Bank client receivables are comprised of loans originated or purchased by Raymond James Bank and include commercial and industrial (“C&I”) loans, real estate investment trust (“REIT”) loans, tax-exempt loans, commercial and residential real estate loans, and securities-based loans (“SBL”) and other loans. These receivables are collateralized by first and, to a lesser extent, second mortgages on residential or other real property, other assets of the borrower, a pledge of revenue, securities or are unsecured. We segregate our loan portfolio into six loan portfolio segments: C&I, commercial real estate (“CRE”), REIT, tax-exempt, residential mortgage, and SBL and other. See Note 2 of our 2021 Form 10-K for a discussion of our October 1, 2020 adoption of new accounting guidance related to the measurement of credit losses on financial instruments and our accounting policies related to bank loans and the allowance for credit losses.

Loan balances in the following tables are presented at amortized cost (outstanding principal balance net of unearned income and deferred expenses, which include purchase premiums, purchase discounts and net deferred origination fees and costs), except for certain held for sale loans recorded at fair value. Bank loans are presented on our Condensed Consolidated Statements of Financial Condition at amortized cost (or fair value where applicable) less the allowance for credit losses.


	December 31, 2021				September 30, 2021
$ in millions	Balance		%		Balance		%
C&I loans	$	8,608	33	%	$	8,440	33	%
CRE loans	2,992		11	%	2,872		11	%
REIT loans	1,189		4	%	1,112		5	%
Tax-exempt loans	1,290		5	%	1,321		5	%
Residential mortgage loans	5,568		21	%	5,318		21	%
SBL and other	6,563		25	%	6,106		24	%
Total loans held for investment	26,210		99	%	25,169		99	%
Held for sale loans	230		1	%	145		1	%
Total loans held for sale and investment	26,440		100	%	25,314		100	%
Allowance for credit losses	(308)				(320)
Bank loans, net	$	26,132			$	24,994
Accrued interest receivable on bank loans	$	51			$	48

The allowance for credit losses was 1.18% and 1.27% of the held for investment loan portfolio as of December 31, 2021 and September 30, 2021, respectively. Accrued interest receivables presented in the preceding table are reported in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition.

At December 31, 2021, the FHLB had a blanket lien on Raymond James Bank’s residential mortgage loan portfolio as security for the repayment of certain borrowings. See Note 16 of our 2021 Form 10-K for more information regarding borrowings from the FHLB.

Raymond James Bank originated or purchased $968 million and $582 million of loans held for sale during the three months ended December 31, 2021 and 2020, respectively. The majority of these loans were purchases of the guaranteed portions of Small Business Administration (“SBA”) loans intended for resale in the secondary market as individual SBA loans or as securitized pools of SBA loans. Proceeds from the sales of these held for sale loans amounted to $338 million and $188 million during the three months ended December 31, 2021 and 2020, respectively. Net gains resulting from such sales were insignificant for each of the three months ended December 31, 2021 and 2020.

Sales in the preceding table represent the recorded investment (i.e., net of charge-offs and discounts or premiums) of loans held for investment that were transferred to loans held for sale and subsequently sold to a third party during the respective period. As more fully described in Note 2 of our 2021 Form 10-K, corporate loan sales generally occur as part of our credit management activities.


$ in millions	30-89 days and accruing		90 days or more and accruing		Total past due and accruing		Nonaccrual with allowance		Nonaccrual with no allowance		Current and accruing		Total loans held for investment
December 31, 2021
C&I loans	$	—	$	—	$	—	$	38	$	—	$	8,570	$	8,608
CRE loans	—		—		—		—		20		2,972		2,992
REIT loans	—		—		—		—		—		1,189		1,189
Tax-exempt loans	—		—		—		—		—		1,290		1,290
Residential mortgage loans	1		—		1		1		14		5,552		5,568
SBL and other	—		—		—		—		—		6,563		6,563
Total loans held for investment	$	1	$	—	$	1	$	39	$	34	$	26,136	$	26,210

September 30, 2021
C&I loans	$	—	$	—	$	—	$	39	$	—	$	8,401	$	8,440
CRE loans	—		—		—		—		20		2,852		2,872
REIT loans	—		—		—		—		—		1,112		1,112
Tax-exempt loans	—		—		—		—		—		1,321		1,321
Residential mortgage loans	2		—		2		2		13		5,301		5,318
SBL and other	—		—		—		—		—		6,106		6,106
Total loans held for investment	$	2	$	—	$	2	$	41	$	33	$	25,093	$	25,169

The preceding table includes $59 million and $61 million at December 31, 2021 and September 30, 2021, respectively, of nonaccrual loans which were current pursuant to their contractual terms. The table also includes troubled debt restructurings (“TDRs”) of $12 million for CRE loans and $13 million for residential first mortgage loans at both December 31, 2021 and September 30, 2021.

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral. We had $20 million of collateral-dependent CRE loans at both December 31, 2021 and September 30, 2021, which were fully collateralized by retail and industrial real estate. We had $7 million and $5 million of collateral-dependent residential loans at December 31, 2021 and September 30, 2021, respectively, which were fully collateralized by single family homes. Collateral-dependent loans do not include loans to borrowers who have been granted forbearance as result of the COVID-19 pandemic or loans for which the borrower had requested a loan modification, where the request had been initiated but had not been approved or completed as of December 31, 2021. Such loans may be considered collateral-dependent after the forbearance period expires. The recorded investment in mortgage loans secured by one-to-four family residential properties for which formal foreclosure proceedings were in process was $4 million at both December 31, 2021 and September 30, 2021.

The credit quality of our bank loan portfolio is summarized monthly by management using internal risk ratings, which align with the standard asset classification system utilized by bank regulators. These classifications are divided into three groups: Not Classified (Pass), Special Mention, and Classified or Adverse Rating (Substandard, Doubtful and Loss). These terms are defined as follows:

Substandard – Loans which are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently-known facts, conditions and values.

Loss – Loans which are considered by management to be uncollectible and of such little value that their continuance on our books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. We do not have any loan balances within this classification because, in accordance with our accounting policy, loans, or a portion thereof considered to be uncollectible are charged-off prior to the assignment of this classification.


	December 31, 2021
	Loans by origination fiscal year
$ in millions	2022		2021		2020		2019		2018		Prior		Revolving loans		Total
C&I loans
Risk rating:
Pass	$	293	$	1,042	$	1,316	$	1,108	$	1,382	$	2,260	$	993	$	8,394
Special mention	—		—		—		40		—		76		4		120
Substandard	—		—		—		24		39		17		—		80
Doubtful	—		—		—		14		—		—		—		14
Total C&I loans	$	293	$	1,042	$	1,316	$	1,186	$	1,421	$	2,353	$	997	$	8,608



CRE loans
Risk rating:
Pass	$	154	$	615	$	397	$	431	$	642	$	380	$	76	$	2,695
Special mention	—		—		45		43		36		—		—		124
Substandard	—		—		—		48		80		45		—		173
Doubtful	—		—		—		—		—		—		—		—
Total CRE loans	$	154	$	615	$	442	$	522	$	758	$	425	$	76	$	2,992



REIT loans
Risk rating:
Pass	$	—	$	239	$	96	$	65	$	25	$	140	$	429	$	994
Special mention	—		—		—		13		11		138		6		168
Substandard	—		—		—		21		—		4		2		27
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	—	$	239	$	96	$	99	$	36	$	282	$	437	$	1,189



Tax-exempt loans
Risk rating:
Pass	$	—	$	158	$	57	$	118	$	200	$	757	$	—	$	1,290
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	—	$	158	$	57	$	118	$	200	$	757	$	—	$	1,290



Residential mortgage loans
Risk rating:
Pass	$	562	$	1,822	$	1,182	$	581	$	349	$	1,023	$	20	$	5,539
Special mention	—		—		—		2		—		5		—		7
Substandard	—		—		—		—		—		22		—		22
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	562	$	1,822	$	1,182	$	583	$	349	$	1,050	$	20	$	5,568



SBL and other
Risk rating:
Pass	$	—	$	6	$	45	$	12	$	—	$	—	$	6,500	$	6,563
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL and other	$	—	$	6	$	45	$	12	$	—	$	—	$	6,500	$	6,563


	September 30, 2021
	Loans by origination fiscal year
$ in millions	2021		2020		2019		2018		2017		Prior		Revolving loans		Total
C&I loans
Risk rating:
Pass	$	999	$	1,273	$	1,180	$	1,408	$	935	$	1,633	$	739	$	8,167
Special mention	—		—		41		—		26		54		1		122
Substandard	—		—		24		84		—		28		—		136
Doubtful	—		—		15		—		—		—		—		15
Total C&I loans	$	999	$	1,273	$	1,260	$	1,492	$	961	$	1,715	$	740	$	8,440



CRE loans
Risk rating:
Pass	$	533	$	459	$	442	$	652	$	223	$	174	$	62	$	2,545
Special mention	—		45		58		36		—		—		—		139
Substandard	—		—		32		98		8		50		—		188
Doubtful	—		—		—		—		—		—		—		—
Total CRE loans	$	533	$	504	$	532	$	786	$	231	$	224	$	62	$	2,872



REIT loans
Risk rating:
Pass	$	235	$	95	$	75	$	60	$	46	$	167	$	237	$	915
Special mention	—		—		13		11		33		106		6		169
Substandard	—		—		21		—		4		—		3		28
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	235	$	95	$	109	$	71	$	83	$	273	$	246	$	1,112



Tax-exempt loans
Risk rating:
Pass	$	158	$	57	$	124	$	204	$	272	$	506	$	—	$	1,321
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	158	$	57	$	124	$	204	$	272	$	506	$	—	$	1,321



Residential mortgage loans
Risk rating:
Pass	$	1,861	$	1,266	$	640	$	386	$	451	$	666	$	20	$	5,290
Special mention	—		—		—		—		—		5		—		5
Substandard	—		—		—		1		2		20		—		23
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	1,861	$	1,266	$	640	$	387	$	453	$	691	$	20	$	5,318



SBL and other
Risk rating:
Pass	$	3	$	45	$	12	$	—	$	—	$	—	$	6,046	$	6,106
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL and other	$	3	$	45	$	12	$	—	$	—	$	—	$	6,046	$	6,106

We also monitor the credit quality of the residential mortgage loan portfolio utilizing Fair Isaac Corporation (“FICO”) scores and loan-to-value (“LTV”) ratios. A FICO score measures a borrower’s creditworthiness by considering factors such as payment and credit history. LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan.


$ in millions	December 31, 2021		September 30, 2021
FICO score:
Below 600	$	67	$	67
600 - 699	431		416
700 - 799	3,982		3,772
800 +	1,082		1,058
FICO score not available	6		5
Total	$	5,568	$	5,318

LTV ratio:
Below 80%	$	4,348	$	4,123
80%+	1,220		1,195
Total	$	5,568	$	5,318


$ in millions	C&I loans		CRE loans		REIT loans		Tax-exempt loans		Residential mortgage loans		SBL and other		Total
Three months ended December 31, 2021
Balance at beginning of period	$	191	$	66	$	22	$	2	$	35	$	4	$	320

Provision/(benefit) for credit losses	(10)		6		—		—		(6)		(1)		(11)
Net (charge-offs)/recoveries:
Charge-offs	(2)		—		—		—		—		—		(2)
Recoveries	—		—		—		—		1		—		1
Net (charge-offs)/recoveries	(2)		—		—		—		1		—		(1)
Foreign exchange translation adjustment	—		—		—		—		—		—		—
Balance at end of period	$	179	$	72	$	22	$	2	$	30	$	3	$	308












Three months ended December 31, 2020
Balance at beginning of period	$	200	$	81	$	36	$	14	$	18	$	5	$	354
Impact of current expected credit loss (“CECL”) adoption	19		(11)		(9)		(12)		24		(2)		9
Provision/(benefit) for credit losses	(22)		42		3		—		(9)		—		14
Net (charge-offs)/recoveries:
Charge-offs	—		—		—		—		—		—		—
Recoveries	—		—		—		—		—		—		—
Net (charge-offs)/recoveries	—		—		—		—		—		—		—
Foreign exchange translation adjustment	1		—		—		—		—		—		1
Balance at end of period	$	198	$	112	$	30	$	2	$	33	$	3	$	378

The allowance for credit losses on held for investment bank loans decreased $12 million to $308 million during three months ended December 31, 2021, largely attributable to improvement in credit quality in the C&I bank loan portfolio and continued improvement in macroeconomic inputs to our CECL model, which positively impacted most loan portfolios, partially offset by provisions for credit losses related to loan growth.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $12 million and $13 million at December 31, 2021 and September 30, 2021, respectively.

Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 of our 2021 Form 10-K for a discussion of our accounting policies related to loans to financial advisors and the related allowance for credit losses. The following table presents the balances for our loans to financial advisors and the related accrued interest receivable.


$ in millions	December 31, 2021			September 30, 2021
Currently affiliated with the firm (1)	$	1,128		$	1,074
No longer affiliated with the firm (2)	9			10
Total loans to financial advisors	1,137			1,084
Allowance for credit losses	(29)			(27)
Loans to financial advisors, net	$	1,108		$	1,057
Accrued interest receivable on loans to financial advisors	$	4		$	4
Allowance for credit losses as a percent of the loan portfolio	2.55		%	2.49		%