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BANK LOANS, NET
 12 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
BANK LOANS, NET BANK LOANS, NET
Bank client receivables are comprised of loans originated or purchased by our Bank segment and include SBL, C&I loans, CRE loans, 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 for a discussion of 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 unamortized purchase discounts or premiums, unearned income, deferred origination fees and costs, and charge-offs), except for certain held for sale loans recorded at fair value. Bank loans are presented on our Consolidated Statements of Financial Condition at amortized cost less the allowance for credit losses or fair value where applicable.
The following table presents the balances for held for investment loans by portfolio segment and held for sale loans.
September 30,
$ in millions20252024
SBL$19,775 $16,233 
C&I loans10,777 9,953 
CRE loans7,840 7,615 
REIT loans1,690 1,716 
Residential mortgage loans10,295 9,412 
Tax-exempt loans1,226 1,338 
Total loans held for investment51,603 46,267 
Held for sale loans416 184 
Total loans held for sale and investment52,019 46,451 
Allowance for credit losses(452)(457)
Bank loans, net
$51,567 $45,994 
ACL as a % of total loans held for investment0.88 %0.99 %
Accrued interest receivable on bank loans (included in “Other receivables, net”)$216 $214 

See Note 6 for additional information regarding bank loans pledged with the FHLB and FRB and Note 15 for additional information regarding borrowings from the FHLB.

Held for sale loans

We originated or purchased $3.57 billion, $2.80 billion, and $2.74 billion of loans held for sale during the years ended September 30, 2025, 2024, and 2023, respectively. The majority of these loans were purchases of the guaranteed portions of 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 these loans held for sale and not securitized amounted to $1.08 billion, $618 million, and $835 million for the years ended September 30, 2025, 2024 and 2023, respectively. Net gains resulting from such sales were insignificant for each of the years ended September 30, 2025, 2024, and 2023.

Purchases and sales of loans held for investment

The following table presents purchases and sales of loans held for investment by portfolio segment.
$ in millionsC&I loansCRE loansREIT loansResidential mortgage loansTotal
Year ended September 30, 2025
Purchases$1,003 $— $14 $287 

$1,304 
Sales $219 $13 $— $— $232 
Year ended September 30, 2024
Purchases$1,038 $— $5 $296 $1,339 
Sales $376 $— $9 $— $385 
Year ended September 30, 2023
Purchases$465 $39 $24 $456 $984 
Sales $643 $— $— $— $643 

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, corporate loan sales generally occur as part of our credit management activities.
Past due, nonaccrual, and modified loans

The following table presents information on delinquency status of our loans held for investment.
$ in millions30-89
days and accruing		90 days
or more and accruing		Total past due and accruingNonaccrual with allowanceNonaccrual with no allowanceCurrent and accruingTotal loans held for
investment
September 30, 2025     
SBL$1 $— $1 $— $— $19,774 $19,775 
C&I loans
1 — 1 39 5 10,732 10,777 
CRE loans— — — 101 9 7,730 7,840 
REIT loans— — — 19 — 1,671 1,690 
Residential mortgage loans5 — 5 — 13 10,277 10,295 
Tax-exempt loans
— — — — — 1,226 1,226 
Total loans held for investment
$7 $— $7 $159 $27 $51,410 $51,603 
September 30, 2024     
SBL$3 $— $3 $— $— $16,230 $16,233 
C&I loans— — — 58 — 9,895 9,953 
CRE loans— — — 67 18 7,530 7,615 
REIT loans— — — 19 — 1,697 1,716 
Residential mortgage loans3 — 3 — 13 9,396 9,412 
Tax-exempt loans— — — — — 1,338 1,338 
Total loans held for investment$6 $— $6 $144 $31 $46,086 $46,267 
The preceding table included $109 million and $89 million at September 30, 2025 and 2024, respectively, of nonaccrual loans which were current pursuant to their contractual terms.

As more fully described in Note 2, in the normal course of business, we may modify the original terms of a loan agreement to a borrower experiencing financial difficulty, which may include a borrower in default, financial distress, bankruptcy, or other circumstances. Loans to borrowers experiencing financial difficulty modified during the years ended September 30, 2025 and 2024 were not significant.

Collateral-dependent loans

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. The following table presents the amortized cost of our collateral-dependent loans and the nature of the collateral.
September 30,
$ in millions
Nature of collateral20252024
C&I loansCommercial real estate and other business assets$13 $9 
CRE loansOffice, hospitality, multi-family residential, industrial, healthcare, and medical office real estate$165 $115 
REIT loansOffice real estate$113 $— 
Residential mortgage loansSingle family homes$9 $8 
Credit quality indicators

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.

Special Mention – Loans which have potential weaknesses that deserve management’s close attention. These loans are not adversely classified and do not expose us to sufficient risk to warrant an adverse classification.

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.
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 year ended September 30, 2025
Loans by origination fiscal year
$ in millions20252024202320222021PriorRevolving loansTotal
SBL
Risk rating:
Pass$21$62$30$20$29$43$19,485$19,690
Special mention (1)
——————8585
Substandard
————————
Doubtful————————
Total SBL$21$62$30$20$29$43$19,570$19,775
Gross charge-offs
$—$—$—$—$—$—$—$—
C&I loans
Risk rating:
Pass$746$743$366$1,016$849$3,495$3,455$10,670
Special mention——161——320
Substandard—1——2642087
Doubtful————————
Total C&I loans$746$744$382$1,017$851$3,559$3,478$10,777
Gross charge-offs
$—$—$—$—$—$32$1$33
CRE loans
Risk rating:
Pass$1,333$789$1,023$1,698$599$1,473$612$7,527
Special mention——2590—7—122
Substandard——2786—55—168
Doubtful—————23—23
Total CRE loans$1,333$789$1,075$1,874$599$1,558$612$7,840
Gross charge-offs
$—$—$—$—$—$11$1$12
REIT loans
Risk rating:
Pass$289$128$158$59$113$241$570$1,558
Special mention————————
Substandard——19—113——132
Doubtful————————
Total REIT loans$289$128$177$59$226$241$570$1,690
Gross charge-offs
$—$—$—$—$—$—$—$—
Residential mortgage loans
Risk rating:
Pass$1,810$1,206$1,465$2,511$1,389$1,849$42$10,272
Special mention———113—5
Substandard———6—12—18
Doubtful————————
Total residential mortgage loans$1,810$1,206$1,465$2,518$1,390$1,864$42$10,295
Gross charge-offs
$—$—$—$—$—$1$—$1
Tax-exempt loans
Risk rating:
Pass$49$62$57$215$144$699$—$1,226
Special mention————————
Substandard————————
Doubtful————————
Total tax-exempt loans$49$62$57$215$144$699$—$1,226
Gross charge-offs
$—$—$—$—$—$—$—$—

(1)As of September 30, 2025, this balance related to a loan which was collateralized by private securities.
September 30, 2024
Loans by origination fiscal year
$ in millions20242023202220212020PriorRevolving loansTotal
SBL
Risk rating:
Pass$131$30$15$76$27$52$15,900$16,231
Special mention————————
Substandard (1)
2——————2
Doubtful————————
Total SBL$133$30$15$76$27$52$15,900$16,233
Gross charge-offs
$—$—$—$—$—$—$—$—
C&I loans
Risk rating:
Pass$616$454$1,178$716$586$3,287$2,966$9,803
Special mention—41—541—60
Substandard————46251283
Doubtful—————527
Total C&I loans$616$458$1,179$716$686$3,318$2,980$9,953
Gross charge-offs
$—$—$—$3$4$38$—$45
CRE loans
Risk rating:
Pass$873$1,156$2,082$930$706$1,111$435$7,293
Special mention—3076—1416—136
Substandard—589598916186
Doubtful————————
Total CRE loans$873$1,244$2,167$935$729$1,216$451$7,615
Gross charge-offs
$—$—$—$—$—$21$—$21
REIT loans
Risk rating:
Pass$172$250$167$135$55$195$564$1,538
Special mention————————
Substandard—19——40—119178
Doubtful————————
Total REIT loans$172$269$167$135$95$195$683$1,716
Gross charge-offs
$—$—$—$—$—$—$—$—
Residential mortgage loans
Risk rating:
Pass$1,373$1,637$2,725$1,493$858$1,260$39$9,385
Special mention——11—5—7
Substandard——8——12—20
Doubtful————————
Total residential mortgage loans$1,373$1,637$2,734$1,494$858$1,277$39$9,412
Gross charge-offs
$—$—$—$—$—$—$—$—
Tax-exempt loans
Risk rating:
Pass$62$57$248$153$52$766$—$1,338
Special mention————————
Substandard————————
Doubtful————————
Total tax-exempt loans$62$57$248$153$52$766$—$1,338
Gross charge-offs
$—$—$—$—$—$—$—$—

(1)As of September 30, 2024, this balance related to a loan which was collateralized by certain securities with a limited trading market.
We also monitor the credit quality of the residential mortgage loan portfolio utilizing FICO scores and 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 LTV ratio at origination and by FICO score.
September 30, 2025
Loans by origination fiscal year
$ in millions20252024202320222021PriorRevolving loansTotal
FICO score:
Below 600$5$5$11$17$7$18$—$63
600 - 6997460669643905434
700 - 7991,4247478151,4197441,026296,204
800 +30639257298659472783,585
FICO score not available121—23—9
Total$1,810$1,206$1,465$2,518$1,390$1,864$42$10,295
LTV ratio:
Below 80%$1,271$874$1,037$1,926$1,100$1,432$41$7,681
80%+53933242859229043212,614
Total$1,810$1,206$1,465$2,518$1,390$1,864$42$10,295

September 30, 2024
Loans by origination fiscal year
$ in millions20242023202220212020PriorRevolving loansTotal
FICO score:
Below 600$1$7$13$5$3$14$—$43
600 - 699795210752441245463
700 - 7991,0939921,564793469636235,570
800 +1975841,050642341499103,323
FICO score not available32—214113
Total$1,373$1,637$2,734$1,494$858$1,277$39$9,412
LTV ratio:
Below 80%$988$1,155$2,104$1,182$665$973$38$7,105
80%+38548263031219330412,307
Total$1,373$1,637$2,734$1,494$858$1,277$39$9,412
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
loans		Tax-exempt loansTotal
Year ended September 30, 2025     
Balance at beginning of year$6 $173 $188 $23 $65 $2 $457 
Provision/(benefit) for credit losses2 4 6 29 (3)(1)37 
Net (charge-offs)/recoveries:     
Charge-offs— (33)(12)— (1)— (46)
Recoveries— 4 1 — — — 5 
Net (charge-offs)/recoveries— (29)(11)— (1)— (41)
Foreign exchange translation adjustment— — (1)— — — (1)
Balance at end of year$8 $148 $182 $52 $61 $1 $452 
ACL by loan portfolio segment as a % of total ACL1.8 %32.7 %40.3 %11.5 %13.5 %0.2 %100.0 %
Year ended September 30, 2024     
Balance at beginning of year$7 $214 $161 $16 $74 $2 $474 
Provision/(benefit) for credit losses(1)1 48 7 (10)— 45 
Net (charge-offs)/recoveries:  
Charge-offs— (45)(21)— — — (66)
Recoveries— 3 — — 1 — 4 
Net (charge-offs)/recoveries— (42)(21)— 1 — (62)
Foreign exchange translation adjustment— — — — — — — 
Balance at end of year$6 $173 $188 $23 $65 $2 $457 
ACL by loan portfolio segment as a % of total ACL1.3 %38.0 %41.1 %5.0 %14.2 %0.4 %100.0 %
Year ended September 30, 2023
Balance at beginning of year$3 $226 $87 $21 $57 $2 $396 
Provision/(benefit) for credit losses4 32 84 (5)17 — 132 
Net (charge-offs)/recoveries:
Charge-offs— (45)(13)— — — (58)
Recoveries— 1 3 — — — 4 
Net (charge-offs)/recoveries— (44)(10)— — — (54)
Foreign exchange translation adjustment— — — — — — — 
Balance at end of year$7 $214 $161 $16 $74 $2 $474 
ACL by loan portfolio segment as a % of total ACL1.5 %45.1 %34.0 %3.4 %15.6 %0.4 %100.0 %

The allowance for credit losses on bank loans held for investment decreased $5 million during the year ended September 30, 2025, primarily resulting from net-charges off during the year, partially offset by the bank loan provision for credit losses of $37 million during the year. The bank loan provision for credit losses for the year ended September 30, 2025 primarily reflected the impacts of loan downgrades, charge-offs, and specific reserves on certain loans, partially offset by the favorable impacts of an improved economic forecast and reserve releases related to certain loan sales and paydowns.

The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Consolidated Statements of Financial Condition, was $24 million at September 30, 2025 and $22 million at both September 30, 2024 and 2023.
LOANS TO FINANCIAL ADVISORS, NET
Loans to financial advisors are primarily comprised of loans originated as a part of our recruiting activities. See Note 2 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.
September 30,
$ in millions20252024
Affiliated with the firm as of year end (1)
$1,658 $1,350 
No longer affiliated with the firm as of year end (2)
7 16 
Total loans to financial advisors1,665 1,366 
Allowance for credit losses(39)(40)
Loans to financial advisors, net$1,626 $1,326 
Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”)
$12 $9 
Allowance for credit losses as a percent of total loans to financial advisors
2.34 %2.93 %

(1)These loans were predominantly current.
(2)These loans were on nonaccrual status and predominantly past due for a period of 180 days or more.