REGULATORY CAPITAL REQUIREMENTS

9 Months Ended

Jun. 30, 2023

Regulatory Capital Requirement [Abstract]

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 Board of Governors of the Federal Reserve System (“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 Wall Street Reform and Consumer Protection Act. The FDIC’s capital rules, which are substantially similar to the Fed’s rules, applied to TriState Capital Bank as of June 30, 2023 and September 30, 2022. 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 June 30, 2023, 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.”

For further discussion of regulatory capital requirements applicable to certain of our businesses and subsidiaries, see Note 24 of our 2022 Form 10-K.

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 adequacy purposes				To be well-capitalized under regulatory provisions
$ in millions	Amount		Ratio		Amount		Ratio		Amount		Ratio
RJF as of June 30, 2023:
Tier 1 leverage	$	8,928	11.4	%	$	3,135	4.0	%	$	3,919	5.0	%
Tier 1 capital	$	8,928	20.6	%	$	2,607	6.0	%	$	3,476	8.0	%
CET1	$	8,852	20.4	%	$	1,955	4.5	%	$	2,824	6.5	%
Total capital	$	9,540	22.0	%	$	3,476	8.0	%	$	4,345	10.0	%

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	%

As of June 30, 2023, RJF’s regulatory capital increase compared with September 30, 2022 was driven by an increase in equity due to positive earnings, partially offset by share repurchases and dividends. RJF’s Tier 1 capital and Total capital ratios increased compared with September 30, 2022 resulting from the increase in regulatory capital and a decrease in risk-weighted assets. The decrease in risk-weighted assets was primarily driven by a decrease in assets segregated for regulatory purposes, partially offset by an increase in our bank loan portfolio.

RJF’s Tier 1 leverage ratio at June 30, 2023 increased compared to September 30, 2022 due to the increase in regulatory capital and lower average assets, primarily driven by a decrease in assets segregated for regulatory purposes.

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 adequacy purposes				To be well-capitalized under regulatory provisions
$ in millions	Amount		Ratio		Amount		Ratio		Amount		Ratio
Raymond James Bank as of June 30, 2023:
Tier 1 leverage	$	3,349	7.6	%	$	1,768	4.0	%	$	2,210	5.0	%
Tier 1 capital	$	3,349	13.6	%	$	1,476	6.0	%	$	1,967	8.0	%
CET1	$	3,349	13.6	%	$	1,107	4.5	%	$	1,599	6.5	%
Total capital	$	3,658	14.9	%	$	1,967	8.0	%	$	2,459	10.0	%

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’s regulatory capital increased compared with September 30, 2022, driven by positive earnings, partially offset by dividends paid to RJF. Raymond James Bank’s Tier 1 capital and Total capital ratios increased compared with September 30, 2022 resulting from the increase in regulatory capital and a decrease in risk-weighted assets largely due to a decrease in the bank loan and available-for-sale securities portfolios. Raymond James Bank’s Tier 1 leverage ratio at June 30, 2023 increased compared with September 30, 2022 due to the increase in regulatory capital, partially offset by an increase in average assets, primarily driven by higher cash balances.


	Actual				Requirement for capital adequacy purposes				To be well-capitalized under regulatory provisions
$ in millions	Amount		Ratio		Amount		Ratio		Amount		Ratio
TriState Capital Bank as of June 30, 2023:
Tier 1 leverage	$	1,243	7.2	%	$	695	4.0	%	$	868	5.0	%
Tier 1 capital	$	1,243	14.7	%	$	507	6.0	%	$	676	8.0	%
CET1	$	1,243	14.7	%	$	380	4.5	%	$	549	6.5	%
Total capital	$	1,283	15.2	%	$	676	8.0	%	$	845	10.0	%

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	%

TriState Capital Bank’s regulatory capital increased compared with September 30, 2022, driven by positive earnings. TriState Capital Bank’s Tier 1 capital and Total capital ratios increased compared with September 30, 2022, due to the increase in regulatory capital, partially offset by an increase in risk-weighted assets primarily resulting from increases in bank loans and available-for-sale securities. TriState Capital Bank’s Tier 1 leverage ratio at June 30, 2023 decreased slightly compared with September 30, 2022 as the increase in regulatory capital was offset by an increase in average assets, primarily driven by higher cash balances, as well as the increases in bank loans and available-for-sale securities.

Our banking subsidiaries 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 banking subsidiaries 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. The following table presents the net capital position of RJ&A.


$ in millions	June 30, 2023			September 30, 2022
Raymond James & Associates, Inc.:
(Alternative Method elected)
Net capital as a percent of aggregate debit items	43.4		%	40.9		%
Net capital	$	1,065		$	1,152
Less: required net capital	(49)			(56)
Excess net capital	$	1,016		$	1,096

As of June 30, 2023, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.