AVAILABLE-FOR-SALE SECURITIES

9 Months Ended

Jun. 30, 2020

Debt Securities, Available-for-sale [Abstract]

Available-for-sale securities are primarily comprised of agency MBS and CMOs owned by Raymond James Bank (“RJ Bank”). Refer to the discussion of our available-for-sale securities accounting policies, including the fair value determination process, in Note 2 of our 2019 Form 10-K.

The following table details the amortized cost and fair values of our available-for-sale securities.


$ in millions	Cost basis		Gross unrealized gains		Gross unrealized losses		Fair value
June 30, 2020
Agency residential MBS	$	2,895	$	69	$	(1)	$	2,963
Agency commercial MBS	570		20		—		590
Agency CMOs	2,032		29		—		2,061
Other securities	15		1		—		16
Total available-for-sale securities	$	5,512	$	119	$	(1)	$	5,630

September 30, 2019
Agency residential MBS	$	1,555	$	20	$	(1)	$	1,574
Agency commercial MBS	305		5		—		310
Agency CMOs	1,195		7		(3)		1,199
Other securities	10		—		—		10
Total available-for-sale securities	$	3,065	$	32	$	(4)	$	3,093

See Note 3 for additional information regarding the fair value of available-for-sale securities.

The following table details the contractual maturities, amortized costs, carrying values and current yields for our available-for-sale securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. As of June 30, 2020, the duration of our available-for-sale securities portfolio was approximately three years.


	June 30, 2020
$ in millions	Within one year			After one but within five years			After five but within ten years			After ten years			Total
Agency residential MBS
Amortized cost	$	—		$	27		$	1,130		$	1,738		$	2,895
Carrying value	$	—		$	28		$	1,160		$	1,775		$	2,963
Agency commercial MBS
Amortized cost	$	12		$	170		$	285		$	103		$	570
Carrying value	$	12		$	175		$	298		$	105		$	590
Agency CMOs
Amortized cost	$	—		$	11		$	81		$	1,940		$	2,032
Carrying value	$	—		$	11		$	82		$	1,968		$	2,061
Other securities
Amortized cost	$	—		$	3		$	12		$	—		$	15
Carrying value	$	—		$	4		$	12		$	—		$	16
Total available-for-sale securities
Amortized cost	$	12		$	211		$	1,508		$	3,781		$	5,512
Carrying value	$	12		$	218		$	1,552		$	3,848		$	5,630
Weighted-average yield	1.99		%	2.29		%	2.05		%	1.82		%	1.90		%

The following table details the gross unrealized losses and fair values of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position.


	Less than 12 months						12 months or more						Total
$ in millions	Estimated fair value		Unrealized losses		Estimated fair value		Unrealized losses		Estimated fair value		Unrealized losses
June 30, 2020
Agency residential MBS	$	284	$	(1)	$	—	$	—	$	284	$	(1)

Agency CMOs	149		—		—		—		149		—

Total	$	433	$	(1)	$	—	$	—	$	433	$	(1)

September 30, 2019
Agency residential MBS	$	166	$	—	$	114	$	(1)	$	280	$	(1)
Agency commercial MBS	—		—		44		—		44		—
Agency CMOs	145		(1)		351		(2)		496		(3)
Other securities	2		—		—		—		2		—
Total	$	313	$	(1)	$	509	$	(3)	$	822	$	(4)

The contractual cash flows of our available-for-sale securities are guaranteed by the U.S. government or its agencies. At June 30, 2020, of the 26 available-for-sale securities in an unrealized loss position, all were in a continuous unrealized loss position for less than 12 months. At June 30, 2020, debt securities we held in excess of ten percent of our equity included Federal National Home Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) which had an amortized cost of $3.78 billion and $1.44 billion, respectively, and a fair value of $3.86 billion and $1.47 billion, respectively.

During the three and nine months ended June 30, 2020, we received proceeds of $222 million, resulting in an insignificant gain, from sales of available-for-sale securities. The gain from the sales was included in “Other” revenues on our Condensed Consolidated Statements of Income and Comprehensive Income. During the three and nine months ended June 30, 2019, there were no sales of available-for-sale securities.