QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Depositary Shares, each representing a 1/40th ownership interest in a | ||
Depositary Shares, each representing a 1/40th ownership interest in a | ||
Item 1. | ||||
23-24 | ||||
25-55 | ||||
Item 2. | 1-17 | |||
Item 3. | ||||
Item 4. | ||||
Item 1. | ||||
Item 1A. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Item 5. | ||||
Item 6. | ||||
• | Charles Schwab & Co., Inc. (CS&Co), a securities broker-dealer; |
• | Charles Schwab Bank (CSB), a federal savings bank; and |
• | Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds®) and for Schwab’s exchange-traded funds (Schwab ETFs™). |
• | Maximizing our market valuation and stockholder returns over time; our belief that developing trusted relationships will translate into more client assets which drives revenue and, along with expense discipline and thoughtful capital management, generates earnings growth and builds stockholder value (see Introduction in Part I, Item 2); |
• | Ongoing investments to drive efficiency and scale (see Overview); |
• | Capital returns to stockholders (see Overview); |
• | The acquisition of assets of USAA’s Investment Management Company (USAA-IMCO) and entering into a referral agreement (see Overview); |
• | 2019 capital expenditures (see Results of Operations); |
• | The phase-out of the use of LIBOR (see Risk Management); |
• | The expected impact of new accounting standards not yet adopted (see New Accounting Standards in Part I, Item 1, Financial Information – Notes to Condensed Consolidated Financial Statements (Item 1) – Note 2); |
• | The likelihood of indemnification and guarantee payment obligations (see Commitments and Contingencies in Item 1 – Note 10); and |
• | The impact of legal proceedings and regulatory matters (see Commitments and Contingencies in Item 1 – Note 10 and Legal Proceedings in Part II, Item 1). |
• | General market conditions, including the level of interest rates, equity valuations, and trading activity; |
• | Our ability to attract and retain clients, develop trusted relationships, and grow client assets; |
• | Client use of our advisory solutions and other products and services; |
• | The level of client assets, including cash balances; |
• | Competitive pressure on pricing, including deposit rates; |
• | Client sensitivity to interest rates; |
• | Regulatory guidance; |
• | Capital and liquidity needs and management; |
• | Our ability to manage expenses; |
• | Our ability to develop and launch new products, services, and capabilities, as well as implement infrastructure, in a timely and successful manner; |
• | The timing and the ability of us and USAA-IMCO to satisfy the closing conditions in the purchase agreement, including regulatory approvals and the implementation of conversion plans; |
• | The timing of campus expansion work and technology projects; |
• | Adverse developments in litigation or regulatory matters and any related charges; and |
• | Potential breaches of contractual terms for which we have indemnification and guarantee obligations. |
Three Months Ended June 30, | Percent Change | Six Months Ended June 30, | Percent Change | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Client Metrics | ||||||||||||||||||||
Net new client assets (in billions) (1) | $ | 37.2 | $ | 43.9 | (15 | )% | $ | 88.9 | $ | 25.1 | N/M | |||||||||
Core net new client assets (in billions) | $ | 37.2 | $ | 53.4 | (30 | )% | $ | 88.9 | $ | 119.0 | (25 | )% | ||||||||
Client assets (in billions, at quarter end) | $ | 3,702.4 | $ | 3,397.0 | 9 | % | ||||||||||||||
Average client assets (in billions) | $ | 3,631.1 | $ | 3,370.4 | 8 | % | $ | 3,548.4 | $ | 3,376.2 | 5 | % | ||||||||
New brokerage accounts (in thousands) | 386 | 384 | 1 | % | 772 | 827 | (7 | )% | ||||||||||||
Active brokerage accounts (in thousands, at quarter end) | 11,967 | 11,202 | 7 | % | ||||||||||||||||
Assets receiving ongoing advisory services (in billions, at quarter end) | $ | 1,938.2 | $ | 1,768.7 | 10 | % | ||||||||||||||
Client cash as a percentage of client assets (at quarter end) | 10.9 | % | 10.7 | % | ||||||||||||||||
Company Financial Metrics | ||||||||||||||||||||
Total net revenues | $ | 2,681 | $ | 2,486 | 8 | % | $ | 5,404 | $ | 4,884 | 11 | % | ||||||||
Total expenses excluding interest | 1,445 | 1,355 | 7 | % | 2,904 | 2,751 | 6 | % | ||||||||||||
Income before taxes on income | 1,236 | 1,131 | 9 | % | 2,500 | 2,133 | 17 | % | ||||||||||||
Taxes on income | 299 | 265 | 13 | % | 599 | 484 | 24 | % | ||||||||||||
Net income | 937 | 866 | 8 | % | 1,901 | 1,649 | 15 | % | ||||||||||||
Preferred stock dividends and other | 50 | 53 | (6 | )% | 89 | 90 | (1 | )% | ||||||||||||
Net income available to common stockholders | $ | 887 | $ | 813 | 9 | % | $ | 1,812 | $ | 1,559 | 16 | % | ||||||||
Earnings per common share — diluted | $ | .66 | $ | .60 | 10 | % | $ | 1.35 | $ | 1.14 | 18 | % | ||||||||
Net revenue growth from prior year | 8 | % | 17 | % | 11 | % | 16 | % | ||||||||||||
Pre-tax profit margin | 46.1 | % | 45.5 | % | 46.3 | % | 43.7 | % | ||||||||||||
Return on average common stockholders’ equity | 19 | % | 19 | % | 20 | % | 19 | % | ||||||||||||
Expenses excluding interest as a percentage of average client assets (annualized) | 0.16 | % | 0.16 | % | 0.17 | % | 0.16 | % | ||||||||||||
Consolidated Tier 1 Leverage Ratio (at quarter end) | 7.3 | % | 7.6 | % |
2019 | 2018 | |||||||||||||||
Three Months Ended June 30, | Percent Change | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | |||||||||||
Net interest revenue | ||||||||||||||||
Interest revenue | 21 | % | $ | 1,927 | 72 | % | $ | 1,590 | 64 | % | ||||||
Interest expense | 74 | % | (318 | ) | (12 | )% | (183 | ) | (7 | )% | ||||||
Net interest revenue | 14 | % | 1,609 | 60 | % | 1,407 | 57 | % | ||||||||
Asset management and administration fees | ||||||||||||||||
Mutual funds, ETFs, and collective trust funds (CTFs) (1) | (9 | )% | 428 | 16 | % | 469 | 19 | % | ||||||||
Advice solutions | 4 | % | 295 | 11 | % | 283 | 11 | % | ||||||||
Other (1) | 2 | % | 63 | 2 | % | 62 | 3 | % | ||||||||
Asset management and administration fees | (3 | )% | 786 | 29 | % | 814 | 33 | % | ||||||||
Trading revenue | ||||||||||||||||
Commissions | (1 | )% | 155 | 5 | % | 157 | 6 | % | ||||||||
Principal transactions | (17 | )% | 19 | 1 | % | 23 | 1 | % | ||||||||
Trading revenue | (3 | )% | 174 | 6 | % | 180 | 7 | % | ||||||||
Other | 32 | % | 112 | 5 | % | 85 | 3 | % | ||||||||
Total net revenues | 8 | % | $ | 2,681 | 100 | % | $ | 2,486 | 100 | % |
2019 | 2018 | |||||||||||||||
Six Months Ended June 30, | Percent Change | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | |||||||||||
Net interest revenue | ||||||||||||||||
Interest revenue | 30 | % | $ | 3,925 | 73 | % | $ | 3,011 | 62 | % | ||||||
Interest expense | 86 | % | (635 | ) | (12 | )% | (341 | ) | (7 | )% | ||||||
Net interest revenue | 23 | % | 3,290 | 61 | % | 2,670 | 55 | % | ||||||||
Asset management and administration fees | ||||||||||||||||
Mutual funds, ETFs, and collective trust funds (CTFs) (1) | (13 | )% | 842 | 16 | % | 973 | 20 | % | ||||||||
Advice solutions | 1 | % | 573 | 11 | % | 565 | 12 | % | ||||||||
Other (1) | (1 | )% | 126 | 2 | % | 127 | 2 | % | ||||||||
Asset management and administration fees | (7 | )% | 1,541 | 29 | % | 1,665 | 34 | % | ||||||||
Trading revenue | ||||||||||||||||
Commissions | (8 | )% | 318 | 6 | % | 346 | 7 | % | ||||||||
Principal transactions | 17 | % | 41 | 1 | % | 35 | 1 | % | ||||||||
Trading revenue | (6 | )% | 359 | 7 | % | 381 | 8 | % | ||||||||
Other | 27 | % | 214 | 3 | % | 168 | 3 | % | ||||||||
Total net revenues | 11 | % | $ | 5,404 | 100 | % | $ | 4,884 | 100 | % |
2019 | 2018 | ||||||||||||||||||||
Three Months Ended June 30, | Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | |||||||||||||||
Interest-earning assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 26,146 | $ | 158 | 2.39 | % | $ | 12,764 | $ | 57 | 1.80 | % | |||||||||
Cash and investments segregated | 14,588 | 89 | 2.41 | % | 11,825 | 50 | 1.68 | % | |||||||||||||
Broker-related receivables (1) | 199 | — | 1.38 | % | 378 | 2 | 1.58 | % | |||||||||||||
Receivables from brokerage clients | 19,423 | 217 | 4.42 | % | 19,775 | 204 | 4.09 | % | |||||||||||||
Available for sale securities (2) | 56,020 | 386 | 2.74 | % | 52,682 | 291 | 2.19 | % | |||||||||||||
Held to maturity securities | 132,738 | 899 | 2.70 | % | 129,825 | 812 | 2.49 | % | |||||||||||||
Bank loans | 16,560 | 148 | 3.58 | % | 16,530 | 138 | 3.32 | % | |||||||||||||
Total interest-earning assets | 265,674 | 1,897 | 2.84 | % | 243,779 | 1,554 | 2.54 | % | |||||||||||||
Other interest revenue | 30 | 36 | |||||||||||||||||||
Total interest-earning assets | $ | 265,674 | $ | 1,927 | 2.88 | % | $ | 243,779 | $ | 1,590 | 2.60 | % | |||||||||
Funding sources | |||||||||||||||||||||
Bank deposits | $ | 210,811 | $ | 224 | 0.43 | % | $ | 193,029 | $ | 117 | 0.24 | % | |||||||||
Payables to brokerage clients | 23,034 | 24 | 0.42 | % | 21,729 | 14 | 0.26 | % | |||||||||||||
Short-term borrowings (1) | 3 | — | 2.68 | % | 1,429 | 7 | 1.94 | % | |||||||||||||
Long-term debt | 7,090 | 63 | 3.58 | % | 4,961 | 43 | 3.47 | % | |||||||||||||
Total interest-bearing liabilities | 240,938 | 311 | 0.52 | % | 221,148 | 181 | 0.33 | % | |||||||||||||
Non-interest-bearing funding sources | 24,736 | 22,631 | |||||||||||||||||||
Other interest expense | 7 | 2 | |||||||||||||||||||
Total funding sources | $ | 265,674 | $ | 318 | 0.48 | % | $ | 243,779 | $ | 183 | 0.30 | % | |||||||||
Net interest revenue | $ | 1,609 | 2.40 | % | $ | 1,407 | 2.30 | % |
2019 | 2018 | ||||||||||||||||||||
Six Months Ended June 30, | Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | |||||||||||||||
Interest-earning assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 25,568 | $ | 309 | 2.41 | % | $ | 14,912 | $ | 123 | 1.65 | % | |||||||||
Cash and investments segregated | 14,075 | 172 | 2.43 | % | 12,891 | 98 | 1.51 | % | |||||||||||||
Broker-related receivables | 228 | 2 | 2.15 | % | 333 | 3 | 1.47 | % | |||||||||||||
Receivables from brokerage clients | 19,199 | 431 | 4.46 | % | 19,326 | 383 | 3.95 | % | |||||||||||||
Available for sale securities (2) | 61,407 | 837 | 2.72 | % | 51,533 | 531 | 2.06 | % | |||||||||||||
Held to maturity securities | 132,583 | 1,815 | 2.73 | % | 125,641 | 1,533 | 2.44 | % | |||||||||||||
Bank loans | 16,569 | 297 | 3.59 | % | 16,493 | 268 | 3.25 | % | |||||||||||||
Total interest-earning assets | 269,629 | 3,863 | 2.86 | % | 241,129 | 2,939 | 2.43 | % | |||||||||||||
Other interest revenue | 62 | 72 | |||||||||||||||||||
Total interest-earning assets | $ | 269,629 | $ | 3,925 | 2.90 | % | $ | 241,129 | $ | 3,011 | 2.49 | % | |||||||||
Funding sources | |||||||||||||||||||||
Bank deposits | $ | 215,374 | $ | 450 | 0.42 | % | $ | 185,052 | $ | 181 | 0.20 | % | |||||||||
Payables to brokerage clients | 22,611 | 47 | 0.42 | % | 22,097 | 21 | 0.20 | % | |||||||||||||
Short-term borrowings (1) | 17 | — | 2.50 | % | 6,770 | 54 | 1.59 | % | |||||||||||||
Long-term debt | 6,968 | 125 | 3.60 | % | 4,678 | 80 | 3.42 | % | |||||||||||||
Total interest-bearing liabilities | 244,970 | 622 | 0.51 | % | 218,597 | 336 | 0.31 | % | |||||||||||||
Non-interest-bearing funding sources | 24,659 | 22,532 | |||||||||||||||||||
Other interest expense | 13 | 5 | |||||||||||||||||||
Total funding sources | $ | 269,629 | $ | 635 | 0.47 | % | $ | 241,129 | $ | 341 | 0.28 | % | |||||||||
Net interest revenue | $ | 3,290 | 2.43 | % | $ | 2,670 | 2.21 | % |
Three Months Ended June 30, | 2019 | 2018 | |||||||||||||||||||
Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | ||||||||||||||||
Schwab money market funds | $ | 161,998 | $ | 123 | 0.30 | % | $ | 139,968 | $ | 147 | 0.42 | % | |||||||||
Schwab equity and bond funds, ETFs, and CTFs (1) | 261,773 | 74 | 0.11 | % | 218,877 | 76 | 0.14 | % | |||||||||||||
Mutual Fund OneSource® and other non-transaction fee funds | 192,227 | 152 | 0.32 | % | 217,867 | 175 | 0.32 | % | |||||||||||||
Other third-party mutual funds and ETFs (2) | 471,638 | 79 | 0.07 | % | 325,061 | 71 | 0.09 | % | |||||||||||||
Total mutual funds, ETFs and CTFs (1,3) | $ | 1,087,636 | 428 | 0.16 | % | $ | 901,773 | 469 | 0.21 | % | |||||||||||
Advice solutions (3) | |||||||||||||||||||||
Fee-based | $ | 243,050 | 295 | 0.49 | % | $ | 225,879 | 283 | 0.50 | % | |||||||||||
Non-fee-based | 69,274 | — | — | 62,109 | — | — | |||||||||||||||
Total advice solutions | $ | 312,324 | 295 | 0.38 | % | $ | 287,988 | 283 | 0.39 | % | |||||||||||
Other balance-based fees (1,4) | 408,929 | 54 | 0.05 | % | 372,029 | 51 | 0.05 | % | |||||||||||||
Other (5) | 9 | 11 | |||||||||||||||||||
Total asset management and administration fees | $ | 786 | $ | 814 |
2019 | 2018 | ||||||||||||||||||||
Six Months Ended June 30, | Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | |||||||||||||||
Schwab money market funds | $ | 160,133 | $ | 245 | 0.31 | % | $ | 148,165 | $ | 329 | 0.45 | % | |||||||||
Schwab equity and bond funds, ETFs, and CTFs (1) | 253,048 | 144 | 0.11 | % | 215,153 | 150 | 0.14 | % | |||||||||||||
Mutual Fund OneSource® and other non-transaction fee funds | 189,725 | 299 | 0.32 | % | 220,268 | 353 | 0.32 | % | |||||||||||||
Other third-party mutual funds and ETFs (2) | 462,050 | 154 | 0.07 | % | 322,391 | 141 | 0.09 | % | |||||||||||||
Total mutual funds, ETFs and CTFs (1,3) | $ | 1,064,956 | 842 | 0.16 | % | $ | 905,977 | 973 | 0.22 | % | |||||||||||
Advice solutions (3) | |||||||||||||||||||||
Fee-based | $ | 236,722 | 573 | 0.49 | % | $ | 225,320 | 565 | 0.51 | % | |||||||||||
Non-fee-based | 68,015 | — | — | 60,964 | — | — | |||||||||||||||
Total advice solutions | $ | 304,737 | 573 | 0.38 | % | $ | 286,284 | 565 | 0.40 | % | |||||||||||
Other balance-based fees (1,4) | 400,560 | 106 | 0.05 | % | 391,236 | 106 | 0.05 | % | |||||||||||||
Other (5) | 20 | 21 | |||||||||||||||||||
Total asset management and administration fees | $ | 1,541 | $ | 1,665 |
Schwab Money Market Funds | Schwab Equity and Bond Funds, ETFs, and CTFs (1) | Mutual Fund OneSource® and Other NTF funds | |||||||||||||||||||||
Three Months Ended June 30, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Balance at beginning of period | $ | 159,669 | $ | 144,995 | $ | 240,887 | $ | 203,191 | $ | 195,116 | $ | 221,614 | |||||||||||
Net inflows (outflows) | 7,539 | (11,319 | ) | 6,133 | 9,671 | (4,937 | ) | (13,348 | ) | ||||||||||||||
Net market gains (losses) and other | 856 | 490 | 7,440 | 4,021 | 7,598 | 4,247 | |||||||||||||||||
Balance at end of period | $ | 168,064 | $ | 134,166 | $ | 254,460 | $ | 216,883 | $ | 197,777 | $ | 212,513 |
Schwab Money Market Funds | Schwab Equity and Bond Funds, ETFs, and CTFs (1) | Mutual Fund OneSource® and Other NTF funds | |||||||||||||||||||||
Six Months Ended June 30, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Balance at beginning of period | $ | 153,472 | $ | 163,650 | $ | 209,471 | $ | 196,784 | $ | 180,532 | $ | 225,202 | |||||||||||
Net inflows (outflows) | 12,691 | (30,441 | ) | 13,381 | 18,456 | (11,143 | ) | (18,277 | ) | ||||||||||||||
Net market gains (losses) and other | 1,901 | 957 | 31,608 | 1,643 | 28,388 | 5,588 | |||||||||||||||||
Balance at end of period | $ | 168,064 | $ | 134,166 | $ | 254,460 | $ | 216,883 | $ | 197,777 | $ | 212,513 |
Three Months Ended June 30, | Percent Change | Six Months Ended June 30, | Percent Change | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Daily average revenue trades (DARTs) (in thousands) | 392 | 376 | 4 | % | 405 | 418 | (3 | )% | |||||||||||||
Clients’ daily average trades (in thousands) | 716 | 704 | 2 | % | 746 | 757 | (1 | )% | |||||||||||||
Number of trading days | 63.0 | 64.0 | (2 | )% | 124.0 | 125.0 | (1 | )% | |||||||||||||
Daily average revenue per revenue trade | $ | 6.94 | $ | 7.30 | (5 | )% | $ | 7.07 | $ | 7.27 | (3 | )% | |||||||||
Trading revenue | $ | 174 | $ | 180 | (3 | )% | $ | 359 | $ | 381 | (6 | )% |
Three Months Ended June 30, | Percent Change | Six Months Ended June 30, | Percent Change | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Compensation and benefits | |||||||||||||||||||||
Salaries and wages | $ | 476 | $ | 419 | 14 | % | $ | 952 | $ | 830 | 15 | % | |||||||||
Incentive compensation | 198 | 210 | (6 | )% | 414 | 422 | (2 | )% | |||||||||||||
Employee benefits and other | 133 | 116 | 15 | % | 291 | 263 | 11 | % | |||||||||||||
Total compensation and benefits | $ | 807 | $ | 745 | 8 | % | $ | 1,657 | $ | 1,515 | 9 | % | |||||||||
Professional services | 178 | 156 | 14 | % | 348 | 312 | 12 | % | |||||||||||||
Occupancy and equipment | 133 | 122 | 9 | % | 264 | 244 | 8 | % | |||||||||||||
Advertising and market development | 77 | 77 | — | 146 | 150 | (3 | )% | ||||||||||||||
Communications | 62 | 58 | 7 | % | 124 | 120 | 3 | % | |||||||||||||
Depreciation and amortization | 84 | 75 | 12 | % | 167 | 148 | 13 | % | |||||||||||||
Regulatory fees and assessments | 30 | 50 | (40 | )% | 62 | 101 | (39 | )% | |||||||||||||
Other | 74 | 72 | 3 | % | 136 | 161 | (16 | )% | |||||||||||||
Total expenses excluding interest | $ | 1,445 | $ | 1,355 | 7 | % | $ | 2,904 | $ | 2,751 | 6 | % | |||||||||
Expenses as a percentage of total net revenues | |||||||||||||||||||||
Compensation and benefits | 30 | % | 30 | % | 31 | % | 31 | % | |||||||||||||
Advertising and market development | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||||||
Full-time equivalent employees (in thousands) | |||||||||||||||||||||
At quarter end | 20.5 | 18.7 | 10 | % | |||||||||||||||||
Average | 20.2 | 18.4 | 10 | % | 20.0 | 18.2 | 10 | % |
Investor Services | Advisor Services | Total | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | Percent Change | 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | 2019 | 2018 | |||||||||||||||||||||||
Net Revenues | ||||||||||||||||||||||||||||||||
Net interest revenue | 9 | % | $ | 1,154 | $ | 1,063 | 32 | % | $ | 455 | $ | 344 | 14 | % | $ | 1,609 | $ | 1,407 | ||||||||||||||
Asset management and administration fees | (2 | )% | 560 | 569 | (8 | )% | 226 | 245 | (3 | )% | 786 | 814 | ||||||||||||||||||||
Trading revenue | (4 | )% | 110 | 115 | (2 | )% | 64 | 65 | (3 | )% | 174 | 180 | ||||||||||||||||||||
Other | 3 | % | 67 | 65 | 125 | % | 45 | 20 | 32 | % | 112 | 85 | ||||||||||||||||||||
Total net revenues | 4 | % | 1,891 | 1,812 | 17 | % | 790 | 674 | 8 | % | 2,681 | 2,486 | ||||||||||||||||||||
Expenses Excluding Interest | 4 | % | 1,057 | 1,012 | 13 | % | 388 | 343 | 7 | % | 1,445 | 1,355 | ||||||||||||||||||||
Income before taxes on income | 4 | % | $ | 834 | $ | 800 | 21 | % | $ | 402 | $ | 331 | 9 | % | $ | 1,236 | $ | 1,131 |
Investor Services | Advisor Services | Total | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | Percent Change | 2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | 2019 | 2018 | |||||||||||||||||||||||
Net Revenues | ||||||||||||||||||||||||||||||||
Net interest revenue | 16 | % | $ | 2,349 | $ | 2,020 | 45 | % | $ | 941 | $ | 650 | 23 | % | $ | 3,290 | $ | 2,670 | ||||||||||||||
Asset management and administration fees | (6 | )% | 1,093 | 1,162 | (11 | )% | 448 | 503 | (7 | )% | 1,541 | 1,665 | ||||||||||||||||||||
Trading revenue | (9 | )% | 221 | 242 | (1 | )% | 138 | 139 | (6 | )% | 359 | 381 | ||||||||||||||||||||
Other | 8 | % | 139 | 129 | 92 | % | 75 | 39 | 27 | % | 214 | 168 | ||||||||||||||||||||
Total net revenues | 7 | % | 3,802 | 3,553 | 20 | % | 1,602 | 1,331 | 11 | % | 5,404 | 4,884 | ||||||||||||||||||||
Expenses Excluding Interest | 3 | % | 2,119 | 2,054 | 13 | % | 785 | 697 | 6 | % | 2,904 | 2,751 | ||||||||||||||||||||
Income before taxes on income | 12 | % | $ | 1,683 | $ | 1,499 | 29 | % | $ | 817 | $ | 634 | 17 | % | $ | 2,500 | $ | 2,133 |
June 30, 2019 | December 31, 2018 | |||||
Increase of 100 basis points | 4.7 | % | 4.4 | % | ||
Decrease of 100 basis points | (4.1 | )% | (4.9 | )% |
Description | Borrower | Outstanding | Available | ||||||
Federal Home Loan Bank secured credit facility (1) | Banking subsidiaries | $ | — | $ | 35,223 | ||||
Uncommitted, unsecured lines of credit with various external banks | CSC, CS&Co | — | 1,432 | ||||||
Unsecured commercial paper (2) | CSC | — | 750 | ||||||
Committed, unsecured credit facility with various external banks | CSC | — | 750 | ||||||
Federal Reserve Bank discount window (3) | Banking subsidiaries | — | 8,416 |
Average for the Three Months Ended June 30, 2019 | |||
Total eligible high quality liquid assets | $ | 53,897 | |
Net cash outflows | $ | 48,673 | |
LCR | 111 | % |
June 30, 2019 | Par Outstanding | Maturity | Weighted Average Interest Rate | Moody’s | Standard & Poor’s | Fitch | ||||
Senior Notes | $ | 7,481 | 2020 - 2029 | 3.39% | A2 | A | A |
Issuance Date | Issuance Amount | Maturity Date | Interest Rate | |||
May 22, 2019 | $ | 600 | 5/22/2029 | 3.250 | % |
June 30, 2019 (1) | December 31, 2018 | ||||||||||||||
CSC | CSB | CSC | CSB | ||||||||||||
Total stockholders’ equity | $ | 21,320 | $ | 15,870 | $ | 20,670 | $ | 15,615 | |||||||
Less: | |||||||||||||||
Preferred stock | 2,793 | — | 2,793 | — | |||||||||||
Common Equity Tier 1 Capital before regulatory adjustments | $ | 18,527 | $ | 15,870 | $ | 17,877 | $ | 15,615 | |||||||
Less: | |||||||||||||||
Goodwill, net of associated deferred tax liabilities | $ | 1,188 | $ | 13 | $ | 1,188 | $ | 13 | |||||||
Other intangible assets, net of associated deferred tax liabilities | 113 | — | 125 | — | |||||||||||
Deferred tax assets, net of valuation allowances and deferred tax liabilities | 3 | 1 | 3 | 1 | |||||||||||
AOCI adjustment (1) | — | — | (252 | ) | (231 | ) | |||||||||
Common Equity Tier 1 Capital | $ | 17,223 | $ | 15,856 | $ | 16,813 | $ | 15,832 | |||||||
Tier 1 Capital | $ | 20,016 | $ | 15,856 | $ | 19,606 | $ | 15,832 | |||||||
Total Capital | 20,035 | 15,874 | 19,628 | 15,853 | |||||||||||
Risk-Weighted Assets | 83,881 | 69,998 | 95,441 | 80,513 | |||||||||||
Total Leverage Exposure (1) | 280,655 | 220,642 | N/A | N/A | |||||||||||
Common Equity Tier 1 Capital/Risk-Weighted Assets | 20.5 | % | 22.7 | % | 17.6 | % | 19.7 | % | |||||||
Tier 1 Capital/Risk-Weighted Assets | 23.9 | % | 22.7 | % | 20.5 | % | 19.7 | % | |||||||
Total Capital/Risk-Weighted Assets | 23.9 | % | 22.7 | % | 20.6 | % | 19.7 | % | |||||||
Tier 1 Leverage Ratio | 7.3 | % | 7.4 | % | 7.1 | % | 7.2 | % | |||||||
Supplementary Leverage Ratio (1) | 7.1 | % | 7.2 | % | N/A | N/A |
2019 | 2018 | |||||||||||||||
Six Months Ended June 30, | Cash Paid | Per Share Amount | Cash Paid | Per Share Amount | ||||||||||||
Common Stock | $ | 456 | $ | .34 | $ | 271 | $ | .20 | ||||||||
Series A Preferred Stock (1) | 14 | 35.00 | 14 | 35.00 | ||||||||||||
Series C Preferred Stock (2) | 18 | 30.00 | 18 | 30.00 | ||||||||||||
Series D Preferred Stock (2) | 22 | 29.76 | 22 | 29.76 | ||||||||||||
Series E Preferred Stock (3) | 14 | 2,312.50 | 14 | 2,312.50 | ||||||||||||
Series F Preferred Stock (4) | 13 | 2,500.00 | 15 | 2,930.56 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Revenues | |||||||||||||||
Interest revenue | $ | $ | $ | $ | |||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net interest revenue | |||||||||||||||
Asset management and administration fees | |||||||||||||||
Trading revenue | |||||||||||||||
Other | |||||||||||||||
Total net revenues | |||||||||||||||
Expenses Excluding Interest | |||||||||||||||
Compensation and benefits | |||||||||||||||
Professional services | |||||||||||||||
Occupancy and equipment | |||||||||||||||
Advertising and market development | |||||||||||||||
Communications | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Regulatory fees and assessments | |||||||||||||||
Other | |||||||||||||||
Total expenses excluding interest | |||||||||||||||
Income before taxes on income | |||||||||||||||
Taxes on income | |||||||||||||||
Net Income | |||||||||||||||
Preferred stock dividends and other (1) | |||||||||||||||
Net Income Available to Common Stockholders | $ | $ | $ | $ | |||||||||||
Weighted-Average Common Shares Outstanding: | |||||||||||||||
Basic | |||||||||||||||
Diluted (2) | |||||||||||||||
Earnings Per Common Shares Outstanding: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted (2) | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive income (loss), before tax: | |||||||||||||||
Change in net unrealized gain (loss) on available for sale securities: | |||||||||||||||
Net unrealized gain (loss) | ( | ) | ( | ) | |||||||||||
Other reclassifications included in other revenue | ( | ) | ( | ) | |||||||||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | |||||||||||||||
Other comprehensive income (loss), before tax | ( | ) | ( | ) | |||||||||||
Income tax effect | ( | ) | ( | ) | |||||||||||
Other comprehensive income (loss), net of tax | ( | ) | ( | ) | |||||||||||
Comprehensive Income | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $8,134 at June 30, 2019 and $7,195 at December 31, 2018) | |||||||
Receivables from brokers, dealers, and clearing organizations | |||||||
Receivables from brokerage clients — net | |||||||
Other securities owned — at fair value | |||||||
Available for sale securities | |||||||
Held to maturity securities | |||||||
Bank loans — net | |||||||
Equipment, office facilities, and property — net | |||||||
Goodwill | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Stockholders’ Equity | |||||||
Bank deposits | $ | $ | |||||
Payables to brokers, dealers, and clearing organizations | |||||||
Payables to brokerage clients | |||||||
Accrued expenses and other liabilities | |||||||
Long-term debt | |||||||
Total liabilities | |||||||
Stockholders’ equity: | |||||||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $2,850 | |||||||
Common stock — 3 billion shares authorized; $.01 par value per share; 1,487,543,446 shares issued | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Treasury stock, at cost — 179,039,218 shares at June 30, 2019 and 155,116,695 shares at December 31, 2018 | ( | ) | ( | ) | |||
Accumulated other comprehensive income (loss) | ( | ) | |||||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
Preferred Stock | Common stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at cost | Total | |||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Dividends declared on common stock — $.10 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Stock option exercises and other | — | — | — | — | — | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Dividends declared on common stock — $.17 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||
Stock option exercises and other | — | — | — | — | — | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | ||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | $ |
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
Preferred Stock | Common stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at cost | Total | |||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||
Adoption of accounting standards | — | — | — | — | — | ( | ) | |||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Dividends declared on common stock — $.20 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Stock option exercises and other | — | — | — | ( | ) | — | — | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Dividends declared on common stock — $.34 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||
Stock option exercises and other | — | — | — | ( | ) | — | — | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | ( | ) | — | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | $ |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||
Share-based compensation | |||||||
Depreciation and amortization | |||||||
Premium amortization, net, on available for sale and held to maturity securities | |||||||
Other | |||||||
Net change in: | |||||||
Investments segregated and on deposit for regulatory purposes | ( | ) | |||||
Receivables from brokers, dealers, and clearing organizations | ( | ) | |||||
Receivables from brokerage clients | ( | ) | |||||
Other securities owned | |||||||
Other assets | ( | ) | ( | ) | |||
Payables to brokers, dealers, and clearing organizations | ( | ) | ( | ) | |||
Payables to brokerage clients | ( | ) | ( | ) | |||
Accrued expenses and other liabilities | ( | ) | ( | ) | |||
Net cash provided by (used for) operating activities | ( | ) | |||||
Cash Flows from Investing Activities | |||||||
Purchases of available for sale securities | ( | ) | ( | ) | |||
Proceeds from sales of available for sale securities | |||||||
Principal payments on available for sale securities | |||||||
Purchases of held to maturity securities | ( | ) | ( | ) | |||
Principal payments on held to maturity securities | |||||||
Net change in bank loans | ( | ) | ( | ) | |||
Purchases of equipment, office facilities, and property | ( | ) | ( | ) | |||
Purchases of Federal Home Loan Bank stock | ( | ) | ( | ) | |||
Proceeds from sales of Federal Home Loan Bank stock | |||||||
Other investing activities | ( | ) | |||||
Net cash provided by (used for) investing activities | ( | ) | |||||
Cash Flows from Financing Activities | |||||||
Net change in bank deposits (1) | ( | ) | |||||
Net change in short-term borrowings | ( | ) | |||||
Issuance of long-term debt | |||||||
Repayment of long-term debt | ( | ) | |||||
Dividends paid | ( | ) | ( | ) | |||
Proceeds from stock options exercised | |||||||
Repurchases of common stock | ( | ) | |||||
Other financing activities | ( | ) | ( | ) | |||
Net cash provided by (used for) financing activities | ( | ) | |||||
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted | ( | ) | ( | ) | |||
Cash and Cash Equivalents, including Amounts Restricted at Beginning of Year | |||||||
Cash and Cash Equivalents, including Amounts Restricted at End of Period | $ | $ |
Six Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
Supplemental Cash Flow Information | ||||||||
Non-cash investing activity: | ||||||||
Securities purchased during the period but settled after period end | $ | $ | ||||||
Non-cash financing activity: | ||||||||
Extinguishment of finance lease obligation through an assignment agreement | $ | $ | ||||||
Common stock repurchased during the period but settled after period end | $ | $ | ||||||
Other Supplemental Cash Flow Information | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | $ | ||||||
Income taxes | $ | $ | ||||||
Amounts included in the measurement of lease liabilities (2) | $ | N/A | ||||||
Leased assets obtained in exchange for new operating lease liabilities (2) | $ | N/A | ||||||
June 30, 2019 | June 30, 2018 | |||||||
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet (3) | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted cash and cash equivalents amounts included in cash and investments segregated and on deposit for regulatory purposes | ||||||||
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows | $ | $ |
• | Charles Schwab & Co., Inc. (CS&Co), a securities broker-dealer; |
• | Charles Schwab Bank (CSB), a federal savings bank; and |
• | Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds®) and for Schwab’s exchange-traded funds (Schwab ETFs™). |
Standard | Description | Date of Adoption | Effects on the Financial Statements or Other Significant Matters |
Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842)” | Amends the accounting for leases by lessees and lessors. The primary change from the new guidance is the recognition of right-of-use (ROU) assets and lease liabilities by lessees for those leases classified as operating leases. Additional changes include accounting for lease origination and executory costs, required lessee reassessments during the lease term due to changes in circumstances, and expanded lease disclosures. Adoption provides for modified retrospective transition as of the beginning of the earliest comparative period presented in the financial statements in which the entity first applies the new standard or, optionally, through another transition method by which a cumulative-effect adjustment is recorded to retained earnings as of the beginning of the period of adoption. Certain transition relief is permitted if elected by the entity. | January 1, 2019 | The Company adopted the new lease accounting guidance as of January 1, 2019 under the optional transition method provided electing not to recast its comparative periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The adoption resulted in a gross up of the consolidated balance sheet due to recognition of ROU assets and lease liabilities primarily related to the CS&Co leases of office space and branches. The amounts were based on the present value of our remaining operating lease payments. The Company’s ROU assets and related lease liabilities upon adoption were $596 million and $662 million, respectively. Further details on the impact of adoption are included below in this Note as well as in Note 9. |
ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” | Shortens the amortization period for the premium on certain callable debt securities to the earliest call date. The amendments are applicable to any purchased individual debt security with an explicit and noncontingent call feature with a fixed price on a preset date. ASU 2017-08 does not impact the accounting for callable debt securities held at a discount. Adoption requires modified retrospective transition as of the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. | January 1, 2019 | The Company adopted this guidance as of January 1, 2019 using the modified retrospective method. Adoption resulted in an immaterial cumulative-effect adjustment to retained earnings as of the date of adoption. |
ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (ASU 2017-12) | This ASU amends hedge accounting guidance to better align hedge accounting with risk management activities, while reducing the complexity of applying and reporting on hedge accounting. In addition, for a closed pool of prepayable financial assets, entities will be able to hedge an amount that is not expected to be affected by prepayments, defaults and other events under the “last-of-layer” method. The guidance also permits a one-time reclassification of debt securities eligible to be hedged under the “last-of-layer” method from held to maturity (HTM) to available for sale (AFS) upon adoption. | January 1, 2019 | The Company adopted this ASU on January 1, 2019. As part of its adoption, the Company made a one-time election to reclassify a portion of its HTM securities eligible to be hedged under the “last-of-layer” method to AFS. As of January 1, 2019, the securities reclassified had a fair value of $8.8 billion and resulted in a net of tax increase to AOCI of $19 million. The adoption of this standard had no other impact on the Company’s financial statements. |
Standard | Description | Required Date of Adoption | Effects on the Financial Statements or Other Significant Matters |
ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” | Provides guidance for recognizing impairment of most debt instruments measured at amortized cost, including loans and HTM debt securities. Requires estimating current expected credit losses (CECL) over the remaining life of an instrument or a portfolio of instruments with similar risk characteristics based on relevant information about past events, current conditions, and reasonable forecasts. The initial estimate of, and the subsequent changes in, CECL will be recognized as credit loss expense through current earnings and will be reflected as an allowance for credit losses offsetting the carrying value of the financial instrument(s) on the balance sheet. Amends the OTTI model for AFS debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. Adoption requires a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the entity applies the new guidance except that a prospective transition is required for AFS debt securities for which an OTTI has been recognized prior to the effective date. | January 1, 2020 (early adoption permitted) | The Company continues to evaluate the impact of this guidance on its financial statements. The Company expects that its allowance for credit losses will increase when CECL is adopted, primarily due to an incremental allowance that will be recorded on its HTM corporate debt securities. The incremental allowance at adoption is expected to be immaterial, but the extent of the impact of adoption will depend on, among other things, the economic environment and the size and type of loan and securities portfolios held by the Company on the date of adoption. A large portion of the securities in the Company’s portfolio will have zero expectation of credit losses based on industry views and regulatory guidance for U.S. Treasury and certain government agency-backed securities. Further, we expect to apply the practical expedient based on continuous collateral replenishment to the Company’s pledged asset lines (PALs) and margin loans. The Company has substantially developed its credit loss estimation methods for the securities in its portfolio that do not have zero expectation of credit losses, including corporate debt securities and structured products. Our focus during the remainder of 2019 is on continuing the development of policies and processes that will be required to implement CECL, testing and validation of credit loss estimation methods, and performance of CECL parallel runs. |
Standard | Description | Required Date of Adoption | Effects on the Financial Statements or Other Significant Matters |
ASU 2018-15, “Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” | Aligns the criteria for capitalizing implementation costs for cloud computing arrangements (CCA) that are service contracts with internal-use software that is developed or purchased and CCAs that include an internal-use software license. This guidance requires that the capitalized implementation costs be recognized over the period of the CCA service contract, subject to impairment evaluation on an ongoing basis. The guidance prescribes the balance sheet, income statement, and statement of cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. Adoption provides for retrospective or prospective application to all implementation costs incurred after the date of adoption. | January 1, 2020 (early adoption permitted) | Historically, Schwab has expensed implementation costs as they are incurred for CCAs that are service contracts. Therefore, adopting this guidance will change the Company’s accounting treatment for these types of implementation costs. The Company plans to adopt this guidance on a prospective basis and continues to evaluate the impacts of this guidance on its financial statements, including EPS. |
Balance at December 31, 2018 | Adjustments Due to ASU 2016-02 | Balance at January 1, 2019 | ||||||||||
Assets | ||||||||||||
Other assets (1) | $ | $ | $ | |||||||||
Liabilities | ||||||||||||
Accrued expenses and other liabilities (2) | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Net interest revenue | ||||||||||||||
Interest revenue | $ | $ | $ | $ | ||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||
Net interest revenue | ||||||||||||||
Asset management and administration fees | ||||||||||||||
Mutual funds, ETFs, and CTFs (1) | ||||||||||||||
Advice solutions | ||||||||||||||
Other (1) | ||||||||||||||
Asset management and administration fees | ||||||||||||||
Trading revenue | ||||||||||||||
Commissions | ||||||||||||||
Principal transactions | ||||||||||||||
Trading revenue | ||||||||||||||
Other | ||||||||||||||
Total net revenues | $ | $ | $ | $ |
June 30, 2019 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Available for sale securities | ||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | ||||||||||||
U.S. Treasury securities | ||||||||||||||||
Asset-backed securities (1) | ||||||||||||||||
Corporate debt securities (2) | ||||||||||||||||
Certificates of deposit | ||||||||||||||||
U.S. agency notes | ||||||||||||||||
Commercial paper (2,3) | ||||||||||||||||
Non-agency commercial mortgage-backed securities | ||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | ||||||||||||
Held to maturity securities | ||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | ||||||||||||
Asset-backed securities (1) | ||||||||||||||||
Corporate debt securities (2) | ||||||||||||||||
U.S. state and municipal securities | ||||||||||||||||
Non-agency commercial mortgage-backed securities | ||||||||||||||||
U.S. Treasury securities | ||||||||||||||||
Certificates of deposit | ||||||||||||||||
Foreign government agency securities | ||||||||||||||||
Other | ||||||||||||||||
Total held to maturity securities | $ | $ | $ | $ |
December 31, 2018 | ||||||||||||||||
Available for sale securities | ||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | ||||||||||||
U.S. Treasury securities | ||||||||||||||||
Asset-backed securities (1) | ||||||||||||||||
Corporate debt securities (2) | ||||||||||||||||
Certificates of deposit | ||||||||||||||||
U.S. agency notes | ||||||||||||||||
Commercial paper (2,3) | ||||||||||||||||
Foreign government agency securities | ||||||||||||||||
Non-agency commercial mortgage-backed securities | ||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | ||||||||||||
Held to maturity securities | ||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | ||||||||||||
Asset-backed securities (1) | ||||||||||||||||
Corporate debt securities (2) | ||||||||||||||||
U.S. state and municipal securities | ||||||||||||||||
Non-agency commercial mortgage-backed securities | ||||||||||||||||
U.S. Treasury securities | ||||||||||||||||
Certificates of deposit | ||||||||||||||||
Foreign government agency securities | ||||||||||||||||
Other | ||||||||||||||||
Total held to maturity securities | $ | $ | $ | $ |
| Less than | 12 months | |||||||||||||||||||||
| 12 months | or longer | Total | ||||||||||||||||||||
June 30, 2019 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Available for sale securities | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Held to maturity securities | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Total securities with unrealized losses (1) | $ | $ | $ | $ | $ | $ |
December 31, 2018 | |||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
U.S. agency notes | |||||||||||||||||||||||
Foreign government agency securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Held to maturity securities | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
U.S. state and municipal securities | |||||||||||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
Foreign government agency securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Total securities with unrealized losses (2) | $ | $ | $ | $ | $ | $ |
June 30, 2019 | Within 1 year | After 1 year through 5 years | After 5 years through 10 years | After 10 years | Total | ||||||||||||||
Available for sale securities | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | $ | ||||||||||||||
U.S. Treasury securities | |||||||||||||||||||
Asset-backed securities | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||
Certificates of deposit | |||||||||||||||||||
U.S. agency notes | |||||||||||||||||||
Commercial paper | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||||||
Total fair value | $ | $ | $ | $ | $ | ||||||||||||||
Total amortized cost | $ | $ | $ | $ | $ | ||||||||||||||
Held to maturity securities | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | $ | $ | $ | $ | ||||||||||||||
Asset-backed securities | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||
U.S. state and municipal securities | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||
Certificates of deposit | |||||||||||||||||||
Foreign government agency securities | |||||||||||||||||||
Other | |||||||||||||||||||
Total fair value | $ | $ | $ | $ | $ | ||||||||||||||
Total amortized cost | $ | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Proceeds | $ | $ | $ | $ | |||||||||||
Gross realized gains | |||||||||||||||
Gross realized losses |
June 30, 2019 | Current | 30-59 days past due | 60-89 days past due | >90 days past due and other nonaccrual loans (3) | Total past due and other nonaccrual loans | Total loans | Allowance for loan losses | Total bank loans – net | ||||||||||||||||
First Mortgages (1,2) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
HELOCs (1,2) | ||||||||||||||||||||||||
Pledged asset lines | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total bank loans | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
First Mortgages (1,2) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
HELOCs (1,2) | ||||||||||||||||||||||||
Pledged asset lines | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total bank loans | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||
Three Months Ended | First Mortgages | HELOCs | Other | Total (1) | First Mortgages | HELOCs | Other | Total (1) | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Charge-offs | ( | ) | ( | ) | |||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||
Provision for loan losses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||||||||||
Six Months Ended | First Mortgages | HELOCs | Other | Total (1) | First Mortgages | HELOCs | Other | Total (1) | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Charge-offs | ( | ) | ( | ) | |||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||
Provision for loan losses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Nonaccrual loans (1) | $ | $ | |||||
Other real estate owned (2) | |||||||
Total nonperforming assets | |||||||
Troubled debt restructurings | |||||||
Total impaired assets | $ | $ |
• | Year of origination; |
• | Borrower FICO scores at origination (Origination FICO); |
• | Updated borrower FICO scores (Updated FICO); |
• | Loan-to-value (LTV) ratios at origination (Origination LTV); and |
• | Estimated current LTV ratios (Estimated Current LTV). |
June 30, 2019 | Balance | Weighted Average Updated FICO | Percent of Loans that are on Nonaccrual Status | |||||||
First Mortgages | ||||||||||
Estimated Current LTV | ||||||||||
<70% | $ | % | ||||||||
>70% – <90% | % | |||||||||
>90% – <100% | ||||||||||
>100% | ||||||||||
Total | $ | % | ||||||||
HELOCs | ||||||||||
Estimated Current LTV (1) | ||||||||||
<70% | $ | % | ||||||||
>70% – <90% | % | |||||||||
>90% – <100% | % | |||||||||
>100% | % | |||||||||
Total | $ | % | ||||||||
Pledged asset lines | ||||||||||
Weighted-Average LTV (1) | ||||||||||
=70% | $ | % |
December 31, 2018 | Balance | Weighted Average Updated FICO | Percent of Loans that are on Nonaccrual Status | |||||||
First Mortgages | ||||||||||
Estimated Current LTV | ||||||||||
<70% | $ | % | ||||||||
>70% – <90% | % | |||||||||
>90% – <100% | ||||||||||
>100% | ||||||||||
Total | $ | % | ||||||||
HELOCs | ||||||||||
Estimated Current LTV (1) | ||||||||||
<70% | $ | % | ||||||||
>70% – <90% | % | |||||||||
>90% – <100% | % | |||||||||
>100% | ||||||||||
Total | $ | % | ||||||||
Pledged asset lines | ||||||||||
Weighted-Average LTV (1) | ||||||||||
=70% | $ |
June 30, 2019 | First Mortgages | HELOCs | ||||||
Year of origination | ||||||||
Pre-2015 | $ | $ | ||||||
2015 | ||||||||
2016 | ||||||||
2017 | ||||||||
2018 | ||||||||
2019 | ||||||||
Total | $ | $ | ||||||
Origination FICO | ||||||||
<620 | $ | $ | ||||||
620 – 679 | ||||||||
680 – 739 | ||||||||
>740 | ||||||||
Total | $ | $ | ||||||
Origination LTV | ||||||||
<70% | $ | $ | ||||||
>70% – <90% | ||||||||
>90% – <100% | ||||||||
Total | $ | $ |
December 31, 2018 | First Mortgages | HELOCs | ||||||
Year of origination | ||||||||
Pre-2015 | $ | $ | ||||||
2015 | ||||||||
2016 | ||||||||
2017 | ||||||||
2018 | ||||||||
Total | $ | $ | ||||||
Origination FICO | ||||||||
<620 | $ | $ | ||||||
620 – 679 | ||||||||
680 – 739 | ||||||||
>740 | ||||||||
Total | $ | $ | ||||||
Origination LTV | ||||||||
<70% | $ | $ | ||||||
>70% – <90% | ||||||||
>90% – <100% | ||||||||
Total | $ | $ |
June 30, 2019 | Balance | |||
Converted to an amortizing loan by period end | $ | |||
Within 1 year | ||||
> 1 year – 3 years | ||||
> 3 years – 5 years | ||||
> 5 years | ||||
Total | $ |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Aggregate assets | Aggregate liabilities | Maximum exposure to loss | Aggregate assets | Aggregate liabilities | Maximum exposure to loss | |||||||||||||||||||
LIHTC investments (1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Other CRA investments (2) | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
June 30, 2019 | December 31, 2018 | |||||||
Interest-bearing deposits: | ||||||||
Deposits swept from brokerage accounts | $ | $ | ||||||
Checking | ||||||||
Savings and other | ||||||||
Total interest-bearing deposits | ||||||||
Non-interest-bearing deposits | ||||||||
Total bank deposits | $ | $ |
Date of | Principal Amount Outstanding | ||||||
Issuance | June 30, 2019 | December 31, 2018 | |||||
Fixed-rate Senior Notes: | |||||||
4.450% due July 22, 2020 | 07/22/10 | $ | $ | ||||
3.250% due May 21, 2021 | 05/22/18 | ||||||
3.225% due September 1, 2022 | 08/29/12 | ||||||
2.650% due January 25, 2023 | 12/07/17 | ||||||
3.550% due February 1, 2024 | 10/31/18 | ||||||
3.000% due March 10, 2025 | 03/10/15 | ||||||
3.850% due May 21, 2025 | 05/22/18 | ||||||
3.450% due February 13, 2026 | 11/13/15 | ||||||
3.200% due March 2, 2027 | 03/02/17 | ||||||
3.200% due January 25, 2028 | 12/07/17 | ||||||
4.000% due February 1, 2029 | 10/31/18 | ||||||
3.250% due May 22, 2029 | 05/22/19 | ||||||
Floating-rate Senior Notes: | |||||||
Three-month LIBOR + 0.32% due May 21, 2021 | 05/22/18 | ||||||
Total Senior Notes | |||||||
5.450% Finance lease obligation (1) | 06/04/04 | ||||||
Unamortized discount — net | ( | ) | ( | ) | |||
Debt issuance costs | ( | ) | ( | ) | |||
Total long-term debt | $ | $ |
Maturities | |||
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total maturities | |||
Unamortized discount — net | ( | ) | |
Debt issuance costs | ( | ) | |
Total long-term debt | $ |
Leases | Balance Sheet Classification | June 30, 2019 | ||
Assets | ||||
Operating lease assets | Other assets | $ | ||
Liabilities | ||||
Operating lease liabilities | Accrued expenses and other liabilities | $ |
Lease Cost | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||
Operating lease cost (1) | $ | $ | |||||
Variable lease cost (2) | $ | $ |
Lease Term and Discount Rate | ||
Weighted-average remaining lease term (years) | ||
Weighted-average discount rate | % |
Maturity of Lease Liabilities | Operating Leases (1) | ||
2019 | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
After 2023 | |||
Total lease payments | |||
Less: Interest | |||
Present value of lease liabilities | $ |
Operating Leases | Subleases | Net | |||||||
2019 | $ | $ | $ | ||||||
2020 | |||||||||
2021 | |||||||||
2022 | |||||||||
2023 | |||||||||
Thereafter | |||||||||
Total | $ | $ | $ |
June 30, 2019 | December 31, 2018 | ||||||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ | $ | |||||
Commitments to purchase First Mortgage loans | |||||||
Total | $ | $ |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | |||||||||||||||||||||||||
Gross Assets/ Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Presented in the Condensed Consolidated Balance Sheets | Counterparty Offsetting | Collateral | Net Amount | ||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Resale agreements (1) | $ | $ | $ | $ | $ | ( | ) | (2) | $ | ||||||||||||||||
Securities borrowed (3) | ( | ) | |||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
Liabilities | |||||||||||||||||||||||||
Securities loaned (4,5) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Resale agreements (1) | $ | $ | $ | $ | $ | ( | ) | (2) | $ | ||||||||||||||||
Securities borrowed (3) | ( | ) | ( | ) | |||||||||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
Liabilities | |||||||||||||||||||||||||
Securities loaned (4,5) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
June 30, 2019 | December 31, 2018 | |||||||||||
Fair value of client securities available to be pledged | $ | $ | ||||||||||
Fair value of client securities pledged for: | ||||||||||||
Fulfillment of requirements with the Options Clearing Corporation (1) | ||||||||||||
Fulfillment of client short sales | ||||||||||||
Securities lending to other broker-dealers | ||||||||||||
Total collateral pledged | $ | $ |
(1) |
June 30, 2019 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | |||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||
Commercial paper | |||||||||||||||
Total cash equivalents | |||||||||||||||
Investments segregated and on deposit for regulatory purposes: | |||||||||||||||
Certificates of deposit | |||||||||||||||
U.S. Government securities | |||||||||||||||
Total investments segregated and on deposit for regulatory purposes | |||||||||||||||
Other securities owned: | |||||||||||||||
Equity and bond mutual funds | |||||||||||||||
State and municipal debt obligations | |||||||||||||||
Equity, U.S. Government and corporate debt, and other securities | |||||||||||||||
Schwab Funds® money market funds | |||||||||||||||
Total other securities owned | |||||||||||||||
Available for sale securities: | |||||||||||||||
U.S. agency mortgage-backed securities | |||||||||||||||
U.S. Treasury securities | |||||||||||||||
Asset-backed securities | |||||||||||||||
Corporate debt securities | |||||||||||||||
Certificates of deposit | |||||||||||||||
U.S. agency notes | |||||||||||||||
Commercial paper | |||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||
Total available for sale securities | |||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2018 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | |||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||
Commercial paper | |||||||||||||||
Total cash equivalents | |||||||||||||||
Investments segregated and on deposit for regulatory purposes: | |||||||||||||||
Certificates of deposit | |||||||||||||||
U.S. Government securities | |||||||||||||||
Total investments segregated and on deposit for regulatory purposes | |||||||||||||||
Other securities owned: | |||||||||||||||
Equity and bond mutual funds | |||||||||||||||
State and municipal debt obligations | |||||||||||||||
Equity, U.S. Government and corporate debt, and other securities | |||||||||||||||
Schwab Funds® money market funds | |||||||||||||||
Total other securities owned | |||||||||||||||
Available for sale securities: | |||||||||||||||
U.S. agency mortgage-backed securities | |||||||||||||||
U.S. Treasury securities | |||||||||||||||
Asset-backed securities | |||||||||||||||
Corporate debt securities | |||||||||||||||
Certificates of deposit | |||||||||||||||
U.S. agency notes | |||||||||||||||
Commercial paper | |||||||||||||||
Foreign government agency securities | |||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||
Total available for sale securities | |||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2019 | Carrying Amount | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Cash and investments segregated and on deposit for regulatory purposes | |||||||||||||||||||
Receivables from brokers, dealers, and clearing organizations | |||||||||||||||||||
Receivables from brokerage clients — net | |||||||||||||||||||
Held to maturity securities: | |||||||||||||||||||
U.S. agency mortgage-backed securities | |||||||||||||||||||
Asset-backed securities | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||
U.S. state and municipal securities | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||
Certificates of deposit | |||||||||||||||||||
Foreign government agency securities | |||||||||||||||||||
Other | |||||||||||||||||||
Total held to maturity securities | |||||||||||||||||||
Bank loans — net: | |||||||||||||||||||
First Mortgages | |||||||||||||||||||
HELOCs | |||||||||||||||||||
Pledged asset lines | |||||||||||||||||||
Other | |||||||||||||||||||
Total bank loans — net | |||||||||||||||||||
Other assets | |||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||||
Bank deposits | $ | $ | $ | $ | $ | ||||||||||||||
Payables to brokers, dealers, and clearing organizations | |||||||||||||||||||
Payables to brokerage clients | |||||||||||||||||||
Accrued expenses and other liabilities | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Total | $ | $ | $ | $ | $ |
December 31, 2018 | Carrying Amount | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Cash and investments segregated and on deposit for regulatory purposes | |||||||||||||||||||
Receivables from brokers, dealers, and clearing organizations | |||||||||||||||||||
Receivables from brokerage clients — net | |||||||||||||||||||
Held to maturity securities: | |||||||||||||||||||
U.S. agency mortgage-backed securities | |||||||||||||||||||
Asset-backed securities | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||
U.S. state and municipal securities | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | |||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||
Certificates of deposit | |||||||||||||||||||
Foreign government agency securities | |||||||||||||||||||
Other | |||||||||||||||||||
Total held to maturity securities | |||||||||||||||||||
Bank loans — net: | |||||||||||||||||||
First Mortgages | |||||||||||||||||||
HELOCs | |||||||||||||||||||
Pledged asset lines | |||||||||||||||||||
Other | |||||||||||||||||||
Total bank loans — net | |||||||||||||||||||
Other assets | |||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||||
Bank deposits | $ | $ | $ | $ | $ | ||||||||||||||
Payables to brokers, dealers, and clearing organizations | |||||||||||||||||||
Payables to brokerage clients | |||||||||||||||||||
Accrued expenses and other liabilities | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Liquidation Preference Per Share | Dividend Rate in Effect at June 30, 2019 | Earliest Redemption Date | Date at Which Dividend Rate Becomes Floating | Floating Annual Rate of Three-Month LIBOR plus: | ||||||||||||||||
Shares Issued and Outstanding (In thousands) at | Carrying Value at | |||||||||||||||||||
June 30, 2019 (1) | December 31, 2018 (1) | June 30, 2019 | December 31, 2018 | Issue Date | ||||||||||||||||
Fixed-rate: | ||||||||||||||||||||
Series C | $ | $ | $ | 08/03/15 | % | 12/01/20 | N/A | N/A | ||||||||||||
Series D | 03/07/16 | % | 06/01/21 | N/A | N/A | |||||||||||||||
Fixed-to-floating-rate: | ||||||||||||||||||||
Series A | 01/26/12 | % | 02/01/22 | 02/01/22 | % | |||||||||||||||
Series E | 10/31/16 | % | 03/01/22 | 03/01/22 | % | |||||||||||||||
Series F | 10/31/17 | % | 12/01/27 | 12/01/27 | % | |||||||||||||||
Total preferred stock | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Total (in millions) | Per Share Amount | Total (in millions) | Per Share Amount | Total (in millions) | Per Share Amount | Total (in millions) | Per Share Amount | |||||||||||||||||||||||||
Series A | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Series C | ||||||||||||||||||||||||||||||||
Series D | ||||||||||||||||||||||||||||||||
Series E | ||||||||||||||||||||||||||||||||
Series F | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
2019 | 2018 | ||||||||||||||||||||||
Three Months Ended June 30, | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | |||||||||||||||||
Change in net unrealized gain (loss) on available for sale securities: | |||||||||||||||||||||||
Net unrealized gain (loss) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||
Other reclassifications included in other revenue | ( | ) | ( | ) | |||||||||||||||||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | ( | ) | ( | ) | |||||||||||||||||||
Other comprehensive income (loss) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
2019 | 2018 | ||||||||||||||||||||||
Six Months Ended June 30, | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | |||||||||||||||||
Change in net unrealized gain (loss) on available for sale securities: | |||||||||||||||||||||||
Net unrealized gain (loss) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||
Other reclassifications included in other revenue | ( | ) | ( | ) | |||||||||||||||||||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | ( | ) | ( | ) | |||||||||||||||||||
Other comprehensive income (loss) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
Total AOCI | |||
Balance at March 31, 2018 | $ | ( | ) |
Available for sale securities: | |||
Net unrealized gain (loss) | ( | ) | |
Held to maturity securities: | |||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | |||
Balance at June 30, 2018 | $ | ( | ) |
Balance at March 31, 2019 | $ | ( | ) |
Available for sale securities: | |||
Net unrealized gain (loss), excluding transfers to available for sale from held to maturity | |||
Other reclassifications included in other revenue | ( | ) | |
Held to maturity securities: | |||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | |||
Balance at June 30, 2019 | $ |
Total AOCI | |||
Balance at December 31, 2017 | $ | ( | ) |
Adoption of accounting standards | ( | ) | |
Available for sale securities: | |||
Net unrealized gain (loss) | ( | ) | |
Held to maturity securities: | |||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | |||
Balance at June 30, 2018 | $ | ( | ) |
Balance at December 31, 2018 | $ | ( | ) |
Available for sale securities: | |||
Net unrealized gain (loss), excluding transfers to available for sale from held to maturity | |||
Net unrealized gain on securities transferred to available for sale from held to maturity (1) | |||
Other reclassifications included in other revenue | ( | ) | |
Held to maturity securities: | |||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | |||
Balance at June 30, 2019 | $ |
Actual (1) | Minimum to be Well Capitalized | Minimum Capital Requirement | |||||||||||||||||||
June 30, 2019 | Amount | Ratio | Amount | Ratio | Amount | Ratio (2) | |||||||||||||||
CSC | |||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | % | N/A | $ | % | ||||||||||||||||
Tier 1 Risk-Based Capital | % | N/A | % | ||||||||||||||||||
Total Risk-Based Capital | % | N/A | % | ||||||||||||||||||
Tier 1 Leverage | % | N/A | % | ||||||||||||||||||
Supplementary Leverage Ratio (1) | % | N/A | % | ||||||||||||||||||
CSB | |||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | % | $ | % | $ | % | |||||||||||||||
Tier 1 Risk-Based Capital | % | % | % | ||||||||||||||||||
Total Risk-Based Capital | % | % | % | ||||||||||||||||||
Tier 1 Leverage | % | % | % | ||||||||||||||||||
Supplementary Leverage Ratio (1) | % | N/A | N/A | % | |||||||||||||||||
December 31, 2018 | |||||||||||||||||||||
CSC | |||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | % | N/A | $ | % | ||||||||||||||||
Tier 1 Risk-Based Capital | % | N/A | % | ||||||||||||||||||
Total Risk-Based Capital | % | N/A | % | ||||||||||||||||||
Tier 1 Leverage | % | N/A | % | ||||||||||||||||||
CSB | |||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | % | $ | % | $ | % | |||||||||||||||
Tier 1 Risk-Based Capital | % | % | % | ||||||||||||||||||
Total Risk-Based Capital | % | % | % | ||||||||||||||||||
Tier 1 Leverage | % | % | % |
June 30, 2019 | December 31, 2018 | |||||||
Net Capital | $ | $ | ||||||
Minimum net capital required | ||||||||
2% of aggregate debit balances | ||||||||
Net Capital in excess of required net capital | $ | $ |
Investor Services | Advisor Services | Total | |||||||||||||||||||||
Three Months Ended June 30, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net Revenues | |||||||||||||||||||||||
Net interest revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Asset management and administration fees | |||||||||||||||||||||||
Trading revenue | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total net revenues | |||||||||||||||||||||||
Expenses Excluding Interest | |||||||||||||||||||||||
Income before taxes on income | $ | $ | $ | $ | $ | $ |
Investor Services | Advisor Services | Total | |||||||||||||||||||||
Six Months Ended June 30, | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net Revenues | |||||||||||||||||||||||
Net interest revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Asset management and administration fees | |||||||||||||||||||||||
Trading revenue | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total net revenues | |||||||||||||||||||||||
Expenses Excluding Interest | |||||||||||||||||||||||
Income before taxes on income | $ | $ | $ | $ | $ | $ |
Month | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Program | ||||||||||
April: | ||||||||||||||
Share repurchase program | 437 | $ | 45.74 | 437 | $ | 3,980 | ||||||||
Employee transactions (1) | 4 | $ | 43.88 | N/A | N/A | |||||||||
May: | ||||||||||||||
Share repurchase program | 9,876 | $ | 43.51 | 9,876 | $ | 3,550 | ||||||||
Employee transactions (1) | 5 | $ | 45.45 | N/A | N/A | |||||||||
June: | ||||||||||||||
Share repurchase program | 18,794 | $ | 40.95 | 18,794 | $ | 2,780 | ||||||||
Employee transactions (1) | 8 | $ | 41.90 | N/A | N/A | |||||||||
Total: | ||||||||||||||
Share repurchase program | 29,107 | $ | 41.91 | 29,107 | $ | 2,780 | ||||||||
Employee Transactions (1) | 17 | $ | 43.39 | N/A | N/A |
Exhibit Number | Exhibit | ||
10.395 | (1) | ||
10.396 | (1) | ||
31.1 | |||
31.2 | |||
32.1 | (1) | ||
32.2 | (1) | ||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | (2) | |
101.SCH | Inline XBRL Taxonomy Extension Schema | (2) | |
101.CAL | Inline XBRL Taxonomy Extension Calculation | (2) | |
101.DEF | Inline XBRL Extension Definition | (2) | |
101.LAB | Inline XBRL Taxonomy Extension Label | (2) | |
101.PRE | Inline XBRL Taxonomy Extension Presentation | (2) | |
104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | (2) | |
(1 | ) | Furnished as an exhibit to this Quarterly Report on Form 10-Q. | |
(2 | ) | Attached as Exhibit 101 to this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019 are the following materials formatted in Inline XBRL (Extensible Business Reporting Language) (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements. |
THE CHARLES SCHWAB CORPORATION | |||
(Registrant) | |||
Date: | August 7, 2019 | /s/ Peter Crawford | |
Peter Crawford | |||
Executive Vice President and Chief Financial Officer |
1. | DEFINITIONS. | 1 | |
2. | THE CREDIT FACILITY. | 13 | |
2.1 The Revolving Credit Facility | 13 | ||
2.2 Term Loan Facility | 14 | ||
2.3 Evidence of Borrowing/Promissory Notes | 14 | ||
2.4 Making of Revolving Loans and Term Loans, Borrowings; Interest Periods; | |||
Notice | 15 | ||
2.5 Conversion and Continuation Elections. | 16 | ||
2.6 Interest Periods | 18 | ||
2.7 Interest Rates | 18 | ||
2.8 Substitute Rates | 19 | ||
2.9 Fees | 19 | ||
2.10 Reduction of Credit | 20 | ||
2.11 Termination Date; Extensions | 20 | ||
2.12 Payments by the Lenders to the Agent | 21 | ||
2.13 Sharing of Payments, Etc. | 22 | ||
2.14 Computation of Fees and Interest | 22 | ||
2.15 Defaulting Lenders | 23 | ||
3. | PAYMENT. | 24 | |
3.1 Repayment | 24 | ||
3.2 Method of Payment | 24 | ||
3.3 Optional Prepayment | 24 | ||
3.4 Taxes/Net Payments | 25 | ||
3.5 Illegality | 25 | ||
3.6 Increased Costs and Reduction of Return | 26 | ||
3.7 Funding Losses | 27 | ||
3.8 Certificates of Lenders | 27 | ||
3.9 Substitution of Lenders | 27 | ||
3.10 Survival | 28 | ||
4. | CONDITIONS. | 28 | |
4.1 Conditions Precedent to the Effectiveness of this Agreement | 28 | ||
4.2 Conditions Precedent to Revolving Loans and Term Loans | 29 | ||
5. | REPRESENTATIONS AND WARRANTIES. | 30 | |
5.1 Organization and Good Standing | 30 | ||
5.2 Corporate Power and Authority | 30 | ||
5.3 Enforceability | 30 | ||
5.4 No Violation of Laws or Agreements | 30 | ||
5.5 No Consents | 31 | ||
5.6 Financial Statements | 31 | ||
5.7 Broker Subsidiary Licenses, Etc | 31 | ||
5.8 Broker Subsidiary/Broker Registration | 31 | ||
5.9 Broker Subsidiary/SIPC | 31 | ||
5.10 Taxes | 31 | ||
5.11 ERISA | 31 | ||
5.12 No Extension of Credit for Default Remedy/Hostile Acquisition | 32 | ||
5.13 Use of Proceeds/Margin Regulations | 32 | ||
5.14 Authorized Persons | 32 | ||
5.15 Material Contracts | 32 | ||
5.16 Litigation | 32 | ||
5.17 Investment Company | 32 | ||
5.18 Designated Persons | 32 | ||
6. | AFFIRMATIVE COVENANTS. | 32 | |
6.1 Notice of Events of Default | 33 | ||
6.2 Financial Statements | 33 | ||
6.3 Insurance | 33 | ||
6.4 Books and Records | 33 | ||
6.5 Change in Business | 33 | ||
6.6 Capital Requirements | 33 | ||
6.7 Anti-Corruption Laws and Sanctions | 33 | ||
7. | NEGATIVE COVENANTS. | 33 | |
7.1 Net Capital | 34 | ||
7.2 Minimum Stockholders’ Equity | 34 | ||
7.3 Merger/Disposition of Assets | 34 | ||
7.4 Broker Subsidiary Indebtedness | 34 | ||
7.5 Indebtedness Secured by Subsidiary Stock | 34 | ||
7.6 Liens and Encumbrances | 35 | ||
7.7 Use of Proceeds | 35 | ||
8. | EVENTS OF DEFAULT. | 35 | |
8.1 Defaults | 35 | ||
8.2 Remedies | 37 | ||
9. | THE AGENT. | 37 | |
9.1 Appointment and Authorization | 37 | ||
9.2 Delegation of Duties | 38 | ||
9.3 Liability of Agent | 38 | ||
9.4 Reliance by Agent | 38 | ||
9.5 Notice of Default | 39 | ||
9.6 Credit Decision | 39 | ||
9.7 Indemnification of Agent | 39 | ||
9.8 Agent in Individual Capacity | 40 | ||
9.9 Successor Agent | 40 | ||
9.10 Withholding Tax | 40 | ||
9.11 Co-Agents | 42 | ||
9.12 Certain ERISA Matters | 42 | ||
10. | MISCELLANEOUS. | 44 | |
10.1 Amendments and Waivers | 44 | ||
10.2 Notices | 45 | ||
10.3 No Waiver-Cumulative Remedies | 47 | ||
10.4 Costs and Expenses | 47 | ||
10.5 Borrower Indemnification | 47 | ||
10.6 Payments Set Aside | 48 | ||
10.7 Successors and Assigns | 48 | ||
10.8 Assignments, Participations Etc | 49 | ||
10.9 Confidentiality | 51 | ||
10.10 Notification of Addresses, Lending Offices, Etc | 53 | ||
10.11 Counterparts | 53 | ||
10.12 Severability | 53 | ||
10.13 No Third Parties Benefited | 53 | ||
10.14 Governing Law and Jurisdiction | 53 | ||
10.15 Waiver of Jury Trial | 54 | ||
10.16 Entire Agreement | 55 | ||
10.17 Headings | 55 | ||
10.18 USA Patriot Act | 55 | ||
10.19 Acknowledgement and Consent to Bail-In of EEA Financial Institutions | 55 | ||
SCHEDULES: | |||
Schedule 1 - Lenders’ Commitments | |||
Schedule 2 - List of Borrowing Agreements | |||
Schedule 6.2 – Compliance Certificate | |||
Schedule 10.2 - Notices | |||
EXHIBITS: | |||
Exhibit A-1 - Revolving Note | |||
Exhibit A-2 - Term Note | |||
Exhibit B - Borrowing Advice | |||
Exhibit C - Notice of Conversion/Continuation | |||
Exhibit D - Commitment and Termination Date Extension Request | |||
Exhibit E - Borrower’s Opinion of Counsel | |||
Exhibit F - Form of Assignment and Acceptance |
1. | DEFINITIONS. The following terms have the following meanings: |
Affiliate: | As to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. A Person shall be deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities, membership interests, by contract, or otherwise. |
Agent: | Citibank in its capacity as administrative agent for the Lenders hereunder and any successor agent appointed under Section 9.9. |
Persons: | Citibank and any successor agent appointed under Section 9.9, together with Citibank’s Affiliates, and the officers, directors, employees, agents and attorney-in-fact of such Persons and Affiliates. |
Agreement: | This Credit Agreement. |
Payment Office: | The address for payments set forth on the signature page hereto in relation to the Agent, or such other address as the Agent may from time to time specify. |
Laws | The U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act, each as may be amended, and any rules or regulations thereunder. |
Arrangers: | Citibank, N.A. and JPMorgan Chase Bank, N.A. |
Assignee: | The meaning specified in Section 10.8. |
Attorney Costs: | Without duplication, (1) all fees and disbursements of any law firm or other external counsel, and (2) the allocated cost of internal legal services and all disbursements of internal counsel. |
Bail-In Action: | The meaning specified in Section 10.19. |
Bank Subsidiary: | Any Federal savings association (as defined in 12 U.S.C. §1813(b)(2), any national member bank (as defined in 12 U.S.C. §1813(d)(1)) or state member bank (as defined in 12 U.S.C.§1813(d)(2)) that is a subsidiary (as defined in 12 USC §1841(d)) of the Borrower. |
Bankruptcy Code: | The Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended. |
Base Rate: | For any day, the highest of: (a) 0.500% per annum above the Federal Funds Rate; (b) the rate of interest in effect for such day as publicly announced from time to time by Citibank, N.A. as its “Base Rate” and (c) the ICE Benchmark Administration Interest Settlement Rate (or the successor thereto if the ICE Benchmark Administration is no longer making such a rate available) applicable to Dollars for a period of one month (“One Month LIBOR”) plus 1.00% (for the avoidance of doubt, the One Month LIBOR for any day shall be based on the rate appearing on Reuters LIBOR01 Page (or other commercially available source providing such quotations as designated by the Agent from time to time) at approximately 11:00 a.m. London time on such day); provided that, if One Month LIBOR shall be less than zero, such rate shall be deemed zero for purposes of this Agreement. The “Base Rate” described in clause (b) is a rate set by Citibank, N.A. based upon various factors including Citibank, N.A.’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate announced by Citibank, N.A. shall take effect at the opening of business on the day specified in the public announcement of such change. |
Base Rate Loan: | A Revolving Loan or Term Loan that bears interest based on the Base Rate. |
Borrowing: | A borrowing hereunder consisting of Revolving Loans or Term Loans of the same Type made to the Borrower on the same day by the Lenders under Section 2 and, other than in the case of a Base Rate Loan, having the same Interest Period. |
Borrowing Advice: | A written request made by the Borrower with respect to any Loan substantially in the form of Exhibit B specifying the information required in Section 2.4 hereof and executed by the Borrower from time to time. |
Agreements: | The credit agreement(s) between the Borrower and the lenders listed in Schedule 2. |
Borrowing Date: | Any date on which a Borrowing occurs under Section 2.4. |
Broker Subsidiary: | Charles Schwab & Co., Inc., a California corporation, and its successors and assigns. |
Business Day: | A day other than a Saturday, Sunday or any other day on which commercial banks are authorized or required to close in California or New York and, if the applicable Business Day relates to a Eurodollar Rate Loan, such a day on which dealings are carried on in the applicable offshore dollar interbank market. |
Regulation: | Any guideline, directive or requirement of any central bank or other Governmental Authority, or any other law, rule or regulation, whether or not having the force of law, in each case, regarding capital adequacy of any bank or of any corporation controlling a bank. For the avoidance of doubt, Capital Adequacy Regulation shall include all rules, guidelines or directives concerning capital adequacy (x) issued in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or (y) promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, regardless of the date enacted, adopted or issued. |
Control: | The consummation of a reorganization, merger or consolidation by the Borrower or the sale or other disposition of all or substantially all of the assets of the Borrower (a “Business Combination”), unless, following such Business Combination, (i) no person or |
Citibank: | Citibank, N.A., a national banking association. |
Closing Date: | The date (not before May 31, 2019) on which all conditions precedent set forth in Section 4 are satisfied or waived by all Lenders or, in the case of subsection 4.1(g), waived by the person entitled to receive such payment. |
Code: | The Internal Revenue Code of 1986, as amended, and Regulations promulgated thereunder. |
Commitment: | The meaning specified in Section 2.1. |
Commitment Fee: | The meaning specified in subsection 2.9(b). |
Stockholders’ Equity: | With respect to any Person, as of any date of determination, all amounts that would, in accordance with GAAP, be included under shareholders’ equity on a consolidated balance sheet of such Person as at such date, including any preferred stock, but excluding accumulated other comprehensive income (or loss). |
Subsidiary: | Any corporation 80% of whose voting stock (except for any qualifying shares) is owned directly or indirectly by the Borrower. |
Continuation Date: | Any date on which under Section 2.5, the Borrower (a) converts Loans of one Type to another Type, or (b) continues as Loans of the same Type, but with a new Interest Period, Loans having Interest Periods expiring on such date. |
Credit: | The aggregate amount of the Commitments of all Lenders to make Revolving Loans under the Revolving Credit Facility and Term Loans under the Term Loan Facility in an amount not to exceed |
Debtor Relief Laws: | The Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect. |
Default: | Any event or circumstance which, with the giving of notice, the lapse of time, or both, would (if not cured or otherwise remedied during such time) constitute an Event of Default. |
Defaulting Lender: | Subject to Section 2.15(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified the Borrower or the Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Agent or the Borrower, to confirm in writing to the Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law or a Bail-In Action, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a |
Designated Person: | A Person named on (a) the list of Specially Designated Nationals and Blocked Persons issued by OFAC or any successor office or agency within the U.S. Department of the Treasury, or similar issuance by the U.S. Department of State, or (b) any similar list issued by the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom. |
dollars, and $: | Each mean lawful money of the United States. |
Effective Amount: | With respect to any Revolving Loans and Term Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any Borrowings and prepayments or repayments of Revolving Loans and Term Loans occurring on such date. |
Eligible Assignee: | (i) A commercial bank organized under the laws of the United States, or any state thereof, and having total equity capital of at least $1,000,000,000 and a senior debt rating of a least “A” by Standard & Poor’s Ratings Service, a Division of The McGraw- Hill Companies, Inc. or at least “A-2” by Moody’s Investors Service, Inc. or, if not rated by either of the foregoing organizations, an equivalent rating from a nationally recognized statistical rating organization; or (ii) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development (the OECD), or a political subdivision of any such country, and having total equity capital of at least $1,000,000,000 and a senior debt rating of at least “A” by Standard & Poor’s Ratings Service, a Division of The McGraw-Hill Companies, Inc. or at least “A-2” by Moody’s Investors Service, Inc., or, if not rated by either of the foregoing organizations, an equivalent rating from a nationally |
Base Rate: | For any Interest Period: |
Eurodollar Rate: | The rate obtained by dividing (i) Eurodollar Base Rate by (ii) a percentage (expressed as a decimal) equal to 1.00 minus the Eurodollar Rate Reserve Percentage. |
Loan: | A Revolving Loan or Term Loan that bears interest based on the Eurodollar Rate. |
Reserve Percentage: | For any Interest Period for any Loan for which the Eurodollar Rate has been selected or is applicable, the percentage (expressed as a decimal) as calculated by the Agent that is in effect on the first day of such Interest Period, as prescribed by the Board of Governors of the U.S. Federal Reserve System (or any successor), for determining reserve requirements to be maintained by the Agent |
Event of Default: | Any of the events or circumstances specified in Section 8.1. |
Exchange Act: | The Securities and Exchange Act of 1934, as amended, and regulations promulgated thereunder. |
FATCA: | Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to such intergovernmental agreement. |
Federal Funds Rate: | For any day, the interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York; provided that, if the Federal Funds Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement. |
Fee Letters: | The meaning specified in subsection 2.9(a). |
FRB: | The Board of Governors of the Federal Reserve System, and any Governmental Authority succeeding to any of its principal functions. |
GAAP: | Generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination. |
Authority: | Any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing. |
Hedge Agreements: | Interest rate swap, interest rate cap or interest rate collar agreements. |
Indebtedness: | As to any corporation, any obligation of, or guaranteed or assumed by, such corporation for (i) borrowed money evidenced by bonds, debentures, notes or other similar instruments, (ii) the deferred purchase price of property or services (excluding trade and other accounts payable), (iii) the leasing of tangible personal property under leases which, under any applicable Financial Accounting Standards Board Statement, have been or should be recorded as capitalized leases, (iv) direct or contingent obligations under letters of credit issued for the account of such corporation or (v) net obligations in respect of Hedge Agreements entered into with any counterparty. |
Liabilities: | The meaning specified in Section 10.5. |
Proceeding: | As to a debtor, (a) any case, action or proceeding before any court or other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the benefit of creditors, composition, marshaling of assets for creditors, or other similar arrangement in respect of its creditors generally or any substantial portion of its creditors, undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code. |
Payment Date: | As to any Loan other than a Base Rate Loan, the last day of each Interest Period applicable to such Loan and, as to any Base Rate Loan, the last Business Day of each calendar quarter, provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the date that falls three months after the |
Interest Period: | Any period specified in accordance with Section 2.6 hereof. |
Parent: | Schwab Holdings, Inc., a Delaware corporation and its successors and assigns. |
Lender: | The meaning specified in the introductory clause hereto. |
Lending Office: | As to any Lender, the office or offices of such Lender specified as its “Lending Office” or “Domestic Lending Office” or “Offshore Lending Office”, as the case may be, on Schedule 10.2, or such other office or offices as such Lender may from time to time notify the Borrower and the Agent. |
Loan: | An extension of credit by a Lender to the Borrower under Section 2 in the form of a Revolving Loan or Term Loan. |
Loan Document: | This Agreement, any Notes, the Fee Letters, and all other documents delivered to the Agent or any Lender in connection herewith. |
(b) | the sum of – |
Net Capital Ratio: | As of the date of determination, that percentage of net capital to aggregate debit items of any entity subject to the Net Capital Rule 15c3-1 promulgated by the Securities Exchange Commission pursuant to the Securities Exchange Act of 1934 and any successor or replacement rule or regulation therefor. |
Net Earnings: | With respect to any fiscal period, the consolidated net income of the Borrower and its Subsidiaries, after taking into account all extraordinary items, taxes and other proper charges and reserves |
Lender: | At any time, each Lender that is not a Defaulting Lender at such time. |
Note: | A promissory note executed by the Borrower in favor of a Lender pursuant to Section 2.3 in substantially the form of Exhibits A-1 and A-2. |
Continuation: | A notice in substantially the form of Exhibit C. |
Obligations: | All borrowings, debts, liabilities, obligations, covenants and duties arising under any Loan Document owing by the Borrower to any Lender, the Agent, or any Indemnified Person, whether direct or indirect (including those acquired by assignment), absolute or contingent, due or to become due, now existing or hereafter arising. |
OFAC: | The U.S. Department of the Treasury’s Office of Foreign Assets Control. |
Person: | An individual, partnership, corporation, limited liability company, business trust, unincorporated association, trust, joint venture or other entity or Governmental Authority. |
Pro Rata Share: | As to any Lender at any time, the percentage equivalent (expressed as a decimal, rounded to the ninth decimal place) at such time of such Lender’s Commitment divided by the combined Commitments of all Lenders. |
Reference Banks: | Citibank, N.A. and JPMorgan Chase Bank, N.A. |
Replacement Lender: | The meaning specified in Section 3.9. |
Required Lenders: | At any time at least two Lenders then holding in excess of 50% of the then aggregate unpaid principal amount of the Loans, or, if no such principal amount is then outstanding, at least two Lenders then having in excess of 50% of the Commitments. The Loans owing to, and Commitments of, any Defaulting Lender shall be disregarded in determining Required Lenders at any time. |
Responsible Officer: | Any senior vice president or more senior officer of the Borrower, or any other officer having substantially the same authority and responsibility; or, with respect to compliance with financial covenants, the chief financial officer, executive vice president- finance, controller or the treasurer of the Borrower, or any other officer having substantially the same authority and responsibility. |
Facility: | The revolving credit facility available to the Borrower pursuant to Section 2.1 hereof. |
Revolving Loan: | The meaning specified in Section 2.1, and may be a Base Rate Loan or a Eurodollar Rate Loan (each a “Type” of Revolving Loan). |
Revolving Note: | The meaning specified in Section 2.3. |
Termination Date: | The earlier to occur of: |
(a) | May 29, 2020; and |
(b) | the date on which the Commitments terminate in accordance with the provisions of this Agreement. |
Sanctions: | Economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) OFAC or any successor office or agency within the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom. |
SEC: | The Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions. |
Series A: | Senior debt securities or senior subordinated debt securities issued by The Charles Schwab Corporation with a maturity between 9 months and 30 years in accordance with the Senior Indenture, as amended, and the Senior Subordinated Indenture, as amended, both dated as of July 15, 1993 by and between The Charles Schwab Corporation and The Bank of New York Mellon Trust Company, N.A. as successor trustee to The Chase Manhattan Bank. |
Subsidiary: | Any corporation or other entity of which a sufficient number of voting securities or other interests having power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by the Borrower. |
Term Commitment: | Seven Hundred Fifty Million and no/100 Dollars ($750,000,000.00), as the same may be reduced under Section 2.10. |
Term Loan: | The meaning specified in Section 2.2 and may be a Base Rate Loan or Eurodollar Rate Loan (each a “Type” of Term Loan). |
Term Loan Facility: | The term loan facility available to the Borrower pursuant to Section 2.2 hereof. |
Date: | The meaning specified in Section 2.2. |
Term Note: | The meaning specified in Section 2.3. |
Term Out Fee: | The meaning specified in subsection 2.9(c). |
Type: | The meaning specified in the definition of “Revolving Loan”. |
2. | THE CREDIT FACILITY. |
2.5 | Conversion and Continuation Elections. |
(B) | the aggregate amount of the Loan or Loans to be converted |
2.7 | Interest Rates. |
2.9 | Fees. |
2.12 | Payments by the Lenders to the Agent. |
2.14 | Computation of Fees and Interest. |
2.15 | Defaulting Lenders. |
3. | PAYMENT. |
3.5 | Illegality. |
3.6 | Increased Costs and Reduction of Return. |
4. | CONDITIONS. |
5. | REPRESENTATIONS AND WARRANTIES. |
6. | AFFIRMATIVE COVENANTS. |
7. | NEGATIVE COVENANTS. |
(b) | intercompany Indebtedness; and |
(c) | other Indebtedness in the aggregate not exceeding $100,000,000. |
8. | EVENTS OF DEFAULT. |
9. | THE AGENT. |
9.4 | Reliance by Agent. |
9.10 | Withholding Tax. |
9.12 | Certain ERISA Matters. |
Benefit Plan: | Any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”. |
PTE: | A prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time. |
10. | MISCELLANEOUS. |
10.2 | Notices. |
10.4 | Costs and Expenses. The Borrower shall: |
10.8 | Assignments, Participations Etc. |
10.14 | Governing Law and Jurisdiction. |
10.15 | Waiver of Jury Trial. |
(b) | the effects of any Bail-In Action on any such liability, including, if |
Bail-In Action: | The exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution. |
Bail-In Legislation: | With respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule. |
Institution: | (a) Any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. |
Country: | Any of the member states of the European Union, Iceland, Liechtenstein, and Norway. |
Authority: | Any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. |
Schedule: | The EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time. |
Association: | The London trade association, which is the self-described authoritative voice of the syndicated loan markets in Europe, the Middle East and Africa. |
Conversion Powers: | With respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. |
Borrower: | |
THE CHARLES SCHWAB CORPORATION | |
By: | /s/ William F. Quinn |
Name: | William F. Quinn |
Title: | Senior Vice President and Treasurer |
Lenders: | |
CITIBANK, N.A., as Agent and | |
individually as Lender | |
By: | /s/ Maureen Maroney |
Name: | Maureen Maroney |
Title: | Vice President |
JPMORGAN CHASE BANK, N.A. | |
By: | /s/ Victoria Teterceva |
Name: | Victoria Teterceva |
Title: | Vice President |
BANK OF AMERICA, N.A. | |
By: | /s/ Maryanne Fitzmaurice |
Name: | Maryanne Fitzmaurice |
Title: | Director |
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH | |
By: | /s/ Doreen Barr |
Name: | Doreen Barr |
Title: | Authorized Signatory |
By: | /s/ Komal Shah |
Name: | Komal Shah |
Title: | Authorized Signatory |
THE BANK OF NEW YORK MELLON | |
By: | /s/ Matthew Thigpen |
Name: | Matthew Thigpen |
Title: | Vice President |
WELLS FARGO BANK, NATIONAL ASSOCIATION | |
By: | /s/ James Mastroianna |
Name: | James Mastroianna |
Title: | Director |
GOLDMAN SACHS BANK USA | |
By: | /s/ Ryan Durkin |
Name: | Ryan Durkin |
Title: | Authorized Signatory |
HSBC BANK USA, NATIONAL ASSOCIATION | |
By: | /s/ Johann Matthai |
Name: | Johann Matthai |
Title: | Director |
LLOYDS BANK CORPORATE MARKETS PLC | |
By: | /s/ Kamala Basdeo |
Name: | Kamala Basdeo |
Title: | Assistant Manager |
By: | /s/ Tina Wong |
Name: | Tina Wong |
Title: | Assistant Manager |
MORGAN STANLEY BANK, N.A. | |
By: | /s/ Michael King |
Name: | Michael King |
Title: | Authorized Signatory |
STATE STREET BANK AND TRUST COMPANY | |
By: | /s/ Busola Laguda |
Name: | Busola Laguda |
Title: | Vice President |
U.S. BANK NATIONAL ASSOCIATION | |
By: | /s/ Ferris Joanis |
Name: | Ferris Joanis |
Title: | Vice President |
Schedule 1 | ||
LENDERS’ COMMITMENTS | ||
The Charles Schwab Corporation $750,000,000 Credit Agreement (364-Day Commitment) dated | ||
as of May 31, 2019. | ||
Lender Commitment Amount | ||
1. Citibank, N.A. | 1. | $75,000,000 |
2. JPMorgan Chase Bank, N.A. | 2. | $75,000,000 |
3. Bank of America, N.A. | 3. | $67,500,000 |
4. Credit Suisse AG, Cayman Islands Branch | 4. | $67,500,000 |
5. The Bank of New York Mellon | 5. | $67,500,000 |
6. Wells Fargo Bank, National Association | 6. | $67,500,000 |
7. Goldman Sachs Bank USA | 7. | $55,000,000 |
8. HSBC Bank USA, National Association | 8. | $55,000,000 |
9. Lloyds Bank Corporate Markets Plc | 9. | $55,000,000 |
10. Morgan Stanley Bank, N.A. | 10. | $55,000,000 |
11. State Street Bank and Trust Company | 11. | $55,000,000 |
12. U.S. Bank National Association | 12. | $55,000,000 |
Total | $750,000,000 |
By: | |
Name: | |
Title: |
If to the Borrower: | |
If by U.S. mail: | The Charles Schwab Corporation |
Treasury Department | |
Attn: William F. Quinn or Successor | |
211 Main Street (Mail Stop SF211MN-03-309) | |
San Francisco, CA 94105 | |
If by hand delivery | |
(including courier | |
and overnight | |
messenger service): | The Charles Schwab Corporation |
Treasury Department | |
Attn: William F. Quinn or Successor | |
211 Main Street, 3rd Floor | |
San Francisco, CA 94105 | |
Telephone: | (415) 667-7337 |
Facsimile: | (415) 667-8565 |
Credit Contact | Operations Contact | Lending Office | Payment Instructions |
Bank of America, N.A. One Bryant Park, 18th Floor New York, NY 10036 Attention: Maryanne Fitzmaurice Director (646) 556-0343 Fax: 704 683-9184 | Bank of America, N.A. 901 S. Main St. Dallas, TX 75202 Attention: Tammi Reddy (415) 436-3685 ext. 65843 Fax: (312) 453-5129 | Bank of America, N.A. 2001 Clayton Road Concord, California 94520 | Bank of America, N.A. ABA #: 026009593 Charlotte, NC Acct #: 4426457864 Attention: Bilateral Clearing Account Ref: Charles Schwab Corporation |
The Bank of New York Mellon BNY Mellon Center 500 Grant Street Pittsburgh, PA 15258 Attention: Amanda Rae Stone Vice President (412) 234-1105 Fax: (412) 234-6112 | The Bank of New York Mellon 6023 Airport Road Oriskany, NY 13424 Attention: Mikila Richards (315) 765-4783 Fax: (315) 765-4783 | The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 | The Bank of New York ABA #: 021-000-018 Acct #: GLA111-231 Acct name: Broker Services Ref: Charles Schwab Corporation |
Credit Contact | Operations Contact | Lending Office | Payment Instructions |
Citibank, N.A. 388 Greenwich Street New York, NY 10013 Attention: Dane Graham Director (212) 816-8219 Fax: (212) 816-1212 | Citibank, N.A. 1615 Brett Road, Bldg #3 New Castle, DE 19720 Attention: Investor Relations (302) 894-6010 Fax: (212) 994-0961 | Citibank, N.A. 399 Park Avenue New York, NY 10043 | Citibank NA ABA #: 021-000-089 New York, NY Acct #: 36852248 Acct Name: Agency/Medium Term Finance Ref: The Charles Schwab Corporation |
Credit Suisse AG, Cayman Islands Branch Eleven Madison Avenue New York, NY 10010 Attention: Doreen Barr / Michael Del Genio Phone: (212) 325-9914 / (212) 325-7688 Fax: (212) 325-8615 / | Credit Suisse AG, Cayman Islands Branch 7033 Louis Stephens Drive PO Box 110047 Research Triangle Park, NC 27709 Attention: Fay Rollins Loan Closers / Tedrick Kelly Administrator Phone: (212) 325-9041 / (919) 994-6087 Fax: (866) 469-3871 | Credit Suisse AG, Cayman Islands Branch Eleven Madison Avenue New York, NY 10010 | Credit Suisse Bank Name: The Bank of New York ABA #: 021-000-018 New York, NY Acct #: 890-0492-627 Acct Name: CS Agency Cayman Ref: The Charles Schwab Corporation |
Goldman Sachs Bank USA Michelle Latzoni c/o Goldman, Sachs & Co. 30 Hudson Street, 5th Floor Jersey City, NJ 07302 Email: gsd.link@gs.com Tel: (212)934-3921 | Goldman Sachs Bank USA c/o Goldman, Sachs & Co. 30 Hudson Street, 5th Floor Jersey City, NJ 07302 gs-sbd-admin-contacts@ny.email.gs.com Tel: (212)902-1099 Fax: (917)977-3966 | Goldman Sachs Bank USA 200 West Street New York, NY 10282 | Goldman Sachs Bank USA Swift Code: CITIUS33 Aba: 021000089 Bank Name: Citibank N.A. City: New York A/C #: 30627664 Entity Name: Goldman Sachs Bank USA |
HSBC Bank USA, National Association 452 Fifth Avenue New York, NY 10018 Attention: Jeffrey Roth / Stephen J. Contino Phone: (212) 525-4341 / (212) 525- 7054 | HSBC Bank USA, New York 452 Fifth Avenue New York, NY 10018 Attention: CTLA Lan Admin Phone: (212) 525-1529 / Fax: (847) 793- 3415 | HSBC Bank USA, National Association 452 fifth Avenue New York, NY 10018 | HSBC Bank USA, National Association ABA #: 021-000-1088 Acct #: 713011777 Acct Name: NY Loan Agency Attn: CTLA Laon Admin Ref: The Charles Schwab Corporation |
JPMorgan Chase Bank, N.A. 383 Madison Avenue, Floor 23 New York, NY 10179 Attention: Victoria Teterceva, Vice President Phone: (212) 270-2372 | JPMorgan Chase Bank, N.A. JPM-Bangalore Loan Operations Prestige Tech Park, Floor 4 Sarjapur outer Ring Rd, Vathur Hobli Bangalore, India 560 087 Phone: 91 80 67905014 ext 35014 Fax: (201) 244-3885 | JPMorgan Chase Bank, N.A. 500 Stanton Christiana Road, Ops 2, Floor 3 Newark, DE 19713-2107 | JPMorgan Chase Bank, N.A. New York, NY ABA #: 021000021 Acct #: 9008113381H2832 Acct Name: LS2 Incoming Account Attn: Loan & Agency Ref: Charles Schwab |
Lloyds Bank Corporate Markets Plc 1095 Avenue of the Americas, 34th Floor New York , NY 10036 Attention: Sammy Asoli Vice President (212) 284-0418 Fax: (212) 930-5098 | Lloyds Bank Corporate Markets Plc 1095 Avenue of the Americas, 34th Floor New York , NY 10036 Attention: Indira Girisankar / Ramona Rojas (212) 930-5051/8978 Fax: (212) 930-5098 | Lloyds Bank Corporate Markets Plc 1095 Avenue of the Americas, 34th Floor New York , NY 10036 | Bank of America International, New York New York, NY ABA #: 026-009-593 Acct #: 655-010-1938 Acct Name: Lloyds Bank Corporate Markets Plc, New York Ref: Charles Schwab |
Credit Contact | Operations Contact | Lending Office | Payment Instructions |
Morgan Stanley Bank, N.A. 750 Seventh Avenue New York, NY 10019 Attention: Joan Cho (212) 762-1190 | Morgan Stanley Loan Servicing 1300 Thames Street Wharf, 4th Floor Baltimore, MD 21231 443-627-4355 Fax: 718-233-2140 | Morgan Stanley Bank, N.A. One Utah Center 201 South Main Street, 5th Floor Salt Lake, City, UT 84111 | MS BANK NA USD Citibank, N.A. New York, NY 10043 ABA #: 021-000-089 Acct #: 3044-0947 Acct Name: Morgan Stanley Bank, N.A. Ref: The Charles Schwab Corporation Attn: Morgan Stanley Loan Servicing |
State Street Bank and Trust Company 1 Iron Street, M/S CCB 0900 Boston, MA 02210 Attention: Andrei Bourdine Vice President / Deirdre Holland Managing Director (617) 662-8827 / 8608 | State Street Bank and Trust Company 1 Iron Street, M/S CCB 0901 Boston, MA 02210 Attention: Peter Connolly (617) 662-8588 Fax: (617) 988-6677 | State Street Bank and Trust Company 1 Iron Street, M/S CCB 0900 Boston, MA 02210 | State Street Bank and Trust Company, Boston, MA ABA#: 011-000-028 Acct #: 0006-332-1 Acct. Name: IS Loan Operations / CSU Internal Ref: The Charles Schwab Corporation Attn: Peter Connolly, ext 617-662- 8588 |
U.S. Bank National Association 461 Fifth Avenue, 7th Floor New York, NY 10017-6234 Attention: Angela (Zhanglan) Cheng, Portfolio Manager (917) 326-3101 Angela.cheng@usbank.com | U.S. Bank National Association 400 City Center Oshkosh, WI 54901 CLS Syndication Services Team – East (920) 237-7601 Fax: (920) 237-7993 | U.S. Bank National Association 800 Nicollet Mall Minneapolis, MN 55402 | U.S. Bank National Association ABA#: 091000022 Acct. #: 0068542160600 Account Name: CLS Syndication Services GL Acct. Ref.: Charles Schwab Corporation (Type of pymt) Attn: CLS Syndication Team |
Wells Fargo Bank, National Association 301 S. College Street, 11th Floor MAC D1053-115 Charlotte, NC 28202 Attention: James Mastroianna Vice President Portfolio Manager Financial Institutions Group (612)-67-8120 james.a.mastroianna@wellsfarg o.com | Wells Fargo Bank, National Association 1700 Lincoln Street, 5th Floor MAC C7300-059 Denver, CO 80203-4500 Attention: Dorothy Cardenas Loan Servicing Spec. (303) 863-5917 Fax: (303) 863-2729 | Wells Fargo Bank, National Association 90 South 7th Street, 7th Floor MAC N9305-075 Minneapolis, MN 55402-3903 | Wells Fargo Bank, National Association ABA #: 121000248 Acct #: 00029694050720 Account Name: WLS Denver Attn: Dorothy Cardenas Ref: Charles Schwab |
The Charles Schwab Corporation | |
By: | |
Name: | |
Title: |
Date Made, Continued, Converted, or Paid | Type of Loan | Amount of Loan | Amount of Principal Continued, Converted, or Paid | Unpaid Principal Balance of Revolving Note | Name of Person Making Notation |
The Charles Schwab Corporation | |
By: | |
Name: | |
Title: |
Date Made, Continued, Converted, or Paid | Type of Loan | Amount of Loan | Term Loan Maturity Date | Amount of Principal Continued, Converted, or Paid | Unpaid Principal Balance of Term Note | Name of Person Making Notation |
(a) | Amount of Revolving [or Term Loan]:______________________. |
(b) | Borrowing Date of Revolving [or Term Loan]:_________________. |
(c) | [If a Revolving Loan] Type of Revolving Loan (check one only): |
(d) | [If a Term Loan] Type of Term Loan (check one only): |
(e) | [If a Term Loan] Maturity Date of Term Loan:_________________. |
4. | This Borrowing Advice is executed on______________by the Borrower. |
BORROWER: | |
THE CHARLES SCHWAB CORPORATION, a Delaware Corporation | |
By: | |
Name: | |
Title: |
(a) | (check, as applicable) |
(b) | The aggregate outstanding principal balance of the above Loan is $_________________. |
(c) | As applicable, the last day of the current Interest Period for such Loan is __________________. |
(d) | The principal amount of such Loan to be [converted or continued] is $_________________. |
(e) | Such principal amount should be converted/continued into the following type of Loan: |
(f) | The requested effective date of the [conversion/continuation] of such Loan is _____________________. |
(g) | As applicable, the requested Interest Period applicable to the new Loan is _____________________. |
THE CHARLES SCHWAB CORPORATION | |
By: | |
Name: | |
Title: | |
[must be signed by an Authorized Officer] |
BORROWER: | |
THE CHARLES SCHWAB CORPORATION, | |
a Delaware Corporation | |
By: | |
Name: | |
Title: |
By: | |
Name: | |
Title: |
Re: | Credit Agreement (364-Day Commitment), dated May 31, 2019, among |
The Charles Schwab Corporation, Citibank, N.A., as Agent |
d. | We express no opinion as to compliance with the usury laws of any jurisdiction. |
Very truly yours, |
ARNOLD & PORTER KAYE SCHOLER LLP |
By: _______________________________ |
(a) | the aggregate amount of the Assignor’s Commitment is $_______________. |
(b) | the aggregate principal amount of its outstanding Loans is $_____________. |
(a) | Credit Contact: | |
Assignee name: | ||
Address: | ||
Attention: | ||
Telephone: | ||
Telecopier: |
(b) | Operations Contact: | |
Assignee name: | ||
Address: | ||
Attention: | ||
Telephone: | ||
Telecopier: |
(c) | Lending Office: | |
Assignee name: | ||
Address: | ||
(d) | Payment Instructions: | |
Assignee name: | ||
ABA No.: | ||
Account No.: | ||
Attention: | ||
Reference: |
Very truly yours, | |
[ASSIGNOR] | |
By: | |
Name: | |
Title: | |
[ASSIGNEE] | |
By: | |
Name: | |
Title: |
By: | |
Name: | |
Title: |
By: | |
Name: | |
Title: |
Name of Recipient: | <first_name> <last_name> |
Total Number of Restricted Stock Units Granted: | <shares_awarded> |
Grant Date: | <award_date> |
Vesting Schedule: | So long as you remain in service in good standing and subject to the terms of the Restricted Stock Unit Agreement, the Restricted Stock Units subject to this grant will become vested and distributable on the following dates and in the following amounts, subject to the restrictions below: Number of Restricted Stock Units on Vesting Date: <vesting_schedule> Restricted Stock Units subject to this grant will not vest upon retirement. |
Payment for Units | No payment is required for the Restricted Stock Units that you are receiving. Restricted Stock Units are an unfunded and unsecured obligation of The Charles Schwab Corporation (“Schwab”). |
Vesting | Subject to the provisions of this Restricted Stock Unit Agreement (“Agreement”), a Restricted Stock Unit becomes vested and distributable as of the earliest of the following: (1) The applicable Vesting Date for the Restricted Stock Unit indicated in the Notice of Restricted Stock Unit Grant. (2) Your death. (3) Your disability. (4) Your separation from service due to a severance eligible termination with vesting only to the extent provided for in The Charles Schwab Severance Pay Plan (or any successor plan)). (5) A change in control. |
Unvested units will be considered “Restricted Stock Units.” If your service terminates for any reason, then your Restricted Stock Units will be forfeited to the extent that they have not vested on or before the termination date and do not vest as a result of the termination. This means that the Restricted Stock Units will immediately revert to Schwab. You will receive no payment for Restricted Stock Units that are forfeited. Schwab determines when your service terminates for this purpose. For all purposes of this Agreement, “service” means continuous employment as a common-law employee of Schwab or a parent corporation or subsidiary of Schwab, and “subsidiary” means a subsidiary corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”). | |
Retirement | Restricted Stock Units subject to this grant will not vest upon retirement. |
Definition of Fair Market Value | “Fair market value” means the average of the high and low price of a Share (as defined below) as reported on the New York Stock Exchange on the applicable determination date. |
Definition of Disability | For all purposes of this Agreement, "disability" means that you have a disability that qualifies as such under section 409A of the Code and due to which you have been determined to be eligible for benefits under Schwab’s long-term disability plan or if you are not covered by Schwab’s long-term disability plan, you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which has lasted, or can be expected to last, for a continuous period of not less than 12 months or which can be expected to result in death as determined by Schwab in its sole discretion. |
Definition of Severance Eligible Termination | For all purposes of this Agreement, "severance eligible termination" means a separation from service entitling you to severance benefits when you have signed your Severance Agreement under The Charles Schwab Severance Pay Plan (or any successor plan). |
Definition of Change in Control | For all purposes of this Agreement, "change in control" means an event that qualifies as a change in control event under section 409A of the Code and as a change in control as defined in [The Charles Schwab Corporation 2013 Stock Incentive Plan] (the “Plan”). |
Definition of Separation From Service | For all purposes of this Agreement, "separation from service" means a separation from service as defined under section 409A of the Code. |
Payment of Shares | Any vested Restricted Stock Units will be paid in shares of common stock of Schwab (“Shares”) as provided herein. Shares that have become vested and distributable under this Agreement shall be distributed as follows: (1) Shares that vest and become distributable on a Vesting Date shall be distributed within 30 days of the Vesting Date. (2) Shares that vest and become distributable on death, disability or a change in control, shall be distributable within 90 days of such event. (3) Shares that vest and become distributable on a separation from service due to a severance eligible termination shall be distributed within 90 days of the separation from service. Generally, the distribution date shall be the "termination date" specified in the notice under The |
Charles Schwab Severance Pay Plan. Notwithstanding the foregoing, if at the time of your separation from service, you are a “specified employee”, you will receive your Shares six months after your separation from service. "Specified Employee" means a "specified employee" within the meaning of section 409A of the Code and any regulatory guidance promulgated thereunder, provided that in determining the compensation of individuals for this purpose, the definition of compensation in Treas. Reg. § 1.415(c)-2(d)(2) shall be used. | |
Restrictions on Restricted Stock Units | You may not sell, transfer, pledge, or otherwise dispose of any Restricted Stock Units without Schwab’s written consent. Schwab will deliver Shares to you only after the Restricted Stock Units vest and after all other terms and conditions in this Agreement have been satisfied. Schwab may, in its sole discretion, allow you to transfer these Restricted Stock Units under a domestic relations order in settlement of marital or domestic property rights. In order to transfer these Restricted Stock Units, you and the transferee(s) must follow the procedures prescribed by Schwab, and the transferee(s) must follow the terms of this Agreement. |
Delivery of Shares After Death | In the event that Shares are distributable upon your death, the Shares will be delivered to your beneficiary or beneficiaries. You may designate one or more beneficiaries by filing a beneficiary designation form with Schwab. You may change your beneficiary designation by filing a new form with Schwab at any time prior to your death. If you do not designate a beneficiary or if your designated beneficiary predeceases you, then your Shares will be delivered to your estate. |
Cancellation of Restricted Stock Units | To the fullest extent permitted by applicable laws, these Restricted Stock Units will immediately be cancelled and will expire in the event that Schwab terminates your employment on account of conduct contrary to the best interests of Schwab, including, without limitation, conduct constituting a violation of law or Schwab policy, fraud, theft, conflict of interest, dishonesty or harassment. The determination whether your employment has been terminated on account of conduct inimical to the best interests of Schwab shall be made by Schwab in its sole discretion, and will be entitled to deference upon any review. |
Restrictions on Resale | You agree not to sell any Shares at a time when applicable laws, Schwab’s policies, or an agreement between Schwab and its underwriters prohibit a sale. This restriction will apply as long as your service continues and for such period of time after the termination of your service as Schwab may specify. |
Withholding Taxes | Shares will not be distributed unless you have made acceptable arrangements to pay any applicable withholding taxes that may be due as a result of the vesting and or the distribution of the Shares. These arrangements may include withholding Shares. Schwab may withhold the number of whole Shares, valued at the fair market value on the applicable date, required to satisfy such applicable withholding taxes. Schwab will round up to the next whole Share to cover the applicable withholding taxes, and any amounts in excess of the applicable withholding taxes resulting from rounding up to the next whole Share will be added to your federal income tax withholdings. In the event you do not elect to pay applicable withholding taxes in cash, Schwab shall withhold Shares as noted above. While Schwab will withhold to satisfy applicable withholding taxes, you acknowledge that, regardless of any action taken by Schwab, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you, is and remains your responsibility and may exceed the amount, if any, actually withheld by Schwab. Applicable withholding taxes due on the distribution of Shares subject to this award following termination of employment will be withheld as noted above, unless you have made acceptable arrangements to pay any applicable withholding taxes in cash. If you elect to pay applicable withholding taxes due upon the distribution of Shares in cash, you are responsible for having sufficient funds in your Schwab brokerage account to cover the applicable withholding taxes at the time they are due. |
No Stockholder Rights | Your Restricted Stock Units carry no voting or other stockholder rights. You have no rights as a Schwab stockholder until your Restricted Stock Units are settled by issuing Shares. |
Contribution of Par Value | On your behalf, Schwab will contribute to its capital an amount equal to the par value of the Shares issued to you. |
Dividend Equivalent Rights | If Schwab pays cash dividends on Shares, you will receive cash equal to the dividend per Share multiplied by the number |
of unvested Restricted Stock Units. Each such payment shall be made as soon as practicable following the payment of the actual dividend, but in no event beyond March 15 of the year following the year the actual dividend is paid. | |
No Right to Remain Employee | Nothing in this Agreement will be construed as giving you the right to be retained as an employee, contingent worker, or director of Schwab and its subsidiaries for any specific duration or at all. |
Limitation on Payments | If a payment from the Plan would constitute an excess parachute payment under section 280G of the Code or if there have been certain securities law violations, then your grant may be reduced or forfeited and you may be required to disgorge any profit that you have realized from your grant. If a disqualified individual receives a payment or transfer under the Plan that would constitute an excess parachute payment under section 280G of the Code, such payment will be reduced, as described below. Generally, someone is a “disqualified individual” under section 280G if he or she is (a) an officer of Schwab, (b) a member of the group consisting of the highest paid 1% of the employees of Schwab or, if less, the highest paid 250 employees of Schwab, or (c) a 1% stockholder of Schwab. For purposes of this section on “Limitation on Payments,” the term “Schwab" will include affiliated corporations to the extent determined by the independent auditors most recently selected by the Board of Directors (the “Auditors”) in accordance with section 280G(d)(5) of the Code. In the event that the Auditors determine that any payment or transfer in the nature of compensation to or for your benefit, whether paid or payable (or transferred or transferable) pursuant to the terms of the Plan or otherwise (a “Payment”), would be nondeductible for federal income tax purposes because of the provisions concerning “excess parachute payments” in section 280G of the Code, then the aggregate present value of all Payments will be reduced (but not below zero) to the Reduced Amount (as defined below); provided, however, that the Compensation Committee (the “Compensation Committee”) of the Board of Directors may specify in writing that the grant will not be so reduced and will not be subject to reduction under this section. For this purpose, the “Reduced Amount” will be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by Schwab because of section 280G of |
the Code. If the Auditors determine that any Payment would be nondeductible because of section 280G of the Code, then Schwab will promptly give you notice to that effect and a copy of the detailed calculation of the Reduced Amount. The Auditors will determine which and how much of the Payments will be eliminated or reduced (such that the aggregate present value of the Payments equals the Reduced Amount and is consistent with any mandatory eliminations or reductions that apply under other agreements or the Plan). Schwab will notify you promptly of the Auditor's determination. Present value will be determined in accordance with section 280G(d)(4) of the Code. The Auditors’ determinations will be binding upon you and Schwab and will be made within 60 days of the date when a Payment becomes payable or transferable. As a result of uncertainty in the application of section 280G of the Code at the time of an initial determination by the Auditors, it is possible that Payments will have been made by Schwab that should not have been made (an “Overpayment”) or that additional Payments that will not have been made by Schwab could have been made (an “Underpayment”) consistent in each case with the calculation of the Reduced Amount. In the event the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against you or Schwab that the Auditors believe has a high probability of success, determine that an Overpayment has been made, the amount of such Overpayment will be paid by you to Schwab on demand, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. However, no amount will be payable by you to Schwab if and to the extent that such payment would not reduce the amount that is subject to taxation under section 4999 of the Code. In the event the Auditors determine that an Underpayment has occurred, such Underpayment will promptly be paid or transferred by Schwab to or for your benefit, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code, provided that no such Underpayment related to Shares distributable under this Agreement shall be paid beyond the deadline for making such payments under section 409A of the Code. | |
Plan Administration | The Plan administrator has discretionary authority to make all determinations related to this grant and to construe the terms of the Plan, the Notice of Restricted Stock Unit Grant and this Agreement. The Plan administrator’s determinations are conclusive and binding on all persons, and they are entitled to |
deference upon any review. | |
Adjustments | In the event of a stock split, a stock dividend or a similar change in the Shares, the number of Restricted Stock Units that remain subject to forfeiture will be adjusted accordingly. |
Severability | In the event that any provision of this Agreement is held invalid or unenforceable, the provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement. |
Applicable Law | This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions), as such laws are applied to contracts entered into and performed in Delaware. |
The Plan and Other Agreements | The text of the Plan is incorporated in this Agreement by reference. This Agreement (including the Additional Terms and Conditions for Non-U.S. Recipients and the Country-Specific Provisions), the Notice of Restricted Stock Unit Grant, and the Plan constitute the entire understanding between you and Schwab regarding this grant. Any prior agreements, commitments or negotiations concerning this grant are superseded. This Agreement may be amended only by another written agreement, signed by both parties and approved by the Compensation Committee. If there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control. |
(1) | the Plan is established voluntarily by Schwab, it is discretionary in nature and it may be modified, amended, suspended or terminated by Schwab at any time, to the extent permitted by the Plan; |
(2) | the grant of the Restricted Stock Units is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past; |
(3) | all decisions with respect to future Restricted Stock Units or other grants, if any, will be at the sole discretion of Schwab; |
(4) | you are voluntarily participating in the Plan; |
(5) | the Restricted Stock Units, the Shares subject to the Restricted Stock Units, and the income and value of same, are not intended to replace any pension rights or compensation; |
(6) | the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income and value of same, are not part of normal or expected compensation for any purpose, including calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits or similar mandatory payments; |
(7) | unless otherwise agreed with Schwab, the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income and value of same, are not granted as consideration for, or in connection with, the service you may provide as a director of a subsidiary of Schwab; |
(8) | the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty; |
(9) | for purposes of the Restricted Stock Units, your service will be considered terminated as of the date you are no longer actively providing services to Schwab and its subsidiaries (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by Schwab, your right to vest in the Restricted Stock Units under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., your period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in |
(10) | unless otherwise provided in the Plan or by Schwab in its discretion, the Restricted Stock Units and the benefits evidenced by this Agreement do not create any entitlement to have the Restricted Stock Units or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares; and |
(11) | neither Schwab, its subsidiaries nor your Employer shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Restricted Stock Units or of any amounts due to you pursuant to the settlement of the Restricted Stock Units or the subsequent sale of any Shares acquired upon settlement. |
(1) | Declaration of Consent. You hereby agree with the data processing practices described in this Agreement and consent to the collection, processing and use, in electronic or other form, of your personal data as described herein and the transfer of such personal data to the recipients mentioned below, including recipients located in countries which may not have a similar level of protection from the perspective of your country’s data protection laws. |
(2) | Data Collection and Usage. Schwab and your Employer will collect, process and use certain personal information about you, including, but not limited to, your name, home address and telephone number, email address, date of birth, social insurance, passport or other identification number, salary, nationality, job title, any Shares or directorships held in Schwab, details of all Restricted Stock Units or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in your favor (“Data”), for the purposes of implementing, administering and managing the Plan. The legal basis, where required, for the processing of Data is your consent. Where required under applicable law, Data may also be disclosed to certain securities or other regulatory authorities where Schwab’s securities are listed or traded or regulatory filings are made and the legal basis, where required, for such disclosure are the applicable laws. |
(3) | Stock Plan Administration Service Providers. Schwab transfers Data to certain of its subsidiaries providing stock plan and broker services, or such other third party stock plan service provider as may be selected by Schwab in the future, which is assisting Schwab with the implementation, administration and management of the Plan. You may be asked to agree on separate terms and data processing practices, with such agreement being a condition of the ability to participate in the Plan. |
(4) | Other Service Provider Data Recipients. Schwab also may transfer Data to other third party service providers, if necessary to ensure compliance with applicable tax, exchange control, securities and labor law. Such third party service providers may include Schwab’s legal counsel as well as Schwab’s auditor, accountant, or other third party vendor (currently Deloitte & Touche LLP). Wherever possible, Schwab |
(5) | International Data Transfers. Schwab and its other service providers described above under (4) are located in the United States. The United States may have different data privacy laws and protections than your country. For example, the European Commission has issued a limited adequacy finding with respect to the United States that applies only to the extent companies register for the EU-U.S. Privacy Shield program, which is open to companies subject to Federal Trade Commission jurisdiction. Schwab’s legal basis, where required, for the transfer of Data is your consent. |
(6) | Data Retention. Schwab will hold and use the Data only as long as is necessary to implement, administer and manage your participation in the Plan, or as required to comply with legal or regulatory obligations, including under tax and securities laws. When Schwab no longer needs the Data, Schwab will remove it from its systems. If Schwab keeps Data longer, it would be to satisfy legal or regulatory obligations and Schwab’s legal basis would be relevant laws or regulations. |
(7) | Data Subject Rights. You understand that data subject rights vary depending on applicable law and that, depending on where you are based and subject to the conditions set out under applicable law, you may have, without limitation, the rights to (i) request access or copies of Data that Schwab processes, (ii) rectify or supplement Data that is incorrect, incomplete or out-of-date in light of the purposes underlying the processing, (iii) delete Data, (iv) restrict processing of Data, (v) portability of Data, (vi) lodge complaints with competent authorities in your jurisdiction and/or (vii) receive a list with the names and addresses of any potential recipients of Data. To receive clarification regarding these rights or to exercise these rights, you understand that you can contact your local human resources representative. |
(8) | Voluntariness and Consequences of Consent Denial or Withdrawal. Participation in the Plan is voluntary and you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your consent, your employment status or service with your Employer will not be affected; the only consequence of refusing or withdrawing your consent is that Schwab would not be able to grant you Restricted Stock Units or other equity awards or administer or maintain such awards. |
(9) | Declaration of Consent. By accepting the Restricted Stock Units and indicating consent via Schwab’s online acceptance procedure, you are declaring that you agree with the data processing practices described herein and consent to the collection, processing and use of Data by Schwab and the transfer of Data to the recipients mentioned above, including recipients located in countries which do not adduce an adequate level of protection from a European (or other non-U.S.) data protection law perspective, for the purposes described above. |
(10) | Alternative Basis for Data Processing and Transfer. You understand that Schwab may rely on a different legal basis for the processing or transfer of Data in the future |
1. | I have reviewed this Quarterly Report on Form 10-Q of The Charles Schwab Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 7, 2019 | /s/ Walter W. Bettinger II | |
Walter W. Bettinger II | |||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of The Charles Schwab Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 7, 2019 | /s/ Peter Crawford | |
Peter Crawford | |||
Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
/s/ Walter W. Bettinger II | Date: | August 7, 2019 | |
Walter W. Bettinger II | |||
President and Chief Executive Officer |
/s/ Peter Crawford | Date: | August 7, 2019 | |
Peter Crawford | |||
Executive Vice President and Chief Financial Officer |
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|||||||
Net Revenues | ||||||||||
Interest revenue | $ 1,927 | $ 1,590 | $ 3,925 | $ 3,011 | ||||||
Interest expense | (318) | (183) | (635) | (341) | ||||||
Net interest revenue | 1,609 | 1,407 | 3,290 | 2,670 | ||||||
Other | 112 | 85 | 214 | 168 | ||||||
Total net revenues | 2,681 | 2,486 | 5,404 | 4,884 | ||||||
Expenses Excluding Interest | ||||||||||
Compensation and benefits | 807 | 745 | 1,657 | 1,515 | ||||||
Professional services | 178 | 156 | 348 | 312 | ||||||
Occupancy and equipment | 133 | 122 | 264 | 244 | ||||||
Advertising and market development | 77 | 77 | 146 | 150 | ||||||
Communications | 62 | 58 | 124 | 120 | ||||||
Depreciation and amortization | 84 | 75 | 167 | 148 | ||||||
Regulatory fees and assessments | 30 | 50 | 62 | 101 | ||||||
Other | 74 | 72 | 136 | 161 | ||||||
Total expenses excluding interest | 1,445 | 1,355 | 2,904 | 2,751 | ||||||
Income before taxes on income | 1,236 | 1,131 | 2,500 | 2,133 | ||||||
Taxes on income | 299 | 265 | 599 | 484 | ||||||
Net Income | 937 | 866 | 1,901 | 1,649 | ||||||
Preferred stock dividends and other | 50 | [1] | 53 | [1] | 89 | 90 | ||||
Net Income Available to Common Stockholders | $ 887 | $ 813 | $ 1,812 | $ 1,559 | ||||||
Weighted-Average Common Shares Outstanding: | ||||||||||
Basic (shares) | 1,328 | 1,350 | 1,331 | 1,349 | ||||||
Diluted (shares) | 1,337 | [2] | 1,364 | [2] | 1,340 | 1,363 | ||||
Earnings Per Common Shares Outstanding: | ||||||||||
Basic (USD per share) | $ 0.67 | $ 0.60 | $ 1.36 | $ 1.16 | ||||||
Diluted (USD per share) | $ 0.66 | [2] | $ 0.60 | [2] | $ 1.35 | $ 1.14 | ||||
Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS (in shares) | 16 | 10 | 17 | 12 | ||||||
Asset management and administration fees [Member] | ||||||||||
Net Revenues | ||||||||||
Asset management and administration fees and Trading revenue | $ 786 | $ 814 | $ 1,541 | $ 1,665 | ||||||
Trading revenue [Member] | ||||||||||
Net Revenues | ||||||||||
Asset management and administration fees and Trading revenue | $ 174 | $ 180 | $ 359 | $ 381 | ||||||
|
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 937 | $ 866 | $ 1,901 | $ 1,649 |
Change in net unrealized gain (loss) on available for sale securities: | ||||
Net unrealized gain (loss) | 218 | (33) | 445 | (141) |
Other reclassifications included in other revenue | (3) | 0 | (4) | 0 |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 8 | 9 | 20 | 18 |
Other comprehensive income (loss), before tax | 223 | (24) | 461 | (123) |
Income tax effect | (53) | 6 | (110) | 30 |
Other comprehensive income (loss), net of tax | 170 | (18) | 351 | (93) |
Comprehensive Income | $ 1,107 | $ 848 | $ 2,252 | $ 1,556 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 8,134 | $ 7,195 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 2,850 | $ 2,850 |
Common stock, shares authorized (shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (shares) | 1,487,543,446 | 1,487,543,446 |
Treasury stock (shares) | 179,039,218 | 155,116,695 |
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions |
Total |
Preferred Stock [Member] |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Treasury Stock, at cost [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
---|---|---|---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity | |||||||
Adoption of accounting standards | $ 167 | $ 200 | $ (33) | ||||
Beginning balance at Dec. 31, 2017 | 18,525 | $ 2,793 | $ 15 | $ 4,353 | 14,408 | $ (2,892) | (152) |
Beginning balance (shares) at Dec. 31, 2017 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,649 | 1,649 | |||||
Other comprehensive income (loss), net of tax | (93) | (93) | |||||
Dividends declared on preferred stock | (83) | (83) | |||||
Dividends declared on common stock | (271) | (271) | |||||
Stock option exercises and other | 99 | (8) | 107 | ||||
Share-based compensation | 78 | 78 | |||||
Other | 26 | 24 | 2 | ||||
Ending balance (shares) at Jun. 30, 2018 | 1,488 | ||||||
Ending balance at Jun. 30, 2018 | 20,097 | 2,793 | $ 15 | 4,447 | 15,903 | (2,783) | (278) |
Beginning balance at Mar. 31, 2018 | 19,330 | 2,793 | $ 15 | 4,397 | 15,222 | (2,837) | (260) |
Beginning balance (shares) at Mar. 31, 2018 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 866 | 866 | |||||
Other comprehensive income (loss), net of tax | (18) | (18) | |||||
Dividends declared on preferred stock | (49) | (49) | |||||
Dividends declared on common stock | (136) | (136) | |||||
Stock option exercises and other | 50 | 4 | 46 | ||||
Share-based compensation | 31 | 31 | |||||
Other | 23 | 15 | 8 | ||||
Ending balance (shares) at Jun. 30, 2018 | 1,488 | ||||||
Ending balance at Jun. 30, 2018 | 20,097 | 2,793 | $ 15 | 4,447 | 15,903 | (2,783) | (278) |
Beginning balance at Dec. 31, 2018 | 20,670 | 2,793 | $ 15 | 4,499 | 17,329 | (3,714) | (252) |
Beginning balance (shares) at Dec. 31, 2018 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,901 | 1,901 | |||||
Other comprehensive income (loss), net of tax | 351 | 351 | |||||
Dividends declared on preferred stock | (81) | (81) | |||||
Dividends declared on common stock | (456) | (456) | |||||
Repurchase of common stock | (1,220) | (1,220) | |||||
Stock option exercises and other | 48 | (13) | 61 | ||||
Share-based compensation | 88 | 88 | |||||
Other | 19 | 25 | (13) | 7 | |||
Ending balance (shares) at Jun. 30, 2019 | 1,488 | ||||||
Ending balance at Jun. 30, 2019 | 21,320 | 2,793 | $ 15 | 4,599 | 18,680 | (4,866) | 99 |
Beginning balance at Mar. 31, 2019 | 21,625 | 2,793 | $ 15 | 4,548 | 18,017 | (3,677) | (71) |
Beginning balance (shares) at Mar. 31, 2019 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 937 | 937 | |||||
Other comprehensive income (loss), net of tax | 170 | 170 | |||||
Dividends declared on preferred stock | (47) | (47) | |||||
Dividends declared on common stock | (228) | (228) | |||||
Repurchase of common stock | (1,220) | (1,220) | |||||
Stock option exercises and other | 22 | 1 | 21 | ||||
Share-based compensation | 35 | 35 | |||||
Other | 26 | 15 | 1 | 10 | |||
Ending balance (shares) at Jun. 30, 2019 | 1,488 | ||||||
Ending balance at Jun. 30, 2019 | $ 21,320 | $ 2,793 | $ 15 | $ 4,599 | $ 18,680 | $ (4,866) | $ 99 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock (USD per share) | $ 0.17 | $ 0.10 | $ 0.34 | $ 0.20 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions |
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
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Cash Flows from Operating Activities | |||||||||
Net income | $ 1,901 | $ 1,649 | |||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||
Share-based compensation | 95 | 83 | |||||||
Depreciation and amortization | 167 | 148 | |||||||
Premium amortization, net, on available for sale and held to maturity securities | 159 | 187 | |||||||
Other | 65 | 77 | |||||||
Net change in: | |||||||||
Investments segregated and on deposit for regulatory purposes | (889) | 4,852 | |||||||
Receivables from brokers, dealers, and clearing organizations | 96 | (375) | |||||||
Receivables from brokerage clients | 219 | (1,796) | |||||||
Other securities owned | 1 | 14 | |||||||
Other assets | (82) | (124) | |||||||
Payables to brokers, dealers, and clearing organizations | (120) | (45) | |||||||
Payables to brokerage clients | (1,713) | (896) | |||||||
Accrued expenses and other liabilities | (280) | (394) | |||||||
Net cash provided by (used for) operating activities | (381) | 3,380 | |||||||
Cash Flows from Investing Activities | |||||||||
Purchases of available for sale securities | (5,767) | (11,961) | |||||||
Proceeds from sales of available for sale securities | 16,274 | 115 | |||||||
Principal payments on available for sale securities | 12,306 | 6,957 | |||||||
Purchases of held to maturity securities | (10,469) | (22,212) | |||||||
Principal payments on held to maturity securities | 8,466 | 7,474 | |||||||
Net change in bank loans | (59) | (110) | |||||||
Purchases of equipment, office facilities, and property | (310) | (253) | |||||||
Purchases of Federal Home Loan Bank stock | (2) | (141) | |||||||
Proceeds from sales of Federal Home Loan Bank stock | 0 | 528 | |||||||
Other investing activities | 9 | (51) | |||||||
Net cash provided by (used for) investing activities | 20,448 | (19,654) | |||||||
Cash Flows from Financing Activities | |||||||||
Net change in bank deposits | [1] | (23,048) | 30,266 | ||||||
Net change in short-term borrowings | 0 | (15,000) | |||||||
Issuance of long-term debt | 593 | 1,936 | |||||||
Repayment of long-term debt | 0 | (904) | |||||||
Dividends paid | (537) | (354) | |||||||
Proceeds from stock options exercised | 48 | 99 | |||||||
Repurchases of common stock | (1,155) | 0 | |||||||
Other financing activities | (13) | (11) | |||||||
Net cash provided by (used for) financing activities | (24,112) | 16,032 | |||||||
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted | (4,045) | (242) | |||||||
Cash and Cash Equivalents, including Amounts Restricted at Beginning of Year | 38,227 | 19,160 | |||||||
Cash and Cash Equivalents, including Amounts Restricted at End of Period | [2] | 34,182 | 18,918 | ||||||
Non-cash investing activity: | |||||||||
Securities purchased during the period but settled after period end | 2,910 | 2,077 | |||||||
Non-cash financing activity: | |||||||||
Extinguishment of finance lease obligation through an assignment agreement | 52 | 0 | |||||||
Common stock repurchased during the period but settled after period end | 65 | 0 | |||||||
Cash paid during the period for: | |||||||||
Interest | 625 | 305 | |||||||
Income taxes | 641 | 482 | |||||||
Amounts included in the measurement of lease liabilities | [3] | 65 | |||||||
Leased assets obtained in exchange for new operating lease liabilities | [3] | 65 | |||||||
Transfers from other sweep features to bank sweep | $ 10,300 | $ 45,100 | |||||||
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Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2019 |
Jun. 30, 2018 |
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Reconciliation of cash, cash equivalents and amounts reported within the balance sheet | |||||
Cash and cash equivalents | [1] | $ 24,199 | $ 13,250 | ||
Restricted cash and cash equivalents amounts included in cash and investments segregated and on deposit for regulatory purposes | [1] | 9,983 | 5,668 | ||
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows | [1] | $ 34,182 | $ 18,918 | ||
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Introduction and Basis of Presentation |
6 Months Ended | ||||||||||||
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Jun. 30, 2019 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Introduction and Basis of Presentation | Introduction and Basis of Presentation The Charles Schwab Corporation (CSC) is a savings and loan holding company and engages, through its subsidiaries, in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. Significant business subsidiaries of CSC include the following:
Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries. These unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the U.S. (GAAP), which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements, and in the related disclosures. These estimates are based on information available as of the date of the condensed consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in Schwab’s 2018 Form 10-K. The significant accounting policies are included in Note 2 in the 2018 Form 10-K. There have been no significant changes to these accounting policies during the first six months of 2019, except as described in Note 2 below.
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New Accounting Standards |
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Accounting Changes and Error Corrections [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards
New Accounting Standards Not Yet Adopted
The cumulative effect of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of ASU 2016-02, Leases (Topic 842) were as follows:
(1) The adoption adjustment is comprised of two parts: 1) an increase of $596 million for the recognition of the January 1, 2019 ROU asset and 2) an $8 million decrease related to prepaid rent and initial direct costs, which were reclassified to the ROU asset upon adoption of ASU 2016-02. (2) The adoption adjustment is comprised of two parts: 1) an increase of $662 million for the recognition of the January 1, 2019 lease liability and 2) a $74 million decrease related to deferred rent and lease incentives, which were reclassified to the ROU asset upon adoption of ASU 2016-02.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Disaggregated Revenue Disaggregation of Schwab’s revenue by major source is as follows:
(1) Beginning in the first quarter of 2019, a change was made to move CTFs from other asset management and administration fees. Prior periods have been recast to reflect this change. For a summary of revenue provided by our reportable segments, see Note 16. The recognition of revenue is not impacted by the operating segment in which revenue is generated. Contract balances Receivables from contracts with customers within the scope of Accounting Standards Codification (ASC) 606, Revenue From Contracts With Customers (ASC 606) were $324 million at June 30, 2019 and $307 million at December 31, 2018 and were recorded in other assets on the condensed consolidated balance sheets. Schwab does not have any other significant contract assets or contract liability balances as of June 30, 2019. Unsatisfied performance obligations We do not have any unsatisfied performance obligations other than those that are subject to an elective practical expedient under ASC 606. The practical expedient applies to and is elected for contracts where we recognize revenue at the amount to which we have the right to invoice for services performed.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows:
(1) Approximately 41% and 36% of asset-backed securities held as of June 30, 2019 and December 31, 2018, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 40% and 42% of the asset-backed securities held as of June 30, 2019 and December 31, 2018, respectively. (2) As of June 30, 2019 and December 31, 2018, approximately 33% and 26%, respectively, of the total AFS and HTM investments in corporate debt securities and commercial paper were issued by institutions in the financial services industry. Approximately 15% and 18% of the holdings of these securities were issued by institutions in the information technology industry as of June 30, 2019 and December 31, 2018, respectively. (3) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $1.3 billion and $4.9 billion of AFS commercial paper as of June 30, 2019 and December 31, 2018, respectively. These holdings have maturities of three months or less and an aggregate market value equal to amortized cost. On January 1, 2019 the Company transferred certain U.S. agency mortgage-backed securities with a fair value of $8.8 billion from the HTM category to the AFS category as permitted by ASU 2017-12. For additional information on the transfer, see Notes 2 and 14. At June 30, 2019, our banking subsidiaries had pledged securities with a fair value of $27.0 billion as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 8). Certain banking subsidiaries also pledge investment securities as collateral to secure borrowing capacity at the Federal Reserve Bank discount window, and had pledged securities with a fair value of $8.4 billion as collateral for this facility at June 30, 2019. CSB also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $928 million at June 30, 2019. Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows:
(2) The number of investment positions with unrealized losses totaled 441 for AFS securities and 1,524 for HTM securities. At June 30, 2019, substantially all rated securities in the investment portfolios were investment grade. U.S. agency mortgage-backed securities do not have explicit credit ratings; however, management considers these to be of the highest credit quality and rating given the guarantee of principal and interest by the U.S. government or U.S. government-sponsored enterprises. Management evaluates whether investment securities are other-than-temporarily impaired (OTTI) on a quarterly basis as described in Note 2 in the 2018 Form 10-K. No amounts were recognized as OTTI in earnings or other comprehensive income during the six months ended June 30, 2019 or the year ended December 31, 2018. As of June 30, 2019 and December 31, 2018, Schwab did not hold any securities on which OTTI was previously recognized. In the table below, mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. As borrowers may have the right to call or prepay certain obligations underlying our investment securities, actual maturities may differ from the scheduled contractual maturities presented below. The maturities of AFS and HTM securities are as follows:
Proceeds and gross realized gains and losses from sales of AFS securities are as follows:
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Bank Loans and Related Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Loans and Related Allowance for Loan Losses | Bank Loans and Related Allowance for Loan Losses The composition of bank loans and delinquency analysis by loan type is as follows:
(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $71 million and $73 million at June 30, 2019 and December 31, 2018, respectively. (2) At June 30, 2019 and December 31, 2018, 47% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at June 30, 2019 or December 31, 2018. At June 30, 2019, CSB had pledged $10.7 billion of First Mortgages and HELOCs as collateral to secure borrowing capacity on a secured credit facility with the FHLB (see Note 8). Substantially all of the bank loans were collectively evaluated for impairment at both June 30, 2019 and December 31, 2018. Changes in the allowance for loan losses were as follows:
(1) All pledged asset lines (PALs) were fully collateralized by securities with fair values in excess of borrowings as of each period presented. A summary of impaired bank loan-related assets is as follows:
(1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in other assets on the condensed consolidated balance sheets. Credit Quality In addition to monitoring delinquency, Schwab monitors the credit quality of First Mortgages and HELOCs by stratifying the portfolios by the following:
Borrowers’ FICO scores are provided by an independent third-party credit reporting service and updated quarterly. The Origination LTV and Estimated Current LTV for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination. The Estimated Current LTV for each loan is updated on a monthly basis by reference to a home price appreciation index. The credit quality indicators of the Company’s bank loan portfolio are detailed below:
(1) Represents the LTV for the full line of credit (drawn and undrawn).
At June 30, 2019, First Mortgage loans of $9.5 billion had adjustable interest rates. Substantially all of these mortgages have initial fixed interest rates for three to ten years and interest rates that adjust annually thereafter. Approximately 30% of the balance of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 65% of the balance of these interest-only loans are not scheduled to reset for three or more years. Schwab’s mortgage loans do not include interest terms described as temporary introductory rates below current market rates. The HELOC product has a 30-year loan term with an initial draw period of ten years from the date of origination. After the initial draw period, the balance outstanding at such time is converted to a 20-year amortizing loan. The interest rate during the initial draw period and the 20-year amortizing period is a floating rate based on the prime rate plus a margin. The following table presents when current outstanding HELOCs will convert to amortizing loans:
At June 30, 2019, $1.1 billion of the HELOC portfolio was secured by second liens on the associated properties. Second lien mortgage loans typically possess a higher degree of credit risk given the subordination to the first lien holder in the event of default. In addition to the credit monitoring activities described previously, Schwab also monitors credit risk by reviewing the delinquency status of the first lien loan on the associated property. At June 30, 2019, the borrowers on approximately 52% of HELOC loan balances outstanding only paid the minimum amount due.
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Variable Interest Entities |
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Variable Interest Entities | Variable Interest Entities As of June 30, 2019 and December 31, 2018, all of Schwab’s involvement with variable interest entities (VIEs) is through CSB’s Community Reinvestment Act (CRA)-related investments and most of those are related to Low-Income Housing Tax Credit (LIHTC) investments. As part of CSB’s community reinvestment initiatives, CSB invests in funds that make equity investments in multifamily affordable housing properties. CSB receives tax credits and other tax benefits for these investments. Aggregate assets, liabilities and maximum exposure to loss The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but is not the primary beneficiary, are summarized in the table below:
(1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the condensed consolidated balance sheets. (2) Other CRA investments are recorded using either the adjusted cost method, equity method, or as HTM securities. Aggregate assets are included in HTM securities, bank loans – net, or other assets on the condensed consolidated balance sheets. |
Bank Deposits |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Deposits | Bank Deposits Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows:
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Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings CSC’s Senior Notes are unsecured obligations. CSC may redeem some or all of the Senior Notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the fixed-rate Senior Notes and quarterly for the floating-rate Senior Notes. The following table lists long-term debt by instrument outstanding as of June 30, 2019 and December 31, 2018:
(1) The finance lease obligation was extinguished through an assignment agreement during the first quarter of 2019. Annual maturities on long-term debt outstanding at June 30, 2019 are as follows:
Short-term borrowings: Our banking subsidiaries maintain secured credit facilities with the FHLB. Amounts available under these facilities are dependent on the amount of our First Mortgages, HELOCs, and the fair value of certain of their investment securities that are pledged as collateral. As of June 30, 2019 and December 31, 2018, the collateral pledged provided a total borrowing capacity of $35.2 billion and $35.5 billion, respectively, of which no amounts were outstanding at the end of either period. As a condition of the FHLB borrowings, we are required to hold FHLB stock, which was recorded in other assets on the condensed consolidated balance sheets. The investment in FHLB was $34 million at June 30, 2019 and $32 million at December 31, 2018.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating leases for corporate offices, branch locations, and server equipment and determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The lease liability may include payments that depend on a rate or index (such as the Consumer Price Index), measured using the rate or index at the commencement date. Payments that vary because of changes in facts or circumstances occurring after the commencement date are considered variable. These payments are not recognized as part of the lease liability and are expensed in the period incurred. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have lease agreements with lease and non-lease components. For the majority of our leases (real estate leases), the Company has elected the practical expedient to account for the lease and non-lease components as a single lease component. We have not elected the practical expedient for equipment leases and account for lease and non-lease components separately for those classes of leases. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include periods covered by options to extend when it is reasonably certain that we will exercise those options. The lease terms may also include periods covered by options to terminate when it is reasonably certain that we will not exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The Company does not have any finance leases and had an immaterial amount of sublease income for all periods presented. The following table details the amounts and locations of lease assets and liabilities on the condensed consolidated balance sheet:
The components of lease expense are as follows:
(1) Includes short-term leases, which are immaterial. (2) Includes payments that are entirely variable and amounts that represent the difference between payments based on an index or rate that would be reflected in the lease liability and what is actually incurred. The following tables present supplemental lease information as of June 30, 2019:
(1) Operating lease payments exclude $50 million of legally binding minimum lease payments for leases signed but not yet commenced. These leases will commence between 2019 and 2020 with lease terms of three years to 20 years. In accordance with the disclosure requirements for our adoption of ASU 2016-02, the Company is presenting the operating leases commitment table as of December 31, 2018. The following table is unchanged from the disclosure in Note 14 in the 2018 Form 10-K:
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Commitments and Contingencies |
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Commitments and Contingencies | Commitments and Contingencies Loan Portfolio: CSB provides a co-branded loan origination program for CSB clients (the Program) with Quicken Loans, Inc. (Quicken Loans®). Pursuant to the Program, Quicken Loans originates and services First Mortgages and HELOCs for CSB clients. Under the Program, CSB purchases certain First Mortgages and HELOCs that are originated by Quicken Loans. CSB purchased First Mortgages of $702 million and $594 million during the second quarters of 2019 and 2018, respectively, and $1.1 billion during the first six months of 2019 and 2018. CSB purchased HELOCs with commitments of $66 million and $100 million during the second quarters of 2019 and 2018, respectively, and $128 million and $207 million during the first six months of 2019 and 2018, respectively. The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows:
Guarantees and indemnifications: Schwab has clients that sell (i.e., write) listed option contracts that are cleared by the Options Clearing Corporation – a clearing house that establishes margin requirements on these transactions. We partially satisfy the margin requirements by arranging unsecured standby letter of credit agreements (LOCs), in favor of the Options Clearing Corporation, which are issued by several banks. At June 30, 2019, the aggregate face amount of these LOCs totaled $225 million. There were no funds drawn under any of these LOCs at June 30, 2019. In connection with its securities lending activities, Schwab is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collateral. Schwab also provides guarantees to securities clearing houses and exchanges under standard membership agreements, which require members to guarantee the performance of other members. Under the agreements, if another member becomes unable to satisfy its obligations to the clearing houses and exchanges, other members would be required to meet shortfalls. Schwab’s liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. The potential requirement for the Company to make payments under these arrangements is remote. Accordingly, no liability has been recognized for these guarantees. Legal contingencies: Schwab is subject to claims and lawsuits in the ordinary course of business, including arbitrations, class actions and other litigation, some of which include claims for substantial or unspecified damages. The Company is also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies. Predicting the outcome of a litigation or regulatory matter is inherently difficult, requiring significant judgment and evaluation of various factors, including the procedural status of the matter and any recent developments; prior experience and the experience of others in similar cases; available defenses, including potential opportunities to dispose of a case on the merits or procedural grounds before trial (e.g., motions to dismiss or for summary judgment); the progress of fact discovery; the opinions of counsel and experts regarding potential damages; and potential opportunities for settlement and the status of any settlement discussions. It may not be reasonably possible to estimate a range of potential liability until the matter is closer to resolution – pending, for example, further proceedings, the outcome of key motions or appeals, or discussions among the parties. Numerous issues may have to be developed, such as discovery of important factual matters and determination of threshold legal issues, which may include novel or unsettled questions of law. Reserves are established or adjusted or further disclosure and estimates of potential loss are provided as the matter progresses and more information becomes available. Schwab believes it has strong defenses in all significant matters currently pending and is contesting liability and any damages claimed. Nevertheless, some of these matters may result in adverse judgments or awards, including penalties, injunctions or other relief, and the Company may also determine to settle a matter because of the uncertainty and risks of litigation. Described below is a certain matter in which there is a reasonable possibility that a material loss could be incurred or where the matter may otherwise be of significant interest to stockholders. Unless otherwise noted, the Company is unable to provide a reasonable estimate of any potential liability given the stage of proceedings in the matter. With respect to all other pending matters, based on current information and consultation with counsel, it does not appear reasonably possible that the outcome of any such matter would be material to the financial condition, operating results, or cash flows of the Company. Crago Order Routing Litigation: On July 13, 2016, a securities class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of a putative class of customers executing equity orders through CS&Co. The lawsuit names CS&Co and CSC as defendants and alleges that an agreement under which CS&Co routed orders to UBS Securities LLC between July 13, 2011 and December 31, 2014 violated CS&Co’s duty to seek best execution. Plaintiffs seek unspecified damages, interest, injunctive and equitable relief, and attorneys’ fees and costs. After a first amended complaint was dismissed with leave to amend, plaintiffs filed a second amended complaint on August 14, 2017. Defendants again moved to dismiss, and in a decision issued December 5, 2017, the court denied the motion. Defendants have answered the complaint to deny all allegations, and intend to vigorously contest the lawsuit.
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Financial Instruments Subject to Off-Balance Sheet Credit Risk |
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Offsetting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Subject to Off-Balance Sheet Credit Risk | Financial Instruments Subject to Off-Balance Sheet Credit Risk Resale agreements: Schwab enters into collateralized resale agreements principally with other broker-dealers, which could result in losses in the event the counterparty fails to purchase the securities held as collateral for the cash advanced and the fair value of the securities declines. To mitigate this risk, Schwab requires that the counterparty deliver securities to a custodian, to be held as collateral, with a fair value at or in excess of the resale price. Schwab also sets standards for the credit quality of the counterparty, monitors the fair value of the underlying securities as compared to the related receivable, including accrued interest, and requires additional collateral where deemed appropriate. The collateral provided under these resale agreements is utilized to meet obligations under broker-dealer client protection rules, which place limitations on our ability to access such segregated securities. For Schwab to repledge or sell this collateral, we would be required to deposit cash and/or securities of an equal amount into our segregated reserve bank accounts in order to meet our segregated cash and investment requirement. Schwab’s resale agreements are not subject to master netting arrangements. Securities lending: Schwab loans brokerage client securities temporarily to other brokers and clearing houses in connection with its securities lending activities and receives cash as collateral for the securities loaned. Increases in security prices may cause the fair value of the securities loaned to exceed the amount of cash received as collateral. In the event the counterparty to these transactions does not return the loaned securities or provide additional cash collateral, we may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy our client obligations. Schwab mitigates this risk by requiring credit approvals for counterparties, monitoring the fair value of securities loaned, and requiring additional cash as collateral when necessary. We also borrow securities from other broker-dealers to fulfill short sales by brokerage clients and deliver cash to the lender in exchange for the securities. The fair value of these borrowed securities was $76 million and $99 million at June 30, 2019 and December 31, 2018, respectively. All of our securities lending transactions are through a program with a clearing organization, which guarantees the return of cash to us and is subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities lending transactions. Therefore, the securities loaned and securities borrowed are presented gross in the condensed consolidated balance sheets. The following table presents information about our resale agreements and securities lending activity depicting the potential effect of rights of setoff between these recognized assets and recognized liabilities at June 30, 2019 and December 31, 2018:
(2) Actual collateral was greater than or equal to 102% of the related assets. At June 30, 2019 and December 31, 2018, the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $8.3 billion and $7.4 billion, respectively. (3) Included in receivables from brokers, dealers, and clearing organizations in the condensed consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the condensed consolidated balance sheets. The cash collateral received from counterparties under securities lending transactions was equal to or greater than the market value of the securities loaned at June 30, 2019 and December 31, 2018. (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. Margin lending: Clients with margin loans have agreed to allow Schwab to pledge securities in their brokerage accounts in accordance with federal regulations. The following table summarizes the fair value of client securities that were available, under such regulations, that could have been used as collateral, and the amounts that we had pledged:
Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $190 million as of June 30, 2019 and $97 million as of December 31, 2018. (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation.
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Fair Values of Assets and Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities Assets and liabilities measured at fair value on a recurring basis Schwab’s assets and liabilities measured at fair value on a recurring basis include: certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, other securities owned, and AFS securities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. We generally obtain prices from three independent third-party pricing sources for assets recorded at fair value. Our primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in material differences in the amounts recorded. For a description of the fair value hierarchy and Schwab’s fair value methodologies, see Note 2 in the 2018 Form 10-K. We did not transfer any assets or liabilities between Level 1, Level 2, or Level 3 during the six months ended June 30, 2019, or the year ended December 31, 2018. In addition, the Company did not adjust prices received from the primary independent third-party pricing service at June 30, 2019 or December 31, 2018. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the fair value hierarchy for assets measured at fair value on a recurring basis. Liabilities recorded at fair value were not material, and therefore are not included in the following tables:
Fair Value of Other Financial Instruments The following tables present the fair value hierarchy for other financial instruments:
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity On January 30, 2019, CSC publicly announced that its Board of Directors authorized a new Share Repurchase Program to repurchase up to $4.0 billion of common stock. The share repurchase authorization does not have an expiration date. During the second quarter of 2019, CSC repurchased 29 million shares of its common stock under this authorization for $1.2 billion. There were no repurchases of CSC’s common stock under this authorization during the first quarter of 2019. The Company’s preferred stock issued and outstanding is as follows:
(1) Represented by depositary shares, except for Series A. N/A Not applicable. Dividends declared on the Company’s preferred stock are as follows:
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Accumulated Other Comprehensive Income |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of other comprehensive income (loss) are as follows:
AOCI balances are as follows:
(1) As part of the adoption of ASU 2017-12, in the first quarter of 2019, the Company made a one-time election to transfer a portion of its HTM securities to AFS. The transfer resulted in a net of tax increase to AOCI of $19 million. See Notes 2 and 4 for additional discussion on the transfer of HTM securities to AFS.
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Regulatory Requirements |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Requirements | Regulatory Requirements At June 30, 2019, CSC and CSB met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and CSB are as follows:
(1) Beginning in 2019, CSC and CSB are subject to the “advanced approaches” framework under the Basel III capital rule. As a result, we are now required to include all components of AOCI in regulatory capital and report our supplementary leverage ratio, which is calculated as Tier 1 capital divided by total leverage exposure. Total leverage exposure includes all on-balance sheet assets and certain off-balance sheet exposures, including unused commitments. Prior to 2019, CSC and CSB elected to opt-out of the requirement to include most components of AOCI in Common Equity Tier 1 Capital; the amounts and ratios for December 31, 2018 are presented on this basis. (2) Under the Basel III capital rule, CSC and CSB are also required to maintain a capital conservation buffer and, beginning in 2019, a countercyclical capital buffer above the regulatory minimum risk-based capital ratios. The capital conservation buffer became 2.5% on January 1, 2019 (1.875% at December 31, 2018). At June 30, 2019, the countercyclical capital buffer was zero percent. If either buffer falls below the minimum requirement, the Company would be subject to limits on capital distributions and discretionary bonus payments to executive officers. At June 30, 2019 the minimum capital requirement plus capital conservation buffer and countercyclical capital buffer for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 7.0%, 8.5%, and 10.5%, respectively. N/A Not applicable. Based on its regulatory capital ratios at June 30, 2019, CSB is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since June 30, 2019 that management believes have changed CSB’s capital category. In late 2017, Schwab acquired a federal savings bank charter which is now called Charles Schwab Premier Bank. At June 30, 2019, the balance sheet of Charles Schwab Premier Bank consisted primarily of investment securities, and held total assets of $13.8 billion. Charles Schwab Premier Bank is subject to similar regulatory guidelines and requirements, and seeks to maintain a Tier 1 Leverage Ratio similar to CSB. Net capital and net capital requirements for CS&Co are as follows:
In accordance with the SEC Customer Protection Rule, CS&Co had portions of its cash and investments segregated for the exclusive benefit of clients at June 30, 2019. The SEC Customer Protection Rule requires broker-dealers to segregate client fully-paid securities and cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts. Amounts included in cash and investments segregated and on deposit for regulatory purposes represent actual balances on deposit. Cash and cash equivalents included in cash and investments segregated and on deposit for regulatory purposes are presented as part of Schwab’s cash balances in the consolidated statements of cash flows.
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Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage and banking services to individual investors, and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking, and support services, as well as retirement business services, to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are allocated to the two segments based on which segment services the client. Management evaluates the performance of the segments on a pre-tax basis. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments. Financial information for the segments is presented in the following tables:
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On July 25, 2019, the Company announced a definitive agreement to acquire assets of USAA-IMCO, including over one million brokerage and managed portfolio accounts with approximately $90 billion in client assets for $1.8 billion in cash. The two companies have also agreed to enter into a long-term referral agreement, effective at closing of the acquisition, that would make Schwab the exclusive wealth management and brokerage provider for USAA members. The transaction is expected to close in 2020, subject to satisfaction of closing conditions, including regulatory approvals and the implementation of conversion plans. |
New Accounting Standards (Policy) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | These unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the U.S. (GAAP), which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements, and in the related disclosures. These estimates are based on information available as of the date of the condensed consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. In the opinion of management, all normal, recurring adjustments have been included for a fair statement of this interim financial information. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in Schwab’s 2018 Form 10-K.
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Adoption of New Accounting Standards and New Accounting Standards Not Yet Adopted | Adoption of New Accounting Standards
New Accounting Standards Not Yet Adopted
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New Accounting Standards (Tables) |
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Accounting Changes and Error Corrections [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements | Adoption of New Accounting Standards
New Accounting Standards Not Yet Adopted
The cumulative effect of the changes made to our consolidated January 1, 2019 balance sheet for the adoption of ASU 2016-02, Leases (Topic 842) were as follows:
(1) The adoption adjustment is comprised of two parts: 1) an increase of $596 million for the recognition of the January 1, 2019 ROU asset and 2) an $8 million decrease related to prepaid rent and initial direct costs, which were reclassified to the ROU asset upon adoption of ASU 2016-02. (2) The adoption adjustment is comprised of two parts: 1) an increase of $662 million for the recognition of the January 1, 2019 lease liability and 2) a $74 million decrease related to deferred rent and lease incentives, which were reclassified to the ROU asset upon adoption of ASU 2016-02.
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Schwab's Revenue | Disaggregation of Schwab’s revenue by major source is as follows:
(1) Beginning in the first quarter of 2019, a change was made to move CTFs from other asset management and administration fees. Prior periods have been recast to reflect this change.
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Investment Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Securities Held to Maturity | The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows:
(1) Approximately 41% and 36% of asset-backed securities held as of June 30, 2019 and December 31, 2018, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 40% and 42% of the asset-backed securities held as of June 30, 2019 and December 31, 2018, respectively. (2) As of June 30, 2019 and December 31, 2018, approximately 33% and 26%, respectively, of the total AFS and HTM investments in corporate debt securities and commercial paper were issued by institutions in the financial services industry. Approximately 15% and 18% of the holdings of these securities were issued by institutions in the information technology industry as of June 30, 2019 and December 31, 2018, respectively. (3) Included in cash and cash equivalents on the condensed consolidated balance sheets, but excluded from this table is $1.3 billion and $4.9 billion of AFS commercial paper as of June 30, 2019 and December 31, 2018, respectively. These holdings have maturities of three months or less and an aggregate market value equal to amortized cost.
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Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss | Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows:
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Maturities of Securities Available for Sale and Securities Held to Maturity | The maturities of AFS and HTM securities are as follows:
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Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale | Proceeds and gross realized gains and losses from sales of AFS securities are as follows:
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Bank Loans and Related Allowance for Loan Losses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Bank Loans and Delinquency Analysis by Loan Segment | The composition of bank loans and delinquency analysis by loan type is as follows:
(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $71 million and $73 million at June 30, 2019 and December 31, 2018, respectively. (2) At June 30, 2019 and December 31, 2018, 47% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at June 30, 2019 or December 31, 2018.
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Changes in Allowance for Loan Losses | Changes in the allowance for loan losses were as follows:
(1) All pledged asset lines (PALs) were fully collateralized by securities with fair values in excess of borrowings as of each period presented.
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Impaired Bank Loan Related Assets | A summary of impaired bank loan-related assets is as follows:
(1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in other assets on the condensed consolidated balance sheets.
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Credit Quality Indicators of Bank Loan Portfolio | The credit quality indicators of the Company’s bank loan portfolio are detailed below:
(1) Represents the LTV for the full line of credit (drawn and undrawn).
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Converting to Amortizing Loans | The following table presents when current outstanding HELOCs will convert to amortizing loans:
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Variable Interest Entities (Tables) |
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Assets, Liabilities and Maximum Exposure to Loss | The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but is not the primary beneficiary, are summarized in the table below:
(1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the condensed consolidated balance sheets. (2) Other CRA investments are recorded using either the adjusted cost method, equity method, or as HTM securities. Aggregate assets are included in HTM securities, bank loans – net, or other assets on the condensed consolidated balance sheets. |
Bank Deposits (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits | Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows:
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Borrowings (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt Including Unamortized Debt Discounts and Premiums | The following table lists long-term debt by instrument outstanding as of June 30, 2019 and December 31, 2018:
(1) The finance lease obligation was extinguished through an assignment agreement during the first quarter of 2019. |
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Annual Maturities on Long-term Debt Outstanding | Annual maturities on long-term debt outstanding at June 30, 2019 are as follows:
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Leases (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Leases | The following table details the amounts and locations of lease assets and liabilities on the condensed consolidated balance sheet:
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Schedule of Lease Cost and Lease Term and Discount Rate | The components of lease expense are as follows:
(1) Includes short-term leases, which are immaterial. (2) Includes payments that are entirely variable and amounts that represent the difference between payments based on an index or rate that would be reflected in the lease liability and what is actually incurred. The following tables present supplemental lease information as of June 30, 2019:
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Schedule of Maturity of Lease Liabilities |
(1) Operating lease payments exclude $50 million of legally binding minimum lease payments for leases signed but not yet commenced. These leases will commence between 2019 and 2020 with lease terms of three years to 20 years.
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Schedule of Maturity of Lease Liabilities, Before 842 | In accordance with the disclosure requirements for our adoption of ASU 2016-02, the Company is presenting the operating leases commitment table as of December 31, 2018. The following table is unchanged from the disclosure in Note 14 in the 2018 Form 10-K:
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Commitments and Contingencies (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Commitments to Purchase or Sell | The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows:
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Financial Instruments Subject to Off-Balance Sheet Credit Risk (Tables) |
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Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting Assets and Liabilities | The following table presents information about our resale agreements and securities lending activity depicting the potential effect of rights of setoff between these recognized assets and recognized liabilities at June 30, 2019 and December 31, 2018:
(2) Actual collateral was greater than or equal to 102% of the related assets. At June 30, 2019 and December 31, 2018, the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $8.3 billion and $7.4 billion, respectively. (3) Included in receivables from brokers, dealers, and clearing organizations in the condensed consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the condensed consolidated balance sheets. The cash collateral received from counterparties under securities lending transactions was equal to or greater than the market value of the securities loaned at June 30, 2019 and December 31, 2018. (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities.
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Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged | The following table summarizes the fair value of client securities that were available, under such regulations, that could have been used as collateral, and the amounts that we had pledged:
Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $190 million as of June 30, 2019 and $97 million as of December 31, 2018. (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation.
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Fair Values of Assets and Liabilities (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair value hierarchy for assets measured at fair value on a recurring basis. Liabilities recorded at fair value were not material, and therefore are not included in the following tables:
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Fair Value of Other Financial Instruments | The following tables present the fair value hierarchy for other financial instruments:
|
Stockholders' Equity (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock Issued and Outstanding | The Company’s preferred stock issued and outstanding is as follows:
(1) Represented by depositary shares, except for Series A. N/A Not applicable.
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Dividends Declared | Dividends declared on the Company’s preferred stock are as follows:
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Accumulated Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income (Loss) | The components of other comprehensive income (loss) are as follows:
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Accumulated Other Comprehensive Income Balances | AOCI balances are as follows:
(1) As part of the adoption of ASU 2017-12, in the first quarter of 2019, the Company made a one-time election to transfer a portion of its HTM securities to AFS. The transfer resulted in a net of tax increase to AOCI of $19 million. See Notes 2 and 4 for additional discussion on the transfer of HTM securities to AFS.
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Regulatory Requirements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital and Ratios | The regulatory capital and ratios for CSC (consolidated) and CSB are as follows:
(1) Beginning in 2019, CSC and CSB are subject to the “advanced approaches” framework under the Basel III capital rule. As a result, we are now required to include all components of AOCI in regulatory capital and report our supplementary leverage ratio, which is calculated as Tier 1 capital divided by total leverage exposure. Total leverage exposure includes all on-balance sheet assets and certain off-balance sheet exposures, including unused commitments. Prior to 2019, CSC and CSB elected to opt-out of the requirement to include most components of AOCI in Common Equity Tier 1 Capital; the amounts and ratios for December 31, 2018 are presented on this basis. (2) Under the Basel III capital rule, CSC and CSB are also required to maintain a capital conservation buffer and, beginning in 2019, a countercyclical capital buffer above the regulatory minimum risk-based capital ratios. The capital conservation buffer became 2.5% on January 1, 2019 (1.875% at December 31, 2018). At June 30, 2019, the countercyclical capital buffer was zero percent. If either buffer falls below the minimum requirement, the Company would be subject to limits on capital distributions and discretionary bonus payments to executive officers. At June 30, 2019 the minimum capital requirement plus capital conservation buffer and countercyclical capital buffer for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 7.0%, 8.5%, and 10.5%, respectively. N/A Not applicable. |
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Net Capital and Net Capital Requirements | Net capital and net capital requirements for CS&Co are as follows:
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information for Reportable Segments | Financial information for the segments is presented in the following tables:
|
New Accounting Standards (Details) - USD ($) $ in Millions |
Jan. 01, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease right-of-use asset | $ 601.0 | ||||||
Operating lease liability | 670.0 | ||||||
Accumulated other comprehensive income (loss) | $ 99.0 | $ (71.0) | $ (252.0) | $ (278.0) | $ (260.0) | $ (152.0) | |
ASU 2016-02 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease right-of-use asset | $ 596.0 | ||||||
Operating lease liability | 662.0 | ||||||
ASU 2017-12 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Fair value of securities transferred from held to maturity | 8,800.0 | ||||||
Accumulated other comprehensive income (loss) | $ 19.0 |
New Accounting Standards (Cumulative Effect of Changes for the Adoption of ASU 2016-02) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Assets | |||
Other assets | $ 2,634 | $ 2,046 | |
Operating lease right-of-use asset | $ 601 | ||
Liabilities | |||
Accrued expenses and other liabilities | 3,542 | $ 2,954 | |
Operating lease liability | $ 670 | ||
ASU 2016-02 [Member] | |||
Assets | |||
Operating lease right-of-use asset | 596 | ||
Prepaid rent and initial direct costs | 8 | ||
Liabilities | |||
Operating lease liability | 662 | ||
Deferred rent and lease incentives | 74 | ||
ASU 2016-02 [Member] | Adjustments [Member] | |||
Assets | |||
Other assets | 588 | ||
Liabilities | |||
Accrued expenses and other liabilities | $ 588 |
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Interest revenue | $ 1,927 | $ 1,590 | $ 3,925 | $ 3,011 |
Interest expense | (318) | (183) | (635) | (341) |
Net interest revenue | 1,609 | 1,407 | 3,290 | 2,670 |
Other | 112 | 85 | 214 | 168 |
Total net revenues | 2,681 | 2,486 | 5,404 | 4,884 |
Mutual funds, ETFs, and CTFs [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 428 | 469 | 842 | 973 |
Advice solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 295 | 283 | 573 | 565 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 63 | 62 | 126 | 127 |
Asset management and administration fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 786 | 814 | 1,541 | 1,665 |
Commissions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 155 | 157 | 318 | 346 |
Principal Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | 19 | 23 | 41 | 35 |
Trading revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset management and administration fees and Trading revenue | $ 174 | $ 180 | $ 359 | $ 381 |
Revenue Recognition (Capitalized Contract Costs and Contract Balances) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers | $ 324 | $ 307 |
Investment Securities (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Held to Maturity Securities) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Available for sale securities: | ||
Amortized Cost | $ 54,364 | $ 66,735 |
Gross Unrealized Gains | 363 | 72 |
Gross Unrealized Losses | 79 | 229 |
Fair Value | 54,648 | 66,578 |
Held to maturity securities: | ||
Amortized Cost | 138,326 | 144,009 |
Gross Unrealized Gains | 1,620 | 330 |
Gross Unrealized Losses | 452 | 2,301 |
Fair Value | 139,494 | 142,038 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 32,773 | 25,594 |
Gross Unrealized Gains | 263 | 44 |
Gross Unrealized Losses | 49 | 82 |
Fair Value | 32,987 | 25,556 |
Held to maturity securities: | ||
Amortized Cost | 112,570 | 118,064 |
Gross Unrealized Gains | 1,380 | 217 |
Gross Unrealized Losses | 417 | 2,188 |
Fair Value | 113,533 | 116,093 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 7,352 | 18,410 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | 23 | 108 |
Fair Value | 7,333 | 18,302 |
Held to maturity securities: | ||
Amortized Cost | 223 | 223 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | 0 | 6 |
Fair Value | 227 | 217 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 6,055 | 10,086 |
Gross Unrealized Gains | 37 | 14 |
Gross Unrealized Losses | 7 | 15 |
Fair Value | 6,085 | 10,085 |
Held to maturity securities: | ||
Amortized Cost | 18,218 | 18,502 |
Gross Unrealized Gains | 75 | 83 |
Gross Unrealized Losses | 32 | 39 |
Fair Value | 18,261 | 18,546 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 5,378 | 7,477 |
Gross Unrealized Gains | 53 | 10 |
Gross Unrealized Losses | 0 | 20 |
Fair Value | 5,431 | 7,467 |
Held to maturity securities: | ||
Amortized Cost | 4,593 | 4,477 |
Gross Unrealized Gains | 43 | 2 |
Gross Unrealized Losses | 3 | 47 |
Fair Value | 4,633 | 4,432 |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Amortized Cost | 2,120 | 3,682 |
Gross Unrealized Gains | 6 | 4 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 2,126 | 3,685 |
Held to maturity securities: | ||
Amortized Cost | 200 | 200 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 201 | 201 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Amortized Cost | 250 | 900 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 2 |
Fair Value | 250 | 898 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities: | ||
Amortized Cost | 1,310 | 1,327 |
Gross Unrealized Gains | 93 | 24 |
Gross Unrealized Losses | 0 | 3 |
Fair Value | 1,403 | 1,348 |
Commercial paper [Member] | ||
Available for sale securities: | ||
Amortized Cost | 422 | 522 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 422 | 522 |
Available-for-sale securities, current | 1,300 | 4,900 |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 50 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 1 | |
Fair Value | 49 | |
Held to maturity securities: | ||
Amortized Cost | 50 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 50 | 49 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 14 | 14 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 14 | 14 |
Held to maturity securities: | ||
Amortized Cost | 1,143 | 1,156 |
Gross Unrealized Gains | 24 | 3 |
Gross Unrealized Losses | 0 | 17 |
Fair Value | 1,167 | 1,142 |
Other [Member] | ||
Held to maturity securities: | ||
Amortized Cost | 19 | 10 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 19 | $ 10 |
Federal Family Education Loan Program (FFELP) Guaranteed Loans [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percentage | 41.00% | 36.00% |
Collateralized Credit Card Securities [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percentage | 40.00% | 42.00% |
Corporate debt securities issued by financial services industry [Member] | ||
Held to maturity securities: | ||
AFS and HTM securities percentage | 33.00% | 26.00% |
Corporate debt securities, information technology [Member] | ||
Held to maturity securities: | ||
AFS and HTM securities percentage | 15.00% | 18.00% |
Investment Securities (Narrative) (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jan. 01, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Schedule of Held-to-maturity Securities [Line Items] | |||
OTTI recognized in earnings or other comprehensive income | $ 0 | $ 0 | |
Deposits [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 928,000,000 | ||
Federal Reserve Bank Advances [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 8,400,000,000 | ||
Federal Home Loan Bank of San Francisco [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | $ 27,000,000,000.0 | ||
ASU 2017-12 [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of securities transferred from held to maturity | $ 8,800,000,000 |
Investment Securities (Available For Sale and Held to Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions |
Jun. 30, 2019
USD ($)
security
|
Dec. 31, 2018
USD ($)
security
|
---|---|---|
Available for sale securities: | ||
Less than 12 months Fair Value | $ 7,868 | $ 23,503 |
Less than 12 months Unrealized Losses | 29 | 67 |
12 months or longer Fair Value | 12,253 | 12,888 |
12 months or longer Unrealized Losses | 50 | 162 |
Total Fair Value | 20,121 | 36,391 |
Total Unrealized Losses | 79 | 229 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 14,410 | 39,327 |
Less than 12 months Unrealized Losses | 58 | 290 |
12 months or longer Fair Value | 42,835 | 58,794 |
12 months or longer Unrealized Losses | 394 | 2,011 |
Total Fair Value | 57,245 | 98,121 |
Total Unrealized Losses | 452 | 2,301 |
Total securities with unrealized losses | ||
Less than 12 months Fair Value | 22,278 | 62,830 |
Less than 12 months Unrealized Losses | 87 | 357 |
12 months or longer Fair Value | 55,088 | 71,682 |
12 months or longer Unrealized Losses | 444 | 2,173 |
Total Fair Value | 77,366 | 134,512 |
Total Unrealized Losses | $ 531 | $ 2,530 |
Number of available for sale securities in unrealized loss positions | security | 348 | 441 |
Number of held to maturity securities in unrealized loss positions | security | 856 | 1,524 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | $ 7,393 | $ 9,529 |
Less than 12 months Unrealized Losses | 28 | 32 |
12 months or longer Fair Value | 6,082 | 4,257 |
12 months or longer Unrealized Losses | 21 | 50 |
Total Fair Value | 13,475 | 13,786 |
Total Unrealized Losses | 49 | 82 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 6,433 | 29,263 |
Less than 12 months Unrealized Losses | 24 | 222 |
12 months or longer Fair Value | 41,952 | 56,435 |
12 months or longer Unrealized Losses | 393 | 1,966 |
Total Fair Value | 48,385 | 85,698 |
Total Unrealized Losses | 417 | 2,188 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 22 | 4,951 |
Less than 12 months Unrealized Losses | 0 | 6 |
12 months or longer Fair Value | 5,645 | 7,037 |
12 months or longer Unrealized Losses | 23 | 102 |
Total Fair Value | 5,667 | 11,988 |
Total Unrealized Losses | 23 | 108 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 0 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 218 | |
12 months or longer Unrealized Losses | 6 | |
Total Fair Value | 218 | |
Total Unrealized Losses | 6 | |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 453 | 4,050 |
Less than 12 months Unrealized Losses | 1 | 9 |
12 months or longer Fair Value | 526 | 837 |
12 months or longer Unrealized Losses | 6 | 6 |
Total Fair Value | 979 | 4,887 |
Total Unrealized Losses | 7 | 15 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 7,388 | 6,795 |
Less than 12 months Unrealized Losses | 32 | 35 |
12 months or longer Fair Value | 287 | 376 |
12 months or longer Unrealized Losses | 0 | 4 |
Total Fair Value | 7,675 | 7,171 |
Total Unrealized Losses | 32 | 39 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 3,561 | |
Less than 12 months Unrealized Losses | 19 | |
12 months or longer Fair Value | 254 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 3,815 | |
Total Unrealized Losses | 20 | |
Held to maturity securities: | ||
Less than 12 months Fair Value | 589 | 2,909 |
Less than 12 months Unrealized Losses | 2 | 29 |
12 months or longer Fair Value | 596 | 1,066 |
12 months or longer Unrealized Losses | 1 | 18 |
Total Fair Value | 1,185 | 3,975 |
Total Unrealized Losses | $ 3 | 47 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 77 | |
Less than 12 months Unrealized Losses | 2 | |
12 months or longer Fair Value | 18 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 95 | |
Total Unrealized Losses | 3 | |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 1,217 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 150 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 1,367 | |
Total Unrealized Losses | 1 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 283 | |
Less than 12 months Unrealized Losses | 2 | |
12 months or longer Fair Value | 632 | |
12 months or longer Unrealized Losses | 15 | |
Total Fair Value | 915 | |
Total Unrealized Losses | 17 | |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 195 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 304 | |
12 months or longer Unrealized Losses | 2 | |
Total Fair Value | 499 | |
Total Unrealized Losses | 2 | |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 0 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 49 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 49 | |
Total Unrealized Losses | 1 | |
Held to maturity securities: | ||
Less than 12 months Fair Value | 0 | |
Less than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 49 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 49 | |
Total Unrealized Losses | $ 1 |
Investment Securities (Maturities of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Available for sale securities, fair value | ||
Within 1 year | $ 7,691 | |
After 1 year through 5 years | 13,931 | |
After 5 years through 10 years | 12,606 | |
After 10 years | 20,420 | |
Fair Value | 54,648 | $ 66,578 |
Available for sale securities, amortized cost | ||
Within 1 year | 7,692 | |
After 1 year through 5 years | 13,863 | |
After 5 years through 10 years | 12,588 | |
After 10 years | 20,221 | |
Amortized Cost | 54,364 | 66,735 |
Held to maturity securities, fair value | ||
Within 1 year | 1,204 | |
After 1 year through 5 years | 21,376 | |
After 5 years through 10 years | 44,162 | |
After 10 years | 72,752 | |
Fair Value | 139,494 | 142,038 |
Held to maturity securities, amortized cost | ||
Within 1 year | 1,203 | |
After 1 year through 5 years | 21,138 | |
After 5 years through 10 years | 43,371 | |
After 10 years | 72,614 | |
Amortized Cost | 138,326 | 144,009 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 35 | |
After 1 year through 5 years | 1,234 | |
After 5 years through 10 years | 11,605 | |
After 10 years | 20,113 | |
Fair Value | 32,987 | 25,556 |
Available for sale securities, amortized cost | ||
Amortized Cost | 32,773 | 25,594 |
Held to maturity securities, fair value | ||
Within 1 year | 156 | |
After 1 year through 5 years | 15,464 | |
After 5 years through 10 years | 34,066 | |
After 10 years | 63,847 | |
Fair Value | 113,533 | 116,093 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 112,570 | 118,064 |
U.S. Treasury securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 4,432 | |
After 1 year through 5 years | 2,901 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 7,333 | 18,302 |
Available for sale securities, amortized cost | ||
Amortized Cost | 7,352 | 18,410 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 227 | |
After 10 years | 0 | |
Fair Value | 227 | 217 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 223 | 223 |
Asset-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 4,791 | |
After 5 years through 10 years | 1,001 | |
After 10 years | 293 | |
Fair Value | 6,085 | 10,085 |
Available for sale securities, amortized cost | ||
Amortized Cost | 6,055 | 10,086 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 2,300 | |
After 5 years through 10 years | 8,802 | |
After 10 years | 7,159 | |
Fair Value | 18,261 | 18,546 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 18,218 | 18,502 |
Corporate debt securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,631 | |
After 1 year through 5 years | 3,800 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 5,431 | 7,467 |
Available for sale securities, amortized cost | ||
Amortized Cost | 5,378 | 7,477 |
Held to maturity securities, fair value | ||
Within 1 year | 847 | |
After 1 year through 5 years | 3,098 | |
After 5 years through 10 years | 688 | |
After 10 years | 0 | |
Fair Value | 4,633 | 4,432 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 4,593 | 4,477 |
Certificates of deposit [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 921 | |
After 1 year through 5 years | 1,205 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 2,126 | 3,685 |
Available for sale securities, amortized cost | ||
Amortized Cost | 2,120 | 3,682 |
Held to maturity securities, fair value | ||
Within 1 year | 201 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 201 | 201 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 200 | 200 |
U.S. agency notes [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 250 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 250 | 898 |
Available for sale securities, amortized cost | ||
Amortized Cost | 250 | 900 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 98 | |
After 5 years through 10 years | 379 | |
After 10 years | 926 | |
Fair Value | 1,403 | 1,348 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,310 | 1,327 |
Commercial paper [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 422 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 422 | 522 |
Available for sale securities, amortized cost | ||
Amortized Cost | 422 | 522 |
Foreign government agency securities [Member] | ||
Available for sale securities, fair value | ||
Fair Value | 49 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 50 | |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 50 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 50 | 49 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 50 | 50 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 14 | |
Fair Value | 14 | 14 |
Available for sale securities, amortized cost | ||
Amortized Cost | 14 | 14 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 366 | |
After 5 years through 10 years | 0 | |
After 10 years | 801 | |
Fair Value | 1,167 | 1,142 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,143 | 1,156 |
Other [Member] | ||
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 19 | |
Fair Value | 19 | 10 |
Held to maturity securities, amortized cost | ||
Amortized Cost | $ 19 | $ 10 |
Investment Securities (Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of available for sale securities | $ 5,622 | $ 115 | $ 16,274 | $ 115 |
Gross realized gains | 7 | 0 | 10 | 0 |
Gross realized losses | $ 4 | $ 0 | $ 6 | $ 0 |
Bank Loans and Related Allowance for Loan Losses (Composition of Bank Loans and Delinquency Analysis by Loan Segment) (Details) - USD ($) |
6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Financing Receivable, Past Due [Line Items] | ||||||
Current | $ 16,615,000,000 | $ 16,580,000,000 | ||||
Past due and other nonaccrual loans | 43,000,000 | 50,000,000 | ||||
Total loans | 16,658,000,000 | 16,630,000,000 | ||||
Allowance for loan losses | 19,000,000 | 21,000,000 | $ 21,000,000 | $ 26,000,000 | $ 27,000,000 | $ 26,000,000 |
Total bank loans – net | 16,639,000,000 | 16,609,000,000 | ||||
Loans 90 days past due and still accruing | 0 | 0 | ||||
30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 19,000,000 | 27,000,000 | ||||
60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 5,000,000 | 3,000,000 | ||||
More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 19,000,000 | 20,000,000 | ||||
First Mortgage [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 10,458,000,000 | 10,349,000,000 | ||||
Past due and other nonaccrual loans | 29,000,000 | 35,000,000 | ||||
Total loans | 10,487,000,000 | 10,384,000,000 | ||||
Allowance for loan losses | 12,000,000 | 14,000,000 | 14,000,000 | 17,000,000 | 17,000,000 | 16,000,000 |
Total bank loans – net | 10,475,000,000 | 10,370,000,000 | ||||
First Mortgage [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 16,000,000 | 21,000,000 | ||||
First Mortgage [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 2,000,000 | 2,000,000 | ||||
First Mortgage [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 11,000,000 | 12,000,000 | ||||
HELOCs [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 1,297,000,000 | 1,493,000,000 | ||||
Past due and other nonaccrual loans | 11,000,000 | 12,000,000 | ||||
Total loans | 1,308,000,000 | 1,505,000,000 | ||||
Allowance for loan losses | 5,000,000 | 5,000,000 | 5,000,000 | 7,000,000 | 7,000,000 | 8,000,000 |
Total bank loans – net | 1,303,000,000 | 1,500,000,000 | ||||
HELOCs [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 2,000,000 | 3,000,000 | ||||
HELOCs [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 1,000,000 | 1,000,000 | ||||
HELOCs [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 8,000,000 | 8,000,000 | ||||
Pledged asset lines [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 4,692,000,000 | 4,558,000,000 | ||||
Past due and other nonaccrual loans | 3,000,000 | 3,000,000 | ||||
Total loans | 4,695,000,000 | 4,561,000,000 | ||||
Allowance for loan losses | 0 | 0 | ||||
Total bank loans – net | 4,695,000,000 | 4,561,000,000 | ||||
Pledged asset lines [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 1,000,000 | 3,000,000 | ||||
Pledged asset lines [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 2,000,000 | 0 | ||||
Pledged asset lines [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Other [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Current | 168,000,000 | 180,000,000 | ||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Total loans | 168,000,000 | 180,000,000 | ||||
Allowance for loan losses | 2,000,000 | 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 3,000,000 | $ 2,000,000 |
Total bank loans – net | 166,000,000 | 178,000,000 | ||||
Other [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Other [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
Other [Member] | More Than 90 Days Past Due and Other Nonaccrual Loans [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Past due and other nonaccrual loans | 0 | 0 | ||||
First Mortgage and HELOC [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Unamortized premiums and discounts and direct origination costs | $ 71,000,000 | $ 73,000,000 | ||||
First Mortgage and HELOC [Member] | Loans, Geographic Area [Member] | California [Member] | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Concentration risk percentage | 47.00% | 47.00% |
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 16,658 | $ 16,630 |
First Mortgage and HELOC [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 10,700 | |
Adjustable Rate First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Bank loans | $ 9,500 | |
Percent of loans with interest-only payments | 30.00% | |
Percent of interest only adjustable rate | 65.00% | |
Adjustable Rate First Mortgage [Member] | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fixed rate interest rate period | 3 years | |
Interest-only reset period | 3 years | |
Adjustable Rate First Mortgage [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fixed rate interest rate period | 10 years | |
HELOCs [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan term | 30 years | |
Initial draw period | 10 years | |
Converting to amortizing loans period | 20 years | |
Total bank loans | $ 1,308 | $ 1,505 |
Percent of loan balance outstanding, borrowers paid only minimum due | 52.00% | |
Home Equity Secured By Second Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 1,100 |
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 21 | $ 27 | $ 21 | $ 26 |
Charge-offs | 0 | (1) | 0 | (1) |
Recoveries | 1 | 1 | 2 | 1 |
Provision for loan losses | (3) | (1) | (4) | 0 |
Balance at end of period | 19 | 26 | 19 | 26 |
First Mortgage [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 14 | 17 | 14 | 16 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 1 | 0 | 1 | 0 |
Provision for loan losses | (3) | 0 | (3) | 1 |
Balance at end of period | 12 | 17 | 12 | 17 |
HELOCs [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 5 | 7 | 5 | 8 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 1 | 1 | 1 |
Provision for loan losses | 0 | (1) | (1) | (2) |
Balance at end of period | 5 | 7 | 5 | 7 |
Other [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 2 | 3 | 2 | 2 |
Charge-offs | 0 | (1) | 0 | (1) |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 | 1 |
Balance at end of period | $ 2 | $ 2 | $ 2 | $ 2 |
Bank Loans and Related Allowance for Loan Losses (Impaired Assets) (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings | $ 2 | $ 4 |
Total impaired assets | 23 | 28 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 21 | 24 |
Nonperforming Financial Instruments [Member] | Nonaccrual Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 19 | 21 |
Nonperforming Financial Instruments [Member] | Other Real Estate Owned [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | $ 2 | $ 3 |
Bank Loans and Related Allowance for Loan Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions |
Jun. 30, 2019
USD ($)
credit_rating
|
Dec. 31, 2018
USD ($)
credit_rating
|
---|---|---|
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 16,658 | $ 16,630 |
First Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 10,487 | $ 10,384 |
Weighted Average Updated FICO | credit_rating | 776 | 775 |
Percent of Loans on Nonaccrual Status | 0.06% | 0.07% |
First Mortgage [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 4 | $ 5 |
First Mortgage [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 78 | 83 |
First Mortgage [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,622 | 1,626 |
First Mortgage [Member] | Origination FICO Score 740 and Above [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 8,783 | 8,670 |
First Mortgage [Member] | Year of origination Pre 2015 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,992 | 2,387 |
First Mortgage [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 951 | 1,050 |
First Mortgage [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 2,469 | 2,606 |
First Mortgage [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 2,235 | 2,366 |
First Mortgage [Member] | Year of origination 2018 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,782 | 1,975 |
First Mortgage [Member] | Year of origination 2019 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,058 | |
First Mortgage [Member] | Estimated Current LTV 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 9,499 | $ 9,396 |
Weighted Average Updated FICO | credit_rating | 776 | 776 |
Percent of Loans on Nonaccrual Status | 0.03% | 0.04% |
First Mortgage [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 986 | $ 985 |
Weighted Average Updated FICO | credit_rating | 770 | 769 |
Percent of Loans on Nonaccrual Status | 0.31% | 0.41% |
First Mortgage [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 1 | $ 2 |
Weighted Average Updated FICO | credit_rating | 675 | 717 |
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
First Mortgage [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 1 | $ 1 |
Weighted Average Updated FICO | credit_rating | 753 | 753 |
Percent of Loans on Nonaccrual Status | 0.00% | 0.00% |
First Mortgage [Member] | Origination Loan to Value Ratio 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 7,880 | $ 7,815 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 2,603 | 2,564 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 4 | 5 |
HELOCs [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 1,308 | $ 1,505 |
Weighted Average Updated FICO | credit_rating | 768 | 769 |
Percent of Loans on Nonaccrual Status | 0.25% | 0.17% |
HELOCs [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 0 | $ 0 |
HELOCs [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 7 | 8 |
HELOCs [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 251 | 282 |
HELOCs [Member] | Origination FICO Score 740 and Above [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 1,050 | 1,215 |
HELOCs [Member] | Year of origination Pre 2015 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 947 | 1,140 |
HELOCs [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 92 | 106 |
HELOCs [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 85 | 95 |
HELOCs [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 96 | 99 |
HELOCs [Member] | Year of origination 2018 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 70 | 65 |
HELOCs [Member] | Year of origination 2019 [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 18 | |
HELOCs [Member] | Estimated Current LTV 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 1,235 | $ 1,416 |
Weighted Average Updated FICO | credit_rating | 769 | 770 |
Percent of Loans on Nonaccrual Status | 0.20% | 0.13% |
HELOCs [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 65 | $ 80 |
Weighted Average Updated FICO | credit_rating | 751 | 752 |
Percent of Loans on Nonaccrual Status | 0.86% | 0.60% |
HELOCs [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 5 | $ 6 |
Weighted Average Updated FICO | credit_rating | 726 | 729 |
Percent of Loans on Nonaccrual Status | 2.56% | 3.36% |
HELOCs [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 3 | $ 3 |
Weighted Average Updated FICO | credit_rating | 687 | 702 |
Percent of Loans on Nonaccrual Status | 6.28% | 0.00% |
HELOCs [Member] | Origination Loan to Value Ratio 70% and Below [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 928 | $ 1,064 |
HELOCs [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 374 | 434 |
HELOCs [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 6 | 7 |
Pledged asset lines [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | 4,695 | 4,561 |
Pledged asset lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Balance | $ 4,695 | $ 4,561 |
Weighted Average Updated FICO | credit_rating | 765 | 766 |
Percent of Loans on Nonaccrual Status | 0.02% | 0.00% |
Bank Loans and Related Allowance for Loan Losses (Convert to Amortizing Loans) (Details) - HELOCs [Member] $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Converted to an amortizing loan by period end | $ 591 |
Within 1 year | 58 |
1 year – 3 years | 90 |
3 years – 5 years | 173 |
5 years | 396 |
Total | $ 1,308 |
Variable Interest Entities (Aggregate Assets, Liabilities and Maximum Exposure to Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 540 | $ 408 |
Aggregate liabilities | 266 | 188 |
Maximum exposure to loss | 577 | 462 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 453 | 338 |
Aggregate liabilities | 266 | 188 |
Maximum exposure to loss | 453 | 338 |
Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 87 | 70 |
Aggregate liabilities | 0 | 0 |
Maximum exposure to loss | $ 124 | $ 124 |
Bank Deposits (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Interest-bearing deposits: | ||
Deposits swept from brokerage accounts | $ 190,491 | $ 212,311 |
Checking | 11,971 | 12,523 |
Savings and other | 5,189 | 5,827 |
Total interest-bearing deposits | 207,651 | 230,661 |
Non-interest-bearing deposits | 724 | 762 |
Total bank deposits | $ 208,375 | $ 231,423 |
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 5.45% | |
Senior Notes | $ 7,481 | $ 6,881 |
Finance lease obligation | 0 | 52 |
Unamortized discount — net | (15) | (15) |
Debt issuance costs | (42) | (40) |
Total long-term debt | $ 7,424 | 6,878 |
Senior Notes [Member] | Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.45% | |
Senior Notes | $ 700 | 700 |
Senior Notes [Member] | Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.25% | |
Senior Notes | $ 600 | 600 |
Senior Notes [Member] | Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.225% | |
Senior Notes | $ 256 | 256 |
Senior Notes [Member] | Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 2.65% | |
Senior Notes | $ 800 | 800 |
Senior Notes [Member] | Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.55% | |
Senior Notes | $ 500 | 500 |
Senior Notes [Member] | Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.00% | |
Senior Notes | $ 375 | 375 |
Senior Notes [Member] | Senior Notes Due May 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.85% | |
Senior Notes | $ 750 | 750 |
Senior Notes [Member] | Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.45% | |
Senior Notes | $ 350 | 350 |
Senior Notes [Member] | Senior Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 650 | 650 |
Senior Notes [Member] | Senior Notes Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 700 | 700 |
Senior Notes [Member] | Senior Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.00% | |
Senior Notes | $ 600 | 600 |
Senior Notes [Member] | Senior Notes Due May 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.25% | |
Senior Notes | $ 600 | 0 |
Senior Notes [Member] | Floating Rate Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 600 | $ 600 |
Senior Notes [Member] | Floating Rate Senior Notes Due 2021 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread rate | 0.32% |
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Disclosure [Abstract] | ||
2019 | $ 0 | |
2020 | 700 | |
2021 | 1,200 | |
2022 | 256 | |
2023 | 800 | |
Thereafter | 4,525 | |
Total maturities | 7,481 | |
Unamortized discount, net | (15) | $ (15) |
Debt issuance costs | (42) | (40) |
Total long-term debt | $ 7,424 | $ 6,878 |
Borrowings (Narrative) (Details) - Federal Home Loan Bank Advances [Member] - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Line of Credit Facility [Line Items] | ||
FHLB stock | $ 34,000,000 | $ 32,000,000 |
Secured Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 35,200,000,000 | 35,500,000,000 |
Amounts outstanding | $ 0 | $ 0 |
Leases (Leases) (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Leases [Abstract] | |
Operating lease assets | $ 601 |
Operating lease liabilities | $ 670 |
Leases (Lease Cost) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Leases [Abstract] | ||
Operating lease cost | $ 33 | $ 66 |
Variable lease cost | $ 6 | $ 17 |
Leases (Lease Term and Discount Rate) (Details) |
Jun. 30, 2019 |
---|---|
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 7 years 3 months 18 days |
Weighted-average discount rate | 3.50% |
Leases (Maturity of Lease Liabilities) (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Lessor, Lease, Description [Line Items] | |
2019 | $ 60 |
2020 | 132 |
2021 | 109 |
2022 | 88 |
2023 | 80 |
After 2023 | 299 |
Total lease payments | 768 |
Less: Interest | 98 |
Operating lease liability | 670 |
Lease not yet commenced | $ 50 |
Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Lease not yet commenced, term | 3 years |
Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Lease not yet commenced, term | 20 years |
Leases (Maturity of Lease Liabilities Before 842) (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
Operating Leases | |
2019 | $ 131 |
2020 | 125 |
2021 | 101 |
2022 | 79 |
2023 | 72 |
Thereafter | 282 |
Total | 790 |
Subleases | |
2019 | 4 |
2020 | 4 |
2021 | 4 |
2022 | 2 |
2023 | 1 |
Thereafter | 0 |
Total | 15 |
Net | |
2019 | 127 |
2020 | 121 |
2021 | 97 |
2022 | 77 |
2023 | 71 |
Thereafter | 282 |
Total | $ 775 |
Commitments and Contingencies (Commitments to Extend/Purchase) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to purchase | $ 12,222 | $ 11,314 | |||
First Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchased during period | $ 702 | $ 594 | 1,100 | $ 1,100 | |
Commitments to purchase | 640 | 268 | |||
HELOCs [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Purchased during period | 66 | $ 100 | 128 | $ 207 | |
Home Equity Loans and Lines of Credit Pledged Asset Lines and Other Lines of Credit [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ 11,582 | $ 11,582 | $ 11,046 |
Commitments and Contingencies (Details) |
Jun. 30, 2019
USD ($)
|
---|---|
Loss Contingencies [Line Items] | |
Aggregate face amount of letter of credit agreements | $ 225,000,000 |
Performance Guarantee [Member] | |
Loss Contingencies [Line Items] | |
Liability for guarantees | 0 |
Margin Requirements [Member] | |
Loss Contingencies [Line Items] | |
Funds drawn under LOC's | $ 0 |
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Narrative) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Securities Financing Transaction, Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value of borrowed securities from other broker-dealers to fulfill short sales by clients | $ 76 | $ 99 |
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Resale agreements | ||
Gross Assets | $ 8,134 | $ 7,195 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 8,134 | 7,195 |
Counterparty Offsetting | 0 | 0 |
Collateral | (8,134) | (7,195) |
Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Assets | 78 | 101 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 78 | 101 |
Counterparty Offsetting | (78) | (98) |
Collateral | 0 | (3) |
Net Amount | 0 | 0 |
Total Gross Assets | 8,212 | 7,296 |
Total Assets, Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Total Assets, Net Amounts Presented in the Condensed Consolidated Balance Sheets | 8,212 | 7,296 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (78) | (98) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (8,134) | (7,198) |
Total Assets, Net Amount | 0 | 0 |
Securities loaned | ||
Gross Liabilities | 1,554 | 1,184 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Condensed Consolidated Balance Sheets | 1,554 | 1,184 |
Counterparty Offsetting | (78) | (98) |
Collateral | (1,362) | (975) |
Net Amount | 114 | 111 |
Total Gross Liabilities | 1,554 | 1,184 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 1,554 | 1,184 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (78) | (98) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (1,362) | (975) |
Total Liabilities, Net Amount | 114 | 111 |
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | $ 27,036 | $ 26,628 |
Resale And Repurchase Agreements [Member] | ||
Offsetting Assets [Line Items] | ||
Percentage of collateral to related assets | 102.00% | 102.00% |
Fair value of client securities available to be pledged | $ 8,300 | $ 7,400 |
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Securities Financing Transaction [Line Items] | ||
Fair value of client securities available to be pledged | $ 27,036 | $ 26,628 |
Total collateral pledged | 5,016 | 4,581 |
Fulfillment of Requirements with the Options Clearing Corporation [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 1,716 | 2,315 |
Fulfillment of Client Short Sales [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 2,052 | 1,292 |
Securities Lending to Other Broker-Dealers [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | 1,248 | 974 |
Fully Paid Client Securities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Total collateral pledged | $ 190 | $ 97 |
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | $ 538 | $ 539 |
Available for sale securities | 54,648 | 66,578 |
Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 422 | 522 |
Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 2,126 | 3,685 |
U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 32,987 | 25,556 |
U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 7,333 | 18,302 |
Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,085 | 10,085 |
Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 5,431 | 7,467 |
U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 250 | 898 |
Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 49 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 14 | 14 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,849 | 8,292 |
Investments segregated and on deposit for regulatory purposes | 3,104 | 4,671 |
Other securities owned | 538 | 539 |
Available for sale securities | 54,648 | 66,578 |
Total | 61,139 | 80,080 |
Fair Value, Recurring [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,568 | 3,429 |
Fair Value, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,281 | 4,863 |
Available for sale securities | 422 | 522 |
Fair Value, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 1,602 | 1,396 |
Available for sale securities | 2,126 | 3,685 |
Fair Value, Recurring [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 1,502 | 3,275 |
Fair Value, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 433 | 441 |
Fair Value, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 26 | 39 |
Fair Value, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 70 | 33 |
Fair Value, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 9 | 26 |
Fair Value, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 32,987 | 25,556 |
Fair Value, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 7,333 | 18,302 |
Fair Value, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,085 | 10,085 |
Fair Value, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 5,431 | 7,467 |
Fair Value, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 250 | 898 |
Fair Value, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 49 | |
Fair Value, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 14 | 14 |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,568 | 3,429 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 447 | 470 |
Available for sale securities | 0 | 0 |
Total | 2,015 | 3,899 |
Fair Value, Recurring [Member] | Level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,568 | 3,429 |
Fair Value, Recurring [Member] | Level 1 [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 433 | 441 |
Fair Value, Recurring [Member] | Level 1 [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 5 | 3 |
Fair Value, Recurring [Member] | Level 1 [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 9 | 26 |
Fair Value, Recurring [Member] | Level 1 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Recurring [Member] | Level 1 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,281 | 4,863 |
Investments segregated and on deposit for regulatory purposes | 3,104 | 4,671 |
Other securities owned | 91 | 69 |
Available for sale securities | 54,648 | 66,578 |
Total | 59,124 | 76,181 |
Fair Value, Recurring [Member] | Level 2 [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,281 | 4,863 |
Available for sale securities | 422 | 522 |
Fair Value, Recurring [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 1,602 | 1,396 |
Available for sale securities | 2,126 | 3,685 |
Fair Value, Recurring [Member] | Level 2 [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 1,502 | 3,275 |
Fair Value, Recurring [Member] | Level 2 [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 26 | 39 |
Fair Value, Recurring [Member] | Level 2 [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 65 | 30 |
Fair Value, Recurring [Member] | Level 2 [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 32,987 | 25,556 |
Fair Value, Recurring [Member] | Level 2 [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 7,333 | 18,302 |
Fair Value, Recurring [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,085 | 10,085 |
Fair Value, Recurring [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 5,431 | 7,467 |
Fair Value, Recurring [Member] | Level 2 [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 250 | 898 |
Fair Value, Recurring [Member] | Level 2 [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 49 | |
Fair Value, Recurring [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 14 | 14 |
Fair Value, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 0 | 0 |
Available for sale securities | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | U.S. Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Recurring [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 | $ 0 |
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Assets | ||
Held to maturity securities | $ 139,494 | $ 142,038 |
U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 113,533 | 116,093 |
Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 18,261 | 18,546 |
Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,633 | 4,432 |
U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,403 | 1,348 |
Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,167 | 1,142 |
U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 227 | 217 |
Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 201 | 201 |
Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | 49 |
Carrying Amount [Member] | ||
Assets | ||
Cash and cash equivalents | 21,350 | 19,646 |
Cash and investments segregated and on deposit for regulatory purposes | 11,026 | 8,886 |
Receivables from brokers, dealers, and clearing organizations | 463 | 553 |
Receivables from brokerage clients — net | 21,418 | 21,641 |
Held to maturity securities | 138,326 | 144,009 |
Bank loans – net | 16,639 | 16,609 |
Other assets | 580 | 460 |
Total | 209,802 | 211,804 |
Liabilities | ||
Bank deposits | 208,375 | 231,423 |
Payables to brokers, dealers, and clearing organizations | 4,622 | 1,831 |
Payables to brokerage clients | 31,013 | 32,726 |
Accrued expenses and other liabilities | 1,307 | 1,370 |
Long-term debt | 7,424 | 6,878 |
Total | 252,741 | 274,228 |
Carrying Amount [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 10,475 | 10,370 |
Carrying Amount [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 1,303 | 1,500 |
Carrying Amount [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 4,695 | 4,561 |
Carrying Amount [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 166 | 178 |
Carrying Amount [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 112,570 | 118,064 |
Carrying Amount [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 18,218 | 18,502 |
Carrying Amount [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,593 | 4,477 |
Carrying Amount [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,310 | 1,327 |
Carrying Amount [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,143 | 1,156 |
Carrying Amount [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 223 | 223 |
Carrying Amount [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 200 | 200 |
Carrying Amount [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | 50 |
Carrying Amount [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 19 | 10 |
Portion at Other than Fair Value Measurement [Member] | ||
Assets | ||
Cash and cash equivalents | 21,350 | 19,646 |
Cash and investments segregated and on deposit for regulatory purposes | 11,026 | 8,886 |
Receivables from brokers, dealers, and clearing organizations | 463 | 553 |
Receivables from brokerage clients — net | 21,418 | 21,641 |
Held to maturity securities | 139,494 | 142,038 |
Bank loans – net | 16,741 | 16,515 |
Other assets | 580 | 460 |
Total | 211,072 | 209,739 |
Liabilities | ||
Bank deposits | 208,375 | 231,423 |
Payables to brokers, dealers, and clearing organizations | 4,622 | 1,831 |
Payables to brokerage clients | 31,013 | 32,726 |
Accrued expenses and other liabilities | 1,307 | 1,370 |
Long-term debt | 7,695 | 6,827 |
Total | 253,012 | 274,177 |
Portion at Other than Fair Value Measurement [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 10,490 | 10,193 |
Portion at Other than Fair Value Measurement [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 1,390 | 1,583 |
Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 4,695 | 4,561 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 166 | 178 |
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 113,533 | 116,093 |
Portion at Other than Fair Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 18,261 | 18,546 |
Portion at Other than Fair Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,633 | 4,432 |
Portion at Other than Fair Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,403 | 1,348 |
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,167 | 1,142 |
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 227 | 217 |
Portion at Other than Fair Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 201 | 201 |
Portion at Other than Fair Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | 49 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 19 | 10 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients — net | 0 | 0 |
Held to maturity securities | 0 | 0 |
Bank loans – net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | ||
Assets | ||
Cash and cash equivalents | 21,350 | 19,646 |
Cash and investments segregated and on deposit for regulatory purposes | 11,026 | 8,886 |
Receivables from brokers, dealers, and clearing organizations | 463 | 553 |
Receivables from brokerage clients — net | 21,418 | 21,641 |
Held to maturity securities | 139,494 | 142,038 |
Bank loans – net | 16,741 | 16,515 |
Other assets | 580 | 460 |
Total | 211,072 | 209,739 |
Liabilities | ||
Bank deposits | 208,375 | 231,423 |
Payables to brokers, dealers, and clearing organizations | 4,622 | 1,831 |
Payables to brokerage clients | 31,013 | 32,726 |
Accrued expenses and other liabilities | 1,307 | 1,370 |
Long-term debt | 7,695 | 6,827 |
Total | 253,012 | 274,177 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 10,490 | 10,193 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 1,390 | 1,583 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 4,695 | 4,561 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 166 | 178 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 113,533 | 116,093 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 18,261 | 18,546 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 4,633 | 4,432 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 1,403 | 1,348 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 1,167 | 1,142 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 227 | 217 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 201 | 201 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 50 | 49 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | 19 | 10 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients — net | 0 | 0 |
Held to maturity securities | 0 | 0 |
Bank loans – net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | First Mortgage [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | HELOCs [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Pledged asset lines [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Other [Member] | ||
Assets | ||
Bank loans – net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Asset-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | U.S. state and municipal securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | U.S. Treasury securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Certificates of deposit [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Foreign government agency securities [Member] | ||
Assets | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Other [Member] | ||
Assets | ||
Held to maturity securities | $ 0 | $ 0 |
Stockholders' Equity (Narrative) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2019 |
Jan. 30, 2019 |
|
Class of Stock [Line Items] | ||||
Shares repurchased | $ 1,220,000,000 | $ 1,220,000,000 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Share repurchase, authorized amount | $ 4,000,000,000.0 | |||
Shares repurchased (in shares) | 29,000,000 | 0 | ||
Shares repurchased | $ 1,200,000,000 |
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Class of Stock [Line Items] | ||
Shares issued (in shares) | 1,761,000 | 1,761,000 |
Shares outstanding (in shares) | 1,761,000 | 1,761,000 |
Carrying Value | $ 2,793 | $ 2,793 |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 600,000 | 600,000 |
Shares outstanding (in shares) | 600,000 | 600,000 |
Liquidation preference per share (USD per share) | $ 1,000 | |
Carrying Value | $ 585 | $ 585 |
Dividend Rate in Effect | 6.00% | |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 750,000 | 750,000 |
Shares outstanding (in shares) | 750,000 | 750,000 |
Liquidation preference per share (USD per share) | $ 1,000 | |
Carrying Value | $ 728 | $ 728 |
Dividend Rate in Effect | 5.95% | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 400,000 | 400,000 |
Shares outstanding (in shares) | 400,000 | 400,000 |
Liquidation preference per share (USD per share) | $ 1,000 | |
Carrying Value | $ 397 | $ 397 |
Dividend Rate in Effect | 7.00% | |
Series A Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 4.82% | |
Series E Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 6,000 | 6,000 |
Shares outstanding (in shares) | 6,000 | 6,000 |
Liquidation preference per share (USD per share) | $ 100,000 | |
Carrying Value | $ 591 | $ 591 |
Dividend Rate in Effect | 4.625% | |
Series E Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 3.315% | |
Series F Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 5,000 | 5,000 |
Shares outstanding (in shares) | 5,000 | 5,000 |
Liquidation preference per share (USD per share) | $ 100,000 | |
Carrying Value | $ 492 | $ 492 |
Dividend Rate in Effect | 5.00% | |
Series F Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 2.575% |
Stockholders' Equity (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Class of Stock [Line Items] | ||||
Dividends declared | $ 47 | $ 49 | $ 81 | $ 83 |
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 14 | $ 14 | $ 14 | $ 14 |
Dividends declared, per share amount (USD per share) | $ 35.00 | $ 35.00 | $ 35.00 | $ 35.00 |
Series C Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 9 | $ 9 | $ 18 | $ 18 |
Dividends declared, per share amount (USD per share) | $ 15.00 | $ 15.00 | $ 30.00 | $ 30.00 |
Series D Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 11 | $ 11 | $ 22 | $ 22 |
Dividends declared, per share amount (USD per share) | $ 14.88 | $ 14.88 | $ 29.76 | $ 29.76 |
Series E Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 0 | $ 0 | $ 14 | $ 14 |
Dividends declared, per share amount (USD per share) | $ 0 | $ 0 | $ 2,312.50 | $ 2,312.50 |
Series F Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends declared | $ 13 | $ 15 | $ 13 | $ 15 |
Dividends declared, per share amount (USD per share) | $ 2,500.00 | $ 2,930.56 | $ 2,500.00 | $ 2,930.56 |
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Other comprehensive income (loss) before tax | ||||
Net unrealized gain (loss) | $ 218 | $ (33) | $ 445 | $ (141) |
Other reclassifications included in other revenue | (3) | 0 | (4) | 0 |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 8 | 9 | 20 | 18 |
Other comprehensive income (loss), before tax | 223 | (24) | 461 | (123) |
Tax Effect | ||||
Net unrealized gain (loss) | (53) | 8 | (107) | 34 |
Other reclassifications included in other revenue | 1 | 0 | 1 | 0 |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | (1) | (2) | (4) | (4) |
Other comprehensive income (loss) | (53) | 6 | (110) | 30 |
Net of Tax | ||||
Net unrealized gain (loss) | 165 | (25) | 338 | (107) |
Other reclassifications included in other revenue | (2) | 0 | (3) | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 7 | 7 | 16 | 14 |
Other comprehensive income (loss), net of tax | $ 170 | $ (18) | $ 351 | $ (93) |
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Accumulated Other Comprehensive Income | ||||
Beginning Balance | $ (71) | $ (260) | $ (252) | $ (152) |
Other net changes | 170 | (18) | 351 | (93) |
Ending Balance | 99 | (278) | 99 | (278) |
Adoption of accounting standards [Member] | ASU 2018-02 [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | (33) | |||
Net unrealized gain (loss) on available for sale securities [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | 165 | (25) | 319 | (107) |
Net unrealized gain on securities transferred to available for sale from held to maturity [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | 19 | |||
Other reclassifications included in other revenue [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | (2) | (3) | ||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale [Member] | ||||
Accumulated Other Comprehensive Income | ||||
Other net changes | $ 7 | $ 7 | $ 16 | $ 14 |
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 17,223 | $ 16,813 |
Actual Ratio | 20.50% | 17.60% |
Minimum Capital Requirement Amount | $ 3,775 | $ 4,295 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 20,016 | $ 19,606 |
Actual Ratio | 23.90% | 20.50% |
Minimum Capital Requirement Amount | $ 5,033 | $ 5,726 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 20,035 | $ 19,628 |
Actual Ratio | 23.90% | 20.60% |
Minimum Capital Requirement Amount | $ 6,710 | $ 7,635 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 20,016 | $ 19,606 |
Actual Ratio | 7.30% | 7.10% |
Minimum Capital Requirement Amount | $ 10,969 | $ 11,058 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Supplemental Leverage Ratio | ||
Actual Amount | $ 20,016 | |
Actual Ratio | 7.10% | |
Minimum Capital Requirement Amount | $ 8,420 | |
Minimum Capital Requirement Ratio | 3.00% | |
CSB [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 15,856 | $ 15,832 |
Actual Ratio | 22.70% | 19.70% |
Minimum to be Well Capitalized Amount | $ 4,550 | $ 5,233 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement Amount | $ 3,150 | $ 3,623 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 15,856 | $ 15,832 |
Actual Ratio | 22.70% | 19.70% |
Minimum to be Well Capitalized Amount | $ 5,600 | $ 6,441 |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Amount | $ 4,200 | $ 4,831 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 15,874 | $ 15,853 |
Actual Ratio | 22.70% | 19.70% |
Minimum to be Well Capitalized Amount | $ 7,000 | $ 8,051 |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Amount | $ 5,600 | $ 6,441 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 15,856 | $ 15,832 |
Actual Ratio | 7.40% | 7.20% |
Minimum to be Well Capitalized Amount | $ 10,719 | $ 11,044 |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Amount | $ 8,576 | $ 8,836 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Supplemental Leverage Ratio | ||
Actual Amount | $ 15,856 | |
Actual Ratio | 7.20% | |
Minimum Capital Requirement Amount | $ 6,619 | |
Minimum Capital Requirement Ratio | 3.00% |
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | $ 276,321 | $ 296,482 |
Charles Schwab Premier Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total assets | $ 13,800 |
Regulatory Requirements (Net Capital and Net Capital Requirements) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Banking and Thrift [Abstract] | ||
Net Capital | $ 2,346,000 | $ 2,304,000 |
Minimum net capital required | 250 | 250 |
2% of aggregate debit balances | 424,000 | 436,000 |
Net Capital in excess of required net capital | $ 1,922,000 | $ 1,868,000 |
Segment Information (Narrative) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2019
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Financial Information for Reportable Segments) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Net Revenues | ||||
Net interest revenue | $ 1,609 | $ 1,407 | $ 3,290 | $ 2,670 |
Other | 112 | 85 | 214 | 168 |
Total net revenues | 2,681 | 2,486 | 5,404 | 4,884 |
Expenses Excluding Interest | 1,445 | 1,355 | 2,904 | 2,751 |
Income before taxes on income | 1,236 | 1,131 | 2,500 | 2,133 |
Asset management and administration fees [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 786 | 814 | 1,541 | 1,665 |
Trading revenue [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 174 | 180 | 359 | 381 |
Investor Services [Member] | ||||
Net Revenues | ||||
Net interest revenue | 1,154 | 1,063 | 2,349 | 2,020 |
Other | 67 | 65 | 139 | 129 |
Total net revenues | 1,891 | 1,812 | 3,802 | 3,553 |
Expenses Excluding Interest | 1,057 | 1,012 | 2,119 | 2,054 |
Income before taxes on income | 834 | 800 | 1,683 | 1,499 |
Investor Services [Member] | Asset management and administration fees [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 560 | 569 | 1,093 | 1,162 |
Investor Services [Member] | Trading revenue [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 110 | 115 | 221 | 242 |
Advisor Services [Member] | ||||
Net Revenues | ||||
Net interest revenue | 455 | 344 | 941 | 650 |
Other | 45 | 20 | 75 | 39 |
Total net revenues | 790 | 674 | 1,602 | 1,331 |
Expenses Excluding Interest | 388 | 343 | 785 | 697 |
Income before taxes on income | 402 | 331 | 817 | 634 |
Advisor Services [Member] | Asset management and administration fees [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | 226 | 245 | 448 | 503 |
Advisor Services [Member] | Trading revenue [Member] | ||||
Net Revenues | ||||
Asset management and administration fees and Trading revenue | $ 64 | $ 65 | $ 138 | $ 139 |
Subsequent Events (Details) - Subsequent Event [Member] account in Millions, $ in Billions |
Jul. 25, 2019
USD ($)
account
|
---|---|
Subsequent Event [Line Items] | |
Number of brokerage and managed portfolio accounts acquired | account | 1 |
Client assets acquired | $ 90.0 |
Payments to acquire businesses | $ 1.8 |
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