Raymond James Financial(RJF) - 2025 Q1 - Quarterly Report

Assets and Liabilities - Total trading assets amounted to $1,459 million as of December 31, 2024, with a significant portion in debt securities totaling$1,418 million[26]. - Available-for-sale securities reached $7,727 million, primarily consisting of agency MBS, agency CMOs, and U.S. Treasuries[29]. - Total assets at fair value on a recurring basis were$9,715 million, with Level 1 assets at $1,046 million and Level 2 assets at$8,857 million[26]. - Total liabilities at fair value on a recurring basis were $1,304 million, with trading liabilities accounting for$835 million[26]. - The company reported a total of $10,278 million in assets at fair value on a recurring basis as of September 30, 2024[28]. - The fair value of Level 3 trading assets decreased to$2 million, while Level 3 derivative liabilities were recorded at $2 million[32]. - The total estimated fair value of bank loans, net, was$46,065 million as of December 31, 2024, compared to $45,185 million on September 30, 2024[43]. - The total available-for-sale securities fair value decreased from$8,260 million on September 30, 2024, to $7,727 million on December 31, 2024[46]. - The total amount of collateral received under reverse repurchase agreements was$3,770 million as of December 31, 2024, slightly down from $3,800 million on September 30, 2024[74]. - The total amount of collateral pledged with the FHLB or FRB was$17,493 million as of December 31, 2024, compared to $15,773 million on September 30, 2024[77]. Financial Performance - Total revenues for the three months ended December 31, 2024, were$4,035 million, an increase from $3,520 million in the same period of 2023, representing a growth of approximately 14.6$3,008 million, compared to $2,467 million in 2023, reflecting a year-over-year increase of about 21.9$1,743 million in Q4 2024, up from $1,407 million in Q4 2023, marking a growth of approximately 23.8$559 million in Q4 2024 from $522 million in Q4 2023, showing a rise of about 7.1$325 million in Q4 2024, compared to $181 million in Q4 2023, indicating a significant increase of approximately 79.0$1,027 million, slightly down from $1,053 million in the same period of 2023[185]. - Net interest income after bank loan provision for credit losses was$529 million for Q4 2024, compared to $534 million in Q4 2023[185]. - The company reported a net change in accumulated other comprehensive income (AOCI) as of December 31, 2024, totaling$(655) million[174]. - The company’s total dividends paid for the three months ended December 31, 2024, were $1 million, consistent with the previous year[166]. Loans and Credit Quality - Total loans held for investment increased to$47,424 million as of December 31, 2024, up from $46,267 million on September 30, 2024[82]. - The allowance for credit losses (ACL) as a percentage of total loans held for investment was 0.95$7 million as of December 31, 2024, with nonaccrual loans totaling $131 million[88]. - The credit quality of the bank loan portfolio includes loans classified as "criticized," which are under close management attention due to potential weaknesses[99]. - The company reported$72 million of nonaccrual loans that were current as of December 31, 2024[88]. - The total amount of residential mortgage loans held for investment was $9,602 million as of December 31, 2024[88]. - The company has maintained a consistent credit quality with no significant changes in the allowance for credit losses across different loan segments[106]. - The provision for credit losses for the three months ended December 31, 2024 reflected an improved macroeconomic forecast and loan repayments, offset by provisions on new loans and charge-offs of certain loans[107]. Shareholder Information - The balance of common shares outstanding as of December 31, 2024, was 204.6 million, a decrease from 208.7 million in the same period of 2023[168]. - During the three months ended December 31, 2024, the company repurchased 310 thousand shares of common stock for$50 million at an average price of $161.13 per share[169]. - Dividends per common share declared increased to$0.50 in 2024 from $0.45 in 2023, while dividends paid rose to$0.45 from $0.42[171]. - The dividend payout ratio for the three months ended December 31, 2024, was 17.5$1.45 billion remained available under the Board of Directors' common stock repurchase authorization[169]. Regulatory and Legal Matters - The company continues to face significant litigation and regulatory scrutiny, with no assurance that material losses will not be incurred from unasserted claims[161]. - As of December 31, 2024, the estimated upper end of the range of reasonably possible aggregate loss for legal and regulatory matters is approximately $30 million[163]. Capital and Liquidity - RJF's Tier 1 capital ratio was 23.7%, exceeding the required 8.5%[194]. - RJF's total capital ratio stood at 25.0%, well above the required 10.5%[194]. - For Raymond James Bank, the Tier 1 leverage ratio was 8.2%, above the required 4.0%[198]. - The company emphasizes the importance of forward-looking statements regarding future strategic objectives and financial results[221]. - The management discusses anticipated savings and financial results, including expenses and earnings, as part of their strategic outlook[221]. - The management's discussion includes a focus on liquidity and capital resources, indicating ongoing financial health[219].