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BANK LOANS, NET (Tables)
 9 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The following table presents the balances for held for investment loans by portfolio segment and held for sale loans.
$ in millionsJune 30, 2023September 30, 2022
SBL$14,227 $15,297 
C&I loans10,663 11,173 
CRE loans7,091 6,549 
REIT loans1,715 1,592 
Residential mortgage loans8,422 7,386 
Tax-exempt loans1,548 1,501 
Total loans held for investment43,666 43,498 
Held for sale loans135 137 
Total loans held for sale and investment43,801 43,635 
Allowance for credit losses(456)(396)
Bank loans, net (1)
$43,345 $43,239 
ACL as a % of total loans held for investment1.04 %0.91 %
Accrued interest receivable on bank loans (included in “Other receivables, net”)$197 $137 

(1) Bank loans, net as of June 30, 2023 and September 30, 2022 are presented net of $68 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 purchase discount on bank loans acquired in the TriState Capital acquisition. See Note 3 of our 2022 Form 10-K for further information.
The following table presents the balances for our loans to financial advisors and the related accrued interest receivable.
$ in millionsJune 30, 2023September 30, 2022
Affiliated with the firm as of period-end (1)
$1,142 $1,173 
No longer affiliated with the firm as of period-end (2)
11 8 
Total loans to financial advisors1,153 1,181 
Allowance for credit losses(31)(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
2.69 %2.46 %

(1) These loans were predominantly current.
(2) These loans were predominantly past due for a period of 180 days or more.
Loan Purchases and Sales
The following table presents purchases and sales of loans held for investment by portfolio segment.
$ in millionsC&I loansCRE loansREIT loansResidential mortgage loansTotal
Three months ended June 30, 2023
Purchases$3 $— $— $94 $97 
Sales$441 $— $— $— $441 
Nine months ended June 30, 2023
Purchases$360 $39 $24 $394 $817 
Sales$588 $— $— $— $588 
Three months ended June 30, 2022
Purchases$439 $— $— $383 $822 
Sales$33 $— $— $— $33 
Nine months ended June 30, 2022
Purchases$1,219 $— $— $790 $2,009 
Sales$145 $— $— $— $145 
Analysis of the Payment Status of Loans Held for Investment
The following table presents information on delinquency status of our loans held for investment.
$ in millions30-89 days and accruing90 days or more and accruing Total past due and accruingNonaccrual with allowanceNonaccrual with no allowanceCurrent and accruingTotal loans held for investment
June 30, 2023      
SBL$— $— $— $— $— $14,227 $14,227 
C&I loans— — — 75 — 10,588 10,663 
CRE loans— — — 29 14 7,048 7,091 
REIT loans— — — — — 1,715 1,715 
Residential mortgage loans2 — 2 — 9 8,411 8,422 
Tax-exempt loans— — — — — 1,548 1,548 
Total loans held for investment$2 $— $2 $104 $23 $43,537 $43,666 
September 30, 2022      
SBL$— $— $— $— $— $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 loans4 — 4 — 14 7,368 7,386 
Tax-exempt loans— — — — — 1,501 1,501 
Total loans held for investment$4 $— $4 $44 $30 $43,420 $43,498 
Loans Pledged as Collateral
Loan type ($ in millions)
Nature of collateralJune 30, 2023September 30, 2022
C&I loansCommercial real estate and other business assets$9 $11 
CRE loansOffice, healthcare, industrial, and retail real estate$42 $21 
Residential mortgage loansSingle family homes$4 $6 
Credit Quality of Held for Investment Loan Portfolio
The following tables present our held for investment bank loan portfolio by credit quality indicator. Loans classified as special mention, substandard or doubtful are all considered to be “criticized” loans.
June 30, 2023
Loans by origination fiscal year
$ in millions20232022202120202019PriorRevolving loansTotal
SBL
Risk rating:
Pass$20$18$83$44$16$38$13,999$14,218
Special mention (1)
——————44
Substandard (1)
——————55
Doubtful————————
Total SBL$20$18$83$44$16$38$14,008$14,227
C&I loans
Risk rating:
Pass$551$1,142$1,115$1,109$974$2,904$2,646$10,441
Special mention—1029——19765
Substandard———61186315157
Doubtful————————
Total C&I loans$551$1,152$1,144$1,170$992$2,986$2,668$10,663
CRE loans
Risk rating:
Pass$776$2,356$1,151$787$618$1,040$209$6,937
Special mention7—534—22—68
Substandard———21272—86
Doubtful————————
Total CRE loans$783$2,356$1,156$823$630$1,134$209$7,091
REIT loans
Risk rating:
Pass$279$201$211$103$55$175$691$1,715
Special mention————————
Substandard————————
Doubtful————————
Total REIT loans$279$201$211$103$55$175$691$1,715
Residential mortgage loans
Risk rating:
Pass$1,407$2,921$1,630$939$446$1,020$33$8,396
Special mention——2—24—8
Substandard—2———16—18
Doubtful————————
Total residential mortgage loans$1,407$2,923$1,632$939$448$1,040$33$8,422
Tax-exempt loans
Risk rating:
Pass$90$297$162$56$100$843$—$1,548
Special mention————————
Substandard————————
Doubtful————————
Total tax-exempt loans$90$297$162$56$100$843$—$1,548

(1) These balances relate to loans which were collateralized by private securities or securities with a limited trading market as of June 30, 2023.
September 30, 2022
Loans by origination fiscal year
$ in millions20222021202020192018PriorRevolving loansTotal
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 mention1028337—826166
Substandard1—602840614149
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——362—39
Substandard——14174630—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 mention11—2—4—8
Substandard1———120—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
The following table presents the held for investment residential mortgage loan portfolio by FICO score and by LTV ratio at origination.
June 30, 2023
Loans by origination fiscal year
$ in millions20232022202120202019PriorRevolving loansTotal
FICO score:
Below 600$7$1$3$2$3$55$—$71
600 - 699791551068530803538
700 - 7991,1102,3531,239681327624236,357
800 +2094122801708327761,437
FICO score not available224154119
Total$1,407$2,923$1,632$939$448$1,040$33$8,422
LTV ratio:
Below 80%$974$2,243$1,276$732$334$801$31$6,391
80%+43368035620711423922,031
Total$1,407$2,923$1,632$939$448$1,040$33$8,422

September 30, 2022
Loans by origination fiscal year
$ in millions20222021202020192018PriorRevolving loansTotal
FICO score:
Below 600$1$3$2$3$1$54$—$64
600 - 699155112903220684481
700 - 7992,4031,301744353219470225,512
800 +424284184874827361,306
FICO score not available353432323
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%+6993722261216520641,693
Total$2,986$1,705$1,023$479$291$867$35$7,386
Allowance for credit losses

The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment.
$ in millionsSBLC&I loansCRE loansREIT loansResidential mortgage loansTax-exempt loansTotal
Three months ended June 30, 2023     
Balance at beginning of period
$5 $219 $100 $15 $74 $2 $415 
Provision/(benefit) for credit losses— (8)55 1 6 — 54 
Net (charge-offs)/recoveries:
      
Charge-offs— (6)(9)— — — (15)
Recoveries— — — — — — — 
Net (charge-offs)/recoveries
— (6)(9)— — — (15)
Foreign exchange translation adjustment
— 1 1 — — — 2 
Balance at end of period
$5 $206 $147 $16 $80 $2 $456 
ACL by loan portfolio segment as a % of total ACL1.1 %45.3 %32.2 %3.5 %17.5 %0.4 %100.0 %
Nine months ended June 30, 2023
Balance at beginning of period
$3 $226 $87 $21 $57 $2 $396 
Provision/(benefit) for credit losses2 10 66 (5)23 — 96 
Net (charge-offs)/recoveries:
     
Charge-offs— (30)(10)— — — (40)
Recoveries— — 3 — — — 3 
Net (charge-offs)/recoveries
— (30)(7)— — — (37)
Foreign exchange translation adjustment
— — 1 — — — 1 
Balance at end of period
$5 $206 $147 $16 $80 $2 $456 
ACL by loan portfolio segment as a % of total ACL1.1 %45.3 %32.2 %3.5 %17.5 %0.4 %100.0 %
Three months ended June 30, 2022
Balance at beginning of period
$3 $195 $71 $25 $32 $2 $328 
Initial allowance on acquired purchased credit deteriorated (“PCD”) loans— 1 2 — — — 3 
Provision/(benefit) for credit losses:
Initial provision for credit losses on non-PCD loans acquired with TriState Capital Bank2 5 19 — — — 26 
Provision/(benefit) for credit losses(1)17 — (2)16 — 30 
Total provision/(benefit) for credit losses1 22 19 (2)16 — 56 
Net (charge-offs)/recoveries:
     
Charge-offs— (11)(4)— — — (15)
Recoveries— — 5 — — — 5 
Net (charge-offs)/recoveries— (11)1 — — — (10)
Foreign exchange translation adjustment
— — — — — — — 
Balance at end of period
$4 $207 $93 $23 $48 $2 $377 
ACL by loan portfolio segment as a % of total ACL1.1 %54.9 %24.7 %6.1 %12.7 %0.5 %100.0 %
Nine months ended June 30, 2022
Balance at beginning of period
$4 $191 $66 $22 $35 $2 $320 
Initial allowance on acquired PCD loans— 1 2 — — — 3 
Provision/(benefit) for credit losses:
Initial provision for credit losses on non-PCD loans acquired with TriState Capital Bank2 5 19 — — — 26 
Provision/(benefit) for credit losses(2)24 5 1 12 — 40 
Total provision/(benefit) for credit losses— 29 24 1 12 — 66 
Net (charge-offs)/recoveries:
    
Charge-offs— (14)(4)— — — (18)
Recoveries— — 5 — 1 — 6 
Net (charge-offs)/recoveries
— (14)1 — 1 — (12)
Foreign exchange translation adjustment
— — — — — — — 
Balance at end of period
$4 $207 $93 $23 $48 $2 $377 
ACL by loan portfolio segment as a % of total ACL1.1 %54.9 %24.7 %6.1 %12.7 %0.5 %100.0 %
Changes in the Allowance for Loan Losses
The following table presents changes in the allowance for credit losses on held for investment bank loans by portfolio segment.
$ in millionsSBLC&I loansCRE loansREIT loansResidential mortgage loansTax-exempt loansTotal
Three months ended June 30, 2023     
Balance at beginning of period
$5 $219 $100 $15 $74 $2 $415 
Provision/(benefit) for credit losses— (8)55 1 6 — 54 
Net (charge-offs)/recoveries:
      
Charge-offs— (6)(9)— — — (15)
Recoveries— — — — — — — 
Net (charge-offs)/recoveries
— (6)(9)— — — (15)
Foreign exchange translation adjustment
— 1 1 — — — 2 
Balance at end of period
$5 $206 $147 $16 $80 $2 $456 
ACL by loan portfolio segment as a % of total ACL1.1 %45.3 %32.2 %3.5 %17.5 %0.4 %100.0 %
Nine months ended June 30, 2023
Balance at beginning of period
$3 $226 $87 $21 $57 $2 $396 
Provision/(benefit) for credit losses2 10 66 (5)23 — 96 
Net (charge-offs)/recoveries:
     
Charge-offs— (30)(10)— — — (40)
Recoveries— — 3 — — — 3 
Net (charge-offs)/recoveries
— (30)(7)— — — (37)
Foreign exchange translation adjustment
— — 1 — — — 1 
Balance at end of period
$5 $206 $147 $16 $80 $2 $456 
ACL by loan portfolio segment as a % of total ACL1.1 %45.3 %32.2 %3.5 %17.5 %0.4 %100.0 %
Three months ended June 30, 2022
Balance at beginning of period
$3 $195 $71 $25 $32 $2 $328 
Initial allowance on acquired purchased credit deteriorated (“PCD”) loans— 1 2 — — — 3 
Provision/(benefit) for credit losses:
Initial provision for credit losses on non-PCD loans acquired with TriState Capital Bank2 5 19 — — — 26 
Provision/(benefit) for credit losses(1)17 — (2)16 — 30 
Total provision/(benefit) for credit losses1 22 19 (2)16 — 56 
Net (charge-offs)/recoveries:
     
Charge-offs— (11)(4)— — — (15)
Recoveries— — 5 — — — 5 
Net (charge-offs)/recoveries— (11)1 — — — (10)
Foreign exchange translation adjustment
— — — — — — — 
Balance at end of period
$4 $207 $93 $23 $48 $2 $377 
ACL by loan portfolio segment as a % of total ACL1.1 %54.9 %24.7 %6.1 %12.7 %0.5 %100.0 %
Nine months ended June 30, 2022
Balance at beginning of period
$4 $191 $66 $22 $35 $2 $320 
Initial allowance on acquired PCD loans— 1 2 — — — 3 
Provision/(benefit) for credit losses:
Initial provision for credit losses on non-PCD loans acquired with TriState Capital Bank2 5 19 — — — 26 
Provision/(benefit) for credit losses(2)24 5 1 12 — 40 
Total provision/(benefit) for credit losses— 29 24 1 12 — 66 
Net (charge-offs)/recoveries:
    
Charge-offs— (14)(4)— — — (18)
Recoveries— — 5 — 1 — 6 
Net (charge-offs)/recoveries
— (14)1 — 1 — (12)
Foreign exchange translation adjustment
— — — — — — — 
Balance at end of period
$4 $207 $93 $23 $48 $2 $377 
ACL by loan portfolio segment as a % of total ACL1.1 %54.9 %24.7 %6.1 %12.7 %0.5 %100.0 %