Financial Data and Key Metrics Changes - TriState Capital reported record net interest income of $38.7 million, up nearly 11% year-over-year, marking the 21st consecutive quarter of annual net interest income growth [22] - Total revenue reached a record $52.3 million, increasing 8.6% year-over-year and 4.8% from the previous quarter [22] - Net income for Q1 2021 grew by 28% from the linked quarter and 26% year-over-year [7] Business Line Data and Key Metrics Changes - Chartwell's assets under management (AUM) grew by 35% year-over-year to $11.2 billion, with first quarter investment management fees of $9 million up nearly 18% from the same period last year [9][10] - TriState Capital Bank's total loans increased by 23% year-over-year to $8.5 billion, with private banking loans reaching a record $5.1 billion, making up 59% of total loans [15][16] - Commercial loans rose nearly 15% year-over-year, driven by growth in commercial real estate lending [17] Market Data and Key Metrics Changes - Record deposits exceeded $9.2 billion, reflecting a 19% growth over the last 12 months, with treasury management deposits growing by 64% year-over-year [21] - Nonperforming assets (NPAs) increased by $13 million but represented only 24 basis points of total assets, indicating strong credit quality [20] Company Strategy and Development Direction - The company aims for organic total loan growth of 15% to 20% for the full year 2021, supported by strong pipelines and record loan application volumes [19] - Chartwell plans to enhance operating leverage and profitability, with expectations to grow AUM and revenue by another 50% over the next 3 to 5 years [12][40] - The company is focused on reducing risk profiles and enhancing client relationships through strategic investments in technology and distribution capabilities [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued margin expansion, projecting net interest margin (NIM) to reach mid to high 160s by year-end [29] - The management team highlighted the importance of maintaining strong credit quality and adequate reserves, with no notable trends indicating further losses [58] - The company remains optimistic about growth opportunities in both private banking and commercial lending sectors as the economy recovers [51] Other Important Information - Operating expenses grew by only 7% year-over-year, with a target of 10% to 12% growth for the full year 2021 [22][77] - The company has made significant investments in technology and compliance to support responsible growth [77] Q&A Session Summary Question: Update on net interest margin expectations - Management indicated that NIM expanded from 153 basis points at year-end to 159 basis points at the end of Q1, with expectations to reach mid to high 160s by year-end [29] Question: Drivers of strong deposit growth - Management attributed strong deposit growth to treasury management services and new client relationships, expecting service-based offerings to contribute 40% to 50% of deposit growth this year [38] Question: Expectations for Chartwell's EBITDA margins - Management expects EBITDA margins to expand as they control expenses and continue to grow AUM and revenues [41] Question: Update on financial intermediary network growth - The number of financial intermediaries increased to mid-260s, with record loan applications up 44% year-over-year, indicating strong distribution platform success [48] Question: Credit quality and NPAs - Management stated that they are adequately reserved and do not foresee trends indicating further losses, with a significant reduction in deferrals expected in the coming quarters [56][58] Question: Investment securities trends - The investment portfolio is primarily composed of AA+ rated securities, with yields expected to improve as prepayments slow [60] Question: Clarification on FDIC insurance expense - FDIC insurance expense was 4 basis points on average assets in Q1, down from 8 basis points in the previous quarter, with expectations for slight increases based on growth [70] Question: Weighted average fee rate expectations - The average fee rate may fluctuate due to the mix of new business, particularly with fixed income products having lower fees [65]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 ☐ 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) (State or other jurisdiction of incorporation or o ...