaned, we generally receive cash in an amount in excess of the market value of securities loaned. We evaluate the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as necessary. Securities borrowed and securities loaned are included in “Collateralized agreements” and “Collateralized financings,” respectively, on our Consolidated Statements of Financial Condition. |
Financial instruments, financial instrument liabilities, at fair value | Financial instruments, financial instrument liabilities, at fair value “Financial instruments” and “Financial instrument liabilities” 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 unadjusted 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 judgment or estimation. These instruments are generally valued using discounted cash flow techniques or market multiples. 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. Valuation techniques and inputs The fair values for certain of our financial instruments are derived using pricing models and other valuation techniques that involve 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 less frequently 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 trading volume. We have determined the market for certain other types of financial instruments to be uncertain or inactive as of both September 30, 2022 and 2021. As a result, the valuation of these financial instruments included management judgment in determining the relevance and reliability of market information available. The level within the fair value hierarchy, specific valuation techniques, and other significant accounting policies pertaining to financial instruments at fair value on our Consolidated Statements of Financial Condition are described as follows. Trading assets and trading liabilities Trading assets and trading liabilities 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 financial instruments. Trading assets and trading liabilities are recorded at fair value with realized and unrealized gains and losses reflected in “Principal transactions” in current period net income. When available, we use quoted prices in active markets to determine the fair value of our trading assets and trading liabilities. 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 prepayments and default probabilities. We utilize prices from third-party pricing services to corroborate our estimates of fair value. Depending upon the type of security, the pricing service may provide a listed price, a matrix price or use other methods. Securities valued using these techniques are classified within Level 2 of the fair value hierarchy. Within each broker-dealer subsidiary, we offset our long and short positions for identical securities recorded at fair value as part of our trading assets (long positions) and trading liabilities (short positions). |
Available-for-sale securities | Available-for-sale securities Available-for-sale securities are classified at the date of purchase. They are comprised primarily of agency mortgage-backed securities (“MBS”), agency collateralized mortgage obligations (“CMOs”), and other securities which a re guaranteed by the U.S. government or its agencies. Available-for-sale securities are used as part of our 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. The fair values of our available-for-sale securities are determined by obtaining prices from third-party pricing services, which are primarily based on valuation models. The third-party pricing services provide comparable price evaluations utilizing observable market data for similar securities. Such observable market data is 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. We utilize other third-party pricing services to corroborate the pricing information obtained from the primary pricing service. Available-for-sale securities are valued using valuation techniques that rely on observable market data. Substantially all available-for-sale securities are classified within Level 2 of the fair value hierarchy; however, certain available-sale-securities are classified within Level 1 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” on 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 within the same subsidiary. 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. Generally the collateral we accept is in the form of either cash or other marketable securities. Where permitted, we elect to net-by-counterparty certain derivatives entered into under a legally enforceable master netting agreement and, therefore, the fair value of those derivatives are netted by counterparty and subsidiary on our Consolidated Statements of Financial Condition. As we elect to net-by-counterparty the fair value of such derivatives, we also net-by-counterparty and subsidiary cash collateral exchanged as part of those derivative agreements. We may also require certain counterparties to make a cash deposit at the inception of a derivative agreement, referred to as “initial margin.” This initial margin is included in “Cash and cash equivalents” and “Other payables” on our Consolidated Statements of Financial Condition. We are also required to maintain deposits with the clearing organizations we utilize to clear certain of our interest rate derivatives, for which we have posted securities as collateral. This initial margin is included as a component of “Other investments” and “Available-for-sale securities” on 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. Interest rate derivatives We enter into interest rate derivatives as part of our trading activities 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. In addition, we enter into interest rate derivatives with clients of our Bank segment, including clients with whom we have entered into loans or other lending arrangements, to facilitate their respective interest rate risk management strategies. 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. Realized and unrealized gains or losses on such derivatives are recorded in “Principal transactions” on our Consolidated Statements of Income and Comprehensive Income. The fair values of these interest rate derivatives are obtained from internal or third-party 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 these model inputs can be observed in liquid markets and the models do not require significant judgment, such derivatives are classified within Level 2 of the fair value hierarchy. We corroborate the output of our internal pricing models by preparing an independent calculation using a third-party model. Our fixed income business also holds to-be-announced security contracts (“TBAs”) that are accounted for as derivatives, which are classified within Level 1 of the fair value hierarchy. We also facilitate matched book derivative transactions in which we enter into interest rate derivatives with clients. For every matched book derivative we enter into with a client, we also enter 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 matched book derivatives is administered directly between the client and the third-party financial institution. Due to this pass-through transaction structure, we have completely mitigated the market and credit risk on these matched book derivatives. As a result, matched book 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. Since any changes in fair value are completely offset by a change in fair value of the offsetting derivative, there is no net impact on our Consolidated Statements of Income and Comprehensive Income from changes in the fair value of these derivatives. We recognize revenue on these matched book derivatives 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. The difference between the present value of these cash flows at the date of inception and the gross amount potentially received is accreted to revenue over the term of the contract. The revenue from these transactions is included within “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. We enter into primarily floating-rate advances from the Federal Home Loan Bank (“FHLB”) to, in part, fund lending and investing activities in our Bank segment and then enter into interest rate contracts which swap variable interest payments on such borrowings for fixed interest payments. These interest rate swaps are designated as cash flow hedges and effectively fix a portion of our Bank segment’s cost of funds and mitigate a portion of the market risk associated with its lending and investing activities. The gain or loss on our Bank segment’s cash flow hedges 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 swaps 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 curves. We validate these observable inputs by preparing an independent calculation using a secondary model. Cash flows from hedging activities are included in the same category as the items being hedged. Cash flows from derivative instruments used to manage interest rates are classified as operating activities. We classify these derivatives within Level 2 of the fair value hierarchy. Foreign-exchange derivatives We enter into three-month forward foreign exchange contracts primarily to hedge the risks related to Raymond James Bank’s investment in its Canadian subsidiary, as well as its 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 gain or loss related to these designated net investment hedges 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 undesignated derivative instruments are recorded in “Other” revenues on 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 values of our forward foreign exchange contracts are determined by obtaining valuations from a third-party pricing service or model. These valuations are based on observable inputs such as spot rates, forward 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 valuation model. These forward foreign exchange contracts are classified within Level 2 of the fair value hierarchy. |
Other investments | Other investments Other investments consist primarily of private equity investments, securities pledged as collateral with clearing organizations, and term deposits with Canadian financial institutions. Our securities pledged as collateral with clearing organizations, which primarily include U.S. Treasuries, and term deposits are categorized within Level 1 of the fair value hierarchy. Private equity investments consist primarily of investments in third-party private equity funds. The private equity funds in which we invest are primarily closed-end funds in which our investments are generally not eligible for redemption. We receive distributions from these funds as the underlying assets are liquidated or distributed. These investments are measured at fair value with any gains or losses recognized in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. The fair value of substantially all of our private equity investments are determined utilizing the net asset value (“NAV”) of the fund as a practical expedient with the remainder utilizing Level 3 valuation techniques. |
Fractional shares | Fractional sharesWithin our broker-dealer subsidiaries, when dividend reinvestment programs or other corporate action events result in clients receiving a share quantity that is not a whole number, we transact in the fractional shares on a principal basis. We include these fractional shares in “Other assets” in our Consolidated Statements of Financial Condition and record an associated liability to the client in “Other payables” as we must fulfill our clients’ future fractional share redemptions. We account for the fractional share assets and the liability to the client at fair value. The fair values of the fractional share assets and liabilities are determined based on quoted prices in active markets and are classified within Level 1 of the fair value hierarchy. |
Brokerage client receivables, net and Other receivables, net | Brokerage client receivables, net Brokerage client receivables include receivables from the clients of our broker-dealer subsidiaries and are principally for amounts due on cash and margin transactions. Such receivables are generally collateralized by securities owned by the clients. Brokerage client receivables are reported at their outstanding principal balance, net of any allowance for credit losses. See the “Allowance for credit losses” section below for a discussion of our application of the practical expedient under the current expected credit losses (“CECL”) guidance for financial assets secured by collateral. Securities beneficially owned by clients, including those that collateralize margin or other similar transactions, are not reflected on our Consolidated Statements of Financial Condition (see Note 7 for additional information regarding this collateral). Other receivables, net Other receivables primarily include receivables from brokers, dealers and clearing organizations, accrued fees from product sponsors, and accrued interest receivables. Receivables from brokers, dealers and clearing organizations primarily consist of cash deposits placed with clearing organizations, which includes cash deposited as initial margin, as well as receivables related to sales of securities which have traded but not yet settled including amounts receivable for securities failed to deliver. We present “Other receivables, net” on our Consolidated Statements of Financial Condition, net of any allowance for credit losses. However, these receivables generally have minimal credit risk due to the low probability of clearing organization default and the short-term nature of receivables related to securities settlements and therefore, the allowance for credit losses on such receivables is not significant. Any allowance for credit losses for other receivables is estimated using assumptions based on historical experience, current facts and other factors. We update these estimates through periodic evaluations against actual trends experienced. We include accrued interest receivables related to our financial assets in “Other receivables, net” on the Consolidated Statements of Financial Condition. We reverse any uncollectible accrued interest against interest income when the related financial asset is moved to nonaccrual status. Given that we write off uncollectible amounts in a timely manner, we do not recognize an allowance for credit losses against accrued interest receivable. |
Bank loans, net | Bank loans, net Loans held for investment Bank loans are comprised of loans originated or purchased by our Bank segment and include securities-based loans (“SBL”), commercial and industrial (“C&I”) loans, real estate investment trust (“REIT”) loans, tax-exempt loans, and commercial and residential real estate loans. Other than the loans acquired in the TriState Capital acquisition which were recorded at acquisition-date fair value (see Note 3 for additional information), 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 or less any discounts received in connection with the purchase of the loan, less the allowance for credit losses and net of deferred fees and costs on originated loans. 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 effective interest method, taking into consideration scheduled payments and prepayments. Loan discounts include fair value adjustments associated with our acquisition of TriState Capital Bank totaled $145 million as of June 1, 2022 and will be accreted into interest income over the weighted-average life of the underlying loans, estimated to approximate 4 years as of the acquisition date, which may vary based on prepayments. For revolving loans, the straight-line method is used based on the contractual term. Syndicated loans purchased in the secondary market are recorded on the trade date. Interest income is recorded on an accrual basis. We segregate our loan portfolio into six loan portfolio segments: SBL, C&I, commercial real estate (“CRE”) (primarily loans that are secured by income-producing properties and CRE construction loans), REIT (loans made to businesses that own or finance income-producing real estate), residential mortgage, and tax-exempt. Loans in our SBL portfolio segment are primarily collateralized by the borrower’s marketable securities at advance rates consistent with industry standards and, to a lesser extent, the cash surrender value of any applicable life insurance policies. These portfolio segments also serve as the portfolio loan classes for purposes of credit analysis. See the “Allowance for credit losses” section below for information on our allowance policies. 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 Small Business Administration (“SBA”) loans which we may purchase with intent to sell in the secondary market, as part of a securitization as discussed below, but have not yet been aggregated for securitization into pools, are each carried at the lower of cost or estimated fair value. The fair values 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 t he guaranteed portions of SBA loans and account f or 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 SBA loans may be sold prior to securitization. The fair values of the SBA loans are determined based upon their committed sales price, third-party price quotes, or are determined using a third-party pricing service. Once the SBA loans are securitized into a pool, the respective securities are classified as trading instruments based on our intention to sell the securitizations and are carried at fair value. 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. Corporate loans, which include C&I, CRE and REIT loans, as well as tax-exempt loans are designated as held for investment upon inception and recorded in loans receivable. If we subsequently designate a corporate or tax-exempt loan as held for sale, which generally occurs as part of our credit management activities, 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 on our Consolidated Statements of Income and Comprehensive Income, while interest collected on these assets is included in “Interest income.” Net unrealized losses are a component of “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. Unfunded lending 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 revolving lines of credit, 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. In the normal course of business, we issue or participate in the issuance of standby letters of credit whereby we provide 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, we 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 allowance for potential credit losses associated with these unfunded lending commitments is included in “Other payables” on our Consolidated Statements of Financial Condition. Refer to the “Allowance for credit losses” section that follows for a discussion of the reserve calculation methodology and Note 19 for further information about these commitments. 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 significantly from recognizing the revenue in the period the fee is earned. Unused corporate line of credit fees are accounted for on an accrual basis. Nonperforming assets Nonperforming assets are comprised of both nonperforming loans and other real estate owned. Nonperforming loans include those loans which have been placed on nonaccrual status and certain accruing loans which are 90 days or more past due and in the process of collection. Loans which have been restructured in a manner that grants a concession that would not normally be granted to a borrower experiencing financial difficulties are deemed to be troubled debt restructurings (“TDRs”). Loans structured as TDRs which are placed on nonaccrual status are considered nonperforming loans. Loans of all classes are generally 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 ceases. Interest is recognized using the cash method for SBL and substantially all residential mortgage loans, and the cost recovery method for corporate and tax-exempt loans thereafter until the loan qualifies for return to accrual status. Most loans (including 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. However, corporate loan TDRs have generally been partially charged off and therefore remain on nonaccrual status until the loan is fully repaid or sold. 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 credit 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 discounted cash flow valuation less estimated costs to sell, and are included in “Other assets” on our Consolidated Statements of Financial Condition. These nonrecurring fair value measurements are classified within Level 2 of the fair value hierarchy. Bank 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 a potential write down of the carrying value. After consideration of a number of factors, including 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 (i.e., loans that are rated special mention or worse as defined by bank regulators). Additional charge-offs are taken when the value of the collateral changes or there is an adverse change in the expected cash flows. A portion of our corporate loan portfolio is comprised of participations in either Shared National Credits (“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 and provides a synopsis of each loan’s regulatory classification, including loans that are designated for nonaccrual status and directed charge-offs. We are at least as critical with our nonaccrual designations, directed charge-offs, and classifications, potentially impacting our allowance for credit losses and charge-offs. Corporate loans are subject to our internal review procedures and regulatory review by either the Florida Office of Financial Regulation (“OFR”) and the Board of Governors of the Federal Reserve System (“the Fed”) or the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking and Securities (“PDBS”) as part of our respective banks’ regulatory examinations. Substantially all residential mortgage loans over 60 days past due are reviewed to determine loan status, collection strategy and charge-off recommendations. Charge-offs are typically 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 credit 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 for these valuations. If a loan remains in pre-foreclosure status for more than nine months, an updated valuation is obtained to determine if further charge-offs are necessary. |
Loans to financial advisors, net | Loans to financial advisors, net We offer loans to financial advisors for recruiting and retention purposes. The decision to extend credit to a financial advisor is generally based on their ability to generate future revenues. Loans offered are generally repaid over a five affiliation status (i.e., whether the advisor is actively affiliated with us or has terminated affiliation with us) is the primary credit risk factor within this portfolio. We present the outstanding balance of loans to financial advisors on our Consolidated Statements of Financial Condition, net of the allowance for credit losses. Refer to the allowance for credit losses section that follows for further information related to our allowance for credit losses on our loans to financial advisors. See Note 9 for additional information on our loans to financial advisors. Loans to financial advisors who are actively affiliated with us are considered past due once they are 30 days or more delinquent as to the payment of contractual interest or principal. Such loans are placed on nonaccrual status when we determine that full payment of contractual principal and interest is in doubt, or the loan is past due 180 days or more as to contractual interest or principal. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is written-off against interest income. Interest is recognized using the cash method for these loans thereafter until the loan qualifies for return to accrual status. Loans are returned to an accrual status when the loans have been brought contractually current with the original terms and have been maintained on a current basis for a reasonable period, generally six months. When we determine that it is likely a loan will not be collected in full, the loan is evaluated for a potential write down of the carrying value. After consideration of the borrower’s ability to restructure the loan, sources of repayment, and other factors affecting the borrower’s ability to repay the debt, the portion of the loan deemed a confirmed loss, if any, is charged-off. A charge-off is taken against the allowance for credit losses for the difference between the amortized cost and the amount we estimate will ultimately be collected. Additional charge-offs are taken if there is an adverse change in the expected cash flows. |
Allowance for credit losses | Allowance for credit losses We evaluate our held for investment bank loans, unfunded lending commitments, loans to financial advisors and certain other financial assets to estimate an allowance for credit losses (“ACL”) over the remaining life of the financial instrument. The remaining life of our financial assets is determined by considering contractual terms and expected prepayments, among other factors. We use multiple methodologies in estimating an allowance for credit losses and our approaches may differ by the subsidiary which holds the asset, the type of financial asset and the risk characteristics within each financial asset type. Our estimates are based on ongoing evaluations of the portfolio, the related credit risk characteristics, and the overall economic and environmental conditions affecting the financial assets. For certain of our financial assets with collateral maintenance provisions (e.g., SBL, collateralized agreements, and margin loans), we apply the practical expedient allowed under the CECL guidance in estimating an allowance for credit losses. We reasonably expect that borrowers (or counterparties, as applicable) will replenish the collateral as required. As a result, we estimate zero credit losses to the extent that the fair value equals or exceeds the related carrying value of the financial asset. When the fair value of the collateral securing the financial asset is less than the carrying value, qualitative factors such as historical experience (adjusted for current risk characteristics and economic conditions) as well as reasonable and supportable forecasts are considered in estimating the allowance for credit losses on the unsecured portion of the financial asset. Credit losses are charged-off against the allowance when we believe the uncollectibility of the financial asset is confirmed. Subsequent recoveries, if any, are credited to the allowance once received. A credit loss expense, or benefit, is recorded in earnings in an amount necessary to adjust the allowance for credit losses to our estimate as of the end of each reporting period. Our provision or benefit for credit losses for outstanding bank loans is included in “Bank loan provision/(benefit) for credit losses” on our Consolidated Statements of Income and Comprehensive Income and our provision or benefit for credit losses for all other financing receivables, including loans to financial advisors, and unfunded lending commitments, is included in “Other” expense. Loans We generally estimate the allowance for credit losses on our loan portfolios using credit risk models which incorporate relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable economic forecasts. After testing the reasonableness of a variety of economic forecast scenarios, each model is run using a single forecast scenario selected for such model. Our forecasts incorporate assumptions related to macroeconomic indicators including, but not limited to, U.S. gross domestic product (“GDP”), equity market indices, unemployment rates, and commercial real estate and residential home price indices. At the conclusion of our reasonable and supportable forecast period, which currently ranges from two to four years depending on the model and macroeconomic variables, we generally use a straight-line reversion approach over a one-year period, where applicable, to revert to historical loss information for C&I, REIT and tax-exempt loans. For CRE and residential mortgage loans, we incorporate a reasonable and supportable forecast of various macroeconomic variables over the remaining life of the assets. The development of the forecast used for CRE and residential mortgage loans incorporates an assumption that each macroeconomic variable will revert to a long-term expectation starting in years two to four of the forecast and largely completing within the first five years of the forecast. We assess the length of the reasonable and supportable forecast period and the reversion period, our reversion approach, our economic forecasts and our methodology for estimating the historical loss information on a quarterly basis. The allowance for credit losses on loans is generally evaluated and measured on a collective basis, based on the subsidiary which holds the asset, and then typically by loan portfolio segment, due to similar risk characteristics. When a loan does not share similar risk characteristics with other loans, the loan is evaluated for credit losses on an individual basis. Various risk characteristics are considered when determining whether the loan should be collectively evaluated including, but not limited to, financial asset type, internal risk ratings, collateral type, industry of the borrower, and historical or expected credit loss patterns. The allowance for credit losses on collectively evaluated loans for each respective bank is comprised of two components: (a) a quantitative allowance; and (b) a qualitative allowance, which is based on an analysis of model limitations and other factors not considered by the quantitative models. There are several factors considered in estimating the quantitative allowance for credit losses on collectively evaluated loans which generally include, but are not limited to, the internal risk rating, historical loss experience (including adjustments due to current risk characteristics and economic conditions), prepayments, borrower-controlled extensions, and expected recoveries. We use third-party data for historical information on collectively evaluated corporate loans (C&I, CRE and REIT loans) and residential mortgage loans. The qualitative portion of our allowance for credit losses includes certain factors that are not incorporated into the quantitative estimate and would generally require adjustments to the allowance for credit losses. These qualitative factors are intended to address developing trends related to each portfolio segment and would generally include, but are not limited to: changes in lending policies and procedures, including changes in underwriting standards and collection; our loan review process; volume and severity of delinquent loans; changes in the seasoning of the loan portfolio and the nature, volume and terms of loans; loan diversification and credit concentrations; changes in the value of underlying collateral; changes in legal and regulatory environments; local, regional, national and international economic conditions, or recent catastrophic events not already reflected in the quantitative estimate; and the routine time delay between when economic data is gathered, analyzed and distributed by our service providers and current macroeconomic developments. Held for investment bank loans Raymond James Bank: The allowance for credit losses for the C&I, CRE, REIT, residential mortgage, and tax-exempt portfolio segments is estimated using credit risk models that project a probability of default (“PD”), which is then multiplied by the loss given default (“LGD”) and the estimated exposure at default (“EAD”) at the loan-level for every period remaining in the loan’s expected life, including the maturity period. Historical information, combined with macroeconomic variables, are used in estimating the PD, LGD and EAD. Our credit risk models consider several factors when estimating the expected credit losses which may include, but are not limited to, financial performance and position, estimated prepayments, geographic location, industry or sector type, debt type, loan size, capital structure, initial risk levels and the economic outlook. Additional factors considered by the residential mortgage model include Fair Isaac Corporation (“FICO”) scores and loan-to-value (“LTV”) ratios. TriState Capital Bank: The allowance for credit losses utilizes a lifetime or cumulative loss rate methodology, which identifies macroeconomic factors and asset-specific characteristics correlated with credit loss experience including loan age, loan type, and leverage. The lifetime loss rate is applied to the amortized cost of the loan and builds on default and recovery probabilities by utilizing pool-specific historical loss rates. These pool-specific historical loss rates may be adjusted for forecasted macroeconomic variables and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets. Each quarter, the relevancy of historical loss information is assessed and management considers any necessary adjustments. Loss rates are based on historical averages for each loan pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables such as GDP, unemployment rates, corporate bond credit spreads and commercial property values, which management considers to be both reasonable and supportable. See Note 8 for further information about our bank loans, including credit quality indicators considered in developing the allowance for credit losses. Unfunded lending commitments We estimate credit losses on unfunded lending commitments using a methodology consistent with that used in the corresponding bank loan portfolio segment and also based on the expected funding probabilities for fully binding commitments. As a result, the allowance for credit losses for unfunded lending commitments will vary depending upon the mix of lending commitments and future funding expectations. All classes of individually evaluated unfunded lending commitments are analyzed in conjunction with the specific allowance process previously described. Loans to financial advisors The allowance for credit losses on loans to financial advisors is estimated using credit risk models that incorporate average annual loan-level loss rates and estimated prepayments based on historical data. The qualitative component of our estimate considers internal and external factors that are not incorporated into the quantitative estimate such as the reasonable and supportable forecast period. In estimating an allowance for credit losses on our individually-evaluated loans to financial advisors, we generally take into account the affiliation status of the financial advisor (i.e., whether the advisor is actively affiliated with us or has terminated affiliation with us), the borrower’s ability to restructure the loan, sources of repayment, and other factors affecting the borrower’s ability to repay the debt. Available-for-sale securities Credit losses on available-for-sale securities are limited to the difference between the security’s amortized cost basis, or for the securities acquired in the TriState Capital acquisition, the fair value of such securities on the acquisition date, and its fair value on the reporting date. Credit losses, if any, are recognized through an allowance for credit losses rather than as a direct reduction in amortized cost basis or the acquisition date fair value, as applicable. We expect zero credit losses on the portion of our available-for-sale securities portfolio that is comprised of U.S. government and government agency-backed securities and the related accrued interest receivable for which payments of both principal and interest are guaranteed, and for which we have not historically experienced any credit losses. In addition, we have the ability and intent to hold these securities and unrealized losses related to these available-for-sale securities are generally due to changes in market interest rates. On a quarterly basis, we reassess our expectation of zero credit losses on such securities, giving consideration to any relevant changes in the securities or the issuer. On a quarterly basis, we also evaluate non-agency-backed available-for-sale securities in an unrealized loss position for expected credit losses. We first determine whether it is more likely than not that we will sell the impaired securities, giving consideration to current and forecasted liquidity requirements, regulatory and capital requirements, and our securities portfolio management. If it is more likely than not that we will sell an available-for-sale security with a fair value below amortized cost before recovery, the security’s book basis is written down to fair value through earnings. For available-for-sale debt securities that it is more likely than not that we will not sell before recovery, a provision for credit losses is recorded through earnings for the amount of the valuation decline below book basis that is attributable to credit losses. We consider the extent to which fair value is less than amortized cost, credit ratings and other factors related to the security in assessing whether a credit loss exists, and we measure the credit loss by comparing the present value of cash flows expected to be collected to the book basis of the security limited by the amount that the fair value is less than the book basis. The remaining difference between the security’s fair value and its book basis (that is, the decline in fair value not attributable to credit losses) is recognized in other comprehensive income on an after-tax basis. Changes in the allowance for credit losses are recorded as provisions for credit losses. Losses are charged against the allowance when we believe the security is uncollectible or we intend to sell the security. At September 30, 2022, based on our assessment of those securities not guaranteed by the U.S government or its agencies, we recognized an insignificant allowance for credit losses. |
Identifiable intangible assets, net | Identifiable intangible assets, net Certain identifiable intangible assets we acquire such as those related to customer relationships, core deposits, developed technology, trade names and non-compete agreements, are amortized over their estimated useful lives on a straight-line basis 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 related to our identifiable intangible assets is included in “Other” expenses on our Consolidated Statements of Income and Comprehensive Income. See Note 3 for further information on our intangible assets resulting from recent acquisitions. We also hold indefinite-lived identifiable intangible assets, which are not amortized. 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 between annual impairment evaluation dates, if events or circumstances indicate there may be impairment. In the |
Goodwill | Goodwill Goodwill represents the cost of acquired businesses in excess of the fair value of the related net assets acquired. Indefinite-lived intangible assets such as goodwill are not amortized, but rather evaluated for impairment at least annually, or between annual impairment evaluation dates whenever events or circumstances indicate potential impairment exists. Impairment exists when the carrying value of a reporting unit, which is generally at the level of or one level below our business segments, exceeds its respective fair value. In the course of our evaluation of a potential impairment to goodwill, we may elect either a qualitative or a quantitative assessment. Our qualitative assessments consider macroeconomic indicators, such as trends in equity and fixed income markets, GDP, labor markets, interest rates, and housing markets. We also consider regulatory changes, reporting unit specific results, and changes in key personnel and strategy. Changes in these indicators, and our ability to respond to such changes, may trigger the need for impairment testing at a point other than our annual assessment date. We assess these, and other, qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If 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 impairment analysis is not required. However, if we conclude otherwise, we then perform a quantitative impairment analysis. Alternatively, if we elect not to perform a qualitative assessment, we perform a quantitative evaluation. In the event 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. We estimate the fair value of our reporting units using an income approach based on a discounted cash flow model that includes significant assumptions about future operating results and cash flows and, if appropriate, a market approach. If the carrying value of a reporting unit is greater than the estimated fair value, an impairment charge is recognized for the excess. |
Other assets | Other assets Other assets is primarily comprised of investments in company-owned life insurance, property and equipment, net, right-of-use assets (“ROU assets”) associated with leases, prepaid expenses, FHLB stock, Federal Reserve Bank (“FRB”) stock, investments in real estate partnerships held by consolidated VIEs, and certain investments held in our Bank segment. See Note 12 for further information. Other assets also includes client fractional shares for which we act in a principal capacity. See our fractional shares policy above for further information. We maintain investments in company-owned life insurance policies utilized to indirectly fund certain non-qualified deferred compensation plans and other employee benefit plans (see Note 23 for information on the non-qualified deferred compensation plans). These life insurance policies are recorded at cash surrender value as determined by the insurer. Ownership of FHLB and FRB stock is a requirement for all banks seeking membership into and access to the services provided by these banking systems. These investments are carried at cost. Raymond James Affordable Housing Investments, Inc. (“RJAHI”) (formerly Raymond James Tax Credit Funds, Inc.) a wholly-owned subsidiary of RJF, or one of its affiliates, acts as the managing member or general partner in Low-Income Housing Tax Credit (“LIHTC”) funds and other funds of a similar nature, some of which require consolidation. These funds invest in housing project limited partnerships or limited liability companies (“LLCs”) which purchase and develop affordable housing properties generally qualifying for federal and state low-income housing tax credits and/or provide a mechanism for banks and other institutions to meet certain regulatory obligations. The investments in project partnerships of all of the LIHTC fund VIEs which require consolidation are included in “Other assets” on our Consolidated Statements of Financial Condition. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and software amortization. Property and equipment primarily consists of software, buildings, certain leasehold improvements, and furniture. Software includes both purchased software and internally developed software that has been placed in service, including certain software projects where development is in progress. Buildings primarily consists of owned facilities. Leasehold improvements are generally costs associated with lessee-owned interior office space improvements. Equipment primarily consists of communications and technology hardware. Depreciation of assets (other than land) is primarily calculated using the straight-line method over the estimated useful lives of the assets, within ranges outlined in the following table. Asset type Estimated useful life Buildings, building components and land improvements 15 to 40 years Furniture, fixtures and equipment 3 to 5 years Software 2 to 10 years Leasehold improvements (lessee-owned) Lesser of useful life or lease term Costs for significant internally developed software projects are capitalized when the costs relate to development of new applications or modification of existing internal-use software that results in additional functionality. Internally developed software project costs related to preliminary-project and post-project activities are expensed as incurred. |
Leases | Leases We have operating leases for the premises we occupy in many of our U.S. and foreign locations, including our employee-based branch office operations. At inception, we determine if an arrangement to utilize a building or piece of equipment is a lease and, if so, the appropriate lease classification. Substantially all of our leases are operating leases. If the arrangement is determined to be a lease, we recognize a ROU asset in “Other assets” and a corresponding lease liability in “Other payables” on our Consolidated Statements of Financial Condition. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. We elected the practical expedient, where leases with an initial or acquired term of 12 months or less are not recorded as an ROU asset or lease liability. Our lease terms include any noncancelable periods and may reflect periods covered by options to extend or terminate when it is reasonably certain that we will exercise those options. |
Bank deposits | Bank depositsBank deposits include money market accounts, savings accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit held at Raymond James Bank and TriState Capital Bank. Raymond James Bank deposits are substantially comprised of deposits that are swept from the investment accounts of PCG clients through the RJBDP. TriState Capital Bank’s deposits are generally comprised of money market and savings accounts and interest-bearing checking accounts. Deposits are stated at the principal amount outstanding. Interest on deposits is accrued and charged to interest expense daily and is paid or credited in accordance with the terms of the respective accounts. The interest rates on the vast majority of our deposits are determined based on market rates and, in certain cases, may be linked to an index, such as the effective federal funds rate. |
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 loss is probable and 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, the minimum amount in the range of loss is accrued. No liability is recognized for those matters which, in management’s judgment, the determination of a reasonable estimate of loss is not possible, or for which a loss is not determined to be probable. |
Share-based compensation | Share-based compensationWe account for the compensation cost related to share-based payment awards made to employees, directors, and independent contractors based on the estimated fair values of the awards on the date of grant. The compensation cost of our share-based awards, net of estimated forfeitures, is amortized over the requisite service period of the awards. Share-based compensation amortization is included in “Compensation, commissions and benefits” expense on our Consolidated Statements of Income and Comprehensive Income. |
Deferred compensation plans | Deferred compensation plansWe 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 the Voluntary Deferred Compensation Plan (“VDCP”), Long-Term Incentive Plan (“LTIP”), and certain other plans, 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 12 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, 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. |
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 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. Gains and losses relating to transactions in currencies other than the respective subsidiaries’ functional currency are reported in “Other” revenues in our Consolidated Statements of Income and Comprehensive Income. |
Income taxes | Income taxes The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year. We utilize the asset and liability method to provide for 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. Our net deferred tax assets and net deferred tax liabilities presented on the financial statements are based upon the jurisdictional footprint of the firm. We consider our major jurisdictions for disclosure purposes to be federal, state, Canada, and the United Kingdom (“U.K.”). Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns, including the repatriation of undistributed earnings of foreign subsidiaries. Variations in the actual outcome of these future tax consequences could materially impact our financial position, results of operations, or liquidity. See Note 18 for further information on our income taxes. We hold investments in certain LIHTC and other funds which deliver tax benefits. For those investments in LIHTC funds that qualify for application of the proportional amortization method, we apply such method. Under the proportional amortization method, the LIHTC investment is amortized in proportion to the allocation of tax credits received in each period, and the investment amortization and the tax credits are presented on a net basis within “Provision for income taxes” in our Consolidated Statements of Income and Comprehensive Income. Where our LIHTC investments do not qualify for such treatment, we account for such LIHTC and other fund investments under the equity method, with any losses recorded in “Other” expenses. The federal tax credits that result from these investments reduce our provision for income taxes in the year the investment’s activity is included in our taxable income. As a result, inclusion of these credits may not align to the period in which we recognize the losses on the related investments in our financial statements. |
Earnings per share ("EPS") | Earnings per share (“EPS”) Basic EPS is calculated by dividing earnings attributable to common shareholders by the weighted-average common shares outstanding. Earnings attributable to common shareholders represents net income reduced by preferred stock dividends as well as 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, restricted stock awards (“RSAs”), and certain restricted stock units (“RSUs”) 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 LLCs. 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 primarily in the following VIEs: certain private equity investments, a trust fund established for employee retention purposes (“Restricted Stock Trust Fund”) and certain LIHTC funds or funds of a similar nature. See Note 10 for further information on our VIEs. 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 obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. LIHTC funds RJAHI 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, or hold, low-income housing properties qualifying for tax credits and/or provide a mechanism for banks and other institutions to meet their Community Reinvestment Act obligations throughout the U.S. Our determination of the primary beneficiary of each fund in which RJAHI 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 RJAHI’s variable interest and other involvement it has with the 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 fund’s purpose and design, including the risks that the fund was designed to create and pass through to its variable interest holders. In the design of most tax credit fund VIEs, the investor members invest solely for tax attributes associated with the portfolio of low-income housing properties held by the fund. However, certain fund VIEs which invest and hold project partnerships that have already delivered most of the tax credits to their investors hold the projects to monetize anticipated future tax benefits for which the project may ultimately qualify. In both instances, RJAHI, as the managing member or general partner of the fund, is responsible for overseeing the fund’s operations. RJAHI sponsors two general types of tax credit funds designed to deliver tax benefits to the investors. Generally, neither type meets the VIE consolidation criteria. These types of funds include single investor funds and multi-investor funds. RJAHI does not typically 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). RJAHI earns fees from the fund for its services in organizing the fund, identifying and acquiring the project partnership investments and ongoing asset management, and receives a share of any residuals arising from sale of project partnerships upon the termination of the fund. In single investor funds that deliver tax benefits, RJAHI 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 RJAHI, 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 cases, these funds are not consolidated. In multi-investor funds that deliver tax benefits, RJAHI 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, RJAHI is deemed to have the power over such activities. RJAHI 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, in nearly all cases, these funds are not consolidated. RJAHI may also sponsor other funds designed to hold projects to monetize future tax benefits for which the projects may qualify in either single investor or multi-investor form. In single investor form, the limited partner has significant participating rights over the activities that most significantly impact the economics of the fund, and therefore RJAHI is not the primary beneficiary of such funds and such funds are not consolidated. In multi-investor form, we have concluded that we meet the power criteria since participating rights are not held by any one single investor and thus RJAHI is deemed to have the power over such activities; however, we have concluded that we do not meet the benefits criteria given we do not expect the benefits to be potentially significant and therefore we are not the primary beneficiary and we do not consolidate the funds. Direct investments in LIHTC project partnerships Raymond James Bank and TriState Capital Bank are the investor members of LIHTC funds that deliver tax benefits which we have determined to be VIEs, and in which RJAHI, or its subsidiary, is the managing member. For Raymond James Bank, we have determined that it is the primary beneficiary of this VIE and therefore, we consolidate the fund. TriState Capital Bank also holds investments in other LIHTC funds for which we have determined that we are not the primary beneficiary. 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 values of the funds’ project partnership investments are included in “Other assets” on our Consolidated Statements of Financial Condition. Any losses on such equity method investments are included in “Other” expenses on our Consolidated Statements of Income and Comprehensive Income. See “Income taxes” section of this Note 2 for a discussion of our accounting for the tax benefits related to such investments. Private Equity Interests As part of our private equity investments, at one time we held interests in a number of limited partnerships (our “Private Equity Interests”). We 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 were the primary beneficiary of the Private Equity Interests VIEs, we analyzed the power and benefits criteria. As of September 30, 2021, we had concluded that we were the primary beneficiary in certain of these entities as we met the power and benefits criteria. In such instances, we consolidated the Private Equity Interests VIE. However, as of September 30, 2022 we had sold or restructured such investments such that we were no longer deemed the primary beneficiary and therefore did not consolidated these entities. In our remaining Private Equity Interests, 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. Restricted Stock Trust Fund We utilize a trust in connection with certain of our 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. |
Acquisitions | Acquisitions Our financial statements include the operations of acquired businesses starting from the completion of the acquisition. Acquisitions are generally recorded as business combinations, whereby the assets acquired and liabilities assumed are recorded on the date of acquisition at their respective estimated fair values, including any identifiable intangible assets. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Significant judgment is required in estimating the fair value of certain acquired assets and liabilities. The fair value estimates are based on available historical information and on future expectations and assumptions deemed reasonable by management, but are inherently uncertain as they pertain to forward-looking views of our businesses, client behavior, and market conditions. We consider the income, market and cost approaches and place reliance on the approach or approaches deemed most appropriate to estimate the fair value of intangible assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability) and the discount rate applied to the cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule Of Estimate Useful Lives Of Property, Plant and Equipment | Depreciation of assets (other than land) is primarily calculated using the straight-line method over the estimated useful lives of the assets, within ranges outlined in the following table. Asset type Estimated useful life Buildings, building components and land improvements 15 to 40 years Furniture, fixtures and equipment 3 to 5 years Software 2 to 10 years Leasehold improvements (lessee-owned) Lesser of useful life or lease term |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Purchase Price, Fair Value Estimates of Assets Acquired and Liabilities Assumed, and Resulting Goodwill | The following table summarizes the purchase consideration, fair value estimates of the assets acquired and liabilities assumed, and resulting goodwill as of the June 1, 2022 acquisition date. TriState Capital $ in millions, except share and per share amounts June 1, 2022 Fair value of consideration transferred: Fair value of common stock issued: Shares of RJF common stock issued 7,861,189 RJF share price as of June 1, 2022 $ 97.74 Fair value of RJF common stock issued for TriState Capital common stock $ 768 Other common stock consideration 10 Total fair value of common stock issued 778 Cash consideration (1) 359 Effective settlement of the Note 123 Preferred stock issued 120 RSAs issued 28 Total purchase price $ 1,408 Fair value of assets acquired: Cash and cash equivalents $ 457 Available-for-sale securities 1,524 Derivative assets 51 Bank loans, net 11,549 Deferred income taxes, net 26 Identifiable intangible assets 197 Other assets 226 All other assets acquired 59 Total assets acquired $ 14,089 Fair value of liabilities assumed: Bank deposits $ 12,593 Derivative liabilities 125 Other borrowings 375 All other liabilities assumed 117 Total liabilities assumed $ 13,210 Fair value of net identifiable assets acquired $ 879 Goodwill (2) $ 529 (1) Cash consideration includes $6 per TriState Capital common share outstanding (for a total of $189 million) and $30 per TriState Capital Series C Convertible Preferred Stock outstanding (for a total of $154 million), as well as other cash amounts paid to settle TriState Capital warrants and options outstanding as of the closing and cash paid in lieu of fractional shares. We utilized our cash on hand to fund the cash component of the purchase consideration. (2) The goodwill associated with this acquisition, which has been allocated to our Bank segment and primarily represents synergies from combining TriState Capital with our existing businesses, is not deductible for tax purposes. $ in millions Charles Stanley (1) and SumRidge Partners Aggregate purchase consideration $ 686 Fair value of assets acquired: Cash and cash equivalents $ 156 Assets segregated for regulatory purposes 1,890 Trading assets 631 Brokerage client receivables 91 Other receivables 440 Identifiable intangible assets 137 All other assets acquired 38 Total assets acquired $ 3,383 Fair value of liabilities assumed: Trading liabilities $ 552 Brokerage client payables 2,064 All other liabilities assumed 347 Total liabilities assumed $ 2,963 Fair value of net identifiable assets acquired $ 420 Goodwill $ 266 Goodwill by segment: PCG (2) $ 164 Capital Markets (3) 102 Total goodwill $ 266 (1) The fair values of assets acquired and liabilities assumed associated with the Charles Stanley acquisition were denominated in British pounds sterling (“GBP”) and converted to U.S. dollars using the spot rate of 1.3554 as of January 21, 2022. (2) The goodwill associated with the Charles Stanley acquisition, which has been allocated to our PCG segment, primarily represents synergies from combining Charles Stanley with our existing businesses and is not deductible for tax purposes. |
Difference Between Par Value and Purchase Price of PCD Loans at Acquisition | The following table reconciles the difference between the unpaid principal balance and purchase price of PCD loans at acquisition. $ in millions June 1, 2022 Unpaid principal balance of PCD loans $ 337 Allowance for credit losses on PCD loans (3) Non-credit discount on PCD loans (10) Purchase price of PCD loans $ 324 |
Schedule of Finite-Lived Intangible Assets by Major Class | The following table summarizes the fair value and weighted average estimated useful life of identifiable intangibles assets acquired as of the respective acquisition dates. TriState Capital Charles Stanley and SumRidge Partners $ in millions Estimated fair value Weighted average estimated Estimated fair value Weighted average estimated Fair value of identifiable intangible assets acquired: Core deposit intangible $ 89 10 years $ — — Customer relationships 54 17 years 80 12 years Trade names 33 20 years 17 9 years Developed technology 16 10 years 40 8 years Non-amortizing customer relationships 5 N/A — N/A Total identifiable intangibles assets acquired $ 197 $ 137 The following table summarizes our identifiable intangible assets by type. September 30, 2022 2021 $ in millions Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 361 $ (103) $ 238 $ (79) Core deposit intangible 89 (3) — — Developed technology 58 (4) 3 (2) Non-amortizing customer relationships 57 — 52 — Trade names 57 (5) 12 (5) All other 6 (4) 7 (4) Total $ 628 $ (119) $ 312 $ (90) |
Pro Forma Financial Information | The unaudited pro forma financial information is presented for informational purposes only, and is not necessarily indicative of future operations or results had these acquisitions been completed as of October 1, 2020. Year ended September 30, $ in millions 2022 2021 Net revenues $ 11,364 $ 10,395 Pre-tax income $ 2,195 $ 1,872 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Consolidated Statements of Financial Condition. See Note 6 for additional information. $ in millions Level 1 Level 2 Level 3 Netting Balance as of September 30, 2022 Assets at fair value on a recurring basis: Trading assets: Municipal and provincial obligations $ — $ 269 $ — $ — $ 269 Corporate obligations 16 579 — — 595 Government and agency obligations 86 85 — — 171 Agency MBS, CMOs, and asset-backed securities (“ABS”) — 123 — — 123 Non-agency CMOs and ABS — 61 — — 61 Total debt securities 102 1,117 — — 1,219 Equity securities 20 — — — 20 Brokered certificates of deposit — 30 — — 30 Other — — 1 — 1 Total trading assets 122 1,147 1 — 1,270 Available-for-sale securities (1) 986 8,899 — — 9,885 Derivative assets: Interest rate - matched book — 52 — — 52 Interest rate - other 42 432 — (348) 126 Foreign exchange — 10 — — 10 Total derivative assets 42 494 — (348) 188 Other investments - private equity - not measured at NAV — — 5 — 5 All other investments: Government and agency obligations (2) 79 — — — 79 Other 92 2 24 — 118 Total all other investments 171 2 24 — 197 Other assets - fractional shares 78 — — — 78 Subtotal 1,399 10,542 30 (348) 11,623 Other investments - private equity - measured at NAV 90 Total assets at fair value on a recurring basis $ 1,399 $ 10,542 $ 30 $ (348) $ 11,713 Liabilities at fair value on a recurring basis: Trading liabilities: Municipal and provincial obligations $ 5 $ — $ — $ — $ 5 Corporate obligations — 555 — — 555 Government and agency obligations 249 — — — 249 Total debt securities 254 555 — — 809 Equity securities 27 — — — 27 Total trading liabilities 281 555 — — 836 Derivative liabilities: Interest rate - matched book — 52 — — 52 Interest rate - other 40 495 — (65) 470 Foreign exchange — 5 — — 5 Other — — 3 — 3 Total derivative liabilities 40 552 3 (65) 530 Other payables - fractional shares 78 — — — 78 Total liabilities at fair value on a recurring basis $ 399 $ 1,107 $ 3 $ (65) $ 1,444 $ in millions Level 1 Level 2 Level 3 Netting Balance as of September 30, 2021 Assets at fair value on a recurring basis: Assets segregated for regulatory purposes (3) $ 2,100 $ — $ — $ — $ 2,100 Trading assets: Municipal and provincial obligations — 155 — — 155 Corporate obligations 16 63 — — 79 Government and agency obligations 15 94 — — 109 Agency MBS, CMOs, and ABS — 211 — — 211 Non-agency CMOs and ABS — 14 — — 14 Total debt securities 31 537 — — 568 Equity securities 8 4 — — 12 Brokered certificates of deposit — 16 — — 16 Other — — 14 — 14 Total trading assets 39 557 14 — 610 Available-for-sale securities (1) 15 8,300 — — 8,315 Derivative assets: Interest rate - matched book — 193 — — 193 Interest rate - other 16 128 — (87) 57 Foreign exchange — 5 — — 5 Total derivative assets 16 326 — (87) 255 Other investments - private equity - not measured at NAV — — 75 — 75 All other investments: Government and agency obligations (2) 86 — — — 86 Other 77 2 23 — 102 Total all other investments 163 2 23 — 188 Subtotal 2,333 9,185 112 (87) 11,543 Other investments - private equity - measured at NAV 94 Total assets at fair value on a recurring basis $ 2,333 $ 9,185 $ 112 $ (87) $ 11,637 Liabilities at fair value on a recurring basis: Trading liabilities: Municipal and provincial obligations $ 2 $ — $ — $ — $ 2 Corporate obligations — 6 — — 6 Government and agency obligations 137 — — — 137 Total debt securities 139 6 — — 145 Equity securities 28 3 — — 31 Total trading liabilities 167 9 — — 176 Derivative liabilities: Interest rate - matched book — 193 — — 193 Interest rate - other 16 106 — (88) 34 Other — — 1 — 1 Total derivative liabilities 16 299 1 (88) 228 Total liabilities at fair value on a recurring basis $ 183 $ 308 $ 1 $ (88) $ 404 (1) Our available-for-sale securities primarily consist of agency MBS and agency CMOs. See Note 5 for further information. (2) These assets are comprised of U.S. Treasuries primarily purchased to meet certain deposit requirements with clearing organizations. (3) These assets consisted of U.S. Treasuries with maturities greater than 3 months as of our date of purchase. These assets did not include U.S. Treasuries with maturities of less than 3 months as of our date of purchase with a fair value of $3.55 billion at September 30, 2021 which were considered cash equivalents segregated for regulatory purposes. These assets are classified as Level 1. Such cash equivalents were $500 million at September 30, 2022. |
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 following tables, gains/(losses) on trading and derivative instruments are reported in “ Principal transactions Other Year ended September 30, 2022 Level 3 instruments at fair value Financial assets Financial Trading assets Other investments Derivative liabilities $ in millions Other Private equity All other Other Fair value beginning of year $ 14 $ 75 $ 23 $ (1) Total gains/(losses) included in earnings 1 12 (3) (2) Purchases and contributions 108 — 7 — Sales, distributions, and deconsolidations (122) (70) (3) — Transfers: Into Level 3 — — — — Out of Level 3 — (12) — — Fair value end of year $ 1 $ 5 $ 24 $ (3) Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year $ — $ 1 $ 1 $ (2) Year ended September 30, 2021 Level 3 instruments at fair value Financial assets Financial Trading assets Derivative assets Other investments Derivative liabilities $ in millions Other Other Private equity All other Other Fair value beginning of year $ 12 $ — $ 37 $ 22 $ (5) Total gains/(losses) included in earnings (1) 1 37 1 5 Purchases and contributions 49 — 1 — — Sales, distributions, and deconsolidations (46) (1) — — (1) Transfers: Into Level 3 — — — — — Out of Level 3 — — — — — Fair value end of year $ 14 $ — $ 75 $ 23 $ (1) Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year $ — $ — $ 37 $ 1 $ (1) |
Net Asset Value and Unfunded Commitments | The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio. $ in millions Recorded value Unfunded commitment September 30, 2022 Private equity investments measured at NAV $ 90 $ 39 Private equity investments not measured at NAV 5 Total private equity investments $ 95 September 30, 2021 Private equity investments measured at NAV $ 94 $ 24 Private equity investments not measured at NAV 75 Total private equity investments (1) $ 169 (1) Of the total private equity investments at September 30, 2021, the portion we owned was $120 million, while the portion that we did not own was $49 million and was included as a component of noncontrolling interests on our Consolidated Statements of Financial Condition. |
Fair Value Measurements, Nonrecurring | The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets 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. $ in millions Level 2 Level 3 Total fair value Valuation technique(s) Unobservable input Range September 30, 2022 Bank loans: Residential mortgage loans $ 2 $ 10 $ 12 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. (10.4 yrs.) Corporate loans $ — $ 57 $ 57 Collateral or discounted cash flow (1) Recovery rate 24% - 66% (47%) Loans held for sale $ 3 $ — $ 3 N/A N/A N/A September 30, 2021 Bank loans: Residential mortgage loans $ 3 $ 11 $ 14 Collateral or discounted cash flow (1) Prepayment rate 7 yrs. - 12 yrs. (10.5 yrs.) Corporate loans $ — $ 49 $ 49 Collateral or discounted cash flow (1) Recovery rate 74 % Loans held for sale $ 29 $ — $ 29 N/A N/A N/A (1) The valuation techniques used to estimate the fair values are based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent. Unobservable inputs used in the collateral valuation technique are not meaningful and unobservable inputs used in the discounted cash flow valuation technique are presented in the table. |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Recorded at Fair Value | The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value on the Consolidated Statements of Financial Condition at September 30, 2022 and 2021. This table excludes financial instruments that are carried at amounts which approximate fair value. $ in millions Level 2 Level 3 Total estimated Carrying amount September 30, 2022 Financial assets: Bank loans, net $ 134 $ 42,336 $ 42,470 $ 43,167 Financial liabilities: Bank deposits - certificates of deposit $ 400 $ 579 $ 979 $ 999 Other borrowings - subordinated notes payable $ 95 $ — $ 95 $ 100 Senior notes payable $ 1,706 $ — $ 1,706 $ 2,038 September 30, 2021 Financial assets: Bank loans, net $ 116 $ 24,839 $ 24,955 $ 24,902 Financial liabilities: Bank deposits - certificates of deposit $ — $ 898 $ 898 $ 878 Senior notes payable $ 2,459 $ — $ 2,459 $ 2,037 |
AVAILABLE-FOR-SALE SECURITIES (
AVAILABLE-FOR-SALE SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Estimated Fair Values of Available For Sale Securities | The following table details the amortized costs and fair values of our available-for-sale securities. $ in millions Cost basis Gross Gross Fair value September 30, 2022 Agency residential MBS $ 5,662 $ — $ (668) $ 4,994 Agency commercial MBS 1,518 — (208) 1,310 Agency CMOs 1,637 — (233) 1,404 Other agency obligations 613 — (31) 582 Non-agency residential MBS 492 — (41) 451 U.S. Treasuries 1,014 — (28) 986 Corporate bonds 146 — (5) 141 Other 18 — (1) 17 Total available-for-sale securities $ 11,100 $ — $ (1,215) $ 9,885 September 30, 2021 Agency residential MBS $ 5,168 $ 46 $ (25) $ 5,189 Agency commercial MBS 1,285 7 (28) 1,264 Agency CMOs 1,854 9 (16) 1,847 U.S Treasuries 15 — — 15 Total available-for-sale securities $ 8,322 $ 62 $ (69) $ 8,315 |
Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available For Sales Securities | The following table details the contractual maturities, amortized costs, carrying values and current yields for our available-for-sale securities. Weighted-average yields are calculated on a taxable-equivalent basis based on estimated annual income divided by the average amortized cost of these securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. As a result, as of September 30, 2022, the weighted-average life of our available-for-sale securities portfolio was approximately 4.65 years. September 30, 2022 $ in millions Within one year After one but After five but After ten years Total Agency residential MBS Amortized cost $ — $ 147 $ 2,516 $ 2,999 $ 5,662 Carrying value $ — $ 140 $ 2,242 $ 2,612 $ 4,994 Weighted-average yield — % 2.45 % 1.25 % 1.76 % 1.55 % Agency commercial MBS Amortized cost $ 15 $ 714 $ 716 $ 73 $ 1,518 Carrying value $ 15 $ 644 $ 588 $ 63 $ 1,310 Weighted-average yield 1.91 % 1.70 % 1.22 % 1.69 % 1.47 % Agency CMOs Amortized cost $ — $ 12 $ 30 $ 1,595 $ 1,637 Carrying value $ — $ 12 $ 27 $ 1,365 $ 1,404 Weighted-average yield — % 2.08 % 1.54 % 1.48 % 1.49 % Other agency obligations Amortized cost $ — $ 487 $ 114 $ 12 $ 613 Carrying value $ — $ 464 $ 107 $ 11 $ 582 Weighted-average yield — % 2.16 % 3.55 % 2.99 % 2.43 % Non-agency residential MBS Amortized cost $ — $ — $ — $ 492 $ 492 Carrying value $ — $ — $ — $ 451 $ 451 Weighted-average yield — % — % — % 4.13 % 4.13 % U.S. Treasuries Amortized cost $ 6 $ 1,006 $ 2 $ — $ 1,014 Carrying value $ 6 $ 978 $ 2 $ — $ 986 Weighted-average yield 1.91 % 2.64 % 1.30 % — % 2.63 % Corporate bonds Amortized cost $ — $ 83 $ 63 $ — $ 146 Carrying value $ — $ 81 $ 60 $ — $ 141 Weighted-average yield — % 4.12 % 4.91 % — % 4.46 % Other Amortized cost $ — $ 5 $ — $ 13 $ 18 Carrying value $ — $ 5 $ — $ 12 $ 17 Weighted-average yield — % 4.19 % — % 5.33 % 4.95 % Total available-for-sale securities Amortized cost $ 21 $ 2,454 $ 3,441 $ 5,184 $ 11,100 Carrying value $ 21 $ 2,324 $ 3,026 $ 4,514 $ 9,885 Weighted-average yield 1.91 % 2.31 % 1.39 % 1.91 % 1.84 % |
Available For Sale Securities in a Continuous Unrealized Loss Position | The following table details the gross unrealized losses and fair values 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 millions Estimated Unrealized Estimated Unrealized Estimated Unrealized September 30, 2022 Agency residential MBS $ 2,165 $ (226) $ 2,829 $ (442) $ 4,994 $ (668) Agency commercial MBS 494 (41) 816 (167) 1,310 (208) Agency CMOs 337 (32) 1,067 (201) 1,404 (233) Other agency obligations 582 (31) — — 582 (31) Non-agency residential MBS 451 (41) — — 451 (41) U.S. Treasuries 982 (28) 4 — 986 (28) Corporate bonds 128 (5) — — 128 (5) Other 17 (1) — — 17 (1) Total $ 5,156 $ (405) $ 4,716 $ (810) $ 9,872 $ (1,215) September 30, 2021 Agency residential MBS $ 3,155 $ (25) $ 18 $ — $ 3,173 $ (25) Agency commercial MBS 645 (13) 353 (15) 998 (28) Agency CMOs 918 (12) 231 (4) 1,149 (16) U.S. Treasuries 3 — — — 3 — Total $ 4,721 $ (50) $ 602 $ (19) $ 5,323 $ (69) |
DERIVATIVE ASSETS AND DERIVAT_2
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table presents the gross fair values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on 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, 2022 September 30, 2021 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 52 $ 52 $ 1,340 $ 193 $ 193 $ 1,736 Interest rate - other (1) 462 535 14,647 144 122 15,087 Foreign exchange 4 5 958 3 — 826 Other — 3 531 — 1 551 Subtotal 518 595 17,476 340 316 18,200 Derivatives designated as hedging instruments Interest rate - other 12 — 1,050 — — 850 Foreign exchange 6 — 1,092 2 — 939 Subtotal 18 — 2,142 2 — 1,789 Total gross fair value/notional amount 536 595 $ 19,618 342 316 $ 19,989 Offset on the Consolidated Statements of Financial Condition Counterparty netting (35) (35) (46) (46) Cash collateral netting (313) (30) (41) (42) Total amounts offset (348) (65) (87) (88) Net amounts presented on the Consolidated Statements of Financial Condition 188 530 255 228 Gross amounts not offset on the Consolidated Statements of Financial Condition Financial instruments (2) (60) (52) (205) (193) Total $ 128 $ 478 $ 50 $ 35 (1) Relates to interest rate derivatives entered into as part of our fixed income business operations, including TBA security contracts that are accounted for as derivatives, as well as our banking operations, including those of TriState Capital Bank which was acquired on June 1, 2022. (2) 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 values and notional amounts of derivatives by product type, the amounts of counterparty and cash collateral netting on 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, 2022 September 30, 2021 $ in millions Derivative assets Derivative liabilities Notional amount Derivative assets Derivative liabilities Notional amount Derivatives not designated as hedging instruments Interest rate - matched book $ 52 $ 52 $ 1,340 $ 193 $ 193 $ 1,736 Interest rate - other (1) 462 535 14,647 144 122 15,087 Foreign exchange 4 5 958 3 — 826 Other — 3 531 — 1 551 Subtotal 518 595 17,476 340 316 18,200 Derivatives designated as hedging instruments Interest rate - other 12 — 1,050 — — 850 Foreign exchange 6 — 1,092 2 — 939 Subtotal 18 — 2,142 2 — 1,789 Total gross fair value/notional amount 536 595 $ 19,618 342 316 $ 19,989 Offset on the Consolidated Statements of Financial Condition Counterparty netting (35) (35) (46) (46) Cash collateral netting (313) (30) (41) (42) Total amounts offset (348) (65) (87) (88) Net amounts presented on the Consolidated Statements of Financial Condition 188 530 255 228 Gross amounts not offset on the Consolidated Statements of Financial Condition Financial instruments (2) (60) (52) (205) (193) Total $ 128 $ 478 $ 50 $ 35 (1) Relates to interest rate derivatives entered into as part of our fixed income business operations, including TBA security contracts that are accounted for as derivatives, as well as our banking operations, including those of TriState Capital Bank which was acquired on June 1, 2022. (2) 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 Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table details the gains/(losses) included in AOCI, net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the year. See Note 20 for additional information. Year ended September 30, $ in millions 2022 2021 2020 Interest rate (cash flow hedges) $ 70 $ 26 $ (34) Foreign exchange (net investment hedges) 72 (34) 5 Total gains/(losses) included in AOCI, net of taxes $ 142 $ (8) $ (29) |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table details the gains/(losses) included in AOCI, net of income taxes, on derivatives designated as hedging instruments. These gains/(losses) included any amounts reclassified from AOCI to net income during the year. See Note 20 for additional information. Year ended September 30, $ in millions 2022 2021 2020 Interest rate (cash flow hedges) $ 70 $ 26 $ (34) Foreign exchange (net investment hedges) 72 (34) 5 Total gains/(losses) included in AOCI, net of taxes $ 142 $ (8) $ (29) |
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. These amounts do not include any offsetting gains/(losses) on the related hedged item. Year ended September 30, $ in millions Location of gain/(loss) 2022 2021 2020 Interest rate Principal transactions/other revenues $ 22 $ 13 $ 7 Foreign exchange Other revenues $ 102 $ (21) $ — Other Principal transactions $ (1) $ 4 $ (5) |
COLLATERALIZED AGREEMENTS AND_2
COLLATERALIZED AGREEMENTS AND FINANCINGS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Offsetting [Abstract] | |
Schedule of Offsetting Transactions, Assets | For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned because the conditions for netting as specified by GAAP are not met. Although not offset on the Consolidated Statements of Financial Condition, these transactions are included in the following table. Collateralized agreements Collateralized financings $ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total September 30, 2022 Gross amounts of recognized assets/liabilities $ 367 $ 337 $ 704 $ 294 $ 172 $ 466 Gross amounts offset on the Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Consolidated Statements of Financial Condition 367 337 704 294 172 466 Gross amounts not offset on the Consolidated Statements of Financial Condition (367) (327) (694) (294) (162) (456) Net amounts $ — $ 10 $ 10 $ — $ 10 $ 10 September 30, 2021 Gross amounts of recognized assets/liabilities $ 279 $ 201 $ 480 $ 205 $ 72 $ 277 Gross amounts offset on the Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Consolidated Statements of Financial Condition 279 201 480 205 72 277 Gross amounts not offset on the Consolidated Statements of Financial Condition (279) (195) (474) (205) (68) (273) Net amounts $ — $ 6 $ 6 $ — $ 4 $ 4 |
Schedule of Offsetting Transactions, Liabilities | For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned because the conditions for netting as specified by GAAP are not met. Although not offset on the Consolidated Statements of Financial Condition, these transactions are included in the following table. Collateralized agreements Collateralized financings $ in millions Reverse repurchase agreements Securities borrowed Total Repurchase agreements Securities loaned Total September 30, 2022 Gross amounts of recognized assets/liabilities $ 367 $ 337 $ 704 $ 294 $ 172 $ 466 Gross amounts offset on the Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Consolidated Statements of Financial Condition 367 337 704 294 172 466 Gross amounts not offset on the Consolidated Statements of Financial Condition (367) (327) (694) (294) (162) (456) Net amounts $ — $ 10 $ 10 $ — $ 10 $ 10 September 30, 2021 Gross amounts of recognized assets/liabilities $ 279 $ 201 $ 480 $ 205 $ 72 $ 277 Gross amounts offset on the Consolidated Statements of Financial Condition — — — — — — Net amounts included in the Consolidated Statements of Financial Condition 279 201 480 205 72 277 Gross amounts not offset on the Consolidated Statements of Financial Condition (279) (195) (474) (205) (68) (273) Net amounts $ — $ 6 $ 6 $ — $ 4 $ 4 |
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 millions 2022 2021 Collateral we received that was available to be delivered or repledged $ 3,812 $ 3,429 Collateral that we delivered or repledged $ 947 $ 830 |
Encumbered assets | The following table presents information about our assets that have been pledged for one of the purposes previously described. September 30, $ in millions 2022 2021 Had the right to deliver or repledge $ 1,276 $ 368 Did not have the right to deliver or repledge $ 63 $ 65 Bank loans, net pledged at the FHLB and the Federal Reserve Bank of Atlanta $ 8,800 $ 5,716 |
Remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings | The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings. $ in millions Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total September 30, 2022 Repurchase agreements: Government and agency obligations $ 183 $ — $ — $ — $ 183 Agency MBS and agency CMOs 111 — — — 111 Total repurchase agreements 294 — — — 294 Securities loaned: Equity securities 172 — — — 172 Total collateralized financings $ 466 $ — $ — $ — $ 466 September 30, 2021 Repurchase agreements: Government and agency obligations $ 122 $ — $ — $ — $ 122 Agency MBS and agency CMOs 83 — — — 83 Total repurchase agreements 205 — — — 205 Securities loaned: Equity securities 72 — — — 72 Total collateralized financings $ 277 $ — $ — $ — $ 277 |
BANK LOANS, NET (Tables)
BANK LOANS, NET (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Held for Sale and Held for Investment Loan Portfolios | The following table presents the balances for held for investment loans by portfolio segment and held for sale loans. September 30, $ in millions 2022 2021 SBL $ 15,297 $ 6,106 C&I loans 11,173 8,440 CRE loans 6,549 2,872 REIT loans 1,592 1,112 Residential mortgage loans 7,386 5,318 Tax-exempt loans 1,501 1,321 Total loans held for investment 43,498 25,169 Held for sale loans 137 145 Total loans held for sale and investment 43,635 25,314 Allowance for credit losses (396) (320) Bank loans, net (1) $ 43,239 $ 24,994 ACL as a % of total loans held for investment 0.91 % 1.27 % Accrued interest receivable on bank loans (included in “Other receivables, net”) $ 137 $ 48 (1) Bank loans, net as of September 30, 2022 are presented net of $112 million of net unamortized discount, unearned income, and deferred loan fees and costs. The net unamortized discount primarily arose from the acquisition date fair value purchased discount on bank loans acquired in the TriState Capital acquisition. See Note 3 for further information. Bank loans, net as of September 30, 2021 are presented net of $1 million of unearned income and deferred loan fees and costs. |
Loan Purchases and Sales | The following table presents purchases and sales of loans held for investment by portfolio segment. Purchases do not include loans obtained from the acquisition of TriState Capital Bank. $ in millions C&I loans CRE loans Residential mortgage loans Total Year ended September 30, 2022 Purchases $ 1,288 $ — $ 1,207 $ 2,495 Sales $ 147 $ — $ 1 $ 148 Year ended September 30, 2021 Purchases $ 1,528 $ — $ 524 $ 2,052 Sales $ 297 $ — $ — $ 297 Year ended September 30, 2020 Purchases $ 589 $ 5 $ 402 $ 996 Sales $ 598 $ 27 $ 2 $ 627 |
Analysis of the Payment Status of Loans Held for Investment | The following table presents information on delinquency status of our loans held for investment. $ in millions 30-89 90 days Total past due and accruing Nonaccrual with allowance Nonaccrual with no allowance Current and accruing Total loans held for September 30, 2022 SBL $ — $ — $ — $ — $ — $ 15,297 $ 15,297 C&I loans — — — 32 — 11,141 11,173 CRE loans — — — 12 16 6,521 6,549 REIT loans — — — — — 1,592 1,592 Residential mortgage loans 4 — 4 — 14 7,368 7,386 Tax-exempt loans — — — — — 1,501 1,501 Total loans held for investment $ 4 $ — $ 4 $ 44 $ 30 $ 43,420 $ 43,498 September 30, 2021 SBL $ — $ — $ — $ — $ — $ 6,106 $ 6,106 C&I loans — — — 39 — 8,401 8,440 CRE loans — — — — 20 2,852 2,872 REIT loans — — — — — 1,112 1,112 Residential mortgage loans 2 — 2 2 13 5,301 5,318 Tax-exempt loans — — — — — 1,321 1,321 Total loans held for investment $ 2 $ — $ 2 $ 41 $ 33 $ 25,093 $ 25,169 |
Credit Quality of Held for Investment Loan Portfolio | The following tables present our held for investment bank loan portfolio by credit quality indicator. September 30, 2022 Loans by origination fiscal year $ in millions 2022 2021 2020 2019 2018 Prior Revolving loans Total SBL Risk rating: Pass $ 14 $ 27 $ 72 $ 44 $ 36 $ 41 $ 15,063 $ 15,297 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total SBL $ 14 $ 27 $ 72 $ 44 $ 36 $ 41 $ 15,063 $ 15,297 C&I loans Risk rating: Pass $ 1,011 $ 1,448 $ 1,301 $ 1,124 $ 1,389 $ 2,200 $ 2,380 $ 10,853 Special mention 10 28 3 37 — 82 6 166 Substandard 1 — 60 28 40 6 14 149 Doubtful — — — — 5 — — 5 Total C&I loans $ 1,022 $ 1,476 $ 1,364 $ 1,189 $ 1,434 $ 2,288 $ 2,400 $ 11,173 CRE loans Risk rating: Pass $ 1,916 $ 1,345 $ 892 $ 707 $ 816 $ 551 $ 176 $ 6,403 Special mention — 1 — — 36 2 — 39 Substandard — — 14 17 46 30 — 107 Doubtful — — — — — — — — Total CRE loans $ 1,916 $ 1,346 $ 906 $ 724 $ 898 $ 583 $ 176 $ 6,549 REIT loans Risk rating: Pass $ 169 $ 230 $ 96 $ 53 $ 40 $ 222 $ 782 $ 1,592 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total REIT loans $ 169 $ 230 $ 96 $ 53 $ 40 $ 222 $ 782 $ 1,592 Residential mortgage loans Risk rating: Pass $ 2,984 $ 1,704 $ 1,023 $ 477 $ 290 $ 843 $ 35 $ 7,356 Special mention 1 1 — 2 — 4 — 8 Substandard 1 — — — 1 20 — 22 Doubtful — — — — — — — — Total residential mortgage loans $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 Tax-exempt loans Risk rating: Pass $ 264 $ 169 $ 56 $ 115 $ 192 $ 705 $ — $ 1,501 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total tax-exempt loans $ 264 $ 169 $ 56 $ 115 $ 192 $ 705 $ — $ 1,501 September 30, 2022 Loans by origination fiscal year $ in millions 2022 2021 2020 2019 2018 Prior Revolving loans Total FICO score: Below 600 $ 1 $ 3 $ 2 $ 3 $ 1 $ 54 $ — $ 64 600 - 699 155 112 90 32 20 68 4 481 700 - 799 2,403 1,301 744 353 219 470 22 5,512 800 + 424 284 184 87 48 273 6 1,306 FICO score not available 3 5 3 4 3 2 3 23 Total $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 LTV ratio: Below 80% $ 2,287 $ 1,333 $ 797 $ 358 $ 226 $ 661 $ 31 $ 5,693 80%+ 699 372 226 121 65 206 4 1,693 Total $ 2,986 $ 1,705 $ 1,023 $ 479 $ 291 $ 867 $ 35 $ 7,386 September 30, 2021 Loans by origination fiscal year $ in millions 2021 2020 2019 2018 2017 Prior Revolving loans Total FICO score: Below 600 $ 3 $ 2 $ 4 $ 1 $ 46 $ 11 $ — $ 67 600 - 699 134 114 46 32 16 73 1 416 700 - 799 1,420 921 483 294 252 386 16 3,772 800 + 303 228 107 59 138 220 3 1,058 FICO score not available 1 1 — 1 1 1 — 5 Total $ 1,861 $ 1,266 $ 640 $ 387 $ 453 $ 691 $ 20 $ 5,318 LTV ratio: Below 80% $ 1,451 $ 990 $ 480 $ 304 $ 378 $ 500 $ 20 $ 4,123 80%+ 410 276 160 83 75 191 — 1,195 Total $ 1,861 $ 1,266 $ 640 $ 387 $ 453 $ 691 $ 20 $ 5,318 |
Changes in the Allowance for Credit Losses | The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment. The allowance for credit losses on held for investment bank loans and related provision for fiscal 2020 were calculated under the incurred loss model. $ in millions SBL C&I loans CRE loans REIT loans Residential Tax-exempt loans Total Year ended September 30, 2022 Balance at beginning of year $ 4 $ 191 $ 66 $ 22 $ 35 $ 2 $ 320 Initial allowance on acquired PCD loans — 1 2 — — — 3 Provision/(benefit) for credit losses: Initial provision for credit losses on non-PCD loans acquired with TriState Capital 2 5 19 — — — 26 Provision/(benefit) for credit losses (3) 57 — (1) 21 — 74 Total provision/(benefit) for credit losses (1) 62 19 (1) 21 — 100 Net (charge-offs)/recoveries: Charge-offs — (28) (4) — — — (32) Recoveries — — 5 — 1 — 6 Net (charge-offs)/recoveries — (28) 1 — 1 — (26) Foreign exchange translation adjustment — — (1) — — — (1) Balance at end of year $ 3 $ 226 $ 87 $ 21 $ 57 $ 2 $ 396 ACL by loan portfolio segment as a % of total ACL 0.8 % 57.0 % 22.0 % 5.3 % 14.4 % 0.5 % 100.0 % Year ended September 30, 2021 Balance at beginning of year $ 5 $ 200 $ 81 $ 36 $ 18 $ 14 $ 354 Impact of CECL adoption (2) 19 (11) (9) 24 (12) 9 Provision/(benefit) for credit losses 1 (25) 5 (5) (8) — (32) Net (charge-offs)/recoveries: Charge-offs — (4) (10) — — — (14) Recoveries — — — — 1 — 1 Net (charge-offs)/recoveries — (4) (10) — 1 — (13) Foreign exchange translation adjustment — 1 1 — — — 2 Balance at end of year $ 4 $ 191 $ 66 $ 22 $ 35 $ 2 $ 320 ACL by loan portfolio segment as a % of total ACL 1.3 % 59.7 % 20.6 % 6.9 % 10.9 % 0.6 % 100.0 % Year ended September 30, 2020 Balance at beginning of year $ 5 $ 139 $ 34 $ 15 $ 16 $ 9 $ 218 Provision/(benefit) for credit losses — 157 48 23 — 5 233 Net (charge-offs)/recoveries: Charge-offs — (96) (2) (2) — — (100) Recoveries — — — — 2 — 2 Net (charge-offs)/recoveries — (96) (2) (2) 2 — (98) Foreign exchange translation adjustment — — 1 — — — 1 Balance at end of year $ 5 $ 200 $ 81 $ 36 $ 18 $ 14 $ 354 ACL by loan portfolio segment as a % of total ACL 1.4 % 56.4 % 22.9 % 10.2 % 5.1 % 4.0 % 100.0 % |
LOANS TO FINANCIAL ADVISORS, _2
LOANS TO FINANCIAL ADVISORS, NET (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents the balances for our loans to financial advisors and the related accrued interest receivable. September 30, $ in millions 2022 2021 Affiliated with the firm as of year-end (1) $ 1,173 $ 1,074 No longer affiliated with the firm as of year-end (2) 8 10 Total loans to financial advisors 1,181 1,084 Allowance for credit losses (29) (27) Loans to financial advisors, net $ 1,152 $ 1,057 Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”) $ 5 $ 4 Allowance for credit losses as a percent of total loans to financial advisors 2.46 % 2.49 % (1) These loans were predominantly current. (2) These loans were predominantly past due for a period of 180 days or more. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Variable Interest Entities [Abstract] | |
VIEs Where We are the Primary Beneficiary - Aggregate Assets and Liabilities | The aggregate assets and liabilities of the VIEs we consolidate are provided in the 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 millions Aggregate Aggregate September 30, 2022 LIHTC funds $ 59 $ 6 Restricted Stock Trust Fund 17 17 Total $ 76 $ 23 September 30, 2021 LIHTC funds $ 111 $ 52 Private Equity Interests 66 4 Restricted Stock Trust Fund 15 15 Total $ 192 $ 71 |
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 and liabilities of the VIEs which we consolidate and which are included on our Consolidated Statements of Financial Condition. Intercompany balances are eliminated in consolidation and are not reflected in the following table. September 30, $ in millions 2022 2021 Assets: Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash $ 5 $ 10 Other investments — 63 Other assets 54 105 Total assets $ 59 $ 178 Liabilities: Other payables $ — $ 45 Total liabilities $ — $ 45 Noncontrolling interests $ (26) $ 58 |
VIEs Where We Hold a Variable Interest but We are Not the Primary Beneficiary - Aggregate Assets, Liabilities, and Exposure to Loss | The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but as to which we have concluded we are not the primary beneficiary, are provided in the following table. September 30, 2022 2021 $ in millions Aggregate Aggregate Our risk Aggregate Aggregate Our risk LIHTC funds $ 7,752 $ 2,584 $ 136 $ 7,032 $ 2,280 $ 71 Private Equity Interests 2,177 448 90 7,318 47 82 Other 159 101 8 519 155 10 Total $ 10,088 $ 3,133 $ 234 $ 14,869 $ 2,482 $ 163 |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 millions 2022 2021 Goodwill $ 1,422 $ 660 Identifiable intangible assets, net 509 222 Total goodwill and identifiable intangible assets, net $ 1,931 $ 882 |
Schedule of Goodwill Balance and Activity | The following table summarizes our goodwill by segment and the balances and activity for the years indicated. $ in millions Private Client Group Capital Asset Bank Total Year ended September 30, 2022 Goodwill as of beginning of year $ 417 $ 174 $ 69 $ — $ 660 Additions 164 102 — 529 795 Foreign currency translations (31) (2) — — (33) Goodwill as of end of year $ 550 $ 274 $ 69 $ 529 $ 1,422 Year ended September 30, 2021 Goodwill as of beginning of year $ 277 $ 120 $ 69 $ — $ 466 Additions 139 54 — — 193 Foreign currency translations 1 — — — 1 Goodwill as of end of year $ 417 $ 174 $ 69 $ — $ 660 |
Schedule of Finite-Lived Intangible Assets Balance and Activity | The following table sets forth our identifiable intangible asset balances by segment, net of accumulated amortization, and activity for the years indicated. $ in millions Private Client Group Capital Asset Bank Total Year ended September 30, 2022 Net identifiable intangible assets as of beginning of year $ 120 $ 17 $ 85 $ — $ 222 Additions 85 52 61 136 334 Amortization expense (13) (9) (7) (4) (33) Foreign currency translations (14) — — — (14) Net identifiable intangible assets as of end of year $ 178 $ 60 $ 139 $ 132 $ 509 Year ended September 30, 2021 Net identifiable intangible assets as of beginning of year $ 31 $ 13 $ 90 $ — $ 134 Additions 96 13 — — 109 Amortization expense (7) (9) (5) — (21) Net identifiable intangible assets as of end of year $ 120 $ 17 $ 85 $ — $ 222 |
Schedule of Indefinite-lived Intangible Assets by Major Class | The following table summarizes our identifiable intangible assets by type. September 30, 2022 2021 $ in millions Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 361 $ (103) $ 238 $ (79) Core deposit intangible 89 (3) — — Developed technology 58 (4) 3 (2) Non-amortizing customer relationships 57 — 52 — Trade names 57 (5) 12 (5) All other 6 (4) 7 (4) Total $ 628 $ (119) $ 312 $ (90) |
Schedule of Finite-Lived Intangible Assets by Major Class | The following table summarizes the fair value and weighted average estimated useful life of identifiable intangibles assets acquired as of the respective acquisition dates. TriState Capital Charles Stanley and SumRidge Partners $ in millions Estimated fair value Weighted average estimated Estimated fair value Weighted average estimated Fair value of identifiable intangible assets acquired: Core deposit intangible $ 89 10 years $ — — Customer relationships 54 17 years 80 12 years Trade names 33 20 years 17 9 years Developed technology 16 10 years 40 8 years Non-amortizing customer relationships 5 N/A — N/A Total identifiable intangibles assets acquired $ 197 $ 137 The following table summarizes our identifiable intangible assets by type. September 30, 2022 2021 $ in millions Gross carrying value Accumulated amortization Gross carrying value Accumulated amortization Customer relationships $ 361 $ (103) $ 238 $ (79) Core deposit intangible 89 (3) — — Developed technology 58 (4) 3 (2) Non-amortizing customer relationships 57 — 52 — Trade names 57 (5) 12 (5) All other 6 (4) 7 (4) Total $ 628 $ (119) $ 312 $ (90) |
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 millions 2023 $ 43 2024 42 2025 40 2026 38 2027 37 Thereafter 252 Total $ 452 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Assets | The following table details the components of other assets. See Note 2 for a discussion of the accounting polices related to certain of these components. September 30, $ in millions 2022 2021 Investments in company-owned life insurance policies $ 944 $ 952 Property and equipment, net 503 499 Lease ROU assets 480 446 Prepaid expenses 173 127 Investments in FHLB and FRB stock 88 72 All other 264 161 Total other assets $ 2,452 $ 2,257 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The following table presents the components of our property and equipment, net as of the dates indicated. September 30, 2022 2021 $ in millions Gross Accumulated Property and Gross Accumulated depreciation/ Property and Land $ 29 $ — $ 29 $ 29 $ — $ 29 Software, including development in progress 660 (422) 238 606 (362) 244 Buildings, building components, leasehold and land improvements 413 (239) 174 397 (225) 172 Furniture, fixtures and equipment 356 (294) 62 321 (267) 54 Total $ 1,458 $ (955) $ 503 $ 1,353 $ (854) $ 499 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Balances Related to Leases | The following table presents the balances related to our leases on our Consolidated Statements of Financial Condition. See Note 2 for a discussion of our accounting policies related to leases. September 30, $ in millions 2022 2021 ROU assets (included in Other assets) $ 480 $ 446 Lease liabilities (included in Other payables) $ 482 $ 450 |
Schedule of Lease Costs | The weighted-average remaining lease term and discount rate for our leases is presented in the following table. September 30, 2022 2021 Weighted-average remaining lease term 6.8 years 6.7 years Weighted-average discount rate 3.95 % 3.45 % The following table details the components of lease expense, which is included in “Occupancy and equipment” expense on our Consolidated Statements of Income and Comprehensive Income. Year ended September 30, $ in millions 2022 2021 2020 Lease costs $ 118 $ 110 $ 98 Variable lease costs $ 28 $ 27 $ 26 |
Lease Maturities | The maturities by fiscal year of our lease liabilities as of September 30, 2022 are presented in the following table. Fiscal year ended September 30, $ in millions 2023 $ 117 2024 97 2025 76 2026 62 2027 47 Thereafter 160 Gross lease payments 559 Less: interest (77) Present value of lease liabilities $ 482 |
BANK DEPOSITS (Tables)
BANK DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Deposits [Abstract] | |
Summary of Bank Deposits | The following table presents a summary of bank deposits, as well as the weighted-average interest rates on such deposits. The calculation of the weighted-average rates was based on the actual deposit balances and rates at each respective period end. September 30, 2022 2021 $ in millions Balance Weighted-average rate Balance Weighted-average rate Money market and savings accounts $ 44,446 1.01 % $ 31,415 0.01 % Interest-bearing checking accounts 5,286 2.77 % 164 1.84 % Certificates of deposit 999 1.85 % 878 1.87 % Non-interest-bearing checking accounts 626 — 38 — Total bank deposits $ 51,357 1.21 % $ 32,495 0.07 % |
Scheduled Maturities of Certificates of Deposit | The following table sets forth the amount of estimated certificates of deposit that exceeded the FDIC insurance limit by time remaining until maturity as of September 30, 2022. $ in millions September 30, 2022 Three months or less $ 45 Over three through six months 14 Over six through twelve months 9 Over twelve months 9 Total estimated certificates of deposit that exceeded the FDIC insurance limit $ 77 |
Maturities by Fiscal Year of Certificates of Deposit | The maturities by fiscal year of our certificates of deposit as of September 30, 2022 are presented in the following table. Fiscal year ended September 30, $ in millions 2023 $ 600 2024 253 2025 129 2026 11 2027 6 Total certificates of deposit $ 999 |
Interest Expense on Deposits | Interest expense on deposits, excluding interest expense related to affiliated deposits, is summarized in the following table. Year ended September 30, $ in millions 2022 2021 2020 Money market and savings accounts $ 78 $ 3 $ 19 Interest-bearing checking accounts 38 3 2 Certificates of deposit 15 17 20 Total interest expense on deposits $ 131 $ 23 $ 41 |
OTHER BORROWINGS (Tables)
OTHER BORROWINGS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Other Borrowings | The following table details the components of our other borrowings, which are primarily comprised of short-term and long-term FHLB advances and subordinated notes. September 30, $ in millions 2022 2021 FHLB advances $ 1,190 $ 850 5.75% fixed-to-floating subordinated notes, due 2030 (including premium of $2 and $0, respectively) 100 — Other 1 8 Total other borrowings $ 1,291 $ 858 |
SENIOR NOTES PAYABLE (Tables)
SENIOR NOTES PAYABLE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes Payable | The following table summarizes our senior notes payable. September 30, $ in millions 2022 2021 4.65% senior notes, due 2030 $ 500 $ 500 4.95% senior notes, due 2046 800 800 3.75% senior notes, due 2051 750 750 Total principal amount 2,050 2,050 Unaccreted premiums/(discounts) 5 5 Unamortized debt issuance costs (17) (18) Total senior notes payable $ 2,038 $ 2,037 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 millions 2022 2021 2020 Recorded in: Net income $ 513 $ 388 $ 234 Equity, arising from available-for-sale securities recorded through OCI (311) (32) 23 Equity, arising from currency translations, net of the impact of net investment hedges recorded through OCI 23 (10) 2 Equity, arising from cash flow hedges recorded through OCI 24 8 (12) Total provision for income taxes $ 249 $ 354 $ 247 |
Provision (Benefit) for Income Taxes | The following table details our provision/(benefit) for income taxes included in net income for each respective period. Year ended September 30, $ in millions 2022 2021 2020 Current: Federal $ 406 $ 321 $ 215 State and local 91 79 49 Foreign 32 25 9 Total current $ 529 $ 425 $ 273 Deferred: Federal (10) (28) (36) State and local (3) (6) (3) Foreign (3) (3) — Total deferred $ (16) $ (37) $ (39) Total provision for income taxes $ 513 $ 388 $ 234 |
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, 2022 2021 2020 Provision calculated at statutory rate 21.0 % 21.0 % 21.0 % State income tax, net of federal benefit 3.6 % 3.6 % 3.7 % (Gains)/losses on company-owned life insurance policies which are not subject to tax 1.8 % (1.8) % (1.0) % Nondeductible compensation 0.4 % 0.3 % 0.4 % Change in uncertain tax positions 0.3 % (0.1) % 0.2 % Foreign tax rate differential 0.2 % 0.2 % 0.2 % Tax credits (1.2) % (1.0) % (1.6) % Excess tax benefits related to share-based compensation (1.1) % (0.2) % (0.6) % Other, net 0.4 % (0.3) % (0.1) % Total provision for income tax 25.4 % 21.7 % 22.2 % |
U.S. and Foreign Components of Income Before Income Taxes | The following table presents our U.S. and foreign components of pre-tax income for each respective period. Year ended September 30, $ in millions 2022 2021 2020 U.S. $ 1,907 $ 1,701 $ 1,019 Foreign 115 90 33 Pre-tax income $ 2,022 $ 1,791 $ 1,052 |
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 millions 2022 2021 Deferred tax assets: Unrealized loss associated with available-for-sale securities $ 343 $ 2 Deferred compensation 272 287 Lease liabilities 121 115 Allowances for credit losses 106 81 Accrued expenses 54 46 Unrealized loss associated with loan portfolios 34 — Unrealized loss associated with foreign currency translations 27 3 Partnership investments 2 9 Unrealized loss associated with cash flow hedges — 9 Other 31 18 Total deferred tax assets $ 990 $ 570 Deferred tax liabilities: Goodwill and identifiable intangible assets (126) (64) Lease ROU assets (118) (114) Property and equipment (110) (85) Unrealized gain associated with cash flow hedges (15) — Other (5) (2) Total deferred tax liabilities $ (374) $ (265) Net deferred tax assets $ 616 $ 305 Classified as follows in the Consolidated Statements of Financial Condition: Deferred income taxes, net $ 630 $ 305 Other payables (14) — Net deferred tax assets $ 616 $ 305 |
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 millions 2022 2021 2020 Uncertain tax positions beginning of year $ 36 $ 45 $ 42 Increases for tax positions related to the current year 5 5 5 Increases for tax positions related to prior years 10 2 3 Decreases for tax positions related to prior years (1) (7) (1) Decreases due to lapsed statute of limitations (7) (5) (4) Decreases related to settlements — (4) — Uncertain tax positions end of year $ 43 $ 36 $ 45 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Off-Balance Sheet Risks | The following table presents our commitments to extend credit and other credit-related off-balance sheet financial instruments outstanding at our Bank segment. September 30, $ in millions 2022 2021 SBL and other consumer lines of credit $ 33,641 $ 17,515 Commercial lines of credit $ 3,792 $ 2,075 Unfunded lending commitments $ 1,255 $ 548 Standby letters of credit $ 94 $ 22 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Dividends Declared and Paid | The following table details dividends declared and dividends paid on our preferred stock for the year ended September 30, 2022. Year ended September 30, 2022 $ in millions, except per share amounts Total dividends Per preferred Dividends declared: Series A Preferred Stock $ 1 $ 33.75 Series B Preferred Stock 3 $ 31.88 Total preferred stock dividends declared $ 4 Dividends paid: Series A Preferred Stock $ 1 $ 16.88 Series B Preferred Stock 1 $ 15.94 Total preferred stock dividends paid $ 2 Dividends per common share declared and paid are detailed in the following table for each respective period. Year ended September 30, 2022 2021 2020 Dividends per common share - declared $ 1.36 $ 1.04 $ 0.99 Dividends per common share - paid $ 1.28 $ 1.03 $ 0.97 Our dividend payout ratio is detailed in the following table for each respective period and is computed by dividing dividends declared per common share by earnings per diluted common share. Year ended September 30, 2022 2021 2020 Dividend payout ratio 19.5 % 15.7 % 25.4 % |
Schedule of AOCI | The following table presents the net change in AOCI as well as the changes, and the related tax effects, of each component of AOCI. $ in millions Net investment hedges Currency translations Subtotal: net investment hedges and currency translations Available-for-sale securities Cash flow hedges Total Year ended September 30, 2022 AOCI as of beginning of year $ 81 $ (90) $ (9) $ (5) $ (27) $ (41) OCI: OCI before reclassifications and taxes 95 (186) (91) (1,208) 85 (1,214) Amounts reclassified from AOCI, before tax — — — — 9 9 Pre-tax net OCI 95 (186) (91) (1,208) 94 (1,205) Income tax effect (23) — (23) 311 (24) 264 OCI for the year, net of tax 72 (186) (114) (897) 70 (941) AOCI as of end of year $ 153 $ (276) $ (123) $ (902) $ 43 $ (982) Year ended September 30, 2021 AOCI as of beginning of year $ 115 $ (140) $ (25) $ 89 $ (53) $ 11 OCI: OCI before reclassifications and taxes (44) 48 4 (119) 19 (96) Amounts reclassified from AOCI, before tax — 2 2 (7) 15 10 Pre-tax net OCI (44) 50 6 (126) 34 (86) Income tax effect 10 — 10 32 (8) 34 OCI for the year, net of tax (34) 50 16 (94) 26 (52) AOCI as of end of year $ 81 $ (90) $ (9) $ (5) $ (27) $ (41) Year ended September 30, 2020 AOCI as of beginning of year $ 110 $ (135) $ (25) $ 21 $ (19) $ (23) OCI: OCI before reclassifications and taxes 7 (5) 2 94 (51) 45 Amounts reclassified from AOCI, before tax — — — (3) 5 2 Pre-tax net OCI 7 (5) 2 91 (46) 47 Income tax effect (2) — (2) (23) 12 (13) OCI for the year, net of tax 5 (5) — 68 (34) 34 AOCI as of end of year $ 115 $ (140) $ (25) $ 89 $ (53) $ 11 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our sources of revenues by segment. For further information about our significant accounting policies related to revenue recognition, see Note 2. See Note 26 for additional information on our segment results. Year ended September 30, 2022 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 4,710 $ 3 $ 882 $ — $ (32) $ 5,563 Brokerage revenues: Securities commissions: Mutual and other fund products 620 6 7 — (2) 631 Insurance and annuity products 438 — — — — 438 Equities, ETFs and fixed income products 382 138 — — — 520 Subtotal securities commissions 1,440 144 7 — (2) 1,589 Principal transactions (1) 76 446 — 5 — 527 Total brokerage revenues 1,516 590 7 5 (2) 2,116 Account and service fees: Mutual fund and annuity service fees 428 — 1 — (2) 427 RJBDP fees 559 1 — — (358) 202 Client account and other fees 220 7 21 — (44) 204 Total account and service fees 1,207 8 22 — (404) 833 Investment banking: Merger & acquisition and advisory — 709 — — — 709 Equity underwriting 38 210 — — — 248 Debt underwriting — 143 — — — 143 Total investment banking 38 1,062 — — — 1,100 Other: Affordable housing investments business revenues — 127 — — — 127 All other (1) 32 10 1 26 (8) 61 Total other 32 137 1 26 (8) 188 Total non-interest revenues 7,503 1,800 912 31 (446) 9,800 Interest income (1) 249 36 2 1,209 12 1,508 Total revenues 7,752 1,836 914 1,240 (434) 11,308 Interest expense (42) (27) — (156) (80) (305) Net revenues $ 7,710 $ 1,809 $ 914 $ 1,084 $ (514) $ 11,003 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Year ended September 30, 2021 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 4,056 $ 4 $ 837 $ — $ (29) $ 4,868 Brokerage revenues: Securities commissions: Mutual and other fund products 670 6 10 — (3) 683 Insurance and annuity products 438 — — — — 438 Equities, ETFs and fixed income products 388 143 — — (1) 530 Subtotal securities commissions 1,496 149 10 — (4) 1,651 Principal transactions (1) 50 511 — — — 561 Total brokerage revenues 1,546 660 10 — (4) 2,212 Account and service fees: Mutual fund and annuity service fees 408 — — — (2) 406 RJBDP fees 259 1 — — (184) 76 Client account and other fees 157 7 18 — (29) 153 Total account and service fees 824 8 18 — (215) 635 Investment banking: Merger & acquisition and advisory — 639 — — — 639 Equity underwriting 47 285 — — — 332 Debt underwriting — 172 — — — 172 Total investment banking 47 1,096 — — — 1,143 Other: Affordable housing investments business revenues — 105 — — — 105 All other (1) 25 6 2 30 61 124 Total other 25 111 2 30 61 229 Total non-interest revenues 6,498 1,879 867 30 (187) 9,087 Interest income (1) 123 16 — 684 — 823 Total revenues 6,621 1,895 867 714 (187) 9,910 Interest expense (10) (10) — (42) (88) (150) Net revenues $ 6,611 $ 1,885 $ 867 $ 672 $ (275) $ 9,760 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. Year ended September 30, 2020 $ in millions Private Client Group Capital Markets Asset Management Bank Other and intersegment eliminations Total Revenues: Asset management and related administrative fees $ 3,162 $ 7 $ 688 $ — $ (23) $ 3,834 Brokerage revenues: Securities commissions: Mutual and other fund products 567 7 8 — (3) 579 Insurance and annuity products 397 — — — — 397 Equities, ETFs and fixed income products 355 137 — — — 492 Subtotal securities commissions 1,319 144 8 — (3) 1,468 Principal transactions (1) 64 427 — 1 (4) 488 Total brokerage revenues 1,383 571 8 1 (7) 1,956 Account and service fees: Mutual fund and annuity service fees 348 — 1 — (1) 348 RJBDP fees 330 1 — — (181) 150 Client account and other fees 129 5 15 — (23) 126 Total account and service fees 807 6 16 — (205) 624 Investment banking: Merger & acquisition and advisory — 290 — — — 290 Equity underwriting 41 185 — — 1 227 Debt underwriting — 133 — — — 133 Total investment banking 41 608 — — 1 650 Other: Affordable housing investments business revenues — 83 — — — 83 All other (1) 27 7 2 26 (41) 21 Total other 27 90 2 26 (41) 104 Total non-interest revenues 5,420 1,282 714 27 (275) 7,168 Interest income (1) 155 25 1 800 19 1,000 Total revenues 5,575 1,307 715 827 (256) 8,168 Interest expense (23) (16) — (62) (77) (178) Net revenues $ 5,552 $ 1,291 $ 715 $ 765 $ (333) $ 7,990 (1) These revenues are generally not in scope of the accounting guidance for revenue from contracts with customers. |
INTEREST INCOME AND INTEREST _2
INTEREST INCOME AND INTEREST EXPENSE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 millions 2022 2021 2020 Interest income: Cash and cash equivalents $ 48 $ 12 $ 41 Assets segregated for regulatory purposes and restricted cash 96 15 28 Trading assets — debt securities 27 13 18 Available-for-sale securities 136 85 83 Brokerage client receivables 100 77 84 Bank loans, net 1,051 593 702 All other 50 28 44 Total interest income 1,508 823 1,000 Interest expense: Bank deposits 131 23 41 Trading liabilities — debt securities 12 2 3 Brokerage client payables 24 3 11 Other borrowings 21 19 20 Senior notes payable 93 96 85 All other 24 7 18 Total interest expense 305 150 178 Net interest income 1,203 673 822 Bank loan (provision)/benefit for credit losses (100) 32 (233) Net interest income after bank loan (provision)/benefit for credit losses $ 1,103 $ 705 $ 589 |
SHARE-BASED AND OTHER COMPENS_2
SHARE-BASED AND OTHER COMPENSATION (Tables) - Restricted Stock | 12 Months Ended |
Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Rollforward Activity | The following table presents the RSU award activity, which includes grants to employees, independent contractor financial advisors, and members of our Board of Directors, for the year ended September 30, 2022. Shares/Units Weighted- average grant date fair value (per share) Non-vested as of beginning of year 8.2 $ 56.59 Granted (1) 3.4 $ 98.52 Vested (2.4) $ 50.55 Forfeited (0.2) $ 68.45 Non-vested as of end of year 9.0 $ 73.73 (1) Includes RSUs granted as part of acquisition-related retention initiatives. See Note 3 for additional information regarding our acquisitions. |
Expense and Income Tax Benefits Related to Awards | The following table presents expense and income tax benefits related to our RSUs granted to our employees, independent contractor financial advisors, and members of our Board of Directors for the periods indicated. Year ended September 30, $ in millions 2022 2021 2020 RSU share-based compensation amortization $ 179 $ 126 $ 110 Income tax benefits related to share-based expense $ 41 $ 29 $ 25 |
Summary of Restricted Stock Activity | The following RSU activity occurred for the periods indicated. Year ended September 30, $ in millions, except per unit award amounts 2022 2021 2020 Weighted-average grant date fair value per unit award $ 98.52 $ 63.86 $ 58.20 Total fair value of RSUs vested $ 115 $ 87 $ 83 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 or to be categorized as “well-capitalized,” RJF must maintain minimum Tier 1 leverage, Tier 1 capital, CET1, and Total capital amounts and ratios as set forth in the following table. Actual Requirement for capital To be well-capitalized under regulatory provisions $ in millions Amount Ratio Amount Ratio Amount Ratio RJF as of September 30, 2022: Tier 1 leverage $ 8,480 10.3 % $ 3,304 4.0 % $ 4,130 5.0 % Tier 1 capital $ 8,480 19.2 % $ 2,651 6.0 % $ 3,534 8.0 % CET1 $ 8,380 19.0 % $ 1,988 4.5 % $ 2,871 6.5 % Total capital $ 9,031 20.4 % $ 3,534 8.0 % $ 4,418 10.0 % RJF as of September 30, 2021: Tier 1 leverage $ 7,428 12.6 % $ 2,363 4.0 % $ 2,954 5.0 % Tier 1 capital $ 7,428 25.0 % $ 1,783 6.0 % $ 2,377 8.0 % CET1 $ 7,428 25.0 % $ 1,337 4.5 % $ 1,932 6.5 % Total capital $ 7,780 26.2 % $ 2,377 8.0 % $ 2,972 10.0 % |
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,” Raymond James Bank and TriState Capital Bank must maintain Tier 1 leverage, Tier 1 capital, CET1, and Total capital amounts and ratios as set forth in the following tables. Our intention is to maintain Raymond James Bank’s and TriState Capital Bank’s “well-capitalized” status. In the unlikely event that Raymond James Bank or TriState Capital Bank failed to maintain their “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 result in higher FDIC premiums, but would not significantly impact our operations. Actual Requirement for capital To be well-capitalized under regulatory provisions $ in millions Amount Ratio Amount Ratio Amount Ratio Raymond James Bank as of September 30, 2022: Tier 1 leverage $ 2,998 7.1 % $ 1,695 4.0 % $ 2,119 5.0 % Tier 1 capital $ 2,998 12.1 % $ 1,485 6.0 % $ 1,979 8.0 % CET1 $ 2,998 12.1 % $ 1,113 4.5 % $ 1,608 6.5 % Total capital $ 3,308 13.4 % $ 1,979 8.0 % $ 2,474 10.0 % Raymond James Bank as of September 30, 2021: Tier 1 leverage $ 2,626 7.4 % $ 1,411 4.0 % $ 1,763 5.0 % Tier 1 capital $ 2,626 13.4 % $ 1,177 6.0 % $ 1,569 8.0 % CET1 $ 2,626 13.4 % $ 883 4.5 % $ 1,275 6.5 % Total capital $ 2,873 14.6 % $ 1,569 8.0 % $ 1,962 10.0 % |
TriState Capital Bank | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Summary of Minimum Requirements Under Regulatory Framework | Actual Requirement for capital To be well-capitalized $ in millions Amount Ratio Amount Ratio Amount Ratio TriState Capital Bank as of September 30, 2022: Tier 1 leverage $ 1,093 7.3 % $ 601 4.0 % $ 752 5.0 % Tier 1 capital $ 1,093 14.1 % $ 463 6.0 % $ 618 8.0 % CET1 $ 1,093 14.1 % $ 348 4.5 % $ 502 6.5 % Total capital $ 1,122 14.5 % $ 618 8.0 % $ 772 10.0 % |
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 millions 2022 2021 Raymond James & Associates, Inc.: (Alternative Method elected) Net capital as a percent of aggregate debit items 40.9 % 72.1 % Net capital $ 1,152 $ 2,035 Less: required net capital (56) (56) Excess net capital $ 1,096 $ 1,979 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 millions, except per share amounts 2022 2021 2020 Income for basic earnings per common share: Net income available to common shareholders $ 1,505 $ 1,403 $ 818 Less allocation of earnings and dividends to participating securities (3) (2) (1) Net income available to common shareholders after participating securities $ 1,502 $ 1,401 $ 817 Income for diluted earnings per common share: Net income available to common shareholders $ 1,505 $ 1,403 $ 818 Less allocation of earnings and dividends to participating securities (3) (2) (1) Net income available to common shareholders after participating securities $ 1,502 $ 1,401 $ 817 Common shares: Average common shares in basic computation 209.9 205.7 206.4 Dilutive effect of outstanding stock options and certain RSUs 5.4 5.5 3.9 Average common and common equivalent shares used in diluted computation 215.3 211.2 210.3 Earnings per common share: Basic $ 7.16 $ 6.81 $ 3.96 Diluted $ 6.98 $ 6.63 $ 3.88 Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive 0.1 0.1 2.3 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table presents information concerning operations in these segments, inclusive of our acquisitions. Year ended September 30, $ in millions 2022 2021 2020 Net revenues: Private Client Group $ 7,710 $ 6,611 $ 5,552 Capital Markets 1,809 1,885 1,291 Asset Management 914 867 715 Bank 1,084 672 765 Other (50) (8) (82) Intersegment eliminations (464) (267) (251) Total net revenues $ 11,003 $ 9,760 $ 7,990 Pre-tax income/(loss): Private Client Group $ 1,030 $ 749 $ 539 Capital Markets 415 532 225 Asset Management 386 389 284 Bank 382 367 196 Other (191) (246) (192) Total pre-tax income $ 2,022 $ 1,791 $ 1,052 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents information concerning operations in these segments, inclusive of our acquisitions. Year ended September 30, $ in millions 2022 2021 2020 Net revenues: Private Client Group $ 7,710 $ 6,611 $ 5,552 Capital Markets 1,809 1,885 1,291 Asset Management 914 867 715 Bank 1,084 672 765 Other (50) (8) (82) Intersegment eliminations (464) (267) (251) Total net revenues $ 11,003 $ 9,760 $ 7,990 Pre-tax income/(loss): Private Client Group $ 1,030 $ 749 $ 539 Capital Markets 415 532 225 Asset Management 386 389 284 Bank 382 367 196 Other (191) (246) (192) Total pre-tax income $ 2,022 $ 1,791 $ 1,052 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | The following table presents our net interest income on a segment basis. Year ended September 30, $ in millions 2022 2021 2020 Net interest income/(expense): Private Client Group $ 207 $ 113 $ 132 Capital Markets 9 6 9 Asset Management 2 — 1 Bank 1,053 642 738 Other (68) (88) (58) Net interest income $ 1,203 $ 673 $ 822 The following table presents goodwill, which was included in our total assets, on a segment basis. September 30, $ in millions 2022 2021 Goodwill: Private Client Group $ 550 $ 417 Capital Markets 274 174 Asset Management 69 69 Bank 529 — Total $ 1,422 $ 660 The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held. September 30, $ in millions 2022 2021 Goodwill: U.S. $ 1,250 $ 619 Canada 23 25 Europe 149 16 Total $ 1,422 $ 660 |
Reconciliation of Assets from Segment to Consolidated | The following table presents our total assets on a segment basis. September 30, $ in millions 2022 2021 Total assets: Private Client Group $ 17,770 $ 20,270 Capital Markets 3,951 2,457 Asset Management 556 476 Bank 56,737 36,154 Other 1,937 2,534 Total $ 80,951 $ 61,891 |
Revenues, Income Before Provision for Income Taxes and Excluding Noncontrolling Interests, and Total Assets, Classified by Major Geographic Areas | The following table presents our net revenues and pre-tax income classified by major geographic area in which they were earned. Year ended September 30, $ in millions 2022 2021 2020 Net revenues: U.S. $ 10,065 $ 9,067 $ 7,446 Canada 542 485 386 Europe 396 208 158 Total $ 11,003 $ 9,760 $ 7,990 Pre-tax income/(loss): U.S. $ 1,907 $ 1,701 $ 1,028 Canada 83 53 29 Europe 32 37 (5) Total $ 2,022 $ 1,791 $ 1,052 The following table presents our total assets by major geographic area in which they were held. September 30, $ in millions 2022 2021 Total assets: U.S. $ 74,428 $ 57,952 Canada 3,631 3,724 Europe 2,892 215 Total $ 80,951 $ 61,891 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statement of Financial Condition | The following table presents the Parent’s statements of financial condition. September 30, $ in millions 2022 2021 Assets: Cash and cash equivalents $ 629 $ 527 Assets segregated for regulatory purposes and restricted cash ( $1 and $1 at fair value) 31 478 Intercompany receivables from subsidiaries (primarily non-bank subsidiaries) 1,624 877 Investments in consolidated subsidiaries: Bank subsidiaries 3,549 2,594 Non-bank subsidiaries 5,611 5,703 Goodwill and identifiable intangible assets, net 32 32 All other 907 1,055 Total assets $ 12,383 $ 11,266 Liabilities and equity: Accrued compensation, commissions and benefits $ 715 $ 798 Intercompany payables to subsidiaries: Bank subsidiaries — 2 Non-bank subsidiaries 17 33 Senior notes payable 2,038 2,037 All other 155 151 Total liabilities 2,925 3,021 Equity 9,458 8,245 Total liabilities and equity $ 12,383 $ 11,266 |
Condensed Statement of Income | The following table presents the Parent’s statements of income. Year ended September 30, $ in millions 2022 2021 2020 Revenues: Dividends from non-bank subsidiaries $ 2,002 $ 257 $ 634 Dividends from bank subsidiaries 60 — 130 Interest from subsidiaries 23 9 18 Interest income 3 1 3 All other 17 21 23 Total revenues 2,105 288 808 Interest expense (93) (97) (87) Net revenues 2,012 191 721 Non-interest expenses: Compensation, commissions and benefits (1) 98 81 63 Non-compensations expenses: Communications and information processing 6 5 6 Occupancy and equipment 1 1 1 Business development 20 19 18 Losses on extinguishment of debt — 98 — Intercompany allocations and charges (8) (14) (16) Other 64 30 23 Total non-compensation expenses 83 139 32 Total non-interest expenses 181 220 95 Pre-tax income/(loss) before equity in undistributed net income of subsidiaries 1,831 (29) 626 Income tax benefit (20) (99) (58) Income before equity in undistributed net income of subsidiaries 1,851 70 684 Equity in undistributed net income of subsidiaries (2) (342) 1,333 134 Net income 1,509 1,403 818 Preferred stock dividends 4 — — Net income available to common shareholders $ 1,505 $ 1,403 $ 818 (1) The year ended September 30, 2020 included the portion of the reduction in workforce expenses incurred during the fiscal fourth quarter of 2020 that related to the Parent. (2) The year ended September 30, 2022 included significant dividends from RJ&A to RJF, which were in excess of net income for the period. |
Condensed Statement of Cash Flows | The following table presents the Parent’s statements of cash flows. Year ended September 30, $ in millions 2022 2021 2020 Cash flows from operating activities: Net income $ 1,509 $ 1,403 $ 818 Adjustments to reconcile net income to net cash provided by operating activities: Loss on investments 1 5 4 Unrealized (gain)/loss on company-owned life insurance policies, net of expenses 159 (157) (50) Equity in undistributed net income of subsidiaries 342 (1,333) (134) Losses on extinguishment of debt — 98 — Other 161 94 102 Net change in: Intercompany receivables (23) (14) 126 Other assets 40 (35) 24 Intercompany payables (18) (14) (70) Other payables 3 38 43 Accrued compensation, commissions and benefits (82) 202 73 Net cash provided by operating activities 2,092 287 936 Cash flows from investing activities: Investments in subsidiaries (1,092) (420) (106) (Advances to)/repayments from subsidiaries, net (723) 1,039 (885) Investment in note receivable (125) — — Proceeds from sales of investments 7 2 9 Purchase of investments in company-owned life insurance policies, net (63) (36) (55) Net cash provided by/(used in) investing activities (1,996) 585 (1,037) Cash flows from financing activities: Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements (216) (151) (291) Dividends on preferred and common stock (277) (218) (205) Exercise of stock options and employee stock purchases 52 53 62 Proceeds from senior note issuances, net of debt issuance costs paid — 737 494 Extinguishment of senior notes payable — (844) — Net cash provided by/(used in) financing activities (441) (423) 60 Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash (345) 449 (41) Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year 1,004 555 596 Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of year $ 659 $ 1,004 $ 555 Cash and cash equivalents $ 629 $ 527 $ 478 Cash and cash equivalents segregated for regulatory purposes and restricted cash 30 477 77 Total cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of year $ 659 $ 1,004 $ 555 Supplemental disclosures of cash flow information: Cash paid for interest $ 117 $ 89 $ 72 Cash paid for income taxes, net $ 24 $ 35 $ 32 Common stock issued as consideration for TriState Capital acquisition $ 778 $ — $ — Restricted stock awards issued as consideration for TriState Capital acquisition $ 28 $ — $ — Preferred stock issued as consideration for TriState Capital acquisition $ 120 $ — $ — Effective settlement of note receivable for TriState Capital acquisition $ 123 $ — $ — |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Sep. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percent ownership of subsidiaries that are consolidated | 100% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Other Narrative (Details) $ in Millions | 12 Months Ended | |
Jun. 01, 2022 USD ($) | Sep. 30, 2022 USD ($) tax_credit_fund subsidiary institution portfolio_segment investor | |
Bank loans and allowances for losses [Abstract] | ||
Loan discounts, fair value adjustments | $ | $ 145 | |
Loan discounts, fair value adjustments, amortization period | 4 years | |
Number of loan portfolio segments | portfolio_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 | 6 months | |
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 | 60 days | |
Minimum past due for charge-offs to be considered on residential mortgage loans | 90 days | |
Maximum past due for charge-offs taken on residential mortgage loans | 120 days | |
Minimum period for which updated valuation is obtained for loans in pre-foreclosure status | 9 months | |
Brokerage client receivables and loans to financial advisors [Abstract] | ||
Repayment period of loans to financial advisors and certain key revenue producers, minimum | 5 years | |
Repayment period of loans to financial advisors and certain key revenue producers, maximum | 10 years | |
LIHTC Funds [Abstract] | ||
Minimum number of investor members or limited partners of LIHTC Funds (or more) | investor | 1 | |
Number of general types of non-guaranteed tax credit funds | tax_credit_fund | 2 | |
Number of single investor members or limited partners in funds | subsidiary | 1 | |
Number of party with power | subsidiary | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Minimum | Buildings, building components and land improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 15 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, building components and land improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 40 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, TriState Capital
ACQUISITIONS, TriState Capital Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||
Jun. 01, 2022 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Dec. 15, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||
Restricted stock awards issued as consideration for TriState Capital acquisition | $ 28 | $ 0 | $ 0 | ||
Bank loan provision/(benefit) for credit losses | 100 | $ (32) | $ 233 | ||
TriState Capital | |||||
Business Acquisition [Line Items] | |||||
Note receivable | $ 125 | ||||
Note receivable interest rate, year one | 2.25% | ||||
Series A Non-Cumulative Perpetual Preferred Stock | |||||
Business Acquisition [Line Items] | |||||
Preferred stock percentage | 6.75% | ||||
Series A Non-Cumulative Perpetual Preferred Stock | TriState Capital | |||||
Business Acquisition [Line Items] | |||||
Preferred stock percentage | 6.75% | ||||
Series B Non-Cumulative Perpetual Preferred Stock | |||||
Business Acquisition [Line Items] | |||||
Preferred stock percentage | 6.375% | ||||
Series B Non-Cumulative Perpetual Preferred Stock | TriState Capital | |||||
Business Acquisition [Line Items] | |||||
Preferred stock percentage | 6.375% | ||||
TriState Capital | |||||
Business Acquisition [Line Items] | |||||
Cash and stock consideration | $ 1,408 | ||||
Restricted stock awards (in shares) | shares | 551 | ||||
Volume weighted average price, period | 10 days | ||||
Restricted stock awards issued as consideration for TriState Capital acquisition | $ 28 | ||||
Consideration transferred, note receivable | 123 | ||||
Net revenues since acquisition date | 141 | ||||
Net income (loss) since acquisition date | $ 38 | ||||
Bank loan provision/(benefit) for credit losses | 26 | ||||
Lending commitments, provision for credit losses | $ 5 | ||||
TriState Capital | TriState Capital Common Stock | |||||
Business Acquisition [Line Items] | |||||
Share price (in dollars per share) | $ / shares | $ 6 | ||||
Consideration transferred, share issuance ratio | 0.25 | ||||
TriState Capital | TriState Series C Convertible Preferred Stock | |||||
Business Acquisition [Line Items] | |||||
Share price (in dollars per share) | $ / shares | $ 30 |
ACQUISITIONS, TriState - Purcha
ACQUISITIONS, TriState - Purchase Price, Fair Value Estimates of Assets Acquired and Liabilities Assumed, and Resulting Goodwill (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jun. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair value of common stock issued: | ||||
Restricted stock awards issued as consideration for TriState Capital acquisition | $ 28 | $ 0 | $ 0 | |
Fair value of liabilities assumed: | ||||
Goodwill | 1,422 | 660 | 466 | |
Common stock | ||||
Fair value of common stock issued: | ||||
Total fair value of common stock issued | 778 | 0 | 0 | |
Preferred stock | ||||
Fair value of common stock issued: | ||||
Total fair value of common stock issued | $ 120 | $ 0 | $ 0 | |
TriState Capital | ||||
Fair value of common stock issued: | ||||
Other common stock consideration | $ 10 | |||
Total fair value of common stock issued | 778 | |||
Cash consideration | 359 | |||
Effective settlement of the Note | 123 | |||
Restricted stock awards issued as consideration for TriState Capital acquisition | 28 | |||
Total purchase price | 1,408 | |||
Fair value of assets acquired: | ||||
Cash and cash equivalents | 457 | |||
Available-for-sale securities | 1,524 | |||
Derivative assets | 51 | |||
Bank loans, net | 11,549 | |||
Deferred income taxes, net | 26 | |||
Identifiable intangible assets | 197 | |||
All other assets acquired | 226 | |||
All other assets acquired | 59 | |||
Total assets acquired | 14,089 | |||
Fair value of liabilities assumed: | ||||
Bank deposits | 12,593 | |||
Derivative liabilities | 125 | |||
Other borrowings | 375 | |||
All other liabilities assumed | 117 | |||
Total liabilities assumed | 13,210 | |||
Fair value of net identifiable assets acquired | 879 | |||
Goodwill | $ 529 | |||
TriState Capital | Common stock | ||||
Fair value of common stock issued: | ||||
Shares issued (in shares) | 7,861,189 | |||
Share price (in dollars per share) | $ 97.74 | |||
Stock issued | $ 768 | |||
TriState Capital | Preferred stock | ||||
Fair value of common stock issued: | ||||
Total fair value of common stock issued | 120 | |||
TriState Capital | TriState Capital Common Stock | ||||
Fair value of common stock issued: | ||||
Cash consideration | $ 189 | |||
Fair value of liabilities assumed: | ||||
Share price (in dollars per share) | $ 6 | |||
TriState Capital | TriState Series C Convertible Preferred Stock | ||||
Fair value of common stock issued: | ||||
Cash consideration | $ 154 | |||
Fair value of liabilities assumed: | ||||
Share price (in dollars per share) | $ 30 |
ACQUISITIONS, All Other Acquisi
ACQUISITIONS, All Other Acquisitions - Purchase Price, Fair Value Estimates of Assets Acquired and Liabilities Assumed, and Resulting Goodwill (Details) - USD ($) $ in Millions | 5 Months Ended | |||
Jul. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair value of liabilities assumed: | ||||
Goodwill | $ 1,422 | $ 660 | $ 466 | |
Private Client Group | ||||
Fair value of liabilities assumed: | ||||
Goodwill | 550 | 417 | 277 | |
Capital Markets | ||||
Fair value of liabilities assumed: | ||||
Goodwill | $ 274 | $ 174 | $ 120 | |
Charles Stanley and SumRidge Partners | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 686 | |||
Fair value of assets acquired: | ||||
Cash and cash equivalents | 156 | |||
Assets segregated for regulatory purposes | 1,890 | |||
Trading assets | 631 | |||
Brokerage client receivables | 91 | |||
Other receivables | 440 | |||
Identifiable intangible assets | 137 | |||
All other assets acquired | 38 | |||
Total assets acquired | 3,383 | |||
Fair value of liabilities assumed: | ||||
Trading liabilities | 552 | |||
Brokerage client payables | 2,064 | |||
All other liabilities assumed | 347 | |||
Total liabilities assumed | 2,963 | |||
Fair value of net identifiable assets acquired | 420 | |||
Goodwill | 266 | |||
Charles Stanley and SumRidge Partners | Private Client Group | ||||
Fair value of liabilities assumed: | ||||
Goodwill | 164 | |||
Charles Stanley and SumRidge Partners | Capital Markets | ||||
Fair value of liabilities assumed: | ||||
Goodwill | $ 102 |
ACQUISITIONS, All Other Acqui_2
ACQUISITIONS, All Other Acquisitions Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 01, 2022 | Sep. 30, 2022 | |
Charles Stanley and SumRidge Partners | ||
Business Acquisition [Line Items] | ||
Net revenues since acquisition date | $ 187 | |
Net income (loss) since acquisition date | 0 | |
TriState Capital | ||
Business Acquisition [Line Items] | ||
Net revenues since acquisition date | 141 | |
Net income (loss) since acquisition date | $ 38 | |
Long-term debt assumed | $ 11,700 | |
Unpaid principal balance of PCD loans | 337 | |
TriState Capital | Financial Asset Acquired and No Credit Deterioration | ||
Business Acquisition [Line Items] | ||
Long-term debt assumed | $ 11,360 |
ACQUISITIONS, PCD Loans (Detail
ACQUISITIONS, PCD Loans (Details) - TriState Capital $ in Millions | Jun. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Bank loans, net | $ 11,549 |
Unpaid principal balance of PCD loans | 337 |
Allowance for credit losses on PCD loans | (3) |
Non-credit discount on PCD loans | (10) |
Purchase price of PCD loans | $ 324 |
ACQUISITIONS, Identifiable Inta
ACQUISITIONS, Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Millions | 5 Months Ended | |
Jun. 01, 2022 | Jul. 01, 2022 | |
TriState Capital | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total identifiable intangibles assets acquired | $ 197 | |
TriState Capital | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value, indefinite lived intangible assets | 5 | |
TriState Capital | Core deposit intangible | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value, definite lived intangible assets | $ 89 | |
Weighted average estimated useful life | 10 years | |
TriState Capital | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value, definite lived intangible assets | $ 54 | |
Weighted average estimated useful life | 17 years | |
TriState Capital | Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value, definite lived intangible assets | $ 33 | |
Weighted average estimated useful life | 20 years | |
TriState Capital | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value, definite lived intangible assets | $ 16 | |
Weighted average estimated useful life | 10 years | |
Charles Stanley and SumRidge Partners | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total identifiable intangibles assets acquired | $ 137 | |
Charles Stanley and SumRidge Partners | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value, definite lived intangible assets | $ 80 | |
Weighted average estimated useful life | 12 years | |
Charles Stanley and SumRidge Partners | Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value, definite lived intangible assets | $ 17 | |
Weighted average estimated useful life | 9 years | |
Charles Stanley and SumRidge Partners | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value, definite lived intangible assets | $ 40 | |
Weighted average estimated useful life | 8 years |
ACQUISITIONS, Other Borrowings
ACQUISITIONS, Other Borrowings (Details) | Sep. 30, 2022 |
5.75% fixed-to-floating subordinated notes, due 2030 (including premium of $2 and $0, respectively) | |
Business Acquisition [Line Items] | |
Interest rate | 5.75% |
ACQUISITIONS, Pro Forma Financi
ACQUISITIONS, Pro Forma Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Net revenues | $ 11,364 | $ 10,395 |
Pre-tax income | $ 2,195 | $ 1,872 |
FAIR VALUE, Recurring and Nonre
FAIR VALUE, Recurring and Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Assets at fair value on a recurring basis: | ||
Assets segregated for regulatory purposes and restricted cash | $ 8,481 | $ 11,348 |
Total trading assets | 1,270 | 610 |
Available-for-sale securities | 9,885 | 8,315 |
Derivative assets, gross | 536 | 342 |
Amount of derivative assets offset | (348) | (87) |
Derivative assets | 188 | 255 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total trading liabilities | 836 | 176 |
Derivative liability | 595 | 316 |
Derivative liability, collateral, amount of offset | (65) | (88) |
Net amounts presented on the Consolidated Statements of Financial Condition | 530 | 228 |
U.S. Treasuries | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents segregated for regulatory purposes | 500 | 3,550 |
Recurring | ||
Assets at fair value on a recurring basis: | ||
Assets segregated for regulatory purposes and restricted cash | 2,100 | |
Total debt securities | 1,219 | 568 |
Equity securities | 20 | 12 |
Brokered certificates of deposit | 30 | 16 |
Other | 1 | 14 |
Total trading assets | 1,270 | 610 |
Available-for-sale securities | 9,885 | 8,315 |
Amount of derivative assets offset | (348) | (87) |
Derivative assets | 188 | 255 |
Total all other investments | 197 | 188 |
Other assets - fractional shares | 78 | |
Netting adjustment | (348) | (87) |
Total assets at fair value on a recurring basis | 11,713 | 11,637 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 809 | 145 |
Equity securities | 27 | 31 |
Total trading liabilities | 836 | 176 |
Netting adjustment | (65) | (88) |
Net amounts presented on the Consolidated Statements of Financial Condition | 530 | 228 |
Other payables - fractional shares | 78 | |
Total liabilities at fair value on a recurring basis | 1,444 | 404 |
Recurring | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 5 | 2 |
Recurring | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 555 | 6 |
Recurring | Government and agency obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 249 | 137 |
Recurring | Municipal and provincial obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 269 | 155 |
Recurring | Corporate obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 595 | 79 |
Recurring | Government and agency obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 171 | 109 |
Total all other investments | 79 | 86 |
Recurring | Agency MBS, CMOs, and ABS | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 123 | 211 |
Recurring | Non-agency CMOs and ABS | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 61 | 14 |
Recurring | Assets at Fair Value on a Recurring Basis, Before Investments Measured at NAV | ||
Assets at fair value on a recurring basis: | ||
Total assets at fair value on a recurring basis | 11,623 | 11,543 |
Recurring | Other assets | ||
Assets at fair value on a recurring basis: | ||
Total all other investments | 118 | 102 |
Recurring | Level 1 | ||
Assets at fair value on a recurring basis: | ||
Assets segregated for regulatory purposes and restricted cash | 2,100 | |
Total debt securities | 102 | 31 |
Equity securities | 20 | 8 |
Brokered certificates of deposit | 0 | 0 |
Other | 0 | 0 |
Total trading assets | 122 | 39 |
Available-for-sale securities | 986 | 15 |
Derivative assets, gross | 42 | 16 |
Total all other investments | 171 | 163 |
Other assets - fractional shares | 78 | |
Total assets at fair value on a recurring basis | 1,399 | 2,333 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 254 | 139 |
Equity securities | 27 | 28 |
Total trading liabilities | 281 | 167 |
Derivative contracts liability, gross | 40 | 16 |
Other payables - fractional shares | 78 | |
Total liabilities at fair value on a recurring basis | 399 | 183 |
Recurring | Level 1 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 5 | 2 |
Recurring | Level 1 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Government and agency obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 249 | 137 |
Recurring | Level 1 | Municipal and provincial obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Corporate obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 16 | 16 |
Recurring | Level 1 | Government and agency obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 86 | 15 |
Total all other investments | 79 | 86 |
Recurring | Level 1 | Agency MBS, CMOs, and ABS | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Non-agency CMOs and ABS | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 1 | Other assets | ||
Assets at fair value on a recurring basis: | ||
Total all other investments | 92 | 77 |
Recurring | Level 2 | ||
Assets at fair value on a recurring basis: | ||
Assets segregated for regulatory purposes and restricted cash | 0 | |
Total debt securities | 1,117 | 537 |
Equity securities | 0 | 4 |
Brokered certificates of deposit | 30 | 16 |
Other | 0 | 0 |
Total trading assets | 1,147 | 557 |
Available-for-sale securities | 8,899 | 8,300 |
Derivative assets, gross | 494 | 326 |
Total all other investments | 2 | 2 |
Other assets - fractional shares | 0 | |
Total assets at fair value on a recurring basis | 10,542 | 9,185 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 555 | 6 |
Equity securities | 0 | 3 |
Total trading liabilities | 555 | 9 |
Derivative contracts liability, gross | 552 | 299 |
Other payables - fractional shares | 0 | |
Total liabilities at fair value on a recurring basis | 1,107 | 308 |
Recurring | Level 2 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 2 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 555 | 6 |
Recurring | Level 2 | Government and agency obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 2 | Municipal and provincial obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 269 | 155 |
Recurring | Level 2 | Corporate obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 579 | 63 |
Recurring | Level 2 | Government and agency obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 85 | 94 |
Total all other investments | 0 | 0 |
Recurring | Level 2 | Agency MBS, CMOs, and ABS | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 123 | 211 |
Recurring | Level 2 | Non-agency CMOs and ABS | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 61 | 14 |
Recurring | Level 2 | Other assets | ||
Assets at fair value on a recurring basis: | ||
Total all other investments | 2 | 2 |
Recurring | Level 3 | ||
Assets at fair value on a recurring basis: | ||
Assets segregated for regulatory purposes and restricted cash | 0 | |
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Brokered certificates of deposit | 0 | 0 |
Other | 1 | 14 |
Total trading assets | 1 | 14 |
Available-for-sale securities | 0 | 0 |
Derivative assets, gross | 0 | 0 |
Total all other investments | 24 | 23 |
Other assets - fractional shares | 0 | |
Total assets at fair value on a recurring basis | 30 | 112 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Total trading liabilities | 0 | 0 |
Derivative contracts liability, gross | 3 | 1 |
Other payables - fractional shares | 0 | |
Total liabilities at fair value on a recurring basis | 3 | 1 |
Recurring | Level 3 | Municipal and provincial obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Corporate obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Government and agency obligations | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Municipal and provincial obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Corporate obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Government and agency obligations | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Total all other investments | 0 | 0 |
Recurring | Level 3 | Agency MBS, CMOs, and ABS | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Non-agency CMOs and ABS | ||
Assets at fair value on a recurring basis: | ||
Total debt securities | 0 | 0 |
Recurring | Level 3 | Other assets | ||
Assets at fair value on a recurring basis: | ||
Total all other investments | 24 | 23 |
Interest rate contracts | Recurring | ||
Assets at fair value on a recurring basis: | ||
Interest rate - matched book | 52 | 193 |
Amount of derivative assets offset | (348) | (87) |
Derivative assets | 126 | 57 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate - matched book | 52 | 193 |
Derivative liability, collateral, amount of offset | (65) | (88) |
Net amounts presented on the Consolidated Statements of Financial Condition | 470 | 34 |
Interest rate contracts | Recurring | Level 1 | ||
Assets at fair value on a recurring basis: | ||
Interest rate - matched book | 0 | 0 |
Derivative assets, gross | 42 | 16 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate - matched book | 0 | 0 |
Derivative liability | 40 | 16 |
Interest rate contracts | Recurring | Level 2 | ||
Assets at fair value on a recurring basis: | ||
Interest rate - matched book | 52 | 193 |
Derivative assets, gross | 432 | 128 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate - matched book | 52 | 193 |
Derivative liability | 495 | 106 |
Interest rate contracts | Recurring | Level 3 | ||
Assets at fair value on a recurring basis: | ||
Interest rate - matched book | 0 | 0 |
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate - matched book | 0 | 0 |
Derivative liability | 0 | 0 |
Foreign exchange | Recurring | ||
Assets at fair value on a recurring basis: | ||
Derivative assets | 10 | 5 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Net amounts presented on the Consolidated Statements of Financial Condition | 5 | |
Foreign exchange | Recurring | Level 1 | ||
Assets at fair value on a recurring basis: | ||
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | |
Foreign exchange | Recurring | Level 2 | ||
Assets at fair value on a recurring basis: | ||
Derivative assets, gross | 10 | 5 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 5 | |
Foreign exchange | Recurring | Level 3 | ||
Assets at fair value on a recurring basis: | ||
Derivative assets, gross | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | |
Other | Recurring | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Net amounts presented on the Consolidated Statements of Financial Condition | 3 | 1 |
Other | Recurring | Level 1 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | 0 |
Other | Recurring | Level 2 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | 0 |
Other | Recurring | Level 3 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 3 | 1 |
Other investments - private equity | Recurring | ||
Assets at fair value on a recurring basis: | ||
Other investments - private equity - not measured at NAV | 5 | 75 |
Other investments - private equity - measured at NAV | 90 | 94 |
Other investments - private equity | Recurring | Level 1 | ||
Assets at fair value on a recurring basis: | ||
Other investments - private equity - not measured at NAV | 0 | 0 |
Other investments - private equity | Recurring | Level 2 | ||
Assets at fair value on a recurring basis: | ||
Other investments - private equity - not measured at NAV | 0 | 0 |
Other investments - private equity | Recurring | Level 3 | ||
Assets at fair value on a recurring basis: | ||
Other investments - private equity - not measured at NAV | $ 5 | $ 75 |
FAIR VALUE, Level 3 Financial A
FAIR VALUE, Level 3 Financial Assets and Liabilities, Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Principal transactions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Location of gains (losses) included in earnings | Principal transactions | Principal transactions |
Revenue from contract with customer | Other revenues | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Location of gains (losses) included in earnings | Revenue from contract with customer | Revenue from contract with customer |
Derivative liabilities | Other | ||
Changes in Level 3 curring fair value measurements, liabilities [Roll Forward] | ||
Fair value beginning of year | $ (1) | $ (5) |
Total gains/(losses) included in earnings | (2) | 5 |
Purchases and contributions | 0 | 0 |
Sales, distributions, and deconsolidations | 0 | (1) |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | (3) | (1) |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | (2) | (1) |
Trading assets | Other | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 14 | 12 |
Total gains/(losses) included in earnings | 1 | (1) |
Purchases and contributions | 108 | 49 |
Sales, distributions, and deconsolidations | (122) | (46) |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 1 | 14 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | 0 | 0 |
Derivative assets | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 0 | 0 |
Total gains/(losses) included in earnings | 1 | |
Purchases and contributions | 0 | |
Sales, distributions, and deconsolidations | (1) | |
Transfers: | ||
Into Level 3 | 0 | |
Out of Level 3 | 0 | |
Fair value end of year | 0 | |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | 0 | |
Other investments | Other investments - private equity | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 75 | 37 |
Total gains/(losses) included in earnings | 12 | 37 |
Purchases and contributions | 0 | 1 |
Sales, distributions, and deconsolidations | (70) | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | (12) | 0 |
Fair value end of year | 5 | 75 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | 1 | 37 |
Other investments | All other | ||
Changes in Level 3 recurring fair value measurements, assets [Roll Forward] | ||
Fair value beginning of year | 23 | 22 |
Total gains/(losses) included in earnings | (3) | 1 |
Purchases and contributions | 7 | 0 |
Sales, distributions, and deconsolidations | (3) | 0 |
Transfers: | ||
Into Level 3 | 0 | 0 |
Out of Level 3 | 0 | 0 |
Fair value end of year | 24 | 23 |
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | $ 1 | $ 1 |
FAIR VALUE, Level 3 Financial_2
FAIR VALUE, Level 3 Financial Assets and Liabilities, Narrative (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Fair Value Disclosures [Abstract] | ||
Instruments measured at fair value, percentage of assets | 14% | 19% |
Instruments measured at fair value, percentage of liabilities | 2% | 1% |
Instruments measured at fair value, Level 3, percentage of assets (less than) | 1% | 1% |
FAIR VALUE, Investments in Priv
FAIR VALUE, Investments in Private Equity Measured at Net Asset Value Per Share (Details) - Other investments - private equity - Recurring - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV, recorded value | $ 90 | $ 94 |
Private equity investments not measured at NAV, recorded value | 5 | 75 |
Total private equity investments | 95 | 169 |
Parent | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Private equity investments measured at NAV, unfunded commitment | $ 39 | 24 |
Total private equity investments | 120 | |
Noncontrolling Interest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total private equity investments | $ 49 |
FAIR VALUE, Significant Assumpt
FAIR VALUE, Significant Assumptions Used in Valuation of Financial Instruments (Details) - Nonrecurring $ in Millions | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) |
Residential mortgage loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | $ 12 | $ 14 |
Residential mortgage loans | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | 2 | 3 |
Residential mortgage loans | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | $ 10 | $ 11 |
Residential mortgage loans | Level 3 | Minimum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, measurement input | 7 | 7 |
Residential mortgage loans | Level 3 | Maximum | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, measurement input | 12 | 12 |
Residential mortgage loans | Level 3 | Weighted Average | Prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, measurement input | 10.4 | 10.5 |
Corporate loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | $ 57 | $ 49 |
Corporate loans | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | 0 | 0 |
Corporate loans | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | $ 57 | $ 49 |
Corporate loans | Level 3 | Recovery rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, measurement input | 0.74 | |
Corporate loans | Level 3 | Minimum | Recovery rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, measurement input | 0.24 | |
Corporate loans | Level 3 | Maximum | Recovery rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, measurement input | 0.66 | |
Corporate loans | Level 3 | Weighted Average | Recovery rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, measurement input | 0.47 | |
Loans held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | $ 3 | $ 29 |
Loans held for sale | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | 3 | 29 |
Loans held for sale | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Bank loans, net | $ 0 | $ 0 |
FAIR VALUE, Carrying Amounts an
FAIR VALUE, Carrying Amounts and Estimated Fair Value of Financial Instruments not Recorded on Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
5.75% fixed-to-floating subordinated notes, due 2030 (including premium of $2 and $0, respectively) | ||
Financial liabilities: | ||
Interest rate | 5.75% | |
Carrying amount | ||
Financial assets: | ||
Bank loans, net | $ 43,167 | $ 24,902 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 999 | 878 |
Carrying amount | Other Borrowings | ||
Financial liabilities: | ||
Debt | 100 | |
Carrying amount | Senior Notes | ||
Financial liabilities: | ||
Debt | 2,038 | 2,037 |
Recurring | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 42,470 | 24,955 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 979 | 898 |
Recurring | Total estimated fair value | Other Borrowings | ||
Financial liabilities: | ||
Debt | 95 | |
Recurring | Total estimated fair value | Senior Notes | ||
Financial liabilities: | ||
Debt | 1,706 | 2,459 |
Recurring | Level 2 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 134 | 116 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 400 | 0 |
Recurring | Level 2 | Total estimated fair value | Other Borrowings | ||
Financial liabilities: | ||
Debt | 95 | |
Recurring | Level 2 | Total estimated fair value | Senior Notes | ||
Financial liabilities: | ||
Debt | 1,706 | 2,459 |
Recurring | Level 3 | Total estimated fair value | ||
Financial assets: | ||
Bank loans, net | 42,336 | 24,839 |
Financial liabilities: | ||
Bank deposits - certificates of deposit | 579 | 898 |
Recurring | Level 3 | Total estimated fair value | Other Borrowings | ||
Financial liabilities: | ||
Debt | 0 | |
Recurring | Level 3 | Total estimated fair value | Senior Notes | ||
Financial liabilities: | ||
Debt | $ 0 | $ 0 |
AVAILABLE-FOR-SALE SECURITIES,
AVAILABLE-FOR-SALE SECURITIES, Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of Available for Sale Securities [Abstract] | ||
Fair value | $ 9,885 | $ 8,315 |
Bank | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 11,100 | 8,322 |
Gross unrealized gains | 0 | 62 |
Gross unrealized losses | (1,215) | (69) |
Fair value | 9,885 | 8,315 |
Bank | Agency residential MBS | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 5,662 | 5,168 |
Gross unrealized gains | 0 | 46 |
Gross unrealized losses | (668) | (25) |
Fair value | 4,994 | 5,189 |
Bank | Agency commercial MBS | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 1,518 | 1,285 |
Gross unrealized gains | 0 | 7 |
Gross unrealized losses | (208) | (28) |
Fair value | 1,310 | 1,264 |
Bank | Agency CMOs | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 1,637 | 1,854 |
Gross unrealized gains | 0 | 9 |
Gross unrealized losses | (233) | (16) |
Fair value | 1,404 | 1,847 |
Bank | Other agency obligations | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 613 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (31) | |
Fair value | 582 | |
Bank | Non-agency residential MBS | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 492 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (41) | |
Fair value | 451 | |
Bank | U.S. Treasuries | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 1,014 | 15 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (28) | 0 |
Fair value | 986 | $ 15 |
Bank | Corporate bonds | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 146 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (5) | |
Fair value | 141 | |
Bank | Other | ||
Schedule of Available for Sale Securities [Abstract] | ||
Cost basis | 18 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (1) | |
Fair value | $ 17 |
AVAILABLE-FOR-SALE SECURITIES_2
AVAILABLE-FOR-SALE SECURITIES, Narrative (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 USD ($) investmentPosition | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Accrued interest on available-for-sale securities, location | Other Receivables | Other Receivables | |
Fair value | $ 9,885 | $ 8,315 | |
Proceeds from sales of available-for-sale securities | 52 | 969 | $ 222 |
Bank | |||
Debt Securities, Available-for-sale [Line Items] | |||
Accrued interest on available-for-sale securities | $ 24 | 14 | |
Average expected duration, available for sale securities | 4 years 7 months 24 days | ||
Amortized cost basis | $ 11,100 | 8,322 | |
Fair value | $ 9,885 | 8,315 | |
Bank | Agency MBS, CMOs, and ABS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of available-for-sale investment positions determined to be in an unrealized loss position | investmentPosition | 1,071 | ||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for less than 12 months | investmentPosition | 734 | ||
Number of available-for-sale investment positions determined to be in an unrealized loss position continuously for 12 months or more | investmentPosition | 337 | ||
Proceeds from sales of available-for-sale securities | $ 52 | $ 969 | $ 222 |
Bank | Federal National Mortgage Association (FNMA) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost basis | 5,420 | ||
Fair value | 4,740 | ||
Bank | Federal Home Loan Mortgage Corporation (FHLMC) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost basis | 3,210 | ||
Fair value | $ 2,800 |
AVAILABLE-FOR-SALE SECURITIES_3
AVAILABLE-FOR-SALE SECURITIES, Contractual Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Carrying value | ||
Total | $ 9,885 | $ 8,315 |
Bank | ||
Amortized cost | ||
Within one year | 21 | |
After one but within five years | 2,454 | |
After five but within ten years | 3,441 | |
After ten years | 5,184 | |
Cost basis | 11,100 | 8,322 |
Carrying value | ||
Within one year | 21 | |
After one but within five years | 2,324 | |
After five but within ten years | 3,026 | |
After ten years | 4,514 | |
Total | $ 9,885 | 8,315 |
Weighted-average yield | ||
Within one year | 1.91% | |
After one but within five years | 2.31% | |
After five but within ten years | 1.39% | |
After ten years | 1.91% | |
Total | 1.84% | |
Bank | Agency residential MBS | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 147 | |
After five but within ten years | 2,516 | |
After ten years | 2,999 | |
Cost basis | 5,662 | 5,168 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 140 | |
After five but within ten years | 2,242 | |
After ten years | 2,612 | |
Total | $ 4,994 | 5,189 |
Weighted-average yield | ||
Within one year | 0% | |
After one but within five years | 2.45% | |
After five but within ten years | 1.25% | |
After ten years | 1.76% | |
Total | 1.55% | |
Bank | Agency commercial MBS | ||
Amortized cost | ||
Within one year | $ 15 | |
After one but within five years | 714 | |
After five but within ten years | 716 | |
After ten years | 73 | |
Cost basis | 1,518 | 1,285 |
Carrying value | ||
Within one year | 15 | |
After one but within five years | 644 | |
After five but within ten years | 588 | |
After ten years | 63 | |
Total | $ 1,310 | 1,264 |
Weighted-average yield | ||
Within one year | 1.91% | |
After one but within five years | 1.70% | |
After five but within ten years | 1.22% | |
After ten years | 1.69% | |
Total | 1.47% | |
Bank | Agency CMOs | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 12 | |
After five but within ten years | 30 | |
After ten years | 1,595 | |
Cost basis | 1,637 | 1,854 |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 12 | |
After five but within ten years | 27 | |
After ten years | 1,365 | |
Total | $ 1,404 | 1,847 |
Weighted-average yield | ||
Within one year | 0% | |
After one but within five years | 2.08% | |
After five but within ten years | 1.54% | |
After ten years | 1.48% | |
Total | 1.49% | |
Bank | Other agency obligations | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 487 | |
After five but within ten years | 114 | |
After ten years | 12 | |
Cost basis | 613 | |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 464 | |
After five but within ten years | 107 | |
After ten years | 11 | |
Total | $ 582 | |
Weighted-average yield | ||
Within one year | 0% | |
After one but within five years | 2.16% | |
After five but within ten years | 3.55% | |
After ten years | 2.99% | |
Total | 2.43% | |
Bank | Non-agency residential MBS | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 0 | |
After five but within ten years | 0 | |
After ten years | 492 | |
Cost basis | 492 | |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 0 | |
After five but within ten years | 0 | |
After ten years | 451 | |
Total | $ 451 | |
Weighted-average yield | ||
Within one year | 0% | |
After one but within five years | 0% | |
After five but within ten years | 0% | |
After ten years | 4.13% | |
Total | 4.13% | |
Bank | U.S. Treasuries | ||
Amortized cost | ||
Within one year | $ 6 | |
After one but within five years | 1,006 | |
After five but within ten years | 2 | |
After ten years | 0 | |
Cost basis | 1,014 | 15 |
Carrying value | ||
Within one year | 6 | |
After one but within five years | 978 | |
After five but within ten years | 2 | |
After ten years | 0 | |
Total | $ 986 | $ 15 |
Weighted-average yield | ||
Within one year | 1.91% | |
After one but within five years | 2.64% | |
After five but within ten years | 1.30% | |
After ten years | 0% | |
Total | 2.63% | |
Bank | Corporate bonds | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 83 | |
After five but within ten years | 63 | |
After ten years | 0 | |
Cost basis | 146 | |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 81 | |
After five but within ten years | 60 | |
After ten years | 0 | |
Total | $ 141 | |
Weighted-average yield | ||
Within one year | 0% | |
After one but within five years | 4.12% | |
After five but within ten years | 4.91% | |
After ten years | 0% | |
Total | 4.46% | |
Bank | Other | ||
Amortized cost | ||
Within one year | $ 0 | |
After one but within five years | 5 | |
After five but within ten years | 0 | |
After ten years | 13 | |
Cost basis | 18 | |
Carrying value | ||
Within one year | 0 | |
After one but within five years | 5 | |
After five but within ten years | 0 | |
After ten years | 12 | |
Total | $ 17 | |
Weighted-average yield | ||
Within one year | 0% | |
After one but within five years | 4.19% | |
After five but within ten years | 0% | |
After ten years | 5.33% | |
Total | 4.95% |
AVAILABLE-FOR-SALE SECURITIES_4
AVAILABLE-FOR-SALE SECURITIES, Gross Unrealized Losses and Fair Value and Significant Assumptions (Details) - Bank - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | $ 5,156 | $ 4,721 |
Unrealized losses less than 12 months | (405) | (50) |
Estimated fair value 12 months or more | 4,716 | 602 |
Unrealized losses 12 months or more | (810) | (19) |
Estimated fair value | 9,872 | 5,323 |
Unrealized losses | (1,215) | (69) |
Agency residential MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | 2,165 | 3,155 |
Unrealized losses less than 12 months | (226) | (25) |
Estimated fair value 12 months or more | 2,829 | 18 |
Unrealized losses 12 months or more | (442) | 0 |
Estimated fair value | 4,994 | 3,173 |
Unrealized losses | (668) | (25) |
Agency commercial MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | 494 | 645 |
Unrealized losses less than 12 months | (41) | (13) |
Estimated fair value 12 months or more | 816 | 353 |
Unrealized losses 12 months or more | (167) | (15) |
Estimated fair value | 1,310 | 998 |
Unrealized losses | (208) | (28) |
Agency CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | 337 | 918 |
Unrealized losses less than 12 months | (32) | (12) |
Estimated fair value 12 months or more | 1,067 | 231 |
Unrealized losses 12 months or more | (201) | (4) |
Estimated fair value | 1,404 | 1,149 |
Unrealized losses | (233) | (16) |
Other agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | 582 | |
Unrealized losses less than 12 months | (31) | |
Estimated fair value 12 months or more | 0 | |
Unrealized losses 12 months or more | 0 | |
Estimated fair value | 582 | |
Unrealized losses | (31) | |
Non-agency residential MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | 451 | |
Unrealized losses less than 12 months | (41) | |
Estimated fair value 12 months or more | 0 | |
Unrealized losses 12 months or more | 0 | |
Estimated fair value | 451 | |
Unrealized losses | (41) | |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | 982 | 3 |
Unrealized losses less than 12 months | (28) | 0 |
Estimated fair value 12 months or more | 4 | 0 |
Unrealized losses 12 months or more | 0 | 0 |
Estimated fair value | 986 | 3 |
Unrealized losses | (28) | $ 0 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | 128 | |
Unrealized losses less than 12 months | (5) | |
Estimated fair value 12 months or more | 0 | |
Unrealized losses 12 months or more | 0 | |
Estimated fair value | 128 | |
Unrealized losses | (5) | |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated fair value less than 12 months | 17 | |
Unrealized losses less than 12 months | (1) | |
Estimated fair value 12 months or more | 0 | |
Unrealized losses 12 months or more | 0 | |
Estimated fair value | 17 | |
Unrealized losses | $ (1) |
DERIVATIVE ASSETS AND DERIVAT_3
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Asset and Liability Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Derivative assets | ||
Derivative assets | $ 536 | $ 342 |
Counterparty netting | (35) | (46) |
Cash collateral netting | (313) | (41) |
Total amounts offset | (348) | (87) |
Net amounts presented on the Consolidated Statements of Financial Condition | 188 | 255 |
Financial instruments | (60) | (205) |
Net amount | 128 | 50 |
Derivative liabilities | ||
Derivative liabilities | 595 | 316 |
Counterparty netting | (35) | (46) |
Cash collateral netting | (30) | (42) |
Total amounts offset | (65) | (88) |
Net amounts presented on the Consolidated Statements of Financial Condition | 530 | 228 |
Financial instruments | (52) | (193) |
Net amount | 478 | 35 |
Notional amount | 19,618 | 19,989 |
Derivatives not designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 518 | 340 |
Derivative liabilities | ||
Derivative liabilities | 595 | 316 |
Notional amount | 17,476 | 18,200 |
Derivatives not designated as hedging instruments | Interest rate - matched book | ||
Derivative assets | ||
Interest rate - matched book | 52 | 193 |
Derivative liabilities | ||
Interest rate - matched book | 52 | 193 |
Notional amount | 1,340 | 1,736 |
Derivatives not designated as hedging instruments | Interest rate - other | ||
Derivative assets | ||
Derivative assets | 462 | 144 |
Derivative liabilities | ||
Derivative liabilities | 535 | 122 |
Notional amount | 14,647 | 15,087 |
Derivatives not designated as hedging instruments | Foreign exchange | ||
Derivative assets | ||
Derivative assets | 4 | 3 |
Derivative liabilities | ||
Derivative liabilities | 5 | 0 |
Notional amount | 958 | 826 |
Derivatives not designated as hedging instruments | Other | ||
Derivative assets | ||
Derivative assets | 0 | 0 |
Derivative liabilities | ||
Derivative liabilities | 3 | 1 |
Notional amount | 531 | 551 |
Derivatives designated as hedging instruments | ||
Derivative assets | ||
Derivative assets | 18 | 2 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Notional amount | 2,142 | 1,789 |
Derivatives designated as hedging instruments | Interest rate - other | ||
Derivative assets | ||
Derivative assets | 12 | 0 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Notional amount | 1,050 | 850 |
Derivatives designated as hedging instruments | Foreign exchange | ||
Derivative assets | ||
Derivative assets | 6 | 2 |
Derivative liabilities | ||
Derivative liabilities | 0 | 0 |
Notional amount | $ 1,092 | $ 939 |
DERIVATIVE ASSETS AND DERIVAT_4
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Derivative Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate (cash flow hedges) | $ 70 | $ 26 | $ (34) |
Total gains/(losses) included in AOCI, net of taxes | 142 | (8) | (29) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate (cash flow hedges) | 70 | 26 | (34) |
Foreign exchange | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange (net investment hedges) | $ 72 | $ (34) | $ 5 |
DERIVATIVE ASSETS AND DERIVAT_5
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Narrative (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | ||||
Gain (loss) excluded from assessment of hedge effectiveness | $ 0 | $ 0 | $ 0 | |
Interest expense | 305,000,000 | 150,000,000 | $ 178,000,000 | |
Derivative liabilities | 530,000,000 | 228,000,000 | ||
Credit risk contract | ||||
Derivative [Line Items] | ||||
Derivative liabilities | $ 8,000,000 | $ 0 | ||
Forecast | Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative [Line Items] | ||||
Interest expense | $ 25,000,000 | |||
Bank | ||||
Derivative [Line Items] | ||||
Maximum length of time hedged in cash flow hedge | 5 years |
DERIVATIVE ASSETS AND DERIVAT_6
DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES, Income Statement Location (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest rate | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives | $ 22 | $ 13 | $ 7 |
Interest rate | Principal transactions | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives, location | Principal transactions | Principal transactions | Principal transactions |
Interest rate | Revenue from contract with customer | Other revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives, location | Revenue from contract with customer | Revenue from contract with customer | Revenue from contract with customer |
Foreign exchange | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives | $ 102 | $ (21) | $ 0 |
Gain (loss) on derivatives, location | Revenue from contract with customer | Revenue from contract with customer | Revenue from contract with customer |
Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivatives | $ (1) | $ 4 | $ (5) |
Gain (loss) on derivatives, location | Principal transactions | Principal transactions | Principal transactions |
COLLATERALIZED AGREEMENTS AND_3
COLLATERALIZED AGREEMENTS AND FINANCINGS, Schedule of Offsetting Transactions (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Reverse repurchase agreements | ||
Gross amounts of recognized assets/liabilities | $ 367 | $ 279 |
Gross amounts offset on the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts included in the Consolidated Statements of Financial Condition | 367 | 279 |
Gross amounts not offset on the Consolidated Statements of Financial Condition | (367) | (279) |
Net amounts | 0 | 0 |
Securities borrowed | ||
Gross amounts of recognized assets/liabilities | 337 | 201 |
Gross amounts offset on the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts included in the Consolidated Statements of Financial Condition | 337 | 201 |
Gross amounts not offset on the Consolidated Statements of Financial Condition | (327) | (195) |
Net amounts | 10 | 6 |
Assets, Total | ||
Gross amounts of recognized assets/liabilities | 704 | 480 |
Gross amounts offset on the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts included in the Consolidated Statements of Financial Condition | 704 | 480 |
Gross amounts not offset on the Consolidated Statements of Financial Condition | (694) | (474) |
Net amounts | 10 | 6 |
Repurchase agreements | ||
Gross amounts of recognized assets/liabilities | 294 | 205 |
Gross amounts offset on the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts included in the Consolidated Statements of Financial Condition | 294 | 205 |
Gross amounts not offset on the Consolidated Statements of Financial Condition | (294) | (205) |
Net amounts | 0 | 0 |
Securities loaned | ||
Gross amounts of recognized assets/liabilities | 172 | 72 |
Gross amounts offset on the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts included in the Consolidated Statements of Financial Condition | 172 | 72 |
Gross amounts not offset on the Consolidated Statements of Financial Condition | (162) | (68) |
Net amounts | 10 | 4 |
Liabilities, Total | ||
Gross amounts of recognized assets/liabilities | 466 | 277 |
Gross amounts offset on the Consolidated Statements of Financial Condition | 0 | 0 |
Net amounts included in the Consolidated Statements of Financial Condition | 466 | 277 |
Gross amounts not offset on the Consolidated Statements of Financial Condition | (456) | (273) |
Net amounts | $ 10 | $ 4 |
COLLATERALIZED AGREEMENTS AND_4
COLLATERALIZED AGREEMENTS AND FINANCINGS, Repurchase Agreements, Securities Lending Transactions & Repurchase-to-Maturity Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 294 | $ 205 |
Total collateralized financings | 466 | 277 |
Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 183 | 122 |
Agency MBS, CMOs, and ABS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 111 | 83 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 172 | 72 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 294 | 205 |
Total collateralized financings | 466 | 277 |
Overnight and continuous | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 183 | 122 |
Overnight and continuous | Agency MBS, CMOs, and ABS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 111 | 83 |
Overnight and continuous | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 172 | 72 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Total collateralized financings | 0 | 0 |
Up to 30 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Up to 30 days | Agency MBS, CMOs, and ABS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Up to 30 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
30-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Total collateralized financings | 0 | 0 |
30-90 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
30-90 days | Agency MBS, CMOs, and ABS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
30-90 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Total collateralized financings | 0 | 0 |
Greater than 90 days | Government and agency obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Agency MBS, CMOs, and ABS | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | $ 0 | $ 0 |
COLLATERALIZED AGREEMENTS AND_5
COLLATERALIZED AGREEMENTS AND FINANCINGS, Collateral (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Collateral Received that Can be Resold or Repledged [Abstract] | ||
Collateral we received that was available to be delivered or repledged | $ 3,812 | $ 3,429 |
Collateral that we delivered or repledged | $ 947 | $ 830 |
COLLATERALIZED AGREEMENTS AND_6
COLLATERALIZED AGREEMENTS AND FINANCINGS, Encumbered Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Bank loans, net pledged at the FHLB and the Federal Reserve Bank of Atlanta | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial instruments, owned, at fair value | $ 8,800 | $ 5,716 |
Had the right to deliver or repledge | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial instruments, owned, at fair value | 1,276 | 368 |
Did not have the right to deliver or repledge | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial instruments, owned, at fair value | $ 63 | $ 65 |
BANK LOANS, NET, Held for Sale
BANK LOANS, NET, Held for Sale and Held for Investment (Details) $ in Millions | Sep. 30, 2022 USD ($) portfolio_segment | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) |
Receivables [Abstract] | ||||
Number of loan portfolio segments | portfolio_segment | 6 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | $ 43,635 | $ 25,314 | ||
Allowance for loan losses | (396) | (320) | ||
Bank loans, net | $ 43,239 | $ 24,994 | ||
ACL as a % of total loans held for investment | 0.91% | 1.27% | ||
Accrued interest receivable on bank loans, location | Other Receivables | Other Receivables | ||
Accrued interest receivable on bank loans (included in “Other receivables, net”) | $ 137 | $ 48 | ||
Unamortized discounts, unearned income, and deferred loan fees and costs | (112) | 1 | ||
Total loans held for investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 43,498 | 25,169 | ||
Allowance for loan losses | (396) | (320) | $ (354) | $ (218) |
Held for sale loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 137 | 145 | ||
SBL | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 15,297 | 6,106 | ||
SBL | Total loans held for investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 15,297 | 6,106 | ||
Allowance for loan losses | (3) | (4) | (5) | (5) |
C&I loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 11,173 | 8,440 | ||
C&I loans | Total loans held for investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 11,173 | 8,440 | ||
Allowance for loan losses | (226) | (191) | (200) | (139) |
C&I loans | Total loans held for investment | Asset pledged as collateral | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Bank loans, net | 791 | |||
CRE loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 6,549 | 2,872 | ||
CRE loans | Total loans held for investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 6,549 | 2,872 | ||
Allowance for loan losses | (87) | (66) | (81) | (34) |
CRE loans | Total loans held for investment | Asset pledged as collateral | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Bank loans, net | 1,430 | |||
REIT loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 1,592 | 1,112 | ||
REIT loans | Total loans held for investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 1,592 | 1,112 | ||
Allowance for loan losses | (21) | (22) | (36) | (15) |
Tax-exempt loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 1,501 | 1,321 | ||
Tax-exempt loans | Total loans held for investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 1,501 | 1,321 | ||
Allowance for loan losses | (2) | (2) | (14) | (9) |
Residential mortgage loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 7,386 | 5,318 | ||
Residential mortgage loans | Total loans held for investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment | 7,386 | 5,318 | ||
Allowance for loan losses | (57) | $ (35) | $ (18) | $ (16) |
Residential mortgage loans | Total loans held for investment | Asset pledged as collateral | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Bank loans, net | $ 6,580 |
BANK LOANS, NET, Originations,
BANK LOANS, NET, Originations, Purchases, and Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Held for sale loans | |||
Payments for Origination and Purchases of Loans Held-for-sale [Abstract] | |||
Loans held for sale purchased or originated | $ 3,380 | $ 2,150 | $ 1,790 |
Proceeds from Sale of Loans Held-for-sale [Abstract] | |||
Proceeds for sale of loans held for sale | 1,290 | 973 | 776 |
Guaranteed portions of SBA loans intended for resale | |||
Payments for Origination and Purchases of Loans Held-for-sale [Abstract] | |||
Loans held for sale purchased or originated | 2,090 | 1,190 | 1,030 |
Total loans held for investment | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 2,495 | 2,052 | 996 |
Sales | 148 | 297 | 627 |
Total loans held for investment | C&I loans | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 1,288 | 1,528 | 589 |
Sales | 147 | 297 | 598 |
Total loans held for investment | CRE loans | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 0 | 0 | 5 |
Sales | 0 | 0 | 27 |
Total loans held for investment | Residential mortgage loans | |||
Purchases and sales of loans held for investment by portfolio segment [Abstract] | |||
Purchases | 1,207 | 524 | 402 |
Sales | $ 1 | $ 0 | $ 2 |
BANK LOANS, NET, Analysis of Pa
BANK LOANS, NET, Analysis of Payment Status of Loans Held for Investment and Collateral Dependent Loans (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | $ 43,635 | $ 25,314 |
Performing nonaccrual loans | 63 | 61 |
SBL | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 15,297 | 6,106 |
C&I loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 11,173 | 8,440 |
TDRs | 11 | |
Impaired loans with allowance for loan losses, gross recorded investment | 11 | |
CRE loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 6,549 | 2,872 |
TDRs | 9 | 12 |
Impaired loans with allowance for loan losses, gross recorded investment | 21 | 20 |
REIT loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 1,592 | 1,112 |
Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 7,386 | 5,318 |
Impaired loans with allowance for loan losses, gross recorded investment | 6 | 5 |
Residential mortgage - first mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
TDRs | 10 | 13 |
Tax-exempt loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 1,501 | 1,321 |
Total loans held for investment | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 43,498 | 25,169 |
Nonaccrual with allowance | 44 | 41 |
Nonaccrual with no allowance | 30 | 33 |
Total loans held for investment | SBL | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 15,297 | 6,106 |
Nonaccrual with allowance | 0 | 0 |
Nonaccrual with no allowance | 0 | 0 |
Total loans held for investment | C&I loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 11,173 | 8,440 |
Nonaccrual with allowance | 32 | 39 |
Nonaccrual with no allowance | 0 | 0 |
Total loans held for investment | CRE loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 6,549 | 2,872 |
Nonaccrual with allowance | 12 | 0 |
Nonaccrual with no allowance | 16 | 20 |
Total loans held for investment | REIT loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 1,592 | 1,112 |
Nonaccrual with allowance | 0 | 0 |
Nonaccrual with no allowance | 0 | 0 |
Total loans held for investment | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 7,386 | 5,318 |
Nonaccrual with allowance | 0 | 2 |
Nonaccrual with no allowance | 14 | 13 |
Total loans held for investment | Tax-exempt loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 1,501 | 1,321 |
Nonaccrual with allowance | 0 | 0 |
Nonaccrual with no allowance | 0 | 0 |
Total loans held for investment | Total past due and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 4 | 2 |
Total loans held for investment | Total past due and accruing | SBL | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | Total past due and accruing | C&I loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | Total past due and accruing | CRE loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | Total past due and accruing | REIT loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | Total past due and accruing | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 4 | 2 |
Total loans held for investment | Total past due and accruing | Tax-exempt loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 30-89 days and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 4 | 2 |
Total loans held for investment | 30-89 days and accruing | SBL | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 30-89 days and accruing | C&I loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 30-89 days and accruing | CRE loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 30-89 days and accruing | REIT loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 30-89 days and accruing | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 4 | 2 |
Total loans held for investment | 30-89 days and accruing | Tax-exempt loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 90 days or more and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 90 days or more and accruing | SBL | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 90 days or more and accruing | C&I loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 90 days or more and accruing | CRE loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 90 days or more and accruing | REIT loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 90 days or more and accruing | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | 90 days or more and accruing | Tax-exempt loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 0 | 0 |
Total loans held for investment | Current and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 43,420 | 25,093 |
Total loans held for investment | Current and accruing | SBL | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 15,297 | 6,106 |
Total loans held for investment | Current and accruing | C&I loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 11,141 | 8,401 |
Total loans held for investment | Current and accruing | CRE loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 6,521 | 2,852 |
Total loans held for investment | Current and accruing | REIT loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 1,592 | 1,112 |
Total loans held for investment | Current and accruing | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 7,368 | 5,301 |
Total loans held for investment | Current and accruing | Tax-exempt loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | 1,501 | 1,321 |
One-to-four family residential mortgage loans | Total past due and accruing | Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans held for investment | $ 5 | $ 4 |
BANK LOANS, NET, Credit Quality
BANK LOANS, NET, Credit Quality of Held for Investment Loan Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held for investment | $ 43,635 | $ 25,314 |
SBL | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 14 | 3 |
Fiscal year before current fiscal year | 27 | 45 |
Fiscal year two years before current fiscal year | 72 | 12 |
Fiscal year three years before current fiscal year | 44 | 0 |
Fiscal year four years before current fiscal year | 36 | 0 |
Prior | 41 | 0 |
Revolving loans | 15,063 | 6,046 |
Total loans held for investment | 15,297 | 6,106 |
SBL | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 14 | 3 |
Fiscal year before current fiscal year | 27 | 45 |
Fiscal year two years before current fiscal year | 72 | 12 |
Fiscal year three years before current fiscal year | 44 | 0 |
Fiscal year four years before current fiscal year | 36 | 0 |
Prior | 41 | 0 |
Revolving loans | 15,063 | 6,046 |
Total loans held for investment | 15,297 | 6,106 |
SBL | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 0 | 0 |
SBL | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 0 | 0 |
SBL | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 0 | 0 |
C&I loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,022 | 999 |
Fiscal year before current fiscal year | 1,476 | 1,273 |
Fiscal year two years before current fiscal year | 1,364 | 1,260 |
Fiscal year three years before current fiscal year | 1,189 | 1,492 |
Fiscal year four years before current fiscal year | 1,434 | 961 |
Prior | 2,288 | 1,715 |
Revolving loans | 2,400 | 740 |
Total loans held for investment | 11,173 | 8,440 |
C&I loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,011 | 999 |
Fiscal year before current fiscal year | 1,448 | 1,273 |
Fiscal year two years before current fiscal year | 1,301 | 1,180 |
Fiscal year three years before current fiscal year | 1,124 | 1,408 |
Fiscal year four years before current fiscal year | 1,389 | 935 |
Prior | 2,200 | 1,633 |
Revolving loans | 2,380 | 739 |
Total loans held for investment | 10,853 | 8,167 |
C&I loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 10 | 0 |
Fiscal year before current fiscal year | 28 | 0 |
Fiscal year two years before current fiscal year | 3 | 41 |
Fiscal year three years before current fiscal year | 37 | 0 |
Fiscal year four years before current fiscal year | 0 | 26 |
Prior | 82 | 54 |
Revolving loans | 6 | 1 |
Total loans held for investment | 166 | 122 |
C&I loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 60 | 24 |
Fiscal year three years before current fiscal year | 28 | 84 |
Fiscal year four years before current fiscal year | 40 | 0 |
Prior | 6 | 28 |
Revolving loans | 14 | 0 |
Total loans held for investment | 149 | 136 |
C&I loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 15 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 5 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 5 | 15 |
CRE loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,916 | 533 |
Fiscal year before current fiscal year | 1,346 | 504 |
Fiscal year two years before current fiscal year | 906 | 532 |
Fiscal year three years before current fiscal year | 724 | 786 |
Fiscal year four years before current fiscal year | 898 | 231 |
Prior | 583 | 224 |
Revolving loans | 176 | 62 |
Total loans held for investment | 6,549 | 2,872 |
CRE loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,916 | 533 |
Fiscal year before current fiscal year | 1,345 | 459 |
Fiscal year two years before current fiscal year | 892 | 442 |
Fiscal year three years before current fiscal year | 707 | 652 |
Fiscal year four years before current fiscal year | 816 | 223 |
Prior | 551 | 174 |
Revolving loans | 176 | 62 |
Total loans held for investment | 6,403 | 2,545 |
CRE loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 1 | 45 |
Fiscal year two years before current fiscal year | 0 | 58 |
Fiscal year three years before current fiscal year | 0 | 36 |
Fiscal year four years before current fiscal year | 36 | 0 |
Prior | 2 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 39 | 139 |
CRE loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 14 | 32 |
Fiscal year three years before current fiscal year | 17 | 98 |
Fiscal year four years before current fiscal year | 46 | 8 |
Prior | 30 | 50 |
Revolving loans | 0 | 0 |
Total loans held for investment | 107 | 188 |
CRE loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 0 | 0 |
REIT loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 169 | 235 |
Fiscal year before current fiscal year | 230 | 95 |
Fiscal year two years before current fiscal year | 96 | 109 |
Fiscal year three years before current fiscal year | 53 | 71 |
Fiscal year four years before current fiscal year | 40 | 83 |
Prior | 222 | 273 |
Revolving loans | 782 | 246 |
Total loans held for investment | 1,592 | 1,112 |
REIT loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 169 | 235 |
Fiscal year before current fiscal year | 230 | 95 |
Fiscal year two years before current fiscal year | 96 | 75 |
Fiscal year three years before current fiscal year | 53 | 60 |
Fiscal year four years before current fiscal year | 40 | 46 |
Prior | 222 | 167 |
Revolving loans | 782 | 237 |
Total loans held for investment | 1,592 | 915 |
REIT loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 13 |
Fiscal year three years before current fiscal year | 0 | 11 |
Fiscal year four years before current fiscal year | 0 | 33 |
Prior | 0 | 106 |
Revolving loans | 0 | 6 |
Total loans held for investment | 0 | 169 |
REIT loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 21 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 4 |
Prior | 0 | 0 |
Revolving loans | 0 | 3 |
Total loans held for investment | 0 | 28 |
REIT loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 0 | 0 |
Residential mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,986 | 1,861 |
Fiscal year before current fiscal year | 1,705 | 1,266 |
Fiscal year two years before current fiscal year | 1,023 | 640 |
Fiscal year three years before current fiscal year | 479 | 387 |
Fiscal year four years before current fiscal year | 291 | 453 |
Prior | 867 | 691 |
Revolving loans | 35 | 20 |
Total loans held for investment | 7,386 | 5,318 |
Residential mortgage loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,984 | 1,861 |
Fiscal year before current fiscal year | 1,704 | 1,266 |
Fiscal year two years before current fiscal year | 1,023 | 640 |
Fiscal year three years before current fiscal year | 477 | 386 |
Fiscal year four years before current fiscal year | 290 | 451 |
Prior | 843 | 666 |
Revolving loans | 35 | 20 |
Total loans held for investment | 7,356 | 5,290 |
Residential mortgage loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1 | 0 |
Fiscal year before current fiscal year | 1 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 2 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 4 | 5 |
Revolving loans | 0 | 0 |
Total loans held for investment | 8 | 5 |
Residential mortgage loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 1 |
Fiscal year four years before current fiscal year | 1 | 2 |
Prior | 20 | 20 |
Revolving loans | 0 | 0 |
Total loans held for investment | 22 | 23 |
Residential mortgage loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 0 | 0 |
Tax-exempt loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 264 | 158 |
Fiscal year before current fiscal year | 169 | 57 |
Fiscal year two years before current fiscal year | 56 | 124 |
Fiscal year three years before current fiscal year | 115 | 204 |
Fiscal year four years before current fiscal year | 192 | 272 |
Prior | 705 | 506 |
Revolving loans | 0 | 0 |
Total loans held for investment | 1,501 | 1,321 |
Tax-exempt loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 264 | 158 |
Fiscal year before current fiscal year | 169 | 57 |
Fiscal year two years before current fiscal year | 56 | 124 |
Fiscal year three years before current fiscal year | 115 | 204 |
Fiscal year four years before current fiscal year | 192 | 272 |
Prior | 705 | 506 |
Revolving loans | 0 | 0 |
Total loans held for investment | 1,501 | 1,321 |
Tax-exempt loans | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 0 | 0 |
Tax-exempt loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | 0 | 0 |
Tax-exempt loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Fiscal year before current fiscal year | 0 | 0 |
Fiscal year two years before current fiscal year | 0 | 0 |
Fiscal year three years before current fiscal year | 0 | 0 |
Fiscal year four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total loans held for investment | $ 0 | $ 0 |
BANK LOANS, NET, Held for Inves
BANK LOANS, NET, Held for Investment Residential Mortgage Loan Portfolio by FICO Score and by LTV Ratio (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held for investment | $ 43,635 | $ 25,314 |
Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans held for investment | 43,498 | 25,169 |
Residential mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,986 | 1,861 |
Fiscal year before current fiscal year | 1,705 | 1,266 |
Fiscal year two years before current fiscal year | 1,023 | 640 |
Fiscal year three years before current fiscal year | 479 | 387 |
Fiscal year four years before current fiscal year | 291 | 453 |
Prior | 867 | 691 |
Revolving loans | 35 | 20 |
Total loans held for investment | 7,386 | 5,318 |
Residential mortgage loans | Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,986 | 1,861 |
Fiscal year before current fiscal year | 1,705 | 1,266 |
Fiscal year two years before current fiscal year | 1,023 | 640 |
Fiscal year three years before current fiscal year | 479 | 387 |
Fiscal year four years before current fiscal year | 291 | 453 |
Prior | 867 | 691 |
Revolving loans | 35 | 20 |
Total loans held for investment | 7,386 | 5,318 |
Below 80% | Residential mortgage loans | Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,287 | 1,451 |
Fiscal year before current fiscal year | 1,333 | 990 |
Fiscal year two years before current fiscal year | 797 | 480 |
Fiscal year three years before current fiscal year | 358 | 304 |
Fiscal year four years before current fiscal year | 226 | 378 |
Prior | 661 | 500 |
Revolving loans | 31 | 20 |
Total loans held for investment | 5,693 | 4,123 |
80%+ | Residential mortgage loans | Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 699 | 410 |
Fiscal year before current fiscal year | 372 | 276 |
Fiscal year two years before current fiscal year | 226 | 160 |
Fiscal year three years before current fiscal year | 121 | 83 |
Fiscal year four years before current fiscal year | 65 | 75 |
Prior | 206 | 191 |
Revolving loans | 4 | 0 |
Total loans held for investment | 1,693 | 1,195 |
Below 600 | Residential mortgage loans | Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1 | 3 |
Fiscal year before current fiscal year | 3 | 2 |
Fiscal year two years before current fiscal year | 2 | 4 |
Fiscal year three years before current fiscal year | 3 | 1 |
Fiscal year four years before current fiscal year | 1 | 46 |
Prior | 54 | 11 |
Revolving loans | 0 | 0 |
Total loans held for investment | 64 | 67 |
600 - 699 | Residential mortgage loans | Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 155 | 134 |
Fiscal year before current fiscal year | 112 | 114 |
Fiscal year two years before current fiscal year | 90 | 46 |
Fiscal year three years before current fiscal year | 32 | 32 |
Fiscal year four years before current fiscal year | 20 | 16 |
Prior | 68 | 73 |
Revolving loans | 4 | 1 |
Total loans held for investment | 481 | 416 |
700 - 799 | Residential mortgage loans | Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,403 | 1,420 |
Fiscal year before current fiscal year | 1,301 | 921 |
Fiscal year two years before current fiscal year | 744 | 483 |
Fiscal year three years before current fiscal year | 353 | 294 |
Fiscal year four years before current fiscal year | 219 | 252 |
Prior | 470 | 386 |
Revolving loans | 22 | 16 |
Total loans held for investment | 5,512 | 3,772 |
800 + | Residential mortgage loans | Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 424 | 303 |
Fiscal year before current fiscal year | 284 | 228 |
Fiscal year two years before current fiscal year | 184 | 107 |
Fiscal year three years before current fiscal year | 87 | 59 |
Fiscal year four years before current fiscal year | 48 | 138 |
Prior | 273 | 220 |
Revolving loans | 6 | 3 |
Total loans held for investment | 1,306 | 1,058 |
FICO score not available | Residential mortgage loans | Total loans held for investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 3 | 1 |
Fiscal year before current fiscal year | 5 | 1 |
Fiscal year two years before current fiscal year | 3 | 0 |
Fiscal year three years before current fiscal year | 4 | 1 |
Fiscal year four years before current fiscal year | 3 | 1 |
Prior | 2 | 1 |
Revolving loans | 3 | 0 |
Total loans held for investment | $ 23 | $ 5 |
BANK LOANS, NET, Allowance for
BANK LOANS, NET, Allowance for Loan Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | $ 320 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | 396 | $ 320 | |
Increase (decrease) in allowance for credit losses | 76 | ||
Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 320 | 354 | $ 218 |
Provision/(benefit) for credit losses | 100 | (32) | 233 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (32) | (14) | (100) |
Recoveries | 6 | 1 | 2 |
Net (charge-offs)/recoveries | (26) | (13) | (98) |
Foreign exchange translation adjustment | (1) | 2 | 1 |
Balance at end of period | $ 396 | $ 320 | $ 354 |
ACL by loan portfolio segment as a % of total ACL | 100% | 100% | 100% |
Unfunded lending commitments | |||
Net (charge-offs)/recoveries: | |||
Allowance, unfunded lending commitment | $ 19 | $ 13 | $ 12 |
Financial Asset Acquired with Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 3 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | 3 | ||
Financial Asset Acquired and No Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 26 | ||
Financial Asset Originated | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 74 | ||
Cumulative adjustments for changes in accounting principles | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 9 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | 9 | ||
SBL | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 4 | 5 | 5 |
Provision/(benefit) for credit losses | (1) | 1 | 0 |
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 | $ 4 | $ 5 |
ACL by loan portfolio segment as a % of total ACL | 0.80% | 1.30% | 1.40% |
SBL | Financial Asset Acquired with Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | $ 0 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ 0 | ||
SBL | Financial Asset Acquired and No Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 2 | ||
SBL | Financial Asset Originated | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | (3) | ||
SBL | Cumulative adjustments for changes in accounting principles | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | (2) | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ (2) | ||
C&I | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 191 | 200 | 139 |
Provision/(benefit) for credit losses | 62 | (25) | 157 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (28) | (4) | (96) |
Recoveries | 0 | 0 | 0 |
Net (charge-offs)/recoveries | (28) | (4) | (96) |
Foreign exchange translation adjustment | 0 | 1 | 0 |
Balance at end of period | $ 226 | $ 191 | $ 200 |
ACL by loan portfolio segment as a % of total ACL | 57% | 59.70% | 56.40% |
C&I | Financial Asset Acquired with Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | $ 1 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ 1 | ||
C&I | Financial Asset Acquired and No Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 5 | ||
C&I | Financial Asset Originated | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 57 | ||
C&I | Cumulative adjustments for changes in accounting principles | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 19 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ 19 | ||
CRE loans | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 66 | 81 | 34 |
Provision/(benefit) for credit losses | 19 | 5 | 48 |
Net (charge-offs)/recoveries: | |||
Charge-offs | (4) | (10) | (2) |
Recoveries | 5 | 0 | 0 |
Net (charge-offs)/recoveries | 1 | (10) | (2) |
Foreign exchange translation adjustment | (1) | 1 | 1 |
Balance at end of period | $ 87 | $ 66 | $ 81 |
ACL by loan portfolio segment as a % of total ACL | 22% | 20.60% | 22.90% |
CRE loans | Financial Asset Acquired with Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | $ 2 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ 2 | ||
CRE loans | Financial Asset Acquired and No Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 19 | ||
CRE loans | Financial Asset Originated | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 0 | ||
CRE loans | Cumulative adjustments for changes in accounting principles | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | (11) | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ (11) | ||
REIT loans | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 22 | 36 | 15 |
Provision/(benefit) for credit losses | (1) | (5) | 23 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | (2) |
Recoveries | 0 | 0 | 0 |
Net (charge-offs)/recoveries | 0 | 0 | (2) |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | $ 21 | $ 22 | $ 36 |
ACL by loan portfolio segment as a % of total ACL | 5.30% | 6.90% | 10.20% |
REIT loans | Financial Asset Acquired with Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | $ 0 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ 0 | ||
REIT loans | Financial Asset Acquired and No Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 0 | ||
REIT loans | Financial Asset Originated | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | (1) | ||
REIT loans | Cumulative adjustments for changes in accounting principles | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | (9) | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ (9) | ||
Residential mortgage loans | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 35 | 18 | 16 |
Provision/(benefit) for credit losses | 21 | (8) | 0 |
Net (charge-offs)/recoveries: | |||
Charge-offs | 0 | 0 | 0 |
Recoveries | 1 | 1 | 2 |
Net (charge-offs)/recoveries | 1 | 1 | 2 |
Foreign exchange translation adjustment | 0 | 0 | 0 |
Balance at end of period | $ 57 | $ 35 | $ 18 |
ACL by loan portfolio segment as a % of total ACL | 14.40% | 10.90% | 5.10% |
Residential mortgage loans | Financial Asset Acquired with Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | $ 0 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ 0 | ||
Residential mortgage loans | Financial Asset Acquired and No Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 0 | ||
Residential mortgage loans | Financial Asset Originated | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 21 | ||
Residential mortgage loans | Cumulative adjustments for changes in accounting principles | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 24 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ 24 | ||
Tax-exempt loans | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | 2 | 14 | 9 |
Provision/(benefit) for credit losses | 0 | 0 | 5 |
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 | $ 2 | $ 2 | $ 14 |
ACL by loan portfolio segment as a % of total ACL | 0.50% | 0.60% | 4% |
Tax-exempt loans | Financial Asset Acquired with Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | $ 0 | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ 0 | ||
Tax-exempt loans | Financial Asset Acquired and No Credit Deterioration | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | 0 | ||
Tax-exempt loans | Financial Asset Originated | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Provision/(benefit) for credit losses | $ 0 | ||
Tax-exempt loans | Cumulative adjustments for changes in accounting principles | Total loans held for investment | |||
Changes in the allowance for loan losses [Roll Forward] | |||
Balance at beginning of year | $ (12) | ||
Net (charge-offs)/recoveries: | |||
Balance at end of period | $ (12) |
LOANS TO FINANCIAL ADVISORS, _3
LOANS TO FINANCIAL ADVISORS, NET, Balance of Loans to Financial Advisors (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Affiliated with the firm as of year-end | $ 1,173 | $ 1,074 |
No longer affiliated with the firm as of year-end | 8 | 10 |
Total loans to financial advisors | 1,181 | 1,084 |
Allowance for credit losses | (29) | (27) |
Loans to financial advisors, net | 1,152 | 1,057 |
Accrued interest receivable on loans to financial advisors | $ 5 | $ 4 |
Allowance for credit loss as a percentage of loan portfolio | 2.46% | 2.49% |
Past due period | 180 days |
VARIABLE INTEREST ENTITIES, Pri
VARIABLE INTEREST ENTITIES, Primary Beneficiary - Aggregate Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | $ 80,951 | $ 61,891 |
Aggregate liabilities | 71,519 | 53,588 |
Variable Interest Entity, Primary Beneficiary | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 76 | 192 |
Aggregate liabilities | 23 | 71 |
Variable Interest Entity, Primary Beneficiary | LIHTC funds | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 59 | 111 |
Aggregate liabilities | 6 | 52 |
Variable Interest Entity, Primary Beneficiary | Private Equity Interests | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 66 | |
Aggregate liabilities | 4 | |
Variable Interest Entity, Primary Beneficiary | Restricted Stock Trust Fund | ||
Variable interest entity, consolidated, aggregate assets and liabilities [Abstract] | ||
Aggregate assets | 17 | 15 |
Aggregate liabilities | $ 17 | $ 15 |
VARIABLE INTEREST ENTITIES, P_2
VARIABLE INTEREST ENTITIES, Primary Beneficiary - Carrying Value of Assets, Liabilities and Equity (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Assets: | ||||
Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash | $ 14,659 | $ 16,449 | $ 9,634 | $ 5,971 |
Other assets | 2,452 | 2,257 | ||
Total assets | 80,951 | 61,891 | ||
Liabilities: | ||||
Other payables | 1,768 | 1,701 | ||
Total liabilities | 71,519 | 53,588 | ||
Noncontrolling interests | (26) | 58 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Assets: | ||||
Total assets | 76 | 192 | ||
Liabilities: | ||||
Total liabilities | 23 | 71 | ||
Variable Interest Entity, Primary Beneficiary | Carrying amount | ||||
Assets: | ||||
Cash and cash equivalents and assets segregated for regulatory purposes and restricted cash | 5 | 10 | ||
Other investments | 0 | 63 | ||
Other assets | 54 | 105 | ||
Total assets | 59 | 178 | ||
Liabilities: | ||||
Other payables | 0 | 45 | ||
Total liabilities | 0 | 45 | ||
Noncontrolling interests | $ (26) | $ 58 |
VARIABLE INTEREST ENTITIES, Not
VARIABLE INTEREST ENTITIES, Not the Primary Beneficiary - Aggregate Assets, Liabilities Exposure to Loss (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 80,951 | $ 61,891 |
Aggregate liabilities | 71,519 | 53,588 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 10,088 | 14,869 |
Aggregate liabilities | 3,133 | 2,482 |
Our risk of loss | 234 | 163 |
Variable Interest Entity, Not Primary Beneficiary | LIHTC funds | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 7,752 | 7,032 |
Aggregate liabilities | 2,584 | 2,280 |
Our risk of loss | 136 | 71 |
Variable Interest Entity, Not Primary Beneficiary | Private Equity Interests | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 2,177 | 7,318 |
Aggregate liabilities | 448 | 47 |
Our risk of loss | 90 | 82 |
Variable Interest Entity, Not Primary Beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 159 | 519 |
Aggregate liabilities | 101 | 155 |
Our risk of loss | $ 8 | $ 10 |
GOODWILL AND IDENTIFIABLE INT_3
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Schedule of Goodwill and Net Identifiable Intangible Asset Balances (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,422 | $ 660 | $ 466 |
Identifiable intangible assets, net | 509 | 222 | $ 134 |
Total goodwill and identifiable intangible assets, net | $ 1,931 | $ 882 |
GOODWILL AND IDENTIFIABLE INT_4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill as of beginning of year | $ 660 | $ 466 |
Additions | 795 | 193 |
Foreign currency translations | (33) | 1 |
Goodwill as of end of year | 1,422 | 660 |
Private Client Group | ||
Goodwill [Roll Forward] | ||
Goodwill as of beginning of year | 417 | 277 |
Additions | 164 | 139 |
Foreign currency translations | (31) | 1 |
Goodwill as of end of year | 550 | 417 |
Capital Markets | ||
Goodwill [Roll Forward] | ||
Goodwill as of beginning of year | 174 | 120 |
Additions | 102 | 54 |
Foreign currency translations | (2) | 0 |
Goodwill as of end of year | 274 | 174 |
Asset Management | ||
Goodwill [Roll Forward] | ||
Goodwill as of beginning of year | 69 | 69 |
Additions | 0 | 0 |
Foreign currency translations | 0 | 0 |
Goodwill as of end of year | 69 | 69 |
Bank | ||
Goodwill [Roll Forward] | ||
Goodwill as of beginning of year | 0 | 0 |
Additions | 529 | 0 |
Foreign currency translations | 0 | 0 |
Goodwill as of end of year | $ 529 | $ 0 |
GOODWILL AND IDENTIFIABLE INT_5
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Narrative (Details) | Jan. 01, 2022 USD ($) |
Indefinite-lived Intangible Assets [Line Items] | |
Goodwill and intangible asset impairment | $ 0 |
Customer relationships | |
Indefinite-lived Intangible Assets [Line Items] | |
Goodwill and intangible asset impairment | $ 0 |
GOODWILL AND IDENTIFIABLE INT_6
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Net Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Net identifiable intangible assets as of beginning of year | $ 222 | $ 134 |
Additions | 334 | 109 |
Amortization expense | (33) | (21) |
Foreign currency translations | (14) | |
Net identifiable intangible assets as of end of year | 509 | 222 |
Private Client Group | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Net identifiable intangible assets as of beginning of year | 120 | 31 |
Additions | 85 | 96 |
Amortization expense | (13) | (7) |
Foreign currency translations | (14) | |
Net identifiable intangible assets as of end of year | 178 | 120 |
Capital Markets | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Net identifiable intangible assets as of beginning of year | 17 | 13 |
Additions | 52 | 13 |
Amortization expense | (9) | (9) |
Foreign currency translations | 0 | |
Net identifiable intangible assets as of end of year | 60 | 17 |
Asset Management | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Net identifiable intangible assets as of beginning of year | 85 | 90 |
Additions | 61 | 0 |
Amortization expense | (7) | (5) |
Foreign currency translations | 0 | |
Net identifiable intangible assets as of end of year | 139 | 85 |
Bank | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Net identifiable intangible assets as of beginning of year | 0 | 0 |
Additions | 136 | 0 |
Amortization expense | (4) | 0 |
Foreign currency translations | 0 | |
Net identifiable intangible assets as of end of year | $ 132 | $ 0 |
GOODWILL AND IDENTIFIABLE INT_7
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Intangible Assets, by Type (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | $ 628 | $ 312 |
Accumulated amortization, finite-lived intangible assets | (119) | (90) |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 361 | 238 |
Accumulated amortization, finite-lived intangible assets | (103) | (79) |
Core deposit intangible | ||
Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 89 | 0 |
Accumulated amortization, finite-lived intangible assets | (3) | 0 |
Developed technology | ||
Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 58 | 3 |
Accumulated amortization, finite-lived intangible assets | (4) | (2) |
Trade names | ||
Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 57 | 12 |
Accumulated amortization, finite-lived intangible assets | (5) | (5) |
All other | ||
Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 6 | 7 |
Accumulated amortization, finite-lived intangible assets | (4) | (4) |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Gross carrying value, indefinite-lived assets | 57 | 52 |
Accumulated amortization, indefinite-lived assets | $ 0 | $ 0 |
GOODWILL AND IDENTIFIABLE INT_8
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET, Projected Amortization Expense (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 | $ 43 |
2024 | 42 |
2025 | 40 |
2026 | 38 |
2027 | 37 |
Thereafter | 252 |
Total future amortization expense | $ 452 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Prepaid Expense and Other Assets [Abstract] | ||
Investments in company-owned life insurance policies | $ 944 | $ 952 |
Property and equipment, net | 503 | 499 |
Lease ROU assets | 480 | 446 |
Prepaid expenses | 173 | 127 |
Investments in FHLB and FRB stock | 88 | 72 |
All other | 264 | 161 |
Total other assets | $ 2,452 | $ 2,257 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Gross carrying value | $ 1,458 | $ 1,353 | |
Accumulated depreciation/ software amortization | (955) | (854) | |
Property and equipment, net | 503 | 499 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Gross carrying value | 29 | 29 | |
Accumulated depreciation/ software amortization | 0 | 0 | |
Property and equipment, net | 29 | 29 | |
Software, including development in progress | |||
Property, Plant and Equipment [Line Items] | |||
Gross carrying value | 660 | 606 | |
Accumulated depreciation/ software amortization | (422) | (362) | |
Property and equipment, net | 238 | 244 | |
Amortization expense | 62 | 62 | $ 54 |
Buildings, building components, leasehold and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross carrying value | 413 | 397 | |
Accumulated depreciation/ software amortization | (239) | (225) | |
Property and equipment, net | 174 | 172 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross carrying value | 356 | 321 | |
Accumulated depreciation/ software amortization | (294) | (267) | |
Property and equipment, net | 62 | 54 | |
Property and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 50 | $ 51 | $ 52 |
LEASES, Narrative (Details)
LEASES, Narrative (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
Legally binding minimum lease payments | $ 66 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Contract term | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Contract term | 13 years |
LEASES, Operating Lease Assets
LEASES, Operating Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
ROU assets (included in Other assets) | $ 480 | $ 446 |
Lease liabilities (included in Other payables) | $ 482 | $ 450 |
Operating lease, right of use asset, statement of financial position, extensible list | Other assets | Other assets |
Operating lease, liability, statement of financial position, extensible list | Other Liabilities | Other Liabilities |
LEASES - Weighted Average Remai
LEASES - Weighted Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 6 years 9 months 18 days | 6 years 8 months 12 days |
Weighted-average discount rate | 3.95% | 3.45% |
LEASES, Lease Cost (Details)
LEASES, Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | |||
Lease costs | $ 118 | $ 110 | $ 98 |
Variable lease costs | $ 28 | $ 27 | $ 26 |
LEASES, Operating Lease Maturit
LEASES, Operating Lease Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
2023 | $ 117 | |
2024 | 97 | |
2025 | 76 | |
2026 | 62 | |
2027 | 47 | |
Thereafter | 160 | |
Gross lease payments | 559 | |
Less: interest | (77) | |
Present value of lease liabilities | $ 482 | $ 450 |
BANK DEPOSITS, Summary of Bank
BANK DEPOSITS, Summary of Bank Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Balance | ||
Money market and savings accounts | $ 44,446 | $ 31,415 |
Interest-bearing checking accounts | 5,286 | 164 |
Certificates of deposit | 999 | 878 |
Non-interest-bearing checking accounts | 626 | 38 |
Total bank deposits | $ 51,357 | $ 32,495 |
Weighted-average rate | ||
Money market and savings accounts | 1.01% | 0.01% |
Interest-bearing checking accounts | 2.77% | 1.84% |
Certificates of deposit | 1.85% | 1.87% |
Non-interest-bearing checking accounts | 0% | 0% |
Total bank deposits | 1.21% | 0.07% |
Related Party Transaction [Line Items] | ||
Time deposit amount that exceeds FDIC insurance limit | $ 7,840 | $ 3,080 |
Raymond James & Associates, Inc. | ||
Related Party Transaction [Line Items] | ||
Related party deposits | $ 38,710 | $ 31,410 |
BANK DEPOSITS, Schedule Maturit
BANK DEPOSITS, Schedule Maturities of Certificates of Deposit (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Contractual Maturities of Time Deposits, $100,000 or More, Disclosures [Abstract] | |
Three months or less | $ 45 |
Over three through six months | 14 |
Over six through twelve months | 9 |
Over twelve months | 9 |
Total estimated certificates of deposit that exceeded the FDIC insurance limit | $ 77 |
BANK DEPOSITS, Maturities by Fi
BANK DEPOSITS, Maturities by Fiscal Year of Certificates of Deposit (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 600 | |
2024 | 253 | |
2025 | 129 | |
2026 | 11 | |
2027 | 6 | |
Total certificates of deposit | $ 999 | $ 878 |
BANK DEPOSITS, Summary of Inter
BANK DEPOSITS, Summary of Interest Expense on Deposits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Deposits [Abstract] | |||
Money market and savings accounts | $ 78 | $ 3 | $ 19 |
Interest-bearing checking accounts | 38 | 3 | 2 |
Certificates of deposit | 15 | 17 | 20 |
Total interest expense on deposits | $ 131 | $ 23 | $ 41 |
OTHER BORROWINGS, Schedule of O
OTHER BORROWINGS, Schedule of Other Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Other Borrowings [Abstract] | ||
Total other borrowings | $ 1,291 | $ 858 |
Premium | 2 | 0 |
5.75% fixed-to-floating subordinated notes, due 2030 (including premium of $2 and $0, respectively) | ||
Other Borrowings [Abstract] | ||
5.75% fixed-to-floating subordinated notes, due 2030 (including premium of $2 and $0, respectively) | $ 100 | 0 |
Interest rate | 5.75% | |
Other | ||
Other Borrowings [Abstract] | ||
Other | $ 1 | 8 |
FHLB advances | ||
Other Borrowings [Abstract] | ||
FHLB advances | $ 1,190 | $ 850 |
OTHER BORROWINGS, FHLB Advances
OTHER BORROWINGS, FHLB Advances (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
FHLB advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Aggregate principal amount of the notes | $ 850,000,000 | |
Weighted Average | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB advances weighted average interest rate | 3.29% | 0.26% |
FHLB Advance Maturing December 2023 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB advances | $ 850,000,000 | |
FHLB Advance Maturing May 2023 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB advances | 140,000,000 | |
FHLB Advance Maturing December 2022 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB advances | $ 200,000,000 | |
FHLB advances weighted average interest rate | 3.45% |
OTHER BORROWINGS, Subordinated
OTHER BORROWINGS, Subordinated Notes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Jun. 01, 2022 | |
5.75% fixed-to-floating subordinated notes, due 2030 (including premium of $2 and $0, respectively) | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.75% | |
Redemption price percentage | 100% | |
TriState Capital | ||
Debt Instrument [Line Items] | ||
Long-term debt assumed | $ 11,700 | |
TriState Capital | 5.75% fixed-to-floating subordinated notes, due 2030 (including premium of $2 and $0, respectively) | ||
Debt Instrument [Line Items] | ||
Long-term debt assumed | $ 98 |
OTHER BORROWINGS, Other (Detail
OTHER BORROWINGS, Other (Details) - Revolving Credit Facility - The Credit Facility - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Feb. 19, 2019 | |
Debt Instrument [Line Items] | |||
Revolving credit agreement commitment fee percentage | 0.15% | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Revolving credit agreement maximum borrowing capacity | $ 500,000,000 | ||
Long-term line of credit | $ 0 | $ 0 | |
Line of Credit | Raymond James Financial Inc | |||
Debt Instrument [Line Items] | |||
Revolving credit agreement maximum borrowing capacity | $ 300,000,000 |
SENIOR NOTES PAYABLE, Schedule
SENIOR NOTES PAYABLE, Schedule of Senior Notes Payable (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | May 31, 2017 | Jul. 31, 2016 | Mar. 31, 2012 | |
Debt Instrument [Line Items] | ||||||||
Purchase/redemption price | $ 0 | $ 844,000,000 | $ 0 | |||||
Losses on extinguishment of debt | 0 | 98,000,000 | $ 0 | |||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 2,050,000,000 | 2,050,000,000 | ||||||
Unaccreted premiums/(discounts) | 5,000,000 | 5,000,000 | ||||||
Unamortized debt issuance costs | (17,000,000) | (18,000,000) | ||||||
Total senior notes payable | 2,038,000,000 | 2,037,000,000 | ||||||
Losses on extinguishment of debt | 98,000,000 | |||||||
Senior Notes | 4.65% senior notes, due 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 500,000,000 | 500,000,000 | ||||||
Aggregate principal amount of the notes | $ 500,000,000 | |||||||
Interest rate | 4.65% | |||||||
Percentage of principal amount of notes redeemed | 100% | |||||||
Basis spread used in determining redemption price | 0.50% | |||||||
Senior Notes | 4.95% senior notes, due 2046 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 800,000,000 | 800,000,000 | ||||||
Aggregate principal amount of the notes | $ 300,000,000 | $ 300,000,000 | ||||||
Interest rate | 4.95% | 4.95% | ||||||
Percentage of principal amount of notes redeemed | 100% | |||||||
Basis spread used in determining redemption price | 0.45% | |||||||
Senior Notes | 4.95% senior notes, due 2046 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of the notes | $ 500,000,000 | |||||||
Senior Notes | 3.75% senior notes, due 2051 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 750,000,000 | $ 750,000,000 | ||||||
Aggregate principal amount of the notes | $ 750,000,000 | |||||||
Interest rate | 3.75% | |||||||
Percentage of principal amount of notes redeemed | 100% | |||||||
Basis spread used in determining redemption price | 0.20% | |||||||
Senior Notes | 5.625% senior notes, due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.625% | |||||||
Purchase/redemption price | $ 250,000,000 | |||||||
Senior Notes | 3.625% senior notes, due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.625% | |||||||
Purchase/redemption price | $ 500,000,000 |
INCOME TAXES, Income Tax Alloca
INCOME TAXES, Income Tax Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Recorded in: | |||
Net income | $ 513 | $ 388 | $ 234 |
Equity, arising from available-for-sale securities recorded through OCI | (311) | (32) | 23 |
Equity, arising from currency translations, net of the impact of net investment hedges recorded through OCI | 23 | (10) | 2 |
Equity, arising from cash flow hedges recorded through OCI | 24 | 8 | (12) |
Total provision for income taxes | $ 249 | $ 354 | $ 247 |
INCOME TAXES, Provision (Benefi
INCOME TAXES, Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Current: | |||
Federal | $ 406 | $ 321 | $ 215 |
State and local | 91 | 79 | 49 |
Foreign | 32 | 25 | 9 |
Total current | 529 | 425 | 273 |
Deferred: | |||
Federal | (10) | (28) | (36) |
State and local | (3) | (6) | (3) |
Foreign | (3) | (3) | 0 |
Total deferred | (16) | (37) | (39) |
Total provision for income taxes | $ 513 | $ 388 | $ 234 |
INCOME TAXES, Effective Income
INCOME TAXES, Effective Income Tax Reconciliation (Details) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effective income tax rate reconciliation (as a percent): | |||
Provision calculated at statutory rate | 21% | 21% | 21% |
State income tax, net of federal benefit | 3.60% | 3.60% | 3.70% |
(Gains)/losses on company-owned life insurance policies which are not subject to tax | 1.80% | (1.80%) | (1.00%) |
Nondeductible compensation | 0.40% | 0.30% | 0.40% |
Change in uncertain tax positions | 0.30% | (0.10%) | 0.20% |
Foreign tax rate differential | 0.20% | 0.20% | 0.20% |
Tax credits | (1.20%) | (1.00%) | (1.60%) |
Excess tax benefits related to share-based compensation | (1.10%) | (0.20%) | (0.60%) |
Other, net | 0.40% | (0.30%) | (0.10%) |
Total provision for income tax | 25.40% | 21.70% | 22.20% |
INCOME TAXES, Components of Inc
INCOME TAXES, Components of Income Excluding Noncontrolling Interests Before Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
U.S. and foreign components of income before income taxes [Abstract] | |||
U.S. | $ 1,907 | $ 1,701 | $ 1,019 |
Foreign | 115 | 90 | 33 |
Pre-tax income | $ 2,022 | $ 1,791 | $ 1,052 |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Asset (Liability) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred tax assets: | ||
Unrealized loss associated with available-for-sale securities | $ 343 | $ 2 |
Deferred compensation | 272 | 287 |
Lease liabilities | 121 | 115 |
Allowances for credit losses | 106 | 81 |
Accrued expenses | 54 | 46 |
Unrealized loss associated with loan portfolios | 34 | 0 |
Unrealized loss associated with foreign currency translations | 27 | 3 |
Partnership investments | 2 | 9 |
Unrealized loss associated with cash flow hedges | 0 | 9 |
Other | 31 | 18 |
Total deferred tax assets | 990 | 570 |
Deferred tax liabilities: | ||
Goodwill and identifiable intangible assets | (126) | (64) |
Lease ROU assets | (118) | (114) |
Property and equipment | (110) | (85) |
Unrealized gain associated with cash flow hedges | (15) | 0 |
Other | (5) | (2) |
Total deferred tax liabilities | (374) | (265) |
Net deferred tax assets | 616 | 305 |
Deferred income tax assets, net | 630 | 305 |
Cumulative amount of undistributed earnings attributable to foreign subsidiaries | 431 | |
Income tax receivable current | 7 | 12 |
Accrued income taxes, current | 28 | 7 |
Other payables | ||
Deferred tax liabilities: | ||
Deferred income tax liabilities, net | $ (14) | $ 0 |
INCOME TAXES, Unrecognized Tax
INCOME TAXES, Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax penalties and interest accrued | $ 9 | $ 7 | |
Changes in the liability for unrecognized tax benefits [Roll Forward] | |||
Uncertain tax positions beginning of year | 36 | 45 | $ 42 |
Increases for tax positions related to the current year | 5 | 5 | 5 |
Increases for tax positions related to prior years | 10 | 2 | 3 |
Decreases for tax positions related to prior years | (1) | (7) | (1) |
Decreases due to lapsed statute of limitations | (7) | (5) | (4) |
Decreases related to settlements | 0 | (4) | 0 |
Uncertain tax positions end of year | 43 | 36 | 45 |
Unrecognized tax benefits that would impact effective tax rate | 38 | $ 31 | $ 40 |
Decrease in unrecognized tax benefits is reasonably possible | $ 11 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Commitments Narrative (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) agreement | |
Underwriting commitment | |
Commitments [Line Items] | |
Number of open underwriting commitments | agreement | 2 |
Various Investment Commitment | |
Commitments [Line Items] | |
Amount of commitment | $ 51 |
Commitment to lend to RJTCF | |
Commitments [Line Items] | |
Amount of commitment | $ 53 |
Number of days that investments in project partnerships are typically sold (in days) | 90 days |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Summary of Off-Balance Sheet Risks (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
SBL and other consumer lines of credit | $ 33,641 | $ 17,515 |
Commercial lines of credit | 3,792 | 2,075 |
Unfunded lending commitments | 1,255 | 548 |
Standby letters of credit | $ 94 | $ 22 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Guarantees (Details) | Sep. 30, 2022 USD ($) |
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 |
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 |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND GUARANTEES, Legal and Regulatory Matter Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Forecast | ||
Loss Contingencies [Line Items] | ||
Proceeds from insurance settlement | $ 32 | |
Pending Litigation | Various Lawsuits | ||
Loss Contingencies [Line Items] | ||
Estimate range of possible loss, portion not accrued | $ 90 |
SHAREHOLDERS' EQUITY, Narrative
SHAREHOLDERS' EQUITY, Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | ||||||
Jun. 01, 2022 USD ($) $ / shares shares | Aug. 24, 2021 | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Feb. 28, 2022 $ / shares shares | Dec. 31, 2021 USD ($) shares | Sep. 21, 2021 | |
Class of Stock [Line Items] | |||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.10 | ||||||
Preferred stock, value issued | $ | $ 0 | $ 120 | |||||
Share repurchases, authorized amount | $ | $ 1,000 | ||||||
Shares repurchased (in shares) | 1,740,000 | ||||||
Shares repurchased | $ | $ 162 | ||||||
Shares repurchased (in usd per share) | $ / shares | $ 94 | ||||||
Share repurchases, remaining authorized amount | $ | $ 838 | ||||||
Stock split ratio | 1.5 | 1.5 | |||||
Stock dividend percentage | 50% | ||||||
Capital stock, shares authorized (in shares) | 660,000,000 | 360,000,000 | |||||
Common stock, authorized (in shares) | 350,000,000 | 650,000,000 | 650,000,000 | ||||
Common stock, par value per share (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred stock, authorized (in shares) | 10,000,000 | ||||||
TriState Capital | |||||||
Class of Stock [Line Items] | |||||||
Shares issued (in shares) | 7,970,000 | ||||||
Restricted stock awards (in shares) | 551,000 | ||||||
Depositary Shares, Series A | |||||||
Class of Stock [Line Items] | |||||||
Issuance of shares (in shares) | 1,610,000 | ||||||
Depositary shares ratio | 0.025 | ||||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock percentage | 6.75% | ||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.10 | ||||||
Preferred stock, liquidation preference (in usd per share) | $ / shares | 1,000 | ||||||
Depositary shares, liquidation preference (in usd per share) | $ / shares | $ 25 | ||||||
Preferred stock, issued (in shares) | 40,250 | ||||||
Preferred stock, outstanding (in shares) | 40,250 | ||||||
Preferred stock, value issued | $ | $ 41 | ||||||
Preferred stock, aggregate liquidation preference | $ | $ 40 | ||||||
Series A Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||
Class of Stock [Line Items] | |||||||
Spread on variable rate | 3.985% | ||||||
Depositary Shares, Series B | |||||||
Class of Stock [Line Items] | |||||||
Issuance of shares (in shares) | 3,220,000 | ||||||
Depositary shares ratio | 0.025 | ||||||
Series B Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock percentage | 6.375% | ||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.10 | ||||||
Preferred stock, liquidation preference (in usd per share) | $ / shares | 1,000 | ||||||
Depositary shares, liquidation preference (in usd per share) | $ / shares | $ 25 | ||||||
Preferred stock, issued (in shares) | 80,500 | ||||||
Preferred stock, outstanding (in shares) | 80,500 | ||||||
Preferred stock, value issued | $ | $ 79 | ||||||
Preferred stock, aggregate liquidation preference | $ | $ 81 | ||||||
Series B Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||
Class of Stock [Line Items] | |||||||
Spread on variable rate | 4.088% |
SHAREHOLDERS' EQUITY, Preferred
SHAREHOLDERS' EQUITY, Preferred Stock Dividends (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares | |
Dividends Payable [Line Items] | |
Dividends declared | $ 4 |
Dividends paid | 2 |
Series A Preferred Stock | |
Dividends Payable [Line Items] | |
Dividends declared | $ 1 |
Dividends declared (in dollars per share) | $ / shares | $ 33.75 |
Dividends paid | $ 1 |
Dividends paid (in dollars per share) | $ / shares | $ 16.88 |
Series B Preferred Stock | |
Dividends Payable [Line Items] | |
Dividends declared | $ 3 |
Dividends declared (in dollars per share) | $ / shares | $ 31.88 |
Dividends paid | $ 1 |
Dividends paid (in dollars per share) | $ / shares | $ 15.94 |
SHAREHOLDERS' EQUITY, Common St
SHAREHOLDERS' EQUITY, Common Stock Dividends Declared and Paid (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 1.36 | $ 1.04 | $ 0.99 |
Dividends paid (in dollars per share) | $ 1.28 | $ 1.03 | $ 0.97 |
Dividend payout ratio | 19.50% | 15.70% | 25.40% |
SHAREHOLDERS' EQUITY, Schedule
SHAREHOLDERS' EQUITY, Schedule of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | $ 8,303 | $ 7,176 | |
OCI: | |||
OCI before reclassifications and taxes | (1,214) | (96) | $ 45 |
Amounts reclassified from AOCI, before tax | 9 | 10 | 2 |
Pre-tax net OCI | (1,205) | (86) | 47 |
Income tax effect | 264 | 34 | (13) |
Total other comprehensive income/(loss), net of tax | (941) | (52) | 34 |
Balance, end of year | 9,432 | 8,303 | 7,176 |
Accumulated other comprehensive (loss) income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | (41) | 11 | (23) |
OCI: | |||
Balance, end of year | (982) | (41) | 11 |
Subtotal: net investment hedges and currency translations | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | (9) | (25) | (25) |
OCI: | |||
OCI before reclassifications and taxes | (91) | 4 | 2 |
Amounts reclassified from AOCI, before tax | 0 | 2 | 0 |
Pre-tax net OCI | (91) | 6 | 2 |
Income tax effect | (23) | 10 | (2) |
Total other comprehensive income/(loss), net of tax | (114) | 16 | 0 |
Balance, end of year | (123) | (9) | (25) |
Net investment hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | 81 | 115 | 110 |
OCI: | |||
OCI before reclassifications and taxes | 95 | (44) | 7 |
Amounts reclassified from AOCI, before tax | 0 | 0 | 0 |
Pre-tax net OCI | 95 | (44) | 7 |
Income tax effect | (23) | 10 | (2) |
Total other comprehensive income/(loss), net of tax | 72 | (34) | 5 |
Balance, end of year | 153 | 81 | 115 |
Currency translations | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | (90) | (140) | (135) |
OCI: | |||
OCI before reclassifications and taxes | (186) | 48 | (5) |
Amounts reclassified from AOCI, before tax | 0 | 2 | 0 |
Pre-tax net OCI | (186) | 50 | (5) |
Income tax effect | 0 | 0 | 0 |
Total other comprehensive income/(loss), net of tax | (186) | 50 | (5) |
Balance, end of year | (276) | (90) | (140) |
Available- for-sale securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | (5) | 89 | 21 |
OCI: | |||
OCI before reclassifications and taxes | (1,208) | (119) | 94 |
Amounts reclassified from AOCI, before tax | 0 | (7) | (3) |
Pre-tax net OCI | (1,208) | (126) | 91 |
Income tax effect | 311 | 32 | (23) |
Total other comprehensive income/(loss), net of tax | (897) | (94) | 68 |
Balance, end of year | (902) | (5) | 89 |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | (27) | (53) | (19) |
OCI: | |||
OCI before reclassifications and taxes | 85 | 19 | (51) |
Amounts reclassified from AOCI, before tax | 9 | 15 | 5 |
Pre-tax net OCI | 94 | 34 | (46) |
Income tax effect | (24) | (8) | 12 |
Total other comprehensive income/(loss), net of tax | 70 | 26 | (34) |
Balance, end of year | $ 43 | $ (27) | $ (53) |
REVENUES, Disaggregation of Rev
REVENUES, Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Principal transactions | $ 527 | $ 561 | $ 488 |
Total non-interest revenues | 9,800 | 9,087 | 7,168 |
All other | 61 | 124 | 21 |
Interest Income | 1,508 | 823 | 1,000 |
Total revenues | 11,308 | 9,910 | 8,168 |
Interest expense | (305) | (150) | (178) |
Net revenues | 11,003 | 9,760 | 7,990 |
Asset management and related administrative fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 5,563 | 4,868 | 3,834 |
Securities commissions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,589 | 1,651 | 1,468 |
Mutual and other fund products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 631 | 683 | 579 |
Insurance and annuity products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 438 | 438 | 397 |
Equities, ETFs and fixed income products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 520 | 530 | 492 |
Total brokerage revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total brokerage revenues | 2,116 | 2,212 | 1,956 |
Total account and service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 833 | 635 | 624 |
Mutual fund and annuity service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 427 | 406 | 348 |
RJBDP fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 202 | 76 | 150 |
Client account and other fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 204 | 153 | 126 |
Total investment banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,100 | 1,143 | 650 |
Merger & acquisition and advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 709 | 639 | 290 |
Equity underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 248 | 332 | 227 |
Debt underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 143 | 172 | 133 |
Total other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 188 | 229 | 104 |
Noninterest income | 188 | 229 | 104 |
Affordable housing investments business revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 127 | 105 | 83 |
Operating segments | Private Client Group | |||
Disaggregation of Revenue [Line Items] | |||
Principal transactions | 76 | 50 | 64 |
Total non-interest revenues | 7,503 | 6,498 | 5,420 |
All other | 32 | 25 | 27 |
Interest Income | 249 | 123 | 155 |
Total revenues | 7,752 | 6,621 | 5,575 |
Interest expense | (42) | (10) | (23) |
Net revenues | 7,710 | 6,611 | 5,552 |
Operating segments | Private Client Group | Asset management and related administrative fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 4,710 | 4,056 | 3,162 |
Operating segments | Private Client Group | Securities commissions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,440 | 1,496 | 1,319 |
Operating segments | Private Client Group | Mutual and other fund products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 620 | 670 | 567 |
Operating segments | Private Client Group | Insurance and annuity products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 438 | 438 | 397 |
Operating segments | Private Client Group | Equities, ETFs and fixed income products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 382 | 388 | 355 |
Operating segments | Private Client Group | Total brokerage revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total brokerage revenues | 1,516 | 1,546 | 1,383 |
Operating segments | Private Client Group | Total account and service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,207 | 824 | 807 |
Operating segments | Private Client Group | Mutual fund and annuity service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 428 | 408 | 348 |
Operating segments | Private Client Group | RJBDP fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 559 | 259 | 330 |
Operating segments | Private Client Group | Client account and other fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 220 | 157 | 129 |
Operating segments | Private Client Group | Total investment banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 38 | 47 | 41 |
Operating segments | Private Client Group | Merger & acquisition and advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Private Client Group | Equity underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 38 | 47 | 41 |
Operating segments | Private Client Group | Debt underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Private Client Group | Total other | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income | 32 | 25 | 27 |
Operating segments | Private Client Group | Affordable housing investments business revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Principal transactions | 446 | 511 | 427 |
Total non-interest revenues | 1,800 | 1,879 | 1,282 |
All other | 10 | 6 | 7 |
Interest Income | 36 | 16 | 25 |
Total revenues | 1,836 | 1,895 | 1,307 |
Interest expense | (27) | (10) | (16) |
Net revenues | 1,809 | 1,885 | 1,291 |
Operating segments | Capital Markets | Asset management and related administrative fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 3 | 4 | 7 |
Operating segments | Capital Markets | Securities commissions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 144 | 149 | 144 |
Operating segments | Capital Markets | Mutual and other fund products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 6 | 6 | 7 |
Operating segments | Capital Markets | Insurance and annuity products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Capital Markets | Equities, ETFs and fixed income products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 138 | 143 | 137 |
Operating segments | Capital Markets | Total brokerage revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total brokerage revenues | 590 | 660 | 571 |
Operating segments | Capital Markets | Total account and service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 8 | 8 | 6 |
Operating segments | Capital Markets | Mutual fund and annuity service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Capital Markets | RJBDP fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1 | 1 | 1 |
Operating segments | Capital Markets | Client account and other fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 7 | 7 | 5 |
Operating segments | Capital Markets | Total investment banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,062 | 1,096 | 608 |
Operating segments | Capital Markets | Merger & acquisition and advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 709 | 639 | 290 |
Operating segments | Capital Markets | Equity underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 210 | 285 | 185 |
Operating segments | Capital Markets | Debt underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 143 | 172 | 133 |
Operating segments | Capital Markets | Total other | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income | 137 | 111 | 90 |
Operating segments | Capital Markets | Affordable housing investments business revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 127 | 105 | 83 |
Operating segments | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Principal transactions | 0 | 0 | 0 |
Total non-interest revenues | 912 | 867 | 714 |
All other | 1 | 2 | 2 |
Interest Income | 2 | 0 | 1 |
Total revenues | 914 | 867 | 715 |
Interest expense | 0 | 0 | 0 |
Net revenues | 914 | 867 | 715 |
Operating segments | Asset Management | Asset management and related administrative fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 882 | 837 | 688 |
Operating segments | Asset Management | Securities commissions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 7 | 10 | 8 |
Operating segments | Asset Management | Mutual and other fund products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 7 | 10 | 8 |
Operating segments | Asset Management | Insurance and annuity products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Asset Management | Equities, ETFs and fixed income products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Asset Management | Total brokerage revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total brokerage revenues | 7 | 10 | 8 |
Operating segments | Asset Management | Total account and service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 22 | 18 | 16 |
Operating segments | Asset Management | Mutual fund and annuity service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1 | 0 | 1 |
Operating segments | Asset Management | RJBDP fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Asset Management | Client account and other fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 21 | 18 | 15 |
Operating segments | Asset Management | Total investment banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Asset Management | Merger & acquisition and advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Asset Management | Equity underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Asset Management | Debt underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Asset Management | Total other | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income | 1 | 2 | 2 |
Operating segments | Asset Management | Affordable housing investments business revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | |||
Disaggregation of Revenue [Line Items] | |||
Principal transactions | 5 | 0 | 1 |
Total non-interest revenues | 31 | 30 | 27 |
All other | 26 | 30 | 26 |
Interest Income | 1,209 | 684 | 800 |
Total revenues | 1,240 | 714 | 827 |
Interest expense | (156) | (42) | (62) |
Net revenues | 1,084 | 672 | 765 |
Operating segments | Bank | Asset management and related administrative fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Securities commissions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Mutual and other fund products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Insurance and annuity products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Equities, ETFs and fixed income products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Total brokerage revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total brokerage revenues | 5 | 0 | 1 |
Operating segments | Bank | Total account and service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Mutual fund and annuity service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | RJBDP fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Client account and other fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Total investment banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Merger & acquisition and advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Equity underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Debt underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Operating segments | Bank | Total other | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income | 26 | 30 | 26 |
Operating segments | Bank | Affordable housing investments business revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Other and intersegment eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Principal transactions | 0 | 0 | (4) |
Total non-interest revenues | (446) | (187) | (275) |
All other | (8) | 61 | (41) |
Interest Income | 12 | 0 | 19 |
Total revenues | (434) | (187) | (256) |
Interest expense | (80) | (88) | (77) |
Net revenues | (514) | (275) | (333) |
Other and intersegment eliminations | Asset management and related administrative fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | (32) | (29) | (23) |
Other and intersegment eliminations | Securities commissions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | (2) | (4) | (3) |
Other and intersegment eliminations | Mutual and other fund products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | (2) | (3) | (3) |
Other and intersegment eliminations | Insurance and annuity products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Other and intersegment eliminations | Equities, ETFs and fixed income products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | (1) | 0 |
Other and intersegment eliminations | Total brokerage revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total brokerage revenues | (2) | (4) | (7) |
Other and intersegment eliminations | Total account and service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | (404) | (215) | (205) |
Other and intersegment eliminations | Mutual fund and annuity service fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | (2) | (2) | (1) |
Other and intersegment eliminations | RJBDP fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | (358) | (184) | (181) |
Other and intersegment eliminations | Client account and other fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | (44) | (29) | (23) |
Other and intersegment eliminations | Total investment banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 1 |
Other and intersegment eliminations | Merger & acquisition and advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Other and intersegment eliminations | Equity underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 1 |
Other and intersegment eliminations | Debt underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | 0 | 0 |
Other and intersegment eliminations | Total other | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income | (8) | 61 | (41) |
Other and intersegment eliminations | Affordable housing investments business revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 0 | $ 0 | $ 0 |
REVENUES, Additional Informatio
REVENUES, Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Receivables related to contract with customer | $ 511 | $ 416 |
INTEREST INCOME AND INTEREST _3
INTEREST INCOME AND INTEREST EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest income: | |||
Cash and cash equivalents | $ 48 | $ 12 | $ 41 |
Assets segregated for regulatory purposes and restricted cash | 96 | 15 | 28 |
Trading assets — debt securities | 27 | 13 | 18 |
Available-for-sale securities | 136 | 85 | 83 |
Brokerage client receivables | 100 | 77 | 84 |
Bank loans, net | 1,051 | 593 | 702 |
All other | 50 | 28 | 44 |
Total interest income | 1,508 | 823 | 1,000 |
Interest expense: | |||
Bank deposits | 131 | 23 | 41 |
Trading liabilities — debt securities | 12 | 2 | 3 |
Brokerage client payables | 24 | 3 | 11 |
Other borrowings | 21 | 19 | 20 |
Senior notes payable | 93 | 96 | 85 |
All other | 24 | 7 | 18 |
Total interest expense | 305 | 150 | 178 |
Net interest income | 1,203 | 673 | 822 |
Bank loan (provision)/benefit for credit losses | (100) | 32 | (233) |
Net interest income after bank loan (provision)/benefit for credit losses | $ 1,103 | $ 705 | $ 589 |
SHARE-BASED AND OTHER COMPENS_3
SHARE-BASED AND OTHER COMPENSATION, Stock Based Compensation Plan, Narrative (Details) shares in Millions | Sep. 30, 2022 plan shares |
Share-based compensation plans [Abstract] | |
Number of previous share based compensation plans | plan | 6 |
2012 Stock Incentive Plan | |
Share-based compensation plans [Abstract] | |
Number of share based compensation plans | plan | 1 |
Number of shares authorized for grant (in shares) (up to) | shares | 78.4 |
Number of shares available for grant (in shares) | shares | 8.7 |
SHARE-BASED AND OTHER COMPENS_4
SHARE-BASED AND OTHER COMPENSATION, Restricted Stock Units and Restricted Stock Award, Narrative (Details) - USD ($) shares in Thousands | 12 Months Ended | |||
Jun. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards issued as consideration for TriState Capital acquisition | $ 28,000,000 | $ 0 | $ 0 | |
TriState Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards (in shares) | 551 | |||
Restricted stock awards issued as consideration for TriState Capital acquisition | $ 28,000,000 | |||
RSU share-based compensation amortization | $ 4,000,000 | |||
Restricted Stock | TriState Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average period of recognition | 3 years | |||
Compensation cost not yet recognized | $ 21,000,000 | |||
Restricted Stock and Restricted Stock Units (RSUs) | 2012 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Excess tax benefits | $ 101,000,000 | |||
Employees and Directors | Restricted Stock | 2012 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum percentage of annual bonus amounts in excess of specified amount that an employee can receive in stock awards, in lieu of cash | 10% | |||
Maximum percentage of annual bonus amounts in excess of specified amount that an employee can receive in stock awards, in lieu of cash | 50% | |||
Bonus amount that must be exceeded in order to receive awards in lieu of cash (greater than) | $ 250,000 | |||
Award vesting period | 1 year | |||
Nonvested awards, compensation cost not yet recognized | $ 319,000,000 | |||
Weighted-average period of recognition | 3 years | |||
RSU share-based compensation amortization | $ 179,000,000 | $ 126,000,000 | $ 110,000,000 | |
Employees and Directors | Restricted Stock | 2012 Stock Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted period of awards | 3 years | |||
Employees and Directors | Restricted Stock | 2012 Stock Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted period of awards | 5 years |
SHARE-BASED AND OTHER COMPENS_5
SHARE-BASED AND OTHER COMPENSATION, Restricted Stock Award (Details) - Restricted Stock - $ / shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Weighted-average grant date fair value (in dollars per share): | |||
Vested (in usd per share) | $ 98.52 | $ 63.86 | $ 58.20 |
2012 Stock Incentive Plan | Employees and Directors | |||
Shares/Units (in shares): | |||
Nonvested - beginning of period (in shares) | 8.2 | ||
Granted (in shares) | 3.4 | ||
Vested (in shares) | (2.4) | ||
Forfeited (in shares) | (0.2) | ||
Nonvested - end of period (in shares) | 9 | 8.2 | |
Weighted-average grant date fair value (in dollars per share): | |||
Nonvested - beginning of period (in usd per share) | $ 56.59 | ||
Granted (in usd per share) | 98.52 | ||
Vested (in usd per share) | 50.55 | ||
Forfeited (in usd per share) | 68.45 | ||
Nonvested - end of period (in usd per share) | $ 73.73 | $ 56.59 |
SHARE-BASED AND OTHER COMPENS_6
SHARE-BASED AND OTHER COMPENSATION, Restricted Stock Award, Expense and Income Tax Benefits (Details) - Employees and Directors - Restricted Stock - 2012 Stock Incentive Plan - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU share-based compensation amortization | $ 179 | $ 126 | $ 110 |
Income tax benefits related to share-based expense | $ 41 | $ 29 | $ 25 |
SHARE-BASED AND OTHER COMPENS_7
SHARE-BASED AND OTHER COMPENSATION, RSU Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per unit award | $ 98.52 | $ 63.86 | $ 58.20 |
Total fair value of RSUs vested | $ 115 | $ 87 | $ 83 |
SHARE-BASED AND OTHER COMPENS_8
SHARE-BASED AND OTHER COMPENSATION, Restricted Stock Awards Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Jun. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards issued as consideration for TriState Capital acquisition | $ 28 | $ 0 | $ 0 | |
TriState Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards (in shares) | 551 | |||
Restricted stock awards issued as consideration for TriState Capital acquisition | $ 28 | |||
Compensation expense | 4 | |||
TriState Capital | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost not yet recognized | $ 21 | |||
Weighted-average period of recognition | 3 years |
SHARE-BASED AND OTHER COMPENS_9
SHARE-BASED AND OTHER COMPENSATION, Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for grant (in shares) (up to) | 13,100,000 | ||
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) | 85% | ||
Number of shares sold during the period (in shares) | 416,000 | 393,000 | 699,000 |
Discount from market value | 15% | 15% | 15% |
RSU share-based compensation amortization | $ 6,000,000 | $ 5,000,000 | $ 5,000,000 |
SHARE-BASED AND OTHER COMPEN_10
SHARE-BASED AND OTHER COMPENSATION, Stock Options Narrative (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
2012 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cash received from stock option exercises | $ 15 |
SHARE-BASED AND OTHER COMPEN_11
SHARE-BASED AND OTHER COMPENSATION, Employee Other Compensation (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Award requisite service period | 5 years | ||
Employer match percent of first $1,000 of compensation deferred by each participant | 75% | ||
Employer match of first $1,000 of compensation deferred by each participant | $ 1,000 | ||
Employer match percent of next $1,000 of compensation deferred by each participant | 25% | ||
Employer match of next $1,000 of compensation deferred by each participant | $ 1,000 | ||
Compensation expense | $ 195,000,000 | $ 175,000,000 | $ 149,000,000 |
Employee Stock Ownership Plan ESOP | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Number of shares of common stock held by ESOP (in shares) | 6.6 | 6.7 | |
Market value of common stock held by the ESOP | $ 651,000,000 | ||
Value of unearned (not yet vested) shares held by ESOP plan participants | $ 7,000,000 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS, RJF and RJB (Details) $ in Millions | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) |
Requirements of broker-dealer subsidiaries [Abstract] | ||
Minimum net capital allowed under the alternative net capital requirement | $ 1.5 | |
Percentage of aggregate debit items allowed for net capital, under the alternative net capital requirement | 0.02 | |
Raymond James Financial Inc | ||
Tier 1 leverage | ||
Actual, amount | $ 8,480 | $ 7,428 |
Actual, ratio | 0.103 | 0.126 |
Requirement for capital adequacy purposes, amount | $ 3,304 | $ 2,363 |
Requirement for capital adequacy purposes, ratio | 0.040 | 0.040 |
To be well-capitalized under regulatory provisions, amount | $ 4,130 | $ 2,954 |
To be well-capitalized under regulatory provisions, ratio | 0.050 | 0.050 |
Tier 1 capital | ||
Actual, amount | $ 8,480 | $ 7,428 |
Actual, ratio | 0.192 | 0.250 |
Requirement for capital adequacy purposes, amount | $ 2,651 | $ 1,783 |
Requirement for capital adequacy purposes, ratio | 0.060 | 0.060 |
To be well-capitalized under regulatory provisions, amount | $ 3,534 | $ 2,377 |
To be well-capitalized under regulatory provisions, ratio | 0.080 | 0.080 |
CET1 | ||
Actual, amount | $ 8,380 | $ 7,428 |
Actual, ratio | 0.190 | 0.250 |
Requirement for capital adequacy purposes, amount | $ 1,988 | $ 1,337 |
Requirement for capital adequacy purposes, ratio | 0.045 | 0.045 |
To be well-capitalized under regulatory provisions, amount | $ 2,871 | $ 1,932 |
To be well-capitalized under regulatory provisions, ratio | 0.065 | 0.065 |
Total capital | ||
Actual, amount | $ 9,031 | $ 7,780 |
Actual ratio | 0.204 | 0.262 |
Requirement for capital adequacy purposes, amount | $ 3,534 | $ 2,377 |
Requirement for capital adequacy purposes, ratio | 0.080 | 0.080 |
To be well-capitalized under regulatory provisions, amount | $ 4,418 | $ 2,972 |
To be well-capitalized under regulatory provisions, ratio | 0.100 | 0.100 |
Bank | ||
Tier 1 leverage | ||
Actual, amount | $ 2,998 | $ 2,626 |
Actual, ratio | 0.071 | 0.074 |
Requirement for capital adequacy purposes, amount | $ 1,695 | $ 1,411 |
Requirement for capital adequacy purposes, ratio | 0.040 | 0.040 |
To be well-capitalized under regulatory provisions, amount | $ 2,119 | $ 1,763 |
To be well-capitalized under regulatory provisions, ratio | 0.050 | 0.050 |
Tier 1 capital | ||
Actual, amount | $ 2,998 | $ 2,626 |
Actual, ratio | 0.121 | 0.134 |
Requirement for capital adequacy purposes, amount | $ 1,485 | $ 1,177 |
Requirement for capital adequacy purposes, ratio | 0.060 | 0.060 |
To be well-capitalized under regulatory provisions, amount | $ 1,979 | $ 1,569 |
To be well-capitalized under regulatory provisions, ratio | 0.080 | 0.080 |
CET1 | ||
Actual, amount | $ 2,998 | $ 2,626 |
Actual, ratio | 0.121 | 0.134 |
Requirement for capital adequacy purposes, amount | $ 1,113 | $ 883 |
Requirement for capital adequacy purposes, ratio | 0.045 | 0.045 |
To be well-capitalized under regulatory provisions, amount | $ 1,608 | $ 1,275 |
To be well-capitalized under regulatory provisions, ratio | 0.065 | 0.065 |
Total capital | ||
Actual, amount | $ 3,308 | $ 2,873 |
Actual ratio | 0.134 | 0.146 |
Requirement for capital adequacy purposes, amount | $ 1,979 | $ 1,569 |
Requirement for capital adequacy purposes, ratio | 0.080 | 0.080 |
To be well-capitalized under regulatory provisions, amount | $ 2,474 | $ 1,962 |
To be well-capitalized under regulatory provisions, ratio | 0.100 | 0.100 |
TriState Capital Bank | ||
Tier 1 leverage | ||
Actual, amount | $ 1,093 | |
Actual, ratio | 0.073 | |
Requirement for capital adequacy purposes, amount | $ 601 | |
Requirement for capital adequacy purposes, ratio | 0.040 | |
To be well-capitalized under regulatory provisions, amount | $ 752 | |
To be well-capitalized under regulatory provisions, ratio | 0.050 | |
Tier 1 capital | ||
Actual, amount | $ 1,093 | |
Actual, ratio | 0.141 | |
Requirement for capital adequacy purposes, amount | $ 463 | |
Requirement for capital adequacy purposes, ratio | 0.060 | |
To be well-capitalized under regulatory provisions, amount | $ 618 | |
To be well-capitalized under regulatory provisions, ratio | 0.080 | |
CET1 | ||
Actual, amount | $ 1,093 | |
Actual, ratio | 0.141 | |
Requirement for capital adequacy purposes, amount | $ 348 | |
Requirement for capital adequacy purposes, ratio | 0.045 | |
To be well-capitalized under regulatory provisions, amount | $ 502 | |
To be well-capitalized under regulatory provisions, ratio | 0.065 | |
Total capital | ||
Actual, amount | $ 1,122 | |
Actual ratio | 0.145 | |
Requirement for capital adequacy purposes, amount | $ 618 | |
Requirement for capital adequacy purposes, ratio | 0.080 | |
To be well-capitalized under regulatory provisions, amount | $ 772 | |
To be well-capitalized under regulatory provisions, ratio | 0.100 |
REGULATORY CAPITAL REQUIREMEN_4
REGULATORY CAPITAL REQUIREMENTS, RJ&A (Details) - Raymond James and Associates Inc $ in Millions | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) |
Schedule Of Compliance With Regulatory Capital Requirements, Broker-Dealer [Line Items] | ||
Net capital as a percent of aggregate debit items | 0.409 | 0.721 |
Net capital | $ 1,152 | $ 2,035 |
Less: required net capital | (56) | (56) |
Excess net capital | $ 1,096 | $ 1,979 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Aug. 24, 2021 | Sep. 30, 2021 | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2020 USD ($) $ / shares shares | |
Earnings Per Share [Abstract] | |||||
Stock split ratio | 1.5 | 1.5 | |||
Income for basic earnings per common share: | |||||
Net income available to common shareholders | $ 1,505 | $ 1,403 | $ 818 | ||
Less allocation of earnings and dividends to participating securities | (3) | (2) | (1) | ||
Net income available to common shareholders after participating securities | 1,502 | 1,401 | 817 | ||
Income for diluted earnings per common share: | |||||
Net income available to common shareholders | 1,505 | 1,403 | 818 | ||
Less allocation of earnings and dividends to participating securities | (3) | (2) | (1) | ||
Net income available to common shareholders after participating securities | $ 1,502 | $ 1,401 | $ 817 | ||
Common shares: | |||||
Average common shares in basic computation (in shares) | shares | 209.9 | 205.7 | 206.4 | ||
Dilutive effect of outstanding stock options and certain RSUs (in shares) | shares | 5.4 | 5.5 | 3.9 | ||
Average common and common equivalent shares used in diluted computation (in shares) | shares | 215.3 | 211.2 | 210.3 | ||
Earnings per common share: | |||||
Basic (in usd per share) | $ / shares | $ 7.16 | $ 6.81 | $ 3.96 | ||
Diluted (in usd per share) | $ / shares | $ 6.98 | $ 6.63 | $ 3.88 | ||
Stock options and certain RSUs excluded from weighted-average diluted common shares because their effect would be antidilutive (in shares) | shares | 0.1 | 0.1 | 2.3 |
SEGMENT INFORMATION, Informatio
SEGMENT INFORMATION, Information Concerning Operations (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 USD ($) businessSegment | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | businessSegment | 5 | ||
Net revenues: | |||
Net revenues | $ 11,003 | $ 9,760 | $ 7,990 |
Pre-tax income/(loss): | |||
Total pre-tax income | 2,022 | 1,791 | 1,052 |
Net interest income (expense): | |||
Net interest income | 1,203 | 673 | 822 |
Total assets: | |||
Aggregate assets | 80,951 | 61,891 | |
Goodwill and Intangible Assets: | |||
Goodwill | 1,422 | 660 | 466 |
Private Client Group | |||
Goodwill and Intangible Assets: | |||
Goodwill | 550 | 417 | 277 |
Capital Markets | |||
Goodwill and Intangible Assets: | |||
Goodwill | 274 | 174 | 120 |
Asset Management | |||
Goodwill and Intangible Assets: | |||
Goodwill | 69 | 69 | 69 |
Bank | |||
Goodwill and Intangible Assets: | |||
Goodwill | 529 | 0 | 0 |
Other | |||
Net interest income (expense): | |||
Net interest income | (68) | (88) | (58) |
Operating segments | Private Client Group | |||
Net revenues: | |||
Net revenues | 7,710 | 6,611 | 5,552 |
Pre-tax income/(loss): | |||
Total pre-tax income | 1,030 | 749 | 539 |
Net interest income (expense): | |||
Net interest income | 207 | 113 | 132 |
Total assets: | |||
Aggregate assets | 17,770 | 20,270 | |
Operating segments | Capital Markets | |||
Net revenues: | |||
Net revenues | 1,809 | 1,885 | 1,291 |
Pre-tax income/(loss): | |||
Total pre-tax income | 415 | 532 | 225 |
Net interest income (expense): | |||
Net interest income | 9 | 6 | 9 |
Total assets: | |||
Aggregate assets | 3,951 | 2,457 | |
Operating segments | Asset Management | |||
Net revenues: | |||
Net revenues | 914 | 867 | 715 |
Pre-tax income/(loss): | |||
Total pre-tax income | 386 | 389 | 284 |
Net interest income (expense): | |||
Net interest income | 2 | 0 | 1 |
Total assets: | |||
Aggregate assets | 556 | 476 | |
Operating segments | Bank | |||
Net revenues: | |||
Net revenues | 1,084 | 672 | 765 |
Pre-tax income/(loss): | |||
Total pre-tax income | 382 | 367 | 196 |
Net interest income (expense): | |||
Net interest income | 1,053 | 642 | 738 |
Total assets: | |||
Aggregate assets | 56,737 | 36,154 | |
Operating segments | Other | |||
Net revenues: | |||
Net revenues | (50) | (8) | (82) |
Pre-tax income/(loss): | |||
Total pre-tax income | (191) | (246) | (192) |
Total assets: | |||
Aggregate assets | 1,937 | 2,534 | |
Intersegment eliminations | |||
Net revenues: | |||
Net revenues | $ (464) | $ (267) | $ (251) |
SEGMENT INFORMATION, Classified
SEGMENT INFORMATION, Classified by Major Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net revenues: | |||
Total revenues | $ 11,003 | $ 9,760 | $ 7,990 |
Pre-tax income/(loss): | |||
Total pre-tax income | 2,022 | 1,791 | 1,052 |
Total assets: | |||
Aggregate assets | 80,951 | 61,891 | |
Goodwill and Intangible Assets: | |||
Goodwill | 1,422 | 660 | 466 |
U.S. | |||
Net revenues: | |||
Total revenues | 10,065 | 9,067 | 7,446 |
Pre-tax income/(loss): | |||
Total pre-tax income | 1,907 | 1,701 | 1,028 |
Total assets: | |||
Aggregate assets | 74,428 | 57,952 | |
Goodwill and Intangible Assets: | |||
Goodwill | 1,250 | 619 | |
Canada | |||
Net revenues: | |||
Total revenues | 542 | 485 | 386 |
Pre-tax income/(loss): | |||
Total pre-tax income | 83 | 53 | 29 |
Total assets: | |||
Aggregate assets | 3,631 | 3,724 | |
Goodwill and Intangible Assets: | |||
Goodwill | 23 | 25 | |
Europe | |||
Net revenues: | |||
Total revenues | 396 | 208 | 158 |
Pre-tax income/(loss): | |||
Total pre-tax income | 32 | 37 | $ (5) |
Total assets: | |||
Aggregate assets | 2,892 | 215 | |
Goodwill and Intangible Assets: | |||
Goodwill | $ 149 | $ 16 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net assets available for distribution to Parent | $ 125 | |
Net assets restricted from being transferred to Parent | 5,100 | |
RJF Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Unrestricted cash and cash equivalents available to Parent | 1,910 | $ 1,160 |
Intercompany receivables from subsidiaries (primarily non-bank subsidiaries) | 1,624 | 877 |
RJF parent cash deposited with RJ Bank | 260 | 229 |
RJF parent cash deposited with RJ bank, unrestricted | 230 | 152 |
RJF Parent Company | Raymond James and Associates Inc | ||
Condensed Financial Statements, Captions [Line Items] | ||
Intercompany receivables from subsidiaries (primarily non-bank subsidiaries) | $ 1,300 | $ 649 |
Raymond James and Associates Inc | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ratio of net capital to aggregate debit balances required by loan covenants | 10% |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Financial Condition (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Assets: | |||
Cash and cash equivalents | $ 6,178 | $ 7,201 | $ 5,390 |
Assets segregated for regulatory purposes and restricted cash ($1 and $1 at fair value) | 8,481 | 11,348 | |
Investments in consolidated subsidiaries: | |||
Goodwill and identifiable intangible assets, net | 1,931 | 882 | |
Other assets | 264 | 161 | |
Total assets | 80,951 | 61,891 | |
Liabilities and shareholders’ equity: | |||
Accrued compensation, commissions and benefits | 1,787 | 1,825 | |
Other payables | 1,768 | 1,701 | |
Total liabilities | 71,519 | 53,588 | |
Equity | 9,458 | 8,245 | |
Total liabilities and shareholders’ equity | 80,951 | 61,891 | |
RJF Parent Company | |||
Assets: | |||
Cash and cash equivalents | 629 | 527 | $ 478 |
Assets segregated for regulatory purposes and restricted cash ($1 and $1 at fair value) | 31 | 478 | |
Intercompany receivables from subsidiaries (primarily non-bank subsidiaries) | 1,624 | 877 | |
Investments in consolidated subsidiaries: | |||
Bank subsidiaries | 3,549 | 2,594 | |
Non-bank subsidiaries | 5,611 | 5,703 | |
Goodwill and identifiable intangible assets, net | 32 | 32 | |
Other assets | 907 | 1,055 | |
Total assets | 12,383 | 11,266 | |
Liabilities and shareholders’ equity: | |||
Accrued compensation, commissions and benefits | 715 | 798 | |
Bank subsidiaries | 0 | 2 | |
Non-bank subsidiaries | 17 | 33 | |
Senior notes payable | 2,038 | 2,037 | |
Other payables | 155 | 151 | |
Total liabilities | 2,925 | 3,021 | |
Equity | 9,458 | 8,245 | |
Total liabilities and shareholders’ equity | 12,383 | 11,266 | |
Assets segregated pursuant to regulations, fair value | $ 1 | $ 1 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | |||
Interest income | $ 1,508 | $ 823 | $ 1,000 |
All other | 61 | 124 | 21 |
Total revenues | 11,308 | 9,910 | 8,168 |
Interest expense | (305) | (150) | (178) |
Net revenues | 11,003 | 9,760 | 7,990 |
Non-interest expenses: | |||
Compensation and benefits | 7,329 | 6,584 | 5,465 |
Non-compensation expenses: | |||
Communications and information processing | 506 | 429 | 393 |
Occupancy and equipment | 252 | 232 | 225 |
Business development | 186 | 111 | 134 |
Losses on extinguishment of debt | 0 | 98 | 0 |
Other | 325 | 295 | 250 |
Total non-compensation expenses | 1,652 | 1,385 | 1,473 |
Provision for income taxes | 513 | 388 | 234 |
Net income | 1,509 | 1,403 | 818 |
Preferred stock dividends | 4 | 0 | 0 |
Net income available to common shareholders, basic | 1,505 | 1,403 | 818 |
Net income available to common shareholders, diluted | 1,505 | 1,403 | 818 |
RJF Parent Company | |||
Revenues: | |||
Dividends from non-bank subsidiaries | 2,002 | 257 | 634 |
Dividends from bank subsidiaries | 60 | 0 | 130 |
Interest from subsidiaries | 23 | 9 | 18 |
Interest income | 3 | 1 | 3 |
All other | 17 | 21 | 23 |
Total revenues | 2,105 | 288 | 808 |
Interest expense | (93) | (97) | (87) |
Net revenues | 2,012 | 191 | 721 |
Non-interest expenses: | |||
Compensation and benefits | 98 | 81 | 63 |
Non-compensation expenses: | |||
Communications and information processing | 6 | 5 | 6 |
Occupancy and equipment | 1 | 1 | 1 |
Business development | 20 | 19 | 18 |
Losses on extinguishment of debt | 0 | 98 | 0 |
Other | 64 | 30 | 23 |
Intercompany allocations and charges | (8) | (14) | (16) |
Total non-compensation expenses | 83 | 139 | 32 |
Total non-interest expenses | 181 | 220 | 95 |
Pre-tax income/(loss) before equity in undistributed net income of subsidiaries | 1,831 | (29) | 626 |
Provision for income taxes | (20) | (99) | (58) |
Income before equity in undistributed net income of subsidiaries | 1,851 | 70 | 684 |
Equity in undistributed net income of subsidiaries | (342) | 1,333 | 134 |
Net income | 1,509 | 1,403 | 818 |
Preferred stock dividends | 4 | 0 | 0 |
Net income available to common shareholders, basic | $ 1,505 | $ 1,403 | $ 818 |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY), Condensed Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 1,509 | $ 1,403 | $ 818 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Losses on extinguishment of debt | 0 | 98 | 0 |
Other | 49 | 66 | 92 |
Net change in: | |||
Accrued compensation, commissions and benefits | (76) | 416 | 70 |
Net cash provided by operating activities | 72 | 6,647 | 4,073 |
Cash flows from investing activities: | |||
Investment in note receivable | (125) | 0 | 0 |
Net cash used in investing activities | (7,151) | (5,140) | (4,985) |
Cash flows from financing activities: | |||
Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements | (216) | (150) | (291) |
Dividends on preferred and common stock | (277) | (218) | (205) |
Proceeds from senior notes issuances, net of debt issuance costs paid | 0 | 737 | 494 |
Extinguishment of senior notes payable | 0 | (844) | 0 |
Net cash provided by financing activities | 5,879 | 5,232 | 4,574 |
Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash | (1,790) | 6,815 | 3,663 |
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year | 16,449 | 9,634 | 5,971 |
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of year | 14,659 | 16,449 | 9,634 |
Cash and cash equivalents | 6,178 | 7,201 | 5,390 |
Cash and cash equivalents segregated for regulatory purposes and restricted cash | 8,481 | 9,248 | 4,244 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 323 | 145 | 164 |
Cash received for income taxes, net | 524 | 437 | 246 |
Restricted stock awards issued as consideration for TriState Capital acquisition | 28 | 0 | 0 |
Effective settlement of note receivable for TriState Capital acquisition | 123 | 0 | 0 |
Common stock, par value $.01 per share | |||
Supplemental disclosures of cash flow information: | |||
Stock issued as consideration for TriState Capital acquisition | 778 | 0 | 0 |
Preferred stock | |||
Supplemental disclosures of cash flow information: | |||
Stock issued as consideration for TriState Capital acquisition | 120 | 0 | 0 |
RJF Parent Company | |||
Cash flows from operating activities: | |||
Net income | 1,509 | 1,403 | 818 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss on investments | 1 | 5 | 4 |
Unrealized (gain)/loss on company-owned life insurance policies, net of expenses | 159 | (157) | (50) |
Equity in undistributed net income of subsidiaries | 342 | (1,333) | (134) |
Losses on extinguishment of debt | 0 | 98 | 0 |
Other | 161 | 94 | 102 |
Net change in: | |||
Intercompany receivables | (23) | (14) | 126 |
Other assets | 40 | (35) | 24 |
Intercompany payables | (18) | (14) | (70) |
Other payables | 3 | 38 | 43 |
Accrued compensation, commissions and benefits | (82) | 202 | 73 |
Net cash provided by operating activities | 2,092 | 287 | 936 |
Cash flows from investing activities: | |||
Investments in subsidiaries | (1,092) | (420) | (106) |
(Advances to)/repayments from subsidiaries, net | (723) | 1,039 | (885) |
Investment in note receivable | (125) | 0 | 0 |
Proceeds from sales of investments | 7 | 2 | 9 |
Purchase of investments in company-owned life insurance policies, net | (63) | (36) | (55) |
Net cash used in investing activities | (1,996) | 585 | (1,037) |
Cash flows from financing activities: | |||
Repurchases of common stock and share-based awards withheld for payment of withholding tax requirements | (216) | (151) | (291) |
Dividends on preferred and common stock | (277) | (218) | (205) |
Exercise of stock options and employee stock purchases | 52 | 53 | 62 |
Proceeds from senior notes issuances, net of debt issuance costs paid | 0 | 737 | 494 |
Extinguishment of senior notes payable | 0 | (844) | 0 |
Net cash provided by financing activities | (441) | (423) | 60 |
Net increase/(decrease) in cash and cash equivalents, including those segregated for regulatory purposes and restricted cash | (345) | 449 | (41) |
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at beginning of year | 1,004 | 555 | 596 |
Cash and cash equivalents, including those segregated for regulatory purposes and restricted cash at end of year | 659 | 1,004 | 555 |
Cash and cash equivalents | 629 | 527 | 478 |
Cash and cash equivalents segregated for regulatory purposes and restricted cash | 30 | 477 | 77 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 117 | 89 | 72 |
Cash received for income taxes, net | 24 | 35 | 32 |
Restricted stock awards issued as consideration for TriState Capital acquisition | 28 | 0 | 0 |
Effective settlement of note receivable for TriState Capital acquisition | 123 | 0 | 0 |
RJF Parent Company | Common stock, par value $.01 per share | |||
Supplemental disclosures of cash flow information: | |||
Stock issued as consideration for TriState Capital acquisition | 778 | 0 | 0 |
RJF Parent Company | Preferred stock | |||
Supplemental disclosures of cash flow information: | |||
Stock issued as consideration for TriState Capital acquisition | $ 120 | $ 0 | $ 0 |