AVAILABLE-FOR-SALE SECURITIES

9 Months Ended

Jun. 30, 2022

Debt Securities, Available-for-Sale [Abstract]

We own available-for-sale securities at Raymond James Bank and TriState Capital Bank. Refer to Note 2 of our 2021 Form 10-K for a discussion of our accounting policies applicable to 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
June 30, 2022
Agency residential MBS	$	5,903	$	—	$	(390)	$	5,513
Agency commercial MBS	1,428		—		(144)		1,284
Agency CMOs	1,706		1		(161)		1,546
Other agency obligations	578		—		(11)		567
Non-agency residential MBS	496		—		(11)		485
U.S. Treasuries	919		—		(7)		912
Corporate bonds	140		1		(1)		140
Other	19		—		(2)		17
Total available-for-sale securities	$	11,189	$	2	$	(727)	$	10,464

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
U.S. Treasuries	15		—		—		15



Total available-for-sale securities	$	8,322	$	62	$	(69)	$	8,315

The amortized costs and fair values in the preceding table exclude $22 million and $14 million of accrued interest on available-for-sale securities as of June 30, 2022 and September 30, 2021, respectively, which was included in “Other receivables, net” on our Condensed 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 June 30, 2022, the weighted-average life of our available-for-sale securities portfolio was approximately 4.75 years.


	June 30, 2022
$ 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	$	—		$	135		$	2,621		$	3,147		$	5,903
Carrying value	$	—		$	133		$	2,468		$	2,912		$	5,513
Agency commercial MBS
Amortized cost	$	19		$	481		$	853		$	75		$	1,428
Carrying value	$	19		$	452		$	746		$	67		$	1,284
Agency CMOs
Amortized cost	$	—		$	8		$	34		$	1,664		$	1,706
Carrying value	$	—		$	8		$	32		$	1,506		$	1,546
Other agency obligations
Amortized cost	$	—		$	467		$	99		$	12		$	578
Carrying value	$	—		$	456		$	98		$	13		$	567
Non-agency residential MBS
Amortized cost	$	—		$	—		$	—		$	496		$	496
Carrying value	$	—		$	—		$	—		$	485		$	485
U.S. Treasuries
Amortized cost	$	—		$	915		$	4		$	—		$	919
Carrying value	$	—		$	909		$	3		$	—		$	912
Corporate bonds
Amortized cost	$	—		$	78		$	62		$	—		$	140
Carrying value	$	—		$	77		$	63		$	—		$	140
Other
Amortized cost	$	1		$	5		$	—		$	13		$	19
Carrying value	$	1		$	4		$	—		$	12		$	17
Total available-for-sale securities
Amortized cost	$	20		$	2,089		$	3,673		$	5,407		$	11,189
Carrying value	$	20		$	2,039		$	3,410		$	4,995		$	10,464
Weighted-average yield	2.15		%	2.23		%	1.33		%	1.89		%	1.76		%

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, 2022
Agency residential MBS	$	4,288	$	(267)	$	1,149	$	(123)	$	5,437	$	(390)
Agency commercial MBS	607		(44)		649		(100)		1,256		(144)
Agency CMOs	961		(85)		547		(76)		1,508		(161)
Other agency obligations	487		(11)		—		—		487		(11)
Non-agency residential MBS	471		(11)		—		—		471		(11)
U.S. Treasuries	776		(7)		—		—		776		(7)
Corporate bonds	120		(1)		—		—		120		(1)
Other	18		(1)		—		(1)		18		(2)
Total	$	7,728	$	(427)	$	2,345	$	(300)	$	10,073	$	(727)
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)
U.S. Treasuries	3		—		—		—		3		—



Total	$	4,721	$	(50)	$	602	$	(19)	$	5,323	$	(69)

At June 30, 2022, of the 992 available-for-sale securities in an unrealized loss position, 842 were in a continuous unrealized loss position for less than 12 months and 150 securities were in a continuous unrealized loss position for greater than 12 months. The contractual cash flows for certain securities within our available-for-sale portfolio are guaranteed by the U.S. government or its agencies. For those securities, we do not consider any associated unrealized losses 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 June 30, 2022, based on our assessment of those securities not guaranteed by the U.S. government or its agencies, we recognized an insignificant allowance for credit losses.

At June 30, 2022, 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 $5.60 billion and $3.23 billion, respectively, and fair values of $5.18 billion and $2.97 billion, respectively.

During the three and nine months ended June 30, 2022, sales of available-for-sale securities were insignificant. During the three and nine months ended June 30, 2021, we received proceeds of $450 million and $969 million, respectively, from the sales of agency MBS and agency CMO available-for-sale securities, resulting in insignificant gains.