RJF · 10-Q · 2026Q2 · Full report

Credit Risk and Loan Quality

RAYMOND JAMES FINANCIAL INC · 2026-08-05 · Importance 40 · Surprise 56

Bank credit quality remained generally strong, with nonperforming loans representing 0.27% of total loans held for sale and investment at June 30, 2026, down from 0.36% at September 30, 2025. Nine-month net charge-offs increased to $29 million from $22 million, driven primarily by C&I and CRE loans, while nonperforming assets declined to 0.22% of Bank segment assets from 0.29%. Management said prolonged market deterioration, weaker real estate values or sector-specific problems could increase nonperforming assets, credit-loss allowances and charge-offs.

Key facts

• Nonperforming loans at June 30, 2026 included $66 million of loans which were current pursuant to their contractual terms. source
• Nonperforming loans at September 30, 2025 included $109 million of loans which were current pursuant to their contractual terms. source
• Nonperforming loans as a percentage of total loans held for sale and investment at June 30, 2026: 0.27%. source
• Nonperforming loans as a percentage of total loans held for sale and investment at September 30, 2025: 0.36%. source
• Nonperforming assets as a percentage of Bank segment total assets at June 30, 2026: 0.22%. source
• Nonperforming assets as a percentage of Bank segment total assets at September 30, 2025: 0.29%. source
• Across loan funds and subscription lines, historical default rates have been low and the firm maintains an allowance for credit losses that it believes is sufficient based on the risk characteristics of this portfolio. source
• Loan funds are primarily extended to institutional sponsors and fund vehicles and are generally secured by diversified pools of senior-secured loans or other credit instruments held in bankruptcy-remote vehicles with collateral monitored by an independent custodian. source