AVAILABLE FOR SALE SECURITIES (Tables)

6 Months Ended

Mar. 31, 2016

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:

	Cost basis		Gross unrealized gains		Gross unrealized losses			Fair value
	(in thousands)
March 31, 2016
Available for sale securities:
Agency MBS and CMOs	$	352,789	$	1,896	$	(255	)	$	354,430
Non-agency CMOs (1)	68,135		9		(4,450		)	63,694
Other securities	1,575		—		(278		)	1,297
Total RJ Bank available for sale securities	422,499		1,905		(4,983		)	419,421
Auction rate securities:
Municipal obligations	27,491		14		(2,083		)	25,422
Preferred securities	104,302		—		(1,703		)	102,599
Total auction rate securities	131,793		14		(3,786		)	128,021
Total available for sale securities	$	554,292	$	1,919	$	(8,769	)	$	547,442
September 30, 2015
Available for sale securities:
Agency MBS and CMOs	$	301,001	$	1,538	$	(344	)	$	302,195
Non-agency CMOs (2)	75,678		18		(4,327		)	71,369
Other securities	1,575		—		(173		)	1,402
Total RJ Bank available for sale securities	378,254		1,556		(4,844		)	374,966
Auction rate securities:
Municipal obligations	28,966		576		(1,527		)	28,015
Preferred securities	104,302		6,447		—			110,749
Total auction rate securities	133,268		7,023		(1,527		)	138,764
Total available for sale securities	$	511,522	$	8,579	$	(6,371	)	$	513,730

(1) As of March 31, 2016, the non-credit portion of other-than-temporary impairment (“OTTI”) recorded in accumulated other comprehensive income (loss) (“AOCI”) was $3.6 million (before taxes). See Note 17 for additional information.

(2) As of September 30, 2015, the non-credit portion of OTTI recorded in AOCI was $3.6 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 (MBS & CMOs) are backed by mortgages, actual maturities will differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties.  Expected maturities of ARS may differ significantly from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2016
	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	$	5		$	24,179		$	77,073		$	251,532		$	352,789
Carrying value	5			24,456			77,361			252,608			354,430
Weighted-average yield	0.86		%	1.59		%	1.51		%	1.43		%	1.46		%
Non-agency CMOs:
Amortized cost	$	—		$	—		$	—		$	68,135		$	68,135
Carrying value	—			—			—			63,694			63,694
Weighted-average yield	—			—			—			2.52		%	2.52		%
Other securities:
Amortized cost	$	—		$	—		$	—		$	1,575		$	1,575
Carrying value	—			—			—			1,297			1,297
Weighted-average yield	—			—			—			—			—
Sub-total agency MBS & CMOs, non-agency CMOs, and other securities:
Amortized cost	$	5		$	24,179		$	77,073		$	321,242		$	422,499
Carrying value	5			24,456			77,361			317,599			419,421
Weighted-average yield	0.86		%	1.59		%	1.51		%	1.65		%	1.62		%
Auction rate securities:
Municipal obligations
Amortized cost	$	—		$	—		$	—		$	27,491		$	27,491
Carrying value	—			—			—			25,422			25,422
Weighted-average yield	—			—			—			0.55		%	0.55		%
Preferred securities:
Amortized cost	$	—		$	—		$	—		$	104,302		$	104,302
Carrying value	—			—			—			102,599			102,599
Weighted-average yield	—			—			—			0.80		%	0.80		%
Sub-total auction rate securities:
Amortized cost	$	—		$	—		$	—		$	131,793		$	131,793
Carrying value	—			—			—			128,021			128,021
Weighted-average yield	—			—			—			0.75		%	0.75		%
Total available for sale securities:
Amortized cost	$	5		$	24,179		$	77,073		$	453,035		$	554,292
Carrying value	5			24,456			77,361			445,620			547,442
Weighted-average yield	0.86		%	1.59		%	1.51		%	1.39		%	1.42		%

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:

	March 31, 2016
	Less than 12 months					12 months or more					Total
	Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses
	(in thousands)
Agency MBS and CMOs	$	27,073	$	(35	)	$	24,687	$	(220	)	$	51,760	$	(255	)
Non-agency CMOs	4,347		(37		)	58,720		(4,413		)	63,067		(4,450		)
Other securities	1,297		(278		)	—		—			1,297		(278		)
ARS municipal obligations	13,392		(508		)	11,782		(1,575		)	25,174		(2,083		)
ARS preferred securities	101,070		(1,703		)	—		—			101,070		(1,703		)
Total	$	147,179	$	(2,561	)	$	95,189	$	(6,208	)	$	242,368	$	(8,769	)

	September 30, 2015
	Less than 12 months					12 months or more					Total
	Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses
	(in thousands)
Agency MBS and CMOs	$	3,488	$	(37	)	$	29,524	$	(307	)	$	33,012	$	(344	)
Non-agency CMOs	—		—			65,854		(4,327		)	65,854		(4,327		)
Other securities	1,402		(173		)	—		—			1,402		(173		)
ARS municipal obligations	225		(3		)	11,627		(1,524		)	11,852		(1,527		)
Total	$	5,115	$	(213	)	$	107,005	$	(6,158	)	$	112,120	$	(6,371	)

Non-Agency CMOs Cash Flow Analysis Assumptions

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

	March 31, 2016
	Range	Weighted- average (1)
Default rate	0% - 6.6%	3.42%
Loss severity	0% - 69.2%	36.31%
Prepayment rate	5.6% - 32.0%	12.74%

(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:

	Three months ended March 31,				Six months ended March 31,
	2016		2015		2016		2015
	(in thousands)
Amount related to credit losses on securities we held at the beginning of the period	$	11,847	$	18,703	$	11,847	$	18,703
Additional increases to the amount related to credit loss for which an OTTI was previously recognized	—		—		—		—
Amount related to credit losses on securities we held at the end of the period	$	11,847	$	18,703	$	11,847	$	18,703