EX-99.1 2 ex99_1.htm 04-20-2011 EARNINGS RELEASE ex99_1.htm

RJF Logo
 
 

 
April 20, 2011
FOR IMMEDIATE RELEASE


RAYMOND JAMES FINANCIAL
REPORTS SECOND QUARTER RESULTS

ST. PETERSBURG, Fla. – Raymond James Financial, Inc. today reported a 45 percent increase from the prior year’s quarterly net income to $80,917,000, or $0.64 per diluted share, for its second fiscal quarter ended March 31, 2011. In comparison, the firm earned $55,628,000, or $0.45 per diluted share, for the second quarter of fiscal 2010. This quarter’s net revenue of $852,057,000 is a 16 percent increase over last year’s second fiscal quarter.

“This quarter’s record net revenue, assets under administration and assets under management demonstrate the underlying strength of the firm through this economic recovery,” stated CEO Paul Reilly.
 
“Net revenue was 5 percent higher and net income 1 percent lower than the previous quarter. Although net income was down slightly, it was in line with our expectations given positive adjustments during the first quarter,” Reilly continued.
 
“The Private Client Group led this quarter’s growth with assets under administration reaching a record $275 billion. Assets under management also grew to a record $35.6 billion due to both market appreciation and net inflows.
 
“Capital Markets had another strong quarter. Although the number of lead managed deals was up slightly sequentially, underwriting revenue was down due to smaller deal participations. However, M&A revenue was robust, making up the shortfall. Although Fixed Income commissions were down, Fixed Income produced solid results due to strong trading profits in the municipal area.
 
“Raymond James Bank loan balances were down slightly once again due to a high level of payoffs. Although the loan production and pipeline have been strong, growing the loan book continues to be challenging within our target credit/risk appetite given the high rates of payoffs.
 
“In early April, we closed on the Howe Barnes Hoefer & Arnett acquisition, and also completed a $250 million offering of 5-year senior notes.
 
“Our business results continue to improve and we are well-positioned to continue our growth and expansion,” added Reilly. “The uncertain economic outlook, global unrest and mountain of proposed regulatory rules keep our optimism in check, but we look forward to meeting these challenges.”

The company will conduct its quarterly conference call Thursday, April 21, at 8:15 a.m. ET. For a listen-only connection, visit raymondjames.com/analystcall for a live audio webcast. The subjects to be covered may include forward-looking information. Questions may be posed to management by participants on the analyst call-in line, and in response the company may disclose additional material information.

About Raymond James Financial, Inc.
 
Raymond James Financial (NYSE-RJF) is a Florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies. Its three principal wholly owned broker/dealers, Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd. have more than 5,300 financial advisors serving 1.9 million accounts in 2,400 locations throughout the United States, Canada and overseas. In addition, total client assets are approximately $275 billion, of which approximately $36 billion are managed by the firm’s asset management subsidiaries.
 
 
To the extent that Raymond James makes or publishes forward-looking statements (regarding management expectations, strategic objectives, business prospects, anticipated expense savings, financial results, anticipated results of litigation and regulatory proceedings, and other similar matters), a variety of factors, many of which are beyond Raymond James’ control, could cause actual results and experiences to differ materially from the expectations and objectives expressed in these statements. These factors are described in Raymond James’ 2010 annual report on Form 10-K and the quarterly report on Form 10-Q for the quarter ended December 31, 2010, which are available on RAYMONDJAMES.COM and SEC.GOV.
 
For more information, contact Steve Hollister at 727-567-2824.
 
Please visit the Raymond James Press Center at raymondjames.com/media.
 

 
 

 



Raymond James Financial, Inc.
Unaudited Report
(in thousands, except per share amounts)
 
   
   
Three Months Ended
 
   
March 31, 2011
   
March 31, 2010
   
% Change
   
December 31, 2010
   
% Change
 
Total Revenues
    $866,744       $749,987       16 %     $830,333       4 %
Net Revenues
    852,057       734,439       16 %     813,829       5 %
Pre-Tax Income
    126,237       89,656       41 %     130,514       (3 )%
Net Income
    80,917       55,628       45 %     81,723       (1 )%
                                         
Income for basic earnings per common share:
                                       
Net income attributable to RJF, Inc. common shareholders
    $78,293       $53,241       47 %     $78,838       (1 )%
Income for diluted earnings per common share:
                                       
Net income attributable to RJF, Inc. common shareholders
    $78,308       $53,245       47 %     $78,845       (1 )%
Earnings per common share:
                                       
Basic
    $0.64       $0.45       42 %     $0.65       (2 )%
Diluted
    $0.64       $0.45       42 %     $0.65       (2 )%
                                         

   
Six Months Ended
 
   
March 31, 2011
   
March 31, 2010
   
% Change
 
Total Revenues
    $1,697,077       $1,452,656       17 %
Net Revenues
    1,665,886       1,421,406       17 %
Pre-Tax Income
    256,751       159,044       61 %
Net Income
    162,640       98,531       65 %
                         
Income for basic earnings per common share:
                       
Net income attributable to RJF, Inc. common shareholders
    $157,128       $94,361       67
Income for diluted earnings per common share:
                       
Net income attributable to RJF, Inc. common shareholders
    $157,145       $94,367       67
Earnings per common share1:
                       
Basic
    $1.29       $0.79       63
Diluted
    $1.29       $0.79       63


   
Balance Sheet Data
 
   
March 31, 2011
   
September 30, 2010
 
Total assets
 
$ 15.3 bil.
   
$ 17.9 bil.
 
Shareholders' equity
 
$ 2,508 mil.
   
$ 2,303 mil.
 
Book value per share
    $20.42       $19.03  



 
2

 



   
Management Data
 
   
Quarter Ended
 
   
March 31, 2011
   
March 31, 2010
   
December 31, 2010
   
September 30, 2010
 
PCG Financial Advisors:
                       
United States
    4,472       4,531       4,489       4,503  
Canada
    443       444       442       442  
United Kingdom
    151       133       149       145  
                                 
# Lead managed:
                               
Corporate public offerings in U.S.
    12       9       12       7  
Corporate public offerings in Canada
    16       6       14       5  
                                 
Financial Assets Under Management:
                               
Managed Accounts (excluding
                               
Money Market Funds)
 
$ 35.6 billion
   
$ 29.3 billion
   
$ 33.4 billion
   
$ 30.0 billion
 
                                 
Client Assets Under Administration
 
$ 275 billion
   
$ 242 billion
   
$ 262 billion
   
$ 249 billion
 
Client Margin Balances
 
$1,537 million
   
$1,401 million
   
$1,511 million
   
$1,437 million
 


 
3

 




   
Three Months Ended
 
   
March 31, 2011
   
March 31, 2010
   
% Change
   
December 31, 2010
   
% Change
 
   
(in thousands)
 
Revenues:
                             
Private Client Group
    $556,632       $469,264       19 %     $519,431       7 %
Capital Markets
    177,409       149,770       18 %     173,026       3 %
Asset Management
    55,341       48,616       14 %     55,587       -  
RJ Bank
    69,099       71,530       (3 )%     77,441       (11 )%
Emerging Markets
    11,962       3,884       208 %     8,589       39 %
Securities Lending
    1,479       2,218       (33 )%     1,750       (15 )%
Proprietary Capital
    (275 )     12,683       (102 )%     670       (141 )%
Other
    3,574       2,038       75 %     3,403       5 %
Intersegment Eliminations
    (8,477 )     (10,016 )     15 %     (9,564 )     11 %
Total Revenues
    $866,744       $749,987       16 %     $830,333       4 %
                                         
Pre-Tax Income:
                                       
Private Client Group
    $45,990       $36,543       26 %     $55,740       (17 )%
Capital Markets
    33,689       21,999       53 %     24,646       37 %
Asset Management
    15,227       11,235       36 %     15,594       (2 )%
RJ Bank
    42,256       30,822       37 %     46,464       (9 )%
Emerging Markets
    1,192       (1,570 )     176 %     321       271 %
Securities Lending
    330       646       (49 )%     524       (37 )%
Proprietary Capital
    (4,032 )     (42 )  
NM
      (142 )  
NM
 
Other
    (8,415 )     (9,977 )     16 %     (12,633 )     33 %
Pre-Tax Income
    $126,237       $89,656       41 %     $130,514       (3 )%

   
Six Months Ended
 
   
March 31, 2011
   
March 31, 2010
   
$ Change
 
   
(in thousands)
 
Revenues:
                 
Private Client Group
    $1,076,063       $923,195       17 %
Capital Markets
    350,435       283,543       24 %
Asset Management
    110,928       98,614       12 %
RJ Bank
    146,540       140,452       4 %
Emerging Markets
    20,551       7,602       170 %
Securities Lending
    3,229       4,093       (21 )%
Proprietary Capital
    395       12,648       (97 )%
Other
    6,977       3,796       84 %
Intersegment Eliminations
    (18,041 )     (21,287 )     15 %
Total Revenues
    $1,697,077       $1,452,656       17 %

Pre-Tax Income:
                 
Private Client Group
    $101,730       $68,255       49 %
Capital Markets
    58,335       33,393       75 %
Asset Management
    30,821       23,301       32 %
RJ Bank
    88,720       55,459       60 %
Emerging Markets
    1,513       (2,982 )     151 %
Securities Lending
    854       1,333       (36 )%
Proprietary Capital
    (4,174 )     (854 )     (389 )%
Other
    (21,048 )     (18,861 )     (12 )%
Pre-Tax Income
    $256,751       $159,044       61 %


 
4

 




RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF INCOME
 
(UNAUDITED)
 
Quarter-to-Date
 
(in thousands, except per share amounts)
 
   
Three Months Ended
 
   
March 31, 2011
   
March 31, 2010
   
%
Change
   
December 31, 2010
   
%
Change
 
Revenues:
                             
Securities commissions and fees
    $563,710       $479,302       18 %     $534,139       6 %
Investment banking
    63,131       44,839       41 %     58,969       7 %
Investment advisory fees
    52,441       42,218       24 %     52,216       -  
Interest
    96,811       93,275       4 %     104,386       (7 )%
Net trading profits
    15,246       10,170       50 %     6,322       141 %
Financial service fees
    41,291       39,286       5 %     41,788       (1 )%
Other
    34,114       40,897       (17 )%     32,513       5 %
Total revenues
    866,744       749,987       16 %     830,333       4 %
                                         
Interest expense
    14,687       15,548       (6 )%     16,504       (11 )%
Net revenues
    852,057       734,439       16 %     813,829       5 %
                                         
Non-interest expenses:
                                       
Compensation, commissions and benefits
    579,587       497,419       17 %     551,884       5 %
Communications and information processing
    36,380       32,445       12 %     31,145       17 %
Occupancy and equipment costs
    26,773       25,892       3 %     26,229       2 %
Clearance and floor brokerage
    9,447       8,828       7 %     9,917       (5 )%
Business development
    22,820       20,614       11 %     23,945       (5 )%
Investment sub-advisory fees
    7,867       6,827       15 %     6,904       14 %
Bank loan loss provision
    8,637       19,937       (57 )%     11,232       (23 )%
Other
    36,308       28,269       28 %     25,827       41 %
Total non-interest expenses
    727,819       640,231       14 %     687,083       6 %
                                         
Income including noncontrolling interests and before provision for income taxes
    124,238       94,208       32 %     126,746       (2 )%
Provision for income taxes
    45,320       34,028       33 %     48,791       (7 )%
Net income including noncontrolling interests
    78,918       60,180       31 %     77,955       1 %
Net (loss) income attributable to noncontrolling interests
    (1,999 )     4,552       (144 )%     (3,768 )     47 %
Net income attributable to Raymond James Financial
    $80,917       $55,628       45 %     $81,723       (1 )%
                                         
Net Income per common share basic
    $0.64       $0.45       42 %     $0.65       (2 )%
Net Income per common share diluted
    $0.64       $0.45       42 %     $0.65       (2 )%
Weighted average common shares
                                       
outstanding-basic
    122,396       119,288               121,155          
Weighted average common and common equivalent shares outstanding-diluted
    123,265       119,580               121,534          


 
5

 





RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF INCOME
 
(UNAUDITED)
 
Year-to-Date
 
(in thousands, except per share amounts)
 
   
Six Months Ended
 
   
March 31, 2011
   
March 31, 2010
   
%
Change
 
Revenues:
                 
Securities commissions and fees
    $1,097,849       $948,453       16 %
Investment banking
    122,100       70,557       73 %
Investment sub-advisory fees
    104,657       86,193       21 %
Interest
    201,197       184,647       9 %
Net trading profits
    21,568       21,807       (1 )%
Financial service fees
    83,079       76,068       9 %
Other
    66,627       64,931       3 %
Total revenues
    1,697,077       1,452,656       17 %
                         
Interest expense
    31,191       31,250       -  
Net revenues
    1,665,886       1,421,406       17 %
                         
Non-interest expenses:
                       
Compensation, commissions
                       
and benefits
    1,131,471       968,498       17 %
Communications and information processing
    67,525       60,519       12 %
Occupancy and equipment costs
    53,002       52,607       1 %
Clearance and floor brokerage
    19,364       17,330       12 %
Business development
    46,765       40,495       15 %
Investment sub-advisory fees
    14,771       13,385       10 %
Bank loan loss provision
    19,869       42,772       (54 )%
Other
    62,135       64,479       (4 )%
Total non-interest expenses
    1,414,902       1,260,085       12 %
                         
Income including noncontrolling interests and before provision for income taxes
    250,984       161,321       56 %
Provision for income taxes
    94,111       60,513       56 %
Net income including noncontrolling interests
    156,873       100,808       56 %
Net (loss) income attributable to noncontrolling interests
    (5,767 )     2,277       (353 )%
Net income applicable to Raymond James Financial, Inc.
    $162,640       $98,531       65 %
                         
Net income per common share-basic
    $1.29       $0.79       63 %
Net income per common share-diluted
    $1.29       $0.79       63 %
Weighted average common shares outstanding-basic
    121,752       118,981          
Weighted average common and common equivalent shares outstanding-diluted
    122,238       119,234          


 
6

 

RJB Logo
 
Raymond James Bank, FSB (RJ Bank) is a federally chartered savings bank, regulated by the Office of Thrift Supervision (OTS), which provides residential, consumer and commercial loans, as well as FDIC-insured deposit accounts, to clients of Raymond James Financial, Inc. (RJF) broker-dealer subsidiaries and to the general public. RJ Bank also purchases residential whole loan packages to hold for investment and is active in bank participations and corporate loan syndications. RJ Bank operates from a single branch location adjacent to the Raymond James headquarters complex in St. Petersburg, Florida. RJ Bank’s deposits consist predominately of cash balances swept from the client investment accounts carried by Raymond James & Associates, Inc. (RJ&A) in the Raymond James Bank Deposit Program (RJBDP).

Corporate & Commercial Real Estate Loan Portfolio
RJ Bank's corporate and commercial real estate loan portfolio is comprised of commercial lines of credit and term loans and project finance real estate loans. Approximately 90% of the corporate loan portfolio is participations in Shared National Credits (SNC) or other large syndicated loans. The SNCs are loan syndications totaling over $20 million that are shared among three or more regulated institutions. RJ Bank is sometimes involved in the syndication of the loan at inception and some of these loans have been purchased in secondary trading markets. The remainder of the corporate loan portfolio is comprised of smaller loan participations and direct loans. Regardless of the source, all loans are independently underwritten to RJ Bank credit policies, are subject to loan committee approval, and credit quality is continually monitored by the corporate lending staff. The corporate lending staff has direct access and a regular dialogue with the borrowers’ management teams. Approximately 40% of the corporate borrowers also have a capital markets relationship with RJ&A. More than half of RJ Bank's corporate borrowers are public companies. RJ Bank's corporate loans are generally secured by all assets of the borrower and in some instances are secured by mortgages on specific real estate. In a limited number of transactions, loans in the portfolio are extended on an unsecured basis. During the most recent quarter, Corporate and Commercial Real Estate Banking closed 40 new loan transactions representing $519 million in new loan commitments.

Residential Loan Portfolio
RJ Bank's residential loan portfolio consists primarily of first mortgage loans originated by RJ Bank via referrals from RJF Private Client Group financial advisors, and first mortgage loans purchased by RJ Bank, originated by select large financial institutions. These purchased mortgage loans represent approximately 90% of RJ Bank's residential portfolio. Approximately 93% of the residential loans are fully documented loans, and 99% of the residential loan portfolio is to owner-occupant borrowers for their primary or second home residences. Virtually all of RJ Bank's residential mortgage loans are adjustable rate mortgage (ARM) loans. Approximately 45% of first lien residential mortgage loans are ARMs with interest-only payments based on a fixed rate for an initial period of the loan, typically 3-5 years, then become fully amortizing, subject to annual and lifetime interest rate caps. RJ Bank does not originate or purchase option ARM loans with negative amortization, payment options, reverse mortgages, or other types of exotic loan products. Loans with deeply discounted teaser rates are not originated or purchased. Originated 15 or 30-year fixed rate mortgages are typically sold to correspondents and only retained on an exception basis. All of RJ Bank’s residential first mortgage loans are serviced by the seller or by third party professional firms. Mortgage Banking closed and funded $51 million in retail mortgage loan production in the most recent quarter. Residential borrower credit scores at the time of origination are continuously monitored as an indicator of credit quality as the portfolio mix changes with new loans or pay downs. The most recent weighted average credit score for the residential loan portfolio was 751, virtually unchanged from prior quarters. Loan-to-value (LTV) ratios at time of origination are similarly tracked with the most recent weighted-average LTV at 65%.

Asset Quality
During the quarter, the Allowance for Loan Losses (ALL) as a percentage of total loans increased slightly from 2.34% to 2.37%. Total net loan charge-offs for the current quarter were $8.5 million, compared to the prior quarter’s $12.3 million. Net charge-offs in the corporate loan portfolio totaled $3.4 million compared to $6.4 million in the prior quarter. The remaining $5.1 million in net charge-offs were taken on residential mortgage loans, which were slightly lower than last quarter’s $5.9 million. Loan loss provision expense for the current quarter was $8.6 million, compared to the previous quarter’s provision expense of $11.2 million. Due to lower charge-offs and generally improving credit quality, less provision expense was recorded in the current quarter than in the prior quarter. Over 30 day past-due residential mortgage loans showed an improving trend as delinquencies decreased by 0.21% compared to the prior quarter’s decrease of only 0.01%. Total nonperforming loans decreased by $3.8 million during the current quarter, compared to the prior quarter’s decrease of $17.3 million, which included two sizable resolutions. Other Real Estate Owned (OREO) balances decreased during the current quarter to $20.0 million from $20.8 million. Although relatively static from quarter to quarter, there is turnover in the OREO portfolio as RJ Bank experienced 12 residential OREO sales and13 new foreclosed properties during the current quarter.

Investments
RJ Bank’s investment portfolio consists of mortgage backed securities and Federal Home Loan Bank (FHLB) stock. About 45% of the portfolio is invested in relatively short average-life floating rate government agency securities. Most of the remaining mortgage-backed securities portfolio is comprised of non-agency collateralized mortgage obligations (CMOs). Current characteristics of each security owned such as delinquency and foreclosure levels, credit enhancement, projected losses and coverage are reviewed monthly by management.

All mortgage securities are classified as Available for Sale and the fair value reported includes an aggregate pretax unrealized loss of $39.6 million. These securities have experienced losses in fair value due to ongoing economic uncertainty, the residential housing market downturn and continued illiquidity in the markets. Certain securities were considered to be other-than-temporarily impaired (OTTI) as of March 31, 2011. Even though there is no intent to sell these securities and it is highly unlikely the securities will be required to be sold, RJ Bank does not expect to recover the amortized cost basis of these securities in full, and therefore, recorded $3.2 million of OTTI loss in other revenue during the quarter. This is based on RJ Bank’s evaluation of the performance and underlying characteristics of the securities, including the level of current and estimated credit losses relative to the level of credit enhancement, which are subject to change depending on a number of factors such as economic conditions, changes in home prices, delinquency and foreclosure statistics, among others.


 
7

 

$ in thousands           UNAUDITED
 
Three Months
   
Three Months
   
Three Months
   
Three Months
   
Three Months
 
   
Ended
   
Ended
   
Ended
   
Ended
   
Ended
 
   
03/31/2011
   
12/31/2010
   
9/30/2010
   
6/30/2010
   
3/31/2010
 
Net Revenues(1)
    $65,636       $73,482 (2)     $62,097       $65,033       $66,881  
Net Interest Income
    $66,786       $74,353 (2)     $64,286       $62,466       $67,202  
Loan Loss Provision Expense
    $8,637       $11,232       $20,543       $17,098       $19,937  
Pre-tax Income
    $42,256       $46,464 (2)     $27,365       $29,185       $30,822  
Net Interest Margin
                                       
(% Earning Assets)
    3.53 %     3.70 %(2)     3.46 %     3.32 %     3.50 %
Net Interest Spread (Interest-Earning
                                       
(Assets Yield – Cost Of Funds)
    3.50 %     3.67 %(2)     3.43 %     3.29 %     3.48 %
                                         
   
As of
   
As of
   
As of
   
As of
   
As of
 
   
03/31/2011
   
12/31/2010
   
9/30/2010(8)
   
6/30/2010
   
3/31/2010
 
Total Assets
    $7,574,468       $7,570,337       $10,818,240       $7,462,415       $7,620,012  
Adjusted Total Assets(3)
                    $7,334,287                  
Total Loans, Net
    $6,028,387       $6,104,133       $6,094,929       $6,169,613       $6,236,923  
Total Deposits
    $6,711,204       $6,682,396       $7,463,671 (3)     $6,469,727       $6,731,459  
Raymond James Bank Deposit
                                       
Program Deposits (RJBDP)
    $6,433,102       $6,407,199       $6,805,412 (3)     $6,124,753       $6,399,841  
Available for Sale Securities,
                                       
at Fair Value
    $353,659       $385,153       $424,452       $424,336       $455,766  
Net Unrealized Loss on Available
                                       
For Sale Securities, Before Tax
    $(39,629 )     $(42,848 )     $(50,586 )     $(59,489 )     $(68,898 )
Tangible Common Equity/ Total
                                       
Assets
    10.84 %     10.80 %     11.71 % (7)     11.20 %     10.65 %
Total Capital (to Risk-Weighted Assets)(10)
    13.2 %     13.2 %     14.2 % (7)     13.8 %     13.6 %
Tier I Capital (to Adjusted Assets)(10)
    11.1 %     11.1 %     12.1 % (7)     11.7 %     11.2 %
Commercial Real Estate Loans(4)
    $861,067       $936,287       $1,003,181       $1,000,946       $1,091,991  
Commercial Loans(4)
    $3,506,678       $3,404,934       $3,235,746       $3,229,736       $3,061,930  
Residential/Consumer Loans(4)
    $1,849,362       $1,952,890       $2,042,095       $2,122,977       $2,269,696  
Allowance for Loan Losses
    $146,115       $146,024       $147,084       $147,091       $148,358  
Allowance for Loan Losses
                                       
(as % Loans)
    2.37 %     2.34 %     2.36 %     2.33 %     2.32 %
Net Charge-offs
    $8,546       $12,292       $20,550       $18,365       $20,743  
Nonperforming Loans(5)
    $132,830       $136,662       $153,983       $153,741       $141,214  
Other Real Estate Owned
    $19,968       $20,773       $27,925       $22,770       $25,389  
Total Nonperforming Assets(6)
    $152,798       $157,435       $181,908       $176,511       $166,603  
Nonperforming Assets
                                       
(as % of Total Assets)
    2.02 %     2.08 %     2.48 %(7)     2.37 %     2.19 %
Total Nonperforming Assets/Tangible
                                       
Common Equity + Allowance for
                                       
Loan Losses (Texas Ratio)
    15.79 %     16.34 %     18.09 %     17.95 %     17.36 %
Total Criticized Loans(9)
    $462,342       $451,046       $630,688       $623,472       $532,840  
1-4 Family Residential Loans
                                       
over 30 days past due
                                       
(as % Residential Loans)
    4.34 %     4.55 %     4.56 %     4.60 %     4.18 %
1-4 Family Mortgage
 
4.2% CA(11)
   
4.5% CA(11)
   
4.8% CA(7) (11)
   
5.1% CA(11)
   
5.5% CA(11)
 
Geographic Concentration
 
3.0% FL
   
3.1% FL
   
3.2% FL(7)
   
3.5% NY
   
3.8% NY
 
(top 5 states, dollars
 
2.6% NY
   
2.9% NY
   
3.2% NY(7)
   
3.4% FL
   
3.4% FL
 
outstanding as a
 
1.3% NJ
   
1.4% NJ
   
1.5% NJ(7)
   
1.6% NJ
   
1.7% NJ
 
percent of Adjusted Total Assets)
 
1.1% VA
   
1.1% VA
   
1.2% VA(7)
   
1.3% VA
   
1.3% VA
 
Number of Corporate Borrowers
    303       295       283       285       270  


 
8

 


Outstanding Balances of Corporate and Commercial Real Estate Loans by Industry Category at 03/31/11 (in millions)
 
       
       
Corporate Loan Portfolio
 
Commercial Real Estate Loan Portfolio
 
Telecommunications
    $348.4  
Hospitality
    $194.8  
Consumer Products/Services
    317.1  
Retail
    163.2  
Media
    240.5  
Multi-Family
    145.8  
Healthcare Providers (Non-Hospitals)
    221.6  
Office
    133.1  
Automotive/Transportation
    173.8  
Industrial Warehouse
    105.4  
Office Equipment/Business Systems
    172.3  
Mixed Use
    43.4  
Hospitals
    171.8  
Healthcare/Senior Living Facilities
    33.3  
Restaurants
    155.9  
Commercial Acquisition and
       
Defense/Government Contractors
    155.2  
Development
    23.4  
Chemicals
    149.3  
Special Purpose
    12.4  
Finance/Insurance
    139.0  
Condominium
    3.9  
Technology
    133.7  
Residential Acquisition and
       
Pharmaceuticals
    133.1  
Development
    2.3  
Gaming
    126.5  
Total Commercial Real Estate
       
Retail
    122.2  
Loan Portfolio
    $861.0 *
Energy
    114.9            
Sports
    113.8            
Natural Gas Pipeline
    100.3            
Industrial Manufacturing
    98.6  
*Of this total, $345.5 million represents loans to Real Estate
 
Mining and Minerals
    91.8  
Investment Trusts and $61.5 million represents construction
 
Food and Beverage
    79.0  
loans.
 
Private Banking
    57.9            
Environmental Services
    54.3            
Government Guaranteed SBA/USDA
    20.9            
Medical Products
    10.2            
Agriculture
    4.6            
Total Commercial Loan Portfolio
    $3,506.7            
                   
                   

(1)  
Net Revenues equal gross revenue, which includes interest income and non-interest income (including securities losses), less interest expense.
(2)  
Net Revenues, Net Interest Income and Pre-tax Income were positively impacted by a $6.4 million interest accrual error correction recorded during the quarter ended 12/31/10. This adjustment increased both Net Interest Margin and Net Interest Spread by 0.09% for the quarter ended December 31, 2010.
(3)  
At 9/30/10, total assets were adjusted to exclude the approximately $700 million in additional RJBDP deposits, which were redirected to other RJBDP participating banks in early October, 2010, the approximately $400 million in deposits from affiliates which were subsequently withdrawn on 10/01/10, and the $2.4 billion overnight FHLB advance repaid on 10/01/10. See information in footnote 8 below for additional information.
(4)  
Outstanding loan balances are shown gross of unearned income and deferred expenses.
(5)  
Nonperforming Loans includes 90+ days Past Due plus Nonaccrual Loans.
(6)  
Includes Nonperforming Loans and Other Real Estate Owned.
(7)  
Tangible Common Equity, Total Capital and Tier I Capital as well as Nonperforming Assets and Concentration ratios are presented as a percent of Adjusted Total Assets (see note 3 above). Had Total Assets (GAAP assets) been used in the calculation of these ratios at 09/30/10, the resulting disclosures would have been as follows:  Tangible Common Equity to Total Assets of 7.94%; Total Capital to Risk-Weighted Assets of 13.0%; Tier I Capital (to Adjusted Assets) of 8.2%; Nonperforming Assets to Total Assets of 1.68%; and Geographic Concentrations for CA, FL, NY, NJ, and VA of 3.3%, 2.2%, 2.1%, 1.0%, and 0.8%, respectively.
(8)  
In order to meet point-in-time regulatory balance sheet composition requirements related to its qualifying as a thrift institution at 09/30/10, RJ Bank held an additional $3.5 billion in qualifying assets funded by a $2.4 billion overnight FHLB advance, deposits of approximately $400 million from affiliates, and additional deposits of approximately $700 million from the RJBDP. The deposits from affiliates were withdrawn and the FHLB advance was repaid on 10/01/10. The RJBDP deposits were redirected to other RJBDP participating banks in early October, 2010.
(9)  
Represents the loan balance for all loans in the Special Mention, Substandard, Doubtful and Loss classifications as utilized by the banking regulators. In accordance with its accounting policy, RJ Bank does not have any loan balances within the Loss classification as loans or a portion thereof, which are considered to be uncollectible, are charged-off prior to the assignment of this classification.
(10)  
Estimated for the current quarter.
(11)  
This concentration ratio for the state of CA excludes 2.4% at 03/31/10 and 12/31/10, 2.3% at 09/30/10 and 1.5% at 06/30/10 and 03/31/10, for purchased loans that have full repurchase recourse for any delinquent loans.






 
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