v3.26.1
Financing Receivables
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Financing Receivables Financing Receivables
Financing receivables are comprised of commercial loans, consumer loans and deposit receivables.
Allowance for Credit Losses
The following tables present a rollforward of the allowance for credit losses:
 Commercial LoansConsumer LoansTotal
(in millions)
Balance at January 1, 2026
$41 $11 $52 
Provisions3 — 3 
Charge-offs(1)— (1)
Balance at March 31, 2026
$43 $11 $54 
Balance at January 1, 2025
$45 $9 $54 
Provisions(9)2 (7)
Charge-offs— (1)(1)
Balance at March 31, 2025
$36 $10 $46 
As of March 31, 2026 and December 31, 2025, accrued interest on commercial loans was $20 million and $22 million, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.
Purchases and Sales
During the three months ended March 31, 2026 and 2025, the Company purchased $3 million and $4 million, respectively, of syndicated loans, and sold $6 million and $3 million, respectively, of syndicated loans.
During the three months ended March 31, 2026 and 2025, the Company purchased $159 million and $40 million, respectively, of residential mortgage loans.
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.
Credit Quality Information
Nonperforming loans were $13 million as of both March 31, 2026 and December 31, 2025.
Commercial Loans
Commercial Mortgage Loans
The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review.
Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both March 31, 2026 and December 31, 2025. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. There were no commercial mortgage loans past due as of both March 31, 2026 and December 31, 2025.
The tables below present the amortized cost basis of commercial mortgage loans by year of origination and loan-to-value ratio:
March 31, 2026
Loan-to-Value Ratio20262025202420232022PriorTotal
(in millions)
> 100%$— $— $— $— $— $18 $18 
80% - 100%3 — 3 — — 69 75 
60% - 80%23 75 68 15 11 72 264 
40% - 60%20 133 90 44 27 380 694 
< 40%— 48 15 11 64 839 977 
Total$46 $256 $176 $70 $102 $1,378 $2,028 
December 31, 2025
Loan-to-Value Ratio20252024202320222021PriorTotal
(in millions)
> 100%$— $— $— $— $— $15 $15 
80% - 100%— — — — — 56 56 
60% - 80%83 82 18 12 — 103 298 
40% - 60%129 87 42 26 62 339 685 
< 40%45 15 11 65 108 741 985 
Total$257 $184 $71 $103 $170 $1,254 $2,039 
Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type.
In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
 LoansPercentage
March 31, 2026
December 31, 2025
March 31, 2026
December 31, 2025
(in millions)  
East North Central$192 $185 9 %9 %
East South Central55 51 3 3 
Middle Atlantic126 126 6 6 
Mountain164 168 8 8 
New England34 35 2 2 
Pacific684 696 34 34 
South Atlantic547 552 27 27 
West North Central112 110 5 5 
West South Central114 116 6 6 
Total
$2,028 $2,039 100 %100 %
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
 LoansPercentage
March 31, 2026
December 31, 2025
March 31, 2026
December 31, 2025
(in millions)  
Apartments$609 $600 30 %29 %
Hotel40 40 2 2 
Industrial402 404 20 20 
Mixed use82 83 4 4 
Office186 190 9 9 
Retail515 528 25 26 
Other194 194 10 10 
Total
$2,028 $2,039 100 %100 %
Syndicated Loans
The investment in syndicated loans as of March 31, 2026 and December 31, 2025 was $75 million and $79 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. There were no syndicated loans past due as of both March 31, 2026 and December 31, 2025. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality.
The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:
March 31, 2026
Internal Risk Rating20262025202420232022PriorTotal
(in millions)
Risk 5$— $— $— $— $— $— $— 
Risk 4— — — — — 1 1 
Risk 33 6 1 1 — 3 14 
Risk 26 13 9 3 — 3 34 
Risk 11 9 13 3 — — 26 
Total$10 $28 $23 $7 $— $7 $75 
December 31, 2025
Internal Risk Rating20252024202320222021PriorTotal
(in millions)
Risk 5$— $— $— $— $— $— $— 
Risk 4— — — — — 1 1 
Risk 37 1 1 — — — 9 
Risk 211 15 3 — 3 3 35 
Risk 114 15 5 — — — 34 
Total$32 $31 $9 $— $3 $4 $79 
Advisor Loans
The Company offers loans to financial advisors for transitional cost assistance and practice operations. Repayment of the loan is highly dependent on the retention of the financial advisor. In the event a financial advisor is no longer affiliated with the Company, the unpaid balances generally become immediately due. Accordingly, the primary risk factor for advisor loans is termination status. The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $8 million and $7 million as of March 31, 2026 and December 31, 2025, respectively.
The tables below present the amortized cost basis of advisor loans by origination year and termination status:
March 31, 2026
Termination Status20262025202420232022PriorTotal
(in millions)
Active$199 $623 $299 $267 $203 $197 $1,788 
Terminated— 2 1 — 1 10 14 
Total$199 $625 $300 $267 $204 $207 $1,802 
December 31, 2025
Termination Status20252024202320222021PriorTotal
(in millions)
Active$637 $309 $280 $215 $79 $142 $1,662 
Terminated— 1 — 1 1 8 11 
Total$637 $310 $280 $216 $80 $150 $1,673 
Consumer Loans
Residential Mortgage Loans
The Company reviews the credit worthiness of the borrower in order to determine the risk of loss on residential mortgage loans. Geographic location and FICO scores are the primary credit quality indicators included in the model that projects the Company’s risk of credit loss over the life of the residential mortgage loan portfolio. Delinquency rates are measured based on the number of days past due. Residential mortgage loans over 30 days past due were $4 million and $8 million as of March 31, 2026 and December 31, 2025, respectively.
The tables below present the amortized cost basis of residential mortgage loans by year of origination and FICO score:
FICO Score
March 31, 2026
2026
2025202420232022
Prior
Total
(in millions)
> 810
$3 $22 $4 $4 $2 $2 $37 
780 - 809
40 184 71 48 22 12 377 
740 - 779
40 147 52 58 22 12 331 
720 - 739
10 32 16 13 3 4 78 
700 - 719
7 17 7 7 5 4 47 
< 699
1 15 7 6 3 3 35 
Total$101 $417 $157 $136 $57 $37 $905 
FICO Score
December 31, 2025
2025
2024202320222021
Prior
Total
(in millions)
> 810
$23 $8 $7 $2 $2 $1 $43 
780 - 809
177 76 50 22 7 5 337 
740 - 779
128 56 62 22 7 4 279 
720 - 739
29 17 13 4 4 — 67 
700 - 719
16 8 8 5 3 1 41 
< 699
14 6 6 3 3 — 32 
Total$387 $171 $146 $58 $26 $11 $799 
The table below presents the concentrations of credit risk of residential mortgage loans by U.S. region:
Loans
Percentage
March 31, 2026
December 31, 2025
March 31, 2026
December 31, 2025
(in millions)
Minnesota
$438 $420 48 %53 %
Other U.S. States
467 379 52 47 
Total$905 $799 100 %100 %
Credit Card Receivables
The credit cards are co-branded with Ameriprise Financial, Inc. and issued to the Company’s customers by a third party. FICO scores and delinquency rates are the primary credit quality indicators for the credit card portfolio. Delinquency rates are measured based on the number of days past due. Credit card receivables over 30 days past due were 2% of total credit card receivables as of both March 31, 2026 and December 31, 2025.
The table below presents the amortized cost basis of credit card receivables by FICO score:
FICO Score
March 31, 2026
December 31, 2025
(in millions)
> 800$36 $39 
750 - 79929 31 
700 - 74927 27 
650 - 69916 16 
< 6509 9 
Total$117 $122 
Policy Loans
Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.
Margin Loans
The margin loans balance was $1.3 billion as of both March 31, 2026 and December 31, 2025. The Company monitors collateral, which had a fair value of $1.7 billion as of both March 31, 2026 and December 31, 2025, supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As of both March 31, 2026 and December 31, 2025, there was
no allowance for credit losses on margin loans. Terms of the margin arrangements allow for the Company to pledge the collateral to others, of which $470 million and $478 million had been pledged at the Options Clearing Corporation as of March 31, 2026 and December 31, 2025, respectively.
Pledged Asset Lines of Credit
The pledged asset lines of credit balance was $1.1 billion and $1.0 billion as of March 31, 2026 and December 31, 2025, respectively. The Company monitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to mitigate the risk of loss. As of both March 31, 2026 and December 31, 2025, there was no allowance for credit losses on pledged asset lines of credit.
Deposit Receivables
Deposit receivables were $5.3 billion and $5.4 billion as of March 31, 2026 and December 31, 2025, respectively. Deposit receivables are collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both March 31, 2026 and December 31, 2025.