Raymond James Financial : Q1 2020 ending December 31, 2019 Earnings Supplement

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EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER

FISCAL YEAR 2020 RESULTS

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RAYMOND JAMES FINANCIAL, INC.

Consolidated Statements of Income (Unaudited)

						Three months ended						% change from
in millions, except per share amounts		December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
		2018			2019			2019			2019			2019	2018	2019
Revenues:
Asset management and related administrative fees	$	865	$	783	$	879	$	924	$	955	10 %	3 %
Brokerage revenues:
Securities commissions			388			349			358			355			363	(6)%	2 %
Principal transactions			76			93			93			95			97	28 %	2 %
Total brokerage revenues			464			442			451			450			460	(1)%	2 %
Account and service fees			185			191			183			179			178	(4)%	(1)%
Investment banking			137			163			139			157			141	3 %	(10)%
Interest income			316			324			321			320			297	(6)%	(7)%
Other			37			31			27			55			29	(22)%	(47)%
Total revenues			2,004			1,934			2,000			2,085			2,060	3 %	(1)%
Interest expense			(73)			(75)			(73)			(62)			(51)	(30)%	(18)%
Net revenues			1,931			1,859			1,927			2,023			2,009	4 %	(1)%
Non-interest expenses:
Compensation, commissions and benefits			1,265			1,225			1,277			1,320			1,351	7 %	2 %
Non-compensation expenses:
Communications and information processing			92			94			92			95			94	2 %	(1)%
Occupancy and equipment			51			53			55			59			57	12 %	(3)%
Business development			43			41			57			53			44	2 %	(17)%
Investment sub-advisory fees			24			22			24			24			26	8 %	8 %
Professional fees			22			17			22			24			21	(5)%	(13)%
Bank loan loss provision/(benefit)			16			5			(5)			6			(2)		NM		NM
Acquisition and disposition-related expenses (1)			15			-			-			-			-	(100)%		-
Other (2) (3)			71			55			63			88			59	(17)%	(33)%
Total non-compensation expenses			334			287			308			349			299	(10)%	(14)%
Total non-interest expenses			1,599			1,512			1,585			1,669			1,650	3 %	(1)%
Pre-tax income			332			347			342			354			359	8 %	1 %
Provision for income taxes			83			86			83			89			91	10 %	2 %
Net income		$	249		$	261		$	259		$	265		$	268	8 %	1 %
Earnings per common share - basic (4)
	$	1.73		$	1.85		$	1.84		$	1.90		$	1.93	12 %	2 %
Earnings per common share - diluted (4)											12 %	2 %
	$	1.69		$	1.81		$	1.80		$	1.86		$	1.89
Weighted-average common shares outstanding - basic																(4)%		-
		144.2			140.8			140.4			138.6			138.3
Weighted-average common and common equivalent shares
		147.3			143.9			143.6			141.8			141.5	(4)%		-
outstanding - diluted

Please refer to the footnotes at the end of this supplement for additional information.

2

RAYMOND JAMES FINANCIAL, INC.

Selected Key Metrics (Unaudited)

									As of								% change from
Total company ($ in millions, except per share amounts)		December 31,			March 31,			June 30,		September 30,		December 31,	December 31,		September 30,
		2018			2019			2019			2019			2019		2018		2019
Total assets	$	38,544	$	38,176	$	38,677	$	38,830	$	40,154		4 %	3 %
Total equity attributable to Raymond James Financial, Inc.	$	6,143	$	6,366	$	6,502	$	6,581	$	6,842		11 %	4 %
Book value per share (5)	$	43.69	$	45.34	$	46.54	$	47.76	$	49.26		13 %	3 %
Tangible book value per share (5) (6)	$	39.43	$	41.10	$	42.18	$	43.53	$	45.10		14 %	4 %
Capital ratios:
Tier 1 capital			23.6%			24.3%			24.2%			24.8%			24.8% (7)
Total capital			24.7%			25.3%			25.2%			25.8%			25.7% (7)
Tier 1 leverage			14.6%			15.1%			15.7%			15.7%			15.8% (7)
						Three months ended						% change from
		December 31,			March 31,			June 30,		September 30,		December 31,	December 31,		September 30,
			2018			2019			2019			2019			2019		2018		2019
Adjusted pre-tax income (6)	$	347			NA			NA	$	373			NA	3 %	(4)%
Adjusted net income (6)	$	264			NA			NA	$	284			NA	2 %	(6)%
Adjusted earnings per common share - basic (4) (6)	$	1.83			NA			NA	$	2.04			NA	5 %	(5)%
Adjusted earnings per common share - diluted (4) (6)	$	1.79			NA			NA	$	2.00			NA	6 %	(6)%
Return on equity (8)			15.9%			16.7%			16.1%			16.2%			16.0%
Adjusted return on equity (6) (8)			16.9%			NA			NA			17.3%			NA
Return on tangible common equity (6) (8)			17.6%			18.5%			17.8%			17.8%			17.5%
Adjusted return on tangible common equity (6) (8)			18.7%			NA			NA			19.1%			NA
Pre-tax margin (9)			17.2%			18.7%			17.7%			17.5%			17.9%
Adjusted pre-tax margin (6) (9)			18.0%			NA			NA			18.4%			NA
Total compensation ratio (10)			65.5%			65.9%			66.3%			65.2%			67.2%
Effective tax rate			25.2%			25.4%			24.4%			25.1%			25.3%

Please refer to the footnotes at the end of this supplement for additional information.

3

RAYMOND JAMES FINANCIAL, INC.

Selected Key Metrics (Unaudited)

									As of								% change from
		December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
			2018			2019			2019			2019			2019	2018	2019
Client asset metrics ($ in billions):
Client assets under administration	$	725.4	$	796.0	$	824.2	$	838.3	$	896.0	24 %	7 %
Private Client Group assets under administration	$	690.7	$	760.0	$	787.4	$	798.4	$	855.2	24 %	7 %
Private Client Group assets in fee-based accounts	$	338.8	$	378.4	$	398.0	$	409.1	$	444.2	31 %	9 %
Financial assets under management	$	126.5	$	138.5	$	143.1	$	143.1	$	151.7	20 %	6 %
Clients' domestic cash sweep balances ($ in millions):
Raymond James Bank Deposit Program ("RJBDP"): (11)
Raymond James Bank	$	21,138	$	21,023	$	21,600	$	21,649	$	21,891	4 %	1 %
Third-party banks			18,320			14,343			14,425			14,043			15,061	(18)%	7 %
Subtotal RJBDP			39,458			35,366			36,025			35,692			36,952	(6)%	4 %
Money market funds (12)			4,436			4,001			-			-			-	(100)%		-
Client Interest Program			2,935			2,349			2,130			2,022			2,528	(14)%	25 %
Total clients' domestic cash sweep balances	$	46,829	$	41,716	$	38,155	$	37,714	$	39,480	(16)%	5 %
Average yield on RJBDP - third-party banks (13)																(6)%	(10)%
		1.74%			2.00%			1.95%			1.83%			1.64%
Private Client Group financial advisors:
Employees			3,166			3,192			3,228			3,301			3,331	5 %	1 %
Independent contractors			4,649			4,670			4,676			4,710			4,729	2 %		-
Total advisors			7,815			7,862			7,904			8,011			8,060	3 %	1 %

Please refer to the footnotes at the end of this supplement for additional information.

4

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Private Client Group (Unaudited)

						Three months ended						% change from
$ in millions		December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
		2018			2019			2019			2019			2019	2018	2019
Revenues:
Asset management and related administrative fees	$	707	$	638	$	718	$	757	$	782	11 %	3 %
Brokerage revenues:
Mutual and other fund products			157			145			147			150			144	(8)%	(4)%
Insurance and annuity products			104			99			105			104			101	(3)%	(3)%
Equities, ETFs, and fixed income products			103			94			94			87			102	(1)%	17 %
Total brokerage revenues			364			338			346			341			347	(5)%	2 %
Account and service fees:
Mutual fund and annuity service fees			83			82			85			84			90	8 %	7 %
RJBDP fees: (11)
Third-party banks			68			80			67			65			58	(15)%	(11)%
Raymond James Bank			41			42			44			46			47	15 %	2 %
Client account and other fees			33			27			32			30			29	(12)%	(3)%
Total account and service fees			225			231			228			225			224		-		-
Investment banking			7			8			10			7			11	57 %	57 %
Interest income			56			58			56			55			49	(13)%	(11)%
All other			7			9			3			7			9	29 %	29 %
Total revenues			1,366			1,282			1,361			1,392			1,422	4 %	2 %
Interest expense			(10)			(11)			(10)			(11)			(8)	(20)%	(27)%
Net revenues			1,356			1,271			1,351			1,381			1,414	4 %	2 %
Non-interest expenses:
Financial advisor compensation and benefits			803			750			805			832			857	7 %	3 %
Administrative compensation and benefits			229			234			237			233			247	8 %	6 %
Total compensation, commissions and benefits			1,032			984			1,042			1,065			1,104	7 %	4 %
Non-compensation expenses			160			155			169			173			157	(2)%	(9)%
Total non-interest expenses			1,192			1,139			1,211			1,238			1,261	6 %	2 %
Pre-tax income	$	164	$	132	$	140	$	143	$	153	(7)%	7 %
Pre-tax margin
		12.1%			10.4%			10.4%			10.4%			10.8%

Please refer to the footnotes at the end of this supplement for additional information.

5

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Capital Markets (Unaudited)

						Three months ended						% change from
$ in millions		December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
		2018			2019			2019			2019			2019	2018	2019
Revenues:
Brokerage revenues:
Fixed income	$	57	$	71	$	73	$	82	$	81	42 %	(1)%
Equity			42			32			31			26			34	(19)%	31 %
Total brokerage revenues			99			103			104			108			115	16 %	6 %
Investment banking:
Merger & acquisition and advisory			85			121			80			93			60	(29)%	(35)%
Equity underwriting			27			18			27			28			39	44 %	39 %
Debt underwriting			17			17			22			29			31	82 %	7 %
Total investment banking			129			156			129			150			130	1 %	(13)%
Interest income			10			9			10			9			8	(20)%	(11)%
Tax credit fund revenues			19			14			16			37			18	(5)%	(51)%
All other			4			3			2			6			3	(25)%	(50)%
Total revenues			261			285			261			310			274	5 %	(12)%
Interest expense			(8)			(8)			(10)			(8)			(6)	(25)%	(25)%
Net revenues			253			277			251			302			268	6 %	(11)%
Non-interest expenses:
Compensation, commissions and benefits			158			168			160			179			166	5 %	(7)%
Non-compensation expenses (1) (2) (3)			83			68			67			90			73	(12)%	(19)%
Total non-interest expenses			241			236			227			269			239	(1)%	(11)%
Pre-tax income	$	12	$	41	$	24	$	33	$	29	142 %	(12)%
Pre-tax margin
		4.7%			14.8%			9.6%			10.9%			10.8%

Please refer to the footnotes at the end of this supplement for additional information.

6

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Asset Management (Unaudited)

							Three months ended						% change from
$ in millions		December 31,			March 31,				June 30,		September 30,		December 31,		December 31,		September 30,
		2018			2019				2019			2019			2019	2018	2019
Revenues:
Asset management and related administrative fees
Managed programs	$	117	$	109	$	120	$	121	$	125	7 %	3 %
Administration and other			44			40				45			49			51	16 %	4 %
Total asset management and related administrative fees			161			149				165			170			176	9 %	4 %
Account and service fees			9			10				8			4			5	(44)%	25 %
All other			4			3				4			4			3	(25)%	(25)%
Net revenues			174			162				177			178			184	6 %	3 %
Non-interest expenses:
Compensation, commissions and benefits			43			45				47			44			45	5 %	2 %
Non-compensation expenses (2)			67			62				65			65			66	(1)%	2 %
Total non-interest expenses			110			107				112			109			111	1 %	2 %
Pre-tax income	$	64	$	55	$	65	$	69	$	73	14 %	6 %
Pre-tax margin
		36.8%			34.0%			36.7%			38.8%			39.7%

Please refer to the footnotes at the end of this supplement for additional information.

7

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Raymond James Bank (Unaudited)

						Three months ended						% change from
$ in millions		December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
		2018			2019			2019			2019			2019	2018	2019
Revenues:
Interest income	$	239	$	247	$	246	$	243	$	231	(3)%	(5)%
Interest expense			(42)			(42)			(38)			(33)			(21)	(50)%	(36)%
Net interest income			197			205			208			210			210	7 %		-
All other			6			7			7			6			6		-		-
Net revenues			203			212			215			216			216	6 %		-
Non-interest expenses:
Compensation and benefits			11			12			13			13			12	9 %	(8)%
Non-compensation expenses:
Loan loss provision/(benefit)			16			5			(5)			6			(2)		NM		NM
RJBDP fees to Private Client Group (11)			41			42			44			46			47	15 %	2 %
All other			25			17			25			20			24	(4)%	20 %
Total non-compensation expenses			82			64			64			72			69	(16)%	(4)%
Total non-interest expenses			93			76			77			85			81	(13)%	(5)%
Pre-tax income	$	110	$	136	$	138	$	131	$	135	23 %	3 %
Pre-tax margin
		54.2%			64.2%			64.2%			60.6%			62.5%

Please refer to the footnotes at the end of this supplement for additional information.

8

RAYMOND JAMES FINANCIAL, INC.

Segment Results - Other (14) (Unaudited)

						Three months ended						% change from
$ in millions		December 31,			March 31,			June 30,		September 30,		December 31,		December 31,		September 30,
		2018			2019			2019			2019			2019	2018	2019
Revenues:
Interest income	$	16	$	14	$	12	$	21	$	12	(25)%	(43)%
Gains/(losses) on private equity investments			4			2			2			6			(2)		NM		NM
All other			1			3			1			(2)			2	100 %		NM
Total revenues			21			19			15			25			12	(43)%	(52)%
Interest expense			(19)			(19)			(19)			(18)			(20)	5 %	11 %
Net revenues			2			-			(4)			7			(8)		NM		NM
Non-interest expenses (2)			20			17			21			29			23	15 %	(21)%
Pre-tax loss	$	(18)	$	(17)	$	(25)	$	(22)	$	(31)	72 %	41 %

Please refer to the footnotes at the end of this supplement for additional information.

9

RAYMOND JAMES FINANCIAL, INC.

Raymond James Bank Selected Key Metrics (Unaudited)

									As of
$ in millions		December 31,		March 31,			June 30,		September 30,		December 31,
		2018			2019			2019			2019			2019
Total assets	$	25,140		$	24,925	$	25,668	$	25,705	$	26,469
Total equity	$	2,072		$	2,136	$	2,198	$	2,248	$	2,300
Bank loans, net	$	19,887		$	20,135	$	20,691	$	20,891	$	21,296
Allowance for loan losses	$	219		$	218	$	215	$	218	$	216
Allowance for loan losses as a % of loans held for investment			1.10%			1.08%			1.03%			1.04%			1.01%
Total nonperforming assets	$	52		$	61	$	56	$	46	$	41
Nonperforming assets as a % of total assets			0.21%			0.25%			0.22%			0.18%			0.16%
Total criticized loans	$	227		$	246	$	197	$	285	$	349
Criticized loans as a % of loans held for investment			1.13%			1.21%			0.95%			1.36%			1.64%
Capital ratios:
Tier 1 capital			12.7%			12.8%			12.8%			13.2%			13.3%
Total capital			13.9%			14.1%			14.1%			14.5%			14.5%
Tier 1 leverage			8.5%			8.6%			8.8%			8.8%			8.8%
						Three months ended
$ in millions		December 31,		March 31,			June 30,		September 30,		December 31,
		2018			2019			2019			2019			2019
Bank loan loss provision/(benefit)	$	16		$	5	$	(5)	$	6	$	(2)
Net charge-offs/(recoveries)	$	(1)		$	6	$	(1)	$	2	$	-
Net interest margin (net yield on interest-earning banking assets)			3.25%			3.35%			3.37%			3.30%			3.23%

% change from

December 31,		September 30,
2018		2019
5 %	3 %
11 %	2 %
7 %	2 %
(1)%	(1)%
(21)%	(11)%
54 %	22 %

(7)

(7)

(7)

% change from

December 31,		September 30,
2018	2019
NM		NM
100 %	(100)%

Please refer to the footnotes at the end of this supplement for additional information.

10

RAYMOND JAMES FINANCIAL, INC.

Reconciliation of GAAP measures to non-GAAP financial measures (Unaudited)

We utilize certain non-GAAP financial measures as additional measures to aid in, and enhance, the understanding of our financial results and related measures. These non-GAAP financial measures have been separately identified in this document. We believe certain of these non-GAAP financial measures provides useful information to management and investors by excluding certain material items that may not be indicative of our core operating results. We utilize these non-GAAP financial measures in assessing the financial performance of the business, as they facilitate a more meaningful comparison of current- and prior-period results. We believe that return on tangible common equity and tangible book value per share are meaningful to investors as they facilitate comparisons of our results to the results of other companies. In the following table, the tax effect of non-GAAP adjustments reflects the statutory rate associated with each non-GAAP item. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other companies. The following table provides a reconciliation of GAAP measures to non-GAAP financial measures for those periods which include non-GAAP adjustments.

			Three months ended
$ in millions, except per share amounts	December 31, 2018		September 30, 2019
Net income	$	249	$	265
Non-GAAPadjustments:
Acquisition and disposition-related expenses (1)		15			-
Goodwill impairment (3)		-			19
Pre-tax impact of non-GAAP adjustments		15			19
Tax effect of non-GAAP adjustments		-			-
Total non-GAAP adjustments, net of tax
	15			19
Adjusted net income	$	264		$	284
Pre-tax income	$	332	$	354
Pre-tax impact of non-GAAP adjustments (as detailed above)		15			19
Adjusted pre-tax income
$	347	$	373
Pre-tax margin (9)
	17.2%			17.5%
Adjusted pre-tax margin (9)		18.0%			18.4%
Earnings per common share (4)
Basic	$	1.73		$	1.90
Adjusted basic
$	1.83		$	2.04
Diluted
$	1.69		$	1.86
Adjusted diluted
$	1.79		$	2.00

Please refer to the footnotes at the end of this supplement for additional information.

11

RAYMOND JAMES FINANCIAL, INC.

Book value per share									As of
$ in millions, except per share amounts		December 31, 2018			March 31, 2019			June 30, 2019		September 30, 2019		December 31, 2019
Total equity attributable to Raymond James Financial, Inc.	$	6,143	$	6,366	$	6,502		$	6,581	$	6,842
Less non-GAAPadjustments:
Goodwill and identifiable intangible assets, net			633			630			635			611			609
Deferred tax liabilities, net			(34)			(35)			(26)			(28)			(31)
Tangible common equity attributable to Raymond James Financial, Inc.	$	5,544	$	5,771	$	5,893		$	5,998	$	6,264
Common shares outstanding			140.6			140.4			139.7			137.8			138.9
Book value per share (5)	$	43.69	$	45.34	$	46.54		$	47.76	$	49.26
Tangible book value per share (5)
	$	39.43		$	41.10		$	42.18		$	43.53		$	45.10
Return on equity							Three months ended
$ in millions		December 31, 2018			March 31, 2019			June 30, 2019		September 30, 2019		December 31, 2019
Average equity (15)	$	6,256	$	6,255	$	6,434		$	6,542	$	6,712
Impact on average equity of non-GAAPadjustments:
Acquisition and disposition-related expenses (1)			7			NA			NA		-			NA
Goodwill impairment (3)			-			NA			NA			9			NA
Adjusted average equity (15)	$	6,263			NA			NA	$	6,551			NA
Average equity (15)	$	6,256	$	6,255	$	6,434		$	6,542	$	6,712
Less:
Average goodwill and identifiable intangible assets, net			636			632			633			623			610
Average deferred tax liabilities, net			(33)			(35)			(31)			(27)			(30)
Average tangible common equity (15)	$	5,653	$	5,658	$	5,832		$	5,946	$	6,132
Impact on average equity of non-GAAPadjustments:
Acquisition and disposition-related expenses (1)			7			NA			NA		-			NA
Goodwill impairment (3)			-			NA			NA			9			NA
Adjusted average tangible common equity (15)	$	5,660			NA			NA	$	5,955			NA
Return on equity (8)			15.9%			16.7%			16.1%			16.2%			16.0%
Adjusted return on equity (8)			16.9%			NA			NA		17.3%			NA
Return on tangible common equity (8)			17.6%			18.5%			17.8%			17.8%			17.5%
Adjusted return on tangible common equity (8)			18.7%			NA			NA		19.1%			NA

Please refer to the footnotes at the end of this supplement for additional information.

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RAYMOND JAMES FINANCIAL, INC.

Footnotes

1. The three months ended December 31, 2018 included a loss in our Capital Markets segment on the sale of our operations related to research, sales and trading of European equities.
2. The offset for the net gain/(loss) attributable to noncontrolling interests is in Other expenses. Prior period results have been conformed to the current presentation.
3. The three months ended September 30, 2019 included a $19 million goodwill impairment charge associated with our Canadian Capital Markets business.
4. Computed by dividing net income (less allocation of earnings and dividends to participating securities) by weighted-average common shares outstanding (basic or diluted as applicable) for each respective period or, in the case of adjusted earnings per share, computed by dividing adjusted net income (less allocation of earnings and dividends to participating securities) by weighted- average common shares outstanding (basic or diluted as applicable) for each respective period.
5. Computed by dividing total equity attributable to Raymond James Financial, Inc. by the number of common shares outstanding at the end of each respective period or, in the case of tangible book value per share, computed by dividing tangible common equity by the number of common shares outstanding at the end of each respective period. Tangible common equity is defined as total equity attributable to Raymond James Financial, Inc. less goodwill and intangible assets, net of related deferred taxes.
6. These are non-GAAP measures. See the schedules on the previous pages of this document for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures and for more information on these measures. There were no non-GAAP adjustments to earnings for the three months ended December 31, 2019; therefore, percent changes for earnings-related measures are calculated based on GAAP results for the three months ended December 31, 2019 as compared to non-GAAP results for the three months ended September 30, 2019 and December 31, 2018.
7. Estimated.
8. Computed by dividing annualized net income by average equity for each respective period or, in the case of return on tangible common equity, computed by dividing annualized net income by average tangible common equity for each respective period. Adjusted return on equity is computed by dividing annualized adjusted net income by adjusted average equity for each respective period, or in the case of adjusted return on tangible common equity, computed by dividing annualized adjusted net income by adjusted average tangible common equity for each respective period.
9. Computed by dividing pre-tax income by net revenues for each respective period or, in the case of adjusted pre-tax margin, computed by dividing adjusted pre-tax income by net revenues for each respective period.
10. Computed by dividing compensation, commissions and benefits expense by net revenues for each respective period.
11. We earn fees from RJBDP, a multi-bank sweep program in which clients' cash deposits in their brokerage accounts are swept into interest-bearing deposit accounts at Raymond James Bank and various third-party banks. Fees earned by Private Client Group on Raymond James Bank deposits are eliminated in consolidation.
12. Money market funds were discontinued as a sweep option during the third fiscal quarter of 2019. Balances in those funds were converted to RJBDP or reinvested by the client.
13. Computed by dividing RJBDP fees - third-party banks, which are net of the interest expense paid to clients by the third-party banks, by the average daily RJBDP balance at third-party banks.
14. The Other segment includes the results of our private equity investments, interest income on certain corporate cash balances, and certain corporate overhead costs of Raymond James Financial, Inc., including the interest costs on our public debt.
15. Computed by adding the total equity attributable to Raymond James Financial, Inc. as of the date indicated to the prior quarter-end total, and dividing by two, or in the case of average tangible common equity, computed by adding tangible common equity as of the date indicated to the prior quarter-end total, and dividing by two. Adjusted average equity is computed by adjusting for the impact on average equity of the non-GAAP adjustments, as applicable for each respective period. Adjusted average tangible common equity is computed by adjusting for the impact on average tangible common equity of the non-GAAP adjustments, as applicable for each respective period.

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