Bank client receivables are comprised of loans originated or purchased by our Bank segment and include securities-based loans (“SBL”), corporate loans (commercial and industrial (“C&I”) loans, commercial real estate (“CRE”) loans, and real estate investment trust (“REIT”) loans), residential mortgage loans, and tax-exempt 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: SBL, C&I, CRE, REIT, residential mortgage, and tax-exempt. See Note 2 of our 2022 Form 10-K for a discussion of 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 unamortized purchase discounts or premiums, unearned income, and 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 (“ACL”). As it pertains to TriState Capital Bank’s loans acquired as of June 1, 2022, the amortized cost of such purchased loans reflects the fair value of the loans on the acquisition date, and as described further in Note 3 of our 2022 Form 10-K, the purchase discount on such loans is accreted to interest income over the weighted-average life of the underlying loans, which may vary based on prepayments.


$ in millions	December 31, 2022			September 30, 2022
SBL	$	14,885		$	15,297
C&I loans	11,405			11,173
CRE loans	6,929			6,549
REIT loans	1,680			1,592
Residential mortgage loans	7,818			7,386
Tax-exempt loans	1,667			1,501
Total loans held for investment	44,384			43,498
Held for sale loans	90			137
Total loans held for sale and investment	44,474			43,635
Allowance for credit losses	(408)			(396)
Bank loans, net (1)	$	44,066		$	43,239

ACL as a % of total loans held for investment	0.92		%	0.91		%
Accrued interest receivable on bank loans (included in “Other receivables, net”)	$	182		$	137

(1) Bank loans, net as of December 31, 2022 and September 30, 2022 are presented net of $108 million and $112 million, respectively, of net unamortized discount, unearned income, and deferred loan fees and costs. The net unamortized discount primarily arose from the acquisition date fair value purchased discount on bank loans acquired in the TriState Capital acquisition. See Note 3 of our 2022 Form 10-K for further information.

We originated or purchased $802 million and $968 million of loans held for sale during the three months ended December 31, 2022 and 2021, respectively. The majority of these loans were purchases of the guaranteed portions of Small Business Administration (“SBA”) loans that were initially classified as loans held for sale upon purchase and subsequently transferred to trading instruments once they had been securitized into pools. Proceeds from the sales of all loans held for sale and not securitized amounted to $198 million and $338 million during the three months ended December 31, 2022 and 2021, respectively. Net gains resulting from such sales were insignificant for each of the three months ended December 31, 2022 and 2021.


$ in millions	C&I loans		CRE loans		REIT loans		Residential mortgage loans		Total
Three months ended December 31, 2022
Purchases	$	163	$	39	$	24	$	190	$	416
Sales	$	—	$	—	$	—	$	—	$	—



Three months ended December 31, 2021
Purchases	$	339	$	—	$	—	$	184	$	523
Sales	$	51	$	—	$	—	$	—	$	51

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 2022 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, 2022
SBL	$	—	$	—	$	—	$	—	$	—	$	14,885	$	14,885
C&I loans	10		—		10		27		—		11,368		11,405
CRE loans	9		—		9		—		19		6,901		6,929
REIT loans	—		—		—		—		—		1,680		1,680
Residential mortgage loans	4		—		4		—		15		7,799		7,818
Tax-exempt loans	—		—		—		—		—		1,667		1,667
Total loans held for investment	$	23	$	—	$	23	$	27	$	34	$	44,300	$	44,384

September 30, 2022
SBL	$	—	$	—	$	—	$	—	$	—	$	15,297	$	15,297
C&I loans	—		—		—		32		—		11,141		11,173
CRE loans	—		—		—		12		16		6,521		6,549
REIT loans	—		—		—		—		—		1,592		1,592
Residential mortgage loans	4		—		4		—		14		7,368		7,386
Tax-exempt loans	—		—		—		—		—		1,501		1,501
Total loans held for investment	$	4	$	—	$	4	$	44	$	30	$	43,420	$	43,498

The preceding table includes $39 million and $63 million at December 31, 2022 and September 30, 2022, respectively, of nonaccrual loans which were current pursuant to their contractual terms. The table also includes troubled debt restructurings of $11 million, $8 million, and $10 million for C&I loans, CRE loans, and residential first mortgage loans, respectively, at

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. Collateral-dependent loans are recorded based upon the fair value of the collateral less the estimated selling costs.


Loan type ($ in millions)	Nature of collateral	December 31, 2022		September 30, 2022

C&I loans	Commercial real estate and other business assets	$	11	$	11
CRE loans	Retail, industrial, and health care real estate	$	19	$	21

Residential mortgage loans	Single family homes	$	8	$	6

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:

Pass – Loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell, of any underlying collateral and generally are performing in accordance with the contractual terms.

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, 2022
	Loans by origination fiscal year
$ in millions	2023		2022		2021		2020		2019		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	5	$	14	$	79	$	54	$	27	$	93	$	14,613	$	14,885
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	5	$	14	$	79	$	54	$	27	$	93	$	14,613	$	14,885



C&I loans
Risk rating:
Pass	$	187	$	1,129	$	1,418	$	1,295	$	1,074	$	3,372	$	2,620	$	11,095
Special mention	—		10		29		38		9		75		5		166
Substandard	—		—		—		59		23		45		13		140
Doubtful	—		—		—		—		—		4		—		4
Total C&I loans	$	187	$	1,139	$	1,447	$	1,392	$	1,106	$	3,496	$	2,638	$	11,405



CRE loans
Risk rating:
Pass	$	384	$	2,362	$	1,206	$	812	$	665	$	1,232	$	161	$	6,822
Special mention	5		—		1		14		—		38		—		58
Substandard	—		—		—		3		13		33		—		49
Doubtful	—		—		—		—		—		—		—		—
Total CRE loans	$	389	$	2,362	$	1,207	$	829	$	678	$	1,303	$	161	$	6,929



REIT loans
Risk rating:
Pass	$	213	$	226	$	217	$	100	$	54	$	202	$	668	$	1,680
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	213	$	226	$	217	$	100	$	54	$	202	$	668	$	1,680



Residential mortgage loans
Risk rating:
Pass	$	538	$	2,988	$	1,672	$	989	$	466	$	1,093	$	42	$	7,788
Special mention	—		—		1		—		2		5		—		8
Substandard	—		2		—		—		—		20		—		22
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	538	$	2,990	$	1,673	$	989	$	468	$	1,118	$	42	$	7,818



Tax-exempt loans
Risk rating:
Pass	$	165	$	297	$	169	$	56	$	109	$	871	$	—	$	1,667
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	165	$	297	$	169	$	56	$	109	$	871	$	—	$	1,667


	September 30, 2022
	Loans by origination fiscal year
$ in millions	2022		2021		2020		2019		2018		Prior		Revolving loans		Total
SBL
Risk rating:
Pass	$	14	$	27	$	72	$	44	$	36	$	41	$	15,063	$	15,297
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total SBL	$	14	$	27	$	72	$	44	$	36	$	41	$	15,063	$	15,297




C&I loans
Risk rating:
Pass	$	1,011	$	1,448	$	1,301	$	1,124	$	1,389	$	2,200	$	2,380	$	10,853
Special mention	10		28		3		37		—		82		6		166
Substandard	1		—		60		28		40		6		14		149
Doubtful	—		—				—		5		—		—		5
Total C&I loans	$	1,022	$	1,476	$	1,364	$	1,189	$	1,434	$	2,288	$	2,400	$	11,173




CRE loans
Risk rating:
Pass	$	1,916	$	1,345	$	892	$	707	$	816	$	551	$	176	$	6,403
Special mention	—		1		—		—		36		2		—		39
Substandard	—		—		14		17		46		30		—		107
Doubtful	—		—		—		—		—		—		—		—
Total CRE loans	$	1,916	$	1,346	$	906	$	724	$	898	$	583	$	176	$	6,549




REIT loans
Risk rating:
Pass	$	169	$	230	$	96	$	53	$	40	$	222	$	782	$	1,592
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total REIT loans	$	169	$	230	$	96	$	53	$	40	$	222	$	782	$	1,592



Residential mortgage loans
Risk rating:
Pass	$	2,984	$	1,704	$	1,023	$	477	$	290	$	843	$	35	$	7,356
Special mention	1		1		—		2		—		4		—		8
Substandard	1		—		—		—		1		20		—		22
Doubtful	—		—		—		—		—		—		—		—
Total residential mortgage loans	$	2,986	$	1,705	$	1,023	$	479	$	291	$	867	$	35	$	7,386




Tax-exempt loans
Risk rating:
Pass	$	264	$	169	$	56	$	115	$	192	$	705	$	—	$	1,501
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total tax-exempt loans	$	264	$	169	$	56	$	115	$	192	$	705	$	—	$	1,501

We also monitor the credit quality of the residential mortgage loan portfolio utilizing 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. The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination.


	December 31, 2022
	Loans by origination fiscal year
$ in millions	2023		2022		2021		2020		2019		Prior		Revolving loans		Total
FICO score:
Below 600	$	1	$	1	$	3	$	2	$	3	$	55	$	—	$	65
600 - 699	30		156		109		89		31		85		4		504
700 - 799	435		2,411		1,274		721		342		667		26		5,876
800 +	72		419		283		176		86		306		9		1,351
FICO score not available	—		3		4		1		6		5		3		22
Total	$	538	$	2,990	$	1,673	$	989	$	468	$	1,118	$	42	$	7,818

LTV ratio:
Below 80%	$	387	$	2,287	$	1,308	$	776	$	350	$	856	$	37	$	6,001
80%+	151		703		365		213		118		262		5		1,817
Total	$	538	$	2,990	$	1,673	$	989	$	468	$	1,118	$	42	$	7,818


	September 30, 2022
	Loans by origination fiscal year
$ in millions	2022		2021		2020		2019		2018		Prior		Revolving loans		Total
FICO score:
Below 600	$	1	$	3	$	2	$	3	$	1	$	54	$	—	$	64
600 - 699	155		112		90		32		20		68		4		481
700 - 799	2,403		1,301		744		353		219		470		22		5,512
800 +	424		284		184		87		48		273		6		1,306
FICO score not available	3		5		3		4		3		2		3		23
Total	$	2,986	$	1,705	$	1,023	$	479	$	291	$	867	$	35	$	7,386

LTV ratio:
Below 80%	$	2,287	$	1,333	$	797	$	358	$	226	$	661	$	31	$	5,693
80%+	699		372		226		121		65		206		4		1,693
Total	$	2,986	$	1,705	$	1,023	$	479	$	291	$	867	$	35	$	7,386


$ in millions	SBL			C&I loans			CRE loans			REIT loans			Residential mortgage loans			Tax-exempt loans			Total
Three months ended December 31, 2022
Balance at beginning of period	$	3		$	226		$	87		$	21		$	57		$	2		$	396



Provision/(benefit) for credit losses	1			—			2			(6)			17			—			14

Net (charge-offs)/recoveries:
Charge-offs	—			(4)			(1)			—			—			—			(5)
Recoveries	—			—			3			—			—			—			3
Net (charge-offs)/recoveries	—			(4)			2			—			—			—			(2)
Foreign exchange translation adjustment	—			—			—			—			—			—			—
Balance at end of period	$	4		$	222		$	91		$	15		$	74		$	2		$	408
ACL by loan portfolio segment as a % of total ACL	1.0		%	54.4		%	22.3		%	3.7		%	18.1		%	0.5		%	100.0		%
















Three months ended December 31, 2021
Balance at beginning of period	$	4		$	191		$	66		$	22		$	35		$	2		$	320

Provision/(benefit) for credit losses	(1)			(10)			6			—			(6)			—			(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	$	3		$	179		$	72		$	22		$	30		$	2		$	308
ACL by loan portfolio segment as a % of total ACL	1.0		%	58.2		%	23.4		%	7.1		%	9.7		%	0.6		%	100.0		%

The allowance for credit losses on held for investment bank loans increased $12 million during the three months ended December 31, 2022 resulting from a $14 million provision for credit losses, primarily due to a weaker macroeconomic outlook, primarily on the residential mortgage portfolio, and the impact of loan growth during the quarter.

Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 of our 2022 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, 2022			September 30, 2022
Affiliated with the firm as of period-end (1)	$	1,143		$	1,173
No longer affiliated with the firm as of period-end (2)	9			8
Total loans to financial advisors	1,152			1,181
Allowance for credit losses	(30)			(29)
Loans to financial advisors, net	$	1,122		$	1,152
Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”)	$	5		$	5
Allowance for credit losses as a percent of total loans to financial advisors	2.60		%	2.46		%