REGULATORY CAPITAL REQUIREMENTS

9 Months Ended

Jun. 30, 2024

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. 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, 2024, capital levels at RJF, Raymond James Bank, and TriState Capital Bank exceeded the capital conservation buffer requirements 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 2023 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, 2024:
Tier 1 leverage	$	10,092	12.7	%	$	3,191	4.0	%	$	3,989	5.0	%
Tier 1 capital	$	10,092	22.2	%	$	2,726	6.0	%	$	3,635	8.0	%
CET1	$	10,016	22.0	%	$	2,045	4.5	%	$	2,953	6.5	%
Total capital	$	10,707	23.6	%	$	3,635	8.0	%	$	4,544	10.0	%

RJF as of September 30, 2023:
Tier 1 leverage	$	9,321	11.9	%	$	3,123	4.0	%	$	3,904	5.0	%
Tier 1 capital	$	9,321	21.4	%	$	2,613	6.0	%	$	3,484	8.0	%
CET1	$	9,245	21.2	%	$	1,960	4.5	%	$	2,831	6.5	%
Total capital	$	9,934	22.8	%	$	3,484	8.0	%	$	4,355	10.0	%

As of June 30, 2024, RJF’s regulatory capital increase compared with September 30, 2023 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, 2023 resulting from the increase in regulatory capital, partially offset by an increase in risk-weighted assets. The increase in risk-weighted assets was primarily driven by increases in brokerage client receivables, other receivables, and our investments in company-owned life insurance policies. RJF’s Tier 1 leverage ratio at June 30, 2024 increased compared to September 30, 2023 due to the increase in regulatory capital, which was partially offset by higher average assets, primarily driven by increases in average bank loans, brokerage client receivables, other receivables and other assets, including investments in company-owned life insurance policies, partially offset by a decline in our available-for-sale securities portfolio.

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, 2024:
Tier 1 leverage	$	3,392	8.2	%	$	1,654	4.0	%	$	2,068	5.0	%
Tier 1 capital	$	3,392	14.2	%	$	1,435	6.0	%	$	1,913	8.0	%
CET1	$	3,392	14.2	%	$	1,076	4.5	%	$	1,555	6.5	%
Total capital	$	3,693	15.4	%	$	1,913	8.0	%	$	2,392	10.0	%

Raymond James Bank as of September 30, 2023:
Tier 1 leverage	$	3,355	7.8	%	$	1,710	4.0	%	$	2,137	5.0	%
Tier 1 capital	$	3,355	13.7	%	$	1,465	6.0	%	$	1,954	8.0	%
CET1	$	3,355	13.7	%	$	1,099	4.5	%	$	1,587	6.5	%
Total capital	$	3,662	15.0	%	$	1,954	8.0	%	$	2,442	10.0	%

TriState Capital Bank as of June 30, 2024:
Tier 1 leverage	$	1,457	7.4	%	$	792	4.0	%	$	990	5.0	%
Tier 1 capital	$	1,457	16.5	%	$	530	6.0	%	$	707	8.0	%
CET1	$	1,457	16.5	%	$	398	4.5	%	$	575	6.5	%
Total capital	$	1,509	17.1	%	$	707	8.0	%	$	884	10.0	%

TriState Capital Bank as of September 30, 2023:
Tier 1 leverage	$	1,290	7.2	%	$	721	4.0	%	$	902	5.0	%
Tier 1 capital	$	1,290	14.8	%	$	524	6.0	%	$	699	8.0	%
CET1	$	1,290	14.8	%	$	393	4.5	%	$	568	6.5	%
Total capital	$	1,333	15.3	%	$	699	8.0	%	$	874	10.0	%

Our bank subsidiaries may pay dividends to RJF without prior approval of their regulators subject to certain restrictions including retained net income and targeted regulatory capital ratios. Dividends paid to RJF from our bank 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, 2024			September 30, 2023
Raymond James & Associates, Inc.:
(Alternative Method elected)
Net capital as a percent of aggregate debit items	33.7		%	43.3		%
Net capital	$	1,011		$	1,035
Less: required net capital	(60)			(48)
Excess net capital	$	951		$	987

As of June 30, 2024, all of our other active regulated domestic and international subsidiaries were in compliance with and exceeded all applicable capital requirements.