RAYMOND JAMES FINANCIAL INCRJF
RAYMOND JAMES FINANCIAL INC Fair Value Disclosure
FAIR VALUE
Our “Financial instruments” and “Financial instrument liabilities” on our Consolidated Statements of Financial Condition are recorded at fair value. See Note 2 for additional information about such instruments and our significant accounting policies related to fair value. The following tables present assets and liabilities measured at fair value on a recurring basis.
| $ in millions | Level 1 | Level 2 | Level 3 | Netting adjustments (1) | Balance as of September 30, 2025 | |||||||||||||||||||||||||||
Assets at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
| Trading assets: | ||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 6 | $ | 403 | $ | — | $ | — | $ | 409 | ||||||||||||||||||||||
Corporate obligations | 11 | 659 | — | — | 670 | |||||||||||||||||||||||||||
Government and agency obligations | 41 | 108 | — | — | 149 | |||||||||||||||||||||||||||
| Agency mortgage-backed securities (“MBS”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABS”) | — | 231 | — | — | 231 | |||||||||||||||||||||||||||
| Non-agency CMOs and ABS | — | 36 | — | — | 36 | |||||||||||||||||||||||||||
Total debt securities | 58 | 1,437 | — | — | 1,495 | |||||||||||||||||||||||||||
Equity securities | 17 | 3 | — | — | 20 | |||||||||||||||||||||||||||
Brokered certificates of deposit | — | 19 | — | — | 19 | |||||||||||||||||||||||||||
Other | — | — | 4 | — | 4 | |||||||||||||||||||||||||||
| Total trading assets | 75 | 1,459 | 4 | — | 1,538 | |||||||||||||||||||||||||||
Available-for-sale securities (2) | 430 | 6,458 | — | — | 6,888 | |||||||||||||||||||||||||||
| Derivative assets: | ||||||||||||||||||||||||||||||||
Interest rate | 2 | 304 | — | (239) | 67 | |||||||||||||||||||||||||||
Foreign exchange | — | 1 | — | — | 1 | |||||||||||||||||||||||||||
Total derivative assets | 2 | 305 | — | (239) | 68 | |||||||||||||||||||||||||||
| All other investments: | ||||||||||||||||||||||||||||||||
Government and agency obligations (3) | 92 | — | — | — | 92 | |||||||||||||||||||||||||||
| Other | 185 | 1 | 7 | — | 193 | |||||||||||||||||||||||||||
| Total all other investments | 277 | 1 | 7 | — | 285 | |||||||||||||||||||||||||||
| Other assets - client-owned fractional shares | 171 | — | — | — | 171 | |||||||||||||||||||||||||||
Subtotal | 955 | 8,223 | 11 | (239) | 8,950 | |||||||||||||||||||||||||||
Other investments - private equity - measured at NAV | 105 | |||||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 955 | $ | 8,223 | $ | 11 | $ | (239) | $ | 9,055 | ||||||||||||||||||||||
Liabilities at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
| Trading liabilities: | ||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 3 | $ | — | $ | — | $ | — | $ | 3 | ||||||||||||||||||||||
Corporate obligations | — | 651 | — | — | 651 | |||||||||||||||||||||||||||
Government and agency obligations | 164 | — | — | — | 164 | |||||||||||||||||||||||||||
| Agency MBS and CMOs | — | 42 | — | — | 42 | |||||||||||||||||||||||||||
| Total debt securities | 167 | 693 | — | — | 860 | |||||||||||||||||||||||||||
Equity securities | 31 | — | — | — | 31 | |||||||||||||||||||||||||||
| Total trading liabilities | 198 | 693 | — | — | 891 | |||||||||||||||||||||||||||
| Derivative liabilities: | ||||||||||||||||||||||||||||||||
Interest rate | 3 | 306 | — | (123) | 186 | |||||||||||||||||||||||||||
Foreign exchange | — | 2 | — | — | 2 | |||||||||||||||||||||||||||
Other | — | — | 2 | — | 2 | |||||||||||||||||||||||||||
Total derivative liabilities | 3 | 308 | 2 | (123) | 190 | |||||||||||||||||||||||||||
| Other payables - repurchase liabilities related to client-owned fractional shares | 171 | — | — | — | 171 | |||||||||||||||||||||||||||
| Total liabilities at fair value on a recurring basis | $ | 372 | $ | 1,001 | $ | 2 | $ | (123) | $ | 1,252 | ||||||||||||||||||||||
| $ in millions | Level 1 | Level 2 | Level 3 | Netting adjustments (1) | Balance as of September 30, 2024 | |||||||||||||||||||||||||||
Assets at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
| Trading assets: | ||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 2 | $ | 304 | $ | — | $ | — | $ | 306 | ||||||||||||||||||||||
Corporate obligations | 12 | 630 | — | — | 642 | |||||||||||||||||||||||||||
Government and agency obligations | 49 | 144 | — | — | 193 | |||||||||||||||||||||||||||
| Agency MBS, CMOs, and ABS | — | 205 | — | — | 205 | |||||||||||||||||||||||||||
Non-agency CMOs and ABS | — | 95 | — | — | 95 | |||||||||||||||||||||||||||
Total debt securities | 63 | 1,378 | — | — | 1,441 | |||||||||||||||||||||||||||
Equity securities | 14 | 2 | — | — | 16 | |||||||||||||||||||||||||||
Brokered certificates of deposit | — | 20 | — | — | 20 | |||||||||||||||||||||||||||
Other | — | — | 3 | — | 3 | |||||||||||||||||||||||||||
| Total trading assets | 77 | 1,400 | 3 | — | 1,480 | |||||||||||||||||||||||||||
Available-for-sale securities (2) | 704 | 7,556 | — | — | 8,260 | |||||||||||||||||||||||||||
| Derivative assets: | ||||||||||||||||||||||||||||||||
Interest rate | 3 | 335 | — | (246) | 92 | |||||||||||||||||||||||||||
| Foreign exchange | — | 7 | — | — | 7 | |||||||||||||||||||||||||||
Other | — | — | 4 | — | 4 | |||||||||||||||||||||||||||
| Total derivative assets | 3 | 342 | 4 | (246) | 103 | |||||||||||||||||||||||||||
| All other investments: | ||||||||||||||||||||||||||||||||
Government and agency obligations (3) | 91 | — | — | — | 91 | |||||||||||||||||||||||||||
| Other | 101 | 1 | 7 | — | 109 | |||||||||||||||||||||||||||
| Total all other investments | 192 | 1 | 7 | — | 200 | |||||||||||||||||||||||||||
| Other assets - client-owned fractional shares | 133 | — | — | — | 133 | |||||||||||||||||||||||||||
Subtotal | 1,109 | 9,299 | 14 | (246) | 10,176 | |||||||||||||||||||||||||||
Other investments - private equity - measured at NAV | 102 | |||||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $ | 1,109 | $ | 9,299 | $ | 14 | $ | (246) | $ | 10,278 | ||||||||||||||||||||||
Liabilities at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
| Trading liabilities: | ||||||||||||||||||||||||||||||||
Municipal and provincial obligations | $ | 5 | $ | — | $ | — | $ | — | $ | 5 | ||||||||||||||||||||||
Corporate obligations | — | 598 | — | — | 598 | |||||||||||||||||||||||||||
Government and agency obligations | 243 | 6 | — | — | 249 | |||||||||||||||||||||||||||
Agency MBS and CMOs | — | 26 | — | — | 26 | |||||||||||||||||||||||||||
Total debt securities | 248 | 630 | — | — | 878 | |||||||||||||||||||||||||||
Equity securities | 97 | 1 | — | — | 98 | |||||||||||||||||||||||||||
| Total trading liabilities | 345 | 631 | — | — | 976 | |||||||||||||||||||||||||||
| Derivative liabilities: | ||||||||||||||||||||||||||||||||
Interest rate | 3 | 343 | — | (123) | 223 | |||||||||||||||||||||||||||
Foreign exchange | — | 1 | — | — | 1 | |||||||||||||||||||||||||||
Total derivative liabilities | 3 | 344 | — | (123) | 224 | |||||||||||||||||||||||||||
| Other payables - repurchase liabilities related to client-owned fractional shares | 133 | — | — | — | 133 | |||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $ | 481 | $ | 975 | $ | — | $ | (123) | $ | 1,333 | ||||||||||||||||||||||
(1)Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Consolidated Statements of Financial Condition. See Note 5 for additional information.
(2)Our available-for-sale securities primarily consist of agency MBS, agency CMOs, and U.S. Treasuries. See Note 4 for additional information.
(3)These assets are primarily comprised of U.S. Treasuries purchased to meet certain deposit requirements with clearing organizations.
Level 3 recurring fair value measurements
The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. In the following tables, gains/(losses) on trading and derivative instruments are reported in “” and gains/(losses) on other investments are reported in “” revenues on our Consolidated Statements of Income and Comprehensive Income.
Year ended September 30, 2025 Level 3 instruments at fair value | ||||||||||||||||||||||||||||||||||||||
| Financial assets | Financial liabilities | |||||||||||||||||||||||||||||||||||||
| Trading assets | Derivative assets | Other investments | Derivative liabilities | |||||||||||||||||||||||||||||||||||
| $ in millions | Other | Other | All other | Other | ||||||||||||||||||||||||||||||||||
Fair value beginning of year | $ | 3 | $ | 4 | $ | 7 | $ | — | ||||||||||||||||||||||||||||||
Total gains/(losses) included in earnings | 3 | (2) | — | (2) | ||||||||||||||||||||||||||||||||||
Purchases and contributions | 98 | — | — | — | ||||||||||||||||||||||||||||||||||
Sales and distributions | (100) | (2) | — | — | ||||||||||||||||||||||||||||||||||
Transfers: | ||||||||||||||||||||||||||||||||||||||
Into Level 3 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Out of Level 3 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fair value end of year | $ | 4 | $ | — | $ | 7 | $ | (2) | ||||||||||||||||||||||||||||||
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | $ | — | $ | — | $ | — | $ | (2) | ||||||||||||||||||||||||||||||
Year ended September 30, 2024 Level 3 instruments at fair value | ||||||||||||||||||||||||||
| Financial assets | ||||||||||||||||||||||||||
| Trading assets | Derivative assets | Other investments | ||||||||||||||||||||||||
| $ in millions | Other | Other | Other | |||||||||||||||||||||||
Fair value beginning of year | $ | 4 | $ | — | $ | 30 | ||||||||||||||||||||
Total gains/(losses) included in earnings | — | 4 | (3) | |||||||||||||||||||||||
Purchases and contributions | 100 | — | — | |||||||||||||||||||||||
Sales and distributions | (101) | — | (20) | |||||||||||||||||||||||
Transfers: | ||||||||||||||||||||||||||
Into Level 3 | — | — | — | |||||||||||||||||||||||
| Out of Level 3 | — | — | — | |||||||||||||||||||||||
Fair value end of year | $ | 3 | $ | 4 | $ | 7 | ||||||||||||||||||||
Unrealized gains/(losses) for the year included in earnings for instruments held at the end of the year | $ | (3) | $ | 4 | $ | — | ||||||||||||||||||||
As of September 30, 2025, 10% of our assets and 2% of our liabilities were measured at fair value on a recurring basis. In comparison, as of September 30, 2024, 12% of our assets and 2% of our liabilities were measured at fair value on a recurring basis. As of both September 30, 2025 and 2024, Level 3 assets represented less than 1% of our assets measured at fair value on a recurring basis.
Investments in private equity measured at net asset value per share
As a practical expedient, we utilize NAV or its equivalent to determine the recorded value of a portion of our private equity investments portfolio. We utilize NAV when the fund investment does not have a readily determinable fair value and the NAV of the fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value.
Our private equity portfolio as of September 30, 2025 primarily included investments in third-party funds, including growth equity, venture capital, and mezzanine lending fund investments. Our investments cannot be redeemed directly with the funds.
Our investments are monetized through the liquidation of underlying assets of fund investments, the timing of which is uncertain.
The following table presents the recorded value and unfunded commitments related to our private equity investments portfolio.
| $ in millions | Recorded value | Unfunded commitment | ||||||||||||
| September 30, 2025 | ||||||||||||||
| Private equity investments measured at NAV | $ | 105 | $ | 38 | ||||||||||
| Private equity investments not measured at NAV | 7 | |||||||||||||
| Total private equity investments | $ | 112 | ||||||||||||
| September 30, 2024 | ||||||||||||||
| Private equity investments measured at NAV | $ | 102 | $ | 26 | ||||||||||
| Private equity investments not measured at NAV | 7 | |||||||||||||
Total private equity investments | $ | 109 | ||||||||||||
Financial instruments measured at fair value on a nonrecurring basis
The following table presents assets measured at fair value on a nonrecurring basis along with the valuation techniques and significant unobservable inputs used in the valuation of the assets classified as level 3. These inputs represent those that a market participant would take into account when pricing these instruments. Weighted averages are calculated by weighting each input by the relative fair value of the related financial instrument.
| $ in millions | Level 2 | Level 3 | Total fair value | Valuation technique(s) | Unobservable input | Range (weighted-average) | ||||||||||||||||||||||||||||||||
| September 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Bank loans: | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage loans | $ | 5 | $ | 7 | $ | 12 | Collateral or discounted cash flow (1) | Prepayment rate | 7 yrs. - 12 yrs. (10.5 yrs.) | |||||||||||||||||||||||||||||
| Corporate loans | $ | — | $ | 179 | $ | 179 | Collateral or discounted cash flow (1) | Recovery rate | 24% - 96% (76%) | |||||||||||||||||||||||||||||
| Loans held for sale | $ | 31 | $ | — | $ | 31 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Bank loans: | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage loans | $ | 2 | $ | 7 | $ | 9 | Collateral or discounted cash flow (1) | Prepayment rate | 7 yrs. - 12 yrs. (10.5 yrs.) | |||||||||||||||||||||||||||||
| Corporate loans | $ | — | $ | 106 | $ | 106 | Collateral or discounted cash flow (1) | Recovery rate | 0% - 37% (37%) | |||||||||||||||||||||||||||||
(1)The valuation techniques used to estimate the fair values are based on collateral value less selling costs for the collateral-dependent loans and discounted cash flows for loans that are not collateral-dependent. Unobservable inputs used in the collateral valuation technique are not meaningful and unobservable inputs used in the discounted cash flow valuation technique are presented in the table.
(2)See the “Bank loans, net - Loans held for sale” section of Note 2 of this Form 10-K for information on the valuation techniques used in the valuation of our loans held for sale measured at fair value on a nonrecurring basis.
Financial instruments not recorded at fair value
Many, but not all, of the financial instruments we hold were recorded at fair value on the Consolidated Statements of Financial Condition. The following table presents the estimated fair value and fair value hierarchy of financial assets and liabilities that are not recorded at fair value on the Consolidated Statements of Financial Condition at September 30, 2025 and 2024. This table excludes financial instruments that are carried at amounts which approximate fair value.
| $ in millions | Level 2 | Level 3 | Total estimated fair value | Carrying amount | ||||||||||||||||||||||
| September 30, 2025 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Bank loans, net | $ | 386 | $ | 50,362 | $ | 50,748 | $ | 51,345 | ||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
| Bank deposits - certificates of deposit | $ | 1,943 | $ | — | $ | 1,943 | $ | 1,937 | ||||||||||||||||||
| Senior notes payable | $ | 3,299 | $ | — | $ | 3,299 | $ | 3,520 | ||||||||||||||||||
| September 30, 2024 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Bank loans, net | $ | 183 | $ | 45,002 | $ | 45,185 | $ | 45,879 | ||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
| Bank deposits - certificates of deposit | $ | 2,623 | $ | — | $ | 2,623 | $ | 2,612 | ||||||||||||||||||
| Other borrowings - subordinated notes payable | $ | 97 | $ | — | $ | 97 | $ | 99 | ||||||||||||||||||
| Senior notes payable | $ | 1,874 | $ | — | $ | 1,874 | $ | 2,040 | ||||||||||||||||||
Short-term financial instruments: The carrying value of short-term financial instruments, such as cash and cash equivalents, including amounts segregated for regulatory purposes and restricted cash, and the majority of collateralized agreements and collateralized financings are recorded at amounts that approximate the fair value of these instruments. These financial instruments generally expose us to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market rates. Under the fair value hierarchy, cash and cash equivalents, including amounts segregated for regulatory purposes and restricted cash, are classified as Level 1 and collateralized agreements and financings are classified as Level 2.
Bank loans, net: These financial instruments are primarily comprised of loans originated or purchased by our Bank segment and include SBL, C&I loans, commercial and residential real estate loans, REIT loans, and tax-exempt loans intended to be held until maturity or payoff. These financial instruments are primarily recorded at amounts that result from the application of the accounting methodologies for loans held for investment summarized in Note 2. Certain bank loans are held for sale, which are carried at the lower of cost or market value. A portion of these loans held for sale, as well as certain held for investment loans which have been written-down, are recorded at fair value as nonrecurring fair value measurements and therefore are excluded from the preceding table.
The fair values for both variable and fixed-rate loans held for investment are estimated using a discounted cash flow analysis based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, which includes our estimate of future credit losses expected to be incurred. The majority of these loans are classified as Level 3 under the fair value hierarchy. Refer to Note 2 for information regarding the fair value policies specific to loans held for sale.
Receivables and other assets: Brokerage client receivables, other receivables, and certain other assets are recorded at amounts that approximate fair value and are classified as Levels 2 and 3 under the fair value hierarchy. As specified under GAAP, the FHLB and FRB stock are recorded at cost, which we have determined to approximate their estimated fair value, and are classified as Level 2 under the fair value hierarchy.
Loans to financial advisors, net: These financial instruments are primarily comprised of loans to financial advisors, primarily offered for recruiting and retention purposes. Loans to financial advisors, net are recorded at amounts that approximate fair value and are classified as Level 2 under the fair value hierarchy. Refer to Note 2 for information regarding loans to financial advisors, net.
Bank deposits: The fair values for demand deposits are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of money market and savings accounts approximate their fair values as substantially all of these deposits are variable-rate accounts and short-term in nature. Demand deposits and money market and savings accounts are classified as Level 2 under the fair value hierarchy. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies current interest rates based on the remaining term of the deposit. Fixed-rate certificates of deposit were classified as Level 2 under the fair value hierarchy.
Payables: Brokerage client payables, accrued compensation, commissions and benefits, and other payables are recorded at amounts that approximate fair value and are classified as Level 2 under the fair value hierarchy.
Other borrowings: Other borrowings primarily included our Bank segment’s borrowings from the FHLB and, as of September 30, 2024, our 5.75% fixed-to-floating subordinated notes due 2030, which were redeemed on August 15, 2025. FHLB advances generally reflect terms that approximate current market rates for similar loans and therefore, their carrying value approximates fair value. Our FHLB advances were classified as Level 2 under the fair value hierarchy. The fair value of the subordinated notes as of September 30, 2024 was estimated by discounting scheduled cash flows through the estimated maturity using market rates for borrowings of similar maturities and was classified as Level 2 under the fair value hierarchy.
Senior notes payable: The fair value of our senior notes payable is calculated based upon recent trades of those debt securities in the market. Our senior notes payable are classified as Level 2 under the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 25, 2025 | Showing above |
| 2024 | Nov 26, 2024 | |
| 2023 | Nov 21, 2023 | |
| 2022 | Nov 22, 2022 | |
| 2021 | Nov 23, 2021 | |
| 2020 | Nov 24, 2020 | |
| 2019 | Nov 26, 2019 | |
| 2018 | Nov 21, 2018 | |
| 2017 | Nov 22, 2017 | |
| 2016 | Nov 22, 2016 | |
| 2015 | Nov 25, 2015 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.