XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.26.1

BANK LOANS, NET | 9 Months Ended
--- | ---
Jun. 30, 2026
Receivables [Abstract] |
BANK LOANS, NET | BANK LOANS, NET 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 2025 Form 10-K 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 Condensed Consolidated Statements of Financial Condition at amortized cost less the allowance for credit losses (“ACL”) or fair value where applicable. The following table presents the balances for held for investment loans by portfolio segment and held for sale loans.
$ in millions |  | June 30, 2026 |  | September 30, 2025
SBL |  | $ | 24,767 |  |  | $ | 19,775 |
C&I loans |  | 10,040 |  |  | 10,777 |
CRE loans |  | 7,689 |  |  | 7,840 |
REIT loans |  | 1,671 |  |  | 1,690 |
Residential mortgage loans |  | 11,223 |  |  | 10,295 |
Tax-exempt loans |  | 1,101 |  |  | 1,226 |
Total loans held for investment |  | 56,491 |  |  | 51,603 |
Held for sale loans |  | 134 |  |  | 416 |
Total loans held for sale and investment |  | 56,625 |  |  | 52,019 |
Allowance for credit losses |  | (398) |  |  | (452) |
Bank loans, net |  | $ | 56,227 |  |  | $ | 51,567 |
ACL as a % of total loans held for investment |  | 0.70 | % |  | 0.88 | %
Accrued interest receivable on bank loans (included in “Other receivables, net”) |  | $ | 218 |  |  | $ | 216 |
See Note 7 for additional information regarding bank loans pledged with the FHLB and FRB. Held for sale loans We originated or purchased $585 million and $1.80 billion of loans held for sale during the three and nine months ended June 30, 2026, respectively, and $877 million and $2.59 billion during the three and nine months ended June 30, 2025, 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 these loans held for sale and not securitized amounted to $123 million and $422 million during the three and nine months ended June 30, 2026, respectively, and $197 million and $859 million during the three and nine months ended June 30, 2025, respectively. Net gains resulting from such sales were insignificant for each of the three and nine months ended June 30, 2026 and 2025. Purchases and sales of loans held for investment The following table presents purchases and sales of loans held for investment by portfolio segment.
$ in millions |  |  |  | C&I loans |  | CRE loans |  | REIT loans |  |  |  | Residential mortgage loans |  | Total
Three months ended June 30, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases |  |  |  | $ | 102 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 4 |  |  | $ | 106 |
Sales |  |  |  | $ | 510 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 1 |  |  | $ | 511 |
Nine months ended June 30, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases |  |  |  | $ | 390 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 20 |  |  | $ | 410 |
Sales |  |  |  | $ | 614 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 1 |  |  | $ | 615 |
Three months ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases |  |  |  | $ | 156 |  |  | $ | — |  |  | $ | 14 |  |  |  |  | $ | 94 |  |  | $ | 264 |
Sales |  |  |  | $ | 103 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 103 |
Nine months ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases |  |  |  | $ | 802 |  |  | $ | — |  |  | $ | 14 |  |  |  |  | $ | 226 |  |  | $ | 1,042 |
Sales |  |  |  | $ | 180 |  |  | $ | 13 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 193 |
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 third parties during the respective period. As more fully described in Note 2 of our 2025 Form 10-K, 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 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
June 30, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |
SBL |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 24,767 |  |  | $ | 24,767 |
C&I loans |  | — |  |  | — |  |  | — |  |  | 27 |  |  | 18 |  |  | 9,995 |  |  | 10,040 |
CRE loans |  | — |  |  | — |  |  | — |  |  | 93 |  |  | 7 |  |  | 7,589 |  |  | 7,689 |
REIT loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,671 |  |  | 1,671 |
Residential mortgage loans |  | 10 |  |  | — |  |  | 10 |  |  | — |  |  | 6 |  |  | 11,207 |  |  | 11,223 |
Tax-exempt loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,101 |  |  | 1,101 |
Total loans held for investment |  | $ | 10 |  |  | $ | — |  |  | $ | 10 |  |  | $ | 120 |  |  | $ | 31 |  |  | $ | 56,330 |  |  | $ | 56,491 |
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 loans |  | 5 |  |  | — |  |  | 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 |
The preceding table included $66 million and $109 million at June 30, 2026 and September 30, 2025, respectively, of nonaccrual loans which were current pursuant to their contractual terms. As more fully described in Note 2 of our 2025 Form 10-K, 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 each of the three and nine months ended June 30, 2026 and 2025 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.
$ in millions |  | Nature of collateral |  | June 30, 2026 |  | September 30, 2025
C&I loans |  | Commercial real estate and other business assets |  | $ | 31 |  |  | $ | 13 |
CRE loans (1) |  | Office, multi-family residential, retail, hospitality, and industrial real estate |  | $ | 302 |  |  | $ | 165 |
REIT loans (1) |  | Office real estate |  | $ | — |  |  | $ | 113 |
Residential mortgage loans |  | Single family homes |  | $ | 3 |  |  | $ | 9 |
(1) During the nine months ended June 30, 2026, a certain loan was reassigned from the REIT loan portfolio to the CRE loan portfolio based on changes in the loan characteristics during the period. 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 nine months ended June 30, 2026
|  | Loans by origination fiscal year |  |  |  |  |  |
$ in millions |  | 2026 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  | Revolving loans |  |  |  | Total
SBL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 17 |  | $ | 11 |  | $ | 43 |  | $ | 31 |  | $ | 24 |  | $ | 70 |  | $ | 24,532 |  |  |  | $ | 24,728
Special mention (1) |  | — |  | — |  | — |  | — |  | — |  | — |  | 39 |  |  |  | 39
Substandard |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total SBL |  | $ | 17 |  | $ | 11 |  | $ | 43 |  | $ | 31 |  | $ | 24 |  | $ | 70 |  | $ | 24,571 |  |  |  | $ | 24,767
Gross charge-offs |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |  |  | $ | —
C&I loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 559 |  | $ | 576 |  | $ | 704 |  | $ | 288 |  | $ | 879 |  | $ | 3,301 |  | $ | 3,658 |  |  |  | $ | 9,965
Special mention |  | — |  | 1 |  | — |  | 12 |  | — |  | — |  | — |  |  |  | 13
Substandard |  | — |  | — |  | 1 |  | — |  | — |  | 32 |  | 8 |  |  |  | 41
Doubtful |  | — |  | — |  | — |  | — |  | — |  | 20 |  | 1 |  |  |  | 21
Total C&I loans |  | $ | 559 |  | $ | 577 |  | $ | 705 |  | $ | 300 |  | $ | 879 |  | $ | 3,353 |  | $ | 3,667 |  |  |  | $ | 10,040
Gross charge-offs |  | $ | — |  | $ | 1 |  | $ | — |  | $ | — |  | $ | 1 |  | $ | 7 |  | $ | — |  |  |  | $ | 9
CRE loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 870 |  | $ | 1,486 |  | $ | 527 |  | $ | 773 |  | $ | 1,227 |  | $ | 1,534 |  | $ | 819 |  |  |  | $ | 7,236
Special mention |  | — |  | — |  | 4 |  | 54 |  | 90 |  | — |  | — |  |  |  | 148
Substandard |  | — |  | — |  | 22 |  | 50 |  | 83 |  | 127 |  | — |  |  |  | 282
Doubtful |  | — |  | — |  | — |  | — |  | — |  | 23 |  | — |  |  |  | 23
Total CRE loans |  | $ | 870 |  | $ | 1,486 |  | $ | 553 |  | $ | 877 |  | $ | 1,400 |  | $ | 1,684 |  | $ | 819 |  |  |  | $ | 7,689
Gross charge offs |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 19 |  | $ | 3 |  | $ | — |  |  |  | $ | 22
REIT loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 231 |  | $ | 304 |  | $ | 68 |  | $ | 109 |  | $ | 58 |  | $ | 284 |  | $ | 617 |  |  |  | $ | 1,671
Special mention |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Substandard |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total REIT loans |  | $ | 231 |  | $ | 304 |  | $ | 68 |  | $ | 109 |  | $ | 58 |  | $ | 284 |  | $ | 617 |  |  |  | $ | 1,671
Gross charge-offs |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |  |  | $ | —
Residential mortgage loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,802 |  | $ | 1,677 |  | $ | 1,072 |  | $ | 1,316 |  | $ | 2,365 |  | $ | 2,925 |  | $ | 40 |  |  |  | $ | 11,197
Special mention |  | — |  | — |  | 1 |  | 1 |  | 4 |  | 5 |  | — |  |  |  | 11
Substandard |  | — |  | — |  | — |  | 1 |  | 4 |  | 10 |  | — |  |  |  | 15
Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total residential mortgage loans |  | $ | 1,802 |  | $ | 1,677 |  | $ | 1,073 |  | $ | 1,318 |  | $ | 2,373 |  | $ | 2,940 |  | $ | 40 |  |  |  | $ | 11,223
Gross charge-offs |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |  |  | $ | —
Tax-exempt loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 55 |  | $ | 49 |  | $ | — |  | $ | 57 |  | $ | 185 |  | $ | 755 |  | $ | — |  |  |  | $ | 1,101
Special mention |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Substandard |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Doubtful |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total tax-exempt loans |  | $ | 55 |  | $ | 49 |  | $ | — |  | $ | 57 |  | $ | 185 |  | $ | 755 |  | $ | — |  |  |  | $ | 1,101
Gross charge-offs |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |  |  | $ | —
(1)As of June 30, 2026, this balance was related to a loan which was collateralized by private securities.
|  | As of and for the year ended September 30, 2025
|  | Loans by origination fiscal year |  |  |  |  |  |
$ in millions |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving loans |  |  |  | Total
SBL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 21 |  | $ | 62 |  | $ | 30 |  | $ | 20 |  | $ | 29 |  | $ | 43 |  | $ | 19,485 |  |  |  | $ | 19,690
Special mention (1) |  | — |  | — |  | — |  | — |  | — |  | — |  | 85 |  |  |  | 85
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 |  | — |  | — |  | 16 |  | 1 |  | — |  | — |  | 3 |  |  |  | 20
Substandard |  | — |  | 1 |  | — |  | — |  | 2 |  | 64 |  | 20 |  |  |  | 87
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 |  | — |  | — |  | 25 |  | 90 |  | — |  | 7 |  | — |  |  |  | 122
Substandard |  | — |  | — |  | 27 |  | 86 |  | — |  | 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 |  | — |  | — |  | — |  | 1 |  | 1 |  | 3 |  | — |  |  |  | 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 was related to a loan which was collateralized by private securities. 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 LTV ratio at origination and by FICO score.
|  | June 30, 2026 |  |  |  |  |  |
|  | Loans by origination fiscal year |  |  |  |  |  |  |  |  |  |  |  |
$ in millions |  | 2026 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  | Revolving loans |  |  |  | Total |  |  |  |  |  |
FICO score: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Below 600 |  | $ | 2 |  | $ | 4 |  | $ | 10 |  | $ | 9 |  | $ | 16 |  | $ | 25 |  | $ | — |  |  |  | $ | 66 |  |  |  |  |  |
600 - 699 |  | 77 |  | 61 |  | 44 |  | 67 |  | 111 |  | 116 |  | 7 |  |  |  | 483 |  |  |  |  |  |
700 - 799 |  | 1,412 |  | 982 |  | 636 |  | 721 |  | 1,293 |  | 1,585 |  | 27 |  |  |  | 6,656 |  |  |  |  |  |
800 + |  | 310 |  | 630 |  | 381 |  | 521 |  | 953 |  | 1,211 |  | 6 |  |  |  | 4,012 |  |  |  |  |  |
FICO score not available |  | 1 |  | — |  | 2 |  | — |  | — |  | 3 |  | — |  |  |  | 6 |  |  |  |  |  |
Total |  | $ | 1,802 |  | $ | 1,677 |  | $ | 1,073 |  | $ | 1,318 |  | $ | 2,373 |  | $ | 2,940 |  | $ | 40 |  |  |  | $ | 11,223 |  |  |  |  |  |
LTV ratio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Below 80% |  | $ | 1,178 |  | $ | 1,178 |  | $ | 775 |  | $ | 930 |  | $ | 1,823 |  | $ | 2,280 |  | $ | 40 |  |  |  | $ | 8,204 |  |  |  |  |  |
80%+ |  | 624 |  | 499 |  | 298 |  | 388 |  | 550 |  | 660 |  | — |  |  |  | 3,019 |  |  |  |  |  |
Total |  | $ | 1,802 |  | $ | 1,677 |  | $ | 1,073 |  | $ | 1,318 |  | $ | 2,373 |  | $ | 2,940 |  | $ | 40 |  |  |  | $ | 11,223 |  |  |  |  |  |
|  | September 30, 2025
|  | Loans by origination fiscal year |  |  |  |  |  |
$ in millions |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving loans |  |  |  | Total
FICO score: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Below 600 |  | $ | 5 |  | $ | 5 |  | $ | 11 |  | $ | 17 |  | $ | 7 |  | $ | 18 |  | $ | — |  |  |  | $ | 63
600 - 699 |  | 74 |  | 60 |  | 66 |  | 96 |  | 43 |  | 90 |  | 5 |  |  |  | 434
700 - 799 |  | 1,424 |  | 747 |  | 815 |  | 1,419 |  | 744 |  | 1,026 |  | 29 |  |  |  | 6,204
800 + |  | 306 |  | 392 |  | 572 |  | 986 |  | 594 |  | 727 |  | 8 |  |  |  | 3,585
FICO score not available |  | 1 |  | 2 |  | 1 |  | — |  | 2 |  | 3 |  | — |  |  |  | 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%+ |  | 539 |  | 332 |  | 428 |  | 592 |  | 290 |  | 432 |  | 1 |  |  |  | 2,614
Total |  | $ | 1,810 |  | $ | 1,206 |  | $ | 1,465 |  | $ | 2,518 |  | $ | 1,390 |  | $ | 1,864 |  | $ | 42 |  |  |  | $ | 10,295
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 millions |  | SBL |  | C&I loans |  | CRE loans (1) |  | REIT loans (1) |  | Residential mortgage loans |  | Tax-exempt loans |  | Total
Three months ended June 30, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 6 |  |  | $ | 144 |  |  | $ | 206 |  |  | $ | 19 |  |  | $ | 64 |  |  | $ | 1 |  |  | $ | 440 |
Provision/(benefit) for credit losses |  | (1) |  |  | (15) |  |  | (6) |  |  | (4) |  |  | — |  |  | — |  |  | (26) |
Net (charge-offs)/recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charge-offs |  | — |  |  | (8) |  |  | (8) |  |  | — |  |  | — |  |  | — |  |  | (16) |
Recoveries |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Net charge-offs |  | — |  |  | (8) |  |  | (7) |  |  | — |  |  | — |  |  | — |  |  | (15) |
Foreign exchange translation adjustment |  | — |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Balance at end of period |  | $ | 5 |  |  | $ | 121 |  |  | $ | 192 |  |  | $ | 15 |  |  | $ | 64 |  |  | $ | 1 |  |  | $ | 398 |
Nine months ended June 30, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 8 |  |  | $ | 148 |  |  | $ | 182 |  |  | $ | 52 |  |  | $ | 61 |  |  | $ | 1 |  |  | $ | 452 |
Provision/(benefit) for credit losses |  | (3) |  |  | (18) |  |  | 32 |  |  | (37) |  |  | 2 |  |  | — |  |  | (24) |
Net (charge-offs)/recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charge-offs |  | — |  |  | (9) |  |  | (22) |  |  | — |  |  | — |  |  | — |  |  | (31) |
Recoveries |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 2 |
Net (charge-offs)/recoveries |  | — |  |  | (9) |  |  | (21) |  |  | — |  |  | 1 |  |  | — |  |  | (29) |
Foreign exchange translation adjustment |  | — |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Balance at end of period |  | $ | 5 |  |  | $ | 121 |  |  | $ | 192 |  |  | $ | 15 |  |  | $ | 64 |  |  | $ | 1 |  |  | $ | 398 |
ACL by loan portfolio segment as a % of total ACL |  | 1.3 | % |  | 30.3 | % |  | 48.2 | % |  | 3.8 | % |  | 16.1 | % |  | 0.3 | % |  | 100.0 | %
Three months ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 7 |  |  | $ | 171 |  |  | $ | 181 |  |  | $ | 32 |  |  | $ | 60 |  |  | $ | 1 |  |  | $ | 452 |
Provision/(benefit) for credit losses |  | (1) |  |  | 12 |  |  | (1) |  |  | 4 |  |  | 1 |  |  | — |  |  | 15 |
Net (charge-offs)/recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charge-offs |  | — |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |
Recoveries |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |
Net charge-offs |  | — |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3) |
Foreign exchange translation adjustment |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |
Balance at end of period |  | $ | 6 |  |  | $ | 181 |  |  | $ | 180 |  |  | $ | 36 |  |  | $ | 61 |  |  | $ | 1 |  |  | $ | 465 |
Nine months ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 6 |  |  | $ | 173 |  |  | $ | 188 |  |  | $ | 23 |  |  | $ | 65 |  |  | $ | 2 |  |  | $ | 457 |
Provision/(benefit) for credit losses |  | — |  |  | 23 |  |  | — |  |  | 13 |  |  | (4) |  |  | (1) |  |  | 31 |
Net (charge-offs)/recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Charge-offs |  | — |  |  | (17) |  |  | (8) |  |  | — |  |  | — |  |  | — |  |  | (25) |
Recoveries |  | — |  |  | 2 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Net charge-offs |  | — |  |  | (15) |  |  | (7) |  |  | — |  |  | — |  |  | — |  |  | (22) |
Foreign exchange translation adjustment |  | — |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Balance at end of period |  | $ | 6 |  |  | $ | 181 |  |  | $ | 180 |  |  | $ | 36 |  |  | $ | 61 |  |  | $ | 1 |  |  | $ | 465 |
ACL by loan portfolio segment as a % of total ACL |  | 1.3 | % |  | 39.0 | % |  | 38.7 | % |  | 7.7 | % |  | 13.1 | % |  | 0.2 | % |  | 100.0 | %
(1) During the nine months ended June 30, 2026, a certain loan and the associated allowance was reassigned from the REIT loan portfolio to the CRE loan portfolio based on changes in the loan characteristics during the period. The allowance for credit losses on held for investment bank loans decreased $42 million and $54 million during the three and nine months ended June 30, 2026, respectively, primarily due to a $26 million and $24 million bank loan benefit for credit losses, respectively, and net charge-offs of $15 million and $29 million, respectively. The bank loan benefit for credit losses for the three and nine months ended June 30, 2026 primarily reflected net paydowns in our corporate loan portfolio, improved credit quality within our loan portfolio, and, for the nine-month period, an improved macroeconomic outlook. The allowance for credit losses on unfunded lending commitments, which is included in “Other payables” on our Condensed Consolidated Statements of Financial Condition, was $22 million, $23 million, and $24 million at June 30, 2026, March 31, 2026, and September 30, 2025, respectively. 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 of our 2025 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 |  | June 30, 2026 |  | September 30, 2025
Affiliated with the firm as of period-end (1) |  | $ | 2,108 |  |  | $ | 1,658 |
No longer affiliated with the firm as of period-end (2) |  | 8 |  |  | 7 |
Total loans to financial advisors |  | 2,116 |  |  | 1,665 |
Allowance for credit losses |  | (47) |  |  | (39) |
Loans to financial advisors, net |  | $ | 2,069 |  |  | $ | 1,626 |
Accrued interest receivable on loans to financial advisors (included in “Other receivables, net”) |  | $ | 17 |  |  | $ | 12 |
Allowance for credit losses as a percent of total loans to financial advisors |  | 2.22 | % |  | 2.34 | %
(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. The increase in the allowance for credit losses as of June 30, 2026 compared with September 30, 2025 was primarily due to loan growth.

X
- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147481933/310-10-55-12A Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-42 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 44 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-44 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-20/tableOfContent + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration