UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
	THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
	THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-9109

RAYMOND JAMES FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Florida	59-1517485
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

880 Carillon Parkway, St. Petersburg, Florida 33716

(Address of principal executive offices)    (Zip Code)

(727) 567-1000

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	RJF	New York Stock Exchange
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	RJF PrB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐                              No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

211,910,694 shares of common stock as of May 4, 2023

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

INDEX
		PAGE
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Statements of Financial Condition (Unaudited)	3
	Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)	4
	Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)
	Note 1 - Organization and basis of presentation	8
	Note 2 - Update of significant accounting policies	8
	Note 3 - Fair value	9
	Note 4 - Available-for-sale securities	15
	Note 5 - Derivative assets and derivative liabilities	18
	Note 6 - Collateralized agreements and financings	20
	Note 7 - Bank loans, net	23
	Note 8 - Loans to financial advisors, net	30
	Note 9 - Variable interest entities	30
	Note 10 - Goodwill and identifiable intangible assets, net	31
	Note 11 - Other assets	32
	Note 12 - Leases	32
	Note 13 - Bank deposits	33
	Note 14 - Other borrowings	34
	Note 15 - Income taxes	34
	Note 16 - Commitments, contingencies and guarantees	35
	Note 17 - Shareholders’ equity	37
	Note 18 - Revenues	40
	Note 19 - Interest income and interest expense	44
	Note 20 - Share-based compensation	44
	Note 21 - Regulatory capital requirements	45
	Note 22 - Earnings per share	48
	Note 23 - Segment information	49
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	51
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	94
Item 4.	Controls and Procedures	94
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	95
Item 1A.	Risk Factors	95
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	95
Item 3.	Defaults Upon Senior Securities	95
Item 4.	Mine Safety Disclosures	95
Item 5.	Other Information	95
Item 6.	Exhibits	96
	Signatures	97

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

$ in millions, except per share amounts	March 31, 2023		September 30, 2022
Assets:
Cash and cash equivalents	$	8,663	$	6,178
Assets segregated for regulatory purposes and restricted cash	4,697		8,481
Collateralized agreements	379		704
Financial instruments, at fair value:
Trading assets ($935 and $1,188 pledged as collateral)	993		1,270
Available-for-sale securities ($26 and $74 pledged as collateral)	9,773		9,885
Derivative assets	91		188
Other investments ($21 and $14 pledged as collateral)	318		292
Brokerage client receivables, net	2,575		2,934
Other receivables, net	1,711		1,615
Bank loans, net	43,683		43,239
Loans to financial advisors, net	1,108		1,152
Deferred income taxes, net	573		630
Goodwill and identifiable intangible assets, net	1,932		1,931
Other assets	2,684		2,452
Total assets	$	79,180	$	80,951
Liabilities and shareholders’ equity:
Bank deposits	$	54,229	$	51,357
Collateralized financings	327		466
Financial instrument liabilities, at fair value:
Trading liabilities	710		836
Derivative liabilities	351		530
Brokerage client payables	6,848		11,446
Accrued compensation, commissions and benefits	1,461		1,787
Other payables	1,597		1,768
Other borrowings	1,650		1,291
Senior notes payable	2,038		2,038
Total liabilities	69,211		71,519
Commitments and contingencies (see Note 16)
Shareholders’ equity
Preferred stock	120		120
Common stock; $.01 par value; 650,000,000 shares authorized; 248,323,901 shares issued and 211,581,156 shares outstanding as of March 31, 2023; 248,018,564 shares issued and 215,122,523 shares outstanding as of September 30, 2022	2		2
Additional paid-in capital	3,035		2,987
Retained earnings	9,590		8,843
Treasury stock, at cost; 36,742,745 and 32,896,041 common shares as of March 31, 2023 and September 30, 2022, respectively	(1,954)		(1,512)
Accumulated other comprehensive loss	(798)		(982)
Total equity attributable to Raymond James Financial, Inc.	9,995		9,458
Noncontrolling interests	(26)		(26)
Total shareholders’ equity	9,969		9,432
Total liabilities and shareholders’ equity	$	79,180	$	80,951

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

3

RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

	Three months ended March 31,				Six months ended March 31,
in millions, except per share amounts	2023		2022		2023		2022
Revenues:
Asset management and related administrative fees	$	1,302	$	1,464	$	2,544	$	2,846
Brokerage revenues:
Securities commissions	369		422		721		847
Principal transactions	127		142		259		275
Total brokerage revenues	496		564		980		1,122
Account and service fees	258		179		547		356
Investment banking	154		235		295		660
Interest income	915		242		1,742		467
Other	32		27		76		78
Total revenues	3,157		2,711		6,184		5,529
Interest expense	(284)		(38)		(525)		(75)
Net revenues	2,873		2,673		5,659		5,454
Non-interest expenses:
Compensation, commissions and benefits	1,820		1,852		3,556		3,736
Non-compensation expenses:
Communications and information processing	153		127		292		239
Occupancy and equipment	68		62		134		121
Business development	54		34		110		69
Investment sub-advisory fees	36		40		70		78
Professional fees	38		27		70		55
Bank loan provision for credit losses	28		21		42		10
Other	119		77		176		155
Total non-compensation expenses	496		388		894		727
Total non-interest expenses	2,316		2,240		4,450		4,463
Pre-tax income	557		433		1,209		991
Provision for income taxes	130		110		273		222
Net income	427		323		936		769
Preferred stock dividends	2		—		4		—
Net income available to common shareholders	$	425	$	323	$	932	$	769
Earnings per common share – basic	$	1.97	$	1.56	$	4.33	$	3.71
Earnings per common share – diluted	$	1.93	$	1.52	$	4.23	$	3.61
Weighted-average common shares outstanding – basic	214.3		207.7		214.5		207.0
Weighted-average common and common equivalent shares outstanding – diluted	219.2		213.0		219.7		212.6