AVAILABLE-FOR-SALE SECURITIES

12 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Available-for-sale securities are primarily comprised of agency MBS and agency CMOs owned by Raymond James Bank. As of October 1, 2020, we adopted new accounting guidance related to the measurement of credit losses on financial instruments, including available-for-sale securities. Refer to Note 2 for further information about this guidance and a discussion of our available-for-sale securities.

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


$ in millions	Cost basis		Gross unrealized gains		Gross unrealized losses		Fair value
September 30, 2021
Agency residential MBS	$	5,168	$	46	$	(25)	$	5,189
Agency commercial MBS	1,285		7		(28)		1,264
Agency CMOs	1,854		9		(16)		1,847
Other securities	15		—		—		15
Total available-for-sale securities	$	8,322	$	62	$	(69)	$	8,315

September 30, 2020
Agency residential MBS	$	4,064	$	74	$	(3)	$	4,135
Agency commercial MBS	948		22		(1)		969
Agency CMOs	2,504		27		(1)		2,530
Other securities	15		1		—		16
Total available-for-sale securities	$	7,531	$	124	$	(5)	$	7,650

The amortized costs and fair values in the preceding table exclude $14 million and $15 million of accrued interest on available-for-sale securities as of September 30, 2021 and September 30, 2020, respectively, which was included in “Other receivables, net” on our Consolidated Statements of Financial Condition.

See Note 4 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 a result, as of September 30, 2021, the weighted-average life of our available-for-sale securities portfolio was approximately four years.


	September 30, 2021
$ 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	$	—		$	80		$	2,554		$	2,534		$	5,168
Carrying value	$	—		$	84		$	2,570		$	2,535		$	5,189
Agency commercial MBS
Amortized cost	$	21		$	298		$	878		$	88		$	1,285
Carrying value	$	21		$	299		$	856		$	88		$	1,264
Agency CMOs
Amortized cost	$	—		$	1		$	32		$	1,821		$	1,854
Carrying value	$	—		$	1		$	33		$	1,813		$	1,847
Other securities
Amortized cost	$	—		$	8		$	7		$	—		$	15
Carrying value	$	—		$	8		$	7		$	—		$	15
Total available-for-sale securities
Amortized cost	$	21		$	387		$	3,471		$	4,443		$	8,322
Carrying value	$	21		$	392		$	3,466		$	4,436		$	8,315
Weighted-average yield	2.24		%	1.61		%	1.15		%	1.08		%	1.14		%

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
September 30, 2021
Agency residential MBS	$	3,155	$	(25)	$	18	$	—	$	3,173	$	(25)
Agency commercial MBS	645		(13)		353		(15)		998		(28)
Agency CMOs	918		(12)		231		(4)		1,149		(16)
Other securities	3		—		—		—		3		—
Total	$	4,721	$	(50)	$	602	$	(19)	$	5,323	$	(69)
September 30, 2020
Agency residential MBS	$	966	$	(3)	$	—	$	—	$	966	$	(3)
Agency commercial MBS	177		(1)		—		—		177		(1)
Agency CMOs	410		(1)		—		—		410		(1)

Total	$	1,553	$	(5)	$	—	$	—	$	1,553	$	(5)

The contractual cash flows of our available-for-sale securities are guaranteed by the U.S. government or its agencies. At September 30, 2021, of the 276 available-for-sale securities in an unrealized loss position, 239 were in a continuous unrealized loss position for less than 12 months and 37 securities were in a continuous unrealized loss position for greater than 12 months. We do not consider unrealized losses associated with these securities to be credit losses due to the guarantee of the full payment of principal and interest, and the fact that we have the ability and intent to hold these securities. In addition, unrealized losses related to these available-for-sale securities are generally due to changes in market interest rates. At September 30, 2021, based on our assessment of this portfolio, we did not recognize an allowance for credit losses on our available-for-sale securities. At September 30, 2021, debt securities we held in excess of ten percent of our equity included those issued by the Federal National Home Mortgage Association and Federal Home Loan Mortgage Corporation with amortized costs of $5.17 billion and $2.90 billion, respectively, which also approximated the fair values of the securities.

We received proceeds of $969 million and $222 million, respectively, from the sales of available-for-sale securities for the years ended September 30, 2021 and 2020, respectively. These sales resulted in insignificant gains for both periods, which were included in “Other” revenues on our Consolidated Statements of Income and Comprehensive Income. There were no sales of available-for-sale securities for the year ended September 30, 2019.