Raymond James Financial(RJF)2022-08-08 19:29Acquisitions - The acquisition of TriState Capital was completed on June 1, 2022, valued at $1.4 billion, integrating its banking and investment services into the company's segments [28]. - TriState Capital's acquisition included cash consideration of $359 million and the effective settlement of a $125 million note, treated as purchase consideration [31][35]. - The fair value of net identifiable assets acquired from TriState Capital was estimated at $879 million, resulting in goodwill of $529 million [35][36]. - The acquisition of Charles Stanley was completed on January 21, 2022, for £277 million ($376 million), enhancing the company's financial planning and investment advisory services in the U.K. [38]. - The fair value of net identifiable assets acquired from Charles Stanley was estimated at $212 million, resulting in goodwill of $164 million [40][41]. - The acquisition of SumRidge Partners on July 1, 2022, enhances the company's fixed income operations with additional trading technologies and risk management tools [58]. - The company acquired TriState Capital and Charles Stanley during the nine months ended June 30, 2022, resulting in goodwill and identifiable intangible assets [160]. Financial Performance - Net revenues for the three months ended June 30, 2022, were $2,782 million, an increase of 6.5% from $2,613 million in the same period of 2021 [57]. - Pre-tax income for the nine months ended June 30, 2022, was $1,575 million, up 26% from $1,252 million in the same period of 2021 [57]. - Total revenues for the three months ended June 30, 2022, were $2.778 billion, compared to $2.718 billion for the same period in 2021, reflecting a year-over-year increase [220]. - Non-interest revenues for the three months ended June 30, 2022, totaled $2.404 billion, compared to $2.404 billion for the same period in 2021, indicating stable performance [220]. - The overall financial performance reflects a robust growth trajectory across multiple revenue streams [222]. Assets and Liabilities - Total assets at fair value on a recurring basis as of June 30, 2022, amounted to $13,439 million [60]. - Total liabilities at fair value on a recurring basis as of June 30, 2022, were $537 million [60]. - The fair value of available-for-sale securities was $10,464 million, with $912 million classified as Level 1 assets [60]. - The total amount of collateral received that was available to be delivered or repledged increased to $3.830 billion as of June 30, 2022, from $3.429 billion in the previous year [113]. - The total amount of collateral posted under repurchase agreements was $437 million as of June 30, 2022, consistent with the previous year [109]. - As of June 30, 2022, total bank deposits increased to $49,887 million, up from $32,495 million as of September 30, 2021, reflecting a growth of approximately 53.8% [170][171]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses increased to $377 million as of June 30, 2022, compared to $320 million as of September 30, 2021 [119]. - The allowance for credit losses on held for investment bank loans is being closely monitored, with specific attention to changes by portfolio segment [141]. - The total provision for credit losses for the nine months ended June 30, 2022, was $66 million [143]. - The initial provision for credit losses on non-PCD loans acquired with TriState Capital Bank was $26 million [143]. - The allowance for credit losses on loans to financial advisors was $29 million as of June 30, 2022, representing 2.51% of the loan portfolio [150]. Securities and Derivatives - The fair value of Level 3 trading assets decreased to $2 million by the end of the period, with total sales and distributions amounting to $49 million [65]. - The total gross fair value of derivatives as of June 30, 2022, was $387 million in assets and $437 million in liabilities, with a notional amount of $21.739 billion [93]. - The company’s derivative assets included $84 million in interest rate matched book derivatives and $288 million in other interest rate derivatives [93]. - The company recognized insignificant gains from the sales of available-for-sale securities during the three and nine months ended June 30, 2022, compared to proceeds of $450 million and $969 million in the same periods of 2021 [89]. Revenue Streams - Asset management and related administrative fees amounted to $1.427 billion for the three months ended June 30, 2022 [220]. - Brokerage revenues for the three months ended June 30, 2022, were $513 million, compared to $385 million for the same period in 2021, showing a significant increase [220]. - Investment banking revenues for the three months ended June 30, 2022, totaled $223 million, compared to $147 million for the same period in 2021, indicating strong growth [220]. Shareholder Actions - The company repurchased 1.14 million shares for $100 million at an average price of approximately $88 per share, with approximately $900 million remaining under the share repurchase authorization as of June 30, 2022 [211]. - Dividends per common share declared increased to $0.34 for the three months ended June 30, 2022, compared to $0.26 for the same period in 2021, representing a 30.8% increase [213]. - The company issued 1.61 million shares of Series A Preferred Stock with a liquidation preference of $1,000 per share, totaling $41 million as of June 30, 2022 [206].