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BANK LOANS, NET (Tables)
 3 Months Ended
Dec. 31, 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 millionsDecember 31, 2023September 30, 2023
SBL$14,647 $14,606 
C&I loans10,503 10,406 
CRE loans7,331 7,221 
REIT loans1,697 1,668 
Residential mortgage loans8,861 8,662 
Tax-exempt loans1,411 1,541 
Total loans held for investment44,450 44,104 
Held for sale loans211 145 
Total loans held for sale and investment44,661 44,249 
Allowance for credit losses(479)(474)
Bank loans, net (1)
$44,182 $43,775 
ACL as a % of total loans held for investment1.08 %1.07 %
Accrued interest receivable on bank loans (included in “Other receivables, net”)$212 $200 
(1)Bank loans, net as of December 31, 2023 and September 30, 2023 are presented net of $37 million and $52 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 Holdings, Inc. acquisition. See Note 3 of our 2023 Form 10-K for additional information.The following table presents the balances for our loans to financial advisors and the related accrued interest receivable.
$ in millionsDecember 31, 2023September 30, 2023
Affiliated with the firm as of period-end (1)
$1,206 $1,158 
No longer affiliated with the firm as of period-end (2)
13 10 
Total loans to financial advisors1,219 1,168 
Allowance for credit losses(35)(32)
Loans to financial advisors, net$1,184 $1,136 
Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”)
$6 $6 
Allowance for credit losses as a percent of total loans to financial advisors
2.87 %2.74 %

(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 December 31, 2023
Purchases$206 $— $— $45 $251 
Sales$119 $— $— $— $119 
Three months ended December 31, 2022
Purchases$163 $39 $24 $190 $416 
Sales$— $— $— $— $— 
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
December 31, 2023      
SBL$7 $— $7 $— $— $14,640 $14,647 
C&I loans3 — 3 64 — 10,436 10,503 
CRE loans— — — 81 12 7,238 7,331 
REIT loans— — — — — 1,697 1,697 
Residential mortgage loans5 — 5 — 7 8,849 8,861 
Tax-exempt loans— — — — — 1,411 1,411 
Total loans held for investment$15 $— $15 $145 $19 $44,271 $44,450 
September 30, 2023      
SBL$9 $— $9 $— $— $14,597 $14,606 
C&I loans— — — 69 2 10,335 10,406 
CRE loans— — — 35 13 7,173 7,221 
REIT loans— — — — — 1,668 1,668 
Residential mortgage loans2 — 2 — 9 8,651 8,662 
Tax-exempt loans— — — — — 1,541 1,541 
Total loans held for investment$11 $— $11 $104 $24 $43,965 $44,104 
Loans Pledged as Collateral The following table presents the amortized cost of our collateral-dependent loans and the nature of the collateral.
Loan type ($ in millions)
Nature of collateralDecember 31, 2023September 30, 2023
C&I loansCommercial real estate and other business assets$9 $11 
CRE loansOffice, multi-family residential, healthcare, and industrial real estate$146 $47 
Residential mortgage loansSingle family homes$4 $5 
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.
As of and for the three months ended December 31, 2023
Loans by origination fiscal year
$ in millions20242023202220212020PriorRevolving loansTotal
SBL
Risk rating:
Pass$31$47$19$82$36$74$14,339$14,628
Special mention
————————
Substandard (1)
19——————19
Doubtful————————
Total SBL$50$47$19$82$36$74$14,339$14,647
Gross charge-offs
$—$—$—$—$—$—$—$—
C&I loans
Risk rating:
Pass$138$732$1,206$1,067$877$3,457$2,784$10,261
Special mention——5—68—376
Substandard———29625916166
Doubtful————————
Total C&I loans$138$732$1,211$1,096$1,007$3,516$2,803$10,503
Gross charge-offs
$—$—$—$1$—$5$—$6
CRE loans
Risk rating:
Pass$131$1,182$2,317$1,107$739$1,411$255$7,142
Special mention—6——1419—39
Substandard———532113—150
Doubtful————————
Total CRE loans$131$1,188$2,317$1,112$785$1,543$255$7,331
Gross charge offs
$—$—$—$—$—$2$—$2
REIT loans
Risk rating:
Pass$51$236$184$232$103$311$580$1,697
Special mention————————
Substandard————————
Doubtful————————
Total REIT loans$51$236$184$232$103$311$580$1,697
Gross charge-offs
$—$—$—$—$—$—$—$—
Residential mortgage loans
Risk rating:
Pass$323$1,747$2,857$1,588$903$1,388$33$8,839
Special mention——2——5—7
Substandard——2——13—15
Doubtful————————
Total residential mortgage loans$323$1,747$2,861$1,588$903$1,406$33$8,861
Gross charge-offs
$—$—$—$—$—$—$—$—
Tax-exempt loans
Risk rating:
Pass$—$57$270$160$54$870$—$1,411
Special mention————————
Substandard————————
Doubtful————————
Total tax-exempt loans$—$57$270$160$54$870$—$1,411
Gross charge-offs
$—$—$—$—$—$—$—$—

(1)As of December 31, 2023, these balances relate to loans which were collateralized by private securities or other financial instruments with a limited trading market.
September 30, 2023
Loans by origination fiscal year
$ in millions20232022202120202019PriorRevolving loansTotal
SBL
Risk rating:
Pass$74$18$83$40$15$59$14,293$14,582
Special mention————————
Substandard (1)
——————2424
Doubtful————————
Total SBL$74$18$83$40$15$59$14,317$14,606
C&I loans
Risk rating:
Pass$672$1,148$1,091$965$1,020$2,675$2,564$10,135
Special mention—52969——4107
Substandard———62176517161
Doubtful
—————3—3
Total C&I loans$672$1,153$1,120$1,096$1,037$2,743$2,585$10,406
CRE loans
Risk rating:
Pass$1,130$2,344$1,115$766$604$845$220$7,024
Special mention7——14555—81
Substandard——5321267—116
Doubtful————————
Total CRE loans$1,137$2,344$1,120$812$621$967$220$7,221
REIT loans
Risk rating:
Pass$258$200$214$101$172$176$547$1,668
Special mention————————
Substandard————————
Doubtful————————
Total REIT loans$258$200$214$101$172$176$547$1,668
Residential mortgage loans
Risk rating:
Pass$1,765$2,889$1,607$919$433$992$31$8,636
Special mention——2—25—9
Substandard—2—1—14—17
Doubtful————————
Total residential mortgage loans$1,765$2,891$1,609$920$435$1,011$31$8,662
Tax-exempt loans
Risk rating:
Pass$147$279$161$54$97$803$—$1,541
Special mention————————
Substandard————————
Doubtful————————
Total tax-exempt loans$147$279$161$54$97$803$—$1,541

(1)As of September 30, 2023, these balances relate to loans which were collateralized by private securities or other financial instruments with a limited trading market.
The following table presents the held for investment residential mortgage loan portfolio by LTV ratio at origination and by FICO score.
December 31, 2023
Loans by origination fiscal year
$ in millions20242023202220212020PriorRevolving loansTotal
FICO score:
Below 600$—$4$11$3$3$16$—$37
600 - 69923831026533803389
700 - 7992401,2801,581867525770225,285
800 +603761,16765134153773,139
FICO score not available—4—213111
Total$323$1,747$2,861$1,588$903$1,406$33$8,861
LTV ratio:
Below 80%$232$1,230$2,196$1,241$703$1,073$32$6,707
80%+9151766534720033312,154
Total$323$1,747$2,861$1,588$903$1,406$33$8,861

September 30, 2023
Loans by origination fiscal year
$ in millions20222021202020192018PriorRevolving loansTotal
FICO score:
Below 600$7$1$3$2$3$55$—$71
600 - 699991541068330794555
700 - 7991,3812,3271,218666320609206,541
800 +2744072791687726561,476
FICO score not available423153119
Total$1,765$2,891$1,609$920$435$1,011$31$8,662
LTV ratio:
Below 80%$1,244$2,218$1,257$716$323$780$29$6,567
80%+52167335220411223122,095
Total$1,765$2,891$1,609$920$435$1,011$31$8,662
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 December 31, 2023     
Balance at beginning of period
$7 $214 $161 $16 $74 $2 $474 
Provision/(benefit) for credit losses— 3 14 1 (6)— 12 
Net (charge-offs)/recoveries:
     
Charge-offs— (6)(2)— — — (8)
Recoveries— — — — — — — 
Net (charge-offs)/recoveries
— (6)(2)— — — (8)
Foreign exchange translation adjustment
— — 1 — — — 1 
Balance at end of period
$7 $211 $174 $17 $68 $2 $479 
ACL by loan portfolio segment as a % of total ACL1.5 %44.1 %36.3 %3.5 %14.2 %0.4 %100.0 %
Three months ended December 31, 2022
Balance at beginning of period
$3 $226 $87 $21 $57 $2 $396 
Provision/(benefit) for credit losses1 — 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 ACL1.0 %54.4 %22.3 %3.7 %18.1 %0.5 %100.0 %