Raymond James Financial(US:RJF)2026-02-06 22:00Assets and Liabilities - Total assets at fair value on a recurring basis as of December 31, 2025, amount to $8,829 million, with $990 million in Level 1, $7,946 million in Level 2, and $11 million in Level 3[25] - Total liabilities at fair value on a recurring basis as of December 31, 2025, amount to $1,247 million, with $416 million in Level 1, $953 million in Level 2, and $2 million in Level 3[25] - The company reported a total of $8,950 million in assets at fair value on a recurring basis as of September 30, 2025[26] - The company’s total liabilities at fair value on a recurring basis as of September 30, 2025, amount to $1,252 million[26] - Total trading assets as of December 31, 2025, are $1,530 million, which includes $92 million in Level 1 and $1,434 million in Level 2[25] - Total trading liabilities as of December 31, 2025, are $883 million, which includes $229 million in Level 1 and $654 million in Level 2[25] Securities and Investments - Available-for-sale securities as of December 31, 2025, total $6,648 million, with $429 million in Level 1 and $6,219 million in Level 2[25] - The total available-for-sale securities amounted to $6,648 million as of December 31, 2025, down from $6,888 million on September 30, 2025[46] - The company reported unrealized losses of $477 million on total securities, with $185 million in losses for securities held for less than 12 months and $5,442 million for those held for 12 months or more[51] - The total amount of tax-exempt loans remained stable at $1,148 million, with no significant changes in credit quality indicators[94] - The company has unfunded commitments of $112 million as of December 31, 2025, primarily related to renewable energy tax credit investments[144] Loans and Credit Quality - The total loans held for investment increased to $53,715 million as of December 31, 2025, up from $51,603 million as of September 30, 2025, reflecting a growth of approximately 4.1%[78] - Nonaccrual loans totaled $122 million as of December 31, 2025, compared to $109 million as of September 30, 2025, indicating an increase of approximately 11.9%[83] - The allowance for credit losses (ACL) as a percentage of total loans held for investment decreased to 0.82% as of December 31, 2025, from 0.88% as of September 30, 2025[78] - The credit quality of the bank loan portfolio shows that as of December 31, 2025, 21,461 million in SBL loans were classified as "Pass," while 54 million were classified as "Special Mention," indicating a stable credit quality[94] - Total C&I loans classified as "Pass" amounted to $10,708 million, with 15 million classified as "Special Mention," suggesting a focus on maintaining credit quality[94] Revenue and Income - Total revenues for the three months ended December 31, 2025, were $4.176 billion, with net revenues of $3.735 billion after interest expense[169] - Non-interest revenues amounted to $3.169 billion for the same period, with asset management and related administrative fees contributing $1.999 billion[169] - Net interest income for the three months ended December 31, 2025, was $569 million, compared to $529 million for the same period in 2024, reflecting an increase of 7.6%[174] - The company reported a total of $746 million in C&I loans for 2025, compared to $744 million in 2024, indicating a stable performance in this segment[95] - The company reported a total of $49 million in tax-exempt loans for 2025, consistent with the previous year's figures, indicating stability in this segment[95] Capital and Shareholder Information - As of December 31, 2025, RJF's Tier 1 capital ratio was 23.2%, exceeding the required minimum of 8.5%[181] - RJF's total capital ratio as of December 31, 2025, was 24.3%, above the required minimum of 10.5%[181] - The Board of Directors authorized common stock repurchases of up to $2 billion in December 2025, replacing the previous authorization[161] - Common shares outstanding decreased from 203.3 million at the beginning of the period to 197.0 million at the end of the period for the three months ended December 31, 2025[160] - Dividends per common share declared increased to $0.54 for the three months ended December 31, 2025, compared to $0.50 in 2024[163] Regulatory and Compliance - The effective income tax rate for the three months ended December 31, 2025, was 22.7%, higher than the 21.3% effective tax rate for fiscal year 2025[135] - The estimated upper end of the range of reasonably possible aggregate loss for legal and regulatory matters was approximately $10 million as of December 31, 2025[154] - The company has outstanding commitments to extend credit totaling $64,092 million as of December 31, 2025, compared to $62,422 million on September 30, 2025, indicating an increase of 2.68%[140] Miscellaneous - The company announced an agreement to acquire a majority stake in GreensLedge Holdings LLC, expected to close in fiscal 2026, enhancing its securitization and advisory capabilities[146] - An agreement was reached to acquire Clark Capital Management Group, expected to close in fiscal 2026, which will operate as an independent boutique investment manager within the Asset Management segment[147] - The total amount of collateral received under reverse repurchase agreements was $4,354 million as of December 31, 2025, compared to $4,003 million as of September 30, 2025[71] - The total amount of repurchase agreements increased to $368 million as of December 31, 2025, from $325 million as of September 30, 2025[67] - The company redeemed all 80,500 outstanding shares of Series B Preferred Stock on January 2, 2026, for an aggregate redemption value of $81 million[156]