AVAILABLE FOR SALE SECURITIES (Tables)

12 Months Ended

Sep. 30, 2011

AVAILABLE FOR SALE SECURITIES [Abstract]

Amortized Cost and Estimated Fair Values of Available For Sale Securities

The amortized cost and fair values of available for sale securities are as follows:

	September 30, 2011
	Cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
	(in thousands)
Available for sale securities:
Agency MBS and CMOs	$	178,120	$	639	$	(27	)	$	178,732
Non-agency CMOs (1)		192,956		-		(47,081	)		145,875
Total RJ Bank available for sale securities		371,076		639		(47,108	)		324,607

Auction rate securities:
Municipal obligations		79,524		-		-			79,524
Preferred securities		116,524		-		-			116,524
Total auction rate securities (2)		196,048		-		-			196,048

Other securities		3		7		-			10
Total available for sale securities	$	567,127	$	646	$	(47,108	)	$	520,665

	September 30, 2010
	Cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
	(in thousands)
Available for sale securities:
Agency MBS and CMOs	$	217,516	$	559	$	(196	)	$	217,879
Non-agency CMOs (3)		252,522		16		(50,968	)		201,570
Other securities		5,000		3		-			5,003
Total RJ Bank available for sale securities		475,038		578		(51,164	)		424,452
Other securities		3		6		-			9
Total available for sale securities	$	475,041	$	584	$	(51,164	)	$	424,461

	September 30, 2009
	Cost basis		Gross unrealized gains		Gross unrealized losses			Fair Value
	(in thousands)
Available for sale securities:
Agency MBS and CMOs	$	275,995	$	213	$	(3,316	)	$	272,892
Non-agency CMOs (4)		325,823		-		(94,660	)		231,163
Other securities		5,000		10		-			5,010
Total RJ Bank available for sale securities		606,818		223		(97,976	)		509,065
Other securities		3		5		-			8
Total available for sale securities	$	606,821	$	228	$	(97,976	)	$	509,073

(1)	As of September 30, 2011, the non-credit portion of OTTI recorded in AOCI was $37.9 million (before taxes).

(2)	During fiscal year 2011, ARS with a fair value of approximately $7.5 million which were previously held in trading instruments and arose prior to the ARS settlement (refer to Note 17 for discussion of the ARS settlement) were transferred into available for sale securities.

(3)	As of September 30, 2010, the non-credit portion of OTTI recorded in AOCI was $36.1 million (before taxes).

(4)	As of September 30, 2009, the non-credit portion of OTTI recorded in AOCI was $20.5 million (before taxes).

Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available For Sales Securities

The contractual maturities, amortized cost, carrying values and current yields for our available for sale securities are as presented below. Since RJ Bank's available for sale securities are backed by mortgages, actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. Expected maturities of ARS and other securities may differ significantly from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2011
	Within one year		After one but within five years		After five but within ten years			After ten years			Total
	(in thousands)
Agency MBS & CMOs:
Amortized cost	$	-	$	-	$	51,262		$	126,858		$	178,120
Carrying value		-		-		51,418			127,314			178,732
Weighted-average yield		-		-		0.46	%		0.57	%		0.54	%

Non-agency CMOs:
Amortized cost	$	-	$	-	$	-		$	192,956		$	192,956
Carrying value		-		-		-			145,875			145,875
Weighted-average yield		-		-		-			4.33	%		4.33	%

Sub-total agency MBS & CMOs and non-agency CMOs:
Amortized cost	$	-	$	-	$	51,262		$	319,814		$	371,076
Carrying value		-		-		51,418			273,189			324,607
Weighted-average yield		-		-		0.46	%		2.58	%		2.24	%

Auction rate securities:
Municipal obligations
Amortized cost	$	-	$	-	$	553		$	78,971		$	79,524
Carrying value		-		-		553			78,971			79,524
Weighted-average yield		-		-		0.48	%		0.75	%		0.75	%

Preferred securities:
Amortized cost	$	-	$	-	$	-		$	116,524		$	116,524
Carrying value		-		-		-			116,524			116,524
Weighted-average yield		-		-		-			0.26	%		0.26	%

Sub-total auction rate securities:
Amortized cost	$	-	$	-	$	553		$	195,495		$	196,048
Carrying value		-		-		553			195,495			196,048
Weighted-average yield		-		-		0.48	%		0.46	%		0.46	%

Other securities:
Amortized cost	$	-	$	-	$	-		$	3		$	3
Carrying value		-		-		-			10			10

Total available for sale securities:
Amortized cost	$	-	$	-	$	51,815		$	515,312		$	567,127
Carrying value		-		-		51,971			468,694			520,665
Weighted-average yield		-		-		0.46	%		1.78	%		1.66	%

Available For Sale Securities in a Continuous Unrealized Loss Position

The gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, are as follows:

	September 30, 2011
	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	fair value		losses			fair value		losses			fair value		losses
	(in thousands)

Agency MBS and CMOs	$	23,366	$	(6	)	$	17,702	$	(21	)	$	41,068	$	(27	)
Non-agency CMOs		1,345		(93	)		144,530		(46,988	)		145,875		(47,081	)
Total impaired securities	$	24,711	$	(99	)	$	162,232	$	(47,009	)	$	186,943	$	(47,108	)

	September 30, 2010
	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	fair value		losses			fair value		losses			fair value		losses
	(in thousands)

Agency MBS and CMOs	$	45,026	$	(117	)	$	58,425	$	(79	)	$	103,451	$	(196	)
Non-agency CMOs		-		-			199,877		(50,968	)		199,877		(50,968	)
Total impaired securities	$	45,026	$	(117	)	$	258,302	$	(51,047	)	$	303,328	$	(51,164	)

Non-Agency CMOs Cash Flow Analysis Assumptions

The significant assumptions used in the cash flow analysis of non-agency CMOs are as follows:

	September 30, 2011
	Range	Weighted- average (1)

Default rate	0.3% - 36.3%	14.4%
Loss severity	15.0% - 70.8%	45.2%
Prepayment rate	0% - 30.2%	10.4%

(1)	Represents the expected activity for the next twelve months.

Credit Losses Recognized in Earnings on Available For Sale Securities

Changes in the amount of OTTI related to credit losses recognized in other revenues on available for sale securities are as follows:

	Year ended September 30,
	2011			2010			2009
	(in thousands)

Amount related to credit losses on securities we held at the beginning of the period	$	18,816		$	17,762		$	4,869
Additions to the amount related to credit loss for which an OTTI was not previously recognized		240			5,166			11,393
Decreases to the amount related to credit loss for securities sold during the period		(6,744	)		-			-
Additional increases to the amount related to credit loss for which an OTTI was previously recognized		9,994			6,864			1,500
Decreases to the amount related to credit losses for worthless securities		-			(10,976	)		-
Amount related to credit losses on securities we held at the end of the period	$	22,306		$	18,816		$	17,762

- Definition

Tabular disclosure of available-for-sale securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt.

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+ Details

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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