INTEREST INCOME AND INTEREST EXPENSE

6 Months Ended

Mar. 31, 2016

Interest Income (Expense), Net [Abstract]

INTEREST INCOME AND INTEREST EXPENSE

INTEREST INCOME AND INTEREST EXPENSE

The components of interest income and interest expense are as follows:

	Three months ended March 31,						Six months ended March 31,
	2016			2015			2016			2015
	(in thousands)
Interest income:
Margin balances	$	17,068		$	16,237		$	34,502		$	33,513
Assets segregated pursuant to regulations and other segregated assets	6,686			3,179			10,658			6,789
Bank loans, net of unearned income	123,370			100,054			230,971			196,812
Available for sale securities	1,921			1,284			3,572			2,596
Trading instruments	5,145			4,925			9,426			9,425
Stock loan	2,212			3,699			4,127			7,210
Loans to financial advisors	2,011			1,687			3,910			3,437
Corporate cash and all other	3,154			3,348			6,872			6,740
Total interest income	$	161,567		$	134,413		$	304,038		$	266,522
Interest expense:
Brokerage client liabilities	$	635		$	241		$	862		$	524
Retail bank deposits (1)	2,752			2,090			4,771			4,227
Trading instruments sold but not yet purchased	1,371			1,133			2,562			2,218
Stock borrow	773			1,795			1,396			3,413
Borrowed funds	3,328			1,129			6,093			2,188
Senior notes	19,091			19,009			38,182			38,019
Interest expense of consolidated VIEs	315			537			625			1,066
Other	1,159			912			1,942			2,575
Total interest expense	29,424			26,846			56,433			54,230
Net interest income	132,143			107,567			247,605			212,292
Subtract: provision for loan losses	(9,629		)	(3,937		)	(23,539		)	(13,302		)
Net interest income after provision for loan losses	$	122,514		$	103,630		$	224,066		$	198,990

(1) The balances for the three and six months ended March 31, 2016, respectively, are presented net of interest expense associated with affiliate deposits.