SHAREHOLDERS' EQUITY

12 Months Ended

Sep. 30, 2024

Equity [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Preferred stock

As a component of our total purchase consideration for TriState Capital on June 1, 2022, we issued two series of preferred stock to replace previously issued and outstanding preferred stock of TriState Capital. See Note 3 for additional information about the acquisition. The preferred stock issuance included 1.61 million depositary shares, each representing a 1/40th interest in a share of Series A Preferred Stock, par value of $0.10 per share, with a liquidation preference of $1,000 per share (equivalent of $25 per depositary share) and 3.22 million depositary shares, each representing a 1/40th interest in a share of Series B Preferred Stock, par value of $0.10 per share, with a liquidation preference of $1,000 per share (equivalent of $25 per depositary share). We redeemed all outstanding shares of our Series A Preferred Stock on April 3, 2023.

Dividends on Series B Preferred Stock are non-cumulative and, if declared, payable quarterly at a rate of 6.375% per annum from original issue date up to, but excluding, July 1, 2026, and thereafter at a floating rate equal to 3-month CME Term SOFR plus a spread adjustment of 4.35% per annum. Under certain circumstances, the aforementioned fixed rate may apply in lieu of the floating rate. Subject to requisite regulatory approvals, we may redeem the Series B Preferred Stock, in whole or in part, at the liquidation preference plus declared and unpaid dividends.

The following table details the shares outstanding, carrying value, and aggregate liquidation preference of our preferred stock.

$ in millions	September 30, 2024		September 30, 2023
Series B Preferred Stock:
Shares outstanding	80,500		80,500
Carrying value	$	79	$	79
Aggregate liquidation preference	$	81	$	81

The following table details dividends declared and dividends paid on our Series A and Series B preferred stock for the years ended September 30, 2024, 2023, and 2022.

	Dividends declared				Dividends paid
$ in millions, except per share amounts	Total dividends		Per preferred share amount		Total dividends		Per preferred share amount
Year ended September 30, 2024
Series B Preferred Stock	$	5	$	63.76	$	5	$	63.76
Year ended September 30, 2023
Series A Preferred Stock (1)	$	2	$	33.76	$	2	$	50.64
Series B Preferred Stock	5		$	63.76	5		$	63.76
Total	$	7			$	7
Year ended September 30, 2022
Series A Preferred Stock	$	1	$	33.75	$	1	$	16.88
Series B Preferred Stock	3		$	31.88	1		$	15.94
Total	$	4			$	2

(1)On April 3, 2023, we redeemed all 40,250 outstanding shares of our Series A Preferred Stock with a carrying value of $41 million, which triggered the redemption of the related depositary shares, each representing a 1/40th interest of a share of Series A Preferred Stock, for an aggregate redemption value of $40 million. Preferred stock dividends on our Consolidated Statements of Income and Comprehensive Income for the year ended September 30, 2023 included dividends declared during the year, as well as the $1 million excess of the carrying value of our Series A Preferred Stock over the redemption value, which was reported as an offset to preferred dividends and increased net income available to common shareholders.

Common equity

The following table presents the changes in our common shares outstanding for the years ended September 30, 2024, 2023, and 2022.

	Year ended September 30,
Shares in millions	2024	2023	2022
Balance beginning of year	208.8	215.1	205.7
Repurchases of common stock under the Board of Directors’ common stock repurchase authorization	(7.7)	(8.4)	(1.7)
Issuances due to vesting of RSUs, employee stock purchases, and exercise of stock options, net of forfeitures	2.2	2.1	2.6
Common stock issued for TriState Capital acquisition (1)	—	—	8.5
Balance end of year	203.3	208.8	215.1

(1)On June 1, 2022, in conjunction with our acquisition of TriState Capital we issued 7.97 million shares of common stock as a component of the purchase consideration in the settlement of TriState Capital common stock and 551 thousand RSAs. See Note 3 for additional information on the TriState Capital acquisition and Note 23 for additional information on the RSAs and common stock issuances made under our share-based compensation programs.

We issue shares from time to time during the year to satisfy obligations under certain of our share-based compensation programs, some of which may be reissued out of treasury shares. See Note 23 for additional information on these programs.

Share repurchases

We repurchase shares of our common stock from time to time for a number of reasons, including to offset dilution, which could arise from share issuances resulting from share-based compensation programs or acquisitions. In November 2023, our Board of Directors authorized common stock repurchases of up to $1.5 billion, which replaced the previous authorization. Our share repurchases are effected primarily through regular open-market purchases, typically under a SEC Rule 10b-18 plan, the amounts and timing of which are determined primarily by our current and projected capital position, applicable legal and regulatory constraints, general market conditions and the price and trading volumes of our common stock. During the year ended September 30, 2024, we repurchased 7.7 million shares of our common stock for $900 million at an average price of $116.96 per share under the Board of Directors’ common stock repurchase authorization. As of September 30, 2024, $644 million remained available under the Board of Directors’ common stock repurchase authorization.

Common stock dividends

Dividends per common share declared and paid are detailed in the following table for each respective period.

	Year ended September 30,
	2024		2023		2022
Dividends per common share - declared	$	1.80	$	1.68	$	1.36
Dividends per common share - paid	$	1.77	$	1.60	$	1.28

Our dividend payout ratio is detailed in the following table for each respective period and is computed by dividing dividends declared per common share by earnings per diluted common share.

	Year ended September 30,
	2024		2023		2022
Dividend payout ratio	18.6	%	21.1	%	19.5	%

We expect to continue paying cash dividends; however, the payment and rate of dividends on our common stock are subject to several factors including our operating results, financial and regulatory requirements or restrictions, and the availability of funds from our subsidiaries, including our broker-dealer and bank subsidiaries, which may also be subject to restrictions under regulatory capital rules. The availability of funds from subsidiaries may also be subject to restrictions contained in loan covenants of certain broker-dealer loan agreements and restrictions by bank regulators on dividends to the parent from our bank subsidiaries. See Note 24 for additional information on our regulatory capital requirements.

Accumulated other comprehensive income/(loss)

All of the components of OCI, net of tax, were attributable to RJF. The following table presents the net change in AOCI as well as the changes, and the related tax effects, of each component of AOCI.

$ in millions	Net investment hedges		Currency translations		Subtotal: net investment hedges and currency translations		Available-for-sale securities		Cash flow hedges		Total
Year ended September 30, 2024
AOCI as of beginning of year	$	143	$	(216)	$	(73)	$	(942)	$	44	$	(971)
OCI:
OCI before reclassifications and taxes	2		47		49		606		(14)		641
Amounts reclassified from AOCI, before tax	—		—		—		—		(35)		(35)
Pre-tax net OCI	2		47		49		606		(49)		606
Income tax effect	—		—		—		(149)		12		(137)
OCI for the year, net of tax	2		47		49		457		(37)		469
AOCI as of end of year	$	145	$	(169)	$	(24)	$	(485)	$	7	$	(502)
Year ended September 30, 2023
AOCI as of beginning of year	$	153	$	(276)	$	(123)	$	(902)	$	43	$	(982)
OCI:
OCI before reclassifications and taxes	(14)		60		46		(37)		33		42
Amounts reclassified from AOCI, before tax	—		—		—		—		(32)		(32)
Pre-tax net OCI	(14)		60		46		(37)		1		10
Income tax effect	4		—		4		(3)		—		1
OCI for the year, net of tax	(10)		60		50		(40)		1		11
AOCI as of end of year	$	143	$	(216)	$	(73)	$	(942)	$	44	$	(971)
Year ended September 30, 2022
AOCI as of beginning of year	$	81	$	(90)	$	(9)	$	(5)	$	(27)	$	(41)
OCI:
OCI before reclassifications and taxes	95		(186)		(91)		(1,208)		85		(1,214)
Amounts reclassified from AOCI, before tax	—		—		—		—		9		9
Pre-tax net OCI	95		(186)		(91)		(1,208)		94		(1,205)
Income tax effect	(23)		—		(23)		311		(24)		264
OCI for the year, net of tax	72		(186)		(114)		(897)		70		(941)
AOCI as of end of year	$	153	$	(276)	$	(123)	$	(902)	$	43	$	(982)

Reclassifications from AOCI to net income, excluding taxes, for the year ended September 30, 2024, 2023, and 2022 were recorded in “Interest expense” on the Consolidated Statements of Income and Comprehensive Income.

Our net investment hedges and cash flow hedges relate to derivatives associated with our Bank segment. See Notes 2 and 6 for additional information on these derivatives.